The realty dream on the world realtor’s day

BENGALURU: The House that you looked at today and wanted to think about buying till tomorrow, is the same house someone may have looked at yesterday and will buy today. As Franklin Roosevelt said, “Real Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full and managed with reasonable care, it is about the safest investment in the world”.

Fortunately, CREA (I), Confederation of Real Estate Associates (India) is helping Bangalore citizens and Indians across the globe, day in and day out in Buying the right house, office space or land TODAY with plethora of knowledge and domain expertise. 

What better way to salute the people, the illustrious members of CREA (I) who cover every square foot of land that exists in Bengaluru, than celebrating the “World Realtor’s Day”.

NAR, National association of Realtors, USA, the parent body along with NAR-India and all its associations celebrated the World Realtor’s Day with élan on 21st March 2017. On this grandiose occasion, the Movers and Shakers at CREA (I) have set up an ambitious dream to align the various Industry sectors in Bangalore and India and contribute to Nation building Process. 

Infrastructure sector is all about creating assets for the Country. It creates the form of a city and enables the life of the city. Infrastructure is even more important than the Architecture. The Trains, Metros, Buses, Public Transport systems, Parking hubs, Communication links besides the Commercial Hubs, Schools and educational institutions, Parks, Lakes, the Green spaces, Roads, Highways all constitute the Infrastructure which is vital to growth of any city, state or country.

Infrastructure is managed both at Centre and State level by the Governments and specific ministries. Infrastructure has a huge allocation of funds and focus but sometimes lacks the inputs from the ground level for a direction. 

Affordable Housing sector which has also been given the status of Infrastructure Industry in recent budget is all about providing and fulfilling the dream of Housing for all by 2022. A roof on the head of every Indian now seems a reality soon. Affordable housing brings stability, economic diversity and improves the physical quality of the neighborhood. 

CREDAI is the Confederation of Real Estate Developers’ Associations of India, an Apex body with over 11500 Real Estate Developers from 162 cities across the country and they define the skylines of all cities and towns in India. 

RERA – is the Real Estate Regulation Authority that will come into effect in each state in India from May 1st, 2017 with the implementation of Real Estate Regulation Act (RERA) and it will have Public and Private representation on the Core Committee of RERA. 

NAR-India is the National Association of Realtors, the association of all Real Estate Associations of Realtors across various cities in India. The membership today exceeds 20000 members across 40 cities in India. 

CREA (I) – Confederation of Real Estate Associates (India), Bengaluru has taken upon itself to align the mission of Govt. of India with State Govt. bodies and Ministry of Town Planning, Urban Ministry, Infrastructure Ministry and the execution bodies like BDA, BBMP, BMRDA etc. in Bengaluru to streamline the inputs for Infrastructure growth and to provide ground level expertise. Being a part of the Governing Board of NAR-India, CREA (I) further intends to emulate the model Nationwide in each state with the help and reach of NAR-India associates and CREDAI to achieve the same results across the country. The Realtor is surely finding his place under the sun and it surely is a matter of pride and honor to be a part of Nation building exercise.

PPP models, Public-Private-Partnership has already been an identified model for Infrastructure building but Public Private participation is an extended belief that should help not just Namma Bengaluru but every urban center in India and 20000 Realtors and 1200 Developers across the country will be happy to contribute to Bharat Nirman. The day is not far when Real Estate, the second largest employer in the country will be accorded an Industry status of its own. 

 On World Realtors Day, I would ask all Home/Office Buyers and Investors to congratulate the CREA (I) member who works tirelessly to help you Buy, Sell or Rent your properties. Remember, the best journey takes you Home and you, the Home Buyer is a part of Realtors journey. Home is after all not just a place, it is a Feeling. Congratulations to all CREA (I) members, members of NAR-India and all Realtors worldwide with Best wishes for a “Happy Realtors’ Day”. Dream on because Dreams become Reality in Realty. 

(The author of this article is the founder of Huts Global and the Spokesperson and General Secretary of CREA (I). Write to him at

Home sales up much higher in local area than state

Charles Allen Mason is the business reporter for the Daily News. He is originally from Pittsburgh, Pennsylvania. He is a 1977 graduate of West Virginia University in Morgantown. In his spare time he enjoys reading, music, sports and cooking.

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Burlington native named president-elect of Greater Boston Association of Realtors

Marie Presti, of Burlington, recently was elected to the office of president-elect of the Greater Boston Association of Realtors.
Presti is a real estate industry veteran, having worked for many area firms over the past 20 years. Last year, she opened her own independent agency, The Presti Group, on Washington Street in Newtonville.
As president-elect, Presti will sit on the board of directors and the executive committee of GBAR. She is responsible for keeping the local Realtor membership informed on public policy issues, financial matters and organizational activities conducted by the association.
In addition to her role as president-elect, Presti is chairperson of the GBAR Forms Task Force. Last year, Presti was treasurer and served on the forms, mediation and professionals standards committees. She was also chairperson of the Mediation Committee and member of the Professional Standards Committee with the Massachusetts Association of Realtors; and is a graduate of the MAR Leadership Academy. She holds several designations, including Accredited Buyer Representative, Certified Residential Specialist and Seniors Real Estate Specialist. She holds a GREEN designation from the National Association of Realtors and is certified in negotiation and loss mitigation.
“Being elected to the top post of one of the industry’s premier associations is an honor. I have enjoyed working with GBAR for the past several years in a variety of leadership roles. As president-elect this year, I look forward to serving GBAR’s 9,000 plus membership and guiding the association to new heights. The industry information and contacts I am exposed to, certainly translate to value added benefits for my clients,” said Presti.
A 30-year Newton Corner property owner, Presti is involved with many local groups, including the Newton Historical Society, the Newton Mother’s Forum, the library and the Rotary Club. She has also taught more than 100 courses through Newton Community Education over the past 13 years.
She holds a bachelor’s from Mount Holyoke College and a master’s in business administration from the Olin School of Business at Babson College. She is a native of Burlington.

Letter to Secretary Mnuchin and Director Watt regarding Fannie Mae and Freddie Mac profits

Letter to Secretary Mnuchin and Director Watt regarding Fannie Mae and Freddie Mac profits

Advocacy Letter – 03/23/17

Source: The Leadership Conference on Civil and Human Rights
Recipient: The Honorable Melvin L. Watt and The honorable Steven Mnuchin

View a PDF of this letter here

Dear Director Watt and Secretary Mnuchin:

We are writing to express our concerns about the declining capital buffer at the government-sponsored enterprises – Fannie Mae and Freddie Mac – and to urge the Administration to take immediate steps to shore up their capital position in order to prevent a draw on the U.S. Department of the Treasury’s commitment of taxpayer funding for any non-credit related losses. With the Enterprises’ capital buffer declining to zero starting on January 1, 2018, we urge Federal Housing Finance Agency (FHFA) to exercise its discretion under the Senior Preferred Stock Purchase Agreements to suspend the dividend payment on their Senior Preferred Stock this month.

FHFA has previously identified a number of non-credit related factors that could lead to a loss at the Enterprises and result in a draw on their U.S. Treasury commitments. Over a year ago, FHFA Director Mel Watt identified the Enterprises’ declining capital buffer as posing “the most serious risk and the one that has the most potential for escalating in the future.” He also identified the risks and challenges of the Enterprises’ protracted conservatorship. To add to those existing challenges, both the White House and Congress have indicated plans to enact a corporate tax cut. If enacted, then tax reform would require a change in the accounting treatment of the Enterprises’ deferred tax assets and result in a loss at the Enterprises – precipitating a draw. Quite simply, a draw by the Enterprises on their U.S. Treasury commitments is avoidable, would be politically regrettable, is inconsistent with the core principles of regulation outlined in the President’s February 2nd Executive Order of the financial system to “prevent taxpayer funded bailouts,” and would unnecessarily place the availability and accessibility of mortgage credit at risk.

We believe that it is critical that FHFA act now, with support from the U.S. Treasury. Existing authorities under both the Housing and Economic Recovery Act of 2008 (HERA) and the Senior Preferred Stock Purchase Agreements allow the agency to take the steps necessary to protect taxpayers, low- and moderate-income homebuyers and small lenders across the country. While a draw on their U.S. Treasury commitments might create a sense of political urgency on Capitol Hill around housing finance reform, we are concerned about any precipitous legislative action on both the affordable housing mission of the Enterprises and equitable access to the secondary mortgage market by small lenders. 

We urge FHFA to suspend the dividend payments to the U.S. Treasury this month and allow the Enterprises to rebuild their capital buffers to avoid a draw for widely anticipated non-credit related losses at the Enterprises. We know this decision is time sensitive, so we thank you for your consideration of our views and we would welcome an opportunity to speak further.


Community Home Lenders Association
Community Mortgage Lenders of America
Corporation for Enterprise Development (CFED)
The Leadership Conference on Civil and Human Rights (LCCR)
League of United Latin American Citizens (LULAC)
Leading Builders of America
National Community Reinvestment Coalition (NCRC)

NBC2 Investigators: Buyer claims to be ripped off by Fannie Mae …


The hustle and bustle of Miami was just too much for Renate Manns and her family sometimes. They wanted a place to escape.

“Our plan was to get something out here to be able to be coming out here every weekend,” Manns said.

Manns and her husband found what they thought was the perfect place to build their dream. Ten acres in rural Hendry County they could bring their three children to disconnect from technology. They planned on building a home, horse stables and a garden.

“My husband has this dream of having this chalet style cabin out in the back,” Manns said.

But that dream quickly came crashing down when they realized they didn’t get what they paid for.

“I don’t know what’s going to happen here.”

Manns and her husband bought the property in 2015 for $67,700. According to transaction records filed in court, all of the marketing for the property showed it was 10 acres.  But when she started applying for permits on the property, she was told she only owned 2.65 acres.

“There was no doubt in our minds that we were buying a 10-acre property,” Manns said.

What makes it worse for Manns is that she bought the property from Fannie Mae, a government-sponsored bank.

“I was distraught, distraught because I never imagined that something like this could happen,” Manns said.

“A bank sold us this!”

Manns ended up hiring real estate attorney Kara Jursinski to file suit against Fannie Mae. They also filed suit against the the law firm Albertelli Law and real estate agent Elizabeth Strehse.

“Their belief was 10 acres for ‘x’ amount of dollars and unfortunately after closing, that’s not the case,” Jursinski said.

Jursinski says Fannie Mae never owned all the property they were selling. The bank foreclosed on only part of the land held by the previous owner. However, when they had Strehse list the property, it was marketed as the full 10 acres.

“There were multiple listings that showed this property as 10 acres,” Manns said.

But Jursinski says all the parties involved rebuffed Manns’ offer to rescind the deal. She says contracts with banks like Fannie Mae often restrict what the new owners can recuperate after the fact.

Click here to review a Fannie Mae Contract Addendum

Jursinski says that’s why she recommends owners take precautionary steps to make sure they know what they’re signing up for.

“I always recommend a thorough property inspection, a radon test, a mold test, termite inspection and then they have to know the contract that they’re signing limits them to such a degree,” Jursinski said.

But she says that could not have prevented what happened to Manns.

NBC2 reached out to Fannie Mae, but a spokesperson told us they do not comment on pending litigation.

A representative from Albertelli Law got back to NBC2 and said they would look into it but has not gotten back.

When reached by phone, real estate agent Elizabeth Strehse claimed Manns was “already in breach” by talking to NBC2 but didn’t explain what that meant.

She wouldn’t answer any of our questions but said of Manns and her husband: “In the meantime, they might want to relearn how to read English.”

While Manns is looking for her money back in court, she knows their dream on this property is likely over.

“It’s still a beautiful piece of land but this isn’t what we wanted,” Manns said.

Fannie Mae Announces First CIRT Transactions of the Year

Fannie Mae announced on Thursday that it has completed two of its traditiional Credit Risk Transfer (CIRT) transactions of 2017. The transactions, CIRT 2017-1 and CIRT 2017-2, cover $20.4 billion in existing loans in the company’s portfolio. Fannie Mae has acquired nearly $4 billion of insurance on a little under $160 billion of loans through CIRT programs.

“These two CIRT transactions transferred $510 million of risk and were met with a record number of participants, which included sixteen reinsurers and insurers,” said Rob Schaefer, VP for credit enhancement strategy management at Fannie Mae. “We are pleased with the growing interest in our CIRT program and will continue to take steps to build liquidity in the risk-sharing market through the regularity and transparency of our credit risk transfer transactions.”

CIRT 2017-1 and CIRT 2017-2 both came into effect on February 1. CIRT 2017-1 will retain risk for the first 50 basis points of loss on an $18.1 billion loan pool, while CIRT 2017-2 will retain risk for 50 basis points of loss on a loan pool of $2.3 billion.

The loan pools covered consist of 30-year fixed-rate loans with loan-to-value ratios greater than 60-percent and less than or equal to 80 percent, all acquired by Fannie Mae from January 2016 through July 2016.

Coverage for these deals is provided based upon actual losses for a term of 10 years. After one year, the aggregate coverage amount may be reduced depending on the paydown of the insured pool and the principal amount of insured loans that become seriously delinquent. Coverage may be cancelled after five-years, or with a fee before the five-year anniversary.

Through its credit risk transfer efforts, including CIRT, Fannie Mae has transferred a portion of the credit risk on around $944.2 billion in single-family mortgages.

Fannie, Freddie revamp plan unlikely this year, dividends in focus …

WASHINGTON An overhaul of Fannie Mae and Freddie Mac is highly unlikely to make it into this year’s legislative calendar, Congressional staffers say, possibly shifting the new administration’s immediate focus to allowing the mortgage financing institutions’ to rebuild depleted capital.

Fannie and Freddie stocks soared late last year when President Donald Trump’s pick for Treasury Secretary Steve Mnuchin said the companies that have been in government conservatorship since the 2008 financial crisis should be privatized.

Hedge funds and other investors have been lobbying for the removal of government controls over the mortgage giants’ profits, which since 2012 have been transferred to the Treasury, and their eventual privatization.

The shares dipped when Mnuchin seemed to backpedal on the privatization pledge during his January confirmation hearing and suffered another setback last month when a court rejected investors’ suit against the dividend transfers.

Congressional staffers say the Senate Banking Committee has begun weekly bipartisan staff briefings on Freddie and Fannie reforms, but it is starting from scratch. The House Financial Services Committee is focused on other legislation, such as renewing the flood insurance program and rolling back parts of the Dodd-Frank financial reform, pushing the mortgage giants’ revamp down the to-do list, they say.

Instead, investors’ focus is shifting to how Mnuchin and Federal Housing Finance Agency Director Mel Watt, an Obama Administration holdover, will manage the dividends transfers.

Analysts expect the two institutions to make a full $10 billion dividend payment for the fourth quarter on March 31. But investors will be looking for any indication from Watt or Mnuchin about whether they plan to allow the mortgage firms to retain profits later on and begin the slow recapitalization process.

Though rebuilding an adequate capital buffer would take years – as long as two to three presidential administrations, according to one analyst – it would eventually allow Fannie and Freddie to leave government conservatorship, returning value to their investors.

Watt has warned the mortgage giants have a dangerously thin capital buffer. Mnuchin said during his confirmation hearing he favored finding a “bipartisan fix.”

The two will likely wait for congressional inaction to become a de facto impasse before letting Freddie and Fannie hold on to their profits, analysts said, estimating a decision could be made two or three quarters out.

“Mnuchin has been out there talking about a bipartisan agreement,” Heights Securities analyst Edwin Groshans told Reuters. “That process will have to play out until it in essence fails. When that process fails, that would open the opportunity for Mnuchin and Watts to act.”

Tim Pagliara, an investor who founded Investors Unite, a coalition of more than 1,000 Fannie and Freddie investors, told Reuters he did not expect an imminent legislative fix and called the situation in Congress “fluid.”

“The focus is going to continue to be on the court cases and what the administration is going to do – and what they’ve said they’re going to do,” Pagliara added.

President Donald Trump’s administration generally supports transferring government programs to the private sector. Trump donor John Paulson runs three hedge funds in which the president has invested and which held stakes in the mortgage institutions. Mnuchin, under the terms of a government ethics agreement, divested between $1 million and $2 million he had in Paulson’s funds.

Fannie and Freddie provide stability to the U.S. housing market by buying mortgages and bundling them into government-backed securities. During the financial crisis, they received $187 billion in government aid and by now have repaid $265 billion via dividend payments to the Treasury.

FHFA’s Watt has warned the payments have depleted the companies’ capital buffer and that by January 2018 they will have “no ability to weather quarterly losses.”

Fannie was required by law to keep a minimum capital reserve of about $33 billion and Freddie $29 billion headed into the 2008 bailout, which suspended those requirements.

Industry analysts, shareholders and advocacy groups – both conservative and liberal – all believe that the same 2008 bailout law gives Watt the authority to allow the companies to begin rebuilding capital, without waiting for Congress.

(Reporting By Amanda Becker; Editing by Linda Stern and Tomasz Janowski)

Fannie and Freddie Report Strong Volume| Housing Finance …

Both Fannie Mae and Freddie Mac posted big multifamily financing volumes in 2016, with a significant amount of business coming in affordable housing.


The activity is attributed to strong market conditions as well as product innovation from the government-sponsored enterprises (GSEs).

“The vast majority of the year we had continued low interest rates and high (low-income housing) tax credit (LIHTC) pricing,” says David Leopold, vice president of affordable housing production for multifamily at Freddie Mac. “The market dynamics were favorable for new transactions.”

However, any momentum gained in 2016 is likely be slowed this year as tailwinds have shifted into headwinds for the industry.

Several factors could reduce the number of transactions this year, including rising interest rates and falling LIHTC pricing. In addition, several states are delaying their LIHTC allocation rounds as they wait for the market to settle after being jolted by the prospects of tax reform. Concerned that Congress will overhaul to the tax laws that drive the LIHTC program, housing credit investors have cautiously stepped out of the market or have been repricing deals in early 2017.

In light of the different changes, leaders at both GSEs say they will be digging in to do more preservation deals this year.

Others agree that the industry in general may shift toward doing more preservation projects if new construction transactions become tougher to finance.

“A drop in the amount of LIHTC equity in deals, due to the anticipated drop in the corporate tax rate reducing tax credit investors’ yield, could make it tough to finance new construction projects without having quite a bit of soft subordinate debt,” says Frank Baldasare, senior vice president at Walker Dunlop, a Fannie Mae and Freddie Mac lender.

Overall, both GSEs will have an emphasis on doing “uncapped business,” which includes affordable housing deals, as well on financing deals that incorporate green construction and green renovations, says Baldasare.

“Both Fannie Mae and Freddie Mac are offering discounts off their standard spreads if you’ll follow one of their green programs,” he says.”

Fannie Mae

Fannie Mae reported providing $55.3 billion in financing to support 724,000 units of all multifamily housing—the highest volume in the history of its Delegated Underwriting and Servicing (DUS) program.

Bob Simpson
Bob Simpson

Just in its affordable housing program, the GSE posted $5.6 billion in overall production, including $4.3 billion for rent-restricted properties and properties receiving other federal and state subsidies. These are properties that serve residents earning no more than 60% of the area median income (AMI). Fannie Mae saw this area of business increase from $3 billion in 2015, a 43% hike.

The company also provided $1.3 billion in financing for properties with rent restrictions between 60% and 80% of the AMI, a big increase of 101% from $648 million in 2015.

States and local governments are working to increase affordable housing in their communities, including putting in rent restrictions, regulatory agreements, and incentives to preserve units in this 60% to 80% income range, say Bob Simpson, vice president of affordable, green, and small-loan business at Fannie Mae.

“We’re going to continue to do more to support those efforts in 2017,” he say. “We think it’s a growing part of the market.”

However, housing with deeper levels of affordability will remain the GSE’s primary focus.

“We’re going to do more between 60% and 80% AMI, but our affordable bones run deep in the income spectrum below 60% of the AMI, and we’re not going to stop doing that,” Simpson says.

He attributes Fannie Mae’s recent gains to the “product innovation” that it brought to the market in early 2016, including a significant amount of growth in the amount of business the company did through its structured ARM (adjustable-rate market) and capped ARM products.

“I also think being able to provide a declining prepay option on all of our executions across the affordable spectrum significantly increased our competitiveness, so we saw a nice pickup on our declining prepay options,” says Simpson, noting that Fannie Mae also saw growth in its tax-exempt bond pass-through product in 2016.

Freddie Mac

Freddie Mac reported a record $56.8 billion in total new multifamily loan volume last year, financing approximately 738,000 rental units. This included $6.3 billion in targeted affordable housing loans, of which more than $2.4 billion was for multifamily bond credit enhancements, and other guaranteed transactions.

David Leopold
David Leopold

“We added four new targeted affordable seller-servicers,” says David Leopold, vice president of affordable housing production for multifamily at Freddie Mac. “We also diversified our product mix. More specifically, we did over $1.2 billion in preservation loans. That was a record high.”

Leopold expects to see even more preservation deals this year. “We will still be aggressive about new tax credit deals, but because there may be fewer of those we hope to make up the difference by leaning into preservation,” he says.

Freddie Mac has grown its targeted affordable seller-servicer network from 11 to 17 in the last two years, according to Leopold, adding that any of the recent top nine would have made the top three just three years ago.

The recent moves to expand its network and diversify products position the company to be in strong shape going forward, he says.

The biggest piece of Freddie Mac’s $6.3 billion in targeted affordable housing production is its tax-exempt loans (TELs). The company recently rolled out its Flex TEL product that allows for a float-to-fixed structure that works well with acquisition-rehab transactions, which have a more constrained NOI (net operating income) for a period, according to Leopold.

Under the program, Freddie Mac can “float” for as long as three years and then flip a loan to a predetermined fixed rate.

Most of the firm’s TEL volume continues to be “forward” financing commitments. In these deals, Freddie Mac partners with an entity that provides construction-period financing and LIHTC equity. The partner is able to receive Community Reinvestment Act credit for both the construction loan and LIHTC investment, and Freddie Mac is then able to come in and provide a fixed-rate permanent loan.

Duty to Serve

Looking ahead, it will be interesting to follow the GSEs’ implementation of their Duty to Serve requirements. Fannie Mae and Freddie Mac are required to provide leadership to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in three underserved markets—affordable housing preservation, manufactured housing, and rural housing.

In December, the Federal Housing Finance Agency (FHFA) issued a final rule on the GSEs’ Duty to Serve. The rule cracks open the door for Fannie Mae and Freddie Mac to potentially re-enter the LIHTC market in rural areas. Once major LIHTC investors, the GSEs have not been in the market since going into conservatorship.

At this time, the rule does not permit the GSEs to make new LIHTC investments. Instead, it says that investments in rural areas would be eligible for Duty to Serve credit subject to approval of such investments by FHFA.

Leaders at Fannie Mae and Freddie Mac have expressed their interest to get back into the LIHTC market.

Freddie Mac Issues Monthly Volume Summary for February 2017

MCLEAN, VA–(Marketwired – Mar 23, 2017) – Freddie Mac ( OTCQB : FMCC ) today issued the company’s Monthly Volume Summary for Feb. 2017, which provides information on Freddie Mac’s mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities and other investments.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at, Twitter @FreddieMac and Freddie Mac’s blog

Freddie Mac Issues Monthly Volume Summary for February 2017

MCLEAN, VA–(Marketwired – Mar 23, 2017) – Freddie Mac ( OTCQB : FMCC ) today issued the company’s Monthly Volume Summary for Feb. 2017, which provides information on Freddie Mac’s mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities and other investments.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at, Twitter @FreddieMac and Freddie Mac’s blog