MBA Newslinks Archive

“Borrowers are still tapping equity at less than a third of the rate they were back in 2005, and they’re doing so more prudently.”–Black Knight Data & Analytics Executive Vice President Ben Graboske.

“There is a shift from transaction-centricity to customer centricity in mortgage lending. Customers want to feel like they are more than a series of transactions. They expect more from their lenders and they want greater engagement with loan officers.” –Joey McDuffee, head of sales and marketing with Wipro Ltd., Palmetto Bay, Fla.

“A lot of first-time buyers are still taking a wait-and-see attitude because of rates. But despite a ramp-up on the part of home builders, we’re just not seeing the inventory that’s needed to sustain the market. Inventory is low everywhere, which suggests the home purchase market forecast could be a bit aggressive.”–MBA Chief Economist Mike Fratantoni.

“Regulatory uncertainty, combined with heightened enforcement risk have forced many responsible lenders to reconsider their ability to lend to the full extent of the credit box. These decisions ultimately impact the consumer, and often disproportionately impact low-to-moderate income borrowers, minorities and first-time homebuyers.”–MBA Chairman-Elect J. David Motley, CMB, in testimony yesterday before a House subcommittee.

“Our industry takes risks everyday developing new businesses, providing loans, expanding communities. Technology is the next logical risk. We must evolve or become obsolete. We must rethink our business practices and our business models to adapt to the age of constant digital connectivity. As we restructure, technologies should be developed with the flexibility to maintain consumers’ individual choice.”MBA Chairman Rodrigo Lopez, CMB.

“Single-family rentals should continue to yield strong returns in many parts of the country going forward given the market undercurrents of low rent-ready housing inventory and low homeownership rates.”–Daren Blomquist, senior vice president with ATTOM Data Solutions, Irvine, Calif.

“Low inventory, strong demand and tough competition will be the defining characteristics of this year’s home shopping season. Even though interest rates are rising, buyers are eager to start their home search.”–Zillow Chief Economist Svenja Gudell.

“MBA believes that the mortgage servicing transfer provisions should receive more discussion than others in the proposal as they are far more complicated and technical. Because of their far-reaching implications for the State’s consumers and mortgage market, MBA urges that they be withdrawn from this rule, segregated by DLLR into a separate rulemaking and considered independently.”–MBA Senior Vice President of Residential Policy and Member Engagement Pete Mills, in a letter to Maryland regulatory officials on a proposed mortgage servicing transfer rule that potentially interferes with existing federal regulations.

“Rapid increases in interest rates in the last two months of 2016 slowed mortgage activity in the fourth quarter, driving a significant decrease in loan production profits. Mortgage lenders reported a combination of both lower revenues and higher expenses. On the revenue side, secondary marketing income dropped as mortgage lenders wrestled with less favorable pricing and pipeline challenges. At the same time, production expenses per loan rose as fixed costs were spread over fewer loans.”–MBA Vice President of Industry Analysis Marina Walsh.

“Because debt is ‘stickier’ and outstanding loan balances don’t automatically adjust to changes in prices, mortgage debt outstanding remained stable. In the years since, prices bounced back and now exceed their pre-recession levels, while mortgage debt outstanding–which hadn’t declined–rose at a much slower pace. The ratio between the two is now back to where it was before the recession.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.