Despite tighter lending standards enacted by mortgage lenders beginning in 2007 and new regulations like the QM Rule, the risk of mortgages originated today is 13 percent higher than it was in the 1990s. The Default Risk Index for the second quarter of 2014 rose to 113 from last quarter’s revised 112 in our baseline scenario. Under current economic conditions, … Read More »

Halfway through the spring buying season, mortgage applications fell 1.2 percent for the week ending May 21 and the  unadjusted Mortgage Bankers Association’s Purchase Index fell even more.  It was down 2 percent in just one week-15 percent lower than it was a year ago at this time. Such a decline in borrowing to buy a home in the third … Read More »

It’s no secret that raising the cash for a down payment is the toughest hurdle first-time buyers face on the road to home ownership.  For many, government programs like FHA, USDA Rural Development guaranteed loans, VA loans and down payment assistance programs sponsored by state and local housing authorities have made all the difference. Yet requirements by lenders in the … Read More »

  While everyone from the chairman of the Federal Reserve to millions of home sellers and buyers pleads for a little relief from tight lending standards, the nation’s leading banks are moving in exactly the opposite way. In the latest survey of senior loan officers by the Fed, during the first quarter requirements to get a mortgage became tougher for … Read More »

The mortgage delinquency rate has declined more than 24% in the last year and is now at 3.61%, the exact same level as it stood in Q2 2008. according to TransUnion’s latest mortgage report. Though delinquencies are down, non-prime loans are up and TransUnion has nearly 10 million fewer  mortgage accounts than it did six years ago. “It’s encouraging to … Read More »

  Past generations preferred to stick their savings in mattresses rather than the bank.  Current home buyers would rather pay with a wheelbarrow of cash rather than endure the hassles of taking out a mortgage While cash purchases are traditionally associated with investors, current homeowners have turned to cash in an effort to gain an advantage in the bidding process … Read More »

It’s nothing to cheer about, but the latest data from Ellie Mae’s March data gave home buyers reasons to smile slightly.  Median FICO scores for FHA purchase loans have steadily risen over the quarter and closing rates for all mortgages took a big step upward. Some 58% of mortgage applications were approved in March, a significant improvement over February (55.3%) … Read More »

  In yet another sign the recovery is hitting a wall due to strict lending standards: in February monthly mortgage originations dropped to the lowest level in at least 14 years as credit standards have not shown signs of loosening, according to latest Mortgage Monitor Report from Black Knight Financial Services. “February’s data showed the continued trend of declining origination … Read More »

One third—33% of closed loans—had an average FICO score of less than 700 compared to 24% one year ago, yet another sign that lending standard are easing.  Or are they? According to Ellie Mae’s latest monthly origination report, great progress is being made in reducing the average FICO score to give more average American families a shot at a mortgage, … Read More »

  The qualified mortgage (QM) rule that took effect in January will raise mortgage rates for borrowerw with lower FICO according to survey of lenders released today. A survey by economists at the National Association of Realtors found that borrowers who cannot qualify for QM status because of their credit histories will pay a big price in higher mortgage rates. … Read More »