Refinance numbers have launched up above the peak of 2012. Today, there appear to be more than 8.7 million refi candidates in the market. This seems to be the result […]
Court Deems Unconstitutional The U.S. consumer watchdog’s structure has been deemed unconstitutional by the U.S. Appeals Court. The court pointed out that too much power was put into the hands […]
Refinance numbers have launched up above the peak of 2012. Today, there appear to be more than 8.7 million refi candidates in the market. This seems to be the result of the U.S. Treasury bond market which has seen a significant bump as investors shifted their interest after Brexit.
Even though refinance rates have only dropped by 15 basis points, it appears that was enough to inflate the market with an additional 1.3 million borrowers. This means that there are more people in the market today then there were when mortgage rates hit rock bottom in 2015.
In South Florida, it appears the difference is equating to an uptick of 30% versus last year’s numbers.
Other experts do not believe it has anything to do with Brexit, but it is a result of limited housing inventory with low-interest rates. This is causing an increase in home prices. As millennials are searching for homes, and baby boomers are downsizing into well-appointed homes or condos at higher price points.
Homes are selling in a matter of days, and often over the listing price. This rise in values will show an increase in equity for those staying put. Add to the fact that credit scores are starting to improve and you have more qualified homeowners with the ability to refinance their homes.
It would appear that this is a perfect mixture to keep the refi market on fire and moving forward.
Court Deems Unconstitutional
The U.S. consumer watchdog’s structure has been deemed unconstitutional by the U.S. Appeals Court. The court pointed out that too much power was put into the hands of one agency director.
The Consumer Financial Protection Bureau, or CFPB, has been under fire since its creation following the financial crisis of 2008-2009. The Court went on to say that it is unconstitutional to limit the power of The President of the United States by not allowing him to remove an agency director.
The law creating this independent agency stated that the director’s removal could only be for cause and not over political differences. This conflicted the constitution, which says the president can remove a person for any reason.
The federal government disagreed with the court decision saying it was constitutional.
Richard Cordray, a Democrat, has been on top of the agency since it began in 2011. His term does not end until 2018, so his reign likely will not be affected unless Donald Trump were to become president.
The case, which brought about this decision, involved allegations that a mortgage lender in New Jersey was receiving illegal kickbacks from mortgage insurance company referrals. The CFPB ordered the company to pay back the ill-gotten funds, and the company challenged the bureau’s structure and believed their actions to be legal.
“The Bureau respectfully disagrees with the court’s decision,” CFPB spokeswoman Moira Vahey communicated in her statement. “The Bureau believes that Congress’ decision to make the director removable only for cause is consistent with Supreme Court precedent, and the Bureau is considering options for seeking further review of the court’s decision.”
Refi Season is Red Hot
UncategorizedRefinance numbers have launched up above the peak of 2012. Today, there appear to be more than 8.7 million refi candidates in the market. This seems to be the result […]
Consumer Financial Protection Bureau
UncategorizedCourt Deems Unconstitutional The U.S. consumer watchdog’s structure has been deemed unconstitutional by the U.S. Appeals Court. The court pointed out that too much power was put into the hands […]