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Builder confidence falls in April

Henry Yutangco — Fri, 20 Apr 2012 04:15:36 +0000

Builder confidence in the market for newly built, single-family homes declined to 25 in April, the first decline in seven months, according to the National Association of Home Builders/Wells Fargo Housing Market Index. The decline brings the index back to where it was in January, which was the highest level since 2007.

The NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair,” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average,” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Each of the index’s components registered declines in April. The component gauging current sales conditions and the component gauging sales expectations in the next six months each fell three points, to 26 and 32, respectively, while the component gauging traffic of prospective buyers fell four points to 18.

Regionally, the HMI results were somewhat mixed in April, with the West, which includes California, remaining steady at 32.

http://www.nahb.org/news_details.aspx?sectionID=122&newsID=15221

Fast Facts

Henry Yutangco — Thu, 05 Apr 2012 04:09:59 +0000

Calif. median home price: February 2012: $266,660 (Source: C.A.R.)
Calif. highest median home price by region/county February 2012: Marin, $732,140 (Source: C.A.R.)
Calif. lowest median home price by region/county February 2012: Tehama, $85,000 (Source: C.A.R.)

Calif. Pending Home Sales Index: February 2012: 127.8, an increase from the revised 102.4 recorded in January.

Calif. Traditional Housing Affordability Index: Fourth quarter 2011: 55 percent (Source: C.A.R.)

Mortgage rates: Week ending 3/29/2012 30-yr. fixed: 3.99% fees/points: 0.7% 15-yr. fixed: 3.23 fees/points: 0.8% 1-yr. adjustable: 2.78% Fees/points: 0.6% (Source: Freddie Mac)

Website aims to stop strategic defaulters

Henry Yutangco — Tue, 27 Mar 2012 00:08:34 +0000

San Diego Union-Tribune
A California real estate agent has launched an awareness website that aims to stop strategic defaults, which are when underwater borrowers choose to walk away from their homes even though they are able to afford their mortgages.

Read the full story:
http://www.utsandiego.com/news/2012/mar/16/website-aims-stop-strategic-defaulters/

Lowering our expectations for foreclosure settlement

Henry Yutangco — Tue, 13 Mar 2012 03:05:20 +0000

The Los Angeles Times
The shortcomings of the $25-billion deal with five major banks seem to proliferate with each passing day.

Read the full story
http://www.latimes.com/business/realestate/la-fi-hiltzik-20120307,0,246162.column

Bulk sales of foreclosed homes are a bad solution for California

Henry Yutangco — Tue, 06 Mar 2012 04:02:52 +0000

The Sacramento Bee

The president of the CALIFORNIA ASSOCIATION OF REALTORS® explains why the government’s bulk sales plan for foreclosures is not the right solution for California’s housing market and economic recovery.

Read the full story

http://www.sacbee.com/2012/02/25/4289176/bulk-sales-of-foreclosed-homes.html

Consumer bureau to unveil monthly mortgage statement prototype

Henry Yutangco — Tue, 21 Feb 2012 04:25:26 +0000

The Los Angeles Times

The Consumer Financial Protection Bureau this week will unveil a prototype for a new monthly mortgage statement for consumers designed to clearly show important information from their servicer.

Read the full story
http://www.latimes.com/business/money/la-fi-mo-mortgage-statement-20120213,0,5870776.story

Investor purchases soar in January

Henry Yutangco — Fri, 17 Feb 2012 04:21:18 +0000

Sales to third parties, typically investors, rose significantly in January, according to a report by ForeclosureRadar. California saw the most activity, with investors purchasing 3,964 properties for $766.2 million. This is the fourth largest month on record in California, and the busiest since March of 2011.
Despite what appears to be significant percentage increases in foreclosure starts in California, Nevada and Washington, these increases barely offset the declines seen over the holidays. Compared with January one year ago, foreclosure starts are significantly lower.
“January’s numbers should put to rest any notion that we will see a wave of foreclosures in 2012, at least in the western states that we cover,” stated Sean O’Toole, founder and CEO of ForeclosureRadar. “Foreclosure Starts remain near record low levels, significantly lower than a year ago, when many banks still had self-imposed moratoriums in place due to the robo-signing scandal. Add to that a foreclosure timeframe of more than 8 months, and there is little chance of a wave this year even if all the banks started the foreclosure process en masse tomorrow.”
In January, foreclosure starts in California rose 15.5 percent and foreclosure sales increased 14.6 percent.

Mortgage deal could bring billions in relief

Henry Yutangco — Mon, 13 Feb 2012 23:54:57 +0000

CNN Money

On Thursday, federal and state officials announced a $26 billion foreclosure settlement with five of the largest home lenders. California is expected to receive approximately $12 billion in principal write-downs, including through short sales, over the next three years, according to the state attorney general’s office.

Making sense of the story

The deal settles potential state charges about allegations of improper foreclosures based on robo-signing, seizures made without proper paperwork.
The settlement sets up a federal monitor to oversee the process and try to prevent the challenges that tripped up many homeowners seeking help in earlier programs designed to address the housing crisis.
Most of the relief will go to those who are underwater on their homes. That relief will come over the course of the next three years, with banks having incentives to provide most of the relief in the next 12 months.
At least $17 billion will go to reducing the principal owed by homeowners who are underwater and behind on their mortgages.
Up to 750,000 other underwater homeowners who are current on their mortgages will be able to refinance their current loans at lower rates. They will not receive a reduction in principal, but with mortgage rates near record lows, they could receive substantial savings on their monthly payments.
Approximately $1.5 billion will go to homeowners who had their homes foreclosed upon between Jan. 1, 2008 and Dec. 31, 2011, and who meet other criteria. They will receive up to $2,000 each.
The five mortgage servicers that are parties to the settlement include Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, and Ally Financial (formerly GMAC).

Read the full story
http://money.cnn.com/2012/02/09/news/economy/mortgage_settlement/index.htm?hpt=hp_t1

C.A.R. issues comment letter on bulk REO sales

Henry Yutangco — Fri, 10 Feb 2012 01:00:02 +0000

This week, C.A.R. sent letters to members of Congress sharing its concerns about the disposition of Enterprise/FHA REO assets. In the letter, C.A.R. President LeFrancis Arnold states that if the program is implemented improperly, it will have a negative impact throughout California and set back the housing market.

C.A.R. understands that some cities across the country may benefit from the bulk sale of REO properties, however, the Association feels that housing regulators have not appropriately analyzed proposed pilot cities. Los Angeles and the Southern California region have been named as a potential pilot program location. However, these areas are experiencing an inventory shortage and many homes for sale, especially distressed properties, are receiving multiple bids. Removing REO inventory through a bulk sale and rental program would hurt these communities. In addition, taxpayers will lose because these REOs will be sold for less money in bulk sale than if sold as individual units.

While the nation continues to face its most difficult housing crisis since the Great Depression, C.A.R. hopes FHFA and HUD will withhold or delay the release of their REO bulk sale initiative in California’s housing market.

Read the letter

Appraisers: Fed rule has hurt our pay, borrowers

Henry Yutangco — Tue, 07 Feb 2012 01:25:24 +0000

San Diego Union Tribune

The American Guild of Appraisers is digging into a federal rule it says has driven down the quality of home valuations, negatively affecting appraiser wages along with borrowers trying to get mortgages or refinances.
Read the full story
http://www.utsandiego.com/news/2012/jan/26/appraisers-say-feds-rule-has-hurt-their-pay-homeow/