by Bill McBride on 11/30/2015 09:04:00 PM
Monday, November 30, 2015
From the LA Times: After subprime collapse, nonbank lenders again dominate riskier mortgages
So-called nonbank lenders are again dominating a riskier corner of the housing market — this time, loans insured by the Federal Housing Administration, aimed at first-time and bad-credit buyers. Such lenders now control 64% of the market for FHA and similar Veterans Affairs loans, compared with 18% in 2010.This is probably not a serious problem, but additional oversight makes sense.
A Times analysis of federal loan data shows that FHA mortgages from nonbank lenders are seeing more delinquencies than similar loans from banks.
"The idea that a lot of the folks who benefited during subprime are now back in action calls out for closer scrutiny," said Kevin Stein, associate director of the California Reinvestment Coalition, a fair-lending advocacy group in San Francisco.
The surge in nonbank lending also has prompted alarm at Ginnie Mae, a government corporation that monitors FHA and VA lenders. Ginnie Mae's president, Ted Tozer, has requested $5 million in additional federal funding to hire 33 additional regulators.
"These firms have grown so fast," he said.
• At 10:00 AM ET, ISM Manufacturing Index for November. The consensus is for the ISM to be at 50.5, up from 50.1 in October. The employment index was at 47.6% in October, and the new orders index was at 52.9%.
• Also at 10:00 AM, Construction Spending for October. The consensus is for a 0.6% increase in construction spending.
• All day: Light vehicle sales for November. The consensus is for light vehicle sales to decrease to 18.0 million SAAR in November from 18.1 million in October (Seasonally Adjusted Annual Rate).
Posted by Bill McBride on 11/30/2015 09:04:00 PM