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More homebuyers seek government-backed loans as an affordability lifeline

Housing Wire

I think the same could be said for most in my industry, she added. Affordability is a real challenge right now, and with the fact that FHA and VA loans require a lower down payment, and allow for the debt-to-income ratio to go higher than conventional, these types of loans are the bulk of what we are seeing in the market right now.

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Cause for concern? FHA, VA delinquencies are rising quickly

Housing Wire

Although mortgage delinquencies rose only ten basis points in the fourth quarter of 2024 compared to one year ago, the composition of the delinquencies changed, Marina Walsh , the MBAs vice president of industry analysis, said a statement. The rate for FHA loans increased by 57 bps to 11.03%, and the rate for VA loans rose by 12 bps to 4.70%.

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Mortgage industry provides commentary on CFPB’s proposed changes to QM loan definition

Housing Wire

Prior to the deadline for public commentary on Tuesday, housing industry trade groups, companies and organizations responded to the Consumer Financial Protection Bureau’s proposed rulemaking for the general qualified mortgage definition and the expiration of the QM patch in January 2021. Under § 1026.43(c)(2)(vii), Section 1026.43(c)

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Homebuyers are taking more risks in an obstacle-filled market

Housing Wire

We write so many mortgages at maximum debt-to-income ratios, then taxes and insurance go up, and people struggle to afford their home very quickly, said Matt Hefner, an LO with Fairway Independent Mortgage Corp. Meanwhile, climate-related risks are also impacting home values.

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How will first-time buyers fare if sellers can’t offer buyer agent compensation?

Housing Wire

As real estate practitioners adjust to the practice changes that took effect in August, and the industry waits for final approval of the NAR settlement from the court in November, questions continue about seller offers of compensation. These are the questions that advocates who want to upend the real estate industry further cannot answer.

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Mortgage quality control report reveals sharp rise in insurance defects

Housing Wire

Loan applicants also struggled as rising premiums made it difficult for them to qualify for mortgages due to higher debt-to-income ratios. In Q3 2024, however, weather-related natural disasters caused providers to raise insurance premiums.

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The mortgage industry is nervous about LLPA fee changes

Housing Wire

Debt-to-income ratio is also now a consideration on the pricing matrix, with a new pricing adjustment for borrowers with a DTI ratio above 40%. The changes are effective starting May 1, 2023.