The lack of purchase-mortgage lending activity in Detroit contributes to low home values, deteriorating housing stock and high rates of residential property vacancies, according to a new study from Detroit Future City.
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.
Fannie Mae and Freddie Mac generally widened their credit windows in 2021, but they still preferred mortgages with low and medium loan-to-value ratios.
Retail lending by depository institutions' mortgage-banking operations fell in the third quarter, but a major acquisition by one bank pushed other indicators higher.
UI researchers suggest policymakers ensure public investments are equitably distributed across communities because increasing minority homeownership alone won’t be enough to close the gap in housing wealth.
Although serious-delinquency rates declined at Fannie Mae, Freddie Mac and Ginnie Mae, the agencies reported a sizable increase in 30-day late payments during the third quarter. (Includes data chart.)
Given the home price spike seen in the past 18 months, many distressed borrowers have enough equity to sell their homes rather than face foreclosure. Still, previous practices suggest that a notable share of borrowers with strong equity positions will go through foreclosure.
The mortgage industry is under increasing pressure to enhance disclosures related to climate change but is facing challenges in determining common measurements and risk models, according to a new report.
HMDA data show that minorities face notably higher denial rates than white borrowers, and more so if the mortgage is underwritten manually. (Includes data chart.)