Severity of Financial Crisis to Blame for Slow Wage Growth

first_img Derek Templeton is an attorney based in Dallas, Texas. He practices in the areas of real estate, financial services, and general corporate transactional law. His experience includes time as an Attorney Adviser for the U.S. Small Business Administration and as General Counsel for a nonprofit organization in Dallas. A self-avowed “policy junkie,” he has a keen interest in the effect that evolving federal policy has on the mortgage, default servicing, and greater housing industries. Demand Propels Home Prices Upward 2 days ago Severity of Financial Crisis to Blame for Slow Wage Growth Related Articles Tagged with: Market Studies Wages Wells Fargo Economics Group The labor market has taken significant steps in the quest to return to pre-recession employment levels. Still, concerns remain among many about the quality of jobs being created. Wages have increased over the past year but at only a 2.3 percent growth rate, they lag behind the growth rate that they should be experiencing at this point in the business cycle. A change may be in the air.Wells Fargo Economics Group released a report asserting that the slow growth in hourly earnings stemmed not from the composition of the jobs being created but from the ripple effects of the severe economic downturn that gripped the nation from 2007 to 2009. Specifically, the report cites the possibility that employers who were reluctant to make wage cuts and lay off employees in the middle of the recession are now restraining wage growth as a way to make up for that decision.Slack in the labor market has been an important key to keeping wages from growing at a more rapid rate. The glut of quality employees available to employers has weakened the bargaining power of employees, keeping wages lower than they should be. If Jim won’t do the job at a discounted rate, Ray, Susan, or Bob surely will.There are signs of hope for employees, according to the report. Slack in the labor market has decreased significantly over the past year. The unemployment rate has dropped to 6.1 percent and quality employees are beginning to become scarcer in the marketplace, which in theory, will release a lot of pent up wage growth pressure.“Growth in average hourly earnings in the top quintile has already risen from 1.6 percent a year ago to about 3 percent at present,” the report said. “Looking forward, there likely will be more acceleration, not only for top wage earners but for workers in other wage quintiles as well. Wage pressures should be mounting as slack in the labor market has broadly declined, illustrated by the further decline in the unemployment rate.”Wells Fargo predicts that wages will grow gradually over the next year but barring some unforeseen jump in growth, it is unlikely that the Fed will be compelled to raise interest rates until sometime in the middle of 2015. Market Studies Wages Wells Fargo Economics Group 2014-07-24 Derek Templeton Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Previous: Senior RMBS Trader Convicted of Fraud Next: Report: Zillow Seeking to Acquire Trulia The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Severity of Financial Crisis to Blame for Slow Wage Growth Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Derek Templetoncenter_img Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago July 24, 2014 937 Views The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Headlines, Market Studies, News Share Save Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

Bank of America Further Reduces Size of Delinquent Mortgage Loan Division

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. Data Provider Black Knight to Acquire Top of Mind 2 days ago February 17, 2015 1,281 Views Bank of America Delinquent Mortgage Loans Large Banks 2015-02-17 Brian Honea Related Articles 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 Tagged with: Bank of America Delinquent Mortgage Loans Large Banks  Print This Post As the size of Bank of America’s delinquent loans portfolio is shrinking, so is the megabank’s workforce – late last week, the bank announced that it was laying off 250 employees from its delinquent mortgage loan division in its headquarters city of Charlotte, North Carolina.The affected employees worked in the bank’s Legacy Asset Servicing Division, which is the division at the bank that handles troubled loans, according to a release from the bank.”The size of the delinquent mortgage portfolio has reduced to just 189,000 loans at the end of Q4, down from a peak of 1.4 million in January 2011,” the bank said in a statement. “We continue to reduce the size of our mortgage servicing operations in line with the successful reduction of our portfolio of delinquent mortgage customers. We have a strong track record for working with employees to identify opportunities both inside and outside the bank.”Bank of America originally announced it was laying off 540 Legacy Asset Servicing workers in Charlotte last June. According to the bank, 150 of those employees were successfully transitioned to short-term roles which are now nearing completion; those 150 were included in the layoffs announced late last week.A report in the Charlotte Observer indicated that the number of employees in Bank of America’s troubled mortgage division had declined by nearly two-thirds in slightly more than two years – from almost 50,000 in 2012 down to about 17,100 in December 2014. Meanwhile the bank’s delinquent loans have also seen a 42 percent decline from the fourth quarter of 2013 to the fourth quarter of 2014, down to about 189,000, according to the report.Bank of America augmented its troubled mortgage division in response to the financial crisis and in particular to handle the subprime loans the bank acquired when it bought out Countrywide in 2007. Bank of America has since had to pay billions in settlements to the Department of Justice over the packaging and selling of faulty mortgage-backed securities, largely due to the activities of Countrywide. That includes a record $16.65 billion settlement with the DOJ in August 2014. Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Bank of America Further Reduces Size of Delinquent Mortgage Loan Division Bank of America Further Reduces Size of Delinquent Mortgage Loan Division Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: DS News Webcast: Tuesday 2/17/2015 Next: Three Firms Settle With Pension Fund for $235 Million Over RMBS Fraud Complaints Servicers Navigate the Post-Pandemic World 2 days ago About Author: Brian Honea in Daily Dose, Featured, News, REO Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Share Savelast_img read more

Report: Senator Drafting Proposal to Reform Federal Reserve

first_img The Best Markets For Residential Property Investors 2 days ago Report: Senator Drafting Proposal to Reform Federal Reserve Sign up for DS News Daily  Print This Post The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: House Committee Issues Subpoenas to DOJ, Treasury, New York Fed Next: Legislation in New Jersey, Ohio Aimed at Expediting Lengthy Foreclosure Process Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days agocenter_img Federal Reserve Senate Banking Committee Senator Richard Shelby 2015-05-11 Brian Honea Demand Propels Home Prices Upward 2 days ago Subscribe May 11, 2015 1,625 Views Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Federal Reserve Senate Banking Committee Senator Richard Shelby Data Provider Black Knight to Acquire Top of Mind 2 days ago 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. About Author: Brian Honea U.S. Senator Richard Shelby (R-Alabama), Chairman of the Senate Banking Committee, has legislation in the works that would significantly change the U.S. Federal Reserve Board of Governors, according to media reports.Citing “multiple sources briefed on the bill,” the Hill reported that Shelby’s proposed legislation calls for the establishment of a congressional commission to restructure the Fed. Barring a joint resolution of disapproval from Congress, the Fed would be required to implement whatever changes the commission suggests.Senator Jack Reed (D-Rhode Island) has reportedly included in the draft of the legislation a provision that would make the appointment of the president of the Federal Reserve Bank of New York subject to Senate approval. Currently, the president of each of the 12 regional Federal Reserve Banks is selected by a search committee and subject to approval of the Federal Reserve Board of Governors.According to the report from the Hill, a group of bipartisan lawmakers has expressed concern recently that the New York Fed is too powerful, especially considering its close physical proximity to Wall Street.Even though the bill being drafted is bipartisan, some Democrats on the Senate Banking Committee, including Ranking Member Sherrod Brown (D-Ohio) have reportedly expressed concerns about the bill, believing it could pave the way to make further amendments to the controversial Dodd-Frank Wall Street Reform and Consumer Protection Act.Whether or not Shelby’s bill can get a floor vote will depend on getting the support of the moderate Democrats on the Committee, according to reports.Spokespersons from both Reed’s and Shelby’s offices did not immediately respond to a request for comment.The draft of the bill also includes a provision that provides a formula for raising interest rates by requiring the Fed’s policymakers to use a mechanical rule for establishing monetary policy; a provision to reduce the amount of time it takes the Fed to publish transcripts from the Federal Open Market Committee; a provision to increase the threshold for designating a financial institution as “systemically important” from $50 billion to $500 billion; and a provision to increase the threshold for regulators to define a “small bank” from $10 billion to $50 billion in assets, according to reports. in Daily Dose, Featured, Government, News Home / Daily Dose / Report: Senator Drafting Proposal to Reform Federal Reservelast_img read more

Calendar Pushes 30-Day Delinquency Rate Upward

first_img The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Calendar Pushes 30-Day Delinquency Rate Upward January saw a spike in the number of residential mortgage loans that were 30-plus days delinquent, and a big driver of that was the calendar, according to the Black Knight Financial Services “First Look” at January 2016 Mortgage Data released on Monday.Delinquencies rose by 6.6 over-the-month in January up to 5.09 percent, the first time the delinquency rate has been over 5 percent in 11 months. The number of 30-day delinquent properties was up by 167,000 over-the-month in January, up to 2.57 million, according to Black Knight. The fact that January ended on a Sunday played a role in the monthly increase, according to Ben Graboske, SVP of Black Knight Data and Analytics.“January’s spike in delinquencies seems to be more calendar driven than seasonal. January was a month that ended in a Sunday, so any payments made on the last two days of the month couldn’t be processed until February,” Graboske said. “We’ve observed this phenomenon often in the past. January delinquency rate increases themselves are uncommon, but if we compare this rise against the last five Sunday month-ends, the rise is actually on par for what we’d typically see.”Despite the monthly spikes, the inventory of loans 30 or more days delinquent but not in foreclosure was down over-the-year in January by 7 percent, computing to about 189,000 properties.The number of loans in active foreclosure continued a long-term trend of improvement in January, dropping by 26 percent over-the-year and 4.5 percent over-the-month down to about 1.3 percent of all residential mortgage loans (about 659,000 properties). It is the lowest foreclosure inventory rate since November 2007.Foreclosure sales went up in January, as they typically do when seasonal foreclosure moratoriums expire. Foreclosure completions jumped by 16 percent from December to January. The monthly prepayment rate, which is typically a good indicator of refinance activity, declined by nearly 29 percent over-the-month in January despite declining interest rates throughout the month.Click here to see Black Knight’s complete First Look at Mortgage Data for January 2016.  Print This Post Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Tagged with: Black Knight Financial Services Mortgage Delinquencies Calendar Pushes 30-Day Delinquency Rate Upward Subscribe About Author: Brian Honea Related Articles Servicers Navigate the Post-Pandemic World 2 days agocenter_img in Daily Dose, Featured, Foreclosure, News Share Save Black Knight Financial Services Mortgage Delinquencies 2016-02-22 Brian Honea February 22, 2016 1,695 Views 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 Demand Propels Home Prices Upward 2 days ago 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 Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: The Week Ahead: Will the GDP Bounce Back? Next: DS News Webcast: Monday 2/29/2016last_img read more

Freddie Mac: Lessons Learned from the Crisis

first_img The mortgage servicing industry has become stronger and more efficient in a post-crisis world due to the efforts of servicers to delegate authority to make modification decisions and to offer modifications with more favorable terms to borrowers, such as step rate mortgages and principal forbearance, according to Yvette Gilmore, VP Single-Family Servicer Performance Management with Freddie Mac.Gilmore stated that Treasury’s Home Affordable Modification Program (HAMP) has played an important role in helping borrowers by setting industry standards to assist in a unified way.Nearly eight years after the crisis, the five lessons Gilmore said Freddie Mac has learned from the crisis are as follows:Lower paymentsEarlier borrower engagementReduced documentationSimpler programsMore feedbackPayment relief drives ongoing modification performance and is the biggest predictor of long-term success for borrowers, Gilmore said. And the earlier servicers can engage with a borrower, the better the chances of completing a modification and the greater chance it will perform better over time.“Together with our servicers we have helped nearly 1.2 million struggling homeowners avoid foreclosure since the crisis began in 2009,” Gilmore said. “Our serious delinquency rate—the percent of borrowers who are 90 days past due or in foreclosure—is at its lowest level in seven years. And an improving housing market and economic picture bode well for many homeowners who are underwater or struggling.”Freddie Mac is currently preparing for the “new normal” in mortgage servicing for 2017 and beyond, Gilmore said. The current outlook is for fewer underwater borrowers, rising mortgage interest rates, and “more localized patterns of booms and stress in the housing market and the economy as a whole.”The new normal includes making sure that loss mitigation programs continue to be effective for borrowers, which includes planning for a world without the government’s HAMP and Home Affordable Refinance Program (HARP), both of which are set to expire at the end of the year.These are important considerations we’re thinking through with our regulator, the Federal Housing Finance Agency, and the industry,” Gilmore wrote. “However, I think it’s important to note that the majority of modifications we complete today are through our proprietary programs.”Also to be considered in the era of the new normal, Gilmore said, is how to determine borrower eligibility—for example, when to require documentation and when a streamlined process is necessary. July 11, 2016 1,927 Views Servicers Navigate the Post-Pandemic World 2 days ago Freddie Mac: Lessons Learned from the Crisis Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily  Print This Post Data Provider Black Knight to Acquire Top of Mind 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 The Best Markets For Residential Property Investors 2 days ago Share Save Related Articlescenter_img Demand Propels Home Prices Upward 2 days ago Tagged with: Freddie Mac Loss Mitigation Mortgage Services Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Freddie Mac Loss Mitigation Mortgage Services 2016-07-11 Brian Honea Home / Daily Dose / Freddie Mac: Lessons Learned from the Crisis About Author: Brian Honea Demand Propels Home Prices Upward 2 days ago Previous: FHFA: Time to Solicit Borrowers for Principal Reduction Next: Ginnie Mae Welcomes New Chief Operating Officer 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Loss Mitigation, Newslast_img read more

Average Credit Scores for Potential Homebuyers Dip

first_img Previous: Landmark Network, Inc. Announces Support Program for Lenders Next: PHH Moves Forward With Updated Servicing Standards Share Save Related Articles The credit score for all borrowers dipped to 722 in November 2017 from 728 in November 2016, according to a report released by Ellie Mae, a cloud-based platform provider for the mortgage finance industry, on Wednesday. The report, which also gave indicators on millennial borrowers through the Ellie Mae Millennial tracker, said that average FICO score for closed loans to millennials dropped to 723 in November 2017 from 725 in the year-ago period even as some lenders were making it easier to get a home loan by lowering their FICO score requirements to attract a larger pool of potential first-time homebuyers.“With the average credit score dipping, lenders are extending credit to borrowers who may have had no previous access to the housing market,” said Joe Tyrell, EVP of Corporate Strategy at Ellie Mae.While the Millennial Tracker, an online interactive tool that provides access to demographic data on millennial homebuyers, showed a slight decline in the overall average scores for closed loans to millennials year-over-year, the trend was most pronounced for FHA and VA loans to this generation of homebuyers.According to the tracker, the average FICO score on a closed FHA refinance loans to millennial borrower in November 2016 was 678. This score dropped to 669 in November 2017. The report also indicated that closed VA refinance loans decreased from 725 to 710 year-over-year.Conventional loans remained the most popular loan product for millennial borrowers at 66 percent of total closed loans with FHA accounting for 30 percent of closed loans for the second month in a row. During this period, VA loans represented only 2 percent of all closed loans.Across all loans, the average time to close increased to 44 days up from 43 days in October. However, the average time to close FHA loans decreased to 43 days, from 46 in the month prior.In terms of demographics, the report indicated that men continued to make up the majority of primary borrowers with women making up only 32 percent or one-third of closed loans. Among women who were listed as the primary borrower, 40 percent were identified as married, 59 percent as single and one percent as separated. This is nearly inverse to male primary borrowers, among which 58 percent were listed as married and 42 percent as single. The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Journal, Market Studies, News Tagged with: Credit Scores Ellie Mae ellie mae millennial tracker Millennials Servicers Navigate the Post-Pandemic World 2 days ago Average Credit Scores for Potential Homebuyers Dip January 3, 2018 2,619 Views The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Average Credit Scores for Potential Homebuyers Dip Credit Scores Ellie Mae ellie mae millennial tracker Millennials 2018-01-03 David Wharton The Best Markets For Residential Property Investors 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 Sign up for DS News Daily Subscribelast_img read more

Quick Turnarounds for Foreclosure Sales

first_img Share Save foreclosure sales Foreclosures MLS REO 2019-09-03 Seth Welborn Tagged with: foreclosure sales Foreclosures MLS REO Demand Propels Home Prices Upward 2 days ago Related Articles The majority of foreclosure sales to third-party buyers are owner occupied within a year, according to a new study from Auction.com. Auction.com’s Seller Strategy Report notes that 56% sold of properties sold to third parties at foreclosure sale in Q2 2018 were Owner-Occupied a year later, compared to 43% that reverted to the lender.Additionally, third-party foreclosure sales executed higher relative to credit bid at the foreclosure sale than did properties sold as REO, and properties sold via “Day 1” REO online auction sold on average 95 days faster than REOs sold via the MLS..“By synthesizing the rich transactional data from our market-leading platform with public record and MLS data, we’re able to provide a holistic view of the disposition metrics that matter to distressed property sellers,” said Jason Allnutt, CEO at Auction.com. “At the top of that list are execution of the sale price relative to credit bid, time to sell a property, and impact on the surrounding neighborhood.”Opportunity Zones execute higher to reserve than non-opportunity zones, with properties in Opportunity Zones that sold to third-party buyers at foreclosure auction executed 5 percentage points higher relative to reserve than properties located outside of Opportunity Zones. Homes in Opportunity Zones are cheaper, in general, as well. ATTOM Data Solutions reports that 80% of these zones had median home prices in the Q2 2019 that were below the national figure of $266,000, and that half had median prices of less than $150,000.Additionally, compared to the surrounding regions, median Q2 2019 prices in about one in four zones were less than 50% of the typical value in the Metropolitan Statistical Areas where they exist. Within Opportunity Zones, 86% had median Q2 2019 sales prices that were less than the median sales price for the surrounding Metropolitan Statistical Area (MSA). Roughly 26% had median sales prices less than half the figure for the MSA. Only 14% had median sales prices that were equal to or above the median sales price in the MSA. Previous: Gateway Mortgage Group Names Makes Inc. 5000 Next: Fintechs Leading the Way for VA Loans The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily About Author: Seth Welborn Servicers Navigate the Post-Pandemic World 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. center_img The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Foreclosure, News, REO, Secondary Market Quick Turnarounds for Foreclosure Sales Servicers Navigate the Post-Pandemic World 2 days ago September 3, 2019 2,368 Views Home / Daily Dose / Quick Turnarounds for Foreclosure Sales Demand Propels Home Prices Upward 2 days ago  Print This Post Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Ginnie Mae Approves Facility to Aid in Servicer Liquidity

first_img The Best Markets For Residential Property Investors 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Ginnie Mae Approves Facility to Aid in Servicer Liquidity April 7, 2020 3,684 Views Ginnie Mae Approves Facility to Aid in Servicer Liquidity Ginnie Mae Liquidity 2020-04-07 Mike Albanese The Week Ahead: Nearing the Forbearance Exit 2 days ago Share 4Save 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. Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Tagged with: Ginnie Mae Liquidity Previous: The Price of Keeping People in Their Homes Next: Florida Suspends Foreclosures, Evictions for 45 Days 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 Related Articles Ginnie Mae announced Tuesday it has approved the inclusion of a facility to advance financing under its Acknowledgement Agreement program. The agreement states Ginnie Mae has permitted a Note Securitization (NS) structure, which was developed in 2016 and allows for the securitization of servicing cash flows through a trust. A release from Ginnie Mae says this structure has been “strongly supported” by institutional investors that lacked a vehicle for investing in mortgage servicing rights (MSRs). Five of Ginnie Mae’s top 11 issues—based on February issuance volume—use the NS structure. “Owning and servicing MSRs is a capital-intensive proposition, and the more avenues that exist for private capital to flow into the system on attractive terms, the easier it becomes to fulfill our mission of bringing global capital into the US housing market, while minimizing risk to the taxpayer,” said Ginnie Mae Principal EVP Seth Appleton. “We are pleased to have been able to finalize this transaction, because it represents another step forward in the improvement of the liquidity supply for the housing finance system.”Outstanding financing under the NS structure exceeded $2 billion at the end of 2019, according to Ginnie Mae. Ginnie Mae previously announced plans to create an All Participants Memorandum (APM) to address liquidity issues related to the impacts of COVID-19. The program is called a Pass-Through Assistance Program (PTAP) and lenders with a P&I shortfall may request Ginnie Mae advance the difference between available funds and the scheduled payment to investors. “This PTAP will be effective immediately upon publication of the APM for Single Family program issuers, with corresponding changes made to Ginnie Mae’s MBS Guide in due course,” a release says. “We anticipate publishing PTAP terms for HMBS (reverse mortgage) and Multifamily issuers shortly thereafter.” Ginnie Mae states the advancement of funds by the agency to an issuer as a result of disaster declaration by the President of the United State would be considered an “event of default” under its programs. Issuers will be required to sign an agreement with Ginnie Mae and must repay the advance between a specific time period.Ginnie Mae said borrowing under the PTAP should be a “last resort” to alleviate the liquidity shortage faced by issuers of Ginnie Mae.   About Author: Mike Albanese in Daily Dose, Featured, Loss Mitigation, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

Mortgage Forbearance Rates Decline

first_img Share Save Related Articles Home / Daily Dose / Mortgage Forbearance Rates Decline in Daily Dose, Featured, Journal, Market Studies, News July 29, 2020 1,923 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Forbearance MBA 2020-07-29 David Wharton  Print This Post Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad. Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Mortgage Forbearance Rates Decline The Mortgage Bankers Association (MBA) has released its most recent Forbearance and Call Volume Survey results, covering the period from July 13 through July 19, 2020. The survey, which represents three-quarters of the first-mortgage servicing market (a total of 37.3 million loans), shows that the total number of loans currently in forbearance has fallen by six basis points from last week.Specifically, the statistics show that loans in forbearance decreased from last week’s 7.80% of servicers’ portfolio volume to 7.74%. This loosely translates into 3.9 million homeowners being currently embroiled in forbearance plans (estimate provided by MBA).The survey further breaks down particular details regarding specific loaning institutions, including Fannie Mae and Freddie Mac. MBA reported that loans financed by the GSEs and currently in forbearance fell for the seventh week in a row (down to 5.49%). This change marks a 15-basis-point improvement.Regarding Ginnie Mae loans in forbearance, those rose by one basis point (up to 10.27%). As for the forbearance share for portfolio loans and private-label securities (PLS), those increased by 12 basis points (up to 10.53%). The percentage of loans in forbearance for depository servicers also experienced a drop (down to 8.06%), and those loans currently in forbearance for independent mortgage bank (IMB) servicers experienced an uptick (rising to 7.85%).MBA’s SVP and Chief Economist Mike Fratantoni commented on these recently divulged details: “The share of loans in forbearance declined by a smaller amount than in previous weeks, as the pace of borrowers exiting forbearance slowed. Although the GSE portfolio of loans in forbearance should continue to improve, Ginnie Mae’s portfolio saw an uptick of both loans in forbearance and borrowers requesting forbearance. The high level of unemployment claims in recent weeks may be playing a role, as weakness would likely impact Ginnie Mae’s portfolio first.”Fratantoni continued: “As a result of large buyouts from Ginnie Mae pools in recent weeks, many FHA and VA loans are now being held as portfolio loans by bank servicers. That is why the share of portfolio loans in forbearance has increased and is now typically at a higher level than that for Ginnie Mae loans.” Sign up for DS News Daily center_img About Author: Andy Beth Miller The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: The Fight Against Zombie Properties Next: Kathleen Kraninger Provides CFPB Update to Congress Demand Propels Home Prices Upward 2 days ago Tagged with: Forbearance MBA The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

A Closer Look at a Record-Breaking Year

first_img Last year was a record-breaking year within the housing market—low interest rates, high demand, low inventory, high home prices, and home price growth, to name a few of the all-time and longtime highs and lows recorded in 2020. Thanks to government and agency programs, the foreclosure rate is low, even as delinquencies are way up.  It also turned out to be the best year on record for first-time homebuyers. In fact,  2.38 million Americans reportedly became first-time homebuyers in 2020, which is up 14% from the same period a year ago.Genworth Mortgage Insurance’s Chief Economist Tian Liu dives into trends’ causes and effects in the company’s fourth-quarter and full-year 2020 report.“Out of 2020 came a housing boom with rapidly rising home prices and a new construction boom in single-family homes,” Liu said. “More recently, despite the COVID-19 pandemic and a deep recession, the U.S. housing market has staged an unexpected and strong rebound in the second half of 2020, resulting in a record number of first-time homebuyers,” Liu said. She added that the pandemic and resulting economic impact increased housing demand in many ways. “Working from home, remote learning, and other social distancing measures have forced homes to become the end all be all, ultimately resulting in an increase in a home’s value to homebuyers. Large expenditures on travel, leisure, entertainment, and personal services have decreased significantly throughout the pandemic, freeing up disposable income to be used toward housing.”While the unemployment rate has increased overall, its impact, Liu says, “has been more muted on higher-income earners who are more likely to become potential homebuyers—so the job losses have had less effect on housing.”She also spoke about the effect of pandemic-related forbearance programs, which, she says, might have benefitted some home shoppers, possibly influencing opportunities and behaviors. Not only has foreclosure moratoria and forbearance allowances kept many in their houses, forbearance programs on student loans, credit cards, and auto loans, temporarily reduced debt repayment for some.”The real estate and housing finance industries have successfully maintained the functioning of the housing market by reducing the amount of face-to-face interactions in homebuying, selling, and financing,” the economist says. “The forbearance program in the mortgage industry prevented foreclosures by borrowers impacted by the pandemic and helped stabilize the housing market. Finally, fiscal stimulus under the CARES Act helped to maintain spending and income levels, which prevented spillover from the public health crisis into a broader economic and housing crisis. Together, all of these factors made 2020 the best year on record for the first-time homebuyer market.”Some further takeaways from the Genworth report include:657,000 single-family homes were purchased––up 26.4% from a year ago; First-time homebuyers reached 2.76 million (seasonally-adjusted annual rate) in Q4, their fastest pace on record.For the full year, first-time homebuyers represented a higher percentage of homebuyers (40% vs. 38% in 2019) in the single-family housing market, and a higher percentage of purchase loan borrowers (56% vs. 55% in 2019) in the mortgage market.The aging of the millennial population implies that the increase in first-time homebuyers over the age of 30 may lead to an overall increase in the number of first-time homebuyers in the 25-44 age group, which could be in the order of 580,000 first-time homebuyers over five years.Affordability conditions remained favorable for first-time homebuyers compared to the pre-pandemic period in 2019. Rapid growth in housing demand and rising home prices were powerful incentives for homebuilders to ramp up production with single-family housing starts increasing by 18 percent during Q4’20 to a seasonally-adjusted annual rate of 1.23 million units, the highest quarter since the fourth quarter of 2006.These mortgages financed 1.94 million (81 percent) first-time homebuyers in 2020, up two percentage points from 2019; The biggest year for the low down payment mortgage market in history.899,000 first-time homebuyers used conventional mortgages with PMI to finance their first home purchase in 2020, up 25 percent from a year ago. Servicers Navigate the Post-Pandemic World 1 day ago in Daily Dose, Featured, Market Studies, News Related Articles The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 1 day ago Data Provider Black Knight to Acquire Top of Mind 1 day ago About Author: Christina Hughes Babb 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. A Closer Look at a Record-Breaking Year Home / Daily Dose / A Closer Look at a Record-Breaking Year Data Provider Black Knight to Acquire Top of Mind 1 day ago March 23, 2021 785 Views Servicers Navigate the Post-Pandemic World 1 day ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 1 day ago 2021-03-23 Christina Hughes Babb Share Save  Print This Post Previous: Forbearance Requests Slide to New Lows Next: Best Metros for Renters Looking to Buy a House Sign up for DS News Daily Subscribelast_img read more