Servicing Newslinks Archive

“While the Federal Reserve is expected to increase short-term rates further, 30-year mortgage rates should rise only modestly from here. We are seeing some deceleration in the rate of home price growth, but believe this is a healthy pause for the market, as it will allow income growth to catch up to the recent run-up in home values.”–MBA Chief Economist Mike Fratantoni.

“In many residential settings, PACE loans often have little connection to the promised energy savings either due to overzealous or deceptive marketing, or consumer usage patterns that undermine the expected cost savings. While these problems exist in the home improvement market generally, consumers that use home improvement lending products benefit from consumer protections that do not apply to PACE loans.”–From an MBA/trade group letter urging the Bureau of Consumer Financial Protection to implement rulemakings governing Property Assessed Clean Energy loans.

“Lack of clear guidance in these areas in the proposed regulations will result in inconsistency, and therefore confusion for taxpayers who ‘need certainty in determining whether their trade or business generates income that is eligible for the section 199A deduction. Moreover, given that mortgage banking companies organized as pass-through entities compete directly in the real estate finance market with C corporations, the lack of clarifying guidance will result in a competitive imbalance that is squarely inconsistent with the very reason that section 199A was enacted.”–MBA President and CEO Robert Broeksmit, CMB, in a letter to Treasury/IRS regarding a proposed rulemaking clarifying the definition of business income deductions under Section 199A of the Internal Revenue Code.

“The balance of mortgage debt on commercial and multifamily properties grew faster during the first half of 2018 than during any other first half since 2007. The four major investor groups all increased their holdings, and multifamily mortgage debt outstanding topped $1.3 trillion for the first time. Strong property fundamentals and values, coupled with still-low mortgage rates and strong loan performance, are all supporting the market.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“The quality of business we do today exceeds anything in my 36 years in this industry–any time in this industry. We are doing things better today than we’ve ever done them, and quality control professionals are the ones who made this happen.”–MBA Chairman-Elect Chris George, addressing the MBA Risk Management,Quality Assurance and Fraud Prevention Forum.

“A law or regulation has the force and effect of law. Unlike a law or regulation, supervisory guidance does not have the force and effect of law, and the agencies do not take enforcement actions based on supervisory guidance. Rather, supervisory guidance outlines the agencies’ supervisory expectations or priorities and articulates the agencies’ general views regarding appropriate practices for a given subject area.”–From a statement by five federal agencies clarifying the role of regulatory guidance.

“Housing is simply too important to our national economy and our local communities to risk disruption of the system by which it is financed.”–From an “open letter” by MBA and other trade groups to the Trump Administration and Congress urging action on secondary mortgage market reform.

“The delinquency rate for loans held on banks’ balance sheets is the lowest in the series history. Strong property fundamentals and values, coupled with low Interest rates and ample financing options, all continue to support commercial real estate owners and their abilities to repay their mortgages.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“The report shows welcome engagement from Treasury and directs the government’s regulatory priorities and the future of the mortgage market. It’s very gratifying to see many long-standing MBA priorities reflected in the report, and we look forward to working with the relevant stakeholders in implementating these recommendations.”–Justin Wiseman, MBA Associate Vice President and Regulatory Counsel, on a recent Treasury Department report on the regulatory landscape that largely incorporates MBA recommendations to remove technology barriers to improve efficiency, lower costs and enhance customer experience.

“We continue to see improvement in the overall mortgage delinquency rate as the impact of the hurricanes from one year ago lessens, particularly for conventional loans.”–Marina Walsh, MBA Vice President of Industry Analysis.