The MReport Webcast: Friday 10/2/2015

The U.S. Census Bureau reported Thursday that residential construction spending increased 0 point 7 percent in August to an estimated seasonally adjusted annual rate of 1,086 point 2 billion dollars from the upwardly revised estimate of 1,079 point 1 billion dollars in July. According to the Bureau's report, construction spending is 13 point 7 percent above the August 2014 estimate of 955 billion dollars.

In the first eight months of 2015, construction spending totaled 683 point 4 billion dollars, 9 point 8 percent above the 622 point 4 billion dollars for the same period in 2014. New single-family construction spending reached 218 thousand 828 million dollars in August, up 0 point 7 percent from 217 thousand 265 million dollars recorded in July, and up 14 percent from last August.

Small, community banks require more regulatory relief, especially those that hold mortgage originations, so what can be done to reduce this burden? St. Louis Fed President James Bullard discussed regulatory burden and what can be done to reduce this burden on community banks at a conference. He suggested that regulators consider increasing the transaction value threshold under which a property requires an appraisal by a state-certified or licensed appraiser and consider mandatory escrow requirements for taxes and insurance premiums on mortgages that are held in a community bank's portfolio.