Under the proposal from Urban Institute authors, mortgage servicers would be required to call borrowers within three months to offer refinancing once a payment reduction is triggered.
Although the nation’s job numbers look exceeding bright, all is not well with the mortgage industry where the job shedding machine is working overtime.
Low-balance borrowers seeking to refinance pay proportionally higher closing costs and receive a smaller reduction in interest rates, according to findings published by the Federal Reserve.
Purchase-mortgage business with primary mortgage insurance held up well in the second quarter while refi activity dropped, according to an analysis of agency MBS issuance. (Includes two data charts.)
As retail and correspondent loan sales to the agencies fell by 20%, lenders became visibly less discerning about credit quality, with credit scores dropping and DTI/LTV ratios rising. (Includes two data charts.)
Private mortgage insurers gained share in the primary MI market in the first quarter of 2022, helped by purchase-mortgage activity. VA loans accounted for the majority of refis with primary MI during the period. (Includes two data charts.)
The reason: Single female borrowers are generally less affluent than single male borrowers, have lower incomes and take out smaller loans, according to researchers at the Urban Institute.
Soaring home values boosted the national average equity stake in a mortgaged residential home to $185,000 at the end of 2021. The year-over-year gain: $48,000.
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