Tag Archives: mortgage

Return Buyers: Many Already Here, Many More to Come

Executive Summary Default rates jumped in 2006 and between then and 2014 nearly 9.3 million borrowers were foreclosed on, received a deed in lieu of foreclosure, or short sold their home.  To date, nearly a million of these former owners have returned to the market and many more of these “return buyers” are already qualified, […]

REALTORS® Reported High Credit Score Requirements Are Easing

Qualifying for a mortgage is still generally difficult, although becoming easier, according to the February 2015 REALTORS® Confidence Index Survey. About 52 percent of REALTORS® providing transaction credit score information reported FICO credit scores in the range of 620-740; in 2013, the share was hovering at about 40 percent. About 2 percent of REALTORS® reported […]

Credit Availability: Trends, Issues, and Implications for First Time Home Buyers

Presentation by Dr. Laurie Goodman, Urban Institute REALTOR® University Speaker Series Dr. Goodman presented an analysis of mortgage credit availability, concluding that lending standards have been excessively tight as a result of reactions to credit problems experienced during the Great Recession: Compared to 2001—a time of normal credit availability—the FICO scores required by lenders in […]

Lenders Pensive, But Warming to Government Overtures

It has become rarer for banks and lenders to hold the loans they originate.  One factor linked to tight credit is the process where loan investors force lenders to buy back mortgages they sold to the investor.  In this case, the investors are the FHA and GSEs.  These buyback requests occur when the FHA, Fannie […]

Lenders Optimistic on Changes

In recent months, two changes were made to government financing that were intended to improve credit availability.  Mortgage lenders who took part in the 4th quarter Survey of Mortgage Originators agreed that both programs, the new 3% down payment loan at Fannie Mae and Freddie Mac as well as the reduction of fees at the […]

Private Capital Returns as FHA Contracts

With the recent changes to the FHA’s pricing, it’s worth reviewing the FHA’s impact on the market. There are a number of ways to measure the FHA’s market share. No matter which method is chosen, the FHA’s market share has fallen significantly since its peak, ceding way to private capital. The FHA has two roles: […]

REALTORS® Continue to Report Difficulty in Obtaining Mortgages

Credit continued to flow to those with high credit scores, based on information provided by REALTORS® in the October 2014 REALTORS® Confidence Index Survey:  http://www.realtor.org/reports/realtors-confidence-index.   Almost half of  REALTORS® providing transaction credit score information reported FICO credit scores of  740 and above; with normal credit conditions, approximately 40 percent of buyers would have credit scores […]

Lenders Tighten Modestly in the 3rd Quarter

In the 3rd quarter as in earlier surveys, respondents to NAR’s Survey of Mortgage Originators were asked about impacts of the Qualified Mortgage rule on the mortgage lending market.  However, this quarter the survey expanded to measure lender expectations of market conditions and capacity as well as current policy issues including changes at the Rural […]

QM Still a Concern

Some aspects of the qualified mortgage rule continue to weigh on the mortgage market.  According to NAR’s Survey of Mortgage Originators, despite overtures from the CFPB and modestly fewer issues, lenders tightened some restrictions in the 3rd quarter. The share of respondents that had issues closing mortgage(s) due to some facet of the qualified mortgage […]

Fannie and Freddie to Back Three Percent-Down Loans, Safely

Recently the FHFA announced that it would begin to allow the GSEs to finance loans with as little as 3% down payments.  This news was received with mixed reviews.  Some view it as an improvement in access for entry-level buyers while others see it as a step down the path of loose lending that brought […]