Category: Around the Web

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.’

Retail, jobs data show struggling economy
“Slumping for a second month, retail sales dropped 0.4% in January, missing analysts’ expectations of a 0.1% decline, and casting gloom over forecasts for economic growth.”

Cut the cost of home maintenance
“Homeowners once had to make a choice: the beauty of genuine wood and stone, or the easy maintenance of a man-made alternative.”

Bay Area home sales tumble last month; prices fall from December
“San Francisco Bay Area home prices took a seasonal dip in January from a month earlier, while sales plunged to a six-year low for the month as high prices and tight inventory handcuffed buyers.’

New Home Sales Surge in January After Two Lame Months
“New home sales jumped 35% in January after declining over the two previous months, according to a Mortgage Bankers Association survey of mortgage companies owned by homebuilders.”

Wells Fargo edges back into subprime as U.S. mortgage market thaws
“(Reuters) – Wells Fargo & Co, the largest U.S. mortgage lender, is tiptoeing back into subprime home loans again.”

HUD Looks to the Courts for Guidance on Eminent Domain
“Department of Housing and Urban Development Secretary Shaun Donovan kept his carefully neutral stance this week on the potential use of eminent domain to restructure underwater mortgages.”

Foreclosure Auctions Climb in 27 States as U.S. Filings Decline
“Scheduled home auctions rose last month from a year earlier in 27 states, bucking a decline in foreclosure filings across the U.S., RealtyTrac Inc. said.”

Bank of America Said to Cut 450 More Mortgage Jobs
“Bank of America Corp., the second-largest U.S. lender, is cutting 450 mortgage jobs from West Coast offices after new loans fell short of internal forecasts, two people with direct knowledge of the plans said.”

Will Shared Appreciation End The Foreclosure Crisis?
“Shared appreciation is an idea whose time may have come. Indeed, it may be the only way for the nation’s banks to avoid still-more losses, additional deficits that could total hundreds of billions of dollars.”

Here’s why you can expect weak home sales in 1Q2014
“There are early signs that housing sales and home prices for the first quarter of 2014 are going to be weak.”

3 signs California housing is on the brink of something huge
“Six years after the financial crisis and California is still feeling the leftover ripple effects of loose lending standards and an overabundance of foreclosed homes. But things are looking up.”

Are we headed toward a ‘retail apocalypse?’
“Retail sales have folded like a cheap lawn chair, posting their worst performance since June 2012.”

Jobless claims back above 8-month average
“At this point the pattern is clear: If it’s good news, it’s credited to the “recovery” but if it’s bad news, it’s the cold weather.”

Ocwen to sell mortgage servicing rights in capital markets
“Ocwen (OCN) is moving forward with plans to package a pool of mortgage servicing rights to sell to investors on the capital markets.”

Bank of America raises affordable housing commitment
“Bank of America Merrill Lynch (BAC) upped its commitment to providing affordable housing in America by more than 25% in 2013.”

South Florida real estate market has international appeal, developers and investors say
“South Florida’s commercial and residential real estate markets remain hot for international investors as well as for homeowners moving from suburbs to downtown cores, panels of industry leaders said Thursday at the Perez Art Museum Miami.”

Blackstone real estate head: no US bubble, EM “very attractive”
“Private equity firm Blackstone Group, which has made big bets on hotels, rental homes and other real estate in recent years, continues to be bullish on the sector.”

Want to Become a Real Estate Investor? Know the Rules
“With interest rates still hovering near all-time lows, and property values in many places improving but still far below 2007 highs, investing in real estate may seem like a smart move—especially for anyone squeamish about investing in the stock market. (A whopping 76% of consumers are saying “no” to equities, according to Bankrate’s latest Financial Security Index.)”

Southern California housing market update: Slowest January for home sales in three years. Median home price back to June 2013 levels.
“The latest housing data highlights a stagnant market in Southern California.  January home sales came in at a three year low logging in 14,471 sales.  With a low number of foreclosure resales now making up the pool of total sold homes, there is little reason to use the excuse that foreclosures are depressing home prices on aggregate.  Home prices retreated back to levels last seen in June primarily because investors are having a tougher find picking out good low priced properties and modestly higher rates are still hurting the market with cash strapped buyers.  The market is caught in a Catch-22; if the stock market goes up this adds fuel for the Fed to retreat from QE and this will likely push rates higher.  If the stock market pulls back, the Fed is likely to dive back in and interest rates are likely to stagnate or fall but investor activity is likely to take a hit.  Yet there is little action to be had overall with such an artificially low amount of inventory and crowding out regular buyers with investors is still common.  It is more likely that we have a month in 2014 with a negative year-over-year median price versus a repeat of 2013.”

Fannie Mae Announces Homebuyer Incentive up to 3.5 Percent Closing Cost Assistance on HomePath Properties in the FirstLook Period
“WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that homebuyers may receive up to 3.5 percent in closing cost assistance when they purchase a HomePath® property in 27 states during the FirstLookTM period. During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase homes without competition from investors. Fannie Mae recently announced the extension of the FirstLook period from fifteen days to twenty days.”

Your Home Isn’t Worth What You Paid For It, Or What You Owe On It
“So you bought a home, poured your savings into a new kitchen, wood floors, and a great big fantastic walk-in shower with these great glass tiles up the wall and this amazing rain shower head that makes you feel like you’re in a spa and.. oops, you may have gone a little overboard.”

It’s Tax Time – What Homeowners Should Know
“It’s tax season, and many Americans are determining whether to file early, file on the April 15 deadline, or file late.”