Originations

New U.S. home construction declined in September and permit applications for single-family dwellings fell, adding to evidence that the highest mortgage rates in two decades are sapping demand and discouraging new builds.

The new product will be based on a recent revision to the Department of Veterans Affairs' handbook for lenders, according to the company.

The agency is currently using upper ceilings set in the Housing and Economic Recovery Act of 2008.

Urban Institute research backed by the Federal Home Loan Bank of San Francisco suggests using rent and utility reporting for this purpose is complicated but has a net benefit.

The development, touted as an industry-first, is the latest move by the government-sponsored enterprises to expand housing opportunities for first-time and underserved homebuyers.

New-home mortgage applications fell 13.2% on an annual basis, while average purchase sizes declined for the fifth straight month.

Quarterly numbers also show the smallest gain in appreciation since 2011, with values decreasing on an unadjusted basis, according to Fannie Mae.

The Detroit-based lender said the program will "accelerate loan purchases" and "eliminate significant costs" for its partners

While loan consolidation is a priority for many who consider home-equity products, a third of those with other debts aren't comfortable taking out a second lien on their homes.

The introduction of utility, cable and telco payment information follows noticeable growth in the past year toward the inclusion of rental history in underwriting.

The company, which is undertaking a substantial cost-cutting reorganization and laying off thousands, also announced pay raises last month for at least two executives.

The high interest rate environment is causing repeat buyers to pull back from the market, creating ample space for entry borrowers to purchase a home.

Origination activity dropped quarter-to-quarter by more than prior industry estimates, however.

The letter, sent under the banner of the Black Homeownership Coalition, is the second in two months sent by the trade group in its ongoing campaign.

Altogether, the lender has reduced funding capacity by over $900 million in the past month.

Following the Consumer Price Index release, the 10-year Treasury yield broke through 4%, making continued increases likely.

And a trio of large publicly traded nonbank lenders looking to defend market share may consider buying those mid-sized brethren, a Keefe, Bruyette & Woods report said.

Their summer gains come as home price growth begins to slip and reverse mortgage volumes hit a two-and-a-half year low in September.

Softening prices have yet to lead to a turnaround in purchase activity, even as the average loan size fell under $400,000.

And rising rates caused the government-sponsored enterprise to cut its forecast for this year.