Best automation opportunities for loan processing

Join our expert panelists to learn how lenders can achieve their goals using the integration of intelligent document automation and RPA technology.

Biden’s housing policy and minority homeownership

An Honest Conversation with New American Funding’s Charles Lowery and Frank Fuentes on how housing policy could impact minority homeownership.

Real Estate Tech Virtual Demo Day

Join us on March 16 to discover the most innovative operations and closing management tech solutions for the real estate industry.

A deep dive into UWM’s recent announcement

This episode examines UWM’s recent announcement that it will no longer partner with brokers who also work with Rocket and Fairway.

MortgageReal Estate

Americans fail basic financial literacy test

Didn’t learn anything from housing crisis apparently

Can you figure out the amount of money you would owe on your loan after one year of interest? If not, you are part of about two-thirds of Americans who can’t pass a basic test of financial literacy.

The National Capability Study, conducted by the FINRA Foundation, surveyed 27,564 Americans, from June through October of last year, according to an article by Madaline Farber for Time. FINRA is a quasi-government organization that regulates brokers and Wall Street.

From the article:

Bonds presented one of the biggest problems for respondents of the survey. Just 28% knew what happens to bond prices when interest rates fall. (They rise.) And less than half of all Americans appear to be able to answer basic questions about financial risk.

In fact, more Americans failed the test today than in 2009, according to the article. While 37% of Americans could pass the test this time around, in 2009, 42% could pass it.

This inability to pass a simple financial test is despite the Consumer Financial Protection Bureau’s attempts to educate homebuyers.

The study also shows that some groups are worse off today than they were even during the recession.

From the article:

However, the study also showed that even eight years after the financial crisis, significant segments of the population, including African-Americans, Hispanics, women, Millennials, and people lacking a high school education — so a lot of people — are still worse off than before the recession.

Women are more likely to put off medical services like seeing a doctor, buying prescriptions, or undergoing a medical procedure due to cost. This leaves more than one in five Americans, or 21%, with unpaid medical debt, according to the study.

As for minorities, 39% of blacks and 34% of Latinos have used such high-cost forms of borrowing as pawn shops and payday loans, compared with 21% of whites and 21% of Asians.

And unlike their predecessors, 29% of Millennials, who are 18 to 34, said they had been tardy paying their mortgage, vs. 16% of those ages 35 to 54. And 45% of all respondents with no college education said that if they had an emergency requiring them to pull together $2,000 within a month, they wouldn’t be able to do so.

Most Popular Articles

Rocket Mortgage: UWM is trying to “manipulate” market

“We would never in our wildest dreams, tell a broker to choose us, or someone else,” Rocket Mortgage’s Austin Niemiec said in an interview

Mar 05, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please