Summary:
Today, MSN Money forecasts a “major” rent hike. Fortune explains that employers are to be blamed for American workers lack of skills in today’s workplace. The Mortgage Bankers Association sent a letter to federal regulators which “urged federal regulators to adopt a proposal that aligns their proposed definition of a Qualified Residential Mortgage with the Consumer Financial Protection Bureau’s definition of a Qualified Mortgage/Ability to Repay.” According to BusinessWeek, U.S. lawmakers & regulators are questioning whether or not to lower the “size of mortgages” guaranteed by the government and Citigroup is selling its’ mortgage servicing rights. Chicago Tribune reports this week’s mortgage rates. Consumer sentiment in the nation has fallen, says CNBC. The Housing Wire reports that the FHA Commissioner is urging the government to act as a “backstop” to private capital and Fidelity Financial has altered its’ terms for its’ Lender Processing Services acquisition. According to Reuters, JPMorgan, Deutsche Bank & Creidt Suisse are going to be marketing Blackstone’s home-rental bond for the first time, EVER. Bloomberg reports that the slowdown in exporting will hurt the world’s economy. Press Enterprise shares that home equity to regaining its’ ground in the Inland Empire and that loans are growing for CVB Financial Corp., Citizens Business Bank’s holding company. According to Forbes, China claims $2.31 TRILLION in new home loans from September 2012 – September 2013. UT San Diego reports that San Diego ranks 2nd on the least affordable housing market list.
Get ready for a major rent hike
“The price of renting is rising and competition is growing for apartments, condos and houses. Rents rose 7.6% nationally in the last five years, The Wall Street Journal says. In some cities they’re up 10%.”
American workers are way behind: Blame U.S. employers
“FORTUNE — To listen to some companies, American workers fall glaringly short of sophisticated computer and other necessary skills in today’s workplace.”
MBA Letter Urges QRM, QM Alignment
“The Mortgage Bankers Association strongly urged federal regulators to adopt a proposal that aligns their proposed definition of a Qualified Residential Mortgage with the Consumer Financial Protection Bureau’s definition of a Qualified Mortgage/Ability to Repay.”
Regulators Weigh Reductions in Size of U.S.-Guaranteed Mortgages
“Lawmakers and regulators are debating whether it’s time to shrink the size of mortgages that the U.S government will guarantee, five years after they first boosted loan limits in response to the financial crisis.”
Citigroup Selling Mortgage Servicing Rights as Banks Retreat
“The U.S. mortgage market’s largest lenders are pulling back amid looming regulations and a drop in refinancing that fueled record profits last year.”
Mortgage rates dip to 4-month low
“Mortgage rates hit their lowest levels in four months this week, Freddie Mac said Thursday, as speculation grew that the Federal Reserve will continue its bond-buying stimulus plan through the end of the year.”
Consumer sentiment slides in October on government shutdown
“U.S. consumer sentiment dropped in October to its lowest level since the end of last year as consumers worried Congressional dysfunction and the resulting partial federal government shutdown would hurt growth, a survey released on Friday showed.”
FHA Commissioner: Government should act as backstop to private capital
“Housing finance reform needs to be the government’s top priority as Washington D.C., goes back to work in the wake of the government shutdown, FHA Commissioner Carol Galante said Thursday.”
Fidelity National Financial adjusts terms of LPS acquisition
“Residential mortgage services provider Fidelity National Financial Inc. (FNF) has adjusted the terms of its planned acquisition of Lender Processing Services (LPS).”
Banks set to roadshow Blackstone home-rental bond
“NEW YORK, Oct 24 (IFR) – Deutsche Bank, Credit Suisse and JP Morgan will begin marketing the first-ever bond backed by US home-rental cashflows, a US$500 million trade for private-equity giant Blackstone, next Wednesday.”
Export Slowdown Threatens World Economy
“When HSBC Holdings Plc’s economists from around the world recently pooled their forecasts, virtually all had a similar source of growth in mind for the region they monitored: exports.”
REAL ESTATE: Equity regaining lost ground in Inland marketplace
“Price appreciation in 2013 has thrown life preservers around more homes in Riverside and San Bernardino counties; fewer homeowners struggling to regain lost ground”
BANKING: CVB Financial net earnings, loans grow
“CVB Financial Corp., the holding company for Citizens Business Bank, has announced net income of $24.2 million for the third quarter, or 23 cents per diluted share.”
China Real Estate Lending Tops $2.3 Trillion
“China’s home lending is larger than the entire economy of India. The housing boom there has no bounds, growing 19% year-over-year in September to a total of $2.31 trillion in new home loans, according the Central Bank of China. That’s nearly 25% China’s GDP and more than India’s $1.8 trillion GDP recorded in 2012. It might look like a lot of money, but considering China’s 1.35 billion population, the total housing debt is around $1,700 per person, or 27% of average per capita income.”
SD 2nd least affordable housing market
“San Diego County ranks as the second least affordable housing market, according to a 25-city survey by Income.com.”