Lawmakers Debate ‘Too Big to Fail’ and Criteria for ‘Systemically Important’ Tag

first_img Servicers Navigate the Post-Pandemic World 2 days ago Lawmakers Debate ‘Too Big to Fail’ and Criteria for ‘Systemically Important’ Tag July 9, 2015 1,507 Views Related Articles Sign up for DS News Daily in Daily Dose, Featured, Government, News  Print This Post Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Brian Honea Congressman Randy Neugebauer Dodd-Frank Financial Institutions and Consumer Credit Subcommittee House Financial Services Committee SIFIs Systemically Important Financial Institutions Too Big to Fail 2015-07-09 Brian Honea Subscribe Servicers Navigate the Post-Pandemic World 2 days ago The debate over whether  “too big to fail” has ended and the criteria for designating a bank holding company as “systemically important” under Dodd-Frank has continued this week as lawmakers convened to discuss the controversial law and its effect on the American financial system.One notable of Wednesday’s House Financial Services Financial Institutions and Consumer Credit Subcommittee hearing was that many commentators, including members of Congress and banking regulators, have criticized the way bank holding companies are arbitrarily designated as “systemically important financial institutions” (SIFIs) under Dodd Frank. Under the law, the Federal Reserve is required to apply enhanced prudential standards to bank holding companies with $50 billion or more in total consolidated assets – thus creating a “de facto” SIFI designation for these institutions.”Neither the statutory text nor its legislative history offers a clear explanation for why Congress chose a bright-line $50 billion asset threshold for application of enhanced standards,” said Debevoise & Plimpton Partner Satish Kini, one of the witnesses at the hearing. “To the best of my knowledge, no economic studies or other data were cited by Congress in establishing this threshold.”Bank holding companies (companies that own or control one or more U.S. banks or have a controlling interest in one or more U.S. banks) that are designated as SIFIs under Dodd-Frank are therefore “too big to fail” and would receive a taxpayer-funded bailout if their economic stability were to be threatened. Some members of the Subcommittee contended at the hearing that Dodd-Frank is codifying “too big to fail” by continuing to designate firms (both banks and non-banks) as SIFIs, therefore guaranteeing those firms a federal backstop should a financial crisis occur.”As policy makers, we must always strive to be precise when improving legislative frameworks as to minimize unintended consequences,” said Congressman Randy Neugebauer (R-Texas), Chairman of the Financial Institutions and Consumer Credit Subcommittee. “I hope this hearing allows members to begin to consider different ways of measuring systemic importance and the regulatory consequences of being designated a SIFI.”One of those unintended consequences is the cost of maintaining “additional liquidity buffers” for banks to insure themselves against economic downturns, according to Zions Bancorporation Chairman and CEO Harris Simmons, one of the witnesses at the hearing.”While it is important for every depository institution to maintain appropriate levels of reserves to deal with normal fluctuations in cash flows, maintaining additional liquidity buffers as an insurance policy against times of extreme stress will almost certainly be a costly exercise for banks and for the economy at large,” Simmons said. “Every dollar invested in high quality liquid assets is a dollar that cannot be loaned out and put to more productive use. The impact will likely be most particularly acute for smaller and middle-market businesses that do not have ready access to the capital markets, and for whom bank credit is their financial lifeblood.”The same day as the Subcommittee hearing on the designation of banks as SIFIs, U.S. Department of Treasury Secretary Jacob Lew said in an address at the Brookings Institution that SIFIs are held to higher standards for taxpayer protection – that that the law ended “too big to fail.””To keep taxpayers from ever having to step in to save a financial firm again, Wall Street Reform ended ‘too big to fail’ as a matter of law,” Lew told the audience. “In addition, regulators now have modern, commonsense tools to protect taxpayers.  For example, the FSOC can designate large institutions as “systematically important” and hold them to higher standards.  Also, in the event of a crisis or a bankruptcy, regulators can seize large financial institutions and wind them down in an orderly way.”American Enterprise Institute Resident Scholar Paul Kupiec, one of the witnesses at the hearing, said the basic premise behind the “too big to fail” theory was flawed.”Many argue that the TBTF [too big to fail] problem arises because SIFI financial institutions are so large and important that they are incapable of being reorganized in a judicial bankruptcy process without causing widespread financial market distress and disrupting economic growth,” Kupiec said. “The financial crisis that reached a crescendo after the September 2008 Lehman Brothers bankruptcy is often cited as evidence that supports the TBTF hypothesis, but such ‘proof’ ignores the possibility that the Lehman Brothers bankruptcy was caused by an advanced financial crisis already in progress―and the failure was not the cause of the financial crisis that peaked in the fall of 2008.” Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Congressman Randy Neugebauer Dodd-Frank Financial Institutions and Consumer Credit Subcommittee House Financial Services Committee SIFIs Systemically Important Financial Institutions Too Big to Fail Home / Daily Dose / Lawmakers Debate ‘Too Big to Fail’ and Criteria for ‘Systemically Important’ Tag Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Previous: Distressed Sales Fall to Eight-Year Low Next: Auction.com Welcomes New VP of Industry Relations last_img read more

GSEs’ Investment Portfolios Are Steadily Winding Down

first_img January 25, 2016 3,914 Views in Daily Dose, Featured, News, Secondary Market Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Led by Housing, Economy Suffers Slight Setback to End 2015 Next: DS News Webcast: Tuesday 1/26/2016 Fannie Mae Freddie Mae Mortgage Investment Portfolios 2016-01-25 Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Tagged with: Fannie Mae Freddie Mae Mortgage Investment Portfolios The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img GSEs’ Investment Portfolios Are Steadily Winding Down Subscribe Servicers Navigate the Post-Pandemic World 2 days ago The mortgage-related investment portfolios for both Fannie Mae and Freddie Mac continue to contract and were both well below their 2015 portfolio cap, according to Urban Institute’s Housing Finance at a Glance: Monthly Chartbook for January 2016 released on Monday.Fannie Mae’s mortgage-related investment portfolio totaled $353.5 billion as of the end of November while Freddie Mac’s portfolio was valued at $344.9 billion. The values of portfolios for both Fannie Mae and Freddie Mae fell well below the cap for 2015 of $399.18 billion and were higher than the 2016 cap, which is $339.3 billion, according to the Urban Institute.“Both GSEs continue to reduce their portfolio size; relative to November 2014, Fannie contracted by 16.6 percent, and Freddie Mac by 14.2 percent,” the report stated. “They are shrinking their less liquid assets (mortgage loans and non-agency MBS) at a similar pace—or even more rapidly—than they are shrinking their entire portfolios.”In November, Fannie Mae’s portfolio contracted at its highest rate for any one month of 2015, shrinking by 30.2 percent (about $11 billion) down to its most recently reported value of $353.5 billion. November marked the eighth straight month of contraction for Fannie Mae’s portfolio. The portfolio has expanded in only three months out of the last 64 since June 2010 (March 2015, January 2015, and December 2012). At the beginning of that stretch in June 2010, the portfolio’s value was $818 billion. At the start of 2015, the portfolio’s value was $414.8 billion.Freddie Mae’s mortgage-related investment portfolio contracted in 10 of the first 11 months in 2015, including at rates of 35.8 percent in November and 37.8 percent in October. The only month in 2015 for which the portfolio expanded was March (at a rate of 4.2 percent). Like Fannie Mae, November 2015 marked the eighth straight month of decline for Freddie Mac’s mortgage-related investment portfolio down to its current value of $344.9 billion. The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / GSEs’ Investment Portfolios Are Steadily Winding Down Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland.  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img read more

Is the Market Moving Deeper into Buying Territory?

first_imgSubscribe September 14, 2016 925 Views Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago The latest national index produced by Florida Atlantic University and Florida International University faculty indicates the United States housing market as a whole is moving marginally deeper into buy territory. According to the recent report from the university, this trend suggests that, on average, the majority of housing markets around the country are in good shape and remain a sound investment.The report states that based on numbers from the end of the second quarter, the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index comes on the heels of the latest S&P/Case-Shiller Home Price Index, which found home prices climbed nationally 5.1 percent since June 2015. The report also states that both indexes incorporate property appreciation from housing markets around the country, but unlike Case-Shiller, the BH&J Index adds additional rental, maintenance, and alternative investment data streams, among others, to indicate when and why housing markets might be changing direction.”Housing prices, in general, continue to slow and when considered in light of the recent trends in the Buy vs. Rent Index signal that ownership remains an excellent investment for the majority of Americans,” said Ken Johnson, Ph.D., a real estate economist who is one of the index’s authors and an associate dean of graduate programs and professor in FAU’s College of Business.The report states that they believe the U.S. housing market has moved marginally more in favor of homeownership over renting a comparable property and investing monthly rent savings in a portfolio of stocks and bonds. The report also states that overall, 15 of the 23 metropolitan markets investigated are trending more in favor of ownership since last quarter.Additionally, the report shows that cities such as Honolulu, Kansas City, Los Angeles, Miami, Pittsburgh, Portland, San Francisco and Seattle are considered to be minimally in rent territory and show signs of slowing. It is also noted that the U.S. as a whole and all but three of the remaining metro areas remain in buy territory, favoring ownership as a way to create more wealth, on average.”Many of the hardest hit metropolitan areas during the real estate crash are showing signs of resilience as the cost of ownership relative to the cost of renting remains more in balance,” said Eli Beracha, Ph.D., co-author of the index and assistant professor in FIU’s T&S Hollo School of Real Estate. “There are very few signs to indicate a market crash in these cities.” Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Is the Market Moving Deeper into Buying Territory? Home / Daily Dose / Is the Market Moving Deeper into Buying Territory?center_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Homeownership Housing Market The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Demand Propels Home Prices Upward 2 days ago Previous: New Tool Launched for REO Market Next: Staying Current with the Changing REO Space Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Homeownership Housing Market 2016-09-14 Kendall Baer in Daily Dose, Featured, News About Author: Kendall Baerlast_img read more

Three Ways to Ensure Effective Repair Management

first_imgHome / Daily Dose / Three Ways to Ensure Effective Repair Management Servicers Navigate the Post-Pandemic World 2 days ago Three Ways to Ensure Effective Repair Management in Daily Dose, Featured, Headlines, Market Studies, News  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Green River Capital Home Repair 2017-09-29 Andrew Oliverson The Best Markets For Residential Property Investors 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: Delgado Warns of Potential Concerns in Housing Market Next: House of Representatives Makes Move to Privatize Flood Insurance Andrew Oliverson is currently the SVP, REO Sales at Green River Capital, a Radian company. He joined Green River Capital in 2005 after working several years in collections, loss mitigation, commercial asset management, and mortgage origination. He received a bachelor’s degree in economics at the University of Utah and currently holds an active Utah broker’s license. September 29, 2017 2,574 Views center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles After the hottest July on record for the Salt Lake City area, during which my air conditioning unit worked overtime, I noticed a performance slump along with wet carpet in my basement. So, I turned off the AC and called a repairman. He showed up Monday afternoon and simply removed an internal panel, cleaned the drip tray that captures the condensation from the evaporator coil, and unclogged the ¾” drain pipe. I paid a $120 service fee and realized: Had I taken a few extra minutes, I could have saved myself $120, multiple phone calls, and two days of no air conditioning.Of course, effectively managing repairs for numerous homes across different cities, counties, or even states is much more challenging than doing so for one’s own home. That’s why many lenders and investors hire a vendor partner to develop and execute a successful repair program for their REO or SFR assets. So, what should you look for in a repair management vendor to ensure your repair dollars are maximized?Understand the Scope of the RepairHad I really understood what it took to repair my AC unit, I could have done it myself. Similarly, many lenders and investors want to fully understand the scope of repairs, including all the deficiencies of the asset compared to the comparable properties that are available in the neighborhood. Having dedicated, trained vendor partners in the field that are in tune with the local market is essential. Without their input, including photos, descriptions, and their commitment to the best strategy for the asset, you won’t be nearly as effective as you could.Communicate Regularly with Your Vendor PartnersBeing a thousand miles from an active repair represents an issue in and of itself. Good, effective communication is the key to providing assurance that work is progressing as expected. Regular phone calls that ask the right questions and provide immediate direction are essential. In some cases, traveling to the asset, or scheduling a third-party to inspect the repair process on your behalf, may be necessary.Perform a Final InspectionDespite best efforts, issues can arise that prevent a vendor partner from completing a project on time, such as weather delays or back ordered materials. Having realistic expectations set at the beginning of the project and updates as the project progresses prevents needless hand-wringing as the deadline approaches. Final inspection and signoff prevents unsatisfactory work from being accepted.Everyone wants to get their money’s worth for any service they purchase. At Green River Capital, we adhere to general best practices that can be customized with our clients’ budgets and preferred vendors. This includes providing an accurate scope of all needed repairs and where to most effectively spend the funds. After repairs are authorized, we then oversee repairs through to completion, while working to stay within budget and on a reasonable timeline. Tagged with: Green River Capital Home Repair The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Andrew Oliverson Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Subscribelast_img read more

Assurant Announces New Leadership

first_img Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago in Featured, Headlines The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Tagged with: Assurant HOUSING mortgage Movers and Shakers The Best Markets For Residential Property Investors 2 days ago Related Articles About Author: Nicole Casperson Home / Featured / Assurant Announces New Leadership The Week Ahead: Nearing the Forbearance Exit 2 days ago Assurant Announces New Leadershipcenter_img Assurant HOUSING mortgage Movers and Shakers 2017-10-20 Nicole Casperson Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected] Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Assurant, Inc. announced on this week that Marc Connelly has joined Assurant Mortgage Solutions as National Sales Director—with the primary focus on growing the title and origination valuations product lines for Assurant.“Marc’s deep background in sales and business development is matched by knowledge and insights into our industry,” said Dan Hoppes, SVP, Mortgage Solutions at Assurant. “We were impressed by Marc’s breadth of experience in real estate including the title and settlement process, and are confident that his expertise will help us grow our mortgage solutions business.”In response, Connelly said that he is impressed with Assurant’s commitment to clients that is visible in the innovative solutions the company produces. “I look forward to being a part of delivering the new solutions that enable our clients’ success,” commented Connelly.Connelly’s previous roles include EVP of Business Development at McDonnell and Associates, P.A., a multi-state general practice law firm with a focus on real estate law, title development and settlement services. He also served as a managing partner at Epic Real Estate Solutions, where he was responsible for strategic and consultative sales as well as implementing a revolutionary new technology in response to regulatory changes relevant to lenders, realtors, title agents and consumers. In addition, Connelly previously worked in business development at TitleClose and Prommis Solutions, LLC. October 20, 2017 1,316 Views Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Previous: The Top 3 Single Family Home Markets to Follow Next: Fitch Insights: A Discussion on the Future of RMBS Sign up for DS News Daily Subscribelast_img read more

The Week Ahead: Loan Performance on the Radar

first_img The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily The Week Ahead: Loan Performance on the Radar Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: CoreLogic default Foreclosure Week Ahead Home / Daily Dose / The Week Ahead: Loan Performance on the Radar Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago CoreLogic default Foreclosure Week Ahead 2019-06-07 Seth Welborn Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days agocenter_img  Print This Post Related Articles On Tuesday, CoreLogic will release its latest Loan Performance Insight Report for March 2019, which covers delinquency, default, and foreclosure data across the country.February’s report stated that the nation’s overall delinquency rate has fallen on a year-over-year basis for the past 14-consecutive months. Fewer delinquencies attribute to the strength of loan vintages in the years since the residential lending market has recovered following the housing crisis. Additionally, 11 metropolitan areas experienced small annual gains in their serious delinquency rates—mortgages that are more than 90 days delinquent. The largest gains were in four Southeast metros affected by natural disasters in 2018.Panama City, Florida, had the nation’s highest serious delinquency rate of 2%. Every state, for the exception of Minnesota, saw a decrease in serious delinquency rates. Minnesota’s rate was unchanged from 2018.Eleven Core Base Statistical Areas/Metros saw its serious delinquency rate increase, most of which were located on the East Coast.”We are on track to test generational lows as delinquency rates hit their lowest point in almost two decades. Given the economic outlook, we are likely to see more declines over the balance of this year. Reflective of the drop in delinquency rates, no state experienced a year-over-year increase in its foreclosure inventory rate so far in 2019,” said Frank Martell, Corelogic’s President and CEO.Unchanged were the share of mortgages that transitioned from current to 30-days past due, remaining at 1%. This stat peaked at 2% in November 2008 and was 1.2% in January 2007, just before the financial collapse.Individual states are moving to improve the amount of homes being foreclosed. New Jersey Gov. Phil Murphy signed several new laws into effect earlier this month aiming to curb New Jersey’s foreclosure crisis.“The foreclosure crisis has hurt our economy and jeopardized economic security of too many New Jersey families,” Murphy said. “Our communities cannot succeed while vacant or foreclosed homes sit empty or while families live in limbo. I am proud to sign these bills into law [Monday] and get New Jersey closer to ending the foreclosure crisis.”Here’s what else is happening in The Week Ahead:Banking, Housing, and Urban Affairs Hearing (June 11)Quicken Loans Monthly Home Price Perception Index and Home Value Index for May (June 11)UMich Consumer Sentiment Index (June 14) About Author: Seth Welborn June 7, 2019 1,375 Views Share Save Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Checking in on Interest Rates Next: Black Knight Announces U.S. Bank Implementation Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. last_img read more

Regulators and Lawmakers Accelerate Coronavirus Response

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Seth Welborn in Daily Dose, Featured, Government, News Tagged with: Coronavirus  Print This Post Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 20, 2020 1,183 Views Coronavirus 2020-03-20 Seth Welborn The Best Markets For Residential Property Investors 2 days ago Related Articles Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Regulators and Lawmakers Accelerate Coronavirus Response As the coronavirus pandemic continues to affect homeowners nationwide, regulators are making changes to keep Americans in their homes. This week, Fannie Mae and Freddie Mac announced numerous actions to protect those affected, either directly or indirectly, by the novel coronavirus.Included in the GSEs’ announcements is a reminder that homeowners impacted by this national emergency are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months.“We are doing all we can to help those adversely impacted by the coronavirus, including by immediately suspending foreclosure sales and evictions during this challenging time,” said Donna Corley, EVP and Head of Freddie Mac’s Single-Family business. “These eviction and foreclosure stoppages are just one part of the comprehensive assistance we’re providing borrowers to help protect our communities. We are also expanding relief available through our well-known forbearance programs, allowing us to reach the majority of affected borrowers as expeditiously as possible.”FHFA Director Mark Calabria discussed with CNBC how forbearance will impact the credit scores of borrowers.“If you’re in a forbearance plan and you’re meeting the terms of that plan, it will not be reported to your credit bureau, there will not be a ding on your credit,” Calabria said. “If you don’t reach out to your lender and get a plan and don’t pay, you will get hit.”Alongside the GSEs’ announcements, the House Financial Services Committee released plans for a legislative package to provide a comprehensive fiscal stimulus and public policy in response to the coronavirus pandemic.“As the COVID-19 pandemic continues to spread, we have seen the devastating effects on workers, consumers, investors, markets, and the economy,” said Congresswoman Maxine Waters, Chairwoman of the House Committee on Financial Services. “Low income communities were already struggling before this crisis began and will likely be hit particularly hard by the coming recession. This is an urgent public health crisis that has quickly harmed our entire economy, and it demands swift and bold action. The Financial Services Committee will play a central role in that response.”The committee’s response includes at least $2,000 per month for all adults and $1,000 for each child, and a suspension on all consumer and small business credit payments and negative credit reporting, including mortgages.Shortly after the Financial Services Committee announced their plan, Committee Member Ben McAdams announced that he has been diagnosed with COVID-19.“I and my colleagues are all wishing Representative McAdams a speedy recovery and good health,” Chairwoman Waters said. “As a new Member of the Financial Services Committee this Congress, Representative McAdams is a tireless, hardworking advocate for Utahns, and it is no surprise that even now he is working from home to help his constituents.” Previous: Single-Family Homes are Shrinking Next: NMSA Proposes COVID-19 Response to Ensure Liquidity, Stability Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Home / Daily Dose / Regulators and Lawmakers Accelerate Coronavirus Response Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

Housing Reform: Step by Step

first_img Servicers Navigate the Post-Pandemic World 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Previous: DS5: Discussing the Fed’s Plan for Mortgage-Backed Securities Next: Wells Fargo Names New Head of Operations  Print This Post GSE Reform has been a hot-button issue since the GSEs were put into conservatorship over a decade ago, and rightfully so. The housing and housing finance markets continue to evolve. While demand for homeownership remains high, many borrowers are coming to the market with increased amounts of student loan debt and a job market that is increasingly being shaped by the emerging gig economy. Much has been written about the lack of available housing inventory, especially at a price point geared toward first-time homebuyers. The housing market has had a good, extended run since we turned the corner from the Great Recession, but many economists are sounding warning bells about potential bubbles, and now the latest news on the global economy is less than stellar.Even if you believe that there are no impending challenges to the housing market, it does not follow that reform isn’t needed. It is indeed very much needed. Simply consider the changes we’ve seen to the job market, to student lending, and to the demographics of potential homebuyers, just to name a few. However, despite the constantly evolving market, it does not appear that legislative reform is imminent. That does not mean that reform is not happening—it is happening on an almost daily basis via regulatory actions.Regulators are stepping into the void and taking actions that could have immediate and material impact on the housing market. In this environment, it is important that legislators and policy makers watch closely to make sure that regulatory changes further the important objectives of ensuring a stable housing market with access to affordable, sustainable mortgage lending for home-ready borrowers, protecting taxpayers, promoting stability in housing finance, and fostering transparency. If each of these four principles is kept at the center of the discussion, we will be able to move forward as an industry in a much more stable and positive way, benefiting all of our customers, whether they are homeowners, homebuyers, or taxpayers.I. Protect Taxpayers—A priority of any housing reform plan should be to promote private capital taking first loss risk ahead of any taxpayer exposure to mortgage defaults. Ensuring that private capital takes the first risk of loss at the time a loan is made must be a feature of any housing reform proposal. Regulators must be careful of proposals that downplay the role of private capital in the name of innovation, especially when we are in the midst of the longest economic expansion in the last 70 years.II. Promote Stability—There is broad agreement on the importance of maintaining a stable market for the 30-year fixed rate mortgage, which is encouraging. While the ultimate goal would be legislation that provides an explicit government guarantee covering credit losses, much can be done today. In particular, regulators should be working to set, and supervise, mortgage lending and servicing standards that promote stability. Examples of regulatory oversight include review of the types of products being offered and syncing up standards so that one segment of the market does not have an incentive to start a “race to the bottom” on lending. As the Federal Housing Finance Agency continues to work on a revised Enterprise Capital Framework proposal, the Agency should be mindful of the impact the new Framework will have, not only on the GSEs, but on the market as a whole. Either too much or too little capital could be very disruptive.III. Ensure Access—Access to mortgage finance for creditworthy borrowers and participation by lenders of all sizes is significant when you are talking about taking next steps and how to best move forward in the future. Loan-level credit enhancements can facilitate low down-payment lending to creditworthy borrowers, especially when placed on mortgage loans before they are guaranteed by the federal government. To ensure lenders of all sizes and types can participate in the market, all lenders should have access to the same fees and origination costs. Also, the GSEs have made great strides in technology while in conservatorship. As housing reform advances, we need to make sure that the entire market benefits from the advances that the GSEs have made, not just particular pockets of the market.IV. Foster Transparency—A key to a stable and robust future housing market will be transparency and clarity around underwriting, capital standards, and loan performance. Real transparency will help ensure that all borrowers are offered the best product at the best price. Similarly, transparency will enable market participants—lenders, servicers, mortgage insurance providers, and investors—to ensure that they are being held to standards that are consistently applied across industries, to avoid picking winners and losers. The GSEs have decades and decades of data that would benefit the overall market, and as technology advances, the amount of data available will only increase. Similarly, greater insight into the engines that drive much of today’s underwriting—Loan Prospector and Desktop Underwriter—would enable the broader market to not only understand credit policy, but to assess it as it evolves. Eventually, this transparency could encourage other mortgage guarantors to enter the system.THEN AND LATERAt this point, you may be asking yourself, “So, what might housing reform look like in a world where Congress is unlikely to act in the near term?” That is a thoughtful and honest question, and to be frank, regulators have tremendous power to shape, or reshape, the housing market. That kind of regulatory reform is happening today. Among the initiatives currently under consideration at the Federal Housing Finance Agency, the Consumer Financial Protection Bureau, and the Securities and Exchange Commission alone are the impending Enterprise Capital Framework coming from the Federal Housing Finance Agency, the Qualified Mortgage Notice of Proposed Rulemaking (expected to be published by May), and reconsideration of disclosure requirements under Regulation AB at the Securities and Exchange Commission.Each of these would have a major impact on cost and availability of mortgage lending. As regulators continue moving forward on significant structural changes, we as professionals and leaders in the housing market should keep a close watch to see how these initiatives stack up against the four principles outlined above and be vocal in our advocacy. This kind of oversight is especially important because of the complicated and interconnected nature of the housing finance market. We do not want to be in a position where we take our eyes off the ball, lose our place, and then wonder where things went awry.Housing markets are driven by an almost unlimited number of factors: global and domestic monetary policy, global climate trends, population shifts, changes in job markets, technological innovations and advancements, the cost and availability of raw materials, the attractiveness of competing asset classes for investors, consumer confidence levels, and the list goes on and on. In a perfect world, Congress would tackle housing reform in a way that considers the complexity and interconnections of the housing market, so the possibility of adverse unintended outcomes would be mitigated.Another question you may be wondering about is, “How should we think about reform at a time when it is most likely to happen via regulatory action?” First and foremost, regulatory actions should be measured against the four principles of housing reform. Let’s take a look at bank risk-based capital as a purely hypothetical example. Imagine if bank regulators significantly reduced the amount of capital their institutions needed to hold against mortgaged risk. A move like that would have obvious implications for regulated banks. Just as important, it would also have implications for the GSEs, the Federal Housing Administration, nonbank mortgage lenders, mortgage insurers, homebuilders, and virtually every participant in the housing finance system.These implications are not lost on regulators. However, with the possible exception of the Federal Reserve, no regulator is charged with a mandate to assess regulatory changes against any set of principles, let alone the four principles of housing reform outlined above.To overcome this shortcoming while we wait for Congress to take up legislative reform, why shouldn’t we consider a simple framework that could be used by the key housing regulators (United States Department of Housing and Urban Development, Federal Housing Finance Agency, Consumer Financial Protection Bureau, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Federal Reserve) to help ensure that decisions are being made in a consistent and coordinated way when it comes to housing related matters? If executed in the appropriate manner, a principles-based framework could simplify and streamline regulatory activity. It also would create an informal but effective way to drive coordinated policy and avoid creating opportunities for regulatory arbitrage. Ultimately, this framework could serve as a starting point for developing a legislative reform package that would include a means to formalize inter-regulator cooperation and collaboration.At the end of the day, the central point of the housing reform discussion is all about ensuring that the market and economy remain stable, consumers are protected, transparency is maintained, and access to affordable homeownership for all Americans is not compromised or diminished. If we, as businesses, regulators, legislators, policy makers, and advocates, can keep this common vision at the forefront of each reform conversation and step, we can make great strides in advancing housing reform—today and going forward. Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Government, News, Print Features Share Save Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Demand Propels Home Prices Upward 2 days agocenter_img Rohit Gupta is President and CEO of Genworth’s U.S. Mortgage Insurance Business, where he works with lenders, regulators and policy leaders to advocate for the value of mortgage insurance to a sustainable housing finance system. Along with his advocacy, Gupta served as Chairman and remains a board member of the U.S. Mortgage Insurers trade association. He also serves on the Boards of the Mortgage Bankers Association Residential Board of Governors and Housing Policy Executive Council. Additionally, Gupta is a catalyst for community change and serves as a Board member of the Genworth Foundation Board, American Cancer Society Triangle Leadership Council and Pratham USA. The statements provided are the opinions of Rohit Gupta and do not reflect the views of Genworth or its management. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Housing Reform: Step by Step The Week Ahead: Nearing the Forbearance Exit 2 days ago April 28, 2020 2,097 Views Tagged with: GSE Reform About Author: Rohit Gupta GSE Reform 2020-04-28 David Wharton Home / Daily Dose / Housing Reform: Step by Step The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

Wells Fargo Names New Head of Operations

first_img Tagged with: Wells Fargo The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago About Author: Seth Welborn Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Wells Fargo 2020-04-28 Seth Welborn Share Save Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Wells Fargo Names New Head of Operations Previous: Housing Reform: Step by Step Next: Log In Virtually For the LL100 Servicer Summit Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days agocenter_img Related Articles Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Wells Fargo Names New Head of Operations April 28, 2020 1,306 Views Sign up for DS News Daily Wells Fargo & Company has announced that Lester Owens will join the company in the newly created role of Head of Operations, responsible for building a more unified, more integrated approach to Wells Fargo’s business operations functions. Owens, who joins Wells Fargo in late July 2020, will report to Chief Operating Officer Scott Powell and will serve on the company’s Operating Committee.“Lester is a highly regarded operations executive with more than 30 years of experience in the financial services industry and a passion for excellence, customer experience, efficiency, and transformation,” said Powell. “While everyone at Wells Fargo shares the responsibility for operational excellence, Lester’s team will enable us to deliver the best experience possible for our customers while driving consistent execution across our business operations functions, including contact center operations, client servicing support, money movements within our businesses, lending operations, and other functions. We will all benefit from having Lester’s deep experience and talent in this critical role.”Owens joins Wells Fargo from Bank of New York Mellon, where he was Global Head of Operations, responsible for a team of 20,000 employees supporting every stage of the client investment lifecycle, including account creation, trading, clearing and settlement, and asset servicing. Prior to joining BNY Mellon, he spent 10 years at JP Morgan Chase, where he was responsible for Global Wholesale Banking Operations, among other roles. Lester previously led significant operations functions for Deutsche Bank, Citibank, and Bankers Trust. Owens is a graduate of Long Island University and the Fairleigh Dickinson Executive MBA program.The bank is currently the brink of settling a lawsuit alleging a computer error led the bank to deny loan modifications to some homeowners who later lost their homes to foreclosure. An $18.5 million settlement is awaiting final approval from a district judge, who said Thursday he intends to approve the settlement on a preliminary basis after reviewing the notice to the class action case members, according to Law360.Tom Goyda, a spokesperson for Wells Fargo, told Law360 Thursday, “It is important to note that we have prevailed on all of these lawsuits that have reached a final decision and have not paid any money directly to a suing city/county or to any private lawyers.” Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

How Mortgage Delinquencies Could Impact Property Taxes

first_img Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Servicers Navigate the Post-Pandemic World 2 days ago Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago How Mortgage Delinquencies Could Impact Property Taxes in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago September 30, 2020 1,526 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: COVID-19 Worsening Impact of Wildfires Next: Areas at Highest Risk of a Foreclosure Surge Related Articles 2020-09-30 Christina Hughes Babb About Author: Christina Hughes Babb Home / Daily Dose / How Mortgage Delinquencies Could Impact Property Taxes An atypically high number of mortgage delinquencies and forbearance programs should not significantly affect property tax payments, reported Fitch Ratings, provider of credit ratings, commentary and research, with the caveat that there is an increased possibility of timing delays. The report from Fitch cites the 2008 recession, noting that during that period of economic crisis, despite a large number of defaults and forbearances, overall property tax collections saw minimal decline.”Mortgage servicers are obligated to advance property taxes when a borrower is not making mortgage payments and, due to the elevated number of delinquent loans and loans in forbearance, servicer liquidity is critical,” Fitch reported. “Unemployment levels remain high, and Fitch expects a slower economic recovery following a third-quarter 2020 bounce back. In the absence of further federal aid, mortgage delinquencies may increase, placing greater pressure on mortgage servicers.”Property taxes are an important, generally stable source of revenue for local governments, the report noted. These taxes also serve to “moderate higher volatility” found in “more economically sensitive taxes, service charges, and state aid.”As detailed in Fitch’s U.S. RMBS Sustainable Home Price Report (Second-Quarter 2020), home prices are rising (although growth is decelerating).Black Knight reported that mortgage delinquencies, excluding mortgages in foreclosure, declined in August to 6.9%, but the rate of decline was slower than in months leading up to it. The total delinquency rate during the Great Recession peaked at 10.6%.More forbearances have been offered that during the 2008 recession, but those too are beginning to decline, according to Mortgage Bankers Association, which this week reported that 6.8% of mortgages are in forbearance.Noted Fitch, “Mortgages in forbearance are generally reported as delinquent, although some borrowers with loans in forbearance are still making payments on time.”Some local governments have waived late-payment fines and/or postponed property tax deadlines for those who can prove that coronavirus has hindered their ability to pay, Fitch noted.Property tax delays, say the researchers at Fitch, “are predictable and allow officials to plan for alternate sources of liquidity until tax payments are received. In contrast, an inability by servicers to advance payments to governments could cause an unexpected short-term liquidity shortfall.”Fitch Ratings’ full report is available here. Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more