Tag: shutdown

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.”