DSNews The homepage of the servicing industry
In Trulia's latest quarterly Bubble Watch report, chief economist Jed Kolko comments that the current housing market is not on the verge of another housing bubble. Kolko estimates that national home prices are about 5 percent undervalued. While ongoing improvements in prices have brought the market closer to a possible tipping point, it is a far cry from the 39 percent overvaluation in the first quarter of 2006. He believes that sharp price gains are not the sign of a bubble unless price levels look high relative to fundamentals.
While the national market is still undervalued, conditions vary widely at the local level. According to Trulia, out of the 100 largest metro markets, home prices are overvalued in 19, including eight of the 11 largest California metros. While the number of overvalued markets is on the rise, perspective is needed. Of the 19 metros where home prices are overvalued, prices were overvalued by more than 10 percent in only 4 large metros. By comparison, at the height of the bubble, all 100 were overvalued, and 91 were overvalued by more than 10 percent
Fannie Mae announced it has revised its maximum fee assessment for servicers that submit late or inaccurate loan reporting. The company fines servicers in order to recoup the losses and damages that result from breaches in servicing, including reimbursement for Fannie Mae's internal administrative costs in tracking, reporting, and correcting errors. The maximum penalty for a first time offense is 5,000 dollars, with second and third offenses capped at $10,000 and $15,000, respectively. The new fee structure goes into effect May 1, 2014.
