Brena Swanson is the Digital Reporter for HousingWire.com, providing expert coverage on Millennials, lending and housing. Brena joined the HousingWire news team in February 2013, also serving in the roles of Reporter and Content Specialist. Brena graduated from Evangel University in Springfield, Missouri. Follow Brena on twitter at @BrenaSwanson.
Nonbank’s share of Federal Housing Administration-backed mortgages crossed $1 trillion for the first time in November. The news, while positive for nonbanks, is causing some in the industry to question the consequences nonbanks face if the industry undergoes any future stress.
As the industry adjusts to the Department of Housing and Urban Development’s decision to suspend the reduction of Federal Housing Administration mortgage insurance premiums, consumers are left to face the impact now. Here’s what is means for borrowers.
The Department of Housing and Urban Development’s decision to suspend the reduction of Federal Housing Administration mortgage insurance premiums didn’t come as a shocker. But while the industry knew the uncertainty surrounding the situation, they’re left divided on the issue. How much disruption will this delay cause?
Just moments after President Trump was sworn in on Friday, the Department of Housing and Urban Development announced it is indefinitely suspending the reduction of FHA mortgage insurance premiums, undoing a cut announced by the Obama administration only a few weeks ago. The suspension is effective immediately.
The highs Fannie Mae’s and Freddie Mac’s stocks experienced toward the end last year didn’t stay long. After Trump’s Treasury Secretary nominee Steven Mnuchin retreated from his original stance on privatizing the government-sponsored entities during his confirmation hearing, both GSEs’ stock tumbled as their future got called into question.
After 16 days, the State of California Franchise Tax Board nullified Fidelity National Title Company’s suspension and restored the corporation to good standing on Thursday. The impact of the suspension could hold severe consequences, ultimately delaying borrowers closing on their home.
Shortly after winning the election, Trump’s transition team posted his plan to dismantle the Dodd-Frank Wall Street Reform Act. But to Morgan Stanley CEO James Gorman, more changes could be destructive to the market. Instead, Gorman defend the controversial Dodd-Frank Wall Street Reform Act.
MGIC recorded a strong fourth quarter, posting net income of $107.5 million, or $0.28 per diluted share, which beat estimates by $0.06. However, Patrick Sinks, CEO of MTG and its primary subsidiary MGIC, explained that while the company achieved strong financial result in 2016, 2017 is not forecasted to go as well.
HouseCanary, a provider of software and analytics for the real estate industry, announced it raised $33 million in a funding round. Even more interesting is the list of investors eyeing HouseCanary, which includes participants like NBA legend Kobe Bryant.
New York is ramping up its focus on the practices of reverse mortgage lenders as of late. After introducing plans to increase the regulations surrounding reverse mortgages in the state earlier this month, New York is now reportedly also investigating practices related to the servicing of reverse-mortgages at Financial Freedom, a part of OneWest Bank, and at Champion Mortgage, a unit of Nationstar Mortgage.
While other state and federal regulatory bodies overlap in their regulation of the mortgage industry, the very particular consumer focus of the CFPB is not duplicated by any other body. Will deregulation mean a return to the Wild West lending atmosphere that led to the financial crisis? What happens next? We asked John Socknat, partner at Ballard Spahr, to weigh in on what mortgage lenders and servicers can expect from a Trump administration.
Amid the potential new direction from the White House, Congress and regulators, leadership in our industry is more important than ever. Which is why HousingWire is proud to present the 40 winners of our 2016 Vanguard award. These leaders from all segments of the mortgage ecosphere demonstrate that our industry is more than capable of meeting the challenges that lie ahead.
The marketplace is full of hard and private money lenders — it will come down to who can best assist investors in completing their goals, whether that be by providing quicker close times, or with more accurate valuations. With how many options there are for borrowers, lenders will need to start competing for marketshare as borrowers shop their situations to multiple lenders, leveraging the offers against each other. This process will force lenders to update their guidelines, or be forced out of the market.