Mortgage rates surged this week, marking their highest point in nearly two months and adding fresh pressure on an already fragile spring homebuying season. The spike, driven largely by rising bond yields and escalating market uncertainty, is threatening to sideline more prospective buyers just as the housing market was showing signs of modest recovery.
As the U.S. housing market slows under the weight of high interest rates and shrinking affordability, major banks are lobbying regulators for a revamp of mortgage rules they say are outdated and overly restrictive. Industry leaders argue that simplifying the current framework could ease lending bottlenecks and bring more borrowers back into the market—especially first-time buyers and lower-income households. The push comes as home sales continue to slump and mortgage originations sit well below historical norms.
A sharp uptick in mortgage delinquencies among first-time homebuyers is raising red flags for the housing industry, particularly for borrowers using government-backed loans. These trends suggest that some of the most financially vulnerable homeowners are increasingly struggling to stay current on their payments, amplifying concerns about affordability, inflation, and broader market risk.
The Trump administration’s revived plan to privatize Fannie Mae and Freddie Mac is stoking fresh debate in Washington and on Wall Street, with experts warning that such a move could push mortgage rates higher and pose new challenges for homebuyers across the country. At the heart of the discussion lies a pivotal question: Can the U.S. housing market handle a shift away from government-backed mortgage guarantees?
The U.S. homebuilding sector found a modest silver lining in former President Donald Trump’s latest wave of tariff announcements. While much of the construction industry braces for higher costs, one crucial material—Canadian lumber—was notably spared from additional duties. That exemption, however, isn’t enough to ease broader concerns across the housing market, where rising costs and slowing demand are already testing builders' limits.
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.