Daily Dose

Counseling may reduce the risk of a first-time homebuyer becoming seriously delinquent by an average of 29 percent on affordable mortgages that required pre-purchase housing counseling, according to research from Freddie Mac. The study also found that one-on-one counseling, classroom counseling, and home study via the Internet, which are the three most common types of housing counseling, are equally effective.

The first hearing, titled "Dodd-Frank Five Years Later: Are We More Stable?" will begin Thursday, July 9, at 10 a.m. Eastern time. The second hearing, titled "Dodd-Frank Five Years Later: Are We More Prosperous?" is scheduled for July 28. The date of the third hearing in the series, titled "Dodd-Frank Five Years Later: Are We More Free?" will be announced later, according to the Committee.

The data points out markets that will make profitable rental markets and where home prices are likely to increase at a good rate over the next few years. These markets must have a population that is growing at a rate of 4 percent or better with people coming into the area in search of jobs.

May 2015's increase was also the largest month-over-month spike for any month since it jumped by 12 percent in November 2014. That month, just like May 2015, ended on a Sunday. According to Black Knight, months that end on a Sunday historically trigger increases in delinquency rates; the top five month-over-month increases in the last seven years have all come on months that ended on a Sunday, Black Knight reported.

The Bureau had also received many requests from lawmakers, lenders, and other mortgage industry professionals who are concerned with their ability to become fully compliant with the requirements of the rule in time for the original August 1 effective date.

Aged foreclosure inventory, which is comprised of residential mortgage loans in active foreclosure that are at least two years delinquent, has seen significant improvement in the last seven months, according to Black Knight Financial Services' May 2015 Mortgage Monitor released Monday.

In January, the company forecasted total national housing market growth for 2015 to reach 1.3 percent, more than five percent lower than growth for 2014 at 6.7 percent. The adjusted forecast presumes that year-end national growth will come in at 2.6 percent, falling within the projected range of 1 percent to 3 percent.

Increasing home values have played a role in reducing foreclosure inventory, since homeowners who either have little equity or are underwater tend to have higher default rates. Nothaft said homeowners underwater by 20 percent or more had a default rate that was four times that of homeowners with a current LTV ratio of 80 percent.

National Appraisal Congress (NAC) has announced the formation of the Society of Young Appraisal Professionals, an NAC subcommittee focused on addressing the declining workforce in the residential valuation space. The new subcommittee's focus will be on actively recruiting, educating, and promoting apprentice appraisers and on brainstorming ideas and developing solutions to help appraisers who have been in the valuation space for five years or less.

“In this scenario, economic factors in the United States reflect a contracting economy marked with rising unemployment, widening credit spreads, low treasury yields, declining asset prices and near-term inflationary pressures brought about by a considerable rise in the price of oil,” the Association reported.