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Real Estate News 2.20.14

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Today’s Real Estate News 10.16.2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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.”