Credit Scores Rise, As Does Higher LTV Share
After a period of loose lending standards, credit scores have returned to levels similar to those of two decades ago. But a larger share of mortgages have higher loan-to-value ratios.
Mortgage Closing Rate Deteriorates
Loan originators closed a smaller share of loan applications last month. Refinances fared worse then purchase transactions.
Mortgage Debt Patterns Altered By Crisis
A shift in the financial profile of the U.S. population over the past decade has mortgage debt making up a bigger share of liabilities for older Americans and a smaller share for millennials.
Bankruptcy Filings Ease
Fewer consumers across the country resorted to bankruptcy last month. Among all states, Mississippi had the worst bankruptcy rate.
Government Lending Tightens
Conventional lending standards were slightly more flexible last month, but that was offset by tightened access to government-backed mortgages.
LOs Closing More of Mortgage Applications
Residential loan originators are working harder to close loans, pushing up the closing ratio. The only product to see diminished productivity was government-insured refinances.
Mortgage Market Conditions Deteriorate
Fewer lenders see home prices rising, while more said it was hard to get a home loan, according to a survey of senior mortgage executives. The outlook is for weakening mortgage demand.
Monthly Bankruptcy Filings Ease
July saw fewer bankruptcy filings than the prior month, while the year-over-year improvement was the best so far in 2014.
FHA Credit Conditions Far Looser Than Conventional
Just a month after loosening to its most flexible level in three years, the availability of mortgage credit tightened. Conditions on government credit are much more flexible than on conventional credit.
Loan Processing Time, Refi Share at 3-Year Low
As refinance share fell to the lowest level in at least three years, so did the time it took to close a mortgage. Loan originators, meanwhile, closed fewer of the loan applications they started.