Credit standards going easy on jumbo mortgages

home_money

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

New Listing: Great Location Near “The Grove”

127 N. Gardner St. Los Angeles, CA 90036

004

005

008A

011

013

025

026A

Offered at $1,279,000

3 Bedrooms

2 Bathrooms

2,312 Sq. Ft.

5,984 Sq. Ft. Lot

THIS AUTHENTIC 1926 TWO-STORY 3-BEDROOM/2-BATHROOM SPANISH HOME IS LOCATED IN ONE OF LA’S HOTTEST NEIGHBORHOODS: IT’S AROUND THE CORNER PAN PACIFIC PARK AND JUST DOWN THE STREET (BETWEEN BEVERLY OR 3RD)FROM THE GROVE

SET ON A KNOLL WITH A GATED DRIVEWAY BACKYARD, THIS GORGEOUS HOME CONTAINS ENVIABLE DESIGNER FINISHES INCLUDING IMPORTED ANTIQUE FRENCH TERRACOTTA TILES, TURKISH TRAVERTINE, & HAND-PAINTED FLOURISHES. THE HOUSE’S DRAMATIC ENTRY FOYER OPENS TO AN IMPRESSIVE STEP-DOWN LIVING ROOM WITH A TWO-STORY WOOD BEAMED CEILING, REFINISHED ORIGINAL WOOD FLOORS, STONE FIREPLACE, AND CLASSIC SPANISH PICTURE WINDOW LOOKING OUT OVER THE GRASSY FRONT YARD.

THE RESIDENCE’S FORMAL DINING ROOM IS LIGHT, BRIGHT, AND EXQUISITELY ELEGANT. A LARGE CHEF’S KITCHEN SPORTS A VERSAILLES-PATTERNED TRAVERTINE FLOOR, FARM SINK, JERUSALEM GOLD LIMESTONE COUNTERTOPS, AMPLE CUSTOM CABINETS (WITH SELF-CLOSING DRAWERS), PREP SINK (PERFECT FOR FEEDING THE PUPS, TOO), AND TOP-OF-THE-LINE APPLIANCES (INCLUDING FISHER & PAYKEL DUAL-DRAWER DISHWASHER).

THE HOME’S FAMILY ROOM FEATURES A BUILT-IN ENTERTAINMENT CENTER AND SLIDING FRENCH DOORS TO THE BACK YARD.

THERE ARE 2 LARGE BEDROOMS UPSTAIRS (THAT SHARE ONE BATH), ONE OF WHICH HAS A CHARMING BALCONY AND WALK-IN CLOSET. THERE IS ONE BEDROOM (WITH DIRECT ACCESS TO A BATH ON THE GROUND LEVEL.

IT’S AN ENTERTAINER’S PARADISE OUTSIDE IN BACK: A PERGOLA-COVERED PATIO, LOUNGING & DINING AREAS, POOL AND SPA, AND OUTDOOR SHOWER.

WITH A WALK SCORE OF 97 (OUT OF 100), HEAD OUT ON FOOT TO THE FARMER S MARKET, SHOPPING ON BEVERLY, SOME OF L.A.’S BEST RESTAURANTS ON 3RD, AND THE EXPANSIVENESS OF PAN PACIFIC PARK. EVEN LACMA IS A STROLL AWAY!

Please contact me at (310)402-8181 begin_of_the_skype_highlighting (310)402-8181 FREE  end_of_the_skype_highlighting or Jkryukova@gmail.com for more information, questions, showings.

WeHo

WeHo

West Hollywood offers a gorgeous living experience

West Hollywood (WeHo) offers a unique living experience with a variety of famous restaurants and shops as well as eccentric nightlife. The rich history of WeHo characterizes it as one of the best places to live in the Los Angeles Area.

Chateau Marmont

Chateau Marmont

The suburban community has a population of over 34,000 people located in Los Angeles and is nearby cities like Beverly Hills, Hollywood Hills, Los Feliz, Westwood, and Santa Monica.

WeHo

Sunset Blvd. in WeHo

With household sale prices increasing by 3.8 percent compared to the last quarter, and 17.6 percent compared to last year, now is the time to buy. Interest rates are lower than ever, and home prices are starting to rise. The number of home sales is up 6.6 percent. The average listing price for homes for sale  was over $1.1 million for the last week of October. Now is the best time to lock in those interest rates and invest in a WeHo home.

West Hollywood

WeHo offers the best WalkScore in all of California based on its walkability. This is perfect for those of you looking to have a fun night out and who want to leave the car behind or for those of you who love the city life.  With Santa Monica Boulevard, the Sunset Strip, Melrose Avenue and Beverly Boulevard, there is ample supply of art, dining, and nightlife available.

Distinct architecture, famous music venues, elaborate hotels, and a number of celebrity hangouts make WeHo a notable area.

Sunset Plaza

Sunset Plaza

WeHo offers lots of things to do and is a great place to live if you seek entertainment. Comedy clubs like the Laugh Factory can be found throughout the area. The epicenter for designer showrooms and unusual exhibits can be found at the Pacific Design Center. And if that isn’t enough of a wow factor, historic celebrity mansions can be found in the area.

Pacific Design Center

Year-over year US home prices up sharply in November

U.S.  home prices in November extended their steady recovery from the housing bust,  rising 7.4 percent compared with a year ago. It was the biggest year-over-year  increase in 6½ years.

CoreLogic,  a private data provider, said Tuesday that prices also rose 0.3 percent in  November from October. The month-to-month figures are not seasonally adjusted.  CoreLogic compiles its indexes by tracking sales of the same homes over time,  using data on sales in all 50 states.

The  gains in home prices have been widespread across most of the country. And  CoreLogic forecasts that prices will increase 6 percent this year.

Prices  in November were higher than in November 2011 in all but six states. And only 13  of 100 large cities that CoreLogic studies reported year-over-year price  declines. That was down from 20 cities in October.

The  sharpest increases were in Arizona, Nevada and Idaho. North Dakota and  California rounded out the top five.

Steady  price increases are helping fuel the housing recovery. They’re encouraging some  people to sell homes and enticing would-be buyers to purchase homes before they  get more expensive. Rising prices also reduce the number of homeowners who owe  more on their mortgages than their homes are worth.

“All  signals currently point to a progressive stabilization of the housing market and  the positive trend in home price appreciation to continue into 2013,” said Anand  Nallathambi, CEO of CoreLogic.

Despite  the gains, home prices nationwide are still nearly 27 percent lower than in  April 2006, when prices peaked during the housing bubble.

Some  of the biggest gains have been in states that were hurt the worst. Prices in one  of them, Arizona, have jumped nearly 21 percent in the past year, the most of  any state. But prices in that state are still nearly 40 percent below  their peak.

And  prices in Nevada have risen 14.2 percent in the past year but remain 53 percent  below peak levels.

The  states where prices continue to fall include Delaware, where they are 4.9  percent below a year ago, and Illinois, down 2.2 percent. Connecticut, New  Jersey, Rhode Island and Pennsylvania are also reporting declines.

Prices  rose 24 percent in Phoenix in the past 12 months, the most of any large metro  area. Riverside-San Bernardino, Calif. was next with a 9.7 percent rise. It was  followed by Los Angeles, where prices rose 8.4 percent.

Source: Sfgate.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.

Bill would encourage foreigners to buy U.S. homes

American consumers and the federal government haven’t been able to bail out the sinking U.S. real estate market. Now wealthy Chinese, Canadians and other foreign buyers could get their chance.

Two U.S. senators have introduced a bill that would allow foreigners who spend at least $500,000 on residential property to obtain visas allowing them to live in the United States.

The plan could be a boon to California, which has become a popular real estate market for foreigners, particularly those from China.

Nationwide, residential sales to foreigners and recent immigrants totaled $82 billion in the 12-month period ended March 31, up from $66 billion the previous year, according to the National Assn. of Realtors. California accounted for 12% of those sales, second only to Florida.

“Overall, Los Angeles is the perfect place for investors,” said YanYan Zhang, an agent with Rodeo Realty in Beverly Hills, who travels to China several times a year to meet potential clients.

Sandra Miller, a broker at Engel & Volkers in Santa Monica, an international real estate firm that caters to foreign clients, said about 10% of the luxury market now is composed of foreign investors. She estimated that offering them U.S. visas would triple that figure, as well as help sales elsewhere.

“California, Florida, New York, Colorado, Hawaii and Texas — those states will see a huge increase in demand,” she said. “The whole Westside would certainly benefit.”

The bipartisan proposal, part of a package that also would make it easier for international tourists to visit the U.S., is similar to an existing program that puts foreigners on a fast track to a green card if they invest at least $500,000 in an American business that creates at least 10 jobs.

“Many people want to come and live in the United States,” said Sen. Charles Schumer (D-N.Y.), who introduced the legislation Thursday along with Sen. Mike Lee (R-Utah). “They will be here spending money and paying taxes, and the most important thing is they’ll sop up the extra supply of homes we have right now compared to demand, and that’s what’s dragging our economy down.”

The legislation would create a new homeowner visa that would be renewable every three years, but the proposal would not put them on a path to citizenship. To be eligible, a person would have to buy a primary residence of at least $250,000 and spend a total of $500,000 on residential real estate. The other properties could be rented.

The program would come with several restrictions.

The purchase would have to be in cash, with no mortgage or home equity loan allowed. And the property would have to be bought for more than its most recent appraised value, Schumer said.

The buyer would have to live in the home for at least 180 days each year, which would require paying U.S. income taxes on any foreign earnings. Buyers would no longer be eligible for the temporary visa if the property were sold.

The buyer would be able to bring a spouse and minor children to live in the U.S. but would need to apply for a work visa to hold a job. Neither the buyer nor dependents would be eligible to receive Medicaid, Medicare or Social Security benefits.

“The bill does not limit people from being productive,” Schumer said. “It simply prevents them from coming here and taking jobs that otherwise would go to Americans.”

Billionaire investor Warren Buffett and others have advocated boosting the U.S. economy by attracting foreign investment.

The Visa Improvements to Stimulate International Tourism to the United States of America Act, or VISIT-USA Act, aims to do that by also making several other changes to visa policies.

Among them are allowing Chinese tourists to receive a five-year visa that permits multiple visits. They now must apply for a new visa every year. Canadians would be allowed to stay in the U.S. for more than 180 days without having to obtain a visa.

Schumer and Lee have lined up support from the U.S. Chamber of Commerce, the U.S. Travel Assn. and the American Hotel & Lodging Assn. Schumer said he was working to get the backing of the Obama administration, which received the bill’s details Thursday.

“For too long, we have created barriers, and too many hoops and hurdles, which act to deter visitors from other countries coming to the United States to spend their money and create jobs,” said Chamber of Commerce President Thomas Donohue. “This is a loss we can ill afford in today’s economy.”

Robert Toll, executive chairman of Toll Brothers Inc., a Pennsylvania builder of luxury homes, joined Schumer on a conference call with reporters to back the foreign home-buyer proposal. He said it was no different from tax breaks designed to attract businesses.

Lee described it as a free-market way to boost demand in the real estate market after “big-government programs have failed to work.”

10.21.11 http://www.latimes.com/business/la-fi-visas-home-buyers-20111021,0,6715779.story

New addendum could help appraisers give credit for green features

The three-page Appraisal Institute form should guarantee at the minimum that an
appraiser will take notice of a home’s energy improvements and seek to come up
with a value adjustment for local market conditions.

Here’s some good news for homeowners who’ve installed energy-saving features
but haven’t been sure appraisers will credit them with higher valuations: Thanks
to a new industry-issued appraisal addendum, the odds have improved that such
upgrades get the fairer market value they’re due.

The Appraisal Institute, the country’s largest and most influential association in
its field, published the long-awaited addendum late last month. It’s designed to
be attached to any standard appraisal report covering a property with
significant green features. Owners, sellers, buyers, refinancers and realty
agents don’t have to wait for an appraiser to use it. They can download it at no
cost and ask that it be made part of the appraisal submitted to the lender.

 

The new addendum won’t guarantee you that the appraiser will raise your
property value by the tens of thousands of dollars you spent on your solar panel
array, high-efficiency windows or geothermal system. But it should guarantee at
the minimum that he or she will take notice of the energy improvements and seek
to come up with a value adjustment for your local market conditions.

The three-page form is a response to growing concerns that although the Obama
administration and many state governments and utilities are pushing homeowners
to invest in energy-conserving components, standard appraisal forms — including
those used by financing giants Fannie Mae and Freddie Mac — are not set up to give adequate

recognition to those often costly improvements.

The inevitable result: Owners are frustrated at what they consider lowball
valuations. Refinancers can’t get the loan amounts they seek because the
appraisal report doesn’t factor in the monthly utility savings they’re getting
from their solar panels. Appraisers, for their part, say local real estate
listing documents often don’t spell out in detail all the energy-efficiency
improvements or they get the facts wrong.

For example, appraisers complain that some realty listings claim that the
house is an “Energy Star Home” when in fact there’s nothing more than a few
Energy Star appliances installed in the kitchen. The Energy Star Home
designation is a much higher standard: It requires qualifying under a
comprehensive set of criteria for the lighting, windows, water heating and
high-efficiency appliances, among others.

The institute’s addendum runs the gamut of improvements and ratings, and goes
well beyond energy efficiency. Though it has basic sections covering insulation,
windows, lighting, heating, air conditioning and solar, it also covers
sustainability features such as the presence of water-saving or reclamation
systems, landscaping that lowers either water or energy use, and even the
presence — or lack — of public transportation nearby that might help lower fuel
usage.

Of special significance to owners who have had their houses audited or rated
for green features and energy efficiency, the addendum asks for detailed
information on the rating or auditing entity, the dates of the rating, average
utility costs in the area and estimated monthly savings based on the rating
itself.

Any certifications such as LEED (Leadership in Energy and Environmental
Design) must be attached to the report along with information on any changes
made by the owners to the property since the certification. If the house has
solar installations, the addendum asks for such details as the age of the
panels, the energy production in kilowatt hours for each array, and other
information relating to the energy savings attributable to the solar
features.

Appraisers using the new addendum should now be better equipped to identify
accurate, recent “comparable” sales in the area — a key part of coming up with a
valuation, according to Joseph C. Magdziarz, 2011 president of the institute. In
other words, if you have a highly efficient, audited house with extensive
energy-saving features as demonstrated by the addendum, an appraiser should look
for prices of houses that sold recently with and without energy-efficiency
features for indications of your home’s true market value.

Appraisers who have training in green valuations can also use one or more
techniques that essentially capitalize the documented monthly savings on utility
bills into a specific value adjustment appropriate for the local market. Sandra
K. Adomatis, an appraiser in Punta Gorda, Fla., who teaches green appraisal
courses and is a nationally recognized expert, said the higher the utility
charges in a jurisdiction, generally the higher the value gain from solar panels
and other energy-saving installations. For instance, in a relatively
high-utility-cost state such as California, said Adomatis, the value increment
from the same improvements might be double that in a relatively low-cost state
such as Florida.

The addendum is available at the Appraisal
Institute site, at http://www.appraisalinstitute.org

 

Source: Latimes.com 10/9/11

By Kenneth R. Harney

Russian Heiress Sells Recently Bought Hollywood Hills Home for $19.5M!

Art patron Dasha Zhukova, the girlfriend of Russian oil billionaire Roman Abramovich, has sold the Los Angeles home she bought for $19.5 million in January 2010, for the same price.

The Hollywood Hills property, on just over an acre, wasn’t on the market. The property has a six-bedroom, Tuscan-style home of about 9,700 square feet. Ms. Zhukova  had attempted, unsuccessfully, to acquire two adjoining properties, one of which remains on the market for $18 million, say people familiar with her real-estate dealings. Ms. Zhukova, whose father is Russian oligarch Alexander Zhukov, runs Moscow’s Garage Center for Contemporary Art and co-owns fashion label Kova & T. She no longer edits the British fashion magazine Pop. A spokesman for Ms. Zhukova declined to comment.

Judy Feder of Nourmand & Associates represented Ms. Zhukova and James Hancock of Coldwell Banker Previews International represented the buyer, whose identity could not be learned.

PRIV_PROP2

PRIV_PROP2

Jon Huntsman Sr. Cuts Price on Utah Resort Property

Billionaire Jon Huntsman Sr. has lowered the asking price on his Deer Valley, Utah, retreat. The 64-acre property in the ski-resort area was originally listed for $55 million in 2009; with about four fewer acres, it’s now offered for $42.8 million.

The founder of chemical maker Huntsman Corp. bought the property in 1986 as a retreat for his nine children—including Ambassador to China Jon Huntsman Jr.—and their families. (Speculation is growing that the younger Jon Huntsman could become a 2012 Republican presidential hopeful.) He built the 22,000-square-foot, 12-bedroom home from timber reclaimed from Yellowstone National Park. The home has an indoor pool and a 22-car garage. The land is zoned for development.

The new price is “more realistic,” said Deedee Corradini of Prudential Utah Real Estate, the former listing agent; she remains involved with the property. Paul Benson and Shane Herbert of Summit Sotheby’s International Realty have the listing.

Photos

[SB10001424052748704071704576277143734324326]

Wm MacCollumSam Nazarian’s home

Nightclub Owner Nazarian Sells

Nightlife entrepreneur Sam Nazarian has sold his modern Los Angeles home for $14.5 million, 24% off its 2009 asking price of nearly $19 million. Mr. Nazarian, whose SBE Entertainment owns nightclubs, restaurants and hotels, bought the Hollywood Hills home in 2004. The three-story, three-bedroom home of about 6,300 square feet has views to the ocean. The deck has a pool, kitchen and fire pit.

The buyer, Toronto mining executive Stan Bharti, plans to use the house as a family vacation home. Mr. Nazarian is in contract to buy a house in the Hollywood Hills for around $6 million; he says he’s spending less time in L.A. Jade Mills of Coldwell Banker Previews International represented Mr. Nazarian and Kathy Villa and Asher Dann of the same firm represented Mr. Bharti.

Source: www.wsj.com by Juliet Chung 4/21/11