Inside the Beltway

The economic outlook for 2019 and 2020 published by the American Bankers Association’s Economic Advisory Committee is less optimistic than it has been in recent years but still projects growth – just not as much in light of expected shifts in the U.S. policy and the global economy. 

The committee anticipates higher mortgage interest rates, which will impact the demand for housing.

Find out more details about the group’s predictions.

Following a multi-week lull to end 2018, the mortgage market saw a dramatic uptick in applications, per the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 4, 2019.

Seasonally-adjusted data revealed a 23.5 percent increase in total application volume compared with the previous week.

Read on to learn more performance details about specific mortgage types.

Fears of complications resulting from the partial government shutdown could be playing a part in the recent decline in mortgage applications, particularly those insured by the Federal Housing Administration (FHA), according to Mortgage Bankers Associate (MBA) Vice President of Economic and Industry Forecasting Joel Kan.

Because conventional loan applications fell at a rate exceeding that of other loan types, certain loan segments recorded an increase in mortgage activity share despite also seeing declines in application volume.

Read on to find out more details.

Many of the Federal Housing Administration’s (FHA) functions will be affected as a result of the partial federal government shutdown, although the agency has a plan for maintaining essential functions. The FHA released a breakdown of what functions its Office of Single Family Housing and its mortgage insurance program will be impacted.  

The FHA noted that functions that remain operational will entail longer wait times because of staffing limitations.

Read on to learn more details from the agency. 

The Office of the Comptroller of the Currency’s (OCC) Mortgage Metrics Report for the third quarter of 2018 showed year-over-year improvement among first-lien residential mortgages, based on data collected on loans owned by seven national banks representing 32 percent of all outstanding residential mortgages nationwide.

The report indicates growth in market share for first-lien residential mortgages and a drop in foreclosures and delinquencies.

Read on to learn more details.

Open banking has become a prominent strategic initiative among the majority of large banks when it comes to their commercial clients. Research conducted by Accenture found that banks believe doing so is essential to implementing effective digital transformation programs intended to help them achieve double-digit revenue growth.

Learn more details about the findings included in the report.

A substantial drop in 30-year fixed mortgage rates for conventional loans fueled an equally noteworthy uptick in mortgage applications as Thanksgiving approached, but flattened out in the week that followed. Interest rates for other loan types remained stable or increased slightly during the same timeframe.

Freddie Mac’s Primary Mortgage Market Survey showed a flattening of rates among all mortgage types it holds in the week following the holiday.

Find out more insights revealed by the industry research.

With two years to spare before the statutory deadline, the Federal Deposit Insurance Corporation (FDIC) reported that its Deposit Insurance Fund (DIF) is above the 1.35 percent reserve ratio mandated by the Dodd-Frank Act.

The fact that it hit that mark ahead of the Sept. 30, 2020, statutory deadline means an end to quarterly surcharges for large banks and puts the mark just shy of statutory requirements for returning millions of dollars to community banks.

Find out more details about what the current status of the reserve ratio means for banks.

The mortgage industry saw a 4 percent drop in applications entering the month of November as rates ticked up to a new eight-year high, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 2.

Average interest on a 30-year fixed-rate mortgage hit the highest mark since April 2010.

Read on to learn more information about changes in applications and interest rates.

The Federal Trade Commission (FTC) recently voted 5-0 to propose a rule that would require national consumer reporting agencies to offer free electronic credit monitoring services to active duty military members, implementing a provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

The rule would require consumer reporting agencies to notify active duty military members within 24 hours of any “material” additions or modifications to their credit files.

Read on to learn more details.