Adjustable-rate mortgages and interest-only products accounted for 63% of mortgage originations in the second half of last year, according to a survey by the Mortgage Bankers Association.The Single-Family Mortgage Activity Survey also found that nonprime and alternative-A loans increased their market share to nearly a third in the second half, ARM originations split almost evenly between traditional and hybrid ARMs, and the dollar volume of second-mortgage production rose 17% from that of the first half, the MBA reported. MBA chief economist Doug Duncan said consumers typically shift to ARMs when long-term rates rise at the end of a refinance boom and the spread between long- and short-term rates widens. "This interest rate cycle is unusual in that the increase in ARMs has occurred with a much smaller increase in rates than in past cycles," Mr. Duncan said. "One reason is that house-price appreciation leading up to this ARM cycle was much stronger than in previous ones, creating affordability constraints that led a number of buyers to seek lower payments with ARMs."
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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.
6h ago -
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.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago