|Industry Leaders Discuss Future of Housing
Several representatives from The Collingwood Group attended Five Star’s Government Forum last week in Washington, DC. Chairman Tim Rood participated in panel discussions alongside fellow thought leaders, including Ed Delgado, Five Star Institute President; Ben Carson, Department of Housing and Urban Development (HUD) Secretary; Ed DeMarco, President of the Housing Policy Council; and Peter Wallison, American Enterprise Institute Fellow. Collingwood Group Vice Chairman Brian Montgomery was also in attendance.
As DC endures political change and a dramatic shift in the direction of policymaking, Delgado said the event was designed to “serve as a platform to foster and grow the collaborative working relationship between regulatory authorities and the industry stakeholders for the benefit of homeowners.” Each panel offered a backdrop of current policy with strategic suggestions for overcoming impediments and realigning the industry’s focus on homeownership.
The prospects for housing finance reform, 2018 Consumer Financial Protection Bureau (CFPB) enforcement priorities, the state of the housing economy and regulatory compliance strategies were all hot topics of discussion.
Rood moderated the closing panel on HUD and the future of the housing market. With roughly 75 million baby boomers reaching retirement, Rood stressed the importance of HUD’s Home Equity Reverse Mortgage (HECM) program. “Reverse mortgages continue to fulfil a vital role in housing, especially for seniors that lack sufficient retirement savings,” said Rood. At the same time that seniors’ homeownership and mortgage needs are changing, “younger adults are not forming households at the same rate they used to,” said Leonard Kiefer, Freddie Mac Deputy Chief Economist, during his remarks. Rood’s panel discussion also touched on the Claims Without Conveyance Title (CWCOT) program, which has proven to be a highly successful alternative to REO.
The Collingwood Group continues to be at the forefront of critical policy and strategy discussions, helping clients navigate regulatory change and evolving market conditions.
Read more: MReport
Rising Home Prices Push Borrowers Deeper Into Debt
More Americans are stretching to buy homes, the latest sign that rising prices are making homeownership more difficult for a broad swath of potential buyers.
Roughly one in five conventional mortgage loans made this winter went to borrowers spending more than 45% of their monthly incomes on their mortgage payment and other debts, the highest proportion since the housing crisis, according to new data from mortgage-data tracker CoreLogic Inc. That was almost triple the proportion of such loans made in 2016 and the first half of 2017, CoreLogic said.
Economists said rising debt levels are a symptom of a market in which home prices are rising sharply in relation to incomes, driven in part by a historic lack of supply that is forcing prices higher.
Real-estate agents worry that buyers’ weariness from being priced out of the market could make this one of the weakest spring selling seasons in recent years.
Consumers are growing more optimistic about the economy and their personal financial prospects but less hopeful that now is the right time to buy a home, according to results of a survey released in late March by the National Association of Realtors.
Read more: Wall Street Journal
12 Cities Where Houses for Rent are Growing Faster than Apartments
As the housing market continues seeing higher home prices, strong demand and historically low mortgage rates, single-family rental inventory is growing at a faster pace than apartments in a majority of the nation’s 30 largest cities, according to RentCafe.
While many distressed single-family properties were snapped up by investors during the housing crisis, only 2% of the more than 15 million single-family rentals on the market belong to large investment firms, while almost half, or 45%, belong to landlords owning just one unit, which could signify that homeowners are holding on to their homes, RentCare said.
With home values continuing to grow and mortgage rates at historic lows, move-up homebuyers may find it appealing to become landlords as costs to rent continue rising, meaning homeowners are able to maintain the mortgage on their original house while perhaps making a profit.
Here’s a look at the top 12 cities where single-family rentals are growing faster than apartment rentals.
- Phoenix, AR
- Boston, MA
- Fort Worth, TX
- Austin, TX
- Charlotte, NC
- El Paso, TX
- Indianapolis, IN
- Nashville, TN
- Las Vegas, NV
- Chicago, IL
- Memphis, TN
- Houston, TX
Read more: National Mortgage News
Puerto Rico to get $18.5 Billion from HUD for Hurricane Maria Recovery
Puerto Rico will receive about $18.5 billion from the US Department of Housing and Urban Development to repair and fortify houses, businesses and infrastructure wrecked by Hurricane Maria, the agency announced Tuesday.
The US commonwealth will get about $10.2 billion to cover needs stemming from the disaster, plus $8.3 billion for “mitigation” activities, meant to protect it from future events.
The money is meant to support disaster recovery, including rebuilding or redeveloping housing, repairing infrastructure and assisting businesses.
Read more: CNN
Luxury Homes Are Taking Longer to Sell and That’s Costing Owners
Luxury homes aren’t selling as fast as they used to. And their owners are paying a price for the slowness.
Last year, 72 percent of the most-expensive properties in the U.S. took longer than 180 days to sell, a sharp jump from 2015, when 59 percent of homes lingered for that long, according to a report Wednesday by Concierge Auctions.
That extra time means lost money. When those languishing homes found buyers, they did so for only 71 percent of the original asking price. Owners that sold in less than six months got 93 percent of what they sought.
“Every day a luxury property is on the market, it depreciates in value,” Concierge said in its report, which reviewed the 10 priciest completed transactions in 40 markets across the country.
Concierge, a luxury-auction company that promises to close deals within 90 days, has a vested interest in promoting the need for speed. But the dollars lost when a home sits unsold would make any owner take notice.
Read more: Bloomberg
MISMO Creates Group Focused on Blockchain Technology
MISMO, the Mortgage Industry Standards Maintenance Organization, has created a new group to foster conversation about the potential for using Blockchain within the mortgage industry. The new group, officially known as the Blockchain Community of Practice, will explore this emerging technology to understand where and how it could be used within the industry, as well as what might be required to implement the technology. MISMO invites all interested parties to participate in this new group. By joining this Community of Practice, participants will also gain access to blockchain experts and related educational materials that explain blockchain technology.
“As the development and use of digital mortgage tools continues to accelerate, there is a real potential for our industry to leverage blockchain technology to improve transparency and reduce costs, which are the key goals of any mortgage banking operation,” said Laurie Pyle, Chief Operating Officer, Factom. “By joining the new Blockchain Community of Practice, mortgage industry participants have the opportunity to be on the ground floor of this exciting new technology and to provide input on new standards and best practices that may soon revolutionize the world of mortgage finance.”
Read more: National Mortgage Professional
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