[Expert commentary] There appears to be a concerted, well-funded campaign out there spreading the myth that Congressional GSE reform is bad for small lenders. As a small-to-midsize lender myself, I promise you that this idea is false. In fact, the single biggest risk to small lenders is that Congress doesn’t act and the GSEs are allowed to recapitalize and are released from conservatorship without first being reformed.
In the wake of the financial crisis, nonbank lenders and servicers have witnessed a significant emergence in the mortgage business. In fact, independent mortgage banks are heavily dominating the single-family market. Yet misperceptions persist about the capacity of these IMBs and other nonbanks.
[Subscribers only] Multigenerational living, where two or more adult generations live under the same roof, is becoming a growing trend in the U.S. Currently about 19% of Americans now live in a multigenerational household, the highest level since 1950. That amounts to about 60.6 million adults in 2014, up from 57 million adults in 2012. And homebuilders have taken notice, designing houses specifically catered to this segment.
Would-be homeowners are inundated with picture-perfect examples of new and remodeled homes brimming with upgrades. But in the real world, homebuilders and investors must calculate the rate of return on these sometimes fleeting trends, weighing what buyers want with what they can actually afford. This feature looks at which features buyers of different age demographics consider the most important, and what that means for sellers.
We’ve found that the handling and posting of payments during bankruptcy has been a widespread issue in our testing environment. Specifically, there is increased risk exposure in pre-and post-petition payment application and treatment, both inside and outside of the bankruptcy plan. Servicers and sub-servicers have created manual workflow workarounds to address the issue, however, it does open the servicer up to more exposure to calculation errors.