The Fed chief told elected officials that whatever housing finance reform plan they choose to replace Fannie Mae and Freddie Mac, it should be clear to private investors about the government’s role in the market.
You would think that a bank with a small presence in mortgages would jump at the opportunity to keep the fast-growing residential arm of a merger partner. But that’s not the case with MF Financial, a mid-sized bank that earlier in the week announced that it would buy Taylor Capital, parent of Cole Taylor Bank, in a stock deal valued at $680 million. Although MF Financial took a close look at the subsidiary, Cole Taylor Mortgage, it decided that the unit is not essential to the deal. In fact, it’s so non-essential ...
With interest rates increasing, some new borrowers have turned to adjustable-rate mortgages. Industry analysts expect the ARM share of originations will increase, but limited product offerings and tight underwriting standards will likely prevent the ARM originations from reaching levels seen during the previous mortgage boom. The record low interest rates on fixed-rate mortgages in recent years have given borrowers few reasons to take ARMs. Interest rates on mortgages have increased significantly recently ...
Negative home equity is not an important barrier for a homeowner to decide to move elsewhere for a better job, although underwater homeowners are probably more likely to move than borrowers with equity in their homes, according to researchers at the Federal Reserve Bank of Cleveland. The study presents evidence debunking the theory that homes with underwater mortgages deter unemployed people from moving to get new jobs. The “lock-in” theory holds that unemployed people with negative equity could ...
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