November 2012

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LOCAL EDITION SECONDARY MARKET PENNSYLVANIA // Holliday Fenoglio Fowler, Inc. (HFF), announced it was named in the S&P SmallCap 600 index and took the fifth spot in Fortune's 100 Fastest-Growing Companies. In a release, HFF said its addition to the S&P SmallCap 600 index followed the close of trading on September 18. Fortune ranked companies they believe owning is more financially advantageous than renting. Another 28 percent view homeownership as "an investment in their family's financial future." While 7 percent cite the home Thirty-four percent said loan interest tax deduction as a motivator, the majority based on revenue, EPS growth rates, and three-year annual- ized total return for the period ended June 29. In addition to getting ranked fifth for growth, HFF was No. 3 based on profit growth in the September 24 is- sue of Fortune magazine. Through its subsidiaries, HFF operates out of 21 offices nation- wide and provides commercial real estate and capital markets services to the U.S. commercial real estate industry. Southwestern State Views Homeownership with Practicality POTENTIAL BORROWERS IN THE LONE STAR STATE DISPLAY PRAGMATIC OPTIMISM WHEN POLLED REGARDING THEIR DESIRE TO OWN A HOME. TEXAS // Homeownership, long considered part of the American Dream, continues to have mass appeal but with a slightly more practical angle, according to a survey released by the Texas Trust Credit Union, one of the largest credit unions in North Texas. The survey "spotlights a more home. A 77 percent majority feel a down payment of no more than 5 percent of the home value is affordable. Current homeowners were more tolerant of higher down payments. About 48 percent fell into the category of defining affordable by up to 5 percent of the home value. relationship with their mortgage holder was "very important or at least somewhat important." "When you consider that homeownership is viewed as a financial investment, it is no surprise that consumers view the relationship with their mortgage holder as highly important," said Richard Whitman, VP of mortgage lending at Texas Trust Credit Union. Fannie Expands HomePath, Adds New Partner NAMING PROSPECT MORTGAGE AS A FINANCING PARTNER, THE GSE IS GROWING ITS HOMEPATH INITIATIVE. pragmatic and less idealized vision of homeownership," according to a press release from Texas Trust. A large majority—83 percent— of non-homeowners revealed a desire to purchase a home "either this year or within the next five years." While 22 percent said their ticipation will give investors the opportunity to capitalize on current below-market prices on foreclosures owned by Fannie Mae, while also giving buyers the expanded ability to access financing on up to 20 investment properties," noted Doug Long, president of retail and corre- spondent lending for Prospect. Under the terms of the CALIFORNIA // Prospect Mortgage has been appointed as a new financing partner for Fannie Mae, as the government- sponsored enterprise takes steps to expand its HomePath Mortgage program. Through the collaboration with Fannie, Prospect will now be able to extend funding to borrowers who qualify for the mortgage loan initiative. "Prospect Mortgage's par- of homeowners interested in purchasing a second home said its elimination would not alter their interest. However, 8 percent said it desire is driven by emotion, such as personal pride, the majority cited financial reasons as their motivation. was important enough that they would not be interested in purchasing if the tax deduction is no longer available. Texas Trust also asked current percent was reasonable, and 23 percent felt a 20 percent or more down payment was affordable. While varying on their view Twenty-six percent felt 10 renters interested in homeowner- ship how they would define an affordable down payment on a of a reasonable down payment, renters and current homeowners came together on another issue: the importance of having a personal relationship with their mortgage holder. All together, 82 percent of survey respondents said a program's expansion, borrow- ers can gain funding for up to 20 HomePath-eligible properties. The new rules represent a sig- nificant increase to HomePath's previous standards, which lim- ited the total number of financed properties to 10 on non-owner- occupied residences. "We're delighted to have been selected by Fannie Mae as the inaugural financing partner for the expanded HomePath investor loan program," concluded Long. THE M REPORT | 79 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET

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