Month: May 2021

FHFA Adopts New Plan Under Director Watt; Won’t Reduce GSE Market Share

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first_img FHFA Adopts New Plan Under Director Watt; Won’t Reduce GSE Market Share in Daily Dose, Featured, Government, Headlines, News Previous: DS News Webcast: Wednesday 5/14/2014 Next: Survey: Americans Don’t Know How Credit Scores are Calculated Servicers Navigate the Post-Pandemic World 2 days ago Conservatorship Fannie Mae FHFA Freddie Mac Mel Watt 2014-05-14 Krista Franks Brock In a speaking engagement at the Brookings Institution, Federal Housing Finance Agency (FHFA) Director Melvin L. Watt spoke about his new 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac, highlighting a few major changes to the plan. Notably Watt’s plan removes any intention to reduce the GSEs’ presence in the market, a central part of former Acting Director Edward DeMarco’s strategic plan.Instead of reducing the agencies’ market footprint as specified by DeMarco, Watt aims to reduce the risk the agencies pose to taxpayers.”This approach allows us to meet our mandates of upholding safety and soundness and ensuring broad market liquidity,” Watt said before his audience at the Brookings Institution.The goal of reducing risk will be achieved through credit risk transfers at both Fannie Mae and Freddie Mac, Watt explained. The GSEs will triple their credit risk transfers from last year with a stated goal of transferring $90 billion this year.FHFA will also reduce taxpayer risk by requiring the GSEs to reduce their retained portfolios and by encouraging private capital in the mortgage market, Watt said.While Watt will keep alive DeMarco’s goal of creating a securitization infrastructure that can be adapted for the future secondary market, he explained his main objective under this stated goal will be to create a Common Securitization Platform “that can undertake Fannie Mae and Freddie Mac’s current securitization operations.”Watt explained “pursuing too many objectives all at the same time would be problematic,” so he will focus on a system that accommodates the GSEs’ current platforms.Another major objective for the FHFA this year is to create a common security for Fannie and Freddie, which Watt said, will increase market liquidity.Beyond creating the Common Securitization Platform and reducing taxpayer risk, Watt’s major focus will be on maintaining the safety and soundness of Fannie Mae and Freddie Mac.Watt announced he will not lower loan limits for the GSEs, and he will make changes to representation and warranty standards. The standards will now allow for two delinquent payments over the first 36 months of a loan, and cancellation of mortgage insurance is no longer cause for automatic repurchase.Missing from Watt’s strategic plan was any mention of housing finance reform, but Watt addressed this omission in his speech.”I am well aware, and regularly express my belief, that conservatorship should never be viewed as permanent or as a desirable end state and that housing finance reform is necessary,” Watt said. “However, Congress and the Administration have the important job of deciding on housing finance reform legislation, not FHFA.” Home / Daily Dose / FHFA Adopts New Plan Under Director Watt; Won’t Reduce GSE Market Share Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Tagged with: Conservatorship Fannie Mae FHFA Freddie Mac Mel Watt 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. About Author: Krista Franks Brockcenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles May 14, 2014 683 Views Sign up for DS News Daily 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  Print This Post The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

Strong Equity Sales and Investments Drive Solid Q1 for Morgan Stanley

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first_img Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Earnings Statements Morgan Stanley Profits 2015-04-21 Scott Morgan Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Scott Morgan Morgan Stanley closed a solid first quarter driven by strong equity sales and investments, according to a financial statement the company released Monday.The financial firm reported $9.9 billion in net revenues overall in Q1, which is up from the $9 billion Morgan Stanley posted a year ago. Income from continuing operations amounted to $2.4 billion, compared to $1.5 billion for the same period a year ago.The firm credited solid investment in institutional securities and equity sales as major factors in its Q1 performance. Net revenues from institutional securities (excluding debt value adjustment) were $5.3 billion. Equity sales and trading net revenues were $2.3 billion, up from $1.7 billion a year ago. The company said this was due to “strong performance across products and regions on higher levels of client activity.”Net revenues from the firm’s wealth management sector were $3.8 billion overall, up from $3.6 billion a year ago. The firm also reported net revenues of $669 million with assets under management of $406 billion. This was down from $752 million the prior year, an aftereffect of lower gains on investments in the merchant banking and real estate investing sectors, the report stated. Total assets under Morgan Stanley’s control in the quarter were $2 trillion.The firm also repurchased approximately 7 million shares‒‒worth about $250 million‒‒of its common stock in the quarter. According to the statement, Morgan Stanley stock leapt from 74 cents per share to $1.18 between the first quarters of 2014 and 2015. The firm plans to repurchase as much as $3.1 billion of common stock through the end of Q2 2016.Morgan Stanley also reported a net discrete tax benefit of $564 million that it attributed to the repatriation of non-U.S. earnings “at a cost lower than originally estimated due to an internal restructuring to simplify its legal entity organization in the U.K.”James Gorman, chairman and CEO of Morgan Stanley, called Q1 “our strongest quarter in many years, with improved performance across most areas of the firm.” Share Save Strong Equity Sales and Investments Drive Solid Q1 for Morgan Stanley Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Earnings Statements Morgan Stanley Profits Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He’s been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing. Home / Daily Dose / Strong Equity Sales and Investments Drive Solid Q1 for Morgan Stanley in Daily Dose, Featured, News Related Articles The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Composite Default Index Tumbles, Driven by Decline in Mortgage Default Rates Next: CFPB, FTC Penalize Green Tree For Alleged Servicing Violations Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago April 21, 2015 1,177 Views Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Subscribelast_img read more

Home Sales Up Year-Over-Year; Reach Highest Level Since 2008

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first_img The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home Sales Up Year-Over-Year; Reach Highest Level Since 2008 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Subscribe Home Sales Housing Inventory Housing Market Housing Supply RE/MAX 2015-08-18 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily About Author: Xhevrije West August 18, 2015 1,752 Views  Print This Post Demand Propels Home Prices Upward 2 days agocenter_img in Daily Dose, Featured, Market Studies, News Home / Daily Dose / Home Sales Up Year-Over-Year; Reach Highest Level Since 2008 Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Drop in REO Sales is Driving Continued Decline in Cash Sales Share Next: Fannie Mae Completes Third Credit Insurance Risk Transfer Transaction The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Residential home sales fell in July, but still managed to hover over last July’s levels and reach new heights not seen since 2008, according to the RE/MAX July 2015 National Housing Report released Tuesday.According to RE/MAX, home sales over the last six months, including July, have each recorded the highest number of sales in their respective months since the RE/MAX National Housing Report began in 2008. The average number of home sales were 3.2 percent lower than in June in the 53 metro areas surveyed, but 11.3 percent higher than sales in July 2014. Fifty-two of 53 metro areas reported higher sales on a year-over-year basis and 31 areas experienced double-digit increases.On a year-over-year basis, the increase in sales for each of the first seven months of 2015 was 5.9 percent. “Even though home sales were slightly lower in July than in June, the numbers look very good and remain well above the levels we saw last summer,” said Dave Liniger, RE/MAX CEO, chairman of the Board and co-founder. “Credit accessibility does appear to be loosening up, bringing homeownership back within the reach of many more Americans. If the economy moves forward and wage growth improves, potential homebuyers and sellers should feel more confident about entering the market.”The report also found that the median sales price of all homes sold in July was $215,000, 4.3 percent lower than the June 2015 price, but 6.4 percent above the price seen last July. On a year-over-year basis, home prices increased 7.7 percent for the first seven months of 2015.Home prices have now risen for 42 consecutive months.States with the highest price increases include San Francisco, California (12.3 percent); Miami, Florida (12.2 percent); Boise, Indiana (12.2 percent); Manchester, New Hampshire (12.1 percent); Denver, Colorado (11.4 percent); and Las Vegas, Nevada (10.5 percent)”With the average inventory this year remaining about 11 percent below a year ago, home prices continue to rise,” the report said. “Among the 53 metro areas surveyed in July, 47 reported higher prices than one year ago, with 6 rising by double-digit percentages.”Inventory levels fell 1.0 percent in July, following three months of month-over-month improvements in homes for sales.  On a year-over-year basis, inventory in July was 11.9 percent lower than the previous year. At the current rate of home sales, the resulting months supply of inventory in July still favors sellers at 3.9 on a scale where 6.0 months indicates a market balanced equally between buyers and sellers.Click here to view the complete RE/MAX July 2015 National Housing Report. Related Articles The Best Markets For Residential Property Investors 2 days ago Tagged with: Home Sales Housing Inventory Housing Market Housing Supply RE/MAX Share Save Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Wells Fargo Faces New Challenges From Regulators

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first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Home / Daily Dose / Wells Fargo Faces New Challenges From Regulators Wells Fargo Faces New Challenges From Regulators Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Federal Reserve Living Wills 2016-12-13 Kendall Baer The Best Markets For Residential Property Investors 2 days ago Tagged with: Federal Reserve Living Wills The Best Markets For Residential Property Investors 2 days ago Previous: National Solutions on a State Level Next: Leadership Group Formed to Address Veterans’ Housing Concerns Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News Share Savecenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago The verdict is in. On Tuesday, The FDIC and the Federal Reserve Board announced their determination for the revised “living wills” of five financial institutions. Unfortunately for Wells Fargo their plan was rejected for the second time. The agencies stated that because of this shortcoming, Wells Fargo will be subject to restrictions on certain activities until the deficiencies are remedied.In April of this year, the agencies jointly determined that each of the 2015 resolution plans, or “living wills,” of Bank of America, Bank of New York Mellon, JPMorgan Chase, State Street, and Wells Fargo were not credible or would not facilitate an orderly resolution under the U.S. Bankruptcy Code. As such, the agencies issued joint letters to these firms detailing the deficiencies in their plans and the actions the firms must take to address them, basically saying the banks were required to prove to the government they are not “too big to fail.”In Wells Fargo’s plan, the institution stated that it believed the three deficiencies were remediated as required by the 2015 Plan Feedback Letter. Wells Fargo also wrote that it continues to invest in and support projects to improve its resolvability and will continue to incorporate resolvability considerations into its decision-making processes.Specifically, the agencies determined that Wells Fargo fell short in the categories of “legal entity rationalization” and “shared services” but did adequately remedy its deficiency in the “governance” category.“Wells Fargo is committed to strengthening and enhancing its resolution planning processes, and we will continue to work closely with the agencies to better understand their concerns so that we can bring our resolution planning processes in line with their expectations,” said Wells Fargo in a statement. “While we are disappointed with the determination issued by the agencies, we continue to be dedicated to sound resolution planning and preparedness. We believe we will be able to address the concerns raised today in the March 2017 revised submission.”The Federal Reserve Board has released subsequent feedback letters issued to the firms, which describes the steps the firms have taken to address the deficiencies outlined in the April 2016 letters.To view the full report and feedback letters, click HERE. Related Articles Demand Propels Home Prices Upward 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago December 13, 2016 1,111 Views Servicers Navigate the Post-Pandemic World 2 days ago About Author: Kendall Baer Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Subscribelast_img read more

Housing Industry Weighs in on Tax Reform Bill

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first_img December 20, 2017 2,366 Views  Print This Post in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Housing Industry Weighs in on Tax Reform Bill The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Nicole Casperson Previous: Tax Reform Bill Headed Back to House for Revote Next: Foreclosures, Short Sales Down Once Again Related Articles Share Save 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] Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Housing Industry Weighs in on Tax Reform Bill Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago GOP HOUSING mortgage Senate Tax Reform 2017-12-20 Nicole Casperson Tagged with: GOP HOUSING mortgage Senate Tax Reform Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago On Wednesday, Republicans passed their finalized tax reform —which has been pushed through Congress over the last month in a rush to have the bill hit President Trump’s desk before Christmas.The Senate approved the bill 51-48 early Wednesday morning. On Tuesday, the Republican bill was approved on a 227-203 vote in the House, with no Democrats supporting it. Twelve Republicans also voted against the measure.However, the House had to revote Wednesday due to the Senate having to strip out some elements of the bill—passing the House once again 224-201 after a revote Wednesday afternoon.In response to the passing of the biggest tax code overhaul in years, U.S. Treasury Secretary Steven Mnuchin released this statement:“Today Congress delivered tax cuts to middle-income families and a level playing field for American businesses. I congratulate the House and Senate for passing this historic legislation, which will usher in higher wages and more jobs for American workers, a fairer system for all, and greater economic growth that will lead to a brighter and more secure future for our country. Thanks to the leadership of President Trump and our colleagues in Congress, hardworking Americans will keep more of their hard-earned money in 2018 and beyond.”In agreement of the bill, U.S. Rep. Jeb Hensarling (R-Texas) said he fully believes the Tax Cuts and Jobs Act will deliver sustained strong economic growth, but he did express his apprehensions of the bill that the House and Senate finally agreed on.”Although the Tax Cuts and Jobs Act failed to fully repeal the Death Tax and Alternative Minimum Tax and did not achieve the level of simplicity or flatness I had worked for, it remains a great and historic pro-growth achievement and I am proud to support it,” Hensarling said.Doug Duncan, Chief Economist at Fannie Mae related the new legislation to the Fed’s recent rate hike.“The Summary of Economic Projections revealed an upgrade of growth expectations for 2018 and 2019 but no change in the expected pace of rate increases or the so-called neutral rate,” said Duncan. “It appears there is not much economic boost anticipated by the Fed from tax legislation that passed December 20. While final details were not known at the time of the Fed meeting, the outline was quite similar to the final legislation.”Chairman of the National Association of Home Builders (NAHB) Granger MacDonald expressed his support of the legislation, despite NAHB’s previously reported concerns toward the bills initial announcement.”NAHB fully supports the final conference report on tax reform legislation and commends the work of House-Senate conferees,” MacDonald said. “This comprehensive overhaul of the nation’s tax code will help middle-class families, maintain the nation’s commitment to affordable housing and ensure that small businesses are treated fairly relative to large corporations. Lower tax rates and a fair tax code will spur economic growth and increase competitiveness, and that is good for housing. We urge the House and Senate to move quickly to pass this legislation.”After the passing on the bill by the Senate and the House (the first time) David H. Stevens, President and CEO of the MBA, offered the following statement lauding the inclusion of important real estate provisions in the conference report for HR 1.”I want to thank House and Senate leadership and the members of the conference committee for including key real estate and housing provisions in the final tax bill. Specifically, we are grateful for the amendment to Section 13221 of the original Senate-passed bill offered by Senator Mike Rounds, to create an exception for any item of gross income in connection to a mortgage servicing contract.”National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger released the following statement regarding H.R. 1.”NAFCU and our member credit unions sincerely appreciate the willingness of the Trump administration, Treasury Secretary [Steven] Mnuchin, Chairman [Orrin] Hatch, Chairman [Kevin] Brady and members of Congress to meet with us and hear our concerns throughout this process,” Berger said. “With the industry’s tax exemption untouched, credit unions will be able to continue serving their communities and remain a key player in the financial services arena.”However, some of the reactions were in major opposition. According to Portland Business Journal, Oregon Gov. Kate Brown said she is “absolutely appalled.””This massive tax deal gives big corporations and the wealthy elite a break while adding over a trillion dollars to the national debt that our kids will have to pay,” said Brown.Additionally, Daniel Hauser of the Oregon Center for Public Policy expressed a similar view.”Today’s tax vote in Congress makes one thing absolutely clear: a majority in Congress place the interests of corporations and the rich ahead of ordinary folks and the nation,” Hauser said. “The travesty that is the GOP tax plan is well-documented. It showers corporations and the rich with tax cuts while offering working families small benefits.”Finally fulfilling a legislative priority of a GOP-led Congress, the finalized tax reform could go down in history as the most substantial overhaul of the American tax code since the Regan Administration—only time will tell how the new legislation will stir the housing industry.To view the full agreement, click here.Here’s a look at what the changes mean for homeowners, buyers, and sellers:Downsized mortgage interest rate deduction: New homebuyers would now only be able to deduct interest on the first $750,000 of mortgage debt on a newly-purchased home—down from the current $1 million thresholds, but higher than the $500,000 limit the House proposed in its tax overhaul in November. While the deduction has helped make homebuying more affordable for some homeowners, buyers in some cities face much higher price tags.Less reason to itemize: Homeowners must itemize their taxes if they want to claim the mortgage interest deduction. But since the final bill calls for nearly doubling the standard deduction, far fewer Americans are expected to itemize.Limit on property tax deduction: Taxpayers will no longer be able to fully deduct state and local property taxes plus income or sales taxes. Instead, the legislation allows individuals to deduct up to $10,000 in state and local income and property taxes or state and local property and sales taxes. That means homeowners living in high-tax states like New York, California, and New Jersey could see an increase in what they owe.Tax break stays for home sellers: Both the House and Senate bills originally wanted to scale back a tax break for homeowners when they sell their home for profit. Taxpayers will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains when they sell their primary home, as long as they’ve lived there for two of the past five years. Earlier tax reform proposals would have increased the live-in requirement to five out of the last eight years. The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Which U.S. Cities are Embracing Reverse Mortgages?

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first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save About Author: David Wharton The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Headlines, Journal, Market Studies, News Home / Daily Dose / Which U.S. Cities are Embracing Reverse Mortgages? Tagged with: HECM Home Equity Conversion Mortgages mortgage Reverse Mortgages Sign up for DS News Daily Previous: Texas Communities to Receive $1 Billion from FEMA Next: How Cryptocurrency Can Help Fund Affordable Housing HECM Home Equity Conversion Mortgages mortgage Reverse Mortgages 2018-02-19 David Wharton Which U.S. Cities are Embracing Reverse Mortgages? The Best Markets For Residential Property Investors 2 days ago Subscribe February 19, 2018 3,718 Views 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 Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post California cities dominate the top 10 U.S. cities where reverse mortgages are most often used, according to a new study by LendingTree. California cities accounted for four of the top 10 slots in LendingTree’s report, but none of them managed to claim the top spot—that honor went to Virginia Beach, Virginia.To discovery which parts of the country were most fond of reverse mortgages, LendingTree looked at five years’ worth of data (2012 – 2017) drawn from the Federal Housing Authority’s Home Equity Conversion Mortgage (HECM) program. According to LendingTree, they then “compared the number of HECM to the number of homeowners more than 60 years old and calculated a ratio of how many reverse mortgages originated per 1,000 homeowners in the 100 largest cities. Eligibility for the HECM reverse mortgage begins at age 62.”LendingTree’s research determined that HECMs originated in the 100 studied cities at an average rate of 7.1 loans per 1,000 homeowners over the age of 60. The top city, Virginia Beach, boasted a rate of 13.8 loans per 1,000 homeowners over the age of 60. On the other end of the spectrum, the lowest-rated city, Pittsfield, Massachusetts, came in at a considerably lower rate—0.3 loans per 1,000 over-60 homeowners.After Virginia Beach, the rest of the top 10 cities for reverse mortgage volume included Denver, Colorado; Riverside, California; Sacramento, California; Reno, Nevada; Las Vegas, Nevada; Austin, Texas; San Francisco, California; El Paso, Texas; and San Diego, California.As LendingTree Chief Economist Tendayi Kapfidze explains, “Prices in the four California cities … increased 9 percent in the third quarter in 2017 from the same time last year, well above the national average of 6 percent. Over the years, sustained appreciation has left these homeowners with ample equity to access in retirement years.”The U.S. cities where older Americans are embracing reverse mortgages the least include Pittsfield, Massachusetts; Wichita Falls, Texas; Toledo, Ohio; Detroit, Michigan; Youngstown, Ohio; Madison, Wisconsin; Providence, Rhode Island; Grand Rapids, Michigan; Cleveland, Ohio; and Milwaukee, Wisconsin.“These Rust Belt locales have not experienced sustained periods of robust home price appreciation and homeowners may not have accumulated a level of home equity to take out reverse mortgages,” Kapfidze said. “The colder weather in these states could also mean homeowners are more likely to move to warmer climates for retirement, whereas in a state like California, homeowners who have accumulated equity may be inclined to stay for the quality of life.”You can read the full LendingTree report by clicking here. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

500 Days in the Housing Industry

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first_img in Daily Dose, Featured, Government, News Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / 500 Days in the Housing Industry The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Related Articles Servicers Navigate the Post-Pandemic World 2 days ago 500 Days in the Housing Industry Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Tagged with: Banks Ben Carson Brian Montgomery Dodd-Frank Government Jerome Powell Lenders Mick Mulvaney mortgage President Trump Volcker Rule Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Radhika Ojha June 7, 2018 1,530 Views Banks Ben Carson Brian Montgomery Dodd-Frank Government Jerome Powell Lenders Mick Mulvaney mortgage President Trump Volcker Rule 2018-06-07 Radhika Ojha The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Trump administration recently celebrated 500 days in office. How has the landscape of the housing industry changed during that time? In this piece, DS News will walk you through the key legislation and nominations that have impacted the industry since January 2017.The Big PictureThe tax reform bill, perhaps the administration’s key piece of legislation passed in these 500 days, was signed into law in December 2017. While the bill had major implications for many industries, several key provisions impacted the housing industry. From downsized mortgage interest rate reduction and limits on property tax deductions to tax break stays for homesellers, the $1.4 trillion tax cut bill impacted homeowners, buyers, and sellers.While the fall in unemployment is part of a larger revival in jobs predating the current administration, the latest numbers from the Bureau of Labor Statistics indicated that the unemployment rate had fallen to 3.8 percent by the end of April. For the housing industry, which continues its struggle with the supply side, the latest job numbers also meant an increase in construction labor. The latest jobs report indicated that jobs in construction had risen by 286,000 over the past 12 months. When looking at the quality of life and housing across the country, OECD’s Better Life Index indicated that the U.S. ranked among the top countries in housing, income, and wealth, roughly at the same rank as when President Trump was sworn into office.A Look at LegislationIn May, the Dodd-Frank Reform bill—known officially as the Economic Growth, Regulatory Relief, and Consumer Protection Act—was signed into law by President Trump. The bill seeks to evolve and streamline regulations put in place by the 2010 Dodd-Frank Act and was passed by the House on May 22, by a vote of 258-159. “This is a moment years in the making, and I thank my colleagues in the Senate and the House of Representatives for their partnership and contributions to this effort over the years,” said Sen. Mike Crapo (R-ID), Chairman of the Senate Banking Committee. “This step toward right-sizing regulation will allow local banks and credit unions to focus more on lending, in turn propelling economic growth and creating jobs on Main Street and in our communities. This is an important moment for small financial institutions, small businesses, and families across America.”While the Dodd-Frank reform bill was still being discussed, the House of Representatives passed a new bill in April that would streamline the Volcker Rule. Implemented as part of the larger Dodd-Frank Wall Street Reform and Consumer Protection Act, the Volcker Rule limits the types of speculative investments banks can participate in, as a way to try and prevent some of the factors that contributed to the 2008 financial crisis. This new House bill, passed with a vote of 300-104, would make the Federal Reserve the sole regulator for Volcker Rule compliance. At the time, some proponents of the Volcker rule called for the bill to be rolled into the larger Dodd-Frank reform bill. However, the bill remains a separate piece of legislation and moved forward recently after the SEC voted on the overhaul. The SEC was the last of the five financial agencies required to sign off on the changes. According to Bloomberg, the changes are being viewed as a significant win for banks that have “long argued the original rule was overly complex and costly to comply with.”Noms, Noms, NomsIn the 500 days since the administration took office, many of President Trump’s nominees have been appointed to key positions. From the Fed Chairman to the most recent appointment of the head of the FHA (a position that had been vacant for the past four years), the nominations and appointments made by this administration are set to have a far-reaching effect on the housing industry.Most recently, in May, Brian Montgomery, who had been nominated by the President for the position of Assistant Secretary for Housing-Federal Housing Commissioner, U.S. Department of Housing and Urban Development in November, was approved by the Senate by a vote of 74-33. “I’m honored to have the opportunity to serve with Secretary Carson and the team at HUD to further equal access to affordable rental housing and homeownership opportunities and seek solutions to restore vitality to the housing market,” Montgomery said in a statement. Montgomery, an industry veteran, served in the Executive Office of the President during the Administration of President George W. Bush before transitioning to his role as Assistant Secretary at HUD and FHA Commissioner under Presidents Bush and Obama. In recent years, he has served as Vice Chairman at The Collingwood Group, LLC, a Washington DC-based real estate finance consulting firm.In November 2017, President Trump nominated Jerome Powell for the position of Fed Chair “He’s strong, he’s committed, and he’s smart,” President Trump said during the official announcement. “And if he is confirmed by the Senate he will put his considerable talents and experience to work, leading our nation’s central independent bank, which has the critical responsibility to set monetary policy and our banking system as a whole.” Powell won the Senate over and was appointed to this position in early 2018. During his Congressional testimony in February after being confirmed, he backed further interest rate hikes.Around the same time, the President nominated Mick Mulvaney, the Federal Budget Director to the position of Acting Director of the Consumer Financial Protection Bureau (CFPB). While the decision was a controversial one at that time, Mulvaney has brought in a slew of changes at the consumer watchdog. From requesting for $0 in funding for the CFPB in the second quarter to announcing that the Bureau had to be more “transparent and accountable,” Mulvaney has made quick changes to the way the Bureau works.In March 2017, Dr. Ben Carson was appointed as HUD secretary after a final Senate vote of 58-41.  “I am immensely grateful and deeply humbled to take on such an important role in service to the American people,” said Secretary Carson had said upon his appointment. Since then, despite the controversies, under his leadership, HUD has taken on several important initiatives such as announcing a major disbursement of funds to help communities still recovering from the 2017 natural disasters, partnering with the Department of Justice to end sexual assault in housing, and most recently commemorating 50 years of the Fair Housing Act. Previous: MBA Names New President & CEO: Industry Reaction Next: CFPB vs. PHH—An Unexpected Conclusionlast_img read more

Quarles: “Supervisory Resources Are Not Limitless”

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first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Enhancing Digital Mortgage Efficiency Next: And Your Home Can Fetch … November 14, 2018 2,166 Views Share Save in Daily Dose, Featured, Government, News Banks Dodd-Frank Federal Reserve Financial Services Committee House Liquidity 2018-11-14 Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago Improving regulatory transparency and the Fed’s progress in making the post-crisis regulatory framework simpler and more efficient were the two main topics of discussion during The Federal Reserve Vice Chairman for Supervision, Randal Quarles’, semiannual testimony to the House Financial Services Committee on Wednesday.Opening the proceedings, Hensarling said that the Dodd-Frank Act had dramatically increased the Fed’s powers “way beyond its traditional monetary policy responsibilities.” “Through so-called “heightened prudential standards,” the Fed can functionally now control the largest financial institutions in our economy, which is most disconcerting,” Hensarling said. “Increased capital and liquidity standards, as long as they are not counter-productive or duplicative, add to stability; regulatory complexity and micro-management do not. If not properly tailored and calibrated, both hinder economic growth.”   However, during his testimony, Quarles said that the Fed was making progress in making the post-crisis “regulatory framework simpler and more efficient.”Outlining the Fed’s initiatives, Quarles said, “I am mindful that this semiannual testimony—like my position as Vice Chairman for Supervision—is grounded in Congress’s efforts to strengthen and improve the nation’s regulatory framework following the financial crisis. “The motivations are clear: supervisory resources are not limitless, and supervision is not costless, either to the public or to supervised institutions. Activities and firms that pose the greatest risk should receive the most scrutiny, and where the risk is lower, the regulatory burden should be lower as well,” Quarles said.He pointed out that this principal had also guided the Fed’s implementation of the Dodd-Frank modifications or the Economic Growth, Regulatory Relief, and Consumer Protection Act  (EGRRCPA). He said that the Fed had already expanded the eligibility of community banking firms for the Small Bank Holding Company Policy Statement, and for longer, 18-month examination cycles; given bank holding companies below $100 billion in assets immediate relief from supervisory assessments, stress testing requirements, and some additional Dodd-Frank Act prudential measures; and implemented changes to liquidity regulation of municipal securities and capital regulation of high-volatility commercial real estate exposures.Speaking about the improvements in the regulatory framework that the Fed had made, Quarles told the committee that tailoring regulation and supervision to risk was a programmatic goal of the Federal Reserve policy and had been so for more than two decades. He told the committee that the Fed had taken a number of steps to further increase transparency and provide more information about its supervisory activity to the institutions it regulated as well as the general public.Giving the example of its recent improvising of supervisory rating systems for large financial institutions, he said that The new rating system would “better align ratings for these firms with the supervisory feedback they receive and will focus firms on the capital, liquidity, and governance issues most likely to affect safety and soundness.”Quarles told the committee that the Fed would make final a set of measures to increase visibility into the Board’s supervisory stress testing program. “The enhanced disclosures will include more granular descriptions of our models; more information about the design of our scenarios; and more detail about the outcomes we project, including a range of loss rates for loans held by firms subject to the Comprehensive Capital Analysis and Review,” Quarles explained. Giving a report on the safety and soundness of the U.S. Banking System, he said that the banking sector remained in strong condition and was in line with the strong performance of the U.S. economy, with “lending growth, fewer nonperforming loans, and strong overall profitability.”“Large institutions are well capitalized and liquid, and their capital planning and liquidity risk-management processes are improving. Ninety-nine percent of regional and community banks are currently well capitalized, and supervisory recommendations made to smaller firms during the financial crisis have largely been closed,” Quarles said. Starting the proceedings by acknowledging that he would be retiring as Chairman of the House Financial Services Committee soon, Jeb Hensarling, Chairman of the Committee congratulated the Democrats on their midterm win and ensured an efficient and peaceful transfer of power. “I don’t know who will chair the committee, although I have a pretty good idea,” he said in a clear indication towards Ranking Member Maxine Waters who is most likely to succeed him as the Chairperson.Before his opening statement, Hensarling acknowledged Waters’ longtime participation in the House Financial Committee. “I certainly would congratulate her on her accomplishment and congratulate her on all the times we have been able to work on a bipartisan basis,” he said.Thanking Hensarling for his offer to be of assistance in the transition, Waters, however, said that while it was thought that “I would chair this committee we haven’t gone through our formal process as yet. And I welcome and appreciate the opportunity to certainly have the support from my colleagues on this side of the aisle to chair this committee and I look forward to working with you in any and every way that I can,” she said.To view, the complete testimony click here.  Print This Post The Best Markets For Residential Property Investors 2 days agocenter_img Tagged with: Banks Dodd-Frank Federal Reserve Financial Services Committee House Liquidity Quarles: “Supervisory Resources Are Not Limitless” About Author: Radhika Ojha Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Quarles: “Supervisory Resources Are Not Limitless” Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

The Far-Reaching Impact of Natural Disasters on Housing

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first_img Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily in Daily Dose, Featured, Foreclosure, Market Studies, News, Servicing December 11, 2018 4,917 Views Related Articles Carr Fire CoreLogic Frank Martell Frank Nothaft hurricane florence mortgage Natural Disasters Serious Delinquency 2018-12-11 Donna Joseph Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Far-Reaching Impact of Natural Disasters on Housing About Author: Donna Joseph Servicers Navigate the Post-Pandemic World 2 days ago Share Save Previous: The Benefits of Homeownership Next: The 2019 Housing Marketcenter_img Subscribe Home / Daily Dose / The Far-Reaching Impact of Natural Disasters on Housing  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Carr Fire CoreLogic Frank Martell Frank Nothaft hurricane florence mortgage Natural Disasters Serious Delinquency Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago From hurricanes to wildfires over the past year, the impact of natural disasters on serious delinquency rates is evident in CoreLogic’s Loan Performance Insights report, released Tuesday. Delinquency rates in disaster-affected areasFrank Nothaft, Chief Economist at CoreLogic said that serious delinquencies spiked up by 10 percent in the Big Island after Kilauea’s eruption in May, and fell by 4 percent in the rest of Hawaii. Speaking of Carr fire which began in late July, he noted that a sharp rise in the 30- or 60-day delinquency rate by 19 percent in the Redding metro area between August to September—recording the largest monthly rise in the metric since 2006, the period that marked the beginning of foreclosure crisis. He also pointed out that 30-day delinquency rates doubled in major metros in North Carolina in the month following Hurricane Florence reached landfall. Hurricane Florence led to major disruptions in the market this September. Seven of the top eight metros that experienced the highest annual gains in overall delinquency rates were in North Carolina and South Carolina—both being areas that were heavily affected by the storm, according to the report. It also noted a jump in 30-day delinquency rate from 1.7 percent to 3.8 percent in Wilmington between August and September. CoreLogic indicated that data collected over the next two months will provide a more comprehensive picture of the storm’s impact on mortgage payments. Nationwide delinquency rates With the exception of disaster-affected areas, the report found that U.S. serious delinquency and foreclosure rates were the lowest for September in 12 years. It also reflected a steady drop in the past due rate on an annual basis, for the past nine months consecutively. Nationally, 4.4 percent of mortgages were in some stage of delinquency, recording a decline in the overall delinquency rate at 0.6 percentage, compared to 5 percent last year. No state experienced an increase in the serious delinquency rate with the exception of Alaska, the report said. “Outside of the areas affected by natural disasters, serious delinquency, and foreclosure rates have declined steadily across the nation as the labor market has improved and home prices have risen,” said Frank Martell, President, and CEO of CoreLogic. Read the full report here.  Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Single-Family Built-For-Rent’s Increasing Popularity

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first_img Single-Family Built-For-Rent’s Increasing Popularity  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Seth Welborn According to the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were 11,000 single-family built-for-rent starts for Q2 2019. Speaking to NPR, Josh Hartmann, CEO of  built-for-rent developer NexMetro Communities, stated that many of these renters in the single-family built-for-rent space are not families losing homes to foreclosure wouldn’t want to go back to renting apartments, like he expected originally.”What we were shocked to find out was it was people that had great credit, they had money for down payments, they had great incomes but they just didn’t want to own a home,” Hartmann says. “They were a lifestyle renter, renter by choice.”NexMetro has built 2,800 built-for-rent homes so far in Colorado, Arizona and Texas, which fil up quickly with a mix of renters, including aging baby boomers and millennials. However, William Wheaton, a housing economist at MIT, notes that “owning still makes much more sense.””If prices continue to rise like they have in Denver, buying in Denver will be a money tree,” Wheaton told NPR. “But even if you’re a very cautious and say, ‘No, no, no, they’re not going to continue to rise a lot, they’ll inch up a few percentage points each year’ over five or 10 years, that adds up to a sizable nest egg. And that’s what you’re giving up by renting.”Hartmann says he too hopes more young people buy homes and build equity, though renting by choice is increasing.According to a post on the National Association of Home Builders’ (NAHB’s) Best in American Living blog, renting by choice–instead of owning outright–is becoming increasingly popular among millennials.The blog said that this was where newly constructed built for-rent single-family homes came into the picture. These homes, according to the blog, present millennials “with a terrific opportunity to live the American dream–without the additional responsibilities and stress of homeownership.”The blog indicated that one of the key reasons for the rise of these built-for-rent homes was diminishing affordability.The post, written by BSB Design, said that transitioning from a multifamily property to a single-family home was a “move-up” solution for families that desired “to have the flexibility to travel, live a low maintenance lifestyle, or avoid financial burdens.” The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago built for rent Rent SFR 2019-10-07 Seth Welborn October 7, 2019 1,322 Views Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articlescenter_img Previous: Fannie Mae Examines Homebuyer Sentiment Next: Are Mortgage-Backed Securities Storm Proof? Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Home / Daily Dose / Single-Family Built-For-Rent’s Increasing Popularity in Daily Dose, Featured, Investment, News Tagged with: built for rent Rent SFR Subscribe Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days agolast_img read more