Monday Morning Cup of Coffee takes a look at news crossing HousingWire's weekend desk, with more coverage to come on bigger issues.
There have been fewer mortgages opened in some parts of the country despite historically low rates, and millions of consumers are still struggling to afford the monthly payments on their homes. Blame stagnating wages, student debt and credit card debt. That’s what Credit.com looked at to identify the top 10 most struggling housing market states.
We looked at second-quarter mortgage data from this year, using the Experian-Oliver Wyman Market Intelligence Reports and analyzing it with Experian’s IntelliView tool, to see which states are struggling most with mortgage recovery. The rankings weigh these factors: the number of mortgages originated per capita, outstanding mortgages per capita and percent of borrowers more than 60 days past due on their home loans. The first two data points were adjusted based on 2013 Census Bureau population estimates, each factor was given equal weight in determining rank and the data is the most recent available. Individual ranks were added together to determine overall rankings.
Read the full report here.
Two big housing metrics come out this week. The first is the National Association of Home Builders’ housing market index on Thursday.
The NAHB housing market index for September was boosted by rising traffic, posting at 59 in September vs August's already strong 50-plus reading of 55. The traffic component, which has been lagging badly, was up 5 points to a near-50 reading of 47. Readings above 50 indicate monthly growth, for perspective.
The present sales component was also up 5 points, to 63 in what points specifically to September gains for new home sales. The future sales component was at 67 for a 2 point gain.
The second big indicator for housing is the monthly housing starts report coming Friday, which will show starts for September.
Housing starts for August fell 14.4%, following a boost of 22.9% the month before. August's pace of 0.956 million units was up 8% on a year-ago basis. The multifamily component declined a monthly 31.7 after jumping 44.9% in July. The single-family component edged down 2.4%, following an 11.1% surge in July. Building permits were oscillating, too.
Permits decreased 5.6% in August, following an 8.6% boost in July. Monthly swings have largely been in the multifamily component. The single-family component has been in a modest downturn in recent months.
Now the CFPB is after mini-correspondent lenders.
The federal Consumer Financial Protection Bureau (CFPB) has focused recently on mini-correspondent lenders. Mini-correspondents are a type of small mortgage banker that close loans in their own name. Once closed, they sell the mortgage to a larger lender and generally don't have a net worth high enough to hold onto the loans.
In July, the CFPB said it's "concerned that some mortgage brokers may be shifting to the mini-correspondent model under the mistaken belief that identifying themselves as such would automatically exempt them from important consumer protection rules affecting broker compensation."
CFPB is considering more changes to the mini-correspondent business model, but that led the National Association of Realtors (NAR) to send a letter to CFPB Director Richard Cordray asking the agency not to eliminate "mini-correspondent" lending altogether.
Just for fun and giggles, remember Calvin and Hobbes? How much do you think their antics cost their parents in terms of home destruction and repair costs?
For me, every penny would be worth it to raise a son playing Calvin Ball and making scary snowmen in the front yard. For you penny pinchers out there? About $2,000 a year.
Raising a child is expensive, but be thankful your child is not like Calvin from “Calvin and Hobbes.” Raising a child through age 17 sets the average parent back $241,000, according to the U.S. Department of Agriculture. But Matt J. Michel, a former NASA scientist, wanted to know exactly how much Calvin’s shenanigans cost his parents over the ten-year duration of Bill Watterson’s classic comic strip. Michel used regional labor and material costs from “Calvin and Hobbes” creator Bill Watterson’s hometown of Chagrin Falls, Ohio, to calculate the cost of repairing property damage caused by the 6-year-old’s shenanigans. To estimate the cost of damaged goods, Michel used Amazon.com. His conclusion: $15,955.50, or roughly $1,850 per year. And you thought braces were pricey.
No banks were reported as failed by the FDIC for the week ending Oct. 10.