Month:

May 2021

FCC Recommends Limitations to Debt Collection Rule

first_img FCC Recommends Limitations to Debt Collection Rule Home / Daily Dose / FCC Recommends Limitations to Debt Collection Rule Servicers Navigate the Post-Pandemic World 2 days ago June 16, 2016 1,256 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: FHFA’s OIG Questions Rising Cost of Fannie Mae HQ Next: Housing Market Accelerates at Record Pace Debt Collection FCC TCPA 2016-06-16 Brian Honea Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Aly J. Yale is a freelance writer and editor based in Fort Worth, Texas. She has worked for various newspapers, magazines, and publications across the nation, including The Dallas Morning News and Addison Magazine. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more. About Author: Aly J. Yale The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily center_img Share Save in Daily Dose, Featured, Government, News Subscribe Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Federal Communication Commission (FCC) has released formal recommendations for how recent changes to the Telephone Consumer Protection Act (TCPA) will be implemented—and the mortgage industry should take note.Back in May, the FCC announced it would exempt government debt collection from the TCPA rule, allowing loan, mortgage, tax and other debt collectors to use autodialing and “modern dialing” technologies to reach customers underwater. Previously, the rule severely limited how collectors could contact these customers, requiring them to have express consent before calling any debtor on their cell phones through any means.Violating this rule came with high stakes, too. Collectors faced $1,500 infraction fees, class-action suits, and other legal penalties. But now, that all may be changing.Under the new Bipartisan Budget Act, collectors no longer need this express consent, but the FCC can still limit the frequency and duration of debt collection calls. These limitations, along with other recommendations for TCPA implementation, were covered in an FCC Consumer Advisory Committee meeting June 10.The committee has officially recommended the following limitations be put in place in order to protect consumers under the new and changing TCPA:Collectors must have a documented rational for believing a particular phone number belongs to a debtor;Calls can only be made to the debtors themselves, not family, friends, or employers;Rules should apply to both text messages and cell phone calls;Calls must be linked to delinquent or defaulted debt and no telemarketing messages should be allowed;Consumers can request calls to stop and must be notified of this right;Calls should only be made between 8 a.m. and 9 p.m.; andCalls must be related to debts owed to the United States and debts sold to third-parties would not apply.According to ACA International, a resource for creditors and collection professionals, exempting government debt collectors from the TCPA rule will have little impact on the consumer or debt payback.The company said on its website: “The straightforward exemption created by Congress will have very little practical impact in fostering the communication between consumers and debt collectors that is critical to promote the repayment of federal government debt, or in reducing liability for government debt collectors who contact consumers on their mobile telephones using modern calling technology.”Click here to view the recommendations. Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Tagged with: Debt Collection FCC TCPAlast_img read more

Treasury to Streamline Capital Markets

first_img  Print This Post The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, Headlines, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Treasury 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] Treasury to Streamline Capital Markets The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily October 9, 2017 1,272 Views Servicers Navigate the Post-Pandemic World 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Treasury 2017-10-09 Nicole Casperson Previous: CIT Group Sells Reverse Mortgage Operation Next: Delinquency Rate Continues at 10-year Low Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Treasury to Streamline Capital Markets The U.S. Department of the Treasury released a report outlining ways to streamline and reform the U.S. regulatory system for the capital markets, and how to reduce burdens the capital markets cause.The recently issued report was in response to Executive Order 13772 issued by President Donald Trump on February 3, 2017, which called on Treasury under the direction of Secretary Steven T. Mnuchin to “identify laws and regulations that are inconsistent with a set of Core Principles of financial regulation.”As the capital markets are a source of liquidity for small businesses as they grow, invest, and hire, Treasury identified a list of ways to reduce the burden on companies that are looking to go public or stay public, while maintaining strong investor protections.According to Treasury Secretary Steven T. Mnuchin, the U.S. has experienced slow economic growth for far too long. In this report, Treasury examined the capital markets system to identify regulations that are standing in the way of economic growth and capital formation.“By streamlining the regulatory system, we can make the U.S. capital markets a true source of economic growth which will harness American ingenuity and allow small businesses to grow,” Mnuchin said.Treasury’s recommendations include numerous measures to encourage companies toward public ownership, including “eliminating duplicative requirements, liberalizing pre-initial public offering communications, and removing non-material disclosure requirements, among other recommendations.”In light of any improperly tailored regulatory burden that can “benefit the largest companies, which are better positioned to absorb the costs, and discourage competition from new entrants,” Treasury has also identified opportunities to ease challenges for smaller public companies, including scaled disclosure requirements.A list of all of Treasury’s recommendations within this report is set forth as Appendix B, including the recommended action, the method of implementation.View the full report by clicking here.In addition, click here to view Treasury’s fact sheet. Related Articles About Author: Nicole Casperson Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

Navigating Safe Harbors and HOAs

first_imgEditor’s note: This story was originally featured in the January issue of DS News, out now.The Florida Fourth District Court of Appeals (Fourth DCA) recently affirmed the extension of safe harbor protection provided to homeowner’s associations under §720.3085(2)(c), Florida Statute, to a nonmortgagee/non-mortgage holder. The statute addresses property assessments imposed by Florida homeowners’ associations. Under the pertinent provisions of this statute, if the associations’ governing documents allow for assessments, a parcel owner is liable for all assessments that come due while it is the parcel owner. Additionally, if the parcel owner sells or transfers its ownership interest, it is “jointly and severally liable with the [new] parcel owner for all unpaid assessments that came due up to the time of transfer of title.”The statute provides certain limitations on the amounts that can be assessed against an owner where the owner is “a first mortgagee or its successor or assignee” that acquired title to a parcel by foreclosure or by deed in lieu of foreclosure. Under this provision, the amount a mortgagee or mortgage holder owes to an association are limited to the lessor of 12 months of assessments that became due immediately preceding the acquisition of title or 1 percent of the original mortgage debt.In Villas of Windmill Point, CitiMortgage held a first mortgage on real property that was subject to unpaid association assessments. CitiMortgage successfully foreclosed its mortgage and named the property owner’s association, Villas of Windmill Point II, in its foreclosure action. At the foreclosure sale, CitiMortgage placed the successful bid and became the title owner of the property. After taking title, CitiMortgage deeded the property to Fannie Mae. The Villas’ association and Fannie Mae disagreed on “whether Fannie Mae was entitled to the protection of the safe harbor provision … ” of the statute, to limit the amount of unpaid assessments. Fannie Mae’s servicer, Nationstar, sued the association on behalf of Fannie Mae to compel the association’s compliance with the safe harbor provision of section 720.3085(2)(c), Fla. Stat. The association argued Fannie Mae “was not a first mortgagee (or its successor or assignee) that acquired title to the parcel by foreclosure or by deed in lieu of foreclosure.”The trial court ruled in favor of Nationstar and limited Fannie Mae’s liability to the association to 1 percent of the original mortgage, plus monthly assessments that accrued after CitiMortgage took title. The association appealed that ruling. The Fourth DCA agreed with the lower court, finding that Fannie Mae, although not a first mortgagee or a subsequent mortgage holder, still “indirectly” benefited from the safe harbor provision of § 720.3085(2)(c) because of the joint and several liability clause in that statute. The Fourth DCA pointed out that the association incorrectly read the statute “in isolation” and overlooked that Fannie Mae’s liability was “coextensive with that of CitiMortgage for all unpaid assessments that were due up to the time of the transfer of title.” The court noted the parties did not dispute the fact CitiMortgage was entitled to the safe harbor provision.The court explained: “… CitiMortgage’s entitlement to the safe harbor protection of section 720.3085(2)(c) is relevant to determining the amount of Fannie Mae’s ‘joint and several liability’ with CitiMortgage.” The court concluded: “[W]hen Fannie Mae acquired title to the property from CitiMortgage, it became jointly and severally liable with CitiMortgage for all unpaid assessments owed by CitiMortgage at the time of transfer of title, that is, 1 percent of the original mortgage amount, or $1,036.00.”The Fourth DCA’s holding in Villas of Windmill Point is well reasoned and should expedite the REO process on units that are subject to unpaid association assessments. Practitioners should be aware of the rationale applied by the court in evaluating the relationship between the GSEs and the servicing entities responsible for servicing GSE loans. To the extent association statutes extend protection to mortgagees, those protections should extend to the underlying investor. The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Subscribe Home / Daily Dose / Navigating Safe Harbors and HOAs The Best Markets For Residential Property Investors 2 days ago Navigating Safe Harbors and HOAs The Best Markets For Residential Property Investors 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Tagged with: Florida Homeowners Associations Print Features roy diaz Safe Harbor Rule title transfers Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago January 16, 2018 3,412 Views Servicers Navigate the Post-Pandemic World 2 days ago Florida Homeowners Associations Print Features roy diaz Safe Harbor Rule title transfers 2018-01-16 Chance Johnson Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save in Daily Dose, Featured, Magazine, Print Features Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: Are Housing Databases Overshadowing Agents? 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Hurricane Season 2019: Increased Activity in the Cards

first_img Governmental Measures Target Expanded Access to Affordable Housing 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. Hurricane Season 2019: Increased Activity in the Cards Tagged with: Colorado State University Disaster Relief HOUSING Hurricane Servicers Navigate the Post-Pandemic World 2 days ago Colorado State University has increased its hurricane forecast from 13 to 14 storms in its latest projections for the 2019 hurricane season that began on June 1. In its latest forecast, the University has included sub-tropical storm Andrea that had formed off the Atlantic coast prior to the start of the season.The forecast pegs the probability of at least one major hurricane to make landfall along the continental U.S. coastline at 54%, slightly higher than the historical average of 52%.“As is the case with all hurricane seasons, coastal residents are reminded that it only takes one hurricane making landfall to make it an active season for them,’’ Phil Klotzbach, the forecast’s lead author told Bloomberg. “They should prepare the same for every season, regardless of how much activity is predicted.’’Klozbach also pointed out that the forecast this year was tricky because the models were mixed on “whether an El Nino across the equatorial Pacific will last into late August and September.”According to the report, six of the 14 named storms were likely to be hurricanes with two major systems that would carry winds of 11 miles per hour.Category 3, 4, or 5 hurricanes can cause much damage to life and property. In 2017,  Hurricanes Harvey, Maria, and Irma together caused damage worth $265 billion according to data from the National Hurricane Center cited by Bloomberg, making it the costliest hurricane season in recent times.In fact, the U.S. House of Representatives recently voted to pass H.R.2940, which provides $19.1 billion in recovery funds for disaster-affected areas including Puerto Rico. The House passed the bill after a 10-day recess, voting 354-58. As the Senate had already voted to pass the bill 85-8 on May 23, the bill will now move on to President Donald Trump for his sign-off.”We must work together quickly to pass a bill that addresses the surge of unaccompanied children crossing the border and provides law enforcement agencies with the funding they need,” said top Appropriations Committee Republican Kay Granger of Texas on Fox News. “The stakes are high. There are serious—life or death—repercussions if the Congress does not act.”According to the Texas Tribune, Texas has already received billions of dollars for Harvey recovery, but each bucket of money is designated for a specific purpose. The $4.3 billion that Congress approved for Texas last February is part of a HUD grant program designed “to help cities, counties, and States recover from Presidentially declared disasters, especially in low-income areas.”The Five Star Institute will host its Disaster Preparedness Symposium on July 31 in New Orleans, Louisiana. Natural disasters impact investors, service providers, mortgage servicers, government agencies, legal professionals, lenders, property preservation companies, and—most importantly—homeowners. The 2019 Five Star Disaster Preparedness Symposium will include critical conversations on the response, reaction, and assistance, to ensure the industry is ready to lend the proper support the next time a natural disaster strikes. Home / Daily Dose / Hurricane Season 2019: Increased Activity in the Cards 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 Sign up for DS News Daily in Daily Dose, Featured, Market Studies, News June 5, 2019 1,468 Views Related Articlescenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe Share Save The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Radhika Ojha Demand Propels Home Prices Upward 2 days ago  Print This Post Colorado State University Disaster Relief HOUSING Hurricane 2019-06-05 Radhika Ojha Previous: Where Is Renting Preferred Over Owning a Home? Next: Wells Fargo Pledges $1B to Tackle Housing Challengeslast_img read more

Is Renting Really Such a Bad Idea?

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Apartment List Homeowners HOUSING Rent renter stigma Renters Savings 2019-07-10 Radhika Ojha Previous: Powell Signals Rate Cuts in the Cards Next: Freedom Debt Relief Settles CFPB Lawsuit Subscribe July 10, 2019 1,079 Views Renters are more likely to face social and economic pressures than homeowners, according to a new survey by Apartment List.The survey found that 30% of Americans, which included renters and homeowners, believed that there was a negative stigma against renters. The survey indicated that this stigma was born out of:long-standing societal perceptions of success and homeownership andthe present-day economic and emotional burdens of disappearing affordability.The “renter stigma,” the survey indicated, was correlated to age as well as where renters tend to live. In fact, 33% of 18-29-year-olds believed that renter stigma existed, compared to 23% percent of those over 60.Also, over 35% of people residing in dense urban cores of large cities observed renter stigma, compared to less than 25% of those living in non-metro areas, according to the survey. Renter stigma was also fueled by societal perceptions of homeownership being equaled to success.In fact, 86% of respondents said they believed homeownership was important for personal success and 87% said it was important for financial security. Eighty-two percent of homeowners believe that owning their home is saving them money in the long run, while 62% of renters believe that by renting, they are losing money.Apartmentlist.com said that these perceptions remained despite “a growing body of academic research suggesting that many renters today actually have a wealth-building advantage over homeowners.”Interestingly, the survey revealed that homeowners, more than renters were likely to believe in the renter stigma, making it one of the key reasons to own a home. “Among homeowners, those who buck conventional wisdom and say they are losing money by not renting are actually the most likely to believe renter stigma exists. Fifty-five percent of these homeowners perceive a stigma against renting, more than any other group surveyed,” the survey said.On the other hand, it indicated that these homeowners could represent those who were willing to pay a premium just to avoid renting and the stigma associated with it or they could be people who were unsatisfied with homeownership and now saw the perception of renting as unduly negative.The belief in renter stigma was highest among the group of renters who experienced some level of emotional stress whenever rent was due. The survey found that many renters made financial and emotional sacrifices to afford their housing costs in the absence of affordable housing options. Some of these short-term sacrifices included withdrawing money from personal savings, putting less money away for retirement, or taking on additional credit card debt. Home / Daily Dose / Is Renting Really Such a Bad Idea? Share Save Tagged with: Apartment List Homeowners HOUSING Rent renter stigma Renters Savings  Print This Post The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News The Best Markets For Residential Property Investors 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. Data Provider Black Knight to Acquire Top of Mind 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 About Author: Radhika Ojha Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Related Articles 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 Is Renting Really Such a Bad Idea?last_img read more

How Mortgage Default Rates Are Trending

first_img How Mortgage Default Rates Are Trending  Print This Post Tagged with: default The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Subscribe December 17, 2019 2,781 Views Previous: Low-End Rentals Propping Up Investment Growth Next: Wells Fargo Commits $10M to Philadelphia Home / Daily Dose / How Mortgage Default Rates Are Trending in Daily Dose, Featured, Market Studies, News The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Demand Propels Home Prices Upward 2 days ago Related Articles 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. Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Seth Welborn Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago default 2019-12-17 Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago While first mortgage default stayed the same overall in November 2019, the most recent S&P/Experian Consumer Credit Default Indices revealed that default increased year over year, from 0.64% in November 2018 to 0.77% in November 2019.Four of the five major metropolitan statistical areas showed higher default rates compared to the previous month. Miami showed the largest increase, up 22 basis points to 1.53%. The default rate for Los Angeles rose 12 basis points to 0.77%, while the rate for New York climbed seven basis points to 1.14%. The level for Dallas rose four basis points to 1.01%, while the rate for Chicago was three basis points lower at 1.14%.The composite default rate, composed of first mortgage, bank card, and auto loan defaults, rose one basis point in November 2019 from 0.93% to 0.94%, and up year over year from 0.83%.The previous release from S&P/Experian Consumer Credit Default Indices saw default rates rise for first time mortgages rose for the third month in a row.Despite October’s rise in mortgage defaults, the indices shows that the composite rate was unchanged at 0.93%, as other forms of credit fell that month. The bank card default rate fell 44 basis points to 2.88%. The auto loan default rate was down two basis points to 1.03%, and the first mortgage default rate increased four basis points to 0.77%.In an effort to further reduce future defaults on FHA-insured mortgages, the Federal Housing Administration (FHA) has signaled that it may tighten credit, noting that the debt-to-income (DTI) ratio for FHA-insured loans has been consistently increasing for six years. In a new report, Urban Institute examined  how important DTI ratios in predicting a borrower’s ability to make on-time mortgage payments, and how debt burden impacts ability to repay FHA mortgages.According to Urban, DTI ratios are much less significant predictors of loan performance than FICO scores and that many high-DTI loans have strong FICO scores. Additionally, Urban’s analysis found that higher-DTI loans do not always have higher serious delinquency rates, and 5.6% of loans with DTI ratios ranging from 0 to 35% have been seriously delinquent at 60 months of age, compared with 7.6% of loans with DTI ratios of 35–45. But for loans with DTI ratios greater than 50, the D90+ rate at 60 months is 6.9%, lower than those with DTI ratios of 35–45. Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Lack of Inventory Spurring Growth of Single-Family Rental Market

first_img  Print This Post Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago About Author: Mike Albanese December 23, 2019 3,168 Views Home / Daily Dose / Lack of Inventory Spurring Growth of Single-Family Rental Market Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Analysis Says ‘Of Course’ Recession Will Occur Next: CFPB Announces Changes to Exemption Thresholds Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Lack of Inventory Spurring Growth of Single-Family Rental Market 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. Share Save Subscribecenter_img Demand Propels Home Prices Upward 2 days ago A report by CNBC states that more potential buyers will elect to remain rentals due to the lack of inventory and unaffordable housing market. CNBC’s Diana Olick said the stocks of REITs are increasing annually and those companies helping investors buy and sell rental properties are up and seeing “explosive growth.” “You can come to us with $5,000 and buy a share of a rental home, all the way up to if you have $500 million and you’re a large institution and want to put that to work,” said Gary Beasley, CEO, Roofstock. Olick said Roofstock launched just two years ago and has already surpassed $2 billion in rental property transactions.CoreLogic reported that single-family rents rose 3.1% year-over-year in October 2019—an increase from 2.9% in October 2018—according to the Single-Family Rent Index. Single-family rents started climbing steadily in 2010 and have stabilized at around 3% since early 2019.  CoreLogic states that rents on lower-priced homes increased 3.6% annually and rentes for higher-priced homes—properties with rents more than 125% of the regional median rent—rose 2.9% year-over-year. Rent growth for higher-priced homes gained momentum in October 2019, increased by 0.4% faster than in October 2018. The annual pace of annual rent growth for lower-priced rental homes slowed by 0.2%. Phoenix, Arizona, had the highest annual rent growth in October 2019 with an increase of 6.8%, followed by Seattle, Washington (5.8%) and Las Vegas, Nevada (5.4%). Miami, Florida, had the lowest rent growth in October, increasing by just 1% from the prior year. Miami had the lowest rent growth for nine straight months.  Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Investment Single Family Rental in Daily Dose, Featured, Investment, News 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 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Investment Single Family Rental 2019-12-23 Mike Albaneselast_img read more

A Lookback on Combined Loan-to-Value Ratios

first_img CLTV loans mortgage 2020-06-15 Seth Welborn Previous: Fannie Mae Hires Financial Advisor Next: Understanding the Causes of Mortgage Credit Tightening 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 Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save An analysis of the CLTV ratio, by price bucket, shows that homebuyers in 2019 borrowed more for homes in the same price range than they did in 2015, according to a new study from CoreLogic. The report reveals that “median home price in 2019 for mortgaged home sales was roughly $260,000, with an estimated average CLTV of 89%. Conversely, in 2015, homebuyers averaged a CLTV of 88% for homes when spending the same amount.”The report also shows that, adjusting for home-price appreciation, CLTVs at the low end have not experienced much change. CoreLogic explains that, from 2015–2019, the median sale price increased by 17%. The report states, “While in 2015, purchase mortgages at the median sale price had roughly the same average CLTV as those sold around the median price in 2019. By accounting first for home-price appreciation, we can provide a fair comparison of the average CLTV by price bucket.”Adjusting 2015 median sale price amounts in light of 2019 home appreciation, the average CLTV for homes sold was roughly the same in both years, CoreLogic reports. For home sales with a sale price amount equal to or exceeding 125% of the national median (considered “high-tier” by CoreLogic), “the CLTV in 2019 averaged about 1 percentage point less than in 2015.”Between 2015–2019, nationwide home values grew an average of 22%—”possibly contributing to the improvement in CLTV for high-end home purchases,” according to CoreLogic. As such, homebuyers selling an existing home in 2019 “would likely have benefited from increases in home equity, resulting in additional funds to put towards a down payment on the new home.””In recent years we’ve seen a steady pattern of higher CLTV ratios within low-end purchases markets and a steady CLTV decrease as the home becomes more expensive,” said CoreLogic. “The pattern could be in part due to lower-priced entry-level homes being sold to buyers without established home equity to help with a down payment. Alternatively, it could be a result of higher-end homes being purchased by existing homeowners looking to trade up. After adjusting for changes in home price growth, there has been very little change in the average CLTV by price bucket except for a slight decline with higher-end sales. That said, any change in the overall average CLTV may provide initial insight into the buyer mix and risk tolerance of lenders.”  Print This Post Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / A Lookback on Combined Loan-to-Value Ratios The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, Newscenter_img Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago A Lookback on Combined Loan-to-Value Ratios About Author: Seth Welborn The Best Markets For Residential Property Investors 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. The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Sign up for DS News Daily June 15, 2020 1,227 Views Tagged with: CLTV loans mortgage Subscribelast_img read more

High Unemployment Hasn’t Curbed ‘Robust’ Housing Market

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Previous: Former Freddie Mac Exec Criticizes Financial Stability Oversight Council Next: Industry Representatives Urge Congress to Pass COVID-19 Relief The Best Markets For Residential Property Investors 2 days ago October 2, 2020 1,762 Views Home / Daily Dose / High Unemployment Hasn’t Curbed ‘Robust’ Housing Market Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save High Unemployment Hasn’t Curbed ‘Robust’ Housing Market Related Articles in Daily Dose, Featured, Government, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Housing Market Unemployment 2020-10-02 Christina Hughes Babb Tagged with: Housing Market Unemployment Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily About Author: Christina Hughes Babb Zillow’s Weekly Market Report shows sellers still steering the housing market. Prices reached a record year-over-year rise and already-low inventory continues to shrink. The report takes into consideration the drop of unemployment claims, and a gain in consumer confidence (which potentially could be boosted with the passage of a revised COVID-19-relief package, progressing through government channels, that includes another stimulus check and a $600 unemployment increase.)Pending sales have slowed down by 4.6% since last month, though they are up about 22% since the previous year.”Though the pandemic pushed the buying season back and demand is still high, buyers’ scramble for houses seems to be calming somewhat,” Zillow reported.Homes stayed on the market a median of 13 days. This short time has been typical throughout the past two months, Zillow reported. The time on the market a year ago was about 15 days longer.Inventory has continued to contract for 18 weeks straight. At 35% below 2019 levels, this represents the biggest annual drop in total inventory since Zillow started recording monthly inventory in 2013. It is down 3.2% month over month.New for-sale listings are down 9.5% year over year and down 6.9% since the previous month.”In late August, a brief surge of new listings threatened to reach parity with 2019 levels, but that pace dropped off again in September, contributing to the ever-deepening drought of overall active listings,” Zillow reported.Median sale price for the week of August 15 rose 9.3% year over year to $284,625, which is the highest yearly jump in price since at least the start of 2019; Median sale price was up 1.2% month over month. That’s less aggressive growth than the previous eight weeks.Over last year, median list price rose to $345,000 (10.4%), Zillow’s highest-recorded year-over-year increase. “However, the only slight monthly uptick of 0.1% could indicate that an overdue seasonal cooling of the market may finally be setting in,” Zillow reported.After two months of decline, the Conference Board’s Consumer Confidence Index jumped 15.5 points from August to September. That, Zillow reported, “is the strongest month-over-month gain since April 2003.” (Overall confidence is still 23% below February levels).New unemployment claims fell by 36,000 last week but remained elevated at between 800,000 and 900,000 for the fifth straight week.”Those collecting unemployment insurance through regular state programs fell by 980,000 to 11.8 million,” Zillow reported, “which is the lowest level seen since March, but still far above the 1.7 million on unemployment at this time last year.”Fannie Mae’s Chief Economist Doug Duncan pointed out how jobs impact not only the market in general but also the inventory issue. “Residential construction employment (including specialty trade contractors) posted another large increase this month, with job gains of 22,000, a welcome sign for a sector dealing with supply constraints.”Commenting on the jobs report, First American Deputy Chief Economist Odeta Kushi said that the “long-term economic scarring from workers dropping out of the labor force” is more concerning than the headline unemployment rate.”A lower labor force participation rate tends to go hand-in-hand with slower wage growth,” she said. “For the housing market, slower wage growth could chip away at house-buying power, while the ongoing supply shortage continues to put upward pressure on house price appreciation, with repercussions for affordability.”Realtor.com’s Senior Economist, George Ratiu said he expects low mortgage rates to “keep demand robust as many buyers who still have their jobs are on the hunt.””However,” he added, “with real estate price growth more than doubling wage growth, many buyers will struggle with affordability.”The full market report, through September 26, is available on Zillow.com.The job report from the Bureau of Labor Statistics is here. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 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 agolast_img read more

FHFA Releases Latest Mortgage Relief Numbers

first_img in Daily Dose, Featured, Foreclosure, Government, Loss Mitigation, Market Studies, News, Secondary Market Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / FHFA Releases Latest Mortgage Relief Numbers Servicers Navigate the Post-Pandemic World 2 days ago The Federal Housing Finance Agency (FHFA) Thursday released its Q2 Foreclosure Prevention and Refinance Report.The report shows Fannie Mae and Freddie Mac, since the 2008 start of conservatorship, completed 252,014 foreclosure prevention actions. Overall, that brings the number of “troubled homeowners who have been helped” to 4.68 million, FHFA reported.The Agency said that 3.98 million of the foreclosure prevention actions have helped people stay in their homes.The actions have included 2,420,846 permanent loan modifications.The initiation of forbearance plans has significantly increased to 1,511,787 from 170,533 in Q1, due to the COVID-19 pandemic as well as forbearance programs being offered to the affected borrowers, the Agency reported.It said, “The total number of loans in forbearance plans at the end of the quarter was 1,398,250, representing approximately 4.95% of the total loans serviced, and 90% of the total delinquent loans.”Of modifications in the second quarter, 19% were modifications with principal forbearance.Modifications with extend-term only accounted for 66% of loan modifications in Q2.Short sales completed and deeds-in-lieu this quarter totaled 922, which brought the total to 699,596 since start of the conservatorship.GSEs’ mortgage performance looked like this:  The 60-plus days delinquency rate jumped from 0.92% at the end of Q1 to 4.08% at the end of Q2. That is the highest rate since Q2 2012.  The spike in delinquencies was caused by the pandemic, the Agency reported; serious delinquency rates (90-plus days) rose to 2.58% at the end of the second quarter. This compared with 7.96% for Federal Housing Administration (FHA) loans, 3.98% for VA loans, and 4.26% for the industry average.​GSE foreclosures:​Foreclosure starts decreased to 74% to 7,551; third-party and foreclosure sales dropped 87% to 1,028 in the second quarter due to the suspension of foreclosures.​Refinance-activity highlights from the Q2 report​​:​​Total refinance volume increased in June to levels last observed in 2013 as mortgage rates fell in previous months; rates decreased further in June, and the average interest rate on a 30-year fixed rate mortgage fell to 3.16% from 3.23% last May.Completed refinances through the High LTV Refinance Option totaled 51 in Q2, bringing total refinances through that option, from its inception, to 70.Cash-out refinances increased from 28% in May to 27% in June. “Mortgage rates continued to fall,” the FHFA said, “creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.”The entire report, including detailed charts and graphs, can be viewed here. Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Previous: Waters Requests Review of Disparate Impact Rule Next: DS5: Residential Real Estate Investment Landscape Insights About Author: Christina Hughes Babb The Best Markets For Residential Property Investors 2 days ago Fannie Mae FHFA Foreclosure Freddie Mac Prevention Refinance 2020-09-25 Christina Hughes Babb Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Fannie Mae FHFA Foreclosure Freddie Mac Prevention Refinance Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles  Print This Post Demand Propels Home Prices Upward 2 days ago September 25, 2020 1,858 Views FHFA Releases Latest Mortgage Relief Numbers 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more