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Real Estate News 2.27.14

Here’s where home prices are about to take off

“FORTUNE — “The time to buy is when there’s blood in the streets.” That quote, attributed to 18th-century financier Baron Rothschild, means that buying when everyone else is panicking is a great idea, as that’s when prices are at their lowest.”

It’s still a lot cheaper to buy than rentIt’s still a lot cheaper to buy than rent

“FORTUNE — Home prices have been rising steadily for more than year, with the most recent Case-Shiller index reading showing the biggest year-over-year increase in nearly a decade. But that doesn’t mean that it is a bad time to buy.”

Freddie Mac profit moves U.S. housing bailout further into black

“(Reuters) – Freddie Mac (FMCC.OB) said on Thursday it will soon send the U.S. Treasury a $10.4 billion dividend after posting a ninth straight quarterly profit, putting taxpayers further into the black on their bailout of the mortgage giant.”

Realtors® Oppose Tax Plan to Limit Mortgage Interest Deduction, Real Estate Provisions

“WASHINGTON (February 26, 2014) – The following is a statement by National Association of Realtors® President Steve Brown…”

Durable goods orders mixed, jobless claims rise

“(Reuters) – Orders for long-lasting U.S. manufactured goods excluding transportation unexpectedly rose last month as did a gauge of business spending plans, but that will probably not change views that factory activity is slowing.”

Foreclosures Climaxing in New York-New Jersey Market: Mortgages

“Feb. 26 (Bloomberg) — The epicenter of the U.S. foreclosure crisis is shifting to New Jersey and New York, threatening a housing rebound in one of the country’s most densely populated areas.”

Camp to Cap Mortgage Benefit While Ending State Tax Break

“A tax plan from House Ways and Means Committee Chairman Dave Camp would further limit the mortgage-interest break and end the deduction for state and local taxes, according to a nonpartisan congressional summary.”

BofA under probe over US housing program, forex

“Bank of America may have a new mortgage problem on its plate, saying on Tuesday that federal investigators are looking into whether the bank violated requirements of a U.S. government housing program.”

WellFargo cuts 700 mortgage jobs

“Wells Fargo & Co. said Wednesday that it is cutting 700 employees, including 203 in the Twin Cities, as demand for mortgages continues to shrink.”

Potential Conflicts Cited For Mortgage Servicer

“New York State’s top banking regulator said he had new concerns about Ocwen Financial, one of the nation’s largest mortgage servicing companies, creating another regulatory headache for the company.”

Senate committee advances repeal of mortgage registration fees

“A bill that would repeal mortgage registration fees moved forward from a Senate committee Wednesday.”

Morgan Stanley offers $275M to absolve bad mortgage bonds

“Morgan Stanley is finalizing a $275 million agreement with the U.S. Securities and Exchange Commission to settle the SEC probe into the bank’s toxic subprime mortgage bond trades going back to 2007.”

Bank earnings are booming, but there’s a big problem

“Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. posted the 17th quarterly increase since 2009 due to an $8.1 billion decline in loan-loss provisions in the fourth quarter of 2013.”

Federal judge sides with Fannie, Freddie shareholders

“Court of Federal Claims Judge Margaret Sweeney granted the Fairholme Funds motion for discovery against America.”

Institutional investor home buys hit 22-month low

“Institutional investor home sales continue to decline as a portion of all home sales, hitting a 22-month low.”

The key to successfully growing your mortgage lending operation

“The mortgage market is quickly drying up and lender competition is heightening in order attract the remaining drops of business thus making lender relationships more important than ever.”

4 game changers for selling homes this tax season

“New-homes sales reached a five-year high Wednesday morning, showing that buyers are still jumping into the market.”

Lansner: Time to sell real estate?

“If the local real estate market is taking a breather this winter after a fast rebound, should you be thinking of selling?”

Index: L.A.-O.C. home prices up 20.3%, but market is leveling off

“Home prices in the Los Angeles-Orange County area jumped 20.3 percent in December compared with a year earlier, the 18th consecutive month of annual gains, housing figures released Tuesday show.”

Los Angeles Real Estate Heats Up With Mogul Money

“Numbers don’t lie. Like box office grosses, home sales reflect economic reality. Per real estate news firm Data Quick, year-over-year residential real estate sales prices are up 18.4% across the Los Angeles area in early 2014 and the inventory of homes and condos for sale remains low. At the upscale end of the market, often in those Los Angeles neighborhoods favored by showbizzers, demand is the strongest, resulting in multiple offers over asking price for contempo properties and select empty lots.’

HUD AND CENSUS BUREAU REPORT NEW RESIDENTIAL SALES IN JANUARY

“WASHINGTON – Sales of new single-family houses in January 2014 were at a seasonally adjusted annual rate of 468,000, according to estimates released jointly today by the U.S. Department of Housing and Urban Development and the Census Bureau.”

The myth of real estate and economic mobility: Americans face lowest geographic mobility in over two generations. Is staying put the new American Dream?

“Americans like to believe that they are movers and shakers and will follow the opportunity wherever it may be. The idea of selling your home and moving across the country for a great new job opportunity seems to be a common notion of how things happen. However the data shows us a very different reality. Americans are largely staying put. We can blame this on negative equity but this trend actually goes back to the 1980s. In fact, American mobility is at all-time record lows. What this means is people are staying put like our golden handcuffed baby boomers. I was thinking about this carefully and I think one major reason for this is the massive subsidies given to homebuyers creates incentives for staying put. Think of California with Prop 13 and the ability to write-off many housing items including interest when being a homeowner. The system is setup to keep people locked in. For a young person in a high cost of living area the best economic option may be to move and start in another state. However the facts point to a very different picture.”

Freddie Mac Prices $1 Billion Reopening of .875% Three-Year Reference Notes® Security

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it auctioned a $1 billion reopening of its .875% three-year USD Reference Notes® security that matures on February 22, 2017. The stop yield for the issue, CUSIP 3137EADT3, was .724%, priced at 100.442508. The bid-to-cover ratio was 4.8 to 1.”

Fixed Mortgage Rates Continue Gradual Climb Higher

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates mixed with the fixed-rate products moving higher for the fourth consecutive week, while adjustable rate mortgages eased.”

Freddie Mac Announces $1 Billion Reopening of .875% Three-Year Reference Notes® Security

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it plans to launch a $1 billion reopening of its .875% three-year USD Reference Notes® security that matures on February 22, 2017. The issue will price today, Thursday, February 27, 2014, and will settle on Monday, March 3, 2014.”

Freddie Mac Reports Fourth Quarter and Full-Year 2013 Financial Results

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) today reported its fourth quarter and full-year 2013 financial results and filed its annual Form 10-K with the U.S. Securities and Exchange Commission.”

CFPB Director Calls for Increased Financial Literacy

“For Richard Cordray, the equation is simple: In the Land of the Free and the home of the free market, American citizens should be as informed about and capable of self-governance in their personal finances as they are in the democratic process, especially when it comes to borrowing for a mortgage.”

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Real Estate News 2.25.14

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Real Estate News 2.25.14

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Real Estate News 2.21.14

Spotlight on economy: More home sales blues?
“Severely cold weather in January stopped many construction projects from breaking ground and slowed work on existing sites. The cold snap probably kept more house hunters indoors instead of making the rounds at open houses.”

$187B bailout now profitable. Surprised?
“U.S. taxpayers have recouped all of the $187 billion they gave mortgage giants Fannie Mae and Freddie Mac in one of the most expensive bailouts of the financial crisis.”

Housing: Top 10 most affordable small cities
“Latest from the Housing Opportunity Index from the National Association of Home Builders and Wells Fargo.”

Tech workers squeezing out renters in San Francisco, Seattle
“Low- and middle-income residents of San Francisco, Oakland, Seattle and other metro areas, are getting pushed out of their homes as an influx of deep pocketed tech workers drive up rents.”

Regulators fear more bad mortgage practices
“You may have gotten a mortgage through the local branch of one of the megabanks, but did you know there’s a good chance your bank turned around and sold the rights to service your loan to somebody else?”

Wall Street Landlords Buy Bad Loans for Cheaper Homes
“Wall Street-backed landlords are showing a greater appetite for bad mortgages as a source for cheap property as the supply of foreclosed homes declines while housing prices continue to climb.”

MBA CEO David Stevens: CFPB’s Antonakes ‘went just a bit too far’
“Steven Antonakes, deputy director of the Consumer Financial Protection Bureau, walked away from a silent, shocked audience after his speech Wednesday morning at the Mortgage Bankers Association’s National Mortgage Servicing Conference & Expo in Orlando.”

Foreclosure Starts Fall to 2006 Level as Home Prices Rise
“The rate of new foreclosures in the U.S. dropped to the lowest level in eight years as rising property prices erased negative equity and allowed more delinquent homeowners to sell without losing money.”

Another ‘Subprime’ Adventure? Behind Wells Fargo’s Move To Ease Mortgage Lending
“Wells Fargo & Co. announced this month it would reduce minimum credit scores for certain mortgages eligible for government backing, prompting some declarations that subprime mortgages were making a comeback.”

Is Homeownership a Fleeting American Dream?
“Opinion: People of color are also disproportionately impacted by an overly restrictive housing market; between 2007 and 2012, loans to African Americans and Latinos have fallen by 73 percent and 66 percent respectively.”

Leading data signal ‘resilient’ economy in 2014
“WASHINGTON (MarketWatch) — The economy will likely “remain resilient” in the first half of 2014, with underlying conditions improving, the Conference Board said Thursday as it reported monthly growth and stable trends for its gauge of leading economic indicators.”

Apartment Sector Healthy, But Fundamentals Moderate
“The multifamily sector continues to perform well four-plus years after its recovery began, two analysts reported.”

NFIP reformists fire warning shot at Congress
“It may be just a rumor of war they’re hearing, but Taxpayers for Common Sense and SmarterSafer.org are firing a warning shot across the Capitol about plans they say are in the works for yet another vote on the Biggert-Waters Flood Insurance Reform Act of 2012.”

Wingspan CEO: 3 keys to success for servicers
“Dallas-based Wingspan Portfolio Advisors finished this past year with several key profile acquisitions that significantly increased the company’s size and revenue, but that’s not where the storybook ends.”

Asia investors bullish about private real estate
“Private real estate investors headquartered in Asia look set to be very active in the asset class over the next 12 months, according to an investor survey by Preqin, a leading alternative asset data and intelligence analysis firm.”

The real estate 1% and the S&P 500 are secretly connected
“Analyst Sam Khater at CoreLogic (CLGX) walks through a look comparing ultra high-end home sales versus homes sales on the lower end of the pricing segment.”

Apollo charts new course for loan strategy in 2014
“Apollo Residential Mortgage is preparing to provide loans to third parties that are purchasing residential properties with plans to resell the properties, and will then probably finance purchases by next buyers, CEO Michael Commaroto said on a conference call today.”

Student loans pinching home sales? Real Estate Open House
“This is the inaugural Front Porch open house, a weekly roundup of real estate news and information for home buyers and sellers. I’ll be checking the comments throughout the day Friday, so leave your real estate questions or links to real estate news stories I missed.”

How to hunt for the right real estate agent before hunting for a home
“If you’re planning to purchase a home in the Washington area this spring, you may face competition from other buyers for the still-limited inventory in the market.”

Serfdom nation: First time where a six year period of household formation of renters outpaced that of homeowners. Purchase applications back to levels last seen 20 years ago.
“I think it is safe to say that investor activity in the housing market has changed the face of real estate buying.  Back when the crisis hit in 2007, some analysts were cheerleading the hedge fund crowd as a tiny blip in the market.  It is hard to call it a blip when 30 to 40 percent of all purchases are going to investors for close to half a decade.  A recent analysis from RealtyTrac found that the estimated monthly home payment for a regular three bedroom home (costs include mortgage, insurance, taxes, maintenance, and subtracting the income tax benefit) rose an average of 21 percent from a year ago in 325 US counties.  What about household incomes?  That is another story.  So it is no surprise that we are largely becoming a nation of renters.  It is also no shocker that young households are largely unable to begin household formation via buying a home.  Many are living with parents well into “young” adulthood.  For the first time in history, we had a six year stretch where we added more renter households than that of actual homeowners.”

Fewer Prospective Homeowners to Clash Over Homes
“Home buying competition rose over the month of January but was down from last January, according to national real estate brokerage Redfin, which took the year-over-year decline as a sign that low inventory and rising prices are thwarting demand in the housing market.”

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Real Estate News 2.17.14

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Real Estate News 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 1.30.2014

U.S. seeks $2.1 billion from Bank of America
“The Justice Department is seeking $2.1 billion in fines from Bank of America related to mortgage fraud perpetrated by Countrywide Financial before it was purchased by BofA.”

Why the OCC is worried about looser lending standards
“A new report from the Office of the Comptroller of the Currency (OCC) is a definite study in contrasts.”

Disappointing pending home sales blamed on winter weather
“Is it the winter weather, a slowdown in housing or a combination of both that caused real estate contract signing to cool in December?”

Second REO-to-rental deal to raise millions, and questions
“With Bloomberg breaking news Tuesday night that American Homes 4 Rent, the nation’s second-largest single-family landlord, has tapped Goldman Sachs (GS) to arrange a bond backed by house rental payments, it looks like REO-to-rental as an asset class is here to stay a while.”

Don’t look now: Fannie, Freddie, Ginnie bonds are on a roll
“While the Federal Reserve continues to reduce holdings of mortgage-backed securities and Treasurys, the mortgage bond market is reacting well. Very well.”

Did Freddie just prove multifamily is making a comeback?
” Multifamily seems to be the buzzword of January.

Every time you turn around, there is another analyst report suggesting the sun is either shining on or about to shine on multifamily properties.”

Foreclosure Inventory Down 31% in 2013, Slow Progress Expected in 2014
“National foreclosure inventory fell 31 percent year-over-year in December, with 2.1 percent of all homes with a mortgage in some stage of foreclosure, according to CoreLogic’s December National Foreclosure Report.”

Mortgage Rates Down on Tepid Housing Numbers
“Fixed mortgage rates this week moved down to their lowest levels so far in 2014, according to surveys from Freddie Mac and finance site Bankrate.com.”

FOMC Moves Forward on Tapering
“In its first meeting this year, the Federal Open Market Committee (FOMC) voted to once again cut back on the Federal Reserve’s bond-buying program.”

Why the Real Estate Industry Is Interested in Drones, Too
“In this halting, vertigo-inducing video, you can watch a couple of guys from the creative agency Neoscape toy with their newly built drone, outfitted off the Boston Inner Harbor with a GoPro camera…”

Jobless claims rise more than expected
“(Reuters) – The number of Americans filing new claims for unemployment benefits rose more than expected last week, but the underlying trend suggested the labor market continued to heal.”

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Real Estate News 1.29.2014

Borrowers Struggle Despite Equity Gains
“The ongoing price recovery and rise in positive equity around the country has been cause for celebration among many industry commentators—but they’re not much comfort to those who continue to struggle to pay their mortgages, Fitch Ratings says in a new release.”

Business Ticks Up at Freddie Mac
“Freddie Mac’s mortgage business grew—albeit slowly—in December, capping the year with an overall negative growth rate.”

As Broncos, Seahawks Face Off, Analysts Compare Markets
“As the Super Bowl approaches, the sports world is abuzz with comparisons of the two teams facing off Sunday as analysts compare everything from the number of veteran players to yards gained during the season. At the same time, ZipRealty, a national online real estate brokerage based in Emeryville, California, looked at the stats to compare the two teams’ home housing markets.”

Case-Shiller Indices Up 13.7% Year-on-Year
“Despite experiencing a slight downturn—the first monthly decline in a year—home prices still turned in a strong performance in November, according to the S&P/Case-Shiller Home Price Indices released Tuesday.”

Obama offers new ‘MyRA’ retirement accounts
“President Obama on Tuesday offered up a new kind of “starter” retirement accounts aimed at employees of companies that don’t offer such plans.”

Obama speech highlights gap between his goals and his resources
“The 2014 State of the Union address emphasized policies aimed at closing the income gap, but Obama has limited ways to achieve that.”

Hedge Funds See Cheap Homes With Soured Loans: Mortgages
“After David Sherr left Lehman Brothers Holdings Inc. in 2007 to start a hedge fund, he considered buying delinquent mortgages to profit from the U.S. housing collapse. Following years of passing on the debt, he now sees the loans as one of the best ways to play the recovery.”

Jefferies to Pay $25 Million Over Mortgage Trading Probe
“Jefferies Group LLC, the investment bank owned by Leucadia National Corp. (LUK), agreed to pay $25 million to settle U.S. criminal and civil probes of suspected abuses in the trading of mortgage-backed securities after the financial crisis.”

Goldman Sachs Said to Lead American Homes 4 Rent Bond Deal
“Jan. 29 (Bloomberg) — American Homes 4 Rent, the second-largest single-family landlord in the U.S., has selected Goldman Sachs Group Inc. to arrange a bond backed by rental home payments, less than three months after Blackstone Group LP (BX) completed the first sale of its type.”

D.R. Horton Soars After Reporting Strong January Sales
“D.R. Horton Inc. (DHI), the largest U.S. homebuilder by revenue, rose the most in a year after reporting that it’s charging more for houses and that sales are strengthening heading into the busiest season for demand.”

MBA President and CEO David Stevens Comments on The State of the Union
“David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), today issued the following statement…”

Mortgage Applications Essentially Flat in Latest MBA Weekly Survey
“WASHINGTON, D.C. (January 29, 2014) — Mortgage applications decreased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 24, 2014.”

Senate Breaks Filibuster on Flood Insurance Bill
“The Senate voted late Monday to advance a bill that would prevent insurance premium hikes in many flood-prone areas that could discourage home sales and disrupt real estate markets.”

Higher rates loom for some modified mortgages
“Homeowners who got government loan modifications during the financial crisis will begin to see monthly payments rise this year, government report says.”

CFPB Director Richard Cordray just told off the House Financial Services Committee
“Consumer Financial Protection Bureau Director Richard Cordray appeared before the House Financial Services Committee this morning for his Semi-Annual Grilling (I mean Report) before Congress.”

New argument emerges in mortgage fee debate
“A new argument has emerged in the debate over Kansas counties’ mortgage registration fees the day before hearings on a bill to repeal such fees.”

Durable goods orders stumble, but consumers perk up
“(Reuters) – Orders for long-lasting U.S. manufactured goods unexpectedly fell in December as did a gauge of planned business spending, casting a shadow on an otherwise bright economic.”

Why financial data security is the next hot button issue
“Data security breaches at Target, Neiman Marcus and other retailers do more than jeopardize the financial well-being of consumers, they also red-flag what could very well be the next hot-button banking topic in Congress and raise the issue of how many firms collect this data while lacking the appropriate systems to protect it.”

Top 10 cities to avoid natural disasters, unless you count blizzards
“Natural disasters have dominated the news in the last few years, with tornados, earthquakes, hurricanes and floods devastating lives and homes across the country. Which makes us wonder — where are the safest places to live?”

Home prices flattening in the county
“San Diego County home prices were nearly flat from October to November, but are still up 18.7 percent over the year, the S&P/Case-Shiller Home Price Index showed Tuesday.”

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Real Estate News 1.24.2014

7 setbacks for the middle class
“Five years into his presidency, Barack Obama is still falling short of his number one goal: to fix the economy for the middle class.”

Will Obama push housing reform in SOTU? — Not expected this year, but momentum matters — Lew live from Davos
“WILL OBAMA PUSH HOUSING REFORM IN SOTU? — POLITICO’s Jon Prior and Kate Davidson preview the big speech next week: “President Obama will deliver his State of the Union address on Tuesday and in the world of finance there is one question that keeps popping up: Will he mention Fannie Mae and Freddie Mac? In August the president laid out his case for getting rid of the taxpayer-owned mortgage giants and putting in place a new housing finance system. But the administration has mostly been quiet since. Obama could change that by calling for an overhaul of the mortgage market Tuesday night.”

Lenders vocal about negative impacts of Dodd Frank mortgage rule
“Daniel Weickenand, CEO of Memphis-based Orion Federal Credit Union, has testified on behalf of the National Association of Federal Credit Unions that federal mortgage rules that went into affect Jan. 10 could hurt consumers’ ability to access credit and ‘hamper the ability of credit unions to meet their members’ needs.'”

Leading Indicators Rose in December as U.S. Economy Improved
“The index of U.S. leading indicators rose in December, a sign the world’s largest economy is poised to keep expanding in 2014.”

FHFA: Home Price Appreciation Almost Flat In November
“More evidence that home price appreciation is stabilizing: U.S. home prices increased only 0.1% in November, on an adjusted basis, compared to October, according to the Federal Housing Finance Agency’s (FHFA) monthly House Price Index (HPI).”

Rent-to-Own: New Mortgage Rules Can Make This More Appealing
“New mortgage underwriting criteria went into effect Jan. 10 requiring a debt-to-income ratio of less than 43 percent for most qualified mortgages. Even if you don’t qualify for a mortgage under the current lending regulations, renting may not be your only option. Alternatives such as rent-to-own and contract-for-deed transactions make homeownership possible for those who may not meet mortgage-underwriting standards.”

Are rental bonds driving up the rent?
“Bonds backed by rental payments may be gaining investor attention, but they’ve also caught the eyes of a few critics along the way.”

Builders unscathed by rising loan limits
“Despite the Federal Housing Administration (FHA) reducing the maximum loan limits for mortgages written in certain parts of the country, the adjustment has had little real impact on home builders.”

Taking smaller bites, Freddie Mac pursues FHFA mandate
“Freddie Mac released its monthly-volume summary report Friday, and it shows the aggregrate unpaid principal balance of the GSE’s mortgage-related investments portfolio declining by $5.7 billion in December.”

ABS Vegas: Love or hate REO-to-Rental in 2014
“The REO-to-Rental model is the newest asset to gain investors’ attention, but what does the future look like for these particular deals?”

Buying a Home? Bring a Suitcase Full of Cash: Ritholtz Chart
“The chart above comes form the RealtyTrac Residential & Foreclosure Sales Report. It should come as no surprise that as rates rise, so too do all-cash purchases.”

Gundlach Counting Rotting Homes Makes Subprime Bear
“For Jeffrey Gundlach, the U.S. housing recovery isn’t so rosy.”

Stable real estate prices hide big changes in many city neighborhoods
“It felt like 2013 was a crazy year for real estate, with the flood of all-cash buyers, Billionaire’s Row on 57th St., shrinking inventory and skyrocketing prices.”

Real Estate Gobbled Up By Investors Worries Inland Empire Congressman
“A congressman who represents several Riverside County communities wants officials to look into whether the rise of investor owned properties in the area is creating an ‘unsustainable bubble that will wreak havoc when it bursts.'”

Born here? You’ve already struck it rich
“The American dream of climbing the income ladder is alive and well, according to new research on income disparity. But a lot these days depends on where you grow up.”

Decline in Foreclosures Outpaces Decline in Loan Modifications
“An estimated 44,000 homeowners received permanent loan modifications from mortgage servicers during the month of November under both proprietary servicer programs and the government’s Home Affordable Modification Program (HAMP), HOPE NOW reports. While that total represents a 12 percent decrease from the 50,000 loan mods completed in October, the most recent data show a steeper 20 percent decline in foreclosure sales and a 17 percent decline in foreclosure starts between October and November.”

Economists Outline What to Watch for in the Real Estate Market of 2014
“Experts at Freddie Mac and Equifax expect falling unemployment and economic growth to keep the housing market steady in 2014. This, despite climbing interest rates and anticipated growth in housing prices nationwide.”

Despite Fewer Foreclosure Starts, Distressed Sales Rose in 2013
‘Despite declining foreclosure starts over the year, distressed sales made up a higher percentage of overall home sales in 2013 than they did the previous year, according to the U.S. Residential & Foreclosure Sales Report released Thursday by RealtyTrac. The report also revealed an uptick in cash purchases at the close of the year.”

Recovery Expected to Enter ‘Middle Innings’ in 2014
“While the housing market is still far from “normal,” it is inching that way, according to a report released Thursday from Zillow. Last year’s skyrocketing home price appreciation, frenzied demand from investors, and high tide of negative equity are all expected to subside somewhat this year, according to the real estate company.”

Freddie Mac Issues Monthly Volume Summary for December 2013
“MCLEAN, VA–(Marketwired – Jan 24, 2014) – Freddie Mac (OTCQB: FMCC) today issued the company’s Monthly Volume Summary for December 2013.”

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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.'”