Prepayment, foreclosure starts down in February
Prepayment speeds have fallen 40 per cent so far in 2017 and were down 15 per cent last month, the lowest monthly rate in three years.
A first look at data from Black Knight Financial’s loan database for February also reveals that foreclosure starts were down 18 per cent month-over-month and were 31 per cent down from a year earlier. Active foreclosure inventory is 470,000, the lowest since 2007.
The top 5 states by non-current percentage were Mississippi, Louisiana, Alabama, West Virginia and New Jersey. The bottom 5 were Idaho, Montana, Minnesota, Colorado and North Dakota.
Non-bank lender announces low down payment loans
Non-bank mortgage lender Security America Inc. has launched a zero per cent down payment for US military personal and veterans; and a 1 per cent rate for other qualifying homebuyers.
The military program also does not require eligible borrowers to pay for personal mortgage insurance and sellers will pay for all closing costs.
The lender’s other mortgage program requires a 1 per cent down payment and to be eligible the prospective home owner must be below the median income of the specific country of residence. Debt to income ratio must be below 45 per cent with a minimum credit score of 680.
The 1 per cent rate is for an FHA with Security America providing 2 per cent as a grant, to satisfy requirements for a minimum 3 per cent down payment.
Home sales slip in New York State but near record
New York State home sales were down 6.7 per cent in February compared to a year earlier as months of supply fell 23.9 per cent to 5.4 months.
The 7,391 closed sales represented the second highest for the month; a year earlier there were 7,925 closings. Pending sales were up 3 per cent year-over-year to 9,410.
Median sales prices were up 4.3 per cent, New York State Association of Realtors reported, at $242,000.
“It’s been a very strong start to 2017, reminiscent of the first months of 2016’s record-setting run,” said Duncan R. MacKenzie, CEO of the New York State Association of Realtors. “With one eye on rising mortgage rates and the other on a declining selection of homes, it appears that buyers are jumping at the opportunity to make an offer when they find the right property.”