WASHINGTON ? Feb. 1, 2010 ? Fannie Mae, the largest provider of residential home funding in the United States, announced on Friday that it would start to pay closing costs for buyers of foreclosed homes in its inventory. Buyers of qualified properties will get up to 3.5 percent in closing costs or an equivalent amount for the purchase of new appliances.
Fannie wants to clear out the nearly 50,000 properties it has in inventory ? listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.
In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.
?Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,? Terry Edwards, executive vice president for credit portfolio management, said in a statement.
? 2010 Florida Realtors?
Tuesday, February 2, 2010
Monday, February 1, 2010
Consumer Confidence Index Increases Moderately in January 2010
RISMEDIA, February 1, 2010?The Conference Board Consumer Confidence Index, which had increased in December 2009, improved further in January 2010. The Index now stands at 55.9 (1985=100), up from 53.6 in December. The Present Situation Index increased to 25.0 from 20.2. The Expectations Index increased to 76.5 from 75.9 last month.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is one of the world?s largest custom research companies. The cutoff date for January?s preliminary results was January 19th.
?Consumer Confidence rose for the third consecutive month, primarily the result of an improvement in present-day conditions. Consumers? short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months. Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists,? said Lynn Franco, director of The Conference Board Consumer Research Center.
Consumers? assessment of present-day conditions was, on the whole, more positive than last month. Those stating business conditions are ?good? increased to 9.0% from 7.5%, however, those stating business conditions are ?bad? increased to 46.1% from 45.7%. Consumers? assessment of the labor market improved moderately. Those claiming jobs are ?hard to get? declined to 47.4% from 48.1%, while those claiming jobs are ?plentiful? increased to 4.3% from 3.1%.
Consumers? short-term outlook, while overall more positive, was somewhat mixed. The percentage of consumers expecting an improvement in business conditions over the next six months decreased to 20.9% from 21.2%, while those anticipating conditions will worsen increased to 12.7% from 11.8%. Regarding the outlook for the labor market, those expecting fewer jobs decreased to 18.9% from 20.6%. However, those expecting more jobs to become available in the months ahead declined to 15.5% from 16.4%. The proportion of consumers anticipating a decrease in their incomes declined to 16.2% from 18.4%.
For more information, visit www.conference-board.org.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is one of the world?s largest custom research companies. The cutoff date for January?s preliminary results was January 19th.
?Consumer Confidence rose for the third consecutive month, primarily the result of an improvement in present-day conditions. Consumers? short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months. Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists,? said Lynn Franco, director of The Conference Board Consumer Research Center.
Consumers? assessment of present-day conditions was, on the whole, more positive than last month. Those stating business conditions are ?good? increased to 9.0% from 7.5%, however, those stating business conditions are ?bad? increased to 46.1% from 45.7%. Consumers? assessment of the labor market improved moderately. Those claiming jobs are ?hard to get? declined to 47.4% from 48.1%, while those claiming jobs are ?plentiful? increased to 4.3% from 3.1%.
Consumers? short-term outlook, while overall more positive, was somewhat mixed. The percentage of consumers expecting an improvement in business conditions over the next six months decreased to 20.9% from 21.2%, while those anticipating conditions will worsen increased to 12.7% from 11.8%. Regarding the outlook for the labor market, those expecting fewer jobs decreased to 18.9% from 20.6%. However, those expecting more jobs to become available in the months ahead declined to 15.5% from 16.4%. The proportion of consumers anticipating a decrease in their incomes declined to 16.2% from 18.4%.
For more information, visit www.conference-board.org.
Friday, January 29, 2010
Fannie Mae Offers New Closing Cost Assistance and Appliance Incentive for Homebuyers
Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on HomePath.com that are closed within this period may receive up to 3.5% of the final sales price for:
? Closing costs;
? The purchase of new Whirlpool? appliances by Fannie Mae; or
? A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.
To be eligible for this incentive:
? Offers must be accepted on or after January 28, 2010;
? Property sales must close before May 1, 2010, and;
? Buyers must be owner-occupants (investors are excluded).
The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker.
? Closing costs;
? The purchase of new Whirlpool? appliances by Fannie Mae; or
? A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.
To be eligible for this incentive:
? Offers must be accepted on or after January 28, 2010;
? Property sales must close before May 1, 2010, and;
? Buyers must be owner-occupants (investors are excluded).
The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker.
Tuesday, January 19, 2010
HUD takes action to speed resale of foreclosed properties
WASHINGTON ? Jan. 18, 2010 ? In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan announced a temporary policy that will expand access to FHA mortgage insurance to allow for a quicker resale of foreclosed properties. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties or properties resold through private sales.
?As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,? says Donovan. ?FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.?
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
?This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,? Donovan says.
Acquiring, rehabilitating and reselling foreclosed properties to prospective homeowners often takes less than 90 days in today?s market; and FHA?s 90-day rule can adversely impact buyers if a seller is unwilling to hold a property 90 days thanks to holding costs and the risk of vandalism.
?FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,? says FHA Commissioner David H. Stevens. ?This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.?
The waiver will take effect on Feb. 1, 2010, and be effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of ?flipping,? the waiver is limited to those sales meeting the following general conditions:
? All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
? In cases in which the sales price of the property is 20 percent or more above the seller?s acquisition cost, the waiver will only apply if the lender meets specific conditions.
? The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
? Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD?s website:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
? 2010 Florida Realtors?
?As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,? says Donovan. ?FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.?
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
?This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,? Donovan says.
Acquiring, rehabilitating and reselling foreclosed properties to prospective homeowners often takes less than 90 days in today?s market; and FHA?s 90-day rule can adversely impact buyers if a seller is unwilling to hold a property 90 days thanks to holding costs and the risk of vandalism.
?FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,? says FHA Commissioner David H. Stevens. ?This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.?
The waiver will take effect on Feb. 1, 2010, and be effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of ?flipping,? the waiver is limited to those sales meeting the following general conditions:
? All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
? In cases in which the sales price of the property is 20 percent or more above the seller?s acquisition cost, the waiver will only apply if the lender meets specific conditions.
? The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
? Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD?s website:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
? 2010 Florida Realtors?
Monday, January 11, 2010
Single women outnumber single men when buying a home
CHAPEL HILL, N.C. ? Jan. 11, 2010 ? For a number of reasons, both financial and personal, a growing number of men are shunning the revered institution of homeownership. The figures behind this phenomenon only hint at possible reasons.
A comprehensive nationwide study by the University of North Carolina at Chapel Hill?s Center for Community Capital found that men and women under age 40 report fairly comparable levels of contentment with homeownership. Yet the attitudes of bachelors and bachelorettes hint at underlying gender attitudes toward homeownership. Married couples comprise the majority of new homebuyers.
According to the National Association of Realtors? (NAR), the next-largest buying group is single women, who in the past year accounted for more than one in five home sales; single men represented just 10 percent.
The gap has widened since the turn of the century, confirms Paul Bishop, NAR?s vice president for research. Bishop?s survey leaves unanswered questions about the roots of the gender divide. Whatever the reasons, a number of men seem to grasp all too well what economists see as an enigma of homeownership: it has an asset, or investment, value, as well as a consumption value.
?Once upon a time, people bought houses to live in,? says UCLA geography professor William Clark, who writes frequently on homeownership. Today, ?with the sudden run-up in foreclosures, you?re starting to see people ask: ?Is housing a good investment??? he explains.
Source: New York Times (01/07/10) P. D1; Tortorello, Michael
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
A comprehensive nationwide study by the University of North Carolina at Chapel Hill?s Center for Community Capital found that men and women under age 40 report fairly comparable levels of contentment with homeownership. Yet the attitudes of bachelors and bachelorettes hint at underlying gender attitudes toward homeownership. Married couples comprise the majority of new homebuyers.
According to the National Association of Realtors? (NAR), the next-largest buying group is single women, who in the past year accounted for more than one in five home sales; single men represented just 10 percent.
The gap has widened since the turn of the century, confirms Paul Bishop, NAR?s vice president for research. Bishop?s survey leaves unanswered questions about the roots of the gender divide. Whatever the reasons, a number of men seem to grasp all too well what economists see as an enigma of homeownership: it has an asset, or investment, value, as well as a consumption value.
?Once upon a time, people bought houses to live in,? says UCLA geography professor William Clark, who writes frequently on homeownership. Today, ?with the sudden run-up in foreclosures, you?re starting to see people ask: ?Is housing a good investment??? he explains.
Source: New York Times (01/07/10) P. D1; Tortorello, Michael
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Saturday, January 9, 2010
Fannie Mae Launches Special Approval Designation to Support Florida Condo Market
WASHINGTON, DC ? Fannie Mae (FNM/NYSE) announced today that it is undertaking a comprehensive review of hundreds of condominium projects in the state of Florida in an effort to allow additional projects to become Fannie Mae-eligible through a new "Special Approval" designation.
A dedicated team of six Fannie Mae professionals based in Florida is conducting a thorough examination of condominium projects across the state that may not currently meet Fannie Mae's standard eligibility criteria and assessing specific criteria more closely, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects deemed to be sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Fannie Mae has been granting exceptions to its condominium eligibility guidelines on a case-by-case basis when requested by lenders. The Special Approval designation streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed, and qualified borrowers wishing to purchase units in these projects will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
"NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida," said Moe Veissi, National Association of Realtors? First Vice President and broker-owner of Veissi & Associates Inc. in Miami. "Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
A dedicated team of six Fannie Mae professionals based in Florida is conducting a thorough examination of condominium projects across the state that may not currently meet Fannie Mae's standard eligibility criteria and assessing specific criteria more closely, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects deemed to be sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Fannie Mae has been granting exceptions to its condominium eligibility guidelines on a case-by-case basis when requested by lenders. The Special Approval designation streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed, and qualified borrowers wishing to purchase units in these projects will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
"NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida," said Moe Veissi, National Association of Realtors? First Vice President and broker-owner of Veissi & Associates Inc. in Miami. "Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
Thursday, December 31, 2009
Innovative Home Staging Is Key to Home Sales in Down Market
RISMEDIA, December 31, 2009?With a $569,000 Tampa home sitting on the market for a year and a half and no signs of a sale, Tracy Truitt was a disheartened Realtor looking for a new approach that would help her sell her listing.
Truitt, a Realtor with Century 21 Elite in Tampa, discovered Showhomes, a home staging company, with what it calls a unique spin on traditional home staging: the nationally franchised company finds people to live in and help stage vacant homes so that they show better and sell faster. Given the declining real estate market, mansions and just about every other type of home are difficult to sell, the company reports.
Showhomes says it staged Truitt?s home and it sold in eight days. ?I had an almost full price offer within a week of Showhomes? staging, and a 25% higher offer than the two offers that had come in previously to the home being staged,? Truitt says.
Showhomes Tampa owner Linda Saavedra says Truitt?s experience isn?t a fluke.
She says the company?s staged homes are selling in a fraction of the time most homes are taking to sell. So are homes all over the country staged with Showhomes? system, she adds. According to the company, a typical $850,000 home in Florida is taking well over a year to sell in today?s market and the average time it has taken Showhomes to sell these homes is 132 days.
?Recently we?ve had six major success stories with homes that have lingered on the market for over a year,? she says. ?Three homes sold within 35 days and two others were contracted within seven days of staging. The home that sold in 8 days has been on the market for over two years and the sale price was 20% more than the offers they received when the home was vacant.?
?Our approach is working,? says Thomas Scott, VP of operations at the Nashville-based corporate headquarters of Showhomes. ?We are experiencing similar home sales results in southern California, the Midwest and Northeast. Despite the glut of inventory, there are buyers in the market and they are choosing to purchase homes we have staged.?
For more information, visit www.showhomes.com
Truitt, a Realtor with Century 21 Elite in Tampa, discovered Showhomes, a home staging company, with what it calls a unique spin on traditional home staging: the nationally franchised company finds people to live in and help stage vacant homes so that they show better and sell faster. Given the declining real estate market, mansions and just about every other type of home are difficult to sell, the company reports.
Showhomes says it staged Truitt?s home and it sold in eight days. ?I had an almost full price offer within a week of Showhomes? staging, and a 25% higher offer than the two offers that had come in previously to the home being staged,? Truitt says.
Showhomes Tampa owner Linda Saavedra says Truitt?s experience isn?t a fluke.
She says the company?s staged homes are selling in a fraction of the time most homes are taking to sell. So are homes all over the country staged with Showhomes? system, she adds. According to the company, a typical $850,000 home in Florida is taking well over a year to sell in today?s market and the average time it has taken Showhomes to sell these homes is 132 days.
?Recently we?ve had six major success stories with homes that have lingered on the market for over a year,? she says. ?Three homes sold within 35 days and two others were contracted within seven days of staging. The home that sold in 8 days has been on the market for over two years and the sale price was 20% more than the offers they received when the home was vacant.?
?Our approach is working,? says Thomas Scott, VP of operations at the Nashville-based corporate headquarters of Showhomes. ?We are experiencing similar home sales results in southern California, the Midwest and Northeast. Despite the glut of inventory, there are buyers in the market and they are choosing to purchase homes we have staged.?
For more information, visit www.showhomes.com
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