ABOUT TIME: Cost to originate mortgages finally gets cheaper

After barely surviving the subprime crisis and housing collapse, and then enduring the agony of burdensome regulatory changes and the advent of a new mortgage watchdog, mortgage originators finally, FINALLY, have some good news to spread.

Well, it only took about 8 years but...  the Mortgage Bankers Association just said that total loan production expenses – commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations – decreased to $6,984 per loan in the second quarter of 2015, from $7,195 in the first quarter of 2015.

This is after years of mortgage production cost slowing inching their way up into the stratosphere. Here's a laundry list of that sad, cruel progression.

What's more, independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of $1,522 on each loan they originated in the second quarter of 2015, up from a reported gain of $1,447 per loan in the first quarter of 2015,reported today in its Quarterly Mortgage Bankers Performance Report.

“Average company production volume was up in the second quarter, as purchase volume grew and mortgage pipelines from the first quarter’s refinance boomlet closed,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “The production volume increase resulted in a nominal decrease in per-loan production expenses, which offset a decrease in secondary marketing income.

“However, by historical standards, production expenses remained elevated given that the average company production volume was at the highest level since inception of the study in 2008,” she said.

Other key findings of MBA’s Quarterly Mortgage Bankers Performance Report include:

see more at: http://www.housingwire.com/articles/34862-about-time-cost-to-originate-mortgages-finally-gets-cheaper

Average rate on 30-year mortgages holding steady, Freddie Mac says

Washington — Average long-term U.S. mortgage rates edged lower this week, with the key 30-year loan rate remaining under 4%.

Mortgage investment firm Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage ticked down to 3.93% from 3.94% a week earlier. A year ago, the average rate was 4.10%.

The rate on 15-year fixed-rate mortgages eased this week to 3.15% from 3.17%.

Investors and financial experts are watching for an anticipated interest-rate increase by the Federal Reserve next month, which could bring higher rates for home loans. The Fed has kept its key short-term rate near zero since the financial crisis year 2008.

With mortgage rates at historically low levels and job growth steady, Americans stepped up their home-buying for a third straight month in July. Data issued Thursday by the National Association of Realtors showed home sales accelerating last month to the strongest pace in eight years.

The spike in home sales has come as more current homeowners have returned to the real estate market for an upgrade or to downsize as they approach retirement.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.

The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan also held steady at 0.6 point.

see more: http://www.jsonline.com/business/average-rate-on-30-year-mortgages-holding-steady-freddie-mac-says-b99560934z1-322408171.html

On the House: Presidential hopefuls and the mortgages they keep

You can't tell the 2016 presidential hopefuls without a scorecard, but thanks to the Loan Depot, we know something about their houses and how much their mortgages are.

I can't do them all in this space, so if anyone thinks I've slighted their favorite hopeful, email me and I'll send you the list.

Jeb and Columba Bush live in Coral Gables, in a 3,485-square-foot, four-bedroom, four-bath townhouse purchased in August 2011 for $1.3 million. Its assessed value in 2014 was $1.1 million. In July 2013, public records show, they refinanced their mortgage to a 30-year conventional loan for $754,000.

Hillary and Bill Clinton own a five-bedroom, four-bathroom 5,232 square-foot Colonial in Chappaqua, N.Y., purchased for $1.7 million in 1999, with an adjustable-rate mortgage of $1.41 million.


Read more at http://www.philly.com/philly/business/real_estate/residential/20150816_On_the_House__Presidential_hopefuls_and_the_mortgages_they_keep.html

After earning billions in profits, Fannie, Freddie reform further than ever

WASHINGTON (MarketWatch) — Despite years of hand wringing on Capitol Hill over the need to protect taxpayers by reforming the U.S. housing-finance market, it may take a financial hit to mortgage giants Fannie Mae and Freddie Mac to spur decisive congressional action.

It’s been almost seven years since the government sponsored enterprises were put into conservatorship, but U.S. lawmakers have yet to approve a plan that replaces the companies and rebuilds the country’s housing-market infrastructure. It’s a huge, complex undertaking, and no elected official wants to be the one who gets reform wrong.

“They are concerned with the unintended consequences,” said Isaac Boltansky, an analyst at Compass Point Research & Trading, a Washington-based investment firm. “None of these guys want their name attached to a bill that helped tank the mortgage markets.”

The stakes are high: Together Fannie FNMA, -1.65%  and Freddie FMCC, -1.72%   back a bit more than half of new mortgages. In the second quarter the companies backed a total of more than $230 billion in new mortgages, according to Inside Mortgage Finance, which closely monitors industry trends.

Any law that winds down the firms and reconstructs the mortgage marketplace will strike close to the heart of family finances across the country.

Fannie and Freddie’s role is crucial, enabling borrowers to get mortgages by providing financial liquidity. The government sponsored enterprises don’t make loans. Rather, they guarantee that investors in securities backed by mortgages will receive expected payments. Lenders who sell their loans into the Fannie and Freddie security packages then have money to lend again.

Fear of failure isn’t the only obstacle to reform. Some U.S. lawmakers may be loath to revamp a system that has helped the government to narrow its deficit. A bailout arrangement forces Fannie and Freddie to send their profits to the U.S. Treasury Department each quarter. The GSEs have sent more than $50 billion to the Treasury than the bailout funds they received.

Last week, Fannie Mae reported a $4.6 billion second-quarter profit, and Freddie Mac reported a $4.2 billion second-quarter profit.

With windfalls like these, some officials are more interested in maintaining than slaughtering their cash cows. Case in point: A recent bipartisan Senate proposal to fund infrastructure and transportation investment would be paid for, in part, by guarantee fees charged by Fannie and Freddie.

“It makes the government even more reliant on the GSEs as a source of funding for government programs,” analysts with Keefe, Bruyette & Woods, a New York-based investment bank, wrote in a research note.

read more: http://www.marketwatch.com/story/after-earning-billions-in-profits-fannie-freddie-reform-further-than-ever-2015-08-10

Inside View: Accenture Consulting

Energized by client need for digital and technology services, Accenture is scouting for talent. Business school has proven to be fertile hunting ground for the world’s fifth largest consulting firm by revenue. It was last year a top recruiter at INSEAD, Chicago Booth, Kellogg School, Duke Fuqua and LBS. With a surging global advisory sector poised to surpass $245 billion, Accenture has seen marked growth in digital areas such as big data analytics. Increasingly, business has called upon the firm to deliver long-term strategy projects at the intersection of business and technology. For a business whose livelihood is dependent upon offering best practice client-facing services, the need to hire the very best people is salient. There is great demand for talent at Accenture, and its links to the top MBA programs go a way to satisfying its staffing needs. Expansion of its standalone digital unit has been rapid. Founded in 2013, Accenture Digital had grown to have 28,000 employees at last year’s count. Accenture has 336,000 employees operating across 56 countries. The firm looks for individuals that have deep experience in change environments, and who are comfortable operating in and designing solutions for complex business problems. Increasingly, an understanding of data and analytics is required. In this interview with BusinessBecause Gregor McHardy, managing director and technology consulting lead for communications, media and technology at Accenture UK and Ireland, shines a light on the growing need for tech-savvy strategists. What demand are you seeing for strategy consulting, which is slated as experiencing resurgence? We see significant demand for strategy consulting, particularly as Accenture has positioned itself at the intersection of business and technology. For example: within the communications, media and technology industry there is a lot of market consolidation and convergence, which is creating demand for M&A and strategy consulting work. Also with digital disruption, our clients are reviewing their business models and assessing what they need to do to reinvent themselves, which also requires strategy consulting input and support. Our recent acquisition of Javelin Group is a key indicator of our growth aspirations in this space, and compliments an aggressive year of hiring for strategy skill sets. What expertise is needed for consultants to address complex long-term problems? We look for individuals that have deep experience in change environments and are comfortable operating in and designing solutions for complex business problems. Increasingly, an understanding of data and analytics is required. We see clients increasingly make more data-driven decisions and putting analytics at the heart of their businesses. So, our teams are increasingly bringing data and analytics skills into project analysis and execution. read more: http://www.businessbecause.com/news/inside-view-top-jobs/3408/inside-view-accenture-consulting-2015

Demand for mortgages picks up in second quarter: Fed survey

The trend for stronger demand for mortgage loans continued in the second quarter, a Federal Reserve senior loan officer survey released Monday showed, suggesting financial strains on households are easing. About 44% of banks reported moderately stronger demand for mortgages, compared with only 5% reporting weaker demand, according to the survey of 71 domestic and 23 branches of foreign banks operating in the U.S. The increase in mortgage demand was across the spectrum, including both jumbo and non-jumbo mortgages. Banks trimmed standards for mortgage lending, which makes it easier for borrowers to obtain a loan, but at a slower pace than in the first quarter, according to the survey. This report affirms Fed Chairwoman Janet Yellen’s recent testimony that U.S. households have to “wherewithal and confidence” to boost spending, said Millan Mulraine, economist at TD Securities. Banks also reported stronger demand for auto and credit card loans. A few large banks eased standards for credit cards, increased credit card limits and reduced minimum credit scores. “In general, this report reaffirms the supportive backdrop for the U.S. economy as the continued progress in credit dynamics will be seen as complementing the boost in income from the robust labor market and the support to wealth from rising asset prices,” Mulraine said. source: http://www.marketwatch.com/story/demand-for-mortgages-picks-up-in-second-quarter-fed-survey-2015-08-03