TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/317625
Th e M Rep o RT | 7 Social life These sTories heaTed up The MRepoRt's social Media channels The sTory: survey Finds Growing Frustration over dodd-Frank The scoop: The results of a recent small-bank survey found small banks are facing rising compliance costs and finding it harder to serve customers due to the new regulations from the Dodd-Frank Wall Street Reform and Consumer Protection Act. The study was published through the Mercatus Center, a university-based research hub at George Mason University. The anonymous online survey queried approximately 200 banks with $10 billion or less in assets. The surveyed banks revealed frustrations over the Dodd-Frank rollout. The sTory: one-Third of Bankers to only lend Within QM The scoop: The latest version of the Dodd-Frank mortgage regulations has bankers worried about lending, and their fear has already affected who can qualify for mortgage loans. Recently, the American Bankers Association (ABA) released the results of its latest annual Real Estate Lending Survey, which clearly show signs of caution among loan officers. According to the ABA, more than 80 percent of bankers surveyed believe that tightened Dodd-Frank rules will restrict credit, thereby narrowing the pool of candidates able to secure mortgages. The sTory: Mounting legal expenses eat up Bofa's earnings The scoop: Legal expenses took a substantial bite out of Bank of America's first-quarter earnings, resulting in a net loss of $276 million to start the year. The loss follows a profitable fourth quarter of 2013, which saw the bank taking in $3.4 billion. For the first quarter of 2013, BofA reported net income of $1.5 billion. The results for the first quarter include $6 billion in litigation expenses related to a major settlement with the Federal Housing Finance Agency (FHFA) over legacy securities claims. Also figuring in were additional reserves for previously disclosed legacy mortgage-related issues. The sTory: refinance activity lifts Mortgage apps in latest index The scoop: The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey, reporting a 4.3 percent improvement in loan application volume for the week ending April 11. On an unadjusted basis, the survey recorded a 5 percent week-over-week increase. The headline index was boosted by a 7 percent gain in MBA's measure of refinance applications, which has been weak over the past few weeks as rising mortgage rates drain the pool of remaining potential refinances. The increase brought the refinance share of total mortgage activity back up a percentage point to 52 percent. When Leaders Need To Follow MReport keeps tabs on the industry on several social networking platforms. From exclusive chats to breaking news, there's always a good reason to see what we're posting. Follow @TheMReportNews to find out when our next tweet chat will be held and tweet us using #themreport. Also, be sure to like us at Facebook.com/TheMReport. @danrizzoTTi: "May cool the SeLLeR market down soon—41% of homes Unaffordable on Two Median Incomes." @MorTGaGeFliMFlaM: "The cost of resolving more of our mortgage issues hurt our earnings this quarter," said Brian Moynihan, Ceo of BoA." @noVa_hoMes4sale: "Still have room to rise RT @ TheMReportNews: overvalued Markets on the Rise; National prices Still Under"