Realtors®, House Financial Services Committee Reach Agreement to Move Key Flood Insurance Legislation Forward

WASHINGTON, July 20, 2017 /PRNewswire/ — The National Association of Realtors® today said that significant improvements to the “21st Century Flood Reform Act,” key legislation aimed at strengthening and reauthorizing the National Flood Insurance Program, have cleared the way for endorsement of the bill. Among the changes, Realtors® support the House Financial Services Committee’s commitment to retaining “grandfathering” – a policy that protects homeowners from significant rate increases when a flood map changes.

The most recent draft will also limit proposed increases to fees and rate hikes that policyholders faced under previous iterations of the legislation. Earlier versions of the legislation included more dramatic cost increases for homeowners and eliminated grandfathering protections beginning in 2021.

NAR President William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties, thanked the committee for working with Realtors® to strengthen the bill and announced NAR’s support for it:

“House Financial Services Committee Chairman Jeb Hensarling (R-Texas), as well as Subcommittee on Housing and Insurance Chairman Sean Duffy (R-Wis.), deserve high praise for working with Realtors® to improve this legislation. The changes to the 21st Century Flood Reform Act will help give certainty to homeowners who have brought their property to code and have done their part to protect it against flood risk. It’s a fair and reasonable approach that recognizes the need for accessible, affordable flood insurance, while taking us one step closer towards reauthorization.

“This legislation protects taxpayers, as well as homeowners, which is no easy task. The September 30 reauthorization deadline still looms in front of us, and Realtors® are eager to see this legislation progress quickly. Leaders on both sides of the aisle are well aware that this issue touches 22,000 communities – in every state, both coastal and inland. We’re grateful for the committee’s support and look forward to their continued efforts on behalf of homeowners.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the “News, Blogs and Video” tab on the website. 

 

View original content with multimedia:http://www.prnewswire.com/news-releases/realtors-house-financial-services-committee-reach-agreement-to-move-key-flood-insurance-legislation-forward-300491922.html

SOURCE National Association of Realtors

Related Links

http://www.realtor.org

Realtors®, House Financial Services Committee Reach Agreement to Move Key Flood Insurance Legislation Forward

WASHINGTON, July 20, 2017 /PRNewswire/ — The National Association of Realtors® today said that significant improvements to the “21st Century Flood Reform Act,” key legislation aimed at strengthening and reauthorizing the National Flood Insurance Program, have cleared the way for endorsement of the bill. Among the changes, Realtors® support the House Financial Services Committee’s commitment to retaining “grandfathering” – a policy that protects homeowners from significant rate increases when a flood map changes.

The most recent draft will also limit proposed increases to fees and rate hikes that policyholders faced under previous iterations of the legislation. Earlier versions of the legislation included more dramatic cost increases for homeowners and eliminated grandfathering protections beginning in 2021.

NAR President William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties, thanked the committee for working with Realtors® to strengthen the bill and announced NAR’s support for it:

“House Financial Services Committee Chairman Jeb Hensarling (R-Texas), as well as Subcommittee on Housing and Insurance Chairman Sean Duffy (R-Wis.), deserve high praise for working with Realtors® to improve this legislation. The changes to the 21st Century Flood Reform Act will help give certainty to homeowners who have brought their property to code and have done their part to protect it against flood risk. It’s a fair and reasonable approach that recognizes the need for accessible, affordable flood insurance, while taking us one step closer towards reauthorization.

“This legislation protects taxpayers, as well as homeowners, which is no easy task. The September 30 reauthorization deadline still looms in front of us, and Realtors® are eager to see this legislation progress quickly. Leaders on both sides of the aisle are well aware that this issue touches 22,000 communities – in every state, both coastal and inland. We’re grateful for the committee’s support and look forward to their continued efforts on behalf of homeowners.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the “News, Blogs and Video” tab on the website. 

 

View original content with multimedia:http://www.prnewswire.com/news-releases/realtors-house-financial-services-committee-reach-agreement-to-move-key-flood-insurance-legislation-forward-300491922.html

SOURCE National Association of Realtors

Related Links

http://www.realtor.org

Fannie Mae: Slowdown Likely in Second Half

Expectations for 2017 economic growth remain at 2.0% amid a projected second-half slowdown, according to the Fannie Mae Economic Strategic Research (ESR) Group’s July 2017 Economic and Housing Outlook.

line_graph Fannie Mae: Slowdown Likely in Second Half

With the expansion having entered its ninth year, incoming data point to a second-quarter economic growth rebound to 2.7% annualized, up from 1.4% in the first quarter. However, the full percentage-point rise in the saving rate since December signals increased caution among consumers, despite elevated consumer confidence. Also, decelerating corporate profit growth, commonly seen in the late stages of an expansion, presents a challenge to business investment that is compounded by tax policy uncertainty.

In addition, residential investment will likely contribute less to second-half growth due to lackluster homebuilding activity and tight for-sale inventory that is restraining home sales. Consequently, second-half growth is expected to slow slightly to 1.9%.

Moderate growth is expected to continue in 2018, with potential changes to fiscal and monetary policy posing both upside and downside risks to the forecast.

“While second-quarter growth is poised to rebound, we expect growth to moderate through the remainder of 2017,” says Fannie Mae Chief Economist Doug Duncan. “Consumer spending, traditionally the largest contributor to economic growth, is sluggish and is lagging positive consumer sentiment and solid hiring. While labor-market slack continues to diminish, wage growth is not accelerating and inflation has moved further below the Fed’s target.”

In terms of housing specifically, Duncan says “construction activity has lost some steam following the first quarter’s weather-driven boost.”

“Meanwhile, very lean inventory continues to act as a boon for home prices and a bane for affordability, particularly among potential first-time homeowners. According to our second quarter Mortgage Lender Sentiment Survey, lenders expect to ease credit standards further. However, we continue to project that the pace of growth in total home sales will slow to 3.3 percent this year, as we believe rapid home price gains amid scarce supply will remain a hurdle for potential homebuyers despite improvements in credit access.”

 

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Fannie Mae: Economic expansion to slow in second half of 2017 …

Economic growth is set to remain at 2% for the year as the high growth in the first half of the year is expected to slow.

Economic data shows growth rebounded to 2.7% annually, up from 1.4% in the first quarter, according to Fannie Mae’s economic and strategic research group’s July 2017 Economic and Housing Outlook.

Fannie Mae explained the full percentage point increase since December signals a growing caution among consumers, despite the high levels of consumer confidence.

“While second quarter growth is poised to rebound, we expect growth to moderate through the remainder of 2017,” Fannie Mae Chief Economist Doug Duncan said. “Consumer spending, traditionally the largest contributor to economic growth, is sluggish and is lagging positive consumer sentiment and solid hiring.”

“While labor market slack continues to diminish, wage growth is not accelerating and inflation has moved further below the Fed’s target,” Duncan said. “These conditions support our call that the Fed will continue gradual monetary policy normalization, announce its balance sheet tapering policy in September, and wait until December for additional data, especially on inflation, before raising the fed funds rate for the third time this year.”

Decelerating corporate profit growth, which is commonly seen in the late stages of an economic expansion, presents a challenge to business investment. Businesses are also concerned with the rising uncertainty of tax reform.

Residential investment will likely decline in the second half of the year due to the lackluster homebuilding activity and tight inventory which continues to hold back home sales.

Because of these factors, Fannie Mae predicts economic growth will slow to 1.9% for the second half of the year. And this moderate growth is expected to continue into 2018 as potential changes to fiscal and monetary policy posing both upside and downside risks to the forecast.

“Construction activity has lost some steam following the first quarter’s weather-driven boost,” Duncan said. “Meanwhile, very lean inventory continues to act as a boon for home prices and a bane for affordability, particularly among potential first-time homeowners.”

“According to our second quarter Mortgage Lender Sentiment Survey, lenders expect to ease credit standards further,” he said. “However, we continue to project that the pace of growth in total home sales will slow to 3.3% this year, as we believe rapid home price gains amid scarce supply will remain a hurdle for potential homebuyers despite improvements in credit access.”

Fannie Mae to ease lending standards: What’s that mean for homebuyers?

On July 29, Fannie Mae will activate an update to “Desktop Underwriter,” the software that analyzes borrower applications and grants approval — “DU” in shorthand spoken with reverence or disgust throughout the industry. This update will make it easier for us to approve loans.

You can hear the music already. “Easier? These idiots should be folded up. Get government out of lending.” Even those not quite so opposed to government are uneasy that Fannie (and Freddie) are still wards of the U.S. Treasury and taxpayer, have no capital, no cushion for loss, have guaranteed $6 trillion in loans already, and nobody in either political party knows what to do with them. And the housing market and entire U.S. economy depend on them.

Deep breath, please.

The most important specific easing will be an expansion of the maximum debt-to-income ratio (DTI) from 45 percent to 50 percent. That is, gross monthly pre-tax income times 50 percent will be the new maximum for monthly debt pa…

Pillar Provides Freddie Mac Loan for Richmond Community – Multi

Pillar Financial, a division of SunTrust Bank, has originated a $10.4 million Freddie Mac loan on behalf of a local private investment group for the acquisition of Falling Creek, a 31-building multifamily community in Richmond, Va.

Falling Creek is located at 2530 Marina Drive in the Bellwood submarket and features 348 one- and two-bedroom units, as well as four retail spaces. The community situated over 15 acres features private balcony/patios and private entries, air conditioning, high-speed internet access, laundry facilities and grade-level parking. Falling Creek benefits from easy access to interstates 95, 295 and 288 and is close to public transportation.

The asset is 97.4 percent occupied, Yardi Matrix data shows. In the past five years, the occupancy rate ranged between 96.3 and 97.8 percent.  

According to Yardi Matrix, the asset last traded in 1991, when Property Capital Group paid $6 million for it to an undisclosed seller. The community, built in 1964, became in 2008 subject to a $6 million loan held by a private lender, having its due date in June 2019.

Financing Details

The floating rate 7-year term loan with a 30-year amortization schedule was originated by Cullen O’Grady, vice president of Pillar’s Bethesda office on July 11, 2017.

Our client was very pleased with this transaction due to the fact that we originated an 80 percent loan-to-value (LTV) with 24 months interest only, allowing the sponsor to conduct their exterior and interior rehabilitation plans to revitalize and reposition the asset in the marketplace,” said O’Grady in a prepared statement. “Overall, Richmond is a growing market with a lot of potential for value-add and repositioning of Class B and C assets.

Images courtesy of Falling Creek website

Freddie Mac Prices $1 Billion Multifamily K-Deal, K-SW2, Backed by Properties Controlled by Starwood Capital Group

MCLEAN, VA–(Marketwired – Jul 19, 2017) – Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), backed by floating rate multifamily mortgages with ten-year terms. The company expects to issue approximately $1 billion in K Certificates (K-SW2 Certificates), which are backed by 36 properties indirectly controlled by Starwood Capital Group. The K-SW2 Certificates are expected to settle on or about July 28, 2017.

K-SW2 Pricing

Details

  • Co-Lead Managers and Bookrunners: Morgan Stanley Co. LLC and Wells Fargo Securities, LLC
  • Co-Managers: Barclays Capital Inc., CastleOak Securities, L.P., Jefferies LLC, and J.P. Morgan Securities LLC

Related Links

The K-SW2 Certificates will not be rated, and will include one senior principal and interest class, one interest only class, and one class that will receive static prepayment premiums. The K-SW2 Certificates are backed by corresponding classes issued by the FREMF 2017-KSW2 Mortgage Trust (KSW2 Trust) and guaranteed by Freddie Mac. The KSW2 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-SW2 Certificates. The K-SW2 Trust Class B, C and R Certificates will not be guaranteed by Freddie Mac.

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

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, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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, 2016, 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 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 FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Housing And Real Estate News 7-19-2017 (Video)

We discuss the Housing Market Index, the Mortgage Applications Data, plus Housing Starts and Housing Permits Data along with a report from the National Association of Realtors in this video.

The San Francisco Real Estate Bubble probably bursts the same time Tech Stocks Crash like in 2000. We get slightly conflicting data on the San Francisco Real Estate Market over the last six months thinking that the market has finally peaked, but the latest California Association of Realtors report still points to an overheated market that just will not retreat meaningfully right now.

Pasadena-Foothills REALTORS Young Professionals Network Launches Union Station Fund-raising Drive

In collaboration with Union Station Homeless Services, the Pasadena-Foothills Association of REALTORS® Young Professionals Network (YPN) will host a fund-raising drive on Saturday, August 5th at the Union Station Adult Center in Pasadena located at 412 S. Raymond.

Commemorating the second annual California Association of REALTORS® YPN Month of Giving, the Pasadena-Foothills Young Professionals members will volunteer their services by donating and serving lunch at the center.

In preparation for the drive they are requesting donations for the following unused men and women items:

• Socks
• White T-shirts (medium-XXL)
• Underwear (medium-XXL)

“The 2017 PFAR YPN committee chose this event because we believe in helping people who are less fortunate, who do not have the same advantages we have. Volunteer work at the Union Station Adult Center not only allows us to serve and donate to these people, it allows us to engage with the individuals who are on the receiving end. We have found that communities must contribute to these efforts as not everyone has the same chance for opportunity and many have lost the ability and support to survive on their own,” said YPN Co-chairs, Joseph Haggerty and April Kass.

“Our committee has participated with this and other related efforts in the past years and we look forward to future opportunities to assist and serve our community.”

The deadline to drop off all donated items is Friday, August 4th by 12 p.m. at the Pasadena-Foothills Association of REALTORS® office located at 1070 East Green Street, Ste 100, 91106.

All items received will be donated to the Pasadena Union Station Adult Center.

More information about the fund-raising drive and upcoming Young Professionals Network events can be found at the Pasadena-Foothills Association of REALTORS® website: www.pfar.org.

About the Pasadena-Foothills Association of REALTORS

Founded in 1907, the Pasadena-Foothills Association of REALTORS® has built a reputation as being one of the strongest real estate associations in the nation. Serving the communities of Pasadena, Altadena, San Marino, South Pasadena, La Cañada Flintridge, La Crescenta and Sunland-Tujunga, the Association’s goals are to promote success for its members and preserve real property rights, while enforcing the Code of Ethics of the National Association of REALTORS®. Over the years, the Pasadena-Foothills Association of REALTORS® has expanded its mission to serve as a constructive force in the improvement of the quality of life within the community. Visit us on the web at www.pfar.org. Follow us on Twitter: @PFAR_Alerts

 

 

 

 

 

 

 

 

Fannie Mae maintains 2017 economic growth outlook


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Fannie Mae has maintained its 2.0% growth forecast for the economy this year – but it still expects growth to slow down during the last six months at 1.9%

The tempered forecast is driven largely by the savings rate increase since December, decelerating corporate profit growth coupled with tax policy uncertainty, and lackluster homebuilding activity and restrained home sales, according to the Fannie Mae’s July 2017 Economic and Housing Outlook.

Expectations for second quarter were more positive, as the government-sponsored enterprise said growth during that period will rebound to 2.7% annualized, an increase from the 1.4% rate a quarter prior. The nation is expected to sustain moderate growth in 2018, as potential changes to fiscal and monetary policy pose upside and downside risks to the forecast.

“While labor market slack continues to diminish, wage growth is not accelerating and inflation has moved further below the Fed’s target. These conditions support our call that the Fed will continue gradual monetary policy normalization, announce its balance sheet tapering policy in September, and wait until December for additional data, especially on inflation, before raising the fed funds rate for the third time this year,” said Fannie Mae chief economist Doug Duncan. “Construction activity has lost some steam following the first quarter’s weather-driven boost,” Duncan continued. “Meanwhile, very lean inventory continues to act as a boon for home prices and a bane for affordability, particularly among potential first-time homeowners.”

In terms of total home sales, Duncan said Fannie Mae continues to expect the figure to slow to 3.3% in 2017 given rapid gains in home prices and scarce supply, and despite mortgage lender expectations to further relax credit standards.


Related stories:
Housing sentiment rises for third straight month – Fannie Mae