TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/113472
Local Edition ORIGINATION The price recovery is being helped along by declines in foreclosure sales, which sell at deep discounts and drag down surrounding prices. According to FNC, foreclosures made up 20 percent of total home sales in November, up from 17.6 percent in October but down from 24.8 percent year-over-year. Homeowner Bill of Rights in the Spotlight Nationwide Title Clearing released a new white paper examining the Golden State's recently enacted Homeowner Bill of Rights. Mississippi // Rising demand driven by the forces of supply and demand at this point. "An imbalance between rising demand and limited supply continues to be an important factor for sustained price momentum," FNC said in a release. "While signs of market recovery have instilled confidence and driven up demand as potential homebuyers take advantage of low prices, the supply of homes for sale has been constrained due to rising homeowners' expectations about a continued price increase in many fast-rising markets." FNC's smaller-scale indices show similar trends. Nineteen of the markets tracked in the FNC 30-MSA composite showed month-over-month price improvement, with Las Vegas leading the pack (3.4 percent over October). On a yearly basis, Phoenix outpaces the rest of the country by a wide margin, reporting a 21.4 percent price improvement from November 2011. At the other end of the spectrum, Chicago continues to lag in terms of price gains, posting 1.8 percent depreciation from The M Report | 57 se c on da r y m a r k e t Reflecting a better balance of supply and demand in the marketplace, FNC's Residential Price Index showed promising improvements to end 2012. California // Nationwide Title Clearing, Inc. (NTC), a Floridabased leading service provider to the mortgage industry, released a new white paper detailing the recently enacted California Homeowner Bill of Rights. The bill, which passed in parts over the course of several months in 2012, went into effect at the start of 2013. The law restricts a number of servicing practices (including dual-tracking) and establishes requirements for foreclosure alternative efforts, among other things. In the white paper, NTC chief legal officer Myron Finley says the new law is just the beginning for the mortgage lending industry. "There is little doubt that the provisions of the California Homeowner Bill of Rights will materially alter the contours of the mortgage lending industry in that state," Finley wrote. "Moreover, as other states watch its implementation and the effects it has on that industry, it could well become a model for mortgage reform in those states. Anyone involved in the mortgage industry will be well advised to watch this issue to see how it impacts the nature of mortgage lending and servicing in the future." The paper goes on to offer an analysis of the law and its likely impact on staffing and documentation. a na ly t ic s FNC Reports Largest Yearly Price Increase in 6 Years and limited supply continued to drive up home prices in November 2012, according to the latest Residential Price Index (RPI) data from FNC, Inc. Based on recorded sales of non-distressed properties— including both new and existing homes—in the 100 largest metropolitan statistical areas (MSAs), the FNC 100-MSA composite index shows prices rising 0.3 percent at the national level in November. According to FNC, November was the ninth straight month to see prices climb higher, leading October and 0.8 percent depreciation from November 2011. Year-to-date, all markets in the 30-MSA composite are up, with Phoenix ranking at the top (23.6 percent) and Chicago trailing at the bottom (0.7 percent). s e r v ic i ng to a total appreciation rate of 5.3 percent year-to-date. For the 12 months ending in November, prices rose 4.2 percent, the largest year-over-year increase since October 2006. While rising sales and moderate economic growth are helping fuel price gains, FNC says the recovery is mostly being Or ig i nat ion "The MPF Program lets community lenders offer their customers home loans at a competitive price, which means borrowers can continue to work with their local lending institutions they know and trust," said Eric Schambow, SVP and director of MPF, "and Federal Home Loan Bank [FHLB] members can take advantage of their existing relationship with their FHLB." The program allows smaller community banks to compete with larger lending institutions in the mortgage market. Participating lenders also benefit from additional training and support, including access to Fannie Mae's Desktop Underwriter to help with credit risk assessment. MPF also offers MPF Xtra, which sells loans directly to Fannie Mae. Use of this product more than doubled last year. In 2012, the product served more than $6.94 billion in loans, up from $2.81 billion in 2011.