Will September’s Weak Jobs Report Slow Down Housing Growth?

Posted October 5, 2015 by The FHA Condos Approval Co.
Categories: FHA Condominium Approval

This is an interesting article but please note. The federal government would like you to believe that the unemployment rate for the nation is 5.1%. while the usually unmentioned U6, or true, unemployment rate is 10%. For information the U6 rate, as defined by the bureau of Labor Statistics, is:

“Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force.” and “Persons marginally attached to the labor force are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not currently looking for work. Persons employed part time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule. Updated population controls are introduced annually with the release of January data.”

This means people who are not currently looking for work (discouraged workers) and people that have had their hours reduced to part time are counted in U6 and not normally reported unemployment rate.. Just one of the little games both parties play to misinform the public.

For a more detailed look at this subject – please read the article below.

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The lower-than-expected labor market gains for September brought the average monthly job growth for the year down below 200,000, which could possibly slow down the heretofore robust activity for the housing industry so far in 2015.

While the national unemployment rate held steady at 5.1 percent from August (the U6 unemployment rate, the broadest measure of unemployment, fell 3 basis points to 10 percent), September saw a gain of just 142,000 jobs, bringing the average monthly total for the first nine months of 2015 down to 198,000, according to the September  2015 Employment Summary released by the Bureau of Labor Statistics (BLS) on Friday. By comparison, average monthly job gains for the first nine months of 2014 totaled 260,000.

“We had been seeing a level of job creation closer to 3 million on a trailing 12-month basis on average for the last year, but the revisions and the relatively weak September number change that trailing 12-month trend to 2.8 million,” said Jonathan Smoke, chief economist for Realtor.com. “Job creation is a very important leading indicator of strong demand for housing. The strong employment results for the last two years created an uptick in household formation, which drives demand for home purchases and rentals. If this softening sticks, we could see less robust growth in the year ahead.”

To read the complete article – please use the link below.

Weak Jobs Report

Repeat Foreclosures Are Driving Uptick in Foreclosure Starts

Posted October 5, 2015 by The FHA Condos Approval Co.
Categories: FHA Condominium Approval

foreclosure-sign-300x198

Really bad news for some homeowners is fairly good news for the housing industry.

For a more detailed look at this subject – please read the article below.

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Amid all the good news for housing lately, foreclosure starts were up by 7 percent in August—driven by a rise in the amount of repeat foreclosures, according to the August 2015 Mortgage Monitor released by Black Knight Financial Services on Monday.

Repeat foreclosures accounted for 57 percent of the 80,500 foreclosure starts reported in August, the largest share of repeat foreclosures for one month on record, according to Black Knight. While all foreclosure starts saw an increase of 7 percent month-over-month in August, the number of repeat foreclosures jumped by 13 percent.

Coinciding with the substantial increase in repeat foreclosure starts in August was an nearly equally substantial decline in the number of first time foreclosure starts. According to Black Knight, first time foreclosure starts totaled 35,000 in August, their second-lowest total for one month since the crisis began (only April 2015 was lower).

“The high incidence of repeat foreclosures is actually a testament to the lengths servicers have been going in terms of actively working with high delinquency loans and trying to find the best path to pursue with these borrowers,” said Ben Graboske, Chief Technology Officer for the Data and Analytics Division at Black Knight. “When this happens, loans move out of active foreclosure and back into 90+ days delinquent status, presumably to pursue loss mitigation efforts. If and/or when those fail, the loan is shifted back to foreclosure.”

To read the complete article – please use the link below.

Repeat Foreclosures

Driven By Increasing Equity Trend, Total Value of Mortgage Market Hits $22 Trillion

Posted September 28, 2015 by The FHA Condos Approval Co.
Categories: FHA Condominium Approval

UI-Graph

This seems like this is good news for the housing. The only drawback is that it can also indicate that another unsupportable “Housing Bubble” is forming.

For a more detailed look at this subject – please read the article below.

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Driven by a trend of increasing household equity, the total value of the residential housing market nationwide rose to $22.7 trillion as of the end of Q2 2015, according to the Urban Institute’s Housing Finance at a Glance report for September 2015 released Friday.

Household equity has increased each quarter for the last two years, including a 3.4 percent jump in Q2 up to $12.76 trillion, according to the report. Total debt and mortgages also ticked up slightly in Q2 to $9.90 trillion; combined with household equity, those two categories make up the $22.7 trillion mortgage market.

The findings of the Urban Institute on homes regaining equity were in line with CoreLogic’s household Homeowner Equity report for Q2 2015 released in mid-September. Corelogic found that more than three-quarters of a million residential properties regained equity in Q2, bringing the nationwide total of mortgaged residential properties with equity up to 45.9 million (91 percent). Meanwhile, the number of residential properties with negative equity declined to about 8.7 percent, or 4.4 million properties (a drop of about 1 million from a year earlier).

CoreLogic found that nearly one-third of the country’s negative equity (31.7 percent) as of the end of Q2 was concentrated in five states (Nevada, Florida, Arizona, Rhode Island, and Illinois). The continued decline in homes with negative equity prompted CoreLogic president and CEO Anand Nallathambi to declare that “the negative equity epidemic is lifting” for much of the country.

To read the complete article – please use the link below.

Mortgage Market Hits $22 Trillion

Delinquency Rate Experiences Largest Year-Over-Year Decline in Four Years

Posted September 25, 2015 by The FHA Condos Approval Co.
Categories: FHA Condominium Approval

delinquent-logo

It seems like this is good news for the housing industry.

For a more detailed look at this subject – please read the article below.

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Despite seeing a slight month-over-month increase, the national delinquency rate on residential single-family homes experienced its largest decline in nearly four years, according to Black Knight Financial Services’ “First Look” at Mortgage Data for August 2015 released Friday.

The delinquency rate, which includes residential homes that are 30 days or more overdue on mortgage payments but not in foreclosure, tumbled by 18 percent year-over-year in August down to 4.83 percent, the largest over-the-year decline since May 2011, according to Black Knight. This occurred despite a 2.5 percent uptick over-the-month in the delinquency rate for August 2015.

That 4.83 percent of properties in delinquency calculates to about 2.45 million mortgages nationwide, and the over-the-year decline represents about 548,000 properties. Non-current inventory, which includes all properties with loans 30 days or more overdue or in foreclosure, was down by 766,000 year-over-year in August, down to 3.14 million properties. All 50 states saw improvements in their non-current inventory over the previous six months, led by Florida with 18 percent. Wyoming, which already had one of the nation’s lowest non-current inventory rate, saw a 0.7 percent improvement, according to Black Knight.

9-24-BK-Graph

To read the complete article – please use the link below.

Delinquency Rate

House Committee Finds That Americans Are Less Free as a Result of Dodd-Frank

Posted September 21, 2015 by The FHA Condos Approval Co.
Categories: FHA Condominium Approval

Senate-300x198

Dodd-Frank seems to be a classic example of the direction that our governing bodies are headed regarding over controlling the citizens freedom of choice. The assumption that the public is not capable of think for themselves is prevalent among or elected officials and their laws and regulations seem to be growing. The ability to make choices, as to how we run our lives, is a basic freedom of our country even if those choices turn out to be poor ones.

For a more detailed look at this subject – please read the article below.

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On the 228th birthday of the U.S. Constitution on September 17, the House Financial Services Committee posed the question as to whether or not the Dodd-Frank Wall Street Reform Act of 2010 has provided the country with more or less freedom.

The hearing, titled “The Dodd-Frank Act Five Years Later: Are We More Free?” was the third in a series of hearings examining the impact of the controversial legislation on the prosperity, freedom, and financial stability of American consumers. The consensus of the Committee during the hearing was that Dodd-Frank has made Americans less free financially, having the opposite effect of what was intended.

“Dodd-Frank erodes the economic freedom and opportunity that empowers low income Americans to rise and generate greater shared prosperity,” Committee Chairman Jeb Hensarling (R-Texas) said. “Dodd-Frank moves us away from the equal protection offered by the impartial rule of law towards the unequal and victimizing rule of political bureaucrats. Of all the harm Dodd-Frank inflicts, this is the most profound and disturbing.”

Hensarling went on to say that Dodd-Frank exemplifies the “insidious belief” among those in Washington that the American people cannot be trusted to make financial decisions, so Washington must do it for them; and “Without Washington’s coercive mandates, we just might pick the wrong health plan, the wrong mortgage, the wrong financial advisor, maybe even—God forbid—the wrong lightbulb!”

According to a press release from the committee, three key takeaways from the hearing are:

  1. Dodd-Frank has led to a less dynamic economy and a command and control system where regulators dictate credit offerings; as a result, the freedom and individual choices of consumers are sacrificed
  1. Dodd-Frank has given government regulators power to not just make credit products less available and more expensive, but to take them away
  2. Dodd-Frank’s “torrent of top-down regulations” has adversely affected small businesses, which in turn prevents opportunities to grow the economy and create jobs. The ones hurt the most by this are lower- and middle-income Americans. The costly rules imposed by Dodd-Frank have resulted in the weakest economic recovery post-World War II.

To read the complete article – please use the link below.

Americans Are Less Free as a Result of Dodd-Frank

A Bill to Cap Fannie Mae and Freddie Mac CEOs’ Pay Passes in U.S. Senate

Posted September 19, 2015 by The FHA Condos Approval Co.
Categories: FHA Condominium Approval

DSN-freddiefannie-300x159

This is a good move on both Senate and will be a super move by the House but this whole fiasco brings to light a grievous error in the appointing of Mel Watt as the director of FHFA. He authorize a $4,000,000.00 a year raise for the 2 heads of Fannie Mae and Freddie Mac funded by taxpayer money.

This shows how far out of touch with reality Watt really is. In fact Watt stated that if their pay was raised to $7,000.000.00 a year he would have no problem with it in fact he would recommend it. This shows Watt is not qualified to run FHFA and should be replaced now.

For a more detailed look at this subject – please read the article below.

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A proposed bi-partisan bill to cap the salaries of the CEOs at both Fannie Mae and Freddie Mac passed in the U.S. Senate by a unanimous vote on Wednesday.

S.236, known as the Equity in Government Compensation Act of 2015, was co-sponsored Sen. David Vitter (R-Louisiana) and Sen. Elizabeth Warren (D-Massachusetts). The bill was modeled after a similar bill in the House, H.R. 2243, also called the Equity in Government Compensation Act of 2015, introduced by Rep. Ed Royce (R-California) earlier this year. Royce’s bill passed in the House Financial Services Committee by a vote of 57-1 on July 29.

“Giving massive taxpayer-funded pay raises to Fannie Mae and Freddie Mac isn’t just out of touch – it’s downright offensive,” Vitter said. “These two companies are wards of the state. They exist in the current form only because folks across the country paid to bail out the mortgage giants during the financial crisis. In fact, they’d still be on the hook if Fannie Mae and Freddie Mac incurred further losses,” Vitter said. “Congressman Royce’s hard work in the House built momentum to pass this important bill, and with last night’s vote, the Senate has unanimously agreed that capping these pay raises is the common-sense, responsible course of action.”

To read the complete article – please use the link below.

CEOs’ Pay 

Negative Equity Rate Decline in Q2 Fueled by Appreciation in Least Valuable Homes

Posted September 6, 2015 by The FHA Condos Approval Co.
Categories: FHA Condominium Approval

underwater-five

This seems like this is good news for the housing industry as before a true recovery can get started the bottom 1/3 priced homes need to be included. The only drawback is that it can also indicate that another unsupportable “Housing Bubble” is forming. As always time will tell.

For a more detailed look at this subject – please read the article below.

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The negative equity rate on U.S. single-family homes fell below 15 percent during Q2, totaling approximately 7.4 million homes at the end of the quarter—slightly less than half the total of upside down homes at the worst of the crisis, according to the Zillow Q2 2015 Negative Equity report released Thursday.

A lingering effect of the financial crisis nearly seven years later, the number of borrowers who owe more than their homes are worth in the United States totaled 15 million at their peak. That number has been reduced to slightly below half by many factors, including foreclosures, short sales, and rapidly rising home values.

In the first half of 2015, strong appreciation for the least valuable third of homes (which are more likely to be underwater than more valuable homes) fueled the continued decline of the nation’s overall negative equity rate, according to Zillow.

“If the overall negative equity rate is going to continue to fall, it will need to keep being driven down by improving health at the bottom end of the market,” Zillow Chief Economist Dr. Svenja Gudell said. “The least valuable homes really bore the brunt of negative equity during the recession, and that’s where most negative equity remains concentrated today. As more first-time buyers enter the market seeking these less expensive homes, home value growth at the bottom end could continue to outpace growth overall, which will be good news for millions of underwater homeowners in these homes.”

To read the complete article – please use the link below.

NEGATIVE EQUITY RATE, UNDERWATER BORROWERS, ZILLOW