May 2021

Housing Market Weathering Ongoing Headwinds

first_img Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Delinquency Rates Nationwide U.S. Housing Market 2016-06-28 Brian Honea The national U.S. housing market is sustainable, despite slower-than-expected household formations and the slowdown in energy sector jobs, according to the latest Health of Housing Markets report from Nationwide Insurance.Much of the reason for the optimism lies in the fact that delinquency rates are down nearly across the board and are zeroing in on pre-bust levels, Nationwide reported.  Though the report did not cite specific numbers, graphics indicate heartily decreasing delinquency rates in almost all markets eat of the Mississippi, with notable declines in the Northeast and Florida.Steady declines in delinquency in the western half of the U.S. were also generally good, though delinquency rates were on the rise in that far southwestern ends of Arizona and California.Regionally, however, the housing markets in the vast majority of metropolitan statistical areas were deemed sustainable, suggesting that most local housing markets are unlikely to see declines in the near term.  Job and mortgage market conditions steadily improved as well, helping to boost housing sustainability in much of the country, the report stated.”We are seeing positive signals for homeowners, as well as local economies, in most metro areas.”David Berson, SVP and Chief Economist, NationwideHowever, there are some job concerns. Energy sector slowdowns are weighing on job growth and housing sustainability for a number of metros in energy-intensive areas, especially in North Dakota, Wyoming, and Texas. Nationwide’s assessment matches very closely to stats released by Arch Mortgage Insurance Tuesday that housing markets in these areas are at higher risk for seeing price declines over the next two years.Overall, though, the health of the U.S. market remained steady at just north of 100 on Nationwide’s index. The current value of 104.3 is the lowest level in two years, but an index value over 100 suggests “that the national housing market is healthy, with lower chances of a housing downturn over the next year as the index moves increasingly above the 100 break-even value,” the report stated.”We are seeing positive signals for homeowners, as well as local economies, in most metro areas,” said David Berson, Nationwide’s senior vice president and chief economist. “The drop in serious mortgage delinquency rates supports sustainable home price gains and housing activity. The more sustainable housing markets should allow for positive feedback loops in local economies, with strengthening job and income gains for residential real estate agents, mortgage bankers and home improvement workers.” Home / Daily Dose / Housing Market Weathering Ongoing Headwinds Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He’s been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing.  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago tweet Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Scott Morgan Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Housing Market Weathering Ongoing Headwinds June 28, 2016 1,652 Views Previous: Millions of Boomers Prefer to Rent Next: Demand Retreats Despite Stronger Fundamental Drivers Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Tagged with: Delinquency Rates Nationwide U.S. Housing Marketlast_img read more

Will New Reverse Mortgage Policies Reverse Concerns?

first_imgHome / Daily Dose / Will New Reverse Mortgage Policies Reverse Concerns? Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News Reverse mortgages have the potential to become more popular as more households with insufficient income reach retirement, according to a study done by the Center for Retirement Research at Boston College.Despite the possibility for increased popularity of reverse mortgages, or HECMs (Home Equity Conversion Mortgages), concerns have risen over an increased default rate for borrowers.To respond to the concerns, the report states that HUD, starting in 2013, began restricting initial withdrawals as well as introducing criteria for underwriting. With these policy changes, property taxes as well as insurance default could potentially reduce by 50 percent.The report states one of the concerns about implementing underwriting criteria is that it could significantly reduce the take-up of loans, therefore possibly conflicting with the program’s public mission to balance the goals of high take-up rates as well as low default rates.However, the simulated impact of credit-based underwriting standards on these loans’ take-up is estimated to be minimal, especially when such standards are paired with a required set-aside for tax and insurance payments instead of a hard cutoff.The report states that the collective impact of both policies could reduce take-up by 12 percent attributed to the restrictions on the initial withdrawal amount instead of the underwriting criteria. Yet, this impact on take-up is relatively minuscule for a larger reduction in estimated defaults.In order to assess the effects of the new rules, the report used a “unique” data-set linking borrower characteristics to their loan activity and the results showed that the new rules could reduce default rates by up to 50 percent while having only a small impact on take-up.Additionally, the study relied on data that compared a variety of borrowers on a large scale. The data found concluded that newer policies are helping reduce default rates across the board.Though, only 2 percent of older Americans who qualify currently hold a reverse mortgage, it has been projected that demand for these home loans in the past five years has exponentially increased. The Best Markets For Residential Property Investors 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 Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago July 20, 2016 1,196 Views center_img  Print This Post Previous: HUD Reports Continued Progress For Housing Recovery Next: Real Estate is Becoming the Prefered Long-Term Investment Related Articles Demand Propels Home Prices Upward 2 days ago Reverse Mortgages take-up 2016-07-20 Kendall Baer Demand Propels Home Prices Upward 2 days ago Share Save Tagged with: Reverse Mortgages take-up Will New Reverse Mortgage Policies Reverse Concerns? Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, TX. Born and raised in Texas, Kendall now works as the online editor for DS News. About Author: Kendall Baer Subscribelast_img read more

Protecting Mortgage Consumers from Watchful Eyes

first_img The Best Markets For Residential Property Investors 2 days ago Previous: Investors: Check Out the Latest SFR Market Stats Next: Senate Banking Committee Mulls Powell and Montgomery Noms The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Home / Daily Dose / Protecting Mortgage Consumers from Watchful Eyes Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Rachel Williams  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Protecting Mortgage Consumers from Watchful Eyescenter_img In a recent letter, the National Association of Federally-Insured Credit Unions (NAFCU) asked the Consumer Financial Protection Bureau (CFPB) to excluded more Home Mortgage Disclosure Act (HMDA) data from public disclosure.HMDA requires financial institutions to maintain, report, and publicly disclose information about mortgages. You can view the CFPB’s HMDA data by clicking here.Speaking on behalf of the organization, NAFCU’s Regulatory Affairs Counsel Andrew Morris proposed these disclosure changes to ensure sensitive consumer financial information was adequately safeguarded.”HMDA’s statutory purpose does not specify that the public should be able to dissect every aspect of a lender’s underwriting process, and while NAFCU understands that transparency is valuable, there is a point at which the risks to privacy outweigh the benefits of expanded disclosure,” Morris wrote. “NAFCU believes that the proposed policy guidance does not strike the correct balance.”Morris sentiments echo those of many in the industry who have expressed concerns about better protecting data after the recent high-profile Equifax breach. According the NAFCU, failure to take further precautions with HMDA data could “elevate the risk of fraud, identity theft, or embarrassment for individual borrowers or applicants.”Final HMDA rule changes will take effect on January 1, with the bulk of data submissions due in 2019.To learn more about NAFCU’s letter, click here. in Daily Dose, Featured, Government, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago November 27, 2017 1,290 Views Share Save Tagged with: CFPB HMDA HOUSING Loan mortgage NAFCU Servicers Navigate the Post-Pandemic World 2 days ago Rachel Williams attended Texas Christian University (TCU), where she graduated with Magna Cum Laude with a dual Bachelor of Arts in English and History. Williams is a member of Phi Beta Kappa, widely recognized as the nation’s most prestigious honor society. Subsequent to graduating from TCU, Williams joined the Five Star Institute as an editorial intern, advancing to staff writer, associate editor and is currently the editor in chief and head of corporate communications. She has over a decade of editorial experience with a primary focus on the U.S. residential mortgage industry and financial markets. Williams resides in Dallas, Texas with her husband. She can be reached at [email protected] The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago CFPB HMDA HOUSING Loan mortgage NAFCU 2017-11-27 rachelwilliams Subscribelast_img read more

The Next Generation of REO Agents

first_imgHome / Daily Dose / The Next Generation of REO Agents Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 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 On Thursday, in a webinar hosted by FORCE, Xome Agent Relations Director Jennifer Calvert discussed the best REO agent/broker practices, and gave an update on Xome’s growth through the decade.Calvert discussed how Xome is looking to expand its Xome Agent Network, which includes REO listings along with retail business and short sale listings for members. Much of this can be done through the XomePro app, including lead assignments and an appointment tracker.“We’re trying to simplify everything for the real estate partners that we’re working with,” Calvert said.Xome sellers have an option of three packages: Super Seller​, Premium Agent​, and Agent Direct. Super Seller is a full service agent with no seller commission​, Premium Agent includes reduced commission and traditional lead​, while Agent Direct allows agents to source their own leads by using the Xome Offer Market Place tool​.Benefits of these packages include REO Listings and Retail and Short Sale listing leads​ pre-qualified leads​, XomePro Mobile App to conveniently manage your Xome leads and customers​, concierge pre-qualified Buyers and Seller leads​, coaching & Training to help you generate more leads & close more transactions​, exposure from Mr. Cooper and Xome marketing spend​, Real Estate Market Trend Reports and cobranded marketing materials.There is no cost for the Super Seller package, as the buyer pays the commision, 5% of the auction buyer’s premium. Sellers are vetted by XomeXome Marketplace is Xome’s “next gen” marketplace, featuring exclusive listings, including residential default auctions.“Xome’s auction platform is growing tremendously,” Calvert said. “We know we compete with other platforms, but we take pride in what we do with our technology and our marketing.”Xome notes that it leverages a multi-channel marketing strategy to maximize market exposure and buyer demand.​ Buyers, as well as agents, are held accountable through the Buyer Performance Scorecard, meaning Xome makes sure that buyers are willing to do business.Those inteterested in Agent Membership can call 844.927.9284, or email [email protected] For more information, view the webinar recording here. Investment REO Xome 2019-12-19 Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Investment REO Xome The Next Generation of REO Agents December 19, 2019 2,902 Views Previous: New York’s Battle Against Zombie Homes Next: Studying Foreclosure Data by County Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News, REOcenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles About Author: Seth Welborn The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago  Print This Post Share Save The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily 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. Subscribelast_img read more

Maxine Waters Voices Concerns With Community Reinvestment Act

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Maxine Waters Voices Concerns With Community Reinvestment Act About Author: Mike Albanese The Best Markets For Residential Property Investors 2 days ago January 16, 2020 2,287 Views 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. Community Reinvestment Act House Financial Services Committee Opportunity Zones 2020-01-16 Mike Albanese Demand Propels Home Prices Upward 2 days ago Congresswoman Maxine Waters, Chairwoman of the House Financial Services Committee, sent letters to the Comptroller of the Currency and the Chairman of the Federal Deposit Insurance Corporation, requesting information on the systems and policies for the Community Reinvestment Act rulemaking process. “The Committee is concerned by reports alleging that certain special interest groups have submitted comments in other rulemakings while posing as consumers, small business owners, and other stakeholders,” Water wrote. “These fraudulent comments undermine legitimate debate on proposed rules by creating the false appearance that a position has widespread, grassroot support. …Given the critical importance of CRA to low- and moderate-income communities, the Committee is interested in ensuring any amendments to the CRA are made with full and accurate input from all interested parties.”The House Financial Services Committee said as the OCC and the FDIC have advanced proposals has the Community Reinvestment Act is implemented. The release states Waters and Committee Democrats have worked to ensure that the implementation of the law is not weakened. The Committee is concerned by reports alleging that certain special interest groups have submitted comments in other rulemakings while posing as consumers, small business owners, and other stakeholders,” Waters said in her letter. “These fraudulent comments undermine legitimate debate on proposed rules by creating the false appearance that a position has widespread, grassroots support. Such misrepresentations have been increasing in frequency and complexity in recent years.” Waters said in late 2019 that the Securities and Exchange Commission Chairman Jay Clayton quoted comments that were submitted under “suspicious circumstances” in a recent rulemaking. “In 2016, the Consumer Financial Protection Bureau’s efforts to receive comments regarding its payday lending rule were frustrated by an influx of over a million comments, many of which were allegedly created by trade groups to appear as if they came from concerned consumers,” she said. The Financial Services Committee will hold a hearing on January 29 titled, “The Community Reinvestment Act: Is the OCC Undermining the Law’s Purpose and Intent?”On December 19, 2019, the IRS published final regulations on Opportunity Zones. In a commentary on Bloomberg Tax, Forest David Milder partner in the law firm Nixon Peabody, LLP, discusses the highlights of the 544-page regulation publication.Key details Milder notes include the 180-day investing period, the “100% Substantial Improvement Rule,” and tax consequences of sales after 10 years, which Milder notes is the “biggest challenge of all.” Previous: FHFA: PACE Loans a Threat to GSEs? Next: HUD Releases $8.2B in Aid to Puerto Rico Maxine Waters Voices Concerns With Community Reinvestment Act The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Related Articles Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Tagged with: Community Reinvestment Act House Financial Services Committee Opportunity Zoneslast_img read more

‘Disproportionately Affected’: The Economic Impacts of COVID-19

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago July 2, 2020 1,180 Views 2020-07-02 Mike Albanese About Author: Krista F. Brock Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily in Daily Dose, Featured, News Previous: Tracking Foreclosures and Distressed Properties Next: DS5: Forecasting the Future of Housing The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago ‘Disproportionately Affected’: The Economic Impacts of COVID-19 Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Home / Daily Dose / ‘Disproportionately Affected’: The Economic Impacts of COVID-19 Minority and low-income households are more likely to have lost income due to the COVID-19 pandemic, as are households without a college education, according to Census data analyzed by Harvard’s Joint Center for Housing Studies (JCHS).In total 44% of households had lost employment as of the end of May. At the time, 7% of homeowners and 15% of renters reported they had not made their prior month’s house/rent payment, according to the latest data from the Household Pulse Survey conducted by the Census Bureau.JCHS found that the impacts of the pandemic are “incredibly broad” but that “some groups have been disproportionately affected.”“Minority, renter, lower-income households, and households without a college degree were more likely to suffer a decline in income and struggle to pay for their housing,” the JCHS reported.More than half of both Hispanic and African American households have lost income during the pandemic compared to 39% of white households. Among Hispanic households, 58% have lost income, while 53% of African American households reported a loss of income. Meanwhile, 44% of Asian/other households reported lost income.About half of households with an income of less than $25,000 and about half of households without a college degree have also reported income loss during the pandemic.High-income households have been less likely to experience income loss but are not exempt. More than one-third of households with an income of at least $100,000 has also experienced some amount of income loss. Also, one-third of households with a college degree have experienced some amount of income lost during the pandemic.Both renters and homeowners who were unable to make housing payments in the month prior to the survey were more likely to struggle to pay for essentials such as food. About 26% of homeowners who missed their mortgage payment and 42% of renters who missed their rent reported not having enough food.The good news is that among those who have experienced some income loss, the share who reported working sometime in the week prior to the survey has been on the rise. In the first and second week since mid-March 43% of those reporting income loss reported working within the past week. By week six, about 50% reported working within the past week.For these findings, the JCHS used data from the Household Pulse Survey but adjusted them so that they represented households rather than individuals. The JCHS suggested that the original Census data overestimates the impact of COVID-19 and that JCHS’s adjustments give a more accurate depiction. The Best Markets For Residential Property Investors 2 days ago Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. last_img read more

How Home Purchase Price Differences Could Widen Wealth Gaps

first_imgHome / Daily Dose / How Home Purchase Price Differences Could Widen Wealth Gaps  Print This Post Previous: CFPB Delays Mandatory Compliance of QM Rule Next: New Refi Option for GSE-Backed Mortgages Subscribe Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share 2Save in Daily Dose, Featured, Market Studies, News The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago How Home Purchase Price Differences Could Widen Wealth Gaps Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago A couple of real estate and finance experts are digging into three year’s worth of data to uncover how today’s housing market conditions could be creating an environment that intensifies the already significant homeownership and wealth gap between people of color and white Americans.Jessica Lautz, National Association of Realtors (NAR) VP of Demographics and Behavioral Insights, and Michael White, Nottingham Trent University Professor and Director of the Centre of the Built Environment have published a paper called  Mind The Gap examines the purchase price differences among homebuyers—using stats collected January 2014 to December 2017—who purchased a primary-residence property and how the purchase price can lead to further wealth gaps through equity in homeownership.They found that Hispanic and Black Americans purchased homes 11.2% and 10.6% less expensive, respectively, than white Americans when controlling for household income, home size, location, and down-payment help from family.Another group whose wealth stands to suffer as a result of home purchase prices is student-loan borrowers. Homebuyers who had student debt purchased homes that were 18.8% less expensive than those without student debt, the research found.”Homeownership is one of the best ways to build wealth and purchasing homes that are significantly less expensive can lead to lost wealth accumulation—and possibly lost homeownership—across generations,” the researchers reported.The authors added: “Through this backdrop of racial wealth differences, homebuyers post-Great Recession, face a housing market with waning housing affordability and an acute housing supply shortage for entry-level buyers. As a result, home prices have increased and ownership has become out of reach for many Americans. The home search time for first-time buyers or buyers with limited income can be arduous with limited inventory. This paper examines how the price of the home purchased among successful homebuyers who enter the housing market exacerbates these trends and further widens the homeownership and wealth gap.”Lautz and White suggest a number of policy steps—including financial literacy, refinancing student loans, expansion of mortgage financing through alternative credit scoring models, and expanding public awareness of low down payment programs—that may help mitigate the homeownership gap.The full paper is available through NAR.org.  The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago April 28, 2021 670 Views 2021-04-28 Christina Hughes Babb Sign up for DS News Daily Related Articles Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Christina Hughes Babb Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

The Sky’s the Limit With SFR

first_img Share Save Subscribe Bill Tessar Brian Flaherty Civic Financial Services COVID-19 Damon Riehl Danny Kattan Global Strategic Jay Tenenbaum Jeff Pintar Jeff Tennyson Jeffrey Tesch Kori Covrigaru Lima One Capital Mike Tamulevich Pintar Investment Company PlanOmatic Property Loan Exchange LLC RCN Capital Scottsdale Real Estate Investments Sell2Rent 2021-05-05 Eric C. Peck Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Phil Britt started covering mortgages and other financial services matters for a suburban Chicago newspaper in the mid-1980s before joining Savings Institutions magazine in 1992. When the publication moved its offices to Washington, D.C., in 1993, he started his own editorial services room and continued to cover mortgages, other financial services subjects, and technology for a variety of websites and publications. The Sky’s the Limit With SFR Servicers Navigate the Post-Pandemic World 2 days ago Previous: What is Motivating Distressed-Property Investors? Next: Despite Pandemic, Fewer Homeowners Missing Payments Demand Propels Home Prices Upward 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / The Sky’s the Limit With SFRcenter_img 24 days ago 842 Views Single-family home rentals remained a strong market for investors during the last year with good prospects ahead, despite the challenges for owners of other rental properties as a result of the COVID-19 pandemic moratoria.“The single-family home rental market is absolutely on fire,” said Jeff Pintar, CEO, Pintar Investment Company, echoing the sentiments of other market experts. “In all aspects of it, it’s continued to get stronger and stronger and has continued to evolve. The operational efficiencies of this business are actually far better than multifamily or other asset classes.”“Most of our customers are adding to their portfolios right now,” added Bill Tessar, President, Civic Financial Services.The current trend continues the recent strength of the single-family home rental market, experts agree.“Leading into the pandemic, the single-family rental market was booming based on volume, the appetite for it on Wall Street, and the price the secondary market was willing to pay,” Tessar noted.That’s not to say that the pandemic didn’t cause some challenges—at least briefly.“In March of 2020, we were growing quickly, hiring, and growing our platform significantly,” said Damon Riehl, CEO, Property Loan Exchange LLC. “In late March, essentially all our sources of product, the lenders that we partner with, halted their lending activities for a period of 60-90 days, with some even longer than that. It created an environment where we had clients with the demand, but we didn’t have product for them available. Then things started to improve in the fall.”Now, not only has the lending market returned to full speed ahead, in many ways the products’ pricing is superior to where it was pre-COVID-19.“I would say loan sizes and LTVs are almost exactly where they were,” Riehl added. “Rates are better than where they were pre-COVID-19, and more and more correspondent lenders have emerged as well.”Though Lima One Capital was hit hard at the start of the pandemic as loan volume came to a halt, what’s bounced back the strongest are the loans for rental properties, according to Jeff Tennyson, the company’s President and CEO.“Since the late ‘60s, 35% of the $25 trillion housing stock in America was consistently rental. The rental market has always had a very strong base,” Tennyson said. “COVID-19 has sent a message to real estate investors that a rental product is going to continue in good times and bad, in COVID-19 or with no COVID-19. People want to rent properties and participate those transactions.“The other thing that’s really driven the surge is that people are really starting to recognize they can work remotely,” Tennyson added.“If I’m working remotely, why do I need to be cooped up in a one-bedroom or studio apartment in an urban center? There are so many other places I could live and rent for better pricing and have much more room and a much better quality of life. That’s driving the demand for rental product all over the United States.”Moratoria ConcernsThough government-mandated moratoria have given struggling renters and homeowners the legal right not to make payments, there’s been very little impact on the single-family home rental market, stakeholders suggest.As long as landlords took care of properties and had a good relationship with tenants, most continued to pay their rents, according to Tessar. “When COVID-19 hit most of our competition, as much as 75% stopped lending and some of those never came back to the market. Many of those who did limped back.”“We’ve experienced less than a 2% delinquency rate for 2020 on our portfolio,” Pintar said. “People do whatever they can to protect their housing. By and large, people do the right thing. If they can pay their bills, they’re going to pay them.”Others that DS News spoke with agreed that delinquencies have been extremely low during the pandemic, anecdotally noting that few of their renters had taken advantage of the moratoria if they didn’t need to.Several single-family rental stakeholders interviewed agreed that government stimulus checks likely helped many renters avoid sliding into delinquency.Inventory shortages have remained one of the primary inhibiting factors impacting both the broader housing market and SFR in particular.Jeffrey Tesch, CEO, RCN Capital, told DS News, “There was already a shortage of single-family homes pre-pandemic, and then home listings declined substantially last year because of COVID-19 adding to the problem.Couple that with low mortgage rates, and competition for properties is at an all-time high throughout most of the country.” As a result, investors are caught up in the same bidding wars challenging other homebuyers.It’s more important than ever for investors to conduct their due diligence and remain “savvy,” Tesch suggests, “not getting caught up in the frenzy of the market, and [making sure that] the deal makes sense, so they can get a return on their investment.”Brian Flaherty, COO, Global Strategic, ticked off some of the ways that COVID-19’s impact continues to be a factor within the SFR industry, “With decreased rental revenues due to the moratorium, coupled with decreased inventory and high demand, the need to service clients and tenants while managing vendors and costs is more demanding than ever.” Flaherty said that he expects those pain points to shift over the coming months, with a lack of inventory possible being buoyed by an influx once foreclosure moratoria lift. “Then there will be the issues of how to manage an influx of inventory, and placing underemployed, unemployed, or foreclosed-upon tenants into rental units.”Pintar added that the economy is stronger than many people realize. As such, there are usually people ready to rent a single-family property even if the current tenant is forced to leave.Despite the challenges of COVID-19, none of Lima One’s rental loans went into delinquency, Tennyson said.Low Rates Continue to Help Drive Market StrengthThe interest rates for single-family investors as of April were lower than they were prior to the COVID-19 outbreak, according to Tessar, who credits Wall Street firms continuing to chase yield. Civic has business-purpose loans for the single-family rental with a sub-6% interest rate.Tessar expects interest rates to be up next year, so single-family rental investors will likely receive their best returns on investment before that happens.If rates were to go up 2%, it would create a “market event,” Riehl said, but market experts don’t expect that type of a jolt. Instead, most seem to expect moderate rate increases. When that happens, Riehl says that rent prices will increase to follow suit.The Federal Reserve is focused on keeping rates low for at least the next several months, which will accelerate market demand, said Jay Tenenbaum, Co-Founder and President of Capital Development at Scottsdale Real Estate Investments. “The only thing that changes this is if interest rates decided to go up, because the Fed says [interest rate easing] is over,” Tenenbaum said. In and of themselves, rising interest rates won’t signal a softness in the single-family rental market.However, if rates rise and there’s a large jump in defaults and foreclosures, the single-family home rental market will suffer.The low interest rates represent only one factor contributing to the continued strength of the SFR market. People and their jobs are more mobile than ever before, so a growing number of consumers don’t want to be tied down to a multiyear mortgage and the hassle of selling a property if they choose to move. Consumers are looking for more space for not only their families, but for home offices, remote schooling, etc. Multifamily properties can’t always meet these needs. So, returns for the single-family home rental market remain strong.Pintar and Tennyson also observed that homeownership isn’t the sign of success and stability that it once was. Many younger people are preferring to rent rather than tying up their money in a down payment in order to own a home.Kori Covrigaru, CEO, PlanOmatic, observed that “Most tech-savvy millennials and Gen Z audiences start their property searches online, and this has changed the way in which single-family rental properties are marketed today.” Covrigaru noted that digital tools such as 3D virtual tours and interactive floorplans hold strong appeal for younger buyers and renters, since they allow a consumer to visualize a home without having to step foot inside of it. “In many cases, the use of digital tools result in more property interest and faster leasing activity.”“Millennials in particular are having a significant impact on the market,” Tesch said. “You have younger millennials that are at or approaching the time when they are looking to be first-time homebuyers, and you have older millennials that seem to be in the market to buy-up or upgrade from their current home to accommodate growing families or move to a location to better suit their needs.”Danny Kattan, Founder and CEO of Sell2Rent, added that some seniors are also looking to sell and then rent back their single-family homes rather than using reverse mortgages because the latter option often involves fees and restrictions that the former option doesn’t.The sell-and-rent option can also work for people who want to have more available cash but can’t qualify for conventional cash-out refinancing, Kattan added.Another advantage of these properties over 1-4 family and multifamily units is that renters tend to stay longer, a trend that is increasing.“One of the largest things that that we’ve noticed is that the propensity for a tenant to renew their lease has significantly gone up,” said Mike Tamulevich, President, National Brokerage, Marketplace Homes. “Typically, we would average in the 60% range for the tenants that are going to renew. Now, we’re in the mid-to-high 70s, with another 10% going month to month.”In addition to the increase in renewals, rents are appreciating a little more than 4% annually, and the value of the properties themselves continues to grow. The gains are due to a combination of low interest rates and limited housing availability.“It’s an extremely strong market with plenty of applicants for a property once it comes back on comes back on the market,” Tamulevich said.In some areas, the values of home rental properties have been increasing by 10% annually, according to Riehl. However, he expects the appreciation in those markets to start to level off.“Rents are increasing at a higher a higher pace than we’ve ever seen,” Pintar added. “On average, we’re getting about a percent per year. The demand for quality rental housing is continuing to get stronger and stronger.”Migratory ImpactsPeople are continuing to move out of California and New York for areas where they can have lower taxes and lower cost of living, Tessar said. Those moves have been made easier by many companies opting to limit how many people need to be “in the office,” even as companies reopen. Additionally, some major firms have also moved out of those states—with employees often following—in search of lower tax costs.Homes in states with lower costs are often selling above list price, according to Tessar.“As soon as people move out, other people are moving in.”However, not all of the movement is to the South. Many investors are finding good value in areas of Pennsylvania, Tessar said.“There’s still a tremendous amount of dinged-up real estate that was taken back by the banks in the financial crisis.” Some of those single-family properties are in disrepair to the point that they don’t qualify for traditional financing, but companies like Civic, which specializes in the business loan purpose (BPL) arena, can provide interim financing for an investor to purchase the property, bring it up to code, and then resell it or then be able to qualify for conventional financing to live in it or rent it out.Regardless of the region, quality schools have been the top determining factor as to the community where younger families will rent, Tessar said. However, this could be changing somewhat as more private school options emerge, meaning a family isn’t as tied to a certain public school district.“A lot of people are starting to rent within the area that they want to live, but then picking up an investment property more on the outskirts where, where they might be able to get a decent yield,” Tamulevich said.“We saw the mass exodus of people from cities to the suburbs during the height of the pandemic, which caused a greater need for rentals,” Tesch noted. “We are seeing many young families looking to move out to the suburbs, but they are struggling because of lack of inventory and higher home prices, so affordability has become a concern. We’re also seeing other demographics starting to join the mix of folks that are driving rental demand. It’s pretty common now to see younger baby boomers, people in their late 50s, early 60s, looking to downsize and sell their homes at the height of the market, so renting is very attractive for that group as well.”Tesch listed Texas markets such as Dallas-Fort Worth and San Antonio as strong SFR areas, as well as parts of the Midwest such as Milwaukee, Cleveland, Indianapolis, Indiana, and Columbus, Ohio. Pittsburgh, Pennsylvania, and Evansville, Indiana, are two other good markets, according to Tenenbaum, who added that the middle-market, B- and C-class properties tend to offer the best value for single-family home investors.Pintar pointed to Austin (as did many others); Charlotte, North Carolina; Salt Lake City; several communities throughout Florida; Las Vegas; Phoenix; and, surprisingly, Bozeman, Montana, as dynamic communities that are also popular markets for SFR. Indianapolis, Indiana, has also proven to be a strong single-family home rental market.Regardless of the municipality, the Class A properties tend to be too expensive to earn a decent return, Tenenbaum explained. While some investors will look at price first and purchase Class D properties, that can be a mistake, as these properties tend to have unreliable tenants, are often vacant and, can require costly repairs.Property DifferencesRenters are typically looking for single-family rentals offering at least three bedrooms and 1.5 bathrooms, according to Pintar. However, some on the lower end of the market will consider two-bedroom, one-bathroom homes.Tamulevich said the appetite for two-bedroom homes for investors and renters alike has largely evaporated. As a result of the pandemic and people working from home and having to manage remote schooling, renters are increasingly looking for moderately priced, 2,000-square-foot homes offering four bedrooms and two or more bathrooms.One type of property that investors are largely steering clear of are condominiums. The initial investment, homeowner’s association fees, and other costs make it difficult to maintain positive cash flow on this type of rental property.Some investors are looking for properties they will rent out for only a short time, selling the property when the value appreciates sufficiently. Others look to build large portfolios of rental properties for ongoing cashflow. To do that, an investor needs large sums of capital, Riehl said.“If they have a significant capital base to do the number of projects they want, then they can decide on a property-by-property basis to hold it, to lock in cash flows with the low, fixed-rate mortgage, and not only re-capture the capital that they put into it, to use on the next deal, but also put $300 to $500 a month plus all the interest benefits and all the depreciation benefits of a rental.”Property Management ConcernsGood property managers are one of the major keys to success in the single-family home rental market, Tenenbaum said.His top advice for those looking to get started or expand in the single-family rental market: “Make sure your property management team is the cornerstone of your investing career. People who are local can do both (invest in the properties and manage them), but I invest all over the country. The local property management team can be the key to your success or the key to your downfall.”Property managers are the pulse of the investor’s portfolio, Tenenbaum explained.“They’re a wealth of information. They know the contractors, they know the values, they have better referrals to real estate agents than you can find yourself, unless they’re local to the area.”Good property managers will find responsible tenants. Poor ones will have more unrented properties, will have collection issues, etc., according to Tenenbaum.One way an investor can distinguish good property managers from poor ones is via their level of responsiveness, Tenenbaum said.“The sense of dedication and commitment to managing our assets goes hand-in-hand with communication. When I ask a question, I get a timely response. The response is complete. I know that they’re dedicated and efficient what they’re doing. “We’ve had the good, the bad, and the ugly with our properties’ managers.”With a responsive property manager, the investor stays informed about why properties are unoccupied, Tenenbaum added. He gives much of the credit for the excellent performance of his single-family rental portfolio in Evansville, Indiana, to his property manager there.Looking AheadThe single-family home rental market will remain strong for the foreseeable future, according to Tessar. “Next year, we’ll have a better idea of what’s going to be in this new tax bill. Everyone on the real estate side wants to understand what impact it’s going to have on capital gains and 1031 exchanges.”The next 12 months will also provide more clarity on how much of the work-from-home trend will remain, Tessar added.“The asset class is going to continue to evolve,” Pintar predicted. “You’re going to see a lot more communities being developed specifically for rent. There’s, there’s a lot of core capital that’s looking for safe, predictable returns. Outside of food and water, housing is people’s greatest essential need. Being able to deliver and provide a nice-quality product for people is always going to be in demand.”“What COVID-19 taught us all is that our work can be done remotely,” Flaherty observed. “Taking that reality and constructing an office plan and overhead reduction plan needs to be paramount for 2021 and beyond. Controlling costs with flexible work environments is bringing home office monitoring software and outsource solutions to the forefront. Also, having now been burned by an unforeseen pandemic, a focus on disaster planning, technology, and redundancy contingency planning needs to be factored into the bandwidth and budget of every company in any vertical, but particularly the SFR space, which will definitely feel the crunch of another tide shift soon.”Tennyson said that nonagency rental lending is a $40 billion market, providing a large opportunity for lenders like Lima One to provide loans “to improve the family neighborhoods so that others can live the American Dream.”Pintar added: “We can’t get these things built fast enough. Institutional investors that initially shied away from this product type are learning that the efficiencies of this asset class are better than any others. On a risk-adjusted basis, you’d be hard pressed to find a better opportunity than SFR.”On Wednesday, May 12, the Five Star Institute will present its Single-Family Rental Summit 2021, an in-person event at the Four Seasons Resort and Club Dallas at Las Colinas. The event will feature top subject matter experts and skilled SFR practitioners, leading discussion panels and training sessions answering questions and offering viable solutions related to property acquisition and management, financing, strategies for small, midcap, and large investors, and new developments related to technology and professional services.Click here for more information and to register for SFRS 2021. in Daily Dose, Featured, Journal, Magazine, News Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Phil Britt Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Tagged with: Bill Tessar Brian Flaherty Civic Financial Services COVID-19 Damon Riehl Danny Kattan Global Strategic Jay Tenenbaum Jeff Pintar Jeff Tennyson Jeffrey Tesch Kori Covrigaru Lima One Capital Mike Tamulevich Pintar Investment Company PlanOmatic Property Loan Exchange LLC RCN Capital Scottsdale Real Estate Investments Sell2Rentlast_img read more

Councillors want to name and shame litterers

first_img Previous articleRaymond McCartney selected as the vice-chair of Assembly justice committeeNext articleCommunity Allotments to be provided in Letterkenny from next year News Highland Councillors want to name and shame litterers By News Highland – April 13, 2010 Almost 10,000 appointments cancelled in Saolta Hospital Group this week Google+ WhatsApp Guidelines for reopening of hospitality sector published Google+ Donegal County Councilors have agreed that a name and shame policy and stiffer fines are the only way to tackle the issue of littering and illegal dumping.The issue was raised by Councilor Patrick McGowen with claims that the littering problem in Donegal has never been worsed.He says the level of anger amongst elected representatives was unpresidented:[podcast]http://www.highlandradio.com/wp-content/uploads/2010/04/gow.mp3[/podcast]Meanwhile Fianna Fail Councillor Dessie Larkin launched a scathing attack on the Minister for the Enviroment John Gormley.The says the green party leader has failed in his role and has lost any support he had with the country’s councils:[podcast]http://www.highlandradio.com/wp-content/uploads/2010/04/desl.mp3[/podcast] WhatsApp Twitter Pinterestcenter_img Calls for maternity restrictions to be lifted at LUH Pinterest Facebook Twitter Business Matters Ep 45 – Boyd Robinson, Annette Houston & Michael Margey News Facebook LUH system challenged by however, work to reduce risk to patients ongoing – Dr Hamilton RELATED ARTICLESMORE FROM AUTHOR Need for issues with Mica redress scheme to be addressed raised in Seanad alsolast_img read more

Two men charged following Laghey drug seizure

first_img Google+ Two men charged following Laghey drug seizure 365 additional cases of Covid-19 in Republic Main Evening News, Sport and Obituaries Tuesday May 25th Twitter WhatsApp Newsx Adverts Twitter Two men have been remanded in custody as gardai continue investigations into a €1.6 million haul of cannabis plants.Ming Sun, 44, and Xia Hua He, 34, both Chinese nationals, were charged with possession, possession with intent to supply and cultivation of cannabis in a warehouse at Trummon, Laghey, Co. Donegal, last Friday.Judge Kevin Kilrane remanded them in custody at a special sitting of Sligo District Court last night(Saturday) to Harristown District Court next Friday.No application for bail was made.Meanwhile, gardai continuing their investigation into the discovery of 2,000 cannabis plants, have said they were appalled at the primitive living conditions of two suspects.A senior Garda source said the men lived in squalid quarters inside a warehouse where the plants and growing materials were seized on Friday afternoon. Further drop in people receiving PUP in Donegal Facebook RELATED ARTICLESMORE FROM AUTHORcenter_img Google+ Man arrested on suspicion of drugs and criminal property offences in Derry WhatsApp Facebook Pinterest 75 positive cases of Covid confirmed in North By News Highland – May 27, 2012 Gardai continue to investigate Kilmacrennan fire Previous articleRelay for Life Donegal getting underway this eveningNext articleDefence forces helping to fight forest and gorse fires in Donegal News Highland Pinterestlast_img read more