Lending in New York? Purchase money business always carries closing fraud risk, however New York business tends to be riskier for many lenders. The state has high average loan amounts, features instrument recording procedures that delay evidence of mortgage and deed recordings for long periods of time following the closing, and there is no CPL (closing protection letter) in the state. Lenders doing business in New York should be pleased business is on the uptick, however if they do not have a closing table fraud prevention tool in their arsenal they may be facing more risk of potential losses due to fraud.
The NYSAR report released today stated in part:
“With 46,883 new listings and 29,100 pending sales across the Empire State in the first quarter, the real estate market is trending upwards, according to the housing market report released today by the New York State Association of REALTORS®. New listings were up 4.1 percent from the first quarter of 2018 while pending sales rose 0.8 percent.
Median sales prices were also up in a quarter-over-quarter analysis, rising 6.8 percent to $275,000. The average home sales price increased 1.5 percent as well to $360,526.
While closed sales declined from the first quarter of 2018, dropping 6.2 percent to 24,405 homes, other factors are allowing potential home buyers to remain optimistic. According to Freddie Mac, the 30-year fixed rate mortgage rate has steadily decreased since the beginning of 2019, falling to 4.27 percent, its lowest rate since January 2018.
With the typically strong spring season just around the corner, inventory continues to rise, increasing 3.4 percent to 63,504 homes for sale across the state. The month’s supply of homes for sale was up 5.6 percent in year over year comparisons to 5.7 month’s supply. A 6-month to 6.5-month supply is considered to be a balanced market.”