Investors Try Out New Approach

Investors Try Out New Approach
Build to Rent: As the number of foreclosed homes dries up in some markets, some investors are looking elsewhere for properties to turn into rentals. With the rental market still strong, some investors are either buying finished single-family homes that they can use as rentals or even developing vacant lots to turn into rentals from the ground up, Apartment rents have been on the rise, increasing 11.3 percent since 2009, according to Reis Inc. Investors have turned a high number of single-family homes into rentals. As of last year, about 15 million single-family homes nationwide were rentals -- up from 10.8 million in 2005. See Mortgage Rates Reverse Trend, Heading Higher

Singles and First-Timers Squeezed Out

Singles and First-Timers Squeezed Out
The latest research on home buyers from the National Association of REALTORS® shows the effects of tight mortgage lending standards on the market.
The association says that these conditions are keeping qualified buyers, especially singles and first-time buyers, from reaching their dreams.
“Single home buyers have been suppressed for the past three years by restrictive mortgage lending standards, which favor dual-income households who are more likely to have higher credit scores,” says Lawrence Yun, NAR chief economist. He added that “historically, first-time buyers are instrumental in housing recoveries because they help existing home owners sell and make a trade See the 10 Best Cities for the Young: Salt Lake City on this list.....

Fannie,Freddie Retain HigherPriced Mortgage Limits

Fannie,Freddie Retain HigherPriced Mortgage Limits

Mortgage giants Fannie Mae and Freddie Mac will continue to fund higher-priced mortgages at current limits at least through the middle of next year, federal regulators announced. 

The Federal Housing Finance Agency, which oversees Fannie and Freddie, was planning to lower limits by the end of the year in a move designed to decrease its role in the market and bring more private capital to the mortgage business. But Ed DeMarco, FHFA acting director, says: 'We are not making a change there in the immediate term.”

In 2008, government-backed mortgage limits were increased from $417,000 to up to $729,750 in some high-cost areas. In 2011, limits were reduced to $625,500 in high-cost areas, but FHA’s limits remain at $729,750. The limits were scheduled to decrease at the end of this year.  iFHFA to Stop 'Forced' Homeowner's Insurance learn more...

New Wave of Delinquencies from ARM Resets Unlikely

New Wave of Delinquencies from ARM Resets Unlikely
Concerns of a new wave of problem loans caused by unsustainable rate resets on adjustable-rate mortgages (ARMs) are largely unfounded, according to Lender Processing Services (LPS).

LPS conducted an in-depth analysis of the outstanding hybrid ARM population and found that the majority—63 percent—have already reset from their initial rates.
Of the remaining 37 percent that have yet to reset, three-fourths were originated in post-crisis years when lending criteria was tighter and most new loans went to borrowers with credit scores of 760 or above—an attribute that LPSsays suggests they are less likely to default in any type of scenario. Learn more ...

Fannie Mae reduces its max LTV to 95

Fannie Mae reduces its max LTV to 95

Does the data support the move? As of November 1, 

Fannie Mae is no longer purchasing loans without minimum down payments of at least 5 percent. Industry experts with the Urban Institute’sHousing Finance Policy Center argue this move is arbitrary and likely to provide little benefit to the GSE or to taxpayers.

Fannie Mae’s decision to lower its maximum threshold for loan-to-value (LTV) ratios from 97 percent to 95 percent follows a similar decision by Freddie Mac a few years ago.See new rules at our website.

A nation of renters? Not so, Say delinquent borrow

A nation of renters? Not so, Say delinquent borrow

Report after report suggests that Americans have become wary of homeownership and prefer the lack of commitment that often accompanies renting.

But one group who should be rather wary of homeownership says this just isn't the case.

When asked if renting or homeownership is better for building up wealth, 74% of delinquent borrowers sided with owning. Seventy-percent said it was better in terms of their overall tax situation, while 73% said ownership is better than renting when it comes overall financial health. Delinquent borrowers also want to save their homes, but where they are not succeeding is when it comes to refinancing. But aside from that, homeownership remains a dream for most of them even if they are facing a few dark hours in the process of keeping the dream alive. 

See Mortgage Rates Fallto Lowest Levels Since June:

Home Price Increases Widen in September

Home Price Increases Widen in September

Sales Weaken: After taking a break in the summer, home price growth got back up to strength in September,

DataQuick, a specialist in property information and decisioning solutions, reported price growth “resumed at a rapid rate in September and spread to all” of its 42 reporting counties on a monthly, quarterly, and yearly basis.
Other consequences to look out for: “[C]ontinued single-family rental demand driven by decreases in home affordability, sustained risk of home price corrections and stringent mortgage credit standards, and an increase in purchases by investors” driven by the two preceding factors.
See: 10 Turnaround Towns Leading the Recovery: