Market Studies

The current data for foreclosures and mortgage delinquencies shows significant improvement compared to data from five years ago, the universally accepted peak of the mortgage crisis, according to HOPE NOW, a private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors.

While no single-family securitizations came to market in July or August of this year—Morningstar attributes the slowdown to issuers’ redirection of focus from property acquisition to property management—the agency said there are two bright spots in the SFR market as of late.

A combination of a lack of housing inventory, especially discounted and distressed, and a surge in demand for rental housing has caused more investors to turn to the build to rent strategy—that is, building a single-family home with the specific intent of renting it rather than sell it to an owner occupant.

The macroeconomic picture in the U.S. continues to battle economic headwinds—namely a September jobs report that came in below expectations and an appreciating dollar which will pressure the already growing U.S. trade deficit, Fannie Mae said. Yet, housing remains in a fairly positive zone, considering all of the factors weighing it down.

KBW pointed to Starwood Waypoint’s merger with Colony American Homes as a boon for the firm, saying “while dilutive to book value,” the deal will resolve strategic issues that “SWAY has been facing including scale and its externally managed corporate structure.”

Investors are effectively no longer overpaying for assets in the residential housing market, according to Auction.com EVP Rick Sharga in the company’s quarterly housing update on Thursday. But for those investors paying at or close to market value for their ...

The reporting period for the latest Beige Book found residential housing markets have generally improved since the last report with increasing home prices and sales volumes driving the improved housing markets.

Loss severities on loans serviced by banks were reported to be more than 10 percent higher than loss severities on non-bank serviced loans in those three states, which accounted for 42 percent of all subprime loans in foreclosure in private-label residential mortgage-backed securities.

Those factors include higher mortgage rates, tightening credit standards, rising home prices, an increased number of rental options, ever-increasing student loan debt, and the number of household formations to building permits combined with declines in income growth, distressed sales, personal savings rate, and the overall desire to earn a home, said Chris Crippen, managing director for US Residential Asset Fund.

The consensus among the many panelists over the two-hour Property Acquisition Lab is that the SFR market is here to stay despite some naysayers who still don't believe the market can survive despite so many companies experiencing widespread success in the SFR space.