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SUBSCRIBE ? Volume 10 | Issue 106 | Wednesday, June 1, 2011
The Lede
MBA, Consumer Groups Join Forces on QRM Concerns
The Mortgage Bankers Association and several major consumer groups announced a campaign aimed at educating legislators, regulators and others on key issues involving a proposed rule that would create a "qualified residential mortgage" exemption to risk retention requirements in the Dodd-Frank Act.
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Commercial/Multifamily News

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Article Abstracts

Top National News

Unlikely Allies Fight Loan Risk Provisions
American Banker (06/01/11) P. 1 Adler, Joe
The Mortgage Bankers Association has teamed with several consumer groups to press for looser risk-retention rules, arguing that the narrow definition of qualified residential mortgages would hike costs for borrowers. David Stevens, CEO of the industry group, said, "We're doing briefings on the Hill and we're hoping to meet with regulators, arm in arm with consumer groups that are strongly concerned about impacts to homeownership access for moderate-income families across this country with the way rule is written." He supports elimination of hard limits for debt-to-income and loan-to-value ratios and warns that FHA risk could increase as a result of a narrow QRM definition.

Single-Family Delinquencies Continue to Decline at Freddie Mac (06/01/11) Michael, Brian
The delinquency rate for single-family homes in Freddie Mac's mortgage portfolio fell to 3.57 percent in April, down from 3.63 percent in March and 4.06 percent a year earlier. The multifamily delinquency rate, meanwhile, rose for the fourth straight month to 0.40 percent, up from 0.36 percent in March and 0.22 percent last April. The total mortgage portfolio shrank at an annualized rate of 3.2 percent in April.

Home Prices Hit Lowest Level Since April '09 in Double Dip
Washington Post (06/01/11) P. A12 ElBoghdady, Dina
The S&P/Case-Shiller index shows that U.S. home prices slid 4.2 percent in the first three months of this year, falling to the lowest point since 2009. The movement, with values now below pre-crisis levels, represents a "double dip." Wells Fargo Securities senior economist Mark Vitner notes that there are 2.2 million homes in foreclosure and another 2 million mortgages that are more than 90 days late. For prices to stabilize, he says, about a third of those foreclosures must be cleared.

Banks Hit Hurdle to Foreclosures
Wall Street Journal (06/01/11) P. A4 Timiraos, Nick
Some distressed homeowners are successfully arguing that their mortgage companies have no proof that they own the loans and, thus, have no legal standing to seize the properties. While such cases have been making their way through the courts for the past few years, judges recently have been halting foreclosures after concluding that flawed paperwork is a more serious problem than initially believed. Borrowers are arguing that banks did not properly assign ownership of the loans after they were bundled into securities, while others allegedly backdated or fabricated documents to fix those errors.

Fed's Research Chief to Retire
Philadelphia Inquirer (06/01/11)
The head of U.S. economic research and forecasting at the Federal Reserve will retire Sept. 30. David Stockton briefs Fed policymakers on interest rates as well as foreign and domestic economic developments, along with two other top Board of Governors staff officials. The Fed has not named a successor for Stockton.

Residential Finance News

Housing Data Point to Price 'Double-Dip'
May proved to be a bad month for housing data. Consumer confidence took a hit, too, despite improving economic demographics.
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Mortgage Applications Fall in MBA Weekly Survey
Mortgage application activity fell for the first time in four weeks as weakened economic data and dropping home prices and lower home equity made it difficult for borrowers to obtain loans, the Mortgage Bankers Association reported this morning in its Weekly Application Survey for the week ending May 27.
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People in the News
President Obama yesterday said he intends to nominate John Bryson as the secretary of the Commerce Department, replacing Gary Locke, who will become U.S. ambassador to China.
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Commercial/Multifamily News

Jones Lang LaSalle Acquires King Sturge, Leading M&A Trend
Jones Lang LaSalle's $319 million merger with international property consultant King Sturge, London, exemplifies an ongoing trend of global and domestic mergers and acquisitions in commercial real estate.
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Dealmaker of the Day
Colliers International, Seattle, secured a $25 million interim bridge loan to reposition an office property in Boston's financial district.
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MBA News

MBA/FHA Bimonthly LIVE Online Workshop June 2
The Mortgage Bankers Association and FHA hold their next bimonthly LIVE Online Workshop Series this Thursday, June 2 from 2:00-3:30 p.m. ET.
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MBA 98th Annual Convention & Expo Oct. 9-12
Registration is now open for the Mortgage Bankers Association's 98th Annual Convention & Expo at the Hyatt Regency Chicago, October 9-12.
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Research Institute for Housing America, MBA's Think Tank
Research Institute for Housing America is a 501(c)(3) trust fund sponsored by the Mortgage Bankers Association. Its chief purpose is to encourage and aid the pursuit of knowledge of mortgage markets and real estate finance.
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"Our primary goal is to provide a united front in opposition to the proposed rule's restrictive down payment, loan-to-value and debt-to-income requirements--measures that were never intended by Congress and that will restrict the return of private capital to the mortgage market and withhold credit from tens of thousands of qualified borrowers."
--MBA President and CEO David Stevens,
on an education campaign being undertaken by MBA and several consumer groups involving concerns about a proposed risk retention rule.
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David Stevens, President and CEO, Mortgage Bankers Association

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