In case you missed the story on the National Mortgage News website, here's a headline for you: Some firms have the ability to make $10,000 per loan on HARP 2.0 loans. A nice chunk of that profit estimate is tied to secondary market pricing. In short, Wall Street investors believe that HARP 2.0 loans have a very low likelihood of prepaying. Why? Answer: because the borrower is underwater or nearly so, but chances are he or she will keep paying, hence the secondary market premium. But another hitch is underwriting. We're told that some megabanks cranking out HARP loans are basically rubberstamping them – which means they're saving a ton of money on underwriting costs. As the old saying goes: make hay while the sun shines.
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House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
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A labor shortage is costing the market tens of thousands of new homes per year, and tariff uncertainty is adding thousands of dollars in expenses per unit.
July 3 -
The pace of revenue growth slowed toward the end of 2024, with the trend continuing into the first three months of this year, NAHB reported.
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Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
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The 10 basis point decline in the 30-year fixed mortgage was the most since March and the first time rates are below 6.7% since April, Freddie Mac said.
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The firm, now going by Fairway Home Mortgage, said the change is a representation of plans to create a "connected ecosystem."
July 3