Tag Archives: loans

A recent report indicates higher risk attributes for both purchase and refinance loans, although the risk levels remain similar to those in early 2000s.

According to a new study from the CFPB, consumers in lower-income parts of the country are more likely to establish credit history through negative means, like debt collection or public records. About 27 percent of low-income area consumers establish their history through what are called “non-loans,” while just 7.9 percent of consumers in high-income areas establish credit via non-loans. The study found that consumers in higher-income areas more commonly establish credit with a credit card or through co-borrowing.

Jumbo and Government loans jumped in March, boosting overall credit availability. However, Conforming loans saw a drop of 2.6 percent in that time, driven by increased home prices and rising interest rates.

According to Urban Institute, the FHA has more power to increase credit access. The GSEs do risk-based pricing through their loan-level pricing adjustments. However, the FHA does not do risk-based pricing, and so it has insured borrowers and so it has insured borrowers with less-than-pristine credit. Charging the same fee for those with good credit as those with bad credit has limited credit availability.

Foreclosures, loan modifications, and forfeitures have been on a decline for a couple years, according to a report form the Office of the Comptroller of the Currency. The amount of completed foreclosures dropped from 2 years ago by almost 19,000, while deed-in-lieu-of-foreclosure actions have dropped from 1.2 thousand to 0.8 thousand, Home forfeiture actions in total decreased by 32.3 percent year-over-year.

Although profits for processing loans dropped, mortgage lenders with servicing portfolios benefited from higher net servicing financial income in the fourth quarter of 2016 due to increases in the valuation of their mortgage servicing rights. This event was driven by rising interest rates. However, reduced profitability on the production side of the business generally outweighed servicing gains.

This Tuesday, a report will be released covering consumer credit information. See what other industry news is scheduled to be released this week.

By the end of 2016, six of the nation’s top 10 lenders were non-banks, but that trend may not continue in 2017.

With rising interest rates, the average loan amount decreased between December and January.

The new platform by chase will help customers manage their loan applications as well as, continuing to provide customers full access to branches and call centers.