House Subcommittee Examines Fed’s Transparency and Accountability

first_img A House Subcommittee convened Tuesday to discuss the accountability and the transparency of the Federal Reserve Board, as well as the Fed’s expanded powers under the Dodd-Frank Act which was passed into law five years ago this month.The Financial Services Oversight and Investigations Subcommittee examined the central bank at the hearing, titled “Fed Oversight: Lack of Transparency and Accountability” Tuesday morning. One of the focal points of the hearing was the perceived expansion of the Fed’s power under Dodd-Frank beyond its originally intended mandate, which was to promote the goals of maximum employment, stable prices, and moderate long-term interest rates. One of the key takeaways from the hearing, according to the Subcommittee, is that the Fed’s newly granted powers under Dodd-Frank call into question whether or not the central bank’s accountability to Congress, the Judicial System, and the American people.”While the Fed’s purview and power continues to grow, opacity reigns supreme within its walls. It is a veritable fraternity where silence is golden, and no one, not even Congress, is allowed to ask questions,” Subcommittee Chairman Sean Duffy (R-Wisconsin) said. “This is true not only of how it conducts monetary policy, but also of its internal processes. The Fed’s clamor for ‘independence’ is the underpinning of its argument for circumventing any Congressional accountability. Markets are left in the dark almost as much as Congress.”Fed Chair Janet Yellen responded to allegations of a lack of transparency of the part of the Fed in her testimony before the Senate Banking Committee on February 24 by saying, “The Federal Reserve is the most transparent central bank, to my knowledge, in the world. We have made clear how we interpret our mandate and our objectives, and provide extensive commentary and guidance on how we go about making monetary policy decisions.”The Subcommittee cited as an example of the Fed’s lack of accountability the bank’s refusal to comply with a subpoena issued by House Financial Services Committee Chairman Jeb Hensarling (R-Texas) in May. Hensarling was seeking documents related to an investigation the Fed performed with relation to a 2012 report by a policy information service that allegedly leaked information on internal Fed discussions before that information as made public. The Fed’s investigation found no breaches. The Committee issued a statement saying the Fed had no legal basis for refusing to comply with the subpoena.”The Fed is the most opaque of the ‘independent’ Federal financial regulatory agencies,” said Dr. Paul H. Kupiec, Resident Scholar, American Enterprise Institute, a witness at the hearing. “It sets its own accounting standards that are inconsistent with generally accepted accounting practices for financial institutions and it routinely acts as if its independence on monetary policy matters shields it from disclosing information on its operations including staff salaries, benefits, hiring practices and Congressional inquiries regarding internal investigations. Congress must mandate greater transparency.”At Tuesday’s hearing, the Subcommittee suggested that the Fed could greatly improve transparency and accountability if it adopted a rules-based approach to monetary policy. This approach, the Subcommittee said, would be more transparent, more predictable, and easier for the Fed to communicate and for market participants to understand.In her testimony before the Senate Banking Committee in February, Yellen said that a rules-based approach “would be a grave mistake for the Fed to commit to conduct monetary policy according to a mathematical rule. No central bank does that. And I believe that although under the legislation we could depart from that rule, the level of short-term scrutiny that would be brought on the Fed in real-time reviews of our policy decisions would essentially undermine central bank independence in the conduct of monetary policy.”Yellen is scheduled to testify before the House Financial Services Committee on Wednesday, July 15, and before the Senate Banking Committee on Thursday, July 16.”The Federal Reserve played a starring role in both creating the financial crisis and in its response,” said Dr. Mark Calabria, Director of Financial Regulation Studies, Cato Institute, a witness at the hearing. “Despite that role and the Fed’s numerous failings, Dodd-Frank largely expanded its responsibilities. Along with our flawed mortgage finance system, our monetary regime remains one of the unaddressed structural flaws behind the crisis. Without reform, including greater accountability and transparency, the Federal Reserve is almost certain to continue its pattern of inflating asset bubbles, in the false hope such will create wealth and jobs. Given the current stance of monetary policy, the need for reform is particularly urgent, if not perhaps a little too late.” Tagged with: Federal Reserve House Financial Services Committee Oversight and Investigations Subcommittee Transparency and Accountability Related Articles Previous: Foreclosure Metrics Experience More Double-Digit Declines Next: DS News Webcast: Wednesday 7/15/2015 July 14, 2015 1,659 Views Demand Propels Home Prices Upward 2 days ago Federal Reserve House Financial Services Committee Oversight and Investigations Subcommittee Transparency and Accountability 2015-07-14 Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago House Subcommittee Examines Fed’s Transparency and Accountability About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Share Savecenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Sign up for DS News Daily in Daily Dose, Featured, Government, News Home / Daily Dose / House Subcommittee Examines Fed’s Transparency and Accountability The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

Fed Holds Off on Raising Interest Rates, Citing Insufficient Economic Improvement

first_img As the Federal Open Market Committee (FOMC) reconvened Wednesday, results from their October 27th and 28th meeting placed yet another hold on the rate hike, leaving the federal funds rate at the current 0 to 1/4 percent target range.The question on everyone’s mind in the mortgage industry remains: When will the Federal Reserve raise rates?With just one more meeting left this year in December, the Fed has just one last opportunity to raise rates, but many are wary that it will may not occur this year.A statement from the FOMC showed that household spending and business fixed investment rose at solid rates in recent months, while the housing market continued to improve.On the downside, government officials saw net exports fall soft, job gains slow, and the unemployment rate held steady. In addition, inflation remains under the Committee’s objective of 2 percent, reflecting falling energy prices and prices of non-energy imports. With all of this taken into account, the Committee decided to hold off on the rate increase until maximum employment, price stability, and inflation goals are reached.”To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate,” the statement said. “In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress—both realized and expected—toward its objectives of maximum employment and 2 percent inflation.”The National Association of Federal Credit Unions’ (NAFCU) Chief Economist Curt Long predicted that the rate increase would not occur prior to the official FOMC statement.“December is a possibility, but one has to ask if the situation has really improved since September,” Long stated. “At this point, the answer would seem to be no, as the risks to inflation continue to be stacked to the downside. Early 2016 seems far more likely.”International officials and bankers have voiced that they are tired of the hesitancy seen within the Federal Reserve when discussing interest rate increases.“If you delay something that you were planning to do, then you leave the impression that your compass is different than what you led markets to believe,” Jacob Frenkel, chairman of J.P. Morgan Chase International and former head of the Bank of Israel, said in an interview with the Wall Street Journal.”In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress—both realized and expected—toward its objectives of maximum employment and 2 percent inflation.”—Federal Reserve”Market drama is increased by delay,” he added. Discussion at the Fed’s annual retreat this week consisted of officials and bankers from all over the world urging the Fed to proceed with the rate hike and “get on with it already,” according to an article featured on the Wall Street Journal.However, earlier this month, Federal Reserve Board Governor Lael Brainard recommended restraint in turning the corner on interest rates–suggesting they need to be left near zero for the time being.“I view the risks to the economic outlook as tilted to the downside,” she noted. “The downside risks make a strong case for continuing to carefully nurture the U.S. recovery–and argue against prematurely taking away the support that has been so critical to its vitality.”The minutes from the Federal Open Market Committee (FOMC) September meeting showed that the Fed’s concern mostly lingers around global economic troubles, but they still intend to raise rates before the end of 2015.”The concerns about global economic growth and turbulence in financial markets led to greater uncertainty among market participants about the likely timing of the start of the normalization of the stance of U.S. monetary policy,” the minutes said. “Based on federal funds futures, the probability of a first increase in the target range for the federal funds rate at the September meeting fell slightly. Many participants judged that the effects of these developments on domestic economic activity were likely to be small, but they acknowledged the risk that they might restrain U.S. economic growth somewhat.”Even though most officials indicated that economic conditions will allow the hike to happen later this year, “the committee decided that it was prudent to wait for additional information confirming that the economic outlook had not deteriorated.’’  Print This Post The Week Ahead: Nearing the Forbearance Exit 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 Federal Open Market Committee Federal Reserve Short-Term Interest Rates 2015-10-28 Brian Honea Fed Holds Off on Raising Interest Rates, Citing Insufficient Economic Improvement Related Articles Share Save Demand Propels Home Prices Upward 2 days ago Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Ask the Economist: Housing Industry Should Look Forward Instead of Focusing on ‘Recovery’ Next: Success of GSEs’ Credit Risk Transfer Programs Ensure They Are Here to Staycenter_img Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, News Home / Daily Dose / Fed Holds Off on Raising Interest Rates, Citing Insufficient Economic Improvement About Author: Xhevrije West Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Federal Open Market Committee Federal Reserve Short-Term Interest Rates October 28, 2015 1,191 Views The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

Economic Turbulence Plays Havoc with Consumer Confidence

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Tagged with: Consumer Confidence HOUSING U.S. Economy Economic Turbulence Plays Havoc with Consumer Confidence Demand Propels Home Prices Upward 2 days ago Related Articles April 26, 2016 983 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Sign up for DS News Daily Consumer Confidence HOUSING U.S. Economy 2016-04-26 Brian Honeacenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Economic Turbulence Plays Havoc with Consumer Confidence About Author: Brian Honea Share Save Previous: Should Banks Be More Liquid? The Government Thinks So Next: Lawmaker Pushes for Next Step in CFPB Reform Analysts have taken note of the turbulent economic activity in the first quarter, punctuated by a recent report from Fannie Mae forecasting only one rate hike by the Federal Reserve this year instead of two.Freddie Mac’s most recent economic outlook also indicated painted a somewhat murkier picture for the economy, though the report also stated that the slow Q1 economic activity should not affect the housing market this year.Now consumers are noticing the recent economic volatility. The Conference Board’s Consumer Confidence Index for April dropped from 96.1 down to 94.2 in April (1985=100) following an increase in March that nearly erased a dismal February.According to the Conference Board, the Present Situation Index increased from 114.9 to 116.4 from March to April and the Expectations Index dropped from 83.6 to 79.3 during the same period. And while consumers’ appraisals of current conditions improved slightly in April, consumers surveyed had a generally less optimistic short-term outlook and had less favorable attitudes toward the labor market—there was an increase in the number of consumers who said they anticipate fewer jobs, while there was a decrease in the number of consumers who said they anticipate more jobs.“Consumer confidence continued on its sideways path, posting a slight decline in April, following a modest gain in March,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions improved, suggesting no slowing in economic growth. However, their expectations regarding the short-term have moderated, suggesting they do not foresee any pickup in momentum.”“The fourth consecutive increase in the labor force participation rate amid solid job growth has slowed the decline in the unemployment rate, and, combined with anemic productivity growth, may help explain the failure of wages to accelerate more rapidly.”Doug Duncan, Fannie Mae Chief EconomistThe pessimism toward the labor market came despite a healthy monthly average of job gains of more than 220,000 in the first quarter. Fannie Mae Chief Economist Doug Duncan predicted that economic activity will pick up for the remainder of the year even after the slow Q1.“We expect a healthy labor market, the solid hiring trend seen during the last few months, and stronger household incomes to boost consumer spending over the rest of the year despite weak economic activity in the first quarter,” Duncan said. “The fourth consecutive increase in the labor force participation rate amid solid job growth has slowed the decline in the unemployment rate, and, combined with anemic productivity growth, may help explain the failure of wages to accelerate more rapidly.”The decline in consumer confidence, particularly the drop in expectations for better business conditions and more jobs for the next six months seems to have had an adverse effect on near-term plans for homebuying. According to the Conference Board, the percentage of consumers surveyed  who said they plan to buy a home in the next six months dropped from 6.3 percent in March down to 5.4 percent in April.The “advance” estimate for first quarter GDP will be released by the Bureau of Economic Analysis on Thursday, April 28. The April employment situation will be released by the Bureau of Labor Statistics on Friday, May 6. 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  Print This Post The Best Markets For Residential Property Investors 2 days agolast_img read more

What Will Loan Modifications Look Like After HAMP?

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago What Will Loan Modifications Look Like After HAMP? Subscribe During the Great Recession millions of homeowners went through the foreclosure process or the process of modifying their mortgages, either directly through banks or with the help of federal programs like the Home Affordable Modification Program (HAMP). Additionally, some homeowners saw the value of their homes plummet, leaving them underwater. But according to CoreLogic, since the crisis, foreclosures have slowed, and the total number of underwater homes has dropped by half from 11.6 million in 2011 to 4.3 million last year.A recent report from Credit.com, though notes this is not to say the housing market is out of the water, or that consumers who have trouble paying their mortgages don’t need help navigating the process. Solutions span forbearance and modifications to home-disposition options, and each of these is complicated.“The foreclosure prevention programs established by Treasury, HUD and FHFA in response to the financial crisis have transformed the way in which the mortgage servicing industry has interacted with and assisted struggling homeowners,” Mark McArdle, Deputy Assistant Secretary for the Office of Financial Stability. “While MHA and other crisis-era homeowner assistance programs are ending, their impact will endure. Servicers and investors will need to leverage new or existing loss mitigation programs, but they should build on the best practices and guiding principles that have led to positive outcomes for all parties.”The Consumer Financial Protection Bureau issued non-binding guidelines for mortgage services when dealing with at-risk homeowners. This comes right around the time that HAMP is coming to an end thus the Bureau refers to the guidelines as instructions for “Life After HAMP.”“We aim to help consumers avoid foreclosures, which upset their personal and financial lives,” CFPB Director Richard Cordray said in a press release. “The modification program was put in place to provide alternatives to foreclosure. Our principles will serve as helpful guardrails for servicers, investors and regulators to consider as we continue to protect consumers who are struggling to pay their mortgages.”The report from Credit.com states that the CFPB believes consumers are on more solid footing today than they were before the recession. It notes that these new rules make future mass defaults less likely. However, the report notes that the Bureau states, “there is ample opportunity for consumer harm if loss mitigation programs evolve without incorporating key learnings from the crisis.” The report says the CFPB identified four overriding principals that financial institutions should follow when dealing with at-risk homeowners including affordability, accessibility, sustainability, and transparency. Credit.com says the Bureau cites the main goal of the guidelines to preventing “avoidable foreclosures.” August 23, 2016 1,992 Views Previous: New Homes Sales Take an Upturn in July Next: High Home Sales Doesn’t Equal Higher Affordability Share Save Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago 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, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img tweet in Daily Dose, Featured, Government, News 2016-08-23 Kendall Baer About Author: Kendall Baer Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / What Will Loan Modifications Look Like After HAMP? The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Disclosing the Details

first_img Demand Propels Home Prices Upward 2 days ago Share Save FHA Mortgage Notice House Resolution 2017-08-23 Joey Pizzolato The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago A new bill could change requirements in the National Housing Act if it succeeds the long road to becoming law. House Resolution 2777—Give Veterans Home Loan Choices Act of 2017, aims to require that a Federal Housing Administration (FHA) mortgage notice to a veteran include information that compares Veteran Affair (VA) loan information along with information about conventional loans and FHA loans. Currently, it is not a requirement under the Informed Consumer Choice disclosure to include information about VA loans.Originally introduced by Representative Marc Veasey (D-Texas) in June, the goal is to help veterans make an informed decision when deciding which route to take when buying a home.“Homeownership is a pillar of the American dream and a goal that should not be out of reach for our nation’s veterans,” said Congressman Marc Veasey. “That is why I am committed to ensuring that the brave men and women who serve our country have access to the benefits they’ve earned and are provided the information they need to make an informed decision when purchasing a home.”The bill currently has 13 co-sponsors, including Rep. Colleen Hanabusa (D-Hawaii); Sheila Jackson Lee (D-Texas); Eleanor Holmes Norton (D-Washington D.C.); Sandord Bishop Jr. (D-Georgia); Mark Takano (D-California); Dwight Evans (D-Pennsylvania); Donald Norcross (D-New Jersey); Gene Greene (D-Texas); Kyrsten Sinema (D-Arizona); Raul Grijalva (D-Arizona); Daniel Lipinski (D-Illinois); Norma Torres (D-California); and Eric Swalwell (D-California); and is sponsored by a handful of organizations, such as the Association of the United States Navy, National Military Family Association, Association of the United States Army, Reserve Officer Association, and the Veterans Association of Real Estate Professionals (VAREP).As of Wednesday, the bill has referred to the House Armed Services Committee. According to G-II Varrato, the AZ State Director for VAREP and the Chairman of VAREP National Legislative Committee, this bill has been in the works for four years, and is a “multipronged effort.”The first hurdle the bill had to overcome was to require the loan application to ask the potential borrower if he/she has ever served. According to Varrato, that piece of information has been missing from the application since 1944 when the loan was created.“Because of that,” Varrato said, “over 65 percent of the veteran community are disenfranchised—missed out on this loan product.”VAREP succeeded in altering the loan application in 2016; the new application will go live in December of 2018.The second piece of the puzzle, which the Veasey’s bill is currently trying to do, would be to require the side by side comparison. Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Tagged with: FHA Mortgage Notice House Resolution Demand Propels Home Prices Upward 2 days ago About Author: Joey Pizzolato Home / Daily Dose / Disclosing the Details Related Articles Subscribecenter_img  Print This Post Previous: Mortgage Deduction Possibility Causes Uncertainty Next: Making Amends August 23, 2017 1,143 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Headlines Disclosing the Details Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email [email protected] Governmental Measures Target Expanded Access to Affordable Housing 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 Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Ask the Economist: Selma Hepp on Economic Growth

first_img  Print This Post Selma Hepp, Chief Economist and VP of Business Intelligence Pacific Union International, Inc.Selma Hepp is the Chief Economist and VP of Business Intelligence for Pacific Union International, Inc. She joined Pacific Union in 2016 to oversee the vital economic and technology intelligence for the company. Prior to joining Pacific Union, Hepp served as Chief Economist for Trulia, Senior Economist for the California Association of Realtors, and as an economist for the National Association of Realtors. She earned her Master of Arts in Economics from the State University of New York, Buffalo, and she holds a Ph.D. from the University of Maryland.Why did you first become interested in the study of economics?Economics is one of those disciplines that always made sense to me and I found it very intuitive. I studied urban economics, in particular, because I was always interested in how cities are organized and why they emerge. Why do people choose to live in high-density neighborhoods, or far from city centers in suburbs?Growing up in a European city where walkability and high density were a norm, I was interested in why American and European cities are so different. However, over the last 20-something years that I have been here, I notice many urban trends emerging that replicate that walkability, town-center feeling that I was used to. I think people gravitate towards common spaces and like to interact with other people. That will drive urban trends and define how cities change and grow. Ask the Economist: Selma Hepp on Economic Growth Previous: Keeping Up With Compliance Trends Next: U.S. Senate: Credit Bureaus Data Security and Equifax Home / Featured / Ask the Economist: Selma Hepp on Economic Growth Tagged with: Ask the Economist HOUSING mortgage Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago What are some of the biggest challenges facing the housing industry right now from an economic standpoint? How worried should we be about these challenges? Access to housing is becoming increasingly more challenging for the greater share of the population. I worry about affordability a lot. From an economic standpoint, we are having increasingly divergent income growth. In addition, younger generations are not equally benefiting from generational transfer of wealth, thus they are starting off in life at very different opportunity levels. I’m concerned how increasing inequality will limit ability for some to access housing, homeownership, and asset growth; and to what degree they will be able to accumulate their own wealth.We are in the middle of a technological revolution, and as with every revolution, there are winners are losers. Ideally, there should be more winners than losers, however it is hard to tell right now where we are on that spectrum. However, one-sided growth is challenging from an economic standpoint as we have seen in previous revolutions and consequent social unrests.  And lastly, we cannot emphasize enough the importance of new construction in viability of the housing industry. Some of the areas of the country that gained the most new jobs in the recent decade have not kept up with consequent demand for housing. Hence, the affordability concerns we keep talking about. To ensure economic growth persists in some of these areas, new construction is critically needed.What area of the country do you think will see the largest growth in homeownership?Affordability and access to finance and employment are critical in growing homeownership. While job growth has continued at a solid pace and is fueling demand for homeownership, affordability will be the factor determining where homeownership picks up the most. South seems to continue to be the place where opportunities for employment and homeownership are plentiful, however, I think spreading of the tech sector outside Silicon Valley will also help drive homeownership, particularly in those more affordable areas, such as Austin, Texas, for example. Unfortunately, this current hurricane season will expose more vulnerable parts of the country and, possibly, make us reconsider where we want to encourage growth. Nevertheless, homeownership in the coming years will come mostly from millennials and their employment opportunities will drive that change. It’s interesting to watch where venture capital investment is spreading across the country because I think that will drive future employment growth as well. What trends do you think the economy will see in the coming months?Absent any geopolitical maneuvers that would distract the current economic path, economic fundamentals remain generally strong. While baby boomers retiring is a concern, we are fortunate with favorable demographic force coming from the number of millennials and the generation following them, generation Z.Solid employment growth is a resultant force and possibly the only trend we can talk about with certainty right now. What remains very fluid are the potential policy changes and their impact on the economic outlook. But again, policy changes are and will remain fluid and it is very hard to talk about anything in the short future. I think it will be an interesting remainder of the year and the most important factor keeping the economy going will be optimistic consumer sentiment. Thanks to solid employment trends, consumers have remained positive throughout this year and hopefully the sentiment will remain positive in light of recent calamities and many geopolitical uncertainties. What other economic factors should we pay attention to? One factor that we are lacking in the current employment cycle is wage growth and related inflation. There are several concerns around this. One, which economists have been talking about more, is the question if we are measuring the current economy properly. Most economic measures that we rely on have been developed long time ago when the economic output looked much different. Technology changed everything and I’m not sure if we even know yet how to measure all these changes.Another concern around lack of wage growth is inability to attract skilled labor to jobs that are in desperate need of workers, such as the construction industry. One reason new housing construction has been missing in the current economic expansion is the lack of skilled labor. And lack of new construction further exacerbates affordability concerns that I mentioned earlier.But lack of skilled labor is generally a problem, not only in construction, but also in tech industry, which is one sector severely, lacking qualified labor and one that will continue to grow. Put together, we need to find ways of quickly and efficiently training our workforce for jobs that we need filled. I think that would markedly help our economic growth. in Featured, Headlines Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected] Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img October 17, 2017 1,629 Views Demand Propels Home Prices Upward 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Editor’s Note: This article was originally featured in the October issue of DS News, available now. The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Share Save The Best Markets For Residential Property Investors 2 days ago Related Articles Ask the Economist HOUSING mortgage 2017-10-17 Nicole Casperson About Author: Nicole Caspersonlast_img read more

Regulators Push Community Reinvestment Act Comment Deadline

first_img Tagged with: CRA FDIC OCC Regulators Push Community Reinvestment Act Comment Deadline CRA FDIC OCC 2020-02-20 Seth Welborn in Daily Dose, Featured, Government, News February 20, 2020 1,123 Views 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. Share Save Previous: Freddie Mac Transfers $9.1B in Risk Next: Mid America Adds to Servicing Department The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) have extended the public comment period for proposed changes to the rules implementing the Community Reinvestment Act (CRA) until April 8, 2020.The proposed rules are intended to increase bank activity in low- and moderate-income communities where there is significant need for credit, more responsible lending, and greater access to banking services.The proposal will clarify what qualifies for credit under the CRA, enabling banks and their partners to better implement reinvestment and other activities that can benefit communities. The agencies will also create an additional definition of “assessment areas” tied to where deposits are located—ensuring that banks provide loans and other services to low- and moderate-income persons in those areas.The CRA was enacted in the 1960s as a response to redlining—a practice where banks discriminated against prospective customers based primarily on where they lived, or their racial or ethnic background, rather than creditworthiness.Under the current CRA framework, the primary banking regulators—specifically the OCC, Federal Deposit Insurance Corporation, and the Federal Reserve—conduct regular examinations to evaluate banks’ activities to provide credit, services, and make investments in low and moderate-income communities where the banks operate. The act only applies to banks with federally insured deposits.The legislation was last updated in 1995. The proposed CRA rules would apply to federally insured depository institutions supervised by the FDIC and OCC, which conduct approximately 85% of all CRA activity.Chairwoman of the Housing Financial Services Committee Maxine Waters voiced opposition to , Comptroller of the Currency Joseph Otting’s proposal to update the legislation.“Under Comptroller [Joseph] Otting, the Community Reinvestment Act would become the Community Disinvestment Act. Such a radical change to the CRA demands a heightened level of public scrutiny,” she said.According to Committee member Patrick McHenry, reform of the CRA is a “long-time coming.”“The rise of mobile and online banking helps more consumers and communities than the CRA was intended to serve,” he said. About Author: Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Home / Daily Dose / Regulators Push Community Reinvestment Act Comment Deadline Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Despite Pandemic, Fewer Homeowners Missing Payments

first_imgHome / Daily Dose / Despite Pandemic, Fewer Homeowners Missing Payments Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: The Sky’s the Limit With SFR Next: How Parents Feel About the Homes They Lead Servicers Navigate the Post-Pandemic World 2 days ago 24 days ago 719 Views in Daily Dose, Featured, Journal, News The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save COVID-19 Edward Seiler Gary V. Engelhardt Michael D. Eriksen Mortgage Bankers Association (MBA) Research Institute for Housing America (RIHA) 2021-05-06 Eric C. Peck Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com. Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days agocenter_img About Author: Eric C. Peck Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago The Mortgage Bankers Association’s (MBA) Research Institute for Housing America (RIHA) found that slightly under five million households did not make their rent or mortgage payments in March 2021, an improvement from data recorded in December 2020, and the lowest number since the onset of the COVID-19 pandemic“Housing-Related Financial Distress During the Pandemic,” RIHA’s study co-authored by Gary V. Engelhardt, Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University, and Michael D. Eriksen, Associate Professor of Real Estate at the University of Cincinnati, found that 7.7% of renters (2.56 million households) missed, delayed, or made a reduced payment in March 2021, while 4.9% homeowners (2.33 million) missed their mortgage payment.”The rapidly improving economy and labor market, increased vaccination rates, and promising trend of declining COVID-19 cases all bode well for those who are still facing unemployment or underemployment because of the pandemic,” said Engelhardt. “However, millions of families are still facing economic distress, despite improving conditions since last March.”Overall, 23.7% of renters and 14.2% of homeowners have missed at least one housing payment during the pandemic, but only 8.6% of renters and 6.8% of homeowners missed more than two payments.The report found that landlords continue to play a key role in helping renters, with 76.3% of renters making all their rental payments over the last 12 months, 10.7% having missed one payment, 4.4% missing two payments, 2.5% missing three payments, and 6.1% missing four or more payments. On average, in Q1, 9.8% of renters received permission from their landlord to delay or reduce their monthly payment.Rental property owners reportedly lost as much as $7.85 billion in Q1 revenue from missed rent payments, up from over $7.41 billion in Q4. Over the past year, aggregate missed rental payments have reached $35 billion.RHIA’s analysis concluded 85.8% of homeowners made all their mortgage payments, with 5.6% missing just one payment, 1.8% missing two payments, 1.4% missing three payments, and 5.4% missing four or more payments. On average, in Q1 of 2021, 16.0% of homeowners received permission from their lender to delay or reduce their monthly payment (by week), down from 17.8% in Q4 of 2020. In aggregate, total missed mortgage payments were estimated to be approximately $13.2 billion for Q1 of 2021, versus $14.5 billion for Q4 of 2020. Over the first year of the pandemic, aggregate missed mortgage payments reached almost $68 billion.Of those receiving unemployment insurance (UI) benefits, the number of renters rose from 3% at the beginning of April 2020 to 7% by the end of September. UI benefits have trended down very slowly since, to just over 6% in the first two weeks of April 2021. The share of homeowners receiving unemployment benefits has trended slightly down to approximately 7% in the first two weeks of April 2021.”The expected acceleration in hiring and economic growth during the rest of the year should help most affected households resume their housing and student debt payments before expanded unemployment benefits expire at the end of September,” said Edward Seiler, Executive Director of the RHIA, and MBA’s AVP of Housing Economics.Click here to view RHIA’s “Housing-Related Financial Distress During the Pandemic” report. Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Despite Pandemic, Fewer Homeowners Missing Payments Tagged with: COVID-19 Edward Seiler Gary V. Engelhardt Michael D. Eriksen Mortgage Bankers Association (MBA) Research Institute for Housing America (RIHA) Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

County Council to get tough on those yet to pay 2nd home tax

first_img Pinterest Calls for maternity restrictions to be lifted at LUH By News Highland – June 19, 2012 Facebook Three factors driving Donegal housing market – Robinson County Council to get tough on those yet to pay 2nd home tax NPHET ‘positive’ on easing restrictions – Donnelly Facebook Twitter WhatsApp Previous articleDaniel O’Donnell to be awarded freedom of Donegal this weekNext articleLondon event seeks to forge new business links with the NW diaspora News Highland Guidelines for reopening of hospitality sector published center_img Google+ Newsx Adverts Twitter RELATED ARTICLESMORE FROM AUTHOR LUH system challenged by however, work to reduce risk to patients ongoing – Dr Hamilton Pinterest WhatsApp Google+ Almost 10,000 appointments cancelled in Saolta Hospital Group this week Donegal County Council says that it will, in the coming weeks, progress a number of options to ensure that all those who should have paid the second home charge, have paid the charge.Anyone who has yet to pay the charge since its introduction in 2009  currently owes €2,160.This amounts to €800 in charges plus €1,360 in late payment fees and penalties.The NPPR charge is an annual charge of €200 introduced by the Local Government (Charges) Act 2009 in respect of all residential property not used as the owner’s sole or main residence.The liability date in 2012 is the 31st March and the deadline for payment is the 30th June.In the event of non-payment, and in addition to penalties, the council says it intends to use its power to render the property non-saleable and non-transferable.The Council says to date The NPPR charge has yielded over €10 Million for Donegal Local Authorities and is seen as a very important income stream for the Council and helps to provide a wide range of services.last_img read more

Man released without charge in Andrew Allen murder investigation

first_img WhatsApp Google+ WhatsApp News Three factors driving Donegal housing market – Robinson Twitter Pinterest Facebook Man released without charge in Andrew Allen murder investigation Facebook Twitter Google+center_img RELATED ARTICLESMORE FROM AUTHOR By News Highland – February 15, 2014 Business Matters Ep 45 – Boyd Robinson, Annette Houston & Michael Margey Guidelines for reopening of hospitality sector published Previous articleESB working to restore power outages in North West as temperatures set to dropNext articleUlster Senior League Preview News Highland A man in his 40s has been released without charge in relation to the murder of Andrew Allen in Buncrana two years ago.The man was arrested on Wednesday as part of the investigation into Andrews murder, however was released from custody on Thursday night without charge.Recently Gardai stated that they believe they have identified those involved in the crime.Andrew was shot dead at his home in Buncrana on the 9th February 2012.Republican Action Against Drugs said it carried out the murder. Calls for maternity restrictions to be lifted at LUH Almost 10,000 appointments cancelled in Saolta Hospital Group this week LUH system challenged by however, work to reduce risk to patients ongoing – Dr Hamilton Pinterestlast_img read more