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Real Estate News 10.09.2014

1. 5 things to consider before tapping your home for cash
“During the housing bust, many homeowners were cut off from a popular source of funds: their homes.”

2. Drop in jobless claims points to labor market strength
“(Reuters) – The number of Americans filing new claims for unemployment benefits fell last week to nearly its lowest level since before the 2007-09 recession, a sign of growing steam in the U.S. labor market.”

3. Southern California office leasing market boosted by job growth
“Job growth in Southern California finally produced a robust quarter of leasing for office landlords, who were able to fill long-vacant space and push up rents.”

4. Suit asks why U.S. bailout of AIG wasn’t more generous
“The trial pitting a fallen financial titan against an array of former high government luminaries provides a through-the-looking-glass view of the financial credit crisis of 2008 — a view that only makes sense on Wall Street.”

5. U.S. Mortgage Application Volume Up
“The average number of mortgage applications for the week ended Friday rose 3.8% from the week earlier, according to the Mortgage Bankers Association weekly survey.”

6. Why Getting a Mortgage Will Remain Hard for at Least 3 More Years
“NEW YORK (TheStreet) — Americans will likely have to wait at least three more years before it becomes any easier to get a mortgage.”

7. Rebirth of housing market calls for moving past Fannie and Freddie
“This fall marks the seventh anniversary of the federal government’s move to take conservatorship of Fannie Mae and Freddie Mac, and the nation should thank the government-sponsored enterprises (GSEs) for restoring confidence and liquidity in mortgage finance during a time of crisis. Without their intervention and involvement, our nation’s housing system would have fared far worse than what we experienced.”

8. Op-Ed: Loan File Size Increasing at ‘Alarming’ Rate
“Lenders are gathering an unprecedented number of required documents to originate mortgage loans and comply with new regulatory requirements. To be sure, the regulatory environment saps efficiency and profitability at the same time that loan volumes are falling.”

9. Real Estate Investment Up; Led by NYC–Again
“New York remains the world’s largest real estate investment market for the fourth consecutive year. Volumes there rose nearly 11 percent to $55.4 billion–7 percent of global market share–in the 12 months leading up to June. Second-place London, which registered $47.3 billion of investment, closed the gap on New York thanks to a 40.5 percent increase in activity over that year, becoming the largest global market for cross-border investors. With $35.5 billion in investment, Tokyo reclaimed the third position from Los Angeles ($33.1 billion), which dropped to fourth while San Francisco ranked fifth with $23.8 billion invested.”

10. Find out why West beats East in home price appreciation
“It used to be gunfighters would brag about being the fastest gun west of the Mississippi River, and now it’s all about home price growth.”

11. Auction.com launches Auction Finance to spur investor activity
“Seeking to expand on its pool of potential real estate buyers, Auction.com has created a new division to help commercial and residential real estate investors obtain financing.”

12. Freddie Mac: Mortgage rates drop near yearly lows
“Mortgage rates slightly fell back down following the Federal Reserve’s latest tapering announcement, dropping down near their yearly lows, Freddie Mac’s Primary Mortgage Market survey results showed.”

13. Mortgage applications for new homes flat in September
“Mortgage applications for new home purchases remained unchanged relative to the previous month, according to the Mortgage Bankers Association Builder Application Survey data for September 2014.”

14. Debt among youngest, oldest shifted dramatically in past decade
“A new TransUnion study found that the consumer loan wallet – the composition of loans that people typically carry – has materially changed for both the youngest and oldest segments of the population during the last decade.”

15. Freddie Mac Expands Into Small Apartment Mortgages
“Freddie Mac is building a business to originate small apartment loans, between $1 million and $5 million, as part of its mandate to support affordable housing.”

16. If Congress Won’t End GSE Conservatorship Soon, FHFA Can
“Last week, a D.C. District Court Judge struck down a lawsuit brought by shareholders in Fannie Mae and Freddie Mac who had been seeking to stop the government from taking the profits from the two agencies. The suit will be appealed, but setting aside the legal disputes for a moment, the U.S. government still has a big issue to confront: what to do about the two government-sponsored enterprises.”

17. Taper Tantrum Erased With Mortgage Yields at 16-Month Low
“In the market for U.S. mortgage bonds, it’s almost as if the turmoil that became known as the taper tantrum never happened.”

18. REGION: Housing boom targets ‘silver tsunami’
“The Inland region’s newest housing boom is being built on its oldest residents.”

19. REAL ESTATE: Slower gains predicted in 2015 for home sales, prices
“Reset, California.

That could be the theme of a real estate forecast that California Association of Realtors chief economist Leslie Appleton-Young delivered Tuesday for 2015, as the real estate industry takes the shape of a more traditional market.”

20. It’s easy to pay someone else’s property tax
“Anybody can pay anyone else’s property tax, and it’s easier than ever with the recently enhanced online system in San Diego County.”

21. Best College Towns for Buying Rentals, Flipping in 2014
“RealtyTrac has ranked the top 10 college towns for buying rental properties, and the top 10 college towns for flipping in 2014. For these rankings, RealtyTrac looked at public four-year universities with a total 2012 enrollment of 20,000 or more based on data from the National Center for Education Statistics and located in counties with an unemployment rate below the national average of 6.2 percent in June 2014.”

22. Boston Broker Sends Agents to Asia to Promote Local Real Estate
“I was interviewing Boston-area broker Tom Truong for an article spotlighting the Boston market for the August issue of RealtyTrac’s Housing News Report when he made this comment that took me a bit by surprise.”

23. L.A. and O.C. least affordable rental markets: Rental market is at odds with weak employment growth and weak income figures.
“It should come as no surprise that the L.A. and O.C. housing markets are the least affordable in the entire nation. That is right, even more unaffordable than San Francisco or New York. Why? Because even though New York and San Francisco have higher rental costs, people make more money. Should be common sense but it should be apparent that people in SoCal like stretching their budgets. It might be the Hollywood allure of “acting” rich instead of actually being wealthy. Fake it till you make it. Hence the broke older homeowners with their boomerang adult-children coming to live back home. Rents are paid by net income. There is no extra mortgage leverage that you can squeeze out of a rental payment. You either make the monthly payment or you don’t. And seeing this data simply confirms that many in SoCal would rather act the role of being rich instead of taking steps to being wealthy.”

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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 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 1.28.2014

Plan to downsize your home? Don’t wait
“Moving to a smaller home in later life is a lot like starting a diet: It sounds like a good idea – but one that can always wait until tomorrow. In most cases, though, retirees can benefit from downsizing sooner rather than later.”

New-home sales fade in December after best year in five
“WASHINGTON (MarketWatch) — Sales of new single-family homes fell in December, but the whole of 2013 saw the highest sales level in five years, the government reported Monday.”

How spending has fallen under Obama
“It’s unlikely that President Obama will ever shake his reputation among Republicans as a big spender. But a key fact counters that rap.”

African-Americans squeezed out of the housing market
“More African-Americans are being squeezed out of the housing market.”

Will Real Estate Investing Slow In 2014?
“There’s little doubt that the real estate marketplace is in the midst of change. The huge price run-up seen during the past year or so is plainly cooling, interest rates have risen from the record lows seen in 2012 and higher prices may be causing some institutional investors to slow their purchases.”

Will Mortgage Tax Relief Die In 2014?
“An important law which has eased the financial fall-out from the mortgage crisis has ended. The Mortgage Forgiveness Tax Relief Act expired on New Year’s Eve and unless the legislation is extended large numbers of troubled borrowers will suddenly face huge new taxes.”

Rental house owners can profit from a professional manager
“It’s one thing to manage a rental house when it’s nearby. But it’s another process entirely when the rental is in a distant vacation retreat. Unfortunately, many second-home buyers find that out the hard way.”

Home prices show signs of topping out
“Home prices are showing signs of topping out: The S&P/Case-Shiller index posted its first month-over-month decline in 10 months on Tuesday.”

Home prices: Your local forecast
“After 2013’s big gains, home prices are expected to moderate this year. CoreLogic Case-Shiller expects prices to increase by the mid-single digit percentages for the 12 months through September. See how your market is expected to fare.”

Many renters just say no to buying homes
“(Reuters) – With a wife and a 10-year-old daughter, Matthew Amster-Burton appears to be one of the likelier people to buy a house, but the Seattle food writer says he has no interest in doing so.”

What business expects in the State of the Union
“President Barack Obama will likely talk about improving the broad U.S. economy as well as bolstering specific sectors when he gives his State of the Union speech on Tuesday night. Trade groups around Washington are hoping for a coveted mention, and some are confident the president will talk about working with their industry.”

Yellen Faces Test Bernanke Failed: Ease Bubbles
“Janet Yellen probably will confront a test during her tenure as Federal Reserve chairman that both of her predecessors flunked: defusing asset bubbles without doing damage to the economy.”

Wall Street Bond Dealers Predict Plunging Treasury Sales
“The U.S. will borrow less money this year than at any time since 2008, validating the nation’s decision to go deeper into debt to combat the financial crisis as faster growth shrinks the deficit, Wall Street’s biggest bond dealers say.”

Banks ‘Chase’ Mortgage Loans With Mobile Apps for Home Buyers
“Not long ago, a financial institution couldn’t easily target consumers who were shopping for a new home. But with new online and mobile tools available today, banks and credit unions can be on the front edge of the mortgage application process.”

How QM fails to deliver
“Although the Qualified Mortgage and ability-to-repay rules are designed to halt excessively risky lending, the new guidelines are likely to fall short on risk restraint when comparing their reality to the expectations of the Consumer Financial Protection Bureau, said Ed Pinto, resident fellow and co-director of the American Enterprise Institute’s International Center on Housing Risk.”

FHA Turns to Residual Income Test to Qualify Borrowers
“The Federal Housing Administration has elected to use the Department of Veterans Affairs’ residual income test as a new compensating factor to qualify borrowers with high debt-to-income ratios.”

New home sales fall, but private sector expands
“(Reuters) – Sales of new U.S. single-family homes fell more than expected in December, but lean inventories and steady price gains suggested the housing market recovery remained intact.”

Is this what’s holding back the RMBS market?
“What is the state of the residential mortgage-backed securities market going into 2014?”

Fixed-rate mortgages tumble in popularity
“Adjustable-rate mortgages are gaining in popularity with interest rates on 30-year, fixed-rate mortgages trending higher these days.”

We couldn’t believe which states have the most late mortgages
“Black Knight Financial Services says December was a good month for foreclosures in its latest report.”

JPMorgan reportedly selling $373M prime new issue RMBS
“JPMorgan Chase (JPM) told HousingWire.com the bank will decline comment on a Bloomberg news item suggesting the lender is about to sell $373 million prime new issue residential mortgage-backed securities.”

This Detroit Neighborhood Is So Bad That $1 Homes Could Be A Rip-Off
“Downtown Detroit is seeing a revitalization of sorts sparked by Dan Gilbert’s $1 billion investment in the area. Since 2010, Gilbert’s investment has created an estimated 6,500 jobs in downtown, and, as a result, it’s nearly impossible to find a vacant apartment as residential occupancy rates reached as high as 99.4% for the downtown area.”

Latest Real Estate Numbers Give Reason to Hope
“Housing price data for November, fresh out of the oven, shows dazzling year-over-year gains but a slowing in month-to-month prices. The S&P/Case-Shiller Housing Price Index that’s a composite of 20 metro areas jumped 13.7% year-over-year, beating even the past two month’s 13.3% and 13.6%. The continued march upward will certainly hearten housing bulls, as prices are currently only 20% off their bubble peaks of Spring/Summer 2006. Separately, last week the National Association of Realtors reported that volume was good, with 5.09 million homes sold in all of 2013. In addition to crossing the psychological barrier of the 5 million mark, that’s a 9.1% jump from the year before.”

Tax Geek Tuesday: Why You Should Never Hold Real Estate In A Corporation?
“Sometimes in life, when faced with a given situation, we say things simply as a matter of reflex. For example:”

Sold! The 2013 real estate year in review
“Historically low interest rates and limited inventory in 2013 fueled some of the greatest housing appreciation in San Diego County since the early 2000s.”

Living at home generation: a modern day feudalism awaits young Americans as the prospect of homeownership falls out of grasp.
“The prospect of homeownership for many young Americans seems so far out of reach that many are resigned to be renters for the rest of their lives.  In places like San Francisco and New York even those with decent paying jobs will find it hard to own a piece of real estate.  Obviously many investors with easy money from the Fed realized this end-game and dove into the landlord business with all the gusto in the world.  Wages are weak for the children of baby boomers.  Many in fact are back living at home.  Homeownership seems like a massive pipedream when many don’t even have the income to support a rental.  Of course in California, you have odd inter-family dynamics where some kids are just waiting until the parents keel over so they can inherit the Prop 13 protected World War II built property.  What more do people expect from a narrow focus on the present while ignoring the challenges facing a new generation of Americans?  This structural change has also created a big hit on new home sales.  Unfortunately for many a modern day system of debt serfdom awaits.  For those that have the chance to buy, it may require a massive leap into debt on top of the student debt many already carry.”

Delinquencies Down Nearly 10% in 2013
“Delinquencies picked up slightly in December, according to early data released by Black Knight Financial Services (BKFS)—but overall trends indicate 2013 was a year of improvement.”

FDIC Marks Second Bank Collapse of 2014
“FDIC announced the closure of an Oklahoma bank over the weekend, marking the first insured collapse in the Sooner State in more than a year and a half.”

Federal To Taper Stimulus Again
“The Federal Reserve is scheduled to announce the second cut in its bond-buying program in six weeks as a lackluster December jobs report failed to diminish the central bank’s expectations for solid U.S. economic growth, according to The Wall Street Journal.”

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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 1.23.2014

Home sales hit 7-year high as prices also climb

“WASHINGTON (MarketWatch) — The pace of home sales rose in December, pushing 2013’s tally to the highest level in seven years as an improving economy and pent-up demand boosted demand, according to data released Thursday.”

Top 10 mortgage tips for 2014

“The clock is ticking for buyers and homeowners who want to grab a low mortgage rate in 2014. But if you stay on top of your game, keep your finances in order and act quickly, you can still grab attractive mortgage deals.”

10 hottest housing markets for 2014

“From Oakland, Calif., to Memphis, Tenn., these major metro areas are expected to see the biggest increase in home prices this year, according to CoreLogic Case-Shiller’s latest home price forecast.”

Buyers flocked to foreclosures last year — and many paid all cash

“Bargain hunters scooped up more foreclosed homes in 2013 — and many of them paid all cash.”

Housing Recovery Enters ‘Middle Innings’

“Zillow, Seattle, said national home values finished 2013 on a high note but cautioned that markets have already begun to show signs of a slowdown that could continue through this year.”

Longer foreclosures squeeze investor profit

“Fitch Ratings sent a note today warning that extended foreclosure timelines are increasing the severity of losses in residential mortgage-backed securities.”

Housing looks sunny with scattered clouds

“Although 2014 brings more forecasts of improvement for the housing market, this sunny forecast is not guaranteed to reach all top housing markets.”

ABS Vegas: No housing bubble to see here

“Dispatches from ABS Vegas 2014, being put on by The Structured Finance Industry Group and Information Management Network:”

It’s time to fight over the debt ceiling again

“The U.S. Treasury is likely to exhaust all extraordinary measures to fund the government if members of Congress fail to raise the nation’s debt ceiling by the end of February, Treasury Secretary Jack Lew warned in a letter to the House of Representatives Monday.”

Fixed Mortgage Rates Move Lower for Second Consecutive Week

“MCLEAN, VA–(Marketwired – Jan 23, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates drifting slightly lower for the second consecutive week amid recent reports that inflation remains subdued.”

Baby boomers key to robust real estate market

“‘Build it and they will come.’ That phrase had characterized Clark County’s real estate market for decades. But are we ready to build the housing that will meet the needs of those who help drive the local market: the baby boomers?”

RIVERSIDE: Rising rent, falling income widens affordability gap

“The pool of people who rent their residences has gotten larger in Inland Southern California, and the income gap to pay rent and make home ownership possible has gotten wider, a new report by U.S. Rep. Mark Takano suggests.”

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Today’s Real Estate News 11.6.2013

Home prices show smallest gain since January
“September home prices showed the smallest monthly increase since January, according to real estate data firm CoreLogic.”

Freddie Mac Prices Transaction to Share Residential Mortgage Credit Risk With Private Investors
“MCLEAN, VA–(Marketwired – Nov 5, 2013) – Freddie Mac (OTCQB: FMCC) today priced a $630 million offering of the Freddie Mac Structured Agency Credit Risk (STACR®) debt notes. This offering represents the company’s second STACR offering in which private sources, and not taxpayers, predominately take the credit risk.”

Freddie Mac Receives CMBS Master and Special Servicer Ratings From Fitch
“MCLEAN, VA–(Marketwired – Nov 5, 2013) – Fitch Ratings today gave Freddie Mac (OTCQB: FMCC) Multifamily an initial commercial mortgage-backed securities (CMBS) master servicer rating of CMS2 and affirmed the existing special servicer rating of CSS2-. The CMS2 rating is the highest initial rating ever assigned by Fitch for a master servicer.”

Does Q3 Uptick in Homeownership Reveal Good News or False Hope?
“The Census Bureau’s announcement Tuesday that the national homeownership rate ticked up slightly in the third quarter of this year has some analysts wondering if this is a turning point for homeownership and others labeling slow household formation as a persistent hindrance to a full housing market recovery.”

September Bucks Forebodings of Decelerating Price Gains
“With recent predictions forecasting a falloff in home price increases over the next year, gains nevertheless continued at a strong pace in September, CoreLogic reported Tuesday in its monthly Home Price Index (HPI) report.”

Housing Market Recovery Rate Indicates Less Volatility than Ever
“Renewed profitability in the real estate market lacks the troublesome “irrational exuberance” that caused problems in the past, according to Wade Micoley, president and CEO of WM Enterprises, Inc., and the online auction house Micoley.com.”

Fannie Mae’s Portfolio Continues to Shrink
“Fannie Mae has released its September book of business, revealing further declines as new business acquisitions came to their lowest level in more than a year.

The mortgage behemoth’s book of business totaled $3.163 trillion as of the end of September, shrinking at a compound annual rate of 1.3 percent.”

FHFA Prohibits Servicer Reimbursement
“The Federal Housing Finance Agency (FHFA) announced Tuesday that it has directed the GSEs to prohibit servicers from being reimbursed for expenses associated with captive reinsurance arrangements. The announcement follows a notice that FHFA published in the Federal Register last March regarding its views on these lender-placed insurance practices and accepting public input. The notice also cited concerns that the practices expose Fannie Mae and Freddie Mac to potential losses as well as litigation and reputation risks.”

Rich investors sitting on a pile of cash
“Some of the richest people around the world think the stock market will continue to go up. So why are they sitting on a big pile of cash?”

Most Metro Areas Show Strong Annual Home-Price Growth
“WASHINGTON (Nov. 6, 2013) – The majority of metropolitan areas in the third quarter experienced robust year-over-year price gains, with the national median price showing the strongest annual growth in nearly eight years, according to the latest quarterly report by the National Association of Realtors®.”

Exclusive: EU to levy record fines on Libor banks: source
“(Reuters) – EU antitrust regulators will levy a record fine of at least 1.5 billion euros on six financial institutions, including Barclays (BARC.L) and Royal Bank of Scotland (RBS.L), for rigging the yen Libor interest rate benchmark, a banking industry source said on Wednesday.”

MBA’s Cosgrove Testifies on Housing Finance Reform
“WASHINGTON, D.C. (November 5, 2013) – Bill Cosgrove, CEO of Union Home Mortgage Corp. and Chairman-Elect of the Mortgage Bankers Association (MBA), testified today before the U.S. Senate Committee on Banking, Housing and Urban Affairs at a hearing titled, ‘Housing Finance Reform: Protecting Small Lenders Access to the Secondary Market.'”

Ally Profit Drops as Lender Absorbs Cost of Mortgage Accord (3)
“Ally Financial Inc. (ALLY:US), the auto finance firm majority-owned by U.S. taxpayers, said third-quarter profit fell 76 percent as the company settled U.S. claims for soured mortgages and stopped making new home loans.”

Bernanke Giving Homebuyers Second Chance With Pledge: Mortgages
“This was supposed to be the year that Herb Harrison found a newer, bigger home to replace his current house in Framingham, Massachusetts. Then, in May, mortgage rates began to rise and he put his hunt on hold.”

Fannie, Freddie Ordered to End Reimbursements for Force-Placed Insurance
“The Federal Housing Finance Agency told Fannie Mae and Freddie Mac to end reimbursements to mortgage servicers for expenses related to captive reinsurance arrangements.”

As US Economy Plods and Pay Lags, Companies Profit
” Look at the U.S. economy and you’ll notice an unusual disconnect.

The economy is being slowed by a tight job market, scant pay raises and weak business investment. Yet corporate profits are reaching record highs and fueling record stock prices.”

US planned layoffs rise in October: Challenger report
“The number of planned layoffs at U.S. firms rose 13.5 percent in October on cuts in the pharmaceutical and financial sectors, a report on Wednesday showed.”

Regions Discloses HUD Subpoena Related to Mortgages
“Regions Financial Corp. (RF), Alabama’s biggest bank, received a subpoena from the U.S. Department of Housing and Urban Development tied to the origination of mortgages backed by the Federal Housing Administration.”

Two heavyweight Fed papers argue for stronger policy action
“Nov 5 (Reuters) – Two of the Federal Reserve’s top staff economists make the case in new research papers for more aggressive action by the U.S. central bank to drive down unemployment by promising to hold interest rates lower for longer.”

BofA CEO: Housing Market ‘Fairly Stable’
“Bank of America Corp.BAC +0.22% Chief Executive Brian Moynihan said the U.S. housing market is “fairly stable” at a Wall Street Journal event in New York Wednesday.”

CORONA: Realtors’ home, a decoy for Nigerian rental scam
“Rental scams are mounting in the Inland region, as Heather Stevenson, a real estate broker and team leader for Prudential California Realty, can attest.”

How Federal Reserve and banking policy is accelerating income disparity: Financial obligations ratio soars for renters while declining for homeowners. Problem is, we have less homeowners.
“Current housing policy has been a major windfall for large institutions and investors.  Banks enjoyed a continuous stream of good years as rates slowly dragged down and people became serial refinancers.  Good way for banks to earn fees courtesy of the Fed’s QE maneuvering.  However the results have been negative for the large number of working and middle class Americans.  Many of you have encountered investors bidding prices up on properties here in your own backyard but this trend is nationwide.  In some areas the bidding has been more aggressive (i.e., San Francisco) but overall, the nation has seen a big jump in home values.  However new data continues to highlight how this current policy is really benefitting a small group of Americans.  While rental vacancy rates reach decade lows, homeownership rates are also reaching multi-decade lows.  Not hard to do when a large portion of the market is coming from the investor crowd.”

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Today’s Real Estate News 10.29.2013

Summary:

Today, DS News reports about how much real estate us investors have purchased since 2011. Realtytrac shares the opinions on leading brokers regarding the QRM proposal and how the foreclosure rate has been increasing in New York City and Long Island since Hurricane Sandy. According to CNN  Money, home prices are still increasing. Realtor.org shows their approval in delaying flood insurance increases. The MBAA’s president & CEO stresses a housing policy balance.  According to the Housing Wire, Hensarling is pointing the finger at Dodd-Frank for the mortgage market’s “volatility,” the Special Inspector General for TARP outlines the failures of the “Hardest Hit Fund,” the underdogs of mortgage servicing are forecasted to rule the mortgage market according to mortgage servicing experts, mortgage originations are most likely to decrease and the FHFA states that mortgage rates are to continue to climb. Bloomberg reports that consumer confidence has decreased the most since August 2011 and BofA could be forced to pay somewhere between $5-8 BILLION to settle federal claims while it’s Countrywide unit and investors in mortgage-backed securities are expected to ask a federal judge to overrule FDIC’s objections and settle for $500 Million.

Investors’ Home Purchases Total $1 Trillion Since 2011
“Since 2011, investors have purchased more than 950,000 homes; and with 370,000 purchases so far this year, they have already surpassed the number of purchases they made in either of the past two years, according to a new report from RealtyTrac.”

Leading Brokers Weigh in on Impact of New QRM Proposal, Reveling Concerns Over Mortgage Rules Taking Effect in 2014
“RealtyTrac® (www.realtytrac.com), the leading online marketplace for comprehensive housing and real estate data, today released opinions from five leading real estate brokers across the country on the impact to the real estate market and mortgage industry posed by the newly proposed Qualified Residential Mortgage (QRM) rules set to take effect in January as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in 2010.”

New York City and Long Island Foreclosures Continue to Increase a Year After Hurricane Sandy Hit
“One year after Hurricane Sandy made landfall on the U.S. eastern seaboard, RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today reported that foreclosure activity in the first nine months of 2013 is up 33 percent compared to the first nine months of 2012 in the 7-county region including the five boroughs of New York and Long Island.”

Home prices continue to climb
“Home prices posted the largest annual gain since housing bubble days in August, although the month-over-month gain slowed for the fourth straight month.”

Realtors® Applaud Bipartisan Legislation to Delay Flood Insurance Rate Increases
“The following is a statement by National Association of Realtors® President Gary Thomas:

“The bipartisan ‘Homeowner Flood Insurance Affordability Act’ introduced today in the Senate by Sens. Robert Mendendez, D-N.J.; Johnny Isakson, R-Ga.; and Mary Landrieu, D-La., and in the House by Reps. Michael Grimm, R-N.Y., and Maxine Waters, D-Calif., will help millions of homeowners who are facing sudden and extreme increases in flood insurance premiums, which are an unintended consequence of legislation to reform the National Flood Insurance Program.”

Stevens Calls for a Constructive Balance in Housing Policy
“Washington, DC (October 28, 2013) — David H. Stevens, President & CEO of the Mortgage Bankers Association (MBA) today delivered the following remarks at the association’s 100th Annual Convention and Expo in Washington, DC.”

Hensarling blames Dodd-Frank for mortgage market volatility
“Rep. Jeb Hensarling, R-TX, received thousands of cheers from attendees during the Mortgage Banker’s Association 100th Annual Convention and Expo Tuesday as he painted the Dodd-Frank Act as the real threat to mortgage finance reform.”

SIGTARP details Hardest Hit Fund failures
“The Hardest Hit Fund, which was launched by the Treasury to help families in areas stricken by the housing bust, fell short of its stated goals, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) warns.”

Smaller competitors may dominate servicing in the near future
“Mortgage servicing experts foresee a future market dominated by specialists such as Ocwen Financial (OCN) and Nationstar Mortgage Holdings (NSM), while big, traditional banks head for the hills when it comes to servicing to escape litigation and costs.”

Mortgage originations expected to fall 32% in 2014
“Mortgage originations are estimated to reach a total value of $1.2 trillion in 2014, a 32% drop from 2013 levels, the Mortgage Bankers Association said Tuesday.”

FHFA: Mortgage rates continue to climb
“Mortgage interest rates continued their upward climb, with contract mortgage interest rates increasing 0.11% from August to September, according to the Federal Housing Finance Agency’s index of new mortgage contracts.”

Consumer Confidence in U.S. Slumps by Most Since August 2011
“Confidence among U.S. consumers declined in October by the most since August 2011 as the budget impasse and debt-ceiling negotiations in Washington took a toll on outlooks.”

BofA Accord With FHFA Could Cost $8 Billion, Fitch Says
“Bank of America Corp., the second-biggest U.S. lender, may have to pay $5 billion to $8 billion to settle federal claims tied to faulty mortgages after a rival lender’s deal set “a relatively high bar,” Fitch Ratings said.”

Countrywide, Investors Seek Approval of $500 Million Pact
“Bank of America Corp.’s Countrywide unit and investors in its devalued residential mortgage-backed securities will ask a federal judge to overrule objections from the Federal Deposit Insurance Corp. and approve a $500 million class-action settlement.”