MBA Newslinks Archive

“Fintechs have helped make personal loans a credit product that is recognized as both a convenient and simple way to obtain funding online. More and more consumers see value in using a personal loan for their credit needs, whether to consolidate debt, finance a home improvement project or pay for an online purchase.”–Jason Laky, senior vice president and consumer lending line of business leader with TransUnion, Chicago.

“After four consecutive declines, purchase applications increased almost 2 percent over the week and 2.5 percent compared to a year ago–showing some promise as we edge closer to the spring homebuying season.”–MBA Associate Vice President of Industry Surveys and Forecasts Joel Kan.

“With the unemployment rate near 50-year lows, wage growth trending higher and household debt levels relative to disposable incomes at 35-year lows, homeowners are in great shape, and mortgage performance is quite strong.” –Marina Walsh, MBA Vice President of Industry Analysis.

“For four years, it felt like home buyers couldn’t catch a break as for-sale inventory became tighter and tighter with each passing month. But during the second half of 2018, something shifted. Home buyers aren’t out of the woods yet, but there is a glimmer of light on the horizon. The number of homes on the market is hesitantly inching higher–now approaching the highest level in a year and a half.”–Zillow Senior Economist Aaron Terrazas.

“Despite the jitters potential homebuyers felt in December from the volatility in the financial markets, the healthy job market and wage growth, moderating price gains and lower mortgage rates all helped home sales recover. Additionally, builders seem to be seeing improvement in their labor shortages, as recently released government survey data showed increases in construction hiring and openings in December.” –Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“For the past three years one of the most popular questions here at the CREF Convention has been, ‘What inning are we in?’ In reality, many expected this game to have ended by now and the market to start a down-leg. Instead, we’re in a new phase, something we have never seen before–a plateau.”–MBA President and CEO Bob Broeksmit, CMB.

“The upcoming roll of commercial and multifamily mortgage maturities is relatively stable, after seven years of instability. Many commercial and multifamily mortgages have 10-year terms, and a decade ago, the Great Recession meant fewer new loans were being made. As a result, 2018 and 2019 loan maturity volumes have been smaller than would otherwise be the case. However, a sizable share of shorter term loans financed in the last few years have made up the difference.”–MBA Vice President for Commercial Real Estate Research Jamie Woodwell.

“Investor and lender interest in multifamily and industrial properties continues to drive transaction volumes while questions about retail and office property markets have slowed activity for those property types. The market as a whole ended the year roughly flat compared to 2017, continuing a plateau we’ve seen in mortgage borrowing and lending since 2015.”–MBA Vice President for Commercial Real Estate Research Jamie Woodwell.

With mortgage rates now back down, early data from the first month of 2019 suggest that it is still premature to call it a buyer’s market. But more than any time in recent memory, it is important for sellers to be thoughtful in their listing strategy. Buyers are out there, but they’re no longer fighting each other tooth and nail to get in the door.”–Zillow Senior Economist Aaron Terrazas.

“The validity of the data used in alternative evaluations is highly predicated on the quality of the information found in prior appraisals. Should banking institutions over-utilize exemptions, resulting in significantly fewer physical appraisals, the integrity of the data and the quality of loan portfolios may be diminished. Therefore, it may be appropriate for the agencies to consider additional best practices for their regulated institutions, including the establishment of a cap on the share of loans within the portfolio for which the appraisal exemption is used.”–MBA Senior Vice President of Residential Policy and Member Engagement Pete Mills, in a letter for federal regulatory agencies on appraisal standards.