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Real Estate News 3.11.14

1. Three reasons the White House is optimistic on growth
“The U.S. economy in the next two years is well positioned for growth assuming no adverse shocks or bad policy decisions.”

2.NAR Generational Trends Study Shows Confidence in Market, Some Challenges

“WASHINGTON (March 11, 2014) – Young home buyers remain optimistic and see their home as a good investment, while older buyers are more likely to trade down to a smaller property to match changing lifestyles, according to the 2014 National Association of Realtors® Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers.”

3.Mortgage Credit Availability Increases Slightly in February

“WASHINGTON, D.C. (March 11, 2014) — Mortgage credit availability increased slightly in February according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from the AllRegs® Market Clarity® product. “For the third month in a row, mortgage lenders and investors slightly expanded credit offerings in February on net, as a result of offsetting factors,” said Mike Fratantoni, MBA’s Chief Economist.  .  Specifically, the recently implemented QM/ATR sections of the new CFPB regulations stipulate that ARM loans must qualify at the highest allowable rate for the first five years of the loan.  As a result, many investors have discontinued loans whose interest rate adjusts after only 3 year (also known as 3/1 ARMS).  While there was significant pull-back on these 3/1 programs, lenders and investors added several new 5+ year ARM programs, including those for Jumbo loans, to their repertoire resulting in a net increase to the MCAI.” “

4.Securitizing mortgage advances market set to boom

“The market for administering, financing and securitizing advances will grow from $4.5 billion in 2013 to as much as $25 billion in 2014, according to the morning panel on the topic at the Information Management Network’s first-ever Residential Mortgage Servicing Rights conference.”

5.Mid-Atlantic real estate agents expect spring home sales, prices to rise

“A new survey by Rockville market research firm MRIS found that 71 percent of mid-Atlantic real estate professionals predict transactions will increase this year from 2013. Some 82 percent project average home sale prices will also increase”

6.Here’s How Much Real Estate A Million Dollars Buys You In Every Major US City

“How much housing you can buy with a million dollars very much depends on what city you are looking to buy in.”

7.American Real Estate Investors Academy Student Makes $15,000 On His First Real Estate Deal
“A student in the American-REIA apprentice program just closed his first deal. The student had no previous real estate investing experience and his profit was $15,000.”

8.Private Lender Announces New Texas-Focused Hard Money Loan Offerings
“Leading private hard money lender announces offering of new hard money and bridge loan services for Texas-based real estate investments.”

9.Are you ready for deflation?

” For a generation, western investors have been haunted by the fear of inflation. Anyone who remembers the crazy 1970s, when prices rose by double-digits each year in most developed countries, flinches at the memory.”

10.Boarded-up, abandoned, foreclosed homes fading into memory in Sacramento
“At the height of the foreclosure crisis, roughly one in 20 homes in the Sacramento region were vacant and for sale, one of the highest rates in the nation, census figures show.”

11.Economic confidence sags to lowest level of the year
“Americans’ economic confidence continued to drop last week, according to a new survey by Gallup Inc.”

12.San Diego Home Prices & Values

“The median home value in San Diego is $473,300. San Diego home values have gone up 14.5% over the past year and Zillow predicts they will rise 4.5% within the next year.”

13.Study suggests MLS played little or no role in nearly half of 2013 home sales
“SCOTTSDALE, Ariz. — What’s the fate of multiple listing services, if nearly half of all homes sold last year were never listed in an MLS or were listed only after a buyer had already been lined up?”

14.Redfin adds new-home listings sourced from NewHomeSource.com
“Redfin users can now search thousands of new-home listings from NewHomeSource.com in the 23 markets where the online brokerage and referral site operates.”

15.As vacancy falls, market conditions continue to tighten in Southeast Wisconsin
“Conditions continue to tighten in the Southeast Wisconsin submarket, as vacancy has dropped below 8 percent and only 10 options for more than 100,000 square feet of contiguous space are currently available, according to a recent industrial market report by NAI Hiffman.”

 

http://www.tonyalvarez.com/

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Real Estate News 3.10.14

1.Markets Overview

“With little U.S. economic or corporate news on the docket Monday, investors were keeping an eye on the rest of the world to get a sense of where the market is headed”

2.Weather-adjusted, February’s job report was a hiring bonanza
“If it weren’t for the cold and snow, February’s jobs report would have registered as the strongest monthly gain in nearly four years. Adjusted for the weather, the economy added 468,000 jobs in February. (For how I calculated that, read this.) That would rank as the second-best monthly jobs gain since the end of the recession.”

3.Tax reform proposal would cut many real estate deductions

“Many long-standing home real estate tax benefits would be eliminated or sharply reduced under Rep. Dave Camp’s tax overhaul plan.”

4.Westhus Reaping Fannie Windfall to Rival Big Short: Mortgages

“Soros broke the Bank of England in 1992 by betting on the devaluation of the British pound, netting $1 billion. Paulson took home $15 billion, anticipating the collapse of subprime debt that contributed to the financial crisis. Now, Westhus is trying to transform the $9.4 trillion U.S. mortgage market. The 38-year-old hedge fund partner was the mastermind of Perry Capital LLC’s 2010 purchase of Fannie Mae (FNMA) and Freddie Mac preferred shares at 2 cents on the dollar. Back then, the mortgage giants were just about given up for dead. Today, the companies are profitable and their shares have soared 24-fold. “

5.Real estate – Silicon Valley’s next great tech market

“Real estate, as an industry, is one of the biggest there is. Collectively, real estate holdings account for about $1 trillion, the second largest asset class after stocks. “

6.How to get the best deal buying a new house

“Prices of homes are expected to tick up again this year, and mortgage rates are due to creep up, too. And that’s on top of the increases already experienced over the past year”

7.Housing Recovery Expected to Press On Despite Recent Volatility in Consumer Attitudes

“WASHINGTON, DC – Americans’ outlook on housing and the economy has fluctuated somewhat during the past few months, but the trend for most indicators remains positive overall, according to Fannie Mae’s February 2014 National Housing Survey results. Notably, respondents’ home price expectations climbed significantly in February – with 50 percent saying home prices will go up in the next year – following a measurable downturn in January, while the share of those who believe it is a good time to buy a home ticked up by 3 percentage points. At the same time, those who believe that it would be easy to get a mortgage dropped 7 percentage points from January’s all-time survey high of 52 percent. Additionally, the share of respondents who say the economy is on the wrong track increased 3 percentage points to 57 percent in February, following a four-month decline. Despite a decrease in optimism across some of the indicators last month, consumer attitudes remain in generally positive ranges.”

8.Size of New Homes Getting Bigger

“As the economy slowly recovers, America’s love affair with oversized homes continues to grow. According to a new Census Bureau  report, the average and median size of a new home has grown significantly in the past few years. “

9.Consumer confidence in housing still trending upwards

“Despite some recent volatility, consumer sentiment towards the housing market continues to trend upwards, Fannie Mae report10.Accuracy in real estate listings: Data errors raise concerns over legal damages, responsibilitys.”

10.Accuracy in real estate listings: Data errors raise concerns over legal damages, responsibility

“The Combined Los Angeles/Westside Multiple Listing Service (CLAW) recently decided to delay syndicating its listings to portals such as Trulia and Zillow by 48 hours.”

11.Housing Recovery Continuing, but not yet Robust -Fannie Survey

“Americans expectations regarding home prices ticked up decisively in February, both in terms of anticipating continued price increases and in the size of such gains.  Fannie Mae’s National Housing Survey results released on Monday showed an increase of 7 percentage points to 50 percent in the share of survey respondents who expect home prices to rise over the next 12 months, more than bouncing back from a 6 percentage point downturn in January.  Among that 50 percent, the average size of the expected price gain jumped to 3.2 percent from 2.0 percent in January.”

12.Housing Scorecard Focuses on Principal Reduction Program

“The February edition of the Obama Administrations Housing Scorecard was released late Friday by the Departments of Treasury and Housing and Urban Development along with the monthly report, for January, of the Making Home Affordable (MHA) program.  The scorecard notes that purchases of new homes rose, foreclosure completions continued their downward trend, and house prices were stable.”

13.Latest on Fannie & Freddie; Stearns Takes #1 Wholesale Spot; Servicing ValuePrimer

“Every lender & servicer, and therefore borrower, is influenced by the price of servicing. And in recent months we have all seen large blocks of servicing being sold and bought. I received this note on the topic: “Rob, I have a basic understanding of how the price of a loan is based on the value of the asset – basically the coupon passed through – plus the value of the servicing. The value of the asset is based on the bond market, but what makes up the value of the servicing?” I will be very brief, since very lengthy documents have been written about valuing servicing. And easy way to explain it to someone else is in terms of cash flow: there is more value in a series of payments that last a long time, and are safe – just like anything else.”

14.Real Estate ETFs Asset Inflows Already Surpass All Of 2013

“Investors have funneled more money into real estate exchange traded funds so far this year than all of 2013 as interest rates level off and property values strengthen.”

 

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49 Articles on Real Estate News 2/28/14 – 3/8/14

9 Questions To Ask Before Buying Your First Home

“While the dream of home ownership may have taken a beating during the recent recession, a majority of Americans still say that buying a house is in their life plan.”

Buy vs. rent: What you’ll pay in the 10 biggest cities

“Despite rising home prices and climbing mortgage rates, it’s still cheaper to buy a home than rent one in major cities across the country, according to real estate web site Trulia, which analyzed data in 100 metro areas.”

How to Know If a Neighborhood Is Gentrifying

“Bargains may be few and far between in the current real estate market, but buyers can get a deal if they are willing to purchase a home in an up-and-coming neighborhood. But discovering a neighborhood with potential can be tricky.”

Questions You Need to Ask a Real Estate Agent

“Real estate agents are key to buying or selling a home, but not all agents are created equal.”

What The Home-Price Slowdown Really Looks Like

“The Trulia Price Monitor and the Trulia Rent Monitor are the earliest leading indicators of how asking prices and rents are trending nationally and locally. They adjust for the changing mix of listed homes and therefore show what’s really happening to asking prices and rents. Because asking prices lead sales prices by approximately two or more months, the Monitors reveal trends before other price indexes do. With that, here’s the scoop on where prices and rents are headed.”

Michael Milken: How Housing Policy Hurts the Middle Class

“The American dream traditionally meant that anyone could get ahead based on ability and hard work. But over the past few decades, the United States government created incentives through housing programs and the tax code that changed the dream for many Americans. Middle-class families began to think of homes as investments, not just shelter. When the housing market crashed, everyone suffered—homeowners, investors, wage-earners and taxpayers.”

Is the Economy Stronger Than Current Measures Show?

“Numerous indicators have been flashing warning signals recently, sending economists and policymakers scrambling to determine how much of the deterioration is caused by unusually cold and stormy weather.”

Mortgage rates fall again
“After three weeks of trending higher, mortgage rates have once again turned lower.”

Cheap Obama mortgages to get more expensive

“Nearly 783,000 homeowners whose mortgage rates were reduced under the government’s Home Affordable Modification Program are going to see their rates increase over the next few years, which will likely lead some borrowers to re-default, a federal watchdog warned.”

5 ways your home is changing

“In early February, the National Association of Home Builders (NAHB) and the National Kitchen and Bath Association (NKBA) gathered for the first annual Design and Construction Week in Las Vegas, a new event that combined the building industry’s two primary trade shows — the International Builders’ Show (IBS) and Kitchen & Bath Industry Show (KBIS) — into one mega-event that drew over 75,000 builders, designers, and product manufacturers. “

Economy just muddling along

“The economy merely muddled along at the end of the year, but economists call it “impressive” given the federal spending cuts and the government shutdown in October.”

Fed’s Dudley flags easy money now, rate rise around mid-2015

“The Federal Reserve is not about to back off its highly accommodative policy, though investor predictions of a rate rise by midway through next year are reasonable, an influential U.S. central banker said on Friday.”

Freddie Mac: Mortgage rates down; 30-year fixed averaging 4.28%

“The cost of a home loan dropped early this week on less than robust news about the economy and housing, with Freddie Mac reporting that the average interest rate for a 30-year fixed mortgage was 4.28%, down from 4.37% a week earlier.”

Investors ready for mortgage-credit risk: Treasury

“WASHINGTON (MarketWatch) — Congress’s lack of progress on reforming the U.S. housing-finance system shouldn’t be “an excuse” to delay rebuilding the market for private-label mortgage securities, a senior U.S. Treasury Department official said Thursday. “

Household Worth in U.S. Climbs by $2.95 Trillion to Record
“Household wealth in the U.S. increased from October through December, as gains in stock portfolios and home prices boosted Americans’ finances. “

Mortgage rates fall amid lower economic data

“Mortgage rates fell lower amid weaker-than-expected economic news and housing data, the Freddie Mac Primary Mortgage Market Survey revealed.”

3 signs the economy is in a quagmire

“The official U.S. Labor Department jobs report comes out Friday morning and HousingWire will have it, but in the meanwhile a series of economic indicators and events suggest a continued weakness in the U.S. economy.”

Property ETFs Draw More Money Than in All of 2013: Mortgages
“Investment flowing into exchange-traded funds focused on real estate this year has already eclipsed the 2013 total as concern over rising interest rates subsides and property markets improve.”

REAL ESTATE: Where are the boomerang buyers?

“It appeared in a March 4 newsletter by Irvine-based John Burns Real Estate Consulting, as Sean Fergus makes the point that of the 5.3 million households that lost a home to a foreclosure or short sale from 2007 to 2013, many are regrouping to become homeowners again.”

HOUSING: ‘Precipitous’ drop in institutional investors
“Investors bowed out of the Inland Southern California and national homebuying scene in January in bigger numbers, a new report from a real estate information service notes.”

Home-equity loans make a comeback
“Home-equity lending surpassed 2009 levels in 2013, with $111 billion in new home equity lines of credit (HELOCs) opened. In the fourth quarter, new lending increased 43% from quarter four 2012, according to data from Experian-Oliver Wyman Market Intelligence Reports and Experian’s IntelliView tool. “

Investing in farm, single-family home REITs

“Buying a farm isn’t cheap. But the average investor with an appetite to own crop-yielding real estate has another avenue these days: investing in a farmland REIT. “

Video killed the commercial real estate broker: A new marketing strategy

“Everywhere you look, it seems as though video is taking over. (Remember when LCD installations were still notable at gas stations and taxi seat backs?) Now commercial real estate is getting into the act with high-end video marketing videos, a trend I write about in this week’s real estate special issue.”

Appraiser: Johnson County real estate downturn is over

“The recession and real estate slump clearly are over in Johnson County, according to a 2014 revaluation report released by the Johnson County Appraiser’s Office.”

These guys say, ‘Don’t invest like it’s 1980’

“Bret Sinak and Ron Portell, managing partners at Endeavor Wealth Management in Chesterfield, with $100 million in client assets, believe a lot of small and midsize institutional investors are. They contend too few are venturing beyond stocks, bonds and cash into alternative investments, such as real estate and commodities, through mutual funds and exchange traded funds.”

14 Real Estate Terms That Everyone Should Understand
“Whether you are trying to buy or sell a home (or do both!), you need to familiarize yourself with the lingo.”

California Upgrades Homebuyer Grants and Loans Programs, Says Broadview Mortgage Long Beach

“Broadview Mortgage Long Beach reports a guideline to homebuyer assistance loans and grants in California. Long Beach, California (PRWEB) March 08, 2014. Broadview Mortgage Long Beach offers detailed information on homebuyer grants and loans available. “

The 70% Rule: One Critical Formula Investors Need to Know

“The 70% of ARV (after repair value) “rule” is a formula commonly referred to by real estate investors, and used as a barometer when purchasing distressed real estate for a profit.  The formula will calculate the maximum you can pay for a given property once you input two key factors, namely the ARV and”

Report: Sacramento area led nation in median home sales price growth in 2013

“Amid an improving housing market nationwide, the Sacramento area led the nation in year-over-year percentage median sales price growth at the close of 2013 and the beginning of 2014, according to Emeryville-based ZIPRealty Inc.”

California housing leaving the middle class behind in the dust

“California is a land of booms and busts.  Generations ago gold rush fever brought many to speculate and gamble for future glory.  In the 1900s the promise of uninterrupted sun and great weather lured families to the area. “

California’s unemployment rate decreases to 8.1 percent

“California’s unemployment rate decreased to 8.1 percent in January, and nonfarm payroll jobs decreased by 31,600 during the month for a total gain of 1,171,000 jobs since the recovery from the Great Recession began in February 2010, according to data released Friday by the California Employment Development Department from two separate surveys.”

Job cuts decline in February

“The pace of downsizing declined in February as U.S.-based employers announced plans to cut payrolls by 41,835, according to the report Thursday from outplacement firm Challenger, Gray & Christmas Inc.”

Realtor/economist: 2014 will be ‘better’ year for local real estate

“Leslie Appleton-Young, vice president and chief economist for the California Association of Realtors (CAR), delivered her “2014 Housing Market Forecast” at the Silverado Resort and Spa in Napa on Tuesday.”

Triple-net leased investments

“A triple-net (NNN) leased investment is a type of lease where the tenant is responsible for paying not only the rent, but all three of the “net” expenses, hence the “NNN.””

Things You Should Be Doing Right Now if You Plan to Sell Your House This Spring

“If you’re thinking about putting your house on the market this spring, the time to start preparing is now! With persistent cold and blustery weather, it may feel like the spring selling season is in the distant future, but if you begin taking actions now, you can avoid the pressures of last minute preparations. Remember, you’ll be faced with much stiffer competition because the housing market gets flooded with new listings every spring.  So, if want your property to stand apart from the competition, it’s going to take extra effort on your behalf. If you want your house to be in good shape when the weather starts to warm up, here are 5 tips to follow.”

Valley housing market off to tepid start

“The San Fernando Valley housing market’s tepid pace dragged into the new year as the supply of distressed properties continued to dry up in January, according to two reports released Wednesday.”

First-time San Fernando Valley home buyers getting squeezed out

“It’s pretty clear distressed properties have finally been flushed out of the San Fernando Valley’s real-estate market.”

Reverse Mortgages: New Rules Make Them Safer for Homeowners

“The promises of a reverse mortgage — never having to pay a mortgage bill again and using your home’s equity to finance retirement — can sound too good to be true. It almost was too good to be true during the Great Recession, when more borrowers were withdrawing most of their home equity at closing and the federal government’s reverse mortgage program was failing. Legislation in 2013, however, kept the program from dying by instituting some changes, and made it safer for older Americans.”

Mortgage Rates Fall, Reverse Recent Upward Trend

“WASHINGTON — Average U.S. rates on fixed mortgages fell after three weeks of increases, edging closer to historically low levels.”

Houses With Curb Appeal, for Under $100,000

“While you can’t always judge a home by its exterior, a welcoming entry is often a sign of a welcoming interior. Even when it comes to affordable real estate, curb appeal is worth considering, as it can indicate how much past owners have cared for a property.

Home Prices Rise at Solid Pace in January

“WASHINGTON — U.S. home prices rose in January after three months of declines. A tight supply of homes might have helped boost prices and offset sales slowed by cold weather.”

Zillow analyst says new exec has good shot at forging partnerships with MLSs

“Zillow lured former realtor.com executive Errol Samuelson away from Move Inc. to do pretty much the same thing it had hired former Arizona Regional MLS CEO Bob Bemis to do: improve industry relations and beef up the quality of listings data on the website by forging more direct partnerships with multiple listing services. – See more at: http://www.inman.com/2014/03/07/zillow-analyst-says-new-exec-has-good-shot-at-forging-partnerships-with-mlss/#sthash.gSKH1BGf.dpuf”

17 Hacks to Get Your House Sold

“If you’re like many sellers, you think your house is perfect and you can’t imagine why it wouldn’t sell exactly like it is right now. This is a common problem. It’s called “You can’t see what’s right in front of your face because you’re enamored with your house-itis.”

Attract Serious Buyers, Discourage Lookie-Loos
“Serious buyers want to find a home. They’ve been pre-qualified by a lender, chosen a real estate agent, and are ready to make an offer on the right home.”

Worst Week for Mortgage Rates since August 2013

“Mortgage rates rose sharply for the third time this week, bringing them to levels not seen since January 15th.  Today’s move followed a stronger-than-expected Employment Situation report.  This is the most significant economic report each month and when it’s strong, rates tend to suffer.  Today was no exception as job creation moved back in line with recent averages, defying the expectation that the historically harsh winter weather would make for downbeat data.”

10 cities where ordinary people can no longer afford homes
“It now seems pretty clear that late 2012 or early 2013 was the ideal time to purchase a home: Real-estate prices and interest rates were both near record lows, creating an unprecedented buying opportunity for those who could muster a down payment and qualify for a mortgage.”

 

 

 

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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 2.25.14

U.S. mortgage applications slip in latest week: MBA
“(Reuters) – Applications for U.S. home mortgages fell, including both new purchases and refinancings, in the latest week, an industry group said on Wednesday.”

Moody’s warns mortgage servicers may turn to offering risky loans
“Feb 26 (Reuters) – Credit rating agency Moody’s Corp warned that mortgage servicers such as Ocwen Financial Corp could be pushed into subprime lending as their core business comes under increased regulatory scrutiny.”

Freddie pushes Mom-and-Pop shops as REO sales slow
“Big institutional investors drove a lot of the housing sales in 2013 – accounting for as much as 40% of all sales in the year.”

Biggest Banks Said to Face Asset Tax in Republican Plan
“The biggest U.S. banks and insurance companies would have to pay a quarterly 3.5 basis-point tax on assets exceeding $500 billion under a plan to be unveiled this week by Congress’s top Republican tax writer.”

NAACP, Casa rally for foreclosure moratorium
“ANNAPOLIS, Md. —The NAACP and Casa de Maryland joined forces Monday night for a rally on Lawyers Mall in Annapolis.”

Don’t Blame Winter Weather For Housing And Economic Problems
“President Obama and many of the nation’s top economists entered 2014 predicting a breakout year for the economic recovery. However, troubles in the housing sector indicate more difficulties and several more years of mediocre growth lie ahead.’

Fugitive mortgage scammer allegedly attacked prosecutor after capture
“DETROIT, Feb. 25 (UPI) — A man convicted in a massive Detroit mortgage scheme assaulted a prosecutor following his capture after eight months on the run, officials say.’

Geithner’s Book to Tackle His Image as Wingman of Wall Street
“Timothy Geithner’s memoir will explain his decisions during the global financial crisis, tackle any misperceptions and describe surviving a political firestorm from Wall Street to Main Street, he said.”

Sage Kotsenburg’s ‘totally dope’ mortgage biz can save you ‘chowsands’
“He’s already won a gold medal. He’s got himself a bacon medal.”

Reports Say Home Prices Lose Momentum
“The good news: home price appreciation had its best year since 2005. The bad news: momentum has apparently slipped away.”

Feb. Consumer Confidence Sees ‘Moderate Decline
“The Conference Board Consumer Confidence Index fell in February after a slight rebound in January.”

Congressional Republicans mull bill to add CFPB oversight
“This week the House will consider a bill designed to bring what supporters say will be more accountability and transparency to a government entity that holds private businesses accountable.”

Now accepting applications: A new word for subprime
“As the market leans more on its mortgage machines, rising mortgage rates and dwindling refinance options are pushing people to turn to a new strategy: subprime.”

Freddie pushes Mom-and-Pop shops as REO sales slow
“Big institutional investors drove a lot of the housing sales in 2013 – accounting for as much as 40% of all sales in the year.”

JPMorgan plans 8,000 layoffs
“JPMorgan Chase (JPM) is expected to reduce employee headcount in mortgages by 6,000 in 2014, in addition to an expense reduction of $2 billion from 2013 to 2014. It’s part of a total predicted reduction of 8,000 jobs, the bank announced in its investor day presentation.”

Toll Brothers earnings surge on higher home prices
“Luxury homebuilder Toll Brothers’ (TOL) first quarter net income ended Jan. 31 totaled $45.6 million, or 25 cents per share, compared to $4.4 million, or 3 cents per share, in the first quarter last year.”

Why is Las Vegas cooling so fast?
“The latest news from DataQuick is that Las Vegas-area homes sold at the slowest pace for a January in five years, as the median sale price dipped month-to-month but remained 22% higher than a year earlier.”

Despite winter storms, 29 markets hit peak
“Single-family properties in all 300 top U.S. market witnessed year-over-year growth, according to the Homes.com December Local Market Index.”

New Home Sales in U.S. Unexpectedly Rise to Five-Year High
“Purchases of new U.S. homes unexpectedly climbed in January to the highest level in more than five years, showing underlying strength in the industry even in the midst of unusually harsh weather.”

Burbank real estate market thrives
“Almost everything is up in Burbank’s real estate market. More homes and condominiums were on sale last month compared to the year prior, more homes sold and median prices continued to climb.”

Market Watch Real Estate: Market neither boom nor bust
“Southwest Florida experienced an unfamiliar new type of real estate market in 2013: a relatively normal one.”

2014 Economic Growth Off to a Chilly Start
“Cold Weather Snap, Other Crosswinds Stifle January Activity”

Freddie Mac Reports Mortgage Portfolio Decrease
“Freddie Mac released its Monthly Volume Summary for January, 2014, noting their total mortgage portfolio decreased at an annualized rate of 1.9 percent in January. Despite a slight uptick in December, 2013, Freddie Mac’s ending balance has been declining since June, 2013.”

Florida’s Consumer Sentiment Sits Tight
“A new report released Tuesday by the Wells Fargo Economics Group noted that consumer sentiment in Florida remained at 78 for the second straight month.”

More Local Markets Experiencing Full Recovery
“Homes.com has released its December Local Market Index, a price performance summary of repeat sales of U.S. properties. The index notes year-over-year gains for single-family properties in all 300 top U.S markets for the ninth consecutive month.”

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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.”

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Real Estate News 2.24.14

Taxpayers deserve every penny of Fannie and Freddie profits
“FORTUNE — Ralph Nader and New York Times columnist Gretchen Morgenson are usually reliable advocates for the little guy in the face of the enormous power the investor class wields over the American political process. But when it comes to the Treasury Department’s 2012 decision to return all of Fannie and Freddie’s earnings to taxpayers rather than issuing a 10% dividend as originally stipulated, these two are lining up behind wealthy investors.”

MBA Economic/Mortgage Finance Commentary: Low Purchase Originations Expected Despite Steady Economic Growth
“Our forecast reflects economic growth for the next two years at a pace of around 2.5 percent, as households continue to spend and business fixed investment ramps up.”

Pennsylvania’s new lien law could monkeywrench REO sales in 6 waysA new law in Pennsylvania requires that delinquent taxes on one property will create liens on all of owners’ other properties in that county, and real estate agents and lenders are worried it will put a kibbosh on business.  
“A new law in Pennsylvania requires that delinquent taxes on one property will create liens on all of owners’ other properties in that county, and real estate agents and lenders are worried it will put a kibbosh on business.”

House vote could sink flood program in sea of red ink
“With a vote to gut flood insurance reforms expected in the House of Representatives as early as this week, the flood policy reform group, SmarterSafer.org urged House members to reject a bill unveiled over the weekend that would repeal key portions of the Biggert-Waters Flood Insurance Reform Act, a move that weakens the National Flood Insurance Program by preserving subsidies regardless of need at the expense of the American taxpayer.”

Why is the Atlanta Fed so bullish?
“The housing market in the Southeast ended 2013 on a somewhat positive note, according to the latest Data Digest, from the Regional Economic Information Network, a part of the Federal Reserve Bank of Atlanta, and 2014 should restart solid after a first quarter falter.”

Commercial real estate expected to progress slowly in 2014
“Commercial real estate should continue to enjoy positive momentum in the next year, but office, industrial and retail growth will remain slow into the first quarter of 2015, according to the National Association of Realtors.”

REAL ESTATE: Las Vegas may be missing key aspects to attracting investors
“Las Vegas should be among the U.S. cities primed for renewed investor interest in commercial real estate, but a new report from a national trade group shows the city may be missing some of the attributes it needs to compete for dollars.”

REAL ESTATE TRENDS FOR 2014
“It’s that time of the year when business experts posture and predict what 2014 will bring. One of the areas that is open to constant debate is the real estate market. Will sales numbers increase? Is inventory going to come back? Will interest rates stay low? The questions abound, and the answers vary from market to market, town to town and state to state. Most agree that we’re headed in a much more positive direction, and we’ve not seen the rising numbers level off just yet.”

$2,500 a month in rent? Sign me up
“Plush gyms. Tony spas. Golf simulators. Private bowling alleys.

There are a lot of Gen-Xers and Millennials who are willing to pay $2,000 to $3,000 a month in rent for tricked out apartments, a growing market that has developers roaming the streets of San Diego, looking for places to build.”

Will condo conversions rise in 2014?
“No. With home sales currently at their three year low, neither the forces of demand nor supply are strong enough to resuscitate the condo conversion craziness that occurred prior to the burst of the housing bubble in 2006.”

Polar Vortex hits California housing market: California home sales fall over 10 percent on an annual basis. 2014 off to a drought in real estate.
“The blame game is now out in full force for the slow start to housing in 2014.  Nationwide, we’ve been hearing about the polar vortex impacting real estate.  Unfortunately it cannot be applied to California given that we’ve been in a full on drought.  Winter never came to SoCal.  I can’t remember a year with such little rain but hey, who needs water when you can purchase a World War II Cracker Jack box for $750,000 right?  Like in most manias, the folks on the ground are the last to get the memo and many are still going out for ARMs to stretch their already impaired budgets.  In 2004 one thought that was inescapable to me was the incestuous nature of real estate that was unfolding.  That is agents, brokers, banks, builders, home owners, home buyers, Wall Street, tax collectors, and everyone tied to the machine got a mega-boost thanks to ever accelerating prices hikes.  Few thought about what happens when a reversal occurred especially since incomes were not going up.  The same has happened over the last few years in more subtle ways.  The economy is weak and a big boost has come from home prices going up.  Yet much of this is now driven by Wall Street and hedge funds.  Housing is off to a slow start in 2014 and you can’t blame it on the polar vortex, especially here in a sunny and drought hit California.”

Qualified Mortgage Guidelines Haven’t Lowered Risk
“Last month’s implementation of the Consumer Financial Protection Bureau’s (CFPB) qualified mortgage (QM) guidelines did little to stem the rise of mortgage risk across the nation, according to the latest from the American Enterprise Institute (AEI).’

New Regulations for Fannie Mae and Freddie Mac
“Per new regulations finalized last week, the GSEs will be required to file suspicious activity reports (SARs) directly with the Financial Crimes Enforcement Network (FinCEN) rather than through their own regulator.”

Black Knight’s Home Price Index Shows Increase
“The Data & Analytics division of Black Knight Financial Services released on Monday its latest Home Price Index (HPI), noting an increase of .1 percent in home prices to $232,000 for the month of December.’

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Real Estate News 2.21.14

Spotlight on economy: More home sales blues?
“Severely cold weather in January stopped many construction projects from breaking ground and slowed work on existing sites. The cold snap probably kept more house hunters indoors instead of making the rounds at open houses.”

$187B bailout now profitable. Surprised?
“U.S. taxpayers have recouped all of the $187 billion they gave mortgage giants Fannie Mae and Freddie Mac in one of the most expensive bailouts of the financial crisis.”

Housing: Top 10 most affordable small cities
“Latest from the Housing Opportunity Index from the National Association of Home Builders and Wells Fargo.”

Tech workers squeezing out renters in San Francisco, Seattle
“Low- and middle-income residents of San Francisco, Oakland, Seattle and other metro areas, are getting pushed out of their homes as an influx of deep pocketed tech workers drive up rents.”

Regulators fear more bad mortgage practices
“You may have gotten a mortgage through the local branch of one of the megabanks, but did you know there’s a good chance your bank turned around and sold the rights to service your loan to somebody else?”

Wall Street Landlords Buy Bad Loans for Cheaper Homes
“Wall Street-backed landlords are showing a greater appetite for bad mortgages as a source for cheap property as the supply of foreclosed homes declines while housing prices continue to climb.”

MBA CEO David Stevens: CFPB’s Antonakes ‘went just a bit too far’
“Steven Antonakes, deputy director of the Consumer Financial Protection Bureau, walked away from a silent, shocked audience after his speech Wednesday morning at the Mortgage Bankers Association’s National Mortgage Servicing Conference & Expo in Orlando.”

Foreclosure Starts Fall to 2006 Level as Home Prices Rise
“The rate of new foreclosures in the U.S. dropped to the lowest level in eight years as rising property prices erased negative equity and allowed more delinquent homeowners to sell without losing money.”

Another ‘Subprime’ Adventure? Behind Wells Fargo’s Move To Ease Mortgage Lending
“Wells Fargo & Co. announced this month it would reduce minimum credit scores for certain mortgages eligible for government backing, prompting some declarations that subprime mortgages were making a comeback.”

Is Homeownership a Fleeting American Dream?
“Opinion: People of color are also disproportionately impacted by an overly restrictive housing market; between 2007 and 2012, loans to African Americans and Latinos have fallen by 73 percent and 66 percent respectively.”

Leading data signal ‘resilient’ economy in 2014
“WASHINGTON (MarketWatch) — The economy will likely “remain resilient” in the first half of 2014, with underlying conditions improving, the Conference Board said Thursday as it reported monthly growth and stable trends for its gauge of leading economic indicators.”

Apartment Sector Healthy, But Fundamentals Moderate
“The multifamily sector continues to perform well four-plus years after its recovery began, two analysts reported.”

NFIP reformists fire warning shot at Congress
“It may be just a rumor of war they’re hearing, but Taxpayers for Common Sense and SmarterSafer.org are firing a warning shot across the Capitol about plans they say are in the works for yet another vote on the Biggert-Waters Flood Insurance Reform Act of 2012.”

Wingspan CEO: 3 keys to success for servicers
“Dallas-based Wingspan Portfolio Advisors finished this past year with several key profile acquisitions that significantly increased the company’s size and revenue, but that’s not where the storybook ends.”

Asia investors bullish about private real estate
“Private real estate investors headquartered in Asia look set to be very active in the asset class over the next 12 months, according to an investor survey by Preqin, a leading alternative asset data and intelligence analysis firm.”

The real estate 1% and the S&P 500 are secretly connected
“Analyst Sam Khater at CoreLogic (CLGX) walks through a look comparing ultra high-end home sales versus homes sales on the lower end of the pricing segment.”

Apollo charts new course for loan strategy in 2014
“Apollo Residential Mortgage is preparing to provide loans to third parties that are purchasing residential properties with plans to resell the properties, and will then probably finance purchases by next buyers, CEO Michael Commaroto said on a conference call today.”

Student loans pinching home sales? Real Estate Open House
“This is the inaugural Front Porch open house, a weekly roundup of real estate news and information for home buyers and sellers. I’ll be checking the comments throughout the day Friday, so leave your real estate questions or links to real estate news stories I missed.”

How to hunt for the right real estate agent before hunting for a home
“If you’re planning to purchase a home in the Washington area this spring, you may face competition from other buyers for the still-limited inventory in the market.”

Serfdom nation: First time where a six year period of household formation of renters outpaced that of homeowners. Purchase applications back to levels last seen 20 years ago.
“I think it is safe to say that investor activity in the housing market has changed the face of real estate buying.  Back when the crisis hit in 2007, some analysts were cheerleading the hedge fund crowd as a tiny blip in the market.  It is hard to call it a blip when 30 to 40 percent of all purchases are going to investors for close to half a decade.  A recent analysis from RealtyTrac found that the estimated monthly home payment for a regular three bedroom home (costs include mortgage, insurance, taxes, maintenance, and subtracting the income tax benefit) rose an average of 21 percent from a year ago in 325 US counties.  What about household incomes?  That is another story.  So it is no surprise that we are largely becoming a nation of renters.  It is also no shocker that young households are largely unable to begin household formation via buying a home.  Many are living with parents well into “young” adulthood.  For the first time in history, we had a six year stretch where we added more renter households than that of actual homeowners.”

Fewer Prospective Homeowners to Clash Over Homes
“Home buying competition rose over the month of January but was down from last January, according to national real estate brokerage Redfin, which took the year-over-year decline as a sign that low inventory and rising prices are thwarting demand in the housing market.”

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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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Real Estate News 2.19.14

Construction on new homes dives 16% in January
“WASHINGTON (MarketWatch) — Construction on new U.S. homes tumbled 16% in January to a seasonally adjusted annual rate of 880,000, with drops for single-family homes and apartments, according to government data released Wednesday.”

Raising minimum wage would ease poverty but cost some jobs
“Supporters of raising the federal minimum wage to $10.10 an hour say it will increase productivity, lower turnover and increase wages for 28 million workers.”

U.S. mortgage applications fall in latest week: MBA
“(Reuters) – Applications for U.S. home mortgages fell in the latest week, with both purchase and refinancing applications down, an industry group said on Wednesday.”

Mortgage bankers make some history
“Industry’s trade association has never had an Ohioan at the helm, but now two from the state will lead it in back-to-back years”

Make Multifamily the Starting Point for Housing Reform
“Reform of the secondary market for housing finance is a big topic now among think tanks, industry representatives and on Capitol Hill. Most of this discussion has centered on the single-family market, because that is the market that collapsed, helped to precipitate the Great Recession. This recession led to 4 million American families losing their homes, according to RealtyTrac data, and the conservatorship of Fannie Mae and Freddie Mac.”

The hidden catch in the housing recovery
“This year started off with a slight plot twist. After mortgage rates rose most of 2013, 2014 began with a slight drop in rates, although they did not sink back to the levels seen at the beginning of 2013.”

Household Borrowing Rises Most in Six Years in NY Fed Report
“Consumer debt in the U.S. rose last quarter by the most in more than six years as Americans borrowed to buy homes and cars and to pay for education, according to a report by the Federal Reserve Bank of New York.”

Get Ready for a New Onslaught of HMDA Data
“That mammoth spreadsheet of mortgage data from thousands of lenders that you wrestle with every year may get considerably more inclusive.”

Mortgage servicers foreclosing on very different timelines
“A new white paper is highlighting the vast differences in foreclosure timelines at varying mortgage servicers.”

It’s California vs. the Nation in housing affordability
“Although America has 50 states, when you look at housing affordability you can more effectively split the U.S. as California versus everyone else.”

Negative builder news drags on HW 30 for second day
“Stocks were mixed Wednesday at midmorning with several construction and home builders suffering after a down report from the National Association of Home Builders and weak construction numbers for January.”

5 essential rules of real estate
“Spring signals the start of two hallowed seasons: homebuying and baseball.”

Crowdfunding Comes to Real Estate as Websites Seek Small Investors’ Cash
“MANHATTAN — A crop of new real estate startups is turning to crowdfunding as a way to get buildings off the ground.”

Real Estate Matters | How to save money and lower mortgage insurance
“I’m 28-years-old. My wife and I have owned our home for 2.5 years now. When we purchased it, I did not put down 20 percent, so I’m paying roughly $165 per month for mortgage insurance (PMI). If it helps, we do not plan on living in this house forever, but likely for the next five to 10 years. I have a low interest rate on our mortgage of 4.25 percent on a standard 30-year fixed FHA loan. I have a payment schedule set up with Wells Fargo for weekly mortgage payments, with an extra $30 per week to be applied to the principal.”

Real Estate Deals from Prison
“You can buy real estate while you are in prison…you just cannot live at your new property at that time.”

Loan Complaints by Homeowners Rise Once More
“A growing number of homeowners trying to avert foreclosure are confronting problems on a new front as the mortgage industry undergoes a seismic shift.”

Foreclosures, default notices tick up in SD
“Foreclosures and default notices in San Diego County edged up in January, but are still hovering around post Great Recession lows.”

Do banks sense a change in the California housing market? California foreclosure starts up 57 percent last month. Typical California foreclosure process lasts nearly one year and the misconception of middle class.
“It is common knowledge that banks have metered troubled real estate inventory out into the market in a slow drip fashion.  This practice over the years has caused an artificially low supply to be present in the market.  Add into the mix a low rate environment and years of investors buying up properties and you get our current stalemate of a market.  Virtually no one in the press with a voice is even expressing a possibility that prices may sway lower.  The only options making the rounds involve a couple of scenarios where prices will go up slowly in 2014 or prices will move sideways.  No option for a decrease.  This lack of perspective is odd given the resurgence of interest only loans and the fact that a well known bank is dipping back into the subprime market.  One surprising statistic that I did see was the resurgence of foreclosure starts in California.”

Zillow Marks Upward Trend in Mortgage Rates
“Zilllow Mortgage Marketplace, a lending marketplace operated by the home listing website Zillow, announced new mortgage rates Tuesday. Currently, the mortgage rate for a 30-year fixed mortgage is 4.18 percent, according to the release.”