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Showing posts from August, 2013

Freddie Mac Earns $5 Billion in 3 Months; To Pay US $4.4 Billion

by August 07, 201311:24 AM
Freddie Mac racked up a $5 billion profit in the second quarter, the mortgage backer said in its quarterly report Wednesday. The earnings are the second-highest in the history of Freddie Mac, which has now extended its streak of profitable quarters to seven in a row.

The mortgage giant also put its net worth at $7.4 billion as of the end of June. Freddie says it will pay the U.S. Treasury a dividend of $4.4 billion, in keeping with terms of the federal aid it (along with Fannie Mae) got during the mortgage crisis. (The dividend's amount is based on any earnings above the company's reserve mark of $3 billion).

With that payment, the company says it will have paid the Treasury about $41 billion in dividends by September. The federal assistance has also left the U.S. government owning $72.3 billion in the company's preferred stock.

"Clearly our outstanding financial results continue to benefit from the turnaround in the housing ma…

Municipal bonds sell-off draws attention, again

Municipal bonds sell-off draws attention, againPublished: August 23, 2013By Stan Choe— Associated Press Municipal bonds usually don't get much attention unless something's wrong. They're getting attention now.

Investors have been running away from bonds issued by state and local governments for several months, even though they offer tax-free income. The worries began when interest rates started to rise in the spring and heightened after Detroit became the biggest city in the country to ever file for bankruptcy.

The sell-off is reminiscent of one that smacked municipal bonds in late 2010 and early 2011, following a prediction that a wave of defaults would hit the market. But now, like then, managers of municipal-bond mutual funds say the worries have created a buying opportunity.

Investors who bought in late 2010 did well: The average intermediate-term municipal bond fund returned 9% in 2011. Managers say such big gains aren't likely …

Nation's former top auditor eyes US debt warily

Nation's former top auditor eyes US debt warily By CHRISTINA REXRODE — Aug. 21 12:41 PM EDT FILE - In this Feb. 1, 2006 file photo, the Government Accountability Office's Comptroller General David Walker listens to a reporter's question at the U.S. Capitol in Washington. Walker, who for a decade ran the GAO, the watchdog group charged with overseeing how the government spends taxpayer money, is as adamant as ever that Washington is out of touch and out of control with the nation’s finances. In September 2013, he plans to present a major report for the nonprofit he founded, the Comeback America Initiative, whose purpose is to raise awareness about the federal government’s swelling debt. (AP Photo/Haraz N. Ghanbari, File) NEW YORK (AP) — The economy is slowly growing, the government's yearly budget deficit falling. But the nation's former top auditor doesn't buy the idea that everything is OK.
David Walker, who for a decade ran the Government Accountability Office…

Recovery Fuels national builders' interest in Fresno housing market

Recovery fuels national builders' interest in Fresno housing marketPublished: August 23, 2013
Read more here:

By BoNhia Lee— The Fresno Bee

Eager buyers and a recovering economy have renewed the interest of national home builders in the central San Joaquin Valley's new-home market.
After a three-year absence, McMillin Homes has returned to southeast Fresno where it is already building five houses and will start another four in its Stallion Springs development.
Centex Homes, D.R. Horton and Woodside Homes, which hung on in the Valley but pared back their development work during the housing bust, are now ramping up new Fresno and Clovis projects.
"We have seen the biggest annual gain in new home pricing in seven years in addition to a tightening of inventory available for sale with fewer foreclosures," said Carrie Williams, vice president for McMillin Homes.

Calif City Looks to Seize Loans to Ease Mortgages

Calif City Looks to Seize Loans to Ease Mortgages When the mayor of Richmond, Calif., and a gaggle of activists and homeowners showed up at the Wells Fargo Bank headquarters in downtown San Francisco this month, they were on a mission to speak with the bank's chief executive. They wanted the bank to drop a lawsuit aimed at stopping Richmond's first-in-the-nation plan to use the government's constitutional power of eminent domain to "seize" hundreds of mortgages from Wells Fargo and other financial institutions. As Mayor Gayle McLaughlin and the plan's backers approached the bank building, security guards locked the doors. After a bank official told her there would be no meeting then and that someone would call her later, she grabbed a bullhorn. "I am absolutely not backing down," McLaughlin said, as curious tourists and lunching office workers milled about. Wells Fargo, three other banks and even the Federal Housing Finance Agency think otherwise. …

Dissolving Fannie Mae, Freddie Mac may hurt borrowers

There's no consensus on how to replace Fannie and Freddie, but without them home loans will almost certainly be more expensive.                 
WASHINGTON — You may have seen two sets of news reports recently that didn't quite add up: First, President Obama called for the liquidation of Fannie Mae and Freddie Mac, the country's largest providers of funds for home mortgages. Then, Fannie Mae announced its sixth straight quarterly profit and said it was sending $10.2 billion in dividends to the Treasury. Freddie Mac also reported a hefty profit — $5 billion over the previous three months — and said it is providing $4.4 billion in dividends to the government.
Both companies also summarized what they've been doing for home buyers and owners since their takeover by the federal government in September 2008. Given the president's call for them to disappear, it's worth taking a quick look.
Since January 2009, Fannie says it has provided funding for 3.1 million hom…

EDC 2013 Real Estate Forecast

RESIDENTIAL - John Shamshoian
Demand is High
Inventory Low
Rising Prices
sales prices 19% up from prior year
Per Clarus, 54% lower in inventory from 2011 to 2013
1.8 month supply = 30 day
primary buyers are Gen Y, Move up Sellers, Ready Rebound Buyers, Investors,
10 - 12% up forecasted jump in pricing for next 12 months

Apt rent is at an all time high!
Single Family detached rentals as investments vehicles at $62/sq ft
For every 1/2 pt higher, NOI must rise 4%
Game Changers, new home construction and oil/gas boom
Pendulum is swinging back to buy homes again, especially in high rent areas!
Interest rates going up!

FINANCE - Matt Renney Mohr, Rurik Capital Group
Hotels up 61%
Multi Unit up 32%

Slow but steady progress
LTV difficult
concerns with political instability
vacancies low
values high
Rental rates even
slow demand
ag companies expanding in office and real estate
real estate related companies expanding in to office space
Class A/N Herndon
Class B/Down…

4/16/19 CAR Distressed Property Forum in LA Convention Center

Enrique, Chase Bank
Jacqui Cosgrove, FDMC
Josh Potter, FNMA
Abel Fregosa, WF
Jose Rios, BAC
Darren Blumquist, Realty Trac
Sara Sutachan, CAR, Moderator

HAMP: 866-939-4469



Main Points:
Home owners need help & need to be convinced to sell
Set expectations to seller
Pre approve Buyer
Position yourself as a Resolution Expert
Utilize agent resource centers
Communicate early with servicers
Home Path for Short sales has new website, use it!
Stay on Top of Education

HAFA/LEASEBACK programs available but only through NPOs
Chase will also look at 1 payment missed and new owner take backs

Credit Impact - use to pick up a clients credit score as it will matter in coming months as to the preparation of a short sale.  If the client has a credit score under 620 less documentation will be needed.  The credit report will be needed by the short sale bank.

Shadow inventory is in short sales!

Lien Ma…

3/15/13 Appraiser Update with Carole Laval at CHC General Meeting

Carole Lavale updated the group on 2012 -2013 Uniform Standards of Professional Appraisal Practice guidelines along with providing a packet of information.

What was most interesting about the update with Carole is the data she tracks for her field in particular.  When the data was extrapolated by zip code the percentage of Traditional v Distressed property was very telling in certain zip codes.  As well, what was more interesting is the methodology that went into appraising the price based upon this data. 

If the number of distressed property is over 50% in a certain zip code, then the appraiser will utilize ALL properties in a comparable.  If the data was under 50%, only SIMILAR property types were taken into account.

Of 9 zip codes reviewed, 6 were over the 50% mark implying that we've got a great start at transitioning our real estate market to more of a standard type of traditional sale.  Zip codes such as 93722, 93727 and 93728 still struggle with more than 50% of their inv…

Higher Mortgage Rates? If Fannie Mae, Freddie shut costs likely to rise.