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White Paper Authors Warn of the Cost of Reprivatizing GSEs

first_img Conservatorship Fannie Mae FHFA Freddie Mac Moody’s Analytics Urban Institute 2015-05-18 Brian Honea  Print This Post White Paper Authors Warn of the Cost of Reprivatizing GSEs Sign up for DS News Daily May 18, 2015 819 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. Previous: Rising Rents Not Motivating Consumers to Buy Homes, Research Shows Next: DS News Webcast: Tuesday 5/19/2015 Share Save Tagged with: Conservatorship Fannie Mae FHFA Freddie Mac Moody’s Analytics Urban Institute 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 Related Articles About Author: Brian Honeacenter_img While many politicians and housing industry stakeholders have called to end the Federal Housing Finance Agency’s conservatorship of Fannie Mae and Freddie Mac recently, a recent white paper prepared by Moody’s Analytics and the Urban Institute suggests that might not be such a great idea.In the paper, titled Privatizing Fannie and Freddie: Be Careful What You Ask For, authors Jim Parrott and Mark Zandi examined the economic implications of releasing the GSEs from the FHFA’s conservatorship and back into the private mortgage market, a discussion they say often takes for granted that the mortgage market will simply revert to its pre-crisis state. The authors contend, however, that economic conditions have changed in the last eight years or so that would “significantly affect how Fannie and Freddie would function as reprivatized institutions.”First, upon their release from the conservatorship, the authors say the Financial Stability Oversight Council would almost certain designate Fannie Mae and Freddie Mac as systemically important financial institutions, commonly known as “too big to fail.” Such a move would require a 10 percent capitalization to withstand stress scenarios as severe as our recent economic recession.Second, Fannie Mae and Freddie Mac would owe the government for their taxpayer bailout of $187.5 billion in 2008, at which time the FHFA took the GSEs into conservatorship. Under the current Preferred Stock Purchase Agreements (PSPAs), the GSEs were initially required to pay a quarterly dividend to the Treasury Department equal to 10 percent of Treasury’s investment per year, annualized; when Treasury feared the GSEs would not be able to pay the 10 percent, the PSPAs were amended in 2012 and the GSEs were required to pay all of their profits to Treasury.If Fannie Mae and Freddie Mac were to be reprivatized, the authors estimate they would need to increase their capitalization by at least 2 percent in order to meet that 10 percent capitalization requirement. Currently their line of credit with Treasury would provide about 5 percent capitalization and the current guarantee fee of 63 basis points would provide about 3 percent; they would need to increase their G-fees by about 27 basis points to raise the additional 2 percent capital.The authors estimate that in the lowest-cost scenario, mortgage rates would go up by an average of 43 basis points, and in the highest-cost scenario, they would go up by an average of 97 basis points – 27 basis points for capital, 28 basis points for the commitment fee, and 42 basis points for the dividend. A number of factors could move this range of 43 basis points to 97 basis points up or down, including a change from the profit sweep to something other than 10 percent that would move the cost accordingly. If the GSEs were allowed to count future G-fees toward their capital, it would lower the cost; if the GSEs became subject to new laws and regulations from which they are currently exempt, it would drive the cost up.”The debate over whether to recapitalize and release the GSEs into the private market is often framed as a choice of whether or not to return to a prior period in lending,” the authors wrote. “For all its shortcomings, the argument goes, at least we know what to expect in the cost and availability of mortgage credit. But this is a misconception. In releasing the GSEs into the private market again, we would release them into a very different regulatory and economic environment, and they would respond, not surprisingly, by charging very different mortgage rates.” Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 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 Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / White Paper Authors Warn of the Cost of Reprivatizing GSEs in Daily Dose, Featured, Government, News Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

Mortgage Bankers Believe Real Estate Market Will Favor Sellers in 2016

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Altisource Portfolio Solutions Lenders One Mortgage Bankers Sellers Market  Print This Post Demand Propels Home Prices Upward 2 days ago Previous: More Than Half of Current HELOCs Facing Payment Shocks Over the Next Two Years Next: Collingwood Group Hires Former Freddie Mac Executive About Author: Xhevrije West Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Altisource Portfolio Solutions Lenders One Mortgage Bankers Sellers Market 2015-09-08 Brian Honea The Best Markets For Residential Property Investors 2 days ago Mortgage Bankers Believe Real Estate Market Will Favor Sellers in 2016 Share Save Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. center_img Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Mortgage Bankers Believe Real Estate Market Will Favor Sellers in 2016 in Daily Dose, Featured, News The Week Ahead: Nearing the Forbearance Exit 2 days ago September 8, 2015 1,173 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Although the rate hike is expected to occur at some point before the end of 2015, mortgage bankers indicate that the real estate market in 2016 will favor sellers.Lenders One, a subsidiary of Altisource Portfolio Solutions S.A., reported Tuesday, 60 percent of the bank’s members noted that 2016 is expected to be a sellers’ market. In addition, 89 percent of member are confident that the market could survive a possible interest rate increase this fall.Mortgage bankers are also watchful of other factors that could affect the industry’s growth such as: innovation in banks’ menu of mortgage products (26 percent), continued increases in home values (22 percent), and lowering acceptable down payment amounts (10 percent).“Mortgage bankers are generally optimistic about 2016 and believe that a possible interest rate hike is not going to create a major hurdle for continued industry growth next year,” said Daniel Goldman, interim CEO of Lenders One. “Respondents also expressed positive views about TILA-RESPA preparedness, another big mortgage industry concern, in part because the extension of the implementation deadline has afforded mortgage bankers more time to get technology and processes ready to be compliant.”Lenders One also found that mortgage bankers’ sentiment showed that they are prepared for TILA-RESPA Integrated Disclosure (TRID) rule, which will go into effect on October 3, 2015. However, the bankers are mixed on impact of the rule’s delays.“Mortgage bankers are generally optimistic about 2016 and believe that a possible interest rate hike is not going to create a major hurdle for continued industry growth next year.”Just a couple of months before the TRID rule goes into effect, 64 percent of mortgage bankers said they feel knowledgeable of the rule and have the right tools to adjust to the changes. Only 27 percent indicated that they were somewhat ready, while only 9 percent stated that they do not have the tools or knowledge to adapt to the new rules.Nearly half of the survey respondents said that adjusting to the new TRID rules would be difficult when questioned if the implementation delay will make adjusting to the new TILA-RESPA rules more or less difficult for lenders. However, 47 percent felt adjusting to the new rules will be the same, with or without the delay.“Preparation for the TILA-RESPA integrated disclosure rule requirements has dominated industry conversations for several months, and we’ve been working closely with our members to provide services and offerings that can help them address these changes,” Goldman said. “Fortunately, the survey results show that at this point the industry feels relatively well-prepared for the implementation of these new regulations.” The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Subscribelast_img read more

Will Existing-Home Sales Bounce Back from the Recent Disappointment?

first_img  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Market Studies, News Related Articles About Author: Xhevrije West The National Association of Realtors (NAR) reported in December that existing-home sales dropped off in November to an annual rate of about 4.76 million, the slowest pace in 19 months.One of the major drivers of November’s dropoff in the pace of existing-home sales is likely the implementation of the “Know Before You Owe” mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule, which went into effect on October 3.NAR Chief Economist Lawrence Yun said the longer closing times may be delaying transactions until the following month, making the slowdown in existing-home sales for November temporary.“It’s possible the longer timeframes pushed a latter portion of would-be November transactions into December,” says Yun. “As long as closing timeframes don’t rise even further, it’s likely more sales will register to this month’s total, and November’s large dip will be more of an outlier.”Auction.com noted that this decline was an unexpected blow in relation to their last estimate of a more moderate drop for November in the range of 5.2 to 5.54 million units.Auction.com Chief Economist Peter Muoio provided fair warning that the drop in existing-home sales should not be taken out of context, noting that a healthy job market, wage gains, improved consumer confidence, and–at least through the end of 2015–low interest rates are still prevalent and typically lead to home sales.“One potential cause for the November drop-off is the introduction of the CFPB’s ‘Know Before You Owe’ mortgage initiative, which could have created processing delays and pushed closings out a month or two. If this is the case, we could end up seeing home sales bounce back from the November low by early 2016,” Muoio explained.However, Auction.com points out that other factors such as low inventory and affordability concerns are contributing to the slowdown in home sales and could cause problems moving forward in 2016.“Inventory of homes for sale continues to be extraordinarily low, since a very large number of homeowners are in negative or near-negative equity positions,” said Rick Sharga, Auction.com EVP. “What could pose more of an issue in 2016 is the combination of potentially higher interest rates and rising home prices making homes less affordable for potential buyers.”Auction.com’s report also showed that home prices continue to rise after four consecutive month-over-month decreases from the peak in the summer season. The Nowcast predicts that existing-home sale prices will fall between $212,156 and $234,488 in the month of December with a targeted price of $223,322. This will be a 7.3 percent year-over-year increase.Last month, the NAR reported a 6.3 percent year-over-year increase in median existing home prices in November to $220,300. This number was well within the range of $214,057 and $236,589 that Auction.com predicted last month. Auction.com Existing Home Sales Housing Market 2016-01-05 Brian Honea Home / Daily Dose / Will Existing-Home Sales Bounce Back from the Recent Disappointment? Demand Propels Home Prices Upward 2 days ago Previous: OCC Lets JPMorgan Chase and EverBank Off the Hook, Sort Of Next: Freddie Mac Resumes Risk Sharing in 2016 Where Last Year Left Off The Best Markets For Residential Property Investors 2 days ago Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Servicers Navigate the Post-Pandemic World 2 days ago Share Save Tagged with: Auction.com Existing Home Sales Housing Market The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago January 5, 2016 1,203 Views Existing-home sales suffered a major blow in November 2015 with substantial month-over-month dropoff much larger than the expected seasonal decline. Some economists believe this was just a temporary setback and that existing-home sales will make a huge comeback in 2016 from November’s disappointment.Auction.com’s Residential Real Estate Nowcast predicts that existing-home sales for the month of December will fall between seasonally adjusted annual rates of 4.8 and 5.11 million annual sales, with a targeted number of 4.95 million.This will be a 4.1 percent increase from November’s disappointing performance. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Will Existing-Home Sales Bounce Back from the Recent Disappointment? Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribelast_img read more

Survey: Financial Illiteracy is Rampant Among College Students

first_img Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Survey: Financial Illiteracy is Rampant Among College Students The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Subscribe Governmental Measures Target Expanded Access to Affordable Housing 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 About Author: Brian Honea Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Previous: OCC: Fintechs Will Not Replace Banks Next: The Week Ahead: Economic Picture is Murky 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 Consumer Credit Credit Score 2016-03-18 Brian Honea March 18, 2016 1,613 Views Tagged with: Consumer Credit Credit Score Home / Daily Dose / Survey: Financial Illiteracy is Rampant Among College Students While building credit and maintaining a good credit history remains a necessary tool for Americans in order to provide financial opportunities such as obtaining a loan for a mortgage or to make other large purchases, recent studies revealed that many Americans do not have any credit and in many cases do not even know what a credit score is.In a recent survey of 668 Bay Area college students containing questions about consumer credit and how it effects financial decisions conducted by LendEDU, the results revealed that 59.3 percent of respondents could not produce a broad definition of a credit score.“Our survey wasn’t limited only to individuals with student debt,” LendEDU CEO Nate Matherson said. “Unfortunately, we found that the majority of current college students know very little about building and maintaining consumer credit. Our results are once again startling, disturbing, and showcase the appalling level of financial illiteracy among our country’s brightest minds.”The results of the survey were in line with the findings of a study released last May by the Consumer Financial Protection Bureau (CFPB) which found that approximately 26 million American adults (about 10 percent) were “credit invisible,” or in other words, they do not have a credit history or not enough of a credit history to produce a score with any of the three nationwide consumer reporting agencies (Equifax, Experian, or Transunion).”A limited credit history can create real barriers for consumers looking to access the credit that is often so essential to meaningful opportunity—to get an education, start a business, or buy a house,” CFPB Director Richard Cordray said. “Further, some of the most economically vulnerable consumers are more likely to be credit invisible.”Despite the importance of building and maintaining a good credit history, the Council of Economic Education (CEE) stated in its 2016 annual report that only 17 states require high school students to take a course in personal finance. There are no such requirements in California, the location of the LendEDU survey.The survey showed that 42.5 percent of respondents did not believe that student debt was important in determining a credit score—and this despite the fact that seven out of every 10 college graduates leave campus with an average of $30,000 in student loan debt. Also, 42.4 percent of respondents could not name even one way to improve a credit score. Nearly half (45.5 percent) of respondents could not identify even one factor used to determine a credit score; 65 percent said they did not have a credit card in their own name; and 72 percent of the respondents who did have a credit card said they did not know their credit score.Click here to see the full results of the LendEDU survey. Demand Propels Home Prices Upward 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News  Print This Post The Best Markets For Residential Property Investors 2 days agolast_img read more

Breaking Down Blight

first_imgHome / Daily Dose / Breaking Down Blight The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Breaking Down Blight The Best Markets For Residential Property Investors 2 days ago Editors’ Note: This print feature appeared in the February issue of DS News.Almost a decade has passed since the housing bubble burst, throwing the mortgage services industry and neighborhoods across the country into a pitched battle with blight. Recovery has been excruciatingly slow. Outdated rules and a public that has little understanding of the true costs associated with neighborhood blight contribute to a status-quo approach that has hindered the industry for decades.Our residents and communities have borne the burdens that stem from a barely effective approach to combatting blight. But in 2016 and the early days of this year, the industry saw gradual movement that offers improved expectations for the days ahead. Indeed, a confluence of change, innovation, and enhanced understanding of the widespread costs of blight have propelled the industry forward in efforts to decrease the number of zombie properties plaguing neighborhoods and to begin employing new technology in the form of polycarbonate clearboarding to secure vacant and abandoned properties. Such progress offers reason for optimism that, finally, we will be able to attack community blight with the appropriate tools. Years from now, the industry will recognize 2017 as a pivotal year in the fight against blight. Pre-approving Polycarbonate and the Plywood ProblemOne of the most significant changes that built positive momentum in the fight against blight occurred in early November 2016, when Fannie Mae made the game-changing decision to pre-approve the use of polycarbonate clearboarding on pre-foreclosure properties. The decision marked the first time a GSE had expanded its reimbursement policies to include a 21st-century technology that is far superior to plywood. Polycarbonate clearboarding resembles glass, yet it is virtually unbreakable. It can have a tremendous impact on conveying properties more quickly and in a more stable and marketable condition, especially when compared with plywood, an outdated and unattractive material used on vacant and abandoned property for decades.Plywood announces that a building is vacant and abandoned, encouraging vandals and adverse occupants to break in. These people can become a threat to first responders, who cannot see through plywood to ascertain whether a property is actually vacant. Initially cheaper than polycarbonate clearboarding, plywood is easily broken into, deteriorates from weather conditions, and often has to be replaced three times or more.Fannie Mae’s decision will likely be a catalyst that prompts the other GSEs and the industry in general to follow suit in 2017 and approve innovations that allow for the use of polycarbonate clearboarding. The implications of this change will be staggering even if only Fannie Mae participates; if others follow suit, the impacts will be exponentially more significant. Consider that 1.3 million homes in America remain vacant. The national foreclosure rate is 1 in every 1,526 housing units, according to RealtyTrac.As industry leaders embrace new technology, it will be possible to replace plywood with polycarbonate clearboarding, changing practically overnight the appearance of some of the most distressed neighborhoods across the country. Fannie Mae’s pre-approval policy expansion takes effect this month.Gaining Legislative SupportLegislators from states and cities across the country are among those closest to witnessing the damage that unsecured and unsightly zombie properties exact on neighborhoods. Properties with plywood on them essentially scream that the neighborhood is in distress.Ohio is leading all states in its proactive approach to attacking community blight. First, it passed the most progressive fast-track foreclosure law in the country, which in effect can shorten the length of time a property sits vacant during a foreclosure process from two years or more to just six months. This greatly reduces the opportunity for adverse occupants and the chances of non-surchargeable damage.However, even more noteworthy is the measure Ohio Gov. John Kasich recently signed into law that bans plywood on vacant and abandoned properties. This bold law is the first of its kind in the United States and will have far-reaching implications. Most immediately, the law—which takes effect in March—will lead to far wider use of polycarbonate clearboarding in Ohio, which has the eighth-highest foreclosure rate in the nation, according to RealtyTrac.This significant advancement in state government’s approach to eliminating plywood and fighting blight also should prove to be a model for states across the country. Similarly, though not as wide-reaching, cities such as Phoenix and Coachella, California, are embracing the use of clearboarding to improve the appearance and security of their struggling neighborhoods. Phoenix was well ahead of the curve and, in 2015, passed an ordinance requiring all window and door openings visible from the street to be secured with polycarbonate clearboarding if the structure had been vacant and abandoned for more than 90 days. In November, New York City lawmakers began review on a bill that would prohibit the use of plywood to secure vacant and abandoned buildings. Lawmakers clearly understood the simple yet direct connection between plywood and blight: “This bill would prohibit the use of plywood in sealing openings in vacant buildings,” they wrote when filing the bill. “This prohibition is intended to prevent blight.”This bill would set a foundational example at the local level for eliminating plywood in communities of all sizes. New York City’s example would accelerate advocacy efforts for a progressive approach to blight remediation at all levels of government.The True Cost of ForeclosureRecently, Aaron Klein (no relation to the author) released a groundbreaking study quantifying for the first time the substantial and numerous impacts foreclosures and vacant and abandoned properties have on homeowners and their communities.Even based on conservative estimates, the typical foreclosed home imposes costs of more than $170,000, he wrote in his paper, “Understanding the True Costs of Abandoned Properties: How Maintenance Can Make a Difference.”The former U.S. Treasury Department Deputy Assistant Secretary for Economic Policy examines three main areas in which foreclosures and vacant and abandoned properties adversely impact homeowners and their communities: property values, crime, and increased burden on city resources. Among the findings Aaron Klein cites:The foreclosure of a home will cause a loss of value of at least $130,000 for the home and its neighborhood.Over half the total cost of a foreclosure’s impact on neighboring properties comes from the fact that the property is abandoned.Vacant properties lead to increases in violent crime with substantial costs: $14,000 per vacant property per year in increased crime, translating into $795 million nationwide for all vacant properties.The impact of vacancy on crime increases as the property stays vacant for longer periods, likely plateauing at between 12 and 18 months.Vacant buildings are major fire hazards; vacant residential buildings account for one of every 14 residential building fires in America.Community Blight Solutions of Cleveland commissioned this study to help decision makers across the country better understand blight’s true burdens.Klein concludes that how well a vacant home is secured can have a substantial impact on the total costs associated with that status.In a second study and paper to be released this month, Klein will examine the problems associated with plywood. His data will add to the growing evidence that plywood must be eliminated from vacant and abandoned properties and polycarbonate clearboarding should be used in its place.The Year of ClearboardingFor the first time in decades, the housing industry—and mortgage field services in particular—are now armed with the tools they need to seriously and effectively attack community blight. For too long, plywood has served as the standard material for boarding vacant and abandoned properties. It has become the ugly and stigmatizing symbol of a community in despair.Our laws and policies are now leaning toward a more proactive solution. We are beginning to replace outdated, unsightly, and inefficient plywood with modern-day technology in the form of polycarbonate clearboarding, but we have far to go. Advocacy efforts must continue at the national, state, and local levels. Progressive and effective policies must be adopted. It is clear that 2017 will be the year of polycarbonate clearboarding. Forward-thinking leaders in government and industry are embracing a more effective solution. Demand Propels Home Prices Upward 2 days ago About Author: Robert Klein Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 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 Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Headlines, News Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Share Save Related Articles Robert Klein is the chairman and founder of Community Blight Solutions. He is also the founder and chairman of Safeguard Properties, which grew from a handful of employees in 1990 into the largest field services company in the industry. 2017-02-06 Robert Klein February 6, 2017 1,770 Views Demand Propels Home Prices Upward 2 days ago Previous: Mortgage Law Expert: CFPB ‘Hangs in the Balance’ Next: RBS Settlement Delayed Thanks to DoJ Shakeuplast_img read more

Buffett: Wells Fargo CEO Has My Faith

first_img Tuesday morning, Wells Fargo President and CEO Tim Sloan was in the hot seat at the U.S. Senate Committee on Banking, Housing, and Urban Affairs full committee hearing titled “Wells Fargo: One Year Later.” Despite calls for his stepping down, Sloan still has Berkshire Hathaway Chairman and CEO Warren Buffett in his corner.“Tim Sloan has my faith,” said Buffet on CNBC’s Squawk Box. “If you get [a problem that is] systemic, you’ve got a big problem. And once you find out about it, you’ve got to get it right, get it fast, get it out, get it over—and getting it right is hard.”According to Senator John Tester (D-Montana), since the first report of unauthorized accounts, Wells Fargo’s banking practices have affected 4.3 million customers or four times the population of Montana—something that Senator Tim Scott (D-South Carolina) said the “entire banking committee is irritated by” due to the continued discovery of accounts over time.”If we’re doing this again six months from now, it’s not going to be good,” Scott said.Sloan explained that Wells Fargo had an insensitive plan that drove inappropriate sales culture, but they now have a new plan that, based on feedback, is acceptable to employees. In fact, of the 17,000 new hires, Sloan estimated that 10 percent of those are rehires that either left due to a dislike of the sales culture or terminated because they didn’t meet sales quotas.Many senators urged that the change in culture cannot just be at the retail banking locations; it needs to go from the executive level down. Because of that reason, Senator Elizabeth Warren called for the removal of Sloan and every member of the Board that was involved during the “height of cheating customers.””At best you were incompetent, at worst you were complicit,” Warren said. “Either way, you should be fired.”Warren highlighted quotes from Sloan during various investor calls between 2011 and 2014 that led her to believe that Sloan was part of the company culture that pressed employees to open the unauthorized accounts.”I’ve read through them, and on these calls no one, not even John Stumpf, who was the CEO at the time, bragged more about Wells Fargo’s ability and commitment to open new accounts for existing customers,” Warren said before reading off a quote from Sloan during one of the calls which said, “I can’t wait to get a credit card of every one of our creditworthy customers wallets.”Sloan later urged that as a banking business, one of the products they provide and that he is proud of is the credit card—and he isn’t embarrassed about that.“I would agree that in our community bank we had fundamental problems that created a broken culture,” Sloan said. “In the rest of the company, it wasn’t a broken culture.”To see the full hearing, click here.  Print This Post The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, Headlines, News Elizabeth Warren Tim Sloan Wells Fargo 2017-10-03 Brianna Gilpin Tagged with: Elizabeth Warren Tim Sloan Wells Fargo About Author: Brianna Gilpin Demand Propels Home Prices Upward 2 days ago Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Mortgage-Free Living Next: Charting the Path Forward Data Provider Black Knight to Acquire Top of Mind 2 days ago Buffett: Wells Fargo CEO Has My Faith Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Subscribe October 3, 2017 1,619 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Home / Daily Dose / Buffett: Wells Fargo CEO Has My Faith Demand Propels Home Prices Upward 2 days agolast_img read more

The Right Path for FHA?

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The latest American Enterprises Institute Housing Market Indicators released its data on October 2018 with a focus on the National Mortgage Risk Index. The report, released on January 28, includes data on mortgage risk, house price appreciation, and home sales.“FHA’s and the Bureau of Consumer Financial Protection’s pro-cyclical policies are continuing to drive home prices higher for entry-level buyers and are exposing buyers to an unsustainable home price boom,” noted Edward Pinto, Codirector of the AEI’s Center on Housing Markets and Finance. “As these policies since late-2012 have needlessly driven up low price tier homes by an additional $23,000, it is time both took counter-cyclical steps to protect homebuyers,” he added.The report found that mortgage risk jumped in October with all indices setting new series’ highs for the month. The composite Purchase National Mortgage Risk Index (NMRI) recorded an increase of 0.4 percentage points from Oct. 2017. The Federal Housing Administration (FHA) index set a new series’ high at 28.2 percent. Refi NMRI  also set a new series’ high, primarily due to a higher Cash-Out Refi NMRI, it indicated.According to AEI data, the higher NMRI indicates that agencies continue to increase leverage to maintain levels of mortgage activity and in furtherance of their “affordable housing” mission. The report noted that FHA continues to loosen and Fannie’s purchase risk index in Oct. 2018 at 1.4 percentage points outpaced that of Freddie’s. The report also pointed out that over the last 3 years, a shift towards higher DTIs has primarily driven the NMRI higher.“Reports of the end of current housing boom are exaggerated,” said Tobias Peter, Senior Research Analyst at AEI’s Center on Housing Markets and Finance. “Inventories remain mostly tight, especially for entry-level homes, access to credit continues to be expanding, especially for first-time buyers, and mortgage rates have recently fallen below 4.5 percent again. All this points to a continuation of the boom at lower price points,” he added.Shedding light on FHA lending, the report found that FHA’s credit box is wide and therefore credit for entry-level buyers is not tight. FHA continues to add high-risk borrowers with their risk index climbing through risk layering. Compared to 2017, the agency purchase volume declined this October. A decline of 3.9 percent was recorded in purchase volume by count compared to 2017—a rise in volume from 37 percent in October 2013. The report attributes the decline to the increase in mortgage rate to over 4.5 percent earlier in the year.Per AEI Housing Market Indicators, maintaining purchase volume continues to be reliant on further agency credit easing— seen as needed to offset headwinds from gradually rising interest rates as a result of a slightly less accommodative monetary policy, and rapid home price increases.Read the full report here. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Market Studies, News, Servicing Related Articles AEI Edward Pinto Home Prices Mortgage Risks Tobias Peter 2019-01-28 Donna Joseph Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Donna Joseph Tagged with: AEI Edward Pinto Home Prices Mortgage Risks Tobias Peter Demand Propels Home Prices Upward 2 days agocenter_img January 28, 2019 3,280 Views The Best Markets For Residential Property Investors 2 days ago Previous: Spotlight on Default Servicing Law Firms Next: The State of Servicing Home / Daily Dose / The Right Path for FHA? The Right Path for FHA?  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] last_img read more

The Profitability of House Flipping

first_img April 10, 2019 1,296 Views Previous: Megabank CEOs Meet With Congress Next: Fitch Examines Wells Fargo’s Servicing Improvements  Print This Post House flipping is on the rise, according to a recent report. Data from a CoreLogic special report indicates the house flipping rate has increased year over year for 12 consecutive quarters, and on a seasonally adjusted basis is now at the highest level since CoreLogic started keeping track in 2002, at 10.9 percent of home sales as of Q4 2018.CoreLogic’s report noted that flipping rates varied from metro to metro. The report found that the highest flipping rates could be found in the Sunbelt: eight of the top 10 metros with the highest flipping rate were found in this area of the country, including Birmingham, Memphis, and Tampa leading the pack with rates of 16.5, 16.2, and 15.1 percent, respectively.The Rustbelt held the lowest flipping rate, including three Connecticut metros: Bridgeport, Hartford, and New Haven. However, the report found two Sunbelt metros with the lowest flipping rates, Texas cities Austin and Houston.“In addition to flipping rates, we also estimate economic returns to flipping,” said CoreLogic Deputy Chief Economist Ralph McLaughlin. According to McLaughlin, returns for flippers have risen significantly, up to a median of around 40 percent after 2007. Additionally, he notes that flippers are shifting away from price speculation and toward adding value to properties.Returns are particularly high for older housing. CoreLogic found that returns are highest in Detroit, Philadelphia, and Pittsburgh with returns of 95.9, 92.8, and 75 percent, while areas with newer housing stock, such as Colorado, Arkansas, Missouri, Texas, Arizona, and Tennessee, Florida, and Nevada, seen lower returns ranging between 8.4 and 10.8 percent.“Does this mean that home flippers are reaping more net profits in these older markets? Not so much,” said McLaughlin. “While gross economic returns are highest in places with older flips, they don’t capture the amount of money that flippers invested into the flip. On the contrary, flips undertaken on older homes likely require more capital to bring the home up to market standard than newer homes. Such updates mile include costly improvements to electrical systems, plumbing, foundations, and roofing. What this does tell us is that flippers are likely to reap substantial discounts when buying properties with such deferred maintenance.”Find the report here. Subscribe in Daily Dose, Featured, Market Studies, News 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. Related Articles The Profitability of House Flipping The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily About Author: Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: CoreLogic House Flipping price sale Data Provider Black Knight to Acquire Top of Mind 2 days ago CoreLogic House Flipping price sale 2019-04-10 Seth Welborn The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / The Profitability of House Flippinglast_img read more

Public hearing into proposed Glenties wind farm underway

first_img An Bord Pleanála is hosting a public hearing in to a proposed wind farm project near Glenties.Straboy Wind Energy has been granted planning permission by Donegal County Council to erect 22 wind turbines over a 474 hectare site covering six townlands near Glenties with 21 conditions attached.15 third parties objections to the permission have been lodged with the board along with 64 observations.The hearing is expected to continue into next week. Google+ By News Highland – October 16, 2012 Pinterest WhatsApp Help sought in search for missing 27 year old in Letterkenny RELATED ARTICLESMORE FROM AUTHOR Public hearing into proposed Glenties wind farm underway News Twitter Twitter Facebookcenter_img Three factors driving Donegal housing market – Robinson 448 new cases of Covid 19 reported today Previous articleGovernment reveals local government reform plansNext articleCouncil admits sending out threatening household charge letters in error News Highland Calls for maternity restrictions to be lifted at LUH Pinterest Guidelines for reopening of hospitality sector published NPHET ‘positive’ on easing restrictions – Donnelly WhatsApp Facebook Google+last_img read more

Residents in Donegal least compliant when it comes to Household charge

first_img Pinterest Pinterest News Facebook WhatsApp Twitter By News Highland – December 4, 2012 Need for issues with Mica redress scheme to be addressed raised in Seanad also Residents in Donegal are the least compliant in the country when it comes to paying the household charge – with just 55% paying so far.But those in a part of South Dublin are the most compliant when it comes to paying the household charge.85 percent of those living in Dun Laoghaire Rathdown local authority area have now paid the charge.1.1 million homes have now been registered – still well shy of the 1.6 million homes estimated by the government.Junior Environment Minister Fergus O’Dowd has refused to say in the Dáil if people will have to pay the household charge in January and the property charge from July:[podcast]http://www.highlandradio.com/wp-content/uploads/2012/12/15ferg1.mp3[/podcast] Twitter WhatsApp Almost 10,000 appointments cancelled in Saolta Hospital Group this week center_img LUH system challenged by however, work to reduce risk to patients ongoing – Dr Hamilton Calls for maternity restrictions to be lifted at LUH Previous articleCouncil passes SF motion calling for end to student grant cutsNext articleMayor to return to US following renewed debate on travel News Highland Facebook Residents in Donegal least compliant when it comes to Household charge Guidelines for reopening of hospitality sector published Google+ RELATED ARTICLESMORE FROM AUTHOR Business Matters Ep 45 – Boyd Robinson, Annette Houston & Michael Margey Google+last_img read more