Mortgage Loan News – RR Reading Sat, 11 Sep 2021 01:40:00 +0000 en-US hourly 1 Mortgage Loan News – RR Reading 32 32 Republic, (KY) (RBCAA) drops 1.44% on moderate volume on September 10 Sat, 11 Sep 2021 01:40:00 +0000

Republic Bancorp, Inc. (KY) – Class A (NASDAQ: RBCAA) closed at $ 49.34 on Friday after losing $ 0.72 (1.44%) on volume of 27,116 shares. The stock ranged from a high of $ 50.46 to a low of $ 49.23, while Republic’s (KY) market cap now stands at $ 899,604,724.

About Republic Bancorp, Inc. (KY) – Class A

epublic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 42 full-service banking centers and two loan production offices in five states: 28 banking centers in 8 Kentucky communities – Covington, Crestview Hills, Florence, Georgetown, Lexington, Louisville, Shelbyville and Shepherdsville; three banking centers in southern Indiana: Floyds Knobs, Jeffersonville and New Albany; seven banking centers in six communities in Florida (Tampa MSA) – Largo, New Port Richey, St. Petersburg, Seminole, Tampa and Temple Terrace; two banking centers in two communities in Tennessee (Nashville MSA) – Cool Springs and Green Hills, and a loan production office in Brentwood; and two banking centers in two Ohio communities (Cincinnati MSA) – Norwood and West Chester. Bank deposit products include savings, checking and money market accounts; IRA; and CDs. The company provides residential mortgages, home equity loans and lines of credit, as well as commercial real estate loans, C&I loans, business loans and lines of credit, consumer loans for equipment rentals and warehouse lines of credit. Republic offers online banking services to individuals and businesses at Personal mobile banking services include apps for iPhone, Android, iPad and Android tablets, bill payment and mobile deposit.

See the Republic Bancorp, Inc. (KY) – Class A profile for more information.

About the Nasdaq Stock Market

The Nasdaq Stock Market is a global leader in trading data and services, as well as the listing of stocks and options. The Nasdaq is the world’s largest stock exchange for options volume and is home to the five largest US companies – Apple, Microsoft, Amazon, Alphabet and Facebook.

For more information on Republic Bancorp, Inc. (KY) – Class A and to keep up with the latest company updates, you can visit the company profile page here: Republic Bancorp, Inc. (KY ) – Class A Profile. For more information on the financial markets, be sure to visit Equities News. Also, don’t forget to sign up for the Daily Fix to get the best stories delivered to your inbox 5 days a week.

Sources: The chart is provided by TradingView on the basis of prices delayed by 15 minutes. All other data is provided by IEX Cloud as of 8:05 p.m. ET on the day of publication.

The views and opinions expressed in this article are those of the authors and do not represent the views of Readers should not take the author’s statements as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please visit:

Unemployment claims drop to 310,000 – lowest in nearly 18 months

200 Westerners on a Qatar Airways flight from Kabul

Pennsylvania Republican lawmakers launch election integrity probe

President Biden and Congressional Democrats push for civilian climate body

Biden administration to unveil plan to cut prescription drug prices in Medicare

Hurricane Ida toll in Louisiana rises to 26

Minorities and children suffered increased hunger in 2020 despite federal pandemic aid

Australia’s High Court Holds Media Companies Responsible for Third-Party Comments on Their Facebook Pages

Source link

]]> 0
Black Knight: Mortgage Monitor July 2021 Wed, 08 Sep 2021 13:06:29 +0000
  • Driven by the booming housing market, exploitable equity – the amount available to homeowners before reaching a maximum combined loan-to-value ratio (CLTV) of 80% – has jumped almost 40% from the previous year. ‘last year.

  • At $ 9.1 trillion in total – yet another record high – the average mortgage holder now has $ 173,000 in workable equity, an increase of $ 20,000 from the end of the first quarter.

  • Less than 3% of mortgage holders have less than 10% equity – the lowest share ever – with CLTV’s overall weighted average now at 46%, the lowest loan-to-value leverage on record .

  • About 98% of borrowers in active forbearance have at least 10% equity, compared to the Great Recession where 40% of all mortgage holders had less than 10% equity with 28% fully subscribed

  • Even adding 18 months of principal, interest, taxes and deferred insurance payments to the total amount of debt, only 7% of borrowers withholding would have less than 10% of their home equity.

  • More than $ 63 billion in equity was withdrawn via 1.1 million cash-out refinances initiated in the second quarter, the largest quarterly volume since mid-2007

JACKSONVILLE, Florida – September 8, 2021 – Today the Data analysis division of Dark Knight, Inc. (NYSE: BKI) released its latest Mortgage monitoring report, based on the company’s industry-leading mortgage, real estate and public records data sets. With comprehensive second quarter data and analyzed, this month’s report examines incredible growth in the nation’s levels of workable equity – the amount available to homeowners with mortgages to borrow on while retaining at least 20% equity. in their homes. According to Black Knight Data & Analytics President Ben Graboske, the continued heat in the housing market has driven levels of exploitable equity to all-time highs in the second quarter of 2021.

“Workable equity increased 37% year-on-year in the second quarter of 2021, driven by the increase in home values ​​during the quarter,” Graboske said. “According to our HPI Black Knight, at the end of June, home values ​​were up almost 20% from the previous year and 7.4% in the second quarter alone. As a result, already at a record high of $ 8.1 trillion at the end of the first quarter, U.S. homeowners with mortgages earned an additional $ 1 trillion in workable equity in the second quarter alone. This is by far the strongest growth we’ve ever seen and equates to some $ 173,000 in equity available to the average mortgage holder, an increase of $ 20,000 in just three months.

“A rising tide lifts all boats as they say, including forbearance owners – whose ability to resume making payments when forbearance ends will likely be a key driver of the country’s overall economic recovery COVID-19 . Some 98% of forborne homeowners now have at least 10% of their home equity. Even when we add 18 months of canceled payments – including principal, interest, taxes and insurance – the share with less than 10% equity only jumps to 7%, or roughly 135,000 homeowners. This is a radically different dynamic from the worst of the Great Recession, when over 40% of all mortgage holders had less than 10% equity and 28% were completely under water. These strong equity positions should help limit the volume of distressed capital inflows into the real estate market and provide a strong incentive for homeowners to start making their mortgage payments again, even if they need to be curtailed by a modification.

Looking at the original second-quarter data, the report also found signs that owners might be less hesitant to operate their available equity stores. While mortgage originations fell 5% from the first quarter of 2021, the fourth consecutive quarter with more than $ 1 trillion in originations was marked and the fifth consecutive quarter with at least 2.2 million. refinancings, including 1.1 million withdrawal refinances, the largest quarterly volume of this type in nearly 15 years. However, Black Knight retention data shows that cash refinances remain the most difficult commodity to hold in a provider’s portfolio. Additionally, recent expansions and enhancements to McDash’s Mortgage Performance Database have given Black Knight greater visibility into the performance of banks compared to non-banks, finding that the latter are doing much better. to retain customers in general, but to cash in refinancing customers in particular. Much more detail can be found in July 2021’s Black Knight Mortgage monitoring report.

About the Mortgage Monitor

Black Knight’s Data & Analytics division manages the nation’s leading repository of lending-level residential mortgage data and performance information covering the majority of the global market, including tens of millions of loans across the country. spectrum of credit products and over 160 million historical records. . The combined home price and real estate data overview from Black Knight HPI and Collateral Analytics provides one of the most comprehensive, accurate and timely home price metrics available, covering 95% of US residential properties up to level. postal code. Additionally, the company maintains one of the strongest public property records databases available, covering 99.9% of the U.S. population and households in more than 3,100 counties.

Black Knight’s research experts carefully analyze this data to produce a summary supplemented with dozens of tables and charts that reflect trends and point observations for the Monthly Mortgage Watch Report. To view the full report, visit:

About Black Knight

Black Knight, Inc. (NYSE: BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and services and real estate industries, as well as in capital markets and secondary. Businesses leverage our robust integrated solutions throughout the homeownership lifecycle to help retain existing customers, gain new customers, mitigate risk and operate more efficiently.

Our customers rely on our proven, comprehensive and scalable products and our unwavering commitment to providing superior customer support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit

Source link

]]> 0
Mortgage and real estate news this week Sat, 04 Sep 2021 04:01:53 +0000

It’s the unofficial last weekend of summer, so you should probably be enjoying a barbecue or lounging on a beach rather than surfing the internet – but maybe you’re at a barbecue and your uncle excitable fumes in a disagreeable way. Then you are welcome for this educational excuse to take a break. Here is the latest news on what’s happening in the mortgage and real estate world.

1. What to expect from mortgage rates this month

Rates have been going down for a few weeks, but this trend should reverse in the coming weeks and interest should be higher by the end of the year. This means this month is a great time to take advantage of low rates and refinance if you still haven’t. Otherwise, you’ll likely be stuck in a higher-than-necessary mortgage rate for years to come.

Read the story.

2. For now, however, rates remain low

In the most recent Bankrate Weekly Survey, the average interest rate on a 30-year fixed loan fell for the third week in a row, standing just above 3%. As mentioned above, this means that now is the perfect time to consider refinancing. These low rates will inevitably evaporate.

Read the story.

3. Pay your mortgage with digital currency

One of the country’s largest mortgage lenders plans to let customers make their monthly payments using Bitcoin by the end of the year. United Wholesale Mortgage said the move would give its customers more flexibility to make their payments, but experts warn that Bitcoin’s volatile values ​​could make the option unattractive, if not overly complicated, for most borrowers.

Read the story.

4. The best mortgage lenders this month

If you’re looking to refinance in the next few weeks, Bankrate offers some recommendations on how to go. Keep in mind that the major lenders this month all require payments in traditional currency. Check out our rankings for the pros and cons and to help you get started shopping.

Read the story.

5. Everything You Need To Know About Home Equity Loans And Taxes

The short version is this: In many cases, the interest on a home loan is tax deductible. It is a great advantage to mine the value of your property because it means that you can get some of that value back as part of your tax return. Check out the full guide to find out how home equity loan tax deductions work.

Read the story.

Source link

]]> 0
The Banque des Régions offers assistance to clients; announcement of donations Wed, 01 Sep 2021 16:22:41 +0000

Bank of regions on Wednesday announced a series of financial services to help people and businesses affected by Hurricane Ida.

In addition, the Regions Foundation, a nonprofit initiative funded primarily by the Regions Bank, announced a commitment of $ 250,000 in grants to organizations providing disaster relief.

Special banking services:
Regions Bank is currently assessing the impacts on its branch network in areas affected by the storm. While the schedule for reopening individual branches in the hardest hit areas will change in the coming days, banking services remain available 24 hours a day via [] and the Mobile application of the regions []. Services are also available by calling 1-800-REGIONS or specific departments of the bank, as noted below.

The disaster recovery financial services [] offered by the Banque des Régions in the affected areas1 are available for a limited time starting September 1, 2021. The areas covered by these services may be expanded to include additional communities based on ongoing damage assessments. Among the services:

  • Loan programs for the purchase and renovation of disaster relief mortgages are available.
  • The regions fees will be waived when customers in the regions use the ATMs of other banks in the affected areas for at least 15 days from September 1. (Note: Fees charged by other banks or ATM owners may still apply.)
  • No check cashing fees will be charged for checks issued by FEMA when cashed at a regional branch.2
  • Payment deferrals for credit card holders may be available depending on individual circumstances.3
  • Personal and business loan repayment assistance may be available depending on individual circumstances.3
  • Business loan payment deferrals of up to 90 days may be available depending on individual circumstances.3
  • CD withdrawal without penalty is available upon request (except within seven days of issuance or renewal).
  • An interest rate discount of 0.50% is available until November 30, 2021 on new unsecured personal loans when customers request it in a branch or by phone.4
  • An interest rate discount of 0.50% on standard rates is available until November 30, 2021 for new business loans or lines of credit up to $ 1 million to meet trade-in needs in affected areas.4
  • An interest rate rebate of 0.50% is available until November 30, 2021 on new unsecured commercial term loans up to $ 50,000 with terms of up to 36 months, including waiver set-up costs and loan documents, as well as options for the first payments to be deferred for up to 90 days.4
  • To verify [] for an updated list of areas where these offers are available as damage assessments continue.

In addition to the above disaster recovery services, Regions Bank teams can be reached at the following numbers for personalized advice on a range of lending products, including:

  • Mortgages, Home Equity Loans & Margins: 1-800-748-9498
  • Other consumer loans: 1-866-298-1113
  • Any other banking need: 1-800-411-9393

Marta Self, executive director of the Foundation of the Regions, said the total of $ 250,000 will be distributed among several agencies meeting short and long term needs. Initial grants out of the total of $ 250,000 will include:

“Nonprofits and humanitarian organizations are doing an incredible job of meeting urgent needs, and through these grants, our goal at the Regions Foundation is to provide resources that will support their real-time response to the storm,” Self said. “Additional needs will develop as our communities rebuild themselves stronger, and the Foundation of the Regions will be there to support ongoing work in the future. We also encourage individuals and businesses who are in a position to donate to think about how they can also support nonprofits that are on the front lines in helping those affected by Hurricane Ida. “

Source link

]]> 0
Mortgage rates today, August 28 and rate forecasts for next week Sat, 28 Aug 2021 14:14:10 +0000

Today’s Mortgage and Refinance Rates

Average mortgage rates fell yesterday. But the rises and falls of the week canceled each other out. And the average Friday night rate was exactly the same as the previous Friday night, according to figures from the Mortgage News Daily.

And mortgage rates next week can also change very little. Yes, there will be the usual ups and downs. But rates may well go nowhere. Of course, there is always a possibility that an unforeseen event will arise that disrupts that tranquility and disrupts those rates in a decisive way.

Find and lock in a low rate (August 28, 2021)

Current mortgage and refinancing rates

Program Mortgage rate APR* Switch
Conventional 30 years fixed 2.808% 2.808% -0.01%
Conventional 15 years fixed 1.995% 1.996% -0.12%
Conventional 20 years fixed 2,391% 2,391% -0.1%
Conventional 10 years fixed 1.875% 1,922% -0.04%
30-year fixed FHA 2.688% 3.343% Unchanged
15 years fixed FHA 2,431% 3.032% -0.01%
5/1 ARM FHA 2.5% 3,201% Unchanged
Fixed VA over 30 years 2.25% 2,421% -0.07%
VA fixed 15 years 2.25% 2,571% Unchanged
5/1 ARM VA 2.5% 2,379% Unchanged
Prices are provided by our network of partners and may not reflect the market. Your rate may be different. Click here for a personalized quote. See our pricing assumptions here.

Find and lock in a low rate (August 28, 2021)

COVID-19 Mortgage Updates: Mortgage lenders change rates and rules due to COVID-19. To see the latest information on the impact of the coronavirus on your home loan, click here.

Should You Lock In A Mortgage Rate Today?

In the absence of something unexpected, August is likely to end with mortgage rates a little higher than at the start. But the movements of the past few weeks have been smooth and directionless. So you probably haven’t lost or gained much by floating your rate.

But the risks of continuing in this way remain real. Because almost all the experts predict more or less important overall increases. The problem is, no one knows when.

My personal recommendations therefore remain:

  • LOCK if the closure 7 days
  • LOCK if the closure 15 days
  • LOCK if the closure 30 days
  • FLOAT if the closure 45 days
  • FLOAT if the closure 60 days

However, with so much uncertainty right now, your instincts could easily turn out to be as good as mine, if not better. So let your instincts and your personal risk tolerance guide you.

What changes current mortgage rates

Thus, mortgage rates remain calm. They continue to drift up and down but barely move when measured over weeks.

And, this week, they dodged a bullet when Federal Reserve Chairman Jerome Powell’s speech yesterday revealed nothing new. He confirmed that the Fed will start slowing down and later stopping (“cutting”) its efforts to keep mortgage rates artificially low later this year. But everyone already knew that.

And regular readers will be relieved that I can finally stop repeating the reduction every day. However, the problem has not gone away and will return in a few weeks.

Waiting for

In the meantime, mortgage rates will be affected by the economic news. But that too is a less direct relationship than it usually is.

Under normal circumstances, mortgage rates go up on good economic news and fall on bad news. But that’s not always the case right now.

Take, for example, next Friday’s report on the employment situation. It is often the most influential of all monthly economic reports, sometimes rivaled only by those on inflation. And a great report on Friday (many more jobs and higher average hourly earnings) would normally push mortgage rates higher.

But that may not be the case this time around. Because investors always have an eye on the Fed. And great jobs data could bring forward the dates when it stops keeping mortgage rates and Treasury yields low – and accelerate when it starts raising its own interest rates.

Thus, some investors see the good economic news as damaging to their interests because it potentially hastens the end of the Fed’s easy money policies. And they are enjoying this holiday in particular.

The Fed is unlikely to hike rates until much of 2022, or maybe sometime in 23. And it’s important to differentiate between the Fed’s own interest rates and mortgage rates. A change in Fed rates tends to directly influence the rates on variable rate loans, including credit cards, auto loans, and the like. But mortgage rates are determined differently and largely independently of the Fed (see below for more details).

Economic reports next week

Please see the final paragraphs for more information on next week’s major economic report, Friday’s Jobs Report. It is difficult to overestimate the influence this can have.

None of the other economic reports listed below are likely to cause much movement in the markets unless they include some incredibly good or bad data. Plus, regular readers will know that investors have ignored most economic reports in recent months. Thus, the effects of the following may be different from normal:

  • Tuesday – Consumer Confidence Index in August
  • Wednesday – August ADP (Private Sector Jobs) and Manufacturing Index report from the Institute for Supply Management (ISM). Plus July construction expenses
  • Thursday – New weekly unemployment insurance claims until August 28. More factory orders in July
  • Friday – Report on the employment situation in August, including non-farm wages, unemployment rate and average hourly earnings. Plus ISM services index, also for August

Once again, Friday is the big day.

Find and lock in a low rate (August 28, 2021)

Mortgage interest rate forecasts for next week

Now that the tapering is complete (for a few weeks), I see little reason to expect any sharp changes in mortgage rates anytime soon. And I suspect that mortgage rates next week will be unchanged or barely changed.

Mortgage and refinance rates generally move in tandem. And a growing gap between the two has been largely eliminated by the recent removal of unfavorable refinancing fees from the market.

How your mortgage interest rate is determined

Mortgage and refinancing rates are generally determined by prices in a secondary market (similar to stock or bond markets) where mortgage-backed securities are traded.

And it depends heavily on the economy. Mortgage rates therefore tend to be high when things are going well and low when the economy is struggling.

Your part

But you play an important role in determining your own mortgage rate in five ways. And you can significantly affect it by:

  1. Find Your Best Mortgage Rate – They Vary Dramatically From Lender to Lender
  2. Increase Your Credit Score – Even a Small Bump Can Make a Big Difference in Your Rate and Payments
  3. Save the Biggest Down Payment Possible – Lenders love you to have real skin in this game
  4. Keep your other loans small – The lower your other monthly commitments, the larger the mortgage you can afford
  5. Choosing Your Mortgage Carefully – Are you better off with a conventional, FHA, VA, USDA, jumbo or whatever loan?

Time spent lining up these ducks can earn you lower rates.

Remember, it’s not just a mortgage rate

Be sure to count all of your upcoming homeownership costs when determining how much mortgage you can afford. So focus on your “PITI”. It’s your Pmain (reimburses the amount you borrowed), Iinterest (the loan price), (property) Taxes, and (owners) Iassurance. Our mortgage calculator can help.

Depending on the type of mortgage you have and the amount of your down payment, you may also need to pay for mortgage default insurance. And that can easily reach three digits each month.

But there are other potential costs. You will therefore have to pay homeowners association dues if you choose to live somewhere with an HOA. And, wherever you live, you should expect repair and maintenance costs. There is no owner to call in case of a problem!

Finally, you will have a hard time forgetting the closing costs. You can see which are reflected in the Annual Percentage Rate (APR) that will be shown to you. Because it effectively spreads them out over the life of your loan, making it higher than your normal mortgage rate.

But you may be able to get help with those closing costs. and your down payment, especially if you are a first-time buyer. Read:

Down payment assistance programs in each state for 2021

Mortgage rate methodology

Mortgage Reports receive daily rates based on selected criteria from multiple lending partners. We arrive at an average rate and an APR for each type of loan to display in our graph. Because we average a range of rates, it gives you a better idea of ​​what you might find in the market. In addition, we average the rates for the same types of loans. For example, fixed FHA with fixed FHA. The result is a good overview of daily rates and how they have changed over time.

Source link

]]> 0
Angel Oak Mortgage, Inc. Completes $ 316.6 Million Non-QM Residential Loan Securitization | Business Wed, 25 Aug 2021 13:01:56 +0000

ATLANTA – (BUSINESS WIRE) – August 25, 2021–

Angel Oak Mortgage, Inc. (NYSE: AOMR) (the “Company”), a leading real estate finance company focused on acquiring and investing in senior agencyless loans and other asset-related assets. mortgages in the US mortgage market, announces the closing of a securitization of $ 316.6 million backed by a pool of residential mortgage loans. The securitization (AOMT 2021-4) was the Company’s sixth securitization and its first single securitization, as well as the twenty-fifth residential securitization in total carried out under the AOMT platform of its subsidiary.

“This securitization has been executed at very high prices as investors continue to appreciate non-QM assets and Angel Oak’s track record of delivering high quality transactions,” said Brandon Filson, Chief Financial Officer of ‘Angel Oak. “Housing demand remains strong across the country, and we believe we can continue to implement our loan acquisition and financing strategies in the second half of 2021 and beyond.”

The Company has placed residential mortgage-backed securities with a face value of $ 306.4 million at a weighted average financing cost of 1.12%. The residual value and the economic return of the collateral will be retained by the Company. The loans underlying the securitization had a weighted average coupon of 5.24%. At the close of the transaction, AWM 2021-4 consisted of 632 loans, almost all of which originated from Angel Oak subsidiaries. The securitization had an average credit score of 739, a loan-to-value ratio of 73.8% and a debt-to-income ratio of 33.3%. The transaction was rated by Fitch and Kroll, with the senior tranche receiving an AAA rating.

Forward-looking statements

This press release contains certain forward-looking statements which are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company’s investments and its financing needs and arrangements. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “may”, “will”, “should”, “possible”, “intend”, “expect”, “s ‘strive’, “seek”, “” “,” estimate “,” believe “,” could “,” project “,” predict “and” continue “or by the negative of these words and expressions or other words or similar expressions. Forward-looking statements are based on certain assumptions; discuss future expectations; describe existing or future plans and strategies; contain projections of operating results, liquidity and / or financial position; or state other forward-looking information. The Company’s ability to predict future events or conditions, their impact, or the actual effect of existing or future plans or strategies is inherently uncertain, particularly given the uncertainties created by the COVID-19 pandemic, including the projected impact of COVID-19. pandemic on the business, financial results and performance of the Company. Although the Company believes that these forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those stated or implied by these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the views of the Company only as of the date of this press release. Additional information regarding factors that could cause actual results and performance to differ materially from these forward-looking statements is contained from time to time in documents filed by the Company with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of forward-looking statements. The Company does not undertake to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.

About Angel Oak Mortgage, Inc.

Angel Oak Mortgage, Inc. is a real estate finance company focused on acquiring and investing in senior non-agency loans and other mortgage-related assets in the US mortgage market. The Company’s objective is to generate attractive risk-adjusted returns to its shareholders through cash distributions and capital appreciation throughout the interest rate and credit cycles. The Company is managed and externally advised by a subsidiary of Angel Oak Capital Advisors, LLC, which, together with its subsidiaries, is a leading alternative credit manager with a vertically integrated mortgage origination platform.

View source version on

CONTACT: Investors:


investor Media:

Bernardo Soriano, Gregory FCA for Angel Oak Mortgage, Inc.

914-656-3880 Company contact:

Randy Chrisman, Director of Marketing and Corporate Investor Relations, Angel Oak Companies




SOURCE: Angel Oak Mortgage REIT, Inc.

Copyright Business Wire 2021.

PUB: 08/25/2021 09: 00 / DISC: 08/25/2021 09:01

Copyright Business Wire 2021.

Source link

]]> 0
South Korea’s Youth Debt Frenzy Shows No Signs Of Slowing As Rate Hike Looms | Invest News Wed, 25 Aug 2021 03:02:00 +0000

By Cynthia Kim and Joori Roh

SEOUL (Reuters) – When South Korea announced new credit restrictions last month, Joe Park, a 34-year-old grocery chain purchasing manager, was quick to borrow more money before the more stringent rules do not take effect.

After his loan broker said no, he looked for alternative financing, including much more expensive credit card options, knowing that such loans would leave him with less money for food and savings.

A debt frenzy fueled by young Koreans like Park desperate to invest is one of the trends worrying the country’s central bank, which could achieve its first interest rate hike in three years on Thursday.

“It is extremely unfair that they are lowering loan limits now. My credit rating is perfect and I am prepared to pay more interest if key rates go up,” said Park, who says he did. never been late on his bills since he started. worked five years ago. “So why cut off loans? Am I in a socialist country?”

Of particular concern to policymakers is the fact that recent restrictions appear to have had little immediate impact on such borrowing.

Bank lending to households for mortgages, stocks and living expenses increased by 168.6 trillion won from the previous year to a record 1,805.9 trillion won (1.54 trillion won dollars) during the June quarter, roughly the equivalent of the country’s GDP and the largest annual increase since the creation of the central bank. publish relevant data in 2003.

Even after the government imposed new limits on bank lending in July, household lending increased by 97 trillion won last month alone, more than the 6.3 trillion won in June before entry into force. force of the new rules.

Many millennials like Park have resorted to “bittoo,” a Korean slang for borrowing to invest, as the only way out of richer baby boomer parents, after seeing President Moon Jae-in’s policies aimed at making money. cheaper housing fail over and over again.

Park withdrew 120 million won ($ 102,263.43) from his overdrawn account to trade stocks, but his frustration at being left out of one of the world’s hottest real estate markets turned to desperation.

Analysts say the debt surge shows no signs of slowing down, even after local lending rates started on their upward trajectory a few weeks ago and policymakers signaled higher rates.

The risks among young Koreans have been accumulating for some time.

Those under 40 bought 272,638 apartments in 2020, a jump of almost 77% from the previous year, surpassing the increases of 64% and 63% seen respectively among people in their 40s and 50s.

People in their 30s are highly at risk as the most indebted relative to their income, with total borrowing amounting to around 270% of their annual income, according to central bank data.

Loan brokers say more clients are turning to high-cost lenders, which will eventually worsen household finances and affect private consumption, which makes up about half of the economy.

“As banks cut back on loans, those in need of money will look for other ways,” said Kong Dong-rak, an economist at Daishin Securities. “Some will turn to their parents, then expensive lenders to get around the restrictions and end up with greater risk.”

Failed to quell real estate speculation after dozens of tax cuts and separate loans, the government last month urged the public to end its debt frenzy.

The Financial Services Commission (FSC) further tightened in July the maximum amount of bank loans individuals can take out relative to their income to 40%, and promised to tighten limits further as debt threatens financial stability.

Local banks are significantly reducing loans.

The Nonghyup Bank, popular with working class and farmers, suspended mortgages and loans for rent deposits last week. Woori Bank also said it had stopped approving mortgages until the end of September, while Kakao Bank was among those considering lending restrictions, the banks told Reuters.

All that seems to have done is push borrowers to more expensive lenders who are not bound by the same restrictions.

“A lot of my clients with the highest credit scores are going to take credit card loans because I had to turn them down,” said one loan broker who agreed to be identified only by name from the Lee family to Standard Chartered Bank Korea.

In July, Bank of Korea Governor Lee Ju-yeol said most of the bank’s board agreed it was time to make financial imbalances a priority and that adjustment policies could help curb betting in the real estate market.

Last week, new FSC chief Koh Seung-beom pledged to take action and said household debt management was his top priority.

For Park, it’s ironic that stricter lending standards make things less affordable.

“I want to borrow more because everything has gone up, be it rents, inventory, but not my salary. I don’t understand why the government doesn’t understand this.”

(Reporting by Cynthia Kim, Joori Roh; Editing by Sam Holmes)

Copyright 2021 Thomson Reuters.

Source link

]]> 0
Geneva Financial announces new mortgage branch in Colorado led by Lynn Whipple Mon, 23 Aug 2021 09:00:00 +0000

“We are delighted to join the Geneva team.” Colorado Agency Director Lynn whipple declared. “There is really nothing like the care and the human touch Geneva is famous for.”

Based on Montrose, CO, Lynn and her new branch proudly serve homebuyers statewide. The new branch will continue Geneva exceptional service and a broad product offering through countless buyer and owner driven products including conventional products, FHA, VA, USDA, Refinancing, Reverse, Jumbo Loans, Condo Financing, and more.

In her spare time, Lynn enjoys spending time with her dogs, mountain biking and enjoying from Colorado big spaces. But most of all, Lynn has a passion for helping people. From first-time homebuyers to seasoned investors, Lynn and her team of Geneva goes above and beyond to help clients achieve their homeownership dreams.

Geneva Financial Home Loans is currently expanding in all markets and is looking for branch managers and loan originators through United States seek to advance their mortgage careers. For more information on the opportunities, visit

About Genève Financière

Founded in 2007 by Aaron Van Trojen, Geneva Financial (NMLS 42056) is a direct mortgage lender with registered office at Chandler, Arizona with over 130 branches in 45 states. Our mission at Geneva Financial is to approach every aspect of our business from the inside out. With a forward-thinking mindset, we focus on our loan originators and support staff first to ensure an unbeatable experience for our clients.

Our core values ​​were created as a daily reminder to operate with the inside-out approach in mind. Core Value # 1 is the backbone of all of our core values, mission and brand vision: Home Loans Powered by Humans®. Find out more about Geneva financial mortgage real estate loans on

SOURCE Geneva Financial Home Loans

Related links

Source link

]]> 0
Mortgage rates are slightly lower, with refinances available at less than 3% and even 2% Sun, 22 Aug 2021 15:30:00 +0000

Mortgage rates are slightly lower, with refinances available at less than 3% and even 2%

Mortgage rates fell, a week after their skyrocketing, according to a closely watched survey. The setback gives homeowners more time to lock in low refinance rates.

Borrowers who shop find 30-year refi loans at rates well below 3% and 15-year mortgages at even lower rates.

But interest rates are expected to rise in the coming weeks and months, which means the days of super cheap refinance rate are numbered.

30-year mortgage rates

The concept of falling real estate market.  Reduced interest on the mortgage.  Small wooden houses with red arrow down.

Andrii Yalanskyi / Shutterstock

Rates on America’s most popular home loan, the 30-year fixed-rate mortgage, fell to an average of 2.86% last week, from 2.87% a week earlier, the giant said. mortgage Freddie Mac. reported Thursday. The typical rate remains relatively close to the all-time low in January of 2.65%.

A year ago, 30-year rates were on average 2.99% more expensive.

Mortgage rates had risen sharply in the previous week, but stabilized as a disappointing US retail sales report caused US Treasury bond interest rates to stagnate, says economist George Ratiu principal at Rates tend to follow the yield on 10-year treasury bills.

Additionally, “mortgage rates responded to subsequent investor concerns about declining consumer confidence and increasing delta-variant COVID cases,” Ratiu said.

15-year mortgage rates

Rates on 15-year fixed-rate loans rose to an average of 2.16% last week, from 2.15%. They are not far from their recent all-time low of 2.10%.

Fifteen year mortgages are a popular choice for refinancing loans. And because of how averages work, 15-year loans can be found at rates below the current average of 2.16% – around 2%, or even less.

Short-term home loans have much higher monthly payments than 30-year mortgages. But borrowers pay off their loans faster and can save a lot on interest.

A year ago, the 15-year fixed rate was on average a much steeper slope of 2.54%.

5/1 adjustable mortgage rates

ARM adjustable rate mortgage papers in the office.

Vitalii Vodolazskyi / Shutterstock

The cost of 5/1 variable rate mortgages, or ARMs, has gone down.

A 5/1 ARM last week had an average introductory interest rate of 2.43%, down from 2.44% the week before, Freddie Mac says. At the same time last year, 5/1 ARMs were considerably more expensive, with an average rate of 2.91%.

Variable rate mortgages have two phases. During the first, you pay a fixed interest rate which is usually lower than what you would get with a 30 year fixed rate loan. Once this period has elapsed, your ARM rate will adjust, up or down, at regular intervals.

An ARM 5/1 would charge you the same mortgage rate for the first five years. After that, your rate will be adjusted every (one) year.

Experts say mortgage rates will rise soon

Mortgage rates are taking a downtime, but borrowers shouldn’t be complacent.

As it sees more signs the economy is improving, the Federal Reserve should start withdrawing its emergency policies that have kept interest rates at historically low levels during the pandemic, Realtor’s Ratiu said .

“This means that we can expect rates to resume their mid-March hike above 3.0% closer to the end of the year and into 2022,” he said.

Freddie mac recently predicted 30-year fixed rate mortgages will average 3.4% by the end of 2021 – then continue to rise through 2022, on the verge of averaging 3.8% d ‘by the end of next year.

So time may be running out for homeowners to reduce their mortgage payments by refinancing them. A recent Zillow poll found more than three-quarters of homeowners never refinanced in the past year with ultra-low rates; nearly half of those who have done so are saving $ 300 or more per month.

How to take advantage of a low mortgage rate while you can

An African-American couple browses the website on a laptop, looking for low mortgage rates.

GaudiLab / Shutterstock

If you’ve delayed refinancing but decide it’s finally time to stop procrastinating, follow these steps to get the lowest mortgage rate possible.

The best rates usually go to borrowers with the strongest credit, so take a look at your credit score to see where you stand. Nowadays it is very easy to check your credit score for free – so take a look and determine if you need to improve your creditworthiness before you start looking for loan deals.

Mortgage lenders may not want to work with you if you already have a lot of high interest debt, including credit cards. Consider consolidating these balances into one low interest debt consolidation loan, to reduce your interest costs and eliminate your debt faster.

Once it’s time to shop for a mortgage, collect offers from multiple lenders to find the best rate for your area and for someone with your credit profile. Studies by Freddie Mac and others have shown that comparing five or more offers is key to getting the most favorable rate on a mortgage.

Then a little more comparison might help you uncover a better negotiate your home insurance it could save you hundreds of dollars a year.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Source link

]]> 0
US mortgage rates hold ahead of Jackson Hole Symposium Sun, 22 Aug 2021 06:44:10 +0000

Mortgage rates fell after rising only on the 2sd times in 7 weeks in the previous week.

In the week ending 19the In August, fixed 30-year rates fell 1 basis point to 2.86%. Mortgage rates had jumped 10 basis points the previous week.

30-year mortgage rates have only risen past the 3% mark once since 21st April.

Compared to the same period last year, fixed 30-year rates fell 13 basis points.

Fixed 30-year rates are still down 208 basis points since the last peak in November 2018 at 4.94%.

Economic data of the week

The first half of the week was relatively busy on the economic data front. Key US statistics included manufacturing figures for New York State, industrial production, and retail sales figures.

The statistics were negative, with retail sales falling 1.0% in July from an expected decline of 0.3%. Retail sales increased 0.7% in June.

In August, the NY Empire State Manufacturing index slipped from 43.0 to 18.3% against an expected decline to 29.0.

On the monetary policy front, the minutes of the FOMC meeting revealed increased debate on reducing the asset purchase program. After impressive salaries for NFPs, chatter from FOMC members during the week weighed on riskier assets, with members citing the need to act.

Moreover, economic data from China added to concerns about the economic recovery earlier this week.

Capital investment increased 6.4% in July year on year, compared to 8.3% in June. Retail sales rose 8.5% from 12.6% in June.

Freddie Mac Pricing

Average weekly rates for new mortgages as of the 19e August were cited by Freddie mac to be:

According to Freddie Mac,

  • Mortgage rates remained relatively stable during the week. Housing is in a phase of the economic cycle similar to that of many other consumer goods.

  • While there is strong latent demand, the low supply has caused prices to increase as shortages restrict the volume of sales activity that would otherwise occur.

Mortgage Bankers Association rate

For the week ending 13e August, the rates were:

  • The 30-year average interest rates set with compliant loan balances fell from 2.99% to 3.06. Points increased from 0.30 to 0.34 (including origination fees) for LTV loans at 80%.

  • The 30-year average fixed mortgage rates guaranteed by the FHA fell from 3.06% to 3.15%. Points increased from 0.27 to 0.31 (including origination fees) for LTV loans at 80%.

  • The 30-year average rates for jumbo loan balances fell from 3.15% to 3.19%. Points increased from 0.29 to 0.26 (including origination fees) for LTV loans at 80%.

Weekly figures released by the Mortgage Bankers Association showed that the Composite Market Index, which is a measure of mortgage application volume, fell 3.9% in the week ending the 13th.e August. Over the previous week, the index had risen 2.8%.

The refinancing index fell 5% and was 8% lower than a week earlier. The index had risen 3% the week before.

In the week ending 13e In August, the refinancing share of mortgage activity fell from 68.0% to 67.3%. The share had fallen from 67.6% to 68.0% the previous week.

According to the MBA,

  • Mortgage rates hit their highest level in about a month, with the 30-year fixed rate surpassing 3.0%.

  • Rates followed an overall increase in Treasury yields last week, which started high from the strong July jobs report before slowing in response to weaker consumer sentiment and concerns about COVID-19.

  • Purchase requisitions have seen mixed results and, despite a second consecutive weekly decline, average loan sizes remain close to record levels.

  • This is a persistent sign that selling prices are still high, driven by fierce competition leading to acceleration in house price growth.

For the coming week

The preliminary private sector PMIs for August on Monday and core durable goods orders on Tuesday will be the focus of attention.

Expect the services PMI and core durable goods orders to be key to the economic calendar.

On the monetary policy front, the chatter of FOMC members ahead of the Fed’s Jackson Hole Symposium will also have a big impact on yields.

This item was originally posted on FX Empire

More from FXEMPIRE:

Source link

]]> 0