Industry Leader Calls CFPB Deputy Director’s Comments ‘Irresponsible’

first_img Tagged with: CFPB Mortgage Bankers The Five Star Institute Home / Featured / Industry Leader Calls CFPB Deputy Director’s Comments ‘Irresponsible’ Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago  Print This Post CFPB Mortgage Bankers The Five Star Institute 2014-02-21 Krista Franks Brock Data Provider Black Knight to Acquire Top of Mind 2 days ago Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. Related Articles Previous: VirPack Upgrades Document Management System Next: Fannie Mae Dividend Payments to Exceed Treasury Draws After Consumer Financial Protection Bureau (CFPB) Deputy Director Steven Antonakes decried mortgage servicers for not doing enough to mend the industry after the recent housing crisis, one industry leader called his comments “inflammatory and without benefit to the audience.”Ed Delgado, president and CEO of the Five Star Institute, believes the deputy director’s remarks are not only ill-timed but also counterproductive.Speaking before an audience of Mortgage Bankers Association members Wednesday, Antonakes said he is “deeply disappointed by the lack of progress the mortgage servicing industry has made,” and added that “too many customers continue to receive erratic and unacceptable treatment.”Near the end of his speech, Antonakes said, “My message to you is a tough one. I don’t expect a standing ovation when I leave.”However, Delgado suggests Antonakes’ message was more than simply unpopular with its direct audience. Since the speaking engagement, Antonakes’ remarks have been picked up and reiterated by media outlets across the nation, sending a message to consumers that the industry has not improved and their financial futures are not secure. Not all agree.Sending this message “at a time when collaboration and cooperation are critical to the industry—not just to servicers but also to homeowners who need to have confidence in those responsible for managing their mortgages—is simply irresponsible—with little merit,” Delgado said.In spite of Antonakes’ “deep disappointment,” the industry has completed more than 6.8 million loan modifications since 2007, according to HOPE NOW, a private-sector industry alliance. Foreclosures have retreated drastically; REOs are back at pre-crisis levels; and the market is stabilizing.Furthermore, while Antonakes points to the 4,900 mortgage complaints the CFPB receives each month, this amount is “diminutive when placed in context with the nearly 80 million mortgages currently in service across the U.S. market,” Delgado said. In fact, this translates to complaints on 0.006 percent of mortgages.”To chastise an audience of mortgage servicers without conceding their enormous efforts as well as the impact of federal government programs is both inaccurate and negligent,” Delgado said. Referencing Rep. Jeb Hensarling’s (R-Texas) popular quote about Dodd-Frank’s Volckner Rule, Delgado said “given the remarks of Mr. Antonakes, it appears that the CFPB is a solution in search of a problem.”Disclosure: The Five Star Institute is the parent company of DS News and DSNews.com. The views expressed here do not reflect those of the editorial staff. Industry Leader Calls CFPB Deputy Director’s Comments ‘Irresponsible’ About Author: Krista Franks Brockcenter_img Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 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 Subscribe in Featured, Government, Headlines, News The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago February 21, 2014 789 Views The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Fannie Mae: Serious Delinquency Rate Hits Lowest Level in Six Years

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brian Honea Previous: Judge’s Ruling Paves Way For Class-Action Suit against JPMorgan Chase Next: Judge Dismisses Investors’ Claims in GSE Profits Lawsuits Share Save Subscribe The nation’s serious delinquency rate on single-family mortgage loans for August was the lowest it has been in six years, according to Fannie Mae’s August 2014 Monthly Summary released earlier this week.Fannie Mae reported the serious delinquency rate for August to be 1.99 percent, which is its lowest level since October 2008 – a month after Fannie Mae’s conservatorship under the Federal Housing Finance Agency (FHFA) began. The August rate was down slightly from the 2.00 percent that was reported for July and down from 2.61 percent that was reported in August 2013. The serious delinquency rate reached its peak of 5.59 percent in February 2010.Since the serious delinquency rate has fallen by 0.62 percentage points in the last year, analysts say the rate could fall below the “normal” level of 1.0 percent by 2016, although declines have come at a slower pace in recent months.Fannie Mae reported that 9.365 permanent loan modifications were completed in August, making a total of 88,231 loan modifications year-to-date through August 31, 2014.Seriously delinquent mortgage loans are defined as those that are either three months or more behind on their payments or are in foreclosure.The report also stated that in August, Fannie Mae’s Book of Business decreased at a compound annualized rate of 4.0 percent while the GSE’s Gross Mortgage Portfolio declined at a compound annualized rate of 16.7 percent for the month. Fannie Mae Loan Modification Serious Delinquency Rate Seriously Delinquent Mortgages 2014-10-01 Brian Honea Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Fannie Mae: Serious Delinquency Rate Hits Lowest Level in Six Years Home / Daily Dose / Fannie Mae: Serious Delinquency Rate Hits Lowest Level in Six Years 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 agocenter_img Tagged with: Fannie Mae Loan Modification Serious Delinquency Rate Seriously Delinquent Mortgages Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily 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. in Daily Dose, Featured, Foreclosure, Government, Headlines, Loss Mitigation, News Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post October 1, 2014 1,534 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Servicers, Regulators Partner to Create CFPB Complaint Tracking Report

first_img About Author: Brian Honea The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Servicers, Regulators Partner to Create CFPB Complaint Tracking Report Black Knight Financial Services (BKFS) is working to create a prototype of an industry-level report to provide detailed information on the consumer complaints the Consumer Financial Protection Bureau (CFPB) receives, promoting greater understanding for regulators and servicers.The CFPB Complaint Tracking Report, produced by Black Knight, will incorporate data contributed by both servicers and CFPB. Dori Daganhardt, VP of product marketing and market strategy at Black Knight, said she expects the report to help level the playing field in terms of transparency and education. She said the servicers and regulators will work together to determine the level of granularity contained in the report.”We’re very excited to be able to partner with the industry to create this kind of report and provide this type of information,” she said.The rate at which the Bureau receives complaints has been surging upward almost since day one. When CFPB opened in July 2011, it began receiving consumer complaints about credit cards and eventually expanded to include other aspects of financing such as mortgages, bank accounts, consumer loans, debt collection, and money transfers. The number of complaints received nearly doubled from 2012 (91,000) to 2013 (163,700), and as of December 31, 2013, the Bureau reported having received 310,000 complaints in its first two and a half years of existence.”Consumer complaints have become central to the work of this agency. They enable us to listen to, and amplify, the concerns of any American who wants to be heard,” CFPB Director Richard Cordray said in a release earlier this year. “They are also our compass. They make a difference by informing our work and helping us identify and prioritize problems for potential action.”Approximately 37 percent of those complaints (about 60,000) were related to mortgages, making that the top complaint category (debt collection was second with 19 percent), according to CFPB. Most of the mortgage complaints concerned problems that stemmed from consumers’ inability to pay, such as loan modifications or foreclosures.The idea for a CFPB Complaint Tracking Report was born from Black Knight’s recent participation in a working subcommittee of the National Mortgage Servicing Association. Mortgage servicers requested that Black Knight produce such a report to include CFPB- and servicer-contributed data.Such a report would benefit those involved in two main ways, according to Black Knight: first, providing a way to for servicers to benchmark their management performance relative to the rest of the mortgage industry. Servicers will be able to check their book of business against the rest of the industry (which remains anonymous) by using aggregate charts and graphs.The second benefit the report provides is standardizing the reporting to CFPB to facilitate an improvised and unbiased understanding of all the complaint cases CFPB receives.This report is not just for industry players, however. Consumers also stand to benefit from a report of this type, according to Black Knight.”I think it’s a great opportunity for another level of consumer education,” Daganhardt said. “I think once there’s a better understanding of what processes and procedures are followed when it comes to consumer complaints, to be able to provide a more holistic look into that will be beneficial not only for the industry and the regulators but for the consumers themselves. The individual consumer has their story, and they know their specific experience. I think for them to be able to see a more holistic view of what’s happening with similar types of complaints will be helpful.”Providing the context around the consumer’s complaint will help paint a more accurate picture of the case and the players involved, according to Bob Caruso, EVP of servicing, sales, and strategy at Servicelink.”If Company A has more complaints than Company B, at the surface level, that means Company A must have something wrong with it.” Caruso said. “If company A is bigger than company B and they both have the same complaint level, that would mean Company A should have more complaints, but relative to the size of the company.”Also, the report will provide a more specific definition of exactly what constitutes a complaint, which will better help servicers assist consumers with their grievances, Caruso said.”We want to be able to define, is it a real complaint, what’s the complaint about, is it within our control as a servicer, and if it is, what are we doing about those kinds of things,” he said.Daganhardt said it’s early in the process of gathering data for the report, but she hopes to get 80 percent of the market represented.”I’m encouraged by the committees we’ve had,” she said. “We’ve socialized the report template, if you will, in several different forms, and we’ve had a lot of positive feedback. It seems like the industry wants to be able to have this more holistic view. I’m very hopeful that we’ll get responses fairly quickly. We already have the first cut of the layout of what contributed data we’d like to have, but we’ll have to finalize that with everyone, obviously. We know how to do this and we’ve done this many times before, so all of those ingredients are a recipe for success.” Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Previous: Distressed Homes Discount Averages 37 Percent in September Next: Report: Mortgage Fraud Risk Increases 3.2 Percent Black Knight Financial Services CFPB Complaint Tracking Report Consumer Financial Protection Bureau 2014-10-28 Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago 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: Black Knight Financial Services CFPB Complaint Tracking Report Consumer Financial Protection Bureau Related Articlescenter_img Demand Propels Home Prices Upward 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago October 28, 2014 958 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers, Regulators Partner to Create CFPB Complaint Tracking Report Subscribelast_img read more

Mississippi Has Highest Delinquent Mortgage Rate Again

first_imgHome / Daily Dose / Mississippi Has Highest Delinquent Mortgage Rate Again Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Market Studies, News Sign up for DS News Daily Just as it did in November, Mississippi led all states with the highest percentage of non-current mortgages and serious delinquent mortgages in December, according to data released recently as part of Black Knight Financial Services’ December 2014 “First Look” at mortgage data released Friday.Mississippi’s percentage of non-current mortgages, which are those 30 days or more overdue or in foreclosure, was 14.18 percent – a decline from the 14.88 percent the state reported for November. The national mortgage delinquency rate declined by 7 percent down to 5.6 percent in December after experiencing its biggest increase in six years a month earlier.The non-current mortgage percentage dropped by 8.3 percent year-over-year in the Magnolia State in December. Mississippi’s non-current rate of 14.18 percent in December which still way below the state’s peak of 22.85 percent, attained in October 2005. Just seven months earlier, in March 2005, Mississippi’s non-current mortgage rate fell to its low of 9.60 percent.New Jersey retained the second-highest non-current mortgage rate in December, 11.9 percent, despite experiencing a decline from 12.41 percent the previous month and an 18 percent drop year-over-year.  Louisiana was third in December, as it had been in November, with 11.06 percent. New York and Rhode Island retained their fourth and fifth spots in December which they held in November with delinquency rates of 10.39 and 10.16 percent, respectively. The delinquency rate declined both month-over-month and year-over-year in each of the top five states.North Dakota was once again the state with the lowest mortgage delinquency rate for December, at 2.38 percent. The second through fifth lowest delinquency rates in December, respectively, were in South Dakota (3.54 percent), Alaska (3.56 percent), Colorado (3.58 percent), and Montana (3.83 percent).Mississippi also had the nation’s highest serious delinquency rate (90 days or more overdue or in foreclosure) for December with 5.30 percent of mortgages in the state in serious delinquency, a slight decline from the 5.39 percent the state reported for November. Mississippi’s serious delinquency rate declined by 2.04 percent year-over-year in December. The state’s December serious delinquency rate was still well below its peak of 9.9 percent, reported in in December 2005. Mississippi’s low for serious delinquency rate was 2.74 percent, achieved in March 2005. Data Provider Black Knight to Acquire Top of Mind 2 days ago 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. January 23, 2015 1,108 Views Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Black Knight Financial Services Delinquent Mortgage Loans Mississippi Seriously Delinquent Mortgage Loans 2015-01-23 Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Black Knight Financial Services Delinquent Mortgage Loans Mississippi Seriously Delinquent Mortgage Loans Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Previous: Leading Economic Indicators Advance for Fourth Month in a Row Next: Report: Investors Move Toward Potential Ocwen Lawsuit Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Mississippi Has Highest Delinquent Mortgage Rate Again Share Save Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Senators Introduce Amendment to Prevent Use of Fast Track to Weaken Dodd-Frank

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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.  Print This Post The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Previous: Georgia Lawmaker Proposes Bill to Make CFPB Accountable to Congress Next: DS News Webcast: Thursday 5/21/2015 The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Brian Honea Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articlescenter_img in Daily Dose, Featured, Government, News Four Democratic U.S. Senators, Elizabeth Warren (Massachusetts), Jeff Merkley (Oregon), Richard Blumenthal (Connecticut), and Tammy Baldwin (Wisconsin), have introduced an amendment aimed at preventing future administrations from weakening financial regulations, according to an announcement on Warren’s website.The amendment would prevent the use of Fast Track authority to pass a trade deal that would stop lawmakers from tearing away at the Dodd-Frank Act, which Republicans have been attempting to do virtually since it was enacted five years ago.”This President supports financial reform – but he cannot stop the next President from caving to the big banks in a future trade deal,” Warren said. “With European officials, Republicans, and giant banks on both sides of the Atlantic pushing hard to undermine financial regulation in the upcoming TTIP agreement, this amendment is the best way to ensure that future Presidents can’t use this fast track bill to undermine Dodd-Frank.”Democrats have vowed to protect Dodd-Frank and oppose any legislation that they believe would reduce the controversial Wall Street reform and consumer protection law.”It’s no secret that big banks and many European nations are pushing hard to relax financial regulations in upcoming trade negotiations,” Merkley said. “This amendment is imperative to making sure that TPA doesn’t become the ‘fast track’ to chopping away at Dodd-Frank and jettisoning key consumer protections.”Click here to read the full text of the amendment.Warren, the chief architect of the Consumer Financial Protection Bureau which was created from Dodd-Frank, just last week introduced the Bailout Prevention Act, a bipartisan bill co-sponsored by Senator David Vitter (R-Louisiana) that would limit the Federal Reserve’s lending authority and end “too big to fail.”On Tuesday, the same day as the amendment was introduced, Warren, along with Joe Manchin (D-West Virginia) proposed the Trade Transparency Act, which would require the president to release the text of any trade agreement at least 60 days before Congress grants Fast Track authority for approval of the agreement.”The Trade Transparency Act would ensure that the public, experts, and the press can engage in meaningful debate over the terms of trade deals before Congress reduces its ability to shape, amend, or block those deals,” Warren said. “Before Congress ties its hands on trade deals, the American people should be allowed to see for themselves whether these agreements are good for them.”The full text of the Trade Transparency Act can be accessed by clicking here. The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily May 20, 2015 849 Views Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Dodd-Frank Financial Regulation Reform Senator Elizabeth Warren Senators Introduce Amendment to Prevent Use of Fast Track to Weaken Dodd-Frank Dodd-Frank Financial Regulation Reform Senator Elizabeth Warren 2015-05-20 Brian Honea Home / Daily Dose / Senators Introduce Amendment to Prevent Use of Fast Track to Weaken Dodd-Franklast_img read more

Home Equity Jumps to $726 Billion

first_imgHome / Daily Dose / Home Equity Jumps to $726 Billion Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: EU Execs Warn Against Dodd-Frank Changes Next: Report: Time to Update the Mortgage Servicing Industry Share Save  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Home equity has increased by $227 billion in the third quarter of 2016—a jump of 3.1 percent over Q2, according to recent data from CoreLogic. Year over year, equity rose by a total of $726 billion, or 10.8 percent.The most equity growth occurred on the West Coast. While the average homeowner saw equity rise by about $13,000, those in California, Washington, and Oregon had increases between $25,000 and $30,000.“There was wide geographic variation with homeowners in California, Oregon, and Washington gaining an average of at least $25,000 in home equity wealth,” said Dr. Frank Nothaft, Chief Economist for CoreLogic, “while owners in Alaska, North Dakota, and Connecticut had small declines, on average.”The San Francisco metro area had the highest percentage of positive-equity properties, with 99.4 percent.Positive home equity is more likely with properties priced about $200,000, according to CoreLogic’s data, where 96 percent of homes are in the positive. Only 90 percent of those under $200,000 have positive equity.Rising refinances and home prices have likely played a role in the recent uptick of equity across the nation, according to CoreLogic’s CEO and President Anand Nallathambi.“Price appreciation is the main ingredient for home equity wealth creation, and home prices rose 5.8 percent in the year ending September 2016 according to the CoreLogic Home Price Index,” Nallathambi said. “Paydown of principal is the second key component of equity building. Many homeowners have refinanced into shorter-term loans, such as a 15-year loan, and by doing so, they have significantly fewer mortgage payments and are able to build equity wealth faster.”CoreLogic’s data showed the number of homeowners with negative equity decreased in Q3 2016, too. Nearly 400,000 borrowers moved out of negative equity—bringing the percentage of homes with positive equity to 93.7 percent across the country.By the end of Q3, the national aggregate value of negative equity was $282 billion, a drop of $2.1 billion over the quarter and $25 billion year over year. In total, there were 3.2 million properties with negative equity—a decrease of 10.7 percent since Q2 2016 and 24.1 percent year over year.The highest percentage of negative equity properties was found in Nevada, with 14.2 percent, followed by Florida (12.5 percent) and Illinois (10.6 percent.) The Miami, Florida market had 17 percent of its mortgage properties with negative equity.To see the full CoreLogic Q3 Equity Report, visit CoreLogic.com. February 7, 2017 1,131 Views Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago 2017-02-07 Phil Banker About Author: Aly J. Yale Home Equity Jumps to $726 Billion Related Articlescenter_img in Daily Dose, Featured, Headlines, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Aly J. Yale is a freelance writer and editor based in Fort Worth, Texas. She has worked for various newspapers, magazines, and publications across the nation, including The Dallas Morning News and Addison Magazine. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more. Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

What’s Keeping Foreclosures at Bay?

first_img Share Save Demand Propels Home Prices Upward 2 days ago Tagged with: Cape Cod Foreclosure Previous: KeyBank Partners with BlackKnight, Becomes EnterpriseClient Next: LoanCare Renews Black Knight Contract  Print This Post The tiny state of Massachusetts, particularly around Cape Cod, could be a solid microcosm for the state of foreclosures in late 2017. A recent report by the Cape Cod Times found that a sellers’ market on the island has driven foreclosure activity down for the first time in four years.According to the Boston-based Warren Group, foreclosure petitions in June dropped 20 percent compared to the year earlier. In Barnstable County, home of Cape Cod, petitions dropped 11 percent in the first half of 2017, compared to the first half of 2016. Statewide, petitions filed through June and were down 12.6 percent compared to a year ago.These numbers could be the offshoot of a market in high demand and with high sales prices. According to the Cape Cod and the Islands Association of Realtors, the median price of single-family homes hit $400,000 on Cape Cod. That’s up from $383,000 a year earlier, although down from May’s $417,000.Still, sales are moving quickly, creating a high-octane seller’s market that naturally circumvents foreclosure petitions: houses are selling so fast, owners are able to offload distressed properties without having to go to the courts, the Times reported.While petitions on Cape Cod in 2017 are not at the record lows they hit in 2013, they are, according to the Times, still far lower than their 2010 peak. It turns out, until now, 2013 was the only post-recession year when foreclosure petitions went down. The difference is that in 2013, the market was still depressed and banks had already gobbled up a lot of distressed properties.Timothy Warren Jr., CEO of the Warren Group, told the Times that Barnstable County still has plenty of foreclosures on the books, but the Warren Group also found that foreclosure auctions dropped on both a state and local level by 18 percent. However, the filing of foreclosure deeds was up statewide nearly 7 percent in the state and up 300 percent on the Cape‒‒ a sign, the Times wrote, “that the backlog of auctions was continuing to be resolved.”One of the reasons distressed properties are attractive, the article stated, was that on the Cape in particular, homes that would otherwise be foreclosed are essentially move-in ready. Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He’s been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing. Related Articles Cape Cod Foreclosure 2017-08-11 Scott Morgan Home / Daily Dose / What’s Keeping Foreclosures at Bay? August 11, 2017 1,667 Views Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Scott Morgan Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, News, REO, Secondary Market Servicers Navigate the Post-Pandemic World 2 days ago What’s Keeping Foreclosures at Bay? Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

The Factors Impacting Real Estate Trends

first_imgHome / Daily Dose / The Factors Impacting Real Estate Trends The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Kristina Brewer  Print This Post Demand Propels Home Prices Upward 2 days ago Share 1Save July 21, 2018 2,911 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Editor’s Note: This feature originally appeared in the July issue of DS News.This month, DS News sat down with Dr. Lynn Fisher to discuss the housing trends impacting the market. Fisher focuses her research on examining affordable housing, home building, and mortgages. Before joining American Enterprise Institute (AEI) in April, Fisher was VP of Research and Economics and the Executive Director of the Research Institute for Housing America at the MBA, and on the faculty of Washington State University, the Massachusetts Institute of Technology (MIT), and the University of North Carolina. At MIT, she was director of the Housing Affordability Initiative in the Center for Real Estate. She has been published in several academic journals, including the American Economic Journal: Economic Policy, The Journal of Urban Economics, Real Estate Economics, and The Journal of Real Estate Finance and Economics. Fisher has three degrees from Pennsylvania State University: a doctorate in business administration with a concentration in real estate finance, a master’s in business administration, and a bachelor’s in international politics.Congratulations on your new role at AEI. One market indicator that AEI is known for is the National Mortgage Risk Index (NMRI)—can you share with our readers what the NMRI calculates and what it is currently forecasting for the market?NMRI calculates the average expected stressed default rate for newly originated agency loans based on debt-to-income ratios (DTIs), combined loan-to-value (LTV) ratio, borrower credit score, loan term, and purpose.The stressed default rate reflects the performance of loans originated in 2007 with the same characteristics. This measure shows that credit has been expanding over the past five years. Federal Housing Administration (FHA)-insured loans in particular—which are largely provided to first-time homebuyers and involve considerable risk layering—have increased in risk by 6 percentage points over this time in terms of averaged stressed default rate. The NMRI shows that if we have another stress event, like the one from 2007, more than 27 percent of FHA-insured loans would be expected to default.The riskiness of loans securitized by Fannie Mae has also risen notably in the months following the decision in mid-2017 to allow DTIs over 45 percent without compensating factors. We have seen a recent 1 percentage point jump in Fannie’s NMRI driven by the fact that their share of newly originated loans with DTIs over 45 rose to more than 19 percent in January, up from just 6 percent of loans in September 2017. In mid-March, Fannie adjusted course and implemented an update to Desktop Underwriter to reduce risk layering. In the coming months, we will be able to track how effective the policy adjustment was in moderating risk.Because inventories for sale are so low, any increase in the provision of leverage by the market—even if loans appear to be well-underwritten—serves to push home prices even higher, worsening the affordability problem.Are there actions the industry can take to alleviate the inventory constraint?Regarding low inventories of homes for sale, there is no easy fix, since potential home sellers are typically also prospective home buyers. If, as prospective buyers, households don’t believe that they can buy what they want for a reasonable price, they won’t put their home on the market in the first place, choking inventory. It will take time to add enough new homes to sufficiently expand the sales inventory and break out of this cycle.As a result, our data shows that total home sales are decelerating at the national level. The combination of new and existing home sales increased by 9 percent in 2015 and 10 percent in 2016 before slowing to a pace of just 5 percent growth in 2017. According to the National Association of Realtors, the inventory of existing homes for sale has fallen to historic lows, and many forecasters expect growth in existing home sales to slow even further this year, perhaps remaining about flat relative to 2017 due to a lack of inventory. This means that purchase volumes will remain fairly flat for lenders but for the bump in volume they will see from rising home prices.How do these trends compare to what we have seen historically?Historically, credit policy tends to lean into house price booms, expanding credit and exacerbating price increases on the upstroke. This time is no different and credit policy is allowing prices to grow faster than incomes. The pricing correction, when it comes, could be large, and borrowers with high DTIs and high loan-to-value ratio mortgages will have less ability to withstand even a mild recession. Tax reform and increases in government spending have recently juiced the economy past sustainable levels, increasing the likelihood of a recession in about two years’ time. Mortgage professionals need to remain vigilant that they are not relying solely on continued house price growth as the basis of their expectations about future loan performance.What can we expect to see in the housing market as we move into the latter half of 2018?If the credit box continues to expand as it did in 2017, then there is no doubt that home prices will continue to climb for the rest of 2018. Real wage growth is also expected to add demand to the housing market by the end of the year. In combination, these trends will keep the pressure on prices without providing much relief in terms of affordability. Only expanding our housing stock will provide more affordable housing. However, the accumulation of local government restrictions on building will continue to impede the creative expansion of our housing supply, even in the presence of record-high prices.How can lenders provide products to their borrowers to help insulate them from market fluctuations?Lenders should seek to make their borrowers resilient and able to adapt to a changing economy and housing market. Faster amortizing mortgages—for example, a 20-year versus a 30-year loan— help households build equity faster and increase the possibility that borrowers can ride out a downturn in prices. At the same time, no individual or lender can hold back the rising tide of credit availability and the pressure that competition puts on your business. As an industry, lenders need to be speaking out and ask that government agencies hold the line on credit policy. It can be done. The Rural Housing Services, for example, has an NMRI score that is about flat over the last five years.Ultimately, our housing supply is created locally. Lenders should also be part of their local process for regulating and planning for housing. They should educate local officials and help them find ways to expand supply. Although surprising to some, we don’t need subsidies to build “affordable” housing. We simply need to allow market actors, by right, to build economical housing in much greater quantities than we currently permit. Even incremental density increases—up-zoning from single family to duplexes or four-unit to eight-unit buildings—can make a big difference for the ability of a community to accommodate households at a wide range of prices and rents. Related Articles Kristina Brewer is a graduate of the University of North Texas (UNT), where she received her Bachelor of Arts in English with a concentration in rhetoric and writing and a minor in global marketing. During this time, she served as Director of Philanthropy in the national women’s fraternity Zeta Tau Alpha, of which she is an alumna. Her passion for philanthropy continued after university when she was an intern at Keep Denton Beautiful, a local partner of Keep America Beautiful, where she drove membership, organized events, and led social media campaigns. Brewer honed her writing at the North Texas Daily, UNT’s student-run newspaper where she wrote about faculty, mentorship, and student life. Brewer also previously worked at Optimus Business Plans where she helped start-ups create funding proposals, risk assessments, and management plans. You can reach her at [email protected] in Daily Dose, Featured, News, Print Features Credit Score Fannie Mae FHA Homes HOUSING Inventory Loan Term loans LTV mortgage 2018-07-21 Radhika Ojhacenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Factors Impacting Real Estate Trends Tagged with: Credit Score Fannie Mae FHA Homes HOUSING Inventory Loan Term loans LTV mortgage Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Homeowners and the Buying Experience Next: Has Streamlining Benefited Loan Mods? The Best Markets For Residential Property Investors 2 days agolast_img read more

The Appraisal Institute Names New President

first_imgHome / Featured / The Appraisal Institute Names New President Demand Propels Home Prices Upward 2 days ago Tagged with: James L. Murrett Jefferson L. Sherman Stephen S. Wagner The Appraisal Institute VP Rodman Schley Servicers Navigate the Post-Pandemic World 2 days ago January 4, 2019 1,542 Views in Featured, Headlines, News James L. Murrett Jefferson L. Sherman Stephen S. Wagner The Appraisal Institute VP Rodman Schley 2019-01-04 Donna Joseph Data Provider Black Knight to Acquire Top of Mind 2 days ago Stephen S. Wagner, MAI, SRA, AI-GRS, of West Lafayette, Indiana, begins his one-year term as president of the Appraisal Institute this month. The Appraisal Institute is a Chicago-based professional association of real estate appraisers with more than 18,000 professionals in nearly 50 countries. The Appraisal Institute’s other elected officers for 2019 are president-elect Jefferson L. Sherman, MAI, AI-GRS, of Highland Heights, Ohio; VP Rodman Schley, MAI, SRA, of Arvada, Colorado; and Immediate Past President James L. Murrett, MAI, SRA, of Hamburg, New York.In the coming year, the Appraisal Institute’s officers and board of directors will focus on helping appraisers expand their business opportunities, seeking to modernize the appraisal regulatory structure, focusing on helping residential appraisers and expanding the organization’s body of knowledge.“I look forward to helping lead our organization during this critical time in its history,” Wagner said. “Valuation professionals have the potential for a bright future, and the Appraisal Institute welcomes the opportunity to lead the way.” Wagner has served on the Appraisal Institute Board of Directors and as chair of the Finance Committee and vice chair of the Professional Standards and Guidance Committee. He is a past chair of the Demonstration Report Writing Panel, has served on the Admissions Designations and Qualifications Committee. He has also been involved in the development of the General review courses and two Capstone case studies. He also teaches general qualifying education and advanced-level courses and seminars for the Appraisal Institute. Additionally, Wagner has served in chapter roles, including as president, VP, secretary, and treasurer of the Hoosier State Chapter. Wagner is a senior appraiser in the appraisal firm of Terzo & Bologna, Inc., in Indianapolis. Subscribe The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] Related Articles The Appraisal Institute Names New President Previous: Primary Residential Mortgage Unveils Succession Plans Next: Trends in Millennial Homeownership Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Sherman has served nationally on the Board of Directors (2000-02), Finance Committee (chair in 2018 and vice chair in 2002), Nominating Committee (2002), Education Committee (2010-13), International Relations Committee (2016) and Strategic Planning Committee (2017). He has served nearly continuously on the Region V committee since 1993, including many years as its parliamentarian. Sherman also has served in chapter roles, including twice as an Appraisal Institute chapter president in Ohio, and has worked on two successful chapter merger teams. Sherman is principal of Sherman-Andrzejczyk Group, Inc., in Willoughby Hills, Ohio.Schley has served nationally on the Appraisal Institute Board of Directors as Region II vice chair, and as a member of the Strategic Planning Committee and the Governance Structure Project Team. He previously served on the National Nominating Committee. He attended AI’s annual Leadership Development and Advisory Council conference as a participant (2013-15), and was selected as a discussion leader (2016), vice chair (2017) and chair (2018). Schley also has served in chapter roles, including as president of the Colorado Chapter. In 2002, he founded Denver-based Commercial Valuation Consultants, Inc., which was acquired by national appraisal firm BBG in 2016.Murrett has served on the Appraisal Institute’s national board of directors and strategic planning committee and as chair of the Finance Committee, in addition to chapter roles, including as president of the Upstate New York Chapter. He also has been treasurer and a member of the board of directors of the International Center for Valuation Certification, an affiliate of the Appraisal Institute. Murrett is executive managing director, compliance and quality assurance, at Colliers International Valuation & Advisory Services, based in Hamburg, New York. Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily About Author: Donna Josephlast_img read more

Capitalizing on the Single-Family Investment Market

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Capitalizing on the Single-Family Investment Market Home / Daily Dose / Capitalizing on the Single-Family Investment Market Demand Propels Home Prices Upward 2 days ago Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Share Save single family investment 2019-08-14 Mike Albanese  Print This Post Previous: Stocks Fall, Yield Curve Inverts as Recession Fears Grow Next: The Cost of Household Renovations About Author: Mike Albanese August 14, 2019 1,530 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articlescenter_img Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Investors are capitalizing on smaller, single-family homes, as a Forbes report states single-family assets are “viable and a class in and of itself.” The report states that most institutional-level investors began showing interest in single-family rental following the Great Recession, purchasing foreclosed homes. “Recent advances in technology, increasing transparency and the removal of operational difficulties have all given rise to the ability to not only invest in, but also manage properties from afar,” the report said. “All of these factors have combined to help establish [single-family rental] as a large-scale, fully-fledged asset class.”Forbes states that single-family, along with multi-family residences, make up more than 53% of U.S. rentals—approximately 23 million units. An estimated 13 million new rental households are expected to arrive by 2030. “Housing stock isn’t projected to keep up with this demand, meaning there’s great potential for investors who own income properties,” Forbes said.Also contributing to the growth of single-family investments is that many operations difficulties have been removed. The report added that many management services accommodate the needs of larger investors, with property managers providing services at scale. “No longer do they max out at 20 or 30 properties. Instead, many have the resources to oversee hundreds, if not thousands, of properties,” the report said. “This frees up investors to purchase properties that are out of state, and it allows them to invest in more units than they could manage if they were overseeing everything on their own.Increase your knowledge of investment from industry experts at the Single-Family Rental and Investment Roundtable on September 23, during the Five Star Conference and Expo. Leading the roundtable will be CEO of RCN Capital Jeffrey Tesch, and industry insiders will discuss strategies for increasing values of investment, lending tools, the mechanics of investing, improving your ROI, and technological innovations. Subject-matter experts from companies such as Bayview Loan Servicing, CoreVest Finance, LendingHome, and more will speak on the evolving world of investment.  The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: single family investment in Daily Dose, Featured, Investment, News Subscribelast_img read more