Month: May 2021 Page 1 of 16

Unchanged Home Prices Raises Questions

first_img in Daily Dose, Featured, Headlines, Market Studies, News Related Articles The Data & Analytics division of Black Knight Financial Services (BKFS) reported no monthly change in its Home Price Index (HPI) for January, underlining the question as to where other home price reports—including the monthly Case-Shiller Home Price Indices—will land for the year’s first month.BKFS’ latest report shows the index registering $232,000 in January, unchanged from the end of 2013. Year-on-year, the index was up 8 percent from $215,000.”Prices have flattened out due to seasonal effects and a slowing in the market,” said Raj Dosaj, VP of behavioral models and HPI for Black Knight Data & Analytics.Given January’s flatness, national prices remain 14 percent off their peak of $270,000 in June 2006.Of the 20 largest states, California posted the biggest year-over-year increase at 14.8 percent. On a monthly basis, it ranked among the top five largest states, reporting a gain of 0.3 percent.Among all states, New York topped in gains with a 0.6 percent monthly increase. Following the Empire State were New Jersey (0.5 percent) and Nevada, Pennsylvania, Georgia, and the District of Columbia—all at 0.4 percent.Not making the top 10 list in January was Texas, which, after several months spent climbing to new price peaks, backed off a bit with a 0.3 percent month-over-month decline.Among metros, half of the top 10 performers in January can be found in California—not a surprise, given the state’s representation in past HPI reports. Top movers included San Jose (0.9 percent), Santa Rosa (0.8 percent), and Oxnard (0.7 percent), California, which took up the top three spots. Also reporting gains were New York City and San Francisco, each at 0.7 percent.As for this week’s other indices, Dosaj expects to see flat to dropping prices, “as they tend to be impacted by seasonal effects more strongly than the Black Knight HPI,” as they include short and REO sales that are more prone to seasonal volatility.”Going forward we should see positive growth in 2014 but at a more moderate pace compared to 2013.  Somewhere between 2-4 percent for the year is likely,” he said. Servicers Navigate the Post-Pandemic World 2 days ago Share Save  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Tagged with: Black Knight Financial Services Case-Shiller Growth Home Prices Previous: Rosenberg & Associates Welcomes 2 New Attorneys Next: First Mortgage Balances See Largest Increase in Six Years Demand Propels Home Prices Upward 2 days ago Black Knight Financial Services Case-Shiller Growth Home Prices 2014-03-24 Tory Barringer Unchanged Home Prices Raises Questionscenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily March 24, 2014 809 Views Home / Daily Dose / Unchanged Home Prices Raises Questions The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 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 agolast_img read more

Total Home Flipping Down Yearly, but Profit Increases

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Sign up for DS News Daily in Daily Dose, Featured, Headlines, Market Studies, News June 4, 2014 1,632 Views About Author: Colin Robins Previous: Credit Union Lending Jumps in Q1 2014 Next: Millennials Use ‘Bank of Mom and Dad’ for Down Payment Help Share Save Demand Propels Home Prices Upward 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News’ sister site. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Total Home Flipping Down Yearly, but Profit Increases 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 Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago In a blog post, RealtyTrac VP Daren Blomquist analyzed data from the company’s newly created and interactive, county-level heat map, which shows the returns on home flipping over the last 12 months in 1,050 counties nationwide. He found that although flipping was down nationally in the first quarter of 2014 compared to a year ago, flippers are making bigger profits per flip.In the first quarter of 2014, the average gross profit per flip was $55,574. The average gross profit per flip in Q1 2014 saw a 30 percent return on the initial purchase price. Gross profits increased year-over-year from $51,805 in the first quarter of 2013, a 28 percent return on investment.However, the total volume of flipped properties has declined, dropping from the previous year. Blomquist noted that 3.7 percent of all single-family homes sold this year were flips, compared to a 6.5 percent share of sales a year ago.He emphasized that flipping is not a guaranteed path towards wealth creation. “The average flip generated positive gross ROI in 833 of the counties analyzed (79 percent), but gross ROI on the average flip was flat or negative in 217 counties (21 percent)—demonstrating that profiting from property flipping is not guaranteed,” he said.Blomquist commented that one of the most important factors in a successful and profitable home flip is how much work will need to be performed on the house in order to resell it at a higher margin.The report cited the 14 best counties for flipping, which had to meet some specific criteria in order to qualify. To make the list, counties had to have at least 100 single-family homes flipped in the past 12 months, an average gross return of 30 percent or more, an unemployment rate below the national average of 6.7 percent, and experience an increase in foreclosure activity in the first quarter of 2014 compared to a year ago.The top counties by gross return on investment (GROI) in Q1 2014 include: Prince George’s County, Maryland (83 percent GROI); York County, Pennsylvania (72 percent); Baltimore, Maryland (71 percent); Campbell County, Kentucky (70 percent); and New Castle County, Delaware (53 percent).Blomquist found that by volume, many states most known for their foreclosure problems topped the list in total volume of flipped homes.From April 2013 to March 2014, the top five counties with the most flipped homes included: Maricopa County, Arizona (4,632); Los Angeles County, California (3,610); Douglas County, Nebraska (3,095); Duval County, Florida (2,803); and Clark County, Nevada (2,542). Home / Daily Dose / Total Home Flipping Down Yearly, but Profit Increases Home Flipping Profits RealtyTrac ROI 2014-06-04 Colin Robins Tagged with: Home Flipping Profits RealtyTrac ROIlast_img read more

Freddie Mac: Households, Businesses Should Take Advantage of Positive Housing Opportunities While They Last

first_img Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Freddie Mac: Households, Businesses Should Take Advantage of Positive Housing Opportunities While They Last The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Freddie Mac cited a number of positive opportunities for housing to start 2015, but households and businesses should take advantage of them because those opportunities may be limited, according to the GSE’s January 2015 U.S. Economic and Housing Market Outlook released on Tuesday.Among the positive tailwinds for housing to start the year are the refinancing opportunities available. Among conventional 30-year fixed mortgage agency mortgage-backed securities (MBS), $361 billion had a 4.5 percent coupon and another $479 billion had a coupon higher than 4.5 percent. Many of those MBS had a rate higher than 5 percent, giving borrowers a strong incentive to refinance at the current 30-year fixed annual rates, which averaged a below-expected 4.17 percent in Freddie Mac’s latest Primary Mortgage Market Survey.The most important positive tailwind for housing, however, is job growth. Payrolls increased by an average of 246,000 per month in 2014 compared to just 194,000 per month in 2013, according to the Bureau of Labor Statistics. The unemployment rate fell by the course of 1.1 percentage points during the course of 2014 down to its latest reported rate of 5.6 percent for December, the lowest level it has been in six and a half years. The drop in unemployment rate over 2014 reduced the amount of unemployed persons in the United States by 1.7 million, according to BLS.It was not such a positive year for wage growth, however, as wages increased by only 1.7 percent, barely keeping up with inflation, according to BLS. However, the latest Conference Board Consumer Confidence Index in December reported the highest level of consumer confidence since February 2008. Lower gas prices have also given American consumers anywhere from a $125 to $200 billion stimulus, according to economists’ estimates.”On balance there are a lot of positive opportunities in the U.S. economy at the start of the year, and the real question is whether or not households and businesses will be able to seize these opportunities and make the most of them,” said Frank Nothaft, Freddie Mac VP and chief economist. “The reprieve in interest rates and drop in gas prices should help to spur economic growth. Until rates start to rise later in the year, housing markets should respond positively and we anticipate increases in home sales and continued improvement in construction activity. With rates lower at the beginning of the year, we’ll see higher than expected refinance volumes as well.”The report stated that households and businesses should take advantage of these positive opportunities now, because they may not last. Unexpected weakness in the global economy and uncertainty in foreign markets has resulted in a flight to the relative safety of the U.S. Treasury, which in turn has resulted in lower mortgage interest rates and gas prices as well as a drop in inflation domestically.”Over time the global economy should stabilize and many of these trends may reverse themselves,” Nothaft wrote in the report. “In addition, domestic economic policy, particularly by the Federal Reserve, has the potential to affect interest rates. We expect to see the relatively low interest rates of the past few weeks persist for the first two quarters of the year, but then start to move higher in the second half.”The refinance share has been adjusted higher by 9 percent due to lower-than-expected mortgage rates, according to Freddie Mac. Much of the increase in refinance share can be attributed to the spike in refi activity.”The economy has a great opportunity to expand in 2015,” Nothaft wrote. “The reprieve in interest rates and drop in gas prices should help to spur economic growth. Until rates start to rise later in the year, housing markets should respond positively and we anticipate increases in home sales and continued improvement in construction activity. With rates lower at the beginning of the year, we’ll see higher than expected refinance volume, but expect refinance volume to drop quickly as rates rise.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 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. About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago January 20, 2015 1,383 Views center_img Previous: Four Banks Reach $2.7 Million Settlement With Massachusetts AG Over Foreclosure Violations Next: Gap Widens Between Non-Foreclosure Solutions and Foreclosure Sales Employment Freddie Mac Housing and Economic Outlook Housing Market U.S. Economy 2015-01-20 Brian Honea Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Employment Freddie Mac Housing and Economic Outlook Housing Market U.S. Economy 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 Subscribe in Daily Dose, Featured, Market Studies, News Freddie Mac: Households, Businesses Should Take Advantage of Positive Housing Opportunities While They Lastlast_img read more

Divisiveness of Dodd-Frank is Evident Five Years After Its Passage

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: CFPB CoreLogic Dodd-Frank Mortgage Servicing Rules TRID Divisiveness of Dodd-Frank is Evident Five Years After Its Passage Previous: Millennial Desire for Homeownership is Strong, But Financial Hurdles Persist Next: Ocwen Engages in Community Outreach to Help Distressed Borrowers Home / Daily Dose / Divisiveness of Dodd-Frank is Evident Five Years After Its Passage Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago Subscribe  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago August 21, 2015 1,227 Views About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago CFPB CoreLogic Dodd-Frank Mortgage Servicing Rules TRID 2015-08-21 Brian Honea 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. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save The controversial Dodd-Frank Wall Street Reform and Consumer Protection Act just passed its five-year anniversary on July 21, and lawmakers and other stakeholders have never been more divided as to its effectiveness (or lack thereof) as they have been recently, according to CoreLogic’s August 2015 MarketPulse released this week.In a piece titled “The Dodd-Frank Act Turns Five: The Lingering and Lasting Effects,” CoreLogic’s policy research and strategy analyst Stuart Quinn examined several new regulatory changes brought about by the 2,239-page law, including the establishment of the Consumer Financial Protection Bureau (CFPB), the new servicing rules, and the TILA-RESPA Integrated Disclosure Rule.”The half-decade anniversary of the Dodd-Frank Act has further amplified its divisiveness, with legislators from both sides of the House hitting the speaking circuits to either magnify the blemishes or tout the progress,” Quinn wrote.The CFPB is the most notable of the agencies established by Dodd-Frank; others include the Office of Financial Research at Treasury, Office of Housing Counselors at HUD, and the Office of Credit Ratings. The CFPB, which opened in July 2011, now has approximately 1,537 full-time employees. One camp in Congress has championed the CFPB as a necessary entity in order to protect consumers from predatory financial practices, particularly in the mortgage industry, where the Bureau has handed out billions in fines and penalties. The other camp views the Bureau as unaccountable and overreaching and has questioned the legitimacy of the appointment of its director, Richard Cordray, a process that took two years.”The half-decade anniversary of the Dodd-Frank Act has further amplified its divisiveness, with legislators from both sides of the House hitting the speaking circuits to either magnify the blemishes or tout the progress.” — Stuart Quinn, CoreLogic policy research and strategy analystThe CFPB’s mortgage servicing rules, which were enacted in January 2014, contained provisions similar to those in the 2012 National Mortgage Settlement between 49 states (all but Oklahoma) and the District of Columbia and the federal government with five banks and/or mortgage servicers (Bank of America, Citi, JPMorgan Chase, the ResCap Parties, and Wells Fargo).”The cost of servicing, particularly non-performing servicing, has continued its upward trajectory and foreclosure timelines in specific jurisdictions remain protracted despite large declines in volumes since 2010,” Quinn wrote. “Five years later, the question remains whether true national servicing standards have been attained and if they are even a realistic goal? The divergence between performing and non0performing servicing continues to beg the question of whether the appropriate compensation is in place.”Many of Dodd-Frank’s rules have either not been finalized or not yet taken effect, such as the TILA-RESPA Integrated Disclosure (TRID) rule, which reconciles the differences between two forms completed by borrowers in the closing of a mortgage loan (the Loan Estimate form and the Closing Disclosure form) into language that is easy for the borrowers to understand. Many industry stakeholders have expressed no small amount of concern over being compliant in time for TRID’s effective date, which was originally scheduled for August 1. The CFPB pushed the date back to October 3 due to an “administrative error.””And while mortgage reforms continue to be implemented, the results are difficult to measure doe to the absence of a true private-label securitization market, inaction on GSE reform, GSE credit policy changes, and the pristine credit quality of originations in the post Dodd-Frank era,” Quinn wrote. Related Articleslast_img read more

Watchdog Audit Finds HUD’s Policies Did Not Ensure HECM Borrower Compliance

first_img The Best Markets For Residential Property Investors 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. Subscribe Tagged with: Home Equity Conversion Mortgages HUD HUD Office of Inspector General HUD Office of Single-Family Reverse Mortgages Servicers Navigate the Post-Pandemic World 2 days ago Related Articles In a recent audit of HUD’s oversight of the Department’s Home Equity Conversion Mortgage (HECM, or reverse mortgage) program, HUD’s Office of the Inspector General (OIG) found that HUD’s policies did not always ensure that borrowers complied with residency requirements, according to a release from the HUD OIG.As a result of borrowers’ non-compliance with the residency requirements, the HUD OIG recommended that these loans be declared in default and payable.The OIG’s objective in the audit was to determine whether HUD’s Office of Single-Family Housing had effective controls in place to ensure that borrowers in the HECM program were complying with residency requirements while they were concurrently receiving assistance from HUD’s multifamily programs with rent. The strategic objective of the HUD OIG is to “protect the integrity of housing insurance and guarantee programs and because of residency issues identified in the prior audits of the HECM program.”The OIG found that in the audit that up to 67 of the 68 borrowers selected for review were not living in the properties associated with their loans because they were receiving assistance with rent at a different address from HUD’s multifamily programs. According to the OIG, servicing lenders independently terminated 18 of the 67 loans during the audit.”We recommend that HUD direct the applicable servicing lenders to verify borrowers’ compliance with the residency requirements or for each noncompliant borrower, declare the loan in default due and payable, thereby putting up to $15.7 million to better use.”The remaining 49 loans were found to have current balances totaling $7.1 million with maximum claim amounts of more than $8.4 million, and as a result those 49 loans should be declared in default and due, and should be payable in order to reduce the risk of loss to HUD’s up to $1.3 million insurance fund.Also according to the OIG, if HUD cannot confirm that borrowers on an additional 642 loans that may have violated residency requirements  are complying with those requirements, the loans should be declared in default and due, and should be payable in order to reduce the risk of loss to HUD’s up to $14.4 million insurance fund.The OIG said these conditions existed because HUD’s Office of Single-Family Housing did not have controls in place to prevent them.”We recommend that HUD direct the applicable servicing lenders to verify borrowers’ compliance with the residency requirements or for each noncompliant borrower, declare the loan in default due and payable, thereby putting up to $15.7 million to better use,” the OIG wrote in the report. “Further, we recommend that HUD implement controls to prevent or reduce instances of borrowers violating residency requirements by concurrently participating in multifamily programs.” About Author: Brian Honea Demand Propels Home Prices Upward 2 days ago August 27, 2015 882 Views The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Watchdog Audit Finds HUD’s Policies Did Not Ensure HECM Borrower Compliance Data Provider Black Knight to Acquire Top of Mind 2 days ago 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 Demand Propels Home Prices Upward 2 days ago Previous: Pending Home Sales Rise for the Sixth Time in Seven Months Next: Steady Outflow is Driving Continuous Decline in Foreclosure Inventory Share Save Watchdog Audit Finds HUD’s Policies Did Not Ensure HECM Borrower Compliance Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Government, News Home Equity Conversion Mortgages HUD HUD Office of Inspector General HUD Office of Single-Family Reverse Mortgages 2015-08-27 Brian Honealast_img read more

Banks Need to Take Precautions With Credit Risk to Avoid Repeat of Financial Crisis

first_imgHome / Daily Dose / Banks Need to Take Precautions With Credit Risk to Avoid Repeat of Financial Crisis Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe About Author: Brian Honea Share Save Servicers Navigate the Post-Pandemic World 2 days ago November 2, 2015 1,202 Views in Daily Dose, Featured, Government, News Banks Need to Take Precautions With Credit Risk to Avoid Repeat of Financial Crisis Banks Credit Risk OCC 2015-11-02 Brian Honea Servicers Navigate the Post-Pandemic World 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Related Articles Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Tagged with: Banks Credit Risk OCC 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: Will Weakening the FSOC Put the Country at Risk of Another Financial Crisis? Next: House Postpones Vote on Proposal to Cap Salaries of Fannie Mae, Freddie Mac CEOs Data Provider Black Knight to Acquire Top of Mind 2 days ago Banks need to take steps now to avoid emerging credit risk in today’s financial system in order to prevent another financial meltdown, according to Comptroller of the Currency Thomas Curry in a public address on Monday.In a speech at the RMA Annual Risk Management Conference in Boston, Curry stated that the topic of credit risk was muted as recently as 2012 because banks were still in a post-crisis state of recovery and were being extremely cautious with lending—some believe too cautious. Three years ago, however, the need to discuss credit risk was minimal because loan demand was soft, consumer confidence was down, and businesses were reluctant to make loans to only the most creditworthy borrowers.In the last 18 months, however, banks have generally become profitable as economic conditions have improved, unemployment is down, and loan demand has increased, leading Curry to ask: “Where do we go from here? What will it take to ensure that banks remain solvent, stable, and secure in their role in the payments and credit system?”Curry pointed out that the increased regulation of today is designed to prevent another financial crisis similar to the one in 2008; however, he said, things do not need to get to that point if the right decisions are made today in the financial system, particularly in the area of credit risk by banks.While banks are prospering, however, they have created some credit risk concern by loaning to customers who almost certainly would not have qualified four or five years ago because of the risk they pose, Curry said.“Many banks have made a conscious decision to increase their risk appetite and take on additional credit risk,” Curry said. “They are doing this in part because in times of economic growth banks feel confident that they can. But they are also targeting less creditworthy customers and offering easier terms and conditions because they feel that they must, in order to hold their own against the competition for loan growth, market share, and revenue.”“We can ensure a safe and sound banking system and avoid crises if we take sensible and toughminded steps now to address the emerging risks I’ve discussed today.”—Thomas CurryCredit risk is showing up now in banks in two classic forms, according to Curry: that of relaxed underwriting and increased loan concentrations. While banks with increased loan concentrations and eased underwriting standards always prosper for a time, there will eventually be a “day of reckoning,” Curry said. As a regulator, Curry said, his job is to raise awareness of the credit risk these conditions pose before things reach that point.“At present, these concentrations flash yellow lights rather than red ones, and, as I’ve noted, credit quality has not suffered significantly as a result,” Curry said. “Our job as supervisors is to ensure that things stay that way.”Curry said he would like to see banks take the initiative to address concentration risk on their own, without supervisory action, and stated that the OCC has provided tools to help them do so. He urged risk managers to carefully examine their respective banks’ loan loss allowance to see if it is appropriate for the level of risk their bank is taking on.“We’ve been through a long period in which banks have been steadily reducing reserves,” Curry said. “Just over the last two years, the key ratio of the loan loss allowance to total loans dipped by more than 40 percent. Although banks have argued, with some justice—and please note the qualification—that improvements in loan quality justified those reserve releases, drawdowns of that magnitude are clearly disproportionate.”Curry stated it was clear to him that the reserves needed to be raised in order to account for the increasing credit risk in the financial system today“We can ensure a safe and sound banking system and avoid crises if we take sensible and toughminded steps now to address the emerging risks I’ve discussed today,” Curry said.last_img read more

BNY Mellon Posts Positive Financial Results in Q3 Despite RMBS Litigation Difficulties

first_img Bank of New York Mellon Earnings Statements Profits Residential Mortgage-backed securities 2015-10-20 Brian Honea Tagged with: Bank of New York Mellon Earnings Statements Profits Residential Mortgage-backed securities Home / Daily Dose / BNY Mellon Posts Positive Financial Results in Q3 Despite RMBS Litigation Difficulties The Bank of New York Mellon Corporation reported a net income of $820 million for the third quarter of 2015, an increase of 16 percent year-over-year on an adjusted basis, according to the bank’s Q3 2015 earnings statement released on Tuesday.The increase in net income during Q3 made it a positive quarter for the bank despite a lawsuit filed by the FDIC in August accusing the bank of breaching its duties as a bond trustee for $2 billion in residential mortgage-backed securities and despite having their own lawsuit against JPMorgan Chase over toxic RMBS dismissed.BNY Mellon’s net income for Q3 last year was $734 million, adjusted for the gains of sales on the bank’s investment of Wing Hang Bank Limited and the One Wall Street Building, net of litigation and restructuring charges. Though the bank’s net income was up year-over-year in Q3 2015, it dropped slightly from Q2’s adjusted net income of $868 million.“Our third quarter results reflect our focus on delivering significant value to our shareholders in all market environments,” said Gerald L. Hassell, chairman and CEO of BNY Mellon. “We are executing on our strategic priorities, which helped us to generate more than 370 basis points of positive operating leverage year-over-year and to remain on track to achieve the three-year targets we shared on Investor Day a year ago. We are enhancing our risk management and regulatory compliance practices, investing in technology platforms for the future and have onboarded employees associated with two strategic relationships while simultaneously controlling expenses.”“Our third quarter results reflect our focus on delivering significant value to our shareholders in all market environments.”—Gerald HassellThe bank’s total revenue of $3.8 billion for Q3 was an increase of 1 percent year-over-year on an adjusted basis. Nonperforming residential mortgage loans declined for BNY Mellon in Q3 2015 to $103 million, down from $110 million in Q2 2015 and from $113 million in Q3 2014. The bank returned more than $875 million to shareholders in the form of share repurchases and dividends, according to the announcement.BNY Mellon had a tough quarter in the area of RMBS litigation during Q3. The FDIC sued BNY Mellon in August, claiming the bank breached its duties as bond trustee for $2.06 billion worth of residential mortgage-backed securities purchased by an FDIC-insured bank in Texas which later failed. In September, a New York Supreme Court judge dismissed a $600 million suit filed by BNY Mellon against JPMorgan Chase and a unit of General Electric Capital over $1.275 billion worth of toxic residential mortgage-backed securities. In that suit, BNY Mellon accused JPMorgan of misrepresenting the quality of loans packaged in an RMBS trust for which BNY acted as securities administrator; the judge ruled that the case was time-barred. October 20, 2015 4,707 Views The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 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. Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago BNY Mellon Posts Positive Financial Results in Q3 Despite RMBS Litigation Difficultiescenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Related Articles 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 Demand Propels Home Prices Upward 2 days ago Previous: Ask the Economist: Consumers, Labor Market Improvements Have Built Momentum in Housing Next: DS News Webcast: Wednesday 10/21/2015 Sign up for DS News Daily About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

A New Beginning for FHA With Brian Montgomery at the Helm

first_img Previous: Roadblocks Ahead for Credit Union Legislation Next: Dimon Speaks: Mortgage Industry Could be $2 Trillion Higher  Print This Post Data Provider Black Knight to Acquire Top of Mind 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] Tagged with: FHA Commissioner Servicers Navigate the Post-Pandemic World 2 days ago September 13, 2017 2,327 Views Share Save The Best Markets For Residential Property Investors 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles A New Beginning for FHA With Brian Montgomery at the Helmcenter_img Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / A New Beginning for FHA With Brian Montgomery at the Helm About Author: Brianna Gilpin Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago It’s been rumored since May that Federal Housing Administration (FHA) veteran Brian Montgomery could possibly be returning to his post under the Trump administration, but now the speculations have been upheld. As of Wednesday morning, Montgomery, who served under George W. Bush for eight years, has been nominated as the Assistant Secretary of Housing and Urban Development, Federal Housing Commissioner.Montgomery, who now operates as Vice Chairman of The Collingwood Group, a Washington D.C.-Based Advisory Firm that he co-founded, served as Deputy Assistant to the President from 2001 to 2005. After serving under the Bush Administration, he continued at his post six months into former President Barack Obama’s leadership before resigning in July of 2009.During his time as FHA Commissioner, his primary focus was the creation and implementation of a bill that would modernize the FHA, an issue that is still looming over the administration. The Bill, which was passed in the House July 2006, increased loan limits, updated down payment assistance options, and added a risk-based premium structure.In addition, Montgomery worked closely to educate African-Americans who had interest in buying their first homes, and was the 2008 recipient of the Robert J. Corletta Award, which pays tribute to those who have shown extraordinary creativity and dedication to the cause of affordable housing.“Having had the privilege of knowing Brian Montgomery for many years, I can testify to his ample qualification to lead the Federal Housing Administration,” said Five Star Institute President and CEO Ed Delgado. “With his return to public service, FHA is gaining a strong and steady hand that will serve it well as it formulates responsive policy in the wake of Hurricanes Harvey and Irma. I applaud the Administration’s choice.”One of the matters Montgomery will be taking on involves the suspension of the proposed mortgage insurance rate cut required for all FHA-backed loans—a decision made a mere hour after President Trump took office in January. Ben Carson, Secretary of HUD, said, at the time, that he was surprised by the cut and would work with the FHA administrator and other financial experts to examine the policy, however, the suspension came before Carson’s confirmation.Though the policy may be a concern for first-time and low-income homebuyers, it could be one of the many things Montgomery plans to address, as he has already raised concerns about mortgage regulation.”To restore housing to its traditional role as an engine of economic growth and opportunity, the incoming Trump administration should pursue policies designed to make the path to homeownership possible again for fully-informed prospective buyers who have the ability to carry a mortgage,” Montgomery wrote to POLITICO in November. in Daily Dose, Featured, Government, News Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily FHA Commissioner 2017-09-13 Brianna Gilpinlast_img read more

Pope Francis praises his predecessor

first_img Google+ By News Highland – March 15, 2013 News Pope Francis says his predecessor Benedict has ‘enriched and invigorated’ the Catholic Church. During an audience with the cardinals, Pope Francis paid a heart felt tribute to Benedict.Pope Francis is the first prelate from the new world and the first Jesuit to the papacy.Pope Francis intends on visiting Benedict at the papal residence in Castel Gandolfo, south of Rome. The date for this visit has not been set yet. Calls for maternity restrictions to be lifted at LUH 448 new cases of Covid 19 reported today Previous articleThree men appear at Derry Magistrates CourtNext articleFacebook worst social networking site for bullying News Highland Google+ Pinterest Twitter Twitter Three factors driving Donegal housing market – Robinson center_img Facebook WhatsApp RELATED ARTICLESMORE FROM AUTHOR Pope Francis praises his predecessor Help sought in search for missing 27 year old in Letterkenny Facebook NPHET ‘positive’ on easing restrictions – Donnelly WhatsApp Pinterest Guidelines for reopening of hospitality sector publishedlast_img read more

Senator Norris to visit Donegal to speak about his candidacy

first_img NPHET ‘positive’ on easing restrictions – Donnelly RELATED ARTICLESMORE FROM AUTHOR Google+ Calls for maternity restrictions to be lifted at LUH Pinterest Almost 10,000 appointments cancelled in Saolta Hospital Group this week Three factors driving Donegal housing market – Robinson Facebook Twitter Pinterest Guidelines for reopening of hospitality sector published Google+center_img Senator Norris to visit Donegal to speak about his candidacy News WhatsApp Presidential Hopeful Senator David Norris says he wants to visit Donegal to meet people, particularly those who disagree with him and would not support his candidacy.Earlier this week, Senator Norris embarked on the quest to secure the support of either four local authorities or 20 Oireachtas members.Speaking on today’s Shaun Doherty Show, he repeated his belief that people are bored with his sexuality, and it should not have any impact on his candidacy.Senator Norris says he is proud to be a liberal:[podcast]http://www.highlandradio.com/wp-content/uploads/2011/03/norrs1pm.mp3[/podcast] Twitter LUH system challenged by however, work to reduce risk to patients ongoing – Dr Hamilton By News Highland – March 16, 2011 Previous articleSoccer – Fanad Lose Out To Salthill In CupNext articleOmagh fire tragedy house demolished today News Highland Facebook WhatsApplast_img read more

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