BOA short sale program to expand?
Bank of America's (BOA) cash-back incentive, which tempted
delinquent borrowers to do a short sale over a lengthy
foreclosure, ended Dec. 12 with mixed reviews. The Florida-only
program offered between $5,000 and $20,000 in relocation expenses
to qualified homeowners who agreed to vacate their homes through
a short sale in lieu of the average two-year foreclosure process.
But as of early December, only about 3,000 homeowners of 20,000
solicited by the bank had expressed interest in the plan, which
one real estate consultant said was unthinkable before the
robo-signing scandal heightened the foreclosure chaos. "A year
ago, banks weren't making offers like this. Now, it's a complete
reversal in that they are proactively soliciting short sales,"
said Jack McCabe, chief executive of McCabe Research & Consulting
in Deerfield Beach. "They are offering unbelievable deals."
Realtors say banks, including Wells Fargo and JPMorgan Chase,
began offering cash incentives about six months ago to homeowners
who agree to do short sales. With foreclosures taking an average
of 749 days in Florida, according to a November RealtyTrac
report, it's cheaper to pay off an owner than take them to court,
Realtors say. BOA spokeswoman Jumana Bauwens said she couldn't
comment on concerns unless they dealt with a specific case, but
that the company was "pleased" with the homeowner response.
Bauwens said Florida was chosen to test the program because of
its high number of foreclosures. If it's ultimately deemed
successful, it could be expanded to other states. To qualify,
homeowners had to submit their short sales for approval by Dec.
12 - an extended deadline from an original Nov. 30 date. The
homes could not have offers on them already, and the closing
needed to occur before Aug. 31.
Ford hits 2 million mark in 2011
The Ford brand passed the 2-million mark, said Erich Merkle, Ford
US sales analyst. Ford's small cars sales posted an increase of
more than 20% this year, while its utility vehicles hit a
30-percent gain, the company said. Overall, including its
Lincoln luxury brand and now-defunct Mercury brand, Ford company
sales were up about 11% through November, and the Ford brand's
sales were up about 18%. As gasoline prices rose in 2011,
customers continued to move toward smaller, more fuel-efficient
vehicles. In recent years, Ford has emphasized fuel efficiency,
including adding its "EcoBoost" engines that include
turbocharging and fewer cylinders, particularly on utility
vehicles and pickup trucks. US auto sales in December are
expected to top 13 million on an annual rate, J.D. Power and
Associates and LMC Automotive said. Once again, as it has each
year for more than three decades, the Ford F-Series pickup trucks
are the best-selling vehicle in the US market. Through November,
Ford sold 516,639 F-Series pickup trucks, according to Autodata.
Olick - housing's new hope
"I'm not sure if it's that usual New Year's Eve optimism evoked
by the generic philosophy that the grass is always greener on the
other side of the calendar year, or perhaps the emotional need to
dig ourselves out of what has surely been one of the more
lugubrious periods in the US economy, but there is some hope in
housing. A few positive readings in home sales and housing
starts recently, topped off by today's 7.4% monthly jump in
contracts to buy existing homes, are fueling what I dare say is a
spark, albeit not a fire. They are also managing to trump what
was a particularly opposing reading in home prices from the
number crunchers at S&P/Case-Shiller this week. Don't worry, I'm
not going to dump a bunch of coal on the numbers and claim
they're all spurious in some way; I'm all prepared to be
munificent, while chary (did I mention my new year's resolution
is to improve my family's vocabulary, as well as banish 'like'
from my kids' lexicon.) I will note that even the Realtors, while
touting affordability and pent-up demand, note that many of these
new signed contracts are the result of delayed transactions.
'Contract failures have been running unusually high,' notes
National Association of Realtors chief economist Lawrence Yun.
'Some of the increase in pending home sales appears to be from
buyers recommitting after an initial contract ran into problems,
often with the mortgage,' he said.
Then there is a big story in the Wall Street Journal [on Friday]
of hedge funds putting their money back in housing, suggesting
that while the numbers aren't all there for a big win, these
funds are usually ahead of big market shifts, so the housing
surge must be on its way. I've spoken to some of these hedge fund
types as well, and they seem to be playing on the surging rental
market for now, getting the bargains but not expecting any big
'flipping' returns any time soon. 'Bottom line, whether due to
even lower prices, historically low mortgage rates, falling
inventory and a better tone to the labor market or a combination
of all, the housing market is showing signs of stabilizing,' says
Peter Boockvar at Miller Tabak. 'I say stabilize instead of
bottom, as its too early to make that claim just yet with still a
huge amount of foreclosures that hasn't worked its way through
the judicial system and prices that haven't likely stopped going
down as a result.' Some are predicting that foreclosures will
push home prices down another five to ten% before hitting a true
bottom.
In addition, those rock-bottom mortgage rates that everyone is
touting this week may be heading up, as the conservator of Fannie
Mae and Freddie Mac today directed the two mortgage behemoths to
inform servicers that guarantee fees would rise ten basis points
next week. That, if you recall, is to pay for the temporary
extension of the payroll tax cut. Yep, that money heads to the US
Treasury, not to the troubled balance sheets of Fannie and
Freddie. This accused nostrum will likely raise rates a tad, but
rates are still close to historical lows. And we should remember
that. It's all relative. Are things getting a bit better?
Probably. I heard (or read…can't remember) someone today say
that housing has gone from a negative to a nothing for the US
economy. So when we tout and rave about today's pending home
sales numbers, we mustn't forget where we've been: 'It’s not
going to keep 2011 from being the worst on record for new home
sales, for single family permits and single family housing
starts. Next year is going to be better, but that’s not saying
much because this has been the worst year, probably since 1945,'
said IHS Global Insight's Patrick Newport. In other words,
housing ain't exactly fecund, but it's at least inching off life
support."
Employers offer weird benefits
Pet insurance, at-your-desk meditation services, jewelry
discounts and funeral planning — from the quirky to the somber,
workplaces are providing a range of unique benefits in 2012. The
options come as many firms try to placate employees frustrated by
pay cuts, heavy workloads, high health insurance costs and
reduced 401(k) matches. "Companies are trying to have it feel
like it's not one big take-away," said John Bremen, a managing
director at employer consultancy Towers Watson. "They are trying
to find ways to appeal to the workforce." Many voluntary
benefits — such as reduced-price computers and pet insurance
due to group-buying discounts — won't gouge a corporate budget.
"On the employer side, there's a recognition that they can't
always add to the benefits program in a way they have in the
past," said Ronald Leopold, national medical director at MetLife.
"But they want to offer employees different things and a broader
set of (choices)."
Among the many options offered: free tickets to theme parks,
cellphone plan discounts and at-work massages. Benefits at drug
manufacturer Allergan include adoption assistance and auto
insurance discounts. It also has a free concierge service for
workers to acquire theater tickets, drop off laundry and get
restaurant reservations. Firms such as S.C. Johnson, TD Bank and
Travelocity provide discounted health coverage for workers' pets
through Petplan Pet Insurance. Petplan "has seen tremendous
growth in this area of voluntary benefits," co-CEO Chris Ashton
said. "In this struggling economy, employers are increasingly
looking for low-cost options to keep their employees happy."
WSJ - 2011 ends with near record mortgage rate lows
Average fixed mortgage rates in the US over the past week
finished the year near all-time lows, with the 30-year home loan
at 3.95%. According Freddie Mac's weekly survey of mortgage
rates, the rate for a 30-year fixed-rate mortgage has been at or
below 4% for the past nine consecutive weeks and only twice in
2011 did it average above 5%. The 30-year fixed-rate mortgage
averaged 3.95% for the week ended Thursday, up from 3.91% the
previous week and below 4.86% a year ago. Rates on 15-year
fixed-rate mortgages averaged 3.24%, up from 3.21% last week and
below 4.20% a year earlier. Five-year Treasury-indexed hybrid
adjustable-rate mortgages, or ARM, averaged 2.88%, up from 2.85%
yet below 3.77% of a year ago. One-year Treasury-indexed ARM
rates averaged 2.78%, up from 2.77% in the prior week and below
3.26% last year. To obtain the rates, 30-year and 15-year
fixed-rate mortgages required payments of 0.7 percentage point
and 0.8 percentage point, respectively. Five-year and one-year
adjustable rate mortgages required an average payment of 0.6
percentage point. A point is 1% of the mortgage amount, charged
as prepaid interest
Bank of America's (BOA) cash-back incentive, which tempted
delinquent borrowers to do a short sale over a lengthy
foreclosure, ended Dec. 12 with mixed reviews. The Florida-only
program offered between $5,000 and $20,000 in relocation expenses
to qualified homeowners who agreed to vacate their homes through
a short sale in lieu of the average two-year foreclosure process.
But as of early December, only about 3,000 homeowners of 20,000
solicited by the bank had expressed interest in the plan, which
one real estate consultant said was unthinkable before the
robo-signing scandal heightened the foreclosure chaos. "A year
ago, banks weren't making offers like this. Now, it's a complete
reversal in that they are proactively soliciting short sales,"
said Jack McCabe, chief executive of McCabe Research & Consulting
in Deerfield Beach. "They are offering unbelievable deals."
Realtors say banks, including Wells Fargo and JPMorgan Chase,
began offering cash incentives about six months ago to homeowners
who agree to do short sales. With foreclosures taking an average
of 749 days in Florida, according to a November RealtyTrac
report, it's cheaper to pay off an owner than take them to court,
Realtors say. BOA spokeswoman Jumana Bauwens said she couldn't
comment on concerns unless they dealt with a specific case, but
that the company was "pleased" with the homeowner response.
Bauwens said Florida was chosen to test the program because of
its high number of foreclosures. If it's ultimately deemed
successful, it could be expanded to other states. To qualify,
homeowners had to submit their short sales for approval by Dec.
12 - an extended deadline from an original Nov. 30 date. The
homes could not have offers on them already, and the closing
needed to occur before Aug. 31.
Ford hits 2 million mark in 2011
The Ford brand passed the 2-million mark, said Erich Merkle, Ford
US sales analyst. Ford's small cars sales posted an increase of
more than 20% this year, while its utility vehicles hit a
30-percent gain, the company said. Overall, including its
Lincoln luxury brand and now-defunct Mercury brand, Ford company
sales were up about 11% through November, and the Ford brand's
sales were up about 18%. As gasoline prices rose in 2011,
customers continued to move toward smaller, more fuel-efficient
vehicles. In recent years, Ford has emphasized fuel efficiency,
including adding its "EcoBoost" engines that include
turbocharging and fewer cylinders, particularly on utility
vehicles and pickup trucks. US auto sales in December are
expected to top 13 million on an annual rate, J.D. Power and
Associates and LMC Automotive said. Once again, as it has each
year for more than three decades, the Ford F-Series pickup trucks
are the best-selling vehicle in the US market. Through November,
Ford sold 516,639 F-Series pickup trucks, according to Autodata.
Olick - housing's new hope
"I'm not sure if it's that usual New Year's Eve optimism evoked
by the generic philosophy that the grass is always greener on the
other side of the calendar year, or perhaps the emotional need to
dig ourselves out of what has surely been one of the more
lugubrious periods in the US economy, but there is some hope in
housing. A few positive readings in home sales and housing
starts recently, topped off by today's 7.4% monthly jump in
contracts to buy existing homes, are fueling what I dare say is a
spark, albeit not a fire. They are also managing to trump what
was a particularly opposing reading in home prices from the
number crunchers at S&P/Case-Shiller this week. Don't worry, I'm
not going to dump a bunch of coal on the numbers and claim
they're all spurious in some way; I'm all prepared to be
munificent, while chary (did I mention my new year's resolution
is to improve my family's vocabulary, as well as banish 'like'
from my kids' lexicon.) I will note that even the Realtors, while
touting affordability and pent-up demand, note that many of these
new signed contracts are the result of delayed transactions.
'Contract failures have been running unusually high,' notes
National Association of Realtors chief economist Lawrence Yun.
'Some of the increase in pending home sales appears to be from
buyers recommitting after an initial contract ran into problems,
often with the mortgage,' he said.
Then there is a big story in the Wall Street Journal [on Friday]
of hedge funds putting their money back in housing, suggesting
that while the numbers aren't all there for a big win, these
funds are usually ahead of big market shifts, so the housing
surge must be on its way. I've spoken to some of these hedge fund
types as well, and they seem to be playing on the surging rental
market for now, getting the bargains but not expecting any big
'flipping' returns any time soon. 'Bottom line, whether due to
even lower prices, historically low mortgage rates, falling
inventory and a better tone to the labor market or a combination
of all, the housing market is showing signs of stabilizing,' says
Peter Boockvar at Miller Tabak. 'I say stabilize instead of
bottom, as its too early to make that claim just yet with still a
huge amount of foreclosures that hasn't worked its way through
the judicial system and prices that haven't likely stopped going
down as a result.' Some are predicting that foreclosures will
push home prices down another five to ten% before hitting a true
bottom.
In addition, those rock-bottom mortgage rates that everyone is
touting this week may be heading up, as the conservator of Fannie
Mae and Freddie Mac today directed the two mortgage behemoths to
inform servicers that guarantee fees would rise ten basis points
next week. That, if you recall, is to pay for the temporary
extension of the payroll tax cut. Yep, that money heads to the US
Treasury, not to the troubled balance sheets of Fannie and
Freddie. This accused nostrum will likely raise rates a tad, but
rates are still close to historical lows. And we should remember
that. It's all relative. Are things getting a bit better?
Probably. I heard (or read…can't remember) someone today say
that housing has gone from a negative to a nothing for the US
economy. So when we tout and rave about today's pending home
sales numbers, we mustn't forget where we've been: 'It’s not
going to keep 2011 from being the worst on record for new home
sales, for single family permits and single family housing
starts. Next year is going to be better, but that’s not saying
much because this has been the worst year, probably since 1945,'
said IHS Global Insight's Patrick Newport. In other words,
housing ain't exactly fecund, but it's at least inching off life
support."
Employers offer weird benefits
Pet insurance, at-your-desk meditation services, jewelry
discounts and funeral planning — from the quirky to the somber,
workplaces are providing a range of unique benefits in 2012. The
options come as many firms try to placate employees frustrated by
pay cuts, heavy workloads, high health insurance costs and
reduced 401(k) matches. "Companies are trying to have it feel
like it's not one big take-away," said John Bremen, a managing
director at employer consultancy Towers Watson. "They are trying
to find ways to appeal to the workforce." Many voluntary
benefits — such as reduced-price computers and pet insurance
due to group-buying discounts — won't gouge a corporate budget.
"On the employer side, there's a recognition that they can't
always add to the benefits program in a way they have in the
past," said Ronald Leopold, national medical director at MetLife.
"But they want to offer employees different things and a broader
set of (choices)."
Among the many options offered: free tickets to theme parks,
cellphone plan discounts and at-work massages. Benefits at drug
manufacturer Allergan include adoption assistance and auto
insurance discounts. It also has a free concierge service for
workers to acquire theater tickets, drop off laundry and get
restaurant reservations. Firms such as S.C. Johnson, TD Bank and
Travelocity provide discounted health coverage for workers' pets
through Petplan Pet Insurance. Petplan "has seen tremendous
growth in this area of voluntary benefits," co-CEO Chris Ashton
said. "In this struggling economy, employers are increasingly
looking for low-cost options to keep their employees happy."
WSJ - 2011 ends with near record mortgage rate lows
Average fixed mortgage rates in the US over the past week
finished the year near all-time lows, with the 30-year home loan
at 3.95%. According Freddie Mac's weekly survey of mortgage
rates, the rate for a 30-year fixed-rate mortgage has been at or
below 4% for the past nine consecutive weeks and only twice in
2011 did it average above 5%. The 30-year fixed-rate mortgage
averaged 3.95% for the week ended Thursday, up from 3.91% the
previous week and below 4.86% a year ago. Rates on 15-year
fixed-rate mortgages averaged 3.24%, up from 3.21% last week and
below 4.20% a year earlier. Five-year Treasury-indexed hybrid
adjustable-rate mortgages, or ARM, averaged 2.88%, up from 2.85%
yet below 3.77% of a year ago. One-year Treasury-indexed ARM
rates averaged 2.78%, up from 2.77% in the prior week and below
3.26% last year. To obtain the rates, 30-year and 15-year
fixed-rate mortgages required payments of 0.7 percentage point
and 0.8 percentage point, respectively. Five-year and one-year
adjustable rate mortgages required an average payment of 0.6
percentage point. A point is 1% of the mortgage amount, charged
as prepaid interest
No comments:
Post a Comment