Lending

Calabria: Fannie Mae and Freddie Mac won’t privatize until 2020’s end or later

FHFA director comments in Bloomberg TV interview
The federal regulator for Fannie Mae and Freddie Mac said the nation’s largest mortgage financiers won’t be privatized until the end of 2020 at the earliest. “It really depends on how quickly they raise capital,” said Federal Housing Finance Agency Director Mark Calabria in a Tuesday interview on Bloomberg TV.
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Life insurance companies to fuel multifamily surge in 2020

Could fund additional $10 billion in multifamily
Life insurance companies are set to create a surge in multifamily lending in 2020, according to a new study from the Mortgage Bankers Association. This should help propel multifamily originations, which are set to hit yet another all-time high in 2020, according to the MBA.
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Dispose distress early to minimize loss severity

Researchers finds loss severity on nonperforming loans is lower when properties are disposed of early
A new study of distressed property dispositions between 2003 and 2017 by Fannie Mae and academic researchers finds loss severity on nonperforming loans is lower when properties are disposed of early, before a lender takes ownership.
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Fintech company Plaid secures investments from Mastercard and Visa

Top credit card companies invest in fintech unicorn
Plaid, a technology platform that connects various applications with users’ bank accounts and has a growing presence in the mortgage space, raised $250 million last December in its Series C funding round that pegged the company with a reported valuation of $2.65 billion. But now, the company has two new and very notable investors: Mastercard and Visa.
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Average FICO score stands at record high

Time is erasing the scars of the Great Recession, FICO says
The average FICO score stands at a record high, said Ethan Dornhelm, vice president of scores and predictive analytics at FICO. One of the key drivers is the economic expansion, but the purging of Great Recession credit events is also helping, FICO said.
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Expert: The greatest hurdle for mortgage technology is culture

We are in the adapt or die moment
We are in the adapt or die moment for mortgage technology, and lenders must quickly move from doing digital to being digital, one expert explained. Leaders in the lending space need to understand that the greatest hurdle for technology in the housing industry isn’t technical. It’s cultural.
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It stinks to be Powell this week as Fed chairman grapples with Trump’s ire

Trump tweets Powell and other FOMC members “don’t have a clue”
Federal Reserve Chairman Jerome Powell will answer questions from reporters following the end of Wednesday’s policy-setting FOMC meeting that’s widely expected to produce a 0.25% rate cut. Watch out. The last time Powell held a press conference, after July’s FOMC meeting, he used two words that spooked investors and cratered the stock market. And, then there’s his boss, President Donald Trump, who is panning his job performance via Twitter.
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[Pulse] How real estate agents and mortgage lenders can use Instagram to boost their business

Why doing it for the 'Gram can be good for your bottom line
Instagram boasts a whopping 1 billion users, with 500 million of them logging into the platform every day. The hashtag #realestate has been used on 26 million posts, and that’s merely one of endless hashtag options. So what does this tell us? For real estate agents and mortgage lenders, Instagram has the potential to be an incredibly lucrative platform for building an engaged audience and attracting new customers.
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Trump’s housing-finance plan aims to curb GSE lending in areas with rent control

“This is the Trump administration against the blue states,” says Raymond James analyst
Buckle your seatbelts, California. You may be in for another showdown with the Trump administration. One of the proposals buried in Treasury’s housing-finance plan was: curbing Fannie Mae and Freddie Mac multifamily lending in areas that adopt rent control. “The lesson I've had through observing the Trump administration is: They tell you in advance what they are going to do and they more often than not follow through,” a Raymond James analyst said.
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