After weeks of declining numbers, slightly lower interest rates apparently spurred a modest bounce in applications for mortgage refinancing.  The Mortgage Bankers Association (MBA) said that its refinancing index which measures application volume rose by 2 percent during the week ended August 30 and the refinancing portion of all applications increased to 61 percent from 60 percent a week earlier.




Applications for purchase mortgages however fell slightly.  The seasonally adjusted Purchase Index decreased 0.4 percent from the week ended August 23, and the unadjusted Purchase Index decreased 3 percent.  The unadjusted index was 6 percent higher than the same week in 2012.  MBA's Market Composite Index, a measure of overall application activity, increased 1.3 percent on a seasonally adjusted basis from the week before and 0.3 percent on an unadjusted basis. 




MBA said that 38 percent of refinancing applications were for the Home Affordable Refinance Program (HARP) compared to 35 percent the week before.  This was the highest share for HARP since MBA began tracking the program in 2012.




Both contract and effective interest rates fell during the week.  The average contract rate for a 30-year fixed-rate mortgage (FRM) with a conforming balance of $417,000 or less decreased to 4.73 percent from 4.80 percent and points decreased to 0.33 from 0.41.  The jumbo 30-year FRM with balances over $417,000 had an average rate of 4.71 percent with 0.25 point compared to 4.78 percent and 0.34 point the previous week.  This was the second week in a row that the jumbo FRM carried a lower rate than the conforming version.




FHA-backed 30-year FRM had an average rate of 4.48 percent, down 4 basis points from a week earlier.  Points decreased to 0.03 from 0.32.




The rate for a 15-year FRM averaged 3.75 percent with 0.30 point during the week.  The previous week the average was 3.84 percent with 0.35 point.




The market share of adjustable rate mortgages (ARM) decreased slightly during the week to 7 percent.  The rate for the most popular ARM, the 5/1 hybrid, decreased 1 basis point to 3.49 percent and points were unchanged at 0.37. 




Mortgage rate quotes are for loans with an 80 percent loan-to-value ratio.  Points include the origination fee.




MBA's Weekly Mortgage Application Survey covers approximately 75 percent of all U.S. retail residential mortgage applications, and has been conducted since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.




source: http://www.mortgagenewsdaily.com/09042013_application_volume.asp




mortgage articles at Jim Clooney

 Multifamily mortgage delinquency rates dropped in the second quarter of 2013, according to a report from the Mortgage Bankers Association, further indication that the multifamily market is picking up alongside the recovery in housing. Commercial loans overall saw a decline as well.




"The quarterly decline in the delinquency rate of loans held in commercial mortgage-backed securities was the largest on record, and delinquency rates for loans held by life companies and the GSEs remain low and fell lower during the quarter," said Jamie Woodwell, vice president of commercial real estate research at MBA.




The analysis from the MBA studies commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, CMBS, life insurance companies, Fannie Mae and Freddie Mac. These groups hold more than 80% of commercial/multifamily mortgage debt outstanding when combined.




For multifamily loans held by Freddie Mac, the delinquency rate was 6.72 percentage points lower than the series high of 6.81% in the fourth quarter of 1992. The delinquency rate for multifamily loans held by Fannie Mae was 3.34 percentage points lower than below the series high of 3.62% in the fourth quarter of 1991.




In the second quarter of this year, the 60-plus day delinquency rate for commercial and multifamily mortgages held in life company portfolios inched down 0.01 percentage points to 0.08%. The 60-plus day delinquency rate for multifamily loans held or insured by Freddie Mac dropped 0.07 percentage points to 0.09%.




For multifamily loans held or insured by Fannie Mae, the 60-plus day delinquency rate dropped 0.11 percentage points to 0.28%. The 90-plus day delinquency rate for loans held by FDIC-insured banks and thrifts dropped 0.26 percentage points to 2.16%, while the 30-plus day delinquency rate for loans held in CMBS dropped 0.74 percentage points to 7.81%.




Based solely on the unpaid principal balance of loans at the end of the second quarter, delinquency rates for 60-plus day loans for Freddie Mac was 0.09%, while Fannie Mac loans saw a delinquency rate of 0.28%.




Freddie Mac Chief Economist Frank Nothaft told HousingWire that the multifamily sector is continuing to strengthen significantly and should continue doing so going into 2014.




”There have been a lot of very positive developments in the multifamily apartment market,” Nothaft said. Delinquency rates dropping and rates rising are both important for the multifamily market because it implies the revenue flow is improving, he added.




“As the cash flow improves for the owners and landlords of the apartment buildings, that helps to support their payments they need to cover their expenses,” Nothaft said.




The economist added that economic fundamentals have been very positive for the multifamily apartment market as a result of rents increasing over the past couple of years. Nothaft added that multifamily values fell during the Great Recession parallel to a drop in single-family home values; however, the multifamily market started to improve sooner.




Multifamily values are up a fair amount over the last three years, said Nothaft. They’re not at the peak levels that they were at in 2006, but they have come back and they’re about 8-10% below where they had been at their peak. “It’s much better improvement in valuation compared to single-family properties,” he added.




Low vacancy rates coupled with a strengthening economy, which will support household formation for young potential renters, will keep the multifamily sector healthy moving into next year. "Demand will support cash flow and will maintain stability with property values nationwide," said Nothaft. “It’s important to have a good cash flow," he added.




Fannie Mae Multifamily Economist Kim Betancourt said there has been ongoing demand in multifamily, both from the tenant side and the sales side of properties. "There's been a big increase in demand for purchasing these multifamily properties," said Betancourt.




Looking ahead to 2014, Betancourt said demand will remain strong, but it is unlikely that factors such as rising rates and increasing home prices will have a strong effect on demand. "It's not going to have the steep increase that it had in the past because now we're in a more moderate cycle," she said. Betancourt added that multifamily has its own demographic, so those who are unable to own a home are more likely to rent single-family homes rather than renting an apartment.




"We anticipate it's going to continue to be a nice, steady improvement for the multifamily sector," said Betancourt, who expects the delinquency rate to continue falling as we approach 2014. "To me, there's no reason why that number shouldn't continue to decline."




Source: http://www.housingwire.com/articles/26616-multifamily-delinquency-rate-decline-implies-strong-market




Jim Clooney

 Multifamily mortgage delinquency rates dropped in the second quarter of 2013, according to a report from the Mortgage Bankers Association, further indication that the multifamily market is picking up alongside the recovery in housing. Commercial loans overall saw a decline as well.




"The quarterly decline in the delinquency rate of loans held in commercial mortgage-backed securities was the largest on record, and delinquency rates for loans held by life companies and the GSEs remain low and fell lower during the quarter," said Jamie Woodwell, vice president of commercial real estate research at MBA.




The analysis from the MBA studies commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, CMBS, life insurance companies, Fannie Mae and Freddie Mac. These groups hold more than 80% of commercial/multifamily mortgage debt outstanding when combined.




For multifamily loans held by Freddie Mac, the delinquency rate was 6.72 percentage points lower than the series high of 6.81% in the fourth quarter of 1992. The delinquency rate for multifamily loans held by Fannie Mae was 3.34 percentage points lower than below the series high of 3.62% in the fourth quarter of 1991.




In the second quarter of this year, the 60-plus day delinquency rate for commercial and multifamily mortgages held in life company portfolios inched down 0.01 percentage points to 0.08%. The 60-plus day delinquency rate for multifamily loans held or insured by Freddie Mac dropped 0.07 percentage points to 0.09%.




For multifamily loans held or insured by Fannie Mae, the 60-plus day delinquency rate dropped 0.11 percentage points to 0.28%. The 90-plus day delinquency rate for loans held by FDIC-insured banks and thrifts dropped 0.26 percentage points to 2.16%, while the 30-plus day delinquency rate for loans held in CMBS dropped 0.74 percentage points to 7.81%.




Based solely on the unpaid principal balance of loans at the end of the second quarter, delinquency rates for 60-plus day loans for Freddie Mac was 0.09%, while Fannie Mac loans saw a delinquency rate of 0.28%.




Freddie Mac Chief Economist Frank Nothaft told HousingWire that the multifamily sector is continuing to strengthen significantly and should continue doing so going into 2014.




”There have been a lot of very positive developments in the multifamily apartment market,” Nothaft said. Delinquency rates dropping and rates rising are both important for the multifamily market because it implies the revenue flow is improving, he added.




“As the cash flow improves for the owners and landlords of the apartment buildings, that helps to support their payments they need to cover their expenses,” Nothaft said.




The economist added that economic fundamentals have been very positive for the multifamily apartment market as a result of rents increasing over the past couple of years. Nothaft added that multifamily values fell during the Great Recession parallel to a drop in single-family home values; however, the multifamily market started to improve sooner.




Multifamily values are up a fair amount over the last three years, said Nothaft. They’re not at the peak levels that they were at in 2006, but they have come back and they’re about 8-10% below where they had been at their peak. “It’s much better improvement in valuation compared to single-family properties,” he added.




Low vacancy rates coupled with a strengthening economy, which will support household formation for young potential renters, will keep the multifamily sector healthy moving into next year. "Demand will support cash flow and will maintain stability with property values nationwide," said Nothaft. “It’s important to have a good cash flow," he added.




Fannie Mae Multifamily Economist Kim Betancourt said there has been ongoing demand in multifamily, both from the tenant side and the sales side of properties. "There's been a big increase in demand for purchasing these multifamily properties," said Betancourt.




Looking ahead to 2014, Betancourt said demand will remain strong, but it is unlikely that factors such as rising rates and increasing home prices will have a strong effect on demand. "It's not going to have the steep increase that it had in the past because now we're in a more moderate cycle," she said. Betancourt added that multifamily has its own demographic, so those who are unable to own a home are more likely to rent single-family homes rather than renting an apartment.




"We anticipate it's going to continue to be a nice, steady improvement for the multifamily sector," said Betancourt, who expects the delinquency rate to continue falling as we approach 2014. "To me, there's no reason why that number shouldn't continue to decline."




Source: http://www.housingwire.com/articles/26616-multifamily-delinquency-rate-decline-implies-strong-market




Jim Clooney

In the aftermath of more than 2.5 million foreclosures, the Federal Housing Administration (FHA) is now offering a homeownership program that will put previously troubled borrowers on a fast-tracked return to the home ownership market. The new program, known as "Back to Work – Extenuating Circumstance," cuts the standard three-year waiting period to only 12 months.

According to Charles Coulter, HUD's Deputy Assistant Secretary for Single Family Housing,

"We understand that families occasionally experience financial difficulties that are simply beyond their control. We already have a policy allowing for exceptions to this waiting period when there is an extraordinary life event. This Mortgagee Letter is a targeted expansion of that policy.

"As part of FHA's ongoing mission" Coulter continued, "we want to make sure that qualified borrowers are not being unnecessarily shut out of the market. We 're looking forward to working with our industry partners to strengthen our housing market, to protect FHA's insurance fund, and to make certain access to credit remains available for future generations of homeowners."

That's good news for borrowers who lost their home because of specific financial hardships but can now demonstrate they have regained previously lost financial ground. The list of eligible financial hardships reads like a list of housing crisis woes:

Chapter 7 or Chapter 13 bankruptcy
Deed-in-lieu
Forbearance
Foreclosure
Loan modification
Loss of income, employment or both that totaled at least 20 percent of previous earnings for at least six months, including copies of applicable termination notices or changes in employment status
Pre-foreclosure sales
Short sales

Additionally, consumers must also meet other verifiable measures to participate in the program:

Proof of borrower's current income – usually W-2 forms or federal tax returns that show the desired mortgage would be affordable and sustainable;
Credit history pre- and post the eligible hardship event that is free from late payments or other major credit issues, including rental housing payments and accounts delinquent by 30 days or more;
Credit score of at least 500; and
Housing counseling by a HUD-approved counselor at least 30 days but no more than six months before submitting an FHA application.

For consumers meeting all of these criteria as well as other standing FHA mortgage guidelines, the Back to Work program is now available nationwide through FHA-approved lenders. Once participating lenders determine that mortgage applicants meet all eligibility and policy criteria, the same 3.5 percent minimum FHA down payment requirement will apply. Mortgage insurance and closing costs will also apply.

Only one FHA program is ineligible for the Back to Work program: reverse mortgages.

Earlier research by the Center for Responsible Lending found that more than 2.5 million homes were lost to foreclosure during the housing crisis. According to CoreLogic, a firm providing data and analysis to financial services companies and real estate professionals, the number of homes in some state of foreclosure dropped below the million-mark as of July 2013, to 949,000. This figure also represents a drop of 32 percent since July 2012.

Underwater mortgages, properties that are now worth less than their purchase price, also continue to haunt housing recovery. As of May 2013, Core Logic, the firm specializing in residential property information, found that 11 states had more than 1-in-5 underwater homes. The states with the seven highest numbers of underwater properties were Arizona, Florida, Georgia, Michigan, Nevada, California and Illinois.

As CRL has stated before, the housing crisis is not yet over. But programs that enable former troubled borrowers to regain the pride of home ownership and the chance to build family wealth have to be good news

source: http://www.atlantadailyworld.com/201309038588/Business/program-returns-foreclosed-borrowers-to-homeownership