MERS Wins Victory in Illinois Court Over Authority to Act as Mortgagee

first_img Previous: HUD Secretary Castro to Speak at DC Luncheon on January 13 Next: DS News Webcast: Wednesday 1/7/2015 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 An Illinois court ruled on Tuesday that mortgages naming Mortgage Electronic Registration Systems, Inc. (MERS) as the mortgagee are valid and enforceable, according to an announcement from MERSCORP Holdings, Inc.In the case of CitiMortgage, Inc. v. Schak, Judge Mitchell L. Hoffman on the Circuit Court of the 19th Judicial Circuit Court for Lake County, Illinois, rejected a borrower’s claim that a mortgage naming MERS as the mortgagee was invalid because MERS is not licensed under the Illinois Residential Mortgage License Act. Hoffman’s ruling was that MERS not being licensed under the ACT was not sufficient grounds for declaring the mortgage void and unenforceable.MERS was named as the mortgagee on the mortgage at the time it was originated. The borrowers had filed a motion to vacate the summary judgment and the order that approved the sale of the foreclosed property.The judge used as legal precedent the Seventh Circuit Court of Appeals ruling in Union County, Illinois V. MERSCORP, Inc. from January 2013 that the requirements of the Illinois Residential Mortgage Act, which was passed in 1987, do not apply to MERS because it “does not engage in the acts of brokering, funding, originating, servicing, or purchasing residential mortgage loans.””We are pleased that this Court recognizes that MERS has not done anything contrary to what is required by Illinois law and that mortgages naming MERS as the mortgagee are valid and enforceable,” MERSCORP Holdings Vice President for Corporate Communications Janis Smith said.MERS has won victories in courts in several states in the last year over borrowers facing foreclosure who challenged the company’s authority to act as mortgagee, including Massachusetts, Rhode Island, Ohio, New Hampshire, Montana, Idaho, Arkansas, and Texas. January 6, 2015 2,756 Views Illinois MERS mortgage servicing rights 2015-01-06 Brian Honea Demand Propels Home Prices Upward 2 days ago Tagged with: Illinois MERS mortgage servicing rights in Daily Dose, Featured, Foreclosure, News Home / Daily Dose / MERS Wins Victory in Illinois Court Over Authority to Act as Mortgagee Related Articles The Best Markets For Residential Property Investors 2 days ago Share Save Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago MERS Wins Victory in Illinois Court Over Authority to Act as Mortgagee Subscribelast_img read more

Senator Proposes Legislation to Help Underwater Borrowers Avoid Foreclosure

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. Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago avoiding foreclosure Preserving American Homeownership Act Senator Bob Menendez Underwater Borrowers 2015-06-17 Brian Honea U.S. Senator Bob Menendez (D-New Jersey) has proposed legislation that will help underwater homeowners avoid foreclosure and remain in their homes, according to an announcement on Menendez’s website.The Preserving American Homeownership Act is intended to help the estimated 5.1 million Americans who are underwater, or owe more on their mortgage than their home is worth. That number accounts for about 10 percent of homes with a mortgage in the United States, according to data recently released by CoreLogic. About 40 percent of those 5.1 million underwater borrowers (approximately two million) owe at least 25 percent more than their home is worth.Menendez’s home state of New Jersey was one of the areas hardest hit by the foreclosure crisis and has routinely ranked near the top among states for foreclosure rate. In April, 5.1 percent of all residential homes in New Jersey were in some state of foreclosure, the highest rate among states, according to CoreLogic. The national average for the month was 1.4 percent. New Jersey also had the nation’s highest serious delinquency rate (8.5 percent) during April.Compounding the problem is the high number of “zombie” foreclosures, or owner-vacated homes that are in the process of foreclosure but the process is not yet complete. Reports have indicated that New Jersey has the highest rate of zombie foreclosures in the nation. Many of the zombie foreclosure properties will end up sold in short sales or foreclosure auctions.”Far too many New Jerseyans are underwater on their mortgages and are all too familiar with the burden this brings,” Menendez said. “My bill aims to give homeowners the break they need by working with banks to find acceptable solutions for everyone. Not only can we help families stay in their homes, we can mitigate the impact zombie foreclosures have on our communities and our economy.”The national decline in home values since 2007 has caused many homeowners to be underwater on their mortgage. Those homeowners, who may be at risk of foreclosure and unable to sell their home because of the negative equity situation, are often forced to walk away from their mortgage. On the other hand, lenders and banks, fearing a loss of income, are reluctant to reduce the amount of principal owed on those mortgages.Menendez’s bill seeks to help both homeowners and lenders. In exchange for reducing the amount of principal owed, banks would be entitled to a portion of any future increase in value the home might experience. This gives the underwater homeowners relief on their mortgages while banks take a short-term reduction in exchange for a long-term gain pending the housing market recovery. Menendez said in his announcement that 80 percent of homeowners offered the chance to participate in a similar program offered by a private servicer agreed to do so and subsequently re-defaulted at a rate of just 2.6 percent.”The sad fact is that millions of homeowners still have underwater FHA and FHFA mortgages and many are facing foreclosure,” said Phyllis Salowe Kaye, Executive Director of New Jersey Citizen Action. “Principal reduction is the most effective way to keep people in their homes, to prevent foreclosures and to stabilize neighborhoods that have been decimated by vacant and abandoned properties. Senator Menendez’s bill offers real solutions. It should be supported and passed quickly by Congress.”Click here to view the bill’s full text. Home / Daily Dose / Senator Proposes Legislation to Help Underwater Borrowers Avoid Foreclosure The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Senator Proposes Legislation to Help Underwater Borrowers Avoid Foreclosure June 17, 2015 1,389 Views in Daily Dose, Featured, Government, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: avoiding foreclosure Preserving American Homeownership Act Senator Bob Menendez Underwater Borrowers Previous: OCC to Escheat Uncashed Foreclosure Relief Funds; Restrictions Placed on Chase, Wells Fargo Next: Non-Foreclosure Solutions Continue to Outpace Completions Five to One About Author: Brian Honea Subscribelast_img read more

Fannie Mae’s First Community Impact NPL Pool Goes to New Jersey Non-Profit

first_img The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Community Impact Pool Deeply Delinquent Loans Fannie Mae Non-Performing Loans NPL Sales 2015-09-02 Brian Honea Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Fannie Mae’s First Community Impact NPL Pool Goes to New Jersey Non-Profit 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. Tagged with: Community Impact Pool Deeply Delinquent Loans Fannie Mae Non-Performing Loans NPL Sales Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img in Daily Dose, Featured, News, Secondary Market About Author: Brian Honea Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: AACER: Third-Lowest Monthly Bankruptcy Filings Total of 2015 Reported in August Next: Most Fed Districts Report Positive Residential Real Estate and Economic Activity Fannie Mae announced Wednesday that non-profit New Jersey Community Capital (NJCC) is the winning bidder for the GSE’s first-ever Community Impact Pool of deeply delinquent non-performing loans (NPLs).The Community Impact Pool of NPLs was specifically structured to attract bidding by non-profits, small investors, and minority- and women-owned businesses (MWOBs). Fannie Mae marketed the Community Impact Pool at the same time as two larger pools consisting of approximately 3,900 NPLs, which sold in mid-August for a combined $765 million. The winning bidder in that transaction was Lone Star (LSF9 Mortgage Holdings, LLC).The smaller Community Impact Pool consists of 75 high-occupancy and geographically focused loans in the Tampa, Florida, area with about $11 million in unpaid principal balance (UPB). The transaction is expected to close on October 26, 2015, according to Fannie Mae. The winning bidder, NJCC, is a nonprofit community development financial institution (CDFI) that transforms at-risk communities through strategic investments of capital and knowledge.”We’re proud to partner with New Jersey Community Capital to help neighborhoods stabilize and recover,” said Joy Cianci, Fannie Mae’s SVP for Credit Portfolio Management. “This sale will reduce our holdings of non-performing loans while giving homeowners additional options to avoid foreclosure. We will continue to structure loan sales to foster participation of non-profits and small investors and we look forward to working closely with these groups.”Fannie Mae began marketing its second NPL sale, which included the Community Impact Pool, to potential bidders on July 16 in collaboration with Credit Suisse Securities, Wells Fargo Securities, and the Williams Capital Group. The cover bid price for the Community Impact Pool is 81.43 percent of UPB (67.13 percent of the broker’s price opinion, or BPO). For the 75 loans, the average loan size was $143,572 and the average note rate was 5.43 percent. The loans were an average of approximately 39 months delinquent, and the average BPO loan-to-value was 82 percent.”This sale will reduce our holdings of non-performing loans while giving homeowners additional options to avoid foreclosure.””We are thrilled for the opportunity to continue to expand NJCC’s innovative foreclosure mitigation and prevention programs in Florida to help keep families in their homes and enable distressed communities to flourish,” said Wayne T. Meyer of NJCC. “Through our loss mitigation programs, which utilize principal reduction as a key part of right sizing borrowers’ first mortgage debt, we have already helped over 200 homeowners in Florida and look forward to continuing this progress.”In May, Fannie Mae closed its first-ever bulk NPL sale. That transaction included approximately 3,000 deeply delinquent residential single-family mortgage loans totaling about $762 million in UPB.Click here for more information on NPL sale guidelines and registration for ongoing announcements, training, and other information. Subscribe September 2, 2015 1,353 Views Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Fannie Mae’s First Community Impact NPL Pool Goes to New Jersey Non-Profit Sign up for DS News Daily  Print This Postlast_img read more

Credit Default Swap Market Has Fallen Dramatically Since the Crisis

first_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Subscribe Credit Default Swaps KBRA Kroll Bond Ratings Agency 2015-11-27 Brian Honea The Best Markets For Residential Property Investors 2 days ago November 27, 2015 3,402 Views Credit Default Swap Market Has Fallen Dramatically Since the Crisis Share Save in Daily Dose, Featured, Market Studies, News The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily 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 The Best Markets For Residential Property Investors 2 days agocenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brian Honea Home / Daily Dose / Credit Default Swap Market Has Fallen Dramatically Since the Crisis Tagged with: Credit Default Swaps KBRA Kroll Bond Ratings Agency Previous: Freddie Mac: ‘Vast Majority’ of Housing Markets Still Trying to Get Back to ‘Normal’ Next: GSEs’ Maximum Conforming Loan Limits Will Remain Largely Unchanged for 2016 The credit default swaps (CDS) market has declined dramatically since the financial crisis. Trading volumes in CDS—which are financial swap agreements in which the seller agrees to compensate the buyer of the CDS in the event of a loan default—are a mere one-fourth of what they were in 2008, totaling less than $9 trillion in amount outstanding nationally as of June 2015.What is the cause of the substantial drop in the CDS market, and what can be done to bring it back up?A report titled “Can the Credit Default Swap Market be Salvaged?” from the Kroll Bond Ratings Agency (KBRA) states that new laws and regulations focused on reducing the risk of over-the-counter (OTC) derivatives products is partly to blame for the dramatic decline. But KBRA also said in the report they believe the decline is “part of a larger trend by large, systemically significant global banks to move away from products and markets that are seen as problematic.” Raising some troubling questions for both borrowers and investors is the settlement agreed to by some of the world’s largest banks regarding accusations of conspiracy to limit competition in the credit derivatives market, KBRA said.The secular decline in CDS trading raises the question as to whether the declining trend in credit derivatives trading since the crisis will be reversed—or if it can be reversed, according to KBRA. Currently, many nonbanks are entering the OTC credit derivatives market as large banks exit the space, and the nonbanks are offering trading products and clearing services that directly compete with commercial banks, according to KBRA.A number of defects remain in the market structure of OTC credit derivatives despite significant changes in regulation, and these defects have arguably intensified the effects of the 2008 crisis and become a disadvantage to both investors and borrowers, KBRA said.These defects in the market structure of OTC credit derivatives:Limit competitionMake it difficult for investors to understand the risks that large universal banks takeCreate the potential for manipulation of borrower credit spreadsAffect recognition of when defaults under CDS contracts occurThe “obvious” potential conflict between the banks’ role as lender/underwriter of the securities on one hand and credit derivatives trader on the other is one of the most important but also one of the leas talked about structural defects in the CDS market, according to KBRA.“When large universal banks act as both providers of credit and dealers in CDS, there is obviously the potential—if not the reality—for conflict,” KBRA stated. “This dual role gives CDS dealer banks both the incentive and the means to use CDS to manipulate the worldwide price and allocation of credit.”The simplest ways for Congress and other regulators to address the remaining structural defects in the CDS market are, according to KBRA:Prohibiting cash settlements of credit default contractsRequire that all CDS exposures be brought back “on balance sheet” with enhanced disclosure“We also believe that Congress and prudential regulators need to look at the potential for conflict of interest when large banks act as both lenders and dealers in securities and CDS,” KBRA said.Click here to read the complete report. Related Articles 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 Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

DS News Webcast: Wednesday 8/10/2016

first_img Is Rise in Forbearance Volume Cause for Concern? 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago 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. Demand Propels Home Prices Upward 2 days ago Home / Featured / DS News Webcast: Wednesday 8/10/2016 Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily August 9, 2016 1,112 Views About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago 2016-08-09 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post DS News Webcast: Wednesday 8/10/2016 Previous: Freddie Mac Updates Home Possible Tool for Lenders Next: Let the Bidding Begin: Seventh Non-Performing Loan Sale Announced Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Metro areas that experienced more foreclosures during the housing bust have seen a larger increase in the share of single-family homes that are rented, according to a recent report from Zillow. The increase in the share of single-family homes that are rented has shown to be most prominent in the Southwest United States. Zillow states that a growing share of single-family homes are now being rented, and by extension, more of the country’s rental market is now composed of single-family homes.The report states that for much of the 1980s and 90s, the share of single-family homes that were rented hovered between 12 percent and 15 percent, with that share slightly decreasing during the housing boom years. Since the housing bust, though, the share has skyrocketed and has increased from 13.4 percent in early 2007 to 18.8 percent by early 2015. Similarly, for much of the 1980s and 90s single-family homes accounted for roughly one-quarter of the country’s rental market. The report states that in spring 2007, single-family homes were 30.5 percent of all rental units but by spring 2015, they were 36.5 percent of all rental units.Continuing an unfortunate trend for non-bank mortgage servicers in the second quarter of 2016, Walter Investment Management reported a net loss of $232 million for the three-month period ending June 30, 2016, according to the company’s Q2 2016 earnings report released Tuesday. One result of the losses for Walter Investment was a change in leadership. The company reported that they have hired an industry veteran as permanent CEO who is expected to start sometime during Q4. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Featured, Media, Webcastslast_img read more

How Could Tax Reform Hurt the Housing Market?

first_img 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] How Could Tax Reform Hurt the Housing Market? The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Tax reform is one of the major ticket items on the current administration’s agenda, a measure that Congress hopes to tackle now that they are back from summer recess. When President Donald Trump first announced his modified tax plan—the first comprehensive change in 30 years—one of the main amendments was the elimination of itemized tax deductions, which would be replaced by doubling the standard deduction.However, two subgroups in the housing industry that would stand to lose on this change rather than benefit: real estate agents, and residential builders.Real estate agents could see a trickle-down effect if the tax incentives for homeownership is weakened, according to the National Association of Realtors (NAR) Tax Reform August Recess Talking Points. They hold the opinion that limited itemized deductions will not entice enough homeowners to enter the housing market when inventory is short and prices continue to rise. Further, “Homeowners already pay 83 percent of all federal income taxes, and this share would go even higher under similar reform proposals. Homeowners should not have to pay a higher share of taxes because of tax reform.”Residential builders could also be affected by changes to the tax code, according to the National Association of Home Builders, who also agree that doubling the standard deduction would have adverse effects on the mortgage interest deduction, even if it remains intact, and ultimately, “reduce housing demand and lead to lower home values.” Both organizations agree on the fact that tax reform is long overdue, but it cannot be at the expense of homeownership or the housing industry.Secretary of Treasury Steve Mnuchin has said both he and the president would like to have a draft of tax reform before 2017 comes to a close. September 5, 2017 2,699 Views Tagged with: NAHB NAR Tax Reform NAHB NAR Tax Reform 2017-09-05 Joey Pizzolato About Author: Joey Pizzolato Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, Headlines, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / How Could Tax Reform Hurt the Housing Market? Previous: Cordray Skirts the Question Next: Harvey Survivors: HUD’s Top Priority  Print This Post The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

Home Sale Activity Indicating Economic Shifts

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Previous: African-American Homebuyers Still Feeling Impact of Great Recession Next: Freddie Mac Settles $1.3B Trust Offering Pending home sales dropped in October, signaling a decline in inventory and a small rise in mortgage rates in October from September, according to the National Association of Realtors. However, despite the slowdown, economic conditions still seem positive.“While contract signings have decreased, the overall economic landscape remains favorable,” said Lawrence Yun, NAR’s chief economist. “Mortgage rates continue to be low at below 4%, which will attract buyers, employment levels are strong and many recession claims have dissipated.”NAR’s Pending Home Sales Index (PHSI) fell 1.7% to 106.7 in October. Year-over-year contract signings jumped 4.4%. NAR notes that an index of 100 is equal to the level of contract activity in 2001.“We still need to address and, more importantly, correct inadequate levels of inventory across the country,” Yun said. “There is no shortage of buyers seeking homes, but a lack of available units continues to drag down the nation’s housing market and overall economy.”“We risk a lingering shortage of sufficient inventory if homebuilding only continues at its current pace over the next 20 years, when the U.S. population is projected to increase by more than 40 million over this period. Clearly, home builders must step in and construct more housing.”With the exception of the Northeast, all regional indices saw declines in October. The PHSI in the Northeast rose 1.9% to 95.7 in October, 3.0% higher than a year ago. In the Midwest, the index slid 2.7% to 101.4 last month, 1.8% higher than in October 2018.Pending home sales in the South decreased 1.7% to an index of 125.3 in October, a 5.1% increase from last October. The index in the West declined 3.4% in October 2019 to 91.9, which is an increase of 7.5% from a year ago. Data Provider Black Knight to Acquire Top of Mind 2 days ago Home Prices Mortgages Sales 2019-11-27 Seth Welborn Tagged with: Home Prices Mortgages Sales Home / Daily Dose / Home Sale Activity Indicating Economic Shifts Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Home Sale Activity Indicating Economic Shifts About Author: Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago November 27, 2019 660 Views Sign up for DS News Daily Subscribelast_img read more

Freddie Mac: Finding Solutions to ‘Areas of Concentrated Poverty’

first_img Related Articles Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily December 23, 2019 2,150 Views Home / Daily Dose / Freddie Mac: Finding Solutions to ‘Areas of Concentrated Poverty’ Freddie Mac: Finding Solutions to ‘Areas of Concentrated Poverty’ Previous: Digitizing Mortgage Processes Next: Fed Mortgage-Backed Securities Update: To Sell or Not? Freddie Mac mixed income 2019-12-23 Mike Albanese Tagged with: Freddie Mac mixed income Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img  Print This Post 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 Share Save The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Krista F. Brock The Week Ahead: Nearing the Forbearance Exit 2 days ago More than 19% of Americans—more than 61 million people—live in so-called “areas of concentrated poverty,” which are defined by “persistently high poverty levels, low economic opportunity and high housing costs relative to income,” according to Freddie Mac. This is significant because living in and growing up in poverty can have long-term impacts spanning from lower-quality education to lower quality health. Freddie Mac suggests one solution for bringing economic mobility to areas of concentrated poverty is mixed-income housing, and the GSE has helped finance such developments. In a recent white paper, Freddie Mac explored the idea of mixed-income housing, highlighting a few successes as well as pointing out a few obstacles that could prevent these developments from succeeding in all “areas of concentrated poverty.”“The development and transformation of an area of concentrated poverty can help revitalize the local economy by growing the tax base, leading to increased public investment and increased economic opportunity over time,” said Steve Guggenmos, VP of Multifamily Research and Modeling, Freddie Mac. “As these areas grow and develop, mixed-income and social impact housing are instrumental in encouraging residential economic diversity and preventing the displacement of long-time residents.”Mixed-income housing properties offer units at market rate and other units below-market rate for lower-income tenants. Most often, the balance is 80/20, with 80% of units going at market rate and 20% reserved for low-income residents and available at a restricted rent level.Freddie Mac noted that, “Ultimately, the optimal percentages of restricted and unrestricted units are dependent upon market conditions.” However, tipping the scales too far will prevent a property from being “economically feasible,” forcing rents on unrestricted units above market rate or potentially requiring more public subsidy than is available. Public subsidies are often relied on in mixed-income housing. However, “socially conscious” private equity firms can also help with funding. One such firm, Turner Impact Capital, made the Regency Pointe mixed-income housing in the Washington D.C. metro area possible without a need for public subsidy, according to Freddie Mac. Mixed-income housing can help improve affordable housing conditions for low-income residents, provide amenities for those residents, and help bolster an area’s economy, they come with limitations. While speaking of the success of its mixed-income development investments, Freddie Mac also admitted, “fostering residential economic diversity and increasing access to opportunity for low-income residents through the development of mixed-income housing is ACPs is not an easy task.” For a mixed-income development to be viable, the high-poverty area must also be attractive to higher earners, which means it should be in close proximity to a booming job market or perhaps be an area in the midst of revitalization, which is the case with several of the developments Freddie Mac has backed.  Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

The Week Ahead: Update on CARES Act

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Update on CARES Act Home / Daily Dose / The Week Ahead: Update on CARES Act May 17, 2020 1,263 Views  Print This Post in Daily Dose, Featured, Government, News Share 2Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe About Author: Seth Welborn Related Articles Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago On Monday, Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell will update Congress on the CARES Act and the next steps for the Act’s programs.The U.S. Department of the Treasury and the Internal Revenue Service announced earlier this month that 130 million Americans have received Economic Impact Payments, worth more than $218 billion. “This Administration has delivered Economic Impact Payments to Americans in record time,” said Treasury Secretary Steven T. Mnuchin. “More payments are on their way as we continue to deliver this much-needed relief to the American people.”The Treasury expects to deliver more than 150 million Economic Impact Payments in total.A report by Redfin found that 75% of the nation’s renters could afford to pay a single month’s housing expenses with the max sum of $1,200, while only 50% of America’s homeowners could do the same.Additionally, the U.S. Department of Housing and Urban Development (HUD) announced the allocation of the third wave of CARES Act relief totaling $1 billion through its Community Development Block Grant (CDBG) program.HUD has provided over $3 billion in CDBG funding to combat the effects of COVID-19.“Coronavirus has impacted our communities and populations in unprecedented ways, and while some begin to see a decline in reported cases, others continue to fight this invisible enemy aggressively,” said HUD Secretary Dr. Benjamin Carson. “This funding will afford states the ability to respond to the unique circumstances they are facing—from reducing the risk of transmission to regaining the sound footing of their economy. This is the third wave of funding the Department has provided to States, and we will continue to execute a detailed and swift response until the days of COVID-19 are behind us.”Here’s what else is happening in the Week Ahead:DS5: Inside the Industry videos (May 18, 20, 22)U.S. Census Bureau Housing Starts, Permits (May 19)NAR Existing Home Sales (May 21) The Best Markets For Residential Property Investors 2 days ago Previous: Servicing Experts Talk Forbearance Practices Next: Recession Versus Depression: Housing Impact Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. CARES act 2020-05-17 Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Tagged with: CARES actlast_img read more

The Rise of Fintech in Housing

first_img July 1, 2020 2,367 Views  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tim Mayopoulos is the President of Blend, a Silicon Valley technology company propelling the $40 trillion consumer banking industry into the digital age through partnerships with banks, lenders, and other technology providers. Before joining Blend in 2019, Tim served as President and CEO of Fannie Mae for more than six years.Under his leadership, the company returned to sustained profitability, delivered more than $167 billion in dividends to taxpayers, and introduced new technologies to the housing finance system to make mortgage lending faster, safer and more transparent. Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago What does Quicken’s decision say about the state of FinTech in housing?There’s clearly a great demand for technological innovation in the mortgage industry. The idea that Quicken is looking at going public is a confirmation of that. There are many technology providers in the space. Most of them are venture capital-backed companies like ours, Blend, and as demand for financial technology continues, these companies continue to proliferate. There’s a desire on the part of consumers to be able to apply for a mortgage and have it be a comparable experience to what they do on Amazon, or what they experience when they use their iPhone, or what they do when they watch movies on Netflix. Consumers expect that applying for a mortgage should be no different than any other consumer transaction. It should be simple, and elegant, and efficient, and fast, and it should help lenders lower costs.There are clearly consumer expectations around this, but what I’ve noticed is that the expectations of lenders have also changed. They recognize that they can be much more efficient, they can be more cost-effective, they can create a differentiated experience for their customers, the borrower. Share Save Home / Daily Dose / The Rise of Fintech in Housing 2020-07-01 Mike Albanese Subscribe What was your reaction to the Quicken Loans IPO?Well, my initial reaction was that it’s not every day that you see a mono-line mortgage lender file to become a public company but then as I reflected on it, I think it makes sense for Quicken to be doing what it’s doing. It’s obviously achieved a leadership position and it has good market conditions in which to do an IPO, with interest rates low and expected to be low for the foreseeable future. Mortgage origination on the refi side should continue to be pretty high and the purchase market should be strong as well, at least once we get through the pandemic. There is an imbalance in supply and demand in housing markets, so we should expect there to be home price appreciation and continued demand for homes. We’ve got the biggest generation in history, the millennials, coming of age, and they all express the same desire for homeownership as previous generations. There’s just been a chronic shortage of housing creation in the country over more than the last decade. The macro market conditions for Quicken are very favorable.Quicken has been successful in growing and in differentiating itself from other lenders. Quicken is as much a technology company as it is a mortgage lending company and they’ve been innovators in the technology space. Because they have established a unique value proposition for the market, they may have an opportunity that’s appealing to IPO investors. About Author: Mike Albanese in Daily Dose, Featured, News Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Rise of Fintech in Housing Governmental Measures Target Expanded Access to Affordable Housing 2 days ago How could Quicken Loan’s decision spur other FinTech companies to do the same? Quicken has, for some time, been a catalyst for change in the mortgage industry. I remember when I was the CEO of Fannie Mae, Quicken Loans announced Rocket Mortgage, which at the time might’ve been more hype than reality. The good thing about that was that it set a new standard in the industry. It really awakened a lot of people’s ideas as to what consumers would and could expect in terms of a more digital and more automated origination process. That has served as a catalyst for the entire industry, including the FinTech industry supporting mortgage, to pursue that ultimate goal. The conditions are very favorable for FinTech companies going forward in housing finance to continue to drive towards that aspiration and to continue to attract capital. Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Previous: Online Foreclosure Services Expanded Next: Ginnie Mae Announces Borrower Relief Options Sign up for DS News Daily Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. How will this pandemic impact the use of technology within the mortgage and housing markets?The pandemic is an additional accelerant on the transformational change that’s happening in housing finance. We’ve seen this underway for quite some time. Consumers want to be able to apply for a loan and have it fulfilled from anywhere, including from their couch in their pajamas if they want to. The pandemic is only reinforcing those consumer expectations. More importantly, the pandemic has taught the mortgage industry, which has historically been very conservative and cautious about change, that a lot of change can actually be achieved in a relatively short period of time, very effectively. It was just a few months ago that the entire industry essentially decided to go operate remotely, and many people wondered whether the industry would be able to adapt to that. What we found is that the industry largely was able to be nimble and meet changing consumer expectations and needs to a large extent.We at Blend have been working with our lender customers to respond to challenges created by the pandemic, specifically in the areas of managing the huge influx of refinance volume through process automation, and perhaps even more importantly on providing fully digital closings.Understandably, consumers don’t necessarily want to have appraisers show up at their homes during a pandemic, and they certainly don’t want to go to an in-person closing with a room full of people.  This illustrates the pivot that everybody in the industry needed to make an order to be able to continue to operate their businesses in a new way. Working remotely has given the industry newfound confidence that technological change can actually be adopted quickly, and effectively, and in relatively short order. It’s going to reduce some of the reticence, some of the conservatism, that the industry has historically shown towards adopting new ways of doing things. Apart from the public health issues themselves, the pandemic has created a little bit of an experiment where lenders and others in the housing finance system have had to adapt to new circumstances very quickly. They have found that they can do that and that technology can help drive that change very effectively.There clearly was already a lot of momentum underway in the mortgage industry towards becoming more technologically advanced. I think the pandemic is going to accelerate that tenfold because people see that not only is it possible, but it’s actually more easily achievable than many might have thought.last_img read more