The Mortgage Blog
Everything you need to know about what is going on in the mortgage industry.
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RE in China, Inflation Slows, MBS Improve
China $60 Trillion Real Estate Engine Slows . In 1994 China underwent a major tax overhaul that caused the central government to take more money at the expense of local governments. In response local governments used their zoning power to sell 70-year leases for residential development, sparking a housing boom. In this story we read… Read more
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Dollarization? Home Values Record High, Sahm Rule Indicator
Argentina’s Inflation – think inflation has gotten out of control in the US? Argentina has experienced double digit inflation for most of the previous 20 years. This year it is close to 140%. Argentinian banks enforce a $200 withdrawal limit. The next presidential election happens in nearly a week and one candidate, a trained economist,… Read more
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NAR Case, Rates Improve, Employment and Manufacturing Slow
NAR and Real Estate franchises HomeServices of America and Keller Williams were found guilty by a federal jury in Kansas City of colluding to inflate Real Estate Commissions. After 2 weeks of testimony the Jury spent 2 hrs deliberating before laying down a guilty verdict which ordered defendants to pay $1,780,000,000 ($1.78B) in damages that… Read more
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Commercial Loan Diet, Inflation Settling, Loans Perform, Rents Moderate
Loan Diets and Drought – from the Fed’s recent Beige Book we learned that many banks are going on a “Loan Diet” meaning they are extending smaller credit lines and are being more selective about who they lend to. In the residential world guidelines and standards have not changed for conventional and government loans but… Read more
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FHA Updates ADU Guides, Home Values and Rents Back to Sustainable Gains, Shipping Moderates
FHA Guidelines – were updated this week to support the use of rental income generated from Accessory Dwelling Units (ADUs) on single-family homes. HUD’s stated goal is to increase the stock of affordable housing and to expand opportunities for wealth building. If a client is purchasing or refinancing a single family with a legal ADU… Read more
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Conventional 5% Down on 2-4 Units, Jobs Mixed, New Rents Moderate
Guideline Updates – some major conventional guideline updates dropped this week, including a significant overhaul on down payment requirements for 2-4 Unit Multifamily primary purchases and limited cash out refinances (or renovation loans!). Starting Nov. 17th folks will be able to purchase a 4plex as a primary residence with 5% down that can come entirely… Read more