FHFA Counsel Testifies on Super-Priority Liens in Nevada State Legislature

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea  Print This Post Share Save FHFA Nevada Non-judicial foreclosures Super-Priority Liens 2015-04-08 Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: FHFA Nevada Non-judicial foreclosures Super-Priority Liens Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Foreclosure, News Alfred M. Pollard, general counsel for the Federal Housing Finance Agency (FHFA), testified on Tuesday before the Nevada State Legislature Judiciary Committee on so-called “super-priority liens” and on recently introduced legislation to amend the way the foreclosure process is handled with regards to a homeowner association (HOA)’s lien.The subject of super-priority liens has been a hot one in several states, but particularly in Nevada, where the state supreme court  made a controversial ruling last September that gave HOAs the authority  to foreclose on a home and extinguish a mortgage non-judicially, a ruling that was subsequently appealed by lenders.Last month, a bill was introduced in the Nevada State Senate (SB 306) that proposed to revise the provisions that govern the foreclosure of an HOA’s lien, “requiring the trustee under a deed of trust securing real property to provide a homeowners’ association certain notice concerning the Foreclosure Mediation Program under certain circumstances; and providing other matters properly relating thereto.”Pollard told the committee on Wednesday that while section 1 of SB 306 places “necessary limits” on what an HOA may seek to recover, “Section 2 makes the most important contribution to certainty for all parties.” Section 2 of the bill creates safeguards, including notice to both the unit owner and the first lien holder of a delinquent assessment that an HOA intends to exercise the “super-priority lien” status and extinguish the first mortgage by foreclosing on the home. Section 2 of the bill requires an HOA to provide the mortgagee with a formal statement of the amount of the deficiency along with a breakdown of all charges that will allow the mortgagee to address the lien payment. Pollard – noting that he believed the extinguishing of a first mortgage is an inappropriate approach for an HOA assessment – said the notice may spur the unit owner to pay the HOA deficiency, but most importantly, it gives mortgagees a chance to protect their position by addressing the deficiency if the unit owner does not. Under the provisions of the proposed bill, the mortgagee (after receiving timely notice) would have until five days before the foreclosure sale to cure the HOA dues deficiency themselves to avoid possibly losing hundreds of thousands of dollars when the HOA extinguishes the first mortgage.In his testimony, Pollard covered the remaining sections of SB 306, which call for the notice to be published in a “public place” such as a newspaper or a county website, and provide that if a payment is made to the HOA for the amount of the dues deficiency no later than five days before the foreclosure sale, then the HOA cannot legally extinguish the first lien. Pollard called this a “prudent approach” in his testimony.One case central to last year’s Nevada Supreme Court decision involves a house sold in Las Vegas in 2007 with a mortgage loan for $885,000 originated by Bank of America. The owner defaulted on the loan a year later and Southern Highlands Community Association foreclosed on the property. The association sold the house at an auction in September 2012 to SFR Investments Pool 1 for $6,000 – the amount the homeowner owed in delinquent HOA dues. When Bank of America tried to schedule its own foreclosure auction on the house the following December, SFR Investments made a filing to stop Bank of America’s foreclosure auction, claiming that the mortgage had been extinguished when SFR bought the house in SeptemberIn order to protect Fannie Mae’s and Freddie Mac’s property rights, FHFA intervened in two Nevada cases in which an HOA extinguished a mortgage last year.In December, FHFA released a statement warning organizations that label mortgage loans with super-priority lien status that such loans will not push mortgages backed by Fannie Mae and Freddie Mac into the secondary position. The warning was aimed mainly at energy retrofit financing programs and HOAs that attach super-priority lien status to mortgages because of the risk they pose to taxpayers while Fannie Mae and Freddie Mac are under FHFA’s conservatorship.”Extinguishing property rights is no inconsequential matter,” Pollard said in his testimony. “FHFA, which operates under federal law addressing such matters, must consider this as Fannie Mae and Freddie Mac review not only the legal issues involved, but as well the underwriting standards that apply in states that maintain such potential extraordinary remedies.  FHFA has an obligation to protect Fannie Mae’s and Freddie Mac’s rights. By way of summary, FHFA does find that most of the provisions of SB 306 improve the situation for lenders and secondary market participants in Nevada and support common interest communities, while we continue to have concerns with other sections of the existing law and practices under that law.” 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 April 8, 2015 1,678 Views Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: Rate Hike Debate Continues in Federal Open Market Committee Next: DS News Webcast: Thursday 4/9/2015 Home / Daily Dose / FHFA Counsel Testifies on Super-Priority Liens in Nevada State Legislature Sign up for DS News Daily FHFA Counsel Testifies on Super-Priority Liens in Nevada State Legislature 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 Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

Investors Are Effectively No Longer Overpaying for Assets

first_img Share Save Previous: Citigroup, U.S. Bancorp Profitable in Q3 While Goldman Sachs Net Revenues are Down Next: DS News Webcast: Friday 10/16/2015 Investors Are Effectively No Longer Overpaying for Assets Auction.com Investors Single-Family Rentals 2015-10-15 Brian Honea Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Market Studies, News October 15, 2015 1,190 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Investors are effectively no longer overpaying for assets in the residential housing market, according to Auction.com EVP Rick Sharga in the company’s quarterly housing update on Thursday.But for those investors paying at or close to market value for their homes and looking to rent them, the strategy has shifted away from what it was as recently as two years ago.“A couple of years ago, in early 2013, we actually saw some property prices spike,” Sharga said. “When you see an investor paying over 100 percent of the appraised value, it suggests that something in the market is a little bit out of whack. What was happening is that institutional investors were coming into the market in a very big way in states like Nevada and California and buying up properties they decided they were going to rent out. In some cases, they drove prices up so high that not only did the foreclosure discount disappear, but they were paying over market value. For some investors, that’s actually okay as long as the rest of the numbers work out within their business models.”While Sharga said investors have for the most part stopped overpaying for assets, some are still paying at or close to market value. And for those investors, a change in strategy has become necessary in order to stay profitable.“If you’re an investor buying a property to rent, we’ve seen a lot of those folks paying at or close to full market value because what they’re looking at right now is to try and make their money from cash flow on renting the property rather than making their money on based on home price appreciation where they would buy low, rent for a couple of years, and then sell high,” Sharga said. “It’s a very different model than when the buy-to-rent strategy became popular a couple of years ago among institutional investors.” In some cases, they drove prices up so high that not only did the foreclosure discount disappear, but they were paying over market value.” Rick ShargaInvestors now are generally paying around 77 to 78 percent of market value for single-family residential homes, Sharga said.“As an investor, if you find that what you’re doing is buying things significantly lower than that, you’re getting a terrific deal,” Sharga said. “If you’re paying a little bit more than that, it suggests that either you need to sharpen your pencil a little bit or maybe you’re in one of the markets where the price points are a little harder to get to. There is some definite regionality in these numbers.”Sharga suggested that investors whose portfolios have largely consisted of distressed inventory should consider diversifying, given the substantial declines the country has seen in distressed inventory in the last few years. Foreclosure inventory remains high in some areas of the country, such as in the Eastern Seaboard, the Midwest, and in some pockets of Arizona and Nevada, but Sharga said he believes foreclosure levels will normalize within the next two years—and might fall even lower.“I suspect that by the end of 2016, most of the backlogs of bad loans in the states will have been processed through the system,” he said. “By 2017 at the overall national level, we should be back to regular historical levels of foreclosure activity. If lending standards don’t loosen up at all in the next year or so, by 2018 we might actually be at the low normal levels of foreclosure activity. That sounds good and isn’t necessarily a bad thing in and of itself, but the flipside is that more and more people who should be able to get loans won’t because the lenders simply aren’t taking on any risk at all.” Demand Propels Home Prices Upward 2 days ago 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. Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Investors Are Effectively No Longer Overpaying for Assets Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Auction.com Investors Single-Family Rentals Related Articleslast_img read more

Fannie Mae: Less Affordability Amid Steady Growth In 2016

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Economic Outlook Fannie Mae Housing Affordability Housing Outlook January 14, 2016 3,380 Views Servicers Navigate the Post-Pandemic World 2 days ago Previous: Score One Victory for U.S. Bank Next: Counsel’s Corner: Updated HMDA Creates Concerns Over Privacy, Increased Costs Following up the exuberant growth of 2015’s housing market would be a tough act if anyone expected it could be followed. Most forecasts for 2016 come to the same conclusions as those of the National Association of Realtors‒‒optimistic about steady growth, but tempered with an understanding that growth will be more modest this year.As Fannie Mae sees it, the year ahead will be less like a person in love and more like one in a satisfying long term relationship. Growth in the U.S. housing market will continue for its seventh straight year, but there will be bills to pay.In the housing market’s case, those bills will come in the form of affordability, which Fannie Mae says will shrink, especially in the lower-end of the market, where strong home price gains still outpace household income growth.Fannie Mae’s  Economic & Strategic Research (ESR) Group expects consumer spending to underpin economic growth this year, as it did in 2015, and for residential investment and government spending to help drive growth, despite some drag from net exports.Overall, the ESR Group expects the economy to grow 2.2 percent and the pace of improvement in total home sales should be about 4 percent in 2016.“We ended 2015 with a positive jobs report, an annual record high for auto sales, and the housing market poised to be the strongest since 2007,” said Doug Duncan, Fannie Mae’s chief economist. However, he said, “despite our expectation of only a small rise in mortgage rates, home price and income dynamics should inhibit home purchase affordability.”Overall, the housing market and its place in the economy will not be without its obstacles. Duncan cited China’s deteriorating economic activity, a stronger dollar, geopolitical turmoil, and uncertainty about monetary policy as lingering risks to the rosy outlook for the year ahead.“We ended 2015 with a positive jobs report, an annual record high for auto sales, and the housing market poised to be the strongest since 2007.”Doug Duncan, Chief Economist, Fannie MaeEd Delgado, President and CEO of the Five Star Institute in Dallas, cautioned against oversimplifying the economic picture, particularly in light of mounting debts and tighter job markets among younger adults.“The housing sector of the economy, in particular, needs to be re-evaluated,” Delgado said. “Although the housing market made strides this past year, the homeownership rate now stands at the lowest level in 48 years, millennials are saddled with $1.3 trillion in student loan debt, and job prospects for recent grads are bleak. As such, President Obama’s efforts on the housing front cannot be counted as a victory. There now exist barriers of entry for homeownership among first-time homebuyers, millennials, and minorities.”In light of the Fed’s first rate hike since 2006‒‒which Fannie Mae expects to see hit 4.2 percent by year’s end‒‒Duncan said that single-family starts should accelerate to 17 percent this year. But only, he said, “if easing housing supply shortages and a continued strong pace of household formation pan out.”Editor’s note: The Five Star Institute is the parent company of DS News and DSNews.com. The Best Markets For Residential Property Investors 2 days ago Home / Featured / Fannie Mae: Less Affordability Amid Steady Growth In 2016 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. Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Is Rise in Forbearance Volume Cause for Concern? 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe About Author: Scott Morgan Fannie Mae: Less Affordability Amid Steady Growth In 2016 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago in Featured, Market Studies, News Economic Outlook Fannie Mae Housing Affordability Housing Outlook 2016-01-14 Scott Morgan Share Save  Print This Post Sign up for DS News Daily last_img read more

Government Continues to Hold Firms, But Not Individuals, Accountable

first_img Related Articles 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. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Department of Justice Financial Crisis Settlements 2016-02-15 Brian Honea February 15, 2016 970 Views Share Save Tagged with: Department of Justice Financial Crisis Settlements Subscribe Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago A memo issued by the U.S. Department of Justice in September 2015 stated that the department would seek to prosecute individuals and not just firms for their role in precipitating the financial crisis in 2008. Despite this memo, no announcements have been made regarding the prosecution of individuals despite three notable settlements with firms in the last five months.The Justice Department is not the only entity in the last few months to vow to crack down on Wall Street. Democratic presidential hopefuls Bernie Sanders and Hillary Clinton, duSettlring their respective campaigns, have both vowed repeatedly to get tough on Wall Street banks and financial institutions that break the law.The latest settlement occurred last week when Morgan Stanley agreed to pay $3.2 billion to resolve claims that the investment banking firm misled investors as to the quality of mortgage-backed securities in the run-up to the crisis. It was the fourth completed multi-billion dollar settlement between the government and the largest financial firms over its mortgage practices—with still no prosecutions of individuals.“One of the most effective ways to combat corporate misconduct is by seeking accountability from the individuals who perpetuated the wrongdoing,” Deputy Attorney General Sally Q. Yates wrote. “Such accountability is important for several reasons: it deters future illegal activity, it incentivizes changes in corporate behavior, it ensures that the proper parties are held responsible for their actions, and it promotes the public’s confidence in our justice system.”In January, Goldman Sachs agreed in principle to a settlement for $5.1 billion over its MBS practices. When that settlement is complete, it will be the fifth multi-billion dollar agreement over the sales of toxic MBS between the federal government and financial institutions. The DOJ has settled with JPMorgan Chase (a then-record $13 billion in November 2013), Citi ($7 billion in July 2014), and Bank of America (a record $16.65 billion in August 2014) for selling toxic-mortgage backed securities to investors in the run-up to the crisis.In early February, HSBC Bank reached a settlement for $470 million with several federal agencies and almost every state attorney general regarding “mortgage origination, servicing, and foreclosure abuses.”The settlements may not be done yet—there is widespread speculation that Deutsche Bank will settle with the government over RMBS practices this year. There is also speculation that the Royal Bank of Scotland will settle for a multi-billion dollar amount with the FHFA for allegedly selling toxic RMBS to Fannie Mae and Freddie Mac before the crisis.While it has been less than six months since the Yates memo was issued, one must ask the question: Will the government hold executives from these firms accountable, or will the government continue to reach multi-billion dollar settlements with the firms and be satisfied that justice was served? Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Government Continues to Hold Firms, But Not Individuals, Accountable Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Fairholme Demands the Government Turn Over Documents in GSE Profit Suit Next: DS News Webcast: Tuesday 2/16/2016  Print This Post in Daily Dose, Featured, Government, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Government Continues to Hold Firms, But Not Individuals, Accountable Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

OCC to Banks: Don’t Let Technology Come Between Us

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Home / Daily Dose / OCC to Banks: Don’t Let Technology Come Between Us Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Tagged with: Banks OCC Technology Related Articles Banks OCC Technology 2016-04-27 Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 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. April 27, 2016 1,074 Views The Office of the Comptroller of the Currency (OCC) has been a little down on technology as of late.In mid-March, Comptroller of the Currency Thomas Curry declared in a public speech that so-called emerging “fintechs,” or financial technology companies, would not take the place of banks. On March 31, Curry spoke again of emerging fintechs and stressed the difference between “responsible” innovation and just plain innovation.On Wednesday, the OCC issued a bulletin to remind national banks and federal savings associations of their obligations when it comes to maintaining and retaining records—and allowing examiners access to those records, which includes not letting technology get in the way.“The OCC has become aware of communications technology recently made available to banks that could prevent or impede OCC access to bank records through certain data deletion or encryption features,” the bulletin said. “Use of communications technology in this manner is inconsistent with the OCC’s expectations regarding data retention and availability.”The OCC said that in order to meet its supervisory responsibilities, its examiners must be able to communicate freely with bank personnel and have timely access to banks’ records. The purpose of the bulletin was to remind banks that the OCC should have full and unimpeded access to a bank’s books and records pursuant to the OCC’s authority, and that access should not be limited by communications technology.“Certain available communications technology contains data deletion and encryption features that can be used to prevent or impede OCC access to a bank’s books and records,” the bulletin said. “For example, the OCC is aware that some chat and messaging platforms have touted an ability to ‘guarantee’ the deletion of transmitted messages. The permanent deletion of internal communications, especially if occurring within a relatively short time frame, conflicts with OCC expectations of sound governance, compliance, and risk management practices as well as safety and soundness principles.”Any technology used by bank management must allow the OCC’s examiners access to appropriate bank records, the OCC said.center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Government, News OCC to Banks: Don’t Let Technology Come Between Us 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 Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Previous: This Year’s Housing Forecast Looks a Lot Like 2006 Next: Is Something Amiss in the Reverse Mortgage Industry?last_img read more

Tech Talks: How Technology is Shaping the Industry

first_img Demand Propels Home Prices Upward 2 days ago Related Articles Sign up for DS News Daily in Daily Dose, Featured, News, Technology The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 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 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Week Ahead: Update on Economic Conditions in the Beige Book Next: Choosing a Tech Savvy Insurance Vendor  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Tech Talks: How Technology is Shaping the Industry Tagged with: Regulation Technology About Author: Staff Writer Share Save May 29, 2017 1,578 Views As the technology conversation in the mortgage industry heats up, many companies are attempting to meet industry demands and adopt streamlined industry processes. Today’s companies are driven by creativity and innovation and are fostered by client success. DS News spoke to James Vinci, VP and Chief Technology Officer at Equator, about what mortgage professionals can learn from other industries and what technology trends are having the most impact today.Vinci was previously the president and enterprise architect at RedWire IT, SVP of Professional Services at Lydian Technology Group, and SVP of Professional Services at WellFound Decade Corp. He is a graduate of Columbia University.Q: Tell us about your role, and what is the  focus for the year?A: I’m the VP and Chief Technology Officer of Equator, which is a software provider to the default mortgage servicing industry. The platform supports four of the five largest servicers in the country, the largest GSE, and the transaction and processing of over 40 percent of the REO and short sale volume in the country. Equator’s ecosystem houses over 65,000 real estate agents and 30,000 vendors, which supported the selling of more than 100,000 properties valued at $16 billion last year. It’s a significant enterprise software platform and, because it holds quite a bit of share, it has great insight into the loss mitigation and default portions of the servicing industry.Q: What market insights and data do you believe have become the most valuable to the REO market?A: In the REO market, determining the proper disposition strategy (as-is versus renovate, sale versus rental, traditional versus auction) and efficiently executing on that strategy is critical. To address this, there has been an increasing use of analytics and machine learning to match the right assets to the right strategy by local market. Further, these advanced analytics are helping optimize the best real estate agents and REO vendors to execute these strategies. Top servicers are focused more than ever on one of two very different strategies—either efficiently marketing their asset to quickly sell it or upgrading it and marketing it as a long-term rental.Advanced analytics are also helping servicers better manage agent networks through agent matching technology, which provides servicers with recommended agent selection options. This matching process is intended to help a servicer sell an REO in less time than today’s process. Q: How should servicers use data to be more operationally efficient? What about agents?A: I am a strong believer in the adage that “time is money.” It is important for servicers to use a platform that’s designed to automate and optimize their processes, hence reducing their overall costs. Servicers should also consider platforms with robust tracking and logging data that enhances compliance and audit capabilities but also allows servicers to monitor their overall disposition efficiency. For agents, it’s increasingly important to stay close to their local market’s REO trends and understand how to compete for the servicer leads and listings. This means having access to local market REO intelligence.Q: What advice can you provide smaller businesses that may have limited financial resources to access advanced technology? Are there other solutions?A: As workflow and business process management technologies continue to mature, more and more options become available. Many of these options are vertical domain-independent while other custom solutions involve significant implementation cycles with sizable dependencies on technology staff. In our vertical domain, due to the compliance, regulatory and overall cost pressures, we are a strong believer that outsourcing to a technology vendor that specializes not only in workflow but default mortgage servicing is critical, especially for smaller servicers and hedge funds. Q: How do you perfect compliance without bringing costs down? What are regulatory processes or products companies are using to help clients become more compliant?A: Compliance is really about following the rules and guidelines every single time, on every single asset. Workflow technology and automation are cost-effective approaches to accomplish this. Technological innovation has made great strides in the mortgage industry as companies are broadening their services, increasing accessibility and delivering high levels of convenience and efficiency. Automation is a key part of that by serving customers how they want to be served, when they want to be served and with the consistent quality that is required in today’s stringent compliance environment. Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Regulation Technology 2017-05-29 Staff Writer The Best Markets For Residential Property Investors 2 days ago Tech Talks: How Technology is Shaping the Industry Subscribelast_img read more

New Buyers Unafraid to Jump into the Housing Market

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Genworth Mortgage Insurance recently released their inaugural report on first-time homebuyers. Source data dates back to 1994 and analyzes over 20 million records. The survey tracks home sales to first-time homebuyers on a monthly basis, publishes quarterly, and compares the data against national housing market indicators. It is also singles out and identify homebuyers that purchased their home using a VA loan, USDA loan, FHA loan, or with a low downpayment coupled with mortgage insurance instead of the traditional 20 percent downpayment that has historically been required. The report found that this demographic accounted for 424,000 single-family home sales, or 38 percent of the total homes sold in Q1 of 2017. This amount is an 11 percent increase from Q1 2016, and the most since 2005.It also found that first-time homebuyers were the driving force behind the expansion of the housing market between 2014 and 2016, making up 85 percent of total sales and averaging an increase of 260,000 sales per year, two years in a row. During that time period, FHA loans were used 80 percent of the time to secure a mortgage—around 730,000 loans. An estimated 510,000 sales used private mortgage insurance to purchase their home, further reducing the number of homes obtained through a traditional 20 percent downpayment. In order to fully understand and predict the first-time homebuyer market, the report also tracks repeat homebuyers. In 2016, repeat homebuyers accounted for only 63 percent of home sales, the lowest since 2000. This is attributed to lower asset accumulation, preventing people from upgrading their living situation. In a statement released with this new data, Tian Liu, Chief Economist for Genworth Mortgage Insurance, said, “[First-time homebuyers’] impact has already been felt in falling inventory and rising home prices, and we expect them to increasingly drive growth to businesses most exposed to this market segment …  [b]y studying this group more closely, we hope to bring a better understanding about the many low down payment options available to help first-time homebuyers reach homeownership sooner.”The report for the second quarter of 2017 will be released August 22, 2017. Related Articles Subscribe Home / Daily Dose / New Buyers Unafraid to Jump into the Housing Market Share Save New Buyers Unafraid to Jump into the Housing Market Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago center_img Tagged with: FHA loan First-Time Homebuyers Genworth Mortgage Insurance USDA loan VA loan About Author: Staff Writer June 9, 2017 1,289 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago FHA loan First-Time Homebuyers Genworth Mortgage Insurance USDA loan VA loan 2017-06-09 Staff Writer Previous: Fannie Mae Sheds 3,400 Delinquent Loans in NPL Sale Next: Post-Foreclosure Stress Disorder: Barriers Keeping Buyers from Market  Print This Post The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 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 agolast_img read more

Industry Impact: President Trump’s Call to End GSE Conservatorship

first_img Related Articles Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News  Print This Post Sign up for DS News Daily Industry Impact: President Trump’s Call to End GSE Conservatorship Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Company News Fannie Mae Hugh Frater Subscribe March 27, 2019 3,509 Views Company News Fannie Mae Hugh Frater 2019-03-27 David Wharton Wednesday proved to be a significant day for the GSEs. Even as the topic of housing finance reform saw discussion in Congress, President Donald J. Trump signed a memorandum tasking the Treasury Department and Department of Housing and Urban Development (HUD) with preparing a reform plan for Fannie Mae and Freddie Mac. The White House memo directed that this plan be delivered “as soon as possible.”The President’s PlanThe President specifically called for a “comprehensive” plan for removing Fannie and Freddie from the government conservatorship under which they have been operating since September 2008, during the housing crisis.The memo states that “in the decade since the financial crisis, there has been no comprehensive reform of the housing finance system despite the need for it, leaving taxpayers exposed to future bailouts.” The memo went on to claim that “the Department of Housing and Urban Development’s (HUD) housing programs are exposed to high levels of risk and rely on outdated business processes and systems.”As such, the Presidential memo calls on federal agencies to:End the conservatorship of Fannie Mae and Freddie Mac and improve regulatory oversight over them.Promote competition in the housing finance market and create a system that encourages sustainable homeownership and protects taxpayers against bailouts.The memo also notes that the administration wants to work with Congress in order to bring about a comprehensive reform plan, adding that “sustainable homeownership is the benchmark of success for comprehensive reforms to government housing programs.”“I look forward to working with FHFA, HUD, Congress, and other stakeholders to address the need for housing finance reform as laid out by President Trump’s Presidential Memorandum,” said U.S. Secretary of the Treasury Steven T. Mnuchin in a statement. “We support a system that provides for access to lending for hardworking Americans, while also protecting taxpayers from risk. An effective and efficient federal housing finance system will also meaningfully contribute to economic growth.””A sustainable housing finance system is critical to providing liquidity and security to the housing market and protecting American taxpayers,” said Ed Delgado, President & CEO, Five Star Global. “I look forward to the mortgage industry participating with federal agencies and Congress toward common-sense process reforms that promote responsible homeownership and better safeguard against future economic downturns.”National Association of Realtors (NAR) President John Smaby said in a statement, “While NAR believes the GSEs must be transitioned out of conservatorship, this must be done in a responsible manner that will protect taxpayers and retain the enterprises’ public mission, and these actions must be driven by Congress. This is the only way to secure an explicit government guarantee, a public mission and the 30-year fixed rate mortgage, critical components of a robust U.S. housing market. That point will remain NAR’s primary focus as we continue GSE reform conversations with the Senate, House, and the administration.”You can read the full memo here. To read more about this week’s Senate Banking Committee hearings on housing finance reform, click here and here.Fannie Mae’s New CEOFannie Mae today announced that it has appointed Hugh R. Frater as CEO effective March 26. As CEO, Frater will set the overall enterprise vision and strategic direction of the company. In addition to his role as CEO, Frater remains on the Board of Directors. Frater previously served as Interim CEO.“Following a six month nationwide search of qualified candidates, I am pleased to announce Hugh R. Frater as Fannie Mae CEO. Hugh’s deep understanding of the housing and the financial services industries, broad experience, and strong leadership skills make him an ideal choice to lead Fannie Mae,” said Jonathan Plutzik, Chair of Fannie Mae’s Board of Directors. “Hugh’s contributions as Interim CEO over the last several months demonstrate his commitment to strengthening the company and delivering value to our customers and partners. This appointment also provides continuity in Fannie Mae’s leadership team as we fulfill our mission to provide liquidity and support to the mortgage market.”“I am honored with this opportunity to lead Fannie Mae and to play a part in the company’s important contributions to the housing finance system,” Frater said. “The Fannie Mae of today is customer focused, innovative, and committed to leading a housing finance system that is safe, sound, and sustainable for taxpayers and creditworthy borrowers of all income levels. I look forward to continuing to work with this outstanding leadership team to deliver on Fannie Mae’s strategic priorities and transform the mortgage experience for our customers and partners.”Rocky Stubbs, SVP, Direct Lending for Flagstar Bank, told DS News, “Hugh Frater’s announcement is being warmly received by the industry. His reputation is outstanding and there is a high degree of confidence in his capabilities. Fannie Mae was featured in John Collin’s classic Good to Great. One of the key findings is that Level 5 leaders usually come from within the organization. I’m just thrilled that after diligently scouring the market, their search led them right down the hall.”Not all industry experts are without reservation, however. “I always get nervous when the CEO of a government agency such as Fannie Mae pledges to ‘transform the mortgage experience,” said Edward Pinto, Co-Director, American Enterprise Institute Center on Housing Markets and Finance. “In a 1994 press release, James Johnson, Fannie’s CEO, made a similar pledge. The transformation wrought by the 1994 pledge nearly cratered the world’s economy.”Frater served as Fannie Mae’s Interim CEO since October 16, 2018, and on Fannie Mae’s Board since 2016. He has held a number of executive and management roles throughout his career. Frater currently serves as Non-Executive Chairman of the Board of VEREIT, Inc. He previously led Berkadia Commercial Mortgage LLC, a national commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties.He served as Chairman of Berkadia from April 2014 to December 2015 and he served as CEO of Berkadia from 2010 to April 2014. Earlier in his career, Frater was an EVP at PNC Financial Services, where he led the real estate division, and was a Founding Partner and Managing Director of BlackRock, Inc.This news follows the announcement of similar impending changes at Freddie Mac. Earlier this month, Freddie Mac announced that Donald H. Layton will retire as CEO and that the Board of Directors has appointed David M. Brickman to succeed him effective Monday, July 1. Brickman will become a member of the Freddie Mac Board of Directors at that time. You can read more about that story here. Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: David Wharton Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago Previous: Savings Clauses in Foreclosure Next: Diving Deeper Into Housing Finance Reform 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] 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 / Industry Impact: President Trump’s Call to End GSE Conservatorship Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Applying Previous Lessons to Mortgage Servicing’s COVID-19 Response

first_img The Best Markets For Residential Property Investors 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 Share Save Home / Daily Dose / Applying Previous Lessons to Mortgage Servicing’s COVID-19 Response There are similarities, but the current downturn is different from the 2008 Great Recession. Following 2008, the U.S. mortgage servicing infrastructure was strengthened, and now, according to Urban Institute, those changes are going to be put to the test. In a report, Urban Insitute’s Karan Kaul and Laurie Goodman examine how these safeguards will protect homeowners.The difference between now and 2008 is that homeowners have record levels of equity in their homes. The ratio of total mortgage debt outstanding to the value of the US housing stock is at a record-low 36%, compared with 54% on the eve of the Great Recession. According to Urban, what homeowners need right now is immediate payment relief.Similar policies to 2008 are now being implemented in response to COVID-19 including forbearance, but, as Urban notes, if forbearance is not properly reported to the credit bureaus, it is treated as delinquency.To reach more borrowers, Urban suggests expanding the LTV threshold for refinance options, including Fannie Mae’s High LTV Refinance Option and Freddie Mac’s Enhanced Relief Refinance Mortgage.“This is a balancing act,” Urban notes. “Expanding refinance eligibility will have a negative effect on mortgage-backed security prices, which will, in turn, raise rates to new borrowers. But during a crisis period, such action seems warranted.”While the loss mitigation toolkit we have in 2020 is much more robust than what we had in 2008, swift early intervention, even if imperfect, is much more effective than delayed actions.“Although no one knows how serious the upcoming downturn will be or how long it will last, the need of the hour is to provide immediate payment relief to the largest possible number of borrowers,” Urban adds. “The lost opportunity has been to allow the streamlined refinance programs to mostly lapse, with no crisis-type provisions for immediate restoration.” Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Sign up for DS News Daily Tagged with: Coronavirus Recession Urban Insitute Coronavirus Recession Urban Insitute 2020-03-24 Seth Welborncenter_img About Author: Seth Welborn  Print This Post Applying Previous Lessons to Mortgage Servicing’s COVID-19 Response in Daily Dose, Featured, Government, News 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 March 24, 2020 1,639 Views 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. Previous: IMS Datawise Launches Upkeep Next: Possible $2.5T Stimulus Bill Brings Optimism Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

Abuse victims’ group calls for Raphoe Diocese inquiry

first_img Twitter Calls for maternity restrictions to be lifted at LUH By News Highland – July 14, 2011 Facebook WhatsApp Twitter Previous articleTesco’s Stranorlar plans are appealed to ABPNext articleWoman tells court she thought she and her children would die in 2008 crash News Highland WhatsApp Abuse victims’ group calls for Raphoe Diocese inquiry Facebook Guidelines for reopening of hospitality sector published Pinterestcenter_img Google+ Google+ Clerical sex abuse victims support group ‘One in Four’ says the publication of the Cloyne Report raises concerns about other dioceses across the country singling out the diocese of Raphoe.The 421-page document describes former Bishop John Magee’s handling of complaints as “inadequate and inappropriate”.The investigation found that he failed to report all allegations of clerical child sex abuse to Gardai.One in Four’s Director is Meave Lewis:[podcast]http://www.highlandradio.com/wp-content/uploads/2011/07/lewisam.mp3[/podcast] RELATED ARTICLESMORE FROM AUTHOR 448 new cases of Covid 19 reported today Newsx Adverts Pinterest Three factors driving Donegal housing market – Robinson Help sought in search for missing 27 year old in Letterkenny NPHET ‘positive’ on easing restrictions – Donnelly last_img read more