Banks pull back from mortgage market
The big banks are reducing their stake in the US mortgage market according to a CNBC report. It highlights recent earnings reports showing that mortgage originations, profits from loans, or both, are making the mortgage market less profitable for the big banks. Meanwhile, nonbank lenders are increasing their share of the market. The article reports a quarter-over-quarter drop of 21 per cent in mortgage profit and 25 per cent drop in originations for JP Morgan Chase; Citigroup’s originations were down 17 per cent; and a 14 per cent drop for Wells Fargo, the only one of the three to report a year-over-year increase.
Lender reports increasing delinquencies in former boom towns
The mortgage market in some of America’s former oil boom towns is starting to show some cracks. That’s according to a new report from Barclays which reveals increasing delinquencies in some previously hot markets. Delinquencies in low-leverage mortgages in areas known for drilling activity increased in the second quarter of 2015 to 2.5 basis points; from zero in the same quarter of 2013. In non-oil areas delinquencies were up to 1 basis point. For higher-leverage loans the delinquency rate was 5.3 basis points in oil-areas and 2.3 per cent elsewhere.
Former Judy Garland home lists
A co-op home formerly owned by Judy Garland has been put on the market in Manhattan. The 4,700 square foot home at 1. W. 72nd – which, for the record, is not paved with yellow brick – has been listed at $16.75 million. The home has 3 bedrooms and 3 bathrooms and 7 fireplaces and includes Yoko Ono among the neighbors.
Remodeling spend trending up
Homeowners are spending more on their existing homes according to new figures from the National Association of Home Builders. In a press conference at the International Builders’ Show in Las Vegas, NAHB forecast that spending on remodeling would increase 1.1 per cent in 2016 compared to last year and would rise by 1.9 per cent in 2017. The association’s Paul Emrath said that rising house prices would enable owners to dip into equity to fund projects but Jeff Grantham, a remodeler from Michigan said that the local remodeling market was not reaching its full potential due to restrictions on access to credit especially for second homes.