Forbes, Sept. 25, 2019–Brenda RichardsonAfter steadily increasing since late 2016, mortgage fraud risk plummeted by the end of the second quarter of 2019 thanks to lower interest rates that ushered in an influx of low-risk refinance transactions, according to a new report by data and analytics provider CoreLogic. The market also benefited from homes being bought by iBuyers.
Category: Top National News
New York Fed Boosts Size of Repurchase Operations
Wall Street Journal, Sept. 25, 2015–Daniel Kruger (subscription)The Federal Reserve Bank of New York said Wednesday it would increase the size of scheduled operations to provide short-term cash loans to financial firms.
Fitch: End of QM Patch Could Drive RMBS Losses
HousingWire, Sept. 25, 2019–Kelsey RamirezHigh loan-to-value loans could drive losses in residential mortgage backed securities as the Qualified Mortgage Patch expires, according to a new report from Fitch Ratings.
Commercial Delinquencies Should Remain Low Despite Economic Worry: MBA
National Mortgage News, Sept. 24, 2019–Brad Finkelstein (subscription)Commercial and multifamily mortgage delinquency rates should stay at historically low levels in the near future even as economic uncertainty over trade affects U.S. businesses, according to the Mortgage Bankers Association.
5 Changes Lenders Want from CFPB’s Rewrite of QM Rule
American Banker, Sept. 24, 2019–Hannah Lang (subscription)The effects of that rule, which requires lenders to verify borrowers’ ability to repay and provides legal protection for “qualified mortgages” with low debt-to-income ratios, so far has been limited, because of the GSE “patch.” (MBA mention)
Banks Counting on GSE Reform to Stop Mortgage Share Erosion
National Mortgage News, Sept. 24, 2019–Andy Peters (subscription)Banks have been ceding market share in home lending to nonbank lenders for years, but that could change under a Treasury Department proposal to remove Fannie Mae and Freddie Mac from conservatorship.
Average Mortgage Payments Slide for First Time in Years
The Mortgage Reports, Sept. 24, 2019–Aly J. YaleHome prices might be up, but American mortgage payments are actually falling. In fact, according to new data, the average monthly mortgage payment has dipped over 6 percent in just the last year.
Repo-Market Tumult Raises Concerns About New Benchmark Rate
Wall Street Journal, Sept. 23, 2019–Daniel Kruger, Vipal Monga (subscription)The tumult in the market for short-term cash loans highlights some analysts’ concerns about the Secured Overnight Financing Rate, the Federal Reserve’s proposed replacement for the troubled London Interbank Offered Rate, or LIBOR.
How Supreme Court Could Decide CFPB Constitutionality Question
National Mortgage News, Sept. 23, 2019–Kate Berry (subscription)A Supreme Court review of the Consumer Financial Protection Bureau’s leadership structure looks even more likely now that the Department of Justice and the agency’s own director have agreed that that structure is unconstitutional.
Fannie, Freddie Recapitalization Unlikely Before 2020 Election: KBW
National Mortgage News, Sept. 23, 2019–Brad Finkelstein (subscription)Recapitalization of Fannie Mae and Freddie Mac prior to the 2020 election is unlikely even if the net worth sweep ends, according to a Keefe, Bruyette & Woods report.