Civil Rights Groups Urge Administration to Recapitalize GSEs and End Conservatorships

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago In response to some recent announcements by key government officials to the effect that the FHFA’s conservatorships of Fannie Mae and Freddie Mac will continue for the final 15 months of the Obama Administration, several civil rights groups are calling on the Administration to recapitalize and reform the GSEs.The National Community Reinvestment Coalition (NCRC), the National Association for the Advancement of Colored People (NAACP), and the League of United Latin American Citizens (LULAC) sent a letter to President Obama, calling on the Administration to end the conservatorships and recapitalize Fannie Mae and Freddie Mac. The letter came in response to last week’s remarks by Treasury Secretary Jack Lew and Counselor to the Treasury Secretary Antonio Weiss stating that the GSEs would not recapitalize and would remain in conservatorship during the final year of the Administration.“The most sensible path forward for the housing finance system is to recapitalize Fannie and Freddie, take them out of conservatorship, and to build on the reforms of strong supervision and oversight of the Enterprises started in 2008 with the passage of the Housing and Economic Recovery Act,” NCRC President and CEO John Taylor said. “We agree with the Administration that there are a number of reforms still needed in the secondary mortgage market, but the answer does not lie in scrapping Fannie Mae and Freddie Mac. They can and should be recapitalized; they can and should be fixed.”“We anticipate several others in the housing advocacy and lender community will also be expressing similar thoughts about recapitalization and the future of Fannie Mae and Freddie Mac in the coming days.”—NCRC President and CEO John TaylorThe GSEs have been in conservatorship of the FHFA since September 2008, when they received a $187.5 billion taxpayer bailout to continue operations.  The fact that they remain in conservatorship seven years later remains a contentious topic among lawmakers and those in the housing industry. While the HERA made it clear from the beginning that the conservatorships were intended to be temporary, Fannie Mae and Freddie Mac remain in the FHFA’s control seven years later with no end in sight—meaning taxpayers would be on the hook if the GSEs were to need another bailout. Weiss, in his editorial last week, said said the opposite was true—that a “recap and release” (recapitalize and release the GSEs from conservatorship) could potentially result in another taxpayer-funded bailout.Legislation has been introduced to try and end the conservatorships and privatize Fannie Mae and Freddie Mac, notably by Senator Bob Corker (R-Tennessee), but it has not made any headway.“Fannie and Freddie, through their charters, their affordable housing goals and the products they offer, have played a critical role in creating homeownership opportunities and building the middle class in America,” Taylor said. “We simply cannot stand by and face losing their affirmative obligations to serve, especially when Congress does not have a viable, coherent plan that would better serve working families. We anticipate several others in the housing advocacy and lender community will also be expressing similar thoughts about recapitalization and the future of Fannie Mae and Freddie Mac in the coming days.”Click here to read the letter. The Best Markets For Residential Property Investors 2 days ago Share Save October 30, 2015 1,604 Views in Daily Dose, Featured, News, Secondary Market 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. Home / Daily Dose / Civil Rights Groups Urge Administration to Recapitalize GSEs and End Conservatorships Tagged with: Conservatorships Fannie Mae FHFA Freddie Mac LULAC NAACP NCRC Related Articles Demand Propels Home Prices Upward 2 days ago Previous: Counsel’s Corner: Heavy Regulatory Burden Comes With Updated HMDA Rule Next: LRES Hires New Regional VP of Sales and Names New VP of Homeowner Association Services Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Civil Rights Groups Urge Administration to Recapitalize GSEs and End Conservatorships 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 Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brian Honea Conservatorships Fannie Mae FHFA Freddie Mac LULAC NAACP NCRC 2015-10-30 Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Subscribelast_img read more

North Carolina Borrowers Receive Foreclosure Relief Money from SunTrust Settlement

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago North Carolina Borrowers Receive Foreclosure Relief Money from SunTrust Settlement December 7, 2015 1,259 Views Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Foreclosure Settlements North Carolina SunTrust Mortgage 2015-12-07 Brian Honea in Daily Dose, Featured, Foreclosure, News Tagged with: Foreclosure Settlements North Carolina SunTrust Mortgage Subscribe About Author: Kerri Panchuk Kerri Panchuk is an attorney and financial writer with more than a decade of experience covering real estate, default servicing, residential mortgage-backed securities, retail, macroeconomics, and commercial real estate. Panchuk graduated from the Southern Methodist University Dedman School of Law and texas Tech University, Panchuk previously served DSNews.com as online managing editor/producer and webcast anchor. In April, she rejoined the Fiver Star Institute as executive director of member groups, overseeing the development and growth of the National Appraisal Congress and Title and Closing Coalition. Panchuk is a member of the State Bar of Texas. Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save “Through these agreements we’re holding banks accountable for past problems and preventing future ones.”Roy Cooper, North Carolina Attorney GeneralThe deal was made after allegations from attorneys generals surfaced, claiming the bank violated foreclosure, servicing or loan modification practices, harming borrowers who were already in distress and who may have had other relief options available at the time.“This is welcome relief for North Carolina families who suffered foreclosures done wrong,” said AG Roy Cooper. “Through these agreements we’re holding banks accountable for past problems and preventing future ones.”Cooper’s office says the AG’s settlement with SunTrust is based on the National Mortgage Settlement negotiated back in 2012 with the country’s largest mortgage servicers—Ally/GMAC, Bank of America, JPMorgan Chase, Citi and Wells Fargo.Cooper previously negotiated a $26-million settlement with Ocwen Financial as part of a larger $2.1 billion deal covering national mortgage servicing issues. Previous: Expanded Loan-Level Dataset Aimed at Helping Investors Support Credit Risk Offerings Next: Merging Landlords See Growing Profit in Single Family Rentals North Carolina residents harmed by mishandled or suspect foreclosures in the aftermath of the financial crisis are set to receive $2 million in cash payments from SunTrust Mortgage as part of a larger $550 million settlement, the state’s Attorney General confirmed in a press statement.North Carolina Attorney General Roy Cooper announced Friday that $23.5 million in financial relief will be distributed to roughly 1,400 North Carolina homeowners who had mortgages serviced by SunTrust and who faced foreclosures during the time period running from Jan. 1, 2008, through Dec. 31, 2013.As part of the deal with SunTrust, the bank has forgiven $2.8 million in first liens and approximately $2 million in first and second liens to facilitate short-sale transactions for impacted homeowners.The $2 million payout will provide cash to North Carolina consumers who lost their homes and who alleged misconduct on the part of SunTrust for either unauthorized foreclosures or violations of servicing and foreclosure practices.The North Carolina settlement is part of a much larger $550 million deal that SunTrust struck with 49 states, the District of Columbia and federal authorities. Home / Daily Dose / North Carolina Borrowers Receive Foreclosure Relief Money from SunTrust Settlement Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Postlast_img read more

Five Star’s Ed Delgado Criticizes Senate HUD Nomination Hold

first_img  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Lawmakers React to Wells Fargo Fine Next: Single-Family Rentals Over the Past Decade The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago April 20, 2018 3,438 Views Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Ed Delgado and HUD Secretary Ben Carson at the Five Star Government ForumOn Thursday, it was reported that U.S. Sen. Tammy Duckworth (D-Illinois) has placed a blanket hold on all nominations for vacant positions within the U.S. Department of Housing and Urban Development.Sen. Duckworth made this move after not receiving a response within her prescribed deadline to a letter containing more than 25 detailed questions that she and Sen. Dick Durbin (D-Illinois) sent to HUD Secretary Ben Carson regarding the closure of two dilapidated public housing complexes in Thebes, Illinois, that impacted 85 residents. In the letter, the Senators called the closing “an ill-advised and heedless decision.” HUD placed the county public housing authority in administrative receivership in 2016 after diagnosing years of mismanagement by local public housing authorities, a move widely praised at the time by both senators.On April 3, Five Star President and CEO Ed Delgado and HUD Secretary Dr. Benjamin Carson met at the Five Star Government Forum in Washington D.C., where they commented on the urgency around resolving Brian Montgomery’s nomination as Assistant Secretary for Housing and Federal Housing Administration Commissioner for the United States Department of Housing and Urban Development.However, the blanket hold, a parliamentary procedure designed to keep present and future departmental nominations from being considered on the Senate floor so long as it is in place, may have more detrimental ramifications than Sen. Duckworth is anticipating—and the people it will impact the most are American homeowners.“The delay on the nomination of Brian Montgomery is a political game played at the expense of homeownership,” Delgado said in reaction to the hold. “For three and a half years, FHA has been without a confirmed, permanent commissioner. This hold continues the practice of depriving HUD of vital leadership at one of its most crucial positions. These types of parliamentary tricks are out of step with the needs of homeowners and represent politics at its worst.”Earlier this month, Delgado, on behalf of multiple trade organizations, sent a letter to the Senate Majority Leader Mitch McConnell, congratulating him on working with the administration to lead the confirmation process of a record number of nominees to the federal bench, but urging that the Senate move on the nomination of Brian D. Montgomery for the position of Assistant Secretary for Housing and Federal Housing Administration Commissioner for the United States Department of Housing and Urban Development.“On November 28, 2017, and again on January 8, 2018, the Senate Banking Committee voted to recommend the nomination of Brian D. Montgomery … Now, nearly four months since being approved by the committee for the second time, the status of Mr. Montgomery’s nomination to lead the Federal Housing Administration remains uncertain, with no vote scheduled in the near term,” Delgado wrote.In his letter, Delgado outlines the importance of the FHA to the mortgage industry and in preserving the American Dream of Homeownership, citing that the agency’s portfolio totals more than $1.37 trillion dollars in assets; has provided mortgage insurance for 47.5 million single-family homes and since its inception; and in 2017, FHA insured 37.7 percent of all mortgages provided to racial or ethnic minorities.“Despite its importance within the mortgage market, the FHA has been without a Senate-confirmed leader since 2014, stymieing the effectiveness of the organization and the ability of its staff to make meaningful policy adjustments as the market dictates,” Delgado wrote.In addition to Montgomery, two other senior nominees await confirmation votes for HUD positions, according to the Washington Post Nomination Tracker.Robert Hunter Kurtz is awaiting confirmation as Assistant Secretary for Public and Indian Housing. The position serves as the principal adviser to the Secretary and Deputy Secretary on matters relating to the development and management of the department’s public and Indian housing programs, which provide affordable housing to more than 1.3 million households nationwide and oversees a budget of about $27 billion.Seth Daniel Appleton is also awaiting confirmation for the post of Assistant Secretary for Policy Development and Research, the principal advisor to the Secretary on overall departmental policy, program evaluations, demonstrations, and research, and who is responsible for providing economic information and analyses of housing and community development statistics and other data. Related Articles Share Save Rachel Williams attended Texas Christian University (TCU), where she graduated with Magna Cum Laude with a dual Bachelor of Arts in English and History. Williams is a member of Phi Beta Kappa, widely recognized as the nation’s most prestigious honor society. Subsequent to graduating from TCU, Williams joined the Five Star Institute as an editorial intern, advancing to staff writer, associate editor and is currently the editor in chief and head of corporate communications. She has over a decade of editorial experience with a primary focus on the U.S. residential mortgage industry and financial markets. Williams resides in Dallas, Texas with her husband. She can be reached at [email protected] Five Star’s Ed Delgado Criticizes Senate HUD Nomination Hold The Best Markets For Residential Property Investors 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Five Star’s Ed Delgado Criticizes Senate HUD Nomination Hold Tagged with: Ben Carson blanket hold Brian Montgomery Department of Housing and Urban Development Dick Durbin Ed Delgado FHA FHA Commissioner Five Star Institute HUD Nominations Secretary Ben Carson Tammy Duckworth in Daily Dose, Featured, Government, Journal, News The Best Markets For Residential Property Investors 2 days ago About Author: Rachel Williams Data Provider Black Knight to Acquire Top of Mind 2 days ago Ben Carson blanket hold Brian Montgomery Department of Housing and Urban Development Dick Durbin Ed Delgado FHA FHA Commissioner Five Star Institute HUD Nominations Secretary Ben Carson Tammy Duckworth 2018-04-20 Rachel Williams Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

FirstBank Puerto Rico Brings RES.NET Onboard to Streamline Operations

first_img About Author: Staff Writer Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago October 25, 2018 2,191 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago FirstBank Puerto Rico Brings RES.NET Onboard to Streamline Operations Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Bianca Torres Roman First Bank Puerto Rico firstbank puertorico Housing Market Kieth Guenther Mortgage Industry Originations RES.NET Related Articles FirstBank Puerto Rico has announced that it has enlisted RES.NET—a technology platform allowing mortgage bankers, investors, vendors, consumers, and other parties to communicate around a real estate transaction—to develop and deploy a new online marketplace showcasing the bank’s diverse portfolio of available assets. The new digital marketplace is also meant to engage a broader audience of potential buyers and investors than currently available. The platform was built in Spanish so as to accommodate the widest range of buyers.Shortly after FirstBank Puerto Rico selected RES.NET as the operating platform to assist with the disposition of its Other Real Estate Owned (OREO) properties, the devastation from Hurricane Maria presented a new set of unforeseen challenges. In response, the bank and RES.NET issued a joint call to action, expediting the development and deployment of their new marketplace so as to quickly adapt to the new situation.“Following Hurricane Maria, it became urgently important to streamline the bank’s OREO process and workflow while simultaneously enhancing the visibility of the bank’s available assets to a broader audience,” said Bianca Torres Román, VP of FirstBank Puerto Rico. “Within just one month of launching the new Buyer’s Marketplace, the unique number of visitors seeking information on our available properties more than tripled. Today, we are now reaching prospective buyers not just in Puerto Rico and the immediate region, but across the United States.”In addition to the Buyer’s Marketplace, the bank has implemented RES.NET’s Real-Estate-Owned (REO), Agent, Vendor, and Property Preservation portals to automatically track and manage its portfolio. Bank employees can now manage the entire process from the time a foreclosure has been conducted through the sale and closing. The new process is meant to herald the automation of multiple workflows, work cues, offer-management tools, and notification features.“With RES.NET, the complete portfolio can be viewed via the dashboard, providing real-time data and a more holistic view of our assets,” Torres continued. “Having access to this data is invaluable and helps ensure we are positioned for success in the future. Launching the Buyer’s Marketplace in combination with deploying our operating platforms is a pivotal moment for the bank’s OREO success.”“I am very pleased with the work we’ve accomplished together with the team at FirstBank Puerto Rico,” said Keith Guenther, Found and CEO of RES.NET. “It is the combined dedication of both our teams that allowed this large-scale development and implementation to occur in less than six months. We worked closely with the bank’s staff to scope and develop this customized marketplace to assist in connecting with potential buyers within Puerto Rico, as well as outside of the territory.” Home / Featured / FirstBank Puerto Rico Brings RES.NET Onboard to Streamline Operations  Print This Post Previous: Citadel Launches New Product Next: US Bank: The Legal Challenges of Default Servicing The Best Markets For Residential Property Investors 2 days ago in Featured, Headlines Bianca Torres Roman First Bank Puerto Rico firstbank puertorico Housing Market Kieth Guenther Mortgage Industry Originations RES.NET 2018-10-25 Staff Writer Subscribe Share Save Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

Bridging the Gap in Black Homeownership

February 18, 2019 2,517 Views The Best Markets For Residential Property Investors 2 days ago Bridging the Gap in Black Homeownership Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: African-American Homeownership The Urban Institute A recent report by the Urban Institute entitled “A five-point Strategy for Reducing the Black Homeownership Gap,’ pointed out that the black homeownership rate has seen the most dramatic drop of any racial or ethnic group since 2011—declining 5 percent compared to a mere 1 percent drop in white families, and with increases for Hispanic families. Data also found that the homeownership rate of black millennials stands at 13 percent today compared with 37 percent for white millennials. In the past 15 years, black homeownership rates have declined to levels not seen since the 1960s, when private race-based discrimination was legal, the report indicated. Though homeownership is the primary mode of wealth creation and more beneficial than renting from a financial perspective, there is an increasing loss of access to this wealth-building for African- Americans. Reducing the GapBased on housing industry leaders’ plans to explore areas ripe for policy intervention at both the national and local level during a planning grant from the National Association of Realtors and the National Association of Real Estate Brokers, the Urban Institute suggested five strategies to help address the issue. Firstly, it advocates understanding forces at the local level. The report stated that most metropolitan areas experienced a drop in black homeownership in the past decade. Only 4 of the largest 31 metropolitan areas with more than 100,000 black households seeing a marginal increase in the black homeownership rate. Digging deeper into the causes of the decline as well as the environment in cities where black homeownership rates have increased, is an important step.  The report also encourages examining specific market-based approaches, including removing local-level barriers related to affordability and help more renters get on a pathway to becoming homeowners.Secondly, the report emphasized how pivotal addressing housing supply and finance challenges are to bridging this gap. “We need to understand how the housing shortage and tight credit affect people and communities of color. And we need to quantify how preservation, rehabilitation, and construction of affordable housing, as well as access to small-dollar mortgages, could improve the black homeownership rate in local markets,” the report reads.Thirdly, the report highlighted how efforts to enable renters to become homebuyers will increase black homeownership through analyzing how income is calculated in mortgage underwriting, stabilizing and broadening the reach of down payment assistance and low–down payment lending programs. Fourthly, the report calls for the strengthening of government mortgage programs and bringing about needed reforms and improvements. It also cited the Federal Housing Administration and the US Department of Veterans Affairs, as two government mortgage insurance programs that play an outsized role in supporting black homeownership.Finally, sustaining homeownership through all economic cycles and keeping people in their homes after purchase is the key to building housing wealth. According to Urban Institute, there is a need to better understand how homeowners can use tools and programs to navigate all economic cycles, including taking a closer look at mortgage servicing and safe home equity lending products.The report also pointed out that “changing the course of such an enormous and entrenched problem will require intention, a renewed knowledge base, and the partnership of many stakeholders in the housing ecosystem.” African-American Homeownership The Urban Institute 2019-02-18 Donna Joseph  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles 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 Home / Daily Dose / Bridging the Gap in Black Homeownership Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Previous: Potestivo Selected for Prestigious Award Next: Golden State Records Drop in Home Sales The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Donna Joseph in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago read more

The Truth Behind Home Flipping

first_img Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago bank loan Budget Home Home Flipping House Porch project management Renovation 2019-02-28 Radhika Ojha February 28, 2019 2,213 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago There’s more to house flipping that meets the eye. And for professional home flippers, delays in project timelines, finding the right partners, and most importantly, funding, are just some of the business challenges, according to a survey by Porch.The survey of 370 people who have flipped residential real estate in the last five years looked at aspects such as buying a home, renovating on a budget, and quickly selling it for a profit.When it came to funding for a home flip, 41.6 percent respondents said that they tool the capital from personal savings accumulated from their primary source of income. Around 30 percent took bank loans, while 6.2 percent said they borrowed money from a family or friend.In terms of capital needed for a median flip vis-a-vis the profit on it, the survey revealed that profits weren’t rising with the trend. In fact, the median flipper “needed $50,000 for their most recent flip, because the average purchase cost was $100,000.” It found that while renovations were the cheapest part of the project ($30,000 or less), respondents said that “underestimating the cost of renovating could be the difference between a large profit and losing money.”In fact, nearly 64 percent of respondents said that they underestimated the cost of their last project while 36 percent said they didn’t budget enough money.Project partners also played an important role with 87 percent of the respondents saying that they flipped houses with a partner. Of these, 45.9 percent partnered with their significant other for these renovations. As with most big projects, major disagreements happening over budgeting (55.9 percent) and timelines (46 percent). However 43.5 percent respondents said that they rarely disagreed with their partners.Speaking of timelines, the survey found that on an average the total time to flip a house was delayed 17 days from the original timeline. And as with large projects like house flipping, project management was the most stressful part about the business. Around 90 percent of the respondents reported this factor as their key area causing stress, followed by construction (85 percent).Click here to read the full survey. Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / The Truth Behind Home Flipping 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. Related Articles The Truth Behind Home Flipping Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: bank loan Budget Home Home Flipping House Porch project management Renovation Subscribe in Daily Dose, Featured, Market Studies, News Share Save Servicers Navigate the Post-Pandemic World 2 days ago About Author: Radhika Ojha The Best Markets For Residential Property Investors 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Previous: A Turning Point for Home Price Growth? Next: The Census Bureau’s Homeownership Snapshot The Best Markets For Residential Property Investors 2 days agolast_img read more

HUD Addresses Discrimination in Housing

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago According to NPR, a proposal from HUD on the Fair Housing Act would target “disparate impact,” or unintentional discrimination. Critics of the proposed rule have stated that it would limit the ability to fight discrimination in housing.”It’s important because it allows us to really get at discrimination that’s not intentional,” says Nikitra Bailey, a lawyer with the nonprofit Center for Responsible Lending on NPR.According to Roger Clegg, President of the Center for Equal Opportunity, “There are always going to be racially disproportionate results for any policy.””If you have a landlord who says, ‘I’m not going to rent to people with a history of violent crime,’ ” Clegg says. “The fact that that has a racially disproportionate result does not make it discrimination.”According to NPR, HUD says it can’t comment on the proposed rule yet. But in an earlier statement, HUD Secretary Ben Carson said the department “remains committed to making sure housing-related policies and practices treat people fairly.”According to an article by economist John Wake in Forbes, the black homeownership rate is not vastly different now than what it was when the 1968 Fair Housing Act became law.Wake notes that black homeownership increased by 20% from 1950 to 1970, before housing discrimination was outlawed. Since the Act, however, the rate has remained flat. Wake offers some possible explanations.Wake notes that, as a form of compromise, the Fair Housing Act did not include strong enforcement powers.“Just four months after the Fair Housing Act was signed into law, the Housing and Urban Development Act of 1968 was signed into law,” Wake said. “It included the soon to be infamous Section 235 program from FHA that let lower-income people who couldn’t qualify for other mortgages get these new subsidized mortgages with down payments as low as $200 and subsidized, below-market interest rates as low as 1%.”HUD’s proposal is expected to be released sometime in August. HUD Addresses Discrimination in Housing in Daily Dose, Featured, Government, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Previous: Home Flipping by City Next: Experian Hires Mortgage Veteran Susan Allen Share Save About Author: Seth Welborn Tagged with: Discrimination Fair Housing Act HUD  Print This Post Demand Propels Home Prices Upward 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 August 1, 2019 1,131 Views Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Discrimination Fair Housing Act HUD 2019-08-01 Seth Welborn Home / Daily Dose / HUD Addresses Discrimination in Housing The Best Markets For Residential Property Investors 2 days ago Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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. last_img read more

The Mortgage Patch and Default Risk

first_imgHome / Daily Dose / The Mortgage Patch and Default Risk The American Enterprise Institute’s (AEI) latest Housing Market Indicators identified tightening credit. The Composite NMRI for purchase loans declined 0.4 percentage points year-over-year, the fifth month for this trend.The First-time Buyer (FTB) MRI continued to decrease led by Fannie Mae, which has been tightening since March 2019. FHA’s First-time Buyer MRI stood at 27.8% in October, down 0.7 percentage points from a year earlier.“While this change is encouraging, the decrease is coming off of very high risk levels and more needs to be done,” AEI said.AEI also analyzed housing finance reform and the patch: AEI’s report covered the impact adopting an average prime offer rate (APOR) spread rule would have compared to the Patch.According to First American, “adopting an APOR rate spread rule is worse than the Patch and would be dangerous.”“Replacing the Patch with the APOR would not provide friction to the unsustainable home price boom, particularly for entry-level buyers,” the report states.AEI also states that a safer solution than APOR would be to eliminate the 43% DTI limit applicable to QM loans and substitute a stressed Mortgage Default Rate (MDR) limit, “which actually captures risk holistically, while ensuring responsible, affordable mortgage credit availability.”As AEI says, there is a wide variation in the Mortgage Default Rate as APOR only captures risk accurately on average. According to the proposal, eliminating the 43% DTI limit applicable to QM loans and substitute a stressed Mortgage Default Rate (MDR) limit, the change would address concerns that several institutions have expressed in comment letters.For example, the Housing Policy Council recommends elimination of DTI requirement and use of rate spread as a more “holistic approach.” Urban Institute has als stated that “DTI ratio by itself does not capture credit risk comprehensively.” The Mortgage Patch and Default Risk Servicers Navigate the Post-Pandemic World 2 days ago default Finance mortgage Patch 2020-01-29 Seth Welborn Sign up for DS News Daily About Author: Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Financial Services Committee Voices Opposition to Changes to CRA Next: Disasters and Defaults: A Retrospective 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 agocenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, News Share Save Demand Propels Home Prices Upward 2 days ago January 29, 2020 944 Views Tagged with: default Finance mortgage Patch Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Subscribelast_img read more

HUD Suspends Face-to-Face Requirement in Response to COVID-19

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Rachel Williams The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Coronavirus COVID-19 HOUSING HUD Mortgages Secretary Ben Carson U.S. Department of Housing and Urban Development Coronavirus COVID-19 HOUSING HUD Mortgages Secretary Ben Carson U.S. Department of Housing and Urban Development 2020-03-14 Rachel Williams in Daily Dose, Featured, Foreclosure, Government, News The Best Markets For Residential Property Investors 2 days ago Related Articles  Print This Postcenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Rachel Williams attended Texas Christian University (TCU), where she graduated with Magna Cum Laude with a dual Bachelor of Arts in English and History. Williams is a member of Phi Beta Kappa, widely recognized as the nation’s most prestigious honor society. Subsequent to graduating from TCU, Williams joined the Five Star Institute as an editorial intern, advancing to staff writer, associate editor and is currently the editor in chief and head of corporate communications. She has over a decade of editorial experience with a primary focus on the U.S. residential mortgage industry and financial markets. Williams resides in Dallas, Texas with her husband. She can be reached at [email protected] Demand Propels Home Prices Upward 2 days ago HUD Suspends Face-to-Face Requirement in Response to COVID-19 Early Saturday morning, the U.S. Department of Housing and Urban Development (HUD) issued a partial waiver of 24 CFR 203.604, a servicing policy requiring mortgagees to establish in-person contact with borrowers during early default intervention. This suspension was issued in response to public concerns over the spread of COVID-19.In the partial waiver, which was signed late Friday evening, The Hon. Brian D. Montgomery, Assistant Secretary for Housing – Federal Housing Commissioner states that the policy “is not practical given the public health recommendations being disseminated by local, state, andfederal government agencies to limit contact between individuals, in order to containthe spread of the COVID-19 virus.”In place of the face-to-face requirement, the partial waiver outlines that mortgagees must establish contact via alternate methods, such as phone interviews, email, or video conferencing technology such as skype. This partial waiver is limited to a 12-month period and does not apply to face-to-face requirements in place for the Section 248 insurance program.Montgomery goes on to write that without this measure there would be a risk of “non-compliance by mortgagees as well as borrowers. . . . [that] could hinder the servicing of FHA-insured loans.”HUD also affirmed uninterrupted operations for its partners, stating, “the Federal Housing Administration (FHA) wants to assure its mortgagees and other interested stakeholders of its continued business operations in this evolving environment. Should FHA Single Family be required to close some or all its offices, our business operations will continue as usual; however, with some possible delays.”To address additional concerns stemming from COVID-19, the office released a “COVID-19 Questions and Answers” document. In it, FHA outlines loss-mitigation options available to borrowers who may be negatively impacted by the coronavirus, stating:As with any other event that negatively impacts a borrower’s ability to pay their monthly mortgage payment, FHA’s suite of loss mitigation options provides solutions that mortgagees should offer to distressed borrowers–including those that could be impacted by the Coronavirus–to help prevent them from going into foreclosure. An example of one of these options is our Special Forbearance for unemployed borrowers. The SFB-Unemployment Option is a Home Retention Option available when one or more of the Borrowers has become unemployed and this loss of employment has negatively affected the Borrower’s ability to continue to make their monthly Mortgage Payment.In a statement earlier this week, Federal Housing Finance Agency (FHFA) Director Mark Calabria also addressed how the FHFA, as well as Fannie Mae and Freddie Mac, are focusing their response by providing guidance to servicers.“To meet the needs of borrowers who may be impacted by the coronavirus, last week Fannie Mae and Freddie Mac reminded mortgage servicers that hardship forbearance is an option for borrowers who are unable to make their monthly mortgage payment,” Calabria said.In addition, industry groups are coming together to support homeowners who may impact impacted by COVID-19. On Friday, DS News reported that under the direction of the National Mortgage Servicing Association (NMSA), leaders from across the mortgage industry are joining forces to create the COVID-19 Mortgage Industry Task Force (ITF) to coordinate on processes, procedures, and policies related to the crisis.More than 25 mortgage banks and nonbank servicers, legal professionals, and service providers will take part in the coalition.”The speed of response from the industry has been unparalleled,” said Ed Delgado, President and CEO of Five Star Global. “We will continue to work with industry groups such as the Mortgage Bankers Association to focus on practical solutions for both the near-term and long-term impacts of COVID-19, in order to assist homeowners and to ensure the stability of the American housing market.” Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 14, 2020 16,780 Views Previous: Casting a Net for Cybersecurity Next: Biden, Sanders Address Possible Bailout & Mortgage Impact During Presidential Debate Home / Daily Dose / HUD Suspends Face-to-Face Requirement in Response to COVID-19 Subscribelast_img read more

Federal Financial Agencies Announce Flexibility in Mortgage Servicing Rules

first_img Tagged with: Forbearance Government Servicing Previous: FHFA to Re-Propose Financial Requirements for GSEs Next: How Lockdowns are Impacting Minority Homeowners The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Forbearance Government Servicing 2020-06-15 Seth Welborn Jason R. Bushby and Jonathan R. Kolodziej are partners and Nicole B. Jones is an associate in the Banking and Financial Services Practice Group at Bradley Arant Boult Cummings LLP. Jason can be reached at [email protected] Jonathan can be reached at [email protected] Nicole can be reached at [email protected] Annual Escrow StatementsIn efforts to mitigate the typically high call volume associated with borrower questions surrounding receipt of annual escrow statements, the agencies do not intend to take supervisory or enforcement action against servicers for delays in sending annual escrow statements, as long as servicers make good faith efforts to send the statements within a reasonable time.TakeawaysThe agencies’ release is clearly good – though not necessarily earth-shattering and game-changing – news for mortgage servicers. Based on our review of the agencies’ release, servicers should be mindful of the following takeaways:Although the joint statement provides guidance concerning the CARES Act and notes additional flexibility, it does not impose any new regulatory requirements on servicers. For example, small servicers, as defined by Regulation X, are not subject to many of the requirements in the rules described in the statement. And a servicer does not need to comply with the early intervention requirements of Regulation X if a borrower is not considered delinquent for purposes of those requirements.The statement resolves any lingering questions surrounding the CFPB’s view of what constitutes an incomplete loss mitigation application. In the statement, the CFPB asserts conclusively that, as a part of a servicer’s CARES Act forbearance process, a conversation with a borrower, wherein the borrower expresses interest in a forbearance plan and attests to his or her hardship, constitutes an incomplete loss mitigation application under the rules, triggering additional CFPB notice and process requirements. We have previously encouraged servicers to be mindful in recognizing when verbal borrower assistance requests meet the definition of loss mitigation applications under Regulation X.While the flexibility provided by the agencies is helpful, the agencies do not provide clear guidance as to the manner in which a servicer can take advantage of the flexibility. Put another way, it simply isn’t clear how the CFPB will interpret whether a servicer has made “good efforts” to provide the requisite notice or conduct the requisite action “within a reasonable timeframe.”While the guidance provides relief to servicers concerning agency supervision and enforcement, servicers should be aware it does not address any applicable civil liability attached to violations of the above-mentioned rules. Unless and until the agencies release guidance providing, for example, a moratorium on civil liability provisions, servicers should be aware of the potential litigation risk attached to delaying compliance of certain CFPB notices and processes in accordance with the agencies’ release. Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago in Commentary, Daily Dose, Featured, Government, News Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Federal Financial Agencies Announce Flexibility in Mortgage Servicing Rules Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Recently, the Consumer Financial Protection Bureau (CFPB), Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC) and the State Banking Regulators released a joint statement announcing increased flexibility in the agencies’ regulation and enforcement of certain mortgage servicing rules governing borrower communications in response to the COVID-19 emergency. The agencies also provided corresponding FAQs to further clarify the new approach and provide additional guidance to servicers in light of the short-term payment forbearance option included in the recently passed CARES Act.The statement provides the following guidance and flexibility under the rules, effective as of April 3 and until further notice:Acknowledgment NoticesUnder existing Regulation X rules, servicers may offer borrowers short-term assistance without obtaining a complete loss mitigation application. A CARES Act short-term forbearance, which can be obtained solely by request and affirmation of hardship, falls within this category. The statement clarifies that requests for short-term options are considered incomplete loss mitigation applications under the rules and will require the standard acknowledgment notice, which is ordinarily required within five days of receipt of the application (12 CFR 1024.41(b)). The statement clarifies that if a servicer offers or provides a short-term option, agencies “do not intend to take supervisory or enforcement action” against servicers for providing the required notice after the five-day mark, provided the notice is sent before the end of the applicable short-term plan or program period.Loss-Mitigation, Live Contact, and Early InterventionOutside of short-term options, the current rules require that when a borrower submits a standard loss mitigation application, servicers must provide a series of notices at specific intervals. Similarly, for delinquent borrowers, servicers must attempt both live and written contact on a standardized timeline. Concerning those requirements, and regardless of whether borrowers are experiencing hardship, the agencies will provide similar leniency and do not intend to take supervisory or enforcement action against servicers for:Delays in sending certain loss-mitigation notices under Regulation X, including the five-day acknowledgment notice, 30-day evaluation notice, and the appeals notice, as long as the servicer makes a good faith effort to provide the notices and take the corresponding actions required under the rules within a reasonable time (see 12 CFR 1024.41 (b)-(d), (h)(4), and (k));Delays in making or attempting to make live contact with delinquent borrowers as required, as long as servicers make good faith efforts to establish contact within a reasonable time (see 12 CFR 1024.39(a)); andDelays in sending the 45-day written early intervention letter to delinquent borrowers, as long as good faith efforts to provide the notice are made within a reasonable time (see 12 CFR 1024.39(b)). Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post About Author: Jason R. Bushby and Jonathan R. Kolodziej June 15, 2020 11,748 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Home / Commentary / Federal Financial Agencies Announce Flexibility in Mortgage Servicing Rules Subscribelast_img read more