Archive for 'Home Sales'

Home Sales for Ultra Wealthy Picking Up Steam

The housing market has it’s ups and downs for all of us, even the ultra rich. With the high end market being flat about a year and a half ago,  it’s now on the uptrend and has been for over a year.  The super rich are now buying up these mega mansions for investment purposes and for other reasons as well.

A growing number of ultra high net worth (UHNW) individuals view homes as ‘opportunity gateways’, driving buying decisions that are based on potential opportunities from owning these luxury residential properties, according to the latest study by Wealth-X and the Sotheby’s International Realty® brand released today.

The UHNW Luxury Real Estate Report: Homes As Opportunity Gateways reveals two trends that are fueling the rise in the number of ultra wealthy individuals who are buying luxury homes:

(1)  International home-buying by UHNW individuals (defined as those with at least US$30 million in assets) from emerging nations seeking a safe investment diversification.
(2)  Home-buying as part of a program to gain citizenship or residency status in foreign nations.

The report provides insight into the UHNW residential real estate opportunities in Sydney and Vancouver for buyers seeking safe investment diversification; and Malta, the Bahamas and Sao Paulo, which may appeal to ultra wealthy buyers who are seeking citizenship or residency through property investment.

The UHNW Residential Real Estate index, tracked by Wealth-X, rose to 115.2 in Q2 2015, an 8.3% rise year-on-year, and the sixth consecutive quarter in which the index has risen. The continued rise in the index reflects the confidence of UHNW individuals to invest in luxury residential real estate.

The index takes into account the full range of luxury residential properties that are owned by the world’s wealthiest individuals. Wealth-X data shows there are 211,275 UHNW individuals globally, who collectively hold nearly US$3 trillion in real estate assets, equal to 10% of their net worth.

Below are other key findings from the report:

  • 12% of second homes purchased by UHNW individuals in emerging countries (those who reside in BRICS nations) are located outside their country of residence.
  • Recent market fluctuations in emerging nations are leading a new generation of UHNW investors to consider investing in luxury residential real estate in Western markets.
  • Chinese UHNW individuals make up the third largest share of foreign UHNW homeowners in the United States, behind only Canada and the United Kingdom.
  • Twenty nations in Europe and the Americas now offer citizenship or residency programs to individuals willing to invest in domestic residential real estate.
  • Many residential real estate markets with such programs – including Sao Paulo, Malta, and the Bahamas – offer good long-term investment opportunities.

Wealth-X President David Friedman commented: “Wealth-X is pleased to partner with the Sotheby’s International Realty brand for this third luxury real estate report for 2015. This new joint study explores the trends and home-buying motivations of a distinct group of ultra wealthy individuals in the emerging markets. As their wealth grows, so will their investment fueled by various motivations, be it to diversify their portfolio or to gain citizenship or residency in a foreign country.”

According to Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC, this joint report was designed to provide an understanding of the trends driving buying decisions of ultra high net worth individuals around the world. “The research reveals trends that go beyond traditional motivations and help guide real estate investments that contribute to long-term wealth,” he said.  “It underscores the important role real estate plays in a larger strategy to build a valuable asset portfolio.”

Download the report here.

About Wealth-X
Wealth-X is the global authority on wealth intelligence, providing sales, marketing, strategy and compliance solutions to clients in the financial services, luxury, not-for-profit and education sectors. Its award-winning research and thought leadership are regularly cited by the world’s media such as CNBC, Financial Times, Thomson Reuters and BBC. Wealth-X has more than 250 staff in 10 locations, including Singapore, London and New York. (www.wealthx.com)

About Sotheby’s International Realty Affiliates LLC
The Sotheby’s International Realty network currently has approximately 17,000 sales associates located in approximately 800 offices in 61 countries and territories worldwide. Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. Sotheby’s International Realty Affiliates LLC is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services.  In February 2004, Realogy entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house.  The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Each Office is Independently Owned and Operated. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744.

CONTACT: Wealth-X media contact: Fauzi Ahmad, +65 8653 6514, fahmad@wealthx.com; Sotheby’s International Realty Affiliates LLC media contact: Lindsey Scharf, +1 (973) 407-5596, lindsey.scharf@sothebysrealty.com

RELATED LINKS http://www.wealthx.com

SW Florida Home Sales Jump 20%

home for sale

SW Florida Home Sales Jump 20%-mage by haglundc via Flickr

Anybody that’s been looking at foreclosures in the SW Florida area knows that the market had pretty much dried up for several months. The Banks had been holding on to their inventory because of the Robo-signing fiasco, but that seems to have changed. Some parts of SW Florida have seen home sales increase by up to 20% but prices are down. Some are blaming the Banks for dumping more properties on the market which in turn is driving prices down. Of course, if you’re in the market for a house, lower prices are obviously a good thing.

Home sales in Southwest Florida jumped by double digits in October but pushed pricing to near its Great Recession low.

The renewed push by banks on foreclosures and their rising use of short sales could be undercutting prices.

After clearing up some of their mortgage paperwork, big lenders operating in the region have been ramping up again on distressed properties. Some have been offering clients cash for short sales on their homes, where the lender takes less than is owed on the mortgage.

Sales rose 20 percent in the Sarasota-Bradenton market during October when compared with a year ago, with 801 homes changing hands.

But the median sales price dropped to $137,100, pushing the value to only slightly above its lowest point since the recession, $136,300. The September median was $156,800, so the October price represented a 13 percent drop from the previous month.

Sales also rose in the Charlotte County-North Port market, by 7 percent to 236 homes, while the median price of $90,000 was a 6 percent drop from a year ago and an 8 percent drop from September.

Around the state, sales rose 13 percent in Florida’s combined 19 major markets, with 12,145 homes changing hands.

The median price statewide saw a drop but not as pronounced as in this region. October’s $131,200 was a 4 percent drop from a year ago and a 2 percent decline from September.

Source

If you’ve been sitting on the sidelines waiting for that good deal in Florida, now is probably the time to get out there and start making some offers. This could possibly be the bottom of the market and prices may not get any lower. Also, this is November and Winter is approaching quickly. They don’t call Florida the “Sunshine State” for nothing.

 

Mortgage Availability Remains a Real Concern: NAR

Mortgage Availability Remains a Real Concern: NAR

Mortgage Availability Remains a Real Concern: NAR-Image via Wikipedia

Realtors® stand ready to protect and defend opportunities for homeownership, and many of them have gathered here at the 2011 REALTORS® Conference & Expo to prepare for the challenges ahead.

During the opening session today at this week’s meetings, National Association of Realtors® President Ron Phipps outlined obstacles and opportunities facing the real estate industry.

“For the first time in generations, the American dream of homeownership is being threatened,” said Phipps, broker-president of Phipps Realty in Warwick, R.I. “We need to keep housing first on the nation’s public policy agenda, because housing and home ownership issues affect all Americans.”

NAR is actively advocating public policies that promote responsible, sustainable homeownership. Those include ensuring affordable, accessible financing; supporting tax policies that encourage homeownership; and helping more people stay in their homes or avoid foreclosure through streamlined short sales.

As Realtors® convene in California this week, conforming loan limits is one top-of-mind issue. On October 1, Congress allowed those limits to revert from 125 percent of the local area median home price to 115 percent of the local median home price. As a result, home buyers and sellers in 669 counties across 42 states and the District of Columbia have been affected. The lower limits mean that fewer people will have access to mortgage loans, and the loans that are available will be more expensive.

“Mortgage availability remains a real concern since the private market has yet to return,” said Phipps. “While the housing market is still in recovery, we firmly believe that lower loan limits will only further restrict liquidity in mortgage markets.”

NAR has urged Congress to reinstate the higher loan limits temporarily, and more than 200 members of Congress currently support efforts to reinstate these limits.

Session attendees also heard about the results of last month’s New Solutions for America’s Housing Crisis forum. The forum was hosted by the Progressive Policy Institute and Economic Policies for the 21st Century and brought together policy leaders, industry representatives, members of Congress, thought leaders and the media.

From this forum, NAR has endorsed a five-point housing solutions plan to help reenergize housing markets and spur the economic recovery.

“Many of the solutions that came out of this forum evolved from ideas that Realtors® have been advocating for several years,” said Phipps. “Realtors® and the families we work with, day in and day out, know that homeownership matters, and now, with our combined and continued efforts, we’re going to make sure that policymakers understand that, too.”

This year’s Realtors® Conference & Expo is expected to draw approximately 18,000 Realtors® and guests. More than 400 exhibitors are expected to participate in the Expo, which showcases the latest real estate products and innovations across various fields, including technology, data communications and financial programs and services.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today released its September Home Price Index (HPI®) which shows that home prices in the U.S. decreased 1.1 percent on a month-over-month basis, the second consecutive monthly decline. According to the CoreLogic HPI, national home prices, including distressed sales, also declined by 4.1 percent in September 2011 compared to September 2010.  This follows a decline of 4.4 percent* in August 2011 compared to August 2010.  Excluding distressed sales, year-over-year prices declined by 1.1 percent in September 2011 compared to September 2010 and by 2.2* percent in August 2011 compared to August 2010.  Distressed sales include short sales and real estate owned (REO) transactions.

“Even with low interest rates, demand for houses remains muted. Home sales are down in September and the inventory of homes for sale remains elevated. Home prices are adjusting to correct for the supply-demand imbalance and we expect declines to continue through the winter. Distressed sales remain a significant share of homes that do sell and are driving home prices overall,” said Mark Fleming, chief economist for CoreLogic.

Highlights as of September 2011

  • Including distressed sales, the five states with the highest appreciation were:  West Virginia (+7.0 percent), Wyoming (+3.8 percent), South Dakota (+3.6 percent), Maine (+3.5 percent), and North Dakota (+3.1 percent).
  • Including distressed sales, the five states with the greatest depreciation were: Nevada (-12.4 percent), Illinois (-9.2 percent), Arizona (-9.0 percent), Minnesota (-8.3 percent), and Georgia (-7.2 percent).
  • Excluding distressed sales, the five states with the highest appreciation were: West Virginia (+13.2 percent), Maine (+5.8 percent), Wyoming (+4.8 percent), Montana (+4.4 percent), and Kansas (+3.9 percent).
  • Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-9.6 percent), Arizona (-7.7 percent), Minnesota (-5.9 percent), Michigan (-4.8 percent), and Delaware (-3.7 percent).
  • Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to September 2011) was -31.2 percent.  Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -21.9 percent.
  • Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 82 are showing year-over-year declines in September, the same as in August.

Full-month September 2011 national, state-level and top CBSA-level data can be found at http://www.corelogic.com/HPISeptember2011.

*August data was revised.  Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

September HPI for the Country’s Largest Core Based Statistical Areas (CBSAs) by Population:

September 2011 12-Month HPI
CBSA Change by CBSA
Single Family Single Family  Excluding Distressed
Chicago-Joliet-Naperville, IL -9.7% -1.9%
Phoenix-Mesa-Glendale, AZ -8.0% -7.1%
Atlanta-Sandy Springs-Marietta, GA -7.8% -3.9%
Riverside-San Bernardino-Ontario, CA -6.3% -4.0%
Los Angeles-Long Beach-Glendale, CA -5.8% 0.2%
Houston-Sugar Land-Baytown, TX -4.3% 0.9%
Philadelphia, PA -0.3% -0.4%
Dallas-Plano-Irving, TX -0.1% 2.8%
Washington-Arlington-Alexandria, DC-VA-MD-WV 1.0% 2.3%
New York-White Plains-Wayne, NY-NJ 2.2% 2.9%

Source: CoreLogic.

September HPI State and National Ranking:

September 2011 12-Month HPI
State Change by State
Single Family Single Family

Excluding Distressed

National -4.1% -1.1%
Nevada -12.4% -9.6%
Illinois -9.2% -2.5%
Arizona -9.0% -7.7%
Minnesota -8.3% -5.9%
Georgia -7.2% -3.6%
California -6.5% -1.6%
Ohio -6.0% 0.0%
Delaware -5.8% -3.7%
Washington -5.6% -1.9%
Idaho -5.1% 0.0%
Wisconsin -4.7% -3.3%
New Mexico -4.7% -2.5%
Alabama -4.6% 2.4%
Missouri -4.4% -1.6%
Oregon -4.3% -3.3%
Utah -4.3% -0.8%
Florida -3.8% -1.7%
Michigan -3.7% -4.8%
Connecticut -3.5% -3.6%
New Hampshire -3.2% -1.1%
Rhode Island -2.7% -0.7%
Massachusetts -2.2% -1.6%
Hawaii -2.0% 0.9%
Arkansas -1.8% -1.0%
Kentucky -1.7% 0.2%
Maryland -1.6% 0.1%
Colorado -1.5% -0.2%
Texas -1.4% 1.6%
New Jersey -1.2% -1.5%
Indiana -0.7% 0.7%
Louisiana -0.6% 2.2%
Vermont -0.6% 3.1%
North Carolina -0.5% 0.4%
Iowa -0.4% 0.3%
Montana -0.3% 4.4%
Virginia -0.2% 0.7%
Oklahoma -0.2% 0.4%
Pennsylvania -0.1% 0.6%
Mississippi 0.0% 0.6%
South Carolina 0.6% 2.1%
Tennessee 0.7% 0.1%
Alaska 0.8% 1.4%
Kansas 1.2% 3.9%
Nebraska 1.2% 0.8%
District of Columbia 1.4% 0.3%
New York 2.4% 2.5%
North Dakota 3.1% 3.4%
Maine 3.5% 5.8%
South Dakota 3.6% 1.2%
Wyoming 3.8% 4.8%
West Virginia 7.0% 13.2%

Source: CoreLogic.

Methodology

The CoreLogic HPI incorporates more than 30 years’ worth of repeat sales transactions, representing more than 65 million observations sourced from CoreLogic industry-leading property information and its securities and servicing databases. The CoreLogic HPI provides a multi-tier market evaluation based on price, time between sales, property type, loan type (conforming vs. nonconforming), and distressed sales. The CoreLogic HPI is a repeat-sales index that tracks increases and decreases in sales prices for the same homes over time, which provides a more accurate “constant-quality” view of pricing trends than basing analysis on all home sales. The CoreLogic HPI provides the most comprehensive set of monthly home price indices and median sales prices available covering 6,607 ZIP codes (58 percent of total U.S. population), 608 Core Based Statistical Areas (86 percent of total U.S. population) and 1,146 counties (84 percent of total U.S. population) located in all 50 states and the District of Columbia.

About CoreLogic

CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The Company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built one of the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. The Company, headquartered in Santa Ana, Calif., has more than 5,000 employees globally. For more information visit www.corelogic.com.

Source:  CoreLogic

The data provided is for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic.  Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data.  If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or web site.  For questions, analysis or interpretation of the data, contact Lori Guyton at lguyton@cvic.com or Bill Campbell at bill@campbelllewis.com. Data provided may not be modified without the prior written permission of CoreLogic.  Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

CORELOGIC, the stylized CoreLogic logo and HPI are registered trademarks owned by CoreLogic, Inc. and/or its subsidiaries. No trademark of CoreLogic shall be used without the express written consent of CoreLogic.

CONTACT: For real estate industry and trade media: Bill Campbell, +1-212-995-8057 (office), +1-917-328-6539 (mobile), bill@campbelllewis.com; For general news media: Lori Guyton, +1-901-277-6066, lguyton@crosbyvolmer.com

Web Site: http://www.corelogic.com

Americans continue to be pessimistic about home prices, the economy, and personal finances, according to results from Fannie Mae’s October National Housing Survey.  Findings show that consumers have experienced stagnant incomes over the past year and do not expect their personal financial situations to improve over the next twelve months.

“The October survey showed that consumers’ outlook for the housing market has remained downbeat, as they expect home prices to decline over the next year, extending the streak of negative outlooks to five consecutive months,” said Doug Duncan, vice president and chief economist of Fannie Mae. “More positive economic headlines over the past month failed to lift consumers’ moods.  While their views regarding their personal finances and the direction of the economy have not deteriorated further, it is discouraging to see the lack of appreciable improvement after overall sentiment took a hit during the debt ceiling debate in August.”

“The fact that sentiment appears to be in a holding pattern at depressed levels is a cause for concern for the development of the housing market and for the economy as a whole, as there will be no meaningful economic recovery without a housing recovery,” Duncan stated.

SURVEY HIGHLIGHTS

The Economy and Household Finances

  • An all-time high of 46 percent of consumers expect their personal financial situation to stay the same over the next 12 months.
  • An all-time high of 65 percent of consumers say their income is about the same as it was 12 months ago.
  • Seventy-seven percent say the economy is off on the wrong track (unchanged since September), while just 16 percent think the economy is on the right track, also unchanged since September and tying the all-time low number.
  • Thirty-six percent report significantly higher expenses compared to 12 months ago, (down 7 percentage points since last month).

Homeownership and Renting

  • For the fifth month in a row, Americans expect home prices to decline over the next 12 months. On average, respondents expect home prices to decline by 0.3 percent.
  • Just 19 percent of respondents expect home prices to increase over the next 12 months (up 1 percentage point since last month), while 23 percent say they expect home prices to decline (down by 2 percentage points since last month). Fifty-five percent say prices will stay the same, tying the all-time high number set last month.
  • Thirty-six percent of Americans say that mortgage rates will go up over the next 12 months (up 3 percentage points since last month).
  • While 69 percent of respondents say it is a good time to buy a home (up by 1 percentage point since last month), just 10 percent say it is a good time to sell (unchanged since last month).
  • On average, Americans expect home rental prices to increase by 3.3 percent over the next 12 months, unchanged since last month.
  • Thirty-one percent of Americans say they would rent their next home, while 66 percent say they would buy, (up by 3 percentage points since last month).

The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,002 Americans via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.For detailed findings from the October 2011 survey, as well as technical notes on survey methodology and the questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site.  Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The October 2011 Fannie Mae National Housing Survey was conducted between October 3, 2011 and October 26, 2011. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

Follow us on Twitter: http://twitter.com/FannieMae .

CONTACT: Pete Bakel, +1-202-752-2034

Web Site: http://www.fanniemae.com

Google Enters the Mortgage Loan Business

Google Enters the Mortgage Loan Business

Google Enters the Mortgage Loan Business-Image by James Marvin Phelps via Flickr

LoanSifter, Inc. (www.LoanSifter.com), provider of the mortgage industry’s most complete and intuitive product and real-time pricing platform, announced today a strategic relationship with Google Inc. that gives consumers access to mortgage loan products and real-time pricing based on LoanSifter’s technology, including side-by-side comparisons of mortgage loan products from multiple lenders through Google’s Comparison Ads.

Google’s Comparison Ads help consumers shop for mortgages online by retrieving quotes based on the borrower’s specific loan criteria.  Through a strategic relationship between both companies, Google will leverage LoanSifter’s industry-leading technology – which automates pricing for lenders using the largest real-time database of investor pricing and eligibility content available in the mortgage industry — to provide Google users with information on mortgage products and pricing from the lenders using LoanSifter.  When Google users get these rates, LoanSifter’s lenders will receive qualified online leads.

Greg Ulrich, production manager at Fairway Independent Mortgage Corporation in Colleyville, Texas, believes that Google’s popularity provides a great opportunity as another channel for borrowers to reach the company, without substantial investment costs.  “This saves us money, allowing us to pass a greater savings to the consumer,” Ulrich said.

“We chose LoanSifter for our Google auto-quoting because it enables us to customize our pricing more accurately and effectively,” Ulrich added.  “Other vendors require manual supervision, which would have been problematic in keeping up with market shifts.”

Consumers who search for popular mortgage-related terms or phrases on Google are drawn to Google’s proprietary mortgage Comparison Ads, where they can anonymously provide details such as their desired loan amounts and credit scores.  Google will then retrieve multiple reliable offers from dependable lenders, placed side-by-side so the borrower can compare them.  After investigating different scenarios and choosing a lender, the borrower is then able to contact the lender by phone or e-mail.  Borrowers do not have to fill out lengthy forms or click through walls of advertisements in order to access up-to-the-minute loan products and rates, and the leads generated to lenders are anonymous, so that borrowers can protect their private information until they are ready to move forward in the mortgage process.

“Our relationship with Google will be of tremendous benefit to both lenders and consumers,” LoanSifter President Bruce Backer said.  “A growing number of borrowers are using the Internet to find the best possible mortgage deals, and Google’s immense popularity makes it a first stop for many.  Borrowers benefit from the side-by-side comparison in an open marketplace, while lenders benefit from LoanSifter’s ability to accurately price mortgage scenarios on their behalf.”

About LoanSifter

LoanSifter, Inc. provides the banking industry’s most comprehensive tools for mortgage bankers, loan officers and secondary departments to price, market and manage loans. The company’s flagship technology solution is an accurate, web-based product and pricing solution providing bankers with advanced tools to improve their service levels and increase profits. LoanSifter boasts the most comprehensive investor database in the industry with over 160 correspondent and wholesale investors. LoanSifter is also the leader in delivering point-of-sale (POS) and marketing tools to lenders and loan officers, including its eOriginations suite solution, offering highly customizable website utilities (automated consumer-facing pricing search), automated email campaigns, automated quoting for Zillow and LendingTree, scenario-specific rate monitoring alerts, and automated marketing materials. Founded in 2004, LoanSifter is headquartered in Appleton, Wisconsin.  For more information about LoanSifter, call 920.268.4770 or visit www.LoanSifter.com.

PRESS CONTACT:  
Warren Lutz
Strategic Vantage Marketing & Public Relations
(925) 270-3941
PR@StrategicVantage.com

Web Site: http://www.loansifter.com

Home Loan Originations Increase 22%

Home Loan Originations Increase 22%

Home Loan Originations Increase 22%-Image by Getty Images via @daylife

Strong refinance activity helped residential lenders lift third-quarter loan production, and the elevated originations have continued into the current quarter.

U.S. lenders originated around $354 billion in home loans during the third quarter based on an analysis by MortgageDaily.com. Business jumped roughly 22 percent from the second quarter’s revised $289 billion.

Behind the stellar performance was an increase in refinance volume as the 30-year mortgage fell from an average of 4.740 percent at the end of May to 4.351 percent at the end of August based on the U.S. Mortgage Market Index report from Mortech Inc. and MortgageDaily.com.

Driven by the Greek sovereign debt crisis and the Federal Reserve’s disclosure in September that it plans to extend the maturities of its Treasury investments and reinvest principal payments from agency debt and mortgage-backed securities investments into more agency MBS, mortgage rates have fallen even further. The improvement has kept refinance activity elevated and potentially could have fourth-quarter production even higher.

The Federal Housing Administration endorsed $49.7 billion in mortgages during the third quarter, leaving it with a market share of around 14 percent. FHA market share fell from a revised 18 percent in the second quarter.

Wells Fargo & Co. retained its No. 1 title during the third quarter. But Bank of America Corp. slipped to third place behind JPMorgan Chase & Co., and Ally Financial Inc. also moved down a notch.

Originations

Rank Q3 2011 Q2 2011 Q3 2010
1 Wells Wells Wells
2 Chase BofA BofA
3 BofA Chase Chase
4 Citi Ally Ally
5 Ally Citi Citi

 

Nearly half of all residential production was generated by the top four lenders.

Citigroup Inc., Quicken Loans Inc. and Flagstar Bancorp Inc. each increased volume by at least half compared to the second quarter. But BofA saw new business tumble 18 percent — the worst performance of the biggest lenders.

Compared to the third-quarter 2010, MetLife Home Loans turned in the strongest performance with an increase of 16 percent.

Mortgage Lender Ranking at:
http://www.MortgageDaily.com/MortgageLenderRanking.asp?spcode=pr

Mortgage origination news at:
http://www.mortgagedaily.com/Fundings.asp?spcode=pr

Quarterly mortgage production by the top lenders at:
http://www.mortgagedaily.com/FundingsConforming.asp?spcode=pr

About MortgageDaily.com
Founded in 1998, MortgageDaily.com is a dominant online source of mortgage news, statistics and analysis for the mortgage industry. Visit us online at www.MortgageDaily.com.

CONTACT:
Holly Himelright
NewsAlert@MortgageDaily.com
3811-700 Turtle Creek Blvd.
Dallas, TX 75219

Major Real Estate Investor Sets Sights on Texas

Major Real Estate Investor Sets Sights on Texas

Memphis Invest, GP has grown into the largest seller of private property, single family homes in West Tennessee and now has their sights on becoming a major player in the Dallas/Ft. Worth investment real estate market.

“We lived in the Dallas metro-plex for almost 30 years and still have major business and family ties to the area,” stated Kent Clothier when announcing the company’s decision to expand to a second market. Dallas was chosen due to the Clothier family’s familiarity with the area and the ability to quickly place the needed employees and partners into the market.

Memphis Invest has built a reputation as a national leader in providing passive real estate investors with the needed expertise and service to be comfortable investing in out-of-area markets. Having developed into the largest seller of single-family homes in West Tennessee, the Clothier family knew it was time to help their clients expand and diversify their portfolios.

“We have been looking at other markets for the last couple of years, but never really felt like the timing was right or the market was ready and now we know that Dallas is exactly where we need to expand,” said Brett Clothier, who along with Kent Clothier, Sr. will make the final call on all properties purchased. “We are sticking with a price point that provides ease of entry for both domestic and foreign buyers, but also provides a stable and consistent return to protect their investment.”

Memphis Invest plans to use their expertise and knowledge of the investment real estate market to help guide their existing leadership team as they develop the Dallas market and the new partnerships they have put in place. With one eye toward developing a second market and the other toward continuing to provide the outstanding service their clients have come to expect, the Clothiers are planning for a very good 2012 for them and their clients.

“We are not going into anything blind or quickly. We have been very deliberate in developing a plan for our clients. They have asked us many times to diversify into other markets and this is the first step in doing that for them,” stated Kent. “We have other plans we will announce soon and have plans to continue to grow beyond the 300 investment properties sold this year in Memphis. But we will always keep tight control over the quality of the investments and the customer service our clients receive. I think the real estate investors who trust us with their portfolios would expect nothing less.”

Memphis Invest, GP is the largest privately owned home seller in Memphis, Tennessee and provides real estate investors with a passive alternative to investing. For more information please visit the MemphisInvest.com website at http://www.memphisinvest.com or you can reach them at 1-877-773-9998.

CONTACT: Chris Clothier, +1-901-751-7191, chris@memphisinvest.com

Web Site: http://www.memphisinvest.com

Home Buyers Still in the Dark About Buying Process

Home Buyers Still in the Dark About Buying Process-Image by Getty Images via @daylife

Despite widespread volatility within the housing market and five consecutive years of home value declines, more than two in five (42 percent) of polled prospective home buyers believe home values typically appreciate by 7 percent a year, according to a recent survey by leading real estate information marketplace Zillow (NASDAQ: Z).

This is an unrealistic expectation as, historically, home values in a normal market tend to appreciate by 2-5 percent a year. (1)

Zillow, with Ipsos®, surveyed prospective home buyers (2), asking basic questions about the home buying process.

Despite the unrealistic expectations about home value appreciation, prospective home buyer respondents seem fairly knowledgeable about the home buying process, answering questions correctly more than half the time (65 percent). However, several important parts of the process confused them.  Two in five (41 percent) buyers think they are required to buy private mortgage insurance (PMI) regardless of the amount of their down payment.  In fact, lenders typically require PMI only when buyers are putting down less than 20 percent of the home’s purchase price.

Additionally, more than half of prospective home buyers who were polled confuse appraisals and inspections.  Fifty-six percent said the purpose of an appraisal was to determine if the home is in good condition, when in fact that is the purpose of an inspection.

“It’s troubling that we’re still in the midst of one of the worst housing recessions in history, and yet prospective buyers continue to have such high expectations for home value appreciation,” said Dr. Stan Humphries, chief economist at Zillow. “It’s great that buyers seem to have a fairly solid grasp of the home-buying process, but since this is one of the biggest financial decisions of most people’s lives, it’s even more important that they understand how that investment will appreciate after they sign the papers. Over-estimation of the appreciation potential will lead many to buy real estate when the time in which they plan to live in the house may make renting a better strategy.”

Additional Survey Findings

  • More than one-third (37 percent) of prospective home buyer respondents believe buying homeowner’s insurance is optional.  In reality, lenders require that borrowers purchase homeowner’s insurance. This insurance protects the lender. If catastrophe strikes, the mortgage will be repaid from the insurance proceeds.
  • Nearly half of polled prospective home buyers in the study do not understand when they will actually own the home they intend to buy. Forty-seven percent said a prospective buyer owns a home after the purchase contract is signed.  The purchase and sales agreement merely kicks off the closing phase, which can be a lengthy process.
  • The majority (87 percent) of polled prospective home buyers know that closing costs are negotiable and can vary by bank and lender. Lender fees, like loan-origination fees, administrative costs and other clerical fees, are typically the most negotiable in the home buying process.

 

Interactive Online Quiz and Resources Available

An online version of the Zillow survey, the “Buyer IQ Quiz,” is available at http://www.zillow.com/mortgage-rates/buyer-iq-quiz/ and contains the correct answers. Following the quiz, participants are given a score and resources to learn more about the home-buying process.

About Zillow, Inc.

Zillow (NASDAQ: Z) is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. More than 24 million unique users visited Zillow’s websites and mobile applications in September 2011. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Mobile and Postlets®. The company is headquartered in Seattle.

Zillow, Zillow.com and Postlets are registered trademarks of Zillow, Inc.

Ipsos is a registered trademark of Ipsos S.A.

(1)Over the period from 1890 to 2006, the average annual growth in home values was 3.7%.  Source: Irrational Exuberance by Robert Shiller (Princeton University Press 2000, Broadway Books 2001, 2nd edition, 2005)

(2) These are some of the findings of an Ipsos poll conducted August 31-September 1, 2011.  For the survey, a national sample of 1,012 adults aged 18 and over residing in the U.S. was interviewed via Ipsos’ U.S. online omnibus.  Among them, 177 reported that they plan to buy a home within the next 3 years, which qualifies them as “prospective home buyers.”  A survey with an unweighted probability sample of 1,012 and a 100% response rate would have an estimated margin of error of +/-3.1 percentage points 19 times out of 20, of what the results would have been had the entire population of adults in the U.S. been polled.  The margin of error for a subgrouping of the survey population of 177 individuals would be +/-7.4.  These data were weighted to ensure the sample’s regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau and to provide results intended to approximate the sample universe.  All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

CONTACT: Jill Simmons, Zillow.com, +1-206-757-2794, press@zillow.com

Web Site: http://www.Zillow.com

Secondary Mortgage Market Bill Supported by NAR

Secondary Mortgage Market Bill Supported by NAR

Secondary Mortgage Market Bill Supported by NAR-Image by Getty Images via @daylife

Owning a home has had long-standing government support in the U.S. because homeownership benefits individuals and families, strengthens communities, and is integral to the nation’s economy, the National Association of Realtors® said in testimony today.

NAR President-Elect Moe Veissi outlined the association’s recommendations for housing finance reform before the House Financial Services Subcommittee on International Monetary Policy and Trade.

“We must be better stewards of the U.S. housing finance system if it is to thrive and effectively serve American home buyers and mortgage investors into the future,” said Veissi, broker-owner of Veissi & Associates Inc., in Miami. “Repairs to our current housing finance structure must be made, but we must be careful that changes to the system do not come at the expense of homeownership opportunities for middle- and lower income Americans.”

Toward that end, NAR supports H.R. 2413, the “Secondary Market Facility for Residential Mortgage Act of 2011,” introduced by Reps. Gary Miller, R-Calif., and Carolyn McCarthy, D-N.Y.

“H.R. 2413 offers a comprehensive strategy for reforming the secondary mortgage market and gives the federal government a continued role to ensure a consistent flow of mortgage credit in all markets and all economic conditions,” said Veissi. “Moreover, it supports the use of long-term fixed-rate mortgage products.”

Veissi testified that full privatization of the secondary mortgage market would all but eliminate products like the 30-year fixed-rate mortgage and that mortgage interest rates would be unnecessarily higher and unaffordable for many Americans, shutting otherwise qualified buyers out of the market.

“The 30-year fixed-rate mortgage is the bedrock of the U.S housing finance system, and without government support, there’s no evidence that this type of mortgage would continue to exist,” said Veissi. “Private firms’ business strategies would focus on optimizing their profits, creating mortgage products that are more aligned with the goals of their business than in the best interests of the nation’s housing policy or consumers.”

Veissi said that while the size of the government’s participation in housing finance should decrease if private capital is to return to the market and function properly, the federal government must have a continued role in the secondary mortgage market to avoid losing long-term, fixed-rate mortgage products and keep borrowing costs affordable for consumers.

“Continuing government participation in the secondary mortgage market is critical to ensuring that qualified home buyers can obtain safe and sound mortgage financing products even during market downturns, when private entities have historically pulled back,” Veissi said.

Recent reductions to the conforming loan limits by the federal government are already having an impact on mortgage liquidity according to early data from an NAR survey, which found that consumers who are now above the new lower conventional conforming loan limit are experiencing significantly higher interest rates and the need for substantially larger down payments.

Veissi said that the housing and economic recoveries have been slow and that activities that force economic activity to be constricted further should be resisted.

“For hundreds of years, this country has understood the value of homeownership because it helps families build wealth, supports community stability and contributes to our economy. We need to make sure that future housing policies continue to reinforce our long-standing value of homeownership, for the future of our families and our country,” said Veissi.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

 Page 1 of 10  1  2  3  4  5 » ...  Last »