Latest news with #FHA
Newsweek
5 days ago
- Business
- Newsweek
Map Shows Where Homeowners Are Behind on Mortgage Payments
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. With rising property taxes and surging home insurance premiums, homeowners are struggling to keep hold of their properties, as shown by a recent increase in serious mortgage delinquencies across the United States. Serious mortgage delinquency rates started climbing across the country in mid-2024, reversing a trend of steady declines established in the previous three years, according to a new report by Cotality. Almost all states saw a slight uptick—but in some, including Louisiana, Florida, and Georgia, delinquency rates skyrocketed over the past year. What Is a Serious Delinquency? A serious delinquency happens when a mortgage loan is 90 days or more past due. At that point, a bank considers the mortgage in danger of default and can take possession of the property to recoup losses. While banks would usually try to work out a solution with borrowers, homeowners stand to lose their home if they fall so much behind on payments. Where Did Serious Delinquency Rates Rise the Most Over the Past Year? The biggest year-over-year increase in serious delinquencies in the nation was reported in Louisiana, where rates went up by an overall 1.87 percent for all loans. More specifically, conventional loans saw an uptick in serious delinquencies of 1.25 percent; FHA loans of 3.96 percent; and VA loans of 5.44 percent. It was followed by Florida, with a 1.43 percent year-over-year increase for all loans; Oklahoma, with 1.24 percent; Georgia, with 1.12 percent; Texas, with 1.11 percent; Indiana, with 1.09 percent; South Carolina, with 1.05 percent; North Carolina, with 0.83 percent; Nebraska, with 0.81 percent; and Colorado, with 0.55 percent. Why Are Serious Delinquency Rates Going Up? Even homeowners who are dealing with relatively cheaper monthly payments are struggling with the higher cost of homeownership, due in part to the explosion in property values linked to the COVID-19 pandemic homebuying frenzy and in part to the increased frequency of particularly devastating extreme weather events. Colorado, Georgia and Florida, which experienced the three highest year-over-year increases in serious delinquency rates between 2024 and 2025, also reported the highest jumps in property taxes between 2019 and 2024, according to Cotality data. In Colorado, property taxes surged by 52.9 percent in those five years; in Georgia, by 51.5 percent; in Florida, by 47.5 percent. In Texas and California, property taxes also increased by over 30 percent within the same time frame. These same states—which are particularly vulnerable to an array of natural disasters ranging from hurricanes to wildfires and flooding—have faced steep increases in homeowner insurance rates over the past five years. Not only do insurers want to charge more to keep up with higher catastrophe exposures, but homeowners in these states have also faced shrinking availability due to carriers withdrawing from the most at-risk areas. In South Carolina, a total of 14 insurers ran out of funds between 2020 and 2023, leaving homeowners scrambling for options in the private market. The highest overall delinquency rate, however, was reported in Mississippi, a state which also has the lowest median household income and is among the top 15 states at risk of storm surge damage from hurricanes, according to Cotality data.
Time Business News
6 days ago
- Business
- Time Business News
What to Ask Reverse Mortgage Brokers Before Committing
Reverse mortgages are valuable tools that support senior homeowners' financial security and independence. While they offer financial flexibility, their intricacies can be easily misunderstood. This loan allows you to utilize your home equity without selling the property. Still, it also has terms, responsibilities, and long-term implications that can affect your future and your family's inheritance. Therefore, asking the right questions before signing any contract is paramount. The goal isn't simply to get answers; it's to understand what you'll agree to, ensure the broker is acting in your best interest, and make sound financial decisions. To simplify things for you, here's a breakdown of things to clarify and why they matter: Before getting into the loan's intricacies, you must confirm that you're working with a reputable, experienced loan officer. They must be honest and accountable, as they are your point of contact throughout the process. To verify their legitimacy, ask whether they're certified by the Federal Housing Administration (FHA) or the U.S. Department of Housing and Urban Development (HUD). Suppose you want to apply for a home equity conversion mortgage (HECM). It's a federally insured and regulated loan, and working with a HUD-approved lender is essential to ensure compliance with federal standards. You can ask them to present their license as proof of their credibility. Another factor to consider is how long they've worked with reverse mortgages. These loans are more complex than traditional ones, so it helps to know your broker has in-depth knowledge and extensive experience handling different reverse mortgage products. Once you've confirmed that your lender is legitimate and experienced, you can explore the loan's fine print. Instead of rushing through the numbers, you must focus on clarifying the following: How much equity will be accessible Types of fees involved (origination, closing, ongoing, etc.) Applicable interest rates and how they work in the loan Available payout options Any limitations once the loan has been closed Keep in mind that reverse mortgages aren't one-size-fits-all financial tools. Each element affects your long-term financial plans, from how much money you can get to how quickly your equity will be consumed. Inquiring about these details will help you prepare for potential additional costs and unexpected restrictions. All borrowers must keep up with specific responsibilities as homeowners when they sign up for a reverse mortgage. Take this opportunity to clarify what specific home maintenance tasks you must fulfill regularly and who pays property taxes and insurance. Like traditional types, reverse mortgages can default when borrowers fall behind their obligations and payments. It's also advisable to ask what other consequences may occur. Doing so will help you remember what to do once the mortgage closes, budget accordingly, and avoid potential risks. Counseling is mandatory when applying for reverse mortgages since they're more complex than conventional loans. For example, federally insured reverse loans are non-recourse loans, meaning borrowers will not owe more than their property's appraised value at the time of sale. However, the loan balance can sometimes exceed that value, and knowing your options for covering the excess amount can help you manage your finances responsibly. Counseling sessions are the best avenue to clarify such scenarios and any consumer protections involved. A good lender will encourage you to go through with the session and provide the necessary assistance and resources. It isn't merely a paperwork formality; it's your chance to understand the loan's terms and built-in safeguards and confirm whether the loan is right for you. While reverse loans provide financial assistance for senior homeowners to live quality lives, they can also affect your heirs and estate. It's essential to ask about loan repayment after you move out or pass away, what options your heirs have if they keep the house, and whether it has non-recourse protections. There are safeguards for heirs, but the conditions vary depending on their relationship to the borrower and (for spouses) eligibility as co-borrowers. So, don't hesitate to ask your loan officer about the relevant policies, any applicable non-recourse protections, and how they can affect your estate and long-term plans. Reverse loans can offer financial stability and peace of mind in your golden years only if you fully understand how they work, what they involve, and what they require. Take your time asking everything there is to know and anything unclear. By asking reverse mortgage brokers the right questions, you can make informed decisions, maximize your home equity, and protect your future. TIME BUSINESS NEWS
Business Wire
6 days ago
- Business
- Business Wire
Dwight Capital and Dwight Mortgage Trust Finance $446.8MM in June 2025
MIAMI--(BUSINESS WIRE)-- Dwight Capital and its affiliate REIT, Dwight Mortgage Trust ('DMT'), closed $446.8 million in real estate financings in June. The largest transaction was a $230 million bridge loan financed by DMT to support the acquisition of a 19-property skilled nursing/assisted living portfolio located throughout Ohio. These facilities comprise a total of 1,896 beds. In conjunction with the bridge loan, Dwight Healthcare Funding provided a $12 million working capital line of credit to support the portfolio's ongoing operational needs. The $230 million financing marks DMT's largest bridge transaction to date, highlighting Dwight's strong presence in the healthcare lending space. It was originated by Adam Offman, Managing Director of Healthcare Finance, and Yossi Benish, Vice President of Business Development. Dwight Capital also closed a combined $61.9 million in two HUD 223(f) loans for Springs at Bettendorf, a 316-unit townhome-style community in Bettendorf, Iowa, and The Grove, a 118-unit luxury multifamily property in Saint Paul, Minnesota. Springs at Bettendorf is ENERGY STAR certified, and The Grove is GreenPoint Gold Rated, reflecting a commitment to environmentally sustainable design and energy efficiency. The loan proceeds from both loans will be used to retire existing debt, cover closing costs, complete repairs, and establish funds for future capital expenditures. Both loans were closed on behalf of repeat client, Continental Properties, based out of Menomonee Falls, WI. About Dwight Capital Dwight Capital LLC is a leading commercial real estate finance company in the United States, with a loan servicing portfolio exceeding $13 billion. Our services encompass a wide range of commercial lending options, including Balance-Sheet Bridge & New Construction Loans, FHA/HUD Insured Loans, C-PACE Financing, Mezzanine Financing, and Preferred Equity. For more information about Dwight Capital, please visit: About Dwight Mortgage Trust Dwight Mortgage Trust LLC ('DMT' or the 'Fund') is an actively managed real estate investment trust specializing in the origination and financing of commercial mortgages across a range of real estate asset classes. DMT works in conjunction with affiliate firm Dwight Capital to source and evaluate lending opportunities nationwide. The Fund partners with experienced sponsors on projects in major markets, focusing on investments with a clearly defined exit strategy.
Miami Herald
14-07-2025
- Business
- Miami Herald
How immigration issues can affect Florida real estate. ‘I can't live here.'
Some buyers have the upper hand in Florida, with rising inventory and developers offering sales incentives. But immigration issues also are affecting the real estate market, with uncertainty leading some property owners to sell their homes quickly to capitalize on rising prices. 'There are people leaving, calling me ... to put their house up for sale. 'I'm going back, I can't live here,' ' Gisela Rojas, a broker with Caissa Realty Investment, told el Nuevo Herald. Rojas, based in Orlando but also active in the Miami area said that many of the new listings she is handling are 'people who are returning to Colombia, Mexico, Venezuela and are looking for other places like Spain to start a new life.' 'I'm seeing it up close; most of them are facing immigration uncertainty,' said Rojas, who has a prominent social media presence and appears on Telemundo and Univision. 'They had already achieved the American dream without being residents, with a lot of effort.' Many immigrants bought homes by taking advantage of federal FHA loans, which allow for low down payments of around 3.5%, and other assistance for first-time buyers. They also became homeowners when mortgage interest rates were lower than the current just-under 7%. In most of Florida, a single person needs to earn around $80,000 to own a home, and in more expensive cities like Miami, Doral, Pembroke Pines and Weston, it's closer to $140,000. In addition to the high prices in Miami-Dade, especially compared to wages, buyers in the Miami metropolitan area, which includes Fort Lauderdale and West Palm Beach, are paying mortgage rates above the national average. Mortgages in a buyer-friendly market Those with undefined immigration status who bought property a few years ago now have significant equity in their homes and are selling quickly to take advantage of that, Rojas said. Rojas points out that at a time when properties are staying on the market for 90 to 120 days, buyers can get a lot of benefits from sellers and also from developers, who are trying to drive sales of new construction. 'Builders are offering incentives. Yesterday I was able to put a contract on a new home for $600,000, and they gave the buyer $38,000 for closing costs,' Rojas said. Property appraisals are also coming in below the asking price, sometimes $30,000 less, giving buyers more leeway to persuade sellers to lower the price, he said. With the market in their favor, buyers should look for alternatives to finance. Those who can't qualify for an FHA loan can try for a conventional loan. Other programs require a buyer to have low or limited income, such as HomeReady Mortgage and Home Possible. Offers and incentives for renting in Florida The rental market is trending downward, especially in Central Florida around Orlando, Rojas said. But she hasn't noticed price declines in Miami and other high-demand cities, although there is increasing inventory. 'There are a lot of new condos for rent, and they offer incentives, like three months of free rent and no deposit required,' Rojas said. The real estate agent also sees opportunities for investors, who can buy properties at a discount in areas that will later appreciate in value, while also earning a return on the monthly rent. 'We're talking about two realities because foreign investors are arriving,' Rojas said, 'looking for people desperate to get out of their properties.'
Yahoo
12-07-2025
- Business
- Yahoo
HUD studies BNPL housing risks
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. The growth of buy now, pay later loans has drawn the attention of federal housing officials who have posed a series of questions on how this type of consumer lending may impact housing payments and the market's overall stability. The Department of Housing and Urban Development issued a request for public comment late last month on BNPL loans, posing nearly two dozen questions about the industry, BNPL customers and metrics assessing a borrower's overall financial situation. 'As consumers take on additional short-term debt obligations through BNPL services, their capacity to manage housing-related expenses, such as rent or mortgage payments, may be affected,' HUD said in its request, issued June 24. The department oversees a federal fund providing insurance for mortgages that are guaranteed by the Federal Housing Administration. HUD must understand 'the intersection between BNPL lending and housing-related expenses' to determine if current policies work 'or if development of BNPL-specific policies are warranted for FHA to continue to support financial self-sufficiency and housing stability,' the department wrote in the notice seeking information from industry players and others. HUD said the effort aims to give housing policymakers a better understanding of how 'emerging' products like BNPL loans 'may affect FHA-approved mortgagees' ability to fully evaluate a borrower's financial profile and capacity to sustain long-term homeownership.' Current FHA policies 'largely exclude' BNPL loans from underwriting determinations, HUD said. That's because closed-end debts like BNPL loans don't have to be included in FHA loans if the debt will be paid off within 10 months from the property closing date and the total payments of all BNPL loans are 5% or less of a borrower's gross monthly income. These are some of the 22 questions in HUD's solicitation: 'What financial behaviors set frequent BNPL users apart from traditional credit users, and how can this guide FHA risk assessments?' 'How does frequent BNPL usage affect borrowers' ability to meet housing-related expenses, including rent or mortgage payments?' 'What housing-related expenses are most often sacrificed to repay BNPL debts?' 'How can BNPL payment histories be effectively integrated into traditional credit reporting systems to help borrowers build credit profiles?' The department's evaluation of BNPL lending comes as another executive branch agency, the Consumer Financial Protection Bureau, has retreated from a rule interpretation under which it had planned to afford BNPL users many of the same consumer protections required for credit cards. The CFPB, under the new leadership of the Trump administration, said in March it would drop that effort, which the bureau began last year under the Biden administration. The Financial Technology Association, which represents numerous fintechs including BNPL companies Block, Klarna and PayPal Holdings, sued to block the bureau's BNPL rule interpretation arising from the Truth in Lending Act. The BNPL industry has begun to make some initial efforts to have their lending data incorporated into consumer credit scores. Earlier this year, San Francisco-based Affirm began reporting data to Experian and TransUnion, two of the three main credit-reporting agencies. Last month, FICO said it plans to include BNPL data within some of its credit scores later this year. Four large BNPL providers, Affirm, Klarna, PayPal Holdings and Sezzle, had no comment on HUD's information request, spokespeople for the companies said via email. 'It is encouraging to see credit bureaus and scoring companies working to model BNPL correctly, and we hope they will continue to evolve their models to ensure accuracy in the data and transparent decision-making,' FTA spokesperson Miranda Margowsky said Wednesday in an email. The FTA will submit comments on HUD's BNPL request, she said. A separate trade group, the American Fintech Council, said it's 'encouraged by HUD's decision to understand how BNPL products may impact borrowers in FHA programs.' 'The industry recognizes the importance of ensuring that consumers' usage of these products are properly captured and understood from a credit perspective,' Ian Moloney, the AFC's head of policy and regulatory affairs, said Thursday in an email. Comments to HUD are due by Aug. 25. The department has collected nearly two dozen to date. A commenter named Marcelle Giles wrote July 2 that BNPL companies should be required to report to credit bureaus, especially in cases where a loan allows more than four payments. 'We've had borrowers that seem to live on these, using the BNPL for groceries and regular living expenses and not necessarily for making a purchase,' wrote Giles, who didn't disclose how he is familiar with lending practices. 'We'd give that borrower way more scrutiny to see how they manage their funds and can they really afford a home.' Recommended Reading CFPB, consumer groups clash over BNPL Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
