MBA Newslinks Archive

“We still expect regulators to enforce the rules. We expect them to respond to violations, and protect consumers’ interests. Mick Mulvaney committed the Bureau to protecting consumers from unfair and deceptive practices and enforcing the law consistently. But he also committed the Bureau to identifying and addressing outdated and unduly burdensome regulations that impede competition, as required by law. This is a welcome change.”–MBA President and CEO Robert Broeksmit, CMB.

“With home prices reaching new heights in many metro areas, it’s no surprise people are continuing to move away from expensive metros in search of homeownership. Last year’s tax reform poured fuel on the fire. By capping mortgage interest and state and local tax deductions, there is an even greater incentive for homebuyers to consider moving to a lower-tax state.”–Taylor Marr, senior economist with Redfin, Seattle.

“Low inventory of homes for sale has been an issue this year, and newly constructed units have been one way to ease the shortage. Growth in August was focused in the lower price tiers. In fact, for the first time in four months, monthly growth was driven by the lower half of the market, based on application size.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“Because home prices are rising, and demand is strong, most mortgage fraud in this type of market is motivated by bona fide borrowers trying to qualify for a mortgage. Undisclosed real estate liabilities, credit repair, questionable down payment sources and income falsification are the most likely misrepresentations.”–Bridget Berg, principal of Fraud Solutions Strategy for CoreLogic, Irvine, Calif.

“A law or regulation has the force and effect of law. Unlike a law or regulation, supervisory guidance does not have the force and effect of law, and the agencies do not take enforcement actions based on supervisory guidance. Rather, supervisory guidance outlines the agencies’ supervisory expectations or priorities and articulates the agencies’ general views regarding appropriate practices for a given subject area.”–From a statement by five federal agencies clarifying the role of regulatory guidance.

“Overall credit availability saw a slight decrease in August, for the first time in four months, as the jumbo index retreated from its record high in July. Strong month-over-month increases in the jumbo index reversed because of a reduction in the number of jumbo programs. The decline in jumbo credit availability was offset partially by an increase in the conforming index, which increased over the month due to the addition of low down payment programs.”–MBA Associate Vice President of Economic and Industry Forecasting Joel Kan.

“Even as a strong market broadly benefits homeowners, it’s still very hard for people starting with less money ever to catch up. On an absolute-dollar basis, homeowners in minority communities became wealthier, but still fell further behind.”–Redfin CEO Glenn Kelman, on an analysis of home values in white, minority and mixed-race neighborhoods between 2012 and 2018.

“While mortgage rates remain low by historic standards, they are creeping upward, eating into what buyers can pay, and in a handful of pricey markets, affordability already looks unnervingly low. Among lower-income buyers in those pricey markets, it is outright impossible to afford the mortgage on even a lower-priced home. As rates rise, both buyers and sellers will have to temper their expectations further.”–Zillow Senior Economist Aaron Terrazas.

“Housing is simply too important to our national economy and our local communities to risk disruption of the system by which it is financed.” –From an “open letter” by MBA and other trade groups to the Trump Administration and Congress urging action on secondary mortgage market reform.

“The job market remains quite strong, supporting purchase demand, which is 2 percent higher than last year at this time. However, home prices, while decelerating, continue to rise faster than household income. Average loan size for purchase loans dropped to its lowest level since December 2017, a sign that first-time buyers are finding a way into the market.”–MBA Chief Economist Mike Fratantoni.