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Fannie Mae announced June 21 that it will delay until late September its updates to the Desktop Underwriter program. The updates, which originally were slated for June 25, should provide more certainty to lenders while expanding access to credit and homeownership to a larger pool of borrowers.
The White House on June 21 released regulations for drone usage, including issuing aircraft weight and flight restrictions. Commercial operators will need to be vetted by the Transportation Security Administration and have to pass an aeronautical knowledge exam at an FAA-approved test center.
Homeowner and appraiser opinions of property value grew closer in May, with appraiser valuations only 1.89 percent lower than homeowner estimates, down from 1.95 percent in April, Quicken Loans reported June 14 in its Home Price Perception Index.
Federal Deposit Insurance Corporation Chair Martin Gruenberg said June 15 that banking rules intended to safeguard the U.S. financial system are not hurting the economy or harming financial markets, Reuters reported. Banks were required to toughen underwriting standards and pull back from some risky lending after the 2008 financial crisis.
The Financial Accounting Standards Board on June 16 unveiled its new loss accounting framework, which requires lenders to record at loan origination all credit losses anticipated throughout the life of a loan, ABA Banking Journal reported. The framework should increase the allowance for loan and lease losses.
Mortgage credit availability is declining and unlikely to ease in the near future, Fannie Mae reported June 14 in its Mortgage Lender Sentiment Survey. Ninety percent of respondents indicated that credit standards will remain unchanged during the next three months.
Average fixed mortgage rates dropped for the second consecutive week due to anxiety over the Fed’s June meeting and free-falling 10-year Treasury yields, Freddie Mac reported June 16 in its Primary Mortgage Market Survey.
Nearly three quarters of individuals with student debt expect it to stymie their ability to purchase a home, and more than half expect a purchase to be delayed at least five years, the National Association of Realtors reported June 13 in a joint report with SALT, a nonprofit student assistance program.
Recessions have the greatest impact on metro areas dependent on housing, according to a Journal of Urban Economics study, The Atlantic reported June 9. The recession in the late 2000s hit 49 of the country’s 50 largest metros — sparing only Oklahoma City — and those hit hardest were devastated by a housing collapse.
China is the largest foreign investor in U.S. real estate, having spent $93 billion on residential real estate and $17.1 billion on commercial real estate between 2010 and 2015, according to a joint study by the Asia Society and Rosen Consulting Group, Commercial Property Executive reported June 15.
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