DS News - Digital Archives

THE APP SPECTRUM TECHNOLOGY ON-THE-GO FITCH ANTICIPATES CONTINUED GROWTH FOR HOUSING INTO 2014 Five Star Conference App Available for: The official app of the Five Star Conference and Expo, this free, highly intuitive digital resource allows attendees to get the most out of their Five Star experience on-the-go. From your phone or tablet, view, build, and edit your schedule; set alerts; discover upcoming events; learn more about the speakers; navigate maps of the Expo Hall and conference layout; rate academic sessions; stay connected through social media, and so much more! GateGuru Available for: This app provides real-time flight status with push notifications and important information for more than 204 airports across the United States, Canada, Europe, Asia, and Australia. The free version includes security wait times, terminal photos, food choices, shops, services, and other amenities. A winner of multiple "best app" awards for its travel and airport utility, GateGuru offers more than 35,000 reviews and tips from fellow travelers to help you manage your travel itinerary while on the fly. Concur Available for: Easily organize and track your business travel expenses and submit reports for reimbursement instantaneously. You can also book and manage your flight, hotel, and dining itineraries, and if the Concur system is used company-wide, instantly and remotely obtain approval from managers for unexpected trip costs. Free 30-day subscription to try, and then $8 per month for the Concur service. Also integrates with TripIt for Business for free. 18 In the backdrop of a slow growing economy, Fitch Ratings projects the housing recovery will expand this year and the next, just not at an "explosive" pace. The ratings agency's forecast for 2013 is for existing-home sales to increase 7.5 percent and new home sales to rise by 22 percent. In 2014, the improvements should continue but at a slower rate for existing-home sales, with the annual increase moderating to 5 percent. New home sales, however, are expected to stay on course with a 24 percent increase. Fitch notes that the market faces challenges such as negative equity, strict mortgage qualification standards, lot shortages, materials and labor costs pressuring home prices, and excess supply in certain markets due to foreclosures. In the midst of the challenges, however, Fitch pointed to factors supporting the market's recovery, such as "stillattractive" home prices and low mortgage rates. While the recent surge in rates is not expected to halt the recovery, Fitch warned that if rates were to make another leap from current levels or if credit terms became more constrained, its forecast for this year would become more pessimistic. The agency's report also stated, "[A] fragile economy slipping into recession could inflame issues, such as negative buyer psychology and home price erosion relatively quickly, which can lead to a falloff in demand and bloated inventories." Interestingly, Fitch speculates banks could be in control of a "sizeable amount of housing inventory" based on data from the National Association of Realtors, which showed only 15 to 20 percent of foreclosures hit the market during the downturn in 2008 and 2009. This leaves the remaining 80 to 85 percent as bank-owned properties. Fitch says banks currently offer "top dollar" at auctions to keep their distressed properties, "frequently paying above assessed value." The rating agency stated banks would rather hold distressed properties since they're expecting values to appreciate in the next couple of years than sell them off now and suffer losses. In a separate study, Fitch found the rate of performing borrowers who rolled into delinquency status decreased in the second quarter. New delinquency roll rates showed stronger performance across all categories (subprime, Alt-A, and prime), with non-agency roll rates hitting their lowest level since early 2007. Overall, Fitch's delinquency roll rate index fell to 2 percent. The agency credited the improvement in Q2 to borrowers receiving tax refunds, among other industry and market factors. "The improved roll rates are driven most notably by home price increases, steady job growth, and positive selection among borrowers remaining in the mortgage pools," said Sean Nelson, director at Fitch. "One area of concern remains prime mortgage loans originated before 2005, which continue to struggle due to concentrations of adversely selected borrowers." Fitch expects the improvements to continue, noting new delinquency roll rates have improved year-over-year since 2010. Additionally, Fitch reported outstanding loans more than 60 days or more past due improved across all sectors in the residential mortgage backed securities (RMBS) space. Although Fitch noted concerns for pre2005 vintages, the prime delinquency rate for 2010 loans are at or near zero, while 2005 to 2007 vintages are improving. Fitch also found foreclosure liquidation timelines have lengthened with short sales used less frequently to handle non-performing loans. According to the firm's report, short sale liquidation timelines tend to be about 12 months shorter than REO timelines. While short sales were still the most commonly used tool for non-performing loans in Q2, accounting for over half of all resolutions, Fitch noted that as a percentage of all resolutions, short sales actually decreased in the second quarter. The extension in liquidation timelines is also a reflection of "increased procedural challenges servicers face due to regulatory changes," as well as "some adverse selection of properties not resolved through short sales," Fitch said.

• Cover