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Posts Tagged ‘National Association of Realtors (NAR)’

FHA loan performance and fund improving, report replete with irony for Manufactured Housing Lenders

November 19th, 2014 Comments off

projected-mmi-fund-fha-loans-credit=nationalmortgage-news-mhpronews-com-The Federal Housing Administration (FHA) recent actuarial report shows that the mortgage insurance fund is back in the black. FHA Title II loans are used for the financing of manufactured and modular homes as well as conventional housing.

NationalMortgageNews informs MHProNews that “the FHA’s Mortgage Insurance Fund reached a 0.41% capital ratio in fiscal year 2014, which ended Sept. 30, up from a negative 0.11% in the year prior. While the improvement was good news, the fund’s ratio was well below its statutory minimum of 2%.”

This report was part of Julian Castro’s recent interview with BloombergTV – which also covered the Obama Adminstrations goals for GSE reform – see the interview, linked here.

House Republicans are skeptical about the overall positive report.

We’ve heard similar rosy predictions about FHA finances for years,” House Financial Services Committee Chairman Jeb Hensarling said in a press statement. “Some in Washington are now clamoring for the FHA to lower its annual mortgage insurance premiums. But until the FHA fulfills its statutory requirement, that should be a non-starter.”

Chairman Hensarling is correct in saying there are calls for premium reductions, including from the National Association of Realtors (NAR), which said that 400,000 potential buyers were knocked out of the market in 2013 by the higher FHA premiums. Depending on loan size, analysts say the higher FHA risk premiums can cost a borrower $200-400 more monthly.

With the FHA’s MMI fund “on the path to recovery, NAR urges FHA to lower its annual mortgage insurance premiums and eliminate the requirement that mortgage insurance be held for the life of the loan,” said NAR President Chris Polychron.

Mortgage Bankers Association (MBA) President David Stevens – a professional who seems warm to manufactured housing – agreed.

FHA premiums are currently at an all-time high,” said Stevens, who was also a former FHA commissioner. “FHA needs to find the right balance so it can meet its mission and further grow its reserves by sustaining increasing volumes without being adversely selected.”

NMN’s Brian Collins, stated that “FHA endorsed nearly 566,500 forward loans in fiscal 2014, compared to 892,400 ten years ago. FHA also endorsed 40,500 reverse mortgage loans in fiscal 2014, compared to 37,800 in FY 2004.

Ironic Oversight in Facts?

What is lost these flying facts is that the CFPB in its recent report on manufactured housing lending comes off as seemingly crying foul for MH lenders charging to cover their risks and costs, while the FHA is praised by some for hiking premiums to cover risks in order for it to remain financially sound. Is that a double standard?

The Government Sponsored Enterprises (GSEs) have suggested they will lower down payments and essentially compete with FHA for the business it has traditional done. This comes at a time when FHA endorsed only some 566,500 forward loans in fiscal 2014, compared to 892,400 ten years ago.

As lending is a life-blood for all big ticket and home sales – including manufactured housing – MHProNews will continue to track such developments. ##

(Image credit: National Mortgage News)

NAR releases 2013 Profile of Home Buyers, Sellers

November 20th, 2013 Comments off

Highlights-NAR-HBS-2013lawrence_yun,_nar_chief_economist=realtor-mag-realtor-org-The National Association of Realtors (NAR) recently released its 2013 Profile of Home Buyers and Selelrs. Saint Louis Today tells MHProNews the American Dream of home ownership is alive and well. Sixty-six percent of buyers surveyed are married couples, the highest percentage since 2001. The percentage of single home buyers dropped to 25 percent, which is a drop of 7 percent in the last two years. “Single homebuyers have been suppressed the last three years by restrictive mortgage lending standards, which favor dual-income households that are more likely to have higher credit scores,” said Lawrence Yun, NAR chief economist, about the survey results. “Affordability conditions remain favorable in much of the country, but consumers need access to safe and sound financing, particularly the 30-year, fixed-rate mortgage and with low down payment options for first-time buyers.”

You can download an abridged version of the NAR 2013 Profile of Home Buyers and Sellers here. ##

(Photo credit: RealtorMag)

Rising Mortgage Rates=an Improved Economy?

September 12th, 2013 Comments off

Mortgage applications fell 13.5 percent from last week, and the 30-year fixed-rate mortgage rate rose from 4.51 percent to 4.57 percent this week, according to HousingWire. Mortgage Bankers Association (MBA) reports the Refinance Index fell 20 percent from the previous week, and 71 percent from the week of May 3. Noting refinance applications are the first to drop when mortgage rates rise, Trulia‘s Chief Economist Jed Kolko says, “Recent history shows that spiking mortgage rates take a big chomp out of refinancing immediately and smaller nibbles out of sales three months later. Longer term, the impact of rising rates is typically offset by stronger economic growth.” The National Association of Realtors (NAR) says pending home sales fell 1.3 percent in July, and that is partly seasonal, but levels are still high. As MHProNews has learned, this is the bottom line: Over the last 15 years, a rise in mortgage rates correlated with an improved economy.

(Image credit: HousingWire)

Wealthy returning, driving Million-dollar home sales up

September 2nd, 2013 Comments off

multi-million-home=posted-daily-business-news-mhpronews-com-A report from real estate research firm DataQuick reveals that U.S. home sales priced at more than $1 million are rising at three times the rate of the broader market. The journalgazette tells MHProNews that Craig Moe, who bought a $1.2 million home in June said, “When the real estate market was booming, people sat in Starbucks and talked about how much they paid for a house. Now, they talk about how little they paid and what a bargain they got.” Well-to-do buyers have often gained in the stock market’s rise since 2009 and are driving million-and-up sales, which rose an average of 37% in the first half of 2013. Sales below a million rose, but only by 11%, according to the National Association of Realtors (NAR). Sales of million-plus homes are at the highest level since 2007, while sales of less than a million dollar homes are at the best pace since 2009. ##

(Photo credit: Sterling Chase Realty)

 

Existing Home Sales Rise over Last Year

July 23rd, 2013 Comments off

While sales of existing homes slipped 1.2 percent in June from May, the National Association of Realtors (NAR) says sales rose 15.2 percent over June of 2012. The seasonally-adjusted annual rate (SAAR) fell from 5.14 million in May to 5.08 million in June. Lawrence Yun, NAR’s chief economist, says higher interest rates may have affected sales. “We’re still dealing with a large pent-up demand. However, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market.” Yun also says low inventory has held back sales, noting in June there was a 5.2-month supply at the current sales pace, a drop of 7.6 percent from a year ago. Low inventory also contributed to home price increases, MHProNews has learned from CNNMoney, as the median price rose 13.5 percent from June 2012 to $214,000, marking the 16th consecutive month prices have risen.

(Photo credit: Benzinga)

Housing Market Continues to Heat Up

June 20th, 2013 Comments off

Noting the median home price jumped eight percent from April to May to $208,000, and sales of homes rose four percent for the same period, chief economist Lawrence Yun of the National Association of Realtors (NAR) says, “The home price growth is too fast, and only additional supply from new home building can moderate future price growth.” He says there needs to be a 50 percent increase in home building to stave off another potential housing bubble. Distressed sales have dropped from 25 percent of overall sales one year ago to 18 percent, which accounts for some of the rise in rices. Sales are up 13 percent from one year ago to an average annual rate of 5.18 million homes for the month. As CNNMoney informs MHProNews, the low mortgage rates and improved housing market are attracting buyers faster than sellers are putting homes on the market. Buyer traffic has increased 29 percent from a year ago, but the inventory of homes for sale has fallen ten percent.

(Image credit: HousingWire –housing prices rising)

Housing Economists Project Positive News

May 21st, 2013 Comments off

Ahead of official forecasts by the National Association of Realtors (NAR) and the Commerce Dept., nationalmortgagenews informs MHProNews a survey of economists by Bloomberg reports new and existing home sales rose to a seasonally-adjusted-annual-rate (SAAR) of 5.41 million in April. This marks the highest number since Nov. 2009 when the first-time homebuyers tax credit expired, and third highest since Aug. 2007, right before the recession hit. The economists project sales of previously-owned homes hit 4.98 million SAAR, also the highest since Nov. 2009; and newly-built homes rose to 425,000 SAAR, a three month high. The NAR’s report on previously-owned homes is due out May 22, while the Commerce Dept. will release figures on newly-built homes the following day. The housing market’s rebound is considered the most effective spur to the economy as many other industries lag.

(Image credit: etftrends)

Pending Homes Sales Index Improves

April 30th, 2013 Comments off

MHProNews has learned from HousingWire the National Association of Realtors (NAR) says its pending home sales index (PHSI) rose 1.5 percent to 105.7 in March after sliding 0.4 percent in Feb., but the index is seven percent above the 98.8 reading in March 2012. The index is based on 2001 as the benchmark when the rating began, and equals the average level of contract activity at that time. Lawrence Yun, chief economist for NAR, predicts existing home sales will rise 6.5 to 7 percent this year, which approaches the five million mark. Regionally, the Northeast posted a PHSI rate 6.3 percent higher than March 2012, but unchanged from the previous month at 82.8. In the Midwest the number rose 0.3 percent from Feb. and 13.7 percent over last March. The South has the highest index of all at 120—it climbed 3.7 percent from Feb. to March of this year and is 13.7 percent better than March 2012. The West rose 1.5 percent March over Feb. 2013, but it is 4.3 percent lower than March 2012.

(Photo credit: Paul Sakuma/AP photo)

Measure to Clarify 3% Cap

March 14th, 2013 Comments off

NationalMortgageNews reports with the mortgage industry complaining that the qualified mortgage (QM) rule issued by the Consumer Financial Protection Bureau (CFPB) will hinder hundreds of thousands of potential borrowers from obtaining a QM loan, HR Bill 1077 clears up the three percent cap on points and fees in the QM rule. The Consumer Mortgage Choice Act is being supported by the National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA). Since points and fees on a QM cannot exceed three percent of the loan, QM loans are considered to be the least expensive and safest for borrowers. Before approving a loan, lenders have to make sure the borrower has the ability to repay it. As MHProNews has learned, low-income borrowers could suffer the most harm since it will be far less profitable to make smaller loans as opposed to larger ones.

(Image credit: HousingWire)

Cuts could Cut those Wounded even More

March 4th, 2013 Comments off

HousingWire tells MHProNews the $85 billion sequestration cuts may affect several housing initiatives, including ones aimed at low-income households and individuals. The National Association of Realtors (NAR) says the Federal Housing Administration (FHA) admitted the time frames for FHA loans may be impacted; furloughs at the Dept. of Agriculture may delay rural housing service loans. In addition, the cuts may result in 75,000 fewer households receiving foreclosure counseling. Another 125,000 may lose Housing Choice Voucher (HCV) assistance which pays for their apartment, potentially making them homeless. Further, 100,000 others residing in emergency housing programs, formerly homeless people, including veterans, could be returned to the street. The Veteran’s Administration (VA) will not be affected.

(image credit: Forbes)