Appraisal Industry News

US home sales rise 9.4 percent in September

2009-10-23T12:52:00.000-07:00

WASHINGTON -- U.S. home resales rose far more than expected last month to the highest level in more than two years as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.

Source:Associated Press
US home sales rise 9.4 percent in SeptemberBy ALAN ZIBEL , 10.23.09, 10:05 AM EDT

FDIC’s Bair: Bank Failures Will Continue at a ‘Good Clip’ This Year

2009-10-13T12:46:00.000-07:00

Banks have stabilized since the collapse of Lehman, but “failures will continue at a good clip” this year and next, FDIC Chairman Sheila Bair told CNBC’s Maria Bartiromo Tuesday.

source; http://wallstreetpit.com/10389-fdics-bair-bank-failures-will-continue-at-a-good-clip-this-year; editor

Listed: Meticulous Arts And Crafts Replica

2009-10-13T12:42:00.000-07:00

Newly constructed homes that imitate historical styles often miss their mark, capturing the essence of a period from the outside, but leaving the interior devoid of character.
That’s not the case for this recently built, $2.8 million, six-bedroom home in Bedford, N.Y., constructed in the arts and crafts style. The indoor details were attended to as carefully as the stone and shingle exterior: wainscoting, arched doorways and molding galore adorn the place.

Source; http://www.forbes.com/2009/10/09/bedford-luxury-zip-lifestyle-real-estate-house-of-week.html; franseca levy

What You Need to Know About Reverse Mortgages

2009-09-24T07:45:00.000-07:00

With today’s retirees living longer than expected, many of them are turning to other sources of income in their golden years. A buzzword among many seniors is “reverse mortgage,” though critics say they’re often too good to be true. So what is a reverse mortgage, and what does it really do?

source; http://www.foxbusiness.com/story/personal-finance/on-topic/need-know-reverse-mortgages-644573935/ ; Kathryn Elizabeth Tuggle

Classic Architecture Perched On A Canyon

2009-09-24T07:33:00.000-07:00

$1.2 million, any home buyer should expect a lot of perks packaged into such a price. But this three-bedroom ranch, in the California city of Arcadia, offers none of the baroque bathrooms, elevators and home theaters that characterize many McMansions. Its sellers are betting that buyers will forgo the chintz for a sleek, unembellished example of classic architecture. The stunning view of Big Santa Anita Canyon shouldn't hurt the home's sale, either.

source; http://www.forbes.com/2009/09/23/home-of-the-week-lifestyle-real-estate-arcadia-house.html Francesca Levy,

FHA Announces Several Policy Changes. Adopts HVCC Guidelines

2009-09-21T07:32:00.000-07:00

The Federal Housing Administration (FHA) today announced several significant policy changes that are intended to improve their exposure to risk. The changes, effective January 1, include.

source; http://www.mortgagenewsdaily.com/09182009_drastic_fha_guideline_changes.asp
Adam Quinones

Where Home Prices Are Likely To Rise

2009-09-15T08:53:00.000-07:00

Though home prices in many areas still have room to drop, economists say some of the country's real estate markets are showing early signs of repair. A two-year slide in values has eased its stomach-turning pace, and some analysts expect the national market to bottom out by mid 2010.

source: www.forbes.com ; Francesca Levy

http://www.forbes.com/2009/09/14/cities-home-prices-lifestyle-real-estate-homes-cities.html

Buyer power is new reality of housing market

2009-09-09T10:48:00.000-07:00

The American dream of homeownership is still attainable. Buyers just have to deal with a new set of realities.

source; http://www.msnbc.co/, associated press

http://www.msnbc.msn.com/id/32739806/ns/business-economy_in_turmoil/

Treasury says millions more foreclosures coming

2009-09-09T09:22:00.000-07:00

WASHINGTON (Reuters) - Only 12 percent of U.S. homeowners eligible for loan modifications under the Obama administration's housing rescue plan have had their mortgages reworked, and millions more foreclosures are coming, the Treasury Department said on Wednesday.

source; By Glenn Somerville http://www.reuters.com/

http://www.reuters.com/article/newsOne/idUSTRE5883S620090909

Mortgage Applications, Loan Rates Fall

2009-09-08T09:37:00.000-07:00

Mortgage applications fell for the first time since July, according to a report released Wednesday by the Mortgage Bankers Association.
Last week's 2.2% seasonally adjusted decline in applications, compared to the week prior, came despite a drop in mortgage rates. Fixed rate 30-year mortgages averaged 5.15% last week, down from 5.24% a week ago, the MBA said. Applications for loans to refinance and purchase also pushed lower, falling 3.1% and 1.0%, respectively, when compared to the week prior.

source; Kathryn Glass
FOXBusiness http://www.foxbusiness.com/story/markets/industries/real-estate/mortgage-applications-loan-rates-fall/s

Europe's Most Idyllic Places To Live

2009-09-04T08:00:00.000-07:00

Last year, the rising dollar meant European property was becoming more affordable. But even now that the globe is fully in recession, Europe's most idyllic locations have yet to lose any of their charm.

source; http://www.forbes.com/, Parmy Olson, 09.03.09, 06:00 PM

http://www.forbes.com/2009/09/03/europe-most-idyllic-places-lifestyle-real-estate.html

AG Settles With Defendant In Foreclosure Rescue Scheme

2009-09-04T07:55:00.000-07:00

Attorney General Martha Coakley has settled a suit with Marie Bettie Mereus, a straw buyer who participated in a massive foreclosure scheme targeted at troubled homeowners facing foreclosure.

source; Banker and Tradesman

http://www.bankerandtradesman.com/news134537.html

Unemployment rate jumps to 9.7 percent

2009-09-04T07:51:00.000-07:00

WASHINGTON - The unemployment rate jumped almost half a point to 9.7 percent in August, the highest since 1983, reflecting a poor job market that will make it hard for the economy to begin a sustained recovery.

sources; associated presshttp://www.msnbc.msn.com/id/32689068/ns/business-stocks_and_economy/

Government Fears Commercial Real Estate Defaults: WSJ

2009-09-01T08:04:00.000-07:00

Federal Reserve and Treasury officials fear the shaky commercial real estate sector could stall an economic recovery, according to a report in The Wall Street Journal.

source:http://www.foxbusiness.com/story/markets/government-fears-commercial-real-estate-defaults-wsj/

Dunstan Prial
FOXBusiness

July pending home sales rise to 2-year high

2009-09-01T08:00:00.000-07:00

WASHINGTON - Pending U.S. home sales rose more than expected in July to the highest level in more than two years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

source: www.msnbc.com, associated press

http://www.msnbc.msn.com/id/32641606/ns/business-real_estate/

How Much Debt Is Too Much?

2009-08-31T08:04:00.000-07:00

Shouldn't borrow what you can't pay back--that's how we got into this whole economic mess in the first place. But figuring out how much debt you can take on--or, put another way, how much a lender is willing to extend (for they may not be the same thing)--is a bit tricky.

Source: Dileep Rao, Ph.D., 08.28.09, 04:56 PM EDT, forbes.com
http://www.forbes.com/2009/08/28/interest-coverage-ratios-entrepreneurs-finance-dileep.html

‘Troubled’ banks jumped to 416 from 305

2009-08-27T07:56:00.000-07:00

WASHINGTON - With bank failures rising, the government’s deposit insurance fund fell 20 percent to $10.4 billion in the second quarter as U.S. banks lost $3.7 billion.

Source: Associated Press

http://www.msnbc.msn.com/id/32580851/ns/business-stocks_and_economy/

Home sales, durable orders buoy recovery hopes

2009-08-26T11:29:00.000-07:00

By Lucia Mutikani
WASHINGTON (Reuters) - New U.S. home sales hit their highest level in 10 months in July and orders for long-lasting manufactured goods surged, fresh evidence a modest economic recovery was taking shape.http://www.reuters.com/article/newsOne/idUSN2625932720090826

Number of Homeowners Late in Paying or in Foreclosure Soars

2009-08-25T08:09:00.000-07:00

The number of Americans who are in serious delinquency on their mortgage rose to a record 9.24% last quarter, according to the Mortgage Bankers Association, as the increasing job losses and still-struggling economy forced more people out of their homes.
Meanwhile, the number of people who were in the foreclosure process rose to 4.3% from 3.85% from the previous quarter.

Source: Ken Sweet FOXBusiness

http://www.foxbusiness.com/story/markets/economy/update----homeowners-late-paying-foreclosure/

Consumer confidence rises above forecast in August

2009-08-25T07:51:00.000-07:00

NEW YORK (Reuters) - U.S. consumer confidence climbed more than expected in August on an improved outlook on the job market and the overall economy, according to a private report released on Tuesday.
The Conference Board, an industry group, said its index of consumer attitudes rose to 54.1 in August from an upwardly revised 47.4 percent in July. The July figure was originally reported at 46.6.

http://www.reuters.com/article/newsOne/idUSTRE57O3L120090825

Source: www.reuters.com

Fed Extends TALF through June 2010

2009-08-24T11:49:00.000-07:00

Appraiser News Online Headlines Last Updated: August 19, 2009 Vol. 10, No. 15/16

In hopes of promoting the flow of credit to businesses and households and to facilitate the financing of commercial properties, the Federal Reserve Board and the Treasury Department on Monday approved an extension of the Term Asset-Backed Loan Facility, or TALF, to keep the government-run program functional beyond its original Dec. 31, 2009, sunset date.

Under the joint Fed- and Treasury-approved extension, TALF loans for newly issued asset-backed securities and legacy commercial mortgage-backed securities has been authorized to run through March 31, 2010. In addition, TALF loans for newly issued CMBS, which can take a significant amount of time to arrange, have been extended to run through June 30, 2010.

According to a joint statement released by the Fed and Treasury, "Conditions in financial markets have improved considerably in recent months. Nonetheless, the markets for asset-backed securities backed by consumer and business loans and for commercial mortgage-backed securities are still impaired and seem likely to remain so for some time.”

As noted in a recent Washington Post story, it appears the Obama administration is not planning to put additional federal resources into the TALF program’s effort to boost the commercial sector, though many analysts believe that’s what is needed as a new wave of defaults on the horizon could impact the $814 billion in commercial real estate loans on pace to mature between now and 2011.

The Fed and Treasury, however, have not ruled out increasing TALF funding or extending the program further into the future. As the government agencies mentioned in their joint statement, “[We] are prepared to reconsider [our] decision if financial or economic developments indicate that providing TALF financing for investors' acquisitions of additional types of securities is warranted.”

For more information on the extension of TALF, visit http://www.federalreserve.gov/newsevents/press/monetary/20090817a.htm.

Source: http://www.appraisalinstitute.org

Pace of U.S. existing home sales fastest in 2 years

2009-08-24T11:37:00.000-07:00

By Lucia Mutikani

WASHINGTON (Reuters) - Sales of previously owned U.S. homes jumped 7.2 percent in July to mark the fastest pace in nearly two years, a survey showed on Friday, in a strong sign that housing is pulling out of a three-year slump.

Sales in July rose for the fourth straight month to hit an annual rate of 5.24 million units, the highest since August 2007, the National Association of Realtors said. The total beat market expectations of a 5 million unit pace and June's 4.89 million pace.

Read more at http://www.reuters.com/article/gc03/idUSTRE57K2NV20090821.

Real Estate Agent Admits Scheme

2008-03-26T14:46:00.002-07:00

Michael John Sorensen, Jr., 40, Anchorage, Alaska, pleaded guilty to wire fraud associated with kickbacks he received from home sales in Anchorage, Alaska.

In connection with the guilty plea, Assistant United States Attorney Retta Randall advised the court that Sorensen was a real estate agent licensed by the State of Alaska and an associate broker with ReMax Properties, Inc. Sorensen also owned a remodeling and construction company called Right Way Construction. Using Right Way Construction, Sorensen devised a scheme to obtain money by means of material false representations. The purpose of his scheme was to financially assist buyers and defraud various mortgage lenders by submitting false invoices from Right Way Construction to title companies, who then prepared false settlement statements which reflected payments for repairs and remodeling work which were never done to the properties. The false settlement statements were relied upon by the mortgage companies when they wired funds for the mortgage loans from outside the State of Alaska to title companies in Alaska who conducted the closing on each transaction. The amounts paid by the title companies to Right Way Construction pursuant to the false invoices were then given to the buyers by Sorensen after closing as a cash-back scheme without the knowledge of the mortgage lenders. Cash backs operate by falsely inflating the sales price of a property.

Read more at the Mortgage Fraud Blog.

California Mortgage Fraud Task Force Established

2008-03-26T14:46:00.001-07:00

In recent months, an Eastern District of California Mortgage Fraud Task Force has been established. This action was taken as a result of the significant increase in reported mortgage fraud as economic conditions and the housing market have worsened. Members of the task force include representatives from the U.S. Attorney’s Office, FBI, IRS-CI, the Department of Housing and Urban Development, the United States Bankruptcy Trustee’s Office, and the California Department of Real Estate.

”Mortgage fraud is a very real problem, both legally and economically. Federal law enforcement here in the Eastern District is fully committed to holding responsible those who in their greed have stolen from their fellow citizens. It is our duty to do all we can to restore faith and confidence in the marketplace by placing these thieves where they belong: in prison.” stated U.S. Attorney Scott.

Read more at the Mortgage Fraud Blog.

Operation Homewrecker Nets 19 Indictments

2008-03-25T14:44:00.000-07:00

19 individuals were indicted for mortgage fraud-related offenses under Operation Homewrecker. The leader of this nationwide scam is Charles Head, 33, Los Angeles, California, who targeted homeowners in dire financial straits, fraudulently obtaining title to over 100 homes and stole millions of dollars through fraudulently obtained loans and mortgages. Operation Homewrecker is the product of an extensive investigation by the FBI and IRS Criminal Investigation.

The charges are broken out into two separate indictments, “Head One” and “Head Two”. Head One involved a foreclosure rescue scam, netting approximately $6.7 million in fraudulently obtained funds taken from 47 homeowners, nearly all of whom were located in California. Head Two involved an equity stripping scheme, netting approximately $5.9 million in stolen equity from 68 homeowners in states across the nation. While still targeting distressed homeowners and defrauding mortgage lenders through the use of straw buyers, this time Charles Head altered the scheme so that he would receive approximately 97 percent of the stolen equity, while his sales agents and employees, and the other defendants, would receive either the remaining 3 percent of equity or a salary from the fraudulently-obtained funding.

Read more at the Mortgage Fraud Blog.