Month: May 2021

CFPB Bulletin Reminds Financial Institutions of Supervisory Information Confidentiality

first_img Demand Propels Home Prices Upward 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News January 27, 2015 1,328 Views  Print This Post Previous: Mortgage Risk Rises, Causing Concerns Over Expansion of Credit Access Next: Unemployment Rate Falls in 42 States Monthly in December The Consumer Financial Protection Bureau (CFPB) released a bulletin on Tuesday to remind supervised financial institutions of the existing regulatory requirements regarding the confidentiality of supervisory information.Included in the bulletin were non-bank financial institutions that may be unfamiliar with federal supervision.”The CFPB’s supervision program holds companies accountable for how they treat consumers,” CFPB Director Richard Cordray said. “The Bureau’s oversight of banks and nonbanks alike helps to level the playing field for all companies, and to ensure a fair and transparent marketplace for consumers.”Banks and credit unions with assets totaling more than $10 billion fall under the supervision of the CFPB, as well as certain nonbank financial companies such as mortgage lenders and servicers, payday lenders, and private student lenders, as well certain large debt collectors, consumer reporting agencies, student loan servicers, and international remittance providers. Tuesday’s bulletin provides guidance as far as what types of information should be defined as confidential supervisory information and states that with limited exceptions, disclosure of such information is not allowed.The CFPB stated in the bulletin that its existing supervisory authority over an institution is not limited or altered by any non-disclosure agreement that institution has entered into that may restrict it from sharing information with a regulator or requires the institution to notify a third party when it shares information, nor are the institution’s obligations relating to confidential supervisory information changed or altered in any way. The Best Markets For Residential Property Investors 2 days ago CFPB Consumer Financial Protection Bureau Supervisory Information 2015-01-27 Brian Honea CFPB Bulletin Reminds Financial Institutions of Supervisory Information Confidentiality Related Articles The Best Markets For Residential Property Investors 2 days ago Tagged with: CFPB Consumer Financial Protection Bureau Supervisory Informationcenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 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. Home / Daily Dose / CFPB Bulletin Reminds Financial Institutions of Supervisory Information Confidentiality Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brian Honea Sign up for DS News Daily Subscribelast_img read more

Millennials Less Likely to Identify Credit-Altering Life Events, But Do Check Credit for Mortgages

first_img Millennials Less Likely to Identify Credit-Altering Life Events, But Do Check Credit for Mortgages Servicers Navigate the Post-Pandemic World 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago October 21, 2015 4,328 Views Millennials Mortgage Credit Access TransUnion 2015-10-21 Brian Honea The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily About Author: Xhevrije West Previous: Foreclosure Data Has Significantly Improved From Crisis Peak Five Years Ago Next: DS News Webcast: Thursday 10/22/2015 in Daily Dose, Featured, Market Studies, News Although millennials are less likely than baby boomers to identify milestone life events that could affect their credit, more than half of them are checking their credit when taking out a mortgage loan.An online survey from TransUnion of 1,136 U.S. consumers ages 18 and up found that less than half of millennials surveyed are aware of major life events that could positively or negatively affect credit.TransUnion determined that consumers of all ages are usually unprepared for life events when credit is needed because they do not check their scores before or after the life event.Approximately 49 percent of all respondents said they checked their credit when planning for or experiencing a milestone. However, 58 percent of those surveyed noted that they did check their credit score when seeking a mortgage loan, indicating that they were slightly more likely to check their credit when taking out a loan.“It’s important for all people to understand the effect of life milestones on their credit so they can put themselves in a position to reach personal and financial goals,” said Ken Chaplin, SVP at TransUnion. “This survey reveals that many people, especially younger adults, may not be prepared for how certain events, such as marriage, buying a home or getting a car could alter their credit scores.”The availability of mortgage credit to borrowers declined slightly in the second quarter of 2015, despite impactful federal efforts to expand the credit box.“It’s important for all people to understand the effect of life milestones on their credit so they can put themselves in a position to reach personal and financial goals.”—Ken ChaplinThe Urban Institute’s Housing Finance Policy Center reported in their Housing Credit Availability Index (HCAI) that mortgage credit availability decreased from 5.5 in the first quarter to 5.3 in the current quarter.However, the report notes that credit access remains above the all-time low of 4.6, which occurred in the third quarter of 2013.Effort to expand the credit box have been made on both ends and are “having an impact” within the mortgage industry.Click here to read TransUnion’s full report. Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Servicers Navigate the Post-Pandemic World 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Millennials Mortgage Credit Access TransUnion Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago 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 The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Home / Daily Dose / Millennials Less Likely to Identify Credit-Altering Life Events, But Do Check Credit for Mortgages The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

CFPB Reports Another $107 Million Returned to Consumers Through Supervisory Actions

first_imgHome / Daily Dose / CFPB Reports Another $107 Million Returned to Consumers Through Supervisory Actions in Daily Dose, Featured, Government, News CFPB Reports Another $107 Million Returned to Consumers Through Supervisory Actions Share Save Tagged with: CFPB Consumer Financial Protection Bureau Mortgage Servicers Supervisory Actions Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Supervisory actions by the Consumer Financial Protection Bureau (CFPB) recovered $107 million in relief for more than 238,000 consumers, according to the Bureau’s latest supervision report outlining illegal practices the Bureau’s examiners uncovered during the three-month period, according to an announcement from the CFPB on Tuesday.“Our supervisory activities in the past few months have returned $107 million to hundreds of thousands of harmed consumers,” CFPB Director Richard Cordray said. “Borrowers should not be mistreated when trying to repay their loans. We will continue to shine light on the problems we observe in areas such as servicing, consumer reporting, and debt collection, and hold companies accountable when they do not treat borrowers fairly.”Among the findings in the report were that mortgage servicers failed to automatically terminate mortgage insurance and reimburse consumers. Examiners found that more than one mortgage servicer was in violation of the Homeowners Protection Act when they failed to automatically terminate private mortgage insurance for borrowers who were eligible to have such insurance automatically terminated. Under the Homeowners Protection Act, borrowers are eligible to have private mortgage insurance automatically terminated (and servicers are required to terminate the insurance) when the principal balance of the loan is scheduled to reach 78 percent of the original value of the property, according to the CFPB.“We will continue to shine light on the problems we observe in areas such as servicing, consumer reporting, and debt collection, and hold companies accountable when they do not treat borrowers fairly.”Richard CordrayThe CFPB has authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to supervise banks and credit unions with assets totaling more than $10 billion, along with certain nonbanks that include mortgage companies, payday lenders, private student lenders, and other nonbanks the CFPB has determined to be “large participants” in the financial market.The report issued Tuesday was the ninth edition of Supervisory Highlights. The problems the CFPB finds during supervisory examinations are often resolved without enforcement action non-publicly. Such actions have occurred recently in the areas of mortgage servicing, mortgage origination, deposits, and credit cards. From May 2015 to August 2015, such actions resulted in $107 million in restitution to more than 238,000 consumers.To view the Supervisory Highlights report issued Tuesday, click here.  Print This Post Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago November 3, 2015 1,004 Views Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago CFPB Consumer Financial Protection Bureau Mortgage Servicers Supervisory Actions 2015-11-03 Brian Honea 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Sign up for DS News Daily Previous: RMBS Suit Filed by S&P Investors is Denied Revival by U.S. Supreme Court Next: DS News Webcast: Wednesday 11/4/2015last_img read more

Are Banks Approving Riskier Loans?

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Banks Credit Risk OCC Underwriting Standards The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save A survey of 95 national banks and federal savings associations revealed overall on average, those institutions have eased their underwriting standards for the third consecutive year, according to a report from the Office of the Comptroller of the Currency (OCC).The 21st annual Survey of Credit Underwriting Practices conducted by the OCC showed that underwriting standards at those 95 institutions had not only eased during the period of 2013 to 2015, but reflected trends similar to those seen from 2005 to 2007 immediately prior to the crisis. The survey results cover the 12-month period ending June 30, 2015, and covers loans totaling $5.1 trillion, or about 94 percent of all loans in the federal banking system, according to the OCC.The survey found that due to the easing underwriting standards, the level of credit risk that came with the loans had increased significantly. A significant share of commercial and real estate loan products reflected increased risk from 2014, according to the OCC—and examiners expect both portfolios to see increased levels of risk over the next 12 months.“We are seeing trends very similar to those that examiners reported just prior to the most recent financial crisis,” said Jennifer C. Kelly, Senior Deputy Comptroller and Chief National Bank Examiner. “With credit risk on the rise, OCC examiners will remain focused on evaluating new loan originations to assess banks’ and federal savings associations’ efforts to maintain prudent underwriting standards and practices through this stage of the credit cycle.”Seven categories were included when calculating underwriting standards for retail products: Affordable housing, conventional home equity, credit cards, direct consumer lending, high loan-to-value home equity, indirect consumer lending, and residential first mortgages. From 2014 to 2015, the percentage of banks surveyed that eased their underwriting standards across the seven retail products categories jumped from 22 percent to 27 percent (the highest level since 2006) while the share of banks that tightened underwriting standards tumbled from 10 percent in 2014 to1 percent in 2015, according to the OCC.In residential real estate lending, the share of banks that eased underwriting standards rose from 10 percent in 2014 up to13 percent in 2015, while the share that tightened underwriting standards plummeted from 20 percent in 2014 to 6 percent in 2015.Click here to view the OCC’s complete survey. Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News Related Articles Previous: Bank of America’s Revised Capital Plan Earns Fed’s Approval Next: Morgan Stanley Settles with NCUA Over Faulty RMBS Demand Propels Home Prices Upward 2 days agocenter_img  Print This Post Home / Daily Dose / Are Banks Approving Riskier Loans? The Best Markets For Residential Property Investors 2 days ago Are Banks Approving Riskier Loans? Data Provider Black Knight to Acquire Top of Mind 2 days ago December 10, 2015 1,537 Views Banks Credit Risk OCC Underwriting Standards 2015-12-10 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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. About Author: Brian Honea Subscribelast_img read more

Watchdog Recommends FHFA Enhance Risk Assessment Audits for GSEs

first_img in Daily Dose, Featured, News, Secondary Market Fannie Mae Federal Housing Finance Agency FHFA FHFA Office of Inspector General Freddie Mac Risk Assessment 2016-01-07 Brian Honea The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago January 7, 2016 1,126 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Quintairos, Prieto, Wood & Boyer Expands in Last Quarter of 2015 Next: Consumer Sentiment Ends 2015 at an All-Time High Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Tagged with: Fannie Mae Federal Housing Finance Agency FHFA FHFA Office of Inspector General Freddie Mac Risk Assessment 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. Watchdog Recommends FHFA Enhance Risk Assessment Audits for GSEs Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img 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  Print This Post About Author: Brian Honea Related Articles Home / Daily Dose / Watchdog Recommends FHFA Enhance Risk Assessment Audits for GSEs The Office of the Inspector General (OIG) for the Federal Housing Finance Agency (FHFA) has recommended that the agency enhance its risk assessment framework in an effort to limit variations in risk assessments for Fannie Mae and Freddie Mac, according to a report from the OIG released this week.FHFA and other financial regulators use a risk-based approach for examination activities to determine if the Enterprises are achieving their goal of providing a reliable source of liquidity and funding for the housing market and community investment, and risk assessments are critical to the success of such a risk-based approach. Risk assessments, which are revised regularly, provides the regulatory agency with a comprehensive view identifying primary risks to the examined entity as well as the causes of unfavorable trends and the entity’s strengths and vulnerabilities.The OIG conducted the examination of the FHFA’s supervisory activities to “assess whether FHFA’s requirements for its risk assessments of the Enterprises are sufficiently robust to produce risk assessments that achieve the purpose for which they are intended,” wrote Angela Choy, Assistant Inspector General for Evaluations, in the report.The report found that despite the fact that the Enterprises have “virtually identical federal charters, substantially comparable business models, and similar risk profiles,” significant variations in risk assessments exist between the GSEs. Even though the GSEs share the same type of risk and those risks lend themselves to standardized measures, the significant variations in risk assessments limits the ability to use those assessments as a tool to compare risks between the GSEs. Hence, the OIG made three recommendations to the FHFA to enhance the risk assessment framework for the GSEs:The OIG recommends that the FHFA adopt minimum requirements for risk assessments that facilitate comparable analyses for each Enterprise’s risk positions. The recommended requirements include common criteria for determining whether risk levels are high, medium, or low, year over year. In its response, FHFA stated that its Division of Enterprise Regulation (DER) agreed with the recommendation and will “amend its existing internal guidance on the performance of risk assessments to include key definitions of terms used in risk assessments and to specify measures for inclusion in risk assessments in the areas of credit, market, and operational risk” by May 25, 2016.The OIG recommend that the FHFA adopt standard requirements and the necessary documentation to support conclusions that will reduce the amount of variability in the DER’s risk assessments between the GSEs. In its response, FHFA said that by May 25, 2016, DER agreed with the recommendation would amend internal guidance on risk assessment performance to include “more specific guidance on the format for presentation of risk analysis and on supporting documentation needed for risk assessment conclusions.”The OIG directed that DER train its examiners in charge of semi-annual risk assessments to use the enhanced guidance consistent with the first two recommendations above. FHFA stated in the response that the DER agrees and will have provided such training by October 14, 2016.Click here to read the FHFA Office of Inspector General’s full report. Servicers Navigate the Post-Pandemic World 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

Ocwen Remains Positive Despite Another Quarterly Loss

first_imgHome / Daily Dose / Ocwen Remains Positive Despite Another Quarterly Loss Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Earnings Ocwen Profits Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Ocwen Remains Positive Despite Another Quarterly Loss Earnings Ocwen Profits 2016-07-27 Kendall Baer Financially, it has not been a good year for Ocwen Financial Corp. through the first six months.  After reporting a net loss of $111 million for the first quarter of 2016, the nonbank servicer came back in the second quarter with a net loss of $87.2 million (71 cents per share), according to Ocwen’s Q2 earnings report released Wednesday.Q2’s net loss brought Ocwen’s total net loss for the first half of 2016 up to $198.4 million, compared with a net income of $44.3 million for the first half of 2015. After substantial losses in the third and fourth quarters, however, Ocwen posted a net loss of more than $200 million for the full year of 2015 (the silver lining was, it was an improvement from 2014’s reported net loss of $546 million).Ocwen’s pre-tax net loss of $96.4 million in Q2 were impacted by $40 million in legal defense costs and settlement expenses related to a $30 million settlement in the two Fisher cases to resolve allegations that Ocwen had falsely certified its compliance with certain federal mortgage programs. Ocwen had been battling the two Fisher lawsuits since 2012.Also having an adverse effect on Ocwen’s Q2 financial results were a $15 million reserve for a potential future regulatory settlement, $11.4 million of unfavorable interest rate driven fair value changes related to Ginnie Mae and GSE mortgage servicing rights, and $4.3 million in interest expense under Ocwen’s agreements with New Residential Investment Corp. related to an S&P ratings downgrade of Ocwen.As for the positives of the Q2 earnings report, Ocwen saw a quarter-over-quarter increase in revenue of $42 million—the first time revenue had increased over-the-quarter in a year. The company also experienced a 35 percent over-the-quarter increase in origination volume. Also, Ocwen completed 19,729 loan modifications to assist homeowners facing foreclosure during Q2, which was a 19 percent increase from Q1.“We are pleased to see the progress being made in our core businesses and new initiatives. We also continue to put additional legacy issues, such as the Fisher cases, behind us. While we still have more to do on various fronts, we are moving towards returning to profitability in our core operations while growing our asset-generation activities,” commented Ron Faris, President and CEO. “We continue to invest in risk management, compliance, service excellence and technology. We maintain our leadership in helping families struggling with their mortgage payments as evidenced by our number one status in the Home Affordable Modification Program (HAMP) and our numerous, well-regarded community outreach efforts. Our growth in mortgage lending and Automotive Capital Services are gratifying early indicators of potential success in new initiatives that can allow us, over time, to drive earnings growth.”Click here to view a presentation on Ocwen’s Q2 earnings. July 27, 2016 1,229 Views  Print This Post in Daily Dose, Featured, News Demand Propels Home Prices Upward 2 days ago About Author: Kendall Baer Demand Propels Home Prices Upward 2 days agocenter_img Sign up for DS News Daily Previous: Treasury Reflects On Six Years of Reform Progress Next: Historical Performance Data Finally Released The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, TX. Born and raised in Texas, Kendall now works as the online editor for DS News. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Subscribelast_img read more

Presidents Ranked by Housing Stats

first_imgHome / Daily Dose / Presidents Ranked by Housing Stats Demand Propels Home Prices Upward 2 days ago Home Prices obama President Trump 2017-02-17 Sandra Lane About Author: Sandra Lane Sandra Lane has extensive experience covering the default servicing industry. She contributed regularly to DS News’ predecessor, REO Magazine, from 2004 to 2006, covering local market trends, the effects of macroeconomic shifts on market conditions, and “big-picture” analyses of industry-driving indicators. But her understanding of the mortgage and real estate business extends even beyond those pre-crisis days. She is a former real estate broker and grew up in what she calls “a real estate family.” A journalism graduate of the University of North Texas, she has written articles for various newspapers and trade journals, as well as company communications for several major corporations. The Best Markets For Residential Property Investors 2 days ago 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 The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe in Daily Dose, Featured, Market Studies Servicers Navigate the Post-Pandemic World 2 days ago To celebrate President’s Day, the National Association of Realtors® has produced some data showing the national median single-family home price at the time each president was sworn in since 1969.There have been nine U.S. presidents since the NAR began its comprehensive reporting of home sales data in 1968. The country and the typical cost to buy a home have changed a lot.Richard Nixon: 1969 – $137,988; 1973 – $156,221Gerald Ford: August 1974 – $160,166Jimmy Carter: 1977 – $156,836Ronald Reagan: 1981 – $170,302; 1985 – $164,614George H.W. Bush: 1989 – $174.779Bill Clinton: 1993 – $170,911; 1997 – $184,528George W. Bush: 2001 – $195,014; 2005 – $239, 761Barack Obama: 2009 – $183,693; 2013 – $176,278Donald Trump: 2017 – $234,900Despite an overall upward trend, there have been some dips in median home prices through the years. The data team at The Economist said, “What a difference a decade makes. In 2006 house prices in America hit an all-time high, after rising unabated for the previous 10 years. The crash that followed brought the entire global financial system to its knees.” On the other hand, they point out that today’s American home prices have recovered nearly all their losses from the 2006 crash, but when adjusted for inflation they are still 20 percent below the 2006 peak.Although the residential real estate market is looking good, some ask if another correction could be on the horizon? To gauge the stability of America’s housing market, The Economist looks at two measures of affordability: the ratio of price to income and price to rent.Encouragingly, they said that across America prices appear to be at fair value when compared to their long-run averages. Yet in some cities, such as San Francisco, affordability looks stretched when compared against income. Prices in the City by the Bay are 40 percent above their long-run average when compared to income. Theory suggests that they should eventually fall back down to earth.In predicting the continuing stability of the U.S. residential real estate market, opinions vary just about as much as they do in predicting what the government will do concerning real estate and lending regulations.center_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post February 17, 2017 1,521 Views Previous: Ocwen, California Settle 2-year-old Case Next: The Week Ahead: Spreading Economic Confidence Among Consumers Presidents Ranked by Housing Stats Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago Tagged with: Home Prices obama President Trump Sign up for DS News Daily Related Articleslast_img read more

The Week Ahead: The State of Property Preservation

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Tagged with: CFPB Dodd-Frank About Author: Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, News The National Property Preservation Conference (NPPC), hosted by Safeguard Properties, is unfolding at the Mayflower Hotel in Washington, D.C., from November 3-5. This year, the conference will include keynotes from The Hon. Brian D. Montgomery, Assistant Secretary for Housing – Federal Housing Commissioner, United States Department of Housing and Urban Development; and Sandra Thompson, Director for the Division of Housing Mission and Goals for the Federal Housing Finance Agency.On Monday morning at 9:00 a.m. ET, Ed Delgado, President & CEO of Five Star Global, will continue an annual tradition with his “State of the Industry” panel, featuring a lineup of industry experts discussing the trends and challenges facing both property preservation and the larger housing market and economy as a whole.This year’s panelists include:Alan Jaffa, CEO, SafeguardBrian Martin, CEO, Dakota Asset ServicesCaroline Reaves, CEO, Mortgage Contracting ServicesTim Rood, Chairman and Managing Director, SitusAMCShubha Shivapurkar, Senior Director, Non-Performing Loans, Single-Family Operations,Freddie MacJacob Williamson, VP Single-Family Real Estate, Fannie MaeOther topics to be covered during the NPPC include code violations, vendor management, hazard claims, and other challenges and hot topics.  You can find more information about the NPPC, including a full schedule and panel lineup, on the official website.Here’s what else is happening in The Week Ahead.Black Knight Mortgage Monitor (November 4)Banking, Housing, and Urban Affairs Hearing (November 7)Consumer sentiment index (November 8) Home / Daily Dose / The Week Ahead: The State of Property Preservation November 1, 2019 1,548 Views The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Postcenter_img Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: The State of Property Preservation Servicers Navigate the Post-Pandemic World 2 days ago CFPB Dodd-Frank 2019-11-01 Seth Welborn Demand Propels Home Prices Upward 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Demand Propels Home Prices Upward 2 days ago Previous: Over $2T Worth of Homes at Risk of Wildfire Destruction Next: Weight of the World: Challenges in Property Preservationlast_img read more

How Institutional Housing Investors Shaped Recovery

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles About Author: Seth Welborn After the housing crisis, institutional investors became one of the largest homebuyer segments. In a new study from the Urban Institue, researchers ask if these investors have raised or depressed surrounding home prices, and examined their impact on rents.According to Urban, housing prices started to recover around 2012, but homeownership rates continued to decline until 2016. According to Lauren Lambie-Hanson, an advisor and research fellow at the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute, this “housing recovery without homeowners” is partly caused by the increased market presence of institutional investors—corporate entities that invest in multiple properties, either for the purpose of flipping or renting.Rohan Ganduri, Assistant Professor of Finance at Emory University’s Goizueta Business School, and his coauthors found “institutional purchases of distressed properties have a positive spillover effect on neighboring home values.” Homes within a quarter-mile (roughly five blocks) of an institutionally purchased home sold at a value 1.4% higher than properties a quarter- to a half-mile farther.“The economic significance of this effect is that investors account for, or help explain, about 28% of the house price recovery,” Lambie-Hanson explained.Rents, meanwhile, seem to have been unaffected by institutional investors. Large institutional firms that offer single-family rentals have spent on average $21,000 in renovations after acquiring a home, said George Auerbach, a managing director and the head of research at Pretiu. Lambie-Hanson also noted that “there really isn’t any evidence in our research that institutional investors led to higher rents or greater eviction rates for our sample of counties tracked through the recovery.”“There’s been a large shift in how institutional investors buy homes today versus in 2009 through 2014—certainly much less distress, many fewer blind pools,” said Auerbach. “How will that impact pricing differently going forward than it did in the postcrisis period?” Investors Recovery 2020-03-10 Seth Welborn Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.  Print This Post How Institutional Housing Investors Shaped Recovery Share Save Previous: Disaster-Struck Areas Recovering From Delinquency Next: The Times, They Are a’ Changin’: AI in Mortgage Servicing Home / Daily Dose / How Institutional Housing Investors Shaped Recovery Servicers Navigate the Post-Pandemic World 2 days agocenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Investors Recovery Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago March 10, 2020 1,601 Views in Daily Dose, Featured, Investment, News Subscribelast_img read more

Serious Mortgage Delinquency Rates on the Rise

first_img In August, the daylight between early-stage delinquencies and seriously past-due mortgages continued to swell, according to Black Knight’s “first look” at August’s month-end mortgage performance statistics, which covers the majority of the national mortgage market.On the heels of falling a combined 0.85 basis points over the previous two months, overall, the national delinquency rate dropped only 0.03 basis points from July.The share of borrowers with one missed payment already had sagged beneath levels prior to COVID-19. Last month, the sum of all early-stage delinquencies (those 30 and 60 days past due) dropped 9%, also falling below that benchmark.That said, the uptick in early-stage delinquencies was offset by a 5% bounce in serious delinquencies, those at least 90 days past due. Those have risen in each of the last five months. Of those five months, August’s ascent in serious delinquencies was the smallest increase, which Black Knight says suggests “they may be nearing their peak.”Among the top five states by non-current percentage, as of Aug. 20,  Mississippi topped the list at 11.73%, followed by Louisiana, 11.29%; Hawaii, 9.56%; New York, 9.42%; and Florida, 9.12%.Meantime, compared to levels prior to the pandemic, there are almost two million more seriously delinquent homeowners. However, stemming from active forbearance plans and moratoriums on foreclosures, as has been the cause, there’s been a quieting of foreclosures.The national delinquency rate increased by 90.22%, according to Black Knight’s latest Mortgage Monitor Report, with 1.6 million new delinquencies since March and a rate of 6.45%, the largest single-month increase on record, according to DSNews.com.Just three months after hitting a record low in January 2020, the national delinquency rate is now at its highest level since 2013, Black Knight notes.After falling more than 1.5% below its pre-Great Recession average in early 2020, the national delinquency rate is now 2.25% above that benchmark and may be poised to climb higher in May.While delinquencies rose by at least a full percentage point in all of the 100 largest U.S. metro areas and all 50 states, impacts varied across the country. Delinquency rate increases in Miami (+7.2%) and Las Vegas (+6.2%) were both more than twice the national rise.Delinquencies varied by home value as well. Mortgages on properties worth less than $100,000 have a delinquency rate of 9.4%, while those on properties worth more than $1 million are less than 1/3 that rate.The most significant single-month increases in delinquency rates have been among borrowers with homes in the $400,000 to $500,000 range, with lesser impacts both up and down the home price spectrum. The largest volume of net new delinquencies have still come from more moderately priced homes, simply because that’s where the bulk of the volume lies. Black Knight notes that 50% of the increase in mortgage delinquencies from March to April came on properties valued between $100,000 and $299,000. September 23, 2020 5,650 Views Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Black Knight Delinquencies 2020-09-23 Christina Hughes Babb About Author: Chuck Green Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save  Print This Post Previous: FHFA Updates Collection of Mortgage-Acquisition Data Next: FHFA Adjusts Deadline for Purchase of Qualified Loans Serious Mortgage Delinquency Rates on the Rise Data Provider Black Knight to Acquire Top of Mind 2 days ago Chuck Green has contributed to the Wall Street Journal, Washington Post, Los Angeles Times, San Francisco Chronicle, Chicago Tribune and others covering various industries, including real estate, business and banking, technology, and sports. The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Related Articles Tagged with: Black Knight Delinquencies Home / Daily Dose / Serious Mortgage Delinquency Rates on the Rise Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more