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Posts Tagged ‘underwater borrowers’

425,000 more Underwater Borrowers now Floating again

July 12th, 2016 Comments off

underwater_mortgage__news365_today_credit postedDailyBsuinessNewsMHProNewsWhile the negative equity rate is five times higher than it was in 2004, during the first quarter of this year 425,000 borrowers who were once underwater regained equity, according to what Black Knight Financial Services tells nationalmortgagenews, leaving just 2.8 million borrowers in negative equity.

Black Knight’s Home Price Index has documented 48 consecutive months of annual home price appreciation, and that 38 million borrowers have at least 20 percent equity in their homes, with each borrower averaging $116,000 in tappable equity. MHProNews has learned that overall tappable equity grew $260 billion in Q1 2016.

It seems borrowers are still being prudent when it comes to drawing upon that equity, though,” said Ben Graboske, data and analytics executive vice president at Black Knight, in a news release Monday. “Just $20 billion in equity was tapped via cash-out refinances in 1Q 2016 — roughly one-half of 1% of total available equity. Even so, cash-outs still accounted for some 42% of all refinance activity in 1Q 2016.”

While fewer than 1% of all active mortgages were made to borrowers severely delinquent on student loans, Black Knight reported that borrowers severely delinquent on student loan debt were five times more likely to be delinquent on their mortgages than those who are current on student loan debt. ##

(Image credit: news365today–home beginning to float after being underwater)

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

More Homes Lifted out of Negative Equity in Q3

December 18th, 2013 Comments off

During Q3 2013 an additional 791,000 U. S. homes returned to positive equity as home values continue to rise, bringing the number of mortgaged residential properties with equity to 42.6 million. The number of homes remaining in negative equity fell from 7.2 million at the end of the second quarter to 6.4 million at the end of the third quarter 2013, accounting for
13 percent of all homes mortgaged. “Rising home prices continued to help homeowners regain their lost equity in the third quarter of 2013,” said Mark Fleming, chief economist for CoreLogic. “Fewer than 7 million homeowners are underwater, with a total mortgage debt of $1.6 trillion. Negative equity will decline even further in the coming quarters as the housing market continues to improve.” As worldpropertychannel.com informs MHProNews, ten million of the homes in the positive equity column have under 20 percent equity and may have a difficult time finding new financing.

(Image credit: globest.com)

Slowing Home Appreciation Means Positive Equity Distant for Underwater Borrowers

November 23rd, 2013 Comments off

According to the analytic firm Zillow, 10.8 million homeowners still owe more than their house is worth, a drop of over 4.9 million from the high point of Q1 2012, which represents a 21 percent decline when the negative equity peak was 31.4 percent of all homeowners. In Q2 2013 the negative equity rate hit 23.8 percent, representing the largest quarter-over-quarter drop since Zillow began following the trail of negative equity in Q2 2011, according to nationalmortgagenews. Stan Humphries, the firm’s chief economist, says, “Rising home prices and a greater willingness among lenders to engage in short sales have both contributed substantially to the significant decline in negative equity this quarter (Q3 2013). We should feel good that we’re moving in the right direction and at a fast clip.” If home price values fall in 2014 as predicted by Zillow and others, the pace of negative equity improvement will slow, falling to only 18.8 percent. As MHProNews has learned, home values that increase by Zillow’s prediction of 3.8 percent next year would require a homeowner underwater by 20 percent five years to reach positive equity. Humphries says, “Negative equity must be considered part of the new normal in the housing market.”

(Image credit: news365today)

FHA’s Carol Galante is Galloping

October 12th, 2011 Comments off

OriginationNews reports that two years after leaving affordable housing developer Bridge Housing Corporation to run the Federal Housing Administration’s (FHA) multi-family program, Carol Galante is operating the entire agency. After David Stevens left the FHA to head the Mortgage Banker’s Association (MBA), Galante has become the acting commissioner. She now oversees FHA’s single-family program, is working on a program to sell government-backed foreclosed properties in bulk to investors to rent out, and a program to allow underwater borrowers to refinance at lower mortgage rates. “There are a lot of folks underwater who are still making their payments,” she adds. Galante is overhauling the reverse mortgage program to adapt to seniors’ needs of paying increasing property taxes and homeowners insurance. One of her goals is to make credit more accessible for new homeowners. “On the single-family side, FHA needs to be an important source of financing for underserved communities, and low-and moderate-income borrowers,” she says.

(Graphic credit: FHA)