Goldman Sachs Agrees to $270 Million RMBS Settlement with Pension Funds

first_img Previous: Brady & Kosofsky Receives Certifications for Two Compliance Audits Next: Industry Analyst Defends Massive Pay Hike for Fannie Mae and Freddie Mac CEOs in Daily Dose, Featured, News Goldman Sachs Agrees to $270 Million RMBS Settlement with Pension Funds Goldman Sachs has agreed to pay approximately $270 million to resolve claims that it sold billions of dollars worth of faulty residential mortgage-backed securities (RMBS) to investors, according to multiple media reports.Pension funds led by NECA-IBEW Health & Welfare Fund of Illinois claim that Goldman misled them as to the quality of the loans underlying the RMBS before the 2008 financial crisis, according to a report from Bloomberg.Goldman Sachs spokesman Michael DuVally declined to comment when reached by email by DS News.This is not the first time Goldman Sachs has faced a lawsuit over the quality of the RMBS it has sold. In August 2014, Goldman agreed to pay $3.15 billion to settle a lawsuit filed by the Federal Housing Finance Agency (FHFA) alleging that Goldman sold toxic RMBS to Fannie Mae and Freddie Mac, for which FHFA is the conservator.In May, Goldman was ordered by an arbitrator to pay $100 million to National Australia Bank for a conflict of interest regarding MBS sales. Also in May, the New York Appeals Court reinstated a $120 million fraud claim first brought against Goldman Sachs by ACA Financial Guaranty Corp. in early 2013 regarding the sale of a pool of subprime mortgages.MBS-related suits perpetrated by investors against financial institutions over pre-crisis RMBS sales are expected to begin winding down now that the six-year statute of limitations is up. Last month, the New York Court of Appeals ruled in the in the case of Ace Securities v. DB Structured Products that the clock on the six-year statute of limitations for investors’ claims of breach of contract with regards to RMBS begins ticking on the date the contract for the securities was executed rather than at the time that the trustees fail to repurchase the underlying mortgages.  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe Tagged with: Goldman Sachs Residential Mortgage-backed securities RMBS Goldman Sachs Residential Mortgage-backed securities RMBS 2015-08-03 Brian Honea August 3, 2015 1,426 Views Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Goldman Sachs Agrees to $270 Million RMBS Settlement with Pension Funds The Week Ahead: Nearing the Forbearance Exit 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Related Articles About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

Fitch Ratings Warns Servicers Against Ignoring Security Testing

first_imgHome / Daily Dose / Fitch Ratings Warns Servicers Against Ignoring Security Testing About Author: Staff Writer Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles 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 The Best Markets For Residential Property Investors 2 days ago information Security Technology 2017-05-18 Staff Writer in Daily Dose, Featured, News, Technology Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Reform is on the Horizon: Watt & Mnuchin Assess Next: Study: Tax Reform Will Increase Homeownership Burden Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago May 18, 2017 2,940 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago On Wednesday, in response to recent Ransomware attacks across over 150 countries around the world including the publicized DocuSign hack reported, Fitch Ratings issued a press release reminding information technology (IT) companies in the mortgage finance industry the importance of remaining vigilant in the ever-present need for regular security testing. Because of the sheer quantity of money that flows through the mortgage finance industry, as well as the sensitivity of information that could be mined by potential hackers, servers will forever be at a high risk of breach. Names, social security numbers, telephone numbers, emails, and addresses are all easily exploited pieces of information that could be targeted by hackers and malware. In addition, new information has been brought to light that certain malware will invade the host computer and use vital resources to mine for certain types of cryptocurrency without the user’s knowledge. Fitch Ratings continues to monitor third party IT infrastructure to ensure appropriate oversight of security, including proper staffing of qualified employees and timeliness of both software and hardware updates and testing. Fitch Reporting has reached out to all servicers in Europe, the Middle East, and Africa that handle both commercial and residential mortgages, and they have reported that operations have not been effected. Some said that additional security measures have been put in place to help prevent further attacks. This, according to Fitch’s official report, “is consistent with our view . . . that servicers should have appropriate plans in place to maintain critical systems which might come under threat from an emergency.” It is of the upmost importance that IT departments remain up to date on the latest trends regarding security risks to their data centers. If threats arise faster than the company can prevent them, those responsible for safeguarding the sensitive personal information of mortgage holders will forever be playing catch up.  Print This Post Subscribe Tagged with: information Security Technology Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Fitch Ratings Warns Servicers Against Ignoring Security Testing Share Savelast_img read more

Bank of America is Taking on the IRS

first_imgHome / Daily Dose / Bank of America is Taking on the IRS Sign up for DS News Daily Subscribe Demand Propels Home Prices Upward 2 days ago About Author: Joey Pizzolato Related Articles Bank of America IRS 2017-09-15 Joey Pizzolato Previous: Mnuchin: GSE Reform On Hold Next: Fannie Mae’s Economic Update  Print This Post The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Headlines Tagged with: Bank of America IRS Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected] Servicers Navigate the Post-Pandemic World 2 days ago Bank of America is Taking on the IRS Share Save September 15, 2017 2,215 Views Bank of America is suing the Federal Government—the Internal Revenue Service, to be exact, for miscalculated interest on overpayments and underpayments.How much are they asking for? $199.8 million, according to a suit (Case Number: 3:2017cv00546) filed Wednesday in the Western District of North Carolina, according to a local report in The Charlotte Observer. The bank attests that the IRS charged interest on both overpayments and underpayments for “a variety of predecessors” as well as institutions it has acquired as far back as the 1980s. The report lists two of those companies as Merrill Lynch and FleetBoston Financial.According to a Justia, the case was filed on September 13, 2017 in the Charlotte Office, through the county of Mecklenburg.The Charlotte Observer reports that Bank of America alleges the IRS miscalculated interest, and while it has received refunds related to Merrill Lynch, the IRS has denied additional claims made by the bank. The paper also reports that Bank of America has filed a separate suit with the agency back in August of 2016 for damages in $15,000.This is a developing story. It is general policy for the IRS to not comment on pending litigation, and Bank of America has yet to release a comment on the matter. Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Congress Targeting Robocalls: What It Could Mean for the Industry

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago  Print This Post Home / Daily Dose / Congress Targeting Robocalls: What It Could Mean for the Industry The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago May 6, 2019 1,880 Views Tagged with: Debt Collection Robocalls Servicers Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Congress Targeting Robocalls: What It Could Mean for the Industry Related Articlescenter_img Demand Propels Home Prices Upward 2 days ago 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 According to an article from the Washington Post, lawmakers have found a “common enemy” in the increased volume of automatic callers or “robocalls.” According to the Post, Americans received around 48 billion robocalls in 2018, and YouMail also reports that robocalls are expected to make up almost half of all calls that Americans receive by the end of 2019.For servicers, the complicated nature of modern robocalls could cause issues. According to the Urban Institute and a report from the U.S. Treasury, the 27-year old Telecommunications Consumer Protection Act (TCPA) may be preventing mortgage servicers from reaching customers when that contact could be helpful. For example, a servicer might not be able to inform borrowers about mortgage relief options or warn about scams, or reach thousands of borrowers with time-sensitive information during natural disasters such as hurricanes, especially when landlines may be down and cell phones are the only option.Rep. Frank Pallone Jr., Head of the Energy and Commerce Committee, proposed a package of legislation that would impose stronger penalties on phone scammers and require telecom providers to adopt authentication tools to enable phone carriers to disclose and verify the origin of an incoming call.“There’s no silver bullet,” Rep. Pallone said. “That’s why it is so important that we address this problem from every side.”TCPA fines can cost anywhere between $500 or millions of dollars, adding onto the already high costs of servicing a mortgage, keeping more servicers from reaching out to borrowers via cell phone. Even if a borrower consents to receive calls from a borrower, the Act does not account for a transferred number.The National Mortgage Servicing Association (NMSA) last year wrote a letter to the to the Federal Communications Commision (FCC), outlining their suggestions for changes to regulations imposed by the TCPA. One suggestion involved a re-examination of the definition of an “autodialer.” For example, the NMSA proposed that it should be made clear that the definition of an autodialer does not include dialing from a list, and that the technology used must involve both generating a phone number in random or sequential order and calling that generated number.In addition, the NMSA supports the FCC’s creation of a reassigned number database as well as a “safe harbor” for businesses to check the database. The NMSA also supports the integration of a more structured process in order for consumers to revoke consent to receive calls from a company, giving consumers peace of mind while reducing the headache for businesses to trying to comply with regulations.Exempting servicers from the Act would give servicers the opportunity to reach out when it would benefit the borrower, and allow borrowers to identify numbers that have been transferred. Another option would be to temporarily exempt servicers from Act requirements specifically during natural disasters in order to send out time-sensitive information. The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Sunny Days for Housing Market, But Challenges Remain Next: Law Firms and Mortgage Servicers Convene in Dallas Debt Collection Robocalls Servicers 2019-05-06 Seth Welborn Sign up for DS News Daily 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. Subscribelast_img read more

Maxine Waters Opposes Proposal to Alter Fair Housing Act

first_img About Author: Mike Albanese Tagged with: Department of Housing and Urban Development Fair Housing Act House Financial Services Committee Housing Discrimination 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 in Daily Dose, Featured, Government, News Department of Housing and Urban Development Fair Housing Act House Financial Services Committee Housing Discrimination 2019-11-25 Mike Albanese The Best Markets For Residential Property Investors 2 days ago  Print This Post Home / Daily Dose / Maxine Waters Opposes Proposal to Alter Fair Housing Act Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Rep. Maxine Waters, Chairwoman of the House Financial Services Committee, opposes the Department of Housing and Urban Development’s proposed changes to the disparate impact standard of the Fair Housing Act. Waters said in a letter to HUD Secretary Dr. Ben Carson that the proposal would make it harder for victims of housing discrimination to get justice. The disparate impact standard holds people accountable for discriminatory impacts of their actions, regardless of whether the discrimination was intentional. “Without the disparate impact standard, a plaintiff would essentially have to prove malicious intent as plain as a ‘No Blacks Allowed’ sign in order to get relief,” Democratic lawmakers wrote in a letter to HUD. “Once a plaintiff proves that a challenged practice or policy has a discriminatory effect, the current standard allows defendants to respond to such a suit by providing legitimate business justifications for their policies and practices.” Waters wrote in her letter that although 31,202 people reported Fair Housing violations in 2018, many more go unreported. The National Fair Housing Alliance estimates that 4 million acts of housing discrimination occur each year. A 2008 survey of 10,000 adults in the nation’s 20 largest cities found that 1 in 4 people, or 68 million, believe they have been treated differently during their home search, Waters added. The Chairwoman said HUD’s proposed rule would weaken the standard by raising the burden of proof on plaintiffs and victims of housing discrimination, while making it easier for defendants to deflect allegations, disincentivizing the collection of demographic data that help have proactive strategies around fair housing, and creating safe harbors that make challenging algorthmic bias difficult. “We remind you that HUD’s mission includes building ‘inclusive and sustainable communities free from discrimination,’” the lawmakers wrote. “HUD’s ability to carry out this mission will be seriously compromised if it moves forward with this proposed rule, and this is no time to weaken our enforcement of the Fair Housing Act.”The Committee said the in 2018 the African-American homeownership rate was the lowest it had been since before the Fair Housing Act was passed. A 2019 study also found that African-American and Latin borrowers are paying $765 million more in annual interest compared to other borrowers. center_img The Best Markets For Residential Property Investors 2 days ago Related Articles Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Maxine Waters Opposes Proposal to Alter Fair Housing Act The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago November 25, 2019 1,971 Views Sign up for DS News Daily Previous: Where Smaller Mortgage Servicers Dominate Next: Could a Vacancy Tax Help Los Angeles’ Affordability Crisis? Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

Housing Insurers Made to Stay

first_img The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Housing Insurers Made to Stay in Daily Dose, Featured, Loss Mitigation, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago California state regulators have announced a one-year moratorium banning insurers from not renewing homeowner’s policies in areas impacted by wildfires, Los Angeles Times reports, as the state has experienced a number of insurers leaving the hardest-hit areas of the state.“I have heard the same story again and again. People getting dropped by their insurance after decades,” said Insurance Commissioner Ricardo Lara. “To add insult to injury, many struggle to find coverage.”Los Angeles Times reports that the plan affects more than 800,000 homeowners in Northern and Southern California who live in ZIP codes next to 16 recently declared wildfire disasters, including high-priced areas such as the Los Angeles, Orange, and Santa Clara Counties.“This wildfire insurance crisis has been years in the making, but it is an emergency we must deal with now if we are going to keep the California dream of homeownership from becoming the California nightmare, as an increasing number of homeowners struggle to find coverage,” Lara added.Redfin previously reported that these counties are at risk of losing more than $2 trillion worth of housing as a result of recent fires.Los Angeles County has 1.49 million households valued at $1.2 trillion, with an estimated median home value of $625,000. Orange County has a total housing value of $502.6 billion, with a median home value of $709,800.“Homes in places like Malibu, the hills around Los Angeles and wine country in Northern California have historically been desirable because the natural beauty of the surroundings has outweighed the risk of natural disaster,” said Redfin Chief Economist Daryl Fairweather. “But with homebuyers and sellers in fire-prone parts of California really starting to feel how environmental risk factors are impacting both the safety and value of their homes, long-term demand will change, though California overall is unlikely to lose its luster. Demand and prices for homes in fire-prone areas will go down, but as a result, they’ll increase in safer parts of the state. California is in the midst of a housing shortage, and the state should take wildfire risk into account when deciding where to focus its building efforts.” Home / Daily Dose / Housing Insurers Made to Stay Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles About Author: Seth Welborn 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. Insurance wildfire 2019-12-05 Seth Welborn Share Savecenter_img Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Post Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Insurance wildfire December 5, 2019 1,996 Views Previous: Motor City’s Foreclosure Payment Purgatory Next: Federal Housing Commissioner Montgomery Updates Congress The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Foreclosure Changes in the Wolverine State

first_img Demand Propels Home Prices Upward 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Foreclosure, News Related Articles Effective January 11, 2020, Michigan will be facing new regulation in regards to notices of foreclosure. Public Act 142 of 2019, formerly titled House Bill 4306, was signed by Michigan Governor Gretchen Whitmer.The new language requires, among other things, the street address of the property, and the name, address, and telephone number of the attorney for the foreclosing party.Residential mortgages also require the statemt: “If you are a military service member on active duty, if your period of active duty has concluded less than 90 days ago, or if you have been ordered to active duty, please contact the attorney for the party foreclosing the mortgage at the telephone number stated in this notice.”Jeff Weisserman, Managing Partner and General Counsel, Trott Law, P.C. notes that the new rule also requires a statement indicating the time and place of the sale; advising that the amount due on the mortgage might be greater on the day of the sale and that placing the highest bid does not automatically convey free and clear ownership.”This statement also encourages a potential purchaser to contact the county register of deeds or a title insurance company, either of which might charge a fee, for further information,” Weisserman said.Many of the state’s forclosures are tax foreclosures. According to Bridge Magazine, county tax foreclosure is a common practice in Michigan, and counties have foreclosed on over 177,000 properties in the state since 2012. Oakland County, the state’s second largest in population, foreclosed on over 5,500 properties between 2012 and 2017 according to state records, but 65% of county foreclosures took place in Wayne County (Detroit).A study from Quicken Loans revealed that as of 2018, 21% of Michigan homeowners were unaware their property was behind on property taxes, and another 61% of renters in tax-delinquent properties were unaware of the home’s tax status. However, property tax foreclosures in Detroit are at a 14-year low. In 2018, 2,920 properties faced property tax foreclosure auction, down from 6,052 in 2017, and far below the peak of 15,000 in 2015. 2019-12-18 Seth Welborn Home / Daily Dose / Foreclosure Changes in the Wolverine State Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save December 18, 2019 1,630 Views Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Previous: ‘Confidence and Stability’ Coming to Housing Market Next: Investors Eyeing Housing in U.S. Economic Growth Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe The Best Markets For Residential Property Investors 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Foreclosure Changes in the Wolverine Statelast_img read more

$13.4M in Investments Proposed for Puerto Rico

first_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post January 13, 2020 903 Views Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Data Provider Black Knight to Acquire Top of Mind 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 Home / Daily Dose / $13.4M in Investments Proposed for Puerto Rico Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Tagged with: Affordable Homes Investment Puerto Rico Previous: SitusAMC Subsidiary RERC Hires Managing Director Next: CFPB Grants Bank of America No-Action Letter Related Articles $13.4M in Investments Proposed for Puerto Rico Demand Propels Home Prices Upward 2 days ago Affordable Homes Investment Puerto Rico 2020-01-13 Mike Albanese in Daily Dose, Featured, Investment, News Six agencies have come together to invest more than $13.4 million in affordable housing in Puerto Rico following the earthquake on January 7, according to the New York Federal Reserve. The largest proposal was submitted by the Instituto para el Desarrollo Socioeconómico y de Vivienda de Puerto Rico at $10.5 million. The proposal would be to promote affordable housing by financing mixed-use development that serves low-income families.A $2 million proposal was submitted to reduce local barriers to housing and community development by establishing a pre-development fund that would provide capital to organizations in housing reconstruction and rehabilitation. Puerto Rico was shaken by a magnitude 6.4 earthquake south of Indios on January 7. The island is still recovering from 2017’s Hurricane Maria when Puerto Rico felt economic losses exceeding $1 billion. Following the earthquake, CoreLogic expects the economic loss to be maintained within the $1 billion mark.“I am concerned because Puerto Rico hasn’t yet fully recovered from Hurricane Maria, and many of the homes on the island are designed for hurricanes and floods – they’re basically built on stilts, which makes them very vulnerable to earthquakes,” said Leisha Delgado, Founder & CEO, Hello Solutions. “Our experience from Maria tells us that there will be challenges coordinating assistance efforts, and communicating with people in parts of the island without power, so they may not know how to get aid, or know that help is on its way.”According to the United States Geological Survey (USGS), this event has been identified as the main shock event (with 97% probability). A magnitude 5.8 event that struck on January 6 in a similar location is now identified as a foreshock.CoreLogic also notes that there is uncertainty from the effect of demand surge, where materials are in short supply from the repairs from Hurricane Maria.“As such, there could be an additional spike in the cost of building materials and reconstruction work,” CoreLogic notes. “Because the island has been struck by two events in close proximity, repair costs could easily increase by up to 33% without federal or local government intervention.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save About Author: Mike Albaneselast_img read more

Did the Great Recession Change the Mortgage Industry?

first_imgAlthough the Great Recession only officially lasted for a total of two years, from 2007 through 2009, its devastating ripple effects lasted—and were clearly felt by all—well beyond that, according to a new report. One main catalyst for this era in real estate history was the highly erratic and unstable mortgage market at the time. However, the problem lied in the fact that no one really knew this was the case until it was too late.From the outside, the economy appeared to be thriving, boasting low-interest rates and teeming with an abundance of mortgage lenders more than eager to offer loans to applicants across the board. With the chance to own a home at their fingertips, many would-be homeowners jumped at the chance to pursue their own slice of the pie, taking a shot at the idyllic American Dream of having it all, including homeownership. At this time, investors were literally banking on the belief that homes would continue to gain value, regardless of the telltale warning signs that were there, but few seemed to notice or regard.With the growing numbers of mortgages being handed out, the inevitable fallout became the fact that a plethora of risky borrowers was among the bunch, all of whom were more likely to—and eventually did— default on their loan payments. Enter the financial crisis and the Great Recession, thus setting an example of how sometimes things really can look and sound too good to be true, and leaving current consumers and prospective buyers and lenders wary of the recent growth in the economy. The signs are all pointing to the fact that it seems as if the market is “banking” on another shoe dropping, assuming yet another crash may just be on the horizon. The barebones of the current state of the mortgage industry are as follows: the majority of people today—especially the younger generations—are in debt and have less (if any) savings or residual income than their elders did at their same age.However, they are still making purchases that—in light of their circumstances—are financially questionable. Such choices include buying a home with very little or no savings. So the question remains: are we doomed to repeat history? It seems the answer is maybe, or maybe not, as credit and mortgage lending standards have become more strict since the Great Recession, yet mortgage lenders today are still approving loans for subprime borrowers, most of whom are applicants with mountains of non-mortgage debt already.  Subscribe Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Did the Great Recession Change the Mortgage Industry? Home / Daily Dose / Did the Great Recession Change the Mortgage Industry? Data Provider Black Knight to Acquire Top of Mind 2 days ago Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad. March 18, 2020 1,264 Views  Print This Post About Author: Andy Beth Miller The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articlescenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Previous: New Foreclosures Rose 3.5% From Prior Quarter Next: Industry Reacts to New York 90-Day Mortgage Relief Plan Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: debt Great Recession housing market 2020 The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago debt Great Recession housing market 2020 2020-03-18 Mike Albanese Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Study: Minority Rental Investors More Likely to Struggle

first_img Demand Propels Home Prices Upward 1 day ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Study: Minority Rental Investors More Likely to Struggle September 24, 2020 1,018 Views Previous: Where Each Presidential Candidate Stands on Housing Next: Study Shows Americans Ill-Prepared for Flooding Subscribe Related Articles Share Save in Daily Dose, Featured, Government, News About Author: Christina Hughes Babb 2020-09-24 Christina Hughes Babb  Print This Post Data Provider Black Knight to Acquire Top of Mind 1 day ago Servicers Navigate the Post-Pandemic World 1 day ago Demand Propels Home Prices Upward 1 day ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Home / Daily Dose / Study: Minority Rental Investors More Likely to Struggle Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 1 day ago Several reports have identified the needs of renters amid a nationwide pandemic. Now information is beginning to emerge  related to its impact on investors. In fact, a new Urban Institute report by Research Fellows Laurie Goodman and Jung Hyun Choi indicates that not only do Black and Hispanic rental investors face increasing economic struggles due to COVID-19, but also this minority group of landlords is more likely to assist their own tenants than are their White and higher-income counterparts.”We found that Black and Hispanic landlords are struggling to pay their mortgages more than white landlords and are more apt to take mortgage forbearance,” the researchers reported. “Despite the struggles, Black and Hispanic landlords are more likely to offer their tenants a rent payment plan, suggesting these landlords are dedicated to keeping their tenants.”The survey suggested that a third or more of surveyed landlords earned a majority of their income from rental properties, and that Black and Hispanic landlords reportedly “have lower incomes,” “own fewer properties,” and “are more likely to have a mortgage than own their building outright.”As a result, the researchers said, “Black and Hispanic landlords are more likely to struggle to make their mortgage payments.””Owning fewer properties makes it harder to diversify risk and increases the financial volatility of rental income when a crisis hits,” they said, pointing out a “10 percentage-point gap between the shares of White and Black landlords with incomes below $75,000 and a slightly smaller gap between White and Hispanic landlords.”And that, “Nearly half of Hispanic landlords own only one property and 40% of Black landlords own only one property (versus 32% of white landlords). White landlords have five or more properties more often as well.”The study revealed that 12% of all landlords with a mortgage are in forbearance. Those in forbearance are disproportionately Black and Hispanic, the researchers said, “reflecting their less stable financial situation compared with white landlords. About 20% of Black landlords, 14% of Hispanic landlords, and 9% of white landlords have at least one mortgage in forbearance.”Even with an “unsteady financial situation,” Urban Institute reported, “more Black and Hispanic landlords offered rent payment plans to their tenants than white landlords. Overall, 38% of landlords offered rent payment plans to their tenants, with 61% of tenants accepting the offers.The Urban Institute suggested that minority and struggling investors need more support from their government.”[Tenants’] inability to pay rent will affect mom-and-pop landlords with fewer than 10 rental units, who own slightly more than half of all rental units. Without government support for rental payments, by direct payment to either the tenant or the landlord, these small operators may not be able to continue making their mortgage payments and keep their tenants housed,” wrote Choi and Goodman. “The extension of eviction moratoriums will help tenants stay in their homes longer, but for many landlords who are struggling to make their mortgage payments and are disproportionately people of color, there needs to be additional policies to alleviate their financial burdens. “Their full report is available at Urbanwire.com. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 1 day agolast_img read more