Morning Report: Servicing becomes a political target

Vital Statistics:

 

Last Change
S&P futures 3214 19.1
Oil (WTI) 40.74 0.41
10 year government bond yield 0.61%
30 year fixed rate mortgage 3.02%

 

Stocks are higher this morning on no real news. Bonds and MBS are flat.

 

Housing starts came in at 1.19 million, right about in line with expectations. Building permits came in at 1.24 million. Separately, the NAHB Housing Market Index, a measure of homebuilder sentiment, increased again.

 

The number of mortgages in forbearance plans declined again, according to Black Knight Financial Services. A net 27,000 mortgages exited forbearance last week, bringing the total down to 7.77%.

 

The House is reviewing the forbearance guidelines from servicers during the pandemic. Of course the panel members were mainly fair housing lawyers and Ed DeMarco, not actual lenders or servicers, so it was one-sided. Suffice it to say they aren’t happy. Expect this subject to become a bigger issue for Democrats to pound on since this is an election year, and nobody in DC or the media understands this business in the first place. I wouldn’t be surprised to see some kvetching about lender FICO overlays on FHA loans as well.