Salient to Investors: The Consumer Financial Protection Bureau reports the share of Americans 65 and older with mortgage debt rose to 30% in 2011 with a median debt adjusted for inflation of $79,000, from 22% in 2001 with a median debt of $43,400. The increase in mortgage debt makes these households more susceptible
READ MORE... →Salient to Investors: TransUnion said as much as 20% of home equity lines of credit are at increased risk of default as they switch from interest-only to include principal, causing monthly payments to rise more than 50%. Ezra Becker at TransUnion said more than half of the outstanding HELOCs have
READ MORE... →Salient to Investors: A growing number of companies are offering financing to consumers with irregular incomes, damaged credit or past foreclosures as the housing market recovers and rising interest rates drive down demand for refinancing. Keith Gumbinger at HSH.com said at least a few lenders are starting to dig into the nooks and
READ MORE... →Salient to Investors: The wealth effect from rising house prices may no longer be as effective in spurring the US economy as homeowners increasingly pay down mortgage principal and shorten maturities. Freddie Mac said cash-in refinancings outnumbered cash-outs by more than 2-to-1 in Q4 2012. Amir Sufi at the University of Chicago said the
READ MORE... →Salient to Investors: Moody’s forecast home equity lines of credit will rise 30 percent in 2012 to the highest level since the start of the financial crisis in 2008, and rise another 31 percent in 2013. Mustafa Akcay at Moody’s Analytics said lending will keep rising if house prices continue to rise. The Mortgage Bankers Association forecast
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