Digital Media, News

Loans are getting harder to come by for some consumers by USA Today

February 12, 2017

A recent article published by USA Today discusses our current climate for consumer loans.  We have recapped the intro to the article and provided a link to continue.

Banks are getting more picky about which consumers they’re approving for loans as borrowers with spottier credit histories struggle to keep up with payments.

The data is surprising in light of an economy and labor market that have been rolling along. Consumers are benefiting from solid job growth, faster pay increases and low debt levels. And the stock market is at record highs.

Yet 11.7% of banks tightened standards for auto loans in the first quarter, up from 3.3% late last year and the highest level on records dating back to 2011, according to the senior loan officer survey released by the Federal Reserve last week and Deutsche Bank.

Credit card standards were toughened by 8.3% of banks, compared to none in the fourth quarter. And criteria for consumer loans excluding credit cards were tightened by 7.3% of banks, up from 2.4%.

Visit USA Today to learn more about current loan challenges.

Digital Media, News

1st Protective Measure on Housing-Trump

January 23, 2017

Donald Trump blocked an Obama administration policy Friday that would have reduced the cost of mortgages for millions of home buyers. Tricky wording but you must understand that this is a risk preventive measure until policy is put into place.

Here’s a look at what Trump’s first executive action means for your mortgage if it is a Federal Housing Authority loan.

Here’s the Skinny,

In the first hour of Trump’s presidency, the U.S. Department of Housing and Urban Development sent a letter to lenders, real estate brokers and closing agents suspending the 0.25 percentage point premium rate cut for Federal Housing Administration-backed loans. The new rates, announced on Jan. 9, would have gone into effect on Friday.

Who does the cut affect?

Read More 

Digital Media, News

Housing Recovery in 2017, but Challenges Remain

November 30, 2016

Employment and economic growth created, bottled up demand, affordable home prices and attractive mortgage rates will need to be in place to keep 2017 sailing in the wind. However, persistent headwinds related to shortages and jobs are impeding a more robust recovery are the key indicators for a steady growth in the United States.

The Simple Solution!

This housing recovery is all about jobs. If Americans can get good jobs that pay decent incomes, the housing market will continue to move toward smoother waters.  Read More…

Digital Media, News

Fannie and Freddie’s fate depends on whether Trump goes with John or Jeb

Fannie MaeWho will Trump choose: John or Jeb?

No, not for a Cabinet slot, but rather in the matter of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs). It’s one of the more contradictory policy decisions confronting the incoming administration. Trump supporter and hedge fund manager John Paulson would like to see Fannie and Freddie reconstituted. But Jeb Hensarling, the Republican chairman of the House Financial Services Committee, has a plan that would kill them.

To back up a bit, the two companies, which guarantee the interest and principal on roughly two-thirds of American mortgages, have long been the backbone of homeownership. During the 2008 financial crisis, with home prices tumbling, mortgage holders defaulting, and the stock prices of the GSEs tumbling, they were taken over by the government and put into a state called conservatorship, where they have languished for the last eight years.

The Obama administration had zero interest in fixing them. In fact, that administration arguably made things worse in 2012, when the GSEs’ overseers changed the rules of the bailout, which initially just granted the government “senior” preferred stock that paid a nice dividend.

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Digital Media, News

Home Equity Delinquencies on Rise?

November 29, 2016

Could we be witnessing Round 2?

When mortgage mania was at its peak in 2005, millions of homeowners tapped the equity (ATM’s) in their homes through home equity lines of credit.

It’s now time to pay the piper.When mortgage mania was at its peak in 2005, millions of homeowners tapped the equity in their homes through home equity lines of credit.

It’s now time to pay the piper.

HELOCs come with 10-year grace periods, so 2015 marked 10 years after the frothiest borrowings. In March, delinquencies were up 87% compared to a year ago among 2005 second lien HELOCs – those that stand behind a mortgage on the property.

HELOCs taken out in 2005, 2006, and 2007 make up 52% of all active lines of credit, suggesting delinquencies could remain elevated for some time.

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