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Real Estate News 2.25.14

U.S. mortgage applications slip in latest week: MBA
“(Reuters) – Applications for U.S. home mortgages fell, including both new purchases and refinancings, in the latest week, an industry group said on Wednesday.”

Moody’s warns mortgage servicers may turn to offering risky loans
“Feb 26 (Reuters) – Credit rating agency Moody’s Corp warned that mortgage servicers such as Ocwen Financial Corp could be pushed into subprime lending as their core business comes under increased regulatory scrutiny.”

Freddie pushes Mom-and-Pop shops as REO sales slow
“Big institutional investors drove a lot of the housing sales in 2013 – accounting for as much as 40% of all sales in the year.”

Biggest Banks Said to Face Asset Tax in Republican Plan
“The biggest U.S. banks and insurance companies would have to pay a quarterly 3.5 basis-point tax on assets exceeding $500 billion under a plan to be unveiled this week by Congress’s top Republican tax writer.”

NAACP, Casa rally for foreclosure moratorium
“ANNAPOLIS, Md. —The NAACP and Casa de Maryland joined forces Monday night for a rally on Lawyers Mall in Annapolis.”

Don’t Blame Winter Weather For Housing And Economic Problems
“President Obama and many of the nation’s top economists entered 2014 predicting a breakout year for the economic recovery. However, troubles in the housing sector indicate more difficulties and several more years of mediocre growth lie ahead.’

Fugitive mortgage scammer allegedly attacked prosecutor after capture
“DETROIT, Feb. 25 (UPI) — A man convicted in a massive Detroit mortgage scheme assaulted a prosecutor following his capture after eight months on the run, officials say.’

Geithner’s Book to Tackle His Image as Wingman of Wall Street
“Timothy Geithner’s memoir will explain his decisions during the global financial crisis, tackle any misperceptions and describe surviving a political firestorm from Wall Street to Main Street, he said.”

Sage Kotsenburg’s ‘totally dope’ mortgage biz can save you ‘chowsands’
“He’s already won a gold medal. He’s got himself a bacon medal.”

Reports Say Home Prices Lose Momentum
“The good news: home price appreciation had its best year since 2005. The bad news: momentum has apparently slipped away.”

Feb. Consumer Confidence Sees ‘Moderate Decline
“The Conference Board Consumer Confidence Index fell in February after a slight rebound in January.”

Congressional Republicans mull bill to add CFPB oversight
“This week the House will consider a bill designed to bring what supporters say will be more accountability and transparency to a government entity that holds private businesses accountable.”

Now accepting applications: A new word for subprime
“As the market leans more on its mortgage machines, rising mortgage rates and dwindling refinance options are pushing people to turn to a new strategy: subprime.”

Freddie pushes Mom-and-Pop shops as REO sales slow
“Big institutional investors drove a lot of the housing sales in 2013 – accounting for as much as 40% of all sales in the year.”

JPMorgan plans 8,000 layoffs
“JPMorgan Chase (JPM) is expected to reduce employee headcount in mortgages by 6,000 in 2014, in addition to an expense reduction of $2 billion from 2013 to 2014. It’s part of a total predicted reduction of 8,000 jobs, the bank announced in its investor day presentation.”

Toll Brothers earnings surge on higher home prices
“Luxury homebuilder Toll Brothers’ (TOL) first quarter net income ended Jan. 31 totaled $45.6 million, or 25 cents per share, compared to $4.4 million, or 3 cents per share, in the first quarter last year.”

Why is Las Vegas cooling so fast?
“The latest news from DataQuick is that Las Vegas-area homes sold at the slowest pace for a January in five years, as the median sale price dipped month-to-month but remained 22% higher than a year earlier.”

Despite winter storms, 29 markets hit peak
“Single-family properties in all 300 top U.S. market witnessed year-over-year growth, according to the Homes.com December Local Market Index.”

New Home Sales in U.S. Unexpectedly Rise to Five-Year High
“Purchases of new U.S. homes unexpectedly climbed in January to the highest level in more than five years, showing underlying strength in the industry even in the midst of unusually harsh weather.”

Burbank real estate market thrives
“Almost everything is up in Burbank’s real estate market. More homes and condominiums were on sale last month compared to the year prior, more homes sold and median prices continued to climb.”

Market Watch Real Estate: Market neither boom nor bust
“Southwest Florida experienced an unfamiliar new type of real estate market in 2013: a relatively normal one.”

2014 Economic Growth Off to a Chilly Start
“Cold Weather Snap, Other Crosswinds Stifle January Activity”

Freddie Mac Reports Mortgage Portfolio Decrease
“Freddie Mac released its Monthly Volume Summary for January, 2014, noting their total mortgage portfolio decreased at an annualized rate of 1.9 percent in January. Despite a slight uptick in December, 2013, Freddie Mac’s ending balance has been declining since June, 2013.”

Florida’s Consumer Sentiment Sits Tight
“A new report released Tuesday by the Wells Fargo Economics Group noted that consumer sentiment in Florida remained at 78 for the second straight month.”

More Local Markets Experiencing Full Recovery
“Homes.com has released its December Local Market Index, a price performance summary of repeat sales of U.S. properties. The index notes year-over-year gains for single-family properties in all 300 top U.S markets for the ninth consecutive month.”

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Real Estate News 2.25.14

Home prices rose 11.3% in 2013
“U.S. home prices rebounded strongly in 2013, up 11.3% compared with a year earlier, according to a closely watched index.”

‘Window closing’ for housing-reform bill this year, mortgage bankers group chief says
“Time is running short for a housing-reform bill this year, the head of the Mortgage Bankers Association said Monday, adding the Senate only has about a month to act on legislation.”

SunTrust says could face “substantial penalties” in mortgage probe
“Feb 25 (Reuters) – SunTrust Banks Inc said it may attract “substantial penalties” from on an ongoing mortgage-related probe and also disclosed a new investigation by the Department of Justice, according to a regulatory filing late Monday.”

Sub-prise! Mortgages get looser despite tighter regulations
“Concerns that potential mortgage borrowers would be pushed out of the housing market due to new lending regulations and standards are unfounded, according to the latest housing risk briefing from the American Enterprise Institute’s International Center on Housing Risk.”

Investors Hoping Fed’s Punch Bowl Will Stay Longer: BofA
“Bank of America Merrill Lynch has an alternate explanation for today’s stock-market climb back to record highs: hopes of more easy money.”

Community banks drowning in regulations
“Community bank officials are struggling to keep up with mounds of government regulations that went into effect last year and will continue to affect business through 2014 and beyond.”

Americans Still Angry at Banks But Not Likely to Switch: Survey
“Even though nearly eight in 10 Americans feel the nation’s big banks are to blame for the financial crisis of 2008, most would not switch to a credit union or community bank.”

Yellen Seeking New Low-Rate Guidance Can Use Forecasts
“As Janet Yellen seeks to forge a consensus on a new strategy for communicating the Federal Reserve’s intention to keep rates low, she can reach for a six-year-old tool: the Fed’s quarterly forecasts.”

Realogy Holdings closes 2013 with strong earnings
“Realogy Holdings (RLGY), a provider of real estate services based in Madison, N.J., recorded net revenue for the full year 2013 increase 13%, to $5.3 billion, compared to 2012, and a basic earnings per share of $3.01 for the full year.’

You won’t believe what Fannie, Freddie are doing to sell REO
“Fannie Mae and Freddie Mac are offering limited-time incentives in a pair of programs for both real estate agents and homebuyers as the two government-sponsored enterprises are trying to sell some of their REO properties.’

Stonegate Mortgage originations increase 152%
“Stonegate Mortgage Corporation (SGM) recorded a successful fourth quarter and full year due to several strategic acquisitions that helped boost and round out the company’s profit.”

Here are 6 threats to Fifth Third’s mortgage banking operations
“At Fifth Third (FITB), mortgage banking net revenue decreased $145 million for the year ended December 31, 2013, compared to the prior year.”

Why are there more buyers but fewer sales in Phoenix?
“The latest issue of The Wilcox Report to clients shows that there are four reasons the pool of buyers in the Greater Phoenix area is growing, and yet at the same time there are three reasons there has been a slowdown in home sales.”

Prospect Mortgage refunds California homeowners
“Prospect Mortgage reached an agreement with the California Department of Business Oversight, which included refunds to more than 12,000 Californians totaling approximately $1.33 million.”

3 Secrets to Investing in Real Estate
“First, let me tell you a small secret of my own. I expected to write this article in no time flat, highlighting an international real estate investment trust that I’ve owned for many years. I was wrong.”

Freddie Mac Issues Monthly Volume Summary for January 2014
“MCLEAN, VA–(Marketwired – Feb 25, 2014) – Freddie Mac (OTCQB: FMCC) today issued the company’s Monthly Volume Summary for January 2014.”

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Real Estate News 2.19.14

Construction on new homes dives 16% in January
“WASHINGTON (MarketWatch) — Construction on new U.S. homes tumbled 16% in January to a seasonally adjusted annual rate of 880,000, with drops for single-family homes and apartments, according to government data released Wednesday.”

Raising minimum wage would ease poverty but cost some jobs
“Supporters of raising the federal minimum wage to $10.10 an hour say it will increase productivity, lower turnover and increase wages for 28 million workers.”

U.S. mortgage applications fall in latest week: MBA
“(Reuters) – Applications for U.S. home mortgages fell in the latest week, with both purchase and refinancing applications down, an industry group said on Wednesday.”

Mortgage bankers make some history
“Industry’s trade association has never had an Ohioan at the helm, but now two from the state will lead it in back-to-back years”

Make Multifamily the Starting Point for Housing Reform
“Reform of the secondary market for housing finance is a big topic now among think tanks, industry representatives and on Capitol Hill. Most of this discussion has centered on the single-family market, because that is the market that collapsed, helped to precipitate the Great Recession. This recession led to 4 million American families losing their homes, according to RealtyTrac data, and the conservatorship of Fannie Mae and Freddie Mac.”

The hidden catch in the housing recovery
“This year started off with a slight plot twist. After mortgage rates rose most of 2013, 2014 began with a slight drop in rates, although they did not sink back to the levels seen at the beginning of 2013.”

Household Borrowing Rises Most in Six Years in NY Fed Report
“Consumer debt in the U.S. rose last quarter by the most in more than six years as Americans borrowed to buy homes and cars and to pay for education, according to a report by the Federal Reserve Bank of New York.”

Get Ready for a New Onslaught of HMDA Data
“That mammoth spreadsheet of mortgage data from thousands of lenders that you wrestle with every year may get considerably more inclusive.”

Mortgage servicers foreclosing on very different timelines
“A new white paper is highlighting the vast differences in foreclosure timelines at varying mortgage servicers.”

It’s California vs. the Nation in housing affordability
“Although America has 50 states, when you look at housing affordability you can more effectively split the U.S. as California versus everyone else.”

Negative builder news drags on HW 30 for second day
“Stocks were mixed Wednesday at midmorning with several construction and home builders suffering after a down report from the National Association of Home Builders and weak construction numbers for January.”

5 essential rules of real estate
“Spring signals the start of two hallowed seasons: homebuying and baseball.”

Crowdfunding Comes to Real Estate as Websites Seek Small Investors’ Cash
“MANHATTAN — A crop of new real estate startups is turning to crowdfunding as a way to get buildings off the ground.”

Real Estate Matters | How to save money and lower mortgage insurance
“I’m 28-years-old. My wife and I have owned our home for 2.5 years now. When we purchased it, I did not put down 20 percent, so I’m paying roughly $165 per month for mortgage insurance (PMI). If it helps, we do not plan on living in this house forever, but likely for the next five to 10 years. I have a low interest rate on our mortgage of 4.25 percent on a standard 30-year fixed FHA loan. I have a payment schedule set up with Wells Fargo for weekly mortgage payments, with an extra $30 per week to be applied to the principal.”

Real Estate Deals from Prison
“You can buy real estate while you are in prison…you just cannot live at your new property at that time.”

Loan Complaints by Homeowners Rise Once More
“A growing number of homeowners trying to avert foreclosure are confronting problems on a new front as the mortgage industry undergoes a seismic shift.”

Foreclosures, default notices tick up in SD
“Foreclosures and default notices in San Diego County edged up in January, but are still hovering around post Great Recession lows.”

Do banks sense a change in the California housing market? California foreclosure starts up 57 percent last month. Typical California foreclosure process lasts nearly one year and the misconception of middle class.
“It is common knowledge that banks have metered troubled real estate inventory out into the market in a slow drip fashion.  This practice over the years has caused an artificially low supply to be present in the market.  Add into the mix a low rate environment and years of investors buying up properties and you get our current stalemate of a market.  Virtually no one in the press with a voice is even expressing a possibility that prices may sway lower.  The only options making the rounds involve a couple of scenarios where prices will go up slowly in 2014 or prices will move sideways.  No option for a decrease.  This lack of perspective is odd given the resurgence of interest only loans and the fact that a well known bank is dipping back into the subprime market.  One surprising statistic that I did see was the resurgence of foreclosure starts in California.”

Zillow Marks Upward Trend in Mortgage Rates
“Zilllow Mortgage Marketplace, a lending marketplace operated by the home listing website Zillow, announced new mortgage rates Tuesday. Currently, the mortgage rate for a 30-year fixed mortgage is 4.18 percent, according to the release.”

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Real Estate News 2.17.14

Fog over U.S. economy unlikely to lift soon
“WASHINGTON (MarketWatch) — Trying to figure out what the heck is going on in the economy right now is like driving in a fog. You can only see a few yards ahead before visibility ends.”

Finding ways to help young adults make their first home purchases
“WASHINGTON — Parents, grandparents and young adults know the problem only too well: Heavy student-debt loads, persistent employment troubles stemming from the recession, plus newly toughened mortgage underwriting standards are all standing in the way of vast numbers of potential first-time home buyers in their 20s and 30s.”

Title restrictions can scare away buyers, but they have pluses
“Question: We have a detached single-family dwelling on more than five acres of land that we’re having difficulty selling because real estate agents say we have a restriction on our title. We have a homeowners association and board of directors, and that appears to be a problem for some potential buyers. Though we’ve had little to do with our association, we can’t convince buyers it’s OK. They say they “don’t want the hassle.” What exactly is a “restriction” and “deed restricted title?” Can we get it off our house title?”

3 things coming this President’s Day week
“It’s going to be a slow week cut short by the President’s Day holiday, but there are a number of indices coming out this week that should shed some additional light on where the housing market is heading for servicers, lenders and investors.”

Monday Morning Cup of Coffee: Fannie and Freddie investors denied profits
“Monday Morning Cup of Coffee takes a look at news coming across HousingWire’s weekend desk, with more coverage to come on larger issues.”

Is snow a good or bad forecast for housing?
“The weather continues to inhibit every aspect of life — especially in the Northeast. Since the snow is cutting back on the days available to work and produce mortgages in February, it is presenting a risk to the prepayments and mortgage-backed security production, according to a recent report from Bank of America Merrill Lynch (BAC).”

New York Attorney General: Zombie property killer
“New York Attorney General Eric Schneiderman is ready to raze hell over zombie properties infecting the Empire State.’

Mortgage industry employment continues decline
“The Bureau of Labor Statistics’ monthly real estate credit and mortgage brokerage employment statistics through December 2013 shows employment in real estate is declining.”

Washington & Wall Street: The Question Nobody Asked Janet Yellen
“In her first appearance before Congress this week, Federal Reserve Chair Janet Yellen achieved the primary goal of any new Fed chief and avoided any obvious land mines. But what was lacking in the dialogue, both from Yellen and the media, was a serious discussion of what’s next for national economic policy.”

Sales drop, prices jump for metro Detroit real estate market in January
“DETROIT, MI – January marked the 11th straight month that metro Detroit median home sales prices rose by double-digits, climbing 38 percent year-over year to $110,000 according to Realcomp.”

Did Gen-Xers have it harder?
“Millennials are hardly the first generation to graduate into a job-killing economy and a miserable housing market.”

Inside hedge fund pay: $10M for a 10 percent return
“It’s no secret that people can make a lot of money working in finance. Top hedge and private equity fund chief investment officers can earn several billion dollars in a single year—David Tepper of Appaloosa Management earned an estimated $2.2 billion in 2012, for example.”

Stop whining! The US economy is in good shape
“While operating more than an entire percentage point below its potential growth rate, the U.S. economy still raised its business sector employment by nearly 2 million people over the last twelve months.”

Is Gen X ready to retire? Depends who you ask
“Get your happy on. Generation X may be more prepared for retirement than you’ve been hearing.”

Do banks sense a change in the California housing market? California foreclosure starts up 57 percent last month. Typical California foreclosure process lasts nearly one year and the misconception of middle class.
“It is common knowledge that banks have metered troubled real estate inventory out into the market in a slow drip fashion.  This practice over the years has caused an artificially low supply to be present in the market.  Add into the mix a low rate environment and years of investors buying up properties and you get our current stalemate of a market.  Virtually no one in the press with a voice is even expressing a possibility that prices may sway lower.  The only options making the rounds involve a couple of scenarios where prices will go up slowly in 2014 or prices will move sideways.  No option for a decrease.  This lack of perspective is odd given the resurgence of interest only loans and the fact that a well known bank is dipping back into the subprime market.  One surprising statistic that I did see was the resurgence of foreclosure starts in California.”

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Real Estate News 1.31.2014

Sales of $1-million-plus homes went through the roof in California

“In California last year, 39,145 homes were sold for $1 million or more, a six-year high. Celebrities and flippers did their part.”

 

The Rundown: 3 charts that show a recovery stalling

“Retail sales are down, pending home sales are down, and now retail foot traffic is down. But we’re in a ‘recovery.'”

 

Blackstone shows REO-to-rental can be billion-dollar business (nearly)

“Blackstone Group (BX) fourth-quarter earnings came out this morning and show a huge jump in profit compared to last year.”

 

FHA goes full throttle with modernization effort

“As part of its modernization effort, the Federal Housing Administration is accepting more electronic signatures on mortgage-related documents.”

 

CEOs Pledge Help to White House for Long-Term Unemployed

“President Barack Obama is meeting today with chief executive officers of companies from Bank of America Corp. to EBay Inc. who have committed to giving the long-term unemployed a better chance in the hiring process.”

 

Wall Street Bonds Draw Scrutiny Where Subprime Spread: Mortgages

“Mark Takano saw how subprime mortgages devastated his hometown of Riverside, California, after Wall Street helped inflate a housing bubble that burst and left a trail of foreclosures among the worst in the U.S.”

 

U.S. Homeownership Rate Falls on Higher Costs for Buyers

“The homeownership rate in the U.S. declined in the fourth quarter as higher borrowing costs and tight credit blocked many first-time buyers.”

 

HOUSING: Inland home flipping still fashionable in 2013

“Home flipping did not fall by the wayside in 2013, and neither did its profits, a new housing data report by Irvine-based RealtyTrac suggests.”

 

First Estimate for Fourth-Quarter GDP Growth: 3.2%

“The nation’s economy continued to grow in the fourth quarter, helped along by improvements in consumer spending and business investment.”

 

The Real Estate Crystal Ball: What’s on the Horizon for 2014

“The past few years in real estate have been unpredictable. Between high foreclosures one year to low inventory in some major markets the next, it’s hard to tell where the market is going to go.”

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Real Estate News 1.20.2014

U.S. seen on track for best growth since 2005
“WASHINGTON (MarketWatch) — Think the disappointing U.S. jobs report for December has dampened the optimism of economists about the new year? Think again.”

Rates, tight inventory dampen California home sales
“California home sales dipped 5.9% from 2012 to 2013 as the market felt the pinch of tighter inventory levels and higher prices, the California Association of Realtors reported this past month.”

Monday Morning Cup of Coffee: Deutsche Bank posts $1.6B loss
“Monday Morning Cup of Coffee takes a look at news coming across HousingWire’s weekend desk, with more coverage to come on bigger issues.”

BofA escapes damages in Merrill Lynch suit
“The office of New York Attorney General Eric Schneiderman admits he will not seek damages from Bank of America (BAC) over its risky $18.5 billion purchase of Merrill Lynch back in 2009.”

5 secrets to winning online property auctions
” Online auctions are growing in popularity.

Websites like auction.com are killing it; making bundles of money selling houses online, while giving investors a whole new world for buying properties.”

Young Americans on homeownership strike?
“They used to say never trust anyone over 30. Those words obviously rang true 20 years ago when the average 30-year-old typically managed to obtain a modicum of stability in their life in the form of a stable job and a mortgage.”

NAFCU’s Dirty Dozen
“The National Association of Federal Credit Unions (NAFCU) published a list of what it calls the “Dirty Dozen” — a series of goals that the organization has for 2014.”

When It Comes To Real Estate Bubbles, China’s Got Nothing On Brazil
“World investors may be worried about China’s real estate bubble. But only one country surpasses that market’s housing boom, and that’s Brazil.”

Real estate still tragically unequal
“Greater Boston is already one of the toughest markets in the country for both renters and buyers, with skyrocketing housing costs and scarce listings.”

Report: Troubles Ahead for Commercial Real Estate Loan Refinancing
“With an estimated $1.4 trillion in commercial mortgages due to mature between 2014 and 2017, lenders and investors may be in for a flood of refinancing that could present new challenges for the market, according to a December 2013 year-end Trepp report.”

Real estate investment trusts are an under-embraced asset class
“Out of the ruins of the housing crisis, a new asset class has emerged: publicly traded, single-family residential real estate.”

1 Massive Threat to Real Estate Across the Country
“Lately, most news involving the recovery of the housing market in the United States has been overwhelmingly positive. However, there is one issue that poses a dangerous threat to the recovery in housing: flood insurance.”

HUD AND CENSUS BUREAU ANNOUNCE
NEW RESIDENTIAL CONSTRUCTION ACTIVITY IN DECEMBER
“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau today announced the following new residential construction statistics for December 2013:”

Cash investors altering psychology of real estate market: Can the regular home buyer compete with the big money from Wall Street?
“Investor buying has pushed the real estate market into uncharted territory.  Starting in 2008 after the crash in home values, investors at first stepped in slowly and now they represent a dramatic share of all home purchases.  This may not matter to some in most states across the US but in places where investors are heavily focused, the power wielded by this group is still large.  Sellers for the most part, this includes the banks off-loading distressed properties (aka repossessed homes), look for quick sales at the highest price.  Sounds simple enough.  Yet most in the public stand no chance with the large money crowd.  For example, I know of people in targeted areas that scout for distressed properties and show up at auctions with checks ready to bid on properties.  Some are individual investors and some work for a larger system of buyers.  It is no new game with investors in the market but the volume of big institutional investors is definitely something new.”

Fed taper could hit housing market
“The stakes are high for San Diego’s housing market as the Federal Reserve tapers the national economy off super-low interest rates.”

Why Jumbo Mortgages Are So Cheap
“Jumbo mortgages — gigantic loans which historically have been much-more expensive than FHA, VA and conventional financing — are selling at a discount. In fact, at the start of December elephantine loans were cheaper than conventional mortgages.”

New Mortgage Risk Index Exposes Market Vulnerabilities
“A new initiative of the American Enterprise Institute (AEI) aims to mitigate the damage of housing’s boom-and-bust cycles. It utilizes a new Mortgage Risk Index developed by a former chief credit officer of Fannie Mae and a 25-year veteran of the Federal Reserve.”

Lenders Continue to Lower Credit Requirement Thresholds
“After loosening steadily for several months, credit standards for mortgage loans ended 2013 at their lowest level all year, according to the December Origination Insight Report from Ellie Mae.”

California Home Sales Abate to Close Out Year
“Single-family and condominium sales in California closed 2013 on a cautiously positive note, even though overall sales were down notably from the year prior, according to the latest quarterly market activity report from real estate tracking firm PropertyRadar.”

Expediting the Empties
“Can servicers and their partners in the field work through the many obstacles that come with fast-tracking vacant foreclosures?”

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Real Estate News 1.16.2014

Trulia set to serve up sellers as ‘leads’ to real estate agents
Selling the contact information of prospective homebuyers to real estate agents as buyer “leads” has long been the bread and butter of listing portals like Zillow, Trulia and realtor.com.”

Trulia’s housing indicator shows mixed market (VIDEO)
“It’s going to be an uneven recovery, says Sean Aggarwal, Chief Financial Officer at Trulia, sharing his thoughts on the outlook on housing. We¿ve seen a very sustained recovery in 2014, says Aggarwal.”

Foreclosures hit six-year low in 2013
“Last year was a banner year in the fight against foreclosures, with filings hitting their lowest level since 2007.”

World economy on recovery road, but weak inflation threatens: Reuters poll
“(Reuters) – A much better year lies in store for most of the world’s major developed economies, although weak inflation will persist, complicating central banks’ ability to get interest rates back to normal, Reuters polls forecast on Thursday.”

Why banks aren’t lending to homebuyers
“‘Despite the confluence of promising signs,” write Peter Eavis and Jessica Silver-Greenberg today, “little in the vast system that provides Americans with mortgages has returned to normal since the 2008 financial crisis, leaving a large swath of people virtually shut out of the market.'”

Some banks made to pay cities for foreclosing on properties
“Canton officials say they have found a way to hold banks accountable for foreclosed and vacant properties in the northeastern Ohio city.”

FHA: The incredible, shrinking mortgage resource
“Is FHA sending its most profitable, lowest-risk customers — homebuyers who have very good to excellent credit — to Fannie and Freddie for their mortgages, thereby losing significant market share?”

‘Worst of all worlds’ for mortgage lending in fourth quarter
“The country’s top three mortgage lenders confirmed this week that new home loans dropped last year as mortgage rates rose, with earnings results Wednesday from Bank of America showing a 46% year-over-year drop in the fourth quarter.”

The bear and bull cases for mortgage REITs in 2014
“WASHINGTON (MarketWatch) — Shareholders of real estate investment trusts that invest in mortgage-backed securities had a rough 2013, and while rising rates continue to pose a risk, there could also be buying opportunities, analysts say.”

Did Fannie Mae run afoul of California’s short sale laws?
“Fannie Mae and its servicers maybe broke the law in California when collecting contributions from borrowers on short sales, the office of the inspector general for the Federal Housing Finance Agency claims in a new report. The government-sponsored entity, while not admitting culpability, said a data error may be to blame.”

BofA Says Profit Quadruples as Mortgage Costs Ebb
“Bank of America Corp., the second-biggest U.S. lender, quadrupled its quarterly profit and beat Wall Street estimates as the company quelled claims tied to defective mortgages. The stock reached its highest level in more than three years.”

Freddie Mac: Mortgage rates hit monthly low
“Mortgage rates took a step back due to signs of a weakening economic recovery, according to the latest Freddie Mac Primary Mortgage Market Survey.”

Collapse in refis drive Citi earnings miss
“Citigroup (C) drove a 21% increase in fourth quarter earnings, but that wasn’t enough to reach analyst expectations as a weakening mortgage business proved too tough a headwind to overcome.”

Goldman Sachs sets aside plenty of cash for mortgage lawsuits
“Goldman Sachs (GS) reported fourth-quarter revenues and profit topping Wall Street estimates, bouyed by a resurgent IPO market that boosted investment banking revenue.”

Citi sells Fannie Mae MSRs … to Fannie Mae
“Fannie Mae has purchased mortgage servicing rights on about 64,000 of its own loans from Citigroup (C), as the nation’s 3rd largest lender looks to shed future liabilities tied to its servicing practices.”

Jobless claims fall by 2,000 filings
“Jobless claims pulled back slightly for the week ending Jan. 11, and fell by 2,000 filings to 328,0000, the U.S. Department of Labor said.”

Why Mortgage REITs Deserve Some Love in 2014
“There’s nothing sexy about mortgage real estate investment trusts. They can’t talk to you like Siri or deliver packages with drones like Amazon envisions. But they currently yield 13 percent while Treasury bonds yield only 3.8 percent.”

REAL ESTATE: Bailing out of PMI
“Home prices rose so significantly across Inland Southern California in 2013 that consumers who have been paying private mortgage insurance on their home loans for years not only may be emerging from underwater home equity positions.”

REAL ESTATE: Earthquake coverage rumblings follow 4.4-magnitude temblor
“Twenty years after the Northridge quake of January 1994, the earth that rumbled and roared in Fontana on Wednesday, Jan. 15, gave many in the Inland region more than a 4.4-magnitude wake-up call.”

OBAMA ADMINISTRATION ANNOUNCES SEVEN ADDITIONAL CITIES
PARTICIPATING IN THE STRONG CITIES, STRONG COMMUNITIES INITIATIVE
“WASHINGTON – Today the Obama Administration announced it is expanding the Strong Cities, Strong Communities (SC2) Initiative to include Brownsville, TX; Flint, MI; Gary, IN; Macon, GA; Rockford, IL; St. Louis, MO; and Rocky Mount, NC. President Obama established SC2 in 2011 as an innovative and flexible program designed to strengthen local capacity, coordinate federal investments, and spark growth in economically distressed communities.”

Squeezing out the working class through higher rents: 11.3 million Americans spend more than half their income on rent in 2011, a jump of 28 percent from 2007.
“Welcome to landlord nation.  People need a place to live and a recent Harvard analysis found that more Americans are spending a larger portion of their income on housing.  More to the point, there are now 11.3 million Americans that spend half of their income on rent.  This is a significant jump of 28 percent from 2007.  Rents also went up throughout 2012 and the first half of 2013 so this figure has definitely increased.  Is this a good thing for households?  Probably not but that is simply the current trend.  This is also a reason why only 1 out of 3 households can actually afford a home in California and is a direct consequence of the massive flood of investors into the real estate market.  When properties go back into the market with artificially low supply, these owners have the ability to command higher prices.  The end result?  More money to landlords and less money in the pockets of renting households.  And with America becoming more of a renter nation, this is putting a strain on the budgets of many households.”

California AG Busts Statewide, Multi-Million Dollar Housing Scheme
“California officials on Wednesday arrested five individuals who allegedly ran a statewide housing scheme involving the fraudulent seizure of at least 23 homes in nine counties.”

Fed’s Beige Book Details Improvements in Regional Real Estate Markets
“Representatives from the Federal Reserve’s 12 districts reported moderate economic expansion across most of the country through the end of last year, with indicators pointing to more steady growth ahead.”

Taking the Temperature of the Market
“MCLEAN, VA–(Marketwired – Jan 16, 2014) – Freddie Mac (OTCQB: FMCC) released today its U.S. Economic and Housing Market Outlook for January showing that four of the key housing indicators are all moving in the right direction, which bodes well for an ongoing recovery. A short preview video, and the complete January 2014 U.S. Economic and Housing Market Outlook are available here.”

Fixed Mortgage Rates Move Lower on Economic Data
“MCLEAN, VA–(Marketwired – Jan 16, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates fall amid signs of a weakening economic recovery.”

Freddie Mac Multifamily Research Highlights Borrower Default Behavior
“MCLEAN, VA–(Marketwired – Jan 16, 2014) – New Freddie Mac (OTCQB: FMCC) research shows that a commercial real estate borrower’s loan default decision for an underperforming property is based on several factors, including property and loan characteristics, and economic and market conditions. The research [PDF], “Default Ruthlessness: Examining Borrower Default Behavior,” analyzed and compared borrower default behavior for CMBS loans and Freddie Mac multifamily loans. The research can help debt investors better manage their investment expectations.”

Freddie Mac Prices $1 Billion Reopening of 1.75% Seven-Year Reference Notes® Security
“MCLEAN, VA–(Marketwired – Jan 16, 2014) –  Freddie Mac (OTCQB: FMCC) announced today that it auctioned a $1 billion reopening of its 1.75% seven-year USD Reference Notes® security that matures on May 30, 2019. The stop yield for the issue, CUSIP 3137EADG1, was 1.947%, priced at 98.999425. The bid-to-cover ratio was 3.4 to 1.”

Freddie Mac to Issue a New Three-Year Reference Notes® Security and $1 Billion Reopening of 1.75% Reference Notes Security
“MCLEAN, VA–(Marketwired – Jan 16, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it plans to issue a new three-year USD Reference Notes® security, CUSIP number 3137EADT3, due on February 22, 2017. The issue will be priced on Friday, January 17, 2014, and will settle on Tuesday, January 21, 2014, at benchmark size.”

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Real Estate News 1.10.2014

Far fewer mortgage borrowers ‘deeply underwater’

“A growing number of mortgage borrowers are keeping their heads above water, according to a report from RealtyTrac.”

 

Mortgage Rates React to Light News Week

“This week saw conflicting reports of interest rate movements, despite markets having little news with which to react.”

 

Labor market data suggest economy strengthening

“(Reuters) – The number of Americans filing new claims for unemployment benefits last week fell and planned layoffs hit a 13-1/2 year low in December, adding to a range of data that have suggested the economy is gaining steam.”

 

Bill would boost disclosures in corporate settlements with U.S.

“WASHINGTON — Concerned that targets of federal investigations are getting off lightly, two senators proposed legislation requiring the government to disclose all the details about settlements that allow companies to duck trials on allegations of wrongdoing.”

 

JPMorgan, UBS Said to Be Among Banks in Mortgage Probe

“JPMorgan Chase & Co. (JPM) and UBS AG (UBSN) are among banks that received federal requests for information about trades in mortgage-backed securities after the financial crisis, two people briefed on the matter said.”

 

Brown Proposes Record $106.8 Billion California Budget

“California Governor Jerry Brown proposed a record $106.8 billion budget as state coffers brim with the biggest surplus in more than a decade, setting up a fight with fellow Democrats who want more spending.”

 

Home Equity Gains Spur the Economy as Owners Buy Cars: Mortgages

“Americans flush with cash as they regain equity in their homes are spending more after years of pinching pennies.”

 

New ECOA rule means collateral valuation pipelines may be leaking

“The Consumer Financial Protection Bureau’s Equal Credit Opportunities Act valuations rule, which goes into effect Jan. 18, mandates that all borrowers confirm statements prior to receiving an electronic copy of any appraisal report.”

 

The wrong vote on this Senate bill will cost billions

“A key vote on a bill that would put on hold key flood insurance rate hikes was delayed Wednesday, but the bill should be back up for a vote next week.”

 

UNDERWATER MORTGAGES: Equity on the rise in Inland homes

“Fewer foreclosures were deeply underwater on home equity in December, and the percentage of mortgaged homes in the Inland region with negative equity fell to 23 percent, a new report from real estate information service RealtyTrac revealed.”

 

REAL ESTATE: Lending basics restored in 2014

“The new consumer protections for homeowners take effect on Friday, Jan. 10.”

 

Shadow Inventory Lowest Since August 2008

“The industry’s shadow inventory of homes with mortgages 90 or more days delinquent, in foreclosure, or held as REO by mortgage servicers but not currently listed on multiple listing services (MLSs)—also known as pending supply—stood at 1.7 million as of October 2013, according to CoreLogic.”

 

Nation’s No. 3 Credit Union Adopts Mortgage Harmony’s ‘Rate Reset’

“Mortgage Harmony Corp., the provider of Loan Retention Software (LRS) and the HarmonyLoan product, announced that its Rate Reset Protection software has been added to online applications on select mortgage products from Pentagon Federal Credit Union (PenFed), the country’s third largest credit union.”

 

Freddie Mac Multifamily Prices First Securities Offering This Year, K-714

“MCLEAN, VA–(Marketwired – Jan 10, 2014) – Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (“K Certificates”), which are multifamily mortgage-backed securities. The approximately $1 billion issuance of K Certificates (“K-714 Certificates”) is expected to settle on or about January 28, 2014.”

 

What Does Your Mortgage Really Cost?

“The government has just come out with a new form designed to explain how much a mortgage really costs. It took two years of study, revision and editing to perfect the Consumer Financial Protection Bureau’s new “loan estimate” form, paperwork designed to help consumers make better mortgage choices and hopefully avoid higher loan costs and needless foreclosures.”

 

Jobs report blues: Did the Fed screw up?

“FORTUNE — The Fed has been too cheery about the economy before, and Friday’s jobs report may prompt many to wonder if the central bank screwed up again.”

 

What the new mortgage rules mean for you

“New mortgage lending rules are going into effect Friday that aim to put an end to the worst mortgage lending abuses of the past.”

 

Wall Street Predicts $50 Billion Bill to Settle U.S. Mortgage Suits

“Wall Street could pay nearly $50 billion to buy peace from federal authorities who are taking aim at the banks over their role in the mortgage crisis, according to interviews and a confidential analysis of the industry’s potential legal exposure.”

 

FHFA delays inevitable g-fee hike

“Just before Rep. Mel Watt, D-N.C., was officially sworn in as director of the Federal Housing Finance Agency, the agency said it would increase guarantee fees.”

 

Phoenix housing recovery stalls

“The Phoenix housing market continues to see home price gains, but those jumps are not as steep as before since the state is now dealing with an exodus of investors.”

 

5 big promises the White House is making now about housing

“The Secretary of Housing and Urban Development joined the education and agriculture secretaries Thursday in a press conference to elaborate on what will be involved in President Obama’s new “promise zone” initiative.”

 

HUD AWARDS $16.3 MILLION TO HUNDREDS OF PUBLIC HOUSING AUTHORITIES TO PROMOTE FAMILY SELF-SUFFICIENCY

“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today awarded nearly $16.3 million in grants to help public housing residents to gain access to education, job training and employment. HUD’s Public Housing Family Self-Sufficiency Program (PH-FSS)helpspublic housing authorities across the country to hire or retain more than 300 program coordinators who will work directly with families to connect them to the supportive services that meet their individual needs and to become gainfully employed.”

 

California baby boomers and the golden real estate handcuffs: Examining the real numbers behind generational real estate wealth.

“Americans tend to shun generational transfers in wealth especially when they are unwarranted and not based on individual merit. Heck, revolutions were fought with much bloodletting to rid the heavy chains of an aristocratic class that handed down the baton of wealth to future heirs. The question of baby boomers and real estate is an important one because you have one generation with much of their wealth tied up in one asset class while younger generations struggle to get by. In California, Prop 13 has been the subject of much debate and was at the hub of a rallying cry back in 1978 for tax reform, a rally many baby boomers remember (the older baby boomers were already in their early 30s at this point). One issue that constantly comes up with Prop 13 is that you don’t want grandma thrown out to roam around the streets of L.A. Of course, this assumption is that most people stay put in one home for 30-years (this is factually not the case). People move. A lot. The figures for California highlight a mobile class which flies in the face of Prop 13 justifications since properties are typically reassessed when they transfer hands.”

 

Home buyers and sellers buckle up

“This will be a year of adjustment for the San Fernando Valley’s housing market.”

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Real Estate News 1.3.2014

Job search: One year and counting…
“Lena Rouse has merely one resolution for 2014: Finally get a job.”

The smart home is a pipe dream
“At next week’s Consumer Electronics Show in Las Vegas, the tech industry will try to convince us that our homes will be completely automated in the next five years. Don’t believe the hype.”

Sell your home without a real estate agent
“How do I sell my home without using a real estate agent? — Bill, Chicago”

Luxury sales drive Manhattan home prices higher
“New York’s new mayor is vowing to shrink the divide between the wealthy and everyone else. But when it comes to the real estate market, he is facing an uphill battle.”

Fannie Mae, Freddie Mac got $7.9 billion in bank settlements in 2013
“WASHINGTON —  Fannie Mae and Freddie Mac collected $7.9 billion from large financial institutions to settle suits over bad mortgage-backed securities purchased by the seized housing finance giants during the subprime housing boom, their federal regulator said.”

Fannie Mae, Freddie Mac may be too profitable to shut down
“WASHINGTON — Federal officials swooped in to rescue mortgage finance giants Fannie Mae and Freddie Mac in 2008 with the largest of all the financial crisis bailouts — a combined $187.5 billion — because they were considered too big to fail.”

Morningstar Executive Gives Assessment of New CFPB Rules
““Under the new CFPB [Consumer Financial Protection Bureau] rules, servicers will have to provide very detailed and accurate information to borrowers about each aspect of their loans and/or any foreclosure procedures that may occur,” according to Richard Koch, SVP at Morningstar Credit Ratings.”

Industry Completes 50K Loan Modifications for Homeowners in October
“The HOPE NOW Alliance recently announced that an estimated 50,000 homeowners received permanent, affordable loan modifications from mortgage servicers during October 2013. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP).”

Alternate Home Price Index Records Weaker Gains
“While the S&P Case-Shiller Home Price Indices for October showed a significant 13.6 percent year-over-year leap, other measures saw more subdued gains for the month.”

Average private RE investment vehicle reaches $511M
“The average size of private real estate investment vehicles that closed in 2013 hit $511 million — the highest level recorded by Preqin since the start of its data analysis.”

Residential construction spending hits 2008 levels
“Construction spending on private, residential projects reached a seasonally adjusted annual rate of $346 billion in November, up 17% over November 2012. That’s the fastest pace since mid-2008.”

Lenders search for plan B
“Lenders and borrowers are looking to other avenues of borrowing as mortgage rates continue to rise and competition heightens among financial institutions.”

2014 housing forecasts filled with euphoria: Estimates looking at higher rates combined with higher prices and stagnant incomes.
“Euphoria unlike housing inventory is in plenty supply when it comes to 2014 real estate forecasts.  The glue holding the housing market comes from investors and generous banking policy.  The one thing about economics unlike other hard sciences is that it happens in real-time.  It also assumes certain rules are fixed but that really act more like clay to fit the whims of the power structure.  It was interesting to see how few analysts at the end of 2012 predicted the massive run-up in real estate prices during 2013.  What is typical of course is that analysts usually go with the momentum so it is no surprise that predictions for 2014 are rosier than they were for 2013 even though most are forecasting higher interest rates and most will acknowledge that this current pace is unsustainable.  Yet higher rates will add pressure on income constrained households.  Investors are already showing signs of pulling back in certain markets.  Let us examine the 2014 real estate forecasting landscape.”

3 ways Dodd Frank law will roil real estate in 2014
“Chris Dodd and Barney Frank have long since retired, but the namesake legislation they craftedfour  years ago is about to unleash sweeping changes in the mortgage and real estate markets.”

Can Selling Real Estate Make You Rich?
“When Roman Serra, a 29-year-old with a master’s degree in art, decided to switch careers, he enrolled in a two-week real-estate course. He took a personality test online and went through a short interview at Chicago real-estate firm Baird & Warner, where he took the class. If he passes his broker’s license examination in January, he is guaranteed a spot as an independent contractor and a desk at one of the company’s 22 offices. He says studying wasn’t difficult compared with his days in college. “I wouldn’t personally consider it intense,” he says.”

AZ real estate player, reality TV star in trouble for operating without license
“PHOENIX (CBS5) – A reality TV star made a name for himself bidding on foreclosed homes. Now he’s underwater, accused of operating without a license.”

Three Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure Auctions
“WASHINGTON—Three Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.”

Real Estate in 2014: A Need-to-Know Guide
“After year of struggles, the housing market roared back to life in 2013. The rebound will continue in 2014, but the pace will slow.”

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Today’s Real Estate News 11.5.2013

Banks offering mortgages with only 5% down payments
“Good news for homebuyers who don’t have a lot of cash on hand: Banks are offering loans with down payments of just 5%.”

Why the jobs picture is brighter than you think
“FORTUNE — As the U.S. unemployment rate falls, skepticism grows about any real improvements in the job market.”

Bahrain’s Investcorp buys $250 mln worth of U.S. real estate assets
“Nov 5 (Reuters) – Bahrain-based Investcorp said on Tuesday that it has acquired a group of offices and retail properties in the United States for $250 million.”

UPDATE 1-U.S. homeownership rate holds near 18-year lows
“Nov 5 (Reuters) – Homeownership in the United States held near 18-year lows in the third quarter, suggesting the housing market was still struggling to overcome challenges brought on by the recession.”

Deals of the day- Mergers and acquisitions
“Nov 5 (Reuters) – The following bids, mergers, acquisitions and disposals were reported by 1100 GMT on Tuesday.”

Eminent Domain Battle Shifts to Another California City
“Sorohan, Mike–Nov. 5, 2013
Popping up like a Hydra, the latest battle over use of eminent domain to seize underwater mortgages has shifted to Pomona, Calif., a city of 150,000 residents outside Los Angeles.”

Few Banks Easing Mortgage Standards in Response to Higher Rates, Fed Says
“Most U.S. banks have maintained their existing lending standards on residential loans in recent months despite rising interest rates and softer demand for mortgages, a Federal Reserve survey found.”

Mortgage originations could fall 32 percent next year
“Mortgage originations in the U.S. could fall 32 percent next year from 2013 levels, according to the Mortgage Bankers Association.”

How Bank-Defeated ‘Plain-Vanilla’ Requirements Live On
“Before there was much talk about “qualified mortgages,” “living wills” and the “Volcker Rule,” the two words that perhaps scared bankers the most were ‘plain vanilla.'”

Fed in no rush to cut bond buys, top policymakers say
“(Reuters) – The Federal Reserve should scale back its asset purchases only when the U.S. economy shows clearer signs of improvement and even then it should act slowly, one senior central banker said on Monday, while two others stressed there is no need to rush.”

Morgan Stanley Says AIG May Sue Over Mortgage-Linked Investments
“Morgan Stanley (MS), the sixth-largest U.S. bank by assets, said it may be sued by American International Group Inc. (AIG) over mortgage-backed securities that the insurer purchased before the financial crisis.”

National vacancy rate edges up 8.3% in 3Q
“National vacancy rates in the third quarter 2013 hit 8.3% for rental housing and 1.9% for homeowner housing, the Department of Commerce’s Census Bureau announced.”

Ally’s Net Income Declines 76% as Mortgage Costs Linger
“Ally Financial Inc. (ALLY), the auto finance firm majority-owned by U.S. taxpayers, said third-quarter profit fell 76 percent as the company settled U.S. claims for soured mortgages and stopped making new home loans.”

Will We Face A Mortgage Shortage In 2014?
“People assume that mortgages will always be available but what if that’s wrong? Could  there be a mortgage shortage in the near future, a time when financing shelves  are bare?”

Pennsylvania Housing Affordable
“Editor’s Note: In the October 2013 issue of the Foreclosure News Report, we asked Brian A. Hudson, the Executive Director and CEO of the Pennsylvania Housing Finance  Agency, to pen a “My Take” column and bring us up to speed on what the state is  doing to foster affordable housing. Here’s a short excerpt from Hudson’s  column.”

Analysts Say Double-Digit Appreciation Will Come to an End by 2014
“National home prices were up 10.1 percent year-over-year in the second quarter, but price appreciation is expected to fall out of the double-digits, reaching 5.4 percent by the beginning of next year, according to the CoreLogic Case-Shiller Home Price Indexes.”

Despite Bankruptcy, Detroit’s Housing Market Thrives
“The city that previously made national headlines for its failing economy and bankruptcy filing is now in the spotlight for its rapidly rebounding housing market. Detroit topped two lists of highest-performing housing markets in the past week—one from Realtor.com and one from Clear Capital.”

Activity from Homebuyers Picks Up in Aftermath of Shutdown
“Homebuyers shook off their fears and returned to the market in force following the re-opening of the government in October, according to data presented by Redfin’s Research Center.”