The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

A real estate professor weighs in on the future of MLSs

According to research done by Sonia Gilbukh, a real estate professor at Baruch College, there are some reasons to be concerned about the current number of real estate agents and the future of MLSs.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Politics & Money

Powell: “Ground to cover” before tapering asset purchases

Short-term interest rates will remain near zero

The Federal Reserve today said that while the economy has “made progress” toward employment and price stability goals, it will not yet change its stance toward asset purchases, which has propped up the mortgage market.

Short-term interest rates will remain near zero, and the central bank said in a statement that it expects to keep that target until its labor market goals are met and inflation rises to 2% and is on track to moderately exceed 2% for some time.

In a Wednesday afternoon press conference, Federal Reserve Chairman Jerome Powell said there is still “ground to cover” in the labor market before the central bank tapers the $80 billion in bonds and $40 billion in mortgage backed securities purchases. It has been making the purchases since March of 2020.

Powell also said the central bank expects inflation, which has driven up lumber, used car and hotel prices, to be “transitory.” That means the Fed does not expect price increases to increase unabated on a permanent basis, Powell explained.

Freddie Mac attributed the persistently low mortgage rates in part to growing concerns over the Delta variant. The Centers for Disease Control has said the Delta variant is much more aggressive and transmissible than the initial strain of COVID-19, and is now 83% of COVID-19 cases.

Borrowers exiting forbearance may choose to sell their homes – What role do servicers play?

As forbearance ends, homeowners are having to make some tough decisions. If they sell their home to tap into equity, what role does the servicer play?

Presented by: Xome

Powell, however, said that while a surge in Covid cases will have “significant health consequences,” each successive wave has had a diminished economic impact.

“What we’ve seen is with successive waves of Covid over the past year, there is less in the way of economic implications with each wave,” Powell said. “We will see if that is the case with the Delta variety.”

Mike Fratantoni, chief economist at the Mortgage Bankers Association, said that Powell’s remarks hinted that there is “potential for announcing a tapering plan is in the cards over the next few meetings.”

Meanwhile, mortgage rates are still at historically low levels, which is driving refinance activity, Fratantoni said.

The trade association said that it expects a taper of asset purchases, and somewhat higher mortgage rates, in the second half of the year.

Leave a comment

Most Popular Articles

Lenders mandated to use FHA Catalyst for appraisals

Starting March 14, 2022, the Federal Housing Administration will require all lenders to use FHA Catalyst for appraisals.

Sep 21, 2021 By

Latest Articles

Existing home sales pop the 2021 housing bubble boys

So far this year, every existing home sales print has been higher in 2021 than the closing level of sales in 2020, which was 5,640,000. Even with the unhealthy home price gains that we have seen in the last two years, more Americans have bought homes with mortgages in 2020 and 2021 than any single year from 2008-2019, and this looks perfectly normal with our current demographics. HW+ Premium Content

Sep 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please