Archive for the 'Mortgage Credit News' Category

Cash-out Refis Hit Highest Rate in 8 Years

American homeowners are tapping their home equity again, with the cash-out share of refinances rising to its highest rate since 2008, according to data from Black Knight Financial Services. According to its Mortgage Monitor Report, Black Knight found that 42 percent or 300,000 of all first lien refinances in the 2015 third quarter involved taking cash out of borrowers’ equity, the highest share in 8 years. On average, cash-out borrowers took out an average of $60,000, the greatest average sum Read more [...]

New Fannie Mae Rules Allow for ‘Non-Traditional’ Credit Histories

Mortgage guarantor Fannie Mae is easing its credit requirements for homebuyers, in the hopes of expanding the benefits of homeownership to qualified borrowers who may not have a traditional credit history. FannieMae, a company which backs mortgages made by private lenders and sells those loans in bundles as securities, announced Monday that it will allow lenders to use alternate forms of credit information to qualify applicants. Up to this point, lenders would input borrower data into Fannie Read more [...]

Mortgage Credit Eases for Sixth Straight Month

While still nowhere near the uber-lax standards of the housing bubble days, mortgage lenders have loosened their loan requirements over the past six months, according to the Mortgage Bankers Association, a welcome sign for borrowers across the country. The MBA’ Mortgage Credit Availability Index (MCAI)  posted a 0.5 percent increase in May to a reading of 122.6. The index has made steady upward progress since last November when it dipped to 110.2. May’s upward tick was influenced by two factors Read more [...]

Mortgage Delinquencies Fall to 8-Year Low

American homeowners are doing better at paying their mortgages on time, according to the latest data from the Mortgage Bankers Association, with delinquencies falling to their lowest levels in almost 8 years. The MBA's National Delinquency Survey found that delinquencies – loans that were at least one payment behind but not yet in the foreclosure process – fell to a seasonally adjusted rate of 5.54 percent of all mortgage loans in the first quarter of this year, up from 5.68 percent during Read more [...]

Tight Lending Standards Have Erased 4 Million Potential Mortgage Loans

Because lending standards have been ratcheted down so tightly since the beginning of the Great Recession, there have been roughly 4 million “missed” mortgage loans between 2009 and 2013, according to a recent study. The Urban Institute, a policy research group, found that lending standards are tighter today than they were even before the housing boom. If lenders had moved back to their 2001 credit standards when the housing market crashed, there would have been a potential for an additional Read more [...]

Mortgage Money Was More Available in January

It was slightly easier to get a home mortgage loan in January, according to the latest data from the Mortgage Bankers Association, continuing the two-year trend of slowly loosening credit standards. The MBA’s Mortgage Credit Availability Index (MCAI) rose 1.8 percent last month to 117.8 percent. An increase in the index means lenders are relaxing their lending standards whereas a decrease in the index indicates the lending climate is becoming more exclusive. For reference, the index was benchmarked Read more [...]

Mortgage Credit Loosened, New Home Purchase Applications Sank in November

There was more money available for borrowing in November, according to the Mortgage Bankers Association, but Americans did not take advantage of it to buy new homes, with the number of new home loan applications tanking during the same time. "Credit availability increased in November, largely due to the addition of jumbo loan programs that permit cash-out refinancing," said Mike Fratantoni, MBA's Chief Economist in a statement. "Home price appreciation and larger equity cushions have likely made Read more [...]

Lower Rates Unable to Boost Home Buying

Even after long-term mortgage interest rates plunged to an almost 18-month low last week, there was no positive effect on the number of home purchase applications, according to the Mortgage Bankers Assocation. The rock-bottom rates did however push refinance applications higher. Rates fell as worried investors turned to bonds, said MBA chief economist Mike Frantantoni in a statement. "Continuing concerns about weak economic growth in Europe and a few U.S. economic indicators that came in below Read more [...]

Lenders Step In For Secondary Market on Jumbo Loans

Most mortgage banks and lenders traditionally prefer to sell off any home loans they make to the secondary market as soon as they make them. But for one segment of the market – the jumbo loan – lenders are having a change of heart. The secondary market – investors who buy up securities made of mortgages that have been originate by banks and bundled together in groups – has only been able to purchase 2.3 percent of all jumbo loans made in the first half of 2014, according to industry newsletter Read more [...]

Mortgage Origination Volume Inches Up in Latest Week

The number of mortgage applications filed this past week was little changed from the week before, according to the Mortgage Bankers Association, as a rise in refinance requests tempered a decline in home purchase applications. The MBA’s measure of all mortgage application volume - the Market Composite Index – eked out a 0.2 percent increase during the week ended August 29, 2014. That was a result of the Refinance Index growing by one percent, but the Purchase Index falling by 2 percent. Refinance Read more [...]