First-Time Buyer Mortgage Risk Index Shows Increased Risk in Mortgage Loans

Today’s News Synopsis:

In The News:

DS News – “Freddie Mac Sells Third Non-Performing Loan Bundle of 2015” (5-26-15)

“Freddie Mac has sold its third bundle of seriously delinquent single-family mortgage loans of 2015 via auction, according to an announcement from Freddie Mac on Tuesday afternoon.”

Bloomberg– “Home Prices in 20 U.S. Cities Increased 5% in Year to March” (5-26-15)

“Home prices in 20 U.S. cities rose at a faster pace than projected in the year through March, reflecting a limited number of available properties on the market.  The S&P/Case-Shiller index of property values increased 5 percent from March 2014 for a second month, the group said Tuesday in New York.”

Housing Wire – “First-time buyer share and mortgage risk grow” (5-26-15)

“First-time buyers accounted for 57.9% of primary owner-occupied home purchase mortgages with a government guarantee, up from 56.8% and 57.4% respectively in April 2014 and 2013, according to the American Enterprise Institute’s International Center on Housing Risk.”

DS News – “Leading Economic Index Spikes in April Driven By Housing Improvements” (5-26-15)

“The Conference Board’s Leading Economic Index (LEI) spiked by 0.7 percent in April up to 122.3, largely on the strength of improvements in housing. It was the second consecutive monthly increase for the LEI after experiencing a decline in February. The LEI jumped by 0.4 percent from February to March.”

Housing Wire – “Freddie Mac back with new high-LTV risk-sharing mortgage bond” (5-26-15)

“Freddie Mac is back in the market with its fourth risk-sharing deal of the year, as the government-sponsored enterprise continues in its push to alleviate the risk to the American taxpayers.”

Mortgage Professional America– “Prices, sales spike strongly in April” (5-26-15)

“Home prices spiked in April, but sales were still brisk, blowing past the expectations of economists.  The median price for a home rose 8.3% year over year in April to $297,300, according to a Reuters report.”

DS News – “Agency First-Time Buyer Index Shows Mortgage Loans Are Becoming Riskier” (5-26-15)

“The April 2015 First-Time Buyer Mortgage Risk Index (FBMRI) for Agency loans increased by nearly a full percentage point year-over-year up to 15.28 percent, indicating that those mortgage loans are moving deeper into the high-risk category, according to data released this week by the American Enterprise Institute (AEI)’s International Center on Housing Risk.”