Reporters discuss bombshell story on’s CEO

An exclusive interview with the Forbes reporters who recently wrote a bombshell article about CEO Vishal Garg’s controversial workplace culture.

Now is the time to double down on diversity and inclusion efforts

Quicken Loans Mortgage Services is proud to partner with a diverse set of brokers, which broadens the pool of potential clients they serve together.

How to Accelerate Closings in 2021

In this webinar, we’ll provide you with actionable insights to help you accelerate your closing process from point-of-sale through post-closing.

Why are sellers sitting on the housing market sidelines?

Why aren’t more homeowners selling in this hot housing market? According to new research from Zillow, a number of factors are at play.

Politics & MoneyMortgage

Is the mortgage credit box really loosening?

Federal Reserve survey tells all

The Federal Reserve sent out a survey to senior loan officers, asking about the status of mortgage credit, if it was loosening and how many consumers are applying for the products.

HousingWire readers saw this morning that mortgage credit standards loosened in October, especially among jumbo loans, according to the latest report from the Mortgage Bankers Association.

But while this report seems to show mortgage credit standards are loosening, 88.9% of lenders reported that mortgage credit for GSE-eligible residential mortgages actually remained the same over the past three months, according to the survey from the Fed. Another 11.1% reported that credit eased somewhat, the highest increase of all the mortgage types.

Credit standards for mortgage loans the bank categorizes as government residential mortgages remained the same over the past three months for 96.5%. Qualified mortgage non-jumbo loans, non-GSE-eligible mortgages, saw credit standards remain the same at 95% of banks.

Even among QM jumbo residential mortgages credit standards remained the same in 90.5% of banks, and even tightened at 1.6% of banks. Of the non-QM jumbo mortgages, those that are not GSE-eligible, 91.4% saw the credit standards remain the same, and 3.4% even saw standards tighten somewhat.

But while jumbo loans were the only category of mortgages to see a tightening of credit standards, more lenders reported a loosening of standards than those that reported a tightening. QM jumbo loans eased somewhat for 7.9% of lenders, and non-QM jumbo loans eased somewhat for 5.2% of lenders.

According to the Fed’s survey, therefore, GSE-eligible residential mortgages saw the most loosening of credit standards, while some jumbo loans even saw a tightening of standards. This summary discusses the responses from 69 domestic banks and 21 U.S. branches, found here.

What’s more, the demand for mortgages remained relatively stable. In every loan type, over 65% of banks said the demand for that product remained the same. Demand for QM jumbo residential loans saw the most increase with 27% of banks saying it grew moderately stronger over the past three months.

But it’s no wonder jumbo loans saw the most increase in demand. Home prices hit a new all-time high, finally surpassing the pre-recession peak, according to the Q3 2016 U.S. Home Sales Report from ATTOM Data Solutions, a source for comprehensive housing data and the new parent company of RealtyTrac.

In fact, home prices rose so much that the chances are high that the Federal Housing Finance Agency will raise the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2017.

Most Popular Articles

The downside of the hot 2020 housing market: rapid home-price growth

The mismatch in the COVID deflationary impact toward the economy overall and the strength of the housing market due to demographics makes for a troubling formula for home-price growth, which we are seeing. The recent NAR existing home sales report showed 15.5% year-over-year growth in prices. HW+ Premium Content

Nov 30, 2020 By

Latest Articles

Fannie and Freddie need “significant capital” to leave conservatorship, Mnuchin says

In a hearing before the House Financial Services Committee, Treasury Secretary Steven Mnuchin said no definite plans have been made for the future of Fannie Mae and Freddie Mac, but discussed the idea that they could be released from conservatorship before their full capital levels are reached.

Dec 02, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please