Posts Tagged ‘banks’

Home Prices Continue Rising

July 30th, 2013 Comments off

While the S&P/Case-Shiller national home price index of the 20 largest markets remains 24.4 percent below the peak of June 2006, it rose 12.2 percent in May above May 2012, the largest year-over-year increase since March 2006. April 2013 rose 12.1 percent over April 2012. A year ago homes that had been on the market for many months, even years, began selling, with prices rising each month since June 2012, and each month saw a bigger increase than the previous month. The rise in mortgage rates has yet to stem the rise in prices, which have been fed by an accompanying drop in foreclosures. Some of the markets hardest hit by the housing bubble are the ones experiencing the largest current gains: Prices in San Francisco, Las Vegas, Phoenix and Atlanta are all up more than 20% from a year ago. Some fear the housing bubble may return, according to what CNNMoney tells MHProNews. But Joseph LaVorgna, chief US economist for Deutsche Bank, says, “Affordability remains near historic highs despite the recent rise in rates and home prices. And the increase in home prices should encourage banks to ease lending standards for mortgages, since the collateral for the underlying loan is appreciating in value.”

(Image credit: etftrends)

Affordable Housing Shortage is Critical; Dodd-Frank is “Deadening”

June 13th, 2013 Comments off

According to the president of the Federal Home Land Bank (FHLB) of New York, Alfred DelliBovi says the need for affordable housing is becoming critical, especially as the availability of federal funds for housing decreases. As MHProNews has learned from nationalmortgagenews, each of the banks’ 11 districts has an Affordable Housing Program which is required to set aside ten percent of its private earnings to support housing for low income residents. He says given the state of the sluggish economy, it’s difficult for those of modest means to save enough for a down payment, and as former deputy director of the Department of Housing and Urban Development, he knows the importance of assistance. Calling the Dodd-Frank Act “deadening,” “poorly constructed” and “costly,” he says legislators pass laws telling someone else to enforce the rulings without understanding the root cause or knowing the full impact of the legislation. “Reducing risk sounds like a great idea, but if you do it to the point where business is impossible, that’s crazy,” he adds.

(Image credit: bloombergbusinessweek)

Modular Homes Rising near Baltimore

March 20th, 2013 Comments off

According to baltimoresun, while new home construction is on the rise in Harford County, MD just northeast of Baltimore, it is well below the 1,800 to 2,000 residential permits issued in the early 2000’s. In 2012 the county issued 450 residential building permits for modular homes, townhomes, apartments and condos, 240 of those for single-family dwellings. Homes that took up to 18 months to sell in 2008 are now on the market less than six months, says Jim Richardson, director of the county’s Office of Economic Development. MHProNews has learned most of the existing homes currently on the market in the county are REOs owned by banks or those going through the short sale process.

(Photo credit: merchantcircle–modular home under construction)

Returning from Default

March 11th, 2013 Comments off

CNNMoney tells MHProNews according to RealtyTrac 4.8 million borrowers have lost their homes to foreclosure since the housing bubble, and another 2.2 million let go of their homes in short sales. But many of them are coming back, and they are searching for a new place to live. Veterans Administration loans can be obtained after only two years out from foreclosure. Fannie Mae and Freddie Mac require borrowers to wait five years and have a credit score of at least 680 plus a ten percent down payment. The Federal Housing Administration’s (FHA) policy is to allow banks to lend FHA-backed loans to borrowers three years after a default.

(Image credit: mortgageorb)

Overhaul Fannie and Freddie? Why?

March 7th, 2013 Comments off

As washingtonpost informs MHProNews, while Fannie Mae and Freddie Mac have been vilified for allegedly causing the financial meltdown, for being bailed out by the government to the tune of $131 billion, and for taking business from private firms, neither the Democrats nor the Republicans are actively doing much to change the GSE landscape. While they remain for-profit entities, they are backed by the government, and despite the criticism, they were the only home finance game in town in 2009 when banks were not interested in making home loans. As Neal Irwin says, the housing collapse would have been much worse had Fannie and Freddie not been around. The reason the overhaul has not happened is because there are too many vested interests in keeping the system as it is. Accounting for 90 percent of U. S. mortgages keeps originators, servicers, lenders, banks, and builders pretty busy, not to mention the contributions from the GSEs to political campaigns.

(Image credit: Federal Housing Administration)

Bankers: CFPB Examiners Hinder Lending

January 16th, 2013 Comments off

According to Consumer Bankers Association CEO Richard Hunt, financial industry leaders and bankers are saying the Consumer Financial Protection Bureau’s (CFPB) bank examiners are inexperienced, inefficient and take up to nine months to score routine audits, which interferes with lending. As the olympian tells MHProNews, if lenders create a new product, it may be months before they find out if it is acceptable or not, often stifling innovation and lending. One critic says the banks are the training ground for examiners; another says the slow turnaround times “are a warning sign of a system that needs to be corrected.” The CFPB says it reaches out to banks with webinars and guidance manuals used by their field examiners. CFPB spokeswoman Jennifer Howard says, “While we are still working to build out and refine our supervision program, we are pleased with the progress being made and the work being done.” Jonathan Pompan, a banking attorney with the law firm Venable, says, “The CFPB went full-throttle into the field, and in some cases has yet to determine what it would view as problematic. You’ve got folks who are looking at organizations for the first time and making potentially very significant findings” that could cost them millions of dollars.

(Image credit: totalmortgage)

Inventory Drop will Add to Housing Values

January 7th, 2013 Comments off

Economist Joseph Brusuelas, writing in a Bloomberg Brief on the 2012 housing review and outlook for 2013, says, “Rising purchases of homes from cash buyers and investors reduced the monthly supply of existing homes on the market to 4.8 months in November from 6.4 months in January of 2012. Careful management of foreclosed properties by Fannie Mae and Freddie Mac and the large banks contributed to the improved supply picture in the housing market.” As MHProNews has learned, despite the continuing threat of underwater mortgages, Brusuelas points to turnarounds in the housing markets of metro areas and the strength of housing starts that will drive the appreciation of housing values.

(Image credit: HousingWire)

Investing in MHCs gets High Marks

January 1st, 2013 Comments off

NuWireInvestor tells MHProNews the image most Americans have of manufactured housing communities comes from TV shows like “COPS” or from comedians like Jeff Foxworthy which not only portrays MHCs as undesireable but by association negates the investment opportunities that may be gained by investing in a community. While many of the eight percent of Americans who live in factory-built homes have incomes in the $20,000-30,000 range, some residents of MH in California and Florida are very well heeled, including Hollywood stars. In addition, since the Dept. of Housing and Urban Development set stringent standards for the production of manufactured homes in 1976, “mobile home” is a misnomer that carries on to this day, since it costs about $3,000 to move one from point A to point B, and 99 percent of them are in the same spot as when they were first sited. Banks like loans to purchase communities because they have the lowest default rate of any type of real estate, and they are the highest-yielding asset class in commercial real estate.

(Photo credit: MHVillage–Lake Village, Nokomis, Fla.)

Fake Court Documents Bring Fraud Charges

December 28th, 2012 Comments off

SecuringIndustry informs MHProNews websites in California are selling fake documents that can be used to stall foreclosure proceedings on properties. The phony court documents claim the debt has been repaid or the trustee has been changed. Online ads claim the documents can tie up banks in administrative proceedings for years. Prosecutors are building fraud cases against four homeowners for filing phony documents, while clerks who handle filings now alert investigators . The Modesto Bee in Stanislaus County, just east of San Francisco, reviewed a website that claims its 2,600 customers have not made a mortgage payment in two years.

(Image credit: Google Images)

Testing, Testing…

December 14th, 2012 Comments off

HousingWire reports the Consumer Financial Protection Bureau (CFPB) wants banks to test run some of the mortgage disclosures for consumers required by the Dodd-Frank Wall Street Reform Act before forcing them to fully comply, an idea attractive to the market. This collaborative approach will inform consumers on making good decisions, and solicit industry input during the trial run for how best to deliver the new procedures and processes. MHProNews has learned these trial balloons with select institutions, called Project Catalyst, will also provide safe harbor during the test period for lenders. Says Rick Sharga of Carrington Mortgage Holdings, “Reaching out to practitioners to create in-market trial programs that benefit consumers and work better for financial institutions is a win/win.”

(Image credit: totalmortgage)