Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

Investments

MoodyÕ: Falling delinquencies bolster single, multifamily HFA portfolios

Two reports show delinquencies down

Both single-family and multifamily portfolios securing housing finance agency bonds showed significant improvement in delinquency rates, Moody’s Investor Service says in two new reports. 

Following a decade of steady increases in single-family delinquencies, foreclosures have waned by 17%. Combined with a 9% drop in 60 days+ delinquencies, year-end 2014 saw a 9% decline in total delinquencies. This indicates new strengthening in these HFA loan portfolios and slower rates of foreclosures and potential loan losses.

“We expect continued improvement in HFA single-family portfolio performance buoyed by improving unemployment numbers and the upward movement of median home prices, helping homeowners faced with negative equity in their homes,” Moody’s AVP – Analyst Eileen Hawes says in the first report, “Strongest Rebound in HFA Single Family Delinquencies in 10 Years.”

Moody’s also says multifamily loan delinquencies fell to new lows of 0.30% from 0.50% over the past three years, which contributed to the strong performance of these loan portfolios and supported increasing credit enhancement.

Moody’s says a healthy national rental market will continue to support the solid performance of the multifamily portfolios, with vacancies projected to remain below 5% over the next five years.

“In 2014, only two HFAs reported losses on REO sales with losses totaling $25.6 million (0.15% of current outstanding principal) over the prior five years which is a slight improvement over 2013 levels of $25.8 million. We attribute this strong performance to the asset management strategies utilized by housing finance agencies,” Moody’s Analyst Richard Kubanik says in “HFA 2014 Multifamily Medians Reflect Strong Rental Markets Nationwide.”

Despite the solid 2014 multifamily performance, loans in foreclosure, workout or real estate owned have increased to 0.71% from 0.48% of outstanding loans, but still remain low overall.

Similarly, seven state HFAs are struggling with elevated single-family delinquencies with reported total delinquencies of over 10% for nine programs as of December 31.

The programs account for roughly 27% of the total loans in the HFA portfolios, and while elevated, the overall number of programs has fallen from 11 as of December 31, 2013. A primary factor for the higher delinquency levels revolves around the time needed to process a foreclosure.

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please