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Nov

19
2007

Creative destruction

By Matt Carter, Monday, November 19, 2007.
I'm guessing nobody who ever signed onto a risky neg-am mortgage loan ever imagined that they might someday help "trigger an internal recession in China," motivate Congress to "get serious about the coming Social Security/Medicare disaster" or "stop the privatiziation of our federal government to no-bid contractors and high-priced mercenary armies fighting our wars."  more...

Fannie, Freddie and Angelo

By Matt Carter, Monday, November 19, 2007.
What do investors' worries about the government-chartered -- but for-profit companies -- mean for housing markets? Well, Fannie and Freddie have practically been the only game in town of late for mortgage lenders like Countrywide Financial Corp., who are largely unable to make loans that aren't elligible for repurchase or guarantee by Fannie and Freddie. "Private-label" securitization of mortgage loans for sale to Wall Street investors -- the source of the easy money that fueled the housing boom -- has largely evaporated.  more...

Michigan mall sells to developer

By Inman News, Monday, November 19, 2007.

Urban Retail Properties LLC today announced its acquisition of Oakland Mall, a shopping center located in Troy, Mich.

Neither the seller's identity nor the purchase price was disclosed.

Comprising more than 1.5 million square feet, Oakland Mall is home to Macy's, JCPenney and Sears, and more than 125 specialty stores, including Bath & Body Works, Victoria's Secret, Borders Books and Music, and Steve and Barry's.  more...

Cole Cos. expands in America's Heartland

By Inman News, Monday, November 19, 2007.

Cole Companies today announced it recently acquired nine properties within the retail real estate sector, totaling 346,849 square feet for a total purchase price of $65.8 million.

The portfolio includes:

Additionally, Cole is scheduled to acquire 13 properties for a total of $98 million in the month of November, according to a press statement.

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KBS REIT buys 6-building flex portfolio

By Inman News, Monday, November 19, 2007.

KBS Real Estate Investment Trust today announced it has acquired the six-building Nashville Flex Portfolio in Nashville, Tenn., for $53.5 million.

The portfolio, sold by an affiliate of first Industrial Realty Trust, comprises 551,184 square feet of flex industrial and office space built between 1986 and 2001. Three of the properties are located in the Metro Center submarket, and the remaining properties are located in the Elm Hill Pike/I-40 East submarket.  more...

Economist: Odds rise for economic recession

By Glenn Roberts Jr., Monday, November 19, 2007.

SAN FRANCISCO -- There is a 45 percent chance that the U.S.  more...

Home builder incentives 'having limited success'

By Inman News, Monday, November 19, 2007.

Builder confidence in the market for new single-family homes remained at a 22-year low in November as buyers either aren't able to get financing or a holding out for lower prices, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today.  more...

Home prices rise in 33 states since Sept. 2006

By Inman News, Monday, November 19, 2007.

Home prices fell in 17 states during the last year, but most states "continue to have stable home values," and a half dozen others even showed moderate price growth, according to a new analysis of repeat sales by First American LoanPerformance.

Home prices in five states -- Wyoming, Utah, North Carolina, Alabama and Maine -- grew at between 5 percent and 10 percent between September 2006 and September 2007, LoanPerformance reported, and at more than 10 percent in Hawaii.  more...

Mixed night for real estate rates

By Inman News, Monday, November 19, 2007.

Movement in long-term mortgage interest rates varied Friday, and the benchmark 10-year Treasury bond yield rose to 4.17 percent.

The 30-year fixed-rate average held at 5.91 percent, and the 15-year fixed rate slipped to 5.47 percent. The 1-year adjustable sank to 5.45 percent.

The 30-year Treasury bond yield gained to 4.54 percent.

Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states.  more...

First American pays $5 million to settle Florida kickback charges Premium Content

By Matt Carter, Monday, November 19, 2007.

First American Title Insurance Co. has agreed to pay a $5 million fine and sever ties to 87 limited partnership title agencies in Florida to settle allegations the company paid kickbacks to builders, bankers, real estate agents and brokers in exchange for business referrals.

Florida regulators and the U.S. Department of Housing and Urban Development accused First American of creating sham affiliated businesses that it owned jointly with companies that could refer home buyers in need of title insurance.  more...

NAR approves voluntary restrictions on use of 'MLS' term Premium Content

By Glenn Roberts Jr., Monday, November 19, 2007.

LAS VEGAS -- The National Association of Realtors board of directors on Friday approved a provision that allows Realtor-affiliated multiple listing services to ban members' use of the terms "MLS" and "Multiple Listing Service" in Web site addresses, company names, e-mail addresses and in other marketing materials.

A small group of MLSs has already passed such measures, and a policy adopted by the Regional MLS in Minnesota led to an antitrust lawsuit filed by several MLS members.  more...

Analyzing CMG's early-mortgage-payoff program

By Jack Guttentag, Monday, November 19, 2007.

Two years ago I wrote a fairly critical piece about CMG Financial's Home Ownership Accelerator (HOA) loan program that did not do it justice. HOA is fairly complicated and this time I took a harder look.

HOA is a permanent mortgage that has some features found only in a demand deposit account at a bank and other features similar to those in a home equity line of credit (HELOC), except better.  more...

Presale inspections can speed home sale

By Dian Hymer, Monday, November 19, 2007.

Negotiating a purchase agreement is just one step among many in the home-sale process. Before the transaction closes, buyers usually have the property inspected to check for defects. If inspection issues crop up, the contract can be subject to renegotiation, which can derail the transaction altogether.  more...

When can my rental become my dream home?

By Benny Kass, Monday, November 19, 2007.

DEAR BENNY: In a recent column, I read that 1031 property transfers had to be held for a period of one to two years to establish "intent." I thought that a law was passed in October 2004 that stated the "intent" period was five years. I bought a 1031 property in California in 2005 and would appreciate this being clarified. Thank you for column! --Nancy M.

DEAR NANCY: The column was correct and so are you -- but you both are referring to different aspects of a 1031 (often called a "Starker") exchange.  more...