Morning Radar: Millennials, a generation of renters
HousingWire's Morning Radar looks at issues trending on the Internet.
Millenials, a generation of renters
A story to appear in the September issue of The Atlantic takes one of the deepest dives into something that gives many mortgage lenders pause. Young adults, the next generation of homeowners, may be renting for a while.
The homeownership rate among those younger than 35 fell by 12% from 2006 to 2011. And going forward, as more prefer denser locales in downtown areas, buying houses and cars may not become quite the priority it once was.
"If the millennials are not quite a post-Âdriving and post-owning generation, they'll almost certainly be a less-Âdriving and less-Âowning generation. That could mean some tough adjustments for the economy over the next several years," the authors write.
Citigroup settles an MBS suit
Citigroup paid $25 million to settle another suit from investors claiming they were misled about appraisal and underwriting standards.
It's the latest in a series of settlements struck by major banks since the housing crash. This suit from the Ann Arbor Employees' Retirement System and Greater Kansas City Laborers Pension Fund was filed in 2008.
The $25 million, however, "represents about $13.25 per $1,000 in initial face value of the two trusts named in the lawsuit, which would be equal to about $1.88 billion," according to the story in Reuters.
Serial refis still booming
More than 2.2 million borrowers refinanced more than once since 2008, according to a story in Marketwatch.
It's slowed but not by as much as one would think. During the housing boom between 2006 and 2008, nearly 3.5 million borrowers refinanced at least twice.
As AnnaMaria Andriotis explains, the refis are getting cheaper because they're being done to save rather than spend. Roughly 86% of those who refinanced during the boom took out cash and ended up with a larger loan amount.
Bruce Thielen, a vice president at NASB Financial, sums it up: "The traditional rules of refinancing are no longer in play."
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