(RECAP: Increased mortgage borrowing was behind a 1.1 percent rise in U.S. household debt in the first quarter, with slowdowns in other areas such as credit-card balances and auto loans, according to the Federal Reserve Bank of New York. Total mortgage debt rose 1.5 percent from the final quarter of 2015 to $8.37 trillion, marking the highest level since the third quarter of 2011, according to the New York Fed’s quarterly report on household debt and credit, released Tuesday.)

Powered by WPeMatico

(RECAP: Federal Housing Finance Agency Director Mel Watt sounded alarm bells Wednesday about Home Loan Banks’ reliance on small-term funding in the form of discount notes. During a speech to the FHLB’s director’s conference, he noted that at yearend 2015, discount notes made up 54% of outstanding Home Loan Bank debt, compared to 43% in 2014 and 39% in 2013. “Small-term funding requires more frequent debt rollover than longer-term funding and this could become a safety and soundness issue if liquidity dries up unexpectedly,” Watt said. “The FHLBs and the Office of Finance are having ongoing discussions about how to address this issue.” Watt also reiterated concerns regarding insurance companies and large bank members, saying that some FHLBs have large exposures to a few individual members.)

Powered by WPeMatico

(RECAP: Graduates of four-year colleges who took out student loans are estimated to spend more than a decade saving up for a 20% down payment on their very own home, according to a recent report. That’s nearly double the 5.3 years it is expected to take those lucky grads who didn’t have to take out loans to fund their education, according to an Apartment List report. The report factors in the financial help buyers will receive from friends and family to pay for a $200,000 home. But it did not take into account the various no- or low-down-payment options available for U.S. military personnel (current and retired) and first-time and other eligible buyers. (First-time buyers often score 3.5% down mortgages through the FHA.)

Powered by WPeMatico