Pandemic Reveals Weak Spots in Housing Finance

first_img Demand Propels Home Prices Upward 2 days ago About Author: Krista F. Brock Pandemic Reveals Weak Spots in Housing Finance  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Coronavirus 2020-05-22 Seth Welborn Sign up for DS News Daily Previous: The Way We Were: COVID-19’s Impact on Appraisals Next: Coronavirus Changes Disaster Response Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Pandemic Reveals Weak Spots in Housing Finance Related Articles Over the past couple of months, as the COVID-19 pandemic disrupted normal life for Americans across the country, we began to see the first ripples of disturbance to the housing and mortgage markets. Today, we are beginning to see those ripples develop into greater waves with the potential to leave widespread and long-lasting impacts. However, certain areas of the market appear less vulnerable than others.Home listings have been slashed to nearly half of what they were before the pandemic, homebuilders are quickly shifting course, and mortgage credit appears to be drying up.“When the COVID-19 crisis struck in full force in March, the housing and mortgage markets were in as good a place as they had been since the early 2000s,” wrote four housing market experts at the Urban Institute in a research paper titled, “The Mortgage Market Has Caught the Virus.”However, “These strong conditions have been upended with the COVID-19 crisis,” they said.In the housing finance market, uncertainty means risk, and risk is either taken on at a higher price or avoided altogether. Currently, investors “in every corner of the mortgage market are pulling back aggressively on their exposure to credit risk,” the paper stated.Over the past decade, the mortgage market has seen growth in non-agency loans and the debut of the GSEs’ credit risk transfer (CRT) market. Both of these sectors are on shaky ground right now.“All told, we are on course to undermine much of the mortgage ecosystem that has developed over the last decade,” said the researchers.However, there are areas of the market that remain on more stable ground amid today’s market stress, and those, the researchers point out, are the areas of the market backed by the government.Thus the researchers advocate the government play a more active role in the housing finance market on a permanent basis.“While a global pandemic is hopefully anomalous, that the mortgage market has run ashore twice in just over a decade should give us pause,” they wrote, adding that perhaps leaving major portions of the housing market unsupported by the government may be “unhelpful and perhaps simply illusory.”Instead of waiting for a crisis to hit and then scrambling to find a way for the government to provide necessary support, we should simply “acknowledge that government support will be needed in a time of crisis, and plan and pay for it.”The researchers also laid out a few short-term solutions to today’s market woes.One is for the Federal Reserve to provide support to servicers in the form of a lending facility. While millions of homeowners are relieved to have their loans in forbearance during this time, servicers are left on the hook with significant costs that the government has only partially mitigated for them.Nonbank mortgage servicers are at risk, and with a significant footprint in today’s market, instability and failure in this sector could have major implications for the market, especially for low-income and minority borrowers, the researchers stated.In the CRT market, the FHFA should first assure investors that loans in COVID-19-related forbearance will not be qualified as delinquent. They should also purchase some “modest amount of CRT securities” to help stabilize the market, according to the research paper.The non-agency market should be approached delicately, but the researchers did offer two suggestions: expand the Federal Reserve’s Term Asset-Backed Lending Facility to help boost non-agency securitization and reinstate the Treasury’s Public-Private Investment Program to provide equity matching investments for non-agency mortgage-backed securities.center_img Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share 1Save in Daily Dose, Featured, Government, News Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Coronavirus The Best Markets For Residential Property Investors 2 days ago May 22, 2020 1,527 Views Subscribelast_img read more

Read More »

Peaches and nectarines recalled in NY and 17 other states

first_imgYONKERS, N.Y. — A Yonkers-based company is recalling thousands of cartons of peaches, nectarines, and plums because they may be contaminated with listeria. No illnesses have been reported in connection to the fruits, but anyone who has purchased them recently from Walmart should return them. Kelsey O’Connor The peaches and nectarines are sold as a bulk retail produce item with PLU sticker (PLU# 4044, 3035, 4378) showing the country of origin of Chile. Though plums are being recalled in some states, they are not being recalled in New York. Read more from the FDA here. Featured image: Mike Licht/Flickr The company Jac. Vandenberg, Inc. announced it is recalling 1,727 cartons of fresh peaches, 1,207 cartons of fresh nectarines and 365 cartons of fresh plums because of possible contamination of Listeria monocytogenes, an organism that can cause serious and sometimes fatal infections in young children, elderly people and people with weakened immune systems, the FDA says. Though healthy people may only suffer short-term symptoms, the recall further states that listeria infections can cause miscarriages and stillbirths among pregnant women. The peaches and nectarines were distributed at Fairway Markets and Walmarts in New York, the FDA says. The possibly contaminated fruits were also distributed to 17 other states. Anyone who has purchased peaches or nectarines that match the description is urged to return it to the place of purchase for a full refund. Consumers with questions may contact the company at [email protected] The recall was not the result of any illnesses, but of a routine sampling program by the packaging house which “revealed the finished products contained the bacteria. The company has ceased the distribution of the product as FDA and the company continue their investigation as to what caused the problem,” the FDA says. Kelsey O’Connor is the managing editor for the Ithaca Voice. Questions? Story tips? Contact her at [email protected] and follow her on Twitter @bykelseyoconnor. More by Kelsey O’Connorlast_img read more

Read More »

Number of Covid patients in hospital falls further

first_imgAudioHomepage BannerNews WhatsApp Pinterest Facebook The number of Covid patients in hospital has fallen to its lowest level since New Year’s Day.There are 550 people with the virus in hospital this morning, while there are 135 in ICU.That’s down from 221 at the height of the third wave.There are 8 confirmed cases being treated on site at LUH – 3 in ICU.But Dr Alan Gaffney, the vice-president of the Intensive Care Society, says ICUs are still extremely busy:Audio Playerhttps://www.highlandradio.com/wp-content/uploads/2021/02/gaffney10am.mp300:0000:0000:00Use Up/Down Arrow keys to increase or decrease volume. Loganair’s new Derry – Liverpool air service takes off from CODA Nine til Noon Show – Listen back to Monday’s Programme Pinterest WhatsApp Twitter Number of Covid patients in hospital falls further Google+center_img Arranmore progress and potential flagged as population grows Important message for people attending LUH’s INR clinic RELATED ARTICLESMORE FROM AUTHOR Previous articleCovid-19: Reasons for ‘hope & optimism’ in weeks aheadNext articleMinister urged to act on double tax woes for cross border workers News Highland News, Sport and Obituaries on Monday May 24th Facebook By News Highland – February 27, 2021 Twitter Google+ Community Enhancement Programme open for applicationslast_img read more

Read More »

SemGroup shareholders approve merger transaction with Energy Transfer

first_img Image: SemGroup shareholders has approved merger transaction with Energy Transfer. Photo: courtesy of Adam Radosavljevic/Pixabay. SemGroup Corporation (NYSE: SEMG) announced its shareholders voted to approve the previously announced merger agreement whereby SemGroup will be acquired by Energy Transfer LP (NYSE: ET) (“ET” or “Energy Transfer”) in a unit and cash transaction.At completion of the merger, SemGroup shareholders will receive $6.80 per share in cash and 0.7275 of an ET common unit for each SemGroup share, or approximately 40% cash and 60% equity.The merger was announced on September 16, 2019 and the final voting results will be disclosed in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.The transaction is expected to close December 5, 2019.AdvisorsJefferies LLC acted as exclusive financial advisor to SemGroup and Kirkland & Ellis LLP acted as legal counsel. BofA Merrill Lynch acted as exclusive financial advisor to Energy Transfer and Latham & Watkins LLP acted as legal counsel. Source: Company Press Release The transaction is expected to close on December 5, 2019last_img read more

Read More »