Leading the Way Toward Gender Equality

Page10a

On a stormy Thursday in January I had the honor of attending a meeting at the Dutch Ministry of Education, Culture and Science on the financial position of women in the European Union (EU). Experts and policy makers from 14 EU Member States gathered in The Hague to talk about the economic independence of women in their respective countries.

In the Netherlands, but also in other EU countries, we see more and more women obtaining degrees in higher education and finishing their degrees faster than men. However, this educational outperformance is not reflected in our current labor market. The Netherlands Institute for Social Research has conducted research at the request of the Emancipation Department of the Dutch Ministry of Education, Culture and Science that focuses on the early career phase of young women and men in the Netherlands. The first steps young professionals take in the labor market can be instrumental to the trajectory of their careers and possibily offer an explanation for the current position of women in the workforce.

The study conducted by the Netherlands Institute for Social Research shows that in the first 18 months after obtaining a degree, there are no significant differences between young women and men in regards to becoming employed. However, what is significant is that in the 18-26 age group, working women are less often working full-time than men. The differences are striking with just under 40 percent of women working full-time, compared to 70 percent of men.

Continue reading

Reducing Losses on FHA Defaulted Loans

Page9a

Servicing FHA Loans continues to be challenging and, in many instances, includes high losses on default liquidated loans. While FHA delinquencies have greatly improved compared to post crisis delinquency, there are still over 7.8 million outstanding FHA insured loans with delinquency rates that rose as high as 11.25 percent according to the FHA Single Family Loan Performance Trends report published by HUD this past January.

When working with FHA Loans in default, there are many key time frames that must be met in order to minimize losses, beginning as soon as the date the loan was last contractually current, and continuing throughout the claim filing process. In many cases just missing the start of a foreclosure action by one day can result in increased losses of thousands of dollars. Failure to meet all time frames will not only result in interest curtailments, but ultimately the curtailment of advances as well. These losses can be further exacerbated depending on the type of pool, the Servicer’s ability to limit interest rate spreads, and time required to resolve. Additionally, if there was a missed time frame, FHA will only pay debenture interest to the point of the interest curtailment. After the interest curtailment, HUD will no longer pay debenture interest on the Unpaid Principle Balance.

To put things in perspective, if an FHA loan has an Unpaid Principle Balance of $150,000 with an interest rate of 3.5 percent, and you miss the first legal action for foreclosure, and it takes an additional 24 months to convey, the Servicer stands to lose $10,500 in interest alone. In addition to interest curtailments, the Servicer must fully comply with the allowable fee schedule for all legal actions and property preservation expenses. Overhead costs as well as any fees or costs associated with clearing title issues are not reimbursable or recoverable through a claim to HUD.

Continue reading

Increase Your Sales as a Renovation Realtor

Recently, the National Association of REALTORS® (NAR) reported that the highest home buying demand in years is being stifled by tight inventory. In this article, I will demonstrate how you can increase your available inventory by embracing homes in need of renovation.

If you are already using renovation loans as a tool to sell more of your listings or to find homes for your prospective buyers, congratulations, you are reaping the benefits of these creative and game-changing loan programs. If not, 2017 may be your year to explore adding a renovation loan strategy to your business plan and increase inventory and sales.

Before we discuss an implementation strategy for using renovation loans, let’s first define what a renovation loan is and the specific loan programs that are available.

What is a renovation loan?

A renovation loan, simply, is a loan that is based on the “after-improved value” of a property where the improvements will be made after the closing. The after-improved value is established by the appraiser, who is given the plans and specifications for all repairs, improvements and additions to the property. Virtually any improvements a buyer could need or want to make are allowed, as long as it is attached to the property and adds value.

The loan-to-value is based on the lesser of the after-improved appraised value or the acquisition cost plus the amount of the renovations. At closing, the funds for planned improvements are deposited into an escrow account that will be disbursed upon inspection of and completion of the work. The project period is typically limited to six months or less.

The two most commonly used renovation loan programs are the FHA 203(k) Rehabilitation Mortgage and the Fannie Mae HomeStyle Renovation Mortgage. Both programs offer fixed-rate financing with terms up to 30 years.
When determining which program is best for your clients, you should look at their credit profile and required loan amount first. The FHA program typically has lower credit score requirements and the Fannie Mae program offers high balance loans.

As with non-renovation loans, FHA requires a 3.5 percent down payment and Fannie Mae requires a 5 percent down payment, making renovation financing a viable option for the first-time homebuyer.
Continue reading

Hispanics: College Enrollment Leading to Homeownership

Untitled design (1)

The Pew Research Center reports that the college enrollment rate of Hispanics continues to rise and their dropout rate has fallen to a new low. Analyzing Census Bureau data, Pew found that in 2016, the Hispanic high school dropout rate decreased to 10 percent from 16 percent just five years earlier; and Hispanic high school graduates’ enrollment in college reached 47 percent in 2016, a marked increase from 32 percent in 1999.

Continue reading

Desirée Patno, NAWRB CEO & President, Receives Walker’s Legacy Power25 Award

Blog_Award2_OCT2017

Walker’s Legacy—a global platform for the professional and entrepreneurial multicultural woman—has awarded Desirée Patno, NAWRB CEO & President, the Power25 Award which recognizes “women who have thrived in an array of industries including technology, media, corporate, business, and education.”

Continue reading

SBA Names 2017 InnovateHER Business Challenge Finalists!

InnovateHer2017

The U.S. Small Business Administration (SBA) has announced the finalists of the 2017 InnovateHER Business Challenge; a competition giving entrepreneurs across the country the opportunity to showcase their products and services while competing for up to $70,000 in prize money.

Continue reading

Celebrating Women Entrepreneurs during National Women’s Small Business Month

Blog_SmallBusinessMonth

October is National Women’s Small Business Month, dedicated to celebrating the contributions and successes of our nation’s women small business owners. The 10 million women-owned businesses in the U.S. hold tremendous value, generating $1.4 trillion in revenue and employing 8.4 million people, according to the National Women’s Business Council (NWBC).

Continue reading

Learn to Stay Safe Online during National Cyber Security Awareness Month

Blog_CyberSecurity

October is National Cyber Security Awareness Month (NCSAM), an annual campaign dedicated to raising awareness of cyberattacks and the importance of cybersecurity. Launched in October 2004 by the U.S. Department of Homeland Security (DHS) and the National Cyber Security Alliance (NCSA), NCSAM features initiatives and events designed to educate public and private sector partners on the tools and resources required to stay safe online.

Continue reading

Newsletter: New SBA Lending Tool – NAWRB WOSB Award Winners – FHFA Foreclosure Preventions

smallbizloans

NAWRB is the Women’s and Small Business ValidatorCollaboration, Influence, Access and Opportunities (#CIAO). To find out how you can get involved, contact NAWRB at (949) 559-9800 and info@www.nawrb.com or visit www.NAWRB.com.