Month: May 2021

Feature: Where Oh Where Did My REO Go?

first_img Is Rise in Forbearance Volume Cause for Concern? 2 days ago Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English. About Author: Carrie Bay Servicers Navigate the Post-Pandemic World 2 days ago With fewer properties entering the foreclosure process and more delinquent borrowers avoiding foreclosure, the number of foreclosed single-family homes held by lenders and government agencies has rapidly declined. In the April issue of _DS News_ magazine, contributing writer Keith Button explored the many market drivers taking their toll on the once-strong stock of bank-owned homes and how investors, asset managers, agents, and other real estate practitioners shifted their strategies to adapt to the current market.Read more in _DS News’_ “”digital archives””:http://digital.dsnews.com/i/119281.[COLUMN_BREAK][IMAGE] Tagged with: California Association of Realtors Carrington Mortgage Holdings HAMP HARP Home Prices Home Sales Housing Affordability Housing Supply LPS Mortgage Rates Mortgage Regulation National Mortgage Settlement Negative Equity Realtors RealtyTrac Single-Family Rentals California Association of Realtors Carrington Mortgage Holdings HAMP HARP Home Prices Home Sales Housing Affordability Housing Supply LPS Mortgage Rates Mortgage Regulation National Mortgage Settlement Negative Equity Realtors RealtyTrac Single-Family Rentals 2013-12-26 Carrie Bay Feature: Where Oh Where Did My REO Go? in Featured, Foreclosure, Market Studies, REO December 26, 2013 777 Views Demand Propels Home Prices Upward 2 days ago Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post 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 Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Home / Featured / Feature: Where Oh Where Did My REO Go? Previous: Survey Uncovers Patterns and Trends Among Homebuyers Next: Commentary: What’s in Store for Housing in 2014, Part 1 The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Subscribelast_img read more

Fannie Mae’s Credit Risk Transfer Initiatives Approach the Half Trillion Dollar Mark

first_img Previous: Alliant National Title Appoints New Regulatory Compliance Officer Next: Slight Increases In Mortgage Default Rates Should Not Raise Concerns Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. November 18, 2015 971 Views in Daily Dose, Featured, News, Secondary Market Home / Daily Dose / Fannie Mae’s Credit Risk Transfer Initiatives Approach the Half Trillion Dollar Mark While the FHFA’s conservatorships of Fannie Mae and Freddie Mac are unlikely to end before 2017, the Enterprises continue to transfer more credit risk from their single-family residential mortgages to private insurers.Fannie Mae’s credit risk transfer program, Connecticut Avenue Securities (CAS), has sold more than $12.4 billion in securities to private investors, which covers $438 billion worth of mortgage loans since the program’s inception in September 2013. Fannie Mae estimates by the end of 2015, it will have transferred a portion of the credit risk on approximately half a trillion dollars worth of single-family mortgages.“We recently brought our ninth CAS deal to the market, our first CAS deal allocating actual losses from the deal’s reference pool to investors (versus a fixed severity schedule incorporated on previous deals),” said Laurel Davis, Fannie Mae’s VP of Credit Risk Transfer, in a commentary on Wednesday. “We will continue to use the actual loss framework for CAS deals going forward and provided enhanced disclosures to support this shift.”Through the CAS series and other forms of credit risk transfer such as the Credit Insurance Risk Transfer (CIRT) program, insurance/reinsurance deals, senior-subordinate securities, and collateralized recourse transactions, Fannie Mae has been able to move credit risk away from taxpayers to private capital—as opposed to the past model of acquiring credit risk and holding it through the life of the asset.“Credit risk transfer is now a regular part of the Enterprises’ business.”FHFA“Our credit risk-sharing transactions are structured so that if the covered loans experienced the same stress scenario as in the most recent housing crisis, Fannie Mae’s projected loss exposure would be limited to a relatively small piece of credit risk retained by the company,” Davis said. “Our efforts to transfer credit risk away from Fannie Mae significantly reduce taxpayers’ exposure to risk, give investors an avenue to gain exposure to the U.S. housing market, and help ensure essential funding for homebuyers.”Both GSEs have exceeded their credit-risk transfer goals for the calendar year 2015, largely due to Fannie Mae’s CAS series and Freddie Mac’s Structured Agency Credit Risk (STACR) series. Fannie Mae has transferred credit risk on $205 billion in single-family mortgages year-to-date as of October 2015 (the goal was $150 billion), and Freddie Mac has transferred credit risk on $126 billion in single-family mortgages for that same period (the goal was $120 billion).“Credit risk transfer is now a regular part of the Enterprises’ business,” the FHFA wrote in its Performance and Accountability Report for FY 2015 released earlier this week. “In all credit risk transfers, the Enterprises and FHFA have been strategic about which loans to target. Instead of using a random sample of Enterprise loans, the transactions focus on new loan purchases with the greatest credit risk. The targeted loans include new acquisitions of 30-year fixed-rate mortgages that have loan-to-value ratios exceeding 60 percent, excluding HARP (Home Affordable Refinance Program) refinances. The Enterprises are currently transferring significant credit risk on approximately 90 percent of these targeted loans, the mainstay of their single-family purchases. This approach has made the transactions easier to scale up and more economical, benefitting the Enterprises and taxpayers.” Connecticut Avenue Securities Series Credit Risk Transfer Fannie Mae 2015-11-18 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Connecticut Avenue Securities Series Credit Risk Transfer Fannie Mae Share Save Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Brian Honea Fannie Mae’s Credit Risk Transfer Initiatives Approach the Half Trillion Dollar Mark Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more

Why Will Principal Reduction Benefit So Few Borrowers?

first_img Share Save  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Why Will Principal Reduction Benefit So Few Borrowers? in Daily Dose, Featured, News, Secondary Market FHFA Principal Reduction Urban Institute 2016-04-19 Brian Honea A report from Fitch Ratings released earlier this week indicated that the principal reduction program recently announced by the Federal Housing Finance Agency (FHFA) is expected to have a minimal impact on mortgage servicers.At the same time, the program is also going to affect relatively few borrowers. The program is extended to approximately 33,000 eligible homeowners when there are approximately three million underwater borrowers nationwide. According to a new report from the Urban Institute, the number of borrowers who benefit might be only a fraction of the 33,000 eligible borrowers the FHFA is trying to reach. In order to minimize expenses to servicers and maximize borrower participation, the GSEs are providing servicers with a list of likely eligible borrowers, and they are offering the principal reduction program through a streamlined modification program that is already in use by the servicers.“Under this new program, principal is forgiven rather than simply forborne as under the current program,” wrote the authors of the report, Jim Parrott, Jun Zhu, and Laurie Goodman. “Assuming a 9.5 percent take-up rate, which is that of the streamlined modification program already in place, 3,155 borrowers would benefit. If the take-up rate of the new program is double the existing one, 6,310 would benefit.”Why are so few borrowers going to benefit from the FHFA’s recently-announced principal reduction program?For starters, only borrowers with GSE loans and borrowers who are seriously delinquent are eligible, which narrows the field down to approximately 408,000 GSE borrowers who were 90 or more days delinquent as of the end of 2015. Only 14 percent of those were 5 percent or more underwater and only 9 percent were more than 15 percent underwater. When the FHFA’s 115 percent LTV cut-off is taken into account, along with applying the criteria that the property must be owner-occupied and the balance has to be less than 250,000, it brings the total down to about 42,000 loans, which is much closer to the FHFA’s estimate of 33,000.The projected participation numbers in the program are more indicative of an improving economy rather than an overly conservative program, according to Urban Institute.“The number of underwater borrowers and seriously delinquent loans are both down sharply in recent years,” the authors wrote. “According to CoreLogic, the number of underwater borrowers has declined from 25 percent in 2011 to 8.5 percent in 2015. This is primarily because of increasing home prices.”They continued, “The number of seriously delinquent loans has fallen just as dramatically: at Fannie, they have declined from a peak of 5.59 percent in February 2010 to 1.55 percent in January 2016; at Freddie, they have fallen over the same period from 4.2 percent to 1.3 percent. This drop has been driven by liquidations and loan modifications that have brought borrowers current.”The authors cite research from HOPE NOW that indicates that there have been 7.92 million liquidations and 7.73 million modifications since the third quarter of 2007.In order to create a meaningful increase in the number of eligible borrowers who would benefit from the FHFA’s principal reduction program, one of the three major requirements (currently severely delinquent; severely delinquent as of March 1, 2016; at least 15 percent underwater) and would have to be waived or loosened. However, according to the authors, borrowers who are not severely delinquent do not need the assistance; removing the date requirement might provide borrowers with an incentive to stop making mortgage payments in order to benefit from the program; and borrowers who are barely underwater are likely to be brought back up with home price appreciation.The principal reduction program is still important despite the relatively small number of borrows who will benefit from it, according to the authors, because “it ends the prohibition on principal reduction long maintained by the GSEs. During the throes of the crisis, the GSEs’ refusal to reduce principal stymied efforts by policymakers and industry participants to ease the growing pressure exerted on the fragile market by a rising tide of negative equity. By ending the prohibition, this move finally avails future policymakers of a critical tool to address the needs of distressed borrowers in a distressed market the next time we face that challenge.”Click here to read the complete report. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Why Will Principal Reduction Benefit So Few Borrowers? Previous: Consumer Credit Default Rates Paint Mixed Picture Next: GOP Just Keeps Pushing Financial Reform Servicers Navigate the Post-Pandemic World 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 Servicers Navigate the Post-Pandemic World 2 days agocenter_img April 19, 2016 1,565 Views The Best Markets For Residential Property Investors 2 days ago About Author: Brian Honea Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Tagged with: FHFA Principal Reduction Urban Institute Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Related Articles Subscribelast_img read more

Homes Reach Boom Prices Nearly a Decade Later

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 Previous: Regulatory Relief Bill Created to Spur Economic Growth Next: Four Pools of Loans, One Winning Bid Servicers Navigate the Post-Pandemic World 2 days ago November 13, 2017 1,653 Views Home prices have returned to boom levels similar to 10-years ago when the housing bubble burst and catapulted the Great Recession. Despite similarities between then vs. now, the current market is experiencing material differences, according to data released Monday from Realtor.com. Historically low inventory levels, tighter lending standards, significant job and household growth, and a strong housing market backed by economic fundamentals are allegedly keeping the U.S. from another bubble burst.The biggest difference between the past and present are updated lending standards. With reforms like Dodd-Frank and the Consumer Protection Act requiring loan originators to show verified documentation that a borrower is able to repay a loan, lending standards are the tightest they have been in 20 years, the report noted.”Lending standards are critical to the health of the market,” said Danielle Hale, Chief Economist for Realtor.com. “Unlike today, the boom’s under-regulated lending environment allowed borrowing beyond repayable amounts and atypical mortgage products, which pushed up home prices without the backing of income and equity.”With the revised lending standards, the median 2017 home loan FICO score was 734, an increase from 700 in 2006, on a scale of 330 to 830.2.Additionally, tight lending standards have kept home flipping and over-building in check by limiting borrowing power. However, this has contributed to constrained construction levels.In 2006, there were 1.4 single-family housing starts for every household formed, which doesn’t represent a healthy market. Currently, the market is below normal construction levels at 0.7 single-family household starts per household formation, according to the data.However, economic fundamentals, such as strong employment and demand paired with low inventory is driving prices higher in the current market. However according to Hale, it is important to remember rising home prices didn’t cause the housing crash.”It was rising prices stoked by subprime and low documentation mortgages, as well as people looking for short-term gains—versus today’s truer market vitality—that created the environment for the crash,” said Hale.In the present market, Hale added, “The healthy economy is creating more jobs and households, but not giving these people enough places to live. Rapid price increases will not last forever. We expect a gradual tapering as buyers are priced out of the market—not a market correction, but an easing of demand and price growth as renting or adding roommates becomes a more affordable alternative.”When it comes to job growth, in October 2017, the unemployment rate was at 4.1 percent—representing a 17-year low, with more than 150,000 jobs created on average each month.Millennial job growth has also added to the rising demand, the report noted, as 52 percent of reported home shoppers were millennials. And while this generation continues to age, the demand for homes is expected to increase.In addition to the growing demand, low inventory is causing an impact. The market is currently averaging 4.2 months supply. Vacancies are very tight with for-sale vacancies dropping to 1.3 million in 2016, compared to 1.9 million in 2006. About Author: Nicole Casperson Subscribe in Daily Dose, Featured, Headlines, Journal, Market Studies, News The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected]  Print This Post Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Tagged with: Danielle Hale HOUSING Housing Bubble mortgage Realtor.com Danielle Hale HOUSING Housing Bubble mortgage Realtor.com 2017-11-13 Nicole Casperson Home / Daily Dose / Homes Reach Boom Prices Nearly a Decade Later Share Save Related Articles Homes Reach Boom Prices Nearly a Decade Later Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

Combating Housing Shortages With Backyard Homes

first_img Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Combating Housing Shortages With Backyard Homes in Daily Dose, Featured, Journal, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 9, 2018 3,141 Views The Best Markets For Residential Property Investors 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 David.[email protected] Tagged with: Affordability backyard homes Home Prices housing shortages inventory shortages tiny homes  Print This Post Share Save Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Affordability backyard homes Home Prices housing shortages inventory shortages tiny homes 2018-04-09 David Whartoncenter_img Sign up for DS News Daily 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 Previous: Is Housing Ready for a Rebound? Next: Auction.com Adds Min Alexander as COO Proposals to help address California’s housing crisis—such as allowing more housing closer to busy transit hubs—are sometimes met with refrains of “not in my backyard!” However, Los Angeles aims to combat the housing shortages by looking exactly there—in residents’ backyards.Like many parts of the country, Los Angeles is facing the simultaneous stresses of too few homes and skyrocketing home prices. It’s only going to get worse: city government estimates it will need to build 100,000 new housing units by 2021 in order to keep up with demand. For the past couple of years, the city’s Innovation Team has been exploring an unorthodox solution: allowing residents to repurpose their backyards with the construction of smaller homes, or “accessory dwelling units” (ADU). With nearly half a million single-family homes located within the city of Los Angeles, that’s a lot of potential untapped space.A Fast Company magazine post traces the recent history of Los Angeles’ experiment in backyard housing. The magazine recently declared the Los Angeles Innovation Team’s backyard home experiment the winner in the urban design category of their 2018 World Changing Ideas Awards. But the process began back in 2015, when the Innovation Team was born from a Bloomberg Philanthropies grant and directed by LA Mayor Eric Garcetti to “focus on the growing problem of displacement from rising rents.”The Innovation Team partnered with architects from LA-Más, researchers from UCLA’s CityLab, and one local LA family to set about trying to build a backyard home. Along the way, every step of the process would be examined, from planning to building to securing the proper permits and cutting through the red tape involved. One major step was a bill that removed significant fees required to set up utilities for a backyard home, championed by Mayor Garcetti, which took effect last year.LA isn’t the only town experimenting with tiny homes as a solution to housing problems. San Jose, California, recently held meetings to discuss a possible “tiny homes” program as a means to combat homelessness. Tempe, Arizona, is building a community of 600-square-foot homes that will be available for $130,000 or less.Los Angeles’ backyard home plan is thinking big, with a goal of 10,000 units by 2021. While there is still a long way to go, 2,342 ADU permits were issued in 2017, according to Fast Company. That’s up from only 120 in 2016. They say the longest journey begins with a single step; maybe the resolution to California’s housing shortage will begin with a few thousand tiny backyard houses. Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Combating Housing Shortages With Backyard Homes About Author: David Wharton Demand Propels Home Prices Upward 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

What Is Impacting HMBS Performance?

first_img Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The issuance of new Home Equity Conversion Mortgage-backed securities (HMBS) remained stable in April at slightly above $567 million according to an analysis by New View Advisors citing Ginnie Mae HMBS data.The analysis said that the month’s data was consistent with recent months that have seen a much lower issuance compared to the past few months.The data revealed that 86 pools were issued in April, including about $300 million of new first participation pools compared to 120 pools totaling $1.2 billion sold by HMBS issuers during the same period last year. New View projected that HMBS float shrinkage will continue “as April’s payoffs are almost certain to outweigh new issuance and interest roll-up.”Additionally, the analysis said that reverse mortgage lenders were facing a “new era of reduced volume, primarily due to the lower PLFs for Home Equity Conversion Mortgages (HECMs)” that has been in effect since the beginning of 2018. Looking at past years’ data, it found that HMBS issuance had reduced to a total of $9.6 billion in 2018 compared to $10.5 billion in 2017.”The HMBS market will be hard pressed to equal last year’s totals, which include some HMBS issuance backed by new HECM loans originated at higher PLFs,” New View said in its analysis.For 2019, New View saw similar volume statistics “other than the occasional seasoned first participation issue: $300 million in April, $277 million in March, $274 in February, and $304 million in January. April’s tail pool issuances totaled $221 million, within the range of recent tail issuance.”The analysis also commented on the recent HMBS pools of Live Well Financial, which has issued over $160 million in HMBS pools since it sold HMBS books to RMF in 2018. In April, Live Well issued nine HMBS pools totaling $32 million, the analysis revealed.Breaking up the pool issuance, New View said that the April 2019 issuance was divided into 36 original pools and 50 tail pools. Original pools are those HMBS pools backed by first participation in previously uncertificated HECM loans. Tail HMBS issuances are HMBS pools consisting of subsequent participation. Tails are not from new loans, but they do represent new amounts lent. Tail HMBS issuance can generate profits for years, helping HMBS issuers during challenging times. May 10, 2019 1,538 Views 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 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. Home / Daily Dose / What Is Impacting HMBS Performance? Share Save Tagged with: Ginnie Mae HECM Loans HMBS MBS New View Financial Servicers Navigate the Post-Pandemic World 2 days ago What Is Impacting HMBS Performance? Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Investment, News The Best Markets For Residential Property Investors 2 days ago About Author: Radhika Ojha Previous: Buyer’s Remorse: Rental Investments and Homeowner Opinion Next: 5 Ways to Bridge a Racial Homeownership Gap Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Ginnie Mae HECM Loans HMBS MBS New View Financial 2019-05-10 Radhika Ojha Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

What Does the Jobs Report Mean for Housing?

first_img Housing Market Jobs Report 2019-08-02 Mike Albanese Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Home / Daily Dose / What Does the Jobs Report Mean for Housing? Governmental Measures Target Expanded Access to Affordable Housing 2 days ago What Does the Jobs Report Mean for Housing? in Daily Dose, Featured, Government, News The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Housing Market Jobs Report August 2, 2019 1,114 Views About Author: Mike Albanese 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. Previous: Fannie Mae’s Q2 Performance Next: Building Trust in Servicing Demand Propels Home Prices Upward 2 days agocenter_img  Print This Post The Best Markets For Residential Property Investors 2 days ago U.S. employers continued their trend of adding workers, as the Labor Department reported the economy added 164,000 jobs in July and the unemployment rate held at 3.7%. The Labor Department also reported that average hourly earnings exceeded expectations, rising 3.2% year-over-year. Bloomberg reported that despite continued growth, the three-month average increase of 140,000 was the slowest in almost two years, which is line with forecasts for a gradual slowing of job gains. In response to the report, Doug Duncan, Fannie Mae’s Chief Economist, said the jobs report came in close to expectations with an economy that is “gradually slowing” as the economic expansion lengthens. He also expressed optimism in the unemployment rate as 370,000 households were added to the labor force in July. “This good news represents the largest gain to the labor force this year as households continue to return from the sidelines,” Duncan said. Realtor.com’s Chief Economist Danielle Hale said the July report didn’t factor in the Fed’s decision to cut interest rates, and it could make it more challenging to justify another cut later this year. “The 164,000 jobs added in July are a strong signal that the economy continues to grow and could make some Fed decision-makers less inclined toward rate cuts in the short-run, especially as the unemployment rate still hovers near 50-year lows at 3.7%,” Hale said. Hale added the month’s earning’s growth of 3.2% helps homebuyer purchasing power, especially with low mortgage rates. The housing industry, though, still faces issues with affordability and the “excess of demand” for supply of lower price points. Odeta Kushi, First American Financial Corporation’s Deputy Chief Economist, said the record low mortgage rates of 3.8% and rising wages helped increase homebuyer power over the prior month. She anticipates more of the same in the months ahead. “Further decreases in mortgage rates could be on the way. Combined with the strength of the labor market, potential home buyers may see their house-buying power continue to grow in the months ahead,” Kushi said.  Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Share 1Save Subscribelast_img read more

Protecting Homes from Wildfire

first_img  Print This Post Protecting Homes from Wildfire Tagged with: Insurance Investment preservation wildfire in Daily Dose, Featured, Investment, Loss Mitigation, News Demand Propels Home Prices Upward 2 days ago Some of the most destructive wildfires in history occurred in 2018, and homes in wildfire-prone areas are still at risk. CoreLogic recently hosted a webinar titled “Wildfire: Low Risk Doesn’t Mean No Risk” to discuss wildfire risk and mitigation practices. Tom Jeffery, Principal, Science and Analytics at CoreLogic, noted how recent wildfires stack up against the past. According to Jeffery, there is a concerning trend towards larger and more destructive fires, as well as a rising cost of managing these fires. “The Federal cost of wildfire suppression has gone from $1 billion in 2000 to $2 billion in 2015, and now $3 billion as of 2018 last year,” he said. It isn’t just California, either. According to CoreLogic, Colorado has also seen its most destructive wildfires in the last 10 years. According to Jessica Marose, Professional Product Management, wildfires are the most expensive to insure by claim. According to analysis by CoreLogic, the Camp and Woolsey fires left behind a trail of losses between $15 billion and $19 billion after being contained in late November 2018. The analysis recorded a total loss in the range of $11 billion and $13 billion from the Camp Fire, the most destructive wildfire in the state’s history. Additionally, estimated losses from Woolsey Fire in Southern California are estimated to be between $4 billion to $6 billion. Residential and commercial properties account for building, content, and additional living expenses. The estimated losses include damage caused by fire, smoke, demand surge and debris removal.The residential loss from the Camp fire alone is between $8 billion to $9 billion. Woolsey fires ravaged infrastructure worth $3.5 to $5.5 billion in the residential space and $0.5 billion in commercial losses.Since the 2018 Camp Fire, approximately 90% of impacted properties, or 9,276, have been cleared, and 4,784 have been certified clean, while just 2 homes have been rebuilt. Insurance Investment preservation wildfire 2019-08-23 Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago August 23, 2019 998 Views The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Seth Welborn Previous: What to Make of the QM Patch Moving Forward Next: The Week Ahead: Changes in Home Values and Mortgage Ratescenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Protecting Homes from Wildfire Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Subscribelast_img read more

Missed Payments, Financial Stress Straining Investors & Landlords

first_img  Print This Post Related Articles Missed Payments, Financial Stress Straining Investors & Landlords COVID-19 Housing Trends Landlords mortgage 2020-11-11 Cristin Espinosa The Best Markets For Residential Property Investors 2 days ago More than one-third of landlords have not received 100% of rent payments during September, according to new data released by the Urban Institute and Avail, a property management platform.In an October survey of 1,381 landlords who own rental properties, 35.2% of respondents said they did not receive the full amount of rental payments from tenants during September, while 38.1% were not expecting to receive full rent payments in October. More than three-quarters of respondents stated their September situation was due to tenants who were struggling financially during the ongoing COVID-19 pandemic and either did not or could not make full rent payments.The survey also found 18.6% of landlords reported their vacancy rates have increased since the start of the pandemic. The combination of non-paying tenants and vacant units has created great financial stress on landlords, with 31% of survey respondents admitting they felt more pressure to sell their properties during the pandemic than before the crisis started.However, higher-income landlords and those without a mortgage were under less pressure to sell their properties. More than 47% of landlords with under $50,000 of income reported increased pressure to sell, while just over 20% of landlords with income of $150,000 or more stated they were pressured. And a little less than one-third of landlords with a mortgage said they experienced increased pressure to sell their properties, whereas slightly more than one-quarter of respondents without a mortgage experienced the same stress.Despite the increased vacancy rates, landlords are not rushing to fill empty units, with 35.6% if respondents tightening – 30% of respondents demand higher credit scores and 50% expect higher income relative to monthly rental rates. The survey also found Black and Hispanic landlords were more likely than their white counterparts to intensify the screening process, by a 50% to 35% measurement. But the survey also noted that Black and Hispanic landlords are more likely to own two-to-four-unit rental buildings in lower-income communities where eviction rates are higher.As for the near-future, 37% of landlords feared the remaining months in 2020 will see the continuation of their problems due to the extension of the federal eviction moratorium, while 34.5% cited the expiration of pandemic-related unemployment insurance benefits as the primary source of their dilemma. Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: FHA Proposes Private Flood Insurance for Single-Family Mortgages Next: The ‘Unclear’ Future of the Community Reinvestment Act Data Provider Black Knight to Acquire Top of Mind 2 days ago Phil Hall is a former United Nations-based reporter for Fairchild Broadcast News, the author of nine books, the host of the award-winning SoundCloud podcast “The Online Movie Show,” co-host of the award-winning WAPJ-FM talk show “Nutmeg Chatter” and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill’s Congress Blog and Profit Confidential. His real estate finance writing has been published in the ABA Banking Journal, Secondary Marketing Executive, Servicing Management, MortgageOrb, Progress in Lending, National Mortgage Professional, Mortgage Professional America, Canadian Mortgage Professional, Mortgage Professional News, Mortgage Broker News and HousingWire. Share Save Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Phil Hall Subscribe Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Missed Payments, Financial Stress Straining Investors & Landlords Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: COVID-19 Housing Trends Landlords mortgage November 11, 2020 1,607 Views in Daily Dose, Featured, Newslast_img read more

The Evolution of the Single-Family Rental Market

first_img About Author: Christina Hughes Babb Related Articles Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago In the past decade, the single-family rental market has evolved from individual units owned and rented out by small landlords to large scale operations by big investors with significant portfolios of houses. Some of the large companies entering the market are building units specifically to rent or creating communities of single-family rentals to be professionally managed like an apartment complex.Bloomberg’s Patrick Clark last week tackled the topic, pointing out that single-family rentals are drawing interest from institutional money, and that builders and apartment firms are pushing into that corner of the market.While a study last summer showed the interest in SFR has been increasing since recovery from the Great Recession, Clark’s article notes that the pandemic has ignited Americans’ desire for larger living spaces and thus sparked a new level of “Wall Street zest” for this sector of suburban real estate.Clark notes that big investors including J.P. Morgan Chase and Nuveen Real Estate recently have bet on the supposition that “there are lots of Americans who want spare bedrooms and backyards, but don’t have cash for down payments.”“It’s really an inflection point in SFR,” Michael Carey, Senior Director for Altus Group, an advisory firm, told Bloomberg. “It used to be an alternative asset class. Now people look at it as a solution.”Low housing inventory means builders including Lennar Corp., the largest U.S. homebuilder by revenue, are launching campaigns of unprecedented focus on rental-specific builds.Clark writes that apartment companies also are investing big in SFR. Greystar Real Estate Partners, for example, could go from managing 1,500 to 25,000 homes in the next five years, according to the company’s Executive Director Mike Clow.“Three years ago I would have said this was a fad,” Clow told Bloomberg. “But it’s become more prevalent because it’s filling a need for consumers.”While small landlords still own the vast majority of single-family rentals, the pandemic has accelerated the interest in SFR, and some see a convergence of apartment companies, large-scale investors, and mom-and-pop landlords on the horizon.”Most real estate investment trusts that specialize in apartments still believe that they’re in a different business than single-family landlords, Jeffrey Langbaum, an analyst at Bloomberg Intelligence told Clark. “Others, however, see the logic in companies offering tenants everything from downtown apartments to suburban homes.”Gary Beasley, CEO at Roofstock, a platform for acquiring single-family rentals, told Bloomberg that he’s been thinking of this convergence of apartment and SFR landlords for a long time. He says this innovative outlook might “allow landlords to service customers throughout their life cycle—starting with an urban apartment in their 20s, moving them to a suburban rental home in their 30s, and perhaps even selling them a home in the 40s.” Demand Propels Home Prices Upward 2 days ago February 9, 2021 13,692 Views Share Save Previous: Declining Delinquency Rate Points to ‘Increasing Stabilization’ Next: Coalition Urges Congress to Boost Mortgage-Payment Assistance Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, News SFR stakeholders won’t want to miss this year’s Five Star Single-Family Rental Summit, scheduled for May 12, 2021, at the Four Seasons Las Colinas in Dallas. Click here or on the banner below for more info.center_img The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 2021-02-09 Christina Hughes Babb Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / The Evolution of the Single-Family Rental Market  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe The Evolution of the Single-Family Rental Market Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days agolast_img read more