DS News - Digital Archives

» VISIT US ONLINE @ DSNEWS.COM 7 A look at facts you didn't know you couldn't live without Compiled by the DS News Staff TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S CHIEF OF THE HOMEOWNERSHIP PRESERVATION OFFICE IN THE UNITED STATES DEPARTMENT OF THE TREASURY Dallas/Fort Worth, Texas sales of home prices at $1 million are up 53 percent from this same time last year, reports Dallas Morning News and North Texas Real Estate Information Systems. Economic activity is expected to pick up in Q2 2014, according to Fannie Mae's Economic and Strategic Research Group. REGULATOR CONCERNED OVER NATIONSTAR'S 'EXPLOSIVE GROWTH' PAGE 35 INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM **The Cost of Living Index (COLI) measures regional differences in the cost of consumer goods and services. A reading of 100 represents the national average, so a COLI value of 86 means the local cost of living is 14% below the national average. Source: The Cost of Living Index is published quarterly by the Council for Community and Economic Research. FIVE MINUTES WITH Mark McArdle MOST AFFORDABLE CITIES 1 Buffalo, NY 96.1 2 Memphis, TN 91.8 3 Cincinnati, OH 96.5 4 Dayton, OH 97.4 5 Knoxville, TN 88.9 6 Akron, OH 98.5 7 Grand Rapids, Mich. 97.6 8 Louisville, KY 92.4 9 Oklahoma City, Okla. 92.9 10 Warren, Mich. 98.7 Urban Areas COLI** Ranking MOST TAXED CITIES 1 Bridgeport,CT 22.10% 2 Milwaukee, WI 17.50% 3 Philadelphia, PA 16.90% 4 Baltimore, MD 16.50% 5 Portland, ME 15% 6 Seattle, WA 6.60% 7 Anchorage, AK 6.50% 8 Souix Fall, SD 6.30% 9 Las Vegas, NV 5.50% 10 Cheyenne, WY 4.20% Ranking Urban Areas Tax Amount Benjamin Lawsky, superintendent of the New York State Depart- ment of Financial Services (NYSDFS), issued a letter to Nationstar Mortgage Holdings, acknowledging the agency "has significant concerns that the explosive growth at Nationstar and other nonbank mortgage servicers may create capacity issues that put homeowners at risk." "We have received hundreds of complaints from New York consumers," said Lawsky in a letter initially reviewed and reported by the Wall Street Journal. e letter cites problems with Nationstar's mortgage practices, including problems related to mortgage modifications, improper fees, and lost paperwork. e NYSDFS halted a deal between Ocwen and Wells Fargo, which would have shifted mortgage servicing rights of a portfolio worth $39 billion from Wells Fargo to Ocwen. e letter is a continued effort by Lawsky to monitor nonbank servicers and their rapid ex- pansion. Lawsky is concerned rapid growth has left servicers without the sufficient infrastructure and personnel to handle the increased volume. "ere are real people at the other ends of these loans, and the ability to work with those homeowners is not something that these non- bank firms can build up overnight," Lawsky remarked at the New York Bankers Associa- tion Annual Meeting and Economic Forum on February 12, 2014. Nationstar CEO Jay Bray responded to the letter in a press release: "We intend to comply fully and transparently with Mr. Lawsky's request, just as we do when working with the dozens of state and fed- eral regulators who oversee our business and industry on a daily basis." Nationstar, Ocwen, and Walter Investment Corporation recently reported very positive fourth quarter earnings, which were in part due to refinances through the Home Affordable Refinance Program (HARP). It remains to be seen whether these earnings will continue as the shrinking avail- ability of HARP-eligible loans becomes a factor in 2014. Moody's Investors Service cited concerns that the three largest nonbank mortgage servicing companies, Ocwen, Nationstar, and Walter Investments Corp., will begin originat- ing nonprime mortgages as a way to increase already growing revenues. Moody's latest ResiLandscape report noted, "We have said that Ocwen and the special servicers could become the next generation of non-prime originators, given their wealth of non-prime servicing experience along with the cyclical, low-margin nature of prime mortgage originations." Increased scrutiny from regulators like Lawsky and dwindling HARP-eligible loans could drive the firms to other, more risky ventures. e NYSDFS and Nationstar could not be reached for comment. Capacity issue may put homeowners at risk.

• Cover