MBA Newslinks Archive

“Credit availability moved lower in September, as tightening in the government index offset an increase in conventional credit availability. The decline in government credit was driven by fewer streamline offerings as well as a decline in loan programs with lower credit requirements.”–Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting.

“Lack of clear guidance in these areas in the proposed regulations will result in inconsistency, and therefore confusion for taxpayers who ‘need certainty in determining whether their trade or business generates income that is eligible for the section 199A deduction. Moreover, given that mortgage banking companies organized as pass-through entities compete directly in the real estate finance market with C corporations, the lack of clarifying guidance will result in a competitive imbalance that is squarely inconsistent with the very reason that section 199A was enacted.”–MBA President and CEO Robert Broeksmit, CMB, in a letter to Treasury/IRS regarding a proposed rulemaking clarifying the definition of business income deductions under Section 199A of the Internal Revenue Code.

“Short-term rates have been increasing but long-term rates have held steady, which should not pose too much of a headwind to home purchase activity, especially given the potential demand from demographic factors.”–MBA Associate Vice President of Economic and Industry Forecasting Joel Kan.

“Make no mistake, Proposition 10 will not lead to more affordable housing. Instead, it will remove any incentive to develop new affordable housing units and lead to higher housing costs in California’s already expensive market. This will harm the entire real estate finance industry in general and especially multifamily mortgage lenders. Moreover, if Proposition 10 succeeds, it is certain to be emulated by other states.”–From an MBA Mortgage Action Alliance Call to Action on Proposition 10, a controversial California ballot initiative.

“Hurricanes, and especially the flooding associated with these natural disasters, create the potential and opportunity for significant misrepresentation of collateral condition.”–First American Chief Economist Mark Fleming.

“MBA would like to commend the House for passing last evening–by voice vote–H.R. 6737, which addresses an unintended consequence from the enactment of Title III of S.2155, ‘Protecting Veterans from Predatory Lending,’ by allowing VA-guaranteed refinance loans to remain eligible for pooling in Ginnie Mae securities. More broadly, it will help to ensure the confidence in the VA home loan program that is necessary for it to remain a viable choice for the nation’s service members and veterans.”–Mortgage Bankers Association President and CEO Robert Broeksmit, CMB.

“The net impact of strong economic growth and only somewhat higher mortgage rates should remain a positive environment for the home purchase market, while continuing to winnow refinance demand.”–MBA Chief Economist Mike Fratantoni.

“People love living on barrier islands. They have a great ocean view. But they’re also right in the path of hurricanes. This is greatly increasing companies’ risk profile.”–Howard Botts, Chief Scientist with CoreLogic, Irvine, Calif.

“The quality of business we do today exceeds anything in my 36 years in this industry–any time in this industry. We are doing things better today than we’ve ever done them, and quality control professionals are the ones who made this happen.”–MBA Chairman-Elect Chris George, addressing the MBA Risk Management,Quality Assurance and Fraud Prevention Forum.

“It varies by market, but we’re hearing that buyers are being more selective and sellers are becoming more pragmatic. That dynamic could bring inventory levels up, especially in the most overheated markets, where we expect to see the clearest signs of equilibrium returning.” –RE/MAX CEO Adam Contos.