MBA Newslinks Archive

“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.

“Despite more favorable borrowing costs, and after a three-week surge in activity, purchase applications have slowed over the past two weeks, and are now almost 2 percent lower than a year ago.”–Joel Kan, MBA Associate Vice President of Industry Surveys and Forecasting.

“I know there is talk about reducing the GSEs’ footprint, but reducing the QM patch is not the way to do it. I’m not convinced that there is enough private capital out there to supplement what we do in the marketplace.” –Dave Lowman, Executive Vice President of Single-Family Business with Freddie Mac.

“The job market remains exceptionally strong. Although the partial government shutdown may have temporarily increased the unemployment rate, this pace of job creation will continue to support higher wages, which will in turn support strong housing demand.”–MBA Chief Economist Mike Fratantoni.

“Effective FHLB housing goals would…promote increased investment by member institutions in affordable housing, while not introducing any features that could jeopardize FHLB safety and soundness.”–MBA Senior Vice President of Public Policy and Industry Relations Stephen O’Connor, in a letter to the Federal Housing Finance Agency on Federal Home Loan Bank housing goals.

“MBA welcomes the release of Chairman [Mike] Crapo’s principles for housing finance reform as a significant sign of his continued commitment to work toward finally ending the conservatorships of Fannie Mae and Freddie Mac and ensuring a stable and liquid market–with an explicit, paid-for government guarantee–for both single-family and multifamily mortgages. MBA looks forward to continuing to engage on a bipartisan basis with congressional leaders, the administration and other key stakeholders on reform efforts to create a system that supports borrowers, serves lenders of all sizes and business models and protects taxpayers.”–MBA President and CEO Robert Broeksmit, CMB.

“The biggest threat to the forecast is the possibility of a recession, which an increasing possibility by 2020. However, employment remains strong and the housing market is showing increasing signs of affordability, which is a good sign. Unemployment is at near-50-year lows and wage growth is picking up. That’s going to bring more potential home buyers in to the market.”–MBA Chief Economist Mike Fratantoni.