Interest-only loans accounted for 26% of all mortgages funded in the second quarter, according to exclusive survey figures compiled by National Mortgage News.Lenders originated $213 billion in IO mortgages during the second quarter, compared with $141 billion in the first. In the first quarter, IOs accounted for 21% of all loans funded. In the fourth quarter, IO production accounted for 15% of all loans ($101 billion), survey figures show. (NMN is the only publication that has a history of tracking IO production.) IO loans and payment-option ARMs lower monthly payments for consumers, because no principal is being paid down, but are considered somewhat controversial because consumers cannot build equity in their homes unless the property rises in value. Some lenders say the loan is being used by speculators who are betting on rapid price increases in hot housing markets.
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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.
10h ago