By Dennis Norman, on November 30th, 2009
 - Dennis Norman
Fannie Mae just announced their new “First Look” initiative which is aimed at supporting neighborhood stabilization and promoting home purchases by owner occupants by providing owner occupants an advantage in purchasing Fannie-Mae-owned foreclosed properties.
By Debi Averett, on November 27th, 2009 In the ongoing debate about whether one should walk away from an underwater mortgage or not, one University of Arizona professor speaks out strongly in favor of taking a hike. According to Brent T. White, an associate professor of law at the University of Arizona:
A failure to grasp the true economics of the situation is holding back many Americans whose home values have dropped far below the amount they owe and who would be better off renting, Mr. White says. Fear, shame and guilt also are preventing rational decisions, he believes. And, he says, those “emotional constraints” are encouraged by politicians and bankers, who ruthlessly and amorally follow their own economic interests while telling Joe Soggy Homeowner he has a moral duty to pay his debt so long as he possibly can. Continue reading “The Cost of Not Walking Away From An Underwater Mortgage“
By Dennis Norman, on November 25th, 2009  St. Louis mortgage rates remained at near record-lows this week according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – November 25, 2009 * Continue reading “St. Louis Real Estate News – St Louis mortgage rates stay low this week“
By Dennis Norman, on November 25th, 2009 Dennis Norman This morning the U.S. Department of Commerce released a report showing the sale of New Homes in October were at a seasonally adjusted annual rate of 430,000, a 6.2 percent increase from the revised September rate of 405,000 and is 5.1 percent above a year ago.
My Mantra
As has been my long-running mantra, I don’t like “seasonally adjusted” numbers and “rate” of sales. Why, for one I can’t figure out how in the world they compute the numbers. Second, I just don’t think discussing  the “rate” of new home sales paints a realistic picture of the market. For example, in September there were 31,000 homes sold and the original “seasonally adjusted annual rate” of sales was given as 402,000 homes. In October there were 35,000 new homes sold and this 4,000 home increase over September boosted the Continue reading “New Home Sales in US through October; UP 5.1 percent OR DOWN 24.1 percent from a year ago, take your pick“
By News Desk, on November 25th, 2009 First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify
 WASHINGTON — A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers.
The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase. Continue reading “New updated info from IRS on Homebuyer Tax Credit“
By Dennis Norman, on November 24th, 2009
- Dennis Norman
According to a report released today by First American CoreLogic nearly 10.7 million U.S. mortgages, or 23 percent of all mortgaged properties, are in a negative equity position meaning the borrowers owe more on their mortgage than their home is worth as of September 30, 2009. 
Here in St. Louis, as of September 30, 2009, there were 87,557 homeowners in St. Louis that were “underwater” on their mortgage, meaning they owe more than their home is worth. This works out to 15.14 percent of the homeowners in St. Louis with a mortgage, so about 2/3 of the national rate.
If you read my post about CoreLogics 2nd quarter Continue reading “St. Louis Real Estate News: Over 15 percent of St Louis homeowners with a mortgage are underwater“
By Dennis Norman, on November 23rd, 2009 Dennis Norman National Association of REALTORS released a report today saying US Home Sales in October increased 10.1 percent for the month and are 23.5 percent higher than a year ago; I did an analysis of the data based just on ACTUAL sales and came up with an increase for the month of 6.6 percent and an increase of less than 1 percent from a year ago…When looking at the Actual sales number for US home sales, the St Louis market is performing pretty close…(to see my complete post and analysis of the NAR report click here)
 Here in the St. Louis metro area (in which I include the City of St. Louis and the counties of St Louis, St Charles, Jefferson and Franklin) home and condo sales for October increased 7.0 percent to 2,375 units up from 2,219 units for September. As I reported last week in my St. Louis Real Estate News St. Louis Real Etate Market Update, through the end of October home sales in St. Louis are down 4.8 percent from the same period last year. Continue reading “St. Louis area home sales increase 7.0 percent in October from September; down 4.8 percent from a year ago“
By News Desk, on November 21st, 2009 
Joy Jackson Personally Responsible for Over $16 Million in Losses to Mortgage Lenders; Used Over $800,000 of Fraudulently Obtained Proceeds to Pay for Her Wedding
U.S. District Judge Roger W. Titus sentenced the president of the Metropolitan Money Store, Joy Jackson, age 41, of Fort Washington, Maryland, today to 151 months in prison followed by five years of supervised release for conspiracy to commit mail and wire fraud in connection with a mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Judge Titus also entered a judgement ordering Jackson to pay restitution of $16,880,884.86 and to forfeit three residential properties in Oxon Hill, Capitol Heights and Laurel, Maryland and three vehicles. Continue reading “President of Metropolitan Money Store Sentenced to Over 12 Years in Prison for $37 Million Mortgage Fraud Scheme“
By Dennis Norman, on November 20th, 2009 Missouri ranks 21st in delinquencies and 30th in foreclosures
 According to a report just issued by the Mortgage Bankers Association, the mortgage delinquency rate on one-to-four-unit residential properties in the U.S. rose to a new record rate of 9.64 percent. Here in Missouri, the delinquency rate is slightly lower at 9.41 percent.
Included in the MBA’s report as a “delinquency” are loans that are at least one payment past due, but does NOT include loans somewhere in the process of foreclosure. At the end of third quarter 2.05 percent of mortgage loans in Missouri were in the foreclosure process. Therefore 11.46 percent of mortgage loans in Missouri are actually delinquent once we add in the ones in foreclosure. Continue reading “Almost 1 in 8 Missourians are delinquent on mortgage payments according to MBA report“
By Dennis Norman, on November 19th, 2009 New Site Aimed at Helping More Hispanics Buy Homes
 FannieMae announced the company launched a Spanish version of its HomePath.com website designed to help more potential homeowners who speak Spanish purchase Fannie Mae-owned properties.
The new website in Spanish mirrors the English version of HomePath.com featuring an interactive search tool of Fannie Mae-owned properties nationwide, details about HomePath® financing, a mortgage payment calculator, property alerts, as well as information on foreclosure prevention and the Making Home AffordableSM program. Continue reading “Fannie Mae launches new HomePath Site in Spanish“
By Dennis Norman, on November 19th, 2009
- Dennis Norman
According to a report issued by First American CoreLogic national home prices continue to decline with their HPI (Loan Performance Home Price Index) declining by 9.8 percent in September 2009 compared with the year before. If you take the distressed sales out (foreclosures, short sales, etc) the nation decline in HIP for the same period was 6.2 percent.
By Dennis Norman, on November 19th, 2009 
Even with a decline in the Midwest in new home starts and completions, new home construction activity is still outpacing new home sales potentially leading to inventories increasing again.
The US Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for October 2009 showing a decrease in new home construction activity in the Midwest from September.
The report shows the following for the Midwest Region: Continue reading “New home construction in Midwest down in October; New home completions still outpacing sales by over 50 percent“
By Dennis Norman, on November 18th, 2009  Dennis Norman Home sales in the St.Louis area through October 31st are down 4.8 percent from the same period a year ago, however this is a decrease of almost 40 percent from the month before when sales were down 7.9 percent from the same period the year before. St. Louis area median home prices for the period are down 6.5 percent from a year before however this is also an improvement from the 7.1 percent decrease for the month before. The average time it takes to sell a home in the St. Louis area is 2.2 percent less than a year ago, which is also an improvement from the month before when it is 1.1 percent less than the year before.
All the counties included in this report saw an improvement in sales, median home prices and average time to sell from the month before when comparing to last year. While that is encouraging we need to remember that the St. Louis Housing Market for this year is still not able to keep up with last year, and last years numbers were not good. Therefore I think we have a ways to go before we can get too excited. Continue reading “St. Louis Real Estate News St. Louis Real Estate Market Update“
By Dennis Norman, on November 17th, 2009 St. Louis mortgage rates dropped this week to almost record lows according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – November 17, 2009 * Continue reading “St. Louis Real Estate News – St Louis mortgage rates drop again this week remaining below 5 percent“
By Dennis Norman, on November 16th, 2009
- Dennis Norman
TransUnion released the results of its analysis of trends in the mortgage industry for the third quarter of 2009 and the associated impact on the U.S. consumer.
Part of this report focused on delinquencies on mortgages and the rate of mortgage delinquency. The report showed that mortgage loan delinquency (the ratio of borrowers 60 or more days past due) increased for the eleventh straight quarter, hitting an all-time national average high of 6.25 percent for the third quarter of 2009, a 7.57 percent increase from the record-setting second quarter rate. Continue reading “Mortgage Loan Delinquencies on track to set record in 2009“
By Dennis Norman, on November 13th, 2009 Dennis Norman I can remember a time, not that long ago, where about the last thing people were concerned about was the value of their home going down. After all, for decades, our homes proved to be safe investments….no, we weren’t going to see their values shoot up 50 percent in one month like some hot tech stocks of the past, but nor were we going to see them drop by the same amount in a month. Nationally home values increased about 5 percent a year, year after year. That was until around the end of 2007 when we all learned just how volatile home prices can be.
Today, even with prices severely discounted from their peak a few years ago, buyers are still cautious about buying a home for fear that the drop in prices we have witnessed isn’t over. Continue reading “Want to buy a home and be guaranteed you won’t lose money, even if the value drops?“
By Dennis Norman, on November 12th, 2009 The Justice Department announced it has filed a lawsuit today in federal court for the Eastern District of Missouri alleging a pattern or practice of violations of the Fair Housing Act by the owner and managers of Forum Manor Apartments, a federally-subsidized apartment complex, for refusing to rent to African-Americans and males, refusing to allow tenants to have African-American visitors, sexually harassing female tenants and retaliating against tenants who complained about such discrimination. Continue reading “Justice Department Files Fair Housing Lawsuit in Missouri Against Owner and Managers of Federally-Subsidized Property for Race and Sex Discrimination“
By Dennis Norman, on November 12th, 2009 Dennis Norman Monroe and Jefferson County saw sharp increases however.
RealtyTrac® released its Foreclosure Market Reporttmfor October showing that foreclosure filings (default notices, scheduled auctions and bank repossessions) were down 3.3 percent in October from the month before in the US and up 18.86 percent from the year before.
 Here in St Louis, overall the picture is much better. For the 16 counties and 1 city included in the RealtyTrac® report for the St Louis metro area foreclosure filings in October were down 29.47 percent from the month before and down 30.39 percent from the year before. Included in this data are 8 counties on the Illinois side of the river, St Louis City and eight other counties on the Missouri side. Continue reading “St Louis Real Estate News: Foreclosures in the St Louis metro area decrease over 29 percent in October“
By Ted Gayer, on November 11th, 2009 Publishers note: If you have been reading our blog for a while you are probably aware we have been supporters and advocates of the home-buyer tax credit as well as the extension and expansion of the credit, which happened last week. We realize however, there are people that do not support the credits for a variety of reasons. I came across the article below which was written prior to passage of the extension of the credit by Ted Gayer. I think this is a well written piece and does present the “other side of the coin”…Ted agreed to allow us to publish it to show another point of view on the credits.
 Ted Gayer, Co-Director of Economic Studies, Brookings Institute Extending and Expanding the Homebuyer Tax Credit Is a Bad Idea
In an earlier piece, I argued that the $8,000 first-time homebuyer tax credit was a poorly targeted subsidy that should be allowed to expire, as planned, at the end of November. Unfortunately, the President and Democratic Congressional leaders are moving toward extending the credit. Senator Dodd has suggested making the credit available to all home buyers (not just first-time buyers), subject to income requirements. Senator Dodd said he is working with Senator Isakson, who previously proposed a $15,000 tax credit to any buyer of a home. Continue reading “And now for the other side of the coin on the home-buyer tax credit“
By Dennis Norman, on November 10th, 2009 St. Louis mortgage rates dropped this week to almost record lows according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – November 10, 2009 * Continue reading “St. Louis Real Estate News – St Louis mortgage rates drop this week below 5 percent“
By Dennis Norman, on November 10th, 2009 Dennis Norman Foreclosure rates in St. Louis increased for the month of September over the same period last year according to a report released by First American CoreLogic. The report showed the St. Louis metro area to have a foreclosure rate of 1.26 percent in September, up just slightly from August’s rate of 1.24 percent, but up over 59 percent from a year ago when the rate was 0.79 percent.
The national foreclosure rate for September was over double the rate of St. Louis at 2.93 percent and was an increase of 75 percent from a year ago when the national foreclosure rate was 1.67 percent.
By Dennis Norman, on November 9th, 2009
- Dennis Norman
The percent of American home owners with mortgages in a negative equity position fell to 21 percent in the third quarter of this year, down from 23 percent in the second quarter, as home values stabilized in the short term and more underwater homeowners lost their homes to foreclosure, according to the third quarter Zillow Real Estate Market Reports.
By News Desk, on November 8th, 2009  Department of Justice Press Release
TAMPA—United States Attorney A. Brian Albritton today announced the results of a nine-month-long Mortgage Fraud Surge investigation that has resulted in charges against more than 100 defendants and involves allegations concerning more than $400 million in loans procured by fraud and more than 700 properties. U.S. Attorney Albritton is holding events throughout the district this week to highlight the announcement.
There are currently mortgage fraud-related charges pending against approximately 500 defendants in federal mortgage fraud cases around the nation. The cases concern both mortgage schemes designed to defraud mortgage lenders and “foreclosure rescue schemes” which prey on distressed homeowners. Continue reading “Mortgage Fraud Surge Investigation Nets More Than 100 Individuals Throughout Middle District of Florida“
By Dennis Norman, on November 6th, 2009 Dennis Norman If you are a homeowner facing losing your home in foreclosure but you do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification, you may have another alternative: The Deed for Lease program announced yesterday by Fannie Mae for homeowners with loans insured by Fannie Mae.
“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, Vice President of Fannie Mae. “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.” Continue reading “New alternative for some homeowners facing foreclosure; Deed for Lease“
By Dennis Norman, on November 5th, 2009 Dennis Norman UPDATE 11/06/09 5:14 p.m. – Thanks to Denis T who was commenting on this post, click here to go to the IRS site with information on the new tax credits.
UPDATE 11/06/09 1:00 p.m. – I just heard that a short while ago President Obama signed the bill into law. IT’S OFFICIAL! So if you are in the market for a home .. Go For It!
Continue reading “Home buyer tax credit extension update; House Passes Bill…On to President for approval“
By Dennis Norman, on November 4th, 2009 St. Louis mortgage rates dropped this week according to St. Louis-based Paramount Mortgage Company.
Low interest rates and the homebuyer tax credit, which is close to getting extended beyond the current expiration date of November 30th, should be tempting to buyers.
St. Louis Mortgage Rates – November 4, 2009 * Continue reading “St. Louis Real Estate News – St Louis mortgage rates drop this week“
By Dennis Norman, on November 4th, 2009 Dennis Norman UPDATE 11/05 2:00 pm – The House has passed the bill by a vote of 403 – 12 – It now goes to the President who is expected to sign today or tomorrow.
UPDATE 11/05, 12:35 pm- To read the section of H.R. 3548 that contains the details concerning the first-time home-buyer tax credit click here.
If you care to read the entire bill click here.
UPDATE: At 5:28 p.m. by a vote of 98 to 0 the Senate Passed H.R. 3548 – It now will go to the House where it is expected to pass and then go to the President for him to sign into law.
The Senate voted 97-1 at 12:16 pm today (eastern time) to end debate on H.R. 3548 (The Unemployment Compensation Extension Act of 2009) which includes the amendment extending and expanding the home-buyer tax credit program.
So where does it go from here?
- The Senate will need to vote on passage of the bill with the amendment.
- If the Senate passes the bill, then the House could take up the bill in the next day or so. The thought is they will accept the Seante bill and vote on it. However, if this is not the case and they make changes, then that will slow down the process.
- Assuming the House passes the bill without change then the bill will then go to the President for his signature. The National Association of REALTORS has stated the white house has indicated the President is planning to sign the bill if passed. Continue reading “Home buyer tax credit extension update; Senate Passes Bill“
By Charles Hugh Smith, on November 4th, 2009 Loose lending standards in government-backed mortgages is setting up the next wave of defaults and sharp declines in housing prices.
 Charles Hugh Smith, Of Two Minds Beneath the hype that housing has bottomed is an ugly little scenario: lending standards are still loose and the low-down payment, high-risk loans being guaranteed by government agencies are setting up the next giant wave of defaults and foreclosures.
You might have thought that the near-demise of risky-mortgage mills Fannie Mae and Freddie Mac would have cooled the supply of highly leveraged government-guaranteed mortgages–but you’d be wrong, for the Feds have compensated for the implosion of the Fannie/Freddie housing-bubble machines by ramping up their other two mortgage mills: FHA and Ginnie Mae. Continue reading “Setting Up the Next Leg Down in Housing“
By Debi Averett, on November 3rd, 2009 I posted yesterday on the Wall Street Journal article Report Sheds Light on Why Homeowners Walk Away. A couple of commenters on the WSJ article said why they were walking away from their mortgage, and I thought their comments were interesting enough to repeat. The first walker says that as a good borrower he is unable to have his loan modified, the second blames bank policies:
The banks (my lender is CITI) are unwilling to modify mortgages for the people able to pay. I suspect if the people underwater, but with money and good credit – you know, responsible people – were able to secure a more reasonable APR that made their monthly payments less painful, they’d more easily tolerate paying on that over-valued house. Continue reading “Why We’re Walking Away“
By Dennis Norman, on November 2nd, 2009 Dennis Norman UPDATED: 6:15 pm Central Time-
The Senate voted 85-2 this afternoon to end debate on the amendment..This is clears a procedural hurdle and will allow the bill and amendment to be voted on by the Senate, most likely on Tuesday or Wednesday….If passed by the Senate it would then need to go back to the House for passage and then on to the President.
Here’s the latest info I have on the possible extension of the home-buyer tax credit:
The Dodd-Lieberman-Isakson Amendment I spoke of in last Friday’s update was added to the unemployment bill and has not yet been voted on by the Senate, but is expected to be voted on this week. Assuming the Senate passes the bill, it will then go to the House where, according to the latest information from the National Association of REALTORS(R), it is expected to accept the Senate amendments, vote on the package and send it to the President for his signature. The White House has indicated that President Obama will sign the legislation. Continue reading “Home buyer tax credit update-November 2, 2009“
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