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REO SATURATION RATE FALLS FOR FIRST TIME IN 2012, CLEAR CAPITAL REPORTS for REOs, increased 1.9 percent on a quarterly basis in August, little changed from the 2 percent quarterly gain in July. Year-over-year, home prices rose 2.9 percent. All four regions saw price gains with the Home prices overall, including sales prices West leading growth, posting a 3.8 percent quarterly increase and 7.7 percent yearly rise. Prices in the Midwest rose for the first time since April 2010 on a yearly basis, edging up 0.5 percent; quarter-over-quarter, prices were up 2 percent in the Midwest region. Prices increased quarterly and yearly in the the REO saturation rate fell for the first time this year in August, according to Clear Capital's Home Data Index, released early last month. The REO saturation rate, which is calculated While home prices remained little changed, as the portion of REO sales relative to total sales, slipped 6.4 percentage points from the previous rolling quarter to 20.5 percent. By Clear Capital's assessment, it's the lowest the REO saturation rate has been since April 2008. At its peak, the REO saturation rate was 40.2 percent in the first quarter of 2009. in the volume of REO sales, fair market sale volumes are increasing, leading to more activity in the owner-occupied sector, Clear Capital explained. According to the company's report, the first phase of the recovery was strengthened by REO-only price trends, but August gains were due largely to strengthening in the fair market segment as investment purchases slowed down. "Sustained growth in the fair market Although the market is seeing a decrease segment could build a foundation for phase two of the recovery," Clear Capital stated. FORECLOSURE-FOCUSED REALITY TV SHOW TO DEBUT IN OCTOBER focused on travel and real estate, says its pilot episode of a new home improvement reality show focused on foreclosure renovation was well-received in a test market in New York. The show, titled Foreclosure 2 Fabulous, It's a short jump from "realty" to "reality." Next 1 Interactive, Inc., a media company million households across the country. The show's website will also feature live streaming episodes. Next 1 Realty, a subsidiary of Next 1 follows host Patrick Colville and his family and friends as they help participants buy, renovate, and refurnish foreclosed vacation properties within a five-day period. The program is designed to show participants and viewers how they can "own and enjoy their own little piece of paradise." The pilot episode was tested in the New York area, aired to a potential viewing audience of 700,000 over two weeks in August. As a result of the airings, Next 1 reports receiving hundreds of inquiries from people wanting to purchase foreclosed properties. The first 13-episode season of Foreclosure 2 Fabulous is set to launch in October to a broadcasting audience of approximately 100 48 Interactive, is the real estate agent of record and will handle all leads for real estate and foreclosure transactions, as well as referrals stemming from the show. Viewers will be able to access video listings of home inventory through a section of Next 1 Realty's website. All video listings will be listed by Realbiz Media, which will promote "Foreclosure 2 Fabulous" properties as well as other homes available for purchase. Bill Kerby, CEO of Next 1 Interactive, said he expects the Foreclosure 2 Fabulous series will motivate viewers to participant in the recovering housing market, especially in the hard-hit states where Colville plans to focus his efforts. "Foreclosure 2 Fabulous provides the entertainment value desired by viewers that can cause the necessary interest in real estate transactions. The possibilities continue to expand as Next 1 Realty advances in exposing video on demand to viewers in unique ways," Kerby said. South by 1.5 percent and 2.5 percent, respectively. The Northeast saw respective quarterly and yearly gains of 0.5 percent and 1.3 percent. Quarter-over-quarter, two metros posted double-digit gains in home prices: Milwaukee (12.5 percent) and Seattle (10.4 percent). Despite having an REO saturation rate of 48.8 percent, Detroit managed to see a 5.9 percent quarterly price gain, but still experienced an annual decline of 1.7 percent. Dayton and Houston were the worst performing metros on a quarterly basis, each seeing price declines of 4.9 percent. STAT INSIGHT 519,339 Loans refinanced under the Home Affordable Refinance Program (HARP) from January to July; compares to 400,024 in all of 2011. Source: Federal Housing Finance Agency