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Mortgage Industry Trends

Woo-Woo Consumers Are Upbeat on Housing!

Despite rising mortgage rates and increasing home prices, many consumers are feeling good about housing going into the spring buying season. As evidence, Fannie Mae’s monthly index of homebuyer sentiment rose to its highest level since 2011. That’s great news. Woo-Woo! According to Doug Duncan, Chief Economist at Fannie Mae, Millennials showed strong increases in job confidence and income growth.…

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Mortgage Industry Trends

A Look into a Non-Prime, Private Label MBS

The market has been mostly void of private label securities; securities that are not backed by Fannie, Freddie or Ginnie. There are some of these securities being created like the one recently done by Angel Oak of Atlanta. Angel Oak, having previously issued non-rated, mortgage-backed securities, is issuing its first rated transaction. A pool comprised of 529 non-QM loans valued…

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Mortgage Compliance

Should G-Fess Be Congress’ ATM?

House Rule 916, the Risk Management and Homeowner Stability Act, was recently introduced as bi-partisan legislation by Representatives Mark Sanford (R-SC) and Brad Sherman (D-CA). The bill is intended to restrict increases in agency Guaranty Fees to finance reforms to the secondary markets and prohibit use by Congress to fund other programs or cover budget shortfalls for such programs. “G-fees”,…

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Mortgage Industry Trends

Defects and Misrepresentations Rise With Rates

Fraud, misrepresentations, and loan defects are rising as refinances decline and purchase activity increases. According to The First American Financial Corporation, their Loan Application Defect Index rose 5.8% in January 2017, as compared to last year. This trend started in December of 2016. As the industry pushes to qualify more potential homebuyers in a rising rate environment, it experiences more problems…

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