Morgan Stanley Announces $1.25B Settlement with FHFA

first_img February 5, 2014 746 Views Tagged with: Fannie Mae FHFA Freddie Mac MBS Morgan Stanley Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Fannie Mae FHFA Freddie Mac MBS Morgan Stanley 2014-02-05 Tory Barringer Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Home / Daily Dose / Morgan Stanley Announces $1.25B Settlement with FHFA Morgan Stanley is the latest company to make peace with the Federal Housing Finance Agency (FHFA) over alleged misrepresentation of bad securities sold to Fannie Mae and Freddie Mac.In a filing with the Securities and Exchange Commission (SEC) Tuesday, Morgan Stanley revealed it has reached a $1.25 billion agreement in principle with FHFA to resolve pending mortgage-backed securities (MBS)-related litigation. In connection with the settlement, the company announced it is recording a $150 million addition to its fourth-quarter legal reserves.The agreement remains subject to final approvals by both parties.FHFA did not release a statement on the settlement, though a public affairs officer confirmed the language in the SEC filing.Morgan Stanley is the eighth bank to settle with FHFA out of 18 named in a legal complaint filed in 2011 on behalf of the GSEs. The banks were accused of making untrue statements and “material omissions” in MBS sales, resulting in disastrous losses at Fannie Mae and Freddie Mac.Last year, the agency recovered approximately $8 billion in settlements related to that filing, with JPMorgan Chase, UBS Americas, Citigroup, and Ally Financial—among others—all striking deals to wipe the slate clean. Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Government, Headlines, News, Secondary Market The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Previous: DS News Webcast: Wednesday 2/5/2014 Next: Long Island Ranked Nation’s Hottest Market, Florida Metros Struggle The Best Markets For Residential Property Investors 2 days ago Morgan Stanley Announces $1.25B Settlement with FHFA Demand Propels Home Prices Upward 2 days ago  Print This Post Related Articleslast_img read more

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Suntrust Settles HAMP Investigation

first_img  Print This Post in Featured, Government, Headlines, News Derek Templeton is an attorney based in Dallas, Texas. He practices in the areas of real estate, financial services, and general corporate transactional law. His experience includes time as an Attorney Adviser for the U.S. Small Business Administration and as General Counsel for a nonprofit organization in Dallas. A self-avowed “policy junkie,” he has a keen interest in the effect that evolving federal policy has on the mortgage, default servicing, and greater housing industries. The Best Markets For Residential Property Investors 2 days ago July 3, 2014 830 Views In a filing with the SEC, Suntrust Banks, Inc. announced Thursday afternoon that it would pay up to $320 million to halt a criminal investigation into whether it had dealt inappropriately with homeowners who were looking to take advantage of the Home Affordable Modification Program (HAMP).Several government agencies had been investigating SunTrust in connection with complaints that it misled homeowners who sought mortgage relief from SunTrust through HAMP and failed to timely process HAMP applications.”Resolving this legacy matter enhances our ability to focus on the future and support the continued housing recovery,” said Jerome Lienhard, SunTrust Mortgage, Inc. President and Chief Executive Officer.  “We recognize that there were deficiencies in our administration of HAMP during the recession, and through the improvements we have made to our internal processes and this restitution plan, we are demonstrating our commitment to meet the high standards that we set for ourselves and that our customers expect.”Under the terms of the agreement, Suntrust agreed to pay a minimum of $179 million in consumer remediation, a number that could inflate to $274 million as necessary. Additionally, the company will pay $20 million to fund housing counseling, $10 million in remediation to Fannie Mae and Freddie Mac, and 16 million to the Treasury Department.The agreement marks another enforcement victory for the government as they continue to resolve complaints related to the company’s dealings. Last month the Bank agreed to pay nearly one billion dollars to resolve complaints about actions that the government termed “systemic mortgage servicing misconduct,” including failing to promptly and accurately apply borrower payments, robo-signing, and other illegal foreclosure practice.Michael P. Stephens, Acting Inspector General of the Federal Housing Finance Agency Office of Inspector General reaffirmed the federal government’s commitment to consumer protection.“Today’s agreement with SunTrust underlines the importance of holding accountable those individuals and companies who pledge to ensure that homeowners are protected at all times; especially during times when the homeowner is seeking to save their home through a loan modification”,  said Stephens in a statement. “SunTrust has conceded that their HAMP program had numerous deficiencies and has harmed a significant amount of homeowners.  This behavior will not be tolerated.  We are proud to have worked with our law enforcement partners on this case.”In addition to the monetary penalty, SunTrust has agreed to increase its loss mitigation staff, monitor their mortgage modification process, and provide semi-annual reports regarding compliance with the agreement. Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Investigation Settlement SunTrust Banks Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Suntrust Settles HAMP Investigation Investigation Settlement SunTrust Banks 2014-07-03 Derek Templeton Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articlescenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Featured / Suntrust Settles HAMP Investigation About Author: Derek Templeton Share Save Previous: Recovery Evident in Latest Housing Trends Next: Treasury Receives Final TARP Payment from One of Largest Remaining Banks The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agolast_img read more

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Year In Review: REO News

first_img 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 Demand Propels Home Prices Upward 2 days ago Home / Featured / Year In Review: REO News Subscribe 2015-01-02 Brian Honea Sign up for DS News Daily Is Rise in Forbearance Volume Cause for Concern? 2 days ago About Author: Brian Honea Related Articles Servicers Navigate the Post-Pandemic World 2 days ago As the new year rolls in, DS News is taking a look back at some of the biggest REO headlines and stories of 2014:1. FHFA Announces Policy Change For GSEs’ Existing REO Sales – The Federal Housing Finance Agency (FHFA) announced a policy change that would allow Fannie Mae and Freddie Mac to sell existing REO properties to any qualified purchaser at fair market value, which would be determined by the companies.2. Fannie Mae Increases Incentives to Purchase REO Properties – Fannie Mae announced that homebuyers can now receive up to 3.5 percent in closing cost assistance. The help is available within the FirstLook period of Fannie Mae’s HomePath properties in 27 states. The incentive will offer qualified buyers up to 3.5 percent of the final sales price to pay closing costs.3. CFPB Averts Costly Closing Delays with Revisions to Final Disclosure Rule – After much anticipation, the Consumer Financial Protection Bureau (CFPB) issued its final rule for new integrated mortgage disclosures, combining the overlapping disclosures required by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The new rule will certainly change the landscape of the settlement services and mortgage lending industries as we know them.4. What is Causing the Decline in Short Sales? – Consequences stemming from the expiration of the Mortgage Forgiveness Debt Relief Act may be surfacing, according to a perspective piece written by CoreLogic’s Kathryn Dobbyn. The piece found that throughout 2012 and into 2013, short sales had been steadily declining, partly due to rising home prices.5. Wells Fargo’s J.K. Huey Receives 2014 Five Star Lifetime Achievement Award – J.K. Huey of Wells Fargo was presented with the 2014 Five Star Lifetime Achievement Award at the Women in Housing Leadership Summit September 16 as part of the 11th Annual Five Star Conference and Expo. Previous: RES.NET Announces Launch of Customized Technology Services Next: Fannie Mae’s Mortgage Portfolio Plummets; Book of Business Ticks Upward 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. The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post January 2, 2015 1,082 Views in Featured, News, REO Year In Review: REO News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

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New York: Stopping Foreclosure Rescue Scams in Their Tracks

first_img Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago December 15, 2016 1,299 Views New York: Stopping Foreclosure Rescue Scams in Their Tracks Home / Daily Dose / New York: Stopping Foreclosure Rescue Scams in Their Tracks Demand Propels Home Prices Upward 2 days ago 2016-12-15 Kendall Baer Share Save  Print This Post Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Sold! REO Sellers Shift Practices to Attract More Buyers Next: Neighborhood Stabilization Initiative Program Celebrates 1 Year Anniversary Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago New York Attorney General Eric T. Schneiderman is funding an additional $20 million for the fifth year of his Homeowner Protection Program (HOPP), according to a recent report from the Office of the Attorney General. If that isn’t enough, the report also says that Schneiderman is launching the Foreclosure Rescue Scam Prevention Initiative, a new grant program that will enhance outreach, education, and referral services for homeowners at risk of fraudulent foreclosure rescue schemes.“New York has led the nation in developing innovative ways to address the fallout from the foreclosure crisis — including the Homeowner Protection Program, so folks wouldn’t lose their homes because they didn’t have access to an attorney,” said Schneiderman. “Now, with foreclosure rescue scams on the rise, we are enhancing HOPP’s capacity to empower our most vulnerable homeowners to avoid becoming victims of these scams.”In addition to these funds, the report adds that the Office of the Attorney General is committing another $350,000 in new grants through the Foreclosure Rescue Scam Prevention Effort to housing organizations across New York City, Long Island, and the Hudson Valley.“With this new funding from the New York Attorney General’s Office, community organizations will have additional tools to fight back against scammers exploiting financially vulnerable homeowners,” said Christie Peale, the Executive Director of the Center for NYC Neighborhoods. “When people lose their houses to fraud, there are devastating personal costs, but also repercussions felt across our neighborhoods as more and more affordable homes are taken from the market.”Since the birth of the Homeowner Protection Program in 2012, the Office of the Attorney General reports that over 70,000 families have received free assistance to avoid foreclosure through the program, which has funded a statewide network of nearly 90 housing counseling and legal services organizations over the past four years.“I commend the Attorney General’s initiative to assist and protect our most vulnerable constituents through the Homeowner Protection Program, community outreach and education campaigns. Far too many homeowners have been hit with these foreclosure rescue scams, and as these scams grow in prevalence and sophistication, so must our efforts to combat this criminal activity and protect our most vulnerable citizens,” said Assemblyman Walter Mosley (D-New York). Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Kendall Baer Subscribelast_img read more

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Cash Making a Comeback

first_img About Author: Alison Rich The Best Markets For Residential Property Investors 2 days ago Cash Making a Comeback August 18, 2017 1,195 Views Alison Rich has a long-time tenure in the writing and editing realm, touting an impressive body of work that has been featured in local and national consumer and trade publications spanning industries and audiences. She has worked for DS News and MReport magazines—both in print and online—since they launched. Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, News Demand Propels Home Prices Upward 2 days ago Tagged with: Freddie Mac mortgage The Week Ahead: Nearing the Forbearance Exit 2 days ago Freddie Mac mortgage 2017-08-18 Alison Rich Previous: JPMorgan CEO on Trump Next: Inside, Outside U.S.A. Subscribe Housing starts charted lower than anticipated during Q2, according to Freddie Mac’s August Outlook. which is putting a strain on the preferred home-buying route and forcing buyers to pursue alternative avenues.The report examines how today’s limited supply of homes has resulted in an amount of cash sales in lieu of traditional originations, a number that sits above the historic norm.“Usually, not many people like to invest a lot of cash into real estate, which is illiquid and has high transaction costs,” said Sean Becketti, Chief Economist at Freddie Mac, which opens up homeownership to millions by furnishing mortgage capital to lenders. “However, in the current, highly competitive housing market, a cash offer is an effective way to gain an advantage over other bidders. In a cash sale, the seller doesn’t have to worry about the buyer’s ability to obtain a mortgage or the chances that an appraisal will come in below the agreed sales price. And each cash sale means one less mortgage origination.”With Freddie Mac’s prime mortgage market survey interest rates expected to remain under 4 percent for the rest of 2017, home sales should hit 6.2 million units for the year, a 3 percent jump over 2016, Freddie’s report says. That number would reach even greater heights, however, if inventory weren’t so hard to come by, it notes.Due to the intense demand and scant supply, house price appreciation is poised to average 6.3 percent for full-year 2017, the Outlook says.For comparison’s sake, in June, cash sales represented about 18 percent of all home sales. While that was sizably less than the high of 35 percent, it was still well above the historical average of 10 percent, Freddie Mac reported.So what impact might today’s mad dash for cash have on the mortgage market? If cash sales hold tight around 20 percent, the report maintains, that would translate to $172 billion less in mortgage originations than if the cash share reverted to its historical norm. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Cash Making a Comeback Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Related Articles 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 last_img read more

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Nearly All California Cities Failed to Hit Housing Goals

first_img The Best Markets For Residential Property Investors 2 days ago Share Save Nearly All California Cities Failed to Hit Housing Goals Communities across the nation are struggling with housing shortages, with those problems amplified by home prices that continue to increase and a specific shortage of affordable housing keeping many potential homeowners stuck renting. California is certainly not immune to the problem, and has seen its own housing shortages exacerbated by factors such as last year’s widespread and damaging wildfires. But based on data recently released by the state, very few California municipalities are hitting state-mandated goals for expanding housing availability.According to the California Department of Housing and Community Development (HCD), only 13 cities (2.4 percent of the total) met their full goals last year. Or, put another way, 97.6 percent of cities did not meet their full goals. Those goals are mandated by California’s Regional Housing Needs Allocation and Housing Elements (RHNA) rules, which were implemented in 1969 and require “that all local governments (cities and counties) adequately plan to meet the housing needs of everyone in the community.” Moreover, 70 percent of California cities failed to meet their housing goals for any income level.One city that more than surpassed their state-mandated goals? Beverly Hills, which was required to build only three new homes, and instead built 84. As reported by the Bay City Beacon, “Senator Wiener argues that the flawed methodology in calculating RHNA goals is to blame for these baffling results. Cities self-report projected population growth based on recent trends, which predictably, results in lower housing production goals for cities that have seen more displacement of lower-income communities, or have generally resisted growth amid the rapid increase in jobs throughout the state. In general, if a city reports a population plateau, current RHNA methodology assumes little to no demand for new housing.”Last year, Wiener championed California Senate Bill 35, which the Beacon explains “provided ‘by-right’ permitting of qualifying housing developments in cities that fell short of their state-mandated Regional Housing Needs Allocation goals.” Now Wiener has introduced SB 828, which is designed to “reform the methodology” of how the RHNA goals are calculated, as well as increasing the penalties for failing to meet them.“California has a huge housing deficit due to years of under-production,” said Sen. Wiener in a statement, “and we need to dig out of that hole.”If the bill passes, RNHA housing goals would “roll over” from year to year, so any city that came up short would still be expected to make up the difference on top of the next year’s new goals. The bill also include provisions that factored in “residential displacement” caused by events such as foreclosures or evictions, and would require the housing goals to evolve based on the ratio between median home prices and median incomes, a provision designed to require cities to meet the needs of lower and middle-income residents. 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, Government, Headlines, Journal, News Affordable Housing California California Department of Housing and Community Development HOUSING housing shortages inventory shortages Regional Housing Needs Allocation and Housing Elements 2018-02-06 David Wharton Home / Daily Dose / Nearly All California Cities Failed to Hit Housing Goals Related Articles 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 February 6, 2018 2,605 Views Previous: Could New Jersey Help Abate Puerto Rico’s Foreclosure Crisis? Next: Northsight Management Finalizes Merger with Truly Noble Services Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Tagged with: Affordable Housing California California Department of Housing and Community Development HOUSING housing shortages inventory shortages Regional Housing Needs Allocation and Housing Elements Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily About Author: David Wharton The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

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Risking Another Housing Crisis?

first_img Fed Chair Jerome Powell Federal Reserve Governor Housing Market Lael Brainard 2018-12-10 Donna Joseph Servicers Navigate the Post-Pandemic World 2 days ago Risking Another Housing Crisis? Previous: Delaying the Dream of Homeownership Next: Slow Home Sales in the Golden State December 10, 2018 3,178 Views The Week Ahead: Nearing the Forbearance Exit 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: Fed Chair Jerome Powell Federal Reserve Governor Housing Market Lael Brainard  Print This Post About Author: Donna Joseph Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] The Best Markets For Residential Property Investors 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Risking Another Housing Crisis? in Daily Dose, Featured, Government, News, Servicing Servicers Navigate the Post-Pandemic World 2 days ago Forbes contributor Pedro Nicolaci da Costa examines how banks can fortify themselves against another meltdown. His article, da Costa cites Lael Brainard, Federal Reserve Governor, who suggests mandating higher capital requirements on banks—given the continued stability projected by the U.S. economy.”At a time when cyclical pressures have been building and bank profitability has been strong, it might be prudent to ask large banking organizations to fortify their capital buffers, which could subsequently be released if conditions warrant,” Brainard said in a speech last week. Referencing the last financial crisis, Forbes indicated a majority of financial experts are in agreement that banks’ heavy reliance on debt to fund their operations was a key factor in brewing trouble within the housing sector. Are Banks Recession Ready?According to its Comprehensive Capital Analysis and Review, or Stress Test released in July, the Fed found that U.S. firms’ common equity capital ratio has more than doubled, rising to 12.5 percent at the end of Q1 2017 from 5.5 percent in Q1 2009, a total increase of $750 billion to $1.25 trillion. However, during the same period, the percentage of consumers who think credit will become easier to access over the next year declined, according to its Survey of Consumer Expectations. In addition, the Federal Reserve ’s first Financial Stability Report was released in December and assessed the resilience of the U.S. financial system and the triggers that can impact its stability. Speaking about the report, Jerome Powell, the Chairman of the Fed said, “Together, these reports contain a wealth of information on our approach to financial stability and to financial regulation more broadly. By clearly and transparently explaining our policies, we aim to strengthen the foundation of democratic legitimacy that enables the Fed to serve the needs of the American public.” Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Subscribe Related Articleslast_img read more

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HUD Touring the Nation, Speaking on Affordable Housing

first_img Previous: Spotlight on Financial Services Law Firms Next: House Releases Amicus Brief on CFPB Constitutionality Case Demand Propels Home Prices Upward 2 days ago January 27, 2020 1,722 Views in Daily Dose, Featured, Government, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Ben Carson HUD 2020-01-27 Mike Albanese Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Post Share Save The Best Markets For Residential Property Investors 2 days ago About Author: Mike Albanese Servicers Navigate the Post-Pandemic World 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe HUD Touring the Nation, Speaking on Affordable Housing Tagged with: Ben Carson HUD Home / Daily Dose / HUD Touring the Nation, Speaking on Affordable Housing Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles The U.S. Department of Housing and Urban Development’s (HUD) Secretary Dr. Benjamin Carson announced Monday that the Department will lead a bus tour across the nation focused on removing barriers to affordable housing. The tour—Driving Affordable Housing Across America—will begin in Louisville, Kentucky, on Wednesday, stopping in different communities for events and discussions on affordable housing. “In our efforts to alleviate the unnecessary regulatory barriers to housing construction and development, it’s important that we get out into local communities and hear directly from our fellow citizens who are grappling with rising housing prices and learn more about best practices to address them,” Carson said. “Families, businesses and all levels of government have concerns about the rising cost of housing, and this is an opportunity to bring those parties to the table for a discussion about how we can work together to fix the problem.”HUD state the tour is part of Carson’s work as the Chair of the White Housing Council on Eliminating Regulatory Barriers to Affordable Housing. The Council’s eight-member agencies are engaging with governments at the local, state, and tribal level. The National Association of Home Builders (NAHB) released its 2020 priced out estimates report and it casts an ominous shadow over the future fate of home prices. Data shows that if the average price for a new home raises by just $1,000, at least 158,857 homeowners would be entirely priced out of the housing market. According to the report, homeowners would no longer be able to qualify for the mortgages based on their current incomes. These statistics stretched across the nation, showing that although the homeowners would have been able to quality before the increase, following the rise in home prices, they were kicked out of contention.The report also broke down the states and metropolitan areas would be most affected by this pricing out predicament, as it varied widely across the nation. This wide-scale makes sense, as most of the factors that contributed to certain areas being priced out more than other involved the sizes of the local population living within the areas, as well as the affordability of the new homes.  Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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. last_img read more

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Access to Mortgage Credit May Suffer

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Access to Mortgage Credit May Suffer Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Share Save Home / Daily Dose / Access to Mortgage Credit May Suffer 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. Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Ben Carson Commends Investigation Into Landlord Sexual Harassment Complaints Next: FEMA Delivers Update on NFIP Progress Related Articles Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribe Redfin reveals that while nearly half of all Americans purchased homes last year with down payments of less 20%, tightened lending standards could provide roadblocks to homeownership. The Mortgage Credit Availability Index fell 16% in March to its lowest level in five years, with Redfin saying banks are growing wary of borrowers requesting delayed payments in forbearance programs. As estimated 25% of the loans written by Redfin last quarter may not have been possible to originate under new standards. “Thousands of Americans who were priced out of the housing market due to the affordability crisis of the past decade might finally see homeownership as within reach, especially given historically-low mortgage rates. But unfortunately, they are now faced with another roadblock and may not be able to get a loan,” Redfin Senior Economist Sheharyar Bokhari said. “Home equity is the primary way for Americans to build wealth. It’s important that policymakers address this tightening of credit, as it has raised the barrier to homeownership.”The report adds that banks have begun to steer away from jumbo loans, which are used for more expensive homes. Average borrowers, however, are also being squeezed. JPMorgan Chase raised its credit score minimum to 700 and began requiring applicants to have enough savings for a 20% down payment. Wells Fargo is also shying away from riskier loans for borrowers who are unable to provide down payments of 20% and increased its FICO-score requirement to 680.“As unemployment continues to skyrocket and more homeowners default on their mortgages, other banks may follow suit,” Redfin said. Virginia Beach, Virginia, was the highest among the 50 metros studied with 70% of home sales being financed with a down payment of less than 20%. This is mostly due to the region being home to a large military population, many of whom take out VA loans that don’t require down payments. Camden, New Jersey, came in at second at 58.5%. “It’s not just Americans in relatively affordable areas like Virginia Beach who are bearing the brunt of tighter lending standards,” Bokhari said. “Buyers at both the low and high ends of the market seem to be having the most trouble getting loans right now, leaving the middle of the market relatively unscathed.” Servicers Navigate the Post-Pandemic World 2 days ago 2020-04-30 Mike Albanese April 30, 2020 1,279 Views Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Mike Albanese The Best Markets For Residential Property Investors 2 days agolast_img read more

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Forbearances Rise After Three Weeks of Declines

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago After three weeks of declining mortgage loan forbearance activity, forbearances surged again this week, according to the McDash Flash Forbearance Tracker from Black Knight. As of the data released Friday, 8.8% of all active mortgage loans are in a state of forbearance.This is up from 8.7% of loans that were in active forbearance as of the previous week.Forbearances peaked the week of May 22 before falling for about three weeks. However, the increases experienced over the past five days have reversed more than half of the declines experienced over the previous few weeks.In total, about 79,000 additional loans went into forbearance this week, bringing the total number of loans in forbearance to 4.68 million.Today’s loan forbearance numbers mean servicers will have to pay $3.5 billion per month on behalf of GSE-backed loan holders, plus an additional $1.4 billion in taxes and insurance on behalf of these loans.The FHFA has mandated that servicers will not have to pay more than four months of principal and interest payments for GSE-backed loans in COVID-19-related forbearance. However, this means servicers could have to pay up to $8.4 billion in total principal and interest payments.This week, 25,000 GSE-backed loans went into forbearance, while 42,000 FHA/VA loans entered forbearance, and a little more than 12,000 loans in the private market entered forbearance plans.About 6.9% of GSE-backed loans are now in forbearance, while 12.5% of FHA/VA loans and 9.6% of private label and bank portfolio loans are in forbearance.Across the market, the loans in forbearance now make up a little more than $1 trillion in unpaid principal balance (UPB). Loans at the GSEs account for $405 billion of that UPB. FHA and VA loans in forbearance total 258 billion in UPB, and loans in forbearance in the private market total $361 billion in UPB. Share Save  Print This Post June 26, 2020 1,678 Views Related Articles The Best Markets For Residential Property Investors 2 days ago Forbearances Rise After Three Weeks of Declines in Daily Dose, Featured, Foreclosure, News About Author: Krista F. Brock Subscribe The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 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. center_img 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 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Forbearances Rise After Three Weeks of Declines Previous: Increasing Productivity for Mortgage Servicers Next: The Week Ahead: The Fed’s, Treasury’s Response to COVID-19 Data Provider Black Knight to Acquire Top of Mind 2 days ago housing market 2020 Mortgage Forbearance 2020-06-26 Mike Albanese The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Tagged with: housing market 2020 Mortgage Forbearancelast_img read more

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