Friday, September 04, 2009

Bloomberg - "Capmark Distress May Signal Bank Failures Topping 100" (9-4-09)

Capmark Financial Group Inc.’s possible collapse may signal a new wave of real estate losses for banks -- this one tied to business property -- that could push the year’s tally of failures past 100."

Bloomberg - "Fannie, Freddie Avoid Delisting as Stocks Triple" (9-4-09)

The NYSE notified Freddie Mac yesterday that a review as of Aug. 31 showed its average share price for the preceding 30 trading days was above $1, meeting minimum listing requirements, according to a statement today from the McLean, Virginia-based company. Washington-based Fannie Mae said separately that it was also notified by the NYSE yesterday of its compliance."

Wall Street Journal - "Troubles For 'Prime' Borrowers Intensify" (9-4-09)

"The mortgage-delinquency rate among so-called subprime borrowers reached 25% in the first quarter but appears to be leveling off, rising only slightly in the second quarter. The pace of delinquencies for prime borrowers is accelerating. Since prime loans account for 80% of U.S. bank exposure to mortgages and credit cards, these losses could ultimately exceed those from weaker borrowers."

Inman - "Chips down, Fed plays waiting game" (9-4-09)

"The most mighty gorilla of all data, first-Friday payroll data for the prior month, arrived today right on forecast: 216,000 jobs lost in August, and 49,000 more shaved from summer estimates. The "Green Shooter" economic optimists think it's terrific news, insisting that a smaller-loss trend will cross over to job growth toward the end of this year."

Inman - "MLS must admit any licensed broker" (9-4-09)

"The Department of Justice sued Columbia, S.C.-based Consolidated Multiple Listing Service Inc. (CMLS) in May 2008. The antitrust suit alleged the broker-operated MLS's membership restrictions and rules hindered discount and 'fee-for-service' brokers from competing with traditional, full-service companies that allegedly controlled CMLS's board. At least 20 brokers testified that CMLS's rules either excluded them from the Columbia market or impeded their competition, the Justice Department said."

Inman - "APR not best gauge of mortgage costs" (9-4-09)

"Consumers shopping for a mortgage are frequently confronted with having to make a choice between complex alternatives. For example, they can select a fixed-rate mortgage (FRM) on which the rate is fixed at 5 percent for 30 years, or an adjustable-rate mortgage (ARM) on which the rate of 4.375 percent holds only for five years, after which it changes with the market."

Inman - "Jumping off the condo bandwagon" (9-4-09)

"About the only condo sales moving quickly to fruition these days are all-cash deals. Maybe that's because NAR also reports that the median existing condo price had deflated to $173,800 in May, a 21.9 percent drop from a year earlier. That means much more condo product appears to be cheap enough to self-finance from a middle-class investor perspective, i.e., a buyer with stabilized employment, savings and who didn't lose money speculating in the real estate markets between 2002 and 2007."

Orange County Register - "Construction unemployment doubles" (9-4-09)

"For August, the Bureau of Labor Statistics found 16.5% of U.S. construction worker unemployed vs. 8.2% in August 2008. Slice of good news — 16.5% is lowest since December. At the building boom, construction worker unempoyment was 4.5% nationwide in October 2006."
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