Modest recession still more likely than soft landing: Fannie Mae

Fannie Mae is holding to its forecast of a modest recession in the second half of this year, even as conflicting views emerge about the likelihood of a Federal Open Market Committee pause on short-term rate hikes. Those discussions have also included whether the U.S. economy is heading for a soft landing instead of the downturn expected because of the Fed's tightening that started last March. "There are select data available to support several alternative views of the path of the economy, though we maintain our view that a modest recession will begin in the second half of 2023," said Doug Duncan, Fannie Mae's chief economist, in a press release.??

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Black Knight, ICE claims should be dismissed, FTC argues

The Federal Trade Commission filed a single response to both Black Knight and Intercontinental Exchange, asking a judge to strike the constitutionality and separation of powers claims they raised in their respective April 25 filings. Those claims are "impertinent" and "immaterial" to the matter at hand, the FTC filing made on May 16 argued. In those responses, both Black Knight and ICE raised eight common defenses to the FTC's claims seeking to halt the merger. Those are the arguments the FTC is seeking to have an immediate ruling on. Additional defenses have been raised that were not addressed in this newest filing.

HUD's watchdog takes issue with its retired COVID-19 policy

The Department of Housing and Urban Development's temporary policy for endorsing loans with COVID-19 forbearance was "unclear" and exposed the Federal Housing Administration's insurance fund to risk, an audit by a government watchdog found. Per a report published by HUD's Office of Inspector General, at least $83 million worth of loans were insured by the FHA, a part of HUD, without lenders following the necessary protocols. The policy, put in place June 15, 2020, gave lenders the ability to insure loans that went delinquent due to COVID-19, thereby continuing the flow of capital in the system.

New-home lending increases for third straight month

Mortgage applications for new residential homes rose on an annual basis last month but fell versus March, with the segment currently showing greater promise than the rest of the housing market, the Mortgage Bankers Association said. Loan applications for new single-family constructions in April increased 4.1% on a year-over-year basis, according to the MBA's Builder Application Survey. When compared with the prior month, however, volumes declined by a nonseasonally adjusted 11%. Although application volumes have slowed since earlier in 2022, recent government data is providing some glimmers of an upcoming reversal.?

Will Mat Ishbia run the Phoenix Suns like United Wholesale Mortgage?

On Feb. 6, Mat Ishbia, the CEO of United Wholesale Mortgage, purchased a 57% stake in the Suns, who are valued at $4 billion. Ishbia also purchased a majority stake in the WNBA's Phoenix Mercury. Within two days, Ishbia had successfully pushed Suns management into trading for the brilliant if mercurial basketball superstar Kevin Durant. It seemed an indication that Ishbia would run his basketball team with the same aggressiveness that he's run his mortgage company. Ishbia's Suns endeavor brings scrutiny to how he treated competitors, mortgage brokers and employees on his way to national notoriety. Interviews, safety citations – and multiple unresolved lawsuits – regarding UWM raise several questions, each leading back to one main thought: Is it really okay to run a business in 2023 like you would run an ultra- competitive basketball team?

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