economy – Old

February 26, 2014

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.”

February 17, 2014

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.”

February 12, 2014

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.”

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.”

February 11, 2014

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.”

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.'”

February 10, 2014

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.”

January 20, 2014

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?”

January 17, 2014

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.”

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.'”

January 16, 2014

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.”

January 15, 2014

Real Estate News 1.15.2014

Bill Seeks to Extend Federal Tax Exemption for Forgiven Mortgage Debt
“Congressman Bill Foster (D-Illinois) introduced the Homeowners Debt Relief Extension Act (H.R. 3856) on Tuesday. The bill would extend the mortgage debt tax exemption that’s been in place since 2007 for another two years.”

Early Earnings Reports Reveal Effects of Declining Mortgage Volume
“This season’s bank releases kicked off Tuesday with dual quarterly earnings reports from JPMorgan Chase and Wells Fargo—and as projected, weakened origination figures took their toll.”

Florida Law Firm Rebrands and Expands Service to Puerto Rico
“The veteran-, minority-, and woman-owned default law firm founded by Marisol Morales, Esq., announced its expansion into Puerto Rico and a name change from Morales Law Group, PA, to Millennium Partners.”

New Fed Survey Assesses Consumer Expectations
“A recently launched survey from New York’s Federal Reserve Bank shows consumer expectations for the next year remaining fairly flat in December.”

Which Hidden Gems Make Cut as Year’s Hottest Neighborhoods?
“Redfin on Tuesday came out with its annual list of the country’s “hottest” neighborhoods. The company ranked 105 neighborhoods across 21 major markets that have grown the most in popularity during the four months leading into 2014.”

Bank of America profit impresses Wall Street
“Bank of America impressed Wall Street Wednesday with better-than-expected earnings and revenue for the fourth quarter, continuing a trend of solid results from the nation’s largest banks.”

Fannie, Freddie watchdog in probe of alleged Wall Street front running
“(Reuters) – A U.S. government watchdog is involved in an investigation of whether bank traders manipulated markets and engaged in front running of orders from Fannie Mae and Freddie Mac in the interest-rate swaps market, according to an FBI intelligence bulletin reviewed by Reuters.”

The end of the mortgage party? Home lending plummets at Wells Fargo, J.P. Morgan Chase
“The mortgage party is officially over.”

Trade group expects less mortgage loan activity this year
“Mortgage loan activity this year will be less than expected because of higher interest rates and fewer applications, the Mortgage Bankers Association said Tuesday.”

QM storm could hit in weeks
“The Consumer Financial Protection Board’s Qualified Mortgage (QM) rule is going to constrict access to mortgage credit and possibly stall housing, and members of Congress and mortgage industry leaders want a lot more flexibility in dealing with the CFPB’s regulations that went into effect Jan. 10.”

December Gain in Retail Sales Gives U.S. a Lift: Economy
“Retail sales (RSTAXAGM) rose in December as frigid temperatures prodded Americans to buy discounted winter clothing and shop online for the holidays, capping what may have been the strongest quarter for consumer spending in three years.”

Volcker Rule Curbs on Banks Owning CDOs Eased in U.S.
“U.S. regulators granted banks an exemption from Volcker Rule limits for collateralized debt obligations composed mostly of small-bank securities, according to a statement from regulators.”

House Republicans voice support for $1.1 trillion spending bill
“(Reuters) – Republicans in the House of Representatives voiced tentative support on Tuesday for a $1.1 trillion spending bill, signaling likely passage and removing one source of potential drama ahead of the 2014 elections.”

3 key takeaways from JPMorgan earnings call
“JPMorgan Chase (JPM) released its fourth-quarter earnings this morning, and it fared pretty well considering the never-ending series of legal settlements it had to overcome.”

Mortgage apps up 11.9%
“Mortgage applications increased 11.9% from a week ago, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending Jan. 10, 2014.”

Fed’s Fisher says QE is ‘beer goggles’ for investors
“Dallas Federal Reserve Bank President Richard Fisher, always one for colorful speeches, said he is confident and certain that it’s time to come down from the $1 trillion a year money printing and bond buying.”

Congress takes a bite out of housing agency budgets
“A proposed $1 trillion congressional spending bill means less money for key housing agencies, analysts claim.”

JPMorgan With Wells Fargo Lose Share to Small Rivals: Mortgages
“The two largest U.S. home lenders are feeling the bite of competition from smaller firms as mortgage originations tumble at the fastest rate since 2011.”

REAL ESTATE: Up again, December home prices – by 28 percent
“Home sale prices across Southern California were poker-hot in December, the latest real estate information report from San Diego-based DataQuick suggests.”

The Market Is Rethinking That Disastrous Jobs Report
“Markets are already acting as if the bad jobs numbers released Friday may have been just noise, and that the economy is still doing fine. Already we’re seeing interest rates rise again, and other markets continue to bet that the Fed will move toward tightening.”

Do Real Estate Agents Practice What They Preach?
“Trulia’s Chief Economist Jed Kolko dives into Census data to reveal whether real estate agents walk the walk, or if they are all talk. Turns out, they do: their homeownership rate is high even after taking demographics into account. The same goes for appraisers, architects, and construction workers.”

Real Estate Matters | How to get your finances in home-buying shape
“Money makes the world go around. And every year we make resolutions to save more of it, invest it more profitably and spend more wisely.”

County new home prices hit record high
“The median price for newly built single-family homes and condos in San Diego County shot up to a record high in December, while the number of new homes sold hit a record low for a December.”

January 14, 2014

Real Estate News 1.14.2014

9 ways real estate will change this year
“Each year, HSH.com details the important factors most likely to influence the mortgage and real estate markets in the coming year. While it seems we have made our way out of the turbulent times that have bounced the market around for the last few years, there is still plenty of uncertainty ahead.”

Minimum wage hike could mean a raise for all
“When New Jersey increased its minimum wage this year, Dolores Riley gave raises to all 16 employees at her childcare center. But it wasn’t because they were all making $7.25 an hour.”

Wells Fargo profit beats estimates; mortgage loans slump
“(Reuters) – Wells Fargo & Co (WFC.N) reported a better-than-expected 11 percent jump in fourth-quarter profit, though mortgage financing was at its slowest in five years, and the bank’s shares fell in morning trading.”

Lenders fear squeeze from mortgage rules
“Financial institutions are pressing Congress and federal regulators to scale back sweeping new mortgage rules for fear they could impede the housing market’s recovery.”

5 ways the jumbo mortgage market will change in 2014
” Big changes are coming to jumbo mortgages.

Wealthy home buyers signed up for these loans in droves last year because of their low rates and flexible repayment options. The total dollar amount of originated private jumbo mortgages—which exceed $417,000 in most parts of the country and $625,500 in pricey housing markets such as New York and San Francisco—was on track to be the highest since 2007.”

Friend or Foe? Mortgage Rules Show 2 Faces
“The home loan industry now has to adapt to new mortgage rules that offer borrowers much needed protection against lender abuses and reckless lending standards. But the changes may not please all borrowers.”

U.S. Posts Record December Surplus on Fannie Mae Payments
“The U.S. posted a record December budget surplus as higher payroll taxes, payments from Fannie Mae and Freddie Mac, and a declining unemployment rate helped improve the government’s finances.”

Credit standards going easy on jumbo mortgages
“Despite overall originations hitting the lowest level since 2010, the past year witnessed a significant increase in the volume of home equity loans and lines of credit, in addition to originating the best-performing mortgages on record, the first report from Black Knight Financial Services, previously known as Lender Processing Services, found. For jumbo mortgages, however, it’s a completely different story.”

Fannie Mae launches second risk-sharing transaction
“Fitch Ratings released a pre-sale report expecting to rate the risk-sharing portion of the Fannie Mae Connecticut Avenue Securities at triple-B.”

Investors in PennyMac gain larger stake
“A group of investors acquired enough of a stake in PennyMac Financial Services (PFSI) to prompt a series of new filings with the Securities and Exchange Commission.”

Slump in retail sales and more economic predictions coming this week
“The Commerce Department will release its retail sales report for December at 8:30 a.m. ET Tuesday, but early warning signs show that it’s likely to show a holiday slump.”

How bad will QM hurt homeowners and home buyers?
“The House Financial Services Committee will hold Tuesday morning the second in a series of meetings on the effects of the Consumer Financial Protection Board’s Qualified Mortgage rule, a rule that only went into effect two business days prior to the scheduled hearing.”

Report: Delinquencies Dip, Lines of Credit Rise
“Home equity loans and lines of credit are on the rise, as delinquencies continue to plummet across the nation, according to recent research from Black Knight Financial Services. The data and analytics division of the company—formerly the LPS data and analytics division—released its November Mortgage Monitor Report, which found that total delinquencies are at extremely low levels in every product category.”

Wells Fargo Economists’ Outlook at Odds with Recent Home Price Data
“What’s ahead for housing in 2014? The economics team at Wells Fargo Securities is forecasting a pull-back in investor activity, and with the fundamentals underlying housing demand, job and income growth, and household formations making only modest strides in a relatively thin market, they say to look for modest gains in home sales and residential construction with price appreciation decelerating back into the mid to low single digits.”

GSE Forecasts ‘Continued but Measured Housing Recovery’ in 2014
“Recent trends in new home sales suggest the housing sector will double its contributions to the country’s economic growth in 2014—though the outlook for existing-home sales isn’t as bright.”

The Bullish Economic Story May Be On The Verge Of A Change
“The 10-year Treasury yield closed Monday at 2.82%, below the 2.88% level where it closed on Dec. 18, when the Federal Reserve announced it would begin tapering down its quantitative easing program.”

These Skinny Micro Housing Designs Would Let You Live Between Buildings
“With more and more people choosing to live in cities, there is less and less affordable housing available, meaning that some municipalities are trying out things like micro-housing or relaxed zoning laws to meet up with the demand.”

Berkshire County real estate seller using drones
“RICHMOND, Mass. (AP) — A Berkshire County real estate company is using a new tool to market its high-end properties — aerial drones.”

From offices to shopping centers, commercial real estate in high demand
“Coming off one of the strongest years on record, Houston’s commercial real estate market is poised for more growth in 2014, industry experts said today.”

China to Establish System for Tracking Real Estate Ownership
“SHANGHAI—China plans to establish a national system for tracking real-estate ownership and sales transactions, a key step in its effort to tame a property sector that threatens to price many Chinese out of the housing market.”

Progress has been slow in cleaning up mortgage mess
“After multiple enforcement actions, lawsuits and multibillion-dollar settlements, state and federal regulators are making sluggish progress in their efforts to prod banks to help mortgage borrowers.”

Richmond seeks partners for plan to seize mortgages using eminent domain
“After months of trying, members of the Richmond City Council have been unable to muster the supermajority of votes they need to enact a controversial plan to use eminent domain to seize underwater mortgages and slash the amounts that borrowers owe.”