Monthly Archives: February 2013

Browser plug-in puts neighborhood ‘micro’ data around listings | Armonk NY Real Estate

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A new Internet browser plug-in from CensusConnect Realty allows users to supplement the information they see when surfing listing sites like Realtor.com and Zillow with block-level data mined from U.S. Census Bureau records.

Touted as the first real estate product to display neighborhood data around properties at the “micro” level, the CensusConnect plug-in paints a lucid portrait of a property and its neighborhood for buyers.

“In many cities, neighborhoods can vary wildly within a few blocks, and so ‘block level’ data is critical to providing accurate neighborhood information,” developer CensusConnect Realty said in a statement.

The program also offers a glimpse of how listing portals may themselves be able to utilize micro demographic data now available through the recently debuted Census Bureau APIs.

“We saw nobody with 2010 block-level census” data, said CensusConnect’s creator, Carl Manganillo. “Literally, the block-level data was not available until about six months ago.”

via inman.com

Less than Half of Today’s Mortgages Will Qualify Under New Mortgage Rules | Chappaqua Real Estate

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Two new Treasury Department mortgage regulations designed to reduce lender risk will make it impossible for 60 percent of the mortgages being approved today to be approved in seven years.  The impact will be greater for mortgages used to buy homes rather than refinance and in the states where prices have been most volatile.

The two rules which are being finalized the year, the Qualified Mortgage rule (QM) and the Qualified Residential Mortgage rule (QM), reduce risk for lenders but place new burdens on borrowers.  The QM rule codifies tighter higher underwriting standards that lenders have implemented since 2006 that deny loans to borrowers who cannot demonstrate their ability to repay.  The QRM rule encourages borrowers to make down payments greater than the current average in order to avoid risk retention requirements that amount to significantly higher interest rates.

However, the full impact of the rules won’t be felt for years.  The QM rule finalized last month allows loans that meet GSE and FHA underwriting guidelines-most of the mortgages originated today– to be excluded for up to seven years.  When they do take full effect, the impact will be greatest in Southern and Western states where prices risen and fallen the most.  Jumbo mortgages, which do not conform to GSE guideliens, will feel the effect as early as next year.

An analysis by CoreLogic economist Sam Khater found that only 52 percent of mortgages that conform to GSE and FHA standards will meet the QM rule’s eligibility requirements when the exclusion expires.

“By far the greatest impact is the debt-to-income threshold which removed 24 percent of all originations, said Khater.  “The second largest category is low or no-documentations lending, which removed 16 percent. The remaining QM provisions  only remove 8 percent of loans. ”

via realestateeconomywatch.com

Establishing a Client Relationship | Bedford NY Real Estate

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There are some things you need to know about establishing a relationship with a client. First, the relationship with your client needs to be a dual one; professional and helpful.

Establishing a professional relationship with clients is particularly important since you’re assisting in one of the largest financial and emotional transactions people make.  However, being professional is more difficult than you may think. Your conduct and values are reflected in your professionalism. All client communications need to pass the “professional” test. To this end, you must determine what professional image you want to convey to your clients.

An agent/client relationship differs markedly from an agent/customer relationship. You serve a client for life. You serve a customer for the moment. Clients receive guidance and assistance on all matters relating to real estate whether they’re currently involved in a transaction or not.

By employing a longer-term view of client management, you increase your value during and after the property brokerage function. Aside from an actual transaction, you provide substantive guidance throughout your client’s life cycle. Everything you do with a client should reflect the highest level of professionalism.

For example, the contents of a client newsletter should reflect a client-first real estate agent. Rather than offering dinner recipes or landscaping tips, the newsletter should offer substantive guidance on real estate matters: an article on real estate planning or a report on local property tax initiatives within the clients’ communities. This establishes you as an expert; a trusted advisor. You’re more than just a salesperson brokering a transaction for a fee.

via realestateeconomywatch.com

Stricter rules make mortgages hard to get | South Salem NY Real Estate

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A new set of tighter mortgage rules designed to prevent the kind of lending frenzy that led to the 2007 housing crash are being established, but some worry they could dampen Southwest Florida’s budding housing recovery.

that is because the new rules, aimed at protecting consumers from abusive lending practices, could wind up making it even harder for some borrowers to obtain mortgages.

“Lenders are very careful now. People who should get loans are getting loans, but it is a more difficult process for everyone,” said David Hunihan, director of sales at homebuilder Neal Communities.

“My fear is that the legislation is too far reaching, that people who should get loans won’t be able to, and that’s not good for anyone,” he said.

Borrowers already are facing uphill battles for mortgage loans, a reaction to free-wheeling lending practices that pushed consumers to buy homes they could not afford during the real estate boom of the mid-2000s.

Cash buyers, meanwhile, who have been key players in the revival of the region’s housing market, also are elbowing out those who must borrow money to buy a home, said Lois Seropian, a Realtor with Coldwell Banker on Siesta Key.

“Most of our deals are cash,” she said. “Mortgages are very hard on us. Even though rates are great, you have to have perfect credit.

“When those buyers go up against a cash buyer, the seller will take the cash. A mortgage is going to take six to eight weeks, while with cash you close in 10 days,” she said.

via heraldtribune.com

 

Stricter rules make mortgages hard to get | South Salem NY Real Estate

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A new set of tighter mortgage rules designed to prevent the kind of lending frenzy that led to the 2007 housing crash are being established, but some worry they could dampen Southwest Florida’s budding housing recovery.

that is because the new rules, aimed at protecting consumers from abusive lending practices, could wind up making it even harder for some borrowers to obtain mortgages.

“Lenders are very careful now. People who should get loans are getting loans, but it is a more difficult process for everyone,” said David Hunihan, director of sales at homebuilder Neal Communities.

“My fear is that the legislation is too far reaching, that people who should get loans won’t be able to, and that’s not good for anyone,” he said.

Borrowers already are facing uphill battles for mortgage loans, a reaction to free-wheeling lending practices that pushed consumers to buy homes they could not afford during the real estate boom of the mid-2000s.

Cash buyers, meanwhile, who have been key players in the revival of the region’s housing market, also are elbowing out those who must borrow money to buy a home, said Lois Seropian, a Realtor with Coldwell Banker on Siesta Key.

“Most of our deals are cash,” she said. “Mortgages are very hard on us. Even though rates are great, you have to have perfect credit.

“When those buyers go up against a cash buyer, the seller will take the cash. A mortgage is going to take six to eight weeks, while with cash you close in 10 days,” she said.

via heraldtribune.com

 

Stricter rules make mortgages hard to get | South Salem NY Real Estate

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A new set of tighter mortgage rules designed to prevent the kind of lending frenzy that led to the 2007 housing crash are being established, but some worry they could dampen Southwest Florida’s budding housing recovery.

that is because the new rules, aimed at protecting consumers from abusive lending practices, could wind up making it even harder for some borrowers to obtain mortgages.

“Lenders are very careful now. People who should get loans are getting loans, but it is a more difficult process for everyone,” said David Hunihan, director of sales at homebuilder Neal Communities.

“My fear is that the legislation is too far reaching, that people who should get loans won’t be able to, and that’s not good for anyone,” he said.

Borrowers already are facing uphill battles for mortgage loans, a reaction to free-wheeling lending practices that pushed consumers to buy homes they could not afford during the real estate boom of the mid-2000s.

Cash buyers, meanwhile, who have been key players in the revival of the region’s housing market, also are elbowing out those who must borrow money to buy a home, said Lois Seropian, a Realtor with Coldwell Banker on Siesta Key.

“Most of our deals are cash,” she said. “Mortgages are very hard on us. Even though rates are great, you have to have perfect credit.

“When those buyers go up against a cash buyer, the seller will take the cash. A mortgage is going to take six to eight weeks, while with cash you close in 10 days,” she said.

via heraldtribune.com

 

Obama Considering HARP for Non-Agency Borrowers | Bedford Corners Real Estate

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President Obama is considering announcing a major expansion of the HARP 2.1 refinancing program in his upcoming State of the Union speech that would make it possible for underwater borrowers whose loans are not held by Fannie Mae or Freddie Mac to refinance at today’s low rates.

The Washington Post, citing Treasury Department sources reported this morning that the President is weighing whether to use his executive powers to expand the program to include non-agency loans in the successful refinancing program. Congress refused to approve such an expansion of the program last year.

HARP has helped about 1.8 million homeowners refinance since April 2009. Some 81,600 borrowers used the HARP program to refinance last month alone, according to HUD. Some 11 million homeowners have been unable to refinance under HARP.

The HARP program, which has been modified a number of times since its launch four years ago, is limited by that fact that borrowers’ loans must be held by one of the government sponsored enterprises, Fannie Mae or Freddie Mac. As a result, it has not been able to help millions of homeowners.

“Even with the expanded HARP 2.0 guidelines, we are still finding that 4 out of 10 borrowers we speak with are unable to qualify for a refinance due to participating lender restrictions,” said Brian Maier, a Las Vegas, NV mortgage broker last July.

The plan, if adopted, would likely be aimed at homeowners who have otherwise kept up with their mortgage payments but have been unable to refinance because the loan against their home exceeds its depressed value. Many Republicans in Congress have balked at the idea amid concerns over the cost to taxpayer, according to the Post.

In his State of the Union Speech last year the President proposed an expansion of the HARP program that would provide access to refinancing for all non-GSE borrowers who are current on their payments and meet a set of simple criteria. However, the plan required action by Congress, which failed to materialize.

via realestateeconomywatch.com

 

Most Young Consumers Want to Buy a Home, Survey Finds | Katonah NY Real Estate

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The economic downturn that ended a few years ago may have soured many consumers on making significant financial decisions. But as the effects of the recession fade, many may be more interested in homeownership. That seems particularly true of younger consumers who may not have been in a position to buy years ago.

Today, the vast majority of consumers between the ages of 25 and 44, comprising both millennials and those in Generation X, say that homeownership is at least somewhat important to them, according to a new survey from Prudential Real Estate. In all, 96 percent of all consumers feel this way. But 77 percent of those aged 25 to 34, and 78 percent of people between 35 and 44, say it’s “very important.” Further, 74 percent say that the current levels of affordability lent by historically low interest rates mean that now is a great time for them to buy a home.

via realestate.aol.com

 

Yellen: Housing stakes a minor role in post-recession recovery | Bedford Hills Real Estate

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Economic recoveries are generally lifted by new housing consumption, but the post-2008 recession failed to gain significant tailwinds from housing, Federal Reserve Vice Chairman Janet Yellen said Monday.

In fact, housing overall became much less of a stimulus in the years following the subprime-market bust, the vice chair concluded when speaking at the “A Trans-Atlantic Agenda for Share Prosperity” conference in Washington D.C.

“After a lengthy recession that imposed great hardships on American workers, the weak recovery has made the past five years the toughest that many of today’s workers have ever experienced,” Yellen added.

An important tailwind in most recoveries is housing because residential investment creates jobs in construction as well as related industries, Yellen said. 

Before the Great Recession, housing investment added a half of a percentage point on average to real Gross Domestic Product (GDP) growth in the two years after each of the previous four recessions. This was considerably more than its contribution to growth at other times, the vice chairman noted.

“During this recovery, in contrast, residential investment, on net, has contributed very little to growth since the recession ended,” Yellen stated. “The reasons are easy to understand, given the central role that housing played in the Great Recession.” 

An extended boom in construction was driven in large part by overly loose mortgage lending standards as well as unrealistic expectations of future home price increases, leading to a housing market collapse complete with plunging home sales and housing prices as well as a sharp credit contraction, according to Yellen.

Thus, tight mortgage credit conditions are still making it difficult for potential homebuyers, despite record-low mortgage interest rates, creating housing affordability.

“I’m encouraged by recent improvement in the residential sector, but the contribution of housing investment to overall economic activity remains considerably below the average seen in past recoveries,” Yellen said.

Click on the graph to view the average contribution of residential investment to real GDP growth during past recoveries.

via housingwire.com