Category: Top National News

Yahoo! Finance, Aug. 21, 2019Citigroup C and Credit Suisse CS have re-entered the risky mortgage loans market or non-qualified mortgage, wherein they provide new home loans to borrowers with poor credit scores. However, per Mike Fratantoni, chief economist with the Mortgage Bankers Association, these non-QM loans are not like the Alt-A/subprime loans that were distributed prior to the housing crash.

National Mortgage Professional, Aug. 21, 2019–Phil HallThis year’s hurricane season is now underway through November, and while there are no storms on the near-term horizon that should raise red flags, a new study by ValuePenguin.com found many homeowners in high-risk states expressed either ignorance or nonchalance regarding the property damage costs of hurricanes.

National Mortgage News, Aug. 21, 2019–Brad Finkelstein (subscription)Trustees are concerned about obtaining proper consents from legacy residential mortgage-backed securities investors in a timely fashion in order to make the switch from Libor to another index, Fitch Ratings said.

Urban Institute, Aug. 20, 2019–Michael NealThe household-owned value of the U.S. housing market is at an all-time high of $26.12 trillion–significantly higher than the pre-crisis peak of $22.68 trillion in 2006. Housing equity and non-HELOC (home equity line of credit) mortgage debt outstanding are also at historic highs. At the same time, the share of homeowners with a mortgage, at 62.9 percent, is at the lowest level since at least 2005.

Wall Street Journal, Aug. 21, 2019–Ben Eisen (subscription)More than a decade after home loans triggered the worst financial crisis in a generation, the strict lending requirements put in place during its aftermath are starting to erode. Home buyers with low credit scores or high debt levels as well as those lacking traditional employment are finding it easier to get credit.

National Mortgage Professional, Aug. 20, 2019–Phil HallA new study published by NDP Analytics has determined that increasing the funding fee on VA home loans could result in fewer servicemembers and veterans becoming homeowners.

National Mortgage News, Aug. 20, 2019–Bonnie Sinnock (subscription)Freddie Mac is replacing a manual form submission process used to correct post-settlement and real estate owned data with new technology.

American Banker, Aug. 20, 2019–Hannah Lang (subscription)The Federal Deposit Insurance Corp. board approved a final rule Tuesday that removes the so-called accounting prong. Last year, the agencies had proposed using fair value accounting as an alternative to the current standard, which financial services firms have also found burdensome.

The Real Deal, Aug. 20, 2019–Rich BockmannThree of the largest real estate investment trusts that buy up residential mortgages and package them into securities have cut their dividends so far this year. The cuts came after the yields on three-month and 10-year treasuries inverted in March for the first time in more than a decade.

Philadelphia Inquirer, Aug. 20, 2019–Joseph N. DiStefanoSantander Bank NA, the U.S. arm of Spain-based multinational lender Banco Santander, will lay off 66 staff at its Villanova mortgage offices this fall, the bank told the Pennsylvania Department of Labor in a federally required WARN Act notice.