Will Freddie Mac Require Another Draw from Treasury?

first_imgSign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago In light of the substantial decline in profitability of both Fannie Mae and Freddie Mac for 2014, Urban Institute senior fellow Jim Parrott, a former economic adviser to President Obama, examined the likelihood of Freddie Mac making another draw from the U.S. Department of Treasury in a research brief published Monday entitled “What to Make of the Dramatic Fall in GSE Profits.”A hugely profitable year in 2013 for both Fannie Mae ($84 billion) and Freddie Mac ($49 billion) shifted widespread speculation from winding down the two GSEs to instead ending FHFA’s conservatorship of the two Enterprises, which began in September 2008 after the two received a combined $188 billion from Treasury in bailout funds.The 2014 profits for the GSEs, however, fell way short of their 2013 numbers ($14 billion for Fannie Mae and $8 billion for Freddie Mac), including a 90 percent year-over-year decline in profits for Freddie Mac during the fourth quarter of 2014.When the losses for the GSEs exceed their capital buffer – which is $1.8 billion for 2015 – the Enterprises would require a draw from Treasury, which they have avoided since 2012 (in 2012, the terms of the 2008 bailout agreement were amended, and since then nearly all GSE profits have been swept into Treasury). The GSEs’ capital buffer is being reduced by $600 million per year until it is extinguished completely in 2018.The reason for the loss in profits for both institutions is that much of their revenue streams in 2013 were largely disappearing, according to Parrott. About half of the profits for both Enterprises that year came from reclaiming written-down tax assets ($45 billion for Fannie Mae and $23 billion for Freddie Mac); between a quarter and a third of the profits came from their portfolios ($19 billion for Fannie Mae and $16 billion for Freddie Mac), and each received a significant sum from legal settlements, though it is difficult to determine exactly how much due to the dispersement of the settlement funds among larger revenue streams.”The only major revenue source not being wound down is what the GSEs generate from their core guarantee business, in which they collect a fee in exchange for guaranteeing the default risk of loans for investors,” Parrott wrote.The primary source of profits for the GSEs in 2014 came from guarantee fees – $9 billion out of $14 billion for Fannie Mae and $4 billion out of $8 billion for Freddie Mac.Parrott says he believes that it is unlikely Freddie Mac will need to make a draw on Treasury for three reasons: first, he expects Freddie Mac’s accounting losses on its derivative position to reverse as interest rates rise; second, Parrott said Freddie Mac’s portfolio will still be significant for the next couple of years; and third, Freddie Mac’s older loans with lower guarantee fees will gradually be replaced with new loans that have higher guarantee fees, which will result in an increase in revenue.But while he said he does not believe Freddie Mac will require a draw in the immediate future, that may change a couple of years down the road.”When the private-label securities market finally comes back and Freddie’s market share decreases, so will the revenue from its guarantee business,” Parrott wrote. “And if Freddie finally opens up its credit box, Freddie will expose itself to more risk and, depending on how well it prices that risk, more volatility in its earnings. No longer able to counter losses in this business with gains on its portfolio investments, Freddie becomes increasingly exposed to changes in the economic environment. In short, Freddie’s risk of a draw goes up.”Freddie Mac has a $140 billion line of credit with Treasury, however, so if the Enterprise did require a draw, “substantively, not much” would happen in the immediate future, Parrott wrote. However, investors will begin to demand a discount to cover the risk should Freddie Mac’s draw eventually exceed the line of credit amount. Previous: Non-Profit Awards $44.8 Million Through Foreclosure Mitigation Counseling Program Next: FHFA Director ‘Very Proud’ of Agency’s Progress on Strategic Plan Initiatives March 16, 2015 1,201 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Tagged with: Bailouts Fannie Mae Freddie Mac GSE Profits U.S. Department of Treasury Urban Institute Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days agocenter_img  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Bailouts Fannie Mae Freddie Mac GSE Profits U.S. Department of Treasury Urban Institute 2015-03-16 Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Will Freddie Mac Require Another Draw from Treasury? Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Brian Honea in Daily Dose, Featured, Government, News Home / Daily Dose / Will Freddie Mac Require Another Draw from Treasury? The Best Markets For Residential Property Investors 2 days agolast_img read more

RedVision Announces New Business Structure to Enhance Customer Experience

first_img Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Xhevrije West RedVision Announces New Business Structure to Enhance Customer Experience RedVision, an independent national provider of title and real property research solutions based in Parsippany, New Jersey, recently announced in a press release the completion of their new business structure called the Customer Relationship Management (CRM) team to align cross-organizational resources across all points of the customer life cycle. The addition of this group will strengthen the company’s ability to focus on enriching the customer experience while nurturing and enhancing the value of its market-validated solutions.Christine LaChance, VP, director of client relations, customer relationship management, will oversee the new CRM structure to further develop the company-wide, ‘customer-centric’ mindset, the company says. LaChance will lead the implementation and advancements of client transaction visibility and pipeline management, enhance onboarding efficiencies to shorten the customer transition timeframe, and reduce response times to increase customer service availability. These advancements will ensure a more seamless and effective customer experience so RedVision’s customers can best serve their respective customers.“We structured the company to see the world through the lens of our customers,” said Leanne Zinn-Cox, EVP of sales and marketing at RedVision. “Our customers rely on us to fulfill their commitments to their customers. The addition of the CRM team at RedVision will help reinforce best-in-class service, consistent best practices and product quality standards to drive continuous customer success. Christine’s experience and passion for providing exceptional customer service and value enables us to continue to drive innovation in the marketplace.”LaChance, who joined RedVision in September 2014, previously held strategic leadership positions at First American Title Insurance Company, Inc. With her extensive background in title operations, LaChance can appreciate the urgency and demands of this industry, which enables her to lead the CRM team by example and elevate RedVision’s customer-centric practices with faster response times to client inquiries and shorter onboarding periods from initiation to order capability. LaChance brings a unique combination of national title and settlement service experience, operational excellence and leadership along with a customer-centric management approach to this role. With a certified Six Sigma background in continuous improvement and strategic initiatives, LaChance strategically positions and trains the RedVision CRM team to provide world-class service in every customer interaction.“RedVision has demonstrated a commitment to exceeding customers’ expectations with its single-source solutions resulting in uniform products and quality standards across all 50 states,” says LaChance. “The CRM structure further enables RedVision to implement continuous customer value improvement strategies while providing industry-best technology solutions.”Prior to leading RedVision’s new Customer Relationship Management Team, LaChance served as RedVision’s vice president, southeast regional director.Before joining RedVision in September 2014, LaChance held several management positions at First American Title Insurance, Inc. in Largo, Fla. Her last position there was Director of Business Integration. She started her career at First American Title Insurance in 2005 as manager of centralized support and, in 2009, became the company’s business planning director before assuming her last position in 2011. New Jersey RedVision Title and Real Property Solutions Providers 2015-07-08 Brian Honea Is Rise in Forbearance Volume Cause for Concern? 2 days ago Tagged with: New Jersey RedVision Title and Real Property Solutions Providers in Featured, News Servicers Navigate the Post-Pandemic World 2 days ago Share Save The Best Markets For Residential Property Investors 2 days ago  Print This Postcenter_img Related Articles The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Featured / RedVision Announces New Business Structure to Enhance Customer Experience July 8, 2015 946 Views Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily Previous: HUD Announces Final Rule to Further Fair Housing In HUD-Funded Communities Next: GSEs Partner With Industry to Form Advisory Group For Common Securitization Platform Subscribelast_img read more

Fannie Mae Utilizes Technology to Achieve Housing Goals

first_img Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Share Save Fannie Mae Utilizes Technology to Achieve Housing Goals  Print This Post Sign up for DS News Daily Fannie Mae has built a strong and flexible technology organization in order to help the Enterprise more efficiently achieve its goals, which are to help provide people with access to affordable mortgage credit and to reduce risk to the taxpayer, according to a commentary from Bruce Lee, SVP and Chief Information Officer at Fannie Mae.”When we announced in December 2014 that Fannie Mae would again purchase loans with as little as 3 percent down payments, our technology organization worked to update our systems quickly so that lenders could begin delivering these loans to us within days,” Lee said. “Thousands of families have benefited from this loan option.”Today, various Fannie Mae technology tools that run on an interconnected technical infrastructure are used by lenders and servicers to help at-risk borrowers prevent foreclosure, to underwrite mortgage loans, and to subsequently check the quality of those loans. Those tools include:Desktop Underwriter (DU), which has been used for more than 20 years, and has been continually enhanced during that time. DU is a comprehensive underwriting system that helps lenders evaluate loans and determine if those loans meet the credit risk standards and eligibility criteria set forth by Fannie Mae. It has helped lenders provide mortgages to millions of Americans at an increased speed and lower cost.Collateral Underwriter (CU), which builds on the success of DU. It helps reduce risk for Fannie Mae and lenders by helping lenders evaluate appraisals for loans and ensuring values are appropriate and property information is accurate. Lee said that CU “is a key part of building a stronger housing system for the future. We recently integrated CU with DU to further support our lenders’ risk management and underwriting capabilities.”EarlyCheck helps lenders identify potential problems earlier in the process, which provides greater certainty that the loan will meet Fannie Mae’s eligibility requirements. Lenders who use EarlyCheck have the opportunity to fix potential issues prior to selling the loan to Fannie Mae, which reduces the risk of repurchase.Servicing Management Default Underwriter (SMDU) helps those who service Fannie Mae loans determine what loss mitigation options are available to borrowers who are struggling to make mortgage payments. With SMDU, servicers can make real-time decisions to help those borrowers prevent foreclosure through any number of loss mitigation options (loan modifications, short sales, repayment plans).Technology is also playing a key role in reducing Fannie Mae’s risk profile, Lee said. “In order to build our Connecticut Avenue Securities (CAS) offering, which allows investors to take some of the credit risk that Fannie Mae traditionally held on loans in its book of business, we had to build a new set of tools, platforms, and reporting capabilities,” he said. “In addition, technologies such as Desktop Underwriter and Collateral Underwriter help to reduce risk on the loans that Fannie Mae acquires. These tools have been instrumental in transferring a portion of the credit risk on nearly $400 billion of mortgages since 2013.” Previous: DS News Webcast: Thursday 9/24/2015 Next: Fannie Mae Completes Risk Sharing Transaction for $7 Billion Worth of Loans in Daily Dose, Featured, News, Technology Tagged with: Fannie Mae Mortgage Credit Access Technology Subscribe Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago September 24, 2015 1,542 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Fannie Mae Utilizes Technology to Achieve Housing Goals About Author: Brian Honea Fannie Mae Mortgage Credit Access Technology 2015-09-24 Brian Honealast_img read more

Fed: U.S. Economy is ‘Not Running Hot’

first_img  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Share Save Tagged with: Federal Reserve Interest rates U.S. Economy Previous: Colorado Supreme Court Rules on Potential Deceptive Practices Next: Can Local Governments Impede Housing Markets? Federal Reserve Interest rates U.S. Economy 2016-07-06 Brian Honea The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily July 6, 2016 1,256 Views center_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Fed: U.S. Economy is ‘Not Running Hot’ Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Fed: U.S. Economy is ‘Not Running Hot’ The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago The Federal Reserve  announced it would wait for the U.S. economy to stabilize a bit more before raising interest rates.The Fed released the minutes of its June Federal Open Market Committee meeting Wednesday, saying that given the pace of improvement in labor market conditions, which slowed in April and May, and the faster-than-expected rise in the gross domestic product, “consumer price inflation continued to run below the Committee’s longer-run objective of 2 percent.”That 2 percent figure was mentioned by Fed Governor Daniel Tarullo shortly before the minutes came out. At a Wall Street Journal event in Washington, D.C., Wednesday morning, Tarullo said that there is no need to raise interest rates until he is “more convinced that the underlying rate of inflation is around 2 percent.”The latest inflation rate, from May, is 1.02 percent.“This is not an economy that’s running hot,” he said.In addition, Tarullo said that the timing for a rate hike does not work now, a week after release of the Fed’s annual stress test results for big banks and so soon after the Brexit vote.Much of what the Fed is waiting on is the job market. According to the June minutes, “although the rate of private-sector job openings remained elevated, the rate of hires declined in both March and April and the rate of quits was unchanged.”Daniel TarulloThis translated into slightly higher, but still-low, initial claims for unemployment insurance benefits compared to April, “Labor productivity growth remained slow over the four quarters ending in the first quarter of 2016,” the minutes stated.Tarullo told the Journal that the Personal Consumption Expenditures index, the Fed’s main barometer for gauging inflation, rose to 1.6 percent year-over-year in May, from 1.3 percent last October.The whole package, he said, “is not enough to this point to convince me that the  rate [of inflation] is headed in a non-transitory way” towards the that wanted 2 percent.Rates remaining low, he said, should not trigger any bubble-and-bust dynamics in the near future. Still, he worried about pessimistic views of the market.“If markets do regard economic prospects as only modest or moderate going forward,” he said, “then raising short-term rates is almost surely going to flatten the yield curve, which generally speaking is not good for financial intermediation, and in some sense could exacerbate financial stability concerns.” About Author: Brian Honea The Best Markets For Residential Property Investors 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Servicers Navigate the Post-Pandemic World 2 days ago Subscribelast_img read more

Four Ways to Improve the Housing Market

first_img market reform presidential candidates 2016-07-25 Brian Honea Sign up for DS News Daily Four Ways to Improve the Housing Market The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: Obama and Warren Reflect On Wall Street Reform’s Progress Next: Boomerang Buyers Bounce Back Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago In the wake of national presidential conventions and debates conducted over controversial topics to better inform voters as these candidates move closer to the election in November, one of the topics hardly touched in these discussions has been the housing market and its reform. Chief Economist for Redfin, Nela Richardson, believes that there are four things these candidates need to keep in mind to “make the housing market great again,” according to a report from Redfin.Ignore Mortgage Finance ReformRichardson says that reform of Fannie Mae and Freddie Mac and other such insurers has been controversial for “longer than millennials have been alive” but despite the agreement that government involvement should be reduced, Richardson says that there is nothing to replace them with as of right now. She suggests that whomever wins the presidency should focus on figuring out a solution for how private capital can be placed back into the mortgage market in order to have viable alternatives to Fannie Mae and Freddie Mac.Connect affordability to mobility“Too often a person’s zip code determines their economic mobility,” says Richardson. She states that almost half of the totality of renters are cost burdened and a quarter of those are classified as being “severely” cost burdened. In her report, Richardson says only one in four people who qualify for federal subsidies actually receives them. She feels that the next president can help better the market by increasing subsidies to households who need them and helping them move to better thriving communities near jobs and functional schools.Increase BuildingRichardson says that increasing building is important to the betterment of the market, but included in this equation must be more transit and infrastructure spending in order to make sure neighborhoods don’t suffer due to isolation or neglect. “Political dysfunction in Congress has prevented the federal government from making the infrastructure investment needed in America’s cities,” says Richardson. “Our families pay the price.”Remembering the “Rust Belt”This final point is shared as something personal to Richardson, who says that some towns facing decay do to foreclosure never came from the housing market boom or bust. Instead, she says they are due to something far more long lasting i.e. job loss and population decline. “It’s an open question whether foreclosure-choked neighborhoods will ever be a good investment for a new generation of homebuyers,” says Richardson. The answer she sees for these communities comes from jobs and reinvestment into local economies before “homeownership can become a great investment again.” About Author: Kendall Baer Tagged with: market reform presidential candidates Home / Daily Dose / Four Ways to Improve the Housing Market Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, TX. Born and raised in Texas, Kendall now works as the online editor for DS News. Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago July 25, 2016 1,497 Views  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

Worthy of its Name

first_img Jenn Q. Goddu is a freelance writer and editor living in Charlotte. Her work has appeared in The Chicago Tribune, The Chicago Sun-Times, The Charlotte Observer, Midwest Real Estate Journal, and more. As a Canadian, she particularly appreciated getting to talk hockey for this feature. Share Save The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Worthy of its Name Governmental Measures Target Expanded Access to Affordable Housing 2 days ago It seems entirely possible that before joining Alacrity Services, one might be asked to define “alacrity.” While actively expanding its property restoration services to insurance, REO, and consumer customers nationwide, the company is determined to continue embodying the true meaning of its moniker: moving nimbly and with good spirit. “We often talk not only about someone’s fit in the role but also about their cultural fit and making sure they have a similar drive,” said Keith C. Hemmer, Alacrity’s Chief Business Development Officer. Alacrity’s 150+ employees—whether in the Eugene, Oregon, head office, or the new Charlotte, North Carolina office, or working remotely from locations across the country—are working in a family-oriented business. “First and foremost, we tend to treat each other as family,” Hemmer said. “Employees don’t hesitate to go above and beyond their daily job duties to do whatever is necessary to get the job done.”A willingness to be available when needed is also essential within the restoration and repair space. “It’s a 24/7/365 job,” Hemmer said. “We’re available whenever and however you need us to be . . . We’re there for you whenever an event may arise.” After all, according to company CEO Jonathan Miko, “There is a low apparent bar to admission into this industry. Everybody thinks they can build a contractor network, and they are popping up all of the time. Very few of them actually succeed, but we need to be able to deal with the reasons these new networks pop up. What is it they think they can leverage to be successful? And is it real or is it a mirage?”First Foothold in Insurance ClaimsThe Alacrity Services model was born in 1999 at then Atlanta-based engineering firm Project Time & Cost. The idea was to solicit contractors to create a network of service providers who could quickly and cost-effectively address insurance carrier claims. The pilot concept launched locally with one main insurer client in 2000, and within a year, it expanded to fill that client’s needs across the country.The business rebranded as Alacrity Services in 2002. With insurance carriers so focused on customer service and paying claims quickly, the company promised its namesake—alacrity—in connecting insurers to credentialed contractors and providing warranties and guarantees. Today, Alacrity touts a network of 1,700 credentialed contractors. While competitors might claim larger numbers of available contractors, Alacrity’s management team is unfazed by that marketing ploy. After all, the goal of the network has remained the same over the last 18 years: Provide a consistently reliable and efficient end-user experience every single time. Instead of being concerned with the numbers, Alacrity has focused on  “right-sizing” their network. This approach allows them to provide contractors with steady work, and the company still has the ability to scale up the contractor network size if needed. Success was founded also on Alacrity’s proprietary web-based software AlacNet®, standardizing costing procedures and expediting communications between financial institutions or insurance companies, insured parties, claims adjusters, and contractors. In 2011, the company’s success administering and managing property damage casualty insurance claims, and its robust customer service throughout the process by regional field managers (RFMs) and customer service group (CSG) representatives, garnered interest from Fortune 50 company Lowe’s.Alacrity, which by this point had moved its main office operations to Eugene, Oregon, was, at the time, a small power player dealing with much larger companies. A partnership with Lowe’s had many advantages. With the Lowe’s name recognition, Alacrity could enjoy opportunities to expand and to bring new clients to its contractor network participants which they might not get otherwise.The partnership flourished, and, in 2013, Alacrity joined the Lowe’s family of companies, which in Q3 2016 reported $2.4 billion in net earnings. Lowe’s was drawn by Alacrity’s long-standing presence in the restoration service industry and its strong relationships with insurance carriers, said Mike Tummillo, SVP of Pro Sales. “The property-restoration market is a large and relevant segment of the broader home-improvement market, and Alacrity Services provides Lowe’s the opportunity to increase our presence in this space by serving contractors and homeowners in times of need.” Along the way, the parent company added another touchpoint to the service process by funding the restoration service specialist (RSS) position. The territory-based representative acts as a point of contact for the contractors to access product and materials. The Alacrity-Lowe’s relationship works due to their shared values of being service-oriented. Consider Alacrity’s work on property preservation for the likes of Wells Fargo. Wells has a network of bank-owned properties around the country, Alacrity has a network of independent professional contractors around the country, and Lowe’s has roughly 1,800 retail centers across North America. “When Wells wants to get a property off its REO rolls, Alacrity supplies local contractors to identify the repairs needed and the contractors can buy supplies at a nearby Lowe’s at a discount.Alacrity has been able to maintain its point of pride: being a true partner to each of its B2B clients. As Hemmer describes it, “We try to understand their business and make adjustments to our platform to meet their needs, and more on a collaborative/consultative basis than one size fits all.”In June 2016, Alacrity opened a new office in Charlotte, North Carolina, to gain an East Coast presence and to be nearer to the Mooresville, North Carolina, Lowe’s headquarters. “The past year has felt more like being at a technology company,” said Jason Kendall, Director of New Program Development. “We are moving so fast and iterating so quickly and adding new customers and developing new programs,” he explained. “It’s just a much faster pace.” At the same time, he said, employees enjoy the latitude to go and solve problems or meet customer needs. “We can move quickly and get things done and develop an answer in a week as opposed to a month.” Finding New Business OpportunitiesWith a long-range plan to realize significant growth in the next three to five years, Alacrity today aims to become a more full-service company. “It hasn’t been our history,” Kendall said. But customers, competition, and Lowe’s are pulling Alacrity in that direction. The drop in foreclosures is another reason to diversify, Hemmer noted. According to RealtyTrac, the first half of 2016 foreclosure filings saw an 11 percent decrease from the first half of 2015 and a 20 percent drop off from the second half of 2015. “It’s forced us a little bit to think about how we position our business differently as the B2B relationships that we have may not be turning out the number of jobs that they would in years past,” Hemmer said.So while retaining a reliable contractor network remains crucial to the core business, Alacrity must also size up trends in pricing and fee structures and incentivizing contractors, and it must determine what technologies have the possibility to improve or disrupt the company’s model—all this while identifying promising markets where Alacrity’s contractor network model will work well. Considering market size, understanding of the competitive landscape, and opportunities to drive additional revenue back to Lowe’s, Alacrity is actively pursuing new relationships.The challenge, though, is making that first leap into a new market area, said Kendall. “You almost have to have a partner company that wants to develop with you . . . We can’t snap our fingers and have a roofing network or a flooring network across the nation.”Alacrity also aims to move into new markets adeptly. After all, Hemmer admits, the company did enter and decide to exit new spaces recently. For example, a move into the flooring warranty space turned out not to be a good fit. “We were being somewhat successful and we were managing it OK, but it really wasn’t our sweet spot.” Thus, while there is a need to diversify and grow, Alacrity has learned to move a little slower and take a deeper look at how a market will really play out.Nevertheless, the primary mission remains the same. As Kendall puts it, Alacrity’s team is always looking to “be a better partner to our customer.”Alacrity focuses on this better partnership by recognizing everyone in the restoration and claim process is important. In the insurance space, although the carriers sending Alacrity the jobs are technically the clients, the satisfaction of the carriers’ policyholders and of the network contractors are priorities paramount to optimizing Alacrity’s programs.Meeting Customer Demand Now TooFurther embracing the challenge of leaping into new market areas, Alacrity has recently launched Resolve® powered by Lowe’s. The direct-to-homeowner program offers the company a new potential market. “It really, for the first time, gives us the opportunity to reach out directly to people who need our services who previously weren’t able to access them because maybe we didn’t have a relationship with their insurance carrier or their bank,” Miko said.Describing the response to the program, which launched in September 2016, as “strong,” Miko says certain aspects of the process are still in the testing phase. “We’re trying to have very controlled growth with Resolve so that we can determine how the market responds to it.”Under the Lowe’s umbrella, the Resolve program pairs Alacrity’s project management and restoration expertise with Lowe’s customers. With Resolve, the homeowner can become more involved in the restoration and claim process and help drive the conversation—that is, if they want to. The program also provides the personalized support of a dedicated project specialist, giving homeowners new peace of mind.Within the platform, consumers can track deadlines, ask questions, and get answers from the contractors or insurance companies. They can also access Lowe’s materials and products and create Pinterest-like pages of favorite products to illustrate their preferences to the project contractors.Resolve has also proven attractive to real estate investors who can now monitor and manage many property restorations. Being able to select standardized finishes and products, even when there are different contractors, is a boon for those with multiple properties. “We can help a potential investor create more value more quickly by having this offering,” Kendall said. With the project specialist on board tracking the project management side, investors are freed up to focus on oher aspects of their property goals.Lowe’s focuses on helping customers, something Alacrity values as well. Kendall recently saw the impact of this firsthand when two different Lowe’s executives suffered water damage at their Charlotte metro area residences. Going to the project sites to review home losses made the customer’s journey much more important in Kendall’s mind. “You can see the angst with the lack of familiarity with the process, and you can also see their tension get relieved when you explain: ‘This happens every day all day, even if you don’t even know it, and we’re going to get you through this.’”With Expedience and Good SpiritsAlacrity’s competitors range from other contractor networks to standalone contractors to home services websites. Still, more than 17 years’ experience and history in the home repair and restoration industry has helped Alacrity build a robust, reliable contractor network for its Direct Repair Program and Resolve powered by Lowe’s program. The company also seeks to differentiate by embracing a competitive model that also cares. Hemmer says the familiar business maxim “time is money” is transformed at Alacrity. Team members need to deliver the best product they can as quickly as they can, but they do so with an awareness of the very human anxieties tied to each project. “There’s always another side to the story, and understanding the homeowner’s side of the story will help you to want to move and act more quickly.”      This attitude motivates unselfishness at Alacrity, Miko said. “People are willing to do what it takes to get the job done… You never hear the phrase ‘that’s not my job.’”Hemmer, who has been with Alacrity from the outset, sees this mentality resulting from the original family-oriented business mentality, sustained through significant and rapid growth, and the return to the company’s start-up roots. “I’m getting the best of both worlds,” Miko said. “We’re embarking on Alacrity’s Launch 2.0. We are a substantial and stable and mature business. But it’s how do we then take that business model and rapidly grow it? That makes the opportunity very fun to think about as we go forward.” in Daily Dose, Featured, Magazine, Market Studies, News, Print Features 2017-03-24 Seth Welborn Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago About Author: Jenn Q. Goddu Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Subscribe Previous: First American Executive Awarded as ‘Valuation Visionary’ Next: The Week Ahead: Home Prices May Still Move Upward  Print This Post Sign up for DS News Daily March 24, 2017 3,942 Views Worthy of its Name Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

A Decade of Change in the Mortgage Industry

first_img Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago A Decade of Change in the Mortgage Industry  Print This Post Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Share Save September 21, 2017 2,706 Views About Author: Jason Allnutt The Best Markets For Residential Property Investors 2 days ago Tagged with: Foreclosure REO Data Provider Black Knight to Acquire Top of Mind 2 days ago Foreclosure REO 2017-09-21 Jason Allnutt Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Editor’s Note: This feature first appeared in the September issue of DS News, available now. In the 10 years since Auction.com launched as a brand, a lot has changed in our industry. Both traditional REO and foreclosure sales have made a paradigm shift in the way transactions are handled. Ten years ago, real estate auctions were once almost exclusively held on courthouse steps. Today, the servicing industry has embraced the online marketplace when it comes to management of asset disposition—a shift that has been exciting to be a part of.A decade of experience provides a great deal of perspective on how the industry changes as consumer attitudes shift and how the best companies in our space navigate the growing recovery. Reflecting on the last 10 years, it’s astonishing to see the tremendous strides made in virtually all aspects of our collective businesses. A Time to EvolveIn the decade since the financial downturn, the home finance industry has benefitted from numerous innovations, all designed to help financial institutions better respond to the driving forces of changing consumer needs and demographics, new regulatory and investor requirements, a changing economy, and a new generation of homebuyers.Many of these innovations were either the result of or enabled by the widespread availability of global online networks that connected not only business partners, including mortgage originators and investors but also the industry to consumers. As early as the turn of this century, consumers were turning first to the internet to search mortgage interest rates before reaching out to a lender, which they did primarily offline.Ten years ago, we saw the foreclosure rate double, leading to as many as 50,000 homes placed in the distressed disposition process. During this time, the courthouse served as the epicenter for all real estate auction sales, and buyers and sellers performed their due diligence using a variety of sources that proved to be time intensive and inadequate. While the strategy to purchase and sell real estate remained strong, the experience lacked the ease of use needed to expedite disposition timelines and welcome new entrants looking to buy property during auctions. It was time to evolve. The market needed a place to serve as a hub for information and one that could facilitate REO sales much faster and more efficient than before. By leveraging the internet, the online marketplace came to fill this need. The online marketplace idea itself resembled consumer-facing retail auction sites. However, unlike those sites, in auctioning real estate, these online platforms had to incorporate a new level of compliance, transparency, and ease of use. With the proper technology in place, there was no better time to provide an innovative way to bring new life into the auction process, while making the experience better for all parties involved.Improving for Buyers—And SellersIt is this same online technology that held the key to a better outcome for sellers of distressed properties. Without easy access to buyers, sellers were forced to spend more money and take more time to dispose of their assets. The internet made it possible to more easily reach a massive population of buyers who were already knowledgeable about the advantages of buying distressed real estate.Since selling bank-owned real estate is a subtly different transaction than transferring property from one consumer to another, web-based technology to facilitate these deals needed to differ from the traditional multilisting system (MLS) or consumer-facing real estate search websites by offering all of the search capabilities of these sites, along with offering insights from buyers, sellers, and credible third-party sources as well.The online auction marketplace gave buyers access to more properties with more information, enabling them to know what properties were worth sooner and what borrowers were able to likely do to cure default. When it became certain that a property would go into foreclosure, servicers began to seek the best online marketplace to dispose of those properties. They understood this was the optimal method to reduce the disposition timeline and risks. The online auction platform made it possible to servicers to reduce their overall default servicing costs and for investors to market foreclosed properties to many more prospective bidders than they could ever attract to a live auction.This was also good for buyers as it enabled them to purchase properties confidently with greater levels of transparency and it gave them the ability to search properties in all 50 states. Online buyers could invest in the properties, fix them up themselves, and flip them for a profit or rent them out.This has led to an entire market segment for whom “The American Dream” isn’t just to own a home but to own a portfolio of revenue-generating real estate assets.Relentless, Innovative, Forward-ThinkingAs the saying goes, “iron sharpens iron.” Successful organizations share three qualities that propel them forward: they are relentless, innovative, and forward-thinking, and I believe there is value in examining how this impacted their business.Relentless companies doggedly pursue the most optimal solution for the people they serve, whether they are consumers, investors, lenders, or servicers. In our case, it was about serving both sellers and buyers, which translates to extreme customer-centricity, deeper data insights, and a bias for action. Every organization we have seen survive—and thrive—through the last 10 years was relentless in pursuing its mission of serving its customers.Innovative companies are committed to providing customers with new opportunities and clear strategies to maximize their success. In our case, it was about providing new tools and resources that would help our customers achieve their real estate goals. For others, it meant developing new technologies and creating new business processes to allow industry participants to do more with less, faster, and in full compliance. Those that succeed change the way they operate, right down to the way they think and act.Ten years ago, buyers and sellers of real estate possessed the understanding of the strategy behind purchasing property during auction but lacked the tools to do so in the most efficient way. This created an opportunity for the industry to better prepare buyers and sellers for auction sales by leveraging the platform to provide detailed information around the asset and facilitate real-time communication prior to the auction. For us, it was about taking what we knew about buyers, sellers, and auctions to create an entirely new marketplace. For others, it was about finding new opportunities to serve the industry. Zero EvictionsWhile we have made great progress as an industry, there are still more than 930,000 properties in foreclosure or REO nationwide, and it is estimated that a vacant property can lead to losses of approximately $150,000 in the first year, stemming from reduced property value for its neighbors, increased crime, and higher costs for emergency services. The good news is that a strong contingent of smaller real estate investors has been growing in the online marketplace for some time. These investors are often small construction contractors or do-it-yourself consumers who enjoyed buying homes and fixing them up for sale. If the properties didn’t sell, they would rent them, but they were not as sophisticated as the institutional investors at running real estate management firms.To counter this, we began identifying some of our buyers who were interesting in buying to rent (but did not have the time or inclination to market properties for rent) to consider buying foreclosed homes and immediately renting them back to the current occupants. Assuming that most borrowers in default generally didn’t choose this outcome, they would prefer to cure the default and stay in a home they had chosen for all the benefits it would offer their families. If given the option, we believed they would choose to rent and stay in their homes. And they did.As the concept grew, banks across the country set a goal of zero evictions and began sending foreclosed properties to the online marketplace in the hopes that the new investors would rent them back to the original homeowners. It doesn’t always happen, but when it does, it’s a wonderful outcome for everyone involved and provides a simple, effective method to help combat blight in communities nationwide.The Next 10Over the past decade, our online marketplace has helped sell more than 285,000 residential properties nationwide worth a cumulative $33 billion. Looking back over the last 10 years reminds us of what we have accomplished as an industry. The innovative technology along with the numerous lessons learned have created an environment rich with new ideas and processes to best serve our buyers and sellers.  Looking forward, it’s hard not to be optimistic. With an improving economy, consumer hope is high, and consumers are ready to move forward in confidence. It’s difficult to imagine all the challenges that may still lie before us, but they are out there. Those that have withstood the past 10 years have learned the value of being relentless, innovative, and opportunistic and that, as much as anything else, gives me great hope for the future of our business. Related Articles in Daily Dose, Featured, Foreclosure, Headlines, Print Features, REO Previous: The Industry Recognizes Its Best: Five Star Women in Housing Next: National Foreclosure Rate Remains Stagnant Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / A Decade of Change in the Mortgage Industry Sign up for DS News Daily last_img read more

DS5: Challenges Ahead for Foreclosure Attorneys

first_imgSign up for DS News Daily Tagged with: DS5 Foreclosure Moratorium Marissa Yaker DS5 Foreclosure Moratorium Marissa Yaker 2020-08-03 David Wharton Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: David Wharton in Daily Dose, Featured, Foreclosure, Journal, Media, News, Webcasts Home / Daily Dose / DS5: Challenges Ahead for Foreclosure Attorneys The Best Markets For Residential Property Investors 2 days ago  Print This Post DS5: Challenges Ahead for Foreclosure Attorneyscenter_img For this week’s episode of DS5: Inside the Industry, we spoke with Marissa Yaker, Managing Foreclosure Attorney for Padgett Law Group. She discusses how foreclosure practices are preparing for the eventual aftermath of foreclosure moratoriums, as well as how the industry can work together to ensure compliance and efficiency.Padgett Law Group is a full-service creditors’ rights law firm operating in Florida, Georgia, Tennessee, Arkansas, Texas, and Ohio. There, Yaker oversees foreclosure processing and operations across seven physical locations within the firm’s footprint. Yaker’s practice is primarily focused on creditor’s rights and foreclosure, an area of law that she has practiced for five years. In January 2020, she was recognized by DS News as one of the Top 25 Women in Law.Here’s our exclusive interview with Yaker. Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Previous: Single-Family Rental: Opportunity for Sale? Next: Update: Mortgage Delinquency Trends Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago August 3, 2020 2,070 Views The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected]. Subscribelast_img read more

4,301 Donegal students to sit Junior and Leaving Cert exams

first_img WhatsApp WhatsApp Previous articleMore funding is needed for childcare facilities in Donegal – Deputy McConalogueNext articleJohn McAreavey breaks down in tears while giving evidence in Mauritius News Highland Dail to vote later on extending emergency Covid powers Google+ Man arrested in Derry on suspicion of drugs and criminal property offences released Google+ 4,301 Donegal students to sit Junior and Leaving Cert exams Twitter Twitter Pinterest 4,301 Donegal students will sit the Junior and Leaving Cert examinations this year, with more females than males sitting the Leaving Cert, but more males than females sitting the Junior Cert.The vast majority of the students will sit the exams in one of the 28 second level schools in the county.A total of 2,073 students are starting the Leaving Certificate exams in Donegal this morning, 1,052 female and 1,021 male. The vast majority of them are secondary school students, but a number are mature students who have studied through Donegal VEC’s Adult Education programme.106 students are sitting the Leaving Cert Applied, with males outnumbering females by 103 to 73.2,228 students are sitting the Junior Certificate exams in the county, 1,071 of them female and 1,157 male.center_img PSNI and Gardai urged to investigate Adams’ claims he sheltered on-the-run suspect in Donegal Dail hears questions over design, funding and operation of Mica redress scheme By News Highland – June 6, 2012 Facebook Pinterest News Facebook Man arrested on suspicion of drugs and criminal property offences in Derry RELATED ARTICLESMORE FROM AUTHOR HSE warns of ‘widespread cancellations’ of appointments next week last_img read more

IFA President calls on farmers to lobby TD’s on REPS scheme

first_img Facebook Man arrested in Derry on suspicion of drugs and criminal property offences released News PSNI and Gardai urged to investigate Adams’ claims he sheltered on-the-run suspect in Donegal Google+ Facebook Pinterest WhatsApp The IFA President John Bryan is urging Donegal farmers to put pressure on government TDs to ensure a proper replacement is provided for the REPS scheme.Speaking during his first official visit to the county last night, John Bryan told the Donegal IFA AGM that money was set aside in last year’s budget, but the department seems to be rowing back on the promises that were made,.He says this must not be allowed happen:[podcast]http://www.highlandradio.com/wp-content/uploads/2010/03/01bryan830.mp3[/podcast] By News Highland – March 23, 2010 Twitter Dail hears questions over design, funding and operation of Mica redress scheme center_img IFA President calls on farmers to lobby TD’s on REPS scheme RELATED ARTICLESMORE FROM AUTHOR Twitter Google+ Pinterest Man arrested on suspicion of drugs and criminal property offences in Derry Dail to vote later on extending emergency Covid powers HSE warns of ‘widespread cancellations’ of appointments next week WhatsApp Previous articleReport highlights importance of regional airports to tourismNext articleCouncillor fears HSE are to close Lifford Hospital News Highland last_img read more