Today’s News Synopsis:
Research from NAR shows that most small-scale, exterior home modificaitons, such as door replacements and wood deck additions, are the most profitable at resale. The Federal Reserve’s commercial/multifamily mortgage debt decreased by 0.8 percent from the second quarter 2009. Radar Logic estimates that housing will continue to have trouble in 2010, but does not believe that a second collapse will occur. According to ForeclosureRadar.com, foreclosure cancellations in California climbed 40% in November.
In The News:
NAR - “Exterior Remodeling Proves Best Bang for Your Buck, Realtors® Report” (12-17-09)
“Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey. On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.”
Mortgage Bankers Association – “MBA Study Shows Narrowing in Profit Margins For Independent Mortgage Bankers and Subsidiaries” (12-17-09)
“Independent mortgage bankers and subsidiaries made an average profit of $902 on each loan they originated in the third quarter of 2009, according to the Mortgage Bankers Association (MBA). This profit marks a decrease from the second quarter of 2009 when profits averaged $1,358 per loan, according to the MBA’s most recent Quarterly Mortgage Bankers Performance Report. This report measures the performance of independent mortgage bankers and subsidiaries of banks, thrifts and hedge funds.”
Mortgage Bankers Association – “MBA Analysis: GSEs Increase Multifamily Mortgage Holdings; Banks Decrease Construction Loans and Increase Commercial/Multifamily Mortgages in Third Quarter 2009″ (12-17-09)
“The $3.43 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $28 billion or 0.8 percent from the second quarter 2009. Multifamily mortgage debt outstanding dropped to $912 billion, a decrease of $1 billion or 0.1 percent from second quarter. The level of commercial/multifamily mortgage debt outstanding decreased in the third quarter, to $3.43 trillion, according to the Mortgage Bankers Association (MBA) analysis of the Federal Reserve Board Flow of Funds data.”
Housing Wire – “Housing Won’t Collapse in 2010, says Radar Logic” (12-17-09)
“The US housing market could be in for some serious trouble in 2010, but predictions of a second collapse are ‘exaggerated,’ according to a report from Radar Logic, a real estate data and analytics company. Housing values could significantly recover in the spring of 2010 as low prices attract a blend of owner-occupiers and investors.”
Housing Wire – “Total Mortgage Has Record Origination Year” (12-17-09)
“Total Mortgage Services said it expects to originate a company-record $750m in mortgages in 2009. It’s a 67% increase from 2008’s level of $450m in originated loans for the Milford, Conn.-based lender, which originates mortgages in more than 20 states. Total Mortgage credits low interest rates for the boost in both purchase and refinance activity.”
Housing Wire – “Foreclosure Cancellations Rise 40% in California” (12-17-09)
“Foreclosure cancellations in California climbed 40% in November, according to a monthly report from ForeclosureRadar.com, which tracks foreclosures in California. Analysts adjusted the numbers to account for November’s four fewer filing days. Average daily foreclosure filings declined only 1%. Notice of trustee sales declined 13.4%, and the amount of real estate owned (REO) property increased 2.4%. Sales to third parties increased 8% on a daily average basis.”
Bloomberg – “Luxury-Home Owners in U.S. Use ‘Short Sales’ as Defaults Rise” (12-17-09)
“Homeowners with mortgages of more than $1 million are defaulting at almost twice the U.S. rate and some are turning to so-called short sales to unload properties as stock-market losses and pay cuts squeeze wealthy borrowers.”
Bloomberg - “General Growth Considering ‘Indications of Interest’” (12-17-09)
“General Growth Properties Inc., the mall owner seeking to emerge from bankruptcy next year, will consider all offers for the company and may sell shares to the public to raise capital. General Growth won permission this week from a bankruptcy judge to restructure about $10.25 billion in debt at some of its properties. The Chicago-based company is trying to restructure $3 billion of additional secured debt, it said today in a statement. ”
Bloomberg - “U.S. Mortgage Rates Rise to 4.94%, Freddie Mac Says” (12-17-09)
“Mortgage rates for fixed 30-year U.S. home loans rose for a second consecutive week after hitting a record low this month. The rate for the week ended today increased to 4.94 percent from 4.81 percent. It set a record low 4.71 percent in the week ended Dec. 3. The average 15-year rate was 4.38 percent, the McLean, Virginia-based company said today in a statement.”
Looking Back:
One year ago, Lawrence Yun of the NAR estimated that commercial real estate would be damaged by job losses. CAR expected home prices to increase by 12 percent in 2008. Delinquencies for homes increased to 4.6 percent during the third quarter. The MBA reported that mortgage loan application volume increased during the week of December 12, 2008.
Tags: banker, bruce norris, commercial, debt, default, Federal Reserve, foreclosure, foreclosureradar.com, freddie mac, general growth, interest, luxury, MBA, modification, mortgage, mortgage bankers association, NAR, national association of realtors, radar logic, real estate, refinance, short sale, the norris group, Total Mortgage Services