Some say there is no spark in today’s economy. Others claim we’ve hit a speed bump. Nonetheless, everyone will agree the housing market is light years ahead of where it stood a year ago. But has the recovery cooled?
Bank of America is in the crosshairs of an advocacy organization as it attempts to prove the bank is neglecting REO properties in minority neighborhoods. But the mortgage industry has a different take on the issue—namely that crime is making it difficult for institutions to maintain these homes.
Riding on the coattails of two very impressive third-quarter earnings reports from homebuilders, Lennar and KB Home, real estate-related stocks closed the day with positive movement on the HW 30 index.
U.S. District Judge Jesse Furman denied Wells Fargo’s motion to dismiss several statutory claims made against the bank by the federal government. The original case attempts to get the bank to pay for losses on FHA-insured loans that eventually turned sour.
In the days following the 2016 election, business leaders across many industries were hopeful that the new president would make good on his promise of widespread deregulation. Banks and other financial institutions were especially optimistic. Here at last was the relief they had been looking for. Or not.
Even Hollywood knows better than to produce a sequel when the original movie is truly, horrifically bad. That’s why, thankfully, we haven’t seen sequels to such all-time cinematic disasters as Howard the Duck, Gigli, The Last Airbender, Jack and Jill, Glitter, or Battlefield Earth. Which brings us, in an admittedly roundabout way, to the question of whether we’re about to see a sequel of sorts in the mortgage industry: The Return of the Subprime Loan.
With FHFA director Mel Watt’s term due to expire in January 2019, the question of whether to move ahead on some version of administrative reform may rest with his successor. In the meantime, policy makers would be well-served to work together to come to some agreement on options for administrative reform. At a minimum, agreeing on a common definition would be a good first step.