Judge Approves JPMorgan Chase RMBS Settlement

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: JPMorgan Chase Residential Morgage-Backed Securities Settlements Judge Approves JPMorgan Chase RMBS Settlement About Author: Brian Honea December 8, 2015 1,165 Views A federal judge has agreed to sign off on a $388 million settlement between JPMorgan Chase and investors to resolve claims by the investors that Chase misled them about the quality of $10 billion in residential mortgage-backed securities, according to a report from Bloomberg.U.S. District Judge Paul Oetken in the U.S. District Court for the Southern District of New York in Manhattan agreed that the settlement between JPMorgan Chase and the Fort Worth Employees Retirement Fund, along with other investors, is fair and said he would sign off on it, according to the report.According to a court opinion and order, the certificates at issue were presented in nine different offerings through a separate trust for each offering. The plaintiffs in the case contend that JPMorgan Chase, the defendant, should be held liable for material misstatements, falsehoods, and omissions with regards to the quality of the home loans underlying the securities, and that appraisers “falsified appraisal values and failed to follow established appraisal standards.” JPMorgan Chase has denied any wrongdoing in the case.The investors claim that after the demise of Lehman Brothers in 2008, the maximum value of the certificates was 62 cents on the dollar, according to Bloomberg.When reached by email, a spokesperson for JPMorgan Chase told DS News the bank had no comment on the settlement.JPMorgan Chase is no stranger to settlements over mortgage-backed securities for enormous amounts of money. In November 2013, the bank agreed to a $13 billion settlement with the federal government for selling toxic mortgage-backed securities to investors in the run-up to the 2008 financial crisis. At the time, the $13 billion was a record amount for a settlement between the government and a single private company; that record was broken nine months later in August 2014 when Bank of America settled with the government for $16.65 billion over similar claims of selling faulty RMBS that precipitated the crisis.Click here to read the opinion and order on the case of Fort Worth Employees Retirement Fund v. JPMorgan Chase. 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 in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles 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. center_img Subscribe JPMorgan Chase Residential Morgage-Backed Securities Settlements 2015-12-08 Brian Honea Home / Daily Dose / Judge Approves JPMorgan Chase RMBS Settlement The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Previous: Mortech and Calyx Integrate Mortgage Pricing and Loan Technologies Next: Is the Financial Stability Oversight Council Enabling ‘Too Big to Fail’? Share Save Sign up for DS News Daily last_img read more

What is Keeping Consumer Credit Default Rates Low?

first_img The Best Markets For Residential Property Investors 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Related Articles March 15, 2016 1,032 Views Consumer Credit Default First Mortgage Default Index S&P/Experian Consumer Credit Default Index 2016-03-15 Brian Honea Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, News Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brian Honea Previous: House Committee Chairman Promises ‘Bold and Better’ Alternative to Dodd-Frank Next: Lawmakers Lobby for CFPB to Exempt Credit Unions from Rulemakings Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / What is Keeping Consumer Credit Default Rates Low? Recent positive economic news and rising consumer confidence helped keep consumer credit defaults at low levels, according to the February 2016 S&P/Experian Consumer Credit Default Indices (SPICE Indices) released on Tuesday.The composite default index, which consists of the first and second mortgage default rates, the auto loan default rate, and the bank card default rate, bumped up by one basis point from January to February from 0.96 percent to 0.97 percent.The first mortgage rate remained unchanged for the second straight month in February at 0.84 percent. It was down over-the-year by 16 basis points (from 1.00 recorded in February 2015). The first mortgage rate appears to have stabilized after seeing three consecutive minor monthly increases in Q4.The second mortgage rate, meanwhile, bumped up from 0.60 in January to 0.65 in February, but was down by one basis point over-the-year.The default index rose month-over-month in only one of the five major cities covered in the report, Los Angeles (up four basis points to 0.76 percent).“Low and stable consumer credit default rates confirm the positive picture of the consumer economy seen in recent data on personal income and consumption,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Other positive indicators of the consumer economy include continued strong auto sales and rising home prices. Measures of consumer confidence and sentiment remain at high levels after slipping a bit in January and February. Consumer credit usage continues to expand, though January’s most recent data showed a somewhat slower pace than in the 2015 fourth quarter.”The Federal Open Market Committee (FOMC), the policy making body of the Federal Reserve, began its two-day March meeting on Tuesday with an announcement on the federal funds target rate forthcoming on Wednesday afternoon at 2 p.m. Eastern. The consensus among analysts is that the Fed will not raise the federal funds target rate in this meeting but that another increase will occur later in the year, possibly in the June FOMC meeting.“While inflation is largely absent from current economic reports, the same strong job growth boosting consumer spending may be setting the stage for future price increases or further action from the Fed to raise the interest rate,” Blitzer said. “For now, low default rates and a strong consumer economy are in place.” What is Keeping Consumer Credit Default Rates Low? The Week Ahead: Nearing the Forbearance Exit 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. Tagged with: Consumer Credit Default First Mortgage Default Index S&P/Experian Consumer Credit Default Index Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Subscribelast_img read more

Job Report Hits the Mark for July

first_imgHome / Daily Dose / Job Report Hits the Mark for July Previous: Counsel’s Corner: Oversight Brings Elevation to the Default Industry Next: Less Homeowner Movement Could Spell Trouble 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Share Save August 5, 2016 1,420 Views Sign up for DS News Daily Department of Labor Jobs Report 2016-08-05 Kendall Baer Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Subscribe Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Economists and analysts widely praised July’s Employment Situation from the Bureau of Labor Statistics released Friday, not just for the headline number, but also for the majority of the data contained within.Payrolls added 255,00 jobs added in July, which beat MarketWatch’s forecasted number of 185,000 by 70,000. July’s job gains, combined with June’s upwardly revised total of 292,000, brought the average monthly job gain for May through July up to 190,000 despite May’s dismal showing (24,000 after an upward revision).It was not all about the job gains, however; July’s employment summary also contained strong wage growth (an increase of 8 cents up to $25.69 per hour, and an over-the year increase of 2.6 percent) and the unemployment rate stayed below 5 percent at 4.9. The labor force participation rate, which has been hovering right above a four-decade low, nudged up to 62.9 percent.“Strong job growth is clearly a positive sign, said the Collingwood Group Managing Director Tom Booker. “It tempers recession fears, a key concern among home owners. “It’s all about raising ‘more boats’ in cities and rural areas where job growth has been lagging and what those jobs pay.”The more comprehensive U-6 unemployment rate, which includes the total unemployed plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, bumped up by 10 basis points from June to July (9.6 percent to 9.7 percent) but is still way down its post-recession peak of higher than 17 percent and is down by a full percentage point (10.7 percent) from July 2015.“It’s rare to have a jobs report with a strong headline, yet so few blemishes in the details, and we got one today,” Fannie Mae Chief Economist Doug Duncan said. “With upward revisions to prior months’ job gains, annual wage growth tying a seven-year best, an improved participation rate, and a longer workweek, the report gives support to those on the Fed hoping to increase rates this year, especially if the numbers are supported in future releases. The report should help soothe concerns over the health of businesses, which have seen sustained declines in capital expenditures.”On the housing side, the data from July’s employment situation is in line with predictions of recent economists that home prices will continue to increase at their current appreciation rate of higher than 5 percent for the next year.“Strengthening job and wage growth are positives for the demand side of the housing market, but weak residential construction hiring is worrisome from a supply perspective,” Duncan said. “Together, these developments suggest continued strong home price appreciation.”While the numbers from July’s report were mostly positive, some still doubt it will be enough to convince the decision makers at the Federal Reserve to raise the federal funds target rate before December.“This was another strong report that checked most, if not all of the significant boxes. Aside from the strong figure for job growth, labor force participation and year-over-year wage growth each ticked up slightly,” said Curt Long, Chief Economist at the National Association of Federal Credit Unions. “The labor market should remain strong as long as consumers maintain their robust spending pace. While this was a second consecutive strong jobs report, it will not be enough to move the needle for the Fed. For those policy makers in the ‘wait and see’ camp, poor GDP growth and weak inflation provide enough justification for waiting at least until December for the next rate hike.”Click here to see the entire July 2016 Employment Situation from the BLS. The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Department of Labor Jobs Report Job Report Hits the Mark for July Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, Newslast_img read more

Investors: Check Out the Latest SFR Market Stats

first_img Previous: Going Up: Residential Home Sales Next: Protecting Mortgage Consumers from Watchful Eyes 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, Headlines, Journal, Market Studies, News November 27, 2017 1,332 Views 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] Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Investors: Check Out the Latest SFR Market Stats According to data from the Census Bureau’s October New Residential Construction report and the National Association of Home Builders’ analysis, the number of single-family rental (SFR) homes increased in Q3 2017 with 10,000 starts.The analysis finds that the SFR market share—measured on a one-year moving average—was 3.8 percent of total starts for Q3 2017.Compared to the historical average of 2.8 percent, the current market share remains higher but has dipped from the 5.8 percent reading registered at the start of 2013.For the last four quarters, the total starts for SFR homes was 32,000 homes, representing decrease compared to 33,000 during the four quarters prior. However, it is important to note that due to the smaller size of this expanding market segment, the quarter-to-quarter movements are not typically statistically significant, according to the NAHB.The report notes that older homes are more likely to be rented, making the primary source of SFR homes not in construction, but existing housing—reporting from 2005 to 2015, 56 percent of the gains in the rental housing was due to SFR homes.While the single-family rental market continues to redefine its borders, the investment landscape offers an opportunity for many in a marketplace that have often been misunderstood. Navigating this dynamic terrain takes careful planning and strategic partnerships.The 2018 Five Star Single-Family Rental Summit provides an important conduit for SFR leaders to have the important conversations that will push this industry forward.The 2018 Five Star Single-Family Rental Summit begins March 19th and continues through March 21st at the Renaissance Nashville Hotel in Nashville, Tennessee to discuss the investment opportunities abound in this expanding market.To register, click here. Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Nicole Casperson Home / Daily Dose / Investors: Check Out the Latest SFR Market Stats The Best Markets For Residential Property Investors 2 days ago  Print This Post Subscribe Sign up for DS News Daily 2017-11-27 Nicole Caspersonlast_img read more

Florida Court Deflates Balloon Payment Plan

first_imgHome / Daily Dose / Florida Court Deflates Balloon Payment Plan 2018-08-08 Kristina Brewer Data Provider Black Knight to Acquire Top of Mind 2 days ago Florida Court Deflates Balloon Payment Plan August 8, 2018 3,634 Views 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 Data Provider Black Knight to Acquire Top of Mind 2 days ago Roy A. Diaz is the Managing Shareholder of Diaz, Anselmo Lindberg, P.A. The firm provides representation in Florida, Illinois, Ohio, Indiana, Kentucky, Wisconsin and Michigan. Diaz has been a member of the Florida Bar since 1988. He has concentrated his practice in the areas of real estate, litigation, and bankruptcy. He has represented lenders, servicers of both conventional and GSE loans, private investors, and real estate developers throughout his career with an emphasis on the mortgage servicing industry for over 25 years. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Share Save Previous: Higher Education Costs and High Foreclosure Rates Next: Fannie Mae Reaches Out to Borrowers in Wildfire Zones  Print This Post in Daily Dose, Featured, Foreclosure, Headlines, Journal, News Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Southern District of Florida (Federal Bankruptcy Court) issued a memorandum opinion addressing two debtors’ proposed chapter 13 plans, both of which included a balloon payment to their respective mortgagees in the final month of the plan. In re: Dora Benedicto, and In re: Claudia Del Carmen Gonzalez. The Court, limiting its opinion to an analysis of “the legality of the balloon payments” under section 1325 of the bankruptcy code, surmised that the balloon payments included in the proposed plans violated the “plain language” of 11 U.S.C.A. § 1325(a)(5)(B)(iii).Benedicto’s mortgage, held by US Bank, was secured by rental property. Under Benedicto’s proposed chapter 13 plan, she was to pay $444,610.20[i] over five years with a balloon payment of $112,882.12 in the final month of the plan. Gonzalez’s mortgage, held by CitiBank, was secured by her primary residence. Benedicto’s mortgage balance was “just under $700,000” when she filed for protection under chapter 13. Benedicto and US Bank agreed to a $381,000 valuation of the rental property. Multiplying the $381,000 valuation by 6.25% interest resulted in an aggregate amount of $441,610.20. Under Gonzalez’s proposed chapter 13 “cure and maintain” plan, she was to pay $42,409.34 over five years with a balloon payment of $28,996.48 in the final month of the plan. US Bank and Citibank objected to both proposed plans on the basis that the final balloon payments violated section 1325 of the Bankruptcy Code because they were not equal to the other monthly payments required under the plan. 11 U.S.C.A. § 1325(a)(5)(B)(iii).Section 1325 (a)(5)(B) of the bankruptcy code allows a court to confirm a chapter 13 plan over a secured creditor’s objection; however, among other requirements, the “periodic payments” must “be in equal monthly amounts.” The debtors and at least one bankruptcy court interpreted “periodic payments” to exclude a final balloon payment because a “balloon payment satisfies the debt in full and thus by definition cannot be repeated periodically, whether in equal amounts or otherwise.” In re Cochran, 555 B.R. 892 (Bankr. M.D. Ga. 2016).The Southern District disagreed with this limited definition of “periodic payment” saying it was “a stretch.” The Court explained:“As the last payment, the final payment will never be ‘recurring,’ but it is still the last in a series of ‘periodic’ payments and, therefore, must be equal in amount to the preceding payments.”The Court also rejected the debtors’ argument that the provision requiring plan payments to be in “equal monthly amounts” only applied to “creditors secured by personal property.” The Court noted the legislative history  “of this particular Bankruptcy Code provision is thin,” but that the placement of the amendment to section 1325(a)(5)(B) supported its conclusion that the legislature intended the provision to apply to “all holders of secured claims, including mortgagees.”The Court explained:[T]he ‘equal monthly payment’ provision is located in section 309(c) of Title III of BAPCPA. Title III is named ‘Discouraging Bankruptcy Abuse,’ and section 309 is titled ‘Protecting Secured Creditors in Chapter 13 Cases. The Court concluded the “text and structure of BAPCPA” supported its conclusion that a balloon payment was prohibited under 1325 as did the “majority rule” on the issue.The Southern District’s interpretation of section 1325 is well-founded. Without adequate monthly payments that reduce the debtor’s mortgage principal, the borrower may be unable or unwilling to make the balloon payment at the end of the chapter 13 plan despite reaping the benefits of the plan for all but the last month. Obviously, this holding and section 1325(a)(5)(B) does not prohibit the debtor and mortgagee from reaching mutually acceptable terms to a chapter 13 payment plan, but the bank will not be forced to accept a one-sided plan that could act as a disincentive to the debtor’s successful completion of the plan. About Author: Roy Diaz Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

The Connection Between Jobs, Wages, and Housing

first_img The Connection Between Jobs, Wages, and Housing Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Construction Employment Homes HOUSING Inflation Jobs Wages October 5, 2018 1,597 Views The unemployment rate in September fell to its lowest since 1969 to 3.7 percent, according to the latest jobs and wages data released by the Bureau of Labor Statistics on Friday. However, the growth of jobs softened to 134,000 in September compared with an average monthly gain of 201,000 over the last one year, the report revealed.Wage growth, though slow, continued its upward trend during the month rising 2.8 percent year-over-year.Despite this slow growth in wages and weak hiring, the report shouldn’t spark any concerns regarding the strength of the labor market and the broader economy, according to Doug Duncan, Chief Economist at Fannie Mae, who put the three-month average increase in jobs at a “healthy 190,000.””In addition, Hurricane Florence may have temporarily suppressed hiring, as suggested by the first drop in leisure and hospitality payrolls since last September, shortly after Harvey’s landfall,” Duncan said.According to Tendayi Kapfidze, Chief Economist, LendingTree, despite the disappointing jobs report, the “job market remains robust, emphasized by upward revisions to job numbers for both July and August totaling 87,000.””Although September’s wage increase pales in comparison to growing home prices—which rose another 7 percent last month—any increase is helpful for buyers trying to get in the market,” said Danielle Hale, Chief Economist at Realtor.com. “However, if this growth is seen as a sign of higher inflation, it could prompt mortgage rate increases, which would eat into home buying power.”However, though home buying power has seen a decline, it hasn’t been as much thanks to rising household incomes, according to Mark Fleming, Chief Economist, First American. “In September, consumer house-buying power declined by $28,000, compared to a year ago. If household income had not increased compared to a year ago, the increase in mortgage rates would have reduced consumer house-buying power by $38,000,” he said. However, despite rising incomes, wages have continued to disappoint throughout this year. “The low labor force participation rate may offer a clue as to why. The large pool of available people to enter the labor force is a drag on wages as it reduces the bargaining power of workers who are already employed,” Kapfidze explained.However, according to Duncan, the “Annual growth in average hourly earnings, which slowed one-tenth from the expansion high in the prior month, shouldn’t stoke inflationary concerns.”Wage growth, in fact, is a wild card, said Hale, that could have a significant implication on the housing market. “If we see significant wage increases, we could start to make up ground in home sales, which have been woefully behind last year’s gains. If wages remain stagnant, home sales will likely continue to taper,” she said.The recently rising mortgage rates are also likely to have an impact according to Fleming. “While recently rising mortgage rates have reduced consumer house-buying power, rising household income increases house-buying power,” he said.Looking at construction jobs which increased at a slower pace by 23,000 in November, Duncan said that the impact of Hurricane Florence was felt on the construction jobs market too. However, he said that any lost construction jobs associated with the hurricane should be recouped as the affected areas recover. Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Brock & Scott Acquires SHS Default Practice Group Next: Guardian Residential Closes $11.5M Fund About Author: Radhika Ojha Related Articles Sign up for DS News Daily in Daily Dose, Featured, Market Studies, Newscenter_img Home / Daily Dose / The Connection Between Jobs, Wages, and Housing  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Construction Employment Homes HOUSING Inflation Jobs Wages 2018-10-05 Radhika Ojha Servicers Navigate the Post-Pandemic World 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 Subscribe Demand Propels Home Prices Upward 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. last_img read more

Public Policy Institute Asserts its Recommendations for FHFA

first_img Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily November 19, 2018 1,669 Views in Daily Dose, Featured, Government, News, Secondary Market Previous: The Rise of Remodeling Next: What’s Driving the MSR and RMBS Markets? Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Public Policy Institute Asserts its Recommendations for FHFA Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago In its Performance & Accountability Report for financial year 2018 last week, the Federal Housing Finance Agency (FHFA) mentioned its proposed regulation on capital requirements for Fannie Mae and Freddie Mac. The following day, the American Enterprise Institute (AEI) published its lengthy response to the proposal.The FHFA first proposed the “new framework for risk-based capital requirements and a revised minimum leverage capital requirement for the Enterprises” in June, and it has now expanded its deadline for public comments from September 17 to November 16.The proposed rule offers two scenarios, one in which the GSEs would maintain capital equaling 2.5 percent of total assets and off-balance sheet guarantees. The second would require the GSEs to hold capital equal to 1.5 percent of trust assets and 4 percent of non-trust assets.The AEI stated in a letter to the FHFA last week that the proposals were insufficient to support potential risk at the GSEs and laid out detailed alternatives to the FHFA’s proposal.“Specifically, its binding risk-based rules would not require enough capital to address another housing crisis of comparable magnitude to the most recent one, and its minimum leverage ratios would not be consistent with requirements for global systemically important banks (G-SIBs) given the de facto status of the GSEs as systemically important financial institutions (SIFIs),” according to the AEI.On the other hand, the AEI asserted its own recommendations “would result in additional risk-based capital of more than 200 basis points relative to FHFA’s proposal and a minimum leverage ratio of 4 percent,” according to the letter.Operational risks are another concern for the AEI, which stated that the FHFA’s “add-on to cover operation risk is a scant 8 bps.” Continuing, the AEI stated, “For the two GSEs together, that amounts to $3.7 billion for 2017. To give a little bit of context to that, consider that 12 years ago, Fannie Mae restated its earnings downward by $6.3 billion because of accounting errors.”The AEI also asserted that “The proposed minimum leverage ratios would not produce results comparable to the largest banks for comparable assets.” While the FHFA suggested the GSEs are less risky than banks and should thus have a lower minimum leverage, the AEI suggested it is more relevant to compare the GSEs to global systemically important banks (G-SIBs) in the United States because the GSEs have been deemed systemically important. For G-SIBs, the minimum leverage is 6 percent.The AEI recommends increasing risk-based capital standards to account by about 200 basis points in total to address going-concern risk, operational risk, model risk, and to address counter-cyclical risks.The AEI recommends increasing the minimum leverage capital ratio from the proposed 2.5 percent or less to at least 4 percent and proposes limiting the use of preferred stock to meet both risk-based and leverage capital requirements. Subscribe American Enterprise Institute Capital Requirements Federal Housing Finance Agency FHFA Financial Crisis G-SIBs GSEs Minimum Leverage Risk-based Capital Requirements SIFIs 2018-11-19 Krista Franks Brock Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Public Policy Institute Asserts its Recommendations for FHFA  Print This Post Tagged with: American Enterprise Institute Capital Requirements Federal Housing Finance Agency FHFA Financial Crisis G-SIBs GSEs Minimum Leverage Risk-based Capital Requirements SIFIs The Best Markets For Residential Property Investors 2 days ago About Author: Krista Franks Brock The Best Markets For Residential Property Investors 2 days agolast_img read more

Changing the SFR Marketplace

first_img Changing the SFR Marketplace Previous: The Benefits of Automating Mortgage Documents Next: In Case of Emergency Servicers Navigate the Post-Pandemic World 2 days ago Acquisition Investors OwnAmerica portfolio Renters Warehouse SFR 2018-12-04 Radhika Ojha The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago December 4, 2018 1,475 Views Share 1Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Renters Warehouse, a full-service real estate investment company is on its way to becoming the largest company in this space with the acquisition of OwnAmerica, the second-largest single-family rental (SFR) investment marketplace in the U.S.The transaction, which is scheduled to officially close on January 1, 2019, will help Renters Warehouse get the marketplace technology that allows real estate investors to buy and sell SFR properties.Greg Rand, CEO, OwnAmerica will be joining the Renters Warehouse executive team as Chief Strategy Officer and will be guiding the continued development of the marketplace platform, as well as building out and leading a team of local real estate investment agents in all Renters Warehouse markets to assist investors with their buying and selling decisions.“For over a decade, Renters Warehouse has been working to build the nation’s largest and best single-family rental property management company,” said Kevin Ortner, CEO, Renters Warehouse. “As we strive to offer our clients better access to information, data, and resources to make investing easier, OwnAmerica’s portfolio visualizer tools and market research capabilities stood out as industry leading and a great addition to our suite of services. This technology, coupled with our full-service property management solution, will make Renters Warehouse America’s largest full-service real estate investment company.”The new Renters Warehouse marketplace will allow investors to buy, manage, and sell properties in one place. Renters Warehouse has said that it would also give investors access to stock-like analytics and day-to-day property management.“Investors in the housing market are independent, patriotic people who use real estate investing to create long-term financial security for the people they care about,” Rand said. “There has never been a total solution to help them envision, plan, execute and manage a long-term investment strategy. We are incredibly excited to join forces with Renters Warehouse to create a first-of-its-kind solution. We are going to help millions of people own America.”At the time of acquisition, OwnAmerica had over $21 billion in total assets on their platform, with over $200 million assets for sale. Post-acquisition, “Renters Warehouse’s 14,000 clients across the country will have access to these assets and can build and expand their portfolio through this technology,” Renters Warehouse said in a statement. “For sellers, the selling and buying process is discrete. Renters are not disturbed, meaning rental income isn’t either. Selling commissions are also nearly half of what you’d pay with a traditional real estate agent.” Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Related Articlescenter_img Tagged with: Acquisition Investors OwnAmerica portfolio Renters Warehouse SFR Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Radhika Ojha Home / Daily Dose / Changing the SFR Marketplace in Daily Dose, Featured, Investment, News Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. last_img read more

The ‘Unclear’ Future of the Community Reinvestment Act

first_img  Print This Post The ‘Unclear’ Future of the Community Reinvestment Act Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / The ‘Unclear’ Future of the Community Reinvestment Act Related Articles About Author: Christina Hughes Babb Demand Propels Home Prices Upward 2 days agocenter_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago A primary goal of 1977’s Community Reinvestment Act (CRA) was to reverse the effects of redlining, a practice by which the federal government and banks actively avoided lending to borrowers from lower-income and minority neighborhoods.Some housing advocates believe pending rule changes will weaken the CRA and that, though it could use some updates, now is not the time.In her piece published earlier this week, Paula Melton from BuildingGreen.com examines both sides of the issue and explores options remaining for entities hoping to halt the trajectory of recently proposed changes.Although it’s not perfect, the CRA has been “a key driver of financial equity and helped spur hundreds of billions of dollars of investments,” Melissa Stegman, Senior Counsel at the Center for Responsible Lending (CRL), told Melton.Seema Agnani, Executive Director at National Coalition for Asian Pacific American Community Development, added that “the CRA is one of the most important tools we have in the community development field to put pressure on the financial institutions to give back in the places where they are making profits—particularly in low-income communities.”Researchers at the Urban Institute’s Housing Finance Policy Center wrote last summer, “Even though the banking industry has drastically changed since the CRA was enacted, the current regulations are working reasonably well. Any modernization efforts should be rooted in data, and…[they added], there is no need for change in the middle of a pandemic.”But prior to the stated changes proposed by the Office of the Comptroller of the Currency (OCC) last May, many agreed the act needed modernization to fit today’s digital environment as well as to better address the racial-equality issue.Josh Silver, Senior Advisor at the National Community Reinvestment Coalition, told BuildingGreen the CRA, in addition to needing updates that take into consideration the proliferation of electronic banking, could do more to benefit struggling communities. He added that the order has not changed at all since 1995.“It has been really important for driving investments,” he told BuildingGreen of the act, “but it hasn’t always reached the communities that are harder hit during times of economic uncertainty and crisis.”And, wrote Melton, “there’s also the grading system, which banks have complained about for years, saying it’s not sufficiently standardized and is therefore too subjective.”Though many were on board with rule changes, many were not satisfied with the OCC’s amendments, which opponents said diminished existing provisions.”Critics argue … the OCC has weakened the law under the guise of modernization, incentivizing large infrastructure projects instead of community needs and potentially bringing full-fledged redlining back,” according to the BuildingGreen article.“It took away the original spirit of the CRA,” Agnani told BuildingGreen. “There is really broad consensus around the nonprofit sector that it does not achieve what CRA is intended to do.”Furthermore, “It would allow banks to ignore 20% of assessment areas and still pass,” Stegman reportedly said. “This could really result in unchecked disinvestment and a return to redlining.” Also, she said, “The rule disincentivizes investment in low- and moderate-income communities and communities of color. The activities of investment don’t have to primarily benefit low- and moderate-income communities.”The outcome remains to be seen.As is pointed out in the article, the OCC is just one of three regulatory bodies that oversee banks and assign their publicly available CRA grades. It is uncertain whether its final rule will hold up. Melton writes that she secured comment from OCC but that the representative did not follow through with an interview.The Federal Reserve Board (the Fed) reportedly recently released a competing Advance Notice of Proposed Rulemaking (ANPR) for the CRA. (The third regulator, the FDIC, hasn’t engaged in rulemaking, according to the report.)The Hosue Financial Services Committee Chair Maxine Waters also has sharply opposed the OCC’s proposed changes.At the time of the article’s publication earlier this week, Melton writes, “it’s unclear how the differences between OCC and the Fed might be resolved.”The article, which can be read in full here, details the ins and outs of the rulemaking and amendment process and where this issue stands.Essentially, Melton concludes, “it’s not too dramatic to say that whole communities are waiting to have their fate decided for them amid this regulatory back-and-forth.” Previous: Missed Payments, Financial Stress Straining Investors & Landlords Next: 30-Day Delinquencies at Lowest Rate Since 1979 November 11, 2020 1,240 Views 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. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago 2020-11-11 Christina Hughes Babb Subscribelast_img read more

Stranded boat skipper backs calls for Malin Coastguard retention

first_img 448 new cases of Covid 19 reported today Stranded boat skipper backs calls for Malin Coastguard retention By News Highland – July 12, 2012 NPHET ‘positive’ on easing restrictions – Donnelly Pinterest RELATED ARTICLESMORE FROM AUTHOR News Help sought in search for missing 27 year old in Letterkenny Pinterest WhatsApp The skipper of a boat whch got into difficulty a mile off Arranmore Island yesterday has said that it is vital that Malin Head Coastguard station remains open.The crew onboard the ‘Flying Heart’ diving vessel got into difficulty yesterday morning  – they recieved assistance from the Arranmore Lifeboat within 30 minutes and were then taken to safety.Brendan Homan, who is the skipper of the Flying Heart, said this underlines the need to retain Malin Head coastguard station as is:[podcast]http://www.highlandradio.com/wp-content/uploads/2012/07/bren830BOAT.mp3[/podcast] Facebookcenter_img Previous articleCouncil agrees to fund Letterkenny road improvementsNext articleAlgae Bloom causing financial hardship for Donegal farmers News Highland Guidelines for reopening of hospitality sector published Twitter Facebook WhatsApp Google+ Twitter Three factors driving Donegal housing market – Robinson Calls for maternity restrictions to be lifted at LUH Google+last_img read more