Category Archives: Home builders

Student Debt Undermining Millennial Homeownership

Posted To: MND NewsWire

A new study is providing more evidence that student debt is disrupting the lifecycle of the housing market. The survey, conducted jointly by the National Association of Realtors (NAR) and the non-profit American Student Assistance (ASA), found that an overwhelming majority of millennials with student debt currently do not own a home. They blame this debt for what they typically believe will be a seven-year delay in homeownership. And it isn’t just homeownership that is suffering. The survey also revealed that student debt is holding back millennials from financial decisions and personal milestones. These include adequately saving for retirement, changing careers, continuing their education, marrying and having children. Despite being in their prime homebuying years, only 20 percent of the survey…(read more)

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MBS RECAP: Bonds Tune Out Competing Voices to End Flat

Posted To: MBS Commentary

Between the overnight session and domestic trading hours, the following voices tried to get inside the head of bond markets: A North Korean missile launch asked bonds to rally from “safe haven” demand. They sorta did at first. Hawkish comments from a British central banker asked global bond yields to move higher. US Treasuries sorta complied Weaker Retail Sales data opened the door for bonds to rally in the morning. They began to walk through. The 9:30am NYSE tradeflows and stronger inflation expectations in the 10am Sentiment data said “not so fast” to the bond rally. Bonds heeded the warning And finally, an ongoing stock rally provided justification for bonds to weaken all day long, but they did nothing of the sort. Despite all of the above, 10yr yields hit the 3pm closing…(read more)

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CFPB – "Regulation by Enforcement," or Business as Usual?

Posted To: MND NewsWire

The Consumer Financial Protection Agency (CFPB) does not provide guidance to the financial institutions it regulates. Instead it has evolved into a regime of “regulation by enforcement.” At least that is the conclusion of a white paper written for the Mortgage Bankers Association by its counsel at the law firm of Covington & Burling, LLP. The paper, titled CFPB 2.0: Advancing Consumer Protection, looks at the performance of the agency during its first five years and takes a particularly jaundiced view of Director Richard Cordray’s promises for the agency versus its perceived performance. “The CFPB has done well where it’s developed rules that focus on the worst excesses of the pre-crisis market,” said David H. Stevens, President and CEO of MBA. “However, the Bureau has too-often opted for…(read more)

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Jumbo Product, Lender Tax Credits; Disaster Updates

Posted To: Pipeline Press

Disaster-related news continues to be front-and-center for obvious reasons. HUD announced it will speed federal disaster assistance to the State of Florida and provide support to homeowners and low-income renters forced from their homes due to Hurricane Irma. In addition, HUD is Granting immediate foreclosure relief (link) Making mortgage insurance available (link) Making insurance available for both mortgages and home rehabilitation (link) Assisting the State of Florida and local governments in re-allocating existing federal resources toward disaster relief (link) Offering Section 108 loan guarantee assistan (link) Freddie Mac is suspending all foreclosure sales through Dec. 31, 2017 in areas that the FEMA has declared eligible disaster areas because of hurricanes Harvey and Irma. In addition…(read more)

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Mortgage Delinquencies Remain Low in June

Posted To: MND NewsWire

CoreLogic reported on Tuesday that the national mortgage delinquency rate in June was again the lowest in nearly a decade . The company’s Loan Performance Insights Report for the month shows 4.5 percent of outstanding mortgages were in some stage of delinquency, that is 30 or more days past due or in foreclosure. This is an 0.8 percentage point decline since June 2016 when the rate was 5.3 percent. The rate for early-stage delinquencies, defined as 30-59 days past due, was 2.0 percent in June 2017, down from 2.1 percent in June 2016. The share of mortgages that were 60-89 days past due in June 2017 was 0.6 percent, also down slightly from 0.7 percent in June 2016. CoreLogic notes that early-stage delinquencies can be volatile so it also looks at transition rates . The share of mortgages that…(read more)

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Equifax: Turning a Crisis into an Opportunity

Posted To: MND NewsWire

If anything could be worse than half of the adults in the country having their personal and credit information hacked and stolen, it could be the way the company from whom it was stolen has handled it. Equifax, one of the nation’s three major credit reporting companies, was the target of hackers this spring and, by all accounts, is more concerned about its bottom line than its customers’ security. What should be the most important details of the story are that the intrusion took place between May and July of this year and the credit records of 143 million people may have been affected. To put this in perspective, the Census Bureau estimates the population of the U.S. is 321 million. Thieves took Social Security numbers, birth dates, addresses as well as driver’s license numbers. In some cases…(read more)

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Harvey Loan Losses Could Top Katrina's

Posted To: MND NewsWire

While Irma is battering the Florida coast and costing untold billions in damages, Black Knight Financial Services released information about the ultimate costs to the housing finance industry of Hurricane Harvey. The disaster that struck primarily in the Houston/Port Arthur/Beaumont, Texas area may affect mortgage performance more than did Hurricane Katrina in 2005. Both the magnitude of the rainfall, which hit 50 inches in some locations, and the population of the area magnified the Hurricane’s impact. The current edition of Black Knight’s Mortgage Monitor says the FEMA-designated disaster areas have over twice as many mortgaged properties as did the areas ravaged by Katrina, 1.18 million properties versus 456,000, and at $179 billion, nearly four times the unpaid principal balance. The government…(read more)

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MBS RECAP: More About Consolidating Gains Than New Weakness

Posted To: MBS Commentary

With an absence of significant economic events and the storm of the century bearing down on the Southeast, trading activity was understandably a bit lighter than yesterday. After a bit of morning volatility, bonds settled into a sideways pattern that left most of the week’s gains intact. Bonds were actually stronger in the overnight session, despite European bond markets losing ground. That weakness followed headlines that suggested the ECB was a little farther along in mapping out its tapering plans than Draghi admitted yesterday. Not a huge deal, but somewhat relevant and just a little bit bearish for the bond complex. US bond markets didn’t weaken until 8:20am (the CME open) and then again after 9:30am (the NYSE open). The fact that weakness waited for these two time frames suggest…(read more)

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Quantitative Easing Did Affect Risk-Taking, Lending Standards

Posted To: MND NewsWire

In response to the 2007-2008 financial crisis and the ensuing Great Recession, some central banks, including the U.S. Federal Reserve, put some unconventional monetary policies in place. Among these policies were large-scale asset purchase programs (LSAPs) which are more commonly referred to in the U.S. as quantitative easing (QE) measures. The Fed put three waves of QE in place. Use of these measures has led to debates about their effects on economic outcomes in general and especially financial stability, with proponents emphasizing that they increased confidence and risk taking and therefore stimulated overall economic activity and sped up the recovery. Critics argue these policies were ineffective or inefficient and that they may have set the stage for the next financial crisis by encouraging…(read more)

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More Homeowners Saying "Good Time to Sell"

Posted To: MND NewsWire

Consumer sentiment regarding whether it is a good time to buy or to sell a home continues to diverge as rising home prices impact both. Fannie Mae said net positive responses in its August National Housing Survey (NHS).to whether it is a good time to sell rose 8 points while the good time to buy sentiment declined by 5, adding to its 7 point drop in July. At 18 percent, the latter response set its second new low in as many months, and is down 16 percentage points from August 2016. The good time to sell response hit its second consecutive all-time high at 36 percent and widen the gap between the two sentiments even further. The net good time to sell responses are now 21 points higher than last year, “In the early stages of the economic expansion, home selling sentiment trailed home buying sentiment…(read more)

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