Posted on

Real Estate News 2.25.14

Home prices rose 11.3% in 2013
“U.S. home prices rebounded strongly in 2013, up 11.3% compared with a year earlier, according to a closely watched index.”

‘Window closing’ for housing-reform bill this year, mortgage bankers group chief says
“Time is running short for a housing-reform bill this year, the head of the Mortgage Bankers Association said Monday, adding the Senate only has about a month to act on legislation.”

SunTrust says could face “substantial penalties” in mortgage probe
“Feb 25 (Reuters) – SunTrust Banks Inc said it may attract “substantial penalties” from on an ongoing mortgage-related probe and also disclosed a new investigation by the Department of Justice, according to a regulatory filing late Monday.”

Sub-prise! Mortgages get looser despite tighter regulations
“Concerns that potential mortgage borrowers would be pushed out of the housing market due to new lending regulations and standards are unfounded, according to the latest housing risk briefing from the American Enterprise Institute’s International Center on Housing Risk.”

Investors Hoping Fed’s Punch Bowl Will Stay Longer: BofA
“Bank of America Merrill Lynch has an alternate explanation for today’s stock-market climb back to record highs: hopes of more easy money.”

Community banks drowning in regulations
“Community bank officials are struggling to keep up with mounds of government regulations that went into effect last year and will continue to affect business through 2014 and beyond.”

Americans Still Angry at Banks But Not Likely to Switch: Survey
“Even though nearly eight in 10 Americans feel the nation’s big banks are to blame for the financial crisis of 2008, most would not switch to a credit union or community bank.”

Yellen Seeking New Low-Rate Guidance Can Use Forecasts
“As Janet Yellen seeks to forge a consensus on a new strategy for communicating the Federal Reserve’s intention to keep rates low, she can reach for a six-year-old tool: the Fed’s quarterly forecasts.”

Realogy Holdings closes 2013 with strong earnings
“Realogy Holdings (RLGY), a provider of real estate services based in Madison, N.J., recorded net revenue for the full year 2013 increase 13%, to $5.3 billion, compared to 2012, and a basic earnings per share of $3.01 for the full year.’

You won’t believe what Fannie, Freddie are doing to sell REO
“Fannie Mae and Freddie Mac are offering limited-time incentives in a pair of programs for both real estate agents and homebuyers as the two government-sponsored enterprises are trying to sell some of their REO properties.’

Stonegate Mortgage originations increase 152%
“Stonegate Mortgage Corporation (SGM) recorded a successful fourth quarter and full year due to several strategic acquisitions that helped boost and round out the company’s profit.”

Here are 6 threats to Fifth Third’s mortgage banking operations
“At Fifth Third (FITB), mortgage banking net revenue decreased $145 million for the year ended December 31, 2013, compared to the prior year.”

Why are there more buyers but fewer sales in Phoenix?
“The latest issue of The Wilcox Report to clients shows that there are four reasons the pool of buyers in the Greater Phoenix area is growing, and yet at the same time there are three reasons there has been a slowdown in home sales.”

Prospect Mortgage refunds California homeowners
“Prospect Mortgage reached an agreement with the California Department of Business Oversight, which included refunds to more than 12,000 Californians totaling approximately $1.33 million.”

3 Secrets to Investing in Real Estate
“First, let me tell you a small secret of my own. I expected to write this article in no time flat, highlighting an international real estate investment trust that I’ve owned for many years. I was wrong.”

Freddie Mac Issues Monthly Volume Summary for January 2014
“MCLEAN, VA–(Marketwired – Feb 25, 2014) – Freddie Mac (OTCQB: FMCC) today issued the company’s Monthly Volume Summary for January 2014.”

Posted on

Today’s Real Estate News 11.01.2013

The Amenities Trending Up (and Down) in Luxury Homes
“Views, windows and outdoor spaces are some of the most in-vogue amenities in luxury homes, according to an analysis of listing descriptions by real-estate website Trulia.”

The ‘Texa-fication’ of America
“In 1981 a book titled The Nine Nations of  North America, written by Joel Garreau, suggested that North America could be divided into nine nations, which have distinct economic and cultural  features. Arguing that national and state borders are largely artificial and irrelevant, Garreau’s nine “nations” — including Ecotopia, MexAmerica, Breadbasket, Dixie, The Foundry, New England, Quebec, The Empty Quarter and The Islands — provides a more accurate way of understanding North America.”

HAMP’s Redefault Rate at 27% and Likely to Rise
“Over the life of the government’s Home Affordable Modification Program (HAMP), 1.25 million homeowners have received permanent HAMP modifications, and 27 percent of those have later redefaulted on their loans, according to a quarterly report to Congress from the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).”

FHFA Still Piloted by ‘Acting’ Head as Watts Vote Blocked
“Senate Republicans blocked a vote on the nomination of Rep. Mel Watt (D-North Carolina) to head up the Federal Housing Finance Agency (FHFA).”

Use your home to boost retirement savings
“Do you dream of leaving full-time work behind at 60, or even sooner? In MONEY’s 2014 Retirement Guide, you’ll learn the five essential rules for pulling off early retirement — rules built on tough lessons from recent years and new thinking about investing.”

MBA’s Stevens Testifies on Housing Finance Reform
“David H. Stevens, president and CEO 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: Essential Elements of a Government Guarantee for Mortgage-Backed Securities.'”

Starwood Property Trust spins off new public REIT
“Real estate investment fund Starwood Property Trust (STWD) plans to spin off its single-family residential business, forming a new REIT called Starwood Waypoint Residential Trust.”

SunTrust Mortgage is exiting broker lending
“The changing mortgage landscape continues to impact large banks and lenders, with SunTrust Mortgage (STI) announcing plans to exit broker lending, effective Dec. 31, 2013.”

Fitch will rate second Freddie Mac risk-sharing deal
“As promised, Freddie Mac is coming to market with another risk-sharing deal, thereby shifting some of the product into the private market. Freddie said it will likely get this deal rated, and it looks like they will, via Fitch Ratings.”

Homebuilders drive into peak season
“Homebuilders are driving into their peak season, with more than 75% of annual homebuilder returns historically generated in the November-to-January timefame, Keefe, Bruyette & Woods noted in its latest report.”

REO-to-Rental securitization gets sterling Triple-A rating
“Moody’s Investors Service (MCO) provided a credit analysis for Invitation Homes 2013-SFR1, an REO-to-Rental securitization, awarding $278.7 million in triple-A ratings, in what is by far the largest tranche in the deal.”

Homebuilders to Rally as Bet on Taper Premature: EcoPulse
“Shares of U.S. homebuilding companies have fallen more than 20 percent since May, even as home-improvement retailers rose to a record high, a sign some investors are too pessimistic that higher mortgage rates could derail new construction.”

Wells Fargo Said to Settle FHFA Claims for Less Than $1 Billion
“Wells Fargo & Co. (WFC) agreed to pay less than $1 billion to settle Federal Housing Finance Agency claims it sold faulty mortgage bonds to Fannie Mae and Freddie Mac, according to a person briefed on the deal.”

Ellie Mae misses estimates due to lower mortgage volumes
“Oct 31 (Reuters) – Ellie Mae Inc, whose software is used by mortgage professionals, reported a lower-than-expected third-quarter profit, hurt by lower mortgage volumes and higher R&D spending, pushing its shares down more than 20 percent after the bell.”

Chinese heavily focused on US real estate. How big of an impact are Chinese investors having on US property values? China now has 1 million US dollar millionaire households.
“There is a heavy demand from abroad for US real estate.  China as you know is now solidly the second largest economy in the world and with it is wielding heavy economic power.  Wealthy families are growing and with it, the ability to purchase investments and assets all around the world.  In California target locations like Los Angeles and San Francisco bring in dramatic levels of dollars from abroad.  The California housing market has been on a massive run-up in the last couple of years.  As we’ve discussed, a large part of this has been driven by domestic investors but how much of this is being driven from those abroad?  In particular how much money is flowing in from China into US real estate?  It is interesting to note that Chinese property investors are targeting select coastal regions whereas some domestic hedge funds have gone after properties in Arizona and Nevada.  It is hard to ignore the money flowing in from abroad.”