Fed’s Labor Market Index Shows Signs of Recovery In September

first_img Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Fed’s Labor Market Index Shows Signs of Recovery In September About Author: Tory Barringer Sign up for DS News Daily  Print This Post Fed’s Labor Market Index Shows Signs of Recovery In September 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 After slowing for the fourth straight month in August, the Federal Reserve’s gauge of conditions in the labor market made a slight recovery in September.The Fed’s labor market conditions index, which the central bank said it will now release on a monthly basis, added 2.5 points in September after increasing only 2 points in August—its lowest pace of growth in 13 months.As a broad measure of the market, the Fed’s index includes a number of indicators that go beyond just the national unemployment rate, including average hourly earnings, hiring rates, and labor force participation, among others. It has been cited by Fed researchers as a more comprehensive tool for the central bank’s policymakers to use when considering their next move, such as ending bond purchases—a likely development next month—or raising interest rates, which they’re expected to do by the middle of 2015.After slowing down in January, the index accelerated through much of the year’s first half, posting an improvement of 4.9 points in March before hitting peak growth of 7.1 points in April as the economy started a streak of strong monthly payroll gains.The latest increase comes as the labor market reportedly added 248,000 new jobs, helping to bring the unemployment rate down to 5.9 percent.At the same time, however, the labor force participation rate continued to drop as more Americans gave up on looking for work. According to the government’s, numbers, the national U-6 unemployment rate—which includes people marginally attached to the work force and those working part-time for economic reasons—is 11.8 percent. Tagged with: Federal Reserve Jobs Labor Market Index Unemployment Share Save Demand Propels Home Prices Upward 2 days ago Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington’s student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News’ sister publication, MReport, which focuses on mortgage banking news. center_img The Best Markets For Residential Property Investors 2 days ago Federal Reserve Jobs Labor Market Index Unemployment 2014-10-06 Tory Barringer The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago October 6, 2014 964 Views Previous: Texas Still Among Nation’s Lowest in Foreclosure Inventory Next: FHFA Extends Comment Period for Proposed FHLB Rule Until January 12 in Daily Dose, Featured, Government, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Exposure to Risk is Declining for Fannie Mae and Freddie Mac—But So Are Revenues

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Seven years after the housing market crashed, serious delinquency rates for most mortgage portfolios are at or near pre-recession levels, and the GSEs are no exception.The GSEs’ exposure to credit risk from mortgages originated during the years of the housing bubble continues to be “significant but declining,” according to the FHFA’s Performance and Accountability Report for Fiscal Year 2015. But in addition to experiencing a decline in exposure to credit risk, the GSEs have also experienced significantly declining revenues.As of the end of FY 2015, only 1.59 percent of residential single-family mortgages backed by Fannie Mae were seriously delinquent—that is, 90 days or more overdue or in foreclosure—while 1.46 percent of mortgages insured by Freddie Mac fell in the same category. Both numbers are below their 2008 levels—and most of the seriously delinquent mortgages that remain in the GSEs’ single-family portfolio were originated from 2005 to 2008.“Beginning in 2008, both Enterprises made significant changes to strengthen their underwriting and eligibility standards, which have improved the credit quality of their guarantee books of business and overall credit performance,” FHFA said in the report.The GSEs made significant progress in winding down their REO portfolios, which consisted of single-family properties they acquired through foreclosure of through a deed-in-lieu of foreclosure. According to FHFA’s report, the combined single-family REO portfolios of Fannie Mae and Freddie Mac declined from 121,730 units at the end of FY 2014 down to 78,738 units at the end of FY 2015.The decline in revenues that has come along with the decline in exposure to credit risk has been swift and solid, which caused even the GSEs’ boss, FHFA Director Mel Watt, to declare that Fannie Mae and Freddie Mac could possibly need another taxpayer-funded bailout. In 2013 (just one year after returning to profitability following the $187.5 billion bailout in 2008), the GSEs pulled in a combined net income of $132.7 billion, which was a record for one year. In 2014, the combined net income of the GSEs plummeted to $21.9 billion due to the absence of nonrecurring items, such as various legal settlements and the reversal of valuation allowances associated with deferred tax assets.Through the first nine months of 2015, the GSEs have netted a combined $12.7 billion, which is off the pace of 2014’s net income of $21.9 billion.“While risks from the Enterprises’ mortgage-related investment portfolios are declining as the size of their portfolios shrinks, revenues from these portfolios are also shrinking,” FHFA said in the report. “These investment portfolios continue to expose the Enterprises to interest-rate risk. Accounting differences for these financial assets and liabilities, including derivatives, give rise to significant earnings volatility when interest rates fluctuate, in part because of how mark-to-market requirements are applied.”According to the report, declines in interest rates and a flattening of the yield curve in FY 2015 contributed to fair value losses in three out of four quarters for Freddie Mac—and a net loss of $475 million for Freddie Mac in Q3 2015.Since the conservatorships began, Fannie Mae and Freddie Mac have returned a combined $239 billion in dividends to Treasury—$51.5 billion more than they received in the taxpayer bailout back in 2008.While both parties have expressed the urgency of ending the FHFA’s conservatorship of Fannie Mae and Freddie Mac, which is now more than seven years old, but top Obama Administration officials such as Treasury Secretary Jack Lew have stated that the GSEs will not be recapitalized and released during the final 14 months of Obama’s presidency. Monday’s House vote on legislation to cap the pay of the CEOs of Fannie Mae and Freddie Mac at $600,000 per year—legislation that the White House supports and Obama is expected to sign—all but assure the conservatorships will continue into 2017.Click here to see the FHFA’s complete Performance and Accountability Report for FY 2015. The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Fannie Mae FHFA Freddie Mac 2015-11-17 Brian Honea Home / Daily Dose / Exposure to Risk is Declining for Fannie Mae and Freddie Mac—But So Are Revenues 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. Previous: Broker Brain Invites Webinar Attendees to ‘Let Us Do the Thinking’ Next: Fed Chairman Yellen Urges Congress to Reject Fed Reform Bill About Author: Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago November 17, 2015 1,320 Views Servicers Navigate the Post-Pandemic World 2 days agocenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News, Secondary Market Related Articles Exposure to Risk is Declining for Fannie Mae and Freddie Mac—But So Are Revenues The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily  Print This Post Share Save Demand Propels Home Prices Upward 2 days ago Tagged with: Fannie Mae FHFA Freddie Maclast_img read more

Is the CFPB Meting Out Justice or Inflicting Abuse?

Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: CFPB Consumer Financial Protection Bureau Fines and Penalties Data Provider Black Knight to Acquire Top of Mind 2 days ago March 24, 2016 1,154 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save Subscribe Home / Daily Dose / Is the CFPB Meting Out Justice or Inflicting Abuse? Is the CFPB Meting Out Justice or Inflicting Abuse?  Print This Post Related Articles Richard CordrayThe controversial Consumer Financial Protection Bureau (CFPB), which was launched in July 2011 from the equally controversial Dodd-Frank Wall Street Reform and Consumer Protection Act, is nearing its fifth birthday.In slightly less than five years, the Bureau has handed out more than $5 billion in fines to companies who they deemed have violated federal consumer financial protection laws. A large chunk of that has been handed out to financial firms for violations in the mortgage servicing space; in December 2013, the Bureau ordered Ocwen Financial, the nation’s largest non-bank servicer, to pay $2 billion in consumer relief to underwater borrowers for alleged servicing errors that pushed borrowers into foreclosure.Whether you think the CFPB is meting out justice and protecting consumers from abusive financial practices or if the Bureau is the one that is actually inflicting the abuse generally depends on what side of the fence you’re on.If you’re on the Democratic side, you are probably among those who see the Bureau as a triumph for all that is good in the world of protecting consumers. In March 2015, House Financial Services Committee Ranking Member Maxine Waters (D-California) told the committee, “Mr. Chairman (Jeb Hensarling, R-Texas), your party pretends to care about the huge challenges of income inequality and minority access to credit, vilifying this agency as ‘hurting the very people we are trying to help.”In November, presidential hopeful Hillary Clinton tweeted, “The CFPB protects borrowers from unfair and deceptive Wall Street practices. Attacks against it are unfounded and outrageous.” Also in November, Sen. Elizabeth Warren (D-Massachusetts), the Bureau’s chief architect, tweeted, “So here’s my message to Wall Street and their GOP buddies: We’re ready to fight back to protect the CFPB.”If you’re on the Republican side, chances are you see the CFPB as an overreaching government bureaucracy with a lack of transparency and accountability. Both of the aforementioned Clinton and Warren tweets were sent in response to a TV commercial that ran during the nationally-televised GOP debate. The ad was sponsored by the American Action Network, a right-leaning Washington, D.C.-based advocacy group, and it painted the CFPB as a communist organization that even included a backdrop of gigantic red-shaded banners of CFPB Director Richard Cordray and Warren.Since the Bureau opened its doors, Republicans have asserted that the Bureau’s overreach has caused increased compliance costs to businesses, which has in turn resulted in costlier financial products for consumers. Critics of the Bureau say this process harms the very consumers it aims to protect.Last week in a House Financial Services Committee hearing in which Cordray testified, Hensarling told the committee that “Congress has made Mr. Cordray a dictator.”“Apologists for the Bureau, along with Mr. Cordray, frequently cite the tens of millions of dollars of fines they have imposed as proof they are protecting consumers,” Hensarling said. “But the Bureau operates as legislature cop on the beat, prosecutor, judge and jury all rolled into one. Fines imposed in such an abusive structure tell us nothing about justice or consumer welfare. Nothing.”Republicans have introduced several bills in an attempt to reform the CFPB, notably by Rep. Sean Duffy (R-Wisconsin) and Randy Neugebauer (R-Texas), but none have made any headway.Should a Republican be elected president, what will be the future of the CFPB? Will it continue as is, or will the president make wholesale changes? 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. Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago CFPB Consumer Financial Protection Bureau Fines and Penalties 2016-03-24 Brian Honea About Author: Brian Honea The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Housing Advocates’ Applause of Trust Fund Contribution Comes With Caution Next: DS News Webcast: Friday 3/25/2016 Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago read more

Subcommittee: Arbitration Ban Raises Costs for Consumers

first_imgSign up for DS News Daily About Author: Brian Honea Previous: FHA Proposes Enhancements to HECM Program Next: DS News Webcast: Thursday 5/19/2016 Arbitration Clauses CFPB Consumer Financial Protection Bureau House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit 2016-05-18 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles The Subcommittee determined that a May 2015 study by the CFPB which showed more favorable outcomes for consumers who use arbitration as opposed to class action lawsuits is incomplete and ignores important information. The Subcommittee also pointed out that class action suits give little benefit to consumers while providing a windfall to trial lawyers. In the CFPB’s own study, the Subcommittee noted that 13 percent of class action lawsuits that actually benefited consumers had an average payout of just $32 while trial lawyers earn an average of $1 million per settled case—about 31,000 times the average payout.“The CFPB’s study tried to provide that businesses do not pass on cost savings from arbitration to consumers and employees, but that attempt was unpersuasive,” Pincus said. “As the academics who reviewed the CFPB’s study concluded, the CFPB’s findings on this point were plagued by ‘theoretical problems’ and ‘technical failures,’ and they fly in the face of ‘[b]asic economic theory,’ which ‘predicts that competition forces firms to pass on to consumers [or employees] at least a portion of any cost decrease.”Other determinations by the Subcommittee on Wednesday include: The Bureau’s own study found that consumers are more likely to obtain decisions based on the merits in arbitration as opposed to class actions, which almost always result in settlements before they can go to trial. Also, according to the CFPB’s study, arbitration is up to 12 times faster than litigation and costs about half as much.Dong Hong, a witness at the hearing, said, “Due in part to consumers paying little to nothing for arbitration proceedings, they recover significantly higher sums than they do through class actions—$5,389 vs. $32.35 average recovery. In contrast, litigation can be complicated, time-consuming and requires a lawyer to navigate the process. In addition, many consumer claims may be too small to attract contingency fee lawyers.”Neugebauer tweeted about the hearing on Wednesday, “My friends on the other side of the aisle asked a trial lawyer to come speak in favor of the CFPB’s Arbitration Rule. I rest my case.” The Best Markets For Residential Property Investors 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Arbitration Clauses CFPB Consumer Financial Protection Bureau House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit Subcommittee: Arbitration Ban Raises Costs for Consumers May 18, 2016 1,035 Views Home / Daily Dose / Subcommittee: Arbitration Ban Raises Costs for Consumers The House Subcommittee on Financial Institutions and Consumer Credit determined in a hearing on Wednesday that the CFPB’s proposed rule to ban arbitration clauses in business contracts will result in higher costs to consumers and less access to financial products.Witnesses at the hearing included Dong Hong, VP, Regulatory Counsel, Consumer Bankers Association; Jason Scott Johnston, Henry L. and Grace Doherty Charitable Foundation Professor, University of Virginia Law School; Andrew Pincus, Partner, Mayer Brown LLP, on behalf of the U.S. Chamber of Commerce; and F. Paul Bland Jr., Executive Director, Public Justice.The Subcommittee ultimately decided that consumers would be worse off if the ban on arbitration clauses is enacted because businesses would pass litigation costs onto consumers and divert resources away from new financial products and services.“For example, arbitration produces a significantly higher recovery for individual consumers and has a shorter resolution timeline for recovery. In testimony before this Committee, the agency has stated that banning the use of class action waivers in arbitration agreements, the main provision in the Bureau’s rule, would achieve a primary Bureau objective—‘to give consumers their day in court.’ Nothing could be further from the truth,” said Rep. Randy Neugebauer (R-Texas), Chairman of the Subcommittee. “I fear a single, unelected bureaucrat has directed agency action that is arbitrary and capricious. The Bureau has failed to articulate a rational connection between the facts found in its May 2015 study and the agency action before us today.” The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  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. Demand Propels Home Prices Upward 2 days agolast_img read more

Housing Scorecard Indicates Notable Market Progess

first_img in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 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. Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Post Foreclosures HUD HUD scorecard 2016-12-08 Kendall Baer Servicers Navigate the Post-Pandemic World 2 days ago Previous: New York Legislation May Expedite Foreclosure Proceedings Next: Ocwen Extends Corporate Debt Maturities to 2020 and 2022 Subscribe About Author: Kendall Baer Related Articles Tagged with: Foreclosures HUD HUD scorecardcenter_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 Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago The Department of Housing and Urban Development (HUD) recently released its monthly Housing Scorecard, which indicated that despite an increase in foreclosures for the month of October, the housing market is still on the path of progress.“Looking back on November, we witnessed notable progress among key indicators: a continued increase in existing home sales and an uptick in home values,” says HUD’s Katherine O’Regan. “While housing is being reenergized, there is still a need to support programs that help more hardworking, responsible Americans recover from the Great Recession.”According to the scorecard and data from ATTOM Solutions, 43,352 U.S. properties in October started the foreclosure process, which was an increase of 25 percent from September but still a decrease of 11 percent from 2015.Additionally, HUD reports that the data indicates 34,288 U.S. properties in October completed foreclosure. This was an increase of 25 percent month-over-month but, again, a decline from the year prior, specifically of 6 percent.“Foreclosure activity has been volatile in recent months as states with a substantial pool of foreclosure inventory move to reduce the backlog,” adds the report.To combat the risk of foreclosure, HUD reports that over 10.9 million mortgage modifications and other forms of mortgage assistance arrangements were completed between April 2009 and the end of October 2016.The scorecard reports that through the Making Home Affordable Program over 2.7 million homeowner assistance actions have taken place. HUD’s adds that this includes over 1.6 million permanent modifications through HAMP. Further, the Federal Housing Administration (FHA) has offered nearly 3.4 million loss mitigation and early delinquency interventions through October, according to HUD.“These Administration programs continue to encourage improved standards and processes in the industry, with lenders offering families and individuals more than 4.8 million proprietary modifications through September,” says HUD. “Although there is good news overall, the Administration remains committed to helping more Americans realize their dream of home ownership through an improving economy and new programs that will provide greater access to credit.”To view the full November HUD Housing Scorecard, click HERE. Housing Scorecard Indicates Notable Market Progess Share Save Home / Daily Dose / Housing Scorecard Indicates Notable Market Progess Sign up for DS News Daily December 8, 2016 1,563 Views last_img read more

The Best is Yet to Come

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Featured, Market Studies, News Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Market Studies Redfin Home / Featured / The Best is Yet to Come Sign up for DS News Daily About Author: Mirasha Brown Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Subscribe The new year is expected to deliver the “fastest growing housing market on record,” according to Redfin. Home price growth and demand will contribute to the expanding housing market, despite rising affordability concerns. Median home sale prices are expected to increase 5.3 percent year over year compared to the estimated 5.5 percent in 2016. Existing-home sales are predicted to increase 2.8 percent in 2017, compared to the estimated 3.4 percent increase this year. Due to strong homebuyer demand and steady price increases, the housing market will see an increase in home sales, Redfin reported.Affordable homes on the median income in the nation’s largest cities will continue to decrease in 2017, making affordability a deciding factor in whether buyers should sell their homes to refinance for a higher mortgage or keep their current mortgage rate. The report predicts that rising mortgage rates will act as an incentive for people to stay in their homes and hold onto a low mortgage payment, or rent their homes out instead of selling to make a profit. This will result in a “permanent shortage of starter homes for sale, even as the inventory for expensive homes improves next year,” according to Redfin. A Redfin spokesperson told DS News that homeowners will be hesitant in purchasing a new home due to rising mortgage rates. “Many homeowners who may have considered purchasing a move-up home will hold back because they’re locked into their current mortgage rate below 4 percent. We think that this will lead to a shortage of starter homes for sale, which will make the search for first-time homebuyers on the lower end of the price spectrum increasingly competitive. For buyers on the high end of the market, competition will be cooler as inventory in that sector continues to increase. Unfortunately for first-time buyers without the capital yet to reach that end of the market, they’ll have a small number of homes to choose from within their price range.” A lack of housing inventory hindered first-time buyers from purchasing homes in 2016. The report indicates that housing inventory will increase approximately 1.7 percent year over year in 2017. Home sales would have been stronger if there was more inventory available to meet the demand of homebuying millennials. Redfin predicts that a shortage of supply will keep sales growth weak in 2017.Nela Richardson, Chief Economist at Redfin, expects the incoming administration to stimulate growth and positive change in the economy. “Next year, the new administration will lead a shifting U.S. economy,” she said. “Baby boomers will become less economically relevant as millennials continue to come of home-buying age. Superstar cities will create much of the job growth, pushing wages in those cities up. Yet the percentage of homes in America’s largest cities that are affordable on the median income has declined the past two years and will continue to fall in 2017. Sales would be even stronger if there were more starter homes on the market to meet demand from millennial homebuyers. We expect to see more homes built in second-tier cities and more millennial homebuyers moving from the coasts to smaller and inland markets where they can find affordable starter homes.”To view the full report, click here. December 13, 2016 1,353 Views Previous: Winner Announced for HUD Vacant Loan Sale Next: Had Enough? Stage is Set for Foreclosure Declines Market Studies Redfin 2016-12-13 Kendall Baer Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best is Yet to Come Is Rise in Forbearance Volume Cause for Concern? 2 days ago Mirasha Brown is a graduate of Florida A&M University and is pursuing a masters degree at Syracuse University. Born and raised in Florida, she has contributed to public relations and marketing campaigns for Rent The Runway and Billboard. She is a communications specialist with The Five Star and a contributing writer to DS News and the MReport. last_img read more

D.C.’s Address Confidentiality Act

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News, Servicing D.C.’s Address Confidentiality Act  Print This Post Home / Daily Dose / D.C.’s Address Confidentiality Act Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Share Save January 11, 2019 2,040 Views The Best Markets For Residential Property Investors 2 days ago District of Columbia Lenders Servicers 2019-01-11 John Ansell John A. Ansell III, is partner at Rosenberg & Associates, LLC. Born in Andrews AFB, Maryland, Ansell holds a Bachelor of Arts degree from the University of Maryland (1994) and a Juris Doctor from the University of Pittsburgh School of Law (2001). Ansell’s practice focuses primarily in the areas of real estate, settlement, foreclosure and default litigation legal services, and he oversees the firm’s appellate practice. Ansell is admitted to the state courts in Maryland, Virginia, and the District of Columbia, the United States District Court for Maryland, United States District Court for the District of Columbia, and the Eastern and Western Districts for the United States District Court for Virginia. Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Previous: Is the Housing Market Recession Ready? Next: TMS Sells Originations Business to AmeriSave Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: District of Columbia Lenders Servicers The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: John Ansell Editor’s note: This feature originally appeared in the January issue of DS News, out now.The District of Columbia recently passed legislation that may affect the ability of servicers and lenders to adequately assess title on certain properties in Washington, D.C. The new statute—dubbed the Address Confidentiality Act of 2018, which became effective on October 1, 2018—is designed to protect the victims of domestic violence.According to the terms of the Act, if an individual applies for the program and is certified as a victim of stalking, domestic violence, human trafficking, or a range of other sexual offenses, the individual will be issued an identification card with a substitute address. The substitute address will be a mailbox to which mail can be sent, and from which the office that administers the program will forward mail to the program participant’s actual address. More importantly from a title perspective, a participant in the program can submit a request to any D.C. government office or agency to remove all publicly accessible references to their actual address. This means that a participant may have their name removed from all publicly available land records, tax records, or court records. This presents obvious problems for the title industry, as well as to loan originators and servicers.Also problematic at this point is the fact that D.C. has not provided crucial details of such activity. Namely, there is no word yet whether the redacted information will simply be absent or if there will be an indication that the information is being withheld pursuant to this program. Thus, a title search may come back with documents simply missing—e.g., a deed or deed of trust simply not appearing in a title search, or a lack of a tax record appearing when performing an escrow analysis. Alternatively, the record might come back with some indication that the information was being omitted, with or without explanation.The District of Columbia has not yet provided any answers as to how such matters will be treated. Further complicating the issue is the fact that, as currently written, the statute does not allow the participant to selectively direct the release of their information. Their only choice appears to remove themselves entirely from the program—hardly the route that someone fearing for their safety would choose. Overall, the potential implications of this statute for title are enormous, and until D.C. provides more information as to how such matters will be handled, the state of title in D.C. will remain uncertain. Subscribelast_img read more

Real Estate and Criminal Activity: Creating the Perfect Storm

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily  Print This Post Home / Commentary / Real Estate and Criminal Activity: Creating the Perfect Storm Share Save Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: email Fraud mortgage Property real estate Technology About Author: Kosta Ligris Governmental Measures Target Expanded Access to Affordable Housing 2 days ago email Fraud mortgage Property real estate Technology 2019-02-08 Radhika Ojha Related Articles Technology has contributed to incredible innovations that have changed the way we work and live. But just like a coin with two sides, there are always risks associated with any behavioral evolution. We touch technology every day and it has made us more efficient, more connected, and more available than ever. The younger generation is so connected to devices that they tend to avoid interacting with others over the phone or in person. We are evolving into a culture with new terms such as “data snacking” or “info-snacking”–essentially we are processing so much information that our attention span keeps narrowing to the point that data, information, and communications are processed in seconds and minutes. In fact, Microsoft concluded years ago on a widely publicized study that the average American’s attention span is eight seconds. I am not entirely sure I agree with that, but I am a firm believer that our attention spans keep getting shorter. So what types of implications does this growing reliance on technology pose to the real estate industry? Real estate professionals work hard. As a matter of fact, I tell people that this isn’t a career, it is a lifestyle. We take calls at night, put deals together on Sunday, speak at events on Saturday morning, and excuse ourselves to talk to clients in the middle of family functions. It never ends–and the criminals are on to us. They know we rely on mobile devices, skim emails, and that we are super busy on Friday. Wire scam emails create a sense of urgency; sometimes they have poor grammar, they tell us they will be tied up with a client and can’t talk on the phone. It all makes sense to us because we are constantly working and running to keep up. I have heard stories of fraudsters actually calling a title company pretending to be an angry seller looking for a wire. Sound familiar? I have seen them circulate a draft settlement statement that not only looked real—but was a decent representation of the transaction that the fraudster had hacked. Our technology, short attention span, and obsession for customer service have created the perfect storm for a frightening rise in criminal activity in real estate. We want to respond to emails faster than our competitors, we want to get a wire sent and move on to the next file, and all along we are processing information at unnatural and unsustainable speeds. Criminals know this – and that is why only a real fool would risk robbing a bank. The payout potential of sitting at a computer sorting through data online and in the dark web is the new “stick-up.” What can we do? Slow down. Take a minute to verify the sender of an email. Look for suspicious behaviors and activity. Fight back by disarming criminals from their weapon of choice—our constant need to move fast. When I present on cybersecurity and real estate fraud, the prop I bring with me is a telephone. The audience laughs at the presenting of a device that makes “phone calls” where you can talk to other humans on the other end. But who gets the last laugh when fraud is perpetrated through these devices? center_img Previous: Back From the Brink of Foreclosure Next: The Week Ahead: Getting to Know FHFA Nom Mark Calabria February 8, 2019 2,420 Views in Commentary, Daily Dose, Featured, News, Technology Subscribe Servicers Navigate the Post-Pandemic World 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 The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Kosta Ligris is an experienced entrepreneur and CEO and Founder of the Ligris Companies, a collection of professional services, real estate, consulting, and tech companies. Ligris has represented and consulted for some of the nation’s largest banks and real estate companies. He also mentors, advises and invests in startups in fintech, proptech, and blockchain that are disrupting the real estate and title insurance verticals. Real Estate and Criminal Activity: Creating the Perfect Stormlast_img read more

Watch as HUD Secretary Carson Sets Sights on Private Sector

first_imgHome / Daily Dose / Watch as HUD Secretary Carson Sets Sights on Private Sector Tagged with: Ben Carson HOUSING HUD HUD Secretary mortgage Newsmax President Trump The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, News Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily March 4, 2019 1,242 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Rachel Williams Watch as HUD Secretary Carson Sets Sights on Private Sector Previous: Owning vs Renting in the Largest U.S. Metros Next: Altisource Launches New FHA Product On Monday, HUD Secretary Dr. Ben Carson, spoke with Newsmax regarding HUD Opportunity Zones and Tax incentives as well as his future with the department. “I will certainly finish out this term and I will always be in interested in America being successful . . . I would be interested in returning to the private sector because I think you have just as much influence maybe more,” Carson told reporter John Gizzi.Watch the full interview here.Also, learn more about your opportunity to hear from Dr. Carson live at the 2019 Five Star Government Forum.center_img Share Save Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Ben Carson HOUSING HUD HUD Secretary mortgage Newsmax President Trump 2019-03-04 Rachel Williams Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Rachel Williams attended Texas Christian University (TCU), where she graduated with Magna Cum Laude with a dual Bachelor of Arts in English and History. Williams is a member of Phi Beta Kappa, widely recognized as the nation’s most prestigious honor society. Subsequent to graduating from TCU, Williams joined the Five Star Institute as an editorial intern, advancing to staff writer, associate editor and is currently the editor in chief and head of corporate communications. She has over a decade of editorial experience with a primary focus on the U.S. residential mortgage industry and financial markets. Williams resides in Dallas, Texas with her husband. She can be reached at [email protected] Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Ask the Economist: Millennial Demand and Affordability Issues

first_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Ask the Economist: Millennial Demand and Affordability Issues As Deputy Chief Economist for First American Financial Corporation, a provider of title insurance, settlement services, and risk solutions for real estate transactions, Odeta Kushi prepares analysis, commentary, and forecasts on trends in the real estate and mortgage markets. Kushi also conducts research around demographic trends, millennials, and homeownership, as well as monitoring and analyzing quarterly surveys and economic data related to the housing industry. DS News spoke with Kushi on trends impacting the real estate market, from millennials to inventory shortages.You’ve previously discussed how the 2017 Tax Cuts and Jobs Act impacted home prices. What recent legislation may impact affordability and sales through the rest of 2019?Hard to say, but the reality is the impact of rising tenure length on the housing market is likely to be more important than any recent legislation. Tenure—the length of time a homeowner lives in their home—has increased dramatically in the years following the recession and is now at a record high of 11 years. Since existing-homes are the vast majority of supply to the housing market, rising tenure means fewer and fewer homes available to buy, just as millennials enter their home-buying years.What impact are millennial buyers and other first-time buyers having on the housing market?The oldest millennials are just now entering their early to mid-30s. They’ve reached an age where marriage and having children are more likely, which are the primary drivers of homeownership. Recently, owned household formation has trended upward at the expense of rental households, indicating that greater numbers of renters are transitioning into homeownership. Indeed, as of February 2019, 50% of all purchase mortgages originated by Fannie and Freddie went to first-time home buyers. This is 7.0% higher than five years ago, and 1.0% higher than one year ago.Rising demand has generated rapid house price appreciation for starter homes. According to Zillow data, homes in the bottom third of house prices (starter homes) have gained 61.3% in value over the past five years, while inventory has fallen 26.4%. When a wave of potential first-time home buyer demand is met with low supply, the result is declining affordability.What is the status of housing inventory across the country? Is there enough to meet demand?In 2018, we gained 1.2 million new households but built less than 900,000 new houses, condos, and apartments. New household formation is expected to grow as more millennials enter their prime home-buying years, and baby boomers are living longer and more independently than ever. For more than a decade, home building has not kept up with the demand for shelter, creating a housing supply deficit that will prove difficult to reduce significantly.What are some of the markets poised for homeownership growth this year?Across the nation, homebuyers are enjoying greater homebuying power due to lower-than-anticipated mortgage rates, rising wages, and a relative slowdown in house price appreciation. As the surge of millennial demand continues in 2019, millennial first-time home buyers may want to consider cities that offer a greater supply of affordable homes. According to our First-Time Home Buyer Outlook Report, which looks at the share of homes for sale that are affordable for the median renter across 44 markets in the U.S., cities such as Memphis, Oklahoma City, and Pittsburgh are areas where millennial first-time home buyers may find the best outlook for homeownership.Besides inventory levels, what else is hindering affordability nationally, and where has affordability increased the most in recent months?According to the First American Q2 2019 Real Estate Sentiment Index, 40% of survey respondents indicated that affordability is the primary obstacle to becoming a homeowner. This is not surprising as house prices nationally continue to grow, albeit at a slower pace in 2019. The next highest-rated obstacles to becoming a homeowner were the limited inventory of homes they like (30%) and down payment (22%). The main burden, affordability, confirms the strong sellers’ market conditions from 2018 have continued in many markets in early 2019, as demand outpaces supply and prices continue to rise.However, thanks to rising house-buying power driven by lower mortgage rates and increasing wages, affordability improved in 43 of the 44 markets we track in our Real House Price Index in April compared with the previous month, and affordability improved in 18 markets on a year-over-year basis. The markets which saw the most affordability growth on an annual basis were: San Jose, California; Seattle; Portland, Oregon; San Francisco; and Los Angeles. These markets benefited from low mortgage rates and increasing income, but also saw a slowdown in house price appreciation and an increase in inventory.What does your day-to-day role look like as Deputy Chief Economist at First American?I certainly wear many hats. I start my day very early on the commute to the office by keeping a pulse on housing and economic news and engage in social media discourse with my fellow housing economists and other economic experts. The rest of my day usually consists of working with data to identify interesting insights about the housing market, writing up those conclusions and translating them into data visualization graphics, and responding to questions from national, regional and industry trade media. It’s my personal mission and passion to help people understand housing, mortgage markets, and the economy at large. The Best Markets For Residential Property Investors 2 days ago Ask the Economist 2019-08-21 Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Seth Welborn Previous: The Rise of Unconventional Loans Next: Delinquencies Recover from Spike Share Save Related Articles Tagged with: Ask the Economist Subscribecenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 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. Servicers Navigate the Post-Pandemic World 2 days ago August 21, 2019 1,794 Views The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Ask the Economist: Millennial Demand and Affordability Issues Demand Propels Home Prices Upward 2 days agolast_img read more