MND NewsWire : MBA

Mortgage Applications Decline. Refinance Demand Drops 16.2%. Purchases Down 5.2%

Adam Quinones — Wed, 28 Oct 2009 11:26:00 GMT

In last week's release, which reported data for the week ending October 16, mortgage application activity fell 13.7% as mortgage rates rose from 5.02% to 5.07%. The Refinance Index, adjusted for the Columbus Day holiday, decreased 16.8% from the previous week while the seasonally adjusted Purchase Index moved lower as well, decreasing 7.6% from one week earlier. The refinance share of mortgage activity fell to 65.0% of total applications from 67.4% in the previous week. In today's release, which covers new loan applications for the week ending October 23, the MBA reported that demand for new mortgages dropped 12.3%, even as mortgage rates fell from 5.04% to 5.07%. ...(read more)

MBA Says One in Eight Mortgages Delinquent in Q4 2008

CEP News Feed — Thu, 05 Mar 2009 15:48:56 GMT

Mortgage delinquencies for U.S. homes in the fourth quarter of 2008 rose to a new record high, with one homeowner out of eight behind on one or more mortgage payments, according to a report from the Mortgage Bankers Association on Thursday. The result...(read more)

MBA Says Commercial Real Estate Market Coming Under Pressure

CEP News Feed — Thu, 08 Jan 2009 14:39:18 GMT

The U.S. economic slowdown and credit crunch are beginning to affect the commercial real estate market in the United States, according to a report from the Mortgage Bankers Association on Thursday. "Despite relatively modest new construction activity...(read more)

MBA Reports Commercial/Multifamily Mortgage Debt Drops in Q3

CEP News Feed — Thu, 18 Dec 2008 16:14:29 GMT

Mortgage debt in commercial/multifamily dwellings dropped 0.1% in the third quarter to 3.44 trillion, according to a Mortgage Bankers Association (MBA)examination of the Federal Reserve Board Flow of Funds data. Commercial/multifamily mortgage outstanding...(read more)

MBA Mortgage Applications Move Higher in Week Ending November 7

CEP News Feed — Thu, 13 Nov 2008 14:35:28 GMT

Weekly mortgage applications in the United States increased in the week ending Nov. 7, according to data released from the Mortgage Bankers' Association ( MBA ) on Thursday, which reported an 11.9% week-over-week gain in applications. In the previous...(read more)

MBA Mortgage Applications Move Down in Week Ending Sept. 26

CEP News Feed — Wed, 01 Oct 2008 12:45:42 GMT

Weekly mortgage applications in the United States decreased in the week ending Sept. 26, according to data released from the Mortgage Bankers Association (MBA) on Wednesday, which reported a 23.0% week-over-week decline in applications. In the previous...(read more)

Interest Group and State Regulators Express Opinions on Bailout

Jann Swanson — Wed, 24 Sep 2008 17:30:00 GMT

Housing and banking special interest groups as well as a group that represents state level banking regulators have weighed in with their opinions and concerns about the banking bailout proposal which is rolling out piecemeal from the Federal Reserve and the Department of the Treasury. Two of the groups are less than happy with portions of the proposed policies.

On the neutral to positive side of the comments, the National Association of Realtors® (NAR) said on Monday that it supported "the ongoing bipartisan efforts to address the current crisis in the financial and secondary markets."

NAR President Richard Gaylord said, "Many securities are being valued at pennies on the dollar due to the very high leverage ratio and illiquidity of certain mortgage-backed securities. Unrealistically low valuations are paralyzing the balance sheets of financial institutions and have hindered liquidity flow.

"Responsible government intervention will restore a functioning market benefiting homeowners, those who wish to buy a home, financial institutions, the economy and ultimately the taxpayers. We support efforts to stabilize financial markets to allow rational valuation of assets, expedite refinancing and relief efforts for homeowners, and other measures to reestablish a level of confidence in the housing credit markets. NAR will work diligently with Congress and the administration to achieve these goals as well as the broader goal of reforming the housing finance system."

The National Association of Homebuilders (NAHB) also expressed their support and offered help in crafting the final bailout package. Speaking for the NAHB, executive vice president and CEO Jerry Howard said that policymakers must realize the root causes of the current crisis - falling home prices, mounting foreclosures and a frozen credit market - must be addressed now and that any plan must get to the heart of the problem to successfully stabilize mortgage markets and home prices and restore confidence in global financial markets. Ensuring that credit-worthy home buyers, builders and other small businesses have access to credit is absolutely essential to putting this economy back on track.

Two other groups, however, expressed reservations about the current proposals and offered suggestions for Congress to consider in formulating the final bailout package.

The Mortgage Bankers Associations (MBA) Chief Operating Officer John A. Courson first applauded the expected effects of Treasury Secretary Paulson's actions. In a statement released last Friday Courson said; "The moves Secretary Paulson announced today to increase GSE and Treasury purchases of mortgage-backed securities should provide support for mortgage rates. The fear was that the illiquidity in the financial markets we have seen this week would have reversed the recent drops in mortgage rates.

"The broader steps outlined by Treasury are aimed at ending the further meltdown in the financial markets and are designed to minimize the resulting impact of the market turmoil on the broader economy. It is another step in the long-term process of restoring a balance between the supply and demand for housing in a number of markets and thus addressing the continuing problem of mortgage delinquencies and foreclosures.

A second statement by Courson was issued on Monday in reaction to early drafts of Secretary Paulson's plan to purchase distressed mortgage assets. Courson said that he recognized that the Treasury Departments proposal was in its formulation state and that there are regulatory issues to be addressed, "we are nonetheless disappointed," he said, "that some legislators have decided this is an opportunity to tack on their favorite pet items. The markets need this facility and they need it fast."

He specifically criticized the revival of the bankruptcy cram down controversy and, calling it "irrelevant to the current discussion," said it "runs counter to the bi-partisan efforts to restore liquidity to the global capital markets. Once the fund purchases the distressed mortgages, he said, it doesn't need a bankruptcy judge to rewrite the loan balance. It can write down the loan balance itself, without Congress giving bankruptcy judges that authority.

"This is a time that requires strong leadership. It is not the time to revisit ancillary proposals that have been debated and defeated, like bankruptcy cram down. We would encourage both parties and both chambers to set aside the issues that will only bog down the process and pass a clean bill that will stabilize the markets and help keep families in their homes without permanently damaging the real estate finance system."

On Monday the Conference of State Bank Supervisors (CSBS) sent a letter to House Financial Services Committee Chairman Barney Frank, Senate Banking Committee Chairman Christopher Dodd, and Ranking Members Rep. Spencer Bachus and Sen. Richard Shelby expressing concern that the Treasury Department's plan will have a negative effect on the safety and soundness and long-term competitive posture of community and regional banks.

The letter complained that investment banks and very large retail banks appear to benefit the most from the plan even though they "have far greater culpability in the mortgage mess." On the other hand, community and regional banks, which the conference said did not generally participate in high risk lending or the securitization of these loans, "have been greatly impacted by the resulting slow down in the economy, sustained significant losses relative to their holdings of Fannie Mae and Freddie Mac preferred stock, and now face the prospect of large bank competitors eliminating their bad assets and investment firms competing directly for funds with federally insured higher yielding money market accounts. In fact, if unaddressed, without offsetting provisions, the Treasury's intervention to address systemic failure will cause collateral damage that could devastate our community banking industry."

CSBS asked that Congress, in evaluating Treasury's plan consider five suggestions to preserve community and regional banks.

All changes should be temporary to allow Congress more time to address the issues directly.
Community and regional banks should also be provided with the opportunity to sell problem loans to the government. In many instances, the ability to move a few construction or commercial real estate loans will return community and regional banks to a more stable and profitable condition. There should be a set aside of part of the proposed $700 billion designated for purchasing the distressed assets of community and regional banks.
The inequity of "too big too fail" treatment and the need to protect the payment system should be addressed by providing the FDIC with more flexibility under prompt corrective action, suspending broker deposit rules, and providing full deposit insurance coverage for demand deposits (this will be especially important for small and medium sized businesses).
Money market mutual funds should be insured under an FDIC-like administrative process subject to the same limits and industry funding requirements as required of insured depositories.
It is not the time for regulatory reform. This deserves the "thoughtful deliberation" of Congress outside of a crisis environment.

MBA Mortgage Applications Move Down in Week Ending Sept. 19

CEP News Feed — Wed, 24 Sep 2008 13:45:41 GMT

Weekly mortgage applications in the United States decreased in the week ending Sept. 19, according to data released from the Mortgage Bankers' Association (MBA) on Wednesday, which reported a 10.6% week-over-week rise in applications. In the previous...(read more)

Mortgage Rates Decline Over Labor Day Week but Real News Should Come this Week

Jann Swanson — Wed, 10 Sep 2008 13:39:00 GMT

The average mortgage rates reported below result from surveys that concluded two or three days before the federal takeover tsunami hit the market. A decline in rates is one frequently stated hope from the conservatorship of the two GSEs and some sources already reported that rates on the 30-year fixed rate mortgage (FRM) almost immediately dropped - one report said from 6.55 percent to 6.2 percent.

In the case of the Mortgage Bankers Association there is always a significant time lag between the end of data collection for its Weekly Mortgage Applications report and the release of results and we delay our own weekly summary because that report also contains important information on mortgage activity and the distribution of applications among purchases and refinances. However, due to circumstances over the last four days, we will report on Freddie Mac's Primary Mortgage Market Survey for this week as soon as it is released on Thursday.

Freddie Mac reported that mortgage rates for the week ended September 4 were generally lower than the previous week.

The 30-year FRM averaged 6.35 percent with 0.7 points compared to 6.40 percent with 0.6 point a week earlier.

The 15-year FRM carried an average rate of 5.90 percent down from 5.93 the previous week. Fees and points were unchanged at 0.6 point.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) were at 5.97 percent with 0.6 point. During the week ended August 28 the hybrid rate was 6.03 percent, also with 0.6 point. The one-year ARM dropped from 5.33 percent to 5.15 percent with 0.7 point.

"Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow," said Frank Nothaft, Freddie Mac vice president and chief economist. "The economy grew at an upwardly revised 3.3 percent pace in the second quarter, boosted by the smallest trade deficit in eight years, and residential fixed investment slowed growth by 0.6 percent, the least amount since the same period a year ago.

"However, personal income fell 0.7 percent in July, the first decline since August 2005 and will likely slow consumer spending in the third quarter."

The MBA survey also revealed across-the-board rate declines. The 30-year FRM decreased from 6.39 percent to 6.06 percent with points, including the origination fee, increasing slightly to 1.02 from 1.00 while the other fixed rate mortgage, the 15-year, declined an average of 23 basis points to 5.73 percent with points decreasing to 0.98 from 1.03. The one-year ARM averaged 7.0 percent with 0.30 point, down from 7.11 percent with 0.35 point.

Mortgage volume as measured by the number of applications increased 9.5 percent on a seasonally adjusted basis which included an adjustment to account for the Labor Day-shortened week. On an unadjusted basis volume was down 13.6 percent. Applications dropped 24.4 percent compared with the same Labor Day week in 2007.

Refinancing as a share of all mortgage applications increased to 36.3 percent from 34.0 percent a week earlier while the market share of ARMs continued to decline, representing only 6.4 percent of all applications compared to 6.6 percent a week earlier.

MBA Mortgage Applications Move Down in Week Ending August 22

Glenn Setzer — Wed, 27 Aug 2008 11:00:00 GMT

Weekly mortgage applications in the United States increased in the week ending Aug. 22, according to data released from the Mortgage Bankers Association (MBA) on Wednesday, which reported a 0.5% week-over-week rise in applications.

In the previous week, applications also fell by 1.5%.

...(read more)

In Face of Conflicting Economic Reports, Interest Rates Stand Pat

Glenn Setzer — Wed, 20 Aug 2008 11:00:00 GMT

Mortgage interest rates for the week ended August 14 as reported from data collected by Freddie Mac from its Primary Mortgage Market Survey drifted in a very narrow range as they have done for most of 2008.

The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending August 15 on Wednesday...

...(read more)

MBA Mortgage Applications Decline in Week Ending Aug. 8

Glenn Setzer — Wed, 13 Aug 2008 11:00:00 GMT

Weekly mortgage applications in the United States fell in the week ending Aug. 8, according to data released from the Mortgage Bankers Association (MBA) on Wednesday, which reported a 1.5% week-over-week decline in applications.

...(read more)

MBA Mortgage Applications Move Higher in Week Ending August 1

Glenn Setzer — Wed, 06 Aug 2008 11:00:00 GMT

Weekly mortgage applications in the United States rebounded in the week ending Aug. 1, according to data released from the Mortgage Bankers Association (MBA) on Wednesday, which reported a 2.8% week-over-week rise in applications...

...(read more)

MBA Says Home Construction Loan Delinquency Rate Misleading

Glenn Setzer — Tue, 01 Jul 2008 11:00:00 GMT

Constructions loans for single and multi family projects in the United States are incorrectly included in commercial real estate delinquency reports, according to the Mortgage Bankers Association's most recent Commercial/Multifamily Research DataNote.

According to the report, combining commercial real estate loans with construction projects destined for family dwellings greatly inflates the delinquency rates reported for...

...(read more)

MBA Mortgage Applications Decline in Week Ending June 20

Glenn Setzer — Wed, 25 Jun 2008 11:00:00 GMT

Weekly mortgage applications in the United States fell further in the week ending June 20, according to data from the Mortgage Bankers' Association (MBA) on Wednesday, which reported that applications fell by 9.3% week-over-week.

In the previous week, applications fell by a revised 8.7%.

The average loan size was...

...(read more)