Mortgage Bankers Association - "Mortgage Applications Decrease In Latest MBA Weekly Survey" (4-30-08)
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 25, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 567.0, a decrease of 11.1 percent on a seasonally adjusted basis from 637.6 one week earlier. On an unadjusted basis, the Index decreased 10.2 percent compared with the previous week and was down 14.2 percent compared with the same week one year earlier."
Bloomberg - "Citigroup Increases Stock Offering to $4.5 Billion" (4-30-08)
"Citigroup Inc., under pressure to bolster capital depleted by mounting losses, sold $4.5 billion of stock, 50 percent more than it planned. Citigroup fell as much as 4 percent in New York trading after the biggest U.S. bank said in a statement that it priced 178.1 million shares at $25.27 each, a discount to yesterday's closing price of $26.32. The sale represents about 3 percent of the bank's shares outstanding as of March 31."
The San Diego Union Tribune - "Housing prices off 19.2% in S.D. area" (4-30-08)
"The Standard & Poor's/Case-Shiller home-price index for February, which was released yesterday, showed San Diego County prices down 19.2 percent from February 2007. San Diego, which ranked fifth out of 20 markets surveyed, trailed Las Vegas, which was down 22.8 percent; Miami, down 21.7 percent; Phoenix, down 20.8 percent; and Los Angeles, down 19.4 percent over the same period."
CNBC - "FDIC Finalizing Direct Home Loan Plans: WSJ" (4-30-08)
"Federal Deposit Insurance Corp Chairman Sheila Bair is finalizing a legislative proposal that will let the Treasury Department issue direct loans for nearly 1 million homeowners, in a move to prop up the housing market, the Wall Street Journal said on Wednesday. The plan, which needs Congress approval, would permit new government loans so borrowers can repay up to 20 percent of the principal they owe on their mortgage, the report said, citing confidential draft of the proposal."
Bloomberg - "Jones Lang Declines After Earnings Miss Analysts' Estimates" (4-30-08)
"Jones Lang LaSalle Inc., the second-largest commercial property broker, fell as much as 10 percent in New York trading after earnings missed analysts' estimates. First-quarter net income declined to $2.8 million, or 9 cents a share, the Chicago-based company said yesterday in a statement after the regular trading. Analysts on average projected net income of 69 cents a share."
Orange County Register - "Building slump zaps drywall prices 36%" (4-30-08)
"Sheetrock-brand wallboard maker USG says its average North America selling price for its signature product was $104.41 per thousand square feet in the first quarter, down 36% from $164.12 in the year ago period."
Orange County Register - "O.C. mortgage debt slipped in 2007" (4-30-08)
"TransUnion, one of the big three credit-reporting agencies, said the average mortgage debt in Orange County dropped at the end of 2007 for the first time in two years. The average consumer mortgage debt of $410,093 in the fourth quarter of 2007 was down 3.4 percent from the prior quarter, the first time it dropped quarter-to-quarter since the end of 2005 (back then it was a meager 0.5 percent dip.)"
Orange County Register - "Industrial property still hot in O.C." (4-30-08)
"Grubb & Ellis says the place to be in O.C. real estate during the first quarter was in warehouses and other industrial space. Industrial vacancies here remained tight at 4.3% during the first quarter, just slightly above the 4% in the fourth quarter of 2007. That compares to the office market, which saw the vacancy rate jump to 14.9%."
Wall Street Journal - "Room to Rise? In Hotels, Operators Have an Edge Over Owners" (4-30-08)
"For investors trying to determine which hotel companies are best positioned to ride out a downturn, economic and construction data don't tell the whole story. The industry has evolved over the past decade into two groups. One is composed of companies that manage and operate hotels, such as InterContinental Hotels Group PLC, Starwood Hotels & Resorts Worldwide Inc., and Wyndham Hotels & Resorts LLC, a unit of Wyndham Worldwide Corp. The other group is composed of real-estate investment trusts that build, buy and own hotel properties; most REITs aren't household names."
Wall Street Journal - "Wells Fargo Is Sanctioned For Role in Mortgage Woes" (4-30-08)
"a federal bankruptcy judge has penalized a trustee, San Francisco-based Wells Fargo & Co., imposing a $250,000 sanction against it. The judge last week said Wells Fargo failed to monitor a mortgage-servicing company that the court found took improper actions in a consumer-bankruptcy case and made misrepresentations to the court."
Wednesday, April 30, 2008
Tuesday, April 29, 2008
Yahoo - "Home prices sink at record clip; foreclosures keep mounting" (4-29-08)
"In a bad omen for sellers and lenders this spring home selling season, the erosion of house values is accelerating and foreclosure filings are doubling, new data showed Tuesday. A closely watched index of home prices in 20 cities fell almost 13 percent in February from a year earlier, a record for the seven-year-old S&P's/Case-Shiller Home Price index. The report follows news that foreclosure filings between January and March also hit a new high, and comes a day after the government said the number of vacant homes on the market also hit a record."
"About half of recent subprime and Alt-A borrowers may soon owe more on their mortgages than their houses are worth or hold minimal equity, putting $800 billion of debt at greater risk of default, according to Barclays Capital. Subprime loans from 2006 and 2007 that exceed the value of the homes jumped 5 percentage points to 19.8 percent in the fourth quarter, and may reach 26 percent by midyear if prices drop at the same pace, Barclays analysts wrote in a report yesterday. Alt-A loans, a grade better than subprime, would grow to 23 percent from 16.3 percent."Gov. Arnold Schwarzenegger said yesterday that the state budget is “$20 billion out of whack,” a startling figure that doubles some previous estimates. A shortfall of that size in a projected general fund of $101 billion would create more pressure for deep cuts and tax increases to balance a budget for the fiscal year that begins July 1."
Market Watch - "Countrywide posts $893 million first-quarter loss" (4-29-08)
"Troubled mortgage lender Countrywide Financial Corp. continued to hemorrhage money in a toughening housing climate, reporting Tuesday that it lost $893 million in the first quarter compared to a profit of $434 million during the same period last year."
Yahoo - "Homes facing foreclosure more than doubled in 1Q from 2007" (4-29-08)
"The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday."
Realty Times - "Real Estate Marketing Strategies - Getting Your Clients to Buy Now!" (4-29-08)
"Have you been feeling frustrated at clients who don't seem to be able to make a decision? At the beginning they seem interested in buying, either they've contacted you or you contacted them. Then as they see some homes may begin listening to the news about today's marketplace, they start to get cold feet."
Realty Times - "Mortgage Fraud Now An Organized Crime Staple" (4-29-08)
"Fraud associated with home loans first cashed in on the greed that came with the previously booming housing market, when some buyers would do anything to own a home. The cons used falsified applications, inflated appraisals and other techniques to get home loans approved on the home buying end."
Realty Times - "Condo Trends: The Good, The Bad, The Ugly of Condo Fees" (4-29-08)
"The problem with condo fees, is that the monthly expense is rolled into your debt-to-income-ratio by mortgage lenders and can affect your buying power. For instance, if you have a condo fee of $300 per month, your purchasing power could drop by $50,000 if you were buying a home with a 6 percent mortgage on a 30-year note."
Orange County Register - "Closing HELOCs could bite banks, report says" (4-29-08)
"KBW said there’s an additional $1.2 trillion in outstanding debt on credit lines and home-equity loans. To put the numbers in perspective, the total of $2.2 trillion (used and unused HELOCs and home-equity loans) equates to 20 percent of outstanding first-mortgage debt and roughly 85 percent of outstanding non-mortgage consumer debt ($2.5 trillion), the report found."
"In a bad omen for sellers and lenders this spring home selling season, the erosion of house values is accelerating and foreclosure filings are doubling, new data showed Tuesday. A closely watched index of home prices in 20 cities fell almost 13 percent in February from a year earlier, a record for the seven-year-old S&P's/Case-Shiller Home Price index. The report follows news that foreclosure filings between January and March also hit a new high, and comes a day after the government said the number of vacant homes on the market also hit a record."
Bloomberg - "Bonds, Stocks Show Bernanke Fixing Financial System" (4-29-08)
"Federal Reserve Chairman Ben S. Bernanke is persuading investors that the financial markets are working again. The Standard & Poor's 500 Index gained 7.88 percent since the central bank backed the purchase of Bear Stearns Cos. on March 16. Companies sold $45.3 billion of debt last week, the most ever. High-yield bonds are poised for their best month in five years and mortgage securities are outperforming Treasuries for the first time in 2008."
Bloomberg - "More Subprime, Alt-A Mortgages May Head `Underwater'" (4-29-08)"About half of recent subprime and Alt-A borrowers may soon owe more on their mortgages than their houses are worth or hold minimal equity, putting $800 billion of debt at greater risk of default, according to Barclays Capital. Subprime loans from 2006 and 2007 that exceed the value of the homes jumped 5 percentage points to 19.8 percent in the fourth quarter, and may reach 26 percent by midyear if prices drop at the same pace, Barclays analysts wrote in a report yesterday. Alt-A loans, a grade better than subprime, would grow to 23 percent from 16.3 percent."
Forbes - "Worst Cities For Homeowner Debt" (4-29-08)
This article contains a chart listing information like the median home price and the total mortgages of each city
The San Diego Union Tribune - "State budget '$20 billion out of whack'" (4-29-08)
"Market Watch - "Countrywide posts $893 million first-quarter loss" (4-29-08)
"Troubled mortgage lender Countrywide Financial Corp. continued to hemorrhage money in a toughening housing climate, reporting Tuesday that it lost $893 million in the first quarter compared to a profit of $434 million during the same period last year."
Yahoo - "Homes facing foreclosure more than doubled in 1Q from 2007" (4-29-08)
"The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday."
Realty Times - "Real Estate Marketing Strategies - Getting Your Clients to Buy Now!" (4-29-08)
"Have you been feeling frustrated at clients who don't seem to be able to make a decision? At the beginning they seem interested in buying, either they've contacted you or you contacted them. Then as they see some homes may begin listening to the news about today's marketplace, they start to get cold feet."
Realty Times - "Mortgage Fraud Now An Organized Crime Staple" (4-29-08)
"Fraud associated with home loans first cashed in on the greed that came with the previously booming housing market, when some buyers would do anything to own a home. The cons used falsified applications, inflated appraisals and other techniques to get home loans approved on the home buying end."
Realty Times - "Condo Trends: The Good, The Bad, The Ugly of Condo Fees" (4-29-08)
"The problem with condo fees, is that the monthly expense is rolled into your debt-to-income-ratio by mortgage lenders and can affect your buying power. For instance, if you have a condo fee of $300 per month, your purchasing power could drop by $50,000 if you were buying a home with a 6 percent mortgage on a 30-year note."
Orange County Register - "Closing HELOCs could bite banks, report says" (4-29-08)
"KBW said there’s an additional $1.2 trillion in outstanding debt on credit lines and home-equity loans. To put the numbers in perspective, the total of $2.2 trillion (used and unused HELOCs and home-equity loans) equates to 20 percent of outstanding first-mortgage debt and roughly 85 percent of outstanding non-mortgage consumer debt ($2.5 trillion), the report found."
Monday, April 28, 2008
Bloomberg - "Dollar Slide Drives Budget as Japan Shuns Treasuries" (4-28-08)
"The Japanese, who own $586.6 billion, or 12 percent of U.S. government debt, had their worst quarter in Treasuries this decade, losing 7 percent in the first three months of the year as the dollar fell to the lowest since 1995 versus the yen, Merrill Lynch & Co. indexes show. Dai-ichi Mutual Life Insurance Co., Meiji Yasuda Life Insurance Co. and Sumitomo Life Insurance Co., three of the nation's four-biggest insurers, would rather accept the world's lowest bond yields in Japan than buy U.S. debt."
Yahoo - "Vacant homes set new record high in first quarter" (4-28-08)
"The percentage of vacant homes for sale in the U.S. set a new record high in the first quarter of this year, the government said Monday. The Census Bureau report shows that 2.9 percent of U.S. homes -- excluding rental properties -- were vacant and up for sale, compared with 2.8 percent in the fourth quarter of 2007. It was the highest quarterly number in records going back to 1956."
Bloomberg - "KB Home's Broad Says Home Prices May Drop Another 20%" (4-28-08)
"Eli Broad, a philanthropist and co- founder of KB Home, the fifth-largest U.S. homebuilder by revenue, said he expects home prices to drop another 20 percent."
Bloomberg - "Maguire Chairman Proposes to Purchase 75% of Company" (4-28-08)
"Maguire offered $21 per share, or 23 percent more than the closing price of $17.07 on April 25, for 75 percent of the company. He is proposing the company sell most of its assets outside Orange County and pay investors a special dividend funded by the proceeds, Maguire Properties said in a statement today. Maguire fell 45 cents, or 2.6 percent, to $16.62 at 4:01 p.m. in New York Stock Exchange composite trading."
Bloomberg - "Zell Says Macklowe Will Get $6 Billion for New York Buildings" (4-28-08)
"Harry Macklowe should raise about $6 billion from the sale of seven New York office towers that he bought for $7 billion from Blackstone Group LP last year, according to Sam Zell, the real estate investor who sold the properties to Blackstone."
Realty Times - "Washington Report: Fannie and Freddie Under Fire From Groups" (4-28-08)
"Private mortgage insurers -- who work hand in hand with Fannie and Freddie by writing coverage on loans with downpayments less than 20 percent -- are enforcing even more extensive and restrictive lists of declining markets. Some industry estimates put the total number of Zip codes affected across the country at between 8,000 and 12,000."
"The Japanese, who own $586.6 billion, or 12 percent of U.S. government debt, had their worst quarter in Treasuries this decade, losing 7 percent in the first three months of the year as the dollar fell to the lowest since 1995 versus the yen, Merrill Lynch & Co. indexes show. Dai-ichi Mutual Life Insurance Co., Meiji Yasuda Life Insurance Co. and Sumitomo Life Insurance Co., three of the nation's four-biggest insurers, would rather accept the world's lowest bond yields in Japan than buy U.S. debt."
Yahoo - "Vacant homes set new record high in first quarter" (4-28-08)
"The percentage of vacant homes for sale in the U.S. set a new record high in the first quarter of this year, the government said Monday. The Census Bureau report shows that 2.9 percent of U.S. homes -- excluding rental properties -- were vacant and up for sale, compared with 2.8 percent in the fourth quarter of 2007. It was the highest quarterly number in records going back to 1956."
Bloomberg - "KB Home's Broad Says Home Prices May Drop Another 20%" (4-28-08)
"Eli Broad, a philanthropist and co- founder of KB Home, the fifth-largest U.S. homebuilder by revenue, said he expects home prices to drop another 20 percent."
Bloomberg - "Maguire Chairman Proposes to Purchase 75% of Company" (4-28-08)
"Maguire offered $21 per share, or 23 percent more than the closing price of $17.07 on April 25, for 75 percent of the company. He is proposing the company sell most of its assets outside Orange County and pay investors a special dividend funded by the proceeds, Maguire Properties said in a statement today. Maguire fell 45 cents, or 2.6 percent, to $16.62 at 4:01 p.m. in New York Stock Exchange composite trading."
Bloomberg - "Zell Says Macklowe Will Get $6 Billion for New York Buildings" (4-28-08)
"Harry Macklowe should raise about $6 billion from the sale of seven New York office towers that he bought for $7 billion from Blackstone Group LP last year, according to Sam Zell, the real estate investor who sold the properties to Blackstone."
Realty Times - "Washington Report: Fannie and Freddie Under Fire From Groups" (4-28-08)
"Private mortgage insurers -- who work hand in hand with Fannie and Freddie by writing coverage on loans with downpayments less than 20 percent -- are enforcing even more extensive and restrictive lists of declining markets. Some industry estimates put the total number of Zip codes affected across the country at between 8,000 and 12,000."
Ventura County Star - "Home quality dropping with prices" (4-26-08)
"Stoked by a rash of short sales and other distressed transactions, inventory of homes on the market has swelled as demand has sagged. Quality also has become an issue as strapped homeowners seemed to have lost that 'pride of ownership.'Properties foreclosed on within the past year accounted for 35.2 percent of the existing homes sold in Ventura County during March, according to DataQuick Information Systems."
The San Diego Union Tribune - "Resales of homes a house divided" (4-27-08)
"San Diego County's unprecedented housing downturn has created a sharp split in the resale market, with foreclosed properties selling at steep discounts while other homes take a much smaller hit. Although values are down in all categories, the variance between the resale prices of foreclosed and regular properties is dramatic."
Orange County Register - "O.C. building slump hits non-home projects, too" (4-27-08)
"Construction Industry Research Board, Burbank-based group tracking building permits statewide, says planned construction in Orange County of commercial, industrial and other non-residential projects in O.C. fell to the lowest level in six years.That’s one reason why the estimated value of all building permits combined (see chart above) was $663 million for January through March this year, or a little more than half the value of permits issued during the first three months of 2007. Last year’s value was the high for the decade, with permits valued at nearly $1.3 billion in the first quarter."
The San Diego Union Tribune - "'Declining market' tag may threaten recovery" (4-27-08)
"Could widespread designations of entire ZIP codes, metropolitan areas – even entire states – as 'declining markets' hinder a real estate recovery and hurt minority groups and moderate-income buyers disproportionately? Growing ranks of critics say the answer is yes. Since late 2007, most lenders, insurers and mortgage investment firms have compiled lists of local markets that they consider to be posing higher risks because housing values are dropping. Within those areas, borrowers are charged higher rates, loan fees and down payments – costs that can rise significantly when applicants have credit scores below designated minimum levels."
"Stoked by a rash of short sales and other distressed transactions, inventory of homes on the market has swelled as demand has sagged. Quality also has become an issue as strapped homeowners seemed to have lost that 'pride of ownership.'Properties foreclosed on within the past year accounted for 35.2 percent of the existing homes sold in Ventura County during March, according to DataQuick Information Systems."
The San Diego Union Tribune - "Resales of homes a house divided" (4-27-08)
"San Diego County's unprecedented housing downturn has created a sharp split in the resale market, with foreclosed properties selling at steep discounts while other homes take a much smaller hit. Although values are down in all categories, the variance between the resale prices of foreclosed and regular properties is dramatic."
Orange County Register - "O.C. building slump hits non-home projects, too" (4-27-08)
"Construction Industry Research Board, Burbank-based group tracking building permits statewide, says planned construction in Orange County of commercial, industrial and other non-residential projects in O.C. fell to the lowest level in six years.That’s one reason why the estimated value of all building permits combined (see chart above) was $663 million for January through March this year, or a little more than half the value of permits issued during the first three months of 2007. Last year’s value was the high for the decade, with permits valued at nearly $1.3 billion in the first quarter."
The San Diego Union Tribune - "'Declining market' tag may threaten recovery" (4-27-08)
"
Friday, April 25, 2008
CBIA - "New-Home Production Down Again in March, CBIA Announces" (4-25-08)
"According to housing permit data supplied by the Construction Industry Research Board, total housing starts in California, as measured by building permits issued, dropped 65 percent in March when compared to the same month a year ago to 4,713 units. Production of single-family homes fell 63 percent while construction of multifamily units decreased 68 percent when compared to March of 2007."
CAR - "C.A.R. reports sales decreased 24.5 percent, median home price fell 29 percent in March" (4-25-08)
"Home sales decreased 24.5 percent in March in California compared with the same period a year ago, while the median price of an existing home fell 29 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today."
Bloomberg - "Homeowners Convert to Costlier Fixed-Rate Loans Amid ARM Fears" (4-25-08)
"Mortgage refinancing in the U.S. is increasing as record numbers of homeowners dump their adjustable-rate mortgages for the security of a fixed loan. The amount of refinanced home loans will reach $321 billion by the end of June, the most in a year, according to estimates from Washington-based Fannie Mae, the largest buyer of mortgages. Nine out of 10 of those borrowers will choose a fixed rate, Fannie Mae said."
Yahoo - "Many states appear to be in recession as deficits grow" (4-25-08)
"The finances of many states have deteriorated so badly that they appear to be in a recession, regardless of whether that's true for the nation as a whole, a survey of all 50 state fiscal directors concludes."
Bloomberg - "Loan Derivatives Index Soars as Banks Find Takers for LBO Debt" (4-25-08)
"A gauge of investor confidence in the U.S. leveraged-loan market is headed for its biggest monthly increase since being created last year as banks find ways to sell loans they have been stuck with the past 10 months."
Bloomberg - "Steel Says Premature to Call U.S. Credit Crisis Over" (4-25-08)
"Treasury Undersecretary Robert Steel said it's premature to say that financial market turmoil stemming from tightening credit conditions is near an end."
Orange County Register - "O.C. builder defaults on $235 million debt" (4-25-08)
"An Irvine developer defaulted on a $235 million loan borrowed against Bakersfield’s planned McAllister Ranch golf course community, chalking up what’s probably Kern’s largest soured debt so far in the current market downturn. A default notice recorded Tuesday in Kern County shows SunCal Cos., the company behind the 6,000-home project, owes late payments totaling more than $4 million to lender Lehman Commercial Paper Inc., a New Jersey-based financial company."
Orange County Register - "Subprime fraud rampant at end of housing boom" (4-25-08)
"The State Foreclosure Prevention Working Group came to this conclusion after noticing a 'worsening trend' of subprime loans going into delinquency prior to an increase in monthly payments due to the end of a low introductory teaser rate. For example, in the group’s first report based on data from Oct. 2007 it found the percentage of loans facing reset in Q3 2009 that are currently delinquent was 21.4%. That figure increased to 28.5%, based on more recent data from January 2008."
Realty Times - "Inflation Jitters Push Mortgage Rates Up This Week" (4-25-08)
"Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.03 percent with an average 0.3 point for the week ending April 24, 2008, up from last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.16 percent."
The Wall Street Journal - "Rising Property Taxes Fill Gaps, Pinch Homeowners" (4-25-08)
"Faced with revenue shortfalls, local governments across the U.S. are raising property-tax rates, angering homeowners already hit by the housing slump and economic slowdown. Spring Valley, N.Y., approved a 9.7% increase in the property-tax rate to balance its budget. A number of fast-growing suburbs around Washington, D.C., have raised rates, while Memphis Mayor Willie Herenton has proposed a 17% increase in the property-tax rate to close a budget gap."
"According to housing permit data supplied by the Construction Industry Research Board, total housing starts in California, as measured by building permits issued, dropped 65 percent in March when compared to the same month a year ago to 4,713 units. Production of single-family homes fell 63 percent while construction of multifamily units decreased 68 percent when compared to March of 2007."
CAR - "C.A.R. reports sales decreased 24.5 percent, median home price fell 29 percent in March" (4-25-08)
"Home sales decreased 24.5 percent in March in California compared with the same period a year ago, while the median price of an existing home fell 29 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today."
Bloomberg - "Homeowners Convert to Costlier Fixed-Rate Loans Amid ARM Fears" (4-25-08)
"Mortgage refinancing in the U.S. is increasing as record numbers of homeowners dump their adjustable-rate mortgages for the security of a fixed loan. The amount of refinanced home loans will reach $321 billion by the end of June, the most in a year, according to estimates from Washington-based Fannie Mae, the largest buyer of mortgages. Nine out of 10 of those borrowers will choose a fixed rate, Fannie Mae said."
Yahoo - "Many states appear to be in recession as deficits grow" (4-25-08)
"The finances of many states have deteriorated so badly that they appear to be in a recession, regardless of whether that's true for the nation as a whole, a survey of all 50 state fiscal directors concludes."
Bloomberg - "Loan Derivatives Index Soars as Banks Find Takers for LBO Debt" (4-25-08)
"A gauge of investor confidence in the U.S. leveraged-loan market is headed for its biggest monthly increase since being created last year as banks find ways to sell loans they have been stuck with the past 10 months."
Bloomberg - "Steel Says Premature to Call U.S. Credit Crisis Over" (4-25-08)
"Treasury Undersecretary Robert Steel said it's premature to say that financial market turmoil stemming from tightening credit conditions is near an end."
Orange County Register - "O.C. builder defaults on $235 million debt" (4-25-08)
"An Irvine developer defaulted on a $235 million loan borrowed against Bakersfield’s planned McAllister Ranch golf course community, chalking up what’s probably Kern’s largest soured debt so far in the current market downturn. A default notice recorded Tuesday in Kern County shows SunCal Cos., the company behind the 6,000-home project, owes late payments totaling more than $4 million to lender Lehman Commercial Paper Inc., a New Jersey-based financial company."
Orange County Register - "Subprime fraud rampant at end of housing boom" (4-25-08)
"The State Foreclosure Prevention Working Group came to this conclusion after noticing a 'worsening trend' of subprime loans going into delinquency prior to an increase in monthly payments due to the end of a low introductory teaser rate. For example, in the group’s first report based on data from Oct. 2007 it found the percentage of loans facing reset in Q3 2009 that are currently delinquent was 21.4%. That figure increased to 28.5%, based on more recent data from January 2008."
Realty Times - "Inflation Jitters Push Mortgage Rates Up This Week" (4-25-08)
"Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.03 percent with an average 0.3 point for the week ending April 24, 2008, up from last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.16 percent."
The Wall Street Journal - "Rising Property Taxes Fill Gaps, Pinch Homeowners" (4-25-08)
"Faced with revenue shortfalls, local governments across the U.S. are raising property-tax rates, angering homeowners already hit by the housing slump and economic slowdown. Spring Valley, N.Y., approved a 9.7% increase in the property-tax rate to balance its budget. A number of fast-growing suburbs around Washington, D.C., have raised rates, while Memphis Mayor Willie Herenton has proposed a 17% increase in the property-tax rate to close a budget gap."
Thursday, April 24, 2008
NAHB - "Builders Lead The Way In Energy Efficient Housing, Congress Told" (4-24-08)
"Calling green building 'the next evolution in residential construction,' the National Association of Home Builders (NAHB) told Congress today that the best way to help small home builders promote residential energy efficiency and sustainability technology in home construction is by extending tax incentives for new energy-efficient homes."
Market Watch - "New-home sales sink 8.5% to 17-year low" (4-24-08)
"The decline in new-home sales to a seasonally adjusted annual rate of 526,000 was much weaker than the 577,000 pace expected by economists surveyed by MarketWatch. New-home sales are down 36.6% compared with a year ago and are down 62% from the peak in July 2005. February's sales pace was revised lower to 575,000 from 590,000"
CNN - "Homebuilders: No recovery until 2009" (4-24-08)
"The damaged housing and home construction markets will continue to take a beating at least through the end of the year, according to economists who spoke Thursday at a forecast conference sponsored by the National Association of Home Builders. The economists said the deterioration of the housing market helped the U.S. economy slip into a recession that will continue through June. They said high oil prices will continue to hamper consumer spending, and the ongoing credit crisis will make home financing difficult, stalling a housing recovery until at least 2009."
CNN - "Rates on 30-year mortgages top 6%" (4-24-08)
"Rates on 30-year mortgages topped 6% for the first time in six weeks as financial markets grew more worried about rising inflation pressures. Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.03% this week after three straight weeks at 5.88%. Rates on 30-year mortgages were last above 6% the week of March 16 when they averaged 6.13%."
Realty Times - "Real Estate Outlook: Index Says Positive Growth Underway" (4-24-08)
"You might not hear much about them on TV or in the papers, but there are some economic signs popping up right now that are -- at the VERY least -- encouraging for housing and real estate."
Realty Times - "Regional Report: West" (4-24-08)
"HousingPredictor.com's list of the 25 worst housing markets in 2008 is dominated by California, who has 8 cities in the list. Of the remaining 17 cities, 4 are from other western states like Arizona and Oregon. Our agents in some western cities don't necessarily echo these dire reports about the overall market."
Realty Times - "Tax Rebate Uses For Sellers" (4-24-08)
"Starting in May, the U.S. Treasury Department will begin sending rebates to taxpayers, who had $3,000 of income, filed a 2007 tax return and have a valid Social Security number. Eligible taxpayers will receive up to $600 ($1,200 for married couples). Parents will receive an additional $300 for each eligible child younger than 17."
Realty Times - "Is the Single Member LLC a New IRS Target?" (4-24-08)
"A little known Court Case has just sent ripples through the business community. If you, or someone you know, has one of the 1.2 million Limited Liability Companies in the US today, you'll want to read this alert."
"Calling green building 'the next evolution in residential construction,' the National Association of Home Builders (NAHB) told Congress today that the best way to help small home builders promote residential energy efficiency and sustainability technology in home construction is by extending tax incentives for new energy-efficient homes."
Market Watch - "New-home sales sink 8.5% to 17-year low" (4-24-08)
"The decline in new-home sales to a seasonally adjusted annual rate of 526,000 was much weaker than the 577,000 pace expected by economists surveyed by MarketWatch. New-home sales are down 36.6% compared with a year ago and are down 62% from the peak in July 2005. February's sales pace was revised lower to 575,000 from 590,000"
CNN - "Homebuilders: No recovery until 2009" (4-24-08)
"The damaged housing and home construction markets will continue to take a beating at least through the end of the year, according to economists who spoke Thursday at a forecast conference sponsored by the National Association of Home Builders. The economists said the deterioration of the housing market helped the U.S. economy slip into a recession that will continue through June. They said high oil prices will continue to hamper consumer spending, and the ongoing credit crisis will make home financing difficult, stalling a housing recovery until at least 2009."
CNN - "Rates on 30-year mortgages top 6%" (4-24-08)
"Rates on 30-year mortgages topped 6% for the first time in six weeks as financial markets grew more worried about rising inflation pressures. Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.03% this week after three straight weeks at 5.88%. Rates on 30-year mortgages were last above 6% the week of March 16 when they averaged 6.13%."
Realty Times - "Real Estate Outlook: Index Says Positive Growth Underway" (4-24-08)
"You might not hear much about them on TV or in the papers, but there are some economic signs popping up right now that are -- at the VERY least -- encouraging for housing and real estate."
Realty Times - "Regional Report: West" (4-24-08)
"HousingPredictor.com's list of the 25 worst housing markets in 2008 is dominated by California, who has 8 cities in the list. Of the remaining 17 cities, 4 are from other western states like Arizona and Oregon. Our agents in some western cities don't necessarily echo these dire reports about the overall market."
Realty Times - "Tax Rebate Uses For Sellers" (4-24-08)
"Starting in May, the U.S. Treasury Department will begin sending rebates to taxpayers, who had $3,000 of income, filed a 2007 tax return and have a valid Social Security number. Eligible taxpayers will receive up to $600 ($1,200 for married couples). Parents will receive an additional $300 for each eligible child younger than 17."
Realty Times - "Is the Single Member LLC a New IRS Target?" (4-24-08)
"A little known Court Case has just sent ripples through the business community. If you, or someone you know, has one of the 1.2 million Limited Liability Companies in the US today, you'll want to read this alert."
Wednesday, April 23, 2008
Mortgage Bankers Application - "Mortgage Applications Decrease In Latest MBA Weekly Survey" (4-23-08)
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 18, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 637.6, a decrease of 14.2 percent on a seasonally adjusted basis from 743.4 one week earlier. On an unadjusted basis, the Index decreased 13.4 percent compared with the previous week and was down 3.2 percent compared with the same week one year earlier."
USA Today - "Renters can't escape housing foreclosure crisis" (4-23-08)
"The most brutal real estate slump in decades is reverberating through the rental market. Renters in properties that are being foreclosed on are being evicted. Homeowners forced into foreclosure are becoming tenants again and driving up rents. And renters not yet ready to buy a home — shut out by stricter lending rules or hoping to buy after prices fall still further — are creating a dynamic shift: Even as real estate is sputtering, the rental market is surging."
Bloomberg - "Ambac Posts Loss on CDO Writedown, New Business Drop" (4-23-08)
"Ambac Financial Group Inc., the bond insurer that lost 93 percent of its stock market value in the past year, posted a wider loss than analysts estimated after $3.1 billion in charges for subprime-mortgage securities. The world's second-largest bond insurer tumbled 43 percent in New York Stock Exchange trading after reporting a first- quarter net loss of $1.66 billion, or $11.69 a share. The company also revised claims estimates higher by $2 billion and said it may be in violation of at least one loan covenant."
Bloomberg - "Credit Suisse May Post Quarterly Loss on SF5 Billion Writedown" (4-23-08)
"The world's biggest banks and securities firms have reported credit losses and writedowns of $290 billion since the start of 2007 following the collapse of the U.S. subprime mortgage market."
The Washington - "Lenders Swamped by Delinquent Mortgages" (4-23-08)
"Seven out of 10 troubled mortgage borrowers remain without a plan to work out their loans despite increased industry efforts to help them, according to a new report from a coalition of state attorneys general and banking regulators. The group collected data from 13 of the largest subprime lenders from October through January and found that the lenders are overwhelmed by their workloads and unable to keep pace with the number of borrowers who are falling behind on payments."
The Washington Post - "Effort to Rein In Fannie, Freddie Gains Steam" (4-23-08)
"Treasury Department officials have stepped up efforts to strengthen the regulation of Fannie Mae and Freddie Mac, the two largest buyers of home mortgages, pressing key senators to break a legislative stalemate that has lasted for years. The recent turmoil in credit markets has refocused attention on Fannie Mae and Freddie Mac, which play a vital role in supporting the U.S. mortgage market. About 80 percent of all home loans are now bought by these two federally chartered companies, according to Freddie Mac."
Bloomberg - "Morgan Stanley Raises $2.5 Billion for Real Estate" (4-23-08)
"Morgan Stanley, seeking profits amid the decline in real estate values, raised an additional $2.5 billion for a global property fund that will invest part of its assets in U.S. mortgage debt. About half of the new money in the Special Situations Fund III will be spent in the U.S., Spain and the U.K., as well as other developed markets in Europe and Asia, said John Carrafiell, joint global head of real estate investing for Morgan Stanley. The rest will be invested in emerging markets."
Bloomberg - "Kimball Hill, U.S. Homebuilder, Files for Bankruptcy" (4-23-08)
"Kimball Hill Inc., a closely held homebuilder active in five U.S. states and 29 affiliates, filed for Chapter 11 bankruptcy protection as demand for new homes tumbles. The Rolling Meadows, Illinois-based company listed assets of $795.5 million and debt of $631.9 million as of Dec. 31 in documents filed today in U.S. Bankruptcy Court in Chicago. Kimball Hill sells houses in California, Illinois, Florida, Texas and Las Vegas."
Bloomberg - "Pulte Loss Widens to $696.1 Million in Housing Slump" (4-23-08)
"Pulte Homes Inc., the fourth-largest U.S. homebuilder, reported a $696.1 million first-quarter net loss, about three times wider than analysts expected, as stricter mortgage-lending standards cut demand. The net loss swelled to $2.75 a share, from $85.7 million, or 34 cents, a year earlier, the Bloomfield Hills, Michigan-based company said today in a statement. Pulte's sixth consecutive quarterly loss included $663.6 million of expenses to write down the value of land. Revenue declined 23 percent to $1.45 billion."
Bloomberg - "GE Real Estate Buys EU1.27 Billion of Property Loans" (4-23-08)
"General Electric Co. bought 1.27 billion euros ($2.03 billion) worth of commercial-property loans in Europe, the U.S. firm's second acquisition of such loans in five months. The 39 loans were bought from closely held Capmark Financial Group Inc. at a discount, Michael Rowan, GE's head of real estate in the U.K., said in an interview today. Most of the loans are backed by properties in Germany, according to Rowan, who declined to disclose the purchase price."
Bloomberg - "U.S. Architects' Services Index Falls to Record as Demand Slows" (4-23-08)
"Slowing demand for U.S. architectural services last month drove down a billings index to a record, as developers cut back plans for commercial construction this year, the American Institute of Architects said. The Architecture Billings Index dropped to 39.7 last month from 41.8 in February, the Washington-based institute said today in a statement. The score was the lowest since the survey's inception in November 1995. Any score below 50 indicates a decrease in billings from the previous month."
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 18, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 637.6, a decrease of 14.2 percent on a seasonally adjusted basis from 743.4 one week earlier. On an unadjusted basis, the Index decreased 13.4 percent compared with the previous week and was down 3.2 percent compared with the same week one year earlier."
USA Today - "Renters can't escape housing foreclosure crisis" (4-23-08)
"The most brutal real estate slump in decades is reverberating through the rental market. Renters in properties that are being foreclosed on are being evicted. Homeowners forced into foreclosure are becoming tenants again and driving up rents. And renters not yet ready to buy a home — shut out by stricter lending rules or hoping to buy after prices fall still further — are creating a dynamic shift: Even as real estate is sputtering, the rental market is surging."
Bloomberg - "Ambac Posts Loss on CDO Writedown, New Business Drop" (4-23-08)
"Ambac Financial Group Inc., the bond insurer that lost 93 percent of its stock market value in the past year, posted a wider loss than analysts estimated after $3.1 billion in charges for subprime-mortgage securities. The world's second-largest bond insurer tumbled 43 percent in New York Stock Exchange trading after reporting a first- quarter net loss of $1.66 billion, or $11.69 a share. The company also revised claims estimates higher by $2 billion and said it may be in violation of at least one loan covenant."
Bloomberg - "Credit Suisse May Post Quarterly Loss on SF5 Billion Writedown" (4-23-08)
"The world's biggest banks and securities firms have reported credit losses and writedowns of $290 billion since the start of 2007 following the collapse of the U.S. subprime mortgage market."
The Washington - "Lenders Swamped by Delinquent Mortgages" (4-23-08)
"Seven out of 10 troubled mortgage borrowers remain without a plan to work out their loans despite increased industry efforts to help them, according to a new report from a coalition of state attorneys general and banking regulators. The group collected data from 13 of the largest subprime lenders from October through January and found that the lenders are overwhelmed by their workloads and unable to keep pace with the number of borrowers who are falling behind on payments."
The Washington Post - "Effort to Rein In Fannie, Freddie Gains Steam" (4-23-08)
"Treasury Department officials have stepped up efforts to strengthen the regulation of Fannie Mae and Freddie Mac, the two largest buyers of home mortgages, pressing key senators to break a legislative stalemate that has lasted for years. The recent turmoil in credit markets has refocused attention on Fannie Mae and Freddie Mac, which play a vital role in supporting the U.S. mortgage market. About 80 percent of all home loans are now bought by these two federally chartered companies, according to Freddie Mac."
Bloomberg - "Morgan Stanley Raises $2.5 Billion for Real Estate" (4-23-08)
"Morgan Stanley, seeking profits amid the decline in real estate values, raised an additional $2.5 billion for a global property fund that will invest part of its assets in U.S. mortgage debt. About half of the new money in the Special Situations Fund III will be spent in the U.S., Spain and the U.K., as well as other developed markets in Europe and Asia, said John Carrafiell, joint global head of real estate investing for Morgan Stanley. The rest will be invested in emerging markets."
Bloomberg - "Kimball Hill, U.S. Homebuilder, Files for Bankruptcy" (4-23-08)
"Kimball Hill Inc., a closely held homebuilder active in five U.S. states and 29 affiliates, filed for Chapter 11 bankruptcy protection as demand for new homes tumbles. The Rolling Meadows, Illinois-based company listed assets of $795.5 million and debt of $631.9 million as of Dec. 31 in documents filed today in U.S. Bankruptcy Court in Chicago. Kimball Hill sells houses in California, Illinois, Florida, Texas and Las Vegas."
Bloomberg - "Pulte Loss Widens to $696.1 Million in Housing Slump" (4-23-08)
"Pulte Homes Inc., the fourth-largest U.S. homebuilder, reported a $696.1 million first-quarter net loss, about three times wider than analysts expected, as stricter mortgage-lending standards cut demand. The net loss swelled to $2.75 a share, from $85.7 million, or 34 cents, a year earlier, the Bloomfield Hills, Michigan-based company said today in a statement. Pulte's sixth consecutive quarterly loss included $663.6 million of expenses to write down the value of land. Revenue declined 23 percent to $1.45 billion."
Bloomberg - "GE Real Estate Buys EU1.27 Billion of Property Loans" (4-23-08)
"General Electric Co. bought 1.27 billion euros ($2.03 billion) worth of commercial-property loans in Europe, the U.S. firm's second acquisition of such loans in five months. The 39 loans were bought from closely held Capmark Financial Group Inc. at a discount, Michael Rowan, GE's head of real estate in the U.K., said in an interview today. Most of the loans are backed by properties in Germany, according to Rowan, who declined to disclose the purchase price."
Bloomberg - "U.S. Architects' Services Index Falls to Record as Demand Slows" (4-23-08)
"Slowing demand for U.S. architectural services last month drove down a billings index to a record, as developers cut back plans for commercial construction this year, the American Institute of Architects said. The Architecture Billings Index dropped to 39.7 last month from 41.8 in February, the Washington-based institute said today in a statement. The score was the lowest since the survey's inception in November 1995. Any score below 50 indicates a decrease in billings from the previous month."
Tuesday, April 22, 2008
NAR - "Existing-Home Sales Slip in March" (4-22-08)
"Existing-home sales – including single-family, townhomes, condominiums and co-ops – were down 2.0 percent to a seasonally adjusted annual rate (1) of 4.93 million units in March from a level of 5.03 million in February, and remain 19.3 percent below the 6.11 million-unit pace in March 2007. A rise in condo sales in March was offset by a drop in single-family sales. Regionally, sales rose in the Northeast and West but fell in the Midwest and South."
DQNews - "Another Jump in California Foreclosure Activity" (4-22-08)
"The number of California homes going into foreclosure jumped last quarter to its highest level in more than 15 years, as the market continued to works its way through declining home values and a pool of at-risk mortgages that were originated in 2005 and 2006, a real estate information service reported. Lending institutions sent homeowners 113,676 default notices during the January-to-March period. That was up by 39.4 percent from 81,550 the previous quarter, and up 143.1 percent from 46,760 for first-quarter 2007, according to DataQuick Information Systems."
The San Diego Union Tribune - "Banks report more disheartening results" (4-22-08)
"Nine months after the crisis in the American mortgage market began to tear through the financial world, the cost to banks, in terms of their own sinking investments, is approaching $300 billion. To shore up their weakened finances, one bank after another is racing to raise capital – a total of $160 billion so far. The pain is far from over. Even the most optimistic forecasters say banks will suffer billions of dollars in additional write-downs on mortgage investments and other debt in the months ahead. The final figure for the banks' write-downs could eventually exceed $750 billion – twice some early estimates – if the economy sinks into a prolonged recession, some analysts say."
Bloomberg - "Bobbleheads Get Cynical in Lawsuits Over Muni Swaps" (4-22-08)
"Several state and local bond issuers are suing their dealers and underwriters in class-action lawsuits piggybacking on the Securities and Exchange Commission's investigation into bid- rigging in the municipal market. The lawsuits, which began sprouting in March and now number at least four, don't say anything new. They resemble the various news stories that have appeared on the subject in recent years, almost all of which were based upon Internal Revenue Service letters to issuers. These were usually revealed only as part of 'material-event notices' that issuers have to send out if the IRS comes calling."
CNN - "Many problems with mortgage bailouts" (4-22-08)
"Congress appears eager to help more than a million homeowners facing foreclosure, but a proposal aimed at fixing the battered housing market could instead end up as the latest blow to a recovery. An ambitious plan proposed by Rep. Barney Frank and Sen. Chris Dodd calls for up to $300 billion in loan guarantees from the Federal Housing Administration to refinance loans that homeowners can't afford as long as the original lender reduces the principal on the loan to 85% of the home's current market value."
Orange County Register - "Downey’s problematic assets increase by $521 million in Q1" (4-22-08)
"Downey Financial continues to see loans go sour even as it refinances some folks out of loans that allow them to defer interest and principal payments to the future. Its total nonperforming assets rose by $521 million in the first quarter to $1.562 billion and represented 11.9% of total assets, vs. 0.9% a year ago."
Orange County Register - "Calif. home prices down 22.48%, nation’s worst" (4-22-08)
"First American LoanPerformance says California home prices were falling at a 22.48% annual pace in late March, again, worst in the nation. Next in this dubious line was Florida (-17.41%), then Nevada (-16.67%), Arizona (-16.32%), and Ohio (-10.78%.) California has been at the bottom of this national ranking since May."
"Existing-home sales – including single-family, townhomes, condominiums and co-ops – were down 2.0 percent to a seasonally adjusted annual rate (1) of 4.93 million units in March from a level of 5.03 million in February, and remain 19.3 percent below the 6.11 million-unit pace in March 2007. A rise in condo sales in March was offset by a drop in single-family sales. Regionally, sales rose in the Northeast and West but fell in the Midwest and South."
DQNews - "Another Jump in California Foreclosure Activity" (4-22-08)
"The number of California homes going into foreclosure jumped last quarter to its highest level in more than 15 years, as the market continued to works its way through declining home values and a pool of at-risk mortgages that were originated in 2005 and 2006, a real estate information service reported. Lending institutions sent homeowners 113,676 default notices during the January-to-March period. That was up by 39.4 percent from 81,550 the previous quarter, and up 143.1 percent from 46,760 for first-quarter 2007, according to DataQuick Information Systems."
The San Diego Union Tribune - "Banks report more disheartening results" (4-22-08)
"Nine months after the crisis in the American mortgage market began to tear through the financial world, the cost to banks, in terms of their own sinking investments, is approaching $300 billion. To shore up their weakened finances, one bank after another is racing to raise capital – a total of $160 billion so far. The pain is far from over. Even the most optimistic forecasters say banks will suffer billions of dollars in additional write-downs on mortgage investments and other debt in the months ahead. The final figure for the banks' write-downs could eventually exceed $750 billion – twice some early estimates – if the economy sinks into a prolonged recession, some analysts say."
Bloomberg - "Bobbleheads Get Cynical in Lawsuits Over Muni Swaps" (4-22-08)
"Several state and local bond issuers are suing their dealers and underwriters in class-action lawsuits piggybacking on the Securities and Exchange Commission's investigation into bid- rigging in the municipal market. The lawsuits, which began sprouting in March and now number at least four, don't say anything new. They resemble the various news stories that have appeared on the subject in recent years, almost all of which were based upon Internal Revenue Service letters to issuers. These were usually revealed only as part of 'material-event notices' that issuers have to send out if the IRS comes calling."
CNN - "Many problems with mortgage bailouts" (4-22-08)
"Congress appears eager to help more than a million homeowners facing foreclosure, but a proposal aimed at fixing the battered housing market could instead end up as the latest blow to a recovery. An ambitious plan proposed by Rep. Barney Frank and Sen. Chris Dodd calls for up to $300 billion in loan guarantees from the Federal Housing Administration to refinance loans that homeowners can't afford as long as the original lender reduces the principal on the loan to 85% of the home's current market value."
Orange County Register - "Downey’s problematic assets increase by $521 million in Q1" (4-22-08)
"Downey Financial continues to see loans go sour even as it refinances some folks out of loans that allow them to defer interest and principal payments to the future. Its total nonperforming assets rose by $521 million in the first quarter to $1.562 billion and represented 11.9% of total assets, vs. 0.9% a year ago."
Orange County Register - "Calif. home prices down 22.48%, nation’s worst" (4-22-08)
"First American LoanPerformance says California home prices were falling at a 22.48% annual pace in late March, again, worst in the nation. Next in this dubious line was Florida (-17.41%), then Nevada (-16.67%), Arizona (-16.32%), and Ohio (-10.78%.) California has been at the bottom of this national ranking since May."
Monday, April 21, 2008
Bloomberg - "Citigroup Plans to Sell $6 Billion of Hybrid Bonds" (4-21-08)
"Citigroup Inc., after posting almost $16 billion in writedowns, is bolstering capital by selling $6 billion of preferred shares in its biggest public debt offering. The perpetual hybrid bonds may pay 8.4 percent for 10 years, according to a person who declined to be named because terms aren't set."
Bloomberg - "National City May Get $7 Billion to Replenish Capital" (4-21-08)
"National City Corp., Ohio's biggest bank and subprime lender, may get $6 billion to $7 billion from a group led by Corsair Capital LLC to bolster its balance sheet, said a person with knowledge of the situation. The investors will pay $5 a share, said the person, who didn't want to be identified before a possible announcement later today. National City slid 8.4 percent to $7.65 in premarket trading today at 8:35 a.m. in New York."
Bloomberg - "Bank of America Net Income Falls 77% on Writedowns" (4-21-08)
"Bank of America Corp., the second- largest U.S. bank, said profit dropped for a third straight quarter as the company set aside $6.01 billion for bad loans. First-quarter net income declined 77 percent to $1.21 billion from $5.26 billion a year earlier, the Charlotte, North Carolina-based bank said today in a statement. The results fell short of analysts' estimates and sent the bank's stock down 2.5 percent in New York trading."
MSN - "Average Joe still can't afford a home" (4-21-08)
"Comparing housing costs in 210 metropolitan areas with the wages earned by workers in 60 occupations, the study found that homeownership is often unaffordable for workers in each of the five-fastest growing occupations -- registered nurses, retail salespeople, customer-service representatives, food-preparation workers and office clerks. Registered nurses, who typically have high salaries, were unable to purchase a median-priced home in 108 of the markets."
The Washington Post - "Housing Sense in Congress?" (4-21-08)
"Presidential candidates insist that Washington needs fixing, and we in the commentariat love to expose hypocrisy, pork-barreling and gridlock. So it feels awkward to admit the truth about the subprime meltdown. First Congress produced a timely and well-crafted stimulus. Now it is working on proposals to help homeowners, and with one ugly exception, the recommendations are sound."
CNN - "The trillion-dollar mortgage time bomb" (4-21-08)
"Among the nightmares lurking around the corner for the already battered housing and credit markets would be a meltdown at mortgage financing giants Fannie Mae and Freddie Mac. Although few are predicting an imminent need for a bailout just yet, credit rating agency Standard & Poor's recently placed an estimated price tag on this worst case scenario -- $420 billion to $1.1 trillion of taxpayer's money."
CNN - "When a HELOC freezes over" (4-21-08)
"As of September, delinquencies on HELOCs were up 47% year over year, according to Economy.com; the numbers are expected to be worse in 2008. In response, Countrywide has already suspended an estimated 122,000 lines, many in high-foreclosure-rate states, and USAA has frozen or reduced some 15,000 accounts.Bank of America, Chase and Citibank, among others, are following suit."
CNN - "Waiting for a subprime perp walk" (4-21-08)
"Admit it. you want to see some justice handed out on Wall Street. Thanks to the Great Mortgage Panic of 2008, your home value is tumbling, credit is harder to get and the job market may turn a lot tougher. And let's not even talk about your 401(k) balance. It's natural to be angry when forces beyond your control mess with your life. So we're looking for villains. Some people - especially Wall Street people - blame feckless, house-hungry borrowers. Then there were regulators who didn't bother to regulate. But the heart of the matter is that Wall Street went nuts. Again."
Orange County Register - "Downey reports $248 million loss, says reduced pay-option loans" (4-21-08)
"Downey Financial in Newport Beach reported Monday a first-quarter loss of $248 million, vs. a profit of $43 million a year ago. It’s suspending its dividend to shore up capital amid soft housing and credit markets."
Orange County Register - "Realtors volunteer as foreclosure counselors" (4-21-08)
"The Orange County Association of Realtors donated $20,000 to support foreclosure counseling by the Fair Housing Council of Orange County, the council announced last week. In addition, more than 50 real estate agents have been trained as volunteers to support the foreclosure counseling process and about 100 volunteers more are expected to be trained, said Connie Der Torossian, the council’s vice president of marketing and outreach."
"Citigroup Inc., after posting almost $16 billion in writedowns, is bolstering capital by selling $6 billion of preferred shares in its biggest public debt offering. The perpetual hybrid bonds may pay 8.4 percent for 10 years, according to a person who declined to be named because terms aren't set."
Bloomberg - "National City May Get $7 Billion to Replenish Capital" (4-21-08)
"National City Corp., Ohio's biggest bank and subprime lender, may get $6 billion to $7 billion from a group led by Corsair Capital LLC to bolster its balance sheet, said a person with knowledge of the situation. The investors will pay $5 a share, said the person, who didn't want to be identified before a possible announcement later today. National City slid 8.4 percent to $7.65 in premarket trading today at 8:35 a.m. in New York."
Bloomberg - "Bank of America Net Income Falls 77% on Writedowns" (4-21-08)
"Bank of America Corp., the second- largest U.S. bank, said profit dropped for a third straight quarter as the company set aside $6.01 billion for bad loans. First-quarter net income declined 77 percent to $1.21 billion from $5.26 billion a year earlier, the Charlotte, North Carolina-based bank said today in a statement. The results fell short of analysts' estimates and sent the bank's stock down 2.5 percent in New York trading."
MSN - "Average Joe still can't afford a home" (4-21-08)
"Comparing housing costs in 210 metropolitan areas with the wages earned by workers in 60 occupations, the study found that homeownership is often unaffordable for workers in each of the five-fastest growing occupations -- registered nurses, retail salespeople, customer-service representatives, food-preparation workers and office clerks. Registered nurses, who typically have high salaries, were unable to purchase a median-priced home in 108 of the markets."
The Washington Post - "Housing Sense in Congress?" (4-21-08)
"Presidential candidates insist that Washington needs fixing, and we in the commentariat love to expose hypocrisy, pork-barreling and gridlock. So it feels awkward to admit the truth about the subprime meltdown. First Congress produced a timely and well-crafted stimulus. Now it is working on proposals to help homeowners, and with one ugly exception, the recommendations are sound."
CNN - "The trillion-dollar mortgage time bomb" (4-21-08)
"Among the nightmares lurking around the corner for the already battered housing and credit markets would be a meltdown at mortgage financing giants Fannie Mae and Freddie Mac. Although few are predicting an imminent need for a bailout just yet, credit rating agency Standard & Poor's recently placed an estimated price tag on this worst case scenario -- $420 billion to $1.1 trillion of taxpayer's money."
CNN - "When a HELOC freezes over" (4-21-08)
"As of September, delinquencies on HELOCs were up 47% year over year, according to Economy.com; the numbers are expected to be worse in 2008. In response, Countrywide has already suspended an estimated 122,000 lines, many in high-foreclosure-rate states, and USAA has frozen or reduced some 15,000 accounts.Bank of America, Chase and Citibank, among others, are following suit."
CNN - "Waiting for a subprime perp walk" (4-21-08)
"Admit it. you want to see some justice handed out on Wall Street. Thanks to the Great Mortgage Panic of 2008, your home value is tumbling, credit is harder to get and the job market may turn a lot tougher. And let's not even talk about your 401(k) balance. It's natural to be angry when forces beyond your control mess with your life. So we're looking for villains. Some people - especially Wall Street people - blame feckless, house-hungry borrowers. Then there were regulators who didn't bother to regulate. But the heart of the matter is that Wall Street went nuts. Again."
Orange County Register - "Downey reports $248 million loss, says reduced pay-option loans" (4-21-08)
"Downey Financial in Newport Beach reported Monday a first-quarter loss of $248 million, vs. a profit of $43 million a year ago. It’s suspending its dividend to shore up capital amid soft housing and credit markets."
Orange County Register - "Realtors volunteer as foreclosure counselors" (4-21-08)
"The Orange County Association of Realtors donated $20,000 to support foreclosure counseling by the Fair Housing Council of Orange County, the council announced last week. In addition, more than 50 real estate agents have been trained as volunteers to support the foreclosure counseling process and about 100 volunteers more are expected to be trained, said Connie Der Torossian, the council’s vice president of marketing and outreach."
Los Angeles Times - "How troubled borrowers can try for a mortgage write-down" (4-20-08)
"For you to get the same deal -- to get your lender to write down the value of the loan by 20% to 25% -- the lender must be shown that taking such a cut is the only logical choice. You want to show that if you fail, the loan's owner will be getting back a house that is worth less than it has invested in it."
Los Angeles Times - "The muted market" (4-20-08)
"Twenty-three families checked out the bedrooms (small), dining room (large) and kitchen (upgraded) during the four-hour open house on a recent cool, cloudy Sunday. Three expressed interest in buying the three-bedroom 'character home,' as Coldwell Banker agent Denise Barnes described the 1,364-square-foot 1922 California bungalow, reduced to $605,000 from $645,000. But most said they were waiting for prices to drop further."
"For you to get the same deal -- to get your lender to write down the value of the loan by 20% to 25% -- the lender must be shown that taking such a cut is the only logical choice. You want to show that if you fail, the loan's owner will be getting back a house that is worth less than it has invested in it."
Los Angeles Times - "The muted market" (4-20-08)
"Twenty-three families checked out the bedrooms (small), dining room (large) and kitchen (upgraded) during the four-hour open house on a recent cool, cloudy Sunday. Three expressed interest in buying the three-bedroom 'character home,' as Coldwell Banker agent Denise Barnes described the 1,364-square-foot 1922 California bungalow, reduced to $605,000 from $645,000. But most said they were waiting for prices to drop further."
The San Diego Union Tribune - "Silver lining in the midst of more bad housing news" (4-19-08)
"Buried beneath all the sour news of rising foreclosures and declining prices last week was a bit of good news for the San Diego County housing market: Prices have finally fallen low enough to achieve some semblance of affordability for potential home buyers. With the median price down to $385,000 – roughly the same as in summer 2003 – much of the frothiness of the Great San Diego Housing Bubble has melted away."
Option ARMageddon - "Bring back the Gold Standard?" (4-19-08)
"It's time to confront currency disorder. Our goal should be to put forward a new proposal for international monetary relations on the scale of the 1944 Bretton Woods agreement, invoking the same sentiments that inspired architects John Maynard Keynes and Harry Dexter White to provide a foundation of hope for a world all too prone to violence. A global system based on a universally-accepted monetary asset -- the U.S. has the world's highest level of official gold reserves, followed by Germany and France -- would not only counter Russia's offensive. It would convert a national security threat into a golden opportunity."
"
Option ARMageddon - "Bring back the Gold Standard?" (4-19-08)
"It's time to confront currency disorder. Our goal should be to put forward a new proposal for international monetary relations on the scale of the 1944 Bretton Woods agreement, invoking the same sentiments that inspired architects John Maynard Keynes and Harry Dexter White to provide a foundation of hope for a world all too prone to violence. A global system based on a universally-accepted monetary asset -- the U.S. has the world's highest level of official gold reserves, followed by Germany and France -- would not only counter Russia's offensive. It would convert a national security threat into a golden opportunity."
Friday, April 18, 2008
Money News - "Hussman: Mortgage Crisis Just Beginning" (4-18-08)
"The subprime mortgage crisis is far from over and may still only be in its early stages, says money fund guru John Hussman, who manages the $3.18 billion Hussman Strategic Growth Fund. Hussman reckons the U.S. economy is just starting the game of mortgage defaults and has many more innings to go. He points to the number of adjustable mortgages yet to reset to higher rates — so high that many more foreclosures are inevitable."
Times Online - "Morgan Stanley predicts one in ten homeowners ‘facing negative equity’" (4-18-08)
"House prices will fall by 15 per cent in the next two years, pushing one in ten homeowners into negative equity, a leading investment bank has forecast. Morgan Stanley predicts that 1.2 million people will be in negative equity, owing more money on their mortgage than their home is worth — levels not seen since the early 1990s."
Yahoo - "Is It Time to Buy Real Estate?" (4-18-08)
"Representatives of the NAR say that this makes it the best buyer's market in a long time. Prices are down, interest rates are near a 45-year low and the supply of houses is high."
CNN - "Momentum builds for foreclosure relief" (4-18-08)
"Congress isn't done debating how best to stem the foreclosure crisis, but one near-certainty has emerged: Lawmakers will pull together a housing bill that expands Washington's role in helping troubled borrowers. Key legislators, Bush administration officials, banking regulators and the presidential candidates have lined up behind the idea of letting the Federal Housing Administration back new loans for homeowners at risk of foreclosure."
Bloomberg - "Citigroup Reports Loss on Writedowns, Credit Costs" (4-18-08)
"Citigroup, the biggest U.S. bank by assets, reported almost $16 billion of trading writedowns and increased bad loan reserves as customers fell behind on home, car and credit-card payments. The New York-based company's net loss of $1.02 a share compared with an estimate of $1.66 by Merrill Lynch & Co.'s Guy Moszkowski, Institutional Investor's top-rated brokerage analyst, who had predicted an $18 billion writedown."
Bloomberg - "Two-Year Treasury Notes Post Biggest Weekly Decline Since 2001" (4-18-08)
"U.S. two-year Treasury notes posted their biggest weekly decline since 2001 as better-than-forecast revenue from Citigroup Inc. spurred gains in stocks and decreased demand for government debt."
Bloomberg - "Auction-Bond Probes Widen as Cuomo Subpoenas 18 Firms" (4-18-08)
"Regulators are widening their probes into the collapse of the auction-rate securities market as states from New York to Washington scrutinize how Wall Street peddled the bonds to investors and issuers. New York Attorney General Andrew Cuomo subpoenaed 18 banks and securities firms including UBS AG and Merrill Lynch & Co. in an investigation that could lead to criminal charges, a person familiar with the probe said yesterday. Officials from nine other states formed a task force to determine whether brokers misrepresented the debt as an alternative to money-market investments when they sold it to individuals."
Bloomberg - "Bush Names SBA Head Preston as Housing Secretary" (4-18-08)
"President George W. Bush today named Steven C. Preston secretary of U.S. Housing and Urban Development, replacing Alphonso Jackson, who resigned amid a federal criminal probe into contracts awarded by the agency. Preston, head of the Small Business Administration, would be the nation's 14th HUD secretary. Jackson announced his resignation March 31 amid calls by lawmakers for him to step down. His last day on the job was today."
Bloomberg - "Former Fannie Mae Executives to Pay $31.4 Million" (4-18-08)
"Former Fannie Mae Chief Executive Officer Franklin Raines and two deputies agreed to a $31.4 million settlement with the government over allegations they inflated earnings at the largest U.S. mortgage-finance company. Raines is paying $24.7 million, including a $2 million penalty and the forfeiture of stock options, the Office of Federal Housing Enterprise Oversight said in a statement today. Former Chief Financial Officer Timothy Howard will surrender $6.4 million, and Leanne Spencer, who was the Washington-based company's controller, was fined $275,000."
Orange County Register - "Foreclosure rate in central O.C. 10 times that of coast" (4-18-08)
"DataQuick’s math shows that in the first quarter ‘08 in Orange County there were more than 10 foreclosures per 1,000 houses and condos in a couple of ZIP codes in Santa Ana, while some areas along the coast had less than 1 foreclosure per 1,000. I have a story and big map running in Sunday’s newspaper, but wanted to give you a preview of the map. Dark green is less than 1 per 1,000 and dark red is 6 per 1,000 and higher."
Orange County Register - "K. Hovnanian closing Irvine office" (4-18-08)
"New Jersey-based builder K. Hovnanian Homes has filed a report with the state indicating that it plans to close its Southern California Coastal Region office in Irvine, consolidating its Orange County operations with the Southern California Inland Region in Ontario. As many as 60 positions are being eliminated in the two offices as well as in K. Hovnanian’s field offices from San Diego to the lower central valley, said Nicholas Pappas, the Coastal Region president in Irvine. About 30 of the employees based in Irvine will be jobless when the office closes by May 23, about a dozen of them because they are unwilling to commute to the Ontario office."
"The subprime mortgage crisis is far from over and may still only be in its early stages, says money fund guru John Hussman, who manages the $3.18 billion Hussman Strategic Growth Fund. Hussman reckons the U.S. economy is just starting the game of mortgage defaults and has many more innings to go. He points to the number of adjustable mortgages yet to reset to higher rates — so high that many more foreclosures are inevitable."
Times Online - "Morgan Stanley predicts one in ten homeowners ‘facing negative equity’" (4-18-08)
"House prices will fall by 15 per cent in the next two years, pushing one in ten homeowners into negative equity, a leading investment bank has forecast. Morgan Stanley predicts that 1.2 million people will be in negative equity, owing more money on their mortgage than their home is worth — levels not seen since the early 1990s."
Yahoo - "Is It Time to Buy Real Estate?" (4-18-08)
"Representatives of the NAR say that this makes it the best buyer's market in a long time. Prices are down, interest rates are near a 45-year low and the supply of houses is high."
CNN - "Momentum builds for foreclosure relief" (4-18-08)
"Congress isn't done debating how best to stem the foreclosure crisis, but one near-certainty has emerged: Lawmakers will pull together a housing bill that expands Washington's role in helping troubled borrowers. Key legislators, Bush administration officials, banking regulators and the presidential candidates have lined up behind the idea of letting the Federal Housing Administration back new loans for homeowners at risk of foreclosure."
Bloomberg - "Citigroup Reports Loss on Writedowns, Credit Costs" (4-18-08)
"Citigroup, the biggest U.S. bank by assets, reported almost $16 billion of trading writedowns and increased bad loan reserves as customers fell behind on home, car and credit-card payments. The New York-based company's net loss of $1.02 a share compared with an estimate of $1.66 by Merrill Lynch & Co.'s Guy Moszkowski, Institutional Investor's top-rated brokerage analyst, who had predicted an $18 billion writedown."
Bloomberg - "Two-Year Treasury Notes Post Biggest Weekly Decline Since 2001" (4-18-08)
"U.S. two-year Treasury notes posted their biggest weekly decline since 2001 as better-than-forecast revenue from Citigroup Inc. spurred gains in stocks and decreased demand for government debt."
Bloomberg - "Auction-Bond Probes Widen as Cuomo Subpoenas 18 Firms" (4-18-08)
"Regulators are widening their probes into the collapse of the auction-rate securities market as states from New York to Washington scrutinize how Wall Street peddled the bonds to investors and issuers. New York Attorney General Andrew Cuomo subpoenaed 18 banks and securities firms including UBS AG and Merrill Lynch & Co. in an investigation that could lead to criminal charges, a person familiar with the probe said yesterday. Officials from nine other states formed a task force to determine whether brokers misrepresented the debt as an alternative to money-market investments when they sold it to individuals."
Bloomberg - "Bush Names SBA Head Preston as Housing Secretary" (4-18-08)
"President George W. Bush today named Steven C. Preston secretary of U.S. Housing and Urban Development, replacing Alphonso Jackson, who resigned amid a federal criminal probe into contracts awarded by the agency. Preston, head of the Small Business Administration, would be the nation's 14th HUD secretary. Jackson announced his resignation March 31 amid calls by lawmakers for him to step down. His last day on the job was today."
Bloomberg - "Former Fannie Mae Executives to Pay $31.4 Million" (4-18-08)
"Former Fannie Mae Chief Executive Officer Franklin Raines and two deputies agreed to a $31.4 million settlement with the government over allegations they inflated earnings at the largest U.S. mortgage-finance company. Raines is paying $24.7 million, including a $2 million penalty and the forfeiture of stock options, the Office of Federal Housing Enterprise Oversight said in a statement today. Former Chief Financial Officer Timothy Howard will surrender $6.4 million, and Leanne Spencer, who was the Washington-based company's controller, was fined $275,000."
Orange County Register - "Foreclosure rate in central O.C. 10 times that of coast" (4-18-08)
"DataQuick’s math shows that in the first quarter ‘08 in Orange County there were more than 10 foreclosures per 1,000 houses and condos in a couple of ZIP codes in Santa Ana, while some areas along the coast had less than 1 foreclosure per 1,000. I have a story and big map running in Sunday’s newspaper, but wanted to give you a preview of the map. Dark green is less than 1 per 1,000 and dark red is 6 per 1,000 and higher."
Orange County Register - "K. Hovnanian closing Irvine office" (4-18-08)
"New Jersey-based builder K. Hovnanian Homes has filed a report with the state indicating that it plans to close its Southern California Coastal Region office in Irvine, consolidating its Orange County operations with the Southern California Inland Region in Ontario. As many as 60 positions are being eliminated in the two offices as well as in K. Hovnanian’s field offices from San Diego to the lower central valley, said Nicholas Pappas, the Coastal Region president in Irvine. About 30 of the employees based in Irvine will be jobless when the office closes by May 23, about a dozen of them because they are unwilling to commute to the Ontario office."
Thursday, April 17, 2008
DQNews - "Bay Area home sales remain at two-decade low" (4-17-08)
"A total of 4,898 new and resale houses and condos sold in the nine- county Bay Area in March. That was up 22.8 percent from 3,989 in February, and down 41.1 percent from 8,317 for March 2007, DataQuick Information Systems reported."
The Californian - "HOUSING: Bargain-hunters swarm market" (4-17-08)
"Escrows closed on 522 homes in March, the largest number since August 2006, according to monthly totals from the region's most widely used real estate listing service. The number rose by double digits from year-ago levels in January, and again in February and in March."
Bloomberg - "Merrill Posts Loss on Mortgage Writedowns, Cuts Jobs" (4-17-08)
"Merrill Lynch & Co. posted its third straight quarterly loss and said it will cut about 3,000 more jobs after the credit-market seizure forced the investment bank to write down about $6.5 billion of debt. The smaller-than-estimated charge helped push Merrill shares up as much as 4.7 percent. Analysts including Roger Freeman of Lehman Brothers Holdings Inc. had predicted markdowns of as much as $8 billion. The first-quarter net loss of $1.96 billion, or $2.19 a share, compared with earnings of $2.16 billion, or $2.26, a year earlier, Merrill said."
Bloomberg - "CIT Group Posts Loss on Bad Loans, Cuts Dividend" (4-17-08)
"CIT Group Inc., the commercial lender trying to escape a cash squeeze, cut its dividend and said the firm was unprofitable for a fourth straight quarter after failing to staunch losses on home and student loans. The lender rose 6.1 percent in New York trading after CIT said it found buyers for more than $5 billion of assets and has money to meet obligations into 2009. The first quarter's $249.7 million loss before preferred dividends, or $1.35 a share, compares with a profit of $208.1 million, or $1.01 a share, in the same period a year earlier, according to a statement."
Bloomberg - "Roski Plans $800 Million NFL Stadium in Los Angeles" (4-17-08)
"Developer Edward P. Roski Jr. announced plans to build a new $800 million stadium in Los Angeles to lure a National Football League team to the city. The arena would be constructed on an almost 600-acre site in the City of Industry and include 75,000 seats and 175 suites, Roski said today in a statement. He said he wants to purchase a team or become a minority owner in one, and won't build until a franchise agrees to move to Los Angeles."
Bloomberg - "FBI's Mueller Says Subprime Fraud Probe May Lead to Hedge Funds" (4-17-08)
"FBI Director Robert Mueller said the agency's investigations into the subprime loan meltdown may uncover financial crimes committed by hedge funds and private equity firms. Federal Bureau of Investigation agents have opened 19 criminal probes of companies in connection with the lending crisis, focusing on accounting fraud, insider trading and allegations of deceptive sales practices. Mueller, speaking today to an American Bar Association group in Washington, said he expects more to come as housing prices continue to fall. "
Reuters - "Banks' caution an economic threat: Kohn" (4-17-08)
"U.S. growth has stumbled after the collapse of the subprime mortgage market made financial firms seek refuge from spiraling losses, triggering global financial turmoil prompting the Fed to slash interest rates by 3 percentage points since September."
Orange County Register - "O.C. apartment vacancies hit near 13-year high" (4-17-08)
"Real Facts reports that vacancies in O.C.’s biggest apartment complexes jumped to 6.6% in the first quarter, a level that renters have not seen since 1995’s third quarter as new units hit the market amid a slowing economy."
Orange County Register - "Home-sales tsunami reaches O.C. beach towns" (4-17-08)
"Analysis of DataQuick’s March homebuying report shows the county’s beach-close communities are no longer immune from the current housing slump. DataQuick identified 295 homes selling in beach cities’ ZIP codes last month, a 46% drop from a year ago. In these 17 ZIPs, last month’s median price change was off 11.9% vs. a year ago."
The Wall Street Journal - "Why Lenders Are Leery Of Short Sales" (4-17-08)
"As more people fall behind on their mortgages, lenders have been slow to take advantage of a longstanding alternative to foreclosure -- a so-called short sale. At first glance, a short sale might seem like a win-win for everyone involved. In such an arrangement, the borrower sells the home for less than the amount owed, with the lender forgiving the difference. The sale releases borrowers from their obligations. For mortgage holders, it can be less costly than foreclosing -- and could provide protection against future price drops. For buyers, it can be a chance to buy a home at an attractive price."
The Wall Street Journal - "Freddie Mac to Unveil Lenders' Pact" (4-17-08)
"Freddie Mac is expected to announce Thursday an agreement with three major mortgage lenders aimed at making more funds available for large home loans. The agreement is with Wells Fargo & Co., J.P. Morgan Chase & Co. and Citigroup Inc., Freddie officials said."
"A total of 4,898 new and resale houses and condos sold in the nine- county Bay Area in March. That was up 22.8 percent from 3,989 in February, and down 41.1 percent from 8,317 for March 2007, DataQuick Information Systems reported."
The Californian - "HOUSING: Bargain-hunters swarm market" (4-17-08)
"Escrows closed on 522 homes in March, the largest number since August 2006, according to monthly totals from the region's most widely used real estate listing service. The number rose by double digits from year-ago levels in January, and again in February and in March."
Bloomberg - "Merrill Posts Loss on Mortgage Writedowns, Cuts Jobs" (4-17-08)
"Merrill Lynch & Co. posted its third straight quarterly loss and said it will cut about 3,000 more jobs after the credit-market seizure forced the investment bank to write down about $6.5 billion of debt. The smaller-than-estimated charge helped push Merrill shares up as much as 4.7 percent. Analysts including Roger Freeman of Lehman Brothers Holdings Inc. had predicted markdowns of as much as $8 billion. The first-quarter net loss of $1.96 billion, or $2.19 a share, compared with earnings of $2.16 billion, or $2.26, a year earlier, Merrill said."
Bloomberg - "CIT Group Posts Loss on Bad Loans, Cuts Dividend" (4-17-08)
"CIT Group Inc., the commercial lender trying to escape a cash squeeze, cut its dividend and said the firm was unprofitable for a fourth straight quarter after failing to staunch losses on home and student loans. The lender rose 6.1 percent in New York trading after CIT said it found buyers for more than $5 billion of assets and has money to meet obligations into 2009. The first quarter's $249.7 million loss before preferred dividends, or $1.35 a share, compares with a profit of $208.1 million, or $1.01 a share, in the same period a year earlier, according to a statement."
Bloomberg - "Roski Plans $800 Million NFL Stadium in Los Angeles" (4-17-08)
"Developer Edward P. Roski Jr. announced plans to build a new $800 million stadium in Los Angeles to lure a National Football League team to the city. The arena would be constructed on an almost 600-acre site in the City of Industry and include 75,000 seats and 175 suites, Roski said today in a statement. He said he wants to purchase a team or become a minority owner in one, and won't build until a franchise agrees to move to Los Angeles."
Bloomberg - "FBI's Mueller Says Subprime Fraud Probe May Lead to Hedge Funds" (4-17-08)
"FBI Director Robert Mueller said the agency's investigations into the subprime loan meltdown may uncover financial crimes committed by hedge funds and private equity firms. Federal Bureau of Investigation agents have opened 19 criminal probes of companies in connection with the lending crisis, focusing on accounting fraud, insider trading and allegations of deceptive sales practices. Mueller, speaking today to an American Bar Association group in Washington, said he expects more to come as housing prices continue to fall. "
Reuters - "Banks' caution an economic threat: Kohn" (4-17-08)
"U.S. growth has stumbled after the collapse of the subprime mortgage market made financial firms seek refuge from spiraling losses, triggering global financial turmoil prompting the Fed to slash interest rates by 3 percentage points since September."
Orange County Register - "O.C. apartment vacancies hit near 13-year high" (4-17-08)
"Real Facts reports that vacancies in O.C.’s biggest apartment complexes jumped to 6.6% in the first quarter, a level that renters have not seen since 1995’s third quarter as new units hit the market amid a slowing economy."
Orange County Register - "Home-sales tsunami reaches O.C. beach towns" (4-17-08)
"Analysis of DataQuick’s March homebuying report shows the county’s beach-close communities are no longer immune from the current housing slump. DataQuick identified 295 homes selling in beach cities’ ZIP codes last month, a 46% drop from a year ago. In these 17 ZIPs, last month’s median price change was off 11.9% vs. a year ago."
The Wall Street Journal - "Why Lenders Are Leery Of Short Sales" (4-17-08)
"As more people fall behind on their mortgages, lenders have been slow to take advantage of a longstanding alternative to foreclosure -- a so-called short sale. At first glance, a short sale might seem like a win-win for everyone involved. In such an arrangement, the borrower sells the home for less than the amount owed, with the lender forgiving the difference. The sale releases borrowers from their obligations. For mortgage holders, it can be less costly than foreclosing -- and could provide protection against future price drops. For buyers, it can be a chance to buy a home at an attractive price."
The Wall Street Journal - "Freddie Mac to Unveil Lenders' Pact" (4-17-08)
"Freddie Mac is expected to announce Thursday an agreement with three major mortgage lenders aimed at making more funds available for large home loans. The agreement is with Wells Fargo & Co., J.P. Morgan Chase & Co. and Citigroup Inc., Freddie officials said."
Wednesday, April 16, 2008
NAHB - "Housing Starts Fall Further In March" (4-16-08)
"Builders continued to reduce the pace of new-home construction in March amidst ongoing erosion in the overall economy and credit markets, according to the latest figures released today by the U.S. Commerce Department. Total housing starts fell nearly 12 percent to a seasonally adjusted annual rate of 947,000 units for the month, while single-family starts fell 5.7 percent to a rate of 680,000 units."
NAHB - "Builders Report Credit Squeeze On Loans To Build Homes" (4-16-08)
"Presently, funding for viable residential development and construction projects has been severely limited or blocked entirely at federally insured depository institutions, which are the sole source of housing production credit for the small businesses that comprise most of the home building industry, Mitchell told lawmakers."
Mortgage Bankers Association - "REFIs, FHA Lead Increase In Latest MBA Weekly Survey" (4-16-08)
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 11, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 743.4, an increase of 2.5 percent on a seasonally adjusted basis from 725.6 one week earlier. On an unadjusted basis, the Index increased 2.7 percent compared with the previous week and was up 16.4 percent compared with the same week one year earlier."
CNBC - "Most Americans Say Now Is Good Time to Buy a House" (4-16-08)
"A majority of Americans think now is a good time to buy a home, although few believe the U.S. economy can escape a recession, according to a Reuters/Zogby poll released Wednesday. The survey of 1,049 likely voters found that 53.8 percent thought this was a good buying opportunity as home prices have fallen sharply in many parts of the country. Some 41.6 percent said it was not a good time to buy, and the rest were unsure."
Orange County Register - "OC/LA rent hikes lowest in 8 years" (4-16-08)
"Rents for a primary residence in the LA-OC-Riverside area increased at a 4.4% annual rate in March, a major slide from the 6.9% clocked in March of last year. It was the lowest year-over-year increase since November of 2000, when rents rose at a 4.3% annual pace. March was the third consecutive month annual rent increases declined. The annual rate was 5.9% in January and 5.3% in February."
The Wall Street Journal - "Sunny Side of the Street" (4-16-08)
"Is now a good time to buy real estate? The size of your paycheck likely will play a big part in how you answer that question. While many average Americans are skittish about the housing market, some of the country's richest citizens see the current conditions as perfect for buying, according to the Annual Survey of Affluence and Wealth in America, released on Tuesday by the American Express Publishing Corp. and Harrison Group, a market research and consulting firm."
Bloomberg - "JPMorgan's Dimon Says Real Estate Is `Getting Worse'" (4-16-08)
"JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said he expects U.S. home prices to drop as much as 9 percent this year as even borrowers with the best credit have difficulty keeping up their mortgage payments."
"Builders continued to reduce the pace of new-home construction in March amidst ongoing erosion in the overall economy and credit markets, according to the latest figures released today by the U.S. Commerce Department. Total housing starts fell nearly 12 percent to a seasonally adjusted annual rate of 947,000 units for the month, while single-family starts fell 5.7 percent to a rate of 680,000 units."
NAHB - "Builders Report Credit Squeeze On Loans To Build Homes" (4-16-08)
"Presently, funding for viable residential development and construction projects has been severely limited or blocked entirely at federally insured depository institutions, which are the sole source of housing production credit for the small businesses that comprise most of the home building industry, Mitchell told lawmakers."
Mortgage Bankers Association - "REFIs, FHA Lead Increase In Latest MBA Weekly Survey" (4-16-08)
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 11, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 743.4, an increase of 2.5 percent on a seasonally adjusted basis from 725.6 one week earlier. On an unadjusted basis, the Index increased 2.7 percent compared with the previous week and was up 16.4 percent compared with the same week one year earlier."
CNBC - "Most Americans Say Now Is Good Time to Buy a House" (4-16-08)
"A majority of Americans think now is a good time to buy a home, although few believe the U.S. economy can escape a recession, according to a Reuters/Zogby poll released Wednesday. The survey of 1,049 likely voters found that 53.8 percent thought this was a good buying opportunity as home prices have fallen sharply in many parts of the country. Some 41.6 percent said it was not a good time to buy, and the rest were unsure."
Orange County Register - "OC/LA rent hikes lowest in 8 years" (4-16-08)
"Rents for a primary residence in the LA-OC-Riverside area increased at a 4.4% annual rate in March, a major slide from the 6.9% clocked in March of last year. It was the lowest year-over-year increase since November of 2000, when rents rose at a 4.3% annual pace. March was the third consecutive month annual rent increases declined. The annual rate was 5.9% in January and 5.3% in February."
The Wall Street Journal - "Sunny Side of the Street" (4-16-08)
"Is now a good time to buy real estate? The size of your paycheck likely will play a big part in how you answer that question. While many average Americans are skittish about the housing market, some of the country's richest citizens see the current conditions as perfect for buying, according to the Annual Survey of Affluence and Wealth in America, released on Tuesday by the American Express Publishing Corp. and Harrison Group, a market research and consulting firm."
Bloomberg - "JPMorgan's Dimon Says Real Estate Is `Getting Worse'" (4-16-08)
"JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said he expects U.S. home prices to drop as much as 9 percent this year as even borrowers with the best credit have difficulty keeping up their mortgage payments."
NAHB - "Builder Confidence Remains Unchanged In April" (4-15-08)
"Builder confidence in the market for new single-family homes remained unchanged for a third consecutive month in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI held at 20, up marginally from the record low of 18 set in December of 2007 (the series began in January of 1985)."
NAHB - "Nation Now In Mild Recession, Says NAHB Chief Economist" (4-15-08)
"The deepening slump in the nation’s housing markets has seriously eroded consumer sentiment and pushed the economy into a mild recession, according to the chief economist for the National Association of Home Builders (NAHB)."
DQNews - "Southland home sales log tepid gain; record price drop" (4-15-08)
"A total of 12,808 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in March. That was up 18.8 percent from 10,777 the previous month but down 41.4 percent from 21,856 in March 2007, according to DataQuick Information Systems."
CBIA - "California New Home Market Stays Cold in February, CBIA Announces" (4-15-08)
"The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report showed that new home sales in February were 57 percent below February 2007. While a significant decline, the drop is a small improvement from the year-over-year decline of over 62% in January. During February, 3,191 homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 7,458 in February 2007. Sales of single family homes dropped by 52 percent, while sales of townhomes and 'plexes' – duplexes, triplexes, etc. – were down 48 percent and sales of condominiums were down 79 percent."
Bloomberg - "Swaps Tied to Losses Became `Frankenstein's Monster'" (4-15-08)
"The credit-default swap market has become a lesson in being careful what you wish for now that Wall Street has taken $245 billion of losses partly tied to such exotica. Rather than dispersing risk and lowering borrowing costs as former Federal Reserve Chairman Alan Greenspan predicted, the contracts have exacerbated the debt crisis. What was intended as a way for lenders to protect against defaults spawned a market covering $45 trillion of bonds and loans where no one knows how much is traded and speculators who bet on deteriorating credit quality end up forcing that reality."
"Builder confidence in the market for new single-family homes remained unchanged for a third consecutive month in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI held at 20, up marginally from the record low of 18 set in December of 2007 (the series began in January of 1985)."
NAHB - "Nation Now In Mild Recession, Says NAHB Chief Economist" (4-15-08)
"The deepening slump in the nation’s housing markets has seriously eroded consumer sentiment and pushed the economy into a mild recession, according to the chief economist for the National Association of Home Builders (NAHB)."
DQNews - "Southland home sales log tepid gain; record price drop" (4-15-08)
"A total of 12,808 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in March. That was up 18.8 percent from 10,777 the previous month but down 41.4 percent from 21,856 in March 2007, according to DataQuick Information Systems."
CBIA - "California New Home Market Stays Cold in February, CBIA Announces" (4-15-08)
"The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report showed that new home sales in February were 57 percent below February 2007. While a significant decline, the drop is a small improvement from the year-over-year decline of over 62% in January. During February, 3,191 homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 7,458 in February 2007. Sales of single family homes dropped by 52 percent, while sales of townhomes and 'plexes' – duplexes, triplexes, etc. – were down 48 percent and sales of condominiums were down 79 percent."
Bloomberg - "Swaps Tied to Losses Became `Frankenstein's Monster'" (4-15-08)
"The credit-default swap market has become a lesson in being careful what you wish for now that Wall Street has taken $245 billion of losses partly tied to such exotica. Rather than dispersing risk and lowering borrowing costs as former Federal Reserve Chairman Alan Greenspan predicted, the contracts have exacerbated the debt crisis. What was intended as a way for lenders to protect against defaults spawned a market covering $45 trillion of bonds and loans where no one knows how much is traded and speculators who bet on deteriorating credit quality end up forcing that reality."
Monday, April 14, 2008
Bloomberg - "Wachovia Posts Loss, Plans $7 Billion Capital Raising" (4-14-08)
"Wachovia Corp., the fourth-largest U.S. bank, sold $7 billion of stock and cut the dividend after bad home loans in California triggered an unexpected first-quarter loss. The $393 million loss compared with profit of $2.3 billion a year earlier, Wachovia said in a statement today. Wachovia fell the most intraday since the 1987 crash in New York trading after the bank disclosed plans to sell shares at 14 percent less than last week's closing price and cut 500 investment banking jobs, mostly in New York and Charlotte. The stock ended the day down 8.1 percent."
Bloomberg - "Nothing Special With Treasuries as Fed Has Mortgages" (4-14-08)
"The dollar isn't the only casualty of the Federal Reserve's rescue of seized-up credit markets. Bond traders are finding there is nothing special about Treasuries anymore, now that the Fed accepts substitutes for government securities as collateral -- having concluded it wasn't enough to reduce the benchmark interest rate for overnight bank loans six times since September."
Times Online - "US Federal Reserve says that credit crisis is not over yet" (4-14-08)
"The credit crisis engulfing the banking system on both sides of the Atlantic has further to run, said the vice-chairman of the US Federal Reserve. As the US Treasury Secretary and central bankers gave warning that proposed financial reforms would not prevent a repeat of the biggest shock to the world economy since the Great Depression, Donald Kohn, of the Fed, said of the present trouble: 'It is not over yet.'"
CNN - "Majority not buying homes, poll shows" (4-14-08)
"A growing majority say they won't buy a home anytime soon, the latest sign of increasing pessimism about the nation's housing crisis, a poll showed Monday. In a vivid sketch of how the sputtering real estate market is causing distress throughout the country, the Associated Press-AOL Money & Finance poll found that more than a quarter of homeowners worry their home will lose value over the next two years."
Bloomberg - "Bernanke, Greenspan Agree Cash Arms Firms for Slump" (4-14-08)
"The U.S. economy has what Alan Greenspan calls one 'major advantage' as it falls into a recession: Businesses are in far better financial shape than they were entering the past two contractions. Corporations outside of financial services -- from Cisco Systems Inc. to Coca-Cola Co. -- have collectively socked away more than half a trillion dollars in cash. They have also reduced short-term debt and cut inventories to near record-low levels in relation to sales, leaving them better prepared than in the past to weather a contraction."
Bloomberg - "Auction Rate Collapse Brings Bondholders 12% After-Tax Return" (4-14-08)
"The collapse of the $330 billion auction-rate debt market, a disaster for issuers and stranded bondholders, has made it possible for investors to earn 10 percent or more on top-rated securities. Puerto Rico's tax-free AAA 2024 general obligation bonds are paying 12 percent, equivalent to an 18.5 percent yield on taxable issues. That compares with rates of 4.3 percent for 10-year U.S. Treasuries and 10.5 percent for corporate high- yield, high-risk debt, according to indexes compiled by Merrill Lynch & Co."
Bloomberg - "CEO Pay Helped Fuel Subprime Crisis, AFL-CIO Says" (4-14-08)
"Pay plans for chief executive officers helped create the subprime-mortgage crisis by encouraging companies to take on too much risk for short-term gains, the AFL-CIO said in an analysis."
Orange County Register - "Economic slowdown hits O.C. office marketEconomic slowdown hits O.C. office market" (4-14-08)
"Voit Commercial Brokerage says economic uncertainty hit the O.C. office market in the first quarter, with vacancies rising into double-digit territory while lease rates and construction declined."
Orange County Register - "O.C. 3rd in U.S. for least affordable rents" (4-14-08)
"The National Low Income Housing Coalition ranks Orange County as the third most expensive metropolitan area in the U.S. in terms of wages needed to afford the fair market rent. The coalition’s Out of Reach 2007-2008 report estimates that 58% of tenants here can’t afford rents based on their income."
Los Angeles Times - "Listing prices down $130K from peak" (4-14-08)
"Median listing prices in Greater Los Angeles fell another $5,000 in the past week, and have now declined $130,000 from their bubble peak, according to Housing Tracker's analysis of MLS listings."
"Wachovia Corp., the fourth-largest U.S. bank, sold $7 billion of stock and cut the dividend after bad home loans in California triggered an unexpected first-quarter loss. The $393 million loss compared with profit of $2.3 billion a year earlier, Wachovia said in a statement today. Wachovia fell the most intraday since the 1987 crash in New York trading after the bank disclosed plans to sell shares at 14 percent less than last week's closing price and cut 500 investment banking jobs, mostly in New York and Charlotte. The stock ended the day down 8.1 percent."
Bloomberg - "Nothing Special With Treasuries as Fed Has Mortgages" (4-14-08)
"The dollar isn't the only casualty of the Federal Reserve's rescue of seized-up credit markets. Bond traders are finding there is nothing special about Treasuries anymore, now that the Fed accepts substitutes for government securities as collateral -- having concluded it wasn't enough to reduce the benchmark interest rate for overnight bank loans six times since September."
Times Online - "US Federal Reserve says that credit crisis is not over yet" (4-14-08)
"The credit crisis engulfing the banking system on both sides of the Atlantic has further to run, said the vice-chairman of the US Federal Reserve. As the US Treasury Secretary and central bankers gave warning that proposed financial reforms would not prevent a repeat of the biggest shock to the world economy since the Great Depression, Donald Kohn, of the Fed, said of the present trouble: 'It is not over yet.'"
CNN - "Majority not buying homes, poll shows" (4-14-08)
"A growing majority say they won't buy a home anytime soon, the latest sign of increasing pessimism about the nation's housing crisis, a poll showed Monday. In a vivid sketch of how the sputtering real estate market is causing distress throughout the country, the Associated Press-AOL Money & Finance poll found that more than a quarter of homeowners worry their home will lose value over the next two years."
Bloomberg - "Bernanke, Greenspan Agree Cash Arms Firms for Slump" (4-14-08)
"The U.S. economy has what Alan Greenspan calls one 'major advantage' as it falls into a recession: Businesses are in far better financial shape than they were entering the past two contractions. Corporations outside of financial services -- from Cisco Systems Inc. to Coca-Cola Co. -- have collectively socked away more than half a trillion dollars in cash. They have also reduced short-term debt and cut inventories to near record-low levels in relation to sales, leaving them better prepared than in the past to weather a contraction."
Bloomberg - "Auction Rate Collapse Brings Bondholders 12% After-Tax Return" (4-14-08)
"The collapse of the $330 billion auction-rate debt market, a disaster for issuers and stranded bondholders, has made it possible for investors to earn 10 percent or more on top-rated securities. Puerto Rico's tax-free AAA 2024 general obligation bonds are paying 12 percent, equivalent to an 18.5 percent yield on taxable issues. That compares with rates of 4.3 percent for 10-year U.S. Treasuries and 10.5 percent for corporate high- yield, high-risk debt, according to indexes compiled by Merrill Lynch & Co."
Bloomberg - "CEO Pay Helped Fuel Subprime Crisis, AFL-CIO Says" (4-14-08)
"Pay plans for chief executive officers helped create the subprime-mortgage crisis by encouraging companies to take on too much risk for short-term gains, the AFL-CIO said in an analysis."
Orange County Register - "Economic slowdown hits O.C. office marketEconomic slowdown hits O.C. office market" (4-14-08)
"Voit Commercial Brokerage says economic uncertainty hit the O.C. office market in the first quarter, with vacancies rising into double-digit territory while lease rates and construction declined."
Orange County Register - "O.C. 3rd in U.S. for least affordable rents" (4-14-08)
"The National Low Income Housing Coalition ranks Orange County as the third most expensive metropolitan area in the U.S. in terms of wages needed to afford the fair market rent. The coalition’s Out of Reach 2007-2008 report estimates that 58% of tenants here can’t afford rents based on their income."
Los Angeles Times - "Listing prices down $130K from peak" (4-14-08)
"Median listing prices in Greater Los Angeles fell another $5,000 in the past week, and have now declined $130,000 from their bubble peak, according to Housing Tracker's analysis of MLS listings."
Friday, April 11, 2008
Voice of San Diego - "Jury Says Realtor Not to Blame for Purchase Price" (4-11-08)
"What are the responsibilities of a real estate agent? The real estate camp was concerned that if the plaintiffs won Thursday, it would catalyze and focus a growing urge around the country to find someone to blame -- and to hold financially responsible -- when houses aren't worth as much as their buyers once paid. Those who sided with the Ummels worried their case would be chalked up to rich people problems, a matter of a measly $150,000 in the scope of a million-dollar tract home near a golf course in North County."
Bloomberg - "Subprime Forces More Insurer CEO Pay Cuts Than Storms" (4-11-08)
"Subprime mortgages have proved to be a bigger catastrophe for captains of the insurance industry than any natural disaster. American International Group Inc. cut the 2007 cash bonus for Chief Executive Officer Martin Sullivan by 42 percent as the world's largest insurer reported its biggest quarterly loss in 89 years. Ambac Financial Group Inc. denied Robert Genader any bonus, slashed his cash compensation by 71 percent and then replaced him in January. The reduction was the most of any insurer in the Standard & Poor's 500 Insurance Index."
New York Post - "ECONOMIC HYSTERIA" (4-11-08)
"MEDIA hysteria over the mortgage crisis is almost certainly misleading countless people about prospects for the real economy. The US economy is likely in recession. Yet even that conclusion may be premature - it rests on a short sample of slim evidence. Industrial production has fallen for only one month. First-time claims for unemployment insurance touched recession levels for just one week."
Bloomberg - "WaMu Estimates Cut by Goldman, Short Sale Recommended" (4-11-08)
"Washington Mutual Inc.'s 2008 loss will be wider than first estimated, according to Goldman Sachs Group Inc., which recommended selling the shares short. Goldman analysts including James Fotheringham increased their estimate for Seattle-based Washington Mutual's full-year loss to $3.30 a share from $1 after the company's 'highly dilutive' share sale, the securities firm said today in a note to investors. Goldman helped arrange the $7 billion transaction earlier this week at 33 percent below the market price."
Yahoo - "G7 finance chiefs look for ways past credit crisis" (4-11-08)
"Finance chiefs from rich nations gathered on Friday to agree on the best course to navigate beyond a credit crisis that threatens to trigger a global recession. With fresh signs of economic distress in the United States, where consumer confidence hit its lowest level since 1982, Group of Seven leaders acknowledged that global growth prospects had dimmed."
Bloomberg - "Lehman CFO Says Market Recovery May Take Until 2009" (4-11-08)
"The global credit market crisis worsened last month and recovery for the securities industry may take until next year, Lehman Brothers Holdings Inc. Chief Financial Officer Erin Callan said."
Bloomberg - "Wachovia Tightens Standards for Home Loans Nationally" (4-11-08)
"Wachovia Corp., the fourth-largest U.S. bank, will require minimum credit scores for mortgage borrowers and will reduce loan-to-value ratios because of the weak U.S. housing market."
Bloomberg - "Subprime Forces More Insurer CEO Pay Cuts Than Storms" (4-11-08)
"Subprime mortgages have proved to be a bigger catastrophe for captains of the insurance industry than any natural disaster. American International Group Inc. cut the 2007 cash bonus for Chief Executive Officer Martin Sullivan by 42 percent as the world's largest insurer reported its biggest quarterly loss in 89 years. Ambac Financial Group Inc. denied Robert Genader any bonus, slashed his cash compensation by 71 percent and then replaced him in January. The reduction was the most of any insurer in the Standard & Poor's 500 Insurance Index."
Orange County Register - "Late-March home sales up in just 5 O.C. ZIPs" (4-11-08)
"DataQuick’s latest look at O.C.housing purchases shows that just 5 of 83 local ZIP codes enjoyed year-to-year sales growth in the 22 business days ended March 26. (The lucky five? Irvine 92618, Anaheim 92805, Orange 92865, Santa Ana 92703 — yes, Santa Ana, and Dana Point 92624.) Overall, sales were down 41%."
"What are the responsibilities of a real estate agent? The real estate camp was concerned that if the plaintiffs won Thursday, it would catalyze and focus a growing urge around the country to find someone to blame -- and to hold financially responsible -- when houses aren't worth as much as their buyers once paid. Those who sided with the Ummels worried their case would be chalked up to rich people problems, a matter of a measly $150,000 in the scope of a million-dollar tract home near a golf course in North County."
Bloomberg - "Subprime Forces More Insurer CEO Pay Cuts Than Storms" (4-11-08)
"Subprime mortgages have proved to be a bigger catastrophe for captains of the insurance industry than any natural disaster. American International Group Inc. cut the 2007 cash bonus for Chief Executive Officer Martin Sullivan by 42 percent as the world's largest insurer reported its biggest quarterly loss in 89 years. Ambac Financial Group Inc. denied Robert Genader any bonus, slashed his cash compensation by 71 percent and then replaced him in January. The reduction was the most of any insurer in the Standard & Poor's 500 Insurance Index."
New York Post - "ECONOMIC HYSTERIA" (4-11-08)
"MEDIA hysteria over the mortgage crisis is almost certainly misleading countless people about prospects for the real economy. The US economy is likely in recession. Yet even that conclusion may be premature - it rests on a short sample of slim evidence. Industrial production has fallen for only one month. First-time claims for unemployment insurance touched recession levels for just one week."
Bloomberg - "WaMu Estimates Cut by Goldman, Short Sale Recommended" (4-11-08)
"Washington Mutual Inc.'s 2008 loss will be wider than first estimated, according to Goldman Sachs Group Inc., which recommended selling the shares short. Goldman analysts including James Fotheringham increased their estimate for Seattle-based Washington Mutual's full-year loss to $3.30 a share from $1 after the company's 'highly dilutive' share sale, the securities firm said today in a note to investors. Goldman helped arrange the $7 billion transaction earlier this week at 33 percent below the market price."
Yahoo - "G7 finance chiefs look for ways past credit crisis" (4-11-08)
"Finance chiefs from rich nations gathered on Friday to agree on the best course to navigate beyond a credit crisis that threatens to trigger a global recession. With fresh signs of economic distress in the United States, where consumer confidence hit its lowest level since 1982, Group of Seven leaders acknowledged that global growth prospects had dimmed."
Bloomberg - "Lehman CFO Says Market Recovery May Take Until 2009" (4-11-08)
"The global credit market crisis worsened last month and recovery for the securities industry may take until next year, Lehman Brothers Holdings Inc. Chief Financial Officer Erin Callan said."
Bloomberg - "Wachovia Tightens Standards for Home Loans Nationally" (4-11-08)
"Wachovia Corp., the fourth-largest U.S. bank, will require minimum credit scores for mortgage borrowers and will reduce loan-to-value ratios because of the weak U.S. housing market."
Bloomberg - "Subprime Forces More Insurer CEO Pay Cuts Than Storms" (4-11-08)
"Subprime mortgages have proved to be a bigger catastrophe for captains of the insurance industry than any natural disaster. American International Group Inc. cut the 2007 cash bonus for Chief Executive Officer Martin Sullivan by 42 percent as the world's largest insurer reported its biggest quarterly loss in 89 years. Ambac Financial Group Inc. denied Robert Genader any bonus, slashed his cash compensation by 71 percent and then replaced him in January. The reduction was the most of any insurer in the Standard & Poor's 500 Insurance Index."
Orange County Register - "Late-March home sales up in just 5 O.C. ZIPs" (4-11-08)
"DataQuick’s latest look at O.C.housing purchases shows that just 5 of 83 local ZIP codes enjoyed year-to-year sales growth in the 22 business days ended March 26. (The lucky five? Irvine 92618, Anaheim 92805, Orange 92865, Santa Ana 92703 — yes, Santa Ana, and Dana Point 92624.) Overall, sales were down 41%."
Thursday, April 10, 2008
NAHB - "Housing Bills Will Help Homeowners And Economy" (4-10-08)
"The House and Senate versions contain several provisions that will help home buyers, homeowners, strapped borrowers facing foreclosure, state and local governments experiencing budget woes, veterans and businesses suffering losses in the current economic climate."
Mortgage Bankers Association - "MBA’s Kittle Testifies on FHA’s Role in Current Mortgage Market" (4-10-08)
"David G. Kittle, CMB, Vice Chairman of the Mortgage Bankers Association (MBA) and President of Principle Wholesale Lending, Inc. of Louisville, KY testified today before the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development and Related Agencies. In his testimony, Mr. Kittle discussed the important role the Federal Housing Authority (FHA) will play in the current mortgage market turmoil."
Yahoo - "Paulson Says US Economy Has 'Turned Down Sharply'" (4-10-08)
"The U.S. economy has 'turned down sharply' and is at risk for further weakening, US Treasury Secretary Henry Paulson said. But in a speech in Washington, Paulson said the fiscal stimulus checks that will go out to Americans soon will have a real impact on the economy."
Bloomberg - "Goldman Cuts More Jobs, Citing 'Market Conditions'" (4-10-08)
"Goldman Sachs Group Inc., the world's biggest securities firm by market value, is cutting deeper into its ranks, eliminating posts in its mortgage and investment banking units as the credit contraction saps demand."
Bloomberg - "Pimco's Gross Holds Most Mortgage Debt Since 2000" (4-10-08)
"Pacific Investment Management Co.'s Bill Gross lifted holdings of mortgage debt in the world's largest bond fund to the highest since 2000, while putting on the biggest bet against government debt since at least the same year."
Bloomberg - "Fed Was Ready to Lend to More Brokers Before March 16" (4-10-08)
"The Federal Reserve was ready to lend to additional Wall Street brokers besides Bear Stearns Cos. on March 14, a day after the central bank was told that the firm needed emergency funding to avoid filing for bankruptcy. The Fed gave itself the authority to aid investment banks before it announced on Sunday, March 16, that the companies could take out direct loans from the central bank in a similar way to commercial banks. The disclosure came in an April 8 letter from the Fed to Senate Banking Committee Chairman Christopher Dodd that was obtained by Bloomberg News."
CNN - "Hope Now's numbers don't add up to much help" (4-10-08)
"Lenders have helped nearly 1.2 million troubled home owners as part of a Bush-administration led housing rescue effort, according to numbers released Thursday by the Hope Now coalition. But it's still not clear from the data, which represent the total number of workouts from July, 2007 through the end of February, exactly how effective Hope Now has been in keeping people in their homes."
CNN - "The big risk in the foreclosure fix" (4-10-08)
"FHA, a formerly obscure federal agency, is now at center of many plans to fix the housing market. But it may not be up to the task - and that could cost taxpayers a bundle."
Orange County Register - "O.C. seen as 6th riskiest U.S. home market" (4-10-08)
"Orange County ranked 6th most risky in the nation, with an 81% chance that home prices here will fall within two years. That compares to 4th most risky in PMI’s Winter 2008 report, and 3rd most risky in the Fall 2007 report. The Inland Empire again ranked as the most risky metro area among the top 50, with a 93% risk for price drops."
Orange County Register - "O.C. rent hikes to ease in ‘08" (4-10-08)
"The USC Casden Real Estate Economics Forecast predicts that O.C. rent hikes will average 2% to 3.5% this year."
"The House and Senate versions contain several provisions that will help home buyers, homeowners, strapped borrowers facing foreclosure, state and local governments experiencing budget woes, veterans and businesses suffering losses in the current economic climate."
Mortgage Bankers Association - "MBA’s Kittle Testifies on FHA’s Role in Current Mortgage Market" (4-10-08)
"David G. Kittle, CMB, Vice Chairman of the Mortgage Bankers Association (MBA) and President of Principle Wholesale Lending, Inc. of Louisville, KY testified today before the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development and Related Agencies. In his testimony, Mr. Kittle discussed the important role the Federal Housing Authority (FHA) will play in the current mortgage market turmoil."
Yahoo - "Paulson Says US Economy Has 'Turned Down Sharply'" (4-10-08)
"The U.S. economy has 'turned down sharply' and is at risk for further weakening, US Treasury Secretary Henry Paulson said. But in a speech in Washington, Paulson said the fiscal stimulus checks that will go out to Americans soon will have a real impact on the economy."
Bloomberg - "Goldman Cuts More Jobs, Citing 'Market Conditions'" (4-10-08)
"Goldman Sachs Group Inc., the world's biggest securities firm by market value, is cutting deeper into its ranks, eliminating posts in its mortgage and investment banking units as the credit contraction saps demand."
Bloomberg - "Pimco's Gross Holds Most Mortgage Debt Since 2000" (4-10-08)
"Pacific Investment Management Co.'s Bill Gross lifted holdings of mortgage debt in the world's largest bond fund to the highest since 2000, while putting on the biggest bet against government debt since at least the same year."
Bloomberg - "Fed Was Ready to Lend to More Brokers Before March 16" (4-10-08)
"The Federal Reserve was ready to lend to additional Wall Street brokers besides Bear Stearns Cos. on March 14, a day after the central bank was told that the firm needed emergency funding to avoid filing for bankruptcy. The Fed gave itself the authority to aid investment banks before it announced on Sunday, March 16, that the companies could take out direct loans from the central bank in a similar way to commercial banks. The disclosure came in an April 8 letter from the Fed to Senate Banking Committee Chairman Christopher Dodd that was obtained by Bloomberg News."
CNN - "Hope Now's numbers don't add up to much help" (4-10-08)
"Lenders have helped nearly 1.2 million troubled home owners as part of a Bush-administration led housing rescue effort, according to numbers released Thursday by the Hope Now coalition. But it's still not clear from the data, which represent the total number of workouts from July, 2007 through the end of February, exactly how effective Hope Now has been in keeping people in their homes."
CNN - "The big risk in the foreclosure fix" (4-10-08)
"FHA, a formerly obscure federal agency, is now at center of many plans to fix the housing market. But it may not be up to the task - and that could cost taxpayers a bundle."
Orange County Register - "O.C. seen as 6th riskiest U.S. home market" (4-10-08)
"Orange County ranked 6th most risky in the nation, with an 81% chance that home prices here will fall within two years. That compares to 4th most risky in PMI’s Winter 2008 report, and 3rd most risky in the Fall 2007 report. The Inland Empire again ranked as the most risky metro area among the top 50, with a 93% risk for price drops."
Orange County Register - "O.C. rent hikes to ease in ‘08" (4-10-08)
"The USC Casden Real Estate Economics Forecast predicts that O.C. rent hikes will average 2% to 3.5% this year."
Wednesday, April 09, 2008
Mortgage Bankers Association - "Mortgage Applications Increase In Latest MBA Weekly Survey" (4-9-08)
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 4, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 725.6, an increase of 5.4 percent on a seasonally adjusted basis from 688.3 one week earlier. On an unadjusted basis, the Index increased 5.7 percent compared with the previous week and was up 10.9 percent compared with the same week one year earlier."
Bloomberg - "Supreme Court Muni-Bond Delay Has Lawyers, Markets Puzzling" (4-9-08)
"Municipal-bond investors have a new question to ponder amid the turmoil in the $2.6 trillion market: What is taking the U.S. Supreme Court so long? The court heard arguments Nov. 5 on the special tax breaks that 42 states provide to municipal bonds issued within their borders. At the time, many analysts and lawyers predicted a quick decision that would allow in-state exemptions and overturn a Kentucky court ruling that declared them unconstitutional."
The Washington Post - "IMF Puts Cost of Crisis Near $1 Trillion" (4-9-08)
"Worldwide losses from the credit crisis could near $1 trillion, the International Monetary Fund said yesterday, reflecting the massive cost of the breakdown in markets for home mortgages and other kinds of debt. The IMF, which is holding its semiannual meeting in Washington this week, urged banks to disclose losses quickly, raise extra cash if necessary, improve their techniques for dealing with risk and reconsider how top managers are paid so that they have better long-term incentives."
CNN - "House takes on housing amid partisan split" (4-9-08)
"A key House committee took up in earnest Wednesday proposed solutions to the housing crisis as the White House floated an idea to expand a program to help homeowners in the hopes of warding off more stringent legislation. The hearing of the House Financial Services Committee highlights the fault lines in the ongoing debate over how far government should go to ease the mortgage crisis."
Bloomberg - "Citigroup May Sell $12 Billion of Loans, Person Says" (4-9-08)
"Citigroup Inc. is in talks to sell $12 billion of loans at a loss to Apollo Management LP, Blackstone Group LP and TPG Inc. as part of an effort to shrink the bank's balance sheet, a person briefed on the matter said. A sale to the private equity firms would shield the bank from further declines in the value of the debt, said the person, who wouldn't be identified because negotiations are private. The loans are part of the $43 billion in financing that Citigroup agreed to provide for leveraged buyouts last year before credit markets froze and saddled the New York-based company with hard- to-sell assets."
Orange County Register - "Bush expands FHA, again, to aid subprime borrowers" (4-9-08)
"Bush is expanding the Federal Housing Administration’s FHASecure program announced last year to refinance borrowers who became late on payments after a low teaser rate ended. FHA will be able to refinance mortgages after lenders voluntarily reduce the principal owed to a maximum loan-to-value of either 90% or 97% of the home’s current value."
Orange County Register - "Major O.C. business expansions down 10.1%" (4-9-08)
"Although O.C.’s projects dropped by 10.1%, they accounted for nearly a third of the 203 expansions in the five-county SoCal region. Business expansions declined 17.5% regionwide pulled down in large part by the Riverside-San Bernardino area, which saw 30% fewer major projects."
The Wall Street Journal - "To Preserve Home Equity Help Your Neighbor" (4-9-08)
"With falling house prices in the news every day, many homeowners are asking: What's the best way to preserve my home's equity? Unfortunately, unless you can quietly buy your neighbor's house before it becomes a short sale, or convince vulture capitalists to purchase all the foreclosures in your neighborhood, there's little you can do to protect property against today's main drags on home prices."
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 4, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 725.6, an increase of 5.4 percent on a seasonally adjusted basis from 688.3 one week earlier. On an unadjusted basis, the Index increased 5.7 percent compared with the previous week and was up 10.9 percent compared with the same week one year earlier."
Bloomberg - "Supreme Court Muni-Bond Delay Has Lawyers, Markets Puzzling" (4-9-08)
"Municipal-bond investors have a new question to ponder amid the turmoil in the $2.6 trillion market: What is taking the U.S. Supreme Court so long? The court heard arguments Nov. 5 on the special tax breaks that 42 states provide to municipal bonds issued within their borders. At the time, many analysts and lawyers predicted a quick decision that would allow in-state exemptions and overturn a Kentucky court ruling that declared them unconstitutional."
The Washington Post - "IMF Puts Cost of Crisis Near $1 Trillion" (4-9-08)
"Worldwide losses from the credit crisis could near $1 trillion, the International Monetary Fund said yesterday, reflecting the massive cost of the breakdown in markets for home mortgages and other kinds of debt. The IMF, which is holding its semiannual meeting in Washington this week, urged banks to disclose losses quickly, raise extra cash if necessary, improve their techniques for dealing with risk and reconsider how top managers are paid so that they have better long-term incentives."
CNN - "House takes on housing amid partisan split" (4-9-08)
"A key House committee took up in earnest Wednesday proposed solutions to the housing crisis as the White House floated an idea to expand a program to help homeowners in the hopes of warding off more stringent legislation. The hearing of the House Financial Services Committee highlights the fault lines in the ongoing debate over how far government should go to ease the mortgage crisis."
Bloomberg - "Citigroup May Sell $12 Billion of Loans, Person Says" (4-9-08)
"Citigroup Inc. is in talks to sell $12 billion of loans at a loss to Apollo Management LP, Blackstone Group LP and TPG Inc. as part of an effort to shrink the bank's balance sheet, a person briefed on the matter said. A sale to the private equity firms would shield the bank from further declines in the value of the debt, said the person, who wouldn't be identified because negotiations are private. The loans are part of the $43 billion in financing that Citigroup agreed to provide for leveraged buyouts last year before credit markets froze and saddled the New York-based company with hard- to-sell assets."
Orange County Register - "Bush expands FHA, again, to aid subprime borrowers" (4-9-08)
"Bush is expanding the Federal Housing Administration’s FHASecure program announced last year to refinance borrowers who became late on payments after a low teaser rate ended. FHA will be able to refinance mortgages after lenders voluntarily reduce the principal owed to a maximum loan-to-value of either 90% or 97% of the home’s current value."
Orange County Register - "Major O.C. business expansions down 10.1%" (4-9-08)
"Although O.C.’s projects dropped by 10.1%, they accounted for nearly a third of the 203 expansions in the five-county SoCal region. Business expansions declined 17.5% regionwide pulled down in large part by the Riverside-San Bernardino area, which saw 30% fewer major projects."
The Wall Street Journal - "To Preserve Home Equity Help Your Neighbor" (4-9-08)
"With falling house prices in the news every day, many homeowners are asking: What's the best way to preserve my home's equity? Unfortunately, unless you can quietly buy your neighbor's house before it becomes a short sale, or convince vulture capitalists to purchase all the foreclosures in your neighborhood, there's little you can do to protect property against today's main drags on home prices."
Tuesday, April 08, 2008
The Press Enterprise - "Expert: We're in recession" (4-9-08)
"It was only 20 seconds into John Husing's annual forecast on Inland Southern California's economy when he said the word few people in the audience wanted to hear. And, the region's leading economist and a panel of housing and finance experts told a gathering of business leaders Tuesday, there are factors that, if they come to pass, could mean people will say 'recession' more than a few times this year."
NAR - "Existing-Home Sales to Stablize Before Upturn in Second Half of 2008" (4-8-08)
"The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in February, slipped 1.9 percent to 84.6 from an upwardly revised reading of 86.2 in January, and was 21.4 percent lower than the February 2007 index of 107.6. 'The slip in pending home sales implies we’re not out of the woods yet, though an era of successive deep sales declines appears to be over,' Yun said."
CNN - "Best ways to fix the subprime mess" (4-8-08)
"Judges already have the power to shrink or vaporize many debts, like credit card balances and mortgages on investment properties. This idea, supported by Sens. Richard Durbin (D-Ill.) and Christopher Dodd (D-Conn.), would let judges reduce primary home loans as well."
Bloomberg - "Greenspan Says U.S. Home Prices May Stabilize in 2008" (4-8-08)
"Former Federal Reserve Chairman Alan Greenspan said the drop in U.S. home prices will probably end 'well before' early next year as the number of houses on the market diminishes, aiding an economic rebound."
Bloomberg - "Citigroup, Wells Fargo May Loan Less After Downgrades" (4-8-08)
"Bank holding companies including Citigroup Inc., Bank of America Corp. and Wells Fargo & Co. have the thinnest safety cushion against losses in seven years. The margin may erode further in coming weeks. Credit ratings on $704 billion of bonds have been cut this year following the collapse of the U.S. housing market. Sheila Bair, chairman of the Federal Deposit Insurance Corp., said last week that downgrades may compromise bank capital ratios enough that some of the largest institutions will no longer be considered well capitalized."
CNN - "The futile $100M foreclosure fix" (4-8-08)
"Housing counselors are often the last and best line of defense for borrowers facing foreclosure, and the $15 billion housing rescue bill now before the Senate allocates $100 million for foreclosure prevention counseling. More funding is certainly good news for people like Jim Carr, chief operating officer for the National Community Reinvestment Coalition, a non-profit neighborhood advocacy group. He'll use any windfall from this bill to hire more counselors who can hammer out solutions for desperate homeowners and lenders trying to minimize their losses."
Orange County Register - "WaMu to cut 3,000 jobs nationwide, gets $7 billion infusion" (4-8-08)
"Washington Mutual, battered by rising loan delinquencies, said Tuesday it will receive $7 billion in capital from an investment group led by private equity firm TPG and that it will stop doing business with mortgage brokers, reports the Associated Press."
Orange County Register - "Foreclosures seen as O.C.’s hottest-selling homes" (4-8-08)
"As of last Thursday, there were 635 properties listed by agents as 'foreclosures' (typically, bank-owned houses) in escrow vs. 1,060 for sale, or a 'market time' of 1.67 months. Compare that to the countywide total for all homes of 2,285 in escrow (best in 18 months) vs. 15,474 for sale, or a 'market time' of 6.77 months."
Real Estate Journal - "Condo-Hotel BuyersSee Investments Sour" (4-8-08)
"Many buyers purchased the hotel rooms from developers hoping to get paid every time the room was rented. But condo hotels, which account for as much as 10% of all hotel rooms under construction and a much greater percentage in resort markets such as Orlando, Fla., and Las Vegas, are coming back to haunt many of the people who bought the units, the developers that constructed the buildings, and the operators hired to run the hotels."
"It was only 20 seconds into John Husing's annual forecast on Inland Southern California's economy when he said the word few people in the audience wanted to hear. And, the region's leading economist and a panel of housing and finance experts told a gathering of business leaders Tuesday, there are factors that, if they come to pass, could mean people will say 'recession' more than a few times this year."
NAR - "Existing-Home Sales to Stablize Before Upturn in Second Half of 2008" (4-8-08)
"The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in February, slipped 1.9 percent to 84.6 from an upwardly revised reading of 86.2 in January, and was 21.4 percent lower than the February 2007 index of 107.6. 'The slip in pending home sales implies we’re not out of the woods yet, though an era of successive deep sales declines appears to be over,' Yun said."
CNN - "Best ways to fix the subprime mess" (4-8-08)
"Judges already have the power to shrink or vaporize many debts, like credit card balances and mortgages on investment properties. This idea, supported by Sens. Richard Durbin (D-Ill.) and Christopher Dodd (D-Conn.), would let judges reduce primary home loans as well."
Bloomberg - "Greenspan Says U.S. Home Prices May Stabilize in 2008" (4-8-08)
"Former Federal Reserve Chairman Alan Greenspan said the drop in U.S. home prices will probably end 'well before' early next year as the number of houses on the market diminishes, aiding an economic rebound."
Bloomberg - "Citigroup, Wells Fargo May Loan Less After Downgrades" (4-8-08)
"Bank holding companies including Citigroup Inc., Bank of America Corp. and Wells Fargo & Co. have the thinnest safety cushion against losses in seven years. The margin may erode further in coming weeks. Credit ratings on $704 billion of bonds have been cut this year following the collapse of the U.S. housing market. Sheila Bair, chairman of the Federal Deposit Insurance Corp., said last week that downgrades may compromise bank capital ratios enough that some of the largest institutions will no longer be considered well capitalized."
CNN - "The futile $100M foreclosure fix" (4-8-08)
"Housing counselors are often the last and best line of defense for borrowers facing foreclosure, and the $15 billion housing rescue bill now before the Senate allocates $100 million for foreclosure prevention counseling. More funding is certainly good news for people like Jim Carr, chief operating officer for the National Community Reinvestment Coalition, a non-profit neighborhood advocacy group. He'll use any windfall from this bill to hire more counselors who can hammer out solutions for desperate homeowners and lenders trying to minimize their losses."
Orange County Register - "WaMu to cut 3,000 jobs nationwide, gets $7 billion infusion" (4-8-08)
"Washington Mutual, battered by rising loan delinquencies, said Tuesday it will receive $7 billion in capital from an investment group led by private equity firm TPG and that it will stop doing business with mortgage brokers, reports the Associated Press."
Orange County Register - "Foreclosures seen as O.C.’s hottest-selling homes" (4-8-08)
"As of last Thursday, there were 635 properties listed by agents as 'foreclosures' (typically, bank-owned houses) in escrow vs. 1,060 for sale, or a 'market time' of 1.67 months. Compare that to the countywide total for all homes of 2,285 in escrow (best in 18 months) vs. 15,474 for sale, or a 'market time' of 6.77 months."
Real Estate Journal - "Condo-Hotel BuyersSee Investments Sour" (4-8-08)
"Many buyers purchased the hotel rooms from developers hoping to get paid every time the room was rented. But condo hotels, which account for as much as 10% of all hotel rooms under construction and a much greater percentage in resort markets such as Orlando, Fla., and Las Vegas, are coming back to haunt many of the people who bought the units, the developers that constructed the buildings, and the operators hired to run the hotels."
Monday, April 07, 2008
Bloomberg - "House Lust Isn't to Blame for U.S. Property Funk" (4-7-08)
"McGinn, who recently published a book on the topic, points to a convergence of personal economics and good old-fashioned status-seeking as one of the root causes of the crisis. More likely, it went much deeper, as a combination of the American Dream and a mass amnesia of economic reality took hold."
Bloomberg - "Wasteful $29 Billion Tax Cut Won't Help Housing" (4-7-08)
"the revenue loss due to the foreclosure purchase credit and the new standard deduction would be chicken feed compared with a third provision. More than $25 billion would be handed out to homebuilders over a three-year period in the form of rebates of income taxes paid during the height of the housing boom. The proposal would let homebuilders carry net-operating losses incurred in 2008 and 2009 for four years instead of just two as the tax code now allows."
Reuters - "Investors, not Fed, to blame for crisis-Greenspan" (4-7-08)
"Former Federal Reserve Chairman Alan Greenspan has defended himself from charges that easy U.S. monetary policy created the current credit crisis by inflating a housing bubble, and instead blamed professional investors. In an article in Monday's Financial Times newspaper, Greenspan wrote that the housing bubble which inflated between 2001 and 2006 had not been unique to the United States."
Bloomberg - "Washington Mutual Rises 29% on Possible TPG Support" (4-7-08)
"Washington Mutual Inc., the largest U.S. savings and loan, rallied the most in almost 25 years in New York trading as a group led by David Bonderman's TPG Inc. considers a $5 billion investment in the Seattle-based company. An agreement with the TPG group could be announced within days, said a person familiar with the discussions, who declined to be identified. Washington Mutual, which lost 67 percent of its market value in the past 12 months, needs the funds after reporting more than $3 billion of home-mortgage writedowns and loan losses."
Bloomberg - "Citigroup, Eight Companies to Help Ohio Homeowners" (4-7-08)
"Citigroup Inc., HSBC Finance Corp. and seven other companies agreed to help delinquent homeowners in Ohio avoid foreclosure in the first such accord between a state and home-loan servicers, Governor Ted Strickland said. The companies pledged to make an effort to modify terms on adjustable-rate and subprime mortgages, contact at-risk borrowers as soon as possible, and report progress to the state. The non-binding agreements were reached about five months after Ohio Attorney General Marc Dann issued more than a dozen subpoenas to mortgage companies."
Orange County Register - "O.C. distressed properties for sale up 42% in ‘08" (4-7-08)
"Home market watcher Steve Thomas at Re/Max Real Estate Services in Aliso Viejo reports that the number of O.C. distressed properties (homes listed by agents as foreclosures or short sales) was 5,335 last week, +114 vs. two weeks earlier or a +2.2% change. As a percent of all listed homes for sale, distressed properties were 34.5% of the market last week vs. 33.4% two weeks earlier."
Orange County Register - "WaMu poised to get $5B in cash from TPG" (4-7-08)
"Washington Mutual Inc., the country's largest savings and loan, is close to landing a $5 billion cash infusion from private equity group TPG and other investors, a person familiar with the matter said Monday."
Orange County Register - "O.C. home demand rises for 1st time in 18 months" (4-7-08)
"Deals to buy O.C. existing homes and condos are now above year-ago levels for the first time since Sept. 22, 2005, says the math of Steve Thomas at Re/Max Real Estate Services in Aliso Viejo. As of last Thursday, there were 2,285 deals created in the past 30 days, Thomas’ definition of demand. That’s 159 better (7%) than a year ago."
"McGinn, who recently published a book on the topic, points to a convergence of personal economics and good old-fashioned status-seeking as one of the root causes of the crisis. More likely, it went much deeper, as a combination of the American Dream and a mass amnesia of economic reality took hold."
Bloomberg - "Wasteful $29 Billion Tax Cut Won't Help Housing" (4-7-08)
"the revenue loss due to the foreclosure purchase credit and the new standard deduction would be chicken feed compared with a third provision. More than $25 billion would be handed out to homebuilders over a three-year period in the form of rebates of income taxes paid during the height of the housing boom. The proposal would let homebuilders carry net-operating losses incurred in 2008 and 2009 for four years instead of just two as the tax code now allows."
Reuters - "Investors, not Fed, to blame for crisis-Greenspan" (4-7-08)
"Former Federal Reserve Chairman Alan Greenspan has defended himself from charges that easy U.S. monetary policy created the current credit crisis by inflating a housing bubble, and instead blamed professional investors. In an article in Monday's Financial Times newspaper, Greenspan wrote that the housing bubble which inflated between 2001 and 2006 had not been unique to the United States."
Bloomberg - "Washington Mutual Rises 29% on Possible TPG Support" (4-7-08)
"Washington Mutual Inc., the largest U.S. savings and loan, rallied the most in almost 25 years in New York trading as a group led by David Bonderman's TPG Inc. considers a $5 billion investment in the Seattle-based company. An agreement with the TPG group could be announced within days, said a person familiar with the discussions, who declined to be identified. Washington Mutual, which lost 67 percent of its market value in the past 12 months, needs the funds after reporting more than $3 billion of home-mortgage writedowns and loan losses."
Bloomberg - "Citigroup, Eight Companies to Help Ohio Homeowners" (4-7-08)
"Citigroup Inc., HSBC Finance Corp. and seven other companies agreed to help delinquent homeowners in Ohio avoid foreclosure in the first such accord between a state and home-loan servicers, Governor Ted Strickland said. The companies pledged to make an effort to modify terms on adjustable-rate and subprime mortgages, contact at-risk borrowers as soon as possible, and report progress to the state. The non-binding agreements were reached about five months after Ohio Attorney General Marc Dann issued more than a dozen subpoenas to mortgage companies."
Orange County Register - "O.C. distressed properties for sale up 42% in ‘08" (4-7-08)
"Home market watcher Steve Thomas at Re/Max Real Estate Services in Aliso Viejo reports that the number of O.C. distressed properties (homes listed by agents as foreclosures or short sales) was 5,335 last week, +114 vs. two weeks earlier or a +2.2% change. As a percent of all listed homes for sale, distressed properties were 34.5% of the market last week vs. 33.4% two weeks earlier."
Orange County Register - "WaMu poised to get $5B in cash from TPG" (4-7-08)
"Washington Mutual Inc., the country's largest savings and loan, is close to landing a $5 billion cash infusion from private equity group TPG and other investors, a person familiar with the matter said Monday."
Orange County Register - "O.C. home demand rises for 1st time in 18 months" (4-7-08)
"Deals to buy O.C. existing homes and condos are now above year-ago levels for the first time since Sept. 22, 2005, says the math of Steve Thomas at Re/Max Real Estate Services in Aliso Viejo. As of last Thursday, there were 2,285 deals created in the past 30 days, Thomas’ definition of demand. That’s 159 better (7%) than a year ago."
Bloomberg - "EU Seeks Coordinated G-7 Response to Credit Squeeze" (4-5-08)
"European finance ministers will press their counterparts from the Group of Seven major industrialized nations for greater coordination in battling the credit squeeze that threatens global economic growth, according to the draft of a confidential report prepared for next week's meeting. Central banks and governments around the world have struggled to rein in a surge in the cost of credit that began in August. Banks and securities firms have posted $232 billion in asset writedowns and credit losses stemming from the collapse of the U.S. subprime mortgage market."
Bloomberg - "Bankruptcies Jump 30% in March, Led by Housing-Bust States" (4-5-08)
"The jump in March bankruptcy filings is another indication the U.S. economy is in recession, led by states where the housing boom turned to bust. The more than 90,000 bankruptcy filings in March were the highest since insolvency laws became more restrictive in October 2005, according to statistics compiled from court records by Jupiter eSources LLC. At a daily rate, filings in March were 30 percent above the pace in 2007."
Daily News - "Rules will shield appraisers from lender pressure" (4-5-08)
"In all the chatter these days about mortgage reform, the new rules for appraisers aren't getting a lot of attention. But that issue gained traction after New York Attorney General Andrew Cuomo began investigating allegations of conflicts of interest, fraud and other misconduct - all fallout from the mortgage meltdown. One result is that mortgage giants Freddie Mac and Fannie Mae agreed to cooperate with Cuomo and the Office of Federal Housing Enterprise Oversight in helping regulators tighten home appraisal practices to ensure there is some independence in the process."
North County Times - "Hot deals in midst of real estate bottom" (4-5-08)
"Real estate agents are buzzing: Homes are half-priced. There is a swarm of buyers. The housing market is starting to recover. As proof, agents point to a bevy of offers on several listings. The recovery is being driven by aggressive pricing on cheaper homes, with discounts up to 60 percent off previous sales prices."
"European finance ministers will press their counterparts from the Group of Seven major industrialized nations for greater coordination in battling the credit squeeze that threatens global economic growth, according to the draft of a confidential report prepared for next week's meeting. Central banks and governments around the world have struggled to rein in a surge in the cost of credit that began in August. Banks and securities firms have posted $232 billion in asset writedowns and credit losses stemming from the collapse of the U.S. subprime mortgage market."
Bloomberg - "Bankruptcies Jump 30% in March, Led by Housing-Bust States" (4-5-08)
"The jump in March bankruptcy filings is another indication the U.S. economy is in recession, led by states where the housing boom turned to bust. The more than 90,000 bankruptcy filings in March were the highest since insolvency laws became more restrictive in October 2005, according to statistics compiled from court records by Jupiter eSources LLC. At a daily rate, filings in March were 30 percent above the pace in 2007."
Daily News - "Rules will shield appraisers from lender pressure" (4-5-08)
"In all the chatter these days about mortgage reform, the new rules for appraisers aren't getting a lot of attention. But that issue gained traction after New York Attorney General Andrew Cuomo began investigating allegations of conflicts of interest, fraud and other misconduct - all fallout from the mortgage meltdown. One result is that mortgage giants Freddie Mac and Fannie Mae agreed to cooperate with Cuomo and the Office of Federal Housing Enterprise Oversight in helping regulators tighten home appraisal practices to ensure there is some independence in the process."
North County Times - "Hot deals in midst of real estate bottom" (4-5-08)
"Real estate agents are buzzing: Homes are half-priced. There is a swarm of buyers. The housing market is starting to recover. As proof, agents point to a bevy of offers on several listings. The recovery is being driven by aggressive pricing on cheaper homes, with discounts up to 60 percent off previous sales prices."
Friday, April 04, 2008
Bloomberg - "Treasuries Gain After Economy Loses Jobs, Wage Inflation Slows" (4-4-08)
"Treasuries rose, with 10-year notes gaining the most in two weeks, after a government report showed the economy lost more jobs last month than forecast and wages grew at the slowest pace in almost two years."
The San Diego Union Tribune - "Local office vacancy rate skyrockets" (4-4-08)
"San Diego's office vacancy rate spiked to its highest level since 1996 in the first quarter thanks to a combination of weak demand and new buildings coming to market. Direct vacancy – landlord-controlled office space that's empty – was 15.1 percent countywide, according to a CB Richard Ellis report issued yesterday. That's up from 11.5 percent a year earlier."
Bloomberg - "Lenders Swamped By Foreclosures Let Homeowners Stay" (4-4-08)
"Banks are so overwhelmed by the U.S. housing crisis they've started to look the other way when homeowners stop paying their mortgages. The number of borrowers at least 90 days late on their home loans rose to 3.6 percent at the end of December, the highest in at least five years, according to the Mortgage Bankers Association in Washington. That figure, for the first time, is almost double the 2 percent who have been foreclosed on."
Bloomberg - "U.S. Builders Rise to Highest Since September" (4-4-08)
"U.S. homebuilders rose to the highest in more than six months this week on the prospect that lower prices and interest rates will help the industry recover."
Bloomberg - "U.S. Apartment Rents Rise in First Quarter Amid Housing Slump" (4-4-08)
"The average asking rent for U.S. apartments rose 1 percent in the first three months of 2008, the 24th consecutive quarterly gain, as the U.S. housing slump deterred people from buying homes, according to real estate research firm Reis Inc. San Francisco had the most rapid rental growth at 11.1 percent, followed by San Jose, California, at 8.9 percent, New York at 8.8 percent and Seattle at 7.8 percent, New York-based Reis said today in a statement. The national vacancy rate rose 0.3 percentage point to 5.9 percent."
Orange County Register - "Credit unions too?" (4-4-08)
"Lending data indicates real estate loans delinquent 2 months or more grew from 0.34 to 0.67 percent during 2007. Foreclosed real estate increased 102.2 percent to $331.9 million, and although a marked increase, foreclosures continue to represent a very small .12 percent of total real estate loans. After declining for the last three years, credit card delinquencies were a reported 1.33 percent of total credit card loans at year-end 2007, remaining just below the 1.34 percent level reported in 2003. The total loan delinquency ratio for federally insured credit unions increased from .68 to .93 percent during 2007, a 25 basis point increase."
Orange County Register - "O.C. median home price back at $500,000" (4-4-08)
"DataQuick’s latest report on O.C. home sales puts the median selling price back down at $500,000 for the 22 business days ended March 20. The median crashed up through the half-million mark during local housing’s long upswing in April 2004. This latest median is 22.5% below June ’07’s high of $645,000."
Orange County Register - "Pricing bottom ‘getting close,’ South O.C. agent says" (4-4-08)
"South Orange County real estate blogger Vincent Bindi (pictured right) reported recently what we’ve been hearing from a number of O.C. real estate agents: signs that the local housing market is starting to pick up a tic from the moribund doldrums that hit following the late-summer credit crunch. Specifically, many agents speak of rising escrows amid falling prices, with some bidding wars erupting. Bindi, an agent with Keller-Williams Realty who regularly analyzes South County housing numbers, picked up that trend as well. He cites rising escrows and stable inventories, while projecting that prices will drop about 10% more."
Real Estate Journal - "Judge Authorizes ProbeOf Countrywide's Practices" (4-4-08)
"A federal judge has authorized an in-depth probe of Countrywide Financial Corp.'s mortgage-processing systems by bankruptcy investigators hunting for evidence that the big mortgage lender has systematically abused borrowers."
"Treasuries rose, with 10-year notes gaining the most in two weeks, after a government report showed the economy lost more jobs last month than forecast and wages grew at the slowest pace in almost two years."
The San Diego Union Tribune - "Local office vacancy rate skyrockets" (4-4-08)
"San Diego's office vacancy rate spiked to its highest level since 1996 in the first quarter thanks to a combination of weak demand and new buildings coming to market. Direct vacancy – landlord-controlled office space that's empty – was 15.1 percent countywide, according to a CB Richard Ellis report issued yesterday. That's up from 11.5 percent a year earlier."
Bloomberg - "Lenders Swamped By Foreclosures Let Homeowners Stay" (4-4-08)
"Banks are so overwhelmed by the U.S. housing crisis they've started to look the other way when homeowners stop paying their mortgages. The number of borrowers at least 90 days late on their home loans rose to 3.6 percent at the end of December, the highest in at least five years, according to the Mortgage Bankers Association in Washington. That figure, for the first time, is almost double the 2 percent who have been foreclosed on."
Bloomberg - "U.S. Builders Rise to Highest Since September" (4-4-08)
"U.S. homebuilders rose to the highest in more than six months this week on the prospect that lower prices and interest rates will help the industry recover."
Bloomberg - "U.S. Apartment Rents Rise in First Quarter Amid Housing Slump" (4-4-08)
"The average asking rent for U.S. apartments rose 1 percent in the first three months of 2008, the 24th consecutive quarterly gain, as the U.S. housing slump deterred people from buying homes, according to real estate research firm Reis Inc. San Francisco had the most rapid rental growth at 11.1 percent, followed by San Jose, California, at 8.9 percent, New York at 8.8 percent and Seattle at 7.8 percent, New York-based Reis said today in a statement. The national vacancy rate rose 0.3 percentage point to 5.9 percent."
Orange County Register - "Credit unions too?" (4-4-08)
"Lending data indicates real estate loans delinquent 2 months or more grew from 0.34 to 0.67 percent during 2007. Foreclosed real estate increased 102.2 percent to $331.9 million, and although a marked increase, foreclosures continue to represent a very small .12 percent of total real estate loans. After declining for the last three years, credit card delinquencies were a reported 1.33 percent of total credit card loans at year-end 2007, remaining just below the 1.34 percent level reported in 2003. The total loan delinquency ratio for federally insured credit unions increased from .68 to .93 percent during 2007, a 25 basis point increase."
Orange County Register - "O.C. median home price back at $500,000" (4-4-08)
"DataQuick’s latest report on O.C. home sales puts the median selling price back down at $500,000 for the 22 business days ended March 20. The median crashed up through the half-million mark during local housing’s long upswing in April 2004. This latest median is 22.5% below June ’07’s high of $645,000."
Orange County Register - "Pricing bottom ‘getting close,’ South O.C. agent says" (4-4-08)
"South Orange County real estate blogger Vincent Bindi (pictured right) reported recently what we’ve been hearing from a number of O.C. real estate agents: signs that the local housing market is starting to pick up a tic from the moribund doldrums that hit following the late-summer credit crunch. Specifically, many agents speak of rising escrows amid falling prices, with some bidding wars erupting. Bindi, an agent with Keller-Williams Realty who regularly analyzes South County housing numbers, picked up that trend as well. He cites rising escrows and stable inventories, while projecting that prices will drop about 10% more."
Real Estate Journal - "Judge Authorizes ProbeOf Countrywide's Practices" (4-4-08)
"A federal judge has authorized an in-depth probe of Countrywide Financial Corp.'s mortgage-processing systems by bankruptcy investigators hunting for evidence that the big mortgage lender has systematically abused borrowers."
Thursday, April 03, 2008
NAR - "REALTORS® Say Treasury 'BluePrint' Causes Financial Concern and Controversy" (4-3-08)
"The National Association of Realtors®, in a letter today to U.S. Secretary of the Treasury Henry Paulson, expressed opposition to the 'Blueprint for a Modernized Financial Regulatory Structure,' which would permit banking conglomerates to engage in the commercial activity of real estate brokerage and management, and asked the Treasury to withdraw this proposed rule."
Yahoo - "Bear Stearns Rescue Defended" (4-3-08)
"Federal Reserve Chairman Ben Bernanke and the Bush administration on Thursday defended the decision to rescue Bear Stearns amid questions by lawmakers about why the government was helping Wall Street investment houses but not people on Main Street."
Bloomberg - "Muni Losses May Put Taxpayers on Hook for $7 Billion" (4-3-08)
"On the evening of Jan. 22, Minooka, Illinois, school Superintendent Al Gegenheimer stood in front of the village board and said it had a problem: The district was running out of room to house its 3,700 students. Minooka needed $55 million to build two schools and renovate two others in the town 50 miles (80 kilometers) southwest of Chicago, he said. Two months later, the district sold 10-year tax-exempt bonds at a 4.16 percent yield, 0.8 percentage point more than Treasuries of similar maturity. It's the first time the district sold bonds yielding more than the taxable benchmark Treasury, data compiled by Bloomberg show."
Bloomberg - "Geithner Says Markets Still `Impaired,' Urges Action" (4-3-08)
"New York Federal Reserve Bank President Timothy Geithner said capital markets are still 'substantially impaired' and policy makers and financial industry leaders must 'act forcefully' to stem the crisis. The New York Fed chief also said that the central bank's emergency actions to rescue Bear Stearns Cos. were aimed at halting a crisis that would have caused 'protracted' damage to the economy. Fed Chairman Ben S. Bernanke told lawmakers that while the aid wasn't a Fed bailout of Bear Stearns, it was true that the central bank 'bailed out the markets in general.'"
Bloomberg - "Home Prices Fall in 21 U.S. Cities Amid Foreclosures" (4-3-08)
"Home prices declined in 21 U.S. cities in January, led by Sacramento and Las Vegas, as banks sold foreclosed homes at bargain prices. The price per square foot in Sacramento, the capital of California, dropped 28 percent to $166 from a year earlier, according to a report released today by New York-based Radar Logic Inc., a real estate data company. Las Vegas fell 25 percent to $137 a square foot."
Bloomberg - "Liquidity Won't Fend Off Cannibal Banks" (4-3-08)
"U.S. and U.K. regulators are wasting their time threatening traders who profit from speculation about the deteriorating health of the financial community. The gossips aren't to blame for the demise of Bear Stearns Cos., and they won't be at fault when the next firm goes bang, either. Brokers, futures traders, collateral managers and compliance officers are ranking their counterparties from strongest to weakest, and choosing to stop doing business with whichever company comes bottom. If the same name gets crossed out on every list, it spells game over for the loser -- deserved or not."
Orange County Register - "Not all real estate is dead" (4-3-08)
"Who said real estate is dead? Home builders may be hurting, but several other real estate sectors are enjoying handy returns, based on the latest numbers from the National Association of Real Estate Investment Trusts."
Orange County Register - "Foreclosures to ding borrowers’ credit longer" (4-3-08)
"Fannie Mae, the largest funder of U.S. home loans, recently announced tougher guidelines, including an expansion of how long a foreclosure will hurt someone’s credit. With foreclosures spiking — Orange County saw a record 802 foreclosures in January — this is bad news for a lot of former and current but struggling homeowners."
Orange County Register - "Is the median price a true measure of home values?" (4-3-08)
"In a recent blog post, Zillow.com’s numbers guy, Stan Humphries, analyzed Orange County home sales by quarter for the past two years to see how well changes in the median sales price corresponds to changes in home values. Humphries’ conclusion: not well at all. After dividing O.C. home sales into four groups, or 'quartiles,' from lowest price to highest, Humphries concludes that median prices are influenced by the proportion of sales in each price category, rather than changes in home values"
"The National Association of Realtors®, in a letter today to U.S. Secretary of the Treasury Henry Paulson, expressed opposition to the 'Blueprint for a Modernized Financial Regulatory Structure,' which would permit banking conglomerates to engage in the commercial activity of real estate brokerage and management, and asked the Treasury to withdraw this proposed rule."
Yahoo - "Bear Stearns Rescue Defended" (4-3-08)
"Federal Reserve Chairman Ben Bernanke and the Bush administration on Thursday defended the decision to rescue Bear Stearns amid questions by lawmakers about why the government was helping Wall Street investment houses but not people on Main Street."
Bloomberg - "Muni Losses May Put Taxpayers on Hook for $7 Billion" (4-3-08)
"On the evening of Jan. 22, Minooka, Illinois, school Superintendent Al Gegenheimer stood in front of the village board and said it had a problem: The district was running out of room to house its 3,700 students. Minooka needed $55 million to build two schools and renovate two others in the town 50 miles (80 kilometers) southwest of Chicago, he said. Two months later, the district sold 10-year tax-exempt bonds at a 4.16 percent yield, 0.8 percentage point more than Treasuries of similar maturity. It's the first time the district sold bonds yielding more than the taxable benchmark Treasury, data compiled by Bloomberg show."
Bloomberg - "Geithner Says Markets Still `Impaired,' Urges Action" (4-3-08)
"New York Federal Reserve Bank President Timothy Geithner said capital markets are still 'substantially impaired' and policy makers and financial industry leaders must 'act forcefully' to stem the crisis. The New York Fed chief also said that the central bank's emergency actions to rescue Bear Stearns Cos. were aimed at halting a crisis that would have caused 'protracted' damage to the economy. Fed Chairman Ben S. Bernanke told lawmakers that while the aid wasn't a Fed bailout of Bear Stearns, it was true that the central bank 'bailed out the markets in general.'"
Bloomberg - "Home Prices Fall in 21 U.S. Cities Amid Foreclosures" (4-3-08)
"Home prices declined in 21 U.S. cities in January, led by Sacramento and Las Vegas, as banks sold foreclosed homes at bargain prices. The price per square foot in Sacramento, the capital of California, dropped 28 percent to $166 from a year earlier, according to a report released today by New York-based Radar Logic Inc., a real estate data company. Las Vegas fell 25 percent to $137 a square foot."
Bloomberg - "Liquidity Won't Fend Off Cannibal Banks" (4-3-08)
"U.S. and U.K. regulators are wasting their time threatening traders who profit from speculation about the deteriorating health of the financial community. The gossips aren't to blame for the demise of Bear Stearns Cos., and they won't be at fault when the next firm goes bang, either. Brokers, futures traders, collateral managers and compliance officers are ranking their counterparties from strongest to weakest, and choosing to stop doing business with whichever company comes bottom. If the same name gets crossed out on every list, it spells game over for the loser -- deserved or not."
Orange County Register - "Not all real estate is dead" (4-3-08)
"Who said real estate is dead? Home builders may be hurting, but several other real estate sectors are enjoying handy returns, based on the latest numbers from the National Association of Real Estate Investment Trusts."
Orange County Register - "Foreclosures to ding borrowers’ credit longer" (4-3-08)
"Fannie Mae, the largest funder of U.S. home loans, recently announced tougher guidelines, including an expansion of how long a foreclosure will hurt someone’s credit. With foreclosures spiking — Orange County saw a record 802 foreclosures in January — this is bad news for a lot of former and current but struggling homeowners."
Orange County Register - "Is the median price a true measure of home values?" (4-3-08)
"In a recent blog post, Zillow.com’s numbers guy, Stan Humphries, analyzed Orange County home sales by quarter for the past two years to see how well changes in the median sales price corresponds to changes in home values. Humphries’ conclusion: not well at all. After dividing O.C. home sales into four groups, or 'quartiles,' from lowest price to highest, Humphries concludes that median prices are influenced by the proportion of sales in each price category, rather than changes in home values"
Wednesday, April 02, 2008
NAR - "U.S. Health Care System Must Be Reformed, Say Nine Out of 10 Realtors®" (4-2-08)
"A recently conducted 2008 NAR Health Insurance Coverage survey found that 91 percent of Realtors® believe that the U.S. health care system should be reformed, and 82 percent believe the current health care system is not meeting the needs of most Americans. Nearly a quarter of NAR’s 1.3 million members do not have health care insurance, and for most Realtors® without insurance, the reason is cost."
Mortgage Bankers Association - "Mortgage Applications Decrease In Latest MBA Weekly Survey" (4-2-08)
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 28, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 688.3, a decrease of 28.7 percent on a seasonally adjusted basis from 965.9 one week earlier. On an unadjusted basis, the Index decreased 28.1 percent compared with the previous week and was up 4.8 percent compared with the same week one year earlier."
Bloomberg - "Fed Should Clarify Link to Bear Stearns Assets" (4-2-08)
"When the Federal Reserve brokered a weekend deal last month for JPMorgan Chase & Co. to purchase Bear Stearns Cos. before it collapsed, many of the terms of the agreement were murky. The Fed made it clear it had to cough up $30 billion ($29 billion on the second go-round) for Bear Stearns's 'less liquid assets' to induce JPMorgan Chief Executive Jamie Dimon to sign off on the deal. What was unclear was the Fed's relationship to those assets."
Bloomberg - "Bernanke Says U.S. Economy May Slip Into a Recession" (4-2-08)
"Federal Reserve Chairman Ben S. Bernanke acknowledged for the first time that a U.S. recession is possible because homebuilding, employment and consumer spending will deteriorate. 'It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly,' Bernanke told Congress's Joint Economic Committee today. He also said the Fed's emergency loan to Bear Stearns Cos. followed a March 13 warning by the firm that it would have to file for bankruptcy the next day."
Bloomberg - "Paulson Says Treasury `Flexible' on Housing Measures" (4-2-08)
"Treasury Secretary Henry Paulson indicated the Bush administration is willing to consider congressional plans to stem foreclosures by expanding government guarantees for mortgages."
Bloomberg - "UBS, Lehman Raisings May Signal Rout Is Nearing End" (4-2-08)
"UBS, battered by the biggest writedowns from the collapse of the U.S. subprime mortgage market, announced plans yesterday to seek 15 billion Swiss francs ($14.8 billion) in a rights offer to replenish capital, while New York-based Lehman, the fourth- largest U.S. securities firm, raised $4 billion in a stock sale."
Bloomberg - "Buffett's MidAmerican Says 2007 Net Rose 30 Percent on Rates" (4-2-08)
"Utah, Oregon and Washington approved higher power rates in June, and agreements in Wyoming and Idaho will increase revenue this year, MidAmerican said a filing with the U.S. Securities and Exchange Commission today, which included slides prepared for a conference of fixed-income investors. Sales rose 20 percent to $12.4 billion. MidAmerican acquired PacifiCorp in March 2006 for $5.1 billion from Scottish Power Plc. PacifiCorp accounted for $235 million of MidAmerican's $273 million increase in net income in 2007, according to the filing."
Orange County Register - "Wachovia may ditch Pick-A-Payment loan in 17 markets" (4-2-08)
"Wachovia is considering ending their Pick-A-Payment mortgage loans in 17 California counties that have been hit hard by falling home prices and rising foreclosures, reports the Associated Press."
Orange County Register - "Fed map shows more bad loans in inland Orange County" (4-2-08)
"Orange County has more delinquent subprime loans further from the coast — not a conclusion that will surprise readers but it’s interesting to see on a map."
Orange County Register - "Half of ‘07 low-end O.C. homebuyers are upside down" (4-2-08)
"Zillow.com reports that about half of the Orange County homeowners who bought homes last year at the bottom three-fifths of the price spectrum owe more for their mortgage than their home is now worth. At the top end of the pricing spectrum, 17% of last year’s homebuyers are upside down."
"A recently conducted 2008 NAR Health Insurance Coverage survey found that 91 percent of Realtors® believe that the U.S. health care system should be reformed, and 82 percent believe the current health care system is not meeting the needs of most Americans. Nearly a quarter of NAR’s 1.3 million members do not have health care insurance, and for most Realtors® without insurance, the reason is cost."
Mortgage Bankers Association - "Mortgage Applications Decrease In Latest MBA Weekly Survey" (4-2-08)
"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 28, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 688.3, a decrease of 28.7 percent on a seasonally adjusted basis from 965.9 one week earlier. On an unadjusted basis, the Index decreased 28.1 percent compared with the previous week and was up 4.8 percent compared with the same week one year earlier."
Bloomberg - "Fed Should Clarify Link to Bear Stearns Assets" (4-2-08)
"When the Federal Reserve brokered a weekend deal last month for JPMorgan Chase & Co. to purchase Bear Stearns Cos. before it collapsed, many of the terms of the agreement were murky. The Fed made it clear it had to cough up $30 billion ($29 billion on the second go-round) for Bear Stearns's 'less liquid assets' to induce JPMorgan Chief Executive Jamie Dimon to sign off on the deal. What was unclear was the Fed's relationship to those assets."
Bloomberg - "Bernanke Says U.S. Economy May Slip Into a Recession" (4-2-08)
"Federal Reserve Chairman Ben S. Bernanke acknowledged for the first time that a U.S. recession is possible because homebuilding, employment and consumer spending will deteriorate. 'It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly,' Bernanke told Congress's Joint Economic Committee today. He also said the Fed's emergency loan to Bear Stearns Cos. followed a March 13 warning by the firm that it would have to file for bankruptcy the next day."
Bloomberg - "Paulson Says Treasury `Flexible' on Housing Measures" (4-2-08)
"Treasury Secretary Henry Paulson indicated the Bush administration is willing to consider congressional plans to stem foreclosures by expanding government guarantees for mortgages."
Bloomberg - "UBS, Lehman Raisings May Signal Rout Is Nearing End" (4-2-08)
"UBS, battered by the biggest writedowns from the collapse of the U.S. subprime mortgage market, announced plans yesterday to seek 15 billion Swiss francs ($14.8 billion) in a rights offer to replenish capital, while New York-based Lehman, the fourth- largest U.S. securities firm, raised $4 billion in a stock sale."
Bloomberg - "Buffett's MidAmerican Says 2007 Net Rose 30 Percent on Rates" (4-2-08)
"Utah, Oregon and Washington approved higher power rates in June, and agreements in Wyoming and Idaho will increase revenue this year, MidAmerican said a filing with the U.S. Securities and Exchange Commission today, which included slides prepared for a conference of fixed-income investors. Sales rose 20 percent to $12.4 billion. MidAmerican acquired PacifiCorp in March 2006 for $5.1 billion from Scottish Power Plc. PacifiCorp accounted for $235 million of MidAmerican's $273 million increase in net income in 2007, according to the filing."
Orange County Register - "Wachovia may ditch Pick-A-Payment loan in 17 markets" (4-2-08)
"Wachovia is considering ending their Pick-A-Payment mortgage loans in 17 California counties that have been hit hard by falling home prices and rising foreclosures, reports the Associated Press."
Orange County Register - "Fed map shows more bad loans in inland Orange County" (4-2-08)
"Orange County has more delinquent subprime loans further from the coast — not a conclusion that will surprise readers but it’s interesting to see on a map."
Orange County Register - "Half of ‘07 low-end O.C. homebuyers are upside down" (4-2-08)
"Zillow.com reports that about half of the Orange County homeowners who bought homes last year at the bottom three-fifths of the price spectrum owe more for their mortgage than their home is now worth. At the top end of the pricing spectrum, 17% of last year’s homebuyers are upside down."
Tuesday, April 01, 2008
Yahoo - "Some homes worth less than their copper pipes" (4-1-08)
"Jonathan Osman, a broker in Charlotte, North Carolina, said growing numbers of banks are balking at lending to prospective buyers of foreclosed homes that are stripped of copper pipes and other metals, further depressing housing prices."
Bloomberg - "UBS Says Ospel Resigns After Writedowns Lead to Loss" (4-1-08)
"UBS AG, battered by the biggest writedowns from the collapse of the U.S. subprime mortgage market, reported a 12 billion-franc ($11.9 billion) first-quarter loss and said Chairman Marcel Ospel will step down."
Bloomberg - "Construction Spending in U.S. Fell 0.3% in February" (4-1-08)
"Spending on U.S. building projects fell in February for a fifth consecutive month as the housing recession dragged on and construction of offices and utility plants declined. The 0.3 percent decrease, less than economists forecast, followed a revised 1 percent drop in January that was smaller than initially reported, the Commerce Department said today in Washington. Building of private non-residential projects including offices declined for a third straight month."
Bloomberg - "Blackstone Raises Record $10.9 Billion Property Fund" (4-1-08)
"Blackstone Group LP, manager of the world's biggest leveraged buyout fund, raised a record $10.9 billion to invest in property as the U.S. housing slump pushes global real-estate prices lower."
Bloomberg - "Thornburg Mortgage Gains After Averting Bankruptcy" (4-1-08)
"Thornburg Mortgage Inc., the 'jumbo' mortgage lender teetering on the edge of bankruptcy for a month, gained 20 percent in New York trading after agreeing to a $1.35 billion rescue that leaves current investors with a fraction of the company's stock. Thornburg added 24 cents to $1.45 at 4 p.m. in New York Stock Exchange composite trading. The company received $1.15 billion from the sale of common stock, warrants and senior subordinated notes and will get $200 million more after the last parts of the transaction are completed, the Santa Fe, New Mexico- based company said late yesterday in a statement."
CNN - "Senate reaches foreclosure relief compromise" (4-1-08)
"A legislative effort to address the nation's home foreclosure crisis moved forward in the Senate Tuesday as Democratic and GOP leaders defused a potential filibuster. Majority Leader Harry Reid, D-Nev., and GOP Leader Mitch McConnell of Kentucky agreed to bring a bipartisan bill to the floor as early as Wednesday instead of a Democratic plan that stalled a month ago."
Orange County Register - "U.S. vacation-home sales plummeted most in ‘07" (4-1-08)
"Lawrence Yun, NAR chief economist, said in a statement that the findings suggest different cycles for each of the sectors over the past two years. 'Investment-home sales declined sharply in 2006 as speculators disappeared, leaving the market to serious buyers, with the pattern continuing in 2007,' he said. 'Vacation-home sales rose to a new record in 2006 because there was a pent-up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years.'"
Orange County Register - "O.C.’s high-end home values holding up better" (4-1-08)
"Zillow.com reports this week that the median price of an Orange County home fell 12.1% in the fall of 2007 vs. the same quarter of 2006. But pricier home values held up better in Zillow’s fourth quarter figures for O.C. than did the low end. While this trend is not new for O.C., local data run contrary to what Zillow’s figures show for the nation as a whole, with the low end of the U.S. housing market holding up better than the high end."
"Jonathan Osman, a broker in Charlotte, North Carolina, said growing numbers of banks are balking at lending to prospective buyers of foreclosed homes that are stripped of copper pipes and other metals, further depressing housing prices."
Bloomberg - "UBS Says Ospel Resigns After Writedowns Lead to Loss" (4-1-08)
"UBS AG, battered by the biggest writedowns from the collapse of the U.S. subprime mortgage market, reported a 12 billion-franc ($11.9 billion) first-quarter loss and said Chairman Marcel Ospel will step down."
Bloomberg - "Construction Spending in U.S. Fell 0.3% in February" (4-1-08)
"Spending on U.S. building projects fell in February for a fifth consecutive month as the housing recession dragged on and construction of offices and utility plants declined. The 0.3 percent decrease, less than economists forecast, followed a revised 1 percent drop in January that was smaller than initially reported, the Commerce Department said today in Washington. Building of private non-residential projects including offices declined for a third straight month."
Bloomberg - "Blackstone Raises Record $10.9 Billion Property Fund" (4-1-08)
"Blackstone Group LP, manager of the world's biggest leveraged buyout fund, raised a record $10.9 billion to invest in property as the U.S. housing slump pushes global real-estate prices lower."
Bloomberg - "Thornburg Mortgage Gains After Averting Bankruptcy" (4-1-08)
"Thornburg Mortgage Inc., the 'jumbo' mortgage lender teetering on the edge of bankruptcy for a month, gained 20 percent in New York trading after agreeing to a $1.35 billion rescue that leaves current investors with a fraction of the company's stock. Thornburg added 24 cents to $1.45 at 4 p.m. in New York Stock Exchange composite trading. The company received $1.15 billion from the sale of common stock, warrants and senior subordinated notes and will get $200 million more after the last parts of the transaction are completed, the Santa Fe, New Mexico- based company said late yesterday in a statement."
CNN - "Senate reaches foreclosure relief compromise" (4-1-08)
"A legislative effort to address the nation's home foreclosure crisis moved forward in the Senate Tuesday as Democratic and GOP leaders defused a potential filibuster. Majority Leader Harry Reid, D-Nev., and GOP Leader Mitch McConnell of Kentucky agreed to bring a bipartisan bill to the floor as early as Wednesday instead of a Democratic plan that stalled a month ago."
Orange County Register - "U.S. vacation-home sales plummeted most in ‘07" (4-1-08)
"Lawrence Yun, NAR chief economist, said in a statement that the findings suggest different cycles for each of the sectors over the past two years. 'Investment-home sales declined sharply in 2006 as speculators disappeared, leaving the market to serious buyers, with the pattern continuing in 2007,' he said. 'Vacation-home sales rose to a new record in 2006 because there was a pent-up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years.'"
Orange County Register - "O.C.’s high-end home values holding up better" (4-1-08)
"Zillow.com reports this week that the median price of an Orange County home fell 12.1% in the fall of 2007 vs. the same quarter of 2006. But pricier home values held up better in Zillow’s fourth quarter figures for O.C. than did the low end. While this trend is not new for O.C., local data run contrary to what Zillow’s figures show for the nation as a whole, with the low end of the U.S. housing market holding up better than the high end."
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