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In this Issue |
June 2022 Edition |
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Legislative Update
Other News |
![]() ![]() WMBA Members, Thank you to everyone that joined us on June 8th as we installed the newest Board of Directors of the WMBA. A big thank you to Fairway Independent Mortgage Corp. for allowing us to hold this event at their headquarters in Madison. And a special thank you to Pete Stebbins of Fairway for his continued dedication to the WMBA and working to keep this organization moving forward. It has been an honor and a privilege to serve as the President of the WMBA. The time I have spent with this organization is time that I will never forget. I know that this organization will be in great hands with our newest Directors and your 2022-2023 WMBA President, Chad Laipple of U.S. Bank Home Mortgage. I am proud to announce that our Annual Golf Outing will be taking place this year on September 8th at the Grand Geneva Resort and Spa. Registration and sponsorship opportunities are open! This event includes an 18-hole scramble, lunch, prizes, networking, and dinner. Please consider registering to enjoy a great day of golf and supporting our wonderful organization. Regstration and sponsorship details can be at our 2022 Golf Outing Website. Thank you again to everyone who has renewed their membership for another year with WMBA. The continued support of our members is what makes our organization so great. Our administrators are busily working behind the scenes to process payments and update your organization’s member listings in the database. Questions about the renewal process, including dues and database info, can be directed to our association administrators at wmba@morgandata.com. We look forward to seeing you at the Annual Golf Outing! Thank you, Joe Doyle ![]() Joe Doyle, CMB, AMP WMBA President 2021-2022 Account Manager, Wisconsin & Northern IL Arch Mortgage Insurance Company jdoyle@archmi.com | (414) 526-9510 2022-2023 Board of Directors Congratulations to all of our newest Directors!President - Chad Laipple, U.S. Bank Home Mortgage President Elect - Carl Pietraszewski, U.S. Bank Home Mortgage Treasurer - Amy Gile-Enge, Capitol Bank Past President - Rob Helvey, Waukesha State Bank Newly Elected Board of Directors - Steven Luebke, North Shore Bank Kimberly Klaetsch, National Exchange Bank & Trust Don Lickel, Landmark Credit Union Mike Hall, Arch MI Photos:
State news...
2022-2023 Annual Golf Outing
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Location: | Pleasant View Golf Course 1322 N Pleasant View Road Middleton,WI 53562 Course Website 608-831-6666 |
Date: | Thursday, June 2, 2022 |
Agenda: | 9:15 - Check in for teams Please arrive half an hour prior to check-in 10:00 - First group starts |
Registration Fee: | $125.00 per individual golfer $500.00 per foursome Registration includes: 1 round of golf, a cart, boxed lunch, one raffle ticket for prizes, and networking afterwards. Registration Deadline: May 27th |
Hole Sponsor: |
$150.00 with signage and opportunity to staff hole. |
WASHINGTON, D.C. (April 28, 2022) - Homebuyer affordability declined in March, with the national median payment applied for by applicants rising 5.0 percent to $1,736 from $1,653 in February. This is according to the Mortgage Bankers Association's (MBA) new Purchase Applications Payment Index (PAPI), which measures how new monthly mortgage payments vary across time – relative to income – using data from MBA’s Weekly Applications Survey (WAS).
“The start of the spring homebuying season is off to a mixed start. The healthy labor market and robust wage gains fueled demand throughout the country in March, but rapid home-price growth and the 42-basis-point surge in mortgage rates last month slowed purchase application activity. A typical borrower’s principal and interest payment was $387 more than in March 2021,” said Edward Seiler, MBA's Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “Swift price-appreciation, sky-high inflation, low inventory, and mortgage rates now two percentage points higher than last year are all headwinds for the housing market in the coming months – especially for first-time buyers.”
Added Seiler, “MBA’s updated forecast calls for an annual decline in existing sales, higher home prices and mortgage rates, and a smaller, but solid 4 percent gain in purchase origination volume.”
An increase in MBA’s PAPI – indicative of declining borrower affordability conditions – means that the mortgage payment to income ratio (PIR) is higher due to increasing application loan amounts, rising mortgage rates, or a decrease in earnings. A decrease in the PAPI – indicative of improving borrower affordability conditions – occurs when loan application amounts decrease, mortgage rates decrease, or earnings increase.
The national PAPI (Figure 1) increased 5.0 percent to 150.9 in March from 143.7 in February, meaning payments on new mortgages take up a larger share of a typical person’s income. Compared to March 2021 (122.9), the index jumped 22.8 percent. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment increased 3.2 percent to $1,129 from $1,094 in February.
MBA’s national mortgage payment to rent ratio (MPRR) increased to 1.38 in March (highest since 2010) from 1.32 in February, 1.22 in January, and 1.15 in December 2021, meaning mortgage payments for home purchases have increased relative to rents. The national median asking rent in first-quarter 2022 increased 4.0 percent on a quarterly basis to $1,255. The 25th percentile mortgage application payment to median asking rent ratio was 0.90 in March, up from 0.87 in February and 0.74 in December 2021.
Additional Key Findings of MBA's Purchase Applications Payment Index (PAPI) – March 2022
About MBA’s Purchase Applications Payment Index
The Mortgage Bankers Association’s Purchase Applications Payment Index (PAPI) measures how new mortgage payments vary across time relative to income. Higher index values indicate that the mortgage payment to income ratio (PIR) is higher than in a month where the index is lower. Contrary to other affordability indexes that make multiple assumptions about mortgage underwriting criteria to estimate mortgage payment level, PAPI directly uses MBA’s Weekly Applications Survey (WAS) data to calculate mortgage payments.
PAPI uses usual weekly earnings data from the U.S. Bureau of Labor Statistics’ Current Population Survey (CPS). Usual weekly earnings represent full-time wage and salary earnings before taxes and other deductions and include any overtime pay, commissions, or tips usually received. Note that data are not seasonally adjusted.
The rent data series calculated for MBA’s national mortgage payment to rent ratio (MPRR) comes from the U.S. Census Bureau’s Housing Vacancies and Homeownership (HVS) survey’s median asking rent. The HVS data is quarterly, and as such, the mortgage payment to rent ratio will be updated quarterly.
For additional information on MBA’s Purchase Applications Payment Index, click here.
For more information, please contact Adam DeSanctis at 202-557-2727
WASHINGTON, D.C. (April 27, 2022) -
Mortgage applications decreased 8.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 22, 2022.
The Market Composite Index, a measure of mortgage loan application volume, decreased 8.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7 percent compared with the previous week. The Refinance Index decreased 9 percent from the previous week and was 71 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 8 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent compared with the previous week and was 17 percent lower than the same week one year ago.
“With mortgage rates increasing last week to the highest level since 2009, applications continued to decline. Overall application activity fell to the lowest level since 2018, with both purchase and refinance applications posting declines. Refinance applications were 70 percent below the same week a year ago, when the 30-year fixed rate was in the 3-percent range,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The drop in purchase applications was evident across all loan types. Prospective homebuyers have pulled back this spring, as they continue to face limited options of homes for sale along with higher costs from increasing mortgage rates and prices. The recent decrease in purchase applications is an indication of potential weakness in home sales in the coming months.”
Added Kan, “In a period of high home-price growth and rapidly increasing mortgage rates, borrowers continued to mitigate higher monthly payments by applying for ARM loans. The ARM share of applications last week was over 9 percent by loan count and 17 percent based on dollar volume. At 9 percent, the ARM share was double what it was three months ago, which also coincides with the 1.5 percentage point increase in the 30-year fixed rate.”
The refinance share of mortgage activity decreased to 35.0 percent of total applications from 35.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 9.3 percent of total applications.
The FHA share of total applications increased to 10.6 percent from 9.9 percent the week prior. The VA share of total applications increased to 10.2 percent from 10.1 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.37 percent from 5.20 percent, with points increasing to 0.67 from 0.66 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 4.89 percent from 4.76 percent, with points increasing to 0.47 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 5.29 percent from 5.11 percent, with points decreasing to 0.88 from 0.90 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.68 percent from 4.44 percent, with points increasing to 0.80 from 0.77 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 4.28 percent from 4.09 percent, with points increasing to 0.74 from 0.56 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
For more information, please contact Adam DeSanctis at 202-557-2727
WASHINGTON, D.C. (April 26, 2022) -
The Mortgage Bankers Association (MBA) has presented its annual Burton C. Wood Legislative Service Award to Owen Lee, CEO, Success Mortgage Partners (SMP). The award is given annually to an MBA member employee in recognition of their sustained superior service to the association and the real estate finance industry. Lee was presented the award at MBA's 2022 National Advocacy Conference (NAC).
“It is my honor to recognize Owen Lee, one of MBA’s biggest supporters and a tireless advocate for the real estate finance industry, as the 2022 recipient of the Burton C. Wood Legislative Service Award,” said Kristy W. Fercho, 2022 MBA Chair, Executive Vice President and Head of Home Lending at Wells Fargo. “Owen’s leadership over the years – and especially as a valued member of MBA’s Tax Task Force – has been instrumental in helping to advance MBA’s top legislative priorities.”
Lee’s work on MBA’s Tax Task Force helped frame MBA’s priorities on recent legislative tax proposals and identified issues that could have been detrimental to the industry, business operations, and consumers. Additionally, his relationships with national, state, and local elected officials helps to ensure the industry’s priorities and concerns are heard.
Lee is an avid Mortgage Action Alliance (MAA) member and a diamond-level MORPAC donor. This past year he executed a highly successful MORPAC company campaign (his firm’s first), leading an “Advocacy Townhall” with his employees to explain the importance of their engagement. Through his involvement as a member of MBA’s Board of Directors and the IMB Executive Council, Lee has repeatedly encouraged his peers to get involved with MBA’s advocacy programs.
The award is named after MBA’s late Legislative Counsel Burton C. Wood, who devoted more than 30 years of service to MBA's advocacy efforts. Wood was the first recipient of the award in 1990, and his lobbying skills gained the respect and attention of both Republicans and Democrats alike. He passed away in 2010.
WASHINGTON, D.C. (April 22, 2022) -
MISMO®, the real estate finance industry's standards organization, announced today that it is seeking public comment on MISMO Engineering Guideline (MEG) 27 which provides guidance to help determine if a new version of the MISMO Reference Model is compatible with a previously-implemented solution. The 60-day public comment period for these guidelines runs through June 22, 2022.
MISMO MEGs are created to ensure that MISMO work products adhere to all applicable technology standards, are produced in a consistent fashion, and meet the needs of the mortgage industry.
When a new version of the MISMO Reference Model is released, organizations need to be able to determine if adopting it could impact solutions designed for a prior version. MEG 27 provides a quick way to begin to assess the potential impact on an organization and offers necessary guidance to address any incompatibility challenges that may exist in implementing the latest version.
This public comment period allows those who participated on the proposal at least 60 days' notice prior to final release to review and disclose any applicable Patent Rights (as defined by MISMO's 2018 Intellectual Property Rights Policy).
MISMO requests that any non-participant organization that may have any patent or patent applications, or other intellectual property rights that might be infringed upon by an organization that uses or is compliant with these proposed MISMO products, to disclose them at this time in writing. All comments and disclosures should be directed to info@mismo.org.
MISMO’s work to solve key business challenges is made possible due to lender support of the MISMO Innovation Investment Fee. For information on MISMO and how to join go here.
For more information, please contact Tara Dunion at 202-557-2849
Even with the massive gains of the last year, mortgage industry experts say that any plateau for the residential real estate market is nowhere in sight.
Due to a persistent short supply of homes, low interest rates, and readily available credit, single-family homes are commanding multiple offers replete with various sweeteners, such as inspection waivers, offers to cover any appraisal shortfall, etc.
However, homeowners who get too greedy and list their homes at too high a price can still run up against issues of appraisals coming in too low and buyers recognizing the house is overpriced to start with. That’s according to Brian Koss, EVP, Mortgage Network.
Housing affordability declined in May (the latest figures available as of this writing) compared to a year ago, according to National Association of Realtors (NAR) Housing Affordability Index. Median family incomes rose modestly by 1.2%, while the monthly mortgage payment increased 20%. The effective 30-year fixed mortgage rate was 3.01% this May compared to 3.29% one year ago, but the median existing home sales price rose 24.4% year over year.
Compared to the prior month, affordability also worsened as the monthly mortgage payment rose by 1.7% while the median family income declined by 1%.
With all these factors in play, what does the face of the modern American homebuyer look like in 2021? MReport spoke to the experts for insights into the qualities, priorities, and needs of those on the road to the American Dream.
The State of the Market
The adage about the critical importance of location still applies to this current market, said Yvette Clermont, Branch Manager, Inlanta Mortgage. Where homes are available, buyers want to be in good school districts, near shopping, and so forth.
“It’s a little bit of getting whatever you can get your hands on right now,” Clermont said.
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