Taxpayers deserve every penny of Fannie and Freddie profits
“FORTUNE — Ralph Nader and New York Times columnist Gretchen Morgenson are usually reliable advocates for the little guy in the face of the enormous power the investor class wields over the American political process. But when it comes to the Treasury Department’s 2012 decision to return all of Fannie and Freddie’s earnings to taxpayers rather than issuing a 10% dividend as originally stipulated, these two are lining up behind wealthy investors.”
MBA Economic/Mortgage Finance Commentary: Low Purchase Originations Expected Despite Steady Economic Growth
“Our forecast reflects economic growth for the next two years at a pace of around 2.5 percent, as households continue to spend and business fixed investment ramps up.”
Pennsylvania’s new lien law could monkeywrench REO sales in 6 waysA new law in Pennsylvania requires that delinquent taxes on one property will create liens on all of owners’ other properties in that county, and real estate agents and lenders are worried it will put a kibbosh on business.
“A new law in Pennsylvania requires that delinquent taxes on one property will create liens on all of owners’ other properties in that county, and real estate agents and lenders are worried it will put a kibbosh on business.”
House vote could sink flood program in sea of red ink
“With a vote to gut flood insurance reforms expected in the House of Representatives as early as this week, the flood policy reform group, SmarterSafer.org urged House members to reject a bill unveiled over the weekend that would repeal key portions of the Biggert-Waters Flood Insurance Reform Act, a move that weakens the National Flood Insurance Program by preserving subsidies regardless of need at the expense of the American taxpayer.”
Why is the Atlanta Fed so bullish?
“The housing market in the Southeast ended 2013 on a somewhat positive note, according to the latest Data Digest, from the Regional Economic Information Network, a part of the Federal Reserve Bank of Atlanta, and 2014 should restart solid after a first quarter falter.”
Commercial real estate expected to progress slowly in 2014
“Commercial real estate should continue to enjoy positive momentum in the next year, but office, industrial and retail growth will remain slow into the first quarter of 2015, according to the National Association of Realtors.”
REAL ESTATE: Las Vegas may be missing key aspects to attracting investors
“Las Vegas should be among the U.S. cities primed for renewed investor interest in commercial real estate, but a new report from a national trade group shows the city may be missing some of the attributes it needs to compete for dollars.”
REAL ESTATE TRENDS FOR 2014
“It’s that time of the year when business experts posture and predict what 2014 will bring. One of the areas that is open to constant debate is the real estate market. Will sales numbers increase? Is inventory going to come back? Will interest rates stay low? The questions abound, and the answers vary from market to market, town to town and state to state. Most agree that we’re headed in a much more positive direction, and we’ve not seen the rising numbers level off just yet.”
$2,500 a month in rent? Sign me up
“Plush gyms. Tony spas. Golf simulators. Private bowling alleys.
There are a lot of Gen-Xers and Millennials who are willing to pay $2,000 to $3,000 a month in rent for tricked out apartments, a growing market that has developers roaming the streets of San Diego, looking for places to build.”
Will condo conversions rise in 2014?
“No. With home sales currently at their three year low, neither the forces of demand nor supply are strong enough to resuscitate the condo conversion craziness that occurred prior to the burst of the housing bubble in 2006.”
Polar Vortex hits California housing market: California home sales fall over 10 percent on an annual basis. 2014 off to a drought in real estate.
“The blame game is now out in full force for the slow start to housing in 2014. Nationwide, we’ve been hearing about the polar vortex impacting real estate. Unfortunately it cannot be applied to California given that we’ve been in a full on drought. Winter never came to SoCal. I can’t remember a year with such little rain but hey, who needs water when you can purchase a World War II Cracker Jack box for $750,000 right? Like in most manias, the folks on the ground are the last to get the memo and many are still going out for ARMs to stretch their already impaired budgets. In 2004 one thought that was inescapable to me was the incestuous nature of real estate that was unfolding. That is agents, brokers, banks, builders, home owners, home buyers, Wall Street, tax collectors, and everyone tied to the machine got a mega-boost thanks to ever accelerating prices hikes. Few thought about what happens when a reversal occurred especially since incomes were not going up. The same has happened over the last few years in more subtle ways. The economy is weak and a big boost has come from home prices going up. Yet much of this is now driven by Wall Street and hedge funds. Housing is off to a slow start in 2014 and you can’t blame it on the polar vortex, especially here in a sunny and drought hit California.”
Qualified Mortgage Guidelines Haven’t Lowered Risk
“Last month’s implementation of the Consumer Financial Protection Bureau’s (CFPB) qualified mortgage (QM) guidelines did little to stem the rise of mortgage risk across the nation, according to the latest from the American Enterprise Institute (AEI).’
New Regulations for Fannie Mae and Freddie Mac
“Per new regulations finalized last week, the GSEs will be required to file suspicious activity reports (SARs) directly with the Financial Crimes Enforcement Network (FinCEN) rather than through their own regulator.”
Black Knight’s Home Price Index Shows Increase
“The Data & Analytics division of Black Knight Financial Services released on Monday its latest Home Price Index (HPI), noting an increase of .1 percent in home prices to $232,000 for the month of December.’