DS News Webcast: Monday 2/10/2014

first_imgHome / Featured / DS News Webcast: Monday 2/10/2014 Subscribe Is Rise in Forbearance Volume Cause for Concern? 2 days ago The Best Markets For Residential Property Investors 2 days ago The National Association of Home Builders’ latest reading of home prices, permits, and employment in markets nationwide suggest housing and economic activity has returned to 87% of pre-recession levels. In its February Leading Markets Index, the NAHB finds 58 out of nearly 350 markets have met or exceeded normal levels measured before last decade’s bubble.Commenting on the latest index, NAHB chairman Rick Judson said quote–Housing markets across the nation are continuing their slow and steady climb back to normal levels. In the coming months, Judson expects improvements in employment and consumer confidence to spur pent-up demand from potential borrowers.Ocwen Financial Corporation has had to shelve plans to purchase $39 billion in mortgage servicing rights after the New York Department of Financial Services moved to halt the sale. The company had been set to acquire the rights from Wells Fargo in a $2.7 billion deal, but the Wall Street Journal reports the sale was blocked as the regulator investigates allegations of abusive behavior toward homeowners. In a statement, Ocwen said it would continue to work closely with the agency to resolve concerns about its portfolio growth. Data Provider Black Knight to Acquire Top of Mind 2 days ago 2014-02-08 DSNews Related Articles Servicers Navigate the Post-Pandemic World 2 days ago DS News Webcast: Monday 2/10/2014 in Featured, Media, Webcasts Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days agocenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Previous: What’s Keeping Borrowers from Refinancing? Next: Housing Scorecard Details Progress, Examines San Francisco MSA Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago February 8, 2014 466 Views About Author: DSNewslast_img read more

GSE Quarterly Report Card Positive

first_img Servicers Navigate the Post-Pandemic World 2 days ago The Federal Housing Finance Agency (FHFA) released its Quarterly Performance Report of Fannie Mae, Freddie Mac, as well as the Federal Home Loan Bank System. Overall, the performance report was good, noting increases in Fannie and Freddie earnings, as well as substantial advances by the Federal Home Loan Bank System.The review covered the fourth quarter of 2013.Together, the two GSEs reported a combined full-year earnings of $132.7 billion, which benefited from the “release of the valuation allowance on deferred tax assets (DTA), rising national house prices, fewer delinquent loans, and proceeds from representation and warranty settlements and private-label mortgage-related (PLS) securities settlements,” the FHFA said.The Federal Home Loan Bank system had positive earnings as well, noting $2.5 billion of earnings in 2013. The yearly earnings were down slightly from the $2.6 billion reported in 2012. Notably, aggregate advances increased by 17 percent to $499 billion. As a percentage of total assets, advances increased to 60 percent.The FHFA found that delinquent loans continue to decline as government assistance programs continued to help afflicted borrowers. In Q4 2013, seriously delinquent loans declined 7 percent to approximately 674,000 loans. Yearly, seriously delinquent loans declined by 27 percent.Post-crash business was also up at Fannie and Freddie.”The post-conservatorship business (2009 to present) continues to become a larger piece of the total single-family portfolios as new business is added and homeowners take advantage of low interest rates to refinance existing loans. This post-conservatorship business now accounts for approximately 76 percent of the total single-family portfolio at both Enterprises,” the FHFA said.Delinquency rates for these new loans remain at or below one percent. However, seriously delinquent rates for loans originated between 2005 and 2008 remain high and account for roughly 15 percent of the single-family portfolios.The FHFA also found that PLS security settlements also helped Fannie and Freddie earnings, providing $2.2 and $5.5 billion, respectively.The fourth quarter of 2013 saw a drop in refinance activity from increasing mortgage rates. Home Affordable Refinance Program (HARP) actions dropped by 8 percent to approximately 893,000 in 2013. However, HARP volume as a percentage of total refinance volume remained relatively constant at 22 percent in 2012. Tagged with: Fannie Mae Federal Home Loan Bank System FHFA Freddie Mac GSE The Best Markets For Residential Property Investors 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Fannie Mae Federal Home Loan Bank System FHFA Freddie Mac GSE 2014-05-12 Colin Robins Share Save Servicers Navigate the Post-Pandemic World 2 days ago About Author: Colin Robins Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / GSE Quarterly Report Card Positive Demand Propels Home Prices Upward 2 days ago Related Articlescenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: HUD: Housing Improves; Still Needs Further Recovery Next: Survey: Home Price Change Expectations Fall Slightly in Daily Dose, Featured, Government, Headlines, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago May 12, 2014 824 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News’ sister site. Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago GSE Quarterly Report Card Positive Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

Mortgage Collectors Silence Homeowners with ‘Gag Orders’

first_img About Author: Colin Robins Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, Loss Mitigation, News Mortgage Collectors Silence Homeowners with ‘Gag Orders’ The Best Markets For Residential Property Investors 2 days ago May 22, 2014 967 Views Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: ZVN EVP Moderates Panel on Fast-tracking Foreclosures Next: Mortgage Rates Continue to Slip Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News’ sister site. The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Home / Daily Dose / Mortgage Collectors Silence Homeowners with ‘Gag Orders’ Share Save Demand Propels Home Prices Upward 2 days ago Tagged with: Bank of America Benjamin Lawsky Foreclosure Gag Order Loan Modifications Ocwen PNC UpdatedA curious piece of text is appearing in some homeowner’s loan modification agreements—by accepting a modification from the bank or non-bank servicer, the homeowner agrees to never publicly say, write, or post anything negative about the company doing the modification.As originally reported by Reuters, Ocwen, Bank of America, and PNC Financial Services Group are adding new terms to their modification contracts to prevent homeowners from publicly disparaging the companies as part of a mortgage modification agreement.Essentially, the gag orders are being used when distressed homeowners use litigation to resolve foreclosure and loan modification cases, making the modification contingent upon a homeowner’s silence. The deal often extends to lawyers handling litigious cases on behalf of the injured parties.Reuters cited, “A 2013 report by the National Consumer Law Center found that servicers routinely lost borrowers’ paperwork, inaccurately input information, failed to send important letters to the correct address—or sometimes just didn’t send them at all.””These clauses can hurt borrowers who later have problems with their mortgage collector by preventing them from complaining publicly about their difficulties or suing, lawyers said. If a collector, known as a servicer, makes an error, getting everything fixed can be a nightmare without litigation or public outcry,” Reuters noted.According to the original report, the restrictive text is also now showing up when servicers grant regular modifications outside of the courtroom.These new requirements are creating problems for homeowners—and ire from regulators. New York’s Superintendent of Financial Services Benjamin Lawsky said he is investigating Ocwen’s use of these clauses.”Reports that Ocwen is imposing a gag rule for certain struggling homeowners—preventing them from criticizing the company—are troubling and deeply offensive,” said Lawsky in an emailed statement to Reuters. “We will investigate this issue immediately.”PNC’s vice president of external communications, Marcey Zwiebel, told Reuters that “these clauses are part of the consideration we receive for agreeing to settle the case. This helps to ensure that the discussion is not re-opened in public after the case has been settled.”Modifications still play an important role in the ongoing housing recovery. According to the U.S. Department of the Treasury, 1.3 million loan modifications have been completed under the Home Affordable Modification Program (HAMP). Servicers have completed an additional 5.6 million modifications.”The banks are attempting to hold our clients hostage with a provision they know we cannot agree to,” said University of Notre Dame law professor Judith Fox to Reuters, who runs a clinic for troubled homeowners and who has also petitioned the Indiana Bar Association over attempts to muzzle attorneys. “It is coercive and unethical.”Correction: The piece incorrectly over-generalized the use of non-disparagement clauses. Bank of America said, “We do not include non-disparagement clauses or releases of claims in normal modification agreements. Only when a customer is part of a negotiated settlement that provide additional consideration to the customer is a non-disparagement and related confidentiality clause considered, and in those cases it does not preclude the customer from filing suits on post-settlement issues.”  Print This Post Bank of America Benjamin Lawsky Foreclosure Gag Order Loan Modifications Ocwen PNC 2014-05-22 Colin Robins Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

BNY Mellon Cautions U.S. Supreme Court on RMBS Decision

first_img in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago  Print This Post Sign up for DS News Daily Share Save The Best Markets For Residential Property Investors 2 days ago BNY Mellon Lawsuits Mortgage-Backed Securities U.S. Supreme Court 2015-11-24 Brian Honea BNY Mellon Cautions U.S. Supreme Court on RMBS Decision Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: DS News Webcast: Tuesday 11/24/2015 Next: What is the Cost of Delaying the Foreclosure Process? Demand Propels Home Prices Upward 2 days ago Subscribe Related Articles November 24, 2015 1,241 Views center_img The Week Ahead: Nearing the Forbearance Exit 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 Bank of New York Mellon has issued a warning to the U.S. Supreme Court predicting disaster for the residential mortgage-backed securities market if the nation’s highest court overturns a Second Circuit Court ruling that the bank was not liable for losses incurred by investors as a result of defective securities, according to a report from Law360.In a filing earlier in November, BNY Mellon asked the Supreme Court not to review a decision by the Second Circuit Court of Appeals from December 2014 which found that the mortgage-backed securities in question were not protected under the 1939 Trust Indenture Act (TIA). A group of union pension funds led by the Retirement Board of the Policemen’s Annuity and Benefit Fund of the City of Chicago asked the Second Circuit court to reverse that decision in September 2015, which overturned a district court’s decision that permitted the pension fund to sue BNY Mellon for failing to perform its duties as a trustee on 26 trusts with about $30 billion in balances.The trusts in question contain pools of mortgages serviced by Countrywide Financial, which was acquired by Bank of America in 2008 and has since cost that bank billions of dollars in legal fees and settlements regarding its RMBS practices.The pension funds’ lawsuit suit claims that BNY Mellon failed in its duties as trustee with the securities because it did not intervene when Countrywide failed to perform its duties as servicer, which include reviewing loan files, repurchasing bad loans, or transferring mortgage notes to BNY Mellon. The suit alleges that BNY Mellon was negligent in its duties because it did not ensure that Countrywide performed those duties.A district judge ruled in 2012 that the pension funds would be allowed to bring claims on 26 out of 530 trusts held by BNY Mellon which amounted to an original principal balance of approximately $424 billion. Two years later, that decision was later overturned by the Second Circuit Court of Appeals.The pension funds allege that reversing the Second Circuit Court’s decision and allowing them to sue the bank would improve the RMBS market by improving trustee oversight of the bonds, which would lift the confidence of investors. BNY Mellon disputed that claim in its brief filed with the Supreme Court earlier this month, saying that reversing that decision would force the bank to rewrite contracts worth “trillions” that were believed to be exempt from the TIA at the time they were created. BNY Mellon said in its brief that “[N]othing could be more unsettling to investors than a ruling that, many years after the fact, retroactively changed the terms of contracts governing trillions of dollars worth of investments.” Home / Daily Dose / BNY Mellon Cautions U.S. Supreme Court on RMBS Decision Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: BNY Mellon Lawsuits Mortgage-Backed Securities U.S. Supreme Court Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Nearly Half of Foreclosures Wrapped up in Five States

first_img in Daily Dose, Featured, Foreclosure, News Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago As foreclosure numbers continue their downward spiral, the data showed that almost half of the nation’s completed foreclosures for the 12-month period ending on April 30, 2016, were locked up in five states, according to CoreLogic.Florida, Michigan, Texas, Ohio, and California combined for approximately 186,000 completed foreclosures during the year-long period ending in April, according to CoreLogic. This number represented more than 40 percent of the 461,000 completed foreclosures nationwide for the 12-month period that ended April 30.The number of 12-month completed foreclosures dropped by about 14 percent year-over-year in April, from 537,000 down to about 461,000.Florida has traditionally led the way in completed foreclosures but has seen a dramatic decline in that category just in the last year alone. Approximately 106,000 foreclosures were completed in Florida for the 12-month period ending April 30, 2015. The 66,000 completed foreclosures in Florida for the 12 months ending April 30, 2016, represent about a 40 percent decline year-over-year.Completed foreclosures over 12 months declined in Michigan, Texas, Ohio, and California year-over-year, but not near as substantially as in Florida. Michigan dropped from 49,000 to 47,000; Texas declined from 33,000 to 27,000; Ohio dropped from 28,000 to 23,000; and California declined from 27,000 to 23,000.The foreclosure inventory in Florida also saw the most dramatic year-over-year decline of any state in April. While five states had declines of 30 percent or higher, Florida led the way with a decline of 37 percent with a foreclosure inventory rate of 2.0 percent. The national average for April was 1.1 percent, the same level as in October 2007 before the crisis, according to CoreLogic.Black Knight Financial Services reported in May that Florida was one of three states (along with New York and New Jersey) that held about one-quarter of the nation’s non-current inventory, which includes both homes in foreclosure and homes that are 90 days or more past due on monthly mortgage payments (Florida had 145,000). Black Knight estimated that at their current rate of decline, despite their elevated numbers, the non-current inventory numbers in Florida will normalize sometime in mid-2018 around the same time as non-current inventory nationwide. completed foreclosures CoreLogic 2016-06-15 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago June 15, 2016 1,144 Views About Author: Brian Honea 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. Previous: FHFA: Here’s What HAMP Borrowers Facing Resets Can Do Next: Fed Opts Out of Rate Hike For Now The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Nearly Half of Foreclosures Wrapped up in Five States The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Sign up for DS News Daily Tagged with: completed foreclosures CoreLogic Nearly Half of Foreclosures Wrapped up in Five States Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Ginnie Mae MBS Outstanding Issuance Approaches $2 Trillion

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Home / Daily Dose / Ginnie Mae MBS Outstanding Issuance Approaches $2 Trillion in Daily Dose, Featured, Government, Headlines, Journal, News  Print This Post Sign up for DS News Daily Ginnie Mae MBS Mortgage-Backed Securities 2018-02-15 David Wharton Demand Propels Home Prices Upward 2 days ago Tagged with: Ginnie Mae MBS Mortgage-Backed Securities The Best Markets For Residential Property Investors 2 days ago About Author: David Wharton Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: FEMA Aid for Some Displaced Puerto Ricans Running Out Next: The Industry Pulse: Updates on Mr. Cooper, Black Knight, and More … Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Ginnie Mae MBS Outstanding Issuance Approaches $2 Trillion February 15, 2018 4,309 Views Servicers Navigate the Post-Pandemic World 2 days ago On Thursday, Ginnie Mae—the government-owned corporation that attracts global capital into the housing finance system—announced that issuance of its mortgage-backed securities (MBS) totaled $36.41 billion in January 2018. This brings Ginnie Mae’s total outstanding principal balance to $1.924 trillion, up from January 2017’s total of $1.786 trillion. Ginnie’s MBS issuance for FY 2018 to the end of January totaled $153.419 billion.Ginnie’s January’s issuance included $34.611 billion of Ginnie Mae II MBS and $1.795 billion of Ginnie Mae I MBS. Together, they “provided access to $36.834 billion in capital for single-family home loans and $1.403 billion for multifamily housing.”The Fed is expected to continue working to shrink the agency’s balance sheet, including MBS issued by Fannie Mae, Freddie Mac, and Ginnie Mae. However, some believe even more drastic changes are needed for the GSEs. Ginnie Mae Acting President Michael R. Bright spoke before the House Financial Services Committee in November 2017, during which he discussed a paper he co-wrote with FHFA Acting Director Ed DeMarco in September 2016. It proposed reconstituting Fannie Mae and Freddie Mac as lender-owned mutuals and removing Ginnie Mae from the auspices of the Department of Housing and Urban Development, instead converting Ginnie into a standalone government corporation like the FDIC, “with authority over its own budget, hiring, and compensation.”However, Bright also had praise for Ginnie. “At a very high level, the Ginnie Mae wrap works because we do two things effectively,” Bright said. “First, we are transparent about our rules and our processes with our investors. And second, we work hard to police our program.”That second promise came into play last week, when Ginnie Mae notified a small number of issuers in the multi-issuer mortgage-backed security (MBS) pool to take steps to address churning in its MBS program. “Churning” is a process where a lender solicits an existing borrower to refinance their current mortgage for a better offer with a different or the same investor. Some lenders use this practice to refinance a loan multiple times and generate profits for lenders.“We have an obligation to take necessary measures to prevent the lending practices of a few from impairing the performance of our multi-issuer securities, and thus raising the cost of homeownership for millions of Americans,” said Bright. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save The Best Markets For Residential Property Investors 2 days agolast_img read more

Ask the Economist with Daryl Fairweather

first_imgHow did studying with Nobel Prize recipient Richard Thaler, who is hailed as the Father of Behavioral Economics, impact your outlook on market behavior, and specifically the housing market? On the mortgage side, data is creating more transparency about rates and fees, as well as shining a light on what has been an opaque process for consumers. Data and technology will help streamline the approval and underwriting process, as well as the home closing—we can now do fully digital home closings. Share Save Rachel Williams attended Texas Christian University (TCU), where she graduated with Magna Cum Laude with a dual Bachelor of Arts in English and History. Williams is a member of Phi Beta Kappa, widely recognized as the nation’s most prestigious honor society. Subsequent to graduating from TCU, Williams joined the Five Star Institute as an editorial intern, advancing to staff writer, associate editor and is currently the editor in chief and head of corporate communications. She has over a decade of editorial experience with a primary focus on the U.S. residential mortgage industry and financial markets. Williams resides in Dallas, Texas with her husband. She can be reached at [email protected] Servicers Navigate the Post-Pandemic World 2 days ago Editor’s note: This interview originally ran in the December issue of DS News, click here to start reading. Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Big data is just a buzzword, unless it is used to improve service and deliver value to consumers. At Redfin, we use data to help buyers and sellers understand the market so they can make better decisions. A good example of this is Redfin Compete Score. It analyzes a vast amount of data about the real estate market to help consumers understand how much competition there is for homes right now and what it will take to win a home in their neighborhood. The Best Markets For Residential Property Investors 2 days ago Behavioral economists start from the premise that people make mistakes and don’t always act rationally. From 2004–2006, home prices went up 50 percent, when historically home prices rise about 1 percent faster than inflation. A behavioral economist would interpret such a dramatic rise in prices as the result of a psychological phenomenon like herding behavior, which is when people mimic the actions of a larger group, even when the larger group is acting irrationally. Herding behavior leads to asset bubbles because people are less likely to bet against the herd. A traditional economist would start from the premise that people act rationally and would only be willing to pay 50 percent higher home prices if they determined the home is 50 percent more valuable. It’s valuable to consider both perspectives when analyzing the housing market. Oftentimes, there is a rational explanation for such fluctuations, but it’s good to have some humility and consider all of the ways that people make mistakes when buying and selling homes. Every homeowner I spoke with wanted to pay their mortgage, wanted to keep their home, and desperately wanted help. Listening to homeowners facing foreclosure and learning about the individual and economic consequences of their choices made me want to learn more about how people’s choices shape our economy and what can be done to improve people’s choices and ultimately, people’s lives.I think the mortgage industry has an important role to play in giving people the opportunity to own their own home. Most people consider homeownership to be a huge financial milestone and have an emotional attachment to their home. It’s incredibly important that people understand how their mortgages work and the risks involved in taking on debt. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Daryl Fairweather HOUSING mortgage Redfin 2018-12-14 Rachel Williams You worked with the Federal Reserve in Boston, interviewing people who lost their homes due to the financial crisis. What did you most take away from this experience? How did it affect your outlook on the mortgage industry? December 14, 2018 2,114 Views When mortgage interest rates go up, monthly payments go up for homebuyers taking on a mortgage to pay for a home. People who are deciding whether to rent or own are going to be comparing their monthly mortgage payment to rents, and more people are going to decide that renting is a better option. Homeowners who have great rates may be more hesitant to sell and get a new mortgage. For homeowners who do sell, they are going to have to lower their price, if they want to increase the number of people touring and making offers on their home. Home builders are going to have to build more affordable homes to attract more potential buyers. Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Before joining Redfin in October, Daryl Fairweather served as a Senior Behavioral Economist for Amazon, leading a team of analysts and economists who worked on improving employee performance and engagement. Earlier in her career, she worked as both an economist and an analyst for companies such as Intensity Corporation, Morgan Stanley, and the Federal Reserve Bank of Boston. Fairweather holdsa Ph.D. in economics from the University of Chicago and a bachelor’s degree from MIT. The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Ask the Economist with Daryl Fairweather Fairweather spoke to DS News about the value of her mentorship by Nobel Prize winner Richard Thaler, how her study of behavioral economics will inform her new role at Redfin, and what she took away from her work at Amazon. With prices rising and mortgage rates increasing, how will this affect those attempting to sell their homes, as well as homebuyers’ strategies? How will the industry respond as a whole? Previous: JMA Launches New Solution for Borrower Outreach Next: CoreLogic’s Solution to Streamline Mortgage Loan Process What is the intersection between big data and customer service, and how will the advent of big data alter the mortgage industry? What will change as technologies become more ubiquitous? The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Daryl Fairweather HOUSING mortgage Redfin Demand Propels Home Prices Upward 2 days ago Related Articles How did working as a Senior Economist with Amazon for two years prepare you for working with Redfin? Is the transition from working for a major e-commerce and cloud-computing company like Amazon very different from working in real estate brokerage? Ask the Economist with Daryl Fairweather Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago How does behavioral economics provide a perspective on the housing market that other approaches can’t? Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily At both companies, I have used my knowledge of economics and psychology to interpret data and help people make better data-driven decisions. At Amazon, my focus was on delivering internal research to Amazon’s leaders so they could make more informed business decisions. At Redfin, my focus is on sharing insights to everyone interested in buying or selling homes. One exciting part of my job at Redfin is the opportunity to talk with our real estate agents around the country who are often the first to identify trends that may take weeks or months to be reflected in the data. Subscribe Economics is ultimately about how people make decisions. The macroeconomy is made up of individual people buying and selling goods and services, and people aren’t perfect. People make mistakes. People are emotional. People often don’t fully understand the consequences of their decisions. Behavioral economics takes all of this into account. The housing market is a perfect example of how human behavior impacts economics. For example, in a cooling housing market, home sellers are slow to react. They will look at what their neighbor’s house sold for a few months ago and feel like they should get the same price, or an even better one. Home sellers have a hard time seeing things from the buyer’s perspective; the buyer doesn’t care what home prices were a few months ago, they are looking at what’s on the market right now and trying to get the best possible deal. That’s why we are seeing so many price drops. Sellers are slowly learning how the market has changed. About Author: Rachel Williamslast_img read more

Calabria: “FHFA Is Absolutely Necessary”

About Author: Radhika Ojha Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Home / Daily Dose / Calabria: “FHFA Is Absolutely Necessary” On Thursday, the Senate Banking Committee conducted a hearing on the nomination of Dr. Mark Calabria as Director of the Federal Housing Finance Agency(FHFA) along with the nominations of Bimal Patel, of Georgia, to be an Assistant Secretary of the Treasury; Todd M. Harper, of Virginia, to be a Member of the National Credit Union Administration Board; and Rodney Hood, of North Carolina, to be a Member of the National Credit Union Administration Board.The Trump administration announced Calabria’s nomination to head the FHFA in December. He is currently the Chief Economist to Vice President Mike Pence. If confirmed, Calabria would have significant influence over the housing finance market at the FHFA.Opening the proceedings for the hearing, Sen. Mike Crapo, Chairman of the Banking Committee said, “FHFA can also play an important role in helping us move toward a more sustainable housing finance system facilitated by an engaged and strongly capitalized private sector.””All the nominees today, if confirmed, have the opportunity to improve American lives, they can make it easier for families to buy homes with mortgages,” said Ranking Member Sen. Sherrod Brown during his opening remarks.While his prepared remarks didn’t mention the current administration’s goal of the privatization of the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, Calabria addressed these issues during his discussions with the Committee. Calabria said that if he was confirmed as Director of the FHFA his role would be to “carry out the clear intent of Congress, not impose my own vision.”Giving an outline of what his priorities would be if confirmed, Calabria said that a number of critical elements were needed in reform such as a “greater need for competition.” He said the current FHFA mandate was clearly where “the regulator cannot make such changes.” As a result, he said, “The very broad changes that have to happen in the mortgage finance system have to be done by Congress.”Calabria said that if he was confirmed as the FHFA Director his objective would be to ensure the GSEs were, “well capitalized, well managed, and well regulated.”He also clarified the reports on FHFA Acting Director Joseph Otting’s remarks on the privatization of the GSEs, saying that the remarks were made more to raise the morale of the staff at FHFA than anything else. “My read of what I believe he said was to convey a sense of urgency to the FHFA staff. What he referred to in the terms of me signing off was my longstanding loud support for housing finance reforms. I believe he was conveying to the staff through a pep talk that we will move forward,” Calabria said.Before his nomination for this post, Calabria told the committee that he was involved in conversations around December 2017 that allowed a $3 billion cushion for the GSEs and had supported the amendment of allowing a “modest capital buffer so that we would not have to force a draw, partly because of the impact of the tax reform or the deferred tax losses being held by the GSEs.”Addressing his views on the affordable housing goals Calabria said that his past concerns with affordable housing goals were in the context of “two large institutions with zero capital.” However, he added, “I do believe we can get to a spot where we can have risk-taking via affordable housing goals if we can have an appropriate regulatory structure that has capital backing those goals. I’m very concerned about any large financial institution where we push it to take an additional risk without the appropriate regulatory structure in place.”Clarifying his comments on getting rid of the GSEs in the past, he said that they were essentially pointed towards getting rid of the model of privatize gains and socialize losses. “I believe all large financial institutions need to be well capitalized more managed, more regulated, and I believe the GSEs were “none of the above” before the crisis. My concern is the fundamental model of the heads of Fannie and Freddie walk out with a lot of money while the rest of us get holding the bag. I want these entities to be good corporate citizens, I want them to be the model of how other corporation should want to behave.”Answering a question on the role of the FHFA if the housing market faced another crisis, Calabria said, that it was appropriate for the FHFA to offer assistance to affected borrowers and that “we should recognize and applaud the efforts of Ed DeMarco for the wide-based forbearance that was done by FHFA during the past crisis.” However, he stressed that the agency needed to “approach different borrowers differently” and that the mortgage market should set an expectation for those who can pay, should pay and “focus our efforts on those who can’t pay and need assistance.””FHFA is absolutely necessary,” Calabria said while answering a question on why he wanted to take up this job, despite his past remarks. “In fact, I want to raise the stature of FHFA. I remember how the employees at its predecessor felt and their inability to stand up and be able to do effective financial regulation. I’m committed to seeing turning FHFA into a world-class regulator.”He also gave his views on the 30-year fixed-rate mortgage saying that it was important to have the 30-year rate and that he intended to keep it that way.Click here to view the full testimony. Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Tagged with: Banking Senate Committee Fannie Mae FHFA Freddie Mac GSEs Homes HOUSING Mark Calabria The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago February 14, 2019 1,484 Views 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. Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save in Daily Dose, Featured, Government, News Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Banking Senate Committee Fannie Mae FHFA Freddie Mac GSEs Homes HOUSING Mark Calabria 2019-02-14 Radhika Ojha Previous: What Amazon’s NY Farewell Means for the Housing Market Next: Ask the Economist with Mark Boud  Print This Post Calabria: “FHFA Is Absolutely Necessary” read more

Powell Signals Rate Cuts in the Cards

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Powell Signals Rate Cuts in the Cards  Print This Post About Author: Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Powell Signals Rate Cuts in the Cards Sign up for DS News Daily Tagged with: Business Federal Reserve House Financial Services Committee HOUSING Interest rates Investment Trade Jerome Powell, Chairman of the Federal Reserve has signaled an openness to rate cuts during the upcoming meeting of the Federal Open Market Committee (FOMC).In his semi-annual testimony to the House Financial Services Committee on Wednesday, the Fed Chair said that though the economy remained strong, “crosscurrents, such as trade tensions and concerns about global growth, have been weighing on economic activity and the outlook.”Rate Cuts Coming Up?He said that while jobs, wage growth, and consumer spending remained strong in the second quarter of 2019, growth in business investment “seems to have slowed notably, and overall growth in the second quarter appears to have moderated.”Another cause of concern for the economy was the slowdown in fixed investment that may reflect concerns about trade tensions and slower growth in the global economy. “In addition, housing investment and manufacturing output declined in the first quarter and appear to have decreased again in the second quarter,” Powell said.Some other economic issues that needed to be addressed, according to Powell, included stagnation of middle and lower incomes, low levels of upward mobility for low-income households, and the long-term effects of rising federal debt.He also signaled that the Fed was relooking at their stance on monetary policy, indicating a rate cut in the cards during the upcoming FOMC meeting. “In our June meeting statement, we indicated that, in light of increased uncertainties about the economic outlook and muted inflation pressures, we would closely monitor the implications of incoming information for the economic outlook and would act as appropriate to sustain the expansion,” he said. “Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened.”Digging InPowell also addressed recent remarks by President Donald Trump on the Fed’s monetary policy stance.Bloomberg recently reported that the President had compared the Fed to “a stubborn child,” and said that if the Fed “knew what it was doing” it would cut rates. He had also announced his intentions to nominate two potentially dovish members to the Fed, either of whom “might be a Fed chair pick for Trump when Powell’s term ends in 2022, assuming the president wins reelection next year,” according to the Bloomberg report.Answering a question by Maxine Waters, Chairwoman of the House Financial Services Committee on what he would do if he “got a call from the President telling you that you are fired and to pack up and go,” Powell said, “I wouldn’t do that.”He added, “The law clearly gives me a four-year term and I intend to fully serve the term.”Trade TalkHe also addressed the Fed’s stance on the ongoing trade tensions while answering a question by Rep. Carolyn Maloney saying that no one should interpret what he said about trade headwinds as in any way a criticism of trade policy. “We do not play a role in assessing or criticizing the trade policy, it is not something assigned to us. We react in principle to anything that affects our ability to achieve the core mandate goals assigned to us by Congress, which could call for a policy response,” he said. Powell will give his semi-annual testimony before the Senate Banking Committee on Thursday at 10 a.m. EST.Click here to read the Fed Chair’s testimony. Previous: Foreclosures in Western U.S. a Cause for Concern Next: Is Renting Really Such a Bad Idea? 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. The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days agocenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, News Business Federal Reserve House Financial Services Committee HOUSING Interest rates Investment Trade 2019-07-10 Radhika Ojha July 10, 2019 4,007 Views Subscribelast_img read more

Homeowners Content With Pandemic Purchases

first_img About Author: Eric C. Peck The Best Markets For Residential Property Investors 2 days ago Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Share Save Related Articles Data Provider Black Knight to Acquire Top of Mind 1 day ago 4 days ago 321 Views Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 1 day ago Demand Propels Home Prices Upward 1 day ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Journal, Market Studies, Newscenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: The Importance of Assessing Weather-Related Risk Next: Widespread Desire to Relocate Could be Waning Sign up for DS News Daily Home / Daily Dose / Homeowners Content With Pandemic Purchases Subscribe Homeowners Content With Pandemic Purchases Data Provider Black Knight to Acquire Top of Mind 1 day ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago According to a new Realtor.com survey, nearly three-quarters of people who bought homes during the pandemic are content with their purchase, with many stating they should have made the move sooner.Among the 1,000 surveyed who made a home purchase over the past 12 months during the pandemic, 71% felt buying was a good decision, and 75% said their new home meets their needs.”Most of us spent more time at home during the pandemic than ever before, so it’s no surprise that it changed what many people want from their homes and neighborhoods, and created a greater sense of urgency to find a home that satisfied those needs,” said George Ratiu, Senior Economist for Realtor.com. “With the number of available homes for sale in short supply, buyers didn’t have many choices over the past year, or a lot of time to consider their options in a very competitive market. However, as our survey shows, pandemic buyers generally feel good about the choices they made, and while the homebuying process itself is stressful, new homeowners feel their new homes meet their needs and do not regret the choices they made.”With the increase in remote work opportunities over the past year, more home seekers looked to expand their living space to accommodate their new work situation and their children’s remote schooling needs. More than half (55%) of those surveyed found a new home that is exactly what they need for working or schooling from home.When asked how they felt about their new surroundings, more than 70% of new homeowners were “happy,” while 45% of new homeowners wish they had moved sooner, and only 19% say they should have waited.The survey found that three-quarters of those surveyed were planning to buy prior to the onset of COVID, while the remaining 25% decided to purchase because of the pandemic.“With pandemic buyers in many regions having to do more of their home search virtually and the need to make quick decisions, buyer’s remorse could have been a common outcome,” said the study.Less than one-third of respondents said they wished they’d spent more time on their home search before buying, and nearly half (48%) did not feel rushed or pressured into making a homebuying decision. They also didn’t feel as if they overpaid, with 61% of those surveyed reporting that the purchase price of their new home was either at or under their original budget.”Buying a home is the biggest financial decision most people make and, while there’s pressure to move more quickly, especially today, it’s not a decision you want to make lightly,” said Lexie Holbert, home and living expert at Realtor.com.Click here for more on Realtor.com’s “Pandemic Homebuyers Are Happy With Their Homes.” George Ratiu Lexie Holbert pandemic Realtor.com short supply 2021-05-26 Eric C. Peck Tagged with: George Ratiu Lexie Holbert pandemic Realtor.com short supplylast_img read more