News Alerts, Sept. 13, 2013, Evening Edition, #RealEstate +

Linking ≠ endorsement. Enjoy and share:

  1. 'Commercial developers gone wild' in the Big Easy | Inman News

    With levees, roads and other infrastructure restored with the help of $120.5 billion in federal aid, commercial real estate transactions in New Orleans were up 41 percent from 2011 to 2012, to $424.7 million, Bloomberg Businessweek reports, citing data from Real Capital Analytics.

    … James Perry, executive director of the Greater New Orleans Fair Housing Action Center, tells Bloomberg that eight years after Hurricane Katrina hit, African-American neighborhoods are still "suffering dramatically and are nowhere near recovery." Most investment has been "in the neighborhoods that have suffered the least damage, and they tend to be the neighborhoods with the highest income and the neighborhoods that are the least diverse."

    Repairing and upgrading levees, roads, and other infrastructure where mostly those who are the best off benefit doesn't sound like sound economics to us, nor compassionate or socially responsible.

    Read the source article … elopers-gone-wild-in-the-big-easy/

  2. QRM proposal caters to private sector | 2013-08-29 | HousingWire

    … sources cited in a Bloomberg article noted the Federal Housing Finance Agency is planning to reduce conforming loan limits this October, which would increase the size of the private label market and be a positive for securitizers….

    The originally proposed 20% downpayment requirement could have reduced the volume of mortgage insurance business once the GSEs were no longer in conservatorship — assuming they had a capital requirement of below 5% at that time — a benign rule eliminates this risk, KBW analysts pointed out.

    The article states that "No downpayment requirement spells private capital comeback" but didn't address it directly. Christina Mlynski writes, "The originally proposed 20% downpayment requirement could have reduced the volume of mortgage insurance business once the GSEs were no longer in conservatorship — assuming they had a capital requirement of below 5% at that time — a benign rule eliminates this risk, KBW analysts pointed out."

    She writes, "Under the Dodd-Frank bill, mortgage securitizers would be required to hold 5% of the credit risk of securitization if the mortgages did not meet a certain standard of quality, which would make them QRM."

    We are left to assume that the suggested rule goes from 20% to zero. That's a huge difference. The down payment drops to zero, but does the 5% skin-in-the-game remain?

    Read the source article … 1-qrm-proposal-caters-to-private-sector

  3. Potential buyers can't afford peak prices at higher interest rates » OC Housing News

    He's not buying into the mainstream banking-news.

    They will continue to follow their current policies of delaying foreclosure and restricting MLS inventory until that no longer works for them. One by one, markets will hit the affordability ceiling, and appreciation will grind to a slow crawl — punctuated by air pockets as mortgage rates continue their volatile rise. …

    Further, the longer this goes on, the less control they'll have over the market. Those borrowers who do have amortizing loans will pay them down, and the percentage of remaining bad loans may become too small to exert such a strong influence over supply as they do today. Lenders may find themselves undercut by a recovering organic sales market long before peak prices are reached. If that happens, lenders will have to finally take the write downs on their bad loans, foreclose on the squatters, and recycle those legacy loan properties back into the market.

    Don't hold your breath. That won't happen until the banks have no other options.

    Read the source article … buyers-cant-afford-peak-prices-at-higher -interest-rates

  4. How a Cash-out Refinance Can Increase Returns | Invest Four More

    Make sure the houses you purchase are bought below market and it will make a future cash out refinance much easier. Make sure your payments not increase so much that your are no longer seeing positive cash flow every month.

    We'll add to watch out for rising vacancy rates in the local area due to any changes: large employers leaving the area, speculators overbuilding rentals, new or planned environmental hazards, enlarged flood zone, or any other reason. Due diligence is important.

    The higher your leverage, the higher your payments, the less margin for rent-rate error you'll have. All other things being equal, anything that will drop the rent rate will squeeze your cash flow.

    Read the source article … h-refinance-can-increase-returns/

  5. Housing Recovery Still Faces Choppy Waters – Daily News Article –

    (Registration required to access their archive)

    "The outlook for 2014 and beyond is predicated on the economic recovery boosting household formations from their recent subdued pace," writes Muoio [Peter Muoio, managing director, Auction com Research]. "If this does not occur, housing demand will be weaker than current consensus estimates."

    Read the source article … nal/multifamily/Housing-Recovery-Still-F aces-Choppy-Waters-337297.html

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