NEW YORK – March 31, 2014 – More banks are lowering minimum FICO score requirements in an attempt to shore up lending for underserved borrowers.
Carrington Mortgage Services is the latest company to announce that it lowered its minimum FICO score to 550. It also expanded guidelines on several FHA VA, and USDA loan programs to aid those with FICO scores below 640.
Wells Fargo, the nation’s largest mortgage lender, said in February that it was lowering its minimum FICO score requirements on FHA-backed mortgages from 640 to 600. The move, bank officials said, was aimed at “opening up our credit box more.”
One in three consumers has a FICO score below 650, according to Carrington, which says it’s refocusing its business on the underserved segment and eliminating conventional and jumbo loans. In addition to accepting more lower-score borrowers, it’s also limiting its acceptance of wholesale submissions with FICO scores above 680 starting April 1, except for VA loans, HousingWire reports.
“Effectively meeting the needs of clients in the underserved market requires the ability to both originate quality loans and appropriately service them after the fact,” says Ray Brousseau, executive vice president of Carrington’s mortgage lending division. “Both Carrington’s lending platform and specialty servicing business were created to serve this particular market segment. That uniquely positions us as the lender of choice for this population of borrowers and the mortgage brokers and real estate agents who work with them.”
Source: “Carrington Ups Ante on Wells Fargo by Lowering FICO Standard,” HousingWire (March 24, 2014)
© Copyright 2014 INFORMATION, INC. Bethesda, MD (301) 215-4688
Monday, March 31, 2014
Monday, March 24, 2014
Realtors in Fla. expect prices to rise more than 5%
WASHINGTON – March 24, 2014 – According to the just-released National Association of Realtors®’ (NAR) Realtors Confidence Index, members expect home prices to continue to rise over the next 12 months, but they expect them to do so at a moderate pace given tight credit conditions and lower home affordability.
The Realtors Confidence Index is a monthly survey distributed to more than 50,000 real estate practitioners. It gauges their expectations about home sales, prices and market conditions. Overall, Realtors expect a median price increase of 3.9 percent over the next 12 months.
Florida is one of four states where practitioners predict the biggest increases – 5 to 7 percent – along with California, Alaska and Hawaii. Tight inventories have helped to lift home values in these areas, according to the survey.
“In states with booming economies like Washington, North Dakota, Texas, Michigan, and the D.C.-metro area, the expected price increase is about 3 to 5 percent,” according to the report.
Real estate professionals also expressed several concerns over the housing market holding back some buyers, particularly due to “unreasonably” tight credit conditions.
“Access to credit was often cited as a deterrent to home buying,” the report says. “About 13 percent of Realtors who did not close a sale in February reported having clients who could not obtain financing.” In those cases, about 6 percent of the professionals said their buyer gave up, while 7 percent said their buyer continued to seek new or other financing.
Other transaction hang-ups were lack of agreement on a price (11 percent); buyer losing a home to competition (10 percent); and appraisal issues (3 percent).
The complete survey is available online.
Source: Realtor Magazine Daily News
© 2014 Florida Realtors®
The Realtors Confidence Index is a monthly survey distributed to more than 50,000 real estate practitioners. It gauges their expectations about home sales, prices and market conditions. Overall, Realtors expect a median price increase of 3.9 percent over the next 12 months.
Florida is one of four states where practitioners predict the biggest increases – 5 to 7 percent – along with California, Alaska and Hawaii. Tight inventories have helped to lift home values in these areas, according to the survey.
“In states with booming economies like Washington, North Dakota, Texas, Michigan, and the D.C.-metro area, the expected price increase is about 3 to 5 percent,” according to the report.
Real estate professionals also expressed several concerns over the housing market holding back some buyers, particularly due to “unreasonably” tight credit conditions.
“Access to credit was often cited as a deterrent to home buying,” the report says. “About 13 percent of Realtors who did not close a sale in February reported having clients who could not obtain financing.” In those cases, about 6 percent of the professionals said their buyer gave up, while 7 percent said their buyer continued to seek new or other financing.
Other transaction hang-ups were lack of agreement on a price (11 percent); buyer losing a home to competition (10 percent); and appraisal issues (3 percent).
The complete survey is available online.
Source: Realtor Magazine Daily News
© 2014 Florida Realtors®
Friday, March 21, 2014
South Florida home prices keep rising, but sales growth is slowing - Miami-Dade - MiamiHerald.com
South Florida home prices keep rising, but sales growth is slowing - Miami-Dade - MiamiHerald.com
South Florida home prices keep rising, but sales growth is slowing
The median prices for a single-family home and condo in Miami-Dade and Broward counties rose again in February from a year earlier, but the pace of sales is slowing.
BY MARTHA BRANNIGAN
MBRANNIGAN@MIAMIHERALD.COM
South Florida existing home and condo prices rose again in February from a year earlier, but a slowing pace of sales amid rising inventory signals the housing market is cooling.
In Miami-Dade County, the median price of an existing single-family home rose 17 percent in February from a year earlier to $227,000, and was a hair above January’s level of $225,000, according to the Miami Association of Realtors.
The median price of a Miami-Dade condo rose 7.3 percent to $177,000 in February from a year earlier, but was down 4.8 percent from January.
Single-family home sales in Miami-Dade totaled 860 in February, up 1.3 percent from a year earlier, but down 4.9 percent from January.
Condo sales in Miami-Dade fell 4.1 percent in February from a year ago and were off 7.3 percent from January, as resales face intense competition from the rapidly growing selection of pre-construction condos on the market.
Michael Davalos, office manager of Engel & Völkers in Miami Beach, said some properties have been priced ambitiously high and as a result are sitting on the market without takers.
“Some agents taking on listings drank too much of the Kool-Aid on prices,’’ said Davalos, whose office sees a lot of business in the South Beach and the Brickell/downtown areas. “Prices haven’t come down, but it’s taking longer to find buyers. We overstepped ourselves and prices got over what the market would pay.’’
In Broward County, the median price of a single-family home jumped 12.3 percent to $255,000 in February from a year earlier while the median price for condos and townhouse soared 38.1 percent to $121,500 year over year, according to the Greater Fort Lauderdale Realtors.
Single-family home sales totaled 979 in Broward in February, up one percent from a year earlier, but condo sales fell 5.9 percent year over year with 1,172 closings in February, the Realtors group said.
The slowing pace of existing sales is widely expected to continue this year, despite substantial increases in the selection of homes and condos listed on the market. That is because rising home prices and higher interest rates are making homes less affordable than they have been recently.
Short sales, in which lenders agree to accept less than the mortgage, are down sharply in both Miami-Dade and Broward as the housing landscape continues to mend.
In February in Miami-Dade, listings for existing condos ballooned to 10,723 units. That was a 32.2 percent increase from a year earlier and the highest level in more than two and a half years. Miami-Dade single-family home listings increased 18.3 percent to 6,113 from a year earlier.
The rebound in home prices has helped lift many homes out of negative equity, freeing the owners to sell without the specter of writing a check at closing to satisfy the mortgage obligation.
In Broward, the inventory of single-family homes listed for sale soared 25.2 percent to 5,565 from 4,446 a year earlier. That’s still a relatively tight market, amounting to just 4.5 times the volume of sales completed in a month. Experts generally consider a six-month supply of homes to be a balanced market between buyers and sellers.
The number of Broward condos listed for sale increased 24.7 percent year over year to 7,895 units, Greater Fort Lauderdale Realtors said. That amounted to 5.7 months of supply, compared with 4.6 months a year earlier.
“While additional inventory is creating a more balanced market, the fact that homes continue to sell fast and almost at asking price is still indicative of a seller’s market,” Liza Mendez, chairman of the Miami Realtors and broker/owner of Pedro Realty International in Hialeah, said in a statement.
The moderation in sales in South Florida comes against a backdrop of a bigger slowdown nationally. The National Association of Realtors reported February’s pace of sales, hurt in part by severe winter weather, was the lowest since July 2012.
The nationwide median home price rose 9.1 percent year over year to $189,000. NAR chief economist Lawrence Yun predicted home sales “should trend up modestly over the course of the year.’’
Friday, March 14, 2014
Study suggests 1 in 10 renters wants to buy in 2014
Study suggests 1 in 10 renters wants to buy in 2014
SEATTLE – March 13, 2014 – If a Zillow survey crunched its numbers correctly, the real estate market will see a big upswing in buyer demand over the next year.
According to the inaugural edition of the Zillow Housing Confidence Index (ZHCI), more than 5 percent of all residents in 19 of the 20 large U.S. metro areas want to buy a home in the next year. When the survey focused on just current renters, the number rises to one in 10 (10 percent) hoping to buy a home in the next 12 months.
However, existing headwinds, including tight inventory, rising mortgage interest rates and growing affordability problems in a handful of areas, may make it difficult for many potential buyers to follow through. Still, the majority of respondents were “confident” or “somewhat confident” they could afford homeownership now.
If all renters hoping to buy jumped into the market, it would represent close to 4.2 million first-time home sales – more than double the roughly 2.1 million first-time homebuyers in 2013.
A lack of home inventory may halt some buyers’ aspirations, however. While inventory is up 11.1 percent nationally compared to a year ago, it’s still well below optimal levels. Recent Census Bureau data indicates that the share of new homes built as rental units has grown, while the share of new construction dedicated to single-family homes is down. Mortgage interest rates also continue to rise.
“Even after a wrenching housing recession, this data shows that the dream of homeownership remains very much alive and well, even in those areas that were hardest hit,” says Zillow Chief Economist Dr. Stan Humphries. “But these aspirations must also contend with the current reality, and in many areas, conditions remain difficult for buyers. The market is moving toward more balance between buyers and sellers, but it is a slow and uneven process.”
Pulsenomics created the Zillow Housing Confidence Index. Measured on a 0 to 100 scale, readings above 50 indicating positive sentiment. The overall ZHCI for the U.S. stood at 63.7 at the start of the year. Of the 20 metro areas surveyed, 11 had individual confidence levels higher than the U.S. as a whole. The overall U.S. ZHAI among all households, which measures consumers’ plans to buy and their attitudes toward the social value of homeownership, stood at 62.4.
“While it is reassuring to see all of the headline ZHCIs in positive territory, the underlying indicators … reveal significant variability,” says Pulsenomics Founder Terry Loebs. “Several of these drivers of overall housing confidence registered negative or only marginally positive readings in some cities. These data confirm that real estate recovery and economic healing are relative, local phenomena …”
© 2014 Florida Realtors®
According to the inaugural edition of the Zillow Housing Confidence Index (ZHCI), more than 5 percent of all residents in 19 of the 20 large U.S. metro areas want to buy a home in the next year. When the survey focused on just current renters, the number rises to one in 10 (10 percent) hoping to buy a home in the next 12 months.
However, existing headwinds, including tight inventory, rising mortgage interest rates and growing affordability problems in a handful of areas, may make it difficult for many potential buyers to follow through. Still, the majority of respondents were “confident” or “somewhat confident” they could afford homeownership now.
If all renters hoping to buy jumped into the market, it would represent close to 4.2 million first-time home sales – more than double the roughly 2.1 million first-time homebuyers in 2013.
A lack of home inventory may halt some buyers’ aspirations, however. While inventory is up 11.1 percent nationally compared to a year ago, it’s still well below optimal levels. Recent Census Bureau data indicates that the share of new homes built as rental units has grown, while the share of new construction dedicated to single-family homes is down. Mortgage interest rates also continue to rise.
“Even after a wrenching housing recession, this data shows that the dream of homeownership remains very much alive and well, even in those areas that were hardest hit,” says Zillow Chief Economist Dr. Stan Humphries. “But these aspirations must also contend with the current reality, and in many areas, conditions remain difficult for buyers. The market is moving toward more balance between buyers and sellers, but it is a slow and uneven process.”
Pulsenomics created the Zillow Housing Confidence Index. Measured on a 0 to 100 scale, readings above 50 indicating positive sentiment. The overall ZHCI for the U.S. stood at 63.7 at the start of the year. Of the 20 metro areas surveyed, 11 had individual confidence levels higher than the U.S. as a whole. The overall U.S. ZHAI among all households, which measures consumers’ plans to buy and their attitudes toward the social value of homeownership, stood at 62.4.
“While it is reassuring to see all of the headline ZHCIs in positive territory, the underlying indicators … reveal significant variability,” says Pulsenomics Founder Terry Loebs. “Several of these drivers of overall housing confidence registered negative or only marginally positive readings in some cities. These data confirm that real estate recovery and economic healing are relative, local phenomena …”
© 2014 Florida Realtors®
Friday, March 07, 2014
Coming to America: More People Moved to U.S. from International Locations in 2013 | RISMedia
Coming to America: More People Moved to U.S. from International Locations in 2013 | RISMedia
South Florida Real Estate info at Miami Homes Listings
Call or Click Today!!!!
Thursday, March 06, 2014
CoreLogic: 4M homes achieve positive equity in 2013
IRVINE, Calif. – March 6, 2014 – CoreLogic released new analysis showing that 4 million U.S. homes returned to positive equity in 2013. Overall, 42.7 million mortgage homeowners have equity (86.7 percent); 6.5 million homes (13.3 percent) do not.
Florida ranked second in the number of mortgaged owners who were underwater in 2013. Overall, 28.1 percent of homes with a mortgage were underwater. An additional 3.6% of mortgaged Fla. homes are barely above water.
Due to a small slowdown in the quarterly growth rate of the CoreLogic’s Home Price Index, the negative equity share was virtually unchanged from the third quarter of 2013.
Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both. Borrowers with less than 20-percent equity are referred to as “under-equitied.” Borrowers with less than 5 percent equity are considered “near-negative.”
Under-equitied mortgages accounted for 21.1 percent of all residential properties with a mortgage nationwide in 2013, with more than 1.6 million residential properties at near-negative equity.
“The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgaged homeowners were underwater,” says Mark Fleming, chief economist for CoreLogic. “Over the past four years, more than 5.5 million homeowners have regained equity, reducing their risk of foreclosure and unlocking pent-up supply in the housing market.”
“Stability and growth in the housing market are essential for a durable recovery of the U.S. economy,” adds Anand Nallathambi, president and CEO of CoreLogic. “We still have a long way to go to eliminate the negative equity overhang but significant progress is being made every day across most of the country.”
2013 report highlights
• Nevada had the highest percentage of mortgaged properties in negative equity at 30.4 percent, followed by Florida (28.1 percent), Arizona (21.5 percent), Ohio (19.0 percent) and Illinois (18.7 percent). The top five states accounted for 36.9 percent of negative equity in the United States.
• Of the 25 largest Core Based Statistical Areas (CBSAs) based on population, Orlando-Kissimmee-Sanford, Fla., had the highest percentage of mortgaged properties in negative equity at 31.5 percent, followed by Tampa-St. Petersburg-Clearwater, Fla. (30.4 percent), Phoenix-Mesa-Scottsdale, Ariz. (22.1 percent), Chicago-Naperville-Arlington Heights, Ill. (21.4 percent) and Atlanta-Sandy Springs-Roswell, Ga. (19.9 percent).
• Approximately 3.9 million upside-down borrowers hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $219,000. The average underwater amount is $52,000.
• Approximately 2.6 million upside-down borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $293,000. The average underwater amount is $75,000.
• The bulk of home equity for mortgaged properties is concentrated at the high end of the housing market. For example, 92 percent of homes valued at greater than $200,000 have equity compared with 81 percent of homes valued at less than $200,000.
© 2014 Florida Realtors®
Wednesday, March 05, 2014
Monday, March 03, 2014
Fla. halts sale of conservation land
TALLAHASSEE, Fla. – March 3, 2014 – Falling short of a $50 million goal set by lawmakers, state environmental officials have changed focus and won’t sell pieces of conservation land to help raise money for the Florida Forever program.
The state Department of Environmental Protection now plans to raise money for future Florida Forever purchases by selling sites such as the closed A.G. Holley State Hospital in Lantana and potentially other non-conservation land.
The sale of the hospital site is set to go before Gov. Rick Scott and the state Cabinet on Thursday.
The state agency announced the shift in policy late Friday after six months whittling a list of parcels – from among the state’s inventory of more than 3 million acres of publicly owned conservation land – to determine which could be sold without impacting overall environmentally sensitive sites. The issue became controversial in places such as Polk County, where the state raised the possibility of selling part of an area known as Green Swamp.
“I’m thankful for the efforts of our staff, who conducted many public meetings and sought public comment to make this a transparent process,” said Department of Environmental Protection Secretary Herschel Vinyard in a release. “We will continue to assess our land, determine what should be sold and we are excited about the possibility of selling non-conservation land to fund conservation land purchases to protect our springs, water resources and buffer military bases.”
Manley Fuller, president of the Florida Wildlife Federation, praised the decision that he noted “ended up where it should have been all along.”
“One positive thing that has come out of this is that Floridians care deeply about our conservation lands, and this process has demonstrated clearly is that Florida’s public-conservation lands should remain in public hands for conservation and sustainable nature-based recreation,” Fuller responded in an email.
Department of Environmental Protection spokesman Patrick Gillespie said the new focus will be on selling unused prison, hospital and state buildings.
The first example of the new emphasis is A.G. Holley, a tuberculosis hospital closed by lawmakers in 2012 after six decades in operation.
Southeast Legacy Investments, a land development and construction company, has offered $15.6 million for 80 acres at the hospital site, according to the Cabinet meeting agenda. The sale has been recommended for approval by state staff.
The surplus land-sale program was established by lawmakers in 2013 to add to $20 million they set aside in the budget for future conservation land purchases through the Florida Forever fund. The hope was to raise an additional $50 million for the purchase of land to protect springs, improve water quality and water quantity, or to serve as buffers for military bases.
The initial list of 169 sites, combined for roughly 5,300 acres from state parks and watersheds, drew fire from conservationists for including ecologically important wetlands, submerged lands and space for wildlife habitat.
Shaved down in October to 77 parcels that totaled 3,405 acres, there was still displeasure with the proposed sites.
While most remaining parcels on the list were under 10 acres, the list continued to include the 2,638.3 acres within the Hilochee Wildlife Management Area, known as the Green Swamp Area.
The Polk County Commission asked for Green Swamp to be removed, as the area contains the headwaters of four Florida rivers, including the Hillsborough and Withlacoochee.
As it became apparent the sale of environmental sites would fail to meet the $50 million mark, Sen. Jack Latvala, R-Clearwater, slammed the program in January as a “disaster.”
“This is just a charade that we’re going to sell land and we’re going to use it to buy land and replace a program that was a very popular program (Florida Forever and its predecessor) put in place by Gov. (Bob) Martinez in 1990 and kept going by Gov. (Jeb) Bush,” Latvala said during an appearance by DEP officials before the Senate General Government Appropriations Subcommittee.
In Friday’s release, the DEP noted that the program has “significantly increased” staff’s understanding of the land owned by the state and management issues; “an important factor given that government owns about one-third of all land in Florida.”
Source: News Service of Florida, Jim Turner
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