As the mortgage industry is affected by increasing mortgage rates, the Mortgage Bankers Association (MBA) is calling on the Federal Reserve (Fed) to help bring certainty to financial markets. Rising rates are seen as a major problem for over 8 million homeowners who have adjustable-rate mortgages or have yet to refinance.
The MBA has made several recommendations to address the impact of rising rates, focused on bringing certainty to the market. These recommendations include: providing more clarity on the Federal Open Market Committee’s near-term objectives; providing greater transparency around pricing of rate locks and committed loan purchases; and creating transparent communication of Federal Reserve actions.
The MBA is seeking to provide much-needed assurance to the mortgage industry by reducing the uncertainty in the market caused by rising mortgage rates. The main elements of the text are:
• Affected Mortgage Industry: Increasing mortgage rates have had a negative impact on the mortgage industry.
• MBA Request: The MBA is calling on the Fed to bring some certainty to financial markets in order to address the issue.
• Recommendations: The MBA has proposed providing more clarity on FOMC objectives, more transparency around rate locks/loan purchases, and transparent Fed actions.
• Goal: The MBA is hoping to reduce the uncertainty in the market caused by rising mortgage rates by providing assurance to the mortgage industry.
You can read this full article at: https://www.housingwire.com/articles/fed-must-signal-that-its-at-the-end-of-its-rate-hikes-mba/(subscription required)
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