News

JPMorgan Chase kicked off the banking sector's second-quarter earnings season with a $5.4 billion profit. It was followed by Citigroup's announcement that it pulled in net income of $3.3 billion. Both beat market expectations, however, neither lender escaped mortgage-related losses - a trait that is likely to show up on balance sheets throughout the industry as banks continue to grapple with delinquencies and additional costs tied to foreclosure reviews and litigation.

In recent years, the nation's homeownership rate has dropped closer to historical averages, after hitting an all-time high of 69.2 percent in 2004. The rate may fall even further, according to a paper by the Mortgage Bankers Association's Research Institute for Housing America (RIHA). The first-quarter U.S. homeownership rate was 66.4 percent, and analysts at RIHA suggest homeownership could drop by one or two more percentage points due to factors such as tightened credit.

President Obama on Sunday announced his pick to lead the new Consumer Financial Protection Bureau (CFPB) - Richard Cordray, former attorney general for the state of Ohio. Cordray was selected to build out the Bureau's enforcement team in December. The president plans to formally nominate Cordray for the top post at the CFPB on Monday. His appointment must still be approved by the Senate.

Denver-based Realis Real Estate Software (formerly REO Maestro) is launching a new software product for agents and brokers working with short sales. The new program, Prelude, is designed to allow real estate professionals to manage multiple short sale properties efficiently and effectively. Prelude will be available as a separate software platform and as an extension of Maestro, Realis' flagship product. The product includes a forms library, auto package generation, and borrower access.

Five years into the housing slump, and home sales remain weak with prices falling again in many parts of the country as foreclosures and short sales are ramping up. Mark Zandi, chief economist for Moody's Analytics, says while it certainly won't be the popular move, it may be time for the government to step up temporary support for the housing market. Zandi underscores three policy recommendations that he believes could help ensure housing stays on course.

Last year, banks seized more than one million properties. Lax underwriting standards during the boom years served as the catalyst for a housing bust that upended not only the mortgage market but the entire U.S. financial system, and has left scores of foreclosures, delinquencies, and vacant homes in its wake. In order to see what changes the lending community has made, the ratings agency DBRS decided to do a side-by-side comparison of the criteria for obtaining a prime mortgage in 2007 versus today's requirements for prime qualification.

The Federal Trade Commission will no longer enforce most provisions set forth in the Mortgage Assistance Relief Services Rule, according to a recent statement. The MARS Rule required real estate agents to make several disclosures when assisting distressed homeowners in obtaining short sales from their lenders or servicers. The rule also banned advance fee collection and prohibited false or misleading statements. After the Rule was enacted by Congress, several real estate agents complained that the disclosures often confused homeowners or misled them.

At current the current sales pace, Orlando has a 4.37-month supply of homes. This is the lowest rate reported since December 2005. The average home sold in Orlando in June sold for 95.15 percent of its listing price.

The Helping Responsible Homeowners Act, which aims to help underwater homeowners refinance their loans at historically low interest rates, is gaining support. Sen. Barbara Boxer of California says her bill, which was introduced in January, is now being co-sponsored by Sen. Johnny Isakson of Georgia, who previously ran one of the largest independent real estate brokerages in the country. The Helping Responsible Homeowners Act would eliminate barriers blocking millions of non-delinquent homeowners from refinancing.

June marks the fourth straight month of increasing home prices while also showing a rise in sales transactions, according to RE/MAX's National Housing Report for June 2011. While demonstrating a 4.9 percent drop in prices on a year-over-year basis, the drop was smaller than it has been the previous three months. Closed transactions in June rose 7.4 percent from May but showed a year-over-year decline of 10.6 percent. The median sales price in June 2011 was $193,791, while the June 2010 median was $203,887.