Nine senators said they would work to invalidate any new rules issued by the CFPB if Leandra English prevails in her attempts to unseat and replace the bureau’s acting director, Mick Mulvaney...
The Federal Housing Finance Agency raised the baseline conforming loan limit for GSE mortgages by $29,000 for next year. The new loan limit, announced Nov. 28, is $453,100, and represents just the second time since the 2007 housing downturn that the conforming loan limit has been raised. For 2017, it was increased by $7,100, to $424,100. The baseline loan limit was established by the Housing and Economic Recovery Act of 2008 and is closely reviewed each year to reflect any changes in the national home price index. In determining maximum loan amount under the terms of HERA, FHFA uses the expanded-data home price index. The expanded-data HPI increased 6.8 percent between the third quarters of 2016 and 2017.
In anticipation of a slight decline in multifamily mortgage originations, the Federal Housing Finance Agency last week lowered the multifamily lending caps for Fannie Mae and Freddie Mac in 2018. GSE multifamily business will be capped at $35.0 billion, down from the $36.5 billion level it’s been the past two years. FHFA analyzes the multifamily loan origination market size each quarter to decide if it will adjust the GSEs’ purchase limits. In the event the market picks up in 2018, the agency could raise the cap. And if the market slows even more than expected, it could lower the caps further.
Fannie Mae CEO Tim Mayopoulos said the housing crisis has made people cautious about buying a home and that confidence in the market needs to be restored. Speaking at the Detroit Economic Club last week, Mayopoulos emphasized the need for affordable housing, calling the issue “urgent.” More than one million starter homes have been lost since the crisis, according to Mayopoulos. He pointed out that from 2012 and 2015, the most affordable one-third of homes rose 38 percent in price, and the inventory dropped by 39 percent. In addition to the decline in the number of affordable homes, he said people aren’t as comfortable in making a home purchase as they were before the crisis.
Mick Mulvaney has been in charge of the CFPB all week and we’ve yet to hear one prediction that subprime mortgage lending will revive with a vengeance…
Mulvaney’s ascension has raised expectations the bureau will alter its legal positions in high-profile cases such as those involving Ocwen Financial and PHH…
Acting Ginnie Mae president Michael Bright said the task force is examining critical issues, important data and lender behaviors related to refinancing loans…
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