MReport April 2019

TheMReport — News and strategies for the evolving mortgage marketplace.

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8 | TH E M R EP O RT Trends and Challenges From the loans millennials are seeking out to signs of inventory relief, here's a look at where the market is headed. 1 Millennial Purchase Preferences According to Ellie Mae's Millennial Tracker, the total number of pur- chase loans for this demographic rose 4 percent year-over-year, accounting for 88 percent of all millennial loans closed. 2 QC Conundrums According to an analysis by MetaSource, three common quality control issues that trouble lenders are tolerance violation, calculating cash-to-close, and tim- ing violations. 3 Defects on the Rise The First American Loan Application Defect Index revealed a 7.4 percent month-over-month increase in the frequency of de- fects, fraudulence, and misrepresen- tation in the information submitted in mortgage loan applications. 4 Delinquencies Are Another Story Black Knight's Mortgage Monitor Report revealed that 3.88 percent of mortgage loans across the na- tion were delinquent at the end of 2018, down 18 percent from the previous year. 5 No Farewell to ARMS Ellie Mae's Origination Insight Report noted record-high numbers for the percentage of adjustable-rate mortgages (ARMs) closed at 9.2 percent—a significant step up over the previous year's 5.6 percent share. 6 Good News for Lenders According to a CoreLogic re- port, the average payment on mort- gages jumped up by 17 percent, with mortgage payments outpacing home prices faster than ever. 7 The Borrower POV According to the Consumer Financial Protection Bureau, the primary mortgage-related headaches consumer logged included troubles with receiving periodic mortgage statements, incorrect data on statements, and challenges associated with securing mortgage loan assistance. 8 Good News, Bad News Zillow reported that more than a third of homebuyers now make more than $100,000. However, nearly 3.5 million fewer households can afford a typical home now than they could in 2012. 9 Demand, Meet Supply The National Housing Report from RE/MAX revealed that housing inventory increased 4.6 percent year-over-year in December, marking the first time in about a decade that a year ended with more inventory than the previous December. 10 Not Going Anywhere According to LendingTree Chief Economist Tendayi Kapfidze, homeowners have been in their houses for about seven years on average. INDUSTRY SPOTLIGHT

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