Monday Morning Cup of Coffee: MBA president calls for action on National Flood Insurance Program

MBA's Stevens calls on mortgage industry to rise up

Monday Morning Cup of Coffee takes a look at news coming across HousingWire’s weekend desk, with more coverage to come on larger issues.

In a recent LinkedIn post, Mortgage Bankers Association President and CEO David Stevens called on mortgage and real estate professionals to voice their opinions to the U.S. House of Representatives on the upcoming expiration of the National Flood Insurance Program. The program is set to expire on Sept. 30 and its reauthorization is expected to come up after the August recess. The MBA’s call-to-action outlines three priorities it wants to ensure make it into the final version of the House bill:

  1. Long-term reauthorization: A long-term extension of the NFIP is vital to provide certainty to homeowners and small businesses that depend on the program for flood damage protection, to protect our residential and commercial real estate markets and to provide stability for the companies and agents that sell and administer NFIP policies to millions of consumers across the country.
  2. Exemption for commercial and multifamily properties: Imposing the NFIP structure which was designed for "one borrower, one home, one policy" on commercial and multifamily transactions is difficult for borrowers and lenders. The current limit of $500,000 for commercial and multifamily properties is insufficient based on the value of many of the properties in question.
  3. Development of the private flood insurance market: In order to ensure a stable, affordable and sustainable flood insurance market, a private market for flood insurance must be allowed and encouraged to develop. Increasing private sector involvement also could benefit consumers by expanding available insurance coverage options, lowering costs and increasing the number of at-risk properties that are insured.

According to estimates, U.S. gross domestic product looks to continue its steady increase in Q3 of 2017 during the current presidential administration.

The Federal Reserve Bank of Atlanta’s most recent GDPNow estimation from Aug. 16 puts Q3 GDP at 3.8%, up slightly from its previous estimation of 3.5%, released on Aug. 10. The recent adjustment to the estimation was made after housing starts, retail trade and export and import prices were factored in. The Q3 data is not yet final as the Atlanta Fed's GDPNow forecast is a model-based projection and not subject to judgmental adjustments.

Michigan-based Northpointe Bank is now expanding its portfolio to include a private-label mortgage solution for community banks and credit unions nationwide.

The channel, known as Northpointe Community Lending, will be led by Neil Armstrong, senior vice president of community lending, and provide compliance support, expanded products and delivery solutions.

“We’ve found that many organizations are not fully aware of their cost to do business as it relates to their mortgage book of business,” Armstrong said. “Northpointe Community Lending provides a unique solution that creates variability in their mortgage platform, and reduces their compliance risk.”

Over the weekend, Business Insider published a list of "19 things Millennials are killing," including things like banks and homeownership, to more surprising things like napkins and fabric softener.

The list posits that there are many complex reasons for the generational group’s preferences, including that some Millennials are “psychologically scarred” from the recession.

Here are a few of the items from the list:

From the article:

Homeownership is hitting record lows among millennials. 

"We believe the delay in homeownership is due to tighter credit standard and lifestyle changes, including delayed marriage and children," wrote Michelle Meyer, a US economist at BAML, in a recent note.

"We do not expect these factors to change in the medium term, keeping the homeownership rate low for young adults."

From the article:

While banks themselves will probably never die, bank branches and physical bank locations may soon be a thing of the past.  

Nearly three-quarters of millennials with a bank account visit a branch once or less per month, according to BI Intelligence data. And, slightly less than 40% of millennials do not visit physical banks at all. 

Fabric softener
From the article:

Liquid fabric softener sales fell 15% in the US between 2007 and 2015, the Wall Street Journal reported. Market leader Downy fell 26% in the same period. 

According to Downy maker Procter & Gamble's head of global fabric care, millennials "don't even know what the product is for." 

That's all for now, be sure to check back throughout the week for all the latest news and announcements on housing finance. 

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