News

Overall mortgage delinquency rates were down in the month March, according to a recent report. Most rates were at a position lower than what they have been in over 10 years, but early-stage delinquencies saw a 17 year low. According to the report, this can be attributed to stringent post-crisis underwriting standards as well as better fundamentals.

Recently, the April 2017 Consumer Credit report was released, revealing all of the outstanding credit extended to individuals for household, family, and other personal expenses, excluding loans and real estate for the past month. April marked the smallest increase in consumer borrowing in six years. The Federal Reserve reported total consumer credit rising 2.6 percent, increasing the $8.2 billion in April compared to March’s revised $19.5 billion.

The Supreme Court ruled Monday in a unanimous decision that the Fair Debt Collection Practices Act did not extend its reach to entities that purchase defaulted loans on the secondary market. The petitioners brought their case in front of the Supreme Court in an appeal of the 4th Circuit Court ruling in favor of the respondent. Justice Neil Gorsuch delivered his first opinion since his conferral to the Court.

Without swift intervention, millennials could become “a lost generation of homeownership,” according to Dr. Ben Carson, Secretary of the U.S. Department of Housing and Urban Development. In his opening remarks at the National Housing Symposium in Washington, D.C. on Friday, Carson called homeownership a “lost dream” for many millennials—even ones who are credit-worthy. Current and upcoming efforts by the FHA and Fannie Mae will likely open more doors for millennial buyers, Carson said.

Today’s ever-increasing home prices have made their mark: Buying a home is now unaffordable in more than half of the nation’s biggest markets. And in California? The straits are even more dire. According new analysis, the median price of homes for sale is historically higher than average in the majority of America’s largest metros, meaning buyers need to devote a larger-than-expected share of income toward mortgage payments and, more significantly, down payments.

Although some recent reports are saying that homeownership is struggling, newer “super low down” loans are beginning to become more popular with millennials. It is estimated that, on average, it takes young people nearly a decade to save for a traditional 20 percent downpayment. In response, some lenders are implementing 3 percent equity mortgages.

CalyxSoftware announced that registration is now open for CalyxVision 18, the company’s second national user conference. CalyxVision offers the unique opportunity for lenders and brokers to receive Calyx software training. Attendees will learn practices from Calyx software experts to help increase their company’s productivity and maximize profitability.

Next Friday, the Department of Housing and Urban Development will release their May New Residential Construction Activity report. Last month, new privately owned residential construction permits fell 2.5 percent, from 1,260,000 to 1,229,00. You can see more on this plus what’s to come next week in The Week Ahead.

Local job markets have improved and mortgage rates are at a historic low, however U.S. homeownership rates are stagnant at a 50-year low. The main barriers experts are seeing, according to a recent report, are post-foreclosure stress disorder, mortgage availability, the growing burden of student loan debt, single-family housing affordability, and single-family housing supply shortages. Industry professionals explain what needs to be done in order for this to change.

Recent data hints that the 20 percent downpayment may not be entirely necessary anymore. First-time homebuyers are increasingly pursuing different vehicles to obtain their dream of being a homeowner. They also account for almost half the total homes purchased in the first quarter of 2017, a number which continues to rise.