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46 FREDDIE MAC SCALES BACK EXPECTATIONS FOR 2014 Despite a disappointing first quarter and a mediocre second quarter, Freddie Mac still expects the economy to improve throughout the second half of 2014. e company is, however, tempering its New Year's optimism. In its June U.S. Economic and Housing Market Outlook, Freddie offered a mid-year assessment that predict, more humble growth in gross domestic product that mirrors the 2- to 2.5- percent growth that the economy has seen the past few years. Contributing to this modest growth will be an upswing in the workplace. U.S. unemploy- ment is down from 6.7 to 6.3 percent, and May showed the fourth straight month in which 200,000 new jobs were created. For housing, the better news is that construc- tion jobs are picking up, particularly in the resi- dential building and specialty trade sector. ese areas are averaging about 9,500 jobs per month so far this year. Still, there's hardly cause for joyous bell- ringing just yet. "Construction has rebounded over the past two years but is still significantly below the levels one would expect to see given projections of household formations," said Frank Nothaft, Freddie Mac's chief economist. Nothaft is also tenuous in his view of the overall housing picture. "We're nearly halfway through the year, and single-family housing remains weaker than we projected six months ago, while multifamily appears to be right on track," he said. Inventories of homes for sale are still limited in markets where sellers remain underwater or have decided to stick with the bargain-basement mortgage rates they refinanced or modified their loan into under government programs. is, Freddie reported, is holding back a full recovery in the overall sales market. "e important question is: How much further will prices and rents have to rise to give incentives for more existing owners to list their properties for sale and developers bring more sup- ply to the market?" Nothaft said. While the number of vacant units has de- creased overall by 4.2 percent since Q1 2010, the number of vacant units for sale has declined by 24.2 percent. And while homebuying has picked up since the end of March, activity is still down 13 percent compared to last year, Freddie reported. is has caused the agency to lower its overall homes sales forecast from 5.5 million to 5.4 million. e good news for Freddie is that the leveling-off of home sale prices should lead to more stable and sustainable gains. ough the enterprise's House Price Index was up 9.3 percent in 2013, Freddie expects gains to slow to 5 percent this year, though average apartment rents should rise 3 to 3.5 percent through 2015. Overall, Freddie expects the low vacancy rate and tight inventory to carry the housing market through its current above-inflation growth. e company just expects it to happen with a little less gusto than it imagined at the beginning of the year. CAPTURING TODAY'S DIVERSE OPPORTUNITIES Enterprising women- and minority-led groups are transforming markets across the country in their efforts to advance recovery. ONLY TIME WILL TELL Foreclosure timelines vary from state to state affecting Americans differently. Is this helping or hurting the industry? THE FINAL WORD ON SERVICING Now that the CFPB has unveiled its mortgage servicing rules, let's take a closer look at these definitive directives and what they mean for servicers. THE ABSOLUTE TRUTH Enforceability of absolute assignments in Chapter 11 can be highly unpredictable, with significant variance from jurisdiction to jurisdiction and judge to judge. Bankruptcy isn't the waiting game it used to be— government programs and settlement terms put homeowners and servicers on the same side of structured progress. default servicing in print and online @ dsnews.com 03.2013 Bankruptcy isn't the waiting game it used to be— RESOLUTION IN BANKRUPTCY DIVERSE OPPORTUNITIES Enterprising women- and THE ABSOLUTE TRUTH Enforceability of absolute assignments in Chapter 11 can be highly unpredictable, with significant variance from jurisdiction to jurisdiction and judge to judge. default servicing in print and online dsnews.com THE FINAL WORD ON SERVICING Now that the CFPB has unveiled its mortgage servicing rules, let's take a closer look at these definitive directives and what they mean for servicers. THE ABSOLUTE TRUTH Enforceability of absolute assignments in Chapter 11 can default servicing in print and online @ dsnews.com PINPOINTING REO VALUES When it comes to distressed addresses, the old adage rings true: It's all about location— of the asset, the economy, and the buyers. ENTER THE eNOTE Electronically signed promissory notes are landing on court dockets. Here's what pros need to know to avoid legal wranglings and get their judicial foreclosures off the ground. JUDICIOUS PROPERTY MANAGER NEEDED Amid budget cuts and promises to eliminate waste, the government is bleeding billions to maintain and secure vacant, underutilized federally owned properties. PINPOINTING REO PINPOINTING REO PINPOINTING REO PINPOINTING REO PINPOINTING REO PINPOINTING REO PINPOINTING REO PINPOINTING REO VALUES VALUES VALUES VALUES VALUES When it comes to When it comes to When it comes to When it comes to When it comes to When it comes to When it comes to distressed addresses, distressed addresses, distressed addresses, distressed addresses, distressed addresses, distressed addresses, distressed addresses, distressed addresses, the old adage rings true: the old adage rings true: the old adage rings true: the old adage rings true: the old adage rings true: the old adage rings true: the old adage rings true: the old adage rings true: It's all about location— It's all about location— It's all about location— It's all about location— It's all about location— It's all about location— It's all about location— of the asset, the economy, of the asset, the economy, of the asset, the economy, of the asset, the economy, of the asset, the economy, of the asset, the economy, of the asset, the economy, of the asset, the economy, of the asset, the economy, and the buyers. and the buyers. and the buyers. and the buyers. and the buyers. and the buyers. and the buyers. ENTER THE ENTER THE ENTER THE ENTER THE ENTER THE ENTER THE eNOTE NOTE NOTE NOTE Electronically signed Electronically signed Electronically signed Electronically signed Electronically signed Electronically signed Electronically signed Electronically signed promissory notes are landing promissory notes are landing promissory notes are landing promissory notes are landing promissory notes are landing promissory notes are landing promissory notes are landing promissory notes are landing promissory notes are landing promissory notes are landing on court dockets. Here's what on court dockets. Here's what on court dockets. Here's what on court dockets. Here's what on court dockets. Here's what on court dockets. Here's what on court dockets. Here's what on court dockets. Here's what on court dockets. Here's what on court dockets. Here's what pros need to know to avoid pros need to know to avoid pros need to know to avoid pros need to know to avoid pros need to know to avoid pros need to know to avoid pros need to know to avoid pros need to know to avoid pros need to know to avoid pros need to know to avoid legal wranglings and get legal wranglings and get legal wranglings and get legal wranglings and get legal wranglings and get legal wranglings and get legal wranglings and get legal wranglings and get legal wranglings and get their judicial foreclosures their judicial foreclosures their judicial foreclosures their judicial foreclosures their judicial foreclosures their judicial foreclosures their judicial foreclosures their judicial foreclosures their judicial foreclosures their judicial foreclosures off the ground. off the ground. off the ground. off the ground. off the ground. JUDICIOUS PROPERTY JUDICIOUS PROPERTY JUDICIOUS PROPERTY JUDICIOUS PROPERTY JUDICIOUS PROPERTY JUDICIOUS PROPERTY JUDICIOUS PROPERTY JUDICIOUS PROPERTY JUDICIOUS PROPERTY JUDICIOUS PROPERTY MANAGER NEEDED MANAGER NEEDED MANAGER NEEDED MANAGER NEEDED MANAGER NEEDED MANAGER NEEDED MANAGER NEEDED MANAGER NEEDED MANAGER NEEDED Amid budget cuts and Amid budget cuts and Amid budget cuts and Amid budget cuts and Amid budget cuts and Amid budget cuts and Amid budget cuts and Amid budget cuts and Amid budget cuts and promises to eliminate promises to eliminate promises to eliminate promises to eliminate promises to eliminate promises to eliminate promises to eliminate promises to eliminate waste, the government waste, the government waste, the government waste, the government waste, the government waste, the government waste, the government waste, the government is bleeding billions to is bleeding billions to is bleeding billions to is bleeding billions to is bleeding billions to is bleeding billions to is bleeding billions to maintain and secure vacant, maintain and secure vacant, maintain and secure vacant, maintain and secure vacant, maintain and secure vacant, maintain and secure vacant, maintain and secure vacant, maintain and secure vacant, underutilized federally underutilized federally underutilized federally underutilized federally underutilized federally underutilized federally underutilized federally underutilized federally underutilized federally owned properties. owned properties. owned properties. owned properties. owned properties. owned properties. owned properties. default servicing in print and online @ dsnews.com 04 .2013 Where Oh Where Did My REO Go? The once- strong stock of bank-owned homes is dialing down in many markets, and numbers seem programmed for a brusque ebb and fl ow. Cover Story THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com.

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