The rush is on for banks to meet a mid-June deadline in offering up plans on how they plan to meet a set of guidelines by U.S. regulators to clean up their foreclosure procedures. The banks will have another 60 days after that deadline to implement the changes.
As part of the rules set by U.S. regulators, 14 financial institutions will be required to provide a single point of contact to borrowers trying to modify a loan or in the foreclosure process as well as set “appropriate deadlines” for deciding whether borrowers can get a loan workout. Regulators are also requiring banks to ensure their staffing levels are on par to handle the flood of foreclosures and loan modifications.
Several banks have already taken steps to implement the changes.
For example, J.P. Morgan says it’s developing a software program to make it easier for employees and borrowers to track loan modification requests. It also has started providing borrowers with a “relationship manager” to help navigate the loan modification or foreclosure process.
Citigroup, which already provides a single point of contact, says in the next few months it'll debut a “concierge" system that will provide a small team of employees to guide delinquent borrowers and home owners at risk of default.
Banks are also making efforts to speed up their loan modifications, after customers have complained of long delays from banks in responding to requests. For example, Los Angeles Neighborhood Housing Services says it takes an average of 141 days for its borrowers to get an answer on an initial loan modification request. Wells Fargo was found to have the fastest turnaround: Initial reviews averaged 79 days. But the bank says now 60 percent of its borrowers receive a decision five days after the company receives the request.
Banks are also increasing their staffing. J.P. Morgan has announced it’ll add up to 3,000 new home-lending jobs, and Bank of America plans to hire about 3,000 employees to focus on its troubled mortgages.
New Incentives From Fannie, Freddie
Banks and mortgage servicers also must meet new guidelines from Fannie Mae and Freddie Mac, announced this week, that aim for more loan modifications and prevent foreclosures from taking too long.
Mortgage servicers will be required to approach borrowers earlier, making contact frequently after just one missed payment.
The GSEs are also offering incentives: They’ll pay $1,600 in incentives depending on how quickly servicers complete a loan workout. They also will impose a $500 compensatory fee on servicers who do not complete loan modification applications within six months after the loan goes delinquent. The changes will go into effect in the second quarter.
Source: “Banks Rush to Improve Foreclosure Practices,” The Wall Street Journal (April 29, 2011)
Friday, April 29, 2011
For Second Straight Week, Mortgage Rates Drop
For the second straight week, mortgage rates continued to inch downward, according to Freddie Mac’s weekly Primary Mortgage Market Survey.
The 15-year fixed-rate mortgage averaged 3.97 percent, the lowest since Dec. 9, 2010. Last week, it averaged 4.02 percent, and a year ago at this time it averaged 4.39 percent.
Meanwhile, the 30-year fixed-rate mortgage, the most popular choice among buyers, averaged 4.78 percent this week, down from last week’s 4.80 percent. Last year at this time, the 30-year fixed-rate mortgage stood at 5.06 percent.
The 5-year adjustable-rate mortgage averaged 3.51 percent this week, down from last week’s 3.61 percent average. A year ago, it stood at 4 percent.
The 15-year fixed-rate mortgage averaged 3.97 percent, the lowest since Dec. 9, 2010. Last week, it averaged 4.02 percent, and a year ago at this time it averaged 4.39 percent.
Meanwhile, the 30-year fixed-rate mortgage, the most popular choice among buyers, averaged 4.78 percent this week, down from last week’s 4.80 percent. Last year at this time, the 30-year fixed-rate mortgage stood at 5.06 percent.
The 5-year adjustable-rate mortgage averaged 3.51 percent this week, down from last week’s 3.61 percent average. A year ago, it stood at 4 percent.
Thursday, April 28, 2011
10 Cities With the Highest-Priced Listings
Last month, the national median list price was $199,500, down 0.25 percent for the year, according to Realtor.com housing data of 146 markets. But in San Francisco, the median list price is more than three times that amount.
The following is a list of the cities that had the highest median list prices in March, based on Realtor.com housing data.
1. San Francisco
Median list price: $639,000
Down 8.45 percent for the year
Median days on the market: 63
2. Santa Barbara-Santa Maria-Lompoc, Calif.
Median list price: $559,000
Down 19.57 percent year-over-year
Median days on the market: 117
3. San Jose, Calif.
Median list price: $470,000
Down 5.05 percent year-over-year
Median days on the market: 71
4. Orange County, Calif.
Median list price: $450,000
Down 5.05 percent year-over-year
Median days on the market: 100
5. Honolulu
Median list price: $444,000
Down 1.11 percent year-over-year
Median days on the market: 112
6. Santa Fe, New Mexico
Median list price: $435,000
Up 4.82 percent year-over-year
Median days on the market: 288
7. Ventura, Calif.
Median list price: $420,000
Down 6.67 percent year-over-year
Median days on the market: 93
8. New York
Median list price: $389,000
Down 2.51 percent year-over-year
Median days on the market: 146
9. Naples, Fla.
Median list price: $389,000
Up 2.40 percent year-over-year
Median days on the market: 225
10. Boulder-Longmont, Colo.
Median list price: $380,000
Up 2.73 percent year-over-year
Median days on the market: 114
Source: REALTOR® Magazine online (April 28, 2011)
The following is a list of the cities that had the highest median list prices in March, based on Realtor.com housing data.
1. San Francisco
Median list price: $639,000
Down 8.45 percent for the year
Median days on the market: 63
2. Santa Barbara-Santa Maria-Lompoc, Calif.
Median list price: $559,000
Down 19.57 percent year-over-year
Median days on the market: 117
3. San Jose, Calif.
Median list price: $470,000
Down 5.05 percent year-over-year
Median days on the market: 71
4. Orange County, Calif.
Median list price: $450,000
Down 5.05 percent year-over-year
Median days on the market: 100
5. Honolulu
Median list price: $444,000
Down 1.11 percent year-over-year
Median days on the market: 112
6. Santa Fe, New Mexico
Median list price: $435,000
Up 4.82 percent year-over-year
Median days on the market: 288
7. Ventura, Calif.
Median list price: $420,000
Down 6.67 percent year-over-year
Median days on the market: 93
8. New York
Median list price: $389,000
Down 2.51 percent year-over-year
Median days on the market: 146
9. Naples, Fla.
Median list price: $389,000
Up 2.40 percent year-over-year
Median days on the market: 225
10. Boulder-Longmont, Colo.
Median list price: $380,000
Up 2.73 percent year-over-year
Median days on the market: 114
Source: REALTOR® Magazine online (April 28, 2011)
Wednesday, April 27, 2011
11 Cities Where Homes Sell the Fastest
California boasted the highest number of cities where homes tended to spend the shortest amount of time on the market last month, based on March housing data from Realtor.com.
In Oakland, Calif., the average days on the market for listings was 50 in March--the least amount of days for median days on the market for the 146 markets reviewed.
Nationally, the median for homes for days on the market was 160 in March, which is an increase of 40 percent in a year.
Here is a list of the cities with the fewest median days on the market from March:
Oakland, Calif.
Median days on the market: 50
Median list price: $319,000
San Francisco
Median days on the market: 63
Median list price: $639,000
Denver
Median days on the market: 66
Median list price: $259,900
Iowa City, Iowa
Median days on the market: 66
Median list price: $187,500
Los Angeles-Long Beach, Calif.
Median days on the market: 70
Median list price: $345,000
Stockton-Lodi, Calif.
Median days on the market: 70
Median list price: $175,000
Bakersfield, Calif.
Median days on the market: 70
Median list price: $141,500
San Jose, Calif.
Median days on the market: 71
Median list price: $470,000
Anchorage, Alaska
Median days on the market: 71
Median list price: $279,975
Fresno, Calif.
Median days on the market: 71
Median list price: $170,000
Tulsa, Okla.
Median days on the market: 71
Median list price: $147,900
In Oakland, Calif., the average days on the market for listings was 50 in March--the least amount of days for median days on the market for the 146 markets reviewed.
Nationally, the median for homes for days on the market was 160 in March, which is an increase of 40 percent in a year.
Here is a list of the cities with the fewest median days on the market from March:
Oakland, Calif.
Median days on the market: 50
Median list price: $319,000
San Francisco
Median days on the market: 63
Median list price: $639,000
Denver
Median days on the market: 66
Median list price: $259,900
Iowa City, Iowa
Median days on the market: 66
Median list price: $187,500
Los Angeles-Long Beach, Calif.
Median days on the market: 70
Median list price: $345,000
Stockton-Lodi, Calif.
Median days on the market: 70
Median list price: $175,000
Bakersfield, Calif.
Median days on the market: 70
Median list price: $141,500
San Jose, Calif.
Median days on the market: 71
Median list price: $470,000
Anchorage, Alaska
Median days on the market: 71
Median list price: $279,975
Fresno, Calif.
Median days on the market: 71
Median list price: $170,000
Tulsa, Okla.
Median days on the market: 71
Median list price: $147,900
Tuesday, April 26, 2011
Is This Really a Buyer's Market?
With falling home prices and higher inventories, most of the public views real estate as a “buyer’s market,” in which buyers hold more of the control and sellers will more eagerly accept lower offers just to sell.
Not so fast, say buyers and sellers. More buyers are finding the sellers in the driver’s seat.
Buyer Young Hammack gave up looking for homes for a while after being outbid on three properties in California. "It's a false buyer's market," Hammack says. "If you think prices are cheap, wait until you start putting offers in."
Many sellers may be unable or unwilling to lower their home prices — mostly because they may be underwater on their mortgage — so buyers are increasingly finding lower offers than list price denied. Buyers, on the other hand, may be reluctant to agree to a deal if they don’t feel like they are getting it at a deep discount, industry insiders say.
Traditional buyers also are finding even buying a foreclosure can be difficult as they’re increasingly outbid by investors who are willing to pay cash.
"There's a shortage of attractive inventory," says Glenn Kelman, chief executive of Redfin Corp. "Customers just keep getting outbid on the houses that they want."
Real estate professional Steve Capen with Keller Williams Realty in St. Petersburg, Fla., says that the homes most in demand among buyers often don’t require much repair work and are located in good school districts and choice neighborhoods near transit hubs.
"What's selling is the cream of the crop, and they sell fast," Capen says. "If it's not cream of the crop, it's getting hammered."
Source: “Buyers' Market? Stressed Sellers Say Not So Fast,” The Wall Street Journal online (April 25, 2011)
Not so fast, say buyers and sellers. More buyers are finding the sellers in the driver’s seat.
Buyer Young Hammack gave up looking for homes for a while after being outbid on three properties in California. "It's a false buyer's market," Hammack says. "If you think prices are cheap, wait until you start putting offers in."
Many sellers may be unable or unwilling to lower their home prices — mostly because they may be underwater on their mortgage — so buyers are increasingly finding lower offers than list price denied. Buyers, on the other hand, may be reluctant to agree to a deal if they don’t feel like they are getting it at a deep discount, industry insiders say.
Traditional buyers also are finding even buying a foreclosure can be difficult as they’re increasingly outbid by investors who are willing to pay cash.
"There's a shortage of attractive inventory," says Glenn Kelman, chief executive of Redfin Corp. "Customers just keep getting outbid on the houses that they want."
Real estate professional Steve Capen with Keller Williams Realty in St. Petersburg, Fla., says that the homes most in demand among buyers often don’t require much repair work and are located in good school districts and choice neighborhoods near transit hubs.
"What's selling is the cream of the crop, and they sell fast," Capen says. "If it's not cream of the crop, it's getting hammered."
Source: “Buyers' Market? Stressed Sellers Say Not So Fast,” The Wall Street Journal online (April 25, 2011)
Monday, April 25, 2011
New-Home Sales Gain Momentum
After three straight months of declines, sales of new homes got a boost last month, jumping 11 percent, according to the Commerce Department’s latest new-home sales report released Monday.
New-home sales rose in March to a seasonally adjusted rate of 300,000 homes, up from February’s 250,000. However, the number is still far from what economists view as a healthy 700,000-a-year pace for the sector.
The median price of a new home increased 3 percent from February to $213,800. New-home prices are about 34 percent higher than the median price of existing homes, according to economists.
Regionally, new-home sales saw the biggest boost in the Northeast, jumping nearly 67 percent in March. The West saw an increase in new-home sales last month by nearly 26 percent; the Midwest posted a 13 percent increase; and in the South, new-home sales dipped 0.6 percent.
The new-home market continues to be battered by a high number of foreclosures that continue to dampen home prices across the country. With 1.2 million foreclosures forecast this year, the new-home sales market may not see a major turnaround for years, according to RealtyTrac Inc.
However, while residential construction has decreased considerably in recent years, reports have recently shown building permits have increased 28 percent for apartment and condo buildings.
New-home sales rose in March to a seasonally adjusted rate of 300,000 homes, up from February’s 250,000. However, the number is still far from what economists view as a healthy 700,000-a-year pace for the sector.
The median price of a new home increased 3 percent from February to $213,800. New-home prices are about 34 percent higher than the median price of existing homes, according to economists.
Regionally, new-home sales saw the biggest boost in the Northeast, jumping nearly 67 percent in March. The West saw an increase in new-home sales last month by nearly 26 percent; the Midwest posted a 13 percent increase; and in the South, new-home sales dipped 0.6 percent.
The new-home market continues to be battered by a high number of foreclosures that continue to dampen home prices across the country. With 1.2 million foreclosures forecast this year, the new-home sales market may not see a major turnaround for years, according to RealtyTrac Inc.
However, while residential construction has decreased considerably in recent years, reports have recently shown building permits have increased 28 percent for apartment and condo buildings.
Thursday, April 21, 2011
Mortgage Rates Drop This Week
fter four straight weeks of rising, mortgage rates dropped this week, according to Freddie Mac’s weekly market survey.
Here are how rates fared for the week:
30-year fixed-rate mortgages: averaged 4.80 percent, down from last week’s 4.91 percent average. Last year at this time, the 30-year fixed-rate mortgage averaged 5.07 percent.
15-year fixed-rate mortgage: averaged 4.02 percent, down from last week’s 4.13 percent. A year ago at this time, the 15-year mortgage averaged 4.39 percent.
5-year adjustable-rate mortgage: averaged 3.61 percent this week, down from last week when it averaged 3.78 percent. Last year at this time, the 5-year ARM stood at 4.03 percent.
"Low inflation is keeping mortgage rates at bay,” says Frank Nothaft, chief economist at Freddie Mac.
Here are how rates fared for the week:
30-year fixed-rate mortgages: averaged 4.80 percent, down from last week’s 4.91 percent average. Last year at this time, the 30-year fixed-rate mortgage averaged 5.07 percent.
15-year fixed-rate mortgage: averaged 4.02 percent, down from last week’s 4.13 percent. A year ago at this time, the 15-year mortgage averaged 4.39 percent.
5-year adjustable-rate mortgage: averaged 3.61 percent this week, down from last week when it averaged 3.78 percent. Last year at this time, the 5-year ARM stood at 4.03 percent.
"Low inflation is keeping mortgage rates at bay,” says Frank Nothaft, chief economist at Freddie Mac.
Subscribe to:
Posts (Atom)