National Mortgage News - October 22, 2017

Cannabis businesses are legal in 29 states, but compliance questions on the federal level are keeping mortgage lenders from making loans to the industry's workers.

Legalizing the recreational use of marijuana has created jobs in Colorado, bringing people into the state and putting stress on its residential purchase and rental markets.

Most secondary market outlets, along with the non-qualified mortgage lenders, remain reluctant to lend to legal cannabis workers because of the source and nature of their compensation, but opportunities are beginning to emerge.

Fed economists are suggesting a new mortgage product that would allow home buyers to build equity faster and give banks incentive to profitably hold the loans in portfolio.

Fewer new homes will be finished and added to the housing stock as construction crews go to Texas and Florida to help repair or replace damaged properties.

Nominated last week as FHA commissioner, Brian Montgomery would lead an agency with a much better delinquency rate, but face new challenges.

Ginnie Mae will more closely examine liquidity at all issuers in response to complaints by the HUD inspector general that it would be vulnerable to defaults at nonbanks it does business with.

Automated data validations are integral to a seamless digital mortgage experience. But the extent of data exposed in the Equifax breach raises questions about the risk of fraudsters exploiting those technologies to further compromise consumer data.

Sen. Bob Corker has been a key voice in the housing finance reform debate. His departure at the end of next year puts a deadline of sorts on his efforts to unwind and replace Fannie Mae and Freddie Mac.

As head of Fannie Mae's single-family mortgage business, Andrew Bon Salle wants to ease the burden of loan-level price adjustments, streamline condo loan approvals and expand rep and warrant relief. But even he admits there are limits to his power.

As lenders embrace the automated processes and data integrations of digital mortgages, they must also rethink their approach to quality control.

Technology isn't a magic bullet for success, and just doing mortgages digitally doesn't change how the business fundamentally works.

Mortgage industry hiring and new job appointments for the week ending Oct. 13.

Return on investment from flipping houses has declined nationwide for three straight quarters. Here's a look at five cities that still offer robust returns and five markets worth avoiding.