DS News Webcast: Monday 4/13/2015

first_img Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago DS News Webcast: Monday 4/13/2015 Subscribe Home / Featured / DS News Webcast: Monday 4/13/2015 The Best Markets For Residential Property Investors 2 days ago  Print This Post Is Rise in Forbearance Volume Cause for Concern? 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save 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 agocenter_img Previous: Lawmakers Ask CFPB to Delay Enforcement of TILA-RESPA Next: Fed Accepting Statements of Interest for Community Advisory Council Membership 2015-04-13 Jordan Funderburk About Author: Jordan Funderburk The court battle between the Federal Housing Finance Agency and Nomura Holdings is nearing a climax after three weeks, as both sides have presented closing arguments. Nomura and the Royal Bank of Scotland, also a defendant in the case, are the first two financial institutions out of 18 sued by the FHFA in 2011 that failed to reach a settlement and took the case to trial. FHFA sued the 18 institutions to recoup U.S. taxpayer costs following the government’s $188 billion bailout of Fannie Mae and Freddie Mac in 2008, after which the government seized control of both Enterprises.In the closing arguments, Nomura’s lawyer said that the losses incurred by the FHFA were due to macroeconomic factors and not false or misleading statements by the banks, saying the FHFA used “voodoo science” to evaluate the securities. A lawyer representing the FHFA pointed to widespread misrepresentation of the quality of mortgage-backed securities on the part of banks leading up to the economic downturn and accused the banks of “deceit” and “colossal incompetence.”The U.S. Department of Treasury’s Director of Marketing and Outreach in the Homeownership Preservation Office, Carol Lambert, has announced that she will no longer work in that capacity effective Friday, April 10, and instead is moving to another position within Treasury. Lambert was instrumental in starting Treasury’s Making Home Affordable Program in 2009, which the government began in response to the devastating financial crisis of 2008 and to help families avoid foreclosure. She has continued to promote the program for the last six years, during which time MHA has helped more than one and a half million families. Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily April 13, 2015 617 Views in Featured, Media, Webcasts Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Credit Trends in Mortgage Insurance Drive Strong Q1 for Radian

first_img Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Congressman Responds to House Subcommittee Bill, Says GSE Funds Should Go To Reduce Deficit Next: Ocwen Reports Preliminary Net Income of $34 Million for Q1 The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Clayton Holdings Earnings Statements Profits Radian Subscribe 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 Related Articles The Best Markets For Residential Property Investors 2 days agocenter_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 Credit Trends in Mortgage Insurance Drive Strong Q1 for Radian Clayton Holdings Earnings Statements Profits Radian 2015-04-30 Brian Honea Share Save Philadelphia-based Radian reported $9.4 billion in new mortgage insurance written (NIW) and $172.1 billion in total primary mortgage insurance in force during Q1, according to the company’s First Quarter 2015 Financial Results released Thursday. Both figures represented year-over-year increases up from $6.8 billion and $162.4 billion, respectively.”We delivered strong results for Radian in the first quarter, driven primarily by outstanding credit trends in our mortgage insurance business,” Radian CEO S.A. Ibrahim said. “The last 12 months have been a turning point for Radian, as we’ve eliminated a significant portion of our legacy risk and therefore simplified our company with a focus on our core strengths. Today, we are better positioned to drive long-term value, both from our large and growing mortgage insurance portfolio and by broadening our future sources of revenue through our new mortgage and real estate services businesses.”Refinance activity spiked by 15 percentage points year-over-year in Q1, comprising 33 percent of NIW – compared to 18 percent for the same quarter in 2014 and 22 percent in Q4 2014.Radian took some important steps in growth and diversification strategy in the last year, namely the acquisition in June 2014 of Connecticut-based Clayton Holdings, a leading provider of loan due diligence, surveillance, REO management, and consulting services to the mortgage and real estate industries. Clayton’s operations comprise much of Radian’s Mortgage and Real Estate Services Segment. Subsequently, in March 2015, Clayton acquired Utah-based real estate brokerage firm Red Bell Real Estate and its sister company, Main Street Valuations, in order to expand its product offerings in the real estate market.Overall, Radian reported revenues of $290.7 million in Q1, which was a 13 percent increase from the same quarter a year ago ($258.2 million). The company’s net income, however, experienced a 37 percent drop year-over-year in Q1 from $146.0 million ($0.68 per diluted share) down to $91.7 million ($0.39 per diluted share). Radian’s book value per share jumped by 89 percent from $6.10 in Q1 2014 up to $11.53 in Q1 2015. The company’s figures for Q1 last year, which ended March 31, 2014, do not include the company’s acquisition of Clayton Holdings, which was finalized in June 2014.Radian’s total number of delinquent mortgage loans in its portfolio by 24 percent year-over-year in Q1 and by 11 percent from the fourth quarter of 2014. The primary mortgage insurance delinquency rate fell by 4.6 percent quarter-over-quarter and by 6.3 percent year-over-year in Q1, according to Radian’s announcement.Click here to see Radian’s full Q2 2015 results. Demand Propels Home Prices Upward 2 days ago  Print This Post April 30, 2015 1,185 Views Home / Daily Dose / Credit Trends in Mortgage Insurance Drive Strong Q1 for Radian Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily last_img read more

Freddie Mac Offering Four NPL Pools Totaling $624 Million in UPB

first_img About Author: Brian Honea July 8, 2015 999 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: GSEs Partner With Industry to Form Advisory Group For Common Securitization Platform Next: Agencies Publish Annual List of Nonmetropolitan Distressed and Underserved Areas Home / Daily Dose / Freddie Mac Offering Four NPL Pools Totaling $624 Million in UPB Demand Propels Home Prices Upward 2 days ago  Print This Post Share Save Deeply Delinquent Loans Extended Timeline Pool Offerings Freddie Mac Non-Performing Loans Standard Pool Offerings 2015-07-08 Brian Honea Demand Propels Home Prices Upward 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Freddie Mac Offering Four NPL Pools Totaling $624 Million in UPB Subscribe Sign up for DS News Daily center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Deeply Delinquent Loans Extended Timeline Pool Offerings Freddie Mac Non-Performing Loans Standard Pool Offerings The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News, Secondary Market 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 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Freddie Mac is offering $624.1 million worth of non-performing loans (NPLs) for sale in four pools in an auction of deeply delinquent loans from its mortgage investment portfolio, according to an announcement from the GSE on Wednesday.Three of the pools of loans are Standard Pool Offerings (SPOs), which total about $600.2 million. One of the pools is an Extended Timeline Pool Offering (EXPO) that includes NPLs 100 percent concentrated in Cook County, Illinois, and serviced by CitiMortgage Inc. The total in unpaid principal balance of the EXPO is $23.9 million.Potential bidders must be approved by Freddie Mac to access the secure data room that contains information on the NPLs and allows them to bid on the NPLs. Winning bidders and their servicers must meet the Federal Housing Finance Agency (FHFA)’s NPL sale guidelines announced on March 2, which include approval by and good standing with government housing agencies (Freddie Mac, Fannie Mae, Ginnie Mae, and the Federal Housing Administration); evaluating borrowers for eligibility in the government’s Home Affordable Modification Program (HAMP); and applying a “waterfall” of resolution tactics before resorting to foreclosure.FHFA, Freddie Mac’s conservator, stated in its 2014 Report to Congress released in June that “FHFA’s expectation is that the sale of seriously delinquent loans through non-performing loan sales will result in more favorable outcomes for borrowers, while also reducing losses to the Enterprises, and, therefore, to taxpayers.”Freddie Mac encourages all eligible bidders to bid, including private investors, minority- and women-owned businesses, non-profits, and neighborhood advocacy funds. The deadline for qualified bidders to submit bids for the SPOs is July 28, 2015, and the deadline for bidding on the EXPO is August 18, 2015. According to Freddie Mac, the winning bidder will be determined on the basis of economics, subject to meeting the GSE’s internal reserve levels.According to Freddie Mac, advisors for the transaction are Citigroup Global Markets, Credit Suisse Securities, and The Williams Capital Group, an MWOB.Freddie Mac completed its first auction of an EXPO in June when it sold 157 deeply delinquent loans for a total of $31 million in UPB. The winning bidder was Corona Asset Management XII. EXPOs differ from Freddie Mac’s SPOs in that the loans include smaller pool sizes and a longer marketing period. Freddie Mac is targeting smaller investors with its EXPO auctions, which are intended to give these investors extra time to secure funding to participate in the NPL sales.Freddie Mac’s last SPO NPL transaction took place in late May. That SPO NPL transaction was Freddie Mac’s third of 2015 and fourth overall since the first sale occurred in July 2014. The four NPL transactions have totaled approximately $2.17 billion in UPB. Related Articleslast_img read more

Homes are Shrinking Again

first_img Homes are Shrinking Again Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago New single family homes are starting have been shrinking, according to the National Association of Homebuilders (NAHB).According to Q1 2017 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was slightly lower at 2,389 square feet. Average (mean) square footage for new single-family homes declined to 2,628 square feet.According to the data, home sizes reached a plateau in 2015 and 2016 after experiencing a steady rise post-recession, but have started to drop off since. The current average home size is 2,624 square feet, 10 percent higher than the cycle low. The median size is 14 percent higher, at 2,402 square feet.NAHBThe post-recession increase in single-family home size is consistent with the historical pattern coming out of recessions. Typical new home size falls prior to and during a recession as home buyers tighten budgets, and then sizes rise as high-end homebuyers, who face fewer credit constraints, return to the housing market in relatively greater proportions.This pattern was exacerbated during the current business cycle due to market weakness among first-time homebuyers. But the recent declines in size indicate that this part of the cycle has ended and size will trend lower as builders add more entry-level homes into inventory.Meanwhile, while single-family is up post-recession, new multifamily apartment size is down compared to the pre-recession period. According to the NAHB, this is due to the weak for-sale multifamily market and strength for rental demand Share Save Home / Daily Dose / Homes are Shrinking Again  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Seth Welborn is a contributing writer for DS News. He is a Harding University graduate with a degree in English and a minor in writing, and has studied abroad in Athens, Greece. An East Texas native, he also works part-time as a photographer. The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily center_img Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago May 17, 2017 3,057 Views Buyers Home Size Homes 2017-05-17 Seth Welborn Tagged with: Buyers Home Size Homes in Daily Dose, Featured, Market Studies, News About Author: Seth Welborn The Best Markets For Residential Property Investors 2 days ago Previous: Examining Credit State By State Next: New York: A Property Tax Epicenter Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

Total Refinance Volume Fell According to Recent Report

first_img Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Headlines, News Total Refinance Volume Fell According to Recent Report Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily About Author: Brianna Gilpin Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Federal Housing Finance Agency refinancing 2017-06-15 Brianna Gilpin The Best Markets For Residential Property Investors 2 days ago Related Articles June 15, 2017 1,341 Views The Federal Housing and Finance Agency released their April 2017 Refinance Report Thursday showing falling total refinance volume as mortgage rates in March remained higher than the lows observed in 2016. Overall, mortgage rates decreased in April with the average 30-year fixed being 4.05 percent, down from 4.20 percent in March.HARP, which was established in 2009 to help those who couldn’t refinance due to decline in home value, was designed to give borrowers a chance to refinance by permitting the transfer of existing mortgage insurance to their newly refinanced loan, or allowing those without mortgage insurance on their previous loan to refinance without obtaining new coverage.HARP had 3,493 refinances in April—which brings the total refinances from the inception of the program to 3,464,589. This represented 3 percent of total refinance volume. 6 percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.According to FHFA, borrowers with loan-to-value ratios greater than 105 percent accounted for 19 percent of the volume of HARP loans year-to-date through April 2017. Twenty-five percent of HARP refinances for underwater borrowers year-to-date were for shorter term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages. Refinances through HARP represented 6 or more percent of total refinances in Nevada and Florida—double the 3 percent of total refinances nationwide over the same period.Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program, according to the FHFA. Ten states in the U.S. accounted for over 60 percent of the Nation’s HARP eligible loans with a refinance incentive as of December 31, 2016. These states include Florida, Illinois, Michigan, Ohio, Georgia, Puerto Rico, Pennsylvania, New Jersey, New York, and Alabama. The national total of HARP eligible loans with refinance incentive was 137,594. Tagged with: Federal Housing Finance Agency refinancingcenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Most Buyers Unfazed by Rate Hikes, Inventory Continues Dropping Next: Freddie Mac Slaps a Price Tag on STACR Deal The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Total Refinance Volume Fell According to Recent Report Data Provider Black Knight to Acquire Top of Mind 2 days ago Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Liens and Judgments Data: Not Gone for Good

first_img Previous: Fed Remains Stagnant Next: Ellie Mae Announces 2018 Conference, Hall of Fame, Innovation Awards September 20, 2017 2,381 Views About Author: Ken Viviano Tagged with: Credit Reports Data Provider Black Knight to Acquire Top of Mind 2 days ago Mortgage lenders rely on liens and judgments records to assess a borrower’s creditworthiness and capacity for repayment. For decades, they obtained this information in credit reports during the application process. But as of July 1 this year, the Nationwide Credit Reporting Agencies (NCRAs)— Equifax, Experian, and TransUnion—began removing a large segment of the data from their reporting due to unmet identity verification standards per the National Consumer Assistance Plan (NCAP).In an effort to reduce instances of records being matched to the wrong individuals, the NCAP states that public records used in credit reports must possess at least three of the following: name, address, Social Security number, or birthdate. According to a whitepaper titled “Linking Liens and Civil Judgments Data” by LexisNexis® Risk Solutions, “Approximately 50 percent of tax lien records and approximately 96 percent of civil judgment records do not contain a [Social Security number]” nor do they meet the minimum requirements. Therefore, the NCRAs will no longer provide the data.The resulting gap has many lenders worried that they will no longer have a complete picture of an applicant’s risk. Further, many secondary mortgage market investors including the government-sponsored enterprises (GSEs) have not changed their underwriting policies and still require all items be disclosed and resolved before closing.While the NCRAs will no longer provide a full report on liens and judgments, there are other opportunities in the lending lifecycle to obtain this information. However, the associated costs and risks will vary depending on when lenders choose to access the data.Title SearchLiens and judgments tied to the property in question will appear in a title search after underwriting. However, by this time, the loan has already been approved with a set closing date, making this a costly and high-risk option. If a record is found, underwriters must contact the borrower to resolve it and rework the loan. If the issue is more complicated, it can cause a closing delay, which creates a negative consumer experience and hurts a lender’s ability to retain business. Should the loan fall through, it would be a significant loss for the lender, having already invested around 45 days and, according to a report by the Mortgage Bankers Association (MBA), up to $7,209 in expenses.Soft Credit PullsAfter a loan has been approved, lenders may do a soft credit pull to see if there are any changes or cause for concern with the borrower, such as large purchases or late payments. These reports can include liens and judgments. But you can only do a soft pull during underwriting, pre-closing, and post-closing. Like the title search, this may be too late in the process to identify something without the risk of heavy costs and disrupting the path to closing.Liens and Judgments ReportsLiens and judgments reports are available for continued access to the data in credit reporting. These can be provided as a supplemental report, which will require additional steps and staff retraining, or as an integrated option that fits seamlessly into the lenders’ credit reporting solution, allowing them to maintain their existing credit review process. With the information available from the onset, lenders can proactively resolve any items before loan approval, thereby minimizing the risks in moving the borrower forward and ensuring a streamlined process. These reports do come with a minimal fee, but the benefits of having the information up front greatly outweigh the costs of an unexpected item appearing at the end of the process.These reports can overcome the matching challenges that led to the credit report content change by using data that is compliant with the Fair Credit Reporting Act (FCRA). FCRA-compliant data has met stringent accuracy guidelines to link public records to the correct consumer so it can be used in underwriting and credit decisions. Lenders can further corroborate the data through a verification service like DataVerify, which compares information on a borrower across multiple data sources to validate supplied data and alert to variances.While the removal of liens and judgments from credit reports has been a cause for concern, mortgage lenders can be assured that the data hasn’t disappeared. There are options available to access the records throughout the loan process. But it is up to each lender to determine how much risk they are willing to take and whether they will obtain the information up front during application or further into the loan process near closing. Credit Reports 2017-09-20 Ken Viviano The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe in Daily Dose, Featured, Foreclosure, Headlines, News, Technology  Print This Post Liens and Judgments Data: Not Gone for Good Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Liens and Judgments Data: Not Gone for Good Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agolast_img read more

Home Appreciation Remains Steady, But Vegas Lags Behind

first_img Previous: New Mortgage Solutions Venture Announced Next: IndiSoft Names Kenneth M. Goins, Jr. CFO  Print This Post Related Articles Tagged with: Black Knight Black Knight Data & Analytics Home Price Index Report Home Prices in Daily Dose, Featured, Headlines, Journal, Market Studies, News Home / Daily Dose / Home Appreciation Remains Steady, But Vegas Lags Behind About Author: David Wharton 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 Data Provider Black Knight to Acquire Top of Mind 2 days ago Black Knight Black Knight Data & Analytics Home Price Index Report Home Prices 2018-01-29 David Wharton Demand Propels Home Prices Upward 2 days ago Dover, Delaware, must have been doing something right in November 2017—it led the nation that month when it came to growth in home prices. With an estimated population of 37,786 according to 2016 Census numbers, the capital of The First State saw local home prices increase 2.11 percent month-over-month last November, well above the national average of 0.27 percent. It was also significantly higher than the metro with the next-highest month-over-month appreciation—San Jose, California, at 1.52 percent. On the other end of the spectrum, Canton, Ohio, saw the largest drop of any U.S. metro, falling 2.24 percent month over month.All of that is according to the latest Home Price Index Report, released today by the Data and Analytics division of Black Knight, Inc. The report spotlights the state of home prices as they were in November 2017, which continued a 67-month consecutive streak of annual home price appreciation. U.S. home prices gained 6.44 percent year-over-year, as of November. On a state level, New York was top of the heap for month-over-month gains, with home prices increasing 1.36 percent between October and November. November marked the fifth month in a row that New York led in state-level monthly appreciation.Las Vegas continued to see gains in home prices, but home prices there still sit well below their 2006 peak. As of November, Vegas has gained nearly 13 percent year-over year—up an astonishing 93 percent over its low point—but still lags 25 percent behind that 2006 high point.Of the nation’s 40 largest metros, 12 hit new highs:Boston, MA ($468,000)Charlotte, NC ($230,000)Dallas, TX ($264,000)Denver, CO ($396,000)Kansas City, MO ($198,000)Los Angeles, CA ($665,000)Nashville, TN ($269,000) New York, NY ($476,000)San Diego, CA ($586,000)San Francisco, CA ($861,000)San Jose, CA ($1,073,000)Seattle, WA ($476,000)It isn’t good news across the board, however. While 11 of the nation’s 20 largest states hit new peaks, home prices fell in six of them. Wisconsin saw the largest drop, decreasing 0.37 percent, followed by Ohio (-0.31 percent), North Dakota (-0.26 percent), and Connecticut (-0.22 percent).You can read the full Black Knight report by clicking here. Servicers Navigate the Post-Pandemic World 2 days ago Home Appreciation Remains Steady, But Vegas Lags Behind Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago January 29, 2018 1,331 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save Subscribelast_img read more

Appraisal Threshold for Residential Real Estate Loans Could Shift

first_img A regulatory threshold that’s been in place for nearly a quarter of a century could be shifting soon. The FDIC, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency are jointly issuing a notice of proposed rulemaking (NPR) and inviting public comment during a 60-day window after the notice is published in the Federal Register.The notice, entitled Real Estate Appraisals, proposes increasing the threshold for residential real estate transactions that require an appraisal from $250,000 to $400,000. This would be the first such alteration to that threshold since 1994. According to the joint joint statement released by the agencies, “Consistent with the requirement in the appraisal regulations for other transactions below their threshold exemptions, regulated institutions would be required to obtain an appropriate evaluation of the real property collateral that is consistent with safe and sound banking practices for transactions exempted as a result of the proposed threshold.”The NPR would also “add certain transactions secured by residential property in rural areas that have been exempted from the appraisal requirements pursuant to section 103 of the Economic Growth, Regulatory Relief and Consumer Protection Act to the list of exempt transactions in the appraisal regulations.” The proposed rule would require evaluations for this type of transaction.The proposed rule would also require regulated institutions to “subject appraisals for federally related transactions to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practice,” in keeping with changes instituted by the Dodd-Frank Wall Street Reform and Consumer Protection Act.You can read the full NPR by clicking here.Jeff Dickstein, Chief Compliance Officer for Pro Teck Valuation Services, explored some of the ways the Dodd-Frank Act has impacted the appraisal industry in his October DS News feature entitled “The Unforeseen Consequences of Dodd-Frank.”“While Dodd-Frank was passed in 2010, the collection of fees and the creation of the National AMC Registry didn’t go into effect until August 10, 2018. In those eight years, lawmakers at the state and federal levels haven’t been able to amend state laws to collect the fees, and the federal government hasn’t revisited what to do with the surplus,” Dickstein wrote. “As a result, 26 states have applied for and been granted a one-year extension to comply with the program.”You can read that full article online for free by clicking here, and check out all of DS News’ back issues online for free in our digital archive. David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] in Daily Dose, Featured, Government, Journal, News The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: David Wharton Appraisals Dodd-Frank Economic Growth Regulatory Relief and Consumer Protection Act FDIC Federal Reserve notice of proposed rulemaking OCC 2018-11-21 David Wharton Home / Daily Dose / Appraisal Threshold for Residential Real Estate Loans Could Shift Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: FHFA Amends Affordable Housing Regs Next: Is the American Middle-Class Hurting? Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Share Save Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Appraisals Dodd-Frank Economic Growth Regulatory Relief and Consumer Protection Act FDIC Federal Reserve notice of proposed rulemaking OCC Sign up for DS News Daily Appraisal Threshold for Residential Real Estate Loans Could Shift Demand Propels Home Prices Upward 2 days ago  Print This Post November 21, 2018 3,379 Views Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

After the Dust Settles

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: The Week Ahead: Eye on U.S. Mortgage Performance Trends Next: Innovative Solutions Demand Propels Home Prices Upward 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Share Save December 7, 2018 1,446 Views Home / Daily Dose / After the Dust Settles About Author: Radhika Ojha David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] in Daily Dose, Featured, News, Print Features Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily center_img Editor’s note: This feature originally appeared in the December issue of DS News, out now.The 2018 midterm elections were historic on numerous fronts, with the Democrats retaking the House of Representatives and Republicans padding their majority in the Senate. CBS News and other outlets reported that an estimated 113 million people participated in the elections, which marked the first time in history that a midterm saw more than 100 million votes. Moreover, estimates indicate that around 49 percent of eligible voters participated in the midterms. For perspective’s sake, only just over 36 percent participated in the 2014 midterms, generating one of the lowest voter turnouts in U.S. history.The elections also saw a number of “firsts” checked off the list. More than 100 women were elected to Congress, and the 2018 midterms also saw a 75 percent increase over 2012 in the number of women of color running for Congress. The tumultuous election night saw the youngest woman ever elected to Congress(Alexandria Ocasio-Cortez, D-New York, age 29), the election of the first two Native American congresswomen, the first two Muslim congresswomen, the first Korean-American congresswoman, and the first openly gay male governor (Jared Polis, D-Colorado).With a new status quo settling over Washington, D.C., and the rest of the country, DS News set out to examine the landscape as the dust is settling and determine how this election is most likely to impact housing and mortgage markets going forward.THE FATE OF THE GSES AND THE BCFPAfter a decade under the Federal Housing Finance Agency’s (FHFA) conservatorship, the Trump administration has indicated its intentions to work toward ending the conservatorship of the GSEs, Fannie Mae, and Freddie Mac.In a recent memo, Laura S. Wertheimer, Inspector General at the FHFA, identified four serious management and performance challenges that the agency faced in its role as a regulator and supervisor of the government-sponsored enterprises. They included: 1) the agency’s inability to improve oversight of both GSEs while strengthening internal review processes for nondelegated matters, 2) upgrading supervision of the GSEs and Federal Home Loan Banks, 3) oversight in cybersecurity, ensuring effective information security in order to protect the sensitive borrower data gathered by the GSEs, and 4) enhancing oversight over the GSEs’ relationship with counterparties and third parties.While it is possible the conservatorship will be unwound in the next few years, Democratic control of the House makes it likely they will look to build language into any such agreement that would provide funds for affordable housing and offer expanded credit provisions for underserved borrowers. The size and scope of the GSEs are also expected to change.The stewardship of the Bureau of Consumer Financial Protection (BCFP) is another area that is likely to be impacted by the election results. “Who replaces Director Mick Mulvaney—and whether that new director will continue to take the bureau in the same direction—will depend to a certain extent on which party controls the House and Senate. A more stridently conservative director, for example, is unlikely to be approved by a Democratic House,” Rick Sharga, EVP, Carrington Mortgage Holdings, recently told DS News.One likely source of friction will be Rep. Maxine Waters (D-California), a vocal critic of President Trump now expected to become the Head of the House Financial Services Committee, which oversees the United States banking system. Waters released a statement after the election indicating that she will make it a key priority to ensure “that [the BCFP] can be allowed to resume its essential role of protecting consumers from harmful practices without interference from the Trump administration.” This could put her on a course to butt heads with BCFP Acting Director Mick Mulvaney, or his appointed successor, Trump nominee Kathy Kraninger, assuming she is confirmed (which is likely with a Republican-controlled Senate).Waters also said that the House Financial Services Committee would work to protect consumers from fraud and predatory lending.Sharga said that while the BCFP has been working in tandem with the mortgage industry by soliciting input from practitioners and creating an environment where qualified borrowers got a better chance to secure a loan, “a return to more of an ‘enforcement’ mentality could cause the pendulum to swing back once again and make it more difficult for borrowers to achieve their dreams of homeownership.”LEGISLATION AT STAKEWith the Democrats in control of the House and Republicans maintaining a majority in the Senate, legislation will demand more partisan cooperation or run the risk of stalling. This new dynamic has the potential to impact numerous pieces of affordable housing legislation, including the Affordable Housing Credit Improvement Act, the New Markets Tax Credit Extension Act, and the Historic Tax Credit Enhancement Act.Furthermore, while Republican control of the Senate and the White House will make it challenging for Democrats to pass any new regulatory legislation, it will be equally difficult for any new deregulatory bills to make it past the House—a definite change from the landscape of the past two years.Tax cuts have long been a primary objective of the Republican Party, leading up to the successful passage of the Tax Cuts and Jobs Act in December 2017. However, even with Democrats in control of the House, the two parties might find common cause in further tax reform, and that would inevitably send further ripples through the housing market.Nine months in, the Tax Cuts and Jobs Act of 2017 appears to have had some impact on home-value growth. Some of the changes brought by the December 2017 act were a $10,000 cap on total state and local tax (SALT) deductions, a lower threshold for full mortgage interest deductions, and higher standard deductions for most filers. According to a report by Zillow, following the introduction of the act, home growth appears to have slowed, particularly in areas with homeowners that historically used the SALT deduction, compared to areas with a lower percentage of homeowners who use the SALT deduction.Speaking to Yahoo Finance, Robert Hockett, Edward Cornell Professor of Law at Cornell Law School, said, “The progressive wing of the [Democratic] party, which has all the momentum, is not as concerned about the deficits. They would look to keep the corporate tax cuts (instead of repealing them), but also add tax cuts for the middle class and those who need it the most.”CROSSING OVERIn addition to the larger housing-related issues at stake in the midterms, two particular races involved familiar faces from within the industry itself.In Oklahoma, Kevin Stitt, the founder of Gateway Mortgage, won the gubernatorial race against Democrat Drew Edmondson. While at Gateway, Stitt was a member of the National Mortgage Servicing Association (NMSA), a Five Star trade association representing 90 percent of the mortgage market.During the primaries, Stitt gained the support of Republican politicians such as Texas Senator Ted Cruz, who won re-election against Representative Beto O’Rourke (D-Texas).“I congratulate the voters of Oklahoma for electing Kevin as their next Governor,” said Ed Delgado, President and CEO of The Five Star Institute (DS News’ parent organization). “They have voted for someone whose strong business acumen helped propel a business he founded in 2000 into a nationwide mortgage company and will also help to strengthen Oklahoma’s economy.”Meanwhile, Richard Cordray, the former Director of the BCFP, lost out to Republican Mike DeWine in his bid for the governorship of Ohio. Cordray has a long history in Ohio. Before his stint as head of the BCFP, Cordray served as an Attorney General, Treasurer, and Solicitor General for the Buckeye State.Another development to keep an eye out for—former Housing and Urban Development (HUD) Secretary Julián Castro told Rolling Stone earlier this year that he would be making a decision after the midterm election as to whether he would launch a presidential bid for the 2020 election. While he didn’t outright confirm those plans, he did say it was “likely” and that he would “make a final decision after November.”While Secretary of HUD, Castro focused his efforts on stabilizing the post-Recession market; helping homeowners who lost their properties in Hurricane Sandy, floods, and other natural disasters; and giving public-housing residents access to high-speed internet through the ConnectHome program.During Castro’s tenure, HUD also worked with the Department of Justice and 49 state attorneys general to protect homeowners from mortgage fraud during the financial crisis. The result was a $25 billion agreement in 2012 with the country’s five largest lenders, providing relief to millions of homeowners across the country.THINK GLOBALLY, ACT LOCALLYVoters in key states cast their ballots on housing-related legislation that focused on everything from increasing home construction to introducing new rent regulations to protect tenants. While Georgia passed a ballot referendum to help nonprofits in the state provide housing for those living with mental illness, California voted on three separate affordable-housing ballot measures.Affordable housing has become a hot-button nationwide issue in 2018. According to the National Association of Home Builders/ Wells Fargo Housing Opportunity Index, only 56.4 percent of homes sold in Q3 2018 were affordable to families earning the U.S. median income of $71,900. That’s down from 57.1 percent in Q3 2018, and represented the lowest percentage since mid-2008. California has become a prime example of the affordability challenges in recent years, home to consistently unaffordable metros such as Los Angeles, San Jose, and San Diego.The Veterans and Affordable Housing Act will allow the state to sell $4 billion in general bonds to fund existing affordable-housing programs for low-income people, veterans, and farmworkers. Most of the funds will go toward existing affordable-housing programs while $1 billion will go toward veteran housing programs.Proposition 10—or the Local Rent Control Initiative Act—was one of the most hotly debated pieces of legislation in the Golden State, as well as one of the costliest legislation campaigns this election. According to a CNBC report, proponents of this legislation spent around $26.2 million on the campaign, while those opposed spent $76 million.At the heart of the battle over this proposition was a state law that restricts the scope of rent-control policies that cities and other local jurisdictions may impose on residential property. If the proposition had been enacted, that law would have been repealed, resulting in a potential net reduction in state and local revenues of tens of millions of dollars per year in the long term.According to the Official Voter Information Guide on California’s General Election, those supporting the proposition had said that enacting this legislation would restore authority to establish rent control in local communities while putting annual limits on the amount landlords can raise in terms of rent. Proponents argued that this would keep tenants in their homes rather than potentially pushing them into homelessness.Opponents of the initiative included real estate agents and residential real estate investors, among others, who argued that the legislation would only exacerbate California’s housing crisis. They reasoned that the initiative would have hurt both renters and homeowners as it allowed for the regulation of single-family homes and put “bureaucrats in charge of housing by letting them add fees on top of rent.”The voters of California sided with the opposition and voted no on this legislation. That means, for now, the 1995 state law remains in place.THE ROAD TO 2020While speculation abounds regarding what the next few years will look like, history suggests there will be more than a few surprises along the way, and the industry faces no shortage of challenges regardless of who controls which aspects of the federal government.Natural disasters are taking an increasing toll—according to the National Oceanic and Atmospheric Administration, there were 31 U.S. weather and climate disasters that caused losses exceeding $1 billion in 2016 and 2017 alone. Earlier this year, a report by the Union of Concerned Scientists estimated that as many as 311,000 coastal homes will be at risk of chronic flooding within the next 30 years. As of this writing, the National Flood Insurance Program is weeks away from expiring unless Congress votes to extend it once again.While 2018’s twin challenges of home affordability and insufficient housing inventory are beginning to see relief in some markets, many still speculate on when and how the next economic downturn will occur, and how it will impact the housing market when it does. According to a Bloomberg report, “two-thirds of business economists in the U.S. expect a recession to begin by the end of 2020.”Whatever the future holds, it will be imperative that the industry works diligently to adapt to and anticipate the challenges ahead, whether Washington, D.C., enters a new era of bipartisan cooperation or becomes immobilized—once again—in gridlock. After the Dust Settles Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Servicers Navigate the Post-Pandemic World 2 days ago About Author: David Wharton Tagged with: BCFP Bills Fannie Mae Federal Home Loan Banks FHFA Freddie Mac GSEs House HOUSING Legislation Regulation Senate BCFP Bills Fannie Mae Federal Home Loan Banks FHFA Freddie Mac GSEs House HOUSING Legislation Regulation Senate 2018-12-07 Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe  Print This Post The Best Markets For Residential Property Investors 2 days agolast_img read more

Five Minutes With: Talking Tech and Disaster Prep

first_imgSubscribe July 19, 2019 1,709 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Disaster Five Minutes With Technology 2019-07-19 Seth Welborn Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Five Minutes With: Talking Tech and Disaster Prep Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Seth Welborn 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. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Market Studies, News, Print Features, Technology Previous: The Week Ahead: Analyzing Vacancy Rates Next: Partnership to Continue Honoring Veterans Five Minutes With: Talking Tech and Disaster Prep Tagged with: Disaster Five Minutes With Technology Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Editor’s note: This feature originally appeared in the July issue of DS News, out now.Amy Neumann manages all aspects of Flagstar’s Foreclosure Operations and Oversight, including Flagstar’s Default Attorney Network. She oversees the foreclosure functions performed by multiple servicing vendors and attorneys, as well as the in-house foreclosure operations at Flagstar. She joined Flagstar in September 2015 from Trott & Trott, P.C., where she was a Senior Managing Litigation Attorney. Neumann has over 10 years’ litigation experience, specializing in mortgage banking, default servicing, and defense of regulatory compliance claims on behalf of financial institutions. She graduated with a BA from Oakland University and received her JD from Wayne State University School of Law.Neumann recently spoke to DS News about how technology is changing the industry, the importance of disaster preparedness, and what trends to look out for in the months ahead.What are the biggest challenges currently faced by servicers operating in the default space? For the law firms that assist them?State compliance is getting more and more complicated and expensive. I appreciate our law firm partners more than ever as they assist us in navigating the ongoing state law changes—not only from a pure legislative aspect but especially when it comes to developing law as interpreted by state courts.Low volumes combined with increased risk and compliance expenditures have been an ongoing issue. There is a real concern that even a modest increase in volume may be problematic across the board, as default firms have been operating within a period of austerity that has been necessary for survival. Having a plan to identify impacted loans, reaching out to customers where traditional methods may fail, providing customers with accessible (online) information related to the disaster and relief available, ensuring that customer-facing representatives are trained and kept current on disaster events—all of these objectives will provide better service to impacted customers. Time is of the essence in these situations, so appropriate measures should be in place and ready to deploy where and when needed.How can servicers work to support borrowers through future natural disasters such as storms and wildfires?As with any good business, being prepared and having a plan so that when disasters occur—an unavoidable inevitability—is critical. Servicers should ensure that there is a plan in place so that the only chaos they face is external, stemming from the disaster itself.How is technology changing the industry?Tech provides a significant lift to the overall process, ultimately resulting in the ability to build better reporting. Effective reporting produces better metrics. The data that tech yields can result in significant operational gains through strengthened transparency and controls. However, there is a cost—taking advantage of technology requires resources and investment. Balancing the cost of these benefits against competing priorities is a constant challenge.What are the most challenging aspects of managing the interactions between servicers and their various partners?It is so important to actively manage the communications between firms and servicers. Ongoing training and use of internal escalation protocols are imperative for meeting client expectations. Any time staff indicates that communication with a client is futile, that is a red flag that something has broken and must be addressed. In my experience, a passive management of this area leads to costly issues for both servicers and firms alike.What are some of the most significant challenges facing the industry heading into 2020? How can servicers work together to solve them?Cybersecurity remains a critical challenge. Technology has advanced the industry considerably, but at a great expense caused by the expense of maintaining security protocols.Why are events such as the Legal League Summits important?The importance of meeting the people that you rely on everyday to keep your business moving forward can’t be overstated. Discussing topics of mutual interest can garner insights and novel solutions to the latest challenges facing the industry. Related Articleslast_img read more