First American Offers Flat Fee on REO Management Service
This looks to be a good program for the REO market at the moment. With the large shadow inventory in the U.S. Fees for doing real estate transaction can really become a nuisance if a property does not sell quickly.
First American Outsourcing and Technology Solutions is offering a flat-fee package for managing, maintaining and selling REO property, in what they say is a first for the industry.
The business-outsourcing provider is a member of the First American Corp.. Depending on the mixture and prices of the assets in the portfolio, the fixed price on the referral fee could push down expenses even further, according to First American.
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U.S. Home Prices Up 5% Year-Over-Year
With jobless claims going down, consumer spending up and home prices rising, this may be a sign of an actual recovery. To be sure, we still have need to see large gains in the job market to really believe we will have a sustained and durable recovery.
Let us not forget if we look at the U6 unemployment number, we have over 15% unemployment and that represents discouraged workers that have given up looking for work. Once jobs start being created rapidly, those workers are going to re-enter the labor market and that will but a strain on the recovery. We are walking a fine line right now and hopefully we can get through this without creating another bubble.
DS News - New data released by Clear Capital Thursday shows that home prices nationally are up 5.0 percent compared to February 2009. The quarter-over-quarter price change for the numbers through last month was flat at 0.0 percent, indicating a softening during the winter months.
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Goldman Sachs Board Rejects Shareholder Demands on Pay Restrictions
No surprise this request from Goldman shareholders fell on deaf ears. This issue will only be settled in the courts. Goldman has a reputation of lavish compensation and that creates an environment that makes smart people who want to work hard and make oddles of cash. That could be the reason why the board didn’t want to do anything that could possible tarnish that image regardless of the the public opinion is off their compensation.
Wall Street Journal - Goldman Sachs Group Inc. said its board of directors rejected demands from shareholders that the investment bank investigate excessive compensation and take steps to recoup some awards given to executives.
The company reported in a filing with the Securities and Exchange Commission that it received several letters from shareholders asking for the firm to revamp the way it pays out salaries, benefits and compensation. Goldman’s board “rejected the demands,” according to the filing.
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Donald Kohn to Leave Fed at End of Term as Vice Chairman
Who Obama chooses as his replacement will be very important and is to be watched. Vice Chairman Kohn has been an establishment at the Federal Reserve for over four decades. Even though I personally have issue with many of the policies responses in crisis, Donald does have a wealth of knowledge after being near the helm for over 40 years and they will lose some of that wisdom when he steps down at the end of his term. Mr. President choose wisely, the markets will be watching very closely.
Vice Chairman of the Fed
Business Week - Donald Kohn will leave the Federal Reserve at the end of his four-year term as vice chairman after helping Ben S. Bernanke and Alan Greenspan steer the U.S. through recessions and crises.
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U.S. Consumer Spending Increases 0.5%
This is a sign people are feeling a little bit more confident. Not only did consumer spending rise, but the savings rate when down at the same time. Overall we need to increasing savings and investments in the United States and get our federal and state budgets in order. Too long we have relied on borrowed money and consumer spending to fund our GDP. Regardless, this news is a good sign and if we see jobs started to be created then we will be going in the right direction again.
Wall St. Journal - Americans spent more in January than expected but growth of their income was weak, while a gauge of inflationary pressure within the slowly recovering economy rose at a slower rate.Separately, the expansion at U.S. manufacturing firms softened in February but remained very broad based, according to the Institute of Supply Management’s survey released Monday.
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Freddie Mac ends buying interest-only loans in September
It is surprising Freddie was actually purchasing these loans in the first place. I would automatically assume a interest only mortgage was not used by a first time home buyer and more likely used by a speculator that was assuming appreciation through a refinance or flip on the sale. Maybe I am wrong but that seems pretty close to the case. We do not need to be using taxpayer money to support this type of activity. We need to help people trying to stay in there home that intend to stay there.
Reuters - Freddie Mac, the second largest purchaser of U.S. residential mortgages, said on Friday that it would stop buying and securitizing all interest-only mortgages because of the poor performance of those loans.
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U.S. existing home sales fall 7.2% to 7-month low
“It’s not good news,” said Lawrence Yun, chief economist for the real estate industry lobbying group. “There is rising concern about the strength of the housing recovery.” This is what I have been thinking for some time, with the amount of support we have in the system and high unemployment. We need to work on creating jobs that provide an income that will support and mortgage payment and property taxes.
Resales of U.S. homes and condos fell 7.2% in January to a seasonally adjusted annual rate of 5.05 million, the lowest in seven months, raising concerns about the durability of the housing recovery, the National Association of Realtors reported Friday.
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