Month: May 2021

DS News Webcast: Tuesday 8/6/2013

first_img Previous: First Financial Network Announces $200M Loan Portfolio Offering Next: DS News Webcast: Wednesday 8/7/2013  Print This Post DS News Webcast: Tuesday 8/6/2013 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save 2013-08-07 DSNews Governmental Measures Target Expanded Access to Affordable Housing 2 days ago August 7, 2013 482 Views The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles in Featured, Media, Webcasts The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Featured / DS News Webcast: Tuesday 8/6/2013 Is Rise in Forbearance Volume Cause for Concern? 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: DSNews Sign up for DS News Daily Subscribelast_img read more

Is the Strongest Part of the Housing Recovery Over?

first_img Related Articles  Print This Post Sign up for DS News Daily Home / Daily Dose / Is the Strongest Part of the Housing Recovery Over? February 25, 2014 771 Views Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Headlines, Market Studies, News Case-Shiller Housing Recovery S&P/Case Shiller Home Price Indices 2014-02-25 Tory Barringer Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Many of the nation’s major metros reported slowdowns—and even retreats—in home prices last quarter, but those weren’t enough to keep 2013 from being the strongest year for house prices in nearly a decade.S&P Dow Jones Indices released Tuesday its S&P/Case-Shiller Home Price Indices for December, showing national prices up 11.3 percent as of year-end, a slight pickup over the previous quarter’s annual improvement of 11.2 percent. The national index covers all nine U.S. census divisions.While prices were strong in Q4 compared to the previous year, they were down relative to Q3, dropping 0.3 percent.”The S&P/Case-Shiller Home Price Index ended its best year since 2005,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “However, gains are slowing from month-to-month and the strongest part of the recovery in home values may be over.”Blitzer also pointed out there are other factors to consider when looking at the big picture.”Recent economic reports suggest a bleaker picture for housing,” he said, citing weak numbers in existing-home sales and new construction. “Some of the weakness reflects the cold weather in much of the country. However, higher home prices and mortgage rates are taking a toll on affordability.”For just December, the smaller 10- and 20-city composites were little changed, with only the 20-city index showing a minor decline.Year-over-year, the 10- and 20-city indices posted gains of 13.6 percent and 13.4 percent, respectively, approximately 30 basis points lower than their November increases.As of December, average home prices across the United States were back to mid-2004 levels, remaining down about 20 percent from their peaks in summer of 2006.A few cities stood out in the most recent report. According to Dow Jones Indices, Chicago posted its highest annual return since December 1988, while Dallas posted climbed to another new peak with its largest annual gain since its inception in 2000.Denver, which set an all-time high as recently as last September, reported a 0.1 percent monthly drop in home prices, bringing it down 0.7 percent from its peak. Phoenix, coming off of more than two years of consecutive monthly gains, posted a 0.3 percent price drop, its largest since March 2011.Year-over-year, all 20 cities tracked showed positive growth. Las Vegas, Los Angeles, and San Francisco all posted improvements of more than 20 percent, though they also showed lower annual rates compared to November.At the same time, most of the cities ranked at the bottom in terms of annual growth—including Denver, Washington, D.C., and New York—experienced acceleration in home prices. Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: Liquid Logics Welcomes New VP Next: Freddie Mac Reports Mortgage Portfolio Decrease Is the Strongest Part of the Housing Recovery Over? Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Case-Shiller Housing Recovery S&P/Case Shiller Home Price Indices The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribelast_img read more

Fannie Mae Change Aimed at Helping More Struggling Borrowers Avoid Foreclosure

first_img Fannie Mae Foreclosure Alternatives Foreclosure Prevention Mortgage Servicers 2015-12-09 Brian Honea About Author: Brian Honea Home / Daily Dose / Fannie Mae Change Aimed at Helping More Struggling Borrowers Avoid Foreclosure Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The GSEs have made helping families avoid foreclosure one of their top priorities since the start of the housing crisis, and Fannie Mae just announced an update to support a policy change to assist in that initiative.Fannie Mae announced it has updated its Servicing Management Default Underwriter tool, which will aid servicers in providing foreclosure alternatives to struggling borrowers by saving the servicers time, expense, and complexity of implementing the Default Underwriter tool on their own, according to the announcement from Fannie Mae.“We are continuously looking for ways to help struggling Fannie Mae borrowers,” said Joy Cianci, SVP, Credit Portfolio Management, Fannie Mae. “With this technology update, our servicers will be able to help more struggling borrowers sooner since we are implementing the policy change directly in the tool.”Servicers are required under the new policy change to calculate the borrower’s full mortgage obligation, which includes outstanding principal balance, past due interest, and other arrearages, in order to determine the borrower’s eligibility for either a Streamlined Modification or a Fannie Mae Standard Modification. This is a change from the previous policy, when only a borrower’s outstanding principal balance was calculated.As a result of the policy change, more struggling borrowers will qualify for assistance with avoiding foreclosure and more borrowers will receive additional relief under their loan modification, according to Fannie Mae. The Servicing Default Underwriter tool provides real-time evaluation for servicers to provide timely, responsive, and effective foreclosure avoidance help to struggling borrowers.Click here to view the new policy, which can be found in Fannie Mae’s September 9, 2015 Servicing Guide Announcement. Servicers must implement the new policy on or before March 1, 2016; however, the Servicing Management Default Underwriter has been updated as of December 5, 2015, to allow borrowers to more quickly benefit from the change. Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Fannie Mae Foreclosure Alternatives Foreclosure Prevention Mortgage Servicers Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago December 9, 2015 1,390 Views 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. Related Articles Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Fannie Mae Change Aimed at Helping More Struggling Borrowers Avoid Foreclosure The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Foreclosure, News  Print This Post Previous: JPMorgan Chase Names New CEO of Mortgage Banking Next: Is this the New Normal for the Mortgage Market? Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save Sign up for DS News Daily Subscribelast_img read more

CFPB Director Cordray Doubles Down on Arbitration Clause Stance

first_img Tagged with: Arbitration Clauses CFPB Consumer Financial Protection Bureau Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago CFPB Director Cordray Doubles Down on Arbitration Clause Stance The Best Markets For Residential Property Investors 2 days ago February 22, 2016 1,247 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Subscribe Mandatory pre-dispute arbitration clauses are “deliberately designed to block Americans from effective means of vindicating their rights” and are “having profound effects on American life,” according to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray in a recent address at the American Constitution Society in Washington, D.C.In October 2015, the Bureau announced that it is considering a proposal that would prevent consumer financial companies from using “free pass” arbitration clauses that would prevent consumers from bringing class action lawsuits to obtain relief. These arbitration clauses are typically buried in contracts for consumer financial products and deny consumers the right to sue companies in groups. Companies can use the “free pass” to avoid class action lawsuits from consumers that would require them to hand out big refunds, according to CFPB.“These important clauses have often been buried deep in the fine print of contracts for consumer financial products and services, such as credit cards, bank accounts, payday loans, and private student loans,” Cordray said in his address at the American Constitution Society. “And though they are nearly invisible to most people, they are having profound effects on American life. Some of the broader ramifications are surprising and even breathtaking in their scope. But now both the Congress and the courts are beginning to turn away from the extreme philosophy that says a take-it-or-leave-it provision buried deep inside a form contract can nullify an individual citizen’s ability to vindicate rights conferred on them by federal and state law.”Cordray noted that judicial doctrine on arbitration has evolved to favor arbitration, but Congress still has the authority to adopt laws to regulate the dispute resolution process.The director also pointed out that Congress sought to limit the power of arbitration in the Dodd-Frank Act of 2010, stating that “Congress expressly prohibited the inclusion of arbitration clauses in most residential mortgage loan contracts. It gave the Securities and Exchange Commission authority to prohibit or restrict use of such clauses for certain disputes, if it finds that doing so would be in the public interest and for the protection of investors.”Congress also directed the CFPB to conduct a study (released in March 2015) on the use of pre-arbitration clauses in consumer financial contracts; Cordray spoke extensively of the 728-page study in his address, noting that it was based on extensive information compiled from thousands of federal and state court cases and also data analyzed from the country’s largest arbitration forum. The CFPB’s study revealed that “tens of millions” of American consumer are covered by one or more arbitration clauses, and that the “vast majority” of these consumers did not even know the clauses exist.“Importantly, our study showed that arbitration clauses restrict consumers’ relief in disputes with financial service providers because companies are using them to block class proceedings in any forum—whether court or arbitration,” Cordray said. “This affects consumers’ access to justice because group proceedings are often the only practical way to seek relief for relatively small claims.”He stated that the results of the report “show that arbitration clauses severely limit consumers’ options to pursue a just resolution of their disputes, to their detriment and without their knowledge.” Cordray said based on the findings of the study, the Bureau has decided to launch a rulemaking process to protect consumers by limiting the extend to which arbitration clauses can be used.Click here to view the full text of Cordray’s address. Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Are Legacy HELOC Borrowers at Significant Risk of Default? Next: DS News Webcast: Tuesday 2/23/2016 Related Articles The Best Markets For Residential Property Investors 2 days ago Arbitration Clauses CFPB Consumer Financial Protection Bureau 2016-02-22 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / CFPB Director Cordray Doubles Down on Arbitration Clause Stance Sign up for DS News Daily About Author: Brian Honea in Daily Dose, Featured, Government, News Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Ranking Reverse Mortgage-Backed Securities Issuance

first_img 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] Home / Daily Dose / Ranking Reverse Mortgage-Backed Securities Issuance Subscribe Demand Propels Home Prices Upward 2 days ago HECM HECM mortgage-backed securities HMBS home equity conversion 2018-04-05 David Wharton Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: HECM HECM mortgage-backed securities HMBS home equity conversion Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Ranking Reverse Mortgage-Backed Securities Issuance NewView Advisors, LLC, a financial services firm based in New York, has released a new look at the state of HECM mortgage-backed securities for the first quarter of 2018. HECM is the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage reverse mortgage program, which allows homeowners to withdraw some of the equity in their home. These HECM loans can also be pooled into HECM mortgage-backed securities (HMBS) within the Ginnie Mae II MBS program.The year’s first quarter saw the issuance of $2.97 billion of HMBS, which amounts to 28 percent of calendar 2017’s entire yearly issuance. However, NewView’s report warns that this number may be misleading. “Unless highly seasoned HMBS becomes the norm,” states the report, “expect much lower volume for the remainder of 2018 due to the new PLF curves in effect since October.” HMBS issuance volume for 2017 totaled $10.5 billion. The record was set in 2010 at $10.7 billion.NewView also ranked the top 10 issuers of HMBS for Q1 2018, with Reverse Mortgage Funding (RMF) topping the list with 42 pools and an original aggregate amount of nearly $1.1 billion. That total gave RMF a 36.4 percent market share for the quarter.Coming in second was American Advisors Group’s $587.2 million and 19.8 percent market share. Finance of America Reverse held the third spot with $452.6 million and a 15.26 percent market share, followed by Ocwen Loan Servicing in fourth with $222.8 million and a 7.51 percent market share. Live Well Financial rounds out the top five with $209.4 million in issuance and a 7.06 percent market share.NewView reports that the top five HMBS issuers accounted for 86 percent of total issuance in Q1. That’s an increase of 6 percent over Q4 2017. HMBS issuance during Q4 2017 totaled nearly $3.3 billion. Previous: Houston Updates Building Codes in Floodplain Next: Fight Against Urban Blight Finds Unexpected Ally in Daily Dose, Featured, Journal, News, Secondary Market Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: David Wharton Related Articles Sign up for DS News Daily April 5, 2018 3,169 Views  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

The Housing Market Crash: A Retrospective

first_img The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago August 22, 2018 2,997 Views Tagged with: Borrowers Credit Access Credit Profile Delinquencies Foreclosures Home Purchases Home Sales Homeowners Lenders Lending loans mortgage Mortgage Balances TransUnion Previous: SunTrust Gets the All Clear from NMS Monitor Next: Navigating Risk and Reward Home / Daily Dose / The Housing Market Crash: A Retrospective The Housing Market Crash: A Retrospective  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily 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 Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Borrowers Credit Access Credit Profile Delinquencies Foreclosures Home Purchases Home Sales Homeowners Lenders Lending loans mortgage Mortgage Balances TransUnion 2018-08-22 Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Next month marks the 10-year anniversary of the collapse of Lehman Brothers, generally viewed as the moment the Great Recession began. But a decade later, much has changed in the consumer credit marketplace, most notably and overtly in the mortgage sector, according to the Q2 2018 Industry Insights Report by TransUnion that looks at the meltdown’s effect on consumer access to credit and the relationship they have with it.“From a credit perspective, the financial crisis of 2008 was—and hopefully will remain—one of the most trying times in Americans’ lives,” said Matt Komos, VP of Research and Consulting for TransUnion’s Financial Services business unit. “Ten years later, we have some historical perspective on the repercussions from that period, and fortunately for the overall economy, consumers are generally in a much better place today.”According to the report, changes in consumer and lender behavior are most evident in the mortgage industry. The proliferation of subprime mortgage lending in the mid-2000s, among other market factors, led to massive increases in the percentage of borrowers 60-plus days past due,” the report stated. Serious delinquency peaked above 7 percent in 2010, but at the end of Q2 2018, the serious mortgage delinquency rate was 1.67 percent.In the ensuing decade, tightening, then expanding, access to credit combined with technological innovations to give consumers more options for borrowing, the report stated. As a result, Komos said, “we have seen a rebound in originations across all products since hitting their lowest respective levels from the crisis.”Originations, he said, “have rebounded from a low observed in Q1 2014, but are still down relative to 2008. The downward shift was driven by a large reduction in subprime lending due to lender contraction immediately following the crisis.Komos said recent growth in mortgages is mostly coming from the lowest-risk consumers. “There are more super prime accounts in 2018 than there were in 2008, though account volume has reduced for every other risk tier,” he said. “Most recently, however, we have started to observe lenders providing greater credit access across the full risk spectrum, compared to the period 2010 to 2015, as the economy and housing market have recovered.”According to TransUnion, the subprime share has actually dropped by 25 percent since 2008.Also, the report stated, origination volumes are up across risk tiers but have increased most noticeably for prime and prime-plus consumers.“Together, consumers in these two risk tiers have taken a lot of share from other risk tiers in terms of both accounts and balances,” Komos said. “More specifically, 41 percent of personal loan balances sat in these tiers in 2008, while 53 percent now sit with these tiers today.” Joe Mellman, SVP and Mortgage Business Leader at TransUnion, said declines in the mortgage delinquency rate are “largely a result of the better credit quality of recent homebuyers and a housing market which has seen sustained price appreciation.” Still, Mellman said, homeownership rates continue to remain far below recent historical averages. “The homeownership rate reached approximately 70 percent at the beginning of the decade,” he said, “but has since declined, maintaining 64.2 percent since Q3 2017. Those consumers making home purchases tend to be taking on larger loans, as seen by the continued rise in average debt per mortgage borrower.” Servicers Navigate the Post-Pandemic World 2 days ago About Author: Scott Morganlast_img read more

Measuring March’s Housing Market

first_imgHome / Daily Dose / Measuring March’s Housing Market Previous: CoreLogic Announces New Fraud Risk Model Next: The Impact of Opportunity Zones Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 22, 2019 1,594 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Demand Propels Home Prices Upward 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 Existing-Homes Inventory NAR Sales 2019-04-22 Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Related Articles Subscribe The Best Markets For Residential Property Investors 2 days ago Share Save Following February’s surge, March saw a slip in home sales, according to the National Association of Realtors (NAR). NAR reports that total existing-home sales including single-family homes, townhomes, condominiums and co-ops, fell 4.9% from February to a seasonally adjusted annual rate of 5.21 million in March. Sales as a whole are down 5.4% year over year.“It is not surprising to see a retreat after a powerful surge in sales in the prior month,” said NAR Chief Economist Lawrence Yun. “Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized.”Despite the decline in sales, inventory jumped slightly in March month over month, up to 1.68 million from February’s 1.63 million existing homes available for sale, a 2.4% increase year over year.“Further increases in inventory are highly desirable to keep home prices in check,” says Yun. “The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”According to realtor.com Chief Economist Danielle Hale, this year’s momentum shows promise.”January pending home sales led to strong February existing home sales but that momentum slipped in March with sales down 4.9 percent from revised February figures and down 5.1 percent from last March. Prices showed continued gains, but lost some ground registering up 3.8 percent from a year ago compared with 3.9 percent last month,” said Hale. “Even if home sales lose some momentum month to month, they will likely be able to better keep pace with last year’s sales in the months ahead as a result of increased buyer purchasing power from lower mortgage rates. In fact, the year over year sales decline abated from 7.5 percent in the fourth quarter to 5.4 percent in the first quarter.”NAR notes that homes stayed on the market for an average of 36 days in March, down from 44 days in February, but up from 30 days year over year. in Daily Dose, Featured, Market Studies, News Sign up for DS News Daily About Author: Seth Welborn Tagged with: Existing-Homes Inventory NAR Sales Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Measuring March’s Housing Market The Best Markets For Residential Property Investors 2 days agolast_img read more

The Rise of Unconventional Loans

first_imgSign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Servicers Navigate the Post-Pandemic World 2 days ago loans mortgage Sales 2019-08-21 Seth Welborn Previous: Mortgage Debt on the Rise, Volume of Mortgages Falling Next: Ask the Economist: Millennial Demand and Affordability Issues August 21, 2019 1,383 Views Tagged with: loans mortgage Sales Demand Propels Home Prices Upward 2 days ago Home buyers with low credit scores or high debt levels as well as those lacking traditional employment are finding it easier to get credit as strict lending requirements put in place following the financial crisis are beginning to erode, according to the Wall Street Journal.WSJ states that risky lending is making a return, as subprime and Alt-A mortgages are rebranded into non-qualified loans. Borrowers took out a record number of these loans in 2018, at $45 billion, the most in a decade, and are likely to take out more in 2019. Proponents state that mortgages became too hard to get post-2008, and unconventional loans, such as non-QM loans, could open the housing market to sound borrowers who had been shut out of it. “There are some weakening standards and weakening practices,” said Eric Kaplan, Director of the Housing Finance Program at the Milken Institute on Wall Street Journal. “It doesn’t rise to the same level yet, to my knowledge, of some of the things taking place just prior to the crisis. But we have to be vigilant.”Nonbank lenders are largely the ones extending non-traditional loans, but big banks such as JPMorgan Chase & Co., Credit Suisse Group AG and Citigroup Inc. have recently been arranging mortgage bonds backed by unconventional loans.Big banks’ mortgage arms are still avoiding riskier borrowers, leaving them to nonbank lenders. Despite the rise in unconventional loans, the market for unconventional home loans is still smallcompared with the rest of the mortgage market, as well as its precrisis past, when unconventional borrowing peaked at more than $1 trillion. “Still, the increase in unconventional loans shows that lenders are looking farther afield for customers,” WSJ’s Ben Eisen states. “As the U.S. economic expansion ages and home prices rise faster than incomes for most Americans, the mortgage industry is finding that there is a limited number of cream-of-the-crop borrowers.” About Author: Seth Welborn  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Investment, Market Studies, News 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 ago The Rise of Unconventional Loans Home / Daily Dose / The Rise of Unconventional Loans Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save Subscribelast_img read more

The Danger Beyond the Storm

first_img Damage Florida Insurance Loss Risk 2019-11-06 Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / The Danger Beyond the Storm November 6, 2019 1,134 Views The Best Markets For Residential Property Investors 2 days ago Previous: Freddie Mac Transfers $2.5B in Credit Risk Next: Key Challenges Facing Mortgage Servicing Sign up for DS News Daily Tagged with: Damage Florida Insurance Loss Risk About Author: Seth Welborn The Danger Beyond the Storm Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Demand Propels Home Prices Upward 2 days agocenter_img Share Save Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Loss Mitigation, News Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Florida may be known for a high volume of natural disaster-related damage, but according to a study from Location Inc., Florida also has the highest volume of non-weather-related damage. According to the study, while 1 in 15 homeowners will experience damage that results in a non-weather water claim during the standard five year insurance policy lifecycle, in Florida, that number jumps to 1 in 3 at the highest, with an average claim probability of 1 in 9.Miami-Dade County is considered the most at risk for non-weather-related damage, with an average claim probability of 1 in 5. Outside of Florida, California and Maryland are at the highest risk for non-weather-related damage by state, with an average claim probability of 1 in 10 in each state.Unlike the storms that hit hit Florida’s coastline too often, these damages often occur inside the home. Damages can include appliance leaks and failures, plumbing leaks and pipe failures, fixtures leaks and failures, or ruptured connecting hoses. In total, Location Inc. notes that insurers lose $8.2 Billion a year from plumbing and appliance leaks, and the average costs for repair is around $6,695. Repairs can cost much more, however, as non-weather water claims vary by location, ranging from $1,354 to $44,686.In Florida, private insurers are focused mainly on non-weather-related risks, and commentary from the Harvard Business Review states that no private insurance companies retain residential flood risk in Florida, Virginia, and other coastal markets due to sea levels, and programs such as the National Flood Insurance Program keeps residents insured.There is also a lack of restrictions on where one can build and what cane be built. “A society that prides itself on free will and self-determination is loath to say what a property owner can and cannot build on their own land as long as it meets rudimentary building and zoning codes: So more and more people move into harm’s way in flood plains, low-lying coastal areas, and tinder dry western landscapes,” the report states. Subscribelast_img read more

Data Suggests Post-Forbearance Foreclosure Surge Is Unlikely

first_img in Daily Dose, Featured, News Demand Propels Home Prices Upward 2 days ago Data Suggests Post-Forbearance Foreclosure Surge Is Unlikely The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Data Suggests Post-Forbearance Foreclosure Surge Is Unlikely Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago February 12, 2021 12,912 Views 2021-02-12 Christina Hughes Babb Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Christina Hughes Babb  Print This Post Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago A feared foreclosure surge seems less likely than some anticipate, according to research associates at the Urban Institute.Flatlining forbearance rates have generated concern among members of the media, causing experts to predict that a large number of homeowners could face foreclosure in 2021.”Some policymakers worry about what will happen at the end of forbearance to these borrowers and whether borrowers who have not regained their prior financial position will go into foreclosure,” noted the institute’s Michael Neal and Lori Goodman. “But this widespread forbearance won’t necessarily happen, even among government loan borrowers who have a higher risk of default due to higher-initial-loan to value ratios, higher debt-to-income ratios, lower credit scores, and lower incomes than borrowers using conventional loans.”They say that loss mitigation policies and substantial housing equity can keep foreclosures at bay in most states.The two strong lines of defense are the “loss mitigation waterfall” and the amount of home equity that borrowers have accumulated thanks to home price appreciation.Borrowers in government securities have an average 22% equity buffer, which is a saving factor for those homeowners, according to the Urban Institute’s report.According to the institute’s analysis, the average borrower with a government loan has 22% equity.Just 3,771 of about 626,000 delinquent or forborne borrowers; .6%, have negative equity. Most (2,817) are U.S. VA loans, many of which are originated with loan-to-value ratios above 100%. Fewer than 500 FHA and Rural Housing loans have negative equity.In some states, the smaller home equity buffer may result in more foreclosures, note the authors.They write, “The share of mortgages with negative equity values range from a low of 0.1% in several states to highs of 1.8% in Wisconsin and 1.4% in Illinois. The share of borrowers with negative equity or near-negative equity are mostly in the single digits, with only Wisconsin, Illinois, and Alaska exceeding 10%.In analyzing the data, which can be read in full on urban.org, the researchers concluded that Americans will see far fewer foreclosures than they did after the Great Recession.”The three-month extension of the forbearance period announced on February 9 was welcome news, as it gives struggling borrowers more time to benefit from improved employment prospects as the economy recovers and to build an equity cushion; this is particularly critical to homeowners without equity,” UI reported. “A further extension may well be necessary.” Subscribe Previous: Decreased Delinquencies Only Tell ‘Part of the Story’ Next: The Week Ahead: Mortgage Servicing in Coming Months Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more