Emails uncovered in Trident redlining probe show proof of intent
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Modern-day redlining takes many forms and — in the eyes of the Consumer Financial Protection Bureau and the Department of Justice — emails and photos exchanged by mortgage loan officers are seen as proof, along with key lending statistics, of redlining and discrimination at Trident Mortgage, a longtime mortgage lender in Philadelphia owned by Warren Buffett's Berkshire Hathaway. Berkshire agreed to pay $24 million last month to settle charges that Trident avoided making home loans in three metro areas: Philadelphia, Camden, New Jersey, and Wilmington, Delaware. The settlement with Trident is part of a flurry of exams and investigations that CFPB Director Rohit Chopra has launched since January focused on fair lending and redlining by banks and mortgage lenders, lawyers said.?
The 30-year fixed-rate mortgage average declined 9 basis points to 5.13% for the weekly period ending August 18, according to Freddie Mac's Primary Mortgage Market Survey. The drop comes, though, one week after the 30-year rate leaped 23 basis points to 5.22%. One year ago, the 30-year average came in at 2.86%. Average rates for 15-year and adjustable-rate mortgages also inched downward over the past seven days after jumping the prior week. The 15-year fixed-rate dropped to 4.55% from 4.59%, while one year ago, it averaged 2.16%.
The Federal Housing Finance Agency and Ginnie Mae jointly released updated minimum financial-eligibility standards for counterparties that turned out to be less restrictive than mortgage trade groups had feared. The new standards slated to go into effect late next year appear to mark a partial retreat from an earlier Ginnie proposal that would have imposed higher bank-like capital requirements on non-depositories. It also backs off an earlier version of the FHFA standards that contained a controversial origination-liquidity requirement. The FHFA also partially restored an allowance for unused portions of committed agency servicing-advance lines of credit so that 50% can be put toward liquidity requirements when the new standards go into effect.
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At 0.42% in July, the rate was up from 0.38% the previous month and the highest seen since September 2020, when it was 0.46%. That suggests the mortgage market is half done with its transition from extraordinary pandemic relief back to more normal loan performance. In February 2020, just prior to COVID-19's arrival in the United States, the first-mortgage default rate was 0.84%.? The rate at which first-mortgage borrowers go into default generally has been trending upward since October of last year, when it was 0.26%. Redefault rates for borrowers in forbearance also have been rising recently, but generally delinquencies remain historically low . First-mortgage default rates are still far below where they were when they peaked in the wake of the Great Recession's housing crash. The 10-year high for first-mortgage default rates, which was set in December 2012, was 1.68%.
A pair of trade groups dedicated to representing the interests of smaller-to-mid-sized mortgage lenders are merging. The Community Home Lenders Association and the Community Mortgage Lenders of America are combining under a new name: the Community Home Lenders of America. Scott Olson, current executive director of the Community Home Lenders Association will have the same role at the merged organizations, while CMLA's Rob Zimmer and David Horne will continue their government relations work.
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Next Trend Realty LLC./wwwHar.com/Chester-Swanson/agent_cbswan
2 年Sad to hear That, Trident Redlining probe shows proof Of Intent.