Real Estate Information Exchange news you can use!
o They can still post filings w/ the SEC
o Investors will be able to buy & trade on the over-the-counter bulletin board (I attached a definition)
o Trading on the over-the-counter bulletin board will cause the trading volume will drop, prices will deteriorate further, price volatility will increase it will become more difficult to trade a large number of stocks
· Housing starts fall
o Housing starts in May fell 10% from April (but up 7.8% from this time last year)
o Building permits are down 5.9% from April (but up 4.4% from this time last year)
o Builder confidence is dropping due to problems with obtaining financing, faulty appraisals, competition from short sales & foreclosures
· Senate approves extension of Tax Credit Closing Deadline because of backlog of closings due to close by June 30th…homebuyers and lenders now have until September 30th to close on their properties!
· Bank of America has converted an additional 16,000 homeowners from trial to permanent loan mods this past month….bringing its total to 70,000!
o HAMP is B of A’s biggest effort and have completed 71k non-HAMP mods so far this year
o Total delinquency rate (according to Moody’s) among 2005-2008 subprime loans peaked at 54.4% in Jan. 2010 and since then the rate has began to decline and as of April is 51.5%
o 24% of delinquent borrowers in Feb were current in March
o Expect that 50-70% of permanent mods will eventually default…wow! Because negative equity is such a significant driver of default (the level will depend heavily on the successful implementation of principal forgiveness)
· VA Dept of Health recommends denying 2 applications for a Haymarket Hospital – just so you know what is happening in our area…
· RIS Social Media conference…lots of good information, you have to leverage social media in your business… it’s the future. If you would like to learn a few tips, set up a time to meet with me!
· Josh Burruss of Potomac Mortgage Group briefed us on what’s happening in the mortgage side of things. New Disclosures! Undisclosed Debt Disclosures and New Debt Acknowledgement at Closing form. Credit will be pulled for FHA borrowers 3 days prior to closing and these forms have to be signed confirming that no new debt has been incurred during the time period while we wait for closing. This can hurt a lot of buyers whose credit scores are one or two points away from being in the poorer credit zones. Stay tuned as things seem to change daily.