FEMA: Running Out of Funds?

first_imgHome / Daily Dose / FEMA: Running Out of Funds? As the damages of Hurricane Harvey are still being accounted for, the threat of two other tropical storms has the Federal Emergency Management Agency (FEMA) in need of more funding.Hurricane Irma, another category 5 hurricane, is heading towards Florida, with Hurricane Jose following in its path.Florida Sens. Bill Nelson and Marco Rubio wrote in a joint letter to Majority Leader Mitch McConnell and Minority Leader Charles Schumer addressing their concerns about FEMA rapidly running out of funds.”FEMA is scheduled to run out of money by Friday, September 8, just two days before Hurricane Irma is expected to hit Florida,” Sens. Nelson and Rubio wrote. “Unfortunately, the current disaster relief package Congress is considering for Hurricane Harvey doesn’t account for the additional costs FEMA will likely incur as a result of Hurricane Irma.”The letter also noted that even with the Harvey supplemental aid package, FEMA is likely to run out of funds before the end of September.Fannie Mae has taken notice of Hurricane Irma’s incoming effects, releasing Thursday a reminder to homeowners and servicers that mortgage assistance options are available for those impacted by Hurricane Irma.”It is important for those in the path of the storm to focus on their safety as they deal with the potential impact of Hurricane Irma,” said Carlos Perez, SVP and Chief Credit Officer at Fannie Mae. “Fannie Mae and our lending and servicing partners are focused on ensuring assistance is offered to individuals and families in need.”With FEMA expected to run out of money by the time Hurricane Irma hits, there is additional pressure put on Congress to provide more funding this week, Bloomberg reported.“If it’s down to $1 billion or less, then I would say there’s a great concern,” said Elizabeth Zimmerman to Bloomberg, who until January was FEMA’s associate administrator. FEMA HOUSING mortgage 2017-09-07 Nicole Casperson Previous: An Economist’s Perspective on Harvey Next: Seneca Sells Off $51 Billion in MSRs to Wells Fargo Related Articles Share Save  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: FEMA HOUSING mortgage About Author: Nicole Casperson FEMA: Running Out of Funds?center_img Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected] Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe September 7, 2017 1,116 Views Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

Barclays RMBS Suit: Three Strikes and the Order is Out

first_img Previous: Indictment Returned for Foreclosure Auction Rigging Next: Powell’s Appointment to Fed Chair Bodes Well for Housing Market About Author: Rachel Williams The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Barclays Department of Justice mortgage RMBS 2017-11-06 rachelwilliams Data Provider Black Knight to Acquire Top of Mind 2 days ago Barclays RMBS Suit: Three Strikes and the Order is Out Servicers Navigate the Post-Pandemic World 2 days ago Subscribe While the 2008 may seem like it’s far in the review mirror, for Barclays it’s front and center as the bank finds itself still disputing the sale of $31 billion of RMBS during the financial crisis.Most recently, a New York magistrate judge denied a joined discovery order “for the third and final time” in a suit that was first brought in December 2016 by the U.S. Department of Justice (DOJ) against the bank.According to Law360, U.S. Magistrate Judge James Orenstein denied the request as it “ease[d] the litigation burdens of the two sides in the case while taking away rights form third parties that are not in the lawsuit and have not had the chance to weigh in.”This case centers around the allegation that Barclays and two former employees (Paul K. Menefee, who was in charge of mortgage securitizations , and John T. Carroll, who was head trader for subprime loan applications) attested that 36 securitizations packaged rom 2005 to 2007 were thoroughly vetted and performing.However the DOJ’s case is that more than half of the underlying mortgages in these securitizations went on to default resulting in millions of dollars of losses.“Certainly dialogue has picked up with the DOJ over the last quarter or so,” RBS CFO Ewen Stevenson said in October according to Bloomberg. The paper reports that the bank is “optimistic” to settle this fiscal year. However, this won’t be painless, as the bank may have to pay more than $8 billion to close the case.To learn more, click here. Rachel Williams attended Texas Christian University (TCU), where she graduated with Magna Cum Laude with a dual Bachelor of Arts in English and History. Williams is a member of Phi Beta Kappa, widely recognized as the nation’s most prestigious honor society. Subsequent to graduating from TCU, Williams joined the Five Star Institute as an editorial intern, advancing to staff writer, associate editor and is currently the editor in chief and head of corporate communications. She has over a decade of editorial experience with a primary focus on the U.S. residential mortgage industry and financial markets. Williams resides in Dallas, Texas with her husband. She can be reached at [email protected] Home / Daily Dose / Barclays RMBS Suit: Three Strikes and the Order is Out Demand Propels Home Prices Upward 2 days agocenter_img November 6, 2017 2,050 Views The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Barclays Department of Justice mortgage RMBS Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles in Daily Dose, Featured, News, Secondary Market  Print This Post Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Early-Stage Mortgage Delinquencies Dropped in Q4 2017

first_img According to the MBA’s Fourth Quarter 2017 National Delinquency Survey, general downward trends for mortgage delinquencies continued as 2017 wrapped up, even after the impact of a historically damaging hurricane season.”The 30-day delinquency rate actually dropped by 15 basis points in the fourth quarter of 2017, as homeowners affected by Hurricanes Harvey, Irma, and Maria either became current on their payments or moved to later stages of delinquency,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “However, while the earliest-stage delinquency rate dropped, the 60-day and 90-day delinquency rates did increase in the fourth quarter of 2017. Despite the hurricanes and these quarter-over-quarter results, most states are seeing overall mortgage delinquency rates at lower levels than a year ago.”According to the MBA survey, the percentage of loans in the foreclosure process at the end of the fourth quarter was 1.19 percent. This placed Q4 2017 down 34 basis points year-over-year, and down 4 basis points from Q3.Serious delinquency rates, covering loans that are 90 days or more overdue or actively in the process of foreclosure, increased 39 basis points between Q3 and Q4, hitting 2.91 percent for Q4 2017. However, that total is still 22 basis points lower than in Q4 2016.On a seasonally adjusted basis, however, mortgage delinquency rates did increase across all types of loans, including FHA, VA, and conventional.According to the latest Mortgage Monitor Report from the Data and Analytics Division of Black Knight, Inc., mortgage delinquencies hit a 23-month high as 2017 wrapped up, surging by 164,000 year-over-year. However, outside of hurricane-affected areas, Black Knight reported that the national mortgage delinquency rate was actually 11 percent below long-term norms. In these same areas, the total number of past-due or in-foreclosure homes dropped by more than 140,000 as December 2017 wrapped up.Last year also saw the fewest foreclosure starts nationwide of any year since 2000, with the annual total sitting at 649,000. Demand Propels Home Prices Upward 2 days ago Early-Stage Mortgage Delinquencies Dropped in Q4 2017 Demand Propels Home Prices Upward 2 days ago February 12, 2018 2,467 Views Previous: New York Buys Distressed Mortgages to Fight Zombie Homes Next: Quickening Mortgage Innovation in an Industry Slow to Change  Print This Post Foreclosures hurricane harvey Hurricane Irma Hurricane Maria hurricanes MBA Mortgage Delinquencies National Delinquency Survey 2018-02-12 David Wharton Tagged with: Foreclosures hurricane harvey Hurricane Irma Hurricane Maria hurricanes MBA Mortgage Delinquencies National Delinquency Survey Home / Daily Dose / Early-Stage Mortgage Delinquencies Dropped in Q4 2017 Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save About Author: David Wharton Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, Journal, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

Houston Updates Building Codes in Floodplain

first_img Share Save According to the National Hurricane Center, Hurricane Harvey caused $125 billion in damage during its rampage in August 2017. The storm killed damaged 203,000 homes and destroyed 12,700. Eight months after the storm, the recovery continues—and that recovery is about more than just rebuilding, it’s about reexamining the systems in place to ensure future storms take less of a toll.The Texas Tribune reports that the Houston City Council has passed a new ordinance designed to retool and strengthen building codes for areas within the city’s floodplain. The measure skated through with a vote of 9-7 and will go into effect at the beginning of September.The ordinance requires new buildings constructed within the city’s 500-year floodplain to be elevated two feet above the floodplain. That’s an increase over the current one-foot rule, and the new ordinance will also encompass more homes overall. The previous law required an elevation of one foot for homes falling within the 100-year floodplain. Those homes were also required to have flood insurance. In addition to any new homes inside the affected regions, the new ordinance will also apply to any existing homes that are “expanded by 33 percent or more.”The Tribune reports that some city council members voted against the proposal due to concerns that using the 500-year floodplain as a basis for regulation was overreaching. Homes within the 500-year floodplain have been damaged during previous floods, but homes within that floodplain are supposed to face only a 0.2 percent chance of flooding each year, according to the Tribune.“We’ve only looked at 5,000 houses in the 500-year floodplain,” said City Council Member Greg Travis. “There’s not enough data. Nobody here is saying, ‘Don’t do anything,’ we’re saying, ‘Do the right thing.’”Houston Mayor Sylvester Turner, who originally proposed the ordinance, told the Tribune that, “To do nothing is not an option, and this is one time that we must rise above the voices that say do nothing and do what is in the best interest of the people who placed us here. Because frankly, I think the public is no longer tolerant of us not doing anything.”While the months that followed Hurricane Harvey’s landfall unsurprisingly saw some increases in delinquencies within the affected areas, the Texas housing market has weathered the storm remarkably well. The Texas Association of Realtors recently reported that home sales volume and home prices in the Lone Star State reached all-time highs for the third year in a row last year. Whether Houston’s new legislation will prove to be a boon or a boondoggle for the Texas housing market may only be determined after the next inevitable hurricane rolls through. Demand Propels Home Prices Upward 2 days ago Previous: Full Speed Ahead with Mortgage Tech Next: Ranking Reverse Mortgage-Backed Securities Issuance Related Articles Servicers Navigate the Post-Pandemic World 2 days ago 100-year floodplain 500-year floodplain building codes Flood Insurance floods Houston hurricane harvey 2018-04-05 David Wharton 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 About Author: David Wharton April 5, 2018 3,384 Views  Print This Post Subscribecenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Houston Updates Building Codes in Floodplain Tagged with: 100-year floodplain 500-year floodplain building codes Flood Insurance floods Houston hurricane harvey Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, Journal, Loss Mitigation, News Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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] Houston Updates Building Codes in Floodplainlast_img read more

Kraninger: “The Bureau Is Stronger at This Time”

first_img Demand Propels Home Prices Upward 2 days ago Consumer Financial Protection Bureau Consumers First Act House Financial Services Committee Kathy Kraninger mulvaney Waters 2019-03-07 Staff Writer Kraninger: “The Bureau Is Stronger at This Time” Share Save The Best Markets For Residential Property Investors 2 days ago  Print This Post 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 Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Stephanie Bacot is an experienced multimedia writer having created content for print, web, television, and more. She is the past producer of BIZTV, a national television network for businesses and entrepreneurs that reached more than 200,000 professionals. She has more than 15 years’ experience in healthcare marketing and was an advertising exec for Healthcare Journal of Baton Rouge, a trade publication focused on the healthcare industry, as well as the marketing director for a $5 million surgery center. Bacot is a graduate of Louisiana State University with a degree in Marketing and Communications. She resides in Dallas when she’s not pursuing her love of travel. On Thursday, the House Financial Services Committee held a hearing titled, “Putting Consumers First? A SemiAnnual Review of the Consumer Financial Protection Bureau.” While the first panel of this two-panel hearing included testimony by Kathy Kraninger, Director of the Consumer Financial Protection Bureau (CFPB), the second panel focused on a discussion on the draft of legislation titled Consumers First Act that was introduced by Chairwoman Maxine Waters and co-sponsored by 28 members of the committee.The second panel included testimonies from Hilary Shelton, Director & SVP for Advocacy and Policy, National Association for the Advancement of Colored People; Linda Jun, Senior Policy Counsel, Americans for Financial Reform; Jennifer Davis, Government Relations Deputy Director, National Military Family Association; Seth Frontman, Executive Director, Student Borrower Protection Center; and Scott Weltman, Managing Shareholder, Weltman, Weinberg & Reis Co., L.P.A.In her opening statement during the hearing, Chairwoman Maxine Waters highlighted the committee’s concerns with the CFPB. She said that the committee expected “ Kathy Kraninger to answer for Mick Mulvaney” and that the current administration at the CFPB  had “stripped the office of its ability to enforce fair lending, giving lenders a free pass to abuse servicemembers.” She questioned Kraninger, about the agency’s commitment to addressing these concerns. “The Committee does not believe Kraninger is doing enough to foster transparency and accountability or to change issues raised during her predecessor, Mick Mulvaney’s 13-month tenure,” Waters said. Some of the key questions asked of Kraninger by the committee during the hearing focused on consumer complaints, supervision and enforcement of the bureau staff, fair lending enforcement, staff diversity, and spending. On being asked how her relations with the White House influenced her decisions at the bureau, Kraninger maintained her decisions were not influenced and nor had the administration attempted to influence the CFPB. During her recent three month tour, Kraninger said that she had spoken with lenders and consumers “on the ground” and had a strong argument in defense of her initiatives and the Bureau’s ability to protect consumers, stating, “the Bureau is stronger at this time, not weaker” and that it was on the right track. Kraninger defended claims that sufficient efforts were not being made to police predatory lending. During the second panel, Waters said that her legislation, the Consumers First Act, would direct the new CFPB leadership to reverse all “anti-consumer actions” taken under Mulvaney’s leadership, including by resuming the previously authorized supervision of financial firms for Military Lending Act compliance; restoring the supervisory and enforcement powers of the Office of Fair Lending and Equal Opportunity; reestablishing a dedicated student loan office; requiring adequate agency staffing, including for supervision and enforcement; limiting the number of political appointees the CFPB may hire to address allegations that they suppressed the work of dedicated, professional staff; and reinstating the Consumer Advisory Board that was “effectively terminated by Mr. Mulvaney with protections to ensure consumer voices are well represented, and that diversity and inclusion is promoted on the agency’s advisory boards.”See a video of the hearing here.center_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Home / Daily Dose / Kraninger: “The Bureau Is Stronger at This Time” The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Government, News March 7, 2019 1,730 Views Servicers Navigate the Post-Pandemic World 2 days ago About Author: Stephanie Bacot Previous: HUD Offers Foreclosure Relief to Tornado Victims Next: Five Star Global and AM&AA Partnership: Positioned for Growth Tagged with: Consumer Financial Protection Bureau Consumers First Act House Financial Services Committee Kathy Kraninger mulvaney Waterslast_img read more

An Uphill Climb

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe An Uphill Climb Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Rent and Affordability Next: Search for New Wells Fargo CEO Taking Shape Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Tom Lamalfa Tom Lamalfa has spent the past 40 yearsstudying mortgage finance as a researcher,analyst, and consultant. Past interests haveincluded the revenue and expense structuresof the various mortgage production channels,mortgage brokers, the GSEs, and thedomestic economy. He has been a longtimechampion of GSE reform and followslegislative developments in Washington,D.C. LaMalfa’s firm, TSL Consulting,specializes in survey research.  Print This Post About Author: Edward J. Pinto Tagged with: Fannie Mae Freddie Mac American Enterprise Institute (AEI)Resident Fellow Edward J. Pinto is theCo-Director of AEI’s Center on HousingMarkets and Finance. He is currentlyresearching policy options for rebuilding theU.S. housing finance sector and specializesin the effect of government housingpolicies on mortgages, foreclosures, and onthe availability of affordable housing forworking-class families. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Related Articlescenter_img The Best Markets For Residential Property Investors 2 days ago Fannie Mae Freddie Mac 2019-04-16 Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / An Uphill Climb Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago April 16, 2019 2,581 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago In late January, Sen. Mike Crapo, the Chairman of the Senate Banking Committee, released a Housing Reform Outline. The two over-arching goals presented were: make housing more affordable and protect taxpayers. The outline addresses five topics: guarantors, regulation of the guarantors, Ginnie Mae’s (new) role, the requirements necessary to transition to the new system, and a new plan to deal with affordable housing.Before laying out the numerous reasons why the Housing Reform Outline is flawed, a muchabbreviated review of Congress’ past efforts to make housing more affordable and protect taxpayers is in order (spoiler alert: they have all failed).Let’s start in 1954 when Congress first authorized the Federal Housing Administration (FHA) to insure 30-year mortgages for the purchase of existing homes. Back then, the median home sold for about twice median income, the homeownership rate was about 60 percent, and foreclosures were virtually non-existent.Flash-forward to 1992 when the median home sold for 2.85 times median income, foreclosures were once again common (for example, the percentage of FHA loans in foreclosure was 7 times higher in 1992 than in 1954), and, while the home-ownership rate was up to about 64 percent, this increasingly required two incomes.Why focus on 1992? That was the year Congress passed the Safety and Soundness Act covering Fannie Mae and Freddie Mac (the GSEs). This act instigated a congressionally mandated explosion in leverage. Since 1995, we have had two gigantic housing booms. The first began in 1995 and crashed in 2006. The second began in 2012 and continues to grow.The Affordable Housing (AH) Mandates in the 1992 Safety and Soundness Act forced the GSEs to abandon their traditional role as the secondary market for prime loans and instead required them to go into direct competition with both FHA—then the government’s subprime lender—and private subprime lending. In 1992, the GSEs’ purchase loan stress event mortgage risk index (MRI) was 36 percent of FHA’s MRI in the same year. By 2007, the GSEs’ MRI had risen so it was now 80 percent of FHA’s 1992 rate. Congress had accomplished its unstated goal—it now had multiple subprime government mortgage insurers, all with the goal of making homes more “affordable.”However, Congress’ effort to make housing more affordable backfired; it had made them less affordable. The home-price-to-income ratio had risen from a reasonably affordable 2.85 in 1992 to an unaffordable 4.07 in Q1 2006. Further, the homeownership rate was now in a free-fall as millions of homes financed with unsustainable loans were foreclosed upon.Congress decided to double down. In 2008, it passed the Housing and Economic Recovery Act, which strengthened the GSE AH Mandates and gave the Federal Housing Finance Agency (FHFA), the GSEs’ new regulator, expanded powers to set GSE underwriting policy. Then, in 2010, it passed the Dodd-Frank Act, which gave substantial power over the mortgage market to the newly created Consumer Financial Protection Bureau (CFPB).By Q1 2012, the house-price-to-income ratio had returned to a more normal level of 2.93. In January 2013, using its newly minted powers under the Dodd-Frank Act, the CFPB exempted government agencies from key parts of its Ability to Repay rule. As my colleague Peter Wallison and I observed at the time, it was entirely foreseeable that this action would launch yet another unsustainable home price boom. By Q3 2018, the house-price-to-income ratio was back up to 3.51 and heading higher.These policies have driven up the price of low- and low-medium priced (largely entrylevel) homes the fastest. Since Q4 2012, prices of these homes have increased by 47 percent compared to 28 percent for medium-high and high-priced (largely move-up) homes. Said another way, entry-level buyers are now paying about an extra $21,000 to buy a low- or lowmedium priced home.As the chart below demonstrates, congressionally mandated credit loosening fueled these two booms, thereby making homes less, not more affordable. The parallels between these two housing policy-induced booms are striking.Given this history, let us now return to Senator Crapo’s outline to examine its flaws. First, it provides an explicit federal guarantee for all (FHFA) approved guarantors. This not only puts the taxpayers even more on the hook for losses, it has the potential to expand the scope of federal mortgage guarantees outstanding beyond the already massive $6.7 trillion. History teaches us that whenever a federal full faith and credit imprimatur is extended, moral hazard results, with taxpayers the likely losers.Second, this proposal provides a further expansion of the federal government’s role and control of residential mortgage finance, rather than a reduction of that role and control. It accomplishes this by privatizing Fannie Mae and Freddie Mac and setting them up as guarantors benefiting from the new explicit imprimatur. The GSEs enter the market with the inherent advantages of ongoing companies that have been operating in the sector for decades. Any and all other would-be guarantors would be starting from zero, almost assuring few, if any, competitors.Third, the newly proposed solution for affordable housing creates the same problems that the existing structure does—namely, merely substituting one type of subsidy for another. While eliminating the affordable housing goals and duty-to-serve rules is common sense for the reasons noted earlier, its proposed replacement, the Market Access Fund, suffers from the same flaws. Both approaches add leverage and thereby exert upward pressure on house prices, particularly, as noted, for entry-level buyers. It bears repeating: these affordable housing policies make homes less, not more affordable.A fourth flaw is setting Ginnie Mae up as operator of the securitization platform. By all accounts, Ginnie already faces serious operational difficulties and is in need of a major systems makeover. These include serious upgrades to its platform; an issuer portal; a more robust counterparty risk-management program; and upgraded safeguards against issuer failures. Is Ginnie Mae really up to the assigned task, which would likely quadruple its issuances? How much time and money will have to be spent to get Ginnie Mae fully up to speed?Last, the proposed new structure will cause Ginnie Mae securities prices to decline and FHA rates to rise if the explicit government guarantee—now exclusive to Ginnie Mae securities—is extended to all securities issued by all approved guarantors. Suddenly, the guaranteed market grows nearly threefold but at the expense of FHA borrowers. This may well lead to unseen economic consequences.Given the past congressional failures already noted, an appropriate path forward is to use the tools already granted to the administration and regulators to address the many failings of the current governmentcentric approach. This could be done by the Treasury Department working with the FHFA, the FHA, and the CFPB.With respect to the GSEs, the FHFA director/conservator might make the following additions/revisions to the GSE Single-Family Scorecard for 2019:»» Tightened GSE underwriting on primary purchase homes so as not to compete with FHA. This includes not acquiring high CLTV (greater than 95 percent) and high debt-to-income (greater than 43 percent) loans.»» Reduce GSE single-family financing activity not directly related to the acquisition of conforming mortgages made to purchase a primary residence, by setting a goal to substantially reduce such loans so that owner-occupied home-purchase loans at conforming loan limits account for 90 percent of GSE loan acquisitions for calendar year 2023. This goal would be achieved in annual steps and would be accomplished through tightened underwriting, increased guarantee fees, or restrictions on acquiring loans unrelated to the acquisition of conforming mortgages made to purchase a primary residence. Specifically, this would include cashout refinance (25 percent of 2017 acquisition volume), high-cost loan limit (3 percent of 2017 acquisition volume) and freeze conforming loan limit at $453,100 (2018 limit), second home and investor acquisitions (9 percent of 2017 acquisition volume), and non-cash out refinance (15 percent of 2017 acquisition volume).»» GSEs to submit justification for all program and product expansion approvals that have been given while in conservatorship. Those that compete with the private sector should be terminated.»» FHA and the CFPB have their respective roles also. In short, they need to end or revise policies that are procyclical during home price booms. In sum, there’s nothing new in this latest effort to restructure the mortgage finance system. It will not eliminate or reduce the amount or cost of the federal government’s debt. Neither will it reduce moral hazard or promote financial stability. It will certainly not assist low- and moderate-income households by making homeownership more affordable.Given the past failures of congressional action, the obvious solution is to take measured and deliberate administrative action now to implement GSE reform. In five years, the government’s role will have been substantially reduced without any significant market disruption. At that point, a reasonable legislative solution that helps first-time buyers and protects taxpayers will be more visible and doable legislatively. Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Increases in Home-Price Growth Lagging in June

first_img Previous: Cybercrime in Foreclosure Law: Wolves in Sheep’s Clothing Next: Employment’s Correlation with Housing  Print This Post Home-price growth slowed in June, as the S&P CoreLogic Case-Shiller Home Price Index reported that prices rose just annually 3.1% in June—a decline from 3.3% growth in May. Also falling were price gains in 10-city composite, which dropped from 2.2% to 1.8% in June. The 20-city composite posted a 2.1% annual gain, down from 2.4% the prior month. “While falling mortgage rates have thus far only led to an increase in refinancing, rather than purchase activity, there will undoubtedly be a large boon to the marginal homebuyer,” Said Ralph B. McLaughlin, Deputy Chief Economist and Executive of research and insights for CoreLogic. “Thus, we should expect the lengthy slowdown in home price growth to flatten or even tick upwards by the end of the year assuming the U.S. economy avoids any present-day threats of a recession.”Phoenix overtook Las Vegas for the market with the highest annual price growth at 5.8%. Home prices in Las Vegas grew year-over-year by 5.5% and Tampa Bay followed with a 4.7% increase. Atlanta, Georgia, and Detroit, Michigan, were close behind with annual growth at 4.5% and 4.2%, respectively. Six of the 20 cities in the composite reported higher price increases against the prior month. The Federal Housing Finance Agency (FHA) also reported Tuesday that home prices in Q2 2019 rose 1% and are 5% higher when compared to Q2 2018. Home prices have risen for 32-consecutive quarters across the nation, and have increased in every state over the past year. Idaho’s 11.4% appreciation is highest in the nation, followed by Utah (7.7%); Tennessee (7.2%); Georgia (6.9%); and Arizona (6.9%).Realtor.com’s Senior Economist George Ratiu called home price gains in June “sluggish,” and said that some buyers have been priced out of the market and others expanded their search to more affordable neighborhoods. “Although recent economic news has prompted discussion of an impending recession, there’s a silver lining for buyers: more buying power,” Ratiu said. “As we head into the fall season, buyers can expect to see their dollar stretch further due to the downward trend in mortgage rates, as well as the seasonal slowdown in home prices.”Ratiu added that a recent realtor.com report showed that 47% of millennial prefer small towns and rural areas, with 34% looking into living in the suburbs, compared to 16% looking to purchase homes in urban areas. in Daily Dose, Featured, News, Secondary Market Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago About Author: Mike Albanese Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Home Prices Housing Market 2019 Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Increases in Home-Price Growth Lagging in June Demand Propels Home Prices Upward 2 days ago Increases in Home-Price Growth Lagging in June Sign up for DS News Daily August 27, 2019 832 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Home Prices Housing Market 2019 2019-08-27 Mike Albanese 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. Subscribelast_img read more

The Week Ahead: Update on Vacant Properties

first_imgHome / Daily Dose / The Week Ahead: Update on Vacant Properties Share Save This week, the Census Bureau will release its Vacancies and Homeownership Report. According to a report from ATTOM Data Solutions, over 1.5 million (1,530,563) U.S. single-family homes and condos are vacant, representing 1.6% of all homes. The report revealed that there are a total of 9,612 “zombie” homes or properties facing possible foreclosure which have been vacated by their owners nationwide, with the highest number of zombie properties in New York (2,428), followed by Florida (1,634), Illinois (985), Ohio (891) and New Jersey (463).Counties with notably high percentage of vacant homes included Ashtabula County, located northeast of Cleveland. According to Stacker, 23.3% of total homes are vacant in this country, and Ohio holds one of the highest rates of zombie homes in the country, with a total of around 891 in the state. Around half of these vacant homes are in the Cleveland-Elyria metro area, with 431 homes. Additionally, the top two zip codes nationwide with the highest number of zombie properties (with at least 100 properties in pre-foreclosure) are Cleveland zip codes 44105 (57) and 44108 (54).Some of the highest vacancy rates can be found in New Jersey. In Cape May County, New Jersey, 60.6% of total homes are unoccupied, however, nearly all are homes for seasonal or recreational use, as about half of the county’s residential real estate is vacation homes. New Jersey does still have some of the highest rates of zombie homes in the country, according to ATTOM Data Solutions. There are 463 zombie homes in New Jersey, and the 1,566 in the New York-Newark-Jersey City metro area.New York, according to ATTOM, has the highest number of zombie properties, at 2,428, with many of these homes located in New York City. However, Jefferson County, located in northern New York state near the St. Lawrence River, holds the highest percentage of unoccupied homes. With 15,384 out of 60,041 homes, or 25.6%, of total homes unoccupied in Jefferson County. According to Stacker, the area has seen an exodus of residents, dampening demand and activity in its housing market. In 2017, Jefferson County suffered the second-most dramatic population decrease of 2.8% in the United State.Here’s what else is happening in The Week Ahead.First American Real House Price Index (October 28)NAR Pending Home Sales Index (October 28)S&P CoreLogic Case Shiller (October 29)House Financial Services Hearing on LGBTQ Discrimination in Housing and Lending (October 29) Subscribe October 25, 2019 2,095 Views About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Foreclosure Vacancy zombie homes 2019-10-25 Seth Welborn 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 Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Previous: Using Data to Your Advantage Next: Industry Impact: HUD to Address FHA Regulation The Week Ahead: Update on Vacant Properties The Best Markets For Residential Property Investors 2 days ago Tagged with: Foreclosure Vacancy zombie homes 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. in Daily Dose, Featured, News Related Articles Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Maintaining REO Business During a Pandemic

first_img 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 Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago April 9, 2020 2,686 Views Home / Daily Dose / Maintaining REO Business During a Pandemic in Daily Dose, Featured, News, REO Last week, The Federation of REO Certified Experts (FORCE) held virtual regional Townhall Meetings to discuss the impact of COVID-19 on residential real estate listings. Members discussed sustainability and business operations in a time of crisis, and how each region is responding differently.FORCE found that while each county is affected slightly differently, the core influence is the same in each region.State by state, REO experts are facing different challenges. For example, in Washington, agents and brokers are not considered essential, while agents are considered essential in other states, including Nevada, Ohio, Arizona, and California.In areas real estate agents are not labeled as essential, operational strategies should heavily involve online strategiesBusiness can still be done, with the right technology in place, and as FORCE members note, there are still buyers who want to buy and sellers who want to sell. Technology is the way to not be held down in your operations, and with stay-at-home orders in place, many are doing virtual and 3D tours. Make sure you and your staff have the proper internet speeds, and make use of services such as Zoom, Facetime, and Skype for virtual open housings and showings.Members also discussed the potential for break-ins and squatters. In order to mitigate damage, FORCE members suggested working with your community to keep an eye on properties, and maintaining weekly inspections.As members note, there should be no problems with cash deals right now, especially as many credit lines have been pulled. Many FORCE members have stated that they are not taking properties off the market right now to not weaken days on the market, as you can still be doing what you can to get your properties sold, and asset management companies are being more lenient on scorecards during this time.In the coming weeks, Five Star Global and FORCE will be releasing a white paper of the Townhall Meetings’ findings. View recording of each regional webinar at the following linksNortheastern RegionSouthern RegionMidwestern RegionWestern Region Demand Propels Home Prices Upward 2 days ago Previous: Unemployment Hits Housing Industry Next: The Week Ahead: Economic Update From the Fed Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago FORCE REO 2020-04-09 Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Seth Welborn Tagged with: FORCE REO Maintaining REO Business During a Pandemic The Best Markets For Residential Property Investors 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Remote Work Boosts Black Renters’ Ability to Buy Homes

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago November 25, 2020 905 Views Demand Propels Home Prices Upward 2 days ago Homeownership remote work Renting 2020-11-25 Cristin Espinosa Related Articles Remote Work Boosts Black Renters’ Ability to Buy Homes Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Tagged with: Homeownership remote work Renting Previous: The Best of DS5: Inside the Industry – Part 2 Next: Top 5 U.S. Cities Experiencing Drops in Affordable Homes  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily center_img in Daily Dose, Featured, News Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Remote Work Boosts Black Renters’ Ability to Buy Homes Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Andy Beth Miller Servicers Navigate the Post-Pandemic World 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad. According to a recent report published by Zillow, the recent rise in remote work, which has resulted from COVID-19, has affected the housing industry in interesting ways. Zillow data shows that among American renters, Black renters are 29% more likely than other renters in large metro areas to “be able to buy their first home in a less expensive area,” thanks to the rise in remote work opportunities.Zillow arrived at this conclusion based on careful analysis, which was based on criteria including telling factors such as household income, the makeup of local industries, and geography, among others.The Zillow report showed that almost 2 million American renters who are able to take advantage of increased remote work opportunities could now afford the current monthly payments on homes in more affordable areas outside of their current cities. Among these 2 million telecommuting renters, Black renters appear to have more opportunities to purchase starter homes in affordable areas due to “having relatively low income levels, pricing them out of where they currently live,” yet still earning enough to afford homes in less expensive metros with the help of telecommuting jobs.However, the opportunities for remote work depends on the market. In Baltimore, Black households earning $30,000 to $40,000 annually have an edge because their primary breadwinners are more likely to work in industries that are considered to more remote-friendly, such as educational services and public administration.The Zillow report also states, however, that white and Asian renters are much more likely to work in more remote-friendly industries like finance, insurance, and technology. For these renters, their incomes usually allow them to purchase homes in their current metro areas. While remote work may create more opportunities for Black renters to purchase homes in affordable locations, there is still a huge housing affordability issue that people of color must face.Jonathon Holloway, a federal employee and Maryland renter who recently made an offer on a home in Louisiana, shared his own personal experience with this homebuying trend driven by greater remote work options: “Teleworking has opened up more options for my family. We’ve made a life here in Maryland, but with two small children being able to purchase a home back in Louisiana and be closer to my parents and our extended family is just what we need.”Holloway added, “With everything that has happened this year, it makes you stop and realize what is really important. And for us, that’s family. Without the ability to telework, we might not have been able to make this transition.” Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more