MBA Newslinks Archive

“Had the final bill not included the Rounds Amendment, the change in tax accounting for mortgage servicing rights would have had a devastating impact on the flow of capital that supports a robust and competitive real estate finance market, both single-and commercial/multifamily.”–MBA President and CEO David Stevens, CMB, on a tax reform bill that includes an exception for tax treatment of mortgage servicing rights.

“Immediate action needs to be taken by the IRS to rectify the recent changes to avoid a material impact to taxpayers who are borrowing money to finance the purchase of their home.”–From an MBA/trade group letter to the IRS urging changes to a tax processing procedure that is causing delays in home mortgage closings.

“It’s hard to say whether the use of cryptocurrency to buy and sell homes is a long-term trend or just a blip based on the recent spike in value. In some ways, cryptocurrency investors have just won the lottery, and so it makes perfect sense to buy their dream home. On the other side of the ‘coin,’ sellers probably wouldn’t accept lottery tickets as payment.”–Redfin chief economist Nela Richardson.

“Technology was deemed effective at helping home buyers more efficiently find a home to buy and determine how much they can reasonably afford to borrow, but less effective at setting appropriate expectations among millennials on home prices.”–First American Financial Corp. Chief Economist Mark Fleming.

“With this optimistic outlook, driven in part by the spur in demand expected from the tax cuts, it is surprising that the Fed still expects just three rate hikes next year. We think they are likely to revise up this guidance early next year to show four hikes in 2018.”–Mortgage Bankers Association Chief Economist Mike Fratantoni.

“H.R. 2948 promotes a ‘fair and competitive labor market’ by eliminating barriers to the ability of non-bank lenders–especially small lenders–to compete for talented staff, and allowing MLOs to more easily move to the employer that offers them the best chance to succeed.”–MBA Senior Vice President of Legislative and Political Affairs Bill Killmer, in an MBA letter to House Financial Services Committee leadership in support of legislation that would provide “transitional authority” to originate mortgages for individuals who move from a federally insured institution to a non-bank lender while they work to meet the SAFE Act’s licensing and testing requirements.
 

“The third quarter marks a significant turning point for the CMBS market. With only a few exceptions, since 2008, the balance of commercial and multifamily mortgages held in CMBS has declined each quarter. That years-long trend ended this quarter.”
–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“The ownership qualification period for exclusion of capital gains of a principal residence to five of the past eight years [from the current two of the past five years] would disproportionately penalize growing families and discourage labor mobility. We do not believe this is the public policy outcome intended.”–From an MBA/trade group letter asking senators to leave existing capial gains rules for sale of aprimary residence as is.

“One of the most significant features of the Dodd-Frank Act was the requirement that lenders, during the underwriting process, carefully demonstrate a mortgage borrower’s ability to repay their loan. And while the Qualified Mortgage standard that was developed by the Consumer Financial Protection Bureau was not meant to limit mortgage originations to only loans that meet this standard, the significant potential liability and litigation expenses for violations of the Ability to Repay rule have directed the vast majority of the market towards QM loans that provide safe harbor from potential litigation.”
–MBA Chairman-Elect Chris George, testifying yesterday before a House subcommittee on the need for regulatory relief for mortgage lenders and servicers.

“Make sure you have someone on your team who is tuned into diversity and inclusion and will hold you–and the company–accountable for decision-making. We can’t make better people, but we can help them make better decisions.”–Lissah Taylor Hundley, addressing the MBA Diversity & Inclusion Summit this week in Washington.