Fannie Mae and Freddie Mac produced profitable third quarter financial results consistent with recent trends. The government-sponsored enterprises released third-quarter results last week, with Fannie Mae reporting a $4 billion quarterly profit and Freddie Mac reporting $3.1 billion in net income.
Home sales are on the decline despite lower mortgage rates and increasing supply, with the latest projections indicating a 30-year low for this year. Real estate brokerage Redfin reported that existing home sales fell 3.1 percent year over year in August to their lowest mark since May 2020, when the pandemic brought the housing market to a standstill. Removing that month, August sales were the lowest since 2012.
Several reports released in the past week may give mortgage underwriters and processors a reason to feel more optimistic about the possibility of more potential borrowers in the near future. The bottom line in recent data is that buying a home is slowly becoming more affordable due to a combination of lower mortgage rates and slower growth in home values.
The Federal Housing Finance Agency (FHFA) issued housing goals for Fannie Mae and Freddie Mac over the next three years. The proposed rule would establish the following benchmark levels that Fannie and Freddie would be required to meet annually between 2025 and 2027:
An increase in tappable home equity and falling mortgage rates has many industry analysts optimistic about the potential refinance market. However, others caution that consumers are becoming more cautious about taking on more debt due to escalating costs of home ownership. Technology and data provider Intercontinental Exchange (ICE) Inc. reported in its latest ICE Mortgage Monitor Report that tappable home equity reached a new high of $11.5 trillion in June, more than 9 percent above the same period a year ago.
Yes, it is, grim that is, and I am not referring to Wilhelm & Jacob Grimm. But just as they composed those fairy tales in the 1800’s, representing what might have been described as the capricious and cruel reality of daily life for most Europeans of that time, we to continue to face a housing and mortgage market that can also be described capricious.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
I really thought this would be the easiest of these views to write, and as I get down to it I realize that it is actually the hardest. Maybe this is because it is really impossible for me to separate myself from my lifetime in this business. I have been a mortgage professional longer than I’ve been a homeowner.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
As if there are not enough acronyms in the mortgage industry, the federal government has moved forward in coining a new one, QRM, this being the acronym for the newly defined Qualified Residential Mortgage. Ok, I know that everyone is thinking that all mortgages are QRM’s if they meet guidelines but in this case, the guidelines or standards which will eventually define what a QRM or “Safe” mortgage is, will differ vastly from what defined a qualifying mortgage of the past.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
The most recent past has seen the mortgage industry struggle with developing sound underwriting practices that serve to not only protect lenders against default, but to also promote affordable home ownership for all types of borrowers.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Earlier this week, someone asked my opinion as to if I thought there was any benefit in privatizing the GSE’s. Unfortunately, I was a little short on time and couldn’t go into a great length as to if I thought it desirable or not and honestly up until the conversation occurred, I hadn’t really given it a lot of thought.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
If you were active in the industry just a few years back you likely recall the days of easier lending when property values were high enough to jack up purchase prices to incorporate the use of your favorite downpayment assistance program like Nehemiah or Ameridream so that buyers had a source of funds for their required downpayment. Those days were plentiful until HUD stepped into battle to eliminate the use of seller-funded downpayment assistance programs.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
The New Year brings new challenges to our industry. Good, bad or just plain frustrating we all know that to work in this business is to continually adjust to changes and 2011 looks to be no different in this aspect.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
HUD has recently announced new lender requirements where quality control is concerned. These requirements have been set forth in ML2011-02 and outlines for lenders what new provisions need to be added to their current QC plan.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
I want to start out by wishing each and every one of you a very happy new year! I hope you were able to take some time away from the hustle and bustle of our demanding industry to enjoy some time with family and friends over the holidays.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
With the additional demands and ever changing rules and regulations that we are dealing with these days it is more important than ever to be as knowledgeable as possible in all aspects of our industry.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Written By: Stacey Sprain
As an FHA originator, processor or underwriter, it’s likely that in the ongoing foreclosure market you’ll run across a HUD REO loan at some point. The purpose of this multi-part article is to provide you with some useful information to help in your endeavors.