What made the biggest impact on the MSR asset in September?
On Oct. 5, MountainView Financial Solutions, a Situs company, will broadcast its next MSR Asset Monthly Snapshot webinar. Over a fast-paced 30 minutes, the webinar’s presenters will provide data points and commentary that MSR market participants can use in their September month-end reporting and their strategic decisions.
The webinar’s four main topic areas will be the interest rate environment, MSR risk management, MSR pricing levels and MSR market activity. In each of the areas, MountainView will provide analysis of the company’s proprietary data and share what the company’s analysts and transaction advisors discussed most often with clients during September.
In the risk management portion of the webinar, Michael Riley, a managing director and head of MSR risk analytics at MountainView, will review the overall sources of changes in value. Mark Garland, a managing director and head of MSR valuation, will dig deep into specific components of value, and Matt Maurer, a managing director on MountainView’s transaction advisory team, will describe the characteristics and trends observed in deals brought to market in September.
MountainView has been conducting the monthly webinars since August 2016. The webinar attendees include representatives of mortgage banks, mortgage servicers, banks, credit unions, REITs and private-equity firms.
Registration is now open, and all registrants will receive the presentation and recording even if they can’t attend the webinar.
Freddie Mac begins search for Layton’s successor
Last week, Freddie Mac announced that its CEO Donald H. Layton has informed the Board of Directors of his intention to retire in the second half of 2019. The board has begun its CEO succession plan in response, which should be completed within this period.
“Don has played an indispensable role in transforming Freddie Mac and moving the housing finance system in a better direction, particularly with his leadership in developing the GSE credit risk transfer market,” said Christopher S. Lynch, Chairman of Freddie Mac’s Board of Directors. “The Board is extraordinarily grateful for his service to the company, and we anticipate that he will continue to play an invaluable role at Freddie Mac during his remaining tenure.”
While Freddie Mac will be considering candidates from both inside and outside the company, the GSE has said that it is considering David Brickman, EVP and Head of Freddie Mac Multifamily, for the role. The Board has already appointed Brickman to the role of President of Freddie Mac. He will be joined by current SVP of Multifamily Underwriting and Credit Deborah Jenkins, who will be promoted to EVP of Multifamily on January 1, 2019.
To seek an outside candidate, the board has formed a committee and will retain an executive search firm.
Read more: DS News
Redfin report: More than one in four home sellers dropped their price last month
Signs continue to point toward a changing market that’s letting homebuyers be more selective as supply constraints begin to ease in the hottest markets, according to Redfin, the next-generation real estate brokerage. As a result, sellers are feeling compelled to adjust their expectations — and their prices. In the four weeks ending on September 16, 26.6 percent of homes listed for sale had a price drop, the highest level on record since Redfin began tracking this metric in 2010. We define a price drop as a listing price reduction of more than 1 percent and less than 50 percent.
“After years of strong price growth and intense competition for homes, buyers are taking advantage of the market’s easing pressure by being selective about which homes to offer on and how high to bid,” said Taylor Marr, Redfin senior economist. “But there are some early signs of a softening market, and the increase in price drops may be another indicator that sellers are going to have trouble getting the prices, and the bidding wars, that they may have just months ago. Instead, many are finding their homes are sitting on the market without much interest until they start reducing their prices.”
Read more: Business Insider
Average mortgage rates surge again, hit highest point since 2010
Mortgage rates increased 5 basis points last week, up for the fourth week in a row with momentum building for further hikes, according to Freddie Mac.
The 30-year fixed-rate mortgage averaged 4.65% for the week ending Sept. 20, up from last week when it averaged 4.6%. In the past two weeks, this rate has increased 11 basis points and is at its highest level since June 2010. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.83%.
“Mortgage rates are drifting upward again and represent continued affordability challenges for prospective buyers – especially first-time buyers,” Sam Khater, Freddie Mac’s chief economist, said in a press release. “Borrowing costs are moving right now for three main reasons: the very strong economy, higher US government debt issuances and global trade tensions.”
Read more: National Mortgage News
CUNA backs Senate GUIDE Compliance Act for guidance clarity
The Credit Union National Association (CUNA) wrote in support of a Senate bill designed to standardize regulatory guidance last week, thanking Sen. Orrin Hatch (R-UT) for introducing the Give Useful Information to Define Effective (GUIDE) Compliance Act. A House version of the bill has been introduced by Reps. Sean Duffy (R-WI) and Ed Perlmutter (D-CO), and it passed the House Financial Services Committee last week.
“Credit unions across the country continue to be frustrated with the sluggish issuance of guidance from the Bureau of Consumer Financial Protection (BCFP) which has created uncertainty and ambiguity not only for credit unions, but all industry stakeholders,” the letter reads. “The GUIDE Compliance Act would alleviate this uncertainty by requiring the BCFP to standardize the process of providing guidance that can be relied upon by industry.”
Read more: Credit Union National Association
Existing-home sales hold steady as housing market begins to find some balance
Existing-home sales ran at a seasonally adjusted annual 5.34 million rate in August, unchanged compared to July, the National Association of Realtors (NAR) said last Thursday.
After falling for four straight months, sales of previously owned homes stabilized in August. Existing-home sales were 1.5% lower than a year ago. And although sales seem to have stagnated in 2018, in the year to date, they’re only 1.2% lower than the same period a year ago, the Realtors said.
The flat reading missed the MarketWatch consensus forecast of a 5.37 million rate.
Sales surged 7.6% in the Northeast, the smallest region surveyed, but decreased 0.4% in the South. In the Midwest, they rose 2.4%, while in the West, the priciest area, they slumped 5.9%.
The housing market seems to be wobbling toward some equilibrium. “Prices are still rising, rising, rising,” said NAR Chief Economist Lawrence Yun, but at a slightly slower pace, he stressed.
Read more: MarketWatch
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