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Real Estate News 2.13.14

NAR Tech Edge helps Realtors® Keep Abreast of the Latest Technologies
“The ever-changing technology landscape continues to transform the way that Realtors® and the real estate business operate. To help Realtors® keep up with the latest mobile and web-based technologies that can benefit their business and clients, the National Association of Realtors® is continuing its one-day technology conference series, NAR Tech Edge.”

Freddie Mac: Mortgage rates edge higher; 30-year average is 4.28%
“A five-week decline in fixed mortgage rates has ended, with Freddie Mac’s survey showing the 30-year home loan averaged 4.28% early this week, up from 4.23% a week ago.”

Southern California housing market loses momentum in January
“Southern California home buyers continue to turn their backs on an expensive market with few houses for sale.”

New Home Purchases Up Sharply in January 2014
“WASHINGTON, D.C. (February 13, 2014) — MBA estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 543,000 units in January 2014, based on data from MBA’s Builder Applications Survey.’While the big jump may appear to conflict with other data, such as MBA’s purchase application index and NAR’s existing home sales data that point to a weak market for existing homes, our Builder Application Survey estimate is consistent with reports of homebuilder sentiment that show strength in the market for new homes,’ said Mike Fratantoni, MBA’s Chief Economist.  ‘It is also worth noting that the significant January increase also followed a particularly slow pace of sales in November and December.'”

Jobs Key to Housing Market Recovery: MBA’s Stevens (VIDEO)
“Feb. 12 (Bloomberg) — David Stevens, chief executive officer of the Mortgage Bankers Association, talks about the U.S. housing market and mortgage lending. He speaks with Adam Johnson, Scarlet Fu and Tom Keene on Bloomberg Television’s “Market Makers.” Steve Miller, non-executive chairman of American International Group Inc., also speaks. (Source: Bloomberg)”

Shaun Donovan optimistic about housing reform
“Housing and Urban Development Department Secretary Shaun Donovan on Wednesday said he is encouraged by the work being done in Congress to reach an agreement on what to do with government-owned mortgage giants Fannie Mae and Freddie Mac.”

Senate Banking GSE Reform Bill Nears Completion
“Senate Banking Committee leaders are expected to soon unveil their highly anticipated bipartisan bill to overhaul the mortgage finance market as the window for moving legislation this year continues to narrow.”

Mortgage Applications Continue to Slide
“Applications for U.S. home mortgages fell in the latest week as both purchase and refinancing applications slipped, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 2 percent to 397.2 in the week ended Feb. 7. The index hit its lowest level since December 2000 at the end of last year, soon after the U.S. Federal Reserve announced it would start reducing its $85 billion per month bond-buying program as the economy grows strong enough to stand on its own.”

RealtyTrac: Monthly foreclosure filings reverse course, rise 8%
“Monthly foreclosure filings — including default notices, scheduled auctions and bank repossessions — reversed course and increased 8% to 124,419 in January from December, according to the latest report from RealtyTrac.”

HOPE NOW assists 768,000 borrowers in 2013
“Approximately 768,000 homeowners received permanent, affordable loan modifications from mortgage servicers in 2013, according to HOPE NOW’s final 2013 loan modification data.”

Mortgage delinquency rate hits 5-year record low
“The mortgage delinquency rate hit the lowest level in 5 years and dropped below 4% for the first time since 2008.”

FHFA-OIG: GSE mortgage servicing needs oversight
“The Federal Housing Finance Agency Office of Inspector General released its latest report entitled ‘FHFA’s Oversight of the Servicing Alignment Initiative.'”

Blackstone-Fueled Single-Family Home Boom Lifts Chicago
“The tan, three-bedroom house on Chicago’s North Side sits half a block from a Family Dollar store and a pawn shop — an unlikely patch of gold to mine for Blackstone Group LP (BX) in the single-family rental market.”

Homebuilders Leading U.S. Consumer Stocks: EcoPulse
“Shares of U.S. homebuilders are leading consumer discretionary stocks as the new home market is poised to rebound faster than other cyclical purchases this year.”

(Much) more Chinese real estate money heading here
“San Francisco’s Kidder Matthews is partnering with a Chinese real estate consortium ‘to act as a bridge for Chinese business investment which wants to come to the Bay Area.'”

Woman’s young age doesn’t stop her real estate success
“KANSAS CITY, KS (KCTV) – Katie Yeager is a woman breaking multiple stereotypes. She is contributing to Kansas City’s entrepreneurial spirit and making money along the way.”

Beyond ‘frozenomics’: What’s hurting the housing market
“Ask any real estate agent east of Nevada, and they’ll blame slower home sales this winter squarely on harsh winter weather.”

Home values: 5 best markets for Q4 2013
“Home values were up 10.1 percent nationally from the fourth quarter of 2012 to the same period of 2013, according to data from the National Association of Realtors. See five hot markets where prices went up fastest.”

San Diego home sales at three-year low
“The slowdown in San Diego County’s housing market continued in January, as sales dropped to their lowest levels in three years.”

Fannie Mae Announces Homebuyer Incentive up to 3.5 Percent Closing Cost Assistance on HomePath Properties in the FirstLook Period
“WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that homebuyers may receive up to 3.5 percent in closing cost assistance when they purchase a HomePath® property in 27 states during the FirstLookTM period. During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase homes without competition from investors. Fannie Mae recently announced the extension of the FirstLook period from fifteen days to twenty days.”

Interest Rates and HARP Participation Pressure Title Insurer Revenues
“2014 revenue growth for U.S. title insurers is likely to be constrained, said Fitch Ratings in a press release Wednesday. Fitch cites rising interest rates and Home Affordable Refinance Program (HARP) participation as a limiting factor for title insurers, who have experienced steady revenue growth and improving profit margins over the last two years.”

Experts Predict Level Playing Field as Investors Withdraw
“A majority of experts surveyed by Zillow and Pulsenomics expect large-scale investors will pull out of the housing market in the next few years—and that hopefully means a smoother field for consumer buyers.”

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Real Estate News 2.12.14

Commercial Real Estate Investors “Cautiously Optimistic” As the Future Unfolds, According to New Outlook Report
“WASHINGTON (February 12, 2014): Commercial real estate investments are expected to produce generally solid returns in 2014, according to the authors of Expectations & Market Realities in Real Estate 2014—The Future Unfolds, an annual forecast report released by Real Estate Research Corporation (RERC), Deloitte, and the National Association of Realtors®(NAR).”

House approves ‘clean’ debt limit after Republicans drop demands
“(Reuters) – The House of Representatives narrowly approved a one-year extension of federal borrowing authority on Tuesday after Republicans caved into President Barack Obama’s demands to allow a debt limit increase without any conditions.”

SPECIAL REPORT: MBA Delivers Cautious Economic Outlook for 2014; Financing Hits Highest Level Since ’07
“Mortgage originations for multi-family and commercial real estate in the last quarter of 2014 reached the highest volume achieved since 2007, according to the Mortgage Bankers Association (MBA). Multi-family financing, in particular, has returned to levels last witnessed at the peak of the market.”

MBA: Credit loosens as lenders adjust to QM
“The mortgage credit availability index ticked slightly higher in January and increased 1.85% from 110.9 in December to 113.0 in January, the latest Mortgage Bankers Association report said.”

Homebuyers Get Break as Loan Rates Defy Fed Tapering: Mortgages
“Ashley Underwood is taking advantage of the unexpected drop in mortgage rates by rushing to buy her first home before they go up again.”

Jumbo Loans Loom Large in Luxury Housing Market
“The view of the Pacific Ocean from the San Joaquin Hills in the California community of Newport Coast is extraordinary. So, when Mohammad Taghavian started looking for a new home four years ago, he knew exactly where he wanted to be. The housing market, however, wasn’t so cooperative.”

Late-Payment Rate on Mortgages Falls in 4Q
“U.S. homeowners are doing a better job of keeping up with mortgage payments, a trend that has reduced the rate of late payment on home loans to the lowest level in more than five years.”

Homebuyers Get Break as Loan Rates Defy Fed Tapering: Mortgages
“Ashley Underwood is taking advantage of the unexpected drop in mortgage rates by rushing to buy her first home before they go up again.”

Insurers’ Appetite for CRE Lending Spans Booms and Busts
“Life insurers got burned in the big commercial real estate bust of the 1990s. But as the sector emerges from a smaller Great Recession-era bust, insurers are showing no indication of ‘once bitten, twice shy.'”

Manhattan’s Big Banks Resist Lure of New Office Towers
“As Manhattan developers plan millions of square feet of office towers featuring the most modern amenities, some of their biggest potential tenants have decided they’re better off staying in their current homes.”

Mortgage REITs See Bargains in Competitors’ Shares
“Of all the real-estate investment trusts slammed by the stock market since interest rates began rising last year, few were hit as hard as REITs that invest in government-backed mortgage bonds.”

Zillow: Bulk home sales will boost housing
“The Zillow Home Price Expectations Survey, a pool of opinion from 110 economists, predicts housing market demand will gently ease through the next few years.”

Inspector General: Fannie Mae should implement repurchase late fees
“The Federal Housing Finance Agency’s office of inspector general found in its audit of how the government-sponsored enterprises (GSEs) handled aged repurchase demands that FHFA did not sufficiently evaluate whether to implement a repurchase late fee program at Fannie Mae.”

5 tips to help sell a home on Instagram
“There is a fair number of social media platforms out there, from Facebook to Twitter to Vine.”

Strike three for flood insurance premium hike delay
“Republicans stopped an effort to force a vote on H.R. 3370, which would delay pending flood insurance premium hikes under the National Flood Insurance Program.”

Mortgage apps reverse course, decrease 2%
“Mortgage applications slightly dropped after a light uptick last week and decreased 2% from a week prior, the latest Mortgage Bankers Association said.”

BofA, Goldman among banks facing $16 billion in fines
“NEW YORK (MarketWatch) — The settlements of lawsuits so far with major banks pave the way for some $16 billion in additional penalties to be paid by banks including Bank of America and Goldman Sachs Group over mortgage securities sold to government-seized housing giants Fannie Mae and Freddie Mac.”

Real Estate Matters | Condo boards should think twice about limiting rentals
“I have a condo that I purchased in 2007 when my daughters were going to college. They have both graduated and moved on. Unfortunately, the property values have fallen and there have been a lot of foreclosures in the complex.”

How To Manage The Stress Of A Real Estate Transaction And Not Kill Your Deal
“We always hear from clients that this real estate closing will be simple.  When I hear that, I cringe because even under the best of circumstances I know that clients will experience a bit of stress as they move from contract to closing.  Change produces stress.  To be sure, some handle the process better than others and it is difficult to predict who will hold up better – but stress always exists.”

If investors bail on housing, what then?
“Investor demand, large and small, put a floor on home prices after the housing crash and ignited a recovery. While institutional investors made up a small percentage of those home buyers, they have garnered the most attention because of the bulk purchases they made and because they are a new entrant to the housing market. The concern now is what will happen if and when they decide to pull out?”

Why hedge funds lack women in charge
“Whitney Tilson is the managing partner of the hedge fund firm Kase Capital Management, which he founded more than 15 years ago. Mr. Tilson is also the co-founder of Value Investor Insight, an investment newsletter, and the Value Investing Congress, a biannual investment conference.”

Chanos up as many shorts stumble
“In November, a small band of battered short sellers couldn’t have been more excited about the opportunity to make money from what they saw as wildly overvalued stocks. One, John Fichthorn of Dialectic Capital Management, said it was the ‘best opportunity I will see in my life.'”

Housing plans piling up: Which will get built?
“Sacramento’s new home market has yet to fully revive from its recession-induced coma, but that hasn’t stopped developers around the region from jostling to get new housing projects approved so they can be first in line to tap pent-up buyer demand.”

Big spending, fewer results for homeless
“If you want to be depressed about government spending, look no further than the $127.5 million San Diego County’s government funnels to programs that are supposed to help homeless people stay off the streets.”

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Real Estate News 2.11.14

Scary 1929 market chart gains traction
“CHAPEL HILL, N.C. (MarketWatch) — There are eerie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash.”

Metro Areas See Solid Home-Price Growth, Some Markets Facing Affordability Issues
“WASHINGTON (February 11, 2014) – The lion’s share of metropolitan areas continued to experience strong year-over-year price growth in the fourth quarter, according to the latest quarterly report by the National Association of Realtors®. A companion metro area annual affordability report shows less favorable conditions, particularly in the West.”

Construction Equipment Rentals Boom
“MOLINE, IL—As reported yesterday in GlobeSt.com, panelists at the recent Mortgage Bankers Association’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo said that construction lending has increased to levels not seen in decades. And in another sign of a US economic rebound, construction and industrial equipment rentals have also soared, according to data just published in the American Rental Association’s ARA Rental Market Monitor™.”

NAR: Rising home prices infringe affordability
“The vast majority of metropolitan areas continued to experience strong year-over-year price growth in the fourth quarter, the latest quarterly report by the National Association of Realtors revealed.”

NAR’s chief economist said what about the housing market?
“Lawrence Yun, chief economist at the National Association of Realtors, caught HousingWire’s eye with his recent remarks at the Alabama Commercial Real Estate conference.”

MBA: Credit loosens as lenders adjust to QM
“The mortgage credit availability index ticked slightly higher in January and increased 1.85% from 110.9 in December to 113.0 in January, the latest Mortgage Bankers Association report said.”

How community banks will reign in 2014
“Despite some small lenders choosing to shut the door on originating mortgages, community banks could have just the right kind of leverage to succeed in 2014’s lending environment.”

2014 predictions: Redfin goes public and more
“Monday marked the one-month anniversary of the implementation of the Consumer Financial Protection Bureau’s Qualified Mortgage rule.”

Boehner backs down, says House to vote on ‘clean’ debt-limit hike
“WASHINGTON –  House Speaker John Boehner, in an abrupt shift, announced Tuesday that the House would vote on an increase in the nation’s borrowing cap without any strings attached.”

Fed’s Plosser ‘worried’ about not raising rates
“Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said Tuesday history is not on the side of the central bank when it comes to raising interest rates in a timely manner, and the risk is financial markets will force its hand.”

Former foreclosure attorney in jail
“VISTA — A former attorney who pleaded guilty to stalking, trespassing and other charges related to his work for clients facing foreclosure admitted Monday that he violated his probation.”

Your Homeowner’s Insurance Is Soaring Thanks to Hail From 5 Years Ago
“Brutal storms—including some that hit quite a few years ago—are causing rates on homeowner’s and flood insurance policies to skyrocket.”

U.S. Economic Confidence at Lowest Level Since December
“WASHINGTON, D.C. — The Gallup Economic Confidence Index dipped to -18 for the week ending Feb. 9 — the lowest weekly reading so far in 2014. The index is similar to the -17 measured during the prior two weeks and January’s monthly average of -16. Americans’ confidence in the economy has been falling since it reached this year’s weekly high of -13 in early January. The index was 10 points more positive in early February 2013 than it is now.”

‘Nonpracticing entity’ or ‘patent troll’? Property Disclosure Technologies sues 13 real estate companies
“More than a dozen real estate companies — including Re/Max, Century 21 and Keller Williams — have been hit with patent infringement lawsuits by a company that does not maintain a website or offer any products or services but holds patents on a ‘real estate disclosure reporting method.'”

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Real Estate News 2.11.14

91 million Americans aren’t looking for jobs
“The unemployment rate isn’t always the best measure of the job market, because it only includes people who have actively searched for work within the last four weeks. Many Americans just aren’t looking for jobs.”

Hurdles shrink for jumbo loan shoppers
“You’ll pay more for a big home nowadays, but a big mortgage should be less of a reach.”

Public interest group sues Justice Dept. over JPMorgan settlement
“WASHINGTON — A public interest group on Monday sued the Justice Department over last year’s record $13-billion settlement with JPMorgan Chase & Co., arguing the deal to resolve investigations into faulty mortgage investments was unconstitutional because courts did not review it.”

Mortgage servicer shenanigans keep consumer watchdog busy
“Many of the complaints filed with the federal Consumer Financial Protection Bureau involved servicing, loan modification and foreclosure activities by home-loan servicers.”

Idea floated of Milwaukee selling foreclosed homes in bulk
“With nearly 1,300 properties in its inventory because of tax foreclosures, the City of Milwaukee is entertaining ideas to whittle the list down, perhaps through private-equity investment.”

Seniors overspend on mortgage, credit cards
“Remember that your spending and spending behavior are among the few things you can really control.”

How confident are Americans in getting a mortgage?
“More Americans surveyed now believe it would be easy for them to get a mortgage, according to Fannie Mae’s January 2014 national survey of consumer attitudes in housing.”

Zillow: How to sell a home, despite winter wonderland
“Inch upon inch of snow is piling up, and the desire to stay home curled up by the fire is becoming harder to turn away from: welcome to winter.”

Housing Scorecard: America still healing from Great Recession
“Despite positive trends in the housing market, officials caution that the economy is still healing from the Great Recession, the Obama Administration said in the November housing scorecard.”

D.R. Horton to return mineral rights to Florida homeowners
“The attorney general of Florida, Pam Bondi, announced that homebuilder D.R. Horton (DHI) is sending letters to around 18,000 Florida homeowners to give them the option to receive their mineral rights.”

U.S. Home Sellers Return for Spring as Buyers Get Relief
“Suzanne Baker and her siblings bought a foreclosed home in Atlanta two years ago, added a fourth bathroom, then waited for values to rebound before considering a sale. Now, she says, they’re ready to cash in.”

REAL ESTATE: Lewis Group of Companies poised for the next wave of building
“Step into Lewis Operating Corp.’s headquarters, and the history of a family business that Ralph and Goldy began in 1955 is clearly defined.”

In Chaos of Brooklyn Housing Market, Giving Buyers an Advantage
“In Jonah Landman’s Brooklyn, or at least on his blog, house hunting is ferocious and fast.”

New Pennsylvania law will affect many real estate transactions
“Under a new Pennsylvania law that will affect many real estate transactions, property owners who get behind on their taxes on one property will have a lien slapped against all their other properties in that county.”

Real estate rebound prompts home construction
“LAS VEGAS (FOX5) -Home sellers hoping to recoup value lost during the recession are dealing with a glut of new properties on the market.”

8 Solutions to San Francisco’s Housing Problems
“On one of the first rainy days that drought-stricken California has had in months, San Francisco Mayor Ed Lee stood out of the rain in an unfinished retail space on the city’s gentrifying Market Street. Exposed pipes ran past naked plaster and cold concrete floors, but the drab backdrop had shining significance: above the retail space were nearly two dozen brand new, below-market rate apartments, the kind of housing the land-constrained, soaringly expensive city desperately needs—and that the mayor has vowed to provide.”

Broke, young, and unable to afford a home: The crisis for young American home buyers and household formation.
“Making homes unaffordable to younger Americans is more problematic than simply altering the living habits of upcoming generations.  Housing formation in the United States is entering uncharted territory based on demographic shifts and also the new reality that younger Americans will be less affluent than their parents.  This is why we have millions of younger Americans living at home with parents.  Some may not view this as an issue but in the past, construction was a big part of GDP and you will have a hard time justifying new housing construction if people are simply living at home or are only able to afford a rental.  The student debt crisis goes hand and hand with the unaffordable nature of housing for young Americans.  It also doesn’t help that Wall Street is crowding out regular buyers in the market.  With a growing population and investors eating up the low supply of housing, many young Americans are essentially in the position to move back home or to rent.  Buying is a remote possibility for many Americans and this has put a clamp on new housing formation.”

The big money club and interest only loans: Housing bubble favorite of interest only loans back in the market for wealthy households.
“There is little doubt that growing wealth and income inequality is a reality in the United States.  Even in California we can see this microcosm unfold dramatically.  You have people being pushed inland from coastal areas and those near employment hubs have seen housing values reach near peak levels.  What we are also seeing is that access to debt is the key measure of success in this economy.  For example, the bubble favorite of interest only loans is back but with a different flavor.  Banks like Wells Fargo, Bank of America, and Union Bank are back at it underwriting interest only loans to wealthier clients.  The big difference is that you need to have money to play in this current market.  Banks are holding onto these loans in their own portfolios.  Not a bad way to earn money in a low rate environment.  So this hits at the heart of the issue where Fed policy has largely aided those least needing it in a modern day feudal banking network.  For example, you can buy a $1,000,000 home today with a 3 year interest only mortgage and carry a principal and interest payment of $1,562 per month.  Impossible?  Welcome to the modern banking system where low rates are accessible to those who least need it.”

Consumers Positive About Access to Mortgage Credit; Views Toward Economy Improving
“WASHINGTON, DC – More Americans now believe it would be easy for them to get a mortgage, according to Fannie Mae’s January 2014 National Housing Survey results. Consumer attitudes regarding the ease of getting a mortgage climbed 2 percentage points to an all-time survey high of 52 percent, while those who think it would be difficult dropped 3 points to 45 percent. This indicates that consumers perceive that mortgage credit is more accessible. Even though this month’s survey shows a more moderate expectation for home price gains within the next 12 months, the view that mortgage credit is more available may allow for continued but measured improvement in the housing recovery.”

FHFA Announces HARP Milestone
“In a report released Monday, the Federal Housing Finance Agency (FHFA) announced Fannie Mae and Freddie Mac have reached the milestone of three million refinances under the Home Affordable Refinance Program (HARP).”

Freddie Mac Announces Third Risk-Sharing Deal
“Freddie Mac announced the pricing of its first Structured Agency Credit Risk (STACR) transaction of the year: a $1 billion offering of debt notes whose buyers will share in the risk.”

Housing Outlook – A Bear Market?
“Since 2011, home prices have gained in the double digits, making a price plateau inevitable. But are we really entering a bear housing market? Not if we look at long-term fundamentals.”

How an energy-efficient mortgage can save you money
“The crippling cold, coupled with a growing desire for energy efficiency, has both prospective and existing homeowners considering the merits of a “green” mortgage. These energy-efficient mortgages are a way to finance home improvements, but they can result in higher monthly mortgage payments.”

Why some homes have a secret ‘For Sale’ sign
“One of the worst things a home seller can do when listing a home is price it too high.”

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Real Estate News 1.31.2014

Sales of $1-million-plus homes went through the roof in California

“In California last year, 39,145 homes were sold for $1 million or more, a six-year high. Celebrities and flippers did their part.”

 

The Rundown: 3 charts that show a recovery stalling

“Retail sales are down, pending home sales are down, and now retail foot traffic is down. But we’re in a ‘recovery.'”

 

Blackstone shows REO-to-rental can be billion-dollar business (nearly)

“Blackstone Group (BX) fourth-quarter earnings came out this morning and show a huge jump in profit compared to last year.”

 

FHA goes full throttle with modernization effort

“As part of its modernization effort, the Federal Housing Administration is accepting more electronic signatures on mortgage-related documents.”

 

CEOs Pledge Help to White House for Long-Term Unemployed

“President Barack Obama is meeting today with chief executive officers of companies from Bank of America Corp. to EBay Inc. who have committed to giving the long-term unemployed a better chance in the hiring process.”

 

Wall Street Bonds Draw Scrutiny Where Subprime Spread: Mortgages

“Mark Takano saw how subprime mortgages devastated his hometown of Riverside, California, after Wall Street helped inflate a housing bubble that burst and left a trail of foreclosures among the worst in the U.S.”

 

U.S. Homeownership Rate Falls on Higher Costs for Buyers

“The homeownership rate in the U.S. declined in the fourth quarter as higher borrowing costs and tight credit blocked many first-time buyers.”

 

HOUSING: Inland home flipping still fashionable in 2013

“Home flipping did not fall by the wayside in 2013, and neither did its profits, a new housing data report by Irvine-based RealtyTrac suggests.”

 

First Estimate for Fourth-Quarter GDP Growth: 3.2%

“The nation’s economy continued to grow in the fourth quarter, helped along by improvements in consumer spending and business investment.”

 

The Real Estate Crystal Ball: What’s on the Horizon for 2014

“The past few years in real estate have been unpredictable. Between high foreclosures one year to low inventory in some major markets the next, it’s hard to tell where the market is going to go.”

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Real Estate News 1.30.2014

U.S. seeks $2.1 billion from Bank of America
“The Justice Department is seeking $2.1 billion in fines from Bank of America related to mortgage fraud perpetrated by Countrywide Financial before it was purchased by BofA.”

Why the OCC is worried about looser lending standards
“A new report from the Office of the Comptroller of the Currency (OCC) is a definite study in contrasts.”

Disappointing pending home sales blamed on winter weather
“Is it the winter weather, a slowdown in housing or a combination of both that caused real estate contract signing to cool in December?”

Second REO-to-rental deal to raise millions, and questions
“With Bloomberg breaking news Tuesday night that American Homes 4 Rent, the nation’s second-largest single-family landlord, has tapped Goldman Sachs (GS) to arrange a bond backed by house rental payments, it looks like REO-to-rental as an asset class is here to stay a while.”

Don’t look now: Fannie, Freddie, Ginnie bonds are on a roll
“While the Federal Reserve continues to reduce holdings of mortgage-backed securities and Treasurys, the mortgage bond market is reacting well. Very well.”

Did Freddie just prove multifamily is making a comeback?
” Multifamily seems to be the buzzword of January.

Every time you turn around, there is another analyst report suggesting the sun is either shining on or about to shine on multifamily properties.”

Foreclosure Inventory Down 31% in 2013, Slow Progress Expected in 2014
“National foreclosure inventory fell 31 percent year-over-year in December, with 2.1 percent of all homes with a mortgage in some stage of foreclosure, according to CoreLogic’s December National Foreclosure Report.”

Mortgage Rates Down on Tepid Housing Numbers
“Fixed mortgage rates this week moved down to their lowest levels so far in 2014, according to surveys from Freddie Mac and finance site Bankrate.com.”

FOMC Moves Forward on Tapering
“In its first meeting this year, the Federal Open Market Committee (FOMC) voted to once again cut back on the Federal Reserve’s bond-buying program.”

Why the Real Estate Industry Is Interested in Drones, Too
“In this halting, vertigo-inducing video, you can watch a couple of guys from the creative agency Neoscape toy with their newly built drone, outfitted off the Boston Inner Harbor with a GoPro camera…”

Jobless claims rise more than expected
“(Reuters) – The number of Americans filing new claims for unemployment benefits rose more than expected last week, but the underlying trend suggested the labor market continued to heal.”

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Real Estate News 1.29.2014

Borrowers Struggle Despite Equity Gains
“The ongoing price recovery and rise in positive equity around the country has been cause for celebration among many industry commentators—but they’re not much comfort to those who continue to struggle to pay their mortgages, Fitch Ratings says in a new release.”

Business Ticks Up at Freddie Mac
“Freddie Mac’s mortgage business grew—albeit slowly—in December, capping the year with an overall negative growth rate.”

As Broncos, Seahawks Face Off, Analysts Compare Markets
“As the Super Bowl approaches, the sports world is abuzz with comparisons of the two teams facing off Sunday as analysts compare everything from the number of veteran players to yards gained during the season. At the same time, ZipRealty, a national online real estate brokerage based in Emeryville, California, looked at the stats to compare the two teams’ home housing markets.”

Case-Shiller Indices Up 13.7% Year-on-Year
“Despite experiencing a slight downturn—the first monthly decline in a year—home prices still turned in a strong performance in November, according to the S&P/Case-Shiller Home Price Indices released Tuesday.”

Obama offers new ‘MyRA’ retirement accounts
“President Obama on Tuesday offered up a new kind of “starter” retirement accounts aimed at employees of companies that don’t offer such plans.”

Obama speech highlights gap between his goals and his resources
“The 2014 State of the Union address emphasized policies aimed at closing the income gap, but Obama has limited ways to achieve that.”

Hedge Funds See Cheap Homes With Soured Loans: Mortgages
“After David Sherr left Lehman Brothers Holdings Inc. in 2007 to start a hedge fund, he considered buying delinquent mortgages to profit from the U.S. housing collapse. Following years of passing on the debt, he now sees the loans as one of the best ways to play the recovery.”

Jefferies to Pay $25 Million Over Mortgage Trading Probe
“Jefferies Group LLC, the investment bank owned by Leucadia National Corp. (LUK), agreed to pay $25 million to settle U.S. criminal and civil probes of suspected abuses in the trading of mortgage-backed securities after the financial crisis.”

Goldman Sachs Said to Lead American Homes 4 Rent Bond Deal
“Jan. 29 (Bloomberg) — American Homes 4 Rent, the second-largest single-family landlord in the U.S., has selected Goldman Sachs Group Inc. to arrange a bond backed by rental home payments, less than three months after Blackstone Group LP (BX) completed the first sale of its type.”

D.R. Horton Soars After Reporting Strong January Sales
“D.R. Horton Inc. (DHI), the largest U.S. homebuilder by revenue, rose the most in a year after reporting that it’s charging more for houses and that sales are strengthening heading into the busiest season for demand.”

MBA President and CEO David Stevens Comments on The State of the Union
“David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), today issued the following statement…”

Mortgage Applications Essentially Flat in Latest MBA Weekly Survey
“WASHINGTON, D.C. (January 29, 2014) — Mortgage applications decreased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 24, 2014.”

Senate Breaks Filibuster on Flood Insurance Bill
“The Senate voted late Monday to advance a bill that would prevent insurance premium hikes in many flood-prone areas that could discourage home sales and disrupt real estate markets.”

Higher rates loom for some modified mortgages
“Homeowners who got government loan modifications during the financial crisis will begin to see monthly payments rise this year, government report says.”

CFPB Director Richard Cordray just told off the House Financial Services Committee
“Consumer Financial Protection Bureau Director Richard Cordray appeared before the House Financial Services Committee this morning for his Semi-Annual Grilling (I mean Report) before Congress.”

New argument emerges in mortgage fee debate
“A new argument has emerged in the debate over Kansas counties’ mortgage registration fees the day before hearings on a bill to repeal such fees.”

Durable goods orders stumble, but consumers perk up
“(Reuters) – Orders for long-lasting U.S. manufactured goods unexpectedly fell in December as did a gauge of planned business spending, casting a shadow on an otherwise bright economic.”

Why financial data security is the next hot button issue
“Data security breaches at Target, Neiman Marcus and other retailers do more than jeopardize the financial well-being of consumers, they also red-flag what could very well be the next hot-button banking topic in Congress and raise the issue of how many firms collect this data while lacking the appropriate systems to protect it.”

Top 10 cities to avoid natural disasters, unless you count blizzards
“Natural disasters have dominated the news in the last few years, with tornados, earthquakes, hurricanes and floods devastating lives and homes across the country. Which makes us wonder — where are the safest places to live?”

Home prices flattening in the county
“San Diego County home prices were nearly flat from October to November, but are still up 18.7 percent over the year, the S&P/Case-Shiller Home Price Index showed Tuesday.”

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Real Estate News 1.28.2014

Plan to downsize your home? Don’t wait
“Moving to a smaller home in later life is a lot like starting a diet: It sounds like a good idea – but one that can always wait until tomorrow. In most cases, though, retirees can benefit from downsizing sooner rather than later.”

New-home sales fade in December after best year in five
“WASHINGTON (MarketWatch) — Sales of new single-family homes fell in December, but the whole of 2013 saw the highest sales level in five years, the government reported Monday.”

How spending has fallen under Obama
“It’s unlikely that President Obama will ever shake his reputation among Republicans as a big spender. But a key fact counters that rap.”

African-Americans squeezed out of the housing market
“More African-Americans are being squeezed out of the housing market.”

Will Real Estate Investing Slow In 2014?
“There’s little doubt that the real estate marketplace is in the midst of change. The huge price run-up seen during the past year or so is plainly cooling, interest rates have risen from the record lows seen in 2012 and higher prices may be causing some institutional investors to slow their purchases.”

Will Mortgage Tax Relief Die In 2014?
“An important law which has eased the financial fall-out from the mortgage crisis has ended. The Mortgage Forgiveness Tax Relief Act expired on New Year’s Eve and unless the legislation is extended large numbers of troubled borrowers will suddenly face huge new taxes.”

Rental house owners can profit from a professional manager
“It’s one thing to manage a rental house when it’s nearby. But it’s another process entirely when the rental is in a distant vacation retreat. Unfortunately, many second-home buyers find that out the hard way.”

Home prices show signs of topping out
“Home prices are showing signs of topping out: The S&P/Case-Shiller index posted its first month-over-month decline in 10 months on Tuesday.”

Home prices: Your local forecast
“After 2013’s big gains, home prices are expected to moderate this year. CoreLogic Case-Shiller expects prices to increase by the mid-single digit percentages for the 12 months through September. See how your market is expected to fare.”

Many renters just say no to buying homes
“(Reuters) – With a wife and a 10-year-old daughter, Matthew Amster-Burton appears to be one of the likelier people to buy a house, but the Seattle food writer says he has no interest in doing so.”

What business expects in the State of the Union
“President Barack Obama will likely talk about improving the broad U.S. economy as well as bolstering specific sectors when he gives his State of the Union speech on Tuesday night. Trade groups around Washington are hoping for a coveted mention, and some are confident the president will talk about working with their industry.”

Yellen Faces Test Bernanke Failed: Ease Bubbles
“Janet Yellen probably will confront a test during her tenure as Federal Reserve chairman that both of her predecessors flunked: defusing asset bubbles without doing damage to the economy.”

Wall Street Bond Dealers Predict Plunging Treasury Sales
“The U.S. will borrow less money this year than at any time since 2008, validating the nation’s decision to go deeper into debt to combat the financial crisis as faster growth shrinks the deficit, Wall Street’s biggest bond dealers say.”

Banks ‘Chase’ Mortgage Loans With Mobile Apps for Home Buyers
“Not long ago, a financial institution couldn’t easily target consumers who were shopping for a new home. But with new online and mobile tools available today, banks and credit unions can be on the front edge of the mortgage application process.”

How QM fails to deliver
“Although the Qualified Mortgage and ability-to-repay rules are designed to halt excessively risky lending, the new guidelines are likely to fall short on risk restraint when comparing their reality to the expectations of the Consumer Financial Protection Bureau, said Ed Pinto, resident fellow and co-director of the American Enterprise Institute’s International Center on Housing Risk.”

FHA Turns to Residual Income Test to Qualify Borrowers
“The Federal Housing Administration has elected to use the Department of Veterans Affairs’ residual income test as a new compensating factor to qualify borrowers with high debt-to-income ratios.”

New home sales fall, but private sector expands
“(Reuters) – Sales of new U.S. single-family homes fell more than expected in December, but lean inventories and steady price gains suggested the housing market recovery remained intact.”

Is this what’s holding back the RMBS market?
“What is the state of the residential mortgage-backed securities market going into 2014?”

Fixed-rate mortgages tumble in popularity
“Adjustable-rate mortgages are gaining in popularity with interest rates on 30-year, fixed-rate mortgages trending higher these days.”

We couldn’t believe which states have the most late mortgages
“Black Knight Financial Services says December was a good month for foreclosures in its latest report.”

JPMorgan reportedly selling $373M prime new issue RMBS
“JPMorgan Chase (JPM) told HousingWire.com the bank will decline comment on a Bloomberg news item suggesting the lender is about to sell $373 million prime new issue residential mortgage-backed securities.”

This Detroit Neighborhood Is So Bad That $1 Homes Could Be A Rip-Off
“Downtown Detroit is seeing a revitalization of sorts sparked by Dan Gilbert’s $1 billion investment in the area. Since 2010, Gilbert’s investment has created an estimated 6,500 jobs in downtown, and, as a result, it’s nearly impossible to find a vacant apartment as residential occupancy rates reached as high as 99.4% for the downtown area.”

Latest Real Estate Numbers Give Reason to Hope
“Housing price data for November, fresh out of the oven, shows dazzling year-over-year gains but a slowing in month-to-month prices. The S&P/Case-Shiller Housing Price Index that’s a composite of 20 metro areas jumped 13.7% year-over-year, beating even the past two month’s 13.3% and 13.6%. The continued march upward will certainly hearten housing bulls, as prices are currently only 20% off their bubble peaks of Spring/Summer 2006. Separately, last week the National Association of Realtors reported that volume was good, with 5.09 million homes sold in all of 2013. In addition to crossing the psychological barrier of the 5 million mark, that’s a 9.1% jump from the year before.”

Tax Geek Tuesday: Why You Should Never Hold Real Estate In A Corporation?
“Sometimes in life, when faced with a given situation, we say things simply as a matter of reflex. For example:”

Sold! The 2013 real estate year in review
“Historically low interest rates and limited inventory in 2013 fueled some of the greatest housing appreciation in San Diego County since the early 2000s.”

Living at home generation: a modern day feudalism awaits young Americans as the prospect of homeownership falls out of grasp.
“The prospect of homeownership for many young Americans seems so far out of reach that many are resigned to be renters for the rest of their lives.  In places like San Francisco and New York even those with decent paying jobs will find it hard to own a piece of real estate.  Obviously many investors with easy money from the Fed realized this end-game and dove into the landlord business with all the gusto in the world.  Wages are weak for the children of baby boomers.  Many in fact are back living at home.  Homeownership seems like a massive pipedream when many don’t even have the income to support a rental.  Of course in California, you have odd inter-family dynamics where some kids are just waiting until the parents keel over so they can inherit the Prop 13 protected World War II built property.  What more do people expect from a narrow focus on the present while ignoring the challenges facing a new generation of Americans?  This structural change has also created a big hit on new home sales.  Unfortunately for many a modern day system of debt serfdom awaits.  For those that have the chance to buy, it may require a massive leap into debt on top of the student debt many already carry.”

Delinquencies Down Nearly 10% in 2013
“Delinquencies picked up slightly in December, according to early data released by Black Knight Financial Services (BKFS)—but overall trends indicate 2013 was a year of improvement.”

FDIC Marks Second Bank Collapse of 2014
“FDIC announced the closure of an Oklahoma bank over the weekend, marking the first insured collapse in the Sooner State in more than a year and a half.”

Federal To Taper Stimulus Again
“The Federal Reserve is scheduled to announce the second cut in its bond-buying program in six weeks as a lackluster December jobs report failed to diminish the central bank’s expectations for solid U.S. economic growth, according to The Wall Street Journal.”

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Real Estate News 1.24.2014

7 setbacks for the middle class
“Five years into his presidency, Barack Obama is still falling short of his number one goal: to fix the economy for the middle class.”

Will Obama push housing reform in SOTU? — Not expected this year, but momentum matters — Lew live from Davos
“WILL OBAMA PUSH HOUSING REFORM IN SOTU? — POLITICO’s Jon Prior and Kate Davidson preview the big speech next week: “President Obama will deliver his State of the Union address on Tuesday and in the world of finance there is one question that keeps popping up: Will he mention Fannie Mae and Freddie Mac? In August the president laid out his case for getting rid of the taxpayer-owned mortgage giants and putting in place a new housing finance system. But the administration has mostly been quiet since. Obama could change that by calling for an overhaul of the mortgage market Tuesday night.”

Lenders vocal about negative impacts of Dodd Frank mortgage rule
“Daniel Weickenand, CEO of Memphis-based Orion Federal Credit Union, has testified on behalf of the National Association of Federal Credit Unions that federal mortgage rules that went into affect Jan. 10 could hurt consumers’ ability to access credit and ‘hamper the ability of credit unions to meet their members’ needs.'”

Leading Indicators Rose in December as U.S. Economy Improved
“The index of U.S. leading indicators rose in December, a sign the world’s largest economy is poised to keep expanding in 2014.”

FHFA: Home Price Appreciation Almost Flat In November
“More evidence that home price appreciation is stabilizing: U.S. home prices increased only 0.1% in November, on an adjusted basis, compared to October, according to the Federal Housing Finance Agency’s (FHFA) monthly House Price Index (HPI).”

Rent-to-Own: New Mortgage Rules Can Make This More Appealing
“New mortgage underwriting criteria went into effect Jan. 10 requiring a debt-to-income ratio of less than 43 percent for most qualified mortgages. Even if you don’t qualify for a mortgage under the current lending regulations, renting may not be your only option. Alternatives such as rent-to-own and contract-for-deed transactions make homeownership possible for those who may not meet mortgage-underwriting standards.”

Are rental bonds driving up the rent?
“Bonds backed by rental payments may be gaining investor attention, but they’ve also caught the eyes of a few critics along the way.”

Builders unscathed by rising loan limits
“Despite the Federal Housing Administration (FHA) reducing the maximum loan limits for mortgages written in certain parts of the country, the adjustment has had little real impact on home builders.”

Taking smaller bites, Freddie Mac pursues FHFA mandate
“Freddie Mac released its monthly-volume summary report Friday, and it shows the aggregrate unpaid principal balance of the GSE’s mortgage-related investments portfolio declining by $5.7 billion in December.”

ABS Vegas: Love or hate REO-to-Rental in 2014
“The REO-to-Rental model is the newest asset to gain investors’ attention, but what does the future look like for these particular deals?”

Buying a Home? Bring a Suitcase Full of Cash: Ritholtz Chart
“The chart above comes form the RealtyTrac Residential & Foreclosure Sales Report. It should come as no surprise that as rates rise, so too do all-cash purchases.”

Gundlach Counting Rotting Homes Makes Subprime Bear
“For Jeffrey Gundlach, the U.S. housing recovery isn’t so rosy.”

Stable real estate prices hide big changes in many city neighborhoods
“It felt like 2013 was a crazy year for real estate, with the flood of all-cash buyers, Billionaire’s Row on 57th St., shrinking inventory and skyrocketing prices.”

Real Estate Gobbled Up By Investors Worries Inland Empire Congressman
“A congressman who represents several Riverside County communities wants officials to look into whether the rise of investor owned properties in the area is creating an ‘unsustainable bubble that will wreak havoc when it bursts.'”

Born here? You’ve already struck it rich
“The American dream of climbing the income ladder is alive and well, according to new research on income disparity. But a lot these days depends on where you grow up.”

Decline in Foreclosures Outpaces Decline in Loan Modifications
“An estimated 44,000 homeowners received permanent loan modifications from mortgage servicers during the month of November under both proprietary servicer programs and the government’s Home Affordable Modification Program (HAMP), HOPE NOW reports. While that total represents a 12 percent decrease from the 50,000 loan mods completed in October, the most recent data show a steeper 20 percent decline in foreclosure sales and a 17 percent decline in foreclosure starts between October and November.”

Economists Outline What to Watch for in the Real Estate Market of 2014
“Experts at Freddie Mac and Equifax expect falling unemployment and economic growth to keep the housing market steady in 2014. This, despite climbing interest rates and anticipated growth in housing prices nationwide.”

Despite Fewer Foreclosure Starts, Distressed Sales Rose in 2013
‘Despite declining foreclosure starts over the year, distressed sales made up a higher percentage of overall home sales in 2013 than they did the previous year, according to the U.S. Residential & Foreclosure Sales Report released Thursday by RealtyTrac. The report also revealed an uptick in cash purchases at the close of the year.”

Recovery Expected to Enter ‘Middle Innings’ in 2014
“While the housing market is still far from “normal,” it is inching that way, according to a report released Thursday from Zillow. Last year’s skyrocketing home price appreciation, frenzied demand from investors, and high tide of negative equity are all expected to subside somewhat this year, according to the real estate company.”

Freddie Mac Issues Monthly Volume Summary for December 2013
“MCLEAN, VA–(Marketwired – Jan 24, 2014) – Freddie Mac (OTCQB: FMCC) today issued the company’s Monthly Volume Summary for December 2013.”

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Real Estate News 1.23.2014

Home sales hit 7-year high as prices also climb

“WASHINGTON (MarketWatch) — The pace of home sales rose in December, pushing 2013’s tally to the highest level in seven years as an improving economy and pent-up demand boosted demand, according to data released Thursday.”

Top 10 mortgage tips for 2014

“The clock is ticking for buyers and homeowners who want to grab a low mortgage rate in 2014. But if you stay on top of your game, keep your finances in order and act quickly, you can still grab attractive mortgage deals.”

10 hottest housing markets for 2014

“From Oakland, Calif., to Memphis, Tenn., these major metro areas are expected to see the biggest increase in home prices this year, according to CoreLogic Case-Shiller’s latest home price forecast.”

Buyers flocked to foreclosures last year — and many paid all cash

“Bargain hunters scooped up more foreclosed homes in 2013 — and many of them paid all cash.”

Housing Recovery Enters ‘Middle Innings’

“Zillow, Seattle, said national home values finished 2013 on a high note but cautioned that markets have already begun to show signs of a slowdown that could continue through this year.”

Longer foreclosures squeeze investor profit

“Fitch Ratings sent a note today warning that extended foreclosure timelines are increasing the severity of losses in residential mortgage-backed securities.”

Housing looks sunny with scattered clouds

“Although 2014 brings more forecasts of improvement for the housing market, this sunny forecast is not guaranteed to reach all top housing markets.”

ABS Vegas: No housing bubble to see here

“Dispatches from ABS Vegas 2014, being put on by The Structured Finance Industry Group and Information Management Network:”

It’s time to fight over the debt ceiling again

“The U.S. Treasury is likely to exhaust all extraordinary measures to fund the government if members of Congress fail to raise the nation’s debt ceiling by the end of February, Treasury Secretary Jack Lew warned in a letter to the House of Representatives Monday.”

Fixed Mortgage Rates Move Lower for Second Consecutive Week

“MCLEAN, VA–(Marketwired – Jan 23, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates drifting slightly lower for the second consecutive week amid recent reports that inflation remains subdued.”

Baby boomers key to robust real estate market

“‘Build it and they will come.’ That phrase had characterized Clark County’s real estate market for decades. But are we ready to build the housing that will meet the needs of those who help drive the local market: the baby boomers?”

RIVERSIDE: Rising rent, falling income widens affordability gap

“The pool of people who rent their residences has gotten larger in Inland Southern California, and the income gap to pay rent and make home ownership possible has gotten wider, a new report by U.S. Rep. Mark Takano suggests.”