The Mortgage Leader, Nov. 29, 2018According to the analysis, losses from the Camp Fire, the most destructive wildfire in the state’s history, are estimated to be between $11 billion and $13 billion. In addition, losses from the Woolsey Fire in Southern California are estimated to be an additional $4 billion to $6 billion.
Category: Top National News
GSE Capital Rule is Hypothetical, But FHFA Gets Earful Anyway
National Mortgage News, Nov. 26, 2018–Hannah Lang (subscription)A risk-based capital plan for Fannie Mae and Freddie Mac is only theoretical as long as the two mortgage giants remain under government control. But the Federal Housing Finance Agency proposal requiring the government-sponsored enterprises to prepare for future crises still elicits strong opinions. (MBA mention)
Altisource Portfolio Solutions Ending Home Buying Business
HousingWire, Nov. 26, 2018–Ben LaneAltisource plans to discontinue its “Buy-Renovate-Lease-Sell” business, which focuses on buying, renovating, leasing and selling single-family homes to real estate investors.
Battered Mortgage Sector May Be Set for a Performance Turnaround
Bloomberg, Nov. 26, 2018–Christopher MaloneyIn terms of excess return versus Treasuries, the performance of mortgage securities since September provided fixed-income investors little to brag about over the holiday dinner table. All of this begs the question–have mortgages cheapened enough for a turnaround?
Borrowers Are Tapping Their Homes for Cash, Even as Rates Rise
Wall Street Journal, Nov. 25, 2018–Ben Eisen, Christina Rexrode (subscription)More than 80% of borrowers who refinanced in the third quarter chose the “cash out” option, withdrawing $14.6 billion in equity out of their homes, according to government-sponsored mortgage corporation Freddie Mac. That is the highest share of cash-out refis since 2007.
Cheat Sheet: Hopes and Hang-Ups on CRA Reform
National Mortgage News, Nov. 25, 2018–Rachel Witkowski, Kate Berry (subscription)Bank regulators have not come out with a formal plan for updating the Community Reinvestment Act, but a preliminary list of questions about the reform effort issued by the Office of the Comptroller of the Currency has produced a treasure trove of public feedback to guide their deliberations.
What if You Could Trade Sweat Equity for a Cash Down Payment and Closing Costs?
Orange County Register, Nov. 24, 2018–Jeff LazersonThis week Freddie Mac gave the go-ahead to unlimited sweat equity to count toward your down payment and closing costs through its enhanced Home Possible Mortgage program.
Feds Significantly Expand Investigation into All-Cash Real Estate Deals
HousingWire, Nov. 20, 2018–Ben LaneTitle insurance companies in 12 of the nation’s largest markets will now have to provide federal authorities with substantial details on all real estate deals of $300,000 or more if the buyer is paying all cash. The requirement comes at the hands of the Treasury Department’s Financial Crimes Enforcement Network.
GSEs Establish Tougher Standards for Green Apartment Loans in 2019
National Real Estate Investor, Nov. 20, 2018–Bendix AndersonMultifamily borrowers will have to do a lot more in 2019 to get the lower interest rates offered by Fannie May and Freddie Mac’s popular “green” lending programs.
‘I Can Be the Bank’: Individual Investors Buy Busted Mortgages
Wall Street Journal, Nov. 20, 2018–Ben Eisen, Cezary Podkul (subscription)A decade after the housing crisis, new risk takers invest in nonperforming loans–often written off by banks–and push the borrowers to start paying on them again.