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Real Estate News 11.26.2014

1. Pending Home Sales Slow in October but Remain Higher Than a Year Ago

“WASHINGTON (November 26, 2014)—Pending home sales declined in October but remained at a healthy level of activity and are above year-over-year levels for the second straight month, according to the National Association of Realtors®.”

2. Commercial Real Estate Demand is Holding Steady Despite Overseas Concerns

“WASHINGTON (November 24, 2014) – Despite a slowing global economy, forward economic momentum in the U.S. should keep commercial real estate activity on firmer footing, according to the National Association of Realtors® quarterly commercial real estate forecast.”

3. Regulator OKs some Fannie, Freddie foreclosure buybacks at fair value

“The federal regulator overseeing Fannie Mae and Freddie Mac will now allow certain foreclosed borrowers to buy back the homes they lost — so long as they pay the full current value of the property.”

4. Loan limits raised in four California counties by Fannie, Freddie

“In the realm of mortgages backed by Fannie Mae and Freddie Mac, California tends to fall into two categories — high-cost counties where eligible single-family home loans can’t be higher than $625,500 (Los Angeles, Orange) or those with the standard limit of $417,000 limit (Riverside, San Bernardino).’

5. High-end home sales are surging in Southern California

“By most measures, the housing market these days is a bit sluggish. Prices are flat. Sales are drooping. A lot of people are priced out.”

6. Excessive regulation of mortgage lending drags down bank profit

“Bank earnings climbed to $38.7 billion in third quarter 2014 as institutions saw jumps in trading and other revenue, according to the latest report released today by the Federal Deposit Insurance Corp.”

7. Moonlighting No Help to Americans Seeking to Buy a Home

“Yael Ishakis, a loan officer for First Meridian Mortgage, rejected an application three weeks ago from a woman who had a high credit score and a 20 percent down payment.”

8. Higher fees proposed for FHA mortgages

“There is a key provision buried in the Transportation, Housing and Urban Development and Related Agencies Appropriations Act for Fiscal Year 2015 that if implemented, is causing lenders to be concerned about the potentially costly impact it could have to them.”

9. U.S. economy resilient in Q3 as global growth cools

“(Reuters) – The U.S. economy grew at a much faster pace than initially thought in the third quarter, pointing to strengthening fundamentals that should help it weather slowing global demand.”

10. FHFA: Home prices absolutely flat in September

“Home prices were absolutely flat in September, following a weak August, according to the Federal Housing Finance Agency.”

11. Refinancing Boom Exposing Risks in U.S. Property Bonds

“A $40 million penalty wasn’t enough to keep the owner of San Francisco’s Parkmerced apartment complex from the chance to lock in record-low interest rates and take advantage of the property’s $1.5 billion value.”

12. Chart of the Week: Growth in Housing Markets

“Nov. 26, 2014–Fisher, Lynn lfisher@mba.org; Kan, Joel jkan@mba.org
Recent housing indicators have pointed to growth in the housing market. These developments are likely a result of broader economic growth in the U.S. that is gaining momentum, along with employment conditions secure enough that households are starting to reenter the housing market.”

13. Apartments on Pace for Record-Breaking Year

“Nov. 26, 2014–Tucker, Michael mtucker@mba.org
U.S. multifamily investment could surpass 2007’s record this year, exceeding $105 billion, reported CBRE, Los Angeles.”

14.  BofA’s $16.65 billion toxic mortgage settlement gets green light

“The record-setting settlement between Bank of America (BAC), the U.S. Department of Justice, certain federal agencies and six states to resolve claims over toxic residential mortgage-backed securities has cleared all of the regulatory and legal hurdles and is now finalized, according to a new report from Bloomberg.”

15. Freddie Mac: Rates stay frozen heading into holidays

“Mortgage rates remained around 4% as America heads into the holidays, the latest Freddie Mac Primary Mortgage Market Survey found.”

16. Mortgage lending reverses yearlong trend

“Mortgage originations reversed a four-quarter trend in the third quarter, rising for the first time in a year, according to the Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York.”

17. Jobless claims jump 21K in one week

“There were 313,000 initial jobless claims in the week ending Nov. 22, a dramatic increase of 21,000 for the week before.’

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Real Estate News 11.18.2014

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.”

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Real Estate News 11.10.2014

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?”

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Real Estate News 11.5.14

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.”

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Real Estate News 11.4.14

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.'”

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Real Estate News 11.3.14

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.”

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1. Will this get millennials to buy homes?
“One Wall Street firm has an idea that’s raising eyebrows: forgive some student debt for first-time homebuyers.”

2. Baby Boomers say they aren’t moving out of their homes
“Instead of flocking to sunny beach havens or downsizing to a condo in the city during their retirement years, a majority of Baby Boomers say they’re just going to stay put in their old home.”

3. Homes for the homeless…inside billboards
“Billboard ads are expensive to construct, maintain and rent, but they don’t serve any functional purposes — so Michal Polacek redesigned them to house the homeless.”

4. Here’s why falling home prices is not good news
“As someone who has been in and around the housing and mortgage servicing industries for as long as I have, I am always on the lookout for articles and other information that discuss the condition of the economy in general and the housing market in particular. Not being shy to enter a debate on these subjects, I was interested to read a recent article published in Scotsman’s Guide, “As home values moderate, fears of bubble deflate” — Catchy, if not inaccurate.”

5. Freddie Mac: Homeowner demand for home equity loans doubles
“Homeowners are taping into their home equity at double the pace due to continual home price increases, pulling more borrowers out from underwater, Freddie Mac’s third-quarter refinance report said.”

6. Fannie, Freddie to take on more credit risk
“Proposals to lower the minimum down-payment on Fannie Mae and Freddie Mac-backed mortgages at the same time as reducing banks’ exposure to put-back risk may help accelerate the planned modest loosening in mortgage credit conditions.”

7. Blame the fall in homeownership on Generation X: Why did the homeownership rate fall so dramatically for those 35 to 44?
“We’ve all heard about the broke Millennials living at home with mom and dad unable to move out into a very expensive rental.  For years, we’ve been told that somehow this young group of people would represent some pent up demand to buy homes.  This demand never materialized.  Instead, you have tight inventory in certain markets being fought over by investors and those willing to pay current prices while stretching their budgets.  Yet volume remains incredibly pathetic.  The homeownership rate has fallen dramatically and some point the blame to the Millennials.  But as it turns out, the big drop has come from those 35 to 44.  Generation X overall has been a massive drag on the housing market.  The young are simply not buying homes like they once did and many are opting into the rental market.  So how big of a drag is Generation X on the housing market?”

8. Despite Q3 Decline, Zombie Foreclosure Problem Lingers In Many Areas
“While zombie foreclosures in the U.S. declined overall in the third quarter, they continue to be a problem in some areas, according to RealtyTrac’s Q3 2014 Zombie Foreclosure Report released earlier this week.”

9. Report: Consumer Confidence Recovers in October
“Consumer confidence bounced back in October, thanks to a sharp rebound in Americans’ outlook for the economy.”

10. Freddie Mac 2014 Third Quarter Refinance Report
“MCLEAN, VA–(Marketwired – Oct 31, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its third quarter 2014 quarterly refinance analysis, showing the share of borrowers who are tapping their equity by cashing out at the time of refinance has doubled from the same quarter last year as a result of broad-based house price appreciation. However, the dollar volume remains very low at an estimated $8.0 billion.”

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Real Estate News 10.30.14

1. US economy chugging along at 3.5% growth

“Gross domestic product increased 3.5% between July and September, according to the U.S. Commerce Department. It exceeded analysts’ expectations and offered more proof of an economy gaining momentum.”

2. Rents are soaring — and so are evictions

“In cities across the United States, millions of people will be kicked out of their homes this year.”

3. Fed ends 6-year effort to stimulate economy

“The Federal Reserve announced the end of its bond-buying program Wednesday, marking the close of a six-year effort to stimulate the economy.”

4. Pending Home Sales Hold Steady in September

“WASHINGTON (October 27, 2014) – Pending home sales rose slightly in September and are now above year-over-year levels for the first time in 11 months, according to the National Association of Realtors®.”

5. U.S. jobless claims rise, but underlying labor market trends firming

” (Reuters) – The number of Americans filing new claims for unemployment benefits rose for a second straight week last week, but remained at levels consistent with a firming labor market.”

6. Mortgage rates increase from 2014 low, Freddie Mac says

“Mortgage rates rose this week from their lowest point in 2014, but lenders still offered a 30-year fixed loan below 4%, according to Freddie Mac’s weekly survey.”

7.Apartment developer sets sights on young families of modest means

“While many Southern California apartment builders are racing to attract hip, single urbanites with lots of cash, one Los Angeles developer is taking a different tack and pursuing young families of more modest means.”

8. Home prices flat in Southern California, Case-Shiller Index says

“A key measure of home prices out Tuesday suggests the California housing recovery has stalled, at least for now.”

9. Fed declares economy strong enough for bond-buying stimulus to end

“In the dark days of the 2008 financial crisis, the Federal Reserve began buying tens of billions of dollars in bonds each month in a controversial, last-ditch effort to stimulate the economy.”

10. U.S. loan applications to buy homes lowest since February: MBA

“(Reuters) – U.S. mortgage applications to buy homes fell to their lowest level last week since February as interest rates on 30-year home loans edged up from the previous week’s 16-month trough, an industry group said on Wednesday.”

11. CORRECTED-S&P in settlement talks with regulators over mortgage securities

“Oct 29 (Reuters) – The parent of Standard & Poor’s on Wednesday said it was in “active” settlement talks with federal and state regulators over its ratings on six commercial mortgage-backed securities.”

12. Is the US heading toward another housing bubble?

“New federal mortgage regulations don’t require significant down payments. And that’s only inviting a repeat of the 2008 financial crisis.”

13. Borrowers find refuge in nonbank mortgage loans

“Nonbank lending is growing as homebuyers rejected by big banks turn toward non-QM loan options.”

14. Jobless claims tick up by 3,000 filings

“Although initial jobless claims ticked up by 3,000 filings to 287,000 for the week ended Oct. 25, levels still remain at historic lows, according to the latest jobs report from the U.S. Department of Labor.”

15. Detroit’s ‘Blight Bundle’ of 6,000 Foreclosures Goes to a Casino Developer

“The identity of the sole bidder in the auction to sell more than 6,000 of Detroit’s foreclosures is no longer a mystery. Herb Strather, a local casino and real estate developer, won the lot for just under $3.2 million. “This is more than just an acquisition of parcels. It’s an opportunity to redevelop the city I was born in and I plan to die in,” Strather said in an interview.”

16. Homeownership in America Has Collapsed—Don’t Blame Millennials

“The U.S. homeownership rate has fallen to a 19-year low. Why?”

17. This Has Never Happened Before Without A Massive Bubble Bursting

“Back in June we first observed that “America’s Most Important Housing Market Signals A Red Alert For Housing Bubble Watchers” and showed the following chart…”

18. PROPERTY TAX: Why Inland homeowners might see higher bills

“Chances are, California homeowners are finding they owe more when they get this year’s property tax bill.”

19. Rental rates are outpacing wage growth: What are the implications of rising rents when wages are simply not keeping up?

“There are bigger implications to the economy when rental rates are increasing at a rate faster than wage growth.  This is important because we have added 7 million renting households in the last few years.  For the moment, it simply looks like more money is going to be funneled into the housing market versus other segments of the economy.  If your rent went up by $100, that is $100 that is not being spent on other sectors of the economy.  Amazon already showed some hints that consumers are looking tapped out.  Of course the holiday spending orgy is around the corner so we shall see.  Falling gas prices help a bit but for consumers, housing is the biggest monthly line item expense.  Landlords like home sellers are going to charge as much as they can.  And with many homes now being owned by large investors, we are seeing steady rent increases in many markets.  How far up can rents go?  For rental rates, you are capped by what local area households can pay from actual income.  It might be useful to examine the rate of increase between wages and rents.”

20. Can ‘Lower Wealth Borrowers’ Save Real Estate?

“We’re soon going to help “lower wealth borrowers” by making mortgages available with  just 3 percent down. That’s the word from Mel Watt, director of the Federal Housing Finance  Agency.”

21. Completed Foreclosures, Inventory Way Down in September

“Foreclosure inventory and the number of completed foreclosures nationwide both saw significant year-over-year declines in September, according to CoreLogic’s September 2014 National Foreclosure Report released on Wednesday.”

Posted on

Real Estate News 10.09.2014

1. 5 things to consider before tapping your home for cash
“During the housing bust, many homeowners were cut off from a popular source of funds: their homes.”

2. Drop in jobless claims points to labor market strength
“(Reuters) – The number of Americans filing new claims for unemployment benefits fell last week to nearly its lowest level since before the 2007-09 recession, a sign of growing steam in the U.S. labor market.”

3. Southern California office leasing market boosted by job growth
“Job growth in Southern California finally produced a robust quarter of leasing for office landlords, who were able to fill long-vacant space and push up rents.”

4. Suit asks why U.S. bailout of AIG wasn’t more generous
“The trial pitting a fallen financial titan against an array of former high government luminaries provides a through-the-looking-glass view of the financial credit crisis of 2008 — a view that only makes sense on Wall Street.”

5. U.S. Mortgage Application Volume Up
“The average number of mortgage applications for the week ended Friday rose 3.8% from the week earlier, according to the Mortgage Bankers Association weekly survey.”

6. Why Getting a Mortgage Will Remain Hard for at Least 3 More Years
“NEW YORK (TheStreet) — Americans will likely have to wait at least three more years before it becomes any easier to get a mortgage.”

7. Rebirth of housing market calls for moving past Fannie and Freddie
“This fall marks the seventh anniversary of the federal government’s move to take conservatorship of Fannie Mae and Freddie Mac, and the nation should thank the government-sponsored enterprises (GSEs) for restoring confidence and liquidity in mortgage finance during a time of crisis. Without their intervention and involvement, our nation’s housing system would have fared far worse than what we experienced.”

8. Op-Ed: Loan File Size Increasing at ‘Alarming’ Rate
“Lenders are gathering an unprecedented number of required documents to originate mortgage loans and comply with new regulatory requirements. To be sure, the regulatory environment saps efficiency and profitability at the same time that loan volumes are falling.”

9. Real Estate Investment Up; Led by NYC–Again
“New York remains the world’s largest real estate investment market for the fourth consecutive year. Volumes there rose nearly 11 percent to $55.4 billion–7 percent of global market share–in the 12 months leading up to June. Second-place London, which registered $47.3 billion of investment, closed the gap on New York thanks to a 40.5 percent increase in activity over that year, becoming the largest global market for cross-border investors. With $35.5 billion in investment, Tokyo reclaimed the third position from Los Angeles ($33.1 billion), which dropped to fourth while San Francisco ranked fifth with $23.8 billion invested.”

10. Find out why West beats East in home price appreciation
“It used to be gunfighters would brag about being the fastest gun west of the Mississippi River, and now it’s all about home price growth.”

11. Auction.com launches Auction Finance to spur investor activity
“Seeking to expand on its pool of potential real estate buyers, Auction.com has created a new division to help commercial and residential real estate investors obtain financing.”

12. Freddie Mac: Mortgage rates drop near yearly lows
“Mortgage rates slightly fell back down following the Federal Reserve’s latest tapering announcement, dropping down near their yearly lows, Freddie Mac’s Primary Mortgage Market survey results showed.”

13. Mortgage applications for new homes flat in September
“Mortgage applications for new home purchases remained unchanged relative to the previous month, according to the Mortgage Bankers Association Builder Application Survey data for September 2014.”

14. Debt among youngest, oldest shifted dramatically in past decade
“A new TransUnion study found that the consumer loan wallet – the composition of loans that people typically carry – has materially changed for both the youngest and oldest segments of the population during the last decade.”

15. Freddie Mac Expands Into Small Apartment Mortgages
“Freddie Mac is building a business to originate small apartment loans, between $1 million and $5 million, as part of its mandate to support affordable housing.”

16. If Congress Won’t End GSE Conservatorship Soon, FHFA Can
“Last week, a D.C. District Court Judge struck down a lawsuit brought by shareholders in Fannie Mae and Freddie Mac who had been seeking to stop the government from taking the profits from the two agencies. The suit will be appealed, but setting aside the legal disputes for a moment, the U.S. government still has a big issue to confront: what to do about the two government-sponsored enterprises.”

17. Taper Tantrum Erased With Mortgage Yields at 16-Month Low
“In the market for U.S. mortgage bonds, it’s almost as if the turmoil that became known as the taper tantrum never happened.”

18. REGION: Housing boom targets ‘silver tsunami’
“The Inland region’s newest housing boom is being built on its oldest residents.”

19. REAL ESTATE: Slower gains predicted in 2015 for home sales, prices
“Reset, California.

That could be the theme of a real estate forecast that California Association of Realtors chief economist Leslie Appleton-Young delivered Tuesday for 2015, as the real estate industry takes the shape of a more traditional market.”

20. It’s easy to pay someone else’s property tax
“Anybody can pay anyone else’s property tax, and it’s easier than ever with the recently enhanced online system in San Diego County.”

21. Best College Towns for Buying Rentals, Flipping in 2014
“RealtyTrac has ranked the top 10 college towns for buying rental properties, and the top 10 college towns for flipping in 2014. For these rankings, RealtyTrac looked at public four-year universities with a total 2012 enrollment of 20,000 or more based on data from the National Center for Education Statistics and located in counties with an unemployment rate below the national average of 6.2 percent in June 2014.”

22. Boston Broker Sends Agents to Asia to Promote Local Real Estate
“I was interviewing Boston-area broker Tom Truong for an article spotlighting the Boston market for the August issue of RealtyTrac’s Housing News Report when he made this comment that took me a bit by surprise.”

23. L.A. and O.C. least affordable rental markets: Rental market is at odds with weak employment growth and weak income figures.
“It should come as no surprise that the L.A. and O.C. housing markets are the least affordable in the entire nation. That is right, even more unaffordable than San Francisco or New York. Why? Because even though New York and San Francisco have higher rental costs, people make more money. Should be common sense but it should be apparent that people in SoCal like stretching their budgets. It might be the Hollywood allure of “acting” rich instead of actually being wealthy. Fake it till you make it. Hence the broke older homeowners with their boomerang adult-children coming to live back home. Rents are paid by net income. There is no extra mortgage leverage that you can squeeze out of a rental payment. You either make the monthly payment or you don’t. And seeing this data simply confirms that many in SoCal would rather act the role of being rich instead of taking steps to being wealthy.”

Posted on

Real Estate News 9.23.14

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.”