Month: November 2014

1. Audit Shows FHA Fund is Healthy, Time to Lower Mortgage Insurance Premiums, Say Realtors®

“WASHINGTON (November 17, 2014) – The following is a statement by National Association of Realtors® President Chris Polychron…”

2. Barely 1 in 5 L.A. homes affordable to middle class, study finds

“The bad news: Los Angeles County is the second-least affordable housing market in the country for a middle-class family.”

3. Short-sellers in limbo waiting for mortgage forgiveness tax relief

“David Foster, who sold his condo in Chicago last month, isn’t plugged in to Capitol Hill’s political games. But he has banked the financial future of his family on Congress accomplishing at least one thing during the post-election session: renewing the expired Mortgage Forgiveness Debt Relief Act so that he and his wife and three young children aren’t crushed by taxes next year on the $100,000 his lender agreed to cancel as part of a short sale.’

4. FHA Loan Insurance Fund Is Back in the Black, Report Shows

“The U.S. government’s mortgage insurance fund posted its first positive balance in two years after boosting premiums and cutting losses on loans.”

5. Housing agency won’t need another bailout

“A top government regulator for the housing industry will not need another taxpayer bailout this year.”

6. Federal mortgage insurer FHA swings closer to financial health

“WASHINGTON (MarketWatch) — There’s good and bad financial news for the federal mortgage insurer that aims to support homeownership among families who can’t afford a large down payment, according to a report released Monday.”

7. MBA: Independent mortgage bankers most closely regulated of all

“With a few players in the mortgage space having made unfortunate headlines in the last couple of months, some are worried that it may make borrowers gun shy about independent mortgage bankers and nonbank firms.”

8. Court to Consider When Second Mortgage Can Be Void

“The Supreme Court said Monday it will decide whether homeowners who declare bankruptcy can void a second mortgage if the home’s market value has dropped below the amount they owe on the first mortgage.”

9. Homebuilder confidence rises in November

“Builder confidence in the market for newly built single-family homes rose four points to a level of 58 on the National Association of Home Builders/Wells Fargo housing market index.”

10. Freddie Mac: 5 game-changing predictions for 2015

“The housing market is about to turn a corner into the new year, and according to Freddie Mac, the U.S. economy is well poised to sustain about a 3% growth rate for 2015.”

11. PropertyRadar: Spring could bring hope for California homebuyers

“The median price of a California home in October remained unchanged from September, once again coming in at $385,000, reaffirming a continuous trend of flat prices, according to the latest PropertyRadar Real Property Report.”

12. More parents move in with their kids

“Amy Goyer moved from Alexandria, Va., to Arizona about five years ago; her parents moved into a senior living community, and she moved into their home of 30 years.”

13. Julian Castro: Broad Support “For Doing Away With Fannie” Backstop

“HUD Secretary Julian Castro spoke with Bloomberg TV’s Peter Cook about the first positive balance for the Federal Housing Administration’s mortgage-insurance fund in two years and the outlook for an overhaul of federal housing-finance rules.”

14. REAL ESTATE: Sweet smell of housing success

“Decades ago, it was a place where the scent of orange blossoms filled the air, where families in need of a working wage could get their start.”

15. REAL ESTATE: Land sites will roll out in 2015 across Riverside County

“For all the talk of housing shortages, watch for stealth companies that bought distressed property at rock-bottom prices to put their holdings back on the marketplace in 2015.”

16. FHA ISSUES ANNUAL FINANCIAL STATUS REPORT TO CONGRESS

“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today released its annual report to Congress on the financial condition of the Federal Housing Administration (FHA) Mutual Mortgage Insurance (MMI) Fund. The independent actuarial report shows that FHA’s Mutual Mortgage Insurance Fund (MMIF) has improved going from a negative value to a growth of $21 billion within two years. Read a comprehensive summary of the report released today.’

17. The condo alternative pitch: Tiny homes in Pasadena continue to hit the market for first time home buyers.

“There is a heavy premium that is placed on purchasing a single family detached property.  In the past, condos were seen as a fine entry point into the housing market before trading up to a single family detached home.  But with current home and condo prices, people are looking at making their first purchase stick.  Since there appears to be a slowdown in the housing market, we are seeing some interesting marketing on how properties are pitched.  One of them is the condo alternative pitch on smaller properties.  These homes are targeted to those desperately trying to get their foot into the housing market even if the home is smaller than a condo.  I’ve seen a good amount of these properties hitting the market in Pasadena.  I would imagine that many buying these places are planning on leveraging up in a few years and going with a bigger property, especially if they plan on having a family given buying a home tends to set the stage for kids.  Let us take a look at a current property in Pasadena that fits the bill.”

18. Freddie Mac November U.S. Economic and Housing Market Outlook

“MCLEAN, VA–(Marketwired – Nov 17, 2014) – Freddie Mac (OTCQB: FMCC) released today its U.S. Economic and Housing Market Outlook for November showing that the home purchase market is expected to continue strengthening along with the broader economy during 2015.”

19. 20 Most Affordable Markets with Good Schools

“RealtyTrac analyzed school test scores for nearly 25,000 elementary  schools in more than 7,500 U.S. ZIP codes, along with home price affordability  in those same zip codes to identify the top zip codes with the ideal  combination of good schools and affordable home prices — and also with low  unemployment rates below the national average. RealtyTrac also looked at zip  codes with good schools and the least affordable home prices.”

20. Are Real Estate Brokers An Endangered Species?

“Some 18,000 people gathered in New Orleans this month to look at the future of real estate brokerage. Inside the massive Ernest N. Morial Convention Center booth after booth at the 2014 Realtors Conference & Expo extolled the joys and efficiencies of the new electronic economy and the technologies which can make brokers and lenders more efficient and profitable.”

1. Realtors® Applaud President’s Call for Strict Net Neutrality Rule
“NEW ORLEANS (November 10, 2014) – The following is a statement by National Association of Realtors® President Chris Polychron…”

2. FHA squeezing loans for condos despite surging demand
“Call it the condo conundrum: Demand for condominium units is rising in many urban areas nationwide, according to new real estate industry estimates, yet mortgage financing is getting squeezed for entry-level condo buyers by a key federal agency.”

3. Shopping for a loan? Credit unions can be consumer-friendly option
“Credit unions reached a pair of milestones recently, and that’s good news for home buyers.”

4.  Q&A: HOA rejects late payments, opts to foreclose; is that legal?
“Question: I owe $1,600 in past due homeowner association assessments, but I made payments that haven’t been applied to my account. Through the management company and association attorney, the board placed a lien on my home to foreclose. The attorney says I owe $10,500 and returns my checks, saying he “will not accept a partial payment.” Despite repeated requests, management won’t provide my payment history and an accurate line-by-line accounting of what I owe. When the board ordered management to provide each owner’s payment history with monthly statements, the company owner threatened to sue. Their signed contract says management “owns” the right to provide titleholder “payment history statements and accountings for a fee.” The board signed that contract making owners hostage to management fees for crucial things like owner payment history. Meanwhile I’m facing foreclosure, and no one will talk to me or accept my payments. Do I have any rights?”

5. Rich people are splurging on million-dollar homes again. Here’s why.
“Want to get a good rate on a new mortgage? Two tips: Be wealthy, and borrow more.”

6. Alternative mortgages making a comeback
“Repairs to Edward and Caryn Maldonado’s second home in Northern California cost a lot more than they expected. They bought the three-bedroom fixer-upper to give their daughter a place to live while attending college, saving money on rent.”

7. JPMorgan Cuts More Mortgage, Card Jobs as Revenue Drops
“JPMorgan Chase & Co. (JPM) expects to eliminate 8,000 more jobs this year in mortgage and community banking than it forecast 20 months ago as profit and revenue from the businesses drop.”

8. Hedge-Fund Guys Have Foreclosure Fatigue
“One of the most important ways to strengthen the U.S. housing recovery is to get distressed properties into financially stronger hands. Shortly after the financial crisis began, institutional investors started snapping up foreclosed homes. These buyers, according to RealtyTrac, are entities that buy more than 10 properties in a calendar year. Blackstone Group has been among the most active, acquiring more than $20 billion of foreclosed properties, then making necessary repairs and renting them out.”

9. Homebuilders: Just one in six housing markets back to normal
“Markets in 59 of the roughly 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the third quarter of 2014, according to the National Association of Home Builders/First American Leading Markets Index.”

10. State Marijuana Laws Don’t Protect Your Property
“Here’s the thing about marijuana laws: Federal trumps state. So even though 23 states and the District of Columbia have legalized medicinal pot use — and four states have OK’d recreational use — the federal government still says marijuana is illegal. That means landlords and property managers in legal-pot states shouldn’t feel completely safe allowing tenants to smoke on the premises, NAR Senior Policy Representative Megan Booth said during the “Medical Marijuana and R.E.” session at the REALTORS® Conference & Expo in New Orleans.”

11. Monday Morning Cup of Coffee: What GOP control means for housing
“Monday Morning Cup of Coffee takes a look at news crossing HousingWire’s weekend desk, with more coverage to come on bigger issues.”

12. Freddie Mac CEO: We’re studying alternatives to FICO
“The chief executive officer of the government-sponsored enterprise, Freddie Mac, is known as a turn-around guy for good reason. While previously CEO of E*TRADE Financial, Donald Layton recapitalized the firm and left it in good standing.”

13. Fannie Mae: Consumer confidence in housing hits “all-time high”
“Americans’ view of the future of housing and their financial prospects continues to improve, according to the October 2014 National Housing Survey from Fannie Mae.”

14. Realtors forecast more home sales but higher mortgage costs in 2015
“NEW ORLEANS — The prospect of higher mortgage rates in 2015 won’t put the brakes on home sales, Realtors hope, provided that lenders loosen their purse strings.”

15. Bank of America Said to Make New Pitch to SEC for Relief
“Bank of America Corp. is making new efforts to resolve a stalemate at the U.S. Securities and Exchange Commission that is holding up a final piece of the lender’s record $16.7 billion toxic-mortgage settlement, two people familiar with the matter said.”

16. REAL ESTATE: Study unveils consumers’ dream house
“Homebuyers might argue that some of their best chances to snag a dream home in the new millennium are still with us.”

17. The steady decline of all cash buyers: Investors pulling back but all cash sales still remain elevated. Fewer distressed sales means less opportunities for good deals.
“Never in the history of U.S. home sales have we had institutional investors so involved in the single family home market. In many areas once the bubble popped, we had big and small investors swallowing up over half of all sales for many years. The deals are now harder to find and investors are pulling back in a big way. We also have fewer distressed properties on the market so the properties that do make it to the “for sale” section tend to have more wiggle room in terms of sellers being resistant to lowering prices. For example, back in 2009 nearly 50 percent of all sales were of the distressed variety nationwide. Today, it is slightly below 10 percent. It is a good thing to have fewer distressed properties out in the market. But what happened over the last decade is many of the 7,000,000 foreclosures shifted from individual families into the hands of large and small investors. This is how we have a very large swing to renting households. It might be useful to take a deep look at all cash sales today.”

18. Are Car Loans The Next Lending Boondoggle?
“Car loans are easy to get but mortgages are tight, at least according to a lot of chatter and complaint. But how can that be when money is money, home values are generally rising and unless you own a rare model collectible cars are a depreciating asset?”

1. Why voters hate the Obama economy
“Americans are deeply dissatisfied with President Obama’s economy.”

2. Mortgage credit availability drops again
“Mortgage credit availability dropped in October according to the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association.”

3. U.S. justices wrestle over homeowners’ bid to rescind mortgage
“Nov 4 (Reuters) – The U.S. Supreme Court on Tuesday appeared conflicted on how to decide which process struggling homeowners need to follow if they want to back out of mortgages from lenders they accuse of failing to follow a federal “truth in lending” law.”

4. Does a GOP Senate Victory Mean Trouble for the Fed? (VIDEO)U.S. Deficit Decline to 2.8% of GDP Is Unprecedented Turn
“If the U.S. Senate experiences a Republican takeover on Election Day, the Federal Reserve could face increased scrutiny. WSJ’s Victoria McGrane and Simon Constable discuss.”

5. U.S. Deficit Decline to 2.8% of GDP Is Unprecedented Turn
“Robust economic growth has helped push the U.S. budget deficit down to the lowest level since 2008, marking the sharpest turnaround in the government’s fiscal position in at least 46 years.”

6. Baby Boomers plan to upsize, not downsize, if they move at all
“The iconic suburban, single-family American home isn’t going anywhere – and neither are their Baby Boomer owners. Contrary to common belief, the post-World War II generation will not be trading home ownership for renting, suburbs for cities, or yards and gardens for more maintenance-free living.”

7. Purchase Apps Up, Refis Down in MBA Weekly Survey
“Nov. 5, 2014–MBA Staff
Overall mortgage applications fell from one week earlier despite an uptick in purchase applications, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending October 31.”

8. CoreLogic: ‘Clear Bifurcation’ in Home Price Growth
“Nov. 5, 2014–Sorohan, Mike msorohan@mba.org
CoreLogic, Irvine, Calif., said home prices rose by 5.6 percent year over year in September and said national home prices are expected to slow to a 5 percent rate by next year.”

9. Rent Growth Vs. Job Growth Vs. Pipeline
“Nov. 5, 2014–Tucker, Michael mtucker@mba.org
Job growth is the strongest driver of apartment rent growth, but the supply pipeline–and renter demand–also hold a powerful pull on rent trends, analysts say.”

10. Goldman Sachs: Do these charts show housing heading for a bubble?
“In a note to clients, Goldman Sachs (GS) looks asset prices in housing and equity markets, given that equity markets are back at near-historic highs and some are sounding the alarm about a potential housing bubble.”

11. US Housing Rebound Puts Spotlight on Real Estate
“With a US housing recovery in full swing, this may be a good time for investors to consider securities backed by residential real estate. We think they’re an attractive way to diversify exposure to high-yield bonds and other risk-seeking assets.”

12. 3 lessons learned from the mortgage rate drop
“Mortgage rates are back to the highest level in a month, and if news from the U.S. economy stays positive, they could edge ever higher. While the brief drop a few weeks ago, due to concerns over global economic growth, may already seem like a distant memory, we should take a hard look back nonetheless.”

1. Incoming MBA Chair Sets Sights On Attracting First-Time Buyers
“Is it finally time to restore some balance to the mortgage market so more first-time homebuyers have access to credit? The leadership at the Mortgage Bankers Association thinks it is. And Bill Cosgrove intends to make the return of the first-time homebuyer his primary focus as the MBA’s incoming chairman.”

2. Why Republicans won’t enact housing-finance reform
“WASHINGTON (MarketWatch) — With Republicans expected to strengthen their position in Washington this election, the party has an opportunity to advance its agenda for a key economic sector: the housing market.”

3. What final mortgage rule may mean for housing market
“In late October, six U.S. government agencies finalized a rulerequiring lenders that bundle and sell mortgages as securities to retain ownership of a portion of those loans – a way to provide accountability.”

4. Zillow: Millions of potential houses lost to “doubling up”
“It’s not just millennials that are moving back in with mom and dad. The number of Americans living with roommates or adult family members jumped to more than a third of U.S. adults in 2012, up from 27.4% in 2006, a new report from Zillow said.”

5. Nobody Mourns Death of QE as Treasuries Prove Insatiable
“Even with the end of unprecedented bond purchases from the Federal Reserve, demand for U.S. Treasuries looks as strong as ever.”

6. US Construction Spending Down for Second Month
“U.S. construction spending fell for a second straight month in September as a slight rebound in housing was offset by further declines in nonresidential building and in government projects.”

7. Freddie Mac: Cash-Out Refis Double in 3Q
“Nov. 4, 2014–Sorohan, Mike msorohan@mba.org
Freddie Mac, McLean, Va., said the share of borrowers tapping their equity by cashing out at the time of refinance doubled in the third quarter from a year ago, a result of broad-based house price appreciation.”

8. Why GSE support of low-down payment mortgage is not bad
“Not everyone in the industry is on board with the Federal Housing Finance Agency’s recent move to encourage lenders to issue mortgages with down payments as low as 3% due to concerns that it would lead to more defaults.”

9. Here’s the status update for the top 5 housing markets
“The housing market remains on edge heading into the rest of 2014 as broad-based demands challenges remain an issue.”

10. Mortgage credit availability drops again
“Mortgage credit availability dropped in October according to the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association.”

11. 10 Reasons Why Your Home Isn’t Selling
“Wondering why your home is still sitting on the market after weeks-or even months-of showings? Can’t figure out why your open houses are well-populated but nothing ever comes of them? Or maybe no one is coming to your open houses at all?”

12. REAL ESTATE: Apartment rent on the rise
“Rent has been on the rise in every market across the U.S., and the apartment scene in the Inland area is no exception.”

13. Mortgages: Do We Need Inflation?
“Real estate needs a pick-me-up, something of a surprise considering that home values remain below 2007 prices and mortgage rates continue to hover around 4 percent. Bargain prices and discount mortgage rates should result in soaring sales but that isn’t the case: Existing home sales trail 2013 levels and sales to first-time buyers are well-below historic norms, a real red flag.”

14. The Biggest Drag on Homeownership: Down Payments or Debt?
“RealtyTrac recently analyzed affordability in more than 500 counties nationwide, looking at the impact of lowering the down payment for conventional loans (those that can be sold to Fannie Mae and Freddie Mac) from the traditional 20 percent to as low as 3 percent — as has been suggested recently by FHFA director Mel Watt as a way to ‘increase access for creditworthy but lower-wealth borrowers.'”

1. NAR Annual Survey Reveals Notable Decline in First-time Buyers

“WASHINGTON (November 3, 2014) – Despite an improving job market and low interest rates, the share of first-time buyers fell to its lowest point in nearly three decades and is preventing a healthier housing market from reaching its full potential, according to an annual survey released today by the National Association of Realtors®. The survey additionally found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent.”

2. Deflation is a growing possibility: Bill Gross

“(Reuters) – Famed bond investor Bill Gross on Monday warned that deflation remained a growing possibility despite aggressive monetary policies by central banks around the world.”

3. Despite equity boom, many homes remain seriously underwater

“The equity boom, which has added an estimated $1.6 trillion to the personal net wealth of American homeowners in the last year, has slowed dramatically. It’s not over by any means. It has just lost some of its previous pep.”

4. Agents, lenders fill niche as Chinese money floods housing market

“When Alisha Chen first got into real estate 10 years ago, she didn’t really plan on becoming a gatekeeper for a global housing market.”

5. More Americans Are Preferring the Lease to the Mortgage

“THE homeownership rate in the United States plunged during the Great Recession. Many families lost their homes as prices collapsed and unemployment rose.”

6. Taxpayers could again be stuck with mortgages

“Say we didn’t hear that. Say we didn’t hear that rules for mortgages guaranteed by the taxpayers are going lax once again.”

7. 6 housing boomtowns that haven’t come back

“They were the boomtowns of the Great Housing Bubble, Sun Belt meccas for thousands of families wanting to live the American Dream on easy credit and little money down.”

8. Why more liberal cities have less affordable housing

“Derek Thompson of The Atlantic has an interesting article covering some of the reasons why, despite their ideological commitment to helping the disadvantaged, more liberal cities tend to have less affordable housing…”

9. Construction spending declines for second month

“For the second month in a row construction spending took a downturn, dropping 0.4% in September after August’s 0.8% drop.”

10. Zillow: Millions of potential houses lost to “doubling up”

“It’s not just millennials that are moving back in with mom and dad. The number of Americans living with roommates or adult family members jumped to more than a third of U.S. adults in 2012, up from 27.4% in 2006, a new report from Zillow said.”

11. Monday Morning Cup of Coffee: Credit positive in HFA risk retention exemption

“Monday Morning Cup of Coffee takes a look at news crossing HousingWire’s weekend desk, with more coverage to come on bigger issues.”

12. TEMECULA WINE COUNTRY: Proposed housing developments causing a stir

“Developers have created a stir in the Temecula Valley Wine Country, proposing to build hundreds of homes among the vines after Riverside County adopted a plan emphasizing entertainment, winemaking and growing grapes.”

13. LAKE ELSINORE: City may allow lakeshore home construction

“It would be the ideal getaway pad – a cozy cottage with a picture window overlooking the lake, a patio so close to the water that one could hear ripples licking the beach sand. A spot to sip a cabernet as the sun slips behind the mountains to the west.”

14. Buyer traffic slows down and the great housing standoff: Buyer and seller traffic declined substantially to start the fall real estate season.

“The latest figures from the National Association of Realtors show that both buyer and seller traffic declined substantially to start the fall selling season. The assumption was that the mania of 2013 would carry forward and slapping on a faux hardwood floor would suddenly add $50,000 in value to your crap shack. This lipstick on a pig trickery is not getting the mileage it did in 2013 when people were full on delusional about buying housing, even though volume was incredibly low. The current meme that is now floating is one of “well you missed out in 201x to buy and are now priced out!” Ironically these people are not out in the market buying today as you would expect if they truly believed in the mantra that they keep preaching. In this housing market, timing and luck intertwine with speculation. There are many factors to examine including structural, location, opportunity costs, and mobility. There is a clear demand for rental housing and this has pushed rental prices higher although we are also seeing a limit here as well. The NAR reporting on a slow start to the selling season this fall signifies what we already know. There is a standoff going on in the current housing market.”

15. Five States Account for 44 Percent of 12-Month Foreclosure Sum in September

“Just as they did in August, the same five states accounted for nearly half of all completed foreclosures in the U.S. for the previous 12-month period, according to CoreLogic’s September 2014 National Foreclosure Report released last week.”