Daily Dose

Fannie Mae’s first quarter net income was down sharply from that in Q4. Gains in risk management derivatives were overshadowed by smaller increases in interest rates and less income from fees. Lower refinancing activity also contributed to the smaller bottom line.

The Consumer Financial Protection Bureau (CFPB) is planning to assess the effectiveness of the Real Estate Settlement Procedures Act (RESPA) mortgage servicing rule. The rule, introduced in January 2013 and which took effect in January 2014, was designed to assist consumers who were behind on mortgage payments. Currently, the Bureau is seeking comment from consumers, consumer advocates, housing counselors, mortgage loan servicers, industry representatives, and the general public regarding the rule, and will issue a report of their assessment by January 2019.

Americans by and large are confident in the housing market. But a new survey by ValueInsured shows some fissures in the foundation. Slowly and quietly, more Americans are having their doubts about buying a home this year.

New data shows that August is the best time for homebuyers. According to recent analysis, housing inventory is up significantly by the end of summer, causing many sellers to reduce their listing price. In fact, buyers who wait until late summer may actually pay less than if they’d bought during other times of the year.

Mortgage rates remained fairly steady this week, even as the Financial Open Market Committee met to discuss potential hikes in the federal funds rate. These low rates may not stay for long, however. Reports found that the rate for a 30-year fixed-rate mortgage has stayed flat, but experts noted that the Fed's "half-full" economic outlook may mean rates will rise again at some point this year.

Following a contentious hearing earlier this week, the Financial Services Committee voted to move forward with the Financial CHOICE Act to a full House vote. The Financial CHOICE Act "ends taxpayer-funded bank bailouts, and unleashes America’s economic potential," said FInanical Services Committee Chairman Jeb Hensarling.

Mortgage applications decreased from a week earlier, according to a recent survey. This is a substantial difference compared to last week, when applications rose 2.7 percent. Refinances had increased 7 percent that week, as well, but fell 5 percent this week.

Despite sluggish economic growth in Q1 and the widely held assumption that the Fed would raise rates at least two more times this year, the Federal Open Market Committee opted to keep the federal funds rate as is at its May meeting. Raised in March, the rate currently sits at 1 percent. The Committee cited job gains and lower unemployment as factors in its decision.

The Consumer Financial Protection Bureau (CFPB) has denied Ocwen Financial Corporations’s attempt to expedite a court ruling on the constitutionality of the Bureau. The CFPB said that the mortgage servicer shouldn’t get special treatment in the case, alleging it failed “every stage of the mortgage servicing process.” The CFPB attempted to block Ocwen’s expediting attempt by telling a Florida federal court to deny Ocwen’s attempt at fast-tracking its constitutional challenge against the agency’s structure.

According to Ellie Mae’s most recent Millennial Tracker for March, millennial homebuyers are moving to the Midwest. Homes in Midwestern states have proven to be more affordable, and Mount Vernon, Illinois was the most popular metropolitan area for homes purchased by millennial buyers. Other popular cities for millennials included Midland, Texas and Odessa, Texas.