DS News - Digital Archives

» Study: Renting Makes More Sense than Buying in Manhattan New York Custom Loss Mitigation Services Michael J. Wallace 516.319.1600 mjwallace@wallacerealestatesolutions.com WallaceRealEstateSolutions.com IN THE NEWS Solidifi and Kirchmeyer Unite to Create Appraisal Superfirm Solidifi and Kirchmeyer & Associates, two of the top independent real estate appraisal firms in the industry, are combining forces to create a super company, one that will make Solidifi the third largest independent provider of residential real estate in the country. The New York based company services more than 50 percent of the nation's lenders. Solidifi uses technology to build efficiency throughout its appraisal process, thereby increasing quality, driving out costs, and improving the client experience. The company compensates the appraisers well and provides accurate information to the lenders because of its efficient system. "Following a $22 million financing in 2012, Solidifi is in growth mode and Kirchmeyer is an important part of our overall growth strategy. It is the ideal fit for Solidifi," said Jason Smith, Solidifi's president and CEO, in a statement. Kirchmeyer and Solidifi are a match in quality of work, as well as in culture of companies. Going forward, the combined entity will operate under the Solidifi name. Historically, Solidifi has invested more than $25 million to its technology platform, which will be a boon to Kirchmeyer customers. "Solidifi's technology and broad appraiser network will complement our own network, and I and my team are excited to continue to service our current and future customers with these extended capabilities," said James Kirchmeyer, CEO of Kirchmeyer & Associates, in a statement. With fluctuations in rental and owner markets over the past few years, it can be difficult to determine whether one is better off renting or owning. In Manhattan, renting is currently the more financially viable option, according to a new study by the Federal Reserve Bank of New York. The article compares a home's market prices with the annual market rent the same home would bring in. Higher ratios imply homes are overvalued, while lower ratios suggest homes are undervalued. Today's ratios are relatively high. The study determined apartment prices have risen "substantially" for the past 17 years and are now more than twice what they were in the mid-1990s. Purchase prices would need to appreciate by at least 4 percent per year for today's prices to be reasonable, according to the study. Jason Bram, senior economist for the New York Fed and author of the article, points out rents in the mid-1990s were not historic norms, but rather they were "unusually low," meaning today's prices may not be as inflated as they appear. "Still, current rent levels, mortgage rates, and property tax rates make it difficult to account for the high prices of Manhattan co-ops and condominiums in 2011 without assuming an expected future price appreciation of at least 4 percent per year," the study notes. While the report's data extends through 2011, the author also points out 2012 data includes rising rents and relatively stable prices, implying "people may have tempered their expectations for price appreciation." Groups Gather to Assist New York Homeowners Impacted by Sandy Key players gathered in Long Island recently to assist struggling homeowners affected by Hurricane Sandy. The HOPE NOW Alliance organized the event, which provided face-to-face help from mortgage servicers, nonprofit housing counseling organizations, and insurance companies, among others. HOPE NOW announced nearly 300 families showed up to receive assistance. VISIT US ONLINE @ DSNEWS.COM Examples of servicers who attended include Bank of America, Chase, Citi Mortgage, GMAC Mortgage, Homeward Residential, HSBC, Nationstar, Ocwen, OneWest, PNC, Select Portfolio Servicing, Seterus, SunTrust, US Bank, and Wells Fargo. HUD-approved, nonprofit housing counseling agencies that took part in the event included American Debt Resources, Community Development Corp. of Long Island, Long Island Housing Partnership, Long Island Housing Services, and Nassau County Office of Housing and Community Development. Insurance companies in attendance included Assurant, USAA, New York Property Insurance Underwriting Association, Travelers, Allstate, Hartford, Nationwide, New York Central Mutual, and Liberty Mutual. The GSEs also participated. "Many organizations came together, in a very short amount of time, to make this event happen," said Faith Schwartz, executive director of HOPE NOW, in a statement. "HOPE NOW is grateful to all who donated time, funding, and resources to spend nine hours on a Saturday for the sole purpose of assisting those in need," she continued. "Events such as the one … serve as a reminder that face-to-face assistance to families looking for housing solutions is what HOPE NOW and its partners do best. As we close out another year of successful events and look ahead to 2013, we remain committed to helping homeowners find viable alternatives to foreclosure." The event was co-sponsored by New York State Attorney General Eric T. Schneiderman, NeighborWorks America, Federal Reserve Bank of New York, Long Island Housing Partnership, and CDC Long Island. HOPE NOW is an industry-created alliance of mortgage servicers, investors, counselors, and other mortgage market participants. CRFS Celebrates 10th Anniversary Claims Recovery Financial Services, LLC (CRFS), a claims processing management solutions specialist, recently celebrated its 10th year in business. The company, which started out with one employee and one client and processed a few claims each month, now boasts more than 380 employees and handles thousands of claims monthly. 117

• Cover