The strong performance of residential mortgage loans has probably peaked, according to the Federal Deposit Insurance Corp., which says it expects delinquencies to increase over the next few years, especially for interest-only and payment-option ARMs."Despite favorable delinquency and default trends so far, analysts fear that the current rising interest rate environment combined with cooling home prices will limit borrowers' options when faced with large monthly payment increases," the agency says in the latest issue of "FDIC Outlook." The FDIC also notes that the popularity of IOs and option ARMs and the easing of credit standards has moved the mortgage credit cycle into "uncharted territory," and says there is great uncertainty as to how these mortgages will perform. "Despite today's low loss rates, credit risk remains the most important long-term threat to bank earnings," FDIC chief economist Richard Brown said. "Bankers and bank regulators need to remember that rapid expansion in loan volumes often leads, over time, to declining credit quality."
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House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
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A labor shortage is costing the market tens of thousands of new homes per year, and tariff uncertainty is adding thousands of dollars in expenses per unit.
July 3 -
The pace of revenue growth slowed toward the end of 2024, with the trend continuing into the first three months of this year, NAHB reported.
July 3 -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
The 10 basis point decline in the 30-year fixed mortgage was the most since March and the first time rates are below 6.7% since April, Freddie Mac said.
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The firm, now going by Fairway Home Mortgage, said the change is a representation of plans to create a "connected ecosystem."
July 3