Mortage News

• FHA is Just Being Greedy

  Today’s FHA stats will blow your mind. One of which is the fact that their MMI fund is literally overflowing. So why won’t the lower their MI to the consumer? Regardless of the answer, it needs to be done. The answer to this question and more is answered in an interview with David Stevens that […]

  The post FHA is Just Being Greedy appeared first on National Real Estate Post.

• Pending Home Sales Decline Unexpectedly

  It seemed safe to say, even before the National Association of Realtors® (NAR) released the pending home sale numbers for April, that some analyst somewhere would be able to say, "I told you so." Trading Economics had a +0.8 consensus estimate while Econoday's consensus of 2.0 percent was for growth predictions ranging from 0.8 to 5.0 percent.
  
  Guess what, everybody was wrong. Very wrong
  
  NAR's Pending Home Sale Index (PHSI), which is based on signed contracts to purchase existing homes, dropped 4.4 percent from its  March level to 106.2 in April, very close to the 100 benchmark set 20 years earlier. Year-over-year, signings jumped 51.7 percent compared to April 2020 when pandemic-related shutdowns brought sales to an all-time low. The drop in the PHSI does not bode well for existing home sales over the next few months. Those sales have fallen for the last two months.

• Non-Government Loans See Jump in Forbearances

  The forbearance numbers increased again over the past week although Black Knight, in its weekly report, said these mid- to late-month upticks are becoming common. The number of mortgages in active plans rose by 16,000 or 0.73 percent. The number of Fannie Mae and Freddie Mac loans in forbearance declined by 1,000 but that was offset by an increase of 2,000 among loans serviced for FHA and the VA and a 15,000 loan rise (2.5 percent) in forbearances among portfolio-held and privately securitized mortgages. As of May 25, there were a total of 2.195 million mortgage loans remaining in forbearance plans, 4.1 percent of all first mortgages being serviced. There were 682,000 GSE loans, 887,000 VA and FHA loans and 625,000 loans serviced for bank portfolio or private label security investors.

   

• 83% of Zillow Surfers Don’t Want to Buy a Home

  Yep. 83% of those that spend time on Zillow have no intention of buying. This plus other interesting Zillow stats on today’s show. Did you know that 45% of Zillow surfers have admitted to touring properties they found on Zillow with absolutely no intention of buying. It’s an interesting show this morning for sure. So […]

  The post 83% of Zillow Surfers Don’t Want to Buy a Home appeared first on National Real Estate Post.

• Freddie Mac Business Activity Slowed in April

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 13.2 percent in April compared to a 27.2 percent gain in March. The portfolio balance at the end of the period was $2.785 trillion compared to $2.927 trillion the prior month and $2.434 trillion a year earlier. Purchases and Issuances totaled $121.668 billion, and Sales were ($1.761) billion. The March  numbers were $142.465 billion and ($.785) billion, respectively. Single-family refinance loan purchase and guarantee volume was $82.9 billion in April compared to $103.3 billion in March, representing a 72 percent share of total single-family mortgage portfolio purchases and issuances, down from 76 percent the previous month.

   

• June 5 Fannie Low Income Refi Rollout

  The new Fannie Mae Low Income refinance program rolls out for everyone across the country. The question is, will Lenders embrace it? It’s a pretty risky loan. What’s more is, if a lender chooses not to fund these loans are they then subject to potential violations? Is this a damned if you do, damned if […]

  The post June 5 Fannie Low Income Refi Rollout appeared first on National Real Estate Post.

• New Home Sales in April Approached1 Million Units, Just Missing Expectations

  Sales of newly constructed homes gave back some of their March gains last month, declining 5.9 percent to a seasonally adjusted annual rate of 863,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development.  A surge in March had taken sales to a 1.021 million unit rate, a 20.7 percent gain, but those number also lost some luster. That estimate was downgraded to 917,000 units in Tuesday's report. April's rate of sales was 48.3 percent higher than the 582,000 unit estimate in April 2020, when the nation was largely shut down by the COVID-19 pandemic. The rate of new home sales was much lower than predicted. Econoday analysts had forecast a rate between 915,000 and 1.04 million units. Their consensus was 955,000.

   

• Home Price Gains Continue to Break Records

  The superlatives are getting tired - historic, record setting - but they have to come into play again with the March home price gains. A spokesperson for S&P CoreLogic Case-Shiller called the annual gains in those indices the highest in 15 years while the Federal Housing Finance Agency (FHFA) said the growth in its data was more than twice that posted a year earlier. The Case-Shiller National Home Price Index increased at an annual rate of 13.2 percent in March, 1.2 point higher than the annual rate in February. The 10-City Composite Index rose 12.8 percent compared to 11.7 the prior month while the increase in the 20-City Composite was 13.3 percent, up from 12.0 percent. On a month-over-month basis, the National Index rose 1.5 percent on a seasonally adjusted basis and 2.0 percent unadjusted. The 10-City and 20-City Composites posted increases of 2.0 percent and 2.2 percent respectively before adjustment and 1.4 percent and 1.6 percent afterward. All 20 cities had monthly gains, both before and after seasonal adjustments.

• Refinance Activity Pulls Back as Rates Move Higher

  After three weeks of gains, refinancing activity fell last week, pulling overall mortgage volume lower. The Mortgage Bankers Association (MBA) says its Market Composite Index, a measure of mortgage loan application volume, decreased 4.2 percent on a seasonally adjusted basis during the week ended May 21 and was down 4.0 percent from one week earlier. The Refinance Index dropped 7 percent from the previous week and was 9 percent lower year-over-year. Refinancing's share of mortgage applications decreased to 61.4 percent of total applications from 63.3 percent during the week ended May 14. . The seasonally adjusted Purchase Index gained 2 percent compared to the previous week. On an unadjusted basis it was 1 percent higher week-over-week but lost 4 percent compared to the same period in 2020.

   

   

• NAR Sees Housing Inventory Increasing

  It’s all about inventory these days as we all know. Well, NAR sees inventory coming on the market soon. Why, COVID vaccines on the rise and possibly foreclosures on homes that exhaust their forbearance terms. Not to mention we’re now moving into the height of summer. Could it be the case? We’ll have to wait […]

  The post NAR Sees Housing Inventory Increasing appeared first on National Real Estate Post.

• Looking for Affordable Housing? UI Says Look to Homeownership

  A recent policy brief from the Urban Institute (UI) suggests a radical but common-sense solution for achieving affordable housing - homeownership. UI analyst Mike Loftin says there is no shortage of other policy proposals to address the housing problem - more federal investment in building public housing, subsidies to builders of affordable apartments, dramatic increases in rent vouchers - but owning one's own home, he says, is frequently more affordable than renting. There is a widespread idea that homeownership is for people who achieve some arbitrary level of financial success and not "appropriate" for people who are still on their path to financial security which may explain why government efforts toward affordable housing narrowly focus on the rental market.

   

• Existing Home Sales Post Third Monthly Loss in April

  Existing home sales posted their third monthly loss in April, falling 2.7 percent compared to sales in March. The National Association of Realtors® (NAR) said seasonally adjusted sales of single-family homes, townhouses, condominiums, and cooperative apartments were at a rate of 5.85 million units compared to 6.01 million the prior month. The annual rate has declined from 6.66 million in January, the last time sales were up. April's rate was 33.9 percent higher than the 4.37 million pace in April 2020, but that was amid COVID-19 related business closures. Sales came in below even the lowest estimate (5.9 million) of analysts polled by Econoday. Their consensus was for a slight month-over-month uptick to a rate of 6.085 million units.
  

• Purchase Business to Jump 16% Says MBA

  It’s official. The best job to have in the USA… no.. wait.. in the world, is to be an American mortgage loan originator. According to MBA, purchase business is projected to increase by 16%. This on top of the fact that mortgage refinance business doesn’t look like it’s going to stop – EVER! There’s never […]

  The post Purchase Business to Jump 16% Says MBA appeared first on National Real Estate Post.

• Housing Outlook Facing More Uncertainty

  Fannie Mae upwardly revised its GDP forecast for the year from 6.8 percent to 7.0 percent in its May report on economic development. The company's economists say first quarter growth was stronger than expected and the outlook for near-term consumer spending has improved. They have, however, revised their 2022 growth forecast down 0.2 point to 2.8 percent.

  They note that supply chain disruptions, labor scarcity, and inflationary pressures are increasing risks to future growth. The inflation forecast was revised upward, and they now expect the annual change will not fall below the Federal Reserve's long-run 2.0 percent target within the forecast time horizon.

• Forbearances Rise Slightly as Borrowers Re-enter Plans

  American homeowners, even some of those most affected by the pandemic, seems to be edging back from anything resembling the foreclosure avalanche of 2007 to 2010. Black Knight, in its "first look" at April data, shows loan performance improving quickly, while in a second release, the company's weekly report on forbearance plans, we see that some of the improvement continues in fits and starts. Forbearances rose during the week ended May 18, only the second increase in the last 12 weeks. The number of active plans grew by 16,000, driven by an increase in the number of former plan participants reentering the program. Black Knight said such reentries are common mid-month, especially given the recent large volume of plan removals.

   

• Pricing Out of Whack? Here is Why.

  Today Brian goes over pricing and why it can seem out of whack with one lender one day and another lender the next. It’s basically a form of margin compression. So tune in and let us know what you think in the comments down below! Need a little help streamlining your business loan officers? Carl […]

  The post Pricing Out of Whack? Here is Why. appeared first on National Real Estate Post.

• Compass Losses Force Push Toward Mortgages

  Compass is in the red big time. But apparently that’s what makes a publicly traded real estate company valuable? Don’t you wish it worked that way for you? “Hey I lot a million bucks last year so now I’m worth 50 million!” NOT. Whatever. Anyway, seeing how they keep losing their butts, is mortgage and […]

  The post Compass Losses Force Push Toward Mortgages appeared first on National Real Estate Post.

• Refi Volume Increases for Second Week Despite Rise in Rates

  Mortgage originations are still finding much of their strength in the refinance sector even during those weeks when rates increase. The Mortgage Bankers Association (MBA) said the volume of mortgage applications increased last week even as purchase mortgage volume declined. MBA's Market Composite Index, a measure of mortgage loan application volume, increased 1.2 percent on a seasonally adjusted basis during the week ended May 14 and rose 1.0 percent before adjustment. The Refinance Index rose for the second straight week, increasing 4 percent although it was down 2 percent compared to the same week one year ago. The refinance share of mortgage activity increased to 63.3 percent of total applications from 61.3 percent during the week ended May 7. Both the seasonally adjusted and the unadjusted Purchase Indices were down 4 percent from one week earlier. The unadjusted Index was 2 percent higher than the same week in 2020.  

   

• Builder Confidence Holds Steady in Face of Rising Costs

  The National Association of Home Builders (NAHB) said new home builders are not losing faith in the market for new homes despite their growing concerns over the price and availability of lumber and other building materials. The NAHB/Wells Fargo Housing Market Index, a measure of builder confidence, was at 83 in May, the same level as in April. "Low interest rates are supporting housing affordability in a market where the cost of most materials is rising," said NAHB Chief Economist Robert Dietz. "In recent months, aggregate residential construction material costs were up 12 percent year-over-year, and our surveys suggest those costs are rising further. Some builders are slowing sales to manage their own supply-chains, which means growing affordability challenges for a market in critical need of more inventory."

   

• More Than 1 Million Loans in Forbearance Scheduled to Expire in June

  The number of loans in active forbearance plans dropped by 2.7 percent last week. Black Knight says this continues a recent trend of strong improvements in the forbearance numbers in the early part of each month. The 61,000 loans that exited the program during the week ended May 11 leaves 2.16 million loans still in the various lender programs, 4.1 percent of all active mortgage loans. Last week's program exits affected all loan types. GSE (Fannie Mae and Freddie Mac) forbearance volumes declined by 13,000, 19,000 VA and FHA loans exited, and there was a 29,000 loan reduction in PLS/portfolio forbearances. This leaves 684,000 GSE loans, 881,000 VA and FHA loans, and 598,000 PLS portfolio loans in active plans.

• CoreLogic: Equity Growth Among Homeowners May Provide Significant Foreclosure Barrier

  Two companies have issued reports on the strong gains in homeowner equity. Not only is this an indication of building household wealth and the ability of the housing market to withstand some of the economic damage of the pandemic according to ATTOM Data Systems in its first quarter U.S Home Equity and Underwater Report, but the CoreLogic, in a blog entry, says the equity  could help prevent widespread mortgage defaults and foreclosures as government pandemic support fades. ATTOM reports that 17.8 million U.S. homes were, in its words, "equity rich" in Q1. That is, the combined loan-to-value ratio (CLTV) of their mortgages was 50 percent or less. The 17.8 million homes represent 31.9 percent or one out of every three of the 55.8 million mortgaged homes in the U.S. This up from 30.2 percent in the fourth quarter of 2020, and 26.5 percent in the first quarter of 2020.

   

• Construction Starts Pulled Back in April Due to Supply Problems

  Housing starts fell back from the annual rate of 1,733,000 units reported for March. Residential starts in April were down 9.5 percent to a seasonally adjusted annual rate of 1,569,000 units. This was also a slight rollback for the March estimate, which was originally reported at 1,739,000 million units. At that level, they were the highest since June 2006 and represented a 19 percent jump from February. Even with April's pullback, starts during last month are up 67.3 percent from a year earlier when the nation was in the midst of the pandemic lockdown. After the surge in April, a slight retreat was anticipated, but analysts surveyed by Econoday had expected they would remain above 1.7 million. The Census Bureau/Housing and Urban Development report, however, came in below their lightest estimates. The consensus was 1.705,000 units with a range from 1,600,000 to 1,770,000.

   

• Appraisal Issues – Let’s Talk

  Today we interview Mark Skapinetz about appraisal issues. Mark has a wealth of experience, and knows what he’s taking about. He also comes with significant credentials so it’s worth the listen. Today we discuss Racism, Entry into the appraisal field, Appraisal fees and Appraisal waivers. We plan on having Mark back to discuss other issues […]

  The post Appraisal Issues – Let’s Talk appeared first on National Real Estate Post.

• Wait.. Maybe it is a Bubble

  Is it a darn bubble or not? Most say no, but there seems to be some stuff going on that might suggest otherwise. Today we talk about a particular company that was going to to public, but retracted for an interesting reason. Does it point to something behind the scenes that suggests there may be […]

  The post Wait.. Maybe it is a Bubble appeared first on National Real Estate Post.

• Next New Home Sales Report Should End Slump -MBA

  That applications for mortgages to purchase newly constructed homes rose 30.8 percent in April compared to a year ago is not a particularly useful piece of data given the state the global economy was enduring in April 2021. However, it is good news that the Mortgage Bankers Association (MBA) estimates that new home sales are expected to increase by 8 percent when the April numbers are published.

  MBA says its estimate of new home sales at an annualized rate of 770,000 units means an end to a two-month slump but, while strong, it is still below the 877,000 unit pace at the end of last year. Mortgage applications were also down month-over-month by 9 percent. The change in application volume does not include any adjustment for typical seasonal patterns.

• March 2021 Hottest Market Ever

  Congratulations! You’ve all made history and were part of the hottest real estate market EVER! Yes, March 2021 was the hottest market ever and now we’re heading into the summer months which means, you guessed it, it’s going to get even hotter. Let’s hope some inventory comes to the scene and let’s hope even more […]

  The post March 2021 Hottest Market Ever appeared first on National Real Estate Post.

• Opendoor Offers Discounted Real Estate Services

  Yep. Opendoor is now selling real estate the “traditional” way for 5% commission, which is what they are considering a “discounted fee”. Of course, slam all other Realtors saying they charge 6%, which we all know is not true in most areas. But to start offering traditional real estate listing agreements is an interesting move […]

  The post Opendoor Offers Discounted Real Estate Services appeared first on National Real Estate Post.

• Conventional Loan Access Expanded in April

  Access to mortgage financing improved in April, driven by a large gain in the availability of both conforming and jumbo mortgages. The Mortgage Bankers Association (MBA) said its Mortgage Credit Availability Index (MCAI) rose 2.2 percent to 128.1 during the month. An increase in the MCAI indicates that lending standards are loosening. The Conventional MCAI increased 4.8 percent, while the Government MCAI ticked up by 0.1 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 6.9 percent, and the Conforming MCAI rose 12.6 percent. "Credit availability rose in April, fueled by a 5 percent increase in conventional mortgage credit, as well as an expansion in agency programs for ARMs and high-balance loans. The conforming and jumbo loan indices jumped 7 percent and 13 percent, respectively. The uptick in credit supply comes as the housing market and economy continue to strengthen," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "One trend that has developed in recent months is the rising demand for ARMs, driven by higher rates for fixed mortgages and faster home-price appreciation."  

   

• Even "Off-Radar" Metros Saw Huge Q1 Price Gains

  Metro area home prices rose sharply in the first quarter of 2021 and virtually every part of the country was impacted. The National Association of Realtors® (NAR) said that 99 percent of the 183 areas it tracks posted annual price gains, and for 89 percent (163 areas) those increases were in the double digits. For comparison, in the first quarter of 2020 only a quarter of the areas (46 of 181) had that magnitude of growth. The median price of an existing single family home rose 16.2 percent to a national median of $319,200, the largest gain since 1989. The 11 areas with the most outsized growth, however, were not necessarily those with the most expensive homes. The top increase, 35.5 percent, was Kingston, New York where the median is now $303,100. The highest median price among the 11 was number two, Bridgeport/Norwalk, Connecticut. Its 34 percent annual increase brought the median price to $580,400.

   

• Mortgage Application Volume Revs Up For The First Time Since April

  Mortgage application volume rose for the first time since mid-April last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, increased 2.1 percent on a seasonally adjusted basis during the week ended May 7 and was 2.0 percent higher on an unadjusted basis. The Refinance Index gained 3 percent from the previous week but was down 12 percent from its level during the same week one year ago. The refinance share of mortgage activity increased to 61.3 percent of total applications from 61.0 percent the previous week. Both the seasonally adjusted and the unadjusted Purchase Indices grew by 1 percent from the prior week. The unadjusted Purchase Index was 13 percent higher than the same week in 2020.

   

   

• Do We Need More Appraisal Oversight?

  About 10 years ago the appraisal industry got slammed with HVCC. Suddenly we had a new way of getting an appraiser out to see a property with the rollout of the “AMC”. Back then it didn’t seem like a very good idea, but today I think many would say that it was probably for the […]

  The post Do We Need More Appraisal Oversight? appeared first on National Real Estate Post.

• Zillow Says They Lead Offline to Online Transition

  According to Zillow, the entire real estate industry is “transitioning” from offline to online and they, of course, are the leaders in this transition. The truth is, if there is a leader in this supposed transition from offline to online, it’s them. This is such a hard pill for us to swallow over here at […]

  The post Zillow Says They Lead Offline to Online Transition appeared first on National Real Estate Post.

• Early Stage Delinquencies Sink to All-Time Lows

  The Mortgage Bankers Association (MBA) reports that the percentage of non-current mortgages dropped by 35 basis points (bps) in the first quarter of 2021. According to MBA vice president Marina Walsh, it was the largest quarterly decline in delinquencies in the history of the Association's National Delinquency Survey. The national delinquency rate for mortgage loans on one-to-four unit residences was at a seasonally adjusted rate of 6.38 percent at the end of the quarter. The rate includes loans in forbearance if borrowers are not making payments as agreed but does not include loans in the process of foreclosure. The delinquency rate peaked at 8.22 percent in the second quarter of 2020 and within three quarters has dropped by 184 bps to 6.38 percent. Despite the improvements, however, the overall rate is still 202 bps higher than it was at the same point in 2020.

   

• Homebuying Sentiment Turns Negative Despite Economic Improvement

  Fannie Mae has conducted the National Housing Survey every month since 2011. Among its most prominent questions are those relating to home buying and home selling: is it a good or a bad time to do either one? Last month the net positive responses for the good time to buy category fell into negative territory for the first time. The good time to sell question had plunged into seriously negative territory (-36 percent) in the spring of last year as the pandemic hit, but this time it remained well above water. Sixty-seven percent of respondents viewed this as a good time to sell versus 26 percent who did not, a net positive of 41 percent, an 8 point gain from March and up 77 points from the disastrous results during the lockdown.

   

• Delinquency Rates Leveled Off in February

  Mortgage delinquency rates ticked up slightly in February, the first increase since August 2020. CoreLogic said the national delinquency rate at the end of the reporting period was 5.7 percent, up 0.1 percentage point from January. The rate indicates the percentage of all mortgages that were 30 or more days past due including those in foreclosure. The rate in February 2020, one month before the COVID-19 virus shut down much of the country, was 3.6 percent. It peaked at 4.3 percent in August 2020.  "Some families that had overspent during the year-end holiday season, and then faced financial stress in the new year, may slip behind on a mortgage payment by February," said Dr. Frank Nothaft, chief economist at CoreLogic. "During each of the last five years, the 30-day delinquency rate moved higher from January to February. With economic conditions improving, we expect delinquency rates to move lower in coming months."

   

• Regulations and Government Kill Affordable Housing

  We’re betting you have no idea how much the average cost is, in regulation and fees, to build a new home nationally. It’s no wonder there is such a shortage of affordable housing. Why is this so easy for a couple of schmucks from Vacaville (literally translates to “cow-town) California USA to see, and so […]

  The post Regulations and Government Kill Affordable Housing appeared first on National Real Estate Post.

• What's Behind the Surge in Lumber Prices?

  In a recent post on the National Association of Home Builder's (NAHB's) Eye on Housing blog, chief economist Paul Emrath said rising softwood lumber prices have added $35,872 to the price of an average new single-family home, and $12,966 to the market value of an average new multifamily home.  The price increases affect any softwood used in structural framing, sheathing, flooring and underlayment, interior wall and ceiling finishing, cabinets, doors, windows, roofing, siding, soffit and fascia, and exterior features such as garages, porches, decks, railing, fences, and landscape walls.  Products include not just dimensional lumber, by plywood, OSB, particle and fiberboard, shakes and shingles. Emrath quotes prices from data tracker Random Lengths that, as of April 17, 2020, the total cost to a builder for all the lumber and manufactured lumber products described above was $16,927 for the products in an average single-family home, and $5,940 for the products in an average multifamily home. By April 23, 2021, the fully phased-in costs have risen to $48,136 for the softwood lumber products in an average single-family, and $17,220 for the products in an average multifamily, home.  These estimates represent a 184 percent and 190 percent increase in single-family and multifamily builders' lumber costs, respectively, over the past year and translates to a rent increase of $119 per month for a new apartment.

• So Many Refinances are Still Out There

  Today we start off with some crazy mortgage and rent late payment stats, and then we talk about a Judge that want’s to make matters worse, of course. And then we kick into some interesting numbers with respect to how many home owners there are left out there that can still refinance, and, it’s no […]

  The post So Many Refinances are Still Out There appeared first on National Real Estate Post.

• Forbearance Exits Soar as More Plans Expire

  There was a sharp decline in the number of loans in forbearance during the week ended May 4.  Black Knight says this has come to be the norm during the early weeks of each month. Overall forbearance volumes dropped by 105,000, a 4.5 percent improvement. The company, in its weekly report, said there are another 73,000 active plans with terms that expired at the end of April which may drive more exits in early May. There were thousands of departures of each loan type. GSE forbearance volumes were down 39,000 or 5.3 percent, 44,000 FHA and VA loans left the program (4.7 percent), and the number of forborne loans serviced for bank portfolios and private label securities (PLS) declined by 22,000 or 3.4 percent.

   

• $15k Tax Credit Misses the Mark

  Is it just us? Or does anyone else feel like the $15k tax credit for first time home buyers misses the mark right now? Certainly we need to bridge the home ownership gap for minorities, that’s a given. But right now, the real problem we’re facing is clearly, at least to us anyway, that there’s […]

  The post $15k Tax Credit Misses the Mark appeared first on National Real Estate Post.

• Millennials Driving Home Prices; Entry Level Homes See Greatest Gains

  Another home price index shows double digit annual price increases, this time for March, and  the CoreLogic HPI also has the highest month-over-month gain we have seen in the present environment. The company says there was an 11.3 percent national rate of appreciation during the month while prices were up 2.0 percent from February. There were no states in which prices declined year-over-year, and those with the highest rates included Idaho (25 percent), Montana (18.8 percent), and Arizona (18 percent).

  The company says the 2021 spring homebuying season is on track to outpace trends seen in 2019 and 2018. Millennials are driving the demand, accounting for 54 percent of home purchase applications over the last year. "Older millennials are seeking move-up purchases and younger millennials are entering peak homebuying years. As we look towards the second half of the year, further erosion of affordability may dampen purchase demand as prospective buyers continue to compete for the severely limited supply of for-sale homes. A pick-up in construction and an increase in for-sale listings as more people get vaccinated may help moderate surging home price growth."

  Frank Nothaft, CoreLogic's chief economist said, "Lower-priced homes are in big demand and short supply, driving up prices faster compared to their more expensive counterparts. First-time buyers seeking a starter home priced 25 percent or more below the local-area median saw prices jump 15.1 percent during the past year, compared with the overall 11.3 percent gain in our national index."

  The CoreLogic HPI Forecast is for gradually slowing rates of growth. Prices are expected to increase between March and April 2021 by 1.1 percent and drop to 3.5 percent by March 2022.

  The HPI Forecast also reveals the continued disparity in home price growth across metros. In markets like Houston, which was hit hard by the collapse of the oil industry and the recent hurricane season, home prices are expected to decline 0.5 percent over the next year. Conversely, San Diego saw prices grow 14 percent over the last year and are projected to see additional appreciation of 12.5 percent by March 2022.

• Fannie/Freddie Provide Details on New Refi Options

  Fannie Mae and Freddie Mac (the GSEs) have provided details for their streamlined refinance programs that were originally announced by the Federal Housing Finance Agency (FHFA) last month. The programs, named "RefiNow" by Fannie Mae and "Refi Possible" by Freddie Mac, will be available starting June 5 for Fannie Mae's borrowers but not until August 30 through Freddie Mac. The programs are designed to encourage eligible low-income borrowers to refinance and lower their interest rates and monthly mortgage payments. In its original announcement FHFA said it expected borrowers who refinanced through the initiative to save between $100 and $250 a month.

   

• Zillow and REX Trade Blows in Battle

  REX is suing Zillow and Zillow is blowing it off. There’s a big dispute going on between the two, who’s going to win? Also on today’s show we continue to talk about the inventory problem where we go over some very interesting new construction stats. Do you know how many homes were being built each […]

  The post Zillow and REX Trade Blows in Battle appeared first on National Real Estate Post.

• Residential Sector Continues to Drive Construction Spending

  Nationwide spending on construction edged up fractionally in March, but the big story was the annual gain in residential construction spending, especially for new single-family housing. The U.S. Census Bureau said construction, public and private, for all sectors inched up 0.2 percent from February and was 5.3 percent higher compared to March 2020 at $1.513 trillion. However, residential spending gained 23.3 percent on an annual basis.

  Virtually all residential spending was in the private sector. Overall, the seasonally adjusted annual rate of total public expenditures in March was 1.169 trillion compared to 1.160 trillion in February, an 0.7 percent gain and 8.6 percent more than was spent a year earlier. The residential spending rate constituted more than half that figure at $745.245 billion. This represented 1.7 percent growth from the $713.056 billion spent the prior month and 23.3 percent more than the spending rate in March 2020.

• Fannie and Freddie Told to Write Their Wills

  The GSEs Fannie Mae and Freddie Mac have been given orders to develop so-called living wills. Such wills are credible resolution plans that outline how either GSE could be rapidly and orderly resolved should the Federal Housing Finance Agency (FHFA) be appointed their receiver in the event of another financial crisis. The mandate is in the form of a final rule issued by FHFA on Monday.

  The rule is similar to those issued by the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) under which many large financial institutes are required to submit such wills. Both the Department of the Treasury and the Financial Stability Oversight Council have endorsed living rules for the GSEs.

• Mortgage Application Volume Struggles to Keep up With Hot Housing Market

  Mortgage application volume lost ground again last week, although the decline was small and refinancing volume pulled out a sliver of a gain. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 0.9 percent on a seasonally adjusted basis during the week ended April 30. On an unadjusted basis, the Index was 1 percent lower than the prior week.   The Refinance Index increased 0.1 percent from the previous week but lagged the Index on the same week in 2020 by 17 percent. The refinance share of mortgage activity increased to 61.0 percent of total applications from 60.6 percent the previous week.

   

• CFPB Says Mortgage Complaints Have Spiked

  The Consumer Financial Protection Bureau (CFPB) says the overall mortgage related complaints it has received recently are at their highest level in three years. The report was one of two that the agency says show that more work needs to be done to help mortgage borrowers during the COVID-19 pandemic and its economic fallout. A second report documents that Black and Hispanic mortgage borrowers are much more likely to be delinquent or in a forbearance program than white borrowers. CFPB said consumers submitted more mortgage complaints in March than in any month since April 2018. Those concerning forbearance or related issues also reached their highest monthly average since March and April of 2020. The number of borrowers who report they are struggling to make their payments is also trending upward.

   

• Barry Habib on Hot Housing Market

  What is the deal with this insane hot housing market? Is it a bubble? What’s driving it? Today we talk with Barry Habib about the housing market and interest rates. Where does Barry see interest rates going the rest of the year? Tune in and find out. And remember you can get MBS Highway to […]

  The post Barry Habib on Hot Housing Market appeared first on National Real Estate Post.

• Fannie/Freddie Income and Net Worth Increased in Q1

  Both Fannie Mae and Freddie Mac reported improved income during the first quarter of 2021. Fannie Mae said its net income increased from $4.57 billion in the fourth quarter of 2020 to $4.99 while Freddie Mac reported a net of $2.77 billion and comprehensive income of $2.38 billion, down slightly for the quarter but significantly higher than a year earlier. Fannie Mae said its net revenues totaled $6.829 billion, down from $7.245 billion the previous quarter, with a decline f $344 million in interest income and $72 million less in fee and other income to $6.74 billion and $87 million, respectively. The decline in interest income was due to lower levels of single-family mortgage prepayments in the first quarter. The company expects that lower levels of refinancing in the future will likely result in fewer loan prepayments and lower amortization income in any given period.

   

• For Loan Performance, Good News Across the Board

  Black Knight's "first look" at March loan performance data explored the somewhat traditional dip in delinquencies each March due to calendar events like the arrival of tax refunds and the decline of winter utility bills. That was amplified this past March by a rebounding economy and labor market, low interest rates, $378 billion in stimulus payments, and that, for the first time since December, a month that did not end on a Sunday. Only 217,000 mortgages that were current in February became 30 days past due in March, the lowest transition rate on record, and some 671K previously delinquent mortgages cured during the month, making it a "top 5" month of the past decade in that respect as well. Thus, the delinquency rate dropped 16.4 percent to 5.02 percent, the largest monthly decline in 11 years.

   

   

• NAMB – FHFA Not Far Enough

  Today we have an interview with NAMB President Kimber White about the CFPB QM rule being kicked down the road and the new FHFA Low-to-Mod refinance. Kimber always has an interesting angle on things and on this show he’s feeling that FHFA hasn’t gone far enough to help all those in need of help. What […]

  The post NAMB – FHFA Not Far Enough appeared first on National Real Estate Post.

• How Can Zillow be Worth More than Realogy?

  We don’t get it. How can a company that actually sells a ton of homes and makes a bunch of money be valued less than Zillow? Realogy posted their best quarter ever and when you do the side by side as far as real estate transactions go, they should dwarf Zillow in value. But they […]

  The post How Can Zillow be Worth More than Realogy? appeared first on National Real Estate Post.

• Forbearance Totals Tick Higher

  The number of loans in forbearance rose over the past week, driven by increases in those held in bank portfolios and private label securities (PLS). Black Knight said the first uptick in nine weeks netted out to only 20,000 as the number of forbearances serviced for Fannie Mae and Freddie Mac (the GSEs), FHA, and the VA  declined. As of April 27, there were an estimated 2.39 million loans in the program, 4.4 percent of the nation's approximately 53 million mortgages. The company noted that mid-month spikes in forbearances have been common in recent months as the overall trend in improvements continues. Plan volumes have decreased by 228,000 loans, 8.9 percent of the total, over the past month.

   

• Refinance Loans Continue to Dominate Freddie Mac's Volume

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 27.2 percent in March compared to a 17.7 percent gain in February. The portfolio balance at the end of the period was $2.927 trillion compared to $2.882 trillion the prior month and $2.404 trillion a year earlier. Purchases and Issuances totaled $142.465 billion, and Sales were ($.785) billion. The February  numbers were $114.682 billion and ($.460) billion, respectively. Single-family refinance loan purchase and guarantee volume was $103.3 billion in March compared to $85.0 billion in February, representing a 76 percent share of total single-family mortgage portfolio purchases and issuances, down from 77 percent the previous month.

   

• New Low to Mod Refi Program Rolling Out

  FHFA is rolling out a new Low-to-Mod refinance program that could give mortgage companies a boost in business with rising rates. We don’t have all the details, but we’re sure if you’re an originator, you’ll be able to dig them up and get some marketing going right away. Loan officer and Real Estate agents. Got […]

  The post New Low to Mod Refi Program Rolling Out appeared first on National Real Estate Post.

• Fannie/Freddie Creates Opportunity for Higher Risk Borrowers Who Missed Refi Boom

  Earlier this month the Urban Institute pointed out that the unprecedented low interest rates of the pandemic era have not benefitted everyone. Their research showed that tightening credit access has meant that low income homeowners, and those with high loan to value (LTV) ratios or low credit scores have largely been left out of the rush to refinance. The Federal Housing Finance Agency (FHFA) has now announced a new refinancing option to address that situation. FHFA says it has directed the GSEs Fannie Mae and Freddie Mac to implement an initiative to encourage eligible low-income borrowers to refinance and lower both their interest rates and their monthly mortgage payments. It estimates that borrowers who take advantage of this opportunity could save between $100 and $250 a month.

   

• Digital Lending Tools are Reducing Mortgage Timeframes

  There has been a significant reduction mortgage processing times since the first of the year according to ICE Mortgage Technology. Its Origination Insight Report says that the time to close a purchase mortgage, which averaged 57 days in January declined to 53 days in February then to 51 days in March. Refinancing has seen similar improvement, falling from 59 days in January to 52 days in each of the subsequent months. The time to close for all loans was also 51 days, 6 fewer than in January. "We're seeing a compelling reduction in the time to close a mortgage as we continue into 2021," said Joe Tyrrell, president of ICE Mortgage Technology. "Part of the reason is lenders are continuing to adopt digital mortgage tools to improve their loan origination process and serve homebuyers more efficiently for example eClose, which makes for a more streamlined process that saves time, and that shift is showing up in the data."

   

• Pending Home Sales Rise Less Than Expected as Inventory Remains Ultra Tight

  While the degree to which is happened was somewhat disappointing, pending home sales did snap out of a two-month slump in March. The National Association of Realtors'® (NAR's) Pending Home Sales Index (PHSI) rose 1.9 percent to 111.3 in March and is now up 23.3 percent compared to March 2020. However, NAR points out that the annual increase was largely due to the country-wide pandemic related shutdown a year ago. The PHSI, which is based on contracts signed to purchase existing homes, had fallen 10.6 percent in February on top of a 2.8 percent loss the previous month. Analysts polled by Econoday had expected a stronger rebound in March, looking for an increase of 2 to 6 percent. Their consensus was a 3.8 percent gain.

   

• UWM Gets Sued and $15K on the Way for FTHB’s

  United Wholesale Mortgage (UWM) is facing a class action lawsuit over the ultimatum they gave their mortgage brokers regarding Rocket Pro TPO and Fairway Mortgage. We’ll see where that goes. And it looks like the $15k tax credit for FTHB’s is on it’s way to being a reality. If only there were homes to buy, […]

  The post UWM Gets Sued and $15K on the Way for FTHB’s appeared first on National Real Estate Post.

• S&P Analysts: Accelerating Home Prices Reflect Economic Recovery

  A month after interest rates began to rise, neither the S&P CoreLogic Case-Shiller indices nor that from the Federal Housing Finance Agency (FHFA) found any slowdown in home price appreciation. Both logged double digit annual increases, in all cases higher than those in January. The Case-Shiller National Home Price Index, which covers all nine U.S. census divisions, rose 12.0 percent in February compared to an annual increase of 11.2 percent in January. On a month-over-month basis the National Index was up 1.1 percent before and after seasonal adjustment. The 10-City Composite Index gained 11.7 percent and the 20-City index was 11.9 percent higher than a year earlier. The annual increases in the two composites in January were 10.9 percent and 11.1 percent, respectively. the 10-City and 20-City Composites posted increases of 1.1 percent and 1.2 percent respectively from January for both their adjusted and non-adjusted indices.  

• Mortgage Application Volume Falls Despite Lower Rates

  The solid 8.6 percent increase in mortgage application volume during the week ended April 16, only the fourth gain thus far in 2021, was short lived. The Mortgage Bankers Association reports that its Market Composite Index resumed a downward trend during the week ended April 23 even though mortgage rates moved lower. The index, a measure of mortgage application volume, decreased 2.5 percent on a seasonally adjusted basis and 2 percent unadjusted compared with the previous week. The Refinance Index decreased 1 percent from the previous week and was 18 percent lower than the same week one year ago. Applications for refinancing remain the majority; the share last week increased to 60.6 percent of total applications from 60.0 percent the previous week. The seasonally adjusted Purchase Index dropped by 5 percent from one week earlier and 4 percent unadjusted. It was 34 percent higher than the same week in 2020.  

   

• Homeownership Rate Pulls Back from 11 Year High

  The national homeownership rate moved fractionally higher in the first quarter of 2021 when compared to the same quarter in 2020 but was lower than in each of the prior three quarters. The U.S. Census Bureau put the rate at 65.6 percent compared to 65.3 percent a year earlier. The rate had spiked over 6.5 percent in both the second and third quarters of 2020, the highest rates since 2009. Homeownership was highest in the Midwest at 70.3 percent, followed by the South (67.4 percent), Northeast (63.1 percent) and lowest in the West at 59.7 percent. The rate in the Midwest was a point higher than a year earlier while the other regions' changes are not considered statistically different.

• CFPB Delays QM Rule Compliance and Patch Demise

  Lenders will have more than an additional year to comply with the General Qualified Mortgage (QM) Rule. The Consumer Financial Protection Bureau (CFPB) says it is formally delaying the mandatory compliance date for the new rule from July 1, 2021 to October 1, 2022. The Bureau says it is taking the action "to help ensure access to responsible, affordable mortgage credit, and preserve flexibility for consumers affected by the COVID-19 pandemic and its economic effects." The delay will also give lenders more time to use the so-called GSE Patch. The Patch provides QM status to loans that are eligible for sale to Fannie Mae or Freddy Mae (the GSEs). Use of the Patch, however, may be limited by recent revisions to the Preferred Stock Purchase Agreements between the U.S. Treasury and GSEs' regulator and conservator the Federal Housing Finance Agency.

   

• New Construction Reminiscent of 2006

  New Construction is WAY up year over year. This is great for our inventory problem, but is it reminiscent of 2006? Let’s hope not! At any rate we take a little stroll down memory lane today regarding 2006 and do a little comparison to 2021. Let us know your thoughts below. Let Oaktree Funding help […]

  The post New Construction Reminiscent of 2006 appeared first on National Real Estate Post.

• Urgent Action to Counter CFPB QM Rule

  Get a demo of the mortgage brokerage industry’s only fully mobile friendly, POS, LOS and CRM – Broker Plus by clicking the image below. To notify your Congressional Representatives to counter the CFPB QM RuleCLICK HERE! To register for NAMB National for FREECLICK HERE! To check out NAMB’s VA Training CoursesCLICK HERE!

  The post Urgent Action to Counter CFPB QM Rule appeared first on National Real Estate Post.

• New Home Sales Top 1 Million, Setting Post-Recession High

  New home sales reversed direction in March, fully recovering from the 18.2 percent nosedive those sales took in February. The Census Bureau said sales of newly constructed homes rose 20.7 percent to a seasonally adjusted annual rate of 1.021 million units. This is 66.8 percent higher than the sales 612,000 unit pace in March 2020, although that rate was impacted by the pandemic shutdowns and was the highest annual sales rate since 2005. February's loss was also smaller than originally reported. Those sales were revised from 775,000 to 846,000 units.

   

• Housing Crash Google Search up 2,450%

  Will this be a self fulfilling prophecy? The Google searches regarding when the next housing crash will hit are up 2,450%. WOW. Consumer confidence controls a lot of important stuff like the stock market and the economy overall. How about the housing market? Does this mean a slow down is around the corner? Will a […]

  The post Housing Crash Google Search up 2,450% appeared first on National Real Estate Post.

• It's March and the Spring Market is MIA

  Existing home sales declined for the second straight month in March. The National Association of Realtors® (NAR) said single-family homes, townhomes, condos, and cooperative apartments sold at a seasonally adjusted annual rate during the month of 6.01 million units. This is down 3.7 percent from February’s sales pace, but still marks an increase of 12.3 percent from the March 2020 rate of 5.35 million. The two-month downturn has reduced the annual sales rate by more than 600,000 units since January. Sales of single-family homes dropped 4.3 percent compared to the prior month to a rate of 5.54 million, 10.4 percent more than a year earlier. Condo and co-op sales rose 1.4 percent and were 29.1 percent higher year-over-year.

   

• MBA Forecasts Record Purchase Volume This Year

  The Mortgage Bankers Association (MBA) is predicting a banner year for purchase mortgage originations. The Association's chief economist and senior vice president Mike Fratantoni told attendees at MBA's Spring Conference and Expo that those originations are on track to grow 16.4 percent this year, setting a probable new record at $1.67 trillion. Refinancing will, however, drag overall origination volume down from last year's record $3.83 trillion to $3.28 trillion, a 14 percent decline. That would still be the third highest volume ever. "The housing market is incredibly strong this year, with robust housing demand in nearly every part of the country, driven by the improving economy, households seeking more indoor and outdoor space, millennials reaching their prime homebuying years, and still low mortgage rates," Fratantoni said.  "A lack of supply is the biggest hurdle to an even larger increase in home sales. The widening imbalance of supply and demand is driving up home-price growth and eroding affordability - especially for entry-level buyers."

   

• Buyers Moving on Fixers with Tight Inventory

  Buyers are moving in on fixers with the inventory being so tight. But even then, there are offer battles going on. Maybe there’s a play for you in this as a real estate agent? Maybe there’s a play in this for you as a loan originator if you have access to renovation loans? Either way, […]

  The post Buyers Moving on Fixers with Tight Inventory appeared first on National Real Estate Post.

• March Delinquency Drop Probably Exaggerated by Events

  Black Knight's "first look" at loan performance data in March brought back memories of an old TV ad, "Is it real or is it Memorex?" The company said that mortgage delinquencies were down during the month by a whopping 16.4 percent. The company is quick to note that the apparent improvement is probably not indicative of a trend. March is typically the best month of the year for mortgage performance and over the years other sources have explained this in part on the winding down of winter's higher home energy heating costs, seasonal relief from back-to-school and holiday expenses, the short month the precedes it, pushing some February payments into March, and as Black Knight also says, the arrival of tax refunds. These factors have, over the last 20 years, helped delinquencies decline by an average of 10 percent in March as homeowners have used extra funds to catch up on mortgage payments.

   

• Most Builders Locking in Lumber Prices or Passing Increases Through

  For months, the National Association of Home Builders (NAHB) has been citing lumber prices as one of the headwinds faced by new home builders as they try to pick up the pace of construction. Those prices nearly doubled over a four-month period in 2020, reaching an all-time high in September. Since then, they have continued their volatility and are now considerably higher than that September peak. Builders say the price and availability of building materials is the top challenge they currently face. In their most recent NAHB/Wells Fargo Housing Market Index survey, NAHB asked their builder members how they are handling the increasing prices. The most common response, given by 47 percent of those responding was by "including price escalation clauses in their sales contracts." Paul Emrath, writing about the survey in NAHB's Eye on Housing blog, says these clauses tie the final house price to the price of building materials while an additional 10 percent of builders are including clauses sharing the increased amount between buyer and seller.

   

   

   

• New $25k FTHB Assistance Program is Fascinating

  There’s a new FTHB down payment assistance program on the fast track to getting done that is the most fascinating thing we’ve ever seen. It’s called the Down Payment Equality Act of 2021. CLICK HERE to see it for yourself. What do you think about this program? Is it a good thing? Does it help […]

  The post New $25k FTHB Assistance Program is Fascinating appeared first on National Real Estate Post.

• Mortgage Applications End Losing Streak

  Mortgage application volume broke out of a six-week slump in a big way during the week ended April 16. The Mortgage Bankers Association said its Market Composite Index, a measure of that volume, jumped 8.6 percent on a seasonally adjusted basis and was 9 percent higher on an unadjusted basis. It was the first positive posting for the index since the week ended February 26 and only the fourth increase this year. The Refinance Index rose by 10 percent from the previous week although it remained 23 percent lower than the same week in 2020. Refinance applications accounted for 60 percent of the total compared to 59.2 percent a week earlier. The seasonally adjusted Purchase Index increased 6 percent before seasonal adjustment and 7 percent afterward. It was 57 percent above its level the same week in 2020.   

   

• NAMB on New CFPB Boss and FHFA

  Today we get some insights to what NAMB President Kimber White has to say about the incoming CFPB Director and what’s going on with FHFA. Not sure when we can expect the new CFPB boss to take over or when a decision will be made on the fate of the FHFA boss Calabria. But, both […]

  The post NAMB on New CFPB Boss and FHFA appeared first on National Real Estate Post.

• Draft Housing Infrastructure and Assistance Bill Presented to FSC

  The House Committee on Financial Services (FSC) held a virtual hearing last week on ways to provide equitable and affordable housing infrastructure. The memorandum setting out the hearing's purpose stated that, not only is affordable housing a crucial part of the nation's infrastructure and a stable asset that boosts individuals, families, and communities' ability to thrive, but it also generates construction activity and jobs that stimulate the economy. Prior to the hearing the FSC published 17 draft bills centering around housing that have been introduced into the current congressional session. They deal with everything from flood insurance to lead paint abatement to housing on Native American lands. One proposal, presented as a draft for discussion, is the "Downpayment Toward Equity Act of 2021." It is of particular interest because it builds on a much discussed housing policy set out during the presidential campaign.

   

• Brighter Outlook For Housing and Economy - Fannie Mae

  Incoming data for March has caused Fannie Mae to again revise its forecast for the year's growth in gross domestic product (GDP). The company's Economic and Strategic Research (ESR) team said a sharp uptick in the economy last month followed a weather-related retreat in February. Most evident was a jump in employment to 916,000 new jobs in March from 468,000 in February, the fastest pace since August 2020. This growth is expected to continue. Auto sales were also up, and consumer confidence surveys jumped to their highest levels since the April 2020 downturn. As a result of these and other heightened indicators, Fannie Mae now sees growth reaching 6.8 percent by the fourth quarter on a year-over-year basis, up from 6.6 percent in the earlier forecast. Expectations for 2022 are unchanged at 3.0 percent.

   

• UI Says HARP 2.0 Could Help Pandemic-Era Borrowers

  The Urban Institute (UI) is advocating for a streamlined refinancing program similar to the Home Affordable Refinance Program (HARP) which aided many homeowners during the Great Recession to assist those impacted by the pandemic. HARP, which was used by more than 3.4 million borrowers between 2009 and 2018, offered simplified documentation, automated appraisals, no or reduced loan-level pricing adjustments, and mortgage insurance transferability to existing GSE (Fannie Mae and Freddie Mac) borrowers. Because home prices had dropped dramatically, leaving many borrowers underwater, eligibility was determined without regard to a mortgage's current loan-to-value (LTV) ratio.

   

• New Home Purchase Applications Ramping up for Spring

  True to tradition, new home sales appear to have moved higher in March as the calendar closed in on the start of the spring market. The Mortgage Bankers Association (MBA) estimates sales of newly constructed homes increased by 7 percent compared to February and are 12 percent higher than a year earlier. This change does not include any adjustment for typical seasonal patterns. Based on the application data, MBA forecasts that home sales were at a seasonally adjusted annual rate of 714,000 units in March. This is a decline of 4.5 percent from the February rate of 748,000 units. On an unadjusted basis, the forecast is for 72,000 new home sales in during the month, an increase of 10.8 percent from 65,000 sales in February. 

• COVID-19 Forbearance Decline Hits Mid-Month Lull

  There was little change in the number of active forbearance plans over the past week, but Black Knight reminds, in its regular Friday report, that this it was simply another mid-month lull as servicers finished processing the prior month's expired plans. Even so, the number of plans did decline for the seventh straight week, even if it was by a mere 1,000 loans or 0.04 percent. There are 380,000 plans set to expire at the end of April so Black Knight says the possibility remains of further improvement over the next two weeks. Even with the minimal decline of the past week, the number of outstanding plans is still down by 296,000 (11.4 percent) over the last month.

   

• Housing Starts Reach Highest Levels Since 2006

  Residential construction recovered in March after a serious decline the prior month. The U.S. Census Bureau and Department of Housing and Urban Development said all three measures rose, with housing starts hitting a 15 year high. Some regional increases topped 100 percent. Permits for residential construction were issued at a seasonally adjusted annual rate of 1.766 million in March, a 2.7 percent increase from February's rate of 1.720 million. The latter is an upward revision from the 1.682 million permits originally reported for February, erasing some of the near 11 percent loss originally reported. The permitting rate for the month was 30.2 percent higher than in March 2020.

   

• 2020 Mortgage Profits Off the Charts!

  Oh my goodness. If you were a loan originator in 2020 and you didn’t make a gazillion dollars, you did something wrong. Now it may not have been you that made all the money, but your company sure did. The average profits that were made nationwide by mortgage companies is unbelievable. Holy-Shamoly!! Well, be sure […]

  The post 2020 Mortgage Profits Off the Charts! appeared first on National Real Estate Post.

• Buyer Demand Provides Modest Boost to Builder Confidence

  New home builders seem to be slowly getting their mojo back. After recovering from the hit they took in the first days of the pandemic, they encountered labor shortages, supply chain issues, and rising material costs. The National Association of Home Builders (NAHB) said that builder confidence in the new home market, driven by strong buyer demand, ticked up slightly this month with the NAHB/Wells Fargo Housing Market Index (HMI) rising 1 point to 83. It is still down by 7 points from the all-time high it reached in November. Robert Dietz, NAHB's chief economist, said builders continue to face challenges in order to add much needed new homes to the market. While mortgage interest rates have trended higher since February and home prices continue to outstrip inflation, housing demand appears to be solid for now as buyer traffic reached its highest level since November. NAHB's forecast is for ongoing growth in single-family construction in 2021, albeit at a lower growth rate than realized in 2020.

   

• NAR Gut Punches Zillow

  Ah… It’s nice to see NAR step up and do something for their 1.2 million members that pay them hundreds or even thousands of dollars a year. But is it too little too late? Even if it is, it’s so nice to see them take a stand. What’s more is the way they did it […]

  The post NAR Gut Punches Zillow appeared first on National Real Estate Post.

• Purchases Now Account For a Majority of New Mortgages

  Black Knight has launched a new monthly report covering mortgage origination activity as gathered through its Optimal Blue loan product and pricing engine. The company says its Originations Market Monitor will publish a series of key indicators drawn from Optimal Blue data as well as secondary market insight from Black Knight's hedging platforms. The initial report covers activity for March and shows that at month's end the average 30-year conforming rate had increased by nearly 60 basis points over the course of the month to 3.34 percent. Still, this was 20 basis points below the rate at the same point in 2020. Average rates by loan product are shown below.

• Freddie Mac Sees Rates and Prices Leveling Off Through 2022

  Freddie Mac's Economic and Housing Research Group finds a lot to like in the present economic environment. . The company's quarterly forecast credits the increasing availability of COVID-19 vaccines and the easing of virus related restrictions, the passage of the American Rescue plan and its cash stimulus for households, as setting the stage for economic growth and sending consumer confidence to a post pandemic high in March. The labor market, while still needing to add 8.4 million jobs, put 916,000 on the books last month, the greatest gain since August.

   
• Loan Officers Crushing it with Commercial Loans

  We’ve been saying we need to explore new verticals if we want to keep our loan revenue going with refinances dropping off. Commercial lending is hot this year for many reasons. Today we interview our partner at NREP Business Lending on how you can get started, what kind of minimum commitment you need to make […]

  The post Loan Officers Crushing it with Commercial Loans appeared first on National Real Estate Post.

• Delinquencies Post Fifth Month of Improvement

  The national delinquency rate posted its fifth consecutive decline in January, retreating to the lowest level since the start of the pandemic. CoreLogic says 5.6 percent of all mortgages were at least 30 days past due during the month, including those loans in foreclosure. This was an increase of 2.1 points compared to the 3.5 percent rate in January 2021. The rate has been declining since August 2020. The early stage delinquency rate, the percentage of loans 30 to 59 days past due, is now lower than the pre-pandemic rate in January 2020, 1.3 percent versus 1.7 percent. The next most adverse bucket, loans 60 to 89 days past due, is down from 0.6 percent to 0.5 percent.

   

• Mortgage Banks Report 2020 Financials Shattered Last Years Records

  While most of us couldn't wait for 2020 to be over, it turns out to have been a superlative year for mortgage originators. The Mortgage Bankers Association's (MBA's) annual Mortgage Bankers Performance Report shows the profit independent mortgage banks and mortgage subsidiaries of chartered banks made on each loan they originated was nearly three times their profit in 2019. Bankers made an average of $4,202 on each loan originated in 2020, up from $1,470 in 2019. While servicing profits were down, production profits more than compensated. Ninety-nine percent of the firms posted overall pre-tax net financial profits in 2020, compared to 92 percent in 2019 and only 69 percent in 2018.

   

• Mortgage Applications Decline Further, High Costs Constraining Home Sales

  Higher interest rates drove the volume of mortgages applications lower again last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decreased 3.7 percent on a seasonally adjusted basis during the week ended April 9. On an unadjusted basis, the Index was down 3 percent compared with the previous week. The Refinance Index was 5 percent lower week-over-week and 31 percent below its level during the same week in 2020. The refinance share of mortgage activity decreased to 59.2 percent of total applications from 60.3 percent the previous week. The seasonally adjusted Purchase Index dipped 1 percent on both an adjusted and unadjusted basis and was 51 percent higher than the same week one year ago.

   

• New QM Rule Explained by David Stevens

  Today we interview David Stevens on the new QM rule which is rolling out on July 1, 2021. In this interview you’ll also learn several other things that you probably didn’t know about that has a direct impact on your business as a loan officer. At the end of the day, it appears, that the […]

  The post New QM Rule Explained by David Stevens appeared first on National Real Estate Post.

• No Income Non-Owner 80 LTV Taking Over

  To register for our webinar on how to get Agents, click the image below. Use the code: Oaktree to get 20% off of your new Listing Booster subscription if you choose to join. Oaktree has a ton of great products as you already know. How about a non owner occupied, NO INCOME VERIFICATION deal at […]

  The post No Income Non-Owner 80 LTV Taking Over appeared first on National Real Estate Post.

• Fannie/Freddie Announce End Dates for QM Rules

  Both Fannie Mae and Freddie Mac (the GSEs) have released information to their lenders confirming that any loans they purchase after July 1, 2021 must conform to the agreement made on their behalf in January by the Federal Housing Finance Agency (FHFA) with the Department of Treasury, amending the Preferred Stock Purchase Agreement (PSPA).  Although there were several requirements in the amended PSPA designed to limit risk, last weeks letters were specifically concerned with the new qualified mortgage (QM) rule from the Consumer Financial Protection Bureau (CFPB). The revised PSPA specifically prohibits the GSEs from acquiring loans that do not meet this rule.

   

• Why HUD Won’t Lower MI

  Today we interview NAMB President Kimber White on a couple matters, one of which is why HUD won’t budge on lower their required MI. We believe it’s because they see trouble in the future. But who knows? What do you guys think? Also, NAMB keeps getting indication that the CFPB is going to start looking […]

  The post Why HUD Won’t Lower MI appeared first on National Real Estate Post.

• Jumbo Loans Easier to Obtain as Economy Recovers

  Non-government lenders continue to return to mortgage lending after fleeing at the start of the pandemic. The Mortgage Bankers Association (MBA) says this has helped increase the supply of jumbo mortgages for six straight months and helped drive MBA's Mortgage Credit Availability Index (MCAI) up slightly in March. The Index rose 0.6 percent to 125.4 last month. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The Conventional MCAI increased 0.8 percent, while the Government MCAI increased by 0.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 1.5 percent, and the Conforming MCAI rose by 0.2 percent.

• Forbearance Decline Largest in Six Months

  Black Knight reports that the number of loans in forbearance programs declined last week for the sixth straight time and it was the largest drop in six months. As of April 6, the number of loans in active plans was 2.312 million or 4.4 percent of all homeowners with mortgages. This is down by 228,000 from the previous Tuesday, a 9 percent drop in a single week. A company spokesperson said the decrease was not unexpected. It was driven largely by those who entered the program shortly after it was authorized exiting their plans at the 12-month mark. That would have been their final expiration point prior to recent extensions. The improvement was widespread. All investor classes saw significant improvement in their numbers. The largest change was among those loans serviced for FHA and VA, down 94,000.  This was followed by downturns of  69,000 and 65,000 in GSE (Fannie Mae and Freddie Mac) and portfolio/private label security (PLS) plan forbearances, respectively. At the end of the reporting period there were 753,000 GSE, 954,000 FHA/VA and 605,000 portfolio/PLS loans remaining in programs.

• 2020 Property Tax Increases Outpaced Inflation

  American home owners received bills for $323 billion in property taxes last year, a 5.4 percent increase from $306.4 billion in 2019. ATTOM Data Solutions says that the average bill for each of the 87 million single-family homes in the country was $3,719, an effective tax rate of 1.1 percent. This average was up 4.4 percent from $3,561 in 2019 while the effective property tax rate of 1.1 percent in 2020 was down slightly from 1.14 percent in 2019.= "Homeowners across the United States in 2020 got hit with the largest average property tax hike in the last four years, a sign that the cost of running local governments and public school systems rose well past the rate of inflation. The increase was twice what it was in 2019," said Todd Teta, chief product officer for ATTOM Data Solutions. "Fortunately for recent home buyers, they have mortgages with super-low interest rates that somewhat contain the cost of home ownership. But the latest tax numbers speak loud and clear about the continuing pressure on both recent and longtime homeowners to support the rising cost of public services."

   

• HUD is Loaded But Won’t Lower MI

  HUD has over 3 times the amount of required reserves it needs but won’t lower MI. Why not? Probably because they’re bracing for that wave of foreclosures we’ve been talking about over here at the NREP for months now. It’s all coming to a head and there’s going to be some real damage to the […]

  The post HUD is Loaded But Won’t Lower MI appeared first on National Real Estate Post.

• Pandemic Threatens Women's Growing Homeownership Rates

  After years of gains in educational attainment, employment, and wages, women have increased their rates of both homeownership and headship (the number who are heads of households). Now the Urban Institute (UI) says the pandemic may have put those advances at risk. Jung Hyun Choi, Laurie Goodman, and Jun Zhu write in UI's Urban Wire blog that 30 years ago a male partner in married, heterosexual households was generally the main breadwinner and considered the household head. Then, between 1990 and 2019, as the marriage rate declined, the share of households headed by single women increased from 17.6 percent to 22.6 percent. It is also common to see women heading married two-earner households and those where this is true increased 24.3 percentage points over that same period to 46.1 percent in 2019. Women head up 52.5 percent of married Black households. Combining these changes, women now head half of all households, up from 32.5 percent in 1990 and 60 percent of Black households.

• People Are Finally Starting to Think About Selling Homes Instead of Just Buying Them

  Consumer attitudes perked up in March, sending the Fannie Mae Home Purchase Sentiment Index (HPSI) up 5.2 points compared to February. The company said four of the HPSI's components rose during the month, taking the index to 81.7.

  The percentage of respondents who say it is a good time to buy a home rose to 53 percent from 48 percent and there was a 3 point decline in those who viewed the timing as bad. This left a net of 13 points, an increase of 8 points for the month but 7 points below the level a year earlier.

  Attitudes about selling a home increased even more. Sixty-one percent said it was a good time, up from 55 percent in February while the percentage who say it's a bad time dropped from 35 percent  to 28 percent. As a result, the net share of those saying it is a good time to sell increased 13 percentage points month-over-month and 17 percent since March 2020.

• CFPB Kicks Forbearance Down the Road 6 Months

  In an effort to stave off the pending forbearance/foreclosure crisis we’re facing, the CFPB has decided it’s best to kick the can down the road yet another 6 months. This so probably a very good idea considering there isn’t any real plan in place on how to handle millions of families and mortgages that are […]

  The post CFPB Kicks Forbearance Down the Road 6 Months appeared first on National Real Estate Post.

• Despite Pandemic, Homeowners View Housing as a Good Investment

  Fannie Mae says results from its fourth quarter 2020 National Housing Survey show that consumers continue to view homeownership as a good investment. Respondents were asked about various investment types, including stocks, bonds, homes, and savings accounts. Seventy-five percent of respondents indicated that homes are a "safe" investment, ranking just slightly below a savings/money market account. Additionally, 73 percent of consumers felt that investing in a home has "a lot of potential." Only 63 percent felt that way about owning stocks. The report, written for the company's Perspectives blog by Mark Palim, Vice President and Deputy Chief Economist and Rachel Zimmerman, Market Research Advisor and National Housing Survey Lead, says the recent single family housing market has been especially strong. As of Q4 2020, home prices were up by double digits and existing home sales were 20 percent higher year-over-year.  

   

• Realtors Say Staging a Home Increased Offered Prices, Cut Marketing Time

  Does staging really work? That was among the home buying and selling topics covered in a new survey from the National Association of Realtors® (NAR) and the answer appears to be "yes." Eight-two percent of buyers' agents said home staging made it easier for a buyer to visualize the property as a future home. Staging also appears to increase how much buyers were willing to spend for a property. Twenty-three percent of buyers' agents said that home staging raised the dollar value offered between 1 percent and 5 percent compared to similar homes on the market that hadn't been staged. The response from sellers' agents was nearly identical, with 23 percent reporting a 1 percent to 5 percent price increase on offers for staged homes and 18 percent ellers' agents putting the increase between 6 percent and 10 percent. None of the agents for sellers reported that home staging had a negative impact on the property's dollar value and 31 percent said that home staging greatly decreased the amount of time a home spent on the market.

   

• Mortgage App Volume Declines, Refinancing Down 30 Percent

  Mortgage application volume declined for the fifth straight week during the period ending April 2, and by the largest amount over that period. The Mortgage Bankers Association said its Market Composite Index fell by 5.1 percent on a seasonally adjusted basis from the previous week and by 5.0 percent before adjustment. The Refinance Index was down 5 percent compared to the previous week and was 20 percent lower than the same week one year ago. The refinance share of mortgage activity was 60.3 percent  compared to 60.6 percent the previous week. The seasonally adjusted Purchase Index decreased 5 percent as well and the unadjusted index was 4.0 percent lower. Purchases, however, were 51 percent higher than the same week in 2020.

• Real Estate Wars Filled with Hostile Take Overs

  Today we have Tristan Ahumada on the show talking about a bunch of really interesting things. You may not be aware of all the crazy Real Estate Hostile Take Overs that are going on out there. And, we talk about a few other things as well. So tune in and enjoy, and please leave us […]

  The post Real Estate Wars Filled with Hostile Take Overs appeared first on National Real Estate Post.

• February's Single-Family Home Price Growth Set New Records

  Stories of rising home prices are no longer breaking news, but still, they are pretty remarkable. Black Knight, in its latest Mortgage Monitor, says the 12.3 percent growth in the selling price of single family homes in February was the highest such annual home price growth of any month on their records dating back to 1992. The overall price growth during the month was 11.6 percent, dragged lower by a 6.4 percent growth rate in condo prices. The company says this discrepancy bears watching. Condos typically appreciate more quickly when the housing market heats up, as it certainly has over the last year, and decelerate more quickly when markets cool. This reversal of historical patterns may suggest underlying weakness in the condo market. Perhaps this is driven by the pandemic and fears of living in close quarters.

• Home Price Surge Seen Slowing After Record Run

  CoreLogic's February Home Price Index (HPI) essentially echoed that the price report last week from Black Knight. The company said that its index recorded its highest annual growth since 2006 at 10.4 percent. Demand continues to clash with an historically low supply creating affordability challenges, especially as mortgage rates also begin to rise. The HPI increased 1.2 percent on a month-over-month basis. Those challenges have begun to push homebuyers away from high-cost metro areas as the spring homebuying season looms. The number of homebuyers in the top 10 metros with the largest net out-migration - including West Coast metros like Los Angeles, San Francisco, and San Jose - who chose to move to another metro increased to 21 percent in 2020, up 3 percentage points from 2019. This sentiment is reflected in CoreLogic's recent consumer survey, which found that 57 percent of current non-homeowners on the West Coast feel the home options in their area are not at all affordable.

   

• CFPB – Wave of Foreclosures at Hand

  The CFPB is warning mortgage servicers to prepare to handle what could be a wave of foreclosures if they don’t take care of millions of families. This could be a huge mess and the CFPB is saying being unprepared is no excuse. This may be one of those “grab the popcorn and pull up a […]

  The post CFPB – Wave of Foreclosures at Hand appeared first on National Real Estate Post.

• Residential Outlays Dominate Construction Spending

  Construction spending, public and private, was at a seasonally adjusted annual rate of $1.517 trillion in February. The U.S. Census Bureau said this was down 0.8 percent from the January rate of $1.529 trillion but was 5.3 percent higher than spending in February 2020. On a non-adjusted basis there was a total of $105.612 billion worth of construction put in place during the month, nearly half of which was spent in the residential sector. For the year-to-date (YTD) overall spending has totaled $213.204 billion, a 4.9 percent increase over the $203.215 billion spent during the first two months of 2020. Privately funded construction was at a seasonally adjusted annual rate of $1.166 trillion, down 0.5 percent month-over-month from $1.172 trillion in January. Spending was 7.1 percent above the rate in February 2020.

• Forbearances Decline but CFPB Warns Servicers to Prepare for Default Surge

  While the number of mortgages in forbearance continues to fall, Black Knight said there was a 33,000 reduction over the last week and 172,000 homeowners have exited the various programs over the last month, 2.54 million borrowers remain in forbearance. This is 4.8 percent of all those with a mortgage. Now the Consumer Financial Protection Bureau (CFPB) is alerting mortgage servicers to prepare for what may be a wave of avoidable foreclosures as forbearances come to an end in the fall and the current foreclosure moratoriums expire. While the GSEs (Fannie Mae and Freddie Mac) and Ginnie Mae, which is responsible for VA and FHA loans, have provided several options for borrowers to pay back any past due mortgage payments that have accrued during the pandemic, many homeowners will need help from their servicers. CFPB warns them that they need to dedicate sufficient resources and staff starting now to ensure they are prepared for any surge.

• CFPB Frowns on Appraisal Waivers

  The CFPB is back with a renewed sense of enforcement. There are several areas that they’re looking at, one of them being Appraisal Waivers. They don’t like them and they’ve let the GSE’s know so. So, with that in mind, you may be seeing fewer appraisal waivers going forward. There’s other things that they’re going […]

  The post CFPB Frowns on Appraisal Waivers appeared first on National Real Estate Post.

• Add 2 Year Rental Ratings on Credit Reports for Increased FICO – Huge

  This is huge. I know you’ve heard of rental ratings getting on credit reports before, but they didn’t make it to the mortgage credit report and FICO, which means they didn’t impact DU/LP. That was something called “self reporting” which doesn’t make it through the levels of FICO required to impact DU/LP. With Jeanne Kelly […]

  The post Add 2 Year Rental Ratings on Credit Reports for Increased FICO – Huge appeared first on National Real Estate Post.

• FHA Will Keep Mortgage Insurance Fund Rates Stable

  The newly installed Secretary of the Department of Housing and Urban Development (HUD) released her first quarterly report on the agency to Congress on Tuesday. A key point regarded the Federal Housing Administration's Single Family Mutual Mortgage Insurance (MMI) Fund. Secretary Marcia L. Fudge said the fund has remained resilient despite the financial challenges faced by homeowners with FHA-insured mortgages in 2020 and the agency has no near-term plans to change MMI's current premium pricing. She explained that the fund stands at more than $80 billion, still well above the 2 percent minimum capital reserve required. Through the pandemic, the FHA portfolio has experienced increased levels of seriously delinquent loans and a heightened level of loans in forbearance, but Fudge said HUD has continued to monitor mortgage performance trends within the FHA portfolio, particularly related to those homeowners who are struggling financially because of the pandemic.

   

• Uh, these Forbearance Stats are Shocking.

  How about a little comparison between the 2008 melt down to the 2020 pandemic with respect to mortgages that are not being paid in the form of forbearance’s. You’re going to be shocked at what you see. It’s nothing less than mind-blowing how many people are in some form of forbearance right now. This surely […]

  The post Uh, these Forbearance Stats are Shocking. appeared first on National Real Estate Post.

• New MUD Program Awesome for Vets and Realtors

  This is part 2 of a show we did last week about the Military Urban Development Initative or MUD. Last week we didn’t have all the details, but on today’s show we interview 2 of the key players of the program and wow, I have to tell ya, this is an amazingly awesome program for […]

  The post New MUD Program Awesome for Vets and Realtors appeared first on National Real Estate Post.

• January's Double-Digit Home Price Gains Continue to Break Records

  The S&P CoreLogic Case-Shiller home price indices and the Federal Housing Finance Agency's (FHFA's) House Price Index (HPI) all show that the growth of home prices continued to accelerate through January, even as interest rates began to creep higher. Case-Shiller's National Home Price Index, which covers all nine U.S. census divisions, rose 11.2 percent compared to its January 2020 level. The annual gain in December was 10.4 percent. The 10-City Composite Index posted an annual increase of 10.9 percent, a full percentage point above its 12-month gain the previous month. The 20-City Composite, with Detroit's data now included in the calculations, was up 11.1 percent compared to January of last year. Annual appreciation was 10.2 percent in December.

   

• Even With Recent Declines, Purchase App Volume is Still Outpacing 2020

  Mortgage Application volume continued to trend down during the week ended March 26. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, declined 2.2 percent on a seasonally adjusted basis from the previous week and was down 2 percent on an unadjusted basis. It was the tenth time the index has declined in the 13 weeks since 2021 began. The Refinance Index decreased 3 percent from the previous week and was 32 percent lower than the same week one year ago. Refinancing, however, still accounts for the lion's share of applications, 60.6 percent during the week, down only slightly from the week ended March 19. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. Unadjusted, the Index was down 1 percent and was 39 percent higher than the same week one year ago.

   

• Pending Home Sales Take a Big Hit, Back to Pre-Covid Levels

  February's pending home sales suffered a double digit month-over-month decline in February and fell below the pace a year earlier for the first time in eight months.  The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) dropped from 122.8 to 110.3, a decline of 10.6 percent from January and 0.5 percent compared to February 2020. The PHSI reflects contracts to purchase existing single-family houses, townhomes, condos, and cooperative apartments and is a leading indicator of existing home sales over the following one to two months. The PHSI has been trending down since peaking at 130.3 in August and analysts were anticipating further weakness, although the size of February's decline was not reflected in their forecasts. The consensus of those polled by Econoday was a 3.0 percent loss while Trading Economics, and Market Watch each posted a consensus of -3.1 percent.

   

• States Vary Widely in Housing Stock Age

  The age of the U.S. housing stock is, to a certain extent, a reflection of the decline in new home construction since the onset of the housing crisis. However, Na Zhao, in a blog post in the National Association of Home Builders' (NAHB's) Eye on Housing blog, relates housing ages to recent population growth and says it is also an important indicator for the remodeling market and represents an investment opportunity for homeowners. Zhao analyzed the data from the most recent (2019) American Community Survey (ACS) from the U.S. Census Bureau and found the median age of owner-occupied homes nationwide was 39 years. This age varies considerably by state. The oldest homes are found in the Northeast, with New York containing the oldest owner-occupied homes at a median age of 60 years. Massachusetts is second at 56 years, and Rhode Island's homes are a median of 55 years. Half of all owner-occupied houses in the District of Columbia were built more than 79 years ago, but the author points out that the District is generally not a representative market, as it is a smaller urban area.

   

• Refis Constituted Three-Quarters of Freddie Mac's February Volume

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 17.7 percent in February compared to a 16.1 percent gain in January. The portfolio balance at the end of the period was $2.818 trillion compared to $2.777 trillion the prior month and $2.350 trillion a year earlier. Purchases and Issuances totaled $116.362 billion, and Sales were ($1.174) billion. The January  numbers were $120.128 billion and ($.588) billion, respectively. Single-family refinance loan purchase and guarantee volume was $85.0 billion in February compared to $84.56 billion in January, representing a 77 percent share of total single-family mortgage portfolio purchases and issuances, up from 73 percent the previous month.

• 1.2 Million Can Still Save $745 per Month with Refi

  There’s still a lot of refinancing that can get done, literally millions of people can still save a ton of money even at current interest rates. On the purchase side however, although 31% of all homes sold year of year are FTHB’s, that number is going to go down significantly. But don’t let that discourage […]

  The post 1.2 Million Can Still Save $745 per Month with Refi appeared first on National Real Estate Post.

• Borrowers are Exiting Forbearance at an Increased Rate

  For the moment at least, the number of loans in forbearance are heading downhill and picking up speed. Black Knight says the number of active plans declined by 135,000 over the past month (-5 percent), 19,000 (-0.7 percent) occurred in the last week alone. As of March 23, there were 2.57 million loans remaining in forbearance, 4.9 percent of all active mortgages. The company says this month's rate of decline is the strongest since late November. Servicers have worked through 1.2 million plans that entered the month with expirations scheduled at the end of the month. With eight days left in the month when Black Knight compiled this week's data, there were still 46,000 loans to process, providing the potential for additional improvement in the next few weeks.

   

• Bad Hidden Fannie Freddie Changes

  You already know about Fannie and Freddie bumping pricing on investor and 2nd home loans and the fact that they are limiting their entire portfolio for these loans to 7%. What isn’t being talked about is they are limiting their portfolio on other loans the meet 2 of 3 criteria. The criteria is a big […]

  The post Bad Hidden Fannie Freddie Changes appeared first on National Real Estate Post.

• Will UWM Policy Violate Fair Lending?

  Today we interview David Stevens about an article he wrote regarding the UWM/Rocket battle and UWM’s policy that bans and/or fines their brokers from doing business with Rocket Pro TPO or Fairway. In his article he makes a good point on how this can negatively impact underserved customers and communities. He also talks about how […]

  The post Will UWM Policy Violate Fair Lending? appeared first on National Real Estate Post.

• Over 2 Million LIBOR ARMs Need Refinancing

  There’s still some money to be made out there when it comes to refinancing. The exact number of which we’re not perfectly sure of, but we’re betting is about 2 million loans. That’s a lot of loans! There’s plenty for everyone! You just have to be the one to get the word out to these […]

  The post Over 2 Million LIBOR ARMs Need Refinancing appeared first on National Real Estate Post.

• February's Shortened Calendar Likely Responsible for Delinquency Increase

  Mortgage delinquency rates rose in February, ending eight straight months of recovery from the spike that followed the onset of the pandemic. Black Knight, in its first look at February loan performance data, said the national mortgage delinquency rate, the percentage of all mortgages that were 30 days or more past due, grew to 6.0 percent from January's 5.85 percent rate. Delinquency numbers include loans in both forbearance and foreclosure. The increase was primarily seen in early-stage delinquencies, while the number of loans 90 or more days past due saw a modest decline. The company said such upticks are not unusual in months that end on a Sunday, cutting the days in which payment's can be processed. Given that it was also the year's shortest month, the calendar may account for much of the increase.

• February New Home Sales Decline Sharply

  The two-month rally in new home sales ended abruptly and definitively in February. The U.S. Census Bureau and Department of Housing and Urban Development said sales of newly constructed single-family homes dropped by 18.2 percent to a seasonally adjusted annual rate of 775,000 units but remained 8.2 percent higher than sales in February 2020. The January estimate, originally reported at 923,000 annualized units, was revised to 948,000. February's number was 100,000 below the consensus estimate of analysts polled by Econoday. Their projections ranged from 825,000 to 970,000.

   

• Purchase Application Volume up for Fourth Consecutive Week

  Mortgage application volume declined for the third consecutive time during the week ended March 19 as refinancing continued to retreat. The Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey revealed a 2.5 percent decrease in the seasonally adjusted Market Composite Index, a measure of mortgage loan application volume. The Index was down 2.0 percent before adjustment. The Refinance Index declined 5 percent from the previous week and was 13 percent lower than the same week one year ago. Refinancing accounted for 60.9 percent of the week's applications compared to 62.9 percent during the week ended March 12. The Purchase Index increased 3 percent on both an adjusted and unadjusted basis. It was 26 percent above its level during the same week in 2020.

   

• Mortgage Profits Decline but Remain Close to Record Levels

  Mortgage originators' profits remained strong in the fourth quarter of 2020, although they were down considerably from the previous period. The Mortgage Bankers Association's (MBA's) Mortgage Bankers Performance Report says that independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a net gain of $3,738 on each loan they originated during the quarter. In Q3 their reported profits were $5,535 per loan. The average pre-tax production profit was 137 basis points (bps) on an average loan size of $287,131 (a record high) compared to the third quarter profit of  203 basis points on an average origination balance of $282,659. In the fourth quarter of 2019 the pre-tax profit was 46 basis points. MBA puts the average pre-tax profit, from the third quarter of 2008 to the most recent quarter, at 53 basis points.

   

• This is the Kind of MUD Slinging We Can Get Behind

  Today we talk about a new program that’s coming out, primarily for our military service people, but not just them, that can bring some affordable inventory back to the market for our entry level buyers. Sounds great right? Well, heck it just might be great, we’ll just have to see how it goes. Any news […]

  The post This is the Kind of MUD Slinging We Can Get Behind appeared first on National Real Estate Post.

• Fannie Forecast: Home Sales Will Weather the Rising Rate Environment

  Fannie Mae made a few modest changes to its economic projections this month as consumer spending in January was above expectations and interest rates rose. The company's Economic and Strategic Research (ESR) Group expects the growth in GDP in 2021 to be 6.6 percent rather than its prior 6.7 percent forecast and upgrades 2022 to 3.0 percent from 2.8 percent.  Compared to last month's forecast, they also expect a modestly stronger consumer recovery, but a more drawn-out expansion of government expenditures and a modestly slower pace of private investment spending. A downside risk to the forecast is the possibility of a more resistant virus variant emerging, leaving the future path of the virus a near-term risk. The greatest uncertainty, however, is how fast social distancing restricted activities recover. If businesses and consumers are reluctant to resume pre-pandemic activities, the expected strong 2^nd and 3^rd quarter growth may not materialize. On the upside, household savings are extremely high; checking accounts alone held $3.2 trillion in Q4 2020, $2 trillion more than the pre-COVID baseline. If consumers spend down these balances as well as their stimulus check, consumer spending might be greater than Fannie Mae's robust projections.

   

• Home Sales Fall Short, But Remain Well Above The Pre-Pandemic Pace

  Sales of existing homes fell sharply in February after two months of modest gains. The National Association of Realtors® said pre-owned single-family houses, townhouses, condominiums, and cooperative apartments sold at a seasonally adjusted annual rate of 6.23 million units. This was down 6.6 percent from January's sales rate of 6,660,000 units. Sales remain 9.1 percent higher than the 5.70 million unit rate posted in February 2020. 

  Single-family home sales were also down 6.6 percent to an annual rate of 5.52 million from 5.91 million in January and condominium and co-op sales declined by 6.7 percent to 700,000 units. Sales of both housing types remained well above their February 2020 levels, single-family sales by 8.0 percent while condo/co-op sales were 18.6 percent higher.ercent to $493,300.

• Payment Concerns Ebbing for Homeowners, Renters --Survey

  A new Freddie Mac survey found that both homeowners and renters are still concerned about their ability to pay their mortgage or their monthly rent as the pandemic wears on. but those concerns have lessened since last fall. The COVID-19 Tracking Poll has contacted over 1,000 respondents on an irregular basis over the past year. Two thirds are homeowners, the remainder are renters.

  Over the nine months the survey was conducted in 2020, more than half of renters were concerned about making their monthly payments, fluctuating between 54 percent in April to 71 percent in November. Renter concern began to ebb in December to 67 percent and dropped further to 63 percent last month. Homeowners concerns over mortgage payments were at a low of 33 percent in June, rising to a high of 55 percent in October. By year end, 45 percent of respondents were expressing concern and in February it improved to 41 percent.

• Planting Seeds for Next Refi Boom

  Today we interview Barry Habib on what’s going on with interest rates. Yes you’re seeing them rise and they’re probably going to continue. But there may be light at the end of the tunnel for interest rates and there’s always other ways to make it rain in the mortgage industry. Tune in today to hear […]

  The post Planting Seeds for Next Refi Boom appeared first on National Real Estate Post.

• With Forbearance Periods Ending, Corelogic Looks at Options for Borrowers to Exit

  The number of loans in forbearance experienced the largest weekly decline since early January as servicers reviewed the hundreds of thousands that are due to expire at the end of March. Black Knight's weekly report on the COVID-19 related programs noted a 16,000 loan decline in plans during the week ended March 16. At the beginning of this month there were 1.2 million homeowners with plans due to expire at the end of March; 620,000 of those expirations remain. At the end of the reporting period there were 2.59 million loans in active plans, 4.9 percent of the mortgages in servicer portfolios. Black Knight said it was the first time since April 2020 that there were fewer than 2.6mm forborne loans. A 13,000 loan decrease in Fannie Mae and Freddie Mac loans and 8,000 in FHA and VA portfolios were offset by a 5,000 loan increase in loans serviced for bank portfolios and private label security investors.

• The Game Didn’t Change, the Place Did

  Today we interview Alec Hanson with loanDepot. I found it very interesting that a big-wig SVP with such a large company was so engaged with video on social media. So I got him on the show to talk about it. He has some really good points that I think will be very inspirational for you […]

  The post The Game Didn’t Change, the Place Did appeared first on National Real Estate Post.

• Builder Survey Predicts a Dip in New Home Sales

  The Mortgage Bankers Association (MBA) is predicting a slowdown in new home sales when the Census Bureau releases its statistics next week. MBA's Builder Application Survey (BAS) data for February 2021 shows mortgage applications for new home purchases increased 9.2 percent compared to a year ago but were down by 9 percent year-over-year. This change does not include any adjustment for typical seasonal patterns. Based on these applications and other data, MBA estimates that new single-family homes were selling at a seasonally adjusted annual rate of 748,000 units in February. This is a decline of 17.3 percent from the January pace of 905,000 units.  On an unadjusted basis, MBA estimates the month's sales numbered 65,000 units, a 5.8 percent decrease from 69,000 the prior month. 

   

• Refinance Activity Broke an Almost 9-Year Record in February

  It hasn't exactly been a scramble, but homeowners have stepped up their refinancing activity over the last two months as they saw interest rates begin a slow but steady march higher.  The February Origination Insights Report from ICE Mortgage Technology shows the refinancing share of all loans originated during the month moved 1 point higher to 68 percent. This is an 8 point increase from December's 60 percent share. The conventional loan share of refinancing is up 7 points over the last two months. ICE says that a 68 percent refinancing share is a figure not seen since December 2012. The 30-year rate for all closed loans and conventional loans rose 1 basis point each to 2.89 percent and 2.92 percent, respectively compared to the prior month. Thirty-year rates for FHA loans held steady at 2.86 percent and VA loans were unchanged at 2.60 percent. 

   

• Pandemic Causes New Construction Costs to Soar

  The COVID-19 pandemic has obviously caused lots of problems for everyone. In the mortgage and real estate industry, we did great when it comes to interest rates but not so much when it comes to housing inventory. When we’re low on inventory we often look to new home builders for help. Not so much this […]

  The post Pandemic Causes New Construction Costs to Soar appeared first on National Real Estate Post.

• Tips on Getting Buyer Offers Accepted

  With the lack of inventory is super tough to get offers accepted. There are so many offers coming in on each listing, we can certainly use any help we can get when it comes to getting our offers looked at and accepted. Carl White and his team spent some time putting together 10 tips that […]

  The post Tips on Getting Buyer Offers Accepted appeared first on National Real Estate Post.

• Lumber Prices and Rising Rates Take a Toll on Builder Confidence

  Escalating costs took a toll on builder confidence this month. The National Association of Home Builders (NAHB) said its Housing Market Index dipped two points from its February level. At 82 it is down 8 points from the all-time high it established last November. NAHB's chief economist Robert Dietz said, while there is still a high volume of buyer traffic and strong consumer demand, rising lumber prices, especially for softwood lumber and other material costs as well as delivery delays, have pushed builder confidence lower. Lumber prices are up by about 200 percent since April, driven by shortages and high demand. This his added about $24,000 to the price of a new home at a time when interest rates are also rising.

   

• Refi Demand Plummets to Six-Month Low

  Mortgage application volume declined again during the week ended March 12, as refinancing deflated in the face of rising interest rates. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decreased 2.2 percent on a seasonally adjusted basis from one week earlier and was down 2 percent on an unadjusted basis. The Refinance Index decreased 4 percent from the previous week and was 39 percent lower than the same week one year ago. The index has declined in all but three weeks since the beginning of 2021 and is now 39 percent lower than during the same week in 2020. The refinance share of applications declined to 62.9 percent of total applications from 64.5 percent the previous week.

   

• Construction Starts and Permits Took a Double-Digit Hit in February

  It looked last month as though residential construction was about to take off. While starts were down in January, permits surged by 10.4 percent. Builders apparently had second thoughts in February as both measures fell by double digits. The U.S. Census Bureau and Department of Housing and Urban Development said permits for construction of residential units were at a seasonally adjusted rate of 1,682,000. This is 10.8 percent below the revised (from 1,881,000) rate in January of 1,886000. The February rate was still a 17.0 percent improvement on the permitting rate a year earlier.

   

• Millennials Make up Largest Share of Buyers for 8th Consecutive Year

  Whether or not it was another biproduct of the pandemic, The National Association of Realtors® (NAR) said the popularity of multigenerational homes increased last year. Homes that will house adult siblings, adult children, parents, or grandparents were purchased by 18 percent of homebuyers between the ages of 41 to 65. Those aged 75 to 95 were the second most likely to purchase a multigenerational home. This is among the key findings of NAR's annual Home Buyer and Seller Generational Trends Report derived from a survey of persons who had purchased a home over the prior 12 months.

   

• How Remote Workers Could Eventually Disrupt Housing Market

  A study by ApartmentList has identified a new category of workers, arising, at least in part, out of the pandemic. Lynn Pollack, writing in GlobeSt, says this "untethered class" hold remote types of jobs and have little reason to stay put. They have a median age of 32 and are "on the precipice of settling down." They are currently renting, living alone or with a similarly untethered partner, have no school-aged children and are likely to live in a state other than where they were born. ApartmentList suggests that there may be 8.7 million untethered workers, constituting 5.6 percent of the American workforce. The highest share, 13.5 percent, live in San Francisco, followed by San Jose and other high housing cost cities like Los Angeles, New York, Seattle, and Boston.

   

• Forbearances Reach Their Lowest Levels in Almost a Year

  Black Knight notes a large improvement in forbearance statistics during the week ended March 9. The number of loans in active plans dropped by 77,000 over the week, the largest single week decline since early January, and lowered the number of plans to 2.6 million, a -2.9 percent change. At the end of the reporting period the remaining loans represent 4.9 percent of the nation's 53 million mortgages and an outstanding principal balance of $515 billion. It was the first time since April 2020 that fewer than 5 percent of U.S. mortgages were in forbearance.

• Foreclosure Rise Despite COVID Moratoriums

  While the federal moratoriums are keeping the numbers low, ATTOM Data Solutions reports that 16 percent more residential properties received a foreclosure filing in February compared to a month earlier. The 11,281 properties that were subject to a default notice, scheduled auction or a bank repossession was down 77 percent year-over-year. Nationwide one in every 12,182 housing units were the recipient of a filing in February 2021. "Extensions to the Federal Government's foreclosure moratorium and CARES Act mortgage forbearance programs continue to keep foreclosure activity historically low," said Rick Sharga, executive vice president of RealtyTrac, an ATTOM Data Solutions company. "These government actions, and the efforts of lenders and mortgage servicing companies, have helped millions of homeowners avoid foreclosure during a year-long global pandemic and a recession that resulted in 22 million lost jobs."

   

• Home Equity Gains are Breaking 8 Year Records

  Homeowners' housing wealth grew by record numbers in the fourth quarter of last year. CoreLogic, in its Home Equity Report for the period, says the average equity in a U.S. home increased 16.2 percent since the fourth quarter of 2019, the greatest increase in seven years.  Homeowners gained an average of $26,300 in equity and the aggregate increase across the 62 percent of U.S. homes with mortgages was $1.5 trillion. CoreLogic's chief economist Frank Nothaft said, "Compared with a year earlier, home prices in December 2020 were up sharply - 9.2%, according to the CoreLogic Home Price Index - boosting the amount of home equity for the average homeowner with a mortgage to more than $200,000. This equity growth has enabled many families to finance home remodeling, such as adding an office or study, further contributing to last year's record level in home improvement spending."

   

• 2nd Home and Investor Pricing Going UP NOW

  New LLPA’s are going into effect on April 1 (which means they are already being priced in with most lenders) for 2nd homes and investment properties. This from Fannie Mae in a effort to keep the percentage of these property types to a minimum in their portfolio. This could mean significantly higher rates for these […]

  The post 2nd Home and Investor Pricing Going UP NOW appeared first on National Real Estate Post.

• Up to 60% of Buyers are Priced Out of Current Home Market

  Roughly 60 percent of U.S. households are effectively priced out of the new home market according to 2021 estimates from the National Association of Home Builders (NAHB). Na Zhao, writing in a pair of posts in NAHB's Eye on Housing blog says 75.1 million households are unable to qualify for a mortgage to purchase a median priced new home under standard underwriting criteria and, if the median price of a home increases by $1,000, another 154,000 households would join the priced-out list. Further, Na Zhao used a 2.8 percent interest rate in the calculations, and the 30-year fixed rate is now over 3.0 percent.

• Getting a Mortgage Isn't Getting Any Easier

  Access to mortgage credit remained unchanged in February after making modest gains over the previous four months. The Mortgage Bankers Association said its Mortgage Credit Access Index, was remained at the January level of 124.6. A lower score indicates a tightening of mortgage credit standards. The index was benchmarked to 100 in March 2012. The MCAI had dropped from 181.3 in February 2020 down to 118.6 by September as the financial impacts of the pandemic became apparent and mortgage delinquencies rose. The index became to increase in October although the recovery has been both slow and uneven.

• Fannie Warns Lenders on Investment Properties and 2nd Homes

  Fannie Mae has sent lenders an advanced notice that additional risk criteria is coming for loans it acquires from lenders.  Lender Letter 2021-08 lays out changes mandated by amendments to the Senior Preferred Stock Purchase Agreement (PSPA) between the Federal Housing Finance Agency (FHFA) and the Department of the Treasury in mid-January. The letter focuses on the new 7 percent limitation on acquisitions of loans secured by second homes or investment properties.  All limits are measured as 52-week moving averages. As the investor and second home share of acquisitions is already above 7 percent and has been since 2013, this new rule will certainly have an impact.

   

• REX Sues Zillow and NAR Together

  So now we’ve Zillow AND the NAR getting sued by REX together, at the same time, for the same thing. How fun is that?!? You have to admit that the real estate and mortgage industries are full of surprises over the past couple of year. Never a dull moment right? Well, tune on in and […]

  The post REX Sues Zillow and NAR Together appeared first on National Real Estate Post.

• CoreLogic Calls 2020 a Rocky Year for Loan Performance

  CoreLogic's December 2020 Loan Performance Insights report was upbeat, citing positive signs of recovery after a rocky year in which a pandemic and related job losses sent delinquency rates skyrocketing. Last year started with the lowest share of loans 30 or more days past due since the company began collecting the data in 1999. Then, as COVID-19 spread along with shelter-in-place directives, the rate doubled, going from 3.6 percent of all mortgages in March to 7.3 percent. As time passed, those early stage delinquencies transitioned into the serious category of 90 or more days past due, quadrupling the size of that bucket by August to 4.3 percent.

   

• It’s All a Bunch of Blurred Lines Out There.

  Blurred lines. It’s all bunch of blurred lines. Everybody is trying to do everything. Where does it end? Should it end? Maybe this is just the way it is going forward from here on out. Who cares? Just get some deals in the door and take care of your families! Here it is! The Holy […]

  The post It’s All a Bunch of Blurred Lines Out There. appeared first on National Real Estate Post.

• Rising Rates Hampered Refinance Activity This Week

  Mortgage application volume turned lower again this week after longer term rates rose again, pulling more steam out of refinancing. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decreased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index was down 1 percent compared with the previous week.  The Refinance Index fell 5 percent from the previous week and was 43 percent lower than the same week one year ago. Refinancing still made up the majority of applications however, a 64.5 percent share compared to 67.5 percent of the volume a week earlier. The seasonally adjusted Purchase Index rose 7 percent from one week earlier and was 9 percent higher on an unadjusted basis. Purchase volume was 2 percent greater than the same week one year ago.

• The Broker Addendum Heard Round the World

  Well, we’re going to talk about it even though we know that somehow, some way, we’ll get beat up for it. Oh well, comes with the territory on our end. Anyway, what’s your thoughts on the UWM decision? We’re perplexed as to why Matt would do this. UWM has such a great reputation within the […]

  The post The Broker Addendum Heard Round the World appeared first on National Real Estate Post.

• February Homebuying Sentiment Declines, Despite Stronger Job Market

  Fannie Mae's Home Purchase Sentiment Index (HPSI) declined slightly in February as did four of its six components. The Index, based on a sample of answers to the company's monthly National Housing Survey, dipped 1.2 points to 76.5. It is down 16 points from its level in February 2020. Consumer sentiment soured significantly on the question of whether it is a good time to buy a house. Forty-eight percent of respondents called it a good time and 43 percent a bad time for a net positive of 5 percent. This is down 10 points compared to January and 23 points lower year-over-year. Attitudes toward selling a home fared a little better. Those who say it is a good time to sell decreased from 57 percent in January to 55 percent, while the percentage who say it's a bad time to sell increased from 33 percent to 35 percent. This left a net 20 percent who said it was a good time, a 4 percent downturn for the month and 25 percent lower than a year earlier.

   

• Black Knight's Deep Dive Into Equity, Forbearance, and the Future Rate Environment

  Last year was a record setting one when it comes to mortgage origination according to Black Knight's January Mortgage Monitor. It puts the total volume of originations during 2020 at $4.3 trillion, the highest in the company's records. Refinance originations, to no one's surprise were also at an all-time high of $2.8 trillion and $1.5 trillion in purchase loans was originated, the largest annual volume since 2005. The fourth quarter also made history with all-time single quarter highs for purchase mortgages at $346 billion and refinancing at $869 billion. In total, $1.3 trillion worth of mortgages were originated during the quarter.

   

• CFPB Extends Compliance Date for New QM Rule

  The Consumer Financial Protection Bureau (CFPB) has proposed to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from July 1, 2021 to October 1, 2022. The rule, proposed last June, is designed as a replacement for the so-called GSE patch. CFPB says it is proposing the extension to ensure that homeowners struggling with the financial impacts of the COVID-19 pandemic have the options they need. As originally written at the time of the housing crisis, the Ability to Repay/Qualified Mortgage Rule (ATR-QM Rule) provided a safe harbor to protect lenders from lawsuits charging them with failing to appropriately quantify a borrower's ability to repayment a loan. In general, the QM rule requires that a loan comply with prohibitions on certain loan features, points, and fee limitations. It also requires that a borrower's a debt-to-income (DTI) ratio does not exceed 43 percent and that creditors "calculate, consider, and verify debt and income for purposes of determining the consumer's DTI ratio using the standards contained in Appendix Q of Regulation Z." 

   

• Rate of Forbearance Improvement Slows as March Expiration Looms

  As Black Knight has repeatedly predicted, end of February expirations drove the number of mortgage loans in forbearance lower this past week. There was a decline of 22,000 loans in forbearance plans during the week ended March 2, an 0.8 percent decline. Black Knight says that there are still more than 100,000 loans in plans that expired at the end of last month that may be under review by servicers for extension or removals. Despite weekly improvement, the monthly rate of decrease slowed from 2.0 percent to 1.3 percent. At the end of the reporting period, the company estimates that 2.69 million homeowners remain in forbearance plans, 5.1 percent of those with a mortgage loan. The largest improvement over the past week was in loans serviced for FHA and the VA. They declined by 13,000 to 1,113 million loans or 9.2 percent of those portfolios. Forborne loans serviced for Fannie Mae and Freddie Mac (the GSEs) fell by 8,000 to 895,000 or 3.2 percent of the total. Those serviced for bank portfolios or investors in private label securities (PLS) improved by a modest 1,000 loans to 677,000 or 5.2 percent.

   

• UI Urges Abandoning New Fannie/Freddie Amendments

  A new policy paper from the Urban Institute (UI) looks at the recent amendments to the senior preferred stock purchase agreement (PSPA) agreed to by outgoing Treasury Secretary Steven Mnuchin and Mark Calabria, Director the Federal Housing Finance Agency (FHFA) on January 14, 2021. The PSPA governs Treasury's financial relationship with the GSEs Fannie Mae and Freddie Mac. The changes were intended to enable the eventual release of the GSEs from conservatorship by allowing them to build capital and provides milestones for their release. The changes also serve to constrain the GSEs' activities well after their release by putting limits on their business practices including limits on the amount of "high risk" mortgages they can purchase as well as those that finance second homes or investor properties. It also caps the use of the cash window.

   

• Barry Habib – Beware of the Death Cross!

  Obviously there’s a lot going on with the bond market these days, but were you aware of the “Death Cross”? Well, it’s real, and it’s a concern or Barry’s, so tune in and see what’s up. At the end of the day though, no matter what happens in the bond market, there is and always […]

  The post Barry Habib – Beware of the Death Cross! appeared first on National Real Estate Post.

• 4 New Origination Verticals for Loan Officers for 2021

  Today we interview Brian Covey who brings up a few new verticals that LO’s should be pursuing right now. This show should get your gears turning to hopefully motivate you to start learning and developing these new strategies. I know a lot of our originator viewers still. have their head buried in their pipelines, but, […]

  The post 4 New Origination Verticals for Loan Officers for 2021 appeared first on National Real Estate Post.

• Broker? Sick of Your LOS? Check This OUT.

  With the new URLA there is a lot of buzz right now on social media with mortgage brokers complaining about their LOS. The new PreApp1003, which is now branded as Broker+ is the most superior mobile friendly POS, LOS and CRM all in one package you’ve ever seen. This product is a game changer for […]

  The post Broker? Sick of Your LOS? Check This OUT. appeared first on National Real Estate Post.

• Housing Gettin’ Some Money – Will We See It?

  There’s some money coming to the housing industry, but will it really have any impact? You decide. Let us know in the comments. Also, did you know that, like, very few homeowners know anything about home maintenance? Could that be a marketing angle? Survey says: ?? Loan Officers. Start pursuing these 3 verticals NOW. Renovation […]

  The post Housing Gettin’ Some Money – Will We See It? appeared first on National Real Estate Post.

• Home Price Appreciation Broke an 8-Year Record in January

  CoreLogic says home prices in January were 10 percent higher than a year earlier. It was the first double digit increase in the company's Home Price Index (HPI) since November 2013. The company had reported a 9.2 percent annual increase in December. The month-over-month increase in home prices nationwide, including distressed sales, was 0.9 percent. Frank Martell, President and CEO of CoreLogic said, "Record-low mortgage rates were a significant driving force behind last year's rebound in housing market activity. However, heavy competition for the few houses on the market drove home prices to historic highs, and mortgage rates are no longer enough to sway the affordability challenges for consumers. While new construction may help balance home prices towards the end of 2021, we may expect to see demand slow in the medium-term."

   

• Refinance Volume Ramps Down on Rising Rates

  Mortgage application volume rose for the first time in four weeks during the week ended February 26, but it was only a marginal increase. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2 percent compared with the previous week. The Refinance Index was 0.1 percent higher than during the week ended February 19 and was up 7 percent from the same week in 2020. The refinance share of mortgage activity decreased to 67.5 percent of total applications from 68.5 percent. The seasonally adjusted Purchase Index increased 2 percent and was 5 percent higher on an unadjusted basis. Volume grew 1 percent compared to the same week last year.

   

• Forbearance’s can be a Tangled Web we Weave

  The forbearance issues we’re facing can go deeper with investment properties. Tune in to today’s show and let us know your thoughts on the matter. Oh what a tangled web we weave… Also, YOU CAN DO commercial loans. We’ve got you all taken care of with our new NREP Business Lending platform. Register for our […]

  The post Forbearance’s can be a Tangled Web we Weave appeared first on National Real Estate Post.

• Construction Spending Rising Twice as Fast as Expected

  Construction expenditures started 2021 displaying the same imbalance between the growth of residential and non-residential spending that had dominated much of 2020. The U.S. Census Bureau said overall spending in January was at a seasonally adjusted annual rate of $1.522 trillion, 1.7 percent higher than in December and 5.8 percent above the rate in January of last year. This more than doubled the median forecast which called for a 0.8 percent increase.

  Combined public and private spending on residential construction in January was up 21.1 percent seasonally adjusted from a year earlier.  At the end of 2020, overall spending had exceeded the prior year by 4.7 percent while residential spending was 11.8 percent higher.

  On a non-adjusted basis, total spending for the month was $106.307 billion compared to $113.334 in December and $101.121 in December 2020.

• With Protections Expiring, Millions are in Danger of Losing Their Home

  What happens to homeowners and landlords when the federal, state, and local protections put in place during the pandemic go away? The Consumer Financial Protection Bureau (CFPB) is warning that the answer is hanging in the balance. Moratoria on foreclosures and evictions coupled with widespread availability of forbearance plans have held disaster at bay, but CFPB says 2.1 million families are behind at least three months on mortgage payments, and another 8.8 million are behind on rent. The aggregate 11 million represent 10 percent of total U.S. households. Homeowners alone are estimated to owe almost $90 billion in missed payments. The last time this many families were behind on their mortgages was during the Great Recession. "Put simply," the report says, "we have very little time to prevent millions of families from losing their homes."

   

• Zillow – Redfin – Zillow Mortgage. Just Another Monday.

  We’ll probably be bringing up more Zillow issues for a while as you, our viewing audience, are sending us so much material. Thank you by the way, we appreciate it! So there’s more on Zillow today, but we also take a look at what would appear to be a Redfin play stolen right from the […]

  The post Zillow – Redfin – Zillow Mortgage. Just Another Monday. appeared first on National Real Estate Post.

• Forbearances Post Typical Mid-Month Increase

  Black Knight reports a second increase in the number of loans in pandemic related forbearance plans in as many weeks. Forborne loans rose by 21,000 during the week ended February 23 after falling below 2.7 million for the first time since last April earlier this month. The company said such mid-month increases have been typical in recent months. At of the end of the reporting period there were 2.7 million homeowners in active plans, 5.1 percent of those with a mortgage, and representing an aggregate unpaid balance of $537 billion.

   

• Barry Habib on Current MBS and Rates

  The TINA effect is in full force right about now. Know what TINA is? Tune in to find out with Barry Habib. If you’re a loan originator you’re watching MBS fall off a cliff. What’s going on? Will it stop? What can we expect going forward? Watch and learn my friends, watch and learn. There’s […]

  The post Barry Habib on Current MBS and Rates appeared first on National Real Estate Post.

• Fannie/Freddie COVID Programs Extended to Match FHA, VA Deadlines

  Deadlines for COVID-19 related relief for borrowers with Fannie Mae and Freddie Mac (GSE) mortgages were extended by the Federal Housing Finance Agency (FHFA) for the second time in a little over two weeks. The agency said the new changes were made to bring GSE programs into alignment with the deadlines for the similar FHA and the VA programs which the White House had extended last week. The moratorium on foreclosures of GSE mortgages was changed from a March 31 expiration to June 30 as was the moratorium on evictions. The latter applies only to GSE owned real estate (REO) that was foreclosed or taken through a deed-in-lieu.

   

• Freddie Mac's 12-Month Portfolio Growth Nears Half Trillion

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 16.1 percent in January compared to a 22.4 percent gain in December. The portfolio balance at the end of the period was $2.777 trillion compared to $2.740 trillion the prior month and $2.339 trillion a year earlier. Purchases and Issuances totaled $120.128 billion and Sales were ($.588) billion. The December  numbers were $129.639 billion and ($1.330) billion, respectively. Single-family refinance loan purchase and guarantee volume was $84.5 billion in January compared to $77.6 billion in December, representing a 73 percent share of total single-family mortgage portfolio purchases and issuances, up from 70 percent the previous month.

   

• No Appraisal Non-QM to $1 Million? Yep.

  Non-QM is really on the rebound and Oaktree Funding is leading the way! On their new Non Agency Streamline Advantage Program you can lend up to $1 Million with an AVM only, and only 3 months bank statements. Click the image below to connect with Oaktree Funding and start closing some business. You can also […]

  The post No Appraisal Non-QM to $1 Million? Yep. appeared first on National Real Estate Post.

• Delinquency Rate Lowest in COVID Era; but Lingering Risks Remain

  Loan performance continued to improve in January although the number of delinquencies remains significantly elevated from pre-pandemic levels. Black Knight's first look at the month's loan performance data has both good news and some that is disquieting. The good news is a 121,000-loan decline in the number of loans that are 30 or more days past due but not in foreclosure when compared to the prior month. This reduced the national delinquency rate to 5.85 percent, the first time the rate has been under 6 percent since the pandemic hit in March 2020. The number of seriously delinquent loans, those 90 or more days past due but not in foreclosure, was reduced by 56,000 loans. Black Knight includes loans that are in active forbearance plans in its delinquency numbers if they are non-current.

   

• New Home Sales on the Rise 4.3% in January

  New home sales continued the turnaround, started in December, that ended three straight months of slowing sales. The U.S. Census Bureau and Department of Housing and Urban Development said newly constructed homes were sold in January at a seasonally adjusted annual rate of 923,000 units. This is an increase of 4.3 percent compared to the upwardly revised (from 842,000) rate of 885,000 in December and 19.3 percent above the estimate of 774,000 units in January 2020. Analysts polled by Econoday had projected sales to be flat compared to the December estimate, in a range of 809,000 to 905,000 units. Their consensus was 855,000 annualized sales.

   

• Pending Home Sales Post 5th Straight Loss

  January marked the fifth straight month that the National Association of Realtors® (NAR) has reported a decline in its Pending Home Sales Index (PHSI). The index, based on newly signed contracts for the purchase of existing homes, was down 2.8 percent from its December level. The index in January was at 122.8 compared to 125.5 in December and has lost 10 points since August. Still, pending sales were up 13 percent compared to a year earlier. This January's PHSI was, in fact, the highest for any January on record.  

   

• Zillow Soliciting Sellers from Agents?

  We received a message from an agent in Washington State claiming that Zillow tried to solicit her own listing (of her own home) away from her, and even gave her reasons why she might consider moving her listing to Zillow. We plan on interviewing her next week for full details, but, if this is the […]

  The post Zillow Soliciting Sellers from Agents? appeared first on National Real Estate Post.

• December Home Price Gains Highest Since 2014

  Both the S&P CoreLogic Case-Shiller and The Federal Housing Finance Agency (FHFA) report that the country ended the year with more than a 10 percent annual increase in home prices. The Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, showed a year-over-year gain of 10.4 percent in December while FHFA put the increase at 11.4 percent. The Case-Shiller National index showed significant acceleration in appreciation from the 9.5 percent reflected in its November report for the prior 12 months. The 10-City and 20-City appreciation was also faster than in November at 9.8 percent and 10.1 percent compared to 8.9 percent and 9.2 percent, respectively.

   

• Mortgage Application Volume Continues Decline

  The volume of mortgage applications for both home purchase and refinancing fell for the third straight time during the week ended February 19. The Mortgage Bankers Association (MBA) says its Market Composite Index, a measure of that volume, dropped 11.4 percent on a seasonally adjusted basis. It was the largest single week decline since the week ended April 3, 2020. On an unadjusted basis the index was down 10.0 percent. The Refinancing Index decreased 11 percent from the previous week but was still 50 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 68.5 percent of total applications from 69.3 percent the previous week.

   

• Realtor Fired for BLM Comment

  A RE/Max agent was fired for making a comment on a post about a BLM event that was going to take place in his area. Today we talk about what his comment was and ask you, our viewing audience, what your thoughts are on the matter. We’re not taking any sides on this, but we […]

  The post Realtor Fired for BLM Comment appeared first on National Real Estate Post.

• Is Margin Compression on the Horizon Already?

  Is Margin Compression on the Horizon Already? Could be. Loan Depot’s numbers show signs of margin compression and we sure other lenders are experiencing the same thing. I don’t think we need to call 911 just yet, but perhaps it’s just another warning that we need to start making some changes now. From 4 to […]

  The post Is Margin Compression on the Horizon Already? appeared first on National Real Estate Post.

• Gary Keller is RIGHT About Zillow

  Go Gary go! Gary Keller may be the only industry leader publicly taking a stand against the Zillow takeover that we can see anyway. This Zillow thing was, and is, the most amazing hostile takeover of an industry ever. They’ve managed to do it by having said industry pay them to do so. When will […]

  The post Gary Keller is RIGHT About Zillow appeared first on National Real Estate Post.

• Prevention Measures and Increased Borrower Equity Lower Foreclosure Risk

  The Urban Institute (UI) says the surge in foreclosures predicted as the COVID-19 pandemic drove unemployment to the highest level since the Great Depression may not materialize, even when the current forbearances end. Two UI researchers, Michael Neal and Laurie Goodman, say that even vulnerable homeowners may be spared, and they think they have identified the reasons. Mortgage forbearance rates peaked at 8.55 percent of active mortgage in June 2020 and began to fall when unemployment rates did. Since October, however, both unemployment and forbearance rates have flattened. This has heightened concern that many homeowners could face foreclosure later this year.

• Existing Home Sales Rise, But Inventories Hamper Results

  Existing home sales started the 2021 with a small increase from the December sale levels, the second consecutive monthly gain. The National Association of Realtors® (NAR) said transactions that include pre-owned single-family homes, townhomes, condominiums, and co-ops, increased 0.6 percent in January to a seasonally adjusted annual rate of 6.69 million units compared to 6.76 million in December. The month's results are up 23.7 percent from the annual rate of 5.41 million sales in January 2020. Existing home sales have increased in seven of the last eight months, even though pending sales, generally considered a leading indicator for the following one or two existing sales reports, have posted four straight monthly losses.

   

• Refi Share of Closed Loans Rose 7 bp in January

  Ice Mortgage Technology (formerly Ellie Mae) said that closed loans continued show declining note rates in January, dropping from an average of 2.93 percent in December to 2.88 percent. The decline occurred across all loan types. The 30-year rate on conventional loans dropped to 2.91 percent from 2.96 percent and the 30-year rate on FHA loans declined by 8 basis points to 2.86 percent. The VA rate averaged 2.60 percent compared to 2.66 percent the prior month. As rates retreated, the percentage of refinances continued to increase, the ICE Mortgage Origination Report said, representing 67 percent of closed loans, up from 60 percent in December 2020. The refinance share varied among lenders, from 74 percent for conventional loans, to 36 percent for VA loans, and 24 percent for FHA. The FHA refi share was up 5 basis points month-over-month while the refi share for each of the other two increased 6 basis points.

   

• Forbearances Post Unsuprising Mid-Month Increase

  There was a 15,000 loan or 0.06 percent increase in the overall number of forbearances last week.  Black Knight says that the gain was somewhat typical of the mid-month performance of the program, with the largest declines at the beginning of the month, tapering off as the previous month's plan expirations are processed. Only one out of every 77 homeowners who were in forbearance at the beginning of the week had exited by the end, one of the lowest removal rates. However new plan entries hit a post-pandemic low.

   

• Inventory, Rates & Guidelines for 2021

  The latest Fannie Mae earnings report is out and in it we can get a view for Inventory, Rates and Guidelines going forward in 2021. So tune in and see what’s up! And, don’t forget, if you need quick turn times with amazing pricing, you’ve gotta get with REMN. Click the image below to get […]

  The post Inventory, Rates & Guidelines for 2021 appeared first on National Real Estate Post.

• Buyer Demand Shores Up Builder Confidence

  After dropping from record high levels by a total of 7 points over the last two months, the index that measures home builder confidence has stabilized. The Housing Market Index (HMI), produced by the National Association of Home Builders (NAHB) and Wells Fargo, rose 1 point in February to 84. "Demand conditions remain solid due to demographics, low mortgage rates and the suburban shift to lower cost markets, but we expect to see some cooling in growth rates for residential construction in 2021 due to cost factors, supply chain issues and regulatory risks," said NAHB Chief Economist Robert Dietz. "Some builders are at capacity and may not be able to expand production due to these headwinds."

   

• Permitting Soars as Builders Prep for Spring

  Builders appear to be prepping for a huge spring. While the U.S. Census Bureau and the Department of Housing and Urban Development report that housing starts were down in January, typically the case in winter, housing permits were issued at what is probably a post housing crisis high. The seasonally adjusted rate of permitting during the month was at an annualized 1,881,000 units, a 10.4 percent jump from December's rate of 1,704,000, itself a more than 4 percent monthly increase, up 22.5 percent from the 1,536,000 permits issued in January 2020.

   

• Are Fannie and Freddie Better as Utilities?

  This is the question at hand. We’ve heard this from David Stevens and other sources that setting up Fannie and Freddie as Utilities is more than likely the future of the GSE’s. What are your thoughts on it? Our feeling is that it’s probably a good idea. Not so good for the shareholders, but good […]

  The post Are Fannie and Freddie Better as Utilities? appeared first on National Real Estate Post.

• Mortgage Volumes Resume Downward Trend as Rates Rise

  The volume of mortgage applications declined again last week, the fourth loss out of the six full weeks since the year began. The Mortgage Bankers Association (MBA says that its Market Composite Index, a measure of application volume, has lost an aggregate of 9.6 percent since the week ended January 1. In the most recent week, which ended February 12, the index was down 5.1 percent on a seasonally adjusted basis and 4.0 percent before adjustment. The Refinance Index decreased 5 percent from the previous week although it remains 51 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 69.3 percent of total applications, from 70.2 percent during the week ended February 5.

   

• Forbearance Relief Extended Through June

  The White House announced on Tuesday that the various COVID-19 relief programs available through The Department of Housing and Urban Development, Veterans Administration, and the Department of Agriculture will be extended. The forbearance program, which allowed homeowners to postpone or reduce mortgage payments, was due to reach the final 12-month mark for many borrowers on March 31. 2021. That has been extended until June 30, 2021.  There will also be a provision to allow homeowners who have been impacted by the pandemic to apply to enter the program until June 30, 2021. President Joseph Biden had already extended the foreclosure moratoriums for federally guaranteed mortgages to June 30, 2021 the day after his inauguration.

   

• David Stevens on CFPB Investigations and GSE Update

  David Stevens talks with us today about the CFPB and what’s currently on their radar, and also what the GSE’s might shape up into under the current Administration. As always, David Stevens is extremely insightful with respect to very relevant and timely information within the mortgage and real estate industry, so tune in!

  The post David Stevens on CFPB Investigations and GSE Update appeared first on National Real Estate Post.

• Home Buyers Frustrated by More Competitive Bidding

  The quarterly Housing Trends Survey conducted by the National Association of Homebuilders found that 69 percent of those actively seeking to buy a home have spent as much as three months searching without success. Rose Quint, writing in NAHB's Eye on Housing blog, says that for the first time in the survey's history, the number one reason for the protracted timeframe wasn't because the potential buyers couldn't find an affordably priced home, although that was the reason cited by a third of them. Forty percent, however, said they continue to be outbid by other buyers.

   

• Fannie/Freddie Report Record Growth for 2020

  Both Fannie Mae and Freddie Mac (the GSEs) reported strong financial results in the fourth quarter of 2020 and significant growth in their net worth which, for the first time in their 12 years in conservatorship, they have an unlimited capacity to grow. Fannie Mae's net and comprehensive income was $4.6 billion in the fourth quarter and $11.8 billion for the entire year. The quarterly net and comprehensive incomes were both about $300 million higher than in Q3, but the full year fell well short of the 2019 total net of $14.2 billion and comprehensive of $14 billion.

   

• Black Knight Says Forbearance Extensions Could Change Landscape

  There was a net decline of 1.6 percent in the number of mortgages in forbearance during the past week, a decrease of approximately 48,000 loans, as more plans that had expired at the end of January were processed out of the system. After the number of forborne loans declined by 45,000 the previous week, Black Knight had estimated there were about 47,000 more January expirations pending either removal or a three-month extension of their forbearance term. The company, in its weekly report on COVID-19 forbearances, said the expirations driving the improvements over the past two weeks are of three-month terms. The maximum 12-month period would have begun to hit at the end of March. However, earlier this week the Federal Housing Finance Agency (FHFA) announced that borrowers in Fannie Mae and Freddie Mac (GSE) forbearance plans may be eligible for an additional extension of up to three months.

   

• Q4 2020: Double-Digit Home Price Gains Across All Four Regions

  Each of the 183 metropolitan housing markets tracked by the National Association of Realtors® (NAR) posted a home prices increase during the fourth quarter of last year. Eighty percent or 161 of those markets had double digit appreciation compared to only 115 that saw such gains in Quarter 3. The national median existing single-family home price rose 14.9 percent on a year-over-year basis, to $315,900 and all four regions were up by double-digits year-over-year. The Northeast led at 20.7 percent, followed by the West at 15.5 percent, the Midwest at 15.1 percent and the South at 14.0 percent. NAR's quarterly report on metropolitan level home prices found the largest annual gains in some metro areas that have long been considered depressed. Bridgeport, Connecticut saw prices increase 39.2 percent, Pittsfield Massachusetts posted 32.2 percent growth, and prices in Atlantic City, New Jersey rose 30 percent. Other metro areas with increases of more than 25 percent include Naples and Crestview, Florida; Barnstable, Massachusetts; Boise City, Idaho; Binghamton and Kingston, New York; and Spokane Washington.
  

• Builders Predict Tough Year for Multifamily Construction

  The National Association of Home Builders (NAHB) is expecting a weakened multifamily construction market this year driven by regulatory and supply-side dynamics along with slowing rent increases and higher vacancy rates. It will be short-lived, however, stabilizing in 2022.   After increasing steadily for four years, rent growth flattened in 2020. Danushka Nanayakkara-Skillington, NAHB's Assistant Vice President of Forecasting and Analysis told a press conference as part of the virtual 2021 NAHB International Building Show "Due in part to pandemic-related issues, rent growth in December 2020 was up just 0.4 percent from a year ago."

   

• NAMB – It’s Time to Pivot

  My big concern, based on what I’m (Frank) seeing that refinance activity is not the 70/30 we’re seeing reported in the media. What I’m seeing is more like 90/10. That would be 90% refi and 10% purchase. I know the default for most LO’s is to wait till the last minute to start looking at […]

  The post NAMB – It’s Time to Pivot appeared first on National Real Estate Post.

• Revisions to Fannie's Automated System May Lead to Easier Approval

  Fannie Mae will implement a new version of its Desktop Underwriter (DU) after the weekend of March 13. Version 11.0 apply to loan casefiles submitted on or after that date, but casefiles created in the previous version. The changes in this release include modifications to DU risk assessment which Fannie Mae says it regularly reviews and updates based on the latest market and loan performance data. The new DU version "will include an updated risk assessment that will finetune DU's ability to assess risk while fostering homeownership sustainability." The company said it expects DU 11.0 to yield only minimal change in the overall percentage of loan casefiles receiving an Approve/Eligible recommendation, but each lender's results may vary depending on their overall mix of business. 

   

• Lab Coat Agents Crushing it as Usual

  Why more loan officers aren’t part of Lab Coat Agents is socking to me. LCA is the biggest group totally engaged real estate agents in the country, hands down, no more to be said. These guys provide so much value to the real estate and mortgage industry it’s insane. As an originator, you need to […]

  The post Lab Coat Agents Crushing it as Usual appeared first on National Real Estate Post.

• Low Rates, COVID are Motivating Prospective Home Buyers

  A high percentage of those who told the National Association of Home Builders (NAHB) late last year that they were thinking of buying a home have now turned thought into action. Rose Quint writes in the NAHB Eye on Housing blog that 15 percent of those queried in its 4^th Quarter 2020 Housing Trends survey said they were considering a purchase and now 56 percent of them are actively looking. A year ago, only 43 percent of those considering buying had shifted into gear. Quint says this is the fourth consecutive year-over-year rise in the share of prospective buyers who have become active buyers. She identified several possible reasons for the most recent uptick; fear of missing out on low interest rates, a need for more space due to COVID-19, and a desire to move to outlying suburbs.

   

   

• FHFA Extends Forbearance Periods an Extra Three Months

  Most of the accommodations that have been allowed lenders and borrowers by the Federal Housing Finance Agency (FHFA) due to the COVID-19 pandemic were modified or extended this past week. FHFA, the regulator and conservator of the GSEs Fannie Mae and Freddie Mac, extended eligibility for mortgage forbearance by three months. Forbearance allows homeowners who are financially impacted by the pandemic, to temporarily reduce or forego mortgage payments. It has been available for three-month terms with extensions available up to a total of 12 months. Existing plans would begin reaching that deadline at the end of March but FHFA has now authorized an additional three-month term, a total of 15 months. An estimated 2.7 million homeowners are in active plans.

   

• Is This Zillow Real Estate Thing Really Legal?

  The way this Zillow Real Estate thing is shaping up has us questioning if it’s legal. At this point Zillow is a licensed real estate brokerage in pretty much every state. With that in mind, is it legal for them to operate the way they do? Let us know what your thoughts are down below. […]

  The post Is This Zillow Real Estate Thing Really Legal? appeared first on National Real Estate Post.

• November Delinquencies at Lowest Levels Since June

  Mortgage delinquencies are continuing a slow retreat into pre-pandemic territory. CoreLogic's Loan Performance Report for November put the percentage of loans that were 30 or more days past due, including those in foreclosure at 5.9 percent. While this is still 2 points higher than the rate in November 2019, it is the lowest overall rate since the initial surge in April of last year. The overall delinquency rate reached 7.1 percent by summer before beginning to improve. The rate for early-stage delinquencies, those 30 to 59 days past due, was 1.4 percent in November, down from 2.0 percent a year earlier while adverse delinquency, loans 60 to 89 days past due, was unchanged year-over-year at 0.6 percent.

   

• Conforming Loan Standards Loosened in January

  Access to mortgage credit increased again in January. The Mortgage Bankers Association (MBA) said its Mortgage Credit Availability Index (MCAI) rose 2.0 percent to 124.6. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The two components of the Conventional MCAI posted significant increases. The Conforming MCAI jumped 7.7 percent and the Jumbo component was up 2.2 percent, pushing the parent index up 4.8 percent compared to December. This was slightly offset by an 0.1 percent decline in the Government MCAI.  

• Slight Rate Increases Dampen Mortgage Application Volume

  Mortgage application activity gave back much of the previous week's gains as interest rates increased. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 4.1 percent on a seasonally adjusted basis during the week ended February 5 and was down 3 percent before adjustment. The Refinance Index, which had surged by 11 percent during the last week in January, was down 4 percent last week but was still 46 percent higher than the same week one year ago. The refinancing share of overall activity decreased to 70.2 percent from 71.4 percent the previous week.

   

• HUD Boss Vows to Make Housing Discrimination Priority

  We keep saying that things are going down a very specific path within the mortgage and real estate industry. Sorry to sound like a broken record, but these are today’s biggest hits for lack of a better way of saying it. Even DeMarco at FHFA sees what we see with respect to the new administration […]

  The post HUD Boss Vows to Make Housing Discrimination Priority appeared first on National Real Estate Post.

• Are Low Rates Enough to Offset Rising Prices? Builders Say Yes

  Even with the accelerating pace of home price increases, the National Association of Home Builders (NAHB) still sees homes remaining affordable. The NAHB/Wells Fargo Housing Opportunity Index for the fourth quarter of 2020 shows that affordability remained steady during the quarter as "record-low mortgage rates offset record-high home prices." NAHB analyst Rose Quint writes in the Eye on Housing blog however, that "regulatory and supply-side challenges threaten to aggravate affordability problems in the year ahead." Quint says that, nationally, 58.3 percent of all homes, new and existing, that sold during the quarter were affordable to households earning the adjusted U.S. median income of $72,900, identical to the percentage in Q3. This was, however, the lowest percentage since the same quarter in 2018. The median income for Q4 2020 was provided by the Department of Housing and Urban Development (HUD) based on estimates computed prior to the onset of the COVID-19 pandemic. NAHB adjusted those income numbers down by 7.1 percent to account for the pandemic's effects.

• Buyers and Sellers Both More Upbeat in 2021

  Consumers expressed more positive sentiments toward the housing market as 2021 arrived, sending Fannie Mae's Home Purchase Sentiment Index (HPSI) a bit higher. The most significant gains came from increased optimism about the climate for selling a home. The index increased by 3.7 points to 77.7 in January, erasing at least a portion of its 6-point loss in December. Fifty-seven percent of consumers contacted by the monthly National Housing Survey said they felt it was a good time to sell a home, up 7 points from December, while those who viewed it as a bad time dropped 9 points to 33 percent. This left the net positive answers at 24 percent, a 16-point month-over-month increase and 21 points higher than in January of last year.

   

   

• Barry Habib – $1.9 Trillion Stimulus & Rates

  Today we talk with Barry Habib about a bunch of stuff including how this whole $1.9 Trillion stimulus package might impact rates. Crazy times for sure right?!? Click the MBS Highway logo below to get started with MBS Highway and don’t forget – GO STEAM TEAM! Don’t lose a listing due to a weak listing […]

  The post Barry Habib – $1.9 Trillion Stimulus & Rates appeared first on National Real Estate Post.

• Take Action to Increase Inventory and Support Under Served Communities

  Click the NAMB logo below to support S-98, the Neighborhood Homes Investment Act to help increase inventory and support our under served communities. NAMB makes is extremely easy to do this. It’s just a few clicks and your message is delivered to your representatives. This is a really important initiative for our industry and our […]

  The post Take Action to Increase Inventory and Support Under Served Communities appeared first on National Real Estate Post.

• Homeownership Rising Despite Seasonal Volatility

  The homeownership rate fell in the fourth quarter down 1.6 percentage points from its third quarter level but remained higher than in the same quarter in 2019. The U.S. Census Bureau said the rate, 65.8 percent, was up from 65.1 percent a year earlier. The national rate had topped 69 percent at several points during the housing boom in 2004 and 2005 before retreating. It declined steadily through the Great Recession and into the recovery, reaching a low of 62.9 percent in the second quarter of 2016. Homeownership is consistently highest in the Midwest, and that region posted an annual increase of more than a point in the fourth quarter to 70.8 percent. The South was second at 67.7 percent, also a point higher year-over-year. The rate was 62.6 percent in the Northeast and 60.4 percent in the West. The latter two regions were essentially unchanged from the fourth quarter of 2019.  

   

• FHA Changes a Few Rules in Favor of Social Distancing

  The Federal Housing Administration (FHA) has issued several waivers to provisions in its Single-Family Housing Policy Handbook in acknowledgement of the financial impact on some of its borrowers from the COVID-19 pandemic. The provisions affected are those that would normally require in-person contact between borrowers and their mortgage services, including seniors who have Home Equity Conversion (HECM) reverse mortgages. The agency said the waivers allow important mortgage servicing activities to continue, but in a manner that allows for safe social distancing to help combat the pandemic. Two of the waivers are specific to HECMs. The first waives the $5,000 property charge payment arrearages cap on recalculated repayment plans. This will allow servicers to help more HECM borrowers who are behind on their property charge payments. The second eliminates the requirement for servicers to obtain a signature on an occupancy certification from a HECM borrower.

   

• Expirations Drive First Decline in Forbearances in Three Weeks

  Black Knight says the number of loans in forbearance saw a significant decline over the past week, driven, as the company had said to expect, by plans expiring at the end of January. There was a net decrease of 45,000 active plans (-1.6 percent), the first improvement in three weeks. There are still 47,000 plans which were scheduled to expire on January 31 which are currently being reviewed by servicers for an extension or removal. This may mean additional modest declines over the next few days The greatest improvement was to the FHA and VA loan numbers. Those combined portfolios shrunk by 2 percent or 23,000 loans. Twelve thousand loans in the  Fannie Mae and Freddie Mac (GSE) portfolios left forbearance, a -1.3 percent change. The total forbearances serviced for bank portfolios and private label securities (PLS) dropped by 10,000 or 1.4 percent.

   

• Racial Equality is a Critical Focus Point for Mortgage Industry

  Don’t shoot the messengers here. We fully understand that you’re not discriminating against anyone. That’s not the point of this show. The point of this show is to make you aware that the current administration is laser focused on the racial equality issue we have in this country when it comes to housing. Recent Census […]

  The post Racial Equality is a Critical Focus Point for Mortgage Industry appeared first on National Real Estate Post.

• And Now… the New FHFA – Maybe…

  There’s been so much discussion about the FHFA and what form it will take. Well it looks as though they might become a full fledged government regulator. Seems the talks of taking them out of conservatorship to reinstate them as private companies is fading away and in fact going quite the opposite direction. What does […]

  The post And Now… the New FHFA – Maybe… appeared first on National Real Estate Post.

• Residential Construction Spending Grew by 11.8% in 2020

  Public and privately funded construction spending ended 2020 with a 4.7 percent increase over spending in 2019. The U.S. Census Bureau said the combined outlays for the recent year was $1.430 trillion compared to 1.365 trillion the prior year. Residential spending, which increased significantly on a percentage basis in the public sector although the dollar amount remained relatively small, was an aggregate of $616.169 billion for the year, an 11.8 percent increase from 2019. During the last month of the year, total construction spending was at a seasonally adjusted annual rate of $1.490 trillion. This was a 1.0 percent gain from November and 5.7 percent higher than the same month in 2019. On a non-adjusted basis $112.706 billion in construction was put in place compared to $124.760 billion in November.

   

• CFPB's New Seasoning Rule is Already Showing Promise

  The Urban Institute (UI) has looked at a final mortgage rule issued by the Consumer Financial Protection Bureau (CFPB) in late 2020 which would provide a 3-year pathway to safe harbor for loans that are a rebuttable presumption or nonqualified mortgage at origination. The study, by UI analysts Karan Kaul, Laurie Goodman, and Jun Zhu found that loan performance during the first three years of the mortgage term is a better predictor of subsequent loan performance than the rate spread. The rule requires that both rebuttable presumption and nonqualified conventional first-lien mortgages can be deemed safe harbor 36 months after origination if they are held on the originator's balance sheet. They may also be sold once and then held as a whole loan on the buyer's balance sheet for the entire three-year period. These loans cannot be 30 days delinquent more than twice nor have any 60-day delinquencies during the three-year seasoning period.

• Refinancing Volume Surges on Slight Rate Drop

  Borrowers looking to refinance were quick to take advantage of a slight drop in interest rates last week.  The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, jumped 8.1 percent on a seasonally adjusted basis during the week ended January 29, and was up 10 percent on an unadjusted basis.  The index had declined in each of the two previous weeks. The Refinance Index increased 11 percent from the previous week, also reversing two weeks of losses, and was 60 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 71.4 percent of total applications from 70.7 percent the previous week. The seasonally adjusted Purchase Index ticked up 0.1 percent and was 8 percent higher on an unadjusted basis. The index was 16 percent above its level the same week in 2020.  

   

• December Home Price Gains Shot Up 9% Annually

  CoreLogic reports that December saw yet another acceleration in home price increases. The company's Home Price Index (HPI) rose 9.2 percent on an annual basis. The increase in November was 8.2 percent. The month-over-month change, 1.1 percent, was also greater than the increase from October to November, 1.0 percent.  CoreLogic says the December data means the housing market closed out the year with the highest annual price gain since February 2014, far exceeding expectations. Other than a "blip" in April reflecting the initial shock of the pandemic, home-purchase demand surged as record-low mortgage rates persuaded first-time homebuyers to enter the market. COVID-19, however, did serve to damp down the supply of homes. Inventories dropped, on average, 24 percent below 2019 levels as homeowners delayed selling.

   

• Here Comes the New CFPB

  Here comes the new CFPB as we’ve been saying. In an article from National Mortgage News we get some real insights into what’s going to happen. Here’s a quote for all of us to chew on “Over the coming weeks, we will also be reversing policies of the last administration that weakened enforcement and supervision,” […]

  The post Here Comes the New CFPB appeared first on National Real Estate Post.

• Freddie Mac 2020 Portfolio Growth Doubles 2019's

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 22.4 percent in December compared to a 29.5 percent gain in November. The portfolio balance at the end of the period was $2.740 trillion compared to $2.689 trillion the prior month and $2.301 trillion a year earlier. The growth rate for 2020 was 17.6 percent, up from 6.8 percent for all of 2019. Purchases and Issuances totaled $129.639 billion and Sales were ($1.330) billion. The November numbers were $155.291 billion and ($4.080) billion, respectively.

   

• Refi Demand Staying Strong Despite Rising Rates

  The current Mortgage Monitor from Black Knight looks at the recent small increases in mortgage rates and their potential impact on home sales. The company says that Treasury yields have been rising with the 10-year up nearly 0.25 percent just since the January 5 Georgia senatorial runoff. While the spread between it and the 30-year mortgage rates absorbed part of the increase, mortgages did subsequently rise by about 1/8^th of a point. The January spike wasn't an isolated event, the 10-year yield had eased up 40 basis points over the last five months of 2020. "Should yields rise further in coming months, they may begin to impact 30-year rates more directly, although the Fed's bond buying efforts are expected to insulate the mortgage market to some degree," the report says.

   

• FHA MI Reductions On Horizon. New Bill Focuses on Inventory Issues.

  Big news today from NAMB. President Kimber White tells us that HUD is looking at lowering the monthly MI and possibly having it drop off completely from the loan after some time. Also in today’s show, “what about the GSE adverse market fee that was supposed to be temporary”? When is that going away? And […]

  The post FHA MI Reductions On Horizon. New Bill Focuses on Inventory Issues. appeared first on National Real Estate Post.

• Pending Home Sales' Recent Decline is Nothing Compared to Yearly Gains

  Pending home sales retreated for the fourth straight month in December.  The National Association of Realtors® (NAR) said its Pending Home Sales Index, which indicates contracts signed during the month to purchase single-family houses, townhomes, condos, and cooperative apartment. dipped 0.3 percent to 125.5. The decline was primarily due to fewer new contracts in the Midwest. Before the recent retreat started in September, pending home sales had put together four months of strong results resulting in the index reaching 132.8 in August. The December PHSI was 21.4 percent higher than its level in December 2019 and the highest ever recorded for a December as the seasonal dislocation of traditional home buying patterns continues. Analysts polled by Econoday were spot on with their December forecast. They had predicted that the index would fall as much as 3.6 percent or rise as much as 1.0 percent. Their consensus, however, was a downturn of 0.3 percent.  

   

• Barry Habib on Rates Responding to COVID

  Are rates responding to fears of COVID-19 not getting any better or worries about new COVID variants? Tune in to find out about this and how rates are looking going into next week. Click the MBS Highway logo below to get started with Barry and MBS Highway.

  The post Barry Habib on Rates Responding to COVID appeared first on National Real Estate Post.

• New Home Sales Recover Slightly After Losses, Still up 15% Annually

  New homes sales managed a small increase in December following three months of losses including a substantial downturn in November. The U.S. Census Bureau and the Department of Housing and Urban Development reported that sales of newly built homes were at a seasonally adjusted annual rate of 842,000 units. This is a 1.6 percent increase from the downward revision of the November estimate. The revision downgraded those sales from an annual rate of 841,000, a 11.0 percent decline, to 829,000. The December rate of sales represents 15.2 percent year-over-year growth. Analysts had expected a better recovery from the November loss. Those polled by Econoday had predicted sales would be in the range of 822,000 to 934,000. Their consensus was 871,000 units.

   

• Forbearance Plans Increased Again in January

  While the number of Fannie Mae and Freddie Mac (GSE) loans in forbearance continued to decline last week, that 4,000 loan improvement was more than offset by an increase in FHA and VA loan and loans serviced for bank portfolios and investors in private label securities (PLS). Black Knight said the result was an increase of 20,000 loans in active forbearance plans during the week ended January 26. This, the company said, continues the trend of mid- and late month increases that has been apparent for some time. At the end of the reporting period there were an estimated 2.76 million loans in forbearance, 5.2 percent of the nation's 53 million active mortgages and representing $551 billion in unpaid principal. After the 4,000-loan decline, 925,000 GSE loans, 3.3 percent of the total, remain in forbearance. FHA and VA portfolios added an aggregate of 9,000 plans, bringing those totals to 1.149 million or 9.5 percent of their loans. Bank/PLS plans grew by 15,000 to a total of 690,000 or a 5.3 percent share.

   

• Lack of Inventory Hurts Agents and Lenders Alike

  Our current lack of inventory is a huge problem. We really don’t need first time home buyer tax credits. We need inventory, there’s plenty of buyers lined up. How about builder credits to build affordable homes meant for first time home buyers? Well there’s not a lot we can do to convince the government about […]

  The post Lack of Inventory Hurts Agents and Lenders Alike appeared first on National Real Estate Post.

• Zillow Officially Your Biggest Competitor – Are We Wrong?

  Zillow is officially your biggest competitor. Are we wrong? First they start buying and selling homes. Then they remove all or your reviews. Now they won’t allow you to edit your own listings on their website. Why? We think it’s because they are now using IDX as their data feeds which means they’re the biggest […]

  The post Zillow Officially Your Biggest Competitor – Are We Wrong? appeared first on National Real Estate Post.

• November Home Prices Climbed at Highest Rate in Six Years

  The annual increases in U.S. home prices is nearing dizzying levels. The November data from the Federal Housing Finance Agency (FHFA) crossed into double digits for the second consecutive month while the months numbers from S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index came close. The Case-Shiller index, which covers  all nine U.S. census divisions, gained 9.5 percent compared to the previous November. The annual increase in October was 8.4 percent. On a seasonally adjusted monthly basis the National Index rose 1.4 percent and was 1.1 percent higher on an unadjusted basis.  Appreciation in Case-Shiller's  two composite indices also accelerated - each rose more than a single percentage point from the annual gains in October. The 10-City composite's increase came in at 8.8 percent compared to 7.6 percent in October. The 20-City Composite rose 9.1 percent, up from 8.0 percent. Data from Wayne County Michigan continues to be insufficient due to earlier COVID related shutdowns to include Detroit's housing transactions in the indices.

   

• More Evidence of Covid's Effect on Home Buying Preferences

  It probably wasn't on your COVID Bingo card, but the National Association of Home Builders (NAHB) is finding more and more evidence that the pandemic is changing America's home buying plans. Rose Quint writes in NAHB's Eye on Housing Blog that the percentage of those households considering purchasing a home within the next year took the largest jump in the history of the association's Housing Trends Report. Fifteen percent of those surveyed in the fourth quarter of 2020 had such plans, up 4 points from a year earlier.

• Mortgage Application Volume Retreats for Second Week

  There was a significant pull-back in the volume of mortgage applications during the week ended January 22. Volume has been down in two of the three full weeks of the new year. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, declined 4.1 percent on a seasonally adjusted basis from one week earlier and was 3.0 percent lower on an unadjusted basis. The Refinance Index was 5 percent lower than during the week ended January 15, although it outpaced the same week in 2020 by 83 percent. The refinance share of mortgage activity decreased to 70.7 percent from 72.3 percent the previous week. The seasonally adjusted Purchase Index decreased 4 percent from one week earlier and was down 3 percent on an unadjusted basis. Purchase activity was 16 percent higher than the same week in 2020.  

   

   

• FHA Forbearance Eligibility and Eviction Moratoria Extended

  The Acting Secretary of the Department of Housing and Urban Development (HUD) has announced an extension of the deadline for borrowers with FHA mortgage loans to apply for and receive forbearance. Matthew Ammon said up to six months of deferred or reduced mortgage payments may be available to homeowners financially impacted by the pandemic who request it by March 31, 2031. An additional six-month extension to the initial forbearance term is possible. Ammon said, "On the first day of his new Administration, President Biden took immediate actions to stem the economic devastation experienced by the nation's hardworking families because of the pandemic. Today's extension supports the President's direction by providing more time for homeowners to seek mortgage payment relief."

   

• Are You Too Busy or Just Under-Helped?

  Are you too busy or are you just under-helped? That’s what we discuss today with Carl White. He has a totally free jump start course that you can get by clicking the image below where this is touched on along with a bunch of other stuff that is sure to help you out if you’re […]

  The post Are You Too Busy or Just Under-Helped? appeared first on National Real Estate Post.

• Loans Still Taking 2 Months to Close as Refi Demand Stays Strong

  The interest rates on 30-year fixed rate mortgages originated in December reached an all-time low in ICE Mortgage Technology's (formerly Ellie Mae's) records, an average of 2.93 percent and a 4-basis point decline from the November rate. The company, in its monthly Origination Insight Report, said the note rate for all three loan types it tracks, FHA, Conventional, and VA, were all below 3.0 percent for the second straight month. FHA and Conventional loans dropped to 2.94 and 2.96 percent, respectively. Each averaged 2.99 percent the prior month. The VA rate fell from 2.72 to 2.66 percent. Refinances continued to dominate at 60 percent of originations, down 1 percentage point from November but up from 46 percent a year earlier. The outsized share was skewed toward conventional loans at 68 percent. Purchase loans accounted for 81 percent of FHA originations and 70 percent of VA loans.

   

• Barry Habib on Stocks, Bonds and Housing

  First show of the year with our dear friend Barry Habib. If you’ve noticed a bit of a change in rates and are wondering on what we might be looking at going forward, tune in to today’s show. And be sure to click the MBS Highway logo below to get started for FREE. Don’t miss […]

  The post Barry Habib on Stocks, Bonds and Housing appeared first on National Real Estate Post.

• End-of-Year Delinquencies a Challenge for 2021

  Mortgage performance understandably deteriorated over the course of 2020. Black Knight, in its "first look" at December data, noted that the year ended with 1.54 million more delinquent mortgages and 1.7 million more that were seriously delinquent than at the start, calling it "a looming reminder of the challenges facing the market in 2021." The situation did continue to improve as the year ended. The national delinquency rate fell 3.9 percent from November to December and the resulting rate of 6.08 percent of all active loans was the lowest since April 2020 when the financial effects of the pandemic kicked in. It is however, nearly 79 percent higher than the rate at the end of 2019. Serious delinquencies, loans 90 or more days past due but not in foreclosure, also declined, dropping by 47,000 loans to 2.146 million loans. In December 2019 there were 1.719 million such loans.

   

• Upbeat 2021 Econ Forecast From Fannie Mae

  Optimism is running high in Fannie Mae's first Economic and Housing Outlook of the year. The company's Economic and Strategic Research (ESR) team says expanding vaccination efforts, the potential of greater than previously expected fiscal stimulus, and the end of winter all "point to an economy ready to take off once COVID-19-related effects begin to subside." The company says that economic growth probably flatlined in November and December and it revised its final GDP estimate for the year down to a negative 2.7 percent. The economy is now poised to expand, although probably not before late spring. The ESR team has raised its expectations for 2121 from 4.5 percent growth in last month's report to 5.3 percent and by 0.4 points for 2022 to 3.6 percent.  

   

• Existing Home Sales Reach Highest Levels Since 2006

  Existing home sales resumed an upward trajectory in December. After drifting lower by 2.5 percent in November, breaking a five-month streak of gains, the National Association of Realtors® (NAR) said sales in the last month of the year rose 0.7 percent. Sales of single-family homes, townhomes, condominiums, and co-ops, were at a seasonally adjusted annual rate of 6.76 million during the month, compared to 6.69 million units in November. This represented a 22.2 percent increase over the 5.53 million unit rate a year earlier. The numbers were above the 6.40 million to 6.62 million range of forecasts by analysts polled by Econoday. Their consensus was for an annual rate of 6.55 million units.

   

• NAMB – DACA is BACK!

  Getting DACA loans back in play for ALL originators was one of NAMB President, Kimber White’s main objectives. Well, it’s done! DACA loans are back. If you’re not familiar with what a DACA loan is, get familiar as it will benefit a lot of originators in a lot of areas around the country. There’s more […]

  The post NAMB – DACA is BACK! appeared first on National Real Estate Post.

• Zillow Drops Reviews & Moves to IDX

  There’s still a forbearance issue going on that’s really not being portrayed properly as far as we can see. It’s not overwhelming, but, it’s there and needs to be discussed. Zillow. All the reviews you’ve been working for are gone – why? Because they’re not your friend, that’s why. And now they’re moving to IDX […]

  The post Zillow Drops Reviews & Moves to IDX appeared first on National Real Estate Post.

• Rising Material Prices and Lot Shortages Hurt January Builder Confidence

  After setting three successive record highs, most recently a 90 level in November, the pandemic and rising construction costs are taking a toll on the Housing Market Index (HMI). The National Association of Home Builders (NAHB) said the index, which it sponsors with Wells Fargo, fell for the second straight month. A 3-point drop in the index, which measures builder confidence in the new home market, follows a 4-point decline in December. The January level now stands at 83. "Despite robust housing demand and low mortgage rates, buyers are facing a dearth of new homes on the market, which is exacerbating affordability problems," said NAHB Chairman Chuck Fowke. "Builders are grappling with supply-side constraints related to lumber and other material costs, a lack of affordable lots and labor shortages that delay delivery times and put upward pressure on home prices. They are also concerned about a changing regulatory environment."

   

• DACA "Dreamers" Given FHA Loan Eligibility

  The Department of Housing and Urban Development (HUD) announced on Tuesday that it has extended eligibility for FHA mortgages to individuals who are classified under the Deferred Action for Childhood Arrivals program (DACA). These individuals are perhaps better known as "Dreamers." DACA status is granted to undocumented individuals who were brought into the country before their 16^th birthday and were under the age of 31 when the category was established in June 15, 2012. Residency requirements apply and individuals must be in school, have completed high school, obtained a GED certificate, or be honorably discharged from one of the military services. DACA status allows its holders to work legally in the U.S. and prevents their involuntary removal from the country for a two-year renewable term.

• Retail, Correspondent Jobs; Performance, Non-QM, Sales Tools; STRATMOR Strategy Paper; DACA and FHA

  “Do y’all remember, before the internet, that people thought the cause of stupidity was the lack of access to information? Yeah, it wasn’t that.” The internet has brought a lot of change to the world, and to our industry. But we don’t need the internet to drive changes, and potential changes, in our biz. HUD has declared that it will once again back DACA mortgages. Huntington’s Rob B. asks, “Is a CRA Mandate coming for independent mortgage banks (IMBs)?” (Prompting his question is the perception that President Biden will look for opportunities to boost homebuyers and builders. Of course, if there is little inventory, or land to build on, or people to build them…) CFPB Director Kathy Kraninger, who's term would not have ended until 2023, resigned, indirectly furthering the Biden Administration’s pick of replacement Rohit Chopra, awaiting Senate confirmation. (It is unclear as to who may become acting Director until the Senate confirms Kraninger's replacement.) Brian Montgomery, confirmed less than a year ago as HUD Deputy Secretary, sent a “goodbye letter” to his staff.

   

• Construction Surges to Highest Levels in 15 Years

  Residential construction finished out 2020 much more strongly than analysts had expected. The U.S. Census Bureau and Department of Housing and Urban Development reported significant increases in both residential permitting and housing starts in December, the second month in a row those numbers have grown. The numbers, however, took a hit in the Northeast. Permits for privately funded construction were issued at a seasonally adjusted annual rate of 1,709,000 units, an increase of 4.5 percent from the revised (from 1,639,000 units) rate of 1,635,000 in November. The pace of permitting in December was 17.3 percent higher than the 1,437,000 units estimated a year earlier.

   

• These Rates are Out of Control

  What will we do if rates go into the 3’s? I don’t know, but what I do know is these rates are out of control! Look guys, it doesn’t matter, just work. Head down, eyes forward, work. Use your phone as a phone is probably the best tip we could give you. Look, you don’t […]

  The post These Rates are Out of Control appeared first on National Real Estate Post.

• Biden Nominates Two Picks for Important Financial Positions

  President-elect Joe Biden has announced his picks for two important financial regulatory positions. The chairmanship of the Consumer Financial Protection Bureau (CFPB) will be filled by Rohit Chopra while Gary Gensler is expected to be named to head the U.S. Securities and Exchange Commission (SEC). Both nominations are expected to be controversial among the communities that fall under supervision of the two agencies with Chopra perhaps facing a difficult confirmation process. Chopra helped now-senator Elizabeth Warren (D-MA) design CFPB during the presidency of Barack Obama and served as its assistant director and student loan ombudsperson. He has been a member of the Federal Trade Commission since 2018. Gensler was chair of the Commodity Futures Trading Commission (CFTC) from 2009 to 2014 and has led Biden's financial industry oversight planning team since the election. Industry observers generally expect the appointments to signal a return to more robust oversight than was the course during the outgoing administration.

   

• Refinancing Volume Pulls Back as Rates Rise

  The volume of mortgage applications fell back slightly last week. The Mortgage Bankers Association (MBA) said its Market Composite Index was down 1.9 percent on a seasonally adjusted basis during the week ended January 15 compared to the prior reporting period. On an unadjusted basis the index lost 1.0 percent. The seasonally adjusted Purchase Index rose 3.0 percent from one week earlier and was 9.0 percent higher on an unadjusted basis. Purchase applications were up 15 percent year-over-year. Those gains were offset by a 5.0 percent decline in the Refinance Index although it remained 87 percent higher than during the same week in 2020. Applications for refinancing composed  72.3 percent of the total, down from 74.8 percent the previous week.

   

• Fannie/Freddie Allowed to Keep More Capital (Again)

  Late last week the Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury (Treasury) agreed to amend the Preferred Stock Purchase Agreements (PSPAs) which govern the required distribution of dividends to Treasury from the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. The amendments will bring the amount of capital the companies are permitted to retain into conformance with the 2020 Enterprise Capital Rule unveiled by FHFA in November. Under that rule, the GSEs will be allowed to retain earnings to maintain tier 1 capital in excess of 4.0 percent of their guarantee obligations to avoid restrictions on capital distributions and discretionary bonuses.

   

• New Home Purchase Applications Remained Strong to Year's End

  The Mortgage Bankers Association (MBA) estimates that applications for the purchase of newly built homes rose only 0.2 percent from November to December, however, those applications were up 42.2 percent compared to December 2019. The information comes from MBA's monthly Builder Application Survey (BAS) and was not adjusted for typical seasonal patterns. Based on those mortgage applications and assumptions regarding market coverage and other factors, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 876,000 units in December 2020. This is an increase of 5.9 percent from the November pace of 827,000 units. On an unadjusted basis, there were an estimated 59,000 new home sold during the month, unchanged from the same level in November.   

• Zillow = Ugh, CFPB’s New Boss, Twisted FHFA Farewell.

  The ultimate enemy of all real estate agents slaps Realtors yet again. Who knows, maybe they’ll stop paying them. If you want my opinion (Frank), Zillow should have to pay each Realtor for each of their listings if they want the privilege of marketing them. There’s a new sheriff in town over at the CFPB, […]

  The post Zillow = Ugh, CFPB’s New Boss, Twisted FHFA Farewell. appeared first on National Real Estate Post.

• Time for Rates to Bounce?

  Is it time for rates to bounce up? We’ll try and check in with Barry Habib to see what’s going on, but for now, take a look at the graph on today’s show. Sure seems like we’re due to start heading the other direction. What do you think about rates? Are the ready to bounce […]

  The post Time for Rates to Bounce? appeared first on National Real Estate Post.

• Post-2008 Standardized Practices Have Helped Manage Forbearances

  Fannie Mae said that the standardization of servicing standards that followed the 2008 housing crisis appears to have helped the industry manage the recent flood of COVID-19 forbearance plans. The company included a series of questions about forbearance management in its September Lender Sentiment Survey and has now released a special report on the responses. Servicers had to move quickly to implement the forbearance programs, which were first announced by the GSEs Fannie Mae and Freddie Mac and by FHA but were then expanded and mandated by Congress under the CARES Act. They also had to manage the loans in forbearance, continue remittances to investors, and make insurance and tax payments out of escrow accounts. As the plans had three-month terms, borrowers had to be contacted to do renewals or to implement loan modifications or other exit strategies.

   

• First Quarter Projections: Steady as They Go

  Freddie Mac's first quarter 2021 economic forecast is unusually short, and, unlike recent forecasts from either of the GSEs, has relatively few revisions. The company's economists say that nearly a year after the first cases of COVID-19 were diagnosed in the U.S., economic growth remains uncertain, with answers largely hinging on the roll-out of the new vaccines. The labor market remains weak with close to 20 million collecting unemployment insurance. December's job losses, the first since last April, didn't change the unemployment rate from 6.7 percent because labor participation also declined.

   

• Improvements in Forbearance Continue to Slow

  A decline in the number of forborne loans in those portfolios serviced for banks and private label securities (PLS) accounted for most of the modest downturn in overall numbers last week. Black Knight said the number of active plans dropped by 9,000 loans or 0.3 percent compared to the previous week. The the total of active plans is only 1.5 percent below where it was in December, continuing a recent trend of slowing improvement. "This further sets the stage for a great many plans to still be active when the first wave of forbearance plans begin to expire at the end of March, the Black Knight report says."

   

• FHFA to Screw Up Appraisals

  The FHFA is looking for comments on how they can better screw up the appraisal process. So if you’ve got a hankerin’ to help out with that you can find a comments section somewhere on the world wide web to do so. What are your thoughts on this appraisal idea from the FHFA? Need help […]

  The post FHFA to Screw Up Appraisals appeared first on National Real Estate Post.

• CFPB Investigates Rocket Homes

  The CFPB is looking at Rocket Homes for alleged kickbacks. This isn’t surprising to us and considering how many other real estate/mortgage arrangements there are out there it’s probably going to continue. What are your thoughts on the matter? Will these investigations expand into other relationships out there? If you want to keep the ball […]

  The post CFPB Investigates Rocket Homes appeared first on National Real Estate Post.

• Tentative Recovery in Mortgage Availability With Help From Government and Jumbo Loans

  While it did dip a bit last month, the availability of mortgage credit appears to be stabilizing, having moved only slightly over the last three months. The Mortgage Bankers Association's (MBA's) Mortgage Credit Availability Index (MCAI) was down 0.1 percent in December, to a reading of 122.1. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.

  The MCAI was at 181.3 in February 2020 as news of the pandemic broke. It declined by 16.1 percent in March and another 12.2 percent in April. Subsequent smaller decreases ultimately took the index to 118.6 in September before it began what is so far a hesitant recovery.

• Refi Applications Highest Since March

  It was a typical first-work-week-after-the holiday bounce for the mortgage indexes, although the surge was significantly more restrained than last year. Perhaps the nation was otherwise distracted. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 16.7 percent on a seasonally adjusted basis during the week ended January 8. During the first week of 2020 the increase was over 30 percent. On an unadjusted basis, the index was up 69 percent. The Refinance Index increased 20 percent from the previous week, less than half the 2020 post-holiday recovery. The Refinance Index is 93 percent higher than a year ago and the refinance share of total applications rose to 74.8 percent of total applications from 73.5 percent the previous week.

   

• Irrational Exuberance?

  Is the real estate/mortgage IPO craze irrational exuberance or rational exuberance? Please let us know your thoughts below. These investors must have an amazing amount of confidence in the real estate and mortgage industry to be dumping so much money into these IPO’s. Do you have this much confidence? We’re just curious. Have you put […]

  The post Irrational Exuberance? appeared first on National Real Estate Post.

• Although Gradually Improving, Delinquencies Remain Elevated

  The rate of mortgage delinquencies remains significantly elevated from last year, but there is gradual improvement. The national rate moved higher in October on an annual basis per CoreLogic's Loan Performance Insights Report. Loans that were 30 or more days past due, including those in foreclosure, represented 6.1 percent of all active mortgages compared to 3.7 percent in October 2019. In September, however, the annual rate of increase was 6.3 percent. Early-stage delinquencies are exhibiting the most positive trend. Loans that were 30 to 59 days past due declined from a 1.8 percent rate in October 2019 to 1.4 percent. The rate for that delinquency bucket spiked at 4.2 percent in April when the first financial effects of the COVID-19 pandemic hit. The rate for loans in "adverse" delinquency, i.e., 60 to 89 days non-current, was unchanged from a year earlier at 0.6 percent.

   

• Will DACA Loans Come Back along with DPA?

  Today we talk to NAMB President Kimber White. He’s hopeful not only for some HUD Approved DPA with this administration, but he’s also hopeful for DACA loans to make a reappearance. If you’re not familiar with what DACA is, or even if you are, tune in to learn more! Now is the time to jump […]

  The post Will DACA Loans Come Back along with DPA? appeared first on National Real Estate Post.

• Black Knight Notes Slowdown in Forbearance Improvement

  A month end wave of plan expirations in December led to a substantial decline in the number of active forbearances during the first week of 2021. Black Knight says there were 92,000 fewer active plans as the week ended, a decline of 3 percent and the largest weekly drop since early November. Many of the plans that expired were reaching the 9-month mark. Program removals totaled 146,000, offset by new plan starts, which were the lowest since spring, and restarts which were at their lowest level since early October. The company said however, that the decline was still a troubling slowdown in the rate of improvement. When the first wave of quarterly expirations hit in early July the number of active plans fell by 9 percent. 

• Still Cheaper to Own than Rent in Majority of U.S. Counties

  In most parts of the country owning a home is more affordable than renting one according to ATTOM Data Solutions' 2021 Rental Affordability Report. The company looked at the median price of a three-bedroom home in 915 U.S. counties and the rent for a comparable home and found owning more affordable 572 or 63 percent of them. The company says this has happened despite home prices increasing faster than rents in 83 percent of the counties and faster than wages in two-thirds. Renting, however, remains more affordable in the biggest cities.

   

• Here Comes the Gravy

  With the new administration, there’s going to be a lot of “gravy” flowing across the country, and much of it is directed toward the housing industry. Clearly it’s going to be great for a lot of people, but not so great for others right? That’s just how gravy works, it starts somewhere and flows somewhere […]

  The post Here Comes the Gravy appeared first on National Real Estate Post.

• Five Questions for the New Year

  While COVID-19 has wreaked havoc on most of the economy last year, Wells Fargo's Securities Economic Group says many of the responses to the pandemic - lockdowns, remote schooling, and remote work - served to "flip the script" on housing, increasing demand for some types of properties and locations. At the same time, massive job losses have caused a spike in the delinquent mortgage and rent payments, although forbearance and moratoriums have held foreclosures and evictions to a minimum. A new report from the economists puts forward and answers five questions about the direction of housing over the next year.

   

• Pandemic Took a Bigger Bite Out of Upbeat Housing Attitudes in December

  That the pandemic is worse today than it was last spring appears to be finally dawning on a lot of consumers and the Home Purchase Sentiment Index (HPSI) for December reflects it. Fannie Mae says its index, based on six questions from its monthly National Housing Survey, dropped 6.0 points to 74.0. Five of the components moved lower and the sixth was unchanged from the prior month. It was the second month in a row that the index declined, and it is now 17.7 points lower than one year ago.

  Positive responses dropped for the question of whether it is currently a good time to buy a home. Fifty-two percent of respondents said it was, down from 57 percent in November, while the percentage who say it is a bad time increased from 35 percent to 39 percent. As a result, the net share of Americans who say it is a good time to buy decreased 9 percentage points month over month to 13 percent. A year ago, the net for that question was 27 percent.

  There were fewer respondents who felt it was a good time to sell as well, down from 59 percent to 50 percent. The percentage who say it's a bad time to sell increased from 33 percent to 42 percent, pushing the net down 18 percentage points for the month and 35 points year-over-year to 8 percent.  

• The Mortgage IPO/LO Relationship

  IPO’s are still all the rage charging into 2021. Will these IPO’s have any impact on the originator? Will your mortgage company get bought up by one of these new heavily funded non-banking IPO mortgage companies? Will this IPO phenomenon create a trend or shift on how mortgage companies originate loans? Who knows? But, it’s […]

  The post The Mortgage IPO/LO Relationship appeared first on National Real Estate Post.

• David Stevens on Biden – CFPB – DPA – Looking Good!

  Today we interview David Stevens. Dave goes over what he’s looking at in 2021 for the mortgage and real estate space. You’ll be surprised to hear what his thoughts are on the CFPB for 2021, and, what he thinks we might see with respect to HUD and Down Payment Assistance. If things pan out the […]

  The post David Stevens on Biden – CFPB – DPA – Looking Good! appeared first on National Real Estate Post.

• Affordability Issues Expected to Dampen Home Price Gains

  Home prices rose another 1.1 percent in November according to the CoreLogic report on its Home Price Index. The year-over-year gain was 8.2 percent, accelerating from the annual increase of 7.3 percent posted for October. The company said that home price growth remained consistently elevated throughout last year. Home sales are expected to finish the year above their 2019 levels. Meanwhile, the availability of homes for sale has dwindled with increased demand as the pandemic deterred some potential home sellers from putting their homes on the market. While the pandemic has created a lot of financial insecurity, those households which maintained employment and income stability have also been incentivized by the record low rates to buy. This has further increased demand. The rise in home prices is increasing downpayment requirements and exacerbating affordability issues, leaving lower-income families renting and priced-out of the home-purchase market.

   

• Mortgage Application Volume Fell Sharply at the End of 2020

  The Mortgage Bankers Association (MBA) resumed reporting on mortgage applications today after a two-week holiday hiatus. Information on mortgage volume during the week ended December 31 is reported relative to the previous report covering the week ended December 18 but information on mortgage rates and application shares by loan types are compared to the week ended December 25. MBA's Market Composite Index, a measure of mortgage loan application volume, decreased 4.2 percent on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased 33 percent compared with two weeks ago. The refinancing appeared to bounce back from a big loss during the first week of the holiday season. The Refinancing Index, with an adjustment to account for the holiday, finished last week down 6.0 percent from its level during the week ended December 18 and was 100 percent higher than the same week in 2019. During the first week of the holiday period it had dropped 34 percent. Refinancing applications accounted for a 72.9 percent share of the week's activity.

   

• Housingwire CEO – Teams Have Leverage in 2021

  Today we interview Housingwire CEO Clayton Collins. We asked Clayton if he thinks we’ll see both mortgage and real estate professionals moving from big companies to small or from small to big in 2021. His answers were very insightful to say the least, so tune in and check it out. Oh, and, yeah, if you’re […]

  The post Housingwire CEO – Teams Have Leverage in 2021 appeared first on National Real Estate Post.

• Forbearances Slightly Elevated at the End of 2020

  The number of loans in COVID-19 forbearance plans last week rose for the third consecutive week during the period ended December 29. Black Knight said a 15,000-loan increase in the number of forborne loans brought the total to its highest level since early November. However, despite three consecutive weekly rises, the number of active plans only stands 13,000 higher than the same point in late November. Part of last week's increase was due to the limited number of loans removed from the rolls, the fewest since the start of the pandemic. A drop off in removals has been noted fairly consistently late in each month, but according to the company, may have been more pronounced during the holidays. There were nearly 270,000 plans due to expire at the end of December so the company says it is possible there will be a heightened  number of removals during this coming week.

   

• Residential Spending Continues to Lead Construction Numbers

  Total spending on construction projects in the U.S. rose 0.9 percent in November compared to October. The U.S. Census Bureau estimated that the seasonally adjusted annual spending on all types of construction was $1.459 trillion during the month compared to $1.447 trillion the prior month, an 0.9 percent increase. The rate was up 3.8 percent from annualized spending ($1.406 trillion) in November 2019. On an unadjusted basis, there was $123.452 billion spent during the month, down from $128.919 billion in October. For the first 11 months of 2020 expenditures had totaled $1.314 trillion, up from $1.259 trillion during the same period in 2019, a 4.4 percent gain.

   

• Pending Home Sales Slide a Bit After Banner Year

  Pending home sales slid for the third straight month in November and the 2.6 percent decline was the largest of the three. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), a leading indicator of sales of existing single-family homes, townhomes, condominiums, and cooperative apartments, dipped to 125.7 from its 128.9 level in October. The current PHSI is still the highest NAR's books for any November and was 16.4 percent higher than a year earlier The index had declined by 2.2 percent in September and another 1.1 percent in October, ending a four-month string of strong gains. Analysts had not expected a reversal of the current trend in November. Those polled by both Trading Economics and Econoday had expected the index to be unchanged from October.

   

• Happy 2021 Everyone

  Just a heads up. We’ll be taking this week off and returning next Monday. We’re on total lock down over here in Northern California and what’s more is it looks like Brian may have COVID. His daughter was diagnosed with it last week. Since there’s just a few days left in the year, and considering […]

  The post Happy 2021 Everyone appeared first on National Real Estate Post.

• Forbearance Numbers Rise for Second Week

  The number of forbearance plans increased again during the six-day period (shortened because of the holiday) ended December 21 and again Black Knight cautioned that small increases are common mid-month. The company said the 20,000-loan change was due to limited plan removals during the week. Extensions of plan terms outnumbered removals by more than five to one. Since the recovery began the larger declines have typically been early in the month as those plans that expired the prior month are removed. There are 376,000 plans set to expire at the end of December so Black Knight says there may be a "meaningful increase in removals" over the first two weeks of January. There are now just over 2.8 million homeowners in active forbearance or 5.3 percent of the 53 million active mortgages. These loans represent aggregate unpaid principal of $565 billion.

   

• Can a Grocery Store Really Affect Your Home's Value?

  As studies go, ATTOM Data Solutions Grocery Store Wars analysis is kind of silly. But at this point in this year, kind of silly is sort of welcome. Keep chickens and eggs in mind and make of this what you will. The company looked at how the proximity of different grocery stores might affect a home's value, both for homeowners and investors. They looked specifically at Whole Foods, Trader Joe's (TJ's), and ALDI. The analysis considered current average home values, 5-year home price appreciation from the same dates in 2015 to 2020, current average home equity, home seller profits, and home flipping rates in U.S. zip codes with a least one Whole Foods store, one TJ's store and (although one wonders if they mean "or" rather than "and") one ALDI store.

   

• Home Price Gains Continued Through October, Fastest Rate in 6 Years

  The headline for the October S&P CoreLogic Case-Shiller home price report is yet another month of escalating gains. The National Home Price Index which covers all nine U.S. census divisions posted an annual increase of 8.4 percent compared to a 7.0 percent change in September. The National Index posted a 1.4 percent month-over-month increase before seasonal adjustment and 1.7 percent afterward. The 10-City Composite Index was up 7.5 percent from the previous October and the 20-City Composite grew by 7.9 percent. Their September gains were 6.2 percent and 6.6 percent, respectively. The 10-City index was up 1.4 percent before seasonal adjustment and the 20-City posted a 1.3 percent change. Both composites rose 1.6 percent after adjustment.

   

• Proposed Rule to Require Gov't-Sponsored Agencies to Develop Contingency Plans

  The Federal Housing Finance Agency (FHFA) has released a notice of proposed rulemaking that would require Fannie Mae and Freddie Mac (the GSEs) to develop resolution plans. FHFA says these plans "would facilitate a rapid and orderly resolution should FHFA have to be appointed their receiver under the Housing and Economic Recovery Act of 2008." According to the press release, the proposal is designed to ensure the GSEs are prepared in the same way as financial institutions regulated by the Federal Reserve and the Federal Deposit Insurance Corporation to react to another adverse financial situation. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, larger institutions must submit living wills that detail how their core business lines would be maintained to prevent the kind of widespread disruption triggered by the failure of Lehman Brothers and Bear Stearns prior to the Great Recession.

   

• Stimulus Package is Horribly Diluted and Shameful

  Congress had about 2 hours to approve almost a $1Trillion stimulus package that provides only $600.00 to some Americans. What else was in that package? Get ready to be a bit miffed. Listen, unless you do something to get back into the purchase game, you’re not going to be very happy. Click the image below […]

  The post Stimulus Package is Horribly Diluted and Shameful appeared first on National Real Estate Post.

• New Home Sales Still Cooling... Still Stellar

  New home sales essentially fell of a cliff in November. The U.S. Census Bureau and the Department of Housing and Urban Development said on Wednesday that sales of newly constructed single-family homes, after slowing in September and October declined by 11.0 percent in November. Sales, on a seasonally adjusted annual basis were at a rate of 841,000 units compared to a revised estimate of 945,000 units in October. That month's sales were originally reported at 999,000 units. Even with three straight monthly losses, year-over-year new home sales are up 20.8 percent. Sales had been expected to decline, but not nearly so aggressively. Econoday's analysts had expected a number between 965,000 and 1,015,000 units with a consensus of 989,000. Trading Economics was looking for sales of 985,000, a 1.4 percent decline.

   

• Home Price Index Continues to Grow at Record Pace

  The rate of home price increases accelerated again in October from their already heightened pace. The Federal Housing Finance Agency (FHFA) said its House Price Index (HPI) rose 1.5 percent compared to September. This was down slightly from a 1.7 percent increase from August to September, however the annual increase jumped more than a point, from 9.1 percent in September to 10.2 percent. "U.S. house prices rose for the fifth straight month since states re-opened their local economies," said Dr. Lynn Fisher, FHFA's Deputy Director of the Division of Research and Statistics. "The 12-month gain of 10.2 percent in October is the highest annual appreciation observed since the 2004-2005 period. Extremely low mortgage rates and a limited supply of homes for sale continue to propel price gains. The data do not yet reflect renewals of some local and state COVID-19 restrictions."

   

• Your First and Most Important Call of 2021

  What’s your first and most important call of 2021? Tune in today and find out! Also, one of the most important things you can possibly do in 2021 is learn about every Non-QM product that’s available to you. Oaktree Funding will personally train yourself or your team or office on everything they have to offer. […]

  The post Your First and Most Important Call of 2021 appeared first on National Real Estate Post.

• Existing Home Sales Take a Pause After Five Months of Gains

  Existing home sales finally took a breather in November, breaking a five month stretch of gains, often substantial ones. The National Association of Realtors® (NAR) said that pre-owned single-family homes, townhomes, condos, and cooperative apartments sold at a seasonally adjusted annual rate of 6.69 million units, a 2.5 percent decline from October's 6.85 million pace. Sales were still 25.8 percent higher than the 5.32 million rate of sales in November 2019. Sales were slightly below the estimates of analysts polled by both Trading Economics and Econoday. They had forecast sales of 6.71 million and 6.72 million, respectively.

   

• Refis Continue to Dominate Mortgage Apps

  In its last report of 2020, the Mortgage Bankers Association (MBA) said refinancing represented nearly three-quarters of application activity during the week ended December 18 while purchase applications declined. MBA's Market Composite Index, a measure of mortgage loan application volume, increased 0.8 percent on a seasonally adjusted basis from one week earlier and was up 1 percent on an unadjusted basis. The Refinance Index increased 4 percent from the previous week and was 124 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 74.8 percent of total applications from 72.7 percent the previous week. The seasonally adjusted Purchase Index dropped by 5 percent from the previous week and was 7 percent lower unadjusted. Purchase activity was 26 percent higher than during the same week one year ago.

   

• Freddie Mac's YTD Purchases Top $1 Trillion

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 29.5 percent in November compared to a 25.7 percent gain in October. The portfolio balance at the end of the period was $2.689 trillion compared to $2.625 trillion the prior month and $2.302 trillion a year earlier. The growth rate for the year to date is 16.8 percent. Purchases and Issuances totaled $155.291 billion and Sales were ($4.080) billion. The October numbers were $137.285 billion and ($1.706) billion, respectively. Single-family refinance loan purchase and guarantee volume was $107.3 billion in November compared to $89.7  billion in October, representing a 74 percent share of total single-family mortgage portfolio purchases and issuances compared to 71 percent the previous month.

   

• 2021 Thoughts and Changes

  Today Brian goes over a handful of items for our consideration in 2021. For those of you who watch, we appreciate your viewership! We know we’re all busy this week getting ready for the holiday. Enjoy it! You deserve some time off at the end of the year! Have a great holiday!

  The post 2021 Thoughts and Changes appeared first on National Real Estate Post.

• Delinquency Rate Continues to Improve Despite Health Crisis

  While delinquencies are still elevated, especially those over 90 days, Black Knight's "first look" at November data notes a sixth consecutive monthly decline.  The national delinquency rate dropped from 6.44 percent in October to 6.33 percent, a -1.75 percent change. It remains 79.20 percent higher year-over-year.  The rate has fallen 1.5 percentage points from its peak of 7.8 percent in May but remains a full three percentage points (+93 percent) above pre-pandemic levels At the end of the reporting period there were 3.381 million mortgage loans that were 30 or more days past due but not in foreclosure. This is down by 56,000 loans for the month, but 1.5 million more delinquencies nationally than in November 2019. Black Knight includes loans in active forbearance plans in its delinquency statistics.

   

• Experts Say Homeowners Exiting Forbearance Will Need Outreach, Assistance

  The Urban Institute (UI) recently held a webinar with housing experts to look at distress in the housing market. In a report on the findings, researchers Jung Hyun Choi and Daniel Pang say that, as of November, 3.7 million homeowners who had taken advantage of forbearance as the pandemic began have left the programs while 3.2 million others continue to struggle. About 2.8 million remain in active forbearance while another 369,000 are delinquent on payments but are not in plans. Many of those in active forbearance have reached their sixth month, requiring them to either leave their plans or request an extension. UI reports there are many households which are delinquent but have not pursued any loss mitigation. There is a lack of homeowner awareness of payment options, and stark disparities in housing payment status by race, ethnicity, and income.

   

• FHA Extends COVID Relief Measures Until March

  The Department of Housing and Urban Development (HUD) has extended the timeframe for several of the relief programs it put into effect last spring through its Federal Housing Administration (FHA) to help lenders, servicers, and homeowners cope with the COVID-19 crisis. FHA's eviction and foreclosure moratoriums have been extended for an additional two months, through February 28, 2021. These moratoriums prohibit servicers from initiating or proceeding with foreclosure and foreclosure-related eviction actions for FHA-insured single family forward and reverse mortgages, except for those secured by legally vacant and abandoned properties. This is the fourth time these moratoriums have been extended.   

   

• Barry Habib – They’re Lyin’ About What They’re Buyin’

  Is the Fed lying about what they’re buying? What is this doing to the value of the US dollar? How does this impact real estate and mortgages? Where should we put our investment money? Is Bitcoin the the answer? Man, you’d better tune-in to this show. Get MBS Highway by clicking the banner below.

  The post Barry Habib – They’re Lyin’ About What They’re Buyin’ appeared first on National Real Estate Post.

• Favorable FHA Changes on the Way?

  Are there favorable FHA changes on the way? NAMB President Kimber White believes so. The new administration is bringing in a new HUD Secretary who is very “pro-consumer”. Could we see some DPA coming our way on our FHA deals? Too soon to know, but NAMB is going to push for some changes that will […]

  The post Favorable FHA Changes on the Way? appeared first on National Real Estate Post.

• FHFA Looking to Lock-In Fannie/Freddie Liquidity Rules

  In November, the Federal Housing Finance Agency (FHFA) released a new regulatory capital framework for Fannie Mae and Freddie Mac (the GSEs). At the time FHFA said the final rule fulfills Congress's mandate in the Housing and Economic Recovery Act of 2008 that FHFA establish risk-based capital requirements for the GSEs to ensure their safety and soundness by increasing the quantity and quality of their regulatory capital and reducing the pro-cyclicality of the aggregate capital requirements. This week the agency submitted for comments a companion rule regarding liquidity requirements for the two companies.

  The agency says its rule is designed to ensure that the GSEs are a source of strength for the mortgage market during downturns in the economy, and to incentivize them to issue an appropriate and stable mix of debt over the long term. The proposed rule takes into account the ...

• Freddie is Making the Switch to The Secured Overnight Financing Rate (SOFR)

  Freddie Mac is touting its readiness to transition from using the London Interbank Offered Rate or LIBOR to the Secured Overnight Financing Rate (SOFR) as a mortgage reference index. The end date for LIBOR may be extended (yet again) from the end of 2021 to mid-2023, but Freddie Mac says it remains committed to prepare for a final transition as soon as possible. SOFR, which was specifically developed to replace LIBOR, is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. Because, unlike LIBOR, it is collateralized, its rate tends to be lower. Over the last month it has ranged between 0.05 and 0.09 percent. The New York Fed publishes the SOFR on its website each business day.

   

• Forbearances Rise, True to Mid-Month Pattern

  There was an increase in the number of loans in forbearance over the last week as the share within all lender portfolios, even the GSEs', moved higher. Black Knight said, however, that an uptick in mid-month has become common, generally driven by fewer borrowers exiting their plans. This was true this past week as well. The strongest declines tend to occur at the first of each month, as plans that expired at the end of the previous month are removed. The company says there are more than 550,000 plans set to expire at the end of December, so there should be more positive news about plan removals in the first week of January. The total number of mortgages in active plans rose by 37,000 during the week ended December 15. There are 2.787 million forborne loans or 5.3 percent of the nation's 53 million mortgages now in plans. These loans represent $563 billion in unpaid principal. 

   

• Builder Confidence Pulls Back from Record Levels

  After setting successive survey highs in September, October, and November, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) retreated a bit this month. The HMI, which is a measure of home builder confidence in the new home market, fell 4 points to 86. Despite this decline, it was still the second highest reading in the HMI's 35-year history. Only the November 2020 reading of 90 was higher.

  NAHB economist Robert Dietz said, "Housing demand is strong entering 2021, however the coming year will see housing affordability challenges as inventory remains low and construction costs are rising.

  "The issues that have limited housing supply in recent years, including land and material availability and a persistent skilled labor shortage, will continue to place upward pressure on construction costs. As the economy improves with the deployment of a COVID-19 vaccine, interest rates will increase in 2021, further challenging housing affordability in the face of strong demand for single-family homes."

• Yes, The AVERAGE Loan is Taking Almost 2 Months to Close

  According to Ellie Mae's Origination Insight Report, loans closed during November had an average note rate of 2.97 percent. The 30-year note rate for FHA and Conventional loans dropped below the three percent mark for the first time, averaging 2.99 percent. The note rate on VA loans continued to decrease, hitting 2.72 percent. Refinances constituted 61 percent of total closed loans in the month, 1 point more than in October and 12 points higher than the November 2019 level. The distribution of loans across lenders held relatively steady with conventional loans accounting for 82 percent of total originations and FHA at 10 percent, both unchanged from the previous month. The share of VA loans increased from 5 to 6 percent.

   

• Housing Permits and Starts Show no Signs of Slowing Down

  While housing completions were down, residential construction improved again in November. Permitting was especially strong with a 6.2 percent month-over-month increase. The U.S. Census Bureau and Department of Housing and Urban Development reported that permits were issued at a seasonally adjusted annual rate of 1,639,000 during the month. This was 8.5 percent higher than the permitting level in November 2019. The earlier October estimate was revised down by 1,000 units to 1,544,000. Analysts polled by Econoday had predicted that permits would be in a range of 1,480,000 to 1,580,000 with a consensus of 1,553,000. The forecast from Trading Economics was 1,550,000.

   

• CA Brokers Sue UWM Over EPO’s

  A handful of California mortgage brokers have started a class action lawsuit against United Wholesale Mortgage claiming that UWM unlawfully changed their EPO policy on them. The lawsuit comes on the eve of the UWM IPO. In other news mortgage brokerage industry leader Don Frommeyer has died from COVID-19. Don was a good friend of […]

  The post CA Brokers Sue UWM Over EPO’s appeared first on National Real Estate Post.

• Upgraded Economic Outlook, But is Stellar Housing Sustainable?

  A recent spate of positive news has allowed Fannie Mae to upgrade several pieces of its economic forecast this month. The approval of at least one COVID-19 vaccine, new hope for additional stimulus approval, and stronger than expected incoming data has pushed the company's economists to upgrade their outlook for real gross domestic product (GDP) to negative 2.2 percent for the full year 2020, up from a negative 2.5 percent in their November version. The change for 2021 is more substantial, from 3.3 percent to 4.5 percent. Growth in 2022 has been raised two-tenths of a point to 3.2 percent. The economists say, "We continue to believe that the conditions for a continued, strong recovery are present once the limiting factors of COVID-19 on consumer behavior are lifted."

• New Home Sales Declined in November as Economic Recovery Slows

  The Mortgage Bankers Association (MBA) says applications for new home purchases suffered a significant downturn in November but remain well above the level of activity at the same time in 2019. MBA's Builder Application Survey (BAS) shows a 16 percent decline in applications from October to November. This does not include any seasonal adjustment. Applications were up 34.7 compared to November 2019. Based on the applications and other data, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 827,000 units during the month, a decrease of 10.8 percent from the October pace of 927,000 units. On an unadjusted basis, MBA estimates that there were 59,000 new home sales in November 2020, down 15.7 percent from 70,000 sales in October.    "November new home sales activity, both mortgage applications and home sales, ran at a pace considerably ahead of 2019, showing the ongoing strong growth in housing demand and new residential construction," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "However, MBA estimates that after climbing to a new survey high in October, the seasonally adjusted pace of new home sales declined in November. Signs of a slowdown in the economic recovery likely contributed to the expected monthly decrease in activity."    

• Mortgage Application Volume Holds Steady as Rates Test Lows

  Mortgage application volume was relatively flat as the nation eased into the holiday season. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, rose 1.1 percent on a seasonally adjusted basis during the week ended December 11. On an unadjusted basis the increase was 0.4 percent. The Refinance Index increased 1.0 percent from the previous week and was 105 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 72.7 percent of total applications from 72.0 percent the previous week. The Purchase Index rose 2.0 percent on both an adjusted and an unadjusted basis. Volume was 26 percent higher than during the same week in 2019. "U.S. Treasury rates stayed low last week, in part due to uncertainty over the prospects of additional pandemic-related government stimulus, as well as concerns about the continued rise in COVID-19 cases across the country. Mortgage rates as a result fell to another survey low, with the 30-year fixed mortgage rate dropping five basis points to 2.85 percent," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Homeowners once again acted on the decline in rates, with refinance activity rising for the second straight week and up 105 percent from a year ago."  

   

• Fannie Mae Extends Some Ease due to COVID

  Fannie Mae has extended a couple of policies that make things a little easier for us as loan officers through the end of the year due to COVID. We also cover a few other items worth noting as well in this episode. And don’t forget, if you’re a wholesale account executive and you don’t have […]

  The post Fannie Mae Extends Some Ease due to COVID appeared first on National Real Estate Post.

• Lender Sentiment Wanes Along With Housing Demand

  Fannie Mae's Q4 Mortgage Lender Sentiment Survey (MLSS) found lenders lowering their expectations for profits over the next three months. Only 19 percent of those responding to the survey think their profit margins will increase, one-third expect no change while 48 percent are looking for a decline. In the third quarter survey 48 percent were expecting their profits to grow. Fannie Mae says this is a change from the prior six quarters in which lenders indicated increasingly optimistic profitability expectations. Lenders reported that consumer demand remained strong in the fourth quarter for all loan types. Demand for purchase mortgages set a new survey high for GSE-eligible loans and a new fourth-quarter survey high for government loans. Looking ahead, purchase mortgage demand expectations fell compared to the prior quarter but reached new highs for any fourth quarter in the survey's history. For refinances, lenders reported that consumer demand fell on both a looking-back and looking-ahead basis across all loan types but generally remains strong.

• Ready for the New 1003?

  Are you ready for the new 1003? You’ve got till March to be fully engaged with it. It’s literally 10 pages long now and it’s all switched around. The good news is NAMB is offering a webinar with Freddie Mac this Thursday where you’ll learn it inside and out. It’s a good idea to get […]

  The post Ready for the New 1003? appeared first on National Real Estate Post.

• Realtor Survey Shows Promise: Post-Pandemic Recovery Will Continue

  Twenty-three housing and economic experts have told the National Association of Realtors® (NAR) they expect the post-pandemic economic rebound to continue, with improving job conditions and stable interest rates in 2021.  NAR's chief economist Lawrence Yun revealed the results of a 2- person survey last week at NAR's second annual Real Estate Forecast Summit. The group of experts predicted that the Gross Domestic Product (GDP) would grow by 3.5 percent in 2021 and 3.0 percent the following year and unemployment would average 6.2 percent next year, declining to 5.0 percent in 2022. Low mortgage rates will persist over the next two years, although not at today's sub-3.0 percent level. They forecast an increase to 3.0 percent and 3.25 percent in 2021 and 2022, respectively. Ninety percent of those surveyed said they expect the federal funds rate to remain at zero next year with a 0.25 percent increase in 2022.

   

• 80% Annual Decline in Foreclosures Show Prevention Measures are Working

  The various types of foreclosure filings - default notices, scheduled auctions, and actual lender repossessions - declined in November. RealtyTrac, a subsidiary of ATTOM Data Solutions said the aggregate of these legal actions totaled 10,042 during the month. This is a decline of 14 percent from October and 80 percent from a year earlier. Much of the downturn can be attributed to the foreclosure moratoria which have been extended beyond the end of this year. "It's not unusual to see foreclosure activity slow down beginning in November and through the holiday season," said Rick Sharga, executive vice president at RealtyTrac, an ATTOM Data Solutions company. "Both foreclosure starts and repossessions were down about 80 percent on a year-over-year basis, but it might be worth noting that a few cities that may be vulnerable to the pandemic-driven flight from urban areas to the suburbs - like New York City, Chicago, and Miami - were among the markets with the highest levels of foreclosure actions."

• Barry Habib – Math is Hard

  Math is hard… for some… but not for Barry Habib. Tune in today to see what we’re talking about. Is home affordability getting tougher as being portrayed by the media? Nope. But, math is hard for some people. Today Barry shows us the real math, which really isn’t very hard, revealing that affordability is doing […]

  The post Barry Habib – Math is Hard appeared first on National Real Estate Post.

• Forbearance Numbers are Trending Higher

  While the number of mortgages in forbearance saw some week-over-week improvement during the most recent reporting period, the overall trend is not good. Black Knight said there was a decline of 12,000 loans in active plans during the week ended December 8, driven almost entirely by an exodus from bank portfolios and private label securities (PLS). However, there was a monthly increase in the numbers for the first-time number of plans increased over the last month for the first time since mid-spring and first-time starts also rose. The company reports that, as of last Tuesday there were 2.75 million active forbearance plans, 5.2 percent of the 53 million loans in servicer portfolios. These loans represent $558 billion in unpaid principal.

   

• Wicked Awesome Webinar on Lead Conversion on Friday

  Lab Coat Agents has 3 training webinars a week. These trainings are extremely valuable for real estate agents. Click the LCA logo below to see what’s going on each and every week. These are also valuable for loan officers as you can send interesting trainings to your agents. Bottom line, if your agents do well, […]

  The post Wicked Awesome Webinar on Lead Conversion on Friday appeared first on National Real Estate Post.

• Home Equity Grew $1T This Year, Breaking Six-Year Records

  Homeowner equity rose again in the third quarter of 2020, reaching the highest total in over six years. CoreLogic's quarterly report on that asset says that those homeowners with mortgages, about 63 percent of the total, saw their equity grow by 10.8 percent since the third quarter of 2019. This equates to an increase in homeowner wealth of about $17,000 per household, the largest since the first quarter of 2014, and an aggregate national gain of about $1 trillion. At the same time, the number of mortgages that were in negative equity fell by 18.3 percent on an annual  basis.

   

• The Great 2020 COVID Migration

  There has never been so much movement around the country than now. People are working remotely so their rolling up their tents and moving to Texas! Texas, and other places, but the point is they’re moving. Are we positioned to get a piece of that “moving pie?” Hopefully so! Thinking on making a move in […]

  The post The Great 2020 COVID Migration appeared first on National Real Estate Post.

• Refi Applications Surge as Mortgage Rates Test New Lows

  A decline in purchase applications pulled overall volume lower during the week ended December 4. The Mortgage Bankers Association said its Market Composite Index declined 1.2 percent on a seasonally adjusted basis but was up 40 percent on an unadjusted basis compared to the previous week. The latter results had included an adjustment to account for the Thanksgiving holiday. The Purchase Index fell by 5.0 percent after adjustment but rebounded by 29 percent afterward when compared to the holiday week. It was up 22 percent from the same week in 2019. The Refinance Index increased 2 percent week-over-week and was 89 percent higher than a year earlier. The refinance share of mortgage activity increased to 72.0 percent of total applications from 69.5 percent the previous week.

• Credit Standards Finally Ease Up in November

  The Mortgage Bankers Association (MBA) said access to mortgage credit improved in November for the first time in several months but is still only about two thirds of its pre-pandemic levels. MBA's Mortgage Credit Availability Index (MCAI) gained 0.7 percent compared to October, rising to 1.22.2. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The MCAI has component indices for each major loan type. The Conventional MCAI increased 1.3 percent and the Government index rose 0.3 percent. The two component indices of the Conventional MCAI, the Jumbo MCAI and the Conforming MCAI gained 1.6 percent and 0.9 percent, respectively.  

   

• 110,000 Small Businesses Wiped Out

  110,000 small businesses have been wiped out due to COVID-19. It’s super important for all of us in the real estate and mortgage industries to support the small businesses in our areas of operation, especially during this holiday shopping season. Let’s see what we can do. Get going with Non-QM by reaching out to an […]

  The post 110,000 Small Businesses Wiped Out appeared first on National Real Estate Post.

• Tight Housing Supply, Soaring Prices, But Condos Are The Exception

  The pandemic keeps manifesting itself in the housing market in small but potentially significant ways and there was another data point in Black Knight's new Mortgage Monitor report. The report focuses on delinquencies, price increases, and the continuing inability of servicers to retain customers in the refinancing frenzy. However, it also notes some differences that seem to be developing in pricing, inventory, and delinquencies in the condominium sector. These may be related to the perceived trend for homebuyers to seek out less dense living situations to protect themselves and their families against exposure to the COVID-19 virus, to want to be able to spend more leisure time outdoors for the same reason, needing more space for working and learning at home, and for commuting time to be of less concern given the acceptance of remote work. While these trends are impacting all types of housing, Black Knight says, "the pandemic has shaped the condominium market in an inverse way."

   

• The Refi Boom is Keeping Elevated Delinquencies in Check

  While the rate of non-current loans remained sharply higher than a year ago, CoreLogic reports that serious delinquencies, loans more than 89 days past due, began to level off in September for the first time since the start of the pandemic. The company's Loan Performance Report puts the national delinquency rate, loans 30 or more days past due including those in foreclosure, at 6.3 percent. This is 2.5 points higher than the 3.8 percent rate in September 2019. Loans in the earliest stage of distress, 30 to 59 days past due, accounted for 1.5 percent of active mortgages, down from 1.9 percent in September 2019 and 4.2 percent in April when early stage delinquencies spiked due to the COVID-19 pandemic. The rate for loans 60 to 89 days delinquent is 0.1 percentage point higher than a year earlier at 0.7 percent but has declined from 2.8 percent last May when that delinquency bucket hit a recent high.

• Buyers and Sellers Divided as Pandemic Wears Down Housing Expectations

  After climbing for three straight months Fannie Mae's Home Purchase Sentiment Index (HPSI) stalled in November, declining 1.7 points to 80.0. The index based on six questions from the National Housing Survey, was 11.5 points lower than in November 2019. The two most closely watched components of the index are those which measure consumers attitudes toward buying or selling a home and they diverged during the month. Those who thought it was a good time to buy dropped from 60 to 57 percent while those who said it was not a good time remained at 35 percent. This left the net good time responses at 22 percent, a 3-percentage point loss for the month and 10 points lower on an annual basis.

   

• Fannie Mae Gets Tighter with Self-Employed Borrowers

  Fannie Mae is requiring more bank statements on self-employed borrowers now which is a sign of the times. Self-employed borrowers are getting hit the worst in the COVID environment. Requiring more from them makes sense from a risk standpoint on FNMA’s part, but seems like it isn’t very fair to the self-employed borrower that’s doing […]

  The post Fannie Mae Gets Tighter with Self-Employed Borrowers appeared first on National Real Estate Post.

• Innovations in Home-Buying Process May be Fueling Pricing Frenzy

  A noted housing researcher has analyzed the current frenzy of home buying and the rapidly escalating prices since the country emerged from its short-lived spring pandemic shutdown. Issi Romem, Senior Director of Housing & Urban Economics at Zillow, and a fellow at the Terner Center for Housing Innovation at the University of California, Berkley, explains his different take in an article in the New York Times. Romem looks beyond the usual suspects, reasons commonly cited for the superheated market, not totally dismissing them, but finding a few new ones to credit, or blame, for what is going on. He also says some of the explanations given for increased market activity are playing far less of a role than presumed. For example, he asks why the perceived motivation of consumers to acquire more space to work and play safely which seems to translate in a flight from urban to suburban and rural locations. This should disturb the market balance and drive up prices. Instead, he says, should should contribute to both supply and demand.

• Ready for the New CFPB? You’d Better Be.

  Are you ready for the new CFPB? You’d better be. With a Biden administration things are going to change when it comes to the agency. Are you compliant? It’s time to go through everything we’re doing and make sure you are. Remember the old days of the CFPB where it was judgement first then your […]

  The post Ready for the New CFPB? You’d Better Be. appeared first on National Real Estate Post.

• Lots of Similarity But Some Surprising Differences Between Rents and Home Prices

  An analysis published on Black Knight's blog indicates that rents and home prices don't always rise or fall in tandem. The company says comparing trends between the two can sometimes be an apple and oranges situation; they are similar in some respect but vastly different in others.

  In Orange County, California for example, median sale prices for single-family home prices and monthly rent for them in Orange County California, look, at first glance, to be on the same trajectory, which is a fair long-term conclusion. However, a closer examination of the graph below shows larger divergences between them in short-term bursts.

• Over 80% of Forbearance Plans are Being Extended

  Mortgage forbearances for homeowners affected financially by the pandemic declined slightly over the past week. Black Knight said that there were 200,000 plans scheduled to expire at the end of November, probably accounting for the majority of the 39,000-loan downturn in the various forbearance programs. Another 1 million plans are due to expire at the end of this month. As of December 1, there were a total of 2.76 million loans remaining in plans, 5.2 percent of the 53 million active mortgages in servicer portfolios and representing $561 billion in unpaid principal. Eighty-one percent of those loans have had their terms extended at some point since March.

   

• Barry Habib vs Fannie Mae vs MBA on 2021 Rates

  Prognosticating mortgage rates can be quite a juggle. Will the mortgage market proceed full steam ahead with rates at the same level or lower going into 2021 or will they move up? Tune in today to see what Barry Habib has to say about it. Are you a loan officer feeling like the crunch is […]

  The post Barry Habib vs Fannie Mae vs MBA on 2021 Rates appeared first on National Real Estate Post.

• FHA Loan Limits Move Up To A Floor of $356,362

  The Department of Housing and Urban Development (HUD) has published its 2021 Forward Mortgage Limits for FHA loans. The FHA limits are based on the Federal Housing Finance Agency's (FHFA's) conforming limits for Fannie Mae and Freddie Mac loans; however, they are individualized by locality and cover a much wider range.

  HUD sets a floor for the lowest cost areas and a ceiling for high cost areas. Limits fall within those two ranges. The agency determines whether an area is considered high cost or low cost by the median sales price of homes at the county level. Where a property is inside a Metropolitan Statistical Area (MSA)  the county within the MSA with the highest median price determines the outcome for the entire MSA.

  Last week FHFA (not to be confused with FHA) announced it has raised its 2021 conforming limit by 7.42 percent based on that increase in its House Price Index from the third quarter of 2019 to the same quarter in 2020. That resulted in a new conforming limit of $548,250. FHA uses that figure to compute its floor and ceiling.

• The Minority Lending Dilemma Ahead

  There could be a big dilemma ahead with respect to lending to minorities. With the new administration coming in, racial equality is going to be a big part of their agenda. This will absolutely impact housing, specifically mortgage lending. Hopefully the government will find a way to help lenders so they can help minorities without […]

  The post The Minority Lending Dilemma Ahead appeared first on National Real Estate Post.

• Residential Sector Was Key to October Construction Spending Increase

  Total construction spending in October was at a seasonally adjusted annual rate of $1.439 trillion according to U.S. Census Bureau estimates. This was an increase of 1.3 percent from the revised September estimate of $1.420 trillion and 3.7 percent higher than spending in October of 2019. While virtually all residential spending is privately funded, the increase in that sector was the second largest (behind public safety spending) of any in the overall year-over-year comparison. Spending for the month, prior to adjustment, totaled $128.008 billion compared to $130.251 billion in September. Spending for the year-to-date (YTD) is up 4.3 percent, from $1.140 trillion in 2019 to $1.190 during the first 10 months of 2020.

   

• Home Purchase Activity up 9% Despite a Slow Holiday Week

  There was the usual disruption to mortgage application activity during the Thanksgiving holiday week that ended November 27, although the volume, especially of purchase applications held up relatively well. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, eased back by 0.6 percent on a seasonally adjusted basis from one week earlier and was down 32 percent absent adjustment. During Thanksgiving week in 2019 the adjusted Index fell by more than 9.2 percent. The Refinance Index decreased 5 percent from the previous week but was 102 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 69.5 percent of total applications from 71.1 percent the previous week. The seasonally adjusted Purchase Index increased 9 percent from one week earlier but was down by 28 percent on an unadjusted basis. Activity was 28 percent higher than the same week one year ago.

   

• Lost Money is Rampant in Mortgage and Real Estate

  There’s so much lost money within the mortgage and real estate industries. It can be easy to blame salespeople for being lazy or unmotivated, but is that really the reason there’s so much money being lost for so many loan officers and real estate agents. No, it’s not. It’s a matter of alignment. Tune into […]

  The post Lost Money is Rampant in Mortgage and Real Estate appeared first on National Real Estate Post.

• Dig Out the Mittens - December Offers the Best Home Buying Bargains

  While this COVID-19 positive year has certainly been an exception, spring is usually considered the optimum time, on both sides of the transaction, to buy or sell a home. A new study, by ATTOM Data Solutions, indicates that one side of the equation could be losing money. Indeed, the company says, "Buyers willing to close in December and January avoid prices well above market value." The company looked at any calendar day over the period of 2013 to 2019 where there were 10,000 single-family or condo transactions and found 362 days that matched that criteria with the exceptions being all holidays - January 1, July 4, November 11, and December 25. They then compared the median sales prices of homes that closed on that day with the automated valuation model (AVM) for those same homes at the time of sale. There were more than 27 million single-family home and condo sales included in the seven-year analysis.

   

• Loan Limits Increase Nearly 7.5 Percent

  The Federal Housing Finance Agency (FHFA) has released the new conforming loan limits which will be in place next year for mortgages acquired by the GSEs Fannie Mae and Freddie Mac.  In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, an increase from $510,400 in 2020.  The Housing and Economic Recovery Act (HERA) requires that the baseline CLL be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price as reported by FHFA's House Price Index (HPI).  According to the seasonally adjusted, expanded data HPI published last week, house prices increased 7.42 percent, on average, between the third quarters of 2019 and 2020.  Therefore, the baseline maximum CLL will increase by the same percentage.  The maximum loan limit in some areas is considered high cost, that is where 115 percent of the local median home value is higher than the baseline CLL, is also established by HERA. It uses a multiple of the area median home value but sets a "ceiling" at 150 percent of the baseline loan limit.  The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375 or 150 percent of $548,250.  There are special provisions in HERA that sometimes provide different limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. However, in 2021 those areas will also have the $822,373 ceiling. 

• October's Home Price Gains Break a Six-Year Record

  That the rapid rise in home prices since spring is setting near decade long highs was confirmed again this week, this time by CoreLogic. The company says its Home Price Index (HPI) rose 7.3 percent over the 12 months that ended in October and was the was the fastest rate of appreciation since April 2014. Prices were up 1.1 percent month-over-month. The company says that home prices climbed in recent months due to heightened demand and ongoing home supply constraints. This could grow worse if the pandemic worsens and potential sellers hold off listing their homes. There is hope, however, for meeting some of the demand. New home construction surged in October and the National Association of Home Builders reported its index measuring home builder confidence in the new home market set a third record high in as many months. While prices are rising rapidly on a nationwide basis, local markets continue to vary. Phoenix has a severe shortage of for-sale homes and prices there posted a 2.1 percent annual increase in October. Meanwhile, the New York-Jersey City-White Plains metro saw prices rise only 2.1 percent as residents continue to seek out more space in less densely populated areas. At the state level, Maine, Idaho, and Arizona experienced the strongest price growth in October, up 14.9 percent, 13.1 percent, and 12 percent, respectively.

   

• October Pending Home Sales Continue Their Decline

  Pending home sales, which ended a four-month streak of gains in September with a 2.2 percent decline, slipped further in October. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), a measure based on contracts signed during the month to purchase existing single-family homes, townhomes, condos, and cooperative apartments, was down 1.1 percent compared to the previous month. The index, now at a 128.9 level, remains 20.2 percent higher than in October 2019. Analysts had been expecting a rebound in the forward-looking indicator. Those polled by Econoday had forecast over a range of a 1.0 percent increase to 3.9 percent with a consensus of 2.0 percent. Trading Economics had predicted a 1.0 percent gain. "Pending home transactions saw a small drop off from the prior month but still easily outperformed last year's numbers for October," said Lawrence Yun, NAR's chief economist. "The housing market is still hot, but we may be starting to see rising home prices hurting affordability."

   

• Forbearances Trending Slightly Higher, Well Below 2020 Peak Levels

  Despite a second consecutive modest weekly increase, the number of loans in forbearance continue to trend well below those at the peak of the COVID-19 pandemic. Black Knight said there was an uptick of 27,000 loans in forbearance plans during the period ended November 23. That reporting period was one day shorter than the usual week in preparation for the Thanksgiving holiday. The company reminds readers that "mild increases like this have been common in the middle of the month. Since the recovery started, the strongest declines have typically been seen early in the month, as expiring forbearance plans are removed."

   

• New Home Sale Refuse to Back Down From 14-year highs

  Sales of newly constructed single-family homes slipped slightly in October; the second month sales have declined. The U.S. Census Bureau and Department of Housing and Urban Development reported that the month's sales were at a seasonally adjusted annual rate of 999,000, a decrease of 0.3 percent compared to September's revised sales of 1,002,000. New home sales in October were 41.5 percent higher than those in October 2019. Both August and September sales numbers were revised higher in this month's report. September's sales were originally reported at 959,000 and August sales, which had been revised down to 994,000 from a much higher original rate, were boosted back up to 1,001,000. October's sales were higher than expected. Analysts polled by Econoday had forecasts over a range of 935,000 to 1,035,000 with a consensus of 975,000. The forecast from Trading Economics was 970,000.

   

• Freddie Mac on Track For 25% More Loans This Year, Most of Them Refis

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 25.7 percent in October compared to a 17.5 percent gain in September. The portfolio balance at the end of the period was $2.625 trillion compared to $2.579 trillion the prior month and $2.301 trillion a year earlier. The growth rate for the year to date is 15.2 percent. Purchases and Issuances totaled $137.285 billion and Sales were ($1.706) billion. The September numbers were $114.386 billion and ($3.064) billion, respectively. Single-family refinance loan purchase and guarantee volume was $89.7 billion in October compared to $70.9  billion in September, representing a 71 percent share of total single-family mortgage portfolio purchases and issuances compared to 69 percent the previous month.

   

• Happy Thanksgiving from NREP

  We hope you all have a great holiday weekend! We’ll be back on Tuesday, but we’ll find interesting stuff to send along the way!

  The post Happy Thanksgiving from NREP appeared first on National Real Estate Post.

• September Home Price Gains Blow Away Forecasts

  Annual price increases in September were quite literally off the charts. Both the S&P CoreLogic Case-Shiller National Index and the Housing Market Index from the Federal Housing Finance Agency (FHFA) recorded annual appreciation of at least 7 percent. The Case-Shiller National Index, which covers all nine U.S. census divisions, reported a 7.0 percent annual gain in September, up from the August increase of 5.8 percent.   The National Index posted 1.2 percent month-over-month growth before seasonal adjustment and 1.4 percent afterward. As has been the case since the beginning of the pandemic, housing data from Wayne County, Michigan where Detroit is located has been insufficient to include the city in the indices. The 10-City Composite annual increase came in at 6.2 percent and the 20 City at 6.6 percent. The two composites had appreciated in August by 4.9 percent and 5.3 percent, respectively. On a monthly basis the 10-City increased 1.3 percent before adjustment and 1.2 percent afterward, while the 20 City's gains were the reverse, rising 1.2 percent before adjustment and 1.3 percent afterward. In September, all 19 cities (excluding Detroit) reported increases before and after seasonal adjustment.

   

• Refi Applications Hit 7 Month Highs

  Refinancing increased its already overwhelming dominance of the mortgage market during the week ended November 20. The Mortgage Bankers Association (MBA) said the refinancing share of mortgage applications topped 70 percent and refinancing accounted for most of the weeks increased volume. MBA's Market Composite Index, a measure of mortgage loan application volume, increased 3.9 percent on a seasonally adjusted basis from one week earlier and was 3 percent higher unadjusted. After being essentially flat since the end of October, the Refinance Index increased 5 percent last week and was 79 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 71.1 percent of total applications from 69.8 percent the previous week.

   

• NAR DOJ Settlement – Any Big Deal?

  Is the NAR DOJ settlement any big deal? In our opinion, not really, but the one thing that stands out to us is the part where you don’t have to be a real estate agent affiliated with a NAR MLS in order to have access to a lock box. We think that’s looking for trouble. […]

  The post NAR DOJ Settlement – Any Big Deal? appeared first on National Real Estate Post.

• Pandemic Causing Almost Half of Americans to Consider a Move

  A recent survey by Lending Tree found that nearly half of Americans are thinking about moving in the not-to-distant future and it appears that the COVID-19 pandemic may be at least part of their motivation. Crissinda Ponder writes that the health crisis has affected nearly every aspect of daily life, and with 11 million Americans unemployed, residents make an exodus from major cities, a desire for more living space. There is no reason to think that housing choices would be any less affected. The Lending Tree survey covered 2,000 consumers and 46 percent said they were thinking about relocating within the next year. Twenty-seven percent are considering a new home in their current area, with a primary motivation of reducing their living expenses. Another 12 percent would consider a nearby city, while 8 percent would like to move to a new state.

   

• Barry Habib – Housing Market is Steaming

  The housing market is steaming and from the looks of it, it’s going to continue for a while according to Barry Habib. Tune in today to learn a lot of great information. But the way it’s looking, real estate and mortgage in 2021 is going to be a royal flush. Click the MBS Highway banner […]

  The post Barry Habib – Housing Market is Steaming appeared first on National Real Estate Post.

• Delinquencies Fell in October, but Still Nearly Double Those Last Year

  Black Knight, in its "first look" at the month's loan data, says that mortgage delinquencies improved for the fifth consecutive month in October. The national delinquency rate fell another 3.3 percent from September to 6.44 percent, the lowest rate since last March. There were 3.437 million mortgages nationwide that were 30 or more days past due but not in foreclosure in October, down 105,000 loans in a month. Despite the five months of improvement, however, the national delinquency rate is 90 percent higher than in October 2019, and the number of loans in the 30-day delinquency bucket is 1.651 million larger year-over-year. Black Knight's delinquent loan totals include those in active forbearance plans.

   

• Forbearance Totals Edge Up After Two Week Decline

  The forbearance plan rolls expanded slightly over the past week, reversing two weeks of falling numbers. Black Knight said the total of loans in approved plans, which had declined by 273,000 over the previous two weeks, rose by 30,000. This brings the number of forborne loans to 2.77 million or 5.2 percent of the country's 53 million active mortgages. Even with this uptick, the situation is much improved from the peak of 4.76 million loans in late May of this year and the number is down by 212,000 or 7 percent just from the same time in October. The greatest increase over the week was in loans serviced for FHA and the VA, up by 15,000 loans. Loans serviced for portfolio lenders or private label securities (PLS) were close behind with an increase of 14,000 plans while the GSEs Fannie Mae and Freddie Mac added 1,000 forborne loans to their totals.

   

• Real Estate & Mortgage Soars But Many are Left Behind

  The real estate and mortgage industries are soaring but many are being left behind. The affluent are able to deal with COVID shut down’s with ease but working class service providers are getting left behind. How is the new administration going to deal with this? Today we speak with NAMB President Kimber White and get […]

  The post Real Estate & Mortgage Soars But Many are Left Behind appeared first on National Real Estate Post.

• Home Sales Defy Expectations, Crushing Another 14 Year Record

  The hot home sales market continued unabated in October. The National Association of Realtors® (NAR) reports that existing home sales grew for the fifth consecutive month and 72 percent of homes that sold were on the market for less than a month. Single-family houses, townhouses, condos, and cooperative apartments sold in October at a seasonally adjusted annual rate of 6.85 million units. This was an increase of 4.3 percent from the September pace and 26.6 percent above the rate of 5.41 million sales in October 2019. Single-family home sales rose 4.1 percent to a seasonally adjusted annual rate of 6.12 million, up from 5.88 million in September. This was 26.7 percent above the pace a year earlier. The annual sales rate for existing condominium and co-ops was up 5.8 percent and 25.9 percent from the two earlier periods to 730,000 units.

   

• Mortgage Regulator Finalizes Capital Requirement Rule

  The Federal Housing Finance Agency (FHFA) has reached another milestone as it tries to resolve the 12-year conservatorship of the GSEs. On Wednesday it released a new regulatory capital framework for Fannie Mae and Freddie Mac. The final rule, a revision of a proposal made in 2018, reflects the 128 comments made on the 2018 proposal and well as other outreach to stakeholders.

  FHFA says the final rule fulfills Congress's mandate in Housing and Economic Recovery Act of 2008 that FHFA establish risk-based capital requirements for the GSEs. It is intended to ensure their safety and soundness by increasing the quantity and quality of their regulatory capital and reducing the pro-cyclicality of the aggregate capital requirements.

• Average Loan Taking Almost 2 Months to Close, But With Record Low Rates

  Ellie Mae said the interest rate across all closed loans dropped  below 3 percent for the first time in the nine years the company has been tracking the data. Ellie Mae is now a part of ICE Mortgage Technology, a division of Intercontinental Exchange, Inc., a NYSE listed firm.

  The company's Origination Insight Report shows that the 30-year note rate for VA loans was 2.75 percent, 3 basis points lower than in September, while the Conventional rate dipped from 3.02 percent to 3.01 percent and FHA loans held steady at 3.01 percent. The rate across all loans was 2.99 percent.

  With rates so low, refinances continued to dominate originations, reaching 60 percent of total closed loans in the month, up from 58 percent in September. This bested the 2019 high, which also was in October, by 9 percentage points but is well below the peak 2020 share of 65 percent in both April and May.

• MBA Sees Huge 2021 for Purchase Biz

  The MBA sees a huge 2021 for purchase leads. This brings us to what we always say, “you’d better be taking care of your referral partners if you’re an LO”. If you need help getting in the door with a real estate agent or two, Listing Booster is exactly the product you need. Click the […]

  The post MBA Sees Huge 2021 for Purchase Biz appeared first on National Real Estate Post.

• Strong Construction Data Led by Single Family Homes

  Residential construction data for October was mixed. The U.S. Census Bureau and Department of Housing and Urban Development reported that the rate of permitting flattened and completions declined. Housing starts, usually considered the key number, continued to climb.

  Permits for residential construction were issued at a seasonally adjusted annual rate of 1,545,000 units, virtually identical to the September pace after its revision down from 1,553,000. Permits have grown by 2.8 percent year-over-year.

  The September rate had been higher than anticipated, so builders may now be working off a backlog. Still, October's permits were only slightly less than forecast. Analysts polled by Econoday had looked for a range of 1,520,000 to 1,600,000 with a consensus of 1,560,000.

• How Homeowners' Credit Profiles Impact Forbearance

  Freddie Mac has published research examining the characteristics of borrowers who took advantage of the availability of forbearance plans in the early part of the COVID-19 pandemic. Mortgage forbearance temporarily removes the obligation for borrowers to make their monthly mortgage payment. Forbearance plans are typically used by borrowers who experienced a sudden loss of employment, a reduction in income or damage from a natural disaster.

  Freddie Mac looked at internal loan-level servicing information on forbearance of its mortgages during three different periods, comparing COVID forbearance rates from March to June 2020 against a baseline period running from January 2019 to February 2020 and the 2017 storms and recovery from August to December 2017. For that later period only loans eligible for disaster related forbearance programs were included. The analysis is restricted to 30-year fixed-rate mortgages, which were current and not in forbearance the month prior to the start of the observation period.

• Non-QM Just Got Very Easy

  Non-QM just got very easy and it’s going to get even easier. Oaktree Funding has a slew of new stuff coming your way. Don’t miss the Non-QM 2021 Renaissance webinar on December 3rd. Click the banner below to register! Loan Officers, does this sound like you?

  The post Non-QM Just Got Very Easy appeared first on National Real Estate Post.

• Builder Confidence Continues to Shatter Previous Records

  For the third straight month the level of builder confidence in the new home market set a record high. The National Association of Home Builders (NAHB) said the Housing Market Index (HMI) it co-sponsors with Wells Fargo soared 5 points in November to 90. This is the highest level in the 35-year history of the HMI which set records of 83 in September and 85 in October. These are the only times in its history that the Index surpassed the 80-point level and is triple its level in April when the pandemic caused it to plunge. NAHB cautioned, however, that 69 percent of the survey responses were received before the results of the presidential election were called on Nov. 7. The election results and their future impacts on housing market conditions, will be more fully reflected in December's HMI report.

   

• Mortgage Application Volume Pulls Back Slightly, Purchases Still Strong

  Despite a healthy upward bump in purchase applications, overall mortgage volume declined last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, dipped 0.3 percent on a seasonally adjusted basis during the week ended November 13, and was down 2 percent unadjusted. The week's results were not adjusted to account for the Veterans' Day holiday that occurred midweek. The Refinance Index was down 2 percent from the previous week but was 98 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 69.8 percent of total applications from 70.0 percent the previous week.

   

• MBA Expects 2020 Refis to Nearly Double 2019's

  The Mortgage Bankers Association's (MBA's) November 2020 economic forecast ups the ante from its rosy October version. Its revisions are due to the strong pace of home sales and low interest rates which continue to fuel a refinancing boom. MBA has increased its prediction for total mortgage originations from the $3.175 trillion estimate in October to $3.39 trillion. This would be a 50 percent increase from the $2.25 trillion in total originations in 2019, and the highest total since 2003. Refinancing, of course, is the driver behind these numbers. By the end of the year MBA expects those originations to have increased by 91.5 percent year-over-year to $1.97 trillion, potentially the highest total since 2003. Purchasing volume has not been shoddy either. That total is expected to be the highest since 2005 at $1.42 trillion, representing annual growth of 16 percent.

   

• How COVID Changed Escrow Companies Forever

  COVID has changed a lot of things, many of them forever. Is Escrow one of them? Now with everything being done virtually, will the traditional escrow company survive? Has Escrow changed forever? Need premium pricing and 3 day turn times? Send your deals to REMN. Click the banner below.

  The post How COVID Changed Escrow Companies Forever appeared first on National Real Estate Post.

• National Lock Down? – Can the Industry Handle It?

  Today we interview NAMB President Kimber White about the Biden Administration and other topics including that we may be facing a National Lock Down. If we did, what effect would that have on the industry. Kimber White is an active mortgage broker and has been for over 30 years so his insights are always worth […]

  The post National Lock Down? – Can the Industry Handle It? appeared first on National Real Estate Post.

• Low Rates No Longer Offsetting Price Gains; Affordability Wanes

  The National Association of Realtors® (NAR) said on Thursday that home prices have continued to grow in each of the 181 areas it tracks for its quarterly metro home price report. Both record-low mortgage rates and depleted inventories of existing homes for sale contributed to the annual growth. "Favorable mortgage rates will continue to bring fresh buyers to the market," said Lawrence Yun, NAR chief economist. "However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast." Percentage price gains reached into the double digits in 65 percent or 117 of the areas. In comparison, only 15 metro areas recorded double-digit increases in 2020's second quarter. The biggest gainers in the third quarter were Bridgeport, Connecticut, (27.3 percent); Crestview, Florida. (27.1 percent); Pittsfield, Mass. (26.9 percent); Kingston, New York. (21.5 percent); Atlantic City, New Jersey (21.5 percent).

   

• Barry Habib – Half of All Mortgages Under 4%

  Today we interview Barry Habib about what happened this week and what to look forward to next week. One interesting factoid on today’s show is the fact that half of all mortgages are under 4%. Where does that leave our pipelines if rates bump into the mid 3’s? Tune in to find out!

  The post Barry Habib – Half of All Mortgages Under 4% appeared first on National Real Estate Post.

• Realtor Coments on How Pandemic Changed Homebuying

  There was apparently a certain profile of home buyers before the pandemic struck and a different one after it began. The National Association of Realtors'® (NAR's) 2020 Profile of Home Buyers and Sellers, an annual report on demographics, preferences and experiences of buyers and sellers across America shows COVID-19 caused several shifts in America's housing market over the past eight months. Changes in the behaviors of home buyers and sellers were especially notable as buyers' usual tendencies altered, and the urgency to sell accelerated. "The coronavirus without a doubt led home buyers to reassess their housing situations and even reconsider home sizes and destinations," said Jessica Lautz, vice president of demographics and behavioral insights at NAR. "Buyers sought housing with more rooms, more square footage and more yard space, as they may have desired a home office or home gym," she added. "They also shopped for larger homes because extra space would allow households to better accommodate older adult relatives or young adults that are now living within the residence."

   

• Fannie/Freddie Adopt Not-so-New Credit Score Model

  Tried and true has won out over shiny and new, at least when it comes to GSE credit scoring. And at least for the moment. The Federal Housing Finance Agency (FHFA) announced on Tuesday that it has validated and reapproved the Classic FICO credit score model for use by Fannie Mae and Freddie Mac for assessing the creditworthiness of mortgage borrowers. The Agency said this would allow the GSEs "to continue supporting the mortgage market while assessing more modern credit score models that were submitted in response to the 2020 Joint Enterprise Credit Score Solicitation."

   

• Purchase Applications Drop Back to Mid-Spring Levels

  Mortgage applications, especially for home purchases, pulled back from the previous week's level. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, decreased 0.5 percent on a seasonally adjusted basis during the week ended November 6. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. Refinancing remained the strength of the Composite Index and that component gained 1 percent week-over-week and was 67 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 70.0 percent of total applications from 68.7 percent the previous week.

   

• Forbearance Plans Hit Pandemic Low

  The number of COVID-19 related forbearances plans headed downhill at an increasing pace over the last few week although there is no guarantee the improvement will continue. Black Knight says there was another 4 percent decline, representing 121,000 loans, over the past week. This brings the improvement in the number of plans since just the first of November to 416,000 loans or 9 percent. As of November 10, there were 2.735 million loans remaining in plans. This represents 5.2 percent of the 53 million active mortgage loans in servicer portfolios and an aggregate unpaid principal balance of $559 billion. Of the loans still in active forbearance, 81 percent have had their terms extended at some point since March.

   

• Mortgage Demand at 6 Month Low

  Mortgage demand is at a 6 month low, but does it matter? Not only that but there’s a few other things Brian Stevens brings up on today’s show. So tune in and enjoy. Don’t forget… if you were ever interested in entering into the reverse mortgage space, Liberty Reverse Mortgage is here to help you […]

  The post Mortgage Demand at 6 Month Low appeared first on National Real Estate Post.

• Forbearance? Foreclosure? More Inventory?

  Are the current forbearance’s that are seriously delinquent going to turn into foreclosures? If they do, will you be able to capitalize on the situation? Should you? That’s what we discuss on today’s show. For ALL of your Non-QM needs reach out to Oaktree Funding. Click the banner below!

  The post Forbearance? Foreclosure? More Inventory? appeared first on National Real Estate Post.

• More People are Concerned About Job/Financial Security Says Latest Housing Survey

  After its third straight month of gains, Fannie Mae's Home Purchase Sentiment Index (HPSI) is now at 81.7, up 0.7 point from September. The October increase was the fifth in the six months since the Index, based on some components of the National Housing Survey, bottomed out at a pandemic generated nine year low of 63.0. The index is still down 7.1 points from its October 2019 level. Three of the HPSI components increased in October.  Questions on whether it is a good time to buy a home or to sell one both generated increased positive responses than in September. The percentage of respondents who say it is a good time to buy increased from 54 percent to 60 percent, while the percentage who say it is a bad time to buy decreased from 38 percent to 35 percent. As a result, the net share of Americans who say it is a good time to buy increased 9 percentage points month over month and is 4 points higher than a year ago.

   

• Serious Delinquencies Set Records as Early Rates Trend Down

  Extremely serious delinquencies, those loans 150 days or more past due, reached historically high levels in August. Five months into the COVID-19 crisis, Corelogic said the rate of delinquencies among those loans spiked to 1.2 percent, the highest level since at least January 1999, which we assume is the limit of the company's records. CoreLogic said this surge was likely due to large volumes of delinquencies moving in tandem through the pipeline. Dr. Frank Nothaft, chief economist at CoreLogic said, "This was the highest rate in more than 21 years and double the January 2010 peak during the home-price bust. The spike in delinquency was all the more stunning given the generational low of 0.08 percent in March and April." Loans meeting the more traditional measure of serious delinquency, 90 or more days past due including loans in foreclosure, now include 4.3 percent of active mortgages, up from 1.3 percent in August 2019. This is the highest serious delinquency rate since February 2014.

   

• Mortgage Lenders and Brokers Need to Brace for the New CFPB

  There’s about to be a new sheriff in town at the CFPB. The first order of business for the new administration is to fix COVID and the second is to fix the CFPB. That means tougher regulations and harsher enforcement. It’s time to brace for what might happen. This isn’t some sort of media hoax […]

  The post Mortgage Lenders and Brokers Need to Brace for the New CFPB appeared first on National Real Estate Post.

• Volatile Week for Rates. Be Careful with Your Pipelines.

  It’s a volatile week this week for rates. There are several factors that could send rates higher this week. Please keep your eye on the market! If you don’t have MBS Highway yet, click the banner below to get it and use it. Also, you’ll want to take Barry’s CMA class as well. That link […]

  The post Volatile Week for Rates. Be Careful with Your Pipelines. appeared first on National Real Estate Post.

• Should Mortgage Brokers Worry Under Biden Administration?

  Today we interview NAMB President Kimber White about what to expect under Trump or Biden, whoever wins. Equally as important, what will mortgage brokers experience under a Biden administration if he wins. This was recorded at 10AM PT November 5, 2020, so the results may already be in by the time you watch this.

  The post Should Mortgage Brokers Worry Under Biden Administration? appeared first on National Real Estate Post.

• Forbearances at Their Lowest Level Since April, But There's a Catch

  Another round of expirations reduced the number of active forbearance plans last week. Black Knight said the number of homeowners in COVID-19 related plans fell by 137,000 during the week, after a slight uptick the week before.  The 5.0 percent improvement was about what was expected for the first week of the month. At the beginning of October over 700,000 forbearance plans had been scheduled to reach the end of their original terms over the ensuing two months. By the end of October 161,000 had expired and 366,000 remained in their original terms. Thus, it appears that 200,000 plans had been worked through and extended during the last week of the month.

   

• Unlimited Cash Out Jumbo with HOT Pricing?

  Today we interview Kristopher Martin with Oaktree Funding. We’ll start seeing Non-QM looking a little more like it did pre-COVID, and, they’ve got a very hot Jumbo product you should be able to use right now as well. Click the Oaktree Funding banner below to connect and get started!

  The post Unlimited Cash Out Jumbo with HOT Pricing? appeared first on National Real Estate Post.

• Eat Pizza and Get Business? Yep.

  Today we interview Hakim Singelton with Success Mortgage Partners. He has a great Pizza Party Zoom strategy that worked great. He shares with us how he did it and what the results were/are. If you’re a real estate agent in the Philadelphia area and you’d like to connect with Hakim, his contact info is below. […]

  The post Eat Pizza and Get Business? Yep. appeared first on National Real Estate Post.

• Refis Help to Boost Mortgage Application Volume

  An increase in refinancing carried overall applications onto the plus side of the ledger during the week ended October 30. The Mortgage Bankers Association (MBA) said its Mortgage Applications Survey found a slight decline in purchase applications but a significant gain in refinancing compared to the previous week. This resulted in an increase of MBA's Market Composite Index, a measure of mortgage loan application volume, of 3.8 percent on a seasonally adjusted basis from one week earlier and 3.0 percent on an unadjusted basis. The Refinance Index rose 6 percent from the previous week and was 88 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 68.7 percent of total applications from 66.7 percent during the week ended October 23. 

   

• Vendor, Warehouse, Broker Products; Company-Sponsored Training; Climate Change Impacting Servicing Values?

  We don’t know much so far about the election results besides the pollsters being, once again, wrong on a national scale, and (so far) yesterday being mostly gratifying for Republicans. I have one question: After this quarantine… Will the producers of My 600-Lb. Life just find me, or do I find them? My weight isn’t the only thing changing. According to the Emerging Trends in Real Estate 2021 report, COVID-19 has made lower-density areas for both residential and commercial real estate more appealing and is accelerating suburban growth, especially in Sun Belt markets. Growth in the suburbs has been a consistent trend in the report for the past five years, but new work-from-home policies and increased family formation among millennials are furthering this shift. Home buyers will look for suburban locales with low taxes, affordable housing, job opportunities, and auto-oriented transportation. The report also predicts cost-conscious companies will gravitate toward cities that also are affordable and business-friendly with growing workforces. And ask yourselves, “Will the youth of 15 years from this year be named, “the Coronnials’?”

   

• Is Redfin Redlining? What about the GSE’s?

  So Refin is being sued for “redlining” based on the fact that they have home value limits on the homes that they will list for sale. With that in mind, what about the GSE’s? Based on their price adjustments, they are inherently redlining and forcing all lenders to do the same, no?

  The post Is Redfin Redlining? What about the GSE’s? appeared first on National Real Estate Post.

• Residential Construction Was a Bright Spot for September

  Overall construction spending was flat in September, held down by a drop in public sector projects. The U.S. Census Bureau said total expenditures during the month were at a seasonally adjusted annual rate of $1.414 trillion, a 0.3 percent increase from August and up 1.5 percent on an annual basis. On a non-adjusted basis spending was down slightly, from $130.462 billion in August to $129.103 billion. For the year-to-date (YTD), spending totals $1.059 trillion, growth of 4.1 percent compared to the first nine months of 2019. The greatest year-over-year gain in spending has been for public safety projects. This spending is up 46.2 percent thus far in 2020, with water supply projects following with a 20.8 percent decline. The largest YTD decline (-14.0 percent) is for construction related to religion.

   

• 2020 Home Loan Volume Expected to Top a Record-Breaking $4 Trillion

  Black Knight concurs with an earlier forecast from the Mortgage Bankers Association, that 2020 will have a higher level of mortgage originations in 2020 than was registered in 2019. Black Knight, in its new Mortgage Monitor covering September loan performance data, said its interpretation of recent rate lock information suggests that, for the first time ever, the market is on track to top $4 trillion in originations. Rate lock activity in September was relatively even with that in August increasing a nominal 1 percent. Purchase locks were down 2 percent, typical for the season, while refinance locks were essentially unchanged. However, lock activity picked up in October, rising 4 percent through the first half of the month. Purchase locks were up 6 percent and refinancing locks rose 3 percent month-over-month.

   

   

• Fastest Home Price Gains Since 2004, Inventories Dwindling

  CoreLogic's estimate of the annual home price appreciation in September is not nearly as high as that published yesterday (over 14 percent) by Black Knight on Monday, but at 6.7 percent, the CoreLogic number is the fastest annual acceleration in their records since May 2014. The company puts the increase in its Home Price Index (HPI) at from August to September at 1.1 percent. Home purchase activity remained strong in the late summer, reversing the usual seasonal slowdown. Record-low mortgages rates continue to bring out the buyers, including first timers and those looking to trade-up or buy a second home. At the same time both the National Association of Realtors® (NAR) and the U.S. Census Bureau say the national supply of homes for sale fell to the lowest recorded level in September. It was at 40 percent of that seen in September 2008 and was 75 percent the September 2000 level. This severe inventory shortage has intensified upward pressure on home price appreciation as consumers compete for the limited number of homes on the market.

   

• Think Tank Concludes Mortgage Guidelines Could Safely be Twice as Risky

  The Urban Institute's (UI's) Housing Finance Policy Center has updated its credit availability index (HCAI) to reflect data for the second quarter of 2020. The Index shows a slight dip from an adjusted 5.3 percent in the first quarter to 5.2 percent in the second quarter. Tightening in the GSE and government channels has driven a retraction of credit availability through the first half of 2020, as the risk in the portfolio and private-label securitization market remains a shadow of what it once was. The HCAI measures the percentage of owner-occupied home purchase loans that are likely to default-that is, go unpaid for more than 90 days past their due date. When the HCAI declines it indicates the lenders have a greater unwillingness to tolerate defaults and they are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates a higher tolerance for defaults and that lenders are taking more risks, making it easier to get a loan.

   

• Fannie/Freddie Report Increased Profits

  Both GSEs reported financial results for the third quarter of 2020 that were significantly higher than both their Q2 2020 and their 2019 numbers. Fannie Mae's net  and its comprehensive incomes were $4.2 billion and Freddie Mac's net and comprehensive incomes came in at $2.5 billion and $2.4 billion, respectively. Fannie Mae's comprehensive income in the second quarter was $2.5 billion and it was 4.0 billion a year earlier. The company says the higher 3^rd quarter results were due to higher amortization income from higher mortgage prepayment activity as borrowers refinanced into historically low rates. The company's net interest income was $6.7 million, up 879 million from the previous quarter. Year-to-date (YTD) the net interest income is up $2.4 billion from the first nine months of 2019 to $17.8 billion.  Fee and other income increased by $3 million from the prior quarter to $93 million, but it is $132 million lower on a YTD basis. Net investment gains for the quarter were $653.

   

• What Happens if Administration Changes?

  What happens if the current administration changes? What kicks into gear? More importantly, what happens in on the Hill in an administration change that will impact the mortgage and real estate industry? Today we talk to NAMB President Kimber White about how NAMB prepares during an election. To join NAMB click the banner below:

  The post What Happens if Administration Changes? appeared first on National Real Estate Post.

• Residential Fixed Investment Soared Past GDP Growth in Q3

  Hidden in the Q3 report on Gross Domestic Product (GDP) on Thursday, which showed a rebound of 33.1 percent from the 31.4 percent loss in Q2 was news of some real growth. Robert Dietz, chief economist of the National Association of Home Builders points out, in an article in NAHB's Eye on Housing blog, that residential fixed investment (RFI), which includes home building and remodeling, expanded at a 59.3 percent annual rate. Dietz says low interest rates, a renewed focus on the importance of home, an evolving geography of housing demand, and a lack of inventory has spurred a "dramatic turnaround" in the housing sector since spring. This, he adds, has been a relative bright spot for the economy. Housing's share of the GDP remains elevated. In the second quarter, amid the broader economic weakness, housing accounted for more than 16 percent of the overall number. As the rest of the economy recovered in the third quarter that share declined to 15.5 percent. Nonetheless, Dietz says, "Except for the historic second quarter, this is the highest share for housing since the summer of 2008."

   

• Forbearance Plans Increase, Many are Reinstatements

  The number of loans in COVID-19 related forbearance plans rose during the past week, driven by both an increase in new plans and significantly fewer borrowers exiting from the program. Black Knight said its weekly survey found a net increase of 31,000 mortgage loans in forbearance plans, a 1.0 percent increase. There were 33,000 plan starts. The number of starts through October 27 is 15 percent higher than in September. Many of those starts were borrowers reactivating previously expired plans and Black Knight said many of those were probably among the large number of plans extinguished earlier in the month. Brand new plans are down 7.0 percent month-over-month while reactivations are up 50 percent.

   

• Did the CFPB Overstep on This Lawsuit?

  Did the CFPB overstep on a lawsuit against an Illinois mortgage lender based on comments that made on a local radio show? Did an appraiser discriminate against a bi-racial couple looking to get a refinance? Tune in today and see what you think. Time for a change in the Mortgage Space? We might be able […]

  The post Did the CFPB Overstep on This Lawsuit? appeared first on National Real Estate Post.

• Mortgage Apps Rise Slightly, Purchase Loans End Four-Week Drought

  Mortgage application volume rose slightly during the week ended October 23. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, increased 1.7 percent on a seasonally adjusted basis from one week earlier, its first increase in three weeks. On an unadjusted basis, the Index was 2.0 percent higher. The Refinance Index gained 3 percent from the previous week's level and was 80 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 66.7 percent of total applications from 66.1 percent the previous week. The Purchase Index was up 0.2 percent on a seasonally adjusted basis. Even if fractional, it was the first uptick in that index since the week ended September 18. The Index dipped 0.3 percent unadjusted but was 24 percent higher than the same week in 2019.  

• Lower Rates Bringing In More Buyers (And Higher Prices)

  The percentage of potential home buyers who perceive housing in their market as affordable increased in the third quarter, at least as reported in a recent National Association of Home Builders (NAHB) survey. NAHB's Housing Trends Report says that 27 percent of buyers responding to the survey reported they could afford at least half of the homes available for sale in their markets. This is up from 20 percent in the third quarter of last year. Rose Quint writes in NAHB's Eye on Housing blog that the increased responses indicate that lower mortgage rates have had a stronger impact on some buyers' perceptions of affordability than has rising home prices. "Nonetheless, it is important to keep in mind that most home buyers (72 percent) still say they can afford only a minority of the homes available in their markets," she says.

   

• Pending Home Sales Fall Back to The 2nd Highest Level on Record

  Pending home sales faltered a bit in September, like new home sales announced earlier this week, the decline ended a four-month winning streak. The National Association of Realtors® (NAR) said that its Pending Home Sales Index (PHSI) fell to 130.0, a 2.2 percent retreat from the August level. The index, based on signed contracts to purchase existing single-family homes, townhouses, condominiums, and cooperative apartment, fell in every region but the Northeast. However, it is still 20.5 percent higher than in September 2019 and retained double digit annual growth in all regional indices. Analysts had expected the positive run to continue. Those polled by Econoday were not universally upbeat, their forecasts were, in fact, wild. They ranged from a 4.0 percent downturn to a 9.5 percent increase. The Econoday consensus was for growth of 3.5 percent, while the consensus from Trading Economics was 3.4 percent.

   

• Small Landlords Face Tough New Law

  In Portland Oregon, there’s a new law forcing landlords to pay relocation fees to their tenants if they can’t pay a rent increase. Yeah, that’s a tough pill to swallow if you haven’t received any rent over the past several months on top of it all. Will this flow to other States? You never know, […]

  The post Small Landlords Face Tough New Law appeared first on National Real Estate Post.

• Freddie's Loan Volume is Up, Delinquency Rate Begins to Retreat

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 17.5 percent in September compared to a 27.7 percent gain in August. The portfolio balance at the end of the period was $2.570 trillion compared to $2.533 trillion the prior month and $2.295 trillion a year earlier. The growth rate for the year to date is 13.7 percent. Purchases and Issuances totaled $114.386 billion and Sales were ($3.064) billion. The August numbers were $131.140 billion and ($898) billion, respectively. Single-family refinance loan purchase and guarantee volume was $70.9 billion in September compared to $87.200  billion in August, representing a 69 percent share of total single-family mortgage portfolio purchases and issuances compared to 70 percent the previous month.

   

• Spring Buying Season Shifts, Home Prices Rocket Higher

  The impact of low interest rates and pent up buyer demand played out in sharply increasing home prices in August. Both the Federal Housing Finance Agency (FHFA) and S&P CoreLogic Case-Shiller indices posted significant appreciation on an annual basis and acceleration in that appreciation compared to prior months. CoreLogic Deputy Chief Economist Selma Hepp commented, "The forgone spring home-buying season appears to have fully shifted into summer months, leading to sales volumes that are picking up speed at a time when they would normally show signs of slowing. Additional demand was amplified by buyers looking for larger homes and second homes in resort and beach areas. Current home price growth is exceptionally strong given that the U.S. is an economic recession, but it is the historically low inventories and record-low mortgage rates that are outweighing economic and employment headwinds and fueling the price acceleration."

   

• Homeownership is Growing, Especially Among Younger Age Groups

  The U.S. homeownership rate in the third quarter fell back slightly from the prior quarter. The second quarter saw the highest level for homeownership since the second quarter of 2008. Homeownership in the third quarter, according to the U.S. Census Bureau, was 67.4 percent, 0.5-point decrease from the previous period, but up from 64.8 percent in the third quarter of 2019. That rate ties with the second quarter of 2009 as the second highest rate since the onset of the housing crisis. The rate was highest in the Midwest and South at 71.2 percent and 70.8 percent and substantially lower in the Northeast (62.0 percent) and West (62.1 percent). All four regions posted annual increases. The rate increased for all age groups. Those under the age of 35 jumped from 37.5 percent in the third quarter of last year to 40.2 percent and the rate for those 35 to 44 years old rose more than three points to 63.9 percent. The rate for those 45 to 54 was 72.0 percent, 55 to 64, 76.4 percent and those over 65 had a rate of 80.7 percent.

   

• Barry Habib – Money in the Streets

  The book is here. Barry Habib – Money in the Streets! This is a must for you. Click the book image below where you can buy it at Amazon. You can also click the CMA logo below to get Barry’s Certified Mortgage Advisor Course. AND – Go help some self-employed people out there. Oaktree Funding […]

  The post Barry Habib – Money in the Streets appeared first on National Real Estate Post.

• Some Delinquency Rates are Declining to Pre-COVID Levels

  The number of serious delinquencies dropped in September according to Black Knight. The 43,000 decline in the number of loans that were 90 or more days past due marked the first improvement in that statistic since the start of the pandemic. The change leaves 2.32 million homeowners seriously overdue on their mortgages but not in foreclosure, 1.88 million more than in September 2019. Black Knight's "first look" at September's loan performance data showed an overall decline in most stages of delinquency more than six months after Congress enacted loss mitigation measures to deal with the economic disruption caused by the COVID-19 virus. Total delinquencies declined 3.10 percent from August although again they were 89.03 percent higher on an annual basis. There were 3.54 million mortgages that were 30 or more days past due but not in foreclosure, down 137,000 from August. The national delinquency rate was 6.66 percent compared to 6.88 percent the previous month.

   

• New Home Sales Finally Level Off at 14 Year High

  New home sales declined in September for the first time since April. The U.S. Census Bureau and the Department of Housing and Urban Development said sales of newly constructed homes were sold at a seasonally adjusted annual rate of 959,000 units, a 3.4 percent decline from the prior month. Further, the 1,011,000 sales reported in August were revised down to 994,000. Nonetheless, sales are still up 32.1 percent from one year ago. Sales were below all the predictions from the Econoday panel of analysts. Those ranged from 1.0 million to 1.05 million.  Their consensus was 1.016 million units. Econoday said its consensus forecast had fallen short of actual sales in each of the previous five months.

   

• The Real Way to Work Facebook

  Don’t waste your money on blanket ads. Use very direct marketing by uploading your database to Facebook. It’s the real way to use Facebook that all the big guys use. They do it this way because it’s the most cost efficient and effect advertising you can possibly do on the platform. Click the banner below […]

  The post The Real Way to Work Facebook appeared first on National Real Estate Post.

• CFPB Extends QM Patch Indefinitely

  Today we have NAMB President Kimber White on the show talking about the CFPB extending the QM patch and what he has in store for NAMB going forward into 2021. There a bunch of stuff that awesome including NAMB University. Click the NAMB banner below for more information about everything we spoke of on today’s […]

  The post CFPB Extends QM Patch Indefinitely appeared first on National Real Estate Post.

• Higher FICO Scores Indicate Lenders are Being More Selective

  The refinancing share of originations increased again in September, rising 2 points to 58 percent of all loans. Ellie Mae's Origination Insight Report for September shows the increase came almost inclusively in conventional loans where the refi share jumped 5 points to 66 percent. The refinancing share of VA loans rose 1 point to 20 percent while the FHA share was unchanged at 15 percent. The reciprocal share, 42 percent, of purchase mortgages is a significant drop from 50 percent in January, but Ellie Mae notes it is well above the May low of 35 percent of all closed loans. The increase in refinancing was undoubtably in response to a further decline in the 30-year note rate. The average for all loans was 3.00 percent, down from 3.09 percent in August. Ellie Mae said this rate was the lowest since it began tracking the data in 2011. The average for conventional loans was 3.02 percent; 3.01 percent for FHA loans and 2.78 percent for VA loans.

   

• Vacation Homes Help Fuel Existing Sales Surge

  Existing home sales rose again in September and are now blowing the doors off last year's numbers. The National Association of Realtors® says sales of single-family homes, townhomes, condominiums, and co-ops, rose 9.4 percent from August to a seasonally adjusted annual rate of 6.54 million units in September. After four straight months of increasing sales, the seasonally adjusted rate is now 20.9 percent higher than in September 2019. Single-family home sales rose 9.7 percent month-over-month to a seasonally adjusted rate of 5.87 units and are now 21.8 percent higher than a year earlier. Existing condominiums and co-ops sold at annual rate of 670,000 units, increasing 6.3 percent and 13.6 percent from the two earlier periods. Analysts had expected sales to remain on a winning streak but were looking for an annual rate of 6.2 million sales. Forecasts of those polled by Econoday ranged from 5.8 million to 6.4 million units, all falling short of the actual number.

   

• Loans in Forbearance Drop Below 3 Million

  The number of FHA and VA loans in forbearance rose slightly last week, however, the overall numbers of forborne loans fell nationally by 11,000. Black Knight's weekly survey of the COVID-19 mortgage forbearance measures found that, as of October 20, there were 2.98 million borrowers in active plans, 5.6 percent of the nation's 53 million active loans. About 5,000 loans were added to the number of loans in portfolios serviced for FHA and VA investors, bringing the total to 1.155 million loans or 9.5 percent of the total. Loans serviced for investors in GSE securities (Fannie Mae and Freddie Mac) declined by 14,000 to 1.09 million or 3.9 percent of those 28 million active mortgages. There was a 2,000-loan decrease in portfolio-held and private label securitized (PLS) loans to 729,000, 5.6 percent of the total. The total unpaid principal balance of these loans is $616 billion.

   

• Homeowner Profits Soared in Q3

  The contribution made to household wealth by homeownership is underlined in ATTOM Data Solutions' third-quarter U.S. Home Sales Report. The company said that a typical homeowner who sold a home during the quarter had a gain of $85,000. This was $10,000 more than that realized by sellers in the previous quarter and up from $66,000 in the third quarter of 2019. This typical home-sale profit represented a 38.6 percent return on investment (ROI) compared to the original purchase price. The typical ROI in the previous quarter was 37.5 percent and it was 33.7 percent a year ago. The report says that both the raw-profit and return-on-investment figures were the highest since the U.S. economy began recovering from the Great Recession in 2012. They represent a continued increase even as the Coronavirus pandemic has damaged the economy and led to spikes in unemployment throughout the country this year.

   

• FHA Streamlines with Catalyst System

  Google is getting sued for being a monopoly, and FHA has launched their Catalyst system that will help lenders streamline the FHA loan process. To learn more about it you can CLICK HERE. 3 Day Turn Times! Conventional, Government, Purchase or Refinance. Oh, and with premium pricing as well! Click the banner to talk to […]

  The post FHA Streamlines with Catalyst System appeared first on National Real Estate Post.

• Fannie Asks Mortgage Execs How to Improve Condo Lending

  The most recent Fannie Mae's Lender Sentiment Survey focuses on the complexities of lending to the condominium market. The company stresses that this type of housing can play an important role in narrowing the supply gap for affordable housing options as well as providing an attractive alternative for homeowners seeking to downsize. However, since the great recession, there has been a significant shortage of both new and existing units for sale. Condos represent 8 to10 percent of the mortgage market but tend to exist primarily and thus play a larger role in many urban areas. They also present unique risks given the financial responsibility owners share for the operation and maintenance of the common areas and shared amenities. Lenders may also face increased time and costs due to the complexity of underwriting condo project eligibility.

• Bank, construction, Ops Jobs: 203(k), Credit, Doc Tools; IPOs, Debt Offerings, Lenders and Investors Making Moves

  40 million people have already cast their vote in the election is unprecedented. I can hardly wait to return to “precedented times,” “unprecedented” favored to win “Word of the Year” in 2020. Even the colors are unprecedented. When I was a kid, people would paint their room or house white. Maybe green, or a bold shade of beige. That’s all gone out the proverbial window as current house & room colors include Muslin, Foggy Morning, Rosy Peach, Beacon Hill Damask, Potters Clay, or Amazon Soil. And the “Color of the Year” award goes to… Aegean Teal! (Go ahead and takes those gallons of Adriatic Teal to the dump, they’re passe.) It is more fun to talk about creative colors than the unprecedented debt being issued by countries around the world, which economists tell us leads to higher rates, which in turn leads to fewer rate & term refis. But hey, with all this house price appreciation, is some cash out refi action in our vision for 2021, especially in the Agency sector? Meanwhile nearly every lender is working hard, focusing on helping clients. Ordinarily there would be a certain amount of planning around Halloween, of course. Someone in capital markets will have to wait until 2021 to take the prize with their “hedgehog” costume.

   

• MBA Economists Forecast Record Purchase Volume Next Year

  Purchase mortgage originations are expected to hit a new record high of $1.54 trillion next year. That forecast, which would be an increase of 8.5 percent over the projected total in 2020, was made at the Mortgage Bankers Association's (MBA's) virtual 2020 Annual Convention and Expo by Mike Fratantoni, Chief Economist and Senior Vice President for Research and Industry Technology; Joel Kan, Associate Vice President of Economic and Industry Forecasting; and Marina Walsh, CMB, Vice President of Industry Analysis.  While purchase mortgages will gain ground, the three say that, after a nearly 80 percent jump in refinance activity this year, those originations are predicted to slow next year, decreasing by 46.3 percent to $946 billion. MBA expects that, with record-low mortgage rates driving borrower demand, mortgage originations will total $3.18 trillion in 2020 - the most since a total of $3.81 trillion in 2003. In 2021, mortgage originations are expected to fall to around $2.49 trillion, which would still be the second-highest total in the past 15 years. At $1.54 trillion, next year's purchase originations would eclipse the previous all-time high of $1.51 trillion in 2005. 

   

• Looking for Listings? This may Help.

  If you’re looking for listings, this may help. Serious delinquencies are up right now. Many of these people may need to sell as COVID may have wiped out their jobs. Right now it would be smart to pick up the phone and call some of these folks to see if you can help. To get […]

  The post Looking for Listings? This may Help. appeared first on National Real Estate Post.

• Looks Like Residential Construction is Back on Track

  Residential construction resumed its upward trend after a brief pause in August. The U.S. Census Bureau and Department of Housing and Urban Development reported that all three measures of construction, permitting, housing starts, and unit completions, increased in September. Permits for privately owned residential construction were issued at a seasonally adjusted annual rate of 1,553,000, up by 5.2 percent from the 1,476,000-unit annual rate (revised from 1,416,000) in August. The increase from the previous September's rate of 1,437,000 units was 8.1 percent. Analysts had expected permits to recover from their slight (0.9 percent) downturn in August but those polled by Econoday had a consensus of only 1,451,000 units. Even the high end of their 1,375,000 to 1,500,000 forecast range was well below the actual number. Single-family permits rose 7.8 percent to an annual rate of 1,119,000 units and was 24.3 percent higher than a year earlier. The August estimate was revised slightly higher, from 1,036,000 to 1,038,000. Permits for construction in buildings with five or more units rose 1.0 percent to 390,000, however this is 22.2 percent below the pace a year earlier.

   

• Calabria to Seek Input on Future Fannie/Freddie Policies

  Mark Calabria, director of the Federal Housing Finance Agency (FHFA) used the annual convention and expo of the Mortgage Bankers Association to announce changes in the agency's requirements for certain operations of the government sponsored enterprises (GSEs) Fannie  Mae and Freddie Mac. FHFA is seeking comments on a proposed rule requiring the GSEs to provide advance notice to FHFA of new activities and to obtain prior approval before they launch any new products. The rule establishes revised criteria for determining if such notice is required and determining if an activity is a new product that merits public notice and comment.

   

• Mortgage Apps Steady; Forbearances Drop Under 6%

  The Mortgage Bankers Association (MBA) says there was little change in mortgage application activity during the week ended October 16. MBA's Market Composite Index, a measure of mortgage loan application volume, dipped 0.6 percent from the prior week on a seasonally adjusted basis and was down 1.0 percent unadjusted. Refinancing was also flat. The Refinance Index increased 0.2 percent from the previous week although activity remained well ahead of a year earlier, up 74 percent. The refinance share of mortgage activity increased to 66.1 percent of total applications from 65.6 percent the previous week.

   

• Mortgage IPO’s are all the Rage Today.

  Seems like mortgage IPO’s are all the rage today no? What’s going on with that? Who knows, but there’s probably not a better time to go for an IPO than today that’s for sure! Platinum pricing, platinum products, platinum service and platinum turn times. REMN! Click the banner below to talk to an account executive!

  The post Mortgage IPO’s are all the Rage Today. appeared first on National Real Estate Post.

• Home Purchase Demand Still Strong, but Slowing Down

  While applications for new home purchase mortgages jumped in September, the Mortgage Bankers Association (MBA) expects only modest changes in the September sales data. MBA's Builder Application Survey (BAS) data shows mortgage applications for new home purchases increased 38.2 percent in September compared to a year earlier but were down 5 percent from August 2020. The latter change does not include any adjustment for typical seasonal patterns. MBA estimates new single-family homes were selling at a seasonally adjusted annual rate of 869,000 units in September 2020. This estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. The estimate is a decrease of 0.2 percent from the August sales rate of 871,000 units. On an unadjusted basis, MBA estimates that there were 67,000 new home sales during the month, down 1.5 percent from 68,000 sales in August.   

   

• Fed Buying Too Much MBS?

  We’ll have to get Barry on the show to go over this in more detail for sure! But there are concerns that the Fed is buying too much MBS. In today’s show we talk about what those concerns are. So tune in and let us know what your thoughts are on the whole matter. Hey […]

  The post Fed Buying Too Much MBS? appeared first on National Real Estate Post.

• Second Homes, Widespread but Few in Number

  There were approximately 7.5 million second homes in the U.S. in 2018, the most recent year for which data is available. This is 5.5 percent of the nation's total housing stock. Na Zhao, writing in the National Association of Home Builders (NAHB's) Eye on Housing blog, says the largest share of these homes are in Florida with a total of 1.1 million homes, 14.5 percent of the country's total. The fewest homes, only 20,000, were in South Dakota NAHB defines a second home as one that qualify for the home mortgage interest deduction using the Census Bureau's 2018 American Community Survey (ACS). This does not include houses held primarily for investment or business purposes nor does it include homes under construction.

   

• Builder Confidence Sets a New Record Once Again

  For only the second time in its 35-year history, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) topped 80 this month. The first time was in September. The index, a measure of builder confidence in the market for newly built single-family homes increased two points to 85, breaking the previous high of 83 set last month.  "Traffic remains high and record-low interest rates are keeping demand strong as the concept of 'home' has taken on renewed importance for work, study and other purposes in the Covid era," said NAHB Chairman Chuck Fowke. "However, it is becoming increasingly challenging to build affordable homes as shortages of lots, labor, lumber and other key building materials are lengthening construction times."

   

• 92% Chance of Drastic Mortgage Industry Change?

  If the polls are right, we’re looking at a 92% chance of a drastic change in the mortgage industry in the next 30 days. Good changes? Bad changes? Tune in to today’s show to find out. And of course, let us know what your thoughts are in the comments below. Time for a Change in […]

  The post 92% Chance of Drastic Mortgage Industry Change? appeared first on National Real Estate Post.

• Troubling Unemployment Numbers Eclipsed by a Strong Housing Market

  Although the housing market continues to show strength, Freddie Mac economists say there are increasingly troubling signs in the larger economy. The third quarter forecast from the company's Economic and Housing Research Group notes an apparent stall in economic activity in early July. Even as many businesses reopened, unemployment claims continued at elevated levels, (and posted its largest one-week increase in three months last week). In mid-September claims totaled about 26 million.  Although the unemployment rate declined to 7.9 percent in September, Freddie Mac says a shift from temporary to permanent unemployment and a deterioration in labor force participation signals an underlaying labor market weakness. But then there is the housing market. One of the main drivers of the quick recovery from the March/April downturn is the historically low interest rates which hit an all-time low of 2.86 percent in mid-September (and was at 2.81 percent today.) The economists forecast they will remain flat at around 3.0 percent until the end of 2021. Total mortgage origination volumes increased as many homeowners took advantage of historically low mortgage rates. The main driver was a surge in refinance originations.

   

• Pandemic Throwing Millions into Rent, Mortgage, and Student Loan Peril

  The pandemic is endangering the credit histories of at least 30 million Americans and possibly threatening the shelter status of many of them. The Mortgage Bankers Associations' (MBA's) Research Institute for Housing America (RIHA) said on Friday that over 6 million households missed making rent or mortgage payments in September and 26 million individuals did not make payments on their student loans. The number of missed payments for rent and mortgage payments did decline slightly from the second quarter but 2.82 million households failed to pay their rent on time and in full in September while 3.37 million homeowners missed, delayed, or made a reduced mortgage payment. These numbers represent 8.5 percent of the renter population and 7.1 percent of homeowners. The share of student debt borrowers who missed a monthly payment has remained at 40 percent since May. "Rent and mortgage payment collections improved over the summer as more people went back to work, but high unemployment continues to place hardships on millions of U.S. households. There is growing concern that absent a slowdown in the number of coronavirus cases and another round of much needed federal aid, millions of households in the coming months face the prospect of falling further behind," said Gary V. Engelhardt, Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University. "With the current eviction moratorium expiring in January, the situation could be even more challenging for renters. Many renter households across the country could find themselves with no place to live and no means to repay missed payments."

• Forbearances Up Slightly After Last Week's Plunge

  Last week Black Knight reported that the beginning of October saw a decline in the number of active forbearance plans of 649,000 or 18 percent as many plans reached the end of their initial period. It was the largest single week decline since the crisis began. This week the number of loans in forbearance edged up a bit. The company reported an increase of 19,000 plans, bringing the total to just under 3 million. Despite the increase, the share of mortgages in forbearance held steady at 5.6 percent. Forbearances peaked at 4.76 million plans in late May. All investor classes saw slight upticks during the week. GSE forbearances rose by 3,000 to 1.11 million or 4.0 percent of the total portfolios and both FHA/VA and Portfolio and private label securities(PLS) forbearances increased by 8,000. This brought total FHA/VA loans in plans to 1.15 million, 9.5 percent of the total and portfolio/PLS forbearances to 731,000 or 5.6 percent. Seventy eight percent of forbearance plans have had their original terms extended.

• Loan Officer Assistance with Real Estate Agent Relationships

  Being an LO right now is tough. You have to juggle your refinance business while maintaining a good relationship with your real estate agent partners. If you find that being a difficult task to manage we can help. With Listing Booster Premium Services, we work with your real estate agents on your behalf multiple times […]

  The post Loan Officer Assistance with Real Estate Agent Relationships appeared first on National Real Estate Post.

• Banks Shutting Down Broker Accounts – NAMB CTA

  We reported on this before but needed to bring it up again. Banks are shutting down broker accounts. That’s “mortgage broker business accounts” and it needs to be stopped. This is entirely unfair. What could be the reasoning behind this? Please take the time to click the NAMB banner below to execute their call to […]

  The post Banks Shutting Down Broker Accounts – NAMB CTA appeared first on National Real Estate Post.

• California Law Seeks to Restrain Wall Street's Potential Landlords

  California is taking steps to avoid a repeat of the conversion of thousands of single-family homes from ownership to rental properties as occurred during the Great Recession. In late September, the state's governor Gavin Newson signed a bill that will give tenants, affordable housing groups and local governments the first crack at buying foreclosed homes. As homes were foreclosed by the millions following the housing crisis, Wall Street stepped in and investors, according to Zillow, gobbled up over 5 million homes, turning them into rental properties. They were bought as individual homes, via bulk sales of lender real estate owned (REO), or as distressed loans upon which the investors later foreclosed. It was expected that these houses would return to owner-occupied status once home prices recovered and the investors, largely big hedge funds, could realize a profit. Instead they have found ways to manage the geographically dispersed properties and continue to hold hundreds of thousands of them.

• Late-Stage Delinquencies Now Twice Great Recession Peak

  Mortgage delinquencies continued to rise in July according to CoreLogic's new loan performance report. The company found that 6.6 percent of all mortgages were at least 30 days past due (including those in foreclosure.) This represents a 2.8-percentage point increase in the overall delinquency rate compared to July 2019, when it was 3.8 percent. It was, however, a lower rate than the 7.1 percent reported for June, at that point a 3.1-point annual increase. The improvement was in early stage delinquencies, those loans 30 to 59 days past due. They declined from 1.8 percent in July of last year after spiking in April of this year to 4.2 percent. The rate of adverse delinquencies, loans 60 to 89 days past due, rose to 1 percent from 0.6 percent a year earlier, but were down from 2.8 percent in May. These improvements were offset by serious delinquencies, loans at least 90 days past due, including loans in foreclosure. That category surged from 1.3 percent in July 2019 to 4.1 percent. It is the highest serious delinquency rate since April 2014.

   

• Mortgage Rates Hit Record Lows but Applications Fell Flat

  The volume of mortgage applications dipped slightly last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, was down 0.7 percent on a seasonally adjusted basis during the week ended October 9 and was 1 percent lower on an unadjusted basis. The Refinance Index slipped 0.3 percent from the previous week and was 44 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 65.6 percent of total applications from 65.4 percent the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier and 1 percent unadjusted. The Index was 24 percent higher than the same week one year ago, continuing a string of year-over-year gains that started during the week ended May 22.

   

• Zillow Hiring Agents as Employee’s – Your Thoughts?

  We’ve touched on this before, but we’re curious about what you think. Doesn’t matter if you’re an LO or an Agent, what do you think about Zillow hiring real estate agents as employee’s for their iBuying platform? Time for a change in the mortgage space? We might be able to help. Click the banner below.

  The post Zillow Hiring Agents as Employee’s – Your Thoughts? appeared first on National Real Estate Post.

• Forbearance and Late Payments are Making Mortgages Harder to Get

  Mortgage credit tightened again in September, reaching a second successive six-year low. The Mortgage Bankers Association (MBA) said its Mortgage Credit Availability Index (MCAI) dropped another 1.9 percent to 118.6. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The new number is down 63.3 points from the level it reached in January before interest rates started an unprecedented decline and servicers were instructed to grant forbearances to existing borrowers. Three of the four components of the MCAI declined compared to August. The Conventional MCAI decreased 6.1 percent and its two components, the Jumbo MCAI and the Conforming index fell by 2.1 percent and 9.5 percent, respectively. The Government MCAI increased by 1.4 percent.

• Pandemic and Recession are Changing the Way People Rent and Buy

  Robert Dietz says you can count him as among those who believe the geography of housing demand is being changed by the pandemic and the resulting recession. He also thinks some of the changes will endure beyond the dual crises. Dietz, chief economist of the National Association of Homebuilders (NAHB) says the changes aren't solely the result of what has happened this year, but a continuing evolution of the market due to already existing factors. "Declining housing affordability in high-density markets were due to limited resale inventory and insufficient levels of home building. The impact of COVID-19 on prospective home buyer concerns and preferences have accelerated these changes." He says, for example, that the virus itself is creating a competitive disadvantage for residences that require an elevator or utilize a great deal of common space.

• Broker Spotlight – Dennis Ulrich – Turlock CA

  If you’re in the Turlock CA area and you’d like to connect with Dennis you can drop him an email here: DUlrich@nexamortgage.com or call: (209) 648-7043

  The post Broker Spotlight – Dennis Ulrich – Turlock CA appeared first on National Real Estate Post.

• CFPB Rescinds MSA Rule from 2015

  Did MSA’s just become okay? Probably not, but the CFPB did rescind a rule they passed back in 2015 regarding the clarity on them. What does this mean to you? Well, an MSA you’ve been avoiding may be an option, if you’ve got the guts! FREE DISC assessments for ALL of your team! Yep just […]

  The post CFPB Rescinds MSA Rule from 2015 appeared first on National Real Estate Post.

• Forbearances Experience Record Decline as Initial Plans Expire

  The number of forbearance plans plunged last week as those that went into effect in the early days of the pandemic hit the end of their initial six-month terms.  Black Knight said nearly one-fifth of the plans ended, as the number fell by 649,000 mortgages or 18 percent of the previous week's total. A total of 2.97 loans remain in forbearance. It was the largest one-week decline, far outpacing the 435,000 drop when the first wave of plans hit the three-month mark in early July. It would be interesting to know how many of the formerly forborne borrowers from both waves had continued to make their monthly payments, using the plans as an insurance policy against potential financial difficulties. Such a possibility has been suggested by both ATTOM Data Solutions and the Urban Institute. The greatest reduction in plans was among loans serviced for portfolio loans and private label securities (PLS). Those loans declined by 228,000 or 24 percent of the total. Both GSE (Fannie Mae and Freddie Mac) loans and the FHA/VA portfolios experienced downturns as well. The GSE portfolios are down by 213,000 loans or 16 percent and the FHA/VA by 208,000 or 15 percent.

• Opendoor Being Investigated by FTC

  As you all know, we’re not huge fans of the iBuyers out there, primarily because of the way they advertise their services to the consumer. We feel that it’s intentionally misleading. Well it appears that the FTC has some feelings about it as well proven by their investigation of the company. Don’t miss out on […]

  The post Opendoor Being Investigated by FTC appeared first on National Real Estate Post.

• Consumers Remain Confident About Job Prospects

  Fannie Mae's Home Purchase Sentiment Index (HPSI) continued to rebound from its spring slide, rising for the second straight month. The HPSI, based on a subset of six questions from the company's monthly National Housing Survey, shows increased optimism about home selling conditions, home price growth and the labor market but that optimism didn't carry forward in September when it came to homebuying conditions and mortgage rate expectations. The Index increased by 3.5 points in September, to 81.0. However, it is 10.5 points lower than in September 2019.Despite the huge layoffs and ongoing unemployment insurance claims, most consumers feel secure about their employment prospects. Eighty-three percent of respondents said they were not concerned about losing their job, a 5-point increase and the percent who were concerned dropped 6 points to 16 percent. This left the net up 11 points at 67 percent, only 2 points lower than in the pre-pandemic era a year ago.

   

• Brokers – Be Cautious of BofA Business Accounts

  There seems to be something going on with Bank of America and other big banks such as Chase and Wells Fargo with respect to business bank accounts for mortgage brokers. Today we have a mortgage broker who had his Bank of America business account shut down, and an article sighting another broker who recently went […]

  The post Brokers – Be Cautious of BofA Business Accounts appeared first on National Real Estate Post.

• Almost 400,000 Delinquent Homeowners Have Better Options

  The Urban Institute (UI) estimates that there are about 400,000 homeowners who have become "needlessly delinquent" as a result of the COVID-19 pandemic.  UI analysts Michael Neal and Linda Goodman credit the Coronavirus Aid, Relief, and Economic Security (CARES) Act with providing "a much-needed lifeline" during the crisis, but conclude that there needs to be a broader approach. The CARES Act allows borrowers to defer mortgage payments for six months with the possibility to extend that period for another six months. Homeowners need only to attest to having a pandemic-related financial hardship. The Mortgage Bankers Association (MBA), which has tracked forbearance plans on a weekly basis, reported that as of September 28, 6.87 percent of mortgage borrowers are in forbearance, including 4.46 percent of borrowers with Fannie Mae and Freddie Mac mortgages and 9.15 percent of borrowers with Ginnie Mae (VA/FHA) mortgages. About a quarter of these borrowers have continued to make mortgage payments, apparently entering forbearance as an insurance policy, but many eligible borrowers have not taken advantage of the benefit and have fallen behind on their payments.  

   

• Refi Application Volume Recovers From Last Week's Loss

  The  Mortgage Bankers Association (MBA) said the volume of purchase mortgage applications declined for a second week but refinancing more than recovered from last week's 7 percent loss. MBA's Market Composite Index, a measure of mortgage loan application volume, increased 4.6 percent on a seasonally adjusted basis during the week ended October 2 and was 5 percent higher than the prior week on an unadjusted basis. The Refinancing Index rose 8 percent compared to the previous week and was 50 percent higher than the same week one year ago. Refinancing accounted for 65.4 percent of the week's applications, up from 63.3 percent the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier and was down 1 percent without an adjustment. Purchasing volume was 21 percent higher than the same week one year ago.

   

   

• 1 Million Followers in 30 Days? Yep.

  Lab Coat Agents is probably the BEST real estate agent resource there is right now. They have so much content you’d be crazy not to subscribe to them. Today we go over what’s coming up this week that you can tune into. LCA is also hugely beneficial to the lending community as well, so for […]

  The post 1 Million Followers in 30 Days? Yep. appeared first on National Real Estate Post.

• July's Home Prices Increase by 5.5%, Breaking a Two-Year Record

  Entry-level priced homes, which continue to be in short supply, are, helping to drive strong price gains. CoreLogic says home prices nationwide, including distressed sales, increased year over year by 5.5 percent in July 2020 and were up 1.2 percent compared to the previous month. The annual increase was the fastest in nearly two years. The company said the "one-two punch of strong purchase demand - bolstered by falling mortgage rates, which dipped below 3 percent for the first time ever in July - and further constriction of for-sale inventory has driven upward pressure on home price appreciation." Dr. Frank Nothaft, CoreLogic's chief economist said, "Lower-priced homes are sought after and have had faster annual price growth than luxury homes. First-time buyers and investors are actively seeking lower-priced homes, and that segment of the housing market is in particularly short supply."

   

• Millennial’s are Ripe for the Picking Right Now

  There’s an article in Realtor Magazine that just came out that seems almost destructive to the housing industry. They site some information from a survey, but just don’t take it in the direction you’d think “Realtor Magazine” would take it. So weird. You absolutely HAVE to get connected with Oaktree Funding for your Non-QM deals. […]

  The post Millennial’s are Ripe for the Picking Right Now appeared first on National Real Estate Post.

• Delinquencies Decline, but That's not the Whole Story

  While overall mortgage delinquencies declined by 0.03 percent from July to August, Black Knight's newest Mortgage Monitor reveals some disquieting information about mortgage delinquencies emerging out of the pandemic's financial upheaval. The company, however, says there are also potentially mediating factors. The overall delinquency rate in August was 6.88 percent 3.6 percent above the pre-pandemic level, but down 0.03 percent month-over-month. The July to August change was considerably smaller than the 0.85 aggregate change in June and July, indicating the rate of improvement may be slowing. This does not, however, mean that more borrowers falling into financial difficulty, but rather that the problem is becoming persistent.

   

• Empire Home Loans – Broker Spotlight – Fair Oaks CA

  To connect with Empire Home Loans CLICK HERE.To connect with Rico Rivera CLICK HERE.To connect with Ashley Haney CLICK HERE. NMLS# 1839243 / 225498DRE# 02086593 / 01172313

  The post Empire Home Loans – Broker Spotlight – Fair Oaks CA appeared first on National Real Estate Post.

• TRID Rule Has Helped Borrowers Understand Their Loans

  The TRID Rule has been in effect for exactly 5 years (October 3, 2015) and the Consumer Financial Protection Bureau (CFPB) has published an assessment of its effects and effectiveness. The TRID Rule and its associated disclosures and forms was part of a mandate to CFPB included in the Dodd-Frank Wall Street Reform and Consumer Protection Act to combine previously separate mortgage disclosures given to consumers under the Truth in Lending Act (TILA) and the 1974 Real Estate Settlement Procedures Act (RESPA). Dodd-Frank also mandates an assessment of the rule within five years of the effective date. Before the TRID Rule, Federal law generally required that consumers applying for mortgages receive two different forms, one with disclosures regarding the cost of credit (TILA) and another concerning real estate settlement costs, the Good Faith Estimate (GFE). Shortly before settlement consumers received two additional forms: the final TILA disclosure and the RESPA settlement statement (HUD-1).

• CFPB 2017 vs 2020

  Today we take a look at the CFPB in 2017 vs 2020. Of course we believed the agency was too heavy handed in 2017, but, could the be too laid back today in 2020? Also, what do you think should be done about pay day lenders? Apparently a lot of pending litigation against pay day […]

  The post CFPB 2017 vs 2020 appeared first on National Real Estate Post.

• Residential Construction Spending Up 7%

  Construction spending expanded again, with residential construction among the healthier sectors. The U.S. Census Bureau put total August public and private construction spending at a seasonally adjusted annual rate of $1.413 trillion compared to $1.393 trillion in July. This is a 1.4 percent increase and is 2.5 percent higher than the prior August. On a non-adjusted basis, the spending was $130.183 billion, about $3 billion more than in July. For the year-to-date (YTD), total expenditures of $927.705 billion are 4.2 percent above the total during the same period in 2019. Private sector spending was at a seasonally adjusted rate of $1.061 trillion, 1.9 percent more than in July and 1.5 percent ahead of spending in August of last year. For the YTD, private sector spending, at $696.743 billion is 3.6 percent ahead of last year.

   

• Forbearances Increase For First Time in 6 Weeks

  The number of active COVID-19 related forbearance plans grew over the past week according to Black Knight's most recent survey on the subject. The number of mortgages in forbearance rose by 21,000, the first increase in six weeks. Forbearances among loans serviced for the GSEs Fannie Mae and Freddie Mac continued to decline, down 9,000, but the number of loans serviced for portfolio held and private label securities (PLS) more than offset that improvement, rising by 28,000. Forborne loans serviced for FHA and the VA also increased in number, but by a relatively modest 2,000. Black Knight puts the number of loans still in forbearance at 3.6 million. More than 75 percent of those have had their original plans extended at some point since March. As of the September 29^th, 1.317 million GSE loans, or 4.7 percent of those two portfolios are in plans as are 1.350 million FHA/VA loans or 11.2 percent. Portfolio/PLS loans in forbearance total 951,000 or 7.3 percent. 

   

   

• Mortgage Applications Starting to Slide

  Mortgage applications are starting to slide a bit and refinances in particular are dropping off. Although most prognosticators see “low” rates into the immediate future, “low” is relative. The question is, what does it mean to your pipeline? As an originator are you okay if your pipeline shrinks by 40% – 60%? If you need […]

  The post Mortgage Applications Starting to Slide appeared first on National Real Estate Post.

• FREE DISC Assessment for ALL From MMA

  What a great gift Carl White and the Mortgage Marketing Animals has given the industry! A 100% FREE DISC Assessment. This is an excellent tool to use not only for your team or employee’s, but for YOURSELF. We can’t thank Carl and his team enough for such a generous gift. Click the banner below to […]

  The post FREE DISC Assessment for ALL From MMA appeared first on National Real Estate Post.

• Perfect Storm For Home Prices?

  The growth of home prices nationally continued to accelerate in July according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. The National Index, which covers all nine U.S. census divisions, rose 4.8 percent in July on an annual basis compared to a 4.3 percent year-over-year  gain in June. There was 0.8 percent appreciation month-over-month before seasonal adjustment and 0.4 percent afterward. The 10-City Composite grew at an annual rate of 3.3 percent, up from 2.8 percent the previous month while to 20-City Composite posted a 3.9 percent increase compared to 3.5 percent in June.  Each composite gained 0.6 percent before seasonal adjustment. The 10-City change was 0.5 percent and the 20-City was 0.6 percent post adjustment. The report notes that data for March through June out of Wayne County, Michigan (Detroit), previously unavailable due to coronavirus related office closures is now online. However, there were not enough records for the month of July to generate a current valid index for the Detroit metro area.

   

• Mortgage Applications Slowed as Many Rush to Beat the Adverse Market Fee

  Mortgage application volume has fallen into an up and down pattern over the last few weeks and last week went to the negative side. The Mortgage Bankers Association said its Market Composite Index decreased 4.8 percent on a seasonally adjusted basis during the week ended September 25 and lost 5 percent on an unadjusted basis.  The Refinance Index fell by 7 percent but was 52 percent higher than the same week in 2019. Refinancing continues to dominate the action, although its share of total applications was down from 64.3 percent during the week ended September 18 to 63.3 percent. The Purchase Index decreased 2 percent on both an adjusted and unadjusted basis from the previous week but was 22 percent higher than the same week one year ago. An unbroken string of annual increases now dates back to the week ended May 22.

• Pending Home Sales Just Hit a New All-Time High

  Contracts for existing home purchases rose for the fourth straight month in August and more than doubled the increase expected by most analysts. The National Association of Realtors® (NAR) says its Pending Home Sales Index (PHSI) rose from 122.1 in July to 132.8 in August, an increase of 8.8 percent. The PHSI, based on contracts to purchase existing single-family houses, townhouses, condos, and cooperative apartments, is now at an all time high and is 24.2 percent above its level in August 2019. The index is also up 44.6 points from the point to which it plunged in April after the widespread business closures and stay-at-home responses to the COVID-19 pandemic. Most analysts had looked for a strong report, but still didn't come close to predicting the actual gains. Those polled by Econoday had looked for an increase between 2.0 and 4.0 percent with a consensus of 3.1 percent. Analysts forecasting for Trading Economics had a consensus increase of 3.4 percent.

• CoreLogic Not Happy With CoreLogic…

  Apparently CoreLogic is not happy with CoreLogic. Yes, you heard us correctly. It looks as though their data, that they charge a lot of money for, isn’t even close to the data being provided by their competitors. Interesting no? Let us know your thoughts below. Need 90 LTV 12 mo bank statements for self-employed? Oaktree […]

  The post CoreLogic Not Happy With CoreLogic… appeared first on National Real Estate Post.

• More New Homes Bought With Non-Conventional Financing in 2019

  Non-conventional lending enjoyed a substantial increase in its share of the market for financing new home purchases in 2019. The National Association of Home Builders (NAHB) says, while conventional loans continued to dominate those purchases, its share shrunk from 71.4 percent of the market in 2018 to 65.0 percent in 2019 while non-conventional mortgages increased accordingly, from 28.6 percent to 35.0 percent. A conventional mortgage is a home loan that isn't backed by a government agency. Non-conventional forms of financing include loans insured by the Federal Housing Administration (FHA), VA-backed loans, cash purchases and other types of financing such as the Rural Housing Service, Habitat for Humanity, loans from individuals, state or local government mortgage-backed bonds. NerdWallet says conventional mortgages often meet the down payment and income requirements set by the GSEs Fannie Mae and Freddie Mac, and they often conform to the loan limits set by the Federal Housing Finance Administration (FHFA), the GSE regulator. Conventional loan borrowers who put at least 20 percent down don't have to private mortgage insurance which is typically required with lower down payments or government-backed loans.

• Wells Fargo CEO Puts Foot in Mouth

  The Wells Fargo CEO has put his foot in his mouth when it comes to hiring minorities. This brings us to the diversity conversation. Clearly there is a problem. Can it be fixed? If so, what are your thoughts on how to make that happen. Let us know in the comments. Want to be on […]

  The post Wells Fargo CEO Puts Foot in Mouth appeared first on National Real Estate Post.

• Barrett Financial – Broker Spotlight – Gilbert AZ

  Barrett Financial has been serving the Gilbert Arizona real estate community for 18 years. They are committed to purchase business and strong real estate partner relationships. If you want to connect with Barrett Financial, click the Barrett Financial Group logo below! NMLS #181106

  The post Barrett Financial – Broker Spotlight – Gilbert AZ appeared first on National Real Estate Post.

• Zillow Hiring Agents as Employees

  Zillow continues to make it’s moves to become the country’s biggest ever real estate company. Now Zillow is hiring agents as employees. For those of you how throw all your money at them, you may as well just work for them. This is the most insane thing we’ve ever seen – people paying their competitor […]

  The post Zillow Hiring Agents as Employees appeared first on National Real Estate Post.

• New Home Sales Crush Forecasts, Soaring to 14-Year Highs

  Once again new home sales exceeded expectations, this time by a lot. Sales of newly built homes rose 4.8 percent in August, to a seasonally adjusted annual rate of 1.011 million. That puts sales an astounding 43.2 percent higher than they were the previous August. It was the sixth straight month of rising sales. After such a string of increases, analysts had expected sales to pull back a bit. Those polled by Econoday were looking for the number to come in between 820,000 and 950,000 with a consensus of 875,000. Perhaps they would have come up with a better forecast had they known that the July number from the Census Bureau and Department of Housing and Urban Development, would be upgraded substantially. The original estimate of 901,000, was revised to 965,000. On a non-adjusted basis, sales were unchanged from July at 83,000 units. For the year-to-date there have been 543,000 new homes sold, a 14.9 percent increase from the 472,000 sales over the first eight months of 2019.

   

• FHFA's Official Report on Q2 Mortgage Relief Numbers

  In its 2^nd quarter Foreclosure Prevention and Refinance Report the Federal Housing Finance Agency (FHFA) says it has helped almost 4.7 million distressed homeowners since it became conservator of the GSEs Fannie Mae and Freddie Mac in August 2008. Over 250,000 of them took place in the second quarter of this year as the pandemic caused millions of job layoffs. The 12-year record of homeowner assistance includes helping 3.99 million homeowners stay in their homes and completion of 2.42 million loan modifications. For 2020 through the end of the second quarter the GSEs completed 30,764 loan modifications, 38 percent of which were on loans originated prior to 2009.  Sixty-five percent of this year's mods were extend-term only.

   

• 70% of Freddie's Portfolio Suggests Refis Aren't Dead

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 27.7 percent in August compared to a 20.0 percent gain in July. The portfolio balance at the end of the period was $2.533 trillion compared to $2.476 trillion the prior month and $2.275 trillion a year earlier. The growth rate for the year to date is 13.0 percent. Purchases and Issuances totaled $131.140 billion and Sales were ($898) billion. The July numbers were $116.83 billion and ($3.803) billion, respectively. Single-family refinance loan purchase and guarantee volume was $87.200 billion in August compared to $77.700 billion in July, representing a 70 percent share of total single-family mortgage portfolio purchases and issuances compared to 72 percent the previous month.

• Forbearances Ending at a Faster Pace

  Black Knight said its weekly forbearance survey found the number of mortgages in active forbearance decreasing at an accelerated rate. Those mortgages fell by 2.6 percent or 95,000 loans over the last week, bring the decline over the last month to 357,000 loans. It was the fifth straight week of improvement and Black Knight noted that since peaking in late May, the total number of forbearances has fallen by 1.17 million or 24 percent. As of September 22, 3.6 million homeowners remain in COVID-19-related forbearance plans, or 6.8 percent of all active mortgages, down from 7 percent last week. Together, they represent $751 billion in unpaid principal. Some 78 percent of those remaining loans have had their terms extended at some point since March. There are 1.1 million plans still set to expire by the end of September as servicers work to assess them for termination or renewal. This is .6 million fewer potential expirations than a week earlier. The largest decrease in plans of the previous week, 51,000 was among portfolio-held mortgages. The -8 percent change took the number down to 923,000 forbearances, 7.1 percent of portfolio-held/private label security (PLS) loans.

• Fannie and Freddie Never Needed a Bailout?

  So the ex-CFO of Fannie Mae is saying that Fannie and Freddie never needed a bailout back in the financial crisis. This at the same time that Mark Calabria is doing his best to get the GSE’s out of conservatorship. Which, by the way, is probable a good idea, just not now! What are your […]

  The post Fannie and Freddie Never Needed a Bailout? appeared first on National Real Estate Post.

• FHFA Says 2-Month House Price Gain was Largest Ever

  Home prices rose another 1.0 percent in July, bringing the year-over-year gain to 6.5 percent according to the House Price Index (HPI) produced by the Federal Housing Finance Agency (FHFA). The agency also revised its previously reported 0.9 percent price change for June 2020 to 1.0 percent.

  All nine of the census divisions posted both month-over-month and annual price gains. Monthly changes ranged from an 0.6 percent increase in the West North Central division to 2.0 percent in New England. The 12-month changes were lowest in the West South Central division at 5.4 percent and the Mountain and the East South Central divisions tied for first place with increases of 7.7 percent.

   

• Ending Fannie/Freddie Conservatorship Still a Top Priority for FHFA

  Mark Calabria, Director of the Federal Housing Finance Agency (FHFA) is stepping up his agency's actions to spring Fannie Mae and Freddie Mac (the GSEs) from their decades long federal receivership. Most recently he called on the mortgage industry to give feedback on FHFA's strategic plan which includes steps to do so.

  FHFA's strategic plan for fiscal years 2021 to 2024 lays out the framework for three key goals over the next few years.

  The third objective of goal 1 is to "Responsibly end the conservatorship" of the GSEs. In his introduction to the plan, Calabria said in addition to the GSEs' obligation to prepare for autonomy, the FHFA must plan for its own "post-conservatorship role as a world-class regulator."

• Serious Delinquencies Grow, but Fewer Overall Missed Payments in August

  As the COVID-19 crisis dragged into its sixth month in August the total number of mortgage delinquencies continued to ebb, but the rate of decline appears to be slowing. Black Knight, in its first look at the month's loan performance data, found the national delinquency rate down 3 basis points to 6.88 percent. There were 13,000 fewer delinquent loans in August than in July, a total of 3.68 million that were 30 or more days past due but not in foreclosure. Black Knight considers loans in forbearance plans as delinquent even if servicers are not reporting them as such to the credit bureaus. The share of borrowers with a single missed payment had already fallen below pre-pandemic levels. In August, the sum of all early-stage delinquencies (those 30 and 60 days past due) fell 9 percent, dropping below that benchmark as well

• Barry Habib – The Media Has it All Wrong

  It’s always great to talk to Barry Habib about the real estate and mortgage markets. Once again he’s telling us that the media has it all wrong. Is there a housing bubble on the horizon as the media would tell us or not? Tune in to today’s show to find out what Barry feels about […]

  The post Barry Habib – The Media Has it All Wrong appeared first on National Real Estate Post.

• Home Sales Surge to Best Levels in 14 Years

  Existing home sales continued on a roll for the third consecutive month, hitting the highest level in August since December 2006. The National Association of Realtors® (NAR) said sales of pre-owned single-family houses, townhomes, condos, and cooperative apartment were at a seasonally adjusted annual rate of The August numbers came on top of a 24.7 percent rise the prior month and 20.7 percent growth in June. Since May, when the market began to recover from its 3-month long pandemic related tailspin, the pace of sales has risen by 2.2 million units.

   

• Mortgage Application Gains Resumed Post-Labor Day, Forbearances at Recent Lows

  Mortgage application activity rebounded last week from the previous week's Labor Day holiday lull. The Mortgage Bankers Association's (MBA's) Market Composite Index, a measure of mortgage loan application volume, increased 6.8 percent on a seasonally adjusted basis and 18 percent unadjusted during the week ended September 18. The prior week's results  included an adjustment to account for the holiday-shortened work week. Both refinancing and purchasing application volumes were strong. The Refinance Index increased 9 percent from the previous week and was 86 percent higher than the same week one year ago. The refinance share of applications constituted 64.3 percent of the total, up from 62.8 percent a week earlier. The seasonally adjusted Purchase Index added 3 percent and the unadjusted index was up 13 percent. Volume was 25 percent higher than the same week one year ago. The last time the Purchase Index did not post a year-over-year gain was during the week ended May 15.

   

   

• Big Banks in Crosshairs for Money Laundering

  This may seem crazy, and well, maybe it is. But it looks as though many big banks are in the crosshairs over money laundering. Could this be more of a reason for the stock market taking a hit than “the CARES act” concerns they’re voicing? What do you think? Let us over here at Listing […]

  The post Big Banks in Crosshairs for Money Laundering appeared first on National Real Estate Post.

• Fannie's Forecast Sees a Brightening Recovery

  Fannie Mae has upgraded its forecast for the third quarter gross domestic product (GDP). It now expects growth at an annualized pace of 30.4 percent, up from the 27.2 percent the company's economists predicted in August. They say that growth has clearly slowed from the days soon after the business shutdowns and orders to shelter in place were gradually lifted by states and cities in May and June, but more recent data points to a continued recovery. It was originally thought that personal consumption expenditures would fall off significantly as expanded unemployment benefits expired, but they rose 1.6 percent in July, and early data for August suggest that growth continued. Auto sales, one component of the PCE, rose 4.5 percent and credit and debit card transactions appear to have increased as well. There are also indications that business and housing investment will grow at a faster pace in the third quarter than previously thought.

   

• Homeowner Equity Surged in Q2

  There was another big surge in the amount of equity on the balance sheets of American homeowners in the second quarter of this year. CoreLogic reports that the 4.3 percent gain in home prices over the past year sent home equity shooting up by 6.6 percent. The report shows U.S. homeowners with mortgages (which account for roughly 63 percent of all properties) saw an average gain in equity from the second quarter of 2019 of $9,800. The collective nationwide increase was $620 billion. This is especially important at this point, as equity may provide some insulation for homeowners during the pandemic. During the housing boom millions of buyers used low down payment mortgages and there was an epidemic of cash-out refinances, leaving many homeowners with little equity. When prices began to fall, millions fell quickly into negative equity, owing more on their mortgages than their homes are worth. This left them with little flexibility to refinance or sell their homes to get out of financial difficulty.

   

• We LOVE the CFPB for This! Seriously!

  The CFPB has released financial training for children on their website that is absolutely free. It’s amazing educational material that ALL kids should learn! CLICK HERE to get to the training. You would be wise to share this with literally everyone you know. Great job CFPB!!

  The post We LOVE the CFPB for This! Seriously! appeared first on National Real Estate Post.

• NAMB Concierge is Live

  NAMB Concierge is Live now and is going to continue to grow and improve. Basically, you dial in via Zoom and get directed to the contacts at various wholesale lenders and other service providers. It’s pretty cool as you don’t have to fish though phone numbers and websites to get the answers you’re looking for […]

  The post NAMB Concierge is Live appeared first on National Real Estate Post.

• Refis Increased Slightly in August, FICO Scores Highest This Year

  The refinance share of loans originated in August rebounded slightly from July levels as interest rates fell to the lowest in Ellie Mae's history. The company's Origination Insight Report says the average rate on all loans fell to 3.09 percent during the month, down from 3.24 percent in July. The 30-year note rate VA loans fell below 3 percent to 2.86 percent from 3.02 percent in July. The 30-year note rate on conventional loans dropped to 3.12 percent from 3.26 percent in July. Similarly, the 30-year rate on FHA loans fell from 3.26 percent to 3.10 percent. As a result of these rates, the refinance share grew to 56 percent of all loans, up from 54 percent in July. The purchase mortgages share dipped to 44 percent from 46 percent.

   

• Forbearance Plan Count Continues to Shrink

  There was a fourth straight decline in the number of mortgage loans in forbearance during the week ended September 15. Black Knight says the total dropped by 26,000 or 0.7 percent to an estimated 3.7 million loans. That is down 22 percent from the peak of over 4.7 million in late May. Volumes have declined in 10 of the last 12 weeks. The remaining forborne loans represent 7 percent of all active mortgages and $781 billion in unpaid principal. Black Knight says there are 1.7 million plans set to expire in September so there could be significant numbers of plan extensions as well as plans ending over the next few weeks.

   

• Fewer Homes Being Flipped, But Profits Are Up

  One out of every 15 home sales in the second quarter of the year were defined as "flips" by ATTOM Data Solutions.  A flip is any arms-length transaction that occurred in the quarter where a previous arms-length transaction on the same property had occurred within the last 12 months.

  ATTOM's second quarter report on flipping says 53,621 single-family homes and condos were flipped in the second quarter, 6.7 percent of total transactions. This is down slightly from 7.5 percent or one of every 13 transactions in the first quarter, but up from 6.1 percent or one in 17 in the second quarter of last year.

  While flipping declined slightly last quarter, both profits and profit margins were up. The median sales price of second quarter flips was $232,402 and the median paid by the investor was $164,500. This resulted in a gross profit on the typical home flip nationwide of $67,902. This 41.3 percent return on investment (ROI) was the highest since...

• FHFA Director Determined to Make Loans More Expensive

  The FHFA Director Mark Calabria seems to be determined to make home loan financing through the GSE’s more expensive. He very skillfully sidestepped any and all requests to stop any fee increases in a 3.5 hour hearing with the HFSC. We will post the link for the 3.5 hour hearing when available. Need help with […]

  The post FHFA Director Determined to Make Loans More Expensive appeared first on National Real Estate Post.

• Pace of Construction Slows after Three Busy Months

  Residential construction activity took a breather in August. The U.S. Census Bureau and the Department of Housing and Urban Development reported this morning that all three measures, housing permits, starts, and completions, were lower than their unexpectedly high July rates. Permits for residential construction were issued during the month at a seasonally adjusted annual rate of 1,470,000. This is down 0.9 percent from the revised (from 1,495,000) 1,483,000 units in July. It was also fractionally lower (0.1 percent) than the August 2019 rate of 1,471,000. Analysts had expected a continuation of the heavy pace of construction that kicked in after a disastrous plunge in numbers in March due to pandemic related shutdowns. Permitting was at the low end of estimates from those polled by Econoday, 1,450,000 to 1,550,000. Their consensus was 1,530,000 units.

   

• The Full Skinny on Forbearance’s – Very Interesting

  Today we have a much better picture on forbearance’s thanks to David Stevens of Mountain Lake Consulting. Behold the forbearance graph provided below that you can make use of if you wish. Let us know your thoughts on it in the comments. Non-QM is here to help you increase your volume as your refinance activity […]

  The post The Full Skinny on Forbearance’s – Very Interesting appeared first on National Real Estate Post.

• Builder Confidence at All-Time High

  The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) set a new high this month, breaking a record that it set only 30 days earlier. The Index, a measure of builder confidence in the new home market, rose 5 points to 83 in September. A 6-point increase in August had shot the Index to 78, tying it with the previous high set in December 1988.

  "Historic traffic numbers have builders seeing positive market conditions, but many in the industry are worried about rising costs and delays for building materials, especially lumber," said NAHB Chairman Chuck Fowke. "More domestic lumber production or tariff relief is needed to avoid a slowdown in the market in the coming months."

  "Lumber prices are now up more than 170 percent since mid-April, adding more than $16,000 to the price of a typical new single-family home," said NAHB Chief Economist Robert Dietz. "That said, the suburban shift for home building is keeping builders busy, supported on the demand side by low interest rates. In another sign of this growing trend, builders in other parts of the country have reported receiving calls from customers in high-density markets asking about relocating."

   

• Credit Availability Declines per MBA

  Credit availability declines per the MBA and why wouldn’t it? When there’s too much business to get done, you’ll start to cherry pick, and it appears that’s indeed what’s happening. What do you think about it? Hey YOU Mortgage Broker! Want to be featured on the show? Let’s have a chat about it. Click the […]

  The post Credit Availability Declines per MBA appeared first on National Real Estate Post.

• Latest Mortgage App Volume Down Over Holiday-Shortened Week

  The Mortgage Bankers Association (MBA) reports that mortgage applications declined during the week ending September 11, 2020. The week's results include an adjustment for the Labor Day holiday. MBA's Market Composite Index, a measure of all mortgage loan application volume, decreased 2.5 percent on a seasonally adjusted basis from the previous week. It was down 13 percent on an unadjusted basis. The Refinance Index decreased 4 percent from the previous week and was 30 percent higher than the same week one year ago. The refinance share of mortgage activity was 62.8 percent of total applications compared to 63.1 percent the previous week. The seasonally adjusted Purchase Index was down 1 percent from one week earlier and 12 percent before adjustment. The index still remained higher than during the same week in 2019, this time by 6 percent.

   

   

• Opendoor IPO Shows Investors Betting on Tech over Agents

  After considering the Opendoor IPO, we compare traditional real estate company valuations to tech real estate company valuations and it makes absolutely no sense. Tune in and tell us what you think about it. The NAMMBA 2020 Virtual Conference Kicks off this Thursday at 12 noon ET. It’s completely free and you’ll be glad you […]

  The post Opendoor IPO Shows Investors Betting on Tech over Agents appeared first on National Real Estate Post.

• Lenders Upbeat About Profits, Loan Demand

  Mortgage lenders had an excellent second quarter in terms of profitability according to the Mortgage Bankers Association, and Fannie Mae's Lender Sentiment Survey for the third quarter indicates they expect that situation to continue. Forty-eight percent of respondents believe their profit margins will increase compared to Q2 while 37 percent say profits will be about the same. Only 15 percent believe there will be a decline. Lenders said consumer demand had remained strong across all loan types, GSE-eligible, non-GSE-eligible, and government, and in some cases hit new highs. More lenders reported that demand for purchase loans grew both for the prior three months and the next three months and refinance mortgage demand remained extremely strong in the third quarter on both a look-back and look-forward basis.

   

• NAMB National – Virtual Oct 14-15

  Like pretty much every other mortgage event this year, NAMB National is going virtual. The dates are October 14-15 and yes it is being recorded and is viewable for 3 months after the event. Free for NAMB members and only $20 for non-members. Click the banner below to learn more and register.

  The post NAMB National – Virtual Oct 14-15 appeared first on National Real Estate Post.

• Pandemic Pushing Gen Z and Millennials to Move Back Home

  It was a phenomenon 12 years ago that ended with a huge decline in homeownership among Millennials, and now it is happening, for the same reason to Gen Zas a huge surge in unemployment sends young adults home to live with their parents. The root cause this time, of course, is vastly different; a deadly virus rather than a general slowdown in the economy coupled with mortgage defaults and delinquency. The Pew Research Center has found that the share of 18- to 29-year-olds living with their parents now constitutes a majority of that age group, surpassing the share in the Great Recession and even topping the previous peak during the Great Depression.

   

• Weekly Forbearance Totals Decline

  The number of loans in forbearance continued to dwindle over the last week, with almost 66,000 fewer homeowners in plans. Over the last 30 days the decline has totaled 238,000 or 6.0 percent. Black Knight says that, as of September 8, about 3.7 million plans are still active, 7 percent of the mortgages in servicer portfolios. This is a 22 percent decline from the peak of 4.7 million in late May. The remaining plans represent $789 billion in unpaid principal. At the beginning of September there were 2 million plans that were set to expire during the month and servicers have already reduced that number to 1.7 million as they assess loans for extending or terminating their plans.

   

• Almost 20 Million Homeowners are Prime Refi Candidates

  Freddie Mac's Mortgage Market Survey published yesterday reported a 7-basis point decline in the 30-year mortgage rate over the previous week and reported that the resulting rate, 2.86 percent, was a new record low. Black Knight reports that this new rate has had a big impact on the pool of refinance candidates. The company says there are now 19.3 million "high quality" refinance candidates, the largest number ever. This is 43 percent of all active 30-year mortgages. Black Knight defines a refinanceable loan as one where the homeowner has a credit score of at least 720, at least 20 percent equity in the home, and the potential for a 75-basis point reduction in their mortgage interest rate. These homeowners have potential savings averaging $299 per month, a national aggregate of $5.8 billion per month if all homeowners took advantage of the opportunity. That is the largest aggregate ever available through refinancing.

• The QM Patch. So What’s Really the Deal?

  The QM patch is scheduled to go away this coming January. Will it go away, will it stay, or will the ability to repay rules simply get changed? That’s the question. If we do simply change the rules to allow higher DTI’s, is it the right thing to do? Let us know what you think […]

  The post The QM Patch. So What’s Really the Deal? appeared first on National Real Estate Post.

• MBA Says Credit Supply Lowest in Six Years

  The Mortgage Bankers Association's (MBA's) Mortgage Credit Availability Index (MCAI) continued to drop in August, an indication that lending standards are tightening. The index fell by 4.7 percent to 120.9 in August. In January, before interest rates started an unprecedented decline and servicers were instructed to grant forbearances to existing borrowers, the MCAI was at 181.9. It was benchmarked to 100 in March 2012. Each of the four component indices moved lower. The Conventional MCAI decreased 8.7 percent, while the Government MCAI decreased by 1.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 8.9 percent, and the Conforming MCAI fell by 8.6 percent.

• Zillow Claims Another Victory Over Agents

  Zillow will never stop – ever – when it comes to taking over the real estate market. In their Q4 letter to their shareholders, they lay out exactly what they’re doing and their exact intent. Over here at the NREP we’re blown away that real estate agents are projected to feed Zillow almost $1 Billion […]

  The post Zillow Claims Another Victory Over Agents appeared first on National Real Estate Post.

• Consumers More Upbeat on Buying and Selling Despite Lower Price Expectations

  Fannie Mae says its Home Purchase Sentiment Index (HPSI) which, before a slight setback in July, had been rebounding strongly from its April COVID-19 related plunge, got back on track last month. The August index, based on responses to six questions in the National Housing Survey (NHS), increased 3.3 points to a 77.5 reading. Five of the six components rose from their July level with consumers reporting a more optimistic view of both homebuying and home-selling conditions, but a slightly more pessimistic view of expected home price growth. The Index remains down 16.3 points year-over-year.

• Getting Ready for the Shift?

  To be a successful loan originator today is tough. You’ve got like, 42 hours worth of work you have to cram into a 12 hour day! The problem is, there’s a shift coming where the refinance side of your pipeline is going to start to dwindle. This probably sounds terrific to most LO’s right now […]

  The post Getting Ready for the Shift? appeared first on National Real Estate Post.

• Q2 Saw Highest Origination Volume in History, Q3 Might be Even Better

  The second quarter of this year was a miserable on many levels, but mortgage origination volume was not one of them. Black Knight's current Mortgage Monitor reports that the second quarter saw the largest quarterly origination volume since the company began tracking it at the beginning of 2000. Low interest rates drove refinancing up by more than 60 percent compared to the previous quarter and 200 percent higher than in the second quarter of 2019. There were $1.1 trillion in first lien mortgages originated during the period, 70 percent of it through refinancing. The 2.3 million refis in the second quarter were dominated by rate/term refinances which saw a four-fold increase from a year earlier Cash-out refinances increased as well, up by 66 percent, but had only a 30 percent share of refinance originations, the lowest in more than six years.

• Mortgage Volume Bounced Back With Last Week's Lower Rates

  The volume of mortgage applications reversed direction last week, pulling out a small gain after three straight weeks of declines.  The Mortgage Bankers Association's (MBA's) Weekly Mortgage Applications Survey for the week ending September 4, was up 2.9 percent on a seasonally adjusted basis and 2.0 percent unadjusted compared to the previous week.

  The Refinancing Index, which had fallen a cumulative 18 percentage points over the previous three weeks, gained 3 percent and its share of mortgage activity rose to 63.1 percent from 62.5 percent of applications. The Refinancing Index was 60 percent higher than the same week in 2019, but that week had included the Labor Day holiday.

• Loan Originators Posted Record Profits in Q2

  While servicing income was down, independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks had a very profitable second quarter. They reported an average net gain of $4,548 on each loan they originated, up from a reported gain of $1,600 per loan in the first quarter of 2020, according to the Mortgage Bankers Association's (MBA) newly released Quarterly Mortgage Bankers Performance Report. "Fueled by a surge in borrower demand and record-low mortgage rates, mortgage production profits in the second quarter reached the highest level since the inception of MBA's report in 2008," said Marina Walsh, MBA's Vice President of Industry Analysis. "Production volume averaged over $1 billion per company, and there was an ideal combination of higher revenues and lower costs. Revenues climbed by 57 basis points (bps) from the first quarter, while expenses improved by $844 per loan. Productivity also increased, reaching levels not seen since 2012."  

   

• CFPB to Amend the Qualified Mortgage

  Hear the new? The CFPB has decide to amend the Qualified Mortgage (QM). There is a comment period if you’d like to make one at the CFPB website. Your thoughts?

  The post CFPB to Amend the Qualified Mortgage appeared first on National Real Estate Post.

• Delinquency Rate Could Double Without More Federal Support

  Mortgage delinquencies spiked in June and the serious delinquency rate, loans 90 or more days past due but not in foreclosure, reached its highest level in more than five years. CoreLogic in its monthly loan performance report, said 7.1 percent of all mortgages nationwide were at least 30 days past due, including those in foreclosure. This is 3.1 percentage points higher than the delinquency rate in June 2019. Further, the company predicts that, barring additional government programs and support, serious delinquency rates could nearly double from the June 2020 level by early 2022. Not only could millions of families potentially lose their home, through a short sale or foreclosure, but this also could create downward pressure on home prices - and consequently home equity - as distressed sales are pushed back into the for-sale market.

   

• STOP the G-FEE Increase. Sign the Petition!

  The proposed G-Fee increase to ALL Fannie/Freddie loans will make it more expensive for all mortgage borrowers. Now is NOT the time for these fee increases on mortgage loans. Please click the banner below to take action. It is very fast and easy to do. Stop the G-Fee increase! Thank you!

  The post STOP the G-FEE Increase. Sign the Petition! appeared first on National Real Estate Post.

• David Stevens on FHFA Leaving Conservatorship – MUST WATCH

  Time to sit down, remove the distractions, and focus on what David Stevens has to say about the FHFA, the G-Fee and the recent move to raise capital in an effort to remove Fannie and Freddie from conservatorship. This could have a catastrophic impact on the mortgage industry. It’s a must watch. CLICK HERE to […]

  The post David Stevens on FHFA Leaving Conservatorship – MUST WATCH appeared first on National Real Estate Post.

• Forbearances Decrease by 4%

  The number of homeowners with mortgages in COVID-19 related forbearance plans dropped during the week ended September 1 after several weeks when there was little change. Black Knight said its weekly survey found 147,000 fewer borrowers in plans than the previous week, a decline of about 4 percent. The company says last week's decrease means there are about 1 million fewer loans in forbearance than at the peak in May. Seventy-five percent of those remaining are in extensions of their original plan. A total of 3.784 million loans remain in forbearance, 7.1 percent of the estimated 53 million loans that are currently active.  Those loans represent $804 billion in unpaid principal. The decline was spread across all loan types with the largest improvement, 75,000 loans, in portfolio-held and private label securitized (PLS) loans. That leaves 973,000 or 7.5 percent of those loans, in forbearance. The number of GSE mortgages fell by 49,000 to 1.425 million or 5.1 percent of those portfolios. FHA/VA loans saw a more modest weekly decline of 23,000 to 1.386 million or 11.5 percent.

• CFPB Goes After 6 VA Lenders for Shady Practices

  The Consumer Financial Protection Bureau (CFPB) has been on a two-month enforcement tear aimed at mortgage lenders employing deceptive practices in the VA mortgage lending area. The Bureau has issued consent orders against six companies since late July in what it terms a "sweep" in response to concerns about potentially unlawful advertising in the market that the VA identified. CFPB found the companies had sent direct-mail advertisements primarily to military servicemembers and veterans that contained false, misleading, and inaccurate statements or lacked required disclosures. The complaints set forth similar instances of violations of the Consumer Financial Protection Act's (CFPA) prohibition against deceptive acts and practices, the Mortgage Acts and Practices - Advertising Rule (MAP Rule), and Regulation Z. The companies are variously accused of using advertisements that misrepresented advertised loans by stating credit terms that the company was not actually prepared to offer to the consumer such as describing an introductory interest rate as fixed when it was instead adjustable. 

• FHFA to Bump G-Fee for ALL Loans.

  Okay so they “postpone” the 50bps refi bump and in the next breath they say they’re going to raise the G-Fee which will impact ALL loans, not just refinances? Here we go again. We’re betting there will be a petition coming down the pipe from NAMB on this bump too. We’ll keep you posted! Need […]

  The post FHFA to Bump G-Fee for ALL Loans. appeared first on National Real Estate Post.

• Realtor Escapes Abduction Thank God.

  Seems like we do a show about this at least once or twice a year. Once again a Realtor nearly fell to foul play as she was attacked while showing a property. This time, fortunately, she was able to evade her attackers and they were later apprehended. For all our Realtor friends out there, both […]

  The post Realtor Escapes Abduction Thank God. appeared first on National Real Estate Post.

• July Home Prices Increase 5.5%, Breaking a Two-Year Record

  Home prices grew in July by the fastest rate in nearly two years, a 5.5 percent annual gain.  According to CoreLogic's Home Price Index (HPI), the month-over-month change was 1.2 percent. The company said it was "The one-two punch of strong purchase demand - bolstered by falling mortgage rates, which dipped below 3 percent for the first time ever in July - and further constriction of for-sale inventory" that has driven upward pressure on home price appreciation. "On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic. A long period of record-low mortgage rates has opened the flood gates for a refinancing boom that is likely to last for several years," said Frank Martell, president and CEO of CoreLogic. "In addition, after a momentary COVID-19-induced blip, purchase demand has picked up, driven by low rates and enthusiastic millennial and investor buyers. Spurred on by strong demand and record-low mortgage rates, we expect to see more home building in 2021 and beyond, which should help support a healthy housing market for years to come."

   

• More Evidence For Mass Exodus To The 'Burbs

  It has been rumored since the first wave of the coronavirus struck in some of the densely populated urban centers, especially in New York and New Jersey. Now, however, there is substantiation of a population shift from the National Association of Home Builders (NAHB). Its second quarter Home Building Geography Index (HBGI) shows that, while the pandemic caused widespread economic impacts for many businesses, housing has weathered the economic storm, rebounding quickly from an April slump. It also shows that, the only region posting a quarterly gain for single-family construction during the second quarter was small metro suburbs. Litic Murali, writing in NAHB's Eye on Housing blog says that more than 55 percent of the U.S. population resides in "large metro areas" but these large areas make up only 8.2 percent of all land in HBGI's surveyed areas (all of the U.S. excluding the territories.) 

• Construction Spending Report Saved by Multi-Family Sector

  Construction spending as a whole was essentially flat in July, but residential spending showed significant growth. The U.S. Census Bureau reported that total expenditures from both public and private sources were at a seasonally adjusted annual rate of $1.365 trillion, a 0.1 percent increase from June but down 0.1 percent from July 2019.

  On an unadjusted basis $124.747 billion was spent compared to $123.675 billion the previous month. For the year-to-date (YTD) $792.641 billion has been expended, a 4.0 percent increase over the first seven months of last year.

  Privately funded construction increased by 0.6 percent compared to June, an annual spending rate of $1.014 trillion. This is down 1.8 percent from the July 2019 total. Private spending for the month was $89.787 billion on a non-adjusted basis up from $89.467 billion in June. YTD spending has increased by 3.3 percent compared to 2019, to a total of $596.309 billion.

• Mortgage Applications Decline for Third Week

  Mortgage applications, both for home purchase and refinancing, declined for the third straight time during the week ended August 28. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of loan application volume, lost 2.0 percent on a seasonally adjusted basis compared to the previous week and was down 3.0 percent on an unadjusted basis. The Refinance Index was also 3.0 percent lower than the prior week although it remained up 40 percent year-over-year. The share of applications that were for refinancing ticked lower, also for the third straight week, and is now at 62.5 percent. The seasonally adjusted Purchase Index declined 0.2 percent on an adjusted basis and 3.0 percent unadjusted. It was 28 percent higher than the same week one year ago.

   

• Zombie Foreclosures ARE BACK!

  When is the last time you heard the term “Zombie Foreclosure?” It’s been a while right? Well, they’re back. Is this a trend? Will we see more? What are your thoughts? Let us know in the comments below. Need a 90 LTV 12 month bank statement mortgage for a self-employed borrower? Oaktree Funding has you […]

  The post Zombie Foreclosures ARE BACK! appeared first on National Real Estate Post.

• More on the 50bps FHFA Refi Tax

  Today we get into the FHFA and on the possibility of them getting capitalized and taken out of conservatorship. We also talk about how that might impact the housing and mortgage industry if it were to happen sooner than later. Basically, it’s really important boring stuff that you should know about. Having trouble with rate […]

  The post More on the 50bps FHFA Refi Tax appeared first on National Real Estate Post.

• Non-Agency Loans are in Need of Forbearance Assistance Too

  A recent posting on the Urban Institute's (UI's) Urban Wire blog touched on six facts about the mortgage forbearance option mandated by the CARES Act for homeowners with federally backed mortgages. Some information came from weekly surveys by the Mortgage Bankers Association (MBA) and Black Knight and have been covered extensively here. These include the basis stats; 7.5 percent of all mortgages were in forbearance as of early August, a percentage that has dropped steadily from 8.9 percent in early June. The share of GSE loans in plans was 5.19 percent, Ginnie Mae (VA/FHA) loans 10.06 percent and the largest share at 10.12 percent was among loans serviced for portfolio lenders or private label securities (PLS).  That last number is significant as PLS are not covered by the CARES Act, a situation that will be covered later in this summary. The article, written by UI analysts Jung Hyun Choi and Daniel Pang includes information from the U.S. Census Bureau's Household Pulse Survey which found racial disparities in the financial impact of the COVID-19 on the ability to manage mortgage payments. The most recent Census survey, conducted in mid-July, found nearly 21 percent of both Hispanic and Black households had missed or deferred the previous month's mortgage payment, compared with 10 percent of white homeowners and about 13 percent of all homeowners with payments due. This gap persisted over the duration of all survey weeks, as Black and Hispanic homeowners continue to be disproportionately burdened by the pandemic's impact on employment and financial stability.

• Fewer Homeowners Leaving Forbearance

  Any decline in the number of mortgages in forbearance appears to have, at least temporarily, reached a plateau. For the second straight week Black Knight's survey found little change; only 1,000 fewer mortgages were in plans during the week ended August 25 than during the previous period. The company estimates that 3.9 million homeowners continue to use the COVID-19 relief authorized by the CARES Act and slightly less than three-quarters are now in an extension of their original 90-day plans. The forbearance total represents $828 billion in unpaid principal and 7.4 percent of all mortgages being serviced, the same percentage as the previous week. There are now about 5.3 percent of all GSE-backed loans in forbearance, numbering 1.474 million. The FHA/VA total is 1.409 million or 11.6 percent and 1.048 million or 8.1 percent of "other" loans, i.e. portfolio loans and those in private label securities (PLS) are in forbearance.

   

• Barry Habib – We are on Borrowed time with Current Rates.

  The mortgage industry benefited greatly with the Corona virus. But according to Barry Habib, this was a gift to the mortgage industry and based on new inflation data, along with more people getting back to work, the current rate environment we’re in right now is on borrowed time.

  The post Barry Habib – We are on Borrowed time with Current Rates. appeared first on National Real Estate Post.

• Fannie/Freddie Extend Foreclosure Relief to Year's End

  Both government sponsored enterprises (GSEs) have announced that their nationwide suspension of single-family foreclosures and evictions has been extended through the end of the year. The suspension, one of several relief options Fannie Mae and Freddie Mac originally announced in March when the COVID-19 national emergency was invoked, has been extended on short term basis and was most recently set to expire on August 31. In addition to the suspension, the two companies continue to allow Their loan servicers to provide up to 12 months forbearance to households financially impacted by the coronavirus and to waive assessments of penalties or late fees. Loan modifications will be available to borrowers at the end of the forbearance period and the companies have provided a menu of options for borrowers to bring their loans current including deferring any payback until the loan is paid off, refinanced, or the home is sold.

   

• $15K Tax Credit for First Time Home Buyers

  Joe Biden is proposing a $15k tax credit for first time home buyers. Where would the money come from? Would seller DPAP’s work better? Find out the answers to these questions and more on today’s show. Need 90 LTV for a self-employed borrower using bank statements for income? Oaktree has you covered. Click the banner […]

  The post $15K Tax Credit for First Time Home Buyers appeared first on National Real Estate Post.

• FHFA Fee Postponed & The Looming Renter Crisis

  So, the FHFA has backpedaled on the refi fee for now, we’ll see where it goes. One of the bigger issues to consider is the looming renter crisis. Will the Government step in to apply some relief? If they do will it solve the problem? What are your thoughts? Need help with rate shoppers? Carl […]

  The post FHFA Fee Postponed & The Looming Renter Crisis appeared first on National Real Estate Post.

• Freddie Mac Delinquencies Jump for Second Month

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 20.0 percent in July compared to a 14.2 percent gain in June. The portfolio balance at the end of the period was $2.476 trillion compared to $2.436 trillion the prior month and $2.251 trillion a year earlier. The growth rate for the year to date is 10.7 percent. Purchases and Issuances totaled $116.383 billion and Sales were ($3.803) billion. The June numbers were $94.331 billion and ($1.880) billion, respectively. Single-family refinance loan purchase and guarantee volume was $77.700 billion in July compared to $65.500 billion in June and representing a 72 percent share of total single-family mortgage portfolio purchases and issuances compared to 78 percent the previous month.

   

• Freddie Mac Reminds Disaster Victims: Mortgage Relief is Available

  While the Gulf Coast escaped the threat of two simultaneous hurricane hits, the remaining storm, Hurricane Laura, looks like an historically dangerous one. It, and the wildfires ravaging California, has prompted Freddie Mac to restate its disaster relief policies. Homeowners can request forbearance of their mortgage payments if they are affected by a presidentially- declared Major Disaster and live in an area where individual assistance programs are available. Those areas will be posted on the FEMA website. Forbearance is available for up to 12 months. Homeowners affected by the disasters who are already in a COVID-19 related forbearance plan and any who are newly in need of assistance should contact their servicers as soon as possible.  

   

• Highest Home Sales Since 2005. Can It Last?

  July marked the third consecutive outsized increase in the Pending Home Sales Index (PHSI) produced by the National Association of Realtors® (NAR) It also was the third of three July sales measures to surprise analysts. NAR said the PHSI, a leading indicator of home sales based on newly signed purchase agreements, rose 5.9 percent from 116.1 in June to 122.1. The increase in the PHSI was the smallest gain among the home sales indicators. New home sales rose 13.9 percent in July and new home sales soared 24.7 percent. Nonetheless, the performance is impressive given that the index has more than recovered from the 88.2 level to which it plunged in April as the nation shut down in response to the outbreak of coronavirus.

   

• Home Price Gains Shrug off Covid Concerns

  Both the Federal Housing Finance Agency's (FHFA's) Housing Price Index (HPI) and the several S&P CoreLogic Case-Shiller indices showed price gains across the U.S. in June. Case-Shiller's numbers showed more moderation in the rate of increase than did those from FHFA. The Case-Shiller's National Home Price Index, covering all nine U.S. census divisions, was up 4.3 percent for the 12 months ended in June, the same annual increase as was posted in May. Prices rose 0.2 percent month-over-month on a seasonally adjusted basis (SA) and were 0.6 percent higher before adjustment (NSA).

   

• New Home Sales Explode in the Midwest, Boosting National Numbers

  New home sales were expected to dip slightly in July after posting 13.8 percent growth in June and setting a 13-year high. Instead, the June sales were revised upward, from 776,000 to 791,000, bringing that month's increase to 15.1 percent and July still managed a 13.9 percent gain. Last month's sales were at a seasonally adjusted annual rate of 901,000 units, the fourth consecutive month-over-month increase. The month's sales of newly constructed homes were up 36.4 percent from the seasonally adjusted rate of 661,000 units during the same month in 2019. Analysts polled by Econoday had expected sales to be in the range of 735,000 to 800,000. The consensus was for sales to be essentially unchanged from June at 774,000.

   

• Purchase Applications Decline Even as Rates Move Lower

  Mortgage applications volume fell for the second time during the week ended August 21, declining 6.5 percent from the previous week according to the Mortgage Bankers Association's (MBA's) seasonally adjusted Market Composite Index. The volume was down 7.0 percent before adjustment. The Refinancing Index lost 10 percent from the previous week's level and the refinancing share of all activity declined 2 percentage points to 62.6 percent. The Index was still 34 percent higher than during the same week in 2019. The seasonally adjusted Purchase Index eked out an 0.4 percent gain but was down 2.0 percent on an unadjusted basis. It was 33 percent higher than the same week one year ago.

   

   

• The USPS The Election and the Mortgage/Real Estate Industry

  The USPS The Election and the Mortgage/Real Estate Industry are the topics of today’s show. Clearly there’s a lot to talk about. So tune in to see what’s up!

  The post The USPS The Election and the Mortgage/Real Estate Industry appeared first on National Real Estate Post.

• Barry Habib is Fired Up!

  Get out of the way! Barry is all fired up about housing, Diana Olick and the FHFA. Adverse Market Fee?? What the heck? Tune in today and see why Barry is all fired up! Today’s show is brought to you by:

  The post Barry Habib is Fired Up! appeared first on National Real Estate Post.

• Forbearances are Leveling Out, With Long-Term Delinquencies now a Concern

  The financial impacts of the COVID-19 pandemic are beginning to emerge and while it appears the crisis initially hit homeowners hard, the duration of the problem is murky. Short term delinquencies are declining, with fewer homeowners entering forbearance, while serious delinquencies are rising. We summarize the results from Black Knight's most recent weekly forbearance report and its "first look" at July loan performance below and will report on the Mortgage Bankers Associations National Delinquency Survey for the 2nd quarter later today.  Black Knight says overall delinquencies continued to improve in July, declining by 9 percent from June to a rate of 6.91 percent with 342,000 fewer loans past due. However, the delinquency rate is double that of July 2019, and 1.885 million more homeowners are 30 or more days behind in their mortgage payment than then, bringng the total to 3.692 million.  That number does not include loans in foreclosure but does include loans in formal forbearance plans.

   

• Existing Home Sales are Booming

  Existing-home sales posted a second month of significant sales gains in July, building on a record 20.7 percent increase in June. The National Association of Realtors^® (NAR) said sales were at a seasonally adjusted 5.86 million units, a 24.7 percent month-over-month increase from 4.72 million and overturning the June record for monthly gains. Sales are now higher than the previous year by 8.7 percent. Each of the four major regions attained double-digit, month-over-month increases, while the Northeast was the only region to show a year-over-year decline. The record-setting pace was greater than what were some outsized predictions. Analysts polled by Econoday had projected sales to fall in a range of 4.60 to 5.75 million. The consensus was 5.4 million.

   

• Late-Stage Delinquencies are Surging, Especially Those With FHA Loans

  Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Mortgage Bankers Association shows the effects of the COVID-19 pandemic fading a bit in early delinquency numbers but surging within the more serious non-current categories. The overall rate of loans 30 or more days past due increased during the second quarter to a seasonally adjusted 8.22 percent of all outstanding one-to-four-unit mortgages. This was up 386 basis points (bps) from the first quarter of the year and 369 bps year-over-year. MBA includes loans in forbearance in its delinquency numbers.

   

• How to Handle Rate Shoppers

  Today we interview Carl White on how his team handles rate shoppers. I think you’ll be surprised at his strategy. Tune in today and learn how he does it and download the script by clicking the banner below. Have a great weekend!

  The post How to Handle Rate Shoppers appeared first on National Real Estate Post.

• Custom Home Building is on a Roll

  Robert Dietz, chief economist for the National Association of Home Builders (NAHB) has provided a couple of updates on housing construction trends taken from the Census Bureau's Quarterly Starts and Completions by Purpose and Design in the association's Eye on Housing blog. Dietz takes a granular look at the trend toward larger homes and custom home building.  

  Dietz says the data shows that custom home building outperformed, in relative terms, spec building in the second quarter, contrary to the "conventional narrative that spec home building saw outsized gains during the April to June time period." Custom home building (defined as built for a specific owner) did decline during the quarter, impacted by the temporary shutdown of work sites in many locations and shaken confidence in the entire economy as the coronavirus hit. However, it was down by 6 percent from a year earlier to 48,000 units while the overall decline in housing starts was 11 percent. Over the last four quarters, custom housing starts totaled 177,000, a 5 percent increase over the four quarters ending in Q2 2019 of 168,000 starts.

• Fires Shut Down NREP

  We are temporarily shut down here at the NREP due to the Napa fires. We are based in Vacaville CA which is just east of Napa. We basically have a ridge line separating the two cities. The fire went over the ridge line and at about 2AM Wednesday morning evacuations were ordered. Several of our […]

  The post Fires Shut Down NREP appeared first on National Real Estate Post.

• Share of Purchase Loans now Catching up With Refis

  Refinance loans continued to dominate mortgage originations in July, but the gap with purchase loans is closing. Ellie Mae's Origination Insight Report for the month showed refinances with a 54 percent share, down from 58 percent in June. Purchasing increased to 46 percent from 42 percent. The rate on closed 30-year fixed rate mortgages declined from an average of 3.40 percent the previous month to 3.24 percent. Those originated as conventional loans had a rate of 3.26 percent, down from 3.42 percent. The FHA rate averaged 3.26 percent and the VA rate 3.02 percent, down 15 and 18 basis points, respectively. The distribution of loan types shifted slightly. The FHA share picked up 1 percentage point to 11 percent and conventional and VA loans each lost a point, dipping to 79 percent and 6 percent. The time to close all loans held at 47 days for the second month but the time to close refinances increased by two days to 50 and purchase loans closed in 44 days rather than 46 the prior month.  

   

• New Mini CFPB Coming Soon to CA

  The real CFPB just isn’t enough for California. Nope, we need our own CFPB. Why should only the Federal Government profit from regulation right? Get ready CA lenders, new fines are on the way. Realtors, want us to market all of your listings for free? Why not right? Click the banner below and fill out […]

  The post New Mini CFPB Coming Soon to CA appeared first on National Real Estate Post.

• Purchase Apps Still Rising Despite Rate Increases

  Mortgage rates rose during the week ending August 14 and, while purchase applications sustained some of their momentum, a slowdown in refinancing pulled overall volume down. The Mortgage Bankers Association said its Market Composite Index, a measure of that volume, decreased 3.3 percent on a seasonally adjusted basis from one week earlier and was 4.0 percent lower on an unadjusted basis. The Refinance Index decreased 5.0 percent from the previous week and was 38 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 64.6 percent of total applications from 65.7 percent the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier but was 1 percent lower on an unadjusted basis. It was 27 percent higher than the same week one year ago, the 13^th straight week of annual improvement.

   

   

• CFPB Wants Your Comments on New Kind of QM

  The Consumer Financial Protection Bureau (CFPB) is proposing a new category of qualified mortgage (QM) which it says is intended to "encourage innovation and help ensure access to responsible, affordable in the mortgage credit market." (we assume they meant "affordable credit in the mortgage market.")  The category, "seasoned qualified mortgages" involves, as the name suggests, holding riskier loans in the originator's own portfolio for three years. It is unclear, from the notice of proposed rulemaking (NPRM) issued on Wednesday, who will then assume or securitize the loans. To be considered a Seasoned QM under the proposal, loans would have to be first-lien, fixed-rate covered transactions that have met certain performance requirements over a 36-month seasoning period. In addition to the in-portfolio requirement, the loan must comply with general restrictions on product features and points and fees and meet certain underwriting requirements. These include that the creditor verify the consumer's debt-to-income ratio (DTI) or residual income at origination and during the seasoning period.   

• FHA Delinquencies on the Rise BIG TIME

  That’s right, FHA Delinquencies are on the Rise BIG TIME! Unemployment is being credited for the recent rise. Could this be a sign of what’s to come? Will we see a shift in the housing market after the election? Let us know your thoughts below. Today’s show is brought to you by one of the […]

  The post FHA Delinquencies on the Rise BIG TIME appeared first on National Real Estate Post.

• Economists Upbeat on Q3, Home Sales Growth Is Too Good To Last

  At the midway point of the current (3^rd) quarter Fannie Mae is looking for a huge improvement in the gross domestic product (GDP). The company's Economic & Strategic Research (ESR) Group is forecasting an increase of 27.2 percent for the quarter and has revised its projected decline for the entire year from 4.2 percent to 3.1 percent.

  The rosy outlook is based on a savings rate of 19 percent in June. "extremely accommodative fiscal and monetary policy to date" and data on mobility and credit card expenditures in July. If actualized it would represent a quick turnaround from the 32.9 percent decline in Q2, the steepest since at least 1947 when the quarterly GDP data series began.

• Homebuilding is on Fire; Best Pace in Over a Decade

  Residential construction rates soared in July with both permits and starts increasing from their June pace by double digits and topping 2019 numbers for the same period. Completions also rose, but at a more subdued rate. The U.S. Census Bureau and Department of Housing and Urban Development said permits were issued during the month at a seasonally adjusted annual rate of 1,495,000, an 18.8 percent gain from June. That June rate was also higher than originally reported, revised from 1,241,000 to 1,258,000. Permitting is now up by 9.4 percent from the same period in 2019. Permitting was significantly higher than had been forecast - with estimates among analysts polled by Econoday of 1,200,000 to 1,380,000 units. The consensus was 1,300,000.

   

• Barry Habib on Rates This Week

  Want to know what to expect this week on interest rates? Tune in today to see what rate guru Barry Habib has to say about it! You might be happy to hear what his thoughts are. Also, need some Non-QM products that you thought weren’t available anymore? You’re probably wrong about that. Register for the […]

  The post Barry Habib on Rates This Week appeared first on National Real Estate Post.

• Builder Confidence Skyrockets, Matching 1988 Record

  Builders have tied their 32-year old record for confidence as measured by the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The Index, which has been conducted by NAHB for 35 years, jumped by 6 points in August to 78 and is also 6 points higher than it was in March, before the COVID-19 pandemic shut down some construction sites and shut in much of the buying public. The last time the HMI was this high was in December 1988. Builders also set a survey high with their perceptions of buyer traffic. Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

   

• FHFA Refi Pricing Bump with David Stevens

  Don’t like the .500bps bump on your refinances thanks to FHFA? Neither does David Stevens. Tune into this important special release show to learn more. Click the banner below to instantly communicate your displeasure to your representatives courtesy of NAMB.

  The post FHFA Refi Pricing Bump with David Stevens appeared first on National Real Estate Post.

• Take Action NOW Fight FHFA Refi Bump

  NAMB has made it extremely easy to take action to fight the .50bps refi bump imposed by the FHFA. All you have to do is click the “Take Action” image below and you’ll have it done in less than 30 seconds. Please defend your industry and the rights of your consumers!

  The post Take Action NOW Fight FHFA Refi Bump appeared first on National Real Estate Post.

• MBA Predicts New Home Sales Surge in July

  The Mortgage Bankers Association (MBA) is predicting another strong month for new home sales. The association says its Builder Application Survey (BAS) data for July 2020 shows mortgage applications for new home purchases increased 39 percent compared to a year ago and is up 1 percent compared to June. This would be the second consecutive month of annual increases. This change does not include any adjustment for typical seasonal patterns. Based on these results, as well as assumptions regarding market coverage and other factors, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 890,000 units in July. This is 15 percent higher than their June pace of 774,000. On an unadjusted basis, MBA estimates that there were 72,000 new home sales in July 2020, an increase of 1.4 percent from 71,000 new home sales in June.

   

• Forbearances Decline for Second Week, Falling Below 4 Million

  Two entities, Black Knight and the Mortgage Bankers Association (MBA) have been tracking loans in forbearance plans since the start of the pandemic. They have diverged a bit in their numbers over the last half year, but both agree, in their most recent reports, that there are now fewer than 4 million borrowers in plans. MBA, in their report earlier this week, said there were 3.7 million loan in forbearance, or 7.67 percent of all loans in servicer portfolios. On Friday Black Knight's report put the number of 3.9 million, or 7.4 percent of the estimated 54 million loans being serviced. About 73 percent of those loans are in extensions of their initial 90-day plan.

   

• Senior LO’s Sentiment on Today’s Underwriting

  Fannie Mae did an interesting survey with senior LO’s on how tight or loose today’s underwriting is. The results are pretty much what you would expect, but worth tuning into. What’s more pressing is another survey that’s starting to show the shift from a sellers market to a buyers market. Oh, and if you’re a […]

  The post Senior LO’s Sentiment on Today’s Underwriting appeared first on National Real Estate Post.

• Let’s Take a Stroll Down Interest Rate Lane

  Are you fully up to speed on what Non-QM products are available to you now that we’ve seen a “comeback” of the channel? Join us next week on a webinar with Oaktree Funding where they’ll go over what’s currently available to you and even field your Non-QM scenarios LIVE! Click the banner below to register!

  The post Let’s Take a Stroll Down Interest Rate Lane appeared first on National Real Estate Post.

• What Pandemic? Home Prices Continue Gains in Q2

  Home prices continued to rise during the second quarter of the year, although at a slower pace than before the advent of the pandemic. The National Association of Realtors® (NAR) said its quarterly survey of metropolitan areas found that single-family home prices rose on an annual basis in 96 percent or 174 of the 181 markets it covers. Prices increased in 96 percent of the markets in the first quarter of the year as well. However, in those pre-coronavirus days the gain was 7.7 percent year-over-year. In the second quarter, prices were up 4.2 percent to a national median of $291,300. "Home prices have held up well, largely due to the combination of very strong demand for housing and a limited supply of homes for sale," said Lawrence Yun, NAR chief economist. "Historically-low inventory continues to reinforce and even increase prices in some areas."

   

• Delinquencies Growing; More Government Assistance Needed

  COVID-19 continued to impact mortgage performance in May. CoreLogic said the number of loans in each stage of delinquency, with the exception of those in foreclosure, grew in May, the second straight month that early-stage (loans 30 to 59 days past due) and adverse (loans 60 to 89 days past due) delinquencies were up on an annual basis. The company's monthly Loan Performance Insights report, notes year-over-year increases in overall delinquencies in all 50 states with the geography of the increases highly correlated with the pandemic's impact. The national foreclosure rate, which includes all post due loans including those in foreclosure, more than doubled compared to May 2019, rising from 3.6 percent to 7.3 percent of all mortgages. Early stage delinquencies increased from 1.7 percent a year earlier to 3.0 percent and adverse delinquencies jumped from 0.6 percent to 2.8 percent.

   

• Mortgage Apps on the Rise Again, Driven by Last Week's Low Rates

  Refinancing rebooted again last week, driving overall mortgage applications volume higher after two weeks of dwindling volume. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, increased 6.8 percent on a seasonally adjusted basis from one week earlier and was 6 percent higher on an unadjusted basis. The Refinance Index jumped by 9 percent compared to the previous week and was 47 percent higher than the same week one year ago. Applications for refinancing accounted for 65.7 percent of the total, up from 63.9 percent the previous week. The seasonally adjusted Purchase Index gained 2 percent from one week earlier and rose 1 percent before adjustment. Purchase mortgage activity was 22 percent higher than the same week one year ago.

   

• Pandemic Reveals Flaws in Loan Reporting

  New research by dv01, a loan data agent (LDA) providing securitization reporting and analytics on consumer unsecured, mortgage, small business, and student loans, says the pandemic has revealed serious weaknesses in the reporting structure for mortgages. The company found significant numbers of unreported loan modifications and says it was these types of reporting errors during the global financial crisis (GFC) which led to an increase in price volatility when those errors were later corrected.

  A new white paper says that, in stark contrast to the GFC, consumer loan performance across asset classes has remained relatively strong. Dv01 has released bi-weekly reports of both loan performance and the relief efforts by issuers and servicers to aid borrowers but has found significant irregularities and inconsistencies across the multiple parties involved in the mortgage process. Even four months into the pandemic there are numerous cases of underreported or entirely omitted modification behavior. Data report quality varies across deals and even between reporting parties within a single deal and there appear to be significant differences between online lending and that of the mortgage industry.

• American Dream Down Payment Act of 2020

  Today we speak to NAMB President Rocke Andrews about a new bill that’s being put together called the American Dream Down Payment Act of 2020. It’s very new so we don’t have all the details, but basically it’s creating a way for would-be home buyers to save their down payment that allows others to contribute […]

  The post American Dream Down Payment Act of 2020 appeared first on National Real Estate Post.

• Hmmm… There’s Somethin’ Fishy Going on Here.

  You may know that Ellie Mae was bought not too long ago for a little over $3 billion. Well it just got bought again for $11 billion. From $3 billion to $11 billion in just 15 months. Hmmm… It kinda seems like there might be somethin’ fishy going on here… What are your thoughts? Today’s […]

  The post Hmmm… There’s Somethin’ Fishy Going on Here. appeared first on National Real Estate Post.

• Homebuyer Sentiment Continues Previous Decline

  Fannie Mae's Home Purchase Sentiment Index (HPSI) faltered a bit in July as it tried to recover from its 29.5-point aggregate plunge in March and April. The index, derived from six questions on the National Housing Survey (NHS), decreased 2.3 points in July to 74.2.  Three of the components deceased from June levels, led by a significantly more pessimistic view of homebuying conditions. The HPSI is down 19.5 points from its July 2019 level. The percentage of respondents who say it is a good time to buy a home decreased from 61 percent to 53 percent, while the percentage who say it is a bad time to buy increased from 27 percent to 38 percent. As a result, the net share of Americans who say it is a good time to buy decreased 19 percentage points to 15 percent.

   

• Here’s a Way Zillow Can Help Agents…

  There’s a lot we cover today from Zillow to rates to the economy. So tune in and see if anything stands out to you. Also, if you’re an LO and you’re feeling a bit overwhelmed, click the banner below for a great cheat sheet from Carl White that’s going to help a whole bunch!

  The post Here’s a Way Zillow Can Help Agents… appeared first on National Real Estate Post.

• Foreign Buyers are Pumping the Brakes on Home Purchases

  Foreign buyers cut back their investment in U.S. residential properties over the 12 months that ended in March. It was the second year-over-year decline. The National Association of Realtors® (NAR) annual survey among its members about their transactions with international clients found foreign buyers purchased $74 billion in existing U.S. homes from April 2019 through March 2020, a 5 percent decline from the same period a year earlier. The number of properties purchased dropped 16 percent to 154,000. Foreign buyers who were U.S. residents, either as recent immigrants or holding the appropriate visas, purchased $41 billion in residential real estate, down 8 percent from the prior period. Foreign buyers living abroad spent $33 billion, a 1 percent decrease. Those two types of international buyers were responsible for 4 percent of the nation's total existing home sales of $1.7 trillion during that period.

   

• Another Wave of Forbearances is Probably On The Way

  There was a significant decline in the number of active COVID-19 related forbearance plans over the past week, but that decrease did not necessarily mean homeowners were emerging from financial difficulties. Black Knight said its weekly survey found 101,000 fewer loans in forbearance, leaving just over 4 million or 7.5 percent of servicer portfolios in active plans, the smallest share since late April. Those loans represent $852 billion in unpaid principal. The company says that one reason behind the reduced number was the expiration of initial plans. It estimated that about a half million were set to expire at the end of July. An initial wave of 2.5 million expirations hit at the end of June. More than two-thirds of the plans that remain in forbearance have had their plans expanded, most for another 90 days. This will mean another wave of expirations involving about 2.2 million plans will arrive in September and October.  

   

• Zillow is Back and DR Horton is with Them.

  The mortgage market continues to act in a strange manner with respect to interest rates. Zillow is back competing with real estate agents and has even gone so far as to partner with DR Horton offering their buyers Zillow-Offers to buy their homes. Need Non-QM products? Oaktree Funding has a great variety for you! Click […]

  The post Zillow is Back and DR Horton is with Them. appeared first on National Real Estate Post.

• Refinances Cooling as Purchases Heat Up

  As a loan originator are you reading the writing on the wall? Do you realize that you need to start diving back into the purchase market now? Rates are dropping, but so is refi volume, what does that tell us? Tune in to today’s show and learn more. To learn more about Listing Booster Premium […]

  The post Refinances Cooling as Purchases Heat Up appeared first on National Real Estate Post.

• Mortgage Application Volume Pulls Back For Second Consecutive Week

  Mortgage application volume declined during the week ended July 31 even as mortgage interest rates reached another all-time low. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decreased 5.1 percent on a seasonally adjusted basis from one week earlier and was down 5 percent unadjusted. Refinancing took the larger hit. That index fell 7 percent from the previous week and accounted for 63.9 percent of all applications, down from 65.1 percent the prior week. Activity was 84 percent greater than the same week one year ago. The Purchase Index decreased 2 percent from one week earlier on both a seasonally adjusted and a non-adjusted basis. It was 22 percent higher on an annual basis.  

   

• Maybe Home Prices Aren't in Trouble After All?

  Home prices increased in June at the fastest pace in more than seven years. CoreLogic said its Home Price Index (HPI) rose 1.0 percent from May, the largest month-over-month gain since January 2013. The appreciation from April to May was 0.7 percent. Prices rose year-over-year by 4.9 percent compared to 4.1 percent in May. "Home price appreciation continues at a torrid pace reflecting fundamental strength in demand drivers and affordability," said Frank Martell, president and CEO of CoreLogic. "As we move forward, we expect these price increases to moderate over the next twelve months. Given the economic outlook, housing remains a bright spot for the foreseeable future."

   

• Is the Real Estate Industry on Borrowed Time?

  Based on everything that’s going on, it just seems like we’re on borrowed time in the mortgage and real estate industry. The massive unemployment is artificially quenched by Government stimulus. At some point this has to come to an end. What are your thoughts? Let us know in the comments below.

  The post Is the Real Estate Industry on Borrowed Time? appeared first on National Real Estate Post.

• Housing Affordability Best in Four Years, Purchase Rate Locks Surge

  The last report from Freddie Mac put its 30-year fixed rate mortgage (FRM) at 2.99 percent, up 1 basis point from the all-time low. Black Knight, in its new Mortgage Monitor, says that has made home affordability the best in four years. As of mid-July, it required only 19.8 percent of the nation's median monthly income to make the mortgage payment on an average priced home using that 30-year FRM and a 20 percent down payment. That is more than 5 percent below the average over the 1995-2003 period. The required monthly payment, $1,071, is 6 percent less than last July despite an average $12,000 increase in home prices over that same period. After 97 consecutive months, these record-low mortgage rate have made homeownership the most affordable it has been since 2016, and, while many areas, especially those along the coasts, remain out of reach for many low and middle-income earners, each of the 25 markets are seeing their strongest affordability in more than 2 years. Black Knight says, within the 100 largest markets several, including Virginia Beach, Hartford, and Scranton, have the strongest affordability levels in a decade and a half and six states, Louisiana, Arkansas, Iowa, West Virginia, Kentucky and Maryland, payment-to-income ratios are the lowest in more than 25 years.

• More Home Buyers are in the Market, but Shopping Takes Longer

  In the second quarter of 2020, 11 percent of American adults were planning on purchasing a home over the next 12 months, and of those, almost half were actively engaged in doing so. Rose Quint, writing in the National Association of Home Builders' (NAHB's) Eye on Housing blog  says that the 49 percent who were actively shopping was significantly higher than a year ago when 41 percent were in the game but was identical to the share in Q1. Quint says this suggests that the COVID-19 crisis and its accompanying record-low mortgage rates have converted some prospective buyers into active buyers. The share of buyers who were actively looking versus thinking about it differs significantly by age group. Of Millennials planning a home purchase in the next year, 57 percent are already actively looking but among Boomers, that share is only 37 percent. Among Gen Z and Gen X buyers the share who were active was 40 percent and 47 percent, respectively.  Regionally those in the Northeast are the most likely to be actively engaged in the purchase process (57 percent), compared to 44 percent in the Midwest, 45 percent in the West, and 50 percent in the South.

   

• Construction Spending Largely Unchanged as Shutdowns End

  Construction spending held firm in June, inching down fractionally from the May level and increasing a bit compared to June 2019. The U.S. Census Bureau said total spending during the month was at a seasonally adjusted annual rate of $1.355 trillion, down 0.7 percent from the $1.365 trillion spending rate in May. On an annual basis the rate was up 0.1 percent.

  On an unadjusted basis there was $123.377 billion spent compared to $117.226 billion the prior month. Spending for the first six months of the year was up 5.0 percent from the same period in 2019 at $667.920 billion.

• Advantages of Being Part of an Association

  There are distinct advantages of being part of an actual association. Today we interview NAMB President Rocke Andrews about how these advantages specifically relate to NAMB. Tune in and let us know your thoughts! Have a great Sunday.

  The post Advantages of Being Part of an Association appeared first on National Real Estate Post.

• PRIME JUMBO is Hot with REMN

  Jumbo is a tough product to find right now so here at the NREP we want to let you know when it shows up. With that said, Prime Jumbo is hot with REMN right now. If you have any Jumbo needs be sure to check these guys out. Get the NREP Mobile App NOW in […]

  The post PRIME JUMBO is Hot with REMN appeared first on National Real Estate Post.

• More Evidence of Strength in Housing as GDP Tumbles

  The National Home Builders Association (NHBA) has been saying since the COVID-19 virus first began to ravage the economy, that it might be housing that would drive the eventual recovery. Now they have some real evidence. The record setting 32.9 percent second quarter decline in the gross domestic product (GDP) revealed on Thursday had at least one bright spot. NAHB's chief economist Robert Dietz says the share of residential related economic activity reached its highest mark since the third quarter of 2007, increasing to 16.2 percent during the otherwise dismal quarter. Part of the reason for the growing share, of course, was the weakness of other sectors, and the residential fixed investment share held at 3.3 percent of GDP.

   

   

• Barry Habib – Critical Numbers to Watch for Next Week.

  Tune in this morning with Barry Habib and see what’s to be expected this coming week. This message is also very good for consumers. If you happen to be a consumer, you’ll want to reach out to the loan officer that shared this message with you to see what your options might be during these […]

  The post Barry Habib – Critical Numbers to Watch for Next Week. appeared first on National Real Estate Post.

• Feeling Overwhelmed Right Now? This Will Help.

  Are you feeling a little overwhelmed right now? You can fix it if you know how. Today Carl White talks about his “cheat sheet” and how it can really help you today and going forward. Tune in and see what you think. To get the cheat sheet click the banner below!

  The post Feeling Overwhelmed Right Now? This Will Help. appeared first on National Real Estate Post.

• Fannie and Freddie Remain Profitable Despite Mortgage Delinquencies

  Both government supported enterprises (GSE) reported increased profits in the second quarter of 2020 compared to Q1. Fannie Mae said its net comprehensive income was $2.53 billion compared to $476 million and Freddie Mac's quarterly results were 1.94 billion, an increase of $1.32 billion from the previous period.

  Both companies had reported extraordinarily low net profits in Q1, largely due to a shift from credit-related income to credit-related expenses as allowances for loan losses were increased to reflect expected impacts from the COVID-19 pandemic. Freddie Mac also attributed the Q1 downturn to lower net interest income.

• JD Power Ranks Mortgage Servicer Satisfaction

  The performance of mortgage loan servicers is lacking in the eyes of many of their customers, even this early in the pandemic driven recession. J.D. Power's 2020 U.S. Primarily Mortgage Servicer Satisfaction Study found customers reporting long wait times to speak with customer service representatives and little proactive communication on the part of the companies.

  J.D. Power surveyed customers 7,275 customers who originated or refinanced mortgages more than 12 months earlier on the performance of more than 30 of the nation's largest servicers. The survey, fielded in March and April, looked at performance across six factors, onboarding, billing and payment, administration of escrow accounts, fees, communications, and interaction via websites, live and automated phone. The study also explores customer satisfaction based on behavioral segments, such as risk/loan status, servicing transfers, tenure with servicer and demographics.

• FHA/VA Forbearances Continue to Climb

  As of Wednesday, there were 4.102 million mortgages in forbearance plans. This is 7.7 percent of the 53 million loans in servicer portfolios. Black Knight said its weekly survey noted a 17,000-loan decrease in total forborne loans over the previous week. What remains represents $879 million in unpaid principal. The number of GSE loans (Fannie Mae and Freddie Mac) loans in forbearance fell by 30,000 to 1.595 million, 5.7 percent of its total portfolio and an unpaid balance of $335 billion. Loans serviced for portfolio and private label securities (PLS) were also down, declining by 5,000 to 1.072 million or 8.2 percent of the total. However, loans serviced for Ginnie Mae, which guarantees FHA, VA, and USDA loans, rose by 18,000 loans to the highest level, 1.435 million, since early July. It was the third straight week of increases in that portfolio and brought the share of forbearances to 11.9 percent of the Ginnie Mae portfolio and a balance of $247 billion.

• More Stimulus More Money More Loans

  Looks like there’s more stimulus money on the way. What does it mean to you? Tune in to today’s show and find out. Are you an LO feeling a little overwhelmed? Let Carl White give you a hand. Click the banner below!

  The post More Stimulus More Money More Loans appeared first on National Real Estate Post.

• The Mortgage Steroid Era is Here.

  Once again there’s a bunch of stuff we editorialize today. One of the items though is that Ginnie Mae has made a connection between credit scores and forbearance’s. Tune in and see what you think. Let us know in the comment section below. Have a great day! Today’s show is brought to you by:

  The post The Mortgage Steroid Era is Here. appeared first on National Real Estate Post.

• May Home Prices Unexpectedly Stall

  Home prices increases slowed slightly in May on both a month-over-month and an annual basis according to the S&P CoreLogic Case-Shiller Indices. The U.S. National Home Price Index which covers all nine U.S. census divisions, rose 4.5 percent in May compared to a year earlier. In April, the annual gain was 4.6 percent. There was an increase of 0.7 percent from April to May before seasonal adjustment and 0.1 percent afterward. Case-Shiller again reported that, because of pandemic-related delays in the Wayne County, Michigan deed recording office, sales transactions for Detroit, are unavailable. Therefore, that city is not included in the composite indices.

   

• Q2 Homeownership Hits 12-Year High

  The U.S. homeownership rate moved significantly higher in the second quarter of 2020, reaching the highest level since the third quarter of 2008 at a rate of 67.9 percent. The U.S. Census Bureau reported the rate in the first quarter of the year was 65.3 percent and it was 64.1 percent a year earlier. Homeownership topped 69 percent for most of 2004 and into early 2005 before beginning a steadily decline to a low of 62.9 percent in the second quarter of 2016. The year-over-year increase in the second quarter of 2020, 3.8 percentage points, represents 76 percent of the aggregate gain in the rate since that all-time low.

• Mortgage Apps Pull Back for the First Time in a Month

  Mortgage application volume declined for the first time in four weeks during the week ended July 24. The Mortgage Bankers Association (MBA) said is Market Composite Index, a measure of that volume, was down 0.8 percent on a seasonally adjusted basis from the prior week and down 1 percent before adjustment. The Refinance Index dipped 0.4 percent from the previous week although it was still 121 percent higher than the same week in 2019 and made up 65.1 percent of total applications. The share was 64.8 percent the previous week. The seasonally adjusted Purchase Index ticked down 2 percent from one week earlier. The unadjusted index 1 percent lower week-over-week but up 21 percent on an annual basis.

   

• Freddie Mac's Volume Increased in June, Delinquencies Skyrocketed

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 14.2 percent in June compared to a 5.5 percent gain in May. The portfolio balance at the end of the period was $2.46 trillion compared to $2.407 trillion at the end of May and $2.239 trillion a year earlier. The growth rate for the year to date is 9.0 percent. Purchases and Issuances totaled $94.331 billion and Sales were ($1.880) billion. The May numbers were $78.329 billion and ($2.799) billion, respectively. Single-family refinance loan purchase and guarantee volume was $65.500 billion in June compared to $54.500 billion in May and representing a 78 percent share of total single-family mortgage portfolio purchases and issuances compared to 76 percent the previous month.

• Pending Home Sales Continue Remarkable Rebound

  Pending home sales soared again in June, although the liftoff was relatively shallow compared to the 43 percent increase in May. The National Association of Realtors'® (NAR's) Pending Home Sales Index (PHSI). The index, a forward-looking indicator based on contracts to purchase existing homes, rose 16.6 percent compared to May, and increased year-over-year by 6.3 percent. The index is now at 116.1. The two months of improving activity have brought the index back from its April level of 69.0 where it landed after falling by more than 20 percent in both that month and in March as much of the nation was shut down by the COVID-19 pandemic. The gains were above even the best guesses by analysts polled by Econoday. Their predictions ranged from a 10 percent downturn to gains of 15.6 percent. The consensus was an increase of 5.2 percent.

   

• Economists Fearful of 2021

  There’s a lot going on today on the show so be sure to tune in for all of it. But one of the main things is the mood of some economists around the country who aren’t too enthusiastic about things heading into 2021. Today’s show is brought to you by:

  The post Economists Fearful of 2021 appeared first on National Real Estate Post.

• Housing Affordability is Still a Challenge, but Improving

  The National Association of Home Builders' (NAHB') Housing Trends Report for the second quarter of 2020 found slightly less than a quarter of prospective home buyers could afford a median-priced home in their local markets, leaving 77 percent shut out.  However, Rose Quint, writing in NAHB's Eye on Housing blog, calls that an improvement from a year ago when only 20 percent could buy. She says that lower interest rates are responsible for the change. There is remarkable similarity across generations. Among Gen Z, Millennials, and Boomers, 76 percent of buyers can afford fewer than half the homes for sale in their markets. Among Gen X buyers the share is even higher, 78 percent. There was also little difference in affordability across regions.

   

   

• Pricing as a Broker

  As a mortgage Broker, how do you handle pricing your borrowers? On any given day one wholesale lender may be better than another, which can completely flip around on the following day. Do you always go for the best price? Do you let your borrowers know what your pricing is from different lenders and advise […]

  The post Pricing as a Broker appeared first on National Real Estate Post.

• Zillow-Dotloop and Webinar WITH Facebook for Realtors

  Today we interview Tristan Ahumada with Lab Coat Agents. We talk about the buzz that’s going around about Zillow-Dotloop and how it may or may not impact real estate teams and agents. We also want to let you know about two webinars that Lab Coat Agents are hosting this week. One is with Facebook where […]

  The post Zillow-Dotloop and Webinar WITH Facebook for Realtors appeared first on National Real Estate Post.

• Rate Bump in the Future?

  There might be a bit if a bump in your future when it comes to interest rates. We interviewed Barry Habib last Thursday to see what he’s seeing and, as always, he had important insights into what you can expect this week. Tune in! Also – you can try MBS Highway and get Barry’s book […]

  The post Rate Bump in the Future? appeared first on National Real Estate Post.

• New Home Sales Explode Back to Pre-Pandemic Levels

  New Home sales have done it again, rising for the third straight month. The U.S. Census Bureau and Department of Housing and Urban Development estimate that newly constructed single-family homes were sold at a seasonally adjusted annual rate of 776,000 units. This is a 13.8 percent increase over the May rate, which was revised higher, from 676,000 units to 682,000. Sales are now greater than the same month in 2019 for the first time since the pandemic struck, up 6.9 percent compared to June of last year. They also topped the 774,000 units reported in January 2020, said to be a 13-year high. Sales were higher than even the most optimistic projection by analysts polled by Econoday. Their forecasts ranged from a 648,000-unit annualized rate to 720,000. The consensus was 700,000. On an unadjusted basis there were 74,000 new homes sold during the month. Sales in May were estimated at 64,000. For the year-to-date sales have totaled 372,000, up from 360,000 for the first half of 2019, a 3.2 percent gain.

• 3 Trillion in Mortgages Projected – How Can it Get Done?

  The mortgage market has never been able to do more than 2 trillion in mortgage volume and is now projected to originate 3 trillion in business. How in the world is that going to happen, especially when Fannie Mae says they see rates going even lower! Today’s show is brought to you by:

  The post 3 Trillion in Mortgages Projected – How Can it Get Done? appeared first on National Real Estate Post.

• 90 Day Delinquencies Edge up as Crisis Hits Three Month Mark

  While serious delinquencies felt the first impact from the COVID-19 pandemic in June, overall delinquencies were actually lower. Black Knight's "first look" at loan performance during the month shows the national delinquency rate, which rose more than 4 percentage points in May to 7.8 percent, edged down to 7.6 percent last month. The 89,000-loan decline (2.3 percent) was the first improvement in five months. The 4.03 million mortgages that were 30 or more days past due but not in foreclosure still represented a 103.6 percent increase from a year earlier. Black Knight includes loans in forbearance plans in their delinquency numbers.  

   

• Fannie/Freddie Borrowers Continue to Exit Forbearance

  Black Knight notes a slight increase in the number of forbearance plans in effect this week even as the number of forborne loans serviced for the GSEs (Fannie Mae and Freddie Mac) dropped sharply. The total number ticked up to 4.119 million, a 2,000-loan increase from the prior week. The total is 7.8 percent of the 53 million active mortgage loans and represents an unpaid principal of $890 billion. The GSE loans in forbearance dropped by 18,000 during the week, largely offsetting increases in portfolio/private label securitized (PLS) loans and those serviced for Ginnie Mae (FHA and VA loans). Those loans rose by up 12,000 and 8,000, respectively. There are now 1.625 million GSE loans in forbearance, 5.8 percent of that total portfolio. The unpaid balance of those loans is $341 billion. After the increase Ginnie Mae loans in forbearance represented an 11.7 percent share and a total of $1.417 loans with a balance of $243 billion. Portfolio/PLS loans with an aggregate balance of $305 billion were in plans; 1.077 million loans and an 8.3 percent share of those portfolios.

• HUD Eliminates Obama Era Fair Housing Rule

  It had been threatened from the beginning of the Trump administration, but this week the hammer fell. U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson has announced the formal termination of the Obama Administration's Affirmatively Furthering Fair Housing (AFFH) regulation issued in 2015. In a press release Carson called the regulation "complicated, costly, and ineffective." Under the rule, any community receiving HUD money was required to analyze its housing occupancy by race, disability, familial status, economic status, English proficiency, and other categories and analyze any factors that present barriers to housing. It then must then formulate a plan to eliminate those barriers which must be approved or disapproved by HUD. This must be done every five years at both a local and regional level. Federal funds could be withheld from any jurisdiction that didn't make sufficient effort to comply. HUD had been nibbling away at the regulation for several years. In January 2018 it suspended the regulation's 92 question grading tool and announced it was suspending local government's obligation to comply with the rule until late 2020. In January of this year the agency published a substitute regulation called "Preserving Community and Neighborhood Choice" and invited public comment.  According to the National Fair Housing Alliance (NFHA), 19,500 comments were submitted.

• Time to Improve Your Video Marketing.

  CLICK the Banner Below to get Carl’s Cheat Sheet! Today we interview Jeff Pfitzer with USA Mortgage/Biz Video School/Lab Coat Agents. Yes, Jeff wears a few hats. The hat in question today is about your video marketing. I think many of us have given it a try but few are really excelling at it. Tune […]

  The post Time to Improve Your Video Marketing. appeared first on National Real Estate Post.

• Existing Home Sales Roared Back in June, Ending 3-Month Drought

  Existing home sales ended a three-month string of losses arising out of the COVID-19 pandemic with a flourish, soaring by 20.7 percent from May to June. Sales rose from a seasonally adjusted annual rate of 3.91 million units in May to 4.72 million units. The National Association of Realtors® (NAR) said sales of single-family homes, townhomes, condominiums and co-ops were still down year-over-year by 11.3 percent. Even though NAR said the increase was at a record pace, it fell short of projections. Analysts polled by Econoday had expected sales to rise to an annual number ranging from 4.35 to 5.10 million with a consensus of 4.8 million. Single-family home sales were up 19.9 percent from 3.57 million in May to 4.28 million but remain down 9.9 percent from one year ago. Existing condominium and co-op sales rose 29.4 percent to 440,000 units, an annual loss of 22.8 percent. "The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown," said Lawrence Yun, NAR's chief economist. "This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue."

   

• Forbearance Penalties Are Making Things Harder for Low-FICO, First-time Borrowers

  The Urban Institute (UI) is speculating that a new penalty imposed on loan originators and arising out of the COVID-19 forbearance plans is beginning to significantly tighten the credit box. A paper written by analysts Laurie Goodman and Michael Neal says that mortgages are considerably more difficult to get than they were four months ago, and this is disproportionally affecting first-time, Black, and Hispanic homebuyers. The Federal Housing Administration (FHA) and the GSEs Fannie Mae and Freddie Mac have all imposed a penalty on lenders whose loans go into forbearance before they are delivered to Ginnie Mae, the agency that securitizes FHA and VA loans, or the GSEs. Ginnie Mae and the GSEs insure or guarantee more than 70 percent of the outstanding mortgages in the United States. Fannie Mae and Freddie Mac now place an additional delivery fee of 5 percent for first-time homebuyers and 7 percent for all other purchase borrowers and rate-and-term refinances. Cash-out refinances that are in forbearance are not saleable at all. The FHA requires its servicers to absorb 20 percent of the eventual loss if the loan misses two payments in the first two years.

   

• Why Instagram for Real Estate?

  Why Instagram? Should we do it? If so, how do we do it? Is there any real chance of getting some business from Instagram? Today we interview Michelle Berman, the industry’s leading Instagram Coach. There is a way to make what may be just a fun social media outlet for some, into a lead generation […]

  The post Why Instagram for Real Estate? appeared first on National Real Estate Post.

• Mother-In-Law Units Helping to Fill Housing Demand

  One of the trends in attempts to provide more affordable housing is the growth of accessory dwelling units (ADUs) such as granny flats, garage apartments, or in-law suites. These aren't a new thing, Freddie Mac points out, in a research paper on the subject, that Fonzie occupied an above-garage apartment at the Cunningham home, but they have been somewhat invisible, and often illegal. The invisibility was often linked to their illegality. Zoning laws passed during the postwar rise of suburbs often limited construction of high-density housing and because so many ADUs were built against city ordinances, without required permits, little research literature was published. Freddie Mac could account for only three or four papers in the 1980s and 1990s and they were mostly small in scale and based on limited data. The data for the new paper was gathered from property descriptions on Multiple Listing Service (MLS) boards. It looks at the growth of these units, the various structural types of ADUs in use (both permitted and illegal) and discusses the measurable benefits of having ADUs in our communities.

   

• Mortgage Apps Continue Gains, Forbearance Totals Drop Below 4 Million

  Even with some interest rates ticking higher, both purchase and refinance activity increased last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 4.1 percent on a seasonally adjusted basis from one week earlier and was up 4.0 percent unadjusted. It was the third consecutive week of gains. Refinancing put in the stronger performance, that index increased 5 percent from the previous week and was 122 percent higher than the same week in 2019. The refinance share of mortgage activity rose to 64.8 percent of total applications from 64.2 percent the previous week. The Purchase Index was up 2.0 percent on both an adjusted and unadjusted basis. It was 19 percent higher  year-over-year.

   

• Home Prices Fell Slightly in May

  House prices fell in May, although they remain well ahead of prices a year earlier. The Federal Housing Finance Agency (FHFA) said its House Price Index (HPI) dropped by 0.3 percent from its April levels. Prices were down or unchanged in eight of the nine census divisions and the 0.2 percent increase reported for April was revised down to 0.1 percent. Prices were 4.9 percent higher on an annual basis. The seasonally adjusted monthly changes in the census divisions ranged from -0.8 percent in the Pacific division to an 0.1 percent gain in the South Atlantic. The 12-month changes were all positive, ranging from 3.7 percent in the New England division to 6.3 percent in the Mountain division. The FHFA HPI is based on the purchase price of homes financed by either Fannie Mae or Freddie Mac. The index was benchmarked at 100 in January 1991. The level in May was 287.3.

• More Non-QM Products On the Way

  Non-QM is bouncing back in a huge way right now and Oaktree Funding is leading the pack. Tune in today to learn what’s available now and what’s in the very near future that can help you sell more homes and close more loans.

  The post More Non-QM Products On the Way appeared first on National Real Estate Post.

• NAMB – A Brief History

  The post NAMB – A Brief History appeared first on National Real Estate Post.

• Preparing for the Crash Part II

  We did a post this February titled “Preparing for the Crash” where we spoke about trying to make sure your set when the mortgage market changes and the refinances go away. Today we talk to Coach Bill Hart about a video he recently posted titled “Get off of my lawn”. In this video Coach Bill […]

  The post Preparing for the Crash Part II appeared first on National Real Estate Post.

• Barry Habib Weekly Update

  Welcome to another edition of Saturday’s with Barry. Today Barry has some very insightful information about what’s really going on with unemployment and how it can impact both mortgages and the real estate market. If you’re not an MBS Highway member be sure to get a free trial by clicking the logo below!

  The post Barry Habib Weekly Update appeared first on National Real Estate Post.

• Construction Continues Post-Plunge Gains

  All three measures in the Census Bureaus June residential construction report moved higher, as the building industry continued to recover from its April collapse. However, of the three, only the rate of units completed was higher than its June 2019 level. Permits increased by 2.1 percent to a seasonally adjusted annual rate of 1,241,000 units from 1,216,000 units (revised from 1,220,000 units) in May. This leaves the permitting rate down 2.5 percent from the 1,273,000 level of June 2019. Analysts had been looking for a significantly higher number. Those polled by Econoday had a census of 1,298,000 units with a range of 1,150,000 to 1,340,000. Single family permits jumped 11.8 percent to 834,000 units compared to 746,000 the prior month but those permits are also lower than a year earlier, by 1.1 percent. Multifamily permits were down 14.0 percent and 4.2 percent from the two earlier periods at a rate of 368,000 units.

   

• Focus on the Right Things

  There’s so much going on in the mortgage and real estate industry today. Let’s try to stay focused on the prize – doing good business. Today’s show is brought to you by:

  The post Focus on the Right Things appeared first on National Real Estate Post.

• House Committee Looks at Mortgage Servicer Response to Pandemic

  The House Financial Service Committee's Subcommittee on Oversight and Investigations held a hearing on Thursday entitled, "Protecting Homeowners During the Pandemic: Oversight of Mortgage Servicers' Implementation of the CARES Act." Scheduled witnesses were Alys Cohen, staff attorney, National Consumer Law Center; Marcia Griffin, Founder and President, HomeFree-USA; Donnell Williams, President, National Association of Real Estate Brokers; and Ed DeMarco, President, Housing Policy Council and former acting director of the Federal Housing Finance Agency (FHFA).

  The subcommittee's memorandum lays out some of the issues the hearing is designed to air concerning the servicer industry's response to the CARES (Coronavirus Aid, Relief, and Economic Security Act. Cares was enacted on March 27, 2020, in part to provide protections for homeowners facing economic hardships due to the pandemic.

  As of the mid-June, nearly 33 million people claimed unemployment benefits compared to 1.6 million a year earlier, and at the end of May 7.76 percent of mortgages were a month or more past due. While the protections in the CARES Act do not cover all residential mortgages in the United States, federally backed mortgages represent about 70 percent of outstanding single-family mortgages and increase opportunities for homeownership among low- and moderate- income borrowers. As of June 28, 8.39 percent of all mortgages in mortgage servicers' portfolios, were in forbearance.

• Forbearance Plan Numbers at Lowest Levels Since May

  There was another decline in forbearance starts this past week and the number of loans in active plans also fell for the third straight week. Black Knight's weekly report on COVID-19 related forbearances reported a total of 4.12 million loans that have been granted forbearance, allowing borrowers to omit or reduce mortgage payments due to financial impacts related to the pandemic. The total is down 27,000 loans compared to the previous week and beings the share of these loans down to 7.77 percent from 7.82 percent of total servicer portfolios.  This is the lowest rate since the peak in late May. The loans account for $900 billion in unpaid mortgage balances.

   

• Average FICO Scores Rise 9 Points Since March

  The interest rates on mortgage loans that closed in June averaged 3.40 percent, down 3 basis points from the average in May according to Ellie Mae's Origination Insight Report. The rate for 30-year conventional loans was 3.42 percent compared to 3.44 percent the previous month and there were declines of 4 basis points for both FHA and VA loans to 3.41 percent and 3.20 percent, respectively. The share of purchase loans moved substantially higher during the month, from 35 percent to 42 percent, causing a corresponding drop in the refinance share from 65 percent to 58 percent. The distribution of loans also shifted slightly; the conventional loan share dipped to 80 percent from 82 percent with the VA and FHA each picking up 1 percentage point to 7 and 10 percent.

   

• Home Buying Interest Picks Up

  Today’s show is brought to you by:

  The post Home Buying Interest Picks Up appeared first on National Real Estate Post.

• New Home Sales Expected to Surge

  The Mortgage Bankers Association (MBA) is expecting new home sales to spike again in June, based on results of its Builder Application Survey (BAS). That survey shows that mortgage applications for new home purchases were up 20 percent from May and 54.1 percent compared to a year ago. The data does not include any adjustment for typical seasonal patterns.

  Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting said, "The new home purchase market continues to recover - applications surged 20 percent in June, and although this is not adjusted for seasonal impacts, it is another piece of data indicating that homebuying activity that was delayed by the pandemic in March and April is just being realized later in the season. The fact that applications are up over 50 percent from last June further reinforces that point.

• Another Massive Jump in Builder Confidence

  Economists talk about the potential for a V shaped recovery from the pandemic and that is exactly the pattern displayed by the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The HMI, a measure of builder confidence in the market for newly constructed homes, rose 14 points this month, completing the upward leg of the V and returning to its pre-pandemic March reading of 72. The index had plummeted 42 points in April before staging a three-month comeback. Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

   

• Pick up the Fight – Lose the Harvest.

  From Brian Stevens You know there’s a segment of the mortgage industry that has become a mirror of society. Everyone at everyone’s throat. Now I’ve gotten caught up in this. I felt like I had to add my voice and opinion to the fray. There’s been a lot of folks who supported me and a […]

  The post Pick up the Fight – Lose the Harvest. appeared first on National Real Estate Post.

• Forecasters See Surprisingly Strong Housing Rebound, But There Are Risks

  The reopening of the economy in several states from the COVID-19 shutdowns has moved Fannie Mae's Economic and Strategic Research (ESR) Group to raise its estimate for the 2020 full year GDP from the 5.4 percent decline it predicted in June to a 4.2 percent downturn. The economists say this improvement is almost entirely due to a stronger pace of recovery than they had anticipated. They caution that the current surge of cases in many areas will drag on growth in the future, however, they expect any future shutdowns and behavioral changes will be less severe than in the first round. Furthermore, given that consumer spending is still down, future behavioral responses will likely translate into only a drag on growth rather than a sharp decline, as occurred in the early spring.

• Mortgage Application Volume is Up, Forbearances Continue to Wane

  Mortgage application volume increased last week, bouncing back slightly from the prior holiday shortened period. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of volume, gained 5.1 percent on a seasonally adjusted basis during the week ended July 10 and was 16 percent higher before adjustment. The volume during the week ended July 3 was adjusted to account for the Independence Day holiday. The Refinance Index increased 12 percent from the previous week and was 107 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 64.2 percent of total applications from 60.1 percent the previous week. The seasonally adjusted Purchase Index declined by 6 percent but was 5 percent higher unadjusted than during the prior week and 16 percent higher than the same week in 2019.

   

• Delinquencies Spike in April as Pandemic Data Rolls In

  April's data is here, and CoreLogic is reporting that early stage delinquencies, that is mortgages 30 to 59 days past due, soared to levels even higher than those seen in the Great Recession. That delinquency bucket now contains 4.2 percent of active mortgages, up from 1.7 percent in April 2019. Further, the company's Loan Performance Report says the share of mortgages that transitioned from current to past due reached the highest level in at least 21 years, 3.4 percent, exceeding any statistics from the Great Recession. In January 2007, just before the start of the financial crisis, the current- to 30-day transition rate was 1.2 percent and it peaked in November 2008 at 2 percent. The company notes that prior to the COVID-19 pandemic, the nation's overall delinquency rate had declined for 27 consecutive months, and serious delinquency and foreclosure rates stood at record lows. However, the business closures and stay-at-home orders pushed unemployment rates to the highest level in more than 80 years in April, reducing affected homeowners' ability to make monthly mortgage payments.

   

• Hot COVID Market Cooling Off?

  The COVID-19 Corona virus has had a huge negative effect on employment, but it’s been pretty much gangbusters for the real estate and mortgage industry. Are we seeing a shift? Today’s show is brought to you by:

  The post Hot COVID Market Cooling Off? appeared first on National Real Estate Post.

• Sure, Rates Are Low, But It's Getting Harder to Get a Loan

  Credit tightening is becoming more evident according to the Mortgage Bankers Association (MBA). Its Mortgage Credit Availability Index fell to a reading of 125.0 in June, a loss of 3.3 percent. A decline in the index indicates stricter lending standards.

  Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting explained. "Mortgage credit supply dropped again in June, as investors further reduced their willingness to purchase jumbo loans and those with lower credit scores. Lenders are navigating a gradual economic and housing market recovery that is still facing headwinds from the ongoing COVID-19 pandemic. The overall credit availability index decreased 3.3 percent to its lowest level since April 2014, with all of the sub-indexes falling to lows not seen since 2014-2015."

• Biggest Drop yet in Forbearances Brings us Back to April's Levels

  Black Knight's weekly report on the numbers of mortgage loans in COVID-19 forbearance plans shows that a decline in those numbers of nearly a half million last week. More than 435,000 homeowners exited the plans, the largest drop yet. As of July 7, 4.14 million homeowners were in the plans which allow them to skip or reduce their mortgage payments if they are suffering financial problems due to the pandemic. This represents 7.8 percent of mortgage lenders and just under $900 billion in unpaid principal. This is the smallest number of plans since April 28. Some 6.0 percent of all GSE-backed loans, 1,678,000 in number, and 11.6 percent of all FHA/VA loans (1,399,000) are currently in forbearance plans. Another 1,067,000 or 8.2 percent of loans in private label securities or banks' portfolios are included in the total.

   

• Quicken Loans Files for IPO

  Quicken Loans has filed their paperwork for their IPO under the name Rocket Companies. Are you going to buy some stock?

  The post Quicken Loans Files for IPO appeared first on National Real Estate Post.

• Housing Market Confidence Continues to Bounce Back

  Fannie Mae's Home Purchase Sentiment Index (HPSI) continued to rebound last month from its sharp retreat to near record lows in the Spring. The Index, based on selected responses to the company's National Housing Survey (NHS) fell an aggregate 29.5 points in March and April, in reaction to the COVID-19 crisis. It added back 4.5 points in May and gained another 9 points in June.

  The Index is now at 76.5, with four of the six survey components used in the index moving higher. The HPSI however, is still down 15 points from its level in June 2019.

• Realtors Report that their Customers are Back

  A new survey by the National Association of Realtors® (NAR) has found that the vast majority of its members feel as though their businesses are back on track. NAR says, "After enduring months of setbacks brought on by the coronavirus pandemic...more than nine in 10 members believe they are in the process of recovering as many states start to reopen their economies." Ninety-two percent of the residential and commercial Realtors who responded to the 2020 Market Recovery Survey said that at least a portion of their buyers are back and of those, 18 percent said they never left. Nine percent said all of their buyers had returned with agents in small towns and rural areas more likely to report either no interruption in activity or a more robust return of buyers to the market.

   

• Fed Says Forbearance Spike Inevitable

  The forbearance train hasn’t come to a stop just quite yet. In fact, the Fed is predicting another spike and the virus continues prevail throughout the country. What’s it all mean to us in the field? Tune in and see! Today’s show brought to you by:

  The post Fed Says Forbearance Spike Inevitable appeared first on National Real Estate Post.

• Study Shows Low Housing Supply Leads to Gentrification

  A study by the Urban Institute (UI) has found a strong correlation between the home price to income ratio in an area and its rate of gentrification. The results are published on UI's Urban Wire blog in a post written by analysts Ellen Seidman, Jun Zhu, and Laurie Goodman. The authors say it is important to understand what increases the pace of gentrification, which they define as how fast high-income homebuyers move into low-income neighborhoods. Using data from the 2018 Home Mortgage Disclosure Act and 2018 American Community Survey data, the researchers examined the movement of high-income borrowers into low-income areas and the varying pace of this movement across different metropolitan statistical areas (MSAs). The focus was on income rather than homebuyers' race or ethnicity as that data was not available with sufficient granularity.

   

   

   

• Mortgage Application Volume Recovers its Momentum

  Mortgage application volume bounced back into positive territory last week, even though banks and many businesses were closed on Friday for the Independence Day Holiday. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, was 2.2 percent higher on a seasonally adjusted basis, which included an adjustment for the holiday, from the previous week, although volume was down 8 percent before adjustment. The Refinance Index rose 0.4 percent week-over-week and was 111 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 60.1 percent of total applications from 61.2 percent the previous week. The seasonally adjusted Purchase Index gained 5 percent week-over-week while declining by the same amount before adjustment. It was up 33 percent compared to the same week in 2019.

   

• Instant Instagram Listing Photo’s Now in Listing Booster

  Brian is coming home from Washington State today and I’m (Frank) out of town taking care of some family business, so, since we have a another new feature in Listing Booster and there is a big price change coming up on the 13th of this month, I thought I’d let you know what it is […]

  The post Instant Instagram Listing Photo’s Now in Listing Booster appeared first on National Real Estate Post.

• More Covid Data Rolls in, Are Refis Here to Stay?

  Black Knight has again taken a look at the number of Americans who could benefit significantly from refinancing their first mortgages, but the facts are shifting almost faster than they can report them. In its current Mortgage Monitor, the company reports that 90 percent of homeowners who have sufficient equity in their homes and the qualifying credit to refinance could improve their current interest rate. Sufficient, or what the company calls "tappable" equity is defined as allowing a refinance while keeping the loan-to-value (LTV) ratio at 80 percent or lower. That equity rose 8.0 percent from the first quarter of 2019 to the same quarter this year. The total is a record high of $6.5 trillion. Despite rising mortgage delinquencies, about 13.6 million homeowners still meet broad eligibility requirements to refinance. Refinance candidates are those who could lower their mortgage interest rate by 75 basis points or more. Mortgage rates as of June 18 were at a record low of 3.13 percent. At those rates, the 13.6 million refinance candidates could save an average of $283 per month on their mortgage payment. If all eligible candidates were to refinance their mortgages, they would see an aggregate savings of $3.9 billion per month, representing a potentially significant and much-needed stimulus to the economy. Of these, some 4.6 million could save at least $300 per month on their mortgage payments, while 2.6 million would be able to save at least $400 per month. More than three quarters of those refinancible homeowners have rates above 3.5 percent.

   

• Construction Spending Showing Promise

  Despite any impact from the COVID-19 pandemic, construction spending is still largely managing to stay ahead of its 2019 levels. The U.S. Census Bureau said total spending in May was at a seasonally adjusted annual rate of  $1.356 trillion, down 2.1 percent from April's $1.386 trillion rate. The April rate was revised significantly higher from the $1.346 trillion originally reported. On an annual basis, spending was 0.3 percent above the level in May of 2019.

  On a non-adjusted basis, total spending was $116.215 billion compared to $112.912 billion in April. For the year-to-date (YTD) spending is up 5.7 percent over the same period last year at $543.181 billion compared to $513.705 billion. Unadjusted spending has increased each month this year after starting at $101.121 billion in January.

• 2021 Could See First Decline in Home Prices in 9 Years

  Did the housing happy talk just get a little less so? CoreLogic's Housing Price Index Forecast (HPI) over the May 2020 to May 2021 window is seeing more rapid price deceleration in the face of the COVID-19 situation than did their previous 12-month forecast that ended in April of next year. In its report last month CoreLogic said it expected that "the housing market may be equipped to lead the broader economy through the recovery" but that home prices increases would slow and that the gain from April to May would be only 0.3 percent. They went on to predict that 2021 would bring the first decline in nine years, and by April 2021 the national price gain would turn negative, down 1.3 percent.

   

• Rates & Real Estate with Barry Habib 07/06/2020

  Today we talk to Barry Habib on what to look for this week with respect to rates, and we also talk about what’s going on with housing. So tune in and there’s great information on today’s show that’s very “sharable” with your database and sphere of influence. Have an awesome week guys! Today’s show is […]

  The post Rates & Real Estate with Barry Habib 07/06/2020 appeared first on National Real Estate Post.

• Freddie Mac's Growth Slowed, Delinquencies Spiked in May

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 5.5 percent in May compared to a 14.3 percent gain in April. The portfolio balance at the end of the period was $2.407 trillion compared to $2.396 trillion at the end of April and $2.230 trillion a year earlier. The growth rate for the year to date is 7.8 percent. Purchases and Issuances totaled $78,329 billion and Sales were ($2.799) billion. The April numbers were $80,879 billion and ($0.770) billion, respectively. Single-family refinance loan purchase and guarantee volume was $54.500 billion in May compared to $52.100 billion in April and representing a 76 percent share of total single-family mortgage portfolio purchases and issuances compared to 69 percent the previous month.

   

• CFPB Proposes New Escrow Rule

  The Consumer Financial Protection Bureau (Bureau) today issued a notice of proposed rulemaking (NPRM) that would amend Regulation Z of the Truth-in-Lending (TIL) Act. The rule would provide a new exemption for some insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs).  Under Regulation Z, some insured depository institutions and credit unions are required to set up escrow accounts for specified higher-priced mortgage loans (HPMLs). These are closed-end residential loan transactions with an annual percentage rate that exceeds the current average prime offer rate for a comparable transaction by specific amounts. In setting up this escrow requirement, the 2008 Dodd-Frank Act generally adopted a similar rule the Federal Reserve had made in 2005 specifically targeting subprime loans. However Dodd-Frank excluded certain loans, such as reverse mortgages, from the escrow requirement and gave the Consumer Financial Protection Bureau (CRPF), which had rule-making authority, permission to exempt smaller creditors and those operating "predominantly" in rural or underserved areas.

• Forbearance Plans Resume Downtrend After Last Week's Uptick

  The number of homeowners in COVID-19 forbearance dropped sharply this week, to the lowest level since the first week of May. The number of plans which hit a peak on May 22 then declined slowly over the next three weeks but shot up by nearly 80,000 loan plans during the week ended June 23. Black Knight's survey of mortgage loan servicers found a resumption of the downward trend this week, with plans falling by 104,000, the largest decline so far. As of June 30, there were 4.58 million homeowners in forbearance due to pandemic related financial problems, down 183,000 from the peak. This is 8.6 of the nation's active mortgages, compared to 8.8 last week and represents $995 billion in unpaid principal.

   

• David Stevens on CFPB Ruling

  Today we interview David Stevens, CEO of Mountain Lake Consulting, about the recent ruling that the CFBP’s structure is unconstitutional. David Stevens has quite the resume and his insights are very valuable. Today’s interview is quite informative. Today’s show is brought to you by:

  The post David Stevens on CFPB Ruling appeared first on National Real Estate Post.

• CFPB Officially Unconstitutional

  Well if you haven’t heard yet, the CFPB has been deemed unconstitutional. There are news outlets reporting this everywhere right now. For the sake of this article I’ll be referencing an article by National Mortgage News titled: “After ruling, stage set for new battles over CFPB’s future.” Today’s show is brought to you by: Here’s […]

  The post CFPB Officially Unconstitutional appeared first on National Real Estate Post.

• Purchase Apps Retreat Again as Inventory Dries Up

  Applications for both refinancing and purchase mortgages retreated last week, pulling the Mortgage Bankers Associations (MBA's) Market Composite Index lower for the second time in as many weeks. MBA said the index, a measure of application volume, declined by 1.8 percent on a seasonally adjusted basis during the week ended June 26 and was down 2.0 percent on an unadjusted basis. While the Refinance Index ticked down 2 percent from the week ended June 19, low interest rates kept the refinancing volume 74 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 61.2 percent of total applications from 61.3 percent the previous week. The seasonally adjusted Purchase Index dipped 1 percent and the unadjusted version was down 2 percent compared with the previous week. Volume was still 15 percent higher than the same week one year ago.

   

• Affordable Homes Not So Affordable During Pandemic

  I was scanning our home page yesterday and I came across an interesting article written by Ryan Smith with Mortgage Professional America that was titled “Prices for affordable homes spike during pandemic”. The reason it caught my eye is that I’m hearing from a lot of people out there, who are NOT in the mortgage […]

  The post Affordable Homes Not So Affordable During Pandemic appeared first on National Real Estate Post.

• Supreme Court Rules Single CFPB Director Unconstitutional

  The Supreme Court, in a 5-4 decision along partisan lines, took a chunk out of the intentions the Dodd-Frank Act had for the Consumer Financial Protection Bureau (CFPB) when it created it. The court ruled that the single-director structure of the agency is unconstitutional as is its limits on the President's ability to replace its occupant.

  When Congress established CFPB it set up its funding mechanism independent of the House appropriations process, ruling its budget should come from the Federal Reserve. It also established a single director to head the agency and protected the occupant from being fired except for "inefficiency, neglect of duty or malfeasance in office" during a five-year term,  Each stricture was a bid to insulate the agency from political interference.

• Home Prices "Remarkably Stable" in April

  Home prices continued to hold up on a national basis in April. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, reported a 4.7 percent annual gain in April, up from 4.6 percent in March. The National Index posted a 1.1 percent month-over-month increase before seasonal adjustment and an 0.5 percent gain after it. The 10-City Composite appreciated at an annual rate of 3.4 percent, unchanged from the March rate while the 20-City Composite's annual increase rose to 4.0 percent from 3.9 percent the previous month. The 10-City and 20-City measures had monthly increases of 0.7 percent and 0.9 percent respectively before seasonal adjustment and both posted 0.3 percent increases after adjustment. In April, all 19 cities (excluding Detroit for which sufficient data was not available due to a county recording office shutdown) reported increases before seasonal adjustment. Sixteen of the 19 cities reported them afterward.

   

• Listing Booster Mobile App Released

  We’ve released our video walk-thru mobile app for Listing Booster over the weekend. It allows you to produce a very simple video walk-thru of your (or your agent’s) listing using your smart phone and it’s available in both the Android and iOS app stores now. It allows you up to 6 minutes to complete a […]

  The post Listing Booster Mobile App Released appeared first on National Real Estate Post.

• Record Surge in Pending Home Sales

  Lawrence Yun, chief economist for the National Association of Realtors® (NAR), predicted last month that April's home sales contract activity "will be the lowest point for pending sales."  That turns out to have been a huge understatement--at least for now.

  This morning's release of NAR's Pending Home Sales Index (PHSI) showed the number of those contracts for purchasing existing single-family houses, condos, townhomes, and cooperative apartments did indeed explode in May, soaring by 44.3 percent to 99.6. It was the greatest single month increase since NAR started tracking pending sales in 2001. Every major region recorded an increase in month-over-month activity, while the South also had a year-over-year increase in pending transactions.

• How to Deal with High Volume and COVID-19

  Today we interview one of the top originators in the country, Gregg Pechmann, to find out how he handles high volume in our current market conditions.

  The post How to Deal with High Volume and COVID-19 appeared first on National Real Estate Post.

• Forbearance is Major Cause of Lender Overlays

  In his analysis of current mortgage credit tightening for the Joint Center on Housing Studies excerpted here earlier, Don Layton included a special section on lender overlays. The former Freddie Mac CEO focused specifically on how those overlays may be affected by the borrower forbearance mandated by the  CAREs Act for borrowers impacted financially by the COVIC-19 pandemic.

  During and after the 2008 housing crisis mortgage intermediaries (originators) added their own underwriting requirements to those required by the GSEs, FHA, and the VA. These overlays were designed to counter "representation and warranty risk," - i.e., the possibility they would be required to...
• Surge in Forbearances This Week

  After three weeks of declining totals, Black Knight says the number of active COVID-19 forbearance plans shot up over the past week. As of June 23, there were 4.68 million homeowners in forbearance, an increase of 79,000 from the prior week. This surge erased about half of the improvement the company has noted in its weekly report since forbearance plans peaked during the week of May 22. Forbearance plans are now in place for 8.8 percent of all active mortgages, up 0.1 point in a week. These loans have an aggregate balance of $1.025 trillion. FHA and VA loans posted the largest increase, 42,000, bringing the total number of forborne loans to 1.925 million or 12.5 percent of the two portfolios. Among loans serviced for Fannie Mae and Freddie Mac, 1.925 million or 6.9 percent are in plans, up 25,000 from the prior week. 

• How to go from Local to National

  Are you thinking too small in this modern world we live in? Maybe so. Today we see how one of our friends, Amy Parry, was able to go from local to National.

  The post How to go from Local to National appeared first on National Real Estate Post.

• Keep GSE’s in Conservatorship?

  Today we interview David Stevens which brings us to the question of leaving the GSE’s in conservatorship. What are your thoughts? Let us know in the comments below.

  The post Keep GSE’s in Conservatorship? appeared first on National Real Estate Post.

• April New Home Sales Surge, Rising Over 16%

  After its pandemic-related plunge in April, the rapid recovery of the Housing Market Index, a measure of builder confidence, seems justified by today's Census Bureau report on new home sales. For the second month in a row, sales of newly constructed homes outdistanced expectations, rising by 16.6 percent to a seasonally adjusted annual rate of 676,000 units. However, the original April estimate of 623,000 units was revised down drastically to 580,000. This month's surge did exceed last May's 580,000 unit rate by 12.7 percent, but it seems that this data is more susceptible to revision in the current environment than in more normal times. Sales exceeded the upper limits of analysts predictions, which in the case of those polled by Econoday ranged from 600,000 to 670,000 units. The consensus was a rate of 630,000-units.

   

• Amazing Winning Streak For Home Purchase Applications Finally Levels Off

  The nine-week string of increases in purchase mortgage applications came to an end last week and refinancing volume pulled back as well. Consequently, the Mortgage Bankers Association's (MBA's) Market Composite Index, a measure of overall application volume during the week ended June 19 dropped significantly, down 8.7 percent on a seasonally adjusted basis. The index was 9.0 percent lower before adjustment. The seasonally adjusted Purchase Index decreased 3.0 percent from one week earlier. The unadjusted Purchase Index fell by 4.0 percent but was still up 18.0 percent compared to the same week in 2019. The Refinance Index dropped 12 percent from the previous week and was 76 percent higher than the same week one year ago. Applications for refinancing represented 61.3 percent of the total compared to 63.2 percent the previous week.

   

   

• Home Price Gains Defied The Odds in April

  House prices continued to be unfazed by the current economic upheaval. The Federal Housing Finance Agency (FHFA) reports that its U.S. House Price Index for April, the first full month that reflects the impact of the pandemic, continued to rise almost unabated. The index increased by 0.2 percent from March compared to a 0.1 percent increase from February to March. On an annual basis the index rose 5.5 percent, down slightly from the 5.7 percent gain in both February and March. Prices did decline from March in two of the nine census divisions, New England was down 0.2 percent and the South Atlantic was off by 0.5 percent. The index in both the Pacific and Mountain regions were unchanged. Gains elsewhere were topped by an 0.8 percent increase in the West South Central division. The 12-month changes were all positive, ranging from 5.0 percent in the Middle Atlantic division to 6.8 percent in the Mountain division.

   

• CFPB to Eliminate DTI From QM

  We have no idea how this is going to work, but it looks like the CFPB is proposing to drop DTI as a QM requirement and now initiate a new APR comparison in it’s place? How APR and DTI are interchangeable we don’t know. Today Frank interviews Ryan Hills of The RESource to get his […]

  The post CFPB to Eliminate DTI From QM appeared first on National Real Estate Post.

• May's Poor Existing Sales Show the Effects of Lockdown

  Existing-home sales fell again in May, although only at a little more than half the rate of decline in April. Still, it marked the third month of falling sales as a result of the coronavirus outbreak. The National Association of Realtors® (NAR) said sales of previously owned single-family houses, townhomes, condos, and cooperative apartments sold at an annual rate of 3.91 million units during the month, a month-over-month decline of 9.7 percent. Existing home sales are now 26.6 percent lower than in May of 2019 when the annual rate was 5.33 million units. Sales have seen an aggregate decline over the last three months of 36.0 percent. The annual rate was below the mid-range of predictions from analysts polled by Econoday. They had a consensus forecast of 4.39 million units within a range of 3.50 to 4.95 million.

   

• Mortgage Programs Drying Up Like 2008, But For Completely Different Reasons

  A paper written for the Joint Center on Housing Studies at Harvard University focuses on the causes and effects of mortgage credit tightening in the current COVID-crisis. The author, Don Layton, is a former CEO of Freddie Mac and a Senior Industry Fellow at the Center. One of the biggest pandemic-related issues to emerge in housing finance is the availability of credit. Tightening is being discussed as a major problem, perhaps on a par with the last financial crisis. The implication seems to be that much if not all of that tightening is illegitimate, a failure of government policy that could be avoided with the right actions that do not require subsidies for small business or specific industries. Layton questions this view and examines how mortgages are made today and who sets the credit standards.   The complex structure of mortgage financing that has emerged over the last 60 years has three key impacts that are related to and must be taken into account when trying to reduce unnecessary credit tightening. First, strong stress liquidity is due solely to government support. Second, government agencies are now arbiters of acceptable credit, and third, intermediaries have become a major market force. Further, he says only one of these was clearly intended by the original policymakers.

   

• CFPB Looks at Changing Qualified Mortgage Rule, Lifting DTI Limits

  With its so-called GSE Patch set to expire on January 10, 2021 (unless by some miracle the conservatorship of Fannie Mae and Freddie Mac (the GSEs) ends earlier), the Consumer Financial Protection Agency (CFPB) has issued two proposed amendments to the Ability to Repay/Qualified Mortgage Rule (ATR-QM Rule).  The ATR-QM Rule provides a safe harbor that protects lenders from lawsuits charging lenders for failing to appropriately quality a borrower's repayment ability. In general, the QM rule requires that a loan comply with prohibitions on certain loan features, points and fee limitations. It also requires that a borrower's a debt-to-income (DTI) ratio does not exceed 43 percent and that creditors "calculate, consider, and verify debt and income for purposes of determining the consumer's DTI ratio using the standards contained in Appendix Q of Regulation Z."  

   

• 06/21/2020 Mortgage Brokers Push for Deductions

  Congress took that away from most employees to pay for other parts of the 2017 Tax Cuts and Jobs Act! Many Loan Originators act like independent contractors and should have the ability to deduct expenses for advertisements and other promotional items. Please ask Congress to help small business Loan Originators by permitting them to be […]

  The post 06/21/2020 Mortgage Brokers Push for Deductions appeared first on National Real Estate Post.

• 06/22/2020 Using Tik Tok as an Agent or MLO

  Tik Tok is a relatively new social media platform that revolves around very short videos. And, like most new social media platforms, it’s got a bunch of kids using it, but, like most new social media platforms, boomers and business are taking it over. Learn more about Tik Tok today with Jeff Pfitzer. Contact Jeff […]

  The post 06/22/2020 Using Tik Tok as an Agent or MLO appeared first on National Real Estate Post.

• Delinquencies at Nine-Year High

  Black Knight reports another breathtaking increase in mortgage delinquencies in its "first look" at May loan performance data. The rate, which soared by 90 percent in April, grew another 20.4 percent, to 7.76 percent of all active mortgages. This puts the rate, which had been declining continually to near all-time lows before the impact of the COVID-19 pandemic, up by 130.8 points from May 2019. This is the highest delinquency rate since late 2011. There was a total of 4.123 million loans that were 30 days or more past due in May, 723,000 more than in April and 2.36 million more than a year earlier. It this includes loans that were in a forbearance plan and did not make a May payment but does not include loans in foreclosure. Under provisions of the CARES Act, loans in forbearance that miss payments are not reported to the credit bureaus. Black Knight notes that the May increase was less than half the number of borrowers who transitioned from current to non-current in April, 1.6 million.

   

• Saturday with Barry Habib 06/20/2020

  Happy Saturday everyone! Today Barry Habib reviews what happened in the real estate and mortgage industry last week, and then we talk about what to look for next week. So sit back and relax and take in some good MBS mojo. If you want to try MBS Highway for a couple of weeks for free, […]

  The post Saturday with Barry Habib 06/20/2020 appeared first on National Real Estate Post.

• 06/19/2020 Lowest Rates Since 1971

  Do you remember 1971? Well apparently interest rates were crazy low. Let’s take a minute to look at what else was going on in 1971 shall we? Today’s show is brought to you by:

  The post 06/19/2020 Lowest Rates Since 1971 appeared first on National Real Estate Post.

• Conventional Loans Stealing Market Share

  The dominance of conventional lending continued to grow in May. Ellie Mae's Origination Insight Report says those loans made up 82 percent of originations during the month, up from 81 percent in April and 70 percent at the end of 2019. The FHA share has shrunk from 17 percent to 9 percent over that period and VA loans had a 6 percent share, down from 9 percent. The company's reports that the interest rate on all loans closed in May averaged 3.43 percent, down from 3.48 percent in April. The conventional 30-year rate averaged 3.44 percent, down 4 basis points, and the FHA and VA rates dropped 9 basis points and 7 basis points to 3.45 percent and 3.24 percent, respectively. As rates dropped, the percentage of refinances held steady at 65 percent of closed loans in May. The VA share of purchase loans, however, jumped from 69 to 75 percent.

   

• Forbearance Numbers Continue to Retreat

  The number of homeowners in active forbearance plans fell again this past week. Black Knight estimates there are now 4.6 million people remaining in the plans which mortgage servicers are required to provide as part of the CARES Act package of COVID-19 economic relief. Those plans allow homeowners who claim a financial impact from the pandemic to temporarily skip or make partial mortgage payments. The June 16 count represents 8.7 percent of all active mortgages, down by 57,000 and 0.1 percentage point from the previous week. It is 158,000 fewer plans than at the peak during the week of May 22. The current plans represent just over $1 trillion in unpaid principal ($1,012 billion). Some 6.8 percent of all GSE-backed loans and 12.1 percent of all FHA/VA loans are currently in plans.

   

• Housingwire CEO Housing Outlook

  Today we interview Housingwire CEO Clayton Collins, and his perspective on our housing market.

  The post Housingwire CEO Housing Outlook appeared first on National Real Estate Post.

• 06/18/2020 Welcome to the Best Real Estate Day EVER!

  It’s rare to find nothing but good news for the real estate and mortgage industry, but it appears that yesterday was indeed – That DAY!

  The post 06/18/2020 Welcome to the Best Real Estate Day EVER! appeared first on National Real Estate Post.

• CFPB Attempts to Clarify Servicer Credit Reporting Requirements

  There has apparently been considerable confusion regarding servicer obligations to report to credit agencies regarding loans in forbearance. The original guidance issued to servicers by the GSEs Fannie Mae and Freddie Mac in mid-March regarding the COVID-19 emergency instructed them "to suspend reporting the status of a mortgage loan to credit bureaus during an active forbearance plan, or a repayment plan or Trial Period Plan where the borrower is making the required payments as agreed, even though payments are past due, as long as the delinquency is related to a hardship resulting from COVID-19."

• Freddie Says Economic Stimulus Softened Pandemic's Impact

  Freddie Mac's Economic and Housing Research Group says say that, heading into summer, the housing market is rebounding from the COVID-19 pandemic's damage faster than expected. Purchase demand is recovering, and any home price response has, so far, been muted. Still, the company's quarterly forecast is much more uncertain than usual. The report credits the government's stimulus with cushioning the pandemic's impact on consumers in the short term, however, there has still been tremendous damage to the labor market and to small businesses. The extent of that impact is still unfolding.

   

• Regulator Seeks Authority to Charter Fannie/Freddie Competitors

  The Federal Housing Finance Agency (FHFA) released its annual Report to Congress for 2019 on Monday. The report summarizes the FHFA's activities as regulator of the Federal Home Loan Banks (FHLBanks) and as both regulator and conservator of the GSEs Fannie Mae and Freddie Mac. The report addresses how FHFA has fulfilled its statutory responsibilities, the financial condition of the GSEs and FHLBanks, and details the agency's response in 2020 to the COVID-19 outbreak. FHFA Director Mark Calabria again called on Congress to reform the nation's housing  financing system, saying that only legislative action can address the flaws that were at the root of the 2008 financial crisis and continue to pose risks to taxpayers and financial stability.  He said, "There are critical vulnerabilities in our housing finance system that put taxpayers and our housing market at risk. The financial stress on our mortgage markets caused by the COVID-19 crisis is only the latest example."

• Purchase Applications Hit 11yr High, Refi Boom Continues

  Mortgage Application volumes continued to grow during the week ended June 12 as mortgage rates reached new lows and states allowed more businesses to reopen. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, increased 8.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index was up 7 percent compared with the previous week. The volume of refinancing applications moved higher for the second straight week. That index increased 10 percent compared to the week ended June 5 and was 106 percent higher than the same week one year ago. Refinancing accounted for 63.2 percent of application activity, up from 61.3 percent the prior week. The seasonally adjusted Purchase Index rose for the ninth time, a gain of 4 percent. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 21 percent higher than the same week one year ago.

• New Home Construction is Officially Picking Back Up

  Residential construction numbers climbed in May after their pandemic-driven collapse in April. The Census Bureau and the Department of Housing and Urban Development report that both permitting and starts rose during the month although completions fell. Permits for residential construction were authorized at a seasonally adjusted annual rate of 1,220,000, up 14.4 percent from the previous month. The 1,074,000 permitting rate originally reported for April was revised even lower to 1,066,000 and the rate is now down 8.8 percent compared to a year earlier. Analysts polled by Econoday had expected permits to be in the 1,000,000 to 1,300,000 range. Their consensus was 1,250,000.

   

• Real Estate Pushes Through Pandemic Issues

  The mortgage and real estate industry keeps pushing through the COVID pandemic. Although numbers are understandably down from last year, everything seems to be on the rise month over month. Today’s NREP Daily is brought to you by:

  The post Real Estate Pushes Through Pandemic Issues appeared first on National Real Estate Post.

• Builder Confidence Crushes Expectations

  The COVID-19 outbreak struck a major blow to builder confidence in April. The prospect of widespread shutdowns of businesses and prolonged shelter at home orders sent the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) spiraling down 42 points, its largest monthly change in a more than 30 year history, to a reading of 30. The index, a measure of home builder confidence in the market for new homes, recovered slightly in May, rising 7 points. This morning NAHB said, in a sign that housing stands poised to lead a post-pandemic economic recovery, its index soared 21 points to 58, now only 14 points below where it finished in March. Any reading above 50 indicates a positive market.

   

• 06/15/2020 Float with Caution from Barry Habib

  It’s a roller coaster out there! Float? Lock? What to do, what to do? Well, hopefully today’s show can shed some light on what you need to look out for. Try MBS Highway by CLICKING HERE for free! Today’s show is sponsored by:

  The post 06/15/2020 Float with Caution from Barry Habib appeared first on National Real Estate Post.

• Refi Surge Boosts Lender Sentiment

  The continued high volume of refinancing kept mortgage lenders' outlook for profits relatively high during the second quarter, although it was down slightly from the first quarter of the year. Fannie Mae's Mortgage Lender Sentiment survey found that more than half (52 percent) of lenders who responded believed that their profit margins would be higher than the prior quarter, while the remainder were almost equally divided between those who expected lower profits or that they would remain unchanged. The survey of senior mortgage executives was conducted between May 5, 2020 and May 18, 2020. The lender optimism was based largely on the demand for refinancing, which outweighed a perceived decline in mortgage demand. The net share of lenders reporting demand growth for refis over the prior three months remained strong for all loans types (GSE-eligible, non-GSE-eligible, and government) and reached a survey high for GSE-eligible loans. Demand growth expectations on net for the next three months fell from last quarter but remained high across all loan types. 

   

• Forbearances Drift Lower for Second Week in a Row

  The number of homeowners with mortgages in forbearance has fallen for the second consecutive week. Black Knight reports that, as of June 9, there were 4.66 million active COVID-19 related forbearance plans. This is 77,000 fewer than the previous week and down by 112,000 homeowners at the May 22 peak. The current number represents $1,03 billion in unpaid principal balances. Servicers now have 8.8 percent of their total portfolios in plans, down from 8.9 percent the previous week. This breaks down to 7.0 percent of all Fannie Mae and Freddie Mac (GSE) guaranteed mortgages and 12.2 percent of FHA/VA loans. Loans serviced for the GSEs saw the greatest reduction, with plans declining by 47,000 week-over-week to 1.95 million loans with an unpaid balance of $411 billion. The number of FHA/VA loans fell from 1,491 million to 1.478 million. After rising last week, the number of plans among those loans serviced for others (portfolio loans, private label securities) also declined, from 1,247 million to 1.232 million, 9.5 percent of those portfolios.

• More Home Flipping, Less Profit

  Home flipping, defined as buying a home and reselling it (in two arms-length transactions) within a year, accounted for 7.5 percent of all home sales in the first quarter of this year. The share in the prior quarter and the first quarter of 2019 was 6.3 percent and 7.3, respectively. It was the highest market share since the second quarter of 2006, when flips accounted for nearly 9 percent of sales. ATTOM Data Solutions says 53,705 single-family homes and condos qualified as flips during the quarter. At the prior peak in 2006 there were around 80,000 homes were considered flips. But the investors who are doing the flipping are seeing diminishing returns. Homes flipped in the first quarter of 2020 were sold for a median price of $232,000, with a gross flipping profit of $62,300 above the median purchase price of $169,700. Thus, the return on the original investment (ROI) was 36.7 percent versus 39.5 and 40.9 percent in the two earlier quarters. This was the lowest profit margin since the third quarter of 2011.

   

• 06/12/2020 Tackling Mortgage Trigger Leads

  You can be on both sides of the fence when it comes to mortgage trigger leads. It’s pretty much you’re in or you’re out. Where do you stand on it? If you’re against them and you feel the consumer should have the right to opt-in to trigger leads, click the NAMB banner below and complete […]

  The post 06/12/2020 Tackling Mortgage Trigger Leads appeared first on National Real Estate Post.

• Equity Cushion May Prevent Another Housing Crisis

  Home equity reports have not been particularly interesting over the last few years. Home prices kept rising, owners kept whittling down their loan-to-value (LTV) ratios and avoiding the serial cash-out refis we have seen in earlier boom times. With the current crisis, an equity buffer becomes pretty important. The narrow margins that allowed mortgaged homeowners to quickly plunge underwater when home values dropped in the Great Recession cost many their homes. Equity not only allows a homeowner more options - refinancing into a lower cost mortgage, flexibility in selling the house or in negotiating a loan modification - but also gives them an incentive to stay in the home. CoreLogic reports that home prices, as yet unaffected by the COVID-19 pandemic, continued to rise in the first quarter of 2020, pushing home equity higher. Nationwide, homeowners with a mortgage, roughly 63 percent of all homeowners, saw their equity increase by 6.5 percent since the first quarter of 2019, a $9,300 per household increase, and an aggregate of $590 billion nationally. States with the largest gains include Idaho, where in the first quarter equity grew by an average of $24,400, Washington, with an average of $20,800 and Arizona at $19,900.

   

   

• New Fed Program Helps Wealthy Companies

  So we go over a couple things today. We talk about Calabria again and his lack of concern for new forbearance’s. We “applaud” the NAR for lobbying Congress to help renters, and we question what the heck is up with this new Fed Program that’s seems to be a big win for mega companies out […]

  The post New Fed Program Helps Wealthy Companies appeared first on National Real Estate Post.

• 06/10/2020 Will Working Remotely Spur Home Sales?

  Could working from home allow employees working for companies in congested cities to buy homes in the suburbs? The thinking is YES.

  The post 06/10/2020 Will Working Remotely Spur Home Sales? appeared first on National Real Estate Post.

• Quarantines Lift, Mortgage Volume Explodes

  The Mortgage Bankers Association (MBA) says that mortgage application volume rose significantly during the week ended June 5 as many states began to lift restrictions on individuals and businesses imposed in response to the COVID-19 pandemic. MBA's Market Composite Index, a measure of mortgage loan application volume, increased 9.3 percent on a seasonally adjusted basis from one week earlier and was 20 percent higher on an unadjusted basis. Purchase applications continued upward, gaining 5 percent from the previous week on a seasonally adjusted basis, the eighth straight week of gains. The volume was up 15 percent before adjustment and was 13 percent higher than during the same week in 2019. The Refinance Index gained 11 percent compared to the previous week and was 80 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 61.3 percent of total applications from 59.5 percent the previous week.

• Credit Access Retreats Back to Six-Year Lows

  Lenders, responding to increasing unemployment rates and other risks, tightened lending standards in May, sending the Mortgage Bankers Association's (MBA's) Mortgage Credit Availability Index (MCAI) into a tailspin. The index dropped 3.1 percent to 129.3, the lowest level in six years. All four of the MCAI components moved lower, indicating tighter underwriting standards. The Conventional MCAI decreased 5.7 percent, while the Government MCAI decreased by 0.8 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 4.4 percent, and the Conforming MCAI fell by 6.9 percent.

   

• 06/09/2020 Time to Get a Bigger Cup

  Carl White has a great freebie for you (as usual) that will help you with everything you’re doing. It really is time to get a bigger cup. Tune in and see what we mean.

  The post 06/09/2020 Time to Get a Bigger Cup appeared first on National Real Estate Post.

• Loan Performance Showed Only Minimal Stress in March

  The strength of the housing industry at the end of 2019 and beginning of 2020 served, to a certain extent, as a buffer as the COVID-19 pandemic began to hit in March. However, CoreLogic says that there were still some signs that month that loan performance was beginning to fray. The company's March Loan Performance Insights Report says the share of mortgages that transitioned from current to 30 days past due reached its highest level since 2013 as unemployment began to rise. The transition rate increased to 1.0 percent from 0.9 percent in March 2019. In January 2007, just before the start of the financial crisis, the current- to 30-day transition rate was 1.2 percent and it peaked in November 2008 at 2 percent. CoreLogic says those effects will probably continue to become more apparent over the next year - especially as home prices are forecasted to experience their first decline in 9 years in 2021.  

   

• May Homebuying Sentiment Shows Signs of Recovery

  After falling an aggregate of 29.5 points in March and April, Fannie Mae says its Home Purchase Sentiment Index (HPSI) has begun to recover. The Index rose 4.5 points in May to 67.5 from an all-time survey low in April. Four of the six index components gained ground. Year over year, the HPSI is down 24.5 points. Consumers reported a somewhat more optimistic view of homebuying conditions and, to a lesser extent home-selling conditions, in their responses to the National Housing Survey upon which the index is based. Moreover, fewer consumers reported expectations that mortgage rates will go up over the next 12 months. The percentage of Americans who say it is a good time to buy a home increased from 48 percent to 52 percent, while the percentage who say it is a bad time to buy decreased from 46 percent to 39 percent. As a result, the net share of Americans who say it is a good time to buy increased 11 percentage points to 13 percent.

   

• 06/08/2020 – Broker Spotlight with Finance USA

  Finance USA Corp is very different in that they believe that all their LO’s should share in their success and their business. They have found a way to originate business that’s used to build relationships between their LO’s and the local real estate community. Very interesting. Connect with Simmy and Doug: Doug HofmeisterVP of Marketing703-981-8574dhofmeister@financeusa.usNMLS: […]

  The post 06/08/2020 – Broker Spotlight with Finance USA appeared first on National Real Estate Post.

• Black Knight Takes a Close Look at April's Historic Delinquency Rate

  Black Knight says that only three months after the national delinquency rate hit a record low, falling 1.5 percentage point below its pre-Great Recession average in January, it skyrocketed to 6.45 percent. This is a 3.1 percent change in April alone, the largest single-month increase on record and nearly triple the previous record, a November 2008 surge. During the Great Recession it took two years for the delinquency rate to increase this much and the company says it could climb still higher when the May numbers come in. Each of the 100 largest metro areas saw at least a 1-point increase in its delinquency rate, but there was a lot of variation. Non-current loans jumped by 7.2 percent in Miami and 6.2 percent in Las Vegas, each twice the national gain. Many of the increases in Midwest areas were well below the national average.

   

• CFPB Warns Servicers and Lenders to Adhere to CARES Act

  A joint release from the Consumer Financial Protection Bureau (CFPB) and the Conference of State Bank Supervisors cautions mortgage servicers about their obligations in complying with the Coronavirus Aid, Relief and Economic Security (CARES) Act. The Act includes provisions granting a right to forbearance to mortgaged homeowners impacted by the COVID-19 pandemic. Under these provisions, servicers of federally-backed mortgages including those from the GSEs Fannie Mae and Freddie Mac as well as FHA, the VA, and USDA must grant forbearance to borrowers with pandemic-related hardships for as long as two consecutive 180-day periods during the National Emergency declared in response to the outbreak.

   

• 06/05/2020 Check Out NAMB Shop Local – Very Cool

  NAMB has launched a “Shop Local” campaign that you can make use of in light of COVID-19 issues that have taken a huge toll on local businesses. The cool think is that you can easily make use of the marketing materials to support local businesses and get some referral business. Check it out by clicking […]

  The post 06/05/2020 Check Out NAMB Shop Local – Very Cool appeared first on National Real Estate Post.

• Pandemic's Disproportionate Effects on Housing Supply, Affordability

  The Urban Institute says that homes categorized as low priced, that is in the bottom 20 percent of the distribution, appreciated 126 percent between the turn of the century and the end of 2019. During that same 20-year period, those in the top 20 percent of the price distribution increased only 87 percent.

  An analysis of 285 metropolitan statistical areas (MSAs) by Jung Hyun Choi, John Walsh, and Laurie Goodman found that rapid employment growth combined with supply constraints from zoning and other regulations was one driver of this disproportionate price growth on the low end.

   

• 06/04/2020 What We Need is a Racket!

  The MBA has found a way to get just a few penny’s on literally every loan that gets done in the country. It’s for new software to help with the new way of doing things since COVID. Here’s the deal…. They approved it in October of last year?

  The post 06/04/2020 What We Need is a Racket! appeared first on National Real Estate Post.

• Home Ownership and the Racial Wealth Gap

  We are in absolutely no position to address what’s going on in the world right now.  Seems to us, we’d be better off if everyone just shut up for a day.  Take a break. Cool down a little. Then maybe we can have a conversation where we actually hear each other. 

  The post Home Ownership and the Racial Wealth Gap appeared first on National Real Estate Post.

• CoreLogic Expects 2021 to see First Home Price Decline in 9 Years

  CoreLogic's report on April home prices, the first for that month, says that despite fears that home prices would "bottom out like they did in the Great Recession," they continued to accelerate reaching their highest annual growth since August 2018.  The U.S. CoreLogic HPI was up 5.4 percent compared to April 2019, with gains in all states and rose 1.4 percent compared to the previous month. Purchase activity, particularly among millennials, bounced back in April as the economy began to open back up. Gains were also driven by low inventory of homes especially at the entry level. Those plummeted by 25 percent on average nationally.

   

• Falling Mortgage Rates Boost Purchase Apps 18% YoY

  Refinancing volume continued to slide but purchase mortgage activity partially compensated during the holiday shortened week that ended May 29. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 3.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, probably due to the holiday, the Index was down 14 percent. Refinancing slipped another 9 percent although it remained 137 percent higher than the same week one year ago. Over the last seven weeks the Refinancing Index has lost an aggregate of 30 percentage points. The refinance share of mortgage activity decreased to 59.5 percent of total applications from 62.6 percent the previous week.

   

• 06/02/2020 Offerpad Now Listing Homes for Sale

  Offerpad is now offering to “list” the home of a home seller rather than just buy it. What’s your thoughts on this? Oh, and buy the way, they’re charging between 5.5% & 6% commission to do it! CLICK HERE to see the Fannie Mae S/E Guidelines

  The post 06/02/2020 Offerpad Now Listing Homes for Sale appeared first on National Real Estate Post.

• UI Takes a Deep Dive Into May's Mortgage Market

  The Urban Institute (UI) releases a regular report, Housing Finance at a Glance, a "chartbook" loaded with charts and commentary on mortgage activity. Much of the May chartbook's material, is retrospective, reaching back as far as Q4 2019 where there is a time lag in data collection. Much of it, residential construction data, home price indices, negative equity reports, etc., has been covered by MND from original sources, but we have cherry-picked a few items that may have otherwise escaped your and our notice. The total value of the housing market, as outlined in the Federal Reserve's Flow of Fund Report has gradually increased since 2012, driven primarily by growing home equity. The Q4 2019 numbers show that while total home equity was steady this during that quarter at $19.7 trillion, mortgage debt outstanding grew slightly from $11.1 trillion in Q3 to $11.2 trillion in Q4, bringing the total value of the housing market to $30.9 trillion. This is 20.7 percent higher than the pre-crisis peak in 2006. Agency MBS account for 61.6 percent of the total mortgage debt outstanding, private-label securities make up 3.9 percent, and unsecuritized first liens 30.0 percent. Home equity loans comprise the remaining 4.5 percent of the total.

   

   

• Builder Incentives Kept April Home Sales Strong

  As was reported last week, new home sales in April were much, much better than expected. There may or may not be a cause and effect going on here, but two recent posts in the National Association of Home Builders' (NAHB's) Eye on Housing blog indicate that builders are at least trying to preserve some market momentum. While builder confidence cratered in April and housing starts declined, Rose Quint reports that there is anecdotal evidence that builders were lowering the prices of newly constructed homes in April and that more than half report making sales accommodations in May. The latest NAHB/Wells Fargo Housing Market Index (HMI) survey shows that about 22 percent of builders cut home prices in April 2020 in order to bolster sales and/or limit cancellations. Regionally, builders in the South (26 percent) and Midwest (23 percent) were the most likely to have reduced prices, compared with much smaller shares in the West (13 percent) and Northeast (12 percent). Again, there may be no relationship, but the Census Bureau reported that new home sales were up 2.4 percent in both the South and Midwest and down 6.3 percent in the West compared to March. However, sales were also up 8.7 percent in the Northeast, the region with the lowest reported incidence of price cuts.

   

• April Construction Spending Still Besting 2019 Numbers

  Overall spending on construction fell in April, down 2.9 percent to a seasonally adjusted annual rate of $1.346 trillion from 1.387 trillion. This still left the rate 3.0 percent higher than it was in April 2019. On a non-adjusted basis, spending was $110.492 billion compared to $107.758 billion in March and  106,786 the previous April. Thus far in 2020, spending has totaled $412.465 billion, a 7.1 percent increase from the year-to-date (YTD) spending in 2019. Privately funded construction was at an annual rate of $1.004 trillion, down 3.0 percent from the $1.036 trillion rate in March, but still up 3.8 percent from the expenditures a year earlier. On an unadjusted basis spending was a tad higher than in March, $83.865 billion compared to $83.654 billion, At $318.110 billion, however, spending was significantly higher for the YTD, up 6.8 percent, than the $297.850 billion expended during the first four months of 2019.

   

• 06/01/2020 This Mortgage Broker Has Got IT Going ON

  There’s a lot of ways to go in the mortgage business. On today’s Broker Spotlight brought to you by REMN Wholesale, we interview a mortgage broker that has found a way to provide a lot of value to his real estate agent community. Isn’t it always the truth? Find a way to help others and […]

  The post 06/01/2020 This Mortgage Broker Has Got IT Going ON appeared first on National Real Estate Post.

• Forbearance Requests are Down but still TOO HIGH

  We’re seeing forbearance numbers fall, but hey, 200,000 new requests is no small number! Also in today’s show, our real estate agent friends need to scrounge up some new listings! And, of course, there’s interest rates and what they’re doing. Tune in and then click on the “home” button at the top of the page […]

  The post Forbearance Requests are Down but still TOO HIGH appeared first on National Real Estate Post.

• April's Forbearance Requests Slow to a Relative Trickle

  Black Knight says its research is showing that the numbers of new forbearance plans for homeowners financially affected by the COVID-19 pandemic have slowed to a trickle compared to the tidal wave in early April. Only 7,000 new plans were put in place during the week ended May 26 compared to a 325,000-net increase in the first week of May and 1.4 million in the first week of April. The most recent increase brings the total forbearance plans to 4.76 million or 9.0 percent of all active mortgages. These loans represent more than $1 trillion in unpaid principal balances. The largest number of loans in forbearance plans, 1.99 million, are those serviced for the GSEs Fannie Mae and Freddie Mac. 

• NREP Partners with Lab Coat Agents

  The NREP Daily and Lab Coat Agents have entered into a partnership agreement. This is very exciting news as it will bring the largest real estate agent group together with the largest mortgage originator subscriber base. There will be much more to come, but for now, if you’re an MLO or an agent who has […]

  The post NREP Partners with Lab Coat Agents appeared first on National Real Estate Post.

• Pending Sales Rout May Signal a Bounce for Housing - Realtors

  Pending home sales cratered again in April, marking two straight months of declines that exceeded 20 percent. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) fell 21.8  percent to 69.0. The decline in March was 20.8 percent. The Index is down by 33.8 percent year-over-year. This is the largest decline in pending home sales number since NAR began tracking the transactions in January 2001. Every major region experienced a drop in both month-over-month and year-over-year pending home sales transactions. NAR Chief Economist Lawrence Yun said he expects that April will be the lowest point for pending sales and subsequently May will mark the bottom for closed sales of existing homes.

   

• FHFA’s $1 Trillion GSE Solution?

  $1 Trillion would be the number to change the GSE’s current situation according to Mark Calabria. Will it work?

  The post FHFA’s $1 Trillion GSE Solution? appeared first on National Real Estate Post.

• April New Home Sales Crush Forecasts

  New home sales, rather than dropping like a rock, rose 0.6 percent in April according to the U.S. Census Bureau and the Department of Housing and Urban Development. Part of the gain is due to a revision of the March sales numbers from an original estimate of 627,000 seasonally adjusted annual units to 619,000. This added to the month's 15.4 percent decline from February. While April's sales of newly constructed homes were down 6.2 percent from a year earlier, the April estimate of 623,000 units is totally unexpected. The consensus of analysts polled by Econoday was for an annual pace of 495,000 units with the highest estimate at 592,000 units. They weren't alone; the consensus from MarketWatch was 480,000 units while Trading Economics expected a decline of 21.9 percent. While sales estimates for existing homes are counted at closing and so reflect to a certain extent contracts and economic factors from as much as two months earlier, new home sales are tallied at contract signing, which would put the April data squarely in the middle of COVID-19 shelter orders.

   

• Home Purchase Apps Highest Since January

  Purchase mortgage applications rose for the 6^th straight week, driving the Mortgage Bankers Association's Market Composite Index back into positive territory. The Index, a measure of mortgage loan application volume, increased 2.7 percent on a seasonally adjusted basis during the week ended May 22. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The seasonally adjusted Purchase Index rose by 9 percent compared to one week earlier and was 7 percent higher on an unadjusted basis. The volume of purchase applications pulled ahead of the level during the same week in 2019 by 9 percent, the first year-over-year gain since the week ended March 6.

   

• Freddie's Loan Portfolio on Pace to Increase by 14.3 Percent This Year

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 14.3 percent in April, up from a 9.2 percent gain in March and the largest rate since December. The portfolio balance at the end of the period was $2.396 trillion compared to $2.368 trillion at the end of March and $2.216 trillion a year earlier. The growth rate for the year to date is 8.4 percent. Purchases and Issuances totaled $88,879 billion and Sales were ($0.770) billion. The March numbers were $58,830 billion and ($3,165) billion, respectively.  Single-family refinance loan purchase and guarantee volume was $52.100 billion in April compared to $33.300 billion in March and representing a 69 percent share of total single-family mortgage portfolio purchases and issuances compared to 63 percent the previous month.

   

• Home Prices Still Moved Higher in March

  Even as the COVID-19 pandemic began to hobble home sales in many locations, home prices continued to increase. the Federal Housing Finance Agency's (FHFA's) House Price Index (HPI) held to its 5.7 percent gains the prior month while the S&P CoreLogic Case-Shiller U.S. Home Price Indices posted larger annual increases in March than in February. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 4.4 percent annual gain in March, up from 4.2 percent the previous month. The 10-City Composite's annual increase came in at 3.4 percent, up from 3.0 percent and the 20-City Composite rose from a 3.5 percent growth in February to 3.9 percent. The National Index posted a 0.8 percent month-over-month increase, while the 10-City and 20-City

   

• First Wave of Forbearances Almost Doubles Delinquency Rates

  The years-long downward trend of mortgage delinquencies appears to have come to an abrupt end in April. Black Knight, in its "first look" at the month's loan performance data, said the national delinquency rate shot up 90 percent compared to March and is 86 percent higher than in April 2019 at 6.45 percent. That rate indicates the percentage of active loans that were 30 days or more past due but not in foreclosure with 3.40 million loans in that category, 1.61 million more than the prior month and 1.59 more than in April 2019. Black Knight reported earlier this month that, as of April 30, more than 3.8 million home mortgages had entered forbearance plans. They subsequently reported that some 46 percent of borrowers in forbearance at the end of April, had continued to make at least part of their April payment Black Knight counts mortgages for which payments have not been made as delinquent, even if they are in forbearance and servicers are not reporting them to credit bureaus under rules established by the CARES Act. This means that some of the early stage delinquencies are not in forbearance and that many that are continue to perform.

   

• People Feel More Guilty About Forbearance Than Cheating on Their Spouse.

  Yep. In a recent Lending Tree survey 70% of people surveyed feel guilty about taking a mortgage forbearance. Believe it or not, that’s a higher feeling of guilt than people who cheated on their spouse!

  The post People Feel More Guilty About Forbearance Than Cheating on Their Spouse. appeared first on National Real Estate Post.

• Existing Sales hit 10-Year Low, But Low Rates are a Silver Lining

  Existing home sales fell hard in April, the numbers coming in about where analysts expected them but breaking a nine-month string of annual gains. The National Association of Realtors® said total sales of single-family homes, townhouses, condos, and cooperative were at a seasonally adjusted annual rate of 4.33 million, down from the 5.27 million sold in March, a 17.8 percent decline. It was the lowest level of sales since July 2010 (3.45 million) and the largest month-over-month drop since July 2010 (-22.5 percent). The loss, which NAR said was due to the coronavirus pandemic, brings the aggregate decline over the last two months to 26.3 percent. Sales are now down 17.2 percent from the 5.23 million rate in April 2019 The rate of sales almost matched the 4.325 million-unit consensus estimate from analysts polled by Econoday. Their predictions had covered a range from 4.20 to 4.92 million.

   

• More Evidence That Forbearance is Widely Being Taken as a Precaution

  The number of homeowners in mortgage forbearance plans continues to increase, reaching 4.75 million by May 19. This is 9.0 percent of all active borrowers nationwide and represents a little more than $1 trillion in unpaid principal. The number of plans grew by 93,000 borrowers between May 12 and May 19. Black Knight, in its weekly report on the forbearance program, offered to homeowners who have been financially impacted by the COVID-19 pandemic, notes that the most recent increase is down 70 percent from the 325,000 new plans during the first week of May, and is 93 percent lower than the 1.4 million plans opened the first week of April. This slowdown suggests that volumes may be beginning to flatten, warranting a shift in servicer focus from forbearance pipeline growth to forbearance pipeline management. It appears that some homeowners may have, at least initially, requested a forbearance plan as a precaution. Black Knight says that about 46 percent of borrowers in forbearance at the end of April, 4.25 million in number, made that month's payment while 54 percent did not. Some made full payments, keeping the forbearance as a safety net in case the bottom drops out, while some made partial payments so as not build upon a growing amount that will ultimately need to be repaid.

   

• One LO – 300 Deals a Year

  Can one loan officer and one processor produce and close 300 deals a year? Yep. Noah Sharifi does it year in and year out. What’s his secret? Tune in and see. Oh, and there’s a bonus video at the end… Enjoy. Noah Sharifi 949-388-6349 nsharifi@pchlr.com www.pchlr.com NMLS# 234134

  The post One LO – 300 Deals a Year appeared first on National Real Estate Post.

• FHFA Pushes Forward With Fannie/Freddie Conservatorship Exit

  Maybe all of the talk about ending the GSE's long term incarceration in conservatorship is more than talk this time. Earlier this week both Freddie Mac and Fannie Mae announced they would be issuing Requests for Proposals (RFPs) seeking to hire financial advisors to that end. Then, late Wednesday, the Federal Housing Finance Agency (FHFA), the GSE conservator, said it was seeking comments on proposed revisions to its own 2018 proposal to establish a new regulator capital framework for the two companies. FHFA said the changes to its proposal "ensure each [GSE's] safety and soundness and its ability to fulfill its statutory mission across the economic cycle, in particular during periods of financial stress. The re-proposal is also a critical step toward responsibly ending the conservatorships." FHFA Director Mark Calabria, referencing the current COVID-19 pandemic, said "This national health crisis has affirmed the importance of the [GSE's] mission to serve the American housing market during good times and bad. When credit dries up, low- and moderate-income households are hurt most. We must chart a course for the [GSEs] toward a sound capital footing so they can help all Americans in times of stress. More capital means a stronger foundation on which to weather crises. The time to act is now."

   

• Refis Dominated April Closings as Lenders Tackle Constant Changes

  Interest rates on closed loans continued to decline in April, falling from 3.65 percent in March to 3.48 percent according to the Origination Insight Report from Ellie Mae. That prompted another surge in refinancing, with that portion of originations jumping from 55 percent in March to 65 percent. The refinancing share of conventional loans also rose 10 percentage points to 73 percent. The share of conventional loans also surged, from 76 percent to 81 percent and continuing a trend that began in January. Conventional loans accounted for 71 percent of originations that month. The April share of FHA loans dropped 3 points to 10 percent in April and the VA share dipped to 1 point to 6 percent. The time to close all loans increased from 40 to 42 days, although refinancing time lengthened by four days to 39. Purchase loans required an average of 46 days, one more than in March.

   

• iBuyers are Back & Realogy Dumps Amazon

  iBuyers are Back & Realogy Dumps Amazon

  The post iBuyers are Back & Realogy Dumps Amazon appeared first on National Real Estate Post.

• NON-QM Back in the Game

  NON-QM Back in the Game

  The post NON-QM Back in the Game appeared first on National Real Estate Post.

• Credit Availability Drops Off a Cliff

  Credit Availability Drops Off a Cliff

  The post Credit Availability Drops Off a Cliff appeared first on National Real Estate Post.

• COVID Got you Down? Here is what you CAN do!

  COVID Got you Down? Here is what you CAN do!

  The post COVID Got you Down? Here is what you CAN do! appeared first on National Real Estate Post.

• Mandatory 6 Month Prepayment Penalty on All Agency Loans

  Mandatory 6 Month Prepayment Penalty on All Agency Loans

  The post Mandatory 6 Month Prepayment Penalty on All Agency Loans appeared first on National Real Estate Post.

• New Fannie Mae 100+% LTV Purchase Program?

  New Fannie Mae 100+% LTV Purchase Program?

  The post New Fannie Mae 100+% LTV Purchase Program? appeared first on National Real Estate Post.

• The NEW NREP

  The NEW NREP

  The post The NEW NREP appeared first on National Real Estate Post.

• DOCUMENTED Virtual Showings are BETTER

  DOCUMENTED Virtual Showings are BETTER

  The post DOCUMENTED Virtual Showings are BETTER appeared first on National Real Estate Post.

• Congress Steps Up to Help Mortgage Servicers

  Congress Steps Up to Help Mortgage Servicers

  The post Congress Steps Up to Help Mortgage Servicers appeared first on National Real Estate Post.

• URGENT CALL to ACTION on AMENDING CARES ACT

  URGENT CALL to ACTION on AMENDING CARES ACT

  The post URGENT CALL to ACTION on AMENDING CARES ACT appeared first on National Real Estate Post.

• Borrowers in Forbearance Can Still Get a Mortgage, Probably...

  Homeowners who have been granted forbearance from making full payments on their GSE guaranteed loans during the COVID-19 crisis may still be able to refinance or buy a new home when the crisis ends.

  The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac will permit borrower to obtain a new mortgage under the following conditions. 1) They have reinstated their mortgage or have continued to make their mortgage payments despite being in forbearance or 2) where forbearance has ended, eligibility will be dependent on making three consecutive payments under a repayment plan, a loan modification, or the recently announced payment deferral option.

• A Silver Lining in Mortgage Apps? Purchases Continue to Grow; Forbearance Requests Slow

  Purchase mortgage applications extended their recent run of gains through the week ended May 15. The Mortgage Bankers Association (MBA) said its Purchase Index rose 6 percent compared to the previous week on both a seasonally adjusted and unadjusted basis. It was the fifth straight week of improvement, and the index, which was down by as much as 35 percent from a year earlier in much of April has narrowed that gap to 1.5 percent. MBA's Market Composite Index, a measure of overall application volume, was down 2.6 percent on a seasonally adjusted basis and 2 percent unadjusted, dragged down by the 5^th consecutive decline in refinancing. The Refinancing Index fell back by 6 percent compared to the prior week, but was still 160 percent higher than during the same week in 2019. Refinancing applications accounted for 64.3 percent share of the total, down from 67.0 percent the previous week.

   

• Vast Majority of Forbearances Going to Those Who Don't Need Them

  With the number of homeowners under forbearance plans nearing 10 percent of all of those having a mortgage, a Lending Tree survey indicates that most of those borrowers did not actually need the help. One quarter of the homeowners surveyed by the company said they had applied for forbearance because of a COVID-19 hardship, and of those, 80 percent were granted one. However, only 5 percent said they wouldn't have been able to pay their mortgage without forbearance. Lending Tree says that lenders typically require borrowers to prove they're experiencing a financial hardship in order to qualify for forbearance. However, the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress lets homeowners with government-backed loans apply for forbearance without having to prove a hardship. This helps explain why so many people were able to get a forbearance even though they didn't necessarily need one.

   

• DOCUMENTED Virtual Showings are BETTER

  DOCUMENTED Virtual Showings are BETTER

  The post DOCUMENTED Virtual Showings are BETTER appeared first on National Real Estate Post.

• Congress Steps Up to Help Mortgage Servicers

  Congress Steps Up to Help Mortgage Servicers

  The post Congress Steps Up to Help Mortgage Servicers appeared first on National Real Estate Post.

• Redfin CEO Says Vacation Market is "Toast"

  IBuyers, that new label for real estate agencies that buy homes from sellers rather than just listing them, are back in the hunt. Redfin announced late last week that its RedfinNow subsidiary was about to resume operations, joining Opendoor and Offerpad which have already reopened after COVID-19-driven shutdowns. Zillow has said it would gradually relaunch its Zillow Offers division in upcoming weeks.

  But Redfin CEO Glenn Kelman made a more startling statement as well. In an interview with Jacob Passy published in MarketWatch, he declared that vacation markets are "toast," and AirBnb owners are rushing to unload their properties. They are going too be in tough shape, he said. "There's a whole economy that was built around the liquidity there that Airbnb provided. You could get pretty deep into debt and still have somebody pay your mortgage every month because Airbnb and other travel websites were so good at finding someone to rent it out. And I don't think many of those folks have the reserves that Marriott or that Hilton does."

• Fannie/Freddie Seek Financial Advisor to Help Them Exit Conservatorship

  Fannie Mae and Freddie Mac (the GSEs) have taken what each is calling an important step toward ending their 12 years of operating under conservatorship. Each has announced they are about to issue a request for proposals (RFP) to secure a financial advisor to facilitate that move. In a press release, Freddie Mac said the advisor selected will "advise the company on a range of issues, from capital considerations to the company's business plan, and may ultimately play a role in any potential recapitalization transactions in the future"

   

• April's Harsh Residential Construction Numbers Meet Expectations

  The April residential construction numbers are, of course, horrible. But they aren't out of line with expectations, and builders did continue to plan for expansion and to build. The U.S. Census Bureau says that construction permits fell 20.8 percent compared to March, and housing starts were down 30.2 percent. Here are the gruesome details. The April decrease in permits put the seasonally adjusted annual rate at 1,074,000 units, down 19.2 percent year-over-year. The March estimate, which had represented a 6.8 percent decrease from February as the COVID-19 shutdowns were starting to happen, was actually revised slightly higher, from 1,353,000 to 1,356,000. Analysts has expected permits to be in the range of 750,00 to 1,150,000 units on an annual basis. The consensus of those polled by Econoday was 1,033,000.

   

• The NEW NREP

  The NEW NREP

  The post The NEW NREP appeared first on National Real Estate Post.

• Signs of Recovery? Builder Confidence Regains Footing in May

  Nearly all financial indicators took a hit last month as unemployment measures shot higher, businesses shut down, and consumers and their families self-quarantined. Probably none of those measures suffered a bigger bloodbath than the Housing Market Index (HMI) sponsored by the National Association of Home Builders (NAHB) and Wells Fargo. The index, which measures NAHB's home builder members confidence in the market for newly constructed homes, typically moves 1 or 2 points higher or lower each month. In April it plunged 42 points, the largest monthly change in its more than 30-year history, ending up at a reading of 30. This month it clawed back some of those losses.

• Fannie Says Q2 Will be Tough, but Housing, Healthcare Should Bolster Recovery

  Fannie Mae's Economic and Strategic Research (ESR) group says it expects the U.S. gross domestic product (GDP) to decline by 35 percent (annualized) in the current quarter. The loss of 4.8 percent in the first quarter, the largest decrease in six years exceeded Fannie Mae's estimate of -3.3 percent because of a larger than anticipated slowdown in personal consumption expenditures (PCE), 40 percent of which, ironically, came from a decline in spending on healthcare because of delays or cancellations in elective surgeries because of the pandemic. The plummeting growth expected in the second quarter will improve in the second half of the year, with healthcare at that point providing outsized support. As restrictions and social distancing measures are relaxed, the economists believe that an elevated savings rate, supportive monetary and fiscal policies, and pent-up demand will start to drive the economic recovery. Full-year 2020 GDP is expected to contract 5.3 percent, while 2021 growth is forecast to be at 5.2 percent.

   

• New Fannie Mae 100+% LTV Purchase Program?

  New Fannie Mae 100+% LTV Purchase Program?

  The post New Fannie Mae 100+% LTV Purchase Program? appeared first on National Real Estate Post.

• Despite Record Unemployment, Delinquencies are Still Down From Last Year

  The national delinquency rate rose significantly in the first quarter of 2020, driven largely by a surge in the early stage rates. The Mortgage Bankers Association said the rate of loans on one-to-four-unit residential properties rose 59 bps (bps) compared to the fourth quarter of 2019 to a seasonally adjusted rate of 4.36 percent of all loans. This was still 6 bps lower than the rate in the same quarter of last year. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. MBA's National Delinquency Survey (NDS) found the 30-day delinquency rate rose to 2.67 percent, 50-bps growth that matches the third quarter of 2017 as the highest quarterly increase in the NDS series dating back to 1979. The 60-day delinquency rate increased 7 bps to 0.77 percent, and the 90-day or more past due delinquency bucket increased 3 bps to 0.93 percent. By loan type, the total delinquency rate (which includes 30-day, 60-day, and 90-day or more past due) for conventional loans increased 34 bps to 3.16 percent over the previous quarter, the FHA rate was up 131 bps to 9.69 percent and the VA rate rose 101 bps to 4.65 percent. The FHA and VA rates were the highest since the fourth quarter of 2017 and the first quarter of 2015, respectively.

   

• Forbearance Volume Continues, but at a Slower Pace

  In its May 5 report on the number of COVID-19 forbearance plans in effect, Black Knight said the rate of new plans had slowed, but speculated they could pick up again as the May mortgage payments came due. As of May 12, that had not happened. The company reports that the number of plans had increased from a revised 4.5 million to 4.7 million. That increase, a net of just under 26,000 new plans per day, is a substantial reduction of more than 85 percent of the daily rate in early April. However, as most mortgage documents allow a 15-day grace period before a mortgage is marked as past due and a late fee assessed, borrowers still had a few days remaining at the end of the reporting period to request forbearance before any penalty kicked in.

   

• MBA Says Buyers Will Return by Summer as Lockdown Ends

  The Mortgage Bankers Association (MBA) says applications for financing new home purchases were down 25 percent in April compared to March and by 12 percent year-over-year. This data from MBA's Builder Application Survey (BAS) does not include any adjustment for typical seasonal patterns. "New home purchase applications severely weakened in April, which coincided with the peak of the social distancing efforts and restrictions on non-essential activities to help slow the spread of COVID-19," according to Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "During what's typically the prime home buying season, activity fell 25 percent from March and decreased 12 percent from a year ago," he said. "MBA estimates that new home sales dropped to an annualized pace of 533,000 units - the slowest since December 2016. This decline was in line with data from our Weekly Applications Survey, which indicated a pullback in March and most of April." The seasonally adjusted sales estimate for March was 697,000 units. On an unadjusted basis, MBA estimates that there were 51,000 new home sales in April 2020, a decrease of 28.2 percent from 71,000 new home sales in March. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.

   

• Mandatory 6 Month Prepayment Penalty on All Agency Loans

  Mandatory 6 Month Prepayment Penalty on All Agency Loans

  The post Mandatory 6 Month Prepayment Penalty on All Agency Loans appeared first on National Real Estate Post.

• FHA Borrowers Offered New Option for Catching Up on Loans

  The Federal Housing Finance Agency (FHFA) and both GSEs (Fannie Mae and Freddie Mac) have announced a new option for homeowners in COVID-19 forbearance plans, to eventually return their mortgages to performing status. As part of the CARES Act, a borrower in financial stress because of the pandemic can request forbearance, a pause or reduction in their monthly mortgage payment. The missed payments will have to be paid back by the borrower after the forbearance ends and FHFA and the GSEs have offered several options including repayment plans, loan modifications, or reinstatement although they have repeatedly stressed that no borrower will be required to make such a lump sum payment of the arrearage.

   

• COVID Got you Down? Here is what you CAN do!

  COVID Got you Down? Here is what you CAN do!

  The post COVID Got you Down? Here is what you CAN do! appeared first on National Real Estate Post.

• Pre-Lockdown Home Prices Increase by Double-Digits in Some Metros

  Home prices really ramped up in the first quarter of 2020 as inventory failed to make significant gains. The National Association of Realtors® (NAR) said the median single-family home in the quarter sold at $274,600, a 7.7 percent annual increase. Prices rose in 96 percent of the 181 metropolitan areas tracked NAR. In the fourth quarter of 2019, 94 percent posted gains. Forty-six metros, mostly in the West and South regions, saw prices increase by double-digits. This included Boise City (18.1 percent), Eugene (14.5 percent), and Colorado Springs (14.4 percent), among others. "The first quarter price jumps mostly reflect conditions prior to the coronavirus outbreak and show the strength of the housing demand prior to the pandemic," said Lawrence Yun, NAR chief economist. "Even now, due to very limited listings, home prices are showing no signs of buckling."

   

• Refi Boom Remains Steady as Purchase Demand Continues to Heal

  Last week was yet another good one for purchase mortgage activity and refinancing, while continuing to fade, was still at double its pace of a year ago. The Mortgage Bankers Association (MBA) said the upshot was a slight increase in its Market Composite Index, a measure of mortgage loan application volume. It gained 0.3 percent on a seasonally adjusted basis from one week earlier and was 1 percent higher on an unadjusted basis. The volume of purchase applications gained 11 percent compared to the previous week on both an adjusted and an unadjusted basis. It was the fourth straight weekly increase in the Purchase Index although it remains 10 percent below its level a year earlier. The Refinance Index decreased 3 percent from the previous week and was 201 percent higher than the same week in 2019. The refinancing share of mortgage activity decreased to 67.0 percent from 70.0 percent the previous week.

   

• Credit Availability Drops Off a Cliff

  Credit Availability Drops Off a Cliff

  The post Credit Availability Drops Off a Cliff appeared first on National Real Estate Post.

• Calm Before the Storm: Delinquency Rates Hit New Lows in February

  CoreLogic's Loan Performance Insights Report has shown only incremental changes, primarily declines, in most of its measures of delinquency. The most recent report, covering February, is more of the same, marking the 26^th straight month that delinquency rates have fallen, and most are now at record lows. However, the company says it expects, starting with the March report, that those measures will begin to move higher and that "we could see increases in serious delinquencies as high as four-fold by the second half of 2021." CoreLogic said the national delinquency rate, mortgages that were 30 days or more past due including those in foreclosure was 3.6 percent in February. This was down 0.4 percentage points from February 2019.

   

• NON-QM Back in the Game

  NON-QM Back in the Game

  The post NON-QM Back in the Game appeared first on National Real Estate Post.

• Local Governments are Preparing for Forbearance Fallout

  The economic consequences of the COVID-19 pandemic are increasingly clear, and so are the results of some efforts to alleviate financial hardships. Ginnie Mae and the Federal Housing Finance Agency have mandated servicers of FHA, VA, and GSE (Fannie Mae and Freddie Mac) loans to offer forbearance plans to their borrowers and this requirement was codified by Congress in the CARES Act. Borrowers using those plans have soared into the millions. When the mandate was announced, there was concern from several quarters about the advances of principal and interest (P&I) payments servicers are required to make to investors in mortgage-backed securities even when borrowers are not paying on their loans. Servicers are also responsible for homeowner insurance premiums and property taxes.

   

• Servicers on the Hook as 4.1 Million Loans Now in Forbearance

  Black Knight reports that, as of May 7, there were 4.1 million loans in forbearance, up from 3.8 million in the company's last report which covered plans put into effect by mortgage servicers through April 30. The new total represents 7.3 percent of all active mortgages and accounts for $890 billion of unpaid mortgage principal. Fannie Mae and Freddie Mac guaranteed loans account for 1.91 million of total loans and $390 billion in principal. Those loans are 6.4 percent of the 27.9 million loans the GSEs have in service. There were 1.33 million Ginnie Mae (FHA and VA) loans in forbearance plans, accounting for an unpaid balance of $246 billion and 11.0 percent of the Ginnie Mae portfolio of 12.1 million loans. The remaining 933,000 loans are 7.2 percent of the 12.9 million loans being serviced for portfolio or private label lenders. The unpaid balance is $253 billion.

   

• iBuyers are Back & Realogy Dumps Amazon

  iBuyers are Back & Realogy Dumps Amazon

  The post iBuyers are Back & Realogy Dumps Amazon appeared first on National Real Estate Post.

• Fannie Mae Sentiment Index Plunges to Nine-Year Low

  Fannie Mae's Home Purchase Sentiment Index (HPSI) plummeted 17.8 points in April. Combined with its 11.7-point loss in March the Index is at 63.0, its lowest reading since November 2011. Several of its components are now in net negative territory.

  The HPSI is calculated from responses to six questions from the monthly National Housing Survey (NHS). Five of the components dropped compared to the previous month, four of them by double digits.

  The most dramatic change was in the answers to the question of whether it is a good time to sell a home. Those who said no rose from 36 percent in March to 65 percent while positive responses went from 52 to 29 percent. As a result, the net positive share decreased 52 points from March and 79 points compared to a year earlier. When asked for their reasons for their responses, the majority of survey participants cited unfavorable economic conditions

• David Stevens: Calabria NOT Heeding the Call that Created the GSEs

  David Stevens: Calabria NOT Heeding the Call that Created the GSEs

  The post David Stevens: Calabria NOT Heeding the Call that Created the GSEs appeared first on National Real Estate Post.

• FHFA Extends Emergency Loan Processing Changes

  The Federal Housing Finance Agency (FHFA) has extended several of the "flexibilities" it announced in March to assist mortgage originators in processing loans for Fannie Mae and Freddie Mac during shutdown associated with the COVID-19 emergency. The accommodations are designed to eliminate some in-person contact and to make it possible to for processing staff to work from remote locations.

  Originally intended to remain in effect for loans with application dates on or before May 17, the following are now extended to at least June 30^th.

  "These loan origination flexibilities will continue to facilitate loan closings and go a long way to keeping the market functioning effectively during this national emergency," said FHFA Director Mark Calabria. "Today's actions also keep homebuyers, sellers, and appraisers safe."

• New Survey Shows COVID Mortgage Stats

  New Survey Shows COVID Mortgage Stats

  The post New Survey Shows COVID Mortgage Stats appeared first on National Real Estate Post.

• Agencies are Cutting Access to Mortgage Data for Low-Income Borrowers

  Two Urban Institute (UI) analysts have raised an alarm about changes to federal regulations that threaten to limit access to important data about the mortgage market and credit availability for low and moderate-income borrowers and communities. Most of the changes are coming through rulemaking at the Consumer Financial Protection Agency (CFPB) and relate to the Home Mortgage Disclosure Act (HMDA). Researchers Ellen Seidman and Lauri Goodman said the loss of access to important data has been quiet and steady. However, three current rulemakings, one final, one proposed, and one at an early stage, promise to exacerbate the situation and affect both the public and policymakers. They add that the possibility the COVID-19 pandemic could trigger another credit crisis makes this especially troubling.

   

• Purchase Volume on Three-Week Winning Streak

  Applications for purchase mortgages increased for the third straight week, keeping overall activity during the week ended May 1 virtually unchanged from the previous week. Refinancing, while drifting lower, still provided the largest share of the market. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of loan application volume, increased 0.1 percent on a seasonally adjusted basis from one week earlier and was up 1 percent on an unadjusted basis. Purchase applications rose 6.0 percent after seasonal  adjustment. The unadjusted index was 7.0 percent higher than the previous week but was down 19 percent year-over-year. Refinancing accounted for 70.0 percent of applications during the week compared to 71.6 percent during the week ended April 24, but the Refinancing Index slipped by 2.0 percent. Volume, however, was still more than twice that of the same week in 2019.

   

• Opendoor is Back and They Say They Are NEW?

  Opendoor is Back and They Say They Are NEW?

  The post Opendoor is Back and They Say They Are NEW? appeared first on National Real Estate Post.

• Forbearance Problem Remains Huge, But The Pace is Slowing

  The Mortgage Bankers Association (MBA) has confirmed the findings that Black Knight reported on Monday morning that, while the number of forbearances in effect as a result of the COVID-19 pandemic continues to rise, the rate of increase slowed as April progressed. MBA said its weekly survey found the number of loans in a forbearance plan increased from 6.99 percent of loans being serviced on April 19 to 7.54 of the total as of April 26. MBA estimates that 3.80 million homeowners are now in forbearance. "The share of loans in forbearance increased once again in the last full week of April, but the pace of new requests slowed," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "With millions more Americans filing for unemployment over the week, the level of job market distress continues to worsen. That is why we expect that the share of loans in forbearance will continue to grow, particularly as new mortgage payments come due in May."

   

• Home Price Growth Slows, Mostly Unchanged in April

  CoreLogic's Home Price Index for March showed that the spring market started out strongly, with price appreciation from the previous month of 1.3 percent compared to a gain of 0.6 percent from January to February. The annual increase was 4.5 percent, a half point more than the year-over-year increase the previous month That, however, is history. The company, in its first official HPI forecast since a national emergency declaration regarding the COVID-19 pandemic, predicts that home price growth will fall to an annual rate of 0.5 percent by March 2021. It also estimates that given the strong market for homes that existed at the beginning of the year, home prices did not plummet precipitately immediately after the virus began to spread and the country official entered a recession. Despite a decline of 26 percent in the number of closed home sales in the last two weeks of March, CoreLogic estimates that prices rose 0.6 percent between March and April.

   

• FHFA Changes STILL Miss the Mark!

  FHFA Changes STILL Miss the Mark!

  The post FHFA Changes STILL Miss the Mark! appeared first on National Real Estate Post.

• Here's How The Pandemic Affected Housing/Mortgage Markets in March

  Black Knight's new Mortgage Monitor restates some of the statistics on COVID-19 related forbearance plans it released late last week - i.e. that the number of those plans had reached 3.8 million by April 30. But it makes one additional point. The number of plans being put in place started to taper down as the middle of the month approached. Between April 21 and April 30, the number of plans enacted each day varied between 53,000 and 102,000. This is less than a quarter of the daily number seen at the beginning of the month. Since servicers typically charge late fees after the 15th of the month it might indicate that borrowers are being both proactive and strategic in contacting their servicers. Black Knight says it remain to be seen if the same type of spike occurs at the beginning of May, but under an optimistic scenario in which daily forbearance volumes continue to decline by 10 percent per day, we would see a peak of 4.5 million plans in place over the coming months. But if current volumes continue through mid-June, that number could spike to 8 million or 16 percent of active mortgages.

   

   

• Healthcare and Public Safety Expenditures Boost Construction in April

  Construction spending posted a gain in April, rising 0.9 percent to a seasonally adjusted annual rate of $1.36 trillion from a revised estimate of $1.35 trillion in February. This was a 4.7 percent rate of growth compared to March 2019 when the rate was $1.30 trillion. On an unadjusted basis, total spending increased from $95.91 billion in February to $105.19 billion in March and was about $6 billion higher year-over-year. On a year-to-date (YTD) basis spending increased 6.7 percent, rising from $278.46 billion in the first three months of 2019 to $297.02 billion this year. Total private sector spending rose 0.7 percent for the month, to $1.02 trillion and was 3.7 percent higher on an annual basis. Spending on an unadjusted basis rose from $73.94 billion to $81.29 billion and the YTD total of $229.57 billion is up 5.7 percent from the same period last year.

   

• Home Seller Profits Still Significant Despite Coronavirus Impact

  Homeownership continued to be a significant builder of household wealth in the first quarter of this year. ATTOM Data Solutions said home sellers nationwide realized a home price gain of $67,100 on a typical sale during the quarter, up from $66,264 in the fourth quarter of 2019 and from $59,000 in the first quarter of 2019. The profit represented a return on investment (ROI) of 33.7 percent, an increase from 32.8 percent a year earlier but down from the post-recession high of 34.4 percent at the end of last year. ATTOM identified 108 metro areas with at least 1,000 sales of single-family houses and condos during the quarter and found the highest ROIs in the west. San Jose topped the list at 81.8 percent followed by San Francisco at 67.7 percent, Seattle, and Spokane at 63.6 and 61.8 percent respectively, and Boise at 59.1 percent.

   

• Fannie Profit Plummets; Forbearance Fears Confirmed

  Given their respective sizes, the economic dislocation created by the COVID-19 pandemic appears to have hit Fannie Mae harder than its competitor GSE Freddie Mac. Fannie Mae said on Friday that it had total comprehensive income of $0.476 billion in the first quarter of 2020, down from $4.266 billion the previous quarter. Freddie Mac, while down significantly, managed comprehensive income of $0.62 billion, compared to $2.430 billion in the fourth quarter of 2019. The company said the decrease in net income was due primarily to a shift from credit-related income to credit-related expense. It increased its allowance for loan losses to reflect those it currently expects to incur, including 4.1 billion attributed to the COVID-19 outbreak reflected in its $2.7 billion of credit-related expenses for the quarter.

   

• URGENT: Easy Call to Action Needs ALL of Our Support

  URGENT: Easy Call to Action Needs ALL of Our Support

  The post URGENT: Easy Call to Action Needs ALL of Our Support appeared first on National Real Estate Post.

• Freddie Mac Posts Q1 Gain Despite Pandemic Hit

  Freddie Mac eked out a positive comprehensive income of $0.62 billion in the first quarter, $1.83 billion less than it posted in the fourth quarter of 2019 and $1.04 billion below earnings a year earlier.

  The company's CEO David M. Brickman said, "Freddie Mac's first quarter was marked by unprecedented challenges to our country, our business, and our markets - and I am very proud of how we have responded. We are offering relief to millions of homeowners and renters, supporting our customers in new and vital ways, and serving as a stabilizing force for the housing finance system. Through these efforts, we are continuing to fully serve our mission."

• Forbearance Count Nears Four Million, 7.3% of all Mortgages

  The number of COVID-19 related forbearance plans in effect with servicers continued to increase through the end of April according to a report released on Friday by Black Knight. Forbearance is the temporary suspension or reduction of a required payment. As of April 30, more than 3.8 million home mortgages, 7.3 percent of all active obligations, are in such plans. In comparison, as of April 23 affected 3.4 million loans or 6.4 percent of the total. The current forbearances account for $841 billion in unpaid principal, up from $754 billion the prior week.

   

• Alarming COVID19 Real Estate Stats

  Alarming COVID19 Real Estate Stats

  The post Alarming COVID19 Real Estate Stats appeared first on National Real Estate Post.

• Pending Sales Dip 20% but Realtors See Dislocation as Temporary

  Everyone knew that the March pending home sales report, the first real measure of the impact of the COVID-19 impact on the residential real estate markets, was going to be bad. It was that and more. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) dropped 20.8 percent compared to February, landing at  88.2. This was 16.3 percent below its level in March 2019. The PHSI, a forward-looking indicator based on signed contracts for purchase of existing single-family homes, townhomes, condos, and cooperative apartments, was at 111.5 in February.

   

• Our Appointed Officials Have Completely Lost Their Minds

  Our Appointed Officials Have Completely Lost Their Minds

  The post Our Appointed Officials Have Completely Lost Their Minds appeared first on National Real Estate Post.

• Homeownership Highest in Nearly 7 Years

  The U.S. Homeownership Rate reached its highest level in nearly seven years in the first quarter of 2020. The Census Bureau said the rate, 65.3 percent,  tied with the rate in the third quarter of 2013. The rate hit a multi-decade low of 62.9 percent in the second quarter of 2016. The first quarter rate was up from 65.1 percent the previous quarter and was 1.1 percent higher than in the first quarter of 2019.

  The rate was highest in the Midwest at 69.2 percent and lowest in the West at 60.1 percent. All four regions experienced annual increases.

  Homeownership was higher for all age cohorts that a year earlier and was, as usual,  highest among the oldest households, those 65 years and older at 78.7 percent, an 0.2-point increase. Those under 35 years of age had the lowest rate at 37.3 percent, but that was a 1.9-point annual gain. Those 35 to 44 years of age are at 61.5 percent, the next older group is at 70.3 percent and households between that ages of 55 to 64 have a 76.3 percent rate.

• Mortgage Applications Show Possible Signs of an Upturn?

  The Mortgage Bankers Association (MBA) reported a second strong week for purchase applications last week although refinancing continued to dominate the mortgage market. MBA's  Market Composite Index, a measure of application volume, was down 3.3 percent on a seasonally adjusted basis during the week ended April 24 and was 2 percent on an unadjusted basis, however, the adjusted and unadjusted Purchase Index rose 12 percent and 13 percent respectively from the prior week. Smaller increases (2.0 and 3.0 percent) during the week ended April 17 had ended a five-week string of declines. Purchasing was still down 20 percent from the same week in 2019.

   

• COVID Era Creating New Habits

  COVID Era Creating New Habits

  The post COVID Era Creating New Habits appeared first on National Real Estate Post.

• Freddie Announces No Lump Sum Required After Forbearance

  Freddie Mac has laid out options that borrowers who have been granted forbearance on its loans have when it comes to repayment. The company's CEO David Brickman stressed that borrowers will never be asked to repay missed payments in one lump sum. March, the company, along with the other GSE Fannie Mae, announced several actions to assist homeowners facing financial hardship due to COVID-19. These include forbearance during which a borrower's payments are reduced or suspended. While borrowers in forbearance must repay the missed payments, full repayment immediately following forbearance is just one option open to them.

   

• Mortgage Market Shows Resilience, Refis Continue to Dominate Freddie's Volume

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 9.2 percent in March, up from a 5.5 percent gain in February. The portfolio balance at the end of the period was $2.368 trillion compared to $2.350 trillion at the end of February and $2.204 trillion a year earlier. The growth rate for the year to date is 6.4 percent. Purchases and Issuances totaled $58.830 billion and Sales were ($3.165) billion. The February numbers were $46.054 billion and ($1.041) billion, respectively.  Single-family refinance loan purchase and guarantee volume was $33.300 billion in March compared to $23.800 billion in February and representing a 63 percent share of total single-family mortgage portfolio purchases and issuances compared to 59 percent the previous month.

   

• Will February Prove to be the Last Positive Home Sales Report for Now?

  In what will probably prove to be the last full month of normal home sales for a while, prices of homes accelerated significantly. The S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 4.2 percent in February compared to a year earlier. The index, which covers all nine U.S. census divisions, had posted a 3.9 percent annual increase in January. The 10-City and 20-City Composite Indices had similar gains. The former was up 2.9 percent year-over-year compared to 2.6 percent in January while the 20-City's appreciation was 3.5 percent compared to 3.1 percent. Phoenix again topped the list of 20 cities with an annual gain of 7.5 percent. It was followed by Seattle at 6.0 percent and Tampa and Charlotte, each at 5.2 percent. Seventeen of the 20 cities reported higher price increases in the year ending February 2020 versus the year ending January 2020.

• How Far Can This Go?

  How Far Can This Go?

  The post How Far Can This Go? appeared first on National Real Estate Post.

• FHFA Crushing Hopes of Millions of Borrowers

  FHFA Crushing Hopes of Millions of Borrowers CLICK HERE to TAKE ACTION  

  The post FHFA Crushing Hopes of Millions of Borrowers appeared first on National Real Estate Post.

• Covid Impacts New Home Sales, Largest Decline in 7 Years

  The Census Bureau and Department of Housing and Urban Development's report on new home sales in March is the first real time indication of the impact the COVID-19 mitigation is having on total sales. The report on existing homes, released a few days ago, largely reflected the closing of contracts booked in February and early March. New home sales are counted at contract signing. That said, the report shows a significant downturn, with a seasonally adjusted annual sales rate of 627,000 homes. This is a decline of 15.4 percent from the revised (from 765,000) 741,000 units rate in February and was down 9.5 percent from a year earlier. The results were consistent with the wide range of forecasts from analysts polled by Econoday of 570,000 to 700,000 units. They were, however, well below the consensus estimate of 643,000.

   

• What's Working and What Needs to Change For Mortgage Process -Urban Institute

  Two Urban Institute (UI) researchers pose a pertinent question in a recent paper. Laurie Goodman and Aaron Klein ask, "What is the purpose of the Fed lowering short term rates to zero and buying hundreds of billions of mortgages to lower mortgage interest rates if people cannot functionally access a mortgage?"

  They point out that the mortgage process, whether to purchase a home or refinance it, has a long to-do list including title searches, appraisals, applicant employment and income verification, notarization, closings, and recording of the transaction in county offices. If any of those items cannot be checked off, the ability to get a mortgage is jeopardized. With much of the world shut down in order to mitigate the COVID-19 pandemic, the entire process could be broken.

• 3.4 Million Loans Already in Forbearance - Black Knight

  March is typically the strongest month of the year for mortgage performance, probably because, according to Black Knight the receipt of tax refunds allows delinquent borrowers to catch up on their payments. However, last month the delinquency rate rose 3.39 percent, the first time they have increased in March since the turn of the century. Not even during the Great Recession was there a March uptick. The company says that forbearances are included in its statistics as delinquencies even though, under the CARES Act, they are not reported as such to the credit bureaus. Along with its regular "First Look" at mortgage performance, Black Knight also updated its daily forbearance tracking. The number of mortgages that were 30 days or more past due but not in foreclosure reached 1.8 million in March, an increase of 55,000 from February. Despite the 3.39 percent change, those delinquencies were down 7.25 percent compared to March 2019.

   

• BREAKING NEWS: David Stevens – FHFA is Creating a Crisis

  BREAKING NEWS: David Stevens – FHFA is Creating a Crisis Share this video with your House Reps!  Mark Calabria of FHFA is completely out of touch with the consequences of his policies regarding servicing and forbearance matters within the mortgage industry.  PLEASE SEND this interview, make your calls and send your emails.  The non-banking mortgage […]

  The post BREAKING NEWS: David Stevens – FHFA is Creating a Crisis appeared first on National Real Estate Post.

• FHFA Missing The Mark on Forbearance Issue?

  FHFA Missing The Mark on Forbearance Issue?

  The post FHFA Missing The Mark on Forbearance Issue? appeared first on National Real Estate Post.

• Covid Fallout Fails to Stop March Home Sales, 97 Months of Annual Growth

  Existing home sales fell back last month from their unexpectedly good performance in February, but still maintained their long record of annual increases. The National Association of Realtors® (NAR) said sales of previously owned single-family houses, townhomes, condos, and cooperative apartments were at a seasonally adjusted annual rate of  5.27 million units in March compared to 5.77 million units in February. The 8.5 percent decline followed a 6.5 percent increase in February and despite the decline, overall sales increased year-over-year for the ninth straight month, rising 0.8 percent from the annual rate of 5.23 million sales in March 2019. Sales stayed well within the range of analysts forecasts collected by Econoday. They ranged from 4.50 million to 5.95 million with a consensus of 5.35 million.

   

• FHFA Limits Servicer Obligations for Loans in Forbearance

  The Federal Housing Finance Agency (FHFA) has clarified the obligations of Fannie Mae and Freddie Mac's (the GSEs') servicers to investors during the COVID-19 crisis. Servicers have been told to extend forbearance to homeowners who are experiencing financial distress as the result of the pandemic and, as of last Friday, approximately 5 percent of GSE loans had entered forbearance agreements.

  Servicers are contractually required to forward monthly principal and interest payments to mortgage-backed security (MBS) investors even when homeowners are not making payments on the underlying loans. While servicers maintain reserves for this purpose, it has been feared that the expected high utilization of forbearances may become an unmanageable burden, especially for smaller companies.

• Purchase Applications Stabilizing, Refis Rage On

  Purchase application volume was up slightly last week, the first gain since early March. Refinancing and overall volume, however, were flat. The Mortgage Bankers Association said its Market Composite Index, a measure of volume, decreased 0.3 percent on a seasonally adjusted basis during the week ended April 17. On an unadjusted basis it rose 0.1 percent. The seasonally adjusted Purchase Index rose 2.0 percent compared to the previous week and 3.0 percent unadjusted, but purchase mortgage activity was 31 percent lower than the same week in 2019.

   

• February Home Prices Stay Their Course, Increase 5.7% Annually

  House price growth continued to accelerate through February on the Federal Housing Finance Agency's (FHFA's) Housing Price Index with the U.S. index posting a monthly gain of 0.7 percent in February. The January increase was originally reported as 0.3 percent, a sharp decline compared to the previous months, but that estimate has now been revised to 0.5 percent. The annual increase in February was 5.7 percent. The year-over-year appreciation in January was 5.3 percent. All changes from January in the nine census divisions were positive, ranging from 0.3 percent in the West South Central division to 1.2 percent in the Middle Atlantic division.  The year-over-year changes were positive as well and ranged from 4.2 percent in the West South Central division to 8.1 percent in the Mountain division. 

   

   

   

• Covid Pandemic Making "Virtual" Inspections a Reality

  In its early April survey of builders for its Housing Market Index the National Association of Home Builders (NAHB) added questions about the impact of the pandemic on construction. While many states have limited "non-essential" business activity, the Department of Homeland Security's guidance has given state and local governments the option of classifying residential construction as essential and many have done so. NAHB asked builders whether construction was allowed in the areas where they build and 78 percent responded in the affirmative. But, even where construction is permissible, effects of COVID-19 may inhibit it or at least slow it down and as NAHB pointed out earlier, at least half of homebuilders have put projects on hold.

   

• 3 Million Loans in Forbearance and Climbing

  3 Million Loans in Forbearance and Climbing

  The post 3 Million Loans in Forbearance and Climbing appeared first on National Real Estate Post.

• February Rent Increases were Largest in Four Years

  Single-family homes now provide half of all rental units in the U.S. CoreLogic's Single Family Rental Index (SFRI) recorded an annual gain of 3.3 percent in rents for those homes, the largest annual increase in nearly four years. In February 2019 the index was up 3.0 percent year-over-year. The rate of gains peaked in February of 2016 at 4.2 percent. CoreLogic says, as the single-family rental (SFR) market contends with the current economic shifts, we can expect a rise-and-fall in demand in the coming months. While shelter-in-place orders have residents hunkering down for the moment, we may see an increase in demand for single-family rentals as people shy away from multifamily rentals in the wake of the pandemic.   

   

• Number of FHA Loans in Forbearance Doubles in One Week

  There are now two entities tracking forbearance statistics on a regular basis, the Mortgage Bankers Association (MBA) and Black Knight. The information they are providing is critical, and we did summarize both reports last week, but covering both is probably overkill. Until one report proves to be measurably more informative than the other or we find a way to combine the information, we will probably switch back and forth between the two. This is the MBA report from its Forbearance and Call Volume Survey conducted for the April 6 to April 12 period. The number of loans in forbearance increased from an average of 3.74 percent of servicer portfolios during the March 30 to April 5 period to 5.95 percent. In contrast, only 0.25 percent of all loans were in forbearance at the beginning of March.

   

• The Next COVID Victim – the HELOC

  The Next COVID Victim – the HELOC

  The post The Next COVID Victim – the HELOC appeared first on National Real Estate Post.

• Fannie Mae Predicts Short But Excruciating Downturn

  Fannie Mae's April Economic Developments summary is, like Freddie Mac's, relatively optimistic only because they see the impact of the pandemic as being very short lived. However, in the interim, some of the numbers they forecast are hard to hear. In March, as the COVID-19 crisis loomed, Fannie's Economic and Strategic Research Group reduced outlook for economic growth over the entire year from 2.2 to 1.8 percent. They now expect it to contract by 3.1 percent. Much of the negative impact from the pandemic is expected in the current quarter and it will be a lulu, a reduction of 25.3 percent on top of a projected loss of 3.3 percent in Quarter 1. Based on an end to the social distancing orders in late May and a gradual resumption of business activity in June, there will be above average growth in the remaining two quarters, 7.6 percent and 13.6 percent respectively. Growth for 2021 is projected at 4.8 percent.

   

   

• Forbearance Agreements Hitting Smaller Servicers Hard

  It is only a little more than a month into the COVID-19 crisis, but mortgage forbearances are already adding up. Black Knight has begun tracking that activity extrapolating an estimate of the active mortgage universe from a sample of loans. The company will be providing forbearance information on a daily basis. Black Knight estimates that, as of April 16, there were 2.94 million homeowners who had entered into forbearance agreements, temporarily delaying or reducing their required monthly mortgage payments. The unpaid principal balance of those mortgages is $651 billion. The loans account for 5.5 percent of the current total of 53 million active mortgages and includes 4.9 percent of all Fannie Mae and Freddie Mac (GSE) guaranteed loans, a total of 1.37 million, and 7.6 percent (922,000) of those backed by FHA and the VA. An estimated 615,000 of the loans in forbearance are being serviced for other lenders.

• Urgency Builds for FHFA to Fall in Line

  Urgency Builds for FHFA to Fall in Line

  The post Urgency Builds for FHFA to Fall in Line appeared first on National Real Estate Post.

• Pandemic? Not a Problem for These Sight-Unseen Buyers

  Is it possible that home buyers are adjusting more quickly to this brave new virus-driven world than was hoped? Will Americans now do the whole home purchase shtick from their living room couch? A survey the National Association of Realtors® (NAR) conducted among its members this week found that one-quarter of them had facilitated a purchase contract where their customers had not physically seen the property. Those buyers had visited a median of only three homes, either virtually or in person, before signing a contract. NAR's 2019 Profile of Home Buyers and Sellers found buyers typically looked at nine homes before buying. NAR chief economist Lawrence Yun said, "Expect second quarter home sales activity to slow down with the broad observance of stay-at-home orders, but sales will pick up when the economy reopens as many potential home buyers and sellers indicate they're still in the market or will be in a couple of months, Home prices remain stable as deals continue to happen with the growing use of new technology tools. 
• March Closings Dominated by Refinancing

  Declining interest rates in March pushed the refinance share of closed loans higher again according to information in Ellie Mae's March Origination Insight Report. The average rate for all 30-year fixed-rate mortgages closed during the month was the lowest since January 2013, 3.65 percent, 21 basis points lower than the average in February. Conventional loans had the same rate and change. Similarly, the average rate for 30-year rate on FHA loans fell to 3.76 percent from 3.87 percent and VA 30-year rates averaged 3.45 percent, down from 3.62 percent. As rates dropped, the percentage of refinances increased, representing 55 percent of closed loans, up from 51 percent in February and 50 percent in January. The refinancing share of loans increased across all loan types; for FHA loans it was up 2 points to 22 percent, the conventional share increased from 55 to 63 percent, and VA refinances accounted for 30 percent of the total, 7 points more than in February.

   

• No Appraisals Until 90 Days After Closing?

  No Appraisals Until 90 Days After Closing?  What could possibly go wrong?

  The post No Appraisals Until 90 Days After Closing? appeared first on National Real Estate Post.

• Fannie/Freddie Regulator and CFPB Agree Will Share Mortgage Servicing Info

  The Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB) have made arrangements to share information during the COVID-19 national emergency. CFPB is a big portal for and repository of consumer complaints about providers of financial services and has agreed to make that information as it relates to mortgage servicers along with appropriate analytical tools to FHFA available. In turn, the conservator and regulator of the GSEs Fannie Mae and Freddie Mac will provide information to the Bureau about forbearances, modifications and other loss mitigation initiatives undertaken by servicers of GSE loans.

  The GSEs have instructed servicers to enter into forbearance agreements with borrower encountering financial hardship due to the pandemic. These agreements allow borrowers to pause or reduce their mortgage payments although those amounts must ultimately be paid back. Mortgage servicers are responsible for working with borrowers to set up a repayment plan that works for both parties.

• This Chart of New Home Construction Looks Surprisingly Good Despite Biggest Hit in 40 Years

  While the March residential construction report from the U.S Census Bureau is grim, one can find a small glimmer of optimism in the fact that, while housing starts fell off a cliff, there was much less damage done to permits. Perhaps this means builders are envisioning a pause in construction rather than a total collapse. Robert Dietz, an economist with the National Association of Home Builders (NAHB) points out that, despite the mitigation efforts to control spread of the COVID-19 virus, construction can continue in a majority of states, "as home building is deemed an essential business activity. We estimate that approximately 90% of single-family units under construction are located in 'essential' states and 80% of apartment units are located in such states."

   

• David Stevens on Mark Calabria

  David Stevens on Mark Calabria

  The post David Stevens on Mark Calabria appeared first on National Real Estate Post.

• Mortgage Application Volume Shows Pipeline Control is Working

  Even though many were probably doing it on their phone or tablet while sitting at their kitchen tables, Americans were busy submitting applications to refinance their home last week. The Mortgage Bankers Association (MBA) said that its Market Composite Index, a measure of mortgage loan application volume, driven by refinancing, increased 7.3 percent on a seasonally adjusted basis during the week ended April 10 and 7.0 percent on an unadjusted basis. The index had declined 18 percent a week earlier. The Refinance Index increased 10 percent from the previous week and constituted 76.2 percent of all applications during the week, up from 74.2 percent during the week ended April 3. The Refinancing Index was 192 percent higher than the same week in 2019.

   

• Builder Confidence Utterly Decimated by Coronavirus

  The National Association of Home Builders (NAHB) said its Housing Market Index (HMI), which it sponsors jointly with Wells Fargo, suffered the largest monthly change in its more than 30-year history this month, plunging 42 points from March to a 30 reading. It was the lowest the index, which measures its member's perceptions of the new home market, has been since June 2012 and the first time the index has fallen into negative territory (below 50) since June 2014. To construct its index, NAHB surveys its new home builder members, asking them for their perceptions of current single-family home sales and their expectations for those sales over the next six months as "good," "fair" or "poor." It also asks builders to grade current buyer traffic as "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

   

• Implode-O-Meter Inventor Talks Reverse and COVID19

  Implode-O-Meter Inventor Talks Reverse and COVID19 GET to Martin HERE

  The post Implode-O-Meter Inventor Talks Reverse and COVID19 appeared first on National Real Estate Post.

• Black Knight's Deep Dive Part 3: How Housing and Mortgages Move On

  In this third article summarizing an analysis by Black Knight of the potential impacts of the COVID-19 pandemic housing the company looks at mortgage defaults and servicing. It also reviews some of the actions that have already been taken to curb potential harm to housing and makes suggestions about ways technology can be of help. Part 1 of this series can be read here and Part 2 here. Layoffs and business closures have sent unemployment claims soaring by an aggregate of more than 17 million over the last three weeks and will certainly have an impact on mortgage delinquencies. FHA and the GSE's Fannie Mae and Freddie Mac quickly directed servicers to make forbearance available to distressed borrowers and the $2 billion Federal CARES Act will provide funds that may help homeowners with mortgage payments. It also codifies the forbearance directives as well as eviction moratoria. Forbearance, however, may have unforeseen impacts on servicers' - particularly non-bank servicers - ability to make principal and interest advance payments to investors. Since Black Knight wrote this, Ginnie Mae has stepped forward to announce it will advance funds to issuers for this purpose, but servicers for private label securities and for the GSEs appear to be still at risk.

   

• Nearly 2 Million Forbearances Already

  The Mortgage Bankers Association (MBA) says the surge in unemployment claims filed since mid-March resulting from the mitigation efforts to slow the spread of COVID-19 are straining household budgets. Mortgage servicers are continuing to field hundreds of calls from these homeowners who are seeking temporary forbearance from their mortgage payments.

  MBA says its latest Forbearance and Call Volume Survey shows that the percentage of loans that have been granted forbearance jumped to 3.74 percent of all mortgages during the week of March 30 to April 5, 2020 from 2.73 percent the week before. During the week of March 2, before the extent of the pandemic became clear, only 0.25 percent of mortgages were in forbearance.

• Freddie Cautiously Optimistic as Housing Market Shows Resilience

  Freddie Mac's Quarterly Forecast is more upbeat than one might expect. While it acknowledges that, with big chunks of the U.S. economy currently in lockdown the housing market faces "its greatest challenge in over a decade," it seems to assume its duration could perhaps be limited, with the recovery starting in the third quarter of the year. It does hedge this, admitting that the contours of the pandemic and thus the recovery from it seem to vary from country to country so forecasting is even more uncertain than usual. Even if the recovery does take off, with most of the damage contained in the first half of this year, it will probably take another year for things to return to normal.

   

• Politics Hammer the Underserved

  Politics Hammer the Underserved

  The post Politics Hammer the Underserved appeared first on National Real Estate Post.

• Millennials and How They've Changed Housing

  Millennials have lagged most of their predecessor generations in terms of their homeownership rate but when they did begin to buy, they become the fastest growing market segment. The Census Bureau says the homeownership rate for those 25 to 34 years of age increased from 36.5 percent in the fourth quarter of 2018 to 37.6 percent 12 months later. The group also earns more than any young adult households in the last 50 years with a median household income of $69,000. Who knows where either measure will go given the current crisis, but CoreLogic has examined Millennial's impact on housing and found four areas where their housing choices are, or at least were, shaping the market.

   

• Ginnie Mae Will Advance Investor Payments on Non-Current Loans

  The list of things for the housing industry to worry about in the current COVID-19 emergency has been growing steadily over the last few weeks, but a memo from Ginnie Mae may have eased one of those concerns. Seth Appleton, Ginnie Mae's Principal Executive Vice President has advised Ginnie Mae participants that the agency has invoked a revised version of the Pass-Through Assistance Program ("PTAP"). The Coronavirus Aid, Relief and Economic Security (CARES) Act, passed by Congress several weeks ago, mandates forbearance (temporary reprieve from payments) be available for borrowers with federally backed mortgages who are financially impacted by the emergency which has resulted in massive unemployment. The Act also imposes a 60-day moratorium on foreclosures starting on March 18, 2020.

   

• Appraisers Getting Shut Down

  Appraisers Getting Shut Down

  The post Appraisers Getting Shut Down appeared first on National Real Estate Post.

• Realtors Think Sales are Deferred, Not Lost

  Realtors don't expect the 2020 "spring market" is going to happen, but they are optimistic there will be a post-pandemic rebound driven by delayed demand. The National Association of Realtors® (NAR) found, through an Economic Pulse Flash Survey, that 59 percent of its members feel buyers are merely delaying home purchases for a few months while a similar number (57 percent) said sellers are doing the same with listings. NAR Chief Economist Lawrence Yun said, "Home sales will decline this spring season because of unique economic and social consequences resulting from the coronavirus outbreak, but much of the activity looks to reappear later in the year. Home prices will remain stable because of a pandemic-induced reduction in inventory coupled with less immediate concerns over foreclosures."

   

• Fannie Freddie Drop Bomb on Servicers

  Fannie Freddie Drop Bomb on Servicers

  The post Fannie Freddie Drop Bomb on Servicers appeared first on National Real Estate Post.

• Homebuyer Sentiment Takes a Nosedive in March

  American's attitudes regarding buying and selling homes and about their own financial outlook made an abrupt U-turn last month and Fannie Mae's Home Purchase Sentiment Index (HPSI) wiped out more than three years of gains. The index, a distillation of responses to six questions from the monthly National Housing Survey (NHS) lost 11.7 points, falling to 80.8 in March. Five of the six index components declined both from February and compared to March 2019, with four falling from the earlier surveys by double digits. This sent the HPSI falling to its lowest reading since December 2016 and down 9.0 points since March 2019. One of the most resilient components of the index has been the question regarding job security. Respondents who say they are not concerned about losing their job has consistently stayed in the upper 80 percent range for several years. In March it dropped to 77 percent and net positive responses plummeted 18 percentage points to 54 percent.

   

• Is a GSE Bailout on the Way?

   Is a GSE Bailout on the Way?

  The post Is a GSE Bailout on the Way? appeared first on National Real Estate Post.

• After Blockbuster February, Home Prices Face Uncharted Territory

  Home price gains accelerated for the fourth straight month in February with a 4.1 percent annual increase in the CoreLogic Home Price Index (HPI) The 12-month rate of appreciation in January was 4.0 percent. The company said home prices nationwide, including distressed sales, rose 0.6 percent from January to February, up from growth of 0.1 percent the previous month. "Before the onset of the pandemic, the quickening of home price growth during the first two months of 2020 highlighted the strength of purchase activity," said Dr. Frank Nothaft, chief economist at CoreLogic. "In February, the national unemployment rate matched a 50-year low, mortgage rates fell to the lowest level in more than three years and for-sale inventory remained lean, all contributing to the pickup in value growth."

   

• Forbearance Explosion Beginning to Hit Mortgage Market

  Homeowners who are either already feeling the financial effects of COVID-19 or anticipate it will happen are being proactive in requesting help from their lenders. A survey conducted by the Mortgage Bankers Association among mortgage services found that requests for temporary forbearance has exploded since the first of March. The percentage of total mortgages in forbearance grew from 0.25 percent on March 2 to 2.66 percent by April 1. Loans backed by Ginnie Mae saw the greatest growth, increasing from 0.19 percent to 4.25 percent. Independent mortgage bank (IMB) servicers now have the largest share of loans in forbearance (3.45%), reflecting their focus on Federal Housing Administration (FHA) and Veterans Affairs (VA) home loan programs, and serving low-to moderate income borrowers. The share for bank servicers was 2.75 percent.

• Low Rates Could Mitigate Some COVID Damage

  Black Knight has done an early analysis of the potential impacts of the COVID-19 pandemic on the housing market. In our summary of the first part of their paper we looked at the condition of the housing market in the early part of the year, before the full extent of what might be coming was evident. It was a market in which delinquencies were at near record lows, construction was picking up, home sales were strong, homeowners were sitting on high levels of equity, and lenders were in the midst of a refinance boom. Then as concerns and uncertainty over the virus began to emerge, so did unusual volatility in the secondary market and consequently in interest rates, to the point where the Federal Reserve stepped in with a round of quantitative easing.

  Black Knight then looked toward the probable effects on other housing segments starting with home sales. As of mid-March 2020, low interest rates had pushed home affordability to a three-year high. This drove up demand for what was already limited inventory and home prices reaccelerated. However, interest rate volatility in recent weeks has had a whipsaw effect on affordability as well as overall purchase demand.

  vicing. It also reviews some of the actions that have already been taken to curb potential harm to housing, and makes suggestions about ways technology can be of help

• Mortgage Applications Retreat as Covid Weighs on Markets

  The negative effects of the COVID-19 epidemic appear to have set in last week as mortgage applications, which had managed to increase even after much of the nation's business shut down, tumbled. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of loan application volume, declined 17.9 percent on a seasonally adjusted basis during the week ended April 3, and 18 percent lower on an unadjusted basis. The Refinance Index decreased 19 percent but was still 144 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 74.2 percent of total applications from 75.9 percent the previous week. Purchase mortgage applications declined by 12 percent on both an adjusted and an unadjusted basis from the week ended March 27. The Purchase Index level was 33 percent lower than during the same week in 2019.

   

   

• Realtors – Have Serious Talks with Your Lenders

  Realtors – Have Serious Talks with Your Lenders

  The post Realtors – Have Serious Talks with Your Lenders appeared first on National Real Estate Post.

• Covid-Related Job Losses Hit Residential Construction

  The Jobless Claims Report and the Employment Situation Report and were both pretty devastating last week with more than 6 million new unemployment claims filed on top of 3 million the prior week and 701,000 jobs lost. The unemployment rate jumped nearly a full point to 4.4 percent. Jing Fu, writing in the National Association of Home Builders (NAHB) Eye on Housing Blog, says the residential construction industry received its fair share of the pain. Employment in residential construction had been doing well, it was up by 24,100 in February, but that reversed in March, undoubtedly due to impacts from the COVID-19 pandemic, and 4,300 jobs were lost. The total loss across all construction categories was 29,000 jobs. Those losses, however, paled in comparison to the massive ones in the leisure and hospitality industry as hotels shut down, restaurants closed, and cruises were cancelled. Three other job categories also pulled back more dramatically than construction.

• Rob Chrisman – A Lesson in Execution

  Rob Chrisman – A Lesson in Execution Rob Chrisman Daily News & Commentary

  The post Rob Chrisman – A Lesson in Execution appeared first on National Real Estate Post.

• Black Knight's Deep Dive on Housing, Mortgages, and COVID

  Black Knight has taken what will probably prove to be only their first in-depth analysis of the potential effects of the COVID-19 pandemic on the economy and specifically on the U.S. housing and mortgage markets. The paper looks at the current state of the market, key drivers of the pandemic on the housing and mortgage industries and models some possible outcomes. We are extremely pleased that they have used mortgage rate information from MortgageNewsDaily for some of their calculations. Because it is their business, Black Knight, also makes a lot of recommendations as to how technology can mitigate some of the most dramatic impacts. The company notes that the situation at present is incredibly fluid and dynamic, "and underlying facts and assumptions in this report may need to be revisited as the true global, national and local impacts of the COVID-19 pandemic, and the nation's response, become more clear. There are, at present, far too many unknowns to have any true certainty regarding forecasted impacts."

   

• Be YOU This Weekend – Coach Bill Hart

  Today we have a chat with Coach Bill Hart.  If you’re not familiar with Coach Bill, get familiar.  He has a wonderful way of getting your head in the right space. CoachBillHart.com BuildingChampions.com

  The post Be YOU This Weekend – Coach Bill Hart appeared first on National Real Estate Post.

• HUD Says First Relief Funds are on the Way

  The Department of Housing and Urban Development (HUD) has announced how it will be allocating its initial portion of funds from the massive Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress last week. Over $3 billion will be awarded through the Department's Community Development Block Grant, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS programs. HUD Secretary Ben Carson said use of the existing grant formulas will allow funds to be awarded quickly. They will be accompanied by new guidance that cuts red tape so grantees can quickly help their communities. Two billion of the funds will go to states, communities, and non-profit organizations for the following...

• (Home) Building our Way out of Crisis

  Home building might be the answer to more than just the housing shortage according to some information provided by Paul Emrath, economist for the National Association of Home Builders (NAHB). He maintains that it can also be a significant factor in rebuilding the economy once the COVID-19 crisis ends. Emrath has updated NAHB's 2014 estimates of the economic impact that residential construction has on the U.S. economy, especially via the number of jobs it creates. Nationally he estimates that building an average single-family home creates 2.90 full-time equivalent (FTE) jobs. Full-time equivalency is enough work to keep one person employed for a full year. This work generates $189,000 in wages and salaries and $110,957 in taxes.

   

• How One Top Realtor is Thriving in the COVID19 Shutdown

  How One Top Realtor is Thriving in the COVID19 Shutdown CLICK HERE TO GO TO TONY RAY’S WEBSITE!

  The post How One Top Realtor is Thriving in the COVID19 Shutdown appeared first on National Real Estate Post.

• Single-Family, Public Construction Spending on Upswing

  Nationwide outlays for construction slipped slightly in February. The Census Bureau said public and private sources spent at a seasonally adjusted annual rate of $1.367 trillion on all forms of construction, down 1.3 percent from the rate in January. This was 6.0 percent more than was expended in February 2019. The total spent during the month on a non-adjusted basis was $96.999 billion, up slightly from the $96.462 billion spent in January. For the year-to-date (YTD) spending totals $193.460 billion, an increase of 8.2 percent from the first two months of 2019. Privately funded projects were funded at a seasonally adjusted annual rate of $1.026 trillion, down from $1.039 trillion in January, a 1.2 percent decline. That spending rate, however, is 5.6 percent higher than the rate in February of last year. Non-adjusted spending rose from $74.764 billion in January to $75.091 billion in February and is 7.4 percent higher YTD.

   

• The Forbearance Dilemma and the Proposed FNMA FHLMC Deferral Option

  Today we speak with NAMB President Rocke Andrews and Homebridge Financial Services CEO Peter Norden about “The Forbearance Dilemma and the Proposed FNMA FHLMC Deferral Option”

  The post The Forbearance Dilemma and the Proposed FNMA FHLMC Deferral Option appeared first on National Real Estate Post.

• Mortgage Apps Defy Coronavirus Woes and Post a 15% Increase

  Well this was a surprise. In a week when unemployment claims soared to the highest level in probably ever and several large states went into a COVID-19 induced lockdown, the Mortgage Bankers Association (MBA) announced a significant increase in mortgage application volume. MBA's Market Composite Index, a measure of that volume, which had dropped like a rock (-29.4 percent) during the week ended March 20, bounced back by 15.3 percent on a seasonally adjusted basis and 15.0 percent unadjusted during the week ended March 27. While application volume was up, purchase mortgage applications fell, down 11 percent from the previous week on an adjusted basis and 10 percent before adjustment. The unadjusted index was 24 percent below the same week in 2019. It was the largest drop in the Purchase Index in a non-holiday impacted week since at least 2013.

   

• Lessons From Great Recession Wall Street Buying Spree

  In an earlier article, (before more pressing issues shelved the topic) we summarized highlights from a recent New York Times Magazine article about the ownership of a large share of the nation's single-family rental stock by institutional investors. Part 1 recapped how private equity funds moved to purchase distressed single-family homes during the housing crises, turning it into rental stock. Their property management has been uneven, and tenants are suffering from significant financial abuses. The author, Francesca Mari, who tells much of the story through the eyes of Chad who is now renting the home he used to own, says the extent of the financial repercussions from Wall Street's investment are not limited to the rapid rent increases and unfettered fees we pointed to in the first article. The institutional owners are not always maintaining property, failing to make needed repairs, or making them as cheaply as possible. Some of the neglect has begun to manifest itself in health issues such as black mold induced allergies.

   

• Barry Habib – Fed Backing Down on MBS Purchases

  Barry Habib – Fed Backing Down on MBS Purchases

  The post Barry Habib – Fed Backing Down on MBS Purchases appeared first on National Real Estate Post.

• An over-simplified explanation regarding what’s going on in the mortgage industry.

  This show brought to you from our good friends at theREsource.tv An over-simplified explanation regarding what’s going on in the mortgage industry.

  The post An over-simplified explanation regarding what’s going on in the mortgage industry. appeared first on National Real Estate Post.

• What's Being Done to Prevent Forbearance From Crushing The Mortgage Industry?

  Among responses to the job losses and reduced income already emerging from the COVID-19 pandemic has been a moratorium on foreclosures and a requirement, coming from many quarters, that servicers offer mortgage borrowers an extended period of forbearance from their mortgage payments. This has raised an issue regarding the liquidity of those servicers. Late last week Treasury Secretary Steven T. Mnuchin announced formation of a task force to focus on mortgage liquidity problems and has given them until March 30 to present their recommendation. The Mortgage Bankers Association (MBA) outlined the servicers' potential forbearance problem in a March 20 letter to Mnuchin and Federal Reserve Chairman Jerome H. Powell. Under contracts with investors who purchase mortgage-backed securities (MBS), servicers are obligated to forward principal and interest payments on those securities to the investors even if borrowers fail to make their payments. Services are also obligated to pay property taxes and insurance premiums. The guarantors of those loans, FHA,  the VA, and the GSEs Fannie Mae and Freddie Mac, eventually repay the advances, but the delay can cause liquidity problems.

   

• Solid Home Price Gains Continued into January Ahead of Coronavirus Pandemic

  Home prices entered 2020 still on the uptick according to the S&P CoreLogic Case-Shiller indices. The U.S. National Home Price Index, which covers all nine U.S. census divisions, reported a 3.9 percent annual gain in January. The year-over-year increase in December was 3.7 percent. There was no monthly change in the non-seasonally adjusted (NSA) index from December to January, but after adjustment the National Index was up 0.5 percent. The 10-City Composite Index posted a 2.6 percent annual gain, up from 2.3 percent in December and the 20-City Composite rose 3.1 percent, a 0.3-point greater increase than the month before. The 10-City measured eked out  0.1 percent monthly growth while the 20-City was flat on a non-adjusted basis. Both indices moved 0.3 percent higher after adjustment. Ten of the 20 cities posted monthly appreciation on an unadjusted basis, 18 of them did so when adjusted.

   

• Virtual Coffee Appointments Fruitful for Loan Officers

  Virtual Coffee Appointments Fruitful for Loan Officers

  The post Virtual Coffee Appointments Fruitful for Loan Officers appeared first on National Real Estate Post.

• Pending Home Sales Are Robust Prior to Shutdown

  Pending home sales, which jumped 5.2 percent in January, did not retrench as expected last month. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) grew 2.4 percent to a reading of 111.5 in February. The PHSI is a forward-looking indicator based on signed contracts for purchase of existing single-family homes, townhomes, condos, and cooperative apartments. The February index level is 9.4 percent higher than a year earlier. After its unusually large gain in January, the index was expected to move lower. Analysts polled by Econoday had a very wide range of forecasts, from -2.5 percent to 5.0 percent with a consensus for a 1.6 percent decline.

   

• Total Clarity on FHA/VA Loan Status with David Stevens

  Today past MBA President David Stevens gives us total clarity on what’s going on with FHA/VA loans.

  The post Total Clarity on FHA/VA Loan Status with David Stevens appeared first on National Real Estate Post.

• CFPB Empowers Fannie/Freddie to Overcome Lockdown Woes

  Flexibility seems to be the keyword as government agencies try to adjust to a lot of new realities. The Federal Housing Finance agency has already empowered the GSEs (Fannie Mae and Freddie Mac) to be flexible about obtaining appraisals, verifying borrower credit factors, and working with distressed borrowers. Now the Consumer Financial Protection Bureau (CFPB) says it is "providing needed flexibility to enable financial companies to work with customers in need as they respond to the COVID-19 pandemic." "As consumers seek temporary relief from lenders, the pandemic is impacting the operations of financial companies that are eager to help their customers during this unprecedented time," said CFPB Director Kathleen L. Kraninger.  "Our actions today are temporary and targeted to support consumers by allowing financial companies to focus their resources on assisting consumers."

   

• Refinances Dominated Freddie Mac Volume in February

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 5.5 percent in February, up from a 4.3 percent gain in January.  The portfolio balance at the end of the period was $2.350 trillion compared to $2.339 trillion at the end of January and $2.190 trillion a year earlier. The growth rate for the year to date is 4.9 percent. Purchases and Issuances totaled $46.054 billion and Sales were ($1.041) billion. The January numbers were $47.606 billion and ($.253) billion respectively. 

   

• EPO Challenges May Take Their Toll

  EPO Challenges May Take Their Toll more on some segments of the origination space than others.  Today we talk with Clayton Collins – CEO of Housingwire about some one of the myriad of issues we have right now in the mortgage and real estate space.

  The post EPO Challenges May Take Their Toll appeared first on National Real Estate Post.

• NAMB Rules and iBuyers are GONE

  The National Association of Mortgage Brokers (NAMB) has send a critical letters to all US Governors asking to make mortgage pro’s “essential businesses” right now.  iBuyers?  Who?

  The post NAMB Rules and iBuyers are GONE appeared first on National Real Estate Post.

• Mortgage Apps Rocked by COVID; Hard Hit Areas Paint Gloomy Picture

  The volume of mortgage applications plummeted last week as households, rattled by COVID-19 fears, self-isolated in their homes and businesses were shuttered in the hardest hit states or scurried to shift operations to their employees' homes. In the midst of it all, mortgage rates also rose significantly.

  The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, decreased 29.4 percent on a seasonally adjusted basis during the week ended March 20 and was down 29 percent before adjustment.

  Refinancing volume, which had risen an aggregate of more than 100 percent in the weeks ended February 28 and March 6, fell for the second straight week, losing 34 percent last week alone. As an indication of how frenetic recent business has been, however, refinancing activity was still 195 percent higher than the same week last year and accounted for 69.3 percent of last week's applications. The refinancing share during the week ended March 13 was 74.5 percent.

• Annual Home Price Gains Up 5.2% in January

  The pace of annual price increases ticked slightly higher in January according to Federal Housing Finance Agency (FHFA) House Price Index (HPI). The index, which had marked a 5.1 percent year-over-year gain, in December, rose by 5.2 percent in January. The monthly increase was down significantly, however. While the original December increase of 0.6 percent was revised to 0.7 percent, the December to January appreciation was only 0.3 percent. Compared to December, prices declined in two of the nine census divisions. Prices ticked down 0.2 percent in the Mountain division and 0.1 percent in the West North Central. The highest increase, 0.7 percent, was in the South Atlantic followed by the Pacific division at 0.5 percent.

   

• Fannie Freddie Streamline Appraisals

  Fannie Freddie Streamline Appraisals in an effort to keep things going.  Stimulus package gets stalled but the Fed keeps MBS healthy.  Non-QM?  Is it really gone? CLICK HERE for GSE Letter  

  The post Fannie Freddie Streamline Appraisals appeared first on National Real Estate Post.

• Housing Agencies Moving Quickly to Offer "Flexibilities" After Coronavirus

  Fannie Mae has issued a series of three lender letters dealing with changes in appraisals, originations, and servicing protocols in response to the COVID-19 national emergency. Fannie Mae indicates that similar letters will be forthcoming from Freddie Mac under guidance from the Federal Housing Finance Agency (FHFA).

  The letter regarding appraisals, (LL-2020-04) allows the use of exterior only appraisals and Desktop appraisals where complete interior and exterior appraisals cannot be obtained due to virus fears. If a traditional appraisal is not obtained and there is insufficient information about the property for an appraiser to be able to complete an appraisal assignment with a desktop or exterior-only inspection appraisal, the loan will not be eligible for delivery to Fannie Mae.

• New Home Sales Remain Near Post Crash Highs

  Sales of newly constructed home jumped to a 13-year high of 764,000 annualized units in January, a number that was revised even higher today to 800,000. Given that increase, it was expected that there would be a bit of a pullback in February. Sales in February did decline by 4.4 percent according to Tuesday morning's report from the U.S. Census Bureau and the Department of Housing and Urban Development. Even so, they came in higher than the most optimist forecast. Homes sold at a seasonally adjusted annual rate of 765,000 units during the month, an increase of 14.3 percent year-over- year. The range of forecasts from analysts polled by Econoday was 690,000 to 764,000 units with a consensus of 743,000.

   

• CFPB Doing Their Part to Help

  CFPB Doing Their Part to Help and more today.  The treasury is looking to help small businesses by offering forgivable payroll loans up to 250%.  This could help a lot of businesses, including real estate and mortgage shops keep going.

  The post CFPB Doing Their Part to Help appeared first on National Real Estate Post.

• January Foreclosure Starts Fall to Survey Lows

  Loan performance overall continues to validate the perceived quality of recent loan vintages and delinquency metrics continue to test and break old records. Foreclosure starts were down 20 percent in January 2020 compared to a year earlier, just one of the further improvements noted in Black Knight's "first look" at January/February data. Starts numbered 32,300, which was 24.5 percent lower than in December. It was the lowest level of foreclosure starts since Black Knight began reporting it exactly 20 years earlier.

   

• Pre-COVID Home Sales Numbers Will Remind us Of the Good Times

  
  Who knows what tomorrow will bring? At least for today we have some welcome good news from the National Association of Realtors® (NAR). Existing home sales, which declined slightly in January, enjoyed a spring-market explosion in February. NAR said sales of pre-owned single-family houses, town houses, condos, and cooperative apartments rose 6.5 percent compared to the previous month. Sales were at a seasonally adjusted annual rate of  5.77 million units compared to 5.46 million in January and were 7.2 percent higher than the 5.38 million rate in February 2019. It was the eighth straight month that sales were higher on a year-over-year basis. price in the West was $410,100, an 8.1 percent rate of appreciation.

• This Market is Why it Matters to Get Involved in Your Industry

  This Market is Why it Matters to Get Involved in Your Industry.  Remember when things went sideways back in 2008/2009?  Remember how the mortgage brokerage channel took the brunt of the political abuse?  Mortgage brokers were almost wiped off the map.  Over the past 4 years they have come back, in large part because of […]

  The post This Market is Why it Matters to Get Involved in Your Industry appeared first on National Real Estate Post.

• Technology is Helping Lenders Shorten Closing Timeline

  A 10-basis point drop in the average interest rate of closed loans drove up the share of refinances in February. Ellie Mae's Origination Insight Report said the average rate for all loans closed on its system was 3.86 percent during the month while conventional loans dipped from 4.03 percent to 3.89 percent and FHA loans from 3.91 to 3.87 percent. The rate for VA loans declined 2 basis point to 3.62 percent. In response, the share of loans that were for refinancing increased from 46 to 48 percent. The distribution of loans across product types shifted slightly from January. Conventional loans gained 3 points to 74 percent of the total and FHA loans dropped from 16 percent to a 14 percent share. VA loans were unchanged, accounting for 8 percent of transactions.

   

• BREAKING: COVID-19 on Housing Facebook LIVE Today 12PM PT/3PM ET

  Join us today at 12PM PT/3PM ET for an exclusive Facebook live about COVID-19 and its effect on the Housing Industry.  This Facebook Live will feature Dr. Michael Roizen of the Cleveland Clinic, Barry Habib – CEO MBS Highway, Frank Garay & Brian Stevens – The National Real Estate Post, Ryan Hills – RESource.tv, Clayton […]

  The post BREAKING: COVID-19 on Housing Facebook LIVE Today 12PM PT/3PM ET appeared first on National Real Estate Post.

• Residential Construction Remains Strong as it Awaits Coronavirus Impact

  As anticipated, the two major data sets in February's residential construction report declined from their January level but both construction permitting and housing starts maintained a significant edge over their performance in February 2019. Permits for residential construction were issued during the month at a seasonally adjusted annual rate of 1,464,000 units, 5.5 percent below the January rate of 1,550,000. The January estimate was revised only slighting, down about 1000 units. February permits were up 13.8 percent compared to a year earlier.

   

• FICO Being Investigated by Anti-Trust Committee

  The U.S. Department of Justice (DOJ) has launched a civil investigation into FICO Corporation. DOJ is apparently looking into claims that the company which provides credit scores for lenders, is guilty of exclusionary conduct that may have led to its market dominance. On its website the company claims its various credit scoring models have a 90 percent market share.vFICO released a statement on the weekend saying it was notified last Friday that DOJ's Antitrust Division had opened an investigation. It says it intends to cooperate fully and "looks forward to a constructive dialogue about the state of competition in our industry."

   

• Freddie Mac Suspends Foreclosures, Offers Additional Crisis Support

  Freddie Mac is invoking the same types of measures to protect homeowners in the face of the COVID-19 pandemic as it has previously taken in other natural disasters such as hurricanes. The company announced Thursday morning that it is suspending all foreclosure sales of properties securing its mortgages and evictions of borrowers living in homes owned by the company. That suspension is effective immediately and will extend to May 17, 2020. Freddie Mac said that period could be extended if the Federal Housing Finance Agency directs it.

   

• Shashank Shekhar Knows How to Handle High Volume

  Shashank Shekhar  – CEO of Arcus Lending Inc. is the No. 15 Lender in the country in 2019 closing 600 transactions for $235 million in volume.  Today we interview Shashank, who’s used to high volume, and learn how he originates so much business and how he manages it.  This is timely information for all of […]

  The post Shashank Shekhar Knows How to Handle High Volume appeared first on National Real Estate Post.

• Mortgage Application Volume Remains High Despite Rate Volatility

  After last week's report on a record-busting week for mortgage applications, with applications for refinancing surging 79 percent and mortgage volume up nearly 55 percent overall, one might expect that things would settle down a bit. What probably is surprising, as the country goes into virtual lock down over the coronavirus outbreak, is how strong activity remained. The Mortgage Bankers Association (MBA) reports that, during the week ended March 14, its Market Composite Index, a measure of mortgage application volume, decreased 8.4 percent on a seasonally adjusted basis and lost 8.0 percent on an unadjusted basis. This left the volume of business 168 percent higher than the same week in 2019.

   

• Builder Confidence Holds Steady as Virus Fears Shake Markets

  Builder confidence slipped slightly in March according to the National Association of Home Builders (NAHB), but there was one huge caveat. The monthly survey the association conducts among its new home builder members was partially (about 50 percent) complete prior to March 4. The mandatory shutdowns, and the worst of the stock market collapse had yet to happen. That said, the NAHB/Wells Fargo Housing Market Index fell two point this month to 72. NHBA notes that the index levels have held firm in the low- to mid-70 range for the last six months.

• Coronavirus Spread Led to Decline in February New Home Sales

  New home sales in February are expected to be down from January's levels based on loan application volume data reported by the Mortgage Bankers Association (MBA). Its Builder Application Survey (BAS) shows that applications for financing new home purchases dipped by 1 percent month-over-month but were 25.9 percent higher than in February 2019. These numbers are not adjusted to account for "typical seasonal patterns." Derived from application volume information and assumptions regarding market coverage and other factors, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 746,000 units in February, a 13.8 percent decline from January's sales rate of 865,000. On an unadjusted basis, the estimate is for 64,000 sales, 3 percent fewer than the 66,000 sales reported the previous month. 

• How to Triage Your Pipeline

  How to Triage Your Pipeline Ryan Hills: https://www.theresource.tv

  The post How to Triage Your Pipeline appeared first on National Real Estate Post.

• Ground Zero

  Ground Zero with Barry Habib and Ryan Hills.

  The post Ground Zero appeared first on National Real Estate Post.

• Only Worst-Case Virus Scenario will Result in Recession

  Fannie Mae's forecasts for the rest of 2020 took a bit of a hit from the pandemic panic. The company's Economic Developments report for March contains a downgrade to its earlier 2020 growth predictions from 2.2 percent to 1.8 percent. COVID-19 isn't the only villain in the picture, so is Saudi Arabia's decision to dramatically increase oil production as well as the resulting impacts from both on financial market volatility and consumer behavior. The company's Economic & Strategic Research (ESR) Group says these negative developments will shave about three-tenths of one percent from real gross domestic product (GDP) growth. However, updated data and an increase in the short-run forecast for residential fixed investment means, on net, first quarter growth has been revised down by only one-tenth to 1.8 percent.n January, a record low for that month.

• Crushing Mortgage Volume Can Be Managed

  Crushing Mortgage Volume Can Be Managed

  The post Crushing Mortgage Volume Can Be Managed appeared first on National Real Estate Post.

• COVID-19 Beginning To Affect Real Estate, But It's Not All Bad News

  Home sellers and potential buyers appear to be having a variety of reactions to the turmoil surrounding the COVID-19 virus with some even viewing it as an opportunity due to the lower interest rates. The National Association of Realtors® (NAR) conducted a flash survey on March 9 and 10 among its members to find how their customers were reacting. Realtors reported that there has been only minimal change in seller interest in selling and about 10 percent reported that the problem has affected the number of homes on the market. Among agents operating in California, about 14 percent say they have noticed a decrease and about 15 percent said this in Washington. Those two states have, thus far, had the higher number of confirmed COVID-19 cases.

• Negative Equity Falls to Pre-Recession Levels Thanks to Home Price Gains

  Homeowner equity jumped again in the fourth quarter of last year. CoreLogic's report said it found that, among homeowners with mortgages, about 63 percent of the total, an additional 5.4 percent accrued to their home equity, translating into an increase of about $7,300 in household wealth. The largest increase was in Idaho at $18,700. The nation's aggregate increase in equity from the 4^th quarter of 2018 through the 4^th quarter of 2019 was $489.4 billion. This does not include growth in equity among those homeowners without a mortgage.

   

• Lender Survey Predicts Continued Low Rates in 2020

  With the caveat that its Lender Sentiment Survey was conducted in February when the world was a very different place, Fannie Mae says mortgage lenders set several new highs with their optimistic outlooks for business in the first quarter. Fifty-one percent of lenders surveyed believe their profit margins would grow this quarter compared to Quarter 4 of 2019. Forty-four percent expected them to remain relatively flat. Only 4 percent were expecting profits to decline. Consumer demand was the primary reason for the optimism regarding profits. It was mentioned by 67 percent of respondents while operational efficiency, i.e. technology, was cited by 51 percent. Among the few who expected profits to decrease, competition (50 percent) and staffing costs (42 percent) were the leading reasons.

   

• Lenders Pulling Back the Throttle

  Lenders Pulling Back the Throttle

  The post Lenders Pulling Back the Throttle appeared first on National Real Estate Post.

• Loan Originators March to Washington DC

  Loan Originators March to Washington DC

  The post Loan Originators March to Washington DC appeared first on National Real Estate Post.

• Biggest Week-Over-Week Jump in Refi Applications... EVER!

  There was a nearly incomprehensible surge in mortgage applications during the week ended March 6 as mortgage rates hit near record lows. According to the Mortgage Bankers Association (MBA), while purchase applications had a better than average week, refinancing was at an 11-year high. MBA said its Market Composite Index, a measure of mortgage loan application volume, increased 55.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index rose by 54 percent.

   

• Wells Fargo Once Again in DOJ's Hot Seat

  Following a full committee hearing on Tuesday morning that featured Charles W. Scharf, Chief Executive Officer (CEO) and President of Wells Fargo & Company, the House Financial Services Committee (FSC) has asked the Department of Justice to review earlier testimony of one of his predecessors. In a letter to Attorney General William P. Barr, FSC Chair Maxine Waters (D-CA) said a year-long FSC staff investigation into Wells Fargo's compliance with five regulatory orders found that former Wells Fargo Chief Executive Officer Tim Sloan gave inaccurate and misleading testimony during a Committee hearing on March 12, 2019.  The letter continued, "Because this matter involves a potential violation of a federal criminal statute, I am requesting that the DOJ review Mr. Sloan's testimony along with the evidence presented in the enclosed copy of my staff's report and take such action as the DOJ deems appropriate."

   

• Wall Street's Investment into Housing has Unintended Consequences

  Unless you were involved in the housing industry or suffered the loss of your home, you probably didn't notice or have by now forgotten one of the most lasting effects of the Great Recession. As home prices plummeted and an estimated six million homes were lost to foreclosure or short sales, there was a massive influx of institutional investors into the rental market. According to Ian Formigle Chief Investment Officer of CrowdStreet, almost 83  percent of single-family rental residences were owned by individual, so-called mom and pop, investors in 2001, By 2015 that had dropped to about 75 percent as Wall Street firms gobbled up, per Zillow, 5.4 million single family homes between 2006 and 2017. This, by the way, was approximately the same time when the national homeownership rate declined from 69 percent to around 63 percent.

   

• Historic Increase in Mortgage Demand is Mitigated by Tighter Credit

  Mortgage credit availability declined last month, and the Mortgage Bankers Association (MBA) says it might be the result of too much of a good thing. MBA's Mortgage Credit Availability Index (MCAI) dipped 0.3 percent from January to February to a reading of 181.3. A decline in the Index indicates that lending standards are tightening. Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting said "Mortgage credit supply decreased in February, as both conforming and jumbo segments of the market saw a decline. There were also reductions in ARM program offerings, as well as in low credit score programs offered by investors." Added Kan, "Last month's activity was the calm before the storm. Mortgage rates dropped steeply in the last week of February and a large surge of refinance activity followed. Investors may adjust their future mortgage credit offerings based on the sudden upswing in demand."

   

• Barry Habib on LO Best Practices in Current Environment

  Barry Habib on LO Best Practices in Current Environment

  The post Barry Habib on LO Best Practices in Current Environment appeared first on National Real Estate Post.

• Income Gains are Keeping Potential Homebuyers in the Game

  Only one of the six components of Fannie Mae's Home Purchase Sentiment Index (HPSI) posted a net gain in February, but the increase in the numbers of respondents who reported significantly higher income almost offset the other declines. The HPSI dipped a half point compared to January to 92.5 but remains close to its all-time high of 93.8. Year over year, the HPSI is up 8.2 points. Fannie Mae says this reflects in part consumers' more favorable mortgage rate expectations, despite that index component moderating this month.

   

• iBuyers Getting the Squeeze in this Market

  iBuyers Getting the Squeeze in this Market

  The post iBuyers Getting the Squeeze in this Market appeared first on National Real Estate Post.

• Holy Interest Rates Batman

  Holy Interest Rates Batman

  The post Holy Interest Rates Batman appeared first on National Real Estate Post.

• When it Comes to Housing, Millenials and The Greatest Generation Finally Agree on Something

  The National Association of Realtors® (NAR) said its latest study on generational trends in homeownership has found that some homebuying characteristics of younger millennials are very similar to those of the silent generation. NAR's 2020 edition of its Home Buyer and Seller Generational Trends report found that, despite the age gap between the two group-the silent generation could be the great grandparents of the younger cohort-the two are likeminded in terms of buying preference. For both groups, proximity to friends and family was a major part of their home buying decision. Slightly more than half (53 percent) of the younger group, homebuyers between the ages of 22 to 29 listed this as a major consideration in picking a neighborhood, identical to the share of those in the 74 to 94 age group. For a third of the older group, living closer to family and friends was the primary reason for selling their home. In previous surveys the top rationale has been relocating for work or retirement.

   

• The Fate of the CFPB

  The Fate of the CFPB

  The post The Fate of the CFPB appeared first on National Real Estate Post.

• Barry Habib Covers Corona Rate Cut by Fed

  Barry Habib Covers Corona Rate Cut by Fed

  The post Barry Habib Covers Corona Rate Cut by Fed appeared first on National Real Estate Post.

• Low Rates and Rising Income Boosted Home Price Growth in January

  Home prices nationwide accelerated on an annual basis by 4.0 percent in January according to CoreLogic's Home Price Index (HPI). Annual appreciation has been trending higher since May as falling interest rates fueled demand. Month-over-month gains slowed to 0.1 percent in January, down from an 0.3 percent increase in December and 0.5 percent in November. CoreLogic's chief economist Dr. Frank Nothaft said, "January marked the third consecutive month that annual home price growth accelerated in our national index, as low mortgage rates and rising income supported home sales. In February, mortgage rates fell to the lowest level in more than three years, which likely will spur additional home shopping activity and price appreciation."

   

• Epic Refi Boom Gets Even Crazier as Rates Crush All-Time Lows

  Interest rates fell along with the stock market last week as fears about the economic impact of COVID-19 sent investors fleeing to the safety of U.S. Treasuries. Applications for refinancing surged again, but purchase applications did not respond to the lower rates. The Mortgage Bankers Association's (MBA) Market Composite Index jumped 15.1 percent on a seasonally adjusted basis during the week which ended  February 28. The results for the prior week had included an adjustment to account for the Presidents' Day holiday. On an unadjusted basis the Index rose 29 percent.

• Big Changes to Facebook Marketplace Marketing

  Big Changes to Facebook Marketplace Marketing

  The post Big Changes to Facebook Marketplace Marketing appeared first on National Real Estate Post.

• There are 11.1 Million Refi Candidates, With $2.99B in Potential Savings

  With Freddie Mac's average rate for 30-year fixed-rate mortgages (FRM) hitting 3.45 percent late last week. Black Knight estimates, in its current Mortgage Monitor, that there are now 11.1 million refinance candidates. These are homeowners who currently have a qualifying 720 FICO score, a loan-to-value (LTV) ratio of 80 percent on their existing mortgage, and a rate high enough that they could shave off at least 0.75 percent by refinancing. These homeowners could save an average of $268 per month, freeing an aggregate of $2.99 billion per month if all were to refinance. Those who took out a mortgage in 2018 remain the largest contingent in the refinancing pool at 1.67 million, but there are eight other vintages that have at least 500,000 potential refinance candidates. Black Knight says its credit criteria is conservative by design. Including those who might still refinance with more liberal underwriting, there are close to 22 million homeowners with rates more than 75 basis points higher than those prevailing at present.

   

• Residential Construction Spending Surged in January

  Privately funded construction gained 1.5 percent month-over-month, from a seasonally adjusted $1.008 trillion in December to $1.023 trillion in January. This was a 4.9 percent increase from the previous January. On a non-adjusted basis spending fell from $78.259 billion to $73.248 billion. Privately funding spending on residential construction was especially strong, rising from December by 2.1 percent on a seasonally adjusted basis to $554.785 and by 9.0 percent compared to the previous January. Single-family construction spending gained 2.8 percent and 9.6 percent compared to the two earlier periods to an annual rate of $298,787 billion. Multifamily spending was flat for the month at $57.253 billion and down 8.3 percent on an annual basis.

   

• To Lock or Not to Lock That is the Question

  To Lock or Not to Lock That is the Question

  The post To Lock or Not to Lock That is the Question appeared first on National Real Estate Post.

• A Closer Look at Housing Shortages on a State-Level

  Some time ago, Freddie Mac's Economic and Housing Research Group raised an alarm over a housing shortage, calling it a crisis and estimating that the country needs about 2.5 million additional housing units over the short to medium term to fill the gap. That was a national estimate. Now they are looking at conditions on the state level. In its initial analysis Freddie Mac pointed out that over the 40 years preceding the housing crisis (1968-2008) 39 of those years saw more housing construction than did 2017 when 1.25 million units were completed. Things have not improved substantially since then. The Census Bureau reported that, in January 2020 the rate of unit completions was 1.28 million.

   

• Home Equity Preferences as a Factor of Age and Race

  A recent post on the Urban Institute's (UI's) Urban Wire blog focuses on some overlooked data on FHA's Home Equity Conversion Mortgage (HECM) program. The program guarantees loans, commonly called reverse mortgages, for homeowners 62 years and older. These loans allow homeowners to withdraw the equity from their home, either in a lump sum or in monthly payments. The loan does not need to be paid back until the homeowner leaves or sells the house. UI analysts Karan Kaul, Laurie Goodman, and Sarah Strochak write that seniors are currently "sitting on a mountain of housing wealth" (estimated in 2017 at $3 trillion) and are anxious about their finances. Therefore, one might expect HECM to be a well-used program. But even as the number of older Americans has grown, participation in the program has dropped from 73,112 borrowers to 33,000 between 2011 and 2018.

   

• Refinances Dominated Freddie Mac January Volume

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 4.3 percent in January, a substantial change from the 15.2 percent gain in December.  The portfolio balance at the end of the period was $2.339 trillion compared to $2.331 trillion at the end of December and $2.184 trillion a year earlier. The growth rate for the year to date is 4.3 percent compared to 1.2 percent for the same period in 2019. Purchases and Issuances totaled $47,606 billion and Sales were ($.253) billion. The December numbers were $65.799 billion and ($.780) billion respectively. 

   

• Barry Habib on Coronavirus Effect on Rates

  Barry Habib on Coronavirus Effect on Rates

  The post Barry Habib on Coronavirus Effect on Rates appeared first on National Real Estate Post.

• Biden: Remove Racial Bias From Appraisals?

  Biden: Remove Racial Bias From Appraisals?

  The post Biden: Remove Racial Bias From Appraisals? appeared first on National Real Estate Post.

• New Home Sales Hit Highest Levels Since 2007

  New home sales had ended 2019 in a much stronger fashion than they had started the year. December sales were at an annual rate of 708,000 (a revision from the initial estimate of 694,000) and running more than 23 percent above sales a year earlier. With Wednesday's sales report from the U.S. Census Bureau and the Department of Housing and Urban Development it appears that at least this bull market is extending its run into 2020. New home sales during January were at a seasonally adjusted annual rate of 764,000 units, a 7.9 percent increase over December's revised number and 18.6 percent above the January 2019 estimate of 644,000 units. The increase was largely national in scope with big gains in the Midwest and West.

   

• Home Sales Crushed Expectations And Are Now Near a 2 Year High

  Pending home sales bounced back last month after an unexpectedly dismal performance ended the prior year. The National Association of Realtors^® said its Pending Home Sales Index (PHSI), which had dropped 4.9 percent to 103.2 in December, posted a 5.2 percent increase last month to a reading of 108.8. This is 5.7 percent higher than the Index in January 2019. The PHSI is a forward-looking index based on contracts for existing home purchases. It is generally expected to predict existing home sales over the next several months.

  pulation.

• Love Me or I Will Destroy You

  Love Me or I Will Destroy You

  The post Love Me or I Will Destroy You appeared first on National Real Estate Post.

• Home Prices are on the Upswing Again

  Both the S&P CoreLogic Case-Shiller home price indices and the Federal Housing Finance Agency's (FHFA's) House Price Index (HPI) for December provide more evidence that low interest rates have reignited the fire under home price appreciation. Case-Shiller's National Home Price Index, covering all nine U.S. census divisions, reported a 3.8 percent annual gain in December, up from 3.5 percent in the previous month. The 10-City Composite annual increase came in at 2.4 percent, up from 2.0 percent in in November, and the 20-City Composite jumped from a 2.5 percent gain the prior month to 2.9 percent.

   

• Mortgage Applications Calm Before The Storm?

  There was a new round of interest rate cuts during the week ended February 21, but consumers largely ignored the additional potential for refinancing. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage volume, increased by 1.5 percent from the previous week on an unadjusted basis, but was down 7 percent on an unadjusted basis. The increase in the adjusted index may have, in part, been because of an adjustment to account for the Presidents' Day Holiday which shortened the week.

   

• Quicken Moves Reverse Originators to Rocket

  Quicken Moves Reverse Originators to Rocket

  The post Quicken Moves Reverse Originators to Rocket appeared first on National Real Estate Post.

• Cheaper Construction Loans Mean More Custom Homes

  Builders are finding that acquisition, development, and construction (ADC) loans in the last half of 2019 were both easier to access and less costly. That may be, in part, behind a fourth quarter 2019 surge in custom home building. The National Association of Home Builders' (NAHB's) quarterly survey of its builder and developer members found that the average interest rate on ADC loans declined in Q4 from 6.39 to 6.13 percent on loans for land acquisition and from 6.31 to 5.94 percent on development loans. Loans for single family spec construction declined 36 basis points to 5.63 percent and from 5.63 percent to 5.38 percent for pre-sold homes. It was the second consecutive quarter in which rates for all four loan categories declined.

   

• The Elections Effect on Rates with Barry Habib

  The Elections Effect on Rates with Barry Habib

  The post The Elections Effect on Rates with Barry Habib appeared first on National Real Estate Post.

• Existing Home Sales Showing Resilience and Lots of Potential for 2020

  If it's January it must mean fewer home sales. That, at least, has been the recent pattern according to National Association of Realtors (NARs). Existing home sales have bounced up and down on a near monthly basis. Strong sales in December, they rose 3.6 percent month-over-month, were expected to result in a slowdown in January and they did. Sales of single-family homes, townhomes, condominiums, and cooperative apartments were at a seasonally adjusted annual rate of 5.46 million last month, down 1.3 percent from the 5.54 million pace in December. However, for the second straight month overall sales substantially increased on an annual basis, up 9.6 percent from the 4.98 million sales in January 2019. Single-family sales dipped 1.2 percent to an annual rate of 4.85 million from 3.91 million but were 9.7 percent above those a year ago.

• Housing Proposals by Dem Candidates

  Housing Proposals by Dem Candidates

  The post Housing Proposals by Dem Candidates appeared first on National Real Estate Post.

• New Home Sales, Prices Soar to Record Levels in January

  The Mortgage Bankers Association (MBA) said information from its January Builder Application Survey shows applications to finance new home purchases surged 40 percent from December and were 35.3 percent higher than in January 2019. This change does not include any adjustment for typical seasonal patterns.  Based on this data, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 865,000 units in January compared to 689,000 units the prior month. On an unadjusted basis the estimate is for 66,000 home sales up 37.5 percent from the 48,000 transactions in December. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. 

   

• Delinquencies are at Lowest Levels Since 2000

  Tighter underwriting and a strong economy seemingly continue to be reflected in mortgage loan performance. In its "first look" at January loan data, Black Knight says the national delinquency rate hit the lowest level since they began tracking it in 2000. The rate, 3.22 percent, represents a 5.4 percent decline from December and 14.2 percent year-over-year. The company says the annual figure shows that the rate of improvement in delinquencies has been picking up speed in recent months and this was the largest drop in more than a year.

   

• Another Consumer Sues Zillow

  Another Consumer Sues Zillow CLICK HERE for the Realtor Magazine Story

  The post Another Consumer Sues Zillow appeared first on National Real Estate Post.

• Lower Rates Helped Raise January Closing Rate

  The slight drop in mortgage rates in January stabilized refinance originations according to the January Origination Insight Report from Ellie Mae. The 3 basis point dip to an average rate of 3.96 percent kept the refinancing share of closed loans at 46 percent, unchanged from December. Conventional loan refinances increased from 53 percent in December to 55 percent in January, while the refinance share of VA and FHA loans declined by 4 and 3 percentage points respectively. Conventional loans accounted for 71 percent of all loans closed during the month, up 1 point. FHA's 16 percent share was 1 point lower than in December as was the 8 percent share of VA loans. Adjustable rate mortgages had a 6.3 percent share, up a point from December.

   

• The Battle to Kill Trigger Leads

  The Battle to Kill Trigger Leads

  The post The Battle to Kill Trigger Leads appeared first on National Real Estate Post.

• Fannie Mae Upgrades GDP, Many Housing Forecasts

  Fannie Mae says the U.S. economy appears to be sustaining itself despite both the problems faced by Boeing and the fears about the global impact of the coronavirus. The company's Economic and Strategic Research (ESR) group is upgrading its forecast for business fixed investment (BFI) in the second half of 2020 and beyond and have upgraded expectations for the GDP in both 2020 and 2021 by a tenth percent to 2.2 percent and 2.1 percent respectively. The company's economists also expect greater strength in every part of the housing market over the next 18 months.

  The group did substantially downgrade their annualized GDP forecast for the first quarter of this year from 2.3 percent to 1.9. They state that this does not reflect a change in their view of underlying growth but rather that expected government spending and housing construction were partially realized in the last quarter of 2019 and that the abnormal growth in net exports over the fourth quarter will be reversed. The 2^nd quarter forecast remains at 2.0 percent, but they expect considerable improvement in the second half of the year due to the aforementioned gains in BFI and net exports as Boeing resumes production of its grounded aircraft.

• Refi Applications Ebb, But The Boom Goes On

  Mortgage loan applications submitted during the week ended February 14 declined for the first time since mid-January. The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, decreased 6.4 percent on a seasonally adjusted basis compared to the week ended February 7. On an unadjusted basis, the Index lost 5 percent. The Refinance Index also fell for the first time in for weeks, decreasing 8 percent from the previous week. However, it was still 165 percent higher than the same week one year ago. Refinancing applications accounted for 63.2 percent of total applications, down from 65.5 percent a week earlier.

   

• A Sharp Increase in January Housing Permits Defies Predictions

  Residential construction data was mixed at the kick-off of the new year. Permits increased significantly while both housing starts and completions pulled back from December numbers. The U.S. Census Bureau and Department of Housing and Urban development reported that permits for residential construction were issued in January at a seasonally adjusted annual rate of 1,551,000. This is 9.2 percent higher than the December estimate of 1,420,000, revised from the 1,416,000 permitting rate originally reported. The uptick in permitting during January as well as in the fourth quarter of last year has boosted the rate 17.9 percent higher than in January 2019.

   

• iBuyer Growth Continues to Steamroll

  iBuyer Growth Continues to Steamroll

  The post iBuyer Growth Continues to Steamroll appeared first on National Real Estate Post.

• Builder Confidence Survey Shows Optimism is Still High

  Builder confidence dipped a notch in February but still remains at elevated levels. The National Association of Home Builders (NAHB) says its Housing Market Index (HMI) which it sponsored with Wells Fargo, edged 1-point lower to 74. Even with this change, the Index remains high. Readings over the last three months represent the most optimistic outlook on the part of builders since December 2017. The HMI is the result of a survey conducted by NAHB each month among its new home builder members. NAHB chief economist Robert Dietz said, "Steady job growth, rising wages and low interest rates are fueling housing demand in a market that lacks inventory, particularly at the entry-level. At a time when demand is on the rise, regulatory constraints along with a shortage of construction workers and a dearth of lots are hindering the production of affordable housing in local communities across the nation.

• Better.com CEO Slams Mortgage Brokers

  Better.com CEO Slams Mortgage Brokers CLICK HERE to see the CNBC story.

  The post Better.com CEO Slams Mortgage Brokers appeared first on National Real Estate Post.

• Proposed 2021 Budget Would Increase G-Fees

  The 2021 Federal Budget prepared by the White House is given little chance of passing Congress but there are a couple of provisions buried in the hundreds of pages of text that might be of interest to MND readers. One is a 10-basis point increase in g-fees, the guarantee fees the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac charge lenders for guaranteeing loans. The White House estimates the new fee will generate $34 billion over the next 10 years. The current fee averages about 55 basis points including a 10-basis point fee put in place in 2011 to fund the Temporary Payroll Tax Cut. Legislation enabling that fee will expire in 2021 and it is estimated to have generated $31 billion over the last ten years. What is unclear is whether the new fee would be in addition to the "temporary" fee or if it will be allowed to expire.

   

• Fannie/Freddie Report Growing Net Worth Under new Policy

  Both of the government sponsored enterprises (GSEs) posted strong earnings for the fourth quarter of 2019 as well as for the entire year. They are now reporting growing net worth after achieving revisions in the 2012 version of their agreement with the U.S. Treasury that allows them to retain their earning. Fannie Mae reported net income of $14.16 billion for 2019 and fourth quarter earnings of $4.37 billion. The annual income was down from $15.96 billion in 2018, but quarterly income was $402 million higher than that generated in Q3.

   

• Independent Mortgage Bankers Close 55% of All Deals

  Independent Mortgage Bankers Close 55% of All Deals CLICK HERE for the Housing Wire Article.

  The post Independent Mortgage Bankers Close 55% of All Deals appeared first on National Real Estate Post.

• Home Price Gains Picked Up Speed in Q4

  Inventory issues remain a major concern and are pushing home prices in urban America still higher. The National Association of Realtors'® (NAR's) quarterly report on metropolitan home prices says 170 or 94 percent of the 180 metropolitan statistical areas (MSAs) it tracks, posted appreciation in their median home price during the fourth quarter of 2019. Ninety-three percent had gains in the third quarter. The national median existing single-family home price was up 6.6 percent from the median of $258,000 a year earlier. The annual rate of appreciation was 5.1 percent in the third quarter.

   

• Q4 Mortgage Delinquencies Reach All-Time Low

  The fourth quarter report on mortgage delinquencies from the Mortgage Bankers Association (MBA) continues to show problem loans at historically low levels. MBA's National Delinquency Survey puts the seasonally adjusted delinquency rate at 3.77 percent of outstanding loans. This was a 20-basis point (bp) decline from the previous quarter and a 29 bps year-over-year improvement. Foreclosure starts were unchanged at a rate of 0.21 percent. "The mortgage delinquency rate in the final three months of 2019 fell to its lowest level since the current survey series began in 1979," said Marina Walsh, MBA's Vice President of Industry Analysis. "Mortgage delinquencies track closely to the U.S. unemployment rate, and with unemployment at historic lows, it's no surprise to see so many households paying their mortgage on time." 

   

• 11.2 Million Potential Refinances Ready Now

  11.2 Million Potential Refinances Ready Now

  The post 11.2 Million Potential Refinances Ready Now appeared first on National Real Estate Post.

• Realtors Say Legal Weed Biz a Plus For Housing

  It seems as though legalized marijuana is said to be good for almost everything. Now a new study from the National Association of Realtors (NAR) has added real estate to the list. The impact is clearer when it comes to commercial properties, but agents saw differences in the residential sector as well where medical and/or recreational use of the substance has been legalized.

  The NAR study, Marijuana and Real Estate: A Budding Issue (yes, NAR went there) grew out of a survey conducted with over 150,000 of its members, equally divided between those who operate in the commercial area (including building owners and managers) and those who practice residential real estate.

• Renters Mistakenly Believe They're Paying Less Than Owners

  Renters questions in a new Freddie Mac survey expressed a rather unfortunate misconception. In its new Profile of Today's Renter and Owner, the company said it found that "An unprecedented number of renters believe renting is more affordable than owning. Eighty-four percent of respondents stated that belief, up 17 percentage points from the February 2018 survey and an all-time high. However, the survey also found that 42 percent of renters paid more than one-third of their income on rent compared to 24 percent of homeowners who paid that much on their mortgage.

  With interest rates currently low, 40 percent of the survey's renters plan to purchase a home, and 46 percent of homeowners have plans to renovate in the next several months. Rates are inspiring other moves among owners; 29 percent plan to refinance and 27 percent would like to purchase a new home or an investment property.

• Refi Applications hit Seven-Year Highs on Coronavirus Fears, Lower Rates

  Applications for mortgage financing increased again during the week ended February 7 despite a significant decline in those for home purchases. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, rose 1.1 percent on a seasonally adjusted basis from one week earlier and 3 percent on an unadjusted basis. MBA's Purchase Index dropped by 6 percent on a seasonally adjusted basis compared to the week ended January 31 although it eked out a fractional gain on an unadjusted basis. The unadjusted Purchase Index was, however, 16 percent higher than during the same week in 2019.

   

• Low Housing Inventory Puts the Squeeze on Purchase Market

  Low Housing Inventory Puts the Squeeze on Purchase Market

  The post Low Housing Inventory Puts the Squeeze on Purchase Market appeared first on National Real Estate Post.

• Home Builders Report Much-Needed Residential Construction Job Gains

  Last Friday's January Employment Situation report from the Bureau of Labor Statistics was a good one; total payroll employment increased by 225,000, but probably no one was happier about it than the National Association of Home Builders (NAHB). The report was an excellent one when it comes to hopes for resolving one of the constraints NAHB seems as hurting its members; a shortage of construction workers. Residential construction employment rose by 20,200 in January. According to Jing Fu, writing in NAHB's Eye on Housing blog, this was the largest gain in the last 12 months. The total January increase in construction jobs, residential and nonresidential was 44,000.

   

• Preparing for the Crash?

  Preparing for the Crash?

  The post Preparing for the Crash? appeared first on National Real Estate Post.

• How Fragile is Affordability in Housing?

  It seems every data source in the housing industry has its own definition of affordability, most using a mortgage payment to income ratio based on median home prices and median incomes. While the National Association of Home Builders (NAHB) has an index that follows this profile, it has recently been rolling out its Priced-Out Estimates for the current year. These look at affordability from a slightly different perspective, showing how fragile affordability really is. In a series of articles in its Eye on Housing blog, various NAHB analysts run through combinations of scenarios to determine how many households lose the ability to buy a home as home prices rise or interest rates go up.

   

• Americans in 2020 are Increasingly Confident with Homebuying, Rates

  Fannie Mae's Home Purchase Sentiment Index (HPSI) is on a roll. The company's index, based on some of the results from Fannie Mae's National Housing Survey, increased for the third consecutive month in January and is 8.3 points higher than in January 2019. The HPSI rose 1.3 points to 93.0. The survey high, set last year, was 93.8. Four of the six index components rose month-over-month. The two that lost ground were down both from December and from a year earlier. The index's strongest component was the one measuring consumer opinion about the direction of interest rates. That component has been at a net negative reading for several years, indicating that most respondents expected rates to increase. While the net is still negative, 48 percent of respondents now expect rates to be stable over the next year. That has pushed the net to -26 percent, up 6 points from December and 27 points over the last year.

   

• Big Banks Coming Back to FHA?

  Big Banks Coming Back to FHA?

  The post Big Banks Coming Back to FHA? appeared first on National Real Estate Post.

• Lenders Continue to Shed Higher Risk Programs

  The availability of mortgage credit declined slightly last month. The Mortgage Bankers Association said its Mortgage Credit Availability Index (MCAI) dipped 0.2 percent to 181.9 in January. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.

  The MCAI has four components, the Conventional MCAI and its two sub-components were responsible for the January decline. The Conventional MCAI decreased 0.5 percent as its Jumbo components fell 0.3 percent and the Conforming MCAI moved 0.9 percent lower. These losses were partially compensated for by the Government MCAI which gained 0.4 percent.

• Keep a Close Eye on Rates – Barry Habib

  Keep a Close Eye on Rates – Barry Habib CLICK HERE to TRY MBS Highway

  The post Keep a Close Eye on Rates – Barry Habib appeared first on National Real Estate Post.

• Government Inconsistency With Student Debt Calculations is Preventing Homeownership. That Needs to Change.

  The Urban Institute (UI) says the five government mortgage lenders and their various ways of accounting for income-driven repayment (IDR) plans are inhibiting the ability of many potential homebuyers to buy a home. IDR plans are used by many student loan programs and require special handling in mortgage underwriting. The problem with an IDR arises in the calculation of the debt-to-income (DTI) ratio, the percentage of a borrower's income that is committed to debt service including payment on student loans. While there has recently been a little easing of what had been fairly rigid caps on DTI, higher ratios still limit a borrower's ability to get a mortgage or increase the cost of the loan.

   

• Zillow to be Licensed in All 50 States in 2020

  Zillow to be Licensed in All 50 States in 2020

  The post Zillow to be Licensed in All 50 States in 2020 appeared first on National Real Estate Post.

• How Lenders Plan to Find and Retain Customers (And How That Might Change)

  Almost 200 senior mortgage lenders told Fannie Mae about their plans to both acquire and keep customers through the company's Fourth Quarter Mortgage Lender Sentiment Survey. Mortgage lenders cited a number of channels and strategies and ranked them by their effectiveness.

  When questioned about channels, the most frequent response, cited by 67 percent of respondents, was their loan officers and their personal networks. Thirty-nine percent identified this as the most important channel. Partnering with real estate agents was second, mentioned by 56 percent of respondents, and third was the use of proprietary channels such as a website, direct mail/email, and social media accounts.

• Lower Rates Push Mortgage Applications to a Six-Year High

  Mortgage application volume continues to benefit from lower interest rates. The Mortgage Bankers Association (MBA) said today that its Market Composite Index, a measure of that volume, reached its highest level since May 2013 last week. The 5.0 percent gain in the seasonally adjusted index during the week ended January 31 was solely due to strength on the refinancing side. Of note, the previous week was shortened by the Martin Luther King holiday and MBA adjusted the week's results to account for the event. On an unadjusted basis the index, a measure of mortgage application volume, rose 20 percent compared with the previous week.

• Is CFPB Removing DTI Restrictions?

  Is CFPB Removing DTI Restrictions?

  The post Is CFPB Removing DTI Restrictions? appeared first on National Real Estate Post.

• Total Construction Spending Essentially Unchanged in 2019

  Total construction spending ended 2019 down slightly from the prior year. The U.S. Census Bureau said the total value of construction, both public and private, put in place during the year was $1.304 trillion compared to $1.307 trillion in 2018, an 0.3 percent decrease. Residential spending was down 4.6 percent from the prior year with expenditures of $520.9 billion. Non-residential spending gained 2.8 percent but annual gains in the various non-residential categories were modest. Only one type of construction rose by double digits; water supply projects were up 12.6 percent. This is a small dollar category however; total expenditures for the year were only $9.30 billion. 

• Home Price Gains at Entry Level Vex First-Time Buyers

  Home price increases, as measured by CoreLogic's Home Price Index (HPI) continued to pick up speed in December on an annual basis. However, they pulled back a bit from the sudden surge they had displayed in November. The HPI, which includes distressed sales, had a national rate of appreciation of 4.0 percent in December compared to a 3.7 percent gain in November. This continues a pattern of accelerating appreciation that began as interest rates fell back from their 2018 highs. On a month-over-month basis the index increased by 0.3 percent. The index had jumped from an 0.1 percent gain in October to 0.5 percent in November.

   

• Superbowl Commercial Promotes Mortgage Brokers

  Superbowl Commercial Promotes Mortgage Brokers

  The post Superbowl Commercial Promotes Mortgage Brokers appeared first on National Real Estate Post.

• Low Rates Boost Homebuying Power 16 Percent

  Black Knight, it the current edition of its Mortgage Monitor covering December mortgage performance data, writes an epitaph for slowing home price appreciation. Prices had been appreciating at an annual rate of nearly 7 percent in early 2018 but had fallen to 3.8 percent in August of 2019 as affordability worsened. But then, as Black Knight's President of Data & Analytics, President Ben Graboske writes, "The national home-price-growth rate gained a good deal of steam as mortgage interest rates declined throughout the second half of last year. In fact, December marked four consecutive months of home price growth acceleration and the largest single-month acceleration in more than 6.5 years, while the annual rate of appreciation saw nearly a full percentage point increase over the last four months of 2019, closing out the year at 4.7 percent."

   

• Homeownership Rate Still Barely Budging

  The homeownership rate seems stubbornly stuck only a few percentage points from where it bottomed out in the second quarter of 2016. The U.S. Census Bureau said the national rate in the fourth quarter of 2019 was 65.1 percent compared to 64.8 percent in both the prior quarter and the fourth quarter of 2018. The rate declined from a high of 69.0 percent in the third quarter of 2006 until reaching a low of 62.9 percent almost four years ago.

  The homeownership rate among the youngest Americans, those under the age of 35, increased by 1.1-point year-over-year to 37.6 percent. The rate gained a fraction of a point among all other age groups except those 35 to 44 years of age. Their rate declined from 61.1 percent in the fourth quarter of 2018 to 60.4 percent.

• Are Mortgage Brokers Taking Over?

  Are Mortgage Brokers Taking Over?

  The post Are Mortgage Brokers Taking Over? appeared first on National Real Estate Post.

• FHA Loans Becoming More Popular as Market Recovers

  In the throes of the housing crisis, it sometimes seemed as though FHA was the only way to finance a home purchase, especially for those with less than stellar credit or unable to come up with a large downpayment. The government sponsored insurance program has always been, quite intentionally, a countercyclical lender and when money was flowing freely during the housing boom, FHA lending shrunk to near nothing. Subprime lenders took over its market share, offering lower underwriting standards and teaser interest rates. In 2006, FHA loans had only a 4.5 percent share of the purchase finance market.

   

• The Interview That Can Save a Realtors Life

  The Interview That Can Save a Realtors Life

  The post The Interview That Can Save a Realtors Life appeared first on National Real Estate Post.

• 2019 Was a Great Year to Sell Your Home

  Homeownership is apparently still one of the best ways to build wealth. The Year-End Home Sales Report from ATTOM Data Solutions shows that the typical homeowner who sold a home in 2019 realized a gain of $65,500. This is up from $58,100 in 2018 and $50,027 in 2017 and the largest profit margin since 2006. Todd Teta, ATTOM's chief product officer said, "The nation's housing boom kept roaring along in 2019 as prices hit a new record, returning ever-higher profits to home sellers, and posing ever-greater challenges for buyers seeking bargains. In short, it was a great year to be a seller.

• WARNING: Do Not Pet a Rattlesnake

  WARNING: Do Not Pet a Rattlesnake

  The post WARNING: Do Not Pet a Rattlesnake appeared first on National Real Estate Post.

• Refis Made up More Than Half of Freddie Mac December Business

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 15.2 percent in December, a substantial change from the 0.4 percent gain in November.  The portfolio balance at the end of the period was $2.33 trillion compared to $2.302 trillion at the end of November and $2.182 trillion a year earlier. The growth rate for all of 2019 was 6.8 percent. Purchases and Issuances totaled $65.80 billion and Sales were ($780) billion. The November numbers were $55.45 billion and ($5.63) billion respectively. 

   

• Refis Still Shine as Lower Rates Drive Mortgage Applications

  Refinancing continues to dominate mortgage activity, spurred by another dip in mortgage rates. The Mortgage Banker Association (MBA) said the volume of loan applications rose during the week ended January 24 even though some businesses were impacted by the Martin Luther King holiday. MBA's Market Composite Index, a measure of mortgage loan application volume, increased 7.2 percent on a seasonally adjusted basis from the week ended January 17. The index was adjusted to account for the week's holiday. The index was 1.0 percent lower before adjustment.

   

• Pending Home Sales Erase More Than Half of 2019's Gains in a Single Report

  December's pending home sales erased the small gain posted in November and the National Association of Realtors' (NAR's) Pending Home Sales Index (PHSI) ended the year exactly where it had begun. The PHSI is a forward-looking indicator of existing home sales based on purchase contracts signed during the month. It fell 4.9 percent in December, from 108.5 in November to 103.2.  While this is 4.6 percent higher than the index in December 2018 (a reading of 99), it matches precisely the January 2019 level. Analysts had anticipated that contract signings would slow, but not decline. Those polled by Econoday had expected results ranging from no change to an increase of 1.0 percent after a 1.7 percent gain in November. Their consensus estimate was an increase of 0.4 percent.

   

• CFPB Finally Defines What Abusive Is

  CFPB Finally Defines What Abusive Is

  The post CFPB Finally Defines What Abusive Is appeared first on National Real Estate Post.

• Home Price Gains Resumed in November

  The recent re-acceleration of home price gains continued in November. The S&P CoreLogic Case-Shiller U.S. National Home Price Index which covers all nine U.S. census divisions, reported a 3.5 percent annual gain for the month, up from 3.2 percent in October. The growth rate of the indices had declined steadily throughout the year. The National Index had closed out 2018 with a 4.6 percent gain. That had dropped to 3.1 percent in August, then began to rise again. The 10-City Composite annual increase came in at 2.0 percent and the 20-City Composite rose 2.6 percent from a year earlier. The annual gains in October were 1.7 percent and 2.2 percent respectively.

   

• No Protection with Innovation the New Norm

  No Protection with Innovation the New Norm

  The post No Protection with Innovation the New Norm appeared first on National Real Estate Post.

• New Home Sales Pull Back Slightly in December; Year-Over-Year Gains Continue

  A lot of expectations and optimism were probably dashed by the December report on new home sales from the Census Bureau and Department of Housing and Urban Development. Analysts were expecting sales to build on the November seasonally adjusted annual estimate of 719,000 units which was an increase of 1.3 percent from October. Indeed, every prediction from those polled by Econoday was at that level or higher, with a consensus of 728,000 units. Instead, not only did the number fail to reach the bottom of that range, but November's number was revised down substantially.

  iods while sales in the West soared by 31.0 percent and 99.2 percent.

• Barry Habib Unveils Critical Google Search Phrase

  Barry Habib Unveils Critical Google Search Phrase

  The post Barry Habib Unveils Critical Google Search Phrase appeared first on National Real Estate Post.

• Here's How The Average Loan Looked in December

  The average interest rate on closed loans inched up in December and the share of those loans that were for refinancing moved lower. Ellie Mae's Origination Insight Report for the month says the average 30-year fixed rate in December rose to 3.99 percent from 3.97 percent in November and the year's low of 3.93 percent in September. The refinance share across all mortgage products declined from 49 to 46 percent. The share of loans that were originated for FHA rose 1 percentage point to 17 percent in December, taking that point from Conventional loans which dipped to a 70 percent share. The portion of VA loans was unchanged at 9 percent. Adjustable rate mortgages accounted for 5.5 percent or originations.

   

• Changes to FICO are on the Way

  Paying bills on time is about to become more important for American consumers, and this as their debt levels are reaching new highs. Fair Isaac Corporation, the company which creates the FICO credit score models, will introduce two new ones this summer, the FICO Score 10, and the FICO Score 10- T. The company says its new models "incorporate trended credit bureau data to further enhance predictive power" and that lenders could reduce defaults by as much as ten percent among newly originated bankcards and nine percent among newly originated auto loans, compared to using FICO's previous models. The reduction, the company says, could be 17 percent for newly originated mortgage loans compared to the version of the FICO Score used in that industry.

   

• Getting to Know Oaktree Funding

  Getting to Know Oaktree Funding

  The post Getting to Know Oaktree Funding appeared first on National Real Estate Post.

• Existing Home Sales Highest in Nearly 2 Years

  Existing home sales rose convincingly in December, gaining 3.6 percent compared to sales the prior month. Sales of all existing home types, single-family, townhouses, condos, and cooperative apartments were higher than in November and all posted double digit increases from sales in December 2018. The National Association of Realtors® said home sales were at a seasonally adjusted annual rate of 5.54 million units in December compared to 5.35 million units in November. They were up 10.8 percent from the 5.00 million pace in December 2018.

   

• Foreclosures at 14-Year Low; Loan "Mortality" up 126% Annually

  Even though many of the measures are already at record lows, mortgage delinquencies continue to tick downward according to Black Knight's "first look" at December loan performance data. At the same time, the Single Month Mortality (SMM) rate, an indicator of mortgage loan prepayments, continues to increase, but at a slower rate.

  Mortgage delinquencies fell by 3.75 percent from November to December and were down 12.43 percent compared to December 2018. At the end of the month there were 1.80 million loans that were 30 days or more past due, although not in foreclosure, 3.40 percent of all mortgaged homes. That delinquency rate is 0.04 percent away from the record low set in May 2019.

• CFPB to Extend QM Patch – Kind Of

  CFPB to Extend QM Patch – Kind Of

  The post CFPB to Extend QM Patch – Kind Of appeared first on National Real Estate Post.

• Gen Z and Millennials Plan on Buying Homes in Larger Numbers

  The share of adults who told the National Association of Home Builders (NAHB) they were considering a home purchase in the next year has now fallen year-over-year for the fifth consecutive time. NAHB's survey for its fourth quarter 2019 Housing Trends Report found only 11 percent of its respondents had such plans, a 2-percentage point drop from the survey a year earlier and less than half the share in the fourth quarter of 2017. Rose Quint, writing in NAHB's Eye on Housing blog blamed the steady decline in planned participation on the persistent low levels of housing inventory.

   

  erly survey conducted online. Results are not yet seasonally adjusted due to the short-time horizon of the series. Only annual comparisons are statistically valid.

• Mortgage Application Volume Retains Most of Last Week's Gains

  The volume of mortgage applications submitted during the week ended January 17 slowed after a strong performance - a 30.2 percent increase - the prior week, but it was only a small decline. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, ticked down 1.2 percent on a seasonally adjusted basis while gaining 0.4 percent unadjusted. Refinancing remained at a high level. The Refinancing Index, while down 2 percent on a week-over-week basis following a 43 percent surge during the week ended January 10, maintained a 116 percent edge over the same week in 2019. 

• Fannie Predicts Pick-Up in Residential Construction in 2020

  In its first economic forecast of 2020, Fannie Mae's Economic and Strategic Research (ESR) Group is doubling down on its late 2019 predictions. The economists say that "[C]onstruction is poised to become a significant contributor to overall economic growth again," and sets the year's theme as "A Resilient Economy Overcomes Risks to Drive Housing." For the economy as a whole, the ESR says it expects its earlier forecast that fixed business investment would turn positive at the end of last year to finally come about in the current quarter. It also ups its previous 2.3 percent growth in 2019 real gross domestic product (GDP) to 2.4 percent. Its full year 2020 forecast is unchanged at 2.1 percent although stronger growth is now expected at the start of the year.

   

• Home Prices Still Growing at More than 5% Annually

  The annual rate of home price increases continued at a stable rate in November according to the Federal Housing Finance Agency (FHFA), however there are indications of some acceleration on a shorter-term basis. The FHFA's Housing Price Index (HPI) rose 4.9 percent compared to November of 2018. The annual increase in October was 5.0 percent. On a monthly basis prices rose 0.2 percent from October; however, the 0.2 percent increase originally reported for that month was boosted to 0.4 percent. It was the second month in a row that FHFA has revised the prior month's number higher.

   

   

  HPI was benchmarked to 100 in January 1991. The November 2019 reading was 281.2.

• What Mortgage Customers Hate the Most

  What Mortgage Customers Hate the Most

  The post What Mortgage Customers Hate the Most appeared first on National Real Estate Post.

• FHA Wants Big Banks Back

  FHA Wants Big Banks Back

  The post FHA Wants Big Banks Back appeared first on National Real Estate Post.

• December's Housing Starts Surged to 13-Year High

  While permits fell from the previous month, the U.S. Census Bureau and the Department of Housing and Urban Development said December was another exceptional month for residential housing starts. Those starts soared to a seasonally adjusted annual rate of 1,608,000 during the month, a 16.9 percent increase from November's estimate which was revised from 1,365,000 to 1,375,000. The December number was the highest monthly rate for starts since the same month in 2006 and was 40.8 percent higher than last year's December pace.

   

• The Top 9 Problem Areas in the Mortgage Process

  The Top 9 Problem Areas in the Mortgage Process

  The post The Top 9 Problem Areas in the Mortgage Process appeared first on National Real Estate Post.

• Home Builders Confidence Remains Near 20-Year High

  The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) settled back a bit after its 5-point surge in December took it to its highest level since 1999. The Index, a measure of builder confidence in the market for newly constructed homes, dipped 1 point in January to 75, still remaining above that earlier high. NAHB said, "With the Federal Reserve on pause and attractive mortgage rates, the steady rise in single-family construction that began last spring will continue into 2020. However, builders continue to grapple with a shortage of lots and labor while buyers are frustrated by a lack of inventory, particularly among starter homes."

   

• Broker vs Banker Stats

  Broker vs Banker Stats

  The post Broker vs Banker Stats appeared first on National Real Estate Post.

• How Downsized Building Trends Affect Bedrooms and Bathrooms

  Builders are struggling to construct homes that are affordable to a greater number of buyers, especially those on the entry level, and they are finding building smaller and leaner is one way to go. Using data from the U.S. Census Bureau's Survey of Construction (SOC) and its Quarterly Starts and Completions by Purpose and Design, the National Association of Home Builders (NAHB) has analyzed the steadily declining size of new houses and the shift in the number of bedrooms and bathrooms within.

  The decline in the average size of homes constructed since 2016 has been slow but steady (the median size is more volatile) and reached 2,464 square feet (sf) in the third quarter of 2019. The one-year moving average is slightly higher at 2,521sf.

• Mortgage Applications Soar to Best Levels in Over a Decade

  Mortgage application activity exploded out of the starting gate during the first full week of 2020. The Mortgage Bankers Association's (MBA) said its Weekly Mortgage Applications Survey for the week ending January 10, 2020 showed increases in every category, dramatic ones in most, as rates set new recent lows. The Market Composite Index, a measure of mortgage loan application volume, increased 30.2 percent on a seasonally adjusted basis from the week ended January 3, a period that was still in holiday mode. The previous week's results included an adjustment for the New Year's Day holiday. On an unadjusted basis, the Index was up by 67 percent compared with the previous week.

   

• VA Removes Loans Limits, Increases Fees

  U.S. military veterans and active duty personnel who buy or refinance a home in 2020 will have more buying power if they use a VA loan. They will also pay more money for that loan. The Blue Water Navy Vietnam Veterans Act of 2019, which become effective on January 1, 2020, will eliminate loan limits on VA loans but will also increase many of the associated fees. VA loans are available with a loan-to-value ratio of 100 percent and in some circumstances the leverage can be even higher. The loans however have always been subject to the same limit that applies to conventional and FHA loans. That limit is $510,400 in most U.S. counties this year, with larger limits in defined "high cost" areas. These limits will no longer exist for veterans with full access to the benefit.

   

• Lower Housing Affordability Linked to Slower Job Growth

  The National Association of Realtors® (NAR) has uncovered another downside to the increasing lack of housing affordability in the U.S. A new study found that, in many areas where affordability has declined over the last five years, so has the rate of job growth. NAR measures affordability by calculating the ratio of the median family income to the metro area's qualifying income for a home mortgage or QI. QI is the income needed so that the 30-year fixed mortgage payment on a median-priced single-family home purchased with a 20% down payment accounts for no more than 25% of income.

  ."

• FinTech Companies Under Fire

  FinTech Companies Under Fire

  The post FinTech Companies Under Fire appeared first on National Real Estate Post.

• Finding a Balance Between Mortgage Availability and Default Risk

  CoreLogic is continuing its analysis of the potential impact of the January 2021 expiration of the so-called "GSE Patch." Under the Consumer Financial Protection Bureau's (CFPB's) 2013 Ability-to-Repay (ATR) and Qualified Mortgage (QM) Rules, lenders must make a reasonable, good faith determination of a consumer's ability to repay a mortgage loan based on verified financial information generally associated with responsible mortgage lending practices. In most cases, meeting QM requirements provides lenders with a safe harbor from the Rules' legal liabilities. Lenders who fail to comply can be held liable for damages by both the CFPB and the homeowner. The Patch provides a temporary category under ATR and QM rules under which loans eligible for purchase or guarantee by the GSEs Fannie Mae and Freddie Mac can qualify as QM loans.

   

• Over Half of Americans Polled Think it is Time to Buy

  Over Half of Americans Polled Think it is Time to Buy

  The post Over Half of Americans Polled Think it is Time to Buy appeared first on National Real Estate Post.

• Smaller, Smarter: How Builders are Changing Housing and Courting Millennials

  After the housing crash and as the recovery began home builders ratcheted up the size of the homes they were building because the profit margin was higher on larger homes. There was also a lot of competition at lower price points from the numbers of distressed properties for sale. Now they are not only rethinking that strategy but apparently acting to reverse it. Paul Davidson, writing in USA Today, says it is getting easier to find smaller and more affordable newly constructed homes. One builder, Alure Homes, told Davidson that homes priced under $300,000 made up about 50 percent of the company's production last year, up from 20 to 30 percent in the previous six years.

  is also getting into the starter home market - but theirs are priced between $300,000 and $500,000.

• Great NAR Article Very Helpful for Marketing

  Great NAR Article Very Helpful for Marketing CLICK HERE to go to the NAR Article

  The post Great NAR Article Very Helpful for Marketing appeared first on National Real Estate Post.

• The No Mortgage Purchase Deal

  The No Mortgage Purchase Deal – Visit FLEQ HERE.

  The post The No Mortgage Purchase Deal appeared first on National Real Estate Post.

• Survey Says: Great Time to Buy a Home, Or Sell!

  Results of a survey by the National Association of Realtors (NAR) released today echo the findings from the most recent National Housing Survey (NHS) conducted by Fannie Mae - Americans think this is a great time to buy a home. Sixty-three percent of respondents to NAR's fourth quarter Housing Opportunities and Market Experience (HOME) survey expressed that opinion (59 percent told NHS pollsters this.)  Further, 33 percent of respondents told NAR they strongly believe this. Even more Americans think it is a good time to sell, nearly three-quarters (74 percent) said so. Both buying and selling sentiments were unchanged from the third quarter survey.

   

• Fascinating 2020 Insights with Barry Habib

  This is a reissue of a show we did on January 2nd.  We had a technical issue with it and many of you have requested to have us reissue it, so here it is! CLICK HERE to TRY MBS HIGHWAY

  The post Fascinating 2020 Insights with Barry Habib appeared first on National Real Estate Post.

• Are Manufactured Homes the Unlikely Answer to Housing Shortage?

  While housing starts have picked up in recent months, the lack of new construction has been called a crisis by Freddie Mac, state and federal policymakers, and consumer groups, adding as it has to an overall shortage of housing for both sale and rent. Urban Institute (UI) analyst John Walsh recently wrote in UI's Urban Wire blog that one problem with 21^st Century homebuilding is that it still employs 20^th Century processes. These methods, that entail building largely on-site, make construction less efficient, exacerbate labor and weather issues, and are costlier than building off-site.

   

• Mortgage Applications Start Year on Positive Note

  The Mortgage Banker Association's (MBA's) offices were closed over the two-week holiday period. The data in this week's report on mortgage applications activity is compared with that from the last published report covering the week ended December 20. MBA's Market Composite Index, a measure of mortgage loan application volume was down 1.5 percent on a seasonally adjusted basis compared to the previous report. On an unadjusted basis, the Index was 22 percent lower. The Refinance Index was down 8 percent from the last report while remaining elevated from the same week a year earlier by 74 percent. The seasonally adjusted Purchase Index increased 5 percent although it was down 14 percent on an unadjusted basis from the December 20 period. Purchase applications were 2 percent higher than the same week one year earlier.

   

• Homebuying Sentiment Up Sharply from 2018

  Fannie Mae's Home Purchase Sentiment Index (HPSI) finished out the year with little change from November to December, but with a strong increase over the December 2018 version. Three HPSI components were up in December but those gains were offset by losses in the other three resulting in only an 0.2 percent uptick for the month to a reading of 91.7. The largest month-over-month gain was in the net share of those who expect home prices to rise over the next 12 months. The percentage of Americans holding that sentiment increased from 44 percent to 50 percent while 10 percent expect a decline, the same as in November. This left the net of those expecting increases 6 points higher points at 40 percent.

   

• November Home Prices Post Highest Gains in 10 Months

  The pace of home price increases picked up in November, increasing by 3.7 percent on a year-over-year basis, up from 3.5 percent in October. CoreLogic said its Home Price Index (HPI) posted a monthly gain of 0.5 percent, a substantial uptick from the 0.2 percent gain the prior month. The index, which covers both market and distressed sales, hit a recent peak of 6.62 percent in April 2018 before beginning a steady slowdown. CoreLogic's chief economist Frank Nothaft said, "The latest U.S. index shows that the slowdown in home prices we saw in early 2019 ended by late summer. Growth in the U.S. index quickened in November and posted the largest 12-month gain since February. The decline in mortgage rates, down more than one percentage point for fixed-rate loans from November 2018, has supported a rise in sales activity and home prices.

   

• Big Changes Coming to Fannie and Freddie

  Big Changes Coming to Fannie and Freddie

  The post Big Changes Coming to Fannie and Freddie appeared first on National Real Estate Post.

• Online Homebuyer Course Could Help Borrowers Qualify

  Freddie Mac is announcing it has put a critical homebuyer education course online. The new tutorial, called CreditSmart® Homebuyer U is free and its successful completion satisfies the HomeOne^SM or Home Possible^® mortgage homeownership education requirement. CreditSmart Homebuyer U offers six educational modules, each focused on a key learning principle relating to money management, credit, getting a mortgage, the homebuying process and preserving homeownership. It is the latest addition to the CreditSmart "suite" of financial and homeownership education curricula that have been in place for the last 18 years.   

   

• Cash Out Refinances Booming

  Cash Out Refinances Booming

  The post Cash Out Refinances Booming appeared first on National Real Estate Post.

• New Home Sales are Stronger in Growing Cities

  Depending on how you look at it, either Texas and Florida or Nevada and Idaho were the fastest growing states in 2019. Frank Nothaft, CoreLogic's chief economist says that in terms of sheer numbers the first two grew dramatically, with Texas adding 367,000 more residents and Florida's population increasing by 233,000. Percentage wise, the two smaller states each grew by more than 1.7 percent. In terms of new home sales, it is clearly the big numbers that count and the two states that have seen the largest population gains have also seen the most robust sales. The two metro areas with the largest number of new home sales were Dallas and Houston and Texas and Florida together claimed six of the top ten spots.

   

   

• Single Family Construction Spending Struggles to Catch up to 2018

  Construction spending by both the public and the private sector grew in November, totaling a seasonally adjusted annual rate of $1.324 trillion dollars. This is 0.6 percent higher than the $1.316 trillion rate in October and represents 4.1 percent growth compared to the $1.271 trillion in construction put in place in November 2018. On an unadjusted basis, construction spending was $110.7 billion during the month compared to $117.8 billion the previous month. For the first 11 months of the year, spending is down 0.8 percent from $1.212 trillion in 2018 to $1.202 trillion in 2019.

   

• January Jump Start with Carl White

  January Jump Start with Carl White Connect with Carl HERE!

  The post January Jump Start with Carl White appeared first on National Real Estate Post.

• How do 2020 Candidates Want to Solve Housing Shortage?

  The Urban Institute's Karan Kaul and John Walsh have provided a quick overview of the proposals put out by several Democratic presidential candidates to address the housing supply shortage. The writers say that the fact this issue is drawing the attention of candidates "promising" and the proposed solutions "a major step in the right direction." As background, construction of new residential units is not keeping up with demand, especially given the 80 million Millennials who are in or entering prime household formation and homebuying years. The lack of supply in the face of demand almost always causes higher prices for consumers. UI notes that it was the big cities most affected by the supply/demand imbalance at first, but the lack of a nationwide response has caused the lack of affordability to begin filtering into smaller markets of late.

   

• Fascinating 2020 Insights from Barry Habib

  Fascinating 2020 Insights from Barry Habib

  The post Fascinating 2020 Insights from Barry Habib appeared first on National Real Estate Post.

• Tracking and Explaining Big Picture Shifts in Mortgage Risk Factors

  The effects of low interest rates continue to echo through the mortgage markets. Those rates can be credited, at least in part, with a change in the risk profile of conventional home purchase loans.

  According to CoreLogic's Archana Pradhan, writing in the company's Insights blog, the average debt-to-income ratios for those loans declined during the third quarter of 2019 compared to a year earlier, most likely because of lower mortgage payments. At the same time, loan to value (LTV) ratios for those loans moved higher.

  Pradhan says DTI and LTV, two of the three credit-risk attributes of borrowers, have varied dramatically over the last 20 years. Starting in 2014 the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac loosened their underwriting policies to make loans more available to...

• Hottest Non-QM Products for 2020

  Hottest Non QM Products for 2020

  The post Hottest Non-QM Products for 2020 appeared first on National Real Estate Post.

• Home Price Deceleration: Over or Merely on Pause?

  Both the S&P CoreLogic Case-Shiller indices and the House Price Index (HPI) provided by the Federal Housing Finance Agency (FHFA) showed slight acceleration in home price increases during October. Case Shiller's National Home Price Index, which covers all nine U.S. census divisions, reported an annual gain of 3.3 percent compared to a 3.2 percent rate of appreciation in September. On a monthly basis the National Index was up 0.1 percent on an unadjusted basis, and it gained 0.5 percent after seasonal adjustment. The 10-City Composite Index posted annual growth of 1.7 percent in October, 0.2 percentage point more than the rate in September. The 20-City Composite was up 2.2 percent year-over-year compared to 2.1 percent the prior month.

   

• Pending Home Sales Index Surges Past 2018 Numbers

  Pending home sales bounced back in November, partially recovering from a 1.7 percent decline in October. The National Association of Realtors® said its Pending Home Sales Index (PHSI), a measure of contracts signed during the month to purchase existing homes, gained 1.2 percent in November to a reading of 108.5 from 106.7.  The index is now up 7.4 percent compared to the November 2018 PHSI. The month-over month change was slightly higher than the estimate of 1.1 percent from analysts polled by Econoday. Those estimates ranged from 0 to 1.5 percent. The forecast from Trading Economics was precisely on target for the October to November change, but fell far short of the actual year-over-year increase with a prediction of 5.8 percent.

   

• Mortgage Demand Light For Holidays, But Well Ahead of Last Year

  The Mortgage Bankers Association (MBA) says mortgage application volume slowed significantly last week as Americans prepared for several major holidays. Its Market Composite Index, a measure of mortgage loan application volume, was down on a seasonally adjusted basis during the week ended December 20 by 5.3 percent compared to the previous week and was 6.0 percent lower on a non-adjusted basis.

  Purchase and refinance applications contributed about equally to the decline with the Refinance Index and the seasonally adjusted Purchase Index each falling 5.0 percent from the prior week and the non-adjusted Purchase Index off by 7.0 percent. Still, activity remained elevated

• Freddie's Year-End Forecast; Steady as She Goes

  Freddie Mac's economic projections at year end are largely unchanged from those over the last few months when interest rates neared a new low and the market perked up. Its economists summed up the year that is about to end saying, "Sustained economic growth, low interest rates, and a robust labor market helped the U.S. housing market regain its footing in 2019." The company is projecting modest growth in the housing market for both next year and in 2021, growing from expected total home sales (new and existing) of 6.0 million this year to 6.2 million and 6.3 million over the forecast horizon.

   

• Multifamily Delinquencies Ticking Up Slowly

  Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 0.4 percent in November, down from 3.0 percent the previous month.  The portfolio balance at the end of the period was $2.302 trillion compared to $2.301 trillion at the end of October and $2.170 trillion a year earlier. Purchases and Issuances totaled $55.446 billion and Sales were ($5.629) billion. The October numbers were $51.13billion and ($1.578) billion respectively.  Single-family refinance loan purchase and guarantee volume was $26.8 billion in October, down from $26.9 billion in October and representing a 59 percent share of total single-family mortgage portfolio purchases and issuances compared to 57 percent the previous month.

   

• NMP 40 Under 40 List and How a Tennis Magazine Story Might Help

  NMP 40 Under 40 List and How a Tennis Magazine Story Might Help

  The post NMP 40 Under 40 List and How a Tennis Magazine Story Might Help appeared first on National Real Estate Post.

• New Home Sales Remain Near 12 Year Highs

  New home sales continued their recent run in November, increasing by 1.3 percent from the revised October rate of 710,000 to a seasonally adjusted annual rate of 719,000 units. The numbers were deceiving however, as that October rate was revised down from the original estimate of 733,000 units. On an annual basis, the U.S. Census Bureau and Department of Housing and Urban Development said November sales were 16.9 percent higher than a year earlier when the rate was 615,000 units. Sales in October had been estimated at a 31.6 percent year-over-year improvement.

  The November rate of sales was barely...

• Fun Christmas Gifts for Realtors and Lenders

  Fun Christmas Gifts for Realtors and Lenders CLICK HERE for the Article

  The post Fun Christmas Gifts for Realtors and Lenders appeared first on National Real Estate Post.

• Inventory Shortage Continues to Weaken New Home Sales

  Existing home sales fell back again in November, erasing most of October's 1.9 percent gain. Sales have now declined in two of the last three months. The National Association of Realtors® (NAR) said sales of previously owned single-family houses, townhouses, condominiums, and cooperative apartments were at a seasonally adjusted rate of 5.35 million, down 1.7 percent from the October rate of 5.46 million units. Sales for the month, however, were still up by 2.7 percent from the 5.21 million pace in November 2018. Sales of single-family homes were at a rate of 4.79 million units compared to 4.85 million the previous month, a loss of 1.2 percent but 3.5 percent higher than a year earlier. Coop and condo sales fell even further, 5.1 percent. The annual rate of 560,000 condo sales in November was 3.4 percent below the rate the previous November. The pullback was not unexpected. Analysts polled by Econoday had forecast a consensus sales rate of 5.45 million. NAR's estimate came in just under the low end of the predictions which ranged from 5.37 to 5.55 million units. Lawrence Yun, NAR's chief economist, said the decline in sales for November is not a cause for worry. "Sales will be choppy when inventory levels are low, but the economy is otherwise performing very well with more than 2 million job gains in the past year," he said.