The Federal Housing Finance Agency (FHFA) today announced the first step of a Real-Estate Owned (REO) Initiative targeted at the hardest-hit metropolitan areas announced in August 2011. Investors interested in participating may “pre-qualify” to establish eligibility to bid on transactions in the initial pilot phase as well as subsequent phases.
The REO Initiative will allow qualified investors to purchase pools of foreclosed properties with the requirement to rent the purchased properties for a specified number of years. This rental period could provide relief for local housing markets that continue to be depressed by the volume of foreclosed properties, and provide additional rental options to certain markets. Prequalification ensures investors will have the financial capacity and operational expertise to manage properties in a way that is conducive to the stabilization of communities hard hit by the housing downturn.
During the pilot phase, Fannie Mae will offer for sale pools of various types of assets including rental properties, vacant properties and non-performing loans with a focus on the hardest-hit areas. The first transaction will be announced in the near-term.
California’s housing market is unique. California has an extremely low REO inventory where REO sales are getting top dollar in multiple offer situations. On average, REOs are sold are sold in less than 60 days. Bulk sales in California not only would have a negative impact on home prices, but would also push down home values for existing homeowners in those communities. C.A.R. is asking that the Federal Housing Finance Agency, Dept. of Treasury, and Dept. of Housing and Urban Development consider this program only in areas where REO inventory is abundant and selling in bulk makes sense.
More info
The Orange County Register
California house prices had the seventh-biggest price drop among U.S. states in November, falling 5.9 percent from year-ago levels, according to data firm CoreLogic
Read the full story
http://lansner.ocregister.com/2012/01/10/156906/156906/
Calif. median home price: November 2011: $280,960 (Source: C.A.R.)
Calif. highest median home price by region/county November 2011: Marin: $736,410 (Source: C.A.R.)
Calif. lowest median home price by region/county November 2011: Madera: $103,330 (Source: C.A.R.)
Calif. Pending Home Sales Index: November 2011: 109.8, an increase of 11 percent compared with the prior year.
Calif. Traditional Housing Affordability Index: Third quarter 2011: 52 percent (Source: C.A.R.)
Mortgage rates: Week ending 1/5/2012 30-yr. fixed: 3.91% fees/points: 0.8% 15-yr. fixed: 3.23 fees/points: 0.8% 1-yr. adjustable: 2.80% Fees/points: 0.6% (Source: Freddie Mac)
Sacramento Bee
California landlords who have long had the right to restrict pets, noise, and even water beds in their units, can now prohibit smoking under a new law that took effect Sunday.
Read the full story
http://www.sacbee.com/2012/01/02/4157073/state-now-allows-smoking-bans.html
The California Composite Index of Consumer Confidence declined approximately 10 points to 78.6 in the fourth quarter of 2011 compared with the third quarter’s revised reading of 88.2, according to the A. Gary Anderson Center for Economic Research at Chapman University. An index level below 100 reflects a higher percentage of pessimistic consumers versus those who are optimistic. In contrast, the survey of consumer confidence at the national level conducted by the University of Michigan showed a reading of 64.1 in the month of November increasing from the August reading of 55.7.
The California Composite Index is generated based on three indices: Consumers’ outlook on current and future economic conditions, and an index measuring consumers’ spending plan. All three components of the composite index declined over the last three months.
Continued high unemployment rate in California, currently at 11.7 percent, and volatile stock market may be the main factors explaining why the consumer assessment of the current economic conditions has deteriorated so sharply. This index declined to a reading of 60.8 in November of 2011 from 67.1 in August of 2011. The index measuring future economic conditions also decreased to a reading of 95.8 in November from a reading of 106.8 in August 2011. Moreover, the index measuring consumers’ planned spending on big-ticket items decreased significantly from the August reading of 93.4. The reading of 79.8 suggests consumers’ spending in the early part of 2012 may decline sharply from the current strong pace reported by the retailers.
More info
The Los Angeles Times
An alliance by California and Nevada to jointly investigate misconduct and fraud in the mortgage business further divides efforts by the nation’s attorneys general to bring the home-lending industry to account for improper foreclosure practices.
Read the full story
http://www.latimes.com/business/realestate/la-fi-mortgage-probe-20111207,0,7895467.story
The Los Angeles Times
Americans’ confidence in the economy in November bounced back to its highest level since July, the latest sign that consumers are beginning to feel more cheerful about spending during the holiday shopping season.
Read the full story
http://www.latimes.com/business/la-fi-economy-20111129,0,905798.story
Under the Sensible Accounting to Value Energy (SAVE) Act, estimated energy-consumption expenses for a home would be included as a mandatory new underwriting factor.
Read the full story
http://lat.ms/vkYceT
Five major banks could be required to commit roughly $15 billion to reduce principal balances for struggling homeowners and modify loans in other ways under a proposed deal to settle allegations linked to the “robo-signing” scandal.
Read the full story
http://yhoo.it/t7Gjke
Calif. median home price: August 2011: $297,060 (Source: C.A.R.)
Calif. highest median home price by region/county August 2011: Marin: $806,550 (Source: C.A.R.)
Calif. lowest median home price by region/county August 2011: Siskiyou County: $116,670 (Source: C.A.R.)
Calif. Pending Home Sales Index: August 2011: 125.3, an increase of 12.6 percent compared with a prior year.
Calif. Traditional Housing Affordability Index: Second quarter 2011: 51 percent (Source: C.A.R.)
Mortgage rates: Week ending 10/06/2011 30-yr. fixed: 3.94 fees/points: 0.8% 15-yr. fixed: 3.26 fees/points: 0.8% 1-yr. adjustable: 2.95% Fees/points: 0.5% (Source: Freddie Mac)
