In a hot housing market, gap between purchase price and appraiser condition ratings causes headaches

Last week, HousingWire reported surging mortgage volume and record low interest rates are putting excess pressure on appraisal turn times. This week, appraisal experts said those same variables are having a profound effect on an age-old conflict of appraisal reports versus what the market believes the home is worth.

In an accelerated environment with homes being bought and sold at a rapid pace and market data being pulled ahead of time, historical data can struggle to catch up and create broad differentials between an agreed-upon price and the value, said Mark Johnson, president of LRES Corporation.

According to Johnson, when markets accelerate quickly, the credit risk gap widens between the agreed-upon purchase price and what the data reflects and advises loan production teams to explore avenues to understand this delta.

“Most AMCs offer a process called a Reconsideration of Value Request, or ROV, that when properly presented, encourages the appraiser to review the work based on additional appropriate data submitted. To consider an ROV, appraisers are most often willing to review and consider comps that are more recent, more proximate and more similar,” Johnson said.

Some experts mentioned that the increase in bidding wars may also disproportionately reflect the values of like homes in a neighborhood. With homebuilding back up after a short pause at the beginning of the pandemic, experts said the housing stock will vary in ratings as more people leave their homes rather than age in them.

All appraisal experts were in agreement that a lack of communication is a breaking point for the expectations of what the home is worth in collateral. Joni Pilgrim, CEO of Nationwide Appraisal Network, said 99% of the time, there are zero details about the subject property prior to the appraisal, transforming the appraiser into the messenger in those cases and running the risk of an extended appraisal turn time.

“If you’re on top of a mountain and have a 170-degree view of the valley, that’s a million-dollar lot all day long, and the appraiser should be able to pick up on that usually when they’re being asked to do the assignment. However, the lender should know that out of the gate, because once you enter into this property – being a mansion-level property or one with a solar powered system or there’s something unique about it, that needs to be communicated to get a proper rating,” said Woody Fincham, founder and president of Accurity Fincham and Associates.

In terms of the ratings themselves on reports, a C5 rating can have a detrimental effect on the property value and become a risky proposition to hold collateral on. However, if sellers are willing to take the time to do repairs, the appraisal can be conditioned and brought back up.

“If it’s truly a C5 property, it’s going to be difficult for someone to sell the property without selling it at a significant discount. So a buyer buying that property is going to go ‘you know what, I will buy it, but because I know I’ve got to replace a couple of major systems I’m going to buy it with some type of equity involved with it so I can feel like I’m getting a good deal out of it,” Fincham said.

In March, the FHFA eased its standards for property appraisals to help keep families and employees safe throughout the pandemic. However, Pilgrim said the industry’s expectations are still not within the realm of these new flexibilities.

“There’s still an expectation to get everything done quick, and we are hearing ‘we need it now.’ Everybody wants to rush, but it’s just not possible when the appraisers are operating at capacity,” Pilgrim said. “As an AMC we are squarely in the middle of the challenge for both sides. We empathize with the lenders who are trying to meet deadlines for the borrower and we also advise the appraisers because a lot of them are working seven days a week and doing everything that they can to keep up with the surging demand.”

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Source: HousingWire Magazine

UWM 1.99% 30-year mortgage rate comes with a catch

United Wholesale Mortgage announced Tuesday it is offering conventional mortgage rates as low as 1.99%, but brokers warn this rate isn’t for every borrower, or even the majority.

“You won’t find a no-cost loan in the low 2s or high 1s,” Mortgage Broker Jason Barlow explained in an interview with HousingWire.

That’s because when borrowers go to take out a mortgage, they pay for their rate.

While a rate of 1.99% could cost a borrower thousands of dollars more on their loan, if they are planning on staying in their home for several years, the lower rate could make sense over time.

“Economically, what those rates do from an investment perspective over time makes a lot of sense,” according to Barlow.

UWM CEO Mat Ishbia explained that a $300,000 mortgage for the right borrower could cost around $4,000 more to get the lower 1.99% rate. However, he cautioned that these numbers are ultimately determined by the borrowers’ profile and what agreement they come to with the broker.

Barlow worked up a scenario saying that a top tier borrower with 60% LTV and an excellent credit score might pay around $5,000 for a 2.125% rate on a $470,000 loan, while they would pay close to $10,000 for a 1.999%.

“We have seen other wholesale lenders follow suit with UWM, but UWM certainly seems to be leading the way in offering progressively lower rates,” Barlow said.

Barlow also pointed out that while many borrowers may not benefit from the 1.99% rate, dropping rates this low also lowers other mortgage rates to the low 2s for a variety of borrower types.

Ishbia said this initiative will help increase purchase and refinance mortgages for the broker community.

“We want to make sure our brokers have every advantage to win as many loans as possible, so we’re excited to do that and offer a great deal to a lot of consumers,” Ishbia said.

This rate comes less than two weeks after the company announced a 1.875% rate for its 15-year mortgages. For the 15-year mortgage, UWM outlined conditions such as having a FICO score of at least 640. Also, cash-out and high-balance loans are not eligible and the product is only for owner-occupied properties, according to a mortgage broker who declined to be identified.

About two weeks ago, Quicken Loans advertised a “limited-time” rate of 1.99% on 15-year mortgages, and according to one broker, Parkside Lending and Stearns Lending are offering a 15-year-fixed rate as low as 1.75% to some mortgage brokers, depending on the relationship. HousingWire reached out to Quicken, Parkside and Stearns for comment with no response at time of publication.

The post UWM 1.99% 30-year mortgage rate comes with a catch appeared first on HousingWire.

Source: HousingWire Magazine

Offerpad expands iBuying in Central Florida

Offerpad announced on Tuesday the expansion of its Real Estate Solutions Center into Port St. Lucie, Florida, as the first iBuyer in the region. The company resumed making cash offers in different parts of the country on May 8.

Through the Real Estate Solutions Center, a home is evaluated by the company’s real estate experts and Offerpad’s data-driven real estate platform. Within 24 hours, the homeowner will be presented an Offerpad cash offer, along with additional exclusive selling options. Those options include selling the home instantly to Offerpad or partnering with Offerpad to list the home.

This is the sixth Florida market where the company is now live since it began iBuying in Florida in 2015, operating in Citrus Ridge, Fort Pierce, Port St. Lucie, Sebastian, Stuart and Vero Beach.

“We’ve had a significant amount of seller interest to widen our Orlando coverage area for quite some time,” Vaughn Stewart, Offerpad’s Orlando market director, said in a statement. “Port St. Lucie is known for quality homes that are typically located in quiet neighborhoods and surrounded by beautiful scenery – we are confident that our stress-free way to sell a home will be welcomed by homeowners.”

For consumers interested in new construction, Offerpad has partnered with Beazer Homes, Maronda Homes, Meritage Homes, and Pulte Homes, to name a few. Homebuyers and sellers interested in pursuing new construction with one of Offerpad’s builder partners receive exclusive benefits such as selecting the closing date of their current home to align with the close of the new build, up to nine months out, the company said.

Homebuyers and sellers are also able to take advantage of Offerpad’s Extended Stay program, allowing the seller to remain in the home five days past the close of escrow.

In June, Keller Williams announced that its iBuying solution, Keller Offers, was no longer in an exclusive agreement with Offerpad.

According to the company, this allowed Keller Offers to expand with more funding partners, giving consumers more choice and competitive offers.

The post Offerpad expands iBuying in Central Florida appeared first on HousingWire.

Source: HousingWire Magazine

[PULSE] Black lives, Black families and Black homeownership matter

There is a 30-point difference between white and Black homeownership rates in the U.S. today. Shockingly, the gap is wider than it was in 1968, when the federal government first outlawed racially based housing discrimination.

Sadly, the pandemic, which is wreaking disproportionate financial havoc on minority communities, may expand the chasm. This makes it more important than ever to consider how the U.S. will finally welcome persons of color to share fully in the American dream of homeownership.

It’s a serious challenge. The most abhorrent racist practices, such as redlining, are officially prohibited, yet bias creeps into mortgage lending in myriad ways. Countering these forces has been a core objective of my career.

Requiring a down payment up-front from homebuyers has long been considered a cornerstone of risk mitigation for lenders. However, for some segments of our society, down payments are also why the well-worn phrase “it takes money to make money” holds true for homeownership. For a hard-working family, it can take years to save for a down payment. And any setback — such as the coronavirus crisis — can return them to square one.

Down payments aren’t such a challenge for those of intergenerational wealth, on the other hand. The average white, upper middle-class adult can often borrow from mom and dad, grandparents, or a kindly aunt or uncle. They enter into homeownership more easily, with a lifetime to build equity to pass down to their children. So, early in my career, I sought for ways to help would-be buyers, most being minorities, bridge the gap and achieve homeownership earlier.

One tool I used for a time to level this playing field was seller-funded down payment assistance. In the early 2000s, many — including myself — believed empowering someone with a home for sale to contribute to the buyer’s down payment was a small way to help deserving families.

In 2002, to protect lenders, I cofounded and organized an industry association called HAND, whose mission was to educate the mortgage industry on the proper utilization of seller funded DPA, and to curb risky practices.  However, the speculative buying frenzy which led up to the crash overcame any serious efforts to institute proper controls. For example, many appraisers were artificially inflating home valuations to cover the assistance, driving housing prices to insupportable highs from which they eventually crashed. 

For this reason, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Housing and Economic Recovery Act ended the use of seller-funded assistance to defray a buyer’s down payment responsibilities.

The same laws also eliminated other unsustainable loan programs: subprime mortgages offered to less creditworthy borrowers at steep rates; no-income verification loans where borrowers were trusted to provide accurate salary information; and short-term adjustable rate, interest-only, and other mortgages with deceptively low initial payments which ballooned into unaffordable payments later in the term of the note.

The industry learned from the mistakes of the past and so did I, as well as the entire team at the Chenoa Fund. And now, thanks to these reforms, we live in an era of far greater mortgage banking controls and stability. But there is still a gaping need for people without legacy wealth, to receive the down payment help they need to buy a home.  We need to protect these improved avenues for down payment assistance that have since evolved—programs offered by government entities. 

The organization I now lead, the Chenoa Fund, is among these federally recognized down payment assistance providers (DPAs). The Chenoa Fund loans down payment money to applicants who meet our strict standards, offers forgiveness to many borrowers who achieve a 100% on-time payment history on their first mortgage, and incorporates comprehensive and on-going financial education to help families plan effectively to stay current on their mortgage — a benefit especially critical as borrowers grapple with the stress of today’s pandemic.

By learning from the lessons of the past, we’ve developed a responsible and safe method to provide much-needed down payment assistance, and I’m proud to be part of it. I’m especially heartened to know that over half the borrowers we helped last year were minorities, and one in three represented the first generation in their family to ever own a home. 

Unfortunately, the Department of Housing and Urban Development could, in an act of sheer obstinacy, soon force the Chenoa Fund and other DPA providers to shutter. HUD insists, against evidence to the contrary, that any third-party down payment assistance increases default risk for taxpayer-backed loans, and the bureaucrats are threatening blanket rules that would essentially eliminate operations like ours. 

This is a point they make without data, especially given that the most recent FHA monthly report shows that loans with down payment assistance from government entities perform significantly better than loans that received down payment assistance from family.

In essence, HUD is saying that if you come from wealth, where family can help you with a down payment, you can realize the dream of homeownership. On the other hand, if you do not come from a home with legacy wealth, as is the case with most minorities, you will be shut out of buying a home for many years. 

Ending down payment assistance for deserving families is an extreme measure, especially when more reasonable alternatives exist. The Chenoa Fund has, for example, provided independent data showing that default rates on loans we’re involved with are well below HUD averages. And HUD could easily collect the information necessary to distinguish the few underperforming DPA providers in the market and target their regulatory activity accordingly, without harming the rest. But despite what’s at stake for minority communities, they have so far refused to perform such basic due diligence. 

It’s a frustrating example of systemic racism at a time when citizens are marching in the streets for a more equitable future. At this point, our best hope is that HUD leaders come to their senses before pushing more people of color off the ladder to the middle class and ultimately, the American Dream of homeownership.

The post [PULSE] Black lives, Black families and Black homeownership matter appeared first on HousingWire.

Source: HousingWire Magazine

What Trump’s reelection would mean for banks

A second-term Trump administration would likely continue its deregulatory efforts, focus on Fannie Mae and Freddie Mac’s exit from conservatorship, and seek to facilitate fintech participation in the banking system.
Source: American Banker

MBA asks CFPB to extend GSE patch

The Mortgage Bankers Association sent a letter on Monday to the Consumer Financial Protection Bureau asking for a six-month extension to the so-called “GSE patch” that allows Fannie Mae and Freddie Mac home loans to borrowers with high debt levels to be considered Qualified Mortgages.

“The GSE patch serves a crucial role in the mortgage market,” MBA said in the letter to CFPB Director Kathy Kraninger. “By providing an exception to the general QM loan definition’s strict 43% debt-to-income ratio threshold and rigid income and debt verification criteria, the GSE patch facilitates access to affordable mortgage credit for credit-worthy borrowers who fall outside the requirements of the general QM definition.”

The GSE patch is a temporary measure set to expire on Jan. 10, 2021, or on the day the GSEs exit conservatorship, whichever occurs first. The MBA is asking for a six-month extension after the January date.

The MBA was responding to a CFPB notice in June of proposed rulemaking that would remove the debt-to-income requirement from qualified mortgages. The bureau asked for industry input, and the MBA submitted its letter on the last day of the comments period.

Back in January, Kraninger sent a letter to Congress saying the bureau had decided to propose an amendment to the QM Rule that would “move away” from DTI as a factor in mortgage underwriting.

Specifically, Kraninger said at the time that the CFPB has decided to shift from the DTI standard and move to an “alternative, such as a pricing threshold,” meaning the difference between the loan’s annual percentage rate and the average prime offer rate for a comparable transaction.

In its letter this week, MBA said the GSE patch should not extend indefinitely.

“The GSE patch served to ensure stability in the mortgage market, as it was intended to do, in the years following its inception,” the MBA letter said. “The flexibility that it afforded consumers, lenders, and investors helped to maintain broad access to responsible mortgage credit. The GSE patch was not, however, intended to become a permanent feature of the housing finance system.”

MBA also said the time frame for the GSE patch should not be linked to the end of the conservatorship for Fannie Mae and Freddie Mac.

“The conservatorships have already lasted many years beyond the expectations in place at their onset, and the path to ending the conservatorships will be influenced by significant regulatory, legislative, and market factors that are difficult to predict,” MBA said. “Given the prospect that the GSEs could be in conservatorship for a lengthy period of time, the GSE patch should not be tied to the end of the conservatorships.”

The post MBA asks CFPB to extend GSE patch appeared first on HousingWire.

Source: HousingWire Magazine

Women lead industry through the haze of pandemic

Women lead

As the holidays ramped up in early December 2019, Woman of Influence Charlotte Catalfo had her eye not on decorating and gift-wrapping, but on a small but worrisome health crisis escalating halfway across the globe. 

From the suburban Virginia headquarters of mortgage securitizer Freddie Mac, Catalfo kept tabs on a new virus that the Chinese government was having trouble containing to the city of Wuhan. When the now-infamous COVID-19 virus hopscotched to Italy, she knew that it was time to put Freddie Mac’s emergency continuity plan into gear. As senior vice president for enterprise operations and a member of Freddie Mac’s senior operating committee, it was her responsibility to figure out how to ensure uninterrupted work with investors, lenders, multifamily property owners and homeowners if business as usual was thrown off track.

Leading the Freddie Mac’s business continuity initiative, which manages $2.2 trillion in assets, Catalfo cleared the way for ongoing collaboration with regulators and business partners to firm up policies to keep Americans safely housed. Her team worked with lenders to lay out policies for mortgage forbearance, if it was needed. She oversaw dress rehearsals in which Freddie Mac departments practiced remote work to find and fix technical and logistical glitches. 

“People, process and technology,” Catalfo says of the remote-work stress tests. “We found that some people were locked out [of the Freddie Mac computer systems] and we could help them before there actually was a crisis. We figured out how to support employees in their critical roles. We finished our last division just as we declared that everyone had to work from home except for essential personnel. That plan executed nicely.”

In March, while most American companies were hastily patching together backup plans for keeping their doors virtually open, Freddie Mac was a step ahead. Having learned from the 2008 housing crisis that consumers needed clear, consistent guidance about what to do if they couldn’t pay their mortgages, Freddie Mac made itself the go-to source for how homeowners could claim forbearance to ensure they had a home in which to shelter in place. 

As the pandemic swept across America in the spring of 2020, Freddie Mac managers took their cues from senior leadership: support line employees as they figured out their own personal continuity plans. Communicate more, and more often, than you normally would. Assume the best. Lead with empathy.

It worked: the company’s thousands of employees managed a record volume of inquiries, offering beleaguered Americans at least one reliable point of reference when nearly all aspects of daily life were upended.  Over 2 million Americans sought information about their mortgages from the company’s website.

From pandemic to protests to politics, 2020 has been an obstacle course for housing industry companies. Though core business momentum is strong, employers are fighting a thicket of complications to keep staff engaged, business partners in synch and customers in the loop. 

Data and forecasting only go so far when events cascade to a torrent of unexpected, unpredictable situations. When companies have to navigate one week or even one day at a time, communication and collaboration are the most critical leadership skills. And women are, as a group, renowned for those skills, along with a measured risk management; empathy; and a people-first approach to operations. This year, as the going got tough, women who kept things going drew on both traditional and operational strengths. If this year continues its current trajectory, the housing industry might permanently change as a result. 

“It’s nurturing that women tend to be better at,” says Kara Taylor, ATTOM Data Solutions vice president of marketing. “And that’s what this situation calls for.” 

A health care crisis on such a huge scale is intrinsically threatening at an elemental level. That means that employee communication is really about reassurance; frightened people can’t concentrate, Taylor pointed out. In such situations, she says, women intuitively gravitate toward communication, lots of it, in lots of different ways, on lots of different levels.

 “I’m always asking my team, how’s your comfort level, what are you worried about? And then I can take that to the executive team and share that there’s anxiety out there,” Taylor said. Early in the COVID-19 pandemic, she realized that employees and business partners alike had no tolerance for generic messages. “They wanted to hear directly from the person in charge. It helps every time our CEO sends out an email that says, ‘here’s what we’re doing, and why.”

“What we’re seeing now is drawing on some important skills that don’t always get prioritized,” said Gayle Weiswasser, senior vice president of communications and business development for Homesnap, a mobile productivity platform for agents and a home search platform for consumers.

“Serving in a communications role in this pandemic has drawn on traditionally female traits, such as empathy and connection, and reaching out,” Weiswasser said. “It has been a bit less about traditional marketing messaging and analytics, and the more transactional side of relationship building. We’ve seen that since the middle of March. What’s working with establishing connection with audiences is providing information and recognizing the challenges that people, especially agents and multiple listing service staff, are going through. We’re trying to anticipate the kind of content that will make their lives easier and explaining what those features are and how to use them.”

Catalyst, a New York-based nonprofit think tank that explores and advocates for women’s leadership, released a report in June illustrating how aptitudes often characterized by women are precisely what’s needed to guide organizations through this year’s wrenching events. Transparency, equity and communication are essential factors for fueling resilience and flexibility, Catalyst reported.

Housing industry employers need all that and more to steer through the confusion that the COVID-19 pandemic inflicted on nearly every segment of the economy. 

“The pandemic has put more urgency on utilizing our soft skills for crisis  management, without a doubt,” said Lisa Fenske, senior vice president of marketing and communications for Waterstone Mortgage, which employs 600. “We had to have creative problem-solving strategies while also considering health and safety protocols. We put even more of an emphasis on communication, not just with employees and customers but also with business partners. And that didn’t just mean pushing out emails and videoconferences, but considering the personal and emotional perspective.”

“And then I started seeing a bit of a shift,” Fenske continued. “When we had conversations, and we kept bringing up employees’ situations as we made decisions, other leaders started talking about that, too. The months of March through May presented many extraordinary circumstances for us, as they did for all businesses. We relocated about 90% of our workforce to their homes, and remained sensitive to the unique emotional challenges that many of our employees and customers were facing. While we focused on making the transition seamless and flexible for our team members, we were also able to successfully help a record-breaking number of customers with their home purchase and refinance needs.”

As in many industries, many women in senior housing leadership occupy marketing, communication and human resources roles, precisely the roles designed to rise to the occasion.

“I held myself and the team accountable to ensure that we had virtual face time with each of our direct reports,” said Victoria Gillespie, chief marketing and communication officer for the National Association of Realtors. “We initiated best practices around virtual and consistent communication.”

The same approach framed Gillespie’s external communication: if she was a resource for her team and for NAR, then member agents could take their cues accordingly and be resources for their local communities. “We called this a resiliency plan, not a ‘COVID plan,’” said Gillespie.

The nature and intensity of 2020’s events could signal a permanent shift in how the housing industry values women’s traditional strengths, according to business school academics who study gender roles in the workplace.

“I’d be surprised if we went back to business as usual,” said Laurens Bujold Steed, an assistant professor of management at Miami University in Oxford, Ohio. “Employers have to be more thoughtful about sick leave, taking leave, caregiving and working from home, and there are a lot of psychological impacts that employers will likely have to consider as well. Organizations may find that many of the policies they enacted benefit the organization and they may keep them.” 

Crisis-induced change can be good, said Elizabeth McClean, an assistant professor of management within the University of Arizona’s Eller College of Management, who studies gender dynamics in leadership.

Given the glacial pace of advancement for women in most industries, including housing, a radical shake-up can break inertia and propel change that has been long in coming.

“There is a chance that this pandemic might have some positive outcomes. We might be better managers because of this. It will require having more women at the top but also having more men at the top explicitly recognizing the benefits of these behaviors.”

-Elizabeth McClean

Karen Starns, chief marketing officer of OJO Labs, a technology company that has developed a personal artificial intelligence advisor, is acclimatized to male-dominated teams, she said. But the abrupt shift to all-remote, all the time challenged even her tech-immersed comfort zone. 

“When you’re a successful woman leader, the tactics that work for you around a conference table may not directly translate to virtual work,” Starns said, who added that she is asserting herself more to ensure that all participants in virtual meetings are heard, including herself. “There are lots of tactics you can use in a room, like putting your hand on the table, and when you’re on Zoom you can’t use your presence in the same way.”

“One thing I learned earlier in my career is not ceding the floor,” Starns said. “I find that it is valuable to not say, ‘oh, you go ahead.’ If two people start talking, I’m going to say my piece and not always defer. I’m going to get my comment in.”

In normal times, task-oriented leadership behaviors tend to be more valued, even though leadership effectiveness requires the ability to get things done and to have strong relationships.

“Since women are already expected to display compassion and communality, we are at a pivotal moment where we can explicitly shift the value we place on relationship-driven leader behaviors for both men and women, without anyone risking a backlash for doing so,” McClean said.

“People think of evolution as linear, but it’s not,” said Vipula Gandhi, a managing partner with Gallup, which constantly monitors American perspectives about leadership and workplace culture. “Unexpected high impact events create change at a very high pace. Women’s strong connection with the purpose of the organization, and their innate strengths provide them an edge in the current circumstances.”

“There will be a greater appreciation for women because men are seeing how well women are handling so many factors,” said Erica Bigley, Ellie Mae vice president of corporate communications. 

The pandemic forced Ellie Mae to transfer its annual user conference to the virtual realm. The silver lining to that cloud quickly shone: 6,000 customers, partners, prospective customers and employees signed up to attend from their desks, compared to 2,500 who’d registered for the on-site event. Meanwhile, working largely from home, Ellie Mae’s staff of 2,000 continued to help lenders manage a record volume of mortgage refinances. 

“I think we’ll look back in 10 years and realize this period was worse than we thought,” said Courtney Graham, Princeton Mortgage senior vice president of marketing and people. Executive teams are discovering previously hidden fault lines and have a chance, as the dust settles, to realign their dynamics accordingly, she said.

The true moment of change will come when male leaders realize the power of women’s strengths and deliberately decide to incorporate an understanding of some of those skills into their own leadership style, said Gandhi. 

“If we incorporated women’s empathetic and inclusive approach into the traditionally male style of data-driven and strategic decision-making, an entire leadership team will be better positioned for success. It’s not about one gender’s skill or aptitude versus the other. It’s a blend of both that brings out our best.”

– Vipula Gandhi

To read the full August issue of HousingWire Magazine, click here.

The post Women lead industry through the haze of pandemic appeared first on HousingWire.

Source: HousingWire Magazine

Rent payments collected in August tick down

The amount of rent payments collected in the U.S. has ticked down slightly to 79.3% of apartment households making a full or partial rent payment by August 6, according to the National Multifamily Housing Council’s Rent Payment Tracker.

While this is a slight increase from July 6 this year, it is a 1.9 percentage point decrease from the share of renters who paid rent through August 6, 2019.

NMHC said that rent collections in early August are as expected, based on collections during the previous few months, but the cut-off of extra unemployment benefits may make things worse.

“Over the past few months apartment residents have largely been able to meet their housing obligations,” David Schwartz, NMHC chair and CEO said in a statement. “In no small part, this is due to the enhanced unemployment benefits enacted under the CARES Act and significant steps by apartment owners and operators to help their residents.”

“These unemployment benefits that have proven so important to so many households have now lapsed, meaning greater financial distress for millions and the potential worsening of America’s housing affordability crisis,” Schwartz said.

According to RealPage, missed payments were most frequent in lower-priced Class C properties. Through August 6, this month’s rent was collected from 72.7% of the residents in Class C units, while 82% to 83% in the Class A and Class B inventories were made in time.

Year over year, rent collections are 7.7 percentage points lower in Las Vegas; 7.5 percentage points off in Los Angeles; and 7 percentage points off in San Jose.

The smallest share of rent collected was in New York, where 64.5% of households were up-to-date on rent payments, RealPage said.

The post Rent payments collected in August tick down appeared first on HousingWire.

Source: HousingWire Magazine

How a cloud-based tax platform benefits mortgage servicers

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HousingWire President and CEO Clayton Collins recently sat down with Eric Christensen, product management executive at CoreLogic, to discuss recent updates to the company’s DigitalTax Platform.

CoreLogic has invested more than $35 million into its DigitalTax Platform over the last three years, providing customers with a unified and consistent view of property tax data across the mortgage ecosystem. Features of the DigitalTax Platform include near-real-time data as well as on-demand portfolio analytics and reporting, which gives customers timely and actionable insights. 

The DigitalTax Platform is engineered on a cloud platform for both tax information and making tax payments, allowing customers to transition from a static to a dynamic environment using things like real-time tax collector data and portfolio analytics. The platform is fully integrated with the top loan servicing systems through tested and developed IP technology.

CoreLogic works with over 22,000 taxing authorities in the U.S. The company’s DigitalTax Platform roadmap has allowed it to continue to collect data – in some cases, near real-time – daily or weekly from the top 1,000 taxing authorities in the U.S. This data is uploaded into the digital cloud platform and made available to CoreLogic’s customers through the DigitalTax Platform. This has been a huge benefit to the company’s tax collector partners as well as its customers. 

The DigitalTax Platform facilitates tax services for mortgage servicers, helping them to know more, and know more sooner.

The post How a cloud-based tax platform benefits mortgage servicers appeared first on HousingWire.

Source: HousingWire Magazine

Using AI to make secondary market for online consumer loans

Theorem is marketing its first-ever securitization of unsecured loans. It uses machine-learning technology to gauge the risk of default, a growing concern during the pandemic recession.
Source: American Banker