Foreclosure Activity Decreases in April

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News’ sister site. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save Foreclosure Foreclosure Auction RealtyTrac REO 2014-05-15 Colin Robins Previous: New York Fed Finds Increasing Debt Levels in Q1 Next: DS News Webcast: Thursday 5/15/2014 Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, News, REOcenter_img About Author: Colin Robins Home / Daily Dose / Foreclosure Activity Decreases in April The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Subscribe RealtyTrac’s latest U.S. Foreclosure Market Report for April 2014, revealed foreclosure filings were down 1 percent from March, totaling approximately 115,000. April’s figure reflects a year-over-year decrease of 20 percent.The report found one in every 1,137 U.S. housing units with a foreclosure filing during the month.Although April saw a decrease in overall foreclosure activity for the month, bank repossessions increased 4 percent from March. REO properties, which totaled roughly 30,000 in April, are still down 14 percent from a year ago.”The rise in bank repossessions in many states is a sign that those markets are working through the final remnants of foreclosures left over from the recent housing crisis,” said Daren Blomquist, VP at RealtyTrac. “Many of these bank-owned homes are bottom-of-the-barrel properties in terms of location or condition, but they will provide some much-wanted inventory of homes for sale in some markets in the coming months. Investors and other buyers willing to do more extensive rehab will likely be best-suited for these incoming REOs.”Foreclosure auctions scheduled in April also fell, down 3 percent from the previous month and down 21 percent from a year ago. Foreclosure auctions have decreased annually for 41 consecutive months.New foreclosure starts declined nationally, but are up from a year ago in 16 states. Nationally, a total of 54,513 U.S. properties started the foreclosure process, down 2 percent from the previous month and down 22 percent from April 2013.States with the top foreclosure rates include Florida, Maryland, Delaware, Indiana, and New Jersey. Florida accounts for 11 of the top 20 metros in foreclosure rates.Bank repossessions increased from the previous month in 26 states and were up from a year ago in 16 states, including New York (142 percent), Oregon (91 percent), New Jersey (58 percent), Illinois (55 percent), Indiana (52 percent). Tagged with: Foreclosure Foreclosure Auction RealtyTrac REO Foreclosure Activity Decreases in April Governmental Measures Target Expanded Access to Affordable Housing 2 days ago May 15, 2014 648 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Postlast_img read more

FHFA Announces Strategic Plan for GSE Conservatorship, Regulation of FHL Banks

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Government, News Conservatorship Federal Home Loan Banks Federal Housing Finance Agency FHFA 2014-11-24 Brian Honea Tagged with: Conservatorship Federal Home Loan Banks Federal Housing Finance Agency FHFA Previous: Fannie Mae to Sell Foreclosed Vacant Properties to Detroit Land Bank Next: Foreclosure Campaign Gets Underway in Wayne County, Michigan FHFA Announces Strategic Plan for GSE Conservatorship, Regulation of FHL Banks The Federal Housing Finance Agency (FHFA) has announced its strategic plan for the fiscal years 2015 through 2019, reflecting the FHFA’s priorities as a regulator and conservator of government-sponsored enterprises Fannie Mae and Freddie Mac as well as regulator of the 12 Federal Home Loan (FHL) Banks.FHFA put together the report, entitled FHFA Strategic Plan: Fiscal Years 2015-2019, based on input on the draft agency strategic plan the FHFA received on request from members of Congress, the public, and stakeholders in accordance with the Government Performance and Results Modernization Act of 2010. The strategic plan outlines three goals for the FHFA for the forthcoming fiscal years: ensure safe and sound regulated entities; ensure liquidity, stability, and access in housing finance; and manage the enterprises’ ongoing conservatorship.The strategic plan reflects priorities outlined for the GSEs in the 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac, released by the FHFA in May 2014.Last week, FHFA issued its Performance and Accountability Report, which gave a detailed report of the agencies activities as conservator of the GSEs and regulator for the FHL Banks during fiscal year 2014. The agency received an unmodified, or “clean” audit opinion from the U.S. Government Accountability Office for its financial activities during fiscal year 2014. Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Sign up for DS News Daily Home / Daily Dose / FHFA Announces Strategic Plan for GSE Conservatorship, Regulation of FHL Banks  Print This Post Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago November 24, 2014 933 Views About Author: Brian Honealast_img read more

Wells Fargo Settles With DOJ Over Bankruptcy Rules Violations

first_img November 6, 2015 1,065 Views  Print This Post Subscribe Wells Fargo Settles With DOJ Over Bankruptcy Rules Violations Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Wells Fargo Bank and the Department of Justice’s U.S. Trustee program have entered into a settlement agreement over the bank’s acknowledged violation of federal bankruptcy rules that took effect in December 2011, according to an announcement from the DOJ.Under the terms of the settlement, Wells Fargo is required to pay $81.6 million in remediation to homeowners who were in bankruptcy between December 11, 2011, and March 31, 2015. The bank has acknowledged that repeatedly failed to timely file more than 100,000 payment change notices (PCNs), which are required to be filed by mortgage creditors and served 21 days before the Chapter 13 debtor’s monthly mortgage payment is adjusted (Bankruptcy Rule 3002.1).The bank also acknowledges that it failed to perform more than 18,000 escrow analyses on nearly 68,000 mortgage accounts of homeowners in bankruptcy during the three-plus year period from December 2011 to March 2015. Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Wells Fargo Settles With DOJ Over Bankruptcy Rules Violations Bankruptcy Department of Justice Wells Fargo 2015-11-06 Brian Honea Demand Propels Home Prices Upward 2 days ago Tagged with: Bankruptcy Department of Justice Wells Fargocenter_img Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News Related Articles The Best Markets For Residential Property Investors 2 days ago “I am pleased that Wells Fargo has acted responsibly by accepting accountability for its deficient bankruptcy practices, agreed to compensate affected homeowners for those deficiencies and committed to making necessary improvements in its bankruptcy operations,” said Director Cliff White of the U.S. Trustee Program. “When creditors fail to comply with the bankruptcy laws and rules, they compromise the integrity of the bankruptcy system and must be held accountable. Transparency in the process is of paramount importance. Homeowners in bankruptcy have the right to proper and timely notices, particularly when they are being asked to pay more. The U.S. Trustee Program remains diligent in its effort to hold financial institutions that disregard the law accountable for their actions.”Wells Fargo has also agreed to change its internal operations and submit to oversight by an independent monitor who will periodically perform compliance checks and file reports with the bankruptcy court, according to the DOJ. The two parties have selected Lucy Morris of Hudson Cook LLP as the independent reviewer, and the bank will pay all costs associated with the compliance reviews.“We believe we have made the necessary investments and improvements in our systems and processes to ensure that payment change notices for the bankruptcy court and escrow analyses for customers in bankruptcy are properly prepared and delivered in a timely fashion,” said Michael DeVito, executive vice president for Wells Fargo Home Mortgage. “We will work with the U.S. Trustee’s office and an independent reviewer to demonstrate the effectiveness of our improvements and to provide payments to customers, as required.”Click here for a breakdown of the settlement terms. About Author: Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago “Homeowners in bankruptcy have the right to proper and timely notices, particularly when they are being asked to pay more.”Department of Justice Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Previous: Fannie Mae, Freddie Mac Q3 Earnings Reports Fuel Bailout Speculation Next: OCC to Test Banks for TRID Compliancelast_img read more

Foreclosures Drop Nationally, Some States Can’t Keep Up

first_img in Daily Dose, Featured, Foreclosure, News The Best Markets For Residential Property Investors 2 days ago Related Articles  Print This Post Foreclosures Drop Nationally, Some States Can’t Keep Up ATTOM Data Solutions Foreclosure 2017-03-16 Staff Writer Share Save Demand Propels Home Prices Upward 2 days ago About Author: Staff Writer Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Trump Names New Finance Officials Next: Black Knight Introduces Loan Origination Software for Small-Midsized Lenders Tagged with: ATTOM Data Solutions Foreclosure Servicers Navigate the Post-Pandemic World 2 days ago ATTOM Data Solutions’ recent foreclosure study shows foreclosures are at an 11-year low in ATTOM’s February 2017 Foreclosure Activity, the lowest since 2005. Additionally, foreclosure activity has decreased on a year-over-year basis for the 17th consecutive month.Though foreclosures are dropping nationally, 10 states and the District of Columbia experienced increases in foreclosure activity. D.C. has seen foreclosure activity increase on a year-over-year basis for 12 consecutive months, ending in February 2017. Other states with year-over-year-increases include New Jersey which rose 16 percent, Delaware (up 14 percent), Louisiana (up 12 percent), Alabama (up 10 percent), and Hawaii (up 8 percent).Three of the nation’s 20 largest metro areas also posted year-over-year increases in foreclosure activity. Houston rose 97 percent over an abnormally low February 2016, while San Francisco and New York saw year-over-year increases in foreclosure activity of 25 percent and 9 percent, respectively.Foreclosure starts increased 7 percent nationally month-over-month in February 2017, but were still down 13 percent from a year ago. This is the 20th consecutive month with a year-over-year decrease in foreclosure starts. However, Fifteen states and D.C. saw a year-over-year increase in foreclosure starts. These states include Alabama, which saw a 40 percent increase in foreclosure starts, Texas (up 26 percent), New Jersey (up 24 percent), Florida (up 12 percent), Illinois (up 11 percent), and Arizona (up 9 percent).In Texas, foreclosure starts have increased annually in three of the last four months, two of the last three months in New Jersey, six of the last seven months in Illinois, and six of the last 12 months in Arizona.While foreclosures decrease nationally, so do bank repossessions. The national rate of bank repossession (REO) dropped 7 percent from the previous month in February 2017, and are down 18 percent year-over-year. Still, 15 states including D.C. posted year over year increases in REOs. Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago March 16, 2017 1,733 Views Home / Daily Dose / Foreclosures Drop Nationally, Some States Can’t Keep Up Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

How Cryptocurrency Can Help Fund Affordable Housing

first_img Share Save Communities across the nation are struggling to provide enough affordable housing for their residents, high home prices and low inventory ensuring strongly competitive markets in many corners of the U.S. According to the California Department of Housing and Community Development (HCD), only 13 cities (2.4 percent of the total) met their full goals last year. Or, put another way, 97.6 percent of cities did not meet their full goals. Worse, 70 percent of California cities failed to meet their housing goals for any income level. In the face of this crisis, the city of Berkeley is turning to Bitcoin for inspiration.Berkeley City Councilmember Ben Bartlett and Mayor Jesse Arreguin are teaming with UC Berkeley’s Blockchain Lab and finance startup Neighborly to look into creating a new cryptocurrency that would be backed municipal bonds. The funds raised by the cryptocurrency’s “initial coin offering” (ICO) would then be put toward affordable housing measures. Purchasers of the cryptocurrency could then use the digital “tokens” they receive in exchange to shop at local establishments, or even possibly pay their rent at local participating apartment complexes.”We have a jobs explosion and a super-tight housing crunch,” Bartlett said. “You’re looking at a disaster. We thought we’d pull together the experts and find a way to finance [affordable housing] ourselves.”In a media statement, Neighborly Project Manager Garrett Brinker said, “Berkeley is struggling to build sufficient affordable housing, especially as federal funds dry up and the new tax bill restricts their financing capabilities. An initial community offering presents a unique opportunity to help raise the necessary funds through local investors to build low-cost housing while striving to improve social well-being and equity.”Councilmember Bartlett said that “Cryptocurrencies enable the city to mitigate some … potentially detrimental effects and help localize the financing of crucial social policy initiatives. Blockchain’s benefits, such as security, efficiency, transparency, and speed, are not only applicable, but much needed at the government level to deliver better and more streamlined services to the people who need it most.”Pending proper approvals, Neighborly COO COO Kiran Jain said the city could launch its “initial community offering” of the Berkeley cryptocurrency by mid-May. “Unlike most of the ICOs which deliver coins for a future value or service, these coins will represent a real security issued for a specific purpose,” Jain said.It might still be a while before people are regularly using cryptocurrencies to pay for their mortgages, but in the meantime people continue to find ways to innovate with the technology. To stay on the cutting edge of cryptocurrencies, blockchain, machine learning, and other technological concepts that are positioned to evolve and disrupt the mortgage and housing industry, be sure to register for the upcoming inaugural Five Star Fintech Summit, happening March 21-22 at the Renaissance Nashville Hotel in Nashville, Tennessee. Click the banner below for more info. Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago February 19, 2018 3,050 Views How Cryptocurrency Can Help Fund Affordable Housing The Best Markets For Residential Property Investors 2 days ago Previous: Which U.S. Cities are Embracing Reverse Mortgages? Next: More Communities Banning Plywood on Zombie Homes Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / How Cryptocurrency Can Help Fund Affordable Housing in Daily Dose, Featured, Headlines, Journal, News, Technology About Author: David Wharton Related Articles Affordable Housing Affordable Housing Crisis bitcoin cryptocurrency housing shortages 2018-02-19 David Wharton The Best Markets For Residential Property Investors 2 days ago Tagged with: Affordable Housing Affordable Housing Crisis bitcoin cryptocurrency housing shortages Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agolast_img read more

Fannie Mae, Freddie Mac, and the QM Patch

first_img Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Home / Daily Dose / Fannie Mae, Freddie Mac, and the QM Patch Fannie Mae FHFA Fredde Mac GSE Lending 2019-05-13 Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Tagged with: Fannie Mae FHFA Fredde Mac GSE Lending  Print This Post Fannie Mae, Freddie Mac, and the QM Patch About Author: Seth Welborn Sign up for DS News Daily center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe May 13, 2019 2,719 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Will San Francisco Experience an IPO Housing Boom? Next: Measuring Consumer Economic and Housing Market Expectations According to the Wall Street Journal, Fannie Mae and Freddie Mac have been increasingly backing loans to borrowers with heavy debt loads. The Journal reports that 30% of loans packaged into into bonds by Fannie and Freddie within the last year were to homebuyers whose total debt payments amounted to more than 43% of their incomes. This share has doubled since 2015.“Some say cheap, federally backed financing has made credit available for millions of borrowers who otherwise might not have had a shot at homeownership,” said WSJ’s Ben Eisen. “Others say that more-indebted borrowers are riskier, and that their purchases may be accentuating a rise in home prices that in many areas has outstripped median incomes.”One possible factor driving the increase is the qualified mortgage patch (QM patch). The Urban Institute estimates that an additional 3.3 million mortgages were originated between 2014 and 2018 because of the patch. Additionally, though the GSEs have tightened some standards, Fannie announced around two years ago that it would more freely guarantee mortgages with debt-to-income ratios of between 45% and 50%. Federal Housing Finance Agency (FHFA) Director Mark Calabria has announced that he plans to address the issue, while working to move Fannie and Freddie out of conservatorship.Patch usage has grown in the last few years, and according to Calabria, changing the patch would be a key tool to shrink Fannie and Freddie without a full overhaul, though he states that he does not intend to do away with it entirely.In a recent interview with the Journal, Calabria stated that he wants to put the now-profitable GSEs back into private hands, something that has been tried and failed by lawmakers in the past.“I see my goal as setting a path to end the conservatorship” for the companies, he said, adding that “they have to be stronger, healthier companies” compared to before the 2008 housing crisis.“My objective is to get us to a spot where we don’t have to worry about the system blowing itself up,” he continued. Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, Loss Mitigation, News, Secondary Market Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

CFPB Grants Bank of America No-Action Letter

first_imgSign up for DS News Daily Home / Daily Dose / CFPB Grants Bank of America No-Action Letter January 13, 2020 1,985 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Tagged with: Bank of America CFPB HUD NAL CFPB Grants Bank of America No-Action Letter About Author: Seth Welborn Share Save Related Articles Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Consumer Financial Protection Bureau (CFPB) has granted a no-action letter (NAL) to Bank of America, N.A. regarding the bank’s funding arrangements with housing counseling agencies (HCAs) certified by the U.S. Department of Housing and Urban Development (HUD).  NALs provide increased regulatory certainty through a statement that the Bureau will not bring a supervisory or enforcement action against a company for providing a product or service under certain facts and circumstances.The CFPB issued a revised NAL Policy in September 2019, which improved on the Bureau’s 2016 NAL Policy by having, among other things, a more streamlined review process focusing on the consumer benefits and risks of the product or service in question. According to the CFPB, regulatory uncertainty can “hinder the development” of innovative products and services that benefit consumers.NALs provide increased regulatory certainty through a statement that the CFPB will not bring a supervisory or enforcement action against a company for providing a product or service under certain circumstances.“The new NAL Policy improves on the Bureau’s 2016 NAL Policy by having, among other things, a more streamlined review process focusing on the consumer benefits and risks of the product or service in question.” the CFPB says.Basing its application on the template the Bureau approved in response to HUD’s request, Bank of America applied for a NAL to facilitate funding arrangements with HCAs.The CFPB’s first NAL under the new policy is in response to a request by the Department of Housing and Urban Development (HUD) on behalf of more than 1,600 housing counseling agencies (HCA) that partake in HUD’s housing counseling program.HUD discussed concerns in 2018 to the CFPB about the HCAs and lenders not entering into agreements that would fund counseling services due to uncertainty of the Real Estate Settlement Procedures Act (RESPA).Bank of America’s NAL application can be found here. Bank of America CFPB HUD NAL 2020-01-13 Seth Welborn in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: $13.4M in Investments Proposed for Puerto Rico Next: Roofstock Closes $50M SFR Equity Round Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Forbearances Experience First Drop Since Crisis Began

first_img Tagged with: Forbearance mortgage The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News 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 Forbearance mortgage 2020-06-05 Seth Welborn Forbearances Experience First Drop Since Crisis Began About Author: Seth Welborn Home / Daily Dose / Forbearances Experience First Drop Since Crisis Began The Best Markets For Residential Property Investors 2 days ago Subscribe Related Articles Previous: DS5: The Future of the Pass-Through Assistance Program Next: Housing, Economy Turning Corner Amidst COVID-19 Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Share Save Governmental Measures Target Expanded Access to Affordable Housing 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. June 5, 2020 1,414 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Forbearances have seen their first decline since the COVID-19 crisis began, according to data from Black Knight. According to the McDash Flash Forbearance Tracker, as of June 2, 2020, 4.73 million homeowners, representing 8.9% of all mortgages are in COVID-19 mortgage forbearance plans. That’s down from 4.76 million last week. The number of loans in active forbearance decreased by a net 34,000 over the past week, marking the first weekly decline since the CARES Act was enacted and the flood of forbearance requests began.There was actually a net decline of 43,000 forbearances among government-backed mortgages (Fannie, Freddie and FHA/VA) from May 26 to June 2, but this was partially offset by an increase of 9,000 forbearances among mortgages in bank portfolios and private-label securities.“While this decline is welcome news, there are still concerning signs in the data,” said Black Knight CEO Anthony Jabbour. “According to Black Knight’s McDash Flash Payment Tracker, far fewer homeowners in forbearance remitted May payments than did in April. If that trend holds true through the end of the month, the market should be prepared for another likely rise in the delinquency rate for May. Also, expanded unemployment benefits are scheduled to end on July 31. It remains to be seen how that will impact both forbearance requests and overall mortgage delinquencies.”Black Knight notes that the decline is driving a shift in servicer focus from forbearance pipeline growth to forbearance pipeline management.“While this decline is welcome news,” Jabbour continued, “there are still concerning signs in the data. According to Black Knight’s McDash Flash Payment Tracker, far fewer homeowners in forbearance remitted May payments than did in April. If that trend holds true through the end of the month, the market should be prepared for another likely rise in the delinquency rate for May. Also, expanded unemployment benefits are scheduled to end on July 31. It remains to be seen how that will impact both forbearance requests and overall mortgage delinquencies.”last_img read more

Effective Foreclosure Prevention in a Crisis

first_img Previous: CFPB Details the Debt Struggle Next: Share of Mortgages in Forbearance Drops NO MORATORIUM, TWO-YEAR BACKLOGOne example of this is Ohio, where the state legislature considered but never enacted a statewide foreclosure moratorium. After hitting an initial peak in 2010, completed foreclosures in Ohio declined 13% in 2011, much less than the 67% drop in New Jersey. Completed foreclosures in Ohio rebounded higher for the next two years—a relatively brief uptick compared to the six-year upward trend in New Jersey—before embarking on a six-year downward trend from 2014 through 2019. During the thick of the housing crisis, Ohio registered a much higher foreclosure rate than did New Jersey.Completed foreclosures in Ohio between 2008 and 2014 represented 4.5% of the state’s housing units, similar to the 4.4% foreclosure rate nationwide, while completed foreclosures in New Jersey during the same timeframe accounted for just 1.3% of all housing units. But in the last five years, while Ohio and most other states were experiencing a strong housing recovery, New Jersey continued to work through a backlog of delayed foreclosures. Completed foreclosures in New Jersey between 2015 and 2019 represented 2.7% of the state’s housing units, compared to a 1.9% rate in Ohio and a 1.3% rate nationwide during the same period. NO FLOOD OF DAMMED-UP DISTRESSThe Black Knight analysis also found that only 1% of loans that became seriously delinquent in the wake of Hurricane Harvey had gone to foreclosure sale by February 2020. Similarly, data from the Auction.com platform shows a relatively mild uptick in foreclosure auctions after the moratoriums were lifted. Completed foreclosure auctions rose above pre-hurricane levels starting nine months after the hurricane, in May 2018, but fell back below pre-hurricane levels starting in December 2018, 15 months after the hurricane.The combination of a relatively brief foreclosure moratorium paired with robust forbearance and loan modification helped Houston prevent crisis-induced foreclosures while also avoiding a massive flood of dammed-up distress crashing into the housing market down the road. This approach also helped home values in Houston stay afloat: home price appreciation in the metro area slowed to 1% in September 2018, in the midst of the post-moratorium foreclosure uptick, but never went negative, according to an analysis of public record data from ATTOM Data Solutions. Since that low point in September, home price appreciation in Houston has averaged a healthy 4% each month. in Daily Dose, Featured, Foreclosure, News, Print Features  Print This Post This story originally appeared in the July edition of DS News.Proactive and relatively short-term mortgage forbearance paired with pragmatic loss mitigation solutions has proven to be the most effective combination for preventing unnecessary foreclosures following a market crisis—without perpetuating the pain of that crisis. And while foreclosure moratoriums can bring short-term relief to a market in crisis, they are ineffective and even potentially harmful when used as a long-term foreclosure prevention treatment.These are lessons that jump out when reviewing foreclosure and home price data in the aftermath of the Great Recession of 2008 as well as more recent, regional market trauma caused by natural disasters. Share Save About Author: Daren Blomquist Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe LEGACY DISTRESS STILL LINGERINGAnd New Jersey is far from done working through the long tail of legacy distress from the last recession, even as another recession hits. Fifty-seven percent of all completed foreclosure auctions in New Jersey in 2019 were tied to properties purchased during the housing bubble of 2003 to 2008 according to the ATTOM data. Nationwide, the percentage of completed foreclosure auctions tied to bubble-era purchases first fell below 57% in 2015 and dropped to a new low of 39% in 2019. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Daren Blomquist is VP of Market Economics at Auction.com. In this role, Blomquist analyzes and forecasts complex macro- and microeconomic data trends within the marketplace and greater industry to provide value to both buyers and sellers using the Auction.com platform.Blomquist’s reports and analysis have been cited by thousands of media outlets nationwide—including all the major news networks and leading publications such as the Wall Street Journal, the New York Times, and USA TODAY. Blomquist has been quoted in hundreds of national and local publications and has appeared on many national network broadcasts, including CBS, ABC, CNN, CNBC, FOX Business, and Bloomberg. SLUGGISH HOME PRICE RECOVERYNew Jersey’s low-grade foreclosure fever over the past five years has contributed to a slower rebound in home values when compared to Ohio and the nation as a whole. An analysis of median home price data from ATTOM shows that while New Jersey home prices have increased 40% since bottoming out in February 2012, they are still 7% below the pre-recession peak in July 2007. By comparison, Ohio home prices have jumped 110% from the bottom and are 25% above their pre-recession peak. Nationwide, median home prices are up 82% from the bottom and are 17% above their pre-recession peak. Lingering legacy foreclosures contribute to slower home price growth in at least two ways: the market uncertainty associated with a shadow inventory of unresolved distress; and the drag on surrounding home values that comes with an elevated share of distressed sales.The more sluggish housing recovery in New Jersey also meant that housing markets there were more susceptible to subsequent, more localized market shocks: Hurricane Sandy in 2012 and Atlantic City casino closings from 2014 to 2016. By contrast, housing markets in Florida and Texas were more prepared to absorb the shock of the hurricanes that hit those states in the summer of 2017. Before the hurricanes hit, median prices in Florida had rebounded 99% from the bottom and were just 9% below the pre-recession peak while median prices in Texas had rebounded 75% from the bottom and were 45% above the pre-recession peak (home prices were not hit as hard in Texas during the Great Recession). Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Effective Foreclosure Prevention in a Crisis July 13, 2020 1,645 Views 2020-07-13 Mike Albanese Data Provider Black Knight to Acquire Top of Mind 2 days ago THE COVID-19 RESPONSEThe COVID-19-triggered crisis is neither a natural disaster nor a repeat of the Great Recession, but lessons from the 2008 and 2017 crises can still be applied, including the lesson of how to achieve effective foreclosure prevention without inflicting long-term harm to the housing market. The COVID-19-related forbearance policies put in place thus far by the Federal Housing Finance Administration (FHFA), which oversees Fannie Mae and Freddie Mac, as well as FHA, have laid a solid foundation for effective foreclosure prevention in the aftermath of this crisis.These forbearance programs were introduced quickly and pro-actively by the CARES Act, signed into law exactly two weeks after the national emergency declaration relating to the COVID-19 crisis. Since then, both FHA and FHFA have introduced sensible plans that allow many borrowers to exit forbearance without experiencing an immediate deferred payment shock. Furthermore, these forbearance-exit plans will prevent borrowers from experiencing negative credit ramifications when they refinance their loan or buy another home. With these robust forbearance programs in place, the foreclosure moratorium that now extends through August 31, 2020, can safely be lifted, preventing a large backlog of deferred distress from building up even while the forbearance programs provide ample foreclosure protection for homeowners impacted by the COVID-19 crisis.The longer that deferred distress backlog builds, the more uncertainty it creates for the mortgage and housing markets, resulting in tighter lending and weaker demand. Furthermore, the bigger the backlog, the bigger the shock to the housing market when it is eventually lifted. ONE-YEAR MORATORIUM, SIX-YEAR BACKLOGNew Jersey serves as a cautionary tale for overreliance on the moratorium as a foreclosure prevention tool. In response to the robo-signing accusations that came to light in late 2010—involving questionable foreclosure documentation practices—the New Jersey State Supreme Court imposed a statewide foreclosure moratorium that extended for nearly a year. Although individual servicers instituted voluntary moratoriums in the wake of the robo-signing accusations, New Jersey’s blanket statewide moratorium was one of the most extensive and lengthy to be implemented at the state level. In the short term, the New Jersey moratorium had its intended impact in the form of a dramatic drop in completed foreclosure auctions, which decreased 67% in 2011 compared to 2010, according to an Auction.com analysis of public record data from ATTOM Data Solutions. But not long after that moratorium was lifted, completed foreclosure auctions in New Jersey began to rise, increasing 43% in 2012.And that increase was not just a one-year catch-up. Completed foreclosures in New Jersey increased for the next five years, returning to the pre-moratorium level of more than 9,500 in 2014 and eventually hitting a peak of more than 23,000 in 2017—up an eye-popping 652% from 2011. That trend stands in stark contrast to what was going on nationwide, where completed foreclosures peaked in 2010 before beginning a steady downward trend that continued through 2019. No national foreclosure moratorium was implemented during this time. Much of the national decline following 2010 was driven by states such as California and Arizona, which were less impacted by the robo-signing issue and did not implement a statewide foreclosure moratorium.These states also employed the more streamlined, non-judicial foreclosure process. But even in other judicial foreclosure states that were more impacted by robo-signing, the pattern of prolonged foreclosure pain was not as extreme as it was in New Jersey. The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Home / Daily Dose / Effective Foreclosure Prevention in a Crisis FINALLY, FORBEARANCEThe bigger home equity cushion in both Texas and Florida certainly helped to soften the foreclosure impact caused by the 2017 hurricanes, but policymakers and servicers also implemented a highly effective foreclosure prevention strategy that combined an instantly activated, but relatively short-term, foreclosure moratorium with pro-active forbearance that transitioned into sustainable loan modification for distressed homeowners. In Houston, for example, Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) all enacted 90-day foreclosure moratoriums for areas impacted by Hurricane Harvey just days after the hurricane hit the city in late August 2017.Fannie and Freddie ended that moratorium after the initial 90 days while FHA extended its moratorium another 90 days, through the end of February 2018. Pro-active forbearance was offered to impacted homeowners concurrent to those foreclosure moratoriums. Fannie Mae, for example, authorized servicers to “grant an initial forbearance plan of up to six months with the possibility of extension to any borrower who they suspect has been impacted by a natural disaster.” In the Fannie Mae example, servicers were encouraged to identify the best loan modification option for distressed borrowers to help them transition out of forbearance and not fall behind on mortgage payments. In an analysis published in September 2019, two years after Hurricane Harvey, Fannie Mae found that 55% of loans in hurricane-impacted areas that became delinquent after the hurricane were modified. The Fannie Mae analysis also found that just 4.6% of loans in impacted areas thatinitially became delinquent after the hurricane were still delinquent two years later. In other words, about 95% were current or prepaid. A similar analysis by Black Knight found that just 5% of loans that became seriously delinquent following Hurricane Harvey were still seriously delinquent in February 2020.last_img read more

The American Housing Industry’s Biggest Challenges

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Share Save Demand Propels Home Prices Upward 1 day ago Historically low interest rates and sustained strength in numerous economic sectors have helped jump the for-sale housing market this year. However, the housing industry is bearing a particularly harsh brunt of COVID-19—especially in terms of a scarcity of affordable rental housing, unequal access to good-quality homes, and vulnerability of much of the housing stock to natural disasters. Harvard University’s Joint Center for Housing Studies has released the 2020 State of the Nation’s Housing report, which highlights these housing industry challenges.Renters earning under $25,000 yearly were much more likely to report lost employment income since the March shutdown as of the waning days of September. During this period, over 50% of lowest-income renters experienced dwindling wages. In comparison, 41% of all households–and around one in five renters earning less than $25,000 reported being behind on rent.While state and federal moratoriums have so far put a partial brake on evictions, in light of the lack of federal aid, payments have been missed by a number of households that might not be in a position to cover their back rents. Consequently, eviction and possible homelessness could become inevitable.Also hit disproportionately hard have been homeowners, households of color, and low wage earners. A total of 36% of all homeowners reported the loss of income between March and September while the shares top out at 44% among owners earning under $25,000, with Black owners at 41%, Hispanic, 49%. Toward the end of September, 7% of White homeowners were behind on mortgage payments compared to 18% of Hispanic owners, 17% of Black owners, and 12% of Asians owners.In October, the FHFA released its Annual Housing Report, which outlines Freddie Mac’s and Fannie Mae’s 2019 affordable housing activities, fulfilling a requirement of 1992’s Safety and Soundness Act, and more, according to TheMReport.com.In addition to describing the GSE’s affordable housing-related actions, the report provided information about single-family loan GSE purchases broken down by race or ethnicity, gender, census tract median income, fixed-rate vs. adjustable-rate, loan-to-value ratio, and credit score, according to the introduction.Some examples of single-family goals, outlined in the report:A low-income home purchase goal for home purchase mortgages to families with incomes no greater than 80% of area median income (AMI);A very low-income home purchase goal for home purchase mortgages to families with incomes no greater than 50% of AMI;A low-income areas home purchase subgoal for home purchase mortgages to families living in census tracts, with tract incomes no greater than 80% of AMI, or families with incomes no greater than 100% of AMI who live in census tracts with a minority population of 30% or more, and a tract median income of less than 100% of AMI;The report also delves into subprime, nontraditional, and higher-priced mortgage loan data.Finally, the document includes information about the national mortgage market based on the National Mortgage Database (NMDB), a program jointly funded and managed by FHFA and the Consumer Financial Protection Bureau, designed to provide a robust source of information about the U.S. mortgage market.The new State of the Nation’s Housing report is available in its entirety here. Data Provider Black Knight to Acquire Top of Mind 1 day ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News 2020-11-19 Cristin Espinosa Home / Daily Dose / The American Housing Industry’s Biggest Challenges The Best Markets For Residential Property Investors 2 days ago Previous: FHFA Announces Milestone Toward Ending Conservatorships Next: How Mortgage Servicers Can Turn COVID’s Biggest Challenges into Customer Retention Demand Propels Home Prices Upward 1 day ago The American Housing Industry’s Biggest Challenges  Print This Post About Author: Chuck Green Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Chuck Green has contributed to the Wall Street Journal, Washington Post, Los Angeles Times, San Francisco Chronicle, Chicago Tribune and others covering various industries, including real estate, business and banking, technology, and sports. Servicers Navigate the Post-Pandemic World 1 day ago November 19, 2020 1,274 Views Data Provider Black Knight to Acquire Top of Mind 1 day ago Servicers Navigate the Post-Pandemic World 1 day ago Subscribelast_img read more