Servicing Newslinks Archive

“The reduction in the premium is a result of our industry’s and FHA’s shared commitment to quality underwriting, and consumers will benefit as result. Reducing the cost of FHA loans benefits borrowers, but other changes to reduce uncertainty for lenders would be required to truly invigorate the FHA program.”–MBA President and CEO David Stevens, CMB.

“At nearly a six to one margin, data indicate that homeowners are avoiding foreclosure and are receiving mortgage assistance. This metric is important as it shows the breadth of solutions available to at-risk homeowners at the time of first notice of default that are alternatives to foreclosure.”–HOPE NOW Executive Director Eric Selk.

“MBA commends the GSEs and FHFA for the thoughtful development process that integrated stakeholder input–such as MBA’s One Mod proposal–to create a modification program that builds on the lessons learned from HAMP. We hope that other government insurers and guarantors use ‘Flex Modification’ as a starting point as they think about their own loss mitigation procedures so that HAMP is eventually replaced by a streamlined, universal loan mod product.”–MBA Senior Vice President of Residential Policy and Member Engagement Pete Mills.

“An increase in production volume and slight decrease in expenses in the third quarter kept production profits relatively stable. These profits would have been even higher were it not for a decline in net secondary marketing income, primarily income related to mortgage servicing rights.”–MBA Vice President of Industry Analysis Marina Walsh.

“If Congress or the administration wants to undertake comprehensive tax reform, and the president-elect and congressional leadership have clearly indicated that tax reform is a priority, a wide range of issues will be raised–including the mortgage interest deduction and other real estate provisions. But it would be a mistake to do anything that has the potential to hurt homeowners and the housing market that contributes so much to the national economy.”–MBA President and CEO David Stevens, CMB.

“While the delinquency numbers continue to drop–under 1.5 million in September–we are still very focused on markets where recovery has been slower and still need assistance.”–HOPE NOW Executive Director Eric Selk.

“An important subtext to this report is the continued volatility in the HECM book of business, which this year turned negative, dragging down the overall value of the MMIF. Given the importance of FHA to low and moderate income and first time homebuyers, the next administration may want to look at accounting for the two programs individually in order to isolate the critically important forward book from the wild swings of the HECM fund.”–MBA President and CEO David Stevens, CMB, on HUD’s annual report on the health of the FHA Mutual Mortgage Insurance fund.

“Mortgage delinquency and foreclosure rates continued to decrease in the third quarter as sustained job growth and low unemployment helped more borrowers stay current with their mortgage payments.”–MBA Vice President of Industry Analysis Marina Walsh.

“Right now, it takes 20 percent of the median monthly income to cover monthly payments on the median-priced home, which is well below historical norms. A 50 BPS increase in interest rates would be equivalent to a $17,000 jump in the average home price, and bring that ratio to 21.5 percent.”
–Black Knight Data & Analytics Vice President Ben Graboske.

“At this point last year, many of you were experiencing real and legitimate growing pains around the new rule. But we have continued to work closely with the Mortgage Bankers Association and other stakeholders to smooth the implementation process. We have clarified and addressed many issues over the past year, and we have been working with investors, due diligence firms and the rating agencies to help make sure that any minor or technical errors made on the forms do not pose unnecessary obstacles to purchasing the loans.”–Consumer Financial Protection Bureau Director Richard Cordray, speaking at the recent MBA Annual Convention & Expo.