DS News

4 58 70 14 This Month FROM OUR DESK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 DS JOURNAL Why Are Consumer Default Rates Rising?; A Blueprint for Reform; When Income Levels Fall Short of Homeownership Goals; Reaching a New Low; CFPB Requests Expansion of MLA Surveillance; Spotlight on Single-Family Rentals; Homeownership: rough the Eyes of Black America; A Closer Look at TRID; Debt-to-Income and Delinquencies; What Castro's Presidential Bid Means for Housing; Rep. Maxine Waters Sets the Agenda; Affordability Concerns Persist; Real Estate Outlook; Developments in Bankruptcy and Title Practices; Reimagining Asset Distribution in Chapter 7 Bankruptcies MOVERS AND SHAKERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 FIVE MINUTES WITH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 ASK THE ECONOMIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 STATE OF AFFAIRS Impactful local market information at your fingertips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 INDUSTRY INSIGHT LEANING INTO TAX LIEN INVESTING is "investment secret" has been edging closer to the mainstream among real estate investors, but it remains a confusing and often intimidating strategy.. . . . . . . . . . . . . . . . . . 54 By Charles Sells INDUSTRY INSIGHT ARTIFICIAL INTELLIGENCE, REAL-WORLD RESULTS Emerging capabilities in artificial intelligence and machine learning have the potential to transform default property servicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 By Tomasz Serafinski INDUSTRY INSIGHT A CHANGE IN THE ECOSYSTEM How can emergent technologies such as AI alter the course of the mortgage landscape from origination to servicing?. . . . . . . . . . . . . . . 62 By Terrell Cassada INDUSTRY INSIGHT INVESTING IN THE ZONE Opportunity zones offer real estate investors strong incentives to invest in designated low- income census tracts. Here's why these zones could be the next big thing. . . . . . . . . . . . . . . . . . . 66 By Charles Tassell INDUSTRY INSIGHT FOLLOWING FINTECH INTO THE FUTURE Where are the big banks putting their fintech investment dollars? Regional institutions can follow their lead and find a pathway leading straight into the future.. 70 By Scott Dai Contributors MOLLY BOESEL is a Principal Economist for CoreLogic in the Office of the Chief Economist and is responsible for analyzing and forecasting housing and mortgage market trends. TERRELL CASSADA, CIO at LoanLogics, is responsible for document, data, and rules pro- cessing software development and technologies; corporate infrastructure, data center infrastruc- ture, and operations; and corporate information and data security. Prior to joining LoanLogics, Cassada provided management consulting services to the GSEs on FHFA-mandated technology, operational and budgeting initia- tives, and to regional and community banks on technology, operational, and information security best practices and efficiencies. SCOTT DAI leads EY FinTech in the South- west with over 18 years' financial services industry experience from strategy to opera- tional execution, disruptive capabilities, and technology transformation for top U.S. and global financial services firms. Responsibilities involve resolving complex, enterprise-level issues to designing for the future through delivering with large teams across disciplines. Other passions and responsibilities include talent evaluation and acquisition, opera- tionalizing digital, fintech, and automation capabilities. CHARLES SELLS is the founder of e PIP Group, a highly successful turn-key service provider that focuses on investments in distressed real estate assets including tax liens, tax deeds, traditional foreclosures, fix/flips, and long-term cash flow acquisitions. Sells has transformed e PIP Group from just $4,000, one man, and four potential investors into one of the largest agencies of its kind with more than 700 investors worldwide. TOMASZ SERAFINSKI is Head of the AI/ ML business unit at Aspen Grove Solutions, where he drives innovation and, specifically, the application of AI/ML technologies within the Aspen Property Servicing Platform. Serafinski is key to Aspen's drive to bring visionary and transformational technologies to the mortgage servicing industry. CHARLES TASSELL is the COO for the Na- tional Real Estate Investors Association and has been working in real estate policy for more than 20 years. He is an investor in commercial multi-family units and a local elected official. He resides in Deer Park, Ohio, with his wife and three children. DAVID WHARTON, Online Editor at the Five Star Institute, has over 15 years' experience in journalism, with an extensive and diversified portfolio of published contributions both online and in print. He previously worked at omson Reuters, focusing on producing media content related to tax and accounting principles and government rules and regula- tions for accounting professionals. He can be reached at David.Wharton@eFiveStar.com. Join the Conversation Do you have a suggestion, story idea, or some feedback you'd like to share with DS News readers? Help shape our next issue by emailing Editor@DSNews.com. M A R C H 2 0 1 9 C o n t e n t s D S N E W S . C O M 56 26 COVER STORY In an era of high demand, low defaults, and affordability challenges, here's why single-family rental investment has become a dominant force. By David Wharton | Page 48

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