Google gets into mortgage tech, Guild's IPO launches, QM patch use extended and more of the week's top news
October 23, 2020 5:15 PM
GSE exemption to stay in place until underwriting rule finished
The Consumer Financial Protection Bureau confirmed that loans backed by Fannie Mae and Freddie Mac will remain exempt from the agency's Qualified Mortgage standard until the bureau finishes rewriting the QM rule.
The bureau's decision announced Tuesday is intended to provide breathing room for the mortgage market that had feared a quick end for the exemption before the CFPB makes key changes sought by the industry to the underwriting rule. (Read full storyhere .)
The bureau's decision announced Tuesday is intended to provide breathing room for the mortgage market that had feared a quick end for the exemption before the CFPB makes key changes sought by the industry to the underwriting rule. (Read full story
Mortgage applications dip, but low rates keep buyer demand strong
Mortgage applications decreased 0.6% from one week earlier, although a slight drop in purchase volume belied the fact that consumers are taking advantage of the current rate environment, according to the Mortgage Bankers Association. (Read full story here .)
Google gets into the mortgage game with Roostify
This week, Google announced its partnership with Roostify in launching Lending DocAI, software that captures and extracts information from mortgage documents. The technology is Google's first-ever product for the financial services sector. (Read full story here. )
Bidding wars boom as homes spend as little as 4 days on the market
About 56.3% of U.S. properties underwent bidding wars in September, down from August's revised rate of 59.1%. But the competitive share once again quintupled the year-ago rates : in September 2019, only 11% of home sales underwent bidding wars. (Read full story here .)
Guild's IPO downsized, prices under expected range
Guild Holdings' IPO went live this week. Its downsized initial offering will bring in $64 million less than expected if all the shares, including the underwriters' option, are sold. The deal priced at $15 per share for 6.5 million shares, plus an underwriters' option of an additional 975,000 shares. If the option is exercised, the proceeds will total $112.1 million. (Read full story here .)
Fannie Mae extends purchasing loans in forbearance
The Federal Housing Finance Agency originally decreed in April that the GSEs could purchase forborne mortgages in order to ease origination pressure amid stricter underwriting standards from lenders. Now the rule has been extended. For a mortgage in forbearance to be eligible for purchase or mortgage-backed security execution by Fannie Mae, the loan must have been closed between Feb. 1 and Nov. 30 and cannot be delinquent for more than 30 days at the time of submittal. Only purchase and limited cash-out refinances qualify. Cash-out refinances are not eligible. (Read full story here .)
Senate Democrats' bill would ban discrimination in financial services
Senate Democrats are proposing to apply the Civil Right Act's ban on discriminating against customers to the banking system.
The landmark 1964 law bans discrimination on the basis of race, color, religion, or national origin at places of "public accommodation" — including hotels and restaurants — but it did not include financial institutions.
A bill introduced by Sens. Sherrod Brown of Ohio, Tina Smith of Minnesota, Cory Booker of New Jersey, Elizabeth Warren of Massachusetts and Chris Van Hollen of Maryland would change that, prohibiting financial institutions from discriminating on the basis of race, religion, national origin, sex, gender identity or sexual orientation. (Read full storyhere .)
The landmark 1964 law bans discrimination on the basis of race, color, religion, or national origin at places of "public accommodation" — including hotels and restaurants — but it did not include financial institutions.
A bill introduced by Sens. Sherrod Brown of Ohio, Tina Smith of Minnesota, Cory Booker of New Jersey, Elizabeth Warren of Massachusetts and Chris Van Hollen of Maryland would change that, prohibiting financial institutions from discriminating on the basis of race, religion, national origin, sex, gender identity or sexual orientation. (Read full story
States scramble to issue mortgage, rent aid before year's end
With each state using its own discretion in the distribution of the $150 billion Coronavirus Relief Fund, some of the money is still available for mortgage and rental payments. Since those CARES Act funds must be used before year’s end, many states are scrambling to ensure the money gets used in time.
“That puts a lot of pressure on these programs,” said Stockton Williams, executive director of the National Council of State Housing Agencies. “The demand in most states is far in excess of what is available and going to be available.” (Read full storyhere .)
“That puts a lot of pressure on these programs,” said Stockton Williams, executive director of the National Council of State Housing Agencies. “The demand in most states is far in excess of what is available and going to be available.” (Read full story
CoreLogic posts record revenue for 3Q, makes case against hostile bid
After posting record revenue for the third quarter, CoreLogic's management team once again looked to make the case against the $66 per share hostile bid by Senator Investment and Cannae Holdings.
"CoreLogic is firing on all cylinders," Frank Martell, president and CEO, said during the company's earnings call. "We are exiting 2020 with accelerating momentum and believe that we're well positioned to capitalize on the many value creation opportunities to drive continuing organic growth and margin gains." (Read full storyhere .)
"CoreLogic is firing on all cylinders," Frank Martell, president and CEO, said during the company's earnings call. "We are exiting 2020 with accelerating momentum and believe that we're well positioned to capitalize on the many value creation opportunities to drive continuing organic growth and margin gains." (Read full story
James A. Johnson, former Fannie Mae CEO, dies at 76
James A. "Jim" Johnson, a former CEO of Fannie Mae and Democratic adviser, died Oct. 18, according to his company website. He was 76.
In addition to leading Fannie Mae, Johnson worked for financial firms Perseus LLC and Shearson Lehman. After departing from Fannie Mae in 1998, he started his own firm, Johnson Capital Partners, in 2001. (Read full storyhere .)
In addition to leading Fannie Mae, Johnson worked for financial firms Perseus LLC and Shearson Lehman. After departing from Fannie Mae in 1998, he started his own firm, Johnson Capital Partners, in 2001. (Read full story
