Can HAMP Borrowers Absorb Higher Payments When Mods Reset?

first_img  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Share Save The Best Markets For Residential Property Investors 2 days ago Approximately half a million homeowners who received a mortgage loan modification in 2010 through the government’s Home Affordable Modification Program, commonly known as HAMP, are due to reset in 2015 – and those homeowners will be facing slowly increasing monthly mortgage payments.Will these homeowners be able to handle the payment increases, or will there be a massive wave of re-defaults?The U.S Department of Treasury and Department of Housing and Urban Development (HUD) launched HAMP in 2009 as part of its Making Home Affordable initiative to provide relief for homeowners facing financial hardship by reducing monthly payments to affordable levels through lowered interest rates and modified loan terms. The goal of the modifications was to reduce monthly payments to about 31 percent of the homeowner’s income. According to Mark McArdle, Chief Homeownership Preservation Officer at Treasury, HAMP has saved distressed homeowners an average of about $547 per month (about 39 percent) on mortgage payments by lowering their interest rate in many cases to 2 percent.There are some who are not sold on the effectiveness of HAMP. One of those is Bankrate.com Chief Financial Analyst Greg McBride, who said in 2009 that homeowners receiving a modification through HAMP were simply “kicking the can down the road” and now that we are in 2015, “we’re at the end of the road” because of all the HAMP mods due to reset this year. Furthermore, he said he thinks many homeowners will be “shocked” to find out that “permanent didn’t really mean permanent” and instead meant five years.”What happens is that payment starts to normalize – that 2 percent increases by 1 percentage point per year,” McBride said. “So what’s going to happen is these homeowners are going to see their mortgage payments go up this year, next year, and in many cases, the year after that. That’s where the potential problem is. Household incomes have been stagnant and many homeowners don’t have the additional room in their budget to absorb higher payments. Even if they can absorb the first payment increase, the cumulative increase of payments in subsequent years could prove problematic.”Just how problematic will the interest payment increases, known as “step-ups,” be? That remains to be seen, but even without the interest increases, re-default rates on HAMP mods have hovered around 40 percent for mods with a 2010 vintage.As of the end of Q3 2014, the latest data available, HAMP has helped about 1.4 million distressed homeowners receive permanent loan modifications.  Of the approximately 60,000 permanent modifications completed in 2009, the first year of HAMP, about 42 percent of those modifications were 90 or more days delinquent 42 months after the modification became permanent. Of the nearly 511,000 HAMP modifications with a vintage of 2010, that percentage was about the same for those with a 2009 vintage – about 41 percent. That is double the percentage of overall 90-day delinquency rate of all HAMP mods completed through the second quarter of 2013, which is 20 percent. McArdle said one of the main reasons why re-defaults on HAMP mods with a 2009 or 2010 vintage occur is because servicers did not start adapting to the the framework that HAMP created until 2011 and 2012. Also, prior to June 2010, verification of income was not required for a HAMP mod.Treasury has been considering the possibility of re-defaults on HAMP mods and has ways of helping those borrowers for years. McArdle said they currently have a comprehensive response plan and have tools available to help borrowers handle the step-ups and avoid re-defaulting. He said the median increase for the first step-up after the five-year HAMP mod expires is about $95 per month nationwide, varying sometimes greatly from state to state. The median increase for the second step-up could be as much as $200, he said, although more than 90 percent of HAMP borrowers will still have an interest rate below 5 percent after three step-ups and therefore still have a lower monthly payment than they had before they received the HAMP mod.”While re-default remains an unfortunate outcome for some borrowers, clearly without HAMP, national foreclosures rates would have been much higher and many borrowers would not have received the assistance they needed,” McArdle wrote. “HAMP continues to be the strongest available program for mortgage modifications. Receiving assistance through HAMP gives homeowners a valuable opportunity to strengthen their financial footing and stay in their homes.”McArdle said that only a small percentage of borrowers who re-default on HAMP mods actually go into foreclosure. Many who re-default are later able to find solutions to avoid foreclosure. He said Treasury has really pushed its short sale program, increasing the incentive from $3,000 up to $10,000. Another program Treasury has touted lately for HAMP is the Pay for Performance Incentive, which allows qualifying HAMP borrowers to receive up to $10,000 in principal reduction on the life of the mortgage loan after the five-year mod expires.”Of those homeowners who have not been able to keep up with their modified payments under HAMP, the majority have received other forms of assistance or reinstated or paid off their mortgage loans,” McArdle wrote. “HAMP requires servicers to reach out to any homeowner who falls behind on a modification to review all other assistance options, before the servicer starts foreclosure proceedings.”McArdle is scheduled to be a panelist on the “Modifying Modifcation” panel at the upcoming Five Star Government Forum in Washington, D.C. on March 18. This panel will assess HAMP and its effect on stabilizing the housing market and assisting distressed homeowners.With regard to the possibility of re-default, McArdle said Treasury is ready. One of the services offered is post-mod counseling for those that are at risk of re-default. Also, homeowners are notified 120 days prior to the first reset and 60 days before the first step-up.”Treasury will maintain its oversight of participating servicers,” McArdle said in a note to servicers last March. “We will monitor the interest rate resets to ensure that if signs of homeowner distress arise, servicers are ready and able to help by providing loss mitigation options and alternatives to foreclosures.”McBride said although a certain amount of HAMP re-defaults is unavoidable, it will likely not trigger a housing bust similar to the one the country experienced seven years ago.”The numbers aren’t that big relative to what we saw during the housing bust and it’s spread out over a period of several years, so it’s not coming all at once,” McBride said. Demand Propels Home Prices Upward 2 days ago Tagged with: HAMP Home Affordable Mortgage Program Treasury Demand Propels Home Prices Upward 2 days ago HAMP Home Affordable Mortgage Program Treasury 2015-01-26 Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Loss Mitigation, News Previous: Freddie Mac to Auction $410 Million Worth of Delinquent Mortgage Loans Next: Senate Banking Committee Chairman Names Members of Subcommittees The Week Ahead: Nearing the Forbearance Exit 2 days agocenter_img Related Articles Servicers Navigate the Post-Pandemic World 2 days ago Can HAMP Borrowers Absorb Higher Payments When Mods Reset? Governmental Measures Target Expanded Access to Affordable Housing 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. January 26, 2015 1,771 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Can HAMP Borrowers Absorb Higher Payments When Mods Reset? Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Brian Honealast_img read more

Fed Reform, Mortgage Access Bills Under Threat of Veto from the White House

first_img  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Fed Reform, Mortgage Access Bills Under Threat of Veto from the White House Servicers Navigate the Post-Pandemic World 2 days ago Previous: Delgado Applauds Passage of Ohio Foreclosure Fast Track Bill, Urges Senate to Act Next: Will the Elusive Interest Rate Hike Finally Happen in December? About Author: Brian Honea Sign up for DS News Daily Subscribe November 18, 2015 1,782 Views 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. The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Government, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Federal Reserve Chair Janet Yellen is not the only one who disapproves of a bill that calls for more transparency from the Fed. Now the White House is threatening to veto that bill as well as another piece of legislation that would allow loans in portfolio to qualify for an exemption under the Consumer Financial Protection Bureau (CFPB)’s qualified mortgage (QM) rule. Both bills passed in the House on Wednesday.Yellen wrote a letter to Speaker of the House Paul Ryan and House Democratic leader Nancy Pelosi on Tuesday exhorting them to reject H.R. 3189, known as the Fed Oversight Reform and Modernization (FORM) Act, which passed in the House on Wednesday with bipartisan support with a vote of 241 to 185. The bill passed in the House Financial Services Committee by a 33-25 vote on July 29.The FORM Act requires the Fed to transparently communicate its monetary policy decisions to the American people by requiring the Fed to generate a monetary policy strategy of its own choosing, in order to provide the American people with more transparency about the factors that lead to the Fed’s monetary decisions. The Act would also eliminate the restrictions on the Government Accountability Office’s ability to audit the Fed, allowing the GAO to conduct an audit of the Fed anytime there is a policy change. The bill is sponsored by Rep. Bill Huizenga (R-Michigan), who is the House Monetary Policy and Trade Subcommittee Chairman.“Subjecting the Federal Reserve’s exercise of Monetary policy authority to audits based on political whims of members of the Congress—of either party—threatens one of the central pillars of the Nation’s financial system and economy, and would almost certainly have negative impacts on the Federal Reserve’s work to promote price stability and full employment,” the White House said in its Statement of Administration Policy released this week. “H.R. 3189 also would impose numerous, burdensome requirements for the Federal Reserve Board rulemaking authorities, including the imposition of a duplicative requirement that the Federal Reserve Board undertake a proscriptive cost-benefit analysis and a post-adoption impact assessment when promulgating rules.”The White House concluded the statement by saying, “If the President were presented with H.R. 3189, his senior advisors would recommend that he veto the bill.”“If the President were presented with H.R. 3189, his senior advisors would recommend that he veto the bill.”The White HouseH.R. 1210, known as the Portfolio Lending and Mortgage Access Act, passed in the House on Wednesday with bipartisan support by a 255 to 174 vote. The bill is sponsored by Rep. Andy Barr (R-Kentucky) and will provide a common sense, flexible approach that allows residential mortgage loans held in portfolio to qualify for a safe harbor equivalent to that of the CFPB’s Qualified Mortgage rule. H.R. 1210 will allow community banks to meet the credit demands of consumers, while incentivizing that banks and credit unions ensure the borrower can meet the monthly obligations of a mortgage.“It should not be the job of Congress or unelected and unaccountable Washington regulators to decide who gets a mortgage and who does not, or to force community banks and credit unions to function like regulated utilities, issuing only plain-vanilla mortgages rubber-stamped in Washington,” House Financial Services Committee Jeb Hensarling (R-Texas) said. “This common sense legislation recognizes that the most effective way to ensure that a borrower has the ability to repay is not a one-size-fits-all, top-down regulation from Washington that mandates the terms of loans and underwriting practices.”The White House was critical of H.R. 1210, saying that it would “undermine critical consumer protections by exempting all depository financial institutions, large and small, from QM standards—including very basic standards like verifying a consumer’s income—as long as the mortgage loans in question are held in portfolio by the institution.” Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: CFPB Federal Reseve H.R. 1210 H.R. 3189 Qualified Mortgage Rule White House CFPB Federal Reseve H.R. 1210 H.R. 3189 Qualified Mortgage Rule White House 2015-11-18 Brian Honea Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Fed Reform, Mortgage Access Bills Under Threat of Veto from the White House Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Drilling into Foreclosure Data

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, Market Studies, News September 12, 2017 1,436 Views The Best Markets For Residential Property Investors 2 days ago Share Save Related Articles 2017-09-12 Joey Pizzolato Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Home / Daily Dose / Drilling into Foreclosure Data Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Thirty day-plus delinquencies are down 0.8 percent year-over-year, according to the July CoreLogic Loan Performance Insight report. In June of 2016 the 30-plus delinquency rate was 5.3 percent—that figure dropped to 4.5 percent in June of 2017.The foreclosure rate also dropped to a 10 year low, at 0.7 percent according to the report. “After peaking at 3.6 percent in December of 2010, June foreclosure rate was the lowest in 10 years,” said Frank Martell, President and CEO of CoreLogic. “Across the 100 most populous metro areas, the foreclosure rate varied from 0.1 percent in Denver-Aurora-Lakewood to 2.2 percent in New York-Newark-Jersey City.”On a national scale, the percentage rate of delinquency dropped year-over-year in almost all stages. Loans that were 30-59 days past due dropped from 2.1 percent in 2016 to 2.0 percent in 2017. Similarly, loans that were 60-89 days past due dropped to 0.6 percent from 0.7 percent. Loans 120-plus days past due had the largest change, dropping to 1.6 percent from 2.2 percent a year prior. Loans that were 90-119 days past due remained unchanged at 0.3 percent.By state, serious delinquencies were down in every state except Alaska and North Dakota, where they saw an increase and no change, respectively.According to the report, drops in delinquencies across the board, as well as an increase in payroll jobs, bodes well for the U.S. housing market in the coming years. “The CoreLogic Home Price Index increased 6 percent and payroll employment grew by 2.2 million jobs in the year ending June 2017, supporting further declines in delinquency rates,” said Dr. Frank Nothaft, Chief Economist at CoreLogic. “The forecast for the coming year includes 5 percent home-price appreciation and further job growth, putting renewed downward pressure on mortgage delinquency rates.”You can read the full report here, and the press release here. Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Joey Pizzolato Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: Risk Change Since Dodd-Frank Next: Housing Market Remains Strong: Great Time to Sell Drilling into Foreclosure Data Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected] Subscribelast_img read more

Availability Over Location: Housing Market Shifts Focus

first_img Tagged with: Affordability Availability Demand HOUSING Housing Market Inbound Inventory Location metros Outbound Supply Unaffordability March 5, 2018 1,874 Views Home / Daily Dose / Availability Over Location: Housing Market Shifts Focus The Best Markets For Residential Property Investors 2 days ago Buying a house in 2018 has become steadily more intricate with consistent declines in availability and continued price increases, according to an analysis by Realtor.com that identified a shift in buyer activity. The report analyzed thousands of views to Realtor.com’s website covering the 100 largest metropolitan areas in the fourth quarter of 2017 compared to 2016 and identified a major trend: affordability and availability over location.The analysis primarily focused on a metro’s inbound to outbound ratio, which was defined as the ratio of views to that metro from other metros with notable interest from more expensive markets to less expensive nearby markets.The report found shifting interests included demands for properties in smaller cities such as Bakersfield and Fresno as compared to their more expensive Californian counterparts such as San Francisco, Los Angeles, and Sacramento.On average the metropolitan areas with the most inbound views had a median listing price of $291,000 compared to the $521,000 of areas such as San Francisco, New York, Washington, D.C., and Seattle.Home buyers instead focused their searches on more affordable locations outside of major metropolitan areas where markets with the highest overall interest were more affordable, had higher expected employment growth, and more available inventory than the markets they receive their inbound views from, the report noted.Another contributing factor in this shift was the significantly lower inventory available for buyers in these major metros.“This low inventory availability, coupled with unaffordability and only average employment performance, could explain why these markets are seeing a lower ratio of inbound views to outbound views,” said Sabrina Speianu, Economic Research Analysist for Realtor.com and the writer of this report. “The markets with the highest overall inbound to outbound ratios are more affordable, have higher expected employment growth, and more available inventory than the markets they receive their inbound views from.” The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: The Opportunities and Challenges of Blockchain in Mortgage Servicing Next: Chains of Knowledge Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Affordability Availability Demand HOUSING Housing Market Inbound Inventory Location metros Outbound Supply Unaffordability 2018-03-05 Staff Writer Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Availability Over Location: Housing Market Shifts Focus Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Staff Writer Subscribelast_img read more

Much Left to Do for Homeownership

first_img Related Articles Servicers Navigate the Post-Pandemic World 2 days ago About Author: Nikitra Bailey Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Editor’s Note: This feature originally appeared in the September issue of DS News.Every year since 1988, Harvard University’s Joint Center for Housing Studies (JCHS) has published an annual report entitled “The State of the Nation’s Housing.” Its 2018 edition, released on June 18, came during a year-long celebration of the 50th anniversary of the Fair Housing Act. The 2018 JCHS report’s findings, however, signal that America’s journey towards fair housing is still incomplete, even after reaching its golden anniversary.This year’s JCHS report found several disheartening realities. Growing income inequality is driving the increase in cost-burdened households for renters and homeowners. The burgeoning impacts of the nation’s still-growing student loan debt are delaying the creation of new households, hitting millennials the hardest. And even after five decades, a racial gap in homeownership persists, especially between black and white consumers. In fact, it’s getting worse.While Hispanic and Asian-Americans experienced respective homeownership gains of 5.7 percent and 7.1 percent, according to the JSHS report, a 29 percent gap between whites and African-Americans remains. In 2017, 40.4 percent of African-American families were homeowners, while the measure for white families stands at 72.3 percent.These findings confirm that 50 years’ of fair housing initiatives have yet to achieve their goals. For too many people of color, fair housing in 2018 remains just as elusive as it was when President Lyndon Johnson signed the historic legislation in 1968.During that signing, President Johnson said, in part, “With this bill, the voice of justice speaks again. It proclaims that fair housing for all—all human beings who live in this country—is now a part of the American way of life.”The Fair Housing Act provides protections against discrimination based on race, color, national origin, religion, sex, disability, and familial status in the sale and rental of housing by banks, realtors, and insurers. Providing false or misleading information is also illegal under the Act. Even so, significant racial and ethnic disparities within homeownership remain.The Center for Investigative Reporting found earlier this year that the homeownership gap between blacks and whites is now wider than it was during the Jim Crow era. Another independent research report by the Economic Policy Institute found that the rate of black homeownership between 1968 and 2018 has remained virtually static—41.1 percent in 1968 compared to 41.2 percent in 2018.In 61 metro areas across the country, blacks were found to be more likely than whites to be denied a conventional mortgage loan. Moreover, while the number of nonbank mortgage lenders is on the rise, these businesses are not required to adhere to the Community Reinvestment Act—a law that requires banks to meet the credit needs of the community, including those of low- to moderate-income borrowers.According to the Center’s April 11 Reveal newswire, “Since President Donald Trump took office, the Justice Department has not sued a single lender for failing to lend to people of color.” Beyond a failure to enforce this essential law, the Trump Administration has also included fair housing among its overall regulatory reversals. HUD effectively suspended the Affirmatively Furthering Fair Housing (AFFH) rule by delaying implementation until at least October of 2020. The rule was adopted in 2015 to carry out critical goals under the Fair Housing Act, working to end discrimination in housing and foster inclusive communities.The White House also signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act, a bank deregulation bill that includes a provision that would exempt 85 percent of banks from reporting Home Mortgage Disclosure Act (HMDA) requirements that are needed to help root out discrimination in mortgage lending.News reports earlier this year stated that HUD Secretary Ben Carson wanted to remove references to “inclusive” communities “free from discrimination” from the organization’s mission statement. The draft statement now reads: “HUD’s mission is to ensure Americans have access to fair, affordable housing and opportunities to achieve self-sufficiency, thereby strengthening our communities and nation.”The Office of Fair Lending and Equal Opportunity at the Bureau of Consumer Financial Protection (BCFP, formerly the Consumer Financial Protection Bureau) was moved out of the Office of Supervision and Enforcement and into the Office of Education and Engagement. The staff would be transferred to an office focused on education, obstructing their ability to ensure robust enforcement of the fair lending laws.The Office of the Comptroller of the Currency also issued a proposal that will weaken the Community Reinvestment Act, which is a fair lending law that has been crucial in expanding financial access to communities that have long faced—and still face—discrimination. Each year, the Center for Responsible Lending prepares an analysis of the annual Home Mortgage Disclosure Act (HMDA) report. Published each fall, the report is the only federal data report that tracks mortgage lending by race, ethnicity, and locale. The most recent analysis (2016) found continuing mortgage denial rates for consumers of color.In this reporting year, African-Americans and Hispanic White applicants continue to have the highest mortgage denial rates. Furthermore, although 2,123,000 conventional loans were approved in 2016, consumers of color received a combined 187,958 conventional loans, or 9 percent of the nation’s conventional mortgage loans that year. By contrast, 324,566 non-conventional mortgage loans were approved in 2016 for African-Americans and Hispanic Whites.At a time when mortgage rates are at their lowest, it is crucial to the nation’s economy that consumers take advantage of those historically low-interest rates. Broad access to the most cost-efficient mortgages (i.e., conventional loans) would increase the strength of our still recovering economy.Today’s rates of homeownership between whites and people of color are not the result of luck. Instead, they are the direct result of federal housing policy that has explicitly provided homeownership opportunities to white Americans while denying them to people of color. The federal government’s adoption of the Home Owners Loan Corporation’s underwriting guidelines in 1933, including redlining policies in the administration of its federally insured mortgage programs, institutionalized racial discrimination.A report by Prosperity Now, an organization that works to ensure that everyone in our country has a clear path to financial stability, wealth, and prosperity, showed that, due to redlining, only two percent of Federal Housing Administration-insured mortgage loans went to homebuyers of color during the first 35 years of the program. In the state of Mississippi alone, just two out of 3,229 Veterans Affairs-insured mortgages went to African-Americans servicemembers seeking to finance a home or business within the first three years of the program. This federal action provided whites with a head start in building wealth in the form of home equity through homeownership.That wealth has been transferred across generations and is a significant contributor to today’s racial wealth gap. White Americans now have ten times the wealth of Latinos and twelve times the wealth of African-Americans, according to Pew. Specifically, whites have a median wealth of $141,900, compared to $13,700 and $11,000 for non-Hispanic whites and African-Americans, respectively. According to the Institute on Assets and Social Policy at the Brandeis Center and Demos, most of this wealth inequality can be attributed to the differing rates of homeownership between whites and people of color. Homeownership has long been the primary way that most middle-class families build wealth and economic security. Widespread access to mortgage credit is critical for building family wealth, closing the racial wealth gap, and sustaining the housing market overall—which, in turn, contributes significantly to our overall economy.The lasting impacts of the Great Recession have also eroded the modest increase in homeownership rates that African-American and Latino families enjoyed in the years since the passage of the Fair Housing Act in 1968. “Foreclosures by Race and Ethnicity: The Demographics of a Crisis,” a 2010 research report by the Center for Responsible Lending, found that African-Americans and Latinos were unfairly targeted with risky adjustable-interest-rate mortgages leading up to the housing crash of 2008 and faced foreclosure at a rate 2 to 2.5 times greater than whites. It further found that many of these borrowers qualified for safer loans with fixed-rate mortgages.Unfortunately, the decline in homeownership that followed the Great Recession wiped out 30 years of homeownership gains among African-Americans and substantially reduced the homeownership rate among Hispanics. Between 1970 and 2000, the African-American homeownership rate increased by 5.5 percent and the Hispanic homeownership rate increased 2.9 percent. Since 2000, the homeownership rate decreased 6.1 percent among African-Americans and 1.8 percent among Hispanics. While Hispanics are starting to experience a recovery, the JCHS report shows that African-Americans are not, and in fact remain at levels of homeownership comparable to when the Fair Housing Act of 1968 first became law.Today, the opportunity to purchase, maintain, and refinance a home remains elusive for significant numbers of low-wealth families and people of color. As a result, these communities lag far behind wealthier and white communities. Pricing is a critical challenge in the extension of mortgage credit to families of color.Underwriting structures determine if borrowers are creditworthy, but pricing structures determine if a creditworthy borrower can afford a mortgage. Differential pricing creates an additional barrier to mortgage credit by increasing the price, sometimes significantly, for some borrowers relative to others.There is evidence of price acting as a barrier even in today’s mortgage market. For example, although Fannie Mae’s guidelines allow the GSEs to purchase loans with credit scores as low as 620 and loan-to-value (LTV) ratios of up to 97 percent, very few loans purchased by the GSE feature these characteristics. One reason is that excessive risk-based pricing by both the GSEs and private mortgage insurers add significantly to the cost of loans for borrowers with lower scores and less wealth due to historical discrimination for a down payment.The combination of loan-level price adjustments (LLPAs) and mortgage insurance (MI) premiums adds over 300 basis points to the cost of a mortgage for a borrower with a credit score of 620 and an LTV of 97 percent. According to the Urban Institute, these redundant requirements have prevented an additional 6 million mortgage loans from being originated. Moreover, CoreLogic estimates that more than 250,000 of these loans could go to borrowers of color annually.Because of these unnecessary pricing restrictions, FHA continues to serve as a vital source of mortgage credit for lower-wealth families. Moreover, borrowers of color are overrepresented in FHA-insured mortgages, including upper-income families of color. An FHA mortgage is often their only option despite the reality that many of these consumers might have the income to sustain monthly payments but lack the down payment or savings for a lower LTV conventional loan due to past discrimination within the mortgage market.Earlier this year, a newly released CRL research report entitled “Repairing a TwoTiered System: The Crucial but Complex Role of FHA” found that FHA purchase-market share among high-income African-American and Latino borrowers had increased the most. This contrasts with pre-Recession patterns. Since 2009, FHA purchase-market share increased by 642 percent for African-Americans and 904 percent for Latino borrowers, respectively.If fair housing is to become a reality in America, it will require not only the enactment of federal laws like the Fair Housing Act, Equal Credit Opportunity Act, and Community Reinvestment Act but also robust and ongoing enforcement. Every level of government can and should play a role in delivering a housing market with a level playing field, without regard to race.It is time for all of America to embrace the spirit as well as the letter of these laws without regard to race, ethnicity, gender, or disability. Every creditworthy consumer should have the same level of consideration—and access. Just as President Johnson stated 50 years ago, “We have come some of the ways not near all of it. There is much yet to do.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Diversity Fair Housing Act Homeowners Inclusion Share Save September 27, 2018 4,439 Views Demand Propels Home Prices Upward 2 days ago Much Left to Do for Homeownership  Print This Post The Best Markets For Residential Property Investors 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News, REO Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Diversity Fair Housing Act Homeowners Inclusion 2018-09-27 Radhika Ojha The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: The Top Markets for Investing in Foreclosed Properties Next: The Economic Factors Impacting the Housing Market Nikitra Bailey is EVP of the Center for Responsible Lending (CRL), where she oversees CRL’s coalition building and constituent relations. Based in the Durham office, Bailey is the lead strategist for partnerships that span civil rights, faith, women, labor, and community advocates across CRL’s branches in California, North Carolina, and Washington, D.C. Bailey also leads CRL’s access to mortgage credit advocacy to ensure that low-wealth families and people of color are fairly served by our nation’s housing finance system. She has also provided technical assistance to local municipalities, state legislators, and federal policymakers on abusive lending practices ranging from small-dollar loan abuses to preventing foreclosures. Sign up for DS News Daily Home / Daily Dose / Much Left to Do for Homeownershiplast_img read more

Housing and Mortgage Experts Talk Employment

first_img  Print This Post Share Save Home / Daily Dose / Housing and Mortgage Experts Talk Employment Employment increased by 196,000 in March, according to the most recent U.S. Bureau of Labor Statistics Employment Situation Summary.Weighing in on the report, Doug Duncan, Chief Economist at Fannie Mae, said, “The March jobs report suggests that the labor market remains solid overall.”“We expect the Fed to remain patient given a solid labor market and little evidence of upside inflation risks,” Duncan continued. “Meanwhile, employment in the residential construction sector expanded following a decline in February. This should allow builders to continue expanding supply at a gradual pace though labor shortages across the industry remain a concern. This report is directly in alignment with our economic and housing outlook for the year.”March’s 196,000 jobs added is a jump from February’s 20,000, though unemployment remained relatively the same, at 3.8 percent. Additionally, construction showed little change, up by around 16,000, though construction has increased by 246,000 over the past 12 months.realtor.com Chief Economist Danielle Hale commented on the job growth, noting the increase in purchasing power for homebuyers.“March’s jobs report painted a much brighter picture than a month ago, as 196,000 jobs were added, compared to February’s bleak 20,000 jobs and both January and February early reports were revised higher–meaning there were more jobs added those months than we originally believed. Job growth is slower than the average month in 2018, but appropriate since unemployment is at long-time lows,” said Hale.Hale continued, “Unemployment continued to hover at a 19-year low, at 3.8 percent, just a touch higher than the 49-year low of 3.5 percent. The combination of earnings growth of 3.2 percent and low mortgage rates has boosted home buyers’ purchasing power in the face of rising home prices, but affordability remains a challenge, especially for entry-level buyers. Still, as buyers grapple with their budgets, job and earnings growth and lower mortgage rates suggest sufficient demand for sellers this spring.”Find the report here. Previous: Blend Launches Digital Account Opening Tech Next: Looking Forward for Homebuyers Demand Propels Home Prices Upward 2 days ago Housing and Mortgage Experts Talk Employment in Daily Dose, Featured, Government, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Sign up for DS News Daily center_img Servicers Navigate the Post-Pandemic World 2 days ago 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. Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Employment Fannie Mae Jobs mortgage Realtor.com Employment Fannie Mae Jobs mortgage Realtor.com 2019-04-05 Seth Welborn Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 5, 2019 1,147 Views The Best Markets For Residential Property Investors 2 days agolast_img read more

Doherty urges government to follow through on microcredit commitments

first_img Twitter Doherty urges government to follow through on microcredit commitments Google+ NPHET ‘positive’ on easing restrictions – Donnelly Three factors driving Donegal housing market – Robinson Facebook WhatsApp WhatsApp Donegal South West Deputy Pearse Doherty is calling on the Government to fulfil its pledge to introduce a new personal microcredit scheme to assist people who have no or limited access to loan finance.The proposed scheme, which has yet to be formally introduced, was advocated in a report by the Social Finance Foundation and the Central Bank of Ireland, and a pilot scheme had been promised by September.It will be administered through credit unions, with Deputy Doherty, the Sinn Fein Finance Spokesperson, saying it’s important that this vital facility is made available to people who otherwise will be forced to approach moneylenders………….Audio Playerhttp://www.highlandradio.com/wp-content/uploads/2015/09/pearsemicroloan.mp300:0000:0000:00Use Up/Down Arrow keys to increase or decrease volume. Pinterest Homepage BannerNews Facebookcenter_img Help sought in search for missing 27 year old in Letterkenny News, Sport and Obituaries on Wednesday May 26th RELATED ARTICLESMORE FROM AUTHOR Google+ 448 new cases of Covid 19 reported today By admin – September 17, 2015 Pinterest Previous articleMc Garvey says delays in medical card reviews must be addressedNext articleHSE confirm two back wheels dislodged from ambulance travelling from Letterkenny to Galway admin Twitter Nine Til Noon Show – Listen back to Wednesday’s Programmelast_img read more

No refund for trainee pilots whose course collapsed in Florida

first_img PSNI and Gardai urged to investigate Adams’ claims he sheltered on-the-run suspect in Donegal By News Highland – July 20, 2012 Previous articleSF reject PSNI explanation for raid on Derry Mayor’s homeNext articleGAA – McGuinness & McCartan On Ulster Final News Highland No refund for trainee pilots whose course collapsed in Florida Man arrested in Derry on suspicion of drugs and criminal property offences released WhatsApp Pinterest HSE warns of ‘widespread cancellations’ of appointments next week Dail to vote later on extending emergency Covid powers RELATED ARTICLESMORE FROM AUTHOR Twitter Man arrested on suspicion of drugs and criminal property offences in Derrycenter_img Facebook Google+ Dail hears questions over design, funding and operation of Mica redress scheme Google+ Twitter Facebook WhatsApp News Pinterest Transport Minister Leo Varadkar says neither the Government not the Irish Aviation Authority will be able to compensate the 80 student pilots who were left stranded in Florida earlier this month, after their training was suspended.The students from the Pilot Training College in Waterford had paid up to 80,000 euro for their course at the Florida Institute of Technology Aviation. Two of them are from Donegal, one from Derry.The trainees met with Minister Varadkar and with the CEO of the Irish Aviation Authority today, to try and recoup some of their fees.The IAA says it will engage with the examiner appointed to the Pilot Training College in Waterford in an attempt to find out why the company ran into financial difficulty, and what happened to the fees handed over by the trainees.And Minister Varadkar says he is considering the introduction of a bonding scheme for pilot training courses in the future.last_img read more

Update – Alcorn nomination confirmed

first_imgNews Twitter RELATED ARTICLESMORE FROM AUTHOR Facebook Pinterest Google+ 75 positive cases of Covid confirmed in North Pinterest Update – Alcorn nomination confirmed Facebook Further drop in people receiving PUP in Donegal Google+center_img WhatsApp Twitter WhatsApp Fianna Fail Cllr David Alcorn has secured the council’s nomination for membership of the board of Udaras na Gaeltachta. With Sinn Fein support, he secured the nomination by 15 votes to 11, with two abstentions, including Mayor Cllr Frank Mc Brearty.Accepting the nomination, Cllr Alcorn paid tribute to Cllr Padraig O’Dochartaigh, saying he hopes that Cllr O’Dochartaigh gets a nomination from another source, possibly a direct nomination from Minister Mc Ginley.  He also paid tribute to outgoing board members Grainne Mc Geidigh of Sinn Fein and Senator Brian O’Domhnaill of Fianna Fail, the other Donegal representatives.In his address to members, Cllr O’Dochtartaigh said far from destroying Udaras, Minister Mc Ginley salvaged it when it was on its last legs and facing abolition. Gardai continue to investigate Kilmacrennan fire 365 additional cases of Covid-19 in Republic Main Evening News, Sport and Obituaries Tuesday May 25th Man arrested on suspicion of drugs and criminal property offences in Derry Previous articleAlcorn set to secure Udaras nominationNext article25 years today since the Strabane flood News Highland By News Highland – October 22, 2012 last_img read more

Business Watch to be extended across Donegal

first_img Twitter Pinterest Newsx Adverts Main Evening News, Sport and Obituaries Tuesday May 25th Twitter By News Highland – June 23, 2010 RELATED ARTICLESMORE FROM AUTHOR Pinterest Facebook Further drop in people receiving PUP in Donegal 365 additional cases of Covid-19 in Republic Google+center_img WhatsApp Gardai continue to investigate Kilmacrennan fire Previous articleNew SF member coopted onto Buncrana Town CouncilNext articleBuncrana will connect to Project Kelvin – Tedstone News Highland The Business Watch security model which has been running in Letterkenny for a number of years is to be extended into other areas of Donegal. Plans to operate the model in Gweedore are at an advanced stage, with the Finn Valley also being considered as a venue.Meanwhile, Gardai and Letterkenny Chamber will host a Summer Crime Prevention seminar at the CoLab building on the Letterkenny Institute of Technology campus at 7 o’clock this evening.Crime Prevention Officer Sergeant Paul Wallace says it’s important that all businesses review their security, and that’s an important element of the Business Watch model……..[podcast]http://www.highlandradio.com/wp-content/uploads/2010/06/wally3pm.mp3[/podcast] Man arrested on suspicion of drugs and criminal property offences in Derry Business Watch to be extended across Donegal WhatsApp Facebook 75 positive cases of Covid confirmed in North Google+last_img read more