Credit Scores and Down Payments Reach All-Time Highs

first_img Previous: Biden Says His Economics Team ‘Will Deliver Immediate Relief’ Next: What is Driving the Increase in Forbearance Activity? Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Faced with elevated home prices and stricter credit requirements, borrowers in Q3 placed, on average, higher down payments on their mortgage loans than ever before, according to Bloomberg.Citing a report from ATTOM Data Solutions, Bloomberg reports the median down payment for single-family residences was $20,775 in the third quarter. That, reported Bloomberg, is the highest in records going back to 2000, “up 69% from $12,325 a year earlier, before record-low mortgage rates kicked the housing boom into a higher gear.”During Q3, homebuyers placed down 6.6% of the median sales price of the home they were financing, which is 4.7% higher than last year’s third quarter. It also is the highest average down payment since 2018. Median Q3 loan amounts, $275,500, were the highest since 2000, up 24% from the same period in 2019.A source from ATTOM has attributed the increased down payments to increasingly rigorous credit standards.”Down payments are rising at a time when lenders are tightening their guidelines,” said Todd Teta, Chief Product Officer at ATTOM Data Solutions. “Lenders have grown more cautious in order to protect themselves from more delinquencies.”Referring to a Freddie Mac report from late November, Bloomberg reported that mortgage companies are “raking in cash in the midst of the pandemic, earning hefty margins while consumers flood in to buy homes or refinance existing loans to take advantage of record-low mortgage rates. The average for a 30-year, fixed loan tumbled to 2.72% this week, the lowest in data going back almost 50 years.”Bloomberg reporters Prashant Gopal and Shahien Nasiripour deduce: “It’s no wonder that lenders have gotten pickier than they have been in decades … lenders including JPMorgan Chase & Co. have tightened terms for borrowers amid widespread worry about future economic growth.”They cite, for example, the fact that JPMorgan in early November told loan officers that it would “limit jumbo loans to 70% of the sale price for most co-ops and condominiums in Manhattan.”In Q3, report Gopal and Nasiripour, the average borrower had a 786 credit score—that is the highest median score since 1999. They added that last month saw the highest mortgage origination numbers since 2003 (citing the Fed). Related Articles Home / Daily Dose / Credit Scores and Down Payments Reach All-Time Highs About Author: Christina Hughes Babb  Print This Post Share Save Demand Propels Home Prices Upward 2 days ago Credit Scores and Down Payments Reach All-Time Highs Servicers Navigate the Post-Pandemic World 2 days ago Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Newscenter_img Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Credit Scores Down Payment Data Provider Black Knight to Acquire Top of Mind 2 days ago Credit Scores Down Payment 2020-11-30 Christina Hughes Babb November 30, 2020 13,082 Views The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Subscribelast_img read more

FIFA Proposes a New Mini-World Cup

first_imgUgo Aliogo with agency reportComing barely months after expanding the 2026 World Cup from 32 teams to a 48-team format, FIFA President Gianni Infantino has proposed staging what would effectively be a new mini-World Cup, featuring eight international teams, every two years in addition to the traditional event.According to Reuters, the tournament to be known as the “Final 8”, would be the climax of a proposed global Nations League competition, part of an ambitious plan to reform international football which FIFA believes could be worth $25 billion in a 12-year cycle. In a letter seen by Reuters, Infantino, suggested that the new tournament would take place every October and/or November of every odd year starting from 2021.He said that a “solid and serious” group of investors were willing to spend $25 billion on the competition and a revamped version of the Club World Cup, which would also start in 2021 with 24 teams.The Confederations Cup, currently staged every four years in a year before the World Cup, would be abolished.The letter did not clearly indicate how many slots would be allocated to each region.The plans were sent by Infantino to the members of FIFA’s decision-making Council which still has to approve them.The new competition would run parallel to existing international tournaments such as the European Championship, Copa America, and African Nations Cup, plus the World Cup qualifying stages.It could lead to criticism that FIFA is over-complicating international football and devaluing its flagship World Cup.FIFA could not immediately be reached for comment.European soccer body UEFA and its counterpart for North and Central America and the Caribbean, CONCACAF, have already set up Nations League contests in their own continents.In both cases, the competitions involve all the national teams in their respective regions who are divided into divisions based on their rankings.There is promotion and relegation between the divisions, as in conventional domestic club leagues. UEFA’s inaugural competition will begin in September this year. Other continents would have to set up similar competitions for the tournament to be viable.Infantino suggested that similar intercontinental mini-tournaments to the Final 8 could also be organised for the top teams in the lower divisions.Infantino’s letter said that all revenue from the competition would be redistributed.“This means that FIFA as an organisation would not benefit financially from this competition,” he said.“We believe this offer is an excellent opportunity for the confederations and member associations as well as for football in general.”In a separate proposal for Europe, the letter suggested that member associations could receive up to $50 million for taking part in a single UEFA Nations League campaign although this amount would only be for the top-five ranking federations.The next biggest five European countries would receive $15 million to $20 million while the 33 lowest-ranked associations would receive a more modest $7 million.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegramlast_img read more