Credit standards going easy on jumbo mortgages

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Demand for non-government loans keeps growing!

Despite overall originations hitting the lowest level since 2010, the past year witnessed a significant increase in the volume of home equity loans and lines of credit, in addition to originating the best-performing mortgages on record, the first report from Black Knight Financial Services, previously known as Lender Processing Services, found. For jumbo mortgages, however, it’s a completely different story.

Two key points about the November numbers stand out according to Herb Blecher, senior vice president of Black Knight Financial Services’ data & analytics division.

“First is that heightened credit standards have resulted in this year being the best-performing vintage on record. Even adjusting for some of these changes, such as credit scores and loan-to-values, we are seeing total delinquencies for 2013 loans at extremely low levels across every product category,” Blecher said.

The second point Blecher emphasized was that overall volumes are down. “We are seeing an increased proportion of the market being supported by non-agency (vs. government) lending – with the share nearly doubling as compared to 2010,” Blecher added.

However, increasing home prices have helped offset some of the drop in originations with demand for home equity loans increasing.

“While first mortgage originations are almost half the levels as one year ago, total home equity lending, including loans and lines, has increased by 70%, and originations of second lien home equity loans have more than doubled,” Blecher said.

In addition, the market also observed a 75% year-over-year increase in the share of non-agency jumbo prime lending.

“Notably, nearly all of these jumbo loans have been originated with no mortgage insurance, which may indicate an increased appetite for risk, as well as an opportunity to expand credit criteria, for originations within the private market,” Blecher explained.

The November data revealed that the population of “refi” mortgages has decreased by about 4 million loans since the end of 2012.

In comparison, just 5.9 million loans meet broad-based refinance criteria. But loosening the credit standards to just a 700 FICO increases the refinance population by almost 17%, or an additional 1 million loans.

If you’re looking to lease, purchase, or sell residential or commercial property, please contact me direct at (310)402-8181 begin_of_the_skype_highlighting (310)402-8181 FREE  end_of_the_skype_highlighting or jkryukova@gmail.com

Source: Housingwire

Fed attempts to free higher-priced loans from appraisal binds

A proposed rule was issued by six federal financial regulatory agencies that would create exemptions from specific appraisal requirements for a subset of higher-priced mortgages.

The proposed exemptions would save borrowers both time and money as well as promote the safety and soundness of creditors.

The Dodd-Frank Act imposed appraisal requirements for high-priced mortgages. Under the act, loans are deemed “higher-priced” if they are secured by a consumer’s home and have interest rates above a certain threshold.

The rule proposed would allow the following three types of higher-priced mortgage loans to be exempt from the Dodd-Frank Act appraisal requirements: loans of $25,000 or less, certain streamlined refinancing and certain loans secured by manufactured housing.

In January, the Federal Reserve Board, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency issued a final rule implementing the new Dodd-Frank Act appraisal requirements.

As of January 18, 2014, compliance with the final rule will become mandatory. The agencies listed above are jointly issuing the proposed rule on additional exemptions in response to public comments received previously.

Public comments are encouraged by the agencies on all aspects of the proposal. The public will have until September 9, 2013, to review and comment on most of the proposal. However, comments linked to the proposed Paperwork Reduction Act analysis will be due 60 days after the rule is published in the Federal Register.

 

 

Source: Housingwire.com

Fannie Mae: Economy Will ‘Reaccelerate’ in 2nd Half of 2013

Fiscal drags such as the sequester may have weakened economic momentum, but the economy should “reaccelerate” in the second half of this year as financial and housing conditions improve, according to Fannie Mae’s Economic and Strategic Research Group.

In its most recent economic outlook, the group revealed expectations for the economy to continue the modest recovery and grow 2.2 percent this year, up from 1.7 percent in 2012 and 2 percent in 2011.

“Employment numbers are getting better, albeit it at a relatively slow pace, and the April employment picture should help boost consumer sentiment toward the economy overall. Spending grew in the first quarter at a surprisingly strong pace, and although this rate is unlikely to hold up, consumers continue to show signs of resilience in the face of fiscal concerns,” said Doug Duncan, chief economist for Fannie Mae.

Duncan though warned of “potential” headwinds, such as the “long-term effects of sequestration, spending constraints, the sovereign debt crisis, and the impending debt ceiling.”

Amid the expected improvements, the group anticipates the housing market’s recovery will go on as well, reinforced by current levels of home affordability.

According to the GSE’s analysis, housing affordability should steadily decline from its 2012 peak, but will still hover above normal levels through 2017. By that time, the group expects the 30-year fixed rate mortgage to average 5 percent.

While affordability provides support to the housing market’s recovery, it’s not the main driver of homebuying activity, according to the GSE.

“Going forward, the trends in lending standards, regulations regarding lending and securitization of mortgages, and housing finance reform will be key to a transition to normal for the housing market,” the group stated.

Home prices should also continue their upward trajectory, aided by limited inventory, a smaller share of distressed sales, and increased efforts to prevent foreclosures.

Looking ahead, the group forecasts single-family starts will increase 24 percent this year, while multifamily starts will rise by about 35 percent during the same time period.

Total home sales—new and existing—are expected to increase by nearly 8 percent in 2013, while home prices should average a 3.9 percent gain.
The 30-year fixed rate mortgage is projected to average 4 percent in 2014.

 

If you’re looking for real estate opportunities, please contact me direct at (310)402-8181 or jkryukova@gmail.com

 

 

Source: DSNEWS

Prime Beverly Hills Penthouse – Private sale $1,349,000

Palm Penthouse

Elegant top floor 3 bedroom view penthouse in prime Beverly Hills! Impressive dimensions at 2,621 sq. ft, extra wide hallways, and tons of skylights make this space feel like a single family home.  Large eat in kitchen with breakfast nook, updated stainless appliances, and a large window allow for plenty of cooking and storage space.  How often do you see a top floor unit that shares no walls at all with its’ neighbors?  Asking price $1,349,000

  • 3 bedrooms
  • 2.5 bathrooms
  • 2,621 sq. ft
  • Skylights throughout
  • Wide hallways, high ceilings
  • Impressive master suite with fireplace, large windows, private patio, tons of closet space, vanity area, double sinks, separate tub and shower
  • Large updated kitchen stainless appliances and eat in nook
  • Oversize open concept living room with short windows
  • Washer and Dryer inside the unit
  • 3 assigned parking spaces side by side
  • Enormous private storage space
  • Secure entry, private elevator
  • Honey hardwood floors, brand new lush carpet in the bedrooms

Please contact me for details and private showings.  Property is located North of Burton Way, West of Doheny Drive in Prime Beverly Hills, CA 90210.

 

Palm1 Palm2 Palm3 Palm Penthouse Beverly Hills for sale

JUST LISTED AT $499,000! 999 Doheny Dr. #902 West Hollywood, CA 90069 – Chic condo with unbelievable views!

999 Doheny Drive

FANTASTIC OPPORTUNITY TO LIVE IN THE PRESTIGIOUS DOHENY WEST TOWERS! THE CONDO
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SOUGHT AFTER DOHENY AND SUNSET LOCATION.

RELAX AFTER A LONG DAY ON THE LARGE, BEAUTIFUL PATIO WITH STUNNING VIEWS ALL THE WAY TO THE OCEAN, THE HOLLYWOOD HILLS AND THE FAMOUS SUNSET STRIP.

UPDATED KITCHEN OPENS INTO THE LIVING SPACE
AND PATIO, ALLOWING FOR COMFORTABLE INDOOR AND OUTDOOR LIVING.

STUDIO CONVERTED INTO A COMFORTABLE 1 BEDROOM, AMPLE CLOSET SPACES, AND FULL BATHROOM WITH PLENTY OF STORAGE AND COUNTER SPACE!

$499,000

$520 Monthly Dues

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Please contact Julie Kryukova at (310)402-8181 or jkryukova@gmail.com for showing and questions.

999 Doheny #902 #2 999 Doheny #902 #3  999 Doheny #902 #5 999 Doheny #902 #6 999 Doheny #902 #7 999 Doheny #902 #9  DSC_0012 DSC_0013 DSC_0015 DSC_0016 DSC_0018 DSC_0019   DSC_0038 DSC_0039 DSC_0040 DSC_0042 DSC_0043  exterior lobby lobby2

 

Report: Home Prices Poised for Growth in 2013

In stark contrast to this time last year, the housing market is chugging into 2013 with a head of steam.

Home-listing prices were up 5.1% nationally in December on a year-over-year basis, according to data released Thursday by real-estate listings and data company Trulia. Out of the 100 major metro markets covered by the report, 82 of them saw year-over-year gains. At the end of 2011, asking prices had fallen 4.3%, and only 12 markets had posted positive price changes.

“Prices are going into 2013 with strong tailwinds,” said Jed Kolko, chief economist for Trulia. He cites a general strengthening of the job market, which in turn means more families able to cover a sizeable down payment. An increase in household formation, which is also the product of improving job prospects, and home construction could further bolster demand.

Mr. Kolko notes that the sharpest tightening of inventory is taking place in Western states. Four of the top 10 cities to see the largest asking price recovery were in California, including Oakland, San Jose, Sacramento and Fresno.

Las Vegas, which was hit hard after the bubble burst, came in at the top of the list with a 16.3% year-over-year listing price increase. In the same period in 2011, prices dropped 11.2%.

To be sure, even among the markets with major gains, some are better positioned for a sustained housing recovery than others.

While Las Vegas may have seen the largest asking price turnaround, it remains far below pre-bust levels. The problem, Mr. Kolko says, is that the market remains unstable, with high vacancy rates, lingering foreclosures and subpar job growth.

On the other hand, metros like Seattle, which came in second on the list of cities with the highest asking-price recovery, are on a smoother path to growth because of their strong economic fundamentals, he said.

Meanwhile, rents rose nationally 5.2% in the same period. In 17 of the 25 biggest rental markets, home prices are rising faster than rents, according to Trulia. Whereas ownership was typically more affordable than renting in most markets in recent years, as sales demand rises, that edge is becoming less apparent, Mr. Kolko said.

Housing industry recovering faster than many economists expected!

Housing is snapping back faster than many economists had expected, with home builders stepping up production of new homes nationally and fresh foreclosures in California falling to their lowest level since the early days of the bust.

Demand for housing has surged as interest rates have plummeted and home prices in many markets appear to have bottomed, particularly in states such as California where inventories of foreclosures and other lower-priced homes have sunk. The turnaround in prices and record-low supply of newly built homes also are luring builders back after six years of pain.

“The numbers are strong in September, and that is definitely a positive sign,” said Celia Chen, a housing economist with Moody’s Analytics. “It is confirmation that housing is lifting off the bottom.”

Residential construction starts rose 15% nationally last month from August to their highest annual rate in more than four years. A separate report showed that the number of troubled California borrowers entering foreclosure hit its lowest level in the third quarter since the dawning of the mortgage meltdown.

If the gains in housing hold, they could give consumer confidence a boost and help the broader economy recover. Housing has played an important part in lifting the nation out of past downturns but was hampered this time by the severity of the Great Recession and the huge number of vacant and foreclosed homes dragging down the market for years.

Now rising prices are helping homeowners in properties that for several years have been underwater, in which the house wouldn’t bring enough in a sale to pay off the mortgage. Rising values could play a role in lifting household finances if families feel more secure about the direction of the economy.

Any positive economic news presumably would be a boost for President Obama‘s reelection campaign, though both he and Republican challenger Mitt Romney have largely avoided a detailed debate on housing policy. Many on the left have said that Obama’s tepid and patchwork response to the housing downturn resulted in a slower recovery while the right has decried his policies as interventionist failures.

Michael D. Larson, a housing and interest rate analyst for Weiss Research, said the Federal Reserve‘s policies to keep mortgage interest rates low and Obama’s foreclosure prevention efforts have played some role in the recovery — but the improvements can mostly be attributed to natural market dynamics.

“It is certainly encouraging; housing has been this lead anchor around the economy’s neck,” he said. But “most of this is just the passage of time. I think if the Fed or the government had done absolutely nothing … we still would have seen some demand return.”

Several recent trends have underscored improvement in housing. Nationally, home builder stocks are up, prices have begun a modest recovery, and sales of newly built and previously owned homes have risen.

The Commerce Department reported Wednesday that construction of houses and apartment buildings rose in September to a seasonally adjusted annual rate of 872,000, marking the third straight month of improvement. The figures surpassed economists’ expectations of about a 770,000 annual rate.

September had the best monthly performance since July 2008, when housing starts were on an annual pace of 923,000. Compared with September 2011, new housing starts jumped 34.8%, the Commerce Department said.

Last month’s growth was “surprisingly strong,” said David Crowe, chief economist at the National Assn. of Home Builders. “As consumer confidence rises and jobs return, more local markets and more consumers will join the buyer market, and I expect housing construction to continue a modest but fairly steady rise throughout 2013 and into 2014.”

The annual rate of new home groundbreaking still is far below the peak of more than 2.2 million units reached in early 2006 during the housing bubble. But the pace has picked up dramatically from the low of 478,000 in April 2009, and is up sharply from the 706,000 annual rate in May. Building permits for private housing construction, a sign of future activity, also jumped in September, up 11.6% from August and 45.1% from a year earlier. The annual rate in September was 894,000 building permits.

Patrick Newport, an economist with IHS Global Insight, said the increases were likely due to gains in household growth after years of people doubling or tripling up to wait out the worst of the downturn.

“What’s kicking in right now is simply the demographics,” Newport said. “We have been building at too low a rate for four years, and so demand has been suppressed because of the recession, and now it is starting to kick in.”

On the other side of the housing pipeline, the shortage of cheaply priced homes in California appears poised to continue. The number of Californians entering foreclosure dropped in the third quarter to its lowest level since early 2007, according to a report from real estate firm DataQuick. Foreclosure filings have fallen as banks work toward completing more loan modifications and short sales. An improving economy and rising prices have also helped.

“Prices in most areas today are up significantly from their low point in early 2009,” said John Walsh, president of DataQuick. “Additionally, during the past year, we’ve seen short sales overtake the foreclosure process as the procedure of choice to deal with homeowner distress.”

Notices of default fell 10.2% from the prior quarter and 31.2% from the same period last year, DataQuick reported. A total of 49,026 notices of default — the first stage of foreclosure in California — were filed on homes in the Golden State last quarter.

That was the lowest number since the first quarter of 2007, and a 63% decline from the first quarter of 2009, when notice of default filings peaked in the state.

The number of homes lost to foreclosure rose 5% from the prior quarter and dropped 41% from a year earlier. A total of 22,949 homes were lost to foreclosure last quarter.

Source: LA Times

Adrienne Maloof Lists Beverly Hills Mansion Amid Divorce!

SELLERS: Adrienne Maloof and Paul Nassif
LOCATION: Beverly Hills, CA
ASKING PRICE: $26,000,000
SIZE: 8 bedrooms, 11 bathrooms

L.A.-based businesswoman Adrienne Maloof of The Real Housewives of Beverly Hills fame and her Beverly Hills plastic surgeon husband Paul Nassif have listed their humongous, gilt-trimmed Richard Landry-designed faux-French chateau in the guard-gated Beverly Park community on the market with an asking price of $26,000,000.

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THE TEN COMMANDMENTS When applying for a Mortgage!!

When applying for a mortgage, certain rules must be followed so that you are able to secure financing and successfully close escrow:

1) Thou shall not change jobs, become self-employed or quit your job. When applying for a mortgage, job consistency and security are one of the key elements of the approval process. If you change jobs, you have to have worked at least 30 days and provide a paystub verifying at least a 30 day history. If you change the method of employment, wage earner to self employed or commissioned, you may not be able to verify any income because the mortgage guidelines require a minimum of a 2 year history.

2) Thou shall not buy a car, truck or van (or you may be living in it)! This is a big deal. If you are approved for a mortgage loan and then buy a car, the added debt if you finance the car may make your commitment invalid. When qualifying for a mortgage, your income vs. your debt is analyzed, we actually check your credit right before closing and we require you to explain any inquiries on your credit report in writing as to who inquired, why and whether new credit was extended as a result of those inquiries.

3) Thou shall not use charge cards excessively or let your accounts fall behind. Since your credit report is what is used to verify your credit worthiness, your willingness to pay back the mortgage loan, your credit another key component to your mortgage approval. The higher your credit score the more likely you will get approved and the credit score will determine what interest rate you are qualified for.

4) Thou shall not spend money you have set aside for closing. Buying a home is costly, between the down payment and your closing costs. Before you enter into any real estate transaction your mortgage professional should give you a good estimate of how much money you will need to close.

5) Thou shall not omit debts or liabilities from your loan application. Getting a mortgage today is not like it was in the olden days (like prior to 2008), so if you omit debts or liabilities, we will find out about it. We do many background checks and verifications prior to closing a loan.

6) Thou shall not buy furniture or appliances on credit before the close of escrow. Any added debt can affect you qualifying for your loan. If we discover this prior to closing on that last minute credit check your rate and approval can be affected.

7) Thou shall not originate any inquiries into your credit. Same as above, this can cause your credit score to be affected and thus affect your rate and approval.

8) Thou shall not make large deposits without first checking with your loan officer. All Large deposits need to explained and verified. It is not good enough to say that someone returned a loan, or it was cash in the house or someone gave it to you without verification, documentation and written explanations. Banks want to make sure that you are not taking on additional debt, if these deposits were loans. It doesn’t matter how good your credit is, how much money that you have in the bank or how much you earn all large deposits are verified.

9) Thou shall not change bank accounts. If you need to change accounts, discuss it with your loan officer. This creates a paperwork nightmare. We have to verify the withdrawal and deposit into a new account. The most important thing to watch out for is that many banks put a hold the initial deposit, even if it is a certified or bank check for 10 business days and this can affect your ability to get a certified check for your closing and you may have to delay your closing.

10) Thou shall not co-sign a loan for anyone. A cosigned loan is the same as your loan. The debt is on your credit as if it was yours. It affects your borrowing ability. After a year’s time most lenders will accept 12 months canceled checks from the other party and then the debt will not affect you except if it is delinquent.

 

For all of your real estate needs, please contact me at (310)402-8181 or jkryukova@gmail.com

www.juliekproperties.com

Ready to Buy? Five Steps in Getting Ready to Buy a Home!

Image The road to homeownership, AKA securing a mortgage or pre-approval letter, is paved with … paperwork.

First, avoid surprises—especially unpleasant ones—by getting your credit reports/FICO scores before the first sit-down with a banker. You are entitled to a free annual one. Check with any of the big three credit bureaus (Equifax, Experian or Transunion).

Proof of employment is next. Advise your boss to expect a verification of employment form. You will also need to submit two weeks’ to a month’s worth of pay stubs.

To prove that you can pay back the loan, banks want to see how much money you earn regularly. That means two years of federal tax returns and W-2s.

What you owe—and yes, lenders will ask—is the flip side of income. Outline your expenses, which most definitely include monthlies for rent, utilities, that new car, credit cards, child support, etc.

Asset verification requires documentation, too. This includes at least three months of bank statements. Investment accounts with bonds, stocks, mutual funds, etc. are also part of this, as are the titles of any cars you own if they are less than five years old. That you have funds for the security deposit is required, too.

The lender will also want a fully executed Purchase & Sale Agreement (signed and initialed by buyer and seller). Make certain the property address is correct.

Don’t forget the obvious: a valid ID and your Social Security number.

Final tip: Never turn in originals, and keep a copy of every piece of paper you send out so when the inevitable call arrives: “I don’t have…”, you will.