The Key to Reducing Post-Refi Boom Borrower Churn

In this webinar, PRMG Chief Lending Officer Kevin Peranio will help attendees sort through the right technologies as he shares the tech investments that have had the biggest impact on his business.

Tracey Velt breaks down the latest RealTrends 500 rankings

During the episode, Velt highlights which brokerages achieved top rankings in both categories for 2020, and shares what stood out to her the most about the rankings.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

About 7M refi candidates missed the “forever rate” boat

Rates jumped to 3.17% last week and Black Knight reported that there are now just 11.1 million “high quality” refi candidates. The smallest number of potential refi candidates in a year.

Mortgage

David Stevens: Calabria may be “the absolute worst person for this job at this time”

Stevens calls FHFA Director Mark Calabria's recent comments on forbearance blasphemous

Over the last several weeks, the housing industry’s finance sector has lobbied the government to set up a federally-backed liquidity facility for U.S. mortgage servicers to address a substantial increase in forbearance requests from the nation’s financially strained borrowers. HousingWire Digital Producer Alcynna Lloyd sat down with the former head of the Federal Housing Administration and former Mortgage Bankers Association President David Stevens, who now serves as CEO at Mountain Lake Consulting to gauge his thoughts on whether or not the government has done enough to address the issue.

Below you will find two of the six questions Stevens answered with the full audio in a video at the end. This interview has been lightly edited for length and clarity.

Alcynna Lloyd: You have been very outspoken on the forbearance issue and what the Federal Housing Finance Agency and GSEs should be doing. Do you think their recent efforts have been enough to address the industry’s forbearance concerns?

David Stevens: I’m glad they did something, but it’s a little bit late. We already saw significant credit tightening as a result of the FHFA not stepping in. Instead of having servicers be required to advance forbearance payments for the full term of forbearance, they kept it at four months only at which point the GSEs would then take over the advance requirements. The problem is that in that four-month period, we could see an extraordinary amount of liquidity being advanced, and unlike other forbearance programs that have existed prior to the CARES Act, I don’t think we’ll get any repayment back until the borrower ends his or her forbearance plan and begins to repay their advances, which could take months or years. So, there’s still an outrageous amount of liquidity being advanced for servicing that Freddie Mac and Fannie Mae own, and it’s putting a really outrageous amount of liquidity pressure onto the nonbank community.

Alcynna Lloyd:  FHFA Director Mark Calabria recently said that no nonbank is too big to fail and that he expects forbearance requests to remain at low. The industry has said otherwise and data shows that forbearance has already passed Calabria’s projections. Do you think anyone can change Calabria’s mind or philosophy?

David Stevens: Mark is a libertarian. His perspective is that the government should not intervene in housing markets, and he’s been very vocal over the years about the role of FHA and the GSEs being too big. I believe he is exercising his economic philosophy that the markets will improve without intervention. I think his recent comments were blasphemous and they aided in additional tightening of credit. The statements also reflect his lack of experience in the business. He’s never been in the industry; he’s always been an economist. I’ve seen much more aggressive positions taken about his job right now. I think Mark is being naive, and putting the housing finance system at risk. More importantly, this is going to have huge negative pressure on an economy that’s already struggling. The housing system is 40 basis points of the gross domestic product and about a fifth of GDP is housing. This will be a core component of economic recovery, and you want it to be strong as we go back to work. Mark is doing anything but providing that support.

The rest of this content is for HW+ members. Join today with an HW+ Membership! Already a member? log in

HW+ includes weekly long-form digital content, HousingWire Magazine, access to HousingStack, and free admission to all HousingWire virtual events.

Most Popular Articles

Millions will enter housing market in 2021: Zillow

Up to 2.5 million households could enter the housing market in 2021, per Zillow. The buyers will descend on the “secondary cities” across the U.S.

Apr 07, 2021 By

Latest Articles

William Raveis ain’t no stinkin’ iBuyer

Like others, resi brokerage & lender William Raveis is happy to buy your home. But its new program doesn’t mean it’s an iBuyer.

Apr 09, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please