Castro Discusses FY 2016 HUD Budget Before House Committee On Appropriations

first_imgSign up for DS News Daily U.S. Department of Housing and Urban Development Secretary Julián Castro addressed the U.S. House Committee on Appropriations Wednesday on the Fiscal Year 2016 budget proposal for HUD, where he emphasized the commitment from the Obama administration to continue to provide affordable housing for families, seniors, disabled Americans and others in need of resources.The proposed budget calls for a $4 billion increase in funding, pushing the overall funding budget to $49.3 billion.According to Castro, $21 million of the increased budget will be used for the Housing Choice Voucher Program, which would offer support to more than 2.4 million low-income families. The budget also plans to help 67,000 households by fulfilling the promise to restore vouchers lost to sequestration.”This support is critically needed.  We recently released the findings of our nation’s 2015 ‘Worst Case Housing Needs’ Report to Congress,’ he said. “It found that 7.7 million low-income households that receive no housing assistance pay more than 50 percent of their income in rent, live in severely inadequate housing, or both.”Castro emphasized the push to lift more Americans into the middle class through programs that can provide links to upward mobility in the mission to end chronic homelessness and work to end homelessness among families and youth. A proposed $2.5 billion would fund Homeless Assistance Grants, which help combat homelessness by providing communities with housing and service investments.”With Congress’ support through programs like HUD-VASH, we have seen dramatic reductions in homelessness among veterans.  If our nation invests in the targeted programs we know work, we can make similar progress in tackling other forms of homelessness,” Castro said.HUD plans to use $100 million to fund Jobs Plus, a program designed to help low-income families living in HUD-subsidized housing to build careers. Another $85 million will be invested into HUD’s Family Self Sufficiency Initiative, which equips about 80,000 families with financial literary training and childcare and transportation services.Castro asked for the support of Congress to eliminate the Rental Discrimination Cap, saying it would “put billions of dollars in private financing for public housing preservation and create thousands of jobs in the construction trades and other industries.”Castro closed his testimony by citing the $250 million proposed in the budget for HUD’s Choice Neighborhoods Initiative, a program that has he said has shown impressive success. Between fiscal years 2010 and 2013, the $351 million that HUD invested in these grants leveraged more than $2.6 billion of additional investment in extremely low-income communities.”As HUD commemorates 50 years of advancing policies that create opportunity for all,” he said. “We’re also creating a solid foundation for the next 50 years and beyond.” The Best Markets For Residential Property Investors 2 days ago Tagged with: House Committee on Appropriations HUD Julian Castro Demand Propels Home Prices Upward 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles February 25, 2015 1,032 Views Previous: Survey: Delinquency, Foreclosure Inventory Rates Fall to Lowest Levels Since 2007 Next: Morgan Stanley Agrees to Pay $2.6 Billion to Resolve RBMS Claims Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News The Best Markets For Residential Property Investors 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. center_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Castro Discusses FY 2016 HUD Budget Before House Committee On Appropriations House Committee on Appropriations HUD Julian Castro 2015-02-25 Brian Honea About Author: Brian Honea The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Castro Discusses FY 2016 HUD Budget Before House Committee On Appropriations Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Foreclosure Prevention Efforts Hit Milestone

first_imgSubscribe Share Save Demand Propels Home Prices Upward 2 days ago  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Foreclosure Prevention Efforts Hit Milestone Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Foreclosure Prevention Efforts Hit Milestone About Author: Scott Morgan Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He’s been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Foreclosure Prevention HOPE NOW Loss Mitigation Non-foreclosure solutions 2016-06-22 Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago The mortgage services industry reached its 25 millionth non-foreclosure solution in April, as foreclosure, short sales, and deed-in-lieu transactions continue to drop, according to HOPE NOW, a voluntary, private-sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors.According to HOPE NOW’s report on April numbers, total non-foreclosure solutions (the combination of total loan modifications, short sales, deeds-in-lieu, and workout plans) were approximately 117,000. This compares to approximately 28,000 foreclosure sales for the month.Included in that total solutions figure were an estimated 31,000 permanent loan modifications. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP).There were roughly 50,000 foreclosure starts and 28,000 foreclosure sales in April, down 16 percent and 6 percent, respectively from March. Deed-in-lieu transactions decreased by 18 percent, to approximately 1,700. Short sales also dropped by 15 percent, with 6,300 completed in March. Overall, there were 31,000 loan modifications in April, down 4 percent from March, the report stated.“Our data indicates that early intervention is assisting with market recovery, as serious delinquency numbers continue to decline.”Eric Selk, Executive Director, HOPE NOWOf the permanent loan modifications completed in the month of April, an estimated 22,000 were through proprietary programs and 8,563 were completed via HAMP. Permanent loan modifications continue to outpace foreclosure sales, the agency reported.Since 2007, HOPE NOW has tracked 6.2 million proprietary modifications, 2.4 million HAMP trial modifications, and 1.6 permanent HAMP modifications. The largest segment, however, was non-HAMP modification and repayment programs, which totaled 14.8 million since 2007.“HOPE NOW is extremely pleased to see the hard work of our member mortgage servicers and housing counseling partners,” said executive director Eric Selk of the 25 million total solutions. “These solutions, whether they are modifications, repayment plans, or short sales, all help homeowners avoid foreclosure. It is a significant milestone.”Selk also said that early intervention and continuing efforts are critical to keeping homeowners from becoming severely delinquent.  “Our data indicates that early intervention is assisting with market recovery, as serious delinquency numbers continue to decline,” Selk said. June 22, 2016 1,800 Views Demand Propels Home Prices Upward 2 days ago Previous: Legal League 100 Leadership Convenes to Discuss Strategy Shift Next: CFPB: Servicers are Using Failed Technology in Daily Dose, Featured, Loss Mitigation, News Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Related Articles Tagged with: Foreclosure Prevention HOPE NOW Loss Mitigation Non-foreclosure solutionslast_img read more

Carson Speaks: Clarifies State of Mind Comments

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Carson Speaks: Clarifies State of Mind Comments Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Secretary of Housing and Urban Development (HUD) Ben Carson, in an interview with NPR published in full on Monday, has attempted to clarify last month’s controversial comment that “poverty is a state of mind.” Carson has received extensive criticism from housing advocates and the media for his comment in what has been deemed insensitive in light of proposed budget cuts to the Secretary’s department. Carson defended his position by stating that while he did say that the way a person thinks is a factor in getting out of poverty, he did not say it was the only factor, or that simply wishing away poverty was enough to get a person out of it. “A good example would be,” Carson said, “if you were a minor league baseball player, and you were brought up to the majors and you look up on the mound and you say, ‘Nolan Ryan! Oh no, he’s a legend. He’s got a 100 mile per hour fastball. I’ll probably not even see the ball.’ You’re probably not going to get a hit. If you come up and say, ‘Nolan Ryan. He’s an old man. I’m going to knock the cover off the ball,’ you are probably going to have a much better chance.”So it goes with poverty too, Carson believes. If one sees themselves as a victim of their situation, they are much less likely to overcome it. Education for long term goals, establishing community centers through the re-appropriation of old buildings, childcare, breaking cycles, should be the HUD’s mission, not merely putting a roof over someone’s head. “A lot of times if you go to a disadvantaged neighborhood, you ask the kids, “What do you want to do when you grow up?” You get about five different answers. But there’s a thousand. We need to show people the other 995 and how you get there. And those are the kinds of things that create that can-do attitude that is so important, and that for such a long time was a part of the American mindset.”When pressed with the criticism that many people would be “thrown out on the street” and that homelessness will rise due to HUD’s proposed budget cuts, Carson maintained his position that wouldn’t be the case. “We’re paying very close attention to the vulnerable population and making that a very important part of how things are executed,” he said, even though he was unable to offer specific details of what would replace cut programs, which include public housing programs, housing vouchers, and community development block grants totaling more than $6 billion, or 13 percent.   Print This Post in Daily Dose, Featured, Government, Headlines, News Related Articles Share Save Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Tagged with: Ben Carson Carson NPR Ben Carson Carson NPR 2017-06-05 Staff Writer Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: BlackRock Seeks $3B in Damages from HSBC Next: CFPB Gets a Win in Ocwen Case Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago June 5, 2017 1,496 Views Home / Daily Dose / Carson Speaks: Clarifies State of Mind Comments About Author: Staff Writerlast_img read more

Homeowners and Buyers More in Sync

first_img Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Home / Daily Dose / Homeowners and Buyers More in Sync Subscribe Tagged with: Home Prices Home Search Homebuyers Homeowners Homes HOUSING Listing premium homes Price Mismatch sellers Starter Homes Trade-up Homes Trulia Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago May 21, 2018 1,924 Views Share Save Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Home Prices Home Search Homebuyers Homeowners Homes HOUSING Listing premium homes Price Mismatch sellers Starter Homes Trade-up Homes Trulia 2018-05-21 Radhika Ojha Demand Propels Home Prices Upward 2 days agocenter_img Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Homeowners and Buyers More in Sync Servicers Navigate the Post-Pandemic World 2 days ago Homebuyers and sellers are moving moving closer together on home prices for the first time in two years according to a study by Trulia, which found that the measure of the price gap between search interest and available listings remained flat from a year ago, but had dropped by 15 percent from 11.1 to 13.1 in the last quarter.This is the first such drop since prior to the start of 2016. “In other words, more homebuyers are searching at price points where listings are more common,” the Trulia study said.To evaluate the market mismatch, Trulia calculated the measure of the difference between the price points where searches occurred and price points of listed properties on a scale of 0 to 100 with zero being perfectly matched and 100 being completely mismatched. During the first quarter of 2018, Trulia found that the housing market mismatch score remained well above the 7.5 scored in the first quarter of 2016. During the same quarter-over-quarter period a year ago, the mismatch score grew 14.2 percent, the study found. It also revealed that 55 of the 100 largest metros saw their mismatch rates fall since the last quarter and 51 had fallen since the same quarter a year ago.According to the study, nationally, the mismatch gap shrunk to 11.1 from 13.1 last quarter as the share of searches for starter homes also declined to 28.7 percent from 31.1 percent. However, despite this shrinking gap, the study said that what looked like relief for homebuyers looking at starter homes might just be a sign of shoppers giving up. “Recent changes are driven by search activity growing more slowly for starter homes than for trade-up and premium homes,” the study found.It also found that premium home searches made up 41.4 percent of all searches and comprised 52.5 percent of listings, while San Francisco and Philadelphia saw the biggest improvement for starter home shoppers from the last quarter. This piece of information is particularly heartening for millennial homebuyers in San Francisco and Philadelphia, who make up one of the largest chunks of the homebuyer markets in these two cities according to Trulia.When it came to listings for premium homes, the study found that Austin and Boston topped the charts in this category even as searches were chasing short supply in the starter and trade-up home categories in these cities.In turn, sellers were feeling the recent shift in their favor in Ventura County, California; Austin, and Buffalo, New York, the study found. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Radhika Ojha Previous: The Most Prosperous City in America Is … Next: Sen. Schumer Calls for Flood Insurance Reform in Daily Dose, Featured, Market Studies, News Demand Propels Home Prices Upward 2 days agolast_img read more

As Summer Heat Rises, So Do REO Sales

first_imgHome / Daily Dose / As Summer Heat Rises, So Do REO Sales The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Editor’s Note: This feature originally appeared in the July issue of DS News, out now.For many people, summer evokes thoughts of long days and vacations, but for REO managers and servicers, the summer months are the prime selling season. You’ve heard the adage that warm weather creates a “buying season” for real estate, as families are eager to buy or relocate when school is out. In fact, according to the National Association of Realtors’ 2017 statistics, the months of May through August represented the highest real estate sales volumes of the year. An eye-popping 40 percent of existing home sales for 2017 occurred during this period.Because inventories are expected to remain at historic lows, and demand remains strong, the summer of 2018 may come to be known as the “extended summer.” The traditional high-volume sales season could easily extend to a 10-month window running from March through December. Bye-bye to the old selling summer months, hello extended summer!Early 2018 data from the National Association of Realtors is pointing to a strong seller’s market with inventory down by 7.2 percent over the previous year, supply numbers near 20-year lows, and median sales prices up by 5.8 percent to just over $250,000. In addition, activity from first-time homebuyers continues, representing 30 percent of existing home sales.As we look ahead to the extended selling season, expect to continue to see inventory, especially at lower price points, remain competitively constricted. This tight housing market leads homebuyers to move quickly on available properties and creates an opportunity for REO managers and servicers to sell their inventory in a shorter time frame. This demand for properties makes it essential that REO managers quickly convert assets to be sales-ready. The ability to effectively turn over a property will position REO asset managers for success.Preparing your Summer ChecklistSo, during an extended summer, where should REO managers focus their efforts? Below is an essential checklist for all servicers and REO managers to efficiently make assets sale-ready. By focusing on these critical solutions, assets will be well-positioned to compete for a quick sale.» Schedule repairs. Review the property closely for essential repairs and schedule estimates for all repairs that require a contractor. Over time, building a relationship with a reliable and trustworthy contractor who can address repairs quickly will save you time and get REO assets on the market more efficiently. If the property has outbuildings, remember to inspect them to ensure they are in good condition and are not a liability for the asset. » System check. After taking over management of a new property, inspect all systems to ensure they are operating correctly. Check for proper airflow, that the hot and cold water is flowing from every tap and drains are clear, and that all heating and cooling systems are working correctly. In humid areas, having a working air conditioner, dehumidifier, or fan system with strong airflow to help prevent wall sweating and mold is essential. When checking the air systems, it is also a great time to replace air filters. While you are in the basement, be sure that any existing sump pumps are operating correctly and that the area remains dry. Homebuyers are often leery of water stains so be sure to check skylights for condensation and proper insulation.» Make it appealing. First impressions matter and curb appeal plays a vital role in forming the potential buyer’s opinion of a property. A 2016 report from the National Association of Realtors points to lawn care as the No. 1 project that appeals to buyers. Impressively, basic lawn care also has an estimated return on investment of 303 percent when selling a home. How the property looks from the outside impacts perceptions of the value of the property. That said most lawns shouldn’t require expensive investments. With dry conditions in much of the country, it may be essential to plan extra watering sessions for the yard to keep it green and inviting through the late summer months. Inspect the external areas of the property, picking up debris, trimming low branches and pulling weeds, and taking note of and repairing any damage. Now is also the time to properly secure the yard, get the pool swim-ready, schedule additional lawn services, and clear gutters and downspouts, ensuring they are draining properly and distributing water away from the property.» Clean up. Nearly every REO property requires significant cleaning; so don’t let this item fall off your checklist. It’s hard for buyers—especially first time buyers—to look past cosmetics and see the potential in a property. If the property is dirty, potential buyers will have a hard time imagining themselves in the home. Give the property a thorough cleaning inside and out. Remove any debris, treat carpet stains, clean windows, and give the entire property a deep clean. While the cleaning crew is going room to room, have them make sure that every fixture has proper lighting to show off the newly cleaned rooms.» Cook up a sale. It is essential for REO managers to give the kitchen a little extra attention. The kitchen is the center of most homes and the area where significant value can be added. First, ensure all appliances are in working condition and remove those that are not working or can’t be quickly repaired. You don’t have to upgrade a kitchen for it to be ready for sale, but it should be cleaned from top to bottom. Thoroughly clean everything, including removing all debris, defrosting the refrigerator and turning it to the warmest setting, cleaning all appliances inside and outside, and vacuuming out all drawers.» Inspect for insects. No one wants their future home to come with unwanted guests. Properties that sit empty over the winter months, or that fall into disrepair, are prime candidates for pest issues. Give the property a thorough inspection for any existing insect or rodent issues. Address any existing issues and check for new entry points for bugs, rodents or other wildlife. Address identified entry points immediately. Depending on the property and the location, it may be necessary to schedule regular exterminator appointments to keep the house pest free while it is waiting for a buyer.» Show off. You’ve done the work, and now it’s time to show it off! Take quality photos of the property and write a thorough and inviting description to accompany the listing. While great images can be taken with a cell phone these days, if you are not a strong photographer, this may be a valuable opportunity to bring in some additional help. Homebuyers are relying on the internet to get a preview of the property. Having great photography that displays a home’s strongest assets will help to bring potential buyers out for a showing. Once those potential buyers are on-site, your hard work to prepare the property will pay off.As an REO manager, it’s essential to take advantage of this favorable market and differentiate yourself from competitors by positioning your properties for a quick sale. Small fixes can make a big difference, so it’s essential to view a property through the buyer’s eyes. The best way to consistently deliver for your clients is to be systematic in your approach, thorough in your execution and selective with where you choose to invest money. The metaphorical extended summer won’t last, as the industry will one day find equilibrium with both supply and demand. But until that time, by following this checklist, REO managers will remain optimally prepared for the long selling season. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Asset Homes Housing Market Inventory Managers Price Points Properties REO sale Servicers Andrew Oliverson is currently the SVP, REO Sales at Green River Capital, a Radian company. He joined Green River Capital in 2005 after working several years in collections, loss mitigation, commercial asset management, and mortgage origination. He received a bachelor’s degree in economics at the University of Utah and currently holds an active Utah broker’s license. Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Legal League 100 Fall Summit—Sneak Preview Next: The Lingering Impact of Hurricane Maria on Puerto Rico in Daily Dose, Featured, Print Features Demand Propels Home Prices Upward 2 days agocenter_img Sign up for DS News Daily July 4, 2018 3,683 Views Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago As Summer Heat Rises, So Do REO Sales Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Asset Homes Housing Market Inventory Managers Price Points Properties REO sale Servicers 2018-07-04 Andrew Oliverson About Author: Andrew Oliverson Share Savelast_img read more

Southern States Dominating Non-Current Loan Volumes

first_img January 22, 2020 1,650 Views  Print This Post Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: default Foreclosure loans Southern states including Mississippi, Louisiana, Alabama, and Arkansas held some of the largest volumes of non-current loans in the country. As of December 2019, Mississippi holds the highest volume at 9.99%, though this is a month-over-month decline from November’s 10.44%, and a 0.93% decline year-over-year, according to Black Knight’s First Look at December 2019 data.All top five states in non-current percentages have seen marked declines over the year, with the biggest decline in Louisiana, where the non-current percentage fell by 6.81% from December 2018.The lowest non-current percentages, meanwhile, remain concentrated on and around the East Coast, with Colorado still holding the lowest rate at 1.74%, down from November’s rate of 1.81%. Behind Colorado falls Washington (1.77%), Oregon (1.84%), Idaho (1.91%), and California (2.01%).As non-current loans have fallen across the country, default notices, scheduled auctions and bank repossessions as foreclosure filings fell too. According to the Year-End 2019 U.S. Foreclosure Market Report from ATTOM Data Solutions, foreclosure actions were down 21% from 2018 and down 83% from a peak of nearly 2.9 million in 2010.Repossessions dropped as well in 2019, down 37% from 2018 to 143,955 total properties.“The continued decline in distressed properties is one of many signs pointing to a much-improved housing market compared to the bad old days of the Great Recession,” said Todd Teta, Chief Product Officer for ATTOM Data Solutions. “That said, there is some reason for concern about the potential for a change in the wrong direction, given that residential foreclosure starts increased in about a third of the nation’s metro housing markets in 2019. Nationally, the number also ticked up a bit in December. While that’s not a major worry, it’s something that should be watched closely in 2020.”Black Knight also noted that repayment activity ticked upward at the end of 2019, indicating a “flattening effect on refinance activity.” After falling by 19% in November, prepayment rates increased in December, and Black Knight suggests that the recent leveling off of interest rates has had a flattening effect, but prepayments are still up 126% from this time last year.Black Knight will release its complete December 2019 Mortgage Monitor report on on Monday, February 3. The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Southern States Dominating Non-Current Loan Volumes The Best Markets For Residential Property Investors 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. Servicers Navigate the Post-Pandemic World 2 days ago Share Savecenter_img Subscribe Demand Propels Home Prices Upward 2 days ago About Author: Seth Welborn The Best Markets For Residential Property Investors 2 days ago default Foreclosure loans 2020-01-22 Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Empire State Tax Changes Pose Difficulties for Residential Investors Next: Radian Announces Sale of Clayton Services to Covius in Daily Dose, Featured, Foreclosure, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Home / Daily Dose / Southern States Dominating Non-Current Loan Volumeslast_img read more

Wells Fargo, JPMorgan’s Revenues Drop

first_img About Author: Mike Albanese Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Wells Fargo, JPMorgan’s Revenues Drop Subscribe Related Articles in Daily Dose, Featured, Market Studies, News Banking JPMorgan Chase Wells Fargo 2020-04-14 Mike Albanese Share Save Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Previous: One-Third of Americans Burdened by Housing Costs Next: A Snapshot of Mortgage Forbearance Trends Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Demand Propels Home Prices Upward 2 days ago Tagged with: Banking JPMorgan Chase Wells Fargocenter_img Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The spread of COVID-19 was visible on both the balance sheet for JPMorgan Chase and Wells Fargo, with the banking giants announcing revenue declines in Q1 2020. Wells Fargo reported revenue during the quarter of $17.7 billion—down from $21.6 billion during Q1 2019. The bank also built a reserve of $3.1 billion. Wells Fargo CEO Charlie Scharf said in a release, “Wells Fargo plays an important role in the financial system and the economic strength of our country, and we take our responsibility seriously, particularly in these unprecedented times.”CFO John Shrewsberry said the $3.1 billion in reserves reflects the “expected impact these unprecedented times could have on our customers.” The bank also reported a 46% annual drop in noninterest income form mortgage banking, falling from $708 million in Q1 2019 to $379 million in Q1 2020. JPMorgan announced a net income was $2.9 billion, which is down 69% year-over-year. Quarter-to-quarter, net revenue was down 3% to $29.1 billion. The bank also announced it built-in reserves of $6.8 billion. “The first quarter delivered some unprecedented challenges and required us to focus on what we as a bank could do—outside of our ordinary course of business—to remain strong, resilient, and well-positioned to support all of our stakeholders,” said Jamie Dimon, Chairman and CEO of JPMorgan. Home lending for JPMorgan was $1.2 billion for the quarter, which is down 14% annually. The bank said this is due to lower net servicing revenue and lower net interest income on lower balances. The spread of COVID-19 has impacted almost every sector of the economy and housing has not been immune. One of the hardest-hit areas has been the servicers, as forbearance programs are causing a liquidity shortage for mortgage servicers. In an effort to assist servicers, Ginnie Mae announced an All Participants Memorandum (APM) on, expanding its servicer assistance program in response to the spread of COVID-19. The APM introduces a new version of the existing Pass-Through Assistance Program (PTAP) for servicers facing a temporary liquidity shortfall related to coronavirus.  April 14, 2020 2,355 Views  Print This Post Home / Daily Dose / Wells Fargo, JPMorgan’s Revenues Drop Data Provider Black Knight to Acquire Top of Mind 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 The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

COVID-19 Widening the Housing Gap

first_img Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.  Print This Post COVID-19 Widening the Housing Gap June 2, 2020 1,264 Views Previous: ‘Far Too Early’ to Know Impact of GSE Framework Next: Florida Governor Extends Foreclosure Moratorium Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save Tagged with: Affordability HOUSING Subscribe Affordability HOUSING 2020-06-02 Seth Welborn The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articlescenter_img About Author: Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Inequality in the housing market is likely to be amplified following the COVID-19 crisis, according to a study from the Urban Institute. Researchers indicated that prices for low-priced homes have appreciated faster than higher-priced homes.As low-price home prices rise, would-be homebuyers with low incomes have trouble finding affordable homes, so they remain in the rental market, drive up rents, and increase the demand for and price of rental properties, Urban notes. As a result, the cost for both owning and renting has gone up substantially for low-income households, while their income growth has not kept pace with that of high-income households.“A closer look at 285 metropolitan statistical areas (MSAs) suggests that rapid employment growth combined with increased supply constraints from zoning and other regulations contributed to this disproportionate price growth for low-price homes,” said Urban researchers. “If left unaddressed, these same supply constraints will hamper the ability of low-income households to prosper as we emerge from the crisis and will exacerbate income inequality.”Despite labor market upheaval, home prices have remained relatively steady throughout the COVID-19 pandemic. Even with rising unemployment, many lenders have tightened credit to avoid taking greater risks that may further strain their financial capacity.Additionally, a greater share of low-income homeowners and renters are working in industries that are more vulnerable to the COVID-19 shock. Therefore, low-income homeowners may struggle more to sustain homeownership once the forbearance period is over, and many low-income renters are likely to lose the financial ability to become homeowners. At the same time, the home price trajectory is unlikely to change, as all households, both owners and renters, need a place to live.According to Urban, if the supply constraints that existed before the pandemic remain unaddressed, both low-price home and rental prices will continue to increase faster than prices for high-price homes, widening residual income inequality between low- and high-income homeowner and renter households. This could also hurt the ability of low-income households to build financial strength and could make them more vulnerable to future economic shocks. Data Provider Black Knight to Acquire Top of Mind 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 Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Investment, News Home / Daily Dose / COVID-19 Widening the Housing Gap Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more

The Road to Mortgage Industry Innovation

first_img The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / The Road to Mortgage Industry Innovation Subscribe in Daily Dose, Featured, News Previous: Real Estate Investment Loans Pose Higher Fraud Risk Next: Remembering FDIC’s First Chief Economist Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Michael F. Sullivan  Editor’s note: This story originally appeared in the November edition of DSNews, out now. The COVID-19 pandemic will likely be a cross-roads and accelerator to the long-term future for many industries. In the last few years, we started to check into hotel rooms with our phone without having to stop at the front desk. Restaurants provided modules to help customers pay without handing their credit cards to the waitress. Minimizing personal contact has likely become a trend which will accelerate innovation more than we can imagine.   In our own industry, we have had electronic access to necessary loan information for decades. Innovations in our industry have come from many different areas: property preservation companies, technology firms, law firms, title companies, collection agencies, claim filers, and auction companies, as well as banks and non-bank servicers. Innovations came as we integrated information among disparate systems, providing data and documents to facilitate the process. How the Industry Innovates Invoice processing technology is a great example which changed our world in the last quarter century. Logical milestones resulted in automation to a process which, 25 years ago, was littered with multiple requests for payment, stacks and stacks of paper, duplicate payments, supplemental claims, inevitable claim-filing errors, and extrapolations of audit findings. Much of that has been cured by the invoice processing solutions of 20 years ago. Similarly, property preservation and inspection companies put technology in the field years ago that eliminated phones having to be connected to paper reports. Problematic issues at a property and necessary work for conveyance or to cure a violation are bid virtually in real time and returned to the servicer immediately. Technology has provided us with an amazing ability to communicate to borrowers through web portals, emails, text, and form letters, and allowed borrowers to be able to navigate through voice attendants and receive answers via phone or online in order to understand what is happening with their accounts.  This includes up-to-the-minute information regarding how payments were applied, tax, and insurance information.  Incredible strides have been made in the transfer of data and documents between loan servicers and their related service providers. Attorneys serving the mortgage industry have similarly established these protocols with their clients, title companies, process servers, auction companies, and, most importantly, with the courts. The process is now paperless, allowing for enormous amounts of information to be processed and transmitted.    The pandemic further accelerated this process, albeit with some twists. Within weeks, we all learned how to work at home and overcome whatever fears and obstacles remained regarding information security. We determined how to put borrowers into forbearance plans without them having to talk to an agent or provide financial information. This was aided by the Cares Act, which facilitated the little or no documentation approach to these issues and allowed servicers to provide service to borrowers impacted by the pandemic. What’s Next? In a world where cars are driving themselves and algorithms drive everything from stock trading to where baseball teams position their infielders (I’m not a big fan of the shift), a logical answer is the continued innovations afforded to us by machine learning (ML) and artificial intelligence (AI).   Servicers are striving to determine what factors cause servicing errors. Attorneys and other vendors are as well. Everyone is trying to understand the dynamics of scaling up after scaling down in an uncertain world. Some of the factors contributing to errors we can list easily (service transfers, copied and scanned and imperfect documents, loan history that indicates a possible payment anomaly). The industry has access to hundreds of data fields and documents that may hold answers to questions and possible process improvements. It’s just a matter of time before we determine that some aspect of the servicing transfer or keywords in borrower communication identify opportunities for the same kind of lift and improvement that the industry received from invoice automation. That timeline may well be accelerated through the utilization of AI to assist in identifying anomalies that have resulted in previous losses. Bob Caruso, CEO of ServiceMac, has been a leading innovator in the mortgage servicing industry for more than 30 years. Caruso shared that his team has built a proprietary quality assurance software that incorporates the database, rules, and workflow which will ultimately be the foundation for ServiceMac to effectively leverage AI in the future.   “Artificial Intelligence has reshaped how we uncover data issues that contribute to compliance risk and borrower dissatisfaction,” said Gagan Sharma, President and CEO of BSI Financial Services and Founder of Bizzy Labs, a regtech company that employs artificial intelligence in its Libretto engine. “Using AI, we can scour loan files for data exceptions more thoroughly and frequently, helping servicers identify issues on their portfolio. This big data approach to perfecting loan data files and pools will disrupt traditional servicing business models by elevating the user experience for lenders, investors, and borrowers.” One of the biggest areas of concern for attorneys is the Personally Identifiable Information (PII) that is regularly contained in the documents which are attached to complaints, proofs of claims, judgments, and other documents. Redacting this information from documents is a time-consuming, tedious, monotonous, and imperfect process. Some of the technology provided to assist with the process is imperfect, allowing boxes to be moved unless a document has been appropriately flattened, or even reprinted and copied. Firms across the country have been engaged in projects to assist with painful after-the-fact fixes to cure the situation, including court hearings, notification of the consumer, and possible sanctions and financial penalties for the servicer and attorney. With OCR and ML technology, however, the opportunity exists for document redaction, which is manual and imperfect, to be much more consistently correct and significantly less costly.   After the Moratoria Lapse …Continue reading on p. 61 of the November issue of DS News, available here.  Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago The Road to Mortgage Industry Innovation Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Related Articles Michael manages client relations and business development for the Codilis Family of Firms, serving the industry in Illinois, Indiana, Missouri, Texas, and Wisconsin. Sullivan has also served in several leadership roles in related entities, LCS Financial, Moss Codilis, Default Servicing Solutions, and Claims Recovery Financial Services providing services ranging from loss mitigation to bankruptcy to mortgage insurance claims. Prior to Codilis, Sullivan managed loss mitigation for Norwest Mortgage, foreclosure and bankruptcy for Prudential Home Mortgage, and REO at First Nationwide Bank and Community Federal Savings and Loan dating back to the Saving and Loan Crisis. Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago November 12, 2020 926 Views Servicers Navigate the Post-Pandemic World 2 days ago 2020-11-12 Christina Hughes Babblast_img read more

Forbearance Activity Dips Below 2.6M—a First Since April

first_img The Best Markets For Residential Property Investors 2 days ago  Print This Post Sign up for DS News Daily 2021-03-19 Christina Hughes Babb Home / Daily Dose / Forbearance Activity Dips Below 2.6M—a First Since April Previous: The Recession’s Effect on Black and Latinx Homeowners Next: Home Flippers Cash in as Market Slides in Daily Dose, Featured, Loss Mitigation, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago Forbearance activity dropped below 2.6 million for the first time since last April, according to the latest report from Black Knight’s McDash Flash Forbearance Tracker.After the previous week’s largest weekly decline since early in January, the number of active forbearance plans fell again this week, Black Knight said in its report. Active plans fell by another 16,000 from the previous Tuesday as servicers continue to work through the large volume of scheduled end-of-month expirations.Of the 1.2 million homeowners in forbearance whose plans were scheduled to expire at the end of this month, some 620,000 March-end expirations remain.As of Tuesday (March 16) 2.59 million homeowners remain in forbearance, representing 4.9% of all homeowners with mortgages.Say the researchers at Black Knight, “this week’s declines were driven by improvements among both GSE/(Fannie and Freddie) (-13,000) and FHA/VA plans (-8,000), while active plan volumes rose among portfolio-held/PLS mortgages.””Early extension activity suggests servicers continue to approach forbearance plans in three-month increments, with the bulk of would-be March expirations being extended out through June,” they noted.The Federal Housing Finance Agency (FHFA) recently announced extensions of several measures that the agency says will align COVID-19 mortgage relief policies across the federal government. This announcement, which extends temporary measures (previously set to expire March 31) until the end of June follows the White House’s February 16 moratoria extension applied to all federally backed mortgages through the same period.Said measures include provisions for borrowers with Fannie Mae or Freddie Mac-backed mortgages who may be eligible for an additional three-month extension of COVID-19 forbearance, according to a press release. This additional three-month extension allows borrowers to be in forbearance for up to 18 months.”With 620,000 plans still listed with March month-end expirations, we’ll be watching the numbers closely over the next few weeks as servicers continue to review upcoming expirations for removal or extension based on recently revised HUD and FHFAs allowable terms of up to 18 months for early forbearance entrants,” Black Knight reported. “Extension/removal activity is worth keeping a close eye on through the final two weeks of the month and into early April, as these next weeks will be very telling re: what to expect in coming months.” Demand Propels Home Prices Upward 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. The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Christina Hughes Babb Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Forbearance Activity Dips Below 2.6M—a First Since April The Best Markets For Residential Property Investors 2 days ago 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 Share Save Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago March 19, 2021 1,307 Views last_img read more