Scotsman Guide - July 2009 Residential Edition

By Tony Stasiek, editor

July long has been a fairly chill month, in which the strongest advocacy positions come regarding decisions to replace patio-furniture cushions or to make the case that the half-day Friday really includes part of Thursday. Or all of it.

That means 12.07 percent of all loans were delinquent or facing foreclosure procedures, The New York Times reported. In the fourth quarter of 2008, 11.93 percent of all mortgages were in distress.

Ah, the decadent days of The Old Economy.

In the Past Month News from the industry and abroad

MBA: More than 5 million home
loans in distress in 1st quarter

WASHINGTON, D.C. — The Mortgage Bankers Association reported a record 5. 4 million U.S. home loans were in distress in the first quarter of this year.

The average score fell six points to 651, USA Today reported.

Photo: Heather Trimm

This July is a bit different. Hot on the heels of the National Association of Mortgage Brokers collecting comments about the Home Valuation Code of Conduct (BTW: We just uploaded our interview with the Federal Housing Finance Agency on this topic; listen in at scotsmanguide. com/3632. More from the agency: Page 14), the Federal Trade Commission (FTC) is accepting public comment on two mortgage-related rule-making proceedings. Both impact entities the FTC oversees, and both can impact you and your clients.

“It does not appear the level of mortgage defaults will begin to fall until after the employment situation begins to improve,” said Jay Brinkmann, the association’s chief economist.

The crux of these proceedings — Mortgage Assistance Relief Services Rulemaking, Rule No. R911003 (online: bit.ly/R911003) and Mortgage Acts and Practices Rulemaking, Rule No. R911004 ( bit.ly/R911004) — is fraud in loan-modification and foreclosure-rescue services. With the Mortgage Bankers Association reporting that single-family delinquencies, foreclosure inventories and loans past due hit record highs in the first quarter, many companies have sprouted up to address and potentially remedy borrowers’ issues. Some are good. Some aren’t.

Average U.S. credit
score drops to 651

CHICAGO — The average U.S. credit score dropped sharply in the six-month period ending this past March 31, credit-tracking bureau TransUnion said.

The FTC’s question: How can it protect consumers from the bad ones? It’s accepting public comments on fee-related issues through July 15 at https://secure.commentworks.com/ftc-mortgageassistance reliefservices and on servicing and “activities that occur throughout the life cycle of a loan” through July 30 at https://secure.commentworks.com/ftc-mortgageactsandpractices.

Credit scores dropped furthest in states where the housing market fell furthest, slipping 11 points in Arizona and 10 in California, TransUnion said.

If you or your clients have opinions and experiences to share, this might be the time. If you’d merely like to ensure your borrowers are properly informed, you also have options: The Office of the Comptroller of the Currency has an online tip sheet you can share for how consumers can avoid loan-mod and foreclosure-rescue scams, bit.ly/OCCtips.

April home sales up from
March, down from April ’08

WASHINGTON, D.C. — New- and existing-home sales in the United States increased this past April compared to March but remain far below the rate of 2008, the U.S. Commerce Department and National Association of Realtors reported.

New-home sales reached a seasonally adjusted annual rate of 352,000, 34 percent lower than a year ago. The median sales price of a new home sold in April was $209,700 with an average price of $254,000.

tony@scotsmanguide.com

Sales of existing single-family homes, townhomes, condominiums and co-ops reached an annual rate of 4.68 million units in the month, down 3. 5 percent from a year ago.

Scotsman Guide congratulates its staff on its recent awards from the American Society of Business Publication Editors and the Society of Professional Journalists.

The Realtors association said the total housing inventory represented a 10.2-month supply at the current sales rate, up from 9. 6 months after March’s sales readings. Pending home sales, meanwhile, increased 6. 7 percent in April.

Next Month

… in August’s Scotsman Guide

■ A Q&A with NAMB President Jim Pair
■ Marketing tactics for today’s economic
conditions

Marketing customer service is important in today’s real estate market. Setting yourself apart from your competition is the best way to gain attention. To produce results, brainstorm internally to determine consumer needs, identify your target market, research media outlets and track your investment. Know in what areas to concentrate funds to affect your business positively.

Builder confidence increases,
with low mortgage rates cited

WASHINGTON, D.C. — The National Association of Home Builders (NAHB) said builder confidence improved in May, with the Housing Market Index increasing two points to 16.

■ Breaking down the Secure and Fair
Enforcement for Mortgage Licensing Act

“Builders are responding to what they perceive to be some of the best home-buying conditions of a lifetime,” NAHB Chairman Joe Robson said.

■ A look at the hard-hit housing market in
California’s capital

… and much more

With historically low mortgage interest rates, affordable prices and a large amount of homes on the market, “[consumers] have a very appealing set of reasons to make a move,” he said.