Tag Archives: Mortgage Applications

Mortgage applications jumped by 18 percent from the week earlier, riding a refinance wave to numbers not seen since 2009, according to the Mortgage Bankers Association. The trade group found that the Refinance Index climbed up by over 19 percent from the week before, reaching the highest level for an index since April 2009.

According to the data, Massachusetts, Connecticut, and Rhode Island have all seen strong mortgage activity so far in 2012, with Massachusetts showing the strongest numbers. Activity in the state is up more than 28 percent, rising to 99,097 in the first four months of the year-an increase from 76,930 during the same period in 2011. Purchase mortgages increased almost 13 percent year-over-year to 13,376, while non-purchase (refinance) mortgages slid up 32 percent to 85,721.

JPMorgan Chase, which surpassed Bank of America as the largest bank in terms of assets in October 2011, reported a net income $5.4 billion, with earnings per share at $1.31. The reported net income and earnings per share for the 2011 first quarter was $5.6 billion and $1.28, respectively. The bank saw a significant boost with mortgage production-related revenue, which was reported at $1.6 billion, an increase of $722 million, or 80 percent, from the year before. At $59.9 billion, mortgage loan application volumes increased 33 percent compared to the prior year, and 14 percent from the previous quarter, mostly due to heavy refinancing activity.

A lawsuit was filed against GFI Mortgage Bankers alleging it charged African American and Hispanic borrowers higher interest rates and fees on mortgage loans because of their race rather than their creditworthiness, the Justice Department announced Tuesday. At a time when so many American homeowners - of all races - are struggling to make their mortgage payments, the U.S. attorney for the Southern District of New York says it is unacceptable that GFI's practices resulted in higher fees and rates for minority customers.

Builder confidence was flat in March, matching a downwardly revised February index of 28, the first time in six months the index has not increased, the National Association of Home Builders reported Monday. The builder assessment of present home sales conditions actually dipped in March, falling to 29, the first decline since last September. The outlook for home sales in the next six months rose to 36 - the highest level since June 2007 - from 34 in February. Buyer traffic was flat in March at 22.

Consumer credit data suggests spending will increase and the housing market will begin to emerge from its slump this year, according to Equifax and Moody's Analytics. Both companies note that as key market data align with pre-recession totals, consumers should anticipate steady economic growth for major credit sectors, including auto, bank card, and consumer finance. While the mortgage lending sector continues to see the highest percentage of delinquencies, it too is showing signs of increased traction in the coming months.

Bank of America will pay $1 billion to the U.S. to settle on the largest False Claims Act relating to mortgage fraud. Since 2009, the U.S. attorney's office has been investigating lending practices from Countrywide, which BofA acquired in 2008. The results of the investigation led to allegations that the bank created loans insured by the Federal Housing Authority (FHA) to unqualified home buyers. BofA was also accused of originating loans based on inflated appraisals and failing to identify homeowners who could participate in the government's Home Affordable Modification Program.

Wells Fargo & Company ended the year with record earnings in the fourth quarter, reporting a net income of $4.1 billion, up from $3.4 billion in the third quarter. The San Francisco-based bank reported year-end profits of $15.9 billion, demonstrating a 28 percent increase from yearly earnings in 2010. Wells Fargo holds a residential mortgage servicing portfolio totaling $1.8 trillion in value. As of year-end, the balance of loans 90-plus days delinquent stood at $22.4 billion.

The Federal Reserve has published a new rendition of its market-gauging Beige Book, which indicates economic activity across the country is expanding at only a modest pace. Residential real estate markets were described as ""weak"" overall, however, a few districts did report slight improvements. Markets in the New York district are seeing an increasing share of foreign buyers paying cash. Florida contacts report a rise in sales activity but a decline in bank-owned homes.

Last year, banks seized more than one million properties. Lax underwriting standards during the boom years served as the catalyst for a housing bust that upended not only the mortgage market but the entire U.S. financial system, and has left scores of foreclosures, delinquencies, and vacant homes in its wake. In order to see what changes the lending community has made, the ratings agency DBRS decided to do a side-by-side comparison of the criteria for obtaining a prime mortgage in 2007 versus today's requirements for prime qualification.