MBA’s 2016 Residential Issue Priorities


Last week, MBA released its 2016 Residential Issue Priorities, an outline of MBA’s policy proposals to preserve and enhance the ability of American families to obtain affordable mortgage financing. In close collaboration with our members, MBA continues to lead the way—through advocacy, communications, research and education—speaking with one voice for the mortgage industry to advocate for effective housing policy.

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More from CREF 2016: The Importance of Staying Engaged

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In my last blog post, I reflected on the strength of commercial real estate in the U.S. in recent years and the challenges that come with that success. Overcoming challenges is nothing new for our industry, but for us to continue to thrive in this changing global economy, it is more important than ever for our industry to speak with one voice.

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Highlights from CREF 2016

commcercial buildings

This week in Orlando MBA held its CREF/Multifamily Housing Convention & Expo. It was wonderful to see and visit with so many of our commercial and multifamily finance MBA members.

As I have said for some time, commercial and multifamily businesses thrived through the recession and continue to do well. Rents are up.  Vacancy rates are down.  Prices are up.  Cap rates are down. Lending volumes are up.  Delinquency rates are down.  And, for the coming year, the outlook remains solid.  Through MBA’s CREF Outlook Survey, leading originators told us they expect commercial and multifamily mortgage lending to continue to increase in 2016.  Continue reading “Highlights from CREF 2016”

TRID Implementation Concerns Remain

As I speak daily to different MBA members, one constant topic of late among our residential members has been the recent implementation of Know Before You Owe (TRID) rule.

In the run up to TRID this past October, many predicted pandemonium for homebuyers. And although concerns that consumers might face difficulties or delays in securing mortgages have not yet played out, that was thanks only to the monumental efforts of lenders and their staff. However, while lenders continue to adjust to the new rule, more clarity is needed from the CFPB.

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Reform Before Recapitalization

In response to last week’s New York Times article on the GSEs, a number of housing finance experts have come forward to point out the many problems with the Times’ false narrative.

The Times column and other similar pieces contain a number of inaccuracies, regarding both the history and the future of the GSEs.  We speculate this narrative is being driven by those who stand to gain windfall profits from recapitalizing and releasing Fannie and Freddie from conservatorship.

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Foreclosure Starts at Lowest Rate Since 2005

This week, MBA released our quarterly National Delinquency Survey (NDS). The results show that only 0.38 percent of outstanding mortgage loans entered foreclosure during the third quarter this year, the lowest level in more than ten years. In addition, looking at the data since the start of the survey in 1979, foreclosure starts are solidly below the historical average of 0.45 percent, and only slightly above the historical median of 0.35 percent. These numbers are further proof that the real estate finance industry is meeting consumer demand for mortgages more responsibly than ever. In fact, nationwide “legacy loans,” those originated prior to 2009, accounted for 80 percent of the loans that of “seriously delinquent” loans, or those that are over 90 days behind on payments or in the foreclosure process. And even for legacy loans, the overall rate of serious delinquencies decreased.

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GSE Financials Show Why We Need Reform


This week, Freddie Mac announced a quarterly loss of $475 million and Fannie Mae reported a profit of $2 billion. Both companies’ reports fell well short of last year’s numbers, giving opportunity for some to make statements about the risk these two companies create for taxpayers while others asked publicly if the time to recapitalize and release the GSEs from conservatorship has finally arrived. In my view we need to both recognize the risk of remaining in the current state with no capital and an uncertain future but recognize that the call for recapitalization and release is neither politically feasible nor financially-wise.

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