Washington Post, Aug. 29, 2018–Kenneth R. HarneyFrom January through March of this year, the average credit score for new-home purchase loans was 672, according to FHA data. By contrast, the average was 701 during the same period in 2011. Refinancings where borrowers replace their existing FHA loans with new ones carried average FICO scores of 709 in mid-2012; earlier this year, that had plummeted to 661.
Category: Top National News
Second Quarter Loan Originations Pull Big Profits for Mortgage Banks
National Mortgage News, Aug. 29, 2018–Paul Centopani (subscription)With spring homebuying in bloom, the second quarter brought profits to independent mortgage bankers after going negative for the second time ever, according to the Mortgage Bankers Association.
Fight over Unpopular Fair-Lending Standard Rages Long after Court Case
National Mortgage News, Aug. 29, 2018–Hannah Long (subscription)More than three years after a Supreme Court ruling validated “disparate impact” as a legal argument in fair-lending cases, the banking industry and housing advocacy groups are still at odds over how to interpret the decision.
CMBS Delinquency Lowest in 9 Years
Mortgage Daily, Aug. 29, 2018A more than 20-basis-point drop in delinquency on securitized commercial real estate loans left the rate at its lowest level in nine years, said Moody’s Investors Service.
Short Supply Pushes Home Buyers To Tipping Point
Mortgage Daily, Aug. 29, 2018An ongoing inadequate supply of residential properties for sale has pushed prospective homebuyers to a tipping point and driven down year-over-year listings seven months in a row, the National Association of Realtors said.
U.S. Second-Quarter GDP Growth Raised to 4.2 Percent
Reuters, Aug. 29, 2018–Lucia MutikaniU.S. economic growth was a bit stronger than initially thought in the second quarter, notching its best performance in nearly four years and putting the economy on track to hit the Trump administration’s goal of 3 percent annual growth.
Fitch Says Non-Bank Lenders May Face Further Margin Squeeze
Mortgage Professional America, Aug. 28, 2018–Steve RandallNon-bank mortgage lenders could face further pressure on margins and more industry consolidation according to Fitch Ratings.
U.S. Bank Regulator Moves to Modify Lending Rules for Poorer Communities
Wall Street Journal, Aug. 28, 2018–Lalita Clozel (subscription)The Office of the Comptroller of the Currency took the first step Tuesday toward rewriting rules for lending in lower-income neighborhoods, an effort that could allow institutions to redirect billions of dollars spent on loans and investments.
FHFA Proposes New Rule to Reduce Compliance Burden
HousingWire, Aug. 28, 2018–Kelsey RamirezThe Federal Housing Finance Agency announced Tuesday its new proposed rule which would amend its rule on golden parachute payments in order to reduce compliance burdens.
Moody’s to Pay $16.25 Mln to Settle SEC Charges
Reuters, Aug. 28, 2018–Katanga JohnsonThe Securities and Exchange Commission said on Tuesday that it charged Moody’s Investor Service with failing to clearly define and consistently apply credit-rating symbols in a first-ever ratings-related enforcement action by the regulator.