In tightening up its Home Ownership and Equity Protection Act regulations, the Federal Reserve Board thought it could address some abuses in the subprime lending market without stifling growth, according to Fed Governor Edward Gramlich. Since the passage of HOEPA in 1994, the growth of the HOEPA-regulated section of the subprime mortgage market has been the same as in the rest of the subprime market, Mr. Gramlich told an American Enterprise Institute seminar on subprime lending. "So HOEPA is not impeding growth too much," he said. The new rules that went into effect Oct. 1 are expected to increase HOEPA coverage from 9% of all subprime loans to 26%, according to Fed estimates. However, Georgetown University researcher Michael Staten said the new rules could extend HOEPA coverage to 42% of subprime loans, based on his review of 2.3 million subprime loans originated from 1995 to mid-year 2000. ?We don?t know how lenders will react to the new HOEPA coverage,? Mr. Staten said at the AEI seminar.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
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Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
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Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
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Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
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