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[ad_1] This week, the Community Home Lenders Association (CHLA) repeated their call for FHA to lower premiums and to eliminate the life of loan premium on FHA loans. While I might have a different view on the life of loan premium, I applaud their call and cannot understand why HUD has not yet lowered FHA premiums. It’s dumbfounding. In 2022, mortgage rates have risen faster than even most economists were forecasting, with 30-year fixed rates ending last week averaging 4.95%. The rise in rates has exceeded 200 basis points since early 2021, impacting those on the margin more than any other segment of the housing market. On a $400,000 loan, the difference between a 3% mortgage and a 4.5% mortgage is $340 per month to a potential homebuyer. And while many argue that the current rates, near 5%, are still low by historical standards, this difference in rate in such a short timeframe is a stinging shot to those entry-level homebuyers struggling to scrape together a down payment for their home purchase. What’s surprising to me, as someone who served at HUD during the Obama administration, is that there is virtually no rationale in holding mortgage insurance premiums at the levels they are today considering the strength of the Mutual Mortgage Insurance Fund (MMI). HUD Secretary Marcia Fudge noted this strength in her report to Congress in November, noting, “The actuarial study shows the capital reserve ratio of the MMI Fund is 8.03 percent as of September 30, 2021, an increase of 1.93 percentage points over the previous fiscal year. This increase is driven in large part by a housing market that endured the pandemic overall with strong home price appreciation nationwide, sustained low interest rates creating strong refinance volume, and positive financial performance of the HECM portfolio for the first time since 2015.” An 8.03% capital reserve ratio is record-setting from a historical perspective. When I served as FHA Commissioner, beginning in 2009 I raised premiums several times. Initially only up front as FHA was capped on how much it could raise annual premiums and then, following legislative support from Congress, raising the annual and implementing the life of loan premium. These moves were done because the fund was severely hurt by the great recession of 2008. But today, the environment is totally different and I cannot understand why the Secretary has not acted yet to lower premiums. Secretary Fudge has testified and made speeches about wanting to help improve minority homeownership outcomes. In last year’s actuarial report, HUD trumpeted that, “FHA endorsements for mortgages made to Black and Hispanic borrowers are more than twice that of the rest of the market, according to Calendar Year 2020 Home Mortgage Disclosure Act data,” which only emphasizes the importance of this program to entry-level first-time and minority homebuyers. In fact, FHA is the vehicle primarily used by first-time homebuyers, as shown in this chart (at right) presented to Congress last fall. The executive team at HUD has gone to great lengths promoting more opportunity for minority homebuyers, attacking discrimination and implementing rules to enforce discrimination violations. This leadership has been important and well received by civil rights and community housing advocates. But keeping the fees this high and thus overpricing FHA borrowers, especially now with rates rising so rapidly, hits this same constituency right in the wallet and is impacting affordability. Words are important, but actions matter more. Reporting on a HMDA data release, Market Watch reported that, “In the second quarter of 2019, the Black homeownership rate dropped to 40.6%, down seven percentage points from roughly a decade earlier,” the lowest levels since the 1960s. The Urban Institute and other think tanks have written scores of white papers and research reports talking about the challenge of improving homeownership outcomes. This is a crisis in housing access and opportunity and it’s time for HUD and the Biden administration to take action. Expanding opportunities for down payment assistance, looking at new methods to evaluate credit histories beyond FICO, getting some of the large banks back into the program, and making substantial progress in the housing supply challenge are all critical to this effort. But the most simple and helpful move can be done right now with just the stroke of a pen by mortgagee letter. Lowering the MIP will lower payments and improve the qualification ability of the FHA borrower and would have an immediate positive impact at a very challenging time in the market cycle. HUD needs to act now and lower the MIP. It’s long overdue and as a former FHA Commissioner in the last Democratic administration, and as one who had to raise premiums to secure the fund, I can state now unequivocally that this is a different time and action is needed. The call is simple: lower the MIP and lower it now. David Stevens has held various positions in real estate finance, including serving as senior vice president of single family at Freddie Mac, executive vice president at Wells Fargo Home Mortgage, assistant secretary of Housing and FHA Commissioner, and CEO of the Mortgage Bankers Association. This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the author of this story:Dave Stevens at dave@davidhstevens.com To contact the editor responsible for this story:Sarah Wheeler at swheeler@housingwire.com The post Opinion: HUD needs to lower the MIP and do it now appeared first on HousingWire. [ad_2] Source link

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[ad_1] UK police to issue first 20 fines over Downing Street lockdown parties [ad_2] Source link

[ad_1] Ukraine-Russia War Live Updates: Peace Talks Show Signs of Progress  The New York Times Russia-Ukraine war news: Live updates  The Washington Post ‘This invasion is horrifying’: What it’s like on the ground in Lviv following Russian missile attacks  CNN NEW: Russia cutting back military operations in Kyiv | LiveNOW from FOX  LiveNOW from FOX Russia to scale back military activity toward Kyiv, Chernihiv as part of peace talks: Putin defense official  Fox News View Full Coverage on Google News [ad_2]

[ad_1] Indian Millennials are financially prudent. However, they need to be guided when it comes to life insurance, according to a survey done by Tata AIA Life Insurance with Indians in the age group of 22 – 35 years. The survey shows people in the age group of 30-35 years are better at financial planning, with 44 per cent remaining unaffected by the economic impact of the Covid-19 pandemic. Covid-19 hit hard across the world, and India was one of the most affected countries. Interestingly though, young Indians’ savings were not severely impacted. 40 per cent of the respondents did not alter their savings plan during Covid-19. The company claims Indian Millennials seem to have realized the importance of maintaining a healthy savings regime even as the external scenario remains uncertain and ever-changing. Even as Covid-19 impacted the country and the world in recurring waves, data from the report states, more than 64 per cent of the respondents in the chosen age group either maintained or increased their savings during the pandemic. If one were to break the Millennials further into age bands, the results were truly encouraging – while 70 per cent of those in the age group 30 – 35 increased or maintained the proportion of savings, 68 per cent of those in the 22 – 25 years age band displayed similar behaviour. This indicates that people are showing responsible financial behaviour from an early age. While ensuring a healthy savings ratio, the insurance company says, Indian millennials across age bands believe in planning their own investments rather than depending on others. This shows their level of confidence in themselves. Given their comfort in accessing online platforms and researching the entire process, this trend is poised to continue in the future. It was only in the youngest age band within Millennials i.e., 22 – 25 years wherein 1 in 5 respondents showed dependency on their parents in deciding on the right financial investment. On the other hand, the report showed 90 per cent of those in 26 – 29 and 96 per cent of those in 30 – 35 took their own decisions when it came to financial planning and investing. When one looks at the geographical differences, the findings are not surprising. Those in metros did show a higher level of independence with 93 per cent taking their own decision regarding financial planning. This behaviour was marginally lower for those in Tier 1 and 2 towns with 89 per cent taking their own financial decisions. Interestingly, the report states, a small percentage of respondents in metro and tier 1 cities relied on financial experts whereas those in tier 2 relied completely on their parents when not taking their own decision regarding putting their hard-earned savings into the right instrument. Amid the encouraging habits toward financial prudence, the company states Indian Millennials are yet to become fully aware of and understand solutions such as life and health insurance. While 57 per cent of those in the 30 – 35 age group were aware of life insurance, only 20 per cent among the 22 – 25 years affirmed this aspect. Similarly, when it came to health insurance, 57 per cent between 30 – 35 years were aware of the category but only 19 per cent responded in the positive among the 22 – 25 years age band. Interestingly, among those who had secured themselves with life insurance, 43 per cent believed they were adequately protected. However, a similar 41 per cent felt the other way, being unsure if they had taken a policy with sufficient cover. The company says, this clearly indicates the need to equip Indian Millennials with the right information and understanding of the level of insurance required as they move through different life stages. Venky Iyer, EVP and Chief Distribution Officer say, “The survey clearly indicates the need for insurers to work hand in hand with younger consumers to help them understand the level of insurance that they need as they progress through different stages in life. At the same time, it is important for us to help them appreciate the diverse solutions that life insurance offers across protection, savings, retirement, and wealth generation-oriented offerings, thereby ensuring that they are well secured while they strive to do their best in all walks of life.” Key Survey Findings;·         The survey reveals that young Indians’ savings were not severely impacted during the pandemic period. ·         40 per cent of the respondents did not alter their savings plan during the Covid-19 period. ·         Young Indians seem to have taken cognizance of the uncertainties and have increased their savings to counter future emergencies. ·         30 per cent of people in the age group of 22-25 years have upped their savings ratio as learning from the Covid-19 catastrophe. ·         Most of the respondents across the age band 22 – 35 years continued to save even amid the uncertainties introduced by Covid-19.·         When it came to life insurance, those in the younger age band i.e., 22 – 25 showed low awareness.·         Amid the aware and invested in life insurance, 41 per cent were not sure if they were adequately secured.  [ad_2] Source link

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[ad_1] Bharat Bandh Live News, Bharat Bandh Today Latest Updates: The two-day nationwide strike by central trade unions to protest against the government policies entered its second day on Tuesday, impacting normal life in some parts of the country. In Delhi, banking services remained impacted partially, as a section of bank employees came in support of the nationwide strike called by central trade unions. A joint forum of central trade unions is protesting against the government policies affecting workers, farmers, and people. Their demands include scrapping of Labour Codes, no privatisation in any form, scrapping of National Monetisation Pipeline (NMP), increased allocation of wages under MNREGA (Mahatma Gandhi Rural Employment Guarantee Act) and regularisation of contract workers. [ad_2] Source link

[ad_1] Transport yourself back to 2019. It’s 9 a.m. You are suited, showered and seated behind a desk in a bustling office. Industry newsletters are reporting that mortgage lenders are tightening their belts as the cost to manufacture a loan peaks at a decade high of $9,299. Then boom! In March 2020 all of that changed. Lenders’ focus on tightly managing margins was replaced by the need to triage an unprecedented surge in refinance volume, which led to a record-shattering $4.3 trillion in U.S. mortgage loan originations, the largest annual volume on record since 2005. Now, after two years of drinking from a firehose, mortgage lenders must pivot once again to succeed in the vastly different lending landscape that lies ahead. In its December 2021 Mortgage Finance Forecast, the Mortgage Bankers Association (MBA) predicted total mortgage originations will fall 33.6% in 2022, representing a decline in volume from $3.9 trillion in 2021 to $2.6 trillion in 2022. This precipitous drop in originations is grounded in forecasts that higher interest rates will result in a 62.5% year-over-year decrease in refinance volume and the rise of a purchase market. Amid our industry’s only constant — variability — it should come as no surprise that mortgage lenders are craving ways to more tightly measure, monitor and optimize business and employee performance. Fannie Mae’s Q2 2021 Mortgage Lender Sentiment Survey found that lenders’ top-two business concerns are process streamlining and talent management. These concerns were echoed in a survey conducted by The Mortgage Collaborative, in which mortgage lenders indicated that two of their top-five concerns are “scaling and modernizing the loan manufacturing process to better insulate against volume fluctuations” and “measuring operations and employee productivity.” Data-based performance management is critical to ensuring that each area of an organization is operating in tandem to meet the needs of its customers and is staying profitable. To succeed in a purchase market, lenders should track the following 10 metrics. Important lead metrics Top referral sources: Purchase mortgage loan transactions require a village compared to their refinance counterparts. And this village of referral partners is a vital source of lead generation. Now is the time for lenders to take inventory of businesses that have referred borrowers and also evaluate the landscape of the prospective real estate agents, builders, insurance agents, financial advisers and settlement partners operating in the local market. Setting networking goals and strategically pursuing relationships with partners can generate a steady stream of business that is especially important in a purchase market. Referral source lead-to-fund conversion rates: That said, not all referral partners are created equal. If you are putting a lot of energy into nurturing a referral partner who sends you business, but those loans rarely make it to funding, then perhaps it is time to reallocate that energy to building inroads with different connections. Similarly, tracking referral source lead-to-fund conversion rates may uncover types of businesses that are more reliable sources of qualified leads. In this case, it may be prudent to strengthen existing connections with successful partners or network with similar businesses. Important pipeline metrics New applications by purpose type (purchase and refinance): Keeping a pulse on how purchase and refinance applications are trending is the single best indicator of near-term volume. If refinances are waning and purchase applications are not gaining steam, this can indicate a need for more lead generation activity, which can take many forms. Lenders may want to increase advertising, deploy marketing campaigns to past customers or encourage loan originators to get in the field and drum up new relationships. Expiring locks trends: If the number of loans with locks expiring is trending up, this is a key indicator worth digging into. There are a multitude of reasons for increased lock expirations, some of which are internal, some of which are external to the organization and all of which need to be managed accordingly. When lock expirations trend up, it usually indicates an opportunity for stronger pipeline management. A common culprit of lock expirations is longer appraisal turnaround. Whereas refinance transactions frequently receive appraisal waivers, appraisals are required for the majority of purchase loans. Markets with insufficient appraisers may see lengthy or variable appraisal timelines and LOs should be coached to monitor loans accordingly. If lengthy processing or underwriting times are the cause of lock expirations, this is also worth drilling into. Perhaps there is a staffing, process or operational bottleneck that needs to be addressed. Whatever the cause — to ensure an organization is meeting customer expectations, maintaining positive investor relationships and running profitably — an uptick in lock expirations should always be addressed. Pull-through, app-to-lock: Tracking app-to-lock pull-through provides insight into the number of borrowers who have committed to finishing the loan process and is one of the first two metrics that should be examined if volume is trending down (the other metric that should be examined is application volume). Low app-to-lock pull-through may have a number of causes. For instance, a branch may be pricing itself out of its market. Or perhaps borrowers are not being offered the loan programs they need, such as down payment assistance. If a branch is staffed with LOs whose sole or primary experience is refinance loans, lenders should consider offering training to ensure staff is equipped with the knowledge to sell loan programs relevant to their local market. Important production metrics Average days in pipeline: The average number of days it takes to go from application to funding provides insight into how well the loan manufacturing process is performing. Variances that cannot be explained by a shift in loan purpose type should be investigated to ensure that commitments to borrowers are upheld and staff has sufficient resources. By examining your loan pipeline by channel, loan purpose, loan program, position and individual, problem areas can quickly be identified. For instance, if portfolio loans are stalling at the ‘approved with conditions’ milestone, digging deeper can reveal why those particular loan programs are getting stuck. Perhaps underwriters are responding to the loan

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