Reports that the Federal Reserve Bank may be considering a significant interest rate hike in response to a perceived bubble in the commercial real estate market have sparked concern among some analysts. Builders and construction firms across the U.S., however, are expressing cautious optimism and continuing to expand their projects to deliver housing solutions, office space and other commercial real estate solutions for their clients.

Apartment Complexes Singled Out

One issue that may be drawing attention from administrators at the Federal Reserve is the elevated vacancy rate in many newly built urban high-rise apartment buildings. Market analysts are already predicting an increase in commercial delinquencies of more than two percent for 2017. This has prompted a tighter hold on the purse strings by lenders and the Federal Reserve alike.

Putting Plans on Hold

Some major developers have already pulled out of potentially lucrative deals to prevent these predicted losses. In most parts of the country, however, an uptick in demand for commercial real estate is continuing to bolster the economic recovery and is providing added jobs and profitability for savvy builders.

Moving Ahead with Optimism

Even if the Federal Reserve does opt to increase mortgage interest rates, most builders will see minimal change in their business model and will likely experienced increased demand for their services in the current economic environment. Acuity National Real Estate Solutions can help with the most advanced solutions for managing lending arrangements, investments, buyers, sellers and brokers in the modern real estate industry.

Commercial Real Estate Services from Acuity

To learn more about the full line of commercial real estate services offered by Acuity National Real Estate Solutions,?visit us online?or give us a call at 502-238-7500. We are here to serve you!

We live in an age where success in real estate is always tempered by caution. Fear of the next housing bubble is palpable. That?s an enduring legacy of the last housing crisis, and it may stay that way for some time. What this cautious optimism doesn?t give us is a real picture of the health of different housing markets.

A recent article in HousingWire pondered: ?Housing in the state of Texas was hotter in 2016 that it?s ever been before, but is real estate in the Lone Star state getting too hot?? The author then goes on to note that home prices in multiple markets ? Dallas, Las Vegas, Phoenix, Portland, Atlanta, Los Angeles, Miami, San Francisco, and Tampa ? are rising too quickly and are exceeding the supporting economic fundamentals.

What is a Housing Bubble, again?

But here?s the thing: overpriced homes aren?t the hallmark sign of a housing bubble. The definition of a bubble is when people drive up prices simply because they expect the price will continue rising indefinitely. With that logic, no price is too high.

But here, in our reality of 2017, supply and demand are the driving forces at work, and that?s economics 101. Plus, debt is still well below the peak of the 2006 bubble. What economists do expect is a rebalancing of the market. Home prices will slow their gains in some areas, while values will decline slightly in others. Statistically, we are due for a recession. But not for a great recession.

Title Services for Today?s Market

Acuity National Real Estate Solutions is a national title agency offering cutting-edge tools to help lenders reduce cost, streamline closings and increase compliance. For more information, please visit our homepage today!

Commercial mortgages could be the next wave of delinquencies and foreclosures in the real estate market. An article published in Bloomberg in January 2017 estimates that about $90 billion in debt will come due in the next year. Much of this debt was created during the 2007 real estate boom and will need to be refinanced or otherwise dealt with by companies across the U.S.

Retail Properties Likely to Be Hardest Hit

The waning popularity of shopping malls and reduced interest by anchor companies has led to the failure of many of these large-scale retail properties nationwide. A number of retail properties are simply failing to generate the expected income. This can make it difficult for property owners to manage the costs of these retail sites and may lead to delinquency even before these loans mature.

Refinancing Harder to Find

The reduced profitability of commercial property combined with the tighter money market have made it more difficult for borrowers to refinance their current loans. If refinancing arrangements can not be found, commercial property owners may be left with no alternative to delinquency, default and foreclosure.

Prices May Be on Their Way Down

The expected increase in commercial foreclosures will present new opportunities for investors in this sector. Businesses looking for additional space for their operations and companies eager to get in on the ground floor of new retail expansions may find bargains in the commercial real estate marketplace. This will likely lead to increased demand for commercial title searches and closing services in the upcoming year.

National Title Insurance and Search Solutions from Acuity

The title insurance and title search specialists at Acuity National Real Estate Solutions can provide cutting-edge solutions for real estate agents and lenders to ensure the smoothest transfer of property. We handle escrow funds and closings to help you manage your sales more effectively. Call us today at 502-238-7500 to discuss your needs with one of our professional staff members. We look forward to working with you.

Foreclosure inventories are still in decline across the U.S. According to the CoreLogic National Foreclosure Report for November 2016, the number of foreclosures available in the real estate market went down more than 25 percent between November 2015 and November 2016. This points to a recovery in the housing market and an overall improvement for the economy as a whole.

Less than One Percent of Homes in Foreclosure Inventory

The November 2016 figures indicate that 325,000 foreclosed homes were available in the real estate market at that time, which represents less than one percent of all homes in the U.S. In November 2015, approximately 1.2 percent of all homes were considered to be foreclosure inventory and available for purchase.

Defaults and Delinquencies in Decline

As the inventory of foreclosed homes continues to fall, the number of new serious delinquencies and defaults has also decreased nationwide. The National Foreclosure Report indicated that about 2.5 percent of all mortgages were in serious delinquency or default status in November 2016, the lowest number since the start of the subprime mortgage crisis in August 2007.

Some States Hit Harder than Others

For the 12-month period covered by the CoreLogic report, Florida reported the highest number of foreclosures at approximately 48,000. Michigan, Texas, Ohio and Georgia rounded out the top five states in terms of completed foreclosure proceedings. The District of Columbia reported the fewest at 221 total completed foreclosures.

Home Prices on the Rise

CoreLogic also indicated that the overall value of homes is continuing to rise. This appreciation is providing added support for the economy and allowing homeowners to enjoy greater flexibility in managing their financial affairs, making future foreclosures less likely.

The experts at Acuity National Real Estate Solutions can provide professional title services to help clients close on their properties more quickly. We have the experience and the expertise to manage your transactions accurately and to your precise requirements. Visit our homepage or contact us today at 502-238-7500 to learn more about our full lineup of services and to schedule a consultation with our team. We look forward to the chance to serve your residential and commercial real estate needs.

Qualifying for a mortgage can be a challenging proposition for some borrowers. Lenders consider a wide range of factors when determining eligibility for mortgages. Here are five of the most common mistakes made by borrowers when seeking a mortgage in the financial marketplace.

Taking on New Debt

Most financial experts recommend that mortgage applicants avoid taking on new credit cards or loan arrangements during the lead-up to the process. New debt can complicate the calculations of the lender and may cause delays or denials for mortgage applicants.

Incurring Overdrafts and Insufficient Funds

Excessive overdraft and insufficient funds fees can serve as a warning sign for lenders that the borrower is less than responsible in his or her financial matters. This can add up to an unfavorable picture for the lending institution and a denial for the borrower.

Failing to File Income Tax Returns

Income tax returns are among the most common tools used by lenders to verify the financial means of mortgage applicants. Failing to file these documents in a timely fashion can add up to real trouble for borrowers and may result in significant delays in processing the mortgage paperwork. In some cases, borrowers may be denied outright due to their failure to file tax returns and documentation in a timely manner.

Overlooking Payments

Failing to pay small medical or credit card bills can sometimes serve as a warning sign to banks and lending institutions that a borrower is not a good prospect for a mortgage arrangements. Most lenders will, at a minimum, require the borrower to pay off any outstanding charges and bills at the time of closing. Some will deny the application based on repeated failure to pay bills on time.

Changing Employment Status

Borrowers who move from one employer to another may experience minor delays or issues when seeking a mortgage. For those who move to self-employment from salaried or hourly positions, however, the lack of stability and security associated with this status may create roadblocks to acquiring a mortgage successfully.

At Acuity National Real Estate Solutions, we offer a full array of closing and title solutions designed to help lenders, borrowers and agents achieve their real estate goals. Give us a call at 502-238-7500 to discuss your situation with one of our expert representatives. We are ready to serve all your real estate title needs. Visit our homepage today!

Have you taken stock of what went well in 2016 and what areas need improvement? Have you set an agenda for 2017, creating clearly defined goals? If so, Acuity National Real Estate Solutions is a national title agency that can help you achieve them.

A National Title Agency Streamlining Any Transaction, Anywhere

Acuity National Real Estate Solutions is an attorney-owned, client-focused national title agency that wants to help you succeed in 2017. We automate labor-intensive steps to streamline turnaround times and reduce the number of vendors you have to work with by providing:

• ? Residential and Commercial Transactions
• ? Title Clearance
• ? Lien Release Processing
• ? Document Recording and Retrieval
• ? Property document preparation
• ? E-recording

Efficient, Individualized Service

We provide individualized service without every sacrificing quality or efficiency, and we?ve achieved this by providing:

• ? An after-hours closing hotline where you can get actionable advice on your transactions
• ? A 24-hour client portal where you can access, upload, and download files at any time

What?s Your Goal for 2017?

Improve your cash flow? Close more purchase transactions? Better serve your market? Whatever your goals are in 2017, we can help. To learn more about our national title agency and our services, please visit our homepage today!

As we enter the new year, it?s a good time to look at the mortgage origination trends for purchase transactions and refinances. According to the Mortgage Bankers Association?s (MBA) December Mortgage Finance Forecast, total volume for one- to four-family mortgage loan originations is expected to drop in 2017 thanks to higher interest rates and a continually slow refinance market.

Purchase Mortgage Origination Volume

Purchase mortgage origination volume should continue on its upward trend, the MBA reported, thanks to ?strong household formation coupled with further job growth, rising wages, and continuing home price appreciation.? Though purchase origination forecasts for the first quarter were revised down between November and December, the predicted $1.10 trillion in purchase originations for the year would be an 11 percent increase from 2016 and the most since 2007. While purchase mortgage origination volume has risen steadily since 2011, from a low of $500 million to near $1 trillion in 2016, refinance volume has seesawed since the housing crash.

A Short-Lived Refinance Boom

An increase in refinance volume in 2012 was followed by decreases in 2013 and 2014. And despite the ?mini refi boom? of 2016, the MBA predicts that the next several years (2017 ? 2019) will see refinance volume drop steadily from $479 billion in 2017 to $395 billion in 2019. if mortgage rates climb much higher, fewer homeowners will have an incentive to sell their existing home and purchase a new one; roughly two-thirds of existing mortgages sit at a rate of under 4.5%.

How Lenders and Realtors can Plan for the Future

The supply and demand fundamentals of the housing market remains strong. Although mortgage costs may rise, incomes may continue rising as well. Lenders and realtors will have to focus their efforts on an increasing number of Millennials now entering the housing market.
With refinance volume dropping, lenders will have to rely more on purchase transactions, which means partnering with a title agency that simplifies mortgage transactions for all parties involved. As a one-stop solution for real estate transactions of all kinds?no matter the size, complexity, or geographical location of the relevant properties ? Acuity Real Estate Solutions is that title agency.

Partner with Acuity National Real Estate Solutions in 2017

Acuity National Real Estate Solutions is an attorney-owned, client-focused national title agency that is redefining what a title agency can be. By automating labor-intensive steps in mortgage transactions and offering superior customer service, we have become the trusted title partner for high-volume lenders across the country. To learn more about our services, visit our homepage today!

A recent article on Inman featured 8 real estate experts that shared their beliefs about which direction the housing market would take in the coming year. In many ways, 2016 was an unprecedented year. From Brexit to the Chicago Cubs winning the World Series to Donald Trump?s election, 2016 wasn?t short on surprises. Historically low mortgage rates encouraged the strongest home sales in nearly a decade, despite home prices rising nationwide. Will 2017 see more of the same?

Interest Rates and the Economy

Another narrative for 2016 was the Federal Reserve?s waffling on interest rates. In the first half of the year, China?s economy went into a slump, then Brexit happened, and none of the 4 proposed interest rate hikes for the year materialized. Now, however, the Fed is ready to move, with the economy creating an average of 188,000 jobs per month in the last year. Unemployment now stands at 4.6%, the lowest rate recorded since August 2007.

Mortgage Rates

With interest rates set to rise to as much as 4.5% in 2017, mortgage rates will rise as well. Homeowners and prospective buyers in overpriced markets like Miami, San Francisco and Los Angeles are likely to feel the burden of higher rates more than most. The prevailing sentiment is that higher rates ?will dampen both home sales and price increases next year?. Others aren?t convinced.

Home Sales

Amazingly, the National Association of Realtors is predicting existing-home sales to eclipse the 5.8 million forecast for 2016, with 6 million sales predicted for the coming year. The Mortgage Bankers Association, Fannie Mae and Freddie Mac are even more optimistic, predicting 6.5 million and 6.2 million sales, respectively. There?s the downward pressure of higher borrowing costs and the upward pressure of stronger economic growth ? jobs and income ? and the MBA, Fannie Mae and Freddie Mac are putting their bets on the latter.

Home Affordability

Supply and demand. Inventory is down 11% in the nation?s top 100 metropolitan areas and home prices are anticipated to increase 3.9% nationwide, with the greatest appreciation (5.8%) in Western metros. That?s roughly 1% below the 4.9% increase we expect to see for all of 2016. Still, it?s all about location, location, location.

Some metros ? like Boston – Cambridge – Newton ? are expected to see prices rise over 6%. Speaking of location, realtor.com? rates 15 of the 19 largest markets in the wonderful Midwest as having ?strong affordability.? With Millennial market share already higher in these markets by 4%, this trend is expected to continue even as interest rates increase, a development that should shape lender marketing campaigns and outreach efforts. Outside of the big metro areas, the picture looks good for homebuyers, with few buyers having to spend more than 20% of their income to buy a home.

Meet Demand and Stay Compliant with Acuity National Real Estate Solutions

Acuity National Real Estate Solutions is a technology-driven title agency offering cutting-edge tools to help lenders and loan officers reduce cost, increase compliance, and streamline closings. For more information, please visit our homepage today!

Acuity National Real Estate Solutions is proud to have an A+ Rating from the Better Business Bureau (BBB). Perhaps you?ve seen other businesses tout their good ratings as well. But what do they mean? How prestigious are they? And what exactly sets businesses that receive A+ Ratings apart from the rest. You?re in the right place to find out!

The Better Business Bureau: A Short History

The BBB has an impressive 100-year history of protecting consumers, regulating businesses, and strengthening marketplace trust. Founded in 1912, this non-governmental nonprofit consists of over 110 independent chapters throughout America and Canada, with an international headquarters in Arlington, VA.

In addition to its active work in mediating disputes between organizations and customers ? handling over 850,000 cases per year ? the BBB also maintains a nationwide database of letter-grade (A+ through F) business ratings to allow consumers to make informed choices on their purchase habits. The organization’s website states that these ratings are based on information the Bureau is able to obtain about the business, including public complaints and adherence to the Code of Business Practices. But what are the specific factors considered when these ratings are assigned?

BBB Ratings: The Formula

The BBB’s rating system consists of a proprietary formula that weighs 17 different factors. Many of these factors are quantitative (i.e. measurable and systematic), such as the business’s field of operation, its length of existence, professional licensing, and total number of formal complaints (adjusted by overall number of customers served). Other examples include the number of complaints whose resolution was delayed or dropped, government sanctions, and a sustained pattern of failure to address complaints. The other ranking factors are more qualitative and up to the judgment of BBB regulators, such as the relative severity of the complaints, truthfulness in the business’s advertising policies, and the extent and quality of available background information.

Weighting

In almost all cases, the BBB rating is driven by consumer feedback (specifically that of complaint history). While the 17 factors are each separate and discrete, they are weighted differently: ultimately, nearly 85% of the final score is determined by the Bureau’s verification and evaluation of customer complaints, as well as the business’s proficiency in resolving them.

A+ BBB Ratings: An Indicator of Excellence

For a business to receive an A+ rating, it will exhibit consistently excellent customer service and proactive dedication to resolving any problems. As mentioned, this portfolio of consumer care is the single most important factor in determining the final grade. Other “bonus” factors can also work in a business’s favor, such as length of operation (indicating experience and trustworthiness), professional accreditation on the part of the staff or overall company (indicating proficiency in its chosen field of industry), and willingness to make information publicly available (indicating confidence in its own operational integrity).

More about Acuity National Real Estate Solutions

A technology-driven title insurance company serving lenders across the nation, Acuity National Real Estate Solutions provides innovative, forward thinking strategies to streamline closings, increase compliance and improve efficiency. For more information on our services, please visit our homepage today.

Photo courtesy of Gil C / Shutterstock.com

In 2016, email remains the primary means of business communication. Nearly all business today flows through the conduit of email. But because email is a newer means of communication than the telephone and ?snail? mail, many professionals still have not worked it into their workflow in an efficient or secure way.

Email Productivity

Think about this: is email more like an office phone or more like a mailbox? Like an office phone, people use it to contact you directly with the expectation of receiving a prompt reply. But like traditional mail, unsolicited emails from businesses make their way to your inbox on a daily basis. So the question is: how much time should lenders spend checking and responding to emails? Yes, email is used very much like an office phone, and no businessperson would leave their office line unattended for long. But it?s also like your mailbox, and how long would you last if you routinely spent a quarter of your day peering into the mailbox?

? Rule: Check your email and respond to important items once a day for 30 minutes. Create a folder in your email for carryover items.

Email Organization

Perhaps the most important performance metric in the mortgage industry is closed mortgage loans per mortgage employee per month. The higher the number, the better, and right now the average sits at right around 3. Many lenders performing below the average don?t lack dedication or skill, they?re just spending too much time managing files and their email, both of which hurt productivity and slow loan turn times. Communication during the loan origination process is key, and any delays hurt your bottom line. If you routinely have to slog through endless email chains to resolve impasses, realize that there is a better way. Emails give no clear indication of the status of the loan, often necessitating more back and forth than is necessary.

? Rule: Explore task-based software platforms that allow stakeholders to communicate and share documents efficiently and securely.

Email Security

On the other hand, email may have the potential to actually reduce lenders? security when compared to old-fashioned fax and mail. A study of U.S. mortgage lenders found that over 70% of lenders sent or received applicants? confidential information over unencrypted email, placing their own companies and their customers at significant risk.

? Rule: Invest in a secure document sharing platform or email service provider.

Title Services for Today?s Market

Acuity National Real Estate Solutions is a national title agency offering cutting-edge tools to help lenders reduce cost, streamline closings and increase compliance. For more information, please visit our homepage today!