Adverse market fee backlash, Wells Fargo lawsuit, soaring mortgage rates and the rest of the week's top news
August 14, 2020 5:57 PM
Andrew Harrer/Bloomberg
Adverse market fee draws adverse reviews
The fee announced by Freddie Mac and Fannie Mae for borrowers to refinance their mortgages received major criticisms from industry representatives and analysts who said it will curb business. (Full story here .)
Mark Kauzlarich/Bloomberg
Former employee hits Wells Fargo with sex discrimination lawsuit
Wells Fargo faces a gender discrimination lawsuit filed by an employee alleging unlawful termination and violation of the Equal Pay Act. (Full story here .)
Mortgage rates shoot up, outlook pessimistic
Amid volatile markets, interest rates rose 8 basis points from the week prior's all-time low. This development could be a sign of more to come. (Full story here .)
Serious delinquencies may grow exponentially in 2021
Without more financial support from the government, CoreLogic predicts the rate of seriously delinquent mortgages will quadruple by the end of next year. President Trump's last executive order was deemed unconstitutional by Congress and the two parties must agree before further relief is granted. (Full story here .)
A Trump reelection would bring big implications for banks
With added job security behind another four years, Trump-appointed regulators would magnify a pro-business agenda and take further deregulatory measures. Fannie and Freddie would stay on course for ending conservatorship and CFPB could roll back more Obama-era underwriting requirements. (Full story here .)
Mortgage forbearances drop ... again
For the eighth week in a row, coronavirus-related forbearances continue to fall. The latest rates from the Mortgage Bankers Association show the first time since April that every segment of the marketplace – overall, banks, and nondepositories – all went below 8%. (Full story here .)
Loan applications rise as interest rates tumble
With interest rates at record lows mortgage application volume jumped for the first time after two weeks of declines. While a 6.2% increase in a week is big, an annual surge of 37.1% speaks for itself (Full story here .)
Does trouble lie ahead for commercial mortgages?
Delinquencies in the commercial sector lay low for now but troubling signs point to a possible reckoning on the horizon. While the Paycheck Protection Program provided aid, hotels, retail, and hospitality have already seen spikes in delinquency rates. (Full story here .)
Bidding wars grow 5x in July
With housing inventory squeezed tight, offers poured in during July. Over half of all home listings received multiple bids, with some markets peaking at 75%, according to Redfin. (Full story here .)
Calling it like he sees it
In an opinion piece from Christopher Whalen, he says the new refinancing fee lacks basic consensus and "the Federal Housing Finance Agency is a fundamentally conflicted agency." He even likens the fee to a scene from "The Godfather" outlining extortion. (Full story here .)
