TRANSUNION REPORTS 1.5 MILLION BOOMERANG BUYERS COULD RE-ENTER HOUSING MARKET IN NEXT THREE YEARS

| Patrick Carmichael

More than 1.5 million home buyers negatively impacted by the financial crisis could potentially re-enter the mortgage market in the next three years, according to a new study from TransUnion. This population of consumers negatively impacted by the financial crisis – commonly known as boomerang buyers – was defined by TransUnion as being 60+ days […]

More than 1.5 million home buyers negatively impacted by the financial crisis could potentially re-enter the mortgage market in the next three years, according to a new study from TransUnion. This population of consumers negatively impacted by the financial crisis – commonly known as boomerang buyers – was defined by TransUnion as being 60+ days delinquent on a mortgage loan, having lost a mortgage through foreclosure, short sale or other non-satisfactory closure, or having a mortgage loan modification.

TransUnion’s study found that approximately 700,000 boomerang buyers may be able to re-enter the housing market in 2015. Over the next five years, TransUnion anticipates 2.2 million boomerang buyers could re-enter the market.

The study analyzed the overall U.S. credit-active population at the end of 2006 (the end of the mortgage Bubble), the end of 2009 (the end of the Burst) and in 2014 to determine consumers’ ability to re-enter the mortgage market.

According to TransUnion’s study, 42% of the recovered consumers currently have a mortgage, while 58% of the recovered consumers have not yet re-entered the mortgage market.

NEW LOAN DISCLOSURES TILA/RESPA

| Patrick Carmichael

On August 1, the long-awaited TILA/RESPA integration will go into effect. As of that date, for most transactions, the Good Faith Estimate (GFE) and the HUD-1 will no longer be used, and instead, two new forms will appear. First, the GFE and the initial Truth-in-Lending disclosures will be combined into a new form called the […]

On August 1, the long-awaited TILA/RESPA integration will go into effect. As of that date, for most transactions, the Good Faith Estimate (GFE) and the HUD-1 will no longer be used, and instead, two new forms will appear. First, the GFE and the initial Truth-in-Lending disclosures will be combined into a new form called the Loan Estimate. Second, the HUD-1 and the final Truth-in-Lending disclosures will be combined into another new form called the Closing Disclosure.

MOST MILLENNIALS UNAWARE OF CLOSING COSTS

| Patrick Carmichael

A new survey by ClosingCorp reveals that approximately two-thirds of millennials who plan to buy a home are unaware of closing costs. The survey also found that across all adult age brackets, more than one-third of potential homeowners are “Not Very” or “Not At All” aware of closing costs. The survey of more than 1,000 […]

A new survey by ClosingCorp reveals that approximately two-thirds of millennials who plan to buy a home are unaware of closing costs. The survey also found that across all adult age brackets, more than one-third of potential homeowners are “Not Very” or “Not At All” aware of closing costs.

The survey of more than 1,000 adults also found that most people learn about closing costs from their real estate agent, or by doing their own research. In fact, millennial homeowners are more likely to learn about closing costs from their agent as opposed to a lender by a ratio of nearly two-to-one.

“This study is very interesting in that it shows millennials are more dependent on REALTORS® than previously presumed,” said Brian Benson, CEO of ClosingCorp. “We know they are more tech-savvy than their predecessors, so we believe this really highlights the complexity of a residential real estate transaction. Whether they are researching a home on their own or getting help from an interested third party, the bottom line is that people need access to the correct information, and it needs to be simple for them to understand. With the upcoming changes to the disclosure process being made by the Consumer Financial Protection Bureau this August, we as an industry should be stepping up our proactive education efforts to ensure homebuyers are fully prepared to make the most significant financial transaction of their lives.”

HOME STAGING CAN HELP SELL HOME FOR MORE

| Patrick Carmichael

Most homeowners know it is important to keep a home clean, bright, and free from clutter while it is on the market for sale. But sometimes, REALTORS® say, taking the extra step to stage a home can make a difference in how a buyer values it and the price a seller might get for it, […]

Most homeowners know it is important to keep a home clean, bright, and free from clutter while it is on the market for sale. But sometimes, REALTORS® say, taking the extra step to stage a home can make a difference in how a buyer values it and the price a seller might get for it, according to the NATIONAL ASSOCIATION OF REALTORS® 2015 Profile of Home Staging.

The report, the first of its kind from NAR, found that 49 percent of surveyed REALTORS® who work with buyers believe staging usually has an effect on the buyer’s view of the home. Another 47 percent believe that staging only sometimes has an impact on a buyer’s view of the home only. Only 4 percent of REALTORS® said staging has no impact on buyer perceptions.

REALTORS® on the buyer side believe that staging makes an impact in several ways:
• Eight-one percent said staging helps buyers visualize the property as a future home
• More than 45 percent said it makes prospective buyers more willing to walk through a home they saw online
• Forty-five percent said a home decorated to a buyer’s tastes positively impacts its value;
• Ten percent of REALTORS® said a home decorated against a buyer’s tastes could negatively impact the home’s value
From the seller side, a majority of Realtors® utilize staging as a tool in at least some instances.
• Just over one-third of REALTORS® (34 percent) utilize staging on all homes
• Thirteen percent tend to stage only those homes difficult to sell
• Four percent will do staging only for higher priced homes.
• The median cost spent on staging a home is $675. Sixty-two percent of REALTORS® representing sellers say they offer home staging service to sellers, while 39 percent say the seller pays before listing the home.

CONSUMER CONFIDENCE INDEX INCREASED SHARPLY IN JANUARY

| Patrick Carmichael

The Conference Board Consumer Confidence Index, which had increased in December, rose sharply in January. The Index now stands at 102.9 (1985=100), up from 93.1 in December. The Present Situation Index rose to 112.6 from 99.9, while the Expectations Index increased to 96.4 from 88.5 in December. Consumers’ assessment of present-day conditions was considerably more […]

The Conference Board Consumer Confidence Index, which had increased in December, rose sharply in January. The Index now stands at 102.9 (1985=100), up from 93.1 in December. The Present Situation Index rose to 112.6 from 99.9, while the Expectations Index increased to 96.4 from 88.5 in December.
Consumers’ assessment of present-day conditions was considerably more favorable in January than in December, with those saying business conditions are “good” increasing from 24.7 percent to 28.1 percent, and those claiming business conditions are “bad” decreasing from 18.9 percent to 16.8 percent. Consumers were also much more positive in their assessment of the job market. Those stating jobs are “plentiful” increased from 17.2 percent to 20.5 percent. Those claiming jobs are “hard to get” decreased from 27.3 percent to 25.7 percent.
Consumers’ optimism about the short-term outlook improved in January. The percentage of consumers expecting business conditions to improve over the next six months rose from 17.8 percent to 18.4 percent, while those expecting business conditions to worsen declined from 9.9 percent to 7.7 percent.