Posts Tagged ‘loan’

Foreclosure Activity Hits Post-Recession Low in April

Posted on June 08, 2017 by Laura Lam

ATTOM Data Solutions released its April 2017 U.S. Foreclosure Market data, which shows foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 77,049 U.S. properties in April, down 7% from the previous month and down 23% from a year ago to the lowest level since November 2005. “Foreclosure activity continued to search for a new post-recession floor in April thanks in large part to the above-par performance of mortgages originated in the past 7 years,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Meanwhile we are seeing an elevated share of repeat foreclosures…

Mortgage Origination Volume Hits 5-Year High

Posted on June 01, 2017 by Laura Lam

First lien originations jumped in 2016 to $2.1 trillion, the highest point since 2012, according to a report from the Urban Institute.  Of these originations, the share of portfolio originations increased to 30.9%, up from 30.2% in 2015, the report shows. The GSE share increased to 45.9%, up from 45.7% the previous year and the FHA and VA share decreased to 22.8%, down from 23.3% in 2015. The chart shows, unlike pre-crisis years, private-label securities no longer hold a significant share in the market. In both 2015 and 2016 the share of private-label securities totaled well below 1%. But despite the increase…

Home Equity Loans on the Rise

Posted on April 11, 2017 by Laura Lam

Mortgage lenders, along with borrowers, are starting to welcome home equity lines of credit back into the market after the loan product began to disappear in the wake of the financial crisis.  Given their growing prominence in the market, a new report from the American Bankers Association’s Consumer Credit Delinquency Bulletin provides a current pulse on the health of the product by looking at delinquencies.  The report looked at both closed-end loans and open-end loans, since home equity loans fall into both categories. Bankrate explains that there are two types of home equity loans: term, or closed-end loans, and lines of credit, open-end loans.  A home equity…

Cybercriminals Target Online Lenders

Posted on February 22, 2017 by Laura Lam

Financial organizations are being increasingly targeted by cybercriminals looking to capitalize on alternative lending and payment models. Although the entire financial services industry is a hotbed for cyber crime, online lenders are particularly vulnerable. They differentiate themselves based on their ability to process loan applications quickly – making them a soft target than some of the larger established banks.  According to the latest ThreatMetrix Cybercrime Report, 1 million cyberattacks targeted online lending transactions throughout 2016, and this number will continue to grow in 2017. The total value of these transactions is estimated at approximately $10 billion. This emerging trend in online lending…

FHA to Increase Loan Limits for 2017

Posted on December 12, 2016 by Laura Lam

The Federal Housing Administration will increase its national loan limit “floor” to $275,665 in 2017 from $271,050. This limit is set at 65% of the national conforming loan limit, which the Federal Housing Finance Agency said would expand to $424,100.  The agency also said that its loan limit “ceiling” in high-cost areas would rise to $636,150 from $625,500. The ceiling figure is 150% of the national conforming loan limit. The loan limit “floor” applies to areas where 115% of the median home price is less than 65% of the national conforming loan limit. Wherever the loan limit is higher than…

Subprime Decline: Millions of Consumers Boost Scores

Posted on July 11, 2016 by Laura Lam

The share of U.S. adults with credit scores that are considered “subprime” fell to 20.7% in April, the 6th consecutive year-over-year decline and the lowest level since at least 2005, when FICO started tracking the data. The ranks of subprime borrowers swelled during the financial crisis, peaking at 25.5% in 2010 as mortgage payments, credit-card bills and other debts went unpaid. The improving trend could bring relief to big banks, which tightened credit standards in the wake of the crisis. An increase in more-creditworthy borrowers could allow them to increase lending without lowering standards. Banks are desperate for revenue growth since the same…

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…

Consumer Borrowing Surges at Fastest Pace Since 2001

Posted on June 02, 2016 by Laura Lam

Household borrowing surged in March at the fastest pace since November 2001 as financing for automobiles picked up and Americans’ outstanding credit-card debt soared.  The $29.7 billion increase, or an annualized 10%, exceeded the highest estimate in a Bloomberg survey and followed a revised $14.1 billion gain the prior month, according to Federal Reserve figures.  Revolving credit, which includes credit-card spending, posted the biggest annualized advance since July 2000. With employers still hiring at a decent clip, consumers may be growing more comfortable carrying bigger credit-card balances and taking out car loans. The pickup in March helped drive up household borrowing…

Businesses Fall Behind on Their Loans

Posted on May 25, 2016 by Laura Lam

The Board of Governors of the Federal Reserve released its delinquency and charge-off data for all commercial banks in the first quarter – and it’s very sobering data.   While delinquencies on the consumer side appear quite positive, delinquencies on the business side are spiking. Consumer loans and credit card loans have been hanging in there so far. Credit card delinquencies rose in the second half of 2015, but in Q1 2016, they ticked down a little. Mortgage delinquencies are low and falling. When home prices are soaring, no one defaults for long; you can sell the home and pay off your mortgage….

Lenders Tighten Standards on Loans to Oil/Gas Industry

Posted on May 10, 2016 by Laura Lam

Lenders in the U.S. tightened standards and restructured loans for businesses in the oil and gas sector in the opening months of the year amid slumping natural resource prices, according to a Federal Reserve survey of senior loan officers.  Crude oil prices only recently have shown signs of firming after an extended slump. A revival in prices, if it lasts, may be too late for many firms. According to the Fed survey, most domestic and foreign banks expect delinquency and charge-off rates on loans to firms in the oil and natural gas drilling or extraction sector to deteriorate over the…