2014 Home Sales Depend on Strong Job Market

first_img March 20, 2014 1,299 Views Share Save Growing optimism in the housing purchase market stems from faith in a strengthening job market nationwide. Recent snapshots of the national housing economy by Fannie Mae and Zillow cite job growth as a spur for more robust markets, particularly in western states, where new jobs and competition for houses are escalating home prices.Now Freddie Mac has joined the chorus. In its latest Economic and Housing Market Outlook, released Wednesday, the agency expects home sales to grow along with wages this year, despite a still-tough job market in most sectors. Freddie is projecting a 3 percent rise in home sales and a 20 percent rise in new home construction in 2014, which the agency expects to level out to a 5 percent overall growth.Freddie’s latest analysis paints a complex picture, particularly when measured against job figures from 2007, the last time the national job market was considered solid for the entire calendar year. Compared to then, most job sectors, particularly manufacturing and construction, are down. In February, construction employment was 5.9 million, 1.5 million less than December of 2007, according to Freddie.But these sectors are on a steady rise, with construction at about 80 percent of its 2007 peak and manufacturing at about 90 percent, according to the report. Freddie’s numbers bolster Fannie Mae’s February report showing that construction jobs and the number of new houses built are up since the beginning of the year. And these factors are key to a healthier housing market, said Frank Nothaft, VP and chief economist at Freddie Mac.”In order to have solid home sales in 2014 we need to see continued improvement in the labor market,” Nothaft said. “Manufacturing and construction are the two sectors that have been slowest to recover. With increased economic growth, these two sectors should start to improve.”Considerable growth, according to Freddie, is happening in mining and office jobs, but particularly in education and health services, which has grown by 2.4 million jobs since 2007. Despite substantial progress, however, the labor market remains below its potential, and unemployment is stubbornly hanging on at 6.7 percent.But these numbers are not as black and white as they may at first seem. While it may look bad that the employment-to-population ratio dropped from 62.7 percent to 58.8 percent in February, annual wages measured that same month grew by 2.5 percent, which is well above consumer price inflation.Also, according to Freddie, about 40 percent of this drop-off was driven by baby boomers who have retired between December 2007 and February 2014. This may open the door for more jobs as boomers continue to leave vacancies in the workforce.”With more jobs, wage growth should continue to accelerate, giving American households much needed income to help sustain the emerging purchase market,” Nothaft said. Bureau of Labor Statistics Economic and Housing Market Outlook Freddie Mac job market Labor 2014-03-20 Scott Morgan Demand Propels Home Prices Upward 2 days ago Previous: Survey: Small Banks Frustrated by Dodd-Frank Next: DS News Webcast: Friday 3/21/2014 Subscribe Sign up for DS News Daily in Daily Dose, Featured, Headlines, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Scott Morgan The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago 2014 Home Sales Depend on Strong Job Market 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. Related Articles Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / 2014 Home Sales Depend on Strong Job Market  Print This Post The Best Markets For Residential Property Investors 2 days ago Tagged with: Bureau of Labor Statistics Economic and Housing Market Outlook Freddie Mac job market Laborlast_img read more

Loan File Data – Truth or Fiction?

first_img Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily in Daily Dose, Featured, News, Technology Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Loan File Data LOS 2017-08-03 Brian Fitzpatrick Home / Daily Dose / Loan File Data – Truth or Fiction? Previous: Credit Score Facelift Next: Fannie Mae On Top About Author: Brian Fitzpatrick Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Demand Propels Home Prices Upward 2 days agocenter_img As President and CEO of LoanLogics, Inc., Brian Fitzpatrick oversees all operations of the company. He is a demonstrated leader with particular expertise in mortgage technology and business process outsourcing solutions. Mr. Fitzpatrick has raised industry-wide awareness of how technology plays a key role in the production and measurement of loan quality and performance. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Loan File Data – Truth or Fiction? Tagged with: Loan File Data LOS The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago August 3, 2017 1,467 Views Lenders often consider their loan origination system (LOS) to be the “single source of truth” because it is the place all the loan file information is stored. They presume the LOS knows all—but is that really the case?Not too long ago, my wife and I refinanced our home. While we were reviewing some documents, I noticed my name was misspelled on one of them as “Bryan.” Certainly, that’s not how I spelled it when filing out the application. The only way it got there was by somebody retyping it, and the only reason we saw it was because there was nothing in place to catch the error and correct it. In other words, the LOS couldn’t tell the difference.There’s little wonder that an LOS has trouble keeping everything straight. Lenders collect an incredible amount of information from the consumer—assets, income, credit information, bank account data, taxes—and then they collect even more information from third parties. It all goes into the loan file. When you’re gathering information from so many sources, in so many different formats, and through so many different methods, it’s not a matter of if the data starts to cross contaminate, but how bad the eventual contamination will become.There is one perception that digital mortgages will solve this problem. But this is a myth, too. In fact, it can create an even bigger mess. Many lenders are installing new “borrower portals” that make applying for a mortgage faster and easier, yet they are still using older technology on the back end. Some lenders are even taking all the information the borrower submits and retyping it into the LOS, which is another chance for information to be lost in translation.Every LOS vendor says their system does not let these issues happen. Having viewed loan files from every system out there, I can say with certainty that not one is immune from data problems or inconsistencies.Our industry will go a long way towards solving its data integrity issues if we stop talking about the LOS as the “single source of truth” and acknowledge that 100 percent accuracy is hard to come by in the mortgage world. However, it is best attained when lenders leverage technology capable of verifying and validating data that goes into the LOS throughout the process and electronically cross-validates data from multiple source documents and third-party systems and data sources. In this way, data contamination doesn’t spread and borrowers can have trust in the process.The LOS cannot determine what is true on its own. If lenders care about data quality, they should leverage additional technology to create loan files free from fiction.  Print This Post Subscribelast_img read more

AllyConnect Offers Free Compliance Documentation Management

first_imgSubscribe The Best Markets For Residential Property Investors 2 days ago September 14, 2017 1,190 Views AllyConnect Offers Free Compliance Documentation Management Servicers Navigate the Post-Pandemic World 2 days ago 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] Share Save Demand Propels Home Prices Upward 2 days ago Compliance 2017-09-14 Brianna Gilpin Previous: Chronos Offers Data Recently Excluded from Credit Reports Next: RES.NET Offers New Data Portal The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Brianna Gilpin Demand Propels Home Prices Upward 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Is Rise in Forbearance Volume Cause for Concern? 2 days ago Related Articles Home / Featured / AllyConnect Offers Free Compliance Documentation Management in Featured, News, Technology Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Compliance AllyConnect, a vendor and compliance management technology solution for the Property Preservation and REO space, recently announced it is offering free compliance document management and annual updating automation tools for all registered users of the service.“Regulations require that the entire supply chain to maintain the proper documentation. There is such a significant compliance gap for the 10’s of 1000’s of BOTG (boots on the ground) Property Preservation contractors, that offering the necessary resources to allow all vendors to maintain their own compliance documentation for free was not only needed, but the right thing to do,” said Steve Salimbas, CEO of Agios World Wide, Inc. the developer of the AllyConnect SaaS technology.The product offers more than 70 tools and functions that are user-friendly for any size company, this is welcomed news as the challenges of compliance management have been well documented. “Vendor managers will now have the necessary transparency to know their contractor networks from top to bottom are both qualified and highly compliant, while also creating efficiencies to reduce costs. Even when a contractor network is many levels deep,” the Agios CEO said.AllyConnect believes that compliance is a continually evolving matter and a hot button topic in the financial industry and that this product will help all stakeholders succeed in achieving mission critical processes and regulatory requirements.last_img read more

How Banks Meet Community Needs

first_img Previous: GSEs Launching Uniform Mortgage-Backed Securities Next: Home Equity Among Retirees  Print This Post The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / How Banks Meet Community Needs Subscribe How Banks Meet Community Needs The Community Reinvestment Act (CRA) is headed for changes by The Treasury and will relook at reinvestments of banks towards supporting community needs through initiatives such as fair mortgage lending, affordable housing development, small business lending, and similar activities. In the light of these proposed changes to the CRA, the California Reinvestment Coalition (CRC) conducted a survey of California banks and CRC member organizations to understand the impact of the CRA and its role in building a community where banks meet community needs.“Our research shows that the CRA plays an important role in ensuring that banks meet community credit needs. Banks should do more to fulfill their responsibilities to the communities they operate in,” said Paulina Gonzalez, Executive Director of the CRC. “The Treasury Department should encourage banks to work more closely with community groups, for example, to require banks to develop written CRA plans that outline win-win reinvestment strategies.”The survey found that banks that responded to CRC had lent over $27 billion towards community development in 2016 and had over $31 billion in total CRA activity. However, when it came to meeting communities’ needs in California, banks with above $50 billion in deposits statewide lagged behind their smaller peers.CRC-negotiated agreements led to more reinvestment in communities, the survey indicated, with banks that signed such agreements reinvesting twice as much in communities as banks without such agreements.The survey also included responses from communities, non-profits and other groups serving those communities. This group of respondents said that they appreciated CRA’s role in its ability to direct resources towards their work and to dialogue with banks and regulators about how banks could best meet their community’s needs. In terms of where banks could improve their outreach, this group of respondents said that they would like to see banks better fulfill their responsibilities towards communities. 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 28, 2018 1,673 Views The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Demand Propels Home Prices Upward 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago 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 ago Tagged with: Affordable Housing Banks Communities Community Reinvestment Act CRC HOUSING Mega Banks mortgage Mortgage Lending The Treasury Share Save in Daily Dose, Featured, Government, Journal, News Affordable Housing Banks Communities Community Reinvestment Act CRC HOUSING Mega Banks mortgage Mortgage Lending The Treasury 2018-03-28 Radhika Ojha About Author: Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Public Policy Think Tank Discusses Future of GSEs

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Public Policy Think Tank Discusses Future of GSEs Subscribe Demand Propels Home Prices Upward 2 days ago July 19, 2018 4,830 Views 2018-07-19 Kristina Brewer Share Save in Daily Dose, Featured, Government, Headlines, Journal, News Demand Propels Home Prices Upward 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Kristina Brewer Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Thursday at the American Enterprise Institute (AEI), a public policy think tank dedicated to defending human dignity, expanding human potential, and building a freer and safer world, panelists gathered to discuss the question surrounding the expansion or possible reduction of Fannie Mae and Freddie Mac’s activities.The two-hour discussion consisted of panelists expressing concerns over declining creditworthiness of new homebuyers, with many of whom are spending more than 43 percent of their incomes servicing debts. Also on the docket was a debate concerning the future of the debt-to-income limit implemented by the Bureau of Consumer Financial Protection in 2014, from which the GSEs were exempt. Though certain participants hesitated to endorse a quick end to the GSE’s government conservatorship, the entire panel came to the agreement that 10 years after the GSEs entered conservatorship, implementing housing finance reform is still necessary.The event description listed the GSE’s as being “under the total control of the Federal Housing Finance Agency” with no capital and a dependency on their de facto owner, the U.S. Treasury. The proposed discussion included topics such as the competitive power these organizations strip from private companies operating in this shared space, as well as the types of regulatory approvals that should be required before Fannie and Freddie “exploit these powers in new lines of business,” and if a future capital regime can address the market distortions Fannie and Freddie otherwise create. The panel consisted of Ed DeMarco of the Housing Policy Council, Mike Fratantoni of the MBA, independent mortgage consultant Tom LaMalfa, Norbert Michel of the Heritage Foundation, Mike Stegman of the Milken Institute, and Edward J. Pinto of AEI, with moderator Alex Pollock of R Street Institute.View the panel’s discussion below, or see the event presentation here.<span data-mce-type=”bookmark” style=”display: inline-block; width: 0px; overflow: hidden; line-height: 0;” class=”mce_SELRES_start”></span> Public Policy Think Tank Discusses Future of GSEs  Print This Post The Best Markets For Residential Property Investors 2 days ago Previous: Kraninger: ‘Will Focus Solely on Serving the American People’ Next: More Young Americans Joining the Real Estate Industry Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Kristina Brewer is the Editorial Assistant of Publications for the Five Star Institute, including DS News and MReport magazine. She is a graduate of the University of North Texas (UNT), where she received her Bachelor of Arts in English with a concentration in rhetoric and writing and a minor in global marketing. During this time, she served as Director of Philanthropy in the national women’s fraternity Zeta Tau Alpha, of which she is an alumna. Her passion for philanthropy continued after university when she was an intern at Keep Denton Beautiful, a local partner of Keep America Beautiful, where she drove membership, organized events, and led social media campaigns. Brewer honed her writing at the North Texas Daily, UNT’s student-run newspaper where she wrote about faculty, mentorship, and student life. Brewer also previously worked at Optimus Business Plans where she helped start-ups create funding proposals, risk assessments, and management plans. Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily last_img read more

Holding Off For the Holidays

first_img Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Holding Off For the Holidays About Author: Radhika Ojha Fannie Mae and Freddie Mac have announced a moratorium on households facing evictions for the holidays. The government-sponsored enterprises (GSEs) said that while the holiday suspension would apply to eviction lockouts on their real estate owned homes, they would not affect other pre- or post-foreclosure activities.This nationwide suspension on eviction lockouts between December 17, 2018, and January 2, 2019, would mean that while legal and administrative proceedings for evictions would continue during this period, families would be allowed to stay in their home.”We believe it is important to extend the timeline of help for struggling borrowers during the holidays,” said Jacob Williamson, VP of Single-Family Real Estate at Fannie Mae. “We encourage homeowners who may be struggling with their mortgage or facing possible foreclosure to reach out to Fannie Mae or your servicer to get help. We want to help pursue those options whenever possible.”The GSEs said that for disaster-affected areas, servicers should continue to follow the guidelines issued by them earlier this year (after the California wildfires) for “single-family mortgages related to homes and borrowers in disaster-affected areas.””As we have done in past years, we are suspending evictions from Freddie Mac-owned homes to help provide families with a greater measure of certainty during the upcoming holiday season,” said Yvette Gilmore, Freddie Mac’s Vice President of Single-Family Servicer Performance Management.Freddie Mac, in its announcement, also encouraged borrowers who were facing financial challenges or disaster hardships to contact their mortgage servicer to explore the options provided by the GSE for such events.Apart from the GSEs, local governments are also taking steps to help households facing eviction remain in their homes for the holidays. Continuing a decade-long trend in Lake County, in the Chicago metropolitan area, the county’s Sheriff John Idleburg issued a moratorium on all evictions until January 6, 2019, according to a report by the Chicago Tribune.“The moratorium is only temporary and will allow families to remain together in their homes during the holiday season, which I believe is important,” Idleburg said in an announcement Monday, the Tribune reported. Subscribe Sign up for DS News Daily Share Save Tagged with: Borrowers Chicago Tribune Disaster Eviction Fannie Mae Foreclosure Freddie Mac lock-out Servicers  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Holding Off For the Holidays Previous: Mortgage Cadence and Radian MI Collaborate Next: Delaying the Dream of Homeownership Borrowers Chicago Tribune Disaster Eviction Fannie Mae Foreclosure Freddie Mac lock-out Servicers 2018-12-10 Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Foreclosure, News Data Provider Black Knight to Acquire Top of Mind 2 days ago December 10, 2018 3,393 Views last_img read more

Is Modular Construction the Way of the Future?

first_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Is Modular Construction the Way of the Future? Share Save Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Construction Costs FullStack Modular housing costs Modular Homes Multifamily Construction Multifamily homes New Home Construction Prefab Construction 2019-03-14 Krista Franks Brock 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 in Daily Dose, Featured, Journal, Market Studies, News, Technology Demand Propels Home Prices Upward 2 days ago Previous: The Industry Pulse: Updates on Sagent, ComplianceEase, and More Next: Experts: Government Shouldn’t Insure Against Natural Disasters Tagged with: Construction Costs FullStack Modular housing costs Modular Homes Multifamily Construction Multifamily homes New Home Construction Prefab Constructioncenter_img About Author: Krista Franks Brock Sign up for DS News Daily March 14, 2019 3,326 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago There’s something a little different about the red and grey 32-story apartment building in Brooklyn overlooking Barclays Center. The bright modern residencies at 461 Dean weren’t constructed where we see the shining building today; they were constructed in a factory, transported to the site, and assembled. The building is the world’s tallest modular tower.Modular housing is also popping up in other parts of the country. Google reportedly spent $30 million for 300 modular homes in the San Francisco Bay area, and Microsoft is reportedly spending $0.5 billion for modular housing in the Seattle area.While modular construction—in which structures are created offsite in manufacturing facilities and transported and assembled later—makes up only a small minority of today’s construction, it is gaining notice as a potential solution to today’s housing shortage and high housing and construction costs.Despite some experimentation in the past, including a development by famous architect Frank Lloyd Wright, modular housing makes up just 2 percent of single-family home construction and 3 percent of multifamily construction today, according to an article in the National Review.Today’s housing market is defined by high demand, low supply, and resulting high prices in many markets. Rising construction costs and a diminished construction labor force have contributed to the low housing supply. According to the National Review, “Last year alone, the United States fell 400,000 homes short of the total needed to keep up with population growth.”Looking ahead, the National Association of Home Builders expects construction to remain flat this year.Modular housing could help reduce construction time by half and construction costs by 10 to 20 percent. Instead of the nearly 22 separate types of professionals that contribute to traditional home construction, a smaller force of workers can build housing in a climate-controlled facility.“As housing prices grow farther out of reach for millions of Americans, the smaller budgets and faster building times of modular housing could be an affordability game-changer,” Hendrix stated in his article.However, modular construction companies face several challenges in creating and distributing their buildings. Unionized labor forces have not embraced modular housing construction. Acquiring the large upfront funds from lenders can be a challenge as well. The natural ebbs and flows of the real estate market can also be challenging for modular housing companies, which need continuity in demand to prosper.Another major challenge comes in the form of regulations. Across the country, there are about 93,000 different building codes, which vary by city and county, according to the National Review. Inspections for permits may need to take place in the manufacturing facility, which may be far from the city where the building will ultimately be located.Whether modular housing is the way of the future remains to be seen. The developer of 461 Dean, Forest City Ratner, is reported to have exited the modular home business after the completion of the tower, which faced several delays before completion. However, one of the developer’s former executives, Roger Krulak, acquired the factory used to construct 461 Dean and founded Full Stack Modular, a modular construction company with a self-stated “tech-centered approach to urban development.” Home / Daily Dose / Is Modular Construction the Way of the Future? 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. last_img read more

The Inverted Yield Curve—A Recessionary Red Flag?

first_img Servicers Navigate the Post-Pandemic World 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago  Print This Post Related Articles Questions around the possibility of a cyclical recession have been looming large over many economic sectors in recent months, including the U.S. mortgage market. On Friday of last week, that possibility loomed even larger as the three-month and the 10-year Treasury yields inverted for the first time since mid-2007.The Significance of a Yield Curve InversionWith the inversion coming on the heels of the Federal Reserve’s announcement that it was not planning further interest rate hikes this year. Combined with other concerns that an economic slowdown may be on the horizon, the inverted yield curve sent stocks plummeting, with Diane Swonk, Chief Economist at Grant Thornton, telling PBS News Hour that the inversion was “the straw that broke the camel’s back” for many investors.”Historically, an inverted yield curve is a significant sign that points to the development of an economic slowdown in the near to medium term,” said Five Star Global President & CEO Ed Delgado. “This latest development is another in a series of economic markers that support the possibility of a future recessionary cycle.”Ted Bauman, Senior Research Analyst and Economist at Banyan Hill Publishing, told DS News, “For forecasters, inverting yield curves have about the same significance as voodoo-cursed totems for followers of that religion. That’s because they have preceded the last seven official U.S. recessions. They are, therefore, not to be taken lightly.”Speaking of how the inverted yield curve will bring talk of a recession to the forefront, Tendayi Kapfidze, Chief Economist at LendingTree, said, “What’s often not discussed is the mechanism by which an inverted yield curve can lead to a contraction in the economy. By having longer-term debt return less than short-term debt, an inverted yield curve makes lending less profitable for banks as they borrow short-term and lend long-term. As lending becomes less profitable, banks tighten their standards and extend less credit. This leads to less leverage in the economy, which results in less spending and investment thus less growth.” Kapfidze pointed out that “the banks (and other lenders) are the transmission mechanism for the inverted yield curve to the broader economy, and that’s why the bank stocks were the first to react to the inverted yield curve. Thus, the yield curve is a recession indicator, though it does so with a significant lag of 18-24 months and needs to stay inverted for some time, say at least a quarter, to give a high confidence signal.”Speaking of the Fed, Bauman said, “In the current scenario, bond markets are also acutely aware of the fact that the Federal Reserve has ‘chickened out’ of its intention to liquidate its holdings of securities left over from the 2008-2009 financial crisis. By buying up long-term T-bills to push down interest rates, and absorbing near worthless collateralized debt obligations (CDOs), the Fed effectively ‘loaned’ financial markets $2.5 trillion during that period.” Bauman indicated that the enormous amount of liquidity has been the prime driver of the rise in U.S. stock valuations, which have reached unsustainable levels, since that time. The yield curve assumes great significance, Bauman noted “because it is based on demand and supply in the one market that most closely approximates the textbook model of demand and supply—long-term treasury bills. Whereas short-term interest rates are set by the Federal Reserve, rates (yields) for the 10 year T-bill are set in the bond market. Bond traders are able to incorporate information almost instantly and use that to adjust their bids.”  According to Bauman, it is this interaction between the future demand for money and the excess supply of available money left over from the period of “quantitative easing” that is behind the inverted yield curve today.“If the stock market suffers a major correction as a result, they can thank the Federal Reserve,” he added.“Last week’s partial yield curve inversion following a ‘dovish surprise’ from the Federal Reserve is bearish for the stock market and that means investors should ‘remain defensively positioned,’” Michael Wilson, Morgan Stanley’s U.S Equity Strategist, told CNBC.Impact on the Mortgage and Housing MarketsAccording to a Gallup Poll, about 39 percent of Americans think the economy is slowing down, while 17 percent think we’re already in a recession or depression.Commenting on the impact of a yielding curve on the mortgage market, Bauman told DS News that the results are uncertain as of now. “On one hand, falling long-term interest rates are a major driver of falling mortgage rates. The average rate for a 30-year fixed rate mortgage has fallen from 4.4 percent on March 19 to 4.11 percent today. That’s a 6.6 percent drop in the rate in less than a week. If rates maintain that downward momentum, we can expect to see an uptick in mortgage applications.”On the other hand, falling rates, Bauman indicated, “must be assessed against potential recessionary conditions. If lenders perceive the likelihood of a recession—which is what the inverted yield curve is said to predict—lending standards may tighten, countering the effect of falling mortgage rates.”  “I, therefore, expect to see a short-term boost to the housing market, but whether this lasts depends on whether fears of an economic slowdown materialize,” Bauman added.Kapfidze said, “In terms of housing, lower interest rates should be beneficial, but the tightening of standards we mention ed above works against this. So the outlook is quite unclear. In the near term housing will get a boost, but if the yield curve remains inverted and the recession narrative takes hold, home sales will likely weaken.”As reported in DS News last month, a Realtor.com article suggested that though some believe we will see a recession soon, the financial factors that helped instigate last decade’s crash are very different in the current scenario. “We’re at a record-low level of unemployment. The economy can’t stay here,” Hale said. She forecasts a recession beginning within the next two years. “This one will be mild,” Hale added, stating that lower long-term rates “could portend a recession,” but also “tend to mean lower mortgage rates which help boost buying power for homebuyers. Given the dearth of construction in this recovery, housing is likely to fare reasonably well during the next recession.””We’re just scared because of what happened last time. And that’s not what’s going to happen again,” said Lisa Sturtevant, a housing consultant and Chief Economist at Virginia Realtors, the state’s real estate association. Addressing home prices in the wake of a possible recession, economists say prices aren’t expected to plummet, although they may dip in more expensive markets. Overall, price appreciation will likely just continue to slow. A cause of worry, however,  in the wake of a recession is the shortage of housing. The pace of single-family home construction growth has recorded a decline from 9 percent in 2017 to about 3 percent in 2018. This is projected to decline further by 2 percent in 2019. Rent price growth is likely to slow with the exception of the luxury market, where landlords will have the most trouble finding tenants.Making its case as to why this time won’t be another 2008, an NPR article published in early January this year, stated that in 2008, recession not only caused complete chaos in the housing market but was directly caused by chaos in the housing market. This may have promoted the view that recessions and housing collapses are synonymous. The article also pointed out that “it was a unique case, and today’s housing market in many ways is the complete inverse of the housing market in the run-up to 2008.” The Week Ahead: Nearing the Forbearance Exit 2 days ago Housing Market Inverted Yield Curve Recession 2019-03-25 Donna Joseph Previous: OCC Shines Light on Outstanding Mortgage Debt Next: Where Young Millennials Are Buying Homes The Best Markets For Residential Property Investors 2 days ago The Inverted Yield Curve—A Recessionary Red Flag? in Daily Dose, Featured, Market Studies, News Tagged with: Housing Market Inverted Yield Curve Recession Servicers Navigate the Post-Pandemic World 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe About Author: Donna Joseph 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] Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 25, 2019 3,335 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Home / Daily Dose / The Inverted Yield Curve—A Recessionary Red Flag?last_img read more

Oakland Prohibits Questions About Criminal History on Rental Applications

first_img 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. Sign up for DS News Daily  Print This Post Tagged with: California Oakland renter Home / Daily Dose / Oakland Prohibits Questions About Criminal History on Rental Applications Oakland, California, is no longer allowing landlords to inquire about rental applicants’ criminal histories. The Oakland City Council passed the Oakland Fair Chance Housing Ordinance earlier this month, making it the first city in California to adopt such an ordinance. About 70 million Americans have criminal records, and many of them struggle to obtain housing and employment as a result of their record, according to an article in U.S. News and World Report, which stated that 80% of individuals who have served prison sentences later were denied housing as a result of their convictions. The law in Oakland applies to “nearly all” rental properties in the city with a few exceptions, according to the report. The first is that the rule does not apply to “landlord-occupied units.” Another exception is that affordable housing landlords may deny rental applicants who were convicted of manufacturing meth. Lastly, landlords do not have to rent to individuals on the federal sex offender list. The ordinance is already in effect, but landlords have a six-month “grace period” to adopt it, according to the San Francisco Chronicle. The nonprofit advocacy group, Prisoners with Children, has been advocating for years under its “Ban the Box” campaign to have criminal background questions removed from applications for employment, housing, public benefits, insurance, loans, and more. “I was born and raised in Oakland,” Lee “Taqwaa” Bonner, an advocate with Prisoners with Children said, according to an NBC Bay Area article. “I am employed in Oakland. I own and drive a vehicle in Oakland. However, I cannot live in Oakland based solely on my criminal record, which happened 30 years ago.”While the rule was unanimously passed by the Oakland City Council and is celebrated by advocates, not everyone was pleased with its passing. Wayne Rowland, president of the East Bay Rental Housing Association, reportedly said in an email to the East Bay Times, “As rental housing providers, we have a responsibility to provide a safe environment to residents and a huge part of that is knowing the background of each applicant.”While Oakland is the first city in California to adopt such an ordinance, it is not the only city in the nation to do so. Detroit, Chicago, and Minneapolis also have passed ordinances regarding criminal background checks for rental applicants, although theirs are not as comprehensive as Oakland’s, according to U.S. News and World Report. These cities allow landlords to perform background checks but only at the end of the application process, and landlords are only allowed to “consider more recent convictions,” according to U.S. News and World Report. Also, San Francisco, and Richmond, California, have laws regarding background checks for rental applicants, but they only apply to affordable or municipally-subsidized housing.  Oakland Prohibits Questions About Criminal History on Rental Applications February 18, 2020 1,913 Views The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Krista F. Brock Previous: Michael Bloomberg Proposes Fannie Mae, Freddie Mac Merger Next: Investors See Record SFR Appreciationcenter_img in Daily Dose, Featured, Market Studies, News Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago California Oakland renter 2020-02-18 Mike Albanese Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Florida Circuit Courts Ordered to Move Pending Foreclosure Cases

first_img Servicers Navigate the Post-Pandemic World 2 days ago Jane Bond is the Managing Partner of McCalla Raymer Leibert Pierce’s Florida Litigation Group. Bond has more than 30 years’ litigation experience, with 26 years devoted to business and real estate litigation related to the mortgage lending and servicing industries. The Florida Litigation Group handles both commercial and residential litigation for clients throughout the state. Bond extends her expertise to teaching at training seminars, conferences, and continuing legal education courses on real property law and related topics. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Journal, News Tagged with: Jane Bond The Best Markets For Residential Property Investors 2 days ago Jane Bond 2021-04-12 Christina Hughes Babb Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: HARP Revamp Seen as Default Prevention Solution Next: Economic Recovery Drives Ongoing Forebearance Drop About Author: Jane Bond  Print This Post Related Articles Servicers Navigate the Post-Pandemic World 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Florida Circuit Courts Ordered to Move Pending Foreclosure Cases Sign up for DS News Daily On March 9, 2021, Florida’s Supreme Court issued Amendment 10 to the Comprehensive COVID-19 Emergency Measures for Florida Trial Courts. This administrative order was issued to create a new requirement for case management in certain civil cases, including foreclosures. The new section is entitled Case Management and Resolution.This new amendment requires the Chief Judges of each Florida Circuit Court to issue an administrative order directing the Circuit Court Judges to “actively manage their civil cases.” Every case is to be reviewed to determine if it is complex, streamlined, or general. Most foreclosure cases will be either a streamlined case or a general civil case.Every streamlined or general civil case will have a case management order issued that specifies deadlines for service of complaints and deadlines for adding new parties. There will also be discovery deadlines, pretrial motion deadlines, a mediation deadline, and a projected trial date. These deadlines are to be strictly enforced by the Judges.Starting May 28, 2021, the case management orders will be issued. The order directs all Judges to conclude litigation as soon as it is reasonably and justly possible to do so, to take charge of all cases at an early stage, to control the progress of the case until it is resolved, and to apply a firm continuance policy allowing continuances only for good cause shown. There was no exception for foreclosure cases in the order.Based on this order, an increase is expected in case management conferences scheduled by the Florida Courts and orders setting pending foreclosure cases for trial.  It is anticipated the Florida Judges will deny continuances and push the pending foreclosure cases to judgment and sale, even on cases impacted by the federal foreclosure moratoria or cases impacted by the new proposed CFPB rules.Florida Supreme Court Chief Justice Charles Canady commented on March 30, 2021 at a Florida Bar Virtual Town Hall meeting, when he said the of the new amendment, … the administrative orders are for “certain categories” of civil cases and will feature “aggressive case management.” People are going to have to understand that when they come to court … they need to be ready to go. If they’re not ready to do that, then they probably shouldn’t be filing a complaint … That’s with a high level of generality.”Some Florida Circuit judges are known to be proactive with moving their dockets regardless of federal investor moratoria or CFPB rules and regulations. Servicers will need to be ready to move forward with their foreclosure cases or be ready to voluntarily dismiss the cases. Remembering, upon voluntarily dismissal of a case, opposing counsel attorney fees will be due. This is a repeat of the same issues during the Great Recession, a backlog of cases and judges becoming more proactive to clear their dockets. Will history repeat itself? Most likely it will look a little different; only time will tell. The Best Markets For Residential Property Investors 2 days ago April 12, 2021 1,583 Views Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Florida Circuit Courts Ordered to Move Pending Foreclosure Caseslast_img read more