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Real Estate News 1.20.2014

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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)”