Monday Morning Cup of Coffee takes a look at news coming across the HousingWire weekend desk, with more coverage to come on bigger issues.
Residential property values in the U.S. continued to gain momentum in October, showing signs of an ongoing expansion in national economic activity, according to FNC’s latest residential price index. By comparison, September values showed little change.
Home prices in the U.S. were up for the eight consecutive month in October by 0.4%, leading to a total appreciation rate of 5.1% year to date. On the other hand, foreclosures dropped from 26.7% at the beginning of the year to 17.6% in October.
See the full residential price index by clicking here.
Bank of America CEO Brian Moynihan said the U.S. government, lender and borrowers need to reset their expectations that anybody can become a homeowner.
“We need to look hard at some of the old assumptions and ask the question is homeownership the right solution for everyone?” Moynihan said.
Moynihan believes the rest should include an alteration in the government’s role in housing and an “orderly transition” in the role of Fannie and Freddie. In order to get even the lowest-income families into homes, Moynihan said the FHA needs to return to its original focus on helping low- and moderate-income borrowers.
“FHA has been instrumental in sustaining the market the past few years, but they have come a long way from their original mission,” he said.
Read the full article by Bloomberg by clicking here.
Boston will enforce a program that gives the Natick Housing Authority, provider of low-income housing for state-assisted families and the elderly, nearly $255,000 in order to fix up 28 vacant units. There are 33 agencies taking part in the state-enforced program.
The program will provide $2.2 million in grant money to help local housing agencies fix up vacant units so they can be rented. Vacant units that are eligible for renovations must require repair costing between $2,500 and $25,000 and the grants will be doled out as reimbursements after the work is complete.
The state officials are tightening the rules a bit, however, requiring that tenants be in the refurbished units by March 31 in order for the local agencies to receive reimbursements.
Read more about the newly announced housing program by clicking here.
The Missouri Division of Finance closed Sunrise Beach, MO.-based Community Banks of the Ozarks on Dec. 14. 2012. The Bank of Sullivan acquired all assets and deposits. The Federal Deposit Insurance Corporation was named Receiver.
Community Bank of the Ozarks owns two branches and $42.8 million in total assets and $41.9 million in total deposits as of Sept. 30, the St. Louis Post-Dispatch reported. According to the FDIC, the two branches will operate as branches of Bank of Sullivan beginning Dec. 15.
It is estimated the closure of Community Bank of the Ozarks will cost $10.4 million for the Deposit Insurance Fund.