Loan Modifications Remain Stable in February

first_img Demand Propels Home Prices Upward 2 days ago Foreclosures HAMP HOPE NOW Loan Modifications Short Sales 2014-04-14 Colin Robins Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago HOPE NOW, a private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors, released its February 2014 loan modification data. The group reported that an estimated 42,000 homeowners received permanent modifications in the month, including modifications from proprietary programs and the government’s Home Affordable Modification Program (HAMP).Modifications decreased in February from January by 5 percent.Since it began tracking data in 2007, 6.93 million modifications have been recorded by HOPE NOW. Approximately 5.6 million homeowners have received proprietary loan modifications, while approximately 1.3 million homeowners have utilized HAMP modifications.For the month of February, HOPE NOW reports that foreclosure sales declined significantly to approximately 36,000 sales. Compared to January’s sales of 48,000, foreclosure sales decline by 24 percent. Foreclosure starts totaled roughly 69,000, an 8.0 percent decline from January.Delinquencies of 60 days or more were under two million for the second straight month at approximately 1.98 million.The group reported, “For comparison purposes, there were 4.13 million homeowners in 60+ day delinquency in December of 2009—more than twice the current number.”Eric Selk, Executive Director of HOPE NOW, said, “Mortgage solution data collection continues to be a focus for HOPE NOW. We are pleased by the efforts of our servicer members, non-profit partners and government partners on behalf of struggling homeowners. Even with serious delinquencies in decline, the industry continues to offer homeowners a multitude of sustainable and viable solutions that are alternatives to foreclosure.”Short sales decreased in February to 11,000, an 8 percent drop from January’s figure of 12,000. Completed deed-in-lieu transactions were roughly 2,300 in February, down 8 percent from 2,500 transactions in January. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Loan Modifications Remain Stable in February Share Save April 14, 2014 745 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, Market Studies, News Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img About Author: Colin Robins Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Loan Modifications Remain Stable in February Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: 4 Indicted in ‘Massive Bank Fraud Scheme’ Next: Lincoln Appraisal & Settlement Services President Earns Appointment Demand Propels Home Prices Upward 2 days ago Tagged with: Foreclosures HAMP HOPE NOW Loan Modifications Short Sales Servicers Navigate the Post-Pandemic World 2 days ago Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News’ sister site.  Print This Post Related Articles Subscribelast_img read more

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Home Prices Move Upward in March

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Black Knight Home Price Index Home Prices Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save May 27, 2014 593 Views About Author: Colin Robins Home / Daily Dose / Home Prices Move Upward in March Sign up for DS News Daily 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. Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribecenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Black Knight’s Data and Analytics division released its latest Home Price Index (HPI), based on March 2014 residential real estate transactions. The group found that home prices rose 1.0 percent for the month, reflecting a yearly increase of 7.0 percent.The company combines its extensive property and loan-level databases to create a repeat sales analysis of home prices every month for more than 18,500 U.S. ZIP codes. Black Knight’s HPI represents the price of non-distressed sales by accounting for price discounts from REO and short sales.The average home price in March was $235,000, up 7 percent from the previous year’s HPI of $220,000. Since the beginning of the year, home prices have increased by 1.5 percent from $231,000.Home prices in March are 12.8 percent off of the home price peak of $269,000 seen in 2006.Statewide, Michigan and Washington, D.C. led monthly gains, each showing positive increases of 1.6 percent. Washington (1.5 percent), Oregon (1.5 percent), and Illinois (1.5 percent) rounded out the top five for states with the largest increase in home prices.The bottom five states had only one state with a decrease, Connecticut, which fell 0.1 percent for the month. Rhode Island (0.1 percent), Vermont (0.2 percent), New Hampshire (0.3 percent), and Arkansas (0.4 percent) rounded out the bottom five in price gains.By metro, cities with the largest increase in HPI include San Jose, California (2.2 percent); San Francisco, California (2.0 percent); Detroit, Michigan (1.8 percent); Seattle, Washington (1.8 percent); and Grand Rapids, Michigan (1.7 percent).The company noted that seven of the 40 largest metro areas hit new peaks in March, suggesting that perhaps a sluggish first quarter is on its way to rebounding in time for summer. Demand Propels Home Prices Upward 2 days ago Home Prices Move Upward in March Related Articles Black Knight Home Price Index Home Prices 2014-05-27 Colin Robins Previous: DS News Webcast: Tuesday 5/27/2014 Next: Mortgage Master Opens New Retail Branch Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post in Daily Dose, Featured, Headlines, Market Studies, Newslast_img read more

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HUD, VA Work Together to End Veteran Homelessness

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / HUD, VA Work Together to End Veteran Homelessness The U.S. Department of Housing and Urban Affairs (HUD) and the Department of Veterans Affairs (VA) announced Monday that they will partner to provide resources to help nearly 2,000 homeless veterans find and sustain permanent housing.The two agencies will be providing help for homeless veterans through the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program, combining HUD’s rental assistance with the VA’s case management and clinical services. In October 2013, the agencies awarded a combined $62 million in the form of HUD-VASH vouchers to 9,000 homeless veterans.On Monday, the agencies announced they will award an additional $13.5 million in HUD-VASH vouchers to assist 1,984 veterans with obtaining housing. The partnership between the two government agencies is part of HUD’s focus of advancing policies that create opportunities for all Americans and is a step toward HUD’s broader goal of ending veteran homelessness. In November, HUD announced a partnership with Washington, D.C.-based non-profit National League of Cities (NLC) with that goal in mind.”It is unacceptable that after their service and sacrifice, too many of our veterans find themselves living on our streets and in our shelters,” HUD Secretary Julián Castro said.  “We’ve made significant progress reducing homelessness among veterans by a third in just four years, and these vouchers will continue to help communities build on these gains, providing targeted assistance to those in need to ensure that every veteran has a home.”More than 68,000 HUD-VASH vouchers have been awarded to more than 80,000 homeless veterans since 2008. Also, Opening Doors: Federal Strategic Plan to End Homelessness demonstrates the government’s commitment to working with state and local communities to confront the root causes of homelessness, particularly among veterans. President Obama has asked for an additional $75 million in funding for HUD-VASH vouchers as part of his budget request to congress for fiscal year 2015.In the HUD-VASH program, VA Medical Centers (VAMCs) determine the need for housing for a particular veteran after assessing a number of factors, particularly the duration of homelessness and how much support the veteran will need in order to obtain and maintain housing for the long term. VAMCs will then refer the veteran to a local housing agency for the voucher. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago December 8, 2014 1,490 Views Share Save Tagged with: Department of Veterans Affairs HUD Veteran Homelessness Demand Propels Home Prices Upward 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. About Author: Brian Honea in Daily Dose, Featured, Government, News Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Subscribe 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  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Department of Veterans Affairs HUD Veteran Homelessness 2014-12-08 Brian Honea The Best Markets For Residential Property Investors 2 days ago Previous: Mortgage Professionals Support Reducing Presence of GSEs in Market Next: Home Sales Increase in Rhode Island for October Related Articles Sign up for DS News Daily HUD, VA Work Together to End Veteran Homelessnesslast_img read more

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If You Build It…

first_imgHome / Daily Dose / If You Build It… Servicers Navigate the Post-Pandemic World 2 days ago Previous: McCalla Raymer Leibert Pierce Expands, Welcomes Former Buckley Madole Shareholders Next: What the Tax Reform Could Mean for Housing If You Build It… 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 Share Save Tagged with: census construction spending data Construction Spending NAHB National Association of Home Builders residential construction spending single-family construction spending Single-Family Homes single-family housing The Best Markets For Residential Property Investors 2 days ago About Author: David Wharton The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily in Daily Dose, Featured, Journal, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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] A new National Association of Home Builders (NAHB) analysis reveals that single-family construction spending continued to grow in October 2017, climbing 0.3 percent for the month.The NAHB analyzed Census Construction Spending Data and found that the strong single-family construction spending gains were also helping shore up total private residential construction spending, which grew 0.4 percent in October, following a 0.2 percent decrease in September 2017. That amounts to a seasonally adjusted annual rate of $517.7 billion. Overall, total private residential construction spending was 7.4 percent higher in October than it was a year prior.NAHB’s construction spending index, seen below, charts changes in single-family construction spending, multi-family construction spending, and home improvement spending since 2000. All three have been trending upwards for most of the decade. For comparison’s sake, in October 2017 remodeling spending was also on the rise, leaping up 1.4 percent. Multifamily construction spending dipped for the month, however, slipping to 1.6 percent—2 percent lower than a year prior.As highlighted by a November 2017 Migration Report published by Redfin.com, residential construction spending has also been driving increased migration to various cities around the country. According to Redfin’s analysis, the top 10 cities with the highest net inflow include San Diego, California; Sacramento, California; Las Vegas, Nevada; Phoenix, Arizona; Atlanta, Georgia; Boston, Massachusetts; Dallas, Texas; Nashville, Tennessee; Tampa, Florida; and Miami, Florida.For anyone looking to learn all the ins and outs of the rental side of the single-family equation, be sure to register for the 2018 Single-Family Rental Summit, happening March 19-21, 2018, at the Renaissance Nashville Hotel in Nashville, Tennessee. The Summit will include discussion panels and training sessions led by top subject matter experts and skilled SFR practitioners, offering viable solutions related to property acquisition and management, financing, strategies for small, mid-cap, and large investors, and new developments related to technology and professional services. Learn all the details and register by clicking here. census construction spending data Construction Spending NAHB National Association of Home Builders residential construction spending single-family construction spending Single-Family Homes single-family housing 2017-12-04 David Wharton The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post December 4, 2017 1,739 Views Subscribelast_img read more

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Royal Bank of Scotland Settles for $500 Million

first_img Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Royal Bank of Scotland Settles for $500 Million 2008 Financial Crisis Eric Schneiderman Financial Crisis Mortgage-Backed Securities New York Attorney General Royal Bank of Scotland Settlement 2018-03-07 David Wharton Previous: Are Homes More Affordable Than We Thought? Next: Could Housing Construction Momentum Take a Hit? Sign up for DS News Daily About Author: David Wharton Share Save Tagged with: 2008 Financial Crisis Eric Schneiderman Financial Crisis Mortgage-Backed Securities New York Attorney General Royal Bank of Scotland Settlement March 7, 2018 1,829 Views Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago New York Attorney General Eric T. Schneiderman this week announced a $500 million settlement between the state and Royal Bank of Scotland. The settlement relates to claims that the bank misled investors over the quality of risky mortgage-backed securities leading up to the 2008 financial crisis.New York and Schneiderman have led the charge in pursuing action against financial institutions they allege have engaged in deceptive practices, securing some $3.7 billion in cash and consumer relief since the financial crisis.In a statement, Attorney General Schneiderman said, “While the financial crisis may be behind us, New Yorkers are still feeling the effects of the housing crash. Home values plummeted. Vacant homes consumed neighborhoods. And for many New Yorkers, affordable housing fell out of reach. Today’s settlement is another important step in our comprehensive effort to help New Yorkers rebuild their lives and communities. I am proud of the extraordinary housing programs these settlements have funded across New York, from Brookhaven to Buffalo—and today’s settlement will fund even more community revitalization initiatives for years to come.”The six-figure settlement includes a $100 million cash payment to the state of New York and $400 million in consumer relief for homeowners and affected communities. The relief efforts will include funds to help promote affordable housing initiatives, as well as funds “dedicated to helping communities transform their code enforcement systems, invest in land banks, and purchase distressed properties to keep them out of the hands of predatory investors.” An independent monitor will be appointed to ensure RBS’ compliance with the terms of the settlement.“We have been very clear that putting our remaining legacy issues behind us is a key part of our strategy,” said RBS CEO Ross McEwan in a media statement. “Settling these issues is a stark reminder of the heavy price we continue to pay for the global ambitions pursued by the bank in the run up to the crisis.”As reported by the Wall Street Journal, RBS has previously reached similar settlements with the Securities and Exchange Commission, the Federal Housing Finance Agency, and states including California and Connecticut. Another settlement may be looming between RBS and the U.S. Justice Department. The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post in Daily Dose, Featured, Government, Headlines, Journal, News Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Royal Bank of Scotland Settles for $500 Million Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

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Hurricane Harvey’s Effect on Flood Insurance Coverage

first_img Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago FEMA Flood Insurance flooding hurricane harvey hurricanes National Flood Insurance Program Natural Disasters nfip 2018-08-01 David Wharton Previous: Wells Fargo Settles Allegations of Fraud for $2.09B Next: The Next Housing Crisis, Plus More From DS News Share Save The Best Markets For Residential Property Investors 2 days ago When Hurricane Harvey hit the Houston area in August 2017, the storm caused $125 billion in damage, damaged 203,000 homes, and destroyed 12,700. To make matters worse, FEMA reported that 80 percent of all households affected by Harvey didn’t have flood insurance to help mitigate the financial impact of the disaster. Moreover, according to a new analysis by the AP, “fewer than one in five properties in high-risk flood zones had coverage.” In the months since, more affected homeowners have secured flood insurance, but will that trend last?FEMA reports that the number of Texas flood insurance policies increased by 18 percent between July 2017 and May 2018. In Harris County, that increase was 23 percent, and Fort Bend County increased by a whopping 54 percent. Houston now stands as the city with the most properties insured against floods, having surpassed the previous record-holder, Miami.However, past events suggest this post-disaster increase is not likely to translate into a long-term trend. AP reports that flood insurance policies in Louisiana jumped by more than 100,000 after Hurricanes Katrina and Rita in 2005, but then began to drop again. “The year after Superstorm Sandy in 2012, flood insurance policies increased by 2 percent in New Jersey and 12.5 percent in New York,” according to the AP. “But since the end of 2013, policies have dropped by 7.4 percent in New Jersey and 8 percent in New York.”Standard homeowners and renters insurance does not typically cover flood damage, and while some lenders require flood insurance for homebuyers, it’s not a requirement for many properties that fall outside of designated flood zones. Unfortunately, being outside of a designated flood zone is no guarantee that a home is safe from flooding, especially when a natural disaster like Harvey is concerned. In fact, FEMA reports that more than 20 percent of flood claims come from properties outside high-risk flood zones. Even so, convincing homeowners to pay the extra expense for flood insurance that isn’t mandatory is no easy task.FEMA has set a goal of trying to double the number of structures covered by flood insurance from 4 million to 8 million by 2022. However, FEMA’s National Flood Insurance Program (NFIP) has more pressing problems that could stand in the way of that longshot goal—funding. This week the Senate voted 86-12 to extend the NFIP until November 30, on the very day it was otherwise set to expire. But a four-month extension doesn’t provide a long-term solution to the flood insurance issue.The NFIP provides flood coverage for more than 22,000 American communities and was originally set to expire last fall. Although the House of Representatives passed a reform bill entitled the 21st Century Flood Reform Act, reform for the program then stalled in the Senate. Since then, the Senate has okayed a series of extensions for the program. Following the devastating effects of Hurricanes Harvey, Irma, Jose, and Maria, the NFIP was—and still is—deeply in debt. Congress has already agreed to forgive $16 billion in debt from the program.“Affordable and readily available flood insurance is vital for the more than 20,000 communities across the United States that depend on the National Flood Insurance Program,” said Rebeca Romero Rainey, President and CEO  of the Independent Community Bankers of America. “A long-term reauthorization of the NFIP is needed to ensure coverage remains available to affected communities and to avoid further disruptions to the market.” Sign up for DS News Daily Hurricane Harvey’s Effect on Flood Insurance Coverage About Author: David Wharton Home / Daily Dose / Hurricane Harvey’s Effect on Flood Insurance Coverage 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 Demand Propels Home Prices Upward 2 days ago August 1, 2018 4,087 Views  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Government, Journal, Loss Mitigation, Market Studies, News Tagged with: FEMA Flood Insurance flooding hurricane harvey hurricanes National Flood Insurance Program Natural Disasters nfip 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 Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Subscribelast_img read more

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FHFA’s Calabria on “Meeting the Mileposts” for GSE Reform

first_img Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / FHFA’s Calabria on “Meeting the Mileposts” for GSE Reform Previous: Delgado & HUD’s Carson Discuss Housing Industry Challenges Next: A New Look at Mortgage Servicing Compensation Fannie Mae FHFA Freddie Mac 2019-04-23 Seth Welborn Federal Housing Finance Agency (FHFA) Director Mark Calabria is aiming for privatization of Fannie Mae and Freddie Mac. In an interview with the Wall Street Journal, Calabria stated that he wants to out 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, “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 addedCalabria stated that he is awaiting completion of plans ordered by President Donald Trump to refashion the mortgage system, set to be completed around June.Among Calabria’s concerns is the “qualified mortgage patch,” which allows more highly leveraged homebuyers to obtain Fannie and Freddie-eligible mortgages. 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.“I can draw Fannie and Freddie a map,” he said. “Fannie and Freddie are going to have to be the ones who meet the mileposts.”During his swearing-in ceremony, Calabria spoke on the GSEs and the FHFA’s ongoing role as conservator and regulator.“FHFA has made tremendous progress since its birth in 2008, a development I’ve continued to watch with great interest from the outside,” Calabria said. “It is my foremost objective to cement those gains. It is all too easy to watch regulatory improvements erode as the memory of the last crisis fades.”According to Calabria, there is “more work to do.”“Markets change and advance, so must we,” he continued. Calabria states that he enters into this new role with a “great sense of urgency.”During the ceremony, Calabria reinforced his plan for reform.“I remain optimistic about America’s housing and mortgage market. But I remain so, because I know together all of us can build a stronger, more secure foundation under that market for all Americans.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 23, 2019 3,044 Views About Author: Seth Welborn  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save 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. Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agocenter_img Subscribe Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago 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 Tagged with: Fannie Mae FHFA Freddie Mac Related Articles FHFA’s Calabria on “Meeting the Mileposts” for GSE Reform Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

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What is Causing the Drop of Rent-Burdened Households

first_img Demand Propels Home Prices Upward 2 days ago  Print This Post 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 March 18, 2020 751 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago rent burden renter 2020-03-18 Mike Albanese Tagged with: rent burden renter Share Save About Author: Krista F. Brock The Week Ahead: Nearing the Forbearance Exit 2 days ago Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. The share of rent-burdened households in the United States has declined over the past decade, albeit modestly. However, it sits just below 50% after the decline. A closer look at the data may reveal a more complex narrative than one might think at first glance.  Between 2000 and 2010, the share of rent-burdened households in the United States grew to more than half, according to Odeta Kushi, Deputy Chief Economist at First American, in a blog post. A household is considered rent-burdened if more than 30% of the household’s income goes to monthly rent, a limit set by the Department of Housing and Urban Development. Having peaked at 53% in 2011, the share of rent-burdened households is down to 49% as of 2018, which is the latest year measured, according to Kushi.“While an improvement, it’s important to note that the share of rent-burdened households remains high at 49%, representing nearly 20 million households,” Kushi stated. Kushi points out that incomes are part of the reason for the decline in the share of rent-burdened households. Incomes for renter households have risen over the last decade by nearly 14%. From 2010 to 2018, renter incomes grew from a median of $35,000 to $40,000. This is a stark contrast to the previous decade, during which renter income dropped 16%. However, this assessment may make things appear a little rosier than they actually are. It would be nice to think that struggling renters received raises and are no longer struggling to pay their rent. However, what we may be seeing instead is evidence of the shifting profile of renters in the United States. The share of higher-income renters is on the rise, according to a recent report from Harvard University’s Joint Center for Housing Studies (JCHS). More than three-quarters of the growth in renter households between 2010 and 2018 was among households earning at least $75,000. In contrast, between 2000 and 2010, 93% of growth was among low-income households. Aside from incomes, Kushi points to a growing supply of rental units as partly to account for the decline in the share of rent-burdened households. Again, at first glance, this sounds like good news. However, a closer look at the data reveals a more complex narrative. The pace of multi-family housing starts has indeed grown in recent years. Between 1995 and 2007, there were about 294,000 multi-family housing starts per month, according to Kushi’s data. Since 2015, the pace has jumped to 370,000. In total, there have been 36 million multi-family housing starts from 2010 to 2018, Kushi pointed out. However, this growth in multi-family housing construction is concentrated at the high end of the market, according to JCHS. Kushi says the growth in housing starts has helped keep rents from outpacing income growth. From 2010 to 2018, rents increased by an average of 7%, rising from an inflation-adjusted $960 to $1,024 per month. This rate is about half the rate of renter household income growth, Kushi pointed out in her blog post. Meanwhile, JCHS stated in its report, “rents have been on a remarkable uptrend.” As evidence that new rental units are concentrated at the high end of the market, JCHS pointed out that the median asking monthly rent for an unfurnished unit constructed between July 2018 and June 2019 was $1,620. This is a 37% rise from 2000. The number of rental units going for under $600 per month fell by 3.1 million between 2012 and 2017, according to JCHS. Despite the fact that the share of rent-burdened households has declined over the past decade, there are millions of more rent-burdened households than there were in 2001, and about 25% of today’s renters spend more than half of their incomes on housing, according to JCHS. center_img Demand Propels Home Prices Upward 2 days ago What is Causing the Drop of Rent-Burdened Households Home / Daily Dose / What is Causing the Drop of Rent-Burdened Households The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Previous: Biden Continues Presidential Primary Lead Next: The Industry Pulse: Mr. Cooper Reports Strong Q4 Numbers Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Subscribelast_img read more

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Could Fears of ‘Foreclosure Tsunami’ Be Unfounded?

first_imgSign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Christina Hughes Babb Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Previous: California to Mortgage Servicers: Remember Duty to Struggling Homeowners Next: How COVID-19 Is Changing the Mortgage Market While more foreclosures may be inevitable, one economist suggests that this recession may be different from what has come before. As COVID-19 swept America, economic activity declined, and the unemployment rate spiked to 14.4 percent in April (and remains elevated today), some pundits predicted that up to 30% of homeowners would require forbearance, ultimately leading to a “foreclosure tsunami,” reported Odeta Kushi for First American.Forbearance, in fact, peaked at 8.6 %, not 30%, and has been steadily falling since, she said. She added that, “forbearance does not equal foreclosure, and focusing on mortgage delinquency rates alone ignores the dual trigger responsible for foreclosure – economic hardship and lack of equity. The rising inability to pay in this crisis is unlikely to lead to large amounts of foreclosure activity because homeowners have more equity than ever before.”A proper prediction of things to come includes understanding foreclosure’s two-step process or “dual trigger hypothesis.First, the homeowner suffers an adverse economic shock—loss of income, serious illness, or the death of a spouse—leading to delinquency. But delinquency doesn’t always result in foreclosure. With sufficient equity, a homeowner has the option of selling or refinancing to tap into equity. The reverse also is true: a homeowner who has low equity but endures no financial setback—thus no delinquency— never faces foreclosure. “Alone, economic hardship and a lack of equity are each necessary, but not sufficient to trigger a foreclosure. It is only when both conditions exist that a foreclosure becomes a likely outcome,” Kushi noted. Her reporting is supported by comparisons to previous recessions. The 2001 recession led to a rise in unemployment without a comparable rise in foreclosure activity. The unemployment rate among homeowners increased from 2.5 % in the second quarter of 2001 to 3.7% in the same quarter the following year. Yet, the average number of new foreclosures barely increased. This was largely because of high household equity, which nationally was nearly 64% in the quarter leading up to the 2001 recession, 12% above the historical average.During the Great Recession, high levels of housing debt combined with declining house prices resulted in a 5.6% decline in household equity between the first quarter of 2008 and second quarter of 2009. Paired with soaring unemployment, which more than doubled for homeowners over the same time period, the dual trigger produced a wave of foreclosures, as foreclosure starts quadrupled compared with their pre-recession pace.This time, it’s different, for two main reasons: First, the housing market is in a much stronger position compared with a decade ago. Accompanied by more rigorous lending standards, the household debt-to-income ratio is at a four-decade low and household equity near a three-decade high. Indeed, thus far, MBA data indicates that the majority of homeowners who took advantage of forbearance programs are either staying current on their mortgage or paying off the loan through a home sale or a refinance.Second, this service sector-driven recession is disproportionately impacting renters. Data from the Census Pulse Survey, averaging across the four weeks of June, show 53% of renter households experienced a loss of employment income, compared with 39% of owner households.“Some foreclosures are still likely to happen,” according to the First American report. “And trends will vary by geography, but this time it’s different – only one of the dual triggers exists today.” August 10, 2020 4,029 Views Share 1Save Tagged with: First American Fooreclosure Forbearance First American Fooreclosure Forbearance 2020-08-10 Christina Hughes Babb Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Could Fears of ‘Foreclosure Tsunami’ Be Unfounded? Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Foreclosure, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Home / Daily Dose / Could Fears of ‘Foreclosure Tsunami’ Be Unfounded? The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Subscribelast_img read more

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The No. 1 Way to Win a Bidding War

first_img The Best Markets For Residential Property Investors 2 days ago March 22, 2021 1,048 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. in Daily Dose, Featured, Market Studies, News Sign up for DS News Daily 2021-03-22 Christina Hughes Babb Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / The No. 1 Way to Win a Bidding War About Author: Christina Hughes Babb  Print This Post As recent data points to an increasing gap between inventory and demand for homes, competition has become intense. Some researchers are looking at strategies homebuying hopefuls and their agents can embrace to better their chances of winning when a bidding war breaks out.One of the best ways to come out on top, found a Redfin study, is to make an all-cash offer, which, researchers say, almost quadruples a prospective buyer’s chances, raising the odds by 290%. Waiving the financing contingency also is an effective strategy,  improving homebuyers’ odds of winning by 66%, according to an analysis of data on thousands of offers written by Redfin agents on behalf of their homebuying clients from July 2020 to February 2021.The study also examined the potential effect of waiving the inspection contingency and including an escalation clause. Although these moves don’t up buyers’ chances of winning a bidding war, that’s likely only because those strategies are so common in a competitive market, Redfin reports.”Many buyers waive the inspection contingency and include an escalation clause when they know a home will receive multiple offers, so neither strategy ups one buyer’s chances over that of a competitor,” noted Redfin data journalist Dana Anderson.Agents for Redfin report that well-priced single-family homes are receiving dozens of offers, and in some areas desirable homes are so competitive that they’re selling for hundreds of thousands of dollars over asking price.“All-cash offers are usually an effective bidding-war strategy, but the market is so hot that even the number-one strategy has evolved this year,” said Orlando Redfin agent Nicole Dege. “All-cash buyers used to be able to go in a little below list price, but now I’m seeing a lot of cash offers that are at list price or higher. Anything below list price, regardless of the terms, just can’t compete.”Rachel Wilson, a Redfin agent in Spokane, WA says it’s important for buyers to sweeten their offer in any way they realistically can.”Sometimes that’s more cash, sometimes it’s waiving contingencies, but other times it’s a matter of figuring out what the seller wants, like a fast close or a provision to allow the sellers to rent the home back for a few months.”The full report is available on Redfin.com. The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The No. 1 Way to Win a Bidding War Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Subscribe Related Articles Previous: Home Flippers Cash in as Market Slides Next: All Eyes on a Post-Pandemic Housing Marketlast_img read more

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