Posts Tagged Business
Tranunion has reported that U.S. consumers are a lower credit risk today tha two years ago. The Credit Risk Index (CRI) is now 3.13 percent lower than in 2009. Credit usage also dropped 5.4 percent as consumers relied on current credit limits or switched to using cash and debit cards.
In today’s NASDAQ News some analysts are saying that the increase in mortgage interest rates over the past few weeks will hinder the housing recovery as it will make it less lucrative for people to buy.
For what it’s worth, I don’t agree.
I feel the decision to buy a new home is more often than not an emotional one, not a financial one. People buy a new home because they want it, not because they can get a lower interest rate.
What will happen is that people will qualify for slightly less home since interest rates are directly related to mortgage payment which is directly related to debt-to-income ratios.
What higher interest rates will do is slow the number of mortgage refinances.
Hopefully, we’re near or at rock-bottom in the housing market. Foreclosures are down and interest rates are returning to a “healthy” level where it has been during the most abundant times in our economic history.
Some Mortgage Servicers Are Worse Than Others
The ongoing investigation into mortgage servicers has shown that some of the country’s largest mortgage servicers are worse than others in how they handle home loans.
Loan servicers don’t actually hold the loan, but collect the payments from borrowers and handle the foreclosure process for investors. Servicing rights are highly sought after for where making a loan is a one time source of income, being paid a percentage of every mortgage payment to service and process those payments is an ongoing and very profitable revenue stream.
Bank of America to Lift Foreclosure Freeze in 23 States
Bank of America has announced that it will resume foreclosure proceedings on 102,000 some-odd home in 23 states this coming Monday. However government investigators are still moving forward with their investigations into BofA and others to determine if some people were inappropriately foreclosed on.
And in older, yet related news:
Bank of America seizes home, turns-off utilities and takes the parrot of borrower who wasn’t behind on payments
A 47-year old Pennsylvania woman came home to find Bank of America had seized her home, shut-off her utilities and took her pet parrot. The kicker… She was current on her mortgage. Bank of America’s records were wrong. Shed’s some light on why they are being investigated for improper foreclosures, huh?