Posts Tagged ‘loan’

Best and Worst States for Consumer Credit Scores

Posted on October 30, 2017 by Laura Lam

Consumer credit varies nationally due to regional variations in income and the cost of living.  According to a new study from LendEDU and Experian, the Northeast had the highest average credit score (694). The Midwest (693), Pacific (691), and Rocky Mountain (690) regions followed closely behind. The Southeast (668) and Southwest (662) regions had the lowest credit scores on average.  The best average state scores are roughly 7% higher than the national average, while the worst states are about 7% lower. Vantage Scores were used for the rankings. Scores of 700 and above are considered good, and below 650 is…

Foreclosure Activity Plunges to 11-Year Low

Posted on October 23, 2017 by Laura Lam

Foreclosure activity hit an 11-year low in this year’s third quarter, as an improving economy and stricter mortgage standards helped stabilize the housing market to pre-2008 levels.  ATTOM Data Solutions released a report this week revealing that third-quarter foreclosure activity is down 13% from the previous quarter and 35% from a year ago. The Q3 2017 U.S. Foreclosure Market Report showed a total of 191,824 U.S. properties with foreclosure filings, such as default notices, scheduled auctions or bank repossessions. This determined foreclosure activity in Q3 2017 was 31% below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1…

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…

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…

Purchase Lending Hits 10-Year High

Posted on September 12, 2017 by Laura Lam

During the second quarter of 2017, purchase originations jumped significantly even as refinances shrank, according to Black Knight Financial Services’ latest Mortgage Monitor report.  First lien mortgages jumped 20% from the first quarter and 16% from last year to $467 billion in the second quarter. During the second quarter, refis fell 20%, or $37 billion, from the second quarter to 31% of the market share of originations, the lowest level in 16 years.  However, the 57% quarterly surge in purchase originations more than made up for the fall in refis. This is an increase of 6% from last year to $321…

Banks Cut Back on Risky Lending

Posted on August 24, 2017 by Laura Lam

For the first time since 2012, lenders are making fewer subprime loans, according to a new report from TransUnion.  Subprime loans are those made to consumers with lower credit scores and usually carry less-favorable terms than prime loans. In most cases they carry higher interest rates and may have other disadvantages. The TransUnion report found 4.63 million consumers received a subprime auto loan or lease, personal loan, or credit card in the first quarter of this year. That compares to 4.89 million in the first quarter of 2016. “Across product lines, we saw a decline in subprime originations at the beginning…

Mortgage Credit Availability at Highest Level since 2016

Posted on July 21, 2017 by Laura Lam

Credit availability remained historically tight in the first quarter of 2017, but increased slightly from the previous quarter to the highest level since 2016.  The Housing Credit Availability Index (HCAI)  from the Housing Finance Policy Center shows mortgage credit availability increased to 5.4 in the first quarter. This is up from 5.2 in the fourth quarter.  However the chart, which uses data from eMBS, CoreLogic, HMDA, IMF and the Urban Institute, shows this is still extremely tight compared to historical standards. The HCAI measures the percentage of home purchase loans that are likely to default, go unpaid for more than 90 days past their due date….

Mortgage Risk Hits Highest Level in 2 Years

Posted on July 12, 2017 by Laura Lam

The frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications increased in May to levels not seen since 2015, according to First American Financial Corp.  The frequency of defects, fraud and misrepresentations increased 2.5% in May, according to the Application Defect Index. This is an increase of 13.7% from the year before. “The Loan Application Defect Index is now reaching levels of risk not seen since 2015,” First American Chief Economist Mark Fleming said. “While risk is growing in both purchase and refinance transactions, it is important to recognize that loan application defect, fraud and misrepresentation…

Consumer Delinquencies on the Rise

Posted on July 06, 2017 by Laura Lam

Delinquencies in both open- and closed-end loans rose in the first quarter of 2017, according to the ABA Consumer Credit Delinquency Bulletin released today.  The rise in closed-end delinquencies was driven by an uptick in late payments on auto loans, the report noted. The composite ratio, which tracks delinquencies in the closed-end installment loan categories, rose 5 basis points to 1.56% of all accounts, but remained well below the 15-year average of 2.17%. Delinquencies in indirect auto loans rose 8 basis points to 1.83% of all accounts, while direct auto lending delinquencies increased by 9 points to 1.03% of all accounts….