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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Council awarded 300 thousand euro for cycle routes and walkways

first_imgNewsx Adverts RELATED ARTICLESMORE FROM AUTHOR Google+ Donegal County Council is to receive over €300,000 from the Department of Transport for Smarter Travel in the County.Through the scheme cycle routes and walkways will be developed throughout the County.The €302,000 will be shared between 10 towns.Senator Jimmy Harte said the Council would announce what towns would get the funding soon:[podcast]http://www.highlandradio.com/wp-content/uploads/2011/07/jimh1ptravelm.mp3[/podcast] 75 positive cases of Covid confirmed in North Council awarded 300 thousand euro for cycle routes and walkways Previous articleDonegal building firm goes bustNext articleOne year since Inishowen crash claimed 8 lives News Highland Man arrested on suspicion of drugs and criminal property offences in Derry Twitter 365 additional cases of Covid-19 in Republic By News Highland – July 11, 2011 Gardai continue to investigate Kilmacrennan firecenter_img Facebook Pinterest Pinterest WhatsApp WhatsApp Twitter Further drop in people receiving PUP in Donegal Main Evening News, Sport and Obituaries Tuesday May 25th Google+ Facebooklast_img read more

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Wimbledon 2017: Marin Cilic into final with hard-fought win over Sam Querrey

first_imgCroatian Marin Cilic reached his first Wimbledon final with a hard-earned 6-7(6) 6-4 7-6(3) 7-5 win over resilient American Sam Querrey on Friday.Fans who may have been disappointed that neither Rafa Nadal or Andy Murray featured in the last four were given plenty of compensation by a high-quality match lasting just under three hours.Cilic will face seven-times Wimbledon champion Roger Federer  on Sunday.Querrey, looking to be the first American to reach the final at the All England Club since Andy Roddick in 2009, had played three five-set games to reach the semi-final stage, including his quarter-final win over Murray, and he could well have taken the Croat into a decisive set.But serving to save the match, he double-faulted and made two unforced errors before Cilic sealed victory with a forehand winner on match point.The 28-year-old raised his arms to the sky in triumph as he celebrated becoming the first Croatian to reach the men’s singles final at Wimbledon since Goran Ivanisevic in 2001.The 2014 U.S. Open winner has been beaten in the quarter-final stage in his last three Wimbledon appearances but few would question the seventh seed’s right to challenge for the title on Sunday after this display.It was clear from the start that it was going to be a tight contest with neither player able to get even a sniff of a break in the first set.Cilic, though, took a 4-1 lead in the tiebreak but lost five straight points as he allowed the American back into the battle.advertisementAt 6-6 there was a delay of over three minutes when a spectator fell in the stands and had to receive attention from stewards before being led out.When play resumed Cilic produced two dreadful unforced errors with his backhand to hand the American the set and give himself plenty of work to do.At 3-3 in the second Cilic struck, a superb backhand winner down the line on break-point giving him the advantage in the set that he never looked like losing.When the Croat broke to go 2-1 up in the third set, the momentum seemed to have shifted decisively to Cilic with Querrey looking weary.But the American dug deep and came out fighting – immediately breaking back and holding firm to force another tiebreak.The contest was on-serve at 4-3 until Querrey’s errors caused him to suffer two mini-breaks and the Croat took his chance.Cilic sensed his moment but it was not until late in the fourth, with Querrey serving to stay in the match, that he grabbed it to book his place in the final.last_img read more

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‘Time to Bring Dementia Out of the Shadows’ – Dr. Govia

first_img “Persons living with dementia are not crazy, senile, or gone off… . People living with dementia and their carers are not to be shunned or regarded as second-class citizens. We need more safe spaces,” she said. Story Highlights Dr. Govia was addressing the launch of Senior Citizens’ Week by the National Council for Senior Citizens (NCSC) on September 21 at The Jamaica Pegasus hotel. Executive Director of Alzheimer’s Jamaica, Dr. Ishtar Govia, says it is time to “bring dementia out of the shadows” in order to eliminate the stigma associated with the condition. Executive Director of Alzheimer’s Jamaica, Dr. Ishtar Govia, says it is time to “bring dementia out of the shadows” in order to eliminate the stigma associated with the condition.“Persons living with dementia are not crazy, senile, or gone off… . People living with dementia and their carers are not to be shunned or regarded as second-class citizens. We need more safe spaces,” she said.Dr. Govia was addressing the launch of Senior Citizens’ Week by the National Council for Senior Citizens (NCSC) on September 21 at The Jamaica Pegasus hotel.Dementia is an overall term that describes a group of symptoms associated with a decline in memory or other thinking skills severe enough to reduce a person’s ability to perform everyday activities. Alzheimer’s disease accounts for 60 to 80 per cent of dementia cases globally.Dr. Govia explained that the brain functioning of persons living with dementia, such as those living with Alzheimer’s disease, gets progressively worse, causing them to have problems with memory, thinking, reasoning skills, behaviours, and mood.She said that a coordinated national response to dementia is critical for Jamaica, given the projected exponential increase in persons living with the condition in the Caribbean region.She said studies suggest that there may be up to 41,000 Jamaicans living with dementia, an increase from an estimated 19,000 in 2010.She noted that a stakeholder workshop held in July, which focused on mapping the dementia care landscape in Jamaica, highlighted the need for increased national research, awareness and training around dementia.The session was organised by Alzheimer’s Jamaica, in collaboration with the Strengthening Responses to Dementia in Developing Countries (STRiDE) research project, and involved more than 50 stakeholders, including persons living with dementia and their carers, and representatives from the public and private sectors, and civil society.Dr. Govia said data from the stakeholder workshop and dementia care mapping exercise found that stigma reduction, multisectoral collaboration, protective policies, increased access to care and affordable medication are considered key for improving the lives of persons living with dementia in Jamaica.Also highlighted was the need for greater sensitisation and increased services in sectors such as banking, law enforcement and the health sector.Dr. Govia said Alzheimer’s Jamaica will be continuing its work with the STRiDE project to develop and deliver stigma-reduction programmes; and will also commence qualitative data collection focused on the cost of care provided by family members.The organisation will also, in early 2019, launch its intergenerational innovations competition, which will target schools and encourage young persons to apply their creativity to the challenges facing people living with dementia and their carers.last_img read more

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