The housing market will self-correct

Posted on August 20, 2018 in Uncategorized | Add Your Voice

The housing market will self-correct

“Is something wrong? Are we starting to see some cracks in the housing market?” Charles Payne asked Tim Rood, Chairman of The Collingwood Group, during a recent television appearance on FOX Business. Remarking on the latest slowdown in the housing market, particularly in housing permits, housing starts and existing home sales, Rood said, “We are seeing some volume and momentum fall out of the housing market.” Rood reminded viewers to keep in mind, however, that the housing market has been going at a “blistering pace” for some time.

With an average of 6.5% annual home price appreciation in recent years and a severe inventory shortage, Rood said he expects the housing market to gradually self-correct. “The housing market is very balanced, and there are a lot of different levers buyers can pull to make a house more affordable,” he said, referring to prospective homebuyers’ ability to seek out more affordable mortgage products and homes in alternate locations.

To view the complete interview on FOX Business, click here.

MountainView taking bids on $3.2B Fannie/Ginnie portfolio

MountainView Financial Solutions, a Situs company, is in the market with a $3.2 billion bulk mortgage servicing portfolio backed by Fannie Mae and Ginnie Mae collateral.

According to the offering circular, the seller will consider separate bids for the Fannie and Ginnie receivables but prefers to sell the entire portfolio in one fell swoop. The Ginnie MSRs total $2.3 billion. The balance is Fannie product.

The Fannie loans are located in 28 states with Tennessee accounting for the largest chunk at 1,911 units. The FHA/VA loans underlying the Ginnie collateral are located in 50 states and the District of Columbia.

The package has overall delinquencies of 4.86 percent. MountainView has set the bid deadline at this Thursday.

Read more: Inside Mortgage Finance

Housing starts inch up in July, miss forecast

Construction on new houses increased by less than 1% in July, reflecting a recent slowdown in building that’s likely tied to higher mortgage rates and growing shortages of skilled craftsmen.

Housing starts edged up to an annual rate of 1.17 million last month from a revised 1.16 million in June, the Commerce Department said last Thursday.

Economists polled by MarketWatch had expected starts to total 1.27 million.

Permits to build new houses, meanwhile, rose 1.5% to a 1.31 million annual pace. While that’s still quite healthy, permits have also fallen off a recent post-recession peak.

Housing starts jumped 11.6% in the Midwest and 10.4% in the South, the fastest growing region in the U.S. New construction fell by 11% in the West and 4% in the Northeast.

Builders began work on new single-family homes at an 862,000 annual rate and structures with five or more units at a 303,000 clip.

The number of housing starts in July, however, was 1.4% lower compared to the same month in 2017.

Read more: MarketWatch

Washington tightens state rules for mortgage servicers, with a twist

Most servicers in the state of Washington are about to be more tightly regulated, in line with a broader trend, but certain investors in servicing-released loans will gain exemptions.

Under the new amendments to the Consumer Loan Act effective Sept. 1, servicers must inform the state’s Department of Financial Institutions (DFI) if their capital falls below GSE requirements. They also must notify DFI if they lose a government-sponsored enterprise approval, or change where records are kept.

The amended regulations also add exemptions for investors in instruments backed by pools of residential mortgages, as well as “note buyers” who purchase servicing-released mortgages, if they aren’t otherwise regulated entities.

But with the exception of a license waiver available for master servicers overseeing fewer than 25 loans, the amended regulations in Washington specify that master servicers working with subservicers or directly servicing loans, as well as subservicers, must be licensed.

Read more: National Mortgage News

Underwater homes tick up in Q2

Higher home prices have meant that homeowners have consistently gained equity at a fast pace, and the number of homeowners owing more on their mortgages than their homes could sell for has declined steeply from the dire days following the housing-market crash.

But after years of steady declines, it appears the number of underwater homes has been on the rise for the past year, Attom Data Solutions reported last week.

Seriously underwater U.S. properties – or homes whose mortgage balance exceeds the market value of the home by 25 percent or more – rose to 5.59 million in the April-June period, the fourth consecutive quarter with an increase, the company said.

Read more: Scotsman Guide

Kraninger CFPB vote rescheduled for Thursday

The Senate Banking Committee has announced that its confirmation vote for Kathy Kranginer to become the next director of the Consumer Financial Protection Bureau (CFPB) has been rescheduled for this Thursday.

The vote was originally slated for Aug. 1, but was postponed by the committee’s chairman, Sen. Mike Crapo (R-ID), without explanation. Kraninger, who is currently associate director of the Office of Management and Budget (OMB), would take over the agency’s reins from Mick Mulvaney, the OMB director who has served as the CFPB’s acting director since late November.

Read more: National Mortgage Professional

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