MBA Newslinks Archive

“Mortgage application volume typically drops sharply over the holidays. However, this year, as mortgage rates continued their upward climb reaching the highest levels in more than two years, overall application volume fell even more than the holiday slowdown would suggest, dropping 12 percent over the two-week period.”–MBA Chief Economist Mike Fratantoni.

“With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends. Nevertheless, home prices cannot rise faster than incomes and inflation indefinitely.”–David Blitzer, Managing Director & Chairman of the Index Committee with S&P Dow Jones Indices, New York.

“Such a low rate of total satisfaction to be indicative of the decidedly mixed–if not downright depressing–results of this year’s survey. The largest group of respondents, 42 percent, indicated that they are just ‘somewhat satisfied.’ While not actively looking to replace their LOS, their responses indicate these lenders aren’t what you’d call ‘raving fans’ either. Over time we would expect many of these lenders to start to actively look for a new system.”–STRATMOR Senior Partner Matt Lind, on a company survey showing increased lender dissatisfaction with their current loan origination system.

“Rapid home price appreciation and tepid wage growth have combined to erode home affordability during this housing recovery, and the recent uptick in mortgage rates only accelerated that trend in the fourth quarter. The prospect of further interest rate hikes in 2017 will likely cause further deterioration of home affordability next year. Absent a strong resurgence in wage growth, that will put downward pressure on home price appreciation in many local markets.”–Daren Blomquist, senior vice president with ATTOM Data Solutions, Irvine, Calif.

“Mortgage rates increased at least partially as a result of the Federal Reserve’s rate hike and move to a slightly more hawkish stance. Borrowers may have gotten applications into their lender in advance of the FOMC announcement, as most observers anticipated an increase in the Fed’s rate target at the December meeting.”–MBA Chief Economist Mike Fratantoni.

“Cybersecurity regulations issued by only one state this year, will surely lead to additional and potentially divergent cybersecurity regulations issued in a few more states early next year. That pattern will continue and it will create a patchwork of state requirements. Our elected officials should encourage efforts to converge and coordinate with existing cybersecurity requirements. Please help us to balance important consumer protections with this reality. Unilateral action will ultimately lead to multiple standards which have the potential to conflict with each other and produce expensive and divergent results.”–James Bopp, National Correspondent Sales Manager with Platinum Home Mortgage Corp., in testimony yesterday before a New York Assembly Committee on proposed cybersecurity regulations.

“While starts dropped in November, “they continue to provide an important release valve for solid demand in the housing market, but still have much more room for growth.”–Ralph McLaughlin, chief economist with Trulia, San Francisco.

“Strong household formation coupled with further job growth, rising wages and continuing home price appreciation will drive growth in purchase originations in the coming years.”–From the latest MBA Housing and Economic forecast.

“MBA commends the GSEs and FHFA for the thoughtful development process that integrated stakeholder input–such as MBA’s One Mod proposal–to create a modification program that builds on the lessons learned from HAMP. We hope that other government insurers and guarantors use ‘Flex Modification’ as a starting point as they think about their own loss mitigation procedures so that HAMP is eventually replaced by a streamlined, universal loan mod product.”–MBA Senior Vice President of Residential Policy and Member Engagement Pete Mills.

“At this point, the market has already priced in the short term rate increase which is expected from the Federal Open Market Committee today.”–MBA Vice President of Research and Economics Lynn Fisher.