By Robert Fishel, on March 31st, 2010 NEW FHA Policies Go Into Effect April 5th
Applications for FHA-guaranteed mortgages exceeded an annual rate of 3 million in October; nearly triple the level in 2007. In 2006, when subprime and other Wall Street programs were at full speed, the annual rate for applications was less than 600,000. As a result the Federal Housing Administration (FHA) Commissioner David Stevens recently announced a set of policy changes to strengthen the FHA’s capital reserves. The changes announced are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing Continue Reading →
By Dennis Norman, on March 30th, 2010
Dennis Norman
Annual Rates of Decline In Home Prices Improving
This morning the S&P/Case-Shiller Index report for January was released showing that home prices in their 10 city and 20 city composite indexes decreased from December, the 10-city index was down 0.2 percent and the 20-city index down 0.4 percent. The 10-city January index was exactly even with January 2009, and the 20-city January index was down 0.7 percent from a year ago. The indexes include the major metropolition areas in the U.S. (details for metros included are in chart that follows).
All 20 metro areas and Continue Reading →
By Dennis Norman, on March 29th, 2010 Dennis Norman
Last week HUD announced changes to FHA home loan programs to provide refinancing options to homeowners who owe more than their home is worth. Under FHA’s new plan, existing underwater homeowners can refinance their existing non-FHA loan into a FHA loan as long as they are current on their loan and their current lender reduces their total mortgage debt by at least 10 percent of the loan amount.
The total mortgage amount for the borrower after refinancing cannot be greater than 115 percent of the current value of the home, bring the loan amount for Continue Reading →
By Dennis Norman, on March 26th, 2010 Dennis Norman
Back in early December I did a post about a new program that was announced in November, the Home Affordable Foreclosures Alternative (HAFA) Program which is scheduled to go into effect April 5, 2010. There was recently supplemental documentation published as well as FAQ’s about the program and I have to admit, it seems to me the government is getting it right with this program.
THE HAFA PROGRAM:
The Home Affordable Foreclosure Alternatives Program provides financial incentives to loan servicers as well as borrowers who do a short-sale or a deed-in-lieu to avoid foreclosure on Continue Reading →
By Dennis Norman, on March 25th, 2010 Dennis Norman
The U.S. Department of Commerce released a report showing the sale of New Homes in February were at a seasonally adjusted annual rate of 308,000, a 2.2 percent decrease from the revised January rate of 315,000 and is 13.0 percent below a year ago. The inventory of new homes (seasonally adjsuted) at the end of February is 9.2 months a slight increase from January’s inventory of 9.1 months.
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 Continue Reading →
By Dennis Norman, on March 24th, 2010 Dennis Norman
According to the latest report from the National Association of REALTORS(R), existing home sales in the US in February decreased 0.6 percent to a seasonally adjusted-annual rate of 5.02 million units in February from a revised level of 5.50 million units in January, however this does represent an increase of 7.0 percent from a year ago when the rate was 4.69 million units (seasonally adjusted).
February’s Numbers Show Real Estate is “Local”
Reinforcing the fact that “all real estate is local” the February Existing Home Sales report paints quite a different picture of the housing market depending Continue Reading →
By Robert Fishel, on March 24th, 2010 PLASTIC TAKES PRIORITY.
Consumers are paying more attention to their credit card payments and making sure they are current according to a newly released report from TransUnion. The credit information management company analyzed 27 million anonymous consumer records randomly sampled during the six quarters from 2008 to 2009. Their selection criteria included consumers with at least one credit card and a current mortgage. Consumers who are delinquent on their credit cards and current on their mortgages decreased to 3.6% from 4.1% in the time period of the study. However, during the first quarter of 2008 a “flip” occurred where the Continue Reading →
By Dennis Norman, on March 23rd, 2010 Dennis Norman
UPDATE: March 26, 2010: Pres Obama signed HR 35909 into law on March 23, 2010. Yesterday the House and Senate approved the final version of HR 4872 and it now goes to the President for his signature (this is the bill that “taxes” real estate to pay for health care as I explained below) – end of update
Unless you live in a cave you have probably heard by now that yesterday Congress passed HR 3590, the “Patient Protection and Affordable Care Act”, or to put it more short and to the point, Pres. Obama’s Continue Reading →
By Dennis Norman, on March 22nd, 2010
Dennis Norman
The Federal Reserve announced it will stop purchasing mortgage-backed securities by the end of March.
In November, 2008, the Federal Reserve announced, in an effort to help the housing market, it would purchase mortgage-backed securities. Then, in March, 2009, the Fed increased the total amount of money they would invest in such securities to $1.25 trillion and estimated that they would complete those purchases by the end of first quarter 2010.
The Fed’s action I think certainly added some liquidity and confidence to the ailing housing market and now, that the time has come Continue Reading →
By Dennis Norman, on March 19th, 2010
Dennis Norman
Increased prices on distressed home sales in St Louis are the reason for St Louis’s home price gains.
A report released by First American CoreLogic shows St. Louis metro area home prices, including distressed sales, increased 0.60 percent in January 2010 compared to January, 2009. December 2009’s home price index for St. Louis was up 1.54 percent from the year before. Excluding distressed sales, the January 2010 home price index was actually down 0.55 percent from a year ago, compared with December 2009’s home price index which was up 0.59 percent from the Continue Reading →
By Dennis Norman, on March 18th, 2010 Dennis Norman
According to the Economics and Mortgage Market Analysis report just published by Fannie Mae, the weather was the culprit for the slow-down in home sales at the beginning of this year however, we did not get the boost they were anticipating from the extension of the tax credits. “Unfortunately, despite the high hopes associated with the extended and expanded homebuyer tax credit, housing activity appears to have faced a setback that went beyond the impact of adverse weather conditions. ” On a somewhat positive note, the analysts state they view the housing setback “to be a Continue Reading →
By Robert Fishel, on March 17th, 2010 LAST CALL FOR HOMEBUYER’S TAX CREDITS!
Prospects are scurrying to sell and/or buy homes before next month’s tax credit deadline.” “It’s been absolutely nuts, I have showings galore and contracts are coming in left and right,” commented one real estate agent. To qualify for the credit, buyers must have fully executed sales contracts in place by April 30 and the deal must close by June 30. First-time home buyers are eligible for up to $8,000. Buyers who have owned a home for five consecutive years within the past eight years can get a credit of up to $6,500. Other Continue Reading →
By Dennis Norman, on March 16th, 2010
The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for February 2010 showing a decrease in new home construction activity from February, but siginificant increases from a year ago..
The report shows the following:
Building permits issued for single-family residences in February were at an annual rate of 503,000 which is 0.2 percent below the revised January rate of 504,000 and an increase of 32.0 percent from a year ago when the rate was 381,000. Dragging down the overall permit numbers for housing are multi-family dwellings with Continue Reading →
By Dennis Norman, on March 15th, 2010 The Internet Crime Complaint Center (IC3) and the Federal Bureau of Investigation have published a report about common real estate scams and rental scams they are finding and how to avoid them. Like most scams there are warning signs and red flags that can help you avoid falling victim; knowing what to look for is key.
The IC3 reminds people to be cautious when using the internet to either advertise real estate for sale or rent or to find a property to rent or buy.
For Landlords and Sellers of Property:
Look out for: Rental scams occur when the victim Continue Reading →
By Dennis Norman, on March 13th, 2010 Missouri’s foreclosure rate increased in February by 2.34 percent from January but is down 3.68 percent from February 2009.
RealtyTrac® released its February 2010 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 308,524 U.S. properties during the month of February, a decrease of 2 percent from the previous month but still 6 percent above the level reported in February 2009. This translates into one in every 418 U.S. housing units receiving a foreclosure filing in February.
Missouri ranked 30th in the U.S. in terms of foreclosure rate in Continue Reading →
By Dennis Norman, on March 12th, 2010 Dennis Norman
Appellant Says Bellefontaine Ordinance is Unconstitutional but City Inspector Still Enforcing It
Last month I did a post about a decision handed down by the Missouri Court of Appeals-Eastern District that was a significant victory for St. Louis property owners by striking down part of an ordinance that violates our property rights as well as our First Amendment Rights to free speech.
Unfortunately, it appears no one told the City of Bellefontaine Neighbors they lost the case, or if they did, some may be choosing to ignore the court’s decision. I say this because I heard Continue Reading →
By Dennis Norman, on March 12th, 2010 Dennis Norman
Update: March 23, 2010: In spite of the concern of many organizations including the St. Louis Association of REALTORS, the Mortgage Bankers Association and the Title Insurance folks, the Board of Alderman passed the vacant property ordinance on March 12th – Now that lenders and title companies are aware of potential title and lien issues with this bill I have no doubt investors, and even homeowners, are going to run into some roadblocks when trying to finance property in the City of St. Louis – 2/3 of the Alderman voted in favor of the bill:
The Continue Reading →
By Robert Fishel, on March 10th, 2010
Last Friday’s suprisingly strong payroll figures likely reinforced for many investors that the next time the Fed makes a change to their monetary policy strategy-it will likely to raise short-term interest rates. The actual date of such an event may be months away-but an increasing number of “stronger than expected” economic reports are making it difficult for mortgage interest rates to move lower. A growing number of business economists believe the U.S. central bank’s policy’s are too stimulative and expect the Federal Reserve to raise benchmark interest rates within six months. The Fed has said continued high rates of Continue Reading →
By Dennis Norman, on March 9th, 2010 Dennis Norman
The Mortgage Bankers Association (MBA) released its report on the performance of commercial and multifamily mortgages in the fourth quarter of 2009. Their last report from a year ago showed that commercial and multifamily mortgages were among the best performing loans held by banks and thrifts. Now, a year later, the data still looks good and shows that commercial and multifamily mortgages continue to have the lowest charge off rate of all loan types at banks and thrifts and also perform better than their overall portfolios as well.
This is good news for an already-struggling Continue Reading →
By Dennis Norman, on March 9th, 2010
Dennis Norman
This story is part of my ongoing series on how local laws negatively impact the property rights of property owners in the St. Louis area
Unfortunately I don’t have to try too hard to find examples of local laws that seriously impact the rights of property owners in the St. Louis area, particularly those property owners that are landlords or other investors.
My story today comes from a friend of mine, a St. Louis REALTOR(R) that buys homes for his rental portfolio. For the sake of the article, and to help him avoid Continue Reading →
By Dennis Norman, on March 5th, 2010
Dennis Norman
St. Louis Mortgage Delinquencies and St. Louis Foreclosure Rate hit Record Highs
A report released by First American CoreLogic showed the St. Louis metro area to have a foreclosure rate in January of 1.42 percent up slightly from December’s rate of 1.36 percent and an increase of 46.39 percent from the year prior when the rate was 0.97 percent.
The national foreclosure rate for January remains over twice the rate of St. Louis at 3.19 percent and was an increase of 60.3 percent from a year ago when the national Continue Reading →
By Dennis Norman, on March 4th, 2010 Dennis Norman
Today the National Association of REALTORS released it’s January Pending Home Sales Index showing a decrease of 7.6 percent in the index from December, 2009 to January 2010 (seasonally adjusted) and a 12.3 percent increase from last year.
Here are highlights from the report:
January”s pending home sales index (seasonally adjusted) was 90.4 (the index is based upon 100.0 being equal to the average level of sales activity in 2001 which we could call the last “normal” year) which was a decrease of 7.6 percent in the index from December’s revised index of 97.8 and an Continue Reading →
By Robert Fishel, on March 3rd, 2010
Low foreclosures, stable home prices and affordability make eighth-ranked St. Louis a good bet for home buyers, according to a report released by Forbes.com last Friday. Forbes gathered data from the National Association of Home Builders and Wells Fargo’s Housing Opportunity Index (HOI). The index measures median home prices against median incomes. Additional data overlays included Moody’s one-year forecast for the Case-Shiller Home Price Index of home prices and RealtyTrac’s 2009 foreclosure report. Rankings from all of these data sources were considered in determining the overall score. The top ten best housing metro areas: Pittsburgh, PA Louisville – Jefferson Continue Reading →
By Dennis Norman, on March 3rd, 2010 Dennis Norman
You may want to consider possible legal issues before deciding to “walk away”
Homeowners who are considering “walking away” from their home to avoid making their mortgage payment need to know that their mortgage company may try to file a lawsuit to recover the amount owed on the home.
In addition, homeowners who sell their home for less than the amount they owe – a process called a “short sale” — may be sued for the unpaid balance, even after the sale of the home. Finally, homeowners with unpaid home equity loans or second mortgages may also Continue Reading →
By Dennis Norman, on March 2nd, 2010 Dennis Norman
UPDATE June 7, 1010 – Here are links to the Forms from MHDC to claim the tax credit as well as some sample forms they have provided showing how to fill them in:
Program ApplicationHome Purchase AffidavitPromissory NoteHope Program Information and InstructionsSample Forms
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Dennis Norman
Back in December I wrote a post about a $35 million economic development initiative that was approved by the Missouri Housing Development Commission which included $15 million to pay the first-year of property taxes for qualified homebuyers who purchase a new or existing home after January Continue Reading →
By Dennis Norman, on March 1st, 2010 Dennis Norman
The United States Court of Appeals for the Eleventh Circuit recently consdered an appeal by the plaintiffs of a class action lawsuit again D.R. Horton, Inc. and DHI Mortgage, Co brought by John R. Yeatman and Eleanor E. Yeatman on behalf of themselves and all similarly situated individuals.
The lawsuit stems from the Yeatman’s purchase of a home from DR Horton in 2006 in which the purchase agreement gave the Yeatmans the option of receiving a discount on their closing costs on the house, provided they used DHI Mortgage as their mortgage lender. This was not Continue Reading →
By Dennis Norman, on February 26th, 2010 Dennis Norman
What do sex offenders and owners of vacant property have in common?
UPDATE: March 8, 2010 – I found out today the bill that was actually perfected last Friday was a floor substitute…Unfortunately the changes made to the bill were minor- they changed the public data base so that you have to enter a property address in order to look up the owners personal information (including phone number and email address) and they changed the wording to no longer make real estate agents and property managers responsible for property they don’t own. So basically, just a little Continue Reading →
By Dennis Norman, on February 25th, 2010 Dennis Norman
According to a report issued this morning by the the Federal Housing Finance Agency (FHFA) St. Louis area home prices increased by 1.32 percent in 2009. Granted that’s not much but, hey, after what we’ve seen the last couple of years in the housing market I think this is very good news.
This information comes for the FHFA’s purchase-only price index which is based upon repeat sales of the same single-family properties therefore making it a much more accurate barometer of the market than just looking at median prices of homes sold as many reports do. Continue Reading →
By Robert Fishel, on February 24th, 2010
When considering historically low interest rates, competitive home values along with the $8,000 First-Time Homebuyer and $6,500 Repeat Homebuyer Tax Credits, potential homebuyers still have a great opportunity.
THE TIME TO ACT IS NOW.
The Federal Reserve indicates it will stop buying mortgage-backed securities toward the end of the first quarter. Most mortgage experts believe that mortgage interest rates will rise when mortgages go off “Fed support” as private investors require higher rates to compensate for the risk.
The deadline for the First Time/Repeat Homebuyer Tax Credits is an executed contract by April 30, 2010 with a Continue Reading →
By Dennis Norman, on February 23rd, 2010 Over Fifteen Percent of Missouri Borrowers are Underwater-Another 5.6 Percent Are Almost Underwater
Dennis Norman
According to a report released today by First American CoreLogic more than 11.3 million U.S. mortgages, or 24 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 December 31, 2009.
There were approximately 600,000 more borrowers underwater on December 31, 2009 than just three months earlier. In addition, there were an additional 2.3 million mortgages approaching negative equity at the end of last year .
Together, Continue Reading →
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