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The Mortgage Bankers Association (MBA), American Bankers Association (ABA), and the American Financial Services Association (AFSA) joined with 11 state and local mortgage lending groups on Friday to send a letter to the U.S. Department of Housing and Urban Development expressing concerns about the way in which HUD is proposing to implement the 2008 SAFE Act. The SAFE Act (Secure and Fair Enforcement for Mortgage Licensing), was passed in July 2008 as part of the Housing and Economic Recovery Act. It directs states to adopt licensing and registration requirements for loan originators that meet minimum standards established by the act in lieu of HUD establishing nationwide standards. It also encourages the Conference of State Bank Supervisors (CSBS) and the American Association of Residential…(read more)

Full article: MBA: Servicing Specialists Should Not be Required to Obtain SAFE Act Licensing ...

Mortgage rates reversed course yet again during the week ended March 4 with the 30-year fixed-rate mortgage (FRM) once more falling below 5 percent. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year FRM averaged 4.97 percent with an average of 0.7 point compared to an average rate of 5.05 percent with 0.7 point the previous week. The 15-year FRM averaged 4.33 percent, down from 4.40 percent the week before. Fees and points remain unchanged at 0.7 point. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) had an average rate of 4.11 percent, down from 4.16 percent during the week ended February 25. Fees and points also declined from 0.6 point to 0.5 point. The one-year Treasury-indexed ARM was the lone exception to the downward trend. The average rate for…(read more)

Full article: GSEs: Long Term Rates Again Below 5 Percent ...

Equity futures are moderately higher ahead of a fairly light week of economic data. Dow futures are trading 18 points higher at 10,563 and S&P 500 futures are up a 2 points to 1,138. Commodities are also edging slightly higher with WTI crude oil up 33 cents to $81.83 per barrel and Spot Gold up 54 cents to $1,135.19. Meantime, the US dollar is a bit lower against the euro since France’s Nicolas Sarkozy said the continent would help Greece: “if it were necessary, the states of the euro zone would fulfill their commitments.” In terms of data the week ahead doesn’t quite begin until Wednesday afternoon when the Treasury releases its budget statement. On Thursday, weekly jobless claims will be accompanied by the monthly trade balance. Friday’s retail sales index…(read more)

Full article: The Week Ahead: Treasury Auctions Highlight Slow Econ Calendar Until Friday ...

Via email, I recieved the following guidance from the FHA this morning: Subject: Guidance for Currently FHA-Approved Loan Correspondents Regarding Renewal of FHA Lender Approval for 2010 As proposed in a November 30, 2009 via 74 FR 62521 , HUD is seeking to eliminate FHA approval for loan correspondents. Because this rulemaking is still in process and a final rule has not yet been issued, FHA is extending the deadline for the submission of audited financial statements for loan correspondents seeking renewal of their FHA lender approval for 2010. For loan correspondents with a fiscal year end of December 31, and that would ordinarily be required to renew their FHA approval by March 31, 2010, HUD is providing these lenders with an additional 30 days in which to submit their audited financial…(read more)

Full article: FHA Extends Deadline to Submit Audited Financials. Elimination of Correspondent/Broker Approval Still Pending ...

Equity futures are firmly higher this morning ahead of February employment numbers. Payrolls are expected to continue declining but investors are reacting positively to news that the Bank of Japan could initiate measures to protect the economy from deflation. Overseas markets have been positive across the board, including a 2.20% gain in Japan, a 1.03% gain in Hong Kong, and gains of around 1% in Europe. “The Nikkei posted its strongest week of the year as the yen weakened amid speculation that the BoJ will undertake further easing,” noted analysts from BMO. “Meantime, a successful 10-year bond sale by Greece (which raised €5 bln), and stronger-than-expected factory data, are giving Europe a lift, though the euro is little changed.” Two hours before the opening…(read more)

Full article: The Day Ahead: Employment Situation Report and Consumer Credit ...

The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the week ending March 3, 2010, the Federal Reserve purchased a net total of $10.00 billion agency MBS. This represents a $1 billion decline from the previous reporting period and breaks a three week streak of $11 billion net total purchases. The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers. ( N.Y. Fed MBS FAQs ) Since the inception…(read more)

Full article: Fed MBS Program Update: $34 Billion Left to Spend With Four Weeks to Go ...

The NAR released Pending Home Sales data this morning. From the release: The Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, fell 7.6 percent to 90.4 from an upwardly revised 97.8 in December , but remains 12.3 percent higher than January 2009 when it was 80.5. A sale is listed as "pending" when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing . Mortgage and real estate professionals know that a signed contract is just the first step in a long process nowadays. The hard part is qualifying and closing! Since activity spiked over the seasonally supportive spring and summer months, before topping out in October, there has been a drastic drop off in sales…(read more)

Full article: Pending Home Sales Fall Back to Pre-Stimulus Levels. Weather Blamed But Structural Weakness Remains ...

The futures market is pretty quiet this morning as investors await the jobless claims report today and the month’s unemployment report tomorrow. Also on deck today are revisions to the fourth quarter’s productivity and costs report, and the first look of the year at pending home sales. In Europe, Greece hit the market a well-bid sale of 10-year bonds. “The bonds are being offered with a premium yield of a little under 6.5%, while the 10-yr is trading closer to 6% currently,” analysts from BMO said. “The ability to sell debt and accept that a premium must be paid are steps forward for Greece. A large amount of debt will still need to be issued over the next three months, but progress is a positive for Europe and global markets.” Ninety minutes before the opening…(read more)

Full article: The Day Ahead: Markets Await Jobless Claims and Home Sales ...

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 26, 2010. The survey covers over 50 percent of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. A rising trend of mortgage applications indicates an increase in home buying interest, a positive for the housing industry and economy as a whole. Furthermore, in a low mortgage rate environment, such a trend implies consumers are seeking out lower monthly payments which can result in increased disposable income and therefore more money to spend on discretionary items or to pay down other debt. From the release : The Market Composite Index, a measure…(read more)

Full article: Refinance Loan Demand Responds to Dip in Rates. Purchases Putt Along Near Bottom ...

Delinquencies among loans guaranteed by Freddie Mac continued to rise in January according to the Monthly Volume Summary issued last week. At the same time, the Enterprise's investment portfolio continued to contract. Loans over 90 days delinquent increased to 4.03 percent of all loans during January compared to 3.87 percent in December. The delinquency rate in January 2009 was 1.98 percent. The non-credit enhanced portion of the portfolio had a January delinquency rate of 3.13 percent compared to 3.0 percent in December while the credit-enhanced portion had a rate of 8.52 percent compared to 8.17 percent. The percentage of delinquencies in the multi-family portfolio was unchanged at 0.15 percent. Loans more than 120 days delinquent represented 2.59 percent of Freddie Mac's total fixed…(read more)

Full article: Freddie Mac Delinquences Continue to Climb. Retained Portfolio Contracts ...

It’s a busy day ahead as investors will eye key data on the manufacturing industry and receive one of the top forecasting tools for the monthly employment release. Until the data hits the market, focus is on Europe as the Greek government recently new austerity measures so it can meet its deficit-cutting pledge. News reports say the plan will raise taxes and slash spending. In the US, about 90 minutes before the bell sounds, Dow futures are off 7 points to 10,392 while S&P 500 futures are about flat at 1,171.10. Meantime, commodities are on the rise. WTI crude oil is up 39 cents to $80.07 per barrel and Spot Gold is up $3.95 per ounce to $1,138.65. Key Events Today: 8:30 ― The ADP Employment Survey saw the economy shed 22K private jobs in January ― the twenty-fourth consecutive month…(read more)

Full article: The Day Ahead: Greek Austerity Plan, ISM Manufacturing, ADP Jobs, Fed Speak ...

Relative to how busy this week is, Tuesday’s economic calendar is pretty slow. Aside from the weekly retail sales surveys, no major economic data will be released, but the afternoon features two speeches from the Federal Reserve. 90 minutes before the opening bell, equity markets are clearly looking for a positive open. The Dow looks to open 53 points higher at 10,438 and futures on the S&P 500 are up 6.30 points to 1,120.90. NYMEX crude oil futures contracts are up 63 cents to $79.33 and Gold is up $5.20 to $1,123.50. Key Events Today: 1:00 ― Eric Rosengren , president of the Boston Fed, speaks at a conference on post-crisis capital markets in Philadelphia. 2:00 ― Naranyana Kocherlakota (non-voter) , president of the Minneapolis Fed, speaks to the Allied Executives Business &…(read more)

Full article: The Day Ahead: Equities Climbing Ahead of Soft Schedule ...

Homeowners who hope to refinance existing mortgages that are "underwater" just got a reprieve that will allow them another year to do so. The Federal Home Financing Agency announced Monday that its Home Affordable Refinance Program (HARP), which was originally set to expire on June 30, 2010, will be extended to June 30, 2011. HARP, part of the Making Home Affordable Program, is designed to expand access to refinancing for otherwise qualified borrowers who cannot move into more affordable mortgages because of a lack of equity in their homes. Unlike other homeownership assistance programs, HARP guidelines are designed for borrowers who are current on their mortgages. The program was originally designed to help homeowners with a loan-to-value (LTV) ratio up to 105 percent including those…(read more)

Full article: FHFA Extends High LTV Refinance Program into 2011 ...

From HUD : The U.S. Department of Housing and Urban Development, in partnership with the Loan Modification Scam Prevention Network, today announced the launch of PreventLoanScams.org “Homeowners at risk of foreclosure can be easy prey for home loan modification scammers. Often, dishonest individuals lure vulnerable homeowners into foreclosure rescue scams by making false promises. Scammers frequently claim they can lower mortgage payments or stop the foreclosure process. ” “Troubled homeowners lose time and money when they are tricked by con artists who promise to help but never do,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “This initiative combines the collective energies of public and private enterprises to strengthen…(read more)

Full article: HUD Launches Online Resource to Fight Loan Mod Scams ...

The Commerce Department today released January New Construction Spending data. Previous Release: December New Construction Spending Total New Construction Spending fell 1.2 percent to $889.6 billion in December. This was worse than estimates which called for a 0.5 percent fall. Private spending fell 1.7 percent led by a 2.8 percent decline in residential building and a 5.6 percent decline in lodging. Current Release: January New Construction Spending Consensus Forecast: -0.7 percent Actual Result: -0.6 percent to $884.1 billion. Total Construction spending during January 2010 was estimated at a seasonally adjusted annual rate of $884.1 billion, 0.6 percent below the revised December estimate of $889.6 billion. The January figure is 9.3 percent below the January 2009 estimate of $974.3 billion…(read more)

Full article: Residential Construction Spending Improves in January. Existing Inventory Still a Drag on New Investment ...