Mortgage Lenders, New Home Sales and Appraisers

Mortgage Bankers Headed To White House
July 27, 2009

Mortgage servicers have been the target of massive criticism of late for not doing enough to help navigate the foreclosure crisis. With the Obama administration’s credibility on the line, much of the criticism has been initiated from Washington. Now, the two sides will meet, although details of the meeting are not expected to be revealed immediately. Lawmakers are concerned that banks have failed to follow Home Affordable Modification Program guidelines.

Kentucky Takeaway: Particularly for Kentuckians who may be going through the foreclosure process presently, this could be an important meeting that facilitates better implementation of federal programs. Whatever the case, the programs will not have a chance to gain traction without improved communication.
http://abcnews.go.com/Business/story?id=8166551&page= 1


New Home Sales Rise
July 27, 2009

Purchasing of new homes in the United States jumped 11% in June, the largest such increase in eight long years. Those who are looking for evidence that the market is stabilizing are pleased with the report, as perhaps unemployment’s impact on the market will not stunt the recovery as much as expected.

Kentucky Takeaway: Stabilization may still have a ways to go, but the good news for Kentuckians is that the news has not been as catastrophic in the past couple of years as it has been for other retirement and vacation states.
http://www.bloomberg.com/apps/news?pid=20601087&sid=apBd3fzIWMiw


Cash Talks In Buyer’s Market
July 26, 2009

Lee County, FL has been one of the hardest hit counties in the country during the real estate crash. What that has meant has been different things to different people. While home values have declined and many people have lost their properties, the cash-wielding investors have stepped in to grab bargains in droves. The local government has received stimulus money to help stabilize the market and prevent blight, so the upside for investors is intriguing.

Kentucky Takeaway: Though investors may not be flocking to the Commonwealth in the same way they are to the crash states, there remains a good bit of competition for the best foreclosure deals in the most desirable areas. It takes cash and experience to out-maneuver the sharks, so the inexperienced investors should proceed with caution.
http://www.news-press.com/article/20090726/OPINION/90725023/1015


Balloons Could Pop Real Estate Market
July 26, 2009

In the near future, millions of adjustable-rate mortgages will reset, causing what some analysts fear will be another giant wave of foreclosures. With the national delinquency and foreclosure rate the highest it has been since records have been recorded (1972) those with Alt-A mortgages are at severe risk for future foreclosure. Combine that with the rise in unemployment and the backlog of foreclosures that have not cleared the court systems and the picture could get ugly.

Kentucky Takeaway: Kentuckians with adjustable-rate mortgages are expected to struggle when their rates reset. The best news would be renewed stability in the market and reduced unemployment across the state—both of which could help mitigate the problem.
http://www.bradenton.com/847/story/1599707.html?storylink=omni_popular


CPI & Others Report on Appraisers
July 26, 2009

The Center for Public Integrity issued a report recently blasting some former appraisers who now have become crooked real estate agents or unregulated appraisers. Furthermore, those left in the industry following the recent regulations are taking heat from Realtors and home builders for lower than desired home evaluations. Some evidence suggests that the Home Valuation Code of Conduct is driving off the most qualified appraisers.

Kentucky Takeaway: With fewer booms and busts in Kentucky communities over the past decade, the appraisal debate is having a subtler influence. That said, Kentucky has not been immune to the ups and downs, and obtaining an accurate appraisal is as important as ever.
http://moneyfeatures.blogs.money.cnn.com/2009/07/26/real-estate-appraisers-take-it-on-the-chin/