Dome Homes Dot the Landscape...

While dome homes may be odd-looking to some people, to a growing set of home buyers, they are now the only way to go.

According to Dennis Johnson of Natural Space Domes in Minnesota, the housing crisis and recent devastating tornadoes have increased awareness and interest in building, or buying dome homes.

“We’ve had domes go through hurricanes,” Johnson said. “The three domes by New Orleans, had no damage around them at all even though the trees were decimated. [A] fourth one had shingles torn off, but no structural damage to the dome.”

Missouri’s Romain Morgan is a believer. In 2004, Morgan’s Halfway, MO, dome home withstood a tornado that swept over her home and left nary a trace of destruction. “I had no damage,” Morgan reported. “Just one piece of trim on a side window was torn off. I had a realtor ask me how much I would take for my house. I said ‘nothing.’ I won’t sell it. The feeling of security is incredible.”

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Official Google Blog: Introducing the Google+ project: Real-life sharing...

Official Google Blog: Introducing the Google+ project: Real-life sharing...: "Update : For our international readers, this post is also available in French , German , Italian , Japanese , Portuguese , Russian and Span..."

REALTOR® Magazine-Daily News-Fannie to Fine Lenders for Foreclosure Delays

REALTOR® Magazine-Daily News-Fannie to Fine Lenders for Foreclosure Delays

Homeowners Likely to See Hike in Taxes From School Districts...

Salt Lake City: School Districts are starting to feel the fray of the threads holding them together after three years of reduced budgets. As many as seven school districts are looking to raise taxes as a result.

With the proposed increases, each dollar amount is estimated on a $200,000 house.

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Shadow Inventory On the Decline...

The  “shadow inventory” of foreclosures—properties in the foreclosure process but not yet listed on multiple listings services—slowly sank over the past year but still amount to five months’ worth of home sales.

The numbers from an inventory last year of 1.9 trillion homes fell to 1.7 million in April, according to the latest report from CoreLogic. The decline is attributed to fewer new delinquencies over 90 days and a high level of distressed sales, which helped reduce the number of outstanding distressed loans.

Mark Fleming, chief economist for CoreLogic, commented, “The shadow inventory has declined by nearly one-fifth since it peaked in early 2010, in large part due to a reduced flow of newly delinquent loans in recent months. However, it will probably take several years for the shadow inventory to be absorbed given the long timelines in processing and completing foreclosures.”

Currently the shadow inventory accounts for 29 percent of the combined shadow and visible inventories.

REALTOR® Magazine-Daily News-Regulators Urged to Reconsider QRM Definition

QRM needs to be modified BIG TIME!

REALTOR® Magazine-Daily News-Regulators Urged to Reconsider QRM Definition

Is it Time To Rent Or Buy?

A recent article in the Deseret News covers the pros and cons of renting versus buying. There are, it appears, different perspectives on whether it's better to rent or buy — and no simple, one-size-fits-all answer, experts agree.

..."What we are seeing is a decline in home ownership that you would expect when across the country there are several million and in Utah about 12,000 loans in foreclosure," says James Wood, director of the Bureau of Economic and Business Research at the David Eccles School of Business at the University of Utah.

"That doesn't mean they are all vacant; there's a filing process. But what you have is people who have lost their home. They double up with friends or relatives or they rent. The rental market appears to be tightening up, as the vacancy rates come down a bit."

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Servicers Respond to Treasury's Decision to Withhold Incentives

Treasury says it will not pay program incentives to three of the nation’s largest mortgage servicers until it sees evidence that they’ve made improvements to the way they handle borrowers under the Home Affordable Modification Program (HAMP). 

After reviewing three key areas of program implementation, Treasury officials gave Wells Fargo, JPMorgan Chase, and Bank of America grades of “needs significant improvement.” That grade carries with it a suspension of incentive payments. 

Treasury evaluated the servicers on identifying and contacting homeowners; homeowner evaluation and assistance; and program reporting, management, and governance.

Wells Fargo issued a statement immediately following the release of Treasury’s report saying the company is “formally disputing” the findings.

“It paints an unfairly negative picture of our modification efforts and contradicts previous written assessments shared with us by the Treasury,” Wells Fargo said.


Tim Massad, assistant Treasury secretary, explained to reporters Thursday that the review was conducted primarily during the first quarter of this year, with some servicer reviews starting earlier in the fourth quarter of last year.


But according to Wells, the report reviews activities “that date back a year or more.” The company says it has since made improvements to its processes that are not reflected in the assessment.


“We are willing to accept fair and accurate criticism,” Wells Fargo said. “We realize that continued improvements are needed, but this report does not fairly reflect our leading role in making loan modifications….We want our customers to know we are here to help them.”


As of April 30, Wells Fargo says its servicing portfolio held 673,179 loans that were active trial or completed mortgage modifications initiated since the beginning of 2009. Of these, 574,128 were done through Wells Fargo’s own modification programs and 99,051 were completed through HAMP.


JPMorgan Chase also pointed to the fact that Treasury’s review covered aged actions that don’t reflect current performance.

“The bank respectfully disagrees with the assessment,” said a JPMorgan spokesman. “We have made significant improvements since the modifications that Treasury reviewed and continue to work hard to keep improving our processes and controls.”

JPMorgan reported in its first-quarter earnings announcement that it has completed 324,000 loan modifications since the beginning of 2009. Treasury’s report shows that of these, 95,440 were permanent HAMP mods.

In its response to Treasury’s servicer assessment report, Bank of America said, “We are committed to continually improving our processes to assist distressed homeowners…. We acknowledge improvements must be made in key areas, particularly those affecting the customer experience.”

Bank of America says it has already made progress in several performance areas. The company recently brought in a team of executives, who collectively have more than 70 years’ experience working with distressed borrowers, to head up critical areas within its Legacy Asset Servicing division.

“We believe future reviews will confirm [our] progress,” Bank of America said. “We meet regularly with [Treasury] officials to review performance and address any concerns, and will continue that process.”

Bank of America has completed more than 127,000 permanent HAMP modifications and more than 850,000 through its own proprietary programs.

Servicers are paid $1,000 for every permanent modification made under HAMP. “Pay for Success” incentives are then awarded to servicers annually for three years as long as the borrower stays current.

According to Massad, Bank of America, JPMorgan Chase, and Wells Fargo, together received $24 million in incentive payments last month. He says because HAMP participation is voluntary and Treasury doesn’t have the authority to impose fines like a regulator could, they’re using the tools they have to push servicers to take remedial actions when they are not in compliance with program guidelines.

“In comparison to the cost of supporting the program, the incentives were diminutive,” Ed Delgado, CEO of the Five Star Institute, told the Wall Street Journal on Thursday.

Delgado also notes that banks “are not in the loss mitigation practice to earn incentive fees, rather the servicing model was established to prevent foreclosures and reduce credit loss exposure.”

Massad stressed that Treasury’s objective is to “improve behavior” and “set a standard of transparency.” 

But Delgado says, “Based on [Thursday’s] performance reports, I wouldn’t be surprised if one of the larger banks withdraws from participation in the [HAMP] program.”

*Editor’s Note: Ed Delgado is CEO of the Five Star Institute, the parent company of DS News and DSNews.com.
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HUD 3.6 Million Available...

HUD ANNOUNCES $3.6 MILLION AVAILABLE TO HELP COMMUNITIES

PLAN FOR NEXT GENERATION OF NEIGHBORHOOD REVITALIZATION

WASHINGTON – The U.S. Department of Housing and Urban Development announced today that $3.6 million in Choice Neighborhoods Planning Grants will be awarded in fiscal year 2011 to assist in the transformation, rehabilitation and preservation of public housing and privately owned HUD-assisted housing. Read HUD’s FY 2011 Choice Neighborhoods Notice of Funding Availability.

“Our Choice Neighborhoods Initiative rewards communities that use innovative tools to tackle concentrated poverty holistically,” said HUD Secretary Shaun Donovan. “The initiative expands on the bipartisan success of the HOPE VI program by recognizing that we must link affordable housing with quality education, public transportation, good jobs and safe streets. President Obama has said that there is no greater economic policy than one that invests in our children’s future and helps America out-educate the world. But that's not possible if we leave a whole generation of children behind in our poorest neighborhoods.”

As part of HUD’s overall plan to revitalize areas of concentrated poverty, the Choice Neighborhoods Planning Grants are intended to help transform distressed public and assisted housing into sustainable, mixed-income housing that connects to key services, such as education and transportation, and supports positive outcomes for the neighborhood’s families. Eligible applicants are public housing authorities, local governments, nonprofit organizations, and for-profit developers that apply jointly with a public entity. 

Applicants must demonstrate their plan to revitalize the neighborhood through public-private partnerships that seek to develop high-quality public schools and early learning programs, public transportation, and improved access to jobs and well-functioning services.

These grants will enable communities to create a comprehensive “transformation plan,” or road map, to transform public and/or assisted housing within a distressed community to create a choice neighborhood. This Federal support provides a significant incentive and catalyst for the local community to take critical steps toward neighborhood transformation.

Applicants have until August 8, 2011 to apply for the Choice Neighborhoods Planning Grants. HUD anticipates awarding approximately 12 grants with a maximum award of $300,000 each.

Choice Neighborhoods is focused on directing resources to address three core goals – housing, people and neighborhoods. It is a centerpiece of the White House Neighborhood Revitalization Initiative(NRI). 

HUD partners with the Departments of Treasury, Justice, Education, and Health and Human Services on the NRI, an inter-agency effort to align federal housing, education, justice, and health programs to transform distressed, high-poverty neighborhoods into neighborhoods of opportunity.

Source:  HUD.gov

Letter from Congressman Jason Chaffetz

June 3, 2011

Dear Ms. McGarry,

Thank you for writing me about the Dodd-Frank Wall Street Reform and Consumer Protection Act. I appreciate knowing your views.

The recovery of our housing market is critical to the overall economic well-being of our nation. However, it's important that we avoid the same mistakes we made that led to the housing bubble--more stringency on lending standards is necessary (though the extent of that stringency is up for debate).

I believe that following the intent and language of all public law--including the QRM (Qualified Residential Mortgage) exemption provision contained in the Dodd-Frank Act--is not only important, but a keystone of good governance. You'll be pleased to hear that I signed on to the Sherman-Campbell letter, which asked federal regulators (including Ben Bernanke and Mary Schapiro) to consider down payments (lower than 20%) that have mortgage insurance as constituting a QRM.

Again, thank you for contacting me about this important issue. If you have any further concerns, feel free to call my Washington, D.C. office and speak with a member of my staff at (202) 225-7751. I also encourage you to sign up for my e-newsletter by visiting my website at www.chaffetz.house.gov.

Sincerely,

Jason Chaffetz

Member of Congress

________________________________________
Washington, DC Office
1032 Longworth HOB
Washington, D.C. 20515
Phone: (202) 225-7751
Fax: (202) 225-5629

Provo Office
51 S University Ave Suite #318
Provo, UT 84601
Phone: (801) 851-2500
Fax: (801) 851-2509

West Jordan Office
3895 West 7800 South
Suite #201
West Jordan, UT 84088
Phone: (801) 282-5502
Fax: (801) 282-2509

To Congress: 20% Down Payment Is TOO HIGH!

A bipartisan group of lawmakers are urging federal regulators to overhaul a mortgage proposal that includes a call for a 20 percent down payment for the “safest mortgages,” saying that it could threaten a full economic recovery “from years to come.”

In a letter obtained by the media on Wednesday, more than 160 lawmakers in the House of Representatives called the federal regulator’s mortgage proposal “overly burdensome government dictate” and said that the proposal would reduce the availability of affordable mortgages.

In an effort to urge more responsible lending and borrowing, several federal agencies have been developing a proposed risk-retention regulation under the Dodd-Frank Wall Street reform law, which requires lenders that securitize mortgage loans to retain 5 percent of the credit risk unless the mortgage is considered a safe mortgage or a “qualified residential mortgage.” (FHA and VA mortgages would be exempt.)

QRMs would be exempt from the 5 percent credit requirement but would have to meet certain guidelines, such as the proposed 20 percent downpayment requirement. Borrowers with less than 20 percent down could then be forced to pay higher fees and interest rates.

In the letter, the lawmakers called the 20 percent downpayment guideline too high and asked federal regulators to consider lower downpayment loans that have mortgage insurance that would constitute a QRM.

The National Association of REALTORS® has been an outspoken critic to the higher downpayment requirement, arguing that the 20 percent down payment would greatly jeopardize a housing recovery.

“We need to strike a balance between reducing investor risk and providing affordable mortgage credit,” NAR President Ron Phipps said in a public statement last week. “Better underwriting and credit quality standards have greatly reduced risk. Adding unnecessarily high minimum down payment requirements will only exclude hundreds of thousands of buyers from home ownership, despite their creditworthiness and proven ability to afford the monthly payment, because of the dramatic increase in the wealth required to purchase a home.”

Source: “House Lawmakers to Regulators: Kill Mortgage Plan,” Reuters News (June 1, 2011)

REALTOR® Magazine-Daily News-7 Cities Where Home Prices Are Rising

REALTOR® Magazine-Daily News-7 Cities Where Home Prices Are Rising