Economic Growth Slows as GDP Expansion for Q4 Falls Short of Economists’ Predictions

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Bureau of Economic Analysis Federal Reserve GDP U.S. Economy Bureau of Economic Analysis Federal Reserve GDP U.S. Economy 2015-01-30 Tory Barringer The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Share Save U.S. economic growth pumped the brakes in 2014’s final months, falling off by nearly half compared to the quarter prior, according to a government estimate.In a first-look report, the Bureau of Economic Analysis (BEA) reported that gross domestic product (GDP) expanded at an annualized rate of 2.6 percent in 2014’s fourth quarter, sharply down from 5.0 percent growth in the third quarter.Economists had projected an annualized increase of 3.2 percent.According to BEA, the slowdown mostly came from a rise in imports coupled with a decline in exports, a downturn in government spending, and decelerations in nonresidential fixed investment.Those weaknesses were offset by an upturn in private inventory investment and a pickup in consumer spending as falling gas prices left Americans with more discretionary income. The government estimated that consumer spending—a major portion of U.S. economic activity—increased at a rate of 4.3 percent in Q4 compared to 3.2 percent the months prior.Residential fixed investment, a partial measure of housing’s contribution to the economy, also grew at a faster pace, advancing 4.1 percent compared to an increase of 3.2 percent in Q3.The latest government update comes days after Federal Reserve officials released their January policy statement. In their announcement, policymakers described economic growth as “solid,” though a drop in inflation reinforced their view that they can remain “patient” in normalizing monetary policy.For the entire year, BEA estimates GDP rose 2.4 percent from 2013, a slight acceleration over the previous year’s growth rate as a first-quarter decline dragged the yearly average down.The bureau said the improvement reflected an acceleration in nonresidential fixed investment, a smaller drop in federal government spending than in 2013, and gains in private inventory investment, consumer spending, and state and local government spending.BEA’s second Q4 estimate, which will include additional measures, is set for release February 27. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, News Related Articles  Print This Postcenter_img About Author: Tory Barringer Subscribe Home / Daily Dose / Economic Growth Slows as GDP Expansion for Q4 Falls Short of Economists’ Predictions Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: Freddie Mac Portfolio Expands at Highest Monthly Rate in Five Years Next: Despite Slight Downturn, Consumer Sentiment Still at Highest Level in 11 Years Data Provider Black Knight to Acquire Top of Mind 2 days ago January 30, 2015 959 Views Economic Growth Slows as GDP Expansion for Q4 Falls Short of Economists’ Predictions Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington’s student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News’ sister publication, MReport, which focuses on mortgage banking news. The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

Nevada Senate Passes Bill to Amend ‘Super-Priority Lien’ Law

first_img Servicers Navigate the Post-Pandemic World 2 days ago About Author: Brian Honea Nevada Senate Passes Bill to Amend ‘Super-Priority Lien’ Law The Nevada State Senate passed a bill at the last minute just before the end its legislative session that revises the provisions of a law that allows homeowner’s associations (HOAs) to foreclose non-judicially on a residential home when the homeowner’s HOA dues become delinquent, according to the Nevada State Legislature.Nevada Senate Bill 306, a bi-partisan bill sponsored by Nevada State Senators Aaron Ford (Democrat) and Scott Hammond (Republican) in March, was approved late last week just before the legislative session ended on Sunday. The bill was created in response to the controversy created by a ruling handed down by the Nevada State Supreme Court last September that gave HOAs authority to attach “super-priority lien” status to a mortgage, this allowing them to extinguish a mortgage on a home where the owner is delinquent on HOA dues without going through the courts.HOAs claim the super-priority lien status is necessary because it forces banks to pay the delinquent HOA dues and not leave responsible HOA members footing the bill to keep the HOA’s infrastructure intact, according a report from the Reno Gazette-Journal. Banks and lenders that have suffered huge losses in some cases when HOAs have extinguished mortgages where the delinquent HOA dues amounted to a fraction of the balance on the mortgage claim that the super-priority lien law gives the HOAs too much power.Furthermore, the Federal Housing Finance Agency (FHFA) issued a warning in December to HOAs that attach super-priority lien status to mortgages, saying that such loans will not push mortgages backed by Fannie Mae and Freddie Mac into the secondary position because of the risk they pose to taxpayers while the GSEs are under the FHFA’s conservatorship. FHFA general counsel Alfred Pollard testified before the Nevada State Legislature Judiciary Committee in early April, backing SB 306.”By way of summary, FHFA does find that most of the provisions of SB 306 improve the situation for lenders and secondary market participants in Nevada and support common interest communities, while we continue to have concerns with other sections of the existing law and practices under that law,” Pollard said in his testimony.The bill requires an HOA to provide the mortgagee with a formal statement of the amount of the deficiency along with a breakdown of all charges that will allow the mortgagee to address the lien payment if the unit owner does not, thus giving mortgagees the chance to protect their position. Other provisions of the bill include requiring the foreclosure notice to be published in a “public place” such as a newspaper or a county website, and provide that if a payment is made to the HOA for the amount of the dues deficiency no later than five days before the foreclosure sale, then the HOA cannot legally extinguish the first lien.  In his testimony in April, Pollard called this a “prudent approach.”Currently, 22 states allow HOAs to attach super-priority lien status to mortgages.  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Foreclosures Homeowners Associations Nevada Super-Priority Liens 2015-06-01 Brian Honea Previous: Millennials Leading Revival In Urban Areas, According to Home Value Forecast Next: DS News Webcast: Tuesday 6/2/2015 Demand Propels Home Prices Upward 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Foreclosures Homeowners Associations Nevada Super-Priority Liens The Best Markets For Residential Property Investors 2 days ago June 1, 2015 7,574 Views center_img Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News Related Articles The Best Markets For Residential Property Investors 2 days ago Subscribe Home / Daily Dose / Nevada Senate Passes Bill to Amend ‘Super-Priority Lien’ Law Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Freddie Mac: Bright Future Ahead

first_img Servicers Navigate the Post-Pandemic World 2 days ago Freddie Mac: Bright Future Ahead The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Headlines Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Freddie Mac remains optimistic at the future of the housing market, despite dwindling inventory, rising home prices, and increased interest rates that would otherwise point the other way, according to their Outlook Report for the month of July.The report examines inventory shortages and the fall of residential construction, which has dropped 14 percent since year-end 2016, further deepening the inventory shortage. Although, Freddie notes that the lack of housing starts is not because there isn’t a market for it, or due to regulations or land costs, but rather rising costs of building materials and a shortage of skilled laborers. The number of skilled laborers returning to the workforce has still not hit its post-recession numbers, mostly due to increased enforcement of immigration laws and problems with coaxing millennials into the construction industry.It also notes that the number of open construction jobs has remained on the rise since the lowest point of the recession, and that as of May, total open construction jobs numbered around 154,000.  They still, however, expect the year-end housing starts to fall around 1.27 million.Freddie is confident that demand for housing will remain strong for the rest of the year, despite an expected 6 percent increase in home prices. Low mortgage rates should fuel the demand, which is expected to stay around 4 percent until the end of the year.”A decade after the Great Recession, the housing market is rebounding,” said Sean Becketti, Chief Economist for Freddie Mac. “House prices today are higher than they were at the peak in the summer of 2006, near-record-low mortgage rates have boosted housing demand, and sales volume is robust. The spoiler is the lean inventory of houses for sale. Nationally, just over five months of supply is for sale and hot markets are much tighter than the national average. So far, residential construction is not doing much to fill the gap.”In addition to this report, Freddie Mac recently announced it will be changing its requirements for Home Possible Mortgages, which includes Home Possible Advantage Mortgages—Freddie’s low downpayment mortgage options. As of November 1, 2017, the current 1 percent contribution requirement, before gifts or grants from the originating lender are allowed, will be raised to 3 percent.  Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Freddie Mac Housing Outlook Demand Propels Home Prices Upward 2 days ago About Author: Joey Pizzolato Sign up for DS News Daily Freddie Mac Housing Outlook 2017-07-27 Joey Pizzolato The Best Markets For Residential Property Investors 2 days agocenter_img Home / Daily Dose / Freddie Mac: Bright Future Ahead The Best Markets For Residential Property Investors 2 days ago July 27, 2017 1,212 Views Previous: Two Peas in a Pod Next: The Customer is Key Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles  Print This Post Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected] Subscribelast_img read more

Student Debt Up, Homeownership Down

first_img Demand Propels Home Prices Upward 2 days ago Tagged with: Student Debt Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Student Debt 2017-08-18 Brianna Gilpin It can seem overwhelming when realizing that getting a degree to make more money in the workforce can lead to student debt that you’re using your money on to pay off. It’s a vicious cycle. The Consumer Financial Protection Bureau recently released data that shows nearly half of school borrowers are bogged down with at least $20,000 of student debt—double what it was 10 years ago.Their research also found that more borrowers are taking out student loans later on in life with fewer individuals paying the loan down in five years. The record breaking student debt and the stress that comes along with it are spurring more employers to offer student loan repayment benefits to their employees—something that might also help with homeownership rates.The Fed released a study in July discussing the connection between student debt and homeownership. When debt loads increase and individuals paychecks aren’t big enough to cover it, home buying tends to go on the back-burner. The Fed reported that as much as 35 percent of the decline in young American homeownership from 2007 to 2015 is due to the higher student debt loads.To get a view of what might have been, the paper suggests that if tuition had stayed at 2001 levels, 360,000 additional American’s would have owned homes in 2015. That means about 2.9 million more 28- to 30-year-old homeowners. According to the CFPB, half of student borrowers are older than 34 when they begin to pay off their loans.“Since 2003, the percentage of borrowers starting repayment over the age of 34 has doubled, increasing from 25 percent to nearly 50 percent,” the report noted. “The study also found the percentage of consumers beginning repayment under the age of 25 has decreased from 30 percent to 15 percent.”The good news is companies are beginning to recognize that student debt can push its way into the rest of consumers’ financial lives, including getting a home.“Borrowers may save hundreds or thousands of dollars in interest payments over the life of a loan when employers prepay student debt,” it said. “For example, with a 10-year, $30,000 loan at 6 percent interest, an employer paying $100 a month will save the borrower more than $11,000 over the life of the loan.” August 18, 2017 1,441 Views Home / Daily Dose / Student Debt Up, Homeownership Down Previous: Economy in a Nutshell Next: Week Ahead: Ten-X EVP Talks Housing Bubble The Best Markets For Residential Property Investors 2 days ago  Print This Post Share Save Demand Propels Home Prices Upward 2 days agocenter_img 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] Student Debt Up, Homeownership Down About Author: Brianna Gilpin Governmental Measures Target Expanded Access to Affordable Housing 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 Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more

Reverse Mortgage-Backed Securities: Good News and Bad News

first_imgHome / Daily Dose / Reverse Mortgage-Backed Securities: Good News and Bad News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: HECMs HMBS home equity conversion mortgage-backed securities Home Equity Conversion Mortgages Reverse Mortgages Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post in Daily Dose, Featured, Journal, News, Secondary Market May 2, 2018 4,061 Views Share Save Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Reverse Mortgage-Backed Securities: Good News and Bad News Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: David Whartoncenter_img Related Articles Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Issuance of home equity conversion mortgage-backed securities (HMBS) rose to $1.2 billion in April 2018, according to a new report by New View Advisors, “a financial services firm advising clients on capital markets, product development and valuation, mergers and acquisitions, and asset investment strategies in the reverse mortgage industry.” That gave April the seventh highest monthly issuance level on record, according to New View Advisors, which bases their analysis on a combination of publically available Ginnie Mae data and other private sources.New View reports that the $1.2 billion issuance for April included over $542 million in highly seasoned pools, coupled with more than $260 million in tail pool issuance. The New View report states, “The supply of highly seasoned, unsecuritized HECM loans is a rapidly melting iceberg, but it’s a big iceberg. Fannie Mae still has about $25 billion in HECMs on its books, years after ceasing its HECM loan purchases.”However, New View reports that the lower principal limit factors (PLF) for that were implemented for HECMs this fiscal year continue to drive down HMBS volume. “The supply of recently originated unsecuritized HECMs originated at the old PLFs is essentially exhausted,” states the report, “allowing the full effect of the new PLFs to hit hard. Higher interest rates will not help either, as they generally require lower PLFs.”The production of new original loan pools totaled $401 million in April, continuing the downward trend. For perspective, original loan pool production for March was $419 million. The months preceding March totaled $604 million (February), $657 million (January), and $747 million (December 2017). Total HMBS issuance for March was $626 million, the lowest monthly level since September 2014.April HMBS issuance was divided between 63 original pools and 57 tail pools.New View explains, “Original pools are those HMBS pools backed by first participations in previously uncertificated HECM loans. Tail HMBS issuances are HMBS pools consisting of subsequent participations. Tails are not from new loans, but they do represent new amounts lent. As we noted last month, tail HMBS issuance can generate profits for years, helping HMBS issuers in challenging periods like the long winter of discontent ahead.”The FHA’s Home Equity Conversion Mortgage reverse mortgage program allows homeowners to withdraw some of the equity in their home. These HECM loans can also be pooled into HECM mortgage-backed securities within the Ginnie Mae II MBS program. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago HECMs HMBS home equity conversion mortgage-backed securities Home Equity Conversion Mortgages Reverse Mortgages 2018-05-02 David Wharton Previous: Fed Weighs in on Interest Rates, Inflation Next: Affordability Issues Not Sparing Current Homeowners David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Homeowners Making the Best of Their Nests

first_img Demand Propels Home Prices Upward 2 days ago Previous: The See-Saw of Home Sales and Inventory Next: The Industry Pulse: Updates on Nationstar, Auction.com, and More June 14, 2018 2,183 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Baby Boomers Generation X HomeAdvisor Millennials remodeling silent generation Whether a minor refresh or a major redo, tons of homeowners seem to be sparing no expense to spruce up their spaces. In the last 12 months alone, they’ve doled out an average $6,649 on remodeling and home improvements per household, according to HomeAdvisor’s just-released 2018 True Cost Survey, which surveys current national trends and spending in the fixer-upper sector.Nor does this tendency toward homeowners improving their existing homes look to be changing anytime soon. Nearly two-thirds of U.S. homeowners anticipate paying as much or more for improvements in the coming 12 months over the past 12 months, HomeAdvisor reports.The generation that’s really going gaga for upgrading their digs? Millennials, the study says. This group not only completed the most home-related projects per household in the past 12 months—72 percent, 42 percent, and 18 percent more than the silent generation, baby boomers, and Gen Xers, respectively—but five in every six homeowners plan to ante up as much or more money on improvements in the coming 12 months, HomeAdvisor reports. Oh, and they’re also not shying away from kitchen and bath refurbs: Millennials are twice as likely as baby boomers to make over these rooms.As for the group that’s plunked down the most dough for dwelling improvements in the past 12 months, that No. 1 ranking goes to baby boomers. They’ve spent 32 percent, 14 percent, and 10 percent more to spiff up their shelters than millennials, Gen Xers and the silent generation, respectively.Across the entire spectrum, homeowners are opting to remodel rather than selling their house and moving to another one, HomeAdvisor found. Eighty percent plan on remaining in their existing residences and half are mulling a remodel. The main impetus behind remodeling? “Aesthetics,” the survey says, followed by “improved comfort” and “added value.”Interior painting, landscape installation, bathroom remodeling, flooring installation, and exterior staining and painting projects crown the list of projects homeowners are contemplating to complete in the next 12 months.No matter what shape it takes, the trend doesn’t show any signs of letting up, HomeAdvisor Chief Economist Brad Hunter contends. “Ultimately, I believe we’ll see continued vigor for home renovations, and increased home improvement spending, for many years to come,” he said. “And when it comes to millennial influence, we’ve only just begun to scratch the surface.” Share Save Home / Daily Dose / Homeowners Making the Best of Their Nests Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img in Daily Dose, Featured, Journal, Market Studies, News Sign up for DS News Daily About Author: Alison Rich Homeowners Making the Best of Their Nests  Print This Post Alison Rich has a long-time tenure in the writing and editing realm, touting an impressive body of work that has been featured in local and national consumer and trade publications spanning industries and audiences. She has worked for DS News and MReport magazines—both in print and online—since they launched. Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Baby Boomers Generation X HomeAdvisor Millennials remodeling silent generation 2018-06-14 Alison Rich Related Articles Subscribelast_img read more

The Future of Financial Regulation

first_imgHome / Daily Dose / The Future of Financial Regulation Demand Propels Home Prices Upward 2 days ago About Author: Krista Franks Brock Demand Propels Home Prices Upward 2 days ago The Future of Financial Regulation Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. Brookings Institute Bureau of Consumer Financial Protection Federal Reserve HOUSING mortgage Randal Quarles Stress Test 2018-11-11 Krista Franks Brock Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img  Print This Post The Best Markets For Residential Property Investors 2 days ago Tagged with: Brookings Institute Bureau of Consumer Financial Protection Federal Reserve HOUSING mortgage Randal Quarles Stress Test Data Provider Black Knight to Acquire Top of Mind 2 days ago As the Bureau of Consumer Financial Protection considers changes to its ability-to-repay rules and the Federal Reserve proposes changes to its stress test and capital reserve requirements, concerns and criticisms arise from both sides of the regulatory spectrum. On one side, some view these changes as a positive but perhaps insufficient step toward addressing what they view as burdensome regulations. On the other side are those decrying these proposals as a step toward unhinged deregulation that will lead toward predatory practices and a possible financial crisis.These themes were discussed in an event titled, “The Future of Financial Regulation,” that took place Friday at the Brookings Institute.During his keynote presentation, Randal Quarles, Vice Chairman for Supervision at the Federal Reserve Board, explained that the proposed changes to the Fed’s stress test are “intended to increase both the transparency and efficiency” of the tool and that the tests “will and should evolve as we continue to learn from this management tool.”Instead of placing a uniform capital reserve requirement for all financial institutions in a particular bracket, Quarles supports more “dynamic” capital reserve requirements that are risk-sensitive and tailored to each institution.When asked how he responds to those who say the Fed isn’t doing enough to address perceived burdensome regulations, he said that he believes the proposal is “a move in the right direction, and I think it’s significant simplification of the regime.”He pointed out that while large financial firms currently have to meet 24 separate capital-related requirements, the new proposed rule reduces these to 14 requirements.As to those who believe the Federal Reserve is going too far in relaxing standards for financial institutions, Quarels said, “I do think, when looked at fairly, what we are doing is very justified recalibration as opposed to relaxation.”He emphasized that the Federal Reserve views the countercyclical capital buffer is “a financial stability tool” and not a “macroeconomic dampener.”The issue of over- versus under-regulation of financial institutions, as well as the theme of transparency, were also central in a panel discussion following Quarels’ remarks.Randall Guynn, a renowned bank regulatory expert and head of the Financial Institutions Group at Davis Polk & Wardwell, LLP, complimented Quarels’ commitment to “transparency, simplicity, and efficiency.”However, Kathleen Day, professor at the Carey Business School at Johns Hopkins University, discounted this praise, saying she’s heard these keywords before. She expressed extreme concern the “deteriorating standard” of “lowering capital standards,” “weakening of the Volcker rule,” and the Bureau of Consumer Financial Protection’s movement to change the ability-to-repay rule.“Reach for your wallet when you hear these things,” she told the audience, suggesting that current proposals will lead toward consumer abuses and another financial downturn.However, H. Rodgin Cohen, Senior Chairman at Sullivan & Cromwell, LLP, took another standpoint.As for whether consumer abuses could lead to a financial crisis, he conceded, “Here I agree 100 percent with Kathleen. The evidence is there. It could. There’s no question about it.”However, he continued: “But whatever the CFPB’s position may be, the bank regulatory agencies were not stripped of their authority to examine these institutions, and they are examining them as fully and comprehensively in the consumer area as they were two or three years ago, five years ago. So I think what Congress did is create a double level of protection.”He furthermore suggested, “It’s not surprising that there’s going to be flaws and errors or that the circumstances have changed.”He simply described the current shift in regulation as “a relatively comprehensive response to what has occurred in the past 10 years.” November 11, 2018 2,071 Views The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: MCT Moves to Secure Sensitive Borrower Data Next: Five Minutes With Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Government, News Subscribelast_img read more

Digitally Driven

first_img 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. Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Bank of America blockchain Borrowers Citizens Bank Lenders mortgage Servicing Technology 2018-11-08 Radhika Ojha November 8, 2018 1,785 Views Share Save Demand Propels Home Prices Upward 2 days ago Tagged with: Bank of America blockchain Borrowers Citizens Bank Lenders mortgage Servicing Technology Data Provider Black Knight to Acquire Top of Mind 2 days ago Digitally Driven Sign up for DS News Daily in Daily Dose, Featured, News, Technology Demand Propels Home Prices Upward 2 days agocenter_img Home / Daily Dose / Digitally Driven  Print This Post The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Cryptocurrencies recently celebrated the 10th anniversary of their invention. Cryptocurrencies ushered in a new way of doing business and made the world sit up and take notice of the technology it was built on—blockchain. For those who haven’t already heard about it, a blockchain uses a growing list of records called blocks which are linked using cryptography, making this technology a secure and safe way of transferring and saving data.While the technology has been around for some time, it has only been a few years since the housing and mortgage industries began to take notice of this technology as a way of streamlining and securing its operations and making it a part of the overall digital initiatives of lenders to reach and service their customers.Streamlining Processes”There are three key areas that digital should solve: efficiency of document gathering, more choice around the channel, and improved communication. We view digital as an opportunity to remove some of the friction in the mortgage process that customers have consistently voiced as areas where the customer experience could be better across the industry,” said Kathy Cummings, SVP Bank of America.”When we think about the efficiency of time, it’s not just the documentation process that digital simplifies. Digital allows us to create omnichannel experiences that allow customers to choose when, where, and how they engage with their lender so that they can select what channel is most efficient for them,” said Sonu Mittal, SVP and Head of Retail Lending at Citizens Bank.Blockchain, therefore, does play an important role in smoothening out the digital process for lenders. “One such use is for land titles,” said Shidan Gouran, CEO and President of Global Blockchain Technologies. “This does not only simplify property ownership, but it also minimizes the risks of fraud, especially in property transactions.””Digital has enabled more efficient document gathering where lenders can securely gather much of the information and documentation on a customer’s behalf. Customers no longer have to spend valuable time gathering and submitting the documents, which allows them to focus more time on other parts of the home buying process, like inspections and preparing for closing with their attorney and realtor,” Cummings said.Tech vs. TouchAccording to Gouda, while blockchain may have been around for a decade, it is only natural for the technology to take its time. “Remember how long the Internet took to evolve, and how rapidly it evolved once governments and major companies started using it? That is the phase blockchain is in now, and we are likely to see more mortgage and housing developments using it at an even more rapid pace in the next few years,” Gouran said.While blockchain may be evolving as a technology, there are many more digital options that lenders are combining with the human touch to reach out to their borrower base.”A customer who initiates an application via digital channel should be able to move seamlessly between them,” Mittal said. “The mortgage loan process takes place over a longer period of time from start to close because there are other variables with a range of timing, like closing date agreements with sellers. Buying a home is one of the biggest purchases a person makes, so we believe most customers prefer a human-digital experience that allows them to engage in a variety of ways based on their needs at the different points in the process.”Enhancing Borrower ExperienceCummings said that lenders could enhance a homebuyer’s experience when buying a home through digital channels by offering solutions that allowed consumers to simplify the mortgage process and make time for other life commitments. “Homebuyers who feel in control and empowered to take the first steps in achieving their goal of homeownership will have a better experience,” she said.Mittal agreed since digital has improved access to information to enable customers to stay informed about the progress of their loan without having to pick up the phone or email the loan officer.”Those forms of communication are still important, which is why we believe omnichannel is the right approach for the best client experience, but digital has enabled more proactive information sharing than the industry previously had. Not only can customers check on the status of the loan, but they can also track tasks to be completed and collaborate with their loan officers through these digital portals.”Want to learn more about how technology such as blockchain impacts the housing and mortgage industry? Take part in the 2019 Five Star Fintech Summit, March 13-14 in Memphis Tennessee. Click here to learn more. Previous: Mr. Cooper’s Eventful Quarter Next: Back in the Saddle About Author: Radhika Ojhalast_img read more

The Student Debt Drag on Home Buying

first_img debt Households Student Loans 2019-05-13 Seth Welborn Tagged with: debt Households Student Loans The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News The Student Debt Drag on Home Buying About Author: Seth Welborn Share 1Save Subscribe Previous: Measuring Consumer Economic and Housing Market Expectations Next: App Connects Investors With Foreclosure Auctions Home / Daily Dose / The Student Debt Drag on Home Buying Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago May 13, 2019 1,536 Views Servicers Navigate the Post-Pandemic World 2 days ago Student debt is impacting the housing market, according to David Rosenberg, Gluskin Sheff’s Chief Economist & Strategist. In an article published by Business Insider, Rosenberg discusses how high levels of student loan debt are locking many potential buyers out of the market.“The lack of opportunity has led to the share of ‘kids’ between the ages of 25 and 34 that are living at home rising to 17% from 12% a decade ago,” Rosenberg said. He also noted how the weight of student loan debt across the country has had a negative impact on marriage and fertility rates, as well as enrollment in post-secondary school, leading to slower household formation.Outstanding student loan debts have topped $1.6 trillion, up by around 130%‎ over the past decade, and the late payment rate sits at around 10%.“If you are in arrears on this type of debt, forget getting a FICO score and forget having the leeway to secure any sort of loan for years after missing a payment,” he adds.“This is one reason why we never did have a normal housing market cycle beyond the ‘buy for rent’ investor craze that began nearly a decade ago,” Rosenberg said. “The home sales share in this economic expansion represented by the first-time buyer rarely got above 30%, whereas a typical bull market in residential real estate sees this share hovering between 40% and 50% in any given month.”In the annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon recently echoed Rosenberg’s sentiment, noting how the increase in student loans has held the mortgage industry back.“Irrational student lending, soaring college costs, and the burden of student loans have become a significant issue,” Dimon said. “The impact of student debt is now affecting mortgage credit and household formation—a $1,000 increase in student debt reduces subsequent homeownership rates by 1.8%. Recent research shows that the burdens of student debt are now starting to affect the economy.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily  Print This Postlast_img read more

Is the Economy Stuck in Neutral?

first_img There’s a low demand for capital investment due to many factors, which has more or less neutralized the economy. In fact, the neutral rate of interest is at a historic low, and it doesn’t look like it will increase any time soon, that’s according to First American Chief Economist Odeta Kushi.Welcome to the lowest neutral rate of interest in years, a statement and status most might find confusing. But according to First American, this 60-year low may prove that the economy may be stuck in neutral for a while.What exactly is a neutral rate of interest? Kushi explains that when the economy is at full employment and enjoying stable inflation, it’s the short-term interest rate that would be the standard. The Federal Reserve may then choose to cool the economy by setting benchmark federal funds rates above the neutral rate of interest, or stimulate the economy by setting rates below it.Since the financial crisis of 2009, the neutral rate of interest has been below the federal funds rate. And currently, this phenomenon isn’t exclusive to the United States. Other advanced economies like Canada and the United Kingdom are experiencing similar economic activity.This may be due in part to the world old-age dependency ratio, which measures how much of the population has aged out of the workforce. These individuals reduce the output of the economy. With fewer workers to supply with capital investment, there’s less demand for new investment, and this pushes the neutral rate of interest down. In addition, if this aging population has money saved for retirement, they’ve increased the supply of savings, which also drives down the neutral rate of interest. In 2019, the U.S. old-age dependency ratio reached 25%.The chart shows the Holston, Laubach and Williams estimate of the neutral rate of interest against the effective federal funds rate.Productivity growth has also slowed. During the 1990s, real output per hour grew an average of 2.3% per year, but since 2009 it has dropped to 1.4% per year. This can also push down the neutral rate of interest by lowering demand for capital investments.Global uncertainty also impacts the neutral rate of interest. With growing uncertainty comes the demand for safe harbor assets and long-term Treasury bonds, which most feel are safer and more secure.“Global graying has resulted in excess savings, while slower productivity growth reduces demand for capital investment, Kushi said. “The U.S. serving as a safe haven for foreign assets exacerbates the savings glut domestically.”  Print This Post Sign up for DS News Daily Related Articles The Best Markets For Residential Property Investors 2 days ago February 4, 2021 766 Views Previous: DS5: Why the Public Capital Market is Attracting Lenders Next: Banking Committee Approves Marcia Fudge’s Nomination to be HUD Secretary The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Is the Economy Stuck in Neutral? Share Save Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Demand Propels Home Prices Upward 2 days ago 2021-02-04 Christina Hughes Babb About Author: Christina Hughes Babb Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Is the Economy Stuck in Neutral? Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more