Author: Eric C. Peck

Despite mortgage rates hitting a near 23-year-high last week, the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA) found overall mortgage application volume rising 2.3% week-over-week, for the week ending August 25, 2023. The MBA’s Refinance Index, a reading that had dropped for several weeks as well, rose 3% from the previous week, yet was still 28% lower than the same week just one year ago. The seasonally adjusted Purchase Index increased 2% from one week earlier. The unadjusted Purchase Index decreased a slight 0.3% compared to the previous week, and was 27% lower than the same week one year ago. “Mortgage rates were mostly unchanged last week, with the 30-year fixed rate remaining at 7.31%–the highest since December 2000. Treasury yields peaked early in the week, and did move lower by the end, which may have spurred some activity,” said Joel Kan, MBA’s VP and Deputy Chief Economist. “Mortgage applications for home purchases and refinances increased for the first time in five weeks, but remained at low levels. Purchase applications increased, but were still 27% lower than a year ago, as elevated mortgage rates and tight housing inventory continue to weigh on home buying activity.” The MBA reports that the refi share of mortgage activity increased to 30.1% of total applications, up from 29.5% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.5% of total applications. “The refinance market continues to be slow despite last week’s gain, which was driven by a 7.9% spike in conventional refinances,” added Kan. “Government refinance applications dropped more than 10% last week.” By loan type, the FHA share of total applications decreased to 13.2% from 14.3% the week prior. The VA share of total applications remained unchanged at 11.6% from the week prior. The USDA share of total applications decreased...

CoreLogic has released preliminary data showing that 808,321 single-family and multifamily homes along the Florida Gulf Coast with a reconstruction cost value (RCV) of approximately $238.4 billion are at potential risk of storm surge damage from Hurricane Idalia (these figures were assessed assuming Hurricane Idalia made landfall as a Category 3 hurricane, based on the National Hurricane Center’s August 29th forecast). As of Wednesday morning, according to the National Hurricane Center, when the storm finally made landfall, Hurricane Idalia had maximum sustained winds of 90 miles per hour, with stronger gusts, downgrading it to a Category 1 hurricane, as the center of the storm crossed into southern Georgia. As of noon EST Wednesday, CNN reports that a flash flood emergency was issued for the Florida Counties of Brooks and Lowndes, including Valdosta, until 12:45 p.m. ET. Between three to six inches of rain have fallen already from Hurricane Idalia, and additional amounts of one to two inches are expected Wednesday afternoon and evening. CNN also reports that water levels on the Steinhatchee River, in the town of Steinchatchee in Florida’s Big Bend region, near where Hurricane Idalia made landfall, rose more than nine feet in nearly two hours on Wednesday morning. The National Weather Service expects extensive and intense rainfall across northern Florida, as well as coastal George and the Carolinas. A moderate (at least 40% chance) flash flood risk is possible through Friday, Sept. 1, especially in urban environments such as Jacksonville, Florida; Savannah, Georgia; Charleston, South Carolina; and Wilmington, North Carolina. A slight flash flood risk (at least 15% chance) extends as far inland as Chattanooga, Tennessee; and Atlanta. Surge depths are forecasted to reach eight- to 12-feet above ground surface from the Aucilla River in the Apalachee Bay to the Chassahowitzka River in Florida’s Citrus County. Storm surge depths of four-...

Mortgage servicers nationwide continue to work with struggling homeowners to avoid loan default, as early delinquencies remain flat and late stage delinquencies show positive movement, according to Fitch Ratings’ 1Q23 U.S. RMBS Servicer Metric Report. “While loan portfolio delinquencies for Fitch-rated bank and non-bank servicers were flat or modestly improved for the fifth consecutive quarter, the impact of borrower assistance programs and successful workout strategies is holding new foreclosure filings to a minimum,” said Fitch Ratings Director Richard Koch. Fitch’s U.S. RMBS Servicer Metric Report is published quarterly with the most recent four quarters of servicer performance data included, providing transparency into servicing industry trends in the bank and non-bank sectors. Bank servicers reported an increase in loan modification requests as a percentage of all loss mitigation volume, quarter-over-quarter to 31% from 25%, while that volume was down to 13% from 17% for non-bank servicers. Active forbearance plans for bank servicers increased quarter-over-quarter to 36% from 11.5% as a percentage of loss mitigation volume, indicating an influx of applications from borrowers that had not previously exhausted forbearance. Non-bank servicers reported a decrease in forbearance plans to 35% from 47%, quarter-over-quarter. The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey for July 2023 revealed that the total number of loans now in forbearance dropped by five basis points from 0.44% of servicers’ portfolio volume in the prior month to 0.39% as of July 31, 2023. According to MBA’s estimate, 195,000 U.S. homeowners are currently in forbearance plans, and since March 2020, mortgage servicers have provided forbearance to approximately 7.9 million borrowers nationwide. “The prevalence of forbearance plans has dramatically dropped since 2020, and the reasons that borrowers are in forbearance are changing,” said Marina Walsh, CMB, MBA’s VP of Industry Analysis. “About two-thirds of borrowers are still in forbearance because of the effects of COVID-19,...

The U.S. Department of Housing & Urban Development (HUD) has awarded $1.3 million to the state of Hawaii to support people experiencing homelessness–those living in an emergency shelter, transitional housing, or a place not meant for human habitation–and people at risk of homelessness through HUD’s Rapid Unsheltered Survivor Housing (RUSH) program. The funding was awarded to assist communities in Maui in the wake of recent wildfires. Early estimates from CoreLogic found that 3,088 residential homes with $1.3 billion in total reconstruction cost value within preliminary wildfire perimeters were damaged. While FEMA, the Red Cross and local community members have stepped up to assist survivors, the severity of the damage and displacement experienced in the Lāhainā and Upcountry Maui regions has exceeded local sheltering capacity, and more assistance has been deemed necessary. According to CBS News, the wildfires in Maui have burned thousands of acres since the blaze began in early August. The Lahaina fire burned an estimated 2,170 acres, or approximately 3.4 square miles. The wildfires began on August 8, and since then, the Olinda fire in central Maui has burned an estimated 1,081 acres and the nearby Kula fire burned an estimated 202 acres. CBS reports both of these blazes are about 85% contained. The Pulehu-Kihei fire was 100% contained as of August 12, and as of August 15, officials estimated 3,200 acres had burned. Together, those estimates represent more than 10 square miles of Maui's total area of 735 square miles that have been destroyed in the wildfires. HUD’s RUSH funding is responding to the surge in shelter needs to assist the community in addressing homelessness that could be further exacerbated by the disaster. Already declared a major disaster area by President Joseph R. Biden Federal aid has been sent to supplement state and local recovery efforts in the areas affected by the...

CMG Home Loans, the retail division of CMG Financial, has added Area Sales Manager Michael Wise to the company. Wise, a passionate mortgage expert with more than 30 years of industry experience, previously founded Capstone Direct Mortgage Financing. Wise founded his company in 2007, and managed to bring it through one of the most difficult times in the mortgage industry. His ability to navigate this tough period and develop a business strong enough to withstand such adversity is a notable accomplishment proving his ability to eliminate people’s greatest mortgage fears. The majority of his work is built on developing strong relationships with clients and partners, providing exceptional service, working with integrity and honesty, and valuing the importance of knowledge and expertise. “I can't contain my excitement about joining the CMG Home Loans team,” said Wise. “The company's core values center around prioritizing the customer above all else truly reflects their commitment. Another thing that sets CMG apart is their innovation. I'm thrilled about the All In One Loan, a remarkable product that enables borrowers to save a substantial amount on interest and pay off their loans quicker, all while retaining access to their home equity. It's truly a game-changer!” CMG Mortgage, d/b/a CMG Home Loans was founded in 1993 by CEO Christopher M. George, who served as Chairman of the Mortgage Bankers Association (MBA) in 2019. CMG makes its products and services available to the market through three distinct origination channels including retail lending, wholesale lending, and correspondent lending. CMG currently operates in all states, including the District of Columbia, and holds approvals with FNMA, FHLMC, and GNMA. “CMG is thrilled to have Mike Wise join our leadership team in California,” said Rose Marie David, SVP of the CMG Retail Division. “As the former owner and CEO of Capstone Direct, Mike brings years...