Survey: Delinquencies, Foreclosure Inventory Fall Below Pre-Recession Levels

first_img The Best Markets For Residential Property Investors 2 days ago Previous: Housing Market Continues Gradual Move Toward Recovery Next: Single-Family Rental Transactions See Low Delinquencies, Improved Vacancies 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. May 6, 2015 933 Views Tagged with: Foreclosure Inventory Foreclosure Starts Mortgage Delinquencies National Delinquency Survey  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Foreclosure, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago Survey: Delinquencies, Foreclosure Inventory Fall Below Pre-Recession Levels The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Sign up for DS News Daily Foreclosure Inventory Foreclosure Starts Mortgage Delinquencies National Delinquency Survey 2015-05-06 Brian Honea Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The residential mortgage delinquency rate dropped to 5.54 percent for Q1 2015, its lowest level since Q2 2007 just prior to the recession, according to the quarterly National Delinquency Survey released by the Mortgage Bankers Association (MBA) on Wednesday.The Q1 decline in delinquency rate (which includes loans that are 30 days or more overdue but not in foreclosure) represented a drop of 14 basis points quarter-over-quarter and 57 basis points year-over-year, according to MBA.Foreclosure inventory – the percentage of loans in some stage of foreclosure – declined by five basis points from Q4 to Q1 down to 2.22 percent. This number represented a decline of 43 basis point year-over-year, and it was also the lowest rate for foreclosure inventory since Q4 2007.”Delinquency rates and the percentage of loans in foreclosure continued to fall in the first quarter and are now at their lowest levels since 2007,” said Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasting.  “The job market continues to grow, and this is the most important fundamental improving mortgage performance. Additionally, home prices continued to rise, as did the pace of sales, thus increasing equity levels and enabling struggling borrowers to sell if needed.”According to Kan, foreclosure inventory has declined for 12 consecutive quarters and at 2.22 percent is approximately half of its peak levels in 2010.The serious delinquency rate, which is the percentage of loans 90 days or more overdue or in foreclosure declined substantially in Q1 down to 4.24 percent – a drop of 28 basis points from Q4 2014 and 80 basis points from the same quarter a year earlier.The only delinquency category that did not see a substantial decline in Q1 was foreclosure starts (0.45 percent), which fell by one basis point quarter-over-quarter and remained unchanged year-over-year.”With a declining 90+ day delinquency rate and the improving credit quality of new loans, we expect that the foreclosure inventory rate will continue to decline in coming quarters,” Kan said. “Foreclosure starts decreased one basis point from the previous quarter, and continue to fluctuate from quarter to quarter mainly due to state-level differences in the speed of the foreclosure process. At 0.45 percent, the level of foreclosure starts is at its long run average.”Kan said that while overall delinquencies for FHA-backed loans declined by 47 basis points year-over-year, foreclosure inventory and foreclosure starts increased by 12 basis points and nine basis points, respectively. Loans with vintages of 2008 through 2010 – at the height of the crisis – comprised a large portion of the weakness in FHA loans, according to Kan.Also according to the survey, the percentage of mortgage loans in foreclosure in judicial states for Q1 (3.64 percent) was approximately three times the foreclosure inventory in non-judicial states (1.22 percent). For states that utilize both judicial and non-judicial processes for foreclosure, the inventory was 1.43 percent. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Survey: Delinquencies, Foreclosure Inventory Fall Below Pre-Recession Levels Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe About Author: Brian Honealast_img read more

Fed Survey Finds Increased Optimism for Future Financial Prospects

first_imgSign up for DS News Daily 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. Individuals’ optimism regarding future financial prospects increased substantially from 2013 to 2014, while perceptions of current financial well-being improved only modestly, according to a survey conducted by the Federal Reserve released Wednesday.The Fed’s 2014 Survey of Household Economics and Decisionmaking, which was completed by about 5,800 individuals last fall to provide insight into various aspects of Americans’ personal finances such as economic security, banking, credit access and usage, housing, household debt (including education and student loan debt), savings, and preparedness for retirement.The survey found that 65 percent of adult respondents said they were either “doing okay” or “living comfortably” as far as their personal finance situation, which represented an increase of 3 percentage points from the survey the previous year. Meanwhile, the percentage of respondents who said they expect their income to be higher in the next year jumped from 21 percent in 2013 to 29 percent in the 2014 survey.”In general, the majority of the population is continuing to recover from the financial crisis and the effects it had on their personal finances and financial well-being,” the Fed wrote in the report.Despite the reasons for optimism, however, the Fed said the survey’s findings “highlight that economic challenges remain for a significant portion of the population.” The survey indicated that many Americans are not prepared for economic emergencies or for the future. Just more than half of survey respondents, 53 percent, said they would be able to cover an emergency expense costing $400 without borrowing money or selling something. Nearly one-third of respondents said they have done without some type of medical care they needed in the last year because they could not afford it. Also, 49 percent of part-time workers surveyed and 36 percent of all workers surveyed said they prefer to work more hours at the same rate of pay if they could.Further indicating a lack of financial preparedness, the survey found that 31 percent of non-retirees (almost a quarter of them over age 45) had no retirement savings or pension. Less than half of adults who said they were saving for retirement said they were “mostly” or “very” confident they could make the right investment decisions to manage the money they saved. Thirty-eight percent of respondents who were not retired said they had no plans to retire, and among households with an income of less than $40,000 per year, 55 percent of respondents said they have no plans to retire or plan to keep working as long as possible.Homeowners generally remained positive in their attitudes toward housing; 43 percent of respondents said they believe the value of their house increased in the last year, while 39 percent said they expect home values to rise in their neighborhood in the coming year. Many of the respondents who rent said they wanted to buy a home but could not due to financial barriers; about half said the inability to afford a down payment was the biggest barrier to homeownership, while about 31 percent said the inability to qualify for a mortgage was their main reason for renting.Also according to the survey, 23 percent of adult respondents said they had some form of education debt, though it was not exclusively student loan debt; 14 percent of those with education debt said that some of the debt was on credit cards.For complete survey results, click here. in Daily Dose, Featured, Market Studies, News May 27, 2015 1,032 Views Fed Survey Finds Increased Optimism for Future Financial Prospects The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Fed Survey Finds Increased Optimism for Future Financial Prospects Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brian Honea Consumer Optimism Federal Reserve Personal Finances 2015-05-27 Brian Honea  Print This Post Demand Propels Home Prices Upward 2 days agocenter_img Previous: Freddie Mac Prices Fourth Structured Credit-Risk Offering of 2015 Next: New VP of Enterprise Sales and Business Development Joins Altisource Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Tagged with: Consumer Optimism Federal Reserve Personal Finances Subscribelast_img read more

Opportunities Still Exist for Real Estate Investors Despite Foreclosure Inventory Decline

first_img Related Articles HomeVestors Investing Local Market Monitor Real Estate Investors Single-Family Rental Properties 2015-07-06 Brian Honea Previous: Delinquency Rate Sees Largest Monthly Increase Since November 2014 Next: House Committee Schedules Hearings Marking Anniversary of Dodd-Frank Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Market Studies, News  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: HomeVestors Investing Local Market Monitor Real Estate Investors Single-Family Rental Properties The Best Markets For Residential Property Investors 2 days ago Opportunities Still Exist for Real Estate Investors Despite Foreclosure Inventory Decline Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save 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. July 6, 2015 2,220 Views Servicers Navigate the Post-Pandemic World 2 days ago About Author: Xhevrije West Home / Daily Dose / Opportunities Still Exist for Real Estate Investors Despite Foreclosure Inventory Decline Many opportunities still exist for real estate investors to acquire properties despite the decrease in inventory of foreclosed homes, according to new quarterly data from HomeVestors, the ‘We Buy Ugly Houses’ organization, and Local Market Monitor, a real estate forecasting solution.The data points out markets that will make profitable rental markets and where home prices are likely to increase at a good rate over the next few years. These markets must have a population that is growing at a rate of 4 percent or better with people coming into the area in search of jobs. Additionally, the current job growth rate must be 2 percent or better and unemployment must be low.“For the last few years, investors have been able to find real estate bargains they could turn into rental properties. That period is pretty much over—the inventory of foreclosed homes has been picked fairly clean, at least in the larger markets,” said Ingo Winzer, president and founder of Local Market Monitor. “You don’t need a bargain in order to make a good real estate investment. Demand for rentals continues to increase in many markets, while homeownership erodes. It’s strongest in those markets growing the fastest, which describes our Top 10 list.”According to the data, Denver, Colorado leads the top 10 list for real estate investing, while Texas dominates the top 10 holding four spots. Dallas, Texas came in second on the list, Houston, Texas in third, Austin, Texas at fourth, and San Antonio, Texas came in seventh. Seattle, Washington finished out the top 5 for real estate investing.“Job and population growth spurs great conditions for investing in single family rental properties,” said David Hicks, HomeVestors co-president. “Places like Austin, whose population growth is triple the national average, continue to grow and create a bigger demand for real estate. The lack of foreclosure inventory may also explain the current record number of HomeVestors franchises. Increasingly, independent investors are looking to HomeVestors’ We Buy Ugly Houses trademark to generate a consistent flow of motivated seller leads”Southern cities rounded out the top 10 best cities for real estate investing with Orlando, Florida in sixth place, Charleston, South Carolina in eighth, Nashville, Tennessee at ninth, and Raleigh, North Carolina in tenth place.“There are still some bargains to be found in these cities, particularly in Orlando, Nashville, and Raleigh. Charleston is the smallest market among our Top 10, but it’s ideal for attracting vacation renters and retirees,” said Ken Channell, HomeVestors co-president. “Although home prices have increased moderately in many parts on the country, there are still smart opportunities for investing in real estate. The economy appears have stabilized and job and population growth make ideal conditions for investing.” The Top 10 Best Markets List for real estate investing are:Denver, ColoradoDallas, TexasHouston, TexasAustin, TexasSeattle, WashingtonOrlando, FloridaSan Antonio, TexasCharleston, South CarolinaNashville, TennesseeRaleigh, North Carolina Subscribelast_img read more

Servicing is More Complex Than Ever With Constantly Changing Rules and Policies

first_imgHome / Daily Dose / Servicing is More Complex Than Ever With Constantly Changing Rules and Policies Tagged with: 2015 Five Star Conference and Expo mortgage servicing Servicers The Best Markets For Residential Property Investors 2 days ago 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 Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago September 19, 2015 1,176 Views Servicing is More Complex Than Ever With Constantly Changing Rules and Policies Previous: Five Star, Auction.com, Operation Homefront Honor Veterans With Mortgage-Free Homes Next: With TRID Looming, Compliance in Housing is More Critical Than Ever Related Articlescenter_img Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Xhevrije West Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save 2015 Five Star Conference and Expo mortgage servicing Servicers 2015-09-19 Brian Honea New regulations and federal oversight have servicers constantly under the gun. They must learn the rules of the road for creating effective compliance and business development strategies in today’s evolving servicing market.As the practice of mortgage servicing continues to undergo sweeping changes—from SPOC to consent orders and everything in between—servicing finds itself in a near constant state of evolution, mired with rules and policy that make today’s practice more complex than ever.In the 2015 Five Star Conference Servicing Lab, a series of panels and speakers addressed topics such as complaints, regulation, and compliance surrounding the servicing industry.The lab was directed by David B. Little, EVP of Servicing at US Bank. It was hosted by ServiceLink, a Black Knight Company and co-hosted by Home Servicing, Stewart, Safeguard Properties, The Collingwood Group, and Seneca Mortgage Servicing.Eric Selk began the lab discussion by explaining the communication gap that servicers face with borrowers.”It’s all about creating the best relationship and creating action with the borrower,” Selk noted. “This is done by simplifying communication between servicers and borrowers.””It’s all about creating the best relationship and creating action with the borrower.” The next topic addressed was borrower complaints. Paul Nagai, Principal, Ernst & Young kicked off this intense conversation by differentiating inquiries or actual complaints among consumers.”Correctly categorizing complaints is a big issue in the industry,” Nagai said. “The key is figuring out if the customer has an inquiry or an actual complaint.””Think of yourself as a customer, how would you want to be treated,” he added.Ramie Word, VP of Foreclosure, Nationstar Mortgage added, “Complaints are not new. One of the new things is sorting through these complaints.”John Kennedy, Director, Credit Portfolio Management, Fannie Mae threw in the importance of creating a single point-of-contact when borrowers submit complaints.”Fannie Mae is passionate about customer service,” Kennedy said. “We have a philosophy: Treat customers like family. They have a serious issue and they need you.”We do our best to face this everyday with open arms to help them,” he added.Nick Volpe, Vice President of Product Management, First American Mortgage Solutions also noted that “communication can be confusing for borrowers, they don’t understand. It’s inherently confusing if they are they are not in our industry.”Danielle Johnson-Kutch, deputy chief, Homeownership Preservation Office at U.S. Department of the Treasury provided an update on the Making Home Affordable, Hardest Hit Fund, and Home Affordable Modification Programs.Meanwhile, Meg Burns, Managing Director, The Collingwood Group provided a glimpse into the politics surrounding Washington, D.C., and how this affects the mortgage industry.To wrap up the lab, a panel discussed servicing transfers and how to handle these within the industry.Editor’s note: The Five Star Institute is the parent company of DS News and DSNews.com. Subscribelast_img read more

Industry Pulse: Updates on Ginnie Mae, Hyland, and More

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: ‘Improving Transparency and Accountability at CFPB’ Next: MBA Names Robert D. Broeksmit as CEO & President The Best Markets For Residential Property Investors 2 days ago From new appointments and research to new technology and rule changes, get the latest buzz on the industry in this weekly update.In a bid to further protect veterans from predatory lending, Ginnie Mae,  a government corporation that attracts global capital into the housing finance system to support homeownership for veterans and low- to moderate-income homeowners, recently issued an All Participants Memorandum (APM). The APM announced the implementation of changes to pooling eligibility requirements for Department of Veteran Affairs’ (VA) insured or guaranteed mortgages under the “Loan Seasoning for Ginnie Mae Mortgage-Backed Securities,” provision. These changes affect security issuances on or after June 1, 2018, but do not otherwise affect the guarantee or composition of MBS issued before that date. Under the APM, a refinance loan insured or guaranteed by the VA is eligible for the lender’s securities only if the note date of the refinance loan must be on or after the date is 210 days after the date on which the first monthly payment was made on the mortgage being refinanced; or the date on which six full monthly payments have been made on the mortgage being refinanced.__________________________________________________________________Ohio-based content services provider for the financial services industry, Hyland, has announced the launch of Brainware for Lending, an intelligent capture solution that accurately captures and classifies loan documents and integrates with the line of business tools to validate extracted data and fill missing information before delivering data to loan origination systems. In a statement, Hyland said that by delivering greater transparency, lending institutions can process loans faster with fewer resources, and improve interactions with borrowers. As the lending industry becomes increasingly complex, banks, lenders and loan servicers experience higher demand from customers for fast lending experiences. At the same time, financial institutions have a greater focus on managing regulatory requirements, which increase per-loan costs and slow processing times. “Brainware intelligent capture is an advanced technology that will fundamentally shift the way financial institutions process and service loans,” said Steve Comer, Director of Financial Services Sales at Hyland. “As a template-free solution, Brainware for Lending gives financial institutions the power to improve the consistency and quality of loan information throughout the loan life cycle, while reducing the cost of validating data.”__________________________________________________________________Calyx Software, a San Jose, California-based provider of comprehensive mortgage software solutions for banks, credit unions, mortgage bankers, wholesale and correspondent lenders and brokers, has announced that David McLeod has joined the company as National Sales Manager. In this role, McLeod will lead the company’s sales team, as well as develop and implement effective sales strategies for Calyx’s product line, including its flagship loan origination system, Point/PointCentral. He will report to Bob Dougherty, Vice President of Business Development. “David’s extensive sales experience will be an asset to our team,” said Dougherty. “He has a proven track record of success and we are confident he will help us identify new opportunities that will strengthen our partnerships and make our clients more successful.”__________________________________________________________________Plano, Texas-based mortgage technology provider, Pavaso, has partnered with OS National LLC (OSN), a nationally recognized provider of title and settlement services, to deliver a complete digital closing program. As a provider of residential and commercial title and settlement services, OSN provides a high-touch, high-tech service experience for every person in the real estate transaction through its national platform and network of retail outlets across the U.S.  “We are excited to partner with Pavaso as the title partner of choice for digital mortgage solutions,” Michelle Esparza, National Sales Executive, OS National said. “At OS National, we believe in providing the best possible service backed by proven technology that drives the title and mortgage industry forward. Partnering with Pavaso supports our core mission to remove paper from our processes and to deliver an exceptional customer experience that exceeds all expectations.” Pavaso’s technology allows lenders and title companies to deliver a complete, transparent loan package to borrowers, allowing them to access the closing documents anywhere, on any device, prior to closing. Pavaso’s Digital Close platform is capable of producing hybrid closings (digital closings which meet state requirements that some documents be “wet signed”), as well as complete eNote and eVault transactions. Industry Pulse: Updates on Ginnie Mae, Hyland, and More Demand Propels Home Prices Upward 2 days ago Related Articles Share Save Tagged with: Calyx Ginnie Mae Hyland industry Lending Pavaso Servicing  Print This Post Home / Daily Dose / Industry Pulse: Updates on Ginnie Mae, Hyland, and More 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. Subscribe Demand Propels Home Prices Upward 2 days agocenter_img Calyx Ginnie Mae Hyland industry Lending Pavaso Servicing 2018-06-06 Radhika Ojha Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, News, Servicing Governmental Measures Target Expanded Access to Affordable Housing 2 days ago June 6, 2018 2,410 Views About Author: Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Low-Income Households Get a Shot at Homeownership

Home / Daily Dose / Low-Income Households Get a Shot at Homeownership 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Spotlight on Single-Borrower Performance Next: Mr. Cooper’s New Chief People & Comms Officer Servicers Navigate the Post-Pandemic World 2 days ago About Author: Radhika Ojha Subscribe February 15, 2019 3,903 Views Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago 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 Tagged with: Grant Homeownership Homes HOUSING HUD low-income households Share Save in Daily Dose, Featured, Government, News Low-Income Households Get a Shot at Homeownership The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Grant Homeownership Homes HOUSING HUD low-income households 2019-02-15 Radhika Ojha The Best Markets For Residential Property Investors 2 days ago Low-income households in Washington, D.C., New Mexico, Georgia, and Washington now have a chance to achieve their dream of homeownership through a $10 million grant in “sweat equity” by the U.S. Department of Housing and Urban Development (HUD).The grant, which is a part of HUD’s Self-Help Homeownership Opportunities Program (SHOP) will support four non-profit self-help organizations that enable homeownership for low-income families and individuals. HUD said that these grants along with the labor contributed by the homebuyers and volunteers in the form of sweat equity will significantly lower the cost of homeownership for these families and individuals.“Advancing economic opportunity for low-income families is a top priority of mine at HUD, and one that the department is carrying out through terrific programs like SHOP,” said HUD Secretary Ben Carson. “These grants, along with the support of our partners, will enable homeownership opportunities for hundreds of deserving families.”Under this program, homebuyers contribute significant sweat equity toward the development of their units. They also have the option of contributing sweat equity towards the units of other homebuyers participating in the local self-help housing programs.These sweat equity contributions reduce the purchase price of the SHOP units and make these homes affordable for low-income homebuyers. A minimum of 100 sweat equity hours is required from a household of two or more persons while an individual must contribute a minimum of 50 sweat equity hours. HUD also requires community participation consisting of volunteer labor contributions under this program. Sweat equity and volunteer labor may include but are not limited to, landscaping, foundation work, painting, carpentry, trim work, drywall, roofing and siding for the house.The organizations which have received the $10 million grant include Housing Assistance Council, Washington, D.C., Community Frameworks in Spokane, Washington, Tierra Del Sol Housing Corporation in Anthony, New Mexico, and Habitat for Humanity International, Americus, in Georgia.  Print This Post Sign up for DS News Daily read more

The Reverse Mortgage Conundrum

first_img  Print This Post Home / Daily Dose / The Reverse Mortgage Conundrum Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, News, Print Features Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: California Unveils State Consumer Financial Protection Bureau Next: Tax Reform’s REIT Impact January 10, 2020 4,465 Views Sign up for DS News Daily The Reverse Mortgage Conundrum The concept of a reverse mortgage can be more easily understood by starting with a traditional mortgage, where the borrower’s home equity increases and the loan balance deceases over time as the borrower makes payments to the lender. With a reverse mortgage, borrowers’ home equity decreases and the loan balance increases over time as borrowers receive cash payments from the lender and interest accrues on the loan. Reverse mortgage functions as a means for elderly homeowners to receive funds based on their home equity, because repayment can usually be deferred until death. As well, reverse mortgages are generally non-recourse loans, meaning that if a borrower fails to repay the loan when due, the lender has no recourse outside of the sale of the home.Through the Housing and Recovery Act of 2008, Congress raised the loan limit to $417,000 for a reverse mortgage, and then in 2009, through the American Recovery and Reinvestment Act, Congress raised the loan limit to $625,500. The limit was raised again by FHA in 2018 to $675,650, then to $726,525 in 2019, with an increase up to $765,600 coming in 2020.The FHA insures HECM program reverse mortgagors, and this insurance provides protection for both borrowers and lenders. Borrowers pay a mortgage insurance premium for this protection, but in return, borrowers may remain in the home indefinitely, even if the loan balance becomes greater than the value of the home, so long as the borrower meets certain conditions (age: at least 62 years old; ownership of property; principal residence of borrower; no existing mortgages; and property standards must be met). Further, FHA protects the borrower against the risk that the lender does not make the “loan disbursements.” This mortgage insurance premium also protects the lender in that it provides the lender its amount due, and continues to pay the borrower (on a monthly plan or from any unused credit line) until the borrower dies or sells the home, if the lender follows an assignment option created from the FHA insuring process.FHA Commissioner Brian Montgomery advocates for continued support and growth of the HECM program. In July, 2018, approximately a month after his confirmation, Montgomery noted that the HECM portfolio sustained a $14.5 billion loss in 2017 but that the program itself is valuable as long as corrections are made. “I have been a strong advocate of the reverse mortgage program,” he said, noting the lack of government assistance for senior homeowners who face income challenges. “This program allows seniors to age in place, which they want to do. It’s the best kind of program [in that it offers] assistance you pay for yourself … It’s up to us to fix it for the long term.”Program changes over the past few years have made the mortgages less risky for borrowers and for the government. Mortgage insurance premiums have been adjusted to provide more lender/insurer protection as well as preserving more equity for borrowers (higher upfront premium offset by lower annual premiums); assessable equity amounts are limited for the first year of the loan; and as of 2015, HUD requires a financial assessment to analyze potential borrowers’ income sources and credit history, to ensure that borrowers have set-aside funds to pay property taxes and homeowners insurance.If the borrower meets the above requirements for a reverse mortgage, then the borrower would continue to have three primary ongoing obligations: 1) the borrower must continue to occupy the property as a principal residence; 2) the borrower must remain current on all property taxes and homeowner’s insurance. If the borrower fails to pay property taxes or maintain current homeowner’s insurance, and fails to bring these accounts current when notified, the lender can foreclose and the borrower could lose their home; and 3) the borrower must keep the home in good repair.  As long as the borrower complies with these ongoing obligations, the borrower will be able to defer payment of the loan until they die, sell, or move out of the home.As well-meaning as this sounds, reverse mortgages cost more than regular mortgages, both at closing and during the life of the loan. With both types of loans, borrowers pay mortgage insurance, but with a regular mortgage, borrowers can avoid mortgage insurance with a down payment of at least 20%, but not with a reverse.The reverse mortgage premium equals 0.5% for a loan equal to 60% or less of the appraised value of the home. The premium jumps to 2.5% if the loan totals more than 60% of the home’s value. If a home is appraised at $450,000 and a $300,000 reverse mortgage is taken out, it will cost you an additional $7,500 on top of all of the other closing costs. Annual mortgage insurance premium is .5% of the outstanding mortgage balance.Most of the fees and costs can be rolled into the loan, but unlike a regular mortgage, which compounds interest on a lower amount each month, a reverse mortgage compounds interest on a higher number.Despite the promotion of reverse mortgages to address the lack of retirement assets held by an aging population, less than 2% of eligible households take out reverse mortgages, which is small given that nearly 80% of retired households own a home, compared to only about 50% with retirement assets, and given that retirement security for many households is considered to be precarious. Several factors could positively influence growth, namely, aging population not just in the United States but throughout the world (approximately 18% of U.S. population is over 62 years old); housing wealth continues to increase; and retirees prefer to age in place. Other factors negate growth, such as complexity and cost of reverse mortgages; a perception that reverse mortgages are a last resort; and the desire to leave an inheritance.Suggested improvements for the program include lowering initial and ongoing HECM product costs, expansion of private lenders, improvement of the availability of long-term care insurance, and tightening of Medicaid eligibility rule. These changes could increase HECM loans to approximately 12–14 % of all retired households, which would minimize government exposure and better target borrowers. Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Michelle Garcia Gilbert Data Provider Black Knight to Acquire Top of Mind 2 days ago default Reverse Mortgage 2020-01-10 Seth Welborn Demand Propels Home Prices Upward 2 days ago Tagged with: default Reverse Mortgage Share Save The Best Markets For Residential Property Investors 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 Servicers Navigate the Post-Pandemic World 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Editor’s note: This feature originally appeared in the January issue of DS News, out now.In 1961, Deering Savings & Loan officer Nelson Haynes in Portland, Maine, originated the first reverse mortgage to Nellie Young, the widowed wife of Haynes’s high school football coach. Mrs. Young continued to live in her home after losing her husband with the help of this loan.In 1969, UCLA Professor Yung Ping Chen testified before the Senate Committee on Aging that he supported an “actuarial mortgage plan in the form of a housing annuity” that would allow homeowners to stay in their home based upon their home equity.In 1983, the Senate approved a proposal to have reverse mortgages insured by the Federal Housing Administration (FHA), and in 1987, Congress passed the FHA insurance bill called the Home Equity Conversion Mortgage Demonstration. President Ronal Reagan signed the bill into law in 1988, and HUD began insuring reverse mortgage through FHA.The first FHA-insured reverse mortgage was originated in 1989, and 157 loans were issued in 1990, with a peak of 114,692 in 2009. According to HUD, 48,359 reverse mortgages were originated in 2018, the decrease attributable to the market crash 10 years earlier.Other countries use reverse mortgages, which are being touted as a policy strategy for aging population not prepared for retirement. In Canada, where the industry is entirely private, reverse mortgages grew 40% between 2017 and 2018. The Australian government began a government-sponsored equity release program in 2018 for homeowners over the age of 65, which may continue to expand as private lenders leave the reverse market. China—which has 241 million people over the age of 60 as of December, 2017, amounting to 17% of that country’s population—began promoting reverse mortgages in 2013, though there is only one company offering them, and only 132 people have taken out the mortgages to date. The Chinese people typically leave property to their children, so there is a cultural prejudice against reverse mortgages.A review of the reverse mortgage starts with its definition, and then how it works, who qualifies for one, its protections, and the risk involved with a reverse mortgage. The analysis is based on the Home Equity Conversion Mortgage (HECM) program reverse mortgage, which is insured under the Federal Housing Administration (FHA) and accounts for all but a handful of reverse mortgages.The stated purpose of the HECM program, FHA’s reverse mortgage program, is to ease the financial burden on elderly homeowners facing increased health, housing, and subsistence costs at a time of reduced income. The FHA’s mission is to serve underserved markets which must be balanced with U.S. Department of Housing and Urban Development’s (HUD) obligation under the National Housing Act to protect the FHA insurance funds.Pursuant to 15 USCS §1602(cc), “the term ‘reverse mortgage transaction’ means a non-recourse transaction in which a mortgage, deed of trust, or equivalent consensual security interest is created against the consumer’s principal dwelling:securing one or more advances; andwith respect to which the payment of any principal, interest, and shared appreciation or equity is due and payable (other than in the case of default) only after:the transfer of the dwelling;the consumer ceases to occupy the dwelling as a principal dwelling; orthe death of the consumer. Michelle Garcia Gilbert is president and CEO of the Gilbert Garcia Group, a Florida firm specializing in default services, creditors law, and REO. She has worked in foreclosure and creditors firms since 1989. last_img read more

The Socioeconomic Impact of Postforeclosure Sales

first_img Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Foreclosure, Investment, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Share Save The Socioeconomic Impact of Postforeclosure Sales Many foreclosures during the recession occurred in minority or disadvantaged neighborhoods, the Joint Center for Housing Studies of Harvard University (JSHS) notes, but in a paper recently published in City and Community, Jackelyn Hwang, Assistant Professor of Sociology at Stanford, takes a closer look at how foreclosure purchases shift at the neighborhood level, with a focus on Boston.In her study, titled “Racialized Recovery: Postforeclosure Pathways in Boston Neighborhoods,” Hwang found that many differences are tied to management practices. Hwang found that corporations were more likely to purchase foreclosed properties in predominantly black neighborhoods. Meanwhile, owner‐occupants were more likely to purchase foreclosures in hard‐hit mixed‐ethnoracial neighborhoods with substantial shares of non‐Hispanic/Latinx whites.Foreclosures in Boston are heavily concentrated in black neighborhoods, and as JSHS notes, over 80% of Boston’s foreclosures occured in just five of the city’s 15 planning districts, which make up just 30% of Boston’s housing units.“Compared to the city as a whole, the high-foreclosure block groups were, on average, home to about half as many whites and twice as many blacks,” said David Luberoff is Deputy Director of the JSHS. “However, high-foreclosure block groups were not the city’s most disadvantaged areas, which have large numbers of publicly subsidized housing units that are not likely to be subject to foreclosure.”According to Hwang, corporations were more likely to resell previously foreclosed properties to other investors and have reported maintenance issues against them. With this in mind, Hwang’s study alleges that “predominantly black neighborhoods hit hard by foreclosures in Boston were left further behind in the recovery from the housing crisis compared to other hard‐hit neighborhoods.”Stabilization, Hwang notes, would “require resources and incentives for both owner‐occupants and investors—both small and large—to maintain their properties and for investors to fill properties with long‐term renters.”Hwang’s complete study can be found here. Boston Foreclosure Investment Postforeclosure 2020-01-20 Seth Welborn Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. January 20, 2020 2,606 Views About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / The Socioeconomic Impact of Postforeclosure Sales Tagged with: Boston Foreclosure Investment Postforeclosurecenter_img Previous: Laudan Closing Property Preservation Business, Shifting Focus to Inspections Next: Keeping Afloat in Financial Services Law The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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 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  Print This Post Subscribe Sign up for DS News Daily last_img read more

Richard Cordray Reviews His Time at CFPB

first_imgHome / Daily Dose / Richard Cordray Reviews His Time at CFPB Subscribe Servicers Navigate the Post-Pandemic World 2 days ago CFPB Cordray 2020-02-28 Seth Welborn The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: CFPB Cordray Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily 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 agocenter_img Related Articles In an upcoming book, inaugural Consumer Financial Protection Bureau (CFPB) Director Richard Cordray discusses his time as Director, from the Bureau’s inception to the current administration.In an interview with The Columbus Dispatch, Cordray spoke about the book, titled Watchdog: How Protecting Consumers Can Save Our Families, Our Economy, and Our Democracy, detailing why the CFPB was deemed necessary.“In the leadup to the financial crisis, which occurred almost a decade ago and was the worst economic collapse we had suffered in the United States since the Great Depression, it became understood among people in Washington that there was a hole in the system,” Cordray said. “There was nobody looking out for consumers in the financial marketplace.”According to American Banker, Cordray also covers his time at CFPB during the beginning of the Trump Administration.Cordray writes that he believed President Trump was on the verge of forcing him out at the beginning of November 2017.“I received an unscheduled call from the White House, and a secretary asked me to hold to speak with the president, but then the call was abruptly terminated,” Cordray writes.The book notes that the agency’s response to Wells Fargo’s bogus-accounts scandal in 2016 was a “seminal moment” for the CFPB. Cordray says Wells Fargo’s effort to downplay the scandal was “spin” that “was crushed by the facts and by the ensuing public outrage.”Wells Fargo is currently set to pay $3 billion as part of its settlement with the Securities and Exchange Commission and the Department of Justice after the SEC charged the bank with misleading investors after opening fake accounts. Wells Fargo’s penalties include $500 million to the SEC.”The Wells Fargo matter is an object lesson in how small risks can balloon into large ones in any profit-making entity if they are not monitored closely,” he writes.Watchdog: How Protecting Consumers Can Save Our Families, Our Economy, and Our Democracy, on The Columbus DIspatch, releases March 2. Previous: National Bankruptcy Services Announces New SVP Next: Recognizing Excellence in Servicing Governmental Measures Target Expanded Access to Affordable Housing 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. About Author: Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago February 28, 2020 4,679 Views Richard Cordray Reviews His Time at CFPB in Daily Dose, Featured, Government, News Share Save  Print This Postlast_img read more

HUD Reminds States to Use Government Grants to Help Homeowners

first_img Data Provider Black Knight to Acquire Top of Mind 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. The Week Ahead: Nearing the Forbearance Exit 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 Demand Propels Home Prices Upward 2 days ago  Print This Post The U.S. Department of Housing and Urban Development (HUD) Friday issued a reminder to all grantees–states, cities, communities, and nonprofits-who received Emergency Solutions Grants (ESG) or Community Development Block Grant (CDBG) fund–that they may use these funds to provide rental assistance or other aid to individuals experiencing financial hardship because of the pandemic and are at risk of being evicted, consistent with applicable laws, regulations, and guidance, according to a statement Friday.The HUD announcement further stated “reiteration” of the recent White House and CDC decision to expand a moratorium on evictions, noting the administration’s “commitment to minimize displacements and evictions resulting from the COVID-19 global pandemic” and “fighting the spread of COVID-19 by providing assistance to renters and homeowners.“In the context of a pandemic, eviction moratoria—like quarantine, isolation, and social distancing—can be an effective public health measure utilized to prevent the spread of communicable disease,” the CDC last week stated in writing. “Eviction moratoria facilitate self-isolation by people who become ill or who are at risk for severe illness from COVID-19 due to an underlying medical condition.”  “From day one of this pandemic, the administration has done everything in our power to ensure that the American people have a roof over their heads during these trying times,” said HUD Secretary Ben Carson.Some housing advocates have said they expect more from the administration.National Association of Realtors (NAR), for example, stated “appreciation and support of administration efforts to ensure struggling Americans can remain in their homes,” however,  NAR President Vince Malta went on to say, “this order as-written will bring chaos to our nation’s critical rental housing sector and put countless property owners out of business.” “Any eviction moratorium must also come with rental assistance for property owners, the vast majority of which are mom-and-pop investors and are still required to meet their financial obligations even as they cease to receive income on their properties,” Malta said. “NAR strongly encourages Congress to pass immediate legislation that would instead provide emergency rental assistance programs directly to housing providers.” Some grantees already have put CARES funds into effect as HUD has suggested.Illinois Governor JB Pritzker and the Illinois Housing Development Authority (IHDA), for instance, announced the opening of the state’s new Emergency Mortgage Assistance (EMA) program to assist homeowners who have seen their income decline due to the COVID-19 pandemic. Through the EMA program, IHDA will allocate grants up to $15,000 to help income-eligible homeowners who have struggled to make their mortgage payments as a result of the pandemic. IHDA expects to assist approximately 10,000 households before the end of 2020.“At a time when the connection between housing and health is clearer than ever, it is critically important that we keep families stably housed for individual well-being, public health and the recovery of our state’s economy,” Pritzker told the Canton Daily Ledger. “My administration remains committed to doing everything we can to provide much-needed support for Illinois residents who have been hit hardest by the pandemic, which is why we created the largest state housing assistance programs in the nation in response to the COVID-19 pandemic to date. The Emergency Mortgage Assistance program will provide critical support for our homeowners, giving them the time they need to regain their financial footing.”HUD stated that it “continues to provide technical assistance to grant recipients to prevent evictions and keep people in their homes throughout the duration of the COVID-19 pandemic.”Since the outbreak of COVID-19, “the Department provided virtual office hours for grantees to ensure relief funds are being used quickly and efficiently. HUD has issued a toolkit for landlords and Public Housing Authorities so they can work with their tenants during this difficult financial time. Additionally, HUD has extended its Single-Family eviction and foreclosure moratorium for FHA insured Single-Family homes three times, has promoted the Department’s Housing Counselor services, and issued guidance for lenders,” according to its statement. Share Save HUD Reminds States to Use Government Grants to Help Homeowners 2020-09-07 Christina Hughes Babb Home / Daily Dose / HUD Reminds States to Use Government Grants to Help Homeowners Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News 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 About Author: Christina Hughes Babb Previous: The Week Ahead: The Need for Financial Aid During Pandemic Next: Why Investing in Single-Family Rentals is ‘A Good Bet’ Related Articles September 7, 2020 1,531 Views Sign up for DS News Daily Subscribelast_img read more