Banking

The 2015 decision posed new legal challenges for institutions trying to sell loans to third parties, but the federal regulatory agency proposed steps Monday for banks and debt parties to evade state interest rate caps.

Lenders have bundled more than $18 billion worth of non-QM, private-label loans into bonds this year that they then sold to investors, a 44% increase from 2018 and the most for any year since the securities became common post-crisis.

The third-quarter delinquency rate fell to its lowest point since 1995, according to the MBA. However, Attom Data Solutions' numbers show foreclosure filings experienced a near-term growth spurt in October.

The percentage of recent mortgage borrowers with subprime credit scores still resides in the single digits, but nearly doubled what is was in 2013, according to TransUnion.

Home loan originations rose by double digits in the third quarter while auto loan originations approached an all-time high, according to new household credit data from the New York Fed.

Such credits, which reflect borrowers with financial challenges, increased significantly during the third quarter.

So far farm loans are holding up well, but bankers gathered at an industry conference this week said they are growing increasingly concerned that credit quality will weaken if the U.S. and China don’t reach a deal soon.

Overall home-loan delinquencies remain near 20-year lows, but in Iowa, Minnesota, Nebraska, Rhode Island and Wisconsin, they are inching up in moves that may be tied to local economic concerns.

Tom Marano, a former Bear Stearns banker, was apparently well compensated following the housing crisis for heading up ResCap and Ditech, both of which went into bankruptcy.

The FDIC ordered the Seattle bank to pay a nearly $1.4 million fine tied to improper agreements with real estate brokers and homebuilders.