Posts Tagged ‘NationalMortgageNews’

Inventory of New Homes Continues Falling

May 23rd, 2016 Comments off

housingwire creditAs nationalmortgagenews informs MHProNews, new home listings fell in April 1.1 percent, says real estate brokerage Redfin, the first year-over-year loss since Aug. 2014. Noting the steepest declines were in the Northeast, Redfin says nearly two-thirds of the markets it follows had fewer listings during the month than a year ago. Listings in Boston, Philadelphia and New York dropped over ten percent.

A slowdown in new listings reflects a lack of confidence on the part of the homeowner that they can find a desirable home to purchase,” Redfin chief economist Nela Richardson said in a news release Thursday. “This triggers a domino effect down the supply chain that leads to lower sales in tight markets.”

Bidding wars were nearly the norm in Portland, OR and Seattle, where half of all new listings sold in eight days or less, the fastest in the nation. Of offers written by Redfin in Seattle, 77.9% of them faced competition, setting a new record. In Portland, the rate was 68.5.

Meanwhile, nationwide inventory of new homes on the market continues to fall, now for the seventh consecutive month, -3.2 percent; home prices rose 4.8 percent in April; and new home sales increased 2.5 percent. also in April.

The median sale price rose 17.6 percent to $226,000 in Providence, RI, giving it the highest price growth, while Memphis and Nashville, TN had the highest sales growth, 32.6 percent and 31.1 percent, respectively. ##

(Image credit: housingwire–inventory of homes for sale falls)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Rising Home Prices Partially Negate Low Mortgage Rates

May 2nd, 2016 Comments off

mortgage app   texaslendingtoday creditJacksonville, Fla.-based Black Knight Financial Services tells MHProNews rising home prices across the country are offsetting the advantage of low mortgage rates.

The fall of interest rates 35 basis points since Jan. 1, 2016 would translate to a savings of approximately $44 dollars a month. “While borrowers might expect that $44 per month savings home price appreciation, which Black Knight calculated at an annual rate of 5.3% in February, it would shrink that savings to just $18 per month nationwide,” reports nationalmortgagenews.

Higher home prices have totally negated savings from low interest rates in Washington, Colorado and Oregon.

Ben Graboske of Black Knight said despite rising prices, the mortgage on a median-priced home is still better than it was in Dec. “If rates hadn’t dropped over the past four months, it would cost an additional $28 to buy the median-priced home today as compared to December 2015,” he noted.

The drop in mortgage rates has added 2.3 million borrowers to the refinanceable population year to date, totaling 7.5 million across the nation.

Additionally, Black Knight reports the delinquency rate fell 8.37 percent from the previous month to 4.08 percent, placing the figure squarely below the rate from 2000 to 2005. The report noted the serious delinquency and the 90-day delinquency rates are still high.

Mississippi had the highest percentage of noncurrent loans while Arkansas had the lowest. ##

(Image credit: texaslendingtoday)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

MHARR, MHI Spar over FHFA & Duty To Serve Manufactured Housing via GSE Chattel Lending

April 29th, 2016 Comments off

federal_housing_finance_agency__logoOn April 26, 2016 the Federal Housing Finance Agency (FHFA) held a roundtable discussion with manufactured housing industry leaders, inviting those who commented on the proposal, to get their input on the FHFA’s proposed “Duty to Serve” rule, according to the Manufactured Housing Institute‘s (MHI) Housing Alert to MHProNews.

Lesli Gooch, Senior Vice President of Governmental Affairs at the MHI, said, “Requiring the government-sponsored enterprises (GSEs) to purchase chattel loans as part of their statutory Duty to Serve Underserved Markets is the single most important step the FHFA can take to improve access to mortgage credit for manufactured housing consumers.”

The FHFA’s Duty-to-Serve rule would require the GSE’s to support low-income housing for three underserved housing markets, one of which would “bring to manufactured housing consumers many of the same benefits available to consumers with conventional mortgages.” The other two markets are affordable housing preservation, and homeownership opportunities in rural areas.

The Manufactured Housing Association for Regulatory Reform (MHARR), noting previous undocumented closed door meetings with unknown consequences, describing the meeting as hastily called with a preponderance of MHI representatives (11 of the 18 attendees were from MHI) and officials from the largest businesses, says it was a “whitewash” that offers but a glimmer of hope for DTS chattel lending. MHARR states while MHI affiliated finance arms support DTS, it wants to impose restrictions on lender participation in any DTS chattel program. This could restrict competition and continue the high interest rates,

What MHARR notes was most unusual, the meeting did not include anyone from consumer groups, or from the GSEs who are responsible for implementing the DTS rule. The GSEs – Fannie Mae and Freddie Mac – have a history of opposing the securitization of MH chattel loans, but they were not in attendance.

While MHI had a statement that Lesli Gooch read, as noted above, MHARR had a list of the hows, whys and wheres of the importance of serving low income residents that Congress had intended with its Duty-to Serve directive. “Excluding manufactured home chattel loans from DTS would continue to force low and lower-income purchasers, in particular, into the higher-cost loans currently provided by the industry’s two dominant finance companies, says MHARR.  Their full statement on this topic is linked here. MHI has requested that their full statements not be included in MHProNews reports.

MHARR’s concerns are indirectly echoed by a previous report by the National Mortgage News, which indicated last fall that the FHFA getting the GSE’s to do chattel loans was all but a done deal.  They cited support by consumers groups as well as the MH industry’s associations as reasons for their report.  

It was precisely that widespread support for this rule by interested stakeholders that caused NMN to project the adoption of chattel lending by the GSEs, and why MHARR keeps raising the issue as to what happened behind closed doors that may have caused this deal to go sideways? MHARR has repeatedly asked FHFA to release the minutes of all meetings by the FHFA and any other party, including consumer groups and MHI.

Finally, MHARR warns if the FHFA does not “include a robust and competitive program for manufactured home chattel loans within a final DTS ruleCongress will be asked for direct remedial legislation or legal action may be taken. Congress has done its job. The FHFA must now do its work.”

The FHFA did not have a timetable for the issuing of the final rule. MHProNews has long felt that this ought to be a simple case of enforcing the law, which requires the GSE’s to make such loans. The Daily Business News will continue to track this topic.  ##

(Image credit: Federal Housing Finance Agency)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Challenges to CFPB Constitutionality could Create Financial Havoc?

April 28th, 2016 Comments off

consumer_financial_protection_bureausteve rhode slas get oug of debt org__kicks_aWriting in nationalmortgagenews, Craig Nazzaro says there are two significant court cases now challenging the authority and structure of the Consumer Financial Protection Bureau (CFPB), both of which would have been avoided had the agency been established with a five-member commission to operate it, not a czar, and with congressional oversight. The current director, Richard Cordray, has been accused of being heavy-handed in some of his rulings, as MHProNews has observed.

Its funding comes through the Federal Reserve at the request of the director, not Congress. The director is appointed by the president and confirmed by the Senate for a five-year term, and can only be removed by the president for just cause.

PHH Mortgage is challenging CFPB’s authority, and that of Director Cordray, while also appealing a $109 million judgment by the agency for kickbacks it received. As MHProNews reported April 14, 2016, that amount was reduced by an administrative law judge to $6.5 million, although PHH received a stay on that fine.

In the second case, a District Court judge ruled the CFPB does not have authority over a for-profit college accreditor it had sued.

PHH Attorney Ted Olson, noting the agency lacks the checks and balances that is the backbone of the U. S. constitution, said, “The separation of powers is what protects our liberties as individuals in this country.”

Legal experts have considered the effect of removing the “just cause” provision as a means for replacing the CFPB’s director with whomever and whenever the current administration decides.

More confounding would be if the court decides the agency is unconstitutional. “What happens with all the rules the bureau promulgated? Untold sums have been spent on industry compliance with the CFPB’s rules. Would those rules still apply? What about the enforcement actions that have already been finalized or the monies paid out under various consent orders?,” writes Nazzaro.

While lawmakers continue to attempt to reform the structure and accountability of the CFPB, a ruling in the PHH case is expected by the end of summer. Likely, the case will work its way through the D. C. Circuit Court and end up on appeal before the Supreme Court. ##

(Editor’s Note: The author Craig Nazzaro, writing in NMN, shared his take on this topic, which our Matthew Silver has correctly covered.  This should NOT be construed to imply that MHProNews agress with that assessment.

This publisher has editorially stated for some time that on the face of it, the MLO rule at a minimum clearly seems to violate the 1st Amendment rights of free speech that every American has.  To try to restrict free speech in the fashion the CFPB does is, to this editor’s mind, unconstitutional.  At association meetings, this editor has shared that point publicly. MHProNews believes the facts prove that the industry, MH home owners and the home buying public will all be better off when the principles found in HR 650/S 682 are enacted into law, or are voluntarily implemented by the CFPB.)

(Image credit:

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Freddie Mac 2016 Forecast: Housing will Continue Growing, GDP to Slow

April 26th, 2016 Comments off

house under const  naked philly  creditFollowing a tepid first quarter, government-sponsored enterprise (GSE) Freddie Mac reports the mighty dollar spigot of consumer spending, manufacturing, trade and auto and retail sales for the first quarter has tightened, with an estimated GDP (gross domestic product) of 1.1 percent growth instead of the expected 1.8 percent.

As nationalmortgagenews tells MHProNews, Freddie expects GDP growth for the year at 2 percent.

While the addition of jobs to the market is good for the workers and the economy, more people who have been unemployed are re-joining the work force, in addition to younger workers, which depresses wages. 215,000 jobs were added in March.

However, Freddie maintains a much more positive attitude toward the housing market, saying continuing low mortgage rates and a growing job market will spur housing starts to 200,000 units each of the next two years. While that will ease the pressure on prices, the low inventory of affordable housing continues to pose a challenge.

As home sales rise, outstanding mortgage debt will also increase, by 3.5% in 2016 and 4% in 2017; lower rates will also increase refi activity. ##

(Photo credit: nakedphilly–new home  in Philadelphia)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Inventory of Entry-value Homes Slipping, Raising Prices

April 23rd, 2016 Comments off

homeownership   fotosearch stock photoAccording to the first-quarter Zillow Real Estate Market Reports, rising values for entry-level homes may dash the hopes of would-be first-time homebuyers during the traditional spring buying season.

The cost of entry-level homes, those in the bottom third of the market, are rising the fastest among the largest markets in the U. S., as nationalmortgagenews tells MHProNews.

The median value of entry-level homes in Denver rose the most, 20 percent over the last year, while inventory level fell 13 percent. Portland, OR and Dallas experienced the next largest gains in value, but Portland saw the inventory of entry-level homes fall 40 percent over last year.

It’s going to be a tough home-buying market this spring, especially for first-time buyers or even people looking to move up into a slightly more expensive home,” Zillow chief economist Svenja Gudell said in a news release Friday.

Meanwhile, homes in the top tier are undergoing price cuts more frequently, increasing 1.6 percent from last year. ##

(Image credit: fotosearch)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.


Foreclosure Continues to Haunt One-time Homeowners

April 13th, 2016 Comments off

rent versus buy   rent-directEven though years may have gone by since they last owned a home, losing a home to foreclosure has turned many people off to the whole process of buying a home. Dan Sullivan, a foreclosure prevention specialist in Pittsburgh, said he has seen people who have worked for five or six months with a mortgage officer, only to be turned down for a loan, according to nationalmortgagenews.

Once the shock of the foreclosure and the move is over, they feel at ease with their current situation,” he said. “They are happy with their landlords, and renting allows more freedom and less stress for them. I had one client say to me, ‘I’ll never own a rake again.'”

The Urban Institute’s Housing Finance Policy Center found 19 million renters who had owned a home in the last 16 years, and 96 million renters who have not had a mortgage in that same period of time. Sullivan said it can take two to four years to rebuild their credit above 620, the typical threshold needed to obtain a mortgage.

Paying utility and credit card bills on time counts only on a normal credit report, as MHProNews understands. Lenders will obtain a mortgage credit report, and if the applicant lost a home to foreclosure in the past—i.e., was delinquent making payments in a timely fashion, as many were—that can cut the legs out from under their application. Foreclosure means there was a loss of an appreciating asset as well as economic stability.

Patricia Whitaker, of Innovative Housing Opportunities, an affordable housing developer, said “What we find is so many renters are paying more than 50% of their income for rent and are unable to save the sufficient down payment to even get into homeownership or get back into it,” Whitaker said. “It’s very difficult to get into the housing market with rising rents and so much of the household income going towards rent.” ##

(Image credit: rentbuydirect)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Confidence in Housing and Job Markets Weaken in March

April 9th, 2016 Comments off

unhappy face  fotosearchConsumers growing pessimism about the economy is beginning to affect the housing market, reports nationalmortgagenews. In a monthly survey conducted by Fannie Mae, the GSE’s Home Purchase Sentiment Index fell 2.5 points from Feb. to 80.2 in March, the lowest reading in the past 18 months.

The survey revealed the share of consumers who stated their income was substantially higher than one year ago fell four percentage points to 11 percent.

Consumers feel less secure in their jobs than one year ago, MHProNews has learned. The survey indicated the number of respondents who said their confidence about not losing their job fell 7 percentage points to 68%.

The number of respondents who said now is a good time to buy a house slipped 2%; those who said now is a good time to sell a house dropped by 8 percentage points to negative 1%.

Doug Duncan, Fannie Mae’s chief economist, said in a news release, “The gap between the share of consumers who think the economy is on the wrong track and the share who think it is on the right track has widened, nearly matching its reading last August, when concerns regarding China and oil prices led to the biggest stock market plunge in years.” ##

(Photo credit: fotosearch–worried man)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

First-time Homebuyers Want Larger Home

April 7th, 2016 Comments off

home buying   firstbanktrust  creditAccording to the Homebuyer Insights Report from Bank of America, first-time homebuyers are not considering starter homes, reports nationalmortgagenews. The report revealed that 75 percent of new homebuyers prefer to buy a larger home to begin with. Additionally, 35 percent of those surveyed plan to retire wherever they buy.

MHProNews has learned 43 percent of Gen Xers, those born between 1965 and 1980, have chosen to put off purchasing a new home until they have reduced their debt load. D. Steve Boland, consumer lending executive for Bank of America, said, “Today’s aspiring homebuyers want to be selective and believe they should wait until they can afford to buy a home they’ll live in for years to come.”

Thirty-two percent of Millennials also would want to reduce their debt before purchasing a home, although 66 percent say they would need parental assistance to buy a home.

Of veterans in the homebuying experience, 75 percent said they made sacrifices in order to purchase their first home, with nearly half saying they sacrificed travel, 37 percent put off buying a new car, and just under a third chose not to add new features to their home.

For this Bank of America report, Braun research surveyed 1,001 people 18 or older who want to purchase a home in the future. ##

(Image  credit: firstbanktrust)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews

JPMorgan Chase Project Adds Affordable Housing, Creates 2,650 Jobs

April 7th, 2016 Comments off

mfg homes  nbcsandiego creditChase’s PRO Neighborhood’s $125 million program for disadvantaged neighborhoods nationwide provides funding to acquire, upgrade and provide affordable housing in areas headed for gentrification.

Another PRO aspect is working with Community Development Financial Institutions (CDFI) to pool resources and build health and education facilities as well as support community services.

Chase’s 2014 $33 million PRO Neighborhood pilot program resulted in raising $226 million, seven times the original amount, more capital for local economic and social service projects.

According to what MHProNews has learned from nationalmortgagenews, “This has resulted in $100 million in loans, financing first-time home purchases, the preservation and development of over 2,000 units of affordable housing, lending to over 130 small businesses, and creating and retaining 2,650 jobs.” ##

(Photo credit: nbcsandiego–affordable manufactured housing)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.