Unemployment Rate Falls Below 6 Percent For First Time Since ’08

Posted On May 31 2021 by

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington’s student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News’ sister publication, MReport, which focuses on mortgage banking news. Servicers Navigate the Post-Pandemic World 2 days ago Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago  Print This Post Home / Featured / Unemployment Rate Falls Below 6 Percent For First Time Since ’08 Previous: DS News Webcast: Friday 10/3/2014 Next: Kansas Man Sentenced for HAMP Fraud Bureau of Labor Statistics Economy Jobs Unemployment 2014-10-03 Tory Barringer Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Tory Barringercenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago October 3, 2014 1,028 Views After giving a soft performance in August, the labor market came back strong in September, knocking the national unemployment rate down below the 6.0 percent mark for the first time in more than six years.According to the latest monthly figures from the Bureau of Labor Statistics, the nation added 248,000 jobs in September, bringing employment growth back above 200,000 after an unexpected drop in August.Economists surveyed by the Wall Street Journal predicted the economy would add 215,000 jobs last month.Meanwhile, payroll figures for July and August were revised upward to 243,000 and 180,000, respectively, tacking on an additional 69,000 jobs to their original estimates. Over the last year, monthly job growth has averaged 213,000.With the latest estimate, the government puts the U.S. unemployment rate at 5.9 percent, its lowest since July 2008. This represents a decline of 0.2 percentage points from the 6.1 percent rate that was reported for August. The number of unemployed persons nationwide fell by 329,000 down to 9.3 million from August to September. Industries that experienced notable job growth in September were business services, retail trade, and health care.Year-to-date as of the end of September 2014, the unemployment rate has fallen by a total of 1.3 percentage points and the number of unemployed persons has decreased by 1.9 million, according to the Bureau of Labor Statistics. Unemployment Rate Falls Below 6 Percent For First Time Since ’08 in Featured, News Is Rise in Forbearance Volume Cause for Concern? 2 days ago Tagged with: Bureau of Labor Statistics Economy Jobs Unemployment The Best Markets For Residential Property Investors 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more


Serious Delinquency Numbers Continue Shrinking

Posted On May 31 2021 by

first_img Related Articles Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Mortgage Incomes Down in Q4 for U.S. Bank, PNC Next: DS News Webcast: Monday 1/18/2016  Print This Post About Author: Brian Honea Tagged with: Black Knight Financial Services CoreLogic Fannie Mae FHFA Freddie Mac Serious Delinquencies Fewer and fewer residential mortgage loans are seriously delinquent (90 or more days past due) as the crisis passes its seven-year anniversary, according to several different measures recently released. In some cases, the number of seriously delinquent loans is at or below pre-crisis levels.In its most recent National Foreclosure Report, CoreLogic reported a serious delinquency rate of about 3.3 percent as of the end of November 2015, which computes to about 1.25 million homes—the lowest level since December 2007, before the crisis.“Tight post-crash underwriting standards coupled with much improved economic and housing market fundamentals have combined to push new mortgage delinquencies to 15-year-lows,” said Anand Nallathambi, president and CEO of CoreLogic. “Although judicial states will likely continue to lag, given current trends, it is reasonable to expect a continued and significant drop in the rate of serious delinquencies and foreclosure starts in 2016.”According to CoreLogic, non-judicial foreclosure states continued to have much lower serious delinquency rates than judicial foreclosure states in November. Only six non-judicial states had serious delinquency rates higher than the national average of 3.3 percent for the month, while only five judicial states had serious delinquency rates below the national average for November. The state with the highest serious delinquency rate was still New Jersey at 7.8 percent, followed by New York at 6.4 percent and Florida with 5.4 percent.In its November 2015 Mortgage Monitor, Black Knight Financial Services reported a 26 percent drop year-over-year in 90-plus day delinquent inventory, down to about 827,000 properties. The number of 90-plus day delinquencies was still way down year-over-year despite a seasonal uptick in November.The FHFA reported in its Foreclosure Prevention Report for October 2015 released earlier this week that the serious delinquency rate on residential mortgage loans backed by Fannie Mae and Freddie Mac dropped from 1.52 percent to 1.50 percent. The GSEs are completing fewer loan modifications, however; through the first 11 months of 2015, Fannie Mae averaged slightly less than 8,000 loan mods per month compared to more than 10,000 monthly for all of 2014.The share of 60-day delinquencies for the GSEs was at 1.9 percent in October, down from its peak of 5.9 percent in 2011. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Foreclosure, News January 15, 2016 1,130 Views Share Savecenter_img The Best Markets For Residential Property Investors 2 days ago Serious Delinquency Numbers Continue Shrinking Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Black Knight Financial Services CoreLogic Fannie Mae FHFA Freddie Mac Serious Delinquencies 2016-01-15 Brian Honea Home / Daily Dose / Serious Delinquency Numbers Continue Shrinkinglast_img read more


The Week Ahead: Talking Appraisal

Posted On May 31 2021 by

first_img Related Articles in Daily Dose, Featured, Headlines, News This Week’s ScheduleMonday, February 6Labor Market Conditions Index, 10 AM ETThursday, February 9Jobless Claims, 8:30 AM ETFriday, February 10University of Michigan’s Survey of Consumers, 9:00 AM ET Demand Propels Home Prices Upward 2 days ago Share Save Home / Daily Dose / The Week Ahead: Talking Appraisal Governmental Measures Target Expanded Access to Affordable Housing 2 days ago February 5, 2017 1,170 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Subscribe The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Postcenter_img 2017-02-05 Phil Banker Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Talking Appraisal Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Phil Banker began his career in journalism after graduating from the University of North Texas. He has covered a number of communities across Texas and southern Oklahoma, writing news and sports for publications including the Ardmoreite, Ennis Daily News and the Plano Star-Courier. He is currently a contributor to DS News and The MReport. Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Next week, DS News will speak with Adam Johnston, Chief Appraiser and Director of Investigations for Genworth Financial’s U.S. mortgage insurance business and board member at the Appraisal Foundation. Genworth will also release their latest financial results next week.In his role with Genworth, Johnston manages a team of review appraisers who provide appraisal support to all U.S. mortgage insurance functions.  In addition to his 25 years of appraisal experience, he is a former police officer and served in the United States Marine Corps. A Certified Residential Appraiser in several states, Johnston is a designated member of the Appraisal Institute, with the SRA and AI-RRS designations.Johnston will talk about what his focus will be as a board member for the Appraisal Foundation, and why the appraisal industry is largely overlooked in the mainstream media despite being so important to the homebuying process. He’ll also talk about the effects Dodd-Frank had on the appraisal industry, and what changes he believes needs to be made in the industry going forward.Consumer Sentiment on the RiseWhile the consumer sentiment level rose in January, audiences are showing optimism for their personal finances and the state of the economy.The University of Michigan’s Survey of Consumers collects data from approximately 500 households and asks questions pertaining to consumer attitude and consumer sentiment on their financial status and attitudes about the economy. The sentiment index level for January was at 98.5 percent, which is a 0.3 percent increase from December 2016.Richard Curtin, the chief economist of the Consumer Survey, stated that consumers “anticipated the most positive outlook for their personal finances in more than a decade” in last month’s findings.Business Insider noted that consumer confidence has surged in the wake of the election of President Donald Trump, as improved outlooks for growth and jobs have strengthened the index.Curtin cited that the consumer sentiment might have led to an increase in mortgage rates.“Consumers have become more convinced that the stronger economy would finally prompt the Fed to increase interest rates at a quicker pace, which caused one-in- five consumers to favor borrowing-in-advance of anticipated increases in mortgage rates, the highest level in more than twenty years,” he said.Also set to be released 10 a.m. Monday will be the Labor Market Conditions survey compiled by the Federal Reserve, as well as the Jobless Claims report at 8:30 a.m. Thursday.Will consumer sentiment remain on the ascent for February? Previous: Rising Interest Rates to Help MSR Holders Next: Homeowners Use Tax Refunds as Lifeline About Author: Phil Bankerlast_img read more


CFPB to Amend Equal Credit Opportunity Act

Posted On May 31 2021 by

first_img in Daily Dose, Featured, Government, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago CFPB to Amend Equal Credit Opportunity Act Home / Daily Dose / CFPB to Amend Equal Credit Opportunity Act Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago About Author: Seth Welborn The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Seth Welborn is a contributing writer for DS News. He is a Harding University graduate with a degree in English and a minor in writing, and has studied abroad in Athens, Greece. An East Texas native, he also works part-time as a photographer. CFPB Regulation 2017-03-24 Seth Welborn Related Articles March 24, 2017 2,106 Views Previous: Fraud in Loan Apps Up in February Next: Ocwen Appoints Independent Member on its Board of Directorscenter_img The Consumer Financial Protection Bureau released a proposal to amend certain regulations in the Equal Credit Opportunity Act (ECOA). The intent is to provide additional flexibility for mortgage lenders in the collection of consumer ethnicity and race information. The proposed amendments should provide greater clarity to lenders regarding their obligations under the law, and according to the CFPB will promote compliance with rules intended to ensure customers are treated fairly.”This law is a key part of the government’s commitment to root out discrimination,” said CFPB Director Richard Cordray. “This proposal will help industry comply with the law and help protect consumers against illegal discrimination.”The ECOA was enacted in October 1974 to make it unlawful to discriminate against any credit applicant based on race, race, color, religion, national origin or sex, except in certain circumstances. The CFPB’s proposal to amend Regulation B of the ECOA would provide compliance flexibility for individual mortgage lenders, and would also support the broader mortgage industry’s ability to use consistent forms and compliance practices. The proposal would allow more lenders to use application forms with expanded requests for information from a consumer regarding ethnicity and race.Creditors may have to collect and retain certain information about applicants for certain loans under Regulation B, and in some cases, financial institutions may be required to report applicant information under Regulation C. The CFPB had previously issued amendments to Regulation C in October 2015, including changes to the collection of ethnicity and race information from applicants. The proposed amendments to Regulation B would give credit institutions additional flexibility in how it collects applicant information, so that they may better align with Regulation C.The proposal would allow creditors to collect information from applicants in situations when they would otherwise not be required to do so.The entire proposal can be found here.  Print This Post 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 Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: CFPB Regulation Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more


FHFA Drops Optimistic 2016 Report to Congress

Posted On May 31 2021 by

first_img  Print This Post The Best Markets For Residential Property Investors 2 days ago FHFA Drops Optimistic 2016 Report to Congress Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The Federal Housing Finance Agency released recently its exhaustive annual 2016 Report to Congress, where it highlights actions it has taken over the year to support and maintain the nation’s housing industry. The 120 page report covers, amongst others: a report of the annual examination of Fannie Mae and Freddie Mac (The Enterprises), reports of annual examinations of the Federal Home Loan Banks, the results of stress tests under the Dodd-Frank Wall Street Reform Consumer Protection Act, enterprise housing goals and duty to serve, the federal home loan bank mission and affordable housing programs, and offers regulatory guidance. You can find some of the report’s highlights below. Annual Examination of The EnterprisesIn 2016 Fannie Mae reported an net income of $12.3 billion and an annual comprehensive income of $11.7 billion, compared to a net income of $11.0 billion and a comprehensive income of $5.8 billion in 2015. Freddie Mac also showed similar year-over-year growth, with an annual net income of $7.8 billion and a comprehensive income of $7.1 billion. In 2015 the lender reported a net income of $6.4 billion and a comprehensive income of $5.8 billion. The report also found that the Enterprises earned more of their income from guarantee fees than from interest. Annual Examination of Federal Home Loan Banks (FHLBanks) FHLBanks saw impressive growth in 2016 that was bolstered by increases in advances to members. The year closed with a net income of $3.4 billion and total assets increased by $88.8 billion—9.2 percent—to $1.06 trillion. Aggregate assets were their highest since 2009. FHLBanks reside in Boston, New York, Pittsburg, Atlanta, Cincinnati, Indianapolis, Chicago, Des Moines, Dallas, Topeka, and San Fransisco. Results of Stress TestsFannie Mae, in its Severely Adverse scenario, predicted draws from the Treasury Department between $22.8 billion and $73.0 billion depending on deferred tax assets. By year end of 2015 Fannie Mae drew $116.1 billion from the Treasury, with about that much of remaining funding commitment. Freddie Mac predicted draws between $26.4 billion and $52.8 billion, depending. Year end 2015, they had drawn from the Treasury Department $71.3 billion. Finally, all of the FHLBanks were found to be compliant with regulatory capital and leverage capital requirements for the entirety of the nine-month stress test. All 11 banks did predict a negative net income under the Severely Adverse scenario. You can find the entire report here The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, News, Secondary Market Previous: Current Costs of Living Effects Homebuyers Affording College Tuitions Next: Potestivo & Associates Announces New Partners Home / Daily Dose / FHFA Drops Optimistic 2016 Report to Congress Related Articles June 16, 2017 2,024 Views Tagged with: Congress Fannie Mae FHFA FHLBanks Freddie Mac Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Staff Writer Data Provider Black Knight to Acquire Top of Mind 2 days ago Congress Fannie Mae FHFA FHLBanks Freddie Mac 2017-06-16 Staff Writer Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Sign up for DS News Daily Subscribelast_img read more


Building a Common Ground

Posted On May 31 2021 by

first_img Related Articles Home / Daily Dose / Building a Common Ground Servicers Navigate the Post-Pandemic World 2 days ago July 14, 2017 1,289 Views Share Save The Best Markets For Residential Property Investors 2 days ago NAHB OSB Softwood Lumber 2017-07-14 Joey Pizzolato in Daily Dose, Featured, Headlines, News Demand Propels Home Prices Upward 2 days ago Previous: Tip of the Iceberg Next: Mortgage Credit: Gaining Ground About Author: Joey Pizzolato Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Building a Common Ground The Best Markets For Residential Property Investors 2 days ago  Print This Post The price of building materials can’t seem to find a common ground, according to the National Association of Home Builders (NAHB), which compiled the prices of softwood lumber, oriented strand board (OSB), gypsum, and ready-mix concrete in a recent June release.Softwood lumber prices dropped 3 percent, according to the Producer Price index. This is the first time in seven months that the price of softwood lumber fell, and is the largest drop in percentage points since September 2016.One interesting thing about this, reports the NAHB, is that it doesn’t match up with their own data on softwood lumber prices, which showed a drop in price of approximately 1 percent. They attribute this anomaly to two factors: the time between different reports in PPI data, and the different goods included in the specific index.Further, the NAHB’s reported decline is consistent with the Random Lengths Lumber Composite Price (FLCP), which fell 1.3%. They report that if the trend continues, July’s PPI report will correct itself and show an increase in prices.Oriented strand board fell by a marginal amount—0.4 percent. It was the first time since OSB fell in price since December 2016, when they dropped 0.5 percent. The price index, however, on a year-over-year margin, remains 20.9 percent higher, and has risen 15.2 percent from the beginning of 2017 to the end of May.Gypsum prices, conversely, have increased 1.3 percent after making a small decline a month prior, where they fell 0.2 percent and have since stabilized. Gypsum prices have fluctuated as much as 10 points.The seasonally-adjusted price of ready-mix concrete also increased in June by 0.4 percent, which is in line with its average since 2000, during which time prices increased by 0.3 percent in almost every month.The economy-wide PPI saw some movement in June (0.1 percent) after staying stagnant a month prior. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 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] Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: NAHB OSB Softwood Lumber Subscribelast_img read more


Money to Recovering Cities

Posted On May 31 2021 by

first_imgSubscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago August 1, 2017 989 Views 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] Disaster Relief HUD 2017-08-01 Brianna Gilpin Share Save  Print This Post Previous: NMSA Urges FCC to Clarify Definition of Robocalling Next: A Helping Hand from HUD Related Articles Demand Propels Home Prices Upward 2 days ago About Author: Brianna Gilpin When major disasters happen, many individuals first reaction is to make sure everyone is safe, but once the dust settles, it’s time for the city itself to recover. That’s when the Consolidated Appropriations Act of 2017 and Housing and Urban Development’s (HUD) Community Development Block Grant – Disaster Recovery Program comes in.Signed May 5 by President Trump, the Act gives $400 million to areas that are in need of recovery from major disasters such as earthquakes or flooding. Tuesday, HUD Secretary Ben Carson announced an additional $178.5 million provided through the grant program to help states recover from disasters from 2015 and 2016. So far, $343 million has been provided for disaster recovery, with the remaining $57 million to be allocated sometime in the future to areas that may experience disaster.“Clearly, there are hard-hit communities in these states that need more help to recover from the devastating floods they experienced over the past two years,” said Secretary Carson.  “Today, we make another investment in the future of these communities and to help our neighbors in need.”These grants are allocated to Florida (57,530,000), West Virginia ($42,383,000), North Carolina ($31,862,000), South Carolina ($27,769,000), and Texas ($9,785,000) for 2016 and for 2015, Texas ($8,233,000) with a specific focus on San Marcos, Texas ($978,000) who experienced extreme flooding.Through supplemental spending measures, Congress appropriated a combined $3 billion through HUD’s Community Development Block Grant – Disaster Recovery Program. The largest amount of grant money has been given to Louisiana following 2016 flooding in Baton Rouge and the surrounding parishes, totaling $1.7 billion in recovery funds.”Today, HUD makes another investment to support long-term disaster recovery in communities that continue to experience significant and persistent need,” said Secretary Carson in the May allocation of grant funds. “Supporting the people and places still struggling to rebuild is a top priority at HUD.”center_img The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Tagged with: Disaster Relief HUD Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Money to Recovering Cities Home / Daily Dose / Money to Recovering Cities in Daily Dose, Featured, Government, News The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more


Hurricane Barry Property Damage Hits $500M

Posted On May 31 2021 by

first_img About Author: Seth Welborn 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago New data indicates that Hurricane Barry caused between $500 Million and $900 million in flood and wind losses. According to CoreLogic, flood loss for residential and commercial properties in Louisiana is estimated to be between $200 million and $400 million, and insured flood loss from private insurers is estimated at less than $100 million.Insured residential and commercial flood loss covered by the NFIP is estimated to be between $100 million and $200 million, but 20% of residential flood loss is uninsured. CoreLogic states that uninsured flood loss is estimated to be approximately $100 million, while approximately 500,000 total residential and commercial property policies are in force through the NFIP.Wind losses, not covered by the NFIP, are expected to total between $300 million and $500 million. Insured flood and wind losses, excluding National Flood Insurance Program (NFIP) losses, are between $300 million and $600 million.Many homeowners may be unaware that flood insurance is a premium provided through the National Flood Insurance Program (NFIP), rather than an included feature in their homeowner’s insurance. For example, wind damage is covered in standard insurance, and flood is a separate coverage which is not mandatory outside the designated Special Flood Hazard Areas (SFHAs).  A recent survey by insuranceQuotes.com attempts to shed some light on what homeowners should know when it comes to their homeowners insurance policy, including flood insurance.According to the NFIP, a flood is “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from overflow of inland or tidal waters, from unusual and rapid accumulation or runoff of surface waters from any source, or from mudflow.”The NFIP’s availability to homeowners may improve in coming months, especially for those impacted by natural disasters. Recently, the House Financial Services Committee unanimously approved two bills to reform and reauthorize the NFIP. H.R. 3111 would bring improvements to the NFIP appeals process, accountability, and transparency of claims process in the aftermath of Hurricane Sandy, and H.R. 3167 would reauthorize the NFIP for five years and includes numerous reforms to increase affordability, mapping and modernization. The Best Markets For Residential Property Investors 2 days ago flooding Louisiana nfip 2019-07-19 Seth Welborn Share Save Tagged with: flooding Louisiana nfip July 19, 2019 1,262 Views Demand Propels Home Prices Upward 2 days ago  Print This Post Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days agocenter_img Previous: The Industry Pulse: Updates on ClosingCorp, Nationwide, and More Next: Fannie Mae Finalizes Reperforming Loan Sale Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Hurricane Barry Property Damage Hits $500M Home / Daily Dose / Hurricane Barry Property Damage Hits $500M The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, Loss Mitigation, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more


Junior Lienholders: Claim Your Surplus Funds

Posted On May 31 2021 by

first_img Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Junior Lienholders: Claim Your Surplus Funds Related Articles About Author: Nicholas J. Vanhook 2019-11-12 Seth Welborn The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Jane E. Bond The Week Ahead: Nearing the Forbearance Exit 2 days ago Nicholas J. Vanhook is a Partner at McCalla Raymer Leibert Pierce, LLC, and joined the firm in 2010. An experienced litigator, Vanhook uses his knowledge to find creative ways to resolve issues for mortgage servicers. Vanhook received his Juris Doctorate from the Levin College of Law at the University of Florida. Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Junior Lienholders: Claim Your Surplus Funds Editor’s note: This feature originally appeared in the November issue of DS News, now available onlineEver since the United States housing market collapse in 2008, when a lender instituted a foreclosure action and obtained a Final Judgment of Foreclosure, the foreclosure sales process has remained relatively straightforward in Florida. The property is listed for sale at a public auction, a Certificate of Title is issued to highest bidder—typically the lender, for a nominal amount—and the property is placed in that lender’s book of real estate owned until it is eventually marketed and sold to the general public. The primary reason this process has been so straightforward has been based on one simple fact: the Final Judgment of Foreclosure was for an amount substantially more than what the property was worth. Since the lender received a credit bid at the foreclosure sale for the value of its judgment, third-party purchasers were rarely the highest bidders at the public auction. The logic behind this standard course of events is simple. Why would a third party pay more for a property than what it was worth? Simply put, they wouldn’t.The New NormalFast-forward over a decade and the process, outlined above, is becoming less standard. Once again, the reason is based on one simple fact: property values have not only stabilized over the past decade but have also increased to a level that the Final Judgment of Foreclosure obtained by a lender is often for an amount less than the property’s value. Therefore, those third-party purchasers, who were nowhere to be found 10 years ago, are now competitively bidding at foreclosure sales, and the winning bid is often tens of thousands of dollars more than the Final Judgment of Foreclosure. These surplus funds are then held by the County Clerk, pursuant to 45.032, Fla. Stat., until a court order is entered determining how the funds should be distributed.In this current era of surplus funds becoming the norm as opposed to the exception, the $64,000 question is, who is entitled to these funds and what is the proper procedure to ensure they are obtained? It is well established under Florida law that any surplus remaining after a foreclosure sale should be paid to the junior lienholders based on their priority as it relates the foreclosed property. Only after junior liens have been satisfied can the prior homeowner receive any surplus funds [General Bank, F.S.B. v. Westbrooke Pointe, Inc., 548 So. 2d 736 (Fla. 3d D.C.A. 1989)]. It’s a simple premise, but for a variety of reasons, surplus funds are not always properly distributed when numerous junior lien holders, as well as the prior homeowner, are all trying to convince the court they should be paid first.Best PracticesIf you represent one of these junior lienholders clamoring for surplus funds, here are a couple things to consider:As a named defendant in the first mortgagee’s foreclosure action, if a junior lienholder fails to respond and/or is subsequently defaulted, does that preclude the junior lienholder from seeking surplus funds? In a word, no. However, lawyers and judges alike have previously, and incorrectly, viewed a failure to respond as an inability to make a claim for any surplus. Failure to respond is deemed an admission as to the allegations contained in the complaint, or more specifically, that their lien is junior to that of the first mortgagee. It is not an admission that the junior lienholder does not have any claim to the property [Wiseman v. Stocks, 527 So. 2d 904 (Fla. 1st DCA 1988), D.A.D., Inc. v. Poole, 407 So. 2d 1072 (4th DCA 1981)]. That said, it is still recommended that a junior lienholder files a response, if for no other reason than to prevent unnecessary costs litigating the issue and ensure notices of upcoming court events, especially the foreclosure sale itself, are timely received.When does a junior lienholder need to file a claim with the court to ensure it doesn’t waive its right to the surplus funds being held by the county clerk? Until recently, it was the stereotypical attorney answer of “it depends.” However, the Florida Supreme Court provided clarity to this question in Bank of New York Mellon v Glenville, 252 So.3d 1120 (Fla.2018). Pursuant to Glenville, a claim for surplus funds needs to be filed within 60 days of the clerk issuing the Certificate of Disbursements. This ruling resolves any ambiguity regarding the event that triggers a junior lienholders deadline to file a claim for surplus funds under 45.032(1)(b), Fla. Stat.Now that you feel comfortable with the certainty surrounding the Florida Supreme Court decision in Glenville, House Bill 1361 went into effect on July 1, 2019. Amongst other statutory changes, HB 1361 amends 45.032, Fla. Stat. and the largest change to 45.032, Fla. Stat. is the elimination of a “surplus trustee.” Essentially, the surplus trustee was the person appointed by the county clerk to seek out the prior homeowner, if no surplus claim was filed by any party within the 60 days discussed in Glenville. This surplus trustee had one year from the date it was appointed to locate the prior homeowner before those funds were deemed unclaimed property. Now, HB 1361 attempts to simplify this process by stating any surplus remaining with the county clerk one year after the foreclosure sale is then reported as unclaimed property by the county clerk.The additional consequence of HB 1361 is it removed that same sixty (60-day timeline from 45.032(1)(b), Fla. Stat., and replaced it with “prior to the date that the clerk reports the surplus as unclaimed.” From the plain language of 45.032, Fla. Stat., as amended on July 1, 2019, junior lienholders will now have additional time to file a claim. The junior lienholders will need to file a claim within the year after the foreclosure sale and before the clerk reports the remaining surplus as unclaimed funds. Whether these changes to 45.032, Fla. Stat. eliminates the Glenville opinion altogether remains to be seen. Until new opinions are released on the topic, the most prudent course of action is to make a surplus claim as soon as possible after the sale to ensure the surplus funds are obtained to partially or fully satisfy your own lien.Once all competing junior lienholders timely file their claim for surplus funds and an evidentiary hearing is set to determine priority, can a junior lienholder rely on an affidavit to establish amounts due to them or does a witness need to appear to provide testimony? This time, we must fall back on the ever frustrating “it depends” answer. One option is a junior lienholder can avoid the costs of sending a witness to testify if a Notice of Intent to Rely on Business Records under 90.803(6)(c), Fla. Stat., is timely filed. However, should the junior lienholder fail to timely file its Notice of Intent or an opposing party objects to same, a witness for the junior lienholder should appear in person to provide testimony. Under 90.806(2), Fla. Stat. an opposing party is entitled to call the declarant as a witness for purposes of cross examination. Clearly, an opposing party cannot cross examine an affidavit, which is why a witness would be needed. Despite this requirement, junior lienholders routinely appear at surplus evidentiary hearings without filing a Notice of Intent under 90.803(6)(c), Fla. Stat. and only with an affidavit to support the amounts due and owing to them. If none of the competing junior lienholders object to the affidavit being admitted into evidence, the court can rely on the affidavit when making a ruling. However, a more experienced litigator can easily object to the affidavit being admitted into evidence under 90.806(2), Fla. Stat. and the court should sustain such an objection. If the surplus funds are only a couple thousand dollars, expending the costs to send a witness to provide testimony does not make “dollars and cents” as a business decision for the junior lienholder. In this situation, another option is to try and elicit an agreement between all competing junior lienholders prior to the evidentiary hearing that allows the parties to proceed by way of an affidavit.The Big PictureRegardless of how a junior lienholder decides to proceed, the most important takeaway is that, if a junior lienholder proceeds to an evidentiary hearing intending to only rely upon an affidavit to support its surplus claim, it risks the court not allowing said affidavit into evidence. Also, an even worse outcome would be if the court admits the affidavit into evidence and an opposing party appeals the court’s ruling, effectively eliminating any surplus the junior lienholder may have been entitled to, due to the cost of the appeal.In our ever-changing default industry, the large increase in property values opens avenues for junior lienholders to be reimbursed, even if only partially, when a foreclosure action occurs. Clearly, this is a positive for all lenders. However, a positive can quickly turn into a missed opportunity if lenders and their respective attorneys do not timely make a claim for surplus and/or fail to properly get evidence admitted into the record. in Daily Dose, Featured, News, Print Features November 12, 2019 2,567 Views Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Previous: The Changing Face of Mortgage Servicing Next: 11 State Attorneys General Challenge CFPB Leadership Structure  Print This Post Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Jane Bond is the Managing Partner of Florida Litigation at McCalla Raymer Leibert Pierce with over 30 years’ experience in all areas of mortgage servicing litigation. Bond serves on the advisory board of the Legal League 100 and enjoys speaking on panels, writing articles, and holding trainings to help educate those in our industry. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more


Ed Delgado: ‘Pettiness of Politics’ Eroding Confidence in Mortgage

Posted On May 31 2021 by

first_img Share Save  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago House Financial Services Committee Mortgage Industry 2020-05-06 Mike Albanese Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Ed Delgado: ‘Pettiness of Politics’ Eroding Confidence in Mortgage About Author: Mike Albanese The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Tagged with: House Financial Services Committee Mortgage Industry Servicers Navigate the Post-Pandemic World 2 days agocenter_img Sign up for DS News Daily Ed Delgado: ‘Pettiness of Politics’ Eroding Confidence in Mortgage The Best Markets For Residential Property Investors 2 days ago Previous: Proctor Financial Acquires Loan Protector Next: Treasury Delivers Update on Residential Investment Demand Propels Home Prices Upward 2 days ago Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Data Provider Black Knight to Acquire Top of Mind 2 days ago Several members of the House Financial Services Committee, including Chairwoman Maxine Waters, sent letters to the nation’s largest mortgage servicers, requesting information on their communication about relief to borrowers with federally-backed mortgages under the CARES Act. “Millions of homeowners will rely on the relief included in the CARES Act as they struggle to make timely mortgage payments in the coming months,” the lawmakers wrote. “As one of the largest servicers of federally-backed mortgages, it is critical that you communicate consistent and accurate information regarding the options available to borrowers who are unable to make their mortgage payments due to financial hardship that is directly or indirectly related to the pandemic. Similarly, borrowers seeking assistance must be able to contact a customer service representative without excessive wait times or other delays.”Congressman Gregory Meeks (D-New York), Chair of the Subcommittee on Consumer Protection and Financial Institutions; Congressman Wm. Lacy Clay (D-Missouri), Chair of the Subcommittee on Housing, Community Development, and Insurance; and Congressman Al Green (D-Texas), Chair of the Subcommittee on Oversight and Investigations, were included in the letter. The Committee sent letters to the following banks: Bank of America CorporationJPMorgan Chase & Co.Lakeview Loan Servicing, LLCLoanCare LLCMr. Cooper Group, Inc.New Rez, LLCPennyMac Financial Services, Inc.Quicken LoansTruist Financial CorporationU.S. BancorpWells Fargo & CompanyEfforts by DS News to obtain comments by several of these banks by press were not returned.The Committee requested additional items from the indicated banks, including all policies and procedures effective as of or since March 27, 2020, related to accepting and processing requests for forbearance; applicable standards and requirements for approving forbearance requests; and initiating and continuing foreclosure proceedings. The Committee also requested training materials, instructions, and call scripts provided to customer service employees since March 27. The Committee also requested screenshots of all information provided on their websites, including an online platform to make mortgage payments.Addressing the needs of pandemic-impacted homeowners has been a primary focus for the industry over the past two months. Government agencies such as Ginnie Mae, HUD, and FHFA have announced updated guidance or programs designed to address best practices and potential servicer shortfalls during this period.The U.S. Congress passed the CARES Act to provide borrowers with federally backed mortgage protection, including a 60-day moratorium on foreclosures, which is set to expire on May 17.  However, one early concern that remains is liquidity as mortgage servicers are required to continue making payments on mortgage-backed securities to investors, despite a loss of revenue on the front end as more homeowners enter into forbearance plans as a result of COVID-19 economic impacts such as lost jobs or other financial struggles.Addressing the mortgage servicing industry’s ongoing response to the COVID-19 pandemic, Ed Delgado, President and CEO of Five Star Global, said, “U.S. financial institutions reacted swiftly and responsibly to decrease the number of homes that could enter foreclosure and help the millions of Americans whose livelihoods are at stake.”Delgado added, “The pettiness of politics is a corrosive agent, eroding confidence in the mortgage industry. At a time when we look to our business and political leaders for support, the inference that mortgage banks failed to respond in a timely and proper manner to the national health crisis is both reckless and irresponsible.” More than 26 million Americans have filed unemployment claims over the past five weeks. The Best Markets For Residential Property Investors 2 days ago May 6, 2020 1,287 Views in Daily Dose, Featured, Government, News Related Articleslast_img read more