Winter Season Takes A Toll on Q1 GDP

first_img Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Bureau of Economic Analysis Commerce Department Forecast GDP in Daily Dose, Featured, Government, Headlines, News Home / Daily Dose / Winter Season Takes A Toll on Q1 GDP The nation’s economy came to a screeching halt in the first quarter as investments in business and residential projects struggled.According to numbers put out by the Commerce Department’s Bureau of Economic Analysis (BEA) Wednesday, real gross domestic product (GDP) grew at an annualized rate of 0.1 percent in Q1, a plunge from the final 2.6 percent growth rate reported for Q4 2013. Economics surveyed byBloomberg projected a consensus forecast of 1.1 percent growth.The sudden slowdown reflects in part the toll this year’s winter season took on economic expansion, though not all changes were weather-related. One anticipated decline was in real private inventories, which knocked more than half a percentage point off of GDP growth as business cut down on supplies.“We really expected the inventories to whack GDP growth fairly significantly,” commented Brendan Lowney, principal and macroeconomist at Forest Economic Advisors (FEA). “They had built up over the past few quarters, and we were due for that correction.”Also continuing on its downward path was residential fixed investment, which declined at an annual rate of 5.7 percent as homebuilding and sales turned up largely disappointing numbers throughout the year’s opening months.Not all of Wednesday’s report was negative, however: Personal consumption expenditures, while slower compared to the fourth quarter, still grew at a rate of 3.0 percent, while federal government spending actually contributed to economic growth after a long period of drag.With other economic indicators showing more positively—in particular employment, which has picked up after a few slow months—analysts don’t expect the early GDP numbers to affect any policymaking at the Federal Open Market Committee’s April meeting, which ends Wednesday. The meeting is expected to end with the announcement of further cuts in the Federal Reserve’s stimulative asset purchases program.Still, even with two more revisions to Q1 growth scheduled for the coming months, final GDP numbers seem poised to come up short of initial expectations. FEA, which had projected a growth rate of 1.5 percent in the government’s advanced estimate, now expects first-quarter GDP to expand at a rate closer to 1 percent.Said Lowney: “I would expect the revisions to more likely than not be positive, but it’s still a weak quarter, no matter how you slice it.” Related Articles  Print This Post The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Federal Reserve Continues Taper; Reduces Purchases by $10 Billion Next: U.S. Home Flipping Drops to 3.7 Percent of All Sales Sign up for DS News Daily center_img Bureau of Economic Analysis Commerce Department Forecast GDP 2014-04-30 Tory Barringer Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 30, 2014 605 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Winter Season Takes A Toll on Q1 GDP Subscribe Demand Propels Home Prices Upward 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Read More →

GSEs Finish Credit Risk Sharing for 2015 on a Strong Note

first_img Previous: SingleSource Property Solutions Merges With iMortgage Services Next: Seasonal Slowdown Keeps Homes at an Affordable Level The Best Markets For Residential Property Investors 2 days ago GSEs Finish Credit Risk Sharing for 2015 on a Strong Note Tagged with: CIRT Credit Insurance Risk Transfer Credit Risk Sharing Fannie Mae Freddie Mac December 21, 2015 1,405 Views Sign up for DS News Daily With no end to the FHFA’s conservatorships of the GSEs in sight after more than seven years, Fannie Mae and Freddie Mac are both heavily engaged in transferring credit risk on single-family mortgage loans to the private sector in order to remove some of the risk for taxpayers.Both GSEs have announced the completion of their final risk transaction of 2015 as of late last week, and the FHFA said last week in the GSEs’ scorecard for 2016 that the Enterprises plan to transfer credit risk on at least 90 percent of the unpaid principal balance (UPB) of newly-acquired single-family mortgages in loan categories targeted for risk transfer.Fannie Mae’s final credit risk transfer deal of 2015, known as CIRT 2015-6 (Credit Insurance Risk Transfer), is unique from previous CIRT transactions because the loan pool covered includes 5/1, 7/1 and 10/1 fixed period adjustable rate mortgages (ARMs), which allows Fannie Mae to offer a new investment opportunity to reinsurers. Through six CIRT transactions since the program’s inception in 2014, Fannie Mae has acquired more than $1.2 billion of coverage on more than $46 billion of loans. More than $1 billion of that CIRT insurance acquired by Fannie Mae on more than $40 billion in loans has occurred in 2015.“Fannie Mae remains focused on advancing and driving strong interest and results for our credit risk transfer programs that help shift risk away from the company and to holders of private capital, reduce taxpayer risk and help create a safer, stronger housing finance system,” said Rob Schaefer, VP for credit enhancement strategy & management. “With our final CIRT deal of 2015, we continued to find ways to interest reinsurers with access to varied loan collateral by introducing ARM loans to our transactions. Insurers and reinsurers tell us that they value our commitment to engage their industry through our CIRT program, and the unique, customized risk opportunities that CIRT can offer, helping insurers and reinsurers to expand their risk portfolio.”CIRT 2015-6 became effective on November 1, 2015; on this transaction, Fannie Mae retains the risk for the first 50 basis points of loss on an $8.2 billion pool of loans, according to the GSE.Another of Fannie Mae’s innovative credit risk transfer programs, Connecticut Avenue Securities (CAS), has sold more than $12.4 billion in securities to private investors, which covers $438 billion worth of mortgage loans since the program’s inception in September 2013. CIRT Credit Insurance Risk Transfer Credit Risk Sharing Fannie Mae Freddie Mac 2015-12-21 Brian Honea About Author: Brian Honea Related Articles Share Save Demand Propels Home Prices Upward 2 days ago  Print This Post 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 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. Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago “Fannie Mae remains focused on advancing and driving strong interest and results for our credit risk transfer programs that help shift risk away from the company and to holders of private capital, reduce taxpayer risk and help create a safer, stronger housing finance system.”Rob Schaefer, Fannie Mae VP for credit enhancement strategy & managementIn late November, Fannie Mae’s fellow GSE, Freddie Mac, announced its eighth and final credit risk sharing transaction of 2015, STACR 2015-HQA2 (Structured Agency Credit Risk). Freddie Mac’s risk-sharing initiatives include 17 STACR debt note offerings and 11 Agency Credit Insurance Structure (ACIS) transactions since becoming the first agency to market credit risk transfer transactions with STACR and ACIS in the middle of 2013. Since then, Freddie Mac has grown its investor base to more than 170 unique investors, including reinsurers. The Enterprise has laid off a substantial portion of credit risk on single-family mortgages totaling $384 billion in UPB.Both Fannie Mae and Freddie Mac have announced that their respective credit risk sharing initiatives (CIRT and CAS for Fannie Mae, STACR and ACIS for Freddie Mac) will continue in 2016 in order to allow more participation from the private sector in the U.S. housing market. Home / Daily Dose / GSEs Finish Credit Risk Sharing for 2015 on a Strong Note Subscribelast_img read more

Read More →

Freddie Mac Hits Credit Risk Transfer Milestone

first_img Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He’s been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing. The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, News, Secondary Market Previous: FHA Makes Enhancements to Distressed Loan Sales Program Next: Fannie Mae’s Mortgage Portfolio Value Tumbles Share Save June 30, 2016 943 Views Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Credit Risk Transfer Freddie Mac 2016-06-30 Brian Honea Tagged with: Credit Risk Transfer Freddie Mac Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Freddie Mac Hits Credit Risk Transfer Milestone Demand Propels Home Prices Upward 2 days agocenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Freddie Mac Hits Credit Risk Transfer Milestone The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Scott Morgan Freddie Mac has obtained three new insurance policies under its Agency Credit Insurance Structure (ACIS) program, representing the largest aggregate transaction to date, and a new milestone reached.The new policies provide a combined maximum limit of approximately $788 million of losses on single-family loans and transfer much of the remaining credit risk associated with three of the Structured Agency Credit Risk debt issuances this year. These transactions, aided by Chicago-based risk management firm Aon Benfield, transfer “a significant portion of mortgage credit risk on approximately $75 billion of unpaid principal balance on single-family mortgages” Freddie Mac announced Thursday.All this means that Freddie Mac has now placed $5 billion in insurance coverage through 20 ACIS transactions since the program’s inception in 2013.”We are pleased to have reached another significant issuance milestone in our single-family credit risk transfer program,” said Kevin Palmer, senior vice president of single-family credit risk transfer for Freddie Mac. “Our evolving and maturing ACIS program continues to attract a growing amount of capital from domestic and foreign insurers and reinsurers, as evidenced by the record number of counterparties who helped to make today’s announcement possible.”Aon Benfield CEO Eric Andersen said, “After a period of educating insurers and reinsurers on U.S. mortgage credit risk, we have found they have become comfortable and very receptive to this new line of business. We are pleased to have the opportunity to continue to work alongside Freddie Mac to create sustainable re-insurance capacity in this sector, and consequently an ever more stable U.S. housing market environment.”Freddie Mac was the first agency to such types of credit risk transfer transactions as ACIS. Since 2013, through ACIS and other programs such as the Structured Agency Credit Risk (STACR) series, Freddie Mac has transferred a substantial portion of credit risk on more than $525 billion of unpaid principal balances on single-family mortgages. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Sign up for DS News Daily Subscribelast_img read more

Read More →

CFPB Complaints: What They Mean to Servicers

first_img Demand Propels Home Prices Upward 2 days ago  Print This Post Black Knight Financial Services CFPB Complaints CoreLogic Five Star Institute 2016-09-01 Kendall Baer Home / Daily Dose / CFPB Complaints: What They Mean to Servicers Sign up for DS News Daily Subscribe September 1, 2016 1,153 Views The Best Markets For Residential Property Investors 2 days ago Share Save Previous: Pending Home Sales Prevail Despite Tight Inventory Next: Freddie Mac Sets Up Sale of Sixth STACR Pool Demand Propels Home Prices Upward 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Black Knight Financial Services CFPB Complaints CoreLogic Five Star Institutecenter_img Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Government, News The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Kendall Baer Data Provider Black Knight to Acquire Top of Mind 2 days ago Consumer Financial Protection Bureau (CFPB) complaints are difficult to track and address, but they can potentially cause significant reputational damage to mortgage lenders and servicers if common issues in the complaints are not handled properly, according to a recent report from CoreLogic.The report states they used CoreLogic tax servicing data to evaluate the reasons for CFPB mortgage complaints and found that the number of overpayment-related escrow account refunds is one of the main factors of these complaints.The report also states that escrow accounts are often required by the lender or servicer to pay taxes and hazard insurance premiums for the borrower on top of monthly mortgage payments and likewise, the servicers typically evaluate the principal, interest, tax, and insurance on an annual basis and charge borrowers on a monthly basis. CoreLogic reports that if the borrowers overpay, they will receive a refund at the end of the year, and the overpayment can be due to various reasons such as borrower overpayment during closing, double payments by both the borrower and the servicer and inaccurate annual bill estimation.Where the problem lies according to the report is if borrowers learn that they have been overpaying for months without the opportunity for a refund. If the borrowers have a non-escrow account, on the other hand, they will be responsible for all the tax and hazard insurance payments and can potentially encounter penalties from the taxing agency for late payments.CoreLogic determined after extracting complaints data from the CFPB’s official website from January 2013 through December 2015 for four relevant complaint categories: loan servicing, payments, escrow account; application, originator, mortgage broker; settlement process and costs; and credit decision/underwriting, that mortgage servicers can achieve a significant reduction in borrower complaints by improving the accuracy of their yearly mortgage bill estimation and more efficiently processing refunds to the borrowers. But even with this information, the question remains: are these CFPB complaints an accurate representation of these servicers and lenders?The Five Star Institute and Black Knight Financial Services came together in March of 2015 in a white paper examining how the mortgage-related complaints received by the CFPB are on the decline after an initial ramp-up period, and delinquent loans and foreclosures have also decreased. The report seeks to address of the question of whether these two stats are falling at the same rate and if there is a correlation between the two.For the comparison of complaint trends and loan trends, the comparison revealed that complaints in the category of “loan modification, collection, and foreclosure” declined by more than 50 percent on an absolute basis and by 35 percent on a relative basis versus non-current loan inventory. This translates to a rate of about 13 complaints per 10,000 non-current loans as of Q4 2014. Meanwhile, the rate of complaints received in the “loan servicing, payments, and escrow account” was reported to be only one for every 10,000 current loans in Q4, which calculated to just 0.77 basis points.“When the data presents that there are 13 complaints per 10,000 non-current mortgage loans, we need to ask the question if the criticism mortgage servicers are receiving is warranted, and if these numbers instead align more closely with the normal course and expectations of doing business,” said Ed Delgado, President and CEO of The Five Star Institute.For more information on the study click HERE.The Five Star Institute is the parent company for DS News and DSNews.com. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago CFPB Complaints: What They Mean to Servicers Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Read More →

Freddie Mac Prices Sixth STACR Offering

first_img in Daily Dose, Featured, News Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Freddie Mac Prices Sixth STACR Offering Credit Risk Sharing Freddie Mac STACR 2016-09-13 Kendall Baer Share Save Tagged with: Credit Risk Sharing Freddie Mac STACR Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Related Articles Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Freddie Mac recently priced a $515 million Structured Agency Credit Risk (STACR) debt notes offering, according to a report from the GSE. This is reportedly the sixth one from Freddie Mac this year. The report states that through STACR, Freddie Mac transfers a significant portion of its mortgage credit risk on certain groups of loans to private investors.Pricing for STACR Series 2016-HQA3 includes M-1 class which is one-month LIBOR plus a spread of 80 basis points, M-2 class which is one month LIBOR plus a spread of 135 basis points, M-3 class which is one month LIBOR plus a spread of 385 basis points, and finally, B class which is one month LIBOR plus a spread of 900 basis points.Bank of America Merrill Lynch and Goldman, Sachs & Co. will serve as co-lead managers and joint bookrunners, according to the report.Freddie Mac states that with the STACR 2016-HQA3 offering of loans with LTVs ranging from 80 to 95 percent, Freddie Mac holds the senior loss risk in the capital structure and a portion of the risk in the Class M-1, M-2 and M-3 tranches, and the first loss Class B tranche.Additionally, STACR 2016-HQA3 has a reference pool of single-family mortgages with an unpaid principal balance of more than $15.7 billion. The reference pool consists of a subset of 30-year fixed-rate single-family mortgages acquired by Freddie Mac.The report states that Freddie Mac has led the market in introducing new credit risk-sharing initiatives with STACR, Agency Credit Insurance Structure (ACIS) and Whole Loan Securities (WLS(SM)), and was the first agency to market these types of credit risk transfer transactions. The company states that it has since grown its investor base to more than 200 unique investors, including insurers and reinsurers. Additionally, since 2013, the company has transferred a significant portion of credit risk on nearly $530 billion of UPB on single-family mortgagescenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Freddie Mac Prices Sixth STACR Offering About Author: Kendall Baer The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago September 13, 2016 1,351 Views Previous: National Foreclosure Rates Back to Pre-Crisis Levels in July Next: New Tool Launched for REO Market The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribelast_img read more

Read More →

Home Prices Outpace Salaries

first_imgHome / Daily Dose / Home Prices Outpace Salaries Servicers Navigate the Post-Pandemic World 2 days ago About Author: Nicole Casperson in Daily Dose, Featured, Headlines, Journal, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Affordability HOUSING HSH mortgage 2017-11-21 Nicole Casperson The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected]ivestar.com. Related Articles Demand Propels Home Prices Upward 2 days agocenter_img November 21, 2017 1,534 Views Tagged with: Affordability HOUSING HSH mortgage Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Home Prices Outpace Salaries Demand Propels Home Prices Upward 2 days ago Previous: What’s in Store for Existing Home Sales . . . Next: Catching Up With HUD Salaries are having a hard time keeping pace with home prices, even as prices continue to decline in many metro areas across the country.Utilizing the the National Association of Realtors’ Q3 2017 data for median-home prices, national mortgage rate data derived from weekly surveys by Freddie Mac and the MBA for 30-year fixed rate mortgages and available property tax and homeowners insurance costs, HSH.com recently released a report on the affordability of the nation’s 50 largest metropolitan statistical areas (MSAs).According to the data, affordability remains a major issue even though the median price of homes sold in Q3 2017—compared to Q2 2017—was actually lower in 29 of the 50 markets reviewed.In fact, for salaries to keep up with rising prices, year-over-year income gains needed to be at a 10 percent increase in about one third of all metros—and more than 9 percent in another nine.Virgina Beach MSA experienced the lowest quarter-to-quarter costs at -6.63 percent, Following suit is Nashville at -5.71 percent, and San Francisco at -5.26 percent. According to the report, this reflects increased sales of lower cost homes in those markets during the period compared to Q2.Although most markets were reportedly less expensive on a quarter-to-quarter basis, the data reports that is not the case when reviewing median costs in the Q3 of this year versus the Q3 2016, where a year-over-year decline was seen in just 1 metro area—Hartford, Connecticut—with a decline of -1.04 percent.Meanwhile, 34 of the 50 markets experienced annual gains of over 5 percent. The most expensive market the data found was the San Jose MSA, at a 16.5 percent annual rise in the median price, followed by Seattle, at an increase of 13.36 percent, and Los Angeles, with an increased 10.06 percent.Overall wage gains continue to be suppressed, rising at an estimated 2.5 percent annual rate. The report notes that “the ability of a potential homebuyer to keep up is increasingly difficult, if not impossible.”In the end, the report says, “somewhat lower mortgage rates during the period helped to improve affordability, but we may not be able to count on this offset much as we move into the Q4 2017 and beyond.”To view the full report, click here. Share Save Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Read More →

Which Region Has the Best Return on Rental Investment?

first_imgSubscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Journal, Market Studies, News With rising home prices and insufficient inventory hampering homebuyers in markets across the country, investment opportunities within the rental space are abundant. But which metros are the best places to invest? HouseCanary’s Canary Rental Index (CRI) for Q1 2018 shines a light on where the rental market is booming—and where it’s not.Soaring home prices and limited inventory seems like a surefire combo to spur the rental market, with some would-be homebuyers having to rent while they save up for a larger down payment or just keep hunting to find the right home for them. However, HouseCanary’s Canary Rental Index points out that this assumption doesn’t always play out that way, as not all markets are created equal.Nationwide, the effective gross yield (EGY) for rental investments is 7.7 percent, according to the Q1 2018 CRI. According to HouseCanary, the effective gross yield calculations “include rental expenses (like the price of the home and state and local tax levies), then determines what kind of return on investment a rental investor can expect given the local fair-market rental value of homes.”ROI varies significantly even within individual markets and doesn’t always correspond solely with increasing home prices. Using the Denver-Aurora-Lakewood, Colorado, metropolitan-statistical area (MSA) as an example, the HouseCanary CRI found that, while Colorado as a whole has shown an 8 percent growth increase in home prices year-over-year, the Denver neighborhoods of Franktown, Castle Rock, and Westminster were sitting around 5.1 percent price growth. The 80218 ZIP code on the north side of the city came in at 11.8 percent growth year-over-year.However, HouseCanary found that the EGY for rental investors for the 80218 ZIP code was only 5.8 percent. The 80219 ZIP code, “which encompasses the Barnum, Westwood, Mar Lee, and Harvey Park neighborhoods,” shows a rental EGY that aligns with the national average at 7.7 percent. Moreover, the highest rental EGY within the Denver MSA is actually found in the Eastern plains, almost an hour outside of the city proper—that’s where rental investors can average an EGY of 11.3 percent.“Recovery from the housing crisis has happened at a different pace for each state and even each metro area within each state,” HouseCanary’s CRI report states. “Prices are growing more quickly in some places than in others, and in MSAs where recovery has been most robust (and even in surrounding metros), price growth is probably not the best metric to use for rental investors seeking a new property to buy and hold. Although the EGY for the country as a whole was 7.7 percent in Q1 2018, the variance in the Mountain West shows the danger of relying on an average—there are metros with much better (and much worse) EGY and gross yield than the 7.7 percent national average.”So, which metros are showing the strongest rental EGY? Of the 50 metros listed in the Q1 CRI report, Kansas City, Missouri-Kansas showed a 14.1 percent yield, a 2.5 percent quarter-over-quarter increase. Pittsburgh, Pennsylvania, is right behind Kansas City with a 14.0 percent yield and a 1.7 percent quarter-over-quarter increase. Other MSAs demonstrating a yield above 10 percent include Memphis, Tennessee-Mississippi-Arkansas (13.3 percent); Birmingham-Hoover, Alabama (12.3 percent); Buffalo-Cheektowaga-Niagara Falls, New York (11.9 percent); Cleveland-Elyria, Ohio (11 percent); Indianapolis-Carmel-Anderson, Indiana (10.9 percent); St. Louis, Missouri-Illinois (10.7 percent); Rochester, New York (10.7 percent); and Oklahoma City, Oklahoma (10.1 percent).On the other end of the spectrum, the San Jose-Sunnyvale-Santa Clara, California, MSA showed the lowest yield of those markets reported on in the Q1 CRI. Yield within San Jose-Sunnyvale-Santa Clara was only 2.8 percent, down 0.7 percent quarter-over-quarter.You can download the full HouseCanary Q1 Canary Rental Index by clicking here. Canary Rental Index HouseCanary Q1 2018 rental investments Single Family Rental 2018-05-10 David Wharton Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: David Wharton Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Finding the Right Balance in Servicing Technology Next: Energy Efficiency vs. Home Affordability Tagged with: Canary Rental Index HouseCanary Q1 2018 rental investments Single Family Rentalcenter_img Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Which Region Has the Best Return on Rental Investment? Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago 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] May 10, 2018 3,899 Views Which Region Has the Best Return on Rental Investment?last_img read more

Read More →

Fed Chair Jerome Powell, Clarifies His Stance

first_img Fed Chair Jerome Powell had a one-word answer to a question on whether he would resign if President Trump asked him to. “No,” Powell said when he was asked if he would step down at the president’s request, during a panel discussion in Atlanta hosted by the American Economic Association. He participated in this discussion with other past Fed Chairs Janet Yellen and Ben Bernanke.In December, the Federal Reserve announced its final rate hike of 2018, raising interest rates to 2-1/4 to 2-1/2 percent. The market was expecting this rate hike which is the ninth one since 2015 as the Fed unwinds its policies put in place to address the financial crisis a decade ago.President Trump, who had named Jerome Powell as Fed Chair in February 2018, had appealed to the Committee to hold the rate hike. In August he had told Reuters that he was not “thrilled” with the Fed raising interest rates.“You have to understand, we’re fighting some trade battles and we’re winning. But I need accommodation too,” said President Trump, referencing ongoing negotiations with China.In public comments, Powell had remained firm that the hikes were needed and necessary. “Sound policymaking is as much about managing risks as it is about responding to the baseline forecast,” he had said.According to Politico, while Powell has been repeatedly criticized by President Trump for the central bank’s campaign of steady rate hikes, the Fed chairman has said there has been no direct contact between him and the president in recent months. Still, he said he would be open to meeting with Trump. “Meetings between presidents and Fed chairs do happen,” he said. “Nothing has been scheduled.” And the President might not have the authority to remove the Fed Chief either, according to Steven Mnuchin, Treasury Secretary. The president can remove a member of the Fed board only “for cause,” which does not include policy disagreements. Related Articles Home / Daily Dose / Fed Chair Jerome Powell, Clarifies His Stance Governmental Measures Target Expanded Access to Affordable Housing 2 days ago January 4, 2019 1,395 Views  Print This Post Fed Chair Jerome Powell, Clarifies His Stance Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago 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. Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Sign up for DS News Daily in Daily Dose, Featured, Government, News About Author: Radhika Ojha Federal Reserve Interest rates Jerome Powell President Trump Rate Hikes 2019-01-04 Radhika Ojha The Best Markets For Residential Property Investors 2 days ago Previous: Examining the Enforcement of TILA Next: Primary Residential Mortgage Unveils Succession Plans Tagged with: Federal Reserve Interest rates Jerome Powell President Trump Rate Hikes The Best Markets For Residential Property Investors 2 days agolast_img read more

Read More →

How Millennials Are Moving the Housing Market

Demand Propels Home Prices Upward 2 days ago  Print This Post Share Save The Best Markets For Residential Property Investors 2 days ago February 20, 2019 2,907 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / How Millennials Are Moving the Housing Market Tagged with: Affordability Baby Boomers Down Payment Gen-X Home Home Prices Homebuyers HOUSING Millennials mortgage Realtor.com How Millennials Are Moving the Housing Market The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: Capital Living: America’s Best Cities to Reside in Next: Examining Third-Party Purchasers’ Role in Foreclosure Proceedings in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Affordability Baby Boomers Down Payment Gen-X Home Home Prices Homebuyers HOUSING Millennials mortgage Realtor.com 2019-02-20 Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Related Articles Affordability, low down payments, and less traditional secondary markets with an abundance of jobs and homes are just some of the things that millennials look at while purchasing a home, according to an analysis by Realtor.com. The analysis also found that millennials are taking on larger mortgages when compared with the older generations.Millennials have also started looking beyond starter homes. Despite a lower median purchase price of $238,000 for a starter home compared to Gen-Xers and baby boomers, the analysis indicated that millennials were increasing their purchase price at a faster rate than previous generations, indicating more buying power.They’re also becoming the largest mortgage purchasers by the number of loans originated, “surpassing Generation X as their leader in January 2017. As 2018 came to a close, millennials took on nearly half of all new mortgages compared with 36 percent for Gen X and 17 percent for baby boomers.”Despite these growing numbers, the study indicated that millennial homebuying was driven by affordability as this demographic tended to make lower down payments compared to other generations. The analysis indicated that down payments by millennials averaged 8.8 percent in December 2018, compared to 11.9 percent for Generation X and 17.7 percent for “the more equity-rich” baby boomers.”Millennials are getting older, with better jobs and deeper pockets, allowing them to expand their collective purchase power, and hence, their footprint in the market,” said Javier Vivas, Director of Economic Research at realtor.com. “The stereotype that millennials primarily choose to buy homes and live in large metro areas isn’t the reality. Results show millennials’ expansion is more heavily conditioned by affordability than in prior years, so their eyes are set on less traditional secondary markets where homes and jobs are now available and plentiful.”While Buffalo, Pittsburgh, Milwaukee, Cincinnati, and Columbus ranked among the top housing markets preferred by millennials, Gen X-ers purchased homes in strong job markets and secondary home markets. Los Angeles, Providence, Bridgeport, Jacksonville, and Atlanta ranked among the top five markets for Gen-Xers.For baby boomers, the top five markets were Knoxville, Sacramento, Memphis, Oklahoma City, and Riverside. 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 Week Ahead: Nearing the Forbearance Exit 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. About Author: Radhika Ojha Subscribe read more

Read More →

Racial Disparities in Lending and Foreclosure Trends

first_img Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Market Studies, News Borrowers Clever.com HMDA Lender Discrimination Lenders Loan mortgage 2019-07-04 Radhika Ojha July 4, 2019 2,483 Views Tagged with: Borrowers Clever.com HMDA Lender Discrimination Lenders Loan mortgage Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Previous: The Value of Rent Payment Reporting Next: Parts of a Whole in Default Servicing About Author: Radhika Ojhacenter_img Subscribe Related Articles Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Racial Disparities in Lending and Foreclosure Trends Racial Disparities in Lending and Foreclosure Trends Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post African-Americans are twice as likely to be denied a mortgage when controlling for income, according to a Clever.com study.The study, which analyzed Home Mortgage Disclosure Act (HMDA) data from the Federal Financial Institution’s Examination Council (FFIEC) about applicant and borrower characteristics, revealed that applicant data points were limiting and that HMDA’s data set is missing important variables like why applicants were denied.In fact, it found that 52% of black applicants had no reason listed for their mortgage being denied.Amongst its key findings, the study said that when controlling for income, the disparity between white and black mortgage approval rates was most pronounced in the South. Eighty-nine percent of white applicants are approved in Southern states, compared to 76% of black applicants, it indicated.The states where black applicants are least likely to get approved included Kansas, South Carolina, Mississippi, Louisiana, Arkansas, Delaware, and Alabama. In South Carolina, the study said that 49% of black applicants were denied applications compared to 8% of white applicants, not controlling for income.While it found the least racial disparity in mortgage lending in the West, the study said that “the difference between approval rates is still statistically significant, indicating racial discrimination in the mortgage industry is a nationwide issue.”It found four exceptions to this rule. In Montana, Idaho, Hawaii, and Vermont the number of mortgage loan denials were higher for white borrowers than Black. Additionally, in these states, the discrepancy between black and white approval rates is less than 7%.Looking at borrowers by race, it indicated that “mortgage applicants are predominantly white.” Out of the sample of 1.7 million applicants analyzed by Clever.com, more than 1.4 million mortgage applicants were white, compared to 80,442 African Americans, 93,762 Asian Americans, 29,293 American Indians, and 15,645 Native Hawaiians or Pacific Islanders.The study also found that African-Americans and Hispanics were more likely to be at risk of foreclosures. This, because African-Americans (105%) and Hispanics (78%) were more likely to use high-cost mortgages to purchase a home. The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

Read More →