Posts Tagged ‘collateral’

Manufactured Housing Communities Grow in Mortgage-Backed Security Deals

November 11th, 2013 Comments off

Although traditional property types such as multifamily, office, industrial and retail continue to dominate the majority of collateral in commercial mortgage-backed security (CMBS), non-traditional properties are increasing. Specifically, as informs MHProNews, manufactured housing communities (MHC) are making up a larger part of the deals. Although this asset class accounted for less than one percent in 2010, it contributed 2.5 percent in 2011, 3.2 percent in 2012 and has grown to 5.9 percent through Sept. of this year.

(Photo credit: Sun Communities, Inc.)

Home Prices Continue Rising

July 30th, 2013 Comments off

While the S&P/Case-Shiller national home price index of the 20 largest markets remains 24.4 percent below the peak of June 2006, it rose 12.2 percent in May above May 2012, the largest year-over-year increase since March 2006. April 2013 rose 12.1 percent over April 2012. A year ago homes that had been on the market for many months, even years, began selling, with prices rising each month since June 2012, and each month saw a bigger increase than the previous month. The rise in mortgage rates has yet to stem the rise in prices, which have been fed by an accompanying drop in foreclosures. Some of the markets hardest hit by the housing bubble are the ones experiencing the largest current gains: Prices in San Francisco, Las Vegas, Phoenix and Atlanta are all up more than 20% from a year ago. Some fear the housing bubble may return, according to what CNNMoney tells MHProNews. But Joseph LaVorgna, chief US economist for Deutsche Bank, says, “Affordability remains near historic highs despite the recent rise in rates and home prices. And the increase in home prices should encourage banks to ease lending standards for mortgages, since the collateral for the underlying loan is appreciating in value.”

(Image credit: etftrends)

Turned down by a Bank? Try Craiglist

November 8th, 2012 Comments off

NNMoney reports the latest twist on Craigslist is people looking for co-signers on loans because they do not have good enough credit on their own. A would be borrower in Ohio is offering a tractor and a car as collateral for someone to co-sign a $5,000 personal loan. A student in New Jersey who offered $2,000 to anyone who will loan him $8,000 received numerous responses from scammers, and even paid a matchmaking service to hook him up with someone who would help, but to no avail. While borrowers can easily lose their payment and/or their credit identity, the risk is greater for the lender who may lose their identity, their money, and if the lender defaults, may be on the hook for collection fees, garnishment of wages, and a black mark on their own credit score. John Ulzheimer of SmartCredit says, “You’re co-signing for someone a bank has already identified as someone who doesn’t deserve the loan.” As MHProNews has learned, according to the Federal Trade Commission (FTC), three out of four co-signers are asked to repay loans that have defaulted. A signed agreement between the borrower and lender disavowing the responsibility of the lender will not deter the bank from going after the co-signer.

(Image credit: TotalMortgage)