MBA Newslinks Archive

“Given the rapid increase in home prices over the past few years, and the recent pick-up in mortgage rates, the housing market continues to struggle with diminished affordability. The notable deceleration in median home price growth, 3.8% in October compared to roughly 6% in 2017, is a positive sign, as it indicates that home prices are rising at a more sustainable pace.”–MBA Chief Economist Mike Fratantoni, on last week’s existing home sales report.

“MBA believes that the requirements of the CECL standard, which is effective for SEC registrants in 2020, and for all other companies in 2021, will adversely impact the availability, structure and price of credit, with a larger proportion of such impact landing on longer-term loans, such as 30-year single-family residential mortgages, commercial and multifamily mortgages, student and business loans.”–MBA President and CEO Robert Broeksmit, CMB, in a letter to Treasury Secretary Steven Mnuchin to delay a credit loss accounting standard implementation pending a quantitative impact study.

“Marcia’s tireless commitment to supporting women through mPower has resulted in winning a Stevie Award for Women in Business. Marcia is an exceptional leader and voice in the mortgage banking community, and under her direction, mPower is helping MBA members and the entire industry expand their networks and maximize their overall potential.”–MBA President and CEO Bob Broeksmit, CMB, on MBA COO Marcia Davies winning a Stevie Award for Women in Business.

“Rising interest rates took some wind out of the market’s sails…The [commercial mortgage-backed-securities] and bank lending markets were the hardest hit. Meanwhile, lending backed by multifamily properties and for the government-sponsored enterprises continued to grow.”–Jamie Woodwell, MBA Vice President of Commercial Real Estate Research.

“Reverse mortgages are an important financial tool that, if used properly, can allow the growing number of retirees to age in place. MBA applauds the recent steps FHA has taken to stabilize and improve the HECM program, and policymakers should continue considering ways to insulate the forward program from the volatility in the reverse program.”–MBA President and CEO Robert Broeksmit, CMB, on the actuarial report released yesterday on FHA finances.

“Adopting uniform servicing data standards must be viewed as a long-term investment rather than a near-term expense. This investment, which will require strong stakeholder commitment, will go well beyond reducing costs and risks for servicers and improving customer satisfaction.”–From an Urban Institute paper on the need for uniform mortgage data standards for the servicing industry.

“The important point is that private capital needs to be at the ready if and when the Administration or the Federal Housing Finance Agency start taking steps to reduce the market’s reliance on Fannie and Freddie.” –MBA President and CEO Robert D. Broeksmit, CMB.

“While cash-outs make up the highest share of refinances they have since 2008, this is no reason for alarm. In an environment of home price appreciation, people commonly tap into their home equity. Cash-out refinances allow homeowners to make home improvements, pay for educational and health care expenses, or maybe even buy the boat they’ve always wanted. Of course, prudent underwriting of the risks is always important, and current numbers indicate that cash-out underwriting is being done prudently.”–From an Urban Institute analysis of cash-out refinancings.

“Despite the small uptick this quarter, the healthy economy is overall supporting low mortgage delinquencies and foreclosure inventories. Unemployment is at its lowest levels since 1969, wages have grown 3.1 percent year-over-year–the biggest jump in almost a decade–and job growth is averaging over 212,000 jobs per month thus far.”–MBA Vice President of Industry Analysis Marina Walsh.

“Commercial real estate finance markets are on pace to match last year’s record volumes of borrowing and lending. Property incomes and values continue to grow, albeit at slower paces than previous years, and the amount of capital looking to be placed in real estate and debt remains robust. We anticipate that much of the momentum seen this year will carry on into 2019.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.