From ABA Daily Newsbytes--


Home Price Growth Moderates

Home prices in 20 major metro areas rose 1.1 percent in May, according to yesterday’s Standard & Poor’s/Case-Shiller Home Price Index release. Home prices in the Case-Shiller 20-city composite were up 9.3 percent year-on-year, a slower annual growth rate than in April. All 20 cities saw price growth in May, with the biggest year-on-year growth in Las Vegas, San Francisco and Miami.


Consumer Confidence Improves

The Consumer Confidence Index rose from 86.4 in June to 90.9 in July -- reaching its highest level since October 2007 -- the Conference Board reported yesterday.

“Strong job growth helped boost consumers’ assessment of current conditions, while brighter short-term outlooks for the economy and jobs, and to a lesser extent personal income, drove the gain in expectations,” said the Conference Board’s Lynn Franco. “Recent improvements in consumer confidence, in particular expectations, suggest the recent strengthening in growth is likely to continue into the second half of this year.”

Friday Rate Update

Mortgage Rates Unchanged


The average rate for a 30-year fixed-rate mortgage remained unchanged at 4.13 percent, Freddie Mac said yesterday. At this time in 2013, the 30-year FRM rate averaged 4.31 percent.


--ABA Daily Newsbytes

An Avalanche of Regulatoin

Infographic that summarizes the new burden of regulation on community banks here.

--ABA

Mortgage Rates Edge Down Slightly


The average rate for a 30-year fixed-rate mortgage edged down to 4.13 percent from the previous week’s 4.15 percent, Freddie Mac said yesterday. At this time in 2013, the 30-year FRM rate averaged 4.37 percent.

---ABA Daily Newsbytes

Downside of Low Mortgage Rates? Reluctance to Sell

Many homeowners are declining to list for sale because it would mean forfeiting an ultra-low mortgage rate and taking out a new loan bearing interest up to a percentage point higher. Many Americans refinanced between late 2011 and mid-2013, when rates held below 4 percent. More than a third of homes with a mortgage now bear interest below that threshold, estimates real estate data provider CoreLogic. While mortgage interest remains low today at 4.2 percent on average, it is still three-quarters of a point higher than it was 18 months ago. As many as 3.6 million homeowners are unlikely to sell this year because they would have to give up a lower rate, estimates CoreLogic chief economist Mark Fleming. As a result, the supply of available homes is limited, which has contributed to higher prices. The number of available homes last year was the equivalent of just 4.9 months' worth of sales, according to the National Association of Realtors, far below the typical figure of six months.

From "Downside of Low Mortgage Rates? Reluctance to Sell"
Associated Press (07/15/14)

CFPB Targets Mini-Correspondent Divisions

The Consumer Financial Protection Bureau is focusing on a possible loophole that its qualified mortgage rules have possibly created for lenders. More lenders have entered the mini-correspondent business since the QM rules took effect on Jan. 10. "The CFPB is concerned that some mortgage brokers may be shifting to the mini-correspondent model under the mistaken belief that identifying themselves as such would automatically exempt them from important consumer protection rules affecting broker compensation," according to a report the agency released on July 11. The CFPB has published guidance on how it evaluates mortgage transactions involving mini-correspondent lenders, confirming who must comply with the broker compensation rules, regardless of the way they describe their business structure. The bureau plans to closely monitor mini-correspondent practices, including former mortgage brokers that converted to this form.

From "CFPB Targets Mini-Correspondent Divisions"
Housing Wire (07/11/14) Swanson, Brena

Mortgage Rates Stage a Pullback

Mortgage interest jumped in June of last year, after then-Federal Reserve head Ben Bernanke indicated that rates were poised to return to normal levels after hitting historic lows. The 30-year fixed rate, which had averaged 3.54 percent in the month before Bernanke's remarks, quickly rose to as much as 4.49 percent. The escalation helped end the refinancing boom. However, a weak 2014 first quarter and lukewarm demand to buy homes have again driven interest rates back down below year-ago levels.

From "Mortgage Rates Stage a Pullback"
Investor's Business Daily (07/08/14) P. A2 Riquier, Andrea

CFPB Clarifies Questions on Mortgage Successors


The Consumer Financial Protection Bureau yesterday issued an interpretive rule clarifying that a borrower’s heir may be added to a mortgage without triggering the Ability-to-Repay rule. The clarification came in response to industry concerns that creditors may be obligated to determine the ability to repay of a successor-in-interest assuming a deceased borrower’s mortgage.

“There can be significant consequences for a successor that is not able to become an obligor on a mortgage,” the bureau said, noting that the interpretation will allow successors to seek a loan modification if necessary to keep the home. In addition to inheritances, the rule also applies to other situations, including transfers to living trusts, transfers of title from parents to children and transfers resulting from divorces.

---ABA Daily Newsbytes

Rate Update

Mortgage Rates Slip Slightly

The average rate for a 30-year fixed-rate mortgage edged down to 4.12 percent from the previous week’s 4.14 percent, Freddie Mac said Thursday. At this time in 2013, the 30-year FRM rate averaged 4.29 percent.