Real Estate Agent Bonuses Offered on Freddie Mac REO Sales.

Real Estate Agent Bonuses Offered on Freddie Mac REO Sales

Freddie Mac announced that it is offering $1,000 bonuses to real estate agents representing buyers of one of its HomeSteps REO properties. Listing agents may be eligible for $500.

The agent bonus program applies to 20 states.

To receive the bonus, offers must be received between Nov. 15 and Feb. 28, 2013. Closing must occur on or before April 15, 2013.

Investor purchases, auction sales, and bulk sales are not eligible for the program.

The bonus program, known as HomeSteps Winter Sales Promotion, is to help HomeSteps unload some of its REO inventory, which stood at 50,919 homes at the end of September. About two-thirds of the properties were located in the 20 states taking part in the agent bonus program.

Those states are Alabama, Colorado, Iowa, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, and Wisconsin.

Source: HomeSteps and “Freddie Mac Offers Agent Bonuses on REO Sales,” Inman News (Nov. 15, 2012)

Mortgage Rates Fall into Record-Breaking Territory

Mortgage Rates Fall into Record-Breaking Territory

Mortgage Rates Fall to new all-time lows this week, pushing homebuyer affordability even higher for those who can qualify.

“The Fixed Mortgage Rates Fall to record lows on indicators of higher consumer confidence and wholesale prices,” Frank Nothaft, Freddie Mac’s chief economist says.

The following are the national averages of the Mortgage Rates Fall as reported by Freddie Mac for the week ending Nov. 15:

• 30-year fixed-rate mortgages: averaged a new low of 3.34 percent, with an average 0.7 point. The previous record low was 3.36 percent, set the week of Oct. 4. A year ago, 30-year rates averaged 4 percent.
• 15-year fixed-rate mortgages: averaged a new low of 2.65 percent, with an average 0.7 point. Its previous record low was 2.66 percent, set during the week ending Oct. 18. A year ago, 15-year rates averaged 3.31 percent.
• 5-year adjustable-rate mortgages: averaged 2.74 percent, with an average 0.6 point, rising slightly from last week’s 2.73 percent average. Last year at this time, 5-year ARMs averaged 2.97 percent.
• 1-year ARMs: averaged 2.55 percent, with an average 0.3 point, dropping from last week’s 2.59 percent average. A year ago, 1-year ARMs averaged 2.98 percent.

Source: Freddie Mac

Federal Housing Administration may require bailout money.

Federal Housing Administration may require bailout money

Will the Federal Housing Administration Need a Bailout?

The Federal Housing Administration may require bailout money from the federal government to stay afloat, media outlets are reporting. The FHA insures mortgage lenders against losses.

A high number of mortgage delinquencies is at blame, according to sources.

“The Federal Housing Administration insures nearly 739,000 loans that were 90 days or more past due or in foreclosure at the end of September, an increase of more than 100,000 loans from one year ago,” The Wall Street Journal reports. “That represents around 9.6 percent of its $1.08 trillion in mortgage guarantees.”

The Federal Housing Administration is expected to report later this week that it has run through its reserves and will require a government bailout, The Wall Street Journal reports. If this takes place, it would be the first time that the FHA has ever needed a government bailout.

Regardless, the government would not decide whether to grant Federal Housing Administration a bailout and for how much until February.

Source: “FHA Nears Need for Taxpayer Funds,” The Wall Street Journal (Nov. 14, 2012)

Where Do Home Buyers Look the Most on the Web?

Where Do Home Buyers Look the Most on the Web?

Today’s Home Buyers are no stranger to using the Internet when home shopping. In fact, most Home Buyers find the house they eventually buy first by searching on the Internet, according to buyer surveys.

So where do they turn most frequently for their information?

Home Buyers their local multiple-listing service Web site is the top place home buyers look for homes, according to the National Association of REALTORS(R)’ 2012 survey of home buyers and sellers.

The following are the most popular Web sites used in a home search by Home Buyers, according to the survey:

1. MLS Web site: 54 percent
2. Real estate agent Web site: 51 percent
3. Realtor.com: 47 percent
4. Real estate company Web site: 39 percent
5. Other listing Web sites: 27 percent
6. Search engines: 19 percent
7. Mobile or tablet apps: 13 percent
8. For-sale-by-owner sites: 13 percent

Source: “MLS Most Used Internet Resource for Homebuyers,” Inman News (Nov. 14, 2012)

Fannie and Freddie what’s in store for them?

Fannie and Freddie what’s in store for them?

There were more questions raised than answers provided about the future of government-sponsored enterprises (GSEs) Fannie and Freddie and their continued role in the secondary mortgage market at the Regulatory Issues Forum Friday during the 2012 REALTORS® Conference & Expo in Orlando.

Today, the GSEs have too much market share, said Timothy J. Mayopoulos, Fannie Mae president and CEO, who spoke at the session. However, as he pointed out, “More than four years after the financial crisis, we see little private capital available to meet the demand for single-family housing.”

Lenders are very reluctant to engage in home loans now because of concerns such as potential repurchase requests and regulatory uncertainty. Mayopoulos acknowledged that more transparency is needed around these issues to coax private capital back into mortgage lending.

Mayopoulos and Dr. Wanda DeLeo, deputy director of the FHFA—which currently holds Fannie and Freddie in conservator-ship—and another presenter at the forum, said there’s a broad consensus about what needs to be accomplished over the next few years with respect to the GSEs. A new secondary mortgage market infrastructure needs to be created, the GSEs’ share of the market needs to be reduced, and home owners in distress need to be helped, they explained.

To that last point, Fannie continues to explore new ways to assist borrowers, Mayopoulos said. For instance, to speed up short sales, his organization recently instituted a 60-day deadline for short-sale decisions from lenders. Fannie also waives documentation for hardship in some cases.

However, an agreement on a specific plan for creating a new secondary mortgage market and shrinking the GSEs’ share of home loans has not been reached. Mayopoulos demurred on a question about whether Fannie and Freddie would eventually be phased out and how that might impact mortgage lending.

“We’re in a time when we have to have a debate about what the secondary mortgage market is going to look like, but I’m going to leave that debate to the policymakers,” he said.

Still, whatever happens to Fannie and Freddie and the secondary mortgage market, Mayopoulos expressed a hope that the valuable services those institutions deliver—such as setting standards and making home ownership more accessible for millions of Americans—would be integral to whatever system replaces them.

“This system should not be too big to fail, but it should be big enough to matter,” he said.

—Brian Summerfield, REALTOR® Magazine

Succeed in Commercial Real Estate as a Residential Broker

Succeed in Commercial Real Estate as a Residential Broker

Looking at residential agents breaking into commercial real estate, David J. Murphy, senior vice president of CBRE Inc., sought to dispel the myth that to Succeed in Commercial Real Estate was an intimidating venture. Instead, Murphy insisted that residential agents’ strong sales skills provide enough of a foundation for success, so long as they differentiate within their market, understand their unique niche, and build a strong personal brand. Beyond that, the job requires passion and discipline as well as a mental toughness during those inevitable times when deals fall through.

“You’ve got to be like Mr. Miyagi if you’re going to Succeed in Commercial Real Estate,” Murphy said. “You’ve got to focus.”

According to Murphy’s Nov. 9 presentation at the REALTORS® Conference & Expo in Orlando, Fla., the first step to getting started and to Succeed in Commercial Real Estate is to sell yourself as a promising REALTOR®. Because few companies advertise for commercial real estate professionals, in order to begin your commercial career, you must create your spot within a firm and convince management that you’re worthy of the task.

Once hired, decide on what submarket you will serve — for instance, medical buildings in central Florida — and learn everything about that submarket, or “farming area,” by familiarizing yourself with tenants and cataloging properties.

“People want to work with someone who is ingratiated and who understands the market,” Murphy said.

Murphy suggested taking a drive around the neighborhood to discover properties you might be able to sell. The whole room chuckled when he described his experience as a young broker, pulling up to the back parking lot of countless industrial buildings, and asking workers on their cigarette breaks about the property. “You know that person isn’t going anywhere for the length of that cigarette,” he added, before stressing the importance of developing your own technique in order to find potential sales.

After your first deal has been made, it’s essential to alert prospective clients about your achievement. Murphy suggested hand-signed postcards. “Clients save that stuff,” he explained, “and it’s the little things that will make the difference for you.”

Outlining the noteworthy particulars of a deal — assuming client approval — also allows prospective customers to know that you’re not just a “random facilitator” trying to make a commission but that “you want to sincerely add value,” he said. “If you have the metrics about how you’ve added value, share that with them.”

But this desire to add value is all part of the passion Murphy emphasized as being integral to Succeed in Commercial Real Estate. “This is a brutally tough business,” Murphy said. “It will rip your heart out if you’re not into it.”

— Melissa Kandel, REALTOR® Magazine

Mortgage Delinquencies Reverse Course, Inch Up

Mortgage Delinquencies Reverse Course, Inch Up

More Americans were late on their mortgage payments in September, as the national mortgage delinquency rate rose to its largest increase in four years, according to Lender Processing Services’ September Mortgage Monitor report.

The national mortgage delinquency rate increased 7.7 percent in September from August.

Despite the uptick, mortgage delinquencies are still 30 percent lower than the peak levels reached in January 2010.

The states with the highest “non-current loans” are:

• Florida
• Mississippi
• New Jersey
• Nevada
• Louisiana

The states with the lowest number of non-current loans are:

• Montana
• Alaska
• South Dakota
• Wyoming
• North Dakota

Source: “September Mortgage Delinquencies Higher: LPS,” HousingWire (Nov. 8, 2012)