Origination

U.S. pending home sales fell in August for the seventh time this year, extending the housing market's downturn as high borrowing costs sideline prospective buyers.

In a policy proposal published Tuesday, Fed staffers called for supervisory changes to accommodate banks with commercial real estate loans still reeling from COVID.

The recent spike in interest rates has also led to elevated ARM activity, which accounted for over 10% of all applications.

The partnership allows prospective borrowers to upload bank or payroll information and work with loan officers online through the signing process.

U.S. sales of new homes unexpectedly rose in August, representing a break in an otherwise rapid descent this year for a housing market still at risk of further deterioration as mortgage rates climb.

The decline was "widespread" impacting eight of the nine U.S. census divisions, according to the Federal Housing Finance Agency.

The Federal Housing Administration also announced it would incorporate similar borrower history into its underwriting beginning at the end of October.

The deal with American Mortgage Services Co. comes as originations continue to slow. However, lower valuations may be limiting current M&A activity, according to some experts.

The shift to working from home drove more than half of the increase in house and rent prices during the pandemic and will likely drive up costs and inflation going forward as the shift becomes permanent, according to research from the Federal Reserve Bank of San Francisco.