U.S. mortgage market provides warning signs for U.K. lenders – NMP Skip to main content

U.S. mortgage market provides warning signs for U.K. lenders

National Mortgage Professional
Nov 18, 2007

NAMB releases new trend data on 2007 mortgage marketsMortgagePress.comMortgage trends 2007 The National Association Mortgage Brokers released new trend data that shows Mortgage Brokers continue to close fewer non-traditional (sub-prime) loans than in 2006. The data is part of an ongoing survey of Mortgage Brokers nationwide that is conducted by NAMB's research partner Wholesale Access Mortgage Research and Consulting Inc. The latest update confirms that the trend toward more traditional loans continues to be the norm in 2007 as the market corrects from a decade-long housing expansion. "This data shows that brokers are anticipating and meeting the changing needs of their customers," said NAMB President George Hanzimanolis, CRMS. "The shift in the market toward more traditional loan products is yet another reason we have cautioned Congress not to overreact to existing concerns and allow the market to adjust." Prime loans continue to make up the majority of all loans originated by Mortgage Brokers, according to the study. Though their share of the marketplace dipped slightly in April to roughly 56 percent—down from 61 percent in March—prime loans were still by far the most widely used class of mortgages. In April, only 11 percent of all loans offered were sub-prime. In 2006, 13 percent of all loans offered were sub-prime loans, designed for homebuyers with credit scores below 620. "This ongoing study further puts sub-prime mortgage issues in perspective," said Hanzimanolis. "For all the attention that these loans have received in the media, we're talking about a small—and shrinking—portion of the home-buying market." Researchers expect the monthly data to fluctuate throughout the year, as brokers adjust their loan offerings and the federal government continues to addresses concerns about the market. "There will be some volatility, but as the year progresses, the trend will be toward lower risk loans," said David Olson of Wholesale Access. "New legislation will make it more difficult to offer higher risk loans." The survey responses came from more than 200 brokers and were analyzed to compare types of loan products offered, adjustable versus fixed-rate offerings and combined loan-to-value ratios. For more information, visit www.namb.org.
Published
Nov 18, 2007
Battle Between Loan Originators Gets Sparkly and Dirty

Flowers is suing both Durosko and Peevey for these pranks, demanding compensation for their harmful acts, but that doesn’t tell the whole story. 

Industry News
May 18, 2022
FirstClose Receives $35M Investment From Lateral

Fintech says it will use the investment to expand its growing financial services footprint.

Industry News
May 18, 2022
Mortgage News Network Launches Podcast On Helping Underserved Borrowers

'Gated Communities' looks at why homeownership gap is increasing, and what lenders are doing to reverse the trend.

Industry News
May 17, 2022
Class Valuation Appoints EVP Of Valuation Modernization

Cristy Conolly will focus on removing bias from the equation in appraisals.

Industry News
May 17, 2022
Open Mortgage Appoints New Chief Financial Officer

Anthony Nolte, Open Mortgage's CFO since 2019, will transition to chief legal officer.

Industry News
May 17, 2022
Online Brokerage REX Pursues Litigation Against Zillow & NAR

The legal battle between REX Home Loans (Real Estate Exchange, Inc.) and NAR continues to heat up, even though REX is reported to have shut down operations.

Industry News
May 16, 2022