Biden transition team replete with housing experts but lacking lenders
Several housing experts who worked at government-related agencies during the Obama era are on the Biden administration’s transition teams, but representation of companies currently working in the mortgage business is lacking. NMN gives an overview of the housing experts. (Read full story here.)
What Sheila Bair brings to table as chair of Fannie Mae
Sheila Bair, as head of the Federal Deposit Insurance Corp. during the financial crisis, oversaw the resolution of more than 300 failed banks that went into receivership. Now, she’ll play a major role in tackling one of the last problems left undone from that era: getting the mortgage giant Fannie Mae out of federal conservatorship. Bair will become chair of Fannie’s board next week, slightly more than a year after joining the government-sponsored enterprise as a director. (Read full story here.)
LoanDepot confirms it’s considering an IPO again
LD Holding Group Wednesday said that its new loanDepot Inc. affiliate submitted a draft registration statement with the Securities and Exchange Commission relating to a proposed initial public offering. The draft IPO filing for its Class A shares follows speculation by analysts that it would follow the lead of Rocket Cos. in going public. (Ready full story here.)
Mortgage rates rise on positive news about a vaccine
Mortgage rates moved off of their all-time low this week as a result of reports that Pfizer's coronavirus vaccine was potentially 90% effective, according to Freddie Mac. "Despite this rise, mortgage rates remain about a percentage point below a year ago and the low rate environment is supportive of both purchase and refinance demand," Sam Khater, Freddie Mac's chief economist, said in a press release. "Heading into late fall, the housing market continues to grow and buttress the economy." (Read full story here.)
Delinquencies fall in 3Q but 'no guarantee it will continue'
The number of mortgage delinquencies fell after spiking in the second quarter — the first full quarter which suffered coronavirus ramifications, according to the Mortgage Bankers Association. The third quarter's seasonally adjusted delinquency rate hit 7.65%, dropping quarterly from 8.22% while nearly doubling the 3.97% ratefrom the year before — the second-lowest point since 1995. (Read full story here.)
FHA's capital buoyed by house price appreciation despite higher defaults
A key indicator of health for the Federal Housing Administration’s mutual mortgage insurance fund reached a high not seen since 2007, as strong house price appreciation more than offset economic harm done by the pandemic.
The FHA said Friday in its annual actuarial report that the fund's capital reserve ratio increased to 6.10% in the 2020 fiscal year, up from 4.84% a year earlier. Meanwhile, the fund's economic net worth increased to $78.95 billion — more than double its value just two years earlier. (Read full story here.)
Freddie Mac CEO David Brickman resigns, interim leader appointed
Freddie Mac’s CEO, David Brickman, quietly tendered his resignation earlier this week and will be officially stepping down Jan. 8, according to a Securities and Exchange Commission filing Friday. Representatives from Freddie Mac offered no additional comment on the personnel change. (Read full story here.)
Rocket’s 3Q originations soar as gain-on-sale margins shrink
Rocket Cos. earned nearly $3 billion in the third quarter, up from $495 million in 3Q19, and down from the $3.5 billion reported in preliminary and final results for 2Q20. Closed origination volume soared during the three-month fiscal period to a record high of $89 billion, a substantial increase from more than $40 billion in 3Q19. It also was up from $72.3 billion in 2Q20. (Read full story here.)
Rise in mortgage foreclosures reflects unemployment, COVID-19 woes
While moratoria have kept foreclosures low compared to last year's rates, October activity jumped 20% from September, according to Attom Data Solutions. Foreclosure filings — inclusive of default notices, bank repossessions and scheduled auctions — totaled 11,673, up month-over-month from 9,707 but down 79% year-over-year from 55,197. (Read full story here.)
Win McNamee/Photographer: Win McNamee/Getty
What the Biden housing agenda could look like
Mortgage professionals envision broader access to government-related credit sources but potentially tighter regulation under the incoming Biden administration. However, changes won’t be quick to materialize, particularly if Republicans gain control of the Senate after Georgia’s two runoff races on Jan. 5. And don’t expect every move President Trump has made over the last four years to be undone, industry experts say. Some Trump administration initiatives that are already in progress, like government-sponsored enterprise reform, could proceed apace, noted Bob Broeksmit, president and CEO of the Mortgage Bankers Association. (Read full story here.)
Fannie hasn't completed any credit risk transfers to private investors since the second quarter. Some experts worry the decision — likely spurred by the company’s concerns about a recent capital regulation — could put the mortgage giant on unsteady footing.