National Mortgage News, Apr. 2, 2018–Victoria Finkle (subscription)When draft Senate legislation–based on talks between Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va.–leaked back in January, observers had warned the effort would need to quickly pick up steam in order to have a prayer of enactment ahead of the midterm elections this November. Instead, momentum has been moving in the wrong direction.
Category: Top National News
Adjustable-Rate Mortgage Applications Have Lower Fraud Risk
National Mortgage News, Apr. 2, 2018–Brad Finkelstein (subscription)There is now less fraud risk associated with adjustable-rate mortgage applications and this will offset some of the higher hazard associated with a purchase market, said First American Financial Corp.
This Booming Sector Puts Mortgage Industy at Risk Say Academics
Mortgage Professional America, Apr. 3, 2018–Steve RandallThe paper, “Liquidity Crises in the Mortgage Market,” highlights that many nonbank lenders failed during the housing bust but the sector has been growing since as the result of banks and others pulling back their exposure and tightening underwriting conditions.
Cash-Out Mortgage Refis are Back. Will Homes Become ATMs Again?
MarketWatch, Mar. 30, 2018–Andrea RiquierAs of the fourth quarter of last year, the share of all refinances that were cash-outs rose to the highest since 2008, according to Freddie Mac data. Rates have churned higher since the presidential election in late 2016, though they spent much of 2017 reversing the immediate post-election surge.
Watchdog: FHA Incorrectly Insured $1.9 Billion in Mortgages in 2016
HousingWire, Mar. 30, 2018–Ben LaneThe report, published recently by the HUD Office of Inspector General, found that in 2016, the FHA insured an estimated 9,507 borrowers who were actually ineligible for FHA insurance because the borrowers had either delinquent federal debt or who were subject to federal administrative offset for delinquent child support.
Why Consumer Protection Regulation is Necessary–But Often Useless
HousingWire, Mar. 30, 2018–Sarah WheelerThe TILA-RESPA Integrated Disclosure rule was conceived as part of the Consumer Financial Protection Bureau’s noble goal of giving consumers information about their total loan costs before they signed documents that bound them in a 30-year contract. But for all the good intentions behind this rule, it’s just not practical.
Mall Vacancies Reach Six-Year High as Retail Slump Batters Local Economies
Wall Street Journal, Apr. 1, 2018–Peter Grant (subscription)Empty space in regional shopping malls reached a six-year high in the first quarter, adding further stress to regions being hit by a retail earthquake that is shaking up the job market across the U.S.
Barclays Agrees to Pay $2 Billion to Settle U.S. Mortgage Suit Claims
Bloomberg News, Mar. 29, 2018The U.S. Department of Justice has reached an agreement with Barclays Capital and affiliates to settle a civil action filed in 2016 related to the mis-selling of residential mortgage-backed securities.
House-Flipper Opendoor Raising Funds at $2 Billion Valuation
Wall Street Journal, Mar. 29, 2018–Rolfe Winkler (subscription)Open Door Labs Inc., which buys and resells houses, is in talks with investors to raise at least $200 million at a roughly $2 billion valuation, a deal that would help it purchase more homes and expand to new cities.
Fraud Less Likely On ARMs Than Fixed-Rate Loans
Mortgage Daily, Mar. 29, 2018First American Financial Corp. said risk of fraud on home-loan applications says that risk on loans with adjustable rates is lower than on fixed-rate mortgages. The report indicated a year-over-year rise in overall risk.