Top 10 housing markets least at-risk of declines

Hi, it's Ian. Today's newsletter will be a quick 2-minute read. Let’s dive in…

1. CFPB unveils plan to remove medical debts from credit reports

The Consumer Financial Protection Bureau (CFPB) has taken a firm stance in a plan revealed last week to eliminate medical bills from consumer credit reports.

This new direction, which the bureau introduced online and is headed by Vice President Kamala Harris, seeks to "aid families in bouncing back from medical emergencies, deter debt collectors from forcing unwarranted payments, and ensure accurate data devoid of inconsistencies is used by creditors," according to the CFPB.

The proposed rules, if cemented, will:

• Omit medical bills from credit histories.

• Prohibit creditors from factoring in medical bills for underwriting determinations.

• Curb forceful debt collection methods, ensuring debt collectors can't exploit credit report systems to push consumers into settling dubious debts.

2. Extra nuggets

📲 The billionaire keeping TikTok on phones in the U.S. (WSJ)

🧑‍🤝‍🧑 Why Wells Fargo is the only big bank where workers are trying to unionize. (Axios)

🏡 Fannie Mae’s chief economist on housing market outlook. (HW Media)

🌊 CrossCountry Mortgage CEO sells Florida home for $30M. (WSJ)

💸 Rising mortgage rates drive borrowers to buydown points. (CoreLogic)

3. Top 10 housing markets least at-risk of declines

Markets in the South and two New England states had the highest concentration of locales least likely to decline. That's the conclusion of ATTOM’s latest Housing Risk Report.

Based on various factors – such as the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded estimated property values, and local unemployment rates – ATTOM determined the following markets to be the least at-risk of declines.

4. Mortgage performance improvements could end soon

Black Knight data suggests that the downward trend in mortgage delinquencies may be nearing its end.

• August's delinquency rate was 3.17%, slightly better than July's 3.21%. However, the pace of year-over-year improvement has significantly decelerated, dropping from 43% in January 2022 to just 0.77% in August.

Short-term delinquencies ticked up in August, while serious delinquencies hit their lowest since June 2006. Foreclosure starts also rose by 21% in August.

The overall scenario indicates that the era of rapid improvements in mortgage performance could be plateauing. States like Mississippi, Louisiana, and Alabama reported the highest delinquency rates.

☀️ See you on Wednesday!

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