Mortgage payment resets may result in $110 billion in foreclosure losses over several years, but this would represent less than 1% of total U.S. mortgage lending during the same period and would not significantly affect the economy, according to a study by First American Real Estate Solutions.The resets -- stemming from the conversion of low, teaser interest rates on adjustable-rate loans to higher prevailing rates -- will nevertheless hurt some families and firms involved with the riskiest loans, the company said. "Mortgage payment reset is likely to be the most important issue facing mortgage servicers and investors in the nonprime market during the next few years," said George Livermore, president of the Property Information and Services Group of The First American Corp., the parent company of First American RES. "This analysis provides helpful guidance for mortgage professionals by explaining key dynamics associated with mortgage payment reset and provides a method for evaluating risk." The study, "Mortgage Payment Reset: The Rumor and the Reality," was conducted by Christopher Cagan, director of research and analytics at First American RES. The company can be found online at http://www.firstamres.com.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
March 28 -
Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
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Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
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Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
March 28