Category Archives: Lending

Factom releases new solutions that leverage blockchain technology

 

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Factom, a blockchain-as-a-service (BaaS) technology company, released a new suite of products designed to work with existing imaging or document management solutions to create a secure, transparent and unalterable record for final loan documents.

Built within the company’s mortgage-based solution, Factom Harmony, this new suite of products includes Audit Room, Due Diligence Room and Servicing Room. Factom’s new document management technology works as a simple extension of existing imaging technology.

The Harmony mortgage suite of products utilizes the blockchain based DigitalVault to create unique solutions for regulatory compliance, quality control, due diligence, and servicing audits and compliance.

Audit Room is designed to support compliance evidence, quality control functions and allow internal and third parties to audit files, facilitate origination, and support post-closing reviews based upon the immutability of blockchain technology.

The new Due Diligence Room is designed for loan sales, securitization, and non-performing loan trading. It builds upon the power of blockchain technology to create a perfected chain of credit, collateral and compliance review data and documents.

The new Servicing Room solution creates a unique and unalterable record of borrower communications, documentation, and data. Designed for both current and delinquent loans, the Servicing Room creates an indisputable and permanent record of all servicing events with a public witness via the Factom blockchain.

“The Servicing Room significantly reduces servicing costs by creating provable evidence of compliance. It also reduces the preparation time and risks of audits, servicing transfers, and foreclosure processes,” said Tiana Laurence, co-founder and CMO of Factom.

Factom is headquartered in Austin, Texas, with supporting offices all over the world, including Sunnyvale, California, Shanghai and Beijing, China, and London. 

For more information, visit factom.com.  

Article source: http://www.housingwire.com/articles/39673-factom-releases-new-solutions-that-leverage-blockchain-technology

Value of housing market hits 10-year high

The value of the housing market hit a 10-year high in 2016 as equity reached new levels, according to the Urban Institute’s latest report.

Home prices for existing single-family homes came screeching to a halt in January, the Federal Housing Finance Agency’s report showed. And a new release from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development shows the median home prices for new home sales dropped in February.

Despite this, home prices remain high historically and the housing market is valued higher than it has been in years.

The Federal Reserve’s Flow of Funds report has consistently indicated an increasing total value of the housing market driven by growing household equity since 2012, and 2016 was no different.

Total debt and mortgages held steady at $10.3 trillion, but household equity reached a new high of $14 trillion. The total value of the housing market increased to $24.3 trillion, surpassing even the pre-crisis peak of $23.9 trillion in 2006.

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(Source: Federal Reserve Flow of Funds, Urban Institute)

Within the U.S. residential mortgage market, agency mortgage-backed securities make up 59.2% of the total mortgage market, private-label securities make up 5.1% and unsecuritized first liens at the GSEs, commercial banks, savings institutions and credit unions make up 29.9%. Second liens comprise the remaining 5.8% of the total.

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(Source: Federal Reserve Flow of Funds, Urban Institute)

Article source: http://www.housingwire.com/articles/39669-value-of-housing-market-hits-10-year-high

OCC: Charts prove borrowers keep getting better at paying their mortgage

Keeping up with the rest of the year, the Office of the Comptroller of the Currency’s latest quarterly report on mortgages showed that borrowers are continuing to get better at paying their mortgages.

The overall performance of first-lien mortgages continued to improve, while the number of loans in delinquency continued to decline, according to the OCC’s fourth quarter 2016 report.

The OCC collects data on first-lien residential mortgage loans serviced by seven national banks with large mortgage-servicing portfolios. The seven national banks include: Bank of AmericaCitibankHSBCJPMorgan ChasePNCU.S. Bank and Wells Fargo. However, data through the fourth quarter of 2015 includes CIT/OneWest.

The report falls in line with previous reports that showed the overall performance of mortgages improving from the previous year.

As of Dec. 31, 2016, the reporting banks serviced approximately 19.8 million first-lien mortgage loans with $3.45 trillion in unpaid principal balances, making up 35% of all residential mortgage debt outstanding in the United States.

The chart below displays the outstanding principal balance of reported loans and shows the declining amount of unpaid balance from the fourth quarter of 2014 through the fourth quarter of 2016.

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OCC

(Source: OCC)

Of the loans serviced by the seven largest banks, the overall performance of mortgages improved from a year earlier. The percentage of mortgages that were current and performing at the end of the fourth quarter of 2016 increased to 94.7%, compared with 94.1% a year earlier.

The chart below provides the quarterly percentage of mortgages in each category of delinquency.

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OCC

(Source: OCC)

Servicers also initiated less foreclosure actions. The OCC noted that foreclosure actions progress to sale of the property only if servicers and borrowers cannot arrange a permanent loss mitigation action, modification, home sale, or alternate workout solution.

Servicers initiated 45,495 new foreclosures in the fourth quarter of 2016, falling 5.1% from the previous quarter and 28.2% from a year earlier.

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OCC

(Source: OCC)

Lastly, home forfeiture actions during the quarter— completed foreclosure sales, short sales, and deed-in-lieu-of-foreclosure actions—dropped 32.3% from last year, to 25,818.

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OCC

(Source: OCC)

As mentioned in previous reports, it’s important to note that the servicing share that the seven banks hold is dropping.

Article source: http://www.housingwire.com/articles/39672-occ-charts-prove-borrowers-keep-getting-better-at-paying-their-mortgage

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