May 2021

first_imgHome / Daily Dose / Job Growth Surges in March; Unemployment Stays Put Related Articles in Daily Dose, Featured, Government, Headlines, News Payrolls continued to expand steadily in March, though a close look at the numbers suggests a slightly cooler picture than the headline statistics depict.The Department of Labor reported 192,000 new jobs in March, down slightly from February’s revised job growth of 197,000 (from 175,000 originally reported). January’s employment growth was also revised, receiving a bump up to 144,000 from 129,000 reported last month.Despite last month’s apparent strength, the overall unemployment rate stubbornly stayed at 6.7 percent, unchanged from February (which was a slight step up from January’s 6.6 percent).What’s more, the seasonally adjusted U-6 stat, which includes all unemployed people as well as everyone “marginally attached” to the labor force and those employed part-time for economic reasons, notched up slightly to 12.7 percent from 12.6 percent previously.Perhaps more encouragingly, the number of long-term unemployed (people jobless for 27 weeks or longer) inched down slightly to 3.7 million—though, at 35.8 percent, the share of long-term unemployed remained high.Among other major indicators, news was mixed: The average workweek increased slightly to 34.5 hours, offsetting a net decline over the prior months and giving weight to arguments that recent declines were a temporary effect of the weather. In an interview before the government’s numbers were released, Moody’s Analytics director Ryan Sweet said the spring thaw should help boost hours.“We should get a bounce-back in March and also possibly into April,” Sweet said, adding: “A longer workweek bodes well for future hiring.”Meanwhile, average hourly earnings—another stat Sweet said he’s keeping an eye on—edged down a cent to $24.30.“During this recovery, the relationship between wage growth and consumer spending has been very, very tight,” he said. “In other words, consumers are spending only what they have in their pockets.”With income still struggling compared to other economic figures, Sweet says consumers have been reluctant to lean on credit for purchases, hampering spending. The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Share Save  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Job Growth Surges in March; Unemployment Stays Put Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago April 4, 2014 706 Views The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Bureau of Labor Statistics Jobs Moody’s Ratings Unemployment 2014-04-04 Tory Barringer Tagged with: Bureau of Labor Statistics Jobs Moody’s Ratings Unemployment Previous: DS News Webcast: Friday 4/4/2014 Next: North Carolina’s Economy Back on the Move as Unemployment Falls The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Last year turned out to be a good year for U.S. homeowners with mortgages. A new study by CoreLogic found that roughly 63 percent of all homeowners saw their equity increase by a total of $783 billion in 2016. That’s an increase of almost 12 percent. Average home equity rose by $13,700.Moreover, more than 1 million borrowers moved out of negative equity during 2016, CoreLogic reported. That brings the percentage of mortgaged homeowners with positive equity to 94 percent, or approximately 48 million homes.The national aggregate value of negative equity was approximately $283 billion at the end of Q4, down by approximately $700 million, or 0.3 percent, from Q3; and down about $26 billion, or 8.4 percent, from $308.9 billion in Q4 2015.There were 3.17 million of mortgaged residential properties with negative equity in Q4, about 6 percent of all homes with a mortgage. This, according to CoreLogic, is a decrease from 3.23 million homes in Q3. It’s also a 25 percent drop from a year earlier, when there were 4.23 million homes in negative equity.“About one-fourth of all outstanding mortgages have a term of 20 years or less, which amortize more quickly than 30-year loans and contribute to faster equity accumulation,” said Frank Nothaft, chief economist at CoreLogic.Texas and Hawaii had the highest percentages of homes with positive equity, both over 98 percent. Alaska, Colorado, Oregon, Utah, and Washington all had equity rates at 98 percent. Washington had an average equity increase of $31,000; Delaware experienced a small decline.Citywise, the San Francisco area had the highest percentage of mortgaged properties in a positive equity position at 99.4 percent. Houston and Denver tied for second place, each with 98.5 percent of homes in positive equity. Los Angeles had 97 percent and Boston 95.3 percent of homes in the black.Nevada had the highest percentage of homes with negative equity at 13.6 percent, followed by Florida and Illinois, which each had rates over 11 percent. Rhode Island and Arizona followed closely, with about 10 percent of homes in the red. These top five states, CoreLogic reported, account for 30 percent of negative equity in the U.S., but only 16.3 percent of outstanding mortgages.Miami, at 16 percent negative equity, had the highest percentage of underwater mortgaged properties last year. Las Vegas followed with 15.5 percent, and Chicago was the only other city with double-digit negative equity, 12.6 percent. Washington, D.C., with 8.4 percent, and New York, with 5 percent, rounded out the top five negative-equity metros.“Home equity gains were strongest in faster-appreciating and higher-priced home markets,” said Frank Martell, president and CEO of CoreLogic. “The states with the largest home-price appreciation last year were Washington and Oregon, at 10.2 percent and 10.3 percent, respectively, with average homeowner equity gains of $31,000 and $27,000, respectively. This is double the pace for the U.S. as a whole.”And while statewide home-price appreciation was slower in California at 5.8 percent, Martell said, the high price of housing there led to California homeowners gaining an average of $26,000 in home equity wealth last year. Demand Propels Home Prices Upward 2 days ago Is Rise in Forbearance Volume Cause for Concern? 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago CoreLogic Frank Martell Homeowners 2017-03-09 Scott Morgan The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Homeowners Regained Equity in 2016 Previous: The Road Ahead Next: Home Sales Increase as Buyers Avoid Rising Rents 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 / Featured / Homeowners Regained Equity in 2016 Servicers Navigate the Post-Pandemic World 2 days agocenter_img Related Articles Tagged with: CoreLogic Frank Martell Homeowners The Best Markets For Residential Property Investors 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago March 9, 2017 1,036 Views About Author: Scott Morgan Subscribe Servicers Navigate the Post-Pandemic World 2 days ago in Featured Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agolast_img read more

first_img  Print This Post in Daily Dose, Featured, Market Studies, News The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Strong immigrant housing demand played a large role in the industry’s recovery from the Great Recession, according to a new report from the Urban Land Institute’s Terwilliger Center for Housing.The report, called “Home in America: Immigrants and Housing Demand,” found that foreign-born homebuyers helped the housing industry bounce back from the recession—particularly in robust markets like San Francisco.“Without growth of the foreign population, regions with strong housing markets such as San Francisco would not have recovered as quickly following the recession,” the report stated. “Markets that continue to struggle in the recession’s aftermath such as Buffalo would have experienced even weaker growth. Overall, recent immigration to those and other metropolitan areas has had a positive effect on local housing markets.”But it’s not just the impact immigrants have already had on the industry that the report examines; it’s also the effect they’ll have on housing moving forward—namely, the way they’ll influence growth patterns in certain areas.“Immigrants have helped stabilize and strengthen the housing market throughout the recovery,” said Stockton Williams, Executive Director for the Terwilliger Center for Housing. “Immigrants’ housing purchasing power and preferences are significant economic assets for metropolitan regions across the country. This suggests the potential for much more growth attributable to foreign-born residents in the years ahead.”Statistically, immigrant homeownership rates rise as their length of time in the country does.“In San Francisco, Houston, and Buffalo, the homeownership rate among immigrants who have been in the country since at least 2006 is similar to the rate for the native-born population,” the report found. “Immigrants, therefore, will be a key source of demand for homeownership in the years to come.”So where will immigrants impact the markets most? That’d be the suburbs, according to the report.“Immigrants seeking to own homes, as well as those renting homes, are increasingly drawn to the suburbs in search of employment opportunities, lower-cost housing, and a higher quality of life,” the report stated. “Suburbs are home to high-income, high-skilled immigrants, as well as lower-income, lesser-skilled immigrants.”As immigrant homeownership grows, the report suggested, communities need to work to keep them connected and engaged.“Urban areas experiencing significant immigrant population growth should explore how to best accommodate immigrants and leverage the positive effect they have on the housing industry and economy. Investments in housing, retail, recreational and cultural amenities, as well as social assistance and education programs can help forge a strong connection between immigrants, neighborhoods, and the greater community.”Read the full report at Uli.org. Immigrant Homebuyers Helped Post-crisis Bounceback HOUSING Housing Crisis Immigration 2017-04-11 Seth Welborn About Author: Aly J. Yale Sign up for DS News Daily Previous: Construction Jobs Dip Slightly Next: Quicken Reports Widening Appraiser-Homeowner Disconnect Tagged with: HOUSING Housing Crisis Immigration Servicers Navigate the Post-Pandemic World 2 days ago Related Articles April 11, 2017 1,623 Views center_img Home / Daily Dose / Immigrant Homebuyers Helped Post-crisis Bounceback Share Save Aly J. Yale is a freelance writer and editor based in Fort Worth, Texas. She has worked for various newspapers, magazines, and publications across the nation, including The Dallas Morning News and Addison Magazine. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more. The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

first_img About Author: Staff Writer Subscribe The Best Markets For Residential Property Investors 2 days ago in Featured, Headlines, News Demand Propels Home Prices Upward 2 days ago LoanCare, a ServiceLink company, announced that Adam Saab has assumed the role of EVP and COO, effective June 5. Saab had previously held the position of SVP at PNC Mortgage where he was responsible for core servicing for all mortgage and consumer products for the bank, as well as for the home lending integration as PNC combined the mortgage and home equity products onto the Black Knight MSP platform.“The background Adam has developed at regulated banks and his deep experience managing large-scale servicing operations for both primary mortgages and home equity credit give LoanCare a valuable advantage as we expand to serve more customers,” said Dave Worrall, President of LoanCare.In this executive leadership position, Saab is responsible for leading LoanCare’s effective and cohesive operations management team in managing business plan objectives, maximizing client business opportunities and meeting customer service goals and standards.Prior to joining PNC Mortgage, Saab spent 14 years at CitiFinancial Mortgage Company, where he held various positions in default servicing. At the time of his departure, he was SVP of the foreclosure and post default processes, overseeing 2,100 associates in both domestic and offshore sites.Saab has held key management roles in regulatory compliance issues such as, the consent order, National Mortgage Settlement, and implementation of the Consumer Financial Protection Bureau regulations.“Adam is going to take LoanCare to the next level,” Worrall said. Adam Saab COO LoanCare 2017-06-09 Staff Writer Related Articles The Best Markets For Residential Property Investors 2 days ago Previous: Tiffany Malm-Ruiz to Oversee REO at USRES Next: Debt Level Among Top Disagreements for Couple Homebuyers Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Featured / LoanCare Announces Adam Saab as COO June 9, 2017 4,047 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Tagged with: Adam Saab COO LoanCare Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago LoanCare Announces Adam Saab as COO  Print This Postlast_img read more

first_imgHome / Daily Dose / They Don’t Spend Like They Used to Share Save A recent report published by Bankrate suggests that younger millennials aged 18 to 26 spend more on daily, habitual expenses, such as eating out, coffee, and alcohol, than any other generation, which can limit their long-term ability to save for a downpayment on their mortgage. According to the data, 54 percent of the people in their age group say they have a meal away from home at least three times per week, compared to the 33 percent of Gen-Xers. Thirty percent say they buy coffee at least three times a week. Fifty-one percent of younger millennials aged 21 to 26 (for legal reasons) said they go a bar at least once a week.Millennials also have another problem that previous generations didn’t face: soaring student debt. Cumulative student loan debt has reached $1.3 trillion dollars in the U.S., and college tuition continues to rise each year. Coupled with a trip to the neighborhood watering hole, a week’s worth of morning coffee, and lunch out on the town, where will millennials find the time—and the money—to save for a downpayment? One option, aside from completely cutting off vice spending and tightening the belt, is the rise in popularity of low-down payment mortgages, which are now offered by major banks such as, Bank of America, Wells Fargo, and Fifth-Third. Veterans and active-duty service members can get a private loan guaranteed by the Department of Veterans Affairs, and the Navy Federal Credit Union offers a zero-down mortgage option. Millennials that aren’t in the military but have impeccable credit can qualify for low down payment mortgages with mortgage insurance, either through a private firm or through the FHA. The Chicago Tribune has reported that nearly 35 percent of millennials that opted to go the route of homeownership did so using FHA mortgages, which is 14 percent higher than the overall market share, which sits at 21 percent. Previous: The Week Ahead: Fed Talking Money Next: Leading the Field Related Articles in Daily Dose, Featured, Market Studies, News The Best Markets For Residential Property Investors 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 July 3, 2017 1,278 Views Subscribe Tagged with: Millennials Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brianna Gilpin Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Millennials 2017-07-03 Brianna Gilpin Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily They Don’t Spend Like They Used tolast_img read more

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Most industries rely on document collaboration to conduct business and finalize transactions. Whether it’s the mortgage industry dealing with clearing title, an accounting firm providing a tax opinion, or a company preparing to go through the acquisition process, due diligence is necessary through current, trustworthy documentation. Yet, with multiple players in different locations involved in business deals—and some types of transactions like mortgages, audits, and M&A activity taking weeks or months to complete—reliable processes for document sharing is challenging.Here’s a hint: most companies today rely on one of two main models by which stakeholders share documents, but both are flawed. Fortunately, there’s a superior option now available, in the form of blockchain technology. Blockchain offers a disruptive collaboration model by which work groups and teams across diverse industries can store information in a way that everybody trusts is unaltered—without needing to rely on a third-party company or outside entity.Option 1: Sending the Document Itself.In this model, someone within the mortgage ecosystem—say the title company—takes a document such as a title commitment out of their system and sends it to someone else who is involved in the transaction—say the lender. The title company sends the title commitment, either by email or a secure file transfer system, taking the document out of their system and sending it to the lender. While almost all businesses operate using this model today, the problem with it is as soon as the recipient has the document, it’s no longer necessarily current. At any point after the act of sending the document a change to the source document could occur, making the recently sent document obsolete.If you follow the title commitment through the eyes of the lender, they assume the document they have received is current and correct and since they hold the document now in their system they have the benefit of knowing the document itself hasn’t changed. What the lender doesn’t know is whether someone else involved with the transaction—perhaps a different colleague at the title company—has added or updated information in the title system, rendering the lender’s “reliable” document instantly out of date. So, the lender gets the benefit of knowing their document version hasn’t been changed, but it still might be no longer accurate or relevant.Option 2: Sending a Link to the Document. Many businesses are understandably worried about the versioning issue that comes up when using the first model, whereby a document received isn’t necessarily the most current update of the file. For documents that will change frequently due to the nature of the transaction, companies can opt instead to send the other party a link to the document rather than sending the file itself.The advantage here is that when the lender clicks on the link, they can review the current version of the title commitment right off the title company’s website or server. Any time anyone at the title company updates the file, the lender will always be able to see the most current document via the link.This sounds great in theory, but the fact is that this second model is as problematic as the first when it comes to trusting the reliability of the information. If the lender opens the file via the link today and works off of it, then closes it and opens it up tomorrow, it might not be the same document tomorrow. With no alert or notification when the document has been altered, the lender has no way of knowing when someone is changing the file at the title company. Choosing either of these models for document collaboration is a bit like building a house on sand. In short, the lender has to select between two bad choices.Option 3: Blockchain CollaborationIt’s clearly time for a paradigm change in how businesses approach document collaboration. This is particularly true for transactions, like mortgages, that have inherent risk given the necessary continued collaboration of multiple parties over a period of months and years. A breakthrough technology already exists that allows collaborative teams to experience the benefits of each model above without the flaws of either one. That technology is called blockchain. Here’s how it works.Using a blockchain document validation service, the title company registers its title commitment and shares this document via a blockchain entry. The lender then accesses the document via blockchain document systems. Through the blockchain technology the title company records a digital proof of the document to ensure the document is never altered. The digital proof acts like a digital fingerprint, creating a tamper proof seal on the blockchain. Any changed versions of the document are automatically registered as new version on the blockchain and all parties are notified. Blockchain technology brings an uneditable, virtually unhackable, neutral third party to the collaboration for the added validation, confidence and confidentiality required in sensitive transactions. Disrupting the Paradigm for Document Collaboration Document Collaboration Factom 2017-08-02 Laurie Pyle Home / Daily Dose / Disrupting the Paradigm for Document Collaboration The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Document Collaboration Factom August 2, 2017 2,165 Views center_img Laurie Pyle is EVP of Factom, a blockchain-as-a-service company that created the mortgage industry’s first practical blockchain technology solution – Factom Harmony. Previously, Pyle was Managing Director at Corsair Associates and worked with technology companies in the mortgage and financial services industry. Prior, she was EVP/CIO for Stewart Lender Services. Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Previous: A Helping Hand from HUD Next: Ocwen on the Rebound Demand Propels Home Prices Upward 2 days ago About Author: Laurie Pyle  Print This Post 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 ago Share Save in Daily Dose, Featured, Market Studies, Newslast_img read more

first_img Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Featured / CitiMortgage Announces New Digital Origination Platforms in Featured, News CitiMortgage Announces New Digital Origination Platforms January 15, 2018 1,490 Views Black Knight Citi HOUSING mortgage 2018-01-15 Nicole Casperson Demand Propels Home Prices Upward 2 days ago Previous: FHLBank San Francisco Launches $100 million Quality Jobs Program Program Next: Mortgage Capital Trading Announces New Leadership Tagged with: Black Knight Citi HOUSING mortgage The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Subscribecenter_img Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save About Author: Nicole Casperson The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Is Rise in Forbearance Volume Cause for Concern? 2 days ago CitiMortgage, a New York-based global bank, has announced it has entered into dual agreements to integrate its full suite of U.S. mortgage products into a single digital platform for its clients.According to the release, a new front-end digital experience, LoanFx, from Digital Risk LLC, a provider of digital technology platforms and services, will be complemented by a new loan origination system, LoanSphere Empower, from Black Knight.CitiMortgage will initiate implementation of these new solutions immediately, with full production expected in early 2019.“With these best-in-class systems in place, we will revolutionize the experience we provide our clients, through every channel and product,” said CD Davies, Head of CitiMortgage. These agreements are another critical step toward making mortgage a key differentiator for our franchise and delivering the full power of Citi’s network to clients.”The best-in-class digital capabilities will enable mortgage clients to go through the full loan cycle, from research to application, processing, scheduling appraisals, handling title, to closing, through the channel of their choice.With the ultimate goal of increasing client satisfaction, Digital Risk’s LoanFx solution is designed to streamline the client journey through the front end of the mortgage originations process. With the ability to aggregate data automatically, including automated income and asset information, Citi will be able to deliver digital disclosures, accelerate credit decisions, and reduce cycle times.Black Knight’s Empower offers exceptional functionality, including integration with service providers for pricing, fees, compliance, appraisal, fraud, and settlement services with seamless workflow and fully automated processes in many instances. Its comprehensive implementation and support model includes an existing integration with Cenlar, the company undertaking the servicing of Citi’s owned mortgage loan portfolio, which will create a seamless process for clients after closing. 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] Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

first_img in Daily Dose, Featured, News Previous: Riding Out the Storm: Servicing Lessons From Natural Disasters Next: Fannie Mae Announces New CIRT Transaction Home / Daily Dose / Tracking the Rise of Home Prices Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Home prices rose 3.4% in May 2019, which is down from 3.5% growth the prior month, according to the latest CoreLogic Case-Shiller U.S. National HPI (HPI). “Growth in home prices, as measured by the Case-Shiller HPI, began to stabilize in May.  The more than 100 basis point decrease in mortgage rates since November has revived home sales and given buyers additional purchasing power in the market,” said Tian Liu, Chief Economist at Genworth Mortgage Insurance. “That extra purchasing power is beginning to show up in home prices.”The 10-city composite annual increase came in at 2.2%, which is a slight decrease from 2.3% in the previous month. “Despite the stabilization, home price growth has slowed from over 6% in early 2018 to less than 3% in May,” Liu said. “That slowdown has made homes less attractive as an investment, especially for investors with a shorter time horizon, even though the cost of financing has decreased. This is one factor contributing to the slower than expected rebound in home sales this year.”Las Vegas led the nation with a 6.4% year-over-year price increase, and was followed by Phoenix’s 5.7% increase. CoreLogic states that seven of the 20 cities in the composite reported higher price increases in the year ending May 2019 than the year ending April 2019. Danielle Hale, Chief Economist for realtor.com, added the slowing of growth has stabilized as lower mortgage rates have “boosted home-buyer purchasing power.” While stating it is promising to see price growth in the fastest growing markets, Hale said the number of markets seeing  growth was seven in May compared to nine in April. Also, the first time Seattle, Washington, posted a decline, although slight, at 1.2%.  “While increased availability of homes is driving the current slowdown in price growth, looking forward, if mortgage rates remain near recent lows, we could see prices pick back up as a result of improved affordability as well as the possibility of more limited inventory availability,” Hale said. Tracking the Rise of Home Prices The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Home Prices S&P/Case Shiller Home Price Indices 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 Demand Propels Home Prices Upward 2 days agocenter_img About Author: Mike Albanese Sign up for DS News Daily  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save July 30, 2019 1,432 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Home Prices S&P/Case Shiller Home Price Indices 2019-07-30 Mike Albanese Subscribelast_img read more

first_img Share Save in Daily Dose, Featured, Government, News, Secondary Market 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. Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily  Print This Post Credit Risk Freddie Mac 2020-05-08 Seth Welborn Freddie Mac Transfers Risk on $140.7B in Mortgages Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago May 8, 2020 2,440 Views Demand Propels Home Prices Upward 2 days agocenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Freddie Mac’s Single-Family business today announced that its Credit Risk Transfer (CRT) transactions transferred $5.1 billion of credit risk on $140.7 billion of single-family mortgages from U.S. taxpayers to the private sector in the first quarter of 2020.“Freddie Mac Single-Family’s first-quarter CRT issuance significantly exceeded our first quarter totals from just a year ago, a result of our effort to accelerate the time from a loan’s acquisition to its placement in a CRT reference pool,” said Mike Reynolds, VP, Credit Risk Transfer. “In the face of the quarter’s challenging economic environment, the CRT program continued to show its value as a risk management tool.”Through its flagship offerings, Freddie Mac issued approximately $4.5 billion across seven on-the-run DNA and HQA STACR and ACIS transactions in the first quarter. Subordination and lender risk sharing made up the balance of issuances in the quarter. As a result of STACR and ACIS on-the-run transactions this quarter, Freddie Mac transferred between 79% (high LTV HQA series) and 90 percent (low LTV DNA series) of the credit risk on the underlying reference pools.Since the first CRT transaction in 2013, Freddie Mac’s Single-Family CRT program has cumulatively transferred a portion of the credit risk on $1.6 trillion in mortgages. As of March 31, 2020, 51% of the Single-Family credit guarantee portfolio was covered by CRT transactions, and conservatorship capital needed for credit risk on this population was reduced by approximately 75 percent through these transactions.Both Freddie Mac and Fannie Mae reported income losses in Q1 2020.Freddie Mac’s net income was down $1.8 billion from the prior quarter, citing higher credit-related expense of $1.1 billion, or $0.9 billion, after-tax, primarily due to higher expected credit losses as a result of the COVID-19 pandemic. The company also pointed to lower gains on single-family asset disposition activity of $0.6 billion.”Freddie Mac’s first quarter was marked by unprecedented challenges to our country, our business and our markets—and I am very proud of how we have responded,” said David M. Brickman, CEO, Freddie Mac. “We are offering relief to millions of homeowners and renters, supporting our customers in new and vital ways, and serving as a stabilizing force for the housing finance system. Through these efforts, we are continuing to fully serve our mission.” The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Freddie Mac Transfers Risk on $140.7B in Mortgages Previous: 7.7% of Mortgage Now in Forbearance Next: The Week Ahead: The Virtual LL100 Servicer Summit 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 About Author: Seth Welborn Tagged with: Credit Risk Freddie Mac Subscribelast_img read more

first_img Demand Propels Home Prices Upward 2 days ago Editor’s note: This story originally appeared in the December edition of DS News, available here. The COVID-19 pandemic and the related economic downturn have left the country in a state of great uncertainty. As the last quarter of 2020 ends, professionals across all industries are left wondering what the next year may look like in terms of economic recovery and potential changes in federal government policies. Although the housing and mortgage industries have not suffered as much economic loss as other industries have during this year’s economic upheaval, the question remains: how will housing be impacted by ongoing COVID-19 responses and government policies? Brian A. Marks, J.D., Ph.D., is Senior Lecturer and Executive Director of the Entrepreneurship and Innovation Program in the Economics and Business Analytics Departments of Pompea College of Business at the University of New Haven. Marks recently spoke with MReport, tapping into his expertise in economics to provide some insight into what the near future could look like as the country attempts economic recovery—and what this could mean for the housing and mortgage sectors.Do you anticipate further economic relief being passed by Congress? Unfortunately, I’m not optimistic that we are going to see an economic relief package. The implications are quite disconcerting for the economy in general, and for the housing market, mortgages, and financial markets. If we look at some context, this is certainly a healthcare crisis—a public health crisis that led to an economic crisis. We are in an economic recession. We’re in a fragile situation, absent of a congressional relief package. Chairman Powell of the Federal Reserve, in his most recent statements, confirms what I’m saying. The Fed has done almost all it can do under its charter: lowering interest rates to, in essence, 0%, providing special-purpose vehicles for loans. such as the main street lending program, which has been considered not particularly successful, given the amount of money allocated for such program and the amount of money yet to be lent out under the program. Chairman Powell called for the use of fiscal policy, which is in the domain of Congress and the president. Because we have potentially a second wave, and the lack of a vaccine anytime soon, there is potential for new stay-at-home orders. So, what does this mean? Well, the numbers are fragile. The latest national unemployment numbers put us at approximately 7.9% unemployment. There’s a misclassification error of approximately 0.4%. The good news—that’s come down.  In April, we were at 14.7% with a 5% misclassification error. So, things have been improving. The August report from the council of economic advisors at the White House noted the benefits of the economic package, the CARES Act, and how it averted a complete disaster. We could characterize it that way. It’s shoring up aspects of the economy with the PPP, supplemental unemployment insurance, and various other programs and packages to help businesses. But the latest numbers also show weaknesses. The latest report shows yet again an increase to about 3.8 million people permanently unemployed. That has been steadily increasing while the general unemployment numbers have been declining. One could say the decline was the low-hanging fruit. However, because of continued delays in congressional action and all the surrounding uncertainty, people are concerned about their own balance sheets and less likely to spend money. This puts continued pressure on the retail sector, even though we’ve seen some increases in that area. So, I would not be surprised if we see permanent unemployment numbers continue to increase yet again another month. It would not be a surprise if it goes over four million. When we look at the general environment and the recent announcements from Disney and the airline industry opting for further layoffs in the absence of a relief package, this will all put pressure on businesses and individuals and their respect for balance sheets.What impact do you expect as homeowners begin to come out of their forbearance plans in the new year? As we have an absence of a relief package, there’s continued downward pressure. The banks holding these mortgages, some of which they are selling, that keeps the train running on the banks’ balance sheets. However, banks ultimately must make the decision, as these plans come to an end: do they wish to extend the plan? What does it mean if they do not extend the plan? Does that mean they’re going to wind up acquiring all these housing assets for which there’s no market out there for purchase? Then we’ll see downward pressure on housing prices. If we can view this as more of a pandemic-induced economic crisis, then some banks may be willing to renew some of these forbearance plans with borrowers in light of the pandemic.  However, the bank can expect that, at the end of this pandemic, things will revert to normal. Therefore, banks will be balancing this out. It does not mean some of them will not provide an extension. Some will provide and some will not, I suspect. However, it shows a general weakness in the markets in general, which leads us to start looking at bankruptcy filings. A bank, whether it’s for a corporation or an individual, could wind up pushing individuals into bankruptcy, which may not serve anyone’s purpose.  What do you anticipate as far as bankruptcy trends in the new year? On the bankruptcy front, I’m not particularly optimistic. In particular, we could look at Chapter 11 bankruptcies. Based on the current data through September, it appears that our Chapter 11 bankruptcies, which involves reorganizations, already exceeds the number of bankruptcies filed in 2019. It does not come as a surprise. We started off the year with several retail bankruptcies, pre-COVID-19. Brick and mortar retail operations are dealing with the further increase of online sales. With COVID-19 and stay at home orders, further pressure was added to brick-and-mortar operations. As a result, I believe as of now, we’ve seen a report of 29 major retail bankruptcies. When you think of it, that’s quite significant, but not a surprise. We could anticipate even more as we move forward through the end of the year. I would expect we are going to easily exceed the number of bankruptcies from 2019 to 2020 in the Chapter 11 arena. Further complicating matters is the absence of a relief package. Absent any relief, I think we’re going to see prolonged and delayed recovery, and that will further push more individuals to file for bankruptcy. I’m now talking about personal bankruptcy, as well as corporate reorganizations. What we may also see is certain conversions of Chapter 11 to Chapter seven liquidations. This will all have a cascading effect. As we move forward with uncertainty, consumer spending, though it has shown improvement, may experience weakness as we move toward the end of the year without a relief package. The state and local government is screaming, if you will, for support from the federal government. This will put downward pressure on personal consumption. Retail mall operations are under significant pressure. Retail malls, or malls in general, are going to have to re-image and look to reposition the nature of their facilities and determine if those facilities are sustainable in the current form in which they exist. We’re seeing retail mall operations, we’re seeing property operations, all of which have a significant amount of debt. They may seek bankruptcy protection as well and look to reorganize, reduce debt liability, reduce lease liabilities in the case of retail, and all that filters through right down to the main street. I will expect an increase in bankruptcy filings, certainly an increase in Chapter 11, very likely an increase in personal bankruptcies and conversions to liquidations on the retail front.What trends do you foresee on the unemployment front? First of all, the latest national report put unemployment at 7.9%. We can’t forget that there was a misclassification error, so unemployment is actually over 8%. We could say it’s about 8.3% at the local level, and when I say local, you could look at state levels. In a state like Connecticut, where I currently reside, we just received our latest number of 7.8% unemployment, but a misclassification error of 12 to 13% unemployment by the Office of Research. So, that misclassification era is about 5 or 6%. We have a continued spread of COVID-19, the need for testing and monitoring, the absence of a vaccine, the delay in a relief package. We could look at the incentives created by that environment. None of this bodes well for the employment outlook. We have seen an increase in unemployment claims recently. It’s still below a million, but it’s still quite significant. You add to that an increase in long term unemployment, 27 weeks, that number has increased. Added to the fact that the permanent job losses have also increased in the last report to 3.8 million. So, while directionally the U3 report on unemployment looks good, we’ve dropped from a peak of 14.7%, which was really closer to 20%, because of the misclassification error, to 7.9% or 8.3%. These numbers are nowhere close to the pre-COVID-19 unemployment numbers, which were historic in and of themselves. It does not suggest we have a strong economy and a V-shaped recovery. It is a mischaracterization to suggest we have a V-shaped recovery. I can call it sending waves of re-engagement. Others can refer to it as a K-shaped recovery, but we’re seeing a disparity as far as winners and losers as we go into this next wave of COVID-19. In essence, we’re headed toward a perfect storm. All those factors that I enumerated showing weakness, add COVID-19 layer on top of that, flu season, and we’re going to be confronted with a great deal of stress, both from a public health perspective and an economic perspective. So in one sense, the final word I can rely on Chairman Powell of the Federal Reserve, who has implored for, and called for, fiscal relief, which requires Congress and the President to come together to provide a relief package. The Fed, unfortunately, given its charter, cannot do much more than it already has done. It has lowered interest rates to 0%, arguably. It introduced a Main Street Lending Program, which was laudable. I would say it was helpful, in one regard. There was over $600 or $650 billion allocated for that program. $75 billion of which was going to come from the treasury, but as of, I think September, we haven’t even hit $1 billion of loans under that program. So, while it’s laudable and directionally helpful, we could go that way, we could see it was not widely received. In fact, the Main Street Lending Program was misnamed. It wasn’t targeted toward the mom-and-pop retail store on “Main Street.” It was really designed for firms that need $250,000 minimum, $500,000 minimum, of loans. It started off at a million, then it dropped to $500,000, and I believe in the final incarnation, a $250,000 loan program. A lot of Main Street mom-and-pop operations wouldn’t even be able to call upon or support such a loan facility, because that’s what’s required for the loan itself. So, the Fed is right, Chairman Powell is right, to call upon the legislature and the President to come together and come up with fiscal relief.  Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / A Perfect Storm Could Push Back Economic Recovery Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Previous: For First Time Since Spring, Serious-Delinquency Rates Hold Steady Next: Fannie Mae Upgrades Predictions for 2021 Housing Market, Economy Data Provider Black Knight to Acquire Top of Mind 2 days ago A Perfect Storm Could Push Back Economic Recovery  Print This Post 2020-12-15 David Wharton Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: David Wharton Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe December 15, 2020 1,048 Views last_img read more