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» VISIT US ONLINE @ DSNEWS.COM 15 DELAYING THE DREAM OF HOMEOWNERSHIP Even as they get set to surpass baby boomers as the nation's largest generation, millennials are delaying many of the traditional markers of adulthood, which includes buying a home, according to a study by Apartmentlist.com. e study indicated that despite recent increases, the rate of homeownership among millennials still lags the previous generations at a similar age due to macroeconomic trends that are making it difficult for this generation to take the plunge and buy their own abode. For the study, Apartmentlist surveyed 6,400 millennial renters on their plans for homeownership or buying a condo. It found that while the majority of respondents said that they would like to purchase a home at some point in the future, the number of millennials who were prepared to do so in the near term were "far fewer." One of the biggest factors in this delay, the study found, was down payment. Forty- eight percent of the respondents surveyed for the study said that they had nothing saved for the down payment. Looking at the future, the study projected that two-thirds of this population would require more than two decades to save a 20 percent down payment based on their current savings rates. "Just 11.1 percent of millennials have saved more than $10,000 for a down payment, while an astounding 48 percent have saved nothing at all," the study said. e survey for this study had also asked respondents about their ongoing savings rate and found that 43.3 percent were "putting none of their monthly income towards down payment savings." e larger question, that many millennials were not prepared for was whether the down payment they were saving up for, would be enough, according to the study. It revealed that millennials were likely to need a larger down payment than they thought. Giving the example of San Francisco, which is also "the nation's priciest market," the study said that average survey respondents said they would need approximately $99,300 for a down payment to buy in this area. However, the study revealed that an actual down payment of 20 percent here was estimated at $175,180. "We see this trend even in more affordable markets. In Phoenix, for example, a 20 percent down payment on the median-priced condo amounts to $33,400, but our survey respondents in the area expect to need $17,610, on average," the study said. FANNIE MAE & FREDDIE MAC REPORT ON NPLS e Federal Housing Finance Agency's (FHFA) semiannual report found that Fannie Mae and Freddie Mac (the Enterprises) sold 98,061 nonperforming loans (NPL) with a total unpaid principal balance (UPB) of $18.7 billion through June 30, 2018. e report comprises information about NPLs sold from August 1, 2014, through June 30, 2018, reflecting the borrower outcomes as of June 30. e sale of NPLs decreases the number of delinquent loans in the Enterprises' portfolios and transfers credit risk to the private sector. e report noted that NPL loans are more favorable to buyers on account of the requirements imposed on NPL buyers by both the FHFA and the Enterprises. e report revealed that 7,140 NPLs were sold in the first half of this year, compared to 18,419 total NPLs in 2017. e average delinquency of 3.1 years and an average current loan-to-value ratio of 95 percent was reflected in the NPLs sold through the first half of 2018, excluding capitalized averages. New Jersey, New York, and Florida accounted for 47 percent of the Enterprises' loans that were one year or more delinquent as of December 31, 2014. ese three states also accounted for 46 percent of NPLs sold. e number of loans one or more years delinquent in the Enterprises' portfolio saw a decline between December 31, 2015, to June 30, 2018. Borrower outcomes as of June 30, 2018, based on the 88,200 NPLs, that were settled by December 31, 2017, reflected that 62 percent of these NPLs were resolved by June 30, 2018. Compared to similarly-delinquent Enterprise NPLs not sold, foreclosures avoided for sold NPLs were higher than the benchmark. e highest rate of foreclosure avoidance outcomes (28.2 percent foreclosure avoided versus 12.7 percent for vacant properties) was recorded in NPLs on homes occupied by borrowers. An increase in the rate of foreclosure was recorded in NPLs on vacant homes—65.9 percent foreclosure versus 28.6 percent for borrower-occupied properties. e report indicated that neighborhood stability improves with foreclosures on vacant homes. Twenty percent of the permanent modifications of NPLs incorporated arrearage and/or principal forgiveness. NPLs have the potential to an average forgiveness of $77,491, the report said. e current average forgiveness earned per loan to date was $55,280. is the forecasted decline in delinquencies by the end of 2019, compared to 1.62 percent in 2018. Source: TransUnion's 2019 Consumer Credit Report STAT INSIGHT 1.4%

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