Servicing Newslinks Archive

“Profitability continues to be hindered by high costs and low productivity. We expect fixed costs to remain elevated and competitive pressures will continue to hamper production revenues in the winter months. Therefore, mortgage banker profitability will likely remain challenged.”–MBA Vice President of Industry Analysis Marina Walsh.

“MBA believes that the requirements of the CECL standard, which is effective for SEC registrants in 2020, and for all other companies in 2021, will adversely impact the availability, structure and price of credit, with a larger proportion of such impact landing on longer-term loans, such as 30-year single-family residential mortgages, commercial and multifamily mortgages, student and business loans.”–MBA President and CEO Robert Broeksmit, CMB, in a letter to Treasury Secretary Steven Mnuchin to delay a credit loss accounting standard implementation pending a quantitative impact study.

“Reverse mortgages are an important financial tool that, if used properly, can allow the growing number of retirees to age in place. MBA applauds the recent steps FHA has taken to stabilize and improve the HECM program, and policymakers should continue considering ways to insulate the forward program from the volatility in the reverse program.”–MBA President and CEO Robert Broeksmit, CMB, on the FHA 2018 actuarial report.

“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.