Growth in first-lien home equity loans and in borrowing by senior citizens were among the findings of the annual Consumer Bankers Association Home Equity Lending Study, according to BenchMark Consulting International.Among the study's 23 participants, 37% of originations were first-lien positions rather than the historically dominant second liens. "The growth of these first-lien positions in home equity portfolios indicates this is a good time to ensure specific risks have not been overlooked," said Jim Leath, manager of BenchMark's consumer lending and mortgage banking practice. The finding that seniors represent a growing segment of home equity borrowers, and at higher amounts, was "a bit of a surprise," Mr. Leath said. "Most people think of seniors as nonborrowers," he noted. "The pattern we found here was that rather than drawing on invested, fixed income for non-need spending, seniors are looking more to home equity for vacations, luxury items and other purchases." The survey also found an increase in 90-day-plus delinquencies, which "implies that we may be taking on some hard-core risk," Mr. Leath said. BenchMark, a division of Fidelity Information Services Inc., has dual headquarters in Atlanta and Munich, Germany. It can be found online at http://www.benchmarkinternational.com.
-
Malhotra joins the home finance giant after previously helping launch platforms to provide generative AI enterprise solutions and founding a technology research lab at the global multinational firm.
7h ago -
The reverse-mortgage lender saw a quarterly loss but expects originations to increase 10% in the second quarter, as it attempts to address high-yield debt concerns.
8h ago -
Capital Community Bank of Provo has purchased Security Home Mortgage, headquartered in nearby Orem.
11h ago -
Mike Kortas, CEO of NEXA, alleges he fired his former co-owner, Mat Grella, because he added himself as a "new manager" of the company in a filed amendment to the company's articles of organization.
May 6 -
Price growth is decelerating but still driving historic home equity gains for owners and widening the gap between the haves and have-nots in housing, ICE finds.
May 6 -
Ex-CEO Michael Strauss used the lender's bank various accounts to pay for his own expenses, a trustee for the failed lender claims.
May 6