Source: Housingwire
By Jon Prior
There are more underwater borrowers than CoreLogic ($20.08 -0.02%) previously reported after revising its valuation methods, but the number is on the decline.
Roughly 11.4 million borrowers owe more on their mortgage than their home is worth as of March 31, or 23.7% of the entire market, according to the new report. This dropped 5.7% from the revised 12.1 million in negative equity at the end of last year, which was more than a quarter of all homeowners.
CoreLogic previously reported 11.1 million underwater borrowers in the fourth quarter, based on the old model. The new methodology selects the most appropriate automated valuation model for a market and adjusts it to current sales activity.
The analytics firm also limited the amount of properties to those valued between $30,000 and $30 million to reduce highly fluctuating estimates in the old model.
Of those in negative equity during the first quarter, nearly 2 million are only 5% underwater, meaning if home prices continue increasing over the next year, they could rise into positive equity based just on a recovering market.
But roughly 11% of the negative equity borrowers are severely underwater, meaning they owe more than 25% more on the mortgage than the home is worth.
The Federal Housing Finance Agency continues to deliberate on whether to allow Fannie Mae and Freddie Mac to participate in a principal reduction program from the Treasury Department, but it would only cover roughly 700,000 underwater borrowers at the very most.
More servicers are using principal reduction on modification in order to combat the negative equity problem that keeps many borrowers from selling their home and drives some to strategically default.
As a percentage of the mortgage market, the 23.7% of borrowers who are underwater, is the lowest level since early 2009, according to CoreLogic revised data. Markets such as Nevada, where 61% of the borrowers are still underwater, are showing the fastest signs of recovery.
"This is a meaningful improvement that is driven by quickly improving outlooks in some of the hardest hit markets," said CoreLogic Chief Economist Mark Fleming. "While the overall stagnating economic recovery will likely slow housing market recovery in the second half of this year, reducing the number of underwater households is an important step toward reducing future mortgage default risk."
URL to original article: http://www.housingwire.com/news/amount-underwater-borrowers-decline-1q
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, July 12, 2012
Wednesday, July 11, 2012
Electric rates not falling along with fuel costs
Source: The Business Journal
(AP) —
A plunge in the price of natural gas has made it cheaper for utilities to produce electricity. But the savings aren't translating to lower rates for customers. Instead, U.S. electricity prices are going up. Electricity prices are forecast to rise slightly this summer. But any increase is noteworthy because natural gas, which is used to produce nearly a third of the country's power, is 43 percent cheaper than a year ago. A long-term downward trend in power prices could be starting to reverse, analysts say. "It's caused us to scratch our heads," says Tyler Hodge, an analyst at the Energy Department who studies electricity prices. The recent heat wave that gripped much of the country increased demand for power as families cranked up their air conditioners. And that may boost some June utility bills. But the nationwide rise in electricity prices is attributable to other factors, analysts say: — In many states, retail electricity rates are set by regulators every few years. As a result, lower power costs haven't yet made their way to customers. — Utilities often lock in their costs for natural gas and other fuels years in advance. That helps protect customers when fuel prices spike, but it prevents customers from reaping the benefits of a price drop. — The cost of actually delivering electricity, which accounts for 40 percent of a customer's bill on average, has been rising fast. That has eaten up any potential savings from the production of electricity. Utilities are building transmission lines, installing new equipment and fixing up power plants after what analysts say has been years of under-investment. This may reverse what has been a gradual decline in retail electricity prices. Adjusted for inflation, the average retail electricity price has been drifting mostly lower since 1984, when it was 16.7 cents per kilowatt-hour. "The ratepayer is going to have to foot the bill," says David Wright, vice chairman of the South Carolina Public Service Commission and president of the National Association of Regulatory Commissioners. The average U.S. residential electricity price is expected to be 12.4 cents per kilowatt hour for the June-to-August period, up 2.4 percent from the same time last year. For the full year, electricity prices are expected to rise 2 percent. In a typical summer month, that would mean an extra $3 on a residential bill, which includes the cost of generating the power and delivering it to a home, plus local taxes and fees. Electricity pricing is complicated, and it differs from state to state. In states where power providers are allowed to compete, such as Texas, Pennsylvania and New York, customers can shop around for cheaper electricity, although delivery charges are still set by regulators. Natural gas has plummeted in price because of a dramatic increase in U.S. gas production over the past few years and a warm winter that allowed supplies to build up. Even though coal accounts for 38 percent of all power produced in the U.S., natural gas plays an outsized role in determining the price of electricity. The price paid for electricity from the last power plant fired up to meet demand at any given moment is what sets the wholesale price for a given region. And since gas-fired power plants are usually the most expensive, they tend to be fired up last. Cheaper natural gas has led to lower wholesale power prices. Power companies operating in states with competitive markets, such as Exelon Corp. and NRG Energy Inc., have seen profits and stock prices tumble along with wholesale prices. Those operating in more regulated power markets, such as Southern Co. and Dominion Resources Inc., have fared much better because their rates don't fluctuate as much. The lower wholesale prices have made it through to some customers' bills, and others could see a temporary dip next year. At the very least, analysts say, the drop in natural gas prices is keeping electric rates from rising faster than they otherwise would have. Customers could still get a break this summer — if not on their electric rates, then at least from Mother Nature. This summer has gotten off to a scorching start in much of the country and is expected to be hotter than normal. But it isn't expected to be as hot as the last two summers, according to Matt Rogers at Commodity Weather Group, which provides forecasts for the energy industry. Don't get too excited, though. The Energy Department's Hodge calculates that if the summer forecast holds true, customers will save an average of $5.95 per month.
URL to original article: http://www.thebusinessjournal.com/news/national/2515-electric-rates-not-falling-along-with-fuel-costs
For further information on Fresno Real Estate check: http://www.londonproperties.com
A plunge in the price of natural gas has made it cheaper for utilities to produce electricity. But the savings aren't translating to lower rates for customers. Instead, U.S. electricity prices are going up. Electricity prices are forecast to rise slightly this summer. But any increase is noteworthy because natural gas, which is used to produce nearly a third of the country's power, is 43 percent cheaper than a year ago. A long-term downward trend in power prices could be starting to reverse, analysts say. "It's caused us to scratch our heads," says Tyler Hodge, an analyst at the Energy Department who studies electricity prices. The recent heat wave that gripped much of the country increased demand for power as families cranked up their air conditioners. And that may boost some June utility bills. But the nationwide rise in electricity prices is attributable to other factors, analysts say: — In many states, retail electricity rates are set by regulators every few years. As a result, lower power costs haven't yet made their way to customers. — Utilities often lock in their costs for natural gas and other fuels years in advance. That helps protect customers when fuel prices spike, but it prevents customers from reaping the benefits of a price drop. — The cost of actually delivering electricity, which accounts for 40 percent of a customer's bill on average, has been rising fast. That has eaten up any potential savings from the production of electricity. Utilities are building transmission lines, installing new equipment and fixing up power plants after what analysts say has been years of under-investment. This may reverse what has been a gradual decline in retail electricity prices. Adjusted for inflation, the average retail electricity price has been drifting mostly lower since 1984, when it was 16.7 cents per kilowatt-hour. "The ratepayer is going to have to foot the bill," says David Wright, vice chairman of the South Carolina Public Service Commission and president of the National Association of Regulatory Commissioners. The average U.S. residential electricity price is expected to be 12.4 cents per kilowatt hour for the June-to-August period, up 2.4 percent from the same time last year. For the full year, electricity prices are expected to rise 2 percent. In a typical summer month, that would mean an extra $3 on a residential bill, which includes the cost of generating the power and delivering it to a home, plus local taxes and fees. Electricity pricing is complicated, and it differs from state to state. In states where power providers are allowed to compete, such as Texas, Pennsylvania and New York, customers can shop around for cheaper electricity, although delivery charges are still set by regulators. Natural gas has plummeted in price because of a dramatic increase in U.S. gas production over the past few years and a warm winter that allowed supplies to build up. Even though coal accounts for 38 percent of all power produced in the U.S., natural gas plays an outsized role in determining the price of electricity. The price paid for electricity from the last power plant fired up to meet demand at any given moment is what sets the wholesale price for a given region. And since gas-fired power plants are usually the most expensive, they tend to be fired up last. Cheaper natural gas has led to lower wholesale power prices. Power companies operating in states with competitive markets, such as Exelon Corp. and NRG Energy Inc., have seen profits and stock prices tumble along with wholesale prices. Those operating in more regulated power markets, such as Southern Co. and Dominion Resources Inc., have fared much better because their rates don't fluctuate as much. The lower wholesale prices have made it through to some customers' bills, and others could see a temporary dip next year. At the very least, analysts say, the drop in natural gas prices is keeping electric rates from rising faster than they otherwise would have. Customers could still get a break this summer — if not on their electric rates, then at least from Mother Nature. This summer has gotten off to a scorching start in much of the country and is expected to be hotter than normal. But it isn't expected to be as hot as the last two summers, according to Matt Rogers at Commodity Weather Group, which provides forecasts for the energy industry. Don't get too excited, though. The Energy Department's Hodge calculates that if the summer forecast holds true, customers will save an average of $5.95 per month.
URL to original article: http://www.thebusinessjournal.com/news/national/2515-electric-rates-not-falling-along-with-fuel-costs
For further information on Fresno Real Estate check: http://www.londonproperties.com
Report: Fresno metro decent in workforce transit
Source: The Business Journal
The Fresno metro area was fairly adequate in providing transit to its workforce, according to a new report by the Brookings Institution, a Washington D.C. think tank. Out of 100 of the nation's largest metropolitan areas, Fresno and its surrounding cities ranked 50 in terms of its transit coverage, with 70.3 percent of jobs in neighborhoods with public transit service, 99.1 percent within cities and 28.5 percent from suburbs only. The region ranked 8 in terms of its labor access rate, with 45.8 percent of the working population able to get to the job site within 90 minutes via public transit, 47.1 percent within cities and 37.1 percent from the suburbs. The area's finance, insurance and real estate industry led the way with transit coverage at 83.8 percent and labor access at 47 percent, while agriculture lagged at 40 percent and 46 percent respectively. That compares with the national average of 75.5 percent of jobs in neighborhoods with fixed route transit service, 94.7 percent in the city and 64 percent from suburbs. Western states were in a slightly better position at 86.6 percent, 95.3 percent and 80.1 percent respectively. The typical job is accessible to only about 27 percent of its metropolitan workforce by public transit within 90 minutes. The Bakersfield metro ranked 49 in terms of transit coverage at 70.3 percent while its 90-minute labor access rate ranked 19 at 35 percent. The Modesto metro ranked 16 for transit coverage at 84.2 percent and 15 for labor access at 38.5 percent. The report noted that the average distance to work jumped from 9.9 miles in 1983 to 13.3 miles in 2009 while the average number of hours wasted in traffic increased from 14 hours to 34 hours. Congestion geographically limits business markets, raises business-related transportation costs and forces business to increase wages to compensate for the burden, the report said. Public transit frees up a lot of that congestion by taking cars off the road, while metros that plan their transit systems to connect with the broadest labor pool fared the best in the report.
URL to original article: http://www.thebusinessjournal.com/news/transportation/2518-report-fresno-metro-decent-in-workforce-transit
For further information on Fresno Real Estate check: http://www.londonproperties.com
The Fresno metro area was fairly adequate in providing transit to its workforce, according to a new report by the Brookings Institution, a Washington D.C. think tank. Out of 100 of the nation's largest metropolitan areas, Fresno and its surrounding cities ranked 50 in terms of its transit coverage, with 70.3 percent of jobs in neighborhoods with public transit service, 99.1 percent within cities and 28.5 percent from suburbs only. The region ranked 8 in terms of its labor access rate, with 45.8 percent of the working population able to get to the job site within 90 minutes via public transit, 47.1 percent within cities and 37.1 percent from the suburbs. The area's finance, insurance and real estate industry led the way with transit coverage at 83.8 percent and labor access at 47 percent, while agriculture lagged at 40 percent and 46 percent respectively. That compares with the national average of 75.5 percent of jobs in neighborhoods with fixed route transit service, 94.7 percent in the city and 64 percent from suburbs. Western states were in a slightly better position at 86.6 percent, 95.3 percent and 80.1 percent respectively. The typical job is accessible to only about 27 percent of its metropolitan workforce by public transit within 90 minutes. The Bakersfield metro ranked 49 in terms of transit coverage at 70.3 percent while its 90-minute labor access rate ranked 19 at 35 percent. The Modesto metro ranked 16 for transit coverage at 84.2 percent and 15 for labor access at 38.5 percent. The report noted that the average distance to work jumped from 9.9 miles in 1983 to 13.3 miles in 2009 while the average number of hours wasted in traffic increased from 14 hours to 34 hours. Congestion geographically limits business markets, raises business-related transportation costs and forces business to increase wages to compensate for the burden, the report said. Public transit frees up a lot of that congestion by taking cars off the road, while metros that plan their transit systems to connect with the broadest labor pool fared the best in the report.
URL to original article: http://www.thebusinessjournal.com/news/transportation/2518-report-fresno-metro-decent-in-workforce-transit
For further information on Fresno Real Estate check: http://www.londonproperties.com
Mortgage applications fall 2.1%
Source: Housingwire
By Kerri Ann Panchuk
Mortgage applications fell 2.1% last week, the Mortgage Bankers Association said Wednesday. The weekly results were adjusted for the July 4th holiday. The refinance index alone declined 3% from the prior week, while the purchase index increased 3%, suggesting an uptick in home buying activity while refinancings cooled. The refinance share of mortgage activity declined to 77% of total applications, while the adjustable-rate mortgage share of activity remained around 4% of all applications. The average loan size of all loans purchased hit $240,897 in June, down from $243,722 in May. Meanwhile, the average loan size under refinancing hit $218,619, compared to $243,733 the previous month. The average contract interest rate for a 30-year, fixed-rate mortgage with a conforming loan balance of $417,500 or less declined to 3.79%, the lowest rate in the survey's history. In addition, the average contract interest rate for a 30-year, FRM jumbo loan declined from 4.08% to 4.05%. The average rate for 30-year, FRMs backed by the FHA declined from 3.69% to 3.63%. Meanwhile, the 15-year, FRM fell from 3.20% to 3.15%, and the average rate for 5/1 ARMs declined from 2.76% to 2.71%.
URL to original article: http://www.housingwire.com/news/mortgage-applications-fall-21
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Mortgage applications fell 2.1% last week, the Mortgage Bankers Association said Wednesday. The weekly results were adjusted for the July 4th holiday. The refinance index alone declined 3% from the prior week, while the purchase index increased 3%, suggesting an uptick in home buying activity while refinancings cooled. The refinance share of mortgage activity declined to 77% of total applications, while the adjustable-rate mortgage share of activity remained around 4% of all applications. The average loan size of all loans purchased hit $240,897 in June, down from $243,722 in May. Meanwhile, the average loan size under refinancing hit $218,619, compared to $243,733 the previous month. The average contract interest rate for a 30-year, fixed-rate mortgage with a conforming loan balance of $417,500 or less declined to 3.79%, the lowest rate in the survey's history. In addition, the average contract interest rate for a 30-year, FRM jumbo loan declined from 4.08% to 4.05%. The average rate for 30-year, FRMs backed by the FHA declined from 3.69% to 3.63%. Meanwhile, the 15-year, FRM fell from 3.20% to 3.15%, and the average rate for 5/1 ARMs declined from 2.76% to 2.71%.
URL to original article: http://www.housingwire.com/news/mortgage-applications-fall-21
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, July 10, 2012
Americans see housing better in a mixed-signal economy
Source: Fannie Mae
Americans' Optimism About the Economy and Personal Finances Stalling Despite Underlying Continued Confidence in the Housing Market Consumer Attitudes Demonstrative of Macroeconomic Indicators
Pete Bakel 202-752-2034 WASHINGTON, DC –
Housing market confidence among Americans continues to trend in a positive direction despite stalling optimism about the economy and personal finances, according to results from Fannie Mae’s June 2012 National Housing Survey. Results indicate flattening economic trends may be contributing to waning consumer expectations about their personal financial situation. Nevertheless, Americans’ continued positive sentiment about housing appears to remain buoyed by low house prices and interest rates at historically low levels. “While consumers remain cautious about the general economy, their attitudes toward the housing market continue to improve," said Doug Duncan, senior vice president and chief economist of Fannie Mae. "Although this positive trend may be short-lived if the general economy falters, one might ask whether consumers are increasingly seeing the current environment as a unique opportunity to buy a home while home prices remain depressed, rental costs are increasing, and interest rates are near historic lows.” Respondents expect home prices to increase 2 percent in the next year, on average, and 35 percent of Americans say that home prices will go up in the next twelve months (also the highest level recorded since the survey began in June 2010). In turn, the share of consumers who say they would buy if they were going to move increased by 6 percentage points this month (the highest level seen in the survey’s two-year history). At the same time, 36 percent of Americans think the economy is on the right track (down 2 percentage points since May) and 57 percent think the economy is on the wrong track (up 1 percentage point). The percentage of respondents who expect their financial situation to remain the same over the next year dropped by 4 percentage points from last month to 42 percent, while only 18 percent say their household income has improved (also down 4 percentage points).
SURVEY HIGHLIGHTS Homeownership and Renting •Average home price expectation hit 2.0 percent this month, a 0.6 percent increase from May and the highest value recorded since the survey began in June 2010. •Thirty-five percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since the survey’s inception. •Thirty-seven percent of those surveyed think mortgage rates will go up in the next 12 months, a 4 percentage point decrease from last month. •The percentage who say it is a good time to buy increased slightly to 73 percent, matching the highest level recorded since the survey began two years ago, while the percentage who think it is a good time to sell remained at 15 percent. •On average, respondents expect home rental prices to increase by 4.0 percent over the next 12 months, generally steady since May. •Forty-eight percent of respondents think that home rental prices will go up in the next 12 months, while 5 percent think they will go down. •Sixty-nine percent of respondents said that they would buy if they were going to move, a 6 percentage point increase from last month and the highest level recorded since the survey’s inception. •The percentage of respondents who would rent decreased from 32 percent to 27 percent, the lowest number to date. The Economy and Household Finances •The upward trend of confidence that the economy is on the right track stalled this month, leveling at 36 percent. •The percentage of respondents who expect their personal financial situation to stay the same over the next 12 months decreased by 4 percentage points to 42 percent, while those who expect their situation to get better steadied at 43 percent. •Eighteen percent of respondents say their household income is significantly higher than it was 12 months ago, a 4 percentage point decrease and the lowest value seen since November 2011. •Household expenses remained stable this month, with 55 percent reporting that their expenses stayed about the same as they were 12 months ago. The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,001 Americans via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future. For detailed findings from the June 2012 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The June 2012 Fannie Mae National Housing Survey was conducted between June 4, 2012 and June 21, 2012. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.
URL to original article: http://www.builderonline.com/builder-pulse/americans-see-housing-better-in-a-mixed-signal-economy.aspx?cid=BP:071012:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Americans' Optimism About the Economy and Personal Finances Stalling Despite Underlying Continued Confidence in the Housing Market Consumer Attitudes Demonstrative of Macroeconomic Indicators
Pete Bakel 202-752-2034 WASHINGTON, DC –
Housing market confidence among Americans continues to trend in a positive direction despite stalling optimism about the economy and personal finances, according to results from Fannie Mae’s June 2012 National Housing Survey. Results indicate flattening economic trends may be contributing to waning consumer expectations about their personal financial situation. Nevertheless, Americans’ continued positive sentiment about housing appears to remain buoyed by low house prices and interest rates at historically low levels. “While consumers remain cautious about the general economy, their attitudes toward the housing market continue to improve," said Doug Duncan, senior vice president and chief economist of Fannie Mae. "Although this positive trend may be short-lived if the general economy falters, one might ask whether consumers are increasingly seeing the current environment as a unique opportunity to buy a home while home prices remain depressed, rental costs are increasing, and interest rates are near historic lows.” Respondents expect home prices to increase 2 percent in the next year, on average, and 35 percent of Americans say that home prices will go up in the next twelve months (also the highest level recorded since the survey began in June 2010). In turn, the share of consumers who say they would buy if they were going to move increased by 6 percentage points this month (the highest level seen in the survey’s two-year history). At the same time, 36 percent of Americans think the economy is on the right track (down 2 percentage points since May) and 57 percent think the economy is on the wrong track (up 1 percentage point). The percentage of respondents who expect their financial situation to remain the same over the next year dropped by 4 percentage points from last month to 42 percent, while only 18 percent say their household income has improved (also down 4 percentage points).
SURVEY HIGHLIGHTS Homeownership and Renting •Average home price expectation hit 2.0 percent this month, a 0.6 percent increase from May and the highest value recorded since the survey began in June 2010. •Thirty-five percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since the survey’s inception. •Thirty-seven percent of those surveyed think mortgage rates will go up in the next 12 months, a 4 percentage point decrease from last month. •The percentage who say it is a good time to buy increased slightly to 73 percent, matching the highest level recorded since the survey began two years ago, while the percentage who think it is a good time to sell remained at 15 percent. •On average, respondents expect home rental prices to increase by 4.0 percent over the next 12 months, generally steady since May. •Forty-eight percent of respondents think that home rental prices will go up in the next 12 months, while 5 percent think they will go down. •Sixty-nine percent of respondents said that they would buy if they were going to move, a 6 percentage point increase from last month and the highest level recorded since the survey’s inception. •The percentage of respondents who would rent decreased from 32 percent to 27 percent, the lowest number to date. The Economy and Household Finances •The upward trend of confidence that the economy is on the right track stalled this month, leveling at 36 percent. •The percentage of respondents who expect their personal financial situation to stay the same over the next 12 months decreased by 4 percentage points to 42 percent, while those who expect their situation to get better steadied at 43 percent. •Eighteen percent of respondents say their household income is significantly higher than it was 12 months ago, a 4 percentage point decrease and the lowest value seen since November 2011. •Household expenses remained stable this month, with 55 percent reporting that their expenses stayed about the same as they were 12 months ago. The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,001 Americans via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future. For detailed findings from the June 2012 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The June 2012 Fannie Mae National Housing Survey was conducted between June 4, 2012 and June 21, 2012. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.
URL to original article: http://www.builderonline.com/builder-pulse/americans-see-housing-better-in-a-mixed-signal-economy.aspx?cid=BP:071012:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, July 9, 2012
LPS: Foreclosure starts up 2.8% from one year ago
Source: Housingwire
By Jon Prior
Mortgage servicers started more foreclosures in May than a year ago, the first year-over-year increase since early 2011, according to Lender Processing Services ($25.32 -0.15%) data. Foreclosure starts increased 2.8% from May 2011 and climbed 11.6% from April 2012. Data from RealtyTrac released last month showed a similar rise in foreclosure starts. The numbers show the foreclosure process rebooting two months after state attorneys general and the five largest servicers struck a $25 billion settlement in March over past foreclosure abuses. Still, a backlog remains. Roughly 7.32% of all mortgages tracked by LPS are either in serious delinquency or somewhere in the foreclosure process. The percentage has been on the decline since hitting 7.69% at the beginning of the year. Some markets showed signs of continued elevated inventory in May, mostly judicial states where the amount of loans in serious delinquency or foreclosure dipped only 0.8%. That compares to a 7.1% decline in judicial states. In Florida, a judicial state, 13.7% of all loans were in the foreclosure process in May, nearly triple the national average and almost double the next closest state, New Jersey, where 7.6% of home loans are in foreclosure.
URL to original article: http://www.housingwire.com/news/lps-foreclosure-starts-28-one-year-ago
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Jon Prior
Mortgage servicers started more foreclosures in May than a year ago, the first year-over-year increase since early 2011, according to Lender Processing Services ($25.32 -0.15%) data. Foreclosure starts increased 2.8% from May 2011 and climbed 11.6% from April 2012. Data from RealtyTrac released last month showed a similar rise in foreclosure starts. The numbers show the foreclosure process rebooting two months after state attorneys general and the five largest servicers struck a $25 billion settlement in March over past foreclosure abuses. Still, a backlog remains. Roughly 7.32% of all mortgages tracked by LPS are either in serious delinquency or somewhere in the foreclosure process. The percentage has been on the decline since hitting 7.69% at the beginning of the year. Some markets showed signs of continued elevated inventory in May, mostly judicial states where the amount of loans in serious delinquency or foreclosure dipped only 0.8%. That compares to a 7.1% decline in judicial states. In Florida, a judicial state, 13.7% of all loans were in the foreclosure process in May, nearly triple the national average and almost double the next closest state, New Jersey, where 7.6% of home loans are in foreclosure.
URL to original article: http://www.housingwire.com/news/lps-foreclosure-starts-28-one-year-ago
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, July 3, 2012
Turn negative equity into a positive
Source: Housingwire
by Ron Jasgur
Here’s a familiar scenario: Jane and John live in a nice house and pay their mortgage on time every month. Their outstanding loan amount is higher than the home’s market value, making them underwater borrowers. They wish they could move into a bigger house in a better neighborhood, but realize they’re stuck because they can’t sell for what they owe — let alone turn a profit into a down payment. The most responsible type of borrower today is jaded, to say the least. And they’re exactly the borrowers we should be helping. Banks need to create lending programs for perfect-credit borrowers who are underwater and held hostage by their current mortgage. Of course, it’s not as easy as all that — but it is doable — and is exactly the kind of program that the recent attorneys general national mortgage settlement should inspire. Why not help the creditworthy homeowner by using some of the recent attorneys general mortgage servicing settlement funds to pay the difference between market value and unpaid balance for those borrowers who wish to move? • We could make the investor whole at the time of sale • We could roll the deficiency into a new, performing unsecured loan • The bank recoups the AG money over the unsecured loan amortization period • The borrower’s credit profile would be unharmed • The housing market gets moving • Increased buyer activity instills confidence in the market • The bank gains a customer for life Let’s actively invite responsible owner-occupant homeowners into the market — and stop catering to whiners and walk-aways (where all of the focus is today). What’s more, if banks take an active (rather than a passive) role to get the industry moving, they’ll find myriad ways to turn problems into profits. This isn’t much different than rolling your last few car payments into a new lease. The biggest pool of potential buyers, the market’s biggest catalyst, is people who are stuck in a house they’d rather leave. They can’t or won’t take a loss and bring money to the table in order to sell — money they’d rather invest in a new home. According to the National Association of Realtors, 63% of recent homebuyers were repeat or move-up buyers, and 60% of buyers were first-time sellers. Simply put, the largest pool of potential homebuyers consists of those who already own a house. All of today’s existing assistance programs cater to the person who is delinquent or calculated to be at risk of imminent default. And the irony is, the root of that person’s problems is deeper than any of our programs can solve. Forgiving principal on a loan in default won’t solve the problem. But what would a stand-up homeowner say if you removed their shackles and helped them move? I’m picturing a dance, cartwheels and exclamations of joy. This is a giant population of people you can count on, who can pay a bigger bill, who would love to pay a larger mortgage if it meant they lived in the home of their dreams. This is how it looks: The Big Bad Bank turns into The Big Generous Community Institution, approaches Mr. 850 Credit Score and says, “We have a once in a lifetime opportunity for you. Because you have willingness to repay, because we see how diligent you’ve been in consistently paying your mortgage, because we agree that it’s awful to be underwater, we want to make you a deal. We’ll help you get out of the house you’re in and into a new house with a new loan from our bank. We’ll help you take advantage of today’s low interest rates and depressed pricing. We want to reward good values.” Now the bank is a good guy, not the enemy. A bank for life. It could even be more far-reaching. Banks could partner up with homebuilders and give preferential treatment to current customers who would consider new construction. Or, what if the bank took the REO and short sales already on its books and turned them from losers into special opportunities for current, paying customers? Part of the inventory problem today is that the biggest pool of buyers is prohibited from purchasing. Let’s drive the economy with new homes, with people who want to spend money, who have good jobs and good credit. Let’s shift the large percentage of housing inventory from investors to owner-occupants — who can and will improve the neighborhoods they live in. So far in 2012, investors have purchased more than 40% of the REO sold via OfferSubmission and more than 55% of transactions were closed with cash. These telling numbers suggest that the liquidation strategy of bank-owned properties is weighted heavily toward moving volume and less about creating value for shareholders and taxpayers alike. Those who can turn the housing economy around are owner-occupant buyers leveraging traditional financing options — with a twist. We need to embrace the homeowners who pay their bills, and create the programs that turn this ongoing crisis into a once-in-a-lifetime opportunity.
URL to original article: http://www.housingwire.com/news/turn-negative-equity-positive
For further information on Fresno Real Estate check: http://www.londonproperties.com
by Ron Jasgur
Here’s a familiar scenario: Jane and John live in a nice house and pay their mortgage on time every month. Their outstanding loan amount is higher than the home’s market value, making them underwater borrowers. They wish they could move into a bigger house in a better neighborhood, but realize they’re stuck because they can’t sell for what they owe — let alone turn a profit into a down payment. The most responsible type of borrower today is jaded, to say the least. And they’re exactly the borrowers we should be helping. Banks need to create lending programs for perfect-credit borrowers who are underwater and held hostage by their current mortgage. Of course, it’s not as easy as all that — but it is doable — and is exactly the kind of program that the recent attorneys general national mortgage settlement should inspire. Why not help the creditworthy homeowner by using some of the recent attorneys general mortgage servicing settlement funds to pay the difference between market value and unpaid balance for those borrowers who wish to move? • We could make the investor whole at the time of sale • We could roll the deficiency into a new, performing unsecured loan • The bank recoups the AG money over the unsecured loan amortization period • The borrower’s credit profile would be unharmed • The housing market gets moving • Increased buyer activity instills confidence in the market • The bank gains a customer for life Let’s actively invite responsible owner-occupant homeowners into the market — and stop catering to whiners and walk-aways (where all of the focus is today). What’s more, if banks take an active (rather than a passive) role to get the industry moving, they’ll find myriad ways to turn problems into profits. This isn’t much different than rolling your last few car payments into a new lease. The biggest pool of potential buyers, the market’s biggest catalyst, is people who are stuck in a house they’d rather leave. They can’t or won’t take a loss and bring money to the table in order to sell — money they’d rather invest in a new home. According to the National Association of Realtors, 63% of recent homebuyers were repeat or move-up buyers, and 60% of buyers were first-time sellers. Simply put, the largest pool of potential homebuyers consists of those who already own a house. All of today’s existing assistance programs cater to the person who is delinquent or calculated to be at risk of imminent default. And the irony is, the root of that person’s problems is deeper than any of our programs can solve. Forgiving principal on a loan in default won’t solve the problem. But what would a stand-up homeowner say if you removed their shackles and helped them move? I’m picturing a dance, cartwheels and exclamations of joy. This is a giant population of people you can count on, who can pay a bigger bill, who would love to pay a larger mortgage if it meant they lived in the home of their dreams. This is how it looks: The Big Bad Bank turns into The Big Generous Community Institution, approaches Mr. 850 Credit Score and says, “We have a once in a lifetime opportunity for you. Because you have willingness to repay, because we see how diligent you’ve been in consistently paying your mortgage, because we agree that it’s awful to be underwater, we want to make you a deal. We’ll help you get out of the house you’re in and into a new house with a new loan from our bank. We’ll help you take advantage of today’s low interest rates and depressed pricing. We want to reward good values.” Now the bank is a good guy, not the enemy. A bank for life. It could even be more far-reaching. Banks could partner up with homebuilders and give preferential treatment to current customers who would consider new construction. Or, what if the bank took the REO and short sales already on its books and turned them from losers into special opportunities for current, paying customers? Part of the inventory problem today is that the biggest pool of buyers is prohibited from purchasing. Let’s drive the economy with new homes, with people who want to spend money, who have good jobs and good credit. Let’s shift the large percentage of housing inventory from investors to owner-occupants — who can and will improve the neighborhoods they live in. So far in 2012, investors have purchased more than 40% of the REO sold via OfferSubmission and more than 55% of transactions were closed with cash. These telling numbers suggest that the liquidation strategy of bank-owned properties is weighted heavily toward moving volume and less about creating value for shareholders and taxpayers alike. Those who can turn the housing economy around are owner-occupant buyers leveraging traditional financing options — with a twist. We need to embrace the homeowners who pay their bills, and create the programs that turn this ongoing crisis into a once-in-a-lifetime opportunity.
URL to original article: http://www.housingwire.com/news/turn-negative-equity-positive
For further information on Fresno Real Estate check: http://www.londonproperties.com
California governor expected to sign foreclosure reforms
Source: Housingwire
By Jon Prior
Gov. Jerry Brown said he fully supports the new requirements for mortgage servicers under the Homeowner Bill of Rights passed by the California State Legislature Monday. "The Homeowner Bill of Rights will prevent banks from throwing Californians out of their homes while they are trying, in good faith, to renegotiate their mortgages," Brown said in a statement. "This bill establishes important consumer protections that are long overdue and I commend Attorney General Kamala Harris for her determined pursuit of these changes." His office did not say when the governor is expected to sign the legislation. Democrat lawmakers took just four months to push a series of bills through both chambers since introducing them earlier this year. Many of the requirements were built around similar requirements under the national $25 billion foreclosure settlement California Attorney General Kamala Harris and 48 other states signed onto in March. Oklahoma did not sign the settlement. The bills passed Monday end the practice of dual-track foreclosures, by which mortgage servicers continue the foreclosure process on borrowers while simultaneously considering them for a modification. They also require servicers to provide documentation to the borrower establishing the right to foreclosure before filing a default notice, and the bills levy civil penalties for filing fraudulent affidavits and other paperwork with counties. Other bills give Harris new powers to pursue financial crimes across several jurisdictions. The bills faced significant opposition from the mortgage industry. "The California foreclosure laws are misguided and damaging," said Anthony Sanders, an economist at George Mason University, in a blog post Tuesday. "Essentially, would you lend money to someone in California if you knew that it is more difficult to enforce a foreclosure if the borrower defaults?" Roughly 263,500 properties in California received a foreclosure filing in the first six months of 2012, the highest total in the nation, according to RealtyTrac. Filings dropped 13% from last year. It takes an average 274 days to foreclose on a property in California after the notice of default is filed, one of the shortest timelines in the country, according to ForeclosureRadar. "Californians will finally have a fighting chance to keep their homes, as this measure brings fairness to the loan modification and foreclosure process," said California Senate President pro Tem Darrell Steinberg.
URL to original article: http://www.housingwire.com/news/california-governor-expected-sign-foreclosure-reforms
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Jon Prior
Gov. Jerry Brown said he fully supports the new requirements for mortgage servicers under the Homeowner Bill of Rights passed by the California State Legislature Monday. "The Homeowner Bill of Rights will prevent banks from throwing Californians out of their homes while they are trying, in good faith, to renegotiate their mortgages," Brown said in a statement. "This bill establishes important consumer protections that are long overdue and I commend Attorney General Kamala Harris for her determined pursuit of these changes." His office did not say when the governor is expected to sign the legislation. Democrat lawmakers took just four months to push a series of bills through both chambers since introducing them earlier this year. Many of the requirements were built around similar requirements under the national $25 billion foreclosure settlement California Attorney General Kamala Harris and 48 other states signed onto in March. Oklahoma did not sign the settlement. The bills passed Monday end the practice of dual-track foreclosures, by which mortgage servicers continue the foreclosure process on borrowers while simultaneously considering them for a modification. They also require servicers to provide documentation to the borrower establishing the right to foreclosure before filing a default notice, and the bills levy civil penalties for filing fraudulent affidavits and other paperwork with counties. Other bills give Harris new powers to pursue financial crimes across several jurisdictions. The bills faced significant opposition from the mortgage industry. "The California foreclosure laws are misguided and damaging," said Anthony Sanders, an economist at George Mason University, in a blog post Tuesday. "Essentially, would you lend money to someone in California if you knew that it is more difficult to enforce a foreclosure if the borrower defaults?" Roughly 263,500 properties in California received a foreclosure filing in the first six months of 2012, the highest total in the nation, according to RealtyTrac. Filings dropped 13% from last year. It takes an average 274 days to foreclose on a property in California after the notice of default is filed, one of the shortest timelines in the country, according to ForeclosureRadar. "Californians will finally have a fighting chance to keep their homes, as this measure brings fairness to the loan modification and foreclosure process," said California Senate President pro Tem Darrell Steinberg.
URL to original article: http://www.housingwire.com/news/california-governor-expected-sign-foreclosure-reforms
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, July 2, 2012
California Homeowner Bill of Rights passes, sent to governor
Source: Housingwire
By Justin T. Hilley
Two central provisions of the California Homeowner Bill of Rights passed the California State Legislature Monday. The bills will travel to Gov. Jerry Brown’s desk, where other provisions of the bill also await approval. Brown has not indicated whether he will sign or veto the legislation. The Assembly, by a vote of 53 to 25, and Senate, 24 to 13, approved the Foreclosure Reduction Act, which restricts the process of dual-tracked foreclosures and the Due Process Rights Act, which guarantees a single point of contact for struggling homeowners to discuss their loan. The latter also imposes civil penalties on the practice of fraudulently signing foreclosure documents without verifying their accuracy. The Foreclosure Reduction Act bars lenders from filing notices of default, notices of sale, or conducting trustees’ sales while also considering alternatives to foreclosures like loan modifications or short sales. “These common-sense reforms will require banks to treat California homeowners more fairly and bring more transparency and accountability to their practices in our state,” said California Attorney General Kamala Harris. “Responsible homeowners will have a better shot to keep their homes.” The bills' passage comes the day after the release of a study authored by research and consulting firm Beacon Economics on behalf of industry groups, concluding that if the Homeowner Bill of Rights were signed into law it would ultimately harm the vast majority of California homeowners. The bills impose stricter rules on mortgage servicers seeking to nonjudicially foreclose on homes with mortgages in default and expose mortgage servicers to substantial new legal liability, according to Beacon. Beacon argues the bills could add to the financial burden of distressed homeowners. “The nonjudicial foreclosure process is more efficient compared to the judicial foreclosure process, and it comes with an important caveat," the study notes. "When using nonjudicial foreclosure, lenders … cannot seek compensation for their mortgage losses out of the borrower’s other assets. If the nonjudicial route is lengthened and made more costly, many lenders may decide to pursue a judicial foreclosure ... and thus pursue remedies like deficiency judgments, ultimately costing the borrower more in the long run,” the study said. Calling the bills “monumental,” State Sen. Darrell Steinberg, D-Sacramento, said people came together from different points of views over the course of 20 hours. “This is how the process should work,” Steinberg said. “We achieved a middle ground. Let this be the first of a number of things we get done this week.”
URL to original article: http://www.housingwire.com/news/california-homeowner-bill-rights-sent-governor-sign-or-veto
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Two central provisions of the California Homeowner Bill of Rights passed the California State Legislature Monday. The bills will travel to Gov. Jerry Brown’s desk, where other provisions of the bill also await approval. Brown has not indicated whether he will sign or veto the legislation. The Assembly, by a vote of 53 to 25, and Senate, 24 to 13, approved the Foreclosure Reduction Act, which restricts the process of dual-tracked foreclosures and the Due Process Rights Act, which guarantees a single point of contact for struggling homeowners to discuss their loan. The latter also imposes civil penalties on the practice of fraudulently signing foreclosure documents without verifying their accuracy. The Foreclosure Reduction Act bars lenders from filing notices of default, notices of sale, or conducting trustees’ sales while also considering alternatives to foreclosures like loan modifications or short sales. “These common-sense reforms will require banks to treat California homeowners more fairly and bring more transparency and accountability to their practices in our state,” said California Attorney General Kamala Harris. “Responsible homeowners will have a better shot to keep their homes.” The bills' passage comes the day after the release of a study authored by research and consulting firm Beacon Economics on behalf of industry groups, concluding that if the Homeowner Bill of Rights were signed into law it would ultimately harm the vast majority of California homeowners. The bills impose stricter rules on mortgage servicers seeking to nonjudicially foreclose on homes with mortgages in default and expose mortgage servicers to substantial new legal liability, according to Beacon. Beacon argues the bills could add to the financial burden of distressed homeowners. “The nonjudicial foreclosure process is more efficient compared to the judicial foreclosure process, and it comes with an important caveat," the study notes. "When using nonjudicial foreclosure, lenders … cannot seek compensation for their mortgage losses out of the borrower’s other assets. If the nonjudicial route is lengthened and made more costly, many lenders may decide to pursue a judicial foreclosure ... and thus pursue remedies like deficiency judgments, ultimately costing the borrower more in the long run,” the study said. Calling the bills “monumental,” State Sen. Darrell Steinberg, D-Sacramento, said people came together from different points of views over the course of 20 hours. “This is how the process should work,” Steinberg said. “We achieved a middle ground. Let this be the first of a number of things we get done this week.”
URL to original article: http://www.housingwire.com/news/california-homeowner-bill-rights-sent-governor-sign-or-veto
For further information on Fresno Real Estate check: http://www.londonproperties.com
Second Quarter Luxury Real Estate Numbers Strong
Source: PR Newswire
DALLAS, June 28, 2012 /PRNewswire/ -- Luxury home prices climbed and closings on some of the world's most beautiful properties picked up in the second quarter, bringing good news to those offering premium real estate in the U.S. and abroad. "The luxury real estate market appears to be vibrant in many places domestically and internationally," said Robbie Briggs, president and CEO of Briggs Freeman Sotheby's International Realty in Dallas. "In my experience, buyers are coming in with strong offers of cash or heavy down payments. For the first time in a long time, I see homeowners with renewed confidence in the second quarter, thanks to lower interest rates." The improvements in the luxury home market kept pace with reported gains in the domestic real estate market overall in recent months. Sales of existing homes of more than $1 million improved by nearly 17 percent in some regions in April over the same period in 2011, according to the National Association of Realtors. And new home sales at the high end of the market remained strong through May, according to statistics from the U.S. Department of Housing and Urban Development. Briggs' association with Sotheby's International Realty and its Global Partnership network gives him an opportunity to gather first-hand reports about luxury home sales from around the world, and he's hearing about an uptick in sales of premium properties everywhere: In Manhattan, people are buying co-ops and condos at top prices, and a penthouse on 57th Street just sold for more than $90 million - a record sale for New York City, according to Royce Pinkwater. Attracting buyers from around the U.S., Brazil and other countries, the Miami market has seen price per square foot rise 18 percent over the past year, and sales were up 66 percent in the first quarter, said Mayi de Ia Vega. Michael Rankin reported the demand for luxury homes has grown so much in Washington, D.C., that many are being offered as "private exclusives," and kept off of the multiple listing service. Even with the uncertainty in the stock market and a teetering global economy making buyers nervous, Gloria Smith in San Francisco said homes in the $5 million range continue to sell quickly. And that's just the domestic luxury real estate report. "In talking to many associates in Europe, I'm hearing about record-setting sales prices in Sweden and increased interest from Americans and Russians looking at villas in Italy," Briggs said. "On top of that, the European debt crisis has driven the world's super-rich to seek stable investments in high-end properties in London. "It all tells me that global prospects for luxury home sales are gradually strengthening." CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby's International Realty located in Dallas, Texas.
URL to original article: http://www.prnewswire.com/news-releases/second-quarter-luxury-real-estate-numbers-strong-160717935.html
For further information on Fresno Real Estate check: http://www.londonproperties.com
DALLAS, June 28, 2012 /PRNewswire/ -- Luxury home prices climbed and closings on some of the world's most beautiful properties picked up in the second quarter, bringing good news to those offering premium real estate in the U.S. and abroad. "The luxury real estate market appears to be vibrant in many places domestically and internationally," said Robbie Briggs, president and CEO of Briggs Freeman Sotheby's International Realty in Dallas. "In my experience, buyers are coming in with strong offers of cash or heavy down payments. For the first time in a long time, I see homeowners with renewed confidence in the second quarter, thanks to lower interest rates." The improvements in the luxury home market kept pace with reported gains in the domestic real estate market overall in recent months. Sales of existing homes of more than $1 million improved by nearly 17 percent in some regions in April over the same period in 2011, according to the National Association of Realtors. And new home sales at the high end of the market remained strong through May, according to statistics from the U.S. Department of Housing and Urban Development. Briggs' association with Sotheby's International Realty and its Global Partnership network gives him an opportunity to gather first-hand reports about luxury home sales from around the world, and he's hearing about an uptick in sales of premium properties everywhere: In Manhattan, people are buying co-ops and condos at top prices, and a penthouse on 57th Street just sold for more than $90 million - a record sale for New York City, according to Royce Pinkwater. Attracting buyers from around the U.S., Brazil and other countries, the Miami market has seen price per square foot rise 18 percent over the past year, and sales were up 66 percent in the first quarter, said Mayi de Ia Vega. Michael Rankin reported the demand for luxury homes has grown so much in Washington, D.C., that many are being offered as "private exclusives," and kept off of the multiple listing service. Even with the uncertainty in the stock market and a teetering global economy making buyers nervous, Gloria Smith in San Francisco said homes in the $5 million range continue to sell quickly. And that's just the domestic luxury real estate report. "In talking to many associates in Europe, I'm hearing about record-setting sales prices in Sweden and increased interest from Americans and Russians looking at villas in Italy," Briggs said. "On top of that, the European debt crisis has driven the world's super-rich to seek stable investments in high-end properties in London. "It all tells me that global prospects for luxury home sales are gradually strengthening." CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby's International Realty located in Dallas, Texas.
URL to original article: http://www.prnewswire.com/news-releases/second-quarter-luxury-real-estate-numbers-strong-160717935.html
For further information on Fresno Real Estate check: http://www.londonproperties.com
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