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Posts Tagged ‘residential mortgage’

GSEs Winding Down? Says Who?

April 5th, 2013 Comments off

In addition to guaranteeing the majority of new residential mortgages across the country, HousingWire informs MHProNews Fannie Mae and Freddie Mac, the GSEs (government-sponsored enterprises), also guarantee half of the outstanding residential mortgage debt, with the private market picking up the other half. While the Congressional Budget Office (CBO) projects that Fannie and Freddie will wind down, the return to profitability for both will likely extend their strength and longevity in the mortgage market. As the result of the rebirth of the housing market, Fannie Mae posted a gain of $17.2 billion, its largest ever; and Freddie Mac earned net income of $11 billion.

(Photo credit: Jonathan Ernst/Reuters)

Mortgage Apps Rise

December 5th, 2012 Comments off

According to Mortgage Bankers Association’s (MBA) data, refinancings accounted for 83 percent of new mortgage business, up from 81 percent the week before, as mortgage applications rose five percent, apparently with little concern for the fiscal cliff issue. Tying the all-time low, the average contract rate for a 30-year FHA-insured loan fell two basis points to 3.34 percent. Nationalmortgagenews tells MHProNews 30-year fixed rate mortgages (FRMs) with jumbo loan balances rose four points to 3.79 percent. Tracking the market since 1990, MBA’s survey covers 75 percent of the retail residential mortgage market.

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Mortgage Apps Fall, FRM Nudges Up

October 31st, 2012 Comments off

Tracking the residential mortgage applications through a composite index and covering some 75 percent of all residential applications, the Mortgage Bankers Association (MBA) says new mortgage apps fell five percent for the week ending Oct. 26 on the heels of falling 12 percent and four percent the two previous weeks, respectively. Refinancing applications fell one point to 80 percent from last week of all new business. The average 30-year fixed rate mortgage (FRM) last week stood at 3.65 percent, .02 percentage points higher than the previous week, as nationalmortgagenews tells MHProNews.

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Residential Mortgage Apps Drop

August 30th, 2012 Comments off

In research that covers 75 percent of all residential mortgage applications, the Mortgage Bankers Association (MBA) reported applications fell 4.3 percent for the week ending Aug. 24. Meanwhile, nationalmortgagenews tells MHProNews refinancings accounted for 79 percent of all applications, as compared to 80 percent the previous week and 81 percent the week before that. Lenders signed $410 billion in residential loans Q2 of this year, and are on track to fund a similar amount for this the third quarter. The 30-year conventional fixed-rate loans dropped from 3.86 percent to 3.80 percent last week.

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Congressional Hearing Set on Dodd-Frank Impact

July 6th, 2012 Comments off

The Manufactured Housing Institute (MHI) will testify before the House Financial Services Subcommittee on Financial Institutions and Capital Markets July 11 concerning the impact of Dodd-Frank on residential mortgage reforms. Clayton Homes General Counsel Tom Hodges, representing MHI during the hearing, will address the measure’s unintended consequences that limit credit availability for purchasers of manufactured housing, and will discuss the benefits of HR 3849, the bi-partisan Preserving Access to Manufactured Housing Act sponsored by Reps Stephen Fincher, Joe Donnelly, and Gary Miller. Other organizations in attendance include Mortgage Bankers Association (MBA), National Association of Homebuilders (NAHB), and the National Association of Realtors (NAR). MHProNews.com has leaned MHI is the only MH industry association to testify.

(Photo credit: MHProNews)

Refis Reduce Mortgage Term

June 14th, 2012 Comments off

Bloomberg News says following the burst of the housing bubble that put almost 25 percent of U. S. mortgages underwater, home equity in the first quarter rose to $6.7 trillion, its highest level since 2008, as homeowners refinanced their mortgages in droves, the biggest jump, percentage wise, in 60 years. According to Freddie Mac, 50 percent of the mortgages in the fourth quarter reduced loan size, another record. Richard DeKaser, of the American Banker’s Association (ABA), says, “The willingness of homeowners to carry housing debt has been radically altered. When the market was booming, a mortgage was used as a leveraging tool, and now it’s seen as a risk.” Federal Reserve data shows residential mortgage hit its high point of $10.6 trillion in 2007, but has since fallen seven percent while residential property value has fallen 23 percent. The average mortgage term fell two years, to 27 years, from Feb. 2012 to March. MHProNews has learned 79 percent of all mortgage applications in April were for refinancing to take advantage of rock bottom interest rates.

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MBA Wants the 20 Percent QRM Proposal Dropped

January 24th, 2012 Comments off

Mortgage Bankers Association (MBA) chief executive David Stevens, noting the current 20 percent downpayment requirement is “a direct attack on first-time homebuyers, African-American borrowers and Latinos”, says it will make it more difficult to attract teachers, firefighters, and healthcare workers to new jobs in communities. NationalMortgageNews tells MHProNews.com Stevens says banking regulators want the QRMs (qualified residential mortgage) requirement, that it is not part of Dodd-Frank legislation. According to the MBA, 80 percent of first-time home buyers have downpayments of less than ten percent. Given the uncertainty of the future of Fannie Mae and Freddie Mac, it is vitally important that a private mortgage securitization process be developed. Dropping the down payment and debt-in-income requirement would insure that only owner-owner occupied, fully documented, and fully amortizing mortgages would be exempt from the five percent risk retention restriction.

(Photo credit: Mortgage Bankers Association)