Top National News Jan. 11, 2023

Here’s a summary of Top National News Items from major news sites and industry trade publications. To get started, click on the headline above:

Bob Broeksmit on the State of the Mortgage Industry in 2023
HousingWire, Jan. 10, 2023–Sarah Wheeler (podcast)
HousingWire Editor in Chief Sarah Wheeler interviewed Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association. They discussed the state of the mortgage industry and the economy in 2023.

Wells Fargo, Once the No. 1 Player in Mortgages, is Stepping Back from the Housing Market
CNBC, Jan. 10, 2023–Hugh Son
Instead of its previous goal of reaching as many Americans as possible, the company will now focus on home loans for existing bank and wealth management customers and borrowers in minority communities.

GSE Loan Purchases Head South, 4Q Volume at Just $159 Billion
Inside Mortgage Finance, Jan. 10, 2023–Dennis Hollier (subscription)
Fannie Mae and Freddie Mac issued just $158.94 billion of mortgage-backed securities in the fourth quarter, down 36.6% from the previous period. This brought total MBS issuance for 2022 to just $1.179 trillion, a 55.2% drop from a year ago.

Luxury Real Estate Market Takes A Hit As Home Sales Drop By Record-Breaking 38%
Benzinga, Jan. 10, 2023–AJ Fabino
Marred by inflation, elevated interest rates and recessionary fears, luxury home sales saw a significant decline in the three months ending Nov. 30, with a drop of 38.1% year over year. This marks the largest decline on record, surpassing the previous record of 31.4%, according to recent data from Redfin Corp.

A 1981-Level Mortgage Rate Shock Has the Housing Market in a Correction…
Fortune, Jan. 10, 2023–Lance Lambert
The D.C.-based Mortgage Bankers Association projects that the 30-year fixed mortgage rate will average 5.2% in 2023. Beyond this year, it expects the average mortgage rate to hover around 4.4% in 2024 and 2025.

Mortgage Credit Availability Dipped In December
National Mortgage Professional, Jan. 10, 2023–David Krechevsky
Mortgage credit tightened slightly in December as mortgage rates remained high, the Mortgage Bankers Association said Tuesday. According to the MBA’s Mortgage Credit Availability Index, which analyzes data from ICE Mortgage Technology, the MCAI fell 0.1% to 103.3 in December.

Lender Says Rival Stole Trade Secrets, Data Breach Followed
National Mortgage News, Jan. 10, 2023–Andrew Martinez (subscription)
Sturbridge, Massachusetts-based Northpoint Mortgage is accusing three Integrity Mortgage employees of breach of contract in the suit filed last week in the U.S. District Court for the District of Maine. The workers allegedly switched companies in late November and took from Northpoint a large amount of customer information.

North American Savings Bank to Shut Down Consumer Direct Division
HousingWire, Jan. 10, 2023–Flávia Furlan Nunes
Kansas City, Missouri-based North American Savings Bank will shut down its consumer direct mortgage division and lay off employees, business partners and former employees told HousingWire. The changes will be effective on March 7.

U.S. Rental Market–What’s Happening?
Mortgage Professional America, Jan. 10, 2023–Tony Cantu
Consumers are opting to rent rather than purchase amid higher interest rates, creating unprecedented competition in the single-family rental market.

Fed Adds to Diversity on Bank Board Leadership
Reuters, Jan. 10, 2023–Ann Saphir
The Federal Reserve on Tuesday added to the diversity of its regional Fed bank board leadership, announcing a group of chairs and deputy chairs that for a second straight year are majority women and minorities.

Powell: Nonbanks Need Structural Reforms, Not Fed Backstop
American Banker, Jan. 10, 2023–Kyle Campbell (subscription)
Federal Reserve Chair Jerome Powell said Tuesday that what big banks were to the 2008 financial crisis, nonbank financial institutions are to the pandemic era — but he drew the line on how far to carry that comparison.