Despite slow job growth, Americans’ attitudes about homeownership, the economy, and personal finances continue to move incrementally in a positive direction, according to results from Fannie Mae’s April 2012 National Housing Survey. The continued stabilization of consumer attitudes coupled with growth in areas such as home price expectations, whether it is a good time to sell one’s home, direction of the economy, and the percentage of Americans who saw an increase in their personal income indicate an alignment of factors that may influence Americans’ decision making about purchasing a home.
On average, Americans expect home prices to increase 1.3 percent over the next 12 months (the highest value yet recorded), while the percentage of Americans who say it is a good time to sell their home continued to rise to 15 percent in April (up from low, flat levels during 2011). In turn, confidence in the economy’s direction rose to a survey all-time high in April (hitting 37 percent, an increase of 2 percentage points from last month). Another positive trend is the increased share of those who reported their income as “significantly higher” from twelve months ago, which is now at the highest level recorded over the past year and 7 percentage points higher than those who reported income as “significantly lower” (the largest difference between the two since the survey began).
http://www2.realtoractioncenter.com/site/R?i=OL-Rp9YSsbVK9v08mJ8Qlw
CNNMoney
The Federal Housing Finance Agency will decide this month whether Fannie Mae and Freddie Mac should allow write downs on the balances of borrowers who owe more than their homes are worth.
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http://money.cnn.com/2012/04/09/news/economy/mortgages-principal-reduction/index.htm?iid=HP_LN
The Wall Street Journal
A report by the Inspector General for the Federal Housing Finance Agency says that the FHFA hasn’t done enough to oversee mortgage-servicing companies used by Fannie Mae and Freddie Mac to collect payments on home loans despite widespread attention to problems in the industry.
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http://blogs.wsj.com/developments/2012/03/07/report-criticizes-housing-regulator-on-mortgage-servicing/
The Federal Housing Finance Agency (FHFA) has targeted Los Angeles as one of the hardest-hit areas for inclusion in its Real Estate-Owned (REO) Initiative pilot program.
Under the pilot plan, institutional investors will be able to purchase large blocks of Fannie Mae- and Freddie Mac-owned foreclosed properties in bulk with the requirement to rent the purchased properties for a specified period of time.
While the program may be beneficial in some parts of the country where REO inventory is high, it would not be favorable in California, where housing inventory is extremely low and demand is high, even in the state’s hardest-hit areas. REOs in California are getting multiple offers at top dollar and usually closing within 60 days on average.
C.A.R.’s Leadership Team is meeting with California Congressional members, the FHFA, and FHA in Washington, D.C., this week to voice its concern with this issue and to determine how C.A.R. can assist the housing regulators in the disposition of REOs.
See C.A.R.’s letter to California Congressional members voicing its concerns over the plan.
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The Wall Street Journal
The Federal Housing Administration will exhaust its reserves over the coming year, according to budget projections released Monday, which would require a Treasury infusion for the first time in its 78-year history.
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http://online.wsj.com/article/SB10001424052970204795304577221222265037002.html?mod=WSJ_RealEstate_LeftTopNews
