Sources:
http://money.cnn.com/2010/07/20/real_estate/housing_starts/
http://www.inman.com/news/2010/07/20/fha-raising-fico-floor-reducing-seller-concessions
http://www.housingwire.com/2010/07/19/june-home-sales-prices-up-from-2009-remax-survey
http://www.realtor.org/press_room/news_releases/2010/07/ehs_june_above
http://www.mbaa.org/NewsandMedia/PressCenter/73447.htm
http://www.dqnews.com/Articles/2010/News/California/CA-Foreclosures/RRFor100721.aspx
http://www.car.org/newsstand/newsreleases/junereport/
Today’s News Synopsis:
The HVCC will be eliminated in less than 90 days. A national survey from Citi shows that 62 percent of Americans believe the economy has not bottomed. Mortgage purchase and issuance at Freddie Mac totaled $179 billion during the first half of 2010.
In The News:
Housing Wire – “Obama Signs Bill Eliminating HVCC” (7-23-10)
“When President Barack Obama signed the Dodd-Frank Act this week to reform the financial markets, the Home Valuation Code of Conduct (HVCC) was officially set for elimination in 90 days.”
Housing Wire – “Citi Survey: Most Americans Don’t See Economic Recovery Any Time Soon” (7-23-10)
“According to a nationwide survey released Thursday by Citi and Hart Research Associates, nearly two-thirds of Americans (62%) believe the economy still has yet to hit bottom, with a lack of jobs and troubles managing debt largely responsible for the gloomy outlook.”
Housing Wire – “Fed Off to Slow Start Unwinding Billions in Mortgage Assets” (7-23-10)
“The Federal Reserve, which responded to the financial crisis with unprecedented monetary policy, is off to a slow start in settling mortgage assets it bought from government-sponsored enterprises, according to Federal Reserve Bank of Cleveland (FRBC) vice presidents John Carlson and Joseph Haubrich and research assistant John Linder.”
Housing Wire – “If HAMP Is a Band-Aid, HAFA’s an Exit Strategy” (7-23-10)
“I bought my home in 2006 for $500,000 and put $50,000 down, and I got a loan for $450,000 at 7% for 30 years. I could afford the payment, and I paid on time. Fast forward to 2009. I am not making the bonuses I was in 2006, and my wife’s hours have been cut so our family income is not what it was. It seems that the HAMP program was made for me. Now comes the real question. Do I want to stay in the house? I owe essentially $450,000 on my home. From 2006 through 2009 the value of my home decreased from $500,000 to $240,000. I now owe $450,000 on an asset that is worth $240,000. Even if I were offered a mod to 3% and the term extended to 40 years do I really want continue to pay on a loan when the asset is worth about half of what I owe?”
California Builder - “Five Common Mistakes When Remodeling Your Kitchen” (7-23-10)
“Make sure you have the specs in the contractors’ hands prior to cabinets being ordered. This will result in a better fit for the appliance into the cabinets — especially wall ovens, built-in microwaves, cook tops and large fridges.”
Orange County Register - “Home sales up in only 42 of 83 ZIPs” (7-23-10)
“Only 42 of 83 O.C. ZIPs had year-over-year sales gains in the period. 5 of 83 O.C. ZIPs has sales gains of 100% or more in the period. Overall, countywide sales were +9% vs. a year ago.”
Housing Wire – “Freddie’s Mortgage Purchase and Issuance Reaches $179bn in H110″ (7-23-10)
“Mortgage purchase and issuance at Freddie Mac rose to $30.9bn in June, from $25.1bn in May, bringing the year-to-date total to $179bn for the first half of 2010 (HI10), according to a monthly volume summary (download here). Freddie’s total mortgage portfolio decreased at an annualized rate of 0.9% in June. Total guaranteed Participation Certificates (PCs) and structured securities issued fell at an annualized rate of 0.6%.”
Looking Back:
One year ago, the average 30-year mortgage rate increased to 5.2 percent. The National Association of Realtors said that home sales rose annual rate of 4.89 million. The FBI documented nearly 29,000 mortgage fraud SARs in the first two months of 2009.
Tags: bruce norris, Citi, debt, Dodd-Frank, economy, Federal Reserve, FRBC, freddie mac, HAFA, hamp, Hart Research, HVCC, John Carlson, John Linder, Joseph Haubrich, mortgage, Obama, real estate