itself for protracted negotiations with the United States over
undeclared funds stowed by U.S. citizens in Swiss offshore bank
accounts,...
Sunday, August 5, 2012
Swiss brace themselves for lengthy negotiations over US tax deal
ZURICH, Aug 5 (Reuters) - The Swiss government is bracing
itself for protracted negotiations with the United States over
undeclared funds stowed by U.S. citizens in Swiss offshore bank
accounts,... 
itself for protracted negotiations with the United States over
undeclared funds stowed by U.S. citizens in Swiss offshore bank
accounts,...
Vivendi's grandpa gunman loads the last bullet
PARIS, Aug 5 (Reuters) - Vivendi has called on
72-year-old chairman Jean-Rene Fourtou, who saved the group from
bankruptcy a decade ago, for one last service: to write what
could be the once-proud French telecom-to-entertainment group's
closing chapter. 
72-year-old chairman Jean-Rene Fourtou, who saved the group from
bankruptcy a decade ago, for one last service: to write what
could be the once-proud French telecom-to-entertainment group's
closing chapter.
U.S. submits new request to Swiss on alleged tax cheats
ZURICH (Reuters) - The United States has submitted a fresh request to Switzerland for information on former clients of Credit Suisse suspected of cheating on their U.S. taxes, after an earlier... 
Source: http://feeds.reuters.com/~r/news/wealth/~3/bkhbjY960Bk/us-swiss-tax-request-idUSBRE8720UK20120803
Chicago Illinois Mortgage Rates Week in Review for the Week Ending 06/29/2012
The big news was out of Europe. Again. And with new money flowing into the banks of the hardest hit economies, disaster is averted. Again. This seems a lot like Deja Vu, a feeling we have been here before. But it may be different this time. Again. The European Union met for another economic summit [...]
Qatar Telecom unit agrees $406 mln tower deal with Tower Bersama
DUBAI, Aug 5 (Reuters) - Qatar Telecom unit
Indosat has concluded a sale and leaseback agreement
worth $406 million with Tower Bersama Infrastructure
(TBIG), the Qatari firm said in a statement on Sunday. 
Indosat has concluded a sale and leaseback agreement
worth $406 million with Tower Bersama Infrastructure
(TBIG), the Qatari firm said in a statement on Sunday.
Saturday, August 4, 2012
LOS Primer; VA Loan Changes Coming? Appraisers to Have Comp Set in Stone? San Bernardino Bankrupt
That commercial sector is rockin' and rollin', up 25% for the 2nd quarter from a year ago. Granted, most of that was due to increases in originations for retail and hotel properties. The MBA noted that, "The increase included a 56% increase in the dollar volume of loans for retail properties, a 22% increase for hotel properties, a 19% increase for multifamily properties, a 15% increase for office properties, an 11% increase in health care property loans. These gains offset a 5% decrease in industrial property loans." Here you go.
Remember New Century? Formed in 1995 from some folks from Option One, it fell into bankruptcy during the first half of 2007. Reuters reported that the Public Employees' Retirement System of Mississippi led a group of investors in a lawsuit against Goldman Sachs Group in which they claimed they were misled by the bank into purchasing mortgage securities from New Century Financial, which went bankrupt in 2007. Goldman has agreed to settle the suit by paying $20 million to $21.3 million to investors, depending on whether a Dutch pension fund decides to join the class action suit. Goldman will pay another $5.3 million in legal fees and expenses.
Whether it is a yellow pad, or a highly complex vendor-generated program, every originator needs a way to track his or her pipeline. But LOS (Loan Origination Software) is a tricky subject. "Rob, I've used excel in the past to compare loan options, our LOS doesn't really do a very good job of selling the client on their best solution. Our company recently said that we can't use tools that we create ourselves, and they want to approve any client facing materials. Why is that? What are your thoughts on presenting loan options to clients?"
I am going to preface this by saying that I am not an expert in LOS, but I know how it fits in with the industry. Lenders are responsible for the actions of their loan officers, and logical or mathematical mistakes could put your company at risk. Lenders are learning from the financial planning industry, and in that industry the company provides the platform or solution that the financial advisor uses for asset management. Having loan officers using home grown solutions creates a real headache if a future client presentation needs to be reviewed by a compliance officer in an audit, or legal issue. In other words I think you'll see in the future that most companies provide the liability management tools for their loan officers, just like the big financial planning firms have for years. There's too much risk to you and your company using home grown solutions.
A LOS conversion is one of the most important projects a mortgage company can undertake. The advent of the hosted platforms, where a low initial investment can get a client onto their "dream" software in a very short time, can lead to flawed implementations and ongoing reconfiguration efforts. There is a low barrier of entry for vendors offering new systems, and "in the old days" mortgage companies only had to consider the cost of the software (licensing and maintenance costs are not cheap), cost of the hardware (upgrading software also meant upgrading servers which required pouring money into a diminishing asset), and the cost of the implementation (IT guys' time isn't cheap). A mid-sized lender could easily spend 9-12 months on implementations with a minimum investment of $500k.
Today, things are different. Bankers can get access to excellent software through a hosted platform for a minimal investment. But it still takes time, and experts will tell you the more time the better. It would be a mistake to think that a low cost, hosted platform, with a pay as you go formula leads to a successful implementation. Hosted or non-hosted implementations both require a detailed project plan and manager to lead all efforts. Until recently this has been the IT director, but with the hosted platform, their value is somewhat minimized to simply obtaining a strong internet connection and installing the software to desktops. These implementations now require a "mortgage mind" who also understands technology so it can be customized to match the proper workflow. You don't want to implement something that the LO's can't or won't use, or rush through it, trying to meet that 90-day deadline, and miss out learning (and teaching the LO's) about the "bells and whistles" a system offers. It seems that a lot of functionality goes unnoticed or under-utilized as nobody ever took the time to build a holistic workflow within the LOS from the start. The lack of a true implementation manager who "gets it" leads to inefficient and manual processes, taken from the old LOS, and inserted into the new.
It seems that most originators are looking at new LOS, because they've outgrown or are unhappy with it, or have just added new LOS. (Take a poll some time with a bunch of lenders in the room.) The LOS should be a game changer for every firm, allowing for a streamlined, user-friendly origination process. It should provide the engine needed to support current and future volume, eliminate manual processes through automation, eliminate the need for tracking spreadsheets, and allow enforcement of corporate policies in today's compliance/regulatory environment.
How long does this take? Banks and other lenders need to invest in a workflow analysis, a thorough decision making process, a strong testing plan for the new LOS and an in-depth migration plan. If you think you can roll one out successfully, given the planning and analysis, in a month or two, it is highly unlikely. Really breaking down and understanding underwriting and processing is 30 days alone, secondary and post-closing is another 30, and there's still sales, QC, accounting, testing, training, etc.
There are dozens of systems out there, and I am not going to list every one. But one of the more popular solutions that is gaining a lot of traction in the industry is the Borrow Smart sales presentation system at Mortgage Success Source. As I mentioned, I am no expert, but I've seen it myself, and it's designed for the loan officer to sell more while offering greater protection to the company. Overall, it could increase LO conversion rates, and that's a win/win for you and your company. Contact Bill Bodnar, bbodnar@mssllc .com for a demo. Or contact Len Tichy at STRATMOR - he makes it his job to keep up on these things: len.tichy@stratmorgroup .com.
Huh? They're changing the VA program? Well, here's something else for us to be concerned about.
And what about appraiser fees - why should LO comp be so regulated, and appraiser comp not? Change could be in the wind. (Thanks to Brian Coester with Coester Valuation Management Service for sending this.)
On to something almost as much fun, like bankruptcies. Ally Financial swung to a loss (almost $900 million) in the second quarter as its mortgage unit Residential Capital limped through bankruptcy. Ally took a $1.2 billion charge from placing ResCap into bankruptcy in May, and reports indicate that Berkshire Hathaway replaced Ally as the stalking horse bidder on the failed mortgage unit's loan portfolio. ResCap aside, the Ally mortgage unit originated $5.9 billion in residential mortgages during the quarter versus $12.3 billion in last year's quarter - 82% of that was refinances. And for something near and dear to every CEO's heart, Ally holds $124 million in reserves for repurchases and has roughly $82 million in buyback claims outstanding as of June 30.
Along the bankruptcy lines, the Southern California city of San Bernardino (pop. 200,000) declared Chapter 9 bankruptcy yesterday, joining Stockton (pop. 300,000) and Mammoth Lakes (pop. 8,000). They, like other places in the U.S., have been hit by the slow economy and by huge pension and government service obligations. On the other side of the income statement, property tax revenues have also declined due to dropping values. (Mammoth Lakes sought protection July 2 after a property developer won a $43 million court judgment against the resort town. Experts say this filing should not be lumped in with the other two California municipal bankruptcies since it was an unusual circumstance.) The County of San Bernardino, along with the cities of Fontana and Ontario, has been in the news lately due to considering using eminent domain as a way to seize non-agency mortgages out of pools - something that would set a dangerous precedent for the securitization business.
Taxes are a problem for everyone. "I've got the IRS auditing my company right now (I know, how pleasant). In the state of Virginia business performed at ANY location mandates a license, so I reimburse our employees for their home office expenses to the tune of $1500 per month, because they regularly conduct business at home. This was determined to be the cost per square foot if we opened our own office nearby. The IRS is claiming that we can't deduct for home office reimbursement even if it is mandated by the state. They say that we should only be allowed to reimburse them for the license fee of $150. The auditor is saying, 'No documentation was provided substantiating that payment to employees for a home office is a common or customary expense of the mortgage industry'. So the question is: Anyone else have experience with paying for home offices or dealing with the IRS over this issue? Or any blog I can turn to for others in this scenario?" Write to Robert Lee at rlee@1nmc .com.
After much-ado-about-nothing, the Federal Open Market Committee did not take any easing action at its current meeting. The committee made some small changes to its statement that are consistent with a dovish bias yet remaining in watch-and-wait mode, and indicated they will "closely monitor incoming information" and "will provide accommodation as needed." We have nearly a month and a half until the next meeting on September 13, and plenty of economists think things may weaken further before that, which will prompt more Fed action. But do more asset & MBS purchases really spur the jobs market or the economy?
Now everyone can wait until tomorrow's jobs data, with Non-farm Payroll expected to come in around +100k. Unfortunately for the current administration and the economy, +100k does not help reduce unemployment. And looking at Europe, the suspense will finally "end" today when ECB president Mario Draghi sits down before reporters and outlines a plan to save Europe. And once again the markets and the media have elevated a singular European event, billing it as a major "make-or-break" moment for the Continent. I'll call B.S. - excuse the language - in reality, this is simply the latest summit/meeting of many going back years at which officials are (slowly) shifting the fundamentals of the EMU and it won't be the last.
This morning's Initial Jobless Claims came in at 365k versus estimates of 370k, below the 400k level. Yesterday's 10-yr Treasury note went out at 1.53%, and in the early going we're a shade better with the 10-yr down to 1.50%. MBS Prices
I was visiting my son and daughter-in-law last night when I asked if I could borrow a newspaper.
"This is the 21st century, old man," he said. "We don't waste money on newspapers. Here, you can borrow my iPad."
I can tell you, that fly never knew what hit it...
...(read more)
Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/08022012-san-bernardino-los-goldman.aspx
Five Years After the Bubble Burst, Home Values Have Reached a Bottom
After five long years of a housing recession, U.S. home values have reached a bottom, according to Zillow’s second quarter Real Estate Market Reports, which were [...]
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/gG-NccT2Sls/
Featured Chicago Open House Listings: July 15
This weekend, Dream Town is celebrating the best of Chicago’s single-family homes, and we’re inviting you out for a visit. Whether you’re looking for your very first family home and are ready for the next step up, we’re showcasing a collection of Chicago homes that are certain to suite your needs and tastes. In the market for a luxury home with a little flair? Then check out our vintage row house in Buena Park. Looking for simple sophistication with room [...]
Source: http://feedproxy.google.com/~r/dreamtown/~3/1wF8_WuiUFU/chicago-open-house-listings-july-15
Zillow Chief Economist Offers Forecast on Housing Market
Dr. Stan Humphries, Zillow Chief Economist, appeared on Fox Business today to discuss the good news from Zillow’s second quarter Real Estate Market Reports. Humphries�discussed the [...]
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/dee3-6odwok/
Buildium Joins Zillow Listings Feed Program
We?re excited to announce that Buildium is now syndicating rental listings to Zillow as part of the Zillow Listings Feed Program. Buildium, a property management software [...]
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/Il0qvMogGZ4/
State Street settlement talks advance with pension fund
BOSTON (Reuters) - State Street Corp's settlement talks with an Arkansas pension fund over foreign currency trades have advanced to another level after both sides agreed to meet with a mediator,... 
A-Lister Getaways: Malibu, Hamptons and South Beach (VIDEO)
If you're a celebrity, you're hitting the road for a pricey rental, or perhaps your vacation home in a few exclusive spots.
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/jWaTxDvlAow/
What Happens on Moving Day
Breathe deeply and follow these tips to ensure your moving day goes off without a hitch.
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/dZ9xYQAiaCU/
5 Tips for Summer Home Selling
By Peter Ricci
In case you haven’t noticed, it’s hot outside ? quite hot, in fact! All throughout the Midwest, temperatures have been raging (they hit 107 in Evansville, Indiana in June), and they’ve made the home searching process a bit more, how can we phrase it, sweaty?
As with any adversity in real estate, though, there are simple, practical solutions to the 2012 heat wave, and we’ve got five that can make those blistering home showings a bit more bearable.
Central Air�? Make sure you don’t skimp on air conditioning; few things ...
In case you haven’t noticed, it’s hot outside ? quite hot, in fact! All throughout the Midwest, temperatures have been raging (they hit 107 in Evansville, Indiana in June), and they’ve made the home searching process a bit more, how can we phrase it, sweaty?
As with any adversity in real estate, though, there are simple, practical solutions to the 2012 heat wave, and we’ve got five that can make those blistering home showings a bit more bearable.
Central Air�? Make sure you don’t skimp on air conditioning; few things ...
Source: http://feedproxy.google.com/~r/chicagoagentmagazine/news/~3/DT29zGEHozc/
5 Tips for Real Estate Photography That Looks Professional
By Peter Ricci
“It is a truth universally acknowledged, that a real estate agent in possession of a good property must be in want of great photography.” ? Jane Austen
Alright, that may not be the exact opening line to�Pride and Prejudice, but it definitely gets the point across on how valuable photography now is for real estate agents, what with the advent of the Internet and the increasing ubiquity of tablets and smartphones. It’s no longer a matter of “if” you use photography with your listings, but “how,” and we’ve got ...
“It is a truth universally acknowledged, that a real estate agent in possession of a good property must be in want of great photography.” ? Jane Austen
Alright, that may not be the exact opening line to�Pride and Prejudice, but it definitely gets the point across on how valuable photography now is for real estate agents, what with the advent of the Internet and the increasing ubiquity of tablets and smartphones. It’s no longer a matter of “if” you use photography with your listings, but “how,” and we’ve got ...
Source: http://feedproxy.google.com/~r/chicagoagentmagazine/news/~3/szXPE8c1lhk/
U.S. future economic growth gauge falls: ECRI
NEW YORK (Reuters) - A measure of future economic growth fell in the latest week, while the annualized growth rate rose, a research group said on Friday. 
Source: http://feeds.reuters.com/~r/news/economy/~3/1Aj4YKybpK4/us-usa-economy-ecri-idUSBRE8720UX20120803
30-Year Fixed Mortgage Rate Hits Yet Another Record Low
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.34 percent, down from 3.35 [...]
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/o2N3uoC9sfc/
Friday, August 3, 2012
National Bedding nears $3 bln buyout - WSJ
Aug 3 (Reuters) - Serta mattress maker National Bedding Co
is likely to be bought by private-equity firm Advent
International for about $3 billion, the Wall Street Journal
reported quoting people familiar with the matter. 
is likely to be bought by private-equity firm Advent
International for about $3 billion, the Wall Street Journal
reported quoting people familiar with the matter.
Mortgage Rates : 30-Year Fixed Rate Mortgage Rises To 3-Week High
30-year fixed rate mortgage rates rose for the first time in 6 weeks this week. Mortgage rates are at a three-week high.
Click for the complete post : Mortgage Rates : 30-Year Fixed Rate Mortgage Rises To 3-Week High.
Join Coach Tom Ferry for a Live Webinar on July 25
Real estate sales coach Tom Ferry and Prospect Mortgage?s Chief Performance Officer Todd Duncan have teamed up to offer a live webinar to real estate agents [...]
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/ZgDAS3qxoDk/
Analysis: Canada takes tough stance on pension fund relief
OTTAWA/TORONTO (Reuters) - Conservative Canada is taking a different tack than Washington on the thorny issue of helping companies fund their widening pension gaps, shrugging off corporate pleas for... 
Source: http://feeds.reuters.com/~r/news/wealth/~3/rf_YaorJPBk/us-pensions-idUSBRE87217320120803
Former Model Jason Shaw Turns Foreclosure Into Model Residence
Jason Shaw bought the home a little over a year ago and with a team transformed the property into a modern, light-filled home.
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/Aar48Cys_s8/
Fed says economy may need help, keeps policy on hold
WASHINGTON (Reuters) - The Federal Reserve stopped short of offering new monetary stimulus on Wednesday even as it signaled more strongly that further bond buying could be in store to help a economic... 
Source: http://feeds.reuters.com/~r/news/economy/~3/w3t5lfpxnxA/us-usa-fed-idUSBRE87007A20120801
Credit Olympics: Credit Reports Around the World
As the 2012 Summer Olympics get underway in London, many of us will be following our favorite sports and team ...Source: http://www.credit.com/blog/2012/07/credit-olympics-credit-reports-around-the-world/
Chicago Illinois Mortgage Rates Week in Review for the Week Ending 07/13/2012
This was a slow week for news and economic reports, and it seems we have hit the slow days of summer a little early this year. The trend in mortgage rates is slowly moving lower. Last week we saw the best rates ever, before pulling back somewhat on Friday. The focus is still on the [...]
Beating the Hot Phoenix Real Estate Market
Are you a little frustrated with trying to beat the bidding wars and not sure which way to turn? Well, I have found the answer for all my buyers out here. Completely energy efficient new builds is �where it is at! I know of two locations that can offer the buyer 3-5 bedrooms, 2 baths, [...]
Source: http://www.ThompsonGroupAZ.com/beating-the-hot-phoenix-real-estate-market/
Weichert, Realtors Adds Kalan To Sales Roster
Weichert, Realtors – Goodchild Homes has announced the addition of Realtor Kenneth Kalan to its sales team, according to an issued press release.
Kalan will bring seven years of industry experience to Goodchild Homes’ Rolling Meadows office at 1440 Hicks Road.�
Prior to joining the real estate industry, Kalan worked in the electronics field, for which has an associates degree in from Triton College, according to his LinkedIn profile.
Both in the electronics and real estate industry, Kalan’s credentials include being a, “real estate investor, senior UNIX System administrator in the information technology ...
Kalan will bring seven years of industry experience to Goodchild Homes’ Rolling Meadows office at 1440 Hicks Road.�
Prior to joining the real estate industry, Kalan worked in the electronics field, for which has an associates degree in from Triton College, according to his LinkedIn profile.
Both in the electronics and real estate industry, Kalan’s credentials include being a, “real estate investor, senior UNIX System administrator in the information technology ...
Source: http://feedproxy.google.com/~r/chicagoagentmagazine/news/~3/qa-Ntb3sFS4/
Meditation Course Provided for Dream Town Agents
Dream Town Realty is proud to announce that we’re sending several of our agents and full-time employees to a professional meditation course. Our president, Yuval Degani, believes that providing an opportunity like this has significant impact on our employees’ personal lives and that, in turn, it will positively affect their real estate careers. He’s providing a full scholarship for those participating in the course, which generally costs $495. In addition to the mediation course, we also offer employees a free [...]
Source: http://feedproxy.google.com/~r/dreamtown/~3/jUYhWiSaXOg/meditation-course-provided-fo
Zillow Chief Economist Offers Forecast on Housing Market
Dr. Stan Humphries, Zillow Chief Economist, appeared on Fox Business today to discuss the good news from Zillow’s second quarter Real Estate Market Reports. Humphries�discussed the [...]
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/dee3-6odwok/
Thursday, August 2, 2012
French and Benelux stocks-Factors to watch on Aug 3
PARIS, Aug 3 (Reuters) - Below are company-related news and
stories from French and Benelux media which could have an impact
on the region's markets or individual stocks. 
stories from French and Benelux media which could have an impact
on the region's markets or individual stocks.
Former Model Jason Shaw Turns Foreclosure Into Model Residence
Jason Shaw bought the home a little over a year ago and with a team transformed the property into a modern, light-filled home.
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/Aar48Cys_s8/
Fed says economy may need help, keeps policy on hold
WASHINGTON (Reuters) - The Federal Reserve stopped short of offering new monetary stimulus on Wednesday even as it signaled more strongly that further bond buying could be in store to help a economic...
Source: http://feeds.reuters.com/~r/news/economy/~3/w3t5lfpxnxA/us-usa-fed-idUSBRE87007A20120801
U.S. SEC's Plaze, veteran fund regulator, to retire
WASHINGTON, Aug 2 (Reuters) - Robert Plaze, a longtime
official in the Securities and Exchange Commission's Investment
Management division who is well-known to the U.S. fund industry,
is retiring at... 
official in the Securities and Exchange Commission's Investment
Management division who is well-known to the U.S. fund industry,
is retiring at...
What Our Clients Are Saying
Many of our buyer and seller clients are gracious enough to send us their reviews of the service we provide.� We really appreciate hearing how happy our clients are and thankful for the chance to work with them. Please see our testimonials page here:� http://www.thompsongroupaz.com/client-testimonials/
Source: http://www.ThompsonGroupAZ.com/what-our-clients-are-saying/
Finding a haven from volatility isn't easy
CHICAGO (Reuters) - Most experienced long-term investors know stocks are volatile and can deal with it. But what if you want to stay in stocks and at the same time reduce your downside risk and avoid... 
Source: http://feeds.reuters.com/~r/news/wealth/~3/JOTpAtBpjhQ/us-column-wasik-beta-idUSBRE8711AZ20120802
Security vs. Rate Sheet Prices; Big Bank Earnings and Layoffs; Eminent Domain Conference Call
On Thursday, Fannie 3.5% securities (composed of 3.75-4.125% 30-yr mortgages) traded at a 6 (yes, six) point premium. Put another way, 106. Fannie 3% securities (with 3.25-3.625% 30-yr mortgages) were above a 3.5 point premium, meaning a 3.5 rebate. But although prices are at historical highs, no borrower is seeing a 3.5 point rebate on a 3.5% 30-yr conventional loan.
But we all know that the base MBS price is only one part of the equation - just like the base price for a car before extras are added. By the time a rate shows up on the rate sheet, it has passed through changes due to the base asset price (MBS), servicing value, buy-ups, buy-downs, mandatory adjustors, LLPA's, profit margins (at investor and lender levels), and competition (what is the guy up the street doing?). And in this environment, lenders have beefed up those margins to cover rising overhead, reserve against future litigation and buyback costs, cover the increased costs of being audited, add capital for servicing, and slow down production due to capacity and early prepayment issues. Nuff said.
There are a lot of ways to glean information these days, and I found this note of interest. "I thought I would send over a copy of our new eBook ("The world according to HARP (2.0)") for your consideration. Our goal is to provide an educational resource for borrowers. The eBook is available for free download here. Thank you to Charles Warnock, Director of Digital Marketing for Western Bancorp in California. (CEO's, don't be the last on your block to have a director of digital marketing!)
Speaking of books, Michele Perrin of Perrin & Associates just wrote one for "The Lost Bank: The Story of Washington Mutual - The Biggest Bank Failure in American History" by Kirsten Grind. (Michele is the former First Vice President of Washington Mutual's Mortgage Banker Finance Division.) "The book starts with a prologue from September 25, 2008, the day WaMu was taken over by the FDIC, but then steps back to 1981 when Lou Pepper reluctantly finds himself at the helm of unprofitable $2 billion thrift with 35 branches in Washington State. He sets about making the place into the "Friend of the Family." Lou starts coming up with folksy WaMu values for the employees, like "Ethics, Respect, Teamwork, Innovation & Excellence," some of which they were still using when Bank United, where I was working, was acquired by WaMu in 2000. But sadly for the Bank, by 1986 Lou was nearing retirement age and must pick a successor. Enter Kerry Killinger..." Let's not forget the acquisition of Home Savings, subprime lender Long Beach Mortgage. In 2003, powered by the Bank's "Higher Risk Loan Strategy" and the WaMu ad campaign, "The Power of Yes," the volume of mortgage loans tripled, reaching an astonishing $155 billion. As much as 80% of WaMu's Option ARMs were "stated income" loans with no income documentation (fondly referred to as "Liar Loans"). Perhaps even more frightening, stated income loans made up 90% of WaMu's home equity loans. Perhaps JPMorgan Chase didn't get such a bargain when they bought the Bank from the FDIC for $1.8 billion.
Another way to gather information is via conference calls. I have received many e-mails from folks wondering why the eminent domain issue is a hot button for real estate lending, and securization in general. Perhaps they should listen in to SIFMA's call. "San Bernardino County, Fontana and Ontario CA formed a joint powers authority (JPA) charged with exploring the use of eminent domain to seize underwater mortgage loans from their holders, and refinance or otherwise restructure them. This unprecedented plan, if implemented, would be significantly disruptive to mortgage markets in San Bernardino and beyond, due to the material and unjustified losses it would impose on mortgage-backed security investors, among others. SIFMA will hold a call today at 11AM EDT to discuss this issue. Participants can pre-register by clicking the pre-registration link and entering Conference ID Number: 10016559. A dial-in number will be provided upon completion of the pre-registration process. LINK
Layoffs at big banks made the Financial Times headlines today. "Three of the world's biggest banks are preparing to shed a combined 5,350 investment bankers, as the industry struggles to adapt itself to continuing economic woes and the advent of new regulation. Morgan Stanley is cutting a further 4,000 jobs, Deutsche Bank is set to lay off about 1,000 of its investment banking staff, equivalent to about 10% of the unit's workforce, while Citigroup is shedding 350 bankers. "Analysts believe investment banks will remain under severe pressure to cut more costs over the coming months, as the cyclical effects of difficult trading conditions and a bleak economic outlook add to the longer-term challenges that come from tougher regulation of the industry." So far this year, according to analysts, Morgan Stanley has implemented 1,600 lay-offs, while UBS, Credit Suisse and Barclays have all cut 1,500 staff or more.
Last week we had Chase & Wells earnings. This week we learned that Bank of America swung to a profit in the second quarter, earning $2.5 billion. This exceeded analysts' estimates, but revenue totaled $22.2 billion, slightly less than expected and below the level in the first quarter this year. Analysts had been expecting the company to earn $22.9 billion. Credit losses in the second quarter dropped to $1.7 billion from $3.25 billion in the period a year earlier, reflecting what the company said were improving credit conditions for businesses and consumers as well as tighter lending standards. Bank of America plans to cut more than 30,000 workers in the coming years, and the bank has 12,600 fewer employees than it did a year ago. Its Tier 1 capital ratio under the Basel III agreements now stands at 8.1 percent, putting it ahead of the company's earlier goal of 7.5 percent by the end of 2012. Profit was also bolstered by so-called reserve releases as $1.9 billion of the $2.5 billion profit in the second quarter came from reserve releases. Fannie Mae and Freddie Mac want the company to buy back $11 billion in bad mortgages, up from $8.1 billion. Meanwhile, private investors are seeking $8.6 billion in buybacks, up from $4.9 billion.
Elsewhere, Citigroup's net income fell 12 percent in the second quarter partly due to a loss on the sale of its stake in a Turkish lender. The income of $2.9 billion still exceeded analysts' expectations, though. The bank reserved $27.6 billion at the end of the quarter, compared with $34.4 billion in the same period a year ago. The bank drew down its current loan loss reserves by $984 million and took an accounting gain of $219 million because the value of its debt decreased. Both of those items padded earnings. Citi's retail banking revenues grew 32 percent to $1.6 billion from the second quarter 2011, largely due to higher mortgage revenues.
Turning to the markets, there isn't much to turn to! There has been very little to talk about in the Eurozone as headlines have been fairly quiet of late - I guess folks are watching the Tour de France or are on vacation. Yesterday morning's Initial Jobless Claims numbers came in higher/worse than expected, and the Philly Fed, Existing Home Sales, and Leading Economic Indicators were also lackluster. (Jobless Claims increased by 34,000 to 386,000 in the week ended July 14 - the volatility in the numbers was due to a change in the timing of annual automobile plant layoffs.) Looking at June's Existing Home numbers, prices rose again but sales were down. Most of this was attributed to constrained supply. Existing Homes Sales declined 5.4% in June to 4.37 million from an upwardly revised 4.62 million in May, but are 4.5% higher than the 4.18 million-unit level in June 2011. The median price of an existing home increased 7.9% from June 2011 to $189,400, which reflects an increase in the purchase of higher-priced properties. At the current pace, it would take 6.6 months to sell existing inventory, the longest since November, compared with 6.4 months at the end of the prior period.
Analysts suggest that consumer spending is sputtering, manufacturing growth has slowed, and businesses have grown cautious about investment. But housing is doing pretty well. Cutbacks on home construction shaved as much as a full percentage point from GDP during the darkest days of 2007 and 2008. This year, construction should turn positive-adding around 0.3% points to GDP. By the close on Thursday, 10-year T-notes closed down/worse by about .250 (1.51%), and MBS prices worsened by about .125.
But overnight and today Asian equity markets finished mostly lower, in Europe equities are selling off 0.5% in the aggregate, and it appears our stock markets will be down - economies just aren't doing that well. In Europe, Spain's 10-year yield has breached the 7% level that tipped Greece, Ireland, and Portugal into IMF/EU bailouts. Here in the U.S today and Monday have nothing for news scheduled. The 10-yr is down to 1.48% and MBS prices are better by about .125.
Corporate game of telephone: "Eclipse Memos."
Memo from Owner to the CEO:
Today at 11 o'clock there will be a total eclipse of the sun. This is when the sun disappears behind the moon for two minutes. As this is something that cannot be seen every day, time will be allowed for employees to view the eclipse in the parking lot. Staff should meet in the parking lot at ten to eleven, when I will deliver a short speech introducing the eclipse, and giving some background information. Safety goggles will be made available at a small cost.
Memo from CEO to the Head of Operations:
Today at ten to eleven, all staff should meet in the parking lot. This will be followed by a total eclipse of the sun, which will disappear for two minutes. For a moderate cost, this will be made safe with goggles. The Owner will deliver a short speech beforehand to give us all some background information. This is not something that can be seen every day.
Memo from the Head of Operations to the Head of Underwriting:
The Owner will today deliver a short speech to make the sun disappear for two minutes in the eclipse. This is something that cannot be seen every day, so staff will meet in the parking lot at ten or eleven. This will be safe, if you pay a moderate cost.
Memo from the Head of Underwriting to the Underwriting Team Supervisor:
Ten or eleven staff are to go to the parking lot, where the Owner will eclipse the sun for two minutes. This doesn't happen every day. It will be safe, but it will cost you.
Memo from the Underwriting Team Supervisor to the underwriters:
Some staff will go to the parking lot today to see the Owner disappear. It is a pity this doesn't happen every day.
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Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/07202012-eminent-domain-california.aspx
Housing Starts: A Guided Tour for Investors
Housing data can be a good economic and investing proxy beyond demand for big yellow excavators. Swings� in the month-over-month change for construction starts and property� resales tend to drive housing and economic-sensitive stock prices in the� short term. But housing reports are layered with figures that can� inform investors beyond those quick hits. This [...]
Source: http://stlhba.hbablog.com/2012/08/02/housing-starts-a-guided-tour-for-investors/
Is HUD?s latest move the right one?
HUD announced last week that it would increase their bulk sale of troubled mortgages from 20,000 loans to 36,000 loans a year. That’s good news, but could HUD have gotten better prices with less restrictive sales?
The government’s Distressed Asset Stabilization Program is designed to get troubled loans out of the FHA program in order to [...]
The government’s Distressed Asset Stabilization Program is designed to get troubled loans out of the FHA program in order to [...]
5 Things to Do in Chicago This Weekend: July 20-22
Shake summer up a bit, with craft beer, rye whiskey, outdoor dancing and yoga on the water. While we don’t recommend going after these things all at once, we certainly recommend giving each of them a shot and, if you’re up for it, Chicago has you covered. Head to Grant Park on Friday evening for free Flamenco lessons and then check out the first ever Lincoln Square Roots Festival, celebrating local music and regional brews. On Sunday, you can revamp [...]
Report: Michael Phelps? Bachelor Pad Still on Market
Top Ten Real Estate Deals reports that the swimmer's high-end property on Baltimore's famed Inner Harbor is still on the market.
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/UmlzCMhSNqE/
Incentives and Fewer Fees Lure Illinois Builders and Buyers
Since the 2010 census proclaimed Kendall County as the fastest growing county in the nation, optimism has slowly caught the attention of new developers, builders and new residents in the Chicago area. With local governments slashing large building fees for new-home construction and offering as much as $10,000 in cash to buyers, more and more [...]
Wednesday, August 1, 2012
Summer Market Update
The 5-day forecast calls for highs of 107, 104, 101, 105 and 105 degrees. Well, this IS Phoenix during the summer, so at least we can be thankful the temperature will be under 110! But, nonetheless ? hot is hot, and many buyers are saying the same about the Phoenix Real Estate market.� Although the [...]
Source: http://www.ThompsonGroupAZ.com/summer-market-update/
Patio Pavers: A Primer
Versatile, beautiful and DIY-friendly, today's patio pavers are an ideal choice for any hardscape plan.
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/rsDxlqY5i1U/
City Considers Eminent Domain Power to Seize Chicago Real Estate
Hot on the heels of a proposed eminent domain plan in San Bernardino County California, the city of Chicago is considering a similar plan for underwater mortgages in Cook County.
Eminent domain is a little-mentioned government power that allows it to seize property with fair compensation to the owners, as long as it benefits the public good. Though normally used for land and housing, the current housing market’s mortgage ills have motivated some analysts ? such as heavy-hitter Robert J. Shiller ? to advocate for the policy.
According to city council documents, ...
Eminent domain is a little-mentioned government power that allows it to seize property with fair compensation to the owners, as long as it benefits the public good. Though normally used for land and housing, the current housing market’s mortgage ills have motivated some analysts ? such as heavy-hitter Robert J. Shiller ? to advocate for the policy.
According to city council documents, ...
Source: http://feedproxy.google.com/~r/chicagoagentmagazine/news/~3/800Eq1ZB7qg/
Make a stand with hospital paperwork
(Reuters) - As scary is it might be to go to a hospital in an emergency, most people do not regard it as similar to getting arrested -- a situation where your instinct would be to obtain the advice... 
What?s the latest on housing? Are there really fewer homes for sale?
Clear signals in housing are always hard to come by.
Pending sales
Just look at the latest housing report. Pending home sales fell by 1.4 percent in June, yet remain above year-ago levels, according to the National Association of Realtors.
?Buyer interest remains strong but fewer home listings mean fewer contract signing opportunities,? said NAR chief economist Lawrence [...]
Pending sales
Just look at the latest housing report. Pending home sales fell by 1.4 percent in June, yet remain above year-ago levels, according to the National Association of Realtors.
?Buyer interest remains strong but fewer home listings mean fewer contract signing opportunities,? said NAR chief economist Lawrence [...]
Pricing My Home Right
Pricing a home correctly is defined as pricing a home in a price range of comparable Phoenix Arizona Homes sold in the last 3 to 6 months. A home priced more than 5% under the lowest sale may be considered under priced. A home priced more than 5% above the highest sale would be considered [...]
Source: http://www.ThompsonGroupAZ.com/pricing-my-home-right/
USDA Loans
I know several people are waiting for this good news�so here is what I have: This is�coming in from 3 good sources now- the vote on HR 4899 yesterday DID authorize funds for USDA. The bill is just waiting for Obama’s signature so we now know the USDA is getting their funding! If you’ve been [...]
DNR Draft TMDLs for St. Louis County
Missouri Department of Natural Resources has placed on public notice draft TMDLs for four creeks in St. Louis County: Gravois Creek (until July 30); Creve Coeur Creek (until August 6); Coldwater Creek (until August 13); and Fishpot Creek (until August 13). To view DNR TMDL development schedule for 2012, visit http://www.dnr.mo.gov/env/wpp/tmdl/wpc-tmdl-progress.htm. If interested in reviewing [...]
Source: http://stlhba.hbablog.com/2012/08/01/dnr-draft-tmdls-for-st-louis-county-2/
Chicago Illinois Mortgage Rates Week in Review for the Week Ending 07/20/2012
With more evidence that the economy is slowing, Europe is still not fixed and the Chinese economy is also downshifting, mortgage rates are again dropping to all time lows. Fear is again in the air, and money flows away from anything considered risky, which benefits first US treasury bonds, and then mortgage backed securities which [...]
FHFA: Home Prices Rise 0.8% From April to May
This morning the FHFA published their House Price Index for May. �From the report: “Washington, DC ? U.S. house prices rose 0.8 percent on a seasonally adjusted basis from April to May, according to the Federal Housing Finance Agency?s monthly House Price Index. The previously reported 0.8 percent increase in April was revised downward to [...]
Source: http://www.totalmortgage.com/blog/mortgage-rates/fhfa-home-prices-rise-0-8-from-april-to-may/17707
Junior Seau?s Former Home for Sale
Less than three months after his death, the retired NFL linebacker's home is on the market.
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/yKHfTWabrDY/
New Crop of Foreclosures Is Coming
While fewer Americans are falling behind on their mortgage payments, the huge backlog of already delinquent mortgages is finally making its way through the�banking system to foreclosure. Read more here.
Source: http://stlhba.hbablog.com/2012/07/31/new-crop-of-foreclosures-is-coming/
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