Linking ≠ endorsement. Enjoy and share:
- Private mortgage insurers find their place | 2013-08-27 | HousingWire
[By] Christina Mlynski. August 27, 2013 11:23AM
Fewer borrowers are refinancing into Federal Housing Administration loans, allowing private mortgage insurers to pick up some of the slack.
The shift is coming at a time when insurance premiums on FHA loans continue to rise.
Consequently, private mortgage insurers accounted for 36% of insurance written in the second quarter, the highest level since 2008, the Royal Bank of Scotland (RBS) pointed out in a new research report.
"This trend is likely to continue in anticipation of new FHA legislation," explained RBS co-head of agency mortgage-backed securities strategy Sarah Hu. The legislation in question would substantially reform the FHA and how it does business.
She added, "If passed, the bill would require the FHA to establish a minimum annual mortgage insurance premium while increasing its maximum level from the current statutory limit of 1.55% to 2.05%. This rising insurance premiums could price out some Ginnie Mae borrowers in FHA refinance transactions and encourage them to refinance into conventional loans."
"FHA has raised prices and instituted policies that require many borrowers to pay MI for the life of the loan—in some cases up to 30 years," Gould [Brian Gould, Chief Operating Officer, United Guaranty] stated.
He continued, "In some scenarios, FHA's non cancellable insurance premiums could be as much as four times the cost of United Guaranty MI over the life of a borrower's loan.
"Due to FHA's recent price increases and policy changes, private MI now is less expensive than FHA coverage – upfront and over the life of the loan – for nearly all borrowers who make more than a 3.5% downpayment on a loan up to $625,000," Turner [Kenny Turner, Director of Capital Markets, Genworth U.S. Mortgage Insurance (GNW)] said.
Read the source article …
- U.S. Bank Legal Bills Exceed $100 Billion – Bloomberg
By Donal Griffin & Dakin Campbell – Aug 28, 2013 9:02 AM GMT-0700
The six biggest U.S. banks, led by JPMorgan Chase & Co. (JPM) and Bank of America Corp., have piled up $103 billion in legal costs since the financial crisis, more than all dividends paid to shareholders in the past five years.
That's the amount allotted to lawyers and litigation, as well as for settling claims about shoddy mortgages and foreclosures, according to data compiled by Bloomberg. The sum, equivalent to spending $51 million a day, is enough to erase everything the banks earned for 2012.
Five years after the financial crisis shook global markets, banks are facing accusations that they misled buyers of mortgage-backed securities, rigged interest rates used to price loans worldwide and manipulated markets for credit derivatives and commodities. …
A U.S. housing regulator is seeking at least $6 billion to settle claims JPMorgan sold bad mortgage bonds to government-backed finance companies Fannie Mae (FNMA) and Freddie Mac, a person briefed on the matter said this week. …
"There is wide political support for punitive action against these banks, and it's not going away," said Keith Davis, an analyst at Farr, Miller & Washington LLC, which manages about $930 million, including shares of JPMorgan and Goldman Sachs. …
"We now have 103 billion reasons why not doing the right thing is costly to banks," said Mark T. Williams, a Boston University lecturer and former Fed examiner specializing in risk management. …
Read the source article … http://www.bloomberg.com/news/2013-08-28 /u-s-bank-legal-bills-exceed-100-billio n.html
- Shiller: Risk of a weakening housing market | Credit Writedowns
by Edward Harrison / on 28 August 2013 at 08:18 /
Yesterday, we learned that the Case-Shiller Housing Index is up 12.1% through June. In response, Robert Shiller said "housing is a market with momentum" and he believes that the momentum is up. The numbers speak to this. See the first CNBC video below for his full commentary. Let's remember that the Case-Shiller Index is data from two months ago and is based on a trailing three-month aggregate. That means that Case-Shiller is about the housing market of April-June more than it is about the current housing market.
Diana Olick gets to some of this in the second video below because rising interest rates are having a chilling effect on the U.S. housing market. So we should expect the house price inflation numbers to decelerate somewhat.
Click through to watch the videos.
Read the source article … http://www.creditwritedowns.com/2013/08/ shiller-risk-of-a-weakening-housing-mark et.html
If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.
Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.
Did this post help you? Let us know by leaving your comment below.
Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.
Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.
We do not necessarily fact checked the contents of every linked article or page, etc.
If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.
The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?
For our part, we believe in strong regulations and strong regulators.
We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.
We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.