Poll: Majority of Lenders Reluctant to Lower Standards to Expand Credit Access

first_img CFPB Collingwood Group Consumer Financial Protection Bureau Credit Availability Financial Regulations 2014-11-17 Tory Barringer The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Poll: Majority of Lenders Reluctant to Lower Standards to Expand Credit Access Demand Propels Home Prices Upward 2 days ago November 17, 2014 1,030 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Poll: Majority of Lenders Reluctant to Lower Standards to Expand Credit Access Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: East Point Systems Introduces New Business Intelligence Platform Next: Unemployment Rate Low, But Number of Americans ‘Not in Labor Force’ Near All-Time High As federal housing agencies push mortgage firms to lend to more consumers, a recent survey indicates most lenders feel the regulatory risk is still too great for them to lower their standards.In a poll conducted by the Collingwood Group throughout October, 71 percent of mortgage lenders said the odds of them lowering credit score requirements for borrowers are between “somewhat” and “extremely unlikely,” with several saying they feel their standards are already relatively low and that they generally follow the credit parameters set by agency investors.As homeownership numbers sit at their lowest level in nearly two decades, regulators have recently announced plans to boost mortgage availability by allowing the GSEs to purchase loans with lower down payments and by clarifying their repurchase framework.Despite those steps and the strain some originators are feeling as the mortgage market shrinks, one anonymous respondent commented that “[i]t isn’t worth the business risk” to relax their lending criteria.”The reluctant to broaden the credit parameters to reach additional borrowers is a clear indication that lenders are passing up additional volume to avoid regulatory enforcement actions,” the Collingwood Group said in a report detailing the survey findings.The findings echo recent remarks from Bank of America’s CEO, Brian Moynihan, who said the bank has little to no incentive “to try to create more mortgage availability where the customers are susceptible to default.”Out of all the regulatory worries contributing to lenders’ anxiety, the Consumer Financial Protection Bureau’s (CFPB) mortgage rules are the biggest concern, the survey shows, with 74 percent of respondents pointing to the bureau as the biggest source of concern. Also on the list were Fannie Mae and Freddie Mac, Federal Housing Administration program requirements, and state regulations, with each earning single-digit shares of responses.In their views of CFPB, many originators questioned whether the bureau’s rules are actually in American borrowers’ best interests, and some said they feel the agency is too focused on finding faults and fining companies rather than offering guidance.”CFPB is rule making through enforcement,” said one unnamed lender. “No clear guidance on certain issues. They won’t put anything in writing when you ask a question. No recourse to their fines and penalties. No real due process.”Other respondents indicated that while they’re not concerned about any one agency, it’s the volume and complexity of new rules that are making lending more burdensome. The vast majority also said that the enforcement of the new regulations is “subjective” and “unfair.”In response to the new regulatory environment, 82 percent of respondents reported their companies are taking expansionary actions, including increasing compliance staff, enhancing risk controls, and investing in compliance technologies. Another 9 percent said they are taking the opposite strategy by reducing third-party originations and tightening credit standards.At least one lender remarked that his or her firm has left the residential mortgage business altogether, the Collingwood Group reported. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Related Articles 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 About Author: Tory Barringer Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: CFPB Collingwood Group Consumer Financial Protection Bureau Credit Availability Financial Regulations Subscribe Sign up for DS News Daily Share Save 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.  Print This Postlast_img read more

Five Star President: ‘Embedded Risks’ May Be Hindering Mortgage Market Recovery

first_img Tagged with: Five Star Institute HAMP Home Affordable Modification Program Loan Modifications Mortgage Rates REO The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Tory Barringer in Daily Dose, Featured, News, REO Demand Propels Home Prices Upward 2 days ago Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington’s student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News’ sister publication, MReport, which focuses on mortgage banking news. Home / Daily Dose / Five Star President: ‘Embedded Risks’ May Be Hindering Mortgage Market Recovery  Print This Postcenter_img Previous: Fannie Mae Expects Modest Economic Growth in 2015 Next: DS News Webcast: Friday 11/21/2014 November 20, 2014 775 Views Five Star President: ‘Embedded Risks’ May Be Hindering Mortgage Market Recovery Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Five Star Institute HAMP Home Affordable Modification Program Loan Modifications Mortgage Rates REO 2014-11-20 Tory Barringer Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago While the housing market has made measurable strides toward recovery in the last two years, the coming year could bring the start of another downturn, one expert says.Delivering comments to a group of REO brokers and agents, Ed Delgado, president and CEO of the Five Star Institute, offered his take on how the stage is set for the mortgage sector in 2015.”There are several embedded risks in the mortgage market that pose future risk of performance that have yet to be expressed,” Delgado said. “In effect, the market may not be recovering at the rate that we think it is.”Chief among Delgado’s concerns is the government’s Home Affordable Modification Program (HAMP), which attracted nearly 900,000 struggling borrowers in the years 2009 to 2013.While modifications into super-low interest rates helped those hundreds of thousands of Americans stay in their homes, those “permanent” reductions came with a five-year expiration date, and the first waves of HAMP borrowers are now set to see their adjustable rates climb as high as 5 percent.Though that is still a historically low interest rate, it means a monthly payment increase of hundreds of dollars over the next few years—at a time when their financial situation likely can’t take the added cost.To make matters worse, another modification or refinance is unlikely to help, Delgado says.”Modifying an interest rate of 4.25 percent down to 3 percent isn’t going to provide sufficient payment relief to homeowners facing a financial hardship sufficient to threaten mortgage payment performance,” he said.What’s more, he estimates that out of every 10 recent-vintage loans that pass into 90-day delinquency or more, eight will be resistant to loss mitigation efforts owing to the current low interest rate environment.”Despite improvements related to credit quality and tighter rules for underwriting, the reality is that low interest rate mortgages created in recent vintage production will be less responsive to loss mitigation options in the future,” Delgado said.Editor’s note: The Five Star Institute is the parent company of DS News and DSNews.com. Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Judge Orders State to Pay Castle Law’s Legal Tab

first_imgThe exact amount the state will need to pay is yet to be determined—though it’s likely to reach into the millions. The total tally will be discussed at a hearing early next year.Click here to view the full order. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Judge Orders State to Pay Castle Law’s Legal Tab About Author: Aly J. Yale Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Attorney General castle law Housing Crisis in Daily Dose, Featured, Government, News Share Save November 26, 2017 2,608 Views  Print This Post Aly J. Yale is a longtime writer and editor from Texas. Her resume boasts positions with The Dallas Morning News, NBC, PBS, and various other regional and national publications. 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. Previous: The Week Ahead: A Full Agenda for the Senate Banking Committee Next: Where States and Metros Landed in Terms of Home Price Appreciation Data Provider Black Knight to Acquire Top of Mind 2 days ago Castle Law Group has once again been vindicated in a court of law. This time, a Denver district judge has ordered the Colorado Attorney General’s office pay the group’s legal fees—fees that stem from Castle’s landmark win against the state earlier this year.According to a District Court order handed down last week, the State of Colorado will need to pay a portion of Castle Law Group’s attorney fees and costs associated with State of Colorado v. The Castle Law Group.The case, in which Attorney General Cynthia Coffman claimed the firm defrauded thousands of customers and homeowners during the housing crisis, spanned five years. District Judge Morris Hoffman ruled in Castle’s favor in April.In his order handed down last week, Hoffman said the AG was “wrong to bring and pursue most of this case.”“The evidence, or lack of evidence, at trial was nothing short of breathtaking, especially compared to the investigative build-up and the serious and pervasive allegations in the complaint, Hoffman wrote. “The case Plaintiffs put on wasn’t even a sick relative of the robust allegations they made. They didn’t call a single witness from any of the allegedly deceived industries. I recognize that reliance was not an element of Plaintiffs’ CCPA/CFDCPA claims. But how could they not call a single buyer when their central claim was that the price that buyer paid was deceptively above market?”The order spans 20 pages and delves into much of the AG’s failures in handling the case. Despite these misgivings, Hoffman says he doesn’t think Coffman or other AG employees acted out of malice.“Despite Plaintiffs’ exhaustive investigative efforts, despite the feeble trial they put on, and despite the minimal results they achieved, I do not believe that Plaintiffs acted in bad faith,” Hoffman wrote in his order. “These were gross errors of judgment, not vindictiveness. I don’t doubt that every one of the assistant attorneys general who participated in this case, and their governmental client-representatives, subjectively thought this was a righteous case; they probably still do.”Larry Pozner, Partner at Reilly Pozner LLP and lead defense attorney in the case spoke to DS News exclusively about the case.This case represents an unwarranted intrusion into the practice of law. It is up to law firms to serve their clients honestly and ethically but as the court pointed out there wasn’t a single institution that appeared in trial and said they were taken advantage of. Despite this, the state wiped out a prestigious and extraordinary law firm that employed 200 people. You can give back the all attorney’s fees in the world but you can’t replace the prestige and reputation of the law firm or its existence. I think sophisticated clients would be bothered by the complaint that was filed but as the judge pointed out the it’s easy to type the complaint it’s another thing to have the facts to back to it up. It was tragic that a tax supported law enforcement agency proceeded on five separate claims with no appropriate evidence, it was groundless and frivolous litigation. The industry ought to pay attention to the consent decrees against other law firms. I think the AG consent decrees with other law firms improperly inhibits their ability  to provide the quality of vendor services that sophisticated clients deserve and prefer.It took the Castles to stand up and say we are not going to put up with this, we are going to fight back and tell our story. In the end it was the Attorney General who should be embarrassed about their conduct. Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Judge Orders State to Pay Castle Law’s Legal Tab Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Attorney General castle law Housing Crisis 2017-11-26 Aly J. Yale Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

Can Online Lending Decrease Risk?

first_img Servicers Navigate the Post-Pandemic World 2 days ago Previous: Mortgage Delinquencies Dip, Foreclosure Starts Spike Next: Home Prices Decelerating in Luxury Markets Can Online Lending Decrease Risk? in Daily Dose, Featured, News, Technology Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Can Online Lending Decrease Risk? Applications Banks Borrowers Conventional Loans FHA Loans FinTech Lenders mortgage Mortgage Applications New York Fed Refinance Volumes 2018-02-23 Radhika Ojha Tagged with: Applications Banks Borrowers Conventional Loans FHA Loans FinTech Lenders mortgage Mortgage Applications New York Fed Refinance Volumes Technological innovation is changing the way the mortgage industry works, and the model followed by lenders who have embraced technology such as end-to-end online mortgage application and approval processes have made lending a less risky prospect, according to a report on Fintech lending by Federal Reserve Bank of New York.Titled, “The Role of Technology in Mortgage Lending” the report uses market-wide loan-level data on U.S. mortgage applications and originations and defines fintech lenders as those who offer a mortgage application processes online. These lenders have complete end-to-end online mortgage application and approval process that is supported by centralized underwriting operations, rather than the traditional network of local brokers or physical branches.According to the report, fintech lenders process mortgage applications about 20 percent faster than other lenders, while keeping the default rates low. Fintech lenders have increased their market share in U.S. mortgage lending from 2 percent in 2010 to 8 percent in 2016 with higher growth in refinancing and mortgages issued by the Federal Housing Administration (FHA), which primarily serves lower-income borrowers.Fintech lenders process mortgages faster than traditional lenders, measured by total days from the submission of a mortgage application until the closing, the report indicated. It used loan-level data of U.S. mortgages from 2010 to 2016 and found that fintech lenders reduced processing time by about 10 days or 20 percent of the average processing time. The effect for refinance mortgages was more with processing times at 14.6 days compared to purchase loans with processing times reduced to 9.2 days.However, faster processing times do not result in riskier loans, the report found, while measuring loan risk using default rates on FHA mortgages. Default rates on fintech mortgages for this segment were about 25 percent lower than those for traditional lenders, indicating that fintech technologies might be helping to attract and screen for less risky borrowers.The report used changes in nationwide application volume to determine the correlation of processing times for fintech lending and traditional lending if the size of applications increased. It found that while doubling the application volume raised the loan processing time by 13.5 days for conventional lenders; it took fintech lenders only 7.5 more days to process these volumes.It also found that fintech lenders mainly focused on mortgages refinances and studied the relationship between fintech lender market share and refinancing across the U.S. and found that U.S. counties with a more significant fintech lender presence were more likely to refinance.With fintech lending here to stay, don’t miss attending the Five Star Fintech Summit, a conference that will cover all aspects of Fintech and its future applications. The two-day conference being held in Nashville, Tennessee on March 21 and 22 features speakers in the technology, operations, and mortgage industry including Tracy Stephan, Director, Enterprise Innovation Team at Fannie Mae. Transparency, accessibility, and ease of use will be highlighted in this two-day meeting along with insights on the latest approaches to bringing financial technology into the forefront of consumers’ experience.To register for the conference, click here. Related Articles 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 agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily  Print This Post Demand Propels Home Prices Upward 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago February 23, 2018 2,248 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Examining Housing Inequality

first_img Related Articles Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Journal, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Examining Housing Inequality Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: David Wharton April 19, 2018 1,649 Views Tagged with: amenities Banks Diversity Fair Housing Fair Housing Act Financial services National Fair Housing Alliance Trulia Share Save Demand Propels Home Prices Upward 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago It has been five decades since President Lyndon B. Johnson signed the Fair Housing Act into law, one week after the assassination of Martin Luther King, Jr. In honor of the anniversary, Trulia partnered with the National Fair Housing Alliance (NFHA) to examine the state of housing in 2018 and spotlight areas where inequalities still persist in the housing landscape, even all these years later.Trulia and the NFHA targeted four cities for the study—Atlanta, Detroit, Houston, and Oakland, California—comparing U.S. Census Bureau demographic data against amenity data gathered from Yelp. For the purposes of this study, Trulia considered amenities including financial services, health services, healthy food, and fitness and outdoor activities.Numerous inequalities between majority white and majority nonwhite census tracts stood out (a majority nonwhite area defined as one in which “more than 50 percent of the population is made up of any combination of people of color, including Hispanics”). Trulia found that majority-nonwhite census areas across all four metros had an average of 35.1 percent fewer traditional banking establishments than majority-white areas. On the other hand, majority non-white areas in all four metros featured twice as many alternative banking establishments. “Unlike mainstream financial services, alternative ones charge much higher fees, take deposits, and offer loans that do not help build credit histories,” reads the report. “As a result, these institutions are seen as providing costlier credit.”According to Trulia, the problem was worst in Houston, of the four metros examined, with majority-white areas having 5.25 times more traditional financial services outlets than majority-black areas and nearly three times that of majority-Hispanic areas.Trulia also found that majority non-white areas in all four cities had 38.4 percent fewer healthcare establishments than majority white areas, with the problem being especially pronounced in Houston and Oakland.Majority non-white areas in all four metros also showed 33.9 percent fewer healthy lifestyle options such as parks, playgrounds, or recreation centers.“The location of these amenities offer a first glimpse into the types of services and options are most readily available to which communities and suggests that the unevenness of housing opportunities for certain racial and ethnic groups is intimately related to the availability of quality services that help communities thrive,” states the report.You can read the full report, complete with interactive maps, by clicking here.  Print This Post amenities Banks Diversity Fair Housing Fair Housing Act Financial services National Fair Housing Alliance Trulia 2018-04-19 David Wharton Servicers Navigate the Post-Pandemic World 2 days ago Examining Housing Inequality Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: For More Affordable Homes, Move to the Middle Next: Debt and Regret Among Some Homebuyerslast_img read more

Why Senior Homeowners Stand to Gain

first_img Share Save in Daily Dose, Featured, Investment, News Home / Daily Dose / Why Senior Homeowners Stand to Gain The Best Markets For Residential Property Investors 2 days ago December 18, 2018 1,301 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days agocenter_img Home Equity Homeowners Housing Wealth NRMLA Reverse Mortgage RMMI 2018-12-18 Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days ago Housing wealth for senior citizens is on the rise. According to the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI), released by the National Reverse Mortgage Lenders Association (NRMLA), homeowners in the age-group of 62 years and older saw their housing wealth grow to $6.97 trillion in Q3 of 2018. This marks a quarter over quarter increase of 1.4 percent or $97 billion. However, the growth has slowed down slightly compared to last year, when senior wealth saw a quarter over quarter increase of 1.96 percent.The rising real-estate wealth has also resulted in an increase in reverse mortgages, NRMLA data indicated. The RMMI rose in Q3 2018 to 251.57, another all-time high since the index was first published in 2000. During the same period last year, the RMMI had risen to 233.12.“At a time when we’re seeing stock market volatility and the potential for a mild recession in the near future, it’s the perfect time for families to gather and take stock of their retirement resources and make necessary adjustments to ensure continued financial security,” said Peter Bell, President and CEO of NRMLA. “Housing wealth should be considered with other financial assets.”The report indicated that the increase in senior homeowner’s wealth was mainly driven by an estimated 1.3 percent or $115 billion increase in their home values. The rising wealth also meant that senior-held mortgage debt rose 1.1 percent during this period.Reverse mortgages are available to homeowners who are 62 years or older with significant home equity. Under a reverse mortgage funds are advanced to the borrower and interest accrues, but the outstanding balance is not due until the last borrower leaves the home, sells it, or passes away. According to NRMLA data, approximately 1.1 million households have utilized an FHA -insured reverse mortgage to help meet their financial needs.Even as housing wealth increases, a recent Federal Reserve survey revealed that 35 percent of households in the 64 to 74 years age group had a mortgage. Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Expansion Plans Next: The State of Remodels Related Articles About Author: Radhika Ojha Why Senior Homeowners Stand to Gain Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Tagged with: Home Equity Homeowners Housing Wealth NRMLA Reverse Mortgage RMMIlast_img read more

Fannie Mae Survey: Big Banks vs. Big Tech

first_img Banks Big Tech Digital Mortgages Fannie Mae Steve Deggendorf 2019-02-05 Donna Joseph in Daily Dose, Featured, Market Studies, News, Servicing Previous: Addressing the State of the Union Next: Texas Officials: Get Moving on Harvey Relief Money Related Articles February 5, 2019 2,687 Views Share Save Fannie Mae Survey: Big Banks vs. Big Tech The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Fannie Mae Survey: Big Banks vs. Big Tech About Author: Donna Joseph Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Tagged with: Banks Big Tech Digital Mortgages Fannie Mae Steve Deggendorf Subscribe The Best Markets For Residential Property Investors 2 days ago Online services offered by banks are appreciated by consumers, however, big tech competitors loom, stated a new Fannie Mae survey that looked into the American perspective on banking experiences, and the shifting patterns in consumer digital experiences. According to respondents of the Q3 2018 National Housing Survey, while 43 percent of Americans say they are “very likely” to recommend their bank, 24 percent said they tend to stay with them out of convenience and trust. Some choose to stay on account of their bank’s speed, rates, or online interface.Sixty-nine percent of consumers reported overall satisfaction with their primary bank’s online interface as they are easy. Several respondents stated that they prefer performing simple tasks online—such as depositing money and paying bills—and are less comfortable performing more complex tasks online, including applying for a mortgage. Sixty-eight percent of young Americans do online banking, and approximately one-third of those surveyed use Big Tech payment services for mobile payments.The survey’s findings come at a time when traditional banks and financial institutions face increasing competition from start-ups and established Big Tech companies that have started rolling out financial services. These companies, however, do not inspire much trust among consumers, the survey noted. However, 20 percent of Americans, when thinking of their favorite technology companies—Google, Amazon, Apple, and Facebook— are more likely to trust that particular Big Tech company to handle their financial activities, including mortgages.“These new entrants are looking to offer financial services and are often credited with offering dazzling consumer digital experiences significantly better than those of traditional banks. Given the digital and customer experience prowess and resources of Big Tech firms, they may be especially well-situated to compete against traditional financial institutions,” said Steve Deggendorf, Director of Market Insights Research at Fannie Mae.The survey also pointed out most banks do not currently provide the experience that fulfills consumers’ financial needs on the digital front compared to the Big Tech giants. Fannie Mae’s prior research also shows that a majority of recent homebuyers have some interest in a fully digital mortgage. The survey findings also indicate that now is the time for banks “to step up their digital game and, more specifically, to consider how to best digitize more complex financial tasks before Big Tech does.”Read the full report here. Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post 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] Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agolast_img read more

How Investors Are Preparing for Natural Disasters

first_img Tagged with: Disaster hurricanes Investing Demand Propels Home Prices Upward 2 days ago June 24, 2019 1,741 Views The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Share 1Save Damage to residential and commercial real estate caused by natural disasters exceeded $300 million in 2017, and in response, many real estate investors are making the switch to “sustainable and resilient design and construction.” In a post on Forbes, Daniel Neiditch, President of River 2 River Realty discussed what investors and builders are doing to protect their assets from natural disasters, such as hurricanes.According to Neiditch, many investors are incorporating climate-mitigation strategies into their properties, including seawalls, increasing elevation and adding supplementary cooling systems into their existing properties, “reducing the risk of loss and major business interruptions.”Neiditch notes that the physical building adaptations to mitigate climate risk are numerous, and “hardening” assets is key to protect against damage from natural disasters.“Doing so reduces this risk, improving asset efficiency and the tenant’s comfort by creating energy efficient options and other mitigation measures,” he says.“Investments in climate change reduction are becoming more commonplace, but often need to have additional purposes to justify the expense — like reduced operational costs or improved tenant experience — for insurers to cover damages,” Neidtech adds.Increased hurricane activity is expected throughout the rest of 2019, according to Colorado State University’s hurricane forecast. The forecast pegs the probability of at least one major hurricane to make landfall along the continental U.S. coastline at 54%, slightly higher than the historical average of 52%.According to the report, six of the 14 named storms were likely to be hurricanes with two major systems that would carry winds of 11 miles per hour.Category 3, 4, or 5 hurricanes can cause much damage to life and property. In 2017, Hurricanes Harvey, Maria, and Irma together caused damage worth $265 billion according to data from the National Hurricane Center cited by Bloomberg, making it the costliest hurricane season in recent times.The Five Star Institute will host its Disaster Preparedness Symposium on July 31 in New Orleans, Louisiana. Natural disasters impact investors, service providers, mortgage servicers, government agencies, legal professionals, lenders, property preservation companies, and—most importantly—homeowners. The 2019 Five Star Disaster Preparedness Symposium will include critical conversations on the response, reaction, and assistance, to ensure the industry is ready to lend the proper support the next time a natural disaster strikes.  Print This Post The Best Markets For Residential Property Investors 2 days ago Previous: Quicken Loans Mortgage Services Appoints New EVP Next: Bifurcated Appraisals: Insights Into an Evolving Industry 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. center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago How Investors Are Preparing for Natural Disasters Home / Daily Dose / How Investors Are Preparing for Natural Disasters Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago Disaster hurricanes Investing 2019-06-24 Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Investment, Loss Mitigation, Newslast_img read more

Detroit Housing’s Ups and Downs

first_img Demand Propels Home Prices Upward 2 days ago  Print This Post Detroit Housing’s Ups and Downs Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Share Save Tagged with: Affordability Crisis Foreclosure HOUSING Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Detroit is facing an increase in demand for affordable housing as the city continues to bounce back from the 2008 crash. Despite holding nearly 81,000 off-market vacant units and a net supply of nearly 25,000 owned units expected by 2045, tight inventory of homes and the lower supply has pushed up prices, Hour Detroit reports.“Detroit was hit so hard by the economic crisis that it needs more developers and people willing to rehab homes than currently available,” Chase Cantrell, Executive Director of Building Community Value told Hour Detroit. “Fixer-uppers abound throughout the city but many don’t want to go through that process. First-time home buyers are not signing up to be developers.”According to the Michigan League for Public Policy, Detroit remains the largest poor city in America, with a median income of $27,838. Homeownership rates in African-American communities from 2000 to 2016 dropped from 51% to 40%; African-Americans make up 80% of Detroit’s population. According to the report, whites make up about 10% of Detroit’s population, but received over half of the mortgages issued in 2017.Additionally, Detroit is one of the leading cities in the nation in reverse mortgage foreclosures, according to reporting from Detroit Free Press. USA Today analysis estimates there has been around 1,884 reverse mortgage foreclosures in Detroit between 2013 and 2017, the highest number in the country.Reverse mortgage foreclosures are not the only foreclosure issues hitting Detroit, but measures are being taken to prevent these foreclosures. According to a recent study from Quicken Loans, property tax foreclosures in Detroit are at a 14-year low. In 2018, 2,920 properties faced property tax foreclosure auction, down from 6,052 in 2017, and far below the peak of 15,000 in 2015.On a more positive note, Jeanette Schneider, VP of Management Services for RE/MAX of Southeastern Michigan states that “Detroit home values are seeing dramatic increases over last year.”“During the first half of the year, the median price for a home in the city of Detroit increased more than 20%,” Schneider said. “Driving the increase in home values is the demand for Detroit housing.”“While some neighborhoods have seen skyrocketing prices, there are still affordable communities that offer the brick homes that people desire at affordable prices,” she added. The Best Markets For Residential Property Investors 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Detroit Housing’s Ups and Downs Servicers Navigate the Post-Pandemic World 2 days ago September 4, 2019 1,597 Views 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. Data Provider Black Knight to Acquire Top of Mind 2 days ago Affordability Crisis Foreclosure HOUSING 2019-09-04 Seth Welborn in Daily Dose, Featured, Market Studies, News About Author: Seth Welborn Previous: Federal Reserve Reports Economic Conditions Next: Choosing the Best Real Estate Investment Strategylast_img read more

3.5 Million New Mortgage Delinquencies Possible

first_imgSubscribe 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. Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / 3.5 Million New Mortgage Delinquencies Possible Previous: DS5: The Shifting Housing Landscape and Remote-Working Challenges Next: Delinquencies Could ‘Jump Significantly’ with Rising Unemployment in Daily Dose, Featured, Market Studies, News The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Postcenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 13, 2020 1,680 Views Demand Propels Home Prices Upward 2 days ago 3.5 Million New Mortgage Delinquencies Possible About Author: Mike Albanese Sign up for DS News Daily Tagged with: Delinqiency housing market 2020 mortgage Delinqiency housing market 2020 mortgage 2020-04-13 Mike Albanese Share Save Black Knight’s latest Mortgage Monitor Report revealed that using Great Recession mortgage performance, an unemployment rate of 15% could result in 3.5 million new mortgage delinquencies. The unemployment rate of 15% was projected by Goldman Sachs for Q2 2020. “Trying to gauge the impact of COVID-19 on mortgage performance is as much an art right now as a science,” said Graboske. “The fact is that there is no true point of comparison in the nation’s recent history for analysts to model against,” Black Knight Data & Analytics President Ben Graboske said. For comparison, of the more than 140,000 seriously-delinquent mortgages caused by the 2017 hurricane season, just 1% of homes were lost to foreclosure or short sale two years after the storms. Black Knight also said that if 5% of homeowners seek forbearance, servicers would need to advance more than $2.1 billion in principal and interest per month to security holders. If the number of homeowners seeking forbearance rises to 10%, the monthly cost could jump to $4.2 billion. “The various forbearance programs being offered to borrowers via the recently passed CARES Act, as well as via individual agencies and mortgage servicers, are a key difference today,” Graboske said. Black Knight also found the purchase demand has been impacted by economic uncertainty and recent social distancing efforts.After home affordability improved to its strongest level in more than three years, recent jumps in 30-year rates falling below record lows in early March have “significantly shifted the affordability landscape.” Black Knight said the payment required to purchase the average-price homes has fluctuated by more than 13% over the past two weeks. The buying power for a prospective homebuyer who qualified for a $1,000-per month mortgage with a 20% down payment rose from $270,000 at the start of the year to $292,000 on March 2 when 30-year rates fell to 3.13%. However, when rates hit 4.15% two weeks later, the same borrower would have qualified for only a $258,000 home purchase—a $34,000 reduction in homebuying power.  The Best Markets For Residential Property Investors 2 days agolast_img read more