Month: May 2021

Spring Recovery: Dead on Arrival?

first_img The Best Markets For Residential Property Investors 2 days ago April 25, 2014 1,078 Views in Daily Dose, Featured, Headlines, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Spring Recovery: Dead on Arrival?  Print This Post The Best Markets For Residential Property Investors 2 days ago Market analysts are dialing back on their expectations for the housing sector this year following reports of continued sluggishness in what should have been the start of a busier season.In a report issued earlier this week, Fitch Ratings announced it is tapering its forecast for 2014 in acknowledgement of what has so far been a “subpar spring selling season.”Sales of both new and existing homes in March fell short of expectations, dashing optimistic projections of a rebound following the end of an unusually harsh winter. Housing starts also disappointed as homebuilders remain concerned about the shape of the market.Looking past spring, Fitch’s report focuses on expected growth throughout the rest of the year, with housing starts and new home sales forecast to see percentage gains in the mid-teens. Average median new home prices, meanwhile, are expected to rise about 3.5 percent, a substantial moderation from growth over the past two years, which was largely seen as unsustainable.However, even with early numbers coming up short, with two months left in the season, some commentators are saying it’s too early to write off spring as a disappointment just yet—including Bob Curran and Robert Rulla, directors and homebuilding analysts at Fitch.“The biggest message that we put out was that we do see so far … that [spring data] is disappointing relative to expectations,” Curran said. “[I]t was a very good spring last year, so the comparisons are kind of tough.”Over the coming months, Curran says he expects to see more favorable year-over-year comparisons.Furthermore, while data released so far might not be stacking up well against forecasts, Rulla sees little reason to be skeptical about summer projections: “There’s a little bit more caution given what transpired the first three months of the year, but we think that there’s still going to be growth in the overall housing market in 2014.”As far as March’s low sales numbers are concerned, one thing to keep in mind is that inventory remains limited across the country and is especially weak in certain areas.“Interpreting low sales volume in March as bearish—we think that’s misguided,” said Mike Simonsen, co-founder and CEO of real estate data firm Altos Research. “It doesn’t tell you anything about the actual demand for those homes. You can’t tell how many people want to buy homes by how many are sold.”By Altos’ measure, the housing cycle is set to peak at the end of June before falling off into the fall and winter, as it does every year. Using that “map,” Simonsen says the company has good visibility on what the year as a whole should look like and predicts a 10 percent increase—an optimistic outlook compared to most others.Meanwhile, at Clear Capital, the company is terming the latest slowdown in price changes “the new normal.”“Even though we’ll see improved housing metrics across the board this summer, it won’t be the banner year that 2013 was,” said Dr. Alex Villacorta, VP of research and analytics for the company’s Data Division. “I think it’ll be more measured, [and] I think it’ll be more localized … it may not show up in the national housing metrics numbers, but it certainly will be in certain markets.”For the near future, Villacorta says the numbers to watch will be those in the mid-tier housing segment, where the most housing activity traditionally takes place. That happens to be a particularly weak area, though he believes even a small boost in the next month or two will help put the market back on more stable footing compared to the year’s early months.“I think just seeing the signs of activity may turn the tides of confidence in consumers,” he said. “Probably in about 45 days, we’ll know what’s happening in spring fully.” Tagged with: Clear Capital Fitch Ratings Home Prices Home Sales Recovery Spring Buying Season Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Subscribecenter_img Related Articles Previous: Valuation Vision Offers New Property Valuation Solution Next: FHFA Settles with Barclays Bank for $280 Million Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Clear Capital Fitch Ratings Home Prices Home Sales Recovery Spring Buying Season 2014-04-25 Tory Barringer Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Spring Recovery: Dead on Arrival? The Week Ahead: Nearing the Forbearance Exit 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 agolast_img read more

Foreclosure Numbers Still Elevated in Florida Despite Substantial Declines

first_img 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 Tagged with: completed foreclosures CoreLogic Florida Foreclosure Inventory Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Sign up for DS News Daily in Daily Dose, Featured, Foreclosure, News Five years after the foreclosure peak and seven years after the start of the financial crisis, Florida remains the leader in many prominent foreclosure metrics even after months of substantial declines, according to CoreLogic’s June 2015 National Foreclosure Report released this week.Florida’s 12-month sum of completed foreclosures for the period ending June 30, 2015 (101,938) represented nearly one-fifth of the national total for that period (526,189). The state with the second-most, Michigan, had less than half of Florida’s total – 46,451. Florida’s foreclosure inventory rate for June (2.7 percent) was more than double the national rate (1.2 percent), and the serious delinquency rate in the Sunshine State in June (6.3 percent) was considerably higher than the national rate of 3.5 percent for the month.Two of the top three metro areas in the category of 12-month sum of completed foreclosures were located in Florida: Tampa-St. Petersburg-Clearwater was first with 16,750 and Orlando-Kissimmiee-Sanford was third with 12,970. Together, those two metro areas accounted for about 5.7 percent of all the nation’s completed foreclosures for that 12-month period.”The housing crash hit Florida particularly hard,” CoreLogic Chief Economist Frank Nothaft said. “On average in Florida, home values fell more than 50 percent from the 2006 peak. Even with the appreciation over the past four years, the typical home is still 29 percent below the 2006 peak according to the CoreLogic Home Price Index. In addition, the Florida unemployment rate more than doubled during the Great Recession, rising from 4.9 percent in December 2007 to 11.2 percent in December 2009. These economic forces led to the record level of foreclosures in the state. Because of its large population (as of 2014, Florida is the third most populous state, behind California and Texas), that meant there were a large number of foreclosures. The foreclosure inventory still remains large, in part because of the severity of the foreclosure crisis in the state and in part because of the lengthy judicial foreclosure process.”Despite those elevated foreclosure numbers, the housing market in Florida has been steadily improving. Florida had the largest decline in year-over-year foreclosure inventory rate in June (47.7 percent).  By comparison, in June 2014, 5 percent of the residential homes in Florida were in some state of foreclosure. Also, the 12-month some of foreclosures in Florida for the period ending June 30, 2015, represented a 17 percent decline from the 12-month period ending a year earlier on June 30, 2014.Nationwide, completed foreclosures ticked up by 5 percent in June up to 43,000 for the month; still, they were down by 15 percent from June 2014. Completed foreclosures averaged about 21,000 per month before the crisis, from 2000 to 2006.”I expect that the number of completed foreclosures will decline on a year-over-year basis, even though some months may have an uptick,” Nothaft said. “The expected decline in completed foreclosures reflects the gradually improving housing market conditions and the declining number of loans in foreclosure proceedings.” Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles 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 / Foreclosure Numbers Still Elevated in Florida Despite Substantial Declines The Best Markets For Residential Property Investors 2 days ago August 12, 2015 1,038 Views Share Save Foreclosure Numbers Still Elevated in Florida Despite Substantial Declines completed foreclosures CoreLogic Florida Foreclosure Inventory 2015-08-12 Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Housing Demand Shifting Toward Central Parts of Cities Next: Majority of GSE HAMP Permanent Modifications Remain Active Data Provider Black Knight to Acquire Top of Mind 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 Subscribelast_img read more

Mortgage Rates Climb for the Second Time This Year

first_img About Author: Xhevrije West Demand Propels Home Prices Upward 2 days ago Interest rates for mortgage loans, which continue to remain at historic lows, saw another increase for the second time this year.Freddie Mac’s Primary Mortgage Market Survey (PMMS) showed that mortgage rates rose for the second time this year “making mortgage rates very attractive for the upcoming spring home buying season.”The report showed that the 30-year fixed mortgage rate averaged 3.68 percent with an average 0.5 point for the week ending March 10, 2016. Last week the 30-year rate averaged 3.64 percent.”The 10-year Treasury yield ended the survey week exactly where it started, however the solid February employment report boosted the yield noticeably on Friday and Monday,” said Sean Becketti, Chief Economist, Freddie Mac. “Our mortgage rate survey captured the impact of this temporary increase in yield, and the 30-year mortgage rate rose 4 basis points to 3.68 percent. This marks the second increase this year. Nonetheless, the mortgage rate remains 33 basis points lower than its end-of-2015 level.”The February 2016 Employment Summary from the Bureau of Labor Statistics (BLS) showed a mixed bag in the U.S. labor market. While February’s job gains were solid at 242,000 and the labor force participation rate shot up to a 15-month high, a noticeable weakness in the labor market is wage growth.Amid all the positives in the February employment summary, however, the average hourly earnings for all employees declined by 3 cents down to $25.35 after an increase of 12 cents in January. The average workweek also declined in February by 0.2 hours down to approximately 34.4 hours. The lack of wage growth combined with house price appreciation has caused some concenrs as far as affordability in the housing market, according to Fannie Mae chief economist Doug Duncan.“On the housing front, builders continue to hire more workers, but at a steadily slowing pace since last November, suggesting little relief to one factor underlying extremely tight inventories,” Duncan said. “Our forecast of a more modest gain in home sales this year reflects our concern of declining housing affordability from income growth that is trailing home price appreciation. Today’s jobs report is consistent with our view of an affordability-constrained housing expansion.”According to Freddie Mac, the 15-year FRM averaged 2.96 percent this week with an average 0.5 point, up from last week when it averaged 2.94 percent. The 15-year FRM averaged 3.10 percent a year ago at this time.The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.92 percent this week with an average 0.4 point, the report showed. Last week, the five-year Treasury-indexed hybrid ARM averaged 2.84 percent and one year ago, it averaged 3.01 percent. Related Articles The Best Markets For Residential Property Investors 2 days ago Previous: DS News Webcast: Friday 3/10/2016 Next: Docutech Hires New EVP of eStrategies Servicers Navigate the Post-Pandemic World 2 days ago Is Rise in Forbearance Volume Cause for Concern? 2 days ago Home / Featured / Mortgage Rates Climb for the Second Time This Year Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 11, 2016 1,234 Views Tagged with: Freddie Mac Mortgage Rates Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img The Best Markets For Residential Property Investors 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. in Featured, News Share Save  Print This Post Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Mortgage Rates Climb for the Second Time This Year Freddie Mac Mortgage Rates 2016-03-11 Brian Honea Subscribelast_img read more

Mnuchin: GSE Reform On Hold

first_img Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected] Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Fannie Mae Freddie Mac GSE Steve Mnuchin Treasury Department 2017-09-15 Joey Pizzolato Share Save The Best Markets For Residential Property Investors 2 days ago September 15, 2017 1,879 Views About Author: Joey Pizzolato The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Back in June, the U.S. Senate Committee on Banking, Housing, and Urban Affairs, spearheaded by its Chairman, Senator Mike Crapo (R-Idaho), held a hearing on the necessity of reform for the government sponsored enterprises, Fannie Mae and Freddie Mac. Ginnie Mae’s model was a good starting point, he said.“Fannie and Freddie are currently earning profits, but if the housing market experiences a downturn, and at some point, it will, taxpayers could again be on the hook for many billions of dollars,” Crapo said in his prepared remarks. “Reform is urgently needed, and the Committee is actively exploring a variety of options.”The most important issues at hand, according to Crapo, were taxpayer protections, and preserving the interest of lenders, investors, and consumers.Now, however, Secretary of the Treasury Steve Mnuchin is of the opinion that both companies aren’t ready to be released from government’s conservatorship, according to a recent report by Bloomberg.Mnuchin told a panel at a Politico conference that the GSEs would continue turning over profits to the Treasury for the time being, and that any reform would most likely be put on the back burner until 2018.Since 2012, when the government changed the terms of Fannie and Freddie’s bailout from a rate of 10 percent dividend to virtually all the GSE’s profits, the two mortgage giants have paid the Treasury Department over $270 billion dollars in dividends. Mnuchin, after the conference, told reporters he expected dividends to continue to be paid.There has pressure from investors and hedge funds to secure a portion of that profit. According to Bloomberg, some firms, including Fairholme Funds Inc., Paulson & Co. and Perry Capital, have brought suit against the government, and various lobbying efforts have been prevalent in Washington to encourage quicker reform to remove the GSEs from government conservatorship.Six Senate Banking Committee Democrats took a less extreme stance in a letter sent to the Treasury Department and the Federal Housing Finance Agency on Tuesday, urging the agency to reduce dividend payouts and allow the GSEs to build capital, which they said would ultimately protect consumers—and the government—in the event another bailout is required.You can read the full letter below:  Print This Post Previous: LenderLive Announces New Chief Financial Officer Next: Bank of America is Taking on the IRS Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles in Daily Dose, Featured, Headlines Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Mnuchin: GSE Reform On Hold Home / Daily Dose / Mnuchin: GSE Reform On Hold Tagged with: Fannie Mae Freddie Mac GSE Steve Mnuchin Treasury Departmentlast_img read more

Dodd-Frank Rollback to Impact PACE ABS Market

first_img Servicers Navigate the Post-Pandemic World 2 days ago Subscribe in Daily Dose, Featured, Government, Magazine, News Related Articles Share Save An analysis of the Dodd-Frank Act modifications by Moody’s has found that the amendment to the federal Truth in Lending Act (TILA) passed by the U.S. Senate last week will help clarify certain federal consumer protection responsibilities for participants in the Property Assessed Clean Energy (PACE) markets and reduce the uncertainty around legal risks for future asset-based securities (ABS) in this sector.The analysis, which was released on Monday said that it was likely the legislation would only directly affect new PACE assessments as changes to TILA are part of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which would roll back portions of the Dodd-Frank Act. “To become law, the TILA provision must survive any further debate about it in the US House of Representatives or Senate,” the analysis said.Despite this step in the right direction, lenders in the PACE market remain concerned on two counts. Firstly, under the new legislation, the Consumer Financial Protection Bureau (CFPB) will prescribe and enforce regulations requiring PACE assessment originators to make a good faith determination that homeowners have the ability to repay the assessments before originating them. But, the details and timings of CFPB’s actions are not specified.Secondly, it remains unclear whether certain federal and state consumer protection laws apply to PACE assessments as there is legal uncertainty about whether PACE assessments are “consumer credit transactions” and therefore subject to TILA. The report said that although a federal court recently found that TILA does not apply to PACE1, the lower court ruling was vulnerable to challenge on appeal or in fresh litigation. “The continued uncertainty gives rise to the risk that PACE assessments may inadvertently be originated in violation of TILA,” the Moody’s report said.Looking at the future the analysis found that if lawmakers revised the TILA ability-to-repay provisions to explicitly apply to new PACE assessments, originators in this market would take additional steps to determine homeowners’ ability to repay for the assessments, thus reducing potential avenues for future lawsuits. These changes could reduce incentives for homeowners to sue by lowering their perceived likelihood of success. Tagged with: consumers Dodd-Frank Act Legislation Lenders Moody’s PACE Servicers TILA The Best Markets For Residential Property Investors 2 days ago Previous: Fannie Mae Streamlining Processes With Black Knight’s DMRS Tool Next: Single-Family Rental Summit Dives Deep Into Investment Opportunities About Author: Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Home / Daily Dose / Dodd-Frank Rollback to Impact PACE ABS Market Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Dodd-Frank Rollback to Impact PACE ABS Market The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago consumers Dodd-Frank Act Legislation Lenders Moody’s PACE Servicers TILA 2018-03-19 Radhika Ojha  Print This Post The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 19, 2018 2,692 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

FHFA: Fannie, Freddie Foreclosure Preventions Top 4M in Q4

first_imgHome / Daily Dose / FHFA: Fannie, Freddie Foreclosure Preventions Top 4M in Q4 The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Foreclosure, Journal, News FHFA: Fannie, Freddie Foreclosure Preventions Top 4M in Q4 Share Save Servicers Navigate the Post-Pandemic World 2 days ago Borrowers Fannie Mae FHA Loans FHFA Forebearance Modification Foreclosure Foreclosure Prevention Freddie Mac hurricanes Loan Modifcation REO va loans 2018-03-23 Alison Rich March 23, 2018 3,146 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: 10 Cities With the Best and Worst Credit Scores Next: The Week Ahead: Measuring Home Affordability About Author: Alison Rich The Best Markets For Residential Property Investors 2 days ago Subscribe Servicers Navigate the Post-Pandemic World 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Federal Housing Finance Agency (FHFA) rolled out its fourth-quarter Foreclosure Prevention Report, which shows that Fannie Mae and Freddie Mac zipped up 67,569 foreclosure prevention actions in the fourth quarter of 2017. Across the board, that brings the number of homeowners helped to 4,040,258 since the start of the conservatorships in September 2008, the report says. Of those actions, 3,357,722 helped struggling borrowers remain in their homes, including 2,150,946 permanent loan modifications. Nineteen percent of Q4 loan mods shaved borrowers’ monthly payments by more than 30 percent.Forbearance plans vaulted to 24,935 during Q4—they totaled 1,212 in the previous quarter. FHFA attributes the notable leap to disaster-related forbearance available to homeowners affected by Hurricanes, Harvey, Irma, and Maria in Texas, Florida, and Puerto Rico. Various mortgage relief options are offered to homeowners affected by natural disasters, and numerous homeowners tapped into them after these three devastating storms.The percentage of 60-plus-days delinquent loans rose from 1.32 percent to 1.65 percent at the end of Q4, the FHFA reports. The increase largely stems from the impact of those aforementioned hurricanes. Fannie and Freddie’s fourth-quarter 2017 REO inventory slid by 9 percent, the report said.Some of the other foreclosure prevention metrics mentioned in the fourth-quarter report are as follows:Forty-two percent of the Q4 mods were principal forbearance modifications. Those with extend-term only also made up 42 percent of all loan modifications during the fourth quarter. In the short sales and deeds-in-lieu category, Fannie and Freddie completed 3,119 of them during Q4, bringing that total to 682,536 since the conservatorships started.The enterprises’ serious delinquency rate rose to 1.18 percent at the close of Q4. For comparison’s sake, Federal Housing Administration (FHA) loans totaled 4.8 percent and Veterans Affairs (VA) loans amounted to 2.4 percent. The total for all loans (i.e., industry average) was 2.9 percent.Foreclosure starts broadened 6 percent to 45,203, while third-party and foreclosure sales fell 14 percent to 13,448 in Q4. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Tagged with: Borrowers Fannie Mae FHA Loans FHFA Forebearance Modification Foreclosure Foreclosure Prevention Freddie Mac hurricanes Loan Modifcation REO va loans Alison Rich has a long-time tenure in the writing and editing realm, touting an impressive body of work that has been featured in local and national consumer and trade publications spanning industries and audiences. She has worked for DS News and MReport magazines—both in print and online—since they launched. Sign up for DS News Daily last_img read more

The Future of Credit Risk Transfers

first_img Fannie Mae and Freddie Mac’s credit risk transfer programs (CRT), initiated in 2013, are likely to experience declines due to rising interest rates and declining origination volumes, according to research from the Urban Institute. However, Laurie Goodman of the Urban Institute calls the programs “a huge success” and foresees potential growth “from outside GSE space” in the future. Since the program began, the GSEs together have transferred part of the credit risk on a total of $2.1 trillion in acquisitions. Fannie and Freddie “have obtained coverage for up to 3.26 percent of losses on the $2.1 trillion of covered mortgage loans,” Goodman stated in her research paper, “Credit Risk Transfer: A Fork in the Road.” She continued to explain, “This is a significant amount of mortgage risk in a sector where Basel capital standards traditionally assigned 4 percent capital requirements.” Goodman attributed the growth in the program to “continuous program innovation” and said she expects “the GSEs will continue to broaden their offerings.” However, she added, “This rapid growth of the CRT market cannot continue because collateral volumes were down in 2017 and are expected to decline further in 2018.” Goodman pointed out four opportunities for growth in CRT at the GSEs: “(1) increasing the collateral base on new business that they target for CRT, (2) raising the detachment point on the existing CRT transactions to pick up more of the “catastrophic” risk, (3) laying off more first-loss risk, or (4) targeting the legacy book of business.”The first two options “make little economic sense for the GSEs, as they provide little protection,” according to Goodman. Goodman pointed out that the GSEs have already laid off most of their 30-year loans with loan-to-value ratios greater than 60 percent. Most of what is left is “low risk”—either shorter-term or lower-LTV loans. The GSEs have purchased protection against the first 4 percent of losses for credit risk transfers of loans with LTVs between 60 and 80 percent and against the first 4.25 percent of losses for CRTs of loans with LTVs between 80 and 97 percent. This, Goodman said, “is more than sufficient to protect against a scenario similar to the Great Recession.”With little room left for the GSEs to expand in the CRT space, Goodman suggested future CRTs will come largely from other sources, primarily mortgage insurers and possibly banks. If offered capital relief on the loans, it could be beneficial for banks to engage in CRTs. If commercial banks could unload some credit risk, “It would reduce the volatility of earnings and allow banks to hold larger mortgage positions in portfolio,” Goodman explained. However, “We believe mortgage insurers are the most promising area for CRT expansion,” Goodman said. “This expansion is valuable for the mortgage insurers and for the GSEs.”For mortgage insurers, expanding in CRTs “is economic, it provides capital relief, and it reduces earnings volatility,” Goodman said. Before 2017, only one mortgage insurance company was participating; now three of the six active mortgage insurers are participating, and Goodman expects more to follow.To read more about credit risk transfer, click here. Share Save Tagged with: Credit Risk Transfer CRT Fannie Mae Freddie Mac GSEs Servicers Navigate the Post-Pandemic World 2 days ago June 26, 2018 4,074 Views Demand Propels Home Prices Upward 2 days ago Credit Risk Transfer CRT Fannie Mae Freddie Mac GSEs 2018-06-26 Krista Franks Brock Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Government, Journal, Loss Mitigation, News, Secondary Market About Author: Krista Franks Brock Previous: HUD Greenlights $5 Billion Texas Disaster Recovery Plan Next: The Evolution of the REO Landscape Related Articles  Print This Post Demand Propels Home Prices Upward 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago 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 The Week Ahead: Nearing the Forbearance Exit 2 days ago The Future of Credit Risk Transfers Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. Home / Daily Dose / The Future of Credit Risk Transfers Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more

Ginnie Mae’s Guidelines to a Healthy Mortgage Market

first_img  Print This Post Home / Daily Dose / Ginnie Mae’s Guidelines to a Healthy Mortgage Market Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles About Author: Donna Joseph in Daily Dose, Featured, Government, Media, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Ginnie Mae’s Guidelines to a Healthy Mortgage Market Sign up for DS News Daily Ginnie Mae Michael Bright Mortgage Market Mortgage-Backed Securities 2018-11-16 Donna Joseph The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Built Technologies Appoints New SVP of Revenue Next: Rebuilding Puerto Rico Share Save Tagged with: Ginnie Mae Michael Bright Mortgage Market Mortgage-Backed Securities November 16, 2018 2,400 Views In an attempt to strengthen and safeguard the mortgage-backed securities market, Ginnie Mae released a new All Participants Memorandum (APM 18-07) with guidelines and steps the agency will undertake to evaluate the credit strength of new Issuers, implements new notification requirements for issuers engaged in certain subservicer advance or servicing income agreements. The APM 18-07 also codifies the company’s ability to impose additional financial or operational requirements on program participants when warranted by market conditions. “These enhancements add to the factors Ginnie Mae will consider as we keep pace with an evolving mortgage market, protect taxpayers, and ensure that important differences in risk among issuers and servicers are properly accounted for,” said Michael Bright Ginnie Mae EVP and COO. “Our goal continues to be the assurance of a safe and sound program as well as a healthy mortgage-backed security.”Per the APM 18-07, in order to monitor risks, the agency will require servicers to notify Ginnie Mae if any arrangements are made to finance Ginnie MSRs. The memorandum also modifies application requirements for new issuers so that applicants who would immediately appear on Ginnie Mae’s internal financial conditions watchlist are not approved as Ginnie Mae issuers.Additionally, APM 18-07 clarifies Ginnie Mae’s authority to require supplemental financial or operating requirements before certain issuers are granted additional commitment authority.There are nearly 400 approved issuers of Ginnie Mae MBS. As of Sept. 30, more than $2.008 trillion of Ginnie Mae MBS were outstanding, comprised of more than 11 million loans. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

The Growing Problem With Household Debt

first_imgHome / Daily Dose / The Growing Problem With Household Debt Previous: The Gap Between Mortgage Default and Settlement Next: More Time for the National Flood Insurance Program The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Mike Albanese in Daily Dose, Featured, News Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Household debt in Q1 2019 increased 0.9% to $13.67 trillion, with balances on mortgages increasing 1.3%, according to the Federal Reserve Bank of New York and the Center of Microeconomic Data. It was the 19th consecutive quarter with an increase, with household debt $993 billion higher than its previous peak of $12.68 trillion in Q3 2008.An accompanying release by the New York Fed states mortgage prevalence has declined since peaking at 34% in 2006. About 26% of Americans between the ages of 20 and 69 had a mortgage at the end of 2018. This is the lowest amount in the 20 years of available data. Mortgage originations declined to $344 billion—the lowest level since Q3 2014. Delinquencies improved slightly, according to the report, with 1% of mortgage balances delinquent 90 days or more, down from 1.1% in Q4 2018.Total household debt increases in Q1 2019 outpaced the 0.2% increase from 2018 and debt rose by a total of $124 billion. Balances also climbed 0.5% in auto loans, 2% on student loans, and while credit card balances fell 2.5%. “The rate at which credit card balances become delinquent has been rising, and that has coincided with an increase in younger borrowers entering the credit card market,” said Andrew Haughwout, SVP at the New York Fed. “However, these delinquency rates are increasing from historically low levels and remain below pre-financial-crisis levels.”Housing debt has been increasing since dipping to $8.38 trillion in Q2 2013. The report states mortgage balances stood at $9.2 trillion, increasing by $120 billion from Q4 2018.Housing debt in Q1 2004 was $6.2 trillion. The report added that balances on home equity lines of credit (HELOC) declined by $6 billion, continuing its trend from 2009. HELOC balances are currently $406 billion. Non-housing balances increased by $10 billion in Q1, with the biggest increases being a $29 billion hike in student loan balances.The report also stated that 192,000 consumers had a bankruptcy notation add their credit reports, which is unchanged from Q1 2018.The number of credit inquiries decline to around 137 million, which is the lowest level recorded in the history of the data. Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. The Growing Problem With Household Debtcenter_img Sign up for DS News Daily May 15, 2019 1,608 Views The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago credit card debt debt Household Debt New York Fed 2019-05-15 Mike Albanese Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Tagged with: credit card debt debt Household Debt New York Fed Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

Studying Foreclosure Data by County

first_img About Author: Andy Beth Miller Home / Daily Dose / Studying Foreclosure Data by County Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Foreclosure, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe December 20, 2019 3,744 Views Tagged with: Foreclosure Previous: The Next Generation of REO Agents Next: Presidential Candidates Lay Out Housing Plans Sign up for DS News Daily Foreclosure 2019-12-20 Mike Albanese Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img ATTOM Data Solutions’ November 2019 U.S. Foreclosure Activity Analysis pinpoints the top-ranking states and metro areas that have the highest foreclosure rates in the nation. Experts have used this data and dug deeper, pinpointing the areas where foreclosures are the highest, differentiating the statistics right down to the separate of county lines.According to the data from ATTOM Data Solutions’ November 2019 U.S. Foreclosure Activity Analysis, there were a total of 49,898 U.S. properties that filed for foreclosure during the month of November in 2019. This amount revealed a drop of 10% from the October foreclosures filed this year, and down 6% from a year ago.New Jersey had the highest concentration of foreclosure rates out of all of the states, the specific counties across the nation being Cumberland, New Jersey; Baltimore City, Maryland; Clayton, Georgia; Gloucester, New Jersey; Erie, New York; Sussex, New Jersey; Kent, Delaware; Camden, New Jersey; Prince George’s County, Maryland; and Warren, New Jersey.Statistics specifically showed that across the nation, one out of every 2,713 U.S. properties filed for foreclosure in November 2019. When the statistics were further broken down to the state levels, the states that reported the most November 2019 foreclosures included Delaware, New Jersey, Maryland, Illinois, and Florida. Among those metro areas with more than 200,000 people living in them, (of which there were 220 metro areas studied), the ones reporting the highest foreclosure rates in November included Buffalo, New York; Atlantic City, New Jersey; Columbia, South Carolina; Fayetteville, North Carolina; and Trenton, New Jersey. Among the more populated metro areas, those with at least 1 million people, which numbered 53, those with the highest foreclosure rates in November (already including Buffalo, New York) consisted of Jacksonville, Florida; Cleveland, Ohio; Baltimore, Maryland; and Philadelphia; Pennsylvania.Also mentioned in ATTOM’s November 2019 report was the fact that bank repossessions have risen 4% since October and 22% from a year ago. As for foreclosure starts, they were reporting as having fallen 13% from October and 11% from a year ago. Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Studying Foreclosure Data by County Data Provider Black Knight to Acquire Top of Mind 2 days ago Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad. The Best Markets For Residential Property Investors 2 days ago Share Save Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more