Originations of piggyback loans declined by 63% in 2007, but Fannie Mae and Freddie Mac continued to purchase about the same number of such loans, according to just-released Home Mortgage Disclosure Act data. The HMDA report indicates that the number of piggybacks (where a first lien and a second lien are made simultaneously) fell from 1.1 million in 2006 to 389,150 in 2007. However, the mortgage giants purchased nearly 30% of the 2007 piggybacks, compared with 12.5% in 2006. The Federal Reserve commentary on the HMDA data notes that piggybacks are usually originated to avoid buying mortgage insurance or to make sure that the first lien is below the conforming loan limit (which was $417,000 last year). As expected, the HMDA report also shows a sharp decline in subprime lending. Subprime or "higher-priced" loans fell to 1.9 million in 2007 from 2.9 million the previous year. Nearly 170 lenders closed up shop in 2007 and did not file HMDA reports. In 2006, those lenders reported making nearly 400,000 subprime loans.
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Elevated delinquency levels have not affected expected losses, however, due to home price appreciation, Fitch Ratings said.
10h ago -
Retail lenders, including Beeline, Tomo Mortgage and Rocket Mortgage, settled with the department over infractions like submitting a false certification to not having the proper liquidity to be in the program.
11h ago -
A pair of bills, one with bipartisan support, look to address the issues around heirs' property so these families can have clear title on their homes.
11h ago -
The agreement, in which the real estate giant admits no wrongdoing, will cover around 70,000 agents.
April 26 -
Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
April 25 -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25