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...Its price to book value of nearly 3 times trumps that for mortgage-heavy Wall Street banks like JPMorgan, Bank of America and Wells Fargo. But Rocket doesn’t have appreciably higher return on equity....
...The National Association of Home Builders/Wells Fargo Housing Market Index rose to a reading of 37, up from 34 in October, marking the first increase in four months....
...Already, there has been an uptick in new mortgage applications and pending home sales....
...Next we’re going to tackle questions about choosing different types of mortgages, a decision that’s proving tricky for home buyers as well as those who are refinancing....
...Net mortgage lending rose €12bn last month, the biggest monthly increase for more than a year, largely driven by a jump in French home loans....
...A law firm consultant said a managing partner of a top firm once called his Newport, Rhode Island, holiday home, “the house that Citi built”, because of the deal he got on his mortgage....
...Neither the monster national players (JPMorgan Chase, Bank of America, Wells Fargo, Citigroup) nor the regionals (PNC, M&T, et al) have had much to say about the economy’s effect on credit quality....
...Wells Fargo is a case in point....
...Home improvement store Home Depot also reports earnings as well as energy groups Diamondback Energy and Chesapeake Energy and homebuilder Toll Brothers....
...The National Association of Home Builders/Wells Fargo housing market index fell from 56 to 50 this month, signalling a slowdown in business for companies that build single-family homes....
...More than 4,000 lenders provided home loans in the US last year, 60 per cent of which were made by independent mortgage companies, not banks....
...It didn’t turn out that well for the Pattersons either. When interest rates rose, they were unable to pay the mortgage. They sold up, split up and Maureen went to live in a mobile home....
...Great if you have a mortgage. It doesn’t grow while your wages do. Not bad also if you own equities. Tangible asset values, as well as dividends, rise with inflation....
...A bank loan officer denies a customer a third mortgage extension, in order to get a promotion. She gets the promotion....
...This month, US homebuilder confidence slipped for the first time this year according to an index compiled by the National Association of Home Builders and Wells Fargo....
...In December, the Consumer Financial Protection Bureau fined Wells Fargo $1.7bn and ordered it to pay $2bn in redress to customers for mismanagement of mortgages, car loans and bank accounts....
...occurred under Wells Fargo’s current leadership....
...Wells denied mortgage modifications that should have been allowed, leading some borrowers to lose their homes....
...But look at the average rate charged on existing mortgages: it is well below the central bank’s benchmark at just 2.19 per cent. This is far from normal....
...Mr Cooper, a US mortgage servicing company, has moved to a flexible model, built around a framework, avoiding a top-down mandate and allowing teams to set working norms....
...While the mortgage figures might look scary, China’s home buyers generally contribute large downpayments on their homes, and their loans are full recourse....
...By contrast, JPMorgan Chase and Wells Fargo — the nation’s first and third-largest banks, respectively — each had about $40bn in unrealised bond market losses, while fourth-largest Citigroup’s paper losses...
...High mortgage payments are adding pressure to homeowners’ finances as well as making housing stock less affordable after the pandemic triggered a price boom....
...Deutsche Bank originated the loan for the Westfield mall in 2016, while Park Hotels’ mortgage is serviced by Wells Fargo and was originally underwritten by JPMorgan....
...But the experience will be vastly different between different groups, with renters and those facing higher mortgage payments still being squeezed, while upper and middle income groups who own their own homes...
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