Posted on

Real Estate News 1.20.2014

U.S. seen on track for best growth since 2005
“WASHINGTON (MarketWatch) — Think the disappointing U.S. jobs report for December has dampened the optimism of economists about the new year? Think again.”

Rates, tight inventory dampen California home sales
“California home sales dipped 5.9% from 2012 to 2013 as the market felt the pinch of tighter inventory levels and higher prices, the California Association of Realtors reported this past month.”

Monday Morning Cup of Coffee: Deutsche Bank posts $1.6B loss
“Monday Morning Cup of Coffee takes a look at news coming across HousingWire’s weekend desk, with more coverage to come on bigger issues.”

BofA escapes damages in Merrill Lynch suit
“The office of New York Attorney General Eric Schneiderman admits he will not seek damages from Bank of America (BAC) over its risky $18.5 billion purchase of Merrill Lynch back in 2009.”

5 secrets to winning online property auctions
” Online auctions are growing in popularity.

Websites like auction.com are killing it; making bundles of money selling houses online, while giving investors a whole new world for buying properties.”

Young Americans on homeownership strike?
“They used to say never trust anyone over 30. Those words obviously rang true 20 years ago when the average 30-year-old typically managed to obtain a modicum of stability in their life in the form of a stable job and a mortgage.”

NAFCU’s Dirty Dozen
“The National Association of Federal Credit Unions (NAFCU) published a list of what it calls the “Dirty Dozen” — a series of goals that the organization has for 2014.”

When It Comes To Real Estate Bubbles, China’s Got Nothing On Brazil
“World investors may be worried about China’s real estate bubble. But only one country surpasses that market’s housing boom, and that’s Brazil.”

Real estate still tragically unequal
“Greater Boston is already one of the toughest markets in the country for both renters and buyers, with skyrocketing housing costs and scarce listings.”

Report: Troubles Ahead for Commercial Real Estate Loan Refinancing
“With an estimated $1.4 trillion in commercial mortgages due to mature between 2014 and 2017, lenders and investors may be in for a flood of refinancing that could present new challenges for the market, according to a December 2013 year-end Trepp report.”

Real estate investment trusts are an under-embraced asset class
“Out of the ruins of the housing crisis, a new asset class has emerged: publicly traded, single-family residential real estate.”

1 Massive Threat to Real Estate Across the Country
“Lately, most news involving the recovery of the housing market in the United States has been overwhelmingly positive. However, there is one issue that poses a dangerous threat to the recovery in housing: flood insurance.”

HUD AND CENSUS BUREAU ANNOUNCE
NEW RESIDENTIAL CONSTRUCTION ACTIVITY IN DECEMBER
“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau today announced the following new residential construction statistics for December 2013:”

Cash investors altering psychology of real estate market: Can the regular home buyer compete with the big money from Wall Street?
“Investor buying has pushed the real estate market into uncharted territory.  Starting in 2008 after the crash in home values, investors at first stepped in slowly and now they represent a dramatic share of all home purchases.  This may not matter to some in most states across the US but in places where investors are heavily focused, the power wielded by this group is still large.  Sellers for the most part, this includes the banks off-loading distressed properties (aka repossessed homes), look for quick sales at the highest price.  Sounds simple enough.  Yet most in the public stand no chance with the large money crowd.  For example, I know of people in targeted areas that scout for distressed properties and show up at auctions with checks ready to bid on properties.  Some are individual investors and some work for a larger system of buyers.  It is no new game with investors in the market but the volume of big institutional investors is definitely something new.”

Fed taper could hit housing market
“The stakes are high for San Diego’s housing market as the Federal Reserve tapers the national economy off super-low interest rates.”

Why Jumbo Mortgages Are So Cheap
“Jumbo mortgages — gigantic loans which historically have been much-more expensive than FHA, VA and conventional financing — are selling at a discount. In fact, at the start of December elephantine loans were cheaper than conventional mortgages.”

New Mortgage Risk Index Exposes Market Vulnerabilities
“A new initiative of the American Enterprise Institute (AEI) aims to mitigate the damage of housing’s boom-and-bust cycles. It utilizes a new Mortgage Risk Index developed by a former chief credit officer of Fannie Mae and a 25-year veteran of the Federal Reserve.”

Lenders Continue to Lower Credit Requirement Thresholds
“After loosening steadily for several months, credit standards for mortgage loans ended 2013 at their lowest level all year, according to the December Origination Insight Report from Ellie Mae.”

California Home Sales Abate to Close Out Year
“Single-family and condominium sales in California closed 2013 on a cautiously positive note, even though overall sales were down notably from the year prior, according to the latest quarterly market activity report from real estate tracking firm PropertyRadar.”

Expediting the Empties
“Can servicers and their partners in the field work through the many obstacles that come with fast-tracking vacant foreclosures?”

Posted on

Real Estate News 1.17.2014

Roubini: U.S. economy will disappoint in 2014
“FORTUNE — Dr. Doom is back, sort of.”

Realtors® Rate Exterior Replacement Projects Among Most Valuable Home Improvements
“WASHINGTON (January 16, 2014) – A home’s curb appeal is crucial because it can be the first thing buyers notice about a home. That’s why Realtors® rated exterior projects among the most valuable home improvement projects in the 2014 Remodeling Cost vs. Value Report.”

Lower Mortgage Refinancing Activity Hits Citi Profit And Revenue
“If there was ever any question about the nation’s appetite for new and refinanced mortgages, Citigroup’s disappointing fourth quarter earnings results leave very little room for doubt: it’s weak.”

Shawnee County implores Legislature to keep mortgage fees
“As taxes go, the mortgage registration fee historically has fallen below the three budgets it is supposed to support.”

FBI Suspects Front-Running of Fannie, Freddie Swap Orders
“Bank employees may have profited by trading ahead of Fannie Mae and Freddie Mac swap orders, Reuters reported, citing a description of the practice in a U.S. Federal Bureau of Investigation intelligence bulletin.”

CFPB Provides New Guidance on Appraisal Disclosures
“The Consumer Financial Protection Bureau has provided an update to National Mortgage News on a story with inaccurate information about appraisal disclosures. Under the qualified mortgage rule, lenders are required to provide borrowers with all appraisal reports ordered or requested in conjunction with a loan application.”

Mortgage exec says don’t fear new rule on loans
“Wells Fargo Home Mortgage President Mike Heid spoke in favor of the federal government’s new qualified mortgage rule Thursday at a gathering of Des Moines-area business leaders.”

Banks Keep Their Mortgage Litigation Reserves a Secret
“From JPMorgan Chase’s $13 billion settlement over mortgage securities to lawsuits brought by bondholders, a barrage of litigation has been raining down on Wall Street banks. Yet the banks are not disclosing a number that is crucial for assessing their ability to deal those legal costs. And, curiously, the regulator that has sway over companies’ disclosure practices has not called on the industry to reveal this important figure so that investors can weigh the institutions’ health.”

Alabama court thinks landlords need more foreclosure protection
“Lawfirm Ballard Spahr is reporting that an Alabama federal court is suggesting that borrowers can allege invalid mortgage assignments — if a portion of the property has tenants.”

GSE reform idea puts private capital back in driver’s seat
“Representatives John K. Delaney, D-Md., John Carney, D-Del., and Jim Himes, D-Conn., are putting together a housing finance reform proposal that uses private sector market forces to price risk while providing the security of a government guarantee behind the program.”

Housing starts drop 9.8%
“While housing starts dropped 9.8% from November to December, they did manage to grow 1.6% from December 2012, the U.S. Census Bureau said Friday.”

Real estate prices appreciate at a slower pace
“While residential real estate appreciation continues to trend higher, the rapid pace experienced early last year is easing, Veros Real Estate Solutions said in its latest VeroFORECAST report.”

$669 million Fannie, Ginnie portfolio sale hits market
“Mortgage Industry Advisory Corp. is overseeing the sale of a $669.22 million Fannie Mae and Ginnie Mae mortgage-servicing portfolio, the company announced Friday.”

4 key housing trends
“Key indicators show housing moving in a positive direction, paving the way for an ongoing recovery, the latest Freddie Mac Economic and Housing Market Outlook shows.”

New Lenders for Real-Estate Investors
“A new lender is knocking on wealthy real-estate investors’ doors.”

HUD AND CENSUS BUREAU ANNOUNCE
NEW RESIDENTIAL CONSTRUCTION ACTIVITY IN DECEMBER
“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau today announced the following new residential construction statistics for December 2013…”

Freddie Mac Prices New $4.5 Billion Three-Year Reference Notes® Security
“MCLEAN, VA–(Marketwired – Jan 17, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it priced its new .875% three-year USD Reference Notes® security due on February 22, 2017. The issue, CUSIP number 3137EADT3, was priced at 99.839 to yield .928%. The issue will settle on Tuesday, January 21, 2014.”

San Fernando Valley home, condo prices soared in 2013
“The San Fernando Valley’s housing market shook off the shackles of the Great Recession during 2013, according to a report released Thursday.”

Rich Chinese continue to flee China
“Do the wealthy Chinese know something we don’t?”

Construction up, but are we building too many houses?
“The year-end numbers are in, and home construction improved dramatically in 2013. Both single- and multi-family housing starts were up, by 15 and 25 percent, respectively, according to the U.S. Census. Add it all up and total housing construction rose 18 percent from 2012 to the highest level since 2007.”

The Mortgage Professor: Breaking the logjam on reverse mortgages
“People reaching retirement age are living longer than ever, and retiring with less capacity to maintain their living standards. With good reason, this situation has been termed a ‘retirement funds crisis.'”

Posted on

Real Estate News 1.16.2014

Trulia set to serve up sellers as ‘leads’ to real estate agents
Selling the contact information of prospective homebuyers to real estate agents as buyer “leads” has long been the bread and butter of listing portals like Zillow, Trulia and realtor.com.”

Trulia’s housing indicator shows mixed market (VIDEO)
“It’s going to be an uneven recovery, says Sean Aggarwal, Chief Financial Officer at Trulia, sharing his thoughts on the outlook on housing. We¿ve seen a very sustained recovery in 2014, says Aggarwal.”

Foreclosures hit six-year low in 2013
“Last year was a banner year in the fight against foreclosures, with filings hitting their lowest level since 2007.”

World economy on recovery road, but weak inflation threatens: Reuters poll
“(Reuters) – A much better year lies in store for most of the world’s major developed economies, although weak inflation will persist, complicating central banks’ ability to get interest rates back to normal, Reuters polls forecast on Thursday.”

Why banks aren’t lending to homebuyers
“‘Despite the confluence of promising signs,” write Peter Eavis and Jessica Silver-Greenberg today, “little in the vast system that provides Americans with mortgages has returned to normal since the 2008 financial crisis, leaving a large swath of people virtually shut out of the market.'”

Some banks made to pay cities for foreclosing on properties
“Canton officials say they have found a way to hold banks accountable for foreclosed and vacant properties in the northeastern Ohio city.”

FHA: The incredible, shrinking mortgage resource
“Is FHA sending its most profitable, lowest-risk customers — homebuyers who have very good to excellent credit — to Fannie and Freddie for their mortgages, thereby losing significant market share?”

‘Worst of all worlds’ for mortgage lending in fourth quarter
“The country’s top three mortgage lenders confirmed this week that new home loans dropped last year as mortgage rates rose, with earnings results Wednesday from Bank of America showing a 46% year-over-year drop in the fourth quarter.”

The bear and bull cases for mortgage REITs in 2014
“WASHINGTON (MarketWatch) — Shareholders of real estate investment trusts that invest in mortgage-backed securities had a rough 2013, and while rising rates continue to pose a risk, there could also be buying opportunities, analysts say.”

Did Fannie Mae run afoul of California’s short sale laws?
“Fannie Mae and its servicers maybe broke the law in California when collecting contributions from borrowers on short sales, the office of the inspector general for the Federal Housing Finance Agency claims in a new report. The government-sponsored entity, while not admitting culpability, said a data error may be to blame.”

BofA Says Profit Quadruples as Mortgage Costs Ebb
“Bank of America Corp., the second-biggest U.S. lender, quadrupled its quarterly profit and beat Wall Street estimates as the company quelled claims tied to defective mortgages. The stock reached its highest level in more than three years.”

Freddie Mac: Mortgage rates hit monthly low
“Mortgage rates took a step back due to signs of a weakening economic recovery, according to the latest Freddie Mac Primary Mortgage Market Survey.”

Collapse in refis drive Citi earnings miss
“Citigroup (C) drove a 21% increase in fourth quarter earnings, but that wasn’t enough to reach analyst expectations as a weakening mortgage business proved too tough a headwind to overcome.”

Goldman Sachs sets aside plenty of cash for mortgage lawsuits
“Goldman Sachs (GS) reported fourth-quarter revenues and profit topping Wall Street estimates, bouyed by a resurgent IPO market that boosted investment banking revenue.”

Citi sells Fannie Mae MSRs … to Fannie Mae
“Fannie Mae has purchased mortgage servicing rights on about 64,000 of its own loans from Citigroup (C), as the nation’s 3rd largest lender looks to shed future liabilities tied to its servicing practices.”

Jobless claims fall by 2,000 filings
“Jobless claims pulled back slightly for the week ending Jan. 11, and fell by 2,000 filings to 328,0000, the U.S. Department of Labor said.”

Why Mortgage REITs Deserve Some Love in 2014
“There’s nothing sexy about mortgage real estate investment trusts. They can’t talk to you like Siri or deliver packages with drones like Amazon envisions. But they currently yield 13 percent while Treasury bonds yield only 3.8 percent.”

REAL ESTATE: Bailing out of PMI
“Home prices rose so significantly across Inland Southern California in 2013 that consumers who have been paying private mortgage insurance on their home loans for years not only may be emerging from underwater home equity positions.”

REAL ESTATE: Earthquake coverage rumblings follow 4.4-magnitude temblor
“Twenty years after the Northridge quake of January 1994, the earth that rumbled and roared in Fontana on Wednesday, Jan. 15, gave many in the Inland region more than a 4.4-magnitude wake-up call.”

OBAMA ADMINISTRATION ANNOUNCES SEVEN ADDITIONAL CITIES
PARTICIPATING IN THE STRONG CITIES, STRONG COMMUNITIES INITIATIVE
“WASHINGTON – Today the Obama Administration announced it is expanding the Strong Cities, Strong Communities (SC2) Initiative to include Brownsville, TX; Flint, MI; Gary, IN; Macon, GA; Rockford, IL; St. Louis, MO; and Rocky Mount, NC. President Obama established SC2 in 2011 as an innovative and flexible program designed to strengthen local capacity, coordinate federal investments, and spark growth in economically distressed communities.”

Squeezing out the working class through higher rents: 11.3 million Americans spend more than half their income on rent in 2011, a jump of 28 percent from 2007.
“Welcome to landlord nation.  People need a place to live and a recent Harvard analysis found that more Americans are spending a larger portion of their income on housing.  More to the point, there are now 11.3 million Americans that spend half of their income on rent.  This is a significant jump of 28 percent from 2007.  Rents also went up throughout 2012 and the first half of 2013 so this figure has definitely increased.  Is this a good thing for households?  Probably not but that is simply the current trend.  This is also a reason why only 1 out of 3 households can actually afford a home in California and is a direct consequence of the massive flood of investors into the real estate market.  When properties go back into the market with artificially low supply, these owners have the ability to command higher prices.  The end result?  More money to landlords and less money in the pockets of renting households.  And with America becoming more of a renter nation, this is putting a strain on the budgets of many households.”

California AG Busts Statewide, Multi-Million Dollar Housing Scheme
“California officials on Wednesday arrested five individuals who allegedly ran a statewide housing scheme involving the fraudulent seizure of at least 23 homes in nine counties.”

Fed’s Beige Book Details Improvements in Regional Real Estate Markets
“Representatives from the Federal Reserve’s 12 districts reported moderate economic expansion across most of the country through the end of last year, with indicators pointing to more steady growth ahead.”

Taking the Temperature of the Market
“MCLEAN, VA–(Marketwired – Jan 16, 2014) – Freddie Mac (OTCQB: FMCC) released today its U.S. Economic and Housing Market Outlook for January showing that four of the key housing indicators are all moving in the right direction, which bodes well for an ongoing recovery. A short preview video, and the complete January 2014 U.S. Economic and Housing Market Outlook are available here.”

Fixed Mortgage Rates Move Lower on Economic Data
“MCLEAN, VA–(Marketwired – Jan 16, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates fall amid signs of a weakening economic recovery.”

Freddie Mac Multifamily Research Highlights Borrower Default Behavior
“MCLEAN, VA–(Marketwired – Jan 16, 2014) – New Freddie Mac (OTCQB: FMCC) research shows that a commercial real estate borrower’s loan default decision for an underperforming property is based on several factors, including property and loan characteristics, and economic and market conditions. The research [PDF], “Default Ruthlessness: Examining Borrower Default Behavior,” analyzed and compared borrower default behavior for CMBS loans and Freddie Mac multifamily loans. The research can help debt investors better manage their investment expectations.”

Freddie Mac Prices $1 Billion Reopening of 1.75% Seven-Year Reference Notes® Security
“MCLEAN, VA–(Marketwired – Jan 16, 2014) –  Freddie Mac (OTCQB: FMCC) announced today that it auctioned a $1 billion reopening of its 1.75% seven-year USD Reference Notes® security that matures on May 30, 2019. The stop yield for the issue, CUSIP 3137EADG1, was 1.947%, priced at 98.999425. The bid-to-cover ratio was 3.4 to 1.”

Freddie Mac to Issue a New Three-Year Reference Notes® Security and $1 Billion Reopening of 1.75% Reference Notes Security
“MCLEAN, VA–(Marketwired – Jan 16, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it plans to issue a new three-year USD Reference Notes® security, CUSIP number 3137EADT3, due on February 22, 2017. The issue will be priced on Friday, January 17, 2014, and will settle on Tuesday, January 21, 2014, at benchmark size.”

Posted on

Real Estate News 1.15.2014

Bill Seeks to Extend Federal Tax Exemption for Forgiven Mortgage Debt
“Congressman Bill Foster (D-Illinois) introduced the Homeowners Debt Relief Extension Act (H.R. 3856) on Tuesday. The bill would extend the mortgage debt tax exemption that’s been in place since 2007 for another two years.”

Early Earnings Reports Reveal Effects of Declining Mortgage Volume
“This season’s bank releases kicked off Tuesday with dual quarterly earnings reports from JPMorgan Chase and Wells Fargo—and as projected, weakened origination figures took their toll.”

Florida Law Firm Rebrands and Expands Service to Puerto Rico
“The veteran-, minority-, and woman-owned default law firm founded by Marisol Morales, Esq., announced its expansion into Puerto Rico and a name change from Morales Law Group, PA, to Millennium Partners.”

New Fed Survey Assesses Consumer Expectations
“A recently launched survey from New York’s Federal Reserve Bank shows consumer expectations for the next year remaining fairly flat in December.”

Which Hidden Gems Make Cut as Year’s Hottest Neighborhoods?
“Redfin on Tuesday came out with its annual list of the country’s “hottest” neighborhoods. The company ranked 105 neighborhoods across 21 major markets that have grown the most in popularity during the four months leading into 2014.”

Bank of America profit impresses Wall Street
“Bank of America impressed Wall Street Wednesday with better-than-expected earnings and revenue for the fourth quarter, continuing a trend of solid results from the nation’s largest banks.”

Fannie, Freddie watchdog in probe of alleged Wall Street front running
“(Reuters) – A U.S. government watchdog is involved in an investigation of whether bank traders manipulated markets and engaged in front running of orders from Fannie Mae and Freddie Mac in the interest-rate swaps market, according to an FBI intelligence bulletin reviewed by Reuters.”

The end of the mortgage party? Home lending plummets at Wells Fargo, J.P. Morgan Chase
“The mortgage party is officially over.”

Trade group expects less mortgage loan activity this year
“Mortgage loan activity this year will be less than expected because of higher interest rates and fewer applications, the Mortgage Bankers Association said Tuesday.”

QM storm could hit in weeks
“The Consumer Financial Protection Board’s Qualified Mortgage (QM) rule is going to constrict access to mortgage credit and possibly stall housing, and members of Congress and mortgage industry leaders want a lot more flexibility in dealing with the CFPB’s regulations that went into effect Jan. 10.”

December Gain in Retail Sales Gives U.S. a Lift: Economy
“Retail sales (RSTAXAGM) rose in December as frigid temperatures prodded Americans to buy discounted winter clothing and shop online for the holidays, capping what may have been the strongest quarter for consumer spending in three years.”

Volcker Rule Curbs on Banks Owning CDOs Eased in U.S.
“U.S. regulators granted banks an exemption from Volcker Rule limits for collateralized debt obligations composed mostly of small-bank securities, according to a statement from regulators.”

House Republicans voice support for $1.1 trillion spending bill
“(Reuters) – Republicans in the House of Representatives voiced tentative support on Tuesday for a $1.1 trillion spending bill, signaling likely passage and removing one source of potential drama ahead of the 2014 elections.”

3 key takeaways from JPMorgan earnings call
“JPMorgan Chase (JPM) released its fourth-quarter earnings this morning, and it fared pretty well considering the never-ending series of legal settlements it had to overcome.”

Mortgage apps up 11.9%
“Mortgage applications increased 11.9% from a week ago, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending Jan. 10, 2014.”

Fed’s Fisher says QE is ‘beer goggles’ for investors
“Dallas Federal Reserve Bank President Richard Fisher, always one for colorful speeches, said he is confident and certain that it’s time to come down from the $1 trillion a year money printing and bond buying.”

Congress takes a bite out of housing agency budgets
“A proposed $1 trillion congressional spending bill means less money for key housing agencies, analysts claim.”

JPMorgan With Wells Fargo Lose Share to Small Rivals: Mortgages
“The two largest U.S. home lenders are feeling the bite of competition from smaller firms as mortgage originations tumble at the fastest rate since 2011.”

REAL ESTATE: Up again, December home prices – by 28 percent
“Home sale prices across Southern California were poker-hot in December, the latest real estate information report from San Diego-based DataQuick suggests.”

The Market Is Rethinking That Disastrous Jobs Report
“Markets are already acting as if the bad jobs numbers released Friday may have been just noise, and that the economy is still doing fine. Already we’re seeing interest rates rise again, and other markets continue to bet that the Fed will move toward tightening.”

Do Real Estate Agents Practice What They Preach?
“Trulia’s Chief Economist Jed Kolko dives into Census data to reveal whether real estate agents walk the walk, or if they are all talk. Turns out, they do: their homeownership rate is high even after taking demographics into account. The same goes for appraisers, architects, and construction workers.”

Real Estate Matters | How to get your finances in home-buying shape
“Money makes the world go around. And every year we make resolutions to save more of it, invest it more profitably and spend more wisely.”

County new home prices hit record high
“The median price for newly built single-family homes and condos in San Diego County shot up to a record high in December, while the number of new homes sold hit a record low for a December.”

Posted on

Real Estate News 1.14.2014

9 ways real estate will change this year
“Each year, HSH.com details the important factors most likely to influence the mortgage and real estate markets in the coming year. While it seems we have made our way out of the turbulent times that have bounced the market around for the last few years, there is still plenty of uncertainty ahead.”

Minimum wage hike could mean a raise for all
“When New Jersey increased its minimum wage this year, Dolores Riley gave raises to all 16 employees at her childcare center. But it wasn’t because they were all making $7.25 an hour.”

Wells Fargo profit beats estimates; mortgage loans slump
“(Reuters) – Wells Fargo & Co (WFC.N) reported a better-than-expected 11 percent jump in fourth-quarter profit, though mortgage financing was at its slowest in five years, and the bank’s shares fell in morning trading.”

Lenders fear squeeze from mortgage rules
“Financial institutions are pressing Congress and federal regulators to scale back sweeping new mortgage rules for fear they could impede the housing market’s recovery.”

5 ways the jumbo mortgage market will change in 2014
” Big changes are coming to jumbo mortgages.

Wealthy home buyers signed up for these loans in droves last year because of their low rates and flexible repayment options. The total dollar amount of originated private jumbo mortgages—which exceed $417,000 in most parts of the country and $625,500 in pricey housing markets such as New York and San Francisco—was on track to be the highest since 2007.”

Friend or Foe? Mortgage Rules Show 2 Faces
“The home loan industry now has to adapt to new mortgage rules that offer borrowers much needed protection against lender abuses and reckless lending standards. But the changes may not please all borrowers.”

U.S. Posts Record December Surplus on Fannie Mae Payments
“The U.S. posted a record December budget surplus as higher payroll taxes, payments from Fannie Mae and Freddie Mac, and a declining unemployment rate helped improve the government’s finances.”

Credit standards going easy on jumbo mortgages
“Despite overall originations hitting the lowest level since 2010, the past year witnessed a significant increase in the volume of home equity loans and lines of credit, in addition to originating the best-performing mortgages on record, the first report from Black Knight Financial Services, previously known as Lender Processing Services, found. For jumbo mortgages, however, it’s a completely different story.”

Fannie Mae launches second risk-sharing transaction
“Fitch Ratings released a pre-sale report expecting to rate the risk-sharing portion of the Fannie Mae Connecticut Avenue Securities at triple-B.”

Investors in PennyMac gain larger stake
“A group of investors acquired enough of a stake in PennyMac Financial Services (PFSI) to prompt a series of new filings with the Securities and Exchange Commission.”

Slump in retail sales and more economic predictions coming this week
“The Commerce Department will release its retail sales report for December at 8:30 a.m. ET Tuesday, but early warning signs show that it’s likely to show a holiday slump.”

How bad will QM hurt homeowners and home buyers?
“The House Financial Services Committee will hold Tuesday morning the second in a series of meetings on the effects of the Consumer Financial Protection Board’s Qualified Mortgage rule, a rule that only went into effect two business days prior to the scheduled hearing.”

Report: Delinquencies Dip, Lines of Credit Rise
“Home equity loans and lines of credit are on the rise, as delinquencies continue to plummet across the nation, according to recent research from Black Knight Financial Services. The data and analytics division of the company—formerly the LPS data and analytics division—released its November Mortgage Monitor Report, which found that total delinquencies are at extremely low levels in every product category.”

Wells Fargo Economists’ Outlook at Odds with Recent Home Price Data
“What’s ahead for housing in 2014? The economics team at Wells Fargo Securities is forecasting a pull-back in investor activity, and with the fundamentals underlying housing demand, job and income growth, and household formations making only modest strides in a relatively thin market, they say to look for modest gains in home sales and residential construction with price appreciation decelerating back into the mid to low single digits.”

GSE Forecasts ‘Continued but Measured Housing Recovery’ in 2014
“Recent trends in new home sales suggest the housing sector will double its contributions to the country’s economic growth in 2014—though the outlook for existing-home sales isn’t as bright.”

The Bullish Economic Story May Be On The Verge Of A Change
“The 10-year Treasury yield closed Monday at 2.82%, below the 2.88% level where it closed on Dec. 18, when the Federal Reserve announced it would begin tapering down its quantitative easing program.”

These Skinny Micro Housing Designs Would Let You Live Between Buildings
“With more and more people choosing to live in cities, there is less and less affordable housing available, meaning that some municipalities are trying out things like micro-housing or relaxed zoning laws to meet up with the demand.”

Berkshire County real estate seller using drones
“RICHMOND, Mass. (AP) — A Berkshire County real estate company is using a new tool to market its high-end properties — aerial drones.”

From offices to shopping centers, commercial real estate in high demand
“Coming off one of the strongest years on record, Houston’s commercial real estate market is poised for more growth in 2014, industry experts said today.”

China to Establish System for Tracking Real Estate Ownership
“SHANGHAI—China plans to establish a national system for tracking real-estate ownership and sales transactions, a key step in its effort to tame a property sector that threatens to price many Chinese out of the housing market.”

Progress has been slow in cleaning up mortgage mess
“After multiple enforcement actions, lawsuits and multibillion-dollar settlements, state and federal regulators are making sluggish progress in their efforts to prod banks to help mortgage borrowers.”

Richmond seeks partners for plan to seize mortgages using eminent domain
“After months of trying, members of the Richmond City Council have been unable to muster the supermajority of votes they need to enact a controversial plan to use eminent domain to seize underwater mortgages and slash the amounts that borrowers owe.”

Posted on

Real Estate News 1.13.2014

Out-of-state investors zero in on Twin Cities real estate
“Out-of-state real estate investors from Malaysia to Miami are spending billions on Twin Cities apartment complexes and commercial buildings, including some of the most iconic office towers on the downtown Minneapolis skyline.”

Darden Split Plan May Hinder Real Estate Deal, Activist Says
“Darden Restaurants Inc. (DRI)’s plan to split off Red Lobster could prevent the company from unlocking the $4 billion of value trapped in its real estate holdings, according to Barington Capital Group LP.”

The American Real Estate Investors Academy Now Offers Unsecured Lines Of Credit
“The American Real Estate Investors Academy is working with Aurelian Capital to bring unsecured credit lines to real estate investors. Membership in the Academy is not required.”

10 tips for homebuyers and sellers in 2014
“Goodness, is it 2006 again? At the dawn of 2014, it feels like it.”

A watchdog grows up: The inside story of the Consumer Financial Protection Bureau
“In late 2011, a quiet revolution took place at the corner of 17th and G streets NW.

About 500 federal workers were vacating the drab, 1970s-era headquarters of the Office of Thrift Supervision. The agency had just been scrapped for its role in the financial crisis, which in retrospect seemed almost inevitable: Its primary mission had been to keep banks solvent, and its budget depended on how many of them chose it as their regulator, leading to almost criminal complacence.”

Rising community association fees are squeezing homeowners on tight budgets
“When Brenda Batts purchased her condominium near the U Street corridor in 2006, she was planning to retire at age 65. Now 62, Batts, an office manager, fears she may not meet that goal, thanks to a nagging worry from when she purchased the unit, which assesses a monthly fee for common charges on top of her mortgage and property taxes.”

As mortgage banking industry dwindles, bidding wars over quality housing become common
“This is generally a slow time of year in the residential housing market, but according to Re/Max broker Rosalie Daniels, of Hamilton, bidding wars over housing are increasingly common.”

America’s Big Bank Earnings Announcements Will Be Highlighted By Tumbling Revenue
“Three of the four biggest commercial banks in the US are expected to report falling revenue in the week ahead as loan activity falls.”

Two lawsuits that could harm RMBS investors
“Investors in residential mortgage-backed securities are far from out of the woods when it comes to resolving financial risk from RMBS investments.”

3 ways the coming rate hikes can sink the housing market
“With few exceptions most are projecting interest rates will be edging up over the next 12 months, as the Federal Reserve tapers off its four-year-plus policy of printing $1 trillion a year to buy MBS and Treasurys.”

A calm picture of the economy emerges, but will it last?
“After months of clouded economic data in the wake of financial and congressional uncertainty, the economy is expected to see clearer skies ahead, analysts claim in a new report.”

Total Mortgage Services doubles over next 5 years
“Connecticut Governor Dannel Malloy and the state Department of Economic and Community Development will provide Total Mortgage Services with a $3.5 million loan to help the company establish its national headquarters with a new facility in Milford.”

Freddie Mac: Short Sales More Attainable Than Homeowners Think
“When a homeowner is unable to make their mortgage payments or owes more on the home than it’s worth, a short sale can be a viable option that avoids the negative implications of a foreclosure for both the homeowner and the mortgage-holder.”

Treasury Releases November Making Home Affordable Report
“Nearly 23,000 permanent loan modifications were completed under the Home Affordable Modification Program (HAMP) in November, according to a new report from the U.S. Treasury.”

Unemployment Down: Is The Fed In Trouble?
“The latest news on the unemployment front is good for just about everyone: The  government says 203,000 jobs were added to the economy in November and that the unemployment rate is down from 7.0 percent to 6.7 percent.”

The bubble that is California: A flood of rentals in lower priced markets, inventory creeping back up, and investors appetites waning.
“California can be viewed as a microcosm of what is occurring across the United States.  Few markets are propped up by a smaller affluent population while most, are pushed outward or to rentals as incomes go stagnant.  People for the most part only pay attention to what is immediately around them.  When the crisis hit in 2007 many were caught off guard although the warning signs were all over the place.  As 2014 starts, we are now seeing a definite slowdown in housing even in higher priced areas.  Inventory appears to be coming back online but sales are very weak since people are asking for peak prices and drinking the housing Kool-Aid with gusto.  The median sales price in SoCal has stayed put since June but sales have fallen steadily.  Across the state, with more rentals from investors prices are soft and unlikely to rise given that many Californians have not seen any real income gains over the last decade.  For the most part, many are stuck in a bubble thinking things will remain the way they are simply by sheer momentum.”

2014: Private Forces Move to the Fore
“Waning Fiscal Drag and Easing Policy Concerns Expected to Boost Economic Growth this Year”

Posted on

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.”

Posted on

Real Estate News 1.8.2014

Why 2014 is the year to get out of debt

“When it comes to your personal finances, 2014 may be your best chance to take advantage of low interest rates and get out of debt — before it really starts costing you.”

Private sector adds more jobs than expected in December

“(Reuters) – U.S. private employers hired staff at the fastest pace in 13 months in December, data from a payrolls processor showed Wednesday, burnishing expectations that similar figures due later in the week from the government will confirm the U.S. economy was gathering steam at the end of last year.”

U.S. mortgage applications edge up in latest week: MBA

“(Reuters) – Applications for U.S. home mortgages edged higher in the latest week, rebounding from a 13-year low set at the end of last year, an industry group said on Wednesday.” New FHFA chief reverses course on

Fannie, Freddie loan-fee hikes

“(Reuters) – The U.S. regulator for Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) on Wednesday instructed the two taxpayer-owned mortgage finance companies to delay the increase in fees on government-backed loans that the agency announced last month.”

New regulator Watt signals shift in U.S. housing policy

“(Reuters) – Mel Watt, who was sworn in on Monday to head the agency that regulates mortgage finance firms Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), has signaled a new approach to U.S. housing policy that will put more of an emphasis on ensuring access to credit.”

Commercial Mortgage Lender Appetite Expected to Exceed that of Borrowers in 2014

“WASHINGTON, D.C. (January 8, 2014) — Commercial and multifamily mortgage lending is expected to increase in 2014, as lenders’ appetites to place new loans grow even stronger, according to a new Mortgage Bankers Association survey of the top commercial and multifamily mortgage origination firms.”

Mortgage Applications Increase in Latest MBA Weekly Survey

“WASHINGTON, D.C. (January 8, 2014) — Mortgage applications increased 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 3, 2014.”

Wells Fargo Creates SWAT Team to Keep Loans In-House: Mortgages

“Wells Fargo & Co. (WFC:US), the largest U.S. home lender, has assigned about 400 underwriters to originate mortgages for the bank to hold, with as many as 40 percent of those loans likely to fall outside government guidelines taking effect this week.”

New mortgage rules protect American dream: Column

“Let me tell you a common story I hear. It starts with a woman in 2005 or 2006 who took out a mortgage to buy her first home. After two years, her teaser interest rate expired. Her monthly payments doubled so she could no longer afford them.”

Investor & Lender Changes Continue; Freddie & Fannie: Golden Gooses?

“Teach your children about taxes: eat 30% of their ice cream.” They’ll also learn something about percentages. If 30% of cities have rebounded to pre-2007 levels, even I can deduce that 70% have not, but…is this late breaking news? “Higher mortgage rates, tight lending standards and price increases driven by a limited supply of homes for sale are discouraging some prospective buyers.” Apparently.”

Mortgage Grader lands patent for lender, broker compliance technology

“As lenders and brokers search for solutions to ensure they are not violating new lending rules due out this week, one company is building a compliance technology to keep the industry in check.”

Americans build larger, more costly homes

“Newly built single-family homes in the United States are getting bigger, costlier to build and more expensive, according to the National Association of Homebuilders. This news comes on the heels of news that home prices climbed 11.8% between November 2012 and November 2013.”

HEMET: Alleged squatter thwarts Christmas short sale

“When Scott and Tammy Laffin got a call from their real estate agent, they expected to hear the long-awaited news that their Hemet short sale home passed inspection from the buyer and would close escrow at Christmas.”

Odd-Ball Real Estate Play

“Equity investors typically play real estate through real estate investment trusts (REITs), which have done very well for quite a while – until recent Taper talk brought the prospect of rising interest rates into focus.”

The Benefits of Investing in Commercial Real Estate

“What little known investment should people be turning to more often?What little known investment should people be turning to more often?”

Real Estate Matters | What home sellers can expect in the market this year

“A year ago, we saw far fewer “For Sale” signs. And this year, there are even fewer.”

A Real Estate Revival?

“Real estate ranked as one of the worst-performing categories of 2013. In a year when the S&P 500 returned 32 percent, real estate funds gained 1.6 percent, according to Morningstar. Rising interest rates have contributed to the weak showing. Real estate and other dividend-rich sectors often sink when rates rise. Investors tend to sell dividend stocks and shift to fixed income as bond yields become more competitive.”

Real-Estate Tech Takes NYC

“For years, the commercial real-estate industry has lagged behind other industries when it comes come to embracing cutting edge Internet technology to provide old services in a new way.”

Burbank to Brookline Soar in Suburb Shift: Real Estate

“Clarion Partners LLC, a real estate owner overseeing almost $30 billion, made millions buying Manhattan office buildings and towers in Seattle and Houston after the U.S. property crash began six years ago. It’s now moving to the outskirts of big cities.”

Posted on

Real Estate News 1.6.2014

FHFA Recovers Nearly $8B from Banking Institutions in 2013
“As conservator of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency (FHFA), recovered nearly $8 billion on behalf of taxpayers in 2013 through settlements with financial institutions.”

Realtors’ Confidence in Market Tempered by Credit Access Concerns
“Realtors expressed overall confidence in the market tempered by concerns regarding credit availability, according to the latest Realtors Confidence Index from the National Association of Realtors (NAR).”

Homes’ Days-on-Market Remain Low in November
“Following a post-summer slowdown in the market, homebuyers across the nation put a little more force on the accelerator in November.”

Online Technology Likely to Play Larger Role in Mortgage Process
“A recently released borrower survey on shopping habits shows increasing reliance on online tools when mortgage shopping, though many still find the learning curve too steep.”

Is Real Estate Headed For A Fall?
“There are various people who think that both real estate and stocks are vastly overpriced. Last week, for example, the stock market closed with the S&P 500 over 1,800 for the first time while the Dow topped 16,000. How much higher can these measures go — or must they fall?”

As interest rates rise, hybrid mortgages may be a good option
“WASHINGTON — Higher mortgage rates for 2014? Count on it. Could this be the year to check out hybrid mortgages, which haven’t been popular lately? Maybe.”

Housing tear-downs on the rise as real estate rebounds
“The front-end loader swung to the right and took a bite out of the shingled roof of the quaint cottage. The roar of the engine and crackle of buckling lumber carried down Elm Avenue in Manhattan Beach.”

Home buyer bargains? Many markets are back to normal (VIDEO)
“Real estate expert Michael Corbett weighs in”

The Best Online Tools for Your Housing Search
“There was a time when the only way to find homes for sale was to engage a real estate agent to send you listings or drive up and down the streets scouting “for sale” signs.”

Mortgage Borrowers Use Technology to Advantage
“It’s been said that a little education goes a long way. The same can be said, apparently, for a little mortgage technology.”

Watt at FHFA Seen as Enigma in Fannie-Freddie Market: Mortgages
“Mel Watt’s first act overseeing Fannie Mae (FNMA:US) and Freddie Mac came before he officially started.”

New law Ability to Repay tightens mortgage regulations
“Mortgage lenders will soon have to work under stricter regulations after passage of the federal government’s Ability to Repay rule, designed to reign in loose lending standards that officials blame for contributing to the Great Recession.”

Economists Spar Over U.S. Recovery
“PHILADELPHIA—Economists John Taylor and Larry Summers exchanged pointed words Saturday about the best approach to spurring the economic recovery.”

Home Price Data Point to Moderation
“Clear Capital, Truckee, Calif., said the double-digit home price growth experienced over the past two years appears unsustainable going into 2014, as prices move into a “slow and steady” mode.”

What to watch out for in the 2014 MBS market
“The year ahead remains murky for investors even as the Qualified Mortgage (QM) rule takes effect and the Qualified Residential Mortgage (QRM) is hammered out, but there are signs of optimism for normalization.”

Housing analysts: Denver beats Phoenix in deadly animal cage match
“Clear Capital’s Home Data Index (HDI) market report confirms the consensus – home prices recovered strongly in 2013.”

When your Realtor goes mum…here’s why
“Questions Your Realtor Can’t Answer

You may be a single woman looking for a home and neighborhood where you can feel safe at night. Or a family with children who would like other kids to live nearby for easy play dates.”

Freddie Mac Announces First Multifamily K Certificates Offering This Year, K-714
“MCLEAN, VA–(Marketwired – Jan 6, 2014) – Freddie Mac (OTCQB: FMCC) today announced a new offering of Structured Pass-Through Certificates (“K Certificates”) backed exclusively by fixed-rate multifamily mortgages with a 7-year term. The company expects to offer approximately $1 billion in K Certificates (“K-714 Certificates”), which are expected to price the week of Jan. 6, 2014, and settle on or about Jan. 28, 2014. This is Freddie Mac’s first K Certificate offering this year.”

Move inland or leverage your life: The gentrification of the California middle class pushes many to use ARMs to leverage into homes they cannot afford.
“I am convinced that Californians enjoy having a sordid affair with real estate.  The amount of justifications that get thrown around during booms and busts would be enough to fill a diagnostic manual for any aspiring psychologist.  It is fairly well accepted that mortgage rates will only move in one direction from this point forward.  So why would anyone lock into an artificially low rate via an ARM that is set to adjust in a short timeframe?  Many Californians are opting for ARMs to compete with big money investors over the tiny crumbs of inventory out in the market.  After all, home prices will be up in 5, 7, or 10 years and by that time you’ll be playing the equity ladder game once again, right?  The usage of ARMs is surging for the non-investor share of buyers.  A big reason is that California is largely unaffordable for the masses.”

Posted on

Real Estate News 1.2.2014

Buy-and-rent investors get squeezed

“It’s getting harder to make a bundle buying up foreclosures and renting them out.”

Silicon Valley investor: Split California into 6 states

“Is the most populous American state too big for its own good?”

Market Analysts Expect Slowdown in Housing Recovery in 2014

“The housing market recovery is entering a new phase, according to the analysts at Capital Economics. They say the rapid bounce in home prices seen this year, which was driven by investors and tight supply conditions, will soon start to moderate, and the next stage of the recovery will be characterized by strengthening activity among owner-occupants and mortgage-dependent buyers, as well as a much more moderate pace of house price inflation.”

GSEs Reach Foreclosure Prevention Milestone

“As the year closes, the Federal Housing Finance Agency (FHFA) is celebrating a critical milestone.”

U.S. Consumer Confidence Bounces Back

“Consumer confidence saw a boost in December on heightened optimism for the job market, the Conference Board reported Tuesday.”

McLean Mortgage Introduces RateFlex Program

“In Virginia, McLean Mortgage Corporation announced the release of its RateFlex Program, a new concept designed to aid homeowners and prospective homebuyers in today’s volatile interest rate environment.”

U.S. factory, jobs data show underlying strength in economy

“(Reuters) – U.S. factory activity held near a 2-1/2-year high in December and the number of Americans filing new claims for jobless benefits fell again last week, suggesting the economy was poised for stronger growth in 2014.”

MBA Economic/Mortgage Finance Commentary: Fed Begins Taper; Weakness Persists in Housing

“Recent macroeconomic data paint a picture of a strengthening economy, strong enough that the Federal Reserve is willing to begin to ease its foot off of the gas pedal. However, recent housing market data is not nearly as strong; particularly purchase mortgage application volume which is running 10 percent behind last year’s pace.”

Adjustable-rate mortgages regain popularity as prices, rates rise

“When Michael Shuken recently bought his family’s first home, a four-bedroom in Mar Vista, his adjustable-rate mortgage helped them stay on the pricey Westside.”

Mortgage tax break expires despite bipartisan support in Congress

“WASHINGTON — A 6-year-old tax break for struggling homeowners who won reductions in their mortgages has expired, alarming housing advocates and lawmakers who said it still was needed despite the real estate market rebound.”