#Trump / #Clinton #Housing Feud Heats Up

Posted on May 26, 2016 in Uncategorized | Add Your Voice
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May 26, 2016
#Trump/#Clinton #Housing Feud Heats Up
Donald Trump is continuing to get hammered by Hillary Clinton, Senator Elizabeth Warren and other Democrats for his controversial comments about making money off the housing bubble.

hillary_trump.jpegClinton’s campaign released an ad with audio that the presumptive Republican nominee recorded in 2006 for his now-defunct Trump University venture. Trump, a billionaire real estate developer, in remarks on a “bubble burst,” said: “I sort of hope that happens because then people like me would go in and buy” property and “make a lot of money.”

But the Collingwood Group Chairman Tim Rood told Fox Business Network’s Neil Cavuto it’s much ado about nothing:

Watch it here: >>>>>https://youtu.be/ZI1gqro5iXc

Senator Warren, who is a favorite of financial reformers, says Trump’s 2006 comments amounted to rooting for “people to get thrown out on the street.”

“The rest of us were horrified by the 2008 financial crisis,” Warren said in the comments. “But Donald Trump was drooling over the idea of a housing meltdown – because it meant he could buy up a bunch more property on the cheap.”

NYT: Fewer Americans Strike Out for New Jobs, Crimping the Housing Recovery

By covered wagon and jetliner, from East Coast to West, Rust Belt to Sun Belt, Americans’ propensity to be on the move – to new jobs and new places – has historically provided the economy with a critical dose of oomph.go_west_young_man.jpg

But as fewer and fewer Americans are loading up the moving van in search of opportunity, that advantage may be slipping away. In recent years, economists have become increasingly worried that a slide in job turnover and relocation rates is undermining the economy’s dynamism, damping productivity and wages while making it more difficult for sidelined workers to find their way back into the labor force.

“It’s possible that one reason people aren’t changing jobs is because they’ve all found jobs that are great for them and they’re happy,” Betsey Stevenson, an economist at the University of Michigan and a former member of President Obama’s Council of Economic Advisers, said. “But the other possibility is that people stay in jobs that aren’t as good for them because they’re terrified of changing, and that’s bad for the overall economy.”

Staying put can mean that workers are not moving to jobs where they would be more productive. At the same time, many are forgoing the raises and ascents on the career ladder that often come with a job switch. Fewer openings can also have a ripple effect, shrinking the bargaining power of workers in general, making it tougher to ask for a bump up in pay.

“It also stinks if you lose your job,” Ms. Stevenson said of reduced turnover. “It’s like a game of musical chairs where only half the people get up.”

read more: http://www.nytimes.com/2016/05/25/business/economy/fewer-workers-choose-to-move-to-new-pastures.html?smprod=nytcore-ipad&smid=nytcore-ipad-share&_r=0

National Mortgage News: Mortgage for Millennials with High Student Debt

The extent to which student debt is keeping Millennials from buying homes is debatable. But for high-earning young professionals who are saddled with such loans, a Florida investment advisor says he has devised a path to homeownership.

In the next six to eight weeks, John Burkey will launch the BurkeyLoan, which combines borrowers’ student loans and their mortgages.

“Basically,” he said, “they will be refinancing their school loans into their mortgages.”

Initially, BurkeyLoans will be aimed at college graduates with “top-tier work and academic profiles” who seek jumbo mortgages in the $425,000 to $600,000 range. But by year’s end, Burkey said, the new mortgage product should become available for those needing financing for houses in the high $200,000s.

read more: http://www.nationalmortgagenews.com/news/origination/a-mortgage-for-millennials-with-big-student-debts-1078714-1.html

NerdWallet: Millennials and Homebuying: Myths and Reality

A common narrative in our age is that millennials are breaking with the habits of their parents and grandparents when it comes to homebuying. Millennials, the story goes, are renting longer, living with their parents, and are saddled with student loan debt. In short, it would seem they aren’t interested in homeownership.

But a new NerdWallet analysis that examined a number of surveys and data from government agencies and private organizations found many of these perceptions to be false. Our research showed that a majority of millennials would prefer owning to renting, but they appear to be postponing homeownership because of real and perceived difficulties in affording it. In fact, our analysis found that millennials, those born from 1981 to 1997, look upon owning a home just as favorably as previous generations.millennial-housing-1.jpeg

  • U.S. millennials total 66 million individuals and 24 million independent households [1].
  • The median age for first-time homebuyers has remained virtually unchanged for the past 40 years: In 2015 it was 31 years old, compared with 30.6 in 1970-74 [2].
  • Two-thirds of millennials haven’t reached that homebuying age of 31, and 22% are under 25 years old [3].
  • Millennials are renting for a median of six years before buying, compared with a median of five years for renters in 1980 [4].
  • Millennials are expected to form 20 million new households by 2025 [5].
  • The median income for a millennial older than 25 is $38,220 [6].

read more: https://www.nerdwallet.com/blog/mortgages/millennials-and-homebuying/?sf26518265=1

Bloomberg: Why Lease When You Can Own? Rooftop Solar Facing Tough Question

It’s tough to argue with free. That’s why the no-money-down solar lease became the most popular choice for U.S. rooftop power.

Now, though, the equation is changing. Falling costs are making it easier for consumers to buy solar systems outright, and banks and solar installers are promoting loans with no upfront payments. That’s a threat to companies such as SolarCity Corp., Sunrun Inc. and Vivint Solar Inc., which built their businesses on people signing decades-long contracts.

Workers secure solar panels to a rooftop during a SolarCity Corp. residential installation.

Workers secure solar panels to a rooftop during a SolarCity Corp. residential installation. Photographer: Sergio Flores/Bloomberg

Installation growth is slowing for the big three U.S. rooftop solar installers, and GTM Research, an industry consultant, is forecasting the percentage of consumers buying rather than leasing residential systems will expand to 45 percent this year, from 38 percent in 2014. Shares in all three companies have plunged more than 40 percent this year, for a variety of reasons including a failed acquisition bid for Vivint and questions about SolarCity’s strategy.

“Leasing was the major game but that’s changing quickly,” said Patrick Jobin, an analyst at Credit Suisse Group AG. “Consumers are starting to realize there are better options.”

read more: http://www.bloomberg.com/news/articles/2016-05-24/why-lease-when-you-can-own-the-tough-question-facing-solarcity

WSJ: Wells Fargo Offers Low Downpayment Loan with FHA Backing

Wells Fargo iss rolling out a new mortgage for borrowers making minimal down payments, an offering that could allow the bank to step back significantly from a controversial Federal Housing Administration program.

The move comes as most of the country’s main banks exit from any substantial role making loans guaranteed by the FHA. The agency insures mortgages made to buyers who would otherwise have a hard time getting loans, but it has been shunned by banks following a wave of lawsuits by the Justice Department that alleged poor underwriting.

Wells Fargo, which made $6.3 billion in FHA-backed loans last year, is the only mainstream bank in the FHA’s top 20 originators, according to trade publication Inside Mortgage Finance.

​The bank’s new mortgage allows borrowers​with credit scores​as low as 620 on a scale of 300 to 850​to make down payments of as little as 3%, while also allowing them to use income from family members or renters to qualify. The requirements don’t represent a significant expansion of mortgage access, but will allow Wells Fargo to make more loans to low- and middle-income borrowers without going through the​FHA.

The bank’s new program, which was launched through a partnership with mortgage-finance giant Fannie Mae, could replace about of half the bank’s current FHA volume and increase its market share, a person familiar with the matter said.

read more: http://www.wsj.com/articles/wells-fargo-to-offer-low-down-payment-mortgages-without-fha-backing-1464235261

Inside Mortgage Finance: Wells Fargo Fined $70 Million for Servicing Issues

The Office of the Comptroller of the Currency on Wednesday assessed a $70.0 million civil money penalty against Wells Fargo for violations of a consent order issued back in 2011. But the fine accompanied the termination of the consent order and the end of servicing-related restrictions Wells has been under since June 2015.

The OCC said the civil money penalty against Wells was due to violations of the consent order as recently as 2015 and a failure to correct deficiencies in a timely fashion. In June 2015, the OCC amended its servicing-related consent orders with Wells and five other banks, placing a number of restrictions on servicing activities due to their failures to meet requirements under the consent orders.

Since then, Wells has faced restrictions regarding acquisitions of servicing, mortgage servicing rights and origination business entities. The company also was required to receive approval from the OCC before completing certain servicing-related activities.

read more: http://www.insidemortgagefinance.com/imfnews/1_861/daily/occ-fines-wells-fargo-but-releases-it-from-servicing-order-1000036866-1.html?ET=imfpubs:e7797:63041a:&st=email&s=imfnews

Ocwen Off the Hook in MBS Fight

It was just over a year ago when a group of heavyweight investors accused Ocwen Financial of a laundry list of violations of its servicing obligations on $82B of home loans.

A yearlong independent investigation initiated by Wells Fargo – the deals’ master servicer – and carried out by Duff & Phelps, found no evidence any of the accusations carry any weight.  Ocwen claimed all along that the investors were unhappy with its efforts to modify loan terms in order to keep people in their homes, and instead wanted foreclosures rushed through despite the restrictions Ocwen is under from a number of regulators.

From the Duff & Phelps report: No evidence Ocwen failed to account for P&I payments, no evidence Ocwen charged the Master Serviced Trusts for any undisclosed expenses, no evidence Ocwen engaged in modifications in oder to prematurely recover advances, no evidence to conclude generally that Ocwen made extreme and imprudent modifications.There’s no premarket action on this good news, but the stock did pop about 10%.

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When the media needs an EXPERT it turns to The Collingwood Group, Shouldn’t Your Business?
Managing Director, Tom Booker, dissected April’s existing home sales for Fox Business Network’s Neil Cavuto. Booker says despite the good number there may be big trouble ahead.

Mortgage rates are at three-year lows, but due to increased regulations they are difficult to get, especially for millennials and other first-time homebuyers.Collingwood Senior Vice President, Eric Chader, discussedmortgage-rates and more on the Jim Bohannon Show on the nationwide Westwood Radio Network

MReport: How Will the Presidential Election Affect Housing?

m_report.jpegAs the 58th presidential election draw closer, many in the mortgage industry are wondering who will win and how the new president will impact housing.

….Vice Chairman of The Collingwood Group, Brian Montgomery, sat down with MReport to provide his take on the how the presidency will affect housing, particularity if Republican nominee Donald J. Trump or Democratic candidate Sen. Bernie Sanders (I-Vermont) wins the election.

“I don’t disagree with the report. However, I was taken aback by the extra negativity toward Trump, and I began to wonder how they came to that conclusion,” Montgomery stated. “I think the problem with Trump is that it is still unknown what he would do for housing. I think that’s where the hesitation comes in. There is uncertainty in the unknown. There is a little of the unknown among all the candidates.”

read more: http://www.themreport.com/news/government/05-18-2016/will-presidential-election-affect-housing

Freddie’s 1Q Loss at Odds with Its Risk-Sharing Gains

nationalmortgage_news.jpegFreddie Mac’s burgeoning efforts to offload credit exposure to private investors through its innovative risk-sharing transactions highlight a growing tension between its financial results and regulatory risk management goals.

…..And in the absence of new efforts at GSE reform, current plans call for Fannie and Freddie to shrink their portfolios to the point where they have a zero net worth in 2018, leaving no buffer against losses, notes Tim Rood, chairman of The Collingwood Groupand a former Fannie Mae executive.

“Each year the can is kicked down the road, the situation becomes more dire,” he said.

read more: http://www.nationalmortgagenews.com/news/secondary/freddies-1q-loss-at-odds-with-its-risk-sharing-gains-1077235-1.html

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CNBC: Homebuying, Not Refinancing, Drives Mortgage Applications Up

Slightly higher mortgage rates did not deter homebuyers looking for a loan last week.

Total mortgage application volume increased 2.3 percent on a seasonally adjusted basis for the week compared to the previous week. Applications are now nearly 24 percent higher than one year ago, according to a weekly survey by the Mortgage Bankers Association.

Mortgage applications to purchase a home drove total volume, rising 5 percent for the week, seasonally adjusted, and 17 percent compared with the same week one year ago. Purchase volume had been weakening, despite the fact that spring is historically the busiest season for homebuying.

“Purchase applications got back on track last week, resuming the level of activity observed throughout most of April and May,” said Lynn Fisher, MBA vice president of research and economics.

Applications to refinance a mortgage were basically flat for the week, up just 0.4 percent. These are more interest-rate sensitive, and rates have moved off the three-year lows of a few weeks ago.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.85 percent from 3.82 percent, with points increasing to 0.37 from 0.34 (including the origination fee) for 80 percent loan-to-value ratio loans, according to the MBA’s weekly survey.

read more: http://www.cnbc.com/2016/05/25/homebuying-not-refinancing-drove-mortgage-applications-up.html

MarketWatch: Seattle Home Prices Surge

The inventory of homes for sale has finally begun increasing a bit in the Seattle real estate market. In King County, the supply of available homes has been at less than two months for nearly two years. For most of 2016, inventory has hovered around one month’s supply.

In April we saw residential real estate inventory bump up from 1.1 months to 1.3. That 18% gain is nothing to dismiss, but it’s one drop in a very large bucket that needs to be filled to give home buyers some breathing room. It’s not enough to satiate the local population hoping to purchase a home, let alone the influx of tech workers moving to the Seattle region. Amazon, Facebook, Google, Nintendo, Microsoft and many others are in a talent-spending competition that rivals any tech hub nationally.

read more: http://www.marketwatch.com/story/seattle-home-prices-surge-more-than-10-as-supply-struggles-to-meet-demand-2016-05-25

Another Reason Not to ‘Friend’ Zuck

Mark Zuckerberg is tearing down the four homes that surround his $7 million Silicon Valley mansion and building what looks like a high-security stealth compound.

Papers submitted to the planning department in Palo Alto, Calif., show that the four neighboring houses — scooped up by the Facebook boss in a string of deals totaling nearly $44 million — will be razed and replaced by houses that are 20 percent smaller and mostly single-story.

The New York Post reports indeed, one home looks like a possible security bunker, with “white brick walls, dark steel doors and windows, dark grey siding and louvers where they occur above the roof line, and a dark gray standing seam metal roof,” according to the plans.

The other three will be built with “a simple palette of painted wood shingle siding, natural cedar shake roofing, painted windows and french doors, and stained wood doors where they are solid.”

The new homes are shrinking after Facebook’s 32-year-old CEO was forced to fend off a developer who threatened to build a house behind his that would have been tall enough to get a view into Zuckerberg’s bedroom window.

In 2012, Zuckerberg started buying up neighbors’ houses at inflated prices. They’ve all been mostly vacant for more than a year, although there have been local news reports of unidentified occupants.

Having weathered an attempted shakedown, Zuckerberg isn’t expected to surrender control of the new homes. Instead, insiders speculate he might use them for family and friends, Facebook employees — and a sizable security detail.

Coming Up

TODAY

-Pending Home Sales Index 10:00 AM ET

Ten-X CRE Nowcast 9:00 AM ET

FRIDAY

-Consumer Sentiment Index 10:00 AM ET

-Fed Chief Janet Yellen speaks 10:30 AM ET

-LEAVE THE OFFICE EARLY FOR MEMORIAL DAY WEEKEND!

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