Saturday , 26 December 2015
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Are 39 Percent of Appraisals Wrong?

A study by a company that analyzes appraisals to reduce lender risk found that 39 percent of more than 300,000 appraisals contained property quality or condition ratings that conflicted with previous ratings of the same property. Conflicting property condition and quality ratings cause delays that generally range from one day to several days—a costly and risky setback for lenders concerned ... Read More »

Fannie Mae Rethinks Risk

  These times of limited affordability and changing views on credit are making it tough on lenders and even tougher on the GSEs who are the primary market for the mortgages they originate.  In an effort to reduce its risk burden by transferring more to investors in mortgage-backed securities, Fannie Mae has sharpened its pencil and put in place a ... Read More »

HMDA: Approval Rates Vary by Income and Race

The total number of originated mortgages of all types and purposes declined by about 2.7 million, or 31 percent, but in 2014 but home purchase lending increased by about 4 percent. Refinance originations declined by 55 percent, according to the latest Home Mortgage Disclosure Act (HMDA) Data released by the Federal Financial Institutions Examination Council. The 2014 data include information ... Read More »

New GSE Low Down Programs Lower Average Down Payments

  New 3 percent down programs from Fannie Mae and Freddie Mac helped to lower average down payment to 14.8 percent of the purchase price in the first quarter, down from 15.2 percent in the previous quarter and down from 15.5 percent a year ago to the lowest level since Q1 2012.  However, low down payment loans by conventional lenders ... Read More »

Freddie Forecasts Higher Prices, Volatile Rates

  Freddie Mac’s economists expect the balance of the year to be a hectic one as housing markets are likely to see increasing interest rate volatility for the remainder of the year and consumers try to anticipate the Federal Reserve’s timing around rising short term interest rates.  Home buyers may encounter “bouts of affordability shock” if rates rise suddenly. With ... Read More »

Freddie Mac: Best Sales Season Since the Boom

Freddie Mac’s economists look for home sales this year to be the best since 2007 with mortgage rates low, purchase applications up and pending home sales on a positive upward trend, even though first quarter results were less than sterling. As a result, the GSE lowered its forecast for economic growth for 2015 from 2.8 to 2.6 percent and the ... Read More »

Real Estate Markets Tiptoe Toward Stability

  Freddie Mac’s proprietary MiMi index, which uses data on mortgage repayments and local economic conditions to track markets against their ‘long-term stable range”, reports that national MiMi value stands at 74.9, indicating a weak housing market overall but showing a slight improvement (+0.37%) from November to December and a positive 3-month trend of (+1.09%). On a year-over-year basis, the ... Read More »

Are You Ready for the Next Boom?

According to a new study from the New York Federal Reserve the best way to stimulate demand is to reduce down payments, a strategy that’s more effective than lowering interest rates-whicb is probably obvious to most street Realtors.  Now it can be proved scientifically. The Fed economists queried prospective buyers to determine their willingness to buy a home under different ... Read More »

Fannie Mae’s 3 Percent Solution

By Steve Cook   Aint this a great nation? Not so long ago federal housing policies were judged by their ability to require lenders to put “skin in the game”—to require make a large enough down payment to discourage defaults. Now, the FHFA has decided Fannie Mae will accept a 3 percent down payment for highly qualified borrowers to help ... Read More »

Fannie Sees Sunshine

Fannie Mae’s monthly consumer survey found that most consumers surveyed believe prices will rise by 2.2 percent over the next year even though they are falling now and fewer than half think mortgage rates will go up in the next 12 months even though rates today are near historic lows. Moreover, in September, the share of consumers who say now ... Read More »

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