Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

Fannie Mae, Freddie Mac resolve just 24% of non-performing loans

NPLs sold trended lower in foreclosures than those not sold

The first nonperforming loan report from the Federal Housing Finance Agency, released today, shows Fannie Mae and Freddie Mac "resolved" just 24% of its total inventory of non-performing loans.

Further, the total government-sponsored enterprise NPL portfolio is just under 9,000 properties.

Of the 24% of NPLs sold, 12% were resolved without foreclosure and the other 12% with foreclosure.

The companies sold $8.5 billion in non-performing loans, the report states.

The Enterprise Non-Performing Loans Sales Report shows NPL sales data through May 31, 2016 and preliminary outcomes for borrowers through December 31, 2015.

The sale of NPL reduces the number of severely delinquent loans in the enterprises’ portfolios.

“This report reflects the first available results since the Enterprises started to sell NPLs and since we put in place enhanced requirements for servicing these loans,” FHFA Director Melvin Watt said.

“Because the program is new, we have only preliminary data about outcomes to share, but we will continue to provide regular reports as we gain new outcome information,” Watt said.

As of the end of May of this year, the Enterprises sold over 41,600 NPLs with a total unpaid principal balance of $8.5 billion.

The NPL’s average delinquency was 3.4 years and the average current loan-to-value ratio was 98%, according to the report.

Compared to similarly delinquent Enterprise NPLs that were not sold, which have foreclosure rates at 21%, the foreclosures for NPLs sold trended lower at 14%.

These outcomes are based only on the 8,849 NPLs that were sold by June 30, 2015 and reflect outcomes only through December 31, 2015.

The report points out that owner-occupied homes had a lower rate of foreclosure with 13% of foreclosures avoided than vacant homes, where 6.2% of foreclosures were avoided.

Recently, Ohio passed legislation that seeks to prevent zombie homes, or vacant or abandoned residential property, by enacting a fast-track process for mortgage foreclosures.

In addition, New York Gov. Andrew Cuomo signed “sweeping” legislation to reform the state’s foreclosure process and address the state’s issues with zombie homes.

The Judicial states of New Jersey, Florida and New York accounted for nearly half of the NPLs sold.

“About two-thirds of the 20 states with foreclosure inventory rates above the national average were judicial states," said Marina Walsh, Mortgage Bankers Association vice president of industry analysis in the company's National Delinquency Survey that came out in May.

Community Loan Fund of New Jersey, a nonprofit organization, won the bid on five of six small, geographically concentrated pools sold through May 2016, and is a service provider for the sixth pool.

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