Mortgage lenders that sell single-family loans into Fannie Mae and Freddie Mac mortgage-backed securities continued to stretch the credit envelope during the third quarter, a new Inside Mortgage Trends analysis reveals. But the increase in the share of higher-risk lending is still going at a glacial pace, and low-risk mortgages continue to dominate the government-sponsored enterprises’ business. During the third quarter, mortgages in the lowest ... [Includes two data charts]
Homebuyers’ “typical mortgage payment” has climbed about 10 percent in 2017 and may climb another 11 percent in 2018, according to a new analysis from CoreLogic. Company analysts attributed the payment change to rising mortgage rates over the past year. Typical mortgage payment (TMP) is a mortgage-rate-adjusted monthly payment based on each month’s median home-sale price. It is calculated using Freddie Mac’s average rate on a 30-year, fixed-rate mortgage with ...
As the mortgage industry continues evolving toward a 100 percent, end-to-end digital mortgage, automation and collaboration are playing essential roles, according to some top vendors. Bob Brandt, vice president of marketing and alliances at Optimal Blue, said, “The digital movement in the mortgage industry is all about automation – automation of the mortgage process truly from end to end: from lead generation to point of sale to processing and closing and the delivery of loans ...
Recent guidance from the Office of the Comptroller of the Currency aims to allow banks to originate mortgages with high loan-to-value ratios to help borrowers in distressed areas complete home improvements. The OCC released guidance in August addressing originations of mortgages with LTV ratios above 90 percent, even allowing for LTV ratios above 100 percent in certain circumstances. Keith Noreika, the acting Comptroller of the Currency, discussed lending in ...
A lack of homes for sale is limiting the first-time homebuyer share of home purchases, according to the National Association of Realtors. NAR’s latest annual profile of homebuyers found 34 percent of respondents were first-time homebuyers, down from 35 percent in the 2016 report and the fourth lowest share for first-time homebuyers since 1981. The historical norm for first-time homebuyer share is 40 percent, according to NAR. Lawrence Yun, NAR’s chief economist, said a “severe drought” ...
Conventional mortgages that meet Fannie Mae and Freddie Mac purchase guidelines remained the biggest source of new home lending during the third quarter, although other product types saw sol-id increases in origination volume as well.
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