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Posts Tagged ‘12 months’

Home Values Spike, especially out West

September 23rd, 2013 Comments off

Of the 30 largest metropolitan areas that the Zillow Real Estate Market report analyzes, 20 experienced annual home value increases of at least ten percent in August, the most significant of which were in California cities—Sacramento rose 34.1 percent—plus Las Vegas and Phoenix. Overall, 85 percent of the 382 markets analyzed by the report saw home prices increase 6.6 percent annually, the largest gain since July 2006 when values rose 7.6 percent. As Stan Humphries, chief economist for Zillow tells nationalmortgagenews, “Double-digit appreciation does help to lift homeowners out of negative equity, and to entice sellers into a low-inventory environment,” but this pace cannot be safely maintained. MHProNews has learned during the coming 12 months Zillow says home values will increase another 5.2 percent to $170,500.

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Moving pre-HUD Code Homes Challenging

August 6th, 2013 Comments off

While it is true that some older, pre-HUD Code homes may not be worth moving (except to the resident who cannot afford a better one), Robert Cochran, manager of Contempo Mobile Home Park in Spokane, Washington, disputes the notion that some homes are too old to be moved. While they may not be mobile, they can be moved by flatbed truck. However there are legal hurdles to towing one on highways if it was built before 1976, although that law can be waived if the home is moved because a community is closing. While WA law forbids banning homes from a community because of age, there are restrictions governing the condition of a home, and some may need to have utility systems upgraded to be accepted into new communities. In any case, state law requires homeowners be given 12 months notice in cases of a community closing, and as inlander.com informs MHProNews, the state can provide relocation assistance for low-income residents forced to move.

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Modular Housing Growing in England

August 1st, 2013 Comments off

England’s modular builder Easybase Home Limited was founded seven years ago and recently moved with its staff of 18 to a larger facility where it intends to hire up to 300 people over the next 12 months. East Lancashire designer Ian Chew spent two years designing the steel-famed brick-clad semi-detached homes for social housing provider Twin Valley Homes. Called the first of their kind, the modular homes have attracted attention from other social housing builders in the UK as well as from New Zealand, which is still facing a housing shortage from the devastating earthquake in Christ Church that hit in Feb. 2011, as MHProNews has learned. According to lancashiretelegraph.co.uk, Easybase intends to hire 20-30 young workers as apprentices immediately.

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Seriously Delinquent Mortgage Borrowers may Reduce Payments

July 2nd, 2013 Comments off

Borrowers with mortgages backed by Fannie Mae and Freddie Mac that are at least 90 days late will begin receiving offers from lenders to reduce their rates. Called the Streamlined Modification Initiative, borrowers will be able to reduce their payments by either having the loan extended from, say, 30 to 40 years, or their interest rates will be reduced—but the principal will remain. Borrowers with a high-rate loan who could not qualify for a refi during the era of ultra-low interest rates merely do a trial run of making payments three consecutive months and the modification becomes permanent. As CNNMoney tells MHProNews, other requirements include the loan must be at least 12 months old, borrowers cannot be more than 24 months in arrears and their principal balances must be 80 percent or above the value of their home. The program is set to run through Dec. 2015.

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Extending Loans to Boomers

May 27th, 2013 Comments off

The washingtonpost informs MHProNews seniors whose income does not qualify them for a mortgage or refinancing a home under current tight credit, may now have more income for purposes of underwriting: Due to a rule change by the top home lenders, borrowers may now use retirement assets to improve their debt ratio. Under mortgage giant Freddie Mac’s formula, the total amount of retirement assets is discounted by 70 percent to allow for market swings, then that number is multiplied by 360 (30 years X 12 months) to arrive at 30 years worth of monthly payments. This monthly number can then be considered income towards the house without even tapping the assets, as long as they are accessible. The revision is targeted at the baby-boomer generation entering retirement for the next 18 years at the rate of 8-10,000 a day.

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S&P Home Price Index keeps Climbing

May 1st, 2013 Comments off

CNNMoney informs MHProNews the S&P Case-Shiller index of home prices in 20 major markets rose 9.3 percent in Feb. over the last 12 months, an increase from January’s 8.1 percent rise, and the biggest gain in home prices since May 2006. Over a five-year period through May 2012, the index showed a decline almost every month, but since then the index has risen each month. Home price increases allow more people to refinance, which helps the underwater borrower. In addition, lower house payments allow borrowers to spend money on other items, which buoys the overall economy. However, analysts note even with the increase over the last 12 months, the index remains 28 percent below the index peak of 2006.

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Measures before the Texas Legislature

February 15th, 2013 Comments off

MHProNews has learned from the Texas Manufactured Housing Association (TMHA) of the four measures in the hopper of the Texas Legislature that could affect the factory-built housing industry. HB 578 would establish state regulatory authority over modular housing, a bill TMHA supports because of the losses modular producers have suffered over the years. HB 944 would allow an exemption from license requirements for selling a limited number of manufactured homes. Since current law requires an MHC owner to obtain a retail license if he/she sells just one MH in 12 months, HB 610 would provide a limited exclusion to this requirement if manufactured homes were sold in conjunction with the sale of a manufactured home community. In response to a fraudulent MH dealer whose customers may be eligible for compensation from the manufactured homeowner’s Recovery Trust fund, SB 499 would allow either a jury or bench trial to determine eligibility.

(Image credit: City of Pecos, TX)

MHARR: HUD’s New Truss Tests add Costs

January 21st, 2013 Comments off

The Manufactured Housing Association for Regulatory Reform (MHARR) reports the Dept. of Housing and Urban Development (HUD) has issued a final rule on the testing of roof trusses in high wind zones for manufactured housing, and is following some of the recommendations made by the Manufactured Housing Consensus Committee (MHCC). While HUD admits damage to homes has been reduced, MHARR asserts HUD is requiring additional testing that will lead to increased costs for the manufacturer and ultimately the consumer, thus creating another roadblock to a recovering industry. MHProNews understands while HUD is giving manufacturers 12 months to re-test existing trusses in certain wind zones, MHARR reiterates the importance of complying with the Manufactured Housing Improvement Act of 2000 by appointing a non-career administrator for the MH program. For the ruling, please click here.

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Coming Soon: QM and Servicing Rules

January 8th, 2013 Comments off

NationalMortgageNews says the Consumer Financial Protection Bureau is set to release Dodd-Frank’s Qualified Mortgage (QM) regulation Jan. 10 in Baltimore. Under the new regulation, lenders must verify assets of the consumers, and in exchange, lenders will have a legal safe harbor. A rule the CFPB has considered is in cases where the borrower has debt over 43 percent of income, or non-prime interest rates, borrowers or bondholders could sue if they thought the lender had erred on extending on the loan. Seven regional banks asked the CFPB to allow until Jan. 24, 2014 for compliance with the QM rule. The new rules on servicing define the interaction between the buyers and lenders, and reportedly will be released Jan. 17. Banks asked for compliance date of July 21, 2014 for the servicing rules. MHProNews has been informed the law allows up to 12 months for full implementation of the CFPB’s regulations.

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New Home Sales Up 15% over Year Ago

December 27th, 2012 Comments off

CNNMoney reports the Census Bureau says new home sales hit a seasonally-adjusted annual rate (SAAR) of 377,000 in Nov., an increase over Oct. of 4.4 percent and a rise of 15 percent over Nov. 2011. The highest rate of new home sales since April 2010 when the $8,000 tax credit pumped up sales, other signs indicate a burgeoning return of the housing market: Low interest rates, increased existing home sales, a drop in foreclosures, lower unemployment, and fewer available homes, which has increased home values. The median price of a new home sold in Nov. is up 14.9 percent, to $246,200, over Nov. 2011. As MHProNews noted Dec. 26, 2012, the stock prices of several leading home builders has increased substantially over the last 12 months.

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