Number of New
Mortgages in 2014 Plunges 31 Percent From Year Before
A report released Sept. 22 by the Federal Financial Institutions Examination Council shows that nondepository independent mortgage companies accounted for 47 percent of purchase loans for owner-occupants and 42 percent of refinancing loans in 2014, up from 43 percent and 31 percent, respectively, in 2013. The report shows that the total number of mortgages made last year dropped 31 percent from 2013 to 6 million, with refinances down 55 percent and purchase loans up just 4 percent. Nonbank lenders saw their share of the mortgage market rise as large banks like Wells Fargo, JPMorgan Chase, and Bank of America pulled back on lending to all but the most creditworthy borrowers, especially given the large penalties they incurred for mistakes made during the last housing boom. According to the FFIEC, large banks accounted for 32 percent of purchase loans and 38 percent of refinancing loans last year, down from 34 percent and 49 percent, respectively, in 2013. The report also shows that black borrowers accounted for 5.2 percent of purchase loans in 2014, up from 4.8 percent in 2013, while Hispanic-white borrowers accounted for 7.9 percent last year, up from 7.3 percent.
From "Number of New Mortgages in 2014 Plunges 31 Percent From Year Before"
Wall Street Journal (09/22/15) Light, Joe
A report released Sept. 22 by the Federal Financial Institutions Examination Council shows that nondepository independent mortgage companies accounted for 47 percent of purchase loans for owner-occupants and 42 percent of refinancing loans in 2014, up from 43 percent and 31 percent, respectively, in 2013. The report shows that the total number of mortgages made last year dropped 31 percent from 2013 to 6 million, with refinances down 55 percent and purchase loans up just 4 percent. Nonbank lenders saw their share of the mortgage market rise as large banks like Wells Fargo, JPMorgan Chase, and Bank of America pulled back on lending to all but the most creditworthy borrowers, especially given the large penalties they incurred for mistakes made during the last housing boom. According to the FFIEC, large banks accounted for 32 percent of purchase loans and 38 percent of refinancing loans last year, down from 34 percent and 49 percent, respectively, in 2013. The report also shows that black borrowers accounted for 5.2 percent of purchase loans in 2014, up from 4.8 percent in 2013, while Hispanic-white borrowers accounted for 7.9 percent last year, up from 7.3 percent.
From "Number of New Mortgages in 2014 Plunges 31 Percent From Year Before"
Wall Street Journal (09/22/15) Light, Joe
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