BRIEF-Freddie Mac issues monthly volume summary for April


May 23 Federal Home Loan Mortgage Corp

* Freddie mac – total mortgage portfolio increased at an
annualized rate of 0.5% in april

* Freddie mac – single-family refinance-loan purchase and
guarantee volume was $9.4 billion in april

* Freddie mac – relief refinance mortgages comprised
approximately 9% of total single-family refinance volume during
april

* Freddie mac – total number of single-family loan
modifications were 4,588 in april and 16,587 for the four months
ended april 30, 2017

* Freddie mac – aggregate unpaid principal balance of
mortgage-related investments portfolio decreased by
approximately $1.5 billion in april

* Freddie mac – mortgage-related securities and other
mortgage-related guarantees increased at an annualized rate of
2.1% in april

* Freddie mac – single-family seriously delinquent rate
remained flat at 0.92% in april; multifamily delinquency rate
remained flat at 0.03% in april
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BRIEF-Freddie Mac announces pricing of $237.5 mln multifamily small balance loan securitization


May 23 Federal Home Loan Mortgage Corp


* Freddie Mac announces pricing of $237.5 million
multifamily small balance loan securitization

* Freddie Mac says expects to guarantee about $237.5
million in multifamily SB certificates, which are anticipated to
settle on or about may 30, 2017
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Freddie Mac Portfolio Up 0.5 Percent

Freddie Mac’s total mortgage portfolio increased over the year, rising at an annualized rate of 0.5 percent between April 2016 and April 2017, according to the April Monthly Volume Summary released by Freddie Mac on Tuesday. Though the jump does mark year-over-year growth for the government-sponsored enterprise, April’s annual increase is significantly lower than March’s, which came in at 4.8 percent. December 2016 saw a 10 percent annualized growth rate.

In total, Freddie Mac completed $28 billion in mortgage purchases or issuances, $4.1 billion in sales, and $23 billion in liquidations for the month of April. The balance of Freddie’s mortgage portfolio by the end of the month was just over $2 trillion. The GSE has funded $127 billion in mortgages year-to-date.

Total aggregate unpaid principal balance (UPB) of Freddie Mac’s mortgage-related investments portfolio declined in April, dropping $1.5 billion to $289.7 billion year-to-date. Under its mortgage-related investments portfolio, the GSE completed $20 billion in purchases, $18 billion in sales, and $3 billion in liquidations. It saw an annualized growth rate of -6.2 percent for the month. Freddie Mac mortgage-related securities and mortgage loans made up the bulk of the portfolio, while non-agency and agency loans only comprised a small portion of it.

Mortgage-related securities and mortgage-related guarantees rose by an annualized rate of 2.1 percent, jumping from $1.76 trillion to $1.88 trillion since April last year. The portfolio has risen steadily since early 2016, even jumping 10 percent in December 2016.

More than 40 percent of Freddie’s total single-family mortgage portfolio for April consisted of refinance loans, and 9 percent of those were “relief refinance mortgages.” Just over half—56 percent—of the agency’s loans were purchase loans for the month. In total, Freddie Mac completed 4,588 single-family loan modifications in April and 16,587 year-to-date.

The rate of serious delinquency remained steady for both Freddie’s single-family and multi-family loans in April, coming in at 0.92 percent and 0.03 percent of the enterprise’s total loan volume respectively. On single-family loans, “seriously delinquent” refers to borrowers who are 90 or more days overdue; on multi-family loans, it is 60-plus days.

To view the full monthly summary, visit FreddieMac.com.

 




6 Home Appraisal Myths You Need to Stop Believing Immediately

Putting your home up for sale can be an emotional endeavor. After you come to terms with saying goodbye to a place where you created countless memories, some stranger with a clipboard comes along and puts a value on what’s priceless to you.

And that assessment has the power to tank the entire sale.

Yes, the appraisal is one of the scariest parts of the home-selling process—and one of the most confusing. After all, why is somebody valuing your home after you’ve already determined a listing price and received an offer? Plus, you’re never sure if the appraiser is truly factoring in those countless weekends you spent on backbreaking home upgrades—the Jacuzzi tub, the bidet, and the trendy shiplap walls have to count for something, right?

Not necessarily.

Think of the appraisal as a tool for removing emotion from the equation between the two sides who desperately want to make a sale, And understand that it’s completely natural to be a bit confused about just what, exactly, helps add value to your home in the appraiser’s eyes. But we’re here to clear it up for you.

So take note of these common myths surrounding the elusive home appraisal.

Myth No. 1: An appraisal is the same thing as a home inspection

Although both the appraisal and the home inspection are used as safeguards for the buyer (and the buyer’s lender), don’t confuse the two. Home inspectors and appraisers have completely different jobs. Sure, they both poke around your home. But the inspector’s job is to uncover everything that’s problematic—or could potentially become problematic—with the home, while the appraiser’s job is to find the objective market value of the property. Got that?

To do the job, the appraiser will use comps (the same thing you used to determine your list price), but that’s just for starters. Appraisers take into account a home’s condition, square footage, and location. Appraisers also note the quality and condition of the plumbing, flooring, and electrical system. With data in hand, they make their final assessment and give their report to the lender.

Myth No. 2: The appraiser works for the buyer

The buyer pays for the appraisal, but the appraiser works for—and is hired by—the lender. It doesn’t matter if you and the buyers have agreed on a price. The buyer’s lender needs to be on board because it’s the lender’s investment, too.

But don’t fear: Even though the appraisal is meant to protect the buyer’s lender from a bad deal, appraisers are trained to be unbiased and ethical. In fact, it’s a crime to coerce or put any pressure on an appraiser to hit a certain value.

Myth No. 3: An appraisal will give you the magic number of what the buyer will pay

The appraisal process isn’t an exact science. In fact, the appraisal is only one opinion of what your home is worth. It doesn’t dictate how much the buyer should pay, or how much the seller should accept.

So what happens if the appraisal doesn’t match the contract price?

If your home is appraised lower than the price you and the buyer agreed upon, the lender isn’t going to pony up more money to make up the difference. Instead, it’ll be up to you and the buyer to figure out who pays for the shortfall. Can the buyer throw in more? Or do you, as the seller, need to cover the difference just to make the deal go through? Well, let the discussions begin.

“The seller and buyer can agree to negotiate a new purchase price to match the appraisal, or a seller might consider finding someone willing to offer cash, which doesn’t require an appraisal,” says Roberta Loughman, a real estate agent with Shorewood Real Estate in Colorado Springs, CO.

“Buyers can pay any price they determine for the house, regardless of the appraisal,” adds Janice Buchele, senior vice president of residential operations at the William Fall Group, a national provider of real estate valuation and analysis services in Toledo, OH. “The report simply provides guidance for the lender.”

Myth No. 4: The bigger the house, the higher it will appraise

Consider a supersized home built on an average-size lot in an otherwise modest neighborhood. Although the home might dwarf its neighbors, that doesn’t mean it will be appraised for that much more than neighboring homes.

The value of the home is measured as if it were similar to others in the area that would commonly be expected on that same lot, Buchele says. In fact, some people might consider the bigger home more of a burden—after all, there’s more to be heated, cooled, insured, and maintained.

Myth No. 5: The more bells and whistles, the higher the appraisal

Wait a minute: What do you mean your $100,000 investment in fancy appliances isn’t worth $100,000 extra in the appraisal? OK, take a step back. This situation can be hard for sellers to wrap their heads around. But if you’ve overly improved your space with amenities that don’t exist in surrounding homes, there’s no nearby sales data the appraiser can use to decide just what those amenities are worth.

“If no one else in the neighborhood has a home theater, then typical buyers in that neighborhood probably don’t demand a theater,” Buchele points out.

And that goes for your décor, too. You might think your home is worth more because of the impeccable vibe that you—or your stager—have given the house. But appraisers ain’t got time for decorating divas. They make a straight value judgment on the quantifiable aspects of the house—that is, the square footage, number of rooms, and other measurable data.

Myth No. 6: All amenities are created equal

If you’ve equipped your home with an in-law suite, a sexy Tiki bar, or a home exercise space that actually makes you want to work out—well, we applaud you. But if you converted your garage to do so, don’t expect the home appraiser to give you props.

Your house has a garage for a reason, points out Austin Fernald, a home appraiser in Orange County, CA. “Most people want to park their cars where they are safely protected from the elements and break-ins,” he says.

The moral of the story? Be careful any time you remove one amenity in order to add another—it might come back to bite you in the appraisal.

Cape Fear Realtors receives national awards

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Wegmans to Anchor Former Fannie Mae Headquarters Redevelopment in DC

Wegmans will anchor the redevelopment of the former Fannie Mae headquarters, which will feature retail, residential, cultural arts, hospitality and commercial space.

Wegmans will anchor the redevelopment of the former Fannie Mae headquarters, which will feature retail, residential, cultural arts, hospitality and commercial space.

WASHINGTON, D.C. — Roadside Development and North America Sekisui House LLC (NASH) have inked a deal with supermarket chain Wegmans to anchor the redevelopment of the former Fannie Mae headquarters at 3900 Wisconsin Ave. in Washington, D.C. The redevelopment includes the original brick buildings that were constructed by Equitable Life Co. in 1958 and 1962, as well as nearly 10 acres surrounding the buildings. The redevelopment will feature retail, residential, cultural arts, hospitality and commercial space. The development team includes Shalom Baranes Associates and Michael Vergason Landscape Architects. A timeline for the project has yet to be announced.





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Wegmans to open in DC, anchor Fannie Mae redevelopment | WTOP

WASHINGTON — The District’s first Wegmans grocery store will anchor the redevelopment of the Fannie Mae headquarters on Wisconsin Avenue in Northwest.

It will likely open sometime in 2022.

A joint venture between D.C.-based Roadside Development and North America Sekisui House LLC (NASH) acquired the Fannie Mae campus last fall for $89 million and plans a mixed-use “urban village” redevelopment of the property that may include residential, retail and office space.

NASH is a subsidiary of Japan’s largest home-building company, Sekisui House Ltd.

D.C. Mayor Muriel Bowser made the official announcement Sunday evening at the International Council of Shopping Centers convention in Las Vegas.

Wegmans has been actively looking for a location in the District for several years and has held numerous discussions and meetings with the city and developers in its search for a store location.

It will be a bit of an engineering feat for Roadside, which will preserve the 60-year-old main headquarters building but incorporate Wegmans into the structure in an unusual way.

“What we’re actually doing will be holding up the building with a steel structure and we’re going to cut underneath the building and slide Wegmans into the basement of this existing building, and then create a whole new street and retail presence in the back,” Roadside’s Richard Lake told WTOP.

The store will not be below grade. It will open to a new street behind the building that will be part of the village.

Roadside still has not settled on the reuse of the remainder of the Fannie Mae building that fronts Wisconsin Avenue Northwest.

“Our plan is to convert that into either cultural and art uses and maybe residential, or it could be a hospitality high-end hotel and spa,” Lake said.

Renderings also show several other new buildings on the site, though no decisions have been made about the mix of uses.

“We are excited to be part of the redevelopment of this distinct site,” said Ralph Uttaro, senior vice president of real estate for Wegmans. “The District of Columbia is an ideal market for us and we look forward to serving new customers and offering a unique shopping experience there,” he said.

Wegmans will be a welcome addition to the neighborhood, according to Ward 3 Council member Mary Cheh.

“Sometimes, my residents are hesitant to embrace new business, but not this time. Wegmans’ values are in strong alignment with those of this District, and I look forward to welcoming this new community partner to Ward 3,” she said.

Roadside’s acquisition of the Fannie Mae headquarters, at 3900 Wisconsin Ave. NW, includes 10 acres of land and the original buildings that were constructed by Equitable Life Company in 1958 and 1962.

Fannie Mae is moving to its new headquarters at 1100 15th St. NW in about two years. Roadside expects to begin the site’s redevelopment immediately after Fannie Mae relocates.

Roadside’s development team includes D.C. architect firm Shalom Baranes Associates and Michael Vergason Landscape Architects.

Roadside’s past projects include CityMarket at O in Shaw and CityLine at Tenley in Tenleytown.




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After Complaints, Fannie Mae Will Stop Selling Homes to Vision Property

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Are Fannie Mae and Freddie Mac Poised to Jump on Strong Housing Trends?

In this segment from Market Foolery, the team reaches into the mailbag to tackle a question from a German listener. Axel wants to know whether signs of strength in the U.S. housing market could make Fannie Mae (NASDAQOTH:FNMA) and Freddie Mac (NASDAQOTH:FMCC) attractive investment opportunities. Tune in to learn more.

A full transcript follows the video.

This video was recorded on May 15, 2017.

Chris Hill: Email from Axel Bruckner in Germany: “I heard you speaking recently about good indicators for a strong U.S. housing market in the future, so I’m curious how you would evaluate Fannie Mae and Freddie Mac. The upside for these stocks seems tremendous compared to the risk.” What do you think, Jason?

Jason Moser: I would actually probably beg to differ there. I guess, maybe, he’s thinking upside compared to risk, and risk meaning that these are companies that are more or less underwritten by the U.S. government. So, yeah, from that perspective, the risk is, generally speaking, probably pretty low. But I think understanding what these companies do, they make their money from, essentially, fees and net interest margins, so they’re more or less like a bank. But they’re not stocks that trade on any underlying business fundamentals. I think they tend to trade more on who’s in office, and what court ruling recently went in their favor or in someone else’s favor.

So to me, they’re not really businesses as much as they are necessary entities, and we’re trying to figure out where they fit in our housing market going forward. Because clearly, something went wrong not too terribly long ago. I think when we look at housing in general, the housing opportunity for investors is absolutely a must in the portfolio. You look at that as one of the bigger picture plays that you need to have in your portfolio one way or another. I would not look at one of these two businesses as a way to do that. I think if you’re concerned with one of these businesses, I don’t know why you wouldn’t just pick a big bank, because then at least you have a bank that’s going to be based on profits, and you’re going to see dividends, and stocks that trade a bit more on fundamentals. But I think the opportunity is there. If you look at home ownership rate here, going back to 2005, right about when it peaked, it’s been on a pretty steady decline since then.

Taylor Muckerman: Slow, yeah.

Moser: Yeah, it’s reverted all the way back to below where it was in 1995. So, I think there are plenty of opportunities. I think this notion that millennials are not buying houses is misguided. There is data to prove that they are. They’re certainly being a bit more particular, a bit more considerate when buying houses. But ownership is one of those things where, yeah, at 20 years old, you’re like, “No, I’m not going to buy a house, of course not, I’ll tell you I’m not going to buy a house,” but then life happens. When you hit 25 to 30 years old, things change. You don’t mean for them to change, they just do.

Hill: And that’s also one of those narratives that’s now four or five years old. There are stories that I’ve seen online that speak to that, they’re parroting that same line, and you read them and think, “I think you’re being kind of lazy.”

Moser: What do you mean, the line that millennials aren’t buying homes?

Hill: Yeah, like “That was the case five years ago and the data proved it, therefore I’m going to just repeat that line.” Maybe it’s time for some updated data.

Moser: Right. If millennials aren’t buying homes, you need to prepare for a home ownership rate more like 40%, and I’m just telling you, that’s not going to happen.

Muckerman: Yeah. They’re not getting the opportunity. It’s not that they don’t want to. A lot of new home builds are generally being priced mid-market to high-market now. They’re not really getting entry level prices to buy their first house. So they probably want to, but it’s a little bit more difficult for them to, because I think new builds are still pre-recession levels. It’s on an uphill slope right now. We’re still far, far behind in terms of opportunities to buy a brand new house for these folks. And some of the hotter cities where you’re seeing millennials move, they’re priced out of the market, and it’s become a rental society in a lot of these cities, with banks, after the recession, buying up a lot of the inventory and renting it out, and not offering these used homes for sale. And if you’re not building new homes, you’re stuck in limbo there.

Moser: Yeah, and the economics dictate it. It’s all about supply and demand, just like any other market. I was reading about this, I think it was in Minnesota, of all places, you’re seeing homes that are going on markets that, they don’t last but a couple of days on the market before they’re gone. Speaking from recently selling a townhouse of ours in Fairfax here, which is a pretty good sort of entry level price for this area, and I mean, this is an area where housing is a bit more expensive, our house was gone in less than a weekend, because the price was attractive. So you’re seeing, in areas where Millennials or first-time home buyers have that opportunity, they’re definitely jumping in there. And where there is lower supply, those home builders are going to come in and start building more for those types of buyers. So you look at all of the different ways you can participate in that market, and it’s anywhere from retail, like Home Depot, to something like Ellie Mae, which I’ve talked about a million times on our shows, taking a part of every loan that goes on out there, or something like a big bank where you can get that dividend in —

Muckerman: Timber companies, nice diversifier, softwood lumber.

Moser: Yeah, material suppliers. I look at something like Freddie Mac or Fannie Mae, and I think, well …

Muckerman: There’s better options out there.

Moser: Way, way better options.

Hill: I do, however, like how Axel is thinking about it, just in terms of the upside relative to the risk. Regardless of whatever stock you’re looking at, that’s a great exercise to go through.

Moser: No question.

Freddie Mac: Mortgage Rates Edged Back Down; 30-Year Still Pinned At Around 4.0%

Mortgage rates edged back down during the week ended May 18, with the average rate for a 30-year fixed rate mortgage (FRM) at around 4.02%, down from 4.05% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.

A year ago at this time, the 30-year FRM averaged 3.58%.

The average rate for a 15-year FRM was 3.27%, down from 3.29% the previous week. A year ago at this time, the 15-year FRM averaged 2.81%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.13%, down from 3.14%. A year ago at this time, the five-year ARM averaged 2.80%.

“The 30-year mortgage rate fell three basis points this week to 4.02 percent,” says Sean Becketti, chief economist, Freddie Mac, in a statement. “However, this week’s survey closed prior to Wednesday’s flight to quality. The delayed impact of the associated decline in Treasury yields may push mortgage rates lower in next week’s survey.”

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