With a Federal Reserve rate cut all but certain in the coming days, financial professionals are advising Americans to brace for a new wave of economic ripple effects. While markets have priced in a quarter-point reduction, the move could still influence everything from mortgage rates to savings yields—and not always in obvious ways.
August saw a dramatic shift in mortgage market behavior as rate-and-term refinances surged and non-QM lending hit its highest level to date. While purchase activity continued to cool, a wave of homeowners rushed to take advantage of slightly improved rates, and lenders expanded their reach with creative non-agency loan offerings.
The administration may declare a national housing emergency as early as this fall, according to Treasury Secretary Scott Bessent. While no official framework has been released, potential executive actions under consideration include standardizing local building and zoning codes, lowering closing costs, and granting tariff waivers on construction materials.
The Mortgage Bankers Association (MBA) has formally raised concerns to the Federal Housing Administration (FHA) about how Buy Now, Pay Later (BNPL) debt should be treated in mortgage underwriting. In a letter submitted on August 25, the MBA highlighted risks that could undermine borrower affordability assessments and FHA’s financial safeguards.
Markets were taken by surprise after a highly controversial decision from the White House rattled investor sentiment and reignited concerns about the political independence of the Federal Reserve. The sudden announcement of a Federal Reserve governor’s removal—based on disputed allegations of past mortgage-related impropriety—has triggered legal challenges and intensified debate about executive authority over monetary policy institutions.
Federal inspectors are taking the United States Treasury Department to task for not doing enough to increase participation in the government’s Home Affordable Modification Program (HAMP) which helps keep homeowners out of foreclosure. Borrowers having trouble paying their monthly payment can apply for a HAMP for a loan modification that lowers their monthly payment. So far, 1.5 million homeowners have received HAMP modifications, about half as many as originally predicted by the Treasury. The department has repeatedly extended the program’s initial December 2013 deadline; HAMP iis now scheduled to expire in December 2016.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
On Friday, April 24, 2015 HUD announced some significant changes to its Distressed Asset Stabilization Program (DASP). These changes were made in an effort to better serve homeowners looking to avoid foreclosure, loan servicers will now be required to delay foreclosure for a year and to evaluate all borrowers for the Home Affordable Modification Program (HAMP) or a similar program.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
While driving to work virtually every day I hear numerous advertisements for borrowers to apply for or to apply for a mortgage modification. The general public and mortgage professionals are unaware of the rules in order to obtain a Home Affordable Modification Program mortgage loan.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.