Improving the 30-Year Fixed-Rate Mortgage

The 30-year fixed rate mortgage has three major flaws, according to Fed staffers Wayne Passmore and Alexander von Hafften. “First, because homeowner equity accumulates slowly during the first decade, homeowners are essentially renting their homes from lenders. …Second, in each monthly mortgage payment, homeowners substantially compensate capital markets investors for the ability to prepay. …Third, refinancing mortgages is often very costly. We propose a new fixed-rate mortgage, called the Fixed-Payment-COFI mortgage, that resolves these three flaws.” 

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Posted: September 8th, 2017 | Permalink

August 2017 GSE Report

Moody’s Analytics projects loss in southeast Texas to be between $51 billion and $75 billion,with home and vehicle damage estimated at $30 billion to $40 billion. However, total losses could continue to rise as the storm moves into Louisiana. According to [Warren] Buffett, if those uninsured losses top $150 billion, there will be noticeable effects on the economy. “I don’t think it would be a full percentage point for a year or anything like that. But it has a real effect. It destroys wealth. If there’s $150 billion, or something, of uninsured losses that’s real wealth,” Buffett said on CNBC’s Squawk on the Street.


DS News

Brianna Gilpin

August 30, 2017

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Posted: September 5th, 2017 | Permalink

Streamlining the Mortgage Lending Process

Bringing simplicity and transparency to consumer finance. 

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Posted: August 25th, 2017 | Permalink

Sixty Years of PMI Insurance in the U.S.

“Through six decades, the PMI industry has played an important role in expanding credit access and mitigating lender and GSE risk,” wrote Urban Institute’s Laurie Goodman. “Although the industry went through substantial turmoil during the last housing and financial crisis, it has since recovered and restructured and should be more resilient going forward. Demographic changes and other mortgage market developments provide the industry both opportunities and challenges to expand its role to support historically underserved populations and first-time homebuyers using private capital.”

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Posted: August 24th, 2017 | Permalink

U.S. Housing Policy Outlook

“As the 115th Congress continues to debate a wide range of fiscal and public policy priorities this summer, the issue of housing finance reform at large remains on the congressional to-do list,” said Corelogic’s Stuart Pratt. “Part of that reform includes examining the future state of the appraisal industry. …While not at the epicenter of broader housing finance reform discussions at this point, addressing the challenges and capitalizing on the opportunities facing the appraisal industry is a topic that is gaining greater levels of attention in the halls of Congress.”  

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Posted: July 10th, 2017 | Permalink

The Power of Prediction in Digital Mortgages

"The rise of digital mortgage lenders is threatening traditional lenders’ market share,” wrote Accenture. “The majority of top mortgage lenders by origination in 2016 (six out of 10) were nonbanks, up from just two in 2011.1 Based on Accenture research and the level of industry disruption and consolidation, 20 to 30 percent of today’s lenders will be gone by 2020. Digital is not just changing the players; it is changing the game.”

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Posted: June 29th, 2017 | Permalink