June 1, 2021
  • 5:14 am Decline in Foreclosures Outpaces Decline in Loan Modifications
  • 5:12 am New York AG Proposes New Expanded Bill to Reduce Zombie Properties
  • 5:12 am Ocwen Reports Preliminary Net Income of $34 Million for Q1
  • 5:09 am Freddie Mac Updates Servicing Guidelines
  • 5:08 am Low-Income Rental Housing Shortages Happening Nationwide

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Recovery Expected to Enter ‘Middle Innings’ in 2014 Next: New CFPB Rules Create Stifling Credit Conditions The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Decline in Foreclosures Outpaces Decline in Loan Modifications Foreclosure HAMP HOPE NOW Alliance Loan Modification Short Sale 2014-01-24 Carrie Bay Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, Loss Mitigation, Market Studies, News  Print This Post About Author: Carrie Bay Subscribe January 24, 2014 1,323 Views center_img Decline in Foreclosures Outpaces Decline in Loan Modifications Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Foreclosure HAMP HOPE NOW Alliance Loan Modification Short Sale Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English. Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago An estimated 44,000 homeowners received permanent loan modifications from mortgage servicers during the month of November under both proprietary servicer programs and the government’s Home Affordable Modification Program (HAMP), HOPE NOW reports. While that total represents a 12 percent decrease from the 50,000 loan mods completed in October, the most recent data show a steeper 20 percent decline in foreclosure sales and a 17 percent decline in foreclosure starts between October and November.The 44,000 loan mods granted in November brings the total number to approximately 6.8 million since HOPE NOW began tracking the data in 2007. Some 5.5 million homeowners have received proprietary loan modifications since 2007, and another 1,297,954 have received HAMP modifications.“As we approach the seven million mark for completed loan modifications, we remain convinced that the collaborative efforts of the industry, non-profits, government agencies and local community groups continues to make a positive impact on the nation’s housing market,” commented Eric Selk, executive director of the private-sector alliance of mortgage servicers, investors, mortgage insurers, and nonprofit counselors. Sign up for DS News Daily Related Articleslast_img read more

READ MORE

first_img Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Blight Eric Schneiderman Foreclosures New York Attorney General Zombie Foreclosures New York Attorney General Eric Schneiderman announced on Monday that he plans to introduce an expanded version of the bill he proposed last year reduce the number of zombie properties in the state.The goal of Schneiderman’s new proposed Abandoned Property Neighborhood Relief Act is to cut down on the increasing number of residential properties that fall into disrepair when they are abandoned by owners during the foreclosure process and subsequently not maintained by mortgagees. Such properties are often referred to as “zombie properties.”Speaking at the New York State Association of Towns’ 2015 Training School and Annual Meeting on Monday, where he announced his intention to introduce the expanded legislation, Schneiderman said the number of zombie properties in New York increased by almost 50 percent in 2014 compared to 2013, which amounted to about 16,700 zombie properties. Scheneiderman quoted data that in the 10 counties in New York with the most zombie properites, approximately 42 percent of properties in foreclosure are abandoned before the lengthy process is finished. When the bank fails to maintain these properties, they fall into disrepair, which in turn lowers property values of surrounding houses and invites vandalism and violent crime.”Leaving zombie properties to rot is unfair to municipalities and unfair to neighbors, who pay their taxes and maintain their homes,” Schneiderman said. “In the next two weeks, my office will resubmit to the Legislature our bill that would require banks to take responsibility for maintaining properties much earlier in the foreclosure process, take that burden off of towns and cities, and allow local governments to more easily identify the mortgagees of these properties to make sure they maintain them. And as my office enforces the requirement that banks take responsibility for these properties, any fines we levy will go into a fund to help towns and cities hire more code enforcement officers.”The proposed Abandoned Property Neighborhood Relief Act addresses the problem of homeowners who may be unaware of their legal rights abandoning their homes once they receive a foreclosure notice. The new bill requires mortgagees to provide homeowners with early notice that they are legally entitled to remain in their homes until a court orders them to leave. Also as part of the new bill, mortgagees are required to identify, secure, and maintain vacant properties soon after they are abandoned rather than at the end of the foreclosure process. The bill requires mortgagees and their loan servicing agents to periodically inspect properties with delinquent mortgages to ensure that they are occupied. The bill also makes it unlawful for a mortgagee or anyone acting on the mortgagee’s behalf to enter an occupied property and intimidate, harass, or coerce a lawful occupant into vacating the property.”Many vacant and abandoned properties are a significant source of blight, magnets for criminal activity, negatively impact property values and detract from residents overall quality of life,” Binghamton Mayor Richard C. David said. “This issue impacts cities across the nation and the Attorney General’s proposal to hold mortgage lenders more accountable and provide a strategy to keep these properties from deteriorating will ultimately protect homeowners and improve the integrity of our neighborhoods.”The Abandoned Property Neighborhood Relief Act is part of Schneiderman’s broader strategy to help New York homeowners and communities recover from the foreclosure crisis, according to Schneiderman’s announcement. His other actions toward obtaining this strategy include securing $2 billion in a National Mortgage Settlement to help financially struggling families and dedicating $100 million of that money to the Homeowner Protection Program (HOPP), which provides housing counseling and free foreclosure prevention legal services to struggling homeowners in New York. According to Schneiderman’s office, HOPP has helped 39,000 families in the state as of December 2014. New York AG Proposes New Expanded Bill to Reduce Zombie Properties Previous: LenderLive Names SVP of Operations for Settlement Services Division Next: Lawmakers Discuss Use of RMBS Settlement Funds at House Judiciary Committee Hearing Blight Eric Schneiderman Foreclosures New York Attorney General Zombie Foreclosures 2015-02-16 Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / New York AG Proposes New Expanded Bill to Reduce Zombie Properties in Daily Dose, Featured, Foreclosure, Newscenter_img About Author: Brian Honea Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Share Save February 16, 2015 1,440 Views Sign up for DS News Daily last_img read more

READ MORE

first_img Earnings Statements Mortgage Servicers Ocwen Financial Profits 2015-04-30 Brian Honea Subscribe About Author: Brian Honea in Daily Dose, Featured, News Ocwen Reports Preliminary Net Income of $34 Million for Q1 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. Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Credit Trends in Mortgage Insurance Drive Strong Q1 for Radian Next: DS News Webcast: Friday 5/1/2015 Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago April 30, 2015 759 Views center_img The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save  Print This Post Ocwen Financial rebounded from a tumultuous 2014 that included legal troubles, multi-million dollar settlements, ratings downgrades, and several multi-billion sales of MSR portfolios with a preliminary Q1 2015 net income of $34 million, or $0.27 per share, according to an announcement from the company on Thursday afternoon.Atlanta-based Ocwen, one of the largest non-bank mortgage servicers in the nation, posted a total write-down of $546 million for the full year of 2014. In Q1 2014, the company reported a total net income of $60.5 million, or $0.43 per share. The company’s Q1 2015 preliminary revenue of $510.4 million represents a 7 percent year-over-year decline, and preliminary income from operations dropped from $202.1 million in Q1 2014 down to $132.1 million in Q1 2015. Meanwhile, preliminary cash flow from operating activities for Q1 totaled $323 million, a year-over-year increase of 65 percent.”I am proud of what we have accomplished as far as managing the business through this difficult transition period. We made great progress on our asset sale strategy, have returned to profitability and continue to generate substantial operating cash flow,” said Ron Faris, President and CEO of Ocwen. “However, I am not satisfied with only making $34 million in the quarter. We intend to do better.”Factors that influenced Ocwen’s pre-tax income during Q1 were as follows: A gain of $26.9 million from an MSR sale of Freddie Mac performing loans with an unpaid principal balance of $9.1 billion, a gain of $12.9 million on a sale of legacy performing and non-performing whole loans; an impairment charge of $17.8 million due to the fair market value decline of government-insured MSRs (which was primarily the result of the FHA lowering the mortgage insurance premiums by 50 basis points early in the year; monitor costs of $9.0 million; strategic advisor expenses and fair value-related charges of $8.4 million and $8.3 million, respectively. Also during Q1, Ocwen’s lending segment was responsible for generating $16.0 million of pre-tax income.The results Ocwen announced Thursday were preliminary; the company announced that it plans to file its 2014 Form 10-K and Q1 2015 Form 10-Q on or before May 29. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Earnings Statements Mortgage Servicers Ocwen Financial Profits Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Ocwen Reports Preliminary Net Income of $34 Million for Q1last_img read more

READ MORE

first_img  Print This Post Tagged with: Fannie Mae FHFA Freddie Mac GSEs Servicing Guidelines The Best Markets For Residential Property Investors 2 days ago Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected] September 13, 2017 2,305 Views About Author: Joey Pizzolato Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save in Daily Dose, Featured, Government, Headlines, News, REO, Secondary Market Demand Propels Home Prices Upward 2 days ago Previous: Census Bureau: Optimistic Outlook for Economy Next: Scott Arnold Promoted to SVP of Finance at DIMONT The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Freddie Mac Updates Servicing Guidelines Fannie Mae FHFA Freddie Mac GSEs Servicing Guidelines 2017-09-13 Joey Pizzolatocenter_img Freddie Mac released a join bulletin with Fannie Mae Wednesday that updates its guidelines for standard servicing policies, which are unrelated to its special initiatives to aid those effected by the hurricanes that have ravaged the continental United States.In order to provide a better borrower experience for consumers, and under the direction of the Federal Housing Finance Agency, the GSEs have made amendments to requirements to complete Borrower Response Packages, including hardship, income, and other documentation involved with Guide Form 710: Uniform Borrower Assistance Form to Mortgage Assistance Application. According to the bulletin, these changes will reduce supporting documentation required for the form and, “provide a more flexible, streamlined application process for Borrowers and evaluation process for Servicers.”Freddie Mac will be making changes to the following categories of the form: borrower information, hardship information, property information, and borrower income and required income documentation. The form will no longer require information regarding to monthly household expenses.The GSE will also be making changes to the information required for self-employed individuals, income calculations for calculating gross income. Servicers will also be required to include non-borrower household income. These changes will be effective starting June 1, 2018.In order to help maintain the preservation and maintenance of REO and abandoned properties, the GSEs have also increased the reimbursement limits for servicers, which will go into effect October 9 this year. Maintenance covered includes: yard maintenance, property cleaning and waste removal, and other miscellaneous expenses, such as mold treatment, fence repair, extermination and HVAC repair.Freddie Mac will also allow up to $2,000 in reimbursement for expenses related to clear-boarding windows. This stipulation will go into effect on September 25, 2017.To view the bulletin in its entirety, along with related expense codes, click here. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Freddie Mac Updates Servicing Guidelines Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Subscribelast_img read more

READ MORE

first_img Tagged with: Affordability inventory shortages low-income housing Rent prices Rental Rental Costs Single Family Rental The Best Markets For Residential Property Investors 2 days ago March 26, 2018 2,962 Views Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Low-Income Rental Housing Shortages Happening Nationwide Previous: Why Is Morale Declining in Homebuying Market? Next: Offsetting Housing and Environmental Stresses as Cities Expand in Daily Dose, Featured, Journal, Market Studies, News, REO, Secondary Market Home / Daily Dose / Low-Income Rental Housing Shortages Happening Nationwide David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] The nationwide shortage of housing inventory is a daily topic in the industry in 2018, with accelerating home prices combining with inventory shortfalls to make it very difficult for many potential homebuyers to find an actual home to purchase. The problem also extends to the rental side of things, with rent prices also increasing and renting becoming an increasingly popular option for many would-be homebuyers who decide renting is a better or more economically feasible option than saving up for a downpayment on a home. However, those inventory shortages are hitting the low-income segment of the population particularly hard, according to a report by the National Low Income Housing Coalition (NLIHC).The NLIHC has released its 2017 Gap Report, spotlighting the widespread shortage of affordable housing within the U.S. rental market. The Gap report defines “low-income renters” as those “whose income is at or below the poverty guideline or 30% of their area median income.” The NLIHC report found that, on average, only 35 affordable and available rental homes exist for every 100 extremely low-income renter households. Those statistics vary from market to market, ranging from 15 available and affordable rental homes for every 100 renters in Nevada, but coming in at 61 for every 100 renters in Alabama.The NLIHC report found that the 11.4 million extremely low-income (ELI) renter households accounted for 26 percent of all U.S. renter households, and 10 percent of all households overall. The U.S. marketplace is short 7.4 million affordable and available rental homes for ELI renters. To make matters worse, the report states that 71 percent of ELI renter households are “severely cost-burdened,” spending more than half of their income on rent and utilities.States with the greatest percentage of severely cost-burdened ELI renter households include  Nevada (83 percent), Florida (79 percent), California (77 percent), Oregon (76 percent), Hawaii (75 percent), Colorado (75 percent), and Virginia (75 percent). The degree of the shortages varies significantly by state, but the problem is nationwide. Wyoming is short 8,731 available and affordable rental homes for ELI renters. California, already known to be suffering severe inventory shortages across the board, is short by 1,110,803. According to the report, The states where ELI renters face the greatest challenge in finding affordable and available homes are Nevada, with only 15 affordable and available rental homes for every 100 ELI renter households, California (21 homes for every 100 ELI renter households), Arizona (26 homes for every 100 ELI renter households), Oregon (26 homes for every 100 ELI renter households), Colorado (27 homes for every 100 ELI renter households), and Florida (27 homes for every 100 ELI renter households).You can read the full NLIHC Gap report by clicking here. The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: David Wharton The Best Markets For Residential Property Investors 2 days ago Affordability inventory shortages low-income housing Rent prices Rental Rental Costs Single Family Rental 2018-03-26 David Wharton Share Save Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days agolast_img read more

READ MORE

first_img About Author: Radhika Ojha The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago After making housing finance reforms a key focus area for the Senate Banking Committee, its Chairman Sen. Mike Crapo, introduced an outline for housing finance reform legislation.The outline, according to a statement by Crapo, incorporates elements of the various “plans and principles for housing finance reform that have been previously discussed by legislators, analysts, stakeholders, and thought leaders.” It highlights five points that would help create a more sustainable housing finance system, which includes:Private companies as guarantors for the timely repayment of principal and interest to investors of eligible mortgages that are securitized through a platform operated by Ginnie Mae.Changing the Federal Housing Finance Agency’s (FHFA’s) structure to run it as a bipartisan board of directors instead of a single Director to charter, regulate, and supervise the guarantorsUtilizing Ginnie Mae to guarantee timely repayment of principal and interest on securities that receive credit enhancement from guarantors that are approved and regulated by the FHFAPutting a cap on the percentage of all outstanding guaranteed eligible mortgages that a guarantor is permitted within a stipulated timeline as well as ensuring a timeline within which all guarantors are required to be fully capitalized after the enactment of the legislationReplacing the current affordable housing goals and duty-to-serve requirements with a new Market Access Fund which will provide grants, loans, and credit enhancements to address the homeownership and rental housing needs of the underserved and low-income communities“We must expeditiously fix our flawed housing finance system,” Crapo said. “My priorities are to establish stronger levels of taxpayer protection, preserve the 30-year fixed rate mortgage, increase competition among mortgage guarantors, and promote access to affordable housing. I invite my Senate and House colleagues, the Administration and all interested stakeholders to work together to enact this critically needed reform.”Additionally, he said that this proposal would create a more sustainable housing finance system that would not only reduce the too-big-to-fail risk posed by the current duopoly of mortgage guarantors but would also significantly increase the role of private risk-bearing capital while preserving the existing infrastructure in the housing finance system that works well. According to Crapo, this plan would also ensure the establishment of “several new protection between mortgage credit risk and taxpayers” as well as a “level playing field for originators of all sizes and types.””Protecting American taxpayers by ensuring the safety and stability of the United States housing finance system is a priority for the Treasury Department,” said Treasury Secretary Steven Mnuchin, in response to the outline released by Crapo. “The outline for housing reform legislation released by Chairman Crapo is a productive first step toward that goal, and I applaud him for his efforts.”Supporting this outline, Michael Bright, President and CEO of the Structured Finance Industry Group and former Acting President at Ginnie Mae said that while the current structure of conservatorship had helped America transition from the crisis to economic growth, “A future state for housing finance should have clearly defined roles for who is taking on risk, private capital, or the government. It must also ensure that our housing market works for all Americans.”Eric Kaplan, Director of the Milken Institute of Housing Finance Program also applauded the outline saying, “Upon initial review, this outline has the potential to achieve many of the housing finance reform principles and objectives we support.”Additionally, Kaplan said that the outline was important in that it built up last year’s active legislative debate and “reflects the importance of maintaining serious housing finance reform momentum.”This legislation outline comes close on the heels of the White House’s announcement that it would announce a framework for “the development of a policy for comprehensive housing finance reform shortly,” and that it had not yet made a decision on any housing finance reform plan. The announcement was made within weeks of FHFA Acting Director, Joseph Otting’s remarks to staffers that the agency would be announcing plans to remove the GSEs from conservatorship soon. Home / Daily Dose / Crapo’s 5-Point Plan for Housing Finance Reform Share Save  Print This Post The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe Tagged with: Fannie Mae FHFA Freddie Mac Ginnie Mae GSEs housing finance reforms loans Securitization Sen Mike Crapocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Churchill Mortgage Promotes Liliana Nigrelli Next: Looking for Solutions Data Provider Black Knight to Acquire Top of Mind 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Crapo’s 5-Point Plan for Housing Finance Reform Fannie Mae FHFA Freddie Mac Ginnie Mae GSEs housing finance reforms loans Securitization Sen Mike Crapo 2019-02-01 Radhika Ojha in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago Related Articles February 1, 2019 2,552 Views Sign up for DS News Daily last_img read more

READ MORE

first_img FHFA: 30 Years of Protecting Homeowners February 13, 2019 4,016 Views Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] Previous: Ginnie Mae Outstanding MBS Steady at $2T Threshold Next: The 20 Hottest Housing Markets Data Provider Black Knight to Acquire Top of Mind 2 days ago The Federal Housing Finance Agency (FHFA) put together a comprehensive account of the evolution of default risk for newly originated home purchase loans since 1990. It included several data sources to track a large number of loan characteristics and a summary measure of risk—the stressed default rate. One of the key findings of the paper is that mortgage risk had already risen in the 1990s, planting the seeds of the financial crisis well before the actual event. The findings also cast doubt on explanations of the crisis that focus on low-credit-score borrowers, the paper indicated. According to FHFA, there is still no comprehensive account of the changes in mortgage risk that produced the worst foreclosure wave since the Great Depression. The paper by FHFA is an effort to fill that gap, covering essentially the entire market for home purchase loan originations in the United States from 1990 to 2017. Data sources also include the full set of home mortgages guaranteed by the government-sponsored enterprises Fannie Mae and Freddie Mac (the GSEs). To FHFA’s knowledge, this is the first time the entire GSE book has been used in publicly-available research on mortgage risk. The paper shows that across the entire market, the average Combined Loan to Value (CLTV) on new home purchase loans increased substantially in the first half of the 1990s, and the average Debt-to-Income (DTI) trended sharply higher starting in 1992.  The stressed default rate for the purchase loan market was already above the levels seen in the 1990s, with the largest increase for loans bundled into private-label securities (PLS) by 2000. It also noted that credit standards across the market eased in the early and mid-2000s. To cleanly identify changes in credit supply, the analysis is limited to loans for which lenders and investors fully bear the credit risk – private sector loans with no government guarantee and no private mortgage insurance. Data also revealed that mortgage risk for the market as a whole dropped and then swung back up between 1990 and 1995, followed by a gradual upward trend through 2003 and a steep rise over 2004-2006. Mortgage risk declined sharply as credit standards tightened in the wake of the housing bust. In recent years, the risk measure has edged higher, but as of 2017 it remained near the bottom of the range observed since 1990, the paper noted.  The shift in the stressed default rate over the first half of the 1990s is reflective of factors such as tightening of mortgage lending standards during the second half of 1990 and throughout 1991, likely in response to the 1990-91 recession, followed by a considerable easing of standards in 1993 and 1994. The tightening occurred partially due to lenders clamping down on loans with less than full documentation, according to researchers at FHFA. Mortgage rates were cited as one of the factors that influenced stressed default rate. The 30-year fixed mortgage rate fell from roughly 10 percent in 1990 to 7.3 percent in 1993. This was in response to a substantial easing of monetary policy. In 1994, as the Federal Reserve reversed course by raising the rate to more than 1 percentage point. These changes in mortgage rates led to a drop in the average DTI through 1993 and then boosted it in 1994, which showed through to the stressed default rate. Moreover, with the decline in rates, many borrowers switched to 15- and 20-year loans, which are notably less risky than 30-year loans. In conclusion, the paper stated that in today’s market, the overall risk is “near all-time lows, despite high average DTIs and CLTVs, as risky product features have largely disappeared and average credit scores remain elevated.” It added that this highlights that the post-crisis regulatory environment succeeded, at least through 2017, in limiting mortgage risk. Read the full report here. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily About Author: Donna Joseph Share Save Tagged with: Fannie Mae FHFA Freddie Mac Housing Bust Mortgage Rates Stressed Default Rate Fannie Mae FHFA Freddie Mac Housing Bust Mortgage Rates Stressed Default Rate 2019-02-13 Donna Joseph Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days agocenter_img Home / Daily Dose / FHFA: 30 Years of Protecting Homeowners Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News, Servicing The Week Ahead: Nearing the Forbearance Exit 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 Subscribe  Print This Postlast_img read more

READ MORE

first_img FHFA Director Mark Calabria Gives Update on Fannie and Freddie 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. Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Seth Welborn Previous: Dorian Could Bring Losses of More Than $1B Next: Risk Management Solution Provided by Oversight Platform Tagged with: Fannie Mae FHFA Freddie Mac in Daily Dose, Featured, Government, News, Secondary Market The Federal Housing Finance Agency FHFA is working on a plan for Fannie Mae and Freddie Mac, and in this Video Spotlight, FHFA Director Mark Calabria discusses how quickly the GSEs can be put back into private hands. Calabria appeared on Bloomberg to discuss where the FHFA and the Treasury Secretary currently sit on GSE reform. Part of the plan involves reducing Fannie and Freddie ‘s footprint.The Trump administration released its plan for housing finance reform earlier this month, more than a decade after the Great Recession sent the GSEs into conservatorship.According to the department, the Treasury Housing Reform Plan consists of a series of recommended legislative administrative reforms aimed to “protect American taxpayers against future bailouts,” preserve the 30-year-fixed-rate mortgage, and help guide Americans toward the path to homeownership.“The Trump Administration is committed to promoting much needed reforms to the housing finance system that will protect taxpayers and help Americans who want to buy a home,” said Treasury Secretary Steven Mnuchin in a release. “An effective and efficient Federal housing finance system will also meaningfully contribute to the continued economic growth under this Administration.”Fannie Mae and Freddie Mac suffered significant losses due to their structural flaws and lack of sufficient oversight during the financial crisis of 2008. The GSEs received more than $190 billion from the Treasury Department.According to Calabria, Fannie and Freddie won’t go to market until the end of 2020. Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Fannie Mae FHFA Freddie Mac 2019-09-17 Seth Welborn The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago September 17, 2019 1,725 Views Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / FHFA Director Mark Calabria Gives Update on Fannie and Freddie The Best Markets For Residential Property Investors 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily last_img read more

READ MORE

first_img About Author: Seth Welborn October 17, 2019 1,477 Views default Foreclosure 2019-10-17 Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: The Bright Side of Residential Investment Next: House Financial Services Committee Discusses D&I in the Workforce in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Default Rates Inching Upward Across the Board 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. Default Rates Inching Upward Across the Board The first mortgage default rate increased four basis points to 0.73% in September 2019, according to the latest S&P/Experian Consumer Credit Default Indices. The indices represent a measure of changes in consumer credit defaults and show that the composite rate rose one basis point to 0.93%.Outside of mortgage defaults, the bank card default rate fell 41 basis points to 3.32%, and the auto loan default rate was up seven basis points to 1.05%.Three of the five major metropolitan statistical areas (MSA) showed higher default rates compared to last month. Chicago showed the largest increase, up 14 basis points to 1.19%. The default rates for New York and Miami each rose two basis points, to 0.96% and 1.30% respectively. The rate for Dallas was unchanged at 0.93%. Los Angeles was the only MSA with a decrease in default rates, down five basis points to 0.72%.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 ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Tagged with: default Foreclosure Related Articles Sign up for DS News Daily 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 The Best Markets For Residential Property Investors 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

READ MORE

first_img Share Save Reaction to CFPB’s Proposed Foreclosure-Avoidance Actions Servicers Navigate the Post-Pandemic World 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 Subscribe About Author: Christina Hughes Babb Related Articles Sign up for DS News Daily April 8, 2021 2,139 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago 2021-04-08 Christina Hughes Babb in Daily Dose, Featured, Foreclosure, News  Print This Post Previous: Homeowners Experience Largest Property Tax Hike in Four Years Next: Mortgage Connect Names Ian Morgan as Chief Information Security Officer Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Reaction to CFPB’s Proposed Foreclosure-Avoidance Actions In order to prevent a tide of foreclosures that could overwhelm servicers, the Consumer Financial Protection Bureau (CFPB) earlier this week proposed a number of actions, including rules that would push potential filings out to January 2022.“Millions of families are at risk of losing their homes to foreclosure in the coming months, even as the country opens back up,”  CFPB Acting Director Dave Uejio said at the time. “[The previous week] we warned that servicers need to be prepared for a high volume of borrowers exiting forbearance, and today, we are proposing additional guardrails and tools for servicers as they navigate the coming months. We will do everything in our power to ensure servicers work with struggling families to find solutions that prevent avoidable foreclosures.”While the move has received support from various organizations and companies, there also are servicers out there who believe that delaying foreclosures another nine months and creating more regulations builds undue pressure on consumers and the nation’s housing market.Richard Kruse, a distressed-asset auctioneer with Gryphon USA, says that although he understands the bureau’s intent, “the CFPB is effectively demanding an immediate and unrealistic overhaul of lending, investment, servicing and mortgage insurance industries, not understanding that the end result will be worse with these rules than allowing the legal system work.”Kruse goes on to suggest that federal and local foreclosure and eviction bans, which have periodically been extended throughout the course of the COVID-19 pandemic, would allow for nonperforming mortgages to be further along in default status, negatively impacting the homeowner once the ban is lifted. It is the “kicking the can down the road” dissent floated by numerous experts over the past months.”Call it what you want … sticking another finger in the dyke, or stacking additional pressure behind a cork that must eventually pop,” Kruse said. “The fact remains that throwing these new rules at the problem will not solve homeowners’ financial distress; it will only delay it. “Other organizations, Wells Fargo, for example, have come out in support of the CFPB’s efforts, while also stating that they will participate in reviewing and commenting on the specific proposed rules.”We are committed to working with the CFPB and other government agencies, the mortgage industry, community leaders, mortgage investors/guarantors, and others in determining how to best serve our customers and communities,” said Wells Fargo representatives in a public statement, “particularly racially and ethnically diverse communities that have been disproportionally impacted by the pandemic.”last_img read more

READ MORE