The amount of household debt increased in the third quarter and is now greater than the level consumers held at the bottom of the post-financial crisis. Household debt increased by $219 billion (1.6%) to $13.51 trillion in the third quarter of 2018.

Furthermore, overall household debt is 21.2% above the post-financial-crisis trough reached during the second quarter of 2013, according to the Quarterly Report on Household Debt and Credit from the Federal Reserve.

“Older borrowers now hold a larger share of total outstanding debt balances, while the shares held by younger borrowers have contracted and shifted toward auto loans and student loans,” said Donghoon Lee, research officer at the Fed. It was the 17^th consecutive quarter with an increase and the total is now $837 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008.

Among other trends from the report are the following:

Housing Debt

• Mortgage originations increased to $445 billion from $437 billion in the second quarter.
• Mortgage delinquencies were roughly flat, with 1.1% of mortgage balances 90 or more days delinquent in the third quarter.

Non-Housing Debt

• Outstanding student loan debt increased by $37 billion and stood at $1.44 trillion as of September 30.
• Auto loan balances increased by $27 billion to $1.27 trillion in 2018Q3.
• Credit card balances rose by $15 billion to $844 billion.

Delinquencies, Collection Accounts, and Credit Inquiries

• Mortgage delinquency transition rates increased slightly with about 1.2% of current balances transitioning into delinquency.
• The number of credit inquiries within the past six months--an indicator of consumer credit demand--increased slightly--but remains among the lowest seen in the history of the data.

The mortgage marketplace is doing a better job of serving once underserved borrowers and has been effective at  mitigating risk from that effort, according to a review of The Department of Housing and Urban Development's Annual Report to Congress Regarding the Financial Status of the FHA Mutual Mortgage Insurance Fund.
"The continued growth of the Capital Reserve Ratio is welcome news,  and indicates that FHA is effectively serving its core mission in the single-family market, providing safe and affordable credit to qualified first time and low-and moderate-income borrowers, while appropriately managing its risk and protecting taxpayers, said Robert Broeksmit, president and CEO of the Mortgage Bankers Association.

An increase in the MMIF capital ratio to 2.76 percent in fiscal year 2018 means the program has proceeded. To move past the above the 2 percent statutory minimum. In addition, the forward book of continued to perform well, with significant increases in key indicators such as serious delinquencies, early payment defaults, claims payments, and loss rates.

"We are glad to see that FHA is closely monitoring the increasing risk in the forward portfolio, indicated by rising debt-to-income ratios, declining credit scores, and the increasing use of downpayment assistance programs,” said Broeksmit. “While current FHA delinquencies are quite low, it is prudent to keep an eye on these trends to ensure the program does not face undue challenges if, and when, the economy and job market cool.”

Nonetheless, it was not a perfect report; Reverse mortgages  were a source of concern. The HECM program remains a drain on the fund, continuing a trend that MBA has identified as cause of angst. “Reverse mortgages are an important financial tool that, if used properly, can allow the growing number of retirees to age in place,” said Broeksmit. “MBA applauds the recent steps FHA has taken to stabilize and improve the HECM program, and policymakers should continue considering ways to insulate the forward program from the volatility in the reverse program."

Mortgage Guaranty Insurance Corp. has made its products available through an integration with Ellie Mae’s platform.

Customers can place orders for MGIC Rates, Delegated MI, Non-Delegated MI, and Contract Underwriting through Ellie Mae's Total Quality Loan Program. It’s designed to equip customers with the capability to streamline rate quote and order processes through automation monitor key data changes, alert users of when to re-order a rate quote or MI certificate and drive faster processing times.  Also, the new service offers increased visibility into order history and helps to ensure that data is accurate, organized and securely transmitted.

"TQL has been part of our workflow to help drive efficiency in our loan processing for years. We… believe it will be a valuable part of our loan process going forward," says Eric Webb, assistant vice president underwriting at Churchill Mortgage Corp.

"Lenders nationwide continue to seek new opportunities for mitigating costly errors and driving revenue through automation,” said Margaret Crowley, vice president of marketing and Customer Experience at MGIC.

Losetheagent.com has developed a peer-to-peer real estate market, with access to mortgage professionals.

The site includes marketing tools that assist the homeowner in selling their property without real estate agents, saving thousands of dollars in commissions, according to the company.

All free of charge, the premium program allows sellers to advertise a property or land for sale through a streamlined listing process. By simply entering the address, the site’s proprietary algorithm surveys available or properties that have closed within the immediate vicinity and timeframe and recommends a price based on that information. The seller can choose to accept or adjust the price and is then prompted through each step of entering the property’s information through the easy-to-use interface.

Users have access to title companies, mortgage brokers and lenders with a key stroke or two. An important component of the no-fee platform, buyers have the option of submitting a copy of their mortgage pre-qualification documents for review. The LoseTheAgent.com team vets the pre-qualification, and the buyer receives an identification number that can be entered for potential property discounts and preferred appointment times.

“LoseTheAgent.com empowers property owners to successfully sell their home. Our innovative platform gives the seller all of the tools that they need from pricing recommendations and buyer screening to open house scheduling and the option for videos, marketing templates and more,” said Bill McLeod, president of LoseTheAgent.com. “Our platform will help increase the efficiency of the real estate transaction in general and potentially save tens of thousands of dollars per transaction in commissions.”

LoseTheAgent.com bills itself as having the potential to return $6.3 billion of potential commissions back to consumers.