Posts Tagged ‘NationalMortgageNews’

Real Estate Losses in Western North Dakota Start to Mount

January 5th, 2016 Comments off

mod mancamp williston nd  associated press creditAs oil drilling in North Dakota scales back due to the worldwide drop in oil prices, Morningstar Credit Ratings tells nationalmortgagenews nearly $125 million in securitized loans backed by real estate may be in jeopardy. The debt represents over a third of nearly $340 million of commercial mortgage-backed securities connected to the Bakken Shale oil fields.

As MHProNews reported numerous times, including Sept. 13, 2013 and as recently as Sept. 4, 2014, the housing shortage led to a build-up of manufactured and modular housing in the western North Dakota area around Williston, which prompted some of the highest apartment rental prices in the country.

Investment in new buildings to accommodate the oil patch workers began in earnest in 2006; but with the rapid drop in oil prices recently, thousands of oil workers have been cut, reducing the demand for housing in the Williston area.

Three of the four largest loans represent combined losses of $16.5 million if they have to be liquidated. They include the Strata Estates Suites in Williston and Watford City, the Value Place Williston hotel and Roosevelt East Apartments in Williston. An appraisal in November on the Strata Estates loan revealed it was 65 percent below the value of the initial loan in 2013.

The fourth loan is tied to hotels in Minot, ND which is expected to retain its value. ##

(Photo credit: Associated Press-modular mancamp in Williston, North Dakota)

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

Government Accountability Office Evaluates Dodd-Frank Act Effects

January 5th, 2016 Comments off

government accountability office--wikipediaAccording to a report released by the Government Accountability Office (GAO), as nationalmortgagenews tells MHProNews, the Dodd-Frank Act is expected to have a $100 million impact on the bottom lines of community banks and credit unions in the form of higher expenses and forgone revenues. Regulators continue to verify actual costs.

The full impact of the Dodd-Frank Act remains uncertain because many of its rules have yet to be implemented and insufficient time has passed to evaluate others,” the GAO said.

Regulators told us that it is still too early to assess the full impact of Dodd-Frank Act rulemakings on community banks and credit unions, and while they have heard concerns about the increase in compliance burden, they have not been able to quantify compliance costs.”

Particular rules in Dodd-Frank created an increased compliance burden, especially in smaller lending institutions. Fears about loans that are not qualified mortgages have led to reduced loan activities lest the lender face litigation or the inability to sell those loans to secondary markets.

While the GAO acknowledged there were some initial contractions of credit availability, trade groups see this as the need for more regulatory relief from Congress. Today’s GAO report confirms that Dodd-Frank regulations have increased compliance burdens on credit unions,” Dan Berger, president and chief executive of the National Association of Federal Credit Unions, said.

Meanwhile, the National Credit Union Administration (NCUA), the only federal financial regulator to leave a comment, said it would like to see the differences between banks and credit unions in a more detailed analysis.

The appropriate indicators to use in assessing the effects of the Dodd-Frank Act may be different for very small institutions – where most of the credit unions are clustered – than they are for larger institutions,” said the NCUA’s Executive Director Mark Treichel, in a response letter. “Using a set of indicators better-calibrated to the business models may be more helpful in assessing the effects of the Dodd-Frank Act.”

The GAO, noting that the indicators they developed were reasonable, stated, “While we presented similar indicators for banks and credit unions, comparisons between the two types of institutions may not be appropriate and that certain indicators may be more relevant than others for each type of institution.”

The GAO is required to present an annual report on the effects of the Dodd-Frank Act on community banks and credit unions, the impact on financial market stability, and how federal regulators implemented the rules. ##

FHFA Proposal could Reform Sale of Manufactured Homes

December 16th, 2015 Comments off

federal_housing_finance_agency__logoThe Federal Housing Finance Agency (FHFA) released a plan today, Dec. 15, 2015, that gives owners of manufactured home communities (MHCs) the opportunity to access financing by Fannie Mae and Freddie Mac (the GSEs), according to what nationalmortgagenews tells MHProNews. It also would provide incentives for states to convert manufactured homes, not secured by real estate, from chattel loans to real estate loans.

Under the proposal, GSEs would be required to offer financing for small MHCs with 150 or fewer home sites, which would allow them to earn “duty to serve” credits if they make blanket loans secured by the land and the home site in those communities. However, for this to work, the MHC owner must grant the residents a minimum one-year lease, and the right to post for sale signs and be able to sell their home on its current site.

The FHFA proposal would also require MHC owners to offer their communities for sale to the residents if they decide to sell.

In addition, the plan would create an opportunity for a secondary market for manufactured housing loans that are secured by real estate. Currently, lenders for buyers of MH have to carry their own paper. The Consumer Financial Protection Bureau (CFPB) reports, while two-thirds of MH buyers site their homes on land they own, they tend to finance the homes using chattel loans.

An FHFA official said, “A growing number of manufactured housing buyers are opting to place their homes on land they are purchasing or already own. These real estate loans perform better and have lower default rates than chattel loans.

Moreover, the FHFA is encouraging the GSEs to conduct a pilot program financing manufactured home loans not secured by land, and is also seeking comment on how chattel loans could be made safer for purchase by the GSEs.

David Stevens, president and chief executive of the Mortgage Bankers Association (MBA), said, “Manufactured housing is an important entry point for many low income homebuyers. Conducting a pilot program in order to gauge the effectiveness of purchasing these types of loans is the smartest, most efficient way to understand their performance.##

(Image credit: Federal Housing Finance Agency)

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

Multifamily Originations Rise in Third Quarter

November 10th, 2015 Comments off

mortgage app   texaslendingtoday creditThe Mortgage Bankers Association (MBA) tells MHProNews loan originations for multifamily and commercial properties rose in Q3 2015, increasing 12 percent over the third quarter of 2014, and three percent on a quarterly basis.

Retail property loans posted the highest percent rise over last year, +39 percent, while multifamily property originations gained 11 percent.

The MBA projects commercial and multifamily mortgage originations will hit $485 billion in 2016, $225 billion of that in multifamily, the same as anticipated for this year. By the end of 2016, as nationalmortgagenews reports, total commercial and multifamily mortgage debt outstanding will total $2.8 trillion, an 1.8 percent increase year-over-year.

Borrowing and lending in commercial and multifamily real estate markets is strong,” said Jamie Woodwell, MBA’s vice president of commercial real estate research, in a news release. “Interest rates that have stayed lower longer than most anticipated and continued growth in property incomes and values are all pushing mortgage origination levels higher.##

(Image credit: texaslendingtoday)

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

Clayton Reports Income Increase for Q3

November 10th, 2015 Comments off

clayton_homesMaryville, Tennessee-based Clayton Homes has reported a net income increase of 31.1 percent for Q3 2015, to $189 million, according to a regulatory filing, says nationalmortgagenews. A subsidiary of Berkshire Hathaway, revenue rose due to an eight percent increase this year in home unit sales.

Additionally, profit grew because of low interest expense in borrowing, improved manufacturing plus 95 percent of Clayton’s loans were current. The company also suffered lower loss rates on foreclosures in Q3.

As MHProNews knows, Clayton is the largest producer of manufactured homes in North America with some 45 percent marketshare. ##

(Photo credit: Clayton Homes)

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

Tony CA County Seeking more Affordable Housing

October 14th, 2015 Comments off

san_francisco_fromMarin_Co__dan_heller__creditMarin County officials are seeking methods to either build or maintain affordable housing in this very pricey neighborhood of the San Francisco Bay, according to nationalmortgagenews. At a workshop on housing in the Chambers of the Board of Supervisors, there were many proposals from the overflow citizenry, but the county planning staffers drew the most applause when they suggested, instead of building more housing, preserve the existing affordable housing.

As MHProNews understands. they suggested buying market-rate homes for rental to low-income residents, and enacting rent control programs in unincorporated areas that could preserve up to 4,000 multi-family units. While this could have an immediate impact on rents, several supervisors expressed caution about the response from the landlord community.

We do need to keep rents stable, “but the way in which that is done requires careful consideration,” Supervisor Steve Kinsey said. Board President Katie Rice, noting rent control is no silver bullet solution to the problem of affordable housing, says the idea deserves a closer look.

Brian Crawford, head of the Community Development Agency, and planner Alisa Stevenson, in addition to buying market rate homes for conversion to affordable housing, they suggested reviewing down payment assistance for workers who live near a Marin workplace. They also suggested a subsidy or other incentives to landlords who rent to low-income tenants. ##

(Photo credit: Dan Heller–view of San Francisco from Marin County)

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

Secondary Market for Manufactured Home Loans Coming from FHFA

October 2nd, 2015 Comments off

federal_housing_finance_agency__logoAccording to nationalmortgagenews, the Federal Housing Finance Market (FHFA) will issue a final rule within the next 12 months requiring Fannie Mae and Freddie Mac to better serve the manufactured housing market and rural markets, and increase the preservation of affordable housing under the “duty-to-serve” mandate.

The rule will therefore provide a secondary market for manufactured housing loans, lower financing costs and providing better protection for consumers, long sought goals of the the manufactured housing industry.

The agency also intends to update its the GSEs credit scoring models. FHFA will “continue to assess the feasibility of leveraging alternative credit scores for underwriting, disclosure and pricing purposes, including operational and system implications.

FICO has made significant changes since the FICO 4 credit scoring model was introduced in 2004, as MHProNews has learned. Different groups have suggested more current credit scoring models should be introduced, but FHFA Director Mel Watt said updating the FICO of developing an alternative is a complicated process, and there was no immediate indication that will be done within this fiscal year, which began Oct. 1.

The agency also intends to work on different remedies for dealing with lender disputes with Fannie and Freddie. ##

(Image credit: Federal Housing Finance Agency)

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

Mortgage Applications Rise

September 24th, 2015 Comments off

mortgage app  housingwire creditAccording to the Mortgage Bankers Association (MBA), mortgage applications rose 14 percent on a seasonally adjusted basis for the week ending Sept. 18. MBA Chief Economist Mike Fratantoni noted the rate declined towards the end of the week which “likely drove applications from both prospective homebuyers and borrowers looking to refinance.” He suggested the increase was due to a Federal Open Market Committee (FOMC) meeting.

As nationalmortgagenews tells MHProNews, the MBA’s Market Composite Index (MCI), which measures mortgage loan application volume, rose 26% on an unadjusted basis for the same week. Refinance application volume rose sharply 58.4% from the previous week, and applications for purchase increased 9% on a seasonally adjusted basis, and 20% on an unadjusted basis. They were 27% higher than the comparable week a year ago.

The average contract interest rate for a 30-year fixed-rate mortgage with a conforming loan balance ($417,000 or less) remained steady at 4.09%. ##

(Image credit: housingwire)

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

Home Prices Rise, Yearly and Monthly

September 3rd, 2015 Comments off

housing_recovery__globest.com__creditAccording to the CoreLogic Home Price Index, home prices increased 6.9 percent in July over a year ago, and rose 1.7 percent over June, including distressed sales.

Home prices rose 6.7 percent year-over-year if distressed sales are excluded, and were up 1.5 percent month-over-month, as reported by nationalmortgagenews to MHProNews.

Massachusetts and Mississippi registered a decline in home prices on a yearly basis, including distressed sales, while West Virginia and Vermont saw home prices fall on a monthly basis, also including distressed sales.

Low mortgage rates and stronger consumer confidence are supporting a resurgence in home sales of late,” Anand Nallathambi, CoreLogic’s CEO, said in a news release. ##

(Image credit: globest)

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

Oil Price Drop will Cost Jobs, Reduce Home Values

August 28th, 2015 Comments off

housing slides  cnnmoney  creditWhile home values dropped drastically for most of the nation following the housing bubble, the oil-producing states posted housing gains. With crude oil trading at half the price of a year ago, according to nationalmortgagenews, New Mexico, North Dakota, Oklahoma, Wyoming and Alaska may see home prices fall six to 20 percent over the next five years. As MHProNews posted many times in the last several years, modular workforce housing and manufactured housing experienced a strong uptick in oil-producing areas of the country.

Fannie Mae Economist Eric Brescia, in a report, said if lower energy prices reduce demand for shale oil, home values will be flat in Texas in five years.

This is going to hurt, but we won’t see a repeat of the 1980s when Texas was awash in vacant houses,” said Mark Zandi, chief economist for Moody’s Analytics Inc. in West Chester, Pa. “Going into this, most of the oil states were vastly undersupplied with housing. That’s going to cushion the blow.

The government estimates lower oil prices have kept $700 a year in each American household. However, it will cost the energy sector about 150,000 jobs from January 2015 to March 2016, and another 150,000 workers in related industries such as pipe manufacturing, says Zandi. ##

(Image credit: cnnmoney)

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