Mortgage originations expected to show a robust 2016
Mortgage originations are expected to end 2016 in good health while delinquency rates have fallen sharply.
A report from TransUnion says that the serious delinquency rate for mortgages fell to 2.3 per cent in the second quarter of 2016, down 18 per cent from the same period of 2015.
The figures reverse 5 years of increasing rates although that continued in North Dakota, Wyoming and West Virginia.
“The mortgage sector continues to perform well, and we expect originations to be more robust when the full Q2 numbers become available. This is mostly due to the unusually low interest rates available as a result of Brexit and other macroeconomic factors,” commented TransUnion mortgage business leader Joe Mellman. “While the mortgage sector performs well, we continue to pay special attention to states impacted by the energy crisis. States with economies heavily reliant on oil and energy are bucking the trend and experiencing higher delinquency rates.”
Average mortgage debt per borrower continued to grow, rising 2.3% in the last year to $192,749.
Real estate appraisers oppose PACE loan changes
The Appraisal Institute says it opposes the federal government’s recent changes to Property Assessed Clean Energy (PACE) loans.
The real estate appraisers’ industry body, along with other trade associations, says that recent action by the HUD on behalf of the FHA
should be suspended.
“Our associations support responsible efforts to provide homeowners with affordable and accessible financing for energy efficient home improvements, and sounder alternatives to the FHA
’s and VA
’s new PACE guidelines already exist,” the groups wrote in a to Housing and Urban Development Secretary Julian Castro and Veterans Affairs Secretary Robert A. McDonald.
The groups also noted that PACE loans “are not typically accompanied by federal Consumer Financial Protection Bureau disclosures and protections associated with home mortgages, including the new Know Before You Owe disclosures, right of rescission protections, or the Ability to Repay standards.”
Real estate tycoon turned judge makes $20 million on home sale
Andrew Borrock, the real estate investor who became a judge following the financial crisis, has sold his New York home for almost $20 million more than he paid for it in 2003.
The 20,00 square foot Water Mill mansion with 8 bedrooms and 10.5 bathrooms was sold for $23 million.
While the profit is large, it is well below the $58.5 million that Borrock was hoping for in 2010 according to the New York Post. It’s also a far cry from the $250 million made when he sold 14 Penn Plaza in 2007.