Clinton’s campaign released an ad with audio that the presumptive Republican nominee recorded in 2006 for his now-defunct Trump University venture. Trump, a billionaire real estate developer, in remarks on a “bubble burst,” said: “I sort of hope that happens because then people like me would go in and buy” property and “make a lot of money.”
But the Collingwood Group Chairman Tim Rood told Fox Business Network’s Neil Cavuto it’s much ado about nothing:
Watch it here: >>>>>https://youtu.be/ZI1gqro5iXc
Senator Warren, who is a favorite of financial reformers, says Trump’s 2006 comments amounted to rooting for “people to get thrown out on the street.”
“The rest of us were horrified by the 2008 financial crisis,” Warren said in the comments. “But Donald Trump was drooling over the idea of a housing meltdown – because it meant he could buy up a bunch more property on the cheap.”
NYT: Fewer Americans Strike Out for New Jobs, Crimping the Housing Recovery
By covered wagon and jetliner, from East Coast to West, Rust Belt to Sun Belt, Americans’ propensity to be on the move – to new jobs and new places – has historically provided the economy with a critical dose of oomph.
But as fewer and fewer Americans are loading up the moving van in search of opportunity, that advantage may be slipping away. In recent years, economists have become increasingly worried that a slide in job turnover and relocation rates is undermining the economy’s dynamism, damping productivity and wages while making it more difficult for sidelined workers to find their way back into the labor force.
“It’s possible that one reason people aren’t changing jobs is because they’ve all found jobs that are great for them and they’re happy,” Betsey Stevenson, an economist at the University of Michigan and a former member of President Obama’s Council of Economic Advisers, said. “But the other possibility is that people stay in jobs that aren’t as good for them because they’re terrified of changing, and that’s bad for the overall economy.”
Staying put can mean that workers are not moving to jobs where they would be more productive. At the same time, many are forgoing the raises and ascents on the career ladder that often come with a job switch. Fewer openings can also have a ripple effect, shrinking the bargaining power of workers in general, making it tougher to ask for a bump up in pay.
“It also stinks if you lose your job,” Ms. Stevenson said of reduced turnover. “It’s like a game of musical chairs where only half the people get up.”
read more: http://www.nytimes.com/2016/05/25/business/economy/fewer-workers-choose-to-move-to-new-pastures.html?smprod=nytcore-ipad&smid=nytcore-ipad-share&_r=0
National Mortgage News: Mortgage for Millennials with High Student Debt
The extent to which student debt is keeping Millennials from buying homes is debatable. But for high-earning young professionals who are saddled with such loans, a Florida investment advisor says he has devised a path to homeownership.
In the next six to eight weeks, John Burkey will launch the BurkeyLoan, which combines borrowers’ student loans and their mortgages.
“Basically,” he said, “they will be refinancing their school loans into their mortgages.”
Initially, BurkeyLoans will be aimed at college graduates with “top-tier work and academic profiles” who seek jumbo mortgages in the $425,000 to $600,000 range. But by year’s end, Burkey said, the new mortgage product should become available for those needing financing for houses in the high $200,000s.
read more: http://www.nationalmortgagenews.com/news/origination/a-mortgage-for-millennials-with-big-student-debts-1078714-1.html
NerdWallet: Millennials and Homebuying: Myths and Reality
A common narrative in our age is that millennials are breaking with the habits of their parents and grandparents when it comes to homebuying. Millennials, the story goes, are renting longer, living with their parents, and are saddled with student loan debt. In short, it would seem they aren’t interested in homeownership.
But a new NerdWallet analysis that examined a number of surveys and data from government agencies and private organizations found many of these perceptions to be false. Our research showed that a majority of millennials would prefer owning to renting, but they appear to be postponing homeownership because of real and perceived difficulties in affording it. In fact, our analysis found that millennials, those born from 1981 to 1997, look upon owning a home just as favorably as previous generations.
- U.S. millennials total 66 million individuals and 24 million independent households .
- The median age for first-time homebuyers has remained virtually unchanged for the past 40 years: In 2015 it was 31 years old, compared with 30.6 in 1970-74 .
- Two-thirds of millennials haven’t reached that homebuying age of 31, and 22% are under 25 years old .
- Millennials are renting for a median of six years before buying, compared with a median of five years for renters in 1980 .
- Millennials are expected to form 20 million new households by 2025 .
- The median income for a millennial older than 25 is $38,220 .
read more: https://www.nerdwallet.com/blog/mortgages/millennials-and-homebuying/?sf26518265=1
Bloomberg: Why Lease When You Can Own? Rooftop Solar Facing Tough Question
It’s tough to argue with free. That’s why the no-money-down solar lease became the most popular choice for U.S. rooftop power.
Now, though, the equation is changing. Falling costs are making it easier for consumers to buy solar systems outright, and banks and solar installers are promoting loans with no upfront payments. That’s a threat to companies such as SolarCity Corp., Sunrun Inc. and Vivint Solar Inc., which built their businesses on people signing decades-long contracts.
Workers secure solar panels to a rooftop during a SolarCity Corp. residential installation.
Workers secure solar panels to a rooftop during a SolarCity Corp. residential installation. Photographer: Sergio Flores/Bloomberg
Installation growth is slowing for the big three U.S. rooftop solar installers, and GTM Research, an industry consultant, is forecasting the percentage of consumers buying rather than leasing residential systems will expand to 45 percent this year, from 38 percent in 2014. Shares in all three companies have plunged more than 40 percent this year, for a variety of reasons including a failed acquisition bid for Vivint and questions about SolarCity’s strategy.
“Leasing was the major game but that’s changing quickly,” said Patrick Jobin, an analyst at Credit Suisse Group AG. “Consumers are starting to realize there are better options.”
read more: http://www.bloomberg.com/news/articles/2016-05-24/why-lease-when-you-can-own-the-tough-question-facing-solarcity
WSJ: Wells Fargo Offers Low Downpayment Loan with FHA Backing
Wells Fargo iss rolling out a new mortgage for borrowers making minimal down payments, an offering that could allow the bank to step back significantly from a controversial Federal Housing Administration program.
The move comes as most of the country’s main banks exit from any substantial role making loans guaranteed by the FHA. The agency insures mortgages made to buyers who would otherwise have a hard time getting loans, but it has been shunned by banks following a wave of lawsuits by the Justice Department that alleged poor underwriting.
Wells Fargo, which made $6.3 billion in FHA-backed loans last year, is the only mainstream bank in the FHA’s top 20 originators, according to trade publication Inside Mortgage Finance.
The bank’s new mortgage allows borrowerswith credit scoresas low as 620 on a scale of 300 to 850to make down payments of as little as 3%, while also allowing them to use income from family members or renters to qualify. The requirements don’t represent a significant expansion of mortgage access, but will allow Wells Fargo to make more loans to low- and middle-income borrowers without going through theFHA.
The bank’s new program, which was launched through a partnership with mortgage-finance giant Fannie Mae, could replace about of half the bank’s current FHA volume and increase its market share, a person familiar with the matter said.
read more: http://www.wsj.com/articles/wells-fargo-to-offer-low-down-payment-mortgages-without-fha-backing-1464235261
Inside Mortgage Finance: Wells Fargo Fined $70 Million for Servicing Issues
The Office of the Comptroller of the Currency on Wednesday assessed a $70.0 million civil money penalty against Wells Fargo for violations of a consent order issued back in 2011. But the fine accompanied the termination of the consent order and the end of servicing-related restrictions Wells has been under since June 2015.
The OCC said the civil money penalty against Wells was due to violations of the consent order as recently as 2015 and a failure to correct deficiencies in a timely fashion. In June 2015, the OCC amended its servicing-related consent orders with Wells and five other banks, placing a number of restrictions on servicing activities due to their failures to meet requirements under the consent orders.
Since then, Wells has faced restrictions regarding acquisitions of servicing, mortgage servicing rights and origination business entities. The company also was required to receive approval from the OCC before completing certain servicing-related activities.
read more: http://www.insidemortgagefinance.com/imfnews/1_861/daily/occ-fines-wells-fargo-but-releases-it-from-servicing-order-1000036866-1.html?ET=imfpubs:e7797:63041a:&st=email&s=imfnews
Ocwen Off the Hook in MBS Fight
It was just over a year ago when a group of heavyweight investors accused Ocwen Financial of a laundry list of violations of its servicing obligations on $82B of home loans.
A yearlong independent investigation initiated by Wells Fargo – the deals’ master servicer – and carried out by Duff & Phelps, found no evidence any of the accusations carry any weight. Ocwen claimed all along that the investors were unhappy with its efforts to modify loan terms in order to keep people in their homes, and instead wanted foreclosures rushed through despite the restrictions Ocwen is under from a number of regulators.
From the Duff & Phelps report: No evidence Ocwen failed to account for P&I payments, no evidence Ocwen charged the Master Serviced Trusts for any undisclosed expenses, no evidence Ocwen engaged in modifications in oder to prematurely recover advances, no evidence to conclude generally that Ocwen made extreme and imprudent modifications.There’s no premarket action on this good news, but the stock did pop about 10%.