Articles by Jessica Guerin

Mortgage borrowers will be just fine when the economy slows

Capital Economics says lenders can expect a nominal rise in delinquencies
An economic slowdown has been widely forecasted, and this brings into question its inevitable impact on the housing market. But while a slowing economy typically causes a rise in mortgage delinquencies, Capital Economics predicts the impact will be minimal, as most borrowers should have no problem keeping up with their mortgage payments.
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With iBuyers, sellers pay a price for convenience

Is it worth the premium to unload a property hassle-free?
The iBuyer model may be new, but it appears to be catching on quick. The market for iBuyers has exploded, growing by 25% every year for the last four years as big names like Zillow and Redfin get in on the game. But what, exactly, do iBuyers bring to the table for home sellers? And, can this business model survive the housing market downturn so many are predicting? That’s what Collateral Analytics sought to answer in a recent paper on the topic, which offered a deep dive into the strength of the iBuying concept.
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Lack of housing inventory is weighing down the market

Single-family home sales disappoint
Mortgage applications are up, but home sales are down, and lower rates don’t seem to be making an impact. What gives? Blame a lack of housing supply, according to a recent report from Capital Economics, which noted that “qualifying for a mortgage is of little help if you can’t find a home to buy.”
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Online mortgage broker Morty launches first-time homebuyer platform, expands reach

Startup leverages tech to bring simplicity and transparency to the mortgage process
Looking for a helpful mortgage broker to assist you in the purchase or refinance of a home? Meet Morty! Sounds friendly, right? But it's more than that. Launched two years ago by four 30-something mortgage and tech entrepreneurs, Morty is an online broker that offers consumers rates from a marketplace of lenders in a transaction that is completely digital. And now, Morty has a new platform for first-time homebuyers, and it may be available in your state.
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Ocwen agrees to refund Maine residents to end foreclosure dispute with the state

Will pay to make amends for pursuing foreclosure on loans for which Maine said it had no claim
Ocwen Financial signed a consent agreement with the state of Maine last week to make amends for pursuing foreclosures on the properties of more than two dozen Maine residents in a manner found to be unlawful by the state. According to the Maine Bureau of Consumer Credit Protection, Ocwen Loan Servicing instigated foreclosures on loans based on paperwork that was determined to be legally inaccurate.
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Moody's predicts rise in lender profits

Spike in refi and jumbo demand will boost returns
With interest rates down, lenders can expect to see demand spike for refinances and jumbo residential mortgages, according to Moody’s Investors Service, and this will help boost profits. A recent report from Moody’s revealed that mortgage underwriting standards have remained stable, a trend it expects to continue in the current rate environment.
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Apathetic home sales dampen price growth

Home prices are still rising, but at a much slower pace
Home prices are continuing to appreciate, just not as rapidly as before. Prices rose by 3.4% in June from the year before, according to the latest data from CoreLogic. CoreLogic Chief Economist Frank Nothaft said apathetic home sales are to blame. "Tepid home sales have caused home prices to rise at the slowest pace for the first half of a year since 2011," Nothaft said.
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HUD, City of Los Angeles reach "landmark" settlement in accessible housing dispute

LA to pay "hundreds of millions" to improve accessibility for disabled residents
The Department of Housing and Urban Development reached a settlement with the City of Los Angeles Friday that will put an end to a years-long battle over the city’s obligation to provide accessible housing for the disabled. According to the "landmark" agreement, the city will pay what will eventually amount to hundreds of millions of dollars to enhance handicap accessibility for residents living in its low-income housing.
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The 55+ housing market is still going strong

Builder confidence in this sector remains solid
As more Baby Boomers look not just to downsize but to “rightsize” in their retirement years, the 55+ housing market is humming along nicely, showing solid activity despite the faltering state of the overall market. Karen Schroeder, chair of NAHB's 55+ Housing Industry Council, said they expect to see the positive trend continue.
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NYT: Lower rates won't boost the housing market. Here's why

It will take more than a small rate cut to tackle our growing affordability problem
A cut in interest rates typically provides a welcome boost to the housing market, but don’t expect that to happen this time around. According to a recent article in The New York Times, the problems facing our nation’s housing market will require more than a quarter-percentage-point rate cut to solve.
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