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Real Estate News 2.20.14

Priceline for landlords may determine your next rent
“Your next rent hike may be determined by a sort of Priceline.com for landlords.”

Is the housing recovery losing steam?
http://finance.fortune.cnn.com/2014/02/19/is-the-housing-recovery-losing-steam/
“FORTUNE — 2014 was supposed to be the year that the construction industry finally took off.”

Jobless claims fall in February payrolls survey week
“(Reuters) – The number of Americans filing new claims for unemployment benefits fell last week, pointing to steadily improving labor market conditions, despite two straight months of weak hiring.”

Stevens: Give National Servicing Standards a Chance to Work
“Mortgage Bankers Association (MBA) President David H. Stevens congratulated mortgage servicers attending MBA’s National Mortgage Servicing Conference on Wednesday for surviving the past few years with the ‘staggering amount of change’ from new rules and regulations and the ‘intense scrutiny of policymakers, regulators, and the news media.'”

Can servicers bridge the trust gap with homeowners?
“It is hard to characterize the entire mortgage servicing industry, but the zeitgeist at the Mortgage Bankers Association’s National Mortgage Servicing Conference & Expo is that things are better now than they were two years ago.”

New U.S. housing regulator hears concerns on tight credit
“Feb 19 (Reuters) – The new regulator of Fannie Mae and Freddie Mac has made it a priority to meet with housing and real estate trade groups, the latest signal that he is taking their concerns about credit availability on board.”

Obama Officials Quiet on Refi Expansion
“Remarks by a top Obama administration official muddied the waters last week over whether the administration supports a key technical change to its signature home-refinancing program.”

Citigroup launches RMBS
“Citigroup (C) is releasing details of its second residential mortgage backed securitization since the housing recovery began.”

Waning Mortgage Refinancings Make New Deals Safer, Moody’s Says
“A trend of fewer homeowners refinancing their mortgages as interest rates climb is helping to curb sales of home-loan bonds without government backing. It’s also making new notes being issued safer, according to Moody’s Investors Service.”

Lawmaker Urges U.S. Regulators to Scrutinize Mortgage Servicers
“Representative Maxine Waters of California is urging federal banking regulators to scrutinize the sale of billions of dollars of mortgage-servicing rights to a fleet of specialty firms, a move that comes amid mounting concerns that some of the most vulnerable homeowners are facing fresh abuses in battles to save their homes.”

BofA $8.5 Billion Mortgage Settlement Delay Bid Rejected
“Feb. 19 (Bloomberg) — Bank of America Corp.’s $8.5 billion settlement with mortgage-bond investors won’t be delayed after American International Group Inc. and other objectors asked for a hearing to address loan modifications excluded from the accord, a state judge ruled.”

Average monthly house payments jump 21% in fourth quarter
“The estimated monthly house payment for a median-priced three-bedroom home purchased in the fourth quarter of 2013 — and that includes mortgage, insurance, taxes, maintenance, and subtracting the estimated income tax benefit — increased an average of 21% from a year ago in the 325 U.S. counties included in an analysis by RealtyTrac.”

Who says poor construction numbers won’t bend positive trajectory?
“U.S. home construction just cratered in January, dropping 16%, according to the U.S. Census Bureau.”

What did the Fed say that matters to the housing market?
“The big takeaway from the minutes of the Federal Open Markets Committee January meeting for the housing industry is that tapering is likely to continue apace, and that the Federal Reserve is throwing out its previous goal post of 6.5% unemployment in favor of an ill-defined mandate for continued quantitative guidance.”

What could boost the credit quality of Jumbo RMBS?
“Moody’s Investors Service’s exclusive client report “Slowdown in Mortgage Refinancing is Credit Positive for New Jumbo RMBS” charges that lower mortgage refinancing volume could lead to a higher proportion of purchase loans in new jumbo residential mortgage-backed securities, boosting the credit quality of the pools because purchase loans typically have lower default rates.”

Is HomeStreet getting back into jumbo mortgages?
“The residential mortgage side of the business for HomeStreet Bank is stalling.”

Why is the Miami real estate market burning so hot?
“Strong demand for real estate in the city styled the “Capital of Latin America” resulted in a third consecutive record sales year and two years of double-digit price appreciation.”

Are the states going to come after servicers again?
“The weather didn’t stop them – or maybe it drove them—but more than 1,200 attendees made it to this year’s Mortgage Bankers Association’s National Mortgage Servicing Conference in Orlando. That’s roughly the same as last year, according to Dawn Williams, who organizes the conference for the MBA.”

REAL ESTATE: It’s getting tougher to buy a house
“Inland Southern California has pushed past the affordability level that allows median income households to buy a house, a new report from RealtyTrac suggests.”

Online Real Estate Service Trulia Relaunches Its Mobile Apps
“Just ahead of the spring house hunting season, the online real estate service Trulia today launched a major redesign of its flagship mobile apps for iOS and Android.”

Boise’s newest real estate boom tops the nation
“BOISE – Boise real estate agents are currently reporting the biggest housing boom in the nation.”

HUD AND CENSUS BUREAU ANNOUNCE NEW RESIDENTIAL CONSTRUCTION ACTIVITY IN JANUARY
“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau today announced the following new residential construction statistics for January 2014…”

Fixed Mortgage Rates Tick Up
“MCLEAN, VA–(Marketwired – Feb 20, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates up slightly for the second week in a row.”

10 Secrets to Landing a Foreclosure Bargain in 2014
“At the risk of sounding self-serving, we here at RealtyTrac earnestly contend that 2014 will represent one of the best years in recent memory for a low-risk, high-reward foreclosure purchase.”

Auction.com and NAHREP Partner to Advance Homeownership
“Auction.com and the National Association of Hispanic Real Estate Professionals (NAHREP) are joining forces to advance sustainable Hispanic homeownership.”

Increased Inventory Slows Home Value Growth
“In a report released by Zillow, national home values rose just .2 percent in January from December. Inventory rose in 22 of the nation’s 35 largest metros, and helped slow down the rising value of homes.”

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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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Today’s Real Estate News 10.30.2013

Summary:

In today’s news, CNN Money reports private sector hiring lowest in 6 months. Reuters shares Janet Yellen, president of the Federal Reserve Bank of San Francisco, was concerned over the housing bust but chose not to go public. Senate Majority Leader, Harry Reid, stated Yellen’s confirmation for head of the Federal Reserve should go smooth. Freddie Mac claims to have securitized $1 Billion of HAMP Performing Mortgage Loans. DS News reports serious delinquencies hit a five-year milestone. The MBAA reports an increase of mortgage applications this week. Since 2010, “foreclosure rescue schemes” have more than doubled according to the Housing Wire. Housing Wire also reported more uncertainty among mortgage servicers, the Office of the Comptroller of the Currency called for banks to practice effective risk management whether the banks chose to do it themselves or seek outside assistance and banks & business trade groups called for more “checks and balances” for the Consumer Financial Protection Bureau. Wells Fargo plans to donate $6 Million to 67 different nonprofits for the “2013 Leading the Way Home Program Priority Markets Initiative” which will help to revive heavily distressed neighborhoods. Multi-family loan provider, Greystone, introduces an affordable multi-family loan program. San Diego’s local newspaper shares La Jolla resident sentenced to five years in prison and fined $1.4 million in restitution for deceiving homeowners around the nation he could help modify their home loans. MSN shares a story of an oddly small & narrow house built on a lot out of spite, you have to see the pictures to appreciate this story!

Private sector hiring slowest in 6 months

“Private sector employers added just 130,000 jobs in October — their lowest level of job growth since April, according to a report by payroll processor ADP. The pace of hiring has been slowing since June, but the government shutdown earlier this month appears to be a main reason for the sluggish hiring in October.”

INSIGHT-Yellen feared housing bust but did not raise public alarm

“Oct 30 (Reuters) – When Janet Yellen became president of the Federal Reserve Bank of San Francisco in June 2004, a massive real estate bubble was building in the vast nine-state area that it oversees.”

Reid expects Yellen to be ‘easily’ confirmed as Fed chair

“Oct 29 (Reuters) – U.S. President Barack Obama’s nomination of Janet Yellen to head the Federal Reserve appears headed toward a smooth confirmation by the Democratic-led Senate, Senate Majority Leader Harry Reid said on Tuesday.”

Freddie Mac Securitizes $1 Billion of HAMP Performing Mortgage Loans

“MCLEAN, VA–(Marketwired – Oct 30, 2013) – Freddie Mac (OTCQB: FMCC) announced today that it has begun securitizing performing Home Affordable Modification Program (“HAMP”) modified mortgage loans held in the company’s mortgage-related investments portfolio. These loans were modified to assist borrowers who were at risk of foreclosure, thereby assisting them with keeping their homes. Since the US Treasury launched the program in March 2009, 229,000 borrowers have received permanent HAMP modifications on Freddie Mac-owned loans.”

Serious Delinquencies Hit Five-Year Milestone

“Mortgage delinquencies are on the decline, according to a report from Equifax. Home finance write-offs so far this year total $96.3 billion, down 22 percent compared to the same time period last year, the company says.”

Mortgage Applications Increase in Latest MBA Weekly Survey

“WASHINGTON, D.C. (October 30, 2013) — Mortgage applications increased 6.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 25, 2013.”

Foreclosure rescue scheme complaints more than doubled

“Foreclosure rescue schemes have more than doubled since 2010, according to data collected by federal regulatory agencies.”

Uncertainty about the future plagues servicers

“Mortgage servicers flourished during the financial crisis and have exponentially grown their businesses, largely through acquisitions of credit-impaired residential mortgage servicing portfolios. But all of this is about to change, according to a recent report from Moody’s Investors Corp. (MCO).”

OCC sounds alarm on risk management of third parties

“Banks need to practice effective risk management regardless of whether the bank performs the activity internally or through a third party, the Office of the Comptroller of the Currency said Wednesday.”

Banks, business trade groups push for CFPB reform

“The Consumer Financial Protection Bureau lacks the check and balances, the financial accountability and the transparency that is generally found at other financial regulators operating out of Washington D.C., experts told the House Financial Services Committee on Tuesday.”

Wells Fargo donates $6 million to revitalize communities

“Wells Fargo (WFC) will donate $6 million across 67 nonprofits through the 2013 Leading the Way Home Program Priority Markets Initiative to help revitalize and stabilize neighborhoods.”

Greystone premieres affordable loan program

“Greystone, a provider of multifamily loans, premiered its Greystone Affordable Loan Program, which provides long-term, fixed, forward rate-lock financing for affordable multifamily housing.”

La Jolla man popped for sham loan mods

“A La Jolla man has been sentenced to five years in prison and ordered to pay $1.4 million in restitution for defrauding homeowners around the country who had turned to his sham company for help modifying their loans.”

This weird, tiny house in Seattle was built out of spite, locals say

“A house this small and strange-looking would be interesting on its own, but local legend says the reason it exists is pure spite. Known as the Montlake Spite House, this pie-shaped Seattle house is only 830 square feet and was recently for sale for $397,500. Why would anybody build a house like this? The widely accepted story is that a neighbor offered to buy the small corner lot from the property owner. The lowball offer he made was so insulting that the owner built this house on the lot just to annoy his cheap neighbor. Is that what actually happened? There’s some debate there, but why let that get in the way of a good story?”

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Today’s Real Estate News 10.16.2013

Summary:
CNN Money reports Bank of America posts a profit in the 3rd quarter, relieving investors after breaking even last year. Housing Wire shares that Fannie Mae is working on a risk-sharing transaction for next year, FHFA refinance activity slows, mortgage applications barely changed this week, National Mortgage Settlement is closer to meeting consumer-relief mandates and 67,000 home loan modifications have been finalized in August. Bloomberg states that U.S. Bancorp’s profit was little changed on lower bad loan provisions and homebuilder confidence has dropped more than it has in the past four months. Market Watch reports a 12% profit growth for PNC Financial. NY Times posts a profit for Blackrock. Reuters shares mortgage insurer MGIC profit.  CNBC reports that Fitch Ratings put the government’s “AAA credit rating on ‘rating watch negative.’” Dr. Housing Bubble shares a wealth of data in his blog post titled “The inefficient and fragile housing market: How trying to increase homeownership can backfire and add costs to regular home buyers.”

Bank of America swings to a profit
“Bank of America swung to a profit in the third quarter after breaking even last year. And investors breathed a sigh of relief.”

Fannie Mae plans next risk-sharing deal
“Mortgage giant Fannie Mae is working on another risk-sharing transaction for 2014, keeping in line with the firm’s plan to bring private capital back to the mortgage market.”

FHFA refinance activity declines
“Refinance volumes continued to decline in August as mortgage rates inched up from July levels.”

National Mortgage Settlement progress report: Big banks closer to finalizing consumer relief
“The mega lenders subjected to the National Mortgage Settlement are closer to meeting the consumer-relief mandates rolled out as part of a nationwide initiative to compensate borrowers for past servicing issues.”

67,000 home loan mods finalized in August
“Mortgage servicers modified 67,000 home loans in August, up 8% month-over-month, bringing the total amount of loans modified since 2007 to 5.4 million, Hope Now said Wednesday.”

U.S. Bancorp Profit Little Changed on Lower Bad Loan Provisions
“U.S. Bancorp, the nation’s biggest regional lender, said third-quarter net income was little changed as revenue fell and the bank set aside less for bad loans.”

PNC Financial’s profit up 12% on loan growth
“PNC Financial Services Group Inc.’s PNC +1.74% third-quarter earnings rose 12% as the regional lender’s results were helped by loan growth and improved credit quality, though net interest margin, a key measure of lending profitability slipped.”

BlackRock’s Profit Rose 14% in Third Quarter
“The giant money management firm BlackRock is now managing a record $4 trillion after customers put more money into its stock mutual funds and exchange traded funds.”

UPDATE 1-Mortgage insurer MGIC posts profit as housing market recovers
“Oct 16 (Reuters) – Mortgage insurer MGIC Investment Corp posted its second straight quarterly profit, after six years of losses, as a recovery in the U.S. housing market lowered the number of defaulters.”

Mortgage applications barely shift
“Mortgage applications barely changed during the week ending Oct. 11, rising only 0.3% from a week earlier, the Mortgage Bankers Association said Wednesday.”

Fitch puts US AAA rating on rating watch negative
“Fitch Ratings put the US government’s “AAA” credit rating on ‘rating watch negative’ Tuesday, saying that the standstill on the U.S. debt ceiling negotiations risks undermining the effectiveness of the country’s government and political institutions.”

The inefficient and fragile housing market: How trying to increase homeownership can backfire and add costs to regular home buyers.
“It was interesting to see that this week, the Nobel Prize, the biggest prize in economics went to three US economists, one being “irrational exuberance” Robert Shiller.  Markets for the most part are presumed to be efficient and what Shiller points out is the weaknesses inherent with this model.  The housing market is a perfect example.  The market is extremely inefficient when it comes to housing.  We massively subsidize this sector of the economy with the outward notion of helping regular buyers but do the opposite.  For example, the Fed’s QE initiatives have caused asymmetrical bets from financial institutions into residential real estate.  Largely because of this financial structure we went from a real estate market in free fall to one highly subsidized by low rates causing investors to crowd out regular buyers.  Prices now surge while the homeownership rate falls.  Of course how can the market be called efficient when the Fed provides this below market interest rate to a select group of people?  Is the public privy to this?  What use is a low rate when a bigger player comes in with all cash?”

Homebuilder Confidence in U.S. Declines to Lowest in Four Months
“Confidence among U.S. homebuilders fell more than forecast in October to a four-month low as rising interest rates and the budget battle in Washington stifled progress in the housing market.”