Posts Tagged ‘NationalMortgageNews’

Freddie Mac Forecasts Best Year in Ten for Housing Industry

April 1st, 2016 Comments off

crystal ball foto searchAccording to what Freddie Mac tells MHPrpNews in nationalmortgagenews, despite low wage growth this year, the housing market will reach its highest level in sales, housing starts and housing prices since 2006. It will be largely driven by interest rates that remain below four percent for a 30-year fixed rate, even given the Fed’s rate hike.

Wage growth is “’anemic, barely keeping pace with inflation,” says Freddie, and labor force participation has fallen. (MHProNews adds: In the one day since this article was published, 215,000 more jobs were added in March, and the unemployment rate rose from 4.9 percent to five percent, indicating more people were out looking to rejoin the work force.)

Freddie cautions: “If wages and incomes do not start rising, then rising interest rates, home prices and rents will squeeze households and ultimately slow housing markets.” However, a slowdown in site-built homes could be a spur for the manufactured housing industry. ##

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

Proposal would Merge the GSEs, Ensuring Credit Access for Affordable Housing Initiatives

March 26th, 2016 Comments off

fannie mae hq    yahoo! and reuters   jonathan ernst creditBuilding on steps the Federal Housing Finance Agency has taken to reform government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac, five housing policy experts have proposed merging the two entities into a new corporation, called the National Mortgage Reinsurance Corp. (NMRC), that would continue risk-sharing initiatives with private investors and mortgage insurers.

In addition to acquiring conforming loans through originators or loan aggregators and issue securities, the NMRC would also guarantee timely payments and “ensure credit access for underserved communities through affordable housing initiatives,” as nationalmortgagenews reports. MHProNews understands the FHFA recently made a proposal for the possibility of a secondary market for chattel loans with Fannie and Freddie.

However, the NMRC would differ in that “It would be required to transfer all noncatastrophic credit risk on the securities that it issues to a broad range of private entities,” and its mortgage-backed securities would be fully backed by the U. S. government through the imposition of a G-fee that would cover any government risk. The FHFA would regulate the new agency, but Congress would have to approve a GSE merger.

Isaac Boltansky, an analyst with Compass Point Research and Trading, said, “While legislative GSE reform remains a distant dream at this point, the NMRC proposal represents a noteworthy mile marker in the policy conversation as it reinforces our belief that the mortgage finance debate in D.C. has shifted from liquidating the GSEs toward the consideration of a more simplified set of reforms.” ##

(Photo credit: Yahoo & Reuters/Jonathan Ernst–Fannie Mae headquarters)

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

Mortgage Delinquencies Fall to Lowest Rate in Nine Years

March 25th, 2016 Comments off

home buying   firstbanktrust  creditAccording to information received by MHProNews from nationalmortgagenews, mortgage loan delinquencies fell to their lowest level in Feb. since 2007, dropping 13 percent month-over-month, and 16 percent from last year to 4.45 percent in Feb. 2016.

Black Knight Financial Services states that for the first time in nearly eight years the noncurrent inventory fell under the three million mark, dropping by 327,000 units from Jan. to 2.9 million in Feb.

However, mostly due to repeat foreclosures in Massachusetts, New York and New Jersey, foreclosure starts spiked 17.25 percent to 84,300.

Noncurrent rates rose in only two states the past six months, North Dakota and California—1.9% and 2.6 percent, respectively–although Mississippi led the country with the highest noncurrent rate of 11.43%.

Additionally, Knight reported February’s monthly prepayment rate rose ten percent month-over-month to 0.89%, but 22 percent less than last year. ##

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

HELP Act Designed to Expand Lending Opportunities in Rural Areas

March 23rd, 2016 Comments off

mortgage app   texaslendingtoday creditAs nationalmortgagenews tells MHProNews, the Consumer Financial Protection Bureau (CFPB) has put in motion a new rule that expands lenders’ ability to originate qualified mortgages in rural and underserved markets. The agency’s final rule, which will take effect March 31, implements the Helping Expand Lending Practices (HELP) in Rural Communities Act.

In a news release, CFPB Director Richard Cordray said, “This rule provides broader eligibility for lenders serving those areas to originate balloon-payment qualified and high-cost mortgages.”

While the CFPB has previously pushed for more flexibility for community banks that operate in rural and underserved areas, the HELP Act expands the category of rural lenders that can qualify to originate loans under the Truth in Lending Act. ##

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MHI Raps FHFA’s Duty to Serve Rule for not Aiding Individual Homebuyers

March 19th, 2016 Comments off

mortgage andyenstallblog creditIn a letter to the Federal Housing Finance Agency (FHFA), the Manufactured Housing Institute (MHI) is pressing the government-sponsored enterprises (GSEs) to back chattel loans, which apply to manufactured homes (MH) not secured by real estate, according to nationalmortgagenews.

Requiring the GSEs to purchase chattel loans as part of their statutory Duty to Serve is the single most important step the FHFA can take to improve access to mortgage credit for manufactured housing consumers,” MHI senior vice president of legislative affairs Lesli Gooch said in a news release. “MHI’s written comments provide a roadmap on how FHFA and the GSEs can safely and profitably purchase these loans.”

Manufactured housing is an underserved market that the Housing and Economic Recovery Act (HERA), passed in 2008, requires GSEs to serve. With chattel loans comprising 70 percent of the MH market, MHI says the Duty to Serve Credits should extend to chattel loans, as long as they meet underwriting standards and provide consumer protections, as MHProNews has learned.

While the FHFA’s proposed Duty to Serve rule incentivizes states to reform titling laws so chattel loans can be converted into real estate loans, the rule only requires the GSEs to assist in the financing of manufactured home communities with fewer than 150 home sites, not individual chattel loans.

Although the FHFA did suggest setting up a pilot program for the chattel loans, the rule as proposed would not make financing more affordable for individual homeowners.

Gooch wrote, “If implemented, MHI’s recommendations will bring to manufactured housing consumers many of the same benefits available to consumers with conventional mortgages, namely greater access to credit with potentially more affordable financing, more lenders in the market, and the ability to refinance as market conditions change.” ##

Editor’s Notes:  

(Image credit: andyenstallblog)

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

Fannie Mae Survey Indicates Consumer Confidence Rising on Housing Market

March 8th, 2016 Comments off

apartment quest credit   apart for rentAccording to the National Housing Survey questions that Fannie Mae asks consumers each month, the GSEs Home Purchase Sentiment Index rose to 1.2 percent to 82.7 in Feb. over Jan., as nationalmortgagenews informs MHProNews.

Consumers who said their income was noticeably greater than 12 months ago increased three percentage points to 15.

Respondents who said now is a good time to purchase a home rose to 63 percent, while the number who said it is a good time to sell a house fell to seven percent.

Another positive note: the number of respondents who are not worried about losing their job increased to 87 percent.

Doug Duncan, Fannie Mae’s chief economist, said high home prices have been a deterrent to would-be home buyers, but added, “A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.” ##

(Photo credit: apartmentquest)

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Minorities, Millennials Still Believe in American Dream

March 3rd, 2016 Comments off

homeownership   fotosearch stock photoThe semi-annual Housing Confidence Index poll survey conducted by Zillow reveals that 65 percent of Millennials (18-34) and almost 70 percent of Hispanics agree with the connection between homeownership and the American Dream. Millennials in Los Angeles-Long Beach-Anaheim agreed the most, 86.9 percent, while that same demographic in Philadelphia agreed the least at 44 percent, as reported by nationalmoretgagenews.

Next on the list are those 65 and older, essentially the Millennials’ grandparents who support the association, at 63.9 percent, followed by people 50-64 who agree the least at 56.9 percent. As MHProNews understands, it may be the last group who were the most affected by the foreclosures and turn down in the housing market.

Racially, the survey discovered that 64 percent of Asian respondents make the association between homeownership and the American Dream, followed by 63 percent of black respondents, and whites with the least agreement at 57.6 percent.

Surveying 10,000 renters and homeowners across the country, research and consulting firm Pulsenomics did not exactly define “American Dream,” but did indicate homeownership is “integral” to the American Dream.

The American dream is really about opportunity, which means a lot of things to a lot of different people,” Svenja Gudell, chief economist at Zillow, said in the release. “For young Americans and Americans of color, the opportunity to own a home is a big part of that dream.”

However, despite Millennials optimism, only 46 percent of the renters among them were confident in their ability to own a home. That number was 50 percent just six months ago. Zillow points out this age group has rented longer than previous generations as home prices rise faster than wages.

Terry Loebs, founder of Pulsenomics, said housing confidence has risen in every metro area survey the past two years. “Amidst turbulent financial markets and unsettling election year politics, confidence in the U.S. housing market has proven resilient in recent months, even as investor confidence, business confidence and consumer economic sentiment have wavered,” he said. ##

(Image credit: fotosearch–the American Dream of homeownership)

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

TRID Rule Continues to Hamper Mortgage Lending Industry

March 3rd, 2016 Comments off

mortgage  housingwire creditAccording to a survey by the American Bankers Association (ABA), the Truth-in-Lending/Real Estate Settlement Procedures Act integrated disclosures (TRID) that took effect Oct. 3, 2015, continues to leave a trail of vendor software problems, longer processing times, and closing delays that average eight days, although some have taken as long as 20 days.

According to what nationalmortgagenews tells MHProNews, many lenders are still waiting for updates on their loan origination systems, said Robert Davis, a senior vice president of the ABA. “As we anticipated, our bankers are struggling to comply in part because the systems being provided by vendors are incomplete or inaccurate,” Davis said in a statement. “The causes of many of these systems problems are ambiguities in the TRID rule that require resolution.” In the survey of 548 banks, more than three-fourths are still awaiting updates to their loan origination systems (LOS).

Lenders had requested the Consumer Financial Protection Bureau (CFPB) delay implementation a second time beyond Oct. 3, but the agency declined. Now, Davis said the CFPB needs to resolve some of the issues and questions lenders have in order to smooth out the LOS delivery problems.

The ABA discovered many banks quit making construction loans, home equity loans and adjustable-rate mortgages because of a lack of “adequate compliance direction.##

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

MHI’s Lesli Gooch Underscores the Need for GSE’s Purchase of Chattel Loans

February 1st, 2016 Comments off

Lesli_M_Gooch__MHI_senior_vice_president_forgovernment_affairsWriting for nationalmortgagenews, the Manufactured Housing Institute’s (MHI) senior vice president for government affairs, Lesli M. Gooch, noting the average price of a new manufactured home is $64,000 as compared to a new site-built home price of $374,100, states manufactured housing presents the single most affordable option for lower income families.

Manufactured home (MH) loan volume for loans below $75,000 dropped by five percent in 2014 despite the overall housing market improvement. The Census Bureau reports of the 440,000 new single-family homes sold in 2014, only 12.8 percent were MH, as MHProNews has learned. MH shipments in that year accounted for 9.1 percent of single-family housing starts, and six percent of all housing starts.

Congress previously identified manufactured housing as an underserved market that the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac should have a duty to serve (DTS). In Dec., 2015 the Federal Housing Finance Agency (FHFA) proposed a new DTS rule which would require the GSEs to purchase chattel loans for manufactured homes, thereby providing a secondary market for manufactured housing loans.

Including chattel loans in duty-to-serve would help by providing a secondary market for those loans and help provide more access to credit to many moderate- and lower-income consumers. A robust secondary market for chattel loans is critical to ensure sustainable access to affordable housing,” writes Gooch. The Dodd-Frank Act provides an array of protections for purchasers of manufactured homes.

She adds: “Rising home prices and rental rates are squeezing American buyers, and manufactured housing provides a key alternative. To restore the American dream of homeownership for these creditworthy families, housing policy must be fixed to ensure this underserved market receives the same.” ##

(Photo credit: nationalmortgagenews-Lesli M. Gooch)

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

New Tax Law will only Increase Affordable Housing Units Tepidly

January 15th, 2016 Comments off

mfg home horizon land co creditAmid the pressing need for affordable housing in this country, as rents rise and incomes remain static, a federal tax law enacted last month may lead to the increased production of affordable rental housing, although the rise may be minimal, according to what housing experts tell nationalmortgagenews.

A part of the 1986 Tax Reform Act, the federal tax credit program has not had a notable increase since its creation, although over 2.6 million affordable housing units have benefited from its building and rehabbing services over 30 years, as MHProNews understands.

Applying to new construction or rehabbing of low-income housing, the tax credits are one of the primary methods for banks to earn Community Reinvestment Act credits since they often provide loans for affordable housing.

Tucked into the $1.1 trillion spending bill that President Obama signed Dec. 18 is a provision that “made the annual rate used to calculate the low-income housing tax credit permanent at 9%, up from a previous floating rate of roughly 7.5%. In 2008, when the financial crisis hit, Congress set the temporary annual tax credit rate at 9% and extended it twice before the rate expired and floating rates went into effect, upsetting the apple cart for the industry.”

Beth Stohr of U. S. Bancorp said the law could mean projects will finish sooner, but she says anything to increase stability is good. “There are certain markets where this is going to have a greater impact. For big states, the dial still moves, but not explosively,” said Stohr.

Bankers say the shortage is so severe—last year, an affordable housing building on New York’s upper westside with 55 units drew 88,000 applicants– the permanent rate will make but a miniscule difference, costing the government $19 million over ten years.

Fred Copeman of CohnReznick said the floating rates often resulted in developers having gaps between available financing and actual development costs, resulting in fewer affordable housing properties built. He said affordable rental vacancy rates typically hover around seven percent, but recently have fallen to below one percent.

Commercial banks account for 85 percent of the tax credit market volume, which was near its all-time high of $12.5 billion in 2015, up from $4.8 billion in 2008, and $9 billion in 2006.

While the tax credit program produces abut 90,000 units annually, the Harvard Center for Joint Studies says it estimates the shortage in affordable housing amounts to eight million units. Industry leaders are likely to lobby Congress to increase the number of tax credits, which could add to the affordable housing stock.

For MHProNews and MHLIvingNews Publisher L. A. “Tony” Kovach’ letter to Rep. Jeb Hensarling, Chairman of the Financial Services Committee, on how HUD could help reduce poverty and dependency, click here. ##

(Photo credit: Horizon Land Co. manufactured home)

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