What would you have today if you only had what you were thankful for yesterday?
------------------------------------------------------------------
G-fees, charged by Fannie Mae and Freddie Mac will rise by 30-50 basis points which is triple what we had expected. This is suppose to encourage private capital to fund the mortgage market. There will be fewer re-fi's in 2013, but more purchases due to the milllennials' buying homes.
cmlynske@housingwire.com
-----------------------------------------------------------------------------
Remember 93% of millennials' still want to own their own homes. Market to them as well as to everyone else.
----------------------------------------------------------------------------
Dr Nouriel Roubini says there are still 2.2 million homes in shadow industry in the banks ready to be foreclosed on and more in the ready to make their way down the pipeline.
-----------------------------------------------------------------------
The president of Chemical Bank more than 100 years ago said, "The fear of God. You can have (that fear) or the socialization of risk, but not both." We now have the socialization of risk. We have lost the fear of God.
-------------------------------------------------------------------
TBSWDailyShow: There is a problem with short sales being reported as foreclosures. If you, or a client, go through a short sale, have the existing lender write a letter stating that you closed a short sale. If you experience this problem, go to the Consumer Financial Protection Bureau (CFPB) and file a complaint.
Mortgage rates will stay low until we reach 6.5% unemployment or 2.5% inflation. The powers that be, Barry Habib, say that we should keep the low interest rates until at least mid 2013 before these numbers are reached.
-----------------------------------------------------------------------
Cook County, Chicago, plans to take title to foreclosed, abandoned and vacant properties. What the article didn't say is after demolishing or repairing the properties, what will the county do with them? I have a problem with government taking possession of large quantities of property. Since governments don't create jobs or wealth, this looks like the county gov't of Cook County is removing the ability of the citizens to own the land. Don't know for sure, but would sure like to have more information.
-----------------------------------------------------------------
TBSWDailyShow?
The treasury is thinking about giving loan modifications on loans of up to 125% LTV that are current on their payments. The treasury would pay private loan holders who bought the loans from Fannie or Freddie, private loan servicers, but who haven't been giving loan modifications. This could help nearly 1 million home owners. Sounds very expensive. We, the citizens, would be the ones paying for this at a time when trillions of dollars of our debt is being held by China, India, Brazil and Japan. We would need to borrow more to pay for these loan modifications. Aren't we suppose to be cutting spending? The administration is afraid that the congress will do nothing to address the problem of perfectly performing loans. (?) We would be taking money from those who do not yet have mortgages to pay for those who are not behind on their loans. This sounds crazy to me. Does anyone in Washington understand what they are doing?
-----------------------------------------------------------------------
Home sales increased 16% over a year ago. This makes 10 months in a row of rising home prices. The median price for homes sold this November was $163,750, up nearly 4% from October and almost 7% from November 2011. Rising prices are due mostly to a dwindling inventory, as the average number of homes for sale is now 29% lower than last year.-Brad Finkelstein in Origination News
-----------------------------------------------------------------------
TBSWDailyShow:
71% of those looking for homes think the market will improve. Ask your clients what they think. Whether or not they believe the market is improving, show your clients what the market is doing to encourage them to buy now. Make a presentation of the numbers and experts' opinions to prove that the market is moving up. Lumber futures have risen to a 6-yr high. Show everyone that the market is improving, both buyers and sellers or those who should be.
-------------------------------------------------------------------------
The CFPB has been targeted by Sen. Issa as "potentially a aggressive and heavy handed regulator of financial products. This is when 30% of Americans do not have adequate access to traditional financial services and 50% of all Americans could not produce $2000 within 30 days for an emergency." Yet, the CFPB threatens to restrict financial access even further. The CFPB has increased the cost of consumer credit by $1.7 billion and has depressed job creation by 150,000 jobs. This bureau could have a chilling effect on lending and thereby diminishing credit access for eligible consumers. Banks are faulting the CFPB for reducing their ability to lend and small banks are disappearing. In 1997 there were 9,143, in 2012 there are 6,263. All this regulation is making business more difficult for small businesses, which means we will all be looking at doing business with mega businesses. This translates into higher prices in all areas. The CFPB is not required to consider how their policies will affect the public. They are on track to jeopardize a full economic recovery. This came out of the Dodd-Frank bill. The House of Representatives Committee on Oversite and Government Reform condemns the CFPB in a published report on 12/4/2012.
----------------------------------------------------------------
TBSWDailyShow
-------------------------------------------------------------
HousingWire Update
Slight uptick in delinquent mortgages. The rate is now 7.12%.
Home builders saw better results than expected in 2012, according to S&P. Sales volumes and average selling prices well exceeded what was expected by the ratings service, delivering nearly 20% more homes this year compared to 2011.
sharexy
No comments:
Post a Comment