Consumer Loan Delinquencies Fall Across the Board, ABA SaysNews from BusinessWeek:
U.S. consumer-loan delinquencies fell across the board in the fourth quarter as borrowers benefited from improving job and housing markets, the American Bankers Association said.
Total delinquencies in the 11 loan categories surveyed by the Washington-based trade group fell to 2.49 percent of all accounts, from 2.59 percent in the preceding quarter, the ABA said today in its Consumer Credit Delinquency Bulletin. The report covering a three-month period through Dec. 31 marked the first time in eight years all 11 loan categories fell in the same quarter.
“You can’t get a [...] Continue Reading…
Retirement Hopes Dwindle, But Home Equity RemainsNews from Reverse Mortgage Daily:
As baby boomers begin to retire, an unfortunate fact has emerged: most have not saved adequately for their post-working years.
More than 65% of Americans report they are moderately or very worried they have not saved enough for retirement, according to a 2011 Gallup poll concluding that lack of retirement funds is America’s biggest financial concern.
The lack of savings coupled with an economic shift away from traditional retirement nest eggs such as pensions and employer-sponsored savings programs is leading today’s 65-plus population to a devastating truth: they don’t have a [...] Continue Reading…
Housing equity data points to subdued marketNews from BBC News:2 April 2012 Last updated at 05:28 ET
The figures are among a number of indicators of a slow UK housing market
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The continued lack of activity in the housing market has been reflected in the latest injection of equity into UK homes.
Housing equity withdrawal remained negative in the final three months of 2011, the Bank of England said.
The £8.5bn injection of equity reflected low levels of [...] Continue Reading…
Foreclosure settlement about to take another swipe at homeowner equityNews from OregonLive.com:By Dan LaschoberI share the pain my fellow homeowners are suffering over lost equity, and I know many are struggling to pay their monthly mortgages. Others have already moved on and their foreclosed homes stand empty all around us. Unfortunately, the pain level is about to increase, only now it will be for homeowners who do not meet the requirements for “consumer relief” under the recent national settlement between the 49 state attorneys general, the federal government and five of the largest mortgage servicers over alleged violations of [...] Continue Reading…
Record number of homes loans ‘under water’News from Sydney Morning Herald:
AAP
Banks are desperate to keep lending despite a record number of Australians being “under water” on their mortgages and the Reserve Bank of Australia’s (RBA) warning against chasing unrealistic profits.
More borrowers than ever before are battling negative equity on their mortgages as falling property values, higher debt levels and rising living costs combine to push home equity levels lower.
That’s the verdict resulting from annual analysis of the local mortgage industry by JPMorgan and consultants Fujitsu, which calls the end of the generational shift to higher debt tolerance levels that [...] Continue Reading…
Bales, wife fell into refinancing trap that crippled U.S. housing industry …News from The Republic:
Pregnant with her first child, and with her husband in Iraq, Karilyn Bales took advantage of what seemed like a sure thing — tapping into their home equity to help stabilize the family’s finances.
But Bales and her husband, Robert, fell into the same refinancing trap in 2006 that dragged the U.S. economy into recession and left millions of Americans facing foreclosure.
The arc of the couple’s finances can be traced, in part, through public records. Karilyn Bales has declined to be interviewed for this story since [...] Continue Reading…
Do I Swap Mortgage for Home Equity Loan?News from Fox Business:
Dear Dr. Don,I have been contacted by my bank to obtain a home equity loan to pay off my mortgage. The term of the home equity loan would be the same as my current mortgage (five years) but would allow me to take advantage of a lower interest rate without the additional cost of refinancing my mortgage. Is this a good deal, and am I losing any type of protection provided by a mortgage but not by a home equity loan?
Thanks,– Jim Juncture
Dear Jim,The consumer protections can be weaker [...] Continue Reading…
Student Debt, the New Home Equity LoanNews from BusinessWeek:
Consumer credit is on a tear. In January (the latest data available), consumers borrowed $ 17.8 billion, bringing outstanding consumer debt to $ 2.51 trillion. That’s the biggest three-month gain in more than a decade. More borrowing could be a good sign, showing that consumers are more confident–that magical emotion that can spur spending and help the economy rebound. But Dan Alpert, managing partner at Westwood Capital, a boutique investment bank, says don’t start welcoming in the “confidence fairy” yet. As he reads the numbers, there’s something more troubling [...] Continue Reading…
Distressed sales down in FebruaryNews from Fresno Business Journal:
Details
Published on 03/26/2012 – 1:10 pm
Written by Business Journal staff
Distressed sales down from last yearDistressed sales in California fell to 48.9 percent of overall home sales during February, while equity sales were on the rise.
Distressed sales, which include short sales and sales of foreclosed or other bank-owned properties, were down from 50.1 percent of total home sales in January, according to the California Association of Realtors. The share was 55.2 percent of sales in February 2011.
Bank-owned sales made up 25.2 percent of the total, compared to 31.9 percent a year [...] Continue Reading…
Genworth Targets Retail Reverse Mortgage Growth, Hires Six New ManagersNews from Reverse Mortgage Daily:
Genworth Financial Home Equity Access today announced it has hired six new retail sales managers in an effort to drive growth of its retail reverse mortgage channel.
“Our Sales Managers will play a critical role in driving the successful growth of our retail channel. These individuals bring extensive HECM product experience and outstanding leadership skills to GFHEA’s team,” said Tim Frederick, retail sales leader.
The company has hired Adrian Prieto, Peter Klamkin, Melanie Parks, Barbara Sica, Luigi Cingolani and George Vrban who will all serve in regional sales.
Prieto, [...] Continue Reading…