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Real Estate News 2.20.14

Priceline for landlords may determine your next rent
“Your next rent hike may be determined by a sort of Priceline.com for landlords.”

Is the housing recovery losing steam?
http://finance.fortune.cnn.com/2014/02/19/is-the-housing-recovery-losing-steam/
“FORTUNE — 2014 was supposed to be the year that the construction industry finally took off.”

Jobless claims fall in February payrolls survey week
“(Reuters) – The number of Americans filing new claims for unemployment benefits fell last week, pointing to steadily improving labor market conditions, despite two straight months of weak hiring.”

Stevens: Give National Servicing Standards a Chance to Work
“Mortgage Bankers Association (MBA) President David H. Stevens congratulated mortgage servicers attending MBA’s National Mortgage Servicing Conference on Wednesday for surviving the past few years with the ‘staggering amount of change’ from new rules and regulations and the ‘intense scrutiny of policymakers, regulators, and the news media.'”

Can servicers bridge the trust gap with homeowners?
“It is hard to characterize the entire mortgage servicing industry, but the zeitgeist at the Mortgage Bankers Association’s National Mortgage Servicing Conference & Expo is that things are better now than they were two years ago.”

New U.S. housing regulator hears concerns on tight credit
“Feb 19 (Reuters) – The new regulator of Fannie Mae and Freddie Mac has made it a priority to meet with housing and real estate trade groups, the latest signal that he is taking their concerns about credit availability on board.”

Obama Officials Quiet on Refi Expansion
“Remarks by a top Obama administration official muddied the waters last week over whether the administration supports a key technical change to its signature home-refinancing program.”

Citigroup launches RMBS
“Citigroup (C) is releasing details of its second residential mortgage backed securitization since the housing recovery began.”

Waning Mortgage Refinancings Make New Deals Safer, Moody’s Says
“A trend of fewer homeowners refinancing their mortgages as interest rates climb is helping to curb sales of home-loan bonds without government backing. It’s also making new notes being issued safer, according to Moody’s Investors Service.”

Lawmaker Urges U.S. Regulators to Scrutinize Mortgage Servicers
“Representative Maxine Waters of California is urging federal banking regulators to scrutinize the sale of billions of dollars of mortgage-servicing rights to a fleet of specialty firms, a move that comes amid mounting concerns that some of the most vulnerable homeowners are facing fresh abuses in battles to save their homes.”

BofA $8.5 Billion Mortgage Settlement Delay Bid Rejected
“Feb. 19 (Bloomberg) — Bank of America Corp.’s $8.5 billion settlement with mortgage-bond investors won’t be delayed after American International Group Inc. and other objectors asked for a hearing to address loan modifications excluded from the accord, a state judge ruled.”

Average monthly house payments jump 21% in fourth quarter
“The estimated monthly house payment for a median-priced three-bedroom home purchased in the fourth quarter of 2013 — and that includes mortgage, insurance, taxes, maintenance, and subtracting the estimated income tax benefit — increased an average of 21% from a year ago in the 325 U.S. counties included in an analysis by RealtyTrac.”

Who says poor construction numbers won’t bend positive trajectory?
“U.S. home construction just cratered in January, dropping 16%, according to the U.S. Census Bureau.”

What did the Fed say that matters to the housing market?
“The big takeaway from the minutes of the Federal Open Markets Committee January meeting for the housing industry is that tapering is likely to continue apace, and that the Federal Reserve is throwing out its previous goal post of 6.5% unemployment in favor of an ill-defined mandate for continued quantitative guidance.”

What could boost the credit quality of Jumbo RMBS?
“Moody’s Investors Service’s exclusive client report “Slowdown in Mortgage Refinancing is Credit Positive for New Jumbo RMBS” charges that lower mortgage refinancing volume could lead to a higher proportion of purchase loans in new jumbo residential mortgage-backed securities, boosting the credit quality of the pools because purchase loans typically have lower default rates.”

Is HomeStreet getting back into jumbo mortgages?
“The residential mortgage side of the business for HomeStreet Bank is stalling.”

Why is the Miami real estate market burning so hot?
“Strong demand for real estate in the city styled the “Capital of Latin America” resulted in a third consecutive record sales year and two years of double-digit price appreciation.”

Are the states going to come after servicers again?
“The weather didn’t stop them – or maybe it drove them—but more than 1,200 attendees made it to this year’s Mortgage Bankers Association’s National Mortgage Servicing Conference in Orlando. That’s roughly the same as last year, according to Dawn Williams, who organizes the conference for the MBA.”

REAL ESTATE: It’s getting tougher to buy a house
“Inland Southern California has pushed past the affordability level that allows median income households to buy a house, a new report from RealtyTrac suggests.”

Online Real Estate Service Trulia Relaunches Its Mobile Apps
“Just ahead of the spring house hunting season, the online real estate service Trulia today launched a major redesign of its flagship mobile apps for iOS and Android.”

Boise’s newest real estate boom tops the nation
“BOISE – Boise real estate agents are currently reporting the biggest housing boom in the nation.”

HUD AND CENSUS BUREAU ANNOUNCE NEW RESIDENTIAL CONSTRUCTION ACTIVITY IN JANUARY
“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 January 2014…”

Fixed Mortgage Rates Tick Up
“MCLEAN, VA–(Marketwired – Feb 20, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates up slightly for the second week in a row.”

10 Secrets to Landing a Foreclosure Bargain in 2014
“At the risk of sounding self-serving, we here at RealtyTrac earnestly contend that 2014 will represent one of the best years in recent memory for a low-risk, high-reward foreclosure purchase.”

Auction.com and NAHREP Partner to Advance Homeownership
“Auction.com and the National Association of Hispanic Real Estate Professionals (NAHREP) are joining forces to advance sustainable Hispanic homeownership.”

Increased Inventory Slows Home Value Growth
“In a report released by Zillow, national home values rose just .2 percent in January from December. Inventory rose in 22 of the nation’s 35 largest metros, and helped slow down the rising value of homes.”

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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 2.13.14

NAR Tech Edge helps Realtors® Keep Abreast of the Latest Technologies
“The ever-changing technology landscape continues to transform the way that Realtors® and the real estate business operate. To help Realtors® keep up with the latest mobile and web-based technologies that can benefit their business and clients, the National Association of Realtors® is continuing its one-day technology conference series, NAR Tech Edge.”

Freddie Mac: Mortgage rates edge higher; 30-year average is 4.28%
“A five-week decline in fixed mortgage rates has ended, with Freddie Mac’s survey showing the 30-year home loan averaged 4.28% early this week, up from 4.23% a week ago.”

Southern California housing market loses momentum in January
“Southern California home buyers continue to turn their backs on an expensive market with few houses for sale.”

New Home Purchases Up Sharply in January 2014
“WASHINGTON, D.C. (February 13, 2014) — MBA estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 543,000 units in January 2014, based on data from MBA’s Builder Applications Survey.’While the big jump may appear to conflict with other data, such as MBA’s purchase application index and NAR’s existing home sales data that point to a weak market for existing homes, our Builder Application Survey estimate is consistent with reports of homebuilder sentiment that show strength in the market for new homes,’ said Mike Fratantoni, MBA’s Chief Economist.  ‘It is also worth noting that the significant January increase also followed a particularly slow pace of sales in November and December.'”

Jobs Key to Housing Market Recovery: MBA’s Stevens (VIDEO)
“Feb. 12 (Bloomberg) — David Stevens, chief executive officer of the Mortgage Bankers Association, talks about the U.S. housing market and mortgage lending. He speaks with Adam Johnson, Scarlet Fu and Tom Keene on Bloomberg Television’s “Market Makers.” Steve Miller, non-executive chairman of American International Group Inc., also speaks. (Source: Bloomberg)”

Shaun Donovan optimistic about housing reform
“Housing and Urban Development Department Secretary Shaun Donovan on Wednesday said he is encouraged by the work being done in Congress to reach an agreement on what to do with government-owned mortgage giants Fannie Mae and Freddie Mac.”

Senate Banking GSE Reform Bill Nears Completion
“Senate Banking Committee leaders are expected to soon unveil their highly anticipated bipartisan bill to overhaul the mortgage finance market as the window for moving legislation this year continues to narrow.”

Mortgage Applications Continue to Slide
“Applications for U.S. home mortgages fell in the latest week as both purchase and refinancing applications slipped, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 2 percent to 397.2 in the week ended Feb. 7. The index hit its lowest level since December 2000 at the end of last year, soon after the U.S. Federal Reserve announced it would start reducing its $85 billion per month bond-buying program as the economy grows strong enough to stand on its own.”

RealtyTrac: Monthly foreclosure filings reverse course, rise 8%
“Monthly foreclosure filings — including default notices, scheduled auctions and bank repossessions — reversed course and increased 8% to 124,419 in January from December, according to the latest report from RealtyTrac.”

HOPE NOW assists 768,000 borrowers in 2013
“Approximately 768,000 homeowners received permanent, affordable loan modifications from mortgage servicers in 2013, according to HOPE NOW’s final 2013 loan modification data.”

Mortgage delinquency rate hits 5-year record low
“The mortgage delinquency rate hit the lowest level in 5 years and dropped below 4% for the first time since 2008.”

FHFA-OIG: GSE mortgage servicing needs oversight
“The Federal Housing Finance Agency Office of Inspector General released its latest report entitled ‘FHFA’s Oversight of the Servicing Alignment Initiative.'”

Blackstone-Fueled Single-Family Home Boom Lifts Chicago
“The tan, three-bedroom house on Chicago’s North Side sits half a block from a Family Dollar store and a pawn shop — an unlikely patch of gold to mine for Blackstone Group LP (BX) in the single-family rental market.”

Homebuilders Leading U.S. Consumer Stocks: EcoPulse
“Shares of U.S. homebuilders are leading consumer discretionary stocks as the new home market is poised to rebound faster than other cyclical purchases this year.”

(Much) more Chinese real estate money heading here
“San Francisco’s Kidder Matthews is partnering with a Chinese real estate consortium ‘to act as a bridge for Chinese business investment which wants to come to the Bay Area.'”

Woman’s young age doesn’t stop her real estate success
“KANSAS CITY, KS (KCTV) – Katie Yeager is a woman breaking multiple stereotypes. She is contributing to Kansas City’s entrepreneurial spirit and making money along the way.”

Beyond ‘frozenomics’: What’s hurting the housing market
“Ask any real estate agent east of Nevada, and they’ll blame slower home sales this winter squarely on harsh winter weather.”

Home values: 5 best markets for Q4 2013
“Home values were up 10.1 percent nationally from the fourth quarter of 2012 to the same period of 2013, according to data from the National Association of Realtors. See five hot markets where prices went up fastest.”

San Diego home sales at three-year low
“The slowdown in San Diego County’s housing market continued in January, as sales dropped to their lowest levels in three years.”

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

Interest Rates and HARP Participation Pressure Title Insurer Revenues
“2014 revenue growth for U.S. title insurers is likely to be constrained, said Fitch Ratings in a press release Wednesday. Fitch cites rising interest rates and Home Affordable Refinance Program (HARP) participation as a limiting factor for title insurers, who have experienced steady revenue growth and improving profit margins over the last two years.”

Experts Predict Level Playing Field as Investors Withdraw
“A majority of experts surveyed by Zillow and Pulsenomics expect large-scale investors will pull out of the housing market in the next few years—and that hopefully means a smoother field for consumer buyers.”

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Real Estate News 2.12.14

Commercial Real Estate Investors “Cautiously Optimistic” As the Future Unfolds, According to New Outlook Report
“WASHINGTON (February 12, 2014): Commercial real estate investments are expected to produce generally solid returns in 2014, according to the authors of Expectations & Market Realities in Real Estate 2014—The Future Unfolds, an annual forecast report released by Real Estate Research Corporation (RERC), Deloitte, and the National Association of Realtors®(NAR).”

House approves ‘clean’ debt limit after Republicans drop demands
“(Reuters) – The House of Representatives narrowly approved a one-year extension of federal borrowing authority on Tuesday after Republicans caved into President Barack Obama’s demands to allow a debt limit increase without any conditions.”

SPECIAL REPORT: MBA Delivers Cautious Economic Outlook for 2014; Financing Hits Highest Level Since ’07
“Mortgage originations for multi-family and commercial real estate in the last quarter of 2014 reached the highest volume achieved since 2007, according to the Mortgage Bankers Association (MBA). Multi-family financing, in particular, has returned to levels last witnessed at the peak of the market.”

MBA: Credit loosens as lenders adjust to QM
“The mortgage credit availability index ticked slightly higher in January and increased 1.85% from 110.9 in December to 113.0 in January, the latest Mortgage Bankers Association report said.”

Homebuyers Get Break as Loan Rates Defy Fed Tapering: Mortgages
“Ashley Underwood is taking advantage of the unexpected drop in mortgage rates by rushing to buy her first home before they go up again.”

Jumbo Loans Loom Large in Luxury Housing Market
“The view of the Pacific Ocean from the San Joaquin Hills in the California community of Newport Coast is extraordinary. So, when Mohammad Taghavian started looking for a new home four years ago, he knew exactly where he wanted to be. The housing market, however, wasn’t so cooperative.”

Late-Payment Rate on Mortgages Falls in 4Q
“U.S. homeowners are doing a better job of keeping up with mortgage payments, a trend that has reduced the rate of late payment on home loans to the lowest level in more than five years.”

Homebuyers Get Break as Loan Rates Defy Fed Tapering: Mortgages
“Ashley Underwood is taking advantage of the unexpected drop in mortgage rates by rushing to buy her first home before they go up again.”

Insurers’ Appetite for CRE Lending Spans Booms and Busts
“Life insurers got burned in the big commercial real estate bust of the 1990s. But as the sector emerges from a smaller Great Recession-era bust, insurers are showing no indication of ‘once bitten, twice shy.'”

Manhattan’s Big Banks Resist Lure of New Office Towers
“As Manhattan developers plan millions of square feet of office towers featuring the most modern amenities, some of their biggest potential tenants have decided they’re better off staying in their current homes.”

Mortgage REITs See Bargains in Competitors’ Shares
“Of all the real-estate investment trusts slammed by the stock market since interest rates began rising last year, few were hit as hard as REITs that invest in government-backed mortgage bonds.”

Zillow: Bulk home sales will boost housing
“The Zillow Home Price Expectations Survey, a pool of opinion from 110 economists, predicts housing market demand will gently ease through the next few years.”

Inspector General: Fannie Mae should implement repurchase late fees
“The Federal Housing Finance Agency’s office of inspector general found in its audit of how the government-sponsored enterprises (GSEs) handled aged repurchase demands that FHFA did not sufficiently evaluate whether to implement a repurchase late fee program at Fannie Mae.”

5 tips to help sell a home on Instagram
“There is a fair number of social media platforms out there, from Facebook to Twitter to Vine.”

Strike three for flood insurance premium hike delay
“Republicans stopped an effort to force a vote on H.R. 3370, which would delay pending flood insurance premium hikes under the National Flood Insurance Program.”

Mortgage apps reverse course, decrease 2%
“Mortgage applications slightly dropped after a light uptick last week and decreased 2% from a week prior, the latest Mortgage Bankers Association said.”

BofA, Goldman among banks facing $16 billion in fines
“NEW YORK (MarketWatch) — The settlements of lawsuits so far with major banks pave the way for some $16 billion in additional penalties to be paid by banks including Bank of America and Goldman Sachs Group over mortgage securities sold to government-seized housing giants Fannie Mae and Freddie Mac.”

Real Estate Matters | Condo boards should think twice about limiting rentals
“I have a condo that I purchased in 2007 when my daughters were going to college. They have both graduated and moved on. Unfortunately, the property values have fallen and there have been a lot of foreclosures in the complex.”

How To Manage The Stress Of A Real Estate Transaction And Not Kill Your Deal
“We always hear from clients that this real estate closing will be simple.  When I hear that, I cringe because even under the best of circumstances I know that clients will experience a bit of stress as they move from contract to closing.  Change produces stress.  To be sure, some handle the process better than others and it is difficult to predict who will hold up better – but stress always exists.”

If investors bail on housing, what then?
“Investor demand, large and small, put a floor on home prices after the housing crash and ignited a recovery. While institutional investors made up a small percentage of those home buyers, they have garnered the most attention because of the bulk purchases they made and because they are a new entrant to the housing market. The concern now is what will happen if and when they decide to pull out?”

Why hedge funds lack women in charge
“Whitney Tilson is the managing partner of the hedge fund firm Kase Capital Management, which he founded more than 15 years ago. Mr. Tilson is also the co-founder of Value Investor Insight, an investment newsletter, and the Value Investing Congress, a biannual investment conference.”

Chanos up as many shorts stumble
“In November, a small band of battered short sellers couldn’t have been more excited about the opportunity to make money from what they saw as wildly overvalued stocks. One, John Fichthorn of Dialectic Capital Management, said it was the ‘best opportunity I will see in my life.'”

Housing plans piling up: Which will get built?
“Sacramento’s new home market has yet to fully revive from its recession-induced coma, but that hasn’t stopped developers around the region from jostling to get new housing projects approved so they can be first in line to tap pent-up buyer demand.”

Big spending, fewer results for homeless
“If you want to be depressed about government spending, look no further than the $127.5 million San Diego County’s government funnels to programs that are supposed to help homeless people stay off the streets.”

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Real Estate News 2.11.14

Scary 1929 market chart gains traction
“CHAPEL HILL, N.C. (MarketWatch) — There are eerie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash.”

Metro Areas See Solid Home-Price Growth, Some Markets Facing Affordability Issues
“WASHINGTON (February 11, 2014) – The lion’s share of metropolitan areas continued to experience strong year-over-year price growth in the fourth quarter, according to the latest quarterly report by the National Association of Realtors®. A companion metro area annual affordability report shows less favorable conditions, particularly in the West.”

Construction Equipment Rentals Boom
“MOLINE, IL—As reported yesterday in GlobeSt.com, panelists at the recent Mortgage Bankers Association’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo said that construction lending has increased to levels not seen in decades. And in another sign of a US economic rebound, construction and industrial equipment rentals have also soared, according to data just published in the American Rental Association’s ARA Rental Market Monitor™.”

NAR: Rising home prices infringe affordability
“The vast majority of metropolitan areas continued to experience strong year-over-year price growth in the fourth quarter, the latest quarterly report by the National Association of Realtors revealed.”

NAR’s chief economist said what about the housing market?
“Lawrence Yun, chief economist at the National Association of Realtors, caught HousingWire’s eye with his recent remarks at the Alabama Commercial Real Estate conference.”

MBA: Credit loosens as lenders adjust to QM
“The mortgage credit availability index ticked slightly higher in January and increased 1.85% from 110.9 in December to 113.0 in January, the latest Mortgage Bankers Association report said.”

How community banks will reign in 2014
“Despite some small lenders choosing to shut the door on originating mortgages, community banks could have just the right kind of leverage to succeed in 2014’s lending environment.”

2014 predictions: Redfin goes public and more
“Monday marked the one-month anniversary of the implementation of the Consumer Financial Protection Bureau’s Qualified Mortgage rule.”

Boehner backs down, says House to vote on ‘clean’ debt-limit hike
“WASHINGTON –  House Speaker John Boehner, in an abrupt shift, announced Tuesday that the House would vote on an increase in the nation’s borrowing cap without any strings attached.”

Fed’s Plosser ‘worried’ about not raising rates
“Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said Tuesday history is not on the side of the central bank when it comes to raising interest rates in a timely manner, and the risk is financial markets will force its hand.”

Former foreclosure attorney in jail
“VISTA — A former attorney who pleaded guilty to stalking, trespassing and other charges related to his work for clients facing foreclosure admitted Monday that he violated his probation.”

Your Homeowner’s Insurance Is Soaring Thanks to Hail From 5 Years Ago
“Brutal storms—including some that hit quite a few years ago—are causing rates on homeowner’s and flood insurance policies to skyrocket.”

U.S. Economic Confidence at Lowest Level Since December
“WASHINGTON, D.C. — The Gallup Economic Confidence Index dipped to -18 for the week ending Feb. 9 — the lowest weekly reading so far in 2014. The index is similar to the -17 measured during the prior two weeks and January’s monthly average of -16. Americans’ confidence in the economy has been falling since it reached this year’s weekly high of -13 in early January. The index was 10 points more positive in early February 2013 than it is now.”

‘Nonpracticing entity’ or ‘patent troll’? Property Disclosure Technologies sues 13 real estate companies
“More than a dozen real estate companies — including Re/Max, Century 21 and Keller Williams — have been hit with patent infringement lawsuits by a company that does not maintain a website or offer any products or services but holds patents on a ‘real estate disclosure reporting method.'”

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Real Estate News 2.11.14

91 million Americans aren’t looking for jobs
“The unemployment rate isn’t always the best measure of the job market, because it only includes people who have actively searched for work within the last four weeks. Many Americans just aren’t looking for jobs.”

Hurdles shrink for jumbo loan shoppers
“You’ll pay more for a big home nowadays, but a big mortgage should be less of a reach.”

Public interest group sues Justice Dept. over JPMorgan settlement
“WASHINGTON — A public interest group on Monday sued the Justice Department over last year’s record $13-billion settlement with JPMorgan Chase & Co., arguing the deal to resolve investigations into faulty mortgage investments was unconstitutional because courts did not review it.”

Mortgage servicer shenanigans keep consumer watchdog busy
“Many of the complaints filed with the federal Consumer Financial Protection Bureau involved servicing, loan modification and foreclosure activities by home-loan servicers.”

Idea floated of Milwaukee selling foreclosed homes in bulk
“With nearly 1,300 properties in its inventory because of tax foreclosures, the City of Milwaukee is entertaining ideas to whittle the list down, perhaps through private-equity investment.”

Seniors overspend on mortgage, credit cards
“Remember that your spending and spending behavior are among the few things you can really control.”

How confident are Americans in getting a mortgage?
“More Americans surveyed now believe it would be easy for them to get a mortgage, according to Fannie Mae’s January 2014 national survey of consumer attitudes in housing.”

Zillow: How to sell a home, despite winter wonderland
“Inch upon inch of snow is piling up, and the desire to stay home curled up by the fire is becoming harder to turn away from: welcome to winter.”

Housing Scorecard: America still healing from Great Recession
“Despite positive trends in the housing market, officials caution that the economy is still healing from the Great Recession, the Obama Administration said in the November housing scorecard.”

D.R. Horton to return mineral rights to Florida homeowners
“The attorney general of Florida, Pam Bondi, announced that homebuilder D.R. Horton (DHI) is sending letters to around 18,000 Florida homeowners to give them the option to receive their mineral rights.”

U.S. Home Sellers Return for Spring as Buyers Get Relief
“Suzanne Baker and her siblings bought a foreclosed home in Atlanta two years ago, added a fourth bathroom, then waited for values to rebound before considering a sale. Now, she says, they’re ready to cash in.”

REAL ESTATE: Lewis Group of Companies poised for the next wave of building
“Step into Lewis Operating Corp.’s headquarters, and the history of a family business that Ralph and Goldy began in 1955 is clearly defined.”

In Chaos of Brooklyn Housing Market, Giving Buyers an Advantage
“In Jonah Landman’s Brooklyn, or at least on his blog, house hunting is ferocious and fast.”

New Pennsylvania law will affect many real estate transactions
“Under a new Pennsylvania law that will affect many real estate transactions, property owners who get behind on their taxes on one property will have a lien slapped against all their other properties in that county.”

Real estate rebound prompts home construction
“LAS VEGAS (FOX5) -Home sellers hoping to recoup value lost during the recession are dealing with a glut of new properties on the market.”

8 Solutions to San Francisco’s Housing Problems
“On one of the first rainy days that drought-stricken California has had in months, San Francisco Mayor Ed Lee stood out of the rain in an unfinished retail space on the city’s gentrifying Market Street. Exposed pipes ran past naked plaster and cold concrete floors, but the drab backdrop had shining significance: above the retail space were nearly two dozen brand new, below-market rate apartments, the kind of housing the land-constrained, soaringly expensive city desperately needs—and that the mayor has vowed to provide.”

Broke, young, and unable to afford a home: The crisis for young American home buyers and household formation.
“Making homes unaffordable to younger Americans is more problematic than simply altering the living habits of upcoming generations.  Housing formation in the United States is entering uncharted territory based on demographic shifts and also the new reality that younger Americans will be less affluent than their parents.  This is why we have millions of younger Americans living at home with parents.  Some may not view this as an issue but in the past, construction was a big part of GDP and you will have a hard time justifying new housing construction if people are simply living at home or are only able to afford a rental.  The student debt crisis goes hand and hand with the unaffordable nature of housing for young Americans.  It also doesn’t help that Wall Street is crowding out regular buyers in the market.  With a growing population and investors eating up the low supply of housing, many young Americans are essentially in the position to move back home or to rent.  Buying is a remote possibility for many Americans and this has put a clamp on new housing formation.”

The big money club and interest only loans: Housing bubble favorite of interest only loans back in the market for wealthy households.
“There is little doubt that growing wealth and income inequality is a reality in the United States.  Even in California we can see this microcosm unfold dramatically.  You have people being pushed inland from coastal areas and those near employment hubs have seen housing values reach near peak levels.  What we are also seeing is that access to debt is the key measure of success in this economy.  For example, the bubble favorite of interest only loans is back but with a different flavor.  Banks like Wells Fargo, Bank of America, and Union Bank are back at it underwriting interest only loans to wealthier clients.  The big difference is that you need to have money to play in this current market.  Banks are holding onto these loans in their own portfolios.  Not a bad way to earn money in a low rate environment.  So this hits at the heart of the issue where Fed policy has largely aided those least needing it in a modern day feudal banking network.  For example, you can buy a $1,000,000 home today with a 3 year interest only mortgage and carry a principal and interest payment of $1,562 per month.  Impossible?  Welcome to the modern banking system where low rates are accessible to those who least need it.”

Consumers Positive About Access to Mortgage Credit; Views Toward Economy Improving
“WASHINGTON, DC – More Americans now believe it would be easy for them to get a mortgage, according to Fannie Mae’s January 2014 National Housing Survey results. Consumer attitudes regarding the ease of getting a mortgage climbed 2 percentage points to an all-time survey high of 52 percent, while those who think it would be difficult dropped 3 points to 45 percent. This indicates that consumers perceive that mortgage credit is more accessible. Even though this month’s survey shows a more moderate expectation for home price gains within the next 12 months, the view that mortgage credit is more available may allow for continued but measured improvement in the housing recovery.”

FHFA Announces HARP Milestone
“In a report released Monday, the Federal Housing Finance Agency (FHFA) announced Fannie Mae and Freddie Mac have reached the milestone of three million refinances under the Home Affordable Refinance Program (HARP).”

Freddie Mac Announces Third Risk-Sharing Deal
“Freddie Mac announced the pricing of its first Structured Agency Credit Risk (STACR) transaction of the year: a $1 billion offering of debt notes whose buyers will share in the risk.”

Housing Outlook – A Bear Market?
“Since 2011, home prices have gained in the double digits, making a price plateau inevitable. But are we really entering a bear housing market? Not if we look at long-term fundamentals.”

How an energy-efficient mortgage can save you money
“The crippling cold, coupled with a growing desire for energy efficiency, has both prospective and existing homeowners considering the merits of a “green” mortgage. These energy-efficient mortgages are a way to finance home improvements, but they can result in higher monthly mortgage payments.”

Why some homes have a secret ‘For Sale’ sign
“One of the worst things a home seller can do when listing a home is price it too high.”

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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 1.17.2014

Roubini: U.S. economy will disappoint in 2014
“FORTUNE — Dr. Doom is back, sort of.”

Realtors® Rate Exterior Replacement Projects Among Most Valuable Home Improvements
“WASHINGTON (January 16, 2014) – A home’s curb appeal is crucial because it can be the first thing buyers notice about a home. That’s why Realtors® rated exterior projects among the most valuable home improvement projects in the 2014 Remodeling Cost vs. Value Report.”

Lower Mortgage Refinancing Activity Hits Citi Profit And Revenue
“If there was ever any question about the nation’s appetite for new and refinanced mortgages, Citigroup’s disappointing fourth quarter earnings results leave very little room for doubt: it’s weak.”

Shawnee County implores Legislature to keep mortgage fees
“As taxes go, the mortgage registration fee historically has fallen below the three budgets it is supposed to support.”

FBI Suspects Front-Running of Fannie, Freddie Swap Orders
“Bank employees may have profited by trading ahead of Fannie Mae and Freddie Mac swap orders, Reuters reported, citing a description of the practice in a U.S. Federal Bureau of Investigation intelligence bulletin.”

CFPB Provides New Guidance on Appraisal Disclosures
“The Consumer Financial Protection Bureau has provided an update to National Mortgage News on a story with inaccurate information about appraisal disclosures. Under the qualified mortgage rule, lenders are required to provide borrowers with all appraisal reports ordered or requested in conjunction with a loan application.”

Mortgage exec says don’t fear new rule on loans
“Wells Fargo Home Mortgage President Mike Heid spoke in favor of the federal government’s new qualified mortgage rule Thursday at a gathering of Des Moines-area business leaders.”

Banks Keep Their Mortgage Litigation Reserves a Secret
“From JPMorgan Chase’s $13 billion settlement over mortgage securities to lawsuits brought by bondholders, a barrage of litigation has been raining down on Wall Street banks. Yet the banks are not disclosing a number that is crucial for assessing their ability to deal those legal costs. And, curiously, the regulator that has sway over companies’ disclosure practices has not called on the industry to reveal this important figure so that investors can weigh the institutions’ health.”

Alabama court thinks landlords need more foreclosure protection
“Lawfirm Ballard Spahr is reporting that an Alabama federal court is suggesting that borrowers can allege invalid mortgage assignments — if a portion of the property has tenants.”

GSE reform idea puts private capital back in driver’s seat
“Representatives John K. Delaney, D-Md., John Carney, D-Del., and Jim Himes, D-Conn., are putting together a housing finance reform proposal that uses private sector market forces to price risk while providing the security of a government guarantee behind the program.”

Housing starts drop 9.8%
“While housing starts dropped 9.8% from November to December, they did manage to grow 1.6% from December 2012, the U.S. Census Bureau said Friday.”

Real estate prices appreciate at a slower pace
“While residential real estate appreciation continues to trend higher, the rapid pace experienced early last year is easing, Veros Real Estate Solutions said in its latest VeroFORECAST report.”

$669 million Fannie, Ginnie portfolio sale hits market
“Mortgage Industry Advisory Corp. is overseeing the sale of a $669.22 million Fannie Mae and Ginnie Mae mortgage-servicing portfolio, the company announced Friday.”

4 key housing trends
“Key indicators show housing moving in a positive direction, paving the way for an ongoing recovery, the latest Freddie Mac Economic and Housing Market Outlook shows.”

New Lenders for Real-Estate Investors
“A new lender is knocking on wealthy real-estate investors’ doors.”

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…”

Freddie Mac Prices New $4.5 Billion Three-Year Reference Notes® Security
“MCLEAN, VA–(Marketwired – Jan 17, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it priced its new .875% three-year USD Reference Notes® security due on February 22, 2017. The issue, CUSIP number 3137EADT3, was priced at 99.839 to yield .928%. The issue will settle on Tuesday, January 21, 2014.”

San Fernando Valley home, condo prices soared in 2013
“The San Fernando Valley’s housing market shook off the shackles of the Great Recession during 2013, according to a report released Thursday.”

Rich Chinese continue to flee China
“Do the wealthy Chinese know something we don’t?”

Construction up, but are we building too many houses?
“The year-end numbers are in, and home construction improved dramatically in 2013. Both single- and multi-family housing starts were up, by 15 and 25 percent, respectively, according to the U.S. Census. Add it all up and total housing construction rose 18 percent from 2012 to the highest level since 2007.”

The Mortgage Professor: Breaking the logjam on reverse mortgages
“People reaching retirement age are living longer than ever, and retiring with less capacity to maintain their living standards. With good reason, this situation has been termed a ‘retirement funds crisis.'”

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Today’s Real Estate News 10.22.2013

Summary: CNN Money reports that the unemployment rate has fallen yet hiring has slowed. Fortune explains how the jobs report won’t be accurate for the next few months. Reuters shares that U.S. construction spending is showing hopeful signs in a 4 ½ year high. Bloomberg reports that lenders are shrinking in the mortgage business, BofA is said to endure three more legal probes into its’ mortgage-bond sales and China’s real estate bubble is affecting Manhattan. CNBC explains how the JPMorgan deal could affect homebuyers in qualifying for a mortgage. The Motley Fool shares how the online real estate market has become a huge aspect of the business and Fox Business educates on why location is such an important role in real estate.

Unemployment falls but hiring slows

“The unemployment rate fell to its lowest level since November 2008, but the government’s latest jobs report still shows a muddled picture of the economy.”

Why the jobs report has become meaningless

“FORTUNE — Employers added 148,000 to their payrolls in September, about 20% less than economists expected and the third smallest monthly increase in the past year. But the unemployment rate dropped to 7.2%, which is the lowest level in nearly five years. And the number of people actively looking for work was up, meaning people are more optimistic about their prospects for finding work.”

U.S. construction spending approaches 4-1/2 year high

“(Reuters) – U.S. construction spending hit a near 4-1/2 year high in August, boosted by increases in both private and public outlays, a hopeful sign for third-quarter economic growth.”

Shrinking Lenders in Mortgage Hub Cut Into Recovery: Real Estate

“CashCall Inc., a lender run by racehorse aficionado Paul Reddam, is one of the mortgage industry’s biggest office tenants in Orange County, California. It’s about to get smaller.”

BofA Said to Face Three More Probes of Mortgage-Bond Sales

“Bank of America Corp., sued by U.S. attorneys in August over an $850 million mortgage bond, faces three more Justice Department civil probes over mortgage-backed securities, according to two people with direct knowledge of the situation.”

China’s Real Estate Bubble Hits Manhattan

“Fosun International Ltd., a Chinese conglomerate that invests in everything from steel to pharmaceuticals to Club Med, has agreed to buy the office tower at 1 Chase Manhattan Plaza from JPMorgan Chase & Co. for a whopping $725 million. This isn’t an isolated incident.”

Jumbo loan availability lifts Chicago housing

“In recent years, the inability to access higher-priced mortgages left many Chicago residents – especially those pursuing properties valued above the area’s conforming loan limit – without the option of moving up to newer, larger homes.”

FHA single-family mortgage guarantee program squeezes taxpayers

“The Federal Housing Administration’s single-family mortgage guarantee program moved dramatically from having a net savings to costing taxpayers money as higher-than-expected borrower defaults hit the firm.”

How the JPMorgan deal could curtail credit

“The Justice Department’s potential $13 billion settlement with JPMorgan may go a long way toward appeasing consumers’ anger at big banks for the financial crisis, but it probably won’t help those same consumers get a mortgage. In fact, it may make it harder.”

How to Play the Online Real Estate Market

“The Internet has become the first place to look for real estate. In 2007, more than 80% of home buyers actively used the Internet as part of their research process before buying real estate and before contacting an agent. This proportion keeps increasing, making online real estate a very attractive market. However, competition in this space is very fierce. Most real estate agents and companies have already built their own sites, and invest heavily in online marketing.”

Why Location Matters in Real Estate

“Ask just about any real estate agent to list the three most important things a property should have, and you’ll likely hear: “location, location, location.” That phrase has been in use at least since 1926, according to The New York Times, and is just as relevant now as it was then.”