Archive for the ‘Taxes’ Category

Credit Card Delinquencies on the Rise

Posted on October 18, 2017 by Laura Lam

Credit card delinquency rose for the third straight month in September, data from JPMorgan Chase & Co. and card issuer Discover Financial Services suggested.  The data add to signs that U.S. consumers are struggling amid rising household debt, after bank results last week pointed to an increase in provisions for future losses. September delinquencies for JPMorgan rose 1.22%, while those at Discover Financial were up 1.64% from August. Those at Bank of America also rose 1.56% — the second rise in three months.  Credit quality at several banks appears to be deteriorating as lenders target consumers with worse credit ratings to…

Boomers Struggle to Pay Off Mortgages Before Retirement

Posted on October 17, 2017 by Laura Lam

While outright homeownership increased among Baby Boomers after the last recession, they still lag previous generations, and may never catch up, according to the Fannie Mae Economic and Strategic Research Group’s latest Housing Insight Series.  Older generations such as Baby Boomers have criticized Millennials for waiting longer than their generation to buy a home, however even Boomers are failing to keep up with the pace set by the generation before them. Baby Boomers are much less likely to own their home outright than the generations before them and may struggle to catch up before reaching retirement age.  According to the report, “The leading…

Consumer Delinquencies Improve in 2Q

Posted on October 16, 2017 by Laura Lam

Delinquencies in closed-end loans held steady in the second quarter as bank card delinquencies fell and home-related categories continued their return to normal levels, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin. Overall, delinquencies fell in 8 of the 11 individual consumer loan categories.  The composite ratio, which tracks delinquencies in 8 closed-end installment loan categories, remained at 1.56% of all accounts – well below the 15-year average of 2.16%. “Delinquencies remain below historical levels as consumers continue to show great command of their finances,” said James Chessen, ABA’s chief economist. “The outlook remains very positive,…

PNC Has the Edge in Bank Customer Satisfaction

Posted on October 12, 2017 by Laura Lam

National retail banks have invested heavily in digital transformation and marketing initiatives designed to position themselves as the best one-stop shops for all consumer banking, credit card, loan and investment needs. When it comes to real-world customer satisfaction, though, the biggest drivers of success are low problem incidence and consistency across all lines of bank business, according to the inaugural J.D. Power 2017 National Bank Satisfaction Study. In the complex field of competition among the nation’s biggest banks, Pittsburgh-based PNC just edged out New York behemoth Chase Bank – the nation’s largest bank with more than $2 trillion in assets…

Mortgage Lending Getting Riskier

Posted on October 09, 2017 by Laura Lam

During the second quarter this year, the risk in mortgage lending inched up as the market shifted toward an increased share of investor loans, according to the Q2 2017 Housing Credit Index released by Core Logic.  The index increased to 117 during the second quarter, up a full 20 points from the second quarter last year. However, even after this increase, the credit risk in the second quarter is still within the levels seen from 2001 to 2003, a timeframe that is considered to be a normal baseline for credit risk. The chart shows that while mortgage risk remains at…

CMBS Delinquencies Continue to Decline

Posted on October 05, 2017 by Laura Lam

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, recently released its September 2017 US CMBS Delinquency Report.  For the third straight month, the Trepp CMBS Delinquency Rate was pushed lower. The delinquency rate for US commercial real estate loans in CMBS is now 5.40%, a decrease of four basis points from August. The September 2017 rate is now 62 basis points higher than the year-ago level. “After more than two years, the ‘wave of maturities’ has been reduced to a mere ripple,” according to Manus Clancy, Senior Managing…

Millennials Over-Extended and Frustrated with Home-Buying Process

Posted on October 04, 2017 by Laura Lam

Millennials poured some $514 billion into the U.S. housing market over the last year as the largest generation of home buyers, Zillow reported.  But new survey data shows their home-ownership aspirations are stymied by affordability issues, frustration with the buying and selling process, and a cutthroat housing market. More than half of young buyers (53%) make multiple offers to buy their first home, and only 2 in 5 millennials (39%) are able to make the recommended 20% or more down payment.  The results of the Zillow Group Report on Consumer Housing Trends 2017 show how the nation’s highly competitive housing…

A Tale of Two Hurricanes: Equity Disparity in Harvey/Irma Housing Markets

Posted on October 03, 2017 by Laura Lam

The majority of borrowers impacted by Hurricane Harvey have a significant amount of equity, while about 350,000 in Hurricane Irma disaster areas have either limited or negative equity, according to Black Knight Financial Services.  Less than 0.5% of borrowers impacted by Hurricane Harvey were in negative equity positions before the storm hit, and less than 4% have below 10% equity.  In contrast, of borrowers in counties impacted by Hurricane Irma, 5.3% still owe more than the value of their home, and an additional 5.6% have less than 10% equity.  Nationwide, 1.4 million borrowers, or 2.8% of homeowners with mortgages, had negative equity in…

Mortgage Fraud Risk on the Rise

Posted on September 28, 2017 by Laura Lam

An estimated 13,404 mortgage applications, representing 0.82% of all applications, filed during the second quarter contained indications of fraud, according to the Mortgage Application Fraud Risk Index released by CoreLogic.  The second-quarter figure is a 16.9% increase from the 12,718 mortgage applications, comprising 0.70% of total applications, that contained indications of fraud recorded in the second quarter of 2016. By state, mortgage application fraud risk was highest in New York, pushing it to overtake Florida as the state with the highest risk. After holding the top spot for the last several years, Florida is now in third after posting a…

Homeowners Continue to Regain Equity

Posted on September 27, 2017 by Laura Lam

Homeowners with mortgages saw an overall gain of $766 billion in their home equity during the second quarter from the year-ago period, or an increase of 10.6%, according to the second-quarter home equity analysis released by CoreLogic.  On average, the year-over-year gain is $12,987 for each homeowner. The biggest increases were seen in Western states as higher home prices drove equity gains. Homeowners in Washington saw average home equity gains of about $40,000, while California homeowners gained an average of $30,000 in home equity. The quarter also posted a year-over-year decrease in the number of homes with negative equity. During the period, 2.8 million homes – representing…