Mortgage Delinquency Soars, Hurricanes Blamed
|Purchases Pull Down Weekly Mortgage Business
Home purchase financing activity tumbled during the week that included Veterans Day, dragging down overall business. But cashout refinance activity was the strongest it's been in over four years.
The quarterly non-current mortgage rate surged 58 basis points, with government-insured performance taking the biggest beating. Much of the blame was ascribed to the effects from the recent hurricanes.
Mortgage Lenders Looser Than Year Ago
Home loans closed last month had lower credit scores, higher loan-to-value ratios and higher debt-to-income ratios than a year earlier. While turn times have improved over that same period, closing rates have not.
FHA MMIF Capital Ratio Deteriorates
Following four straight years of improvement, the Mutual Mortgage Insurance Fund's capital ratio deteriorated. No reduction in premiums are likely as reverse mortgages continue to be a problem.
Refinances Drive Up Weekly Mortgage Applications
A refinance burst bumped up weekly mortgage applications, while a healthy year-over-year ascension has been recorded for purchase financing applications.
MBS Issuance Slowest in 5 Months at Ginnie
Securitizations on behalf of the Government National Mortgage Association turned lower last month, falling to the slowest volume in five months. The weak performance came off of a record year.
Refis Offset Bump in Purchase Mortgage Apps
Mortgage originators completed more weekly applications for loans to finance a home purchase -- with a nice year-over-year improvement. But refinances offset the week-over-week gain. Government share was up on a week-over-week basis.
Jumbo Leads Tightening in Mortgage Credit
After easing to the loosest level in nearly a decade, home lending credit conditions tightened last month. It was jumbo credit that led the constriction. But government mortgage credit eased.
FHA's Endorsements Solidly Higher
Residential endorsements jumped to the highest level in seven months at the Federal Housing Administration, while commercial real estate activity was the highest in at least four years. Delinquency worsened, however.