News

In a note sent earlier this week, equity research analyst Richard Bove at Rafferty Capital Markets warned clients of a potential mortgage crisis in the making, according to a report from CNBC. With the Federal Reserve on track to end its monthly bond purchases, Bove cautions that the loss of one of the tools used to help lift housing out of its post-recession rut could hurt the market, especially as interest rates start to tick back up.

The Federal Housing Finance Agency proposed a rule to amend financial institutions' requirements for application and membership retention in one of the 12 Federal Home Loan Banks. The revision was proposed to ensure that members stay committed to housing finance and that only those eligible will have access to membership benefits and advances from one of the Federal Home Loan Banks.

After a poor reading earlier in the month, consumer sentiment in August recovered more than expected, despite concerns about the economy's future direction. The University of Michigan/Thomson Reuters Index of Consumer Sentiment climbed to 82.5 in the final August reading, slightly better than July's final value of 81.8 but a sharp upturn from a mid-month reading of 79.2.

The last two months saw continued economic growth at a modest to moderate pace, according to reports in the Federal Reserve's latest Beige Book, released Wednesday. Since the previous Beige Book report, "barely half" of the reporting districts said they have experienced stability or growth in home sales and new construction, which each grew modestly.

Advertising veteran Jay McCarthy has joined Churchill Mortgage as chief marketing officer, the company announced.

In response to the housing market's increasing demand for appraisal management companies (AMCs) and the growth of its own client base, California-based valuations firm LRES is expanding its sales division, the company announced.

Based on weekly data released by the Mortgage Bankers Association (MBA), macroeconomics firm Capital Economics calculated a 0.4 percent monthly decline in mortgage applications in August. It was the third drop in the last three months, following declines of 0.1 percent in June and 3.4 percent in July.

Total construction spending, both private and public, surged to a seasonally adjusted annual rate of $981.3 billion, up from $906.6 billion in July last year. For private residential construction, the numbers reflected a 7 percent boost year-over-year, eclipsing new home data in June at a seasonally adjusted annual rate of $358.1 billion.

A pickup in new business failed to provide positive growth for Fannie Mae's book of business in July, resulting in another month of contraction. The company reported -0.6 percent annualized growth in its book in July, marking the eighth straight month of declines. While still negative, July's negative growth rate was the lowest so far this year, bringing the year-to-date average to -2.0 percent.

Rushmore Loan Management Services LLC, a national residential mortgage servicer, is extending its reach into Puerto Rico with the addition of a new branch in San Juan.