Colorado HOME Alliance - News Room
Legislative Alert
****HOME Alliance wishes to thank Homeowners Against Deficient Dwellings (HADD) for being a crucial source for news from other parts of the country. HADD is one of the country's premier grassroots organizations defending homeowners rights. We urge all HOME members to learn about and support this worthwhile organization: www.hadd.com
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RECENT NEWS STORIES
What's going on here in Colorado and around the Country
Wednesday, June 4, 2008
- Colorado: Beazer Homes Pulling Out of State - Atlanta-based Beazer Homes, one of the most troubled home builders in an ailing industry, is pulling out of Colorado.
http://www.rockymountainnews.com/news/2008/jun/03/beazer-homes-pulling-out-of-state/
- Colorado: Lake Granby Subdivision Subject of Lawsuit - T
Eighteen property buyers filed a civil complaint in 14th Judicial District Court on Friday against developers and those associated with the sale of certain lots in a subdivision near Lake Granby.
http://www.skyhidailynews.com/article/20080602/NEWS/119041517
- Could 50% of All Homes End Up in Foreclosure? - Just how bad could the housing bust get? How about half of all urban homes being in foreclosure?
http://www.oftwominds.com/blogjun08/foreclosure6-08.html?ref=patrick.net
- In the Wake of Home Crisis: Buyer Education - Concerned by foreclosures but keen to take advantage of sliding home prices, a growing number of prospective buyers in the United States are signing up for a different kind of class: home-buyer education.
http://www.reuters.com/article/marketsNews/idUSN2843971220080604
- Don't Raid Retirement Savings to Pay the Mortgage
- Don't Raid Retirement Savings to Pay the Mortgage
hhttp://finance.yahoo.com/focus-retirement/article/105183/Don't-Raid-Retirement-Savings-to-Pay-the-Mortgage;_ylt=AkK4YWOVVD0yJWlshh1_Nxy7YWsA?mod=retirement-401k
- Sliced, Diced' Mortgages More Likely to Default, Offit Says - Most of the 5.85 million subprime mortgages in the U.S. are in danger of defaulting in the next 12 months.
http://www.bloomberg.com/apps/news?pid=20601206&sid=aQkxaf9vldvE&refer=realestate
- Toll Bros. CEO: Housing Recovery Still Years Away - Toll Brothers CEO says housing in 'depression' and recovery may be 2 or 3 years away
http://biz.yahoo.com/ap/080604/toll_brothers_housing.html?.v=2
- Homebuilders Offer Bleak Outlook, Book Huge Losses - Homebuilder D.R. Horton said Tuesday the industry could face tough times until 2010, and underscoring that point, Toll Bros. and Hovnanian Enterprises Inc. each reported a second-quarter loss.
- Bernanke Blames Saving Glut for Housing Bubble -
In yet another long winded and self serving speech, Bernanke blames everyone but the Fed for the housing and credit bubbles. Not once did he mention interest rate policy at the Fed. However, he did blame foreign investors and "the global savings" glut for contributing to the problem.
http://globaleconomicanalysis.blogspot.com/2008/06/bernanke-blames-saving-glut-for-housing.html
- Hovanian Reports Huge Loss - [T]he company reported a net loss of $340.7 million, or $5.29 per share, for the quarter that ended April 30. This compared with a loss of $30.7 million, or 49 cents per share, for the same period a year ago.
http://calculatedrisk.blogspot.com/2008/06/hovnanian-reports-huge-loss.html
- Mortgage Applications Hit 6-Year Low as Rates Surge: MBA - Applications for mortgages stumbled to their lowest level in six years last week as rates on fixed-rate mortgages surged
http://www.housingwire.com/2008/06/04/mortgage-applications-hit-6-year-low-as-rates-surge-mba/
- Fed's Bernanke Sees Inflation Risk Rising - Speaking at a Harvard commencement address, Bernanke said overall inflation is significantly higher than he would like, but less than the 1970s-style stagflation.
http://www.mortgagenewsdaily.com/642008_Bernanke_Inflation.asp
- Downsizing the American Home-During the housing bubble, KB Home priced out first-time homebuyers by building bigger. Its new, more modest model provides a glimpse of what the return of the housing market may look like.
- Credit Expansion and Borrowed Time - According to the Joint Economic Committee of the U.S. Congress, the most important cause of our current housing bubble was a massive credit expansion. An overly accommodative U.S. monetary policy from the second quarter of 2002 through the third quarter of 2006
- Foreclosure Scams Lurking In Your Area - Delinquent homeowners looking to break free from default notices are getting tricked by brokers promising to save them from foreclosure, only to make off with thousands in fees or what home equity is left.
http://promo.realestate.yahoo.com/promo/foreclosure-scams-lurking-in-your-area.html
- Another Builder 527 - A beautiful thing about this country is that a poor boy can grow up to be a billionaire. Then he can give hundreds of thousands of dollars to influence elections -- legally, mind you -- and no one will notice.
http://blog.cleveland.com/openers/2008/06/carl_lindner_and_a_littlenotic.html
- Wall Street Says -2 + -2 = 4 as Liabilities Get New Bond Math - Leave it to Wall Street to profit from its own distress.
http://www.bloomberg.com/apps/news?pid=20601109&sid=a2ppBYA0ELaU&refer=home
Monday, June 2, 2008
- Colorado: Construction Defect Suit Hurts Condo Sales- Owners with units for sale in the towering Beauvallon building at East 10th Avenue and Lincoln Street are struggling to sell their units because a lawsuit against the developer is dissuading potential buyers and hanging up financing for anyone still interested.
- Foreclosures Weighing Heavier Than Ever On Prices
- They are blights on neighborhoods, they often are sold off in “short-sales,” where lenders sell the home for less than the mortgage, and they are often left in a horrid state of disrepair, thereby lowering prices even further.
- Alt-A Borrowers Looking More Subprime Than Prime - Further signs of the vulnerability of the “not quite prime” mortgage sector emerges in Fitch Ratings’ decision to revise its ratings methodogy for mortgage securities backed by Alt-A mortgages. Indeed Fitch suggests Alt-A borrowers are starting to look more subprime than prime.
- Lenders Asking Builders, Developers to Pay Down Loans - A recent snapshot of builders and developers in a special survey by the NAHB Economics Group has found that acquisition, development and construction (AD&C) credit has tightened since last year.
http://www.nbnnews.com/NBN/issues/2008-06-02/Front+Page/index.html
- Hooked on Debt - We believe that the United States and its households must reduce their dependence on foreign capital as soon as possible or suffer Iceland's sad experience. The alternative is a massive default and, even worse, higher inflation.
- It's Only Going to Get Worse - Everything you always wanted to know about the housing crash, but were afraid to ask.
http://www.weeklystandard.com/Content/Public/Articles/000/000/015/170jdcim.asp?ref=patrick.net
- Home Prices, Consumer Confidence Continue to Plunge - Falling home prices, plunging consumer confidence, and a modest upward revision to first quarter real economic growth highlighted the week's economic reports.
- The Trouble in Housing Trickles Up
- Last week, a new report showed that house prices nationwide were off 14.1 percent from a year ago, while the Commerce Department said sales of new homes remained near their lowest levels since 1991.
http://www.nytimes.com/2008/06/01/business/01town.html?_r=1&ref=patrick.net&oref=slogin
- Congress to Hold Hearing on Safety After NYC Crane Collapses - A Congressional subcommittee said today it will hold a hearing on construction safety across the U.S. after a May 30 crane accident in New York that killed two workers and earlier fatal incidents in New York and Las Vegas.
http://www.bloomberg.com/apps/news?pid=20601206&sid=axJOug3lEW.s&refer=realestate
- Home Prices Fall in 23 U.S. Cities as Defaults Rise - Home prices fell in 23 U.S. metropolitan areas in March, led by Sacramento and San Diego, as rising foreclosures prolonged the housing recession.
http://www.bloomberg.com/apps/news?pid=20601206&sid=a1GftpGS76j4&refer=realestate
- Cheap Chic: Home-Price Erosion Hits the $5 Million-Plus Market - A slice of the good life -- the really good life -- has gotten a lot more affordable lately.
- Loan Workouts Hit Recod in April - Bush-backed Hope Now reports progress; Congress says it's not enough
- Foreign Interest in U.S. Homes Growing - Dollar, real estate slump make American property appealing to foreigners
- Number of Foreclosed Homes Keeps Rising - Lenders Cut Prices To Jump-Start Sales As Inventory Grows
- Construction Spending Declines in April - Construction spending declined in April for residential, but increased to for non-residential private construction.
http://calculatedrisk.blogspot.com/2008/06/construction-spending-declines-in-april.html
- Real Price Declines Swamping Nominal Home Price Trends: First American - “Two thirds of all states now show year-over-year real estate declines according to this latest LoanPerformance HPI release,” said Mark Fleming, chief economist for First American CoreLogic.
- A Tale of Two Housing Markets: There’s REO, and Then There’s Everything Else - Proving that even within a single local housing market, sales trends can be more complex than they might otherwise seem, new data is suggesting that distressed assets can move housing markets — when prevalent enough.
- Credit Hurricane to Make Landfall - A very sobering article
http://www.minyanville.com/articles/MER-GS-P-lehman-CFC-countrywide/index/a/17398
- Fed's Lockhart Says Economy Still Faces Uncertainty - Too Soon to "Breathe Easy" - Atlanta Fed President Dennis Lockhart (non-voter) said the U.S. economy continues to face significant uncertainty and risks, but that he expects an improvement in growth in the second half of the year.
- Housing Affodability Back to Pre-Bubble Levels - Study shows formerly overvalued markets in California, Nevada and Arizona are seeing prices come down substantially.
http://money.cnn.com/2008/06/02/real_estate/home_price_valuations/index.htm?postversion=2008060217
- Foreclosures Cost Lenders, Homeowners, the Community, and You Big Bucks
- The cost of a foreclosure, it turns out, is pretty staggering and we wonder why lenders and the investors they represent aren't jumping at a solution, any solution, that would allow them to avoid going to foreclosure whenever possible.
http://www.mortgagenewsdaily.com/622008_Foreclosure_Costs.asp
- Lenders Foot the Bill for Abandoned Homes - Foreclosed homes that lie vacant and rundown need their lawns mowed and their yards cleaned up. Cities say taxpayers shouldn't have to bear that burden.
- Home Builders Err on ‘Smart Growth’ - HBA representatives have twisted the meaning of “smart growth” to serve their own interests, essentially arguing against any standards that might reduce the potential density of some developments.
http://www.registerguard.com/csp/cms/sites/dt.cms.support.viewStory.cls?cid=105150&sid=5&fid=1
Friday, May 30, 2008
- Colorado: Court Rules Against Homebuilder PAC- The Colorado Court of Appeals on Thursday ruled that a political committee representing the Colorado Association of Home Builders wrongly failed to report financial contributions from members in a series of television ads that targeted Colorado Rep. John Kefalas, D-Fort Collins.
http://www.bizjournals.com/denver/stories/2008/05/26/daily40.html
- Colorado: Appeals Court Reinstates Richmond Claims Against Subcontractors - According to court records, the case stemmed from homebuyers' complaints of basement water intrusion in Richmond-built homes. The builder said it made repairs to defects in about 3,000 homes.
http://www.bizjournals.com/denver/stories/2008/05/26/daily34.html
- Economists React: ‘Little Indication’ of Housing Bottom - The "experts" weigh in.
http://blogs.wsj.com/economics/2008/05/27/economists-react-little-indication-of-housing-bottom/
- Hope Now Mortgage "Workouts": Numbers Not Fantastic - New numbers today from the alliance formed by Treasury Secretary Henry Paulson to save troubled borrowers.
- First Housing Bust, Now Baby Bust - Is the recession causing a birth dearth?
- Inflation - Wary Fed Looks Ahead to Rate Increases - Federal Reserve
policy makers warned on Wednesday that interest rate increases might be needed before too long to curb inflation, even as the United States struggles with a weak economy
http://www.nytimes.com/reuters/business/business-usa-fed.html?ref=patrick.net
- Lose Homes, Pay More Tax - Some of the biggest losers in the real estate slump are not purchasers of mansions they could not afford. They are buyers of second homes — or third ones, for that matter — who are sitting on a tax time bomb.
http://www.nytimes.com/2008/05/30/business/30tax.html?_r=1&ref=patrick.net&oref=slogin
- Foreclosure Phil - Who's to blame for the biggest financial catastrophe of our time? There are plenty of culprits, but one candidate for lead perp is former Sen. Phil Gramm.
http://www.motherjones.com/news/feature/2008/07/foreclosure-phil.html?ref=patrick.net
- We're Nowhere Near the Housing Bottom - States where sales, construction and prices rose most during the lax lending era will take longest to recover, analysts say. Many are located in the West, such as Arizona, Nevada and California.
http://www.huffingtonpost.com/hale-stewart/were-nowhere-near-a-botto_b_103827.html
- Not So Fast On New Home Sales
- Revised vs. unrevised numbers
http://seekingalpha.com/article/79496-not-so-fast-on-new-home-sales
- Dropping a Brick - House prices are falling even faster than during the Great Depression
http://www.economist.com/displaystory.cfm?story_id=11453745&ref=patrick.net
- "Liar Loans" Live Up To Expectations - The Wall Street Journal reported yesterday that Countrywide estimated that its liability for such claims rose to nearly $1 billion as of March 31, 2008. Countrywide took a first-quarter charge of $133 million for claims that have already been paid. The loan disputes allege bogus appraisals, inflated borrower incomes, and other misrepresentations made at the time the loans were originated. Demands from loan buyers include Fannie Mae, who claimed in a recent conference call that it was attempting to review every loan that defaults and force lenders to buy back loans that failed to meet promised standards.
- Consumer Confidence at 28-Year Low - Consumer confidence fell to a 28-year low in May as inflation expectations soared, according to a survey released on Friday that presents a dilemma for the Federal Reserve.
http://news.yahoo.com/s/nm/20080530/bs_nm/usa_economy_sentiment_dc;_ylt=ApKxnGKJtd.LtgbH5XtHMe_v5rEF
- Newly Delinquent Outnumbering Those Catching Up by Two to One - Newly delinquent mortgage borrowers outnumbered people who caught up on their overdue payments by two to one last month, a sign that nationwide efforts to help homeowners avoid default may be failing.
http://www.bloomberg.com/apps/news?pid=20601087&sid=arGQ_rKO2ai8&refer=home
- KB HomesCEO Predicts 10% Futher Drop in Home Prices - Bloomberg Video
- Fed's Kohn Says Financial Regulations Should Be Strengthened - Fed Vice-Chairman Donald Kohn said it was unclear how much strengthening of the U.S. financial regulatory system was needed, but that the need for reforms was evident.
http://www.mortgagenewsdaily.com/5302008_Financial_Regulation.asp
- Arbitration: Why Do Card Companies Almost Always Win? - Many Say the Deck Is Stacked Against Consumers in Credit Card Disputes
- Housing Crisis Legislation Likely - Despite motion, amount of relief is still uncertain
http://www.theadvertiser.com/apps/pbcs.dll/article?AID=/20080529/BUSINESS/805290320\
- Bad Omen for Banks? - News from KeyCorp suggests U.S. banks' loan losses may worsen. Is the credit crisis hitting a second, even scarier phase?
http://www.businessweek.com/investor/content/may2008/pi20080528_223289.htm?chan=rss_topStories_ssi_5
- The Meltdown Lowdown - This week in economic news: House prices continue to plummet, speculation is probably not to blame for high gas prices, and new corruption is exposed in the mortgage industry.
http://www.prospect.org/cs/articles?article=the_meltdown_lowdown_052908
Thursday, May 29, 2008
- Realtors Settle Anti-Trust Charges
- Settlement opens listing database, may lower commissions
http://www.consumeraffairs.com/news04/2008/05/realtors_antitrust.html
- Did Wall Street Wreck The Economy?
- While consumers face skyrocketing gasoline prices, the economy is struggling to overcome the wave of foreclosures caused by the subprime meltdown and collapse of the housing market. Could the two economic misfortunes have a common thread?
http://www.consumeraffairs.com/news04/2008/05/wall_street.html
- Home Prices Across the Nation - An interactive map of the 20 largest home markets - including Denver.
http://www.nytimes.com/interactive/2008/05/28/business/20071031_HOUSING_GRAPHIC.html#
- Mon Ousted from TOUSA CEO Post - Antonio B. Mon, president and CEO of the financially troubled TOUSA for nearly six years, will relinquish both titles within the next 30 days. He will be be replaced by John R. Boken, the company's chief restructuring officer since January, when the company filed for protection from its creditors under Chapter 11 in U.S. Bankruptcy Court.
http://www.builderonline.com/business/mon-ousted-from-tousa-ceo-post.aspx
- The Fading of the Mirage Economy - Suddenly, it seems, we're getting hit from all directions.
http://www.nytimes.com/2008/05/28/business/28housing.html?_r=1&oref=slogin
- The Housing Capital Trap Snaps Shut - Examining how the capital trap snapping shut in housing will affect the middle class, which relies so heavily on home equity for its wealth--and for the past six years, for its spending.
http://www.oftwominds.com/blogmay08/REcapital-trap.html?ref=patrick.net
- Housing Market Shows No Signs of Life - The housing market cannot improve until the supply and demand picture does and these numbers are pretty ugly.
http://seekingalpha.com/article/79291-housing-market-shows-no-signs-of-life
- Lenders, Borrowers Discuss Bad Loans - NPR Broadcast Story (Audio)
http://www.npr.org/templates/story/story.php?storyId=90864867&ref=patrick.net
- Tumbling Prices Dog U.S. Housing Market - The fog of misery enveloping the American housing market has thickened with the sharpest drop in property prices for 20 years, leaving households in worst hit cities facing the prospect of their homes almost halving in value over a year.
http://www.guardian.co.uk/business/2008/may/28/useconomy.subprimecrisis?ref=patrick.net
- Is it Better to Continue Renting or Buy a House?- As with many financial decisions (e.g., invest in stocks or bonds?, whether or not to use leverage?, whether to continue to hold a stock or sell it now?), much can be said about the choice between renting and buying a house, although we only really find out tomorrow if we truly are making the right decision today.
http://seekingalpha.com/article/79333-is-it-better-to-remain-a-renter-or-buy-a-house
- US Economy: The Worst Is Yet to Come - Since the U.S. economy showed positive growth for the last quarter, some commentators in the business press are saying that we are not necessarily going to have a recession, or that if there is one it will be mild. This is a bit like the proverbial story of the man who jumped out of a window 60 floors up, and then said “so far, so good,” as he passed the 30th floor.
- In Housing, the Strong Turn Weak - America’s home-buying season, when for-sale signs sprout like dandelions, is shaping up to be even worse than expected this year, with prices falling, sales slowing and few signs of a turnaround emerging.
http://www.nytimes.com/2008/05/28/business/28housing.html?_r=1&oref=slogin
- March S&P/Case-Shiller Figures - Denver down 5.04% over last year
http://seekingalpha.com/article/79014-march-s-p-case-shiller-figures?source=patrick.net
- Fed to Make Fresh Batch of Bank Loans - The Federal Reserve
announced Thursday that it will make a fresh batch of short-term cash loans available to squeezed banks as part of an ongoing effort to ease stressed credit markets.
http://news.yahoo.com/s/ap/20080529/ap_on_bi_ge/fed_credit_crisis;_ylt=Aoke1bUyeyFDcU4pLBzh7CHv5rEF
- Credit And Borrowers: Saving Your Status is Not Always Fair - I was moderating a panel of two governors and an economist today on the foreclosure crisis. It was much of the usual stuff until Pennsylvania Gov. Ed Rendell made a bold proposal.
- Choosing Bankruptcy to Stay Afloat - Despite Tighter Rules, More Strapped Americans Seek Debt Relief
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/27/AR2008052703330.html
- The Squeeze of the Middle Class - For a generation of workers finding it ever harder to afford homes of their own, the American dream seems to need readjustment.
- Alt-A Problems Grow, While Subprime Takes Turn for the Worse - The 2007 vintage isn’t the only Alt-A vintage facing problems, of course: 19.3 percent of borrowers with loans originated in 2006 were more than 60 days delinquent at the end of April, a jump of nearly 10 percent from March. Cumulative losses percentages for 2006 vintage
http://www.housingwire.com/2008/05/28/alt-a-problems-grow-while-subprime-takes-turn-for-the-worse/
- Foreclosures a Bigger Political Issue Than You Think - “We still have two million more people that need to go through this process. That’s like the entire town of Tampa going through foreclosure.”
- Investors Press Lenders on Bad Loans - Buyers Seek to Force Repurchase by Banks;
Potential Liability Could Reach Billions According to scientific research, even the President is more popular than Binding Mandatory Arbitration.http://online.wsj.com/article/SB121193306681924605.html?mod=googlenews_wsj
- Real Estate Overcharges: A Dollar Here, a Million There… - In the buyer's market that is the aftermath of the sub-prime mortgage mess in New York and other cities, it will be interesting to see just how active will be the purveyors of fraudulent real estate fees and overcharges, as the market attracts property-hungry opportunists like bees to honey.
http://www.lawyersandsettlements.com/articles/10674/real-estate-dollars-become-millions.html
- Financial Winners & Losers: KeyCorp - Defaulting Homebuilders sends stock plunging
Wednesday, May 28, 2008
- Home Prices: How Low Can You Go? - Important graphic representation of individual cities
http://seekingalpha.com/article/79116-home-prices-how-low-can-you-go
- The Bottom of the Home Market Looks More Distant - The national index showed that prices fell 14.1% from a year earlier — the biggest drop in 20 years. Sales of foreclosed properties are pushing down prices, especially in weak markets such as South Florida, Nevada, Southern California, Arizona and Rhode Island.
- Picking a Bottom in the Housing Market - Or Not
- There's an old trading aphorism that is worth following for both veteran fund managers and market neophytes: picking bottoms gives you stinky fingers.
http://seekingalpha.com/article/79162-picking-a-bottom-in-the-housing-market-or-not
- Housing Prices Fall 14.1% in Sign of Continuing Slump - America’s home-buying season, when for-sale signs sprout like dandelions, is shaping up to be even worse than expected this year, with prices falling, sales slowing and few signs of a turnaround emerging.
http://www.nytimes.com/2008/05/28/business/28home.html?_r=1&ref=patrick.net&oref=slogin
- U.S. MBA's Mortgage Applications Index Fell 4.6% Last Week
- Mortgage applications in the U.S. last week dropped to their lowest level in a month, reflecting less refinancing as interest rates rose.
http://www.bloomberg.com/apps/news?pid=20601206&sid=aoiAMzK7ndEI&refer=realestate
- 4 Reasons Housing Won't Recover Quickly - More foreclosures possible, thanks to a broken mortage lending system
- Foreclosure Sales Increasing - Buyers Snatch Up Foreclosed Properties After Big Price Cuts
- U.S. Economy: Confidence Falls as Home Values Decline - Confidence among American consumers fell in May to the lowest level since 1992 as the two-year housing slump showed no sign of bottoming.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aW4IIi.Q0Bm0&refer=home
- NAR Tells Public All is Fine; In Private Says "Cut, Cut Cut!" - So the NAR is saying in public that all is fine, and prices have bottomed. But in REALTOR magazine, they're telling the 6%'ers to cut the prices fast
http://housingpanic.blogspot.com/2008/05/so-nar-is-saying-in-public-that-all-is.html
- A Lot of Bubbles in the Last 37 Years - Dr. Ben Steil's idea that a "fiat currency bubble" may be much more important (and more dangerous) than any asset bubble makes more sense with each passing day
http://themessthatgreenspanmade.blogspot.com/2008/05/weve-sure-had-lot-of-bubbles-in-last-30.html
- Home Sales Post Unexpected Increase in April - Home sales post unexpected increase in April but remain near lowest level in 17 years
- 81% of Americans Hate BMA: Survey - According to scientific research, even the President is more popular than Binding Mandatory Arbitration.
- Another Way to Get Fooled in toBMA - Remember, the Better Business Bureau is a BUSINESS orgnization NOT a consumer protection orgnization
- Banks Miss an Easy Housing Fix- Lenders say they want to help troubled homeowners, but they are delaying deals that could save everyone - including the lenders themselves - a lot of time and money.
http://money.cnn.com/2008/05/28/real_estate/short_sales_long_waits/index.htm?postversion=2008052807
Tuesday, May 27, 2008
- Colorado: Garfield County Sees Increase in Foreclosures - Colorado - Garfield County Public Trustee Bob Slade isn't concerned with the increase in foreclosures the county has seen in the first quarter of 2008, but it's still a little early in the year.
http://www.postindependent.com/article/20080521/VALLEYNEWS/611723078
- Colorado: Foreclsoure Rates Soar in Adams County - A foreclosure report released last week by the Colorado Department of Local Affairs had bad news for the state in general and Adams County in particular.
- Colorado: Telluride Taxes Drop as Home Sales Slow - When real estate sneezes, Telluride catches a cold.
http://www.telluridenews.com/news/x2118743189/Taxes-drop-as-home-sales-slow
- Home Prices Down and Unsold Listings Way Up - It was the eye-popping 10.5% jump in the inventory of unsold homes. The number of homes available for sale jumped to 4.55 million at the end of April, representing an 11.2-month supply at the current sales pace. There was a 10-month supply of homes at the end of March.
- Expert Sees "Long, Painful End' For Stubborn Housing Downturn - "This is going to be another difficult spring," said Mark Zandi, chief economist at Moody's Economy.com. "I think we are at the beginning of the end of the housing downturn, but it is going to be a long and painful end."
http://www.rockymountainnews.com/news/2008/may/26/expert-sees-long-painful-end-for-stubborn/
- Watch Out! Home Prices Are Headed Even Lower
-
The National Association of Realtors' existing-home sales report for April, released Friday, showed that sales fell 1 percent—slightly above consensus estimates—from March and are now down nearly 18 percent from last year's levels. At the same time, total housing inventory climbed nearly 11 percent. Median existing-home prices are now 8 percent below April 2007 levels.
- 2007 Worst Ever Vintage for Subprime Loans - Early reviews of the 2007 vintage of Subprime, Alt-A and Prime Jumbo residential mortage-backed securities indicate it will be the worst ever in terms of delinquencies, judging from Standard & Poor’s latest assessment. The delinquency rate on Alt-A RMBS, for example, is four times as high as the 2006 vintage at the same stage of seasoning.
- Mortgage-Bond Guru Hit by Loan Bust - Lewis Ranieri is credited with inventing mortgage-backed securities two decades ago, and recently he sounded warnings about mortgage risks. Yet he couldn't save his own company from getting tangled in the real-estate loan bust.That's alarming -- not just for investors in his small Franklin Bank Corp., but for anyone hoping the credit crisis would end soon.
http://www.dailycamera.com/news/2008/may/26/all-business-mortgage-bond-guru-hit-by-loan-bust/
- Housing Discrimination Complaints Rise - The federal government is filing fewer housing discrimination charges even as consumer complaints against landlords, real estate agents and mortgage brokers have risen steadily.
- U.S. Recession Still Probable: Greenspan - Speaking to the Financial Times from Washington, Greenspan said he believed "there is a greater than 50 percent probability of recession."
- Housing Bill Helpful But No Panacea - Congress looks set to throw the U.S. housing market a multibillion-dollar lifeline that may demand more sacrifice than mortgage lenders and investors are willing to make to save distressed borrowers from foreclosure.
- US and UK Housing Bear Market Trends - The housing bear markets continue to bite into economic activity as the US heads for recession this year and the UK during 2009.
- Struggling Homebuilders Find Unexpected Saviors - The precipitous slide in home values and a glut of unsold properties are pushing U.S. home builders to the brink of insolvency, but a posse of unexpected saviors could help keep the companies out of bankruptcy court until home buyers return.
- May Consumer Confidence Falls to Near 16-Year Low - A private research group says that soaring gas prices and weakening job prospects left shoppers gloomier about the economy in May, sending a key barometer of consumer sentiment to its lowest level in almost 16 years.
- Foreclosures in Military Towns Surge at Four Times U.S. Rate -
Foreclosures in U.S. towns where soldiers live are increasing at a pace almost four times the national average, according to data compiled by research firm RealtyTrac Inc. in Irvine, California.
http://www.bloomberg.com/apps/news?pid=20601206&sid=awj2TMDLnwsU&refer=realestate
- The Giant Pool of Money - A special program about the housing crisis produced in a special collaboration with NPR news. We explain it all to you. What does the housing crisis have to do with the turmoil on Wall street? Why did banks make half-million dollar loans to people without jobs or income? And why is everyone talking so much about the 1930s? It all comes back to the Giant Pool of Money.
- Skipped Dues Crunch HOAs - Delinquent fees at condo and homeowner associations have become an outgrowth of the mortgage crisis. Housing cooperatives, in a squeeze because of unpaid fees from struggling homeowners, are scraping to pay for landscaping, maintenance, pools, recreation centers and other amenities.
http://www.usatoday.com/money/economy/housing/2008-05-26-condo-fee_N.htm?csp=34
- Plenty of "For Sale" Signs but Not Many Sales - One economist says end of housing downturn will be a long, painful one
- Home Prices Plunge 14.1% in 1st Quarter - Record Crash- Standard & Poor's/Case-Shiller study shows record decline for housing prices in first three months of 2008.
http://money.cnn.com/2008/05/27/real_estate/home_prices.ap/index.htm?postversion=2008052709
Monday, May 26, 2008 - God Bless Our Veterans
- Colorado: States Housing Market Fares Better Than Rest of the Country - Home prices in Colorado generally fared much better than the U.S. market as a whole during the first quarter of 2008, according to an index considered to be the most comprehensive.
http://www.rockymountainnews.com/news/2008/may/22/state-fares-better-than-us-on-home-prices/
- Is For Sale by Owner Right for You? - Although the data vary, sellers who aren't affiliated with an agent clearly represent a significant chunk of the overall market today.
- Affordability: Is it A Sign Of The Housing Bottom? - I think the affordability factor is the best news I’ve heard in this housing market in quite a while, but I worry about the supply and demand theory.
- Realtors Complain Lending Limits Hurting Recovery - More than 4.5 million unsold homes clog the market
http://www.consumeraffairs.com/news04/2008/05/home_sales.html
- Housing's False Bottom - Economic advise from Zippy the Pinhead
http://www.oftwominds.com/blogmay08/false-bottom5-08.html?ref=patrick.net
- FDIC’s Bair: Foreclosure Aid Is ‘Train Wreck’ - Efforts to stem the record tide of U.S. foreclosures are a “train wreck,” hampered by a lack of resources and the continued deterioration of the real-estate market, a federal banking regulator said.
http://blogs.wsj.com/economics/2008/05/21/fdics-bair-foreclosure-aid-is-train-wreck/?ref=patrick.net
- Did We Learn Anything Over the Past Two Years? - What is Fannie thinking?
- Freddie Mac Suffers Bout of Temporary Insanity
- How long does the word ``temporary'' mean? The accountant who wants to stay employed knows the right answer: ``How long do you want it to mean?''
http://www.bloomberg.com/apps/news?pid=20601039&sid=aLklP1rkra7w&refer=patrick.net
- More Questions Are Raised About Moody’s Ratings - News that Moody’s might have made such mistakes emboldened the company’s many critics and sent its stock price tumbling. Its shares closed down 15.9 percent, to $36.91, their biggest one-day decline in almost a decade.
- How Low Interest Rates Fueled the Housing Bubble But Can't Stop the Bust - The standard propaganda is that low interest rates are wonderful because business can expand cheaply, hiring more well-paid workers, Mom can bake more apple pies and it's Morning in America, blah blah blah.
http://www.oftwominds.com/blogmay08/low-rates5-08.html?ref=patrick.net
- Subprime Mortgage Lessons from the Used Car Lot - Subprime loans pay a premium for a specific reason; they require extra care
http://seekingalpha.com/article/78813-subprime-mortgage-lessons-from-the-used-car-lot
- Moody's Falls Most Since 1999 on Ratings Error Probe - Moddy's Corp.
plunged the most in nine years after the ratings company said it is conducting ``a thorough review'' of whether a computer error caused it to assign Aaa rankings to debt securities that later fell in value.
http://www.bloomberg.com/apps/news?pid=20601087&sid=adTqUJU3rbKE&refer=patrick.net
- Survey: Homeowner Sentiment Darkens in May - Twice as many Americans expect the value of their homes to fall in the next 12 months than a year ago, while price rises in the next five years will fail to keep pace with inflation, according to the results of a survey.
http://news.yahoo.com/s/nm/20080523/bs_nm/usa_economy_umichigan_dc;_ylt=An64vymTC_PrWtKUj3W0W.nv5rEF
- Plenty of "For Sale" Signs - But Where Are the Sales? - Another difficult year predicted for slumping housing industry with rebound still months away
- Accounting Regulators Probe Subprime Cases - Accounting regulators have enforcement investigations under way stemming from the subprime mortgage debacle, Public Company Accounting Oversight Board Chairman Mark Olson said Wednesday.
http://www.smartmoney.com/breaking-news/ON/index.cfm?story=ON-20080521-000838-1455
- Even the Ritzy Homeowners Are Feeling the Fall - Video from Barrons- No one is immune.
http://www.marketwatch.com/tvradio/player.asp?guid={42714FEB-95F4-4FBD-8B2E-D09439B6132D}
- A Nation of Borrowers - Using credit cards and retirement funds to get by.
http://www.philly.com/inquirer/currents/20080525_A_nation_of_borrowers.html
- Bought But Can't Hold - Commentary: Put your house on the market now? Are you nuts?
- Why It's a Bad Time to Buy a House: High 'Real' Mortgage Rates, Record Inventories
- Because home prices are depreciating, the "real" mortgage rate for homebuyers is about 15% - Good Video
- Bank Failures to Surge - IndyMac, Corus, UCBH under pressure as credit crunch slows economy
- UBS Falls After Saying More Mortgage Losses Possible - The
European bank hardest hit by the U.S. subprime contagion, fell the most in more than two months in Swiss trading after saying it may face more losses from mortgage securities.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a865nkH0FS7A&refer=home
- Subprime Delinquiencies Continue to Climb - S&P: Delinquencies among subprime mortgages from 2005 through 2007 continue to rise
- Home Price Index Posts Biggest Loss in 17 Year History - US home prices fall 3.1 percent in first quarter in largest drop on record
- Bribery, Kickbacks, Indictments, Ratergate - Fraud, greed, and market tops go hand in hand like clockwork. We saw that in housing, we are seeing it other places as well
http://globaleconomicanalysis.blogspot.com/2008/05/bribery-kickbacks-indictments-ratergate.html
- Fallout From a Bailout
- How the Bear Stearns Intervention Will Haunt the Fed
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/21/AR2008052102429.html
- Exisiting Homes: Months of Supply Vs. Real Prices - Here is a graph of existing home Months of Supply vs. quarterly Real Case-Shiller National house prices since Jan 1994.
http://calculatedrisk.blogspot.com/2008/05/existing-homes-months-of-supply-vs-real.html
- New Poll: Americans Say "No Thanks" To Binding Arbitration - A new national opinion poll shows widespread disapproval of binding arbitration provisions in consumer contracts and overwhelming support for the Arbitration Fairness Act now pending in Congress.
http://pubcit.typepad.com/clpblog/2008/05/new-poll-americ.html
- Condo Market Continues To Decline - The Multifamily Condo Market Index (MCMI) continues to reflect a contracting market – the 15.2 index value for current market conditions in the first quarter of 2008 is roughly half the 29.6 value from a year earlier.
- Foreclosure Crisis Update - Although the number of loan modifications rose rapidly in the last six months, the number of foreclosures has risen even faster. While hundreds of thousands have already lost their homes, there are millions in the foreclosure pipeline who could still be helped. What else do the numbers tell us?
http://pubcit.typepad.com/clpblog/2008/05/foreclosure-pre.html
- Home Prices Post Record Decline - A government study finds home prices fell 1.7% in the first quarter of 2008. California, Nevada see sharpest drop.
http://money.cnn.com/2008/05/22/real_estate/ofheo_report/index.htm?postversion=2008052211
- Senator Feingold Argues for Consumers' Rights - Senator Feingold has demonstrated an impressive understanding of the problems that arbitration poses for consumers
http://citizen.typepad.com/watchdog_blog/2008/05/on-friday-dmi-p.html
- In Search of a Fix For Jumbo Loans - The new jumbo loans that were supposed to get the real estate market moving haven't done the trick. A congressional hearing on Thursday examines why.
http://money.cnn.com/2008/05/22/real_estate/jumbos_weighed_down/index.htm?postversion=2008052315
- Builders Tout No-Money Down, Adjustable Mortgages - Highlighthing their desperation to sell houses, builders are bringing back the gimmicks - mortgage rates that start low, help with down payments, zero out-of-pocket expenses - that helped fuel the housing bubble before its spectacular bust.
http://money.cnn.com/news/newsfeeds/articles/djf500/200805221117DOWJONESDJONLINE000741_FORTUNE5.htm
- Housing Rescue: Help, but for How Many? - Sponsors of the Senate's bipartisan mortgage bill say it will help 500,000 people. But an Oct. 1 start date means many homeowners could be out of luck.
- Home Sales Dip; Prices Fall Sharply - Realtors' group says April sales by homeowners declined by 1%, while inventory jumped 10% and home prices tumbled another 8%.
http://money.cnn.com/2008/05/23/real_estate/existing_home_sales/index.htm?postversion=2008052312
- Banks and Builders Hit the Skids ... Again! - Bank of America, National City, and American International are all at 52-week lows. Countrywide Financial and Wachovia are almost there, too.
http://www.moneyandmarkets.com/Issues.aspx?Banks-and-Builders-Stocks-are-Value-Traps-1807
- Buffett Sees "Long, Deep" Recession - The United States is already in a recession and it will be longer as well as deeper than many people expect, U.S. investor Warren Buffett said in an interview published in German magazine Der Spiegel on Saturday.
http://news.yahoo.com/s/nm/20080524/bs_nm/buffett_us_recession_dc
- FBI: Corporate, Mortgage Fraudsters Actively Threaten Your Financial Future - While the Federal Bureau of Investigation can claim success against all manner of fraud in the US, the number of cases and the shear volume of lost money is obviously a tidal wave that is only barely held back.
Wednesday, May 21, 2008
- Colorado: Metro Housing Market Gets D-Minus - But analyst sees bottom this year, then a rebound
http://www.rockymountainnews.com/news/2008/may/20/metro-housing-market-gets-d-minus/
- Countrywide CEO Mozilo's "Disgusting" Email Reply: OOPS! - Angelo Mozilo has done it. He hit “reply” instead of “forward” on the computer. For most of us, the mistake usually results in a “DOH!” and perhaps and explanation and/or apology, but Mozilo’s is now resulting in an online slam-fest.
- Senators Reach Agreement on Housing Bill - A bill that would support affordable housing, prevent foreclosures, and create a stronger regulator for Fannie Mae and Freddie Mac cleared a major hurdle yesterday when the two key senators involved finally found a proposal they could both accept.
http://www.builderonline.com/business/senators-reach-agreement-on-housing-bill.aspx
- Economic Tide is Rising for Repo Men - So many people have so many things they can no longer afford. This is an excellent time to be a repo man.
- The New York Times Still Doesn't Understand the Housing Crisis - Someone has to get these folks a program so they can follow the housing crash. The problem in the housing market is falling prices.
- Soaring Foreclosure Numbers Mean More Prey for Vulture Funds - Banks Desperate to Unload Distressed Properties Turn to Private Equity Firms
- Four Overlooked Homeownership Costs
- Let's take a look at the four most overlooked items that tend to be a burden to all homeowners and examine how these costs can be minimized.
http://biz.yahoo.com/investopedia/080514/2387.html?.v=patrick.net&.pf=real-estate
- Fannie CEO Sees Steep Home-Price Drop - Fannie Mae's CEO told shareholders Tuesday that the housing market is "about halfway through" its crisis and home prices could fall as much as 25 percent before the worst is over.
http://ap.google.com/article/ALeqM5g0l00gOvEhC1X6A1Os36NGOqi7pAD90PJ8OG0?ref=patrick.net
- Senate Panel OKs Housing Rescue Bill - Bipartisan package gains wide support in committee
- IRS Issues Guidance on Loan Modifications - In clarification that market participants said will further embolden servicers to modify mortgages that are likely headed for trouble, the Internal Revenue Service on Monday outlined the tax effects on securitized mortgages that have been modified to avoid foreclosures.
http://www.housingwire.com/2008/05/20/irs-issues-guidance-on-loan-modifications/
- Crackdown on Foreclosed Kids? - Districts from Florida to California are hiring private investigators, creating anonymous tip lines and imposing penalties when they believe people have registered at false addresses. The measures often are spurred by parents who feel they pay a premium in property taxes to get their children into good schools.
http://calculatedrisk.blogspot.com/2008/05/crackdown-on-foreclosed-kids.html
- Holes in the Roof - Can Congress shape a housing bailout that does more good than harm?
- Impac Mortgage Reports Loss of $2B for 2007 - Impac Mortgage Holdings Inc., a real estate investment trust, said late Tuesday it lost $2.05 billion in 2007 because of rising loan-loss provisions.
http://www.forbes.com/feeds/ap/2008/05/21/ap5033354.html?partner=alerts
- Low-Income Renters to Pay for Housing Bailout - Unfortuantely this is no joke. This appears to be the latest gem to come from our leaders in Congress.
- Homes Are Biggest Bargain Since 2004 - Falling prices opened up home buying for many more Americans.
- Foreclosures Mean Opportunity for Habitat - The foreclosure crisis that has forced thousands of families from their homes has given something good to the nation's best-known housing charity: Cheap properties for sale in communities around the country.
http://news.yahoo.com/s/ap/20080519/ap_on_bi_ge/foreclosure_habitat
- Reverse Mortgages: Beware the Come-ons - The loans can help you tap the equity in your house. Just don't get tripped up by greedy salespeople.
- Court Looks Askance at Builder's Mandatory Arbitration Clause - The relationship between builders of new homes and buyers of new homes is a multi-faceted one. In many cases there are exemplary stories of customer service and quality performance. Sometimes, though, there can be tensions and disagreements. In even the best of cases, there can be an awareness – as with buyers and sellers of resale homes – that the relationship between the parties may be adversarial. Even if there is no conflict at the time, both parties know that things may change down the road.
- "Green" Can Be More Than a Slogan - Building green requires more than a few solar panels.
- Home Buying Experts Warn - Builder Loan Fine Print Could Cost You Thousands
- The home loan packages offered by builders are often touted as being very convenient. But when it comes to evaluating the true benefits the picture is often quite different, according to the home buying specialists at the National Association of Exclusive Buyer Agents
http://money.cnn.com/2008/05/19/news/economy/dodd_shelby_deal/index.htm?postversion=2008051922
- Is Fraud Part of TOUSA's Bag of Tricks? - Florida-based homebuilder Tousa last July improperly used $1 billion in assets to secure a $500 million credit line from Citigroup and Wells Fargo
http://dealbook.blogs.nytimes.com/2008/05/20/carlyle-blackstone-miffed-at-bankrupt-homebuilder/
- Home Sick - Greedy lenders, naive buyers, and sinking home values have driven millions into foreclosure. What it means for you, your community, and your own financial health.
http://www.rd.com/your-america-inspiring-people-and-stories/home-sick/article57836.html
Tuesday, May 20, 2008
- Colorado: Trying to Buy a Foreclosed Home in a Flooded Market- With so many foreclosures available in the housing market, it should be easy to pick up a good deal. But a lot of frustrated buyers are walking away from their dream homes because time is not on their side.
http://www.9news.com/news/article.aspx?storyid=92044&ref=patrick.net
- Spring a Bust for Housing Market - Even the builder's association knows it's true.
http://www.nbnnews.com/NBN/issues/2008-05-19/Coast+to+Coast/index.html
- Post-Subprime Economy Means Subpar Growth as New Normal in U.S. - A normal U.S. economy is likely to look a lot different, and worse, after the credit crisis is over and financial markets settle down.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aVZRne8kZBGI&refer=patrick.net
- Housing Woes In U.S. Spread Around Globe - The collapse of the housing bubble in the United States is mutating into a global phenomenon, with real estate prices swooning from the Irish countryside and the Spanish coast to Baltic seaports and even parts of northern India.
http://query.nytimes.com/gst/fullpage.html?res=9D04EFDB173AF937A25757C0A96E9C8B63&ref=patrick.net
- No Bottom in Sight: Home Prices to Fall Another 10-15 Percent - VIDEO - The current downturn is "much more serious" than past housing declines, Smith says, predicting another 10%-15% downside, on average, for national home prices over the next 6-to-12 months before any recover begins.
- Significance of the Housing Compromise - This is good news for the housing market, the economy, and the stock market.
http://seekingalpha.com/article/78001-significance-of-the-housing-compromise
- Banks Keep $35 Billion Markdown Off Income Statements - Banks and securities firms, reeling from record losses resulting from the collapse of the mortgage securities market, are failing to acknowledge in their income statements at least $35 billion of additional writedowns included in their balance sheets, regulatory filings show.
http://www.bloomberg.com/apps/news?pid=20601170&refer=patrick.net&sid=ajTu.H_velzQ
- FDIC: Fights US Housing Market Deflation with Inflation - "Too many unaffordable mortgages are causing a never-ending cycle – a whirlpool of falling house prices and limited refinancing options that contribute to more defaults, foreclosures and the ballooning of the housing stock."
- Credit Crisis Will Extend Into 2009, Oppenheimer Says - The U.S. credit crisis will extend into and even beyond 2009 as banks will write off more than $170 billion of additional reserves by the end of next year, according to Oppenheimer & Co. estimates.
http://www.bloomberg.com/apps/news?pid=20601087&sid=auq3s_xEc9BI&refer=home
- Mary Had a Little Lamb and a Jumbo Mortgage - Once upon a time, there lived a King who granted each subject enough money to make his home his castle.
http://www.bloomberg.com/apps/news?pid=20601039&sid=aXf.l14aZp4U&refer=home
- Dodd, Shelby Agree on $300 Billion Mortgage-Insurance Measure - The proposed legislation would a create a Federal Housing Administration program to insure up to $300 billion in refinanced mortgages for struggling borrowers after loan holders reduce principal. The Banking Committee is scheduled to debate and vote on the plan today.
http://www.bloomberg.com/apps/news?pid=20601206&sid=aU326QIxnbTo&refer=realestate
- Megabubble Waiting For New President in 2009 - 'Numbers racket' exposes potential disaster for economy, markets .
- S