Foreclosures | Mortgages | Financing
During each of the past five months, the risk of fraud on applications for a residential loan has moved higher. The Dakotas are emerging as a troubled region.
The Loan Application Defect Index, an estimate of mortgage loan defect rates over time, came in at 81 for the month of April 2017.
Compared to the preceding month, the index, which represents the frequency that information submitted in residential loan application has defects, rose 3 percent.
From:: Financing
Quarterly home-lending volume fell to the lowest level since 2014. Growth in purchase financing, meanwhile, slowed.
From Jan. 1, 2017, through March 31, American mortgage originators generated $372 billion in first-lien loan production.
The first quarter turned out to be the slowest three-month period for mortgage lenders since the final quarter of 2014.
From:: Financing
As expected, new mortgage business turned sharply lower during the week that included Memorial Day. Business unexpectedly sank, though, from a year ago.
Mortgage Daily’s U.S. Mortgage Market Index, an indication of upcoming originations based on OpenClose rate-lock volume, was 116 in the week ended June 2.
Compared to the previous week, the index — which is not adjusted for seasonal variations — fell 25 percent. It was the second consecutive week that it declined.
From:: Financing
Performance on securitized commercial real estate loans was worse in any month since 2015. Maturing loans and shrinking outstandings were blamed.
Thirty-day delinquency, including foreclosures, on loans included in commercial mortgage-backed securities was 3.14 percent as of April 30.
The last time that CMBS loan performance was that weak was in December 2015, when the past-due rate worked out to 3.43 percent.
From:: Financing
Wells Fargo Home Mortgage has shaken up its retail sales management. An insider has been promoted to lead the retail sales organization.
A statement Thursday from the Des Moines, Iowa-based firm indicated that Greg Gwizdz, Drew Collins and Sandy Streator are no longer with the company.
Gwizdz was head of retail mortgage sales, while Collins was the Pacific division sales manager, and Streator was regional sales manager for Nevada and Oregon.
From:: Financing
Aside from 16-year low unemployment, monthly jobs data indicate weak labor conditions — driving down rates. But staffing expanded in the mortgage industry.
Data reported Friday by the Census Bureau indicate that the U.S. unemployment rate was 4.3 percent in May — the lowest it’s been since May 2001.
Unemployment stood at 4.4 percent as of one month previous, according to the BLS, while it came in at 4.7 percent as of the same month last year.
From:: Financing
The quarterly performance of real estate loans secured by commercial properties improved for most investor types. Just securitized loans have worsened from a year ago.
As of the first quarter of this year, delinquency of at least 30 days on loans included in commercial mortgage-backed securities was 4.45 percent.
The rate retreated from the final quarter of last year, when it was 4.53 percent. But deterioration has occurred since the first quarter of last year, when the rate was 3.87 percent.
From:: Financing
A superficial month-over-month decline was recorded for government-insured reverse mortgage production. Year-over-year results were positive.
The Federal Housing Administration provided endorsements for 4,854 home-equity conversion mortgages during all of May 2017.
Business slowed from 5,036 units the previous month. But volume increased compared to the same month last year, when 3,646 HECMs were endorsed.
From:: Financing
Interest rates on single-family loans were mostly in a holding pattern over the past week, and the forecast is for more of the same.
On loans to finance a home purchase, 30-year fixed rates on conforming, conventional mortgages averaged 4.04 percent in April.
That turned out to be a big improvement compared to the previous month, when the average rate worked out to 4.24 percent.
From:: Financing
An improvement in the performance of securitized commercial real estate loans backed by office buildings was enough to offset deterioration in every other category.
Loans that were delinquent at last 30 days accounted for 5.47 percent of all loans that are included in commercial mortgage-backed securities as of May 31.
Late payments on securitized CRE loans were down from 5.52 percent as of April 30, when the delinquency rate had risen for three consecutive months.
From:: Financing