Headlines

According to a major industry organization, President Trump’s potential tax reform could make homeownership unaffordable for many Americans. The President’s plan would raise the threshold on the mortgage interest deduction, allowing only those with the heftiest home loans to take advantage of it. To date, the MI deduction has primarily benefited middle-class taxpayers. If reformed, it may cease to do that.

New data shows that mortgage originations are in freefall. While both purchase loan originations and refinances took a hit, refis saw the steepest drop, decreasing 34 percent over the first quarter of the year. Purchase originations dipped 21 percent over the same period. The average credit score of borrower is also on the decline, which could dampen the market if the trend keeps up.

RE/MAX Holdings, Inc. announced Tuesday the immediate appointment of COO Adam Contos to RE/MAX Co-CEO sharing responsibilities with Co-Founder and now Co-CEO Dave Liniger.

Wells Fargo Home Lending announced that Liz Bryant will now lead the company’s retail sales organization reporting to Head of Mortgage Production, Michael DeVito.

Bank boards might see less directives from the Federal Reserve if Jerome Powell has his way. The Federal Reserve Governor would like to allow banks’ board of directors to spend more time worrying about management and less time on day to day tasks. He also acknowledges the industry’s frustration with the lack of transparency in the CCAR, and would like to amend it to make it more efficient and effective.

New data shows rents are steadily increasing, and with increasingly tight housing inventory, those rents will likely get even higher as potential buyers are driven toward renting. Experts expect rents to increase 1.5 percent by the end of the summer. They’ve already grown more in five months of 2017 than all of 2016 combined.

Dr. Ben Carson, Secretary of the Department of Housing and Urban Development, is gearing up for a big June. On the heels of a recent proclamation from President Trump, declaring the month “National Homeownership Month,” Dr. Carson hosted an academic forum at his agency earlier today. He’s also preparing to go before Congress next week to discuss Trump’s recent 2018 budget blueprint, which proposes a $6.2 billion cut from HUD’s funding.

In a new survey, more homebuyers cited that their reasoning for buying a home was personal choice—build equity, move to a good school district, have a larger yard or living area, secure a vacation home—than out of necessity. Twenty-six percent said sudden or unexpected changes to their life, such as pregnancy, marriage, divorce, a death in the family, financial hardship, or health reasons necessitated their purchasing of a phone, as opposed to the former 31 percent. Unsurprisingly, those who wanted to buy were more likely to secure a FHA loan to pay for their home, while those who felt like they needed to buy took a 30-year mortgage or paid cash.

As millennials secure stable post-recession jobs, they are flocking to the Midwest—particularly Minnesota, Wisconsin, and Indiana—to purchase homes. Low inventory and high demand have created a seller’s market in almost every region across the three states. Sellers have even reported getting multiple offers without having to negotiate.

A recent survey of mortgage professionals shows that a majority are ready for regulation changes to the Home Mortgage Disclosure Act. Most of those polled believe requirements for collecting, analyzing and reporting data, coupled with a lack of resources to manage the mortgage data, contributes to the rising cost of loans. Nearly a quarter share President Trump’s sentiment that policy changes to the mortgage industry would be beneficial to the lending market.