Mortgage rates moved up slightly during the past week as prospective homebuyers re-entered the market, Freddie Mac reported June 4 in its Primary Mortgage Market Survey. While the economy slowly rebounds, signs indicate that home sales are picking up nicely even as the supply of available homes remains limited.
The U.S. economy will experience about a 6% contraction this year, but will begin to recover from a severe second-quarter downturn in the third quarter, according to the latest forecast of the American Bankers Association’s Economic Advisory Committee.
While the group, made up of 16 chief economists from some of the North America’s largest banks, is unanimous that the economy will expand in the third quarter, there are a wide range of views as to the damage caused by the COVID-19 shock. Four committee members believe the economy will shrink less than 5% in 2020 while just as many see a greater than 8% contraction. The committee members were divided on when they expect economic output to recover to the pre-pandemic level, with the largest number of committee members forecasting it will happen in 2022.
Join us Thursday to elect the 2021 Slate of Nominees for Officers, Directors, Regional Representative, & Alternate Regional Representatives, hear updates about what the Chapter has been doing, and congratulate our newly designated members!
Please make sure to register prior to joining the meeting in order to receive the 2 AI credits.
The Appraisal Institute has assembled a stellar lineup of appraisers from the Top 10 Metropolitan Statistical Areas to help investors, developers, brokers, and other industry stakeholders understand initial buyer and seller reaction to COVID-19.
Residential real estate appraisers from across the country will summarize initial observations and identify considerations that appraisers will evaluate in the near and long term. We will also discuss trends in rural markets, appraiser reaction to policy changes of the GSEs, FHA and VA, and the dynamics with employee relocation appraisals, which require forecasting.
Now available! Last week's AI Answers features a discussion with Lyle Radke, director of collateral policy at Fannie Mae. We received information on a range of issues, including a partnership between AI and Fannie Mae on diversity in the appraisal profession, the strong performance of appraisers in the COVID-19 pandemic, and what's ahead for Fannie Mae for the remainder of the year.
The Federal Housing Finance Agency (FHFA) announced that it is seeking comments on a notice of proposed rulemaking that establishes a new regulatory capital framework for Fannie Mae and Freddie Mac (the Enterprises). The proposed rule is a re-proposal of the notice of proposed rulemaking published in July 2018. Comments will be due 60 days after the notice is published in the Federal Register.
The 2018 proposal remains the foundation of the re-proposal. The enhancements in the new proposal preserve the mortgage risk-sensitive framework of the 2018 proposal, while increasing the quantity and quality of the Enterprises' regulatory capital and reducing the pro-cyclicality of the aggregate capital requirements. Together, the enhancements in the re-proposal ensure each Enterprise's safety and soundness and its ability to fulfill its statutory mission across the economic cycle, in particular during periods of financial stress. The re-proposal is also a critical step toward responsibly ending the conservatorships.
Now available! This week's AI Answers features a discussion with Lyle Radke, director of collateral policy at Fannie Mae. We received information on a range of issues, including a partnership between AI and Fannie Mae on diversity in the appraisal profession, the strong performance of appraisers in the COVID-19 pandemic, and what's ahead for Fannie Mae for the remainder of the year.
Craig Steinley, MAI, SRA, AI-GRS, AI-RRS, of Rapid City, South Dakota, was nominated for 2021 Appraisal Institute vice president by the AI National Nominating Committee at its May 6 meeting, which was held via videoconference due to the coronavirus pandemic.
National Nominating Committee Chair Stephen S. Wagner, MAI, SRA, AI-GRS, submitted the committee’s nomination to the AI Board of Directors at its May 7 meeting. Board members may file petitions for additional nominees in accordance with the Appraisal Institute Bylaws. The AI Board of Directors is expected to elect the 2021 vice president at its Aug. 5-6 meeting.
Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.26 percent.
“Mortgage rates stayed at or near record lows for the fifth straight week and homeowners are taking advantage with refinance activity remaining high,” said Sam Khater, Freddie Mac’s Chief Economist. “Although purchase demand declined thirty-five percent year-over-year in mid-April, demand has improved modestly over the last three weeks.”
More than 3 in 4 potential sellers – 77% – are preparing to sell their homes following the end of stay-at-home orders, with half completing do-it-yourself home improvement projects, according to a new survey from the National Association of Realtors®.
“After a pause, home sellers are gearing up to list their properties with the reopening of the economy,” said NAR Chief Economist Lawrence Yun. “Plenty of buyers also appear ready to take advantage of record-low mortgage rates and the stability that comes with these locked-in monthly payments into future years.”
By Phil Hall
Fannie Mae has issued a Lender Letter to its single-family sellers that updated the temporary policies enacted on March 31 in response to the COVID-19 crisis while reaffirming a key tenet regarding borrower income requirements.
By Dean Boerner
As public equities-laden pension funds reel from massive hits leveled by stock market volatility this year, commercial real estate will likely continue growing in importance for institutional investors in the long term, experts say.
It's with great sadness that we report the passing of George Harrison Keeling, father-in-law of NCAI member and 2016 AI President, Scott Robinson, MAI, SRA, AI-GRS, AI-RRS, of Salisbury, NC. Our deepest sympathies go out to Scott and George's family.
The Appraisal Institute is devoted to helping appraisers reach their highest potential and making sure they have all the knowledge needed to work in the valuation profession, according to the latest video from the organization. In the video, Tonia Vailas, MAI, AI-GRS, and Michael V. Tankersley, MAI, SRA, AI-GRS, AI-RRS, share their experiences working with trainees.
These appraisers discuss what steps they are taking to make sure their trainees succeed in the profession and the best ways that trainees can find licensed appraisers to work alongside.
Creditors have flexibility regarding when they must provide appraisals to mortgage applicants, according to an updated Q&A on the Equal Credit Opportunity Act Valuations Rule released April 29 by the Consumer Financial Protection Bureau. Under ordinary circumstance, creditors are required to provide appraisals promptly upon completion or three business days prior to consummation of a transaction.
President Trump on April 24 signed the Paycheck Protection Program and Health Care Enhancement Act, bipartisan legislation that provides $320 billion in additional funding for small businesses affected by the coronavirus pandemic. The Small Business Administration started accepting applications April 27, and already has approved more than 100,000 loans.
Federal banking regulators last week moved to allow banks to delay getting an appraisal on a property for as many as 120 days after a mortgage closes, and now, credit unions can do the same thing.
In order to “allow credit unions to expeditiously extend liquidity to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the National Emergency declared in connection with coronavirus disease,” the National Credit Union Administration will allow credit unions to postpone obtaining an appraisal until four months after a mortgage closes.
Mecklenburg County, the City of Charlotte and the six county towns, have agreed to follow the State of North Carolina’s Stay at Home Order starting April 30.
Mecklenburg County Manager Dena R. Diorio announced the agreement to the Board of County Commissioners at its public policy meeting Tuesday afternoon, one day before the county’s current order was set to expire.
