|Industry Memorializes Laurie Maggiano
During the weekend, the mortgage finance industry was saddened to learn the loss of Laurie Maggiano, an industry leader who served as the servicing and secondary markets program manager for the Consumer Financial Protection Bureau.
A Facebook post, made by her family, sharing the news of Maggiano’s death appeared on her account on Sunday. According to the post, Maggiano suffered from cardiac arrest early last week and was unable to recover.
Maggiano, a HousingWire Woman of Influence in 2012 and 2013, began her job at the CFPB in July 2013 after serving as director of policy at the Office of Homeownership Preservation at the Treasury Dept.
“I first met Laurie in 2005 while serving as FHA Commissioner. It was a privilege to work with her to address the housing needs of Americans nationwide. Most importantly, she was unyielding in her contributions to keeping at-risk homeowners in their homes during the housing crisis; for that effort countless citizens owe her a debt of gratitude, and that is a legacy of which to be proud,” said Collingwood Group co-founder and former FHA Commissioner Brian Montgomery.
David Stevens, CEO and president of the Mortgage Bankers Association, mourned Maggiano’s passing in a LinkedIn post.
“Mourning the passing of Laurie Anne Maggiano — an amazing public servant who I was privileged to work with both at Treasury and the CFPB. She had amazing integrity, work ethic and strength. This is a sudden end to a life well lived by an awesome woman. The industry mourns her death and wishes the best in prayer and strength for her family. Rest In Peace Laurie. Too soon, too sudden, and unfair,” the post read.
read more: Housingwire
The True Cost of Poor Credit for Homeowners
Borrowers with lower credit scores are likely to be paying more in additional costs in mortgage, according to LendingTree’s Mortgage Offers Report for December 2017.
According to the report by the online loan marketplace, consumers with the highest credit scores (760+) saw offered average annual percentage rates (APRs) of 4.26 percent in December, against 4.56 percent for consumers with scores of 680-719. The APR spread of 30 basis points between these score ranges was 3 points wider than in November and the widest since this data series began in April 2016.
“The spread represents nearly $15,000 in additional costs for borrowers with lower credit scores over 30 years for the average purchase loan amount of $233,586. The additional costs are due to higher interest rates, larger fees or a combination of the two,” said Tendayi Kapfidze, Chief Economist at LendingTree.
The report, which was released on Monday, indicated that December’s best offers for borrowers with the best profile had an average APR of 3.8 percent for conforming 30-year fixed purchase loans, up from 3.75 percent in November.
read more: M Report
Americans Less Confident in Housing Market at end of 2017
Americans began to feel less confident in the housing economy as 2017 came to a close, reversing the increase in optimism from the previous month, according to Fannie Mae’s Home Purchase Sentiment Index.
The index decreased two points in December to 85.8, reversing the previous increase in November. This decrease is due to a drop in four of the total six HPSI components.
The share of those who said now is a good time to buy a home decreased five percentage points from November, and eight percentage points from last year to 24 percent in December. Conversely, those who said now is a good time to sell a home remained unchanged at 34 percent, however this is up 21 percentage points from last year.
The share of those who said home prices will go up over the next 12 months decreased two percentage points in December to 44 percent, and the share of Americans who said mortgage rates will go down over the next 12 months fell one percentage point in December to -52 percent.
But despite the caution with which Americans approached the housing market, they still showed an increase in pay in their current jobs, even as they grew less optimistic about the year ahead.
read more: Housingwire
Experts Weigh in on What the 2018 Housing Market Will Bring
Before the passage of the tax bill, experts were anticipating more of the same from the housing market in 2018. The limited supply of homes for sale was the biggest issue facing the market last year and it will continue to be a problem, particularly in the entry-level market. Although some are predicting those constraints to ease, the persistent low supply is expected to keep driving prices higher. Mortgage rates were fairly static last year but most experts see them rising in the coming year.
Because the tax bill was passed after the real estate entities put out their 2018 forecasts, their projections don’t include what impact, if any, several provisions in the bill — such as the caps on the mortgage interest and property tax deductions — will have on the market. Some experts are anticipating prices won’t rise nearly as fast because of the new law. Others say it will help first-time home buyers enter the market.
read more: Washington Post
IRS Continues Repairing Income Verification System After Mortgage Industry Panic
The IRS has taken corrective actions to speed up its income verification system, avoiding a possibly crippling slowdown for the mortgage industry.
But issues related to recent changes with the system, which prompted widespread outcry from mortgage and banking groups, have not been fully resolved.
“I have been advised that the system is working well enough to keep up with current volumes,” said Anne Canfield, executive director of the Consumer Mortgage Coalition. “However, this level of performance may not be good enough as we get deeper into the 2018 home-buying season.”
read more: National Mortgage News
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