Today’s News Synopsis:
The percentage of homowners who are underwater has increased to 28.6% according to the latest Zillow report. Home prices increased 4% in the third quarter despite the value of houses decreasing slightly from the previous quarter. DS News reported overdue mortgages increased for the first time in almost two years.
In The News:
Housing Wire - “3Q home prices up 4%, housing value dips slightly from last quarter” (11-8-11)
“Home prices jumped 4% in the third quarter, though home values stagnated from the previous quarter, according to separate reports Tuesday. Third-quarter prices showed two straight quarters of growth according to the
home price index from Integrated Asset Services. Second-quarter prices had increased 2% from the first quarter.”
DS News - “Past-Due Mortgages Rise for First Time Since 2009: Report” (11-8-11)
“The national mortgage delinquency rate edged up during the third quarter of 2011, marking the first increase in nearly two years, according to TransUnion.”
NAHB - “John Courson Named President and CEO of Home Builders Institute” (11-8-11)
“John A. Courson, an established housing industry executive who most recently served as the president and chief executive officer of the Mortgage Bankers Association (MBA), has been tapped to become the new president and chief executive officer of the Home Builders Institute (HBI).”
Bloomberg - “Ally’s ResCap Said to Hire Centerview for Restructuring” (11-8-11)
“Ally Financial Inc.’s unprofitable Residential Capital LLC mortgage unit hired Centerview Partners LLP to advise on a restructuring and negotiations with creditors, said people familiar with the matter.”
O.C. Register - “Poll: 42% want less governmnet in housing” (11-8-11)
“A politics and real estate survey from Move Inc. shows 42% of Americans polled think government’s role in the housing market should be reduced. Meanwhile, 31% told pollsters that the role of government in housing should remain the same. Only 21.3% preferred an increased role for government in housing.”
San Francisco Chronicle - “Consumer credit rises in September” (11-8-11)
“Consumer borrowing in the United States rose in September, boosted by a gain in non-revolving credit that includes financing for auto purchases and school loans.”
Housing Wire – “Senate wants changes to Fannie, Freddie executive pay” (11-8-11)
“A bipartisan group of 60 senators sent a scathing letter to the Federal Housing Finance Agency and the Treasury Department demanding a crack down on executive pay at Fannie Mae and Freddie Mac.”
Bloomberg Businessweek - “U.S. ‘Underwater’ Homeowners Increase to 28.6%, Zillow Reports” (11-8-11)
“The number of U.S. homeowners who owe more than their properties are worth climbed in the third quarter as lenders repossessed fewer houses, Zillow Inc. said.”
DS News - “CFPB Will Offer Some Servicers Early Warnings” (11-8-11)
“The Consumer Financial Protection Bureau (CFPB) will offer some mortgage servicers an early warning before pursuing legal action, according to an announcement released Monday.”
Bloomberg - “Toll Brothers Quarterly Revenue Increases 6% Amid Gain in Home Orders” (11-8-11)
“Toll Brothers Inc. (TOL), the largest U.S. luxury-home builder, said fourth-quarter revenue increased 6 percent amid strong sales at its East Coast communities.”
Looking Back:
The NAR reported FHA, Fannie Mae and Freddie Mac accounted for over 90% of the mortgage market. New California building codes, known as CALGreen, were expected to be enforced on January 1st, 2011. Richard Fisher of the Dallas Federal Reserve believed the low interest rates were doing little to stimulate the economy. Fannie Mae acquired 85,340 REO properties in the 3rd quarter of 2010.
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