Biden’s eviction ban wins in court, Fannie Mae to include rent payments in underwriting & more of the week's top news
August 13, 2021 5:49 PM
Fannie Mae to include rent payments in underwriting
Fannie Mae will factor rental payment history over the most recent 12 months into its mortgage underwriting starting on Sept. 18 to give historically underserved populations a more inclusive measure of fiscal health.
The rental history incorporation can only weigh positively in a consumer’s credit assessment, said Malloy Evans, executive vice president and head of single-family at Fannie Mae. If a prospective borrower has missed payments it would not be counted against them.
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The rental history incorporation can only weigh positively in a consumer’s credit assessment, said Malloy Evans, executive vice president and head of single-family at Fannie Mae. If a prospective borrower has missed payments it would not be counted against them.
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July foreclosures increase 40% year-over-year
The number of pandemic forbearances that will transition into foreclosures won’t be clear for months, but there are signs that activity involving older loans is rising.
Foreclosure filings accounted for 12,483 properties in July, down 4% from June but a 40% increasefrom 8,892 a year ago. A total of 6,572 mortgages started the foreclosure process in July. That number was down 4% from June of this year, and up 45% from 4,530 properties in July 2020.
While foreclosure proceedings will continue increasing with the government’s moratorium expired,the Consumer Financial Protection Bureau issued a temporary final rule giving delinquent borrowers a better chance at keeping their homes.
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Foreclosure filings accounted for 12,483 properties in July, down 4% from June but a 40% increase
While foreclosure proceedings will continue increasing with the government’s moratorium expired,
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Chris Kleponis/Bloomberg
Waters calls for more FHA mortgage foreclosure protections
House Financial Services Committee Chair Maxine Waters, D-Calif., issued two letters urging federal agencies to provide more protections against foreclosures after the ban ends and the enforcement of new rules regarding the servicing of loans coming out of CARES Act-related forbearance begin.
“Providing clear guidance to mortgage servicers and enhancing supervision and enforcement during this period is critical to ensure homeowners do not face unnecessary foreclosures during the month of August and before housing counseling funds and homeowner assistance funds provided through the American Rescue Plan Act have reached communities and households,” Waters wrote.
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“Providing clear guidance to mortgage servicers and enhancing supervision and enforcement during this period is critical to ensure homeowners do not face unnecessary foreclosures during the month of August and before housing counseling funds and homeowner assistance funds provided through the American Rescue Plan Act have reached communities and households,” Waters wrote.
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John Moore/Photographer: John Moore/Getty I
Judge rules Biden’s ban on evictions can remain in place
A federal judge in Washington ruled that a temporary U.S. ban on evictions in parts of the country hit hardest by the coronavirus can continue, a major victory for the Biden administration’s efforts to extend protections as the delta variant spreads.
U.S. District Judge Dabney Friedrich rejected a plea to block a moratorium by the Centers for Disease Control and Prevention that was set to last until Oct. 3. The decision extends protections against eviction that expired July 31 and were in doubt after the Supreme Court indicated in June that only Congress could continue the policy.
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U.S. District Judge Dabney Friedrich rejected a plea to block a moratorium by the Centers for Disease Control and Prevention that was set to last until Oct. 3. The decision extends protections against eviction that expired July 31 and were in doubt after the Supreme Court indicated in June that only Congress could continue the policy.
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Buyers and sellers have gloomy outlook on July housing market
High demand in the housing market has both buyers and sellers pessimistic about their prospects, and the continued rise in listing prices pushed a rising number of otherwise willing buyers to the sidelines.
The share of borrowers who thought July was a good time to buy a home dropped to a new all-time low of 28% from32% in June and from 53% one year earlier. A 66% share said it was a bad time to buy, dropping the net percentage to -38% from June’s -32% and July 2020’s 15% a year ago.
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The share of borrowers who thought July was a good time to buy a home dropped to a new all-time low of 28% from
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Andrew Harrer/Bloomberg
Ginnie Mae extends comment period on nonbank capital plan
Ginnie Mae will give more time for financial institutions to comment on a plan that would impose new risk-based capital requirements on nonbanks and clarified that the changes will not take effect this year.
Ginnie, an arm of the Department of Housing and Urban Development, said late Thursday that it will extend the comment period by 60 days to Oct. 8 on its request for input. The guarantee agency hadasked for feedback on a plan to increase net worth and liquidity requirements on all financial institutions that issue Ginnie Mae securities. Ginnie initially gave lenders 30 days to respond.
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Ginnie, an arm of the Department of Housing and Urban Development, said late Thursday that it will extend the comment period by 60 days to Oct. 8 on its request for input. The guarantee agency had
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Home Point considers selloff of Ginnie Mae servicing rights
Competitive pricing pressure in markets and agency fees contributed to a net quarterly loss at Home Point Capital and led the company to consider a partial mortgage-servicing portfolio sale to pay off debt.
For the second quarter, Home Point Capital, parent company of mortgage lender and servicer Homepoint Financial, posted a net loss of $73.2 million, compared to net income of $149 millionthe previous quarter and a gain of $169 million in the second quarter of 2020. Loss per share equaled $0.53. Per share earnings came in at $1.07 in the first quarter and $1.22 a year ago.
“We entered the second quarter faced with an historic pricing dislocation in our primary origination channel — wholesale. Revenue had compressed to levels not seen in at least the past eight years,” Willie Newman, Home Point Capital’s CEO and president, said during the company’s earnings call on Tuesday.
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For the second quarter, Home Point Capital, parent company of mortgage lender and servicer Homepoint Financial, posted a net loss of $73.2 million, compared to net income of $149 million
“We entered the second quarter faced with an historic pricing dislocation in our primary origination channel — wholesale. Revenue had compressed to levels not seen in at least the past eight years,” Willie Newman, Home Point Capital’s CEO and president, said during the company’s earnings call on Tuesday.
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CFPB servicing rule aims to prevent foreclosure crisis
With a flood of foreclosures are expected as early as next month, there are hopes a recent Consumer Financial Protection Bureau rule will help limit the damage.
Federally sponsored forbearance plans begin expiring in September after a temporary foreclosure moratorium ended July 31. Many analysts believe foreclosures will soon be inevitable for hundreds of thousands of borrowers who were delinquent as soon as the pandemic began last year.
A CFPB rule taking effect Aug. 31 enables lenders to process quick foreclosures for loans beyond repair, so they can focus on working with other borrowers and thereby mitigate cumulative foreclosures from COVID-19.
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Federally sponsored forbearance plans begin expiring in September after a temporary foreclosure moratorium ended July 31. Many analysts believe foreclosures will soon be inevitable for hundreds of thousands of borrowers who were delinquent as soon as the pandemic began last year.
A CFPB rule taking effect Aug. 31 enables lenders to process quick foreclosures for loans beyond repair, so they can focus on working with other borrowers and thereby mitigate cumulative foreclosures from COVID-19.
Read the
Alex Wong/Bloomberg
HUD to team with Fannie, Freddie regulator on fair housing oversight
The Federal Housing Finance Agency and the Department of Housing and Urban Development have entered into a memorandum of understanding aimed at increasing Fair Housing Act enforcement for Fannie Mae, Freddie Mac and the Federal Home Loan banks.
Under the agreement the two agencies will share information and coordinate investigations and compliance reviews. HUD is primarily tasked with enforcing the Fair Housing Act, and the FHFA regulates the government-sponsored enterprises.
"FHFA oversees entities that have significant control over a large share of the mortgage market. Stepping up our collective fair housing oversight of their activities will make an enormous impact,” HUD Secretary Marcia Fudge said in a press release.
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Under the agreement the two agencies will share information and coordinate investigations and compliance reviews. HUD is primarily tasked with enforcing the Fair Housing Act, and the FHFA regulates the government-sponsored enterprises.
"FHFA oversees entities that have significant control over a large share of the mortgage market. Stepping up our collective fair housing oversight of their activities will make an enormous impact,” HUD Secretary Marcia Fudge said in a press release.
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Redfin reports record rise in market share in Q2
Though Redfin saw a record increase in market share in the second quarter, it also reported a net loss of $28 million over the period.
The losses in the second quarter of this year were largely attributed tothe acquisition of RentPath , a deal which closed on April 2. The company expects RentPath to contribute $17 million in net losses in the third quarter.
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The losses in the second quarter of this year were largely attributed to
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Low mortgage rates blunt shift to purchase market — for now
The momentum of the shift towards a purchase-dominated mortgage market was at least temporarily blunted in July, when refinance loans made up half of the rate locks for the first time in five months, Black Knight said. An increase in COVID-19 infections over the last few weeks has contributed towards a reverse in the trend.
The 50/50 split was a change from the June Origination Market Monitor report's heavy weighting to purchase, with a 57% share versus 43% in refinances. And a separate report from ICE Mortgage Technology found that in June, for the first time in 18 months, more purchase loans were closed than refinances.
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The 50/50 split was a change from the June Origination Market Monitor report's heavy weighting to purchase, with a 57% share versus 43% in refinances. And a separate report from ICE Mortgage Technology found that in June, for the first time in 18 months, more purchase loans were closed than refinances.
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Multifamily originations expected to set a record in 2021
The Mortgage Bankers Association now forecasts a 31% year-over-year rise in volume for commercial and multifamily originations.
Multifamily originations are expected to increase to $409 billion, a 13% year-over-year increase and a new record, topping last year's $360 billion in multifamily volume. Mortgages secured by income producing properties to be originated this year are expected to increase to $578 billion, compared with $442 billion in pandemic-affected 2020.
Backin February , the MBA forecasted $486 billion in commercial and multifamily mortgage volume for 2021.
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Multifamily originations are expected to increase to $409 billion, a 13% year-over-year increase and a new record, topping last year's $360 billion in multifamily volume. Mortgages secured by income producing properties to be originated this year are expected to increase to $578 billion, compared with $442 billion in pandemic-affected 2020.
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Guild Mortgage Q2 earnings show lower profits, shrinking margins
Decreased volume and lower gain-on-sale margins led to smaller quarterly gains at Guild Holdings, and the company expects further slowdowns in the second half of 2021.
In the second quarter, the parent ofGuild Mortgage reported net income of $8.9 million, a year-over-year decrease of 92.7% compared to the $123 million recorded in the second quarter of 2020. Income over the most recent period was also down from the first three months of 2021 when profits came in at $160.6 million. Earnings per share equaled $0.15, or $0.87 on an adjusted basis, compared to the previous quarter’s EPS of $2.67, or $1.77, adjusted.
The company posted net revenue of $294.1 million, down 32.4% from $435.1 million in the second quarter last year, and $526.2 million last quarter.
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In the second quarter, the parent of
The company posted net revenue of $294.1 million, down 32.4% from $435.1 million in the second quarter last year, and $526.2 million last quarter.
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What the CFPB’s servicing report says about COVID forbearance requests
Delinquent borrowers who did not ask for forbearance ranged from 10% or less to more than 50%, a new study of 16 large servicers by the Consumer Financial Protection Bureau shows.
“For private loans, the rates of delinquent loans for borrowers who never requested COVID-19 hardship forbearances during the pandemic were higher — exceeding 50% for some servicers,” the bureau’s report on pandemic response metrics said.
Borrowers with private loans don’t have the same right to long-term forbearance federally-backed loans have and if their mortgages are in securitizations, their options may be limited by loan pooling and servicing agreements governing those transactions.
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“For private loans, the rates of delinquent loans for borrowers who never requested COVID-19 hardship forbearances during the pandemic were higher — exceeding 50% for some servicers,” the bureau’s report on pandemic response metrics said.
Borrowers with private loans don’t have the same right to long-term forbearance federally-backed loans have and if their mortgages are in securitizations, their options may be limited by loan pooling and servicing agreements governing those transactions.
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Sagent, Figure team up to bring blockchain to mortgage servicing
Blockchain technology could make its way into certain components of mortgage servicing if the agreement between Sagent Lending Technologies and Figure Technologies works as planned.
"We're partnering with Figure to bring our deep mortgage servicing expertise together with their modern tech stack and their Provenance Blockchain to essentially create new technology,” said Sagent CEO and President Dan Sogorka.
As part of the deal, Figure's mortgage servicing portfolio will move ontoSagent's platform. The second part involves bringing mortgage assets onto the Provenance Blockchain that Figure developed.
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"We're partnering with Figure to bring our deep mortgage servicing expertise together with their modern tech stack and their Provenance Blockchain to essentially create new technology,” said Sagent CEO and President Dan Sogorka.
As part of the deal, Figure's mortgage servicing portfolio will move onto
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Rocket Cos. launches home buying and selling platform
Rocket Homes, the real estate arm of Rocket Cos. , is building an all-encompassing platform for home buyers and sellers alike.
The site will incorporate a property searching function, a network of real estate agents and partners across the country, credit reporting, by-owner sales listings and closing and settlement servicesthrough Amrock , a direct connection to Rocket Mortgage for lending. It will include a yet-to-be-released iBuyer channel.
“There are very few organizations, if any, that have our reach,” Rocket Homes CEO Doug Seabolt said in an interview. “Buying or selling a home is stressful, it can be confusing and I honestly think it’s too complicated. We are always trying to eliminate that.”
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The site will incorporate a property searching function, a network of real estate agents and partners across the country, credit reporting, by-owner sales listings and closing and settlement services
“There are very few organizations, if any, that have our reach,” Rocket Homes CEO Doug Seabolt said in an interview. “Buying or selling a home is stressful, it can be confusing and I honestly think it’s too complicated. We are always trying to eliminate that.”
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