Today’s News Synopsis:
A big story in the news is construction on homes has increased 15% as of last month according to NAHB. The Mortgage Bankers Association released their latest survey showing that mortgage applications decreased week-over-week. A new bill is being introduced putting new standards on issuing a government-backed mortgage, this time considering energy costs.
In The News:
Mortgage Bankers Association – “$68.8 Billion of Total Multifamily Lending in 2010; a 31 Percent Increase from 2009” (10-19-11)
“In 2010, 2,548 different multifamily lenders provided a total of $68.8 billion in mortgage financing for apartment buildings with five or more units, according to a report from the Mortgage Bankers Association (MBA). The 2010 dollar volume
represents a 31 percent increase from 2009 levels. Just one percent of the lenders accounted for 51 percent of the dollar volume, while three-quarters of the lenders made five or fewer loans over the course of the year.”
Bloomberg – “U.S.Banks See Rising Investor-Refund Demands” (10-19-11)
“Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM) reported more demands from investors to repurchase faulty mortgages made after 2008, when the banks said they upgraded their standards to curb defaults.”
Housing Wire – “Citigroup to refund investors $285 million for mortgage-related CDO” (10-19-11)
“A Citigroup (C: 30.66 +2.61%) broker-dealer subsidiary sold investors on a $1 billion collateralized debt obligation tied to the housing market, while betting the CDO would default, according to the Securities and Exchange Commission.”
San Francisco Chronicle – “Morgan Stanley earns $2.2 billion, stock rises” (10-19-11)
“Morgan Stanley emerged from the tumultuous third quarter in better shape than most of its Wall Street rivals. While other banks reported declines in trading and advisory revenue, Morgan Stanley increased its income from advising companies on deals and trading for its clients. The New York investment bank said Wednesday it earned $2.2 billion in the period, but that also included a big accounting gain.”
Realty Times – “Mortgage Applications Increase as Low Mortgage Rates Remain Steady” (10-19-11)
“As markets changed directions this past week with stocks moving higher, pressure was put on mortgage rates as MBS prices suffered. In the end, Freerateupdate.com’s survey of wholesale and direct lenders show that mortgage rates remained the same regardless of market volatility.”
NAHB – “Housing Starts Rise 15 Percent in September” (10-19-11)
“Nationwide housing starts rose 15 percent to a seasonally adjusted annual rate of 658,000 units in September, marking the strongest pace of residential construction since April of 2010, according to figures released by the U.S. Commerce Department today. The gain was largely attributed to a sharp increase on the multifamily side, which has been trending upward due to increased demand for rental apartments.”
Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (10-19-11)
“Mortgage applications decreased 14.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 14, 2011, which included the Columbus Day holiday.”
Housing Wire – “New bill to include borrower energy costs in mortgage underwriting” (10-19-11)
“A bill introduced Wednesday would force lenders to consider a borrower’s expected energy costs when underwriting a government-backed mortgage.”
DS News – “REOs: Where Are They Now?” (10-19-11)
“In 2006, just as the housing bubble popped, over 355,000 properties proceeded through a foreclosure auction. CoreLogic’s data show that approximately 34 percent (122,000) were successfully bid on by an investor. The remaining 66 percent (233,000) went back to the banks as REO properties.”
18,091 new and resale homes were sold in Southern California, said MDA DataQuick. Moody’s reported commercial real estate prices fell 3.3% from the previous month. A survey from American Strategies and Myers Research showed 77% of adults considered buying a home to be a good financial decision in general.
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