MBA Newslinks Archive

“Last month’s 8.2 percent annualized gain in purchase applications points to continued demand for new homes. Housing demand is still strong even as mortgage rates increase, and as a result, we’re still forecasting for modest growth in purchase origination volume in 2018.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“Small business owners and the self-employed, who represent up to 30% of the labor force (and growing), should not face unnecessary obstacles to homeownership. As the industry develops new, innovative, responsible methods of underwriting that are supported by technological advances, a more dynamic regulatory framework is needed to keep pace.” –MBA Senior Vice President of Legislative and Political Affairs Bill Killmer, in an MBA “Call to Action” on legislation that would create more opportunities for non-traditional mortgage borrowers.

“With the national unemployment rate remaining below 4 percent since July, further declines in U.S. delinquency rates are likely in coming months. The exception will be in local areas impacted by natural hazards or a rise in unemployment. The destruction of homes and disruption to local commerce caused by natural disasters lead to a subsequent spike in local delinquency rates, even for homes that were untouched.”–CoreLogic Chief Economist Frank Nothaft.

“Although the situation in the Carolinas continues to evolve as we speak, we are beginning to get a sense of the potential scope of the storm’s impact from a mortgage performance aspect. As those affected by the storm begin recovery efforts, recent history suggests many will have some difficulty remaining current on their mortgages.”–Ben Graboske, executive vice president of Black Knight’s Data & Analytics division.

“Credit availability moved lower in September, as tightening in the government index offset an increase in conventional credit availability. The decline in government credit was driven by fewer streamline offerings as well as a decline in loan programs with lower credit requirements.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“Lack of clear guidance in these areas in the proposed regulations will result in inconsistency, and therefore confusion for taxpayers who ‘need certainty in determining whether their trade or business generates income that is eligible for the section 199A deduction. Moreover, given that mortgage banking companies organized as pass-through entities compete directly in the real estate finance market with C corporations, the lack of clarifying guidance will result in a competitive imbalance that is squarely inconsistent with the very reason that section 199A was enacted.”–MBA President and CEO Robert Broeksmit, CMB, in a letter to Treasury/IRS regarding a proposed rulemaking clarifying the definition of business income deductions under Section 199A of the Internal Revenue Code.

“Short-term rates have been increasing but long-term rates have held steady, which should not pose too much of a headwind to home purchase activity, especially given the potential demand from demographic factors.”–MBA Associate Vice President of Economic and Industry Forecasting Joel Kan.

“Make no mistake, Proposition 10 will not lead to more affordable housing. Instead, it will remove any incentive to develop new affordable housing units and lead to higher housing costs in California’s already expensive market. This will harm the entire real estate finance industry in general and especially multifamily mortgage lenders. Moreover, if Proposition 10 succeeds, it is certain to be emulated by other states.”–From an MBA Mortgage Action Alliance Call to Action on Proposition 10, a controversial California ballot initiative.

“Hurricanes, and especially the flooding associated with these natural disasters, create the potential and opportunity for significant misrepresentation of collateral condition.”–First American Chief Economist Mark Fleming.

“MBA would like to commend the House for passing last evening–by voice vote–H.R. 6737, which addresses an unintended consequence from the enactment of Title III of S.2155, ‘Protecting Veterans from Predatory Lending,’ by allowing VA-guaranteed refinance loans to remain eligible for pooling in Ginnie Mae securities. More broadly, it will help to ensure the confidence in the VA home loan program that is necessary for it to remain a viable choice for the nation’s service members and veterans.”–Mortgage Bankers Association President and CEO Robert Broeksmit, CMB.