Friday, March 13, 2009

CBIA - "California New Home Market Continued at a Crawl in January, CBIA Announces" (3-13-09)

"Clearly demonstrating the need for the state and federal tax credits that were enacted in February, the pace of home sales at California new-home communities continued to crawl during January, the California Building Industry Association reported today. Robert Rivinius, CBIA’s President and CEO, said anecdotal reports for the first two weeks of March – after the $10,000 state tax credit for the purchase of a newly built home went into effect – indicate a jump in sales, and said he hopes the dismal sales figures from January mark the bottom of the current housing cycle."


Reuters - "BofA seeks more jumbo mortgages: report" (3-13-09)

"Bank of America Corp is seeking to produce more 'jumbo' mortgages, which can range from $417,000 in most areas to as much as $729,750, Barbara Desoer, the bank's head of mortgage, home equity and insurance services told Bloomberg in an interview."

Bloomberg - "U.S. Household Net Worth Had Record Decline in Fourth Quarter" (3-13-09)

"
U.S. household wealth fell by a record $5.1 trillion from October to December, almost twice the decrease in the previous quarter, as home values and stock prices plunged, Federal Reserve figures showed."

Bloomberg - "Fed Program to Spur Loans May Start With Few Deals" (3-13-09)

"
The Federal Reserve’s program to revive the market for securities backed by consumer loans may start with just a handful of deals, according to participants in the preparations, delaying its prospects of easing the credit crunch. Today, the Fed delayed by two days the March 17 deadline for submissions of proposed packages of debt that investors can buy with Fed financing. No agreements have been announced yet for proposed securities. Brokers and investors have had difficulty agreeing over contract terms for the Term Asset-Backed Securities Loan Facility, the people said."

CNN - "One reason you can't get a mortgage" (3-13-09)

"The main tool in the appraiser's kit is the sale prices of homes in the area. If they can find similar houses nearby in similar condition that sold recently for, say, $300,000, they can assume that the home they are appraising is worth a comparable amount. But with sales volume falling, there are fewer homes with which to compare. In fact, sales of new homes crashed in January to the lowest level in 45 years, and existing home sales fell to a 12-year low."

Bloomberg - "Regulators ‘Working Hard’ to Cut Mortgage Rates, Lockhart Says" (3-13-09)

"
Federal Housing Finance Agency Director James Lockhart, who oversees mortgage-finance companies Fannie Mae and Freddie Mac, said he is 'working hard' with other federal regulators to push home-loan interest rates down"

Bloomberg - "Bank of America Says ‘Thank Goodness’ for Countrywide" (3-13-09)

"
Bank of America Corp.’s mortgage- origination business, the largest in the U.S., is booming after the purchase of Countrywide Financial Corp. and as lower loan rates push a wave of refinancing, the unit’s chief said."

Los Angeles Times - "California budget faces new $8-billion shortfall" (3-13-09)

"The state budget package that Gov. Arnold Schwarzenegger signed last month to fill California's giant budget hole has already fallen out of balance, with plummeting revenue creating a new shortfall of $8 billion in just the few weeks since the spending plan was passed, the Legislature's chief budget analyst said in a report this morning."

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