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As federal housing agencies push mortgage firms to lend to more consumers, a recent survey indicates most lenders feel the regulatory risk is still too great for them to lower their standards. In a poll conducted by the Collingwood Group throughout October, 71 percent of mortgage lenders said the odds of them lowering credit score requirements for borrowers are between somewhat and extremely unlikely. Despite steps by policymakers to ease originators’ concerns and the strain some companies are feeling as the mortgage market shrinks, one anonymous respondent commented that quote--It isn't worth the business risk to relax their lending criteria.
Out of all the regulatory worries contributing to lenders' anxiety, the Consumer Financial Protection Bureau's mortgage rules are the biggest concern, with 74 percent of respondents pointing to the bureau as their main worry. In their views of the CFPB, many originators questioned whether the bureau's rules are actually in American borrowers' best interests, and some said they feel the agency is too focused on finding faults rather than offering guidance. Also on the list were Fannie Mae and Freddie Mac, some Federal Housing Administration program requirements, and state regulations, with each earning single-digit shares of responses.
Growing home values have spurred more consumers to take out home equity lines of credit, according to a new survey. Findings released last month from real estate data firm RealtyTrac show HELOC lending jumped more than 20 percent from June 2013 to June 2014, aided by improvements in home equity and housing confidence nationwide. According to a newly released TD Bank survey, 53 percent of homeowners polled said the value of their home has increased in the past few years, giving them more equity to pull from. While nearly half of HELOC consumers acquired their loan primarily for home renovations, a number of other needs also served as motivators, including debt consolidation, major home purchases, emergency funds, and education costs.
