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Tag Archives: Credit Standards

Survey: Credit Loosening Everywhere Except Mortgages

According to the OCC survey, 92 percent of surveyed banks originated residential real estate loans in 2014, and a full 20 percent reported tightening their standards regarding who can attain these loans. Seventy percent reported no changes in their standards, leaving a comparatively slight 10 percent of institutions claiming they eased their standards for residential mortgages.

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Mortgage Denials Point to Much Tighter Market

In a report released Tuesday, researchers at the Urban Institute (UI) say that previous "traditional" observations of mortgage denial rates (calculated by dividing the number of denied mortgages by the total number of applications) provide an inaccurate look at credit availability because they include applicants with near-perfect credit profiles—those who are unlikely to be turned down for most products, in other words.

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Credit Challenges Continue for Self-Employed Borrowers

In a study of borrower profiles and lender behaviors, Zillow found that self-employed loan applicants receive only six loan quotes for every 10 received by non-self-employed borrowers. That's even worse than in June 2011, when the ratio was seven for every 10.

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New Index Refutes First-Time Homebuyer Numbers

According to a new index released Wednesday by the American Enterprise Institute's (AEI) International Center on Housing Risk, an estimated 46 percent of mortgages made from October 2013 through October 2014 were for first-time homebuyers. Looking only at government-guaranteed loans, that share is closer to 52 percent.

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Mortgage Risk Levels Remain Elevated in October

The American Enterprise Institute's (AEI) National Mortgage Risk Index for home purchase loans stood at 11.4 percent in October, little changed from the previous three-month average but nearly 1 percentage point above its year-ago level, the group said Monday.

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Refinance Share Rises to Seven-Month High on Lower Interest Rates

In its latest Origination Insight Report, released Thursday, mortgage technology provider Ellie Mae reported that refinancing activity accounted for 40 percent of overall mortgage volume in October, marking the highest level since March. Despite the increase in demand, lenders were able to improve their closing time on refinance loans.

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BofA Chief: Bank Has No Plans to Loosen Mortgage Standards

Speaking at an investor conference in New York, BofA chief Brian Moynihan said his firm—frequently listed among the top five mortgage lenders in the nation—has little incentive "to try to create more mortgage availability where the customers are susceptible to default."

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First-Time Buyer Share Hits 27-Year Low

In its annual survey of homebuyers and sellers, the National Association of Realtors (NAR) found that only about 33 percent of home purchases in the last year were made by first-time buyers, down from 38 percent in last year's survey and the long-term average of 40 percent.

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Mortgage Demand Down as Lending Standards Steady

The Fed's Senior Loan Officer Opinion Survey, which covers a three-month period ending in October, shows credit standards on prime mortgages remained basically steady at 83 percent of reporting banks over the last few months. Of the nearly 14 percent that reported easing their lending criteria somewhat, the vast majority were large banks with assets of $20 billion or more, with only one smaller institution dialing down its standards.

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Mortgage Risk on the Rise

The American Enterprise Institute's (AEI) National Mortgage Risk Index, released Monday by the group's International Center on Housing Risk, rose to 11.43 percent in September, little changed from the revised average of the previous three months and nearly 1 percentage point higher than a year ago. In keeping with recent trends, the index measuring risk for FHA loans was the highest, sitting at 23.99 percent.

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