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

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

DoD to resume giving anthrax shots

first_imgMay 4, 2005 (CIDRAP News ) – With a federal judge’s permission, the US Department of Defense (DoD) has announced it will resume giving anthrax shots to military personnel, but on a strictly voluntary basis.The DoD’s mandatory anthrax immunization program had been suspended since October 2004, when US District Judge Emmet G. Sullivan ruled that the Food and Drug Administration (FDA) did not follow proper procedures in approving the vaccine for inhalational anthrax.In January the FDA issued an “emergency use authorization” (EUA) permitting DoD to resume the vaccinations, but only on a voluntary basis. On Apr 6, Sullivan granted a DoD request to resume giving the shots under the terms of the emergency authorization.Yesterday the Pentagon announced it was ready to resume giving anthrax shots. Officials said the vaccinations would mostly be limited to military units assigned to the Central Command area, which includes the Middle East, and to troops serving in Korea and in homeland bioterrorism defense.”The implementing program requires commanders to follow EUA conditions very carefully, providing members of the armed services both education on the program and an option to refuse the vaccination without penalty,” the DoD announcement said.Dr. William Winkenwerder, assistant secretary of defense for health affairs, called the immunization program a “vital protection measure for military personnel, who are at increased risk of exposure to an anthrax attack.”A DoD policy memo about the program says the EUA is scheduled to expire on July 27, less than 3 months away. “At that time, other initiatives may result in resumption of the normal AVIP [Anthrax Vaccine Immunization Program], including mandatory vaccinations for selected personnel,” the memo says. “Alternatively, the EUA may be extended or other direction may be provided.”Perry Bishop, a Pentagon spokesman, said DoD will continue to press for mandatory vaccination, according to an Associated Press report published yesterday.The DoD memo says all personnel eligible for anthrax vaccination must be told they may refuse the shots and will not be punished. Troops must be told they will not be discharged for refusing and they can still be deployed. However, personnel must also be told, “Your military and civilian leaders strongly recommend anthrax vaccination,” the memo states.Personnel will be given a brochure that explains the known and potential benefits and risks of vaccination as well as the alternatives to vaccination.Before Sullivan’s ruling, anthrax shots were mandatory for personnel serving in areas where the risk of anthrax attack was considered high. More than 1.3 million troops had been vaccinated in the program, which began in 1998. But hundreds of troops refused the shots because of concern about side effects, and some were disciplined or discharged from the service.Sullivan’s ruling came in a lawsuit filed by six DoD personnel and civilian contractor employees who objected to the shots. In an initial ruling in December 2003, the judge ordered DoD to stop requiring the shots on the ground that the FDA had never specifically approved the vaccine for inhalational anthrax. The vaccine was originally licensed in 1970.The FDA responded immediately by declaring that the vaccine was safe and effective for all forms of anthrax. Sullivan then lifted his injunction in January 2004. But in his subsequent ruling in October 2004, Sullivan said the FDA had failed to follow its own rules in declaring the vaccine safe for all forms of the disease.Last December, military officials asked the Department of Health and Human Services (HHS) for emergency authority to resume the vaccination program. Under the Project Bioshield Act of 2004, the FDA, in a declared emergency, can authorize the use of a medical product that has not gained ordinary FDA approval. The FDA then issued the emergency authorization on Jan 27, but said the shots had to be voluntary.The anthrax vaccine used by DoD requires six shots over a period of 18 months, followed by annual boosters. Last November HHS awarded an $877 million contract for a new anthrax vaccine that officials hope will require fewer doses and have fewer side effects, but that vaccine is intended to go in a stockpile for civilian use.See also:May 3 DoD news releaseDoD policy memolast_img read more