What a 0% mortgage rate would mean for housing



U.S. President Donald Trump last week called on the Federal Reserve to drop its key interest rate to zero, or even negative, when it convenes its next meeting later this month. The call has sparked discussion among real estate experts on how zero interest rates would impact the housing market. The obvious impact is that […]

White House proposes to end conservatorship of Fannie and Freddie



U.S. President Donald Trump’s administration last week put forward several proposals aimed at modernizing the Federal Housing Finance Agency and ending the federal government’s decade-long conservatorship of the government-sponsored enterprises. The proposals came following a demand from President Trump that responsible agencies come up with some meaningful reforms to the system, in order to reduce […]

OCC warns banks against asset-depletion loans



The Office of the Comptroller of the Currency is asking banks to maintain strict lending standards for a kind of unconventional mortgage that’s focused on the borrower’s assets. According to the federal regulator, so-called asset-depletion loans are growing fast in the subprime lending market. These loans let borrowers draw upon their assets, instead of their […]

Opendoor launches new mortgage offering



iBuying giant Opendoor announced last week it’s planning to enter the mortgage game. The company says it won’t just restrict its services to making instant cash offers on seller’s homes, but will now issue loans for buyers of its homes as well. The company said the idea is to speed up the time it takes […]

Young consumers are confused about home buying, survey finds



More than half of younger adults in a recent survey say they lack knowledge about homeownership and mortgages, and the findings demonstrate they may need more resources to learn about these things, the survey authors say. LendEDU, a personal finance resource that carried out the survey of consumers aged 23 to 38, said that confusion […]

Gen Z credit market comes of age



Generation Z is finally coming of age, with around 14 million consumers born during or after 1995 taking out credit, including mortgages, according to data from the credit firm TransUnion. In its Q2, 2019 Industry Insights report, TransUnion said that both the newest and the oldest members of “credit-eligible” Gen Z’ers are beginning to enter […]

Advantages and Disadvantages of Paying Off Your Mortgage



Pros and Cons of Paying Off Your Home Mortgage Early When you buy your first home, you soon learn that life is all about making the right financial decisions. Everything is about the pros and cons of things like paying off the mortgage on your home. These are not easy decisions to make. Before you […]

Redesign of standard mortgage application form is delayed



Fannie Mae and Freddie Mac say that proposed changes to the standard mortgage application form may be delayed. The changes to the Uniform Residential Loan Application form were announced three years ago and due to come into effect from February 1, 2020. But the new form could now be delayed, as the Federal Housing Finance […]

HUD rule changes make it harder to obtain a cash-out refinance loan



The Department of Housing and Urban Development last week imposed limitations on cash-out refinances that will make it more difficult for homeowners to cash in on the equity they’ve built up in their homes. The HUD said on Thursday it’s lowering its loan-to-value requirements for cash-out refinances from 85% to 80%. The move means that […]

Consumers get more home buying power as Fed cuts interest rates



The U.S. Federal Reserve this week slashed interest rates for the first time since the Great Recession in 2008, but experts say the move is unlikely to improve what is already a very favorable borrowing environment for home buyers. The federal funds rate, which governs the rate banks charge each other for short-term borrowing, will […]