Millennials spend more of their monthly income on homeownership costs than other generations and are at the greatest risk of becoming house-rich and cash-poor, according to a new study from Hometap. The study, a survey of 1,000 US homeowners, found that 83% of millennials carry at least some debt, compared to 72% of baby boomers. Of everyone surveyed, 47% were negatively impacted by the pandemic, and 77% carried some debt. More than a quarter of all homeowners say they plan to tighten their budgets until their debts are paid. But as homeownership costs rise, paying down the debts may become increasingly difficult. Hometap found that 52% of homeowners spend at least 16% of their monthly income on mortgages, and 46%…
Delinquency fees charged to forbearance-holders, payment handling violations, and pricing discrimination are among the mortgage-related violations highlighted by the Consumer Finance Protection Bureau’s (CFPB) latest Supervisory Highlights report. “Today’s report reveals that irresponsible or mismanaged firms harmed Americans during the COVID-19 pandemic,” said CFPB Director Rohit Chopra. “We will continue to supervise firms to halt harmful practices before they become widespread.” The report, which did not name particular companies, outlined illegal actions the CFPB claims to have observed in the first half of 2021. The CFPB supervises banks with assets of more than $10 billion and some non-banks, including mortgage companies, private student lenders, and payday lenders. The report called out mortgage lenders for the following: charging delinquency-related fees to…
Good Morning! Today is Wednesday, December 8. The US will spend $400 million on vaccine distribution in Africa and elsewhere. The House passed a $768 billion defense policy bill, which now moves to the Senate. Chris Cuomo’s publisher canceled his planned book. And in mortgage and housing news… Mortgage Applications Up: Mortgage loan application volume rose 2% last week, MBA’s weekly survey reported. Missed Rent Payments: Renters were three times more likely to miss payments than homeowners during September and October, according to research from RIHA. Commercial/Multifamily Delinquencies: Delinquencies on commercial and multifamily mortgages fell in Q3 2021, according to MBA’s Commercial/Multifamily Delinquency Report. NAR Political Spending: NAR’s political spending is in opposition to its stated desire to support education…
Mortgage loan application volume rose 2% last week, the Mortgage Bankers Association’s (MBA) weekly survey reported. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, rose 2%. The seasonally adjusted purchase index fell 5%, while the unadjusted purchase index rose 28% and was 8% lower YOY. The share of refinance applications rose 9% and was down 37% YOY. Refinances made up 53.9% of total applications, up from 59.4% the previous week. The report noted that mortgage rates fell after rising for several weeks, which resulted in the surge of refinances. “While the 30-year fixed mortgage rate and 15-year fixed mortgage rate both declined only one basis point, the FHA rate fell 7 basis points, driving the…
Delinquencies on commercial and multifamily mortgages fell in Q3 2021, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. Loans delinquent by more than 90 days or in non-accrual fell by 0.06 points in Q2 to 0.69% for banks and thrifts. Life company portfolios saw a decrease of 0.01 to 0.04% for loans 60 or more days late. Fannie Mae and Freddie Mac delinquencies of 60 or more days fell to 0.42% and 0.12%, respectively. For CMBS, the delinquency rate for 30 or more days or in REO fell 0.82 percentage points to 4.86%. “Commercial mortgage delinquency rates for every major capital source have come down since the early months of the pandemic,” said Jamie Woodwell, MBA’s Vice President…
Renters were three times more likely to miss payments than homeowners during September and October, according to research from the Mortgage Bankers Association’s (MBA) Research Institute for Housing American (RIHA). The study, titled Housing-Related Financial Distress During the Pandemic, found that the share of renters who missed, delayed, or made a reduced payment rose to 9.6% in September and 10.9% in October. In July, that number was 9.6%. The share of homeowners who missed payments declined in the same period, to 3.2% in September, though it rose again in October to 3.8%. In July, that number was 3.8%, while in June it was 4.6%. Of those who missed their June rent, 17.2% also missed their September rent. Of homeowners who…
Good Morning! Today is Tuesday, December 7. New York City will implement a vaccine mandate for private employers this month. President Biden will speak with Vladimir Putin today in an attempt to stave off a Russian invasion of Ukraine. Republican Representative Devin Nunes will resign to run Donald Trump’s media company. And in mortgage and housing news… CT Town Settles For $350,000: Officials from the U.S. Department of Justice have announced a settlement in a lawsuit against a Connecticut town that enacted zoning laws making housing for persons with mental health disabilities unavailable. Mortgage Monitor: Tappable equity reached an all-time high in October 2021, according to Black Knight’s latest mortgage monitor report. New FinLocker SVP: FinLocker has named Andria Thomas …
Fintech company FinLocker has named Andria Thomas as Senior Vice President, Product. “As FinLocker continues to build market traction and looks ahead to the next three to five years, we recognize the need to add more consumer understanding and leadership to our team,” said Prabhakar Bhogaraju, FinLocker Executive Vice-President, Head of Strategy and Product Development. “Andria Thomas brings a wealth of experience in product management in a direct-to-consumer setting and in management consulting. She is also a passionate advocate for financial health, equity, and inclusion. I am excited to have Andria join us and lead all things product here at FinLocker.” In the role, which is a new position within FinLocker leadership, Thomas will lead innovations in the FinLocker app.…
Tappable equity soared to a new all-time high in October 2021, increasing almost a quarter-trillion dollars in Q3, according to Black Knight’s October 2021 Mortgage Monitor Report. Black Knight reports that Q3 home price growth added more than $250 billion to Q2’s “history-making rate.” The average homeowner’s equity has risen by $53,000, working out to $178,000 available in tappable equity before reaching an 80% combined loan-to-value ratio. Homeowners tapped their equity in Q3 at the highest rate in 14 years, with cash-outs accounting for 54% of all refinances. The aggregate total of $9.4 trillion is up 32% YOY and almost 90% higher than the peak in 2006. “Data points like these inevitably, and understandably, lead to comparisons with the run-up…
By KIMBERLEY HAAS Officials from the U.S. Department of Justice have announced a settlement in a lawsuit against a Connecticut town that refused to allow the operation of a group home for people with mental health disabilities.
The DOJ lawsuit alleges officials in Wolcott, Conn. violated the Fair Housing Act when they denied a special use permit to L&R Realty and SELF, Inc. to open a residence for 13 geriatric adults with mental health disabilities.
Lawyers at the Justice Department filed suit last December.
“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said in…
