Freddie Mac: Housing Market Inching Closer to Stability

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Freddie Mac Jobs Multi-Indicator Market Index Purchase Loans Freddie Mac: Housing Market Inching Closer to Stability Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Freddie Mac Jobs Multi-Indicator Market Index Purchase Loans 2014-12-01 Tory Barringer in Daily Dose, Featured, Market Studies, News December 1, 2014 917 Views Previous: DS News Webcast: Monday 12/1/2014 Next: Refi Volume Rising While HARP Numbers Keep Falling Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days agocenter_img  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Following a slower than expected summer, the U.S. housing market made up some ground in September as most major indicators inched closer to stability.Freddie Mac released its latest Multi-Indicator Market Index (MiMi), revealing a 0.5 percent uptick in September to a reading of 74.4 after months of slight declines. The most recent improvement puts the index a few points short of the lower threshold for a market considered to be in “stable” territory.According to Freddie Mac, three of the four major indicators tracked in the index saw improvements in September, led by a 1.2 percent gain in the gauge of labor health to 94. The components measuring payment-to-income ratios and the proportion of mortgage payments made on time also edged up, rising 0.8 percent to 72.7 and 0.5 percent to 66.6, respectively.Meanwhile, the already weak picture of home purchase applications deteriorated further, falling 0.8 percent to 64.1. As refinances have fallen off from their surge of the last few years, purchase applications have failed to close the gap, resulting in a more anemic mortgage market compared to the housing recovery’s early years.As of September’s index reading, 14 states and the District of Columbia were in a stable range, with North Dakota (96.5), Washington, D.C. (94.3), Wyoming (91.1), Montana (91.0), and Hawaii (89.3) leading the rest. That compares to 13 states in August’s report.”Following a similar trend from last month more states and metros continued to show improvement from the very slow summer months,” said Len Kiefer, deputy chief economist at Freddie Mac.As with the last few reports, only six of the nation’s top 50 metro areas were in a stable range: San Antonio (91.3), Austin (87.6), Salt Lake City (84.4), Houston (84), Los Angeles (83.5), and New Orleans (82).Meanwhile, a handful of struggling states—including Nevada, which ranks lowest in stability with a MiMi value of 54.6—saw significant improvement over the month, with growth topping 1 percent and climbing as high as 2 percent in some places.Of note in the September release: California finally returned to its historical stable range of housing activity for the first time in six years. The long-struggling state still has its challenges, however.”[W]hile the state has made a strong comeback, we already see one of its four indicators elevated and showing that the typical family continues to have to stretch to buy a median priced house, especially in the Los Angeles metro area,” Kiefer said. “That said, far fewer homeowners are delinquent on their homes, the employment situation continues to improve and even purchase applications are beginning to turn around.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Home / Daily Dose / Freddie Mac: Housing Market Inching Closer to Stability Share Save The Best Markets For Residential Property Investors 2 days ago About Author: Tory Barringer Data Provider Black Knight to Acquire Top of Mind 2 days ago Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington’s student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News’ sister publication, MReport, which focuses on mortgage banking news. Subscribelast_img read more

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Deutsche Bank Posts Q4 Loss After Hard Year

first_img Related Articles Demand Propels Home Prices Upward 2 days ago February 2, 2017 1,206 Views Home / Daily Dose / Deutsche Bank Posts Q4 Loss After Hard Year The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: Setting it Right: Goldman Sachs Works Toward Agreement Next: Fitch downgrades distressed bonds Phil Banker began his career in journalism after graduating from the University of North Texas. He has covered a number of communities across Texas and southern Oklahoma, writing news and sports for publications including the Ardmoreite, Ennis Daily News and the Plano Star-Courier. He is currently a contributor to DS News and The MReport. 2017-02-02 Phil Banker Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Deutsche Bank Posts Q4 Loss After Hard Year Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Headlines, News Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Phil Banker Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Deutsche Bank’s woes continue to compound after posting a $2.05 billion loss for Q4, ending an already trying year for the bank on a low note.The bank’s full-year net loss was roughly $1.51 billion, down from a net loss of approximately $7.3 billion in 2015, with CEO John Cryan saying that the bank “finished 2016 with pleasingly strong capital and liquidity ratios.”However, Deutsche Bank shares dropped 3 percent at the beginning of trading Thursday, following the announcement of the Q4 loss.Much of the loss, according to the bank, was attributed to the sale of its Abbey life insurance business, restructuring and litigation costs.Deutsche Bank agreed to pay a $7.2 billion settlement in January following an investigation into its residential mortgage-backed securities and securitization activities between 2005 and 2007. The bank agreed to pay a civil monetary penalty of $3.1 billion and pay $4.1 billion toward consumer relief in the form of loan modifications and other assistance to homeowners and borrowers over a five-year period.The U.S. Justice Department stated that this “agreement represents the single largest RMBS resolution for the conduct of a single entity.””This resolution holds Deutsche Bank accountable for its illegal conduct and irresponsible lending practices, which caused serious and lasting damage to investors and the American public,” said now former Attorney General Loretta E. Lynch in the release.Most recently U.S. District Judge Jesse Furman in Manhattan refused to throw out a proposed class-action lawsuit mounted against Deutsche Bank seeking to recover “significant money damages” connected to their alleged “failure to discharge its essential duties” as trustee of 62 trusts created between 2004 and 2008, which issued notes backed by roughly $90.3 billion of home loans. Plaintiffs against Deutsche Bank include BlackRock Inc. and Pacific Investment Management Co.The judge did however grant the bank’s request to dismiss conflict-of-interest claims.Deutsche Bank Co-CEO John Cryan sent a statement to employees on January 17 thanking them for their resilience during the settlement process.“Despite this financial impact, we are pleased to have resolved this matter,” Cryan said.  “We had to invest a vast amount of time and energy in these negotiations, and the resolution of this matter creates a lot more certainty.” Share Save Subscribelast_img read more

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Housing and Economic Activity: National Update

first_imgHome / Daily Dose / Housing and Economic Activity: National Update Servicers Navigate the Post-Pandemic World 2 days ago Previous: Metro-West Appoints VP of Appraiser Advancement Next: HUD Secretary to Work on Big Banks’ Lending Practices in Daily Dose, Featured, Headlines Housing and Economic Activity: National Update The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Share Save October 23, 2017 1,130 Views The Best Markets For Residential Property Investors 2 days ago 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] 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 Subscribe Demand Propels Home Prices Upward 2 days ago  On Monday, the Federal Reserve Bank of Chicago released its monthly index for October 2017—the Chicago Fed National Activity Index (CFNAI)— reporting the overall economic activity across the U.S.The index, which was constructed using data available as of October 19, 2017, analyzes economic activity based on summarizing variation in 85 data series classified into four main categories.So how does the Chicago Fed organize this data? The CFNAI is designed so that periods of economic expansion have values of above negative 0.70. Meanwhile, periods of economic contraction have values below negative 0.70.According to the index, the overall economic activity reported an increase in growth with a positive 0.17 in September, compared to a negative 0.37 in August.However, despite this slight increase in September, the index reports that month-to-month movements are volatile. Therefore, the index also evaluates a three-month moving average to provide a more consistent picture of national economic growth—the most recent three-month moving average was unchanged at negative 0.16 in September.The contribution of the housing category to the CFNAI is combined with personal consumption—representing an increase to negative 0.07 in September from negative 0.11 in August.However, housing starts decreased to about 1.13 million annualized units in September from about 1.2 million in August. In addition, the index notes that housing permits decreased to about 1.23 million in annualized units in September, which is a decrease from 1.27 million in the previous month. Conversely, consumption indicators improved, which increased the category’s overall contribution to the economy.In addition, the report’s job-market gauge was a positive contributor to the economy, increasing to positive 0.06 from positive 0.01 in the previous month.To view the full report and other indicators impacting the U.S. economy, click here. Related Articles About Author: Nicole Casperson 2017-10-23 Nicole Casperson The Week Ahead: Nearing the Forbearance Exit 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  Print This Post Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

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JPMorgan Raising Wages After Passage of Tax Reform

first_imgSign up for DS News Daily JPMorgan JPMorgan Chase JPMorgan Chase & Co tax cuts and jobs act Tax Reform 2018-01-23 David Wharton  Print This Post JPMorgan Raising Wages After Passage of Tax Reform The Best Markets For Residential Property Investors 2 days ago January 23, 2018 1,547 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe Share Save Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / JPMorgan Raising Wages After Passage of Tax Reform The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Hurricane Aftermath Continues to Affect Mortgage Delinquency Next: The Long-Term Impact of Hazard Mitigation While the long-term impacts of the tax reform bill passed by Congress and signed into law by President Trump remain to be seen, at least one major corporation is investing some of their tax windfall into continuing growth. According to U.S. News & World Report, JPMorgan is raising hourly employee wages, hiring thousands of new employees, and opening new branches around the country.The Tax Cuts and Jobs Act of was signed into law by President Trump on December 22, 2017, implementing sweeping changes to many parts of the tax code—and dropping the corporate tax rate from 35 percent to 21 percent. The theory is that this will inspire corporations to invest more in the United States, to hire more people, and to pay those people higher wages. New York-based bank JPMorgan seems to be doing precisely that.JPMorgan has announced that it will be increasing hourly wages to a range of $15 to $18 per hour, up from the previous averages of between $12 and $16.50 per hour. The bank is also planning to open 400 new branches, hire 4,000 new U.S. employees, and reduce medical plan deductibles for some employees.According to U.S. News, JPM also plans to increase the number “affordable” home loans it originates by 25 percent to $50 billion and increase philanthropic donations by 40 percent to $1.75 billion.Chairman and CEO Jamie Dimon told U.S. News & World Report, “Having a healthy, strong company allows us to make these long-term, sustainable investments. We are excited about further investing in our outstanding workforce and expanding into new U.S. markets.”The new branches will be rolled out over the next five years and in up to 20 new markets, according to U.S. News. JPMorgan currently operates in 23 different states, totaling more than 5,000 local branches.Although JPMorgan reported a 37 percent drop in profits during Q4 2017, which it attributes to having to write down the value of its tax-deferred assets after changes to the tax code, rising interest rates will allow the bank to charge higher rates on loans, which should increase net interest income.JPMorgan Chase’s Q3 2017 financial reports, released in October 2017, showed the company reporting a revenue of $25.3 billion, with $6.7 billion in net income for the quarter. 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 Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: David Wharton Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Headlines, Journal, News Tagged with: JPMorgan JPMorgan Chase JPMorgan Chase & Co tax cuts and jobs act Tax Reformlast_img read more

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How Much Home Can a Teacher Afford?

first_img 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 affordable Employment Homes HOUSING loans Median Price mortgage Teachers 2018-05-09 Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / How Much Home Can a Teacher Afford? in Daily Dose, Featured, Market Studies, News The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Tagged with: affordable Employment Homes HOUSING loans Median Price mortgage Teachers Governmental Measures Target Expanded Access to Affordable Housing 2 days ago May 9, 2018 6,692 Views Demand Propels Home Prices Upward 2 days agocenter_img Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago How Much Home Can a Teacher Afford? 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. About Author: Radhika Ojha Previous: Ex-CFPB Director Cordray Wins Ohio Democratic Governor Primary Next: “It Just Appealed to Me”: Robert Klein’s Property Preservation Legacy Share Save Teachers across the country might be winning the right to earn higher wages, yet housing affordability remains a huge concern for the nation’s educators according to a study by Redfin. According to the study, In 2018, 11.5 percent of all homes for sale across 28 metros were affordable on an average teacher’s salary of $62,860. This is a decrease from 19.7 percent homes being affordable for teachers in 2016.For the study, Redfin used data from the Bureau of Labor Statistics to calculate the average salary by metropolitan area for elementary, middle, and secondary school teachers. Based on these average salaries, the study then looked at all multiple listing service (MLS) listings active on the market in each metro as of May 1, 2018, along with the estimated property tax rates. These data points along with current homeowners association (HOA) dues, and the property tax rate for each listing were used to calculate the estimated monthly mortgage cost and determined the percentage of homes where the monthly mortgage payment was equal to or less than the max monthly mortgage payment possible on the average teacher’s salary.So which cities are the most affordable for teachers? The study found that 39 percent of homes for sale were affordable for teachers in Pittsburgh, Pennsylvania, making it the top ranking city for teachers in terms of home affordability. This was despite the overall affordability of homes going down 12.4 percent since 2012. The median sale price of homes in this city were $164,000 and teachers could afford homes priced at around $210,000 in Pittsburgh.Detroit, Michigan earned the second spot on this list with a median sale price for homes at $127,000 and teachers being able to afford homes valued at an average of $237,000 in the Motor City. Average teacher salaries in Detroit were $68,500 and 35.4 percent of all homes were affordable for educators in this city. Coming in third was Cleveland, Ohio where 33.4 percent homes were affordable for teachers who earned an average salary of $62,000. The median sale price for homes in the city was $127,000, while the maximum home price that teachers could afford here was pegged at $210,000.However, home affordability in both Detroit and Cleveland has seen a steep decline since 2012. While affordability in Detroit decreased 24.2 percent, it fell 20.8 percent in Cleveland.With 29 percent homes that were affordable to local teachers earning a salary of $53,800 and a median home price of $170,000, St. Louis in Montana earned the fourth spot on the list. Philadelphia, Pennsylvania rounded off the top five with 25 percent homes affordable to local teachers earning a salary of around $70,000.Joining these five cities were Baltimore, Maryland; Kansas City, Montana; San Antonio, Texas; Tampa, Florida; and Atlanta Georgia.Denver, Colorado was at the bottom of this list with only 0.3 percent of homes affordable for local teachers earning a salary of $54,500, the study found. Joining Denver were Oakland, California; and Phoenix, Arizona.In fact, the study revealed that the recently approved 20 percent raises in teachers’ salaries in Phoenix, would increase their maximum home-buying budget from $130,000 to $170,000, and would more than double the share of Phoenix homes affordable to them from 0.5 percent to 1.1 percent.  Print This Post Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

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State Supreme Court Issues Foreclosure Ruling

first_imgSign up for DS News Daily State Supreme Court Issues Foreclosure Ruling  Print This Post The Best Markets For Residential Property Investors 2 days ago After the courts have dismissed a foreclosure action involving borrower default, is that simply the end of the road for servicers? A recent decision by the Wisconsin Supreme Court provides clarity in this arena for servicers and financial services law firms operating within the state and could hold broader implications beyond it.In the case of Federal National Mortgage Assoc. v. Thompson, the Wisconsin Supreme Court recently ruled unanimously (7-0) that claim preclusion does not prevent the lender from bringing further foreclosure actions if the borrower remains in default after the initial dismissal.Andrew Houha, Senior Attorney at the Legal League 100 member firm of Johnson, Blumberg & Associates, LLC, told DS News, “This is a great decision for the mortgage servicing industry in Wisconsin. The supreme court got it right on the head—how can you litigate a future default?”A bit of background: Federal National Mortgage Association had brought a foreclosure action against borrower Cory Thompson and his spouse after they defaulted on their mortgage. Per the State Bar of Wisconsin, an acceleration clause in the original mortgage contract allowed the lender to “accelerate the full amount of unpaid principal plus interest if a number of conditions were met.” Those conditions included a default occurring, after which the lender was required to send written notice of intent to accelerate if Thompson didn’t catch up. The clause also noted that “the opportunity to cure period could not be less than 30 days from the date the note was mailed or delivered.”BAC Home Loans Servicing, the holder of the note, sued Thompson after he defaulted. However, a circuit court ruled in 2012 that BAC did not prove that it had sent Thompson the proper notice of intent to accelerate, and the case was then dismissed.In 2014, Bank of America (BOA) had taken over as the loan servicer for Thompson’s mortgage. They sent Thompson a new notice of intent to accelerate, due to Thompson having remained in default since 2009. Bank of America initiated a foreclosure action. The circuit court, however, then ruled that BOA “could not re-litigate the same allegations for the time period between 2009 and 2012, since that was the time period covered by the first lawsuit.” However, the court ruled that BOA could pursue foreclosure actions against Thompson for continuing default occurring after the dismissal.The case finally made its way up to the Wisconsin Supreme Court, which recently affirmed that opinion. Justice Shirley Abrahamson wrote, “Claim preclusion does not bar the lender from bringing a subsequent foreclosure action based upon the borrower’s continuing default on the same note.” She added, “A different set of operative facts predicated upon separate and distinct defaults on the note is alleged in each lawsuit.””The original case was litigated extensively, with the judge ruling that there was no evidence of proper acceleration and that the prior plaintiff did not have possession of the note,” Houha said. “The Supreme Court recognized with a proper acceleration and by proving possession, any future default is a new cause of action.”You can read the Wisconsin Supreme Court’s full opinion by clicking here. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share 1Save claim preclusion Federal National Mortgage Assoc. v. Thompson Foreclosure 2018-06-08 David Wharton Previous: LenderClose Expands Sales Team with New Executive Next: Equifax Introduces New Indicator to Reduce Friction in Lending About Author: David Wharton Data Provider Black Knight to Acquire Top of Mind 2 days ago 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 Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / State Supreme Court Issues Foreclosure Rulingcenter_img 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 The Best Markets For Residential Property Investors 2 days ago June 8, 2018 3,668 Views Tagged with: claim preclusion Federal National Mortgage Assoc. v. Thompson Foreclosure Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Foreclosure, Journal, Newslast_img read more

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How the Fed’s MBS Holdings Stimulate Housing

first_img Share 1Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Federal Reserve Homes HOUSING Loan MBS New York Fed Premium Prepayment in Daily Dose, Featured, News, Secondary Market Home / Daily Dose / How the Fed’s MBS Holdings Stimulate Housing How the Fed’s MBS Holdings Stimulate Housing  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Krista Franks Brock August 13, 2018 3,066 Views Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The economic impact of the Federal Reserve’s mortgage-backed securities (MBS) holdings are comparable to its Treasury securities holdings, except for one main difference. MBS, unlike Treasury securities, are subject to prepayment risk. For this reason, the Fed “can lower the amount of such risk that the market must hold, which could lower the cost of housing, favoring that sector of the economy,” according to a post on the Federal Reserve Bank of New York’s blog. Titled, “How Do the Fed’s MBS Holdings Affect the Economy,” the post said that in general, the Federal Reserve affects the economy by driving certain behaviors through interest rates. “Higher interest rates motivate more saving and less borrowing and consumption today, while lower interest rates have the opposite effect,” explained Antoine Martin, an SVP of research and statistics, and Sam Schulhover-Wohl, a Senior Economist and Research Advisor at the New York Fed. The authors pointed out that the housing sector is particularly susceptible to changes in interest rates, more so than much of the larger economy. “A cut in interest rates tends to shift the mix of aggregate spending toward housing, while a rise in rates tends to shift the mix of spending away from housing,” they wrote. When it comes to MBS purchases, the impact overall is often to lower longer-term interest rates, especially when short-term rates are already low. “This impact is generally like the impact of holding longer-term Treasury securities,” according to the blog post. However, the Fed did use MBS purchases specifically to support and stimulate the housing market after the housing crisis in 2008. Some may view the Fed’s actions in the market negatively, perhaps as “distortions away from an efficient, ‘laissez-faire’ allocation,” but Martin and Schulhofer-Wohl defended the Fed’s post-crisis actions saying, “But cross-sectional effects are not always bad; if the market is already distorted by liquidity constraints, information asymmetries, and other frictions, then the cross-sectional effects of policy could help remedy those distortions and improve overall outcomes.” MBS purchases offer a more direct stimulus to the housing market than the broader economy because of prepayment risk, the blog post explained. While investors, of course, “demand a risk premium” to compensate for prepayment risks, the Fed researchers explained that “when the Fed holds MBS, it removes some prepayment risk from the market, reducing the prepayment risk premium.” In other words, mortgage rates, and thus the cost of owning a home, will go down. The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. Previous: PHH Servicer Ratings Rise Next: Courts Address Condo Laws, But Questions Remain Subscribe Federal Reserve Homes HOUSING Loan MBS New York Fed Premium Prepayment 2018-08-13 Krista Franks Brock Sign up for DS News Daily Related Articleslast_img read more

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Counsel’s Corner – The Importance of Fiscal Discipline

first_img About Author: David Wharton Sign up for DS News Daily Counsel’s Corner – The Importance of Fiscal Discipline Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Counsel’s Corner – The Importance of Fiscal Discipline Editor’s Note: This feature originally appeared in the December issue of DS News. Click here to view the full issue.Daniel Chilton is an experienced financial services attorney and has served on numerous financial services panels because of his extensive expertise in the areas of bankruptcy law, mortgage servicing, financial regulatory compliance, and debt collections. Before joining Robertson, Anschutz & Schneid, he was with Citibank from 2002–2016 and held positions in Operations, Finance, and Legal. He has over seven years’ experience in counseling banks through six consumer finance regulatory exams from the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. He earned his degrees in finance and in economics at Northern Kentucky University and his Juris Doctor at the Salmon P. Chase College of Law. Chilton is a licensed attorney in Kentucky, Ohio, and Texas, and currently lives in Flower Mound, Texas, with his wife and four children.What advice do you have for firms trying to manage costs in today’s foreclosure climate?Fiscal discipline must be a core firm value. This may play out in a disciplined staffing model, as staffing expenses likely account for over 70 percent of a firm’s budget. Do the partners in the firm hire someone new because their business team suggests it, or are decisions made with discipline and quantified at every level? If there is a need for people yet a staffing model does not arrive at the same conclusion, is Operations disciplined with digging into production reporting at an individual level to ensure maximum output? Additionally, every purchase a partner makes, their firm is watching as an example of how frugal to be with the firm’s money.Where should firms focus their efforts in order to remain competitive?See servicing through your clients’ eyes. One client may focus on SLAs, another on onsite legal audit scores, another on the versatility of a firm’s services. Know your clients and give them what they want every single time.How do you think the market landscape is likely to change in 2019?A recent Zillow Home Price Expectations Survey suggests the market will change to a buyer’s market in 2019, but I am not sure I agree. We have maintained a strong economy, low unemployment, and a high savings rate—interest rates are also a significant variable. They are expected to climb to an average of 5.1 percent in 2019 from their average today of about 4.6 percent. Taken together, I do not foresee an environment that spikes foreclosure volume where an inordinate amount of homeowners no longer could afford their homes. This assumption is made as all other variables remain constant—this could all change after the election.Additionally, I have to mention the financial regulatory landscape. With the changes to the Dodd-Frank Act implemented in May this year, we should see a more competitive banking environment from those financial institutions with assets below $10 billion, and less regulation and compliance costs for banks with $50 billion to $250 billion in assets, which classify more as regional banks versus the large international banks.The BCFP changed its mission statement in 2018 as well. This subtle change saw the removal of the ambiguous word “fairly” from the bureau’s qualifications as to how to enforce consumer finance rules. It more fully clarified how it will accomplish enforcement by “regularly identifying and addressing outdated, unnecessary, or unduly burdensome regulations.” Some would say this change has fairly tipped the scale to a more balanced regulatory partner.What are the biggest challenges for firms working to help clients ensure compliance in an ever-shifting regulatory environment?Clients rely heavily on their partner firms to keep them updated on changes in laws, regulations, and local rules. Firms should partner with servicers on various cleanup and special projects impacting foreclosure, REO, collections, loss mitigation, or bankruptcy—the goal should be to be plugged in at every level of mortgage servicing. Both servicers and law firms are working toward the goal of keeping people in their homes, and it is through that lens that firms should counsel their clients, whether on a microcase level or a macropolicy change initiative. Once your firm has that culture baked into its guidance, it makes the legal analysis that much better.What are some pending cases that could have a major impact or set precedents for the industry going forward?The case I think all servicers and law firms should have their eye on is Obduskey v. Mc-Carthy & Holthus LLP, which is before the U.S. Supreme Court. The issue at hand is whether the nonjudicial foreclosure process and the act of conducting a trustee’s sale qualify as “debt collections” under the Fair Debt Collection Practices Act. While states properly have governing foreclosure laws to protect consumers, this case will help properly scope the federal definition of “debt collector.” There are numerous amicus briefs on the matter, one being from our friends at the Legal League 100.Your firm is a member of the Legal League 100. Why do you think the League is important and beneficial?Legal League 100 (LL100) is an exclusive association of financial services law firms that represent each state. In my experience over the past several years, the LL100 conferences have been the most well attended, and for good reason; it is where servicers and law firms can speak candidly on the state of the industry, challenges in mortgage servicing, trends in laws and regulations, and best practices. The quarterly newsletter covers relevant topics in our industry; something you could hand a litigation manager in a servicer’s shop and ask, “Are we protected given these changes?” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: A Closer Look at Foreclosure Prevention Next: OCC Chief Named Acting FHFA Director Demand Propels Home Prices Upward 2 days ago Daniel Chilton Fiscal Discipline RAS Crane LLC 2018-12-20 David Wharton The Best Markets For Residential Property Investors 2 days ago Share Savecenter_img Tagged with: Daniel Chilton Fiscal Discipline RAS Crane LLC Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, News, Print Features Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago December 20, 2018 1,889 Views  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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] Subscribelast_img read more

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Building Better Disaster Relief for Homeowners

first_img Demand Propels Home Prices Upward 2 days ago Share Save  Print This Post in Daily Dose, Featured, Government, Loss Mitigation, News Committee on Financial Services Homeowners hurricanes Natural Disasters Puerto Rico 2019-03-26 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. Subscribe 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 About Author: Seth Welborn Servicers Navigate the Post-Pandemic World 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 agocenter_img Home / Daily Dose / Building Better Disaster Relief for Homeowners Building Better Disaster Relief for Homeowners Related Articles Servicers Navigate the Post-Pandemic World 2 days ago March 26, 2019 1,260 Views Previous: Working Toward Crapo’s “More Sustainable” Housing Finance System Next: If It’s a Buyer’s Market, Do the Homebuyers Know? On Tuesday, the Committee on Financial Services held a hearing entitled “The Administration of Disaster Recovery Funds in the Wake of Hurricanes Harvey, Irma, and Maria”, in order to discuss the impact of the HUD Community Development Block Grant (CDBG), and the allocation of funds following recent hurricanes to hit the East Coast, Gulf Coast, and Puerto Rico.Witnesses at the hearing included Fernando Gil Enseñat, Secretary of Housing, Puerto Rico, Jeremy Kirkland, Counsel to the Inspector General, U.S. Department of Housing and Urban Development, Daphne Lemelle, Executive Director, Harris County Community Services Department, and Marion Mollegen-McFadden, Senior Vice President, Enterprise Community Partners.The committee and witnesses discussed not only the handling of funds following natural disasters, but the increasing threat posed by the rising frequency of natural disasters such as hurricanes and wildfires.“The data suggests that in the coming years, disaster recovery needs will likely grow substantially,” the committee’s memorandum stated. “In 2017, natural disasters combined to cause over $300 billion in direct  damages, a new U.S. annual record. All but four U.S. counties experienced substantial damage from some type of natural hazard between 1999 and 2013.”In his statement, Secretary Gil Enseñat noted how Puerto Rico has utilized the CDBG funds, discussing the new Homebuyer Assistance Program in Puerto Rico.“We’re creating a Homebuyer Assistance Program by investing $350,000,000 to help citizens purchase homes through a variety of support mechanisms, thereby increasing the level of homeownership in impacted communities and contributing to long-term sustainability and viability of communities across the island,” Enseñat stated.Daphne Lemelle laid out a similar plan for the Houston area, which has experienced increased hurricane damage in the past few years. Lemelle notes that Harris county has been impacted by six Presidentially Declared Disasters in the last ten years, and how some aspects of state and federal rebuilding plans such as CBDG can become conflicting.“For example, Harris County is currently opposing a state implemented rule that requires rebuilding of homes based on household size even if it means a reduction in home value,” Lemelle states. “Harris County believes this rule to be detrimental to the local homeowners and housing stock, as well as may have a discriminatory impact on certain households.”Each witness put forth ideas to improve CDBG flexibility and outcomes, with an emphasis on making a more equality-focused system for homeowners during the rebuilding process.Watch the complete hearing here. Find the written testimony from each witness here. The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Committee on Financial Services Homeowners hurricanes Natural Disasters Puerto Ricolast_img read more

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U.S. Real Estate is a Hot Commodity for Foreign Buyers

first_imgHome / Daily Dose / U.S. Real Estate is a Hot Commodity for Foreign Buyers in Daily Dose, Featured, News Real Estate Investment REIT 2019-06-11 Mike Albanese The Best Markets For Residential Property Investors 2 days ago Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. The 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 Servicers Navigate the Post-Pandemic World 2 days ago Previous: Re-examining Data Privacy Under the FCRA Next: Ginnie Mae Updates Its Outline for the Future Tagged with: Real Estate Investment REIT Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Mike Albanese Demand Propels Home Prices Upward 2 days agocenter_img U.S. Real Estate is a Hot Commodity for Foreign Buyers Share Save Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles 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 June 11, 2019 3,399 Views During a recent interview with CNBC, the President of Lennar International, Chris Marlin said foreign buyers are looking to the U.S. residential real estate market for long-term, stable investments.Marlin said the consumer behavior, especially from buyers in Japan, is moving away from yield, and focused more on stability and self-use.He added that while there has been a decline in interest from Chinese buyers in California, Chinese buyers are looking more into properties in Florida, Texas and along the East Coast. Marlin added that Chinese interest in China is still evident, but they are moving away from high-priced homes.According to a recent Gallup poll, 35% of Americans believe real estate to be the superior long-term financial investment, compared to 27% who say stocks are the better investment. For real estate investors, tech such apps which allow for remote bidding could provide a quicker way to take advantage of the rising positive sentiment toward real estate as an investment.Additionally, many current homeowners (around 1 in 10) say they would prefer going back to renting over owning, according to Gallup’s research, which could be a boon for single-family rental investment.The Wall Street Journal also reported that real estate investment trusts (REIT) are growing rapidly. Real-estate investment trusts that buy residential home loans increased their mortgage-bond portfolios by almost 28% to $308 billion over the 12 months through March, the largest stockpile in six years, and according to Eisen, are poised to continue to grow as the government’s housing market role shrinks.Though these firms are small compared to the mortgage market as a whole, the report states that some analysts express concern that they are putting more of the mortgage market into the hands of leveraged firms with minimal oversight, noting that some risky REITs went bust during the last financial crisis. However, some suggest that REITs make up an optimal backbone for the mortgage market, leveraging less risk than before the financial crisis and able to quickly raise and deploy money when they see an opportunity.“If you want to have more private capital in the market, you need to manage the risks,” Calvin Schnure, SVP for Research and Economic Analysis at Nareit, told the Journal. “Mortgage REITs hedge all of those risks.”Why foreign buyers invest in US residential real estate from CNBC. Subscribelast_img read more

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