Senior housing wealth reaches record high

A new report shows that seniors are sitting on more housing equity than they ever have before.

According to the National Reverse Mortgage Lenders Association, overall senior housing wealth hit an all-time record in the second quarter, $7.17 trillion.

Homeowners 62 and older also saw their housing wealth increase by 0.5% percent or $32 billion in the second quarter.

The data comes courtesy of the NRMLA/RiskSpan Reverse Mortgage Market Index, which was first released in 2000. According to the report, the RMMI also hit a record high in the second quarter, climbing to 258.44.

(Image courtesy of NRMLA. Click to enlarge.)

The report stated that the increase in senior homeownership wealth was caused by an approximately 0.5%, or $47 billion, increase in senior home values, which was offset by a 0.9%, or $14.6 billion, increase of senior-held mortgage debt. 

“Many retired and soon-to be-retired Americans lack the financial assets for a comfortable retirement, yet the most commonly held and valuable asset for most of them is their home,” said NRMLA’s Executive Vice President Steve Irwin. “Responsible use of home equity may be the best option that ensures they have food, medicine and other basics for a comfortable retirement.”

Source: HousingWire Magazine

Trust Amazon, Google with their savings? Consumers are split

Two new surveys have found that most consumers would prefer to stash their cash in traditional banks. But there’s one group of savers who would be very comfortable opening accounts with tech giants if given the opportunity.
Source: American Banker

Comment on OREP/WRE Bifurcated Appraisal Survey 2019 by Andrew Picarsic

If lenders want to waive Appraisals, do away with Inspections by the appraiser or a Trainee…then let them do it, but without the Federal Money(aka Public) backing the loan! Watch how fast this Burb It Up Report disappears literally over-night. If I as the Appraiser is the one causing the delay in loan closings?…then tell me why does the typical loan close so many days(4-10 or longer) after i have delivered the report? If Appraisers are slowing up the process so much, Why do AMC’s spend a week or more searching for the Cheapest Appraiser out there…Why..Hmmm Inquiring minds want to know.

Source: Working RE Magazine

Citi fined $30 million over how it handled foreclosed property

The Office of the Comptroller of the Currency found deficiencies related to the bank’s holding period for “other real estate owned.”
Source: American Banker

Comment on OREP/WRE Bifurcated Appraisal Survey 2019 by Howard J McDermott

Very good and truthful article. You hit the nail on the head here. We must keep appraisers viable.

Source: Working RE Magazine

CFPB launches task force to identify gaps in consumer finance law

CFPB Director Kathy Kraninger announced the creation of a task force to research and identify potential conflicts in consumer finance law.
Source: American Banker

Congress Wakes Up?

This may be the time to express your concerns to your Representatives in Congress about bifurcated appraisals, Fannie Mae Waivers and other moves to dilute and replace appraiser oversight.

The post Congress Wakes Up? first appeared at Working RE Magazine.

Source: Working RE Magazine

Auto lenders brace for hit from ride-sharing services

As apps like Uber and Lyft gain more traction, the need for new cars ⁠— and loans ⁠— is expected to diminish.
Source: American Banker

Fed to start buying $60 billion of Treasury bills a month

The Federal Reserve said it will begin buying $60 billion of Treasury bills per month to improve its control over the benchmark interest rate it uses to guide monetary policy after turmoil rocked money markets in September.
Source: American Banker

Freddie Mac begins marketing $400 non-performing loan sale

Freddie Mac recently began marketing a non-performing loan sale with about $400 million in unpaid principal balance.

The government-sponsored enterprise said its NPL sale is an auction
of seasoned non-performing residential first lien whole loans held in Freddie
Mac’s mortgage-related investments portfolio. The loans are currently being
serviced by Specialized Loan Servicing.

The loans are currently being marketed via five pools: four standard pool offerings and one extended timeline pool offering, which targets participation by smaller investors such as non-profits, minorities, women, disabled, LGBT, veteran or service-disabled veteran-owned businesses.

Bids on the pools are due by October 31, 2019, for the standard pools, and by November 14, 2019, for the EXPO pool. The four SPO pools are expected to settle in January 2020 while the EXPO pool will likely settle in February 2020.

All eligible bidders, including private investors, MWDOBs,
non-profits and neighborhood advocacy organizations are encouraged to bid. To
participate, all potential bidders are required to be approved by Freddie Mac
and must successfully complete a qualification package to access the secure data
room containing information about the NPLs and to bid on the NPL pool. Freddie
Mac explained that the bids are to be made on an all-or-none basis for any pool
separately or for any combination of SPO pools together.

Advisors to Freddie Mac on the transaction are JPMorgan Securities and First Financial Network.

Freddie Mac explained it is offering these non-performing
loans in an attempt to reduce its less liquid assets and reduce risk to U.S.
taxpayers. To date, Freddie Mac has sold $8.1 billion in NPLs and $56.7 billion
in re-performing loans.

Source: HousingWire Magazine