Consumer credit resilient even as debt, delinquencies rise

Credit scores, particularly among borrowers in the mortgage market, have held up relatively well as inflation has risen, though some other indicators point to potential strain. VantageScore's measure, which isn't commonly used for mortgages right now but could be in the future , showed on average consumers' credit standing was stable on a consecutive-month basis at 696 in December. At the same time, consumer debt levels have been rising, and signs of strain on payments are emerging, according to VantageScore's monthly CreditGauge report. For mortgages, the average balance in December was $251,800, compared to $236,900 a year earlier and $250,500 in November. A rise in non-mortgage debt levels has implications for home loans.?

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Fairway investing in its reverse mortgage lending business

Fairway Independent Mortgage is investing what it termed "unprecedented resources" in its reverse mortgage business at a time when massive dislocation is taking place in the sector. The company finished 2022 as the nation's seventh largest originator of Federal Housing Administration Home Equity Conversion Mortgages, with 2,747 endorsements, according to Reverse Market Insight. That was up from 1,688 in 2021. As part of the change, Fairway is decentralizing its operations for reverse mortgages, moving away from the "strongly centralized" model it had been using. Another step is the creation of a Reverse Advisory Council, which is composed of the top leadership from Fairway's sales, operations and support teams.

American Pacific Mortgage eyes further expansion

California-based American Pacific Mortgage continues to expand its market footprint, announcing Thursday an asset purchase of Lend Smart Mortgage, LLC. Minnesota-based Lend Smart Mortgage has close to 30 branches nationwide, with its presence mainly stretching across the midwest. The terms of the asset purchase were not disclosed. According to APM's spokeswoman, 27 branches will be brought on board, with 107 loan officers in total.? APM is integrating Lend Smart by way of a "divisional model" where the Minnesota-based lender gets to retain its name, leadership and brand, accessing mortgage products and technology offered by APM.

Latest USAA employee reduction impacts mortgage unit

USAA eliminated an unspecified number of jobs in late January, with some of the employees impacted working in the company's mortgage department. A spokesman for the Texas-based company confirmed that a reduction round took place, but wouldn't provide further details. This is at least the second reduction round at USAA. In August, job cuts took place at its depository subsidiary USAA Federal Savings Bank. The company's information technology, client advising and human resources divisions were affected by the reductions.

Amerisave defamed laid off employees, suit claims

Laid off employees of AmeriSave Mortgage Corp. are slamming the lender in a class action lawsuit, claiming the firm disparaged workers following a mass termination and that it owes them a combined millions of dollars. The complaint, including accusations of fraud and negligence, was elevated this week by attorneys for Amerisave from a California state court to the U.S. District Court for the Eastern District of California. Eleven plaintiffs suggest a class as large as 140 impacted workers are entitled to damages exceeding $43 million.? "Plaintiffs also contend that AmeriSave falsely told third-party industry professionals, recruiters (and) hiring managers that putative class members had been terminated because putative class members had 'not gotten the job done' or did 'not meet performance goals,'" wrote attorney David Syme of Syme Law Firm in the original complaint filed in November.

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