Posts Tagged ‘prime’

Mortgage Origination Volume Falls 34%

Posted on June 07, 2017 by Laura Lam

Mortgage origination volume fell 34% in the first quarter compared with the fourth quarter, driven mainly by a 45% drop in refinances, according to Black Knight Financial Services’ Mortgage Monitor report.  Overall, lenders originated about $372 billion in first-lien mortgages in the first quarter – the lowest volume seen since the fourth quarter of 2014.  Purchase originations fell 21% compared with the fourth quarter but were up 3.0% compared with the first quarter of 2016, according to the report. An ATTOM Data Solutions report also showed that a little over 1.4 million loans (refinance and purchase loans) were originated in the…

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…

Shifting Gears: Used Cars Popular with Prime Buyers

Posted on September 09, 2016 by Laura Lam

Car buyers with the best credit records are shifting gears, with more of them taking out loans for used vehicles instead of new ones. That’s one of the findings of the latest report on auto loans by Experian Automotive.  “One of the biggest trends we continue to see is the shift into used vehicles by customers with excellent credit,” said Melinda Zabritski, senior director of automotive finance for Experian. In the second quarter of this year, 43.3% of consumers with the highest credit rating who took out an auto loan, did so to buy a used vehicle. That’s 10% more…

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…

Americans Could Get a Boost to Their Credit Score

Posted on March 02, 2015 by Saldutti

Millions of consumers could be lifted out of subprime status and get better loan terms if credit reports and scores were broadened to consider on-time utility and rent payments, according to a study released by Experian.  Experian is advocating for inclusion of non-traditional entries onto consumer credit reports, expanding them beyond loans, credit cards and mortgages. Doing so would allow consumers with “thin” files – those with very few traditional credit accounts – to more easily obtain loans and credit cards. “By adding on-time alternative payment data to credit report files, millions of consumers could gain access to basic financial…