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Real Estate News 1.3.2014

Job search: One year and counting…
“Lena Rouse has merely one resolution for 2014: Finally get a job.”

The smart home is a pipe dream
“At next week’s Consumer Electronics Show in Las Vegas, the tech industry will try to convince us that our homes will be completely automated in the next five years. Don’t believe the hype.”

Sell your home without a real estate agent
“How do I sell my home without using a real estate agent? — Bill, Chicago”

Luxury sales drive Manhattan home prices higher
“New York’s new mayor is vowing to shrink the divide between the wealthy and everyone else. But when it comes to the real estate market, he is facing an uphill battle.”

Fannie Mae, Freddie Mac got $7.9 billion in bank settlements in 2013
“WASHINGTON —  Fannie Mae and Freddie Mac collected $7.9 billion from large financial institutions to settle suits over bad mortgage-backed securities purchased by the seized housing finance giants during the subprime housing boom, their federal regulator said.”

Fannie Mae, Freddie Mac may be too profitable to shut down
“WASHINGTON — Federal officials swooped in to rescue mortgage finance giants Fannie Mae and Freddie Mac in 2008 with the largest of all the financial crisis bailouts — a combined $187.5 billion — because they were considered too big to fail.”

Morningstar Executive Gives Assessment of New CFPB Rules
““Under the new CFPB [Consumer Financial Protection Bureau] rules, servicers will have to provide very detailed and accurate information to borrowers about each aspect of their loans and/or any foreclosure procedures that may occur,” according to Richard Koch, SVP at Morningstar Credit Ratings.”

Industry Completes 50K Loan Modifications for Homeowners in October
“The HOPE NOW Alliance recently announced that an estimated 50,000 homeowners received permanent, affordable loan modifications from mortgage servicers during October 2013. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP).”

Alternate Home Price Index Records Weaker Gains
“While the S&P Case-Shiller Home Price Indices for October showed a significant 13.6 percent year-over-year leap, other measures saw more subdued gains for the month.”

Average private RE investment vehicle reaches $511M
“The average size of private real estate investment vehicles that closed in 2013 hit $511 million — the highest level recorded by Preqin since the start of its data analysis.”

Residential construction spending hits 2008 levels
“Construction spending on private, residential projects reached a seasonally adjusted annual rate of $346 billion in November, up 17% over November 2012. That’s the fastest pace since mid-2008.”

Lenders search for plan B
“Lenders and borrowers are looking to other avenues of borrowing as mortgage rates continue to rise and competition heightens among financial institutions.”

2014 housing forecasts filled with euphoria: Estimates looking at higher rates combined with higher prices and stagnant incomes.
“Euphoria unlike housing inventory is in plenty supply when it comes to 2014 real estate forecasts.  The glue holding the housing market comes from investors and generous banking policy.  The one thing about economics unlike other hard sciences is that it happens in real-time.  It also assumes certain rules are fixed but that really act more like clay to fit the whims of the power structure.  It was interesting to see how few analysts at the end of 2012 predicted the massive run-up in real estate prices during 2013.  What is typical of course is that analysts usually go with the momentum so it is no surprise that predictions for 2014 are rosier than they were for 2013 even though most are forecasting higher interest rates and most will acknowledge that this current pace is unsustainable.  Yet higher rates will add pressure on income constrained households.  Investors are already showing signs of pulling back in certain markets.  Let us examine the 2014 real estate forecasting landscape.”

3 ways Dodd Frank law will roil real estate in 2014
“Chris Dodd and Barney Frank have long since retired, but the namesake legislation they craftedfour  years ago is about to unleash sweeping changes in the mortgage and real estate markets.”

Can Selling Real Estate Make You Rich?
“When Roman Serra, a 29-year-old with a master’s degree in art, decided to switch careers, he enrolled in a two-week real-estate course. He took a personality test online and went through a short interview at Chicago real-estate firm Baird & Warner, where he took the class. If he passes his broker’s license examination in January, he is guaranteed a spot as an independent contractor and a desk at one of the company’s 22 offices. He says studying wasn’t difficult compared with his days in college. “I wouldn’t personally consider it intense,” he says.”

AZ real estate player, reality TV star in trouble for operating without license
“PHOENIX (CBS5) – A reality TV star made a name for himself bidding on foreclosed homes. Now he’s underwater, accused of operating without a license.”

Three Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure Auctions
“WASHINGTON—Three Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.”

Real Estate in 2014: A Need-to-Know Guide
“After year of struggles, the housing market roared back to life in 2013. The rebound will continue in 2014, but the pace will slow.”

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Real Estate News 12.30.2013

Minimum wage to rise in 13 states on Jan. 1
“Starting January 1, minimum wage workers in 13 states and four cities will see higher paychecks.”

U.S. housing markets to watch in 2014
“Texas and California led recovery of the market in 2013. What are the next hot spots to watch for? Here are five cities to keep an eye on.”

5 biggest housing comebacks of 2013
“Six years later, the U.S. housing crash has grown more distant as the market continues to recover from record foreclosures and spiraling home prices. Here are five regions that experienced the most pronounced recoveries in 2013.”

Many Americans feel economy isn’t improving
“Despite a recent string of positive economic news, Americans say they aren’t feeling the improvements.”

Unemployment benefits for 1.3 million expire
“Michelle Marshall is one of the 1.3 million long-term unemployed Americans who is losing her jobless benefits.”

Pending Home Sales Edge Up in November
“WASHINGTON (December 30, 2013) – Pending home sales stabilized in November with a slight gain, according to the National Association of Realtors®. Monthly increases in the South and West offset declines in the Northeast and Midwest.”

Is Mortgage Market Deconsolidation Temporary or Here to Stay?
“In 1998, the top 10 mortgage lenders held around 40 percent of the market. By 2010, their share increased to nearly 80 percent; since then, it’s dropped down to around 60 percent.”

Even in Buyer’s Market, Homeownership Expected to Decline
“Zillow expects conditions next year to be a bit friendlier to homebuyers—but that doesn’t mean we’ll necessarily see more owner-occupied housing, experts at the real estate marketplace say.”

2013 in Review: The Consumer Financial Protection Bureau
“Mortgage industry commentators may argue (and they certainly have) about the Consumer Financial Protection Bureau’s (CFPB) performance over the last year, but one thing is certain: The bureau knows how to command headlines.”

Trulia Economist Sees 2014 as ‘Year of the Repeat Homebuyer’
“As prices continue rising in the new year—albeit at a slower pace—investors will begin to ease back from the purchase market, but repeat homebuyers will be there to pick up the slack, according to Trulia’s predictions for the housing market in 2014.”

Feature: New World Order
“The veterans of this business can remember when market conditions were “normal”—when REOs ran in the neighborhood of 150,000 a year, delinquency rates were just around 4 percent, and you only needed a credit score of 620 to qualify for a prime mortgage loan.”

Commentary: What’s in Store for Housing in 2014, Part 1
“Many economists and market observers have suggested the market is poised for continued growth as the recovery enters its third year, and there are positive elements in play that provide some reasons for optimism.”

Jobs, Population Growth, Low Prices Create Investment Opportunities
“Analysts at HomeVestors and Local Market Monitor say the formula for a nearly risk-free single-family investment opportunity is one part job growth, particularly in lower paying jobs, and one part population growth, mixed with relatively low home prices.”
The next article is from Christmas eve but I thought you may want to see it.

20 Cities with Biggest Foreclosure Discounts
“As the housing market continues to recover in 2014, finding a foreclosure deal is more important than ever to ensure you get the most bang for your buck and land a home with built-in equity. RealtyTrac has identified the top 20 U.S. cities with the deepest discounts still available on foreclosure homes, including several markets on both coasts, from the high end to the low end, and plenty in-between.”

Fannie Mae Reaches $591 Million Repurchase Agreement with Wells Fargo
“WASHINGTON, DC – Fannie Mae (FNMA/OTC) has reached a $591 million agreement with Wells Fargo to resolve repurchase requests on certain loans originated prior to 2009.  After adjustments for prior repurchases, Wells Fargo will pay Fannie Mae $541 million in the fourth quarter of 2013 and be released from repurchase liability for these loans, with certain exceptions. “

Fannie, Freddie give non-investor home buyers ‘first look’ period
“WASHINGTON — An important resource for first-time home buyers and others who find themselves in unfair competition with deep-pocket investors bearing cash just got better: The two biggest players in the mortgage market, Fannie Mae and Freddie Mac, are now giving non-investor shoppers 20-day exclusive rights to bid on and buy new listings they are selling.”

Nov. home sales fall to a 5-year low in Vegas
“The Las Vegas market turned into the comeback kid after investors flooded the city in the wake of the real estate bust.”

LPS: Home price increases slowed in October
“October proved to be a tepid month for home prices, with no state increasing more than a full percentage point, according to Lender Processing Services’ most recent U.S. Home Price Index report.”

Flagstar Bancorp reaches $10.8 million repurchase settlement
“Flagstar Bancorp (FBC), the holding company for Flagstar Bank, has entered into an agreement with Freddie Mac to resolve substantially all of the repurchase requests and obligations associated with loans originated between Jan. 1, 2000, and Dec. 31, 2008, reaching a total amount of $10.8 million, the company announced in a press release.”

New home sales and mortgage apps see growing divergence
“The November new home sales data from the U.S. Census Bureau includes “some surprisingly positive data points, and a continued divergence from the weekly purchasing applications trend as released by the MBA,” according to research from Compass Point Research & Trading.”

U.S. Stocks Little Changed as Home Sales Miss Estimates
“U.S. stocks were little changed, as the Standard & Poor’s 500 Index headed toward its biggest annual gain since 1997, after data showed contracts to purchase previously owned U.S. homes rose less than forecast in November.”

YEAR IN REVIEW: Stabilizer sums business scene in 2013
“One word: Stabilizer.
With its twists and turns, moments of trepidation, transition and glory, 2013 was a year Inland Southern California’s retail giants, small business, manufacturing companies, banks and real estate industry gained surer footing.”

Where did all the single family homes go? Half of foreclosed homes still occupied and big investors not reselling properties. Investors purchase $1 trillion in real estate since 2011.
“The real estate market has slim pickings for traditional buyers.  Funny thing that we have to use the “traditional” preface since the market is overrun with a hoard of investors.  I am seeing this with my own two eyes.  You are seeing it as well.  In most ordinary cases a rise in prices would be accompanied with some sort of rise in supply.  Yet this is no ordinary situation.  Scouring over a few reports I found that nearly half of foreclosed homes are still occupied.  In places like California and Miami this number is closer to 60 percent.  When these homes finally get fully repossessed, they are likely going to big money investors that end up holding on to the property, removing it completely from the market.  There is little doubt that investors are a big part of the market.  Since 2011 they have purchased over $1 trillion in real estate.  With razor thin inventory, this is a big deal.”

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Today’s Real Estate News 11.5.2013

Banks offering mortgages with only 5% down payments
“Good news for homebuyers who don’t have a lot of cash on hand: Banks are offering loans with down payments of just 5%.”

Why the jobs picture is brighter than you think
“FORTUNE — As the U.S. unemployment rate falls, skepticism grows about any real improvements in the job market.”

Bahrain’s Investcorp buys $250 mln worth of U.S. real estate assets
“Nov 5 (Reuters) – Bahrain-based Investcorp said on Tuesday that it has acquired a group of offices and retail properties in the United States for $250 million.”

UPDATE 1-U.S. homeownership rate holds near 18-year lows
“Nov 5 (Reuters) – Homeownership in the United States held near 18-year lows in the third quarter, suggesting the housing market was still struggling to overcome challenges brought on by the recession.”

Deals of the day- Mergers and acquisitions
“Nov 5 (Reuters) – The following bids, mergers, acquisitions and disposals were reported by 1100 GMT on Tuesday.”

Eminent Domain Battle Shifts to Another California City
“Sorohan, Mike–Nov. 5, 2013
Popping up like a Hydra, the latest battle over use of eminent domain to seize underwater mortgages has shifted to Pomona, Calif., a city of 150,000 residents outside Los Angeles.”

Few Banks Easing Mortgage Standards in Response to Higher Rates, Fed Says
“Most U.S. banks have maintained their existing lending standards on residential loans in recent months despite rising interest rates and softer demand for mortgages, a Federal Reserve survey found.”

Mortgage originations could fall 32 percent next year
“Mortgage originations in the U.S. could fall 32 percent next year from 2013 levels, according to the Mortgage Bankers Association.”

How Bank-Defeated ‘Plain-Vanilla’ Requirements Live On
“Before there was much talk about “qualified mortgages,” “living wills” and the “Volcker Rule,” the two words that perhaps scared bankers the most were ‘plain vanilla.'”

Fed in no rush to cut bond buys, top policymakers say
“(Reuters) – The Federal Reserve should scale back its asset purchases only when the U.S. economy shows clearer signs of improvement and even then it should act slowly, one senior central banker said on Monday, while two others stressed there is no need to rush.”

Morgan Stanley Says AIG May Sue Over Mortgage-Linked Investments
“Morgan Stanley (MS), the sixth-largest U.S. bank by assets, said it may be sued by American International Group Inc. (AIG) over mortgage-backed securities that the insurer purchased before the financial crisis.”

National vacancy rate edges up 8.3% in 3Q
“National vacancy rates in the third quarter 2013 hit 8.3% for rental housing and 1.9% for homeowner housing, the Department of Commerce’s Census Bureau announced.”

Ally’s Net Income Declines 76% as Mortgage Costs Linger
“Ally Financial Inc. (ALLY), 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.”

Will We Face A Mortgage Shortage In 2014?
“People assume that mortgages will always be available but what if that’s wrong? Could  there be a mortgage shortage in the near future, a time when financing shelves  are bare?”

Pennsylvania Housing Affordable
“Editor’s Note: In the October 2013 issue of the Foreclosure News Report, we asked Brian A. Hudson, the Executive Director and CEO of the Pennsylvania Housing Finance  Agency, to pen a “My Take” column and bring us up to speed on what the state is  doing to foster affordable housing. Here’s a short excerpt from Hudson’s  column.”

Analysts Say Double-Digit Appreciation Will Come to an End by 2014
“National home prices were up 10.1 percent year-over-year in the second quarter, but price appreciation is expected to fall out of the double-digits, reaching 5.4 percent by the beginning of next year, according to the CoreLogic Case-Shiller Home Price Indexes.”

Despite Bankruptcy, Detroit’s Housing Market Thrives
“The city that previously made national headlines for its failing economy and bankruptcy filing is now in the spotlight for its rapidly rebounding housing market. Detroit topped two lists of highest-performing housing markets in the past week—one from Realtor.com and one from Clear Capital.”

Activity from Homebuyers Picks Up in Aftermath of Shutdown
“Homebuyers shook off their fears and returned to the market in force following the re-opening of the government in October, according to data presented by Redfin’s Research Center.”

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Today’s Real Estate News 11.4.2013

Free FICO credit scores coming to millions

“FICO scores are used by nearly every major lender to assess the creditworthiness of credit card and loan applicants. But these scores are mostly invisible to consumers, unless you go to FICO’s website and sign up for a subscription of $14.95 per month — a service you need to cancel within 10 days if you don’t want to be charged anything.”

Home Buyers and Sellers Survey Shows Lingering Impact of Tight Credit

“Although the housing market has shown a healthy recovery over the past two years, unnecessarily restrictive mortgage lending standards are preventing some financially qualified buyers from reaching their dreams, especially singles and first-time buyers, according to an annual study released today.”

Realtors® Report Americans Prefer to Live in Mixed-Use, Walkable Communities

“WASHINGTON (November 1, 2013) – Choosing a community is one of the most important factors for consumers as they consider a buying home, and research by the National Association of Realtors® has consistently revealed that Americans prefer walkable, mixed-use neighborhoods and shorter commutes. According to NAR’s 2013 Community Preference Survey, 60 percent of respondents favor a neighborhood with a mix of houses and stores and other businesses that are easy to walk to, rather than neighborhoods that require more driving between home, work and recreation.”

U.S. to put SAC hedge fund out of business over insider trading

“(Reuters) – Billionaire investor Steven A. Cohen’s days as a hedge fund manager may be finished with an agreement by his SAC Capital Advisors to plead guilty to criminal charges of insider trading and pay a record $1.8 billion in fines and forfeitures.”

Is the ‘End of the Suburbs’ Near?

“In her new book, “The End of the Suburbs: Where the American Dream is Moving,” Leigh Gallagher, an editor at Fortune magazine, argues that powerful economic, social and demographic forces are converging to render suburban living unsustainable.”

International Architects and Designers in New York

“New York City has long been a promised land for architects and designers from all over the world. What better stage on which to showcase a groundbreaking design than NYC’s hallowed skyline? The trend of international creatives contributing to New York’s unique aesthetic has been booming of late.”

Report: New Wave of Delinquencies from ARM Resets Unlikely

“Concerns of a new wave of problem loans caused by unsustainable rate resets on adjustable-rate mortgages (ARMs) are largely unfounded, according to Lender Processing Services (LPS).”

What Does Fannie Mae’s New LTV Threshold Accomplish?

“As of November 1, Fannie Mae is no longer purchasing loans without minimum down payments of at least 5 percent. Industry experts with the Urban Institute’s Housing Finance Policy Center argue this move is arbitrary and likely to provide little benefit to the GSE or to taxpayers.”

Georgia Real Estate Investor Nabbed for Fraud

“A Georgia real estate investor and his company pled guilty last week for conspiring to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.”

Half of Consumers Fear Another Housing Bubble Is Forming

“While many indicators suggest the housing market is on the road to recovery, some fear another bubble is already forming. Country Financial, a financial services company based in Bloomington, Illinois, found in a recent survey that 48 percent of Americans say the market could reach “bubble” status within the next two years.”

Maxine Waters places housing reform on chopping block

“After several critical years in the wake of the housing meltdown, the market recovery is continue to take shape.”

Two Harbors enters flow sales agreement for MSR portfolio

“Real estate investment trust Two Harbors Investment Corp.’s (TWO) wholly owned subsidiary, Matrix Financial Services Corporation, announced it entered into an agreement with PHH Mortgage Corporation for the purchase and sale of mortgage servicing rights.”

FHA policy transparency fuels Ginnie Mae modernization

“The ongoing push by the Federal Housing Administration toward additional transparency and data disclosure took another positive step toward the modernization of Ginnie Mae.”

Monday Morning Cup of Coffee: ING Alt-A liquidation will relieve lack of supply

“Monday Morning Cup of Coffee is a look at news across the HousingWire news desk with larger coverage to come on bigger issues.”

Single-family rental securitization market boasts near trillion-dollar potential

“The REO-to-rental securitization deal that Blackstone (BX) subsidiary Invitation Homes brought to market is just the tip of the iceberg, with KBW analysts forecasting a nearly trillion dollar market when calculating the lingering possibilities that exist for single-family rental securitization deals.”

Las Vegas September home sales buoyed by move-up buyers

“Despite the Las Vegas area posting a slowdown in sales last month when compared to August, overall activity was still slightly higher when compared to year ago levels, as relatively strong move-up buyers buoyed sales, the most recent DataQuick report reveals.”

Future secondary market remains a challenge

“Government authorities are examining the secondary mortgage market to determine all the elements needed to make it run successfully.”

Bank of America wins dismissal of lawsuit on AIG disclosures

“(Reuters) – Bank of America Corp has won the dismissal of an unusual lawsuit in which shareholders accused it of concealing a $10 billion fraud case brought by American International Group Inc.”

Bank of America could face $6.8 billion fine if it settles FHFA case on J.P. Morgan’s terms

“It’s been a few days since a big bank announced a multi-billion-dollar settlement over dubious mortgage practices. But don’t get comfortable: This saga will keep churning for a long time.”

Dutch Gamble on U.S. Housing Debt After Patience Wins

“The Dutch government’s decision to hold onto U.S. mortgage debt acquired during the 2009 bailout of ING Groep NV has paid off so far as prices of the securities soared, more than doubling in some cases from lows that year.”

Financial firms cutting thousands of jobs

“Financial firms are cutting tens of thousands of jobs because of a slowdown in the mortgage business, the sluggish economy, the growth of online banking and new regulations.”

If It Looks Like a Bank, Regulate It Like a Bank

“Five years after a crisis that almost took down the world economy, regulators are still groping for a way to address one of the global financial system’s most obvious weaknesses: the trillions of dollars in banking activity that happens outside traditional banks.”

Dallas Fed’s Fisher Doesn’t Rule Out Backing Taper by March

“Federal Reserve Bank of Dallas President Richard Fisher, who has criticized the central bank’s bond buying program, said he wouldn’t rule out backing a tapering of purchases by March depending on economic conditions.”

Is the housing boom running out of gas? Pending home sales face largest monthly drop since home buying-tax credit expired in 2010. Median price nationwide drops.

“There are now signs that the unrelenting housing price boom is slowing down. Pending home sales faced their largest monthly drop since the home-buyer tax credit expired back in 2010. If you notice a pattern, any time the government even remotely hints at pulling back the housing market suddenly reverses. The Fed’s hint of a taper ending sent mortgage rates soaring. Of course the taper never materialized and the Fed even became more aggressive in QE. The government shutdown did impact housing from data we are seeing. Existing homes sales pulled out a weak performance and the drop in pending sales, a leading indicator are showing signs of a slowing housing market. In this boom and bust market with no middle ground, are we now to expect a “normal” healthy market after this recent boom?”

HUD ANNOUNCES SETTLEMENT WITH BANK OF AMERICA RESOLVING ALLEGATIONS OF LENDING DISCRIMINATION AGAINST WOMEN ON MATERNITY LEAVE

“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced today that Bank of America will pay $45,000 as part of Conciliation Agreements resolving allegations the lender discriminated against pregnant women seeking mortgage loans. HUD had alleged that the Bank of America refused to refinance the mortgages of two couples in California and Texas, because the women were on maternity leave.”

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Today’s Real Estate News 10.28.2013

Summary:

CNN Money shares six items that home insurers don’t cover. The Wall Street Journal visits the real estate hurdles of the super storm, Sandy, aftermath in Jersey Shore and explores ways a qualified borrow can still get approved for a mortgage. Fortune reports that the tax credit offering companies a tax credit for hiring vets is expiring this year and claims that the big banks are “too big to fail” citing a relationship between Washington and the banks. Realtor.org explores the changes in technology within the past ten years. Also according to Realtor.org, Pending and Existing Home Sales are continuing to drop. According to Reuters, the economy is losing its’ momentum based on factory and housing data. Reuters reports that investors are waiting for housing reform, HUD and MBA leaders agree that there are many more “critical milestones” that must be achieved and Congresswoman Maxine Waters calls for a plan to mend the National Flood Insurance Program. Bloomberg reports that according to mortgage-bond pioneer, Lewis Ranieri, the new tight lending laws may cause more issues than the housing burst. According to Forbes, despite some of the poor media views of the real estate market, trends point to a “bright future.” Dr. Housing Bubble reports that many American think they will work until their deaths and homes are their only assets.

6 things home insurance won’t cover
“Your insurer won’t take care of everything life throws at you and your house. If one of these happens to you, you’re probably on your own.”

Sandy’s Legacy: Higher Home Prices
“ORTLEY BEACH, N.J.— John Anello had visited the Jersey Shore since he was a small child and always wanted a beach home there.”

Six Ways to Ensure Qualified Borrowers Can Get Mortgages
“A new paper raises concerns that mortgage lending standards — after becoming dangerously lax during the housing bubble — could now lock out qualified entry-level homeowners, leading policymakers and industry officials to learn the wrong lessons from the housing bust.”

Veterans may face yet another employment hurdle
“A tax credit that offers companies incentive to hire veterans is set to expire at the end of the year, potentially putting a damper on a growing — and fragile — segment of the American working population.”

New bank meme: Too connected to fail
“FORTUNE — Move over “too big.” There’s a new knock on the mega banks: ‘Too connected to fail.'”

Then and Now: A Decade of Technology in Real Estate
“More buyers than ever are taking advantage of the latest technology and online tools to search for a place to call home. As a result, Realtors® are leveraging new technologies to better assist their more tech savvy clients. A 10-year history of the National Association of Realtors® annual Member Profile shows Realtors®’ evolving use of technology, the Internet and social media and the essential role that technology plays in the real estate transaction.”

Pending Home Sales Continue Slide in September
“WASHINGTON (October 28, 2013) – Pending home sales declined for the fourth consecutive month in September, as higher mortgage interest rates and higher home prices curbed buying power, according to the National Association of Realtors®.”

Existing-Home Sales Down in September but Prices Rise
“After hitting the highest level in nearly four years, existing-home sales declined in September, but limited inventory conditions continued to pressure home prices in much of the country, according to the National Association of Realtors®.”

U.S. factory, housing data suggest economy losing steam
“(Reuters) – U.S. manufacturing output barely rose in September and contracts to buy previously owned homes recorded their largest drop in nearly 3-1/2 years, the latest signs the economy’s momentum ebbed as the third quarter ended.”

Investors sit on the sidelines waiting for housing reform
“Regulators and mortgage industry professionals spent part of the day Monday discussing the future mortgage finance market at the 100th Annual MBA Convention & Expo.”

HUD, MBA leaders say it’s time to fight an overcorrection in mortgage lending
“Policymakers and mortgage industry leaders took to the podium Monday, highlighting the significant progress the mortgage industry has made over the past century, but also pointing out some of the critical milestones that still need to be reached.”

Rep. Maxine Waters rolls out aggressive national flood insurance repair program
“Congresswoman Maxine Waters, D-Calif., introduced an aggressive bipartisan plan to fix the National Flood Insurance Program this past week.”

Ranieri Says Tight Mortgage Lending May Be Worse Than Crisis
“The U.S. mortgage market has experienced an “irrational restriction” of credit as lenders and regulators overreact to the loose lending during the bubble that burst in 2007, mortgage-bond pioneer Lewis Ranieri said.”

Forget Affordability — Housing’s Trends Signal A Bright Future
“It seems that whenever something happens in the housing market, a flock of articles pop up explaining why the signs are ominous and housing is destined to flounder. To me, the oddest one has to do with existing home sales this year. Prices have risen, and the inventory of homes for sale has fallen. This happy concurrence has been met with tsk-tsking that both changes will harm the recovery.”

The house broken American: Many Americans believe they will work until they die and the only asset many have is their home.
“Americans for the most part are bad at saving money. In fact, the entire credit boom and bust was largely fueled by people and banks living way beyond their means. Even after the recent boom in the stock market and housing market, many Americans are not in a better financial position. The problem with housing is that this is like having golden handcuffs. You will likely only unlock the wealth when you sell it. As we have discussed many are simply reluctant to sell. So in essence, the wealth is locked away. To sell a home also costs money and real estate for the most part is illiquid. And since the recession ended a large portion of home purchases have gone to investors. Never in the history of the US have we seen so many large institutions dive into the housing market in aspiration of being a landlord. Recent surveys show that many Americans plan on working until they end up in their grave. But what about the boom in housing? Unfortunately many are locked in a granite countertop laden sarcophagus.”

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Today’s Real Estate News 10.25.2013

Summary:

Today, MSN Money forecasts a “major” rent hike. Fortune explains that employers are to be blamed for American workers lack of skills in today’s workplace. The Mortgage Bankers Association sent a letter to federal regulators which “urged federal regulators to adopt a proposal that aligns their proposed definition of a Qualified Residential Mortgage with the Consumer Financial Protection Bureau’s definition of a Qualified Mortgage/Ability to Repay.” According to BusinessWeek, U.S. lawmakers & regulators are questioning whether or not to lower the “size of mortgages” guaranteed by the government and Citigroup is selling its’ mortgage servicing rights. Chicago Tribune reports this week’s mortgage rates. Consumer sentiment in the nation has fallen, says CNBC. The Housing Wire reports that the FHA Commissioner is urging the government to act as a “backstop” to private capital and Fidelity Financial has altered its’ terms for its’ Lender Processing Services acquisition. According to Reuters, JPMorgan, Deutsche Bank & Creidt Suisse are going to be marketing Blackstone’s home-rental bond for the first time, EVER. Bloomberg reports that the slowdown in exporting will hurt the world’s economy. Press Enterprise shares that home equity to regaining its’ ground in the Inland Empire and that loans are growing for CVB Financial Corp., Citizens Business Bank’s holding company. According to Forbes, China claims $2.31 TRILLION in new home loans from September 2012 – September 2013. UT San Diego reports that San Diego ranks 2nd on the least affordable housing market list.

Get ready for a major rent hike

“The price of renting is rising and competition is growing for apartments, condos and houses. Rents rose 7.6% nationally in the last five years, The Wall Street Journal says. In some cities they’re up 10%.”

American workers are way behind: Blame U.S. employers

“FORTUNE — To listen to some companies, American workers fall glaringly short of sophisticated computer and other necessary skills in today’s workplace.”

MBA Letter Urges QRM, QM Alignment

“The Mortgage Bankers Association strongly urged federal regulators to adopt a proposal that aligns their proposed definition of a Qualified Residential Mortgage with the Consumer Financial Protection Bureau’s definition of a Qualified Mortgage/Ability to Repay.”

Regulators Weigh Reductions in Size of U.S.-Guaranteed Mortgages

“Lawmakers and regulators are debating whether it’s time to shrink the size of mortgages that the U.S government will guarantee, five years after they first boosted loan limits in response to the financial crisis.”

Citigroup Selling Mortgage Servicing Rights as Banks Retreat

“The U.S. mortgage market’s largest lenders are pulling back amid looming regulations and a drop in refinancing that fueled record profits last year.”

Mortgage rates dip to 4-month low

“Mortgage rates hit their lowest levels in four months this week, Freddie Mac said Thursday, as speculation grew that the Federal Reserve will continue its bond-buying stimulus plan through the end of the year.”

Consumer sentiment slides in October on government shutdown

“U.S. consumer sentiment dropped in October to its lowest level since the end of last year as consumers worried Congressional dysfunction and the resulting partial federal government shutdown would hurt growth, a survey released on Friday showed.”

FHA Commissioner: Government should act as backstop to private capital

“Housing finance reform needs to be the government’s top priority as Washington D.C., goes back to work in the wake of the government shutdown, FHA Commissioner Carol Galante said Thursday.”

Fidelity National Financial adjusts terms of LPS acquisition

“Residential mortgage services provider Fidelity National Financial Inc. (FNF) has adjusted the terms of its planned acquisition of Lender Processing Services (LPS).”

Banks set to roadshow Blackstone home-rental bond

“NEW YORK, Oct 24 (IFR) – Deutsche Bank, Credit Suisse and JP Morgan will begin marketing the first-ever bond backed by US home-rental cashflows, a US$500 million trade for private-equity giant Blackstone, next Wednesday.”

Export Slowdown Threatens World Economy

“When HSBC Holdings Plc’s economists from around the world recently pooled their forecasts, virtually all had a similar source of growth in mind for the region they monitored: exports.”

REAL ESTATE: Equity regaining lost ground in Inland marketplace

“Price appreciation in 2013 has thrown life preservers around more homes in Riverside and San Bernardino counties; fewer homeowners struggling to regain lost ground”

BANKING: CVB Financial net earnings, loans grow

“CVB Financial Corp., the holding company for Citizens Business Bank, has announced net income of $24.2 million for the third quarter, or 23 cents per diluted share.”

China Real Estate Lending Tops $2.3 Trillion

“China’s home lending is larger than the entire economy of India. The housing boom there has no bounds, growing 19% year-over-year in September to a total of $2.31 trillion in new home loans, according the Central Bank of China. That’s nearly 25% China’s GDP and more than India’s $1.8 trillion GDP recorded in 2012. It might look like a lot of money, but considering China’s 1.35 billion population, the total housing debt is around $1,700 per person, or 27% of average per capita income.”

SD 2nd least affordable housing market

“San Diego County ranks as the second least affordable housing market, according to a 25-city survey by Income.com.”

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Today’s Real Estate News 10.24.2013

Summary:
In today’s news, CNN Money shares about “impact investing,” and how 50% of the country’s foreclosed homes are still being occupied. Reuters reports that jobless claims remain high yet manufacturing is slowing. According to Market Watch, BofA is slashing 3,000 mortgage jobs. CNBC states that 9 banks are being probed on mortgage-backed securities and Fed easing’s effect on mortgage rates. Mortgage apps fall less than a whole percentage according to the UPI. Housing Wire reports that the fed “proposes minimum liquidity requirements” for the big banks. Bloomberg is full of news today sharing that Bank of America’s Countrywide is being held liable for selling thousands of defective loans to Fannie Mae & Freddie Mac, the city of Vallejo is set to sell water-bonds for the 1st time since before it’s 2008 bankruptcy filing, all-cash buyers make up nearly 50% of all home sales and Warren Buffett says that while the housing market has made some headway, it still has a way to go. Dr. Housing Bubble shares the story of how it’s possible that a 932 square foot home can be priced at $895,000.  

Can you make money and feel good about it?
“Want to make money while helping the people around you? Impact investing may have the answer.”

Half of nation’s foreclosed homes still occupied
“Foreclosure sounds like the end of the line, but actual eviction can take months or years — even after the bank has repossessed a home.”

U.S. jobless claims stay elevated, manufacturing slows
“(Reuters) – The number of Americans filing new claims for unemployment benefits fell less than expected last week, but a lingering backlog of applications in California makes it difficult to get a good read of labor market conditions.”

Bank of America to cut 3,000 jobs in mortgage unit
“NEW YORK (MarketWatch) — Bank of America Corp. Inc. BAC -0.25% will cut approximately 3,000 mortgage jobs in the fourth-quarter as it looks to make cutbacks in its expenses, said a person familiar with the matter.”

Jury Finds Bank of America Liable in Mortgage Case
“Updated, 9:20 p.m. | Bank of America, one of the nation’s largest banks, was found liable on Wednesday of having sold defective mortgages, a jury decision that will be seen as a victory for the government in its aggressive effort to hold banks accountable for their role in the housing crisis.”

US task force probes nine banks on mortgage-backed securities
“At least nine banks face investigations by the U.S. Department of Justice into their sales of mortgage-backed securities as part of an effort by the task force that reached the $13 billion pact with JPMorgan Chase, people familiar with the matter say.”

What more Fed easing really means for mortgage rates
“Now that the Fed is expected to keep its foot on the easy money pedal for months to come, don’t expect to see interest rates go much lower.”

U.S. mortgage applications fall less than 1 percent
“WASHINGTON, Oct. 23 (UPI) — U.S. mortgage activity dropped less than 1 percent last week, the Mortgage Bankers Association said Wednesday.”

Fed proposes minimum liquidity requirements for big banks
“For the first time in its regulatory history, the Federal Reserve Board is proposing a rule that would create a standardized, minimum liquidity requirement for banks deemed systemically important.”

BofA’s Countrywide Found Liable for Defrauding Fannie Mae
“Bank of America Corp.’s Countrywide unit was found liable by a jury for selling Fannie Mae and Freddie Mac thousands of defective loans in the first mortgage-fraud case brought by the U.S. government to go to trial.”

Vallejo Water-Bond Deal to Be City’s First Since 2008 Bankruptcy
“Vallejo, the Northern California city that sought Chapter 9 bankruptcy protection in 2008, is set to sell about $19 million in water-revenue bonds next week in its first municipal-debt sale since the filing.”

Families Blocked by Investors From Buying U.S. Homes
“Home purchases by institutional buyers reached a record high in September and all-cash buyers accounted for almost half of sales as investors responded to rising demand from renters.”

Buffett Says Gains in Housing Fall Short of Equilibrium
“Warren Buffett, the billionaire chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said the U.S. housing market has made progress and still has a way to go in recovering.”

The Grand Republic of Santa Monica: 932 square feet for $895,000. How housing built before the Great Depression can fetch wild prices.
“The mania in certain California neighborhoods is so dramatic that my e-mail box is now filled on a daily basis with Real Homes of Genius.  It isn’t as high as it was in 2007 at the apex of the last bubble but I’m seeing some pretty outrageous properties being listed for pipedream prices.  Targeted markets are definitely benefitting from the investor fever.  First, many of the homes being sold are actually being sold for the land.  Given the headline cost plus construction costs this is a very tiny market segment here.  Yet the froth is very obvious in these regions.  Santa Monica is prime Westside housing.  It is hard for anyone outside of the region to understand the crazy prices in Santa Monica.  Even those in the region have a hard time understanding.  Today we’ll focus on this area and pull up a property that only an investor could love.  Welcome to the wonderful Republic of Santa Monica.”

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Today’s Real Estate News 10.23.2013

Summary:
CNN Money reports that the tax year may be delayed thanks to the government shutdown and shares why young adults aren’t quick to find jobs. According to the LA Times, Pending home sales in California fell in September while inventory rose. Reuters says that U.S. regulators don’t expect lenders to “run afoul of fair-lending laws if they opt to issue only the most basic mortgages after tough new rules take effect in 2014”  and that American Realty has reached a deal to acquire Cole Real Estate Investments for $7Billion. Market Watch shares that JPMorgan may face an additional $5.75Billion in payouts to investors. Housing Wire reports that that the timelines for distressed properties is mixing up home prices, Mortgage delinquencies are up in September and foreclosure starts in California dropped.  Forbes explains how the bad news on the economy helped the stocks.  

IRS: Tax season delayed due to shutdown
“You’ll have to wait to file your taxes to Uncle Sam this year, thanks to the government shutdown.”

Why young people are saying ‘no’ to the workforce
“A job used to be the next step after a diploma. But now, young people aren’t in any rush to start working.”

California pending home sales fell in September while inventory rose
“Buyers signed fewer contracts for California homes last month as the housing market entered a typically slower period and declining affordability sapped demand.”

U.S. regulators say no fair-lending problem with new mortgage rules
“(Reuters) – U.S. regulators on Tuesday said they do not expect lenders to run afoul of fair-lending laws if they opt to issue only the most basic mortgages after tough new rules take effect in 2014.”

American Realty clinches Cole Real Estate deal for $7 billion
“(Reuters) – American Realty Capital Properties Inc (ARCP.O) has reached a deal to buy Cole Real Estate Investments Inc (COLE.N) for about $7.2 billion in cash and stock to create the largest U.S. net-leased real estate investment trust (REIT), the companies said on Wednesday.”

J.P. Morgan faces $5.75 bln in additional payouts
“Investors are seeking at least $5.75 billion from J.P. Morgan Chase & Co. in a bid to recover losses from mortgage-backed securities sold to them before the financial crisis, said people familiar with the talks.”

Prolonged liquidation timelines shake up home prices
“Timelines on distressed inventory continue to drag on, while elevated mortgage loss severities continue to offset positive gains on home prices.”

LPS: Mortgage delinquencies edge up in September
“The performance of home loans monitored by Lender Processing Services backslid a bit in September, as the U.S. loan delinquency rate grew 4.23% from August to September, reaching a rate of 6.46%, LPS concluded.”

DataQuick: California foreclosure starts continue to drop
“The number of homeowners entering the foreclosure process in California last quarter fell to the second-lowest level in seven and a half years, a new report from analytics firm DataQuick claims.”

Why Bad News On Economy Was Good For Stocks
“Tuesday was one of those days when a perfectly intelligent member of the public would have been forgiven for scratching her head and wondering why bad economic news helped send the Standard & Poor’s 500 stock index towards an all-time high.”

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Today’s Real Estate News 10.17.13

Summary:
According to CNN Money, the government shutdown cost the U.S. economy $24 billion. Reuters states that Washington is the “biggest risk” to the nation’s economy. The LA Times reports that SoCal’s housing market is slowing, reports this week’s mortgage rates, a former BofA employee has allegedly taken $1 million in bribes to alter short sale transactions & BofA “outpaces other banks in mortgage settlement compliance.” The Housing Wire shares that the U.S. housing market took only a minor hit as a result of the government shutdown & that flippers are backing away due to a decline in real estate turnover.
CNBC reports that Ben Bernanke, Federal Reserve Chair, won’t be required to testify in AIG case yet.

Shutdown took $24 billion bite out of economy
“The United States may have dodged an economic catastrophe by raising the debt ceiling and opening the government, but it didn’t emerge from the political debacle unscathed.”

Analysis: Washington becomes the biggest risk to the U.S. economy
“(Reuters) – Consensus may be hard to find in Washington these days, but many corporate executives and economists seem to agree on one point: the biggest risk to the world’s largest economy may be its own elected representatives.”

Southern California housing market slows after torrid rebound
“Southern California home buyers have apparently had their fill of bidding wars, home shortages and double-digit price hikes.”

Freddie Mac: Mortgage rates higher amid crisis; 30-year at 4.28%
“Fixed mortgage rates rose early this week amid the debt crisis, Freddie Mac’s latest survey showed, with lenders offering the 30-year home loan at an average of 4.28%, up from 4.23% a week earlier.”

Former BofA employee accused of taking bribes to rig short sales
“A former Bank of America Corp. employee who had dealt with delinquent mortgages has been arrested on federal charges of accepting more than $1 million in bribes to allow homes to be sold far below their market value.”

BofA outpaces other banks in mortgage settlement compliance
“Bank of America Corp. moved faster than Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. in satisfying its obligations to assist troubled borrowers under last year’s $25-billion national mortgage settlement, according to the agreement’s monitor.”

Housing recovery took a minor hit during government shutdown
“While the housing forecast remains mostly unchanged, the contentious negotiations that led to Congress temporarily raising the debt ceiling may have a lingering impact on consumer confidence in the housing market.”

Home flippers back away as real estate turnover activity declines
“Home flipping activity dipped 13% from the same period a year ago, with 32,993 single-family home flips recorded in the third quarter of 2013, RealtyTrac reported Thursday.”

Bernanke won’t have to testify in AIG case—for now
“Federal Reserve Chairman Ben Bernanke does not have to testify in the multibillion-dollar lawsuit by the former chief of American International Group against the United States over the insurer’s 2008 bailout, a federal appeals court said on Wednesday.”

Jobless Claims in U.S. Fall Less Than Forecast on California
“More Americans than forecast filed applications for unemployment benefits last week as California continued to work through a backlog, indicating it will take time to gauge the impact of the federal shutdown.”