Posts Tagged ‘borrower’

Texas Delinquencies Jump 16% After Harvey

Posted on September 26, 2017 by Laura Lam

Mortgage delinquencies in areas affected by Hurricane Harvey last month were 16% higher than in July, according to Black Knight Financial Services.  More than 6,700 new 30-day delinquencies stem from the hurricane and 1,000 borrowers already 30 days past due missed another payment, said Black Knight. Despite the spike in Harvey-related delinquencies, nationally on loans not yet in foreclosure they were flat compared with July, rising only 0.72% to 3.93%, and compared with a year ago the rate is 7.27% lower than it was last August. Texas is now among the 5 states that have seen the most deterioration in their…

Consumer Defaults Predicted to Rise in 2017

Posted on April 24, 2017 by Laura Lam

About 17% of all U.S. consumers are likely to default on a loan payment over the next year, according to a recent report from UBS. More interesting, perhaps, is who these defaulters are.  The UBS Evidence Lab reports that the group’s profile is “middle and upper income, younger, male, urban, and concentrated in the coastal regions.” The UBS researchers also found evidence that defaults on auto loans are likely to spread to more non-prime defaults on credit cards and personal loans. About 16% of all auto loans outstanding are subprime, amounting to $179 billion out of total auto loans of…

Tappable Equity Hits 10-Year High

Posted on April 05, 2017 by Laura Lam

An annual home price appreciation of 5.5% during 2016 helped to increase the number of mortgage holders with tappable equity to 39.5 million, according to new data from Black Knight Financial Services (BKFS). More than two-thirds of the tappable equity level belongs to borrowers with current interest rates below today’s 30-year interest rate. Tappable equity – defined as the amount of lendable equity available to a borrower before hitting a combined loan-to-value ratio of 80% – reached the $4.7 trillion mark last year. An equity growth of $570 billion throughout 2016 pushed the total equity level to its highest level since…

Lenders Surprised by Trended Mortgage Data

Posted on June 15, 2016 by Laura Lam

When a consumer refinances or pays off her house in preparation for moving, you might expect her to reduce other debts to help get the new mortgage application approved.  But the average prime-credit mortgage borrower doesn’t do this, according to a new report from TransUnion based on trended credit data.  Rather, these borrowers’ credit card usage usually increases a month before closing on a new home loan, compared to 6 months before the old mortgage’s payoff. Trended credit data includes more details about consumer use of credit over time than home mortgage lenders have typically looked at. These include payment and payoff…

Banks Consolidate; Local Lenders Vanish

Posted on April 26, 2016 by Laura Lam

Where have all the bankers gone?  The continental lenders, with their corner branches – Wells Fargo and PNC, Citizens, TD and Bank of America – still compete with JPMorgan Chase, Capital One, and other branchless brands for Philadelphia’s corporate and mass consumer clients.  But the local banks that focused on local businesses and their owners have consolidated, to cut costs and squeeze profits from low interest rates and weak loan demand in this slow-growing region. BB&T, from North Carolina, has taken over National Penn and Susquehanna. Souderton- based Univest is absorbing Fox Chase Bank. Philadelphia’s East River Bank agreed to sell to Downingtown’s DNB.  Beneficial Bank, last of the multibillion-dollar banks once based in Philadelphia, made $93 million in…