FHFA: April Refinance Volume Similar to 2008

first_img Servicers Navigate the Post-Pandemic World 2 days ago FHFA: April Refinance Volume Similar to 2008  Print This Post Share Save in Daily Dose, Featured, Government, Headlines, News The Week Ahead: Nearing the Forbearance Exit 2 days ago Delinquency FHFA HARP Refinances 2014-06-23 Colin Robins Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / FHFA: April Refinance Volume Similar to 2008 The Best Markets For Residential Property Investors 2 days ago Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News’ sister site. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Home Flippers See Impressive Gains in 2013 Next: Bank Collapses Continue to Grow; Failures Total 11center_img The Federal Housing Finance Agency (FHFA) released its latest Refinance Report, examining data as of the end of April 2014. The FHFA found that overall refinance volume rose slightly in April, but remained at levels more comparable to those seen in 2008.The agency noted that mortgage rates remained between four to four and a half percent since June 2013. In April, the average interest rate on a 30-year fixed rate mortgage stayed put at March’s rate at 4.34 percent.Roughly 20,000 refinances were completed through HARP in April, bringing the total HARP refinances to approximately 3.1 million since the program’s inception.The government agency noted that borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers who were eligible for HARP but did not refinance through the program.Since the beginning of the program, roughly 2.6 million loans refinanced through HARP were for primary residences, with approximately 100,000 for second homes and 395,000 for investment properties.HARP refinances continued to represent a significant portion of homes that are deeply underwater. The FHFA noted that 10 percent of loans refinanced through HARP had a loan-to-value ratio greater than 125 percent. Borrowers with a loan-to-value ratio greater than 105 percent made up 30 percent of the volume of HARP loans.”Year to date through April 2014, 24 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages,” FHFA said.HARP continued to account for a substantial portion of total refinance volume in certain states, according to the FHFA. “Year to date through April 2014, HARP refinances represented 40 percent of total refinances in Georgia and 37 percent of the total refinances in Florida, nearly double the 20 percent of total refinances nationwide over the same period,” FHFA said. Sign up for DS News Daily June 23, 2014 1,296 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Delinquency FHFA HARP Refinances Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Colin Robins Demand Propels Home Prices Upward 2 days agolast_img read more

GDP Growth Slows Down But Still Beats Predictions for Q3

first_img October 30, 2014 1,399 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: Allstate Appraisal, Bradford Launch Third-Party Inspection Product Next: California Judge Dismisses $16 Million Verdict Against Servicer Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Tagged with: Bureau of Economic Analysis Consumer Spending Federal Reserve GDP Subscribe About Author: Tory Barringer Sign up for DS News Daily  Print This Post The nation’s economy continued to grow at a brisk clip in the third quarter, slowing down from the prior period but still beating forecasts.Gross domestic product (GDP) in the United States increased at an annualized rate of 3.5 percent last quarter, according to an advance estimate from the Bureau of Economic Analysis (BEA). Economists surveyed by Econoday anticipated a growth rate of 3.0 percent.The third quarter’s economic advance compares to an annualized 4.6 percent growth rate in the second quarter and a contraction of 2.1 percent in the first quarter.According to BEA, the increase in real GDP last quarter largely stemmed from contributions from consumer spending, exports, nonresidential fixed investment, and government spending at all levels. Except for federal government spending—which picked up significantly—growth decelerated across all of those categories, resulting in the lower overall rate of expansion compared to Q2.The GDP report comes a day after the Federal Reserve announced plans to close down its stimulative bond-buying program, signaling increased confidence in the economy’s progression.Whatever progress the Fed thinks the country has made, consumers might not be feeling as confident. According to Thursday’s report, consumer spending increased 1.8 percent in the third quarter, dropping from a pace of 2.5 percent in Q2. Meanwhile, personal income rose $152.9 billion, down from $223 billion as wage and salary growth slowed.Thursday’s report from BEA is the first of three the agency will release on third-quarter GDP. The next estimate, based on more complete data than what is available now, is scheduled for November 25.center_img 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. Servicers Navigate the Post-Pandemic World 2 days ago GDP Growth Slows Down But Still Beats Predictions for Q3 in Daily Dose, Featured, Market Studies, News 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 ago Share Save Related Articles Bureau of Economic Analysis Consumer Spending Federal Reserve GDP 2014-10-30 Tory Barringer Home / Daily Dose / GDP Growth Slows Down But Still Beats Predictions for Q3 The Best Markets For Residential Property Investors 2 days agolast_img read more

How is the Industry Coping with the Rapidly Declining REO Inventory?

first_imgHome / Daily Dose / How is the Industry Coping with the Rapidly Declining REO Inventory? The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago How is the Industry Coping with the Rapidly Declining REO Inventory? The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Banks Mortgage Servicers REO REO Inventory 2015-09-19 Brian Honea  Print This Post Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Banks Mortgage Servicers REO REO Inventory Related Articles Servicers Navigate the Post-Pandemic World 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago 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. in Daily Dose, Featured, News, REO Share Save Nationwide REO inventory is approximately one-third of what it was at its peak in early 2009 at the depth of the housing crisis. What will it mean for banks when the steadily declining REO inventory falls down to its “normal” pre-crisis level in less than two years, as is expected?What type of shifts or diversification is the mortgage industry experiencing right now as REO inventory continues to spiral downward?At the REO Lab at the 2015 Five Star Conference and Expo on Friday in Dallas, industry experts discussed how to get ahead and stay informed and equipped to take on the new REO marketplace.The first panel of the lab, “True State of REO: Market Analysis and Shadow Inventory,” included Roger Beane, President and CEO of LRES Corporation; Sharon Bartlett, Director of Vendor Services at Freddie Mac; and Clay Lehman, Principal, Resolute Asset Management. Beane said the future of REO, and of housing in general, could be determined largely by who wins the next presidential election.””Every four years you have that presidential election and you wonder how policy may change,” Beane said. “But certainly housing is an extremely important policy decision for any administration that comes through. How important housing is to them is going to be a reflection of how the industry from a regulation standpoint or a deregulation standpoint. All of these different policies will take effect. It’s a natural progression with any administration change, and we’ll know the effect within 2 to 3 years. It really depends on the policy and what these banks and owners of loans continue to do with their properties.”Joyce Essex, an agent with Coldwell Banker Real Estate, said one key to surviving when the REO volume is dwindling is focusing on an area or two of specialty. Essex was a panelist in the REO lab for the “Diversification and Adjusting for the Inventory” discussion.”Protecting yourself by diversifying the approaching to the marketplace with different types of products is vastly important. It’s the reason for survival.””Whether it’s REO or traditional sales, performing, probates, bankruptcies, investors, whatever it is, know that market, so when the market shifts, you have the knowledge, you know who your clients are, you know who the competition is, you know the laws, the rules, and you know the marketing and the technology,” she said. “Make sure that you specialize and really know what you’re working on at the time and hopefully have a couple of different spaces where you can add value to the client.”In the case of Auction.com, EVP Rick Sharga, a panelist in the lab for the “Understanding Auctions” discussion, said his company has already begun the shift from distressed properties to non-distressed.”When I joined Auction.com two years ago, I didn’t join the company to be there to watch the last foreclosure property fall off the auction manufacturing line. I knew then, because I’ve been following foreclosures for 13 years now, that we were looking at what was going to be diminishing pool of properties,” Sharga said. “So the notion was always to provide an online marketplace that provided a more efficient, more transparent, more flexible, faster way for people to buy and sell properties. We started on the distressed side because we were dealing with institutional sellers who were more sophisticated and less emotionally attached to a property. That’s given us the opportunity to build out the process and build our technology to where we’re ready to enter the consumer market. But the plan all along has been to be able to shift, as the distressed market gets smaller, into the broader, non-distressed residential retail market.”Diversifying to adjust for the declining inventory includes expanding product offerings, according to Beane.”In addition to selling REO properties as an asset manager, we have a valuations division, we have an HOA division, we have our own technology for valuations, and we do multiple products in multiple arenas,” Beane said. “We do origination evaluations and we do default evaluations. We’re protecting ourselves in a cyclical/countercyclical economy, and based on the trends, we’re able to cross-train our associates and grow our business through diversified product offerings in this industry. Protecting yourself by diversifying the approaching to the marketplace with different types of products is vastly important. It’s the reason for survival.”Editor’s Note: The Five Star Institute is the Parent Company of DS News and DSNews.com. September 19, 2015 1,114 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Collaboration Between Auction Companies and Agents is Crucial for Success Next: Five Star Celebrates Achievements of Women in Housing About Author: Brian Honea Sign up for DS News Daily Subscribelast_img read more

SFR Securitizations Keep Delinquency Rates Low

first_img  Print This Post Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / SFR Securitizations Keep Delinquency Rates Low in Daily Dose, Featured, News Servicers Navigate the Post-Pandemic World 2 days ago About Author: Brian Honea Delinquency Rates Morningstar Credit Ratings Single-Family Rental Securitizations Vacancy rates 2016-04-05 Brian Honea Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Previous: ARMA Acquisition, LCC Acquires Firm Solutions Next: The Long, Hard Road to GSE Reform Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Tagged with: Delinquency Rates Morningstar Credit Ratings Single-Family Rental Securitizations Vacancy ratescenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 5, 2016 1,242 Views The Best Markets For Residential Property Investors 2 days ago Delinquency rates remained low across single-family rental securitizations, with the average rate across 24 transactions coming in at 0.6 percent as of the end of February, according to data reported by Morningstar Credit Ratings in its March 2016 Single-Family Research: Performance Summary Covering All Morningstar Rated Securitizations released this week.Only four of the 24 transactions covered in the report had a delinquency rate of 1 percent or higher, according to Morningstar: ARP 2014-SFR 1 (American Residential Properties had the highest rate in February at 2.2 percent, holding steady from January’s rate. SWAY 2014-1 (SWAY Residential, which merged with Colony American Homes in January) came in at 1.3 percent, and TAH 2015-1 (Tricon American Homes) and PRD 2015-SFR2 (Progress Residential) each had delinquency rates of 1.0 as of the end of February. Half of the securitizations had a delinquency rate of 0.5 percent or less.Delinquency rates dropped in 19 of the 24 transactions in February and increased over-the-month for only one (SWAY 2014-1). The average delinquency rate for all transactions declined from 1.0 percent in December down to 0.8 percent in January and 0.6 percent in February, according to Morningstar.Lease expirations trended higher again in February, with 21 of the 24 transactions in the summary experiencing increases; January saw a similar trend, with 20 of the 23 transactions in that report experiencing increases in lease expirations.“Morningstar believes these increases may lead to higher vacancy and turnover rates in the coming months,” the report stated. “For now, though, overall vacancy rates dropped in February, as those higher expirations have not yet translated into unoccupied properties.”The vacancy rate for AH4R 2015-SFR 1 has dropped dramatically since peaking at 9 percent in November; by January, it had fallen to 6.9 percent, and by the end of February, it was at 5.3 percent. The vacancy rates for CAH 2014-1 and PRD 2015-SFR 1 have declined for six straight months and as of the end of February, totaled 3.4 percent and 4.1 percent, respectively, according to Morningstar.Click here to see the complete March 2016 Single-Family Rental Research: Performance Summary Covering All Morningstar-Rated Securitizations. Transactions covered in the summary are those from American Homes 4 Rent, American Residential Properties, Colony American Homes, Home Partners of America, Invitation Homes, Progress Residential, Silver Bay Realty, SWAY Residential, and Tricon American Homes. SFR Securitizations Keep Delinquency Rates Low The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 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 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. Share Save Subscribelast_img read more

CalyxSoftware Announces First Annual National User Conference

first_imgHome / Featured / CalyxSoftware Announces First Annual National User Conference  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 May 4, 2016 998 Views Related Articles Share Save The Best Markets For Residential Property Investors 2 days ago About Author: Xhevrije West Previous: Home Prices Nearly Halfway Recovered From Bottom Next: Bank of America Settles with FHLBank of Des Moines in Featured, News Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days agocenter_img Is Rise in Forbearance Volume Cause for Concern? 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago CalyxSoftware Announces First Annual National User Conference Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Calyx Software Mortgage Software Solutions CalyxSoftware, a provider of comprehensive mortgage software solutions for banks, credit unions, mortgage bankers, wholesale and correspondent lenders, and brokers, announced today that it will host ASCEND16, the company’s first national user conference.The conference will be held October 5-8, 2016 at The Hyatt Regency in New Orleans, Louisiana, the company stated.ASCEND16 is designed to help Calyx customers and partners ascend to the next level of success and prepare them for changing industry dynamics and show them how to take full advantage of all the capabilities of Calyx’s products and services.The user conference will feature more than 30 specialized breakout sessions and workshops for current customers of Point, PointCentral, PathSoftware, and LoanScoreCard, including C-level executives, business and operations managers, loan officers, underwriters, processors, lock desk staff, system administrators, and secondary market managers.Topics at ASCEND16 will include:Hands-on training and best practices for using Point, PointCentral, PathSoftware, and LoanScoreCardThe current state and future of the housing and mortgage marketsReaching the next generation of homebuyersUsing technology to improve the customer experience and boost productivityPreparing for regulatory examsGetting ready for upcoming HMDA changesLessons learned from TRID at the one-year anniversaryThe keynote speakers currently scheduled to appear at the general sessions include:Barbara Corcoran, real estate mogul and business expert from Shark TankDavid Pogue, host of NOVA ScienceNow & Yahoo Tech columnistCalyxSoftware noted that additional speakers and panelists, as well as the complete agenda, will be announced at a later date.“In today’s complex, compliance-focused environment, just delivering technology is no longer enough,” said Dennis Boggs, EVP, CalyxSoftware. “It’s important to help clients understand the changing lending landscape and how technology solutions can help drive their business goals. Over the past several years, we’ve offered smaller regional events, but given the massive changes our industry has faced over the past few years, we believe a national event is necessary and will allow us to help our customers feel more confident, capable and prepared for the road ahead.”Calyx customers interested in attending can visit CalyxASCEND.com for more information and to register. Demand Propels Home Prices Upward 2 days ago Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Calyx Software Mortgage Software Solutions 2016-05-04 Brian Honea Subscribelast_img read more

Refis at Fannie, Freddie Decline in Q2

first_img Demand Propels Home Prices Upward 2 days ago  Print This Post About Author: Radhika Ojha Delinquencies Delinquency Fannie Mae FHFA Freddie Mac HARP loans Refinance 2018-08-17 Radhika Ojha Sign up for DS News Daily Refis at Fannie Mae and Freddie Mac decreased in the second quarter, according to the quarterly Refinance Report by the Federal Housing Finance Agency (FHFA).The FHFA reported that together, the government-sponsored enterprises (GSEs)  completed 299,466 refinances in Q2, compared with 356,002 in the first quarter.Attributing the decrease in refi volumes in the second quarter to rising mortgage rates, the report indicated that total refinance volume decreased in June 2018 as mortgage rates rose in May, continuing a trend first observed in October 2017. “Mortgage rates decreased in June: the average interest rate on a 30‐year fixed rate mortgage fell to 4.57 percent from 4.59 percent in May,” FHFA said.Of the total refinances,  2,973 loans were refinanced through the Home Affordable Refinance Program (HARP), bringing the total number of HARP refinances to more than 3 million since the inception of the program in 2009, the report indicated.Although HARP is scheduled to expire on December 31, 2018, FHFA said that 49,094 borrowers could still benefit financially from a HARP refinance.”These borrowers meet the basic HARP eligibility requirements and have a remaining balance of $50,000 or more on their mortgage, a remaining term on their loan of greater than 10 years, and a mortgage interest rate that is at least 1.5 percent higher than current market rates,” FHFA said. “These borrowers could save an average of $2,290 annually by refinancing their mortgage through HARP.”The report revealed that during Q2 32 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages. According to the FHFA, these mortgages build equity faster than the traditional 30-year loans.Regionally, the report found 10 states that accounted for more than 70 percent of borrowers who remained eligible for HARP and had financial incentive to refinance their loans. They included Illinois, New Jersey, Ohio, Florida, Michigan, Pennsylvania, Maryland, Alabama, Georgia, and New York.The report also indicated that borrowers who refinanced through this program had a lower delinquency rate compared with borrowers eligible for HARP who did not refinance through the program.Click here to get all the details of the FHFA’s quarterly Refinance Report. Tagged with: Delinquencies Delinquency Fannie Mae FHFA Freddie Mac HARP loans Refinance Servicers Navigate the Post-Pandemic World 2 days ago Refis at Fannie, Freddie Decline in Q2 The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles in Daily Dose, Featured, News, Secondary Market Home / Daily Dose / Refis at Fannie, Freddie Decline in Q2center_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: The Industry Pulse: Updates on Auction.com, Radian, and More Next: a360inc and National Creditors Bar Association Announce National Partnership The Best Markets For Residential Property Investors 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 The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago August 17, 2018 1,422 Views Share 1Save Demand Propels Home Prices Upward 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Subscribelast_img read more

2019 Real Estate Outlook: What Can Investors Expect?

first_img  Print This Post Share Save Previous: Landlords Feel the Shutdown’s Strain Next: Spotlight on Single-Family Rentals Home / Daily Dose / 2019 Real Estate Outlook: What Can Investors Expect? The Best Markets For Residential Property Investors 2 days ago January 16, 2019 1,940 Views 2019 Global Alternatives Outlook 2019 Real Estate Market Investments JP Morgan Chase REITs 2019-01-16 Donna Joseph in Daily Dose, Featured, Market Studies, News Tagged with: 2019 Global Alternatives Outlook 2019 Real Estate Market Investments JP Morgan Chase REITs Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] Demand Propels Home Prices Upward 2 days ago Related Articlescenter_img Servicers Navigate the Post-Pandemic World 2 days ago 2019 Real Estate Outlook: What Can Investors Expect? Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Donna Joseph Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe In its latest report titled, “2019 Global Alternatives Outlook,” JP Morgan Chase sheds light on global trends and opportunities in the real estate industry. The report indicated that several investors in the U.S. real estate market have “tilted their new allocations to value-added properties in the search for higher returns, reaching an inflection point.” The key driver of this shift is a considerable increase in construction costs for property improvement or development that is thinning the return premiums for construction risk—leading to a limited supply of new core properties. This has allowed some stabilized, fully leased core properties to sell below the now elevated cost of building new unleased assets, the report stated. According to the report, since early 2016, the income from leases of existing U.S. core assets has been growing at a faster annual rate (4 percent to 5 percent ) than core property values (2 percent to 3 percent), since early 2016. JP Morgan Chase anticipates the rising construction costs to help support the increase in rental incomes. As new properties have to charge higher rents to be viable in the face of rising construction costs, existing core properties are forecasted to raise rents with less risk of losing tenants. However, according to the report, the upward spike in construction cost is likely to limit new space available for lease—another positive for rent growth. It indicated a further upside in core rents and valuations, given the econ­omy and demand continue to hold up.Speaking of REITs, the report stated that volatility has returned to the equity markets including the REIT space. It pointed out that REIT equity is far more volatile than the value of its underlying real estate, on account of its varied investor base comprising ETFs, hedge funds as well as momentum players. JP Morgan Chase indicated that investors may want to consider investing throughout the REIT capital stack and buying the debt—approaches that will meaningfully reduce a REIT portfolio’s volatility and offset the leverage embedded in REIT equity. The report also suggests the use of liquidity and volatility of the REIT market to potentially enhance returns.“Even in a market that is largely priced to perfection, knowledge­able, experienced global investors with a broad toolbox can find a robust set of attractive real estate opportunities,” the report reads. At a macroeconomic level, the report highlighted that tighter labor markets and rising wages have begun pushing prices higher across the developed world, while weaker currencies and higher commodity prices have lifted inflation in emerging markets. U.S. economic growth is forecasted to average around 3 percent through the middle of 2019. Globally, core real estate returns have averaged just over 10.5 percent since late 2010, the report revealed. Valuations have been a significant driver of those returns, however, leaving much of the real estate market fairly priced. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more

Economy: Recovery From Great Recession ‘Largely Uneven’

first_img Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago January 23, 2020 1,511 Views Related Articles The Best Markets For Residential Property Investors 2 days ago Great Recession housing market 2020 2020-01-23 Mike Albanese Share Save Previous: Supreme Court Offers Ruling on Bankruptcy Appeals Case Next: Smaller Cities Winning Big in Rental Demand Subscribe Tagged with: Great Recession housing market 2020 Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agocenter_img  Print This Post 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 About Author: Krista F. Brock Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Economy: Recovery From Great Recession ‘Largely Uneven’ Economy: Recovery From Great Recession ‘Largely Uneven’ While many seem to be looking forward, trying to determine when another recession will upend our nation’s economy, others seem to be glancing back wondering if we ever fully recovered from the Great Recession that sent shockwaves across the nation in 2008. Foreclosure rates have been wallowing at impressive lows for some time. ATTOM Data Solutions reported the national foreclosure rate last year was 0.36%. However, some feel the housing market has never fully emerged from that housing crisis. One market expert says we’re just now seeing “some signs that America’s housing crisis might be starting to abate.” Ben Wilterdink, Director of Programs at the Archbridge Institute, a think tank based in Washington, D.C., said in an article in The Hill, “The nation as a whole has largely recovered from the financial crisis. But the recovery has been deeply geographically uneven, with urban areas experiencing high levels of population growth and new business formation while rural areas remain much more economically stagnant.” Wilterdink pointed to data from the Economic Innovation Group demonstrating that more populous counties as well as counties that were already more prosperous have accounted for much of the “recovery” we’ve seen. In fact, the Economic Innovation Group says, “Were it not for prosperous zip codes, the country would still be several years away from a full employment recovery.” The most prosperous ZIP codes have millions more jobs than they did in 2007, while “distressed” ZIP codes “are unlikely to ever recover on current trendlines,” the research group said. Naturally, housing costs rose in those areas that experienced booming jobs and growing populations, and the rising prices have been and still are exacerbated by zoning laws and regulations that limit and deter new home construction. The lower-cost urban areas often have little to offer in the way of employment opportunities, and as Wilterdink points out, the effects also extend to educational opportunities. The median home price for ZIP codes that have the highest quality public elementary schools is $486,104, more than four times the median home price in ZIP codes with the lowest ranked public elementary schools, according to data from the Joint Economic Committee’s Social Capital Project. “Ultimately, the lack of affordable housing across much of the country is a problem from which America can only build its way out,” Wilterdink said. He added, “A functioning housing market where supply is allowed to meet demand is still a ways off,” he is reading optimism in a few recent developments. For example, the Department of Housing and Urban Development updated the Affirmatively Furthering Fair Housing rule to scale back restrictions on federal funding and encourage more housing construction. Also, California has taken steps to discourage restrictive zoning rules and allow homeowners to build accessory dwelling units on their lots. Wilterdink says other states are following suit.  Demand Propels Home Prices Upward 2 days ago 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. The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Fed Ups MBS Buying

first_img About Author: Phil Hall 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 July 17, 2020 1,963 Views Federal Reserve Mortgage-Backed Securities 2020-07-17 Mike Albanese Related Articles in Daily Dose, Featured, Government, News Tagged with: Federal Reserve Mortgage-Backed Securities Share Save Fed Ups MBS Buying Sign up for DS News Daily Home / Daily Dose / Fed Ups MBS Buying Phil Hall is a former United Nations-based reporter for Fairchild Broadcast News, the author of nine books, the host of the award-winning SoundCloud podcast “The Online Movie Show,” co-host of the award-winning WAPJ-FM talk show “Nutmeg Chatter” and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill’s Congress Blog and Profit Confidential. His real estate finance writing has been published in the ABA Banking Journal, Secondary Marketing Executive, Servicing Management, MortgageOrb, Progress in Lending, National Mortgage Professional, Mortgage Professional America, Canadian Mortgage Professional, Mortgage Professional News, Mortgage Broker News and HousingWire. Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Post The Federal Reserve purchased $22.686 billion in agency mortgage-backed securities (MBS) during the week from July 9 to July 15, up from its $21.685 billion in the previous week.The New York Federal Reserve Bank announced the purchase, adding the central bank did not sell any of its MBS guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae during this period. In the previous week, the Fed sold $3.6 billion worth of MBS.The Fed’s balance sheet has swelled from $4.2 trillion at the beginning of March to $7.2 trillion by mid-June. Bloomberg columnist Christopher Maloney observed that “volatility has plunged 67% from its decade-plus high seen before quantitative easing resumed March 16, and is now well below its trailing five-year average. That benefits MBS investors as the chance of a borrower having an incentive to refinance is in part a function of interest rate volatility over the life of the loan.”Anthony B. Sanders, Professor of Real Estate Finance in the School of Business at George Mason University, echoed Maloney’s observations in his Confounded Interest blog while pointing out a silver lining for the housing market in the current environment.“Ten-year Treasury Note volatility remains low as the Fed continues to flood the market with liquidity,” Sanders wrote. “The good news is that mortgage rates are at historic lows. More COVID = more economic shutdowns = more Fed intervention = lower mortgage rates.”But how long can the Fed maintain this strategy? An analysis published by Wells Fargo’s Research Team concluded the Fed “likely will continue to use the asset side of its balance sheet as needed to support the continued recovery of the U.S. economy, and the liability side will largely adjust in a mechanical fashion.”However, Wells Fargo also predicted that if the economy suffered another downturn, “then the FOMC likely would increase the size of the balance sheet sharply in an effort to support economic activity as much as possible.”As for the Fed itself, Chicago Fed President Charles Evans told the audience at a virtual event yesterday that the central bank plans to stay its course for the foreseeable future.“I am hard-pressed to think of reasons why we would need to move away from accommodative monetary policy unless inflation was well above 2% for an extended period of time, and the economy was just very different from what we are seeing right now,” said Evans during the presentation offered by the Global Interdependence Center. “That doesn’t seem to be very likely.” 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 Demand Propels Home Prices Upward 2 days ago Previous: Inability to Pay Mortgage Tops Consumer Complaints to CFPB Next: Ginnie Mae To Begin Accepting Digital Collateral The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

How Borrowers are Handling Pandemic-Prompted Budget Barriers

first_img Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / How Borrowers are Handling Pandemic-Prompted Budget Barriers Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Why Pending Foreclosure Wave Won’t Be Like the Last One Next: Despite Protections Mass Evictions Are Predicted Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days agocenter_img How Borrowers are Handling Pandemic-Prompted Budget Barriers The Best Markets For Residential Property Investors 2 days ago Related Articles Sign up for DS News Daily Click here for the full survey results.  About Author: Christina Hughes Babb Share Save 2020-09-03 Christina Hughes Babb  Print This Post September 3, 2020 893 Views A new study broke down some of the ways the pandemic is effecting homeowners with a mortgage. The results revealed that more than half of those who took out a mortgage during the pandemic regret it. A quarter of homeowners have refinanced and about half have entered forbearance agreements. Here is what else researchers discovered:COVID-19 has led to the closings of endless businesses, a rise in unemployment, and an economic recession, however, this era also is associated with an unseasonably hot housing market with mortgage interest rates at record lows.  “Homebuyers have come out in droves,” according to a recent LendEDU blog post.  The article cites the Mortgage Bankers Association numbers: Mortgage refinances are up 84% year-over-year, while mortgage applications have increased 22% compared to last year.  LendEDU dove into this unexpected trend by surveying 1,000 adult American homeowners that currently have an outstanding mortgage through a private lender. “Among many interesting trends, we found that new homeowners are regretting their decision to buy a house during the pandemic, while 26% have refinanced their mortgage during the pandemic, and 54% have seen incorrect negative credit marks for something like a missed payment despite agreeing to temporary forbearance,” reported LendEDU’s data journalist Mike Brown.  “94% of our respondents became homeowners with the help of a mortgage before the coronavirus pandemic began impacting the U.S. (before March 2020), while 6% became homeowners with the help of a mortgage during the pandemic (March 2020 to now). Amongst the latter, a combined 72% cited the coronavirus pandemic as the reason they decided to take out a mortgage to become homeowners, with many specifically attributing the current low-interest-rate lending environment.” LendEDU charted and broke down respondents’ answers to questions including: Did the coronavirus pandemic play any role in you becoming a homeowner with the help of a mortgage? (72% yes.) Do you regret becoming a homeowner during the coronavirus pandemic? (55% yes.) Did you receive a lower interest rate after refinancing your mortgage during the pandemic? (90% yes.) Have you struggled to repay your mortgage each month since the start of the coronavirus pandemic? (41%, of all respondents, yes.) Since the start of the coronavirus pandemic, have you entered into any type of pandemic forbearance or reduced monthly minimum payment agreement with your mortgage lender? (32%, of all respondents, yes.) How much longer is the pandemic forbearance or reduced minimum payment agreement going to last according to your mortgage lender? (30 days, 22%; 31-90 days, 30%; 61-90 days, 27%; 91 days or more, 14%; didn’t answer, 6%) and Since entering into pandemic forbearance or a reduced monthly minimum payment agreement with your mortgage lender, have you seen any negative marks on your credit report for something like a missed or insufficient payment despite this agreement? (54%, yes).   Subscribelast_img read more