Chicago Metro Median Home Price Rising

The median home price for homes sold in the Chicago Metro area is slightly tracking upward over the last few months. Below is a chart tracking the monthly median home price for the last 3 years.

Click on the image below for a larger view.

Is this a sign of improvement in sales coming next Spring? It is too early to tell. We will monitor this situation closely over the coming months and report back.

Times Are Tough in Miami

The Conforming loan originations for Miami have dropped by over 50% when comparing September 2009 vs. September 2008.

Click on the image below for a larger view.

This market has probably not reached the bottom yet. Some estimates are suggesting that the median home price in Miami could drop another 30% by next June. Let us hope they are wrong. We will continue to monitor this market over the next six to eight months.

National FHA Purchase Mortgages Reaches New High

FHA Purchase Mortgage Originations reaches new two year high nationally in August 2009. There were 109, 110 FHA Purchase Mortgages in August 2009 a slight increase over the previous high in August 2008 of 107,357. See the chart below to see the monthly originations trend from September 2007 to the present.

Click on the image for a larger view.

FHA has set even more aggressive goals for Fiscal Year 2010, so these numbers my continue to rise over the next year.

Union Bank Largest Mover in 2008

Union Bank of California showed the largest increase in market share from 2007 to 2008 in Los Angeles County when analyzing Home Mortgage Disclosure Act (HMDA) data that just became available.

Take a look at the top ten movers in LA County from 2007 to 2008.

Mortgage Refinance Boom! Is 2003 Here Again?

Today's Wall Street Journal, Amy Hoak talks about MBA's survey of mortgage applications for the prior week.  The survey showed a 12.8% rise mostly from mortgage refinance applications.

Recordings of mortgage deeds confirm a steady month over month rise in the number of refinance mortgage originations during 2009.  With fixed mortgage rates falling below 5 percent,  interest rates are below the rates of the 2003 refi boom.  We do not expect mortgage originations in this current refi boom to approach the levels seen in 2003.  During 2003 the refinances included large equity extractions.  This time around, most  mortgage refinances are used to replace existing mortgage debt at lower cost. Less "cash out" refinancing is taking place as compared with 2003. In other words. these refinances are real mortgage refinances. Homeowners who refinance are improving their cash flow and their net worth.

Using recordings of mortgage deeds of trust at county court houses, MortgageDataWeb ranked the top conventional refinance mortgage lenders and the top FHAVA (Government Insured) mortgage refinance lenders based upon data collected through July for 2009.

Conventional Refinance Mortgage Leading Lenders

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FHAVA Refinance Mortgage Leading Lenders

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It must be great to be a mortgage lender still standing in 2009!

In Oregon Wells Fargo Gets More Mortgage Market Share

Wells Fargo has more than doubled their market share for conventional mortgage originations in Oregon. Their market share approached 24 percent in July. Last year, during a very weak mortgage market, Wells Fargo had roughly 12 percent of conventional mortgages in Oregon. The chart above show the market share growth of Wells Fargo.

Now you can view Wells Fargo’s mortgage origination performance and the market share performance of other leading mortgage lenders using MortgageDataWeb. The Test Drive feature includes current mortgage data for selected areas. At MortgageDataWeb's Test Drive site, users can obtain up to date market share reports by metropolitan area, county, or town. Mortgage types include conventional, FHA, and VA mortgages. This week the test drive areas include Illinois and Oregon.

Mortgage lenders, marketing managers, housing finance researches, or anyone requiring mortgage origination data in geographic area markets will find this site informative, useful, and easy to use. The geographic areas included in the test drive are limited subject to change. The test drive allows you to observe the quality of mortgage data and reports, and the ease of use of MortgageDataWeb's mortgage market share data and reporting features.

http://mortgagedataweb.com/MDWelcome/TestDrive.aspx

Test Drive Mortgage Market Share Reports for Arizona and Connecticut

MortgageDataWeb provides mortgage lender market share data and statistics for mortgage markets across the nation. A Test Drive feature includes current mortgage data for selected areas. At MortgageDataWeb's Test Drive site, users can obtain up to date market share reports by metropolitan area, county, or town. Mortgage types include conventional, FHA, and VA mortgages.  This weeks test drive areas include Arizona and Connecticut.

Mortgage lenders, marketing managers, housing finance researches, or anyone requiring mortgage origination data in geographic area markets will find this site informative, useful, and easy to use. The geographic areas included in the test drive are limited subject to change. The test drive allows you to observe the quality of mortgage data and reports, and the ease of use of MortgageDataWeb's mortgage market share data and reporting features.
 
http://mortgagedataweb.com/MDWelcome/TestDrive.aspx

Are Mortgage Markets Concentrated or Competitive? Look at Virginia

This weeks' National Mortgage News (September 7, 2009) top residential originator summaries suggest that Wells Fargo and Bank of America accounted for 44% of all residential funding. If this is true then where is the Justice Department on antitrust law enforcement? These types of market shares potentially give these lenders pricing and service powers to squeeze out the competitors. Well not so fast!


We used mortgage data for Virginia (later this can be extended too many more markets) and compared the competitive landscape today to the Virginia mortgage market in 2006. Virginia is a typical mortgage market for this experiment. 2006 was a good year to compare because the major turmoil in mortgage markets showed their ugly face in 2007. We calculated the Herfindahl-Hirschman Index (HHI) as a statistic to measure mortgage market concentration. Conventional purchase and refinance mortgage recordings for the first six months of 2006 was compared to 2009.

In 2006 the HHI value was 235 indicated a very competitive mortgage market having dozens of mortgage lender participants. In 2009, HHI climbed to 552. This is hardly a concentrated mortgage market and values of 552 would not be possible with 2 lenders having 44 percent of the market. No way Jose!

Even with mega mergers of Countrywide / Bank of America and Wachovia/ Wells Fargo, we still have competitive mortgage markets. It is true that the markets are much less competitive than they were just a few years ago but they are still competitive.

Howard Hanna Financial Now Top FHA/VA Originator in Cleveland Metro

Howard Hanna Financial Services now leads the FHAVA mortgage market in Cleveland Ohio.  For the year to date period ending July 2009, Howard Hanna has captured 7.65% of the market with $73.5 million in FHAVA mortgage originations.  During the same period last year, Howard Hanna had a market share of 5.83 percent with $39.5 million in originations.

J.P. Morgan Chase, who led the Cleveland metropolitan area market last year appears to have dropped off their FHAVA lending.  J.P. Morgan currently ranks 18th in the Cleveland FHAVA mortgage market.

Mortgage Market Share and Lender Rankings: Test Drive MortgageDataWeb

MortgageDataWeb provides mortgage lender market share data and statistics for mortgage markets across the nation.  A Test Drive feature includes current mortgage data for selected areas.  At MortgageDataWeb's Test Drive site, users can obtain up to date market share reports by metropolitan area, county, or town. Mortgage types include conventional, FHA, and VA mortgages.

Mortgage lenders, marketing managers, housing finance researches, or anyone requiring mortgage origination data in geographic area markets will find this site informative, useful, and easy to use.  The geographic areas included in the test drive are limited subject to change.  The test drive allows you to observe the quality of mortgage data and reports, and the ease of use of  MortgageDataWeb's mortgage market share data and reporting features.

Mortgage Loan Modifications, How is Your Lender Doing?

Bank of America, Wells Fargo, CitiMortgage, JPMorgan Chase, and many other mortgage loan servicers have beefed up their staff resources to process the backlog of mortgage loan modification requests.  Do you think these banks are providing adequate services? Are they being fair their mortgagor customers? How about the investors in these mortgages?  What are your first hand experiences in loan workouts with these or other lenders?

Where to capture Taylor, Bean & Whitaker's Mortgage Market Share

Now that Taylor Bean Whitaker Mortgage has been knocked down, which mortgage companies are going to capture their market share? It helps to know which markets Taylor, Bean, and Whitaker were strong in. See the reports below to find out where Talyor, Bean, Whitaker, originated most of their mortgage loans in 2009.

The following report shows the top ten counties in the country where Taylor, Bean, and Whitaker originated conventional mortgages during the first six months of 2009.

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The following table shows the top ten counties in the nation where Taylor, Bean, and Whitaker originated FHA mortgages during the first six months of 2009

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The following table shows the top ten counties in the nation where Taylor, Bean, and Whitaker originated VA mortgages during the first six months of 2009.

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Yup, we have the data to show you where Taylor, Bean, Whitaker (or anyone else) stands in your market area as well. Contact us if you need to know more.

Average Purchase Mortgages Are Rising

One of the signs that we are looking for to see if the housing market is starting to recover is the Average Purchase Mortgage Amounts. This may point to sign that housing prices are starting rise again. The chart belows shows the Average Conventional Mortgage Amount for 2009 Nationally.



Click on the image below for a larger view of the chart.


This is something we will definitely be watching in the coming months.

Taylor Bean & Whittaker Suspended By FHA

The Federal Housing Administration citing irresponsible lending and failure to file required financial reports suspended TBW from participation in FHA programs. This impacts not only TBW but many lenders who went to them for funding.

Where will the Correspondent Lenders go with FHA's suspension of TBW for funding? MortgageDataWeb has a report showing Taylor Bean & Whittaker's Top Correspondent Lenders for 2009. These companies are now in the market for new funders as well as many other TBW Correspondent Lenders that didn't make the Top 15. Contact MortgageDataWeb to see who some other Correspondent Lenders that may be impacted by TBW's suspension.

Mortgage Nostalgia, Miami Style

Click Chart for Larger View and More Statistics

Looking back four years ago, the market share data report shown above describes conventional purchase mortgages in Miami metropolitan area from April 2005 through June 2005. This was a peak time in the housing boom and a peak time for sub prime. It was a great time to be a mortgage originator.

The lender names in the report are almost a list of who headed to the graveyard. Eight of these companies are no longer in business. Two of the four leading lenders merged into mega lenders.

Note some ratios such as adjustable rate mortgages to total originations or the proportion of high loan to value mortgages. Today, most mortgage markets rarely show high incidences of adjustable rate mortgages or high loan to value ratios.

Jumbo Size FHA Mortgages

Click on Chart for Larger View and More Statistics

The chart above shows the monthly number of FHA mortgage originations having mortgage loan amounts of $417,000 and over(referred to as "jumbo FHA mortgages"). Several Observations:

• FHA is grabbing a larger share of the jumbo mortgage segment of the market.
• FHA jumbo refinance mortgages are outpacing FHA purchase mortgages
• The average mortgage for these jumbo FHA mortgages are now over $500,000
• The jumbo FHA are in the higher priced metropolitan areas and counties.
• The top 5 counties in the nation for FHA jumbo mortgages in 2009 are; 1) Los Angeles, CA; 2) Orange, CA; 3) San Diego, CA; 4) Kings (Brooklyn), NY; and 5) Queens, NY
• The county having the highest average jumbo FHA purchase mortgage was Marin, California ($595,000)
• The County having the highest average jumbo FHA refinance mortgage was Hunterdon, NJ ($448,000)

A one percent loan origination fee is not so bad after all!

DAS Acquisition Leads Missouri's FHA VA Mortgage Market

The report above display FHA and VA mortgage lending in Missouri for 2009 through May. DAS Acquisition Company, LLC, owner of USA Mortgage obtained a 5.14% market share with 1,263 purchase and refinance mortgage originations in 2009. DAS Acquisition's FHAVA mortgage amounts total nearly $192 million this year. Countrywide Home Loans trails DAS Acquisition by $50 million with these mortgage products. Refinance mortgages originated by DAS Acquisition were out pacing purchase money mortgage originations by more than two to one.

DAS Acquisitions has eleven branch offices in Missouri. Most of their FHA and VA loan originations were found in St. Louis, St Charles, and Jefferson Counties.

Way to go!

New Record on FHA Refinance Mortgages in May

The chart shows monthly number of FHA refinance mortgage originations.

Click on Chart for Larger View and More Statistics

FHA refinance mortgage originations reached a new monthly high in May. May also represents the sixth consecutive month of increases in the number of FHA refinance transactions. There were 83,458 FHA refinance mortgages in May and the total loan amounts were 16.48 billion dollars. This represents a 68 percent increase in the number of FHA refinance origination over the prior year. In May of 2008, there were 49,680 FHA refinance mortgages and a total refinance loan amount of 8.85 billion dollars. In April of this year there were 81,078 FHA refinance mortgages with total loan amounts of 15.79 billion dollars. The monthly increase over April 2009 was 3 percent.

FHA loan products gives mortgage lenders something to do!

Equity Source Home Loans is the leading FHA VA Refi Mortgage Lender in NJ

Equity Source Home Loans of Morganville, NJ, is the leading lender in New Jersey for FHA and VA refinance mortgages.

Click Report for Larger View and More Data

The report above display FHA and VA mortgage lending in New Jersey for 2009 through April. Equity Source HL obtained a 6.89% market share with 896 refinance mortgage originations in 2009. This places Equity Source HL well ahead of Countrywide (now part of Bank of America) which had a market share of 4.38% with 616 FHA VA refinance mortgages in New Jersey.

Equity Source has 13 branch offices in New Jersey. The area of highest concentration of Equity Source's mortgage originations were found in Ocean County, New Jersey.

Impressive!

If TBW Does Not First Succeed, Just Settle, Pay Fine, and Move On!

The Gainesville Sun reports that Taylor, Bean, and Whitaker Mortgage (TB&W) agreed to pay state agencies a $9 million dollar settlement for modifying loan applicant information to obtain lending approval. This applies to mortgages originated in 2006 and 2007. The article states that Lee Farkas, TB&W’s president, did not admit to any wrongdoing.

MortgageDataWeb checked Home Mortgage Disclosure Act (HMDA) data for 2006 and 2007. Using TB&W’s HMDA data we used the rate spread field to determine if TB&W originated mortgages had annual percentage rates in range commonly recognized as subprime mortgages. The HMDA data records examined include first lien conventional purchase or refinance mortgages having conforming loan amounts on owner occupied site built homes. None of TB&W’s mortgages for this category in 2006 or in 2007 had a rate spread value. This suggests that all of TBW’s mortgage originations had annual percentage rates below the 3 percent reporting threshold. TB&W's mortgages are not subprime mortgages.

Many other mortgage originators charged home borrowers excessively high fees and interest rates much higher than TB&W. These other mortgage originators made a large contribution to the collapse of the housing and finance industries. TB&W was responsible for the mortgage and housing train wreck.

You would think there are other lenders that state agencies can pick on in order to serve the public interest. Feel free to name any that are still around!

The Disappearing ARM Mortgage

Adjustable rate mortgages (ARMs) use to be popular products. Recent news about many borrowers having difficulty meeting new payments when their adjustable rate mortgages were recast were likely contributors to the falloff in demand for these products. The decline in adjustable rate mortgages over time is remarkable.

Click Chart for Larger View and More Data

The chart above shows the monthly percentage of mortgages having adjustable rates. The percentage of fixed rate mortgages would be the difference from 100 for adjustable rate mortgages. The chart shows ARMs reached a peak (or fixed rate mortgages reached a low) in years 2004 and 2005. Isn't that the same time irrational exuberance peaked in mortgage lending?

FHA Mortgages Thematic Map

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The map shows the number of FHA mortgage originations (purchase and refinance combined) by county in the U.S. for 2008. The warm colors show the areas having the highest amounts of FHA mortgages while the cool colors are county areas having the fewest numbers of FHA mortgages. Alaska, Hawaii, and Puerto Rico were position adjusted and rescaled.

Contact MortgageDataWeb to order historical mortgage data, current mortgage data, by geographic location for all types of mortgages.

Las Vegas Mortgage Market Concentration

Mortgage market concentration describes the level in which a few mortgage firms account for the preponderance of the total share of business in the market. Sometimes the winner takes all or mostly all of the business in a market. In general, mortgage markets are competitive. There are many firms competing to originate mortgages in Las Vegas.

By applying metrics, we can observe trends over time and determine if the markets are moving towards greater market concentration (when a few mortgage firms dominate the market) or moving towards greater competition (the leaders of the market have smaller portions of the total).

Two measurements of concentration were applied to the mortgage market for Las Vegas. The data comes from MortgageDataWeb's municipal mortgage records database. One metric, known as a concentration ratio, measures the share of the market attributed to the top “n” mortgage lenders. Low values of concentration ratio describe competitive markets. High concentration ratios suggest market domination by the top firms. Another measurement of market concentration is the Herfindahl-Hirschman Index (HHI). HHI is equal to the sum of the squares of market share of each participant in the market. If a small hand full of firms have very large market share, the market will show higher values for HHI. If a lender had a 35 percent market share, HHI will exceed 1200 for the market. If the top lender had a 10 percent market share then HHI would not exceed 1000.

Click Chart for Large View

The chart above shows the mortgage market concentration ratio for Las Vegas metropolitan area for year from 2003 to 2009 (year to date). Both the concentration ratio for the top 20 mortgage lenders and the HHI were included. The concentration ratio reached a bottom in 2005. 2005 was the peak year of home prices growth, subprime lending, and the irrational exuberance that lead to the breakdown of housing and mortgage lending in the years that followed.. Many mortgage company participants were involved in Las Vegas and homeowners in Las Vegas were less partial to any particular mortgage lender. Since 2005, the concentration ratio increased. Fewer mortgage companies participated in loan originations within Las Vegas. HHI, plotted on the same chart above tracked the concentration ratio for the top 20 lenders. The HHI value was lowest in 2005 and increased each year showing that the direction moved towards increased market concentration. The markets were not dominated since HHI remained relatively low.

Market concentration in Las Vegas seems to have stabilized. As more bank failures occur and more mergers occur, we have a potential problem moving forward however the numbers show a very competitive mortgage market in Las Vegas.

Geography of Veterans' Administration Mortgages

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The thematic map shows the number of Veterans' Administration (VA) guaranteed mortgages originated by county in the U.S. for 2008. The hotter colors show the higher incidences of VA mortgages. Note the regional clusters in the southwest, the Seattle Metropolitan area, and central Texas. Many of the highly populated metropolitan areas in the northeast do not show high incidences of VA mortgages.

Previously, a thematic map of VA mortgage originations by county appeared on this blog. That map covered the January through June 2008 period. The same classifications of colors was used enabling readers to observe the time oriented changes between the two periods. Clearly there has been considerable growth in VA mortgage originations in the second half of 2008.

FHA Mortgages Setting New Refiance Records in April 2009

FHA was the vehicle of choice for borrowers refinancing more than $15 billion of home mortgages in April. This is a new monthly record. April was the second consecutive month that had FHA refinance originations exceeding 15 billion.

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The chart below shows monthly total FHA mortgage originations (dollars in thousands) used to refinance existing home mortgages.

Click Chart for Larger View and More Statistics

On another note the average FHA refiance mortgage climbed to a new record of $193,500 in April. FHA is gaining market share at the expense of conventional home financing products.

Fairfax Virginia New Home Owners Carry Less Mortgage Debt

In Fairfax County, VA., the average mortgage amount for $conforming (non jumbo) mortgages declined to $272,000 during the first quarter of 2009. This is more than a 16% decrease from the average mortgage loan amount of $conforming mortgages in Fairfax County Virginia during the first quarter of 2008 when the average loan was $317,000.

Click on Chart for Larger View and More Statistics

The chart above shows the monthly average mortgage amount for conventional purchase money mortgages on properties in Fairfax County Virginia. Only conventional mortgages having mortgage amount below the conforming limit are included ($417,000 for mortgages with closing dates in 2006, 2007, 2008 and 2009 and $360,000 for mortgages having closing dates in 2005).

Home purchasers are able to obtain lower first lien mortgages to purchase homes in Fairfax as a result of decreases in home prices.

The savings to Fairfax home owners has its costs to mortgage lenders. Not only are mortgage lenders originating fewer mortgages, the reduced loan amounts result in reduced loan origination fees. Mortgage lenders typically charge 1 percent of the mortgage amount for their compensation in originating the mortgage.

Gulf Coast B & T is the New Mortgage Origination Leader in New Orleans

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The New Orleans mortgage market use to be dominated by the large national bank holding companies. You would need to look back a long time ago to not see mortgage lenders such as Countrywide, JP Morgan Chase, and Wells Fargo as the leaders of the New Orleans mortgage market.

Things are different in 2009. Banks and mortgage lenders headquartered here in New Orleans metro are out performing the national companies. The report above provides mortgage market share of mortgage lenders who originated conventional purchase mortgages in New Orleans for the first quarter of 2009. Gulf Coast Bank and Trust is the leader. Standard Mortgage and Whitney National Bank are near the top in conventional mortgages.

The market share report below describes FHA mortgage market share. Gulf Coast Bank and Trust leads the New Orleans mortgage market originating the most FHA purchase mortgages in 2007. Eustis Mortgage and Standard Mortgage are second and third in FHA mortgages in New Orleans.

Click Chart for Larger Image and More Statistics

The Business Bank Approaches the Top of Minneapolis FHAVA

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What a difference a year makes. During the first quarter of 2008, few mortgage lenders realized that FHA and VA mortgages were to become the key growth products in their markets. In metropolitan Minneapolis, only 1,903 FHA and VA mortgages totaling $370 million were originated in the first three months of 2008. The volume in the first three months of 2009 was triple over the same period in 2008. FHAVA originations passed $1 billion.

The Minneapolis mortgage market’s “green shoot” is The Business Bank of Minnetonka. The Business Bank, whose mortgage division is known as Prime Mortgage, gained the largest market share during over the past year. In the Minneapolis market area, The Business Bank ranked 19th in FHA VA mortgage originations during the first quarter in 2008. Now in 2009 they are second in the market right behind Wells Fargo. A local bank is about to challenge Well’s first place position.

Welcome The Business Bank to the big boy club of Minneapolis!

FHA/VA Average Mortgage Amount Reaches Three Year High

In March 2009, the Average FHA/VA Mortgage Amount reached a new monthly high during the January 2006 through March 2009 timeframe. The FHA/VA Average Mortgage in March was $185, 752. See the chart below for the month-by-month trend over the last three years.

Click on the image below for a larger view.

As the chart shows, this growth in the FHA/VA Average Mortgage Amount has been pretty consistent since the maximum loan amounts were raised last year. As the housing market bounces back, we should expect this trend to continue. We will perform this analysis again in the future to see if we are correct.

Higher Average Loan Amounts on Conventional Refinance Mortgages

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There has been a spike in the average mortgage loan amount for conventional refinance mortgages. This makes sense based upon the record low interest rates for new mortgages and the need for homeowners having variable rate mortgages to replace them with less risky fixed rate mortgages. More home owner debt refinanced at current interest rates results in significant savings for the borrowers. Based upon data collected from municipal recordings from more than 500 counties nationwide, the average conventional refinance mortgage jumped passed $210,000 in 2009 from below $200,000 in 2008. Because of stricter underwriting requirements and depressed home values, fewer conventional refinance mortgages were originated than previous time periods during the past 10 years.