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property���s current value. San Bernardino County and two of its cities, Ontario and Fontana, formed a JPA last year to consider the proposal. According to a release from San Bernardino County, the board decided against proposals that would consider the use of eminent domain, with board Chairman Greg Devereaux pointing out that many experts have warned of the impact eminent domain could have on the already weak local housing market. ���It���s wrong to impose that risk on the community without support from the community, and that level of support has not materialized,��� said Devereaux. ���We don���t want to do more harm than good in what we choose to do.��� Pending Home Sales Down in California; Distressed Sales Increase Pending home sales in California were brought down at the end of last year by lack of inventory while the share of distressed sales increased, according to data from the California Association of Realtors (C.A.R.). C.A.R���s Pending Home Sales Index (PHSI) decreased 20.5 percent month-overmonth as the index slipped from November���s revised 103.5 to December���s 82.3. Year-overyear, pending sales were down 6.5 percent from December 2011. After seeing declines, the combined share of all distressed property sales ticked KNOW THIS At the end of December 2012, 59 percent of California���s foreclosure sales were repossessed by the banks, in comparison to the more than 40 percent sold to third parties, according to ForeclosureRadar.com. 80 up to 36.4 percent in December, up from 35.1 percent in November, but down from 51.6 percent in December 2011. In particular, the share of short sales increased, rising to 25 percent in December, up from 23.4 percent in November and up from 24 percent a year ago. While short sales increased, the share of REO sales saw a small decrease, slipping to 11 percent from 11.3 percent in November. In December 2011, the share of REO sales was 27.2 percent. C.A.R. also noted the supply of REOs available for sale fell, with the Unsold Inventory Index at 1.9 months in December, down from 2.1 months in November. Non-distressed property sales saw the first decrease in 11 months, with the share of nondistressed sales down to 63.6 percent in December compared to 64.9 percent in November. Compared to a year ago, non-distressed sales were still up from 48.4 percent. National MI Approved by GSEs In January, Fannie Mae and Freddie Mac approved National Mortgage Insurance (MI) Corporation as an eligible mortgage insurer, the new private insurer announced. According to National MI, the GSEs have indicated they will be ready to accept loans insured by the company in the second quarter of 2013. ���These approvals by Fannie Mae and Freddie Mac mark a huge milestone for National MI,��� said Bradley Shuster, president and CEO of National MI. ���I thank both enterprises for their prompt actions and for recognizing the importance of a new mortgage insurance entrant at this critical time for the housing industry.��� Shuster added National MI���s entry injects more than $500 million of private capital into the market and provides essential borrowing capacity to homebuyers who qualify for a mortgage, but may not possess a large down payment for a home. In 2012, NMI Holdings, Inc. was able to raise $550 million in private capital for the new venture. Founded by Shuster and Jay Sherwood, the California-based company is seeking to expand into all 50 states and is currently licensed in 24 states, as well the District of Columbia. National MI expects to receive approval from the remaining states during the next several months. ���National MI���s approval to provide mortgage insurance on loans delivered to Fannie Mae will provide greater capacity in the market,��� said Rob Schaefer, Fannie Mae VP of credit enhancement strategy and management. ���We appreciate National MI���s ongoing work to meet our eligibility requirements and look forward to working with them as they serve Fannie Mae and our lender partners.��� Home Sales, Prices in SoCal Rise: DataQuick The housing market in California���s Southland region closed out 2012 with the highest number of December home sales in three years, real estate information company DataQuick reports. According to DataQuick, a total of 20,274 new and resale homes and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino, and Orange counties in December. The month���s total was 5.1 percent up from November and 5.3 percent up from December 2011. While the region usually sees a rise in sales in the last month of the year, December���s volume was the month���s highest since December 2009, when 22,328 homes sold. In addition, the median price paid for a home in the Southland was $323,000, up 0.6 percent from November and 19.6 percent year-over-year. According to DataQuick, Southland���s median price has risen or held steady month-to-month for 11 consecutive months and has increased on a year-over-year basis for nine consecutive months. ���The housing market had more to offer in 2012 than many anticipated,��� said DataQuick president John Walsh. ���A lot of markets not only found a price bottom as foreclosures waned but they started to see their first meaningful gains in nearly two years. Buyers on the fence were drawn back into the housing game by amazingly low mortgage rates, a brighter jobs outlook, and, in some cases, a renewed sense of urgency.��� The rise in median prices was also driven by an increase in sales in mid- to high-cost markets. Home sales between $300,000 and $800,000 (a range that includes many moveup buyers) increased 31.4 percent year-overyear. Sales more than $500,000 increased 40 percent year-over-year, while sales more than $800,000 rose 36.3 percent. Lower-cost areas, on the other hand, posted the weakest sales compared to last year. The number of homes sold below $200,000 fell 28.1 percent year-over-year, while sales below $300,000 slipped 18.2 percent. DataQuick attributes the declines to a slowdown in fore-

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