Category Archives: Mortgage Loan

Issuance of U.S. home-loan bonds without government backing more than tripled to $7.4 billion this year, according to a report from Deutsche Bank. Notes sold in so-called non-agency securitizations of new loans, all of which were prime ‘jumbo’ mortgages, totaled $3.2 billion; sales tied to older mortgages reached $2.4 billion; and securities backed by non-performing debt were $1.8 billion. Deutsche Bank analysts also wrote that new issuance of all non-agency securities next year should be a “few billion over $20 billion” when including potential deals involving rental homes. The author […]

Most loan types increased in default rates during October, with a surge in first mortgage default rates, according to S&P Dow Jones/Experian Consumer Credit Default Indices. The national composite increased to 1.55% in October, the first time in nine consecutive months, compared to 1.46% from September. The first mortgage default rate increased 1.47% compared to 1.36% from the previous month. Second mortgage default rates also rose to .65% compared to .64% last month. “The second mortgage is marginally up by 1 basis point from its September rate of 0.64%, the lowest rate […]

Mortgage application filings for the week ending Nov. 16 declined 2.2%, the Mortgage Bankers Association said Wednesday. The refinance index fell 3% from the previous week while the purchase index on a seasonally-adjusted basis increased 3% from a week earlier. Overall, refinancing activity continued to make up 81% of all loan applications, unchanged from the previous week. Adjustable-rate mortgages grew in popularity, now representing 4% of all loan applications. The average contract rate on a 30-year, fixed-rate mortgage with a conforming loan limit increased to 3.54% from 3.52%. The average […]

The average FICO score for first-lien loans reached 750 in October, a rise from 741 in August, according to Ellie Mae, an analysis that encompasses about 20 percent of all loan applications in the U.S. Meanwhile, the average FICO score on applications that were denied by lenders was 706. That is up from 700 compared to year ago levels and 697 in September 2011. Last week, Federal Reserve Chairman Ben Bernanke said that tighter lending conditions are contributing to a housing slowdown. He said that some tightening in mortgage lending […]

The Federal Housing Administration plans to raise its mortgage fees next year in order to help avoid a taxpayer bailout, the Obama administration announced. A report last week revealed the FHA, which insures mortgages, faces a $16.3 billion deficit due to a rise in mortgage delinquencies over the last few years, particularly among loans that originated during the housing bubble from 2007 through 2009. FHA says it plans to raise its premiums on loans it guarantees by 10 basis points, which equates to about $13 per month extra to borrowers’ […]

Fannie Mae announced that an improving housing market has helped it post a $1.8 billion profit during the third quarter, and as such, the mortgage giant will not be needing to ask for more aid in taxpayer bailout money. A year prior, Fannie Mae reported a loss of $5.1 billion. “We are seeing signs of sustained improvement in housing and our actions to support the housing recovery have generated strong financial results in 2012,” says Timothy Mayopoulos, Fannie Mae’s chief executive. Rising home prices and lower credit losses are helping […]

Under signs of a growing economy and low inflation, fixed-rate mortgages inched down this week and are hovering near their record lows, Freddie Mac reports in its weekly mortgage market survey. Here’s a closer look at average mortgage rates for the week ending Nov. 1: 30-year fixed-rate mortgages: averaged 3.39 percent, with an average 0.7 point, dropping from last week’s 3.41 percent average. The record low for the 30-year mortgage, set in recent weeks, was an average of 3.36 percent. 15-year fixed-rate mortgages: averaged2.70 percent, with an average 0.7 point, […]

Only 30 percent of borrowers who defaulted on their mortgage in 2001 had returned to the housing market within 10 years, finds a new study conducted by researchers at the Federal Reserve Bank of San Francisco. The study evaluated how long it takes borrowers to re-enter the housing market following a default on a previous mortgage. Only 10 percent of home owners with a “serious delinquency” were able to qualify for a mortgage within 10 years after a default, according to the study. The access to credit is the main […]

Thousands of home owners with Wells Fargo mortgages received a sweet surprise in the mail recently: Refund checks of between $2,000 to $5,000. Some Wells Fargo borrowers with Federal Housing Administration-backed loans received the refund checks because they had previously paid unnecessary mortgage-insurance related fees. Once home owners cash the refund checks, they stand to give up their right to sue Wells Fargo on the grounds that they were placed into FHA-backed mortgages unfairly, HousingWire reports. “During the course of our own internal review, we identified a small group of borrowers […]

The Department of Veterans Affairs announced it has reached a major milestone: It has guaranteed 20 million home loans since launching its loan program in 1944. “The 20 millionth VA home loan is a major milestone and is a testament to VA’s commitment to support and enhance the lives of Veterans, Service members, their families and survivors,” says Allison A. Hickey, VA’s undersecretary for Benefits. “As a result of their service and sacrifice, as a group, they prove to be disciplined, reliable, and honorable—traits that are ideal for this kind […]