Retail platforms benefited the most from a huge increase in agency refinance business from the first to the second quarter. First-time buyers held on in a precarious housing market. (Includes two data charts.)
A smaller share of Fannie/Freddie purchase loans fell in the highest-risk category during the first quarter of 2020, although there was an upswing in higher-risk refinance loans. (Includes two data charts.)
Credit unions tend to offer mortgages with lower interest rates than other lenders. However, their share of originations is relatively low and the gap between them and banks in terms of interest rates has narrowed.
Despite talk that lenders would reduce loan originator compensation in 2019, comp increased on an annual basis. Lenders could reduce LO comp this year with refi business expected to decline.
Lower interest rates on mortgages are linked to an increase in birth rates, according to economists at the Federal Reserve and the Bank of England. Hard to believe? Read our story.
The FHFA has been pushing Fannie and Freddie to reduce the risk profile of the loans they acquire, and that effort appears to be taking hold as the share of high-risk new business fell drastically in the fourth quarter. (Includes two data charts.)
Findings by HUD that mortgages with DPA perform worse than other loans fail to include important controls, according to research published by the St. Louis Fed. In other words, downpayment assistance loans aren't so risky after all.
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