Bloomberg, Aug. 14, 2019–Janet FreundU.S. department store stocks cratered Wednesday after Macy’s cut its annual outlook, fueling the worst trading day for the index since the last time the Bloomingdale’s parent slashed its forecasts in January.
Category: Top National News
FHA’s Distressed Asset Stabilization Program Should Be Improved, Not Abandoned
Urban Institute, Aug. 14, 2019–Laurie Goodman, Edward Golding, Jim ParrottThe authors argue that the DASP program is not fatally flawed; rather, DASP is a powerful tool that has helped thousands of families avoid foreclosure and has reduced stress on the FHA’s insurance fund, making it easier for FHA to keep premiums low to ensure broad access to homeownership.
U.S. Mortgage Debt Hits Record, Eclipsing 2008 Peak
Wall Street Journal, Aug. 13, 2019–Harriet Torry (subscription)Mortgage balances rose by $162 billion in the second quarter to $9.406 trillion, surpassing the high of $9.294 trillion in the third quarter of 2008, the Federal Reserve Bank of New York said Tuesday.
U.S. Will Back More Condominium Loans Aimed at First-Time Buyers
Wall Street Journal, Aug. 14, 2019–Laura Kusisto (subscription)The move, to be announced Wednesday by the Federal Housing Administration, could help revive the entry-level condo market for first-time buyers because FHA-backed loans require only a 3.5% down payment and lower credit score than conventional loans.
Reform Plan Shouldn’t Lead to Ratings Cut in the Near Term: Fitch
National Mortgage News, Aug. 13, 2019–Brad Finkelstein (subscription)Fannie Mae and Freddie Mac’s corporate debt ratings shouldn’t be downgraded in the near term as a result of the Treasury Department’s to-be-released government-sponsored enterprise reform plan, Fitch Ratings said.
A Danish Bank is Offering Mortgage Rates with Negative Interest Rates–Why You Shouldn’t Wish for that to Happen in the U.S.
MarketWatch, Aug. 12, 2019–Jacob PassyPlaces like Europe and Japan have another economic hurdle that’s made negative rates possible: Their populations are aging, which means their labor force is shrinking. “That’s an enormous headwind on economic growth,” said Michael Fratantoni, chief economist at the Mortgage Bankers Association, a trade group that represents the home-loan industry. “That keeps interest rates extraordinarily low.”
New Villain in Battle over CFPB Mortgage Rule: Appendix Q
American Banker, Aug. 12, 2019–Kate Berry (subscription)Mortgage lenders are urging the Consumer Financial Protection Bureau to overhaul a set of little-known guidelines for how they document a borrower’s creditworthiness.
Millennials Drive Mortgage Refinance Boom, and Lenders are Scrambling
CNBC, Aug. 9, 2019–Diana OlickMortgage interest rates have been falling since May, so borrowers, especially millennials, are rushing to refinance. Applications to refinance were up a stunning 116% this week compared with a year ago, according to the Mortgage Bankers Association. That has lenders scrambling to keep up.
HUD Expands Section 220 Program to All Opportunity Zones
National Mortgage Professional, Aug. 9, 2019–Phil HallFHA’s Section 220 Program insures lenders against loss on mortgage default and has been used for urban rental housing in areas targeted for overall revitalization. HUD’s announcement expands eligibility of mortgages insured under this program to all 8,764 Opportunity Zone localities, including those in rural areas.
Homeowners Rush to Refinance, Thanks to Falling Yields
Wall Street Journal, Aug 8, 2019–Matt Wirz, Christina Rexrode, Rachel Louise Ensign (subscription)Falling bond yields have pushed mortgage rates to their lowest level in nearly three years, spurring a rush by homeowners to refinance.