Affecting Origination: Shameless Plug, HO Rate Plummets, Tight ending Standards, Household formation, mREITS, MetLife Reverse Reactions, 3.0% TBA MBS?, Wells is 33%, Freddie Repurchase Demands, Freddie Mods, FHA Insurance Fund, Take the 15 Year

BillCoppedge_26Nov2011original content selection by MortgageNewsClips.com

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(shameless plug – I know the author – he’s the real deal) New FHA eBook — Less than $3Ever wonder how FHA mortgages really work — but don’t want spend a month memorizing a 400-page manual? Instead, the 2012 edition of the The Quick & Dirty Guide To FHA Mortgages is now available, a clear and short explanation of the FHA program, how it works and how to qualify.  (thanks Peter Miller)

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(lots of stats) Homeownership Rate Plummets to 15-Year Low - BY: MARK LIEBERMAN, FIVE STAR INSTITUTE ECONOMIST – Homeownership rates dropped to 65.5 percent in the first quarter, reaching lows not seen in fifteen years, the Census Bureau said – The M Report    
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Banks Resume Tight Mortgage Lending Standards – BY: MARK LIEBERMAN, FIVE STAR INSTITUTE ECONOMIST – With an upsurge in demand, banks resumed tightening standards for residential mortgage loans, the Federal Reserve said Monday in a quarterly survey for bank lending standards. – The M Report
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Fewer Americans form households after recession, hampering economic recovery – By Michael A. Fletcher – Washington Post

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High Yield Mortgage REITs Are Still A Buy Despite Stagnant Housing Market – Parsimony Investment Research – Seeking Alpha 

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(5 media reactions) National Press on MetLife Reverse Mortgage Decision: Just Another Exit – by Elizabeth Ecker – Reverse Mortgage Daily

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Prospects For Liquidity in Conventional 3.0 MBS And Mortgage Rate Implications - BY BILL BERLINER – At current near-record levels of consumer mortgage rates, and with MBS prices grinding higher, a natural question is whether rates are poised to push downward to new lows. In turn, a critical issue is whether the market for 30-year conventional 3.0s has become liquid enough to absorb a substantial increase in issuance of loans with rates of 3.75% and lower. I’m dubious; as I’ll show, the lack of issuance and thin float in 30-year Fannie and Gold 3s suggests to me that a sustained burst of issuance would crush its price and cause real difficulties for originators attempting to hedge their pipelines. – Mortgage News Daily

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Wells Fargo’s Market Share of U.S. Mortgages Tops 33% – By Dakin Campbell – Bloomberg
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Wells Fargo’s mortgage dominance worries regulators and investors – With Bank of America and Citigroup taking a back seat, Wells is now originating 34% of all home loans. – By E. Scott Reckard, Los Angeles Times – .. Experts said Wells’ ascendance has come not because of its own aggressive lending but because Bank of America Corp., once the largest home lender, and Citigroup Inc., another major player, have retreated from the current hot market to deal with other problems. "It’s unbelievable how few loans Citi and Bank of America now make," said Scott Simon, (at) Pimco in Newport Beach. "The biggest problem now is that many good borrowers can’t get loans." … 
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(repurchase demands) Freddie Mac Says Mortgage Refund Demands Hit $3.2 Billion – By Rick Green – Freddie Mac, the mortgage-finance company operating under U.S. conservatorship, said its pending requests to lenders for refunds on faulty mortgages rose about 19 percent in the first quarter to $3.2 billion.  – Bloomberg

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Freddie Mac mortgage modifications down as fewer loans go delinquent – by Jon Prior – Freddie reported just 14,000 mortgage modifications in the first quarter. But it actually might be a good thing as fewer loans are going seriously delinquent and a new program is launched – Housingwire
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(different views on undercapitalization of FHA insurance fund) New Problems For The FHA? – by Phil Hall – … Gyourko’s report also blames the FHA’s artificially low default forecast on the administrative decision to downplay a variable that considers the unobserved credit risk of recent mortgage pools. "This leads to dramatically lower forecasts of default – on the order of 50 percent for a typical borrower in the FHA insurance pool," the report says. "No theoretical or empirical foundation for this decision is provided, which effectively implies that there will be no more unobserved high credit risk in the future."… – MortgageOrb
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Take a 15-Year Term If You Can Afford the Payment – Jack Guttentag – The Mortgage Professor

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