Unequal access to home mortgages and a changing market structure are burdening with high-cost mortgage debt low-income homebuyers who lack the knowledge to shop for affordable products, according to research by the Harvard University Joint Center for Housing Studies.According to center director Nicolas P. Retsinas, new technologies "have spawned a revolution in mortgage finance" enabling millions of low-income families "to obtain home mortgages on favorable terms." However, he said, "The mortgage broker-led 'push marketing' of low-downpayment, high-cost mortgages has left some unsuspecting borrowers with mortgage debt they cannot afford and may not even need." Entitled "Credit, Capital, and Communities: The Implications of the Changing Mortgage Banking Industry for Community Based Organizations," the 18-month study funded by the Ford Foundation was released at a Federal Reserve Board briefing. It found that mortgage brokers are most prevalent in the subprime market, where they accounted for almost 45% of subprime home mortgage originations in 2002 -- 16 percentage points higher than their share of prime mortgage originations.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago