Month: May 2021

A Look Back at Eight Years of Conservatorship of the GSEs

first_img Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News Demand Propels Home Prices Upward 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tuesday marks the eight-year anniversary of the conservatorship of Fannie Mae and Freddie Mac. In response to a substantial deterioration in the housing markets that severely damaged Fannie Mae and Freddie Macs’ financial condition and left them unable to fulfill their mission without government intervention. On September 6, 2008, FHFA used its authorities to place Fannie Mae and Freddie Mac into conservatorship.FHFA launched initiatives to recover losses resulting from the housing crisis of 2008 as well as avoid further liability to Fannie Mae and Freddie Mac. The agency sought to decrease the amount of outstanding repurchases, and they worked to also decrease the amount of loans originated with manufacturing defects due to poor underwriting standards. Finally, FHFA assumed actions to decrease the amount of operational loss events at Fannie Mae and Freddie Mac.The FHFA notes that a key component of the conservatorship is the commitment of the U.S. Department of the Treasury to provide financial support to Fannie Mae and Freddie Mac to enable them to continue to provide liquidity and stability to the mortgage market. In doing so, the Treasury Department has provided $189.5 billion in support. This includes an initial placement of $1 billion in both Fannie Mae and Freddie Mac at the time of the conservatorship and an additional cumulative $187.5 billion investment from the Treasury Department.In addition, as conservator, FHFA assumed the authority of the management and boards of Fannie Mae and Freddie Mac during the period of the conservatorship. The agency states though that while it has broad authority over Fannie Mae and Freddie Mac, the focus of the conservatorship is not to manage every aspect of their operations.At the time of their conservatorship in September 2008, Fannie Mae’s total outstanding debt stood at $843 billion and Freddie Mac’ total outstanding debt stood at $814.9 billion. As of their most recent monthly volume summary report for July, Fannie Mae’s total outstanding debt stands at $362.3 billion and Freddie Mac’s total outstanding debt stands at $389.4 billion. Both of the GSE’s have reduced their outstanding debt by over half.In regards to the aggregate unpaid principal balance for the GSEs, both Fannie Mae and Freddie Mac have seen a reduction of over half since the time of conservatorship to the most current report in July 2016. Fannie Mae sits at an aggregated UPB of $308.9 billion compared to an aggregated UPB at the time of conservatorship in September 2008 of $761.4 billion. Likewise, Freddie Mac sits at an aggregated UPB of $319.3 billion in comparison to an aggregated UPB in September 2008 of $736.9 billion.Not everyone shares positive feelings for the conservatorship of the GSEs, though. The subject of GSE reform has long been a hotly contested one among lawmakers and the housing industry. Though both Democrats and Republicans have pushed for GSE reform in recent years, little has been done by Congress to change the conservatorship or even consider a path toward reforming the current system. Recently though, GSE reform has been hot in the news, with parties on both sides of the aisle making pushes in Congress.In mid-May, 12 right-center organizations wrote a letter that urged Congress to pass the Mulvaney Bill, a GSE reform bill sponsored by Rep. Mick Mulvaney (R-South Carolina) that would suspend the GSE’s obligation to fund the National Housing Trust Fund and Capital Magnet Fund until they were better capitalized.Not long after that, a group of 32 Democratic House of Representatives members wrote to Treasury Secretary Jack Lew and FHFA Director Mel Watt to demand reassessment of the Preferred Stock Purchase Agreement (PSPA), which requires the GSEs to have a capital buffer of zero by January of 2018. This request came on the back of Watt’s February speech at the Bipartisan Policy Center, when he proclaimed the GSEs’ capital buffer as one of the biggest risks of conservatorship to date.Additionally, a new bill was proposed by Congressman French Hill (R-Arkansas) in June, called the HR 5505 GSE Review and Reform Act. The bill would require the U.S Treasury Secretary to study the Federal Housing Finance Agency’s conservatorship of Fannie Mae and Freddie Mac annually, as well as the impact ending that conservatorship might have. The bill would also require the Treasury to present recommendations to Congress each year on how to progress GSE reform and move toward ending the conservatorship.The next move for the GSEs is still unclear and it may be until a new administration takes office for there to be any movement with GSE reform, but one thing is for certain; the FHFA’s conservatorship has had a large impact on not just Fannie Mae and Freddie Mac but the industry as a whole. Previous: RedVision Acquired by First American Next: Winning Bidders Announced in Recent NPL Sale A Look Back at Eight Years of Conservatorship of the GSEs About Author: Kendall Baer Tagged with: Conservatorship Fannie Mae FHFA Freddie Mac GSE U.S. Department of the Treasury Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago September 6, 2016 1,476 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Sign up for DS News Daily Conservatorship Fannie Mae FHFA Freddie Mac GSE U.S. Department of the Treasury 2016-09-06 Kendall Baer Related Articles Home / Daily Dose / A Look Back at Eight Years of Conservatorship of the GSEs Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Health of Housing is Rising in the East

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Aly J. Yale is a freelance writer and editor based in Fort Worth, Texas. She has worked for various newspapers, magazines, and publications across the nation, including The Dallas Morning News and Addison Magazine. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more. Health of Housing is Rising in the East Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Subscribe Previous: St. Louis Fed: Foreclosure Crisis Nears Conclusion Next: Get Ready for Higher GSE Modification Rate The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Home / Daily Dose / Health of Housing is Rising in the East Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Aly J. Yale Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Share Save January 12, 2017 1,243 Views Tagged with: Cleveland Fed REO in Daily Dose, Featured, News, REO Cleveland Fed REO 2017-01-12 Brian Honea The housing market in Ohio, Western Pennsylvania, Northern West Virginia, and Eastern Kentucky is turning around, as a recent report reveals declining REO numbers in the region for the second year in a row.According to the Community Stabilization Index released Thursday by the Federal Reserve Bank of Cleveland, 2016 was the second consecutive year that bank-owned property numbers declined in the Fourth Federal Reserve District.“The continuing decline in the stock of real estate owned, or REO properties indicates that housing markets are continuing to improve in the District,” said Brett Barkley, Senior Research Analyst with the Cleveland Fed.According to the Fed’s release, the drop in REO properties is due, in large part, to the decline in mortgage delinquencies and foreclosures recently.“The data suggest that banks have been more willing or more able to sell their properties of late,” Barkley said.The index also revealed that the median value of originations and refinances are on the rise in all 15 metro areas it tracks. Additionally, originations activity overall is up across the district, except in the Lima, Ohio, area.Though the upticks are a positive note for many of the district’s communities, in some areas—particularly those most affected by the housing crisis—it has not yet become a sustained upswing.“We don’t see this same kind of functioning housing market coming back to the hardest hit zip codes,” Barkley said. “In some of the neighborhoods we profile in this update, we’ve seen the stock of REO properties come down, so that trend is good, but originations activity and the median value of those originations have not experienced a sustained positive trend.”The CSI is released annually and is based on a number of housing and credit factors. It is designed to provide a relative measure of local housing market conditions and their recovery potential.last_img read more

Charting a Course for High Debt-to-Income Borrowers

first_img About Author: Seth Welborn April 1, 2019 1,372 Views 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 Conservetorship Fannie Mae Freddie Mac GSE Income Minorities 2019-04-01 Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Home / Daily Dose / Charting a Course for High Debt-to-Income Borrowers Previous: Foreclosure Challenges, From Fraud to Deed Theft Next: Protecting Homeowners from Harassment According to recent data, the GSE patch, which allows higher debt-to-income (DTI) ratio mortgages to qualify for the protections provided under the qualified mortgage (QM) rule, disproportionately benefits minority and lower-income borrowers. The Urban Institute and data from Recursion Co., a financial analytics firm, states that letting the patch expire in 2021 with no change will further disadvantage these already underserved groups.The patch is currently set to expire in 2021. In a report, Laurie Goodman, VP, Housing Finance Policy at the Urban Institute notes that approximately 19 percent of GSE loans in the 2014–2018 period, or 3.3 million loans, were made possible by the patch. According to Goodman, high DTI GSE borrowers are disproportionately minority borrowers with incomes that are, on average, less than those of borrowers with lower DTIs.“This new evidence firmly establishes that the GSE patch disproportionately benefits minority borrowers and borrowers whose incomes are at the lower end for new homeowners,” Goodman said. “This finding suggests that if the patch is not extended, a replacement should be found that supports credit availability for minority borrowers.”Moving forward, the patch may be impacted by the end of GSE conservatorship, recently called for by President Donald J. Trump. In a memorandum tasking the Treasury Department and Department of Housing and Urban Development (HUD) with preparing a reform plan for Fannie Mae and Freddie Mac. In the memorandum, the President specifically called for a “comprehensive” plan for removing Fannie and Freddie from the government conservatorship under which they have been operating since September 2008, during the housing crisis.The memo states that “in the decade since the financial crisis, there has been no comprehensive reform of the housing finance system despite the need for it, leaving taxpayers exposed to future bailouts.” The memo went on to claim that “the Department of Housing and Urban Development’s (HUD) housing programs are exposed to high levels of risk and rely on outdated business processes and systems.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News, Secondary Marketcenter_img Charting a Course for High Debt-to-Income Borrowers Demand Propels Home Prices Upward 2 days ago Related Articles 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.  Print This Post Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Conservetorship Fannie Mae Freddie Mac GSE Income Minoritieslast_img read more

How Costly Is the American Dream of Homeownership?

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, News 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. Tagged with: American Dream Homeownership Homes household HOUSING mortgage PropertyClub Savings Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Achieving the American Dream of homeownership has become more expensive than ever, according to a study published by PropertyClub.The study, which analyzed real estate prices in the 50 largest cities across the country over the past 20 years as well as the income required to purchase a home in each city, indicated that cities on the West Coast had become more expensive than ever.For example, in 1999 earning $76,414 per year was enough to afford a home in San Francisco. Today, a household must earn at least $308,763 to buy a home. The study indicated that home prices in the Golden Gate City had risen 304 percent over the past two decades.However, the nation’s capital, Washington, D.C. has seen the highest jump in home prices at 412 percent over the past two decades. New York City, on the other hand, saw a 225 percent increase. The increasing number of government jobs would continue to push the prices in Washington, D.C., the study indicated.Cleveland is the only city where the average price of a single-family home is lower today than in 1999, the study revealed. The average home price in this city in 1999 was $63,600 compared with $54,900 today, a decline of 14 percent.Apart from Cleveland, the study indicated that homebuyers could also look at living in Memphis, Albuquerque, Wichita, and Columbus, all of which have seen only modest home price gains over the past 20 years. In all these cities, the average American household could afford to buy a home in just three years if they saved 30 percent of their income.On the other hand, it would take the average household almost 81 years to be able to afford a home in San Francisco if they saved 30 percent of their annual income. Similarly, it would take 62 years to save enough to buy a home in San Jose, and 43 years in Los Angeles.Click here to read the full study. 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: Radhika Ojha The Best Markets For Residential Property Investors 2 days ago Related Articles Previous: HUD Announces Disaster Assistance for Iowa, Nebraska Floods Next: Warren Buffett Talks Wells Fargocenter_img Sign up for DS News Daily  Print This Post The Best Markets For Residential Property Investors 2 days ago American Dream Homeownership Homes household HOUSING mortgage PropertyClub Savings 2019-04-08 Radhika Ojha How Costly Is the American Dream of Homeownership? Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 8, 2019 1,797 Views Home / Daily Dose / How Costly Is the American Dream of Homeownership? Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

How the GSEs Are Preventing Foreclosures

first_imgHome / Daily Dose / How the GSEs Are Preventing Foreclosures Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Fannie Mae FHFA Foreclosure Freddie Mac 2019-06-21 Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago Fannie Mae and Freddie Mac completed 38,968 foreclosure prevention actions in Q1 2019, bringing the total number of foreclosure prevention actions to 4,322,804 since September 2008 according to the latest Federal Housing Finance Agency (FHFA) Foreclosure Prevention Report.Of the over four million foreclosure prevention actions taken by the GSEs, the FHFA notes that actions, 3,629,411 have helped troubled homeowners stay in their homes, including 2,336,047 permanent loan modifications. Additionally, around 38 percent of loan modifications completed in Q1 reduced borrowers’ monthly payments by more than 20 percent.FHFA’s report also includes total numbers of home forfeiture actions. According to the report, Fannie Mae and Freddie Mac completed 1,542 short sales and deeds in lieu in the first quarter, bringing the total to 693,393 since conservatorship began.“The number of completed short sales and deeds in lieu decreased 13 percent in the first quarter compared with the fourth quarter of 2018,” the FHFA states. “These foreclosure alternatives help to reduce the severity of losses resulting from a borrower’s default and minimize the impact of foreclosures on borrowers, communities, and neighborhoods.”Delinquencies are foreclosures are at record lows, according to Black Knight. Black Knight’s First Look at May’s mortgage performance data revealed that  the national delinquency rate fell to another record low in May, at 3.36%, which is the lowest point since 2000.Black Knight’s data also reveals that May saw the lowest number of foreclosure starts in 18 years, at around 39,000, while the number of loans in active foreclosure fell to a more than 13-year low. The total non-current rate has fallen to its lowest point since early 2005, driven by improvements in overall delinquencies.Despite the record lows nationally, many southern states are still experiencing high rates of non-current loans. Mississippi leads with a non-current percentage of 9.86%, followed by Louisiana at 7.34% and Alabama at 6.37%. Mississippi, Louisiana, and Alabama also lead 90+ days delinquent loan volume.Download the FHFA’s report here. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days agocenter_img How the GSEs Are Preventing Foreclosures June 21, 2019 4,413 Views Tagged with: Fannie Mae FHFA Foreclosure Freddie Mac Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: New Digital Lending Experience Launched by Two Companies Next: Mortgage Bank Names New Bank Secretary Act Officer  Print This Post 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. in Daily Dose, Featured, Foreclosure, Government, News Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Taking the Pulse of the Mortgage Industry

first_img Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 2019-12-13 Seth Welborn Taking the Pulse of the Mortgage Industry The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, News, Print Features Previous: Investors Take Note: Residential Rental Spending Hit $4.5T Next: The Week Ahead: Economic Drivers in Housing Governmental Measures Target Expanded Access to Affordable Housing 2 days ago December 13, 2019 3,313 Views Related Articlescenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Taking the Pulse of the Mortgage Industry Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily 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. About Author: Seth Welborn 2019 was a year of change and challenges for servicers. The industry faced continued damage from natural disasters, the shifting needs of a changing mortgage customer base, and the ongoing challenges of innovating and achieving success in a low-volume environment.As we approach the end of 2019, DS News spoke to servicing industry leaders about what they learned this year, and what to expect going into 2020.What to Expect in 2020Mike Rawls, EVP of Servicing for Mr. Cooper, outlined three key factors to look at in 2020: continued pressure on costs, a focus on natural disasters, and—possibly surprising to some—a chance of rising delinquencies in the months to come, even after historically low delinquency rates nationwide.“One of the other major themes in 2019 has been the continuance of historically low delinquency rates across the nation,” said Caroline Reaves, CEO, Mortgage Contracting Services, who added that this trend “goes hand-in-hand with the strong economy and low unemployment rates we have also been seeing.”CoreLogic reported in November that the foreclosure inventory rate fell to 0.4% in June, which equals the lowest for any month since January 1999. The share of mortgages that were in any stage of delinquency was 4% in June—a decline from last year’s 4.3%.What might make delinquencies rise a long decline into historically low levels after the Great Recession? Rawls points to slowdowns in home prices across the country.In October, a Bankrate study noted that homebuyers were “sailing calm waters” with lower rates and slowing home price appreciation. Fannie Mae Chief Economist Doug Duncan observed that “at the beginning of 2019, rates started to come down, then we saw this big drop in rates. We didn’t expect such a significant drop-off—it was 30 points more than we forecasted.”“Home price appreciation has slowed across the country and we are starting to see early stage delinquencies rising from historic lows,” Rawls told DS News. “Staffing appropriately for outbound early stage collections and to assist customers in need will become more important in 2020.”Rawls also spotlighted the rising costs of servicing. DS News recently reported that Mid America Mortgage, Inc. severed ties with its subservicers in an effort to cut costs, opting instead to bring servicing in-house. This will mean utilizing new technologies to ease the transition, as Mid America noted that it had made investments to digitize its servicing division by encouraging paperless billing and electronic payments.Rawls echoes the importance of using innovation and leveraging new technology—not just to optimize costs, but also to better handle customer outreach.Rawls said, “In order to service effectively, servicers have to properly leverage their technologies—providing their customers with the ability to self-service 24/7 via multiple channels, including web, app, and IVR, and to conduct operations such as phone payments, payoff quotes, and escrow analysis without having to place a call to customer service, creating tasks for back-office personnel to execute.”Another concern for servicers? The increased threat of natural disasters. Though Rawls notes that “hurricanes did not cause as much damage as in the prior two years,” there was still significant damage from flooding and wildfires across the U.S. According to CoreLogic, 20 of the country’s metropolitan areas posted at least a small annual increase in overall delinquency, notably in areas impacted by flooding this spring in Kentucky, Ohio, Illinois and Indiana. CoreLogic data also revealed that there are 775,654 residential properties at extreme risk of wildfire damage in the 13 Western states, with a reconstruction cost value (RCV) of just over $221 billion in 2019.“With denser housing populations in areas prone to floods and other disasters, the need for servicers to be present for their customers in time of need is higher than ever,” Rawls continued. “The ability for impacted customers to route directly to empowered and educated customer service agents will differentiate servicers in their customer’s greatest time of need.”Disaster on the RadarThe U.S. has  experienced 36 major disasters so far in 2019, according to data from Fannie Mae, and for those homes in disaster-areas, preparation begins at the building process. Mike Hernandez, VP for Housing Access and Disaster Response & Rebuild at Fannie Mae, said in a Fannie Mae Q&A that “preparedness should include far more than financial steps and logistics.”A study by the National Bureau of Economic Research found that mortgages written on homes in these “exposed locations” are being shed by banks and absorbed by Fannie Mae and Freddie Mac.“This implies that homeowners and investors have been making location decisions without properly pricing the cost of potential peril, and that the government has been enabling the oversight,” the Harvard Business Review reported.Although this year’s hurricane impact was less than in some other recent years, wildfires stepped to the forefront as far as natural disaster risk in 2019. In California alone, ClosingCorp estimated that there is more than $7 billion in loan value and $60 million in service fees and transfer tax revenue at risk due to recent wildfires.Redfin previously reported that Los Angeles, Orange, and Santa Clara Counties were at risk of losing more than $2 trillion worth of housing as a result of the fires. Los Angeles County has 1.49 million households valued at $1.2 trillion, with an estimated median home value of $625,000. Orange County has a total housing value of $502.6 billion, with a median home value of $709,800.Going into 2020, Rawls suggests servicers need to “be proactive” with their customer outreach ahead of disasters. Technology again is key to this approach, as it can give customers 24/7 access to the information they need, when they need it.“Having smart systems that allow customers access 24/7 to update their status, report hardships, and provide emergency contact information helps servicers to quickly assist customers most impacted by disasters,” Rawls noted. “Additionally, the ability to harness satellite and drone technology to provide images can assist servicers in identifying the highest risk properties to prioritize outreach to those customers.”Molding the FutureLooking beyond 2020, servicers must learn how to adapt to the needs of younger generations, such as Gen Z. Like Millennials before them, Gen Z is increasingly reliant on technology and interconnectivity, but this doesn’t only mean through an app.“Millennials and Gen Z are more reliant on self-service and anytime, anywhere convenience, but when it comes to the largest purchase ever, we still believe that having a trusted advisor will play a key role in addressing their needs,” Rawls said.“We’re confident the combination of digital educational tools and empowered and educated mortgage professionals will be the winning combination for the next generation of homeowners,” he continued.Servicers need to be able to adapt to new technology, according to Armando Falcon, Founder and CEO of Falcon Capital Advisors and former head of the Office of Federal Housing Enterprise Oversight, the precursor to the FHFA. Even in a low-default environment, it’ll take advancements in tech to stay strong as these new generations enter the housing market.“It requires some resources, some capital, but if consumer preferences move in that direction and the originators also are moving in that direction, servicers have to follow along,” Falcon said. “They haven’t had to make any changes yet because there’s been no demand for it, but once that demand does exist, the servicers will be fast followers because they want to maintain a servicing portfolio. They’ve got to keep a growing customer base.”Part of the appeal of new technology is increased ease and accessibility, not just for the customer but for the servicer as well. Automation, according to Jane Mason, CEO of Clarifire, can cut down on busy work. Artificial intelligence, she said, can automatically complete the “review of documents and eliminate the manual labor,” getting customers the info they need, when they need it.Automation can also help identify risks in what Gagan Sharma, President and CEO of BSI Financial, calls a “needle in a haystack,” as it is normally a small percentage of loans that are at risk.“Most servicers are running at a level of quality where 98%, 99% of the loans are working just fine,” Sharma told DS News. “It is the last 1% of that causes issues. We have spent a lot of time, effort, and money on identifying those high-risk assets and then putting corrective measures in place.”The Economic Question MarkThe Federal Reserve slashed interest rates three times in 2019, dropping its benchmark lending rate in October by another quarter of a point.Doug Duncan said the Fed cited “implications of global developments” as rationale for the cut.Although the Fed has lowered rates to spur economic growth, Jarred Kessler, CEO of EasyKnock, said that plans doesn’t always work out.”Lowering rates doesn’t always have the economic impact we think, or expect it to have because it disrupts the natural economic ecosystem,” Kessler said. “Just look at Japan—it can drive housing growth and a push in the stock market, but other facets of the economy are bound to lose. In the longer term this along with inflation can have a very negative impact.”Kurt Johnson, Chief Credit Officer for Mr. Cooper, cited interest rate increases as a major lesson learned in 2019. The Fed was expected to continue raising interest rates at the end of 2018, but, as Johnson said, “Interest rates rarely follow their predicted path.”“As a mortgage originator and servicer, creating processes that scale up and down without the need to ramp up or down; and developing tools to help loan officers and customer service agents address customers’ needs is critical,” he continued.Though the possibility of a future recession remained a hot topic in 2019, Johnson doesn’t expect this to come to fruition in 2020, as several economic indicators point to growth. However, as his colleague Rawls noted, delinquencies are expected to increase in the coming year.“The average consumer is healthy and home equity has contributed greatly to that,” Johnson said. “Leading up to the great recession, the value of the U.S. housing market increased from 2001 to 2006 by almost 60%, from just over $15 trillion to just over $25 trillion. However, at the same time, mortgage debt almost doubled, from just over $5 trillion to just over $10 trillion. After bottoming out in 2011, the value of the housing market has again risen dramatically, from around $19 trillion to almost $31 trillion. However, mortgage debt has been relatively stable, rising from just over $10 trillion to $11 trillion today, creating household equity that is 30% higher than its past peak in 2006.”A consumer-led recession is unlikely, Johnson noted, as incomes have risen steadily through 2019, while unemployment has stayed historically low. This was offset, he noted, by slow home price appreciation.“This should increase delinquency rates, particularly with low-down-payment, first-time homebuyers in FHA products—an historically more labor-intensive product to service,” Johnson said. “Having experience dealing with distressed customers and having robust loss mitigation technology, allowing a servicer to scale up quickly for rising delinquencies, will be a differentiator in the coming 12 to 24 months.”Though his outlook does not include a recession in the near future, Johnson notes that now is the time to prepare. For Johnson, this means utilizing technology during times of health and stability—so you are better prepared when significant change comes down the pike.“The industry was caught flat-footed in 2008 when increases in delinquencies outpaced staffing adds,” Johnson said. “Effectively leveraging technology can help solve some of those issues by quickly scaling and improving the customer experience.” Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Fannie Mae Economist: When Will Economy Bounce Back?

first_imgHome / Daily Dose / Fannie Mae Economist: When Will Economy Bounce Back? The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Tagged with: Economy August 18, 2020 1,516 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News Share Save Previous: White House Ripple Effects on Housing Next: California Moving Forward With State-Level CFPB According to the latest commentary from the Fannie Mae Economic and Strategic Research Group, America’s economy is surprisingly poised to bounce back in the coming quarter.Although the U.S. economy experienced a setback in the second quarter, contracting by 32.9% (annualized), all seems not to be lost according to experts.Even though this second quarter showing marked the largest decline since the demobilization efforts after World War II, experts point to the healthy rate of recovery in the economy that was seen this past May and June, a momentum which they say is perfectly setting up this coming third quarter for an equally healthy rebound.Specifically, experts predict that the third quarter GDP growth will be roughly 27.2% (annualized). Further support of this positive outlook for the future of the economy is now-declining coronavirus case rate, as well as current support being offered by fiscal and monetary policy in the U.S. The experts have even pointed to the fact that many households have increased their savings while reining in spending during these uncertain times, thus creating an environment for future consumer spending throughout the year as people gain more confidence with the current state of affairs.Even though there are decided risks that could complicate this positive outlook, such as a surge in COVID-19 cases and further lockdowns, the experts from the ESR group still are staying optimistic.Doug Duncan, Fannie Mae SVP and Chief Economist, further elaborated on the group’s economic forecast, particularly in how the pandemic will affect it: “The economy’s climb back from the sudden and severe setback of the second quarter is fully underway, but we believe the future pace will be driven largely by the path of the novel coronavirus and how the public responds to coronavirus-related information.”Duncan added: “Consumers have savings to draw on, but some are holding that savings in reserve until the economy and labor markets improve. Others are spending on a discretionary basis as they await evidence that the virus has receded sustainably. Our base scenario assumes that Congress will agree upon additional fiscal stimulus in support of consumers and businesses, and that the economy will only shrink 3.1 percent in 2020 relative to 2019, measured on a fourth-quarter-over-fourth-quarter basis.”Further details on what to expect were provided by Duncan: “We believe housing will continue to be a sector with relative strength amid the larger downturn, as long-running supply constraints exacerbate demographic and interest rate demand-side factors that are supporting home price growth. The recently observed increase in purchase demand is largely due to pent-up demand as buyers are acting now after delaying purchases in the spring. We are, however, seeing some early signs of shifting buyer preference to locate to lower density areas, potentially driving some additional purchase activity. Here, our baseline forecast sees purchase volumes of $1.3 trillion in 2020.” Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad. center_img Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Economy 2020-08-18 Christina Hughes Babb  Print This Post Fannie Mae Economist: When Will Economy Bounce Back? Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Andy Beth Miller Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Gaeltacht Bill passed despite opposition Dail walkout

first_img Facebook By News Highland – July 19, 2012 Twitter News WhatsApp NPHET ‘positive’ on easing restrictions – Donnelly Three factors driving Donegal housing market – Robinson Opposition TDs who earlier walked out of the Dáil during a row with the Government over the Gaelteacht Bill, say they wanted to make it clear that their opinions weren’t heard.They object to the Bill, which changes the funding structure for employment schemes in Gaelteacht areas, and gives the Minister the power to appoint board members to Údaras na Gaelteachta.Sinn Féin and Fianna Fáil walked out of the Dáil this morning, after the Government refused to discuss any of their amendments to the Bill.Fianna Fáil TD for Galway West, Eamon Ó Cuív, told Galway Bay FM that they didn’t want to contribute to the illusion that there had been a full debate on the Bill:[podcast]http://www.highlandradio.com/wp-content/uploads/2012/07/15ocuiBILL.mp3[/podcast] WhatsApp Facebook Google+ Help sought in search for missing 27 year old in Letterkenny center_img Gaeltacht Bill passed despite opposition Dail walkout Calls for maternity restrictions to be lifted at LUH Pinterest Twitter 448 new cases of Covid 19 reported today RELATED ARTICLESMORE FROM AUTHOR Pinterest Google+ Previous articleSurvey suggests Donegal will get a tourism boost from the London OlymicsNext articleDerry police probe arson attacks on two vans News Highland Guidelines for reopening of hospitality sector publishedlast_img read more

LGH confirms Winter Vomiting Bug outbreak as restrictions stay in place

first_img Guidelines for reopening of hospitality sector published LGH confirms Winter Vomiting Bug outbreak as restrictions stay in place Google+ NPHET ‘positive’ on easing restrictions – Donnelly News Twitter Help sought in search for missing 27 year old in Letterkenny WhatsApp By News Highland – December 11, 2012 Pinterest RELATED ARTICLESMORE FROM AUTHOR Google+center_img Pinterest WhatsApp Twitter Facebook Previous articleDonegal Deputy McConalogue hits out at cuts to small farmersNext article7 in Donegal make settlements with Revenue worth 800 thousand euro News Highland The HSE has confirmed an outbreak of the Winter Vomiting Bug.Visiting restrictions were imposed on Surgical 1 and Medical 3 yesterday afternoon after a number of patients began showing symptoms of vomiting and diarrheoa. At the time, the hospital confirmed to Highland Radio News that the infection control team is meeting regularly, but a norovirus outbreak was not being declared.However, the HSE has now issued confirmation. Visitors are being kept out of the affected wards except by prior arrangements, and caution is being advised.Public Health Consultant Dr Anthony Breslin has been discussing the situatiion on the Shaun Doherty Show……… Three factors driving Donegal housing market – Robinson 448 new cases of Covid 19 reported today Calls for maternity restrictions to be lifted at LUH Facebooklast_img read more

Harvey wants radical overhaul of rates legislation as chamber seeks 25% cut

first_img Calls for maternity restrictions to be lifted at LUH Pinterest RELATED ARTICLESMORE FROM AUTHOR Previous articleInvestigation into Derry ladder deathNext articleDerry doctor wins “The Apprentice” News Highland Harvey wants radical overhaul of rates legislation as chamber seeks 25% cut WhatsApp Facebook By News Highland – July 18, 2013 448 new cases of Covid 19 reported today Facebook Google+ Cllr HarveyA County Councillor has backed calls from the Twin Town’s Chamber of Commerce for a significant business rates cut but says in reality it can’t come from Donegal County Council.The Chamber of Commerce wants a 25% cut in commercial rated to help struggling businesses but Councillor Cora Harvey says local services would lose investment if it came from the local authority.Councillor Harvey says the current rates system is archaic, and requires legislative change at a national level………………[podcast]http://www.highlandradio.com/wp-content/uploads/2013/07/corahratescut.mp3[/podcast]center_img News WhatsApp Pinterest Guidelines for reopening of hospitality sector published NPHET ‘positive’ on easing restrictions – Donnelly Three factors driving Donegal housing market – Robinson Twitter Google+ Twitter Help sought in search for missing 27 year old in Letterkenny last_img read more