MBA Newslinks Archive

“Production profitability improved in the second quarter as volume picked up with the spring home buying season and a slight drop in mortgage rates. Production revenues declined due to increased competition, but that was more than offset by per loan expenses dropping to levels comparable with other recent quarters of similar volume.”–MBA Vice President of Industry Analysis Marina Walsh.

“FHFA’s effort to expand the use of alternative credit scoring models is a critical component to reversing the steady decline in homeownership particularly for low- and moderate-income as well as minority consumers.”–From an MBA/trade group letter asking the Federal Housing Finance Agency to update credit risk scoring models used by Fannie Mae and Freddie Mac.

“The current softening in rents is also driven by continued new deliveries, which is expected to peak in the third quarter.”–From a JLL report on multifamily investment, cautioning that volume continues to fall from a year ago.

“The employment outlook continues to support loan performance. Monthly job growth topped 200,000 jobs in June for the fourth time in the first six months of the year. Job growth in the month of July also topped 200,000. Possible factors that could influence a directional change include rising loan-to-value and debt-to-income ratios for certain product types, as affordability is stretched by tight inventory and rising home prices, and normal loan aging.”–MBA Vice President of Industry Analysis Marina Walsh.

“The market is taking less than half of the credit risk that it took in 2001, a period of reasonable credit standards, and less than a third of the credit risk taken in 2006, a period where we all agree credit standards were too lax.”–Laurie Goodman, co-director of the Urban Institute Housing Policy Finance Center.

“A strong appetite for jumbo loans and a highly competitive jumbo market has led to increased availability and lower pricing of jumbo loans over the past few years.”–Joel Kan, MBA Associate Vice President of Industry Surveys and Forecasting.

“The prospect for future homeownership demand looks hopeful, as more households increase their educational attainment level and thus their prospect for higher income.”–First American Financial Corp. Chief Economist Mark Fleming.

“The market has been shifting from refis to purchases, but we saw a pick-up in refinancing with lower rates.”–Ellie Mae President and CEO Jonathan Corr.

“There is a pullback in core opportunities in the market right now. Investors are being selective, looking at longer hold periods and seeking new strategies as a means to increase real estate assets under management and mitigate current market challenges.”–JLL Capital Markets Americas President Jonathan Geanakos.

“As more and more Millennials age into household formation, the pace of housing starts will need to not only meet but exceed the growth in new households so that the housing inventory shortage doesn’t increase further. More home building is needed, otherwise nominal home prices will only go one way–up.”–Mark Fleming, chief economist with First American Financial Corp., Santa Ana, Calif.