MBA Newslinks Archive

“If and when interest rates do rise, likely occurring by the end of 2015, it will be timed with a decrease in real estate market activity typical through the fall and winter seasons. This unfortunate pairing will most likely cause a slowdown in price growth for most markets, which already seems to be in motion across much of the country.”
–Alex Villacorta, vice president of research and analytics with Clear Capital, Reno, Nev.

“Even in the unlikely event that income growth greatly outpaces rent gains, the number of severely cost-burdened renters will remain near current record levels.” 
–Christopher Herbert, managing director of the Joint Center for Housing Studies at Harvard University.

“The financial crisis had a big impact on the way the mortgage industry approaches quality management. It created the impetus to dramatically change how the industry thinks about quality. Regulators and investors are now looking for banks and other lenders to have comprehensive and detailed quality programs in place.”
–Jeffrey Hulett, managing director with KPMG LLP, Tysons Corner, Va.

“MBA believes the Know Before You Owe rule will make the mortgage process better for consumers. However, as the survey shows, implementation has proven far more difficult than both industry and the CFPB anticipated due in large measure to the complexity of the technology and systems that have put in place over the years and the challenges of integrating separate systems across the industry. There also continue to be reports that some vendors have not delivered systems in working shape. These issues are not isolated, as a significant proportion of the industry is concerned that their customers are at risk of failing to close or incurring additional costs in the first few months following the October 3 effective date.”
–MBA Senior Vice President Residential Policy and Member Engagement Pete Mills.

“Converting the current test into an on-going obligation could result in current long term members leaving the System, many of which are in small and rural markets, thereby reducing access to capital for home mortgage lending. It also risks undermining member confidence in the System, forcing current members to consider the risk that they may one day find themselves on the wrong side of an arbitrary requirement.”  
–From an MBA/trade group letter to House leaders, urging them to reject a proposed Federal Housing Finance Agency rule on Federal Home Loan Bank System membership.

“Current homeowner purchases are supporting the housing market. Metrics such as the sales-to-list price ratio show a strong housing market, particularly in western states. ”
–Tom Popik, research director for Campbell Surveys.

“When you’re in a bubble, you never know it. But, if you pick the strong private equity sponsors and the good locations, and do your homework on the underwriting, you’re better prepared if there is some kind of shock to the system.”
–Matt Galligan, president of CIT Real Estate Finance, New York.

“Florida has some of the most improving housing markets in the country, largely a reflection of more borrowers becoming current on their mortgage payments as the local employment picture improves and house prices rebound. However, we’ve started to see these housing markets turn around, especially in Pennsylvania, Connecticut, New Hampshire, Vermont and Maine.”
–Freddie Mac Chief Economist Len Kiefer.

“We saw significant rate volatility last week surrounding the Federal Open Market Committee meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance.”
–MBA Chief Economist Mike Fratantoni. 

“Driven by increasing property values, improving property fundamentals and still low interest rates, commercial and multifamily lending and borrowing continued its strong pace in the second quarter.” –MBA Vice President of Commercial Real Estate Research Jamie Woodwell.