MND NewsWireMND NewsWire : Housing and Economic Newshttp://www.mortgagenewsdaily.com/channels/news/atom.aspxCommunity Server2013-05-15T12:14:00ZMost Real Estate Investors in CA Plan on Selling Inside 6 Years/05212013_california_real_estate.asp2013-05-21T16:51:44Z2013-05-21T16:51:44Z<p>
<p>Recognizing that real estate <b>investors have played a key role</b> in the state's housing market recovery, the California Association of Realtors® (C.A.R.) recently surveyed its members about their interactions with investor customers and have developed a profile of investors and their behavior.</p>
<p>Two-third of investors are following a long term strategy in investing, <b>buying and holding property</b> although three-quarters of intend to<b> hold the property for less than six years</b>. About one-quarter (26 percent) of inventors buy property in order to flip it. </p>
</p>...(<a href="http://www.mortgagenewsdaily.com/05212013_california_real_estate.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309550/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309550" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxMBA Highlights Opportunity For Private Capital Risk-Sharing With GSEs/05202013_gse_reform.asp2013-05-20T18:53:53Z2013-05-20T18:53:53Z<p>
<p>Maintaining that the <b>conservatorships </b>of Fannie Mae and Freddie Mac (the GSEs) have caused government involvement in the mortgage market to<b> balloon to unhealthy proportions</b>, the Mortgage Bankers Association (MBA) Monday released the second in a planned series of five concept papers offering its solutions. Today's paper on risk sharing follows <i>Key Steps on the Road to GSE Reform,</i> which suggests that the Federal Housing Finance Agency (FHFA) direct the GSEs to modify the Freddie Mac PC to mirror the exact structure of the Fannie Mae MBS so that these securities would be considered fungible for TBA delivery. </p>
<p>In <i>Up-Front Risk Sharing: Ensuring Private Capital Delivers for Consumers</i> MBA says a situation exists today where the <b>government is crowding out private capital </b>and blocking real competition in the market. MBA's solution to entice private capital back is for FHFA to require the GSEs to offer<b> risk sharing options</b> to lenders at the "point of sale" rather than at the back end by enhancing loans that are already on the GSEs' balance sheets. </p>
</p>...(<a href="http://www.mortgagenewsdaily.com/05202013_gse_reform.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309399/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309399" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxFannie Forecast Serves up Feast for Housing Recovery Bulls/05202013_fannie_mae_forecast.asp2013-05-20T17:31:58Z2013-05-20T17:31:58Z<p> </p>
<p>Fannie Mae's economic and strategic research team today called the <strong>housing recovery</strong> <strong>"undeterred"</strong> after it contributed 0.3 percentages points to economic growth in the first quarter. Doug Duncan, Orawin T. Velz, and Brian Hughes-Cromwick said this was the eighth consecutive quarter that housing has added to growth and the company's Economic Summary for May said recent housing indicators point to continued recovery. </p>
<p>The annualized rate of housing starts in March was over one million units for the <strong>first time since 2008</strong>, driven solely by a surge in multi-family building which more than offset a decline in single-family construction. Multi-family housing starts are now back to the levels of the early 2000s, benefitting the report says from a continuing decline in homeownership which fell again in the first quarter to 65 percent, the lowest rate since 1995.</p>
<p> </p>...(<a href="http://www.mortgagenewsdaily.com/05202013_fannie_mae_forecast.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309355/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309355" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxDelinquencies to Decrease Slightly, Price Appreciation Sustainable -FICO Survey/05202013_delinquencies_defaults.asp2013-05-20T16:49:43Z2013-05-20T16:49:43Z<p>Most risk professionals who
participated in a recent survey believe the status quo is going to prevail when
it comes to loan delinquencies over the next six months. In <strong>survey conducted</strong> in the first quarter by <strong>FICO</strong>
and the Professional Risk Managers Association (PRMIA) the respondents, 58.5 of
whom said their main area of responsibility was mortgages, were asked to
predict the <strong>path of delinquencies</strong> for seven categories of loans. A plurality expect delinquency rates to stay
the same for most loan types and few expect to see further increases... </p>...(<a href="http://www.mortgagenewsdaily.com/05202013_delinquencies_defaults.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309319/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309319" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxConsumer Mortgage Choice Act Under Fire From CRL/05172013_qualified_mortgages.asp2013-05-17T20:56:00Z2013-05-17T20:56:00Z<p> </p>
<p>The Center for Responsible Lending (CRL) has released a brief issues paper voicing <strong>objections to HR 1077</strong>, The Consumer Mortgage Choice Act. The bill currently sits in the House Financial Services Committee of which its sponsor Representative Bill Huizenga (R-MI) is a member.</p>
<p>The bill amends the <strong>Truth in Lending Act</strong> (TILA) with respect to disclosures of points and fees for so called "high cost" mortgage loans and has the following key points</p>
<ul class="unIndentedList">
<li>Excludes from the computation of such points and fees: (1) the amount of any loan level price adjustment payment set by Fannie Mae, Freddie Mac, FHA, or similar government entity, (2) any compensation paid by a mortgage originator to an employee or creditor; and (3) any e</li>
</ul>
<p> </p>...(<a href="http://www.mortgagenewsdaily.com/05172013_qualified_mortgages.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309205/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309205" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxHome Sales Would Rise 15-20 Percent With 720 FICO - NAR/05162013_economic_forecasts.asp2013-05-17T19:18:19Z2013-05-17T19:18:19Z<p>
<p>Lawrence Yun, chief economist for the National Association of Realtors® (NAR) said Thursday it might be time to "<b>dial down the credit stringency</b>." If the credit scores required for a mortgage returned to the more <b>normal levels of about 720</b> for conventional loans and 660 for FHA loans, he said, home sales could be 15 to 20 percent higher than they are. During the past four years the average scores for approved conventional loans have been in the 760 to 770 range.</p>
<p>About<b> 51 percent of renters could qualify</b> financially to purchase a home compared to 24 percent in 2005 and 33 percent in 2000. While their credit scores are unknown, "there are about 8 million more renters with the income necessary to buy a home now than in 2000, but they are choosing not to or are unable to become a homeowner" Yun said.</p>
</p>...(<a href="http://www.mortgagenewsdaily.com/05162013_economic_forecasts.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309023/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309023" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxKickback Accusations Resolved by CFPB Consent Filing/05172013_mortgage_fraud.asp2013-05-17T18:26:00Z2013-05-17T18:26:00Z<p> </p>
<p>A Texas<b> homebuilder will surrender</b> <b>more than $100,000</b> to the Consumer Finance Protection Agency under a consent order filed on Friday. Paul Taylor, a principal of Paul Taylor Homes Unlimited and Paul Taylor Corporation was accused of receiving kickbacks for referring homebuyers to Benchmark Bank and to Willow Bend Mortgage Company for their mortgages. Under the agreement Taylor is also prohibited from engaging in future real estate settlement services including mortgage origination. </p>
<p>Under the consent order, under which the respondents neither accepted nor denied the CFPB findings, the Bureau contends that Taylor and Benchmark jointly created and owned Stratford Mortgage Services and Willow Bend and Taylor created PTH Mortgage Company. Both companies, which the CFPB contends were <b>shams, operated as mortgage originators</b>. </p>
<p> </p>...(<a href="http://www.mortgagenewsdaily.com/05172013_mortgage_fraud.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309189/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309189" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxSenator on a Mission to Change the Way Short Sales Affect Credit Reporting/05172013_credit_reporting.asp2013-05-17T18:04:21Z2013-05-17T18:04:21Z<p>
<p>Senator Bill Nelson (D-FL has asked for an investigation and possible "crackdown" on the manner in which <b>short sales are impacting consumer credit files</b>. Nelson said that short sales are now often reported to the credit agencies using the same code that designates a completed foreclosure.</p>
<p>In letters sent earlier this month to Edith Ramirez, Chairwoman of the Federal Trade Commission (FTC) and Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB) Nelson called the <b>credit coding practice "disturbing"</b> and said that there are <b>key differences between a short sale and a foreclosure</b> and both have major but different implications for consumers' credit ratings.</p>
</p>...(<a href="http://www.mortgagenewsdaily.com/05172013_credit_reporting.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309178/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309178" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxCFPB Reminds Lenders of Changes to Mandatory Arbitration Provisions /05172013_cfpb_dodd_frank_rules.asp2013-05-17T17:54:24Z2013-05-17T17:54:24Z<p>
<p>The Consumer Finance Protection Agency (CFPB) reminded lenders today that new <b>Truth in Lending Act (TILA) rules</b> banning mandatory arbitration provisions go into effect on<b> June 1, 2013</b> so all documentation for new loans should be ready to go on that date. Changes to <b>Regulation Z</b> amendments relating to those provisions were contained in CFPB's final rule on loan originator compensation issued last January.</p>
<p>The changes <b>ban </b>"terms that require arbitration or any other non-judicial procedures to resolve any controversy or settle any claims arising out of the transaction" for any closed in loan secured by a dwelling. </p>
</p>...(<a href="http://www.mortgagenewsdaily.com/05172013_cfpb_dodd_frank_rules.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/309126/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=309126" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxHousing Bubble Unlikely, Home Price Appreciation Should Slow - CoreLogic/05162013_corelogic_case_shiller.asp2013-05-16T17:15:15Z2013-05-16T17:15:15Z<p>
<p>CoreLogic said today that home prices are projected to<b> increase 3.9 percent</b> on an annualized basis between the fourth quarter of 2012 and the same quarter in 2017. However, a <b>new housing bubble is not likely</b> as market dynamics shift for both supply and demand. Prices rose 7.3 percent in 2012.</p>
<p>The CoreLogic Case-Shiller Index report notes that the increase in 2012 was the <b>strongest rate of appreciation in nearly seven years</b> and projected that prices will continue to improve in 2013 and beyond in the more than 380 U.S. markets it tracks. The company's current analysis says that, "Cities at epicenter of housing bubble/crash are clocking highest rate of appreciation, largely driven by investor demand."</p>
</p>...(<a href="http://www.mortgagenewsdaily.com/05162013_corelogic_case_shiller.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/308956/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=308956" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxHousing Starts Fall 16.5 percent, Permits up/05162013_permits_and_starts.asp2013-05-16T13:51:00Z2013-05-16T13:51:00Z<p> </p>
<p>The U.S. Census Bureau and the Department of Housing and Urban Development said today that new <b>housing starts</b> were down in April by <b>16.5 percent</b> compared to March. Construction began on privately owned residential units at a seasonally adjusted annual rate of 853,000 compared to the revised March estimate of 1,021,000. The original March figure was estimated at 1,036,000 units. April starts were <b>13.1 percent higher</b> than a year earlier when construction was started on 754,000 units. </p>
<p><b>Single-family construction</b> was begun at a rate of 610,000 units, down 2.1 percent from the March rate of 623,000. Starts in buildings with five or more units was <b>down 38.9 percent</b> to a rate of 234,000 units compared to 376,000 in March.</p>
<p> </p>...(<a href="http://www.mortgagenewsdaily.com/05162013_permits_and_starts.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/308933/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=308933" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxCalifornia Home Prices Soaring on Falling Supply, Pent-up Demand/05162013_california_home_sales.asp2013-05-16T13:03:26Z2013-05-16T13:03:26Z<p>The <b>median price of homes in California
</b>topped $400,000 in April for the first time in five years. The California Association of Realtors®
(C.A.R.) said the increases are fueled by high demand and tight inventories of
available homes.</p>
<p>Completed <a href="/data/home-sales-existing.aspx">existing home sales</a> in the
state were at a seasonally adjusted annual rate of 423,510 units in April, up
1.3 percent from a revised 417,880 in March.
Sales were lower however than a year earlier, down 3.7 percent from the
annual rate of 439,770. </p>
<p> "California's housing market maintained its
momentum in April, getting the <b>spring home-buying season off to a good start</b>,"
said C.A.R. President Don Faught...</p>...(<a href="http://www.mortgagenewsdaily.com/05162013_california_home_sales.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/308904/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=308904" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxBuilders Look to Fill Supply Void Left by Declining Foreclosures/05152013_realtytrac.asp2013-05-16T12:59:17Z2013-05-16T12:59:17Z<p>"Nationwide and in most markets it
appears <b>builders are planning to ramp up activity</b> that will help <b>offset a drop
in foreclosure starts</b>, but there are some markets where a jump in both <a href="/data/housing-permits.aspx">building
permits</a> and foreclosure starts in the first quarter indicate the scales will
tip more heavily in favor of supply of homes for sale in the coming months -
both new homes and foreclosures," said Daren Blomquist, vice president at
RealtyTrac. "On the other <b>extreme </b>there are some markets where both building
permits and foreclosure starts are down dramatically, indicating that there will
be no reprieve from the shortage of homes for sale in those markets in the near
future."</p>...(<a href="http://www.mortgagenewsdaily.com/05152013_realtytrac.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/308837/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=308837" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxForeclosure Prevention Outnumbered Foreclosures 2 to 1 in First Quarter/05152013_hope_now.asp2013-05-15T19:58:41Z2013-05-15T19:58:41Z<p>
<p>Nearly a quarter<b> million homeowners</b> received mortgage loan <b>modifications </b>through HOPE NOW during the first quarter of 2013. The voluntary private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors operating under that name modified about 203,000 mortgages through proprietary programs and 42,157 through the Home Affordable Modification Program (HAMP). </p>
<p>There were approximately <b>84,000 short sales</b> transacted through HOPE NOW in the first quarter, a <b>reduction of 22,000</b> from the fourth quarter. Since HOPE NOW began tracking the statistic in December 2009 it has arranged 1.23 million short sales. </p>
</p>...(<a href="http://www.mortgagenewsdaily.com/05152013_hope_now.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/308802/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=308802" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspxCredit Unions Plan on Scaling Back non-QM Mortgages/05152013_qualified_mortgages.asp2013-05-15T19:44:59Z2013-05-15T19:44:59Z<p>Nearly half of members responding to a National
Association of Federal Credit Unions <strong>survey </strong>say they are already <strong>planning to drop
loans from their product line</strong> that do not meet Qualified Mortgage (QM)
guidelines. Members were asked about a
range of impacts anticipated under new Dodd-Frank Act rules being implemented
by the Consumer Financial Protection Bureau in a survey conducted for the May <i>Economic and CU Monitor.</i></p>
<p>Respondents said they were getting a
<strong>head start on complying</strong> with the new Ability-to-Repay/QM mortgage rule. A large majority, 92.9 percent, said they
have seen regulatory burdens rise under the rule and 88.1 percent reported
increasing compliance costs...</p>...(<a href="http://www.mortgagenewsdaily.com/05152013_qualified_mortgages.asp">read more</a>)<p><div style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"><strong>Forward this article via email:</strong> <a href="http://www.mortgagenewsdaily.com/channels/308762/3/forward.aspx" style="color:#3333CC;">Send a copy of this story</a> to someone you know that may want to read it.</div></p><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=308762" width="1" height="1">jpatswansonhttp://www.mortgagenewsdaily.com/members/jpatswanson/default.aspx