Home shortages spur record-breaking sales, Trump-era CRA rule paused and more of the week’s top news
May 21, 2021 5:33 PM
Housing market broke 5 records in April
The housing inventory shortage is so extreme and demand is so strong that in the unlikely event that both trends were to reverse course, it will remain a historically strong sellers' market, a Redfin report said.
Five records were set in April, including the national median sales price reaching an all-time high of $370,528, an increase of 5.1% over March's $356,175, and 22.2% over approximately $303,000 in April 2020.
Read thefull story here.
Five records were set in April, including the national median sales price reaching an all-time high of $370,528, an increase of 5.1% over March's $356,175, and 22.2% over approximately $303,000 in April 2020.
Read the
Bloomberg News
OCC hits brakes on rollout of Trump-era CRA rule
The Office of the Comptroller of the Currency on Tuesday halted the implementation of its 2020 rule overhauling the Community Reinvestment Act.
“The OCC has determined that it will reconsider the June 2020 rule,” the agency said in a bulletin. The move waswidely anticipated by analysts after President Biden's victory in November, and came just days after the administration appointed acting Comptroller Michael Hsu.
Read thefull story here.
“The OCC has determined that it will reconsider the June 2020 rule,” the agency said in a bulletin. The move was
Read the
Duty to serve proposals draw mixed reviews
The Federal Housing Finance Agency has released the first long-term Duty to Serve proposals submitted by Fannie Mae and Freddie Mac since the pandemic, and initial reactions largely reflect disappointment that the plans don’t do more to increase financial support for underserved borrowers.
The tentative low-income and rural market goals for 2022 generally show Fannie and Freddie plan to aim lower in some niches but higher in others as the economy opens up.
Read thefull story here.
The tentative low-income and rural market goals for 2022 generally show Fannie and Freddie plan to aim lower in some niches but higher in others as the economy opens up.
Read the
Up to $20 billion in investor loans to go private market
The substantial volume of investor loans that the government-sponsored enterprises will no longer buy can likely be absorbed by the private market, a recent report suggests.
Roughly $10 billion to $20 billion annually in non-owner-occupied mortgages will need a new outlet following Fannie Mae and Freddie Mac’s 7% cap on purchases of such loans per year, Kroll Bond Rating Agency reported Friday. While that estimate is significant, it may not overwhelm the non-agency market or even necessarily hurt interest rates, analysts said.
Read thefull story here .
Roughly $10 billion to $20 billion annually in non-owner-occupied mortgages will need a new outlet following Fannie Mae and Freddie Mac’s 7% cap on purchases of such loans per year, Kroll Bond Rating Agency reported Friday. While that estimate is significant, it may not overwhelm the non-agency market or even necessarily hurt interest rates, analysts said.
Read the
Housing shortage will restrict growth, says Fannie Mae
As vaccination rates climb and restrictions lift, the economy’s rebound should continue into the summer, but encumbrances to growth likely hamper the mortgage market into next year.
Moderate employment gains coupled with severe supply shortages — both in lumber and for-sale homes — and an “unexpectedly strong burst” of inflation limit potential lending activity , according to Fannie Mae SVP and chief economist Doug Duncan. Even Fannie’s most recent Sentiment Index showed that potential homebuyer optimism hit an all-time low due to the scarcity of listings.
Read thefull story here .
Read the
Bloomberg News
Senators still can't agree on flood insurance reform
Long-term flood insurance reform has eluded Congress for years. Lawmakers have had to pass short-term reauthorizations of the National Flood Insurance Program 16 times since 2017 just to keep the program operating.
Senators debated the program's future yet again Tuesday as the federally backed program faces another funding deadline at the end of September. But it remains to be seen if Republicans concerned about the program's cost can compromise with lawmakers in both parties from flood-prone areas.
Read thefull story here.
Senators debated the program's future yet again Tuesday as the federally backed program faces another funding deadline at the end of September. But it remains to be seen if Republicans concerned about the program's cost can compromise with lawmakers in both parties from flood-prone areas.
Read the
Bing Guan/Bloomberg
U.S. sales of preowned homes fall for a third month
Sales of previously owned U.S. homes dropped unexpectedly in April for a third straight month as an inventory crunch pushed up prices by the most on record and restrained purchases.
Contract closings decreased 2.7% from the prior month to an annualized 5.85 million, the slowest pace since June, according to Friday data from the National Association of Realtors. The median forecast in a Bloomberg survey of economists called for a 6.07 million rate in April.
Read thefull story here.
Contract closings decreased 2.7% from the prior month to an annualized 5.85 million, the slowest pace since June, according to Friday data from the National Association of Realtors. The median forecast in a Bloomberg survey of economists called for a 6.07 million rate in April.
Read the
Two Connecticut men face mortgage fraud allegations
Two property management company employees allegedly defrauded Freddie Mac and CBRE Capital Markets by submitting false information to apply for a multifamily loan , according to a press release issued by the U.S. Attorney’s office in the District of Connecticut on Wednesday.
Jacob and Aron Deutsch, employees of BH Property Management LLC, were charged with federal conspiracy, fraud and false statement offenses related to the refinancing of a mortgage on two Hartford properties. More specifically, the two were arrested based on charges of mail and wire fraud and making false statements.
Read thefull story here .
Jacob and Aron Deutsch, employees of BH Property Management LLC, were charged with federal conspiracy, fraud and false statement offenses related to the refinancing of a mortgage on two Hartford properties. More specifically, the two were arrested based on charges of mail and wire fraud and making false statements.
Read the
Mortgage volume rises on refinance activity
Mortgage applications climbed for a second week in a row , primarily on the back of a refinancing wave, despite rising interest rates, according to the latest data from the Mortgage Bankers Association.
The association’s Market Composite Index, which tracks the volume of mortgage applications based on its survey of lenders, rose a seasonally adjusted 1.2% from the previous week for the week ending May 14. The unadjusted increase came in at 1%. Total application volume showed a 0.4% decrease compared to the same period one year ago.
Read thefull story here.
The association’s Market Composite Index, which tracks the volume of mortgage applications based on its survey of lenders, rose a seasonally adjusted 1.2% from the previous week for the week ending May 14. The unadjusted increase came in at 1%. Total application volume showed a 0.4% decrease compared to the same period one year ago.
Read the
GSE risk management strategy shows resilience
Credit risk transfers used by Freddie Mac to manage distressed mortgage risk staged a relatively quick rebound after faltering in 2020, a new Federal Housing Finance Agency report published Monday finds.
Although capital markets disruption from the pandemic, refinancing anda new capital rule all posed challenges for CRTs, the one government-sponsored enterprise that returned to the market after a few months’ absence was able to exceed 2019 issuance levels by year-end.
Read thefull story here.
Although capital markets disruption from the pandemic, refinancing and
Read the
Delinquencies should fall to pre-COVID levels in 2021
Mortgage delinquencies slipped below 5% for the first time since the pandemic began and are on pace to return to pre-COVID levels by year-end, Black Knight's First Look report noted.
"As the economy gets back on track, we're churning through a lot of the distressed inventory of mortgages," a Black Knight representative said in an email. "At the current rate of improvement, overall delinquencies should be back to pre-pandemic levels by the end of 2021."
Read thefull story here.
"As the economy gets back on track, we're churning through a lot of the distressed inventory of mortgages," a Black Knight representative said in an email. "At the current rate of improvement, overall delinquencies should be back to pre-pandemic levels by the end of 2021."
Read the
30-year interest rate hits 3%
The 30-year fixed-term mortgage rate average reversed course , heading upward for the first time in three weeks, after Federal Reserve officials suggested monetary policy changes may be due later this year.
After the average 30-year-fixed rate bubbled under the 3% level for a month, it finished the weekly period ending May 20 at 3%, according to Freddie Mac’s weekly Primary Mortgage Markets Survey. The rate climbed from 2.94% the previous week, but still sits lower than the 3.24% from one year ago.
Read thefull story here.
After the average 30-year-fixed rate bubbled under the 3% level for a month, it finished the weekly period ending May 20 at 3%, according to Freddie Mac’s weekly Primary Mortgage Markets Survey. The rate climbed from 2.94% the previous week, but still sits lower than the 3.24% from one year ago.
Read the
NewRez, Mr. Cooper, Embrace make hiring moves
Lender and servicing provider NewRez, headquartered in Fort Washington, Pennsylvania, has hired Rajinder Singh as chief risk officer, as it attempts to emphasize risk-management practices throughout its operations. Singh will be responsible for overseeing and developing risk-management infrastructure and processes in the elevated executive role. He previously led risk-management teams at Genworth, Citigroup, GM Financial, and GE Capital. NewRez is a unit of New Residential Investment, which has discussed spinning off NewRez into its own publicly traded corporation.
Read thefull story here.
Read the
How to find an affordable home
Finding a house to buy is tricky today. Finding one that’s affordable to both buy and support the costs of long-term ownership is even trickier. Inventory is tighter than ever , and home values have risen extremely fast in the past year.
The median home price of more than $278,000 in the first quarter of 2021 is one of the highest since the last housing cycle peaked at $215,000 in the third quarter of 2006, according to Attom Data Solutions.
Read thefull story here.
The median home price of more than $278,000 in the first quarter of 2021 is one of the highest since the last housing cycle peaked at $215,000 in the third quarter of 2006, according to Attom Data Solutions.
Read the
