Mortgage Industry Updates: Monthly RoundUp – June 2021

Last month involved several regulatory compliance updates and hot topics in the Mortgage industry. We’ve rounded up some key updates and how they will affect you and your financial institution going forward.

What the Biden Tax Plans Mean for the Housing Market

Thankfully, after more than a year with numerous challenges, it appears that the pandemic will end. From an economic perspective, the government acted boldly to support households and businesses through the crisis with monetary and fiscal stimulus. Now, just as the recovery has commenced, after a four-year pause we are at the beginnings of another tax debate under the Biden Administration.

In this column, read about some of the context for this debate with respect to the state of the U.S. federal budget, particularly on the revenue side, and of overviews of the 2017 Tax Cuts and Jobs Act (TCJA) and President Biden’s tax plans and the two 2021 proposals: The American Jobs Plan and The American Families Plan.

Why Is This Important to Me and My Financial Institution?

Understand how the Biden Tax Plan will affect the Housing Market. As part of the America Jobs Plan, there are propositions to invest $213 billion in affordable housing in the form of expanding the Low-Income Housing Tax Credit (LIHTC), and possibly the creation of a new Middle-Income Housing Tax Credit (MIHTC), and the Neighborhood Homes Investment Act (NHIA). In turn, the Biden Tax Plan could affect mortgage rates.

Regulatory compliance roundup - September 2020

Refinance Loans Continue to Drive Mortgage Lending During First Quarter 

According to Attom Data Solutions, refinances continued to drive mortgage lending across the U.S. during the first quarter of 2021. Total lending is up 3% quarterly and refinance activity is up 12% during January-March. Per Scotsman guide, the data from Attom Data Solutions found that lenders originated 3.77 million mortgages secured by residential properties in Q1. That is the highest level of lending in more than 14 years, up 71% from the same period in 2020 (pre-pandemic).  “Homeowners lined up to refinance their loans in ever-growing numbers during the first quarter of 2021, making for a highly unusual quarterly increase in total lending activity for that time of year,” said Todd Teta, chief product officer at Attom. “The home-mortgage industry almost always slows down in winter, but not this year because of so many homeowners hopping on super-low interest rates to reduce their monthly payments.”

Why Is This Important to Me and My Financial Institution?

The refinance boom continued into the first quarter of 2021. With no signs of slowing down, the refinance boom is a marker that the housing market remains strong despite the economic blowback caused by the pandemic.

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By |2021-06-09T09:56:14-06:00June 9th, 2021|Financial Services, Mortgage|0 Comments

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