D-FW home prices up 7.6 percent in second quarter

Dallas-Fort Worth home prices are up 7.6 percent in the latest report from the National Association of Realtors.

The Washington, D.C.-based real estate trade group each quarter looks at what prices are doing in 147 U.S. home markets. Prices were up in 110 of those markets in the second quarter.

“It’s most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners,” Realtors economist Lawrence Yun said in the report. “Inventory has been trending down and homebuilders are still under-producing in relation to growing demand.

“Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight.”

The second quarter D-FW median single family price was $163,000 in the Realtors report.

Nationwide prices were up 7.3 percent to $181,500.

It was the biggest U.S. price increase since first quarter of 2006 – just before the U.S. housing market went in the tank.
Prices fell by more than a third around the country during the recession.

The Realtors said that sales of distressed houses – previously foreclosed or short sale properties – accounted for about 26 percent of total sales. That’s down from recent quarters.

Fannie Mae Posts Profit as Home Prices Rise

Rising home prices powered Fannie Mae to a $5.1 billion second-quarter profit, its largest since the mortgage-finance company was taken over by the government in 2008.

The gain, which followed a $2.7 billion profit in the first quarter and a $2.9 billion loss in 2011’s second quarter, offered the clearest sign yet that Fannie and its smaller sibling, Freddie Mac, are stabilizing after requiring massive injections of taxpayer aid to stay afloat. This week, Freddie reported a $3 billion profit for the same period.

Altogether this year, Fannie has made a profit of $7.8 billion. That is more than the …

Fannie Mae posts $5.1-billion 2nd-quarter profit, easing bailout

WASHINGTON — Buoyed by rising home prices, Fannie Mae on Wednesday posted a $5.1-billion profit from April through June and said that for the second straight quarter it would not need any more bailout money.

The improving real estate market was the main driver of one of the most profitable quarters ever by Fannie, the huge housing finance company that was seized by the government in 2008 along with sister firm Freddie Mac as they neared bankruptcy because of the collapse of the housing bubble.

“While it is too early to declare a national housing recovery, and our results for the second half of 2012 may not be as strong as the first half, we expect our financial results in 2012 to be substantially better than the past few years,” said Fannie Mae Chief Executive Timothy J. Mayopoulos.

Fannie reported a major drop in anticipated losses from bad loans it bought or guaranteed during the subprime mortgage boom. Because of that, Fannie did not have to set aside any additional money for future loan losses.

The company actually reported a $3-billion benefit from its $68-billion fund to cover future losses because losses in the second quarter and anticipated future write-offs were both down sharply.

Fannie Mae’s upbeat earnings followed a similar report Tuesday by Freddie Mac, which posted a $3-billion second quarter profit and also said it would not need more bailout money for that period.

The two companies, which are in government conservatorship and owned by the taxpayers, have received a combined $188 billion in federal money since 2008. Fannie and Freddie have repaid about $46 billion to the Treasury in dividends, leaving taxpayers on the hook for about $142 billion.

For every quarter that neither company needs additional bailout funds the dividend payments further reduce the amount owed to taxpayers. Combined, Fannie and Freddie own or back about 60% of all U.S. mortgages.

Fannie’s $5.1-billion second-quarter profit was the most the company has reported since 2004, when it restated its past earnings.

“It’s probably one of the most profitable quarters the company has ever had, pre- or post-conservatorship,” said Susan McFarland, Fannie’s chief financial officer. “Most of the things that affect our bottom line, with one exception, moved in a positive direction.”

The exception was interest rates, which dropped, leading to losses on derivatives owned by the company.

But McFarland cautioned that the second-quarter earnings might not continue for the rest of the year.

“We know in the second quarter of most years we see a better home price situation because it’s the spring selling season,” she said. “So we know that part of the improvement, not all of it, was the spring selling season.”

And although Fannie has now gone two straight quarters without needing more bailout money, McFarland would not guarantee the company would not have to ask for help again because of the dividend payments owed to the Treasury.

The second-quarter dividend payment was $2.9 billion, and the company might not make enough money in future quarters to cover it.

“I think there’s a decent likelihood that every once in a while we won’t earn enough to cover the full amount of the dividend payment,” she said.


Home prices rise sharply

Freddie Mac posts $3-billion profit in second quarter

Regulator nixes push to cut mortgage debt of troubled homeowners

Freddie Mac Text: Mtg Survey: 30Y Fixed Avg 3.59% Aug 9 Wk

WASHINGTON (MNI) – The following is the text of the latest Freddie
Mac Primary Mortgage Market Survey released Thursday:

Freddie Mac (OTC: FMCC) today released the results of its Primary
Mortgage Market Survey (PMMS), showing fixed mortgage rates moving
higher following stronger-than-expected employment reports. The 30-year
fixed averaged 3.59 percent, and the 15-year fixed averaged, 2.84
percent, still near the historic low.

News Facts

– 30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an
average 0.6 point for the week ending August 9, 2012, up from last week
when it averaged 3.55 percent. Last year at this time, the 30-year FRM
averaged 4.32 percent.

– 15-year FRM this week averaged 2.84 percent with an average 0.6
point, up from last week when it averaged 2.83 percent. A year ago at
this time, the 15-year FRM averaged 3.50 percent.

– 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM)
averaged 2.77 percent this week with an average 0.6 point, up from last
week when it averaged 2.75 percent. A year ago, the 5-year ARM averaged
3.13 percent.

– 1-year Treasury-indexed ARM averaged 2.65 percent this week with
an average 0.4 point, down from last week when it averaged 2.70 percent.
At this time last year, the 1-year ARM averaged 2.89 percent.

Average commitment rates should be reported along with average fees
and points to reflect the total upfront cost of obtaining the mortgage.
Visit the following links for Regional and National Mortgage Rate
Details and Definitions. Borrowers may still pay closing costs which are
not included in the survey.

Quotes attributed to Frank Nothaft, vice president and chief
economist, Freddie Mac.

“Fixed mortgage rates inched up again this week following
stronger-than-expected employment reports. The economy added 163,000
jobs in July, well above the market consensus forecast of 100,000, and
the largest increase since February. In addition, the number of
announced corporate layoffs fell 45 percent in July compared to last
July and was the third time this year that announced layoffs were less
than the same month in 2011 according to The Challenger Report. This
suggests further net gains in employment are likely in the near future.”

** MNI Washington Bureau: 202-371-2121 **


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County: Fannie Mae, Freddie Mac owe excise taxes for 75 properties

Fannie Mae and Freddie Mac, once federal agencies, are now publicly traded private corporations. They are not entitled to any excise tax exemption granted to governmental agencies, according to the lawsuit.

Article 8E of Chapter 105 of the N.C. General Statutes imposes an excise tax on the recordation of land conveyance instruments of $1 per $500 of value of land conveyed.

Burrell said that one of the problems in trying to determine a monetary value is “that since they don’t pay the excise stamps, we have no way of knowing what the sales price was.”

According to Burrell, the county office revealed that as of July 25, Fannie Mae had conveyed 47 properties in the county, and as of June 29, Freddie Mac had conveyed 28 properties.

Burrell pointed out that since it is a class-action lawsuit involving all of the state’s 100 counties, each county would get its share from a potential settlement based on the amount it should have received from Fannie Mae and Freddie Mac.

Plus, Burrell said, half of the excise tax received goes to the state.

Any money the county receives from the lawsuit would go into the county’s general fund, Burrell said.

He added that the county is also seeking proper compliance in the future.

Wyoming Local Associations Provide zipForm as Member Benefit – Virtual

FRASER, Mich., Aug. 9, 2012 (GLOBE NEWSWIRE) — zipLogix, creator of zipForm®, the Exclusive and Official Forms Software of the National Association of REALTORS®, announced that the Freemont County Board of REALTORS® (FCBR), Northwest Wyoming Board of REALTORS® (NWWBOR), Sheridan County Board of REALTORS® (SCBOR), and Teton Board of REALTORS® (TBOR) have joined the growing list of state and local organizations including Multiple Listing Services (MLS) that have chosen zipForm.

company logo

company logo

zipLogix is providing the real estate professionals of Wyoming with its premier forms software, zipForm 6 Professional (online). The convenience of immediate access to the most up-to-date association forms online will enable their ability to provide the best customer service.

“At zipLogix we are very proud to assist Wyoming REALTORS® achieve excellence with the very best forms technology available today,” said Walt McDonald, Chairman of the Board for zipLogix. “Having access to the best forms technology is just the beginning. Our entire suite of software integrates directly with zipForm. Current zipForm 6 users can certainly attest to the convenience of zipLogix products working together.”

Members have additional options to increase productivity via the zipLogix suite of real estate technology solutions. For on-the-go agents and brokers, there is zipForm Mobile Web Edition, the companion software to zipForm 6 Professional (online). Within a mobile web browser users have access to create or modify transactions on the Apple® iPad®, iPhone®, BlackBerry®, and Android™ devices. Compatibility with a wide array of devices offers unprecedented versatility for all mobile real estate professionals.

Also available to members is zipLogix’s relay® transaction collaboration software. This tool takes the traditional contract relationship online and provides top-notch risk management via a secure website 24/7. Members also may add an E-signature integration option, decreasing the time it takes to get a transaction securely signed. zipVault Online document storage is also available within zipForm 6 Professional. Each product is integrated with zipForm 6 Professional optimizing functionality and limiting data entry.

With extensive knowledge of real estate professionals’ business needs, zipLogix continually enhance their entire suite of products and develops new innovative applications. For more information on solutions for today’s real estate industry or discuss association partnership opportunities, contact Wendy Waldrep at 888-318-2660 X130 or wwaldrep@ziplogix.com.

(C) Copyright 2012 GlobeNewswire, Inc. All rights reserved.

Fannie Mae, Freddie Mac Profits, Housing Market Turning a Corner?

Mortgage financing giants Fannie Mae and Freddie Mac are seeing a marked improvement in home values, which is significantly boosting their bottom lines even as Washington considers abolishing them. The news out of the two firms, which back the majority of U.S. mortgages, is the latest sign that the housing market may be turning a corner after years of being a drag on the economy.

After reporting a profit of $5.1 billion for the second quarter Wednesday — which came on top of paying a $2.9 billion dividend to taxpayers — Fannie Mae also appeared to make a case for its continued existence.

“With our high-quality new book of business and diminishing legacy expenses, Fannie Mae has strong potential earnings power that can deliver considerable value to taxpayers over the long term,” Timothy J. Mayopoulos, president and chief executive, said in a statement.

President Obama and congressional Republicans have agreed that the firms, with nearly 9,000 local employees combined, should be eliminated.

D.C.-based Fannie and McLean-based Freddie play critical roles in the nation’s housing market and the overall economy. The firms back more than half of all mortgages made by U.S. banks. They also guarantee mortgage-related investments that have been central to the Federal Reserve’s efforts to stimulate economic growth.

Obama has floated two possible directions for what would follow Fannie and Freddie’s elimination. In one scenario, the government would create smaller governmental or private entities that would support homeownership. In the second, the government would step back completely and rely on the private sector to fill Fannie and Freddie’s roles.

A senior Obama administration official said Wednesday that the administration stands by its prior views.

Congressional Republicans have favored proposals that simply shutter Fannie and Freddie. Lawmakers who have loudly criticized the mortgage giants did not respond to requests for comment Wednesday.

Fannie and Freddie, which were seized by the government in 2008, are a source of enormous controversy in Washington. The firms have cost taxpayers just shy of $150 billion…

Read more: Washington Post

Fannie Mae posts $2.2B net gain for Q2

WASHINGTON – Fannie Mae earned $2.2 billion from April through June, its second quarterly gain in net income since being taken over by the government during the 2008 financial crisis.

The mortgage giant attributed the increase to improving home prices and fewer foreclosures.

Fannie said Wednesday that it paid a dividend of $2.9 billion to the Treasury Department and sought no additional aid.

Fannie’s net income attributable to common shareholders was 37 cents per share in the second quarter. That compares with a net loss of $5.2 billion, or 90 cents per share, in the same period last year.

“We think home prices have stabilized,” Fannie President and CEO Timothy Mayopoulos said in an interview on CNBC.

Fannie has reported gains in net income in both quarters this year. It earned $2.7 billion in the January-March quarter and paid a dividend of $2.8 billion to the Treasury.

The company received about $116 billion from the Treasury Department, the most expensive bailout of a single company. It has so far repaid about $26 billion.

Mayopoulos said he believes the company can be profitable going forward, though that doesn’t necessarily mean that Fannie will make enough money to pay a dividend each quarter to the Treasury.

“It’s going to depend on home prices,” Mayopoulos said.

The housing market has started to recover this year after languishing since the bust in 2006 and 2007. Home sales are higher than last year, although they are still below healthy levels. Home prices are rising in many markets, partly because the supply of homes for sale has fallen.

U.S. home prices, including sales of distressed properties, jumped 2.5 percent in June from the same month in 2011, according to a report issued Tuesday by data analytics firm CoreLogic. And the Standard Poor’s/Case-Shiller home price index reported price increases from April to May in all 20 cities tracked by the survey.

On Tuesday, McLean, Va.-based Freddie Mac reported net income of $1.2 billion for the second quarter and didn’t request any additional federal aid for the period. The gain compared with a net loss of $3.76 billion in the same period a year ago.

Fannie and Freddie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans. Along with several federal agencies, they backed nearly 90 percent of new mortgages over the past year.

The government rescued the two companies during the financial crisis after they incurred massive losses on risky mortgages. Taxpayers have spent about $170 billion to rescue Fannie and Freddie. It could cost roughly $260 billion more to support the companies through 2014 after subtracting dividend payments, according to the government.

Anthony Sanders, a real estate finance professor at George Mason University, said stable prices have reduced Fannie and Freddie’s losses on mortgages. But he doubts either Freddie Mac or Fannie Mae could ever repay their full debt to the taxpayers.

The companies are so deep in debt to the government that they’d need several decades of profits to fully repay, Sanders says.

Freddie Mac Announces the Issuance of a New Five-Year Reference Notes …

/PRNewswire/ — Freddie Mac (OTC: FMCC) announced today that it plans to issue a new five-year USD Reference Notes® security, CUSIP number 3137EADL0, due on September 29, 2017.  The issue will be priced on Thursday, August 9, 2012, and will settle on Friday, August 10, 2012, at benchmark size.

The new five-year Reference Notes security will be offered via a syndicate of dealers headed by BNP Paribas Securities, Corp., Goldman, Sachs Co. and Barclays Capital.  An application will be made to list the issue on the Euro MTF market of the Luxembourg Stock Exchange.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission (“SEC”) on March 9, 2012; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (‘Exchange Act”) since December 31, 2011, excluding any information “furnished” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2011, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.

SOURCE Freddie Mac

Freddie Mac: Shadow Inventory Lightens As the Rate of Excess Housing Is Absorbed

Freddie Mac‘s U.S. Economic and Housing Market Outlook for August affirm reports from CoreLogic and Morgan Stanley that housings shadow inventory is down. Home Destination, a Minneapolis-based professional residential Realtor with RE/MAX Results, finds fewer foreclosures on the market as the pending loom of shadow inventory seems to have lightened.

Minneapolis, Minnesota (PRWEB) August 10, 2012

Freddie Mac just released it’s acclaimed Economic and Housing Market Outlook for August 2012 about negating real estate “shadows”. Somewhere the term “shadow inventory” was created casting a gloom of uncertainty by name over increases in home values and the certainty of the housing recovery. A good look into the shadows dispels some of it murkiness. Home Destination is grateful for the lighter news that shadow inventories have improved and the sense of relief it brings to many homeowners.

Freddie Mac says, “House-price news has been decidedly good over the past quarter. The Freddie Mac House Price Index for the U.S. showed a brisk 4.8 percent gain from March to June 2012, the largest quarterly pickup in eight years; the national index posted a June-to-June rise of 1 percent, the largest annual appreciation since November 2006. Further, the improvement was relatively broad-based. In fact, 34 states and the District of Columbia posted higher home values during the 12 months through June 2012, the largest number of states registering positive annual appreciation since April 2007”.

“While the shadow inventory persists, there is an important difference in today’s market compared with those of recent years and that’s the substantially reduced amount of excess vacant housing,” said Frank Nothaft, Freddie Mac ‘s vice president and chief economist. “The housing recovery may finally be coming out from the shadows.”

Morgan Stanley researchers offer a Q2 report and said, “Shadow inventory sheared 35% from peak. The shadow inventory of homes likely to be sold after foreclosure declined by 35% since the peak reached two years ago”.

Another highly regarded source for real estate and housing recovery data is CoreLogic. The CoreLogic index for the U.S. was up 2.5 percent June-to-June (and up 3.2 percent when distressed home sales were excluded), and the Federal Housing Finance Agency House Price Index posted year over-year gains through May.

CoreLogic’s website says, “It is clear that disposition of the shadow inventory impedes future home price growth and can also increase the magnitude of home price declines. But the effect may not be as calamitous as some have suggested. A slowly improving economy and a collection of government programs have intervened to provide alternatives to foreclosure, slow the pace of new delinquencies, and reduce the shadow inventory.”

The decline in the shadow inventory is a positive development because it removes some of the downward pressure on house prices,” said Mark Fleming, chief economist for CoreLogic.

It’s always nice when you learn things aren’t so bad! Jenna Thuening, owner of Home Destination, believes that the decline in the shadow inventory is due in part to a number of factors:

1)    The National Mortgage Settlement cleared up some of the legal uncertainty hanging over banks

2)    Banks finally selling off distressed properties

3)    Banks may be utilizing alternatives besides repossession more often

4)    Servicers are getting better at modifying troubled home loans

An interesting comment by Marty Boardman on June 28, 2012, may indicate the shadow inventory looming gloom is really better than economist thought. He states, “It’s easy to see why some would say that houses owned by the bank but not for sale on the multiple listing service are in the shadows. But the definition should stop there. Only a tiny, miniscule percentage of those homes in the foreclosure process and delinquent mortgages not yet in foreclosure will ever make it to auction. Most will be modified, brought current or paid off long before the foreclosure takes place”.

One wonders just how real estate professionals can estimate or factually know the number of homes in shadow inventory. Professor Michael Orr of the ASU Real Estate Studies Department said, “I actually keep a file of exactly what houses the banks own and what they’re doing with them,” he said. “When you actually count them out, it’s a relatively trivial amount that they actually own that they haven’t already listed for sale.”

Contact Home Destination at 612-396-7832 if you are a Minneapolis or St. Paul area homeowner with questions about local shadow inventory, buying or selling a home, or if you need help with foreclosure.

Jenna Thuening
Home Destination: Real Estate
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