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Date

Dec

3
2007

Rate freeze? Sure -- one loan at a time

By Matt Carter, Monday, December 3, 2007.
It looks like the Bush administration's call for lenders to voluntarily begin wholesale modifications of ARM loans -- freezing rates on many loans with looming resets -- isn't being embraced by Wall Street investors. Many appear to be wedded to...  more...

Builder's retreat sparks land grab

By Glenn Roberts, Jr., Monday, December 3, 2007.
Builder Lennar Corp., which reported a $513.9 million loss in the third quarter compared with net earnings of $206.7 million in third-quarter 2006, has sold about 11,000 home sites for $525 million that had been valued at $1.3 billion as...  more...

Kick 'em when they're down

By Matt Carter, Monday, December 3, 2007.
Unions representing hotel and textile workers have created a Web site advocating a boycott of Countrywide Financial Corp.'s banks and financial institutions. Countrywide's not doing enough to help out troubled borrowers, the unions claim, so consumers shouldn't let the lender...  more...

Real estates stocks post mixed results Premium Content

By Marcie Geffner, Monday, December 3, 2007.

Contrarians and bargain-hunters boosted the fortunes of three of the 10 real estate companies that comprise the hypothetical Inman Index in November.

At the top of the chart was First American Financial, which opened Nov. 1 at $30.11 and closed Nov. 30 at $34.18, a gain of $4.07 per share, or 13.5 percent. Fidelity National Financial, meanwhile, rose from $15.09 to $15.62, a gain of 53 cents per share, or 3.5 percent, and home builder D.R.  more...

Price declines will determine extent of subprime crisis Premium Content

By Inman News, Monday, December 3, 2007.

The foreclosure crisis will "get worse before it gets better," but just how bad depends on how far house prices fall, the president of the Federal Reserve Bank of Boston said today.

In a speech based on a new study of subprime lending in Massachusetts, Boston Fed chief Eric Rosengren encouraged lenders to extend the loan terms of qualified borrowers facing interest rate resets or help them refinance into fixed-rate loans.  more...

Interest rate freeze not a done deal Premium Content

By Matt Carter, Monday, December 3, 2007.

The Bush administration's latest plan to prevent foreclosures -- persuading lenders to freeze the introductory interest rates on some adjustable-rate mortgages -- remains a work in progress, as disagreements remain over who will be eligible for streamlined loan modifications and refinancings, Treasury Secretary Henry Paulson said today.

The plan envisions members of an administration-backed HOPE NOW coalition -- including mortgage servicers, counselors and investors -- will work together to contact borrowers facing interest rate resets, and provide relief for many who are facing fore  more...

Downtown Manhattan office buildings to fetch $1.6 billion

By Inman News, Monday, December 3, 2007.

SL Green Realty Corp. has entered an agreement to acquire two downtown Manhattan office buildings for approximately $1.6 billion, or $598 per square foot, the company announced today.

The buildings, which are adjacent and total more than 2.6 million square feet, will be occupied by a financial services tenant under the terms of a 13-year triple-net lease that provides for annual rental increases.  more...

Charter REIT buys shopping center

By Inman News, Monday, December 3, 2007.

Charter Real Estate Investment Trust has completed the purchase of a shopping center in Montreal in a deal valued at $14.2 million, the company said today.

The two-story, 115,758-square-foot mixed-use retail property is located at 16-180 Anjou Blvd.  more...

REIT snags Florida industry building

By Inman News, Monday, December 3, 2007.

Monmouth Real Estate Investment Corp., a publicly owned real estate investment trust, has acquired an industrial building in Brevard County, Cocoa, Fla., in a deal valued at $10.45 million.

The 89,101-square-foot building is located at 3155 Grissom Parkway.

The property is net-leased to FedEx Ground Package System through July 31, 2017.

The seller, Regional Development Group, constructed the building in 2006.  more...

Home construction spending falls for 20th straight month

By Inman News, Monday, December 3, 2007.

The rate of U.S. residential construction spending hit its lowest level in four years and fell for the 20th consecutive month in October, the U.S.  more...

Overnight real estate rates in 5-day decline

By Inman News, Monday, December 3, 2007.

Long-term mortgage interest rates fell for the fifth night Friday, and the benchmark 10-year Treasury bond yield inched up to 3.95 percent.

The 30-year fixed-rate average sank to 5.69 percent, and the 15-year fixed rate dipped to 5.27 percent. The 1-year adjustable slipped to 5.47 percent.

The 30-year Treasury bond yield was up at 4.39 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...

Pay off second loan or invest cash elsewhere?

By Benny Kass, Monday, December 3, 2007.

DEAR BENNY: I am considering paying off the second loan for my daughter on her house. Are there any tax consequences for either of us? --Anita

DEAR ANITA: Currently, under federal law, you have the right to gift your daughter (or anyone for that matter) up to $12,000 annually without filing a gift tax return or paying tax. If your daughter is married, you can also gift up to $12,000 to your son-in-law. And if you are married, you and your husband can each give up to $12,000 to the daughter and son-in-law for a total of $48,000 gift tax-free.  more...

Risks of trading up to larger home

By Dian Hymer, Monday, December 3, 2007.

Few homeowners cheer when home prices soften, but a soft market can actually benefit homeowners who have been waiting for a prime time to move up to a larger home or to a more expensive home in a better neighborhood.

Let's say home prices declined 10 percent in your area during the past year. This decline affected all price ranges equally. So, if you owned a house that was worth $600,000 last year, it would be worth only $540,000 today.  more...

Payments to brokers don't always involve 'steering'

By Jack Guttentag, Monday, December 3, 2007.

(This is Part 1 of a two-part series.)

The Mortgage Reform and Anti-Predatory Lending Act of 2007 (HR 3915) is now winding its way through Congress. According to the bill's sponsor, Rep. Barney Frank, D-Mass, one of its important objectives is to prevent mortgage brokers from steering borrowers into higher-cost loans.  more...