Housing Wire

OCTOBER 10, 2024

In November 2023, Wells Fargo sued LoanSnap for $431,511 in a district court in Minnesota, alleging breach of contract in selling a mortgage that did not meet contractual requirements, such as excessive and unsupported debt-to-income ratios. The total judgment in these cases is more than $1.1

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Debt-to-income ratio Mortgages Loan Officer Banks 418

Housing Wire

MAY 8, 2023

Louis, Missouri-Illinois Program borrowers also need to meet the lender’s eligibility requirements, which typically include a minimum credit score of 620 and a maximum debt-to-income ratio of 50%. For those who make between 50.01% and 80% of AMI, there is up to $1,250 worth of assistance available.

Debt-to-income ratio 435

Debt-to-income ratio Closing costs Finance Lending 435

Housing Wire

MARCH 16, 2022

We are going to see an increase in some of the non-QM lending. The Consumer Financial Protection Bureau ‘s new General QM Final Rule replaced the 43% debt-to-income ratio limit in favor of more flexible pricing guidelines, allowed jumbo loans to get QM status and provided additional ways to verify income or assets.

Banks 397

Banks Loans Debt-to-income ratio Lending 397

Housing Wire

JANUARY 14, 2022

Non-QM lenders Angel Oak Mortgage , Acra Lending and Newfi alone currently have at least 130 openings on jobs listings sites. Acra Lending, which rebranded from Citadel Servicing last year , more than doubled its headcount year-over-year from 200 employees to 420 in 2022. The new rule is slated to be implemented on Oct.

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Debt-to-income ratio Lending Loans Loan Officer 434

Housing Wire

MAY 21, 2021

The Urban Institute regularly cites statistics showing IMBs do a better job than banks of serving underserved borrowers, as measured by metrics such as FICO scores and debt to income ratios. CRA is designed to prevent banks from diverting funds OUT of a community where they take deposits in order to lend in other communities.

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Debt-to-income ratio Banks Lending Loans 456

Housing Wire

SEPTEMBER 17, 2024

“There’s been an explosion in high-DTI lending since I left FHFA,” he said, pointing to the fact that some Federal Housing Administration (FHA) borrowers have a 57% debt-to-income ratio. Taylor Stork , the president of CHLA and the chief operating officer of Developer’s Mortgage Co.

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Debt-to-income ratio Loans Lending Finance 434

Housing Wire

MARCH 30, 2021

Borrowers don’t always know or understand how their credit or debt-to-income ratio (DTI) impacts the type of loan they can qualify for. Borrower experience is crucial for lending success, and it’s something not every bank focuses on. This is where lenders can step in to provide their clients with a better understanding.

Pre-qualification 468

Pre-qualification Debt-to-income ratio Pre-approval Loan Officer 468

Housing Wire

AUGUST 5, 2022

Numerous organizations criticized the agencies for not proposing to grade banks based on data about their minority lending. Above all, we are extremely disappointed to see the lack of the explicit consideration of lending by race in a lender’s CRA rating,” wrote the St. Louis Equal Housing and Community Reinvestment Alliance.

Banks 448

Banks Debt-to-income ratio Lending Loans 448

Housing Wire

FEBRUARY 5, 2024

of the median household income, the average payment is down from a 38-year high of more than 38% in October. But that number is still 9 percentage points above the 30-year average debt-to-income ratio of 24.2% and slightly less than the 33.8% peak prior to the housing market downturn in 2006. “If

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Debt-to-income ratio Marketing Equity Loans 482

Housing Wire

AUGUST 8, 2024

That gets rolled into their debt-to-income ratio, which means they look like a riskier buyer, which means their mortgage loan gets priced higher, which means they have an additional disadvantage because the cost of lending goes up for them. So, this is a further challenge for them to even enter the housing market.”

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Debt-to-income ratio Marketing Mortgages Days on market 488

Housing Wire

MARCH 4, 2021

The CFPB just issued its final rulings on QM in December , which established a pricing threshold that effectively replaced the debt-to-income limit of 43% with a price-based approach that gives lenders relief for loans capped at 150 basis points above the prime rate. Amending the QM Rule has been a long process.

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Debt-to-income ratio Loans Lending Mortgages 338

Housing Wire

APRIL 26, 2023

“Together, those changes significantly rebalanced the LLPA framework toward mission-focused lending,” Bob Broeksmit , president and CEO of the trade organization, said in February. No change is more controversial than the LLPA tied to a borrower’s debt-to-income ratio.

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Debt-to-income ratio Loans Mortgages Lending 397

Housing Wire

JUNE 29, 2022

The report found that while the majority (75%) feel confident about eventually securing a mortgage, a large percentage of millennial and Gen Z future homebuyers see an insufficient down payment or closing funds (46%), their high debt-to-income ratio (45%) and bad or no credit (38%) as barriers to approval.

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Debt-to-income ratio Loan Officer Loans Mortgages 459

Housing Wire

MARCH 30, 2021

The Ability to Repay/QM rule was enacted by the CFPB after the financial crisis and requires lenders to verify a borrower’s ability to repay the mortgage before lending them money. In addition, the Bureau has not properly considered the costs to covered persons that the delay will create – mainly from the uncertainty that will result.”.

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Debt-to-income ratio Loans Mortgages Lending 476

Housing Wire

MAY 25, 2022

There is also the matter of efficiency versus increased lending cost. With so many different types of borrowers beginning to look towards non-QM for their lending needs, LOs and brokers are wise to incorporate a diverse set of loan options. With non-QM in a current transition state, forecasting future demand levels can be tricky.

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Debt-to-income ratio Lending Pre-qualification Loans 418

Keeping Current Matters

AUGUST 20, 2020

Accompanied by more rigorous lending standards, the household debt-to-income ratio is at a four-decade low and household equity near a three-decade high. Kushi also addresses this question: “There are two main reasons why this crisis is unlikely to produce a wave of foreclosures similar to the 2008 recession.

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Debt-to-income ratio Lending Equity Mortgages 304

Housing Wire

MAY 4, 2022

Tighter mortgage underwriting : Lending standards are much tighter today than during the mid-2000s. The mortgage debt-to-income ratio is near a four-decade low and homeowner equity is at a historic high. But today’s housing market differs from 2008 in several important ways.

Debt-to-income ratio 397

Debt-to-income ratio Equity Pre-approval Finance 397

Housing Wire

MAY 3, 2023

Impact on housing and residential lending It’s unclear what the Fed’s next decision will be, but the MBA is hoping for a rate hike pause. “If Additionally, higher rates create higher debt-to-income ratio calculation, resulting in qualifying for lower mortgage amounts,” Mendenhall said.

Mortgages 448

Mortgages Debt-to-income ratio Banks Fixed-rate mortgage 448

Housing Wire

NOVEMBER 7, 2023

Media stories about home affordability rarely cover how the GSEs allow for low down payments and higher debt-to-income ratios. And when lenders — not headlines — explain cash-to-close and monthly all-in costs relative to incomes, the lights go on for borrowers.

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Debt-to-income ratio Mortgages VA loan Loans 435

Housing Wire

JUNE 9, 2023

Unlike banks, they don’t do auto loans, credit cards, student loans, business lending, lines of credit and more. Banks don’t need to expand their mortgage lending businesses. Or look at this data on DTI (debt to income ratio). The fact that banks are only 7% of all Ginnie Mae lending is not by accident.

Banks 370

Banks Debt-to-income ratio Lending Loans 370

Housing Wire

OCTOBER 21, 2020

The current rule provides safe harbor protection to lenders from potential litigation brought by borrowers for loans having debt-to-income ratios of 43% or less. The Consumer Financial Protection Bureau appears to have lost an opportunity to correct a nagging issue in its definition of a qualified mortgage.

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Debt-to-income ratio Loans Mortgages Lending 418

Housing Wire

MAY 14, 2021

You’re better off using that credit card for a small payment at the grocery store, and then paying it off at the end of the month,” said Citi Area Lending Manager Marc Souza. Lenders will also look at your income, employment history and capacity to take on the new payment. Improve your DTI Ratio.

Debt-to-income ratio 459

Debt-to-income ratio Loans Mortgages Lending 459

Housing Wire

AUGUST 7, 2023

The financial incentives are simply not there for mortgage companies that want to do more minority lending; therefore, it shouldn’t be a surprise that most banks and mortgage lenders do just enough minority lending to stay out of regulatory trouble but secretly have no desire to do much beyond that.

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Closing Fixed-rate mortgage Debt-to-income ratio Lending 370

Housing Wire

DECEMBER 15, 2022

Spread across a multitrillion dollar mortgage-lending industry, the volume of repurchase requests stemming from alleged reps and warranties violations so far may not seem like a huge number. So-called reps and warranties representations are legally binding claims a lender makes in a loan-sale agreement with the agencies.

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Loans Debt-to-income ratio Purchase and sale agreement Mortgages 370

Housing Wire

NOVEMBER 10, 2020

So when that happens, you don’t originate, you don’t lend at par for something at 88. But unlike Fannie and Freddie, most non-QM loans rely on the borrower’s credit score and the loan-to-value ratio on the loan, rather than the debt-to-income ratio. So you stop.”. Everyone bowed out.

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Debt-to-income ratio Loans Banks Loan Officer 459

Housing Wire

AUGUST 27, 2021

I also was quoted in the article stating, “This is a relatively new world of automated underwriting engines that by intent may not discriminate but by effect likely do.” This rule remains in effect today.

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Debt-to-income ratio Purchase and sale agreement Pre-approval Loans 448

Inman

MAY 10, 2023

Lending industry groups like the Mortgage Bankers Association called a fee based on borrower's debt-to-income ratio "unworkable."

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Debt-to-income ratio Lending Mortgages Industrial 158

Housing Wire

APRIL 4, 2022

As interest rates rise, so do the monthly mortgage payments, which could be problematic for low-to-moderate income borrowers, said Alex Naumovych, loan officer at Draper & Kramer Mortgage. Interest rates typically impact FHA borrowers more directly because these borrowers likely have a maximum debt-to-income ratio,” said Naumovych.

FHA loan 370

FHA loan Debt-to-income ratio Pre-approval Loan Officer 370

Housing Wire

MARCH 10, 2023

Through the market turmoil and volatility that marked much of 2022 — and is still with us today — home-equity lending expanded, however. ATTOM , a real estate data provider, reports, however, that the “severe contraction across the lending industry in the fourth quarter of 2022 even hit HELOCs” in terms of origination volume.

Equity 370

Equity Marketing Debt-to-income ratio Lending 370

Housing Wire

NOVEMBER 8, 2021

From a lending perspective they are the easiest loan to work with,” Naumovych explained. They have 100% financing, no mortgage insurance and there is no longer a loan limit and I am often able to give customers better interest rates even if they do not have a great credit score or their debt to income ratio is high.

VA loan 418

VA loan Agents Pre-approval Debt-to-income ratio 418

Housing Wire

AUGUST 23, 2023

So, a human underwriter might extract from looking at someone’s paystub, what their income is, and then type that into Empower Pro or Encompass, and then use that along with other things to calculate the consumer debt-to-income ratio or other things.

Debt-to-income ratio 370

Debt-to-income ratio Technology Mortgages Pre-approval 370

Housing Wire

JANUARY 4, 2022

That was the start for the nonbank lender, which dominates the nation’s wholesale mortgage lending sector with an estimated 33.5% Still, even in those transactions, the underlying collateral appears solid, with the average credit scores of the borrowers above 760 and the average debt-to-income ratio ranging from 64.4%

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Marketing Debt-to-income ratio Loans Mortgages 397

Housing Wire

JANUARY 21, 2022

And so that’s where non-QM lending comes into play.”. Over time, these energy efficiencies save the homeowner money, and it basically lowers the borrower’s debt-to-income ratio,” McDonough explained. Basically, it allows them to qualify for more mortgage because their housing expenses in the long-term are reduced.”.

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Marketing Debt-to-income ratio Loans Investor 418

Housing Wire

DECEMBER 4, 2024

Certain borrower groups are especially vulnerable, including those with lower credit scores , higher debt-to-income ratios and those who opted for more affordable loan products. At the IMN servicing conference in New York last month, Goldstone said there are now “COVID default loans.”

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VA loan Mortgages Debt-to-income ratio FHA loan 305

Housing Wire

AUGUST 26, 2024

Middleman pointed to average loan-to-value ratios of 50%, average debt-to-income ratios in the low 40% range, and credit scores in the low 700s as indicators of an “extraordinary” credit. And we really think we’re gonna have these customers with us for a really long time. That’s our goal.”

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Mortgages Banks Debt-to-income ratio Loans 459

Realty Biz

APRIL 5, 2022

Lending guidelines on FHA and VA loans are almost identical. Lender Overlays which are lending requirements that is above and beyond the minimum agency guidelines. However, lenders can have higher lending standards that is above and beyond the minimum agency guidelines called lender overlays. Trustee approval is required.

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Bankruptcy Debt-to-income ratio VA loan FHA loan 120

Marco Santarelli

FEBRUARY 7, 2025

While market adjustments are always possible, the key differences in supply and demand, lending practices, and overall market psychology make a repeat scenario highly unlikely. Lending Standards: A Post-Crisis Reformation 2008: Lax lending standards were a major culprit. Thankfully, the answer is a resounding no.

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Pre-approval Marketing Debt-to-income ratio Lending 87