Posts Tagged ‘sub-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…

Big Banks Warn of Slipping Credit

Posted on June 06, 2016 by Laura Lam

The heads of several big banks warned of looming deterioration in their loan books at a recent industry conference.  In the years following the crisis, asset quality has been on an upswing. Chargeoff rates have declined steadily as banks have worked through bad mortgages and consumers have gotten back on solid ground.  But don’t expect the good times to last, executives said. On both the consumer and commercial sides of the business, a range of economic factors – from rising interest rates to rapid growth in niche lending categories – will likely lead to an increase in problem loans over…

Auto Lending Hits New Record, Refuels Subprime Fears

Posted on December 03, 2015 by Saldutti

U.S. consumers are shouldering record levels of debt to get behind the wheel of an automobile.  In the third quarter, the amount of automotive debt outstanding rose to $1.05 trillion, up $90 billion from a year earlier, according to a new report from the Federal Reserve Bank of New York.  Meanwhile, the number of auto loans in the U.S. climbed to 98.6 million, up from 92.7 million in the third quarter of 2014. Both numbers represented new high-water marks in the New York Fed’s data, which goes back to 2003. The report suggests that the volume of auto loans originated…

Sub-prime Mortgages Continue to Climb

Posted on October 05, 2015 by Saldutti

Mortgage originations to those with subprime credit scores continued to climb steadily over the first 5 months of 2015, according to data from the latest Equifax National Consumer Credit Trends Report.  Each category – first mortgages, home equity installment (HE) loans and home equity lines of credit (HELOC) – showed significant increases in subprime originations over the same period a year ago. The number of first mortgage originations to borrowers with low credit scores was up 30.5%, HE loans was up 29.5%, and HELOCs rose 20.4%. Despite the considerable increases in subprime originations, their overall numbers remain only a small…

Will Sub-Prime Mortgages Make a Comeback?

Posted on February 06, 2015 by Saldutti

The widespread return of the sub-prime mortgage business will be the big event for the mortgage industry in 2015.  This may seem like one of the more outrageous predictions among the wide-spread prognosticating that happens this time of the year.  But it’s actually not that crazy, given how the market turned out in 2014. As origination volume has been shrinking, lenders have been moving down the credit scale. In fact, 31% of closed loans in December 2014 had an average FICO score below 700, according to Ellie Mae loan data. In 2012, that figure was 21%. The segment of FICO scores that…