Article Archive for June 2012
By Tory Barringer | 06/29/2012
The Office of the Comptroller of the Currency released the findings of its 18th annual Survey of Credit Underwriting Practices, showing that credit writing standards were mostly unchanged from the year before. The survey, which included federal savings associations for the first time, examined the underwriting standards of 87 banks with assets of $3 billion or more in the 12-month period ending February 29. Underwriting standards largely remained the same despite some easing in standards for retail and commercial products.
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By Mark Lieberman, Five Star Institute Economist | 06/29/2012
First time claims for unemployment insurance fell to 387,000 for the week ended June 23, from the prior week’s 392,000, (revised from the originally reported 387,000) the Labor Department reported Thursday. Economists had expected the report would show 386,000 initial claims.
The drop in claims was first in three weeks, but more significant was the increase in the prior week's report – matching the 392,000 claims recorded for the week ended April 21 which had been the highest since last November.
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By Abby Gregory | 06/29/2012
Home construction starts are on the rise in 2012, and updates to a recent survey from the McGraw-Hill Companies indicate a forecasted increase of 2 percent for the year. According to projections from the 2012 Dodge Construction Outlook Midyear Update, total construction starts will hit $445 billion, besting the $434 billion recorded during 2011. Compiled by McGraw-Hill Construction, the outlook report calls the predicted performance "slightly better than" flat in a still-recovering economy dogged by recurring problems.
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By Abby Gregory | 06/29/2012
A new survey from Mortgagebot includes promising findings for community-based lenders hoping to increase their market share. The technology company's recent report shows that upticks in visibility and accessibility via online channels can help level the playing field for smaller lenders competing with the nation's big banks. Mortgagebot's study revealed specific strategies that are enabling the company's clients to capitalize on market share including generating better borrower-facing accessibility online, targeting new customers through an online approach that is tailored to a particular demographic.
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By Tory Barringer | 06/29/2012
CitiMortgage announced Thursday the launch of its proprietary “Citi Military Road to Recovery Tour” designed to help current and former Armed Services members who need assistance with their mortgages. The tour will feature five homeowner-support events near military bases all around the United States. At these events, Citi’s Homeowner Support Travel Team of mortgage experts and HUD-approved housing counselors will have individualized discussions with both current service members and veterans. The first event will take place in San Diego, California on June 29.
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By Abby Gregory | 06/29/2012
Landmark Mortgage Group has added a new advisor to its roster of lending and real estate professionals. The company recently promoted Adina Erridge to mortgage advisor from her previous role as a production assistant.
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By Abby Gregory | 06/29/2012
For baseball fans, it doesn't get any greater than Babe Ruth, and now that a Massachusetts estate once belonging to Ruth is on the market, homebuyers have the chance to live like the Sultan of Swat. The property, which is known as Home Plate Farm, is listed for $1.
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By Mark Lieberman, Five Star Institute Economist | 06/29/2012
Consumer spending fell $4.7 billion, less than 1 percent in May, reversing the 0.15 percent increase in April, the Labor Department reported Friday. Personal income meanwhile grew $25.4 billion or 0.18 percent, down from April's 0.22 percent growth. The numbers suggest GDP growth for the second quarter which ends Saturday could be slip from the first quarter's weak 1.9 percent growth rate. In dollars, income growth in May was less than the $29.4 billion in April, while spending fell from a gain of $16.2 billion in April.
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By Ryan Schuette | 06/28/2012
If it becomes law, a Senate bill could increase the number of homeowners who refinance under the Home Affordable Refinance Program by up to 13 million. That's the consensus reached by professors with Columbia University Business School, which released the study on Thursday. The study sketched the likely effects of a bill recently co-sponsored by Sens. Barbara Boxer and Robert Menendez. Researchers said that new HARP modifications could lead to roughly $35 billion in savings for homeowners, a number that could help stem the rate of foreclosure activity nationally.
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By Krista Franks Brock | 06/28/2012
At a House of Representatives hearing titled Appraisal Oversight: The Regulatory Impact on Consumers and Business Thursday, lawmakers reviewed testimony on recent and impending changes in the appraisal industry. One of issue of focus during the hearing was the rise of appraisal management companies and their validity and necessity in the market. According to a recent report by the Government Accountability Office, AMCs have grown from 15 percent market share to between 60 and 80 percent market share.
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By Tory Barringer | 06/28/2012
The CFPB released a report Thursday showing that although reverse mortgages are meant to help borrowers in retirement, they are in fact causing problems for many who don’t fully understand them. A reverse mortgage is a type of home loan that lets older homeowners access the equity they have built up on their homes and defer loan payment until they sell the home, move out, or pass away. The original purpose of reverse mortgages was to allow these homeowners to convert home equity into retirement income.
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By Tory Barringer | 06/28/2012
Mortgage rates remained somewhat flat for the week ending June 28, according to Freddie Mac’s Primary Mortgage Market Survey. Average fixed mortgage rates remained largely unchanged, helping to keep affordability high for buyers in the market to purchase a home or looking for a refinance. The 30-year fixed averaged 3.66 percent (0.7 point), staying level with the all-time low that was achieved the previous week. At this time in 2011, the 30-year fixed averaged 4.51 percent. The 15-year fixed averaged 2.94 percent (0.7 point), down slightly from 2.95 percent the previous week.
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By Mark Lieberman, Five Star Institute Economist | 06/28/2012
The US economy grew at an annual rate of 1.9 percent in the first quarter, the Labor Department said Thursday. The BEA report was consistent with market expectations but emphasized a moribund economy. The economy had expanded at a 3.0 percent pace in the fourth quarter of 2011. In economic measurement terms, these data are ancient economic history, since the second quarter ends Saturday. The advance first quarter GDP report will be released on July 27. The data released so far for April, May, and early June suggest second-quarter 2012 economic activity may have grown even less rapidly.
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By Krista Franks Brock | 06/27/2012
Mortgage applications decreased 7.1 percent over the week last week with an 8 percent decline in refinance applications contributing largely to the decrease, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The decline was the same for an unadjusted and seasonally adjusted index. The percentage of mortgage applications made up by refinance applications fell slightly from 80 percent the previous week to 79 percent for the week. Interest rates for 30-year fixed-rate loans – with both conforming and jumbo loan balances – increased slightly for the week.
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By Ryan Schuette | 06/27/2012
The Consumer Financial Protection Bureau faces a new legal challenge as a Texas community bank and two conservative groups launch a lawsuit to undo it and the financial reform law that created it two years ago. The Big Spring, Texas-based State National Bank recently paired with the Competitive Enterprise Institute and 60 Plus Association to sue the embattled consumer bureau in federal court. The suit challenges the constitutionality of the CFPB and Dodd-Frank Act, as well as Richard Cordray's appointment.
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By Abby Gregory | 06/27/2012
LenderLive Network Inc. is welcoming a new client for its loan fulfillment program. The company recently announced that Illinois-based Alliant Credit Union has selected LenderLive's end-to-end mortgage servicing platform, eOriginator.
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By Abby Gregory | 06/27/2012
Legendary Hollywood couple Warren Beatty and Annette Bening are selling their Beverly Hills home. The Beatty-Benings put their luxury pad up for for lease last year, but after failing to snag an interested tenant, they've listed the property, which is located on famed Mullholland Drive, for $6.995 million.
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By Tory Barringer | 06/27/2012
SIGTARP announced Tuesday that a Virginia man was sentenced earlier in the week to more than seven years in prison for running a fraudulent mortgage-rescue business. Howard R. Shmuckler of Virginia Beach, Virginia, was sentenced to 90 months in prison followed by three years of supervised release. He was found guilty of running a mortgage-rescue business that received substantial amounts in fees but only modified clients’ mortgages in a few cases. Shmuckler pleaded guilty to six counts of wire fraud on April 10.
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By Mark Lieberman, Five Star Institute Economist | 06/27/2012
The Pending Home Sales Index rose a strong 5.9 percent in May to 101.1, returning to its level of March, the National Association of Realtors said Wednesday. The index had slipped in April to 95.5 after reaching its highest level since April 2010. The index is up a solid 13.3 percent since May 2011. The report is another in a string of positive signs for the housing sector. Pending home sales are counted when sales contracts are signed, and are viewed as a leading indicator of existing home sales, according to NAR.
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By Krista Franks Brock | 06/26/2012
April marked the second consecutive month of monthly home price gains but posted a 2.4 percent decline year-over-year, according to FNC’s Residential Price Index. However, FNC notes that the yearly decline “marks the slowest pace of price declines since the housing crash.” FNC, an appraisal technology provider, recorded a 0.6 percent price increase in April based on prices in the 100 largest metropolitan areas. FNC relies on public records and real-time appraisals of neighborhoods and properties. Some cities to experience declines in April do not appear to be anomalous.
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