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U.S. Foreclosure Activity Increases Slightly in May 2022

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Foreclosure Starts Decrease 1 Percent from Last Month, While Completed Foreclosures Increase 1 Percent ATTOM, a leading curator of real estate data nationwide for land and property data, released its May 2022 U.S. Foreclosure Market Report, which shows there were a total of 30,881 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 1 percent from a month ago but up 185 percent from a year ago. Illinois, New Jersey and Delaware had the highest foreclosure rates Nationwide one in every 4,549 housing units had a foreclosure filing in May 2022. States with the highest foreclosure rates were Illinois (one in every 2,000 housing units with a foreclosure filing); New Jersey (one in every 2,346 housing units); Delaware (one in every 2,426 housing units); Ohio (one in every 2,667 housing units); and Florida (one in every 2,788 housing units). “While there’s some volatility in the monthly numbers, foreclosure activity overall is continuing its slow, steady climb back to normal after two years of government intervention led to historically low levels of defaults,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “But with inflation now at a 41-year high, and runaway prices on necessities like food and gasoline, we may see foreclosure activity ramp up a little faster than most forecasts suggest.” Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in May 2022 were Jacksonville, NC (one in every 1,052 housing units with a foreclosure filing); Cleveland, OH (one in every 1,389 housing units); Chicago, IL (one in every 1,777 housing units); Fayetteville, NC (one in every 1,823 housing units); and Rockford, IL (one in every 1,861 housing units). Those metropolitan areas with a population greater than 1 million, with the worst foreclosure rates in May 2022 including Cleveland, OH and Chicago, IL were: Jacksonville, FL (one in every 1,985 housing units); Orlando, FL (one in every 2,295 housing units); and Miami, FL (one in every 2,432 housing units). Florida, California and Texas had the greatest number of foreclosure starts Lenders started the foreclosure process on 22,099 U.S. properties in May 2022, down 1 percent from last month but up 274 percent from a year ago. States that had the greatest number of foreclosure starts in May 2022 included: Florida (2,483 foreclosure starts); California (2,238 foreclosure starts); Texas (2,019 foreclosure starts); Illinois (1,757 foreclosure starts); and Ohio (1,285 foreclosure starts). Those major metropolitan areas with a population greater than 1 million and that had at least 100 foreclosure starts in May 2022 and saw increases from last month included: Miami, FL (up 81 percent); Washington, DC (up 60 percent); Birmingham, AL (up 56 percent); Cincinnati, OH (up 54 percent); and Jacksonville, FL (up 54 percent). “It’s interesting that there were almost ten times more foreclosure starts than foreclosure completions,” Sharga added. “This suggests that financially-distressed borrowers may be finding ways to avoid losing their home to a foreclosure sale.” Foreclosure completion numbers increase 1 percent from last month Lenders repossessed 2,857 U.S. properties through completed foreclosures (REOs) in May 2022, up 1 percent from last month and up 117 percent from last year. States that had the greatest number of REOs in May 2022, included: Illinois (350 REOs); Michigan (249 REOs); Pennsylvania (226 REOs); New Jersey (175 REOs); and Ohio (146 REOs). Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in May 2022 included: Chicago, IL (289 REOs); New York, NY (133 REOs); Detroit, MI (124 REOs); Philadelphia, PA (98 REOs); and Pittsburgh, PA (79 REOs). About ATTOM ATTOM provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 20TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, property reports and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.

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Hippo 2022 Homeowner Preparedness Report

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Inflation and Supply Chain Shortages May Be Holding Homeowners Back From Critical Home Maintenance Hippo, the home insurance group focused on proactive protection, announced findings from its 2022 Homeowner Preparedness Report, revealing the effect of today’s economic climate on homeowners as they deal with the responsibilities that come with owning a home. According to the national survey of nearly 2,000 U.S. homeowners and renters, owning a home is still a critical part of achieving their life goals, but it may come at a cost for those who lack a clear understanding of homeownership responsibilities. With national inflation rates reaching a high of 8.5 percent already this year, homeowners today have been more hesitant than in previous years to complete important home maintenance projects, with more than half of first-time homeowners (51%) putting them off due to inflation and price increases, and just one in five homeowners (20%) setting aside money or creating a budget to pay for home upgrades or maintenance. In addition to heightened financial pressures, nearly a third of homeowners (31%) surveyed say they have experienced unexpected repairs to their home in the past year that were caused by severe weather or climate-related issues. With growing financial and climate uncertainty, establishing a preventative home care routine for homeowners to tackle smaller issues before they become costly repairs is more important than ever. “As homeowners navigate their daily responsibilities, proactive home maintenance shouldn’t be an afterthought. Instead, it should be met with a sense of confidence and accomplishment in protecting what many Americans consider their most important financial asset,” said Rick McCathron, CEO of Hippo. “There’s no denying there are an increasing number of external factors affecting homeowners today. At Hippo Insurance Services, we review policies annually to ensure customers have the right amount of coverage within the current economic environment, and partner with homeowners to proactively protect their homes by offering them the tools they need to succeed.” Report Key Findings: For homeowners, owning a home remains critical to obtaining the American dream Despite repair needs and external pressures, homeowners maintain their joy of homeownership and view it to be a key to happiness. 70% of homeowners find homeownership to be an important part of the American dream; with nearly three-quarters (74%) agreeing it is a key to happiness Two-thirds of renters (66%) who are likely to purchase a home in the next year agree homeownership is a key to happiness Nearly half of younger homeowners (Gen Z and Millennial) (46%) are driven by their desire to become a homeowner and the vast majority (66%) agree homeownership is an important part of the American dream Nearly all homeowners (90%) report a sense of happiness when it comes to owning their home, compared to just one-third of renters (31%) who feel a sense of happiness when it comes to renting their home Homeowners have big dreams of wanting to take on more responsibility, yet a lack of education stands in the way Although eager to stay on top of home maintenance, one in three homeowners (31%) put off repairs or upgrades, mainly due to limited knowledge and time. Nearly all of homeowners (94%) say they would rather take action on smaller repairs now to save big on costs later—especially first-time homeowners However, one-third of homeowners (31%) wait until something breaks in their home, and of those homeowners, 28% say they wait because of a lack of knowledge around home maintenance, while 27% say they don’t have time to regularly check that things are working Three in five homeowners (60%) have paid an average of nearly $4,000 in unexpected repairs in the past year Among homeowners, just 20% say they have a budget or regularly set aside money for home maintenance External pressures bring about new challenges for homeowners when it comes to responsible home care and maintenance For first-time and recent homeowners alike, inflation and supply chain issues could be getting in the way of their home care, while all homeowners face climate-related pressures. Two in five homeowners (43%) have not moved forward with or planned home maintenance or improvement projects due to inflation More than half of first-time homeowners (51%) say inflation and price increases have kept them from doing planned home maintenance or improvements over the past few months More than one-third of homeowners (39%) say supply chain issues and shortages have hindered their planned home maintenance projects Nearly half of new homeowners (47%), those who purchased their home post-pandemic (after 2020), cite supply chain issues and shortages hindering their home project plans One in three homeowners (31%) have experienced damage to their home caused by severe weather or climate-related issues Owning a home has long been part of the American dream and as seen through the report results, continues to be today for many aspiring and current homeowners. As homeowners face new challenges in proactively protecting their homes, having a partner in their home’s protection is essential. Hippo takes a proactive approach to homeownership by offering services and tools focused on preventative care that help customers reduce risks, including smart home devices and preventive home maintenance support, along with seasonal home care tips and advice. Hippo provides a level of support and care that helps homeowners to live their best lives in their homes. To learn more about the report and findings, please visit the 2022 Homeowner Preparedness Report here.

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WORD OF THE DAY: Coterie

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[kō-tə-(ˌ)rē] Part of speech: noun Origin: French, 18th century Definition: a tightly knit group of people with a common interest or goal; an inner circle that excludes outsiders. Examples of Coterie in a sentence “She was always walking with her coterie of close friends, which made talking to her alone impossible.” “I tried joining the club, but it was really more of a coterie considering they rejected my application outright.” About Coterie It’s no wonder that farmers in 18th century feudal Europe wanted to form a coterie to protect their rights. Over 90% of the total population at the time worked in the field, and they were so overworked and underfed that most died by age 30. It didn’t help that kings and lords considered themselves designated as rulers by God himself. Did you Know? Farmers in 18th century France would sometimes get together and form an organization, or cotier. That means coiteries were essentially the world’s first workers’ unions.

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Redfin Reports Typical U.S. Asking Rent Surpassed $2,000 for First Time in May

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Asking rents were up over 30% in Cincinnati, Seattle, and Nashville and nearly 50% in Austin The median monthly asking rent in the U.S. surpassed $2,000 for the first time in May, rising 15% year over year to a record high of $2,002, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s on par with April’s annual increase of 15%, but a slowdown from March’s 17% gain. “More people are opting to live alone, and rising mortgage-interest rates are forcing would-be homebuyers to keep renting,” said Redfin deputy chief economist Taylor Marr. “These are among the demand-side pressures keeping rents sky-high. While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes. Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters.” Rents Up Over 30% in Austin, Nashville, Seattle and Cincinnati Asking rents surged 48% year over year in Austin, TX—the largest increase on record in any metro area since at least the beginning of Redfin’s rental data in 2019. Nashville, TN, Seattle, and Cincinnati also saw asking rents increase over 30% from a year earlier. Rent growth in Portland, OR (24%) fell below 30% for the first time since the start of the year, causing it to drop out of the top 10. Top 10 Metro Areas With Fastest-Rising Rents Year Over Year Austin, TX (48%) Nashville, TN (32%) Seattle, WA (32%) Cincinnati, OH (32%) Miami, FL (29%) Fort Lauderdale, FL (29%) West Palm Beach, FL (29%) New York, NY (24%) Nassau County, NY (24%) New Brunswick, NJ (24%) Just three of the 50 most populous metro areas saw rents fall in May from a year earlier. Rents declined 10% in Milwaukee and 3% in Kansas City, MO and Minneapolis. The same three metro areas saw rents decline in April as well. Metro Areas Where Rents Declined Year Over Year Milwaukee, WI (-10%) Kansas City, MO (-3%) Minneapolis, MN (-3%) To read the full report, including charts, additional data and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-may-2022/

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MORTGAGE LENDING PLUMMETS ACROSS U.S. IN FIRST QUARTER

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Overall Residential Lending Activity Down Annually by 32 Percent, Marking Fastest Decline in Eight Years;  Number of New Loans Decreases for Fourth Straight Quarter;  Refinance Lending Drops Another 22 Percent While Purchase Mortgages Dip 18 Percent ATTOM, a leading curator of real estate data nationwide for land and property data,  released its first-quarter 2022 U.S. Residential Property Mortgage Origination Report, which shows that 2.71 million mortgages secured by residential property (1 to 4 units) were originated in the first quarter of 2022 in the United States. That figure was down 18 percent from the fourth quarter of 2021 – the largest quarterly decrease since 2017 – and down 32 percent from the first quarter of 2021 – the biggest annual drop since 2014. The decline, which marked the fourth straight quarterly decrease, resulted from double-digit downturns in purchase and refinance activity, even as home-equity lending rose. Overall, lenders issued $892.4 billion worth of mortgages in the first quarter of 2022. That was down quarterly by 17 percent and annually by 27 percent. As with the number of loans, the quarterly and annual decreases in the dollar volume of loans were the largest in five and eight years, respectively. The biggest contributor to the downturn was a decrease in refinance deals. Just 1.45 million residential loans were rolled over into new mortgages during the first quarter of 2022, down 22 percent from the fourth quarter of 2021 and 46 percent from a year earlier. Amid rising mortgage interest rates, the number of refinance mortgages decreased for the fourth straight quarter while the annual drop was the largest since 2014. The dollar volume of refinance loans was down 20 percent from the prior quarter and 42 percent annually, to $470.7 billion. Refinancing, while still a majority of residential lending activity, also decreased again as a portion of all loans during the first quarter of 2022. They represented 53 percent of all first-quarter mortgages, down from 56 percent in the fourth quarter of 2021 and 67 percent in the first quarter of 2021. “The drop-off in Q1 refinancing activity is no surprise with mortgage rates rising as rapidly as they have,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “But many forecasts expected purchase loans to remain strong in 2022, and even increase in both the number of loans originated and the dollar volume of those loans. The weakness in purchase loan activity shows just how much of an impact the combination of escalating home prices and rising interest rates have had on borrower activity this year.” Purchase-loan activity shrank in the first quarter of 2022 as lenders issued 1.01 million mortgages to buyers. That tally was down 18 percent quarterly and 12 percent annually. The dollar value of loans taken out to buy residential properties dipped to $371.3 billion, down 16 percent from the fourth quarter of last year and 1 percent from the first quarter of 2021. Despite those decreases, purchase loans remained at 37 percent of all loans in the first quarter of 2022 and were still up annually from 29 percent. In the one category that bucked the trend, home-equity lending went up 6 percent quarterly and 28 percent annually, to 249,900. So-called HELOC mortgages represented 9 percent of all first-quarter residential loans, up from 7 percent in the fourth quarter of 2021 and 5 percent in the first quarter of last year. The continued shrinkage in overall residential lending during the first quarter reinforced a stark reversal for the mortgage industry following a near-tripling of activity from early 2019 through early 2021. The first-quarter figures come amid multiple forces that threaten to continue the recent trends, including 30-year mortgage rates that have risen past 5 percent this year, an ongoing tight supply of homes for sale around the country that limits the number of home purchases, rising inflation and other uncertainties surrounding the U.S. economy. They also add to a list of indicators showing that the nation’s decade-long housing market boom may be cooling off, including slower price growth, smaller home-seller profits and declining home affordability. Total mortgages drop at fastest pace in five yearsBanks and other lenders issued 2,708,492 residential mortgages in the first quarter of 2022. That was down 18.4 percent from 3,320,689 in the fourth quarter of 2021 and down 32.5 percent from 4,011,939 in the first quarter of 2021. The quarterly decline was the largest since the first quarter of 2017, while the annual decrease was the biggest since the second quarter of 2014. The $892.4 billion dollar volume of loans in the first quarter was down 17.1 percent from $1.08 trillion in the prior quarter and was 27.3 percent less than the $1.23 trillion lent in the first quarter of 2021. Overall lending activity decreased from the fourth quarter of 2021 to the first quarter of 2022 in 213, or 99 percent, of the 216 metropolitan statistical areas around the U.S. with a population of more than 200,000 and at least 1,000 total residential mortgages issued in the first quarter of 2022. Total lending activity was down at least 10 percent in 183 metros (85 percent) and by at least 20 percent in 90 metros (42 percent). The largest quarterly decreases were in Huntsville, AL (down 62 percent); St. Louis, MO (down 52.2 percent); Augusta, GA (down 40.8 percent); Montgomery, AL (down 37.4 percent) and Des Moines, IA (down 35.8 percent). Aside from St. Louis, metro areas with a population of least 1 million that had the biggest decreases in total loans from the fourth quarter of 2021 to the first quarter of 2022 were San Jose, CA (down 34.1 percent); Boston, MA (down 31.5 percent); Minneapolis, MN (down 30.4 percent) and Rochester, NY (down 29.6 percent). The only metro areas with increases in the total number of mortgages from the fourth quarter to the first quarter were Philadelphia, PA (up 11.4 percent); Laredo, TX (up 9 percent) and Sioux Falls, SD (up 7.6 percent). Refinance mortgage originations down 22 percent from fourth quarterLenders issued 1,446,622 residential refinance mortgages in the first quarter of 2022, down 21.7 percent from 1,846,450 in fourth quarter of 2021 and down 45.8 percent from 2,670,304 in the first quarter of 2021. The total was down

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WORD OF THE DAY: Adhocracy

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[ad-HOC-rə-see] Part of speech: Noun Origin: Latin, 20th century Definition: A flexible, adaptable, and informal organizational structure without bureaucratic policies or procedures. Examples of Adhocracy in a sentence “The council was formed as an adhocracy so everyone felt comfortable contributing.” “The Star Trek crew came across an alien civilization that operates as a successful adhocracy.” About Adhocracy This word, created in the 1960s, is a combination of the Latin phrase “ad hoc” (meaning something created for a specific purpose) and “bureaucracy,” a system where elected officials make decisions. Your book club is likely an adhocracy — it was created for the purpose of discussing the latest novels, but it’s a loose structure without a lot of rules. Did you Know? If you’ve ever been a part of a group or a project with loose rules and regulations, or one that is generally informal, that’s an adhocracy. If you think it sounds too good to be true, it’s no surprise that adhocracies feature in many a science fiction fantasy.

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