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American National Mortgage

National Mortgage Settlement

Attorney General Rob McKennna discusses the national mortgage settlement. For more information go to www.nationalmortgagesettlement .com.

Income application fraud risk to rise in buying season: First American

After those seven consecutive months of overall rising defect risk, the index now reached its highest level since hitting 97 in December 2013. The all-time high point was 102 in October 2013. The index was 83 last February.

The purchase applications index was at 99, up 4 points from January. The refinancing index was at 86, up 3 points month-over-month.

Income fraud risk rose through much of the year, but stabilized recently behind moderate home price growth and dropping interest rates. But income fraud risk could increase as the spring home buying season gets going and likely becomes more of a seller's market again.

"Purchase loan applications typically are more likely to have fraud than refinance transactions," said First American Chief Economist Mark Fleming in a press release. "Furthermore, in the strong seller's market we experienced in 2018, borrowers have more motivation to misrepresent income on a loan application in order to qualify for the bigger mortgage necessary to win the bidding war for a home.

Home sales come closer to matching potential: First American

There was the potential for 5.17 million seasonally adjusted sales in February, a 1.5% increase over January. Compared with February 2018, the market potential declined by 2.9%, a loss of 153,000 sales.

Likely sellers who did not list their homes because they could not obtain a new mortgage at a rate equal to or lower than their current one cut the market potential by 90,000 sales over the past three months, said First American Chief Economist Mark Fleming in a press release.

The lack of newly constructed homes coming on the market contributed to a decline of another 8,000 potential sales during the same period.

But the next few months are looking better for sales.

"We've seen mortgage rates decline and wages rise — both trends work to boost house-buying power and fuel greater market potential for home sales, setting the stage for a stronger than expected spring home buying season," Fleming said.

"The decline in mortgage rates over the last three months may have encouraged some homeowners, who were 'rate locked-in ' by rising mortgage rates, to re-enter the market."

Historically, what has been the average length of home ownership &/or mortgage?

I have contacted to two trade associations with this question: the american mortgage assoc and the national assoc of realtors. They did not respond to my query. Again, how long do homeowners reside in the home before moving???

Historically, between 8 and 12 years for holding one's primary residence.

Between 4 and 7 years for holding the mortgage.