News

Housing permits soared in May to their highest level since September 2008, surging 7.9 percent to 780,000, the Census Bureau and Department of Housing and Urban Development reported jointly Tuesday but housing starts dropped 4.8 percent to 708,000 giving back all of April's gain. At the same time, permits for April were revised upward to 723,000 from the originally reported 715,000. April housing starts were also revised upward to 744,000 from the originally reported 717,000.

The middle class seemed to take another drubbing Monday with news that U.S. median household net worth fell 35 percent between 2005 and 2010. Excluding home equity, the Census Bureau found that median household net worth ticked up by 8 percent during the financial crisis. Who got hit the hardest? Of the many age groups, heads of households from 35 to 44 accounted for nearly 60 percent of the decline in net worth during the five-year period. But they weren't alone: Median net worth also declined for all age groups between 2005 and 2010.

Home prices and mortgage delinquencies appear to be stabilizing, but how well U.S. residential mortgage backed-securities (RMBS) issued before 2008 perform will depend on three key variables, according to a Standard and Poor's report. Those three variables are collateral performance, the effectiveness of structural protections, and the behavior of transaction parties such as servicers and bond trustees.

As an additional measure against fraud, the FHFA announced an initiative requiring Fannie Mae, Freddie Mac, and the Federal Home Loan (FHL) Banks to notify the agency when an act of fraud is committed by an individual or company the regulated entities conduct business with. The initiative is called the Suspended Counterparty Program and will take effect August 15, 2012. The FHFA stated it is taking this additional step to ensure the regulated companies are not exposed to unnecessary risk from business dealings involving those who have a history of fraudulent conduct.

At a Long Island Housing Partnership event Monday, New York Attorney General Eric Schneiderman announced the launch of the Homeowner Protection Program, a commitment of $60 million over three years to fund housing counseling and legal services for the state's homeowners.

On July 1, borrowers wanting to take out an FHA-insured loan would have potentially experienced a closing delay of 3 months or more if they had debt totaling or exceeding $1,000. Now, the FHA ""credit-dispute"" rule has been withdrawn, according to an agency letter released Friday. A HUD spokesperson said in an email that the decision to rescind the earlier proposal was based on input received. A new guidance on the issue will also be published very soon, the spokeperson stated.

The housing market in California looked sunny in May with strong sales and stabilizing home prices, the California Association of Realtors (C.A.R.) reported Friday. A release from the association showed that home prices in the state posted gains for the third consecutive month, and home sales finished well above last year's pace. Closed escrow sales of existing, single-family detached homes in California rose 3.4 percent to a seasonally adjusted annualized rate of 572,260. This is up from April's revised rate of 553,670 and is a 21.5 percent increase from 470,910 in May 2011.

As of Monday, Coester Appraisal Group is now CoesterVMS. According to a release from CoesterVMS, the new name reflects the company's new, expanded line of valuation management services.

Builder confidence rose one point in June to 29, its highest level since May 2007, the National Association of Home Builders reported Monday. The Index for May, originally reported as 29, was revised down to 28. Economists had expected the Index to be flat compared the original report for May. The total Index in June was up 16 points from June 2011, the strongest year-year gain since December 1998. The Index has improved year-year for 12 straight months as it did from July 2009 through June 2010 before going into a five month swoon.

Wells Fargo recently announced that it will accept refinance applications for homeowners with FHA mortgages only if their loans are serviced in-house by the mortgage lender. Vickee Adams, a spokesperson for Wells, said in an e-mailed statement that the lender currently services more than 500,000 customers with FHA home loans that could qualify to save money by refinancing under changes at the agency. The lender will start accepting only refinance applications for in-house loans on Tuesday.