“As we continue our work, consumer financial markets are showing increasing signs of health,” Consumer Financial Protection Bureau Director Richard Cordray wrote in his report to the House Committee. “For example, the latest Home Mortgage Disclosure Act (HMDA) data, released by federal agencies last week, shows increasing numbers of consumers are taking out mortgages.”
According to Cordray, 2014 – the first year of the CFPB’s mortgage rule changes – originations for home purchases increased between 4-5%.
“The upward trend appears to have accelerated over the first half of this year,” Cordray wrote. “And while we saw some continuing consolidation in parts of the mortgage market, there is no evidence of the decline some predicted.”
Overall consumer sentiment, meanwhile, has contributed to a loosening in lending standards, which will mean more clients will have the ability to enter the market. That will surely be music in the ears for originators.
“As consumers gain more confidence, lenders are responding and credit standards are becoming less tight across all these markets,” Cordray wrote. “Consumers appear to be carrying their debt burdens more effectively, which has contributed to the fact that the delinquency rate in each of these markets is at or near record lows. These are all positive trends for the consumer financial marketplace.”
The signs are there, states a report submitted to the House Committee on Financial Services on the health of the economy, as optimism grows among Americans who are now buying homes in greater numbers.