tag:blogger.com,1999:blog-51720554427518287542024-09-01T00:47:23.215-07:00The Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-5172055442751828754.post-66705834159745455022012-02-21T08:36:00.000-08:002012-02-21T08:39:14.682-08:00WASHINGTON – Feb 17, 2012 – The nation’s new cop on the consumer-finance beat is zeroing in on debt collectors and credit reporting companies.The Consumer Financial Protection Bureau (CFPB) said Thursday that it wants to add debt collectors and credit bureaus to the list of industries that agency officials can supervise in person.The agency has already started supervising payday lenders, mortgage companies and private student lenders. It gained that power last month, after President Barack Obama installed its director.The CFPB can also write rules to supervise big companies in other industries. Thursday’s announcement was a first step toward defining which industries the CFPB wants to scrutinize.The housing bust and recession have transformed debt-collection and credit-reporting companies, making them a much bigger part of consumers’ lives, agency Director Richard Cordray told reporters.More people have overdue debts that have been handed to collection agencies, he said, and many people’s credit scores have been hit by foreclosures, a lost job or a family member hurt by the recession, he said.About 30 million Americans have debts in collection, Cordray said. He said debt collectors receive more complaints than any other industry, according to a database of complaints maintained by the Federal Trade Commission.Consumers are vulnerable to abuse by debt collectors and faulty credit reports because they can’t take their business elsewhere, Cordray noted.Oversight by the CFPB will help companies follow the rules by clarifying how they will be enforced, one industry executive said.“Agencies like ourselves are really hoping that the CFPB, if they’re going to have increased regulation of the collection world, will provide clarity on what you can and can’t do,” said Tim Smith, senior vice president of banking and financial services at Firstsource Solutions. Smith’s division collects debt for many of the nation’s biggest credit-card issuers.Firstsource and its competitors expect the CFPB to stir major changes over the next year, and many are ramping up internal controls and audits to prepare for the new oversight, he said.Banks have long been subject to strict scrutiny by regulators focused on their safety and financial stability. Yet much of the abusive lending that inflated the housing bubble occurred far from that spotlight, because the lenders were not subject to bank oversight.The CFPB was created in part to close the regulatory gap. Its officials can visit, inspect and collect information from a broad slice of the financial-services market that previously lacked such oversight.Until now, the government could bring lawsuits against companies that broke laws aimed at protecting consumers from heavy-handed debt collection tactics. Bank-style supervision allows officials to look closely at the practices of healthy companies that are not accused of wrongdoing.The list of industries subject to CFPB supervision will continue to grow. In a preliminary outline of its plans last June, the agency named prepaid debit cards, money-transfer services, check cashers and debt-relief firms, among others.Under Thursday’s proposal, debt collectors with more than $10 million in annual receipts and consumer reporting agencies with more than $7 million in consumer-data revenue would be subject to supervision. The CFPB estimates that it will cover agencies that do 63 percent of the nation’s debt collection and generate 94 percent of the consumer credit revenue. Copyright © 2012 The Associated Press, Daniel Wagner, AP business writer.The Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-82929103191152529522012-02-21T08:34:00.000-08:002012-02-21T08:36:07.339-08:00TALLAHASSEE, Fla. – Feb. 17, 2012 – The Florida House on Wednesday approved a series of tax breaks, hoping to free thousands of businesses from corporate-income taxes and put extra money in the pockets of back-to-school shoppers.House members went along with Gov. Rick Scott’s proposal to increase the corporate-income tax exemption from $25,000 to $50,000, passing it as part of a broader economic-development bill. Scott, in a statement, said it was “a huge victory” for Floridians, and would help businesses create more jobs.An additional exemption could benefit some Realtors and brokers in Florida, depending on their current tax situation. However, the Florida Senate has not yet voted on the bill.The issue broke along partisan lines on Tuesday. Some Democrats wanted to add conditions onto the additional exemption, while some Republicans wanted to limit the tax break to businesses that don’t employ union workers. Even after the vote, some lawmakers contend it will primarily help large corporations and do little for small businesses.“This bill does nothing to sweeten the pot for the middle class or the working families in this state,” said Rep. Mark Pafford, D-West Palm Beach.But Finance and Tax Chairman Steve Precourt, R-Orlando, said lawmakers need to put aside procedural disputes and “partisan rhetoric.” He said the higher exemption would allow nearly 4,000 businesses to avoid paying corporate-income taxes altogether.“This is not about the big guys, the big corporations, the fat cats,” said Majority Leader Carlos Lopez-Cantera, R-Miami. “This is about jobs.”The House voted 92-22 to approve the economic-development package, which also includes new or expanded tax breaks related to agricultural packing houses, aircraft repairs and industrial machinery and equipment.A House analysis said the package eventually would eliminate about $121 million a year in tax revenues for state and local governments.“By allowing more than 3,500 businesses to stop paying income taxes and instead put that money into jobs, and maximizing incentives to make Florida more attractive to quality manufacturing jobs, the Florida House has demonstrated it knows what it takes to help grow private-sector jobs,” Scott said in a statement after the vote.Also Wednesday, the House voted unanimously to hold a “sales tax holiday” from Aug. 3 through Aug. 5 that would be geared to back-to-school shoppers. The plan (HB 737) would allow shoppers to avoid paying sales taxes on items such as clothing, shoes and bags that cost $75 or less. Also, they would receive a sales-tax exemption for school supplies valued at $15 or less.House members also approved a bill (HB 87) on Wednesday that would provide tax incentives for companies that want to produce oil from abandoned wells in parts of Northwest and Southwest Florida.Pafford questioned whether that bill would open wells in Big Cypress National Preserve and Everglades National Park. But sponsor Matt Hudson, R-Naples, said the bill, which passed 80-36, would help put people back to work and put Florida on a “path to energy independence.”The Senate has not approved the economic-development package, the sales-tax holiday or the oil-production tax incentives.But Rep. Gary Aubuchon, R-Cape Coral, said the House is requesting that the Senate pass the measures or include them in budget negotiations.Source: News Service of Florida, Jim SaundersThe Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-15674084861647167852012-02-21T08:32:00.000-08:002012-02-21T08:34:13.371-08:00WASHINGTON (AP) – Feb. 17, 202 – The average rate on the 30-year fixed mortgage held steady at a record low for a third straight week, offering more incentive to those looking to buy a home or refinance.Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year home loan was unchanged at 3.87 percent. That’s the lowest level since long-term mortgages began in the 1950s.The average on the 15-year fixed mortgage was also unchanged at 3.16 percent. That’s up from a record low of 3.14 percent reached two weeks ago.The low rates have done little to boost the struggling housing market. Rates have been below 5 percent for all but two weeks in the past year. Yet few people can qualify for the rates and many of those who can have already done so.And prospective buyers don’t want to put money into a home that they fear could fall in price over the next few years.Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.Builders are hopeful that the low rates could boost sales this year. But so far, they have had a minimal impact.Frank Nothaft, Freddie Mac’s chief economist, said mixed readings on consumer confidence underscore the fragile condition of the housing market.Surveys of small business owner and homebuilder confidence rose in January and February, respectively. But the University of Michigan’s consumer sentiment fell in February, breaking a five-month upward trend.To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.The average fee for the 30-year loan was unchanged at 0.8; the average on the 15-year fixed mortgage rose to 0.8 from 0.7.For the five-year adjustable loan, the average rate fell to 2.82 percent from 2.83 percent, and the average fee rose to 0.8 from 0.7.The average on the one-year adjustable loan rose to 2.84 percent from 2.78 percent, and the average fee was unchanged at 0.6. Copyright © 2012 The Associated Press, Derek Kravitz, APThe Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-85199095666374212402012-02-21T08:28:00.000-08:002012-02-21T08:32:04.347-08:00NEW YORK – Feb. 17, 2012 – “Mom and pop investors” are trying to capitalize on a depressed real estate market in the hopes of cashing in one day.This new breed of small-scale investors likes to buy and hold properties, as opposed to the high-dollar large investment firms that once dominated the real estate market that flipped properties quickly.For “mom and pop investors,” the strategy is to buy homes at rock-bottom prices, rent the properties out to cover all of the costs of homeownership for several years, and then one day sell the homes when prices recover.“An unprecedented number of investors are looking into this,” John Burns, CEO of John Burns Real Estate Consulting, told USA Today. Investors purchased more than 26 percent of single-family and condos in 167 U.S. markets in the first nine months of last year, according to data supplied by Burns.For investors in the rental market, an 8 percent annual return is fairly normal, according to Burns. “That means that someone who buys a $100,000 property – and pays cash for it – makes $8,000 a year after expenses, including maintenance and taxes,” the USA Today article notes.Of course, the threats of tenant and maintenance issues always has the potential to derail that potential profit, so investors need to be careful before jumping in, some experts warn.Source: “Mom and Pop Investors Propping Up Home-Buying Market,” USA Today (Feb. 14, 2012)© Copyright 2012 INFORMATION, INC. Bethesda, MDThe Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-75927374166132120822012-01-20T12:14:00.000-08:002012-01-20T12:15:33.329-08:00NEW YORK – Jan. 20, 2012 – Surveys suggest that a high number of real estate deals are falling apart due to financing issues, and today’s sellers might need to get creative if they want their property to sell. Options to consider:• Sellers could back a second mortgage for the buyer at an amount that enables the buyer to meet the lender’s downpayment requirements, providing the lender agrees.• Sell the home “subject to the existing mortgage,” which means the buyers take over the sellers’ existing mortgage payments for a specified time, after which time they must obtain a new loan. This arrangement relieves sellers of their mortgage debt and helps buyers with credit scores too low secure a traditional loan. And while it forces buyers to get a mortgage as specified in the contract, experts say banks will not foreclose if payments are made on time.• Sellers willing to finance the sale can unload properties for a low downpayment by adding a sweat equity clause to the contract, which requires the buyers to bring the home into tip-top shape. The renovation details are written into the contract, and buyers must complete the repairs by the agreed-upon date to qualify for long-term seller financing.Source: RealtyBizNews (01/16/2012) Robinson, DonnaThe Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-86617778659908907722012-01-20T12:12:00.000-08:002012-01-20T12:13:56.556-08:00WASHINGTON – Jan. 20, 2012 – The average rate on the 30-year fixed mortgage fell again this week to a record low. The eighth record low in a year is attracting few takers because most who can afford to buy or refinance have already done so.Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year fixed mortgage dipped to 3.88 percent this week, down from the old record of 3.89 percent one week ago.The average on the 15-year fixed mortgage ticked up to 3.17 percent from 3.16 percent, which was also a record low. Records for mortgage rates date back to the 1950s.Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.For the past three months, the 30-year fixed mortgage rate has hovered near 4 percent. Yet cheap rates on the most popular mortgage option have done little to boost home sales.High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don’t want to sink money into a home that they fear could lose value over the next few years.Previously occupied homes are selling just slightly ahead of 2010’s dismal pace. New-home sales in 2011 will almost certainly be the worst on records going back half a century.Builders are hopeful that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose strongly in December and January.So far, the low rates have had minimal impact. Mortgage applications have risen about 6 percent on a seasonally adjusted basis over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.The average fee for the 30-year loan rose to 0.8 from 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.For the five-year adjustable loan, the average rate was unchanged at 2.82 percent. The average on the one-year adjustable loan fell to 2.74 percent from 2.76 percent.The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.The Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-91986927998741415292012-01-20T12:09:00.000-08:002012-01-20T12:12:13.632-08:00WASHINGTON – Jan. 20, 2012 – The economy is off to a fast start in 2012.The outlook for hiring is improving now that unemployment benefit applications are near a four-year low. Inflation is tame, business travel is rising and the depressed housing market is showing signs of improvement after three dismal years.That’s the picture shaped by a flurry of data Thursday. And it follows other reports showing the economy started the year with vitality. Companies are hiring more workers, consumer confidence is up, factories are cranking out more goods and bank lending is on the rise.Economists are optimistic. But they caution that it is too early to say the recovery is accelerating.“There’s no doubt that the economy is getting better, we just shouldn’t get carried away,” Mark Vitner, an economist at Wells Fargo, said. “We haven’t shifted into a higher gear.”Even with six months of solid job growth, unemployment remains painfully high at 8.5 percent. Inflation-adjusted wages fell over the past year. Housing continues to weigh on the economy. And a recession in Europe is expected to weaken growth in the U.S. and abroad.Still, Thursday’s reports were encouraging:• Fewer people sought unemployment benefits last week than at any time in nearly four years, the Labor Department said Thursday. Applications last week totaled just 352,000 after the biggest seasonally adjusted drop in more than six years.The four-week average, which smoothes out fluctuations, dropped to 379,000, the second-lowest such figure in more than three years. When weekly applications fall consistently below 375,000, it usually signals that hiring is strong enough to push down the unemployment rate.• Manufacturing expanded in the Northeast in January, according to surveys by the Federal Reserve banks of New York and Philadelphia. That follows a report from the Fed that said factory output across the country surged in December by the most in a year.• Inflation appears to be peaking after rising steeply last year. Consumer prices were unchanged in December, in part because gas is cheaper. Lower inflation gives consumers more spending power and allows the Fed more leeway to keep interest rates low.• Total spending on business travel rose 7.6 percent last year, the Global Business Travel Association said last week. That helps companies like Southwest Airlines, which reported higher fourth-quarter profit and revenue.• Union Pacific Corp., the nation’s largest rail operator, says it transported more cars, oil, industrial parts and chemicals in the final quarter of last year. CEO Jim Young predicted “slow but steady economic growth in 2012.”• JPMorgan Chase, the nation’s largest bank, said its lending to businesses rose 12 percent in the October-December quarter compared to the same period a year earlier. Tight credit has been a major reason why smaller businesses have been unable to expand and hire more workers.A recovery hinges on strong job growth. Hiring was solid in the final six months of last year, capped by December’s net increase of 200,000 jobs.Still, the job market has a long way to go before it fully recovers from the damage of the Great Recession, which wiped out 8.7 million jobs. More than 13 million people remain unemployed. Millions more have given up looking for work and so are no longer counted as unemployed.And wages aren’t keeping up with inflation. The department said in a separate report Thursday that average inflation-adjusted hourly earnings dropped 0.9 percent last year.Without more jobs and higher pay, consumers might have to cut back on spending. That would weigh down growth next year. Consumer spending accounts for about 70 percent of the economy.Another major hurdle is housing. In December, builders ended their third straight year of dismal home construction. And 2011 was the worst on record for single-family home building, the Commerce Department said.Still, signs of improvement surfaced toward the end of the year, when builders started more single-family homes in each of the last three months.And the average rate on the 30-year mortgage fell to a record low of 3.88 percent this week, according to Freddie Mac, the eighth record in the past year.So far, low rates have done little to boost home sales. But a survey of homebuilders this week showed many are more optimistic about this year after seeing a rise in the number of people looking to buy.“We expect further sustained gains in starts and permits over the next few months; a real recovery is getting started,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics.The Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-12655734085927806972012-01-20T12:06:00.000-08:002012-01-20T12:09:36.575-08:00ORLANDO, Fla. – Jan. 20, 2012 – At the close of 2011, Florida’s existing home and condominium markets reported higher sales compared to the previous year, according to the latest housing data released by Florida Realtors®. It was the third consecutive year for statewide home and condo sales activity to end the year on a positive upswing – higher year-over-year sales also were reported at the close of 2010 and 2009, records show.Looking back on 2011, Florida’s existing home sales rose 8 percent for the year, with a total of 185,921 homes sold compared to 172,462 homes sold in 2010. The statewide existing home median price for 2011 was $131,700; it was $135,900 in 2010 for a 3 percent decrease. In Florida’s condo market, a total of 87,581 units sold statewide in 2011, a gain of 15 percent compared to 76,209 units sold in 2010. The statewide existing condo median price in 2011 was $88,300; it was $90,000 in 2010 for a 2 percent decrease.Sixteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales at the close of 2011 compared to 2010; the same number of MSAs also reported higher existing condos sales.“Florida’s economy is continuing to strengthen, which is good news,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Many people are hoping to take advantage of the current record low mortgage rates and affordable conditions to find their Florida dream home – but overly restrictive lending requirements continue to create barriers to homeownership for qualified homebuyers. To re-energize the housing market and the economic recovery, we need improved access to affordable financing options for qualified buyers and investors.”In December, a total of 15,290 existing single-family homes sold statewide, a decrease of 2 percent from the 15,546 homes sold in December 2010. The statewide existing home median sales price last month was $134,300, up 1 percent from the $133,000 reported in December 2010, according to Florida Realtors’ data. The national median existing single-family home price was $165,100 in December, according to the National Association of Realtors® (NAR). The median is the midpoint; half the homes sold for more, half for less.In the year-to-year comparison for statewide existing condo sales, a total of 6,836 units changed hands last month, compared to 6,985 condos sold in December 2010 for a decrease of 2 percent. The statewide existing condo median sales price in December was $91,900, up 4 percent from the $88,400 reported a year earlier. The national median existing condo price was $160,000 in December, according to NAR.“Although sales were down slightly in December, they’re up strongly for the year, which reinforces the reality that Florida is in a slow real estate recovery,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Our expectation is that recovery will continue through 2012. The major obstacle in the market is the inadequate accessibility to financing. Prices are moderating, but we don’t expect too much movement owing to the continuing significance of distressed properties.”In December, the interest rate for a 30-year fixed-rate mortgage averaged 3.96 percent, down from the 4.71 percent average during the same month a year earlier, according to Freddie Mac. The annual average rate for a 30-year mortgage in 2011 was 4.45 percent. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.© 2012 Florida Realtors®The Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-56107435540204168272012-01-17T10:53:00.000-08:002012-01-17T11:03:46.434-08:00MIAMI – Jan. 16, 2012 – Condo Vultures founder Peter Zalewski sees more confidence in the real estate market this year, as high-rise towers return and prices for luxury real estate inch off a bottom. That could be a problem.“My biggest concern for 2012 is bravado,” he told an audience during a Friday morning panel discussion on the development industry. “You are starting to see some egos return. You’re starting to see some optimism in pricing.”Optimism – or what passes for optimism in the post-bust South Florida – set the tone for the Greater Miami Chamber of Commerce’s second annual economic forum.Bankers said they had money to lend, but few businesses profitable enough for safe loans. Builders said they were almost certain housing prices have finally hit a bottom.Trade and tourism watchers said foreign buying power continues to shield South Florida from the full impact of domestic economic woes.Zalewski, who started his Vultures brokerage six years ago in anticipation of a historic real estate bust, specializes in distressed real estate. With condo towers in pre-sales once again and some going vertical, he warned that developers may once again be over-estimating demand for pricey apartments.“There’s been a lot of hoopla. If these things stall in their tracks, it could create some bad buzz that I think would take us a long time to recover from,” said Zalewski, who also writes a monthly column for The Miami Herald’s Business Monday magazine.Several speakers at the daylong event at Jungle Island shared an outlook that conditions have improved enough to make 2012 a turning point, with growth slowly gaining steam toward normalcy. But memories of past optimism tempered some of the rosy comments.Ramiro Ortiz, a Miami banker turned consultant, opened a finance and retail discussion by reminding the audience that, in the same room last year, speakers were bidding good riddance to 2010 and expecting a strong 2011.“Here we are a year later,” he said. “I would say good riddance to 2011.”Among the highlights from Friday’s forum:• Miami-Dade’s retail industry is performing well. Allen Morris, CEO of the Allen Morris Co. commercial brokerage, said retail vacancies were a fraction of the office sector. Only about 4 percent of Miami-Dade’s retail space is available, compared to about 14 percent for office. Industrial space falls roughly in the middle at 8 percent vacant.• Bank executives insisted they want to lend money, but that demand from small businesses is too low.“Whoever wants it, come and get it,” said Adolfo Henriques, president of Gibraltar Private Bank in Miami. “We are flush with cash.”He said his staff rarely hears from stable businesses looking for a loan to fund growth. Instead, most loan requests come from marginal companies needing cash to survive.• Don’t expect a housing rebound to spark a big return to hiring in the building industry. Carlos Gonzalez, head of the Southeast Florida division for Lennar, said the national homebuilder expects to expand in 2012. But its payrolls won’t, at least not locally.“I don’t see any hiring this year,” he said. “I am growing my business.”• The construction industry shakeout continues. Ed McNeil, head of Florida operations for Turner Construction, said the widespread failures of contractors in commercial building did not materialize in 2009 and 2010, despite a nearly idle industry. But in 2011, firms began to go bankrupt and he expects more in 2012. “How long can you hold your breath in this distressed market?”• Presidential politics looms large in predicting the future of finance. Ken Thomas, a local banking consultant, said he expects the Federal Reserve to continue pumping cash into the financial system by launching a third effort called “quantitative easing” or “QE3.”Thomas said the influx of cash should help the economy in the short term, boosting President Barack Obama’s reelection chances. The president appoints the Fed chairman, currently Ben Bernanke.“Ben Bernanke wants to keep his job,” Thomas said. “No Republican will keep him. The only one who will is Obama.”• Corporate America seems extremely poised for major hiring and spending.James Glassman, an economist with JPMorgan, presented data showing national business profits were up at levels far above past recoveries. He expected that to spark more hiring, particularly among younger workers, who have been hit hardest by the unemployment crisis. As younger workers feel secure in their careers, first-time homebuyers should surge after years of delayed purchases.He compared the current dynamics to the 1950s, when homebuying soared as an entire generation of young people made up for lost time.“The recession is doing to our young people what the war did to the baby boomers,” he said, referring to the generation born after World War II as the country returned to normalcy. “Young people are seeing their situations improve the most.”Copyright © 2012 The Miami Herald, Douglas Hanks. Distributed by MCT Information Services.The Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-13944628892139423442012-01-17T10:52:00.000-08:002012-01-17T10:53:44.583-08:00MIAMI – Jan. 16, 2012 – Foreign investors are finding plenty of deals in the U.S. when it comes to real estate, and, as such, more international investors are flocking to key states to buy their piece of the American Dream.Mexico is the top country of origin for foreign buyers purchasing U.S. homes, according to a recent study by Credit Sesame, which used National Association of Realtors® data for its findings.“In this period of tremendous uncertainly globally, real estate here is a safe haven,” Susan Wachter, professor of real estate and finance at The University of Pennsylvania, told MSNBC.com.The top destinations of foreign investors for U.S. real estate purchases are:1. Florida: Thirty-one percent of all home purchases are made by foreign buyers, with most coming from Cuba, Haiti and Colombia.2. California: Twelve percent of all home purchases, with most coming from Mexico, the Philippines, China, India and Vietnam.3. Texas: Nine percent of all home purchases, with most coming from Mexico, India, Vietnam, China and the Philippines.Source: “Housing more affordable than ever ... for foreign investors,” MSNBC.com (Jan. 13, 2012)© Copyright 2012 INFORMATION, INC. Bethesda, MDThe Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-67938787743737582192012-01-13T12:31:00.000-08:002012-01-13T12:33:45.122-08:00WASHINGTON – Jan. 13, 2012 – Fannie Mae says it will provide more mortgage aid to the unemployed, possibly extending the forbearance period up to a year for those who qualify.Starting on March 1, Fannie Mae will require mortgage servicers to extend the forbearance relief to qualified unemployed borrowers for six months – without any approval needed from Fannie Mae. The government-sponsored enterprise also says special consideration will be made for some borrowers in suspending mortgage payments or reducing them for up to a 12-month period.Fannie’s announcement follows on the heels of Freddie Mac’s announcement earlier this week about similar changes to its mortgage relief program for the unemployed. Freddie Mac announced it would begin offering a 12-month forbearance period to qualified unemployed borrowers starting on Feb. 1.To qualify, mortgage servicers will determine if the “borrower has less than 12 months worth of mortgage payments in reserves and has monthly housing expenses above 31 percent of their incomes before extending a forbearance plan,” HousingWire reports.During the third quarter of 2011, the GSEs issued more than 7,000 forbearance plans, according to the Federal Housing Finance Agency.Source: “Fannie Mae Unveils new Forbearance Program for Unemployed,” HousingWire (Jan. 11, 2012)© Copyright 2012 INFORMATION, INC. Bethesda, MDThe Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-34187926174753523082012-01-13T12:29:00.000-08:002012-01-13T12:31:09.423-08:00WASHINGTON – Jan. 13, 2012 – Fixed mortgage rates fell once again to a record low, offering a great opportunity for those who can afford to buy or refinance homes. But few are able to take advantage of the historic rates.Freddie Mac said Thursday the average rate on the 30-year fixed mortgage fell to 3.89 percent. That’s below the previous record of 3.91 percent reached three weeks ago.Records for mortgage rates date back to the 1950s.The average on the 15-year fixed mortgage ticked down to 3.16 percent. That’s down from a record 3.21 percent three weeks ago.Mortgage rates are lower because they track the yield on the 10-year Treasury note, which fell below 2 percent. They could fall even lower this year if the Fed launches another round of bond purchases, as some economists expect.Average fixed mortgage rates hovered around 4 percent at the end of 2011. Yet many Americans either can’t take advantage of the rates or have already done so. High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don’t want to sink money into a home that they fear could lose value over the next few years.Mortgage applications have fallen slightly on a seasonally adjusted basis over the past four weeks, according to the Mortgage Bankers Association.Frank Nothaft, Freddie Mac’s chief economist, said that until hiring picks up and unemployment drops significantly, the impact of lower mortgage rates will remain muted.Previously occupied homes are selling just slightly ahead of 2010’s dismal pace. New-home sales in 2011 will likely be the worst year on records going back half a century.Builders hope that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose in December to its highest level in more than a year.To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.The average fee for the 30-year loan fell to 0.7 from 0.8; the average on the 15-year fixed mortgage was unchanged at 0.8.For the five-year adjustable loan, the average rate declined to 2.82 percent from 2.86 percent. The average on the one-year adjustable loan fell to 2.76 percent from 2.80 percent.The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.Copyright © 2012 The Associated Press, Derek Kravitz, AP business writer. All rights reserved.The Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0tag:blogger.com,1999:blog-5172055442751828754.post-53228404754504178712012-01-12T20:34:00.000-08:002012-01-12T20:36:34.814-08:00MIAMI – Jan. 12, 2012 – Florida real estate brokers may be the cheeriest in the South.The latest Beige Book report from the Federal Reserve once again has the Sunshine State avoiding the general gloom hitting the housing industry throughout the Atlanta district, which spans the Southeast. While brokers in the region said November and December brought “soft” home sales, Florida said sales actually “rebounded” after a brief soft patch. The reason: international buyers and cash deals.Florida’s housing shout-out came in a relatively upbeat Beige Book, which the Fed issues about every six weeks as an anecdotal report card on the nation’s economic health. Most districts reported somewhere between “modest” and “moderate” growth, suggesting the recovery is holding steady.South Florida received two mentions, both tied to the region’s strong tourism rebound. Describing encouraging dispatches from tourism businesses throughout the Southeast, Fed authors wrote “South Florida in particular experienced greater travel activity from Canadians and South Americans.”In a more discouraging passage, the Fed said most Atlanta district business “contacts” said extra hiring in the winter was mostly “temporary and seasonal.”“However,” the report continued, “there were some scattered reports among healthcare and hospitality contacts in South Florida that hiring was occurring as a result of increased demand or expansion.”Indeed, healthcare and hospitality companies have accounted for almost 60 percent of the 28,000 jobs added in Broward and Miami-Dade counties in 2011.Only Nevada and California vied with Florida for being hardest hit by the housing crash, so it’s natural for Florida to enjoy a stronger turnaround than places where prices didn’t fall as far. Florida’s relative optimism on the sales front has been a recurring theme in the Beige reports this year.There is some reason to celebrate. Since 2008, only Nevada has seen home sales grow faster, according to the National Association of Realtors. In 2008, the real estate bubble was rapidly deflating. Since then, sales are up 47 percent in Florida. That’s far ahead of most states, but well behind Nevada, where sales are up 62 percent.Sales, though, remain depressed. They’re off 44 percent since Florida’s peak in 2006. Nationally, home values are off about 19 percent from their peak level in 2007, according to the Federal Housing Finance Agency.Copyright © 2012 The Miami Herald Distributed, Douglas Hanks, by MCT Information Services.The Fahey Grouphttp://www.blogger.com/profile/12458773654393668011noreply@blogger.com0