What an exciting show! We want to thank everyone who visited our booth and took a tour of our Encompass integration, which features some incredible tools to streamline your appraisal process. To watch the MyAMC Ellie Mae Encompass Experience 2017 Conference Video Presentation continue reading.
Over the years we have seen some tremendous advances in technology that have allowed the world to transform into a new digital age. While it is now common to shop on apps like Amazon, consumers are seeing new opportunities to use mobile applications to manage their personal finances. A Q1 2016 Fannie Mae survey shows a spike in the amount of low and moderate income homebuyers taking an interest in mobile mortgages, with prior research suggesting an even larger appetite among higher income consumers. With this in mind, it’s fair to say that we are currently undergoing a huge shift in the market.
Big Changes Coming to the Consumer Financial Protection Bureau's Sway in the Mortgage Industry as Trump Moves into the White House.
Although it's still too early to say with certainty what Trump has in mind for the housing industry, the possibility of significant regulatory change looms – especially over issues Republican policymakers have long been fighting, including banking and financial services oversight by the CFPB. The new administration is unlikely to oppose GOP plans to correct some of the perceived deficiencies in the Dodd-Frank Act, according to a statement made by Joseph Lynyak III, a partner of Dorsey & Whitney LLP, an international law firm and specialist in the inner workings of the CFPB.
Over the years, we have been keeping an eye on the so-called ‘millennial’ generation in the United States – Individuals who have a birth date between the 1981 and 2000, whom are now between the age of 16 and 35. Over time, we have gained more information as these individuals progress through school and start to make their way into careers. The oldest among this group are now well into their mid-thirties, and many are considering a home purchase..
In a recent study by Fannie Mae Economic & Strategic Research Housing Insights, cohort analysis is applied to the American Community Survey (ACS) to analyze young adult home ownership rate change for both age groups and birth cohorts The study divides recent history into three distinct periods: 1) the end of the 2000s housing and economic expansion (2006-2008); 2) the housing market collapse (2008-2010 and 2010-2012); and 3) the early housing recovery (2012-2014).
SECOND HALF OF 2016 ECONOMIC GROWTH OUTLOOK FORESHADOW FOLLOWING BREXIT UNCERTAINTY
The second half of the year is proving not to be any different from previous months. With an earlier 2% prediction, the economic growth outlook remained unchanged. This is according to the July 2016 Economic and Housing Outlook by Fannie Mae’s (FNMA/OTC) Economic & Strategic Research (ESR) Group. However, businesses are expected to face turbulence resulting from the poor production, profit deduction, and high labor costs. All these are effects of the U.S general elections and Brexit uncertainties. Also contributing to the lag of economic growth are net exports, inventory, and nonresidential investment.
Those of us in the mortgage and/or appraisal industry have experienced issues with extended turn times on appraisals. In certain markets it is difficult to find quality appraisers to complete work in a timely manner. Based on recent order volume there appears to be more demand than supply of appraisers in some areas of the country.
Are the delayed turn times caused by a shortage of appraisers? If so, why is there a shortage? There are several factors to consider when reviewing the possible causes:
Lenders expect rising demand for purchase mortgages, while credit standards stay stable.
Fannie Mae’s Mortgage Lender Sentiment Survey® from the second quarter of 2016, reveals that as we head into Q3, lender attitudes toward the housing market have become increasingly optimistic.
Surveys that were conducted in May show that lenders are reporting an increase in GSE eligible purchase mortgages and according to various sources, this has occurred over the past three months. In part because of this, as is congruent with traditional seasonal variation, growth bounced back to 70 percent on net, compared with 20 percent in Quarter 1 2016 and 71 percent this time last year (Q2 2015).
Today, the sales of homes are rising, but homeownership is going down towards record lows which is a very dangerous trend. The homeownership rate stands at a mere 63.6% when seasonally adjusted for the first quarter of 2016. This is a mere 1/10th of 1% above the all-time recorded low of 63.2% which was recorded in the second quarter of 2015.
While it can be argued that the record high of 69.4% which was reached in 2004 was artificially produced thanks to generous loans, the ownership rate dipping to below 64% is very troubling for the real estate industry as a whole.
An important deadline for lenders is fast approaching: June 27. While some lenders are ready to migrate to HUD's EAD portal, others are behind on implementation. HousingWire sat down with David Mentesana, VP of operations and client development at MyAMC, to find out what this change means, and how his company is helping lenders get prepared.
HousingWire: The deadline for lenders to migrate to HUD’s Electronic Appraisal Delivery (EAD) portal is June 27. How ready are lenders for this change?
David Mentesana: Most of the lenders we work with are ready or are in the midst of completing the necessary steps. At MyAMC, we have completed our system development and went live the last week of April. MyAMC built a direct integration interface to allow us to submit hundreds of appraisals to the portal at one time.
MyAMC executives will be attending the 2016 Appraisal Summit and Expo in Las Vegas, the country’s largest gathering of real estate appraisers.