Daily Archives: October 21, 2014

Top Subprime Mortgage Firm Accused of Abuses | #WaccabucRealEstate

 

The nation’s largest servicer of subprime mortgages has engaged in abuses that could potentially harm hundreds of thousands of borrowers, according to the New York Superintendent of Financial Services.

The state regulator issued a letter Tuesday to Ocwen Financial Corp., documenting many of the same kinds of abuses that worsened the housing crisis and the Great Recession.

Ocwen inappropriately backdated foreclosure warnings and letters that denied mortgage loan modifications, making it nearly impossible for borrowers to appeal the company’s decision, according to the letter from Benjamin Lawsky, New York’s Superintendent of Financial Services.

Many borrowers who had fallen behind on their payments also received warning letters months after the deadline for avoiding foreclosure had already passed.

The agency also determined that Atlanta-based Ocwen failed to investigate the backdating of its letters to borrowers nearly a year after an employee raised questions about the practice.

“The existence and pervasiveness of these issues raise critical questions about Ocwen’s ability to perform its core function of servicing loans,” Lawsky wrote in the letter.

The letter refrains from saying whether the backdating was intentional or the result of poor oversight by Ocwen.

In a statement Tuesday, Ocwen blamed software errors in the company’s correspondence systems for the improperly dated letters to at least 281 of its borrowers in New York who received letters with incorrect dates.

The company added that it is investigating two other cases and cooperating with New York’s Financial Services department.

“We believe that we have resolved the letter-dating issues that have been identified to date, and we continue our investigation as to whether there are additional letter-dating issues that need to be resolved,” the company said.

Lawsky launched a probe into Ocwen in August amid allegations that Ocwen overcharged struggling homeowners on a product called force-placed insurance, which servicers force borrowers to buy if they don’t maintain voluntary homeowners’ insurance.

If mortgage borrowers don’t pay up for newly purchased insurance, Ocwen forecloses on their homes.

 

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http://abcnews.go.com/Business/wireStory/top-subprime-mortgage-firm-accused-abuses-26348931

Mount Kisco Scores High In Economic Growth Survey | Mt Kisco Real Estate

Mount Kisco receives high marks in a new economic growth survey from financial news site NerdWallet.

The municipality comes in seventh out of 188 communities that were researched for the site’s “Cities on the Rise” survey.

Criteria used for the survey, according to NerdWallet, involve growth in income, employment and population.

NerdWallet’s data, which are as recent as 2012, show that Mount Kisco’s working-age population is 8,863 and that it had a median income of $50,342.

The survey also shows that from 2009 to 2012, Mount Kisco’s working-age population grew by 5.47 percent and that its median income grew by 18.75 percent.

Mount Kisco was also the highest-scoring Westchester County community in the survey. The next-highest community in Westchester is Mamaroneck, which came in 14th.

 

 

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http://mtkisco.dailyvoice.com/news/mount-kisco-scores-high-economic-growth-survey

 

Why Boomerang Kids Bounce Back | Katonah Real Estate

Not only are the numbers of young people over 18 who live with their parents reaching unprecedented numbers, higher than previously assumed, they are not necessarily moving out when their financial situations improve, a according to a new study by Federal Reserve economists that may have important ramifications for housing marks.

The fraction of young adults residing with parents has reached a historic high of 36 percent. This new trend has grabbed the attention of journalists and policy makers alike, who have popularized terms likethe “boomerang generation,” referring to young adults who move back in with their parents after having lived on their own.  Young adults who “boomerang” are generally described as unable to live independently due to poor economic outcomes. Debt, and particularly student loans, among young adults has also expanded substantially over the past decade.

Nearly 40 percent of young adults carried student loans in 2010, up from 26 percent in 2001, and aggregate student loan balances have exploded in recent years, exceeding $1 trillion in 2013. The fraction of young adults living at home rose from 31.3 percent in first quarter of 2005 to 35.9 percent in first quarter of 2014.

Economists Lisa J. Dettling and Joanne W. Hsu found that increased indebtedness and problems managing debt – as measured by larger account balances, falling credit scores and delinquency on account(s)– increase large numbers of young people who return home to live with their parental co-residence.  Between 2005 and 2013 increases in student loan debt and delinquency and declines in credit card and auto debt account for 30 percent of the increase in flows into co-residence with parents and 26 percent of the increase in median time young people spent in co-residence.

However, less debt does not necessarily lead to a return to independent living.   “In fact, it seems highly likely the decision to move out will be more nuanced and idiosyncratic than the decision to move in: a period of financial distress may force an individual to move in with a parent, but a return to financial solvency does not necessarily force, or even create a sense of urgency for an individual to move out,” they said in a paper published last month by the Federal Reserve.

Large debt balances can actually shorten the time young people spend at home. The study found that young people with larger student loan and auto loan balances decrease the duration of time spent at home: a $10,000 increase in loans decreases the duration of co-residence by 1.5 percent for student loans and 4.9 percent for auto loans. Credit card balances also slightly reduce the time spent at home, though the effects were not precisely measured. Similarly, for each loan type, being current on payments reduces the duration with parents by 10 to 18 percent, relative to not having that loan type.

For student loans, each loan status reduces durations in co-residence relative to having no student loans– except for severe delinquency. Delinquency of 90 days or more, however, is associated with a 7.5 percent increase in the duration in co-residence. A student loan in deferment increases time spent in co-residence relative to being current, but durations are still almost 10 percent lower than those without student loans.  This indicates that deferment enables a young adult to reduce the length of time spent in co-residence, relative to those who become severely delinquent during the period of co-residence.

For auto loans, severe delinquency increases time spent in co-residence relative to mild delinquency and being current. For credit cards, being current and being seriously delinquent have similar effects on the duration.

 

 

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http://www.realestateeconomywatch.com/2014/10/why-boomerang-kids-bounce-back/

 

Homeowner’s Claims Can Send Premiums Sky High | Katonah Real Estate

Filing a single homeowner’s insurance claim can raise consumers’ annual insurance premiums by more than 30 percent, or hundreds of dollars each year, according to research by insuranceQuotes.com, a subsidiary of Bankrate Insurance.

Nationally, one claim leads to an average premium increase of nine percent. The states with the highest single claim increases are Wyoming (+32%), Connecticut (+21%), Arizona (+20%), New Mexico (+19%) and California (+18%).

In Texas, home insurers are not allowed to increase premiums after one claim. The next-lowest increases were observed in New York (+2%), Massachusetts (+2%), Florida (+3%) and Vermont (+4%).

A second claim brings the national average increase up to 20% (the highest increase from a second claim was Michigan’s 71%).

“Homeowners need to be really careful when filing claims,” said Laura Adams, insuranceQuotes.com’s senior analyst. “Even a denied claim can cause your premium to go up. Make sure to know your policy’s specific guidelines and only file a claim when absolutely necessary. Winning a small claim could actually cost you money in the long run.”

Nationally, liability claims are most likely to cause the greatest premium increases. A single liability claim causes premiums to rise by an average of 14%. Theft, vandalism and fire are not far behind. Medical claims (+2%) are the cheapest.

 

 

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http://www.realestateeconomywatch.com/2014/10/8159/

 

New Fed Study: Student Loans Dont Stop Grads | Bedford Hills Real Estate

A study by Federal Reserve economists released today torpedoes the contention that college grads are being prevented from buying houses by student loan debt.  Rather, they are buying house at the same rate as grads with no student loan debt.

The findings have wide-ranging implications for the future of homeownership.   Surveys conducted by the national Association of Realtors and others have found widespread concern about the impact of student loan debt, which topped $1 trillion last year, on homeownership.  The implementation of the QM rule governing mortgage underwriting standards sets a 43 percent debt to income ration, with no exceptions, making it difficult for many paying off student loans to qualify, which could crush recovery of the housing market in the near future.  Concern even sparked legislation in Congress for a debt modification program.

The latest Fed study may lower the angst level and put the debate on a calmer, more rational level. Using a nationally representative sample of young individuals with credit records who were between the ages of 29 and 31 in years 2004-2010, the homeownership rate declined relatively more for those with student loan debt than for those without student loan debt.  Thus, while homeownership rates were generally higher for those with student loan debt during the entire period, the difference between the rates became much smaller by the end of 2010, suggesting that student debt may have made ownership more difficult.

In contrast, separating the group of individuals with no student debt into two subgroups: (i) those with no college education (the blue line) and (ii) those with some college education (the red line). The panel illustrates that the homeownership rates between the two groups differ substantially, with an average homeownership rate gap of about 13 percentage points over the full period. Moreover, the evolution of homeownership rate across time varies between the two groups, suggesting that combining individuals with no student loan debt and with or without college education into a single group could indeed confound statistical findings related to the relationship between homeownership and student loan debt.

Panel C compares the changes in homeownership between those with college education with and without student debt (the green and the red lines, respectively). The panel suggests that the observed declines in homeownership are not dissimilar between those with and without debt and college education

 

 

 

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http://www.realestateeconomywatch.com/2014/10/8139/

 

Tiger Woods’ Very Well Moneyed Ex Moves in to New Mansion | Bedford Real Estate

elin_final_house.jpg[Photos via Splash News/Jose Lambiet’s Gossip Extra]

Two-timing Tiger Woods‘ ex-wife (girl made a $100 million killing in the divorce) Elin Nordegren has moved into her new $20 million beachfront estate and… as Jose Lambiet points out, it’s got golf! The putting green, complete with two bunkers are likely for Nordegren’s son Charlie who “dabbles in golf”. The very large house, which replaces a smaller historic house that it looked somewhat similar to, includes a rooftop terrace, home theater with stadium seating, 70-40 foot pool, 1,000 square foot master bedroom suite, and 1,102 square foot gym.

 

 

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http://miami.curbed.com/archives/2014/10/20/tiger-woods-very-succesful-ex-moves-in-to-new-mansion.php

 

$65M Historic Mansion is Miami’s Most Expensive Listing | Pound Ridge Homes

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A 17,000-square-foot historic mansion dating to the 1920s has hit the market in Miami for $65M, making it the city’s priciest listing. Naturally, it’s represented by same real estate agent who listed America’s most expensive property, a $139M spectacle with a 22-carat gold leaf entry gate, also in Florida. This comparatively modest nine-bedroom mansion in the affluent Coconut Grove neighborhood comes with 6.9 acres of “mature landscaping,” a private port that accommodates a 70-foot yacht, and a lot of charming original woodwork, including exposed ceiling beams and wooden balconies.

Gawk away at the 1920s splendor. >>

It’s not Miami’s most expensive listing ever—those honors go to Gianni Versace’s over-the-top Casa Casuarina, listed for $125M before getting a bunch of PriceChops and selling at auction a year later for just $41.5M—but this place does have a guest cottage and a four-car garage in a converted coach house. Oh, and there’s a bit of policy history here: original owner Kirk Munroe, who was deeded the land in 1886, introduced the first animal protection legislation in Florida’s history after an injured manatee washed onto his property. Hopefully the oligarch who buys this will also be an advocate for manatees (or at least be careful when parking the yacht).

 

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http://curbed.com/archives/2014/10/20/65-million-house-for-sale-miami-la-brisa-most-expensive-house.php

 

 

 

Remodeled 1950s Idyll in Suburban Houston Asks $2.9M | Bedford Corners Real Estate

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Location: Houston, Texas
Price: $2,895,000
The Skinny: Designed in 1956, in the early days of the Tanglewood neighborhood of Houston, Texas, this five-bedroom home was recently remodeled with “amazing architectural elements from Chateau Dominigue,” a local importer of antique European building materials. That’s where the limestone tiles, stone mantels, and antique wood beams came from, which look pretty nice, and would look even better if the rest of the interior weren’t so whitewashed. The .87-acre site is apparently one of the largest in this upscale subdivision, the implication being that there’s “plenty of room to expand” on the 6,850 square feet already there. Bought last December for $2,795,000, this very picturesque suburban dwelling is back on the market after less than a year asking $2,895,000.

 

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http://curbed.com/archives/2014/10/20/tanglewood-houston-home-for-sale.php