March 22: Weekly Real Estate News and Information

March 22: Weekly Real Estate News and Information

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The CE Shop and REAL Buzz Online are excited to share the forth issue of our new feature. Every Wednesday REAL Buzz Online will be inviting guest bloggers to share their expertise with you. This week we have a leader in the real estate information industry and a long time partner of The CE Shop, REAL Trends. You can learn more about REAL Trends or read more stories by visiting REALTrends.com.

by: REAL Trends, a trusted source in real estate news and information

Mortgage fraud declining

Nationwide, one in every 200 residential loans funded last year, totaling $14 billion, involved fraud, according to First American CoreLogic. Despite what looks like an unsettling amount of shadiness lurking within the mortgage market, the company says the fraud rate has been steadily declining for the past three years and is now about 25 percent lower than when it peaked in the third quarter of 2007.

Since then, First American notes, lenders have been more aggressive in curtailing mortgage fraud. According to the company's latest findings, the states where the highest number of fraudulent loans were found included California, Florida, Georgia, North Carolina, and South Carolina.

Based on First American's trend analysis, the highest risk ZIP codes in the United States for fraud are Jamaica, New York; Orlando and Miami, Florida; Atlanta, Georgia; and Detroit, Michigan. These cities have an average fraud rate three to four times the national level.

First American CoreLogic says 25 percent of foreclosures show fraud in the initial application, and as much as 70 percent of early payment defaults show indications of fraudulent activity in the application process.

First American CoreLogic's full report will be released later this month.

Source: DSNews.com, Carrie Bay, (03/19/2010)

Fannie Mae reports on activities in 2009, changes outlook for 2010

In two separate reports released this week, Fannie Mae took a look at the past and made predictions for the future. The government-sponsored enterprise (GSE) released Helping Housing Recover: A Report on Fannie Mae's Mission Performance, describing the company's efforts to provide liquidity, stability, and affordability to the nation's housing finance system.

According to the report, Fannie Mae provided $823.6 billion in funding to help keep the single-family and multi-family mortgage markets operating during 2009.

In Fannie Mae's March 2010 Economic Outlook, released by the GSE's Economics & Mortgage Market Analysis Group, continued recovery in housing is the key to a durable economic recovery. Fannie Mae said home sales will likely fall further in February, suggested by a sharp decline in the pending home sales index in January.

The GSE estimated that total mortgage originations would decline to $1.31 trillion in 2010, down from a projected $1.97 trillion in 2009, with a refinance share of 44 percent. Fannie Mae expects home sales to rebound in the second quarter. In the third quarter, the GSE expects a "payback," as the tax credit will likely pull some of the demand forward. And by the end of the year, if the labor market improves as expected, sales should start to trend up on a sustainable basis.

For all of 2010, Fannie Mae projects total home sales will increase 9 percent, down from the 12 percent surge predicted in its previous forecast.

Source: DSNews.com, Brittany Dunn, (03/19/2010)

Short-sale incentives start April 5th

Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer. That's the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.

Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.

Source: The Wall Street Journal, June Fletcher (03/19/2010), National Association of Realtors

REAL Trends has been a trusted source for useful, timely and trusted information for over twenty years. They offer research and relevant information for every real estate professional.