One of the issues receiving significant attention following the announcement of the REALTOR® commission suit settlement is the topic of buyer commissions, specifically regarding whether a buyer has to pay them and how lenders will treat the commissions.
In a recent letter to the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac, NAR and MBA sought confirmation on the treatment of buyer agent commissions following a proposed settlement agreement in the Burnett et al and Moehrl et al cases.
What does this mean for homebuyers? Under the settlement, cooperative commissions will no longer be displayed on Multiple Listing Services (MLS), but listing brokers and sellers will still be able to offer compensation for buyer broker services through other means. Additionally, the settlement does not prohibit home sellers from paying buyer agent commissions directly.
NAR and MBA believe that FHA and Government-Sponsored Enterprise (GSE) policies should continue to exclude seller or listing agent payments of buyer agents’ commissions from Interested Party Contributions (IPCs). IPCs are concessions from the seller to the buyer for items traditionally paid by the buyer, such as loan closing costs or rate buy-downs. Maintaining this practice is essential to ensure that the flow of mortgage capital to homebuyers remains uninterrupted.
As a homeowner or potential buyer, it’s important to stay informed about these developments and how they may impact your buying or selling process. NAR and MBA have requested confirmation from the FHFA, FHA, Fannie Mae, and Freddie Mac as soon as possible to prevent any confusion and potential disruptions that may cost you money or even jeopardize your home purchase.
The MBA and NAR Letter
(click to view entire letter)
The latest release from Fannie Mae on the Home Purchase Sentiment Index® (HPSI) is particularly illuminating, showing a notable uptick in consumer optimism towards mortgage rates. For the first time since March 2022, the HPSI has climbed to 70.7, a 3.5-point increase driven largely by heightened confidence in job security and an unprecedented share of consumers expecting mortgage rates to dip in the coming year. This optimism isn’t just numbers on a page; it’s a palpable shift in the air, with 82% of respondents now feeling secure in their employment prospects, and an all-time survey high of 36% predicting lower mortgage rates ahead. Yet, despite this optimism, the stark reality remains that only 17% believe it’s a good time to buy a home, underscoring a persistent pessimism around purchasing conditions.
Fannie Mae Home Purchase Sentiment Index Chart
(click on chart for current, live-interactive chart)
Traci Casper, NAR President
In a recent interview with CNBC, Traci Casper, the President of the National Association of Realtors (NAR), shared her views on the current state of the housing market and the implications of recent commission lawsuits. Her remarks provide an insight into the challenges and changes shaping the real estate industry, particularly relevant for the St. Louis market.
Casper highlighted the impact of fluctuating mortgage rates on the housing market, mentioning, “We do have still such a pent-up buyer pool that’s just been waiting on the sidelines… we are starting to feel them come back in.” This observation reflects the interconnectedness of mortgage rates and buyer activity, a significant factor in real estate market dynamics.
Regarding the commission lawsuits, Casper spoke about the potential effects on buyers and sellers. She explained, “Our buyers are already struggling to come up with a down payment… We don’t want to see is the marginalization of those buyers.” This statement is in line with the NAR’s consistent message suggesting that lower-income buyers might be negatively impacted if sellers stop paying buyer agent commissions. I counter Casper’s position, highlighting the disagreement within the industry. Many argue that buyers are indirectly paying the commission since it is generally factored into the home’s selling price. If the payment structure shifts to where buyers directly pay the commission, this could lead to a decrease in the seller’s price, as they would no longer bear this cost. This change might not increase the overall cost to the buyer, but it could affect sellers’ pricing strategies. Additionally, I believe that lenders will adapt to these changes. Institutions like Fannie Mae, Freddie Mac, FHA, and VA are likely to revise their policies to allow commissions paid by buyers to be included in closing costs, counted as part of the down payment, or financed.
Every month, Fannie Mae surveys consumers to gauge their sentiment on whether it’s a good time to buy or sell a home. The results are published in their Home Purchase Sentiment Index® (HPSI). In the most recent HPSI report, 84% of respondents said they felt now was a bad time to buy a home. This is the highest percentage holding this view since the survey’s inception in 2012.
On the flip side, 63% of those surveyed believed now was a good time to sell a home. This is a slight dip from last month’s 66%.
As for interest rates, a mere 17% of consumers expect mortgage rates to decrease in the next 12 months
Every month Fannie Mae surveys consumers to gauge their sentiment toward whether its a good time to buy or sell a home and publishes the result in their Home Purchase Sentiment Index® (HPSI). In the most recent HPSI report, 78% of the people surveyed said they felt now was a bad time to buy a home, this is a decline from 80% in May. Conversely, 22% of consumers think now is a good time to buy a home up from 19% the month before. Interestingly enough, everyone had an opinion as the percentage of those that did not dropped to 0%, the first time it’s hit zero in the history of the survey.
Still a good time to sell..
Now is a good time to sell according to 64% of the consumers surveyed, which is down from 65% the month before and 36% think it’s a bad time to sell, up from 34% the month before.
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Fannie Mae Home Purchase Sentiment Index Chart
(click on chart for live, interactive chart)
Is Now A Good Time To Sell?
(click on chart for the complete report)
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The headline of this article is not clickbait nor sensationalism. In fact, it’s based on something that’s about to happen. Fannie Mae, which, along with Freddie-Mac, is involved in almost two-thirds of the home loans in the United States, is set to release a new Loan Level Price Adjustment Matrix (LLPA) on May 1, 2023. The LLPA is used by lenders to determine the cost (interest rate) of a loan for a borrower, and it’s not entirely new, as there’s an existing one already in effect. The new LLPA is similar to the current one, as it also charges varying amounts based on the loan to value (LTV) and credit score.
What’s different in the new LLPA is that the cost is going up for borrowers with better credit and going down for borrowers with a lower credit score. To explain briefly how LLPA works, the higher the percentage of the purchase price a borrower is borrowing, the higher the fee. This percentage is known as the “LTV.” It makes sense that a loan where the borrower made a smaller down payment (e.g., 3%) has more risk associated with it than a loan where the borrower made a 20% down payment. Furthermore, the higher the credit score a borrower has, the lower the fee will be. This is because credit scores are based on past payment performance, and it’s logical that there’s less risk to a lender for a mortgage where the borrower has a higher credit score.
Borrowers with a higher credit score will still get better rates:
It’s essential to point out that Fannie Mae hasn’t entirely lost its mind by charging higher-risk borrowers less than it’s charging lower risk borrowers. For instance, a borrower with a 740 credit score borrowing 95% or more of the purchase price will be charged a 0.125% LLPA fee come May 1st, while a borrower with a 630 credit score borrowing the same amount will pay a cost of 1.75%. So, the borrower with the worst credit score will pay an LLPA fee approximately 14 times higher than a borrower with the best credit score.
So what’s the big deal then, what’s different?
The headlines surrounding this change relate to how Fannie Mae has adjusted its current pricing. The change appears to punish better credit risk borrowers and reward higher risk borrowers. For example, a borrower making a 20% down payment with a high credit score will be charged higher rates come May 1st. In contrast, a borrower with the same down-payment but a lower credit score will get charged a lower rate than the current one. Currently, a borrower with a 740 credit score is charged a 0.50% LLPA fee, but beginning May 1st, that charge will go up to 0.875%. However, a borrower with a credit score of 639 currently is charged 3.0%, and on May 1st, that will drop to 2.75%.
Some high credit, strong borrowers will benefit, but overall the winners are borrowers with the worst credit scores…
This week the Federal Housing Finance Administration (FHFA) announced that the limits for all conforming home loans to be acquired by Fannie Mae and Freddie-Mac (most of the conventional home loans originated) will increase to $726,200 on January 1, 2023. This is an increase of $79,000 for the current loan limit of $647,200.
Also this week, the Federal Housing Administration (FHA) announced that the limits for all FHA loans will increase to between $472,030 and $1,089,300 for single-family homes depending on the area the property is located in. Below are the limits for the low cost mortgage areas as well as high-cost mortgage areas:
Low Cost Area: (The entire state of Missouri falls into this category)
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- One-unit: $472,030
- Two-unit: $604,400
- Three-unit $730,525
- Four-unit: $907,900
High Cost Area:
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- One-unit: $1,089,300
- Two-unit: $1,394,775
- Three-unit 1,685,850
- Four-unit: $2,095,200
The Veteran’s Administration, as of 2020, removed the lending limit for veteran’s with full entitlement so there remains no limit on VA loans.
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Monthly, Fannie Mae surveys consumers to gauge their sentiment toward whether it’s a good time to buy or sell a home and publishes the result in their Home Purchase Sentiment Index® (HPSI). As the chart below illustrates, in the most recent survey, which was just released, the HPSI index was at 60.8, the lowest level in nearly 11 years. No doubt the higher interest rates and softening economy are taking their toll on homebuyer’s optimism about the prospects of buying a home in the current market. This marks the seventh-consecutive monthly decline in the index and the first time since May 2020 that more consumers thought home prices would decline than not. In September 2022, the month covered in the latest report, only 19% of consumers thought it was a good time to buy a home while 59% felt it was a good time to sell.
You can access all the data and charts from the Fannie Mae Purchase Sentiment report here.
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Fannie Mae Home Purchase Sentiment Index Chart
(click on chart for live, interactive chart)
Yesterday, Fannie Mae released their October housing forecast in which they forecast, among other things, where home sales and prices are headed. The report incudes a forecast for next year, which included:
- Home prices in 2023 to decline 1.5% from 2022
- Home sales to finish 2022 down nearly 18% from last year and drop another 22% in 2023
- New home construction to end 2022 down 3.6% from last year and drop another 25% in 2023.
- Mortgage Interest Rates will continue to rise the rest of these year, ending the year at 6.7% and then will ease back to 6.4% in 2023.
See Fannie Maes Complete Housing Forecast HERE
Every month Fannie Mae surveys consumers to gauge their sentiment toward whether its a good time to buy or sell a home and publishes the result in their Home Purchase Sentiment Index® (HPSI). In the most recent HPSI report, 79% of the people surveyed said they felt now was a bad time to buy a home, which is the highest percentage of people feeling this way since the survey was begun in 2012. Seventeen percent of those surveyed felt it was a good time to buy a home and 4% didn’t know whether it was or not.
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Fannie Mae Home Purchase Sentiment Index Chart
(click on chart for live, interactive chart)
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Yesterday, I shared that, according to the Fannie Mae Home Purchase Sentiment Index (HPSI), nearly three-fourths of consumers think now is not a good time to buy a home. However, the same survey that produced that data also showed that tw0-thirds of the consumers that responded said if they would buy a home vs rent if they were in fact going to move. As our chart below illustrates, for 3 of the last four months, 66% indicated they would buy. While the percentage that indicated they would buy was as high as 72% last May, it was in fact the same, at 66% a year ago in March as well as the year before that in March. So, while consumers don’t think now is a good time to buy, it appears many are doing it or would do it, anyway.
Every month Fannie Mae surveys consumers about owning and renting a home as well as about other issues related to the housing market and economy and from the results publishes its Home Purchase Sentiment Index (HPSI). One of the components of the index is what the sentiment is on whether now is a good time to buy a home or sell a home. In April 2022, HPSI consumers’ sentiment on whether now is a good time to buy a home hit an all-time low with just 24% of respondents saying now is a good time to buy a home. As the charts below illustrate, 73% of respondents said now was a bad time to buy a home.
Seventy-Percent of Consumers Think Now is a Bad Time To Buy a Home-83% Of Millennial’s Feel That Way
According to Fannie Mae’s® Home Purchase Sentiment Index® (HPSI), 70% of consumers say it’s a bad time to buy a home while 25% feel it’s a good time to buy. As the chart below illustrates, this is the highest level reached for it not being a good time to buy in the 3-year period the chart covers. Actually, this is the highest level it’s reached since Fannie Mae began tracking the data in 2010.
Millennials are pessimistic about home buying…
The bottom chart also reflects the sentiment of consumers in the survey about buying a home now but is broken down by age group. This chart shows the net percentage of those saying it’s a “good time to buy” less those saying “it’s a bad time to buy”. The higher the line goes on the chart the more the good time to buy folks outweigh the bad time to buy. As you can see, the black line, which depicts consumers in the 35-44 age group is the lowest on the chart with a net of -68. This is the result of 83% of the consumers in this age group saying it is a bad time to buy and just 15% saying it’s a good time, resulting in a net of -68%.
Seniors have a better feeling about the market…
The red line depicts the sentiment of those 65 years and older and the net percentage there is -26%, so, while the percentage of people that feel now is not a good time to buy still outweighs the ones in this age group that think it is a good time, the resulting difference is about 40 points better than the millennial group.
Every month Fannie Mae surveys consumers about owning and renting a home as well as about other issues related to the housing market and economy and from the results publish their Home Purchase Sentiment Index® (HPSI). One of the components of the index is what the sentiment is on whether now is a good time to buy a home or sell a home. In the April 2021 HPSI 49% of consumers felt home prices would go up in the next 12-months and 54% felt interest rates would increase in the next 12-months.
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Every month Fannie Mae surveys consumers about owning and renting a home as well as about other issues related to the housing market and economy and from the results publish their Home Purchase Sentiment Index® (HPSI). One of the components of the index is what the sentiment is on whether now is a good time to buy a home or sell a home. In the April 2021 HPSI consumers sentiment on now being a good time to buy a home hit an all-time low with just 47% of respondents saying now is a good time to buy a home. As the charts below illustrate, 67% of respondents saiid now was a good time to sell a home which is just one percentage point away from the record high of 68% back in April 2018.
It’s not surpassing that if a near record number of people think now is a good time to sell that the sentiment on the buyer’s side would be the opposite as having a truly balanced market not favoring buyers or sellers is hard. In fact, the last time it was even close to balanced was in the latter part of 2012 and the early part of 2013 when roughly 45% – 55% of consumers felt it was both a good time to buy as well as sell a home.
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Continue reading “Consumer Sentiment Toward Now Being A Good Time To Buy A Home Drops To Record Low“
Lately, I’ve noticed several articles questioning whether the kind of crazy real estate market we’ve in for a while now is reminiscent of the early 2000’s which lead to a housing bubble that eventually burst in 2008. Granted, even in St Louis where we tend to not see the market extremes one way or the other like the coasts do, one could get the idea that maybe we’re headed that way with buyer’s fighting over new listings and bidding wars that have homes often selling for over the list price. However, in my humble opinion, this market is very different than the 2000 – 2007 market and we are not headed to a crash at this point.
Before I go further…my disclaimer…
I’m not an economist and I didn’t even stay at a Holiday Inn Express last night, I’m just a long-time real estate industry data junkie who has ridden the real estate roller coaster for 40+ years and have some thoughts on the current state of the market. While my comments may apply outside of our local market, my focus and commentary are on the St Louis housing market.
What’s different now from before…
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Continue reading “Why St Louis Is Not Headed Toward Another Housing Market Bubble or Crash“
Last week, the Federal Housing Finance Agency (FHFA)announced that effective January 1s, 2021, the maximum loan amounts for Fannie Mae and Freddie Mac conforming loans will be increased from $510,400 to $548,250. Once a home buyers loan amount exceeds the Fannie and Freddie limits, their loan is considered a “jumbo” loan and typically less attractive terms, so an increase in the Fannie and Freddie limits is definitely helpful to home buyers in higher price ranges.
Fannie Mae and Freddie Mac are also increasing the loan limits for loans to purchase multi-family properties as well. The multi-family property limits for 2021 are:
- Two Units – $702,000
- Three Units – $848,500
- Four Units – $1,054,500
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Fannie Mae issued their monthly housing forecast for April which includes, among other data, a forecast of what mortgage interest rates will be in the coming months. Last months forecast had projected that mortgage rates would continue to decline moving forward but only to a low of 3.1% before the end of 2021 while the April forecast predicted the interest rate on a 30-year fixed-rate mortgage would fall to 2.9% in the 2nd quarter of 2021 and stay there through the balance of the year.
If you’re able, now’s the time to buy!
While the effects of the COVID-19 pandemic, such as job loss, is going to take some would-be home buyers out of the market, for those that are still able to buy, now is a great time to buy a home. There are many factors that play in favor of buyers today, such as the fact that there are about 1/3 fewer of them (buyers in the market) now than this time last year, sellers that want to have fewer people coming through their homes and interest rates. As our chart below shows, not only are rates low now, they are projected to go much lower even.
Why not wait until next year when the rates hit their lowest?
Good question, but there are several reasons not to wait. First off, the rates shown on my chart are “projections”, or to put it another way “an educated guess”, so there is no guarantee rates will actually come down as predicted. In addition, once the stay at home orders go away and we start moving back to something closer to normal, I anticipate there will be a flood of buyers to the market which, along with lower interest rates (if that happens) will likely drive home prices up. So, for buyers that are able, they may get a better buy today, with less competition, still get a good interest rate and then if rates do fall as predicted can easily refinance to take advantage of lower rates.
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Fannie Mae Mortgage Interest Rate Forecast April 2020 (Chart)
Data source: Fannie Mae – Copyright ©2020 St Louis Real Estate News, all rights reserved
Fannie Mae, the leading source of financing for home mortgages in the U.S. (they purchase home loans from lenders), earlier this week announced some payment deferral plans to help borrowers. Fannie Mae is authorizing it’s loan servicers to provide options to borrowers that have fallen delinquent or are having trouble making their house payments, which is likely a result of the financial impact on them of the COVID-19 pandemic.
While it’s complicated, there are several options that Fannie Mae has made available to loan servicers to offer to borrowers that are struggling. Complete details are in Fannie Mae Lender Letter (LL-2020-05) but the highlights are below:
- Eligibility criteria for a Payment Deferral:
- The mortgage loan must be a conventional first lien mortgage loan, and may be a fixed-rate, a step-rate, or an ARM.(the property may be vacant)
- As of the date of the evaluation, the mortgage loan must be 30 or 60 days delinquent (i.e., the borrower is not past due for more than two full monthly contractual payments); and
- such delinquency status must have remained unchanged for at least three consecutive months, including the month of the evaluation.
- And, the loan servicer must confirm that the borrower:
- has resolved the hardship,
- is able to continue making the full monthly contractual payment, and
- is unable to reinstate the mortgage loan or afford a repayment plan to cure the delinquency.
- The mortgage loan must be a conventional first lien mortgage loan, and may be a fixed-rate, a step-rate, or an ARM.(the property may be vacant)
There are some other conditions as well but those are the primary ones. Assuming the borrower meets these requirements, there are several options available to them. There are many options the lender can offer which include:
- Defer the past due payments (without interest accruing) until the mortgage loan matures, until the property is sold or the loan is refinanced or paid off.
If the hardship that caused the borrower to fall behind has been resolved however the borrowers do not have the ability to pay the delinquent payments, another option is for the lender to offer to increase future payments for a period of time to make up for the delinquent payments. If the borrower cannot afford the increased payments, that is when the payment deferral plan above kicks in. If the borrower’s hardship has not been resolved, then Fannie Mae can offer a forbearance plan.
If you are a homeowner and having problems making your payments, the best thing to do is immediately call your loan servicer to see what options are available to you.
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In response to the coronavirus pandemic, the U.S. Dept. of Housing and Urban Development (HUD), as well as the Federal Housing Finance Agency (FHFA) (which oversees Fannie Mae and Freddie Mac), directed their loan servicers to suspect foreclosures and evictions for at least 60 days to help those people affected.
In a statement, Mark Calabria, the Director of the FHFA, said that borrowers affected by the coronavirus who are having difficulty paying their mortgages should reach out to the mortgage servicers as soon as possible.
HUD Secretary Ben Carson said that “The halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times,”
After mortgage interest rates on a 30-year fixed rate mortgage nearly hit 5 percent back in November, they have steadily declined and this past week fell to an average of 4.37% according to the Freddie Mac Primary Mortgage Market Survey. Last weeks 30-year fixed rate mortgage rate of 4.37% was the lowest average rate report by the survey since Feb 8, 2018, when the average rates were 4.32%.
The outlook for mortgage interest rates looks promising as well with the most recent Fannie Mae Housing Forecast predicting the 30-year fixed rate will stay at 4.5% through the end of 2020.
30-Year Fixed Rate Mortgage Average In The U.S.
I am always marveled by great marketing and promotion therefore I must give a tip of the hat to Zillow® for their new “Instant Offer” program. First, it’s getting them tons of attention and press, particularly within the REALTOR® community, which is probably where it is the most beneficial to them since real estate agents are, after all, Zillows’® paying customers. Courtesy of Inman News, REALTOR.com and others, this new program has received the equivalent of thousands and thousands of dollars of free advertising, which is the type of thing I love and dream of getting this type of free publicity for my firm.
Instant Offer concept is not new…
So, why do I say it’s nothing new? I have nothing against Zillow® (although many in the REALTOR® community are not fans as they see them as a threat) however, I really don’t see anything “new” or revolutionary about their instant offer program. Basically, according to their website, what their program does is allows you to submit information on your home to them which then goes to a group of national investors who then submit you a cash offer for your home. Then, an inspection is done of your home (I’m guessing the offer is subject to this inspection being favorable) and if so, then you proceed to closing. Homes have been sold in this manner for decades, including right here in St Louis, so it’s nothing new. When I entered the real estate business here in St Louis in 1979, there were many “speculators” in St Louis, including the broker I worked for, that would make sellers a cash, as-is, offer on their home and would offer to close as fast as 24 hours. So, basically, the same thing as the “new” Zillow® instant offer program with a few exceptions including that our offers were typically unconditional (other than that the seller had good title), truly as-is and we were local, people the sellers could meet, talk with and establish a relationship with as they contemplated whether or not this approach to selling their home was a good decision. Over the years, I was involved in the purchase of over 2,000 homes in this manner right here in St Louis. Today, thanks to internet webinars, reality TV shows and just a wealth of information being readily available, there are many, many people, that, in addition to the established “professional investors”, out there trying to buy real estate in this manner.
Do you want an “instant offer” on your home?
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Continue reading “Zillow’s “New” Instant Offer Is Nothing New“
In mid-April the Federal Housing Finance Agency (FHFA) announced a new program aimed to help homeowners with a Fannie Mae or Freddie Mac loan that are seriously underwater on equity, meaning that their mortgage balance is at least 115 percent of the current value of their home. This new principal reduction modification program offers, to those that qualify, a one-time reduction in the balance of their mortgage to bring them out of a negative equity position.
Below is an outline of the program details as well as link to Principal Reduction Fact Sheet:
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Principal Reduction Program Fact Sheet
Find the Current Value of your home in under a minute!
Continue reading “Help For Underwater Homeowners – One-time principal reduction plan“
St Louis bank and government owned home sales are down as banks and government enterprises such as Fannie Mae, FHA, VA and Freddie Mac whittle down their inventory of foreclosed homes while, at the same time, new mortgage delinquencies and foreclosure rates continue to decline. While this is good for the St Louis real estate market, it makes it tough on investors, as well as owner occupants, who are looking for a deal on a distressed sale, as the competition is growing fierce driving prices up and opportunities down.
St Louis Bank and Government owned home sales down over 30% from year ago:
As the charts below show, year to date, through the end of May, there have been a total of 1,598 bank or government owned homes sold in the St Louis 5-county core market (the city of St Louis and counties of St Louis, St Charles, Jefferson and Franklin), according to data available from MARIS, the REALTORS® MLS for the area, which is a decline of 31.4% from the same time a year ago when there were 2,100 bank and government owned home sales.
St Louis Distressed Home Sales Selling At Record Percentage of List Price:
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Want be successful buying distressed property? Check out my video on how to buy distressed sales here. Continue reading “Bank and Government Owned Home Sales Down But Selling For Record Percentage of List Price“
The other day I had a client, who was planning on using FHA financing, as me if I thought she would be able to negotiate as good of a deal as if she was obtaining a conventional loan. The concern was that, as an FHA buyer, would she be perceived as a weaker buyer in the seller’s eyes since FHA’s credit and income guidelines are not as stringent as Fannie Mae, and FHA requires a smaller downpayment as well.
This prompted me to do some research to see if I could determine if there was any merit tot he concern that a buyer going FHA may not be able to negotiate as good of a deal as a buyer putting more money down and going conventional. To determine this, I looked at homes sold in St Louis County during the month of May with financing terms reported to the MLS and then looked at the percentage of the list price that FHA buyers paid versus the percentage of list price conventional buyers paid and here are my findings:
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Continue reading “Do Conventional Buyers Get Better Deals Than FHA Buyers?“
The Federal Housing Finance Agency (FHFA) issued a release yesterday stating that while that agency acts as conservator for Fannie Mae and Freddie Mac, no “property of the Agency shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Agency.” The release went on to say that Title 12 United States Code Section 4617(j)(3) “precludes involuntary extinguishment of Fannie Mae or Freddie Mac liens while they are operating in conservatorships and preempts any state law that purports to allow holders of homeownership association (HOA) liens to extinguish a Fannie Mae or Freddie Mac lien, security interest, or other property interest.”
Just in case a homeowners association or others are still considering giving it a try to have their lien take priority over a Fannie Mae or Freddie Mac lien, not that back in December 2014 the FHFA said they have an obligation to protect Fannie Mae and Freddie Mac’s rights and “will aggressively do so by bringing or supporting actions to contest HOA foreclosures that purport to extinguish Enterprise property interests in a manner that contravenes federal law.”
Today, the Federal Housing Finance Agency (FHFA) told Fannie May and Freddie Mac to change their policies to allow foreclosed homeowners the opportunity to buy their home back at the property’s fair-market value, just like any other purchaser can. Currently, if a foreclosed homeowner wanted to buy their home back from Fannie Mae or Freddie Mac they would be required to pay the entire amount owed on their previous mortgage although a non-related purchaser, not buying the home for the benefit of the former homeowner, only has to pay the current fair market value.
“This is a targeted, but important policy change that should help reduce property vacancies and stabilize home values and neighborhoods,” said FHFA Director Melvin L. Watt. “It expands the number of potential buyers of REO properties and is consistent with the Enterprises’ practice of requiring fair-market value for those properties.”
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The Fannie Mae monthly national housing survey for July 2014 shows 67 percent of those surveyed feel now is a good time to buy a home, down from 70 percent that felt that way the month before and down from 74 percent that responded in July 2013 that it was a good time to buy. Forty-three percent of the respondents feel now is a good time to sell a home, an increase from 40 percent the month before and up from July 2013 when 40% felt it was a good time to sell. Other Fannie Mae Housing Survey Highlights:
Continue reading “Survey Shows Two-Thirds of Americans Think Now Is a Good Time to Buy a House“
Consumers continue to gain confidence in the housing market but not enough to return us to a “normal” housing market, according to the June 2014 Fannie Mae National Housing Survey. In the survey consumers are asked, among other things, what their expectations are with regard to home prices and, while the expectation is for home values to increase 2.4% in the next 12 months, this is slightly lower than indicated in the previous few months. When asked about the expectation with regard to mortgage interested rates, 55% of the consumers think interest rates will rise in the next year, this is a 6 point increase from last month.
Doug Duncan, chief economist at Fannie Mae, said “the housing recovery gained its footing” but went on to say “…we do not expect to see ‘normal’ levels of new residential construction…before the end of 2016.”
Highlights from the Fannie Mae National Housing Survey:
Forty-eight percent of Americans surveyed feel home prices will increase in the next twelve months and only 7 percent think home prices will decline, accordion to Fannie Mae’s May 2014 National Housing Survey which was just released. As for the economy, consumers weren’t so optimistic as, according to the report, 57% of those surveyed feel the economy is headed the wrong direction.
Other highlights from the Fannie Mae National Housing Survey for May 2014:
