Tag Archives: foreclosure

Women, with Weaker Credit, Outdo Men When It Comes to Paying a Mortgage

Source: RISMedia

Female single mortgage borrowers default less on their loans than male single borrowers, despite having weaker credit, a recently released report by the Urban Institute reveals. The results of the report’s analysis show the percentage of female single borrowers who are 90 or more days delinquent is lower than that of male single borrowers—evidence that lesser credit profiles do not predicate lesser loan performance.

“Single women with mortgages are doing a better job of paying their mortgages than their credit characteristics predict,” the report’s authors state. “Because the higher price they pay for their mortgages is based on their credit characteristics when they take out the loan, this means single women borrowers are paying too much for their mortgages  .”

Related: How Single Women Are Changing the Home-Buying Market

Their conclusion is drawn from a number of findings, derived from data obtained through CoreLogic and the Home Mortgage Disclosure Act (HMDA):

Single borrowers, female and male, have lower credit scores than borrowers/co-borrowers.Between 2011 and 2014, the average FICO for a male single borrower was 739; for a female single borrower, 741. This compares to 744 for female/male borrowers and 748 for male/female borrowers. (It is important to note the analysis included data for female/female and male/male borrowers, though these were not explored in depth due to their relatively small representation.)

Single borrowers have lower incomes overall, but those of females register below those of males. From 2011 to 2014, the average income of a female single borrower was $70,200, compared to the average income of a male single borrower, $97,700. (The average incomes in that same period of a female borrower/male co-borrower and male borrower/female co-borrower were $121,300 and $129,800, respectively.)

Female single borrowers are subject to higher interest rates: 4.01 percent on loans originated in 2011 to 2014, more than the 3.99 percent for a male single borrower, the 3.97 percent for female/male borrowers, and the 3.94 percent for male/female borrowers.

Loan amounts skew lower for female single borrowers—an average $171,200 for loans originated between 2011 and 2014. The average loan amount for a male single borrower in that same period was $204,900; the average loan amount for female/male borrowers was $218,200; the average loan amount for male/female borrowers was $234,200.

Female single borrowers fall behind when weighing loan amount against income. From 2011 to 2014, a female single borrower had a 2.9 percent loan size-to-income ratio, compared to 2.6 percent for a male single borrower, 2.2 percent for male/female borrowers and 2.1 percent for female/male borrowers.

In short, female single borrowers have less substantial mortgages taking up more of their budget  . According to the results of the report, 15.6 percent of female single borrowers have higher-priced mortgages—15 percent of male single borrowers, 12.6 percent of female/male borrowers, and 7.6 percent of male/female borrowers, by contrast.

The report emphasizes female single borrowers are also denied mortgages more than their counterparts, and are more likely to be minorities living in low-income areas where more than half of residents are minorities.

All of these findings bring to stark relief the need for alternative credit risk assessment methods. The current lending landscape, according to the report’s authors, shuts single women—particularly low-income, minority women—out of means to homeownership, though they have demonstrated otherwise.

“This omission has real consequences,” the report’s authors state. “Women are generally denied for mortgages more often despite their superior payment performance…we need to develop more robust and accurate measures of risk to ensure that we aren’t denying mortgages to women who are fully able to make good on their payments.”

To view the full report, visit Urban.org

One Million Borrowers Regain Equity in 2015

Source: RISMedia

One million borrowers regained equity in 2015, bringing the total number of mortgaged residential properties with equity at the end of Q4 2015 to approximately 46.3 million, or 91.5 percent of all mortgaged properties, according to the new CoreLogic® analysis. Nationwide, borrower equity increased year over year by $682 billion in Q4 2015. The CoreLogic analysis also indicates approximately 120,000 properties lost equity in the fourth quarter of 2015 compared to the third quarter of 2015.

The total number of mortgaged residential properties with negative equity stood at 4.3 million, or 8.5 percent, in Q4 2105.
This is an increase of 2.9 percent quarter-over-quarter from 4.2 million homes, or 8.3 percent, in Q3
2015 and a decrease of 19.1 percent year-over-year from 5.3 million homes, or 10.7 percent, compared with Q4 2014.

Negative equity, often referred to as “underwater” or “upside down”, applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in home value, an increase in
mortgage debt or a combination of both.

U.S Foreclosure Activity Increases 5 Percent in January

Source: RISMedia

Foreclosure filings — default notices, scheduled auctions and bank
repossessions — were reported on 119,888 U.S. properties in January,
an increase of 5 percent from the previous month but still down 4 percent
from a year ago, according to RealtyTrac®’s recently released
U.S. Foreclosure Market Report™ for January 2015.

The 5 percent monthly increase was primarily by a 55 percent monthly jump
in bank repossessions, to a 15 month high. A total of 37,292 properties
were reposessed by lenders in January, up 23 percent from a year ago to
the highest monthly total since October 2013

“The year-over-year increase in REOs in January was the first annual increase
nationwide, following 25 consecutive months of declines getting the foreclosure
spring cleaning we anticipated in our last foreclosure report off to a quick
start in 2015.” says Daren Blomquist, vice president at RealtyTrac.
“Meanwhile, the number of future foreclosure auctions scheduled in January
continued to increase in many states, foreshadowing more foreclosure spring
cleaning to come in the next several months in those states.”

Foreclosure Rate Rises in August but Still Well Below Last Year

Source: RISMedia

The latest data from the U.S. Foreclosure Market Report( compiled by RealtyTrac) indicate that foreclosure filings
in August rose 7% from July, but are still at a level that
is down 9% from 2013.

“The August foreclosure numbers demonstrate that although
the foreclosure crisis is well behind us, the messy business
of cleaning up the distress lingering from the housing bust
continues in many markets. The annual increase in foreclosure
auctions–the first since the robo-signing controversy rocked
the foreclosure industry back in late 2010–indicates that
mortgage servicers are finally adjusting to the new paradigms
for proper foreclosure that have been implemented in many states,
whether by legislation, litigation, or both,” said
Daren Blomquist, vice president at RealtyTrac.

Naionally, the ten states with the highest foreclosure rates,
listed from highest to lowest, are: Florida, Nevada, Maryland,
New Jersey, Georgia, Delaware, Ohio, Illinois, Indiana, and South Carolina.

For more information, visit www.realtytrac.com

Mortgage Delinquency & Foreclosure Rates Fall to Lowest Level Since 2008

The delinquency rate for mortgages on 1-to-4 unit residences has decreased to the lowest level since the first quarter of 2008, according to the latest data from the Mortgage Banker’s Association’s National Survey.

The latest data represent activity in the 4th quarter of 2013.

The latest mortgage delinquency rate fell to 6.39% of all loans outstanding, down from 6.41% in the 3rd quarter of 2013, and 7.09% in the 4th quarter of 2012.

The mortgage delinquency rate covers loans that are at least one payment past due, but does not cover loans that are in foreclosure.

Loans in foreclosure fell to 2.68% of all loans in Q4 2013, down from 3.08% in Q3 2013, and 3.74% a year ago.

The current foreclosure rate is also now at the lowest level since 2008.