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As discussions around GSE reform and possible reductions in mortgage insurance premium at the Federal Housing Administration start to reach a boiling point, Patrick Sinks president and CEO of private mortgage insurer MGIC, posted a blog on the company’s website to get one important factor straight in the discussion. …read more

From:: Real Estate Wire

A Nevada woman who was once part of the largest mortgage fraud schemes in the history of the state will no longer forfeit $107 million after a federal court of appeals overturned part of her penalty because it violated the Eighth Amendment, which prohibits the government from imposing “excessive fines” and “cruel and unusual punishments.” …read more

From:: Real Estate Wire

By Susanne Dwyer

San Antonio, Texas is the sweet spot for homeownership, according to Zillow’s latest analysis. San Antonio is a market with strong income growth, a growing job market, and a place where you can break even on a home purchase in just over a year.

The Zillow® Breakeven Horizon, released quarterly, looks at how long home buyers need to stay in a home before buying it makes more financial sense than renting it. The national Breakeven Horizon is less than two years, and owning is more affordable than renting in 34 of the 35 largest metros. But it’s still difficult to afford a down payment, especially as rents continue to rise across the country. Zillow combined the Breakeven Horizon with job market and income information to find places where homeownership is not just financially advantageous but also more likely to be financially possible.

In San Antonio, homeowners can expect to break even on a home purchase in one year and four months. Incomes have appreciated an average of 4 percent over the past year and employment growth has hit almost 3 percent, both more than the national average, making San Antonio a sweet spot for homeownership.

Long Breakeven Horizons are pushing Silicon Valley hot-spots down the list, despite relatively strong labor markets. In San Jose, homeowners need to stay in their home for more than three years to make buying it more financially advantageous than renting it. San Jose would move up 20 spots on the list if the Breakeven Horizon were the same as Seattle, at under two years.

“All places on this list are great for those looking to buy a home and settle down,” says Zillow Chief Economist Dr.Svenja Gudell. “Not only do they have a strong labor market, but a home purchase in these markets makes a lot of financial sense. Be careful, though, because this assumes you can qualify for a mortgage, have a down-payment saved up and, most importantly, can find a home for sale in your price range. Simply put, buying a home in many of these markets is not for the faint of heart.”

The labor market is looking especially strong in Raleigh and Columbus — employment is up about 4 percent inRaleigh. In Columbus, incomes are appreciating just over 6 percent, more than double that of the nation, where incomes have appreciated about 2 percent over the past year.

For more information and full details on the report, visit the Breakeven Report on Zillow.

…read more

From:: Finance and Economy

By Susanne Dwyer

Lender attitudes toward the housing market are positive overall heading into Q3, having recovered from a significant decline in recent quarters, according to Fannie Mae’s second quarter 2016 Mortgage Lender Sentiment Survey®.

Conducted in May, the survey results show that lenders reporting demand growth for GSE eligible purchase mortgages over the past three months rebounded to 70 percent on net, compared with 20 percent in the prior quarter (Q1 2016) and 71 percent one year ago (Q2 2015). Additionally, lenders’ purchase demand expectations for the next three months remain near the levels seen during the same period last year – dipping slightly for GSE eligible and non-GSE eligible mortgages to 60 percent and 43 percent, respectively, but ticking up to 58 percent for government loans.

While lenders also reported a moderate net easing of credit standards across all loan types over the prior three months, expectations to ease standards during the next three months have gradually ticked downward on net since Q4 2015, with most lenders expecting to keep their credit standards unchanged. For GSE eligible loans, only 4 percent of lenders on net expect to further ease credit standards within the next three months.

“Key survey sentiment indicators suggest that lenders remain cautiously optimistic in their market outlook,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “The outlook for purchase demand growth over the next three months returned to levels similar to last year, while the outlook for refinance demand and profit margin improved moderately versus last year’s levels. Additionally, the trend toward easing of credit standards appears to be tapering off, as the vast majority of lenders, around 90 percent, reported plans to keep their credit standards about the same. The survey was conducted before the recent May jobs report, and the weaker reported job gains might potentially temper this optimism.”

Mortgage Lender Sentiment Survey Highlights

Purchase Mortgage Demand over Prior Three Months and Expectations for Next Three Months Near Same Levels Seen One Year Ago

• Net demand growth for non-GSE eligible purchase mortgages over the prior three months is down slightly year-over-year, largely due to a significant decrease in growth among mid-sized institutions and mortgage banks since Q2 2015, but has rebounded from the prior quarter.
• Net demand growth expectations for the next three months fell somewhat for non-GSE eligible mortgages but ticked upward for government loans.

Refinance Mortgage Demand Expected to Decrease Significantly over Next Three Months

• Lenders reported a significant increase from last quarter (Q1 2016) in net demand growth for refinance mortgages across all loan types over the prior three months.
• But, expectations for refinance mortgage demand for the next three months decreased dramatically since last quarter (Q1 2016).

Moderate Easing of Credit Standards Reported over Prior Three Months, but Expectations for Next Three Months Continue to Dip

• Lenders continue to report net easing of credit standards, albeit moderate, across all loan types over the prior three months, with standards for government loans rebounding after a net tightening seen last quarter (Q1 2016).
• However, net easing expectations for the next three months have …read more

  From:: Finance and Economy