HousingPulse Distressed Property Index Rises in March

April 26, 2011 (Brian Michael)

Nearly half of the homes on the housing market are now distressed properties according to the latest HousingPulse Distressed Property Index (DPI) report released by Campbell/Inside Mortgage Finance as part of the HousingPulse Tracking Survey. The DPI rose to 48.6 percent in March, the second highest level seen in the past 12 months.

As a result, one of the problems reported by respondents who contribute to the report was that the high proportion of distressed properties on the housing market has lead to difficulties for appraisers to find recently sold non-distressed properties to gauge value.

However, as a positive sign, short sales increased from 17.0 percent in February to a record high 19.6 percent in March, and the proportion of damaged distressed properties in March fell from 14.9 percent in February to 12.0 percent in March. Damaged distressed properties play even more havoc on the ability of appraisers to gauge home values by distorting the value of comparable sales. Smaller amounts of damaged distressed properties should affect appraisals less in the coming months.

Additionally, the Tracking Survey contains the Homebuyer Traffic Index (HTI), which registered a slowdown in owner-occupant activity in March as both current homeowners and first-time home buyers activity fell from 52.5 in February to 52.1 in March. The HTI for investors increased slightly from 57.1 in February to 57.2 in March.

The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey involves more than 3,000 real estate agents nationwide each month and provides up-to-date intelligence on home sales and mortgage usage patterns.

Tags: Campbell/Inside Mortgage Finance, HousingPulse Tracking Survey, Distressed Property Index, Homebuyer Traffic Index, distressed property, appraisers, gauging value, investors

Source:
Campbell/Inside Mortgage Finance
ForeclosureLisings.com (image)

RadarLogic RPX Reports Home Prices Lowest Since March 2003

April 26, 2011 (Chris Moore)

Home prices in February hit their lowest mark since March of 2003 according to RadarLogic’s February 2011 RPX Monthly Housing Market Report. Tracking home prices in 25 metropolitan areas, the RPX Composite price fell to $178.12 per square foot in February, which is 36 percent lower than the all-time high of $278.32 per square foot on June 8, 2007.

RadarLogic utilizes a price per square foot metric for analyzing housing markets because it significantly reduces the influence of property size in overall housing pricing trends, which they feel can skew results.

Although the RPX Composite suggests that home prices may rise in the coming months with the onset of the spring buying season, RadarLogic says the housing market faces serious challenges due to an oversupply of homes on the market. This not only includes current housing inventory, but also foreclosures owned by banks and homes currently in the foreclosure process, which they predict will most likely prolong the period of oversupply.

Overall, prices are expected to remain below 2010 levels although there may be short-term seasonal gains.

“The current data suggest a continuing weak environment driven by too much supply and too few buyers. While we suspect it is harder to get a mortgage than it used to be, we also suspect the real problem is too few people want to, ”according to Michael Feder, Radar Logic’s CEO. “A house is not currently viewed as the safe investment it once was. When this psychology reverses, we will see a recovery. But that may not be for some time.”

The RPX Composite also reports that home sales in the 25 metropolitan areas increased 15.9 percent from January to February, however, year-over-year sales were still down by 1.2 percent.

More distressed properties were sold in February 2011 as 36 percent of all homes sold fell into that category. That compares to 30 percent in February 2010. The percentage of homes sold that were distressed properties were the highest amount in two years.

Tags: RadarLogic, RPX Composite, Monthly Housing Market Report, metropolitan areas, housing market, housing prices, home prices, oversupply, mortgage, home sales, distressed properties

Source:
RadarLogic

Low Cost Energy Improvement Loans Announced by HUD

April 25, 2011 (Shirley Allen)

The Department of Housing and Urban Development (HUD) has teamed up with eighteen national, regional and local lenders to launch a new two year pilot program to provide low cost loans to homeowners for make energy-saving improvements to their preperties in certain parts of the country.

The new “PowerSaver” loans will be backed by the Federal Housing Administration (FHA) and provide homeowners with up to $25,000 to make energy-efficient improvements ranging from installation of insulation, duct sealing, replacement doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.

“We believe the market is right for a low-cost financing option for families who want energy-saving technologies in their home,” said HUD Secretary Shaun Donovan. “PowerSaver hits on all cylinders by helping credit-worthy homeowners finance these upgrades, cut their energy bills and boost the local job market in the process. While FHA and these lenders are jumpstarting this pilot, we hope its success will lead to a growing private sector interest in making these types of loans.”

The program is designed to assist approximately 30,000 homeowners, with the FHA insuring up to 90 percent of the loan amount. Borrowers must have good credit, manageable debt and at least some equity in their homes (maximum 100 percent loan-to-value).

HUD projects that more than 3,000 jobs will be created through the program with an even greater impact if the market demand for the loan program increases over time.

HUD developed PowerSaver as part of the Recovery Through Retrofit initiative launched in May 2009 by Vice President Biden’s Middle Class Task Force to develop federal actions that would expand green job opportunities in the United States and boost energy savings by improving home energy efficiency. The announcement is part of an interagency effort including 11 departments and agencies and six White House offices.

The eighteen lenders approved for PowerSaver loans are:

Admirals Bank
AFC First Financial Corporation
Bank of Colorado
City of Boise, Idaho
Energy Finance Solutions
Enterprise Cascadia
HomeStreet Bank
Neighbor's Financial Corporation
Paramount Equity Mortgage, Inc.
Quicken Loans
SOFCU Community Credit Union
Stonegate Mortgage Corporation
Sun West Mortgage Company, Inc.
The Bank at Broadmoor
University of Virginia Community Credit Union, Inc.
Viewtech Financial Services, Inc.
WinTrust Mortgage
W. J. Bradley Mortgage Capital Corporation

Tags: HUD, FHA, PowerSaver, energy efficient, low cost loans, energy-saving improvements, approved lenders

Source:
HUD

New Single Family Home Sales Jump in March

April 25, 2011 (Brian Michael)

Sales of new single family residential homes jumped in March according to the latest report released jointly by the Census Bureau and the Department of Housing and Urban Development (HUD). Data from the report shows that new single family homes sold at a seasonally adjusted rate of 300,000, which is an increase of 11.1 percent from February’s revised total of 270,000.

However, sales remain far below March of 2010 when an estimated 384,000 new single family homes were sold.

Home builders have been suffering record low new home sales as the price gap between existing homes, pressured by the flow of distressed properties hitting the market, and new homes has widened, weakening demand for new homes.

Unfortunately, home prices continued to slump as the median sales price of a new home sold in March was $213,000, while the average sales price was $246,000. In February the median sales prices was slightly lower at $207,700, however, the average sales price was higher at $256,600. In March of 2010, the median price was $224,800 and the average price was $262,900.

The largest gains in sales were seen in the Northeast where 30,000 sales were recorded in March compared to 18,000 sales in February, a 67 percent gain in sales. However, the low sales in February are attributed to the severe winter weather that the region experienced during the month.

All four regions experienced sales increases from February to March with the exception of the South, which had a slight decrease from 163,000 new home sales in February to 162,000 in March.

New home inventory continued to be at record lows not seen in over 40 years, as only a seasonally adjusted estimated 182,000 new homes were for sale at the end of March, virtually unchanged from February and 45,000 less than a year ago. At current sales rates, that represents a 7.3 month supply of new homes.

Tags: single family homes, new homes, HUD, Census Bureau, home builders, median price, average home price, home inventory, distressed properties

Source:
Census Bureau
rerockstar (image)

Housing Starts Increase in March after Dismal February

April 20, 2011 (Brian Michael)

The U.S. Census Bureau and the Department of Housing and Urban Development (HUD) released the New Residential Construction Report for March 2011 showing gains in both housing starts and housing permits following a dismal February report. The jointly released report reveals that privately owned housing starts in March were at a seasonally adjusted rate of 549,000 units, which was an increase of 7.2 percent above the revised February estimate of 512,000 units.

Housing starts are still 13.4 percent lower than March of 2010 which had an adjusted annual rate of 634,000 units.

Both single-family units and buildings with five or more units showed increases for the month with 422,000 starts for single family housing and 117,000 for buildings with five or more units. Compared to February, single family housing starts were 7.7 percent higher from a revised 392,000 starts in the previous month, and buildings with five or more units were 22 percent higher than the 96,000 from the previous month.

Building permits also increased in March as 594,000 were authorized for the month compared to 534,000 in February. The amount of permits authorized is still 13.3 percent less than the same time last year when 685,000 building permits were authorized.

Single-family authorizations increased 5.7 percent to 405,000 compared to February’s figure of 383,000. Permits issued for buildings with five or more units were authorized at a rate of 173,000 for March. Last month that figure was at 121,000.

Building permits are a sign of future building activity and would indicate increased construction activity in future new home construction.

Privately-owned housing completions decreased 14.2 percent in March at a seasonally adjusted rate of 509,000 units compared to February’s 593,000. The number of completions is also far below March of 2010’s rate of 643,000 units.

Single-family homes were completed at a rate of 374,000 units which is 22.2 percent below February’s revised rate of 481,000. The completion rate for buildings with five of more units was at a seasonally adjusted rate of 130,000.

Tags: housing starts, building permits, single family home, construction, buildings with five or more units, housing completions

Sources:
Census Bureau

LPS March “First Look” Report: Delinquencies Decline, Foreclosure Inventory Rising

April 20, 2011 (Shirley Allen)

Lender Processing Service (LPS) released its monthly “First Look” Mortgage Report for March 2011 yesterday, which is derived from its loan-level database of nearly 40 million loans. The month-end data shows that mortgage delinquency rates continue to decline, but foreclosure inventories are rising.

The “First Look” report contains highlights of the company’s forthcoming Mortgage Monitor report which will provide a more in-depth review including an analysis of data supplemented by in-depth charts and graphs that reflect trend and point-in-time observations.

Early highlights of the report include:

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 7.78% compared to 8.80% in February 2011

Month-over-month change in delinquency rate: -11.6% compared to -1.2% in February 2011

Year-over-year change in delinquency rate: -19.4% compared to -18.4% in February 2011

Total U.S foreclosure pre-sale inventory rate: 4.21% compared to 4.15% in February

Month-over-month change in foreclosure presale inventory rate: 1.4% compared to -0.2% in February 2011

Year-over-year change in foreclosure presale inventory rate: 11.0% compared to 7.4% in February 2011

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,111,000 compared to 4,659,000 in February 2011

Number of properties that are 90 or more days delinquent, but not in foreclosure: 21,989,000 compared to 2,165,000 in February 2011

Number of properties in foreclosure pre-sale inventory: (B) 2,222,000 compared to 2,196,000 in February 2011

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,333,000 compared to 6,856,000 in February 2011

States with highest percentage of non-current* loans: FL, NV, MS, NJ, GA (FL, NV, MS, NJ, GA in February 2011)

States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND (MT, WY, AK, SD, ND in February 2011)

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Notes:
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.

Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans

source:
LPS
blogs.msdn.com (image)

Government Loan Activity Pushes Up Mortgage Applications

April 20, 2011 (Chris Moore)

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April15, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis from last week. The MBA attributes the jump in mortgage applications to an increase in applications in government-backed loans as borrowers sought to take advantage of lower FHA loan fees before the April 18th increase.

On an unadjusted basis, the Index increased 5.9 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 2.9 percent.

The seasonally adjusted Purchase Index increased 10.0 percent from one week earlier, driven largely by an increase in government-backed purchase applications. The four week moving average is up 2.5 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index increased 10.9 percent compared with the previous week and was 11.4 percent lower than the same week one year ago.

“Purchase application volume jumped last week largely due to another sharp increase in applications for government loans. Borrowers were likely motivated to apply for loans before the scheduled increase in FHA insurance premiums,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Refinance activity increased somewhat, as rates dropped to their lowest level in a month towards the end of the week.”

The Refinance Index increased 2.7 percent from the previous week. The four week moving average is down 5.7 percent.

The refinance share of mortgage activity decreased to 58.5 percent of total applications from 60.3 last week. This is the lowest refinance share seen since the beginning of May, 2010.

The adjustable-rate mortgage (ARM) share of activity increased to 6.5 percent from 5.9 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.83 percent from 4.98 percent last week, with points increasing to 1.07 from 0.93 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.07 from 4.17 percent last week, with points increasing to 1.02 from 1.22 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate

Sources:
MBA
dailyrosetta (image)

Improvements to Short Sale Program Coming

April 18, 2011 (Brian Michael)

The Treasury Department has announced updates to the policy guidelines for the Home Affordable Foreclosure Alternatives (HAFA) program which has been followed by legislation introduced in Congress by U.S. Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.) to improve the process for approving short sales in the HAFA program.

The new guidelines being implemented by the Treasury Department requires mortgage servicers to send a written confirmation to a borrower acknowledging their request for a short sale or a deed-in-lieu whether the request was initiated by the borrower or the mortgage servicer.

The mortgage servicer then has 10 business days following receipt of the request to include a description of the mortgage servicers evaluation process and a timeline for their decision on whether their request is acceptable or not.

The second part of the guideline is that the mortgage servicer must provide the borrower with a written approval, denial or alternative offer within 45 calendar days of receiving a completed request form and any other required paperwork, and if unable to do so, must provide the borrower with a written notice before the 45th day and updates every 15 days until a decision is made.

Additionally, the Treasury Department will now give mortgage servicers the ability to approve short sales to non-profit organizations for the purpose of renting and reselling the property back to the borrower, previously not allowed under the HAFA program.

Meanwhile, in the House of Representatives, Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.) introduced the bipartisan “Prompt Decision for Qualification for Short Sale Act of 2011,” which similarly calls for a 45 day deadline for lenders to respond to short sale requests.

The legislation is strongly supported by the National Association of Realtors (NAR).

“The current short sale process can be time-consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a home owner from foreclosure,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I.

According to NAR’s data, about 13 percent of recent home sales nationwide have been short sales. The latest Treasury Department data through the end of February shows 4,488 homeowners had completed a short sale or deed-in-lieu through HAFA while another 10,177 homeowners have agreements in place with their mortgage servicers to participate in the HAFA program.

The new HAFA guidelines announced by the Treasury Department take effect on June 1, 2001, but mortgage servicers are being encouraged to follow the guidelines now.

Tags: Treasury Department, HAGA, guidelines, NAR, mortgage servicers, short sales, deed-in-lieu

Sources:
National Association of Realtors
DSNews.com
houstonrealestateoberserver (image)

Fannie Mae Opens Homeowner Help Center in Jacksonville Florida

April 18, 2011 (Shirley Allen)

Fannie Mae announced the opening of its eighth help center in Jacksonville, Florida. The new Jacksonville Mortgage Help Center will provide free education and counseling services to struggling homeowners in the Duval County area. The Center was developed in partnership with Wealth Watchers, the Duval County area community and elected officials, and area mortgage servicers.

"Fannie Mae is committed to doing everything we can to make sure homeowners facing hardships know the options available to them and have access to the help they need," said Jeff Hayward, Senior Vice President, National Servicing Organization, Fannie Mae. "We are excited to open another Mortgage Help Center to continue to provide services that empower homeowners to make informed decisions and help families stay rooted in their communities, a key part of our mission to bring stability to our nation's neighborhoods."

The Center will provide services that have been available at the other seven Help Centers including reviewing mortgage loans with families who are behind on their mortgage or may be at-risk of foreclosure, discussing loan modification and other alternatives to foreclosure, processing their documentation and making timely decisions on any pending loan workout efforts. Services are available in both English and Spanish.

The center can also assist you if you’ve been a victim of fraud by fraudulent groups charging fees for modifications and foreclosure related services, and other mortgage related scams.

Free services are offered to those families who have mortgage owned by Fannie Mae. Find out if your home is owned by Fannie Mae by going to www.fanniemae.com/loanlookup or call 1-800-7FANNIE.

If your loan is not owned by Fannie Mae, contact Wealth Watchers at Tel: (904)380-0292 for assistance and advice to avoid foreclosure.

Wealth Watchers is also assisting in the Florida Hardest Hit Help program and will be available statewide starting today to assist homeowners who might qualify for Florida’s program.

The Mortgage Help Center is available by appointment only and customers wishing to schedule a visit should call 866-442-8578.

"Jacksonville is proud to have been chosen as one of only a few cities in the country to have a Help Center like this available to its residents," said Jacksonville Mayor John Peyton. "Many in our community struggle with where to go for help when faced with tough decisions regarding their mortgage. This center will serve as a great resource for information and will provide mortgage assistance to those who need it most."

Tags: Fannie Mae, Wealth Watchers, Mortgage Help Centers, mortgage servicers, mortgage modifications, repayment plans, mortgage loans, foreclosure, fraud

Source:
Fannie Mae
expandinjax.com (image)

Distressed Properties Make Up 57% of Home Sales in California

April 15, 2011 (Shirley Allen)

Distressed property sales made up 57 percent of California’s resale market last month according real estate tracker DataQuick. Of those sales, 39.3 percent were properties that had been foreclosed on during the past year, which was down from 40.1 percent in February and down from 40.3 percent in March.

The Golden State did have some good news though, as an estimated 36,417 new and resale houses and condos were sold in March which was up 33.3 percent from February, but down 2.4 percent from a year ago.

The median price paid for a home in March was $249,000, which was up 2.0 percent from February when the median price was $244,000. The median price was 2.4 percent lower than the $255,000 observed in March the previous year.

Short sales dropped slightly, making up an estimated 17.6 percent of resale’s last month, which was slightly lower than the 18.8 percent observed in February. Short sales a year ago were also the same as in February.

Meanwhile, in Southern California, home sales continued to show lackluster results with a total of 19,412 new and resale houses and condos sold in the Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange county areas in March. That was up 35.1 percent from February but down 5.2 percent from a year ago.

Sales of newly built homes in the Southland hit a record low with 1,144 sales recorded. DataQuick noted that was the lowest March total since they started recording statistics back in 1988. By comparison, during the housing peak in 2006, 7,205 new home sales were recorded.

“As an indicator of upcoming trends, the month of March is actually pretty reliable. We got off to a slow start with sales this year and it doesn’t look like that will change anytime soon. Two of the likely game changers in the short run would be a surge in job creation or another round of price corrections,” said John Walsh, DataQuick president. “The foreclosure issue is going to be with us for a good while. But mortgage availability, or rather the lack thereof, is key. If a well-crafted home loan program comes down the pike, it’s going to make some lending institution the dominant player, at least for a while.”

Foreclosure resale’s made up 36.4 percent of the market in March, down from 37 percent in February. Investors and second home purchasers bought 26 percent of the homes sold in March, down slight from February’s 26.4 percent.

DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Tags: DataQuick, California, home sales, new and resale, houses and condos, distressed property sales, foreclosures, median sale price

Sources:
DataQuick
DataQuick
kenflay.co (image)

Foreclosure Activity Decreased in 1Q But Shadow Inventory Looms

April 15, 2011 (Brian Michael)

Foreclosure filings decreased by 15 percent in the first quarter of 2011, but the looming shadow inventory and the probability of increased foreclosure activity in the future as lenders and servicers begin to work their way through the backlog of foreclosures that have been delayed by the “robo-signing” controversy, threaten an already weak housing market according a report released by RealtyTrac.

In its U.S. Foreclosure Market Report™ for the first quarter of 2011, RealtyTrac reports foreclosure filings, default notices, scheduled auctions, and bank repossessions, were reported on 681,153 U. S. properties. The report shows one in every 191 housing units received a foreclosure filing during the quarter which was down 15 percent from the previous quarter and down 27 percent from the first quarter of 2010

“The nation’s housing market continued to languish in the first quarter, even as foreclosure activity fell to a three-year low,” said James J. Saccacio, chief executive officer of RealtyTrac. “Weak demand, declining home prices and the lack of credit availability are weighing heavily on the market, which is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork.”

Nevada continued to have the nation’s highest foreclosure rate with one in every 35 housing units receiving a foreclosure filing. In March, the state’s foreclosure activity increased 35 percent from February after two straight months of declines.

Arizona had the second highest foreclosure filings with one in every 60 housing units receiving a foreclosure filing. California was third, with one in 80 housing units receiving a foreclosure filing. First quarter bank repossessions in California increased 17 percent from the previous quarter and default notices in March were 28 percent higher than February.

Rounding out the top five were Utah with one in 98 housing units receiving a foreclosure filing and Idaho, where one in every 106 housing units received a foreclosure filing.

Based on activity totals, California had the most foreclosure filings for the quarter with 168,543 filings, which accounted for nearly 25 percent of all foreclosure activity in the United States.

Florida was second with 58,322 housing units receiving a foreclosure filing, followed by Arizona with 46,047 filings, Georgia with 37,509 filings, and Michigan with 37,506 foreclosure filings.

The reported noted that generally states with judicial foreclosure laws accounted for the largest quarterly and annual decreases of foreclosure filings in the quarter citing processing delays associated with the judicial foreclosure process.

States that use the judicial foreclosure process like Florida and Massachusetts saw foreclosure activity decline by 47 and 46 percent respectively.

For metropolitan areas, Las Vegas continued to have the highest foreclosure rate in the country with one in every 31 housing units receiving a foreclosure filing. Las Vegas was followed by Modesto (one in every 46 housing units), Stockton (one in every 47 housing units, Phoenix (one in every 48 housing units), and Vallejo (one in every 48 housing units).

California cities dominated the top 20 list with 11 cities on the list.

You can view the whole report here.

Tags: RealtyTrac, foreclosure filings, foreclosure activity, declining home prices, lack of credit availability, default notices, scheduled auctions, bank repossessions

Sources:
RealtyTrac
coastallivingrealestate.com (image)

Mortgage Interest Rates Continue to Creep Up

April 14, 2011 (Shirley Allen)

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows mortgage rates slowly increasing for the fourth consecutive week, yet remaining below 5 percent moving into the traditional home buying season. Mortgage interest rates have remained below 5 percent for the last eight weeks.

• 30-year fixed-rate mortgage (FRM) averaged 4.91 percent with an average 0.6 point for the week ending April 14, 2011, up from last week when it averaged 4.87 percent. Last year at this time, the 30-year FRM averaged 5.07 percent.

• 15-year FRM this week averaged 4.13 percent with an average 0.7 point, up from last week when it averaged 4.10 percent. A year ago at this time, the 15-year FRM averaged 4.40 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.78 percent this week, with an average 0.6 point, up from last week when it averaged 3.72 percent. A year ago, the 5-year ARM averaged 4.08 percent.

• year Treasury-indexed ARM averaged 3.25 percent this week with an average 0.6 point, up from last week when it averaged 3.22 percent. At this time last year, the 1-year ARM averaged 4.13 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, "Mortgage rates edged up following a light week of economic data releases. Although rates on 30-year fixed mortgages have risen four weeks in a row, they have remained below 5 percent for eight straight weeks now, helping to maintain affordability in the housing market. Meanwhile, consumer purchases of retail goods rose for the ninth consecutive month in March, suggesting families have an increasing capacity to spend, which bodes well for the economic recovery."

And…

"Reinforcing this notion, the Federal Reserve reported in its April 13th regional economic review that consumer spending picked up modestly in February and March across most Districts. In addition, it noted that economic activity generally continued to improve and that reports focusing on the near-term outlook were most often upbeat."

30-Year Fixed Rate Mortgages	US	NE	SE	NC	SW	W
Average	4.91	4.94	4.88	4.96	4.95	4.84
Fees & Points	0.6	0.6	0.7	0.5	0.6	0.8

15-Year Fixed Rate Mortgages	US	NE	SE	NC	SW	W
Average	4.13	4.17	4.14	4.13	4.21	4.04
Fees & Points	0.7	0.7	0.8	0.5	0.6	0.8

5/1-Year Adjustable Rate Mortgages	US	NE	SE	NC	SW	W
Average	3.78	3.85	3.73	3.95	3.72	3.66
Fees & Points	0.6	0.6	0.6	0.3	0.5	0.8
Margin	2.74	2.76	2.75	2.71	2.76	2.73

1-Year Adjustable Rate Mortgages	US	NE	SE	NC	SW	W
Average	3.25	3.42	3.05	3.63	3.19	3.00
Fees & Points	0.6	0.6	0.7	0.3	0.9	0.6
Margin	2.76	2.79	2.75	2.71	2.77	2.75

The National Mortgage Rate Snapshot	One Year Ago				One Week Ago
	30-YR	15-YR	5/1-YR	1-YR ARM	30-YR	15-YR	5/1-YR	1-YR ARM
Average	5.07	4.40	4.08	4.13	4.87	4.10	3.72	3.22
Fees & Points	0.6	0.7	0.6	0.5	0.7	0.7	0.6	0.7
Margin	N/A	N/A	2.74	2.74	N/A	N/A	2.74	2.76

Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates

Source:
Freddie Mac

Fannie Mae Announces Opening of Help Center in Tampa

April 14, 2011 (Shirley Allen)

Fannie Mae announced the opening of its seventh help center in Tampa, Florida. The new Tampa Mortgage Help Center will provide free education and counseling services to struggling homeowners in the greater Tampa Bay area. The Center was developed in partnership with the Tampa Bay Community Development Corporation, the Greater Tampa Bay area community and elected officials.

"Fannie Mae is committed to doing everything we can to make sure homeowners facing hardships know the options available to them and have access to the help they need," said Jeff Hayward, Senior Vice President, National Servicing Organization, Fannie Mae. "We are excited to open another Mortgage Help Center to continue to provide services that empower homeowners to make informed decisions and help families stay rooted in their communities, a key part of our mission to bring stability to our nation's neighborhoods."

The Center will provide services that have been available at the other six Help Centers including reviewing mortgage loans with families who are behind on their mortgage or may be at-risk of foreclosure, discussing loan modification and other alternatives to foreclosure, processing their documentation and making timely decisions on any pending loan workout efforts. Services are available in both English and Spanish.

The center can also assist you if you’ve been a victim of fraud by fraudulent groups charging fees for modifications and foreclosure related services, and other mortgage related scams.

Free services are offered to those families who have mortgage owned by Fannie Mae. Find out if your home is owned by Fannie Mae by going to www.fanniemae.com/loanlookup or call 1-800-7FANNIE.

If your loan is not owned by Fannie Mae, contact the Tampa Bay Community Deveolpment Corporation at Tel: (727) 446-6222 for assistance and advice to avoid foreclosure.

The Tampa Bay Community Deveolpment Corporation is also holding Homeownersip Workshops on April 16, 20, and 27th. Call for details.

The Mortgage Help Center is available by appointment only and customers wishing to schedule a visit should call 866-442-8554.

"Any additional resources that are brought to the region to help keep families in their homes are a benefit to the whole community," said Tampa Mayor Bob Buckhorn. "We are happy to join in today's announcement for the center's opening and encourage more efforts like this one that help bridge the gap in these difficult economic times."

Tags: Fannie Mae, Tampa Bay Community Development Corporation, Mortgage Help Centers, mortgage servicers, mortgage modifications, repayment plans, mortgage loans, foreclosure, fraud

Source:
Fannie Mae
AP (Image)

Fed Beige Book: Continued Economic Improvement, Housing Dragging

April 14, 2011 (Chris Moore)

The Federal Reserve released the latest edition of its Beige Book which sounded pretty similar to the last report released six weeks ago. The report shows economic activity generally continued to improve while the housing market continued to be a drag on the economy.

Of the Twelve Federal Reserve Districts, most stated they had experienced moderate economic gains, with Kansas City describing their economic gains as solid, with employment showing steady improvement with increased hiring.

Real estate markets for single family homes were little changed from previous low levels and continuing to show weakness across all districts. Market activity was still declining in the St. Louis and Minneapolis Districts, while activity in the New York, Cleveland, Kansas City, Dallas, and San Francisco Districts remained weak. Atlanta characterized the market as mixed, with Florida brokers providing most of the signs of improvement.

The multifamily markets strengthened in several Districts, including Chicago, Dallas, Minneapolis, and San Francisco, both in terms of leasing and construction activity.

The report noted pockets of improvement as Philadelphia reported that agents were seeing a pickup in inquiries, showings, and traffic, although there was little increase in sales or construction. Boston noted higher activity in just the last few weeks, due in part to improved weather, and Richmond said that the market for lower-priced homes improved. Both Philadelphia and Atlanta noted that brokers expected the market to improve, and builders in the Cleveland District were more optimistic than in the past several months.

You can read the full report here.

Tags: Federal Reserve, Beige Book, housing market, moderate economic gains, increased hiring, real estate markets, single family homes, multifamily market, construction acitivity

LendingTree Weekly Mortgage Rate Pulse: Mortgage Rates on the Rise

April 13, 2011 (Shirley Allen)

According to the data collected on April 12, 2010, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 5.11 percent (5.31% APR) for 30-year fixed mortgages, which is up from 5.06 percent reported in the previous survey, 4.28 percent (4.59% APR) for 15-year fixed mortgages, which is up from 4.23 percent reported in the previous survey, and 3.76 percent (3.88% APR) for 5/1 adjustable rate mortgages (ARM), which was also up from 3.70 percent reported in the previous survey.

The lowest mortgage rates offered on the same day by lenders on the LendingTree network was 4.75 percent (4.89% APR) for a 30-year fixed mortgage, which is the same as the previous survey, 3.88 percent (3.12% APR) for a 15-year fixed mortgage, which is up from 3.75 percent in their the previous survey, and 3.125 percent (3.25% APR) for a 5/1 ARM, which is the same as the previous survey.

"A number of factors, including demand for US debt, are putting continued pressure on rates to fall," said Cameron Findlay, LendingTree Chief Economist. "But mortgage rates have reached the bottom rung. Rates today are surprisingly low – just 16 percent higher than their all-time low despite a 50 percent rise in 10-year Treasuries during the same time frame. This shows us that the spread compression benefit is over, and rates will have a higher propensity to rise in the event of debt market sell offs."

The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.

See how your state compares below by comparing mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders on the LendingTree network, average loan-to-value ratio and percentage of consumers with negative equity:

STATE-BY-STATE MORTGAGE DATA 4/12/11 *Updated Quarterly
STATE	LOWEST MORTGAGE RATE	LOAN-TO-VALUE RATIO*	% WITH NEGATIVE EQUITY*
US Average	4.75% (4.89% APR)	70.2%	35.0%
Alabama	4.75% (4.95% APR)	67.0%	28.9%
Alaska	4.75% (4.95% APR)	66.3%	17.3%
Arizona	4.75% (4.89% APR)	94.6%	39.4%
Arkansas	4.75% (4.87% APR)	72.6%	43.9%
California	4.75% (4.89% APR)	70.6%	34.8%
Colorado	4.75% (4.89% APR)	71.9%	22.2%
Connecticut	4.75% (4.88% APR)	59.5%	43.3%
Delaware	4.75% (4.84% APR)	67.6%	50.3%
District of Columbia	4.75% (4.99% APR)	58.3%	25.5%
Florida	4.63% (4.72% APR)	90.8%	41.1%
Georgia	4.75% (4.90% APR)	80.9%	25.8%
Hawaii	4.88% (5.00% APR)	54.2%	25.4%
Idaho	4.75% (4.89% APR)	73.4%	29.8%
Illinois	4.75% (4.95% APR)	72.4%	31.7%
Indiana	4.63% (4.81% APR)	69.4%	28.5%
Iowa	4.75% (4.95% APR)	66.7%	42.9%
Kansas	4.75% (4.95% APR)	70.5%	31.8%
Kentucky	4.75% (4.90% APR)	67.6%	53.1%
Louisiana	4.75% (4.95% APR)	78.5%	75.5%
Maine	4.75% (4.95% APR)	58.6%	30.1%
Maryland	4.75% (4.88% APR)	70.4%	25.6%
Massachusetts	4.75% (4.87% APR)	60.7%	46.0%
Michigan	4.75% (4.88% APR)	84.3%	32.2%
Minnesota	4.75% (4.88% APR)	65.6%	22.2%
Mississippi	4.75% (4.95% APR)	78.4%	30.1%
Missouri	4.75% (4.89% APR)	71.6%	31.0%
Montana	4.75% (4.95% APR)	60.2%	33.4%
Nebraska	4.75% (4.95% APR)	72.3%	46.5%
Nevada	4.75% (4.95% APR)	118.0%	55.3%
New Hampshire	4.75% (4.87% APR)	69.8%	25.2%
New Jersey	4.75% (4.88% APR)	62.2%	29.0%
New Mexico	4.75% (4.89% APR)	66.4%	45.8%
New York	4.75% (4.86% APR)	50.1%	42.1%
North Carolina	4.75% (4.89% APR)	71.2%	33.2%
North Dakota	4.75% (4.95% APR)	60.1%	37.7%
Ohio	4.75% (4.87% APR)	75.4%	27.0%
Oklahoma	4.75% (4.87% APR)	71.0%	52.4%
Oregon	4.75% (4.92% APR)	69.6%	19.6%
Pennsylvania	4.63% (4.72% APR)	62.5%	75.7%
Rhode Island	4.75% (4.95% APR)	62.6%	36.6%
South Carolina	4.75% (4.88% APR)	71.0%	29.0%
South Dakota	4.75% (4.87% APR)	N/A	N/A
Tennessee	4.75% (4.90% APR)	71.2%	30.7%
Texas	4.75% (4.95% APR)	68.8%	30.6%
Utah	4.75% (5.00% APR)	73.7%	22.2%
Vermont	4.75% (4.95% APR)	N/A	N/A
Virginia	4.75% (4.89% APR)	71.7%	25.0%
Washington	4.75% (4.89% APR)	67.9%	21.4%
West Virginia	4.75% (4.95% APR)	67.0%	68.0%
Wisconsin	4.75% (4.95% APR)	68.3%	35.6%
Wyoming	4.75% (4.95% APR)	64.2%	23.0%

Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile.

More information is available here:

Tags: lendingtree, mortgage rates, mortgage loans, average home rates, 30 year fixed, 15 year fixed, 5/1 arm, adjustable rate mortgage, fixed mortgage, freddie mac, lenders

Mortgage Applications Continue Slide, Rates Up Slightly

April 13, 2011 (Chris Moore)

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 8, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 6.7 percent on a seasonally adjusted basis from last week.

On an unadjusted basis, the Index decreased 6.3 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 3.3 percent.

The seasonally adjusted Purchase Index decreased 4.7 percent from one week earlier. The four week moving average is up 0.7 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index decreased 4.1 percent compared with the previous week and was 11.4 percent lower than the same week one year ago.

The Refinance Index decreased 7.7 percent from the previous week. The four week moving average is down 5.3 percent.

The refinance share of mortgage activity decreased to 60.3 percent of total applications from 61.2 last week. This is the lowest refinance share seen since the beginning of May, 2010.

The adjustable-rate mortgage (ARM) share of activity decreased to 5.9 percent from 6.1 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.98 percent from 4.93 percent last week, with points increasing to 0.93 from 0.69 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 4.17 from 4.14 percent last week, with points increasing to 1.22 from 1.09 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate

Sources:
Mortgage Bankers Association
developersnippets.com (image)

Extended Military and Federal Workers Home Buyer Assistance Ending

April 13, 2011 (Chris Moore)

An extension that was enacted as part of the Worker, Homeownership and Business Assistance Act of 2009 for Military personnel, members of the Foreign Service, and intelligence community employees who served at least 90 days of extended duty, and their spouses, is set to expire on April 30, 2011.

Eligible employees can claim tax credits of up to $8,000 but must enter into a binding contract by April 30th and must close the purchase by June 30, 2011.

Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period after December 31, 2008, and ending before May 1, 2010.

Requirements of the program are:

- The purchased home must be your primary residence
- The home may not be purchased from a parent, spouse, or child
- The home may not be purchased from an entity in which the seller is a majority owner
- The home may not be acquired by gift or inheritance
- The home sale price may not exceed $800,000
- Buyers may not earn more than $125,000 as single-filers; $225,000 as joint-filers
- Only one spouse must be overseas on official extended duty for the requisite amount of time for either spouse to be eligible for the 2011 extension of time to purchase a principal residence and claim the credit.

More information on the extended Worker, Homeownership and Business Assistance Act of 2009 is available on the IRS website.

Tags: home buyer assistance, Worker, Homeownership and Business Assistance Act of 2009, military members, Foreign Service, intelligence community, extended duty

Sources:
IRS
homebuyertaxcredit.com (image)

Americans Expect Interest Rates to Rise

April 13, 2011 (Brian Michael)

In a recent poll conducted by Rasmussen Reports, fifty–four percent of Americans surveyed expected interest rates to rise over the coming year. Only 5 percent expected interest rates to be lower, while 30 percent believed that interest rates would remain the same.

The survey also found that 22 percent said that they were paying higher interest rates than they were a year ago, while just 15 percent claimed they were paying lower interest rates than they were a year ago. The majority (54%) said they were paying about the same.

Americans reported they generally owe less or the same as they did a year ago. Thirty –seven percent said they owed less than a year ago, while 32 percent they owed about the same.

Rasmussen reports that consumer confidence has been falling since February with just 31 percent of those polled rating their own personal finances as good or excellent, while 22 percent rate their finances as getting better and 46 percent saying their finances are getting worse.

Meanwhile, homeowners continue to show no confidence in a short term recovery in the value of their homes. In their last survey, twenty-one percent of adults surveyed who owned their homes believed that the value of their homes would go up in the next year, while 25 percent expect their value to go down. Just about half (52%) believe that their home values will remain the same.

There was some long term optimism however, as 51 percent of the homeowners believed that the value of their homes would be higher five years from now. Twenty-six percent believed their home values would be about the same and 15 percent felt that their homes values will go down.

Tags: Rasmussen Reports, interest rates, consumer confidence, personal finances, short term recovery, long term recovery, homeowners

Sources:
Rasmussen Reports

HUD Grants Available for Fixing Home Health Hazards

April 12, 2011 (Shirley Allen)

The Department of Housing and Urban Development (HUD) has announced that they are making grants available for lower income homes to help eliminate lead-based paint and other related health hazards. Applications are being accepted for the three programs until June 9, 2011 and are designed to protect young children and other vulnerable populations like asthma sufferers.

"These grants are critical for States, counties and cities who are on the front lines of protecting our children from lead hazards and other residential hazards," said Jon Gant, Director of the Office of Healthy Homes and Lead Hazard Control. "While we have made remarkable progress toward eliminating lead poisoning in children nationwide, now is the time to focus on reaching the finish line. We look forward to communities applying for these grants so that they can help make older housing safer and healthier for children."

HUD is making grants available through the following three programs:

- Lead-Based Paint Hazard Control (LHC) and the Lead Hazard Reduction (LHRD) grant programs - These grants will identify and control lead-based paint hazards in eligible privately owned housing for rental or owner-occupants. Application due date: Thursday, June 9, 2011

- Healthy Homes Production - This grant program is modeled after the previously successful Healthy Homes Demonstration and Lead Hazard Control grant programs, and will enable public and private grantees to address multiple housing-related hazards at the same time. Application due date: Thursday, June 9, 2011.

- Asthma Interventions in Public and Assisted Multifamily Housing Grant - These grants will develop, implement, and evaluate multifaceted programs for the control of asthma among residents of federally assisted multifamily housing. HUD is targeting asthma because it is a common illness that especially affects disadvantaged populations, and because multi-pronged interventions, such as reducing exposure to environmental triggers, can help control the disease. Application due date: Thursday, June 9, 2011.

All applications must be submitted electronically through www.grants.gov. HUD also recommends signing up for Grants.gov’s notification service to receive periodic updates and changes to this grant offering.

Tags: HUD, lead-based paint, health hazards, asthma sufferers, lead poisoning, grants, lower income homes, vulnerable populations, hazards

Sources:
HUD
charlesandhudson.com (image)

Fannie Mae Announces Home Buyer Assistance Program

April 12, 2011 (Brian Michael)

Fannie Mae has announced a new buyer assistance program that provides prospective home buyers with closing cost assistance of up to 3.5 percent on any property bought through Fannie Mae’s HomePath Properties.

The offer runs from April 11, 2011 through June 30, 2011. In order to receive the incentive, the sale must close on or before the end of the program. Additionally, buyers must reside in the home as their primary residence, so investors are not allowed to participate in the program.

"Attracting qualified buyers to the market and reducing the inventory of vacant homes remains essential to stabilizing neighborhoods and helping the market recover," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home so this is a great time for Fannie Mae to offer some assistance."

You can search for properties online at HomePath.com. Other assistance may be available on Fannie Mae properties including special Homepath Mortgage and HomePath Renovation Mortgage financing, which offers buyers an opportunity to purchase a home through HomePath Properties with as little as 3 percent down.

Most listings on HomePath Properties include such comprehensive information as detailed property descriptions, photographs, community and school information and so much more!

Tags: Fannie Mae, HomePath Properties, buyer assistance program, closing cost, primary residence, qualified buyers, stabilizing neighborhoods, interest rates, mortgage

Sources:
Fannie Mae

Zillow: Home Depreciation Slows in February

April 12, 2011 (Shirley Allen)

Zillow.com states in a recently released report that national home values continued to decline in February of 2011, but at a slower pace. Nationwide, monthly home depreciation was -1.1 percent in February, down from -1.3 percent in January. However, year over year depreciation increased to -8.2 percent in February compared to – 7.4 percent in January.

Nationally, the median home value was $170,097 in February which is down 29.1 percent from the market peak in June 2006.

The metropolitan area that suffered the worse month over month decline in home value was Medford Oregon (-3.1%), while the metropolitan area that suffered the worse year over year home value decline was Mobile, Alabama, which saw home values decline 20.0 percent.

Zillow’s Home Value Index Report also showed that 130 out of 132 to metropolitan regions experienced monthly declines in home values with two markets, Fort Myers, Florida, and Fayetteville, North Carolina, seeing monthly increases.

In year over year comparisons, Zillow says that 127 metro regions experienced declines in home values, two metro regions saw annualized increases (Honolulu and Utica), and three metro regions were flat from year ago levels.

The report states that foreclosure liquidations increased to 0.095 percent, up from 0.093 percent in January, which they attributed to increased foreclosure activity following the slowdown caused by the “robo-signing” controversy. Zillow believes that as a result, they expect foreclosure liquidations to increase in the future.

Zillow also predicts that national home values will bottom out in the fourth quarter of 2011 or the first quarter of 2012 as the declining rate of depreciation that they predicted in December is beginning to materialize.

Read the whole report at zillow.com.

Tags: zillow, home value index report, median home value, home depreciation, metropolitan regions, foreclosure liquidations, robo-signing

Sources:
Zillow.com

Western U.S. Leads Nation in Price Declines

April 8, 2011 (Chris Moore)

Clear Capital released its monthly Home Data Index (HDI) Market Report which shows the Western region of the United States leading the nation in price declines (-4.3%), while in the rest of the U.S., prices remain flat. Prices through March in the Western U.S. have reached lows not seen since 2001 with the report calling the declines as having reached “double dip territory.”

The HDI reports that overall, quarter over quarter home prices fell by 1.3 percent.

“The latest data through March supports our view that many markets are continuing to see relief from the significant price declines we observed through January," said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “While some markets are already in double dip territory, specifically in the West, widespread fear of a collective fall in market prices is overstated.”

Villacorta adds that it is Clear Capitals belief that the disparity in prices between the West and the other regions is based on the amount of REO saturation. Out of all the regions, only the Western region showed gains in its REO saturation over the previous quarter.

Quarter over quarter, prices in the West declined by 4.3 percent. Prices in the Midwest and the South remained unchanged for the quarter, and prices in the Northeast declined by 0.5 percent.

Compared to six months ago, prices in the West have declined 7.3 percent, while prices in the Midwest have fallen 7.8 percent, prices in the South have fallen 4.4 percent, and in the Northeast prices have fallen 3.6 percent.

Year over year, prices in the West have fallen 5.2 percent, increased 0.9 percent in the Midwest, fallen 1.1 percent in the South, and have increased 1.3 percent in the Northeast.

The best performing Metropolitan Statistical Areas (MSAs) were the Bridgeport/Stamford/Norwalk Connecticut area which saw a gain of 9.4 percent for the most recent quarter, followed by the New York/Long Island/No. New Jersey area which increased 4.6 percent for the quarter, and the Dallas/Ft. Worth/Arlington Texas area, which saw price gains of 4.5 percent for the quarter.

Markets in the South and Northeast regions dominated this month’s quarter-over-quarter price gains, taking up 12 of the 15 spots on the list. The only markets outside these regions to make the list were the Ohio markets of Cleveland, Cincinnati, and Columbus.

The lowest performing MSAs were the Detroit/Warren/Livonia Michigan area where prices declined by 18.9 percent for the quarter, followed by the Milwaukee/Waukesha/West Allis Wisconsin area, where prices declined by 13.3 percent, and the Raleigh/Cary North Carolina area, which saw prices decline by 9.8 percent.

Home prices in the West are at their lowest since 2001, becoming the first region to double dip. The price declines reflect the extent of distressed activity in the region as 40.8 percent of all sales are distressed properties.

Almost all areas have seen the price gains they experienced in the first half of 2010 caused by an uptick in housing activity due to the government home buying assistance programs wiped out.

The Clear Capital HDI Market Report has displayed consistent market trends as other leading indices (peak, trough, secondary trough and tax credit run-ups). Despite these consistencies, a critical difference is that HDI’s methodology enables more timely and granular reporting.

Tags: Clear Capital, home data index, HDI, price declines, double dip territory, best performing markets, lowest performing markets

Sources:
Clear Capital

Loan Modifications Decline in February According to HOPE NOW

April 8, 2011 (Shirley Allen)

HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its February 2011 loan modification report, which shows approximately 61,000 proprietary loan modifications and 26,147 Home Affordable Modification Program (HAMP) modifications were completed, for an estimated total of 87,000 completed modifications. The total completed modifications were down from 100,000 in January of 2011.

Approximately 49,000 of the proprietary modifications included reduced monthly principal and interest payments, with 36,000 of those by being reduced by more than 10 percent.

Fixed rate loan modifications of 5 years or more dominated the choices available to borrowers with 81 percent (49,000) of all proprietary modifications completed choosing the fixed rate mortgage loan option.

Additionally, the report said there were 180,000 foreclosure starts for the month of February, down from the 204,000 reported in January 2011. The number of foreclosure sales for the month was approximately 73,000, which was virtually unchanged from the month before.

Faith Schwartz, Executive Director, stated, “Despite the numerous issues surrounding the loan servicing industry which have caused some delays in process, servicers and non-profit housing counselors continue to make progress in reaching at-risk homeowners, counseling at-risk homeowners, and offering alternatives to families facing foreclosure.”

The report also revealed that 60+ days delinquencies for the month were 2.78 million, down from 2.95 million in January 2011.

“While we have seen a decline in overall modifications, we are pleased to see the serious delinquencies once again declined in the month of February, consistent with a trend we have seen in earlier months,” added Schwartz.

Tags: HOPE NOW, mortgage servicers, investors, loan modifications, HAMP, principal and interest payments, foreclosure starts, foreclosure sales, at-risk homeowners

Sources:
HOPE NOW

CoreLogic HPI: Seven Straight Months of Price Declines

April 8, 2011 (Brian Michael)

CoreLogic released its February Home Price Index (HPI) which shows U.S. home prices declining for the seventh month in a row in year over year comparisons. Prices in February 2011 were 6.7 percent lower than February 2010 with most of the pricing declines coming as a result of distressed transactions.

The HPI reports that the year over year price decline for February was only 0.1 percent when excluding distressed transactions. The same pattern was observed in January of 2011 as prices declined 5.5 percent* compared to January 2010, but the price decline was 1.4 percent* when distressed transactions were excluded.

Distressed transactions include short sales and real estate owned (REO) transactions.

According to CoreLogic chief economist Mark Fleming, although overall prices have continued to decline, excluding distressed transactions, home prices are showing signs of stability.

“When you remove distressed properties from the equation, we’re seeing a significantly reduced pace of depreciation and greater stability in many markets. Price declines are increasingly isolated to the distressed segment of the market, mostly in the form of REO sales, as the stock of foreclosures is slowly cleared." he said.

The five states with the highest price appreciation including distressed sales were West Virginia (+5.4 percent), New York (+4.7 percent), North Dakota (+4.1 percent), Maine (+3.6 percent) and Alaska (+1.2 percent).

The five states with the greatest price depreciation including distressed sales were Idaho (-14.6 percent), Arizona (-12.0 percent), Florida (-11.2 percent), Michigan (-11.1 percent) and Illinois (-11.1 percent).

The five states with the highest price appreciation excluding distressed sales were West Virginia (+8.2 percent), New York (+5.7 percent), South Carolina (+5.4 percent), Hawaii (+5.0 percent), and District of Columbia (+4.5 percent).

The five states with the greatest price depreciation excluding distressed sales were Idaho (-9.3 percent), Montana (-8.6 percent), Maine (-6.2 percent), Arizona (-5.4 percent) and Rhode Island (-5.4 percent).

The peak-to-current change in the national HPI (from April 2006 to February 2011) including distressed sales was -34.5 percent compared to -21.7 percent when distressed sales are excluded.

Eighty six of the top 100 Core Based Statistical areas (CBSAs) are showing year-over-year price declines in February, which was an improvement from 88 in January.

*January 2010 data, including distressed sales, was revised from a decline of -5.7 percent to a decline of -5.5 percent.

CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services. You can get a full copy of the Home Price Index here.

Tags: CoreLogic, home price index, HPI, U.S. home prices, distressed properties, distressed sales, depreciation, appreciation, foreclosures, short sales,REO properties

Sources:
CoreLogic

HAMP Servicers to be Graded by Treasury Department

April 6, 2011 (Chris Moore)

Acting Assistant Secretary of the Treasury, Timothy Massad, revealed in a speech given at Harvard University’s John F. Kennedy School of Government, that starting in April the Treasury Department will include a scorecard for each of the largest HAMP servicers in its quarterly compliance report.

Massad said in his speech, that since the inception of the Home Affordable Modification Program (HAMP), the Treasury began publishing a monthly mortgage servicer performance report of servicer specific information on loan modifications and the homeowner experience. In 2010, they expanded the report to include results of compliance reviews, metrics on homeowner experience, performance of HAMP, modifications over time, survey data on homeowners who did not receive permanent modifications, and, most recently, a data file with loan level details on homeowners.

The new scorecard will highlight servicer compliance on a number of key performance metrics, including proper evaluation of homeowners for modifications, staff resources and internal processes dedicated to program implementation and quality control.

Mortgage service companies will now also be rated against their peers.

The assistant secretary also added HAMP was a voluntary program, based on contract, and that they could not regulate servicers, nor fine them. He noted that they have required servicers to take remedial actions to fix inadequacies in their programs based on their contractual rights.

Commenting on the recent vote by the House of Representatives to terminate HAMP, Massad said, “The housing crisis took years to create, and there is no easy or quick way to repair all the damage that it caused. It is going to take hard work, sustained effort, and bipartisan cooperation. Terminating HAMP is certainly not the answer. It would immediately relax the pressure on mortgage companies to offer better assistance to struggling homeowners, creating unnecessary hurdles for those seeking relief. More broadly, it would remove a critical path to recovery for tens of thousands of American families and for our overall economy.”

Ironically, during the speech, Massad made the argument that HAMP only assists homeowners who show that they can meet their obligations under the modified loan, yet according to a report released by the Office of Thrift Supervision, since January 2008, 47 percent of all borrowers who have had their loans modified and had their payments reduced by 10 percent or greater, were delinquent on their new loans.

Tags: Treasury department, Timothy Massad, HAMP, mortgage servicers, loan modifications, scorecard, servicer compliance, permanent modifications, American families

Source:
Treasury Department
Ashley Elementary School (Image)

If You Can’t Sell Them, Rent Them!

April 6, 2011 (Brian Michael)

Homebuilder Beazer Homes has started a new division to buy homes that were built after 2004 that are primarily foreclosures and short sales, and plans to rent them out in housing markets where many people are having trouble qualifying for home loans.

Starting in the Phoenix area, the builder hopes to have more than 100 homes in its portfolio by the end of fiscal 2011.

Beazer and other new home builders have been suffering declining sales as pre-owned home prices continue to decline due to the large amount of foreclosures hitting the market, making it difficult for new homebuilders to compete.

Beazer reports that orders for new homes fell 24 percent in the quarter ending in December 2010. The builder said that it may expand the plan to Nevada and California and that they expect to sell the homes when the housing market recovers.

The U.S. Census Bureau and the Department of Housing and Urban Development (HUD) reported in March, that sales of new single family homes dropped 16.9 percent in February compared to January.

Tags: Beazer, new homes, foreclosures, short sales, rentals, declining sales, homebuilders, housing market


Source:
Reuters

OTS: Credit Quality Improves For Fourth Consecutive Quarter

April 5, 2011 (Brian Michael)

Credit quality of first lien mortgages improved in the fourth quarter of 2010, as the percentage of seriously delinquent mortgages declined for the fourth consecutive quarter, according to the quarterly report released by the Office of Thrift Supervision (OTS). It was the lowest level seen since the second quarter of 2009.

The report covers about 63 percent of all first-lien mortgages in the country, worth $5.7 trillion in outstanding balances.

The OTS report showed that 87.6 percent of the 32.9 million loans in the portfolio were current and performing at the end of the quarter. Although mortgage delinquencies remain at elevated levels, the overall quality of the mortgages in the portfolio improved from the previous quarter.

The OTS also predicts that new and completed foreclosures are expected to increase in upcoming quarters as lenders complete reviews of their foreclosure processes brought on by the “robo-signing” controversy. This has already led to an increase in foreclosure inventories as new foreclosures outpaced completed foreclosures. The report says foreclosure inventory increased 7 percent to 1,290,253 in the fourth quarter representing 3.9 percent of all serviced loans.

Completed foreclosures decreased by nearly 50 percent to 95,067, while newly initiated foreclosures increased by almost 8 percent to 352,318 compared to the previous quarter.

Loan modifications also increased substantially in the fourth quarter. Mortgage servicers initiated more than three times as many home retention actions as completed home forfeiture actions. During the past five quarters, mortgage servicers initiated nearly 2.7 million home retention actions, 473,415 in the fourth quarter alone, compared to 146,132 home forfeiture actions in the same quarter.

Modifications made during the quarter reduced payments by an average of $414 per month with HAMP modifications reducing payments by an average of $587 and private modifications reducing monthly payments by an average of $351.

The report notes that 57 percent of the modifications made since January 2008 in which the mortgage payment was reduced by 10 percent or more were current and performing at the end of the quarter of 2010, which means 47 percent were not.

However, by contrast, only 34 percent of the mortgages in that same time period in which the payment was reduced by less than 10 percent were current and performing, which means 66 percent are not.

Tags: OTC, credit quality, first lien mortgage, mortgage delinquencies, foreclosures, foreclosure inventories, loan modifications, mortgage servicers, HAMP

Sources:
Office of Thrift Supervision

DataQuick: FHA Loans Decline, VA Loans Up

April 5, 2011 (Shirley Allen)

DataQuick reports that the share of borrowers using government insured FHA loans fell to a 27 month low in February to 33.3 percent of all mortgages based on an analysis of 20 large housing markets nationwide. Meanwhile, the number of VA mortgages increased from a year ago to 6.4 percent, compared to 5.5 percent a year earlier.

The report cites the trend is likely due to a combination of factors, including the government’s recent changes to qualifying standards for FHA mortgages and even tighter requirements from lenders for the low down payment loans. Other factors noted in the report pertained to the weak economic climate including weak job growth, concerns over job security, and the number of underwater borrowers who lack the ability to pay off their current mortgage in order to purchase another house.

Regionally, the numbers of borrowers who purchased their homes with an FHA loan varied widely with as little as 10.3 percent of all purchase loans in the Honolulu area obtaining an FHA loan to 43.2 percent of purchase loans in the Orlando region obtaining an FHA loan.

During the current housing cycle, FHA loans peaked at 41.1 percent of all home purchases in November of 2009 and have been dwindling since then. February’s figure was down from 34.2 percent in January and 38.2 percent in February 2010.

The median price for a home bought with an FHA mortgage was $195,000, which was the same as January, but down 2.5 percent from February of 2010, when the median price was $200,000. The median loan amount in February was $187,668, which was up from $186,500 in January but down 4.4 percent in February of 2010.

Percentage of home purchase loans that were FHA:

Metro area*	Feb-07	Feb-08	Feb-09	Feb-10	Feb-11	Peak month since '07**
Baltimore	4.4%	14.2%	42.5%	44.0%	41.2%	50.8%
Chicago	2.4%	5.9%	34.0%	40.9%	35.4%	43.3%
Denver	5.7%	15.7%	40.3%	47.9%	35.9%	53.4%
Honolulu	0.2%	1.4%	9.9%	14.9%	10.3%	19.0%
Las Vegas-Paradise	1.0%	22.3%	45.2%	47.5%	41.8%	55.1%
Los Angeles/Orange	0.2%	2.0%	31.3%	33.1%	29.5%	33.1%
Miami	1.0%	6.6%	39.1%	45.8%	42.0%	47.1%
Nashville	9.0%	20.1%	38.0%	47.1%	39.1%	53.8%
New York	1.3%	4.7%	22.1%	23.0%	22.0%	29.5%
Orlando	0.9%	12.7%	40.5%	45.7%	43.2%	49.9%
Phoenix	2.1%	20.7%	40.4%	41.3%	33.7%	55.3%
Portland	1.3%	8.1%	29.6%	37.3%	32.6%	42.3%
Riverside, CA	0.5%	16.2%	49.1%	47.2%	40.8%	51.1%
Sacramento, CA	0.3%	11.6%	37.1%	45.3%	35.7%	45.3%
San Diego	0.3%	2.8%	28.0%	29.2%	24.4%	31.3%
San Francisco	0.0%	1.1%	22.0%	25.5%	22.2%	26.3%
San Jose, CA	0.0%	0.0%	17.3%	18.9%	16.5%	22.3%
Seattle	0.8%	7.1%	31.0%	34.2%	30.1%	39.9%
Tampa	1.8%	15.6%	37.2%	37.6%	34.6%	45.7%
Washington D.C.	1.1%	10.5%	40.1%	43.3%	37.3%	45.8%

Percentage of home purchase loans that were VA:

Metro area*	Feb-07	Feb-08	Feb-09	Feb-10	Feb-11	Peak month since '07**
Baltimore	1.6%	4.3%	6.5%	9.2%	9.9%	10.7%
Chicago	0.5%	0.9%	1.9%	1.8%	2.8%	3.4%
Denver	1.4%	2.9%	6.0%	5.3%	6.6%	7.3%
Honolulu	5.3%	10.9%	23.1%	15.4%	18.9%	23.1%
Las Vegas-Paradise	1.1%	5.5%	10.3%	9.8%	10.4%	11.4%
Los Angeles/Orange	0.1%	0.4%	2.0%	2.2%	2.4%	2.6%
Miami	0.2%	0.6%	2.3%	2.7%	2.2%	3.8%
Nashville	2.2%	2.1%	4.9%	4.3%	6.0%	6.7%
New York	0.1%	0.4%	0.8%	0.6%	1.1%	2.1%
Orlando	0.7%	2.5%	5.3%	4.9%	4.9%	7.0%
Phoenix	1.2%	3.5%	6.2%	5.9%	6.6%	7.6%
Portland	1.2%	2.0%	4.9%	5.6%	5.5%	9.1%
Riverside, CA	0.3%	3.9%	6.7%	7.6%	8.2%	8.5%
Sacramento, CA	0.3%	2.4%	4.0%	4.3%	4.7%	5.3%
San Diego	0.3%	3.1%	15.0%	11.9%	15.3%	15.3%
San Francisco	0.1%	0.1%	2.1%	1.3%	2.1%	2.1%
San Jose, CA	0.0%	0.1%	1.0%	0.8%	0.9%	1.8%
Seattle	1.4%	3.6%	10.3%	8.6%	10.6%	11.3%
Tampa	1.8%	4.3%	9.9%	9.2%	9.1%	11.1%
Washington D.C.	1.4%	5.6%	12.3%	10.9%	13.8%	13.9%

Tags: DataQuick, FHA mortgage loans, VA mortgage loans, government insured loans, home purchase loans, qualifying standards, low down payment loans, underwater borrowers, weak job growth, job security

*Includes all or at least the core counties in each metro area.
**Peak month could include any calendar month; not just February.
Note: Feb. '11 data are preliminary for Washington D.C., New York and Tampa.

Sources:
DataQuick Information Systems
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