Low Credit Scores Cost Borrowers 59 BPS
Home buyers who financed the purchase of their house and had high credit scores saw rates that were 59 basis points better than their poor-credit counterparts. Loan amounts fell with credit scores.
Mortgage Lenders Looser Than Year Ago
Home loans closed last month had lower credit scores, higher loan-to-value ratios and higher debt-to-income ratios than a year earlier. While turn times have improved over that same period, closing rates have not.
Jumbo Leads Tightening in Mortgage Credit
After easing to the loosest level in nearly a decade, home lending credit conditions tightened last month. It was jumbo credit that led the constriction.
HELOC, GSE and Gov Mortgage Demand Weakens
Financial institutions are reporting waning demand for government-sponsored enterprise loans and government-backed home loans. Also weakening was demand for home-secured credit lines.
Monthly Consumer Bankruptcy Filings Worsen
There were fewer consumers last month who resorted to the U.S. Bankruptcy Courts for relief from their creditors. Alabama had the highest rate of bankruptcy.
Radian Loosens Jumbo, Downpayment Requirements
Changes being made by Radian Guaranty Inc. will make it easier to qualify for jumbo mortgages, loans for medical professionals and transactions with alternative downpayment sources.
Conventional Share Widens w/Refis, Though Off YoY
As refinance share widened last month, so did conventional share -- though it has diminished over the past year. Turnaround and closing rates both deteriorated.
Mortgage Credit Conditions Best in Nearly Decade
Home lenders have made it easier to qualify for a mortgage for four consecutive months. The latest gain was enough to put credit conditions at their loosest level in nearly a decade.
Consumer Bankruptcy Filings Fall to 7-Month Low
New bankruptcy filings by consumers were down from a month earlier to the lowest level in seven months. Filings also retreated from a year earlier.
Modest Rise in Mortgage Credit Risk
Over the past year, risk on new mortgage originations moved modestly higher. Much of the increase was tied to a rising share of investor and condominium loans.