Daily Dose

In a new survey, more homebuyers cited that their reasoning for buying a home was personal choice—build equity, move to a good school district, have a larger yard or living area, secure a vacation home—than out of necessity. Twenty-six percent said sudden or unexpected changes to their life, such as pregnancy, marriage, divorce, a death in the family, financial hardship, or health reasons necessitated their purchasing of a phone, as opposed to the former 31 percent. Unsurprisingly, those who wanted to buy were more likely to secure a FHA loan to pay for their home, while those who felt like they needed to buy took a 30-year mortgage or paid cash.

As millennials secure stable post-recession jobs, they are flocking to the Midwest—particularly Minnesota, Wisconsin, and Indiana—to purchase homes. Low inventory and high demand have created a seller’s market in almost every region across the three states. Sellers have even reported getting multiple offers without having to negotiate.

A new study by Redfin shows that affordability for middle-class homebuyers has dropped noticeably in the past four years. African-American and Hispanic household earning median salaries are being hit especially hard. Last year, minority buyers could afford fewer than five percent of homes for sale in several markets.

Fannie Mae's Book of Business increased at a compound annualized rate of 1.3 percent in April. Fannie Mae's Gross Mortgage Portfolio increased temporarily in April, at a compound annualized rate of 52.5 percent. The Conventional Single-Family Serious Delinquency Rate decreased five basis points to 1.07 percent

A recent survey of mortgage professionals shows that a majority are ready for regulation changes to the Home Mortgage Disclosure Act. Most of those polled believe requirements for collecting, analyzing and reporting data, coupled with a lack of resources to manage the mortgage data, contributes to the rising cost of loans. Nearly a quarter share President Trump’s sentiment that policy changes to the mortgage industry would be beneficial to the lending market.

The mortgage industry has taken a big step toward diversification thanks to one its largest professional groups. On Wednesday, the Federation of REO Certified Experts—or FORCE, for short—announced the launch of its Diversity Council, a team dedicated to embracing and encouraging diversity in the REO, default servicing, and mortgage industries at large. The council will consist of six unique committees: Latino Professionals in FORCE, Asian Professionals in FORCE, Black Professionals in FORCE, Women Professionals in FORCE, LGBT Professionals in FORCE, and Veteran Professionals in FORCE.

Year-over-year pending home sales indexes are down across the country in April for a second straight month due to a lack of inventory and an increase in prices. However, home sales activity still remains historically high, even during the downturn. Experts believe the market is still on track to post end-of-the-year increases, especially once real-estate investors decide to unload their rental properties.

Reverse mortgages are one of the most-complained about financial products for older Americans, with a new CFPB report showing servicing issues, communication problems, and difficulty changing loan terms as a common concern for consumers 62 and older. This group also reports issues with financial scams, confusion around deferred-interest credit cards, and being charged for unauthorized add-on products and services. Aging Americans are at a higher risk for financial exploitation, according to CFPB Director Richard Cordray.

New data shows defects on loan applications are up across the country—both for the month and over the year. The culprit? Riskier lending practices on both purchase loans and refinances. North Dakota, Montana, and Vermont had the highest defect frequency at the state level, while McAllen, Texas, and Knoxville, Tennessee, took the cake in terms of metro markets.

In a recent radio interview, HUD Secretary Ben Carson said that with “the right mindset,” many Americans using HUD’s low-income housing subsidies could overcome their struggles. Carson discussed topics of poverty, housing, and the government’s role in both, just days after President Trump’s 2018 budget blueprint was released. The plan cuts $6.2 billion from the HUD budget, ends the Community Development Block Grant program, and slashes funding for the department’s rental assistance program.