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Posts Tagged ‘first quarter’

New FHA Proposal could Cost Lenders more

August 15th, 2013 Comments off

It will more expensive for lenders to do business with the Federal Housing Administration (FHA) if a new method for determining lenders’ liability for poorly written loans that default is adopted. Currently, when defects are discovered lenders have to eat the losses on those loans. Under the new proposal, FHA would conduct a sampling of loans, determine the percent that have underwriting errors, extrapolate that number to the portfolio and the lender than pays an “estimated total risk” to FHA. Phillip Schulman of K&L Gates law firm, and a former lawyer with HUD, says, “If this goes through, it means it will be a lot more expensive to be an FHA lender. If a lender runs the risk that every time he makes a mistake it will be multiplied against his entire portfolio, he has to be very cautious.” In June 2013, of 6,251 loans FHA reviewed from the first quarter, only 19 percent had no mistakes, while 44 percent were unacceptable, and 37 percent were deficient, according to nationalmortgagenews. In addition, if the percent of loans with defects crosses a particular line, MHProNews has learned it would automatically trigger more scrutiny.

(Image credit: hansafx)

Housing Market Improves; Policy Challenges Await

August 13th, 2013 Comments off

Housing affordability slipped nationwide as home prices in recovering markets rose during the second quarter, according to the National Association of Home Builders (NAHB) Wells Fargo Housing Opportunity Index (HOI). Of all new and existing homes sold in the first quarter of 2013, 73.7 percent were affordable to families earning the U. S. median income of $64,400. In the second quarter that ended in June, 2013, that number had dropped to 69.3 percent, as MHPronews has learned. Says NAHB Chief Economist David Crowe, “Rising home prices signal the improving health in housing markets, and the median price of all new and existing U.S. homes sold in this year’s second quarter, at $202,000, was well ahead of the second quarter 2012 median price of $185,000. Together with rising mortgage rates, this contributed to affordability slipping to the lowest level in more than four years. Such movement would be less concerning were it not for ongoing discussions regarding potential changes to the mortgage interest deduction and federal support for the secondary mortgage market, both of which play enormous roles in keeping homeownership affordable.”

(Photo credit: Paul Sakuma/Associated Press)

Sun Communities to Offer Q2 2013 Results

July 25th, 2013 Comments off

Manufactured Housing Community owner Sun Communities, Inc. (NYSE:SUI) will release its Q2 2013 financials before the market opens Thurs., July 25, to be followed by a conference call at 11 a.m. that same morning. For the first quarter of this year revenue increased 24.4 percent over the same period last year. The company has a one-year low of $36.15, a one-year high of $57.78, and a 50-day moving average of $50.34. Sun fell -3.06 percent Wed., July 24 to close at 51.02. The dailypolitical reports Sun’s market cap is $1.887 billion and the P/E ratio is 281.44. As MHProNews knows, Sun Communities is a real estate investment trust (REIT) that owns and operates 380 manufactured housing and recreational vehicle communities comprised of 67,380 developed sites.

(Photo credit: Sun Communities, Inc.)

CFPB Sues Lender for Violating Compensation Rule

July 25th, 2013 Comments off

A mortgage lender is being sued by the Consumer Financial Protection Bureau (CFPB) for allegedly paying bonuses to loan originators that charged consumers higher interest rates in violation of the loan officer compensation rule. The 85th largest lender in the country, Castle and Cooke Mortgage LLC of Salt Lake City is said to have paid 150 loan officers quarterly bonuses ranging from $6,100 to $8,700 for leading borrowers into higher-priced loans. The Bureau

 

says loan officers who did not charge higher rates did not receive bonuses, and that 1,100 of the loans were illegal. According to what MHProNews has learned from nationalmortgagenews, C&C originated $332 million in loans in the first quarter. The lawsuit seeks restitution and civil penalties, and specifically cites company president Matthew Pineda and senior vice president Buck Hawkins. “We are taking action against the type of practices that precipitated the financial crisis,” said CFPB director Richard Cordray.

(Photo credit: top, ABCNews; bottom, HousingWire)

Equity LifeStyle Properties to Release Q2 Financials

July 23rd, 2013 Comments off

Chicago-based, land lease community operator Equity LifeStyle Properties (NYSE:ELS) will announce its second quarter 2013 earnings report in a conference call Tue., July 23 at 11:00 AM. In its first quarter 2013 earnings data, ELS reported revenue of $190.59, beating the consensus estimate of $177.42. According to utahpeoplespost, the revenue for the first quarter increased 5.1 percent on a year-over-year basis. As MHProNews knows, ELS is the largest operator of manufactured housing and recreational vehicle communities in North America, with 383 properties comprised of 142,682 homesites.

(Photo credit: Equity LifeStyle Properties–Lake Haven, Clearwater, Fla.)

Patrick Ind. Set to Release Financials

July 16th, 2013 Comments off

Patrick Industries, Inc., manufacturer and distributor of component parts for the manufactured housing and recreational vehicle industries will release its Q2 2013 financials before the market opens July 25, 2013. Based in Elkhart, Ind., Patrick reported a first quarter increase in revenue of 38.4 percent which produced income of $5 million. As RVBusiness informs MHProNews, that was $1 million over the first quarter of 2012.

(Image credit: Patrick Industries, Inc.)

Consumer Sentiment Rising

June 28th, 2013 Comments off

A survey released today (June 28) indicated consumer sentiment among higher-income families nearly rose to its highest level in six years, hitting 84.1 in late June, 2013, just below the 84.5 six year high in May. Economists surveyed by Reuters had forecast 82.8 for June, as MHProNews has been informed by rvbusiness. Since consumer spending accounts for 70 percent of the national economy, some analysts base their judgments on the optimism (or not) of consumers about the economy. Survey director Richard Curtin says, “Consumers believe the (economic) recovery has achieved an upward momentum that will not be easily reversed.” Consumer spending in the first quarter grew at an annualized rate of 2.6 percent, faster than the 1.8 percent in Q4 2012, but below the government prediction of 3.4 percent growth.

(Image credit: photobucket)

Manufactured Housing Numbers Climb in Iowa

June 26th, 2013 Comments off

In 2012 Iowa retailers ordered 271 HUD Code manufactured homes, well below the years from 1964 to 1982 and 1988 to 2002 when orders ran over 1000 annually, but 28 percent higher than the 212 ordered in 2011, according to Joe Kelly, executive vice-president of the Iowa Manufactured Housing Association. Numbers are up for the first third of this year as well: 88 HUD Code homes have been ordered through April, compared to 51 for the same period in 2012. 90,036 homes have been ordered over the 52 years from 1961 to 2012 for an average of 1,731 homes annually. Iowa retailers brought in 95 modular homes in Q1 2013, down slightly from 98 for the same time period last year. However, modular homes comprised six percent of single-family building permits in Iowa for the first quarter, in fourth place behind N. Dakota (19.4%), Maine (19.2%), and New York (7.2%). Meanwhile, as MHProNews has learned, the creation of a revolving loan program to assist purchasers of manufactured homes and administered by the Iowa Finance Authority passed the Iowa House but did not make it through the Senate.

(Image credit: Wikipedia)

Home-building Spurring Gross Domestic Product

June 17th, 2013 Comments off

As of April 2013, home building employment totaled 2.1 million people, up nearly 100,000 in the last year, according to the labor department. Home building contributed 20 percent to the growth of the Gross Domestic Product (GDP) in the last six quarters. Residential Fixed Investment (RFI), the home building component of the (GDP), measures spending on residential structures, including manufactured housing, single and multi-family homes, as well as remodeling and improvements that extend the life of the home. For the last six quarters RFI has averaged a 14 percent growth rate, as usnews has informed MHProNews. The National Association of Home Builders (NAHB) reports housing, defined as the combination of the monetary value of newly-built housing and sales of existing housing, has often accounted for 17-18 percent of the overall economy. The first quarter of 2013 saw that number at 15.18 percent.

(Photo credit: Liberty Homes–manufactured home)

Barclays: Home Prices will Rise Nearly Ten percent

June 17th, 2013 Comments off

MHProNews has learned from nationalmortgagenews that multinational banking and financial services company Barclays is predicting a 9.7 percent rise in U. S. home prices for 2013. According to the research report, the strong data for the first quarter, which exceeded expectations, indicates in 2014 house prices will rise another 7.2 percent. Barclays says housing prices have risen 11 percent year-over-year through the first quarter, 10.2 percent excluding distressed sales.

(Image credit: etftrends)