Investments

Sound the alarm? Alt-doc loans have doubled in the last two years

Fitch expresses caution about rise of alternative documentation mortgages
After the housing crisis, the credit box shrank with the installation of the Qualified Mortgage lending standards. In recent years, some lenders have begun to expand on the credit box, as seen by a recent increase in non-QM lending. But that’s giving rise to some of the types of mortgage products that haven’t been seen since before the housing crisis, and one credit ratings agency is now expressing some concern about how risky some of those loans may be.
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Opendoor lays off 50, asks hundreds to relocate to Phoenix

Makes plans to beef up Arizona headquarters
It’s been a banner year for Opendoor, as the digital real estate disrupter continued to rake in serious investor cash, earning it a valuation of $3.8 billion. But, apparently, with all that cash comes growth, and that often leads to change. Opendoor laid off 50 of its 1,300 employees last month, and it’s asked as many as 300 working in offices around the country to relocate to its Phoenix headquarters.
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Former Equifax executive jailed for profiting off data breach

Jun Ying admitted to dumping stock after learning of breach
The former chief information officer of Equifax’s U.S. business admitted in court that he dumped nearly $1 million in company stock after learning of the massive data breach at the credit reporting agency, but before the breach was disclosed to the public.
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First quarter GDP holds steady at 3.1%

Current-dollar GDP rises to 3.8% in Q1's third estimate
Real gross domestic product increased at an annual rate of 3.1% in the first quarter of 2019, according to the third estimate released by the U.S. Bureau of Economic Analysis. Today's first quarter GDP estimate is based on more complete source data than was available for the advance numbers issued last month.
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Fast-growing cities see substantial decline in affordable housing

Lack of rental housing to accommodate low-income residents
The fastest-growing cities in the U.S. saw their stock of affordable housing decline substantially from 2010 to 2017, according to the latest research from Freddie Mac, highlighting a strong correlation in population growth and affordability loss. Here are the cities that are seeing the greatest influx of residents.
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Trump signs executive order to tackle lack of affordable housing

Establishes council to eliminate barriers to development
President Donald Trump signed an executive order Tuesday that establishes a White House Council tasked with identifying and removing barriers hindering the development of affordable housing. In effect, he is “tearing down red tape in order to build more affordable housing,” a White House release said.
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Homeowners in these cities are doing the most remodeling

Despite nationwide slowdown, 5 major metros see an uptick in remodeling activity
Remodeling activity across the nation has slowed in the last year, but some cities have bucked the trend and posted gains despite the nationwide housing slowdown. According to the latest from housing data and analytics company BuildFax, remodeling activity increased in May in five of the top 10 metropolitan statistical areas, but elsewhere signs of a nationwide housing slump are evident.
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Ginnie Mae removes loanDepot's VA loan restrictions

Reinstates lender's ability to participate in all bond programs
After nearly six months of being restricted from participating in some of Ginnie Mae’s mortgage bond programs as part of the agency’s crackdown on lenders for Department of Veterans Affairs loan churning, loanDepot is back in the game. Ginnie Mae announced Friday that it has removed the mortgage bond restrictions it placed on loanDepot earlier this year.
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