WASHINGTON, D.C. (September 13, 2021) – The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 15 basis points from 3.23% of servicers’ portfolio volume in the prior week to 3.08% as of September 5, 2021. According to MBA’s estimate, 1.5 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 11 basis points to 1.52%. Ginnie Mae loans in forbearance decreased 24 basis points to 3.39%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased 25 basis points to 7.27%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 16 basis point to 3.33%, and the percentage of loans in forbearance for depository servicers decreased 18 basis points to 3.15%.
“The share of loans in forbearance decreased by 15 basis points last week, as forbearance exits jumped to their fastest pace since March. The fast pace of exits outweighed the slight increase in new forbearance requests and re-entries,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Servicer call volume jumped last week as summer came to an end and many borrowers reached the end of their forbearance terms. We anticipate a similarly fast pace of exits in the weeks ahead, which should lead to increased call volume and a further decline in the forbearance share.”
After you see how to write a rent increase notice, check out this related article: How To Raise Rent Without Losing Tenants
At some point, all property managers have to raise rent in order to stay profitable, or even to just pay the bills. Ideally, a well-written rent increase notice can help you retain residents and give them positive feelings about the future. We’ll walk you through a few simple steps that will help make your rent increase letters as professional and considerate as possible.
The most important part of raising rent is making sure the law is on your side. These notice periods vary by state.
If possible, try to give ample notice of a rent increase. As you know, renters are more concerned with their personal situation than what’s required of you by law. If they feel like they’re not being given enough notice — even if you’re abiding by the minimum legal notice period — they may feel slighted. They might decide to move, or they could hurt your reputation with negative online reviews. On the other hand, going above and beyond for your renters is a great way to get positive property reviews.
The U.S. economy produced just 235,000 new jobs in August, far below economists’ expectations of 725,000 jobs.
It was the slowest month of growth since January 2021. Roughly one million jobs were produced in the months of both June and July.
“There’s no question that the Delta variant is why today’s job report isn’t stronger,” President Joe Biden said Friday. “I know people were looking, and I was hoping, for a higher number.”
Prior months’ data suggested that employers were ready to increase production to meet consumer demand, but the delta variant impacted hiring, said Joel Kan, the Mortgage Bankers Association‘s vice president of economic and industry forecasting.
“Also, this was the first time in six months that leisure and hospitality hiring did not show a gain and the second month in a row that retail trade saw a decline,” he said. “Overall payroll employment is still 3.5% below where it was pre-pandemic. And the leisure and hospitality sector remained 10% behind.”
The Labor Department report on Friday shows an unemployment rate of 5.2% compared with 5.4% in July, and job gains were concentrated in the professional and business services sectors.
More than half of retailers surveyed by RetailSphere intend to expand their businesses and more are looking for spaces with a smaller footprint, under 2,500 square feet. Grocery, fast-casual, and value stores are leading the charge with more than half of companies in all three sectors saying they’ll expand this year.
“Some companies are opening a handful of stores; others are expanding by hundreds,” the survey read. “Grocery, convenience and fast-casual and value dominate the list of national and regional retailers that are growing.”
Discount stores are expected to expand the most, with Family Dollar opening 500 stores in 2021 and Dollar Tree opening 700, according to the survey.
The heads of three federal agencies are urging state and local governments to enact or extend their own eviction moratoriums until emergency rental assistance is processed after the U.S. Supreme Court ruled the Centers for Disease Control and Prevention (CDC) had exceeded its authority in putting a nationwide eviction moratorium in place.
The government agencies are urging governors, mayors and state courts to not allow tenants to be evicted before they have the chance to apply for rental assistance, and “no eviction should move forward until that application has been processed.”
U.S. Secretary of the Department of Housing and Urban Development (HUD) Marcia L. Fudge, U.S. Secretary of the Treasury Janet L. Yellen, and Attorney General of the U.S. Department of Justice Merrick B. Garland sent a letter to state and local government leaders addressing the eviction moratorium, according to a release.
“Our three departments are working closely together and with other agencies across the federal government to make rental assistance available to households in need,” the letter said.
The U.S. Supreme Court’s decision overturning the Centers for Disease Control’s eviction moratorium has ended the federal ban, but not the questions. Responses to the ruling from a broad spectrum of stakeholders make it clear that much more lies before the crisis is resolved.
Among those voicing support for the ruling was the National Multifamily Housing Council (NMHC), which has been at the forefront of opposition to eviction bans.
“The fact is that housing providers have been forced to completely shoulder the burden for their residents for more than a year, and that is just unsustainable,” Paula Cino, NMHC vice president, construction, development and land use policy, told Multi-Housing News. “The solution is to get financial assistance into the hands of those who need that assistance, which can benefit both residents and housing providers.”
NMHC anticipated rental relief programs would require a period to become fully established. Some jurisdictions have done a much better job establishing programs than others. The NMHC is urging jurisdictions that have been slower to respond to get their programs up and running as quickly as possible, Cino said.
“What we’re also doing now is reminding our providers to really reconnect with their residents to find the solutions right for them,” she added. “That could be extending payment plans or deferments, or helping residents connect with the rental assistance opportunities that are available to them in their areas.”
WASHINGTON—The Supreme Court on Thursday lifted the latest federal ban on evictions during the Covid-19 pandemic, siding with landlords against a moratorium the Biden administration imposed this month despite questions about its legality. Three liberal justices dissented.
The Centers for Disease Control and Prevention has repeatedly renewed the eviction moratorium for millions of tenants affected by the pandemic, in large part to allow them to remain in their homes as state and local governments struggle to disburse some $47 billion of rental assistance provided by Congress. The current order was set to expire Oct. 3; as of July 31, just $4.7 billion of the rental assistance had reached landlords and tenants.
But in Thursday’s unsigned opinion, the court’s conservative majority said the temporary eviction ban exceeded the CDC’s authority to combat communicable diseases, forcing landlords to bear the pandemic’s costs.
Although the share of home sellers dropping their asking price each week continues to increase, so does the median home sale price, which was up 16% from a year ago. Pending sales are declining seasonally but are still up 10% from a year ago. Overall homebuying demand is still very strong. The market frenzy of 2021 has cooled somewhat, but home sellers are still very much in the driver’s seat in the housing market today.
“Demand for homes is making a comeback because even though home prices are high and competition is still steep, homebuyers don’t have many alternatives but to keep trying,” said Redfin Chief Economist Daryl Fairweather. “This continued demand for homes is enticing more homeowners to sell in order to avoid the fear of missing out on historically high prices. This enthusiasm from both buyers and sellers is translating into continued growth in pending sales compared to last year.”
Signed contracts to purchase previously owned homes fell 1.8% in July from June, according to the National Association of Realtors.
Sky-high home prices have caused affordability to drop dramatically in the last several months. The median price of an existing home was up 18% in July, according to the Realtors. Much of that was due to the fact that there was far more activity on the higher end of the market, which skewed that median higher.
Pending sales are a forward-looking indicator of sales that close in one to two months.
“The market may be starting to cool slightly, but at the moment there is not enough supply to match the demand from would-be buyers,” Realtors chief economist Lawrence Yun said in a release. “That said, inventory is slowly increasing and home shoppers should begin to see more options in the coming months.”
A new company has entered the Phoenix market after success in Denver offering guaranteed rent and two-year leases for rental property to landlords to help ease pandemic concerns and vacancy issues with tenants.
Nomad, which started in Denver, said their research shows the Phoenix metro market is a good market for their expansion, according to P.J. O’Neil, founder and a veteran operator of Opendoor.com, which buys homes from individual sellers.
A key is that the company is not a property manager, but it does guarantee leases, so landlords can continue to manage their own properties if they desire, or choose a third-party property management company.