Fannie Names Former BofA Exec as New Chief
http://goo.gl/mYSX9
Timothy J. Mayopoulos, who was a general counsel at Bank of America during the financial crisis, has been named the next chief executive of mortgage giant Fannie Mae.
Mayopoulos, a lawyer, joined Fannie Mae as its general counsel in 2009 after leaving Bank of America.
He will take over June 18 for Chief Executive Michael Williams, who announced in January he would step down from Fannie once a new chief executive had been found. Mayopoulos will be Fannie’s third CEO since the government took over the mortgage giant.
“I am excited, but I’m not naïve,” Mayopoulos told The New York Times about his new role. “I know this is a very difficult and challenging job.”
Mayopoulos told the Associated Press that Fannie will continue to focus on helping distressed home owners and reducing losses on its loans. Fannie Mae last month posted its first profit since the government took conservatorship of it in 2008.
Among the decisions Mayopoulos faces in his new role is whether Fannie will permit principal write-offs on underwater home owners’ mortgages that it owns. Many members of Congress have supported the idea, while Fannie’s regulator has opposed it.
“I’ve been involved in examining that issue,” he told The New York Times. “We have the tools we need to assist home owners with troubled mortgages. I don’t believe we need principal forgiveness as a tool. We are already effective with the tools we have.”
Source: “Fannie Mae Names Its Top Lawyer as Chief,” The New York Times (June 5, 2012) and “Fannie Mae Names General Counsel Mayopoulos as New CEO,” The Associated Press (June 5, 2012)
Friday, June 8, 2012
Is the Housing Market Recovery Splitting in Two?
http://goo.gl/iYFNN
A new article at CNBC.com suggests that the real estate market is splitting in two, with the high-end segment soaring and the rest of the market continuing to struggle as it inches toward recovery mode.
“It’s become a tale of two markets,” Michael Simonsen, CEO of Altos Research, told CNBC.com. “At the high end, well-financed people have taken advantage of cheap money. And demand is up, inventory is down, and prices are responding.”
The article says that wealthy buyers tend to have good credit and are taking advantage of record low mortgage rates.
As such, in housing markets with median home prices of $1 million or more, home prices have jumped more than 10 percent year-over-year, according to Altos Research. Inventory is also down by 10 percent. What’s more, areas with a median home price of $10 million or more, home prices have risen 13 percent or more, according to Altos.
So how about the other “side” of the market? Unemployment and tightened lending conditions that have caused some buyers to struggle to obtain financing continues to slow the housing recovery, housing experts note.
Source: “Tale of Two Markets: No Downturn in Megahome Sales,” CNBC.com (June 5, 2012)
http://goo.gl/iYFNN
A new article at CNBC.com suggests that the real estate market is splitting in two, with the high-end segment soaring and the rest of the market continuing to struggle as it inches toward recovery mode.
“It’s become a tale of two markets,” Michael Simonsen, CEO of Altos Research, told CNBC.com. “At the high end, well-financed people have taken advantage of cheap money. And demand is up, inventory is down, and prices are responding.”
The article says that wealthy buyers tend to have good credit and are taking advantage of record low mortgage rates.
As such, in housing markets with median home prices of $1 million or more, home prices have jumped more than 10 percent year-over-year, according to Altos Research. Inventory is also down by 10 percent. What’s more, areas with a median home price of $10 million or more, home prices have risen 13 percent or more, according to Altos.
So how about the other “side” of the market? Unemployment and tightened lending conditions that have caused some buyers to struggle to obtain financing continues to slow the housing recovery, housing experts note.
Source: “Tale of Two Markets: No Downturn in Megahome Sales,” CNBC.com (June 5, 2012)
Higher the Walkability, Higher the Home Value
http://goo.gl/svWPv
A new study by the Brookings Institution found that the walkability of urban areas has a direct impact on real estate values and rents.
Using Washington, D.C., as a test case, the report identified five levels or steps in walkability. For every step up the walkability ladder, the price per square foot jumps more than $300 on average for apartment rents, versus $82 for house values, $9 for annual office rents, and $7 for retail rents. Moreover, with each step up the ladder, the average household income climbs $10,000.
Brookings senior fellow Christopher Leinberger says both city centers and suburbs are seeing an increase in demand for walkable space, noting that over half of walkable places in the Washington, D.C., area are in the suburbs. He says, "This trend is about both the revitalization of center cities and the urbanization of the suburbs." He adds that encouraging construction of more walkable places is a long-term solution to the affordability challenge, noting that it is cheaper on a usable square foot basis to build walkable urban infrastructure than drivable suburban infrastructure.
Source: "Now Coveted: A Walkable, Convenient Place" New York Times (05/25/12)
http://goo.gl/svWPv
A new study by the Brookings Institution found that the walkability of urban areas has a direct impact on real estate values and rents.
Using Washington, D.C., as a test case, the report identified five levels or steps in walkability. For every step up the walkability ladder, the price per square foot jumps more than $300 on average for apartment rents, versus $82 for house values, $9 for annual office rents, and $7 for retail rents. Moreover, with each step up the ladder, the average household income climbs $10,000.
Brookings senior fellow Christopher Leinberger says both city centers and suburbs are seeing an increase in demand for walkable space, noting that over half of walkable places in the Washington, D.C., area are in the suburbs. He says, "This trend is about both the revitalization of center cities and the urbanization of the suburbs." He adds that encouraging construction of more walkable places is a long-term solution to the affordability challenge, noting that it is cheaper on a usable square foot basis to build walkable urban infrastructure than drivable suburban infrastructure.
Source: "Now Coveted: A Walkable, Convenient Place" New York Times (05/25/12)
Millions of LinkedIn Passwords Leaked
http://goo.gl/BD7HT
A hacker has reportedly leaked nearly 6.5 million LinkedIn passwords.
LinkedIn on Wednesday issued an apology to its members for the security breach.
While the passwords are encrypted, security officials warn that hackers will likely be working to decrypt the stolen passwords, and account users would be smart to change their passwords as soon as possible.
LinkedIn issued a statement saying that any LinkedIn members with an account associated with one of the compromised passwords will receive an e-mail from LinkedIn with instructions on how to reset their password. Members with affected accounts will find that their compromised password will no longer work when they try to log-in.
“It is worth noting that the affected members who update their passwords and members whose passwords have not been compromised benefit from the enhanced security we just recently put in place, which includes hashing and salting of our current password databases,” LinkedIn officials said in a statement on its blog.
LinkedIn also offers tips on its site for how to update your password and how to improve the security on your account.
The security breach follows on the heels of a newly released report that says LinkedIn’s iPhone app is also collecting information from users’ Calendar app entries (including e-mail addresses of people you meet with, meeting subject, location, etc.) and transmitting it back to the company’s servers — often without the users’ knowledge. The company assures LinkedIn members that the information is encrypted and isn’t being shared. LinkedIn IOS app users can turn off the ability to “Add Calendar” in the Settings screen, the company said.
Source: LinkedIn Blog and “Millions of LinkedIn Passwords Reportedly Leaked Online,” CNET (June 6, 2012)
http://goo.gl/BD7HT
A hacker has reportedly leaked nearly 6.5 million LinkedIn passwords.
LinkedIn on Wednesday issued an apology to its members for the security breach.
While the passwords are encrypted, security officials warn that hackers will likely be working to decrypt the stolen passwords, and account users would be smart to change their passwords as soon as possible.
LinkedIn issued a statement saying that any LinkedIn members with an account associated with one of the compromised passwords will receive an e-mail from LinkedIn with instructions on how to reset their password. Members with affected accounts will find that their compromised password will no longer work when they try to log-in.
“It is worth noting that the affected members who update their passwords and members whose passwords have not been compromised benefit from the enhanced security we just recently put in place, which includes hashing and salting of our current password databases,” LinkedIn officials said in a statement on its blog.
LinkedIn also offers tips on its site for how to update your password and how to improve the security on your account.
The security breach follows on the heels of a newly released report that says LinkedIn’s iPhone app is also collecting information from users’ Calendar app entries (including e-mail addresses of people you meet with, meeting subject, location, etc.) and transmitting it back to the company’s servers — often without the users’ knowledge. The company assures LinkedIn members that the information is encrypted and isn’t being shared. LinkedIn IOS app users can turn off the ability to “Add Calendar” in the Settings screen, the company said.
Source: LinkedIn Blog and “Millions of LinkedIn Passwords Reportedly Leaked Online,” CNET (June 6, 2012)
Once-Battered Market Now Price-Gain Leader
http://goo.gl/MMiIW
The Phoenix housing market, which was flooded with foreclosures and underwater home owners and saw home values dip greatly during the housing crisis, is coming back strong. Home values in metro Phoenix and the rest of the state of Arizona are posting the fastest growth rates in the nation, according to CoreLogic home value data, which includes foreclosures and short sales.
In the Phoenix metro area, home values soared 11.3 percent year-over-year in April, marking the largest such gain out of the 10 largest U.S. metro areas. Dallas had the second-highest growth at 3.5 percent with home values year-over-year.
Meanwhile, the states with the highest year-over-year increase in home values from April are Arizona (8.8 percent increase), District of Columbia (6.4 percent), Florida (5.5 percent), Montana (5.4 percent), and Utah (5.4 percent).
Market on the Mend
Overall, recent housing reports have shown that the housing market is picking up across the country.
"Excluding distressed sales, home prices in March and April are improving at a rate not seen since late 2006 and appreciating at a faster rate than during the tax-credit boomlet in 2010," says Mark Fleming, chief economist for CoreLogic. "Nationally, the supply of homes in current inventory is down to 6.5 months, a level not seen in more than five years, in part driven by the ‘locked in’ position of so many home owners in negative equity."
Source: “CoreLogic: Phoenix Leads the Nation in Home Value Gains,” Phoenix Business Journal Online (June 5, 2012)
http://goo.gl/MMiIW
The Phoenix housing market, which was flooded with foreclosures and underwater home owners and saw home values dip greatly during the housing crisis, is coming back strong. Home values in metro Phoenix and the rest of the state of Arizona are posting the fastest growth rates in the nation, according to CoreLogic home value data, which includes foreclosures and short sales.
In the Phoenix metro area, home values soared 11.3 percent year-over-year in April, marking the largest such gain out of the 10 largest U.S. metro areas. Dallas had the second-highest growth at 3.5 percent with home values year-over-year.
Meanwhile, the states with the highest year-over-year increase in home values from April are Arizona (8.8 percent increase), District of Columbia (6.4 percent), Florida (5.5 percent), Montana (5.4 percent), and Utah (5.4 percent).
Market on the Mend
Overall, recent housing reports have shown that the housing market is picking up across the country.
"Excluding distressed sales, home prices in March and April are improving at a rate not seen since late 2006 and appreciating at a faster rate than during the tax-credit boomlet in 2010," says Mark Fleming, chief economist for CoreLogic. "Nationally, the supply of homes in current inventory is down to 6.5 months, a level not seen in more than five years, in part driven by the ‘locked in’ position of so many home owners in negative equity."
Source: “CoreLogic: Phoenix Leads the Nation in Home Value Gains,” Phoenix Business Journal Online (June 5, 2012)
Thursday, June 7, 2012
REO Price Increases Bode Well for Overall Market
http://goo.gl/sz8Vt
Recent price increases with bank-owned homes are helping to provide an overall boost to the housing market, a recent report from Clear Capital says.
Prices of REOs nationally rose 8.1 percent over year-ago levels on a median price-per-square-foot basis, according to Clear Capital’s May housing data.
“Strength in the REO-only price trends as well as some early indications of price gains spreading from low-tier sectors to the mid- and higher-priced homes is helping confirm that the country continues to make progress on its recovery,” says Alex Villacorta, director of research and analytics at Clear Capital. “We are expecting to see improvements extend over the next several months.”
Clear Capital also reported quarterly increases to overall prices, rising 0.4 percent for the quarter, the first quarterly gain posted since November 2011. The West saw the most growth in prices, rising 2.7 percent, followed by the South, with a 1.2 percent quarter-over-quarter gain, according to the report.
Source: “Improving Foreclosure Prices Drive Recovery,” RISMedia (June 6, 2012)
http://goo.gl/sz8Vt
Recent price increases with bank-owned homes are helping to provide an overall boost to the housing market, a recent report from Clear Capital says.
Prices of REOs nationally rose 8.1 percent over year-ago levels on a median price-per-square-foot basis, according to Clear Capital’s May housing data.
“Strength in the REO-only price trends as well as some early indications of price gains spreading from low-tier sectors to the mid- and higher-priced homes is helping confirm that the country continues to make progress on its recovery,” says Alex Villacorta, director of research and analytics at Clear Capital. “We are expecting to see improvements extend over the next several months.”
Clear Capital also reported quarterly increases to overall prices, rising 0.4 percent for the quarter, the first quarterly gain posted since November 2011. The West saw the most growth in prices, rising 2.7 percent, followed by the South, with a 1.2 percent quarter-over-quarter gain, according to the report.
Source: “Improving Foreclosure Prices Drive Recovery,” RISMedia (June 6, 2012)
Obama’s May Housing Scorecard: Market Stabilizing
http://goo.gl/MJsfY
The latest Housing Scorecard from the Obama administration showed real estate stabilizing in every region of the country, but it still has a long way to go in the road toward full recovery.
Existing-home sales increased 2.4 percent in April, according to the Obama administration’s Housing Scorecard for May. Sales also continued to outpace inventory levels. The inventory of homes for sale decreased to 5.1 month supply in April from 5.2 months in March. Also, according to the report, the inventory of newly constructed homes rose for the first time since April 2007.
HUD Acting Assistant Secretary Erika Poethig also notes that more borrowers are taking advantage of the government’s refinance programs to lower their mortgage payments, and adds foreclosure starts are declining.
“But with so many households still struggling to make ends meet it's clear that we have more work ahead," Poethig says.
Underwater mortgages continue to threaten the market recovery, the report notes. The number of borrowers who owe more than their home’s current value rose to more than 11 million. Seriously delinquent subprime mortgages also are on the rise.
To read the full report, visit www.hud.gov/scorecard.
Source: U.S. Department of the Treasury
http://goo.gl/MJsfY
The latest Housing Scorecard from the Obama administration showed real estate stabilizing in every region of the country, but it still has a long way to go in the road toward full recovery.
Existing-home sales increased 2.4 percent in April, according to the Obama administration’s Housing Scorecard for May. Sales also continued to outpace inventory levels. The inventory of homes for sale decreased to 5.1 month supply in April from 5.2 months in March. Also, according to the report, the inventory of newly constructed homes rose for the first time since April 2007.
HUD Acting Assistant Secretary Erika Poethig also notes that more borrowers are taking advantage of the government’s refinance programs to lower their mortgage payments, and adds foreclosure starts are declining.
“But with so many households still struggling to make ends meet it's clear that we have more work ahead," Poethig says.
Underwater mortgages continue to threaten the market recovery, the report notes. The number of borrowers who owe more than their home’s current value rose to more than 11 million. Seriously delinquent subprime mortgages also are on the rise.
To read the full report, visit www.hud.gov/scorecard.
Source: U.S. Department of the Treasury
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