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Real Estate News 2.27.14

Here’s where home prices are about to take off

“FORTUNE — “The time to buy is when there’s blood in the streets.” That quote, attributed to 18th-century financier Baron Rothschild, means that buying when everyone else is panicking is a great idea, as that’s when prices are at their lowest.”

It’s still a lot cheaper to buy than rentIt’s still a lot cheaper to buy than rent

“FORTUNE — Home prices have been rising steadily for more than year, with the most recent Case-Shiller index reading showing the biggest year-over-year increase in nearly a decade. But that doesn’t mean that it is a bad time to buy.”

Freddie Mac profit moves U.S. housing bailout further into black

“(Reuters) – Freddie Mac (FMCC.OB) said on Thursday it will soon send the U.S. Treasury a $10.4 billion dividend after posting a ninth straight quarterly profit, putting taxpayers further into the black on their bailout of the mortgage giant.”

Realtors® Oppose Tax Plan to Limit Mortgage Interest Deduction, Real Estate Provisions

“WASHINGTON (February 26, 2014) – The following is a statement by National Association of Realtors® President Steve Brown…”

Durable goods orders mixed, jobless claims rise

“(Reuters) – Orders for long-lasting U.S. manufactured goods excluding transportation unexpectedly rose last month as did a gauge of business spending plans, but that will probably not change views that factory activity is slowing.”

Foreclosures Climaxing in New York-New Jersey Market: Mortgages

“Feb. 26 (Bloomberg) — The epicenter of the U.S. foreclosure crisis is shifting to New Jersey and New York, threatening a housing rebound in one of the country’s most densely populated areas.”

Camp to Cap Mortgage Benefit While Ending State Tax Break

“A tax plan from House Ways and Means Committee Chairman Dave Camp would further limit the mortgage-interest break and end the deduction for state and local taxes, according to a nonpartisan congressional summary.”

BofA under probe over US housing program, forex

“Bank of America may have a new mortgage problem on its plate, saying on Tuesday that federal investigators are looking into whether the bank violated requirements of a U.S. government housing program.”

WellFargo cuts 700 mortgage jobs

“Wells Fargo & Co. said Wednesday that it is cutting 700 employees, including 203 in the Twin Cities, as demand for mortgages continues to shrink.”

Potential Conflicts Cited For Mortgage Servicer

“New York State’s top banking regulator said he had new concerns about Ocwen Financial, one of the nation’s largest mortgage servicing companies, creating another regulatory headache for the company.”

Senate committee advances repeal of mortgage registration fees

“A bill that would repeal mortgage registration fees moved forward from a Senate committee Wednesday.”

Morgan Stanley offers $275M to absolve bad mortgage bonds

“Morgan Stanley is finalizing a $275 million agreement with the U.S. Securities and Exchange Commission to settle the SEC probe into the bank’s toxic subprime mortgage bond trades going back to 2007.”

Bank earnings are booming, but there’s a big problem

“Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. posted the 17th quarterly increase since 2009 due to an $8.1 billion decline in loan-loss provisions in the fourth quarter of 2013.”

Federal judge sides with Fannie, Freddie shareholders

“Court of Federal Claims Judge Margaret Sweeney granted the Fairholme Funds motion for discovery against America.”

Institutional investor home buys hit 22-month low

“Institutional investor home sales continue to decline as a portion of all home sales, hitting a 22-month low.”

The key to successfully growing your mortgage lending operation

“The mortgage market is quickly drying up and lender competition is heightening in order attract the remaining drops of business thus making lender relationships more important than ever.”

4 game changers for selling homes this tax season

“New-homes sales reached a five-year high Wednesday morning, showing that buyers are still jumping into the market.”

Lansner: Time to sell real estate?

“If the local real estate market is taking a breather this winter after a fast rebound, should you be thinking of selling?”

Index: L.A.-O.C. home prices up 20.3%, but market is leveling off

“Home prices in the Los Angeles-Orange County area jumped 20.3 percent in December compared with a year earlier, the 18th consecutive month of annual gains, housing figures released Tuesday show.”

Los Angeles Real Estate Heats Up With Mogul Money

“Numbers don’t lie. Like box office grosses, home sales reflect economic reality. Per real estate news firm Data Quick, year-over-year residential real estate sales prices are up 18.4% across the Los Angeles area in early 2014 and the inventory of homes and condos for sale remains low. At the upscale end of the market, often in those Los Angeles neighborhoods favored by showbizzers, demand is the strongest, resulting in multiple offers over asking price for contempo properties and select empty lots.’

HUD AND CENSUS BUREAU REPORT NEW RESIDENTIAL SALES IN JANUARY

“WASHINGTON – Sales of new single-family houses in January 2014 were at a seasonally adjusted annual rate of 468,000, according to estimates released jointly today by the U.S. Department of Housing and Urban Development and the Census Bureau.”

The myth of real estate and economic mobility: Americans face lowest geographic mobility in over two generations. Is staying put the new American Dream?

“Americans like to believe that they are movers and shakers and will follow the opportunity wherever it may be. The idea of selling your home and moving across the country for a great new job opportunity seems to be a common notion of how things happen. However the data shows us a very different reality. Americans are largely staying put. We can blame this on negative equity but this trend actually goes back to the 1980s. In fact, American mobility is at all-time record lows. What this means is people are staying put like our golden handcuffed baby boomers. I was thinking about this carefully and I think one major reason for this is the massive subsidies given to homebuyers creates incentives for staying put. Think of California with Prop 13 and the ability to write-off many housing items including interest when being a homeowner. The system is setup to keep people locked in. For a young person in a high cost of living area the best economic option may be to move and start in another state. However the facts point to a very different picture.”

Freddie Mac Prices $1 Billion Reopening of .875% Three-Year Reference Notes® Security

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it auctioned a $1 billion reopening of its .875% three-year USD Reference Notes® security that matures on February 22, 2017. The stop yield for the issue, CUSIP 3137EADT3, was .724%, priced at 100.442508. The bid-to-cover ratio was 4.8 to 1.”

Fixed Mortgage Rates Continue Gradual Climb Higher

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates mixed with the fixed-rate products moving higher for the fourth consecutive week, while adjustable rate mortgages eased.”

Freddie Mac Announces $1 Billion Reopening of .875% Three-Year Reference Notes® Security

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it plans to launch a $1 billion reopening of its .875% three-year USD Reference Notes® security that matures on February 22, 2017. The issue will price today, Thursday, February 27, 2014, and will settle on Monday, March 3, 2014.”

Freddie Mac Reports Fourth Quarter and Full-Year 2013 Financial Results

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) today reported its fourth quarter and full-year 2013 financial results and filed its annual Form 10-K with the U.S. Securities and Exchange Commission.”

CFPB Director Calls for Increased Financial Literacy

“For Richard Cordray, the equation is simple: In the Land of the Free and the home of the free market, American citizens should be as informed about and capable of self-governance in their personal finances as they are in the democratic process, especially when it comes to borrowing for a mortgage.”

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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.'”

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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.”

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Today’s Real Estate News 11.26.2013

GSEs Update Short Sale Policies

“Fannie Mae and Freddie Mac announced changes to their Servicing Guides Monday aimed at helping more borrowers avoid foreclosure through short sales and deeds-in-lieu of foreclosure (DILs).”

Report: October Cool Down in Temperature Only

“Cooler temperatures didn’t necessarily mean a cool down in October activity, according to recent data. Despite a seasonal slowdown in activity, the housing market continued to post some positive metrics in October, reports the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, which aggregates approximately 2,000 real estate agents nationwide each month and provides up-to-date intelligence on home sales and mortgage usage patterns.”

Negative Equity: A New Way of Life in the Recovery

“Fast-paced price increases have helped bring many underwater homeowners afloat. In the third quarter, 1.4 million homeowners rose to the surface as their home values once again outranked their equity, according to the Zillow Negative Equity Report released Thursday.”

Pending Sales Slip to Lowest Reading in Nearly a Year

“Pending home sales slipped a bit further in October, reflecting an overall declining trend amid mixed regional numbers.”

Top 25 Hipster Zips for Returns on Rental Properties

“While the precise definition of hipsters is elusive — which is likely just how they want it — there’s no doubt the culture surrounding the hipster lifestyle has a major impact on local real estate markets, and mostly in a positive way.”

Signs Point to Economic Volatility in the Near Term

“WASHINGTON, DC – The temporary government shutdown and debt ceiling negotiations dealt a blow to consumers in October, and foreshadows likely continued market volatility during the next few months, according to Fannie Mae’s (FNMA/OTC) Economic & Strategic Research Group. In line with previous forecasts, the Group expects modest economic growth of approximately 2.0 percent for 2013 as a number of unresolved fiscal and monetary policy decisions weigh on consumer confidence. Factors including the appointment of a new Federal Reserve chair in January and the budget and debt ceiling issues that will remain until the first few months of next year are expected to suppress consumer spending – a key driver of economic growth. However, growth still is expected to pick up to 2.5 percent for 2014 once the fiscal drags wane and as labor market conditions improve further.”

Freddie Mac Multifamily Prices 19th Securities Offering This Year, K-035

“MCLEAN, VA–(Marketwired – Nov 25, 2013) – Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (“K Certificates”), which are multifamily mortgage-backed securities. The approximately $1.3 billion issuance of K Certificates (“K-035 Certificates”) is expected to settle on or about December 5, 2013.”

Home prices rise 11%

“Home prices continued to climb in third quarter, rising 11% from a year earlier.”

Realtors® Applaud DeMarco for Heeding Warnings, Leaving GSE Loan Limits As Is

“WASHINGTON (November 26, 2013) – The following is a statement by National Association of Realtors® President Steve Brown: “Realtors® welcome today’s announcement from the Federal Housing Finance Agency that the current limits on conforming loans will remain in effect until further notice. As the leading voice for homeownership, NAR opposes lowering the ceiling on loans eligible for backing by the government-sponsored enterprises. Lower loan limits would increase costs for consumers and reduce their access to conventional mortgages.”

Insight: A new wave of U.S. mortgage trouble threatens

“(Reuters) – U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country’s biggest banks.”

U.S. residential building permits reach 1 million, a 5-year high

“The number of U.S. residential building permits issued in October surpassed 1 million, the highest level in five years, the Commerce Department reported Tuesday.”

FDIC reports positive trend in loan balances, failed banks

“The bad news about banks in the third quarter is that their net income declined 3.9% from the same quarter last year, according to the latest Quarterly Banking Profile released today from the Federal Deposit Insurance Corporation (FDIC).”

Colony American Homes to launch rental securitization

“Securitization deals backed by rental income continue to attract market interest as more families turn to rentals over homeownership amid tighter lending standards.”

FHA mortgage loans no longer best option after rule change

“The most popular type of mortgage for buyers with low down payments keeps getting pricier and less appealing as more buyers question whether it’s still worth getting an FHA loan.”

Wells Fargo’s Lofrano Was ‘Critical’ to Fraud, U.S. Says

“Wells Fargo & Co. (WFC) Vice President Kurt Lofrano played a “critical role” in helping the bank hide fraudulent home loans that cost the U.S. $189 million, the U.S. government claimed in a filing in Manhattan federal court.”

Some call on city to explore eminent domain to combat blight

“A California city’s controversial plan to use eminent domain to help its residents burdened with mortgages worth more than their homes has caught the eye of some Baltimore leaders, who say the city might benefit from the program.”

What Have Mortgage Settlements Done For Homeowners Lately?

“This week, JPMorgan Chase agreed to a $13 billion settlement with the Justice Department over the sale of faulty mortgage securities that led to the financial crisis. It’s the largest settlement with a single company in U.S. history.”

Chinese buying up California housing

“At a brand new housing development in Irvine, Calif., some of America’s largest home builders are back at work after a crippling housing crash. Lennar, Pulte, K Hovnanian, Ryland to name a few. It’s a rebirth for U.S. construction, while the customers are largely Chinese.”

3 Mortgage Stocks to Buy Now

“This week, three mortgage stocks are improving their overall rating on Portfolio Grader. Each of these rates an “A” (“strong buy”) or “B” overall (“buy”).”

Housing inventory disappears in California for the fall: Number of homes for sale reverses steady increase from February lows. Where did the housing inventory go?

“For most of the year, housing inventory was steadily increasing across the nation. In California, it appeared that inventory hit a bottom in February of this year. At that point, there were 109,000 homes available for sale. The latest figures going out to October showed 127,000 homes available for sale and this was down from 134,000 reached in August. There has also been a steady decline of homes available for rent. The cash investor crowd is still out buying in large numbers. The drop in inventory is typical for the fall and winter selling seasons in normal markets. However this drop in inventory is likely being brought on by other factors including the jump in interest rates and also, the perception that the market may be softening. The number of listings with price cuts was 17 percent earlier this year. Today it is up to 28 percent. Where did the inventory go?”

Troubled hedge fund sitting on real estate gold

“Hedge fund manager Steve Cohen has at least one easy way to make up some of the $1.2 billion he recently agreed to pay the government: Cash in on SAC Capital Advisors’ sprawling real estate holdings that stretch across three continents.”

Chinese real estate influence extends to the Big Apple

“Chinese buyers are fast becoming players in the cutthroat world of Manhattan real estate, and that keeps high-end real estate broker Dolly Lenz busy.”

What Homebuyers Can Be Thankful for in 2013

“Homebuyers have had it tough lately, suddenly finding themselves in a sellers market as summer came along. And mortgages suddenly cost more too — when you could even get one. But of course Thanksgiving isn’t about looking at negatives. So, if you can, look past that elephant-in-the-room that is the credit crunch and take stock of what’s now on the table for those homebuyers with the capital.”

Why Is High-End Real Estate So Hot Right Now? (VIDEO)

“Nov. 25 (Bloomberg) — Ziel Feldman, founder of HFZ Capital Group, and Kevin Maloney, co-founder of Property Markets Group, discuss luxury property market trends with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)”

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Today’s Real Estate News 11.6.2013

Home prices show smallest gain since January
“September home prices showed the smallest monthly increase since January, according to real estate data firm CoreLogic.”

Freddie Mac Prices Transaction to Share Residential Mortgage Credit Risk With Private Investors
“MCLEAN, VA–(Marketwired – Nov 5, 2013) – Freddie Mac (OTCQB: FMCC) today priced a $630 million offering of the Freddie Mac Structured Agency Credit Risk (STACR®) debt notes. This offering represents the company’s second STACR offering in which private sources, and not taxpayers, predominately take the credit risk.”

Freddie Mac Receives CMBS Master and Special Servicer Ratings From Fitch
“MCLEAN, VA–(Marketwired – Nov 5, 2013) – Fitch Ratings today gave Freddie Mac (OTCQB: FMCC) Multifamily an initial commercial mortgage-backed securities (CMBS) master servicer rating of CMS2 and affirmed the existing special servicer rating of CSS2-. The CMS2 rating is the highest initial rating ever assigned by Fitch for a master servicer.”

Does Q3 Uptick in Homeownership Reveal Good News or False Hope?
“The Census Bureau’s announcement Tuesday that the national homeownership rate ticked up slightly in the third quarter of this year has some analysts wondering if this is a turning point for homeownership and others labeling slow household formation as a persistent hindrance to a full housing market recovery.”

September Bucks Forebodings of Decelerating Price Gains
“With recent predictions forecasting a falloff in home price increases over the next year, gains nevertheless continued at a strong pace in September, CoreLogic reported Tuesday in its monthly Home Price Index (HPI) report.”

Housing Market Recovery Rate Indicates Less Volatility than Ever
“Renewed profitability in the real estate market lacks the troublesome “irrational exuberance” that caused problems in the past, according to Wade Micoley, president and CEO of WM Enterprises, Inc., and the online auction house Micoley.com.”

Fannie Mae’s Portfolio Continues to Shrink
“Fannie Mae has released its September book of business, revealing further declines as new business acquisitions came to their lowest level in more than a year.

The mortgage behemoth’s book of business totaled $3.163 trillion as of the end of September, shrinking at a compound annual rate of 1.3 percent.”

FHFA Prohibits Servicer Reimbursement
“The Federal Housing Finance Agency (FHFA) announced Tuesday that it has directed the GSEs to prohibit servicers from being reimbursed for expenses associated with captive reinsurance arrangements. The announcement follows a notice that FHFA published in the Federal Register last March regarding its views on these lender-placed insurance practices and accepting public input. The notice also cited concerns that the practices expose Fannie Mae and Freddie Mac to potential losses as well as litigation and reputation risks.”

Rich investors sitting on a pile of cash
“Some of the richest people around the world think the stock market will continue to go up. So why are they sitting on a big pile of cash?”

Most Metro Areas Show Strong Annual Home-Price Growth
“WASHINGTON (Nov. 6, 2013) – The majority of metropolitan areas in the third quarter experienced robust year-over-year price gains, with the national median price showing the strongest annual growth in nearly eight years, according to the latest quarterly report by the National Association of Realtors®.”

Exclusive: EU to levy record fines on Libor banks: source
“(Reuters) – EU antitrust regulators will levy a record fine of at least 1.5 billion euros on six financial institutions, including Barclays (BARC.L) and Royal Bank of Scotland (RBS.L), for rigging the yen Libor interest rate benchmark, a banking industry source said on Wednesday.”

MBA’s Cosgrove Testifies on Housing Finance Reform
“WASHINGTON, D.C. (November 5, 2013) – Bill Cosgrove, CEO of Union Home Mortgage Corp. and Chairman-Elect of the Mortgage Bankers Association (MBA), testified today before the U.S. Senate Committee on Banking, Housing and Urban Affairs at a hearing titled, ‘Housing Finance Reform: Protecting Small Lenders Access to the Secondary Market.'”

Ally Profit Drops as Lender Absorbs Cost of Mortgage Accord (3)
“Ally Financial Inc. (ALLY:US), the auto finance firm majority-owned by U.S. taxpayers, said third-quarter profit fell 76 percent as the company settled U.S. claims for soured mortgages and stopped making new home loans.”

Bernanke Giving Homebuyers Second Chance With Pledge: Mortgages
“This was supposed to be the year that Herb Harrison found a newer, bigger home to replace his current house in Framingham, Massachusetts. Then, in May, mortgage rates began to rise and he put his hunt on hold.”

Fannie, Freddie Ordered to End Reimbursements for Force-Placed Insurance
“The Federal Housing Finance Agency told Fannie Mae and Freddie Mac to end reimbursements to mortgage servicers for expenses related to captive reinsurance arrangements.”

As US Economy Plods and Pay Lags, Companies Profit
” Look at the U.S. economy and you’ll notice an unusual disconnect.

The economy is being slowed by a tight job market, scant pay raises and weak business investment. Yet corporate profits are reaching record highs and fueling record stock prices.”

US planned layoffs rise in October: Challenger report
“The number of planned layoffs at U.S. firms rose 13.5 percent in October on cuts in the pharmaceutical and financial sectors, a report on Wednesday showed.”

Regions Discloses HUD Subpoena Related to Mortgages
“Regions Financial Corp. (RF), Alabama’s biggest bank, received a subpoena from the U.S. Department of Housing and Urban Development tied to the origination of mortgages backed by the Federal Housing Administration.”

Two heavyweight Fed papers argue for stronger policy action
“Nov 5 (Reuters) – Two of the Federal Reserve’s top staff economists make the case in new research papers for more aggressive action by the U.S. central bank to drive down unemployment by promising to hold interest rates lower for longer.”

BofA CEO: Housing Market ‘Fairly Stable’
“Bank of America Corp.BAC +0.22% Chief Executive Brian Moynihan said the U.S. housing market is “fairly stable” at a Wall Street Journal event in New York Wednesday.”

CORONA: Realtors’ home, a decoy for Nigerian rental scam
“Rental scams are mounting in the Inland region, as Heather Stevenson, a real estate broker and team leader for Prudential California Realty, can attest.”

How Federal Reserve and banking policy is accelerating income disparity: Financial obligations ratio soars for renters while declining for homeowners. Problem is, we have less homeowners.
“Current housing policy has been a major windfall for large institutions and investors.  Banks enjoyed a continuous stream of good years as rates slowly dragged down and people became serial refinancers.  Good way for banks to earn fees courtesy of the Fed’s QE maneuvering.  However the results have been negative for the large number of working and middle class Americans.  Many of you have encountered investors bidding prices up on properties here in your own backyard but this trend is nationwide.  In some areas the bidding has been more aggressive (i.e., San Francisco) but overall, the nation has seen a big jump in home values.  However new data continues to highlight how this current policy is really benefitting a small group of Americans.  While rental vacancy rates reach decade lows, homeownership rates are also reaching multi-decade lows.  Not hard to do when a large portion of the market is coming from the investor crowd.”

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Today’s Real Estate News 11.4.2013

Free FICO credit scores coming to millions

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

Home Buyers and Sellers Survey Shows Lingering Impact of Tight Credit

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

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

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

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

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

Is the ‘End of the Suburbs’ Near?

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

International Architects and Designers in New York

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

Report: New Wave of Delinquencies from ARM Resets Unlikely

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

What Does Fannie Mae’s New LTV Threshold Accomplish?

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

Georgia Real Estate Investor Nabbed for Fraud

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

Half of Consumers Fear Another Housing Bubble Is Forming

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

Maxine Waters places housing reform on chopping block

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

Two Harbors enters flow sales agreement for MSR portfolio

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

FHA policy transparency fuels Ginnie Mae modernization

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

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

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

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

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

Las Vegas September home sales buoyed by move-up buyers

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

Future secondary market remains a challenge

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

Bank of America wins dismissal of lawsuit on AIG disclosures

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

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

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

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

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

Financial firms cutting thousands of jobs

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

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

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

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

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

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

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

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

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

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Today’s Real Estate News 10.29.2013

Summary:

Today, DS News reports about how much real estate us investors have purchased since 2011. Realtytrac shares the opinions on leading brokers regarding the QRM proposal and how the foreclosure rate has been increasing in New York City and Long Island since Hurricane Sandy. According to CNN  Money, home prices are still increasing. Realtor.org shows their approval in delaying flood insurance increases. The MBAA’s president & CEO stresses a housing policy balance.  According to the Housing Wire, Hensarling is pointing the finger at Dodd-Frank for the mortgage market’s “volatility,” the Special Inspector General for TARP outlines the failures of the “Hardest Hit Fund,” the underdogs of mortgage servicing are forecasted to rule the mortgage market according to mortgage servicing experts, mortgage originations are most likely to decrease and the FHFA states that mortgage rates are to continue to climb. Bloomberg reports that consumer confidence has decreased the most since August 2011 and BofA could be forced to pay somewhere between $5-8 BILLION to settle federal claims while it’s Countrywide unit and investors in mortgage-backed securities are expected to ask a federal judge to overrule FDIC’s objections and settle for $500 Million.

Investors’ Home Purchases Total $1 Trillion Since 2011
“Since 2011, investors have purchased more than 950,000 homes; and with 370,000 purchases so far this year, they have already surpassed the number of purchases they made in either of the past two years, according to a new report from RealtyTrac.”

Leading Brokers Weigh in on Impact of New QRM Proposal, Reveling Concerns Over Mortgage Rules Taking Effect in 2014
“RealtyTrac® (www.realtytrac.com), the leading online marketplace for comprehensive housing and real estate data, today released opinions from five leading real estate brokers across the country on the impact to the real estate market and mortgage industry posed by the newly proposed Qualified Residential Mortgage (QRM) rules set to take effect in January as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in 2010.”

New York City and Long Island Foreclosures Continue to Increase a Year After Hurricane Sandy Hit
“One year after Hurricane Sandy made landfall on the U.S. eastern seaboard, RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today reported that foreclosure activity in the first nine months of 2013 is up 33 percent compared to the first nine months of 2012 in the 7-county region including the five boroughs of New York and Long Island.”

Home prices continue to climb
“Home prices posted the largest annual gain since housing bubble days in August, although the month-over-month gain slowed for the fourth straight month.”

Realtors® Applaud Bipartisan Legislation to Delay Flood Insurance Rate Increases
“The following is a statement by National Association of Realtors® President Gary Thomas:

“The bipartisan ‘Homeowner Flood Insurance Affordability Act’ introduced today in the Senate by Sens. Robert Mendendez, D-N.J.; Johnny Isakson, R-Ga.; and Mary Landrieu, D-La., and in the House by Reps. Michael Grimm, R-N.Y., and Maxine Waters, D-Calif., will help millions of homeowners who are facing sudden and extreme increases in flood insurance premiums, which are an unintended consequence of legislation to reform the National Flood Insurance Program.”

Stevens Calls for a Constructive Balance in Housing Policy
“Washington, DC (October 28, 2013) — David H. Stevens, President & CEO of the Mortgage Bankers Association (MBA) today delivered the following remarks at the association’s 100th Annual Convention and Expo in Washington, DC.”

Hensarling blames Dodd-Frank for mortgage market volatility
“Rep. Jeb Hensarling, R-TX, received thousands of cheers from attendees during the Mortgage Banker’s Association 100th Annual Convention and Expo Tuesday as he painted the Dodd-Frank Act as the real threat to mortgage finance reform.”

SIGTARP details Hardest Hit Fund failures
“The Hardest Hit Fund, which was launched by the Treasury to help families in areas stricken by the housing bust, fell short of its stated goals, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) warns.”

Smaller competitors may dominate servicing in the near future
“Mortgage servicing experts foresee a future market dominated by specialists such as Ocwen Financial (OCN) and Nationstar Mortgage Holdings (NSM), while big, traditional banks head for the hills when it comes to servicing to escape litigation and costs.”

Mortgage originations expected to fall 32% in 2014
“Mortgage originations are estimated to reach a total value of $1.2 trillion in 2014, a 32% drop from 2013 levels, the Mortgage Bankers Association said Tuesday.”

FHFA: Mortgage rates continue to climb
“Mortgage interest rates continued their upward climb, with contract mortgage interest rates increasing 0.11% from August to September, according to the Federal Housing Finance Agency’s index of new mortgage contracts.”

Consumer Confidence in U.S. Slumps by Most Since August 2011
“Confidence among U.S. consumers declined in October by the most since August 2011 as the budget impasse and debt-ceiling negotiations in Washington took a toll on outlooks.”

BofA Accord With FHFA Could Cost $8 Billion, Fitch Says
“Bank of America Corp., the second-biggest U.S. lender, may have to pay $5 billion to $8 billion to settle federal claims tied to faulty mortgages after a rival lender’s deal set “a relatively high bar,” Fitch Ratings said.”

Countrywide, Investors Seek Approval of $500 Million Pact
“Bank of America Corp.’s Countrywide unit and investors in its devalued residential mortgage-backed securities will ask a federal judge to overrule objections from the Federal Deposit Insurance Corp. and approve a $500 million class-action settlement.”