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Lenders Rejecting Mortgage Applications Due to Soaring Costs

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According to a report by Bloomberg News, many more individuals have had their mortgage applications denied in recent months than ever before.

“The biggest thing people are suffering from is the cost to manufacture a loan,” explained Clem Ziroli, president of First Mortgage Corp. in Ontario, California. “If you have a high credit score, it’s easier. For deserving borrowers with lower scores, the cost for mistakes is prohibitive and is causing lenders to not want to make those loans.”

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News

First-Time Home Buying Lowest Since 1987

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First-time homebuyers make up just 33% percent of the current real estate market, according to a new report released by the National Association of Realtors on Monday.

That number is the lowest point in nearly three decades, since 1987.

“Rising rents and repaying student loan debt makes saving for a down payment more difficult, especially for young adults who’ve experienced limited job prospects and flat wage growth since entering the workforce,” NAR chief economist Lawrence Yun told Mortgage News Daily. “Adding more bumps in the road, is that those finally in a position to buy have had to overcome low inventory levels in their price range, competition from investors, tight credit conditions and high mortgage insurance premiums.”

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News

Housing Not Affordable for Many, Despite Lower Prices

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According to a report by RealtyTrac, the issue of affordability in housing is measured very differently today than it used to be.

“A real estate market that should be flying high is instead a real estate market that is faltering,” explained Brian Mushaney, Executive Vice President, Data Solutions, for RealtyTrac.

Although housing prices and interest rates are down to historic lows, incomes are also down. According to Mortgage News Daily, “It takes $1,430 today to purchase goods and services costing $1,000 in 1999,” leaving a smaller percentage of income available for housing.

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News

Homelessness Steadily Declining in North Dakota

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North Dakota currently leads the nation in the decline of homelessness with a 40 percent drop over the last year, according to the federal government census.

Nationally, the number of homeless individuals is also declining, though at a much smaller rate. The census found 578,000 Americans to be homeless this year, which is down about 2 percent from 2013.

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News

Baby Boomers Likely to Stay Put or Upsize, Not Downsize

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A new survey compiled by The Demand Institute found that Baby Boomers are very happy to continue living right where they are, thank you very much. And if they do move, they’d prefer to upsize rather than downsize.

A previous report by Harvard University’s Joint Center for Housing Studies and the AARP had suggested that boomers would be likely to move into homes with features more accommodating to aging individuals, though this new survey paints an opposite picture.

“This survey simply reflects what people are telling us their plans are,” said Jeremy Burbank, vice president at The Demand Institute. “In some cases, they’re planning ahead and being realistic, and in other cases, they’re not.”

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http://www.washingtonpost.com/news/get-there/wp/2014/10/30/some-aging-baby-boomers-will-upsize-not-downsize-if-they-move-at-all-poll-finds/

News

American Realty’s Accounting Under Review, Report

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According to Bloomberg News, the U.S. Securities and Exchange Commission is set to review the accounting documents of American Realty Capital Properties, Inc.

A “person with knowledge of the matter” revealed the news to Bloomberg on Wednesday.

The source explained that the review was spurred after the company replaced two executives after mistakes were found in ARCP’s financial filings.

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Credit, News

U.S. Consumer Financial Protection Bureau Nabs Loan Companies for Fraud

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Multiple loan companies were found to have engaged in illegal acts surrounding student loans and mortgages, the U.S. Consumer Financial Protection Bureau announced on Tuesday.

According to MSNBC, “The CFPB found that some student loan servicers inflated minimum payments due, made illegal debt collection calls or charged unlawful late fees, even after borrowers had made payments during the grace period.”

The report did not name the companies in question, however.

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News

Home Sales Stalled in September

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Despite lower mortgage rates during the month of September, home sales fell flat.

According to the National Association of Realtors, home sales increased by a measly .3 percent from August.

“Housing supply for existing homes was up in September 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year,” Lawrence Yun, chief economist for the NAR, explained to CNBC. “Additionally, the current spectacularly low mortgage rates should help more buyers reach the market.”

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News

Detroit Bidder Purchases 6,000 Foreclosed Properties

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A mystery bidder in Detroit has purchased 6,000 foreclosed properties in the area for $3.2 million – just about equal to the minimum allowable bid of $500 per property.

According to Bloomberg Businessweek, the properties include approximately 3,000 structures that need to be torn down, 2,000 empty lots, and about 1,000 homes that are thought to have some value.

This year alone, Wayne County has seen approximately 56,000 properties enter foreclosure with about 20,000 of those sent to auction.

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Tips & Advice

Advice for Retirees When Downsizing: Part 5 of 5

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When considering a move to a smaller property, experts suggest looking for a place that comes with a price tag you can afford to pay off without having to take out a new mortgage.

For one, most retirees live off of Social Security, savings accounts and other minimal funds.

Plus, says Thomas Scanlon, an adviser with Raymond James in Manchester, Conn., “If someone is 50 years old, he’d have the mortgage until he’s 80.”

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