Browsing Posts In: lending

April 19, 2017 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

The Federal Housing Administration (FHA) plays a critical role in the housing market by guaranteeing financing to underserved portions of the population and by providing support to the broader housing market during cyclical downturns. In late 2016, a measure of delinquency hinted at budding stress for the FHA, but recent data suggests that conditions have […]

... Read More

May 3, 2016 Posted by: George Ratiu, Director, Quantitative and Commercial Research

CRE sales volume continued its positive trend in 2015, with $534 billion in closed transactions, compared with $432 billion in 2014, based on data from Real Capital Analytics (RCA).  In contrast to the large commercial transactions reported by RCA, commercial REALTORS® managed transactions averaging $1.8 million per deal, frequently located in secondary and tertiary markets, […]

... Read More

March 20, 2015 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

It has become rarer for banks and lenders to hold the loans they originate.  One factor linked to tight credit is the process where loan investors force lenders to buy back mortgages they sold to the investor.  In this case, the investors are the FHA and GSEs.  These buyback requests occur when the FHA, Fannie […]

... Read More

March 4, 2015 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

In recent months, two changes were made to government financing that were intended to improve credit availability.  Mortgage lenders who took part in the 4th quarter Survey of Mortgage Originators agreed that both programs, the new 3% down payment loan at Fannie Mae and Freddie Mac as well as the reduction of fees at the […]

... Read More

December 5, 2014 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

In the 3rd quarter as in earlier surveys, respondents to NAR’s Survey of Mortgage Originators were asked about impacts of the Qualified Mortgage rule on the mortgage lending market.  However, this quarter the survey expanded to measure lender expectations of market conditions and capacity as well as current policy issues including changes at the Rural […]

... Read More

October 9, 2014 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

Mortgages rates on conventional loans could change in the coming months. The Federal agency that regulates the GSEs, the FHFA, is re-evaluating the fees that it allows Fannie Mae and Freddie Mac to charge consumers. With mortgage rates expected to rise in the coming years and looming changes at private mortgage insurers, the outcome of […]

... Read More

October 7, 2014 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

In response to tight mortgage credit, the FHA has announced three changes that it hopes will help to ameliorate lender overlays and broaden access to credit. Specifically, the FHA will consolidate all of its current lending rules into one document that clearly outlines lenders’ responsibilities and penalties for not complying, it plans to increase early […]

... Read More

October 1, 2014 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

Mortgage lending standards have been tight in the wake of the Great Recession. But recent survey work of mortgage originators points to softening in the 2nd half ot 2014. In NAR’s 3rd Survey of Mortgage Originators, nearly half of respondents expected improved access to credit for prime borrowers with FICO scores between 620 and 720 […]

... Read More

September 29, 2014 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

The Dodd-Frank act requires that originators make a good faith effort to verify a borrower’s ability to repay their mortgage and imposes stiff penalties if they do not (ATR and QM rules). This makes sense for the safety of the borrower and the market. Some originators have expressed concern, though, pointing to a need for […]

... Read More

September 18, 2014 Posted by: Ken Fears, Director, Regional Economics and Housing Finance

Six months after the implementation of the QM/ATR rule, the market appears to be shifting modestly.  In the 3rd Survey of Mortgage Originators, which covers lending in the 2nd quarter of 2014, participants were asked about their willingness to delve into the non-QM market as well as other current issues including the FHA’s HAWK program, […]

... Read More