Default Data After the Great Recession

first_imgSign up for DS News Daily Tagged with: default Great Recession GSEs HAMP Housing Bubble JPMorgan Chase mortgage mortgage modification Default Data After the Great Recession Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The collapse of the housing bubble and the Great Recession that followed left many mortgage borrowers deep “underwater,” owing more on their mortgage than it was actually worth. With many losing their jobs and struggling to keep their homes, it’s no surprise that delinquency rates on residential mortgages increased sharply during the years after the collapse. Now a new JPMorgan Chase report analyzes the various mortgage modification programs that were instituted to help mitigate the damages of the financial crisis, and what they meant for the borrowers who made use of them.JPMorgan Chase’s report sampled from 1 million Chase mortgage customers who received a modification, creating a data asset of 450,000 de-identified modification recipients. Those spotlighted borrowers all fit three criteria: 1) they received a modification from the Federal Government’s Home Affordable Modification Program (HAMP), one of the GSEs, or a Chase proprietary modification program; 2) the modification happened between July 2009 and June 2015; and 3) it was their first mortgage modification.Chase found that “borrowers with similar payment burdens (as measured by pre-modification mortgage payment-to-income ratio, or PTI) received considerably different payment reductions depending on the modification they received.” Borrowers with a mortgage PTI above 50 percent doubled the amount of payment reduction they received from HAMP as opposed to the GSE program—a -55 percent HAMP reduction versus -27 percent under the GSEs. On the other end of the spectrum, borrowers with a low mortgage PTI benefited much less from HAMP. The GSE program granted a -25 percent payment reduction for these borrowers, compared to only -8 percent for HAMP.According to Chase’s report, a little can go a long way: the report found that a mortgage payment deduction of only 10 percent could decrease the default rate by 22 percent. The report also discovered that most defaults by “underwater” borrowers were likely not “strategic defaults”—in other words, the borrowers weren’t realizing they were underwater and deciding simply to try and cut their losses. “There was no difference between the post-modification default rates of borrowers who received principal plus payment reduction and borrowers who received only payment reduction,” according to Chase.Instead, by far the driving factor for defaults was found to be sudden income loss. Chase report found a pattern of drops in income being followed closely by a default. That’s not surprising, but it does further clarify why many borrowers wind up defaulting. Chase’s report says, “This pattern held regardless of pre-modification mortgage PTI or loan-to-value (LTV) ratio, suggesting that it was an income shock rather than a high payment burden or negative home equity that triggered default.Chase also found that underwater borrowers didn’t change their consumption habits whether they received a mortgage principal reduction or not. “There was no difference in the post-modification credit card spending of borrowers who received principal plus payment reduction and borrowers who received only payment reduction relative to their spending 12 months before modification,” said Chase.You can read the full JPMorgan Chase report by clicking here. Share Save Home / Daily Dose / Default Data After the Great Recession Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: David Wharton The Best Markets For Residential Property Investors 2 days ago David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected]  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago December 6, 2017 2,435 Views Related Articles in Daily Dose, Featured, Foreclosure, Government, Journal, News Previous: LGBT and Mortgage Leaders Collaborate to Better Diversity and Inclusion Next: Breaking Down Non-Performing Loan Sales Servicers Navigate the Post-Pandemic World 2 days ago default Great Recession GSEs HAMP Housing Bubble JPMorgan Chase mortgage mortgage modification 2017-12-06 David Whartonlast_img read more

Dodgers rookie pitcher Dennis Santana to DL with right rotator cuff strain

first_img Whicker: Dustin May yet another example of the Dodgers’ eye for pitching When asked by a reporter where he felt sore, Santana lifted his right arm gradually and pointed to an area below his right armpit. He wore the sling was a protective measure, he said.Before Santana could make his first major-league start against the Pirates on Thursday in Pittsburgh, he was scratched after reporting soreness in the last muscle in his right arm while warming up in the bullpen.He made his major-league debut June 1 in an 11-8 victory over the Colorado Rockies in Denver, called up to replace an injured Kenta Maeda. Over 3-2/3 innings in relief, the right-hander surrendered five earned runs on six hits. He struck out four batters and walked one.His stint turned out to be short-lived. The team did not say if surgery might ultimately be required. St. Louis Cardinals prospect Alex Reyes underwent surgery earlier this week to repair a torn lat muscle in his right arm.Sign up for our Inside the Dodgers newsletter. Be the best Dodger fan you can be by getting daily intel on your favorite team. Subscribe here.In corresponding moves, the Dodgers recalled Adam Liberatore and Pat Venditte from Triple-A Oklahoma City. While Santana was sent to the DL, pitcher Brock Stewart was optioned. Dodgers’ hot-hitting Corey Seager leaves game with back injury Dodgers’ Justin Turner looking rejuvenated on defense LOS ANGELES — Dennis Santana walked into the home clubhouse at Dodger Stadium on Friday afternoon, five hours before first pitch, with his right arm in a sling.It was not an encouraging sign for the rookie starting pitcher.Santana, one of the Dodgers’ prized prospects, was headed to the 10-day disabled list with a right rotator cuff strain. The severity of the injury was not known following an MRI earlier Friday, according to Manager Dave Roberts, but could sideline him for weeks. The injury was subject to further evaluation. It was initially described as a torn lat muscle.“Right now, I just feel a little tight,” Santana said through an interpreter. Dodgers bench slumping Cody Bellinger for a day Left-handed reliever Tony Cingrani, who was placed on the DL on Thursday, also underwent an MRI on Friday, revealing a strained rotator cuff.TURNER OUT OF LINEUPThird baseman Justin Turner was not in the Dodgers’ lineup Friday against Atlanta, the second consecutive game he missed. He could miss additional games “the next couple months” due to discomfort from the fractured wrist he suffered during spring practice, Roberts said.Turner could return to the lineup later this weekend, but his availability likely hinges on his comfort level.“There’s some pain,” Roberts said. “How sharp it is? I can’t really speak to it. For right now, for the next couple months, it’s kind of a new normal for him. That’s just kind of what it is. To expect him to be pain-free for the next couple months is probably not going to happen. So how can we keep it so that it’s tolerable?Since debuting in mid-May, Turner has hit .243 with one home run and 10 RBIs.Roberts noticed Turner’s swing was off earlier this week.“For him to not be able to release the barrel with his bottom hand, and do the one-hand finish that we’re accustomed to seeing from him,” Roberts said. “So I had a conversation with him, and he acknowledged that it was kind of limiting.”Roberts said Turner felt better after not taking batting practice Friday and would play Sunday, if not Saturday.ROTATION HELPTwo of the Dodgers’ starting pitchers appear closer to returning.Rich Hill, who is on the DL with a blister on his left middle finger, plans to throw a four-inning simulated game on Saturday.Hill said he hopes to be activated next week. He said he has been receiving up to nine laser treatments per day for his blister, accelerating his recovery.Kenta Maeda, who is out with a right hip strain, threw a 40-pitch bullpen session on Friday.Roberts, who described Maeda’s bullpen as “aggressive,” said he thinks the right-hander could be back next week.ALSOClayton Kershaw, out with a back injury, is symptom-free and played catch Friday, Roberts said.UP NEXTBraves (RHP Anibal Sanchez, 1-0, 2.16 ERA) at Dodgers (LHP Alex Wood, 1-4, 4.48 ERA), Saturday, 6:10 p.m., SportsNet LA (where available)Related Articles Dodgers’ Dave Roberts says baseball’s unwritten rules ‘have changed, should change’ Newsroom GuidelinesNews TipsContact UsReport an Errorlast_img read more