DS News

DS News January 2021

DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.

Issue link: http://digital.dsnews.com/i/1322815

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Page 6 of 99

5 Compiled by the DS News Staff TA K E A L O O K I N S I D E T H E N U M B E R S DATA BITS * Based on data from Nationwide's Health of Housing Markets Report I N S I D E T H E J O U R N A L | I N F O S T R E A M | T H E D I G I TA L E D G E | M O V E R S & S H A K E R S A look at facts you didn't know you couldn't live without. The number of housing units exposed to frequent flooding will triple between 2000 and 2050, according to a study by Climate Central and the National Housing Trust. A study by the Urban Institute found that Black and Brown Americans are more likely than white borrowers to have unprotected delinquencies and to experience adverse financial consequences of the pandemic. 400 SAN ANGELO, TX 399 CHEYENNE, WY 398 ODESSA, TX 397 CLARKSVILLE, TN-KY 396 BROWNSVILLE-HARLINGEN, TX 395 FORT WORTH-ARLINGTON, TX 394 KENNEWICK-RICHLAND, WA 393 STATE COLLEGE, PA 392 MANHATTAN, KS 391 SAN RAFAEL, CA BOTTOM 10 MSAS BY LOAN PERFORMANCE* 1 SAGINAW, MI 2 JOHNSTOWN, PA 3 ST. JOSEPH, MO-KS 4 TUSCALOOSA, AL 5 ALEXANDRIA, LA 6 DETROIT-DEARBORN-LIVONIA, MI 7 WHEELING, WV-OH 8 CAPE GIRARDEAU, MO-IL 9 FLINT, MI 10 ALTOONA, PA TOP 10 MSAS BY LOAN PERFORMANCE* RANK METROPOLITAN STATISTICAL AREA RANK METROPOLITAN STATISTICAL AREA HOW FORECLOSURE WAVE COULD IMPACT HOUSING SHORTAGE Foreclosure moratoria and forbearance programs eventually will come to an end, which could result in a foreclosure surge, say sources at Redfin. With a few factors at play, any such increase in foreclosures will not make much of a dent in the existing housing shortage, they add. For one thing, homeowners have more op- tions during this current crisis than, say, during the Great Recession. According to Redfin, most homeowners will be able to work out a plan to exit forbearance and keep their houses. e Redfin study showed that 3.8% of home- owners nationwide fear foreclosure whereas some 13.5 % are delinquent on mortgage payments. One Redfin agent explains why many but not all homeowners who are struggling as a result of the COVID-19 pandemic opt for forbearance plans: "In my experience selling foreclosed prop- erties, some people don't take advantage of for- bearance because they aren't educated on what it entails," said Redfin agent Gina Sapnar. "ere are people who are in forbearance who don't un- derstand how repayment works. For some people payments are tacked on to the end of the loan, but for others it may be a large payment due immediately at the end of forbearance as a lump sum, which could be very tough for people to re- pay. Some homeowners are underwater because they took on more debt than they could handle. I know of a restaurant owner who took equity out of his home to pay his workers during the pandemic. ere are people suffering who have depleted their entire life savings, are drowning in debt and they aren't paying their mortgages. But even those people have options. e lenders are really trying to work with occupants and educate them on how to avoid the scarlet letter of a foreclosure." at segment of borrowers who are over- leveraged or unaware of their options could contribute to "a wave of foreclosures," wrote Redfin economist Daryl Fairweather. She and other Redfin representatives expect investors and first-time buyers to purchase the coming crop of distressed properties. "Even if there is a wave of foreclosures, those foreclosed properties will have little impact on the overall housing market because there is a shortage of homes for saleā€”the total number of homes for sale is at a record low," Fairweather noted. "ere are investors just waiting to buy distressed properties," Sapnar added. "I have one investor constantly reaching out, they are even look- ing for off-market homes because once a distressed home hits the market it gets multiple offers." Fairweather added that due to some pro- grams meant to assist first-time homebuyers, those shoppers might also have an advantage. Fannie Mae's First Look program renovates distressed homes and offers them first to buyers who will occupy the home. "e First Look program is great for first- time homebuyers who don't want to compete with investors," continued Sapnar. PAGE 68 Special Section Recognizing Excellence Among Female Legal Minds Journal Women of Law

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