Economist Predicts Millennials Will Greatly Increase Presence in Home Market in 2015

first_img About Author: Tory Barringer The Best Markets For Residential Property Investors 2 days ago 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. December 2, 2014 1,102 Views The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Sign up for DS News Daily Tagged with: First-Time Homebuyers Forecast Home Values Housing Affordability Millennials Zillow Home / Daily Dose / Economist Predicts Millennials Will Greatly Increase Presence in Home Market in 2015 Subscribe Related Articles  Print This Postcenter_img Previous: Consumer Sentiment Rises for Fourth Straight Month Next: October Sales, Prices for Existing Homes Top 10-Year Average Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago First-Time Homebuyers Forecast Home Values Housing Affordability Millennials Zillow 2014-12-02 Tory Barringer Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, News While millennials so far have yet to find their place in the housing market, the stage is set for younger Americans to become the driving force in the residential sector in 2015, according to a forecast from Zillow.In his 2015 outlook, Zillow’s chief economist, Dr. Stan Humphries, predicts millennials will take on a much greater presence in the housing market, overtaking generation X as the largest group of homebuyers.”Roughly 42 percent of millennials say they want to buy a home in the next one to five years, compared to just 31 percent of generation X,” Humphries said. “The lack of home-buying activity from millennials thus far is decidedly not because this generation isn’t interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with.”Analyzing current and expected trends, Humphries says a growing number of generation Y renters will be motivated to make their first purchase as rental costs rise an average 3.5 percent annually and home value growth slows to a yearly rate of 2.5 percent.”As renters’ costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market,” he said.At the same time, he expects homebuilders will take a cue from this year’s underwhelming new home sales figures and make a switch to build cheaper homes to narrow the price gap and make their stock more attractive.”In recent years, home builders seem to have made a conscious decision to sell fewer, more expensive homes instead of more, cheaper homes,” he said. “In 2015, that will change, especially as demand moves toward the lower end of the market as millennials begin buying en masse.”While those factors will work in the favor of first-time homebuyers, Zillow also expects the housing market as a whole will shift more to the advantage of buyers, who have struggled throughout the recovery in what has largely been a seller’s market: low inventory, tight credit, and intense competition from investors and all-cash buyers.Humphries says the tables will turn in 2015 as more inventory comes to the market, giving buyers more negotiating power and putting pressure on sellers to compromise.”This more balanced market will be smoother sailing for everyone, both for buyers in search of a competitive advantage, and for sellers who turn around and become buyers themselves,” he said.Based on local income patterns, home prices, and affordable housing stock, Zillow predicts 2015’s best markets for first-time buyers—especially those in the millennial age range—will be Pittsburgh; Las Vegas; Chicago; Atlanta; and Hartford, Connecticut. Servicers Navigate the Post-Pandemic World 2 days ago Economist Predicts Millennials Will Greatly Increase Presence in Home Market in 2015 Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

New York-Based Lender Settles with U.S. for $36 Million Over Mortgage Fraud Claims

first_img Related Articles 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. About Author: Brian Honea Demand Propels Home Prices Upward 2 days ago Direct Endorsement Lender Program FHA Fraud Golden First HUD Settlements 2015-01-02 Brian Honea Sign up for DS News Daily The Best Markets For Residential Property Investors 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 Home / Daily Dose / New York-Based Lender Settles with U.S. for $36 Million Over Mortgage Fraud Claims The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img January 2, 2015 1,130 Views The U.S. has settled a civil mortgage lawsuit against Golden First Mortgage Corp. that accused the mortgage company and its owner, David Movtady, of defrauding a government mortgage program, according to an announcement from U.S. Attorney for the Southern District of New York Preet Bharara.The Great Neck, New York-based Golden First agreed to pay $36 million to settle a complaint originally filed by the U.S. in April 2013 and amended in August 2013. In the complaint, the U.S. accuses Golden First of violating the False Claims Act through years of misconduct relating to the mortgage company’s participation in the Federal Housing Administration (FHA)’s Direct Endorsement Lender Program.The settlement, approved by U.S. District Judge Jesse Furman, also requires Movtady to pay a $300,000 penalty. As part of the settlement, Golden First and Movtady accepted responsibility for the alleged misconduct in the complaint. The complaint alleges that Golden First did not conform to the all FHA and HUD regulations related to the Direct Endorsement Lender Program by failing to maintain a quality control program, despite a certification signed by Movtady in September 2008 that the company was in compliance with all of the FHA/HUD regulations to maintain FHA/HUD approval. Movtady is permanently barred from doing any business with the federal government as part of the settlement.”This settlement holds Golden First and its owner, David Movtady, accountable for lying to the government about compliance with HUD requirements and approving bad loans,” Bharara said. “This type of conduct costs the United States millions of dollars when the loans inevitably default, and this Office is committed to snuffing it out.”Golden First was a participant in the Direct Endorsement Lender Program from 1989 to 2010, and Movtady served as the owner, operator, and president of Golden First from 1979 to 2010, according to the complaint. Being a Direct Endorsement Lender gave Golden First the authority to originate, underwrite, and certify mortgages for FHA insurance. HUD relies on lenders to properly review, certify, and underwrite loans before they are approved for FHA insurance, since HUD is on the hook for the cost if the loan later defaults.According to the complaint, Golden First certified that more than 1,000 mortgage loans met HUD’s requirements for FHA insurance when in fact they did not. The complaint alleges that Golden First was in violation of three basic requirements of HUD’s quality control program: first, maintaining a program independent of the lender’s business units; second, disclosing loans with evidence of fraud or serious underwriting problems to HUD within 60 days of initial discovery; and third, the requirement to conduct a full review of a loan that defaults within the first six payments. New York-Based Lender Settles with U.S. for $36 Million Over Mortgage Fraud Claims in Daily Dose, Featured, Government, News Share Save Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Direct Endorsement Lender Program FHA Fraud Golden First HUD Settlements Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: Fannie Mae’s Mortgage Portfolio Plummets; Book of Business Ticks Upward Next: U.K. Lender May Have To Pay More Than Expected to Settle FHFA Suit  Print This Post Subscribelast_img read more

The Path to Monetary Policy Normalization

first_img Demand Propels Home Prices Upward 2 days ago The Path to Monetary Policy Normalization Sign up for DS News Daily Home / Featured / The Path to Monetary Policy Normalization in Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Federal Funds Target Rate Federal Reserve Monetary Policy Nomalization St. Louis Fed  Print This Post About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Is Rise in Forbearance Volume Cause for Concern? 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Watchdog Joins Calls for More Oversight of Non-Bank Servicers Next: The Week Ahead: Looking to UK for Affordable Housing Model Share Save 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. When it comes to the normalization of monetary policy on the part of the Federal Reserve, it comes down to two possibilities: either slow normalization or no normalization, according to St. Louis Fed President James Bullard in Santa Barbara, California, this week.While speculation persists about another rate hike by the Fed in June, which would be the first time the Fed has raised the federal funds target rate since the historic liftoff in June, Bullard discussed two possibilities for monetary policy normalization: the Federal Open Market Committee (FOMC)’s scenario (slow normalization) and the market-based scenario (little or no normalization).“The FOMC has laid out, via the Summary of Economic Projections, a data-dependent ‘slow normalization,’ whereby the nominal policy rate would gradually rise over the next several years provided the economy evolves as expected,” he said. “Market-based forecasts of FOMC policy, in contrast, envision ‘almost no normalization,’ whereby the policy rate would be changed only a few times in the next several years.”James Bullard, St. Louis Fed PresidentBullard said the three factors that favor the FOMC’s scenario are relatively strong labor markets in the U.S., an inflation rate that is closer to the FOMC’s target of 2 percent, and waning headwinds in global economic markets. According to Bullard, U.S. labor markets are “relatively tight,” although job gains for April, announced the day after Bullard spoke in Santa Barbara, were somewhat disappointing (160,000) compared with February and March. Bullard pointed out that the Fed’s labor market conditions index is well above historical averages. With the inflation factor, Bullard said that large movements in oil prices have had a substantial impact on headline inflation, and these measures have been trending higher as of late. On the waning global economic headwinds, Bullard said international influences on the U.S. economy appear to be waning in the first half of 2016 and that recent readings indicate a decline in financial stress; also, the effects of a stronger U.S. dollar appear to be waning.For the market-based scenario, Bullard pointed out two factors: slow GDP growth and low inflation expectations. GDP grew at an annual rate of just 0.5 percent in the Bureau of Economic Analysis (BEA)’s first Q1 estimate, which may be partially attributable to seasonality. Bullard said that market-based measures of inflation expectation began a downward trend late in 2015 after enjoying a relatively satisfactory summer in 2014.Which scenario is closer to being correct? Is it the FOMC’s projection of a gradual pace of rate increases over the next several years, or the market-based scenario that expects to see only a few increases in the federal funds target rate over that period?“Evidence from labor markets, inflation readings and global influences suggests the FOMC median projection may be more nearly correct,” he said. “Evidence from readings on GDP growth and market-based inflation expectations suggests the market view of the path of the policy rate may be more nearly correct.” Demand Propels Home Prices Upward 2 days ago Federal Funds Target Rate Federal Reserve Monetary Policy Nomalization St. Louis Fed 2016-05-06 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago May 6, 2016 1,239 Views last_img read more

The Week Ahead: Wells Fargo, One Year Later

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Share Save Tagged with: Senate Committee on Banking Housing and Urban Affairs Wells Fargo About Author: Joey Pizzolato On Tuesday, Wells Fargo President and CEO Tim Sloan will meet with the U.S. Senate Committee on Banking, Housing, and Urban Affairs to discuss the past, present, and future of the company.Wells Fargo has been in the spotlight for questionable lending practices before and during the housing crisis, which resulted in the stepping down of the bank’s former CEO as well as numerous board members. The company has recently revealed that another 1.4 million unauthorized accounts were uncovered in an internal investigation.Senator Elizabeth Warren (D-Massachusetts) has been an outspoken critic of Wells Fargo, and it is widely expected that she will continue to remain critical of the bank’s practices.The full committee hearing will take place at 10 a.m. EDT in room 538 of the Dirksen Senate Office Building.Other Events in the Week Ahead: Construction Spending, Monday, 10 a.m. EDTU.S. Senate Committee on Banking, Housing, and Urban Affairs hearing on Equifax Data Breach, Wednesday, 10 a.m. EDT.Freddie Mac Weekly Mortgage Survey, Thursday, 10 a.m. EDTUnemployment Rate, Friday, 8:30 a.m. EDT in Daily Dose, Featured, Government, Headlines, News Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / The Week Ahead: Wells Fargo, One Year Later Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected] Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Could There Be Racial Disparities in Bankruptcy? Next: Freddie Mac Announces Additional Hurricane Help Senate Committee on Banking Housing and Urban Affairs Wells Fargo 2017-10-01 Joey Pizzolato The Week Ahead: Wells Fargo, One Year Later  Print This Post Demand Propels Home Prices Upward 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago October 1, 2017 1,442 Views Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

Market Update: Existing Home Sales

first_img The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles October 21, 2017 1,511 Views About Author: Nicole Casperson Tagged with: Existing Home Sales HOUSING mortgage Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Market Update: Existing Home Sales The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Lehman Brothers Holdings Face Trustees Claims Next: CFPB Outlines Protecting Consumer-shared Data Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days agocenter_img Share Save Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected] Existing Home Sales HOUSING mortgage 2017-10-21 Nicole Casperson  Print This Post Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The National Association of Realtors (NAR) recently released its Existing Home Sales report—discovering that despite three straight months of home sales declining, September sales showed a small incline.Amidst the ongoing narrative of supply shortages, the report found that total existing-home sales increased by 0.7 percent to a seasonally adjusted annual rate of 5.39 million in September from 5.35 million in August.However, despite this slight increase, “home sales in recent months remain at their lowest level of the year and are unable to break through, despite considerable buyer interest in most parts of the country,” said NAR’s Chief Economist Lawrence Yun.According to Yun, closings faced an insufficient gain in September possibly due to the recent hurricanes. Adding that, “sales activity likely would have been somewhat stronger if not for the fact that parts of Texas and South Florida – hit by Hurricanes Harvey and Irma – saw temporary, but notable declines.”The report notes that the median existing-home price for all housing types in September was $245,100—representing a 4.2 percent increase from last year at $235,200. In addition, this price increase for September marks the 67th straight month of year-over-year gains, according to NAR.At the end of September, totally housing inventory increased 1.6 percent to 1.90 million existing homes available for sale, “but still remains 6.4 percent lower than a year ago at 2.03 million, and has fallen year-over-year for 28 consecutive months.”Meanwhile, the report notes that sold inventory is at a 4.2-month supply at the current sales pace—a decline from 4.5 months a year ago.“A continuation of last month’s alleviating price growth, which was the slowest since last December, 4.5 percent, would improve affordability conditions and be good news for the would-be buyers who have been held back by higher prices this year,” said Yun.To view the full report, click here. Home / Daily Dose / Market Update: Existing Home Sales in Daily Dose, Featured, Headlines Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

Silver Lining to Rising Home Prices . . .

first_img Previous: Quicken Calls Lawsuit ‘Meritless and Frivolous’ Next: Battling Zombie Homes . . . and Plywood Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago December 5, 2017 1,482 Views CoreLogic Frank Martell Frank Nothaft Home Price HOUSING mortgage 2017-12-05 Nicole Casperson Silver Lining to Rising Home Prices . . . Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Journal, Market Studies, News Home prices continue to climb both year-over-year and month-over-month, according to the October 2017 Home Price Index (HPI) released by CoreLogic Tuesday Morning.Nationally, prices increased by 7 percent from October 2016 to October 2017—representing the second consecutive month of 7 percent year-over-year increases. Meanwhile, month-over-month home prices increased by 0.9 percent in October 2017 compared with September 2017.Highlighting metro markets—specifically, if average housing stocks are overvalued, undervalued, or at value—the data found that 37 percent of the top 100 metropolitan areas were overvalued, with 26 percent undervalued, and 37 percent at value.When looking at the top 50 markets based on housing stock, 50 percent were overvalued, 14 percent were undervalued, and 36 percent were at value.“The acceleration in home prices is good news for both homeowners and the economy because it leads to higher home equity balances that support consumer spending and is a cushion against mortgage risk,” said President and CEO of CoreLogic Frank Martell.Martell explained that for entry-level renters and first-time homebuyers, however, it leads to tougher affordability challenges. In fact, according to the CoreLogic’s Single-Family Rent Index, rents paid by entry-level renters for single-family homes experienced an increase of 4.2 percent from October 2016 to October 2017, compared with overall single-family rent growth of 2.7 percent over the same time.“Single-family residential sales and prices continued to heat up in October,” said Dr. Frank Nothaft, Chief Economist for CoreLogic. “On a year-over-year basis, home prices grew in excess of 6 percent for four consecutive months ending in October, the longest such streak since June 2014. This escalation in home prices reflects both the acute lack of supply and the strengthening economy.”Look ahead by utilizing values derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state—CoreLogic projects prices to increase year-over-year by 4.2 percent by October 2018.To view the full report, click here. The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Silver Lining to Rising Home Prices . . .  Print This Postcenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Subscribe About Author: Nicole Casperson Tagged with: CoreLogic Frank Martell Frank Nothaft Home Price HOUSING mortgage Demand Propels Home Prices Upward 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected] Share Savelast_img read more

The Three Big Mortgage Trends of 2018

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago December 13, 2017 3,028 Views Home / Daily Dose / The Three Big Mortgage Trends of 2018 Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe in Daily Dose, Featured, Journal, News mortgage trends TransUnion 2017-12-13 Staff Writer Previous: FHLBank of San Francisco Welcomes New Board Member Next: Yellen: Tax Reform Will Likely Provide ‘Some Lift’ to Economy Demand Propels Home Prices Upward 2 days ago Tagged with: mortgage trends TransUnion The lowest mortgage loan delinquency rates since 2005, a reduction in the share of refinanced mortgages, and the return of home equity line of credit (HELOCs) are trends to look for in the mortgage industry in the next year according to TransUnion’s 2018 consumer credit forecast released on Wednesday.Trend 1: Serious mortgage delinquency rates to fallAccording to the forecast, the mortgage delinquency rate is expected to drop to 1.65 percent by the end of 2018, the lowest observed since 2005, down from a rate of 1.91 percent for Q3 2017.“From a credit performance standpoint, mortgage loan delinquency rates are the biggest story and are expected to decline next year driven primarily by strong employment and rising home prices,” Matt Komos, VP of Research and Consulting at TransUnion said.The forecast states that increases to the labor participation rate, median household income, and home equity levels are additional factors impacting lower mortgage delinquency rates.Trend 2: Rising rates and refinancingWith interest rate increases expected in 2018, the forecast has projected continued reduction in the share of refinanced mortgages as a percentage of all mortgages. Industry forecasts have refinancing share dropping from 35 percent in 2017 to 28 percent in 2018.“Many existing homeowners already having refinanced into a low-interest rate mortgage may be unwilling or unable to move up due to how expensive housing has become. That lack of mobility can put pressure on the supply of entry-level housing,” Joe Mellman, SVP and TransUnion’s mortgage line of business leader said.Trend 3: Return of HELOCsHome equity line of credit is set to make a comeback in 2018 with TransUnion forecasting approximately 1.6 million HELOC originations in 2018. That stands in stark contrast to the previous five-year period when less than half that number were originated. According to the forecast, as rising home prices see many more homeowners tapping into their home equity, the three largest uses for HELOCs will be:Debt consolidation to a lower interest rateFinancing a large expense such as home improvementRefinancing an existing HELOC or Home Equity LoanFor more about the 2018 TransUnion Forecast, click here.center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Three Big Mortgage Trends of 2018 Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily  Print This Postlast_img read more

Spend the Money, Fix the Roads, Woo the Homebuyers

first_imgHome / Daily Dose / Spend the Money, Fix the Roads, Woo the Homebuyers  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Journal, Market Studies, News Sign up for DS News Daily Spend the Money, Fix the Roads, Woo the Homebuyers Demand Propels Home Prices Upward 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 Rebuilding the national infrastructure was one of the major talking points for candidates on the Presidential campaign trail. That priority fell out of focus in 2017 as Congress put their energy toward first health care reform and then tax reform, with varying degrees of success. Infrastructure investment is a subject likely to factor in for potential homeowners considering moving and finding a home in a new city, and a new article by Next City highlights some of the American cities that put their money where their mouth is when it came to infrastructure funding in 2017.Next City profiled five American cities that “went big” on infrastructure investments last year. Topping the list is Dallas, Texas, which approved a massive $1.05 billion in infrastructure investments during a bond vote in October 2017. Over half of that total will go toward improvements in city streets and bridges, as well as bike lanes and trails. The package also dedicates $20 million toward “transitional and permanent supportive housing to target chronic homelessness, rapid rehousing for the elderly, disabled and families with children and day centers for seamless wrap-around services.”Other cities profiled for investing heavily in infrastructure last year include Oklahoma City, Oklahoma ($967 million); Denver, Colorado ($937 million); San Antonio, Texas ($850 million); and Raleigh, North Carolina ($200 million).With most of those cities located in the South and Mountain West, they are prime targets for homebuyer migration. According to the United Van Lines 41st Annual National Movers Study, both regions saw high inbound migration in 2017. North Carolina and Colorado ranked eighth and ninth in terms of inbound moves for the year, respectively. Neither Texas nor Oklahoma cracked the top 10 inbound states per the study, but that level of infrastructure investment might just make them contenders in 2018.Dallas did rank on Redfin’s recent list of the Top 10 Migration Destinations released in late 2017, coming in at seventh on their list of top 10 cities by net inflow. Dallas also has abundant residential construction, and Redfin found a correlation between that and net inflow of homebuyers.With both housing demand and home prices expected to continue rising in 2018, there’s no doubt that prospective buyers looking to find a new city are going to consider a variety of factors before committing. A billion-dollar infrastructure commitment is bound to stand out during that kind of evaluation. You can read more of Next City’s breakdown by clicking here. About Author: David Wharton The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Homebuyers infrastructure infrastructure spending migration next city 2018-01-03 David Wharton January 3, 2018 1,231 Views Previous: Americans Migrated West and South in 2017 Next: Fed Anticipates Economic Boosts from Tax Bill Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Tagged with: Homebuyers infrastructure infrastructure spending migration next city Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articleslast_img read more

Debt Practices and the Downward Poverty Spiral

first_img About Author: David Wharton  Print This Post in Daily Dose, Featured, Journal, Market Studies, News The Best Markets For Residential Property Investors 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: debt Debt Collection Racial Discrimination Racial Disparities Wealth Inequality Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Debt Practices and the Downward Poverty Spiral Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Home / Daily Dose / Debt Practices and the Downward Poverty Spiral Do debt practices unfairly impact low-income communities? A new report from a four-state collaborative of nonprofits argues that the answer to that question is “yes.”The new report is entitled “Enforcing Inequality: Balancing Budgets on the Backs of the Poor,” and was compiled in partnership by the California Reinvestment Coalition, the Maryland Consumer Rights Coalition, North Carolina-based Reinvestment Partners, and the Illinois-based Woodstock Institute. According to the report, “problematic policies around both consumer debt assignment and debt collection target low-income communities, as well as communities of color.”The collective of nonprofits reports that “Americans owe more than 26 percent of their annual income to consumer debt, which includes non-mortgage related debt such as credit cards, auto loans, and student loans.” Moreover, the report states that racial wealth gaps lead to non-white borrowers having “more consumer debts in collection, a higher debt load, and more student debt than white borrowers.” Some of the examined states also showed more debt collection actions happening in areas with large minority populations, as compared to areas with more white residents.“The fact that county and state governments frequently use contracted third-party private debt collectors is especially troubling because private debt collectors are not subject to the same consumer protection laws as public debt collectors,” states the accompanying media statement. “Accumulated debt can spiral out of control for consumers who are unable to pay.””The collection of civil and court fines and fees debt can perpetuate a debt trap and a cycle of poverty for communities already disproportionately impacted by our criminal justice system,” said Paulina Gonzalez, Executive Director of the California Reinvestment Coalition. “California and other states should immediately cease the use of private debt collection agencies to collect on this debt, especially since the revenue gained by this practice is minuscule, and these agencies are largely unregulated, leaving people with few, if any, protections from abuse, further impacting poor people and people of color.”Some of the report’s key findings include:Racial demographics are a better predictor than income on where Maryland’s Central Collection Unit filed civic debt collection cases.Vehicle tickets were 40 percent more likely to be issued to drivers from minority and low- and moderate-income zip codes than drivers from non-minority and higher-income zip codes in Chicago, Illinois.In the city of Durham, North Carolina, one in five residents has a suspended driver license and over 2,000 have had their license revoked or suspended for failure to pay or comply with court costs.The imposition of criminal, municipal, and civil fines and fees disproportionately impact communities of color due to systemic race and criminal justice issues that hurt communities of color, such as higher rates of economic instability, the over-policing of neighborhoods, and higher traffic stop rates. For example, 67.9 percent of the probation caseload, and the relevant fines and fees, in the California Probation System consists of people of color, overrepresented by African Americans.You can read the full report by clicking here.The unbalanced effects of debt collection practices against minority and low-income communities can simply add to the systemic challenges they already face in many cases. An April Zillow report found inequities among homebuying power across ethnic groups. Asian buyers fared best, able to afford 85.2 percent of homes without spending more than 30 percent of their income on housing. White buyers had the second-greatest buying power, able to afford 77.6 percent of homes for sale. Hispanic homebuyers could afford 64.9 percent of homes available. Black homebuyers, however, had the fewest options, able to afford just 55.3 percent of the homes available for purchase.Another Zillow report from the same month found lingering effects from the decades-past practice of “redlining” certain neighborhoods as “hazardous” for mortgage lenders. Unsurprisingly, neighborhoods classified as “hazardous” very often tended to be those occupied primarily by racial or ethnic minorities, and by the poor.During the intervening two decades, the median home value in those “best”-rated neighborhoods has risen 230.8 percent to $640,238. For the redlined neighborhoods? The same amount of time has witnessed an increase of only 203.1 percent, with median home values in those areas hitting $276,199. July 3, 2018 1,615 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save debt Debt Collection Racial Discrimination Racial Disparities Wealth Inequality 2018-07-03 David Wharton Demand Propels Home Prices Upward 2 days ago Previous: Wells Fargo Gives Boston Homeowners a LIFT Next: Legal League 100 Fall Summit—Sneak Preview Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribelast_img read more

Slashing Through the Servicing Jungle

first_imgHome / Daily Dose / Slashing Through the Servicing Jungle Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Tagged with: Borrowers Investors Lenders loans mortgage mortgage servicing Outsourcing Servicing Vendors Slashing Through the Servicing Jungle Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sean Ryan is CEO of Aspen Grove Solutions, a provider of property-servicing technology solutions. Aspen delivers solutions that reduce costs and manage risks for Asset owners and Servicers, particularly in the area of default asset management. Aspen’s Property Servicing Platform sits alongside and complements loan servicing. It focuses on managing the asset and timelines across all internal teams and the supply chain that delivers services on the asset from preforeclosure through to resolution. Data Provider Black Knight to Acquire Top of Mind 2 days ago Editor’s Note: This feature appeared in the November issue of DS News.According to the Mortgage Bankers Association’s 2017 Servicing Operations Study, servicing costs for nonperforming loans (NPLs) rose from $482 to $2,113 during the last decade. A February 2018 Urban Institute report entitled “Reforming the FHA’s Foreclosure and Conveyance Process” found that a single defaulted loan can suck the profits from 12 performing loans. This is a fundamental problem facing the industry. Compliance overhead, complicated investor rules, and unfair penalties for missed dates are often blamed for these cost increases. Such factors certainly don’t help, but they are only half the story. Fundamentally, most servicing platforms do not have the experience, the know-how, or the technology to deal with defaulted properties.Managing a defaulted loan is like battling through the jungle without a map. Danger lurks in the undergrowth, but most of the survival tools have been outsourced to specialty shops or vendors. Those ultimately responsible for managing the asset often live in hope that the third parties to whom they have ceded control and management will rescue them. Asset owners are frustrated by their servicers. Servicers are frustrated by their vendors, and the troops in the field are often not paid enough to do quality work. Problems persist throughout the supply chain, and many servicers are struggling to manage it all. Consequently, default servicing leaks money across the entire process. But there is a smarter way forward.WHY IS DEFAULT SERVICING UPSIDE DOWN?Fundamentally, investors/asset owners and their servicers have ceded control over the asset to their service providers, whether it is full outsourcing to specialty shops—which adds another layer in the supply chain—or outsourcing of the inspection and preservation elements of the default process. As a result, asset owners and their servicers lack control or visibility of the rules, money, data, management, or compliance across the supply chain. This adds unnecessary overhead, removes accountability when key dates are missed, exacerbates stress, and leaves everyone wondering why servicing is struggling to make profits. Ultimately, it creates suboptimal outcomes for all stakeholders, including the borrower.Vendors retain asset owner and servicer data—the tools a servicer needs to survive the jungle. Vendors decide when to carry out work. Vendors apply the investor rules. Any oversight and sign-off processes that do exist are fundamentally inefficient and deficient in oversight and control. As the industry continues to consolidate, it may prove very difficult to retrieve the data from vendors that leave the industry. Servicers often are required to train their own internal staff to work on multiple vendor systems, which are difficult to mine for data when claims are made and can trigger antagonistic encounters with vendors over timing, money, services, and other issues. Key dates can be missed. A property can come current in the servicing system, but costs are incurred because work orders are canceled too late. FHA conveyance rules and timelines exacerbate this problem because missing a key date simply drives costs up and makes it difficult or impossible to claim all allowable expenses.National inspection and preservation providers are expected to recruit and manage vendor networks. They are expected to manage properties aligned to the many different investor rules and guidelines. They are expected to perform QC work to a high standard and shoulder the burden of billbacks, upfront payments, canceled work orders, and much more. Furthermore, many of them invest millions of dollars in technology—a cost that must be borne from fees earned. They compete in a shrinking space and attempt to differentiate on technology or specialized forms, methods, or other secret sauces. In an ideal world, they would concentrate on core services that add value such as vendor management and recruitment, performance management, compliance, and QC.Apart from a lack of control and data and a surfeit of responsibilities, mortgage servicers face one overriding barrier to the efficient management of defaulted assets: the inadequacy of loan-servicing platforms for managing the asset itself. Consequently, Excel spreadsheets, access databases, a myriad of integrations, work-allocation systems, and other motley solutions have emerged in servicing and asset shops to try to manage this process. These systems complicate issues for staff, create silos of expertise, cause inefficiencies and missed dates, and drive up the overall timelines and costs of servicing defaulted loans.We can blame the mortgage crisis of 2008 for many of the shortcomings in default loan servicing. Faced with a barrage of mortgages entering default, mortgage servicers had to scramble to deal with the REO crisis. Preforeclosure and other default processing resorted to manual workarounds while the REO avalanche was the focus. A decade has passed, but few mortgage servicers have gone back to deal with the entire default-servicing process in an efficient way. Now is the time to address those issues, before the broadly anticipated turn in the market.A defaulted loan triggers a host of servicing subprocesses that are designed to offer lenders and borrowers adequate risk-mitigation options. Asset owners and/or servicers must take control of the rules for default servicing. This means implementing technology solutions that can control, automate, and help manage these rules across the supply chain.Asset owners/servicers must control the data or have direct and easy access to the data. This means form data, photographs, vendor compliance data, and performance data. Having access to and control of the data has multiple benefits for driving efficiency, compliance, auditability, risk-reduction, cost-reduction, process improvement, business intelligence, and ultimately, creating better outcomes for all stakeholders.Implementing standard forms, processes, measurements, and metrics across the supply chain means that data becomes normalized, useful, and measurable. We all know that “what gets measured gets accomplished.” Using standardization across property servicing in default will reduce costs, enable much easier upskilling of people, and facilitate easy measurement and performance improvements. Standardization can be implemented in this industry from top to bottom with all the mobile operators in the industry. They are willing and able to help.Implementation of the property-servicing model outlined in this article does not require asset owners/servicers to ramp up a large department of people to manage the process, nor does it mean you must stop using the trusted service providers you have been using for many years. It does mean that you must implement technology to help manage and drive the process.Through the implementation of technology to track rules from the top and capture standardized, normalized data means that property servicing can be implemented without hiring and using existing people and existing service providers. Different models can be implemented, from simple oversight and rules management to more in-depth control over the workflow and process. Options exist to suit each asset owner or servicer.A WAY OUT: THE PROPERTY SERVICING SOLUTIONImplementing a property-servicing platform that sits beside and complements loan servicing while focusing on the asset and not the loan allows servicers/asset owners to retain survival tools and manage NPLs effectively. This approach slashes default processing costs and leakage and helps servicers hold on to their hard-won profits. Property servicing uses a single platform for property-related data that is maintained and updated with key information in real time or near-real time, implements standards across the supply chain, allows every member of every department to work in one system, integrates to the servicing platform, ensures key dates are not missed, and houses and drives all the investor rules. This solution drives efficiencies, reduces leakage, enables compliance, manages vendors and service quality, integrates to services such as property registration or loss mitigation, captures data upfront for claims processing, and ultimately, leads to a smooth, normalized default servicing capability and management.Embracing this solution requires courage. Servicers and/or asset owners must require their service providers to use it. They must bite the bullet on project implementation. They must resource the project to turn this industry right side up. With bravery comes reward, and the losses being incurred to manage defaulted properties can be reduced dramatically. The proper investment in managing the defaulted asset through resolution can be achieved to the benefit of all stakeholders. The Best Markets For Residential Property Investors 2 days ago Related Articles in Daily Dose, Featured, News, Print Features, Story Crawl The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago November 23, 2018 4,883 Views Demand Propels Home Prices Upward 2 days ago About Author: Sean Ryan Previous: The Ripple Effect of Rising Home Prices Next: Examining the Shifts in Housing Values Borrowers Investors Lenders loans mortgage mortgage servicing Outsourcing Servicing Vendors 2018-11-23 Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more