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The Wall Street Journal

Converting home equity into cash has been a challenge for homeowners since the real-estate downturn, but a growing number of lenders are quietly reviving a loan for seniors that does just that: The reverse mortgage.
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http://online.wsj.com/article/SB10001424052970204542404577158990079313270.html?mod=WSJ_RealEstate_LeftTopNews

The New York Times

First-time home buyers planning to purchase a house later this year may have a better chance of qualifying for a mortgage if they have had a history of paying their rent on time.

Making sense of the story

• Last year, credit-reporting agency Experian added a section to millions of credit reports showing on-time rent payments and raised the credit scores of many people.  The company said that this year it would add in negative marks, including mentions of bounced checks or of tenants’ leaving before a lease was up.
• Incorporating rental payments into credit scores could affect millions of people who have not established credit histories through credit cards, student loan repayments, and other credit sources.
• Almost half of consumers considered “high-risk” experienced an increase of 100 points or more after their positive rental history was added, according to Experian’s rent bureau.  Those with average or higher scores did not experience major movement.
• Although it is still too early to show the effects of the new credit report, which began in December, the changes are intended to allow lenders and consumers to have greater transparency, according to Corelogic.
• People who have lost their homes to foreclosure and are now leasing may be able to rebuild their credit histories by being responsible renters.
• However, consumer groups and advocates are skeptical, noting that reports are sometimes riddled with mistakes and some landlord-tenant disputes may be difficult to capture in a credit report.  Rent may not have been paid, for example, because the furnace was left unrepaired for months.

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http://www.nytimes.com/2012/01/08/realestate/mortgages-a-good-rental-history-can-help-borrowers.html?_r=1&ref=realestate

California home sales rose for the third consecutive month in December, marking the highest level since January 2011, according to data from C.A.R.  Sales also were up from a year ago, marking the sixth consecutive annual increase.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,940 in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  December’s sales were up 3.3 percent from November’s revised pace of 504,420 and were up 0.1 percent from the revised 520,330 sales pace recorded in December 2010.

The statewide median price of an existing, single-family detached home posted its second consecutive monthly gain, increasing 1.8 percent to $285,920 in December, up from a revised $280,960 in November.  However, the median price was down 6.2 percent from the revised $304,770 median price recorded in December 2010.

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Freddie Mac is giving mortgage servicers expanded authority to provide six months of forbearance to unemployed borrowers without Freddie Mac’s prior approval and up to an additional six months with prior approval.   This means unemployed borrowers may be eligible for up to 12 months of forbearance.  Freddie Mac’s forbearance options are being expanded at the direction of the Federal Housing Finance Agency and will take effect on Feb. 1.

Delinquent borrowers in an existing short term forbearance plan can be evaluated for an extended forbearance under the new policy.

Previously, Freddie Mac allowed servicers to grant up to three months of forbearance with no payment and without prior approval, or six months at a reduced payment with prior approval.  Longer forbearance required prior approval and was generally restricted to events such as natural disasters, permanent disability or long-term medical emergencies.

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HUD and the U.S. Dept. of the Treasury released the December edition of the Obama Administration’s Housing Scorecard this week.  Data in the Scorecard show some subtle improvements in the market over the past year, but underscore fragility as the overall outlook remains mixed. For example, new and existing home sales rose compared with the prior month and remain higher than a year ago, and homes are more affordable than they have been since 1971. Median-income families today have nearly double the funds needed to cover the cost of the average home.  However, home prices showed a slight dip from the prior month and remain below year ago levels.

The December Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

• More than 5.5 million modification arrangements were started between April 2009 and the end of November 2011 – including more than 1.7 million HAMP trial modification starts and more than 1.1 million FHA loss mitigation and early delinquency interventions.
• Nearly 910,000 homeowners have received a HAMP permanent modification to date, saving an estimated $9.9 billion in monthly mortgage payments. The Administration’s programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than 2.6 million proprietary mortgage modifications through November.

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MSNBC
It’s a tarnished silver lining for people at risk of losing their houses and homeowners in neighborhoods blighted by bank-owned properties, but the robosigning scandal that slowed the foreclosure process to a crawl appears to have increased lender interest in short sales.

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http://bottomline.msnbc.msn.com/_news/2011/12/29/9779389-increase-in-short-sales-give-market-a-little-breathing-room

A study by the Mortgage Bankers Association shows that prospective home buyers believe that given today’s affordable home prices and low interest rates, now is a good time to buy.  However, potential sellers are nearly unanimous in reporting that it is not a good time to sell a home, citing difficulty in finding buyers at desired sales prices.

The study utilizes 30 years of data from the University of Michigan’s Survey of Consumer Attitudes to examine consumer attitudes toward homeownership before, during, and after the most-recent recession to see if consumer sentiment changed toward home buying and selling.

Key findings from the study include:

• Despite high unemployment, slow economic growth and other problems plaguing the economy, almost 80 percent of American households believe that now is a good time to buy a home.
• Negative home-selling sentiment is strongly related to difficulty in finding buyers at desired sales prices, as well as the large overhang of mortgages past due or on foreclosure.
• Over the next five quarters, positive home-buying sentiment is forecast to remain around current and long-run average levels. In contrast, positive home-selling sentiment is forecast to remain around current, historic-low levels. This suggests that selling sentiment and, hence, market activity, will remain sluggish in the near term.

To obtain a copy of the report, visit www.housingamerica.org.

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Housingwire

Pending home sales in California declined from October to November, but grew over last year, the CALIFORNIA ASSOCIATION OF REALTORS® reported last week.

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http://www.housingwire.com/2011/12/21/california-pending-home-sales-drop-in-november-2

Data through October 2011, released Tuesday by S&P Indices for its S&P/Case-Shiller Home Price Indices, showed decreases of 1.1 percent and 1.2 percent for the 10- and 20-City Composites in October compared with September. Nineteen of the 20 cities covered by the indices also saw home prices decrease over the month. The 10- and 20-City Composites posted annual declines of 3 percent and 3.4 percent versus October 2010, respectively.

In October, both Composites and 14 MSAs – Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa, and Washington DC – saw their annual rates improve compared with September.

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The Orange County Register

California home sales posted an increase both on a monthly and annual basis in November, marking the fifth consecutive month of year-to-year sales increases, according to figures released today from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).  Meanwhile, the statewide median price of an existing, single-family detached home sold in California rose 1 percent compared with October, but declined 5.2 percent compared with a year earlier.

Making sense of the story

• Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted 503,570 units in November, up 2.1 percent from a revised 493,140 in October, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.
• November home sales also were up 2.3 percent from the revised 492,040 units sold during the like period a year ago.  The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the November pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.
• The November statewide median price of an existing, single-family detached home sold in California was $280,960, up 1 percent from $278,060 in October but down 5.2 percent from the $296,480 median price recorded for November 2010.
• The Unsold Inventory Index for existing, single-family detached homes was 5 months in November, down from 5.3 months in October and down from a 6.2-month supply in November 2010.  The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

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http://lansner.ocregister.com/2011/12/20/calif-house-sales-up-prices-down/155929/