Month: May 2021

Case-Shiller: Home Prices Continue To Rise, Albeit Slowly

first_img The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Case-Shiller: Home Prices Continue To Rise, Albeit Slowly Demand Propels Home Prices Upward 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 Home Prices S&P/Case-Shiller Home Price Indices 2014-05-27 Tory Barringer May 27, 2014 608 Views Tagged with: Home Prices S&P/Case-Shiller Home Price Indices  Print This Post Home prices continued to ascend through the end of the first quarter, though increases slowed down to match other weak indicators.The S&P/Case-Shiller Home Price Indices, released Tuesday, recorded a seasonally adjusted 1.2 percent monthly rise in prices across 20 of the country’s top markets. Removing adjustments, the index climbed 0.9 percent month-over-month.A consensus forecast from economists surveyed by Econoday called for an adjusted monthly increase of 0.7 percent.Compared to a year ago, March prices were up 12.4 percent, a step back from the 12.9 percent annual increase recorded in February.”The year-over-year changes suggest that prices are rising more slowly,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Annual price increases for the two Composites have slowed in the last four months and 13 cities saw annual price changes moderate in March.”Despite decelerating price growth, all cities in the composite index posted higher prices than a year ago, and four locations—Boston, Charlotte, Portland, and San Francisco—are now within 15 percent of their previous peaks. Denver and Dallas, which recovered to their perspective peaks months ago, continue to push up, meanwhile.The latest index release also included quarterly data, showing prices rising 0.2 percent quarter-to-quarter in Q1. Compared to last year, prices were up 10.3 percent.Looking at other market indicators, Blitzer says the picture “remain[s] mixed.””April housing starts recovered the drop in March but virtually all the gain was in apartment construction, not single family homes,” he said. “New home sales also rebounded from recent weakness but remain soft.”At the same time, he added, “Other comments include arguments that student loan debt is preventing many potential first time buyers from entering the housing market.” Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Home / Daily Dose / Case-Shiller: Home Prices Continue To Rise, Albeit Slowly The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save in Daily Dose, Featured, Headlines, Market Studies, News Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Ohio Bank Fails; Eighth This Year Next: Julián Castro Officially Nominated as HUD Secretary Subscribe Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Boomerang Buyers Dust Themselves Off to Re-enter Market

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Boomerang Buyers Dust Themselves Off to Re-enter Market in Daily Dose, Featured, News Sign up for DS News Daily 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 Tagged with: boomerang buyer CoreLogic Experian Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days agocenter_img Home / Daily Dose / Boomerang Buyers Dust Themselves Off to Re-enter Market Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago During the financial crisis and housing burst, an unprecedented number of homeowners relinquished their homes to foreclosure or other non-foreclosure actions and thus felt the repercussions of having the mark of foreclosure, short sale, or bankruptcy on their credit report for the next seven years. Now coming into the eighth year since the peak of the crisis, 2.5 million consumers are set to potentially re-entering the market with a clean credit file and fresh perspective between June 2016 and June 2017.In examining the consumers who foreclosed or short-sold between 2007 and 2010 and have since opened a new mortgage, it was found that these “boomerang borrowers” are showing responsible credit behaviors, have improving credit scores and are current on their debts.”With millions of borrowers potentially coming back into the housing market, the trends that we’re seeing are promising for both the mortgage seeker and the lender,” said Michele Raneri, VP of Analytics and New Business Development at Experian. “In the coming years, boomerang borrowers will be a critical segment of the real-estate market. While many of these borrowers have gone through a very difficult time, it is encouraging to see them taking control of their finances with better credit scores and all-around better credit management.”According to a recent report from Experian, 68 percent of these consumers are scoring in the near-prime or higher credit segments. This means that the opportunity for these consumers to qualify for mortgage loans is growing stronger. Additionally, the research shows that the people in the short-sale category are rebounding at a higher rate than those who foreclosed, and are making their payments on time.Experian reported that nearly 29 percent of those who short-sold between 2007 and 2010 have opened a new mortgage, but only 1.5 percent of this short-sale group is delinquent on their mortgage; a number that has fallen below the national average of 2.8 percent.Likewise, more than 12 percent of those who foreclosed have subsequently opened new mortgages and are showing positive signs when it comes to credit management with just 3 percent delinquent on their current mortgage.The VantageScore (developed by Experian, Equifax, and Trans Union) credit scores of the boomerang buyers have climbed significantly since their foreclosures and short sales, even surpassing the scores they had prior to the negative event. The consumers who previously had a foreclosure and have subsequently opened a mortgage have an average credit score of 680, a 20.8 percent increase compared with the scores at the time of foreclosure.In comparison, the consumers who previously had a short sale and have subsequently opened a mortgage have an average credit score of 706, an increase of 16.5 percent from the scores at the time of short sale.This increase in boomerang buyers’ credit scores could bode well for the ability of these consumers to obtain a mortgage loan again.A report from CoreLogic’s Kristine Yao found that boomerang buyers are, on average, four times more likely to finance with FHA loans than traditional non-distressed, owner-occupied repeat buyers. FHA loans are, as a general rule, easier to obtain than conventional loans for cash-strapped borrowers with past foreclosures in their credit history because FHA guidelines allow potential borrowers to apply for a loan three years after the foreclosure sale date with a minimum 3.5 percent down and a credit score of at least 580.With more ease of access to boomerang buyers, it is no surprise that states hit hardest by the foreclosure crisis were reported to have the highest shares of boomerang buyers return based on 2007 through 2013 total foreclosures.Specifically, Los Angeles, California; Phoenix, Arizona; and Sacramento, California have the largest number of these buyers, congruent with the states CoreLogic identified as having the highest share of boomerang buyers. CoreLogic showed that three highest boomerang buyer states, which were Arizona, Nevada, and Michigan, each saw 32 percent of foreclosed homeowners purchase again, 10 percentage points higher than the national boomerang buyer share. Likewise, California and Florida, states with the highest total foreclosures, had boomerang buyer shares of 24.8 percent and 20.3 percent, respectively. Previous: Homeownership Rate Rises From Lowest on Record Next: Treasury: Here’s What Housing Reform Should Look Like About Author: Kendall Baer boomerang buyer CoreLogic Experian 2016-10-27 Kendall Baer October 27, 2016 2,049 Views Subscribelast_img read more

Spokesman: Carson Was Not Offered HUD Secretary Job

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News Sign up for DS News Daily About Author: Brian Honea Dr. Ben CarsonA report from the Wall Street Journal on Wednesday afternoon cited Dr. Ben Carson spokesman Armstrong Williams as stating that the former Republican presidential candidate and retired neurosurgeon had accepted an offer from President-elect Donald Trump to be the new HUD Secretary.Later in the afternoon, however, the WSJ revised its story, saying that Carson was “being considered” for the HUD job. Later on Wednesday, Reuters reported Williams as saying that Carson had never been offered the HUD job.Trump tweeted on Tuesday that he was “seriously considering” the 65-year-old Carson to lead HUD. The announcement was surprising to many because Carson has no experience with serving in government or with housing policy.Carson stated earlier in November that he was not interested in serving in the Trump Administration. He seemed to have a change of heart after meeting with key members of Trump’s Administration, however.“After serious discussions with the Trump transition team, I feel that I can make a significant contribution particularly to making our inner cities great for everyone,” Carson said on his Facebook page.Following Trump’s tweet on Tuesday, Carson gave an interview on Fox News in which he confirmed that the HUD position was “one of the offers on the table.”Carson has spoken out about housing policy in the recent past; in 2015, he wrote an editorial for the Washington Times criticizing the Obama Administration’s Affirmatively Furthering Fair Housing Rule, which passed in 2015.Having been raised in the inner city of Detroit, Carson is passionate about revitalizing the inner cities. In the Fox News interview on Tuesday, he told Neil Cavuto, “You know, there have been so many promises made over the last several decades, and nothing has been done. So it certainly is something that has been a long-term interest of mine. And I’ll be thinking and praying about it seriously.”Current HUD Secretary Julián Castro, an Obama appointee, has held that position since July 2014.  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Spokesman: Carson Was Not Offered HUD Secretary Job Demand Propels Home Prices Upward 2 days agocenter_img Tagged with: Ben Carson HUD Secretary Previous: What’s Driving Innovations in Real Estate Auctions? Next: Home Prices Jump Up in Q3 Share Save Related Articles Spokesman: Carson Was Not Offered HUD Secretary Job 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 Ben Carson HUD Secretary 2016-11-23 Kendall Baer Subscribe Servicers Navigate the Post-Pandemic World 2 days ago November 23, 2016 1,284 Views Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

NFIP Extended Through November

first_img in Daily Dose, Featured, Government, Loss Mitigation, News Tagged with: Disaster flood nfip Servicers Navigate the Post-Pandemic World 2 days ago September 30, 2019 3,982 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Home / Daily Dose / NFIP Extended Through November 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 President Donald Trump recently signed a a continuing resolution that will avoid a federal government shutdown by funding the government at current levels until November 21. Included in the resolution is an extension of the National Flood Insurance Program (NFIP) through November 21.September 30 was the deadline for Congress to reauthorize the NFIP. Lawmakers have been taking some steps to update the NFIP. For example, Senator Cindy Hyde-Smith of Mississippi 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.Through the NFIP-RE Act, Hyde-Smith suggests a new community mapping appeals process regarding flood maps created by the Federal Emergency Management Agency (FEMA) for states, local governments, or property owners, as well as a direction to FEMA to factor nonfederal flood control structures, like levees, when determining flood risk zone designations.Additionally, the bill would increase NFIP participation among homeowners and small businesses by capping the premium rate increases to 9%.  Under the current system, rates can rise up to 25% annually in perpetuity.“Runaway premium hikes under the current system undermine and weaken the flood insurance program, which increases the burden on taxpayers to pay for federal disaster assistance to cover uninsured losses,” Hyde-Smith said.  “There’s no point in having flood insurance if nobody can afford it. This bill would help meet the equally important goals of solvency and affordability.” Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: FHFA Director Mark Calabria Talks Increased GSE Capital Retention Next: Tracking Home Equity Growth Since 2012 Disaster flood nfip 2019-09-30 Seth Welborncenter_img Share Save Servicers Navigate the Post-Pandemic World 2 days ago About Author: Seth Welborn  Print This Post 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 NFIP Extended Through November The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

The Week Ahead: Update on Unemployment

first_img in Daily Dose, Featured, Government, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 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. Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / The Week Ahead: Update on Unemployment Tagged with: Employment Week Ahead Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: How the CARES Act Impacts Mortgage Servicers Next: What’s Happening with Mortgage REITs? Related Articles Share Save The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily center_img On April 3, the U.S. Bureau of Labor Statistics will release its latest unemployment report. In the week ending on March 21, there were 3,283,000 claims for insured unemployment, an increase of 3,001,000 from the previous week’s revised level. According to the United States Department of Labor, this is the largest increase in history, as the previous high was 695,000 in October of 1982.Most states cited COVID-19 virus impacts in their unemployment reports. States continued to cite services industries broadly, particularly accommodation and food services. Additional industries heavily cited for the increases included the health care and social assistance, arts, entertainment and recreation, transportation and warehousing, and manufacturing industries.“This sudden increase in UI claims reflects the shock to demand in the economy,” said Doug Duncan, Chief Economist at Fannie Mae. “For a large segment of the workforce, the rapidly deteriorating employment situation is due to the spread of the COVID-19 outbreak, as well as the associated policy restrictions and shifts in consumer behavior, both aimed at avoiding infection. We interpret this morning’s release as a strong leading indicator of an expected increase in household financial stress.””The stimulus bill proposal currently working its way through Congress seeks to address certain features of the UI systems, such as eligibility requirements and the amount and maximum duration of benefits paid, which are intended to help alleviate some of the financial stressed caused by job loss,” Duncan continues. “Furthermore, payments to households are designed to make up for lost earnings. Proposed support for businesses is intended to help them survive the shock to demand in order to be positioned to re-hire workers after the virus subsides and demand picks back up.”Here’s what else is happening in The Week Ahead:Pending Home Sales Index (March 30)CoreLogic Case-Schiller Index (March 31) Servicers Navigate the Post-Pandemic World 2 days ago Employment Week Ahead 2020-03-28 Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago March 28, 2020 1,269 Views The Week Ahead: Update on Unemployment Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

The Week Ahead: Signs of Improvement in Labor Market

first_img Demand Propels Home Prices Upward 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, News Share Save The U.S. Department of Labor will release its initial jobless claims on Friday.This report will come just a week after the Bureau of Labor Statistics revealed the U.S. economy added 4.8 million jobs. The unemployment rate fell to 11.1%.Data found the total number of unemployed people fell by 3.2 million to 17.88 million. Unemployment rates decline in June for adult men (10.2%); adult women (11.2%); teenagers (23.2%); African Americans (15.4%); and Hispanics (14.5%).The number of unemployed Americans who were temporarily laid off fell by 4.8 million in June to 10.6 million. This comes after that sector of the market fell by 2.7 million in May.However, the labor force participation rate rose by just 0.7 percentage points in June to 61.5%—1.9 percentage points below pre-pandemic levels.Odeta Kushi, First American’s Deputy Chief Economist, said the labor market’s improvement will “likely stall out” if COVID-19 is not contained.She noted housing has been one of the few sectors to experience a V-shaped recovery, however, said the course of recovery is dependent on the health of the labor market.“The wages data for the last couple of months has reflected the underlying shifts in hiring for low-wage workers. The case for housing recovery is that, even if wage growth and thereby household income moderates or falls slightly, historically low mortgage rates would continue to boost house-buying power,” she said.Realtor.com’s Chief Economist Danielle Hale said the slow reopening efforts are brining workers back on the payroll and the market is “clearly moving in the right direction.” This direction will help consumers gain confidence in buying big-ticket items, such as homes.Also coming this week is an exclusive interview with Rob Dietz, Chief Economist, National Association of Homebuilders (NAHB) on DS5: Inside the Industry. Dietz will discuss how COVID-19 has impacted the residential construction industry. Related Articles The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: 4.8M Jobs Added in June Next: Tracking Foreclosures and Distressed Properties July 2, 2020 893 Views 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 Week Ahead: Nearing the Forbearance Exit 2 days ago 2020-07-02 Mike Albanesecenter_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 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / The Week Ahead: Signs of Improvement in Labor Market Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Here’s what else is happening in The Week Ahead:DS5: Inside the Industry—Rob Dietz, Chief Economist, NAHB (Monday)NAR Home Affordability Index (Thursday) The Week Ahead: Signs of Improvement in Labor Market About Author: Mike Albanese Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Update: Mortgage Delinquency Trends

first_img About Author: Phil Hall Servicers Navigate the Post-Pandemic World 2 days ago Update: Mortgage Delinquency Trends  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago An estimated 4.1 million homeowners were in active COVID-19 forbearance plans as of July 21, according to new data from Black Knight Inc. This represents 7.8% of all active mortgages.The Black Knight report also provided updates on affordability and refi trends.New forbearance plans averaged 78,000 per week during the first three weeks of July, Black Knight noted, a decline from the 81,300 weekly average one month earlier. Active forbearances dropped by 435,000 during the first week of July, followed by an aggregate 25,000 over the next two weeks.As of July 21, 1.6 million households—or, 28% of homeowners—had exited a COVID-19-related forbearance plan. Of that group, Black Knight found that 3% paid off their mortgage, 21% had their forbearance removed or expired and remained current on mortgage payments and 4% had their plan removed or expired but remained past due on their mortgage. Of the remaining loans still on active forbearance plans, 2.6 million have had the term of their plan extended, while 1.5 million are still in their initial term.Nearly 2.5 million active forbearance plans were set to expire within June and another 1.3 million were scheduled to expire in July. However, Black Knight determined that roughly 1.8 million forbearance extensions have taken place over the last four weeks while an additional 890,000 loans were removed from forbearance. The majority of the forbearance extensions covered an extra three months, which means nearly 2.2 million active forbearance plans are set to expire in September.Separately, Black Knight reported the national delinquency rate fell in June for the first time since January, with approximately 7.6% of all mortgage holders in a delinquent state. In January, that share was a record-low 3.2%. Also during June, the number of early-stage delinquencies stabilized, with 30-day delinquencies nearly back to their pre-COVID levels. However, the number of borrowers 90 or more days past due was 1.87 million, the largest volume since 2011, and Black Knight predicted that the number of 90-day delinquencies could increase into July.Additionally, Black Knight reported that last month’s record-breaking low mortgage rates contributed to creating the most affordable average-priced homes since 2016.Buying power for homebuyers increased 10% from last year, Black Knight noted, adding that shoppers can now afford roughly $32,000 more home than one year earlier while keeping their monthly payment the same.“As of mid-July, it required 19.8% of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20% down payment and a 30-year mortgage,” said Black Knight Data & Analytics President Ben Graboske. “That was more than 5% below the average of 25% from 1995-2003. This means it currently requires a $1,071 monthly payment to purchase the average-priced home, which is down 6% from the same time last year, despite the average home increasing in value by more than $12,000 during that same time period.”Graboske added that while “record levels of job losses are certainly still weighing on the housing market and broader economy, for those shopping for a home now, buying power has clearly trended up.”In six states—Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia—payment-to-income ratios are at their lowest levels in more than a quarter-century. Black Knight also noted that the nation’s 25 largest markets are seeing their strongest affordability in more than two years, while some markets areas are enjoying their strongest affordability levels in well over a decade.Homebuyers are not the only ones profiting from this environment. Black Knight determined that the historically low 30-year-rates incentivized a record 18.1 million homeowners to refinance last month. Previous: DS5: Challenges Ahead for Foreclosure Attorneys Next: Fannie and Freddie: Portfolio Update Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Affordability Forbearance refi 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. Share 1Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Affordability Forbearance refi 2020-08-03 David Wharton The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Related Articles Subscribe August 3, 2020 2,263 Views 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 The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Foreclosure, Journal, Market Studies, News Home / Daily Dose / Update: Mortgage Delinquency Trendslast_img read more

Forbearance Update: How the Trends Are Changing

first_img  Print This Post Home / Daily Dose / Forbearance Update: How the Trends Are Changing Subscribe Servicers Navigate the Post-Pandemic World 2 days ago September 9, 2020 1,690 Views Sign up for DS News Daily 2020-09-09 Christina Hughes Babb About Author: Phil Hall Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Forbearance Update: How the Trends Are Changing The Best Markets For Residential Property Investors 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago The total number of loans now in forbearance reached 7.16% of servicers’ portfolio volume for the week ending August 30, down slightly from the 7.20% level recorded one week earlier, according to the latest Mortgage Bankers Association (MBA) Forbearance and Call Volume Survey.The new survey determined that 3.6 million homeowners are now in forbearance plans. Progress continued to be made on the government-sponsored enterprise front, with the share of Fannie Mae and Freddie Mac loans in forbearance falling for the 13th consecutive week in a row to 4.80%, an 8-basis-point decline, while the forbearance share for portfolio loans and private-label securities (PLS) took a 1 basis point dip to 10.43% and the share of loans in forbearance for depository servicers tumbled 9 basis points to 7.40%.,However, Ginnie Mae loans in forbearance inched up by 4 basis points for the second consecutive week to 9.62% while the share of loans in forbearance for independent mortgage bank (IMB) servicers was unchanged at 7.41%.“The share of Ginnie Mae loans in forbearance increased again this week, as the current economic crisis continues to disproportionately impact borrowers with FHA and VA loans,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “As a result, IMB servicers, which have roughly one-third of their portfolio with Ginnie Mae, had a forbearance share that was unchanged, while depositories, which have a larger share of GSE and portfolio loans, saw a decrease.”The MBA also reported that 35.76% of total loans in forbearance are in the initial forbearance plan stage, compared to 63.29% that are in a forbearance extension. The remaining 0.94% were listed as forbearance re-entries.Total weekly forbearance requests as a percent of servicing portfolio volume was 0.09%. a scant decrease from the 0.10% of the prior week. As a percent of servicing portfolio volume, forbearance-related calls remained unchanged at 7.2% and the average speed to answer increased from 2.2 minutes to 2.4 minutes.Fratantoni added that the current situation is not expected to dramatically change in the near future.“The labor market continued to heal in August, with strong job growth and a large decline in the unemployment rate,” he observed. “However, the economy still faces an uphill climb and remains far away from full employment. High unemployment, and jobless claims consistently around 1 million a week, continue to cause financial strain for some borrowers, and especially for those who work in industries hardest hit by the pandemic.” 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. Share 1Save Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News Previous: Expanding Diversity Into the C-Suite Next: State-By-State, the Desire to Relocate Demand Propels Home Prices Upward 2 days agolast_img read more

Factors That Defined Housing in 2020

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Factors That Defined Housing in 2020 Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post 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 February 25, 2021 997 Views 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. in Daily Dose, Featured, Market Studies, News Many of the factors that defined 2020’s state of the housing market—low mortgage rates, dwindling inventory, and a refinancing frenzy, to name a few—have been exhaustively reported. LendingTree’s VP and Chief Economist Tendayi Kapfidze dug a little deeper to explore other mortgage and housing trends including what kind of borrowers got home financing, how mortgages were structured, and how Americans managed debt.The full report is on LendingTree.com, but here a few things stand out.One of the first topics Kapfidze touches upon is homeownership and equity. He points out that Americans have amassed $20.4 trillion in home equity, adding that equity isn’t necessarily equal.”Although Americans have a staggering amount of home equity, real estate wealth is becoming increasingly concentrated in the hands of fewer homeowners as overall homeownership rates fall.”He goes on to mention the mildly surprising fact that fewer Americans own homes today than in 2004.”In 2004, 69% of all Americans owned homes. Today, that number has fallen to 65.8%.”The economist says mortgage origination levels have recovered from their housing crisis lows.”In 2008, financial institutions originated just $1.4 trillion in new mortgages. However, by 2016, new first-lien mortgages topped $2 trillion. Though that number fell in subsequent years, it rose to $2.38 trillion in 2019 and continued to rise to $2.49 trillion through the third quarter of 2020.”From where are borrowers securing the most loans? Kapfidze says that in 2010, three banks (Wells Fargo, Bank of America, and Chase) originated 56% of all mortgages.”Since 2010, though, the number of mortgages originated by nonbanks has increased; nonbanks, with more lenient lending standards now originate the majority of mortgage loans,” he said.The role of federally controlled lenders has changed, he notes.”As private securitization firms exited the mortgage landscape, programs from the Federal Housing Administration (FHA) and U.S. Department of Veterans Affairs (VA) have filled in some of the void,” Kapfidze said. “FHA and VA loans can help qualified borrowers get loans despite having smaller down payments or lower incomes and credit scores. FHA and VA loans accounted for 17.4% of all loans issued in Q3 2020, down from 19.5% compared to the same period in 2019.”What sort of credit it takes to secure a loan has been a moving target of sorts over the past decade. Today, the pandemic might be contributing to tightening standards.”As of November 2020, the median FICO Score for a newly originated mortgage was 786. Though the credit score needed to be approved for a mortgage varies, this high median score can be attributed in large part to tightening lending standards in the wake of the COVID-19 pandemic,” Kapfidze said.The pandemic among many things has impacted delinquency rates, which were 2.8% in Q3 2020, well below the 2010 peak of 11.5%.”These low rates in the face of recession can be attributed to a variety of factors, including an uptick of mortgages in forbearance as well additional unemployment benefits supplied by the government.”In Kapfidze’s words, here is a summary of the study’s further findings:Total mortgage debt as of Q3 2020: $10.8 trillionAverage mortgage balance as of April 2020: $151,686Average new mortgage balance as of 2019: $285,434Homeownership rate (share of owner-occupied homes) as of Q4 2020: 67%Homeowners with a mortgage as of 2019: 63%Median credit score for a new mortgage as of Q3 2020: 786Average down payment made as of Q3 2020: $15,023Mortgages originated in 2019: $2.38 trillionShare of purchase mortgages originated by nonbank lenders as of Q3 2020: 69%Share of refinance loans originated by nonbanks as of Q3 2020: 73%Share of mortgages with a delinquency rate of 30 days or more as of Q3 2020: 2.81% Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Factors That Defined Housing in 2020 Previous: Market Still at Risk of Future ‘Zombie’ Property Wave Next: Number of Hispanic Homeowners Expected to Soar by 2040 2021-02-25 Christina Hughes Babb Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Share 1Save About Author: Christina Hughes Babb 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 Subscribelast_img read more

Are Smaller Homes the Cure to Inventory Concerns?

first_img ICON Jason Ballard Michael Neal Urban Institute 2021-05-12 Eric C. Peck Are Smaller Homes the Cure to Inventory Concerns? Demand Propels Home Prices Upward 2 days ago Tagged with: ICON Jason Ballard Michael Neal Urban Institute in Daily Dose, Featured, Journal, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Home / Daily Dose / Are Smaller Homes the Cure to Inventory Concerns? 17 days ago 555 Views Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days agocenter_img Subscribe About Author: Eric C. Peck In the blog “Recent Growth of Newly Built Smaller Homes Could Ease the Housing Shortage, but Higher Costs Hamper Affordability” published by the Urban Institute, author Michael Neal notes that should the current pace of home sales continues (6.01 million homes in March) and with the months’ supply of existing homes near its record low (2.1 months in March), the existing for-sale inventory would be exhausted around Memorial Day if no additional inventory is added.With the recent hurdles noted in terms of the rising cost of lumber tacking on $35,000-plus to the price of a newly-constructed home, and the price of government red tape on the rise, builders continue to face resource cost burdens that make it difficult to produce affordable homes.“Recent new home sales suggest that building costs can counteract the expected affordability improvements that arise from more new small homes being completed and sold,” said Neal in the blog. “For the housing market to ensure ample affordable housing options remain available, policymakers can seek to reduce production costs by promoting alternative building methods, such as modular or panelized housing.”With the average size of a new home decreasing due to a small but growing share of entry-level homes under 1,800-square feet, sales of smaller new homes have increased 76% since 2015, compared to a 36% increase in new home sales overall. In response, these “starter” homes saw their share of all new home sales increase from 16% to 21%, less than its share before the housing bust.3D printing has been found to reduce the need for human labor at a time when home builders are struggling to find skilled workers to meeting housing demand. Many construction workers left the trades after the housing-fueled financial crisis more than a decade ago, and fewer young people are entering the field.Jason Ballard, CEO and Co-Founder of ICON, said its 3D printing system can do the work of 10 to 20 workers in five or six different trades, working up to 24 hours a day, saving developers time and money. ICON made news in 2018 by completing the first permitted 3D printed home in the U.S., claiming the home had been built in just a day.Despite speed and materials, to increase the affordability of newly constructed homes, policymakers can provide incentives to builders to build smaller homes and to reduce production costs.“Even if new building technologies were more heavily used, the housing shortage would not disappear,” said Neal. “High land costs, regulatory constraints on permitting and building design, and financing and delivery challenges may keep new home prices high. But the building of new smaller homes and the price convergence offers the prospect that new homes could provide some affordable supply and could ease the shortage.”Click here to read “Recent Growth of Newly Built Smaller Homes Could Ease the Housing Shortage, but Higher Costs Hamper Affordability.” Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Is Chapter 7 Bankruptcy Broken? Next: Mr. Cooper Names New Chief Diversity Officer  Print This Post Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com. Share 2Save Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more