The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

Inside Look: RealTrends 2021 Brokerage Compensation Study

Steve Murray, senior advisor to RealTrends, gives an exclusive first look at the 2021 RealTrends Brokerage Compensation Report.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

How lenders can prepare for increasing regulatory pressures

As compliance becomes an increased focal point for mortgage lenders and investors, staying ahead of state and federal regulations can be the difference between a flourishing business and one mired in fines.

Politics & Money

Fed says expect low rates through 2023

The central bank pledges to continue bond-purchasing program that have driven down financing costs

The Federal Reserve left its overnight lending rate unchanged on Wednesday at the end of its last meeting before the Nov. 3 presidential election and said it expects to keep it near zero for more than a year.

In a statement released Wednesday, all 17 members of the Federal Open Market Committee said they expect to keep the central bank’s benchmark rate near zero at least through next year, and 13 estimated it would stay there through 2023.

That will be a boost for homebuilders taking out business loans, and will keep rates low for home equity loans tied to prime rates, which are benchmarked to the Fed rate.

The committee also reiterated its commitment to purchase mortgage-backed securities and Treasuries to support the flow of credit. Fed purchases have helped to drive mortgage rates to the lowest level on record by boosting competition for the bonds, which compresses yields.

“Over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses,” the FOMC said in its statement.

In the first meeting since last month’s overhaul to its inflation policy, the committee provided more specifics.

“The committee will aim to achieve inflation moderately above 2% for some time so that inflation averages 2% over time and longer-term inflation expectations remain well-anchored at 2%,” the statement said. “The committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.”

In a press conference following the release of the FOMC statement, Fed Chairman Jerome Powell said more stimulus is needed from Congress to help an economy struggling with the COVID-19 pandemic.

“My sense is that more fiscal support is likely to be needed,” Powell said. “Of course, the details of that are for Congress, not for the Fed. But I would just say there are roughly 11 million people still out of work due to the pandemic and good part of those people were working in industries that are likely to struggle. Those people may need additional support as they try to find their way through what will be a difficult time for them.”

Leave a comment

Most Popular Articles

Treasury removes restrictions on investment properties

The Treasury Department and FHFA announced Tuesday that they are suspending certain requirements that were added in January to the Preferred Stock Purchase Agreements (PSPAs) between Treasury and Fannie Mae and Freddie Mac.

Sep 14, 2021 By

Latest Articles

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

The United States is grappling with a sharp rise in natural disasters, including wildfires, an active hurricane season, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Sep 17, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please