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Today’s News Synopsis:
Existing home sales increased by 2.4% last month to a 5.17 million annual rate, leading organizations like Capital Economics to be optimistic about the economy improving. The Mortgage Bankers Association is also optimistic mortgage originations will increase 7% in 2015. A new QRM rule is in the final states of being completed by financial regulators.
In The News:
Mortgage Bankers Association - “MBA Sees Originations Increasing Seven Percent in 2015″ (10-21-14)
“The Mortgage Bankers Association announced today that it expects to see $1.19 trillion in mortgage originations during 2015, a seven percent increase from 2014.”
Bloomberg - “U.S. Agencies to Require CLO Managers to Retain 5% of Deals” (10-21-14)
“U.S. regulators will make investment firms or banks that create securities backed by high-risk corporate loans retain a portion of their new deals.”
DS News – “Castro Outlines HUD’s ‘Blueprint for Access’” (10-21-14)
“U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro announced in a speech on Monday the points of HUD’s “Blueprint for Access” meant to ease the risk of lenders while expanding credit.”
OC Housing News – “Are the GSEs returning to subprime lending?” (10-21-14)
“Those of us who watched the housing bubble and bust and detailed it’s causes are greatly concerned about returning to the disastrous lending practices of the past. Although some degree of credit loosening was inevitable, the last thing any of us should want to see is a return to irresponsible subprime lending, particularly now that the US Taxpayer is liable for all the losses.”
Housing Wire – “Capital Economics: Recovery in home sales marches on” (10-21-14)
“The increase in existing home sales in September took sales activity to a 12-month high, and with falling mortgage interest rates and what some see as an improving labor market, Capital Economics is getting bullish on housing.”
Bloomberg - “FDIC Backs Rules Requiring Lenders to Keep Stakes in CLOs” (10-21-14)
“Lenders will have to keep stakes in mortgages and highly leveraged corporate bonds they package for sale to investors under measures approved by U.S. regulators to rein in risky credit practices.”
Housing Wire - “S&P/Experian: Mortgage default rates increase two months straight” (10-21-14)
“Consumer default rates recorded a slight uptick in September, rising for the second consecutive month, according to the most recent S&P/Experian Consumer Credit Default Indices.”
DS News – “Financial Regulators Finalize QRM Rule” (10-21-14)
“Federal regulators announced on Tuesday they have finalized a rule establishing a risk retention framework for mortgage lenders securitizing and selling loans.”
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The NAR reported existing-home sales decreased the previous month by 1.9% after reaching their highest level in August. It was reported that one in five loans did not meet the requirements set down by CFPB regarding qualified mortgages. The number of jumbo loans available in the Chicago area allowed more homeowners to move up in the market.
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