Household growth between 2010 and 2030 will be overwhelmingly nonwhite and half of the net new homeowners over the next 15 years will be Hispanic, according to experts in a forum on demographic changes hosted this week by the Urban Institute. Groups with low “headship” rate (the number of householders who are primary borrowers) and homeownership rates, including Hispanics and other nonwhites, constitute a growing share of the U.S. population ...
Despite millions of dollars and hours spent on educating consumers about the mortgage process, many still lack the knowledge and understanding of how the process works, results of a new Fannie Mae survey suggest. The survey set out to discover why the homeownership rate remains at a low level (63.7 percent in the third quarter of 2015) despite easing credit standards, a higher employment rate and strong consumer desire to own a home. The online survey of 3,868 respondents found ...
As an increasing share of “baby boomer” mortgage executives reach retirement age over the next few years, there’s a growing concern about a talent “brain drain” from the industry. But rest assured, there’s still plenty of senior managers who plan on working well past the standard retirement age of 65. “The retirement rate of 10,000 people [baby boomers] per day may be applicable to the general population, but I do not think it is applicable to the mortgage banking industry,” said Larry Charbonneau ...
Wells Fargo is close to reaching a $25.75 million settlement of a class-action lawsuit involving delinquent borrowers who were charged fees for property inspections. The settlement would resolve allegations of violations of the Racketeer Influenced and Corrupt Organizations Act, among other issues. The bank has denied the allegations while noting that it desires to settle the lawsuit to avoid “the burden, expense and uncertainty of continuing litigation.” The lawsuit, Young v. Wells Fargo ...
A significant shift occurred in bank loan modification practices in the third quarter of 2015, according to data from the Office of the Comptroller of the Currency. Major banks’ use of proprietary loan mods declined sharply compared with the previous quarter while the number of Home Affordable Modification Program mods was nearly level in that span. The OCC’s data cover eight banks with a combined $3.73 trillion servicing portfolio, 42 percent of all outstanding first-lien residential mortgages ...
An analysis of the first in a wave of loans that were modified after the financial crisis suggests that interest rate resets required by the Home Affordable Modification Program are not causing a spike in delinquencies. The predominant loan mod completed under HAMP reduced a borrower’s interest rate to as low as 2.00 percent for five years, then required a yearly 1.00 percentage point increase to the interest rate until reaching the primary mortgage rate in effect at the time of the mod ...
Meanwhile, Wells Fargo was the top-ranked ARM lender through three quarters in 2015 with $18.83 billion funded. PHH Mortgage was a somewhat close second...
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