Investor Voluntarily Drops One of Two Lawsuits Over GSE Profits

first_img November 4, 2014 708 Views Sign up for DS News Daily Previous: LenderLive Names Account Executive for Florida’s Correspondent Lending Division Next: Foreclosure Petitions, Deeds See September Increase in Massachusetts Data Provider Black Knight to Acquire Top of Mind 2 days ago Investor Voluntarily Drops One of Two Lawsuits Over GSE Profits 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 Pershing Square Capital Management CEO William A. Ackman filed a voluntary notice of dismissal in the U.S. District Court for one of his company’s lawsuits against the federal government over the sweeping of GSE profits into the U.S. Department of Treasury.Ackman filed two lawsuits against the government on consecutive days in mid-August over the handling of Fannie Mae and Freddie Mac profits. Pershing Square is the largest non-government shareholder in GSE stock with about 170 million shares and close to $700 million invested in both GSEs combined. Pershing’s stake in the two GSEs is about 10 percent.Pershing Square’s first lawsuit, filed in the U.S. Federal Court of Claims, alleged that the diverting of GSE profits into Treasury, a practice started in 2012, equates to taking private property for public use without “just compensation,” a practice forbidden by the Fifth Amendment of the U.S. Constitution. The lawsuit alleged that the diversion of GSE profits created a “windfall” for the government while shortchanging GSE shareholders. This suit is still active.The second lawsuit, filed in the U.S. District Court, claimed that Pershing Square was denied fundamental shareholder rights and that the Federal Housing Finance Agency (FHFA), conservator for both GSEs since 2008, refused to allow Pershing Square to inspect books and records despite written demands made by Pershing to the FHFA board of directors to do so. The second complaint also called for the GSE profits being diverted to Treasury, which amount to billions of dollars, should be divided among the GSE’s common shareholders. This is the suit that Ackman voluntarily dismissed.Two similar lawsuits filed in 2013 by investors Fairholme Funds and Perry Capital were dismissed by a judge in late September, with the judge ruling that the sweeping of GSE profits into Treasury was legal under the Housing and Economic Recovery Act. Both Fairholme and Perry have appealed the judge’s decision. Analysts suggest that Ackman anticipated a similar ruling on his lawsuits and that he dropped the suit in order to avoid a lengthy appeals process.In mid-October, both Pershing Square and Fairholme announced they had shored up their stock in Fannie Mae and Freddie Mac.The federal government seized control of Fannie Mae and Freddie Mac in September 2008 at the height of the nation’s financial crisis, after which Treasury provided $188 billion to bail out the companies. Fannie Mae and Freddie Mac have since become profitable and have returned $218.7 billion in dividends to taxpayers. The two GSEs have been in conservatorship since the government takeover six years ago. About Author: Brian Honea Related Articles Home / Daily Dose / Investor Voluntarily Drops One of Two Lawsuits Over GSE Profits Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribecenter_img Share Save Tagged with: Fannie Mae Freddie Mac Government Sponsored Enterprises GSE Profits Pershing Square Capital Management U.S. Department of Treasury Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Government, News The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 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 Fannie Mae Freddie Mac Government Sponsored Enterprises GSE Profits Pershing Square Capital Management U.S. Department of Treasury 2014-11-04 Brian Honealast_img read more

Fannie Mae Expects Economy to ‘Drag’ Housing Toward Recovery in 2015

first_img The Best Markets For Residential Property Investors 2 days ago  Print This Post Fannie Mae Expects Economy to ‘Drag’ Housing Toward Recovery in 2015 The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Economic Forecast Fannie Mae GDP Housing Market 2015-01-22 Scott Morgan Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Economic Forecast Fannie Mae GDP Housing Market Sign up for DS News Daily Share Save Home / Daily Dose / Fannie Mae Expects Economy to ‘Drag’ Housing Toward Recovery in 2015 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, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles About Author: Scott Morgan tweet Demand Propels Home Prices Upward 2 days ago As Fannie Mae sees it, 2015 will be a good year for the housing market, even if residential real estate has to get dragged into the black.Fannie Mae’s 2015 Economic Outlook, released Thursday, is less a picture of a purely positive housing market than an expectation of an economy so strong across several key growth sectors that it will propel the national housing market to greater heights than in 2014. Or, as Fannie Mae puts it, the economy is strong enough to drag housing behind it and create growth by default.”Our theme for the year, ‘Economy Drags Housing Upward,’ implies that both housing and the economy will pick up some speed in 2015, but that the economy will grow at a faster pace,” said Doug Duncan, chief economist at Fannie Mae.Fannie Mae expects strengthening private domestic demand to drive the economy up 3.1 percent in 2015—up from the agency’s earlier prediction for 2.7 percent growth.While that prediction is still modest, Fannie Mae says it’s strong enough to “drag last year’s unspectacular housing activity upward,” according to the report. Fannie Mae credits projections for continued low gasoline prices, firming labor market conditions, rising household net worth, improving consumer and business confidence, and reduced fiscal headwinds to usher in a year of steady, if “not yet robust” economic improvement that should lead to a higher rate of household formation in 2015.”Consumer spending should continue to strengthen due in large part to lower gas prices, giving further support to auto sales and manufacturing,” Duncan said. “We believe this will motivate the Federal Reserve to begin measures to normalize monetary policy in the third quarter of this year, continuing at a cautiously steady pace into 2016 and 2017.”Duncan also said he suspects mortgage interest rates to stay low throughout this period, attracting steady supply of new homebuyers.Fannie Mae’s report echoes the sentiments of the National Association of Home Builders, which also this week spoke of bluer housing and economic skies ahead. Top economists and housing experts in a panel at the group’s International Builders’ Show in Las Vegas predicted a recovering labor market, low interest rates, and improvements in credit availability for borrowers as the three main triggers for growth in the housing market this year.These assessments, however, are not shared by everyone, at least not blanketly. Earlier this month, Trulia’s chief economist Jed Kolko warned that falling oil process could have a recessive effect on housing in major oil-producing state such as Texas, Oklahoma, and Louisiana.Kolko did say, however, that lower fuel prices could just as likely stimulate flagging industrial economies in the north and Midwest, where oil production is virtually nonexistent.Regardless, Duncan and Fannie Mae foresee big things, even if this year will not be a breakout year for housing. “We expect the rising share of new home sales to lead to a healthy increase in single-family construction of about 19 percent, or 765,000 units,” he said. The Best Markets For Residential Property Investors 2 days ago Previous: U.S. Supreme Court Hears Arguments For, Against ‘Disparate Impact’ Claims; Decision Pending Next: CFPB Fines Two Lenders $35.7 Million for Kickback Scheme Governmental Measures Target Expanded Access to Affordable Housing 2 days ago January 22, 2015 2,116 Views 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. last_img read more

Lawmakers Ask CFPB to Delay Enforcement of TILA-RESPA

first_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Previous: REO Cash Sales Share Rebounds From Seasonal Decline Next: DS News Webcast: Monday 4/13/2015 About Author: Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Two Republican lawmakers have written a letter to the Consumer Financial Protection Bureau (CFPB) director asking for the delay of the combined Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) mortgage disclosure forms.TILA-RESPA is scheduled to go into effect on August 1, but U.S. Representatives Blaine Luetkemeyer (R-Missouri) and Randy Neugebauer (R-Texas) have asked the CFPB to hold off until January 1 in a letter recently sent to the Bureau’s director,Richard Cordray. The Congressman said in the letter that summertime is one of the busiest for mortgages and that the enactment of TILA-RESPA could be disruptive to home sales and loan closings.The rule was first created out of the Dodd-Frank Wall Street Reform Act of 2010, and it was finalized late in 2013 following a comment period and months of education, training, and preparation on the part of lenders. The preparation has continued as many lenders are taking all the necessary steps to make sure they have all the systems in place and are in complete compliance with the new rule.Luetkemeyer and Neugebauer asked in their letter for a five-month “hold harmless” period from August 1, 2015 until December 31, 2015 to “help ensure consumer confidence and stability in the nation’s housing market.” The Congressmen said in their letter that the proposed five-month “hold harmless” period will give all those involved with the mortgage loan closing process more time to educate themselves on the rule and will give the CFPB more time to address any issues that might arise. They asked for Cordray to respond by April 17.Both Luetkemeyer and Neugebauer are chairmen of subcommittees in the House Financial Services Committee. Leutkemeyer is the head of the Housing and Insurance Subcommittee, and Neugebauer is chair of the Financial Institutions and Consumer Credit Subcommittee. CFPB Congressman Blaine Luetkemeyer Congressman Randy Neugebauer House Financial Services Committee 2015-04-12 Brian Honea Share Save April 12, 2015 1,322 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 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 Lawmakers Ask CFPB to Delay Enforcement of TILA-RESPAcenter_img Related Articles Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily 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. in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: CFPB Congressman Blaine Luetkemeyer Congressman Randy Neugebauer House Financial Services Committee Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Lawmakers Ask CFPB to Delay Enforcement of TILA-RESPAlast_img read more

Cash Sales, Distressed Sales, and REO Sales, Oh My…

first_img The Best Markets For Residential Property Investors 2 days ago December 21, 2016 1,062 Views Sign up for DS News Daily in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Cash Sales, Distressed Sales, and REO Sales, Oh My… 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: Sustainable Growth in 2017 May Flourish in the East Next: No Relief for Tight Housing Supply Quite Yet The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles About Author: Scott Morgan Share Save The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago 2016-12-21 Kendall Baer Servicers Navigate the Post-Pandemic World 2 days ago 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  Print This Post The shares of cash and distressed sales in the overall U.S. housing market in September continued their slow march back toward pre-recession norms. The most recent look into nontraditional sales by CoreLogic showed that cash sales comprised a little less than 32 percent of home sales in September, while distressed sales made up 7 percent.September’s cash numbers were down 1.3 percent from last year, having fallen steadily since their 2011 peak of nearly 47 percent. Alabama had the largest cash sales share of any state: at 47.6 percent. West Virginia and New York reported more than 45 percent, while Florida and Indiana each posted about 41 percent. Before the recession, about 25 percent of sales were cash, on average. CoreLogic expects the market to hit that mark in 2019.Distressed sales in September dropped 3 percent from a year ago. The pre-crisis share of distressed sales was traditionally about 2 percent. If the current year-over-year decrease in the distressed sales share continues, it will reach that mark in mid-2018, CoreLogic stated.All but nine states recorded lower distressed sales shares in September, when compared with a year earlier. Maryland’s 19 percent was the largest share of distressed sales of any state. Connecticut was close, with 18.4 percent. Michigan (17.6 percent), New Jersey (15.9 percent) and Illinois (15.1 percent) rounded out the five most distressed sales-heavy states.North Dakota had the smallest distressed sales share at 2.7 percent. It and the District of Columbia are within a single percent of their pre-crisis levels.Overall REO sales in September hit their lowest point since August 2007 at 4.7 percent, though REO sales had the largest cash sales share in September, 60 percent. Resales had the next-highest cash sales share at 32 percent, followed by short sales at 31 percent. Cash-paid new-builds were at 15.5 percent. Subscribe Demand Propels Home Prices Upward 2 days ago Cash Sales, Distressed Sales, and REO Sales, Oh My…last_img read more

A Look at What Experts Are Saying About Regulation

first_imgHome / Daily Dose / A Look at What Experts Are Saying About Regulation Sign up for DS News Daily Financial Regulation Treasury 2017-06-13 Brianna Gilpin Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Tagged with: Financial Regulation Treasury Servicers Navigate the Post-Pandemic World 2 days ago About Author: Brianna Gilpin June 13, 2017 3,204 Views A Look at What Experts Are Saying About Regulation in Daily Dose, Featured, Government, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Subscribe The Best Markets For Residential Property Investors 2 days ago Previous: Before and After the Storm Next: FOMC Convenes: What Could Happen to Mortgage Rates Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Deregulation is on the horizon according to the U.S. Department of the Treasury’s Monday report. The report is the first in a series to President Trump examining the U.S. financial regulatory system and reviewing ways to immediately provide relief, however some feel relief is the last thing the modifications will do.Treasury Secretary Steven Mnuchin and other officials have been listening to hundreds of stakeholders over the last four months including banks of all sizes, regulators, FSOC members, consumer advocates, academic, analysts, and inventors. The sessions have given the Treasury a chance to paint a clear picture of redundancy, fragmentation, and inefficiency in the current regulatory system.“Properly structuring regulation of the U.S. financial system is critical to achieve the administration’s goal of sustained economic growth and to create opportunities for all Americans to benefit from a stronger economy,” said U.S. Treasury Secretary Steven T. Mnuchin. “We are focused on encouraging a market environment where consumers have more choices, access to capital and safe loan products – while ensuring taxpayer-funded bailouts are truly a thing of the past.”Conversely, congresswoman Maxine Waters (D-CA), ranking member of the Committee on Financial Services, feels the nation’s economic security is in grave danger.“In some respects this plan is even more expansive in scope than the Wrong Choice Act, and hides harmful intentions behind generalities and platitudes,” Waters said. “For example, the report proposes to rewrite the Community Reinvestment Act in an ambiguous, undefined way that could lead to less investment in our communities, and also instructs Congress to “take action to reduce regulatory fragmentation, overlap and duplication” without any concrete recommendations on how to do so.”Waters said the plan would destroy the Consumer Financial Protection Bureau and roll back critical rules in place to ensure stability of the U.S. financial system.The passing of the Financial CHOICE Act is the first step in deregulation, however the report focuses on solutions the executive branch can execute through regulatory changes and executive actions, according to Mnuchin. The recommendations would remove restrictions that were put in place during the Obama administration.”In the housing and housing finance markets you really only need to look at two data points to stiffen up over how onerous and problematic regulation has gotten,” says Financial Consulting Company The Collingwood Group Chairman Tim Rood. “First, the cost to originate a mortgage is at an all-time high at over $8,000, and second, the regulatory and compliance costs to build a home is over $80,000. Both of those numbers most directly and negatively impact households with small balance mortgages and entry level homes, which tend to be minority and low to moderate income households. The Treasury proposal is a step in the right direction.”The report, which detailed its findings, covered how critically important community financial institutions, banks, and credit unions are in serving Americans, how capital, liquidity, and leverage rules can be simplified to increase the flow of credit, reiterated how the U.S. must ensure its banks are globally competitive, the criticalness of improving market liquidity for the U.S. economy, the need of reform to the Consumer Financial Protection Bureau, described the need of better tailored, more efficient, and effective regulations, and how congress should review the organization and mandates of the independent banking regulators to improve accountability.President and CEO of the Consumer Bankers Association, Richard Hunt, said the report is an important first step in recognizing how a duplicative and onerous regulatory environment harms banks, the economy, and consumers.“It is imperative to right-size regulation to better promote the strengths of the banking industry, which contribute to economic growth, access to credit, and consumer choice,” Hunt said. “We especially applaud Secretary Mnuchin and the Department for suggesting reforms to the CFPB’s governing structure, as CBA believes a bipartisan commission at the Bureau is paramount to creating long-term stability and certainty for the industry. In addition, we are also encouraged by the Department’s recommendation to provide a process over federal regulators to streamline regulatory efforts. We appreciate the Department’s report, as it offers pragmatic solutions in line with today’s economic needs.”The next step for the Treasury and Administration will be working with Congress, independent regulators, the financial industry, and trade groups to implement the recommendations the report defines, including changes to statutes, regulations, and supervisory guidance. Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] The Best Markets For Residential Property Investors 2 days ago Related Articleslast_img read more

Delinquencies Increase in Hurricane Impacted States

first_img Demand Propels Home Prices Upward 2 days ago 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. Delinquencies Increase in Hurricane Impacted States Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Why Homeowners are Losing Sleep Over Rising Debt Next: HUD Approves U.S. Virgin Islands Disaster Recovery Plan The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Delinquencies Increase in Hurricane Impacted States Demand Propels Home Prices Upward 2 days ago Serious delinquencies in Texas and Florida increased significantly, according to the Loan Performance Insights report released by CoreLogic on Tuesday. The report, which looks at foreclosure and delinquency activity reported in April 2018 found that the percent of loans 90 days or more delinquent or in foreclosure in these states more than doubled in April, compared with where they were in the Fall of 2017 when the hurricanes struck. The 90-day-plus delinquent or in-foreclosure rate has also quadrupled in Puerto Rico.”Delinquency rates are nearing historic lows except in areas impacted by extreme weather over the past 18 months, reflecting a long period of strict underwriting practices and improved economic conditions,” said Frank Martell, President, and CEO of CoreLogic. “Last year’s hurricanes and wildfires continue to affect today’s default rates.”At a national level though, the share of home loans transitioning from current to 30 days past due was the lowest for April since 2000. CoreLogic said that early-stage delinquencies were declined to 1.8 percent in April compared with 2.2 percent last year. The share of mortgages that were 60 to 89 days past due remained unchanged on a year-over-year basis at 0.6 percent, while serious delinquency rates, including loans in foreclosure, were slightly down from a year ago at 1.9 percent. The April 2018 serious delinquency rate was the lowest for that month since 2007 when it was 1.6 percent.“Job growth, home-price appreciation, and full-doc underwriting have pushed delinquency and foreclosure rates to the lowest point in more than a decade,” said Dr. Frank Nothaft, Chief Economist for CoreLogic.The report indicated that nationally, 4.2 percent of mortgages were in some stage of delinquency in April 2018. This represented a 0.6 percentage point decline in the overall delinquency rate compared with the same period last year when it was 4.8 percent.In April, the report revealed, foreclosure inventory rate was 0.6 percent, down a percentage point from 0.7 percent in April 2017. This compares with the lowest level of foreclosure inventory in June 2007.Learn more about the impact of hurricanes on housing:The Lingering Impact of Hurricane Maria on Puerto RicoHUD Approves Florida Disaster Plan—What You Need to Know Share Save Related Articles Tagged with: CoreLogic default Delinquency Foreclosure Hurricane Irma Maria Serious Delinquencycenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago July 10, 2018 2,011 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Radhika Ojha CoreLogic default Delinquency Foreclosure Hurricane Irma Maria Serious Delinquency 2018-07-10 Radhika Ojha Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Foreclosure, News Subscribelast_img read more

Redefining Property Values

first_imgSign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago November 20, 2018 1,951 Views Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Amazon HQ2 HOUSING Long Island City Matthew Haines Median Home Price propertyshark Virginia Amazon’s announcement to equally split its second headquarters between Long Island City of Queens (LIC) and Crystal City in Arlington, Virginia, certainly affected the specific neighborhoods as well as surrounding areas. The retail giant’s move to LIC and Arlington has got people on both sides of the spectrum. Some are excited and others remain skeptical about Amazon’s impact on New York City’s residential market. According to a PropertyShark report, there is a noticeable spike in listing views traffic. Views on Long Island City listings page increased by 198 percent, almost triple the views since November 12 after the announcement. On account of easy access to “Amazon Island City” and a heightened increase in homes in surrounding areas, the rate at which property prices grow is expected to accelerate in LIC, the report indicated. Astoria and Sunnyside are among neighborhoods where home prices will take off, while areas along Metro Line 7 will boom as well. Long before Amazon’s descent on LIC, the neighborhood experienced a surge in interest as well as home prices, with a median home price saw an increase of 35 percent in the last five years. Over the years, LIC has attained the tag of the most expensive and refined neighborhoods in Queens from the industrial district that it used to be. “Prices along various subway lines are going to rise by 25-40 percent. Neighborhoods that have been stable for generations are going to get gentrified and existing residents pushed out,” said Matthew Haines, real estate investor and founder of PropertyShark.According to PropertyShark, in the last five years, median home sale prices increased 35 percent, reaching a peak of $435,000 in 2017 and year-to-date, the median sits at $350,000, a drop of about 20 percent. The median home price is more than likely to increase at a much faster pace and drive demand in the near future, the report noted. The report found that median home prices in Hunters Point and neighboring areas are expected to reach $1 million soon. Hunters Point, Sunnyside, and South Astoria will all see an increase in home prices, rents, and new developments. Median home prices in Hunters Point will reach $1 million in the near future from the current median of $875,000. Sunnyside and South Astoria boast medians of $390,000 and $650,000, respectively. Areas in Queens are geared up for growth along major thoroughfares, metro lines, and bus lines that provide direct access to LIC, the report indicated.  Neighborhoods further east in the borough are considered affordable compared to Queen’s pricey waterfront neighborhoods. Gentrification is likely to spread eventually to neighborhoods such as Jackson Heights, Elmhurst, Corona, and Downtown Flushing due to direct access to Long Island City from these areas. Brooklyn will also see an increase in prices with Greenpoint at a median home sale price that surpasses $1.1 million. The upward trend is likely to continue in Williamsburg at $940,000, Bedford-Stuyvesant at $770,000 and Clinton Hill at $800,000.While the discussions are ongoing about how positive the impact of Amazon in both the communities, there will certainly be an upsurge in rising rents, home prices and living costs leading to further gentrification and new developments, the report concluded. About Author: Donna Joseph The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Previous: Fannie Weighs in on Housing Next: Top 5 Cities for Housing 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] Servicers Navigate the Post-Pandemic World 2 days ago Redefining Property Values Amazon HQ2 HOUSING Long Island City Matthew Haines Median Home Price propertyshark Virginia 2018-11-20 Donna Joseph Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Redefining Property Values Subscribelast_img read more

Federal Agencies Propose Clarifications to Flood Insurance Rules

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Federal Agencies Propose Clarifications to Flood Insurance Rules June 29, 2020 1,416 Views Home / Daily Dose / Federal Agencies Propose Clarifications to Flood Insurance Rules Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Government, News  Print This Post Demand Propels Home Prices Upward 2 days ago Previous: Industry Reacts to Supreme Court’s CFPB Ruling Next: Servicers’ Concerns Over Forbearance Plans Flood Insurance housing market 2020 2020-06-29 Mike Albanese Share Save Related Articles About Author: Krista F. Brock Data Provider Black Knight to Acquire Top of Mind 2 days ago Five federal agencies are collaborating to clarify rules related to flood insurance requirements. The agencies released proposed revisions to an existing interagency document regarding flood insurance last week and are inviting comments on their proposal.The Interagency Questions and Answers Regarding Flood Insurance is a joint effort by the Board of Governors of the Federal Reserve, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency. The document was last updated in 2011.In 2015, the agencies issued a new rule to implement parts of the Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014. This rule is detailed in the proposed updates to the document.The agencies also noted that “over the years, the lending industry has requested that the Agencies provide additional guidance of flood insurance compliance issues on many occasions.”Also, during a review of regulations, the agencies received comments requesting more guidance on renewal notices for forced-plan insurance policies, flood insurance amount requirements, and requirements for tenant-owned buildings and detached structures.In addition to including the new rules based on the regulations from 2012 and 2015, the proposed changes to the document would reorganize the document in order to make it easier for lenders, servicers, regulators, and policyholders to find the sections pertinent to them.The agencies also aim to improve clarity in several areas in order to “help reduce the compliance burden for lenders.”The proposal includes new questions related to escrow of flood insurance premiums, requirements and exemptions for detached structures, and information on forced-placement procedures.The agencies proposed six new questions and answers regarding exemptions for detached properties. They would also include details of exemptions for state-owned properties and properties with loans for less than $5,000 and a duration of one year or less.While these exemptions apply, the agencies will also explain that borrowers may still purchase flood insurance, and “a lender may still require flood insurance as a condition of making the loan for purposes of safety and soundness, depending on its risk analysis.”The proposal also addresses the issue of flood insurance requirements during times when the National Flood Insurance Program (NFIP) is unavailable, stating that lenders may make loans without flood insurance coverage but “must continue to make flood determinations, provide timely, complete and accurate notices to borrowers and comply with other aspects of the Regulation.” Lenders are also urged to continue to manage risk appropriately when the NFIP is not available.The agencies also announced their intention to release a separate question and answer document for private flood insurance requirements. 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 Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. The Best Markets For Residential Property Investors 2 days ago Subscribe Tagged with: Flood Insurance housing market 2020 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

The Long Road Ahead for Default Servicing

first_img The Long Road Ahead for Default Servicing Subscribe Home / Daily Dose / The Long Road Ahead for Default Servicing in Daily Dose, Featured, Print Features Demand Propels Home Prices Upward 1 day 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. Share Save Demand Propels Home Prices Upward 1 day ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: Payment-Market Evolution Explained Next: Housing Market Forecast and Predictions for 2021 Editor’s note: This story originally appeared in the December edition of DSNews, out now.When COVID-19 reached and spread across U.S. soil, it shocked every sector of American industry. The default servicing business was no exception—albeit several high-level executives say its collective response was nothing short of exceptional. The pandemic sent servicing workforces and their customers, like the entire country, into an initial panic. Delinquency levels spiked, and the government changed rules on the fly. Health and federal agencies compelled brokers, agents, lending staff, and consumers alike to stay home.However, from that place of perturbation emerged new perceptions and processes. Looking back on 2020, there is enough concrete and anecdotal evidence to suggest that the housing market has been a bright spot in an economy tattered by a national health crisis. Leaders reacted to the global disaster by revolutionizing everything from how employees do their jobs to the homebuying process itself. Housing-finance professionals have swiftly implemented systems to address distressed borrowers. What they are building, they believe, is a foundation that can withstand anything the coming year throws their way.As 2020 becomes 2021, we find these captains of industry training for the marathon ahead.PANDEMIC PANIC ENSUESAmericans’ way of life changed in March 2020, as the global pandemic became the mortgage market’s most significant challenge since the 2008 financial crisis. At once, lenders had to shift focus from current projects to deliver organization-wide responses to the virus and its implications.For servicers like Bob Caruso, CEO at ServiceMac, “the first thoughts were focused on how to best support our employees, customers, and the mortgage servicing rights (MSR) owners.”Caruso and several other high-level executives say their companies had implemented, or at least were on track, for a more-digitized enterprise. When COVID-19 arrived, it forced them to swiftly transform large in-office staff to remote workforces and fast-track new rules and technologies.“The pandemic impacted my team and me dramatically,” Caruso said. “I had been hearing about the virus and the warnings, but I didn’t think it would get serious enough to close significant parts of the country and major sectors of the economy.”He says he initially was nervous about closing the office and shifting employees to work from home; however, the result exceeded his expectations.“Our technology, being new and cloud-based, has worked exceptionally well, and our employees have been outstanding. We have been able to excel as a company in every facet of our work. Our focus quickly shifted to hiring and training new employees to support our rapid growth and still maintain the same culture that has helped with our success.”Courtney Thompson, SVP Default Mortgage at Flagstar, says her bank had decided to push all available roles to remote work before the declaration of the national emergency. That move proved pivotal as the country commenced to close.Prior to Friday, March 13 (“Go figure,” Thompson quipped), Flagstar had undergone a full-scale initiative “to bring default servicing to our homes,” she said. In other words, Flagstar went remote in advance of the forbearance wave that hit in the following weeks.“Default is a human business,” she said. She says she felt fortunate that “our humans on the inside of our operation were home safe and positioned to help our humans on the outside, our consumers.”Tim Rood, Head of Industry Relations at SitusAMC, says he had to “lean into data and analytics-driven processes like never before.”“Five-year strategic plans were collapsed into rapid development plans across entire enterprises to deal with a confluence of market events—record-low interest rates driving record-high loan production, social distancing impacting loan origination, processing, closing, and the need to have whole companies working remotely.”Those at the helm of major servicing businesses compared the pandemic’s effects to those of other environmental calamities.“When the forbearance wave hit in mid-March,” Thompson said, “it can only be likened to a large-scale-natural disaster in every state, county, city across the country.”Michael Keaton, Chief Servicing Officer at Shellpoint Mortgage Servicing, echoed that.“The challenges related to COVID-19 are similar to those servicers faced with floods, hurricanes, fires, and the like. However, the key difference is instead of a regional event impacting a segment of your loan population, COVID-19 impacted homeowners all over the country.”Thompson says her role shifted, immediately, “to the trenches, to ensure that we could keep up with the consumers, the quickly issued changes in the law, the need to recruit and train a new workforce, and beginning, early, to plan for what was to come.”SHIFTS IN BORROWING BEHAVIORWhile the country collectively dealt with rising turmoil, pundits saw some striking trends.“First, people were expecting the market to crater,” said Ralph Defranco, Chief Economist at Arch MI, “And it did, sort of, at first it did, and everyone was watching the news every day, but now, it’s come back stronger than ever.”He believes there are two major contributing factors, including record-low interest rates, thanks to the Federal Reserve, he says. The other is the fact that the home has never been more critical than it is now.“People have recognized the need for more space, more comfort, and they’re out there looking for a different housing situation.”… Read the rest of the feature on p. 46 of the December edition of DS News, available here.  Related Articles December 7, 2020 14,080 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago DS5 2020-12-07 Christina Hughes Babb About Author: Christina Hughes Babb Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: DS5 Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago  Print This Postlast_img read more

FHFA, Treasury Announce Changes to GSE Regulations

first_img Related Articles The Best Markets For Residential Property Investors 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 January 15, 2021 13,327 Views The Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury (Treasury) announced amendments to the Preferred Stock Purchase Agreements (PSPAs) which will allow GSEs Fannie Mae and Freddie Mac​ to continue to retain earnings until they satisfy the requirements of the 2020 enterprise capital rule, the FHFA announced in a press release.”Today’s agreement that allows Fannie Mae and Freddie Mac to continue retaining earnings is a step in the right direction, but more hard work remains,” FHFA Director Mark Calabria said. “Capital at Fannie Mae and Freddie Mac protects the housing finance system and taxpayers. Retained earnings alone are insufficient to adequately capitalize the enterprises. Until the enterprises can raise private capital, they are at risk of failing in the next housing crisis.”Additionally, Treasury has agreed that the GSEs can raise private capital and exit conservatorship once certain conditions are met. To facilitate GSE equity offerings, Treasury has committed to work to restructure its investment in both Fannie and Freddie.​National Association of Realtors (NAR) President Charlie Oppler issued a statement in response to the FHFA announcement.”While NAR appreciates administration efforts to ensure market stability and liquidity during the ongoing pandemic, the nation’s largest trade association is concerned these changes would limit the enterprises’ ability to appropriately serve the overall U.S. housing market as intended, most notably as it relates to first-time buyers, those in underserved communities, investor properties, and second home purchases,” the NAR press release read.The GSEs buy loans from lenders and bundle them into securities, explains the NAR notice, which they sell to investors with a guarantee. However, in order to back these guarantees, they need loss-taking capital.NAR says it has long supported GSE reforms and continues to advocate for beneficial changes made since the 2008 financial crisis.According to NAR, yesterday afternoon, the trade association brought together policy, academic and financial market experts to discuss the benefits of NAR’s market utility option for consumers, taxpayers, and markets.”Any considerations to limit financing on second homes, investor properties or entry-level borrowers will have a negative impact on borrowing costs and a broader impact on the rental market,” Oppler continued. “This would only undermine the GSEs’ ability to fund many of their charter duties and appropriately serve U.S. taxpayers and consumers.” Sign up for DS News Daily Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Christina Hughes Babb Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: Senior Housing Wealth Reaches Record $7.82 Trillion Next: The Week Ahead: Servicing Challenges in Uncertain Times Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post 2021-01-15 Christina Hughes Babb Home / Daily Dose / FHFA, Treasury Announce Changes to GSE Regulations Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 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. Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago FHFA, Treasury Announce Changes to GSE Regulationslast_img read more