FRIDAY FACTS March 28, 2014 – Lending Woes

FRIDAY FACTS

March 28, 2014

LENDING WOES 

  • Mortgage origination is at its lowest point since 2008, down 60% nationwide.  We know that the same is true on Cape with mortgage activity year to year down 54.2%. Why?  The re-fi’s have re-fied, inventory is down, the rates are 1% higher, lending standards are restrictive and the weather has been abysmal. 
  • Currently, the average denied credit score is 722 for purchase loans.  The average approved score for purchase loans is 755.
  • Nationwide, 13.3% of U.S. homes are underwater.  Massachusetts is doing much better with 10.9% of homes underwater.  Massachusetts ranks 26th in the U.S.
  • A study by the Urban Center finds that because of Dodd/Frank, there were 1.22 million fewer purchases in 2012 than if 2001 credit availability standards were applied, and that the hardest hit were minorities. Pre-bust, caucasian homebuyers were at 68%, post-bust at 71%.  Asian homebuyers were 4% pre-bust and 6% post-bust.  African-American homebuyers were at 8% pre-bust but fell to 5% post-bust, and Hispanic homebuyers were at 13% pre-bust and fell to 9% post-bust.
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