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UWM CEO says buy; Mortgage profits dip; CFPB wants experts 🤔

By June 11, 2021 No Comments

UWM Ishbia: There is no housing bubble, it’s a GREAT time to buy

As the housing market intensifies and home prices skyrocket, there are concerns that the market could be entering into a housing bubble. But one mortgage expert says there’s nothing to fear

“Despite what you may have heard, we are not in a housing bubble,”said United Wholesale Mortgage CEO Mat Ishbia said in his monthly video message.

Ishbia adds that the last housing market crash, in 2008, was the result of a faulty foundation the mortgage industry was built

 upon. The CFPB since implemented significant industry reforms in the following years to prevent a similar collapse from ever happening again. 

“It’s still a great time to buy and more inventory will open up this year in Q4 and Q1 of 2022,” Ishbia said. 

The latest homebuyer survey report from Point2Homes showed that just 21% of house hunters plan to buy a home in the next six months, down significantly from 34% at the start of the pandemic and 53% at the beginning of 2019.

That’s because market conditions, like low supply and rising home prices, are discouraging many potential homebuyers and point to a seller's market. 

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Fannie Mae: Mortgage profits dip, again

Bad news.

For the third consecutive quarter, an increased share of mortgagelenders expect profit margins to retreat further from last year's highs, according to Fannie Mae's Q2 2021 Mortgage Lender Sentiment Survey

“This quarter, the largest net percentage of lenders in the survey's seven-year history are expecting a decrease in their profit margin outlook,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist.

According to the second quarter survey, 69% of lenders believe profit margins will decrease in the three months ahead compared to 52% in the prior quarter, while 19% believe profits will remain the same and 11% believe profits will increase.

Looking at consumer demand over the prior three months, across all loan types, more lenders reported increased demand for purchase mortgages but significantly reduced refinance mortgage demand. 

Looking ahead, lenders' expectations for purchase demand growth over the next three months remain relatively strong but are down slightly from last quarter for GSE-eligible and government loans, while refinance demand expectations fell significantly across all loan types.

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CFPB is looking for mortgage experts to spy on mortgage industry

OK, so “spy” is probably a pretty strong word.

But in the job advertisement that the CFPB is quietly spreading,there is the following task: “research and identifying emerging risks in the market…” which is to say in another way: “identifying the bad actors.”

The role lasts for two years and pays between $90k-$138K per year, depending on experience. Technically, you’d be in the CFPB’s Markets & Policy fellowship, so it helps to have experience in both mortgage origination and mortgage servicing.

Here’s how you can apply, for those interested.

“As a CFPB Policy Fellow, you will be a critical force multiplier as the Bureau develops new policies and strategies to support our mission. This is your opportunity to use your unique experience to make lasting impact on the most pressing issues for consumers,” said CFPB acting director, David Uejio, on the open role.

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