Credit & Housing Market Trends and Technologies

Homeowners are borrowing again, as HELOC lending increased 27 percent in Q2 2014

Experian–Oliver Wyman data reports $120 billion in new home-equity credit loans in past year; Q2 2014 saw new mortgage originations totaling $292 billionMortgage origination volumes saw an increase of 15 percent in Q2 2014. Home-equity line of credit (HELOC) lending saw the biggest gains, according...read more

Auto Lending Naysayers Are Neglecting Key Facts

This is the first of a two part blog about the state of auto lending in the U.S. In 2014, auto lending has received increased media attention.  Unlike other forms of consumer lending, auto lending has been booming.  This lending has powered spending and has been an important driver of the economic...read more

The impact of the revived HELOC trend

  Residential real estate lending was the leading component of the Great Recession of 2007-2009.  Could it happen again?  Let’s analyze our Intelliview data  to see where U.S. lending trends are headed with HELOCs. A large portion of Home Equity Lines of Credit (HELOCs) were originated from 2004...read more

Updated CFPB mortgage rules expected to come into force January 2014

- Zach Smith, Experian On September 13, the Consumer Financial Protection Bureau (CFPB) announced final amendments to the mortgage rules that it issued earlier this year. The CFPB first issued the final mortgage rules in January 2013 and then released subsequent amendments in June. The final...read more

New findings revealed in white paper on leading indicators in local-area credit statistics

Recently we released a white paper that emphasizes the need for better, more granular indicators of local home-market conditions and borrower home equity, with a very interesting new finding on leading indicators in local-area credit statistics.  Click here to download the white paper Home-equity...read more

The irony in real estate originations

- by Alan Ikemura In my last two posts on bankcard and auto originations, I provided evidence as to why lenders have reason to feel optimistic about their growth prospects in 2012.  With real estate lending however, the recovery, or lack thereof looks like it may continue to struggle throughout the...read more

Where business models worked, and didn’t, and are most needed now in mortgages

  Part II: Where are Models Most Needed Now in Mortgages? (Click here if you missed Part I of this post.) A first important question should always be are all of your models, model uses, and model testing strategies, and your non-model processes, sound and optimal for your business?  But in today’s...read more

Where Business Models Worked, and Didn’t, and Are Most Needed Now in Mortgages

Part I: Types and Complexity of Models, and Unobservable or Omitted Variables or Relationships Since the financial crisis, it’s not unusual to read articles here and there about the “failure of models.” For example, a recent piece in Scientific American critiqued financial model “calibration,”...read more

Reserve-Fund Mortgages: A Way to Help Contain Emerging Housing-Market Bubbles?

This installment proposes a new type of mortgage product that could help to lower current risks of home-price bubbles in various strongly growing economies—and perhaps future risks in the U.S. and other countries as well. In booming economies like Brazil, China, Singapore, and Hong Kong, housing...read more

Wait til It’s 2005: Changing Housing Tax Preferences the Right Way

Unsurprisingly, Washington deficit hawks have been eyeing the “sacred cows” of tax preferences for homeownership for some time now. Policymakers might even unwind or eliminate the mortgage interest deductions and capital-gains exemptions on home appreciation that have been in place in the U.S for...read more