Category Archives: Nonconforming

Investors Shift to Multifamily Properties as Market Recovers

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Real estate investors are shifting their purchases to multifamily properties as the number of available distressed single-family homes for sale has been depleted over the past two years, according to the 2015 California Investor Survey by the California Association of Realtors.

In the past year 21% of investors purchased in multifamily properties, increasing from 19% in 2014 and 14% in 2013, according to the report.

Further, 80% of investor transactions were nondistressed, compared to 70% in 2014, reflecting the recovering housing market.

Consistent with these findings, the median sales price increased to$375,000in 2015, up from$320,000in 2014 and$292,000in 2013.

With a lack of inventory of lower-priced properties, investors are also shifting to higher-priced properties. The survey shows that of the properties purchased, 23% ranged between$501,000 to $1 million, up from 16% in 2014; 9% were above$1 million, up from 8% in 2014.

Price and location were among the top reasons that investors cited for buying now. Future development potential and size were also cited.

Article source: http://www.nationalmortgagenews.com/news/distressed/investors-shift-to-multifamily-properties-as-market-recovers-1050271-1.html

Mortgage Delinquencies Decline to Precrisis Levels

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Quarterly delinquency rates hit their second lowest rate since 2007-2008’s real estate meltdown, according to the Mortgage Bankers Association.

Delinquencies dropped to a seasonally adjusted rate of 5.54%, 57 basis points below last year’s first quarter and 14 points below 2014’s fourth quarter. Foreclosures remained stable from last year, however, at 0.45% of loans.

The serious delinquency rate, which the MBA defines as loans over 90 days past due, decreased 80 basis points year-over-year and 28 basis points from the previous quarter.

“Delinquency rates and the percentage of loans in foreclosure continued to fall in the first quarter and are now at their lowest levels since 2007,” said Joel Kan, the MBA’s associate vice president of industry surveys and forecasting, in a release accompanying the figures.

“The job market continues to grow, and this is the most important fundamental improving mortgage performance. Additionally, home prices continued to rise, as did the pace of sales, thus increasing equity levels and enabling struggling borrowers to sell if needed.”

The legacy of poor underwriting prior to 2008 continues to haunt the mortgage industry. According to Kan, 73% of delinquent or foreclosed mortgages were originated before 2007.

Article source: http://www.nationalmortgagenews.com/news/distressed/mortgage-delinquencies-decline-to-precrisis-levels-1050233-1.html

White Mountains Backs OneTitle for $13M

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White Mountains Insurance Group has agreed to provide up to $13 million in capital to OneTitle National Guaranty Co. in exchange for a minority equity position. The deal is currently pending regulatory approval.

OneTitle is a New York title insurance underwriter that works directly with attorneys, lenders, developers and homeowners. The company expects this deal will be able to help it expand its footprint beyond New York and accelerate its growth.

“Leveraging this investment and their insurance expertise, we will be able to bring better service and lower rates to even more attorneys, lenders, real estate investors and homeowners,” said founder, president and CEO Daniel Price.

White Mountains has a $3.8 billion market cap, $10.5 billion in assets and $4 billion in common shareholders’ equity.

Among the most successful innovators it’s backed are Esurance from 2000 until its sale to Allstate in 2011. White Mountains’ operating segments include Sirius Group, OneBeacon and HG Global/BAM.

Article source: http://www.nationalmortgagenews.com/news/origination/white-mountains-backs-onetitle-for-13m-1050223-1.html

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