Fed moves to curb housing abuses

The U.S. central bank recommends new rules to limit compensation for mortgage brokers and clarify risks for borrowers.

July 23, 2009: 11:36 AM ET

WASHINGTON (Reuters) -- The Federal Reserve Board Thursday recommended new disclosure rules for homeowners and compensation guidelines for mortgage brokers to correct some abuses of the recent runaway housing market.

Prospective borrowers would receive a one-page notice of key questions about their loan and see a graph comparing their interest rate to that of a low-risk borrower, the Fed said.

Mortgage brokers would not receive greater compensation if they put a borrower into a high-cost loan, under the rules.

"Consumers need the proper tools to determine whether a particular mortgage loans is appropriate for their circumstances," Fed Chairman Ben Bernanke said during an open meeting of the board.

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Foreclosure listings fall to 5-month low in Central Texas

Postings remain higher than in '08, but drop is welcome, analysts say.

AMERICAN-STATESMAN STAFF
Friday, July 17, 2009

Residential foreclosures for the Aug. 4 auction are at a five-month low in Central Texas, reflecting a trend in other parts of Texas, according to data from Foreclosure Listing Service Inc.

On Thursday, experts cautioned against reading too much into a single month's data, but they said the drop was a welcome break after a steady upward march this year.

"The tide may have changed," said George Roddy Sr., president of Foreclosure Listing Service, who said the figures offer hope that foreclosures postings may have reached a peak.

In Travis, Williamson, Hays and Bastrop counties, 1,072 properties were posted for the August auction, down 27 percent from 1,464 in July.

Postings still were 45 percent higher than they were a year ago. But that is the second-smallest year-over-year percentage increase this year, after a 24 percent jump in February.

In the Dallas area, foreclosures fell below 5,000 for the first time since March, according to Foreclosure Listing Service.

In Bexar County, postings also were at their lowest level since March, according to Real Estate Foreclosures Inc. in San Antonio.

"This looks like a breather or a relative lull in foreclosures that could go on several months," said Greg Stanley, president of Real Estate Foreclosures. "These posting totals are still at a very high level, and talk of being out of the woods is silly, but this is still a nice respite."

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REALTORS® SAY HOUSING INCENTIVES HELP ECONOMY, SMALL BUSINESSES

Washington, July 15, 2009

Having a sound and well-functioning real estate sector is critical to our country’s economic growth and development, as well as the growth and sustainability of many small businesses, according to the National Association of Realtors®.

In testimony on Capitol Hill before the House Committee on Small Business, NAR President Charles McMillan noted that the real estate industry supports millions of jobs and services. “By enacting provisions that stabilize America’s real estate markets, you are helping small businesses and America’s communities thrive and prosper,” said McMillan, a Realtor® and broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth.

NAR shared its belief that the 2009 stimulus legislation has proven helpful to small business owners - which includes many Realtors® - most notably by beginning to stabilize the housing market and stimulate the economy. “Along with other tax bills passed in 2007 and 2008, the 2009 stimulus legislation included a number of provisions that are helping the nation recover,” McMillan said.

The focus of NAR’s testimony was on three provisions that are having a positive impact on the real estate industry - the first-time homebuyer tax credit, the elimination of the mortgage cancellation tax, and the SBA loan programs.

The 2009 stimulus increased the amount of the homebuyer tax credit to $8,000 and eliminated the repayment feature of the credit. It also extended the program up to December 1, 2009. “It appears the tax credit is now being embraced based on the number of inquiries we and our members are receiving and the increased activity in the first-time homebuyer market,” said McMillan.

NAR has asked Congress to take steps to ensure the tax credit continues to stimulate the housing market and help families achieve the dream of homeownership. “We hope Congress will extend the tax credit through next year and make the credit available to all purchasers of primary residences,” McMillan said. “Additionally, to be fair, we’d like the repayment requirement from the 2008 stimulus bill to be eliminated so families are not penalized for buying their home just a few months before the new legislation went into effect.”

The second provision is the Mortgage Cancellation Relief Act passed by Congress in 2007. The tax relief has been extended through 2012, but NAR would like to see this become permanent. “It just doesn’t seem right to further penalize a family that has acted responsibly and has lost their home or been forced into a short sale because of market conditions. Eliminating the tax on the excused debt will help many families begin to recover more quickly and maybe will allow them to once again own a home,” McMillan said.

Lastly, NAR addressed the Small Business Administration loan program that provides fee waivers for some of its SBA programs and new loan programs and raised guarantees. “We applaud these efforts,” McMillan said. “However, the SBA often deems independent contractors, which most Realtors® are, ineligible for its programs and its standards are not always evenly applied across regions.” Realtors® and other independent contractors are often denied access to SBA programs. NAR asked Congress for assistance in making these loans available to more small businesses helping them to grow and prosper.

“NAR thanks you for all of your efforts to date. We stand ready to work with Congress and the Obama administration in any way possible to find further solutions to stabilize the real estate market and restore a strong marketplace and economy,” said McMillan.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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Central Texas home sales showing signs of a pickup

By Shonda Novak| Wednesday, July 1, 2009, 02:43 PM

Central Texas’ new-home builders started nearly 35 percent fewer homes in the second quarter than a year earlier and closed 36 percent fewer sales, new figures show.

However, there are signs the market may be picking up from earlier this year, because builders started 1,861 new homes in the second quarter, up nearly 53 percent from the first three months of 2009, according Residential Strategies Inc., which tracks the housing market.

“The second-quarter period historically marks a time of increased start activity, based on increased buyer traffic and sales during the spring selling season,” said Mark Sprague, the Austin partner with Residential Strategies. “Homebuilders had very few backlog orders to fulfill during the first quarter and no need to begin any speculative construction, but buyer traffic and sales have increased, marking the need for additional starts during the second quarter.”

For the 12 months ending in June, builders closed 8,978 sales, down 32 percent from the 12 months that ended in June 2008.

From The Austin American Statesman

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