This is amazing...
All Rates But 1-Year ARM Hit Record Lows In Freddie Mac Weekly Survey
For Immediate Release
June 24, 2010
Contact: corprel@freddiemac.com
or (703) 903-3933
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.69 percent with an average 0.7 point for the week ending June 24, 2010, down from last week when it averaged 4.75 percent. Last year at this time, the 30-year FRM averaged 5.42 percent.
The 15-year FRM this week averaged 4.13 percent with an average 0.6 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 4.87 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.84 percent this week, with an average 0.7 point, down from last week when it averaged 3.89 percent. A year ago, the 5-year ARM averaged 4.99 percent.
The 1-year Treasury-indexed ARM averaged 3.77 percent this week with an average 0.7 point, down from last week when it averaged 3.82 percent. At this time last year, the 1-year ARM averaged 4.93 percent. This is the lowest the 1-year ARM has been since the week ending May 6, 2004 when it averaged 3.76 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Freddie Mac began collecting rates for 30-year fixed loans in April 1971, 15-year fixed mortgages in September 1991 and 5-year hybrid ARMs in January 2005. The record low for traditional 1-year ARMs of 3.36 percent occurred during the week of March 25, 2004.
“Both new and existing home sales showed unexpected declines in May. Existing sales fell 2.2 percent, compared to the market consensus forecast of a 6.0 percent gain, based on figures published by the National Association of Realtors® . Sales of new homes fell 32.7 percent to an annualized rate of 300,000 units, which was the largest monthly drop and slowest pace since records began in 1963, according to the Census Bureau .”
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
http://www.freddiemac.com/pmms/release.html?week=25&year=2010
Tuesday, June 29, 2010
Tuesday, June 22, 2010
MAY Tampa Bay real estate stats
Stats were strong, as anticipated. The fly in the ointment is the staggering dropoff of Pending Sales, which would most likely sell in June. New home sales are again at a record low, which eventually forces the sales of existing homes.
There has been talk of extending the tac credit CLOSING deadline to September, but nothing substantial that I have seen as of yet that would indicate this is a reality. There will be alot of buyers who will miss the deadline and subsequently the tax credit money.
Stats were strong, as anticipated. The fly in the ointment is the staggering dropoff of Pending Sales, which would most likely sell in June. New home sales are again at a record low, which eventually forces the sales of existing homes.
There has been talk of extending the tac credit CLOSING deadline to September, but nothing substantial that I have seen as of yet that would indicate this is a reality. There will be alot of buyers who will miss the deadline and subsequently the tax credit money.
Tuesday, June 15, 2010
I received the following anecdote from a great realtor in Orlando, FL, - Albert Stimer.
"With short sales on the rise, mortgage fraud scams involving these transactions may be following the same trend.
In fact, two former Connecticut real estate agents, Sergio Natera and Anna McElaney, recently pled guilty to bank fraud stemming from their involvement in a short sale mortgage fraud scheme. According to court documents, Natera and McElaney worked together to defraud various banks, including Regions Bank, Wells Fargo, and other financial institutions by means of “materially false and fraudulent pretenses, representations, and promises.”
In the case of Regions Bank, Natera and McElaney deceived the bank into agreeing to a short sale on a property for which it held two mortgages on. McElaney, who was the listing agent for the property, received an offer to purchase the property for a price of $132,500. However, she and Natera subsequently directed communications to Regions Bank that the highest offer to purchase the property was for $102,375 by BOS Asset Management, LLC, an entity Natera controlled.
The bank agreed to the short sale of the property for the lower price and released its mortgages on the property. Shortly thereafter, Natera, through BOS Asset Management, sold the property for $132,500 to the initial bidder. He and McElaney then retained the difference in the two sale prices. Natera and McElaney used this scheme in various other short sale transactions and have been charged with bank fraud, conspiracy to commit bank fraud, and aiding and abetting. They both await sentencing in August.
The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) warned of the potential risk of short sale fraud in its recent quarterly report to Congress. In the report, SIGTARP said revisions to the Home Affordable Foreclosure Alternatives (HAFA) program under the Home Affordable Modification Program (HAMP) present an increased prospect of potential fraud.
As part of the new initiatives, Treasury announced that additional incentive payments will be paid to borrowers and servicers who participate in short sale provisions. This also increases the incentives for those participating in criminal short sale scams, and it appears that the program may lack necessary antifraud protections, SIGTARP said.
The report cited “flopping” – which is exactly what Natera and McElaney have been accused of – as one prevalent short sale scheme. SIGTARP explained that this scam centers on home values that are fraudulently deflated for the purpose of decreasing the cost of the short sale to a “straw purchaser.” The property is then quickly resold for its true market value, leaving the difference in the “crook’s pocket,” the report said.
SIGTARP said the HAFA program permits home valuation, the key vulnerability point for a flopping scheme, without a true appraisal, allowing estimates from brokers or other “independent” provider at the discretion of the servicer, subject to its contractual agreement with the investor.
To combat this risk, SIGTARP recommended that Treasury adopt a uniform appraisal process across all HAMP and HAMP-related short sale programs consistent with the Federal Housing Administration’s procedures."
Albert Stimer
Lic. Real Estate Broker
Lic. Mortgage Broker
Short Sale Specialist.
Towns Realty
"With short sales on the rise, mortgage fraud scams involving these transactions may be following the same trend.
In fact, two former Connecticut real estate agents, Sergio Natera and Anna McElaney, recently pled guilty to bank fraud stemming from their involvement in a short sale mortgage fraud scheme. According to court documents, Natera and McElaney worked together to defraud various banks, including Regions Bank, Wells Fargo, and other financial institutions by means of “materially false and fraudulent pretenses, representations, and promises.”
In the case of Regions Bank, Natera and McElaney deceived the bank into agreeing to a short sale on a property for which it held two mortgages on. McElaney, who was the listing agent for the property, received an offer to purchase the property for a price of $132,500. However, she and Natera subsequently directed communications to Regions Bank that the highest offer to purchase the property was for $102,375 by BOS Asset Management, LLC, an entity Natera controlled.
The bank agreed to the short sale of the property for the lower price and released its mortgages on the property. Shortly thereafter, Natera, through BOS Asset Management, sold the property for $132,500 to the initial bidder. He and McElaney then retained the difference in the two sale prices. Natera and McElaney used this scheme in various other short sale transactions and have been charged with bank fraud, conspiracy to commit bank fraud, and aiding and abetting. They both await sentencing in August.
The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) warned of the potential risk of short sale fraud in its recent quarterly report to Congress. In the report, SIGTARP said revisions to the Home Affordable Foreclosure Alternatives (HAFA) program under the Home Affordable Modification Program (HAMP) present an increased prospect of potential fraud.
As part of the new initiatives, Treasury announced that additional incentive payments will be paid to borrowers and servicers who participate in short sale provisions. This also increases the incentives for those participating in criminal short sale scams, and it appears that the program may lack necessary antifraud protections, SIGTARP said.
The report cited “flopping” – which is exactly what Natera and McElaney have been accused of – as one prevalent short sale scheme. SIGTARP explained that this scam centers on home values that are fraudulently deflated for the purpose of decreasing the cost of the short sale to a “straw purchaser.” The property is then quickly resold for its true market value, leaving the difference in the “crook’s pocket,” the report said.
SIGTARP said the HAFA program permits home valuation, the key vulnerability point for a flopping scheme, without a true appraisal, allowing estimates from brokers or other “independent” provider at the discretion of the servicer, subject to its contractual agreement with the investor.
To combat this risk, SIGTARP recommended that Treasury adopt a uniform appraisal process across all HAMP and HAMP-related short sale programs consistent with the Federal Housing Administration’s procedures."
Albert Stimer
Lic. Real Estate Broker
Lic. Mortgage Broker
Short Sale Specialist.
Towns Realty
Wednesday, June 02, 2010
Dear Appraiser, My Seller is not your enemy….
AN OPEN LETTER TO THE 2 APPRAISERS WHO SHOULD HAVE THEIR LICENSE REVOKED
First, I want to say to all the competent and professional appraisers I have had the pleasure of meeting and chatting with: You are a complement to your profession and we, as realtors, appreciate the hard work you put into your occupation.
Now, to the 2 appraisers who sent in mistake-riddled appraisals on a recent deal and NEARLY prevented my seller from selling, SHAME ON YOU! It’s not about you, it’s not about me, or the other realtor, or the mortgage co, etc. It’s about the Seller and the Buyer. Period. Their dreams, their goals, their aspirations…and yet you trample them without a moment’s thought (or so your appraisal made it seem).
I know you have taken a lot of heat over the market taking a dive. But that’s water under the bridge. It’s up to us to bring this market back and that’s only going to happen when good buyers and good sellers can complete a transaction.
When we met at the property, I brought both of you a brief synopsis of comparable properties and a quick opinion of value. Obviously, I knew (and expected) you would both do your own research but thought you would come close to my opinion. What happened??? Having lived in the neighborhood for 6 years and sold numerous homes in here, I am well aware of current values. In fact, 4 of the 6 comps you used in your appraisal were MY LISTINGS, yet you never called me for additional details on the homes. Ultimately, you made quite a few mistakes on the appraisal that required me to write a written appeal asking for corrections – but it was too late at that point.
Putting your incompetence aside, you wouldn't know that my seller lost his wife of 30 years about 18 months ago. He is battling cancer himself and his house was just too big and filled with too many memories of his soul mate. Not that you knew (but maybe deduced from public records), he was also bringing $50,000+ to the closing table to get the deal done. Ultimately, the home appraised as it should have – on the THIRD APPRAISAL - after 2 wildly inaccurate appraisals blew apart 2 different contracts. When you fail to complete your due diligence and sign off on that error-riddled appraisal, you are affecting people’s lives immeasureably.
If you are from across the Bay and unfamiliar with our area, why wouldn’t you take assistance from a “neighborhood expert”? Your terse response to my comps, “I’m not allowed to speak with you” is not quite accurate. Other appraisers have told me the law does allow you to consult with experts in the area to arrive at a reasonable fair market value. Just because a bank orders the appraisal from you doesn’t mean you automatically know our area…
In the end, it all worked out. The Buyer and Seller closed the deal for quite a bit more than your appraisals came in at. When you’re doing future appraisals, please consider speaking with the listing agent and enlisting their knowledge to help you accurately produce an appraisal. If you aren’t sure of a home’s features or have questions about the comps, PLEASE ASK…we are on your team and will get you whatever information you need.
To those 2 appraisers (I use that label loosely), please re-assign the appraisal if you see me listed as contact for the appraisal. I don’t want to work with you in the future. I want to work with professionals who show a willingness to understand our market and will complete an accurate appraisal of fair market value.
AN OPEN LETTER TO THE 2 APPRAISERS WHO SHOULD HAVE THEIR LICENSE REVOKED
First, I want to say to all the competent and professional appraisers I have had the pleasure of meeting and chatting with: You are a complement to your profession and we, as realtors, appreciate the hard work you put into your occupation.
Now, to the 2 appraisers who sent in mistake-riddled appraisals on a recent deal and NEARLY prevented my seller from selling, SHAME ON YOU! It’s not about you, it’s not about me, or the other realtor, or the mortgage co, etc. It’s about the Seller and the Buyer. Period. Their dreams, their goals, their aspirations…and yet you trample them without a moment’s thought (or so your appraisal made it seem).
I know you have taken a lot of heat over the market taking a dive. But that’s water under the bridge. It’s up to us to bring this market back and that’s only going to happen when good buyers and good sellers can complete a transaction.
When we met at the property, I brought both of you a brief synopsis of comparable properties and a quick opinion of value. Obviously, I knew (and expected) you would both do your own research but thought you would come close to my opinion. What happened??? Having lived in the neighborhood for 6 years and sold numerous homes in here, I am well aware of current values. In fact, 4 of the 6 comps you used in your appraisal were MY LISTINGS, yet you never called me for additional details on the homes. Ultimately, you made quite a few mistakes on the appraisal that required me to write a written appeal asking for corrections – but it was too late at that point.
Putting your incompetence aside, you wouldn't know that my seller lost his wife of 30 years about 18 months ago. He is battling cancer himself and his house was just too big and filled with too many memories of his soul mate. Not that you knew (but maybe deduced from public records), he was also bringing $50,000+ to the closing table to get the deal done. Ultimately, the home appraised as it should have – on the THIRD APPRAISAL - after 2 wildly inaccurate appraisals blew apart 2 different contracts. When you fail to complete your due diligence and sign off on that error-riddled appraisal, you are affecting people’s lives immeasureably.
If you are from across the Bay and unfamiliar with our area, why wouldn’t you take assistance from a “neighborhood expert”? Your terse response to my comps, “I’m not allowed to speak with you” is not quite accurate. Other appraisers have told me the law does allow you to consult with experts in the area to arrive at a reasonable fair market value. Just because a bank orders the appraisal from you doesn’t mean you automatically know our area…
In the end, it all worked out. The Buyer and Seller closed the deal for quite a bit more than your appraisals came in at. When you’re doing future appraisals, please consider speaking with the listing agent and enlisting their knowledge to help you accurately produce an appraisal. If you aren’t sure of a home’s features or have questions about the comps, PLEASE ASK…we are on your team and will get you whatever information you need.
To those 2 appraisers (I use that label loosely), please re-assign the appraisal if you see me listed as contact for the appraisal. I don’t want to work with you in the future. I want to work with professionals who show a willingness to understand our market and will complete an accurate appraisal of fair market value.
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