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Michael Creed

Markets in a Minute – 4/21/2017

For the Week Ending April 21, 2017
 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

March’s Consumer Price Index, which measures inflation at the consumer level, declined 0.3% on a year-over-year basis. Decreasing inflation is good for rates.
While jobless claims were up slightly this week, the total number of people collecting unemployment benefits dropped to the lowest level in 17 years.
The Fed meets again in May to decide about rate policy. An increase is not likely at this time; however, two more increases are expected this year.

 

Housing starts were down 6.8% in March, but February’s numbers were corrected higher. The drop is largely blamed on poor weather and winter storms.
Pointing to underlying strength in the housing market, building permits increased 3.6% in March. Multi-family home permits surged 13.8% from February.
Homebuilders continue to be optimistic heading into the spring, with the NAHB index at 68. High demand for new construction homes continues.

 

I bought one of those courses that teaches you Spanish in your sleep. During the night the CD skipped. Now I can only stutter in Spanish.

 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

Public Record Changes in Credit Reports

As part of the National Consumer Assistance Plan, which covers a multitude of initiatives to strengthen the quality of credit reports and add transparency for consumers, the three nationwide consumer reporting agencies (NCRAs), Equifax®, Experian®, and TransUnion®, communicated upcoming changes to their collection of public record data. As part of this effort, the NCRAs have developed new standards for the collection and updating of civil judgments and tax liens. These new standards will require:

  • Minimum personally identifying information (PII): Name, address, SSN, and/or date of birth
  • Minimum update frequency to public records data

Preliminary analysis from the NCRAs of the changes to enhanced standards reveals the following:

  • Significant change is expected for civil judgment data as approximately 96% may not meet the enhanced PII requirements.
  • Significant change is expected for tax lien data as approximately 50% may not meet the enhanced PII requirements.
  • No change is anticipated for bankruptcy data.

The enhanced standards are scheduled to go into effect July 1, 2017 and may impact the public record information contained in credit reports obtained by Envoy Mortgage. The potential issue here is that, with the items noted above not being as likely to be on the credit report, we may find more files get hung up once the client is under contract when the title search is done. At that time, the civil judgments and tax liens could pop up. 

If you have questions about this, please contact us for additional information.