July 5, 2011 (Shirley Allen)
Existing single-family home sales in Phoenix hit the highest level for the month of May in six years as investors purchased homes at near record levels according to real estate information provider DataQuick. But the high level of foreclosure sales continues to keep a lid on home prices.
A total of 9,837 new and resale houses and condos closed escrow in the Maricopa-Pinal counties area in May. Sales were 0.8 percent higher than in April and 4.9 percent higher than May of 2010. It was the highest level of sales since 2007.
Existing single-family detached home sales were at their highest levels since 2005 and sales of existing condos were at their highest level since 2006. New home sales continued to suffer with sales levels at their lowest for a May in 14 years.
Cash buyers were responsible for 42 percent of the purchases in May, which was down from 44.5 percent in April, but up from 34.4 percent a year earlier. The record for cash purchases was in February 2011, when 48 percent of the sales were for cash.
The price that cash buyers are paying continues to decline as the median price paid by a cash buyer in May was $90,000, which is down from $91,900 in April and down from $112,9500 in May 2010.
Absentee buyers, usually investors and vacation home buyers, accounted for 45.3 percent of all homes sold in May and they paid a median average price of $101,000 during the month.
The overall median price paid for new and resale homes and condos in May was $120,000, which was the same as in April, but is down 13.7 percent from May of last year.
The current median price is at its lowest level since1998 and is 54.6 percent below the peak median price of $264,100 in June 2006.
Distressed sales represented 64 percent of the resale market in May as foreclosures accounted for 50.8 percent of the distressed sales and short sales accounted for 13.7 percent of the distressed sales.
Foreclosures fell 8.5 percent from April to May with lenders foreclosing on 4,832 single-family homes and condos last month. Foreclosures are up 5.6 percent compared to May of 2010.
Tags: DataQuick, existing home sales, Phoenix, distressed properties, resale homes, condos, cash buyers, investors, median price
Source:
DataQuick
Friday, July 8, 2011
Wells Fargo Proprietary Loan Mods Outpace HAMP Mods 5 to 1
July 5, 2011 (Brian Michael)
Wells Fargo & Co. announced that since the beginning of 2009, they have initiated 687,047 active trial or completed loan modifications of which 585,213 were done through the company’s own loan modification programs and 101,834 that have been done through the federal government’s Home Affordable Modification Program (HAMP), a ratio of over 5 to 1.
Wells Fargo also reports that during that same time period over 2.7 million consumers have taken advantage of the historically low interest rates and reduced their mortgage payments through refinancing.
As of the first quarter of 2011, about 93 percent of Wells Fargo’s home loan customers have remained current on their mortgage payments, and in the last 12 months, less than 2 percent of the loans secured by owner-occupied homes serviced by Wells Fargo have resulted in foreclosure.
“Avoiding foreclosure is a top priority for us and when customers work with us, we can help 7 of every 10 to stay out of foreclosure,” said Teri Schrettenbrunner, senior vice president, Wells Fargo Home Mortgage. “We continue to introduce means to make the home preservation process easier for customers to manage. That includes improving upon and expanding the primary contact model we introduced in June 2010 so that a customer knows exactly who they are working with on a modification from beginning to end. We also continue to aggressively reach out to customers 60 or more days behind on their home loans via mail and telephone in an effort to engage them.”
Wells Fargo says that nearly half of the 58,000 customers that have attended one of the bank’s 31 Home Preservation Workshops or sought help at one of the 27 Home Preservation Centers around the country have received a decision on the spot or shortly after their visit.
The next Home Preservation Workshop is in Bellevue, Washington, on July 7 and 8, 2011. The event is being held at the Hyatt Regency Bellevue and will be open from 9:00 a.m. until 7:00 p.m. each day. The last day to register for this event is today.
Get more information here.
Tags: Wells Fargo, loan modifications, HAMP, low interest rates, reduced mortgage payments, refinancing, foreclosure, Home Preservation Workshops
Source:
Wells Fargo
Wells Fargo & Co. announced that since the beginning of 2009, they have initiated 687,047 active trial or completed loan modifications of which 585,213 were done through the company’s own loan modification programs and 101,834 that have been done through the federal government’s Home Affordable Modification Program (HAMP), a ratio of over 5 to 1.
Wells Fargo also reports that during that same time period over 2.7 million consumers have taken advantage of the historically low interest rates and reduced their mortgage payments through refinancing.
As of the first quarter of 2011, about 93 percent of Wells Fargo’s home loan customers have remained current on their mortgage payments, and in the last 12 months, less than 2 percent of the loans secured by owner-occupied homes serviced by Wells Fargo have resulted in foreclosure.
“Avoiding foreclosure is a top priority for us and when customers work with us, we can help 7 of every 10 to stay out of foreclosure,” said Teri Schrettenbrunner, senior vice president, Wells Fargo Home Mortgage. “We continue to introduce means to make the home preservation process easier for customers to manage. That includes improving upon and expanding the primary contact model we introduced in June 2010 so that a customer knows exactly who they are working with on a modification from beginning to end. We also continue to aggressively reach out to customers 60 or more days behind on their home loans via mail and telephone in an effort to engage them.”
Wells Fargo says that nearly half of the 58,000 customers that have attended one of the bank’s 31 Home Preservation Workshops or sought help at one of the 27 Home Preservation Centers around the country have received a decision on the spot or shortly after their visit.
The next Home Preservation Workshop is in Bellevue, Washington, on July 7 and 8, 2011. The event is being held at the Hyatt Regency Bellevue and will be open from 9:00 a.m. until 7:00 p.m. each day. The last day to register for this event is today.
Get more information here.
Tags: Wells Fargo, loan modifications, HAMP, low interest rates, reduced mortgage payments, refinancing, foreclosure, Home Preservation Workshops
Source:
Wells Fargo
Residential Construction Declines in May
July 5, 2011 (Shirley Allen)
Private residential construction spending declined 2.1 percent to a seasonally adjusted annual rate of $228.9 billion in May 2011 compared to a revised estimate of $233.8 billion in April 2011, according to the U.S. Census Bureau. Overall private construction spending was down 0.4 percent, from a seasonally adjusted $479.3 billion in April 2011 to $477.2 billion in May 2011.
Private construction spending on new single-family homes declined 0.3 percent from April 2011 to May 2011 to a seasonally adjusted rate of $105.2 billion. April’s estimate was upwardly revised from $104.6 billion to $105.5 billion. Single-family home construction spending was down 11.9 percent compared to May of 2010, which recorded construction spending at a seasonally adjusted rate of $119.3 billion
Multi-family private construction spending declined 2.1 percent in May 2011 from April 2011, to a seasonally adjusted annual rate of $13.2 billion. April’s estimate was also upwardly revised from $12.8 billion to $13.5 billion. Multi-family spending was down 6.8 percent compared to May 2010 which saw spending at a seasonally adjusted annual rate of $14.2 billion.
The remainder of the private residential construction spending in May, $110.5 billion, was money spent for any type of construction to an existing structure ranging from remodeling to additions to swimming pools to replacement of major systems such as HVAC systems. This was a decrease from $114.6 billion in April and a decrease from $111.7 billion in May of 2010.
Tags: Census Bureau, residential construction spending, single-family homes, multi-family dwellings, seasonally adjusted annual rate, remodeling, additions
Source:
Census Bureau
Private residential construction spending declined 2.1 percent to a seasonally adjusted annual rate of $228.9 billion in May 2011 compared to a revised estimate of $233.8 billion in April 2011, according to the U.S. Census Bureau. Overall private construction spending was down 0.4 percent, from a seasonally adjusted $479.3 billion in April 2011 to $477.2 billion in May 2011.
Private construction spending on new single-family homes declined 0.3 percent from April 2011 to May 2011 to a seasonally adjusted rate of $105.2 billion. April’s estimate was upwardly revised from $104.6 billion to $105.5 billion. Single-family home construction spending was down 11.9 percent compared to May of 2010, which recorded construction spending at a seasonally adjusted rate of $119.3 billion
Multi-family private construction spending declined 2.1 percent in May 2011 from April 2011, to a seasonally adjusted annual rate of $13.2 billion. April’s estimate was also upwardly revised from $12.8 billion to $13.5 billion. Multi-family spending was down 6.8 percent compared to May 2010 which saw spending at a seasonally adjusted annual rate of $14.2 billion.
The remainder of the private residential construction spending in May, $110.5 billion, was money spent for any type of construction to an existing structure ranging from remodeling to additions to swimming pools to replacement of major systems such as HVAC systems. This was a decrease from $114.6 billion in April and a decrease from $111.7 billion in May of 2010.
Tags: Census Bureau, residential construction spending, single-family homes, multi-family dwellings, seasonally adjusted annual rate, remodeling, additions
Source:
Census Bureau
Friday, July 1, 2011
Mortgage Performance Improves in the First Quarter of 2011
July 1, 2011 (Brian Michael)
The Office of Thrift Supervision (OTS) reports that mortgage loan performance on first-lien mortgages serviced by large national banks and federal thrifts improved during the first quarter of 2011.
Of the 32.7 million loans in the OTS’s portfolio, 88.6 percent are current and performing at the end of the quarter. Mortgages that were 30-59 days delinquent fell to 2.6 percent, the lowest in three years, while mortgages that were 60 days or more past due and delinquent loans to bankrupt borrowers declined to 4.8 percent, the lowest level since the first quarter of 2009.
Mortgage servicers implemented 557,451 home retention actions, driven by a 78 percent increase in trial-period offers in the first quarter. The number of home retention actions was 17.4 percent higher than the previous quarter.
Permanent modifications declined in the first quarter due to a lower number of trial-period plans in the third and fourth quarter of 2010, which would have resulted in more permanent modifications in the first quarter.
The number of mortgages entering foreclosure declined 11.3 percent from the previous quarter to 312,404 properties. Completed foreclosures increased by 26 percent in the first quarter, but were down 27.7 percent from the first quarter in 2010.
Payment modifications through the government’s Home Affordable Modification Program (HAMP) continued to provide larger relief as the average principal and interest reduction under a HAMP modification was $562 compared to $333 for all modifications.
From the beginning of the government’s loan modifications efforts in 2008 until the end of 2010, mortgage servicers have modified 1,923,603 mortgages. Unfortunately, as time has gone by, the performance of those loan modifications has worsened. At the end of the first quarter, only 52.5 percent of modified loans remain current or have been paid off, of which, 8.2 percent were 30 to 59 days delinquent, 18.5 percent were 60 days or more delinquent, more than 10 percent were in the process of foreclosure, and 4.5 percent had completed the foreclosure process
Loans that were modified by 10 percent or more performed better than those that were modified less than 10 percent. Of the loans that were modified which resulted in a payment reduction of over 10 percent, 61.6 percent were current and performing.
Of the loans that were modified which resulted in the payment being reduced by less than 10 percent, only 37.1 percent remained current and performing.
Tags: OTS, mortgage loan performance, delinquent mortgages, mortgage servicers, foreclosures, loan modifications, HAMP
Source:
OTS
The Office of Thrift Supervision (OTS) reports that mortgage loan performance on first-lien mortgages serviced by large national banks and federal thrifts improved during the first quarter of 2011.
Of the 32.7 million loans in the OTS’s portfolio, 88.6 percent are current and performing at the end of the quarter. Mortgages that were 30-59 days delinquent fell to 2.6 percent, the lowest in three years, while mortgages that were 60 days or more past due and delinquent loans to bankrupt borrowers declined to 4.8 percent, the lowest level since the first quarter of 2009.
Mortgage servicers implemented 557,451 home retention actions, driven by a 78 percent increase in trial-period offers in the first quarter. The number of home retention actions was 17.4 percent higher than the previous quarter.
Permanent modifications declined in the first quarter due to a lower number of trial-period plans in the third and fourth quarter of 2010, which would have resulted in more permanent modifications in the first quarter.
The number of mortgages entering foreclosure declined 11.3 percent from the previous quarter to 312,404 properties. Completed foreclosures increased by 26 percent in the first quarter, but were down 27.7 percent from the first quarter in 2010.
Payment modifications through the government’s Home Affordable Modification Program (HAMP) continued to provide larger relief as the average principal and interest reduction under a HAMP modification was $562 compared to $333 for all modifications.
From the beginning of the government’s loan modifications efforts in 2008 until the end of 2010, mortgage servicers have modified 1,923,603 mortgages. Unfortunately, as time has gone by, the performance of those loan modifications has worsened. At the end of the first quarter, only 52.5 percent of modified loans remain current or have been paid off, of which, 8.2 percent were 30 to 59 days delinquent, 18.5 percent were 60 days or more delinquent, more than 10 percent were in the process of foreclosure, and 4.5 percent had completed the foreclosure process
Loans that were modified by 10 percent or more performed better than those that were modified less than 10 percent. Of the loans that were modified which resulted in a payment reduction of over 10 percent, 61.6 percent were current and performing.
Of the loans that were modified which resulted in the payment being reduced by less than 10 percent, only 37.1 percent remained current and performing.
Tags: OTS, mortgage loan performance, delinquent mortgages, mortgage servicers, foreclosures, loan modifications, HAMP
Source:
OTS
HUD Revises Notice of Disclosure for Service Members
July 1, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced a revision to the Notice of Disclosure form that explains the rights of active duty military personnel and their dependents under the Servicemembers Civil Relief Act (SCRA).
The Act mandates that during times of war, military members who are on active duty are entitled to mortgage protection in the form of mortgage relief, such as the lowering of their mortgage interest rate to no more than six percent, and foreclosure protection such as stopping foreclosure proceedings against certain military personnel who are recalled to active duty unless the creditor has obtained a court order approving it. Courts may stop the proceedings for a time or adjust the debt.
Currently, a written request and a copy of military orders must be sent in order for the service member to get interest rate relief or foreclosure protection under the Act. That doesn’t change.
The new revision to the Notice of Disclosure form notifies the service member that after sending the written request there is no further requirements on the part of the service member to alert their lender of their military status in connection with a foreclosure.
The burden now falls on the lender to make that determination and to send a copy of the Notice of Disclosure to the homeowners who are in default of their mortgage.
"We all stand behind the men and women of our military when they are called upon to serve," said HUD Secretary Shaun Donovan. "The Servicemembers Civil Relief Act enables our armed forces to focus on their mission abroad, without worrying about their families at home."
Service members who seek mortgage or foreclosure relief can call 1-800-342-9647 or visit www.militaryonesource.com/scra for additional information.
Tags: HUD, Servicemembers Civil Relief Act, SCRA, military members, mortgage relief, mortgage protection, foreclosure protection
Source:
HUD
The Department of Housing and Urban Development (HUD) has announced a revision to the Notice of Disclosure form that explains the rights of active duty military personnel and their dependents under the Servicemembers Civil Relief Act (SCRA).
The Act mandates that during times of war, military members who are on active duty are entitled to mortgage protection in the form of mortgage relief, such as the lowering of their mortgage interest rate to no more than six percent, and foreclosure protection such as stopping foreclosure proceedings against certain military personnel who are recalled to active duty unless the creditor has obtained a court order approving it. Courts may stop the proceedings for a time or adjust the debt.
Currently, a written request and a copy of military orders must be sent in order for the service member to get interest rate relief or foreclosure protection under the Act. That doesn’t change.
The new revision to the Notice of Disclosure form notifies the service member that after sending the written request there is no further requirements on the part of the service member to alert their lender of their military status in connection with a foreclosure.
The burden now falls on the lender to make that determination and to send a copy of the Notice of Disclosure to the homeowners who are in default of their mortgage.
"We all stand behind the men and women of our military when they are called upon to serve," said HUD Secretary Shaun Donovan. "The Servicemembers Civil Relief Act enables our armed forces to focus on their mission abroad, without worrying about their families at home."
Service members who seek mortgage or foreclosure relief can call 1-800-342-9647 or visit www.militaryonesource.com/scra for additional information.
Tags: HUD, Servicemembers Civil Relief Act, SCRA, military members, mortgage relief, mortgage protection, foreclosure protection
Source:
HUD
Fannie Mae’s Delinquency Rates Continue to Fall in May
July 1, 2011 (Brian Michael)
Fannie Mae reports that the delinquency rate for single-family homes in its mortgage portfolio decreased to 4.19 percent based on data released in its Monthly Summary for May 2011. That is down from 4.27 percent in April 2011 and down from 5.15 percent in May 2010.
Delinquency rates for multi-family dwellings also continued to improve as the delinquency rate dropped to 0.52 percent in May 2011 compared to 0.57 percent in April 2011. The delinquency rate for multi-family dwellings in May of 2010 was 0.76 percent.
Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure as of period end while multifamily delinquencies are based on the unpaid principal balance of mortgages 60 days or more delinquent or in foreclosure as of period end.
Fannie Mae’s total mortgage portfolio decreased at a compound annualized rate of 13.5 percent in May as their Gross Mortgage Portfolio decreased from $746.8 billion to $738.8 billion. Fannie Mae’s Book of Business decreased at a compound annualized rate of 3.7 percent in May to $3.2 trillion.
The total amount of loan modifications made by Fannie Mae mortgage servicers for May 2011 was 16,419, which brings the total amount of loan modifications for the first five months of the year to 84,133.
Tags: Fannie Mae, Monthly Summary Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications
Source:
Fannie Mae
Fannie Mae reports that the delinquency rate for single-family homes in its mortgage portfolio decreased to 4.19 percent based on data released in its Monthly Summary for May 2011. That is down from 4.27 percent in April 2011 and down from 5.15 percent in May 2010.
Delinquency rates for multi-family dwellings also continued to improve as the delinquency rate dropped to 0.52 percent in May 2011 compared to 0.57 percent in April 2011. The delinquency rate for multi-family dwellings in May of 2010 was 0.76 percent.
Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure as of period end while multifamily delinquencies are based on the unpaid principal balance of mortgages 60 days or more delinquent or in foreclosure as of period end.
Fannie Mae’s total mortgage portfolio decreased at a compound annualized rate of 13.5 percent in May as their Gross Mortgage Portfolio decreased from $746.8 billion to $738.8 billion. Fannie Mae’s Book of Business decreased at a compound annualized rate of 3.7 percent in May to $3.2 trillion.
The total amount of loan modifications made by Fannie Mae mortgage servicers for May 2011 was 16,419, which brings the total amount of loan modifications for the first five months of the year to 84,133.
Tags: Fannie Mae, Monthly Summary Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications
Source:
Fannie Mae
Home Prices Creep Up for Second Consecutive Month
July 1, 2011 (Chris Moore)
It’s not an avalanche, but maybe it’s the start of something good, as national home prices, including distressed sales, increased by 0.8 percent from April 2011 to May 2011 according to CoreLogic’s May Home Price Index (HPI), marking the second consecutive month of gains for the HPI.
Distressed properties over the past year continued to be a major factor in influencing housing prices. Including distressed property sales, home prices were 7.4 percent lower in May 2011 compared to May 2010, but by excluding distressed property sales, home prices would only be 0.4 percent lower than they were a year earlier.
Compared to the market peak in April 2006, home prices have declined 32.7 percent when including distressed property sales and when excluding distressed property sales, home prices have dropped 21.2 percent since the market peak.
CoreLogic defines distressed property sales as short sales and real estate owned (REO) transactions.
"Two consecutive months of month-over-month growth and continued relative strength in the non-distressed market segment are positive seasonal signs in the housing market. Slowly declining shadow inventory and stabilized negative equity levels are also positive signs. Nonetheless, the fragile economic recovery is still critical to the long-term recovery in the housing market," said Mark Fleming,” said Mark Fleming, chief economist for CoreLogic.
Ninety-one out of the top 100 Core Based Statistical Areas (CBSAs) experienced year over year price declines in May 2011, which was the same amount reported in April 2011.
The five states with the highest appreciation including distressed sales were: New York (+4.4 percent), Vermont (+3.9 percent), North Dakota (+3.8 percent), Hawaii (+2.5 percent) and the District of Columbia (+0.5 percent). In April 2011, those states were: North Dakota (+4.2 percent), Vermont (+3.4 percent), New York (+3.2 percent), The District of Columbia (+2.2 percent) and Mississippi (+1.4 percent).
The five states with the greatest depreciation including distressed sales were: Idaho (-16.4 percent), Michigan (-12.9 percent), Arizona (-12.1 percent), Illinois (-11.8 percent) and Nevada (-11.6 percent). In April 2011, those states were: Idaho (-15.2 percent), Michigan (-13.2 percent), Arizona (-11.9 percent), Rhode Island (-11.6 percent) and Nevada (-11.4 percent).
The five states with the highest appreciation excluding distressed sales were: West Virginia (+10.1 percent), Hawaii (+9.0 percent), North Dakota (+8.6 percent), Vermont (+6.3 percent) and New York (+6.1 percent). In April 2011, those states were: West Virginia (+8.4 percent), South Carolina (+6.1 percent), Hawaii (+5.8 percent), Mississippi (+5.0 percent) and North Dakota (+4.5 percent).
The five states with the greatest depreciation excluding distressed sales were: Nevada (-9.8 percent), Idaho (-7.9 percent), Arizona (-7.0 percent), South Dakota (-6.1 percent) and Minnesota (-5.0 percent). In April 2011, those states were: Nevada (-10.3 percent), Idaho (-9.5 percent), Arizona (-6.0 percent), South Dakota (-5.9 percent) and Minnesota (-5.6 percent).
Tags: CoreLogic, home prices, distressed property sales, appreciation, depreciation
Sources:
CoreLogic
It’s not an avalanche, but maybe it’s the start of something good, as national home prices, including distressed sales, increased by 0.8 percent from April 2011 to May 2011 according to CoreLogic’s May Home Price Index (HPI), marking the second consecutive month of gains for the HPI.
Distressed properties over the past year continued to be a major factor in influencing housing prices. Including distressed property sales, home prices were 7.4 percent lower in May 2011 compared to May 2010, but by excluding distressed property sales, home prices would only be 0.4 percent lower than they were a year earlier.
Compared to the market peak in April 2006, home prices have declined 32.7 percent when including distressed property sales and when excluding distressed property sales, home prices have dropped 21.2 percent since the market peak.
CoreLogic defines distressed property sales as short sales and real estate owned (REO) transactions.
"Two consecutive months of month-over-month growth and continued relative strength in the non-distressed market segment are positive seasonal signs in the housing market. Slowly declining shadow inventory and stabilized negative equity levels are also positive signs. Nonetheless, the fragile economic recovery is still critical to the long-term recovery in the housing market," said Mark Fleming,” said Mark Fleming, chief economist for CoreLogic.
Ninety-one out of the top 100 Core Based Statistical Areas (CBSAs) experienced year over year price declines in May 2011, which was the same amount reported in April 2011.
The five states with the highest appreciation including distressed sales were: New York (+4.4 percent), Vermont (+3.9 percent), North Dakota (+3.8 percent), Hawaii (+2.5 percent) and the District of Columbia (+0.5 percent). In April 2011, those states were: North Dakota (+4.2 percent), Vermont (+3.4 percent), New York (+3.2 percent), The District of Columbia (+2.2 percent) and Mississippi (+1.4 percent).
The five states with the greatest depreciation including distressed sales were: Idaho (-16.4 percent), Michigan (-12.9 percent), Arizona (-12.1 percent), Illinois (-11.8 percent) and Nevada (-11.6 percent). In April 2011, those states were: Idaho (-15.2 percent), Michigan (-13.2 percent), Arizona (-11.9 percent), Rhode Island (-11.6 percent) and Nevada (-11.4 percent).
The five states with the highest appreciation excluding distressed sales were: West Virginia (+10.1 percent), Hawaii (+9.0 percent), North Dakota (+8.6 percent), Vermont (+6.3 percent) and New York (+6.1 percent). In April 2011, those states were: West Virginia (+8.4 percent), South Carolina (+6.1 percent), Hawaii (+5.8 percent), Mississippi (+5.0 percent) and North Dakota (+4.5 percent).
The five states with the greatest depreciation excluding distressed sales were: Nevada (-9.8 percent), Idaho (-7.9 percent), Arizona (-7.0 percent), South Dakota (-6.1 percent) and Minnesota (-5.0 percent). In April 2011, those states were: Nevada (-10.3 percent), Idaho (-9.5 percent), Arizona (-6.0 percent), South Dakota (-5.9 percent) and Minnesota (-5.6 percent).
Tags: CoreLogic, home prices, distressed property sales, appreciation, depreciation
Sources:
CoreLogic
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