How Effective Is FHA’s Distressed Asset Stabilization Program?

first_img Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Calyx Announces New Integration Next: Home Price Slowdown: Cause for Concern? The Week Ahead: Nearing the Forbearance Exit 2 days ago How Effective Is FHA’s Distressed Asset Stabilization Program? A new study by the Urban Institute analyzed the Government Accountability Office’s (GAO’s) recent evaluation of the Federal Housing Administration’s (FHA’s) Distressed Asset Stabilization Program (DASP). The study found that while the GAO evaluation has made recommendations to improve the quality control of this program, its conclusions on the DASP’s overall effectiveness were “less helpful.”The Urban Institute said the GAO had concluded that “in aggregate sold defaulted loans were more likely to experience foreclosure than comparable unsold defaulted loans.” It had noted the probability of foreclosure 24 months after the loan servicing was transferred to the investor was 43% for sold loans through the program, versus 36% for unsold loans.”Though this figure appears bleak, and is indeed the subject of criticism in the report, it indicates the program’s success, not its weakness,” Laurie Goodman, VP, Housing Finance Policy, Urban Institute; Edward Golding, and Jim Parrott, both Nonresident Fellows at Urban Institute wrote in a blog.The writers said that the figures that GAO reached compared the outcomes of delinquent borrowers who FHA could no longer help because of which they were put into DASP, with borrowers FHA could still help avoid foreclosure. “Put differently, it shows the program changed the probability of foreclosure in that first group from close to 100% to 43%, only 7% higher than the group of borrowers FHA was still in a position to help on its own,” they said.Some of the ways in which investors who bought loans through the DASP helped delinquent borrowers avoid foreclosure included:Extending the loan term to 40 years or cutting the interest rate to below a market rate of interestForgiving the principal on the loansForbearing more than 30% of the loan value, or offering more generous terms for deeds in lieu of foreclosure or short sales”None of these options is available to FHA given their statutory authority,” the researchers pointed out while making a case for the importance of DASP. “Again,  borrowers who participate in DASP are basically out of options with FHA.”However, they added that more needs to be done to “ensure borrowers whose loans were sold through this program got the best shot possible and any foreclosures had minimal impact on the community.” While the FHA had made changes along these lines to the program in 2016, the researchers wrote that only one auction had taken place after these changes were implemented. Because of this, their full impact has not been studied.The study, therefore, made some recommendations that could help FHA improve its program. They included using better information systems and monitoring capability and more personnel and funding to manage the program. However, the most important aspect of FHA improving the program would be by releasing much more loan-level data, including data on DASP, “so that independent analysts can help them evaluate their programs. Indeed, periodic public reporting of outcomes would be valuable.”Click here to read the full blog. Related Articles Share Save Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / How Effective Is FHA’s Distressed Asset Stabilization Program? Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Foreclosure, News Servicers Navigate the Post-Pandemic World 2 days agocenter_img Borrowers Delinquency Distressed Assets FHA Foreclosures GAO Investors mortgage Urban Institute 2019-08-19 Radhika Ojha Tagged with: Borrowers Delinquency Distressed Assets FHA Foreclosures GAO Investors mortgage Urban Institute Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Radhika Ojha August 19, 2019 1,766 Views  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Subscribelast_img read more

Blues legend B.B. King dies at age 89

first_imgThe last King of Rwanda dies at 80 Singer George Michael dies at the age of 53 in England Football legend CK Gyamfi diescenter_img Riley B. King, the legendary guitarist known as B.B. King, whose velvety voice and economical, expressive style brought blues from the margins to the mainstream, died Thursday night at the age of 89.King, inducted into the Rock and Roll Hall of Fame in 1986, had said in May he was in hospice care at his home after being hospitalized in April with dehydration related to diabetes.King’s death was confirmed late on Thursday on a Facebook page linked to the website of his daughter Claudette.The Mississippi native’s reign as “king of the blues” lasted more than six decades and straddled two centuries, influencing a generation of rock and blues musicians, from Eric Clapton and Stevie Ray Vaughan to Sheryl Crow and John Mayer.Born on a Mississippi plantation to sharecropper parents, he outlived his post-World War Two blues peers – Muddy Waters, Howlin’ Wolf, Jimmy Reed, Lightnin’ Hopkins and John Lee Hooker – to see the rough music born in the cotton fields of the segregated South reach a new audience.King will forever be associated with his trademark black Gibson guitars, all of which he christened “Lucille” in recollection of a woman who two men fought over in 1949 in an Arkansas dance hall where he was playing.The men knocked over a kerosene lamp, setting fire to the building. King risked his life to retrieve his $30 guitar.In 2003, Rolling Stone magazine’s list of the 100 greatest guitarists of all time ranked King at No. 3, behind only Jimi Hendrix and Duane Allman.Relatedlast_img read more

Chanderpaul century halts Yorkshire progress

first_imgSHIVNARINE Chanderpaul hit a ton to help Lancashire fight back in the Roses match with Yorkshire at Old Trafford.The Tykes began the day 421-7, and Jack Brooks soon scored the six singles he needed to complete his maiden first-class ton before ending unbeaten on 109 as Yorkshire declared at 448-8.Ryan Sidebottom (2-41) then struck twice as Lancashire slipped to 68-4.But Chanderpaul (106) and Ryan McLaren (63 not out) helped Lancashire reach 264-6 at stumps, 184 runs behind.However, the dismissal of Chanderpaul by Ben Coad with fewer than five overs left in the day will reignite Yorkshire’s hopes of forcing victory if they can clean up the tail on the fourth morning.It is also not yet certain whether James Anderson will bat, the 34-year-old England fast bowler having had to leave the field of play on day one with a tight groin.Chanderpaul’s knock, the 75th first-class century of his career and his fourth for Lancashire, came off 199 balls, including 11 fours and one six.He and McLaren shared 112 for the sixth wicket as the Red Rose endeavoured to frustrate the visiting bowlers.Earlier in the day, 32-year-old seamer Brooks reached three figures for the first time in his career, having passed his previous best score of 53 the previous day.Lancashire’s Shiv Chanderpaul told BBC Radio Manchester:“It was hard work out there. We lost some early wickets and someone had to dig in and lay the foundation. Ryan batted really well, as did Dane Vilas.“Hopefully Ryan can push on and get us beyond the 300-mark and put some more bonus points on the board for us. If we get to 300, we are in a good position to not have to bat again in this match.“I couldn’t believe that I missed that ball and got out. I was really looking forward to batting on tomorrow. I was looking at the scoreboard to see how many overs were left and trying to see out the evening. But that’s the way cricket goes.”last_img read more

Volleyball team struggling to find consistent form

first_imgBrittney Dolgner hopes to help propel the Badgers to a three game winning streak during the upcoming weekend.[/media-credit]After splitting its weekend road series last week — losing to Purdue and beating Indiana — the Badgers continued something that isn’t exactly a new trend for the 9-8 squad.The win-loss pattern has been plaguing the Badgers all season. The team has not won three games in a row all year, and has only strung together two consecutive victories twice, with the last time coming against two ranked opponents, Michigan State and Michigan.But while the Badgers have been able to compete with strong teams in the conference like the Spartans and Wolverines, their inability to string together multiple wins has hampered their chances to move up the ladder in the Big Ten.Currently sitting at fifth place in the Big Ten, Wisconsin has not been anything short of a challenge for the top teams in the conference. But the team knows while it has been able to compete with strong opponents, playing more consistently could push the Badgers into the mix in a tough conference.“A lot of people have been stepping up at different times, but all of us have never been on at the same time,” senior outside hitter Brittney Dolgner said. “We haven’t had a full force as a team. Once we have everybody stepping up together, I think we’ll be unstoppable.”Aside from the lack of consistency from a team standpoint, also making things difficult for the Badgers is their tough schedule, which sends them to different locations each weekend, often traveling long distances with no day off between games. According to Allison Wack, that, along with the difficulty of playing in a hostile environment, can kill a team’s momentum.“It’s for sure hard to play on the road, especially in the Big Ten,” Wack said. “All these schools have really good fan support. At home you can mess up a play, and they still cheer for you. Regardless of where we are, you have to treat the court like it’s your home court, and come in with the same attitude that we have at the Field House.”According to Dolgner, while gaining momentum on the road is a tough task, she believes the team has the capability to do so. But in situations where the Badgers lose the first leg of a two game weekend series, Dolgner said it is difficult to return to where the team wants to be.“If you play on a Friday-Saturday, it depends how you play. If you play well on Friday, it helps you prepare for Saturday. If you lose, you have to work a lot harder at getting that momentum going. It’s really nice [at home] because the fans help create that energy we need.”Nevertheless, with the team still in the hunt for a finish at or near the top of the Big Ten, UW head coach Pete Waite feels that while the Badgers haven’t been able to formulate any notable winning streaks, it hasn’t been streaky on the negative side either. Just as the Badgers haven’t won more than two games in a row all year, they haven’t lost two in a row either.“Really, a win-loss pattern is better than a loss after a loss,” Waite said. “Some teams will get in a funk where they lose one game after another, and this team has responded well. We take the opportunity to learn from our errors and the team has responded to come back with some really good wins.”Regardless, while the players may not be able to concretely explain the team’s inconsistent play, the statistics do provide some answers. In games where the Badgers hit under .200, they are 2-7 and when they have fewer blocks than their opponent, they are only 3-8 on the year.For Wack, staying consistent has been a challenge, but she admits the Badgers’ success and failures this year can be directly attributed to the team’s performance in each individual game.“It’s not a coincidence; it’s what we’re doing,” she said. “The matches we’ve lost, other teams have played better and we haven’t played as well as our side and gotten sloppy. It’s within ourselves and things we can control. It would be great if we could continue that from match to match, but for now it’s something to work on.”Now, with their next two games at the Field House, the Badgers have yet another chance to win three games in a row after beating Indiana last weekend. But as they have already discovered several times this year, it won’t be the easiest task. According to Dolgner, the home court advantage might be a big enough boost to finally propel the team to a winning streak.“I think you kind of have to create your own energy when you’re on the road,” Dolgner said. “But when you’re in the Field House, it kind of creates the energy for you so you can just focus on playing. It’s always a big advantage to be playing at home.”last_img read more