Guardian Residential Lending Industry News, October 3 – 10, 2019

Guardian Residential Lending Industry News, September 26 – October 3, 2019
October 3, 2019
Guardian Residential Lending Industry News, October 10-17, 2019
October 17, 2019
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In the Know: A Roundup of This Week’s Local and National Real Estate Stories 

Refis are up; so are bidding wars…


Bidding wars are taking a strange turn in the fall housing market (CNBC, Oct. 8)

In September, 11% of offers written by Redfin, a national real estate brokerage, faced a bidding war.

That is down dramatically from 41% a year ago, but up from the 10% reading in August. It might not seem like a big deal, but in the past four years, the bidding war rate has dropped from August to September, not increased.

San Francisco continues to be the most competitive market with a 28% bidding war rate. Las Vegas and Phoenix tied for second with 21% of offers facing a bidding war.



VA refunds more than $400 million in loan fees (HW, Oct 9)

Some disabled vets were incorrectly charged, review showed

Disabled veterans are exempt from the VA funding fee, which typically costs between 0.5 percent and 3.3 percent of the loan’s balance.

An inspector general report released earlier this year found that at least 53,000 disabled veterans had been charged the funding fees in recent years.



California enacts statewide rent control (HW, Oct. 9)

Gavin Newsom signed a statewide law that controls how much landlords can charge for rent. Starting in 2020, the law caps annual rent increases to 5% plus inflation.

The governor called Assembly Bill 1482 the “nation’s strongest statewide renter protections.”

With Newsom’s signature, California became the second state in the nation to pass a rent cap. Oregon passed a similar law in March.



It’s official: Appraisals are no longer required on some home sales of $400,000 and under (HW, Oct. 8)

Regulators raise appraisal threshold for first time since 1994

Now, it’s important to note that the new rules DO NOT apply to loans wholly or partially insured or guaranteed by, or eligible for sale to, a government agency or government-sponsored agency.

What that means is that loans sold to or guaranteed by the Federal Housing Administration, Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, or Freddie Mac will still require an appraisal, per each agency or companies’ rules.

Put simply, the loans that are affected by this rule are either held in portfolio by lenders or sold to secondary market investors via the private-label securitization market.



Jumbo Credit Access Hits Record High (Mortgage News Daily, Oct. 8)

Ease of access to jumbo mortgage loans drove the Mortgage Bankers Association’s (MBA’s) Mortgage Credit Availability Index higher in September. The Index rose 0.9 percent to 183.4. An increase in the Index indicates that lending standards are easing.



The role housing finance can—and should—play in expanding homeownership (HW, Oct. 1)

Changing demographics should drive homeownership



New plunge in mortgage rates could save borrowers thousands of dollars (CNBC, Oct. 3)

-The average rate on the popular 30-year fixed mortgage was at 3.75% last Friday. By Thursday, it had dropped to 3.62%, according to Mortgage News Daily.

-Rates are now about 1.25 percentage point lower than they were at this time last year.

-For the average borrower taking out a $300,000 mortgage, that is a savings of about $225 on the monthly payment, or $2,700 per year.



Just For Fun

These Are the Most Profitable Home Remodeling Projects (, Oct. 3)



Thanks for reading!