Economy

A former insider wants the Federal Home Loan Bank System's regulator to require its 11 regional banks to balance members' liquidity needs with the system's public mission to fund affordable housing and community development programs.

The rate of increase cooled for the 14th straight month in June, dropping over 10% year over year, according to CoreLogic.

Key data points have shown price and wage pressures continue to dissipate, which should bolster the case for an end to rate increases, but strong labor-market activity may keep policymakers uneasy.

The post-close review timeline gets shorter and new pre-funding checks become required on Sept. 1.

Some respondents reprised calls for a return to more flexible capital rules and portfolio-level cross-subsidization. Others see danger in such a move.

But overall volume is still expected to be 38% lower than 2022's commercial real estate originations, as higher interest rates remain a drag.

Residential starts increased 3.9% last month to a 1.45 million annualized rate, according to government data released Wednesday.

Removing such debt information from consumer reports generated an uptick in home loan inquiries in one study and other industries have found advanced score use pays off.

Industry executives coming off a tough year are wondering what the transition will cost and how many borrowers it'll bring in.

This first step in updating borrower assessments was seen as the easiest and could reduce costs, but stakeholders fear change that reduces data inputs.

The Agency, a brokerage with a leading role in a Netflix show, names New American Funding their preferred mortgage provider, stripping that title away from CrossCountry Mortgage.

The cohort is outperforming the broader market — up more than 50% year-to-date versus the S&P 500's 18% gain. 

Denver-based Proprietary Capital, who offers a platform for institutional investors seeking returns from mortgage-related assets, agreed to purchase the New Jersey-based lender as it seeks to increase the number of opportunities it offers.

Their links to the Treasury have been considered a source of strength and still are, but less so, according to one rating agency. Others disagree.

But a Zillow economist argues that there's plenty of evidence suggesting strong GDP and job growth had more to do with the increase than what Fitch did.

The move was "not being driven by fundamental credit, capital or liquidity deterioration at the firms," the firm said.

But the government-sponsored enterprise is still concerned about the fiscal health of its lender counterparties as volumes are down considerably from last year.

The sector is well-positioned for further volume growth into next year, analysts led by Anthony Pettinari said in a note to clients Monday.

The association thinks this could simplify and manage the costs of two new pending credit requirements by allowing companies to add the one that's been through a price hike second.

There's divergence of opinions between one more rate hike this cycle and no further actions.