Servicing Newslinks Archive

“Despite the small uptick this quarter, the healthy economy is overall supporting low mortgage delinquencies and foreclosure inventories. Unemployment is at its lowest levels since 1969, wages have grown 3.1 percent year-over-year–the biggest jump in almost a decade–and job growth is averaging over 212,000 jobs per month thus far.”–MBA Vice President of Industry Analysis Marina Walsh.

“It now takes 23.6 percent of the median income to make monthly payments on the average-priced home, making housing the least affordable it’s been in nearly a decade. While still better than the 1995-2003 average of 25.1 percent, we’re close to a tipping point.”–Ben Graboske, executive vice president of Black Knight’s Data & Analytics division.

“A streamlined process could be beneficial to both lenders and RHS. However, we are concerned that this proposal, as drafted, will result in increased losses for lenders on properties that take a significant time to liquidate following foreclosure sale. Whether or not this concern is a reality depends largely in part on the valuation model employed. Unfortunately, this proposal does not provide enough detail on the valuation model to assuage these concerns.”–MBA Senior Vice President for Public Policy and Industry Relations Stephen O’Connor, an an MBA letter to the Rural Housing Service on its proposed rule to revised its loss-claim and loss-mitigation procedures.

“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.