At the beginning of July, Capital One was the 12th largest mortgage lender among banks. Fast forward 4 months and as of Tuesday they will no longer originate mortgages and home equity loans. The President of financial services at Capital One used words like “structurally disadvantaged” and “challenging rate environment” when describing their departure from mortgage lending. Read the article here. To me it’s always interesting when larger players exit the market as I feel it’s
It looks like Millennials aren’t just technology zombie’s scrolling through their Instagram and Snapchat timelines. Ellie Mae’s data for September showed that conventional refinances increased from 15% in August to 17% for Millennials. We also saw FHA refi’s increase 1% and an 8% uptick on VA refi’s. What does this data show us? It appears that we’re (I’m a Millennial FYI) taking advantage of refinance opportunities and paying attention to the interest rate environment. It’s
I read this article earlier today and it really got me thinking. Technically, for a loan to be categorized as a “Qualified Mortgage” the DTI ratio must be 43%... or (and that’s a big OR) the loan fits into the GSE’s eligibility requirements, which for FNMA & FHLMC could mean a DTI of 50% (this is the QM Patch). This is a curious topic and it sparks debate, so much so that the Trump Administration has gone as far as saying it gives the GSE’s an unfair advantage in the market.