In this Issue 

December 2021 Edition

     
 

Presidents Message

Legislative Update

State News & Events

Mortgage Bootcamp

Peer Chat

Online Event Calendar


Chapter News & Events

Milwaukee Chapter News + Events 

Madison Chapter News + Events

MBA Updates

Upcoming Educational Webinars

Other News

 
 



WMBA Members,

As you may know, we kicked off our 4th Annual Mortgage Bootcamp with the first session on December 8th. These sessions have proven extremely useful for anyone within the mortgage industry thanks to our seasoned presenters. As always, Bootcamp is an excellent opportunity to learn the basics, as well as advanced knowledge, of the mortgage loan cycle. Not to mention, Bootcamp provides a great opportunity to connect and work with others in the mortgage world. We highly encourage anyone within the industry to register so that they can improve upon their profession. Although Bootcamp has started, it is not too late to join! All of our sessions are recorded for anyone who registers late, with our next session on January 12th. If you are interested in learning more, please check out the Mortgage Bootcamp website here.

While this past year's events were a little unusual, I am happy to announce that the 2022 Best in Business Awards Ceremony will be taking place on April 7th. Instead of a combined Real Estate Finance Conference and Best in Business Awards, the two events will be taking place separately this year. Below you will find the nominations survey for the Best in Business Awards, and I encourage every person to submit their nominations. Stay tuned for more information on registration, sponsorship, and event details. 
 
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.
 
Again, please consider registering for the Mortgage Bootcamp, it is not too late! We also look forward to seeing you at the 8th Annual Best in Business Awards!
 
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 Best in Business Awards Nominations

We are happy to announce that the 2022 Best in Business Award nominations are now open!

The WMBA Best in Business Awards were created in 2015 to recognize the exceptional work of individual employees and the commitment they have to the mortgage lending industry. We will continue to recognize exceptional work in the Madison, Milwaukee, and Other markets in Wisconsin. 

Below you will find the link to the Award Nomination survey and the Lifetime Achievement survey. The surveys will contain the award categories, criteria for nominations, characteristics to consider, and important dates for the Best in Business Award Dinner. Nominations will close on January 24th, 2022. 


Award Nomination Survey 

Lifetime Achievement Survey


We hope to see you all at the Best in Business Award Dinner taking place on April 7th, 2022!
 
The Milwaukee Chapter Holiday Party


On December 16th, the Milwaukee Chapter held its annual holiday party for members and friends. From 4 pm - 8 pm at Dominic's Sports Bar, the Milwaukee Chapter enjoyed great food, great connections, and an ugly sweater contest. From the looks of these following photos, there was certainly some tough competition. 



 


Legislative Update - Buddy Julius

State news...


Complaint filed against Milwaukee DA over bail for Waukesha parade killer.

A group of Milwaukee County residents filed the complaint over what they say was an inadequate bail offer by the office of DA John Chisholm.  Darrell Brooks had been released on a $1,000 bond in a Milwaukee County case 11 days before his SUV plowed through the Waukesha Christmas parade, killing six and injuring 60.

Sixteen GOP lawmakers Wednesday sent a letter to Gov. Tony Evers asking him to remove Milwaukee County DA John Chisholm now that a complaint has been filed.


Neubauer elected Assembly Minority Leader; Haywood elected Assistant Minority Leader.

Racine Rep. Greta Neubauer was elected in a Monday caucus after current Minority Leader Gordon Hintz announced his intention to step down from the post.  Milwaukee Rep. Kalan Haywood was elected Assistant Minority Leader after Rep. Dianne Hesselbein announced she would step down to run for the State Senate.

Neubauer, 30, was elected to the Assembly in a January 2018 special election, while Haywood, 22, was elected in November of that year. Neubauer, is the youngest person to lead a legislative caucus in either house of the Wisconsin Legislature since 1943, according to the Legislative Reference Bureau.

Their elections today reflect a young caucus. Of the 38 Democrat Assembly members, 18 have joined the chamber since the start of 2018.


Committee approves pay raises for most state employees.

The Joint Committee on Employment Relations yesterday unanimously approved a general wage increase for most state employees of 2% next month and another 2% in January 2023. The committee also signed off on a provision that was included in the state budget to add $5 an hour to the pay of guards at prisons with a vacancy rate of more than 40%; currently, those at Waupun and Columbia would qualify for the extra pay.

The raises include District Attorneys and Assistant DAs, but the committee withheld the raise for Milwaukee County DA John Chisholm, citing their concerns about the bail offered to the Waukesha parade killer.


Tom Barrett officially resigns; Chevy Johnson becomes acting mayor of Milwaukee.

The Milwaukee Common Council will meet tomorrow morning to discuss the special election for mayor, expected in April.

Meanwhile, Barrett will take his oath as ambassador to Luxembourg at 9 a.m. tomorrow.


Foxconn receives $28.8 million in state tax credits for 2020.

This is the first time the company has qualified for state tax credits since signing the original incentive agreement with former Gov. Scott Walker in 2017.

WEDC CEO Missy Hughes said today the state certified 579 jobs the company had created at its Racine County facility, which was within the target range. But it fell short of the target capital investment of $268.6 million by nearly $2.5 million.

Had the company hit that target, it would've qualified for $29.1 million in credits.


Speaker critical of UW System for approving pay range increase for UW-Madison Chancellor.

UW Regents approved new salary ranges for top administration that would allow the Madison chancellor to be paid up to $900,190.  The old range for the position at the flagship campus was $493,240 to $739,860. The minimum starting salary under the new scale is $600,126.  It's an increase of more than 21%.

Speaker Robin Vos called the move out of touch and accused the university of purposefully limiting the pool of candidates artificially driving up the salary range.


State announces GAAP surplus for second straight year.

The 2020-21 fiscal year closed with a record high GAAP balance of nearly $1.2 billion.

The state closed 2019-20 with a positive balance of $6.7 million. It was the first time since the state began publishing its Annual Comprehensive Financial Report in 1990 the general fund didn't run a deficit under Generally Accepted Accounting Principles.


Evers announces $18 million in aid to help Wisconsinites pay their water bills.

The funds will go out through the Low Income Household Water Assistance Program to those who earn 60% of the state median income level or less and apply and qualify for the Wisconsin Home Energy Assistance Program.

Funds for the program come from the federal Consolidated Appropriations Act and the American Rescue Plan Act.


St. Croix Chippewa Indians to offer legal sports betting in its casinos.

Gov. Evers and St. Croix Tribal Chairman William Reynolds signed a gaming compact amendment Monday to allow "event wagering" on sports and other events. The change is subject to a 45-day review by the U.S. Department of Interior, which is expected to sign off on the amendment.

The St. Croix Chippewa are the second tribe, after NE Wisconsin's Oneida Tribe, to offer sports gambling.


Evers announces another round of aid totaling $50 million to 20,415 farmers around the state.

That brings total aid to $100 million to 35,664 farmers through the Farm Support Program, which is funded through federal COVID-19 aid.

The latest round of funds was distributed to more farmers than the first two rounds of funding, which distributed $50 million to more than 15,000 farmers. In the latest round of funding, farmers are receiving $2,490 each. Farmers in Grant County received $6.47 million through all three rounds, more than any other county.


Covid-19 news...


Cases stabilize and hospitalizations drop slightly.

The 7-day average for daily cases decreased to 3,417 from 3,804 a week ago.  The 7-day average for confirmed Covid-19 deaths increased to 28 from 25 a week ago.

The WI Hospital Association reports there are 1,633 people hospitalized with Covid-19.  Of those, 412 are in ICUs.  Both numbers are down slightly from a week ago.


First Wisconsin child under 10 dies from COVID-19.

People under the age of 20 have made up only 0.1% of Wisconsin’s nearly 9,800 deaths from COVID-19. Children between 5 and 11 first became eligible for the COVID-19 vaccine in early November.

There were 12 children hospitalized with COVID-19 at Children’s Wisconsin over the past week, according to its website.


Central WI nursing homes to take recovering COVID-19 patients as hospitals expect flood of new cases; navy staff deploying to Green Bay.

The Wausau initiative, the first of its kind in the state, will allow Aspirus and Marshfield Clinic health systems to discharge patients to two nursing homes operated by North Central Health Care. Those nursing homes, Mount View Care Center in Wausau and Pine Crest Nursing Home in Merrill, will admit up to four COVID-19 patients per day who are past the point of being contagious but aren't yet well enough to go home.

In Green Bay, the Federal Emergency Management Agency announced late Monday that it would send a team of 20 U.S. Navy medical providers to support staff at Bellin Hospital.


Milwaukee reaches deal with police union requiring COVID vaccinations.

The agreement comes as concern mounts over the omicron variant, and two months after the city reached a similar agreement with the union representing supervisors within the Milwaukee Police Department.

Officers will have until Jan. 31 to be vaccinated or wear masks at all times while on duty – except when eating or drinking at a safe social distance. Violating the requirements could lead to suspensions and, for repeated violations, possible termination, according to a city news release.


Dane County extends mask mandate.  Again.

The order, extended to Feb. 1st, requires masks for everyone ages two and older in most enclosed spaces open to the public whenever other people are present.  It includes an exception for when all people within an enclosed space are fully vaccinated, as well as for when people are eating or drinking, sleeping, swimming, getting dental treatment or communicating with someone who is deaf.

This is the second time Dane County has extended the mandate after saying before Thanksgiving it would not do so.  Dane County remains the only county in the state with a mask mandate.


Have a great holiday!


Ryan, Buddy & Cynthia
The Firm Consulting



Upcoming Statewide Events 

4th Annual WMBA Mortgage Bootcamp

The 2021-2022 Mortgage Bootcamp will be held virtually, with the final 2 sessions combined and held in person. 

-Bootcamp kicked off on December 8th with the first learning session.
-The next virtual session will be held on January 12th.

The WMBA Mortgage Boot Camp is designed for anyone who works in the mortgage industry! Our seasoned presenters will walk you through the mortgage loan cycle from start to finish to provide each participant with advanced knowledge of each step of the mortgage process. There are many opportunities to learn and interact with your peers throughout the sessions.
 
Any and all in the mortgage profession are welcome. This is not just for newbies!

For registration information and more details, check out the Bootcamp Website: Bootcamp Website

 Statewide Peer Chat

A new feature on the member website page is a discussion forum where you can add your comments to a posted topic or suggest another topic. There are currently three topics posted including: 

- eClosings - Remote Online Notarization
- Closings at your bank or company
- How are you effectively managing your remote staff?
 

You can find the Peer Chat at: https://wmba.wildapricot.org/MemberChat/


Online Event Calendar

Check out the new Online Event Calendar on the WMBA website that will include Statewide events, Board Meetings, Chapter Events and Educational Events. If you have an event to add, use the Suggest Event feature to give us the details to add to the calendar.

The calendar can be found at: http://wimba.org/Events
 





Milwaukee Chapter Events

 

 

Visit the Milwaukee Chapter Webpage for new events + chapter updates.




Madison Chapter Events

Madison Mortgage Banker's 2022 Kick-Off and Holiday Party 

On January 19th, the Madison Chapter will be holding its annual Kick-Off and Holiday Party. Join us at Breakwater in Monona from 4 pm - 7 pm for drinks, networking, and appetizers. The Madison Chapter will also be presenting its annual Distinguished Service Award to Mike Odden, as well as the introduction of the 2021-2022 Board of Directors.

We ask that you bring a non-perishable food item to donate to help those with food insecurities.

For more information on this event and registration, click here.

 

Save the Date!

Join us on March 17th for our 18th annual St. Paddy's Day Bowling Event. Make sure to check back here for more information!

Visit the Madison Chapter Webpage for new events + chapter updates.


MBA Update

MBA Opens Doors Foundation Welcomes Mark Jones, Rick Thornberry, and Dr. Lamia Soghier to its Board of Directors

WASHINGTON, D.C. (December 23, 2021) - The MBA Opens Doors Foundation (Opens Doors) today announced three new members to its Board of Directors: Mark Jones, MBA 2022 Vice Chairman and Chief Executive Officer and Co-Founder of Amerifirst Home Mortgage; Rick Thornberry, Chief Executive Officer of Radian Group Inc.; and Dr. Lamia Soghier, Medical Unit Director, Neonatal Intensive Care Unit, Children's National Medical System. 

"Mark, Rick, and Lamia bring a wealth of knowledge and expertise from their respective fields and a deep passion for giving back to their communities. I look forward to collaborating with them and developing new strategies that will increase our impact and broaden our ability to serve more families with critically ill or injured children," said Debra W. Still, CMB, President and CEO of Pulte Financial Services and Opens Doors Foundation Chair.  

Mark Jones co-founded Amerifirst Home Mortgage in 1983 and has overseen the company's growth from a single site in Kalamazoo, Michigan, to more than 80 locations and 900 employees across the country. Amerifirst is ranked first in USDA rural lending, third in FHA lending in Michigan, and manages a $6 billion servicing portfolio.   

Rick Thornberry is chief executive officer of Radian Group Inc. Radian is one of the largest private mortgage insurers of U.S. residential mortgages, and its real estate services segment is a leader in each of its industries. Thornberry has more than 30 years of experience in the financial services industry, as a leader of some of the most innovative mortgage industry businesses.   

Dr. Lamia Soghier, a Board-Certified neonatologist, is the Medical Unit Director, Neonatal Intensive Care Unit (NICU) and the NICU Quality and Safety Officer at Children's National Medical System. Dr. Soghier is also an associate professor of Pediatrics at The George Washington University School of Medicine and Health Sciences (GWSMHS). She is certified by the American Board of Pediatrics in both pediatrics and neonatology and has practiced pediatrics and neonatology in the U.S. and the Middle East. Dr. Soghier is an active clinician and researcher, deeply involved in promoting clinician education as a means of improving newborn's health.

"One of the many wonderful things about Opens Doors is the dedication and passion our board members have for our mission and for reaching populations in need of housing assistance. Mark, Rick, and Lamia embody the true spirit of an Opens Doors champion," said MBA Opens Doors Foundation President Deborah Dubois.

The MBA Opens Doors Foundation, through its Home Grant Program, provides relief in a time of personal crisis. The Home Grant Program has become a critical part of a family's support structure, especially when a parent or guardian must take unpaid leave to be with a child. Grants of up to $2,500 are made monthly to families in need of mortgage or rental payment assistance. The Foundation has provided more than $15 million in mortgage and rental payment assistance to nearly 10,000 families since its inception in 2011.  

For more information on Opens Doors' mission, please click here.


Mortgage Applications Decrease in Latest MBA Weekly Survey

WASHINGTON, D.C. (December 22, 2021) - Mortgage applications decreased 0.6 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending December 17, 2021. 

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. The Refinance Index increased 2 percent from the previous week and was 42 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 6 percent compared with the previous week and was 9 percent lower than the same week one year ago.  

"Mortgage applications fell last week, driven by a 3 percent decline in purchase applications. Both conventional and government purchase applications were down, while the average purchase loan increased for the second straight week to $416,200 - the second highest amount ever. The elevated loan size is an indication that activity is more on the higher end of the market," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Home-price appreciation growth remains faster than historical averages and inventory, particularly for starter homes, continues to trail strong demand."

Added Kan, "The 30-year fixed rate decreased to 3.27 percent - its lowest level in four weeks - and helped spur an increase in refinances across all loan types. FHA and VA refinances jumped 4 percent and 12 percent, respectively."

The refinance share of mortgage activity increased to 65.2 percent of total applications from 63.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 3.4 percent of total applications.  

The FHA share of total applications remained unchanged to 9.6 percent from 9.6 percent the week prior. The VA share of total applications increased to 11.5 percent from 10.6 percent the week prior. The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior.  

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.27 percent from 3.30 percent, with points increasing to 0.41 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.31 percent from 3.32 percent, with points decreasing to 0.27 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.34 percent from 3.37 percent, with points increasing to 0.36 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.  

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.59 percent from 2.58 percent, with points decreasing to 0.32 from 0.34 (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 2.79 percent from 2.75 percent, with points remaining unchanged at 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week. 

Please Note:

MBA's office will be closed Friday, December 24, 2021, and will reopen on Monday, January 3, 2022. Due to the holiday, the results for the weeks ending December 24, 2021, and December 31, 2021, will be released on January 5, 2022.   

If you would like to purchase a subscription of MBA's Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact mbaresearch@mba.org or click here.  

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.

For more information, please contact Adam DeSanctis at 202-557-2727


MBA Loan Monitoring Survey: Share of Mortgage Loans in Forbearance Decreases to 1.67 Percent

WASHINGTON, D.C. (December 20, 2021) - The Mortgage Bankers Association's (MBA) new monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 39 basis points from 2.06% of servicers' portfolio volume in the prior month to 1.67% as of November 30, 2021. According to MBA's estimate, 835,000 homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 16 basis points to 0.76%. Ginnie Mae loans in forbearance decreased 42 basis points to 2.10%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 106 basis points to 3.94%.  

"The share of loans in forbearance in November declined - albeit at a slower pace than October - as borrowers continued to near the expiration of their forbearance plans and moved into permanent loan workout solutions," said Marina Walsh, CMB, MBA's Vice President of Industry Analysis.  

Total loans serviced that were current (not delinquent or in foreclosure) as a percent of servicing portfolio volume (#) rose to 94.58% in November from 94.32% in October (on a non-seasonally adjusted basis). Total completed loan workouts from 2020 and onward (repayment plans, loan deferrals/partial claims, loan modifications) that were current as a percent of total completed workouts declined to 83.69% last month from 84.04% in October.  

"More borrowers were current on their mortgage payments in November compared to October. This coincides with continued improvement in the labor market - faster wage growth and the unemployment rate dropping to 4.2 percent," said Walsh. "While there was some deterioration in the performance of borrowers in post-forbearance workouts, four out of five overall remained current through November."      

 

Key findings of MBA's Loan Monitoring Survey - November 1 to November 30, 2021

  • Total loans in forbearance decreased by 39 basis points in November relative to October: from 2.06% to 1.67%.
    • By investor type, the share of Ginnie Mae loans in forbearance decreased relative to the prior month: from 2.52% to 2.10%.
    • The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior month: from 0.92% to 0.76%.
    • The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior month: from 5.00% to 3.94%.
  • Loans in forbearance as a share of servicing portfolio volume (#) as of November 30, 2021:
    • Total: 1.67% (previous month: 2.06%)
    • Independent Mortgage Banks (IMBs): 1.94% (previous month: 2.28%)
    • Depositories: 1.52% (previous month: 2.02%)
  • By stage, 18.3% of total loans in forbearance are in the initial forbearance plan stage, while 68.4% are in a forbearance extension. The remaining 13.3% are forbearance re-entries, including re-entries with extensions.
  • Of the cumulative forbearance exits for the period from June 1, 2020, through November 30, 2021, at the time of forbearance exit:
    • 29.1% resulted in a loan deferral/partial claim.
    • 19.9% represented borrowers who continued to make their monthly payments during their forbearance period.
    • 16.8% represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitigation plan in place yet.
    • 14.1% resulted in a loan modification or trial loan modification.
    • 11.8% resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance.
    • 6.9% resulted in loans paid off through either a refinance or by selling the home.
    • The remaining 1.4% resulted in repayment plans, short sales, deed-in-lieus or other reasons.
  • The five states with the highest share of loans that were current as a percent of servicing portfolio: Idaho, Washington, Utah, Colorado, and Oregon.
  • The five states with the lowest share of loans that were current as a percent of servicing portfolio: Louisiana, Mississippi, New York, West Virginia, and Oklahoma.

 

MBA's new monthly Loan Monitoring Survey (replaces MBA's Weekly Forbearance and Call Volume Survey) covers the period from November 1 through November 30, 2021, and represents 73% of the first-mortgage servicing market (36.5 million loans). To subscribe to the full report, go to www.mba.org/loanmonitoring.

NOTE: The next publication of the Monthly Loan Monitoring Survey (LMS) will be Tuesday, January 18, 2022, at 4:00 p.m. ET. For more detailed information on performance metrics, including seasonally adjusted delinquency rates by stage (30 days, 60 days, 90+ days), please refer to MBA's Quarterly National Delinquency Survey at www.mba.org/nds

For more information, please contact Adam DeSanctis at 202-557-2727


Every Major Investor Group Increased Holdings of Commercial/Multifamily Mortgage Debt in the Third Quarter of 2021

WASHINGTON, D.C. (December 16, 2021) - The level of commercial/multifamily mortgage debt outstanding increased by $64.8 billion (1.6 percent) in the third quarter of 2021, according to the Mortgage Bankers Association's (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

Total commercial/multifamily debt outstanding rose to $4.05 trillion at the end of the third quarter. Multifamily mortgage debt alone increased $26.6 billion (1.5 percent) to $1.8 trillion from the second quarter of 2021.  

"Every major investor group increased their holdings of commercial and multifamily mortgages during the third quarter, as many property types have healed considerably since the shutdowns at the onset of the COVID-19 pandemic in early 2020," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Strong interest from both borrowers and lenders is likely to continue to drive increases in commercial and multifamily mortgage debt in 2022."  

The four largest investor groups are: banks and thrifts; federal agency and government sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS); life insurance companies; and commercial mortgage-backed securities (CMBS), collateralized debt obligation (CDO) and other asset backed securities (ABS) issues.  

Commercial banks continue to hold the largest share (38 percent) of commercial/multifamily mortgages at $1.5 trillion. Agency and GSE portfolios and MBS are the second largest holders of commercial/multifamily mortgages (22 percent) at $885 billion. Life insurance companies hold $609 billion (15 percent), and CMBS, CDO and other ABS issues hold $564 billion (14 percent). Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the report in the "CMBS, CDO and other ABS" category.  

MBA's analysis summarizes the holdings of loans or, if the loans are securitized, the form of the security. For example, many life insurance companies invest both in whole loans for which they hold the mortgage note (and which appear in this data under Life Insurance Companies) and in CMBS, CDOs and other ABS for which the security issuers and trustees hold the note (and which appear here under CMBS, CDO and other ABS issues).  

MULTIFAMILY MORTGAGE DEBT OUTSTANDING

Looking solely at multifamily mortgages in the third quarter of 2021, agency and GSE portfolios and MBS hold the largest share of total multifamily debt outstanding at $885 billion (50 percent), followed by banks and thrifts with $496 billion (28 percent), life insurance companies with $177 billion (10 percent), state and local government with $106 billion (6 percent), and CMBS, CDO and other ABS issues holding $55 billion (3 percent). Nonfarm non-corporate businesses hold $20 billion (1 percent).  

CHANGES IN COMMERCIAL/MULTIFAMILY MORTGAGE DEBT OUTSTANDING  

In the third quarter of 2021, commercial banks saw the largest gains in dollar terms in their holdings of commercial/multifamily mortgage debt - an increase of $20.9 billion, (1.4 percent). Agency an GSE portfolios and MBS increased their holdings by $14.1 billion (1.6 percent), life insurance companies increased their holdings by $12.9 billion (2.2 percent), and REITs increased their holdings by $7.8 billion (7.7 percent).  

In percentage terms, REITs saw the largest increase - 7.7 percent - in their holdings of commercial/multifamily mortgages. Conversely, private pension funds saw their holdings decrease 4.9 percent.  

CHANGES IN MULTIFAMILY MORTGAGE DEBT OUTSTANDING  

The $26.6 billion increase in multifamily mortgage debt outstanding from the second quarter of 2021 represents a gain of 1.5 percent. In dollar terms, agency and GSE portfolios and MBS saw the largest gain - $14.1 billion (1.6 percent) - in their holdings of multifamily mortgage debt. Commercial banks increased their holdings by $5.6 billion (1.1 percent), and life insurance companies increased by $3.8 billion (2.2 percent).  

REITs saw the largest percentage increase in their holdings of multifamily mortgage debt, up $649 million (9.5 percent). Private pension funds saw the largest decline in their holdings of multifamily mortgage debt, down $65 million (14.3 percent).  

MBA's complete Commercial/Multifamily Mortgage Debt Outstanding report can be downloaded here.  

MBA's analysis is based on data from the Federal Reserve Board's Financial Accounts of the United States, the Federal Deposit Insurance Corporation's Quarterly Banking Profile and data from Wells Fargo Securities. More information on this data series is contained in Appendix A.    

For more information, please contact Adam DeSanctis at 202-557-2727


Upcoming Educational Webinars


Click here to view the calendar to register for upcoming webinars
 


Other News...

The New American Homebuyer

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.

Read More...

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