May 2021

DS News Webcast: Tuesday 9/9/2014

first_img Is Rise in Forbearance Volume Cause for Concern? 2 days ago The Best Markets For Residential Property Investors 2 days ago 2014-09-08 Jordan Funderburk Related Articles Previous: Fed: Wealth Share of Richest Families Increasing Next: Shea Joins Birchwood Credit as SVP of Sales, Marketing Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Improvements in the labor market in 2014 have not translated to rapid housing market recovery this year, according to the Fannie Mae August 2014 National Housing Survey. Instead, data in the survey indicated that recovery for the housing market will be slow heading into 2015. The number of people surveyed who said they believe now is a good time to sell a home fell six percentage points from July to 64 percent, an all-time low since the monthly survey began in June 2010. The number of people who said now is a good time to buy a home also declined to 38 percent.The number of respondents surveyed who believe home prices will increase in the next 12 months stayed at 42 percent from July to August, while the percentage of respondents who say they think home prices will go down in the next year increased to 9 percent while the share of those who thought and mortgage rates will go up in the next 12 months fell to 50 percent. The average 12-month home price expectation also took a slight dip from July to August, to 2.1 percent.New York Attorney General Eric T. Schneiderman and the state’s lawmakers have made a big push in recent months to pass legislation to prevent so-called “zombie foreclosures,” which have become a significant problem in the state. The Attorney General’s Abandoned Property Neighborhood Relief Act introduced into the Senate earlier this year would require lenders to maintain and pay for upkeep on foreclosed properties that have been abandoned by their owners, and it would also require lenders to notify homeowners that they do not have to move out until the foreclosure process is complete – which could take months or even years. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Postcenter_img in Featured, Media, Webcasts Subscribe DS News Webcast: Tuesday 9/9/2014 Home / Featured / DS News Webcast: Tuesday 9/9/2014 About Author: Jordan Funderburk The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago September 8, 2014 599 Views Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

DS News Webcast: Thursday 9/4/2014

first_img  Print This Post Home / Featured / DS News Webcast: Thursday 9/4/2014 Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago DS News Webcast: Thursday 9/4/2014 Demand Propels Home Prices Upward 2 days ago Share Save Is Rise in Forbearance Volume Cause for Concern? 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Featured, Media, Webcasts Related Articles About Author: Jordan Funderburk September 3, 2014 649 Views center_img The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Firm to Sell $2.3 Billion in Nonperforming Loans for HUD Next: Avenue 365 Hires Tiberio as VP of Default Services The Office of the Comptroller of the Currency announced on Tuesday that it has published final guidelines for large financial institutions regarding the strengthening of governance and risk management practices for those institutions. Organizations covered by the guidelines are insured national banks, federal savings associations, and branches of foreign banks whose average total consolidated assets total $50 billion dollars or more. Institutions with average total consolidated assets totaling less than $50 billion dollars whose parent company controls an institution covered by the guidelines will also be affected.Covered institutions will now be required to control and manage risk-taking activities by following a written risk governance framework under the new guidelines. The guidelines also set forth a set of minimum standards to govern the overseeing of that framework by the institutions’ boards of directors. The finalized guidelines are essentially the same as those proposed by the OCC in January 2014. Changes were made to the final guidelines for the purposes of clarity and ensuring that board members were not given management responsibilities.The watchdog that oversees the money given under the Troubled Asset Relief Program has accused the U.S. Treasury Department of botching its supervision and reporting of TARP spending, and has called for more transparency. In a scalding letter to Treasury Secretary Jack Lew dated September 2, the Special Inspector General for the Troubled Asset Recovery Program, Christy Romero, stated that a SIGTARP audit found evidence that the Treasury Department modified “some of the data reported by the financial institutions” in a report on how TARP funds were spent. Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago 2014-09-03 Jordan Funderburk Subscribelast_img read more

Housing Affordability Is Up As National Homeownership Month Begins

first_img Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland.  Print This Post Housing Affordability Is Up As National Homeownership Month Begins Previous: Counsel’s Corner: Defending Against Litigation Stemming From New Loss Mitigation Rules Next: Rating Criteria Published For State Housing Finance Agency MBS Pass-Through Bonds June 2, 2015 933 Views Tagged with: Housing Affordability Housing Market NAHB National Association of Home Builders National Homeownership Month Housing Affordability Housing Market NAHB National Association of Home Builders National Homeownership Month 2015-06-02 Brian Honea Housing affordability is up nationwide due to low interest rates and home prices as National Homeownership Month begins in June, according to a recent release from the National Association of Home Builders (NAHB).The latest NAHB/Wells Fargo Housing Opportunity Index released in mid-May reports that about two-thirds of new and existing homes sold in the first quarter of 2015 were affordable to families that earned $65,800, which is the U.S. median yearly income, according to NAHB. Meanwhile, the median home price nationwide dropped by $5,000 from the fourth quarter of last year to the first quarter of 2015 (from $215,000 down to $210,000) while interest rates dropped from 4.29 percent down to 4.03 percent during the same time frame.In addition to lower prices and interest rates, low-down payment programs offered by Fannie Mae and Freddie Mac can help creditworthy borrowers who cannot afford a large downpayment qualify for a mortgage. These programs offer downpayments as low as 3 percent for eligible first-time homebuyers.”Now is a great time for consumers to buy homes,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Missouri. “Both first-time and move-up buyers can take advantage of these favorable market conditions and start building their American Dream.”Homeownership carries with it financial benefits, according to the NAHB, since it is often a primary source of net worth and a step toward accumulating long-term personal financial assets. Homeowners can also deduct mortgage interest and property taxes paid from their taxable income, which can result in thousands of dollars in savings, particularly in the first few years of a mortgage when the largest percentage of the monthly mortgage payment is made up of interest.Benefits of homeownership are not just financial, however, according to Woods.“Homeownership builds stronger communities, provides a solid foundation for family and personal achievement and improves the quality of life for millions of people,” Woods said. The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Housing Affordability Is Up As National Homeownership Month Begins Servicers Navigate the Post-Pandemic World 2 days ago Share Savecenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Brian Honea Demand Propels Home Prices Upward 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 Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more

Consumer Attitudes Toward Housing Improve Amid Positive Jobs Report

first_img Tagged with: Consumer Optimism Fannie Mae Housing Market National Housing Survey Related Articles Home / Daily Dose / Consumer Attitudes Toward Housing Improve Amid Positive Jobs Report Servicers Navigate the Post-Pandemic World 2 days ago June 8, 2015 1,369 Views  Print This Post in Daily Dose, Featured, Market Studies, News 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 Demand Propels Home Prices Upward 2 days ago 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. About Author: Xhevrije West Data Provider Black Knight to Acquire Top of Mind 2 days ago Amidst the positive May job report from the Bureau of Labor and Statistics (BLS), consumer attitudes concerning the housing market showed vast improvement for the month of May, according to results from Fannie Mae’s May 2015 National Housing Survey. These positive changes also support the case for an increase in housing activity this year.The BLS’s May jobs report showed an acceleration in average hourly earnings and reflected recent trends of firming personal income growth, revealing that the share of survey respondents reporting a significant increase in their household income climbed 4 percentage points to a near all-time high, Fannie Mae reported.“Things are looking up for housing,” said Doug Duncan, SVP and chief economist at Fannie Mae. “Those saying it is a good time to sell a house hit a survey high of 49 percent. Also, the percentage of consumers telling us their household income is significantly higher than 12 months ago grew six percentage points to 28 percent over the past two months.”While job growth continues to push meaningful income growth, the outlook for housing market growth is also improving, the GSE says. Of those surveyed, the share of respondents who say home prices will go up in the next 12 months increased to 49 percent, while the share who say home prices will go down dropped to 6 percent. Those who say it is a good time to buy a house rose back up to 66 percent, while those who say it is a good time to sell went up to a new survey high of 49 percent.Additionally, the survey found that 66 percent of respondents noted that they would prefer to buy rather than rent a home on their next move, while the share who would rent fell to 27 percent. The percentage of respondents who expect home rental prices to go up rose to 55 percent. Those who think it would be easy to get a home mortgage decreased to 50 percent, while those who think it would be difficult remained at 46 percent.The survey found that 47 percent of consumers say that mortgage rates will go up in the next 12 months. The average 12-month home price change expectation remained at 2.8 percent, while the average 12-month rental price change expectation rose to 4.3 percent. The share of respondents who say the economy is on the right track decreased by 4 percentage points to 38 percent, while those who say the economy is on the wrong track rose by 3 percentage points to 52 percent, the survey says.“We have found that these two indicators–good time to sell and income growth–are key drivers for the performance of the housing market and play an important role in our soon to be released Home Purchase Sentiment Index (HPSI),” Duncan said. “The increase in these indicators suggests our forecast of moderate improvement in the housing market in 2015 is on course and mirrors the near-term performance of other leading market data, including mortgage applications and pending home sales.”Click here to view Fannie Mae’s complete May 2015 National Housing Survey. The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Consumer Attitudes Toward Housing Improve Amid Positive Jobs Report Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Counsel’s Corner: Maryland’s Foreclosure Process Will Remain As Is For Foreseeable Future Next: Freddie Mac Lists Steps To Help Distressed Borrowers Avoid Foreclosure Relief Scams Subscribe Demand Propels Home Prices Upward 2 days ago Share Save Consumer Optimism Fannie Mae Housing Market National Housing Survey 2015-06-08 Brian Honealast_img read more

Survival in the SFR Market Requires Unorthodox Acquisition Strategies

first_img With more and more investors entering the single-family rental space, that means more competition. And more competition means getting creative when it comes to acquiring investment properties.”It comes down to looking outside the box,” said Brennan Reid, CEO of Florida-based Joyce Reid Capital. “Everyone knows how to buy REOs and knows how to buy off MLS. The thing is looking into other acquisition strategies.”Reid was a panelist in the Property Types and Acquisitions discussion of the Property Acquisition Lab of the inaugural Five Star Institute Single-Family Rental Summit in Las Vegas on Monday, October 12. Moderated by OwnAmerica CEO Greg Rand, the panel also included Sepehr Bekam, Principal with Dyson Investment Properties, Chris Crippen, Managing Director, US Residential Asset Fund, and Eddie Speed, President/Founder of Note School.”Strategic alliances are been very huge for us,” Reid said. “A lot of the leads we get actually stem from our management company, and we’re able to source for our management company and make it a win-win there as well. The probate market is something we’re really honing in on and it’s been very good to us.”Reid said he receives properties from his attorneys who have suggested the services of Reid’s company to the attorney’s client.”They’re sitting down hearing their clients problems or issues,” Reid said. “Maybe they inherited a home in Florida but they live in Texas. Maybe they don’t have the means or the management to take over that property. If someone inherits a home out of state, they don’t have the funds for the property taxes or to rehab the property. It’s just a headache and additional expenses they didn’t expect, and now they have to take on. So we’re offering an exit strategy for us to come in and close quick and pay cash. So either we can put that into a management program or we can offer cash for that asset to liquidate, buy it at a discount, and then sell it to our management partners for a buy and hold asset.””We’re not the only players in the game anymore. So we’re adapting and finding other ways of finding these people and getting to them first.”As a prime example of looking outside the box to acquire properties, Reid said funeral homes have even become a source from which to gain new assets. Reid said he tells the funeral homes that when they hear clients are looking to liquidate to please let him know, and his company will offer the funeral home client that option.”I was actually very reluctant at first, because it is a funeral home,” Reid said. “But actually what we find is they’re very grateful that we’re stopping by and offering our services, because they’re the ones sitting down with their clients and seeing this on a day-to-day basis, and they don’t have that option to give the client.”The many changes in the market just in the last three years have required a shift in strategy.”In 2012 to 2015, you saw that huge spike in the SFR market,” Reid said. “The general market’s going up, but the yields are going down. It also offers another incentive for the investors. You’re not buying on the yield, you’re buying on the appreciation of the asset. I think like it comes down to changing  your strategy and adapting to the markets themselves.”Reid said for about a three-year period between 2010 and up to 2013, his company was able to target homes, watch them through auction, and then buy them at auction. But with the REO market getting thin, more people are finding out about the auctions and getting in on them.”We’re not the only players in the game anymore,” Reid said. “So we’re adapting and finding other ways of finding these people and getting to them first. Whoever does the most marketing wins, so we really focus on doing as much volume in marketing and reaching sellers as we possibly can.”Editor’s note: The Five Star Institute is the parent company of DS News, DSNews.com, The MReport, and TheMReport.com. The Best Markets For Residential Property Investors 2 days ago Survival in the SFR Market Requires Unorthodox Acquisition Strategies Home / Daily Dose / Survival in the SFR Market Requires Unorthodox Acquisition Strategies Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 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 The Best Markets For Residential Property Investors 2 days ago October 12, 2015 1,210 Views Five Star Institute Five Star Single-Family Rental Summit Property Acquisition Strategies Single-Family Rental Market 2015-10-12 Brian Honea About Author: Brian Honeacenter_img Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. in Daily Dose, Featured, News Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Five Star Institute Five Star Single-Family Rental Summit Property Acquisition Strategies Single-Family Rental Market Servicers Navigate the Post-Pandemic World 2 days ago Previous: NY Fed President Dudley Reverses Interest Rate Hike Forecast Next: Is the Single-Family Rental Market ‘Viable’? Subscribelast_img read more

Fitch: FHLB-Funded mREIT Borrowers are Facing a Key Decision

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago January 19, 2016 1,298 Views Share Save Tagged with: Federal Home Loan Bank Membership Fitch Ratings Mortgage REITs About Author: Brian Honea Sign up for DS News Daily Mortgage real estate investment trusts (mREITS) that currently receive funding from the Federal Home Loan Banks (FHLBanks) will see their funding phased out after five years from the effective date of the FHFA’s final rule for FHLB membership, which was announced on January 12.The new rule cuts off the possibility of FHLBank membership for non-bank financial institutions such as hedge funds, investment banks, and equity REITs, keeping in line with the FHLBanks’ mandate of serving the housing finance market by extending credit to commercial banks, credit unions, and savings/loan institutions.FHLB system’s traditional mandate is to serve the US housing finance market by extending credit to commercial banks, credit unions, and savings/loan institutionsThose mREITs which received captive insurance subsidies from FHLBanks prior to September 2014, when the FHFA originally published the membership rule, will be eligible to receive funding for another five years from the date the rule becomes effective, which will be 30 days after it is published in the Federal Register. With ample time left to find replacement funding, mREITs are faced with a key decision, according to Fitch Ratings: Go with either low-cost, short-term repo funding with a shorter duration and increased liquidity risk, or long-term borrowings that include increased funding costs and affect profitability.“From a credit risk perspective, we would view the latter more favorably because of the benefit to asset-liability duration matching,” Fitch stated.Fitch Ratings believes that an mREIT such as Ladder Capital used the FHLBank system for approximately 42 percent of its funding as of September 30, 2015, will benefit from the five-year phase out provision of FHFA’s final rule. While many REITs have used the FHLBank system for a significant portion of its funding, the total FHLBank advances for the 10 largest mREITS were just 10.6 percent of their overall debt funding. The phasing out of borrowing from the FHLBank system “incrementally weakens the diversification of (mREIT) funding sources,” according to Fitch.The establishment of captive insurance subsidies gave nonbank financial institutions greater access to FHLBank membership starting in 2012, and 2015 saw a significant ramp-up, according to Fitch. At least 23 insurers (out of 7,255 institutions that were members of the FHLBank system, 346 of which were insurance companies) were captive insurance subsidiaries of mREITs, while FHLBank advances increased from 11.6 percent of par value at year-end 2011 up to 15.6 percent of par value by September 30, 2015, according to Fitch. Servicers Navigate the Post-Pandemic World 2 days ago Federal Home Loan Bank Membership Fitch Ratings Mortgage REITs 2016-01-19 Brian Honea Fitch: FHLB-Funded mREIT Borrowers are Facing a Key Decision Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Fitch: FHLB-Funded mREIT Borrowers are Facing a Key Decision Related Articles Previous: Economist: TRID is Not Affecting Housing Market Potential Next: RMBS Settlement Cuts Into Goldman Sachs’ Profits Demand Propels Home Prices Upward 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. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Flagstar Bank Names New Diversity and Inclusion Leader

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Diversity Flagstar Bank HOUSING mortgage About Author: Nicole Casperson in Daily Dose, Featured, News  Print This Post The Best Markets For Residential Property Investors 2 days ago Related Articles Diversity Flagstar Bank HOUSING mortgage 2018-02-05 Nicole Casperson Flagstar Bank Names New Diversity and Inclusion Leader Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily 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] Home / Daily Dose / Flagstar Bank Names New Diversity and Inclusion Leader Previous: Home Point Financial Announces Executive Team Additions Next: Quintairos, Prieto, Wood & Boyer, P.A. Hires New Directorcenter_img Servicers Navigate the Post-Pandemic World 2 days ago Flagstar Bank has announced that Mary Mbiya will serve as program manager of its diversity and inclusion initiatives. Mbiya has over 18 years’ experience in financial services, with five years at Flagstar where she most recently served as VP and Senior Branch Manager in Rochester.“I’m fortunate that Flagstar has already created a template for diversity and inclusion,” said Mbiya. “I hope to use my knowledge of the bank and the communities we serve to make a significant impact both inside and outside the company.”In her new role, she is responsible for leading further development and implementation of Flagstar’s strategy for diversity and inclusion. According to Flagstar, the company has already demonstrated corporate leadership in diversity and inclusion, both as a signatory to the CEO Action for Diversity & Inclusion pledge, and as a winner of the MBA’s Residential Leadership Award for Organizational Diversity and Inclusion.Mbiya has a long record of community involvement. She has been a member of the board of directors of the Rochester Regional Chamber of Commerce since 2012 and recently served as the 2017 chair of the board and as a board member of the Rochester Regional Chamber Charity Fund.She is passionate about using her financial expertise to help others and pursues her passion as a facilitator for financial focus classes at the Rochester Area Neighborhood House and an instructor in financial literacy to students in the Pontiac area. Mbiya also serves on the board of the Paint Creek Center for the Arts, co-chairs the PCCA Art and Apples Festival, and is a member of the Community Board for Meadow Brook Theatre. 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 Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago February 5, 2018 2,271 Views Share Savelast_img read more

Delinquencies Fall While Prepayments Rise

first_img Servicers Navigate the Post-Pandemic World 2 days ago Delinquency Prepayment Refinance 2019-09-09 Seth Welborn 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 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. Sign up for DS News Daily Previous: What’s Next for Housing Finance Reform? Next: Mnuchin: ‘We Will Restructure Fannie Mae and Freddie Mac’ Data Provider Black Knight to Acquire Top of Mind 2 days ago September 9, 2019 1,083 Views Tagged with: Delinquency Prepayment Refinance Related Articles Demand Propels Home Prices Upward 2 days agocenter_img Delinquency rates and serious delinquencies both fell in July, as the prepayment rate increased, according to the latest Mortgage Monitor report from Black Knight. The delinquency rate fell 7.3% while serious delinquencies fell by 11,000 month-over-month. Meanwhile, prepayments increased by 25.7%, which Black Knight notes is the latest, and “loudest,” sign of increased refinance incentive in the market. Black Knight Data & Analytics President Ben Graboske explains that falling interest rates and a subsequent increase in rate/term refinances has worked in servicers’ favor.“As we’ve reported in the past, retention rates tend to be higher for rate/term refinances than any other type of transaction, and that’s just what we observed as of the end of Q2 2019,” said Graboske. “Falling rates and an abundance of refinance candidates were primary drivers behind servicers retaining 24% of all refinancing borrowers – the highest such retention rate since late 2017 – and 30% of rate/term borrowers specifically. While losing the business of more than two out of every three rate-driven refinance customers is not exactly extraordinary performance, it is significantly better than the sub-20% retention rates seen throughout much of 2018. The good news is that interest rates are at three-year lows, and anecdotal evidence suggests that in recent weeks, mortgage lenders had been inundated with inbound refinance business that’s relatively easy to retain.”Additionally, tappable equity rose for the second quarter in a row, gaining $335 billion in Q2 2019, now at an all-time high of $6.3 trillion.“The not-so-good news is that – in an environment of record-high levels of tappable equity and low interest rates that makes cash-out refinances an affordable option for accessing that equity – servicers are retaining just one in five cash-out borrowers,” Graboske adds. “Even though rate-term refis are surging right now, cash-outs still made up some 62% of all refinances in the second quarter. Add to that the fact that borrowers refinancing out of 2012-2017 vintage loans account for nearly half of all refis so far in 2019, nearly 80% were cash-out transactions.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Delinquencies Fall While Prepayments Rise Home / Daily Dose / Delinquencies Fall While Prepayments Rise The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Investment, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago About Author: Seth Welborn Subscribelast_img read more

Former Freddie Mac CEO on Limiting GSE Risk Exposure

first_img Share Save About Author: Seth Welborn  Print This Post Don LaytonAfter instigating the first modern Credit Risk Transfer (CRT) in 2013, CRT has become a standard practice at the GSEs, but many seem to misunderstand their purpose and mission. In a series of papers authored by former Freddie Mac CEO and Harvard Joint Center for Housing Studies (JCHS) Senior Industry Fellow Don Layton, Layton attempts to explain the purpose and role of CRT. What specific issues do CRT address, and how successful have they been?In the first paper, titled Demystifying GSE Credit Risk Transfer: Part I – What Problems Are We Trying to Solve?, Layton begins at the 2008 financial crisis, and the beginning of conservatorship. With CRT, Layton notes, instability like in 2008 is less likely, and the system allows the mortgage system to operate more efficiently.“After that first transaction in 2013, it took just a few years for CRT to mature and become a core component of the reformed GSE business model, today putting about 70 percent of all new single-family mortgage credit risk into the hands of private capital,” said Layton. “This dramatically reduces the potential for the GSEs to become a source of systemic instability in the future, as they had become in 2008.”“CRT has become the linchpin for other improvements in the US system of housing finance,” Layton continues.Layton’s paper lists the major GSE challenges that he says CRT successfully addresses, including systematic risk, taxpayer exposure, and capital costs. A major question Layton asks is, “Can systemic risk be reduced?” According to his paper, the answer is yes, however, this takes time.”It’s not theory at this point, as ballpark one-quarter to one-third of the credit risk exposure (as measured by government formulae) of the entire single-family mortgage book of the two GSEs has already been sold off to CRT investors,” Layton says. “It will just take some years for the rollover of the mortgages to increase the systemic risk reduction to a much higher level, hopefully reaching 70%-plus by five or so years.”One of the GSE’s more recent CRT programs is Fannie Mae’s Connecticut Avenue Securities (CAS) transactions. According to Fannie Mae, the CAS issuer strategy works to build program in a sustainable way to promote liquidity. Similiarly, the GSEs are looking to expand liquidity through the Uniform Mortgage-Backed Security (UMBS), which launched in June 2019.The UMBS, according to Renee Schultz, SVP, Capital Markets, Fannie Mae, is “the result of close collaboration with FHFA, Freddie Mac, Common Securitization Solutions, and hundreds of housing finance stakeholders and we congratulate all involved on this achievement,” said Renee Schultz, SVP, Capital Markets, Fannie Mae in a statement. Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Low-End Rents Prop Up Single-Family Rent Growth Next: Empire State Tax Changes Pose Difficulties for Residential Investors CAS CRT Fannie Mae Freddie Mac UMBS 2020-01-21 Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Former Freddie Mac CEO on Limiting GSE Risk Exposure Former Freddie Mac CEO on Limiting GSE Risk Exposure Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agocenter_img January 21, 2020 2,575 Views in Daily Dose, Featured, Government, News, Secondary Market Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: CAS CRT Fannie Mae Freddie Mac UMBS 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 The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Habitat for Humanity to Congress: ‘Act Now for Housing’

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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. 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 Subscribe Home / Daily Dose / Habitat for Humanity to Congress: ‘Act Now for Housing’ Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 2020-11-05 Christina Hughes Babb Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago About 30-40 million American homeowners and renters face foreclosure or bankruptcy and loss of housing when protective moratoria expire December 31, studies show. The global nonprofit Habitat for Humanity is demanding that Congress return to Washington, D.C., as soon as possible “to take urgent action on housing stability and investment.”Through its “Cost of Home national advocacy campaign,” Habitat details a set of “immediate priorities,” including mortgage and rental payment assistance, which they say would “stave off a looming eviction and foreclosure crisis,” adding that such an event would disproportionately impact communities of color.”The American people have been through a lot with the pandemic uprooting any semblance of normal life and a divisive election that has left us all exhausted,” said Jonathan Reckford, CEO of Habitat for Humanity International. “But we can’t afford to take a break. Millions of families are facing the very real and very dangerous challenge of a future without adequate housing. While we don’t know yet who won every seat, we do know that our current elected leaders still have a job to do.”We need to come together and focus our energies on a crisis taking place in homes across all of our nation, red and blue, urban and rural. There is no time to waste. It’s time to act now for housing. Policymakers at all levels of government must revive their efforts to both provide immediate housing stability and invest in housing as the foundation to long-term economic and societal recovery. At a time when a safe and decent home has never been more important, millions of American families need action to make the cost of home something we all can afford.”The nonprofit also is asking new and reelected policymakers at all levels of government to treat housing as a “driver of economic recovery” and as infrastructure. Habitat asks legislators to keep as much in mind as they set their 2021 agendas.Congress can do so “by including robust funding to build affordable homes, as well as ensuring equitable access to healthy housing and communities of opportunity,” according to a Habitat press release.Thursday, “525 Habitat for Humanity organizations from all 50 states, Puerto Rico and Washington, D.C., sent letters to leaders of Congress and the Executive Branch calling for immediate action on urgent housing relief,” according to its press release. “Habitat is committed to continuing its housing advocacy through working with elected officials at all levels of government to find and implement policy solutions that will enable access to affordable homes for 10 million people in the U.S. over the course of the 5-year Cost of Home campaign.” in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago About Author: Christina Hughes Babb November 5, 2020 1,211 Views Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Habitat for Humanity to Congress: ‘Act Now for Housing’ The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Previous: Nonprofit Calls on Policymakers to ‘Act Now for Housing’ Next: Meet the New Chair of Fannie Mae’s Board of Directorslast_img read more