NMP - April 2017 - 22

✒
By Mat Ishbia

nmp news flash

continued from page 16

first-time homebuyers remains
robust despite the strong spring
sellers' market and rising rates,
resulting in a shrinking
underperformance gap, as the
market aligns with its potential."
One-Third of Home Sales
Were All-Cash Transactions

VA IRRRLs

T

here is a lot of chatter in the industry and a lot of
people are asking if lenders are doing right by
military veterans. The Mortgage Bankers
Association (MBA) is pushing Ginnie Mae and
saying that lenders shouldn't refinance veterans
or put them in IRRRLs so fast. The organization
is saying that veterans should be forced to stay in their
mortgages for a minimum of six months. That's the wrong
way to think about it. It seems like the MBA is protecting the
mega retail lenders. Putting in a quasi-pre-payment penalty to
make it more difficult to refinance is the wrong move. Don't
focus on trying to stop veterans from refinancing. If veterans
were given great rates and fees the first time around, there
wouldn't be a need to refinance so quickly.
Freddie Mac's Appraisal Waiver
Freddie Mac is coming out with its own version of Fannie
Mae's Property Inspection Waiver (PIW), and it will be
released industrywide in the next three to six months.
Everyone will have access to getting no appraisal on a
conventional loan through LP very soon. It will be for
refinances and purchases, on single-family residences and
loans that are 80 percent LTV and below. On purchases,
brokers can now save the borrower money and speed up the
timeline. It will make realtors happy and be a great thing.

APRIL 2017 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

22
Brokers: The Fastest-Growing Mortgage Channel
From 2015 to 2016, the wholesale market grew by 22
percent-which is a faster growth rate than both retail and
correspondent channels. Why is this happening? First of all,
more loan originators are joining broker shops. Secondly, a
survey conducted by Freddie Mac highlights what realtors
value and brokers dominate in five key categories: Local
presence in the marketplace, ease of doing business,
mortgage closing speed, fees and costs, and multiple product
options. Brokers will continue to grow moving forward.

Cash sales accounted for 33.1
percent of total home sales in
December, down 1.3 percent
year-over-year, according to new
data from CoreLogic. For the fullyear 2016, the cash sales share
was 32.1 percent, 2.2 percent
below the full-year 2015 share.
CoreLogic estimated that cash
sales will reach 25 percent of all
transactions by mid-2019.
Real-estate owned (REO) sales
had the largest cash sales share
in December, at 61.1 percent,
followed by short sales at 34.2
percent, resales at 33 percent
and newly constructed homes at
16.7 percent. New York and New
Jersey had the largest cash sales
share among the states in
December, 47.9 percent and 47.6
percent, respectively.
CoreLogic also reported the
distressed sales share of 7.8
percent in December was the
lowest distressed sales share for
any month since October 2007.
The distressed sales share for the
full-year 2016 was 8.9 percent,
down 2.1 percent from the fullyear 2015 and the lowest annual
distressed sales share since the
six percent level recorded in
2007.
Q4 2016 Home Equity for
Seniors Up by $170.7 Billion

Mat Ishbia is president/CEO of United Wholesale
Mortgage (UWM), the nation's number one
wholesale lender. A leading advocate of mortgage
brokers, Mat has changed the lending platform,
turning UWM into a $23 billion company and a top
national workplace.

SPONSORED EDITORIAL

Retirement-aged homeowners
saw a combined 2.8 percent
increase of $170.7 billion in home
equity during the fourth quarter
of 2016, which increased their
total housing wealth to $6.2
trillion, according to new data
from the National Reverse
Mortgage Lenders Association
(NRMLA).

During the fourth quarter, a 2.4
percent increase in home values
for owners 62 and older helped
to boost the NRMLA/RiskSpan
Reverse Mortgage Market Index
(RMMI) to 221.75, hitting a record
high for the 17-year-old index.
On a year-over-year basis, the
RMMI index increased by nine
percent in 2016, compared to an
increase of 8.6 percent in 2015
and eight percent in 2014.
"The strong RMMI in the fourth
quarter of last year shows that
home equity continues to be a
valuable asset for homeowners
62 and older," said NRMLA
President and CEO Peter Bell.
"It's time for consumers to study
what it means to have home
equity and to learn about its
strategic uses, including how it
can be used to support
retirement goals."
Mortgage Loan
Defects on the Rise

The frequency of defects,
fraudulence and
misrepresentation in the
information submitted in
mortgage loan applications
increased 4.1 percent from
January to February, according
to the latest Loan Application
Defect Index data from First
American Financial Corporation.
On a year-over-year
measurement, the Defect Index
increased by 1.3 percent from
February 2016.
The Defect Index for refinance
transactions increased 3.4
percent month-over-month from
January to February, although it
is 6.2 percent lower than a year
ago. The Defect Index for
purchase transactions increased
2.4 percent from January to
February and is 2.4 percent
higher on a year-over-year basis.
"This month, the Loan
Application Defect Index surged
higher as rising mortgage rates
continue to put downward
pressure on lower risk mortgage
refinance activity," said Mark
Fleming, chief economist at First
American, who warned that the
situation can potential grow more
problematic. "The increasing
continued on page 26


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Table of Contents for the Digital Edition of NMP - April 2017

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