Monthly archives: May, 2021

Index Reports Modest Gains for Housing Markets in Q4

first_img in Daily Dose, Featured, Market Studies, News About Author: Brian Honea Index Reports Modest Gains for Housing Markets in Q4 Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Tagged with: Employment Home Prices Housing Market NAHB NAHB/LMI Single-Family Housing Permits U.S. Economy Previous: Ocwen CEO Expects Company’s Earnings To Take Q4 Hit After Ratings Downgrade Next: Agency Has Recovered $1.48 Billion In Funds From TARP-Related Crimes The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Index Reports Modest Gains for Housing Markets in Q4 February 5, 2015 1,242 Views The latest National Association of Homebuilders/First American Leading Markets Index (NAHB/LMI) released Thursday found that markets in 63 out of 351 metropolitan areas nationwide (about 18 percent) matched or exceeded their normal levels of economic and housing activity in Q4 2014, according to an announcement from NAHB.The index ticked slightly upward in Q4 to .90, one point higher than Q3’s revised figure of .89. The number of markets at or above their normal levels in Q4 increased from 60 in the previous quarter and from 52 in the same quarter a year earlier.”The markets are improving at a consistent pace,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Missouri. “A growing economy and rising consumer confidence should help drive the release of pent-up demand in 2015.”The LMI uses three indicators to determine a market’s proximity to normal: single-family housing permits, home prices, and employment. Permits and prices are compared with the national averages from 2000 to 2003, while employment is compared with 2007 numbers. A score of one means the market is on the same level as the last normal period, or base period; above one means the market is above its base, and a score below one means the market has not quite reached the levels of its last normal period.”The U.S. level of .90 means the U.S. economic and housing market is 90 percent of the way back to normal using the same base levels,” said David Crowe, Chief Economist for NAHB.Out of major metros, the one with the top LMI rating in Q4 was Baton Rouge, Louisiana at 1.41, meaning it is 41 percent above its last normal market level. Austin, Texas; Honolulu, Hawaii; Houston, Texas; and Oklahoma City had the second through fifth best LMI levels, respectively. Some smaller metros registered LMI ratings of greater than 2.0 for Q4, led by Midland and Odessa, Texas; Grand Forks, North Dakota; Bismarck, North Dakota; and Casper, Wyoming. A rating of 2.0 or more means the market is more than double its strength prior to the recession.”More than 80 percent of all metros saw their Leading Markets Index increase or hold steady over the quarter, a strong indicator that the overall housing market is making headway,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company, which co-sponsors the LMI report.The indicator that was most recovered in Q4 was home prices, with an index value of 1.31, meaning prices are 31 percent higher than their early 2000s averages. Employment rated at .95 in the index, meaning that the labor market nationwide is 95 percent back to its 2007 level. The index found that the housing permit measure is the weakest of the three indicators in Q4 with a rating of .44. Only 22 out of 351 markets have returned to their levels of their early 2000s single-family housing permit activity.”Markets in energy regions have recovered the fastest and are the ones better now than at their last normal levels,” Crowe said. “The markets with the longest road left are those that collapsed the most and have not had the employment recovery enjoyed by the country as a whole. The bottom two quintiles of markets are heavily concentrated in the industrial Midwest and the Sand states of California, Nevada, Arizona and Florida. All are improving but have a longer distance to cover.” Employment Home Prices Housing Market NAHB NAHB/LMI Single-Family Housing Permits U.S. Economy 2015-02-05 Brian Honea Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Demand Propels Home Prices Upward 2 days agolast_img read more

The Skies Ahead

first_img Demand Propels Home Prices Upward 2 days ago About Author: David Wharton Previous: The 5 Most Competitive Markets Next: State of the Foreclosure Market Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Sign up for DS News Daily David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] The Best Markets For Residential Property Investors 2 days ago Share Save The Skies Ahead Home / Daily Dose / The Skies Ahead Data Provider Black Knight to Acquire Top of Mind 2 days ago December 12, 2018 1,654 Views Housing Market 2018-12-12 David Whartoncenter_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News, Servicing The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Housing Market “It’s an interesting and dynamic time in the industry, for a whole host of reasons,” said Brian O’Reilly, President and Managing Director of The Collingwood Group. “You have market volatility to the likes of which you haven’t seen in some time. Refinances have largely gone away. The distressed-servicing market is substantially smaller than what it was only a few short years ago. The business is in a period of real change.” Many Americans are also facing significant economic pressure as consumer debt levels continue to climb alongside interest rates. There is good news in the mix, however. “The silver lining for millions of Americans is that their homes continue to be a source of wealththat can help them strengthen their balance sheets,” said Mike Rawls, EVP of Servicing, Mr. Cooper. “However, we need to help homeowners become smarter about managing their balance sheet to avoid a repeat of the last down cycle.”Echoing the topic of DS News’ August cover story, “The Big Short,” Tendayi Kapfidze, Chief Economist, Lending Tree, said that 2018 was largely defined by the twin factors of decreasing affordability and insufficient housing inventory. Will that remain the case in 2019? “Affordability will remain a challenge as rates are likely to rise further and prices register more modest increases,” Kapfidze said. “Inventory has been improving, in part because affordability is weakening demand. Delinquencies are unlikely to increase as long as the labor market remainsrobust, which we expect to be the case. Low delinquencies will also be supported by home prices, which we expect to continue rising, though at a slower pace.”In early November, CoreLogic’s Home Price Index Report forecast that home-price growth was projected to slow 4.7 percent by September 2019. CoreLogic’s data also revealed that 40 percent of younger millennials said they wanted to purchase a home, but 73 percent cited affordability as a barrier to entry. Doug Duncan, SVP and Chief Economist,Fannie Mae, said that there could be some relief ahead in 2019. “One thing that you might notice retrospectively is that 2017 will be recognized as the year at which the pace of price appreciation in housing peaked,” Duncan said.TAXES AND TARIFFS, LEGISLATION, AND REGULATIONThe Trump administration passed its $1.4 trillion tax-reform bill in the final days of 2017. While true perspective on the long-term impact of that bill is likely still months or years down the line, it nevertheless contained severalprovisions that are already touching some corners of the market, including limits on property-tax deductions and tax-break stays for homesellers. “The changes to federal tax law haven’t resulted in a middle-class wave of homebuying activity,” said Rick Sharga, EVP, Carrington.Mortgage Holdings, LLC. “Anecdotally, it appears that the tax reform may have slowed down activity at the $1 million-plus level in high-cost/high-tax states. However, it’s hard to say exactly how much of the slowdown is due to the tax-law changes versus the lack of inventory and escalating prices and interest rates.”Kapfidze said that the clearest 2018 impact from the tax bill was with regard to the increase in interest rates and the sharp contraction in refinance originations. “The higher rates also lower affordability and thus demand, leading to the slowdown in home sales and loss in momentum in home prices,” Kapfidze said. “The bill increases the profitability on the bottom line but its negative effects on industry revenues are much greater, and the bill, in sum, has been detrimental in its first year.”The past year also brought the word “tariff” back into the mainstream in a way it hadn’t been for some time, with President Trump implementing trade tariffs—or threatening to do so—against numerous countries. While tariff saber-rattling continues between the U.S. and countries such as China, some of the already imposed tariffs have impacted housing to one degree or another.Kevin Brungardt, CEO, RoundPoint Mortgage Servicing Corporation, called the September tariffs “a double whammy on homebuilders” coming on the heels of earlier tariffs imposed on Canadian lumber.“The tariffs on raw goods act as a tax on both the homebuilder and homebuyer and that has the impact of further driving up home prices and discouraging builders from pursuing entry-level, affordable projects.”Brungardt said that, barring any change in policy, these issues should only be exacerbated in 2019, “when the Chinese tariffs (which the National Association of Homebuilders estimate includes at least $10 billion worth of housing related goods) increase from 20 percent to 25 percent.”Brungardt further points out that the industry doesn’t just have to worry about the immediate impact of the tariffs but also the potential blowback or retaliation from affected nations. He warned that a trade war could create “further instability at a time when mortgage volumes are down and companies are already facing a challenging road ahead in 2019.”Assuming trade tensions do escalate in 2019, Brungardt said to expect an uptick in mergers and acquisitions activity as companies see margins shrink.In May 2018, President Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act into law, with the bill designed to evolve and streamline regulations put in place by the 2010 Dodd-Frank Act. At the time, Sen. Mike Crapo (R-Idaho), Chairman of the Senate Banking Committee, said in a statement, “This step toward rightsizing regulation will allow local banks and credit unions to focus more on lending, in turn propelling economic growth and creating  jobs on Main Street and in our communities.”One of the primary changes was increasing the threshold for enhanced regulatory standards from $50 billion to $250 billion, a change designed to exempt some smaller and mid-sized banks from regulations that would still apply to the larger banking entities. The affected regulations pertain to capital and liquidity rules, risk-management standards, and stress-testing requirements, among other things. Unsurprisingly, there was a lot in the bill, but as with the tax bill, some elements of its larger impact on the industry will need to be evaluated from further down the road.During an interview earlier this year, Pam Perdue, EVP, Chief Regulatory Officer, Continuity, told DS News, “There are still many unanswered questions about how these rollbacks will work in practice.” “People have to modify their lending systems. They’ve got to modify the compliance-management systems inside their organizations. Whether those are manually done or done with technology, there’s a lot of work to do.”“If you throw a stone into a pond, the ripples don’t occur across the entire pond immediately— they move over time,” O’Reilly said. “That’s what’s happening in the regulatory arena. You have a change in mindset in the context of regulatory enforcement burdens, where the sentiment of the federal government seems to be less aggressive than has been the case under the previous administration. However, that is not translating yet into lesser regulatory costs.”“The law’s 50-odd mortgage-related provisions are a significant challenge for compliance teams to adjust to,” said RoundPoint’s Brungardt, “and some estimates show that average compliance costs nearly doubled between Q1 2018 and Q2 2018. We’ve seen some relief in Q3, and as companies adjust to the new reality, we hope to see some lasting improvement in the regulatory space, which will improve affordability.”INNOVATION AND PREPARATIONSeveral of the experts DS News spoke to suggested that this period of relative calm and stability is a perfect time for companies to innovate and prepare for any economic downturns that may eventually arrive.“Over the last few years, we’ve started to see more and more technologies introduced for home-loan originations, but innovation on the servicing side is still lacking,” Rawls said. He told DS News that servicers should work to ensure a better customer experience throughout every step of the homeownership journey.“Homeowners can benefit from more selfservice options and greater education to provide them with the information they need when they want it,” Rawls continued. “For our industry to be successful, we need to meet customers where they want to be met, whether it’s on the web or their mobile device, over the phone, or even face-toface through a web call.”“The biggest changes occurring in the mortgage industry are taking place in the technology space, with scores of new startups and entrepreneurs attacking many long-standing challenges,” Brungardt said. That being the case, what will the industry look like a decade down the road, and how should companies be working to build and prepare for that future now?“The customer will be in the driver’s seat in a way we’ve never been before,” Brungardt said. “This will mean more transparent access to every step of the mortgage process and a clear understanding of the timeline from application to close.”Brungardt anticipates this will mean a significant decrease in how long it takes to originate a loan, possibly shrinking the timeline from weeks or months to days or even hours. Brungardt predicts that the servicing side will also see dramatic improvements and optimizations thanks to advanced analytics and data to better anticipate and assist troubled borrowers in avoiding default or foreclosure.“Lenders/servicers need to be investing in technology now,” Brungardt said, “even though budgets are tight, to ensure they are ready for the next upswing in the market cycle.”O’Reilly spotlights the GSEs, Fannie Mae and Freddie Mac, as leading examples of how to approach innovation in this era. “The GSEs are doing a great job at increasing their focus on developing tools and solutions that will help improve the customer experience and mitigate risks.”O’Reilly, who served as Director, Automated Underwriting Product and Risk Management Solutions at Fannie Mae from 2002–2007, said that the culture at the GSEs had changed significantly since that time, especially when it comes to their approach to innovation.“The GSEs during that period were criticized—and to some degree, rightly so—for what has been characterized as a ‘take-it-or-leave-it’ approach to innovation,” O’Reilly said. “They would deliver a solution to the marketplace, but there was very little collaboration with the industry during the process of the development of that innovation.”O’Reilly says that the GSEs’ mindset has shifted significantly in recent years. “Both Fannie and Freddie are engaged in a strongly collaborative environment, and you’re seeing the benefits of that. When we talk to our clients—both large banks and nonbanks—they tell us it’s night and day in terms of the level of collaboration and this notion of test and learn and fail quickly. Fannie and Freddie are working to undertake large initiatives in bite-size chunks,” he said.That, O’Reilly said, is a lesson every servicer can take to heart and put into action. “As the rules of the road have become more well defined, we can start investing more in upgrades to the customer experience,” Rawls said. “The mortgage process can be complicated and intimidating, and now is the time to think of new ways to approach customer pain points and give them better tools, technology, and products for a more seamless, simpler experience.”GETTING YOUR BEARINGS FOR 2019A session conducted during the National Association of Realtors’ 2018 Realtors Conference & Expo suggested that the five most critical issues facing the industry in 2019 included: 1) interest rates and the economy, 2) politics and political uncertainty, 3) housing affordability, 4) generational change/ demographics, and 5) e-commerce and logistics.“Mortgage is cyclical,” said Beth Northrop-Day, VP and Assistant General Counsel, US Bank. “We’re in a phase right now where companies are still originating, homebuying is occurring, and people are successfully paying their mortgages—all fantastic things. If I were to hazard a guess, I suspect that by mid to late 2019, or perhaps early 2020, we’ll start to see some changes. As an industry, we’ve made so many incredible changes—we are proactive and are working hand-in-hand with borrowers, investors, and regulators.”Looking back at the industry’s past decade of crisis and recovery, Kim Greaves, EVP, Citizens Bank, told DS News, that most of the “bad players” who precipitated that crises are no longer in the mix, and the industry as a whole is much better prepared for any future downturns than they were before the last one. “However, we will never take our eye off collections, loss mitigation, and default,” Greaves said. ”That must always remain a strong core competency.”Scott Brinkley, CEO, a360, Inc., said, “Interest rates are rising, and consumer debts are at an all-time high. On the other side of the coin, the economy overall is very healthy. Employment is low. Home-price values are appreciating year-over-year. We have some conflicting data points, but we think that 2018 is going to be a bottoming year for delinquencies.”If delinquencies do take an upward turn in 2019, however, what would that look like assuming there is no larger precipitating event such as another housing bubble or financial crisis?“We don’t anticipate anything broad-based,” Brinkley said. “It will all be tied to some major microeconomic event like a recession. Unless that happens, you will not see any material uptake in volume, but you will see a natural increase in delinquencies because the housing market is growing.”Sharga said that “the consensus among most economists is that the U.S. is likely to enter a mild recession in late 2019 or early 2020. If that’s the case, we’d be likely to see an increase in delinquency rates about six months after the recession starts, and foreclosure activity nine to 12 months later.”Even though he doesn’t see a recession in the near future, Fannie Mae’s Doug Duncan suggests an economic slowdown is coming.“We expect economic growth to slow in 2019, and we expect that the Fed will tighten at least a couple of times during 2019,” Duncan said. “Interest rates are unlikely to fall but, depending on the pace to which the economy slows, the Fed may or may not achieve its current dot plot, which suggests four increases next year.”Duncan added that Fannie Mae is forecasting only two interest-rate hikes in 2019, owing to an anticipated economic slowdown.The results of the midterm elections will also help shape the industry’s path going forward, but O’Reilly cautioned that even if Republicans are able to continue advancing an agenda that focuseson streamlining and scaling back regulations, the industry might still encounter unexpected complications—a case of “be careful what you wish for.”If the federal government continues to scale back on the regulatory front but the states begin to move in the opposite direction, O’Reilly warned that “instead of one regulator with a heavy hand, you could have many, all applying rules in different ways, which would then cause risk-management and compliance costs to skyrocket.”As for where home prices are headed in 2019, Duncan says that you can already see some of the trendlines forming. “In every market, the high-end component has seen increased inventory, longer days on the market for existing homes, and slowdowns in prices. In some of those markets, you may see declines in prices if the rate rises increase, and in some cases, because of the high cost of housing, some businesses are moving jobs out of those markets.”Duncan added that some of these markets are also beginning to feel the bite of limitations on the deductibility of state and local taxes. In some markets, this could lead to price declines.On the lower end of those markets, however, demand and price appreciation remain strong, so average price appreciation across all the markets is expected to remain positive nationally for the next few years.“Then, depending on what happens with the economic activity and the Fed tightening, that pace of price appreciation may go negative in 2021 or 2022,” Duncan said. “However, there’s a lot of things that could happen between now and then.”“The slowdown in housing, and particularly home prices, is the best thing that could have happened, and hopefully it continues in 2019,” Kapfidze said. “When we look at previous housing cycles, continued acceleration in home sales and prices would have to come at the cost of increasing leverage—this is how we got in trouble before.”“For 2019, servicers should continue to refine their organizations, controls, cost structures, and management and staff structures,” Greaves said. “We believe the trend of consolidation will continue, with some smaller companies going out of business, more servicing on the market, and real opportunities for the players that are positioned correctly. The companies that will benefit will be the ones that have their houses in order.” Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

Mayopoulos Outlines Next Steps

first_img Mayopoulos Outlines Next Steps  Print This Post The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News January 22, 2019 2,347 Views Sign up for DS News Daily Tagged with: Blend Fannie Mae Nima Ghamsari Silicon Valley Tim Mayopolous Related Articles Blend Fannie Mae Nima Ghamsari Silicon Valley Tim Mayopolous 2019-01-22 Radhika Ojha Silicon Valley tech company Blend has announced the appointment of Timothy Mayopoulos as President. The former CEO of Fannie Mae will lead Blend’s go to market and corporate support functions, as well as join the company’s board of directors, the company said. “Tim Mayopoulos is a terrific leader who will help us provide exceptional value to our growing customer base as we scale,” said Nima Ghamsari, CEO, Blend. “I’ve collaborated closely with Tim for over four years, and he believes strongly in technology’s potential to bring simplicity, transparency, and accessibility to the broader consumer finance ecosystem. His deep expertise and passion for transforming consumer lending make him a great fit for our team.”“I’m thrilled to join Blend at a critical point in its growth trajectory and look forward to helping the company continue to drive positive change in consumer finance in the years to come,” said Mayopoulos. “Nima and the Blend team are driving much-needed improvements to the speed, efficiency, and transparency of consumer lending. I am confident that the company’s growth will continue at a remarkable rate.”In addition to Mayopoulos, Blend has expanded its leadership team with the following recent executive hires:Olivia Teich has joined as head of product. In this role, Teich will focus on partnering with consumers and the industry to identify the areas where Blend’s product can make the biggest impact to improve lending. Prior to Blend, Teich held roles leading product at both Dropbox and Jive.Kallol Das has joined as head of engineering. He will focus on expanding Blend’s engineering team, driving quality and efficiency, and partnering with the product team to achieve development goals. Das has held similar executive roles at Path, Salesforce, Amazon, and Invoice2Go.Justin Schuster has joined as head of marketing. Schuster brings a strong background in SaaS, product, marketing communications, and digital marketing, having previously served as Corporate CMO at Acxiom and VP of marketing at LiveRamp.“We’ve added some amazing leaders to our team, positioning the company to scale at an even faster rate and better serve our customers, driving meaningful change in our industry,” Ghamsari said. “This group brings a wealth of experience and skill to Blend’s executive team, and their contributions will be pivotal to achieving our goal of a simpler, more transparent financial services ecosystem.”The appointments follow a record year of growth for Blend’s digital lending platform, which processed more than $230 billion in loan applications in 2018. Now 350 employees, up from just over 200 a year ago, Blend now works with 130+ customers that comprise more than a quarter of the U.S. mortgage market. Share 1Save Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Home / Daily Dose / Mayopoulos Outlines Next Steps Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img About Author: Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: Waters Asks How Financial Industry Is Softening Shutdown Impact Next: Spotlight on Fast-tracking Foreclosure Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

HUD Approves $8.2B Puerto Rico Recovery Plan

first_imgHome / Daily Dose / HUD Approves $8.2B Puerto Rico Recovery Plan Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Ben Carson HOUSING HUD Hurricane Irma Hurricane Maria infrastructure Puerto Rico 2019-03-01 Radhika Ojha Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago Previous: The 10 Most Homebuyer Friendly Markets Next: Ask the Economist with Skylar Olsen About Author: Radhika Ojha Related Articles Servicers Navigate the Post-Pandemic World 2 days ago March 1, 2019 2,348 Views The U.S. Department of Housing and Urban Development (HUD) reaffirmed its commitment to get Puerto Rico back on its feet after the devastation caused by Hurricane Maria in late 2017. The agency approved the island nation’s latest disaster recovery plan as well as the disbursement of $8.2 billion as part of the grant made available to Puerto Rico’s recovery by Congress in 2018. However, this approval comes with tight fiscal controls.“This is an unprecedented investment and since Puerto Rico has a history of fiscal malfeasance, we are putting additional financial controls in place to ensure this disaster recovery money is spent properly,” said HUD Secretary Ben Carson. “With stringent HUD oversight, these dollars should have a real, lasting impact on Puerto Rico and help our fellow citizens who are struggling to recover from these devastating storms.”HUD said that its approval of Puerto Rico’s action plan makes the island nation eligible for Congressionally appropriated disaster relief funds which will be awarded through HUD’s grant programs.The heightened scrutiny of how these funds are spent will include enhanced monitoring of expenses as well as other measures designed to ensure Puerto Rico’s legal and prudent use of the funds, HUD said in a statement.On its part, Puerto Rico has said that it will address the “urgent humanitarian needs” of the island’s residents while “also developing and implementing a transformative recovery.” The amended action plan submitted by the island includes an analysis of early damage estimates and gives details about an initial program design to address the island’s recovery with the first tranche of $1.5 billion that was approved by HUD as well as the additional $8.2 billion.The action plan indicated that the parameters within which the remaining funds would be spent would be outlined in forthcoming federal guidelines, and its proposed uses determined in subsequent action plans.In February 2018, Congress had approved $1.5 billion towards the recovery efforts with an additional $18.5 billion approved in April, which also included funds targeted to reinstating the electric grid and other mitigation activities after the devastation caused by Hurricanes Irma and Maria in 2017. in Daily Dose, Featured, Government, Loss Mitigation, News Tagged with: Ben Carson HOUSING HUD Hurricane Irma Hurricane Maria infrastructure Puerto Rico Subscribe  Print This Post Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Demand Propels Home Prices Upward 2 days ago HUD Approves $8.2B Puerto Rico Recovery Plan The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Hispanic Influence on the Housing Market

first_imgHome / Daily Dose / Hispanic Influence on the Housing Market Related Articles Share 1Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Foreclosure, Market Studies, News The Best Markets For Residential Property Investors 2 days ago Hispanic Influence on the Housing Market Servicers Navigate the Post-Pandemic World 2 days ago 2019-07-15 Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago Hispanics are one of the fastest growing group of homeowners in the U.S., the Wall Street Journal reports. WSJ states that Hispanics are experiencing the largest homeownership gains of any ethnic group in the U.S., bouncing back from a 50-year low in 2015. Data from the U.S. Census Bureau indicates that HIspanic homeownership has increased by 3.3 percentage points since 2015, compared to the overall U.S. homeownership rate increase of 1.3 percentage points since the homeownership rate bottomed out in 2016.The National Association of Hispanic Real Estate Professionals (NAHREP) states that Hispanics accounted for the majority of new U.S. homeowner gains over the past decade, making up nearly 63% of total gains.  “The housing market would look very different today if it weren’t for a tidal wave of Latino home buyers,” Gary Acosta, NAHREP’s co-founder and Chief Executive told WSJ.Despite the increases in homeownership, Hispanic homeowners are still at high risk of foreclosure, especially for those who took advantage of risky loans during the housing crisis. According to Zillow, homes in Hispanic neighborhoods were 2.5 times more likely to be foreclosed upon than homes in white communities between 2007 and 2015, after hispanics and blacks saw significant gains in homeownership as lenders targeted minority buyers with these risky loans, eventually leading to foreclosure. A study from Clever.com revealed the racial disparities among mortgage applicants. According to the study, African-Americans are twice as likely to be denied a mortgage when controlling for income, and African-Americans (105%) and Hispanics (78%) were more likely to use high-cost mortgages to purchase a home.Looking at borrowers by race, it indicated that “mortgage applicants are predominantly white.” Out of the sample of 1.7 million applicants analyzed by Clever.com, more than 1.4 million mortgage applicants were white, compared to 80,442 African Americans, 93,762 Asian Americans, 29,293 American Indians, and 15,645 Native Hawaiians or Pacific Islanders. Demand Propels Home Prices Upward 2 days ago July 15, 2019 1,645 Views About Author: Seth Welborn The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: A New Approach to Affordable Housing Next: HUD Announces Residential Reverse Mortgage Sale  Print This Post Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Sign up for DS News Daily Subscribelast_img read more

REO Activity’s Ups and Downs

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Foreclosure, News REO Activity’s Ups and Downs Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago October 17, 2019 3,560 Views U.S. foreclosure activity in Q3 2019 was 49% below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1 2006 and Q3 2007—the 12th consecutive quarter where U.S. foreclosure activity has registered below the pre-recession average. According to the ATTOM Data Solutions Q3 2019 U.S. Foreclosure Market Report, there were a total of 143,105 U.S. properties with foreclosure filings in Q3, down 6% year-over-year.“Foreclosure activity continues to decline across the country, which is a good sign that the housing market and the broader economy remain strong – and that the lending excesses that helped bring down the economy during the Great Recession remain a memory,” said Todd Teta, Chief Product Officer at ATTOM Data Solutions. “This is not to say that everything in the latest foreclosure picture is rosy. Some states have seen their foreclosure rates increase this year, which could cause some concern. But overall, the foreclosure numbers reflect a market in which buyers can afford their homes and lenders remain careful in loaning to home buyers who have little chance of repaying.”Running contrary to the national trend, 14 states posted year-over-year increases in foreclosure starts in Q3 2019, including Montana (up 33%); Georgia (up 32%); Washington (up 16%); Louisiana (up 15%); and Michigan (up 12%).By state, the highest foreclosure rates were in Delaware (one in every 415 housing units with a foreclosure filing); New Jersey (one in every 436); Maryland (one in every 500); Illinois (one in every 517); and Florida (one in every 577).By metro, the top two with the highest foreclosure rates were in New Jersey: Atlantic City (one in every 269 housing units with a foreclosure filing) and Trenton (one in every 312).On a national level, despite the reduced foreclosure rates, bank repossessions saw a slight uptick in Q3. Lenders repossessed 34,432 U.S. properties through REO in Q3 2019, up 6% from the previous quarter but down 33% from a year ago. However, 16 states posted quarter-over-quarter decreases in REO activity in Q3 2019, including Maryland (down 37%); Tennessee (down 19%); Delaware (down 16%); New Jersey (down 13%); and Arizona (down 11%). Tagged with: default Foreclosure REO Previous: Natural Disaster Meets Digital Disruption Next: The Bright Side of Residential Investment Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.  Print This Post The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / REO Activity’s Ups and Downscenter_img Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe default Foreclosure REO 2019-10-17 Seth Welborn Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Seth Welborn Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

Eastern U.S. Dominating Delinquency Declines

first_img Servicers Navigate the Post-Pandemic World 2 days ago Related Articles default Delinquencies Foreclosure 2020-02-03 Seth Welborn Tagged with: default Delinquencies Foreclosure About Author: Seth Welborn Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Eastern U.S. Dominating Delinquency Declines Servicers Navigate the Post-Pandemic World 2 days ago Delinquencies fell by 3.75% month-over-month in December, according to the latest Black Knight Mortgage Monitor report, while the foreclosure rates fell 1.57%. Year-over-year, delinquencies declined by over 12%.Additionally, Black Knight found that there are now 2.05M loans in some stage of delinquency, including active foreclosures down 236K from the same time last year and the lowest year-end volume since the turn of the century. The strongest declines were primarily in the east and southern portions of the country and in areas heavily impacted by the 2017 and 2018 hurricane seasons.Southern states including Mississippi, Louisiana, Alabama, and Arkansas held some of the largest volumes of non-current loans in the country. As of December 2019, Mississippi holds the highest volume at 9.99%, though this is a month-over-month decline from November’s 10.44%, and a 0.93% decline year-over-year.All top five states in non-current percentages have seen marked declines over the year, with the biggest decline in Louisiana, where the non-current percentage fell by 6.81% from December 2018.The lowest non-current percentages, meanwhile, remain concentrated on and around the East Coast, with Colorado still holding the lowest rate at 1.74%, down from November’s rate of 1.81%. Behind Colorado falls Washington (1.77%), Oregon (1.84%), Idaho (1.91%), and California (2.01%).Black Knights report also covered home price growth. Growth fell from nearly 7% in early 2018 to 3.8% in August 2019, but it gained almost a full percentage point over the last four months of 2019—reaching 4.7% to close the year.“Still, even with home price growth accelerating, today’s low-interest-rate environment has made home affordability the best it’s been since early 2018. At that time, the housing market was red-hot, with national home price growth at 6.6% and climbing—before rising rates and tightening affordability triggered a pullback in growth rates,” said Black Knight Data & Analytics President Ben Graboske. “That’s not the case today. Despite the average home price increasing by nearly $13,000 from just over a year ago, the monthly mortgage payment required to buy that same home has actually dropped by 10% over that same span due to falling interest rates.” Previous: Why GSE Advisor Represents an ‘Important Milestone’ Next: FEMA Funding $2M Wildfire Mitigation Program in Californiacenter_img in Daily Dose, Featured, Foreclosure, Market Studies, News February 3, 2020 1,437 Views Eastern U.S. Dominating Delinquency Declines Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Demand Propels Home Prices Upward 2 days ago  Print This Post Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

Fannie Mae and Freddie Mac: Getting From Here to There

first_img Related Articles April 21, 2020 2,943 Views About Author: Phil Britt Tagged with: Conservatorship Cover Fannie Mae Freddie Mac Sign up for DS News Daily Share Save Conservatorship Cover Fannie Mae Freddie Mac 2020-04-21 Seth Welborn Fannie Mae and Freddie Mac: Getting From Here to There Editor’s note: This feature originally appeared in the April issue of DS NewsFannie Mae and Freddie Mac, the two government-sponsored entities (GSEs) that back the majority of the country’s mortgage market, went into conservatorship in September of 2008 as they faced default of their loan portfolios. The conservatorship was initially thought to be a short-term arrangement to enable the GSEs to get back on their feet, and there were some efforts in Congress to unwind the positions within five years, but now there is little chance they will exit conservatorship before the November election. In fact, the status of the GSEs may remain largely unchanged for some time beyond that, though opinions of when and how they would leave conservatorship are widely varied.Further delaying any resolution is the COVID-19 pandemic, which by mid-March had the government focusing all efforts on trying to minimize the effects of the disease on the nation’s health and economy. The various stimulus efforts were being undertaken with health and economy as the only consideration, so after-effects on any government plans not directly related, like moving the GSEs out of conservatorship, were pushed far to the back.Before the pandemic became an issue, even FHA Director Mark Calabria has questioned the current financial status of the GSEs, telling the Credit Union National Association Government Affairs Conference last month: “The lack of capital at Fannie and Freddie jeopardizes their important mission. That is why we are focused on strengthening Fannie and Freddie.”The goal is to strengthen them enough to bring them out of conservatorship, according to Calabrio. That prospect remains a hot topic of discussion among everyone from the pundits to the President, questions remain: will this goal truly come to fruition? And if so, what are the obstacles that remain along the way? DS News looks at the history—and future—of the GSEs.A Storied HistoryThough much of the recent attention on them has been centered on their time since the turn of the century, Fannie Mae and Freddie Mac’s story begins long before that.A 1938 amendment to the National Housing Act initially established Fannie Mae as a government agency, according to the FHFA’s Inspector General office. Fannie Mae’s mandate was to act as a secondary mortgage market facility that could purchase, hold, and sell FHA-insured loans, creating liquidity in the mortgage market and thereby providing lenders with cash to fund new home loans. Fannie Mae started buying Veterans Administration-insured loans in 1948, leading to a rapid expansion of the business, according to The American Mortgage in Historical and International Context by Richard K. Green and Susan M. Wachter.The Federal National Mortgage Association Charter Act of 1954 (Charter Act) transformed Fannie Mae from a government agency into a public-private, mixed ownership corporation and exempted the GSE form state and local taxes, with the exception of property taxes.Fannie Mae was reorganized through the Housing and Urban Development Act of 1968 from a mixed ownership corporation to a for-profit, shareholder-owned company, a change that also removed the GSE from the federal budget. As a result, Fannie Mae began funding its operations through the stock and bond markets.Freddie Mac came into existence as a result of the 1970 Emergency Home Finance Act. Freddie Mac’s initial charge was to help savings and loans manage the challenges associated with interest rate risk. Most thrifts had made low-rate, fixed-interest-rate loans during the previous period of steady rates and were ill-equipped to handle the interest rate increases that had spiked from 6-10% at the end of the decade.The Federal Home Loan Banks initially capitalized Freddie Mac with a $100 million contribution, enabling the GSE to start buying long-term mortgages from thrifts, which, in turn, cut their interest rate risk while also enabling them to make additional mortgages.Though they had the same basic purpose—to provide lenders with a secondary market for conventional mortgages, Fannie Mae and Freddie Mac used different business strategies during the 1970s and 1980s, according to the FHFA Inspector General.As a result of differing strategies, Fannie Mae and Freddie Mac had different outcomes in the late 1970s and early 1980s. Fannie Mae suffered from the sharp rises in the interest rates in the late 1970s and early 1980s because the long-term, lower rate mortgages were funded by shorter-term, higher cost obligations like deposits. But since it sold off its interest rate risk, Freddie Mac was relatively unaffected by the increase in interest rates.To help Fannie Mae, the federal government provided forbearance and tax benefits.The government, through the 1989 Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), reorganized Freddie Mac’s corporate structure to more closely match Fannie Mae’s.The 1992 Federal Housing Enterprises Financial Safety and Soundness Act amended the GSE charters, requiring more of a dedication to supporting financing of low-income housing, resulting in aggressive in purchasing Alt-A mortgages, and private-label MBS collateralized by subprime mortgages, as foreclosures and losses increased, GSE borrowing costs went up and equity declined, resulting in the FHFA placing the GSEs into conservatorship.The Cause of ConservatorshipThough their problems escalated sharply from 2006 until they went into conservatorship, the reasons for the government takeover go back far before the event actually happened, said Edward Pinto, Resident Fellow and the Director of the AEI Housing Center at the American Enterprise Institute (AEI).In 1992, Congress started pushing for increased homeownership, and for several years there was a loosening of credit and lending standards, resulting in a lending boom that extended through 2005. The more relaxed mortgage underwriting rules for Alt-A and subprime mortgages heightened the liability for the GSEs just as the mortgage market was softening, said Stephen Ornstein, Co-Leader of Alston & Bird’s consumer financial services team.Both GSEs had several times more in outstanding loans than their capital could support and spent the first year in conservatorship deferring the hits to their capital, Pinto said.The conservatorship was a necessary evil that helped to stabilize an unstable mortgage infrastructure, said Rick Sharga, President and CEO of CJ Patrick Co. “It helped the market recover and ensured there was liquidity. On the downside, it increased the government footprint in the mortgage market, making it very hard for private capital to come back in.”As the conservator, the FHFA maintained broad authority over the GSEs. But rather than managing every aspect of their operations, the FHFA reconstituted the boards and charged them with enforcing normal corporate governance and procedures.But in the first year of the conservatorship, the delinquencies continued, further extending the GSE financial troubles, Pinto said.Under the 2014 strategic conservatorship plan, FHFA outlined three goals:Maintain safe and sound operations while fostering a liquid, competitive, and resilient housing finance marketReducing taxpayer risk by increasing the amount of private capital in the mortgage marketBuilding a new single-family securitization infrastructure for use by the GSEs and adaptable for use by other secondary market participants“Conservatorship, and any associated cost-of-funds advantage related thereto, is also augmented by the carve-outs for QM and ATR through the safe-harbors created for the GSEs,” said Tim Rood, Head of Industry Relations at SitusAMC and the Chairman of The Collingwood Group, a SitusAMC company. “The Safe Harbor provisions have allowed the GSEs to issue loans to borrowers whose loans would not otherwise qualify as QM, at a lower price point than private capital. During this same time, lending through GNMA-backed programs has also greatly expanded. The result is a much larger subsidy to borrowers through these government programs than would otherwise exist in the private markets.”The benefit of the conservatorship is that it froze the market and allowed the GSEs to rebuild their capital, said Steve Horne, CEO of Insight One. However, stricter underwriting guidelines also made it more difficult for many consumers to obtain mortgages. Many potential borrowers could not meet the 43% debt-to-income ratio. While lenders could still make loans that didn’t meet those guidelines, it would mean keeping loans in their own portfolio, which lenders are reticent to do.“The politicians understand this issue which is why solving for the GSEs has been difficult to get momentum around,” Rood said. “It is also why consumer advocacy groups are pushing for an average prime offering rate (APOR) test for QM in the hopes that limiting the spread allowed for a QM loan will force lenders to keep risk premiums down for the loans that enjoy QM status today but would not under the existing non-GSE definitions (ex. 43% DTI being exceeded)”Seller-servicer guidelines for appraisals changed immediately with the conservatorship, said Bill Garber, Director of Government and External Relations for the Appraisal Institute. Previously, the same entity could make the loan and appraise the property. Under the new rules, a separate third party had to be used or there had to be a solid separation of the appraisal and lending processes if done with the same company.“There weren’t enough checks and balances before,” Garber said.The End in Sight?When they went into conservatorship, few expected them to be there nearly a dozen years later. And even those calling for conservatorship to end soon, don’t expect any changes until some time after this fall’s election.How quickly conservatorship will end remains a matter of debate. There’s no real consensus on the best way to end the conservatorship, Ornstein said. “They’ve been shock absorbers for risk in the mortgage market. If they leave conservatorship, there’s no assurance that the private market will step in.”Allen Price, Senior Vice President at BSI Financial, said that any plans for emergence from conservatorship are likely to be put on the back burner until some time after the current coronavirus pandemic has passed.The pandemic is going to have such a significant impact to the economy, that preparedness in not only planning for such health issues but in all phases of government, will be given a much more through examination, even if plans were thought to be good previously, according to Price.Even before the pandemic, government organizations seem to be going in different directions. In October of 2019, the Treasury Department and FHFA agreed to allow the GSEs to keep $45 billion in capital to exit conservatorship, but a month later, the FHFA said it would re-propose the capital requirement rules sometime this year.The FHFA wants to ensure that the GSEs are a source of liquidity in an economic downturn and support equitable market access for small lenders, Calabrio said. So the FHFA wants to build their capital, reduce their risk profiles and strengthen the FHFA’s regulatory capabilities.The FHFA plans to have a draft proposal for commentary around April, with a final proposal by the end of the year, meaning the soonest the GSEs could come out of conservatorship would be 2021.Even that scenario is dependent on the outcome of the coming election, said Michael Flynn co-chair of the Mortgage Banking and Financial Services Regulatory Industry Groups at the Buchalter law firm, who previously served as Acting General Counsel of the U.S. Department of Housing and Urban Development, and as General Counsel of Flagstar Bank and PNC Mortgage.“I’ve seen what Calabrio has said and he’s interested in pushing [conservatorship] forward, even if he can’t get the outcome during the current Administration,” Flynn said.If there’s a second Trump administration, the plans to emerge from conservatorship are more likely to move forward after the election, said Clifford Rossi, professor of the practice in finance and executive-in-residence at the University of Maryland’s Robert H. Smith School of Business and former senior risk manager for Fannie Mae and Freddie Mac, If the Democrats win in November, they might look at it a little longer.”Whichever party is in power after the election will want GSEs with a stronger risk governance so that neither Fannie or Freddie goes back to making the risky loans that were responsible, a least in part, for the conservatorship in the first place, Rossi added.“The chance of the GSEs leaving conservatorship any time soon is slim,” Pinto said. “There are a lot of obstacles and not a lot of agreement of how to do it. There needs to be agreement on capital and how the GSEs can de-risk.”Price agreed, adding that many in the industry would be skeptical of the ability to de-risk without very careful government oversight. So he expects any emergence from conservatorship to be delayed until a couple of years after the election.The FHFA has hired Houlihan Loukey, an investment bank and financial services company to develop a plan for the privatization, but any plan is still in its earliest stages.“Houlihan Loukey will aid the FHFA in the development of a capital restoration plan on the heels of a capital framework; you can’t build a plan until you know what the framework is,” Rood said, pointing out that as of early March, the FHFA had yet to publish a new capital standard. “The most likely outcome in a conservatorship exit is that the UST and FHFA will need to amend the PSPAs of Fannie and Freddie to settle outstanding lawsuits with investors and amend the NWS to permanently stop the sweeping of their earnings. The enterprises will continue to be allowed to build capital to the new standard set by the FHFA—consistent with the requirements of conservatorship.”The UST white paper on GSE reform runs the gamut of administrative and legislative reforms, but the preferences and priorities of stakeholders is largely unclear, according to Rood. What is clear is that the administration wants the GSEs to take less risk, to be fairly compensated for the risks they take, and to take risks that are commensurate with their level of capital.Rossi said another possibility to raise capital for the GSEs would be an initial public offering.Measure Twice, Cut OnceSeveral in the industry point to the need for a careful, gradual, well thought out plan before conservatorship would end.“You can’t just unplug them; a lot of things could happen. The chances of getting it wrong are too high,” Horne said.“Will they be capitalized enough and strong enough?”, Flynn asked.Ornstein added that, even if the end of conservatorship is some time off, the GSEs will definitely have a smaller role in the mortgage market of the future. The “qualified mortgage patch,” which exempts GSE-backed loans from meeting all aspects of QM terms, is set to expire in 2021.However, the Mortgage Bankers Association doesn’t want the QM Patch expire without a defined plan for creditworthy borrowers who don’t reach the QM’s 43% debt-to-income ratio.Sharga also expects the GSEs to leave conservatorship, though any changes to how the GSEs operate will need to be done gradually, with much thought and consideration, he said. “The whole trick is to move them out in a way that protects taxpayers and enhances consumer access to credit.”Sharga added: “They will need more oversight than before. They need better controls for credit risk than they had before.”Sharga said he also wants to see a more level playing field for community banks and credit unions with any restructured GSEs.Regulators want to make sure GSEs “aren’t over their skis” when they leave conservatorship, added Garber, who expects the process to move forward once the capital rule is defined.Rossi and several others said that one of the big questions that remains is whether post-conservatorship Fannie and Freddie will offer implied government guarantees.Horne added that leaving conservatorship would likely lead to increased consolidation in the mortgage market.In the unlikely event that there’s no path for the enterprises to build sufficient capital, statutorily they will be required to be taken into receivership, Rood added. This will force the outstanding lawsuits and investors to settle disputes or, if the lawsuits are too much for the entities to bear, face a receivership. He thinks the first scenario is much more likely.“We believe it’s likely that the GSEs will maintain a UST backstop and access to a line-of-credit. The QM patch will likely expire in Q2 of 2021 (following an extension of the patch) and QM will likely be amended in ways that are aimed at luring private capital back into the housing market,” Rood said. “If this happens, the safe-harbor advantage the GSEs experiences today would be removed and greater competition from private players would likely arise.”“In the new age (post-conservatorship), we will see the GSEs and private market compete more directly,” Garber said.Whether the GSEs leave conservatorship entirely or are little changed in the next few years, their status will certainly change. But whether an implied government guarantee will still exist is still a matter of some debate. If it still does exist in a new GSE environment, private lenders are unlikely to pick up any slack the GSEs leave as they change.As the GSE environment changes, it also remains to be seen if it will result in tighter or looser credit, which would have a direct effect on the housing market, said Rohit Gupta, President and CEO of Genworth Mortgage Insurance. He also pointed out that any changes should be made when the market is strong. “A down cycle is a bad time to do reform.”“They need to have complete transparency across the mortgage market,” Gupta added. “It’s important to have a functioning and transparent mortgage market. Any reform needs to provide better [protections] to ensure a stable financial system.” The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Fannie Mae and Freddie Mac: Getting From Here to There The Best Markets For Residential Property Investors 2 days ago  Print This Postcenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Phil Britt started covering mortgages and other financial services matters for a suburban Chicago newspaper in the mid-1980s before joining Savings Institutions magazine in 1992. When the publication moved its offices to Washington, D.C., in 1993, he started his own editorial services room and continued to cover mortgages, other financial services subjects, and technology for a variety of websites and publications. Demand Propels Home Prices Upward 2 days ago Previous: Mortgage Credit Tightens Slightly Next: GSEs Will Purchase Qualified Loans in Forbearance The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

FHFA Extends Foreclosure and Eviction Moratorium

first_img“FHFA will continue to monitor the coronavirus situation and update policies as needed,” the agency said in a release. “To understand the protections and assistance the government is offering people having trouble paying their mortgage, please visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website at cfpb.gov/housing​.​” The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save in Daily Dose, Featured, Government, Market Studies, News Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Foreclosure moratorium Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: DS5: Optimism in Mortgage Servicing Next: Calm Before the Storm: Q1 Delinquency Less than 4% About Author: Seth Welborn FHFA Extends Foreclosure and Eviction Moratorium Foreclosure moratorium 2020-06-17 Seth Welborn Subscribe The Best Markets For Residential Property Investors 2 days ago  Print This Post Today, to help borrowers and renters who are at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend their single-family moratorium on foreclosures and evictions until at least August 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The current moratorium was set to expire on June 30.”To protect borrowers and renters during the pandemic we are extending the Enterprises’ foreclosure and eviction moratorium. During this national health emergency no one should worry about losing their home,” said Director Mark Calabria.The Agency announced earlier this month that it is extending several loan origination flexibilities currently offered by Fannie Mae and Freddie Mac (the Enterprises) designed to help borrowers during the COVID-19 national emergency, including the authority to purchase mortgages in forbearance, until at least July 31. Other flexibilities that have been extended include:Alternative appraisals on purchase and rate term refinance loansAlternative methods for verifying employment before loan closingExpanding the use of power of attorney and remote online notarizations to assist with loan closingsThe FHFA previously announced that Fannie Mae and Freddie Mac would be able to buy loans in forbearance, with note dates on or before June 30, as long as they are delivered by August 31 and have missed just one mortgage payment. Additionally, the agency will be re-proposing the updated minimum financial eligibility requirements for the Enterprises.“FHFA has determined that it is prudent to work with the Enterprises to reassess and re-propose these requirements, including incorporating lessons learned from the evolving COVID-19 national emergency,” the Agency said in a release. Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / FHFA Extends Foreclosure and Eviction Moratorium June 17, 2020 3,811 Views Sign up for DS News Daily Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Market Still at Risk of Future ‘Zombie’ Property Wave

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Market Studies, News Home / Daily Dose / Market Still at Risk of Future ‘Zombie’ Property Wave Sign up for DS News Daily Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Market Still at Risk of Future ‘Zombie’ Property Wave Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago 2021-02-25 Christina Hughes Babb February 25, 2021 1,342 Views  Print This Post Previous: Do New PSPA Limits Undermine Efforts to Combat Discrimination? Next: Factors That Defined Housing in 2020 Among the country’s stock of some 99 million residential properties, abandoned or vacant foreclosed-upon homes (or “zombie” properties, as they have come to be known) so far in Q1 2021 represented just one out of every 14,825. That is down from 13,074 in 2020 Q4, according to the property analysts at ATTOM Data Solutions.“These days, you can walk through most neighborhoods in the United States and not spot a single zombie foreclosure. That continues a remarkable turnaround from the last recession when many communities were dotted by abandoned properties,” said Todd Teta, Chief Product Officer with ATTOM. “The trend does remain on thin ice because foreclosures are temporarily on hold, and the market is still at risk of another wave of zombie properties when the moratorium is lifted, depending on the general state of the broader economy. For the moment, though, zombie properties remain pretty much a non-issue in the vast majority of the country.”Northeastern and midwestern states continue to see the highest number of zombie properties in the first quarter, with New York at 2,064; Florida with 926, Illinois with 759, Ohio at 633, and New Jersey with 363 zombies. In the West, California tops the list but only saw 130 zombie properties statewide.“It’s good to see the number of zombie foreclosures continue to fall,” said Rick Sharga, EVP at RealtyTrac, an ATTOM Data Solutions company. “But states with vacant properties caught in long judicial foreclosure processes should take steps to accelerate the disposition of those properties. This would reduce the health risks of having homes vacant during a pandemic, and provide much-needed affordable housing inventory to prospective homebuyers.”In a nutshell, first-quarter 2021 data shows that empty homes at some point in the foreclosure process continue to disappear as the housing market remains strong and the federal government keeps trying to protect homeowners from an economic slide stemming from the worldwide COVID-19 pandemic.The detailed report on the state of zombie properties can be read on ATTOM’s website. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save About Author: Christina Hughes Babblast_img read more