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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 2.25.14

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 2.11.14

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Real Estate News 1.28.2014

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 1.10.2014

Far fewer mortgage borrowers ‘deeply underwater’

“A growing number of mortgage borrowers are keeping their heads above water, according to a report from RealtyTrac.”

 

Mortgage Rates React to Light News Week

“This week saw conflicting reports of interest rate movements, despite markets having little news with which to react.”

 

Labor market data suggest economy strengthening

“(Reuters) – The number of Americans filing new claims for unemployment benefits last week fell and planned layoffs hit a 13-1/2 year low in December, adding to a range of data that have suggested the economy is gaining steam.”

 

Bill would boost disclosures in corporate settlements with U.S.

“WASHINGTON — Concerned that targets of federal investigations are getting off lightly, two senators proposed legislation requiring the government to disclose all the details about settlements that allow companies to duck trials on allegations of wrongdoing.”

 

JPMorgan, UBS Said to Be Among Banks in Mortgage Probe

“JPMorgan Chase & Co. (JPM) and UBS AG (UBSN) are among banks that received federal requests for information about trades in mortgage-backed securities after the financial crisis, two people briefed on the matter said.”

 

Brown Proposes Record $106.8 Billion California Budget

“California Governor Jerry Brown proposed a record $106.8 billion budget as state coffers brim with the biggest surplus in more than a decade, setting up a fight with fellow Democrats who want more spending.”

 

Home Equity Gains Spur the Economy as Owners Buy Cars: Mortgages

“Americans flush with cash as they regain equity in their homes are spending more after years of pinching pennies.”

 

New ECOA rule means collateral valuation pipelines may be leaking

“The Consumer Financial Protection Bureau’s Equal Credit Opportunities Act valuations rule, which goes into effect Jan. 18, mandates that all borrowers confirm statements prior to receiving an electronic copy of any appraisal report.”

 

The wrong vote on this Senate bill will cost billions

“A key vote on a bill that would put on hold key flood insurance rate hikes was delayed Wednesday, but the bill should be back up for a vote next week.”

 

UNDERWATER MORTGAGES: Equity on the rise in Inland homes

“Fewer foreclosures were deeply underwater on home equity in December, and the percentage of mortgaged homes in the Inland region with negative equity fell to 23 percent, a new report from real estate information service RealtyTrac revealed.”

 

REAL ESTATE: Lending basics restored in 2014

“The new consumer protections for homeowners take effect on Friday, Jan. 10.”

 

Shadow Inventory Lowest Since August 2008

“The industry’s shadow inventory of homes with mortgages 90 or more days delinquent, in foreclosure, or held as REO by mortgage servicers but not currently listed on multiple listing services (MLSs)—also known as pending supply—stood at 1.7 million as of October 2013, according to CoreLogic.”

 

Nation’s No. 3 Credit Union Adopts Mortgage Harmony’s ‘Rate Reset’

“Mortgage Harmony Corp., the provider of Loan Retention Software (LRS) and the HarmonyLoan product, announced that its Rate Reset Protection software has been added to online applications on select mortgage products from Pentagon Federal Credit Union (PenFed), the country’s third largest credit union.”

 

Freddie Mac Multifamily Prices First Securities Offering This Year, K-714

“MCLEAN, VA–(Marketwired – Jan 10, 2014) – Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (“K Certificates”), which are multifamily mortgage-backed securities. The approximately $1 billion issuance of K Certificates (“K-714 Certificates”) is expected to settle on or about January 28, 2014.”

 

What Does Your Mortgage Really Cost?

“The government has just come out with a new form designed to explain how much a mortgage really costs. It took two years of study, revision and editing to perfect the Consumer Financial Protection Bureau’s new “loan estimate” form, paperwork designed to help consumers make better mortgage choices and hopefully avoid higher loan costs and needless foreclosures.”

 

Jobs report blues: Did the Fed screw up?

“FORTUNE — The Fed has been too cheery about the economy before, and Friday’s jobs report may prompt many to wonder if the central bank screwed up again.”

 

What the new mortgage rules mean for you

“New mortgage lending rules are going into effect Friday that aim to put an end to the worst mortgage lending abuses of the past.”

 

Wall Street Predicts $50 Billion Bill to Settle U.S. Mortgage Suits

“Wall Street could pay nearly $50 billion to buy peace from federal authorities who are taking aim at the banks over their role in the mortgage crisis, according to interviews and a confidential analysis of the industry’s potential legal exposure.”

 

FHFA delays inevitable g-fee hike

“Just before Rep. Mel Watt, D-N.C., was officially sworn in as director of the Federal Housing Finance Agency, the agency said it would increase guarantee fees.”

 

Phoenix housing recovery stalls

“The Phoenix housing market continues to see home price gains, but those jumps are not as steep as before since the state is now dealing with an exodus of investors.”

 

5 big promises the White House is making now about housing

“The Secretary of Housing and Urban Development joined the education and agriculture secretaries Thursday in a press conference to elaborate on what will be involved in President Obama’s new “promise zone” initiative.”

 

HUD AWARDS $16.3 MILLION TO HUNDREDS OF PUBLIC HOUSING AUTHORITIES TO PROMOTE FAMILY SELF-SUFFICIENCY

“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today awarded nearly $16.3 million in grants to help public housing residents to gain access to education, job training and employment. HUD’s Public Housing Family Self-Sufficiency Program (PH-FSS)helpspublic housing authorities across the country to hire or retain more than 300 program coordinators who will work directly with families to connect them to the supportive services that meet their individual needs and to become gainfully employed.”

 

California baby boomers and the golden real estate handcuffs: Examining the real numbers behind generational real estate wealth.

“Americans tend to shun generational transfers in wealth especially when they are unwarranted and not based on individual merit. Heck, revolutions were fought with much bloodletting to rid the heavy chains of an aristocratic class that handed down the baton of wealth to future heirs. The question of baby boomers and real estate is an important one because you have one generation with much of their wealth tied up in one asset class while younger generations struggle to get by. In California, Prop 13 has been the subject of much debate and was at the hub of a rallying cry back in 1978 for tax reform, a rally many baby boomers remember (the older baby boomers were already in their early 30s at this point). One issue that constantly comes up with Prop 13 is that you don’t want grandma thrown out to roam around the streets of L.A. Of course, this assumption is that most people stay put in one home for 30-years (this is factually not the case). People move. A lot. The figures for California highlight a mobile class which flies in the face of Prop 13 justifications since properties are typically reassessed when they transfer hands.”

 

Home buyers and sellers buckle up

“This will be a year of adjustment for the San Fernando Valley’s housing market.”

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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 10.23.2013

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 10.21.2013

Summary:
CNBC shares Jamie Dimon’s, of JPMorgan, reaction to the bank’s settlement with the U.S. & that the Fed might not be tapering for months due to the government shutdown. CNN Money shares  “5 things to know about JPMorgan settlement.” Reuters reports that home sales in existing homes have fallen and home price appreciation is slowing. Bloomberg says the FHFA is holding banks accountable for their part in the burst of the housing bubble & it’s effects. According to the Review Journal, many layoffs can be attributed to slowing of the mortgage refinance boom. The Housing Wire states that investors are once again being attracted to RMBS, California received the most government aid in housing relief funding. Newsweek examines how much the government shutdown cost the U.S. Dr. Housing Bubble shares some great data in two different blog posts – 1. The continuing increase in renters & 2. What the 2014 California housing market may look like.  

‘We’re trying to get our problems behind us’: Dimon
“”We’re trying to get it resolved.” That’s what JPMorgan Chase Chairman and CEO Jamie Dimon told CNBC on Monday, in reaction to news that the bank has reached a tentative $13 billion settlement with the U.S. Justice Department, the New York attorney general, and the Federal Housing Finance Agency over allegations of sales of shoddy mortgage securities.”

Fed’s Evans: Shutdown may delay taper by months
“The Fed may not begin tapering for months because the government shutdown has left the economic picture unclear, Chicago Fed President Charles Evans told CNBC on Monday.”

Five things to know about JPMorgan settlement
“The tentative deal that JPMorgan Chase reached over the weekend with the Justice Department will cost the bank $13 billion, a record penalty.”

U.S. existing home sales fall, price appreciation slows
“(Reuters) – U.S. home resales fell in September and prices cooled as higher mortgage rates took the edge off the housing market recovery.”

Federal Housing Chief Holds Banks to Account
“Two years ago, the Federal Housing Finance Agency sued 18 banks for losses on $200 billion in private-label mortgage bonds purchased by Fannie Mae and Freddie Mac. That strategy is now paying off. JPMorgan Chase & Co. is negotiating a $13 billion settlement with the U.S. government that would feature a $4 billion payment to the FHFA. Today, Bloomberg News reports that Bank of America Corp. might pay the FHFA at least $6 billion for dodgy bonds issued before the crisis.”

FHFA Is Said to Seek at Least $6 Billion From BofA for MB
“A U.S. housing regulator is seeking at least $6 billion from Bank of America Corp. to settle civil claims the firm sold faulty mortgage bonds to government-backed finance companies Fannie Mae and Freddie Mac, according to a person with direct knowledge of the discussions.”

Job layoffs as mortgage refinance boom slows
“A recent spike in interest rates has caused a decline in refinancing activity, a drop-off that has curtailed a two-year refinancing wave that started in 2011 and led to the nation’s largest banks shedding thousands of mortgage jobs.”

RMBS investors slowly gain steam in marketplace
“New and refinanced mortgages continue to move through the private-label residential mortgage-backed securities pipeline, attracting investors back into the space.”

California absorbs the most housing relief funds
“California received the largest portion of the Treasury’s Hardest Hit Fund as the state continued to recover from the large amount of unemployed and distressed homeowners impacted during the financial crisis.”

How the Shutdown Hammered the U.S. Economy
“How much has the government shutdown and the default threat cost us?”

Gen Renter: The continuing expansion of renters in the United States. A permanent generational shift.
“Never mistake luck with timing.  That is one lesson gamblers and so-called investors forget time and time again.  Even in baseball batting .300 is considered fantastic.  The rhetoric being uttered by some people is similar to what was being said only a few years ago.  Of course, the voices of the 5,000,000+ that went through foreclosure is largely drowned out similar to those that went all in with tech stocks right before the bust (where are the Pets.com investing geniuses?).  Not to quote an Alanis Morissette song but isn’t it ironic?  Suddenly folks that bought in 2011 or 2012 act as if they deserve a Ph.D. in economics.  Don’t mistake luck with investing acumen.  These people are caught up in the low rate, low inventory, and investor driven uptrend.  California is an excellent example of this.  Home prices are rising at astounding speeds pricing many out of the market.  It is no surprise that the number of renters in the state is surging as well (this is also a nationwide trend).  Investors dominate the market.  A cap rate of 4 percent may be reasonable when the Fed is artificially creating a negative interest rate environment.  This generational divide is going to continue and as usual, the US is going to undergo some dramatic changes including a growing renting class.”

30 years of booms and busts for California real estate: What does 2014 have in store for California real estate?
“For the first time in nearly two years the California housing market showed some brief signs of cooling.  The median price dipped and sales slowed down.  The mortgage rate turbulence of the summer is likely to show up in late fall since the process of buying a home with escrow takes a bit of time to register in the current data.  Although this is a current trend in terms of sales and prices we’ve also discussed why it is unlikely that California baby boomers will suddenly unload properties in mass.  These owners may have equity trapped in their home but the only way to unlock it is via selling the place or going with a reverse mortgage which is like raiding the bank before handing something over to your heirs.  California real estate has been in a perpetual cycle of booms and busts for nearly 30 years.  That is why it is interesting to see the 2014 forecast put out by the California Association of Realtors (C.A.R.).  The forecast is modest yet past history tells us a different story.”