The share price of certain mortgage stocks took it on the chin in 2014, caught in all the negative publicity surrounding Ocwen Financial and nonbank mortgage companies. According to an analysis by Inside Mortgage Finance of a select group of nonbank lender/servicers, Ocwen’s stock suffered the largest decline in 2014 as measured by current price to its 52-week high. Based on prices this week, Ocwen’s common is trading at a 76 percent discount to its high for the past 12 months. Ranking second in this ignoble category is...[Includes one data chart]
Mortgage underwriting standards have loosened in recent years, led by the jumbo market and reduced overlays on agency mortgages, according to the Mortgage Bankers Association. However, underwriting standards aren’t nearly as lenient as they were in the early 2000s, prompting some to call for further loosening. The MBA’s Mortgage Credit Availability Index has trended up since the beginning of 2012. “Most of the action in terms of loosening has been on the jumbo side,” said Michael Fratantoni, MBA chief economist, at a talk hosted this week by the Urban Institute’s Housing Finance Policy Center. Separately, he noted...
The National Association of Realtors recently estimated that in 2014, nearly 234,000 creditworthy borrowers were priced out of the housing market because of high FHA insurance premiums.
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