Month: May 2021 Page 1 of 16

Consumers Show Renewed Confidence in Housing Recovery

first_img 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 Home / Daily Dose / Consumers Show Renewed Confidence in Housing Recovery Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Headlines, Market Studies, News Previous: Declining Refinances Drive Increased Lending Next: California Loses Jobs in January Consumers Show Renewed Confidence in Housing Recovery The Best Markets For Residential Property Investors 2 days ago Share Save Tagged with: Confidence Fannie Mae Home Prices National Housing Survey March 10, 2014 705 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily  Print This Post Confidence Fannie Mae Home Prices National Housing Survey 2014-03-10 Tory Barringer Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago After starting the year on a low note, consumer attitudes toward housing brightened overall in February, according to Fannie Mae.Asked about home price trends over the next year, 50 percent of respondents in Fannie Mae’s February National Housing Survey said they expect improvements, a recovery from a slide to 43 percent in January. A slightly larger number of consumers anticipate price declines—7 percent, up from 6 percent—while the share of those forecasting no significant movement was down to 38 percent.Having dropped 1.2 percentage points to start the year, the average home price change expectation rebounded just as sharply to 3.2 percent, matching the December survey.That renewed confidence in home prices spurred a boost in those saying now is a good time to buy a home; that number was up 3 percentage points from January to 68 percent. At the same time, though, the share of respondents saying they think it would be easy for them to get a mortgage right now retreated from January’s all-time high of 52 percent, falling back to 45 percent.Doug Duncan, SVP and chief economist at Fannie Mae, said the up-and-down nature of the last few surveys fits with the “noisy economic and housing data published over the past few months.”“[W]e’ve seen a corresponding increase in volatility in our survey results, particularly for home price expectations and perceptions about the ease of getting a mortgage,” Duncan said. “Despite the volatile month-to-month changes, we believe that the housing recovery is continuing, but is not yet robust.”Gauging consumer attitudes about the economy, Fannie Mae found Americans were considerably more downbeat than they have been recently. Thirty-five percent of respondents said they believe the economy is on the right track—down 4 percentage points—while 57 percent say it’s on the wrong track, a small bounce after four straight months of declines.Twenty-four percent of consumers said their household income is significantly higher than it was 12 months ago, an increase of 2 percentage points. Meanwhile, 36 percent said their expenses have grown substantially, an increase of 4 percentage points.Noting a 6 percentage point jump over the last two months in the share of consumers citing higher household expenses, Duncan speculated that weather may have played a large role in any declines in economic optimism.“This response would be consistent with higher home heating costs,” he explained.Nevertheless, at least a few consumers seem to think these higher costs will stick: The number of respondents who expect their personal financial situation to improve in the next year fell slightly to 43 percent, while those expecting things to get worse ticked up to 15 percent.last_img read more

Freddie Mac Prices Credit Risk Transaction at Nearly a Half Billion Dollars

first_img Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland.  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News, Secondary Market Share Save Freddie Mac priced its second Structured Agency Credit Risk (STACR) transaction of 2016 at $475 million, according to an announcement from Freddie Mac.The transaction, STACR 2016-HQA1, contains loans with LTVs ranging from 80 to 95 percent, according to Freddie Mac. The reference pool consists of single-family mortgages with an aggregate unpaid principal balance (UPB) of $17.5 billion. The pool contains a subset of 30-year fixed-rate single-family mortgages Freddie Mac acquired during a three month period between April 1, 2015, and June 30, 2015, according to the announcement.“We saw secondary spreads tighten with this transaction,” said Mike Reynolds, VP of Credit Risk Transfer for Freddie Mac. “This may be the reversal of spreads widening.”Co-lead managers and joint bookrunners for the transaction are Barclays and Wells Fargo Securities, according to Freddie Mac. Co-managers are Cantor Fitzgerald, Deutsche Bank Securities, JPMorgan, and Nomura.Freddie Mac began its credit risk transfer sharing initiatives in 2013 as a way to transfer a portion of the risk on residential single-family mortgages to private investors and away from taxpayers.  Last month, Freddie Mac announced enhanced disclosures for its single-family credit risk transfer initiatives that included quarterly updates of credit scores for outstanding loans in all transactions, updated mark-to-market LTVs provided quarterly, loan-level mortgage insurance details, and details on loan modifications such as the type of modification and the program it was completed through.In early February, Freddie Mac announced its first ACIS transaction of 2016, with a combined maximum limit of approximately $450 million of losses on single-family loans. Through its credit risk transfer initiatives, Freddie Mac has transferred a substantial portion of credit risk for more than $422 billion in UPB on single-family mortgages. The Enterprise’s investor base has grown to more than 190 unique investors (including reinsurers).More information is available on the Credit Risk Transfer page, including a STACR issuance calendar to help investors plan their allocations, on Freddie Mac’s website. The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago March 10, 2016 1,671 Views Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Demand Propels Home Prices Upward 2 days agocenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Freddie Mac STACR Structured Agency Credit Risk 2016-03-10 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Fed Governor’s Donation to Clinton Campaign Sparks Controversy Next: The Fight to Eliminate Blight Continues Home / Daily Dose / Freddie Mac Prices Credit Risk Transaction at Nearly a Half Billion Dollars Data Provider Black Knight to Acquire Top of Mind 2 days ago Freddie Mac Prices Credit Risk Transaction at Nearly a Half Billion Dollars Tagged with: Freddie Mac STACR Structured Agency Credit Risk Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more

DIMONT Promotes Tom Stover to Chief Solutions Officer

first_img Demand Propels Home Prices Upward 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Featured / DIMONT Promotes Tom Stover to Chief Solutions Officer Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Tagged with: DIMONT Tom Stover Share Save Previous: Young People Buying Homes Earlier but for Similar Reasons Next: Establishing Credit History Harder in Low-income Areas DIMONT Promotes Tom Stover to Chief Solutions Officer The Best Markets For Residential Property Investors 2 days ago June 7, 2017 1,483 Views DIMONT Tom Stover 2017-06-07 Staff Writer About Author: Staff Writer Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tom Stover has recently been promoted to Chief Solutions Officer at DIMONT, a provider of specialty insurance and loan administration services to the residential and commercial mortgage industries. Denis Brosnan, President and CEO of DIMONT, said, “Tom’s promotion is in recognition of his continuing contributions to DIMONT, and his proven ability to develop innovative solutions.”Stover has over 25 years of experience in the financial services industry, seven of those at various roles within DIMONT. His superiors cite him as demonstrating deep knowledge in formulating operational and technical solutions to business needs, as well as being instrumental in ensuring that DIMONT’s systems, IT infrastructure, operational processes, and organizational culture effectively meet the needs of clients while simultaneously delivering operational efficiency for the company. In addition to his continuing to deliver operational efficiency for DIMONT, in his new role Stover will also be responsible for developing and expanding new lines of business and services within DIMONT.Stover’s previous roles with DIMONT include Senior Director of information technology and most recently, SVP of solutions development. Prior to joining DIMONT, Tom served as VP of strategy and product development for a New York-based financial services company. Data Provider Black Knight to Acquire Top of Mind 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 Subscribe in Featured, Headlines, News Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Postlast_img read more

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first_imgSubscribe Share Save Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Tagged with: HOUSING mortgage Movers and Shakers As individuals make their way through the industry and companies merge, follow all the important highlights in this weeks update.On Wednesday, AmeriFirst Home Mortgage announced the addition of its new leader, Doug Long, a seasoned mortgage industry veteran, who is serving as Southeast Divisional President.”Doug combines the exact qualities we look for in leaders of our company. He is an individual with the utmost integrity who understands how to successfully combine the nuances of production and marketing with exceptional organizational leadership skills to motivate his team,” said David Gahm, Co-CEO and Co-Founder of AmeriFirst Mortgage Banking Group.”Doug combines the exact qualities we look for in leaders of our company. He is an individual with the utmost integrity who understands how to successfully combine the nuances of production and marketing with exceptional organizational leadership skills to motivate his team,” said David Gahm, Co-CEO and Co-Founder of AmeriFirst Mortgage Banking Group.According to Mark Jones, Co-CEO and Co-Founder of AmeriFirst, the company is excited to bring on Long, as AmeriFirst assembles an incredible team in the Southeast region that has limitless potential for growth. “Doug truly embodies the quality of talent we are bringing to AmeriFirst,” said Jones. “We couldn’t be more excited to have someone like Doug serve as a standard-bearer for our organization.”_________________________________________________________________CoreLogic announced on Monday that it has been selected to provide the Department of Housing and Urban Development (HUD) with a comprehensive set of valuation and workflow solutions to mitigate losses to the Federal Housing Administration (FHA) Mutual Mortgage Insurance Fund (MMIF). Valuation and Disposition Services are designed to improve strategies for disposition in targeted delinquencies, determine disposition strategies and establish property values with a high level of confidence.“We are extremely pleased to be providing HUD with Valuation and Disposition Services. It represents the new standard for excellence, providing more informed decision making and speeding up the workflow process while preserving and protecting the value of the MMIF,” said Walter Allen, Executive of Government Solutions for CoreLogic. “Given our position as a market leader in data, analytics and valuation services, we welcome the opportunity to participate in the effort to optimize returns on distressed assets.”_________________________________________________________________Auction.com announced Tuesday its new online platform to successfully execute mortgage foreclosure sales of Ohio properties in conjunction with Private Selling Officers (PSOs). With the signing of Ohio House Bill 390, foreclosure sales of properties may be conducted online by a PSO. The sales are hosted completely online through Auction.com’s online platform, creating a more optimal, streamlined and transparent experience for buyers and sellers of distressed assets.”Buyers gain confidence to bid when they have detailed insight into the asset and understand the process,” said Javid Jaberi, EVP of Operations for Auction.com. “House Bill 390 enables buyers to view asset information from their own computer or mobile phone, enabling them to bid on assets completely online from the comfort of their homes or businesses. These resources enable faster transaction timelines, lower holding costs and increased numbers of potential bidders, better ensuring that assets are sold at market price.”_______________________________________________________________________________________Fannie Mae introduced the innovative solutions that build on the strong foundation of Day 1 Certainty and further simplify the mortgage process for lenders and servicers. Fannie Mae’s new solutions will help make the housing finance system stronger and safer while meeting customers’ needs by simplifying the process, increasing certainty, and lowering costs.”Fannie Mae was proud to introduce Day 1 Certainty last year and we have worked tirelessly to build on the benefits it provides. We continue to listen and learn from our many customers who have signed up for one or more of our Day 1 Certainty services, and we are using that feedback to make the mortgage process faster, less expensive, and easier for everyone,” said Timothy J. Mayopoulos, Fannie Mae President and CEO. “We are committed to delivering more innovative solutions that help solve our customers’ most important business challenges and creating a stronger and safer 21st century housing finance system.”_______________________________________________________________________________________Black Knight, Inc. announced this week that First Bank Mortgage, a division of First Bank, has signed a three-year renewal for LoanSphere MSP, Black Knight’s industry-leading servicing system. MSP’s single, comprehensive platform will be used by First Bank Mortgage to manage its mortgage servicing processes, including loan boarding, payment processing, escrow administration, default management and more. MSP’s innovative technology will continue to support First Bank Mortgage’s efforts to remain compliant with regulatory requirements.“We appreciate First Bank Mortgage’s confidence in our MSP system to continue managing the company’s servicing portfolio and supporting its compliance initiatives,” said Joe Nackashi, Black Knight President. “We are proud to have served First Bank Mortgage for a quarter of a century, and are pleased to continue supporting the company’s processes with innovative software and dynamic data and analytics capabilities.”  Print This Post Previous: Montgomery Testifies: “Public Service Is An Honor” Next: Counsel’s Corner: Facing Challenges in Financial Services Sign up for DS News Daily About Author: Nicole Casperson in Daily Dose, Featured, Headlines Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 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 Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago HOUSING mortgage Movers and Shakers 2017-10-26 Nicole Casperson Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected] October 26, 2017 1,056 Views The Best Markets For Residential Property Investors 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 agolast_img read more

Millennials vs. Interest Rates

first_img in Daily Dose, Featured, Journal, Market Studies, News Borrowers Interest rates Millennials 2018-04-04 Seth Welborn April 4, 2018 2,738 Views 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. Demand Propels Home Prices Upward 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Previous: The Industry Pulse: Updates on the New York Fed, Freddie Mac, and More … Next: Increasing Delinquencies Among Lower-Income Borrowers Could Forecast Problems The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Borrowers Interest rates Millennials Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days agocenter_img Share Save Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Seth Welborn Even with interest rates going up, millennials are still taking out loans for new homes, according to Ellie Mae. The Ellie Mae Millennial Tracker found that 83 percent of mortgage loans made to millennial buyers were for new home purchases, a two percent increase month over month, but a three percent decrease year over year.Meanwhile, interest rates have been on the rise. In February, interest rates went up from 4.24 percent to 4.39 percent month over month. While this seems to have pushed some buyers away, with non-millennial purchase loans declining from 57 percent of total closed purchase loans in December to 55 percent in February, millennials have been taking out more mortgage loans. According to February’s data, these loans average around $199,352 for male millennial borrowers and $189,084 for female millennial borrowers.According to Ellie Mae, these millennials prefer conventional loans over FHA loans, as 68 percent of loans to millennials in February were conventional loans. Ellie Mae notes that this is the highest percentage of conventional loans since 2016, while FHA loans were at their lowest of 28 percent.The high interest rates haven’t stalled closing times either: millennial homebuyers have been closing in the fastest times in two months. Purchase loans have been closing in an average of 41 days while refinance loans closed in an average of 43 days.“According to the U.S. Census, Millennials are now officially the largest group of homebuyers in the U.S.,” said Joe Tyrrell, EVP of Corporate Strategy for Ellie Mae. “Despite rising interest rates, we’re continuing to see Millennials exercise their purchase power across the United States as they represent 45 percent of total closed purchase loans in February. And with the spring homebuying season now underway, we’ll see if the activity increases for this growing group of homebuyers.” Home / Daily Dose / Millennials vs. Interest Rates Millennials vs. Interest Rates Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily last_img read more

Rate Growth Shifts as Delinquencies Drop

first_img in Daily Dose, Featured, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers are likely to see monthly mortgage payments rise at a slower rate in 2019, according to the latest data from CoreLogic. While the median home sale price rose about 4 percent year over year in January 2019, the principal-and-interest mortgage payment on that median-priced home increased almost 11 percent because mortgage rates rose by half a percentage point over that period. Despite the increase, rates continued to ease after January this year and some mortgage rate and home price forecasts suggest payments will rise at a much slower pace through the rest of the year.CoreLogic’s Home Price Index Forecast predicts a 5.2 percent annual gain in home prices by January next year, and homebuyers are expected to lose less purchasing power this year compared with 2018, as long as forecasts for prices, rates and income hold.The typical mortgage payment has trended higher in recent years, but CoreLogic notes that as of January 2019, the typical payment is still 32.5 percent below the all-time peak of $1,275 in June 2006, when the average mortgage rate back in June 2006 was about 6.7 percent, compared to 4.5 percent in January 2019.The typical mortgage payment is expected to rise from $861 in January 2019 to $889 by January 2020, a 3.3 percent year-over-year gain, a much slower growth rate than the 8.8 percent gain a year earlier. CoreLogic states that in nominal terms, the typical mortgage payment’s year over year increase in January 2020 would be 5.9 percent, or just over half of the 10.5 percent gain a year earlier.While mortgage rates have been slowing, delinquencies have been declining as well. According to the latest Loan Performance Insights Report from CoreLogic, mortgage delinquencies fell by 0.9% year over year in March. Frank Nothaft, CoreLogic Chief Economist cites recent employment increases as one reason for the improved loan performance.”Income growth, home appreciation and sound underwriting combined have pushed delinquency rates to their lowest level in 20 years,” said Nothaft. “The low delinquency rates on home mortgages are a contrast to the rising delinquency rates on consumer credit. While home mortgage delinquency rates are at, or are near, their lowest levels in two decades, delinquency rates for auto and student loans are higher now than they were during the early and mid-2000s.” Servicers Navigate the Post-Pandemic World 2 days ago About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Rate Growth Shifts as Delinquencies Drop 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. Related Articles Tagged with: CoreLogic Delinquencies Mortgage Rate paymentcenter_img Rate Growth Shifts as Delinquencies Drop Previous: Home Point Financial Acquires Wholesale Division of Platinum Mortgage Next: Q1 Trends in Regulatory Actions  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily CoreLogic Delinquencies Mortgage Rate payment 2019-04-23 Seth Welborn The Best Markets For Residential Property Investors 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago April 23, 2019 1,675 Views last_img read more

Responding to the New Reality: Problems With the NFIP

first_imgHome / Daily Dose / Responding to the New Reality: Problems With the NFIP Demand Propels Home Prices Upward 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. Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Fannie Mae: Consumer Confidence Grows in July Next: Merging Technology, Personal Touch in the Mortgage Process Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: flooding Hurricanem nfip Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Responding to the New Reality: Problems With the NFIP August 7, 2019 1,407 Views in Daily Dose, Featured, Government, Loss Mitigation, Market Studies, Newscenter_img Demand Propels Home Prices Upward 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 About Author: Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save As Hurricane Barry’s projected damage from flood and wind losses approaches between $500 million and $900 million, according to CoreLogic, some are saying that building in flood zones has become increasingly dangerous. According to Craig Poulton, CEO of private flood insurer Poulton Associates, continuing to build in flood risk zones is “insane.”“As all of these named storms have proven in one way or another, we simply on a local level and a national level are not responding to the new reality,” said Poulton on Insurance Business. “We need to recognize that we have to stop putting lives and values in the way of storms, and in the way of flooding in particular.”According to Poulton, the National Flood Insurance Program (NFIP) is a failed system that doesn’t address the risk faced by millions of Americans.“The insurance is too inexpensive, and the NFIP and federal government don’t mandate that municipal governments take the right steps” Poulton told Insurance Business. “The problem with that is folks in any given locality believe they will never be flooded, hence they don’t buy flood insurance unless they’re forced to because they have a mortgage.”Lawmakers are taking some steps to update the NFIP. For example, Senator Cindy Hyde-Smith is proposing an update to the Program which aims to address the multiple extensions the NFIP has undergone with a long-term extension plan.In her letter to Senate Banking Committee Chairman Michael Crapo and Ranking Member Sherrod Brown, Hyde-Smith puts forth several options to address affordability issues among low and middle-income policy holders and debt issues within the NFIP. “We’re trying to flip the script on mitigation projects, from being reactionary to being proactive.  This is the first bill that provides a significant amount of real money for pre-disaster mitigation, which would give taxpayers a better return on investment.  It is far more expensive to rebuild after a disaster than it is to do everything you can to protect yourself beforehand,” Hyde-Smith said in a statement. The Best Markets For Residential Property Investors 2 days ago flooding Hurricanem nfip 2019-08-07 Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribelast_img read more

What Weighs on Housing?

first_img Tagged with: mortgage Prices Sales September 17, 2019 1,183 Views Home / Daily Dose / What Weighs on Housing? Related Articles  Print This Post Consumer spending remains the primary driver of the current economic expansion, according to the latest commentary from the Fannie Mae Economic and Strategic Research (ESR) Group. Demand for homes is especially high, but limited supply continues to be a concern. The ESR believes that the Fed will cut interest rates two more times in 2019 but notes risks remain biased to the downside, as trade tensions, a potential no-deal Brexit, and other concerns weigh on the markets.The current low interest rate environment may be supportive of new construction, but according to the ESR Group, a low number of existing homes will lead to lower its existing sales growth forecast in 2019 to negative 0.3%. Total mortgage originations in 2019 are still expected to rise 11.6% year over year, due largely to another upward revision in projected refinance activity, which, according to the recently released Mortgage Lender Sentiment Survey, lenders now report as driving their surging profit margin outlooks.“Domestic economic data continue to paint a picture of generally positive fundamentals amid a backdrop of continued volatility and uncertainty,” said Fannie Mae SVP and Chief Economist Doug Duncan. “Consumer spending remains the engine driving the economy forward, but faltering business investment and worrying downside risks, including the ongoing trade tensions between the U.S. and China, could become a heavier weight on growth. It appears the Fed is prepared to help insure against downside risks by easing further, and we’re maintaining our forecast that the Committee will cut rates two more times in 2019 – this week and again in December.”“The housing story remains primarily one of imbalance between demand and supply,” continued Duncan. “Both our consumer and lender attitudinal surveys hit new highs this month due to near-historically low mortgage rates and generally favorable household balance sheets, but inventory constraints, particularly in the affordable space, continue to hold back housing market sales volume. Refreshingly, in the absence of existing stock, homebuilders appear to be increasingly focused on entry-level homes, as the median square footage of new single-family construction fell 4.3% in the second quarter.” Previous: California Faces Affordability Challenges Next: Low-Priced Rents Drive Growth in Daily Dose, Featured, Market Studies, News Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. The Best Markets For Residential Property Investors 2 days ago What Weighs on Housing?center_img Servicers Navigate the Post-Pandemic World 2 days ago Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily mortgage Prices Sales 2019-09-17 Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Seth Welborn Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

FHFA Strategy Focuses on Post-Conservatorship Years

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Previous: Why Are Americans Putting Off Selling Their Homes? Next: Should CFPB Reorganize ‘Just Weeks Before an Election’? The Federal Housing Finance Agency (FHFA) has released an updated strategic plan that envisioned a path for ending the conservatorships of Fannie Mae and Freddie Mac that have been in place since September 2008.According to a statement issued by the agency, “FHFA Strategic Plan: Fiscal Years 2021-2024” formalizes the direction of the FHFA and its regulated entities with an updated mission that includes three new strategic goals:Ensuring safe and sound regulated entities through world-class supervision;Fostering competitive, liquid, efficient, and resilient (CLEAR) national housing finance markets; andPositioning the agency as a model of operational excellence by strengthening its workforce and infrastructure.“FHFA must take steps to prepare for its post-conservatorship role as a world-class regulator,” said FHFA Director Mark Calabria. “This new Strategic Plan outlines the critical milestones that will guide FHFA’s efforts to ensure that its supervision and regulation of the Enterprises is strong and well-executed once outside the framework of conservatorship.”Although the plan did not offer a specific timeline for achieving a post-conservatorship environment, Calabria added that the FHFA has already begun to take actions that align with these goals, including the creation of the Office of Equal Opportunity and Fairness and the Division of Research and Statistics, which both occurred last January.The strategic plan acknowledged there could be obstacles to prevent it from being implemented, including the possibility of the government-sponsored enterprises becoming unable to provide liquidity to the mortgage market during a period of economic fraying.“Financial stress that adversely affects the safety and soundness of the regulated entities can come at any time,” the strategic plan warned. “A severe economic downturn could trigger a decline in nationwide or regional house prices, causing an increase in mortgage defaults. Disruptions in funding markets could limit access to and increase the cost of short-term borrowing. Defaults by one or more significant counterparties could expose the regulated entities to loss.”The strategic plan also predicted difficulties from “any new housing finance legislation enacted into law [that] could potentially affect FHFA’s ability to implement this StrategicPlan.” The plan recommended that Congress “give FHFA the same flexibility as the federal banking regulators by amending or removing the statutory capital definitions” while allowing it to continue partnering with other federal agencies “to ensure a fair playing field and mitigate opportunities for regulatory arbitrage.”“The finalized strategic plan will help cement the agency as a world-class financial regulator by ensuring that we fulfill our statutory mission and continue working to end the conservatorships of the enterprises responsibly,” Calabria said. October 27, 2020 1,586 Views Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago Phil Hall is a former United Nations-based reporter for Fairchild Broadcast News, the author of nine books, the host of the award-winning SoundCloud podcast “The Online Movie Show,” co-host of the award-winning WAPJ-FM talk show “Nutmeg Chatter” and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill’s Congress Blog and Profit Confidential. His real estate finance writing has been published in the ABA Banking Journal, Secondary Marketing Executive, Servicing Management, MortgageOrb, Progress in Lending, National Mortgage Professional, Mortgage Professional America, Canadian Mortgage Professional, Mortgage Professional News, Mortgage Broker News and HousingWire. Sign up for DS News Daily  Print This Post Related Articles in Daily Dose, Featured, Government, Newscenter_img FHFA Strategy Focuses on Post-Conservatorship Years Fannie and Freddie FHFA Strategic Fiscal Plan 2020-10-27 Christina Hughes Babb The Best Markets For Residential Property Investors 2 days ago 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 Tagged with: Fannie and Freddie FHFA Strategic Fiscal Plan About Author: Phil Hall Home / Daily Dose / FHFA Strategy Focuses on Post-Conservatorship Years Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

The Benefits of Homeownership Often Elude Black Americans

first_img About Author: Christina Hughes Babb The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago November 24, 2020 1,163 Views Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Owning a home is a tool for building wealth and stability, but a report from researchers at the Urban Institute indicates that is less applicable to people of color.Not only do Black Americans face more barriers to homeownership, but they also accrue less wealth than their White counterparts when they become homeowners. And the pandemic could intensify inequality, the study showed.”Wealth is not accruing equitably to Black homeowners due to a long history of structural barriers and added costs,” said Alanna McCargo, VP of Housing Finance Policy at the Institute, who co-authored the report with Research Associate Junh Hyun Choi. “Households with little to no wealth are far more vulnerable during economic cycles, and the COVID-19 pandemic threatens to widen racial homeownership and wealth gaps creating deep housing insecurity for households of color.”Growing Wealth DisparityWealth disparities between Black, Hispanic, and white households are greater than income disparities, the researchers said, pointing to data from 2019.Last year, Black median household income was $43,862; Hispanic median income was $55,658; and White median income was $71,644. In contrast, in 2019, the median Black household held one-eighth the wealth of the median White household, the study found.Furthermore, the researchers found evidence that homeownership plays a bigger role in creating wealth for Black families than it does for White families.”Housing equity makes up nearly 60% of the total net worth for Black homeowners, compared with 43% of the total net worth for white homeowners. Although homeownership should not be the only focus of public policy and wealth building for Black households, it is a a solid foundation for building wealth, even with total wealth accumulation being less when compared with accumulation for White homeowner,” the authors wrote.Lagging Homebuying The study also showed that the homeownership rate over time has significantly slowed for Black Americans, falling more than 5 percentage points after the Great Recession. In 2018, the Black-White homeownership gap reached 30.5 percentage points, its highest level in 50 years and a 4.1 percentage-point increase since 1960.”Black homeownership declined the most following the 2008 housing market crisis and only started to recover in 2019, just before the pandemic hit,” the researchers say.They go on to show how historic and existing policies have interfered with wealth-building (related to real estate ownership) for Black families.”Black homebuyers also face more expensive mortgage financing because loan underwriters believe black homebuyers pose a higher risk of loan default … During the housing boom in the early 2000s, Black borrowers were significantly more likely to receive subprime loans and adverse pricing within the subprime space than comparable white households …” the research showed. “Subprime loans were more likely to experience foreclosure and increase foreclosure probability of nearby homes, resulting in substantial loss of wealth and deterioration of credit among Black homeowners.”The study also takes a look at residential segregation, the Fair Housing Act, tight credit, lack of affordable housing, the “Black Tax,” as well as pandemic-related obstacles between Black families and homeownership (and the financial security meant to accompany it).SolutionsThe Urban Institute suggested “policy interventions” including “implementing a restorative housing wealth program that reduces debt and creates value for new homeowners … building fair housing and antiracist testing into home valuation and appraisals and the technologies underlying these systems … and expanding homeowner relief and stimulus programs to reach more households of color and avoid further black wealth erosion.”Read the full study here. 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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. Subscribelast_img read more

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