What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

Mortgage

How the increasing nonbank origination share is changing the housing market

Nonbank originations hold lower average FICO scores

The origination share from nonbanks has increased significantly over the past five years, and is bringing several changes to the residential lending market, according to Urban Institute's August Chartbook.

Overall, the nonbank origination share increased from 30% in 2013 to 60% in July 2017. During that same period, Ginnie Mae saw the highest increase, moving from 37% to 75%. Freddie Mac’s share increased from 22% to 49% and Fannie Mae’s jumped from 38% to 52%.

The chart below shows the increase over the past five years.

Click to Enlarge

Urban Institute

(Source: eMBS and Urban Institute)

And this increasing share of nonbanks is bringing several changes to the housing industry. For example, nonbanks played a major role in opening access to credit. The chart below shows the average FICO score among nonbanks is much lower than banks.

The average FICO score among nonbank customers rests lower than 720, while the average score among banks is just under 750.

The chart below shows the average FICO scores among bank and nonbanks over the past five years.

Click to Enlarge

Urban Institute

(Source: eMBS and Urban Institute)

But a lower average FICO score isn’t the only way nonbanks are opening the credit box. The chart below shows nonbanks originate loans with higher loan-to-value ratios.

Click to Enlarge

Urban Institute

(Source: eMBS and Urban Institute)

Nonbanks also originate loans with higher debt-to-income ratios, as the chart below shows.

Click to Enlarge

Urban Institute

(Source: eMBS and Urban Institute)

Most Popular Articles

FHFA extends forbearance period to 18 months

In an effort to protect homeowners, the FHFA extended forbearance coverage to 18 months and pushed the eviction and foreclosure moratorium to June 30.

Feb 25, 2021 By

Latest Articles

How lenders can prepare for growing fraud threats

HousingWire recently spoke with Jeffrey Morelli, general manager at Truework, about what lenders can do to prepare for and overcome the growing threat of fraud and data inaccuracy.

Feb 26, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please