Today’s News Synopsis:
California officials may be implementing new builder fees. Home sales generated $934 million from last year. Fannie mae lost 15.9 billion dollars during quarter 4 of 2009. Warren Buffet predicts the residential real estate market will begin to recover in 2011.
In The news:
Sacramento Bee – “Back-seat Driver: Sacramento proposes new-building fees for road projects” (3-1-10)
“Sacramento city officials today will propose a fee on new buildings – including up to $6,250 per single-family house – to help pay for $710 million in transportation projects over the next two decades.”
Orange County Register – “Best Jan. for real estate agents in 3 years” (3-1-10)
“Home sales generated $934 million, up 20.9% from January 2009, when sales generated $717 million. The lowest amount of revenue was generated in January 2008, when home sales totaled $670 million.”
Wall Street Journal – “Bid to Curb Mortgage Tax Break Falters” (3-1-10)
“President Barack Obama’s latest budget proposal, released in February, includes a provision that would shrink deductions for mortgage interest, real-estate taxes, charitable contributions and other items for married couples with annual incomes of more than $250,000, or individual filers earning more than $200,000. Under the proposal, such taxpayers would save 28 cents of tax liability for every $1 of mortgage interest or other eligible expenses, down from 35 cents now.”
Housing Wire – “A Dark Day for the Mortgage Industry” (3-1-10)
“the MBA, along with committee input from Fannie Mae, Freddie Mac (read: government) and others, are now pushing the U.S. Treasury to extend taxpayer-funded forbearances to unemployed owner-occupants. I say “taxpayer-funded” for a reason, as you’ll see. Under the MBA proposal, unemployed borrowers would be asked to make nominal payments equal to 31% of whatever their remaining income is – which for many millions of Americans without savings would be 31% of their unemployment benefits, not nearly enough to cover their usual mortgage. In exchange for whatever they can afford, borrowers would receive forbearances for up to 9 months – with the servicer continuing to advance full principal and interest to investors the entire time.”
Housing Wire – “Fannie Seeks $15bn of Aid After Quarterly Loss” (3-1-10)
“Government-sponsored entity (GSE) Fannie Mae (FNM: 0.99 0.00%) on Friday reported a $15.2bn net loss for Q409, narrowed slightly from a $18.9bn net loss in the previous quarter. The quarterly loss resulted in a net worth deficit of $15.3bn as of Dec. 31, 2009, according to the earnings statement”
Bloomberg - “Buffett Says U.S. Housing Will Recover by Next Year” (3-1-10)
“Billionaire Warren Buffett said the U.S. residential real estate slump will end by about 2011, predicting that’s how long it will take demand for homes to catch up with the supply. ”
Bloomberg - “General Growth Aims for Oct. 5 Exit Plan Confirmation” (3-1-10)
“General Growth Properties Inc., bankrupt owner of more than 200 U.S. malls from Boston to Los Angeles, aims to confirm a reorganization plan by Oct. 5, after taking 60 days to consider proposals that compete with one from Brookfield Asset Management Inc.”
Tags: agent, bankrupt, bruce norris, building, employment, fannie mae, freddie mac, general growth, mall, MBA, Obama, real estate, tax, treasury, Warren Buffett