Month: September 2014

1. Is the economic recovery real? 3 stats to watch

“What everyone wants to know is if the economy is truly better. Is this recovery “for real”?”

2. Declining FHA Mortgage Volume Mirrors Market, HUD’s Castro Says

“U.S. Housing and Urban Development Secretary Julian Castro said a decline in lending backed by the Federal Housing Administration reflects a broader drop in the mortgage market and isn’t specific to the government insurer.”

3. Virginia drops JPMorgan from mortgage securities fraud lawsuit

“Virginia Attorney General Mark R. Herring (D) on Monday dropped JPMorgan Chase from a mortgage securities lawsuit against the country’s biggest banks, after learning that his predecessor Ken Cuccinelli (R) had already struck a confidential settlement with the bank.”

4. JPMorgan Mortgage-Unit Garry Cipponeri Said to Leave Bank

“Garry Cipponeri, the head of capital markets for JPMorgan Chase & Co. (JPM:US)’s U.S. mortgage unit, is leaving the bank to start a new company, according to two people with knowledge of the move.”

5. Dudley Says Fed Needs U.S. Economy to Run ‘A Little Hot’

“Inflation running below the Federal Reserve’s target argues for “patience” on interest-rate increases and may require letting the economy run “a little hot,” New York Fed President William C. Dudley said.”

6. Fannie, Freddie to Evaluate Alternative Credit-Scoring Models

“The government-sponsored mortgage giants, facing pressure to end their reliance on old credit-scoring models from Fair Isaac Corp., are working with their regulator to study newer alternatives.”

7. Ginnie Mae launches 5 new initiatives to increase mortgage lending

“While homeownership is the cornerstone of the America dream, the new U.S. Department of Housing And Urban Development Secretary, Julián Castro, noted that due to market conditions, this isn’t as possible as it used to be.”

8. The Fed’s Schizophrenia

“Last week the Federal Reserve decided to curtail its purchases of securities after October bringing to an end its long experiment with quantitative easing (QE), presumably because it is more bullish on the economy. But the Fed also said it will continue to hold interest rates at zero indefinitely suggesting it is still bearish on the economy. The Fed’s economic forecast was in fact marked down to less than 3 percent for the next several years. Perhaps the best term to describe the Fed’s attitude is schizophrenic.”

9. Plosser, hawkish chief of Philadelphia Fed, to retire in March

“(Reuters) – Philadelphia Federal Reserve Bank President Charles Plosser, one of the sharpest internal critics of the central bank’s loose monetary policy, will retire next year, in a departure that could ease pressure to raise interest rates more quickly.”

10. Fannie Mae: Purchase Mortgage Demand Expected to Decline over Next Three Months

“Fannie Mae, Washington, D.C., said large lenders’ expectations that underwriting standards will ease over the next three months coincide with overall lenders’ expected pullback in the demand for single-family purchase mortgages.”

11. CBRE: Office; Industrial Closings Up Sharply

“Office and industrial loan closings jumped sharply during first-half 2014 as the lending recovery broadened beyond the multifamily sector, reported CBRE, Los Angeles.”

12. Dealmaker: Hunt Provides $8.2M to Refi Apartments

“Hunt Mortgage Group, New York, provided a $5.5 million full-term interest-only Fannie Mae loan to refinance Terrace Garden Apartments in San Leandro, Calif.”

13. Future of military housing in question

“The future of military housing is in question due to budget cuts significantly reducing defense spending.”

14. Here’s why MBA strongly opposes public CFPB complaint database

“The Mortgage Bankers Association strongly opposes making public the Consumer Financial Protection Bureau’s consumer complaint narrative database, an open letter from the MBA to the CFPB says.”

15. Are there troubling trends in the new 2013 HMDA data?

“There’s a troubling pattern of low- and moderate-income communities and communities of color being dialed out of housing opportunities, the National Community Reinvestment Coalition said Tuesday.”

16. Half of Americans expect home prices to continue growing

“More than half of Americans think home prices will continue to rise over the next 12 months, a new Bankrate.com report says.”

17. CFPB collecting data on 600 million credit accounts despite privacy, security risks

“A Government Accountability Office comprehensive study released by the ranking member of the U.S. Senate Banking Committee confirms that the Consumer Financial Protection Bureau is collecting financial data on up to 600 million consumer credit card accounts, without sufficient security and privacy protections to ensure there is no risk of improper collection, use, or release of consumer financial data.”

18. Turnaround: Millennials driving housing momentum?

“Millennials are now the key driver behind housing confidence, which is quite the anomaly given millennials’ hesitance toward the housing market over the past year.”

19. Servicers remain nimble with technology made to order

“With a number of Consumer Financial Protection Bureau (CFPB) requirements already established, and countless proposed rules likely to be implemented in the coming months, mortgage servicers are looking for a way to ensure operations continue without a gap in compliance.”

20. Renters now better at paying their bills

“Rental applicants’ credit risks continue to improve, which not only helps renters’ costs but property manager costs as well.”

21. Housing to Top Capital Spending in Next U.S. Growth Leg: Economy

“Bruce Hottle’s $10,000 computer systems upgrade in February at his Pennsylvania concrete plant may be his last investment for another two years.”

22. Would you pay double to live on the water?

“We all know coastal living is expensive, but just how much more would it cost you to live as close to the water as possible in San Diego?’

23. Turning the nation into permanent renters: Stagnant household incomes and growing renter class strikes at core of home ownership.

“The summer selling season has now come to an official close. Not that it had much substance behind it. The sales volume has been wickedly low for all the hoopla being bandied about how great the housing market is doing. Much of the momentum from investor demand has started to wane significantly. At a certain point, the well does run dry and many investors were buying to turn units into rentals so local area incomes absolutely matter especially when prices increase so quickly that they put a damper on cap rates. Many flippers are looking for the next lemming to purchase their pig with lipstick. Crap shacks are selling for $700,000 and we are starting to see that some sellers are hitting a brick wall. Stepping back and looking at the bigger picture however, we find that we have slowly become a nation of renters since the housing bubble first popped back in 2007. Wild financing glossed over the fact that the middle class in the US has been steadily declining. Now that you have to actually show some real income, the numbers don’t look so great especially when you look at mortgage application volume. Census figures also show that we are definitely in a trend of adding more rental households versus people owning their homes. Until the trend reverses, we are seeing many areas become renter hubs.”

24. Near-Term Growth Outlook Remains Intact as Economy Continues to Accelerate

“WASHINGTON, DC – A recent rebound in business investment has bolstered expectations for solid economic growth during the remainder of 2014, according to Fannie Mae’s (FNMA/OTC) Economic & Strategic Research (ESR) Group. The robust headline growth in the second quarter was upgraded from 4.0 to 4.2 percent in the government’s second estimate, with contributions from nearly all major GDP components. In addition, recent data through June showed upward revisions on net, suggesting that second quarter growth likely will be revised higher.”

25. Institutional Investors Invade the Residential Rental Market

“In the August 2014 issue of the Housing News Report, we took a look at how Wall Street institutional investors are impacting the real estate market. Here’s short excerpt:

Back in 2008, some of Wall Street’s most venerable investment banks — Bear Stearns, Lehman Brothers and Merrill Lynch — played an important role in the rise and fall of irresponsible subprime borrowing and lending, financing non-bank mortgage lenders — including Countrywide Financial, New Century Financial and Ameriquest Mortgage — that eagerly sold their toxic mortgages to borrowers through non-licensed loan brokers.”

26. Home Construction Returns to Inland Empire

“When the housing market imploded in 2006, it derailed housing developments nationwide, but nowhere was home building more affected by the downturn than the inland areas of Riverside and San Bernardino counties, Calif. After the bursting of the real estate bubble, housing developments stalled in Riverside, Chino, Temecula, Ontario, Banning, Coachella, Lake Elsinore, Murrieta, Rancho Cucamonga, San Jacinto and Redlands.”

1. Homeowners Tap the Income in Their Homes

“Got a room above the garage? A furnished basement? A bedroom that a grown child has vacated?”

2. For rich people, mortgages are getting cheaper and easier

“For wealthy homebuyers, mortgages are getting cheaper and easier to come by.”

3. Gen Xers are poorer than their parents

“Gen Xers may be taking home bigger paychecks than their parents did at the same age, but they haven’t been able to accumulate nearly as much wealth.”

4. Existing-Home Sales Slightly Lose Momentum in August as Investor Activity Declines

“WASHINGTON (September 22, 2014) – After four consecutive months of gains, existing-home sales slipped in August as investors paying in cash retreated from the market, according to the National Association of Realtors®. Sales increases in the Northeast and Midwest were outweighed by declines in the South and West.”

5. Student loan debt curbs housing market by $83 billion, study says

“There’s been lots of debate lately in housing circles about the impact of student debt on home ownership.”

6. Can landlord require a non-refundable pet deposit?

“Question: A new job required me to relocate to a new area, and I decided to rent a room at a hotel designed for longer stays. I signed a month-to-month rental agreement and paid a half-month’s rent as a pet deposit for my small dog.”

7. Mortgage fraud is alive and well

“If you thought the bad guys had left the mortgage business for greener pastures, think again. The thieves are still out there, ready to separate you from your money. But at the same time, many of us are still not above stretching the truth a little when we are trying to obtain financing.”

8. Blemished credit? Congress weighs changes that could boost scores

“Do you think you’d have a better chance to qualify for a home mortgage if negative items in your credit files were erased in four years rather than the current seven?”

9. FHA Loans Plunge 19 Percent as Banks Haggle With Regulators

“Home loans to lower-income Americans are dwindling as Washington regulators and major banks continue to haggle over who pays when riskier mortgages go bad.”

10. Richmond Fed Chief Upset on MBS Policy Shift

“Jeffrey M. Lacker, president of the Federal Reserve Bank of Richmond, has openly questioned a key aspect Wednesday’s decision by central bank’s Federal Open Market Committee (FOMC) regarding the long-anticipated policy shift away from tapering.”

11. Reverse mortgages no fast ticket to retirement easy street

“You’re 62 or older, and life has derailed your plans.”

12. High-stakes debate over credit reporting

“Do you think you’d have a better chance to qualify for a home mortgage if negative items in your credit files were erased in four years rather than the current seven?”

13. Housing Holds Back Leading Economic Indicators

“Sept. 22, 2014–Sorohan, Mike msorohan@mba.org
The Conference Board Leading Economic Index for the U.S. increased by just 0.2 percent in August; analysts said despite a seventh straight month of gains, a sluggish housing market held back stronger growth.”

14. The Week Ahead

“Sept. 22, 2014–Sorohan, Mike msorohan@mba.org
The Senate Banking Committee holds the only hearing of note this week. On Tuesday, Sept. 23, the Banking Committee meets to consider nominations of Lourdes Maria Castro Ramirez as assistant secretary at HUD and Therese McMillan as federal transit administrator with the Department of Transportation.”

15. Fitch: CMBS Sector Stable

“Sept. 22, 2014–Tucker, Michael mtucker@mba.org
Property fundamentals and market conditions for major commercial mortgage-backed securities property types remain stable and some sectors–especially hotels–could see continued improvement, reported Fitch, New York.”

16. Dealmaker: KDH Secures $15.6M in Texas

“Q10 Kinghorn, Driver, Hough & Co., Houston, secured $15.6 million for an office building and an industrial building in Texas.

KDH Principal Ray Driver III and Associate Dave Holland secured a 10-year permanent loan to refinance a Class A multi-tenant office building in Katy, Texas. The Mission Cos., Houston, finished the 32,000-square-foot office, which serves as headquarters for Entrust Inc., last year.”

17. Mom-and-Dad Banks Step Up Aid to First-Time Home Buyers

“The Bank of Mom and Dad is playing a growing role as lender of last resort for a housing recovery struggling to provide more traction for the U.S. economy.”

18. Investors Unite: No, District Court ruling won’t affect GSE lawsuit

“A ruling late Friday with U.S. District Judge Amy Jackson holding that Fannie Mae shareholders cannot sue the Department of Treasury in a derivative action may not be the blow to the shareholder case against Treasury that HousingWire first cast it as.”

19. Financial Stability director: SIFI designation is not “too big to fail”

“The ability of the Financial Stability Oversight Council to designate nonbank firms as systemically important financial institutions has come under intense scrutiny in recent months.”

20. ABS East: Lawsky has legacy MSRs “at a standstill”

“If the last few months are any indication, Ocwen Financial (OCN) Executive Chairman William Erbey was slightly incorrect when he proclaimed that the entire mortgage servicing rights market was frozen after the by the New York Department of Financial Services, after the NYDFS, led by Superintendent Benjamin Lawsky, put a $2.7 billion MSR deal between Ocwen and Wells Fargo (WFC) on an indefinite hold.”

21. Subprime Lending

“Not that many years ago, subprime loans almost brought down the global economy. The financial world collectively vowed to never again go overboard advancing money to people considered unlikely to pay it back. But in the U.S., some forms of subprime are on the rise again, primarily in auto loans and also in small-business lending. That has some observers worried — and others calling for more such lending. Not all subprime loans are bad, they say, and it’s not just banks saying it. Consumer advocates want more people to have access to loans while economists see tight credit playing a big role in holding back economic recovery. Maybe subprime mortgages are the medicine the economy needs. Or maybe subprime is such a slippery slope that we’re better off not going there. Is it possible to do just the right amount of risky lending?”

22. Home Construction Returns to Inland Empire

“When the housing market imploded in 2006, it derailed housing developments nationwide, but nowhere was home building more affected by the downturn than the inland areas of Riverside and San Bernardino counties, Calif. After the bursting of the real estate bubble, housing developments stalled in Riverside, Chino, Temecula, Ontario, Banning, Coachella, Lake Elsinore, Murrieta, Rancho Cucamonga, San Jacinto and Redlands.”

1. Fed’s Fisher: wages rise when joblessness drops below 6.1 percent

“(Reuters) – The United States could be on the verge of a worrisome surge in wages if unemployment continues its downward trend, based on research Dallas Federal Reserve Bank President Richard Fisher presented to his colleagues at the Fed’s policy-setting meeting this week.”

2. Divide between homeowners and renters is growing

“For homeowners in Southern California, the housing recovery has been pretty kind. For renters, not so much.”

3. Which Way is Housing Really Moving?

“The progress of the housing market appeared to continue on a two-steps-forward/one-step-back trajectory, with forward-looking news of the Federal Reserve’s decision to finally move away from tapering and a rise in average fixed mortgage rates coupled with a housing starts data that saw a double-digit percentage drop.”

4. Mortgage rates jump to 4-month high

“Average fixed mortgage interest rates had their biggest one-week jump of the year this week, bringing them to levels not seen since early May.”

5. Slump in U.S. Housing Starts Led by Multifamily: Economy

“Housing starts slumped in August from the highest level in almost seven years, reflecting a setback in multifamily projects that are at the forefront of the rebound in U.S. real estate.”

6. Obama’s chances to wind down Fannie and Freddie before November slipping away

“Hope for reforming government mortgage buyers Fannie Mae and Freddie Mac is dimming as the 113th Congress finishes up its last business before the November elections, even as Obama administration officials intensify the push to fix housing finance and boost home lending.”

7. New York’s foreclosure backlog isn’t going away until 2016, at least

“The backlog that keeps the average property in the state New York in foreclosure proceedings for more than four years isn’t going away anytime soon. In fact, the foreclosure logjam isn’t expected to dissipate until at least 2016, according to a new report from Moody’s Investors Service on foreclosures for loans in private-label residential mortgage-backed securitizations.”

8. Fitch: Servicer Concentration Could Pressure U.S. RMBS

“Sept. 19, 2014–Sorohan, Mike msorohan@mba.org
Fitch Ratings, New York, said rapid growth of several U.S. mortgage servicers means that a small group of entities control the vast majority of legacy loans in need of a workout, which could present risks for some private-label residential mortgage-backed securities.”

9. Waterfront Properties Extend Huge Price Differential

“Sept. 19, 2014–Sorohan, Mike msorohan@mba.org
Neither hurricanes, nor tsunamis, nor flooding, nor’easters can dampen waterfront home values, said Zillow, Seattle.”

10. Moody’s: Prices Approach Prior Peak

“Sept. 19, 2014–Tucker, Michael mtucker@mba.org
Property prices increased slightly in July, reported Moody’s Investors Service and Real Capital Analytics, New York.”

11. Dealmaker: HFF Arranges $72M Construction Financing in Oregon

“Sept. 19, 2014–Tucker, Michael mtucker@mba.org
HFF’s Portland, Ore., office  arranged $71.75 million to develop Block 67, a 21-story Class A apartment building in the city’s Central Eastside district.”

12. Hall & Oates Highlight ConcertMBA at 101st Annual Convention/Expo

“MBA Staff
Fresh off their induction into the Rock & Roll Hall of Fame, Hall & Oates will perform at ConcertMBA at the Mortgage Bankers Association’s 101st Annual Convention & Expo, Oct. 19-22 at the Mandalay Bay Hotel & Casino in Las Vegas.”

13. HUD, administration announce Promise Zone competition

“Housing and Urban Development Secretary Julián Castro joined Agriculture Secretary Tom Vilsack, Transportation Secretary Anthony Foxx, and Education Secretary Arne Duncan announced Friday morning a competition to designate a new round of Promise Zones.”

14. Progress Residential prices first REO-to-rental securitization

“Progress Residential, the latest company to join the growing REO-to-rental securitization market, has priced its first securitization, a $473.4 million offering, backed by a single loan secured by a first priority of mortgages on 3,142 income-producing single-family rental properties.”

15. CFPB memo ensures mortgage protections to same-sex marriages

“For those who work in the mortgage business, take note, regulators are looking to ensure that same-sex marriages get equal treatment when it comes to applying for credit products.”

16. CHARTS: How Stonegate will thrive in a flat market

“During Stonegate Mortgage’s (SGM) CEO Jim Cutillo’s presentation at the Zelman Housing Summit in McLean, Virginia, Cutillo not only stated that the non-bank mortgage company would succeed in 2014 but that it would even grow in the flat market.”

17. Call to end Treasury secrecy on Fannie and Freddie gets louder

“A coalition of 17 conservative and free-market public policy groups sent a letter to the ranking members of the House Finance Services Oversight and Investigative Subcommittee urging them to demand more transparency and accountability regarding the “Third Amendment Sweep” of the six-year GSE conservatorship agreement from the U.S. Treasury.”

18. Obama administration making more big promises on housing

“U.S. Department of Housing and Urban Development Secretary Julián Castro will join Department of Agriculture Secretary Tom Vilsack, Department of Transportation Secretary Anthony Foxx, Senator Bob Casey of Pennsylvania and Congressman Gary Peters of Michigan for a press call Friday at 11 a.m. ET to discuss the next round of Promise Zone applications.”

19. Housing start woes go deeper than single-month drop

“With news Thursday that privately owned housing starts plunged 14.4% in August, many were left scratching their heads at how starts could have printed so poorly.”

20. RPM Mortgage expands to East Coast

“Alamo, California-based RPM Mortgage acquired Regency Mortgage, a 14-branch private mortgage lender with operations in New Hampshire, Maine, Massachusetts, Vermont and Florida.”

21. Home Depot breach bigger than Target at 56 million cards

“(Reuters) – Home Depot Inc (HD.N) Thursday said some 56 million payment cards were likely compromised in a cyberattack at its stores, suggesting the hacking attack at the home improvement chain was larger than last year’s unprecedented breach at Target Corp (TGT.N).”

22. reQuire grows, acquires Final Trac

“Virginia Beach, Virginia-based reQuire, a lien release tracking and reporting service for the real estate settlement services sector, has completed the acquisition of Final Trac.”

23. Now available: HW Bank Reports

“Last year, we announced an exclusive and innovative partnership with BankDATAWORKS.com, designed to bring U.S. bank data directly to mortgage and housing market participants.”

24. Initial jobless claims beat expectations, down to 280K

“Initial jobless claims dropped to 280,000 for the week ending Sept. 13, dramatically better than expectations of 305,000, the lowest since 2000.”

25. Windermere Real Estate joins RealtyTrac’s broker network

“Seattle-based Windermere Real Estate, which is the largest regional real estate company in the Western United States,has become the latest member of RealtyTrac’s broker network, RealtyTrac Network.”

26. CMBS Buyers Reslient as Wall Street Bombards Debt Market

“Commercial-mortgage bond buyers are standing up to an onslaught of new deals, belying concern that banks would struggle to sell the debt as issuance surges to the highest in seven years.”

27. Italy Mortgage Rise Not Enough to Reverse Home Slump, Fitch Says

“Italian house prices will continue to decline over the next two years as an increase in mortgage lending isn’t sufficient to counter a sagging economy, Fitch Ratings said.”

28. Japan’s Top Cities Post Land-Price Gains as BOJ Easing Help

“Land prices in Japan’s three largest metropolitan areas increased for a second year and residential prices in the cities increased for the first time in six years as low interest rates lifted demand for properties.”

29. Dutch Pension Funds Plan $2.6 Billion Investment in Mortgages

“Dutch pension funds will invest about 2 billion euros ($2.6 billion) into domestic mortgage lending, boosting home-loan competition as they seek higher returns.”

30. Mom-and-Dad Banks Step Up Aid to First-Time Home Buyers

“The Bank of Mom and Dad is playing a growing role as lender of last resort for a housing recovery struggling to provide more traction for the U.S. economy.”

31. REAL ESTATE: Tips to avoid being scammed

“The California Bureau of Real Estate has just put out an advisory to help consumers and senior citizens avoid taking the bait on real estate fraud for home loans, rentals, time shares and property recordings.”

32. OBAMA ADMINISTRATION ANNOUNCES COMPETITION TO DESIGNATE NEXT ROUND OF PROMISE ZONES

“WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro joined U.S. Department of Agriculture Secretary Tom Vilsack, U.S. Department of Transportation Secretary Anthony Foxx, and Education Secretary Arne Duncan to announce a competition to designate a new round of Promise Zones. These Promise Zones are part of the President’s plan to create a new pathway to the middle class by partnering with local communities and businesses to create jobs, increase economic security, improve educational opportunities, and reduce violent crime.”

33. Are these homes worth 65-mile commute?

“If you work in San Diego, you can drive home each day to a new house in a planned development for $350,000.”

1.       Some Republicans Back State Minimum-Wage Increases
“In Washington, Republicans are allied against President Barack Obama’s call to raise the federal minimum wage. But in the five states where voters will have a say on wage floors this fall, GOP candidates in competitive races say they favor an increase.”

2.       U.S. poverty rate drops for first time since 2006
“There’s not much good news for working Americans struggling to rebound from the recession, except perhaps this: the U.S. poverty rate is finally on the decline.”

3.       Realtors® President Calls on Policy Makers to Protect Middle Class Homeownership at Bipartisan Policy Center Housing Summit
“WASHINGTON (September 16, 2014) – National Association of Realtors® President Steve Brown delivered remarks about the ongoing obstacles to mortgage credit facing creditworthy buyers today at the Bipartisan Policy Center’s 2014 Housing Summit, Housing America’s Future: New Directions for National Policy.”

4.       Investcorp says buys U.S. real estate assets for around $250 mln
” (Reuters) – Investcorp, an alternative investment manager based in Bahrain, said on Tuesday it had acquired a portfolio of office and industrial property assets in three cities in the United States for around $250 million.”

5.       COLUMN-China hasn’t got investors’ backs: James Saft
“(Reuters) – In a world in which investors increasingly assume policy-makers have their backs, China may be about to demonstrate how it can work the other way.”

6.       New York regulator probes so-called ‘hard money lenders’
” (Reuters) – New York regulator Benjamin Lawsky has launched an investigation into potential predatory practices by lenders who make short-term, high-interest loans secured by homes or other real estate.”

7.       MIDEAST MONEY-U.S. rate hikes to trim inflation, expose weak finances in Gulf
“DUBAI, Sept 15 (Reuters) – Most of the Gulf’s rich oil exporting economies will cope comfortably with an era of rising interest rates, but fund flows within the Gulf may shift and fragile state finances in the less wealthy countries will become more exposed.”

8.       Homeowner association won’t make repairs; is there recourse?
“Question: We bought our property in a homeowner association more than 15 years ago, influenced by the salesperson, board and managers who promoted “community.” They emphasized amenities and goals of increasing and maintaining property values, ensuring marketability of homes. We now realize they’re more interested in planting flowers than fixing maintenance problems. They’d rather plan holiday events and potlucks than adequately repair our crumbling infrastructure. Many buildings have cracks in floors and walls. The covenants, conditions and restrictions (CC&Rs) require owners to insure their units or be fined. When our unit suffered damage caused by a common area, our insurer said it was the association’s fault, but the association’s insurance hasn’t committed to payment. The board hasn’t repaired it, and won’t let us repair it. Can we sue the manager, board and owners for damages and for diminishing the value of our unit?”

9.       Will Congress renew tax relief for homeowners’ debt forgiveness?
“Congress is back from its summer vacation, so the burning financial question on thousands of homeowners’ minds right now is this: Are you guys finally going to help out consumers who are underwater on their mortgages, many of whom face crushing federal tax bills if they accept — or have already accepted — principal reductions by their lenders?”

10.   MBA Offers Single-Family, Multifamily Recommendations to FHFA Strategic Plan
“Sept. 16, 2014–Sorohan, Mike msorohan@mba.org
The Mortgage Bankers Association, in comments to the Federal Housing Finance Agency, offered recommendations to the agency’s single-family and multifamily strategic plan for fiscal years 2015-2019.”

11.   Wells Fargo finds mortgage myths hamper home purchases
” (Reuters) – Getting a mortgage in the United States may be easier than many borrowers think, according to a survey released Monday by Wells Fargo & Co (WFC.N), the largest U.S. mortgage lender.”

12.   Housing and mortgage financing are not ready for demographic shift
“The housing industry and the mortgage finance industry are not ready for the great demographic shift that is coming as boomers age and a more ethnically diverse block of millennials and post-millennials come of age.”

13.   Fannie, Freddie profits should fund transition to new housing-finance system, analyst says
“Rather than funneling profits from housing-finance giants Fannie Mae and Freddie Mac to the government, those funds could be put to better use by providing capital that supports a transition to a new mortgage-finance system, a housing expert said Monday at a summit in Washington.”

14.   Delinquency rates fall at major U.S. banks in August
“(Reuters) – A majority of big U.S. banks reported a fall in delinquency rates for August as customers made their credit card payments on time. However, charge-offs rose at most of these banks.”

15.   HOPE NOW: 35K Loan Mods in July
“Sept. 16, 2014–Tucker, Michael mtucker@mba.org
The HOPE NOW alliance said 35,000 homeowners received non-foreclosure assistance from mortgage servicers in July, including modifications completed under both proprietary programs and the government’s Home Affordable Modification Program.”

16.   Residential Briefs
“Sept. 16, 2014–MBA Staff
Fay Servicing Adds RES.NET REO Platform to Manage Portfolio
RES.NET, Lake Forest, Calif., now provides its REO Portal to Chicago-based Fay Servicing, a special servicer and mortgage originator, giving Fay’s clients access to an agent network, vendors and operating tools.”

17.   KBW: ‘Optimistic’ Outlook for Commercial Mortgage REITs
“Sept. 16, 2014–Tucker, Michael mtucker@mba.org
The outlook for commercial mortgage real estate investment trusts remains good, reported Keefe, Bruyette & Woods, New York.”

18.   Virginia targets banks with $1.15B toxic mortgage lawsuit
“Virginia Attorney General Mark Herring announced a giant lawsuit against some of the largest commercial banks for fraud committed against Virginia taxpayers during the height of the financial crisis.”

19.   Even credit-worthy borrowers struggle to get a mortgage
“The national homeownership rate continues to decline, and many say that it’s only going to get worse because of tighter lending standards, burdensome regulations that create lender uncertainty and affordability challenges.”

20.   Credit unions to Senate Banking: Enough is enough
“XCEL Federal Credit Union President and CEO Linda McFadden will tell the Senate Banking Committee on Tuesday that “enough is enough” when it comes to the overregulation of credit unions, sources in Washington tell HousingWire.”

21.   Everyone agrees there must be housing finance reform
“Housing finance reform is a nut that still can’t be cracked because of a lack of consensus among those involved, but most agree the status quo can’t continue.”

22.   Treasury doesn’t want former Fannie CFO in GSE investor lawsuit
“A week ago HousingWire first reported that former Fannie Mae CFO J. Tim Howard was hired by Fairholme Funds in their lawsuit against the U.S. Treasury, and now the government is arguing against allowing Howard access to 800,000 pages of discovery documents.”

23.   $478 million in subprime-boom bonds to hit market
“Investors looking to get their hands on some subprime vintage debt will get their chance on Tuesday, when $477.8 million in non-agency pre-bust bonds are scheduled to trade as part of $727.3 million package.”

24.   Former HUD Secretary: Housing assistance programs in dire need of reform
“Former Housing and Urban Development Secretary Henry Cisneros says that the current affordable housing assistance programs are skewed in both scope and effect, shutting out three of four of those in need.”

25.   HUD, U.S. Bank resolve lending discrimination allegations
“The U.S. Department of Housing and Urban Development reached an agreement with U.S. Bank National Association, U.S. Bank subsidiary Red Sky Risk Services, (formerly known as USB Lending Support Services) and one of U.S. Bank’s loan officers, resolving allegations that they refused to refinance the mortgage of an American Indian couple in Belcourt, North Dakota, because their property is located on a reservation.”

26.   Calpers Has Lost Interest in Hedge Funds
“Here is a simple model for hedge fund fees:
1.There are some people who can reliably generate alpha — returns in excess of the market return — but those people are rare.
2.It is somewhat difficult to tell who those people are; in particular, at any given time, there are more people who look like they can generate alpha than who actually can.1
3.If you are one of the people who can generate alpha, you should charge a fee for your services that is equal to the alpha that you generate.2

4.If you are not one of those people, you should charge a fee equal to the alpha that those people generate, because then investors might think that you’re one of them.”

27.   SoCal housing market so hot, sellers finding the need to cut prices: One third of sellers in Orange County have found the need to cut asking price.
“While the heat wave continues in SoCal drawing out the summer, there is little momentum from the 2013 real estate bonanza. Sellers with their awe inspiring wisdom are finding that no, they simply cannot ask for delusional prices on their stucco box crap shacks. As it turns out, a large number of sellers need to cut asking prices to get interest on their properties. New data shows that in Orange County, the most expensive SoCal county, one-third of sellers have chosen to drop their asking price. Some sellers of course are opting to pull their properties from the market with the hope that next spring, a new breed of sucker will be out in the market ready to plunk down $700,000 on a dumpy pad. In reality, many buyers just don’t have the cash to support current prices even with historically low interest rates. Given the option, many would buy if they had the means to do so. Instead, you have a large number of adults living with parents enjoying meals of Fancy Feast with a glass of Kool-Aid since they don’t even have the deposit for a rental, let alone a down payment for a home. The renting trend is moving along steadily. The market is so hot in SoCal that sellers are now having to lower their asking price.”

28.   Fannie Mae Applauds The U.S. Environmental Protection Agency’s Release of the ENERGY STAR Score for Multifamily
“WASHINGTON, DC – Today, the U.S. Environmental Protection Agency (EPA) advised industry partners that an ENERGY STAR® score for multifamily properties is now available. The score gives property owners and managers the ability to quantify and compare the energy performance of their multifamily housing properties against similar properties, and provides information to help prioritize energy efficiency efforts to ultimately save money. Since 2011, Fannie Mae has been the primary sponsor of EPA’s development of this score by sharing expertise and collecting the data necessary to develop the score with its Multifamily Energy and Water Market Research Survey.”

29.   Freddie Mac Announces Eleventh Multifamily Securities Offering This Year, K-716
“MCLEAN, VA–(Marketwired – Sep 15, 2014) –  Freddie Mac (OTCQB: FMCC) today announced a new offering of Structured Pass-Through Certificates (“K Certificates”) backed primarily by fixed-rate multifamily mortgages with 7-year terms. The company expects to issue approximately $1.2 billion in K Certificates (“K-716 Certificates”), which are expected to price the week of September 15, 2014, and settle on or about September 25, 2014. This is Freddie Mac’s eleventh K Certificates offering this year and its second offering this month.”

30.   Freddie Mac September 2014 U.S. Economic and Housing Market Outlook
“MCLEAN, VA–(Marketwired – Sep 15, 2014) – Freddie Mac (OTCQB: FMCC) released today its U.S. Economic and Housing Market Outlook for September, showing that while the single-family building sector is slowly chugging along, the multifamily sector, especially apartment buildings for rent, continue its strong rebound.”

31.   Did the HAMP Mod Program Delay the Foreclosure Crisis?
“After the housing bubble burst in 2006, it ushered in the foreclosure crisis, with 5.5 million borrowers losing their homes to banks. Now that the foreclosure tidal wave has receded, most believe that the foreclose storm is over. Nationwide, foreclosure activity is down 9 percent from a year ago in July, according to RealtyTrac — the 47th consecutive month where foreclosure activity decreased annually.”

32.   Why The Real Estate Market Remains Fragile
“The foreclosure numbers look so much better these days that at first glance it’s hard to see any big national problems looming ahead. After all, as RealtyTrac points out, July foreclosure levels were 16 percent below a year earlier.”

33.   Once-troubled reverse mortgages poised for rebound
“WASHINGTON (AP) — Advertised as a path to an affordable retirement, federally insured reverse mortgages are showing signs of a rebound, drawing the scrutiny of regulators seeking to reduce historically high default rates that have cost the government billions.”

34. Just Approved: Relative’s co-signing allows home purchase

“Mortgage adviser: John Holmgren.

Property type: Single-family residence in Berkeley.

Loan amount: $440,000.

Loan type: 30-year fixed.

Loan rate: 4.5 percent.”

1.First rise in foreclosure auctions in nearly four years
“Foreclosures are up for the first time in nearly four years. But housing experts aren’t worried.”

2.New way to sell real estate
“CNBC’s Diana Olick reports from New York City, where real estate agents are working to reach a wider pool of buyers by posting the before and after virtual renovations online. ”

3.Examining the net worth of renters and homeowners: Most Americans stash their wealth in home equity. Many housing markets affordable, just not the area you are looking at.
“The nation is undergoing a radical transformation where renting is currently outpacing homeownership.”

4. Real Estate Equity Crowdfunding Is Catching On With Investors
“In the high-flying world of commercial property investments, $1.5 million is a rounding error. So most investors probably didn’t pay much attention when, in late July, the owners of the Hard Rock Hotel Palm Springs said they had sold a 15 percent stake for that sum to a group of 85 people.”

5.Mortgage rates up, loan applications down
“There seems to be a disconnect between two big housing market indicators.”

6.California August Home Sales
“An estimated 37,228 new and resale houses and condos sold statewide in August. That was down 6.0 percent from 39,608 in July, and down 12.5 percent from 42,546 sales in August 2013, according to CoreLogic DataQuick data. ”

TonyAlvarez.com

 

1.Southern California housing market downshifts in August
“Home prices in Southern California hit their highest level in nearly seven years this summer, but those gains are slowing down.”

2.Applications for New Home Purchases Decreased in August
“The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for August 2014 shows mortgage applications for new home purchases decreased by 9 percent relative to the previous month.  This change does not include any adjustment for typical seasonal patterns. ”

3.US Average Rate on 30-Year Home Loan 4.12 Percent
“Average long-term U.S. mortgage rates rose slightly this week.”

4.Foreclosures are back — are they coming to your city?
“The number of homes scheduled for foreclosure auction is rising — reversing a years-long trend. ”

5.Sacramento housing market continues to cool off
“Sacramento’s housing market continued to cool off in August, with fewer properties changing hands and prices holding steady from the month before.”

6.California economy will keep plodding through ’16, UCLA forecast says
“California’s “painfully plodding” economic recovery will continue its slow march through 2016, according to the quarterly UCLA Anderson Forecast.”

7.California home sales drop to 4-year August low
“The number of homes sold in California fell to the lowest level for an August in four years as a supply crunch pushed prices higher and kept homes out of reach for many buyers, a real estate research company reported Thursday.”

8.Drop in U.S. workforce due to aging, not weak economy -Fed paper
“The drop in U.S. workforce participation since the financial crisis is largely due to the aging of the American population and will not reverse even if labor markets improve, a paper to be presented at a Brookings Institution conference on Friday says.”

9.California may see stronger economic growth next year
“California’s economy continues steady improvement, and growth should accelerate next year, according to the latest projection from the Business Forecasting Center at the University of the Pacific in Stockton. ”

10.Foreclosure activity increases 7 percent in August
“Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 116,913 U.S. properties in August, an increase of 7 percent from the previous month but still down 9 percent from a year ago, according to the real estate information company RealtyTrac Inc. of Irvine.”

TonyAlvarez.com

1.Slow and Steady Now Winning the Home-Price Race

“The Trulia Price Monitor and the Trulia Rent Monitor are the earliest leading indicators of how asking prices and rents are trending nationally and locally. They adjust for the changing mix of listed homes and therefore show what’s really happening to asking prices and rents. Because asking prices lead sales prices by approximately two or more months, the Monitors reveal trends before other price indexes do. With that, here’s the scoop on where prices and rents are headed.”

2.Mortgage Applications Decrease in Latest MBA Weekly Survey
“Mortgage applications decreased 7.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 5, 2014.  This week’s results included an adjustment for the Labor Day holiday.”

3.Becoming a millionaire real estate crowdfunder
“Investors have always liked real estate for the opportunity to own real property and invest in something familiar that generates returns. Will the crowdfunding model for real estate prove as popular? I think it should, for three key reasons: increased accessibility, greater transparency and significantly fewer geographical limitations. ”

4.The economy has begun to recover, but mostly just for this group of people
“Upper-income folks have experienced rich economic recovery, while low- and mid-income families continue to lag, and consumer confidence is weak, according to recent reports that highlight a post-recession widening gap in the way differently situated households have fared.”

TonyAlvarez.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.Real Estate Crowdfunding Firm Seeks Lending Revolution
“The head of consumer-product marketing at Google Inc. (GOOG) and a former general counsel for a travel website are seeking to transform the mortgage-finance industry. Michael Burry, the hedge-fund manager who foresaw the housing market’s nosedive, is betting they can. ”

2.Zillow CEO: Real estate is the ultimate mobile endeavor
“As real estate listings site Zillow heads to a $3.5 billion deal to buy Trulia in 2015, Zillow CEO Spencer Rascoff says the two companies will become part of a media portfolio that will position it for an increasingly mobile world.”

3.US Job Market’s Lingering Weak Spot: Stagnant Pay
“The U.S. job market has steadily improved by pretty much every gauge except the one Americans probably care about most: Pay.”

4.Jobs still biggest worry for home buyers
“Despite a slight pickup in home sales over the summer, Americans are feeling less optimistic about the nation’s housing recovery. The overall labor market, along with personal income growth, or lack thereof, are the key drivers of this increasing bearishness. The share of consumers who think now is a good time to buy a home fell for the second consecutive month, according to a monthly survey by mortgage giant Fannie Mae. ”

5.Big money investors pull out of California dramatically: Large purchases from LLCs and LPs for trustee sales are down by over 80 percent from peak reached in 2012.
“Follow the big money has been an adage on Wall Street for many decades.  If that philosophy holds true for real estate as well, big money investors are signaling something regarding California real estate.  Big investors have entered the single family housing market in a way that is unparalleled in history.  We truly are in uncharted waters here.”

TonyAlvarez.com

1.How Your Neighbors Can Help — or Hurt — Your Home’s Sale
“When preparing to sell your home, you probably spend a lot of time and energy getting it in its best showing condition. But can improvements to your neighbor’s property help sell your home?”

2.US Job Growth Slows to 142K, Fewest in 8 Months
“U.S. employers added the fewest jobs in eight months in August, snapping a streak of robust gains and surprising analysts because recent reports had suggested that the economy was steadily improving.”

3.August Jobs Numbers Disappoint
“August jobs numbers fell below expectations as the economy added 142,000 new jobs last month, falling below the 200,000 projected. It is the first time in seven months that the U.S. economy has failed to add at least 200,000 jobs in a given month, and far below the 12-month average of 212,000. The unemployment rate fell slightly to 6.1 percent, while total long-term unemployed declined by 192,000.”

4.Will crowdfunding change real estate investing in Oakland?
“In Oakland and many other cities hit hard by the foreclosure crisis, investors swooped in with bags of cash and scooped up distressed properties to rehab and flip. Much of this investment came from foreign nationals and large US corporations such as Blackstone Group (which spent $8 billion gobbling up 43,000 properties in the past two years, according to Bloomberg). A real estate crowdfunding startup based in San Francisco aims to change the face of those investors.”

5.Look past the weak jobs report
“The U.S. economy continues to heal, albeit slowly. Of course, Friday’s jobs report, which showed a gain of just 142,000 jobs in August, was surprisingly weak. But this tepid recovery is not a straight line up; three steps forward, two steps back”

TonyAlvarez.com

1.Where Americans Are Moving
“Three times as many people moved from Los Angeles to Houston, and from New York to West Palm Beach, than the other way around. Most movers are toward counties with lower density, lower unemployment, and cheaper housing.”

2.Mortgage Credit Availability Decreases Slightly in August
“Mortgage credit availability decreased in August according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from the AllRegs® Market Clarity® product.  ”

3.Average US 30-Year Mortgage Rate Holds Steady
“The average 30-year U.S. mortgage rate this week remained at a 52-week low of 4.10 percent for the third straight week.”

4.Ukraine’s Conflict Boosts U.S. Real Estate
Ukraine’s ongoing war with pro-Russian separatists and their Moscow benefactors is pushing money out of the region — and into the United States.

5.Why Real-Estate Agents Should Consider Insurance
“When real-estate agents Fran Day and Tom O’Neill agreed to help a couple sell their home in upscale rural Pennsylvania, they didn’t expect a seven-year legal battle that went all the way to the state’s highest court.”

6.Housing markets still affordable for grads saddled with student loan debt
“Nearly all — 96 percent — of U.S. housing markets are still affordable for recent college graduates making the median household income — even those with student loans, according to a report Thursday from RealtyTrac Inc. of Irvine.”

TonyAlvarez.com