The government on Tuesday proposed revisions to the certifications on Federal Housing Administration (FHA) loans that were intended to ease fears about lending to riskier borrowers. The changes, however, drew mixed response from banking and mortgage officials. The Mortgage Bankers Association (MBA) also expressed concerns, saying the rules still lack clarity and don’t provide a way for lenders to correct minor errors.
Category: Top National News
A New Race to Refinance?
The Mortgage Bankers Association says mortgage applications rose 11.3 percent last week, with the biggest increase from homeowners wanting to lower the rate on their existing mortgage. Refinancing activity was up 16.8 percent from the previous week.
HMDA Data Expected to Brighten Mortgage Outlook
Mortgages are shaping up as one of the potential bright spots for lenders (and the economy) this year. The Home Mortgage Disclosure Act data due in the next few weeks is expected to show the turnaround actually began last year.
Fed Beige Book: Economic Activity ‘Continued Expanding’
A tightening labor market pushed up workers’ wages in pockets of the U.S. this summer, the Federal Reserve said Wednesday, but slowing growth in Asia threatened to hit American factories.
Three Fed Indexes Are Pointing to the Tightest U.S. Financial Conditions Since 2012
Data released Wednesday by the Chicago Fed showed a rise in risk premiums coupled with a deterioration in leverage and credit conditions in the week through Aug. 28, all of which propelled the bank’s National Financial Conditions Index to its highest level since November 2012.
Autos Lift U.S. Factory Orders in July
New orders for U.S. factory goods rose for a second straight month in July on strong demand for automobiles, which could help to keep manufacturing supported as it deals with a strong dollar and softening global demand.
U.S. Housing Recovery Remains Strong Despite Stock Market Swings, China’s Swoon
While many investors are trying hard to ignore the recent stock market turmoil, a growing number of American homeowners are capitalizing on the chaos. “You had some borrowers looking to refinance who really took advantage of the short availability of very low rates,” Mike Fratantoni, the association’s chief economist.
Mortgage Industry to CFPB: Stop Normalizing Bad Data
The Mortgage Bankers Association, National Association of Federal Credit Unions and the Consumer Bankers Association have sent letters in the past 10 days to the Consumer Finanicla Protection Bureau. MBA’s letter reiterates its strong objections to the current structure of the Bureau’s Consumer Complaint Database and offered several recommendations to improve the database.
Blackstone Makes Investment in Mortgage Insurer PMI Group
The New York investment firm agreed to provide PMI with a loan for working capital needs, in connection with the purchase of a significant equity stake. Blackstone now has the rights to participate in future equity offerings and will nominate a director to the board.
Mortgage Lawsuits Against BofA, Citigroups and Wells Fargo Resurrected
A U.S. appeals court revived three lawsuits filed by the City of Miami against Wells Fargo, Bank of America and Citigroup, alleging predatory mortgage lending practices against minority borrowers.