The risk of price declines over the next two years has risen in 48 of the nation's 50 largest housing markets, but the rate of appreciation has slowed in 21 of the markets, according to PMI Mortgage Insurance Co., Walnut Creek, Calif.The average score in the PMI U.S. Market Risk Index rose from 261 to 287, the company reported. This means the company's estimate of the probability of experiencing a home price decline in the next two years has risen from 26.1% to 28.7% in the 50 largest metropolitan statistical areas. According to the index, there are now 14 markets with a greater than 50% chance of price declines over two years, up from 11 in the fourth quarter. PMI also reported the results of a study of the value of homeownership from 1986 through 2005. "What we found was that across the nation's 50 largest MSAs, owning a home for 10 years or more resulted in a positive return in 100% of the cases," said Mark Milner, chief risk officer of PMI Mortgage Insurance. "This dropped to 95% with a seven-year ownership term and to 92% with a five-year ownership term -- still a pretty impressive rate." PMI can be found online at http://www.pmigroup.com.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
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A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
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The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
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The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
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