Posts Tagged ‘national association of realtors’
Monday, November 16th, 2009
During a speech to the National Association of Realtors in San Diego, FHA Commissioner David Stevens said his agency is not headed for the same fate as Fannie Mae, Freddie Mac or the subprime sector. Concerns about the FHA’s financial well being were raised last week when it was revealed in an independent audit that the agency’s funds were below legal guidelines.
The Commissioner sought to minimize these concerns, reporting the agency had $31 billion in capital – an increase of $3.5 billion from a year ago.
Stevens went on to say that the FHA is “the only participant in home financing services in the U.S. economy that hasn’t needed a bailout, hasn’t needed (funds from the government’s Troubled Asset Relief Program), hasn’t needed special assistance and is still completely self-sustaining.”
The AP reports the FHA has insured almost 25 percent of all new loans made in 2009. Eighty-percent of these loans represent first time home buyers.
Stevens rejected comparisons between the FHA and the subprime market. “Nothing could be further from the truth,” he said, stressing the FHA has far more stringent underwriting guidelines for the loans it insures.
As the unemployment rate has risen, so have FHA’s losses. According to the Mortgage Bankers Association, approximately 17 percent of FHA borrowers are at least one payment behind or in foreclosure. This compares with 13 percent for all loans.
The FHA does not make loans. It insures against default, taking much of the risk away from lenders. FHA loans have grown in popularity in recent years as credit markets have tightened up. The agency’s 203K rehab loan is also growing in popularity as more first-time home buyers purchase foreclosures.
DHW asks: Do you think the FHA is at risk of needing a government bailout?
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Posted in 203k, 203k lenders, 203k mortgage, 203k rehab loan, 203k streamlined, FHA, Housing Article, david stevens, fha 203 k, fha 203k, fha 203k lenders, fha 203k loan, fha 203k mortgage, fha 203k mortgage loans, first time home buyer, first time home buyers, first time homebuyers, foreclosure, freddie mac, homebuyers, realtor, realtors, rehab loan, subprime | 1 Comment »
Saturday, November 14th, 2009
Lawrence Yun, chief economist for the National Association of Realtors, predicted on Friday that home prices will rise in 2010. If his prediction holds true, home prices will see their first increase in four years.
Yun pointed to the current price-income ratio of 2.4 as evidence of pent-up demand in the market. The price-income ratio accelerated from a norm of 2.6 in 1984-2001 to 3.3 in 2005. This means the price-income ratio has dipped below its pre-bubble rate.
The housing tax credit extension is also seen as a contributing factor to rising homes prices next year.
DHW asks: Do you think home prices will rise in 2010?
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Tags: $6500, $8000, $8000 tax credit, 2010, 6500 tax credit, 6500 tax credit extension, 8000 tax credit extension, buyers, extension, first time buyers, first time homebuyers, home buyers, home prices, home sales, home seller, home values, homebuyers, Housing, housing credit extension, housing news, housing prices, housing report, national association of realtors, price income ratio, Real Estate, real estate news, realtors, Sales, seller, tax credit, tax credit extension, us home prices, worker home ownership and business assistance act of 2009, worker homeownership and business assistance act of 2009
Posted in $6500, $8000, H.R. 3548 Worker Homeownership and Business Assistance Act of 2009, Housing, Housing Article, home prices, home sales, home value, housing tax credit | No Comments »
Wednesday, November 11th, 2009
In a CNBC interview this morning, Realogy CEO, Richard Smith, called on FHA to increase its minimum required down payment of 3.5%. Mr Smith suggested the ‘risk profile’ will have to change to stave off foreclosures. This argument only perpetuates the myth that those who put less money down are somehow less attached to their home than those who put down a significant amount. Mr Smith should have taken the opportunity to call on the administration and Congress to cure the real problems that cause mortgage delinquencies.
The Urban Institute, a Washington D.C. based think tank, issued a study recently that revealed some interesting, though not surprising, data. Those who put little or no money down tend to be more poor than those who put, say, 20% down. They are also less likely to have health insurance. Someone who has health insurance is more likely to miss less work due to an illness than someone who has no insurance. This is only one example cited in the Institute’s report.
Although many pundits, including Mr Smith, suggest the nation’s recovery is tied to housing, it is not. It is tied to job creation. You cannot have a 10% unemployment rate and expect to have a stabilizing housing market.
Reology is the world’s largest brokerage operator. They own Coldwell Banker, Century 21, Better Homes and Gardens Real Estate and ERA.
DHW asks: Do you think the FHA should increase its minimum required down payment?
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Posted in 203k, Editorial, FHA, Housing Article, foreclosure, health insurance, realogy | 1 Comment »
Tuesday, November 10th, 2009
Critics of the Housing Tax Credit were quieted, if only briefly, when the National Association of Realtors (NAR) released data for third quarter home sales. According to the trade group, home sales increased by nearly 6% over this same time last year. Despite the spike in sales, prices have fallen more than 11% during the same period. The U.S. median existing single-family price for the third quarter was $177,900.
Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.
NAR chief economist, Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.
DHW asks: Do you see a bottom to the housing market?
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Posted in Housing Article, home sales, housing tax credit, realtors | 1 Comment »
Friday, November 6th, 2009
President Obama signed bill H.R. 3548, extending unemployment benefits for all states and extending the $8,000 Tax Credit for first home buyers. The bill also creates a $6,500 tax credit for those home buyers who have owned their current primary residence for at least 5 years. See ‘Housing Tax Credits’ for more details. You can also see how congress voted.
Remember: The $6,500 tax credit took effect when the President signed the bill.
DHW asks: Will this encourage you to buy a home?
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Posted in $6500, $8000, Housing Article, President Obama, housing tax credit, housing tax credits | No Comments »
Friday, November 6th, 2009
President Obama is scheduled to sign bill H. R. 3548, extending unemployment benefits to all states. When signed, the bill will also extend the $8,000 tax credit for first time home buyers as well as initiate a new $6,500 tax credit for those home buyers who have owned a primary residence for at least 5 years.
On Thursday, the National Association of Realtors released detailed guidelines and a Frequently Asked Questions brochure for the tax credits. The new $6,500 tax credit takes effect the day the President signs the bill.
DHW asks: Do you think the new $6,500 tax credit will help boost real estate sales?
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Posted in $6500, $8000, H.R. 3548 Worker Homeownership and Business Assistance Act of 2009, Housing Article, housing credit extension guidelines, housing tax credit, housing tax credits, unemployment | No Comments »
Thursday, November 5th, 2009
The House of Representatives overwhelmingly approved an extension of unemployment benefits to all 50 states, and the popular $8,000 tax credit to first time home buyers. The measure also allows a $6,500 tax credit for home buyers who have owned their primary residence for at least 5 years. President Obama is expected to sign the bill as early as Friday.
The National Association of Realtors released detail guidelines and a Frequently Asked Questions brochure for the Tax Credits on Thursday.
DHW asks: Will the Tax Credit extension encourage you to buy a home?
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Monday, November 2nd, 2009
The National Association of Realtors reported that its Pending Home Sales Index was up 6.1% in September to 110.1 from a reading of 103.8 in August.
First-time buyers taking advantage of the $8,000 tax credit are believed to be behind the spike in sales. The group says sales are up 21.2% year over year.
DHW asks: Do you see sales picking up in your area?
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Posted in Housing Article, first time home buyer, first time home buyers, home sales, pending home sales index, pending sales, realtors | No Comments »