Posted on

Today’s Real Estate News 10.28.2013

Summary:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Posted on

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.”

Posted on

Today’s Real Estate News 10.24.2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Posted on

Today’s Real Estate News 10.22.2013

Summary: CNN Money reports that the unemployment rate has fallen yet hiring has slowed. Fortune explains how the jobs report won’t be accurate for the next few months. Reuters shares that U.S. construction spending is showing hopeful signs in a 4 ½ year high. Bloomberg reports that lenders are shrinking in the mortgage business, BofA is said to endure three more legal probes into its’ mortgage-bond sales and China’s real estate bubble is affecting Manhattan. CNBC explains how the JPMorgan deal could affect homebuyers in qualifying for a mortgage. The Motley Fool shares how the online real estate market has become a huge aspect of the business and Fox Business educates on why location is such an important role in real estate.

Unemployment falls but hiring slows

“The unemployment rate fell to its lowest level since November 2008, but the government’s latest jobs report still shows a muddled picture of the economy.”

Why the jobs report has become meaningless

“FORTUNE — Employers added 148,000 to their payrolls in September, about 20% less than economists expected and the third smallest monthly increase in the past year. But the unemployment rate dropped to 7.2%, which is the lowest level in nearly five years. And the number of people actively looking for work was up, meaning people are more optimistic about their prospects for finding work.”

U.S. construction spending approaches 4-1/2 year high

“(Reuters) – U.S. construction spending hit a near 4-1/2 year high in August, boosted by increases in both private and public outlays, a hopeful sign for third-quarter economic growth.”

Shrinking Lenders in Mortgage Hub Cut Into Recovery: Real Estate

“CashCall Inc., a lender run by racehorse aficionado Paul Reddam, is one of the mortgage industry’s biggest office tenants in Orange County, California. It’s about to get smaller.”

BofA Said to Face Three More Probes of Mortgage-Bond Sales

“Bank of America Corp., sued by U.S. attorneys in August over an $850 million mortgage bond, faces three more Justice Department civil probes over mortgage-backed securities, according to two people with direct knowledge of the situation.”

China’s Real Estate Bubble Hits Manhattan

“Fosun International Ltd., a Chinese conglomerate that invests in everything from steel to pharmaceuticals to Club Med, has agreed to buy the office tower at 1 Chase Manhattan Plaza from JPMorgan Chase & Co. for a whopping $725 million. This isn’t an isolated incident.”

Jumbo loan availability lifts Chicago housing

“In recent years, the inability to access higher-priced mortgages left many Chicago residents – especially those pursuing properties valued above the area’s conforming loan limit – without the option of moving up to newer, larger homes.”

FHA single-family mortgage guarantee program squeezes taxpayers

“The Federal Housing Administration’s single-family mortgage guarantee program moved dramatically from having a net savings to costing taxpayers money as higher-than-expected borrower defaults hit the firm.”

How the JPMorgan deal could curtail credit

“The Justice Department’s potential $13 billion settlement with JPMorgan may go a long way toward appeasing consumers’ anger at big banks for the financial crisis, but it probably won’t help those same consumers get a mortgage. In fact, it may make it harder.”

How to Play the Online Real Estate Market

“The Internet has become the first place to look for real estate. In 2007, more than 80% of home buyers actively used the Internet as part of their research process before buying real estate and before contacting an agent. This proportion keeps increasing, making online real estate a very attractive market. However, competition in this space is very fierce. Most real estate agents and companies have already built their own sites, and invest heavily in online marketing.”

Why Location Matters in Real Estate

“Ask just about any real estate agent to list the three most important things a property should have, and you’ll likely hear: “location, location, location.” That phrase has been in use at least since 1926, according to The New York Times, and is just as relevant now as it was then.”

Posted on

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.”

Posted on

Today’s Real Estate News 10.18.2013

Summary:
According to CNN Money, more budget cuts are on the horizon for the nation while the current $80 Billion budget cuts has already hurt the economy. Realtor shares an interesting fact in time for Halloween, most people are willing to purchase so-called haunted homes. LA Times reports that home prices & sales are cooling down in the Bay Area. Market Watch (Wall Street Journal) shows SunTrust Bank Inc.’s 3Q earnings have fallen 82% as a result of a settlement agreement. The Housing Wire reports that stocks are rising as a result of investor reaction to the “government deal,” JPMorgan Chase has donated $250 million in free & discounted homes across the nation & Vice President of Coastal States Mortgage Corp., Patrick Mansell, was sentenced to a 5 year prison term as a result of pleading guilty to “conspiracy to commit wire fraud” against Fannie Mae & Freddie Mac. According to Bloomberg, states are closing in on companies who are improperly labeling employees as contractors in order to evade employee taxes, overtime pay, insurance & pay fair wages to workers. CNBC reports that high-end flipping is increasing in popularity among investors & the Labor Department will be releasing the September jobs report this coming Tuesday. Time’s Business & Money section put out an article regarding the drag that student loans are on the economy.

Spending cuts are hurting economy
“If you thought this year’s cuts to preschoolers, senior meals and medical research were bad, get ready for more.”

Survey: Most People Open to Buying a Haunted House
“More than half of home buyers are open to buying a haunted house, according to realtor.com’s 2013 Haunted Housing Report. Also, 35 percent of the nearly 1,400 people who took the survey say they have lived in a haunted home.”

Bay Area home market cools, prices and sales fall
“Home prices and sales fell last month in the Bay Area as the tech-rich region mirrored a cooling trend elsewhere within the state.”

SunTrust Banks net down 82% on higher expenses
“SunTrust Banks Inc.’s STI +0.53% third-quarter earnings fell 82% as the regional bank posted higher expenses resulting from a recent settlement agreement.”

Housing stocks rise as investors react to government deal
“The HW 30 – a composite of housing and mortgage finance stocks – rose nearly 1% Thursday as the government reopened, allowing agencies like the Federal Housing Administration to return to the business of handling FHA loans.”

A Common Trait that Silicon Valley, Las Vegas, and New York all Share. Hint: It’s not the Weather
“On average, for every $1 billion increase in stock value of companies in a given area, the median sale price of nearby homes increases by $4,400. That doesn’t sound like much, until you consider an area like Silicon Valley, home to 45 publicly traded companies in this study, and about $1.1 trillion in valuation. When the aggregate stock value of these companies goes up, about three months later, home prices begin to rise at a corresponding rate. This means that an increase in stock value of just 1 percent for these Silicon Valley companies could lead to an increase of median sale price of more than $48,000.”

JPMorgan Chase donates $250 million free, discounted homes
“JPMorgan Chase (JPM) has donated or sold at a discount more than $250 million in corporate-owned homes to community associations, municipalities, veteran groups and nonprofit housing providers across the country.”

Mortgage executive gets five years for defrauding Fannie, Freddie
“A federal judge sentenced Patrick Mansell, 68, of Boca Raton, Fla., to five years in prison and three years subsequent supervised release after he pled guilty to conspiracy to commit wire fraud. His alleged violation occurred when Mansell took part in a scheme to defraud the government-sponsored enterprises, Fannie Mae and Freddie Mac.”

States Clamping Down on Workers Mislabeled as Contractors
“When construction slowed during the recession, some companies hired workers and wrongly designated them as independent contractors to avoid paying insurance, taxes, fair wages and overtime.”

Investors high on high-end house flips
“Rising home prices and short supply have investors setting their sights on a new real estate play.”

September jobs report coming on Tuesday
“The Labor Department said on Thursday that it would release its report on September employment on Tuesday, as it provided a fresh schedule for some economic data that had been postponed due to a partial government shutdown.”

Student Loans Are Becoming a Drag on the US Economy
“The housing recovery remains on track. But high levels of student debt threaten to hang over the residential real estate market for many years, acting as a drag on both household formation and higher prices.”

Posted on

Today’s Real Estate News 10.15.2013

Summary:

Today in real estate, the LA Times shows that Citigroup posts a $3.2-billion profit even with the mortgage decline in the market. The NY Times reports that while many want Jamie Dimon, JPMorgan Chase Chairman & Chief Executive, fired, investors, analysts, board members and regulators don’t want him fired.  Central banks are preparing for a U.S. Default, should it occur. The Wall Street Journal reports that home prices & home sales are now slowing down in the “Bust-and-Boom Markets.” Lawmakers are asking financial institutions to be cooperative with federal employees who have been furloughed due to the government shutdown. The Housingwire informs us that multifamily loans are hitting the market and that Citigroup is preparing for a “refi burnout.”

Citigroup posts $3.2-billion profit amid slump in mortgages, trading
“NEW YORK — Citigroup Inc.’s third-quarter earnings disappointed Wall Street analysts as the bank reported a sharp slowdown in mortgage and bond-trading revenue.”

The Bloodlust of Pundits Swirls Around Jamie Dimon
“Jamie Dimon should be fired.

That seems to be the conclusion of some in the pundit class about JPMorgan Chase’s chairman and chief executive. Writers, editors and bloggers have made it clear that they want his scalp: “NOW Are We Allowed Talk About Firing Jamie Dimon?” the Huffington Post blared after news that the bank set aside $23 billion to pay legal fees and fines last week. “I have trouble wrapping my head around the positive aspects of paying a multibillion-dollar fine,” an article on TheStreet.com said of the prospect of an $11 billion settlement with the Justice Department.”

Central Banks Gaming Out U.S. Default as Deadline Nears
“Central banks have begun making contingency plans on how they would keep financial markets working if the U.S. defaults on the world’s benchmark debt.”

Home Sales, Prices Slowing in Bust-and-Boom Markets
“The sharp home-price rally in some of the hardest-hit housing markets is likely to fade in the coming months amid a pullback in investor purchases and steady increases in the number of homes listed for sale.”

Lawmakers call for banks to rescue federal employees
“Lawmakers urged financial institutions to work proactively with borrowers facing financial distress because of the government shutdown. For three weeks, federal employees have been out of the job without pay.”

Performing multifamily loans hit the market
“A great deal of activity is surfacing in the multifamily sector in the form of nonperforming loan sales this week.”

Citigroup prepares for refi burnout
“As investors anticipate the release of Citigroup’s (C) third-quarter earnings, analysts are predicting declining mortgage lending activity for the bank.”

Posted on

Today’s Real Estate News 10.14.2013

Week 3: Small businesses reel from shutdown
“As the government shutdown moves into its third week, small businesses across the country are trying to figure out how — or if — they’ll be able make up the lost business.”

For sale by owner: Homeowners ditching brokers
“Bolstered by the housing recovery, a growing number of homeowners are going it alone when selling their homes hoping to save thousands of dollars in commissions.”

Homebuyers: To get the house, get there first
“Housing inventory is stiflingly tight in many locations, making it a challenge to find, much less land, your dream home.”

Shiller, two others win economics Nobel for ‘bubble’ warnings
“Robert Shiller, who became famous for calling the housing and Internet stock bubbles, was one of three Americans to win the Nobel in economics Monday.”

Saying goodbye to the California middle class. California least affordable state in the entire country as renting class expands.
“California for a generation has been a high cost of living state.  This is no surprising revelation.  Yet the tech boom in the 1990s set the state into a unique stratosphere of real estate.  Hundreds of thousands of jobs now depend on big tech companies including Facebook, Google, Apple, and other common names.  Changes like this have added to drive up in real estate values.  New data highlights that California’s metro areas are the least affordable for those looking to buy based on the families living in those areas.  Of course, investors are bringing outside money so that is one way to move around this new reality.  Unlike an Ohio or Nebraska, California real estate is global in nature.  The only problem today is the massive gap is pushing many middle class families out of reach from buying a piece of real estate.  It is becoming more challenging for families to purchase real estate in California and the data backs this up.”

14 American Housing Markets Drowning In Foreclosures
“One in every 998 U.S. homes received a foreclosure filing in the third quarter, according to the latest foreclosure data from RealtyTrac.”

US Default Seen Pushing Housing to the Brink
“Housing largely dodged a bullet on the government shut down that went into effect October 1, the pending default, however, is an entirely different matter. As the October 17 default deadline nears, knuckle in the housing industry are turning white.”

The 2 Families of Mortgage REITs
“Mortgage REITs are a very interesting sector, and although they only represent a small percentage of REITs, they’ve developed a very loyal following. Their increased use of leverage leads to very high yields that appeal to income seekers with a sizable appetite for risk. However, before jumping in to the sector, investors should realize that not all mortgage REITs are created equal. There are a wide variety of mortgage REITs, and the two major categories are separated by the types of mortgages the REITs invest in.”

J.P. Morgan Hiring for Compliance “SWAT Team”
“Facing a slew of costly regulatory issues, J.P. Morgan Chase & Co. is bringing in a SWAT team.”

Mortgage applications gain; buyers look past US shutdown
“Applications for U.S. home loans rose in the latest week as demand for refinancing outpaced purchases, data from an industry group showed on Wednesday.”

Posted on

Tony’s take on the Government Shutdown (VIDEO)

Tony catches up with us from Smith River and shares his opinion on two real estate news articles he read today. The first article headline read “Sold! Auction.com Looks to Revolutionize Selling Real Estate” put out by CommercialObserver.com and the second article, “U.S. Government Shutdown Threatening Housing Recovery” written by BusinessWeek.com.  Tony talks about how the government shutdown is affecting our office and how it directly affects those seeking loans.