April 2016 - Tech Revolution

TheMReport — News and strategies for the evolving mortgage marketplace.

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TH E M R EP O RT | 13 MONTH IN REVIEW It was a busy month for the industry, with reports from all the big names in the industry: the Fed, Ocwen, Freddie Mac, and more. Check out the headlines you might have missed along the way. 1 The U.S. Treasury issued its first guidelines regarding the termination of the Making Home Affordable program, which will take place December 31. The guidelines covered policies, procedures, the Home Affordable Modification Program, and more. 2 The Financial Services Committee announced 10 bills that would provide regulatory relief for individuals and small businesses. One of these bills was the Taking Account of Institutions with Low Operation Risk (TAILOR), which would lighten small community banks and credit unions with current regulatory and compliance burdens. 3 Ocwen reported its second straight year of financial loss, with a $224.3 million-dollar loss in Q4 2015 and a $246.7 million-dollar loss for all of 2015. While the loss is significant, it is an improvement from Ocwen's 2014 losses, which totaled $546 million for the year. 4 Freddie Mac's Mortgage Lender Sentiment Survey found a rising level of pessimism among lenders. New regulatory requirements, high levels of competition, and depressed household formation were among the biggest reasons noted. 5 The National Credit Union Administration reported signifi- cant growth in the credit union sector, with a year-over-year increase of 6.9 percent in shares and deposits and a 7.3 increase in total assets. 6 The Federal Reserve Bank of New York released a report— "The Graying of American Debt"— which found that originations are dropping for middle-aged borrowers between 40 and 60. The report noted a 60-percent decrease between 2004 and 2015 in these loans. 7 Fannie Mae and Freddie Mac were once again deemed private companies when the Ninth Circuit Court of Appeals affirmed a recent district court's decision of the same. 8 The Consumer Financial Protection Bureau's Monthly Complaint Report showed that mort- gages are the top complained-about financial product in the country. The CFPB handled more than 800,000 mortgage-related complaints in February alone. 9 First American Chief Economist Mark Fleming issued a white paper that predicts significant growth in the minority home ownership market over the next 45 years. According to the paper, the fastest-growing ethnic group in this time period will be Hispanics. 10 The U.S. Census Bureau of the Department of Commerce reported a rise in construction spending from January 2014 and January 2015 of 10.4 percent. The month-over-month increase between December 2015 and January 2015 was 1.5 percent. 11 Equifax's National Consumer Credit Trends Report found that while first-time buyer mortgage debts are on the rise—up 2.1 percent year- over-year—debts on home equity lines of credit (HELOC) are down. MCS Valuations is committed to providing the best possible service and most reliable value to our clients. Backed by industry-leading data and experts with decades of experience, MCS Valuations is your trusted resource for all of your valuation needs. 8 0 0 . 7 9 1 . 7 1 4 5 | M C S V A L U A T I O N S . C O M | I N F O @ M C S V A L U A T I O N S . C O M

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