Tag Archives: Credit Standards

According to a recent study from FICO, U.S. banks expect an end to the household deleveraging trend observed among consumers during the past five years. The company's latest quarterly survey revealed that bankers are anticipating an uptick in customers' demand for credit. Additionally, results showed that the majority of respondents "believe the supply of financing for auto loans, credit cards, new mortgages, small business loans, student loans, and mortgage refinancing will meet or exceed consumer demand over the next six months."

Nearly one-third--29.3 percent, or 20.6 million--of homeowners own their homes free and clear of mortgage debt, according to a recent analysis from Zillow. Zillow also revealed what factors might influence the percentage of homeowners who own their home outright in certain areas. For one, metro areas with lower home values tended to have a higher rate of mortgage-free homeowners since smaller loan amounts can be paid off more quickly. Age and credit rating were also contributing factors.

Purchase originations gained a bit more ground on refinances in November, according to Ellie Mae's latest Origination Insight Report. According to the findings, refinance originations pulled back slightly to represent 68 percent of loans closed, down from 69 percent in the October report. Meanwhile, the share of purchase loans increased to 32 percent from 31 percent previously. Though refinances are slowly losing ground, refinance share remains well above its May level, when refinance and purchase shares were fairly equal.

A study from the American Enterprise Institute (AEI) asserts the Federal Housing Administration (FHA) is inadvertently setting the country up for another housing collapse. In a report titled How the FHA Hurts Working-Class Families and Communities, AEI resident fellow and former Fannie Mae EVP Edward Pinto says an analysis of FHA's books for fiscal years 2009 and 2010 show the agency's "lending practices are inconsistent with its mission and represent a disservice to American working-class families and communities."

Freddie Mac may ramp up repurchase demands with intentions to begin including mortgage loans made in 2004 and 2005 in its repurchase reviews.

The landscape of homeownership has undergone significant changes in recent years: The homeownership rate has declined, but so has the cost burden of owning a home. Both of these trends are most prevalent among young homeowners, according to a recent report from Fannie Mae. The national homeownership rate has declined in each of the past four years, according to the most recent Census data. The decline among those 25 to 44 years of age is more than twice the overall decline.