Senate committee approves statewide guidelines for foreclosures
The Banking and Finance Committee voted 5-2 in favor of sending
the substitute to House Bill 110 to a full vote, which could
happen as soon as this week. According to the proposal, the bill
would authorize cities and counties to create foreclosure
registries that would have statewide requirements. The fee to
register a property would not exceed $175, and the penalties for
failing to register properties would be limited to $500 a month
and $2,000 total. The proposal does not preempt city or county
ordinances requiring registration of foreclosed properties for
repeated violations that remain uncorrected for at least 60 days,
but would it would stop any other local foreclosure registries
currently in existence. Banking Committee Chairman Sen. Jack
Murphy said such a law is needed to prevent cities and counties
from treating fees associated with foreclosures and vacant
properties as a cash cow. "It can't become a revenue source,"
Murphy said. "That's a tax. We need something standardized that
everybody has to go by. That will keep abuse from occurring."
Murphy cited reports that DeKalb County raked in more than
$550,000 in fees in less than a year.
The original legislation was sponsored by state Rep. Mike Jacobs,
a Republican lawmaker whose district includes DeKalb County. The
bill is a carryover from last year, when it stalled as lobbyists
for cities and counties raised concerns that the bill could have
unintended consequences. Several people representing groups who
opposed the original version remarked that they had not seen the
updated proposal until Monday's committee hearing and were still
evaluating whether it is an improvement. "County and city
elected officials are hearing a lot from the public about this,"
said Clint Mueller, a spokesman for the Association of County
Commissioners of Georgia. "There are a lot of foreclosed and
properties that are not being taken care of. We have no idea
where to even begin to find out who is responsible." Still,
Mueller said it is important to ensure that municipalities are
not punished in an effort to address the issue through state
legislation. "It could have far-reaching effects if it's not
done right," he said. If approved, the law would take effect
July 1.
Small business optimism edges up
The National Federation of Independent Business (NFIB) said its
Small Business Optimism Index rose 1.8 points to 93.8. Eight of
the index's 10 components were either improved or flat. About
half the gain was due to reduced concern about business
conditions six months into the future, the NFIB said. The index
is still in recession territory, however, 6 points below the
pre-recession average and more than 10 points below the same
point in the recovery from the 2001 recession. The gains in the
index are supportive of the view that economic growth will pick
up in 2012, but the gains are not likely to be substantial unless
the index rises more sharply, the business group said. The NFIB
reported earlier this month that small businesses cut staff in
December. The% of businesses reporting reductions in employment
remained relatively low, but the percentage increasing
employment, though larger, did not offset the losses and remains
historically low for an expansion.
Zillow - 3 - 5 years away from normal
Real estate website Zillow.com on Tuesday released a report that
shows South Florida home values were flat in November.
Zillow’s Home Value Index for Palm Beach, Broward and
Miami-Dade counties was $137,000 – up 0.1% from October.
Values here have been flat or positive for seven of the past nine
months. Prior to that, though, values had declined in 66 of the
previous 67 months. Zillow said home values in South Florida
have fallen about 4% from a year ago and 55% from the 2006 peak.
Zillow's report comes a day after a mostly encouraging forecast
from the Clear Capital research firm. Stan Humphries, chief
economist for Zillow, said in a statement that supply and demand
are still out of whack in many markets, and more foreclosures in
2012 are expected to hurt home values. “Even with the
anticipated increase in foreclosures, look for 2012 to be a
transitional year in which home values fall modestly followed by
a prolonged period of flat home values,” he said. “We’re
still three to five years away from ‘normal’ housing market
conditions.”
New details for MF Global
The investigation into MF Global is intensifying as federal
authorities unearth new details and confront potential obstacles
in their hunt for roughly $1.2 billion in customer money that
disappeared from the brokerage firm. While prosecutors and
regulators have jointly conducted dozens of depositions with
former and current employees, a senior official in the Chicago
office of MF Global recently declined to meet with the federal
authorities, people briefed on the investigation said. That
official, Edith O’Brien, a treasurer at MF Global, is
considered a “person of interest” in the investigation, the
people said. Federal authorities suspect that she transferred
about $200 million to JPMorgan Chase in London on the eve of the
bankruptcy of MF Global, money that turned out to be customer
cash. Authorities had expected to interview Ms. O’Brien last
month. She instead balked at meeting voluntarily, asking first to
strike a deal with criminal authorities that would excuse her
from prosecution, the people said. The criminal investigation is
led by the Federal Bureau of Investigation and federal
prosecutors in Chicago and Manhattan. The request by Ms.
O’Brien is the first in this case, one person briefed on the
investigation said. Still, such requests are common in federal
investigations and it does not suggest that she violated Wall
Street regulations. Ms. O’Brien has not been accused of any
wrongdoing, and there is no indication that she intentionally
transferred customer money to JPMorgan. Ms. O’Brien’s
lawyer, Reid H. Weingarten, did not respond to requests for
comment.
WSJ - mall occupancy up slightly
US malls and shopping centers experienced a slight improvement in
occupancy during the fourth quarter, a relief for landlords that
have been battling lackluster demand from retailers for most of
the downturn. But data service Reis Inc. cautioned that any
recovery remains precarious and the outlook for this year is
mixed, given the clouds hovering over the economy. While some
retailers are expanding—such as Forever 21 Inc., Dick's
Sporting Goods Inc. and Dollar General Corp.—landlords can
expect more headaches from high-profile store closures by
companies such as Sears Holdings Corp. and Gap Inc. The fourth
quarter typically is the strongest for retail landlords as well
as their tenants. Still, the fourth quarter of last year was one
of the strongest since the recession hit, in terms of rising
rents and occupancies.
Malls in the top 80 US markets posted an average vacancy rate of
9.2% in the quarter, down from the 11-year high of 9.4% in the
third quarter, according to Reis, which began tracking mall data
in 2000. Mall vacancies had been climbing steadily for most of
the downturn since 2007, when the vacancy rate fell as low as
5.5%. Demand for space at neighborhood and community shopping
centers also strengthened in the quarter, with stores occupying
an additional 3.1 million square feet in the top 80 markets.
Because of new construction, vacancy in this category remained at
11%, where it has been for three quarters, a level last seen in
1991. Owners of retail property have been hit hard during the
downturn by overbuilding, consumer caution and competition from
online shopping. In the three years covering 2008 through 2010,
retailers at neighborhood and community shopping centers vacated
a total of 31.6 million square feet, according to Reis. But the
most recent quarter's results indicate that the worst might be
over, especially with the economy adding jobs. A decent holiday
shopping season also gave the retail property sector a boost,
with 23 national chains reporting an average sales gain of 3.4%
in November and December at stores open at least a year,
according to Retail Metrics Inc.
The average annual rent at US malls rose to $38.92 a square foot
in the fourth quarter, a 0.3% increase from the third quarter and
the second consecutive quarterly gain, according to Reis. Mall
rents had been mostly flat or declining since 2008. Average
annual rents at US strip centers increased 0.1% in the fourth
quarter to $19.04 a square foot after 13 consecutive quarters of
remaining flat or declining. Retail landlords also have been
helped by a virtual shutdown in new store construction, meaning
they face less competition for tenants. Only 4.5 million square
feet of shopping-center space opened in 2010, the lowest figure
in 31 years, according to Reis. Last year was slightly higher,
with only 4.9 million square feet being delivered.
HARP 2.0 effects to be seen soon
Effects of the retooled Home Affordable Refinance Program (HARP)
may start to appear next month, analysts said yesterday. Since
the Federal Housing Finance Agency (FHFA) announced changes to
HARP in October, servicers have been adjusting operations.
Upfront fees, loan-to-value ratio caps and representation and
warranty claims on the old loan file were eliminated for eligible
borrowers. The program launched in March 2009. Roughly 838,000
Fannie Mae and Freddie Mac borrowers were able to refinance into
lower rates, but only about 7% of them had LTVs above 105%.
Prepayments slowed in December, according to Bank of America
Merrill Lynch (BOAML) analysts, dropping 6% on Fannie Mae
securities backed by 30-year fixed-rate mortgages. "We
anticipate another uneventful month in January before February
provides the first glimpse into the new program’s prospects.
Even before then, it is interesting to note that HARP-eligible
pools — which responded slowly at the start of the current
refinancing wave — continued to show slow, steady prepayment
increases this month," BOAML analysts said.
Rumors stirred of another plan from the White House to boost more
refinancing. A white paper from the Federal Reserve made the case
for one, along with other suggestions to address still lingering
housing problems. Analysts at JPMorgan Chase said Monday that
modifying all coupon stacks of mortgage-backed securities would
violate the prospectus. The loans, analysts said, need to be at
risk of imminent default for such an action. If Washington
started a refi wave on GSE loans and everything was moved into a
4% mortgage, Chase analysts believe it would only result in a
total of $25 billion to $30 billion in annual savings for
borrowers. "The dollar savings of such a move are modest in
light of the overall economy," the analysts said and would merely
be a transfer of wealth from investors to borrowers. "HARP 2.0
theoretically addresses many refi hurdles, and we will learn over
the next six months how successful it will be."
The Banking and Finance Committee voted 5-2 in favor of sending
the substitute to House Bill 110 to a full vote, which could
happen as soon as this week. According to the proposal, the bill
would authorize cities and counties to create foreclosure
registries that would have statewide requirements. The fee to
register a property would not exceed $175, and the penalties for
failing to register properties would be limited to $500 a month
and $2,000 total. The proposal does not preempt city or county
ordinances requiring registration of foreclosed properties for
repeated violations that remain uncorrected for at least 60 days,
but would it would stop any other local foreclosure registries
currently in existence. Banking Committee Chairman Sen. Jack
Murphy said such a law is needed to prevent cities and counties
from treating fees associated with foreclosures and vacant
properties as a cash cow. "It can't become a revenue source,"
Murphy said. "That's a tax. We need something standardized that
everybody has to go by. That will keep abuse from occurring."
Murphy cited reports that DeKalb County raked in more than
$550,000 in fees in less than a year.
The original legislation was sponsored by state Rep. Mike Jacobs,
a Republican lawmaker whose district includes DeKalb County. The
bill is a carryover from last year, when it stalled as lobbyists
for cities and counties raised concerns that the bill could have
unintended consequences. Several people representing groups who
opposed the original version remarked that they had not seen the
updated proposal until Monday's committee hearing and were still
evaluating whether it is an improvement. "County and city
elected officials are hearing a lot from the public about this,"
said Clint Mueller, a spokesman for the Association of County
Commissioners of Georgia. "There are a lot of foreclosed and
properties that are not being taken care of. We have no idea
where to even begin to find out who is responsible." Still,
Mueller said it is important to ensure that municipalities are
not punished in an effort to address the issue through state
legislation. "It could have far-reaching effects if it's not
done right," he said. If approved, the law would take effect
July 1.
Small business optimism edges up
The National Federation of Independent Business (NFIB) said its
Small Business Optimism Index rose 1.8 points to 93.8. Eight of
the index's 10 components were either improved or flat. About
half the gain was due to reduced concern about business
conditions six months into the future, the NFIB said. The index
is still in recession territory, however, 6 points below the
pre-recession average and more than 10 points below the same
point in the recovery from the 2001 recession. The gains in the
index are supportive of the view that economic growth will pick
up in 2012, but the gains are not likely to be substantial unless
the index rises more sharply, the business group said. The NFIB
reported earlier this month that small businesses cut staff in
December. The% of businesses reporting reductions in employment
remained relatively low, but the percentage increasing
employment, though larger, did not offset the losses and remains
historically low for an expansion.
Zillow - 3 - 5 years away from normal
Real estate website Zillow.com on Tuesday released a report that
shows South Florida home values were flat in November.
Zillow’s Home Value Index for Palm Beach, Broward and
Miami-Dade counties was $137,000 – up 0.1% from October.
Values here have been flat or positive for seven of the past nine
months. Prior to that, though, values had declined in 66 of the
previous 67 months. Zillow said home values in South Florida
have fallen about 4% from a year ago and 55% from the 2006 peak.
Zillow's report comes a day after a mostly encouraging forecast
from the Clear Capital research firm. Stan Humphries, chief
economist for Zillow, said in a statement that supply and demand
are still out of whack in many markets, and more foreclosures in
2012 are expected to hurt home values. “Even with the
anticipated increase in foreclosures, look for 2012 to be a
transitional year in which home values fall modestly followed by
a prolonged period of flat home values,” he said. “We’re
still three to five years away from ‘normal’ housing market
conditions.”
New details for MF Global
The investigation into MF Global is intensifying as federal
authorities unearth new details and confront potential obstacles
in their hunt for roughly $1.2 billion in customer money that
disappeared from the brokerage firm. While prosecutors and
regulators have jointly conducted dozens of depositions with
former and current employees, a senior official in the Chicago
office of MF Global recently declined to meet with the federal
authorities, people briefed on the investigation said. That
official, Edith O’Brien, a treasurer at MF Global, is
considered a “person of interest” in the investigation, the
people said. Federal authorities suspect that she transferred
about $200 million to JPMorgan Chase in London on the eve of the
bankruptcy of MF Global, money that turned out to be customer
cash. Authorities had expected to interview Ms. O’Brien last
month. She instead balked at meeting voluntarily, asking first to
strike a deal with criminal authorities that would excuse her
from prosecution, the people said. The criminal investigation is
led by the Federal Bureau of Investigation and federal
prosecutors in Chicago and Manhattan. The request by Ms.
O’Brien is the first in this case, one person briefed on the
investigation said. Still, such requests are common in federal
investigations and it does not suggest that she violated Wall
Street regulations. Ms. O’Brien has not been accused of any
wrongdoing, and there is no indication that she intentionally
transferred customer money to JPMorgan. Ms. O’Brien’s
lawyer, Reid H. Weingarten, did not respond to requests for
comment.
WSJ - mall occupancy up slightly
US malls and shopping centers experienced a slight improvement in
occupancy during the fourth quarter, a relief for landlords that
have been battling lackluster demand from retailers for most of
the downturn. But data service Reis Inc. cautioned that any
recovery remains precarious and the outlook for this year is
mixed, given the clouds hovering over the economy. While some
retailers are expanding—such as Forever 21 Inc., Dick's
Sporting Goods Inc. and Dollar General Corp.—landlords can
expect more headaches from high-profile store closures by
companies such as Sears Holdings Corp. and Gap Inc. The fourth
quarter typically is the strongest for retail landlords as well
as their tenants. Still, the fourth quarter of last year was one
of the strongest since the recession hit, in terms of rising
rents and occupancies.
Malls in the top 80 US markets posted an average vacancy rate of
9.2% in the quarter, down from the 11-year high of 9.4% in the
third quarter, according to Reis, which began tracking mall data
in 2000. Mall vacancies had been climbing steadily for most of
the downturn since 2007, when the vacancy rate fell as low as
5.5%. Demand for space at neighborhood and community shopping
centers also strengthened in the quarter, with stores occupying
an additional 3.1 million square feet in the top 80 markets.
Because of new construction, vacancy in this category remained at
11%, where it has been for three quarters, a level last seen in
1991. Owners of retail property have been hit hard during the
downturn by overbuilding, consumer caution and competition from
online shopping. In the three years covering 2008 through 2010,
retailers at neighborhood and community shopping centers vacated
a total of 31.6 million square feet, according to Reis. But the
most recent quarter's results indicate that the worst might be
over, especially with the economy adding jobs. A decent holiday
shopping season also gave the retail property sector a boost,
with 23 national chains reporting an average sales gain of 3.4%
in November and December at stores open at least a year,
according to Retail Metrics Inc.
The average annual rent at US malls rose to $38.92 a square foot
in the fourth quarter, a 0.3% increase from the third quarter and
the second consecutive quarterly gain, according to Reis. Mall
rents had been mostly flat or declining since 2008. Average
annual rents at US strip centers increased 0.1% in the fourth
quarter to $19.04 a square foot after 13 consecutive quarters of
remaining flat or declining. Retail landlords also have been
helped by a virtual shutdown in new store construction, meaning
they face less competition for tenants. Only 4.5 million square
feet of shopping-center space opened in 2010, the lowest figure
in 31 years, according to Reis. Last year was slightly higher,
with only 4.9 million square feet being delivered.
HARP 2.0 effects to be seen soon
Effects of the retooled Home Affordable Refinance Program (HARP)
may start to appear next month, analysts said yesterday. Since
the Federal Housing Finance Agency (FHFA) announced changes to
HARP in October, servicers have been adjusting operations.
Upfront fees, loan-to-value ratio caps and representation and
warranty claims on the old loan file were eliminated for eligible
borrowers. The program launched in March 2009. Roughly 838,000
Fannie Mae and Freddie Mac borrowers were able to refinance into
lower rates, but only about 7% of them had LTVs above 105%.
Prepayments slowed in December, according to Bank of America
Merrill Lynch (BOAML) analysts, dropping 6% on Fannie Mae
securities backed by 30-year fixed-rate mortgages. "We
anticipate another uneventful month in January before February
provides the first glimpse into the new program’s prospects.
Even before then, it is interesting to note that HARP-eligible
pools — which responded slowly at the start of the current
refinancing wave — continued to show slow, steady prepayment
increases this month," BOAML analysts said.
Rumors stirred of another plan from the White House to boost more
refinancing. A white paper from the Federal Reserve made the case
for one, along with other suggestions to address still lingering
housing problems. Analysts at JPMorgan Chase said Monday that
modifying all coupon stacks of mortgage-backed securities would
violate the prospectus. The loans, analysts said, need to be at
risk of imminent default for such an action. If Washington
started a refi wave on GSE loans and everything was moved into a
4% mortgage, Chase analysts believe it would only result in a
total of $25 billion to $30 billion in annual savings for
borrowers. "The dollar savings of such a move are modest in
light of the overall economy," the analysts said and would merely
be a transfer of wealth from investors to borrowers. "HARP 2.0
theoretically addresses many refi hurdles, and we will learn over
the next six months how successful it will be."
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