Mortgage Rates Remain Steady After Fed Meeting

first_img Related Articles  Print This Post Mortgage Rates Remain Steady After Fed Meeting Just as the Federal Reserve stuck to its course on bond purchases this week, mortgage rates too remained more or less steady, measures show.Freddie Mac released Thursday the results of its Primary Mortgage Market Survey for the week ending June 19, recording an average interest rate of 4.17 percent (0.6 point) for a 30-year fixed-rate mortgage (FRM), down from 4.20 percent last week. A year ago, the 30-year FRM averaged 3.93 percent.The 15-year FRM was also down, albeit only 1 basis point, averaging 3.30 percent (0.5 point) for the week.Shifting to adjustable-rate mortgages (ARMs), the average rate for a 5-year Treasury-indexed hybrid ARM was 3.00 percent (0.4 point) this week, falling from 3.05 percent. The 1-year ARM, on the other hand, ticked up to 2.41 percent (0.4 point) from 2.40 percent previously.A year ago, interest rates were on their way up on speculation that the Fed may soon start tapering its bond stimulus. Now that the central bank is on track to potentially end its stimulus purchases by the end of the year, rates have actually shown little movement, defying expectations.While the first quarter’s economic contraction is partly responsible for rates staying put, analysts at finance site Bankrate.com say developments overseas are also having an effect.”[A]lthough the Fed is buying fewer bonds, the ongoing stimulus efforts of the European Central Bank have driven interest rates so low on the other side of the Atlantic that many overseas investors have piled into U.S. Treasuries, filling the void left by the Fed and keeping both bond yields and mortgage rates at low levels,” they said.As for its own national survey, Bankrate captured the 30-year fixed at an average 4.33 percent, down a point, while the 15-year fixed was up the same amount 3.44 percent.The 5/1 ARM remained unchanged at 3.37 percent, meanwhile. Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Bankrate Fixed-Rate Mortgaeg Freddie Mac Mortgage Rates 2014-06-19 Tory Barringer Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Mortgage Rates Remain Steady After Fed Meeting Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago June 19, 2014 1,563 Views center_img Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Bankrate Fixed-Rate Mortgaeg Freddie Mac Mortgage Rates Previous: CFPB Director Fields Questions from House Committee Next: Ellie Mae: Refinances Decline Slightly in May Share Save in Daily Dose, Featured, Government, Headlines, News Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

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Colorado Housing Rates ‘Better Off’ in 33 of 35 Counties

first_img Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland.  Print This Post Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Colorado Housing Rates ‘Better Off’ in 33 of 35 Counties Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Brian Honea Colorado Foreclosure Starts Home Prices Housing Market RealtyTrac 2014-10-14 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago According to RealtyTrac’s 2014 Election Housing Market Scorecard released on Tuesday, 33 out of 35 counties in Colorado with sufficient housing data to score ranked in the “better off” category, meaning that the housing market in those counties is better off than it was two years ago.The total population of the better off counties was 4.8 million, which accounted for 99 percent of the population in Colorado with sufficient housing data to score. None of the 35 counties in the state ranked in the “worse off” category. Two counties with a population totaling 40,385 ranked in the toss-up category, according to RealtyTrac.One reason for the overwhelming “better off” rating in Colorado is the fact that unemployment is way down in the state’s most populated housing counties, which are El Paso, Denver, and Arapahoe, compared to where it was two years ago in each of those counties. In Denver County, unemployment fell by 3 percentage points from July 2012 to July 2014, while El Paso County and Araphaoe County experienced declines of 2.9 and 2.5 percentage points, respectively, in that same two-year period, RealtyTrac reported.Another possible reason for the better off rating for most of Colorado is the decreasing number of underwater mortgages. According to RealtyTrac, only 6 percent of homeowners with a mortgage in the three most populated housing counties in Colorado are underwater. Foreclosure starts are down in two of those three counties from August 2012 to August 2014: Denver County and El Paso County saw declines of 67 and 54 percent in foreclosure starts for the two-year period, while Arapahoe County saw a slight increase (3 percent) in foreclosure starts for that same period.Home prices are up in all three counties compared with where they were two years ago, according to RealtyTrac. Arapahoe County led the way with a 22 percent increase in home prices from two years ago, while home prices jumped by 14 percent in Denver County and by 5 percent in El Paso County. A rise in prices without a corresponding rise in income is hurting the housing affordability in those three counties, however. Denver and Arapahoe Counties reported a 5 percent increase in the percentage of median income needed to purchase a median price home in the last two years, while El Paso County reported a 2 percent jump.In the polls, Democratic incumbent Mark Udall and Republican challenger Cory Gardner are almost locked in a dead heat with Udall leading in the latest poll by only one percentage point, 48 percent to 47, in a Rasmussen Reports poll on October 1. Obama won Colorado in 2012. This year’s election will be on November 4. Related Articles The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Foreclosure, News Tagged with: Colorado Foreclosure Starts Home Prices Housing Market RealtyTraccenter_img October 14, 2014 906 Views Sign up for DS News Daily Previous: Study: 52 Percent of County Housing Markets ‘Better Off’ Than Two Years Ago Next: Survey Finds Consumer Spending Tight Despite Financial Security Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 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 Colorado Housing Rates ‘Better Off’ in 33 of 35 Counties Subscribelast_img read more

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Should Mortgage Servicing Be Reformed?

first_img Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago  Print This Post Sign up for DS News Daily Share Save The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 2016-09-06 Kendall Baer Should Mortgage Servicing Be Reformed? Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago A recent report from the Urban Institute discusses the opinions of speakers at a recent panel discussion cohosted by the Urban Institute and CoreLogic, who feel the high cost of servicing must be addressed, along with improving the experience of borrowers, evaluating stronger regulatory oversight of new players, and promoting innovation and competition. Urban Institute also reports that those in the industry must also reassess the method of paying servicers for their work given that the flat rate, which has been in use for three decades, is what they believe to be misaligned with the actual cost of servicing mortgages. The report says that there may not be consensus on the details, but most agreed that the consequences of further delay could be severe.Urban Institute reports that under the current compensation structure, which has been in place since the 1980s, servicers are paid a flat 25 basis point fee for conventional mortgages. Housing Finance Policy Center Co-Director Laurie Goodman says, “this regime pays servicers too much for servicing performing mortgages and too little for servicing nonperforming ones.”Urban Institute also reports Raghu Kakumanu, Senior Vice President at Wells Fargo as sharing that the cost of servicing nonperforming loans “can be highly unpredictable” because delinquent borrowers “need personalized help”. The report notes that this means servicers cannot reasonably estimate how many loss-mitigation actions, how much time, how many resources, and how much money it will take to reinstate a nonperforming loan or see it through to foreclosure.The report says that this matters because the exorbitant and unpredictable cost of servicing nonperforming loans gives lenders a strong reason to avoid lending to borrowers who have even a slight probability of default. Urban Institute feels that the current servicer compensation model is a large contributing factor to tight credit for those without pristine credit scores.In September 2011, the Federal Housing Finance Agency (FHFA) released a detailed discussion paper for public comment in an effort to reform servicer compensation. The report cites that this paper discussed two options. The first being a “reserve account” model that would require a portion of servicing income to cover the cost of servicing nonperforming loans and the second being a “fee-for-service” model that would pay servicers a set dollar fee for servicing performing loans and an incentive compensation tied to positive actions or outcomes for nonperforming loans.But the report states that the FHFA had to defer further action on this effort for several reasons. One of them was the fact that the mortgage market was too fragile in 2011, and the industry was too busy addressing delinquencies to take up any major reforms. Another according to Ed DeMarco, Senior Fellow at the Milken Institute and former acting director of the FHFA, was servicers “had their hands full trying to keep up with evolving loan-modification programs”. The report also states that there was lack of clarity on what DeMarco says “the servicing rules and requirements were going to look like going forward”.Urban Institute states that none of these reasons are relevant today, though, and they see the mortgage market as stronger, with house prices rising and delinquencies and modifications approaching pre-crisis levels. The report states that in fact, the housing market has not only stabilized, but has improved significantly since 2011. Urban Institute also notes that in addition, the Consumer Financial Protection Bureau (CFPB) finalized its servicing rule three years ago, giving servicers greater regulatory certainty and the CFPB has continued to enhance and update these requirements, with a recent update adding several “clarifications” and “clean ups” that servicers requested, according to Laurie Maggiano, Program Manager at the CFPB.Urban Institute says that the most important reason to move forward on these reforms is the high cost of inaction. The report states that status quo puts the industry on a path to continued increases and volatility in servicing costs, tighter credit for low- and moderate-income borrowers, and increasing safety and soundness risks posed by the growing role of non-banks. The report also states that the status quo leaves in place barriers that they feel stifle competition and discourage technological innovations that might help reduce servicing costs or improve customer service. Home / Daily Dose / Should Mortgage Servicing Be Reformed? Governmental Measures Target Expanded Access to Affordable Housing 2 days ago September 6, 2016 1,115 Views Servicers Navigate the Post-Pandemic World 2 days ago About Author: Kendall Baer Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: How to Work a Conference Next: Six Rivers Land Conservancy Makes Appointments to Board of Directors The Best Markets For Residential Property Investors 2 days ago Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. last_img read more

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Down, Down, Down for Mortgage Rates

first_img Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Who says mortgage interest rates are headed toward the 5 percent mark? For the week ending January 19, rates declined for the third consecutive week and are now headed back toward 4 percent.The average 30-year FRM dropped by 3 basis points over-the week, down to 4.09 percent after reaching a two-year high of 4.32 percent to start 2017, according to Freddie Mac’s latest Primary Mortgage Market Survey (PMMS). The average 15-year FRM declined by 3 basis points down to 3.34 percent for the week ending January 19.“After trending down for most of the week, the 10-year Treasury yield rose following the release of the CPI report,” Freddie Mac Chief Economist Sean Becketti said. “In contrast, the 30-year mortgage rate fell three basis points to 4.09 percent, the third straight week of declines.”Bankrate.com posted similar numbers in its weekly national mortgage rates survey, with the 30-year fixed rate averaging 4.18 percent—the third straight week of declines reported by Bankrate. The average 15-year FRM remained unchanged from the previous week at 3.41 percent in Bankrate’s survey.“Mortgage rates fell for the third week in a row, despite a slight upward creep in inflation and wages,” Bankrate.com reported. “The Consumer Price Index went up 2.1 percent in 2016, which is higher than the Federal Reserve’s inflation target. The Fed also noted that businesses are seeing upward pressure on wages. The inflationary news didn’t push mortgage rates higher, though, as geopolitical uncertainty dominated.”According to Bankrate, the average monthly payment is $975.70 for a $200,000 mortgage loan at the current 30-year FRM rate of 4.18 percent.Prior to the three straight weeks of declines, mortgage rates had increased for eight consecutive weeks. Many analysts were predicting future increases for mortgage rates up to within the 4.5 percent to 5 percent range by the end of 2017, especially following the Fed rate hike in December. But mortgage rates have gone the other direction. Mortgage rates hovered slightly above the record low of 3.31 percent (set in late 2012) for much of 2016. Down, Down, Down for Mortgage Rates January 19, 2017 1,232 Views  Print This Post Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. The Best Markets For Residential Property Investors 2 days ago About Author: Brian Honea Previous: Prices Rise, Inventory Falls Next: Lure of Homeownership Overshadows Rental Options The Best Markets For Residential Property Investors 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Housing Market Mortgage Rates 2017-01-19 Brian Honea Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, News Home / Daily Dose / Down, Down, Down for Mortgage Rates Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Housing Market Mortgage Rates Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

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Golden State Records Drop in Home Sales

Home / Daily Dose / Golden State Records Drop in Home Sales  Print This Post February 18, 2019 1,152 Views Sign up for DS News Daily Golden State Records Drop in Home Sales Share Save Tagged with: Andrew LePage California CoreLogic Home Sales Andrew LePage California CoreLogic Home Sales 2019-02-18 Donna Joseph in Daily Dose, Featured, Market Studies, News The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] Related Articles The Best Markets For Residential Property Investors 2 days ago Home Sales in California downshifted harshly in December 2018—reflecting a seven-year high for mortgage rates the prior month, more stock market volatility and a continued hold-out by some would-be buyers who are hoping it will pay to wait—according to Andrew LePage, Professional, Research Analyst at CoreLogic. The report titled “California’s Year Over Year Drop in Home Sales Largest in Eight Years”, LePage noted that the 2 percent annual gain in the median sale price in December was the smallest in nearly seven years. This, however, understates the affordability challenge many would-be buyers face. The monthly principal-and-interest mortgage payment on the state’s median-priced home in December 2018 was up 10.7 percent compared to the previous year around the same period. LePage noted that this is because of a nearly 0.7-percentage-point gain in mortgage rates over the prior year.Per CoreLogic’s estimate, approximately 30,697 new and existing houses and condos were sold statewide in December 2018—recording the lowest sales tally for a December in 11 years. CoreLogic public records data shows that December 2018 sales dropped by 8.4 percent from November 2018 and fell 20.2 percent from December 2017. The report found that last December’s 20.2 percent year-over-year sales decline was the steepest for any month since October 2010, when sales fell 23.2 percent. The drop in sales occurred at all price levels, it indicated. The median price paid for all new and existing houses and condos sold statewide in December 2018 was $475,000, declining 3.1 percent from November and recording an upward spike from 2.0 percent from December 2017. In nominal terms, California’s median sale price hit an all-time high of $500,000 in June 2018. “Stock market volatility creates a headwind for high-end activity. Market corrections can spook high-end buyers and leave some with inadequate funds to cover down payment and closings costs,” LePage said. The other highlights for December 2018 revealed that in the six-county Southern California region, 15,781 new and existing houses and condos sold in December—dropping by 20.3 percent year over year. December’s median sale price was $515,000, up 1.1 percent year over year. The nine-county San Francisco Bay Area recorded sales of 5,341 new and existing houses and condos, down 21.6 percent year over year. December’s median sale price was $785,000, up 4.6 percent year over year.CoreLogic data suggest that some of the state’s more affordable counties logged annual gains in total sales or relatively small annual declines in December 2018. However, there were also some relatively affordable counties that experienced annual sales declines more in line with the coastal regions. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Donna Joseph Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Bridging the Gap in Black Homeownership Next: The Great Fall of Mortgage Delinquencies Subscribe read more

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Investors Setting Their Sights on Starter Homes

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe CoreLogic Investor Starter Homes Video Spotlight 2019-07-17 Seth Welborn According to CoreLogic Deputy Chief Economist Ralph McLaughlin, investor homebuying in 2018 was the highest on record. Investors purchased around 11% of available homes that year, and in this Video Spotlight, McLaughlin discusses why investors are focusing their efforts on the starter home market, and what impact this may have on potential homebuyers.According to CoreLogic data, “mom-and-pop” investors grew from 48% of all investor-purchased homes in 2013 to over 60% in 2018, and these small-volume investors seem to be focusing primarily on starter homes. Investors purchased starter homes at 2-3 times the rates of middle upper-tier homes.”Why are investors buying homes at high rates in some markets and lower rates in others?” McLaughlin asks. “Simply put, investors are attracted to markets where rents are relatively high compared to purchase prices. This called a cap rate, and it is highly correlated with the share of investor activity across the largest 100 markets.”McLaughlin goes on to say that markets that witnessed a larger increase in the share of investors also saw their market heat up.”While an uptick in investors into a market perhaps increases competition and lowers supply, the opposite is also possible: markets with tightening supply could draw investors in as they perceive such markets to be safer bets than those with more plentiful supply,” he continues. “Either way, it’s a truism that homebuyers today are more likely to cross paths with investors during an open house than at any other time in the past two decades.” July 17, 2019 1,154 Views Demand Propels Home Prices Upward 2 days ago Tagged with: CoreLogic Investor Starter Homes Video Spotlight Previous: Credit Risk: The Highs and Lows Next: Homeownership Rates Missing the Mark Home / Daily Dose / Investors Setting Their Sights on Starter Homes The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Share Savecenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago Investors Setting Their Sights on Starter Homes The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles 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.  Print This Post in Daily Dose, Featured, Investment, Newslast_img read more

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Industry Impact: American Employment and Wages Rise

first_img About Author: Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. in Daily Dose, Featured, Government, News Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago construciton Employment Federal Reserve 2019-11-01 Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Previous: What’s Missing from GSE Reform Next: Over $2T Worth of Homes at Risk of Wildfire Destruction The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save November 1, 2019 1,103 Views Employment rose by 128,000 in October according to the latest Employment Situation Summary from the Bureau of Labor Statistics. Fannie Mae Chief Economist Doug Duncan notes that this number accounts for net losses of 42,000 for motor vehicles and parts manufacturing, and what this means for the Fed’s rate decision.“The average workweek held steady, and average hourly earnings growth was unchanged at 3.0% year over year, which should offset concerns of weakening personal income growth,” Duncan said. “In the household survey, the unemployment rate ticked up one-tenth this month but remains at historically low levels, and labor force participation increased as well, indicating workers are continuing to return from the sidelines. Based on this report, the Fed should be comfortable with its tone at the recent FOMC meeting in which it implied a more muted appetite for future rate cuts.”With the increased number of jobs comes an increased volume of residential construction workers, notes First American Deputy Chief Economist Odeta Kushi. The solid jobs report is a good reflection of strength in the housing market.“More hammers means more homes, so October’s month-over-month gain of 2,900 residential construction jobs signals an increase in new home construction may be on the horizon, which would benefit home buyers and the housing market,” Kushi said in a statement. “Since the recession, housing starts per construction worker (construction productivity) has improved, but seems to have settled just above 1.4 housing starts per worker. The rise in construction jobs is good news for the housing market, as finding ways to increase the productivity of construction workers is critically important to alleviating the labor shortage challenge and the gap between household formation and home building.”Americans are making more as well, according to U.S. Secretary of Labor Eugene Scalia.”Once again, Americans are receiving more money in their paychecks, as year-over-year wage growth rose by 3.0%,” Scalie said. “Wages have grown at or above 3.0% for 15 straight months, including September’s increased revision.”center_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Home / Daily Dose / Industry Impact: American Employment and Wages Rise Tagged with: construciton Employment Federal Reserve 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 ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Industry Impact: American Employment and Wages Rise Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

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FHFA Gives Update on Conservatorship and GSE Reform

first_img Servicers Navigate the Post-Pandemic World 2 days ago FHFA Gives Update on Conservatorship and GSE Reform Related Articles October 28, 2019 1,491 Views Demand Propels Home Prices Upward 2 days ago  Print This Post Fannie Mae FHFA Freddie Mac 2019-10-28 Seth Welborn Home / Daily Dose / FHFA Gives Update on Conservatorship and GSE Reform Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News, Secondary Market Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Seth Welborncenter_img The Federal Housing Finance Agency (FHFA) recently released a new Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac and a new 2020 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions. According to the FHFA, the three objectives of this new Strategic Plan and Scorecard are to ensure that the GSEs foster competitive, liquid, efficient, and resilient (CLEAR) national ​housing finance markets; operate in a safe and sound manner appropriate for entities in conservatorship; and prepare for their eventual exits from the conservatorships.“Our nation’s mortgage finance system is in urgent need of reform,” said FHFA Director Mark Calabria. “The vision for reform articulated in the Strategic Plan and advanced in the Scorecard will serve borrowers and renters by preserving mortgage credit availability, protect taxpayers by ensuring Fannie Mae and Freddie Mac can withstand an economic downturn, and support a strong and resilient secondary mortgage market.”Part of the FHFA and the GSE’s plan to protect taxpayers has included the uniform mortgage-backed security (UMBS). Fannie Mae and Freddie Mac marked the completion of their Single Security Initiative with the launch of the UMBS on June 3.“UMBS is the result of close collaboration with FHFA, Freddie Mac, Common Securitization Solutions, and hundreds of housing finance stakeholders and we congratulate all involved on this achievement,” said Renee Schultz, SVP, Capital Markets, Fannie Mae in a statement. “We remain focused on ensuring that all market participants continue to make a smooth transition to UMBS and maintaining a highly liquid housing finance market.”Fannie Mae and Freddie Mac are also preparing to transition out of conservatorship. Speaking at the Eighth Annual AEI-CRN Housing Conference, FHFA Director Mark Calabria stated that he “never thought [he] would see a conservatorship longer than six months.”“I have a responsibility to fix them and get them out,” he added. Previous: Ellie Mae Acquires Capsilon Next: Changes in Housing Policy The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Fannie Mae FHFA Freddie Mac 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. Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Subscribelast_img read more

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Increasing Natural Disasters Endanger Affordable Housing Supply

first_img December 3, 2020 976 Views Subscribe Previous: Real Estate Valuations in a Time of Crisis Next: Housing Trends and Georgia’s Political Fortunes Sign up for DS News Daily Tagged with: Climate Science flooding Related Articles Climate Science flooding 2020-12-03 Christina Hughes Babb  Print This Post Home / Daily Dose / Increasing Natural Disasters Endanger Affordable Housing Supply Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Christina Hughes Babbcenter_img Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 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 The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Flooding and other natural disasters are increasing, scientists say, putting the nation’s already dwindling affordable housing supply at risk, according to a peer-reviewed environmental research paper entitled, “Sea Level Rise and Coastal Flooding Threaten Affordable Housing,” by Climate Central and the National Housing Trust.A combination of low-income housing’s fragile infrastructure, socioeconomic vulnerability, and increasingly frequent flooding presents “a triple threat” to occupants of the country’s “already scarce affordable housing,” conclude the study’s authors.Their paper presents the bleak possibility of a mid-century America that has lost a significant percentage of residential inventory to flooding, water damage, and rising ocean levels. Because they often occupy low-lying neighborhoods and low-quality structures, low-income residents are particularly vulnerable.The researchers predict that, while the trends will affect cities across the nation, damage will be highly concentrated in particular metros. The number of housing units exposed to frequent flooding will triple between 2000 and 2050, and 20 cities will account for 75% of the exposure, the authors concluded. The U.S. by 2050 is expected to lose 24,519 units to repeated flooding, and Virginia, Massachusetts, New Jersey, and other mid-Atlantic regions face the most risk.Research showed that the frequency of coastal floods is increasing and will continue to do so—they show a correlation between increased flooding and “continued high carbon emissions.”The widely accepted expectation of a 100-year flood (with a 1% annual chance of occurrence) could be happening at an average of 40 times more often at tide gauges across the contiguous U.S., the study showed, and areas with a typical once-per-year tidal flooding could see weekly flooding by 2050.The authors explain the methodology for determining “affordability” and risk in the report at iopscience.org, and provided the following graphic:”The combination of physical vulnerability of affordable housing infrastructure, socioeconomic vulnerability, and more frequent flooding due to sea-level rise presents a triple threat to residents of the country’s already scarce affordable housing,” note the authors.Even dimmer is the reality that once a unit of affordable housing is wiped out by a storm, flood, or other disaster, it is difficult to replace.Laurie Schoeman, national director of resilience and disaster recovery for Enterprise Community Partners, a national nonprofit affordable housing developer, spoke to Bloomberg’s CityLab about the study.“It’s so hard to replenish housing stock once it’s lost,” she said, “often due to NIMBYism and racism. Both lead to lost affordable housing stock not being replaced anytime soon.”One of the study’s authors and Climate Central’s CEO and Chief Scientist Benjamin Strauss explains that all property owners stand to be harmed by flooding, but that those in affordable housing would find it more challenging to recover.“Many more people in the general population will be affected by sea-level rise than the affordable housing population,” Strauss told CityLab. “But the affordable population group is the one likely to hurt the most, who can’t afford to find a remedy on their own, and tend to not have the voice needed to change the allocation of public resources.”Because of the concentration in certain areas, the scientists said, it might be possible to address the issue of preserving coastal-area housing via “limited, strategic, and city-level efforts” Share Save in Daily Dose, Featured, Market Studies, News Increasing Natural Disasters Endanger Affordable Housing Supply Data Provider Black Knight to Acquire Top of Mind 2 days ago 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. last_img read more

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Profit-Per-Loan Hits Record High in 2020

first_imgHome / Daily Dose / Profit-Per-Loan Hits Record High in 2020 Data Provider Black Knight to Acquire Top of Mind 2 days ago Profit-Per-Loan Hits Record High in 2020 Sign up for DS News Daily April 13, 2021 635 Views The Mortgage Bankers Association (MBA) has reported that independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks made an average profit of $4,202 on each loan originated in 2020, a $1,470 increase per loan over 2019’s totals.”The year 2020 was a banner year for the mortgage industry, despite the COVID-19 global health crisis essentially shutting down the U.S. economy in March and forcing personnel into remote work environments,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “A surge in housing and mortgage demand, record-low mortgage rates, and widening credit spreads translated into soaring net production profits that reached their highest levels since the inception of MBA’s annual report in 2008.”The Annual Mortgage Bankers Performance Report found that the average production volume was $4.5 billion (16,198 loans) per company in 2020, up from $2.7 billion (10,411 loans) per company in 2019. On a repeater company basis, average production volume was $4.4 billion (15,669 loans) in 2020, up from $2.5 billion (9,430 loans) in 2019. For the mortgage industry as whole, MBA estimates production volume at $3.83 trillion in 2020—the highest annual volume ever reported—up from $2.25 trillion in 2019.Profits on the production side compensated for the servicing losses. Including both production and servicing operations, 99% of the firms posted overall pre-tax net financial profits in 2020, compared to 92% of firms in 2019 and only 69% of firms in 2018.”In early 2021, we are already seeing declines in pipeline volume—particularly refinance volume—as mortgage rates have risen in the first quarter,” said Walsh. “Also, secondary marketing income has dropped from last year’s highs, as credit spreads have tightened. Mortgage companies that can adjust quickly to changing market conditions and are able to harness still robust purchase demand are best poised for a successful 2021.”Walsh noted that the driver of production profitability in 2020 was production revenue, led by strong secondary marketing gains. Historically, production expenses drop when volume increases, but per-loan production expenses rose in 2020, as companies offered signing bonuses, incentives, overtime, and other compensation to address capacity constraints and meet mortgage demand. Furthermore, rising loan balances meant large sales commissions, often earned based on a percentage of the loan amount.Click here for more on the MBA’s Annual Mortgage Bankers Performance Report. Annual Mortgage Bankers Performance Report independent mortgage banks (IMBs) Marina Walsh Mortgage Bankers Association (MBA) 2021-04-13 Eric C. Peck Previous: Affordable Housing-Related Reforms Worth Considering Next: Caliber Sold to New Residential for $1.7 Billion Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Eric C. Peck Tagged with: Annual Mortgage Bankers Performance Report independent mortgage banks (IMBs) Marina Walsh Mortgage Bankers Association (MBA) Related Articles in Daily Dose, Featured, Journal, Newscenter_img  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com. Servicers Navigate the Post-Pandemic World 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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 Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

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