frankgaray: (May 27, 2010 3:46pm)

Brian and I just did a presentation at a local Realtor board meeting. When they were announcing the tour properties, about half were REO/Short Sales and the other half were actual sellers. People are buying and selling homes. They always will no matter what happens. Real Estate will not come to a stand still ever.

frankgaray: (May 27, 2010 3:43pm)

I'm with you Valley Girl! Hello... 5.77 million last month. mope around and miss it or get out there and close it!

ValleyGirl: (May 27, 2010 3:41pm)

Kill your TV. Stop watching Fox News. Don't read the newspaper. Cuz guess what - it just isn't as bad as the media makes it sound. If you quit whining, put your head down and just get out there and kick some butt, I think you'll find there are plenty of well qualified, eager, intelligent and motivated buyers. Here is another surprise, there are plenty of normal sellers too. They aren't all in trouble, contrary to the media hype. The recession is pretty much over people. Just let it die. Pull the plug. Quit your belly aching. No more excuses. Get on with your lives and go make some money.

p.warrior: (May 27, 2010 2:13pm)

Look this may look and feel good but this is fool's gold. These sales are because of a government subsidy born of the stimulus. I can't understand why anyone who believes in free-market capitalism sees this or any government subsidized economic activity a good thing. If buying a house is a good thing for the individual, that purchase should be able stand on it's own. Why should the person who is unable or unwilling to participate in the housing market be forced to supplement (via our taxes) the purchases of those who are able or willing to incur the risk/investment? This goes for any so-called government subsidy of any type which includes education for instance. Why should your kid who has no interest in college but prefers to be an auto mechanic have to pay for my child's college loans/grants? If it has value to an individual then that person should pay for it rather than his neighbor for whom there is no value/benefit. It seems people are always eager to spend other people's money.

WashingtonRealtor: (May 27, 2010 10:37am)

Skin in the game ? If you are recently into a home and suddenly have to sell,,, for what ever reason your closing costs will consume 8-10% of the <Equity< in the deal... payments skipped, foreclosure started time goes by and 9-12 months of payments add to the negative equity picture. The only solution other than massive appriecation is large down payments, or 80/20 deals ? In other news... YSP vs SRP should they both be lumped into the same category ?

Utah Mortgage&amp;Real Estate Guy: (May 27, 2010 10:36am)

Addressing the Shadow Inventory many of you have referred to. The number I have heard is that for every 1 foreclosure 'FOR SALE' there is 3 sitting on the banks books. The concensus is that the banks don't want to flood the market with vacant homes. This may be true however it IS NOT THE PRIMARY REASON. Accounting principles changed by the FED and their monetary policy provisions are allowing the banks to show this 'shadow inventory' as LIQUID ASSETS. Furthermore, the banks can use the appraised value of the home when the Non-performing loan was Originated for determining the Asset's Value. This single accounting principal or guideline change is basically the only reason that every bank is not considered INSOLVENT. Typical Monetary policy is to be able to lend $10 for every $1 in LIQUID ASSETS. Mortgage Lending has been accepted at abouut 60/1. Without this guideline change, the Big 4 US Bank average is 501/1. Foreclosure supply will drive the price of Real Estate for many years!!

DonnyUtah: (May 27, 2010 10:32am)

Sassygirl, I think it is pretty obvious. Mr T is a wrestler. Wrestlers fight in a ring. Rings are what a groom puts on his brides finger. Brides often become mothers and mothers raise their children in homes. Most of us are here to help put people in homes so Mr. T is the clear figurehead for this episode of the daily. We can go one step further and surmise that some mothers are single mothers and might be low to moderate income which is the direct play into the FHA reference. So clearly… Mr. T represents our housing market! The mowhawk represents change, like our changing industry and the gold chains represent the stronghold that FHA has all of us under.

sassygirl: (May 27, 2010 10:13am)

I don't get the "Mr T" reference? Mother's day is long past and that video is so 70's... what am I missing?

DonnyUtah: (May 27, 2010 10:11am)

In 1984, he made a motivational video called Be Somebody... or Be Somebody's Fool!. He gives helpful advice to children throughout the video; for example, he teaches them how to understand and appreciate their origins, how to dress fashionably without buying designer labels, how to make tripping up look like breakdancing, how to control their anger, and how to deal with peer pressure. The video is roughly one hour long, but contains 30 minutes of singing, either by the group of children accompanying him, or by Mr. T himself. He sings "Treat Your Mother Right (Treat Her Right)", in which he enumerates the reasons why it is important to treat your mother right, and also raps a song about growing up in the ghetto and praising God. The raps in this video were written by Ice T.[citation needed] That same year he released a related rap album titled Mr. T's Commandments. Also in 1984, he starred in the film, The Toughest Man in the World.

Evil Genius: (May 27, 2010 9:29am)

On another note, I don't do FHA, yet have a client that I'm representing on a purchase and I set him up with an FHA lender. Here's the sitch: the buyer has been the tenant on a short sale. Once the offer was made and accepted by the short seller, no further rent payments were made. The seller did not want to collect and have to pay back the lender (B of A0 and B of A could not collect the rent either. (If they did, technically the loan would now be performing) Anyways the problem is that I have no proof of rent for the most recent 5 months, so I showed cancelled checks to this seller for 8 months and a VOR for the previous 4 months from a property manager giving me 12 consecutive months. I'm told the challenge is whether this is arm's length. It is arm's length. Underwriting is in a box. Any ideas? Thanks.

GODLIKE: (May 27, 2010 9:15am)

I'm having a little trouble feeling the love today too. It's as if you were reaching. Yes, things are cyclic and they'll get better, but better is a relative term. As a lender I'm now doing almost twice the work on the same loan so I'll never recover the time to be able to recover the money/hr. Also there's the new qualifying quidelines where, as Good Morning America reported, 1 in 3 homeowners can no longer afford the loan on the house they are living in. I soooo want it to be better, but we have some underlying regs that will prohibit much of a recovery for some time to come.

Evil Genius: (May 27, 2010 9:07am)

Alt A was the big culprit in putting the real estate market in the toilet. 580 credit, stated income or no income qualifying and 100% LTV should have never been in the same sandbox. 100% LTV means that borrower had nothing to lose walking away from a property under water. Flips and driving false ceilings on prices also had a big play (which is why the appraisal industry is under fire). Realtors telling their flip clients what they could make with no money down had a huge play in this. Obviously we can't narrow this down to 1 loan characteristic, but common sense sure went out the window. Stated income with reserves to 80% LTV is not bad with 680 scores. Sub prime for "isolated" credit challenges, not chronic bad credit was around for 25 years. It was the Alt "A" that did us in. rockypaulsen@blogspot.com Chanes are coming. Look for New Generation Lending.

Realist 1: (May 27, 2010 9:01am)

I usually agree what you guys are saying on the video, but not this time. The housing market is artificially propped up and the way it is propped up is by means of artificially limiting supply. This is because with a ton of printed up bailout money, Freddie, Fannie, Wells, B of A, Citi and Chase are withholding large amounts of inventory from the marketplace; some estimates are 70% of all foreclosure inventory. They are also manipulating the mortgage rates to keep them low via Quantitative Easing and the tax credit. So, yes, sales are up because of these factors, but the problem is not solved. There is no economic recovery, just putting band-aids on top of band-aids.

BoKnowsClosings: (May 27, 2010 8:52am)

@paris911-I agree that there is a shadow inventory (plus 2 more years of re-sets on the last of the 5/1 ARMs which could produce even more foreclosures) and that home prices will continue to be low/drop. However, that doesn't necessarily mean that people won't continue to buy houses--they are so far (thank goodness). Another issue is how busy all of us will be in July... no clue what will happen after the tax credit closings are finally completed. We'll see; I for one am optimistic (and I'm in ATL which was built upon the real estate industry-we're still hurting) but still nervous. And still working the phones, etc.!

BoKnowsClosings: (May 27, 2010 8:35am)

While we're not out of the woods yet, I feel that people out there 'shaking the trees' will continue to be successful. There are some positive signs and all we can do is be hopeful and keep working our butts off. As for Mr. T, here is his sage advice: http://www.youtube.com/watch?v=xx5p_wv_izo&feature=related

GODLIKE: (May 27, 2010 8:18am)

There IS a place and a need for stated income loans, but it's for self employed, commissioned, and contract workers who have a greater cash flow than the tax return would indicate. The old "OLD" way of allowing them for people with good credit and good reserves was the best way.

GODLIKE: (May 27, 2010 8:16am)

Trich is wasn't 100% loans per se that got us here. It was first a world economy that imploded but if you must attribute something to the 100% loans it was 100% loans that allowed stated income for people with stable incomes and low credit scores. Actually you could take the 100% part out of that sentence and just leave the stated income part and you'd be more right.

Ancient Appraiser (Retired): (May 27, 2010 8:15am)

Wanted to post update on Wells Fargo appraisal completed by what turned out to be an unlicensed individual and signed off by a FHA panel member. FHA appeared to not be concerned in the least – according to them unless the AMC complains it is not there problem. Rebuttal was sent to WF and they told me they would provide the appraiser (same appraiser) the information but if he has to change value (minimum $15,000 low) they wouldn’t be able to make the changes in time to close before the June 30 deadline for tax credit. This after I told them I consider the appraisal “Invalid”. Wonder why the market is spinning out of control?

GODLIKE: (May 27, 2010 8:14am)

I never knew Mr. T sang. Did you catch the middle hottie in his back up group. Great moves.

Paris911: (May 27, 2010 7:50am)

There will be a rumored Double Dip with the Real Estate industry. It would seem that the double dip was on the chart presented in your video 5/27/2010 - But it did not seem to go below the medial line. Did the last Real Estate Recession have the amount of Shadow Inventory that the banks are currently holding?

jcollins: (May 27, 2010 7:49am)

TRich 100% loans did not get us into this mess. They have been around for a long time. WHat got us here is the Low/no income loans. Yes a lot of them were 100%. But, if they had to actually qualify then we would not be here. It really does not mstter about skin in the game. If you equity is gone it is gone. The proof of this is pretty easy to see. Good people letting their homes go. It took a while to lose their equity, but now that they have they will let it go.

Real Estate Nate: (May 27, 2010 7:47am)

As a Keller Williams agent, I appreciate the Gary Keller reference! I just finished with BOLD training and over 100 agents in my class took an average of almost 13 listings and 10 purchase agreements in the last 8 weeks. Almost half of our class took place after the tax credit. The bottom line for agents AND mortgage professionals is that if you spend two solid hours a day calling prospects (either cold calling or past clients) you WILL have a great year. It's as simple as that!

rlee: (May 27, 2010 7:46am)

As much as we would all love the positive April sales numbers to be begining of a long happy upward trend, I would bet money that next month there will be a "Surprise" fall off in existing home sales. Now how do we short the market to take advantage of that announcement?

TRich: (May 27, 2010 7:35am)

Well Rural loan 100% proponents/advocates..How do you think we got in this mess? 100% financing- That's How. Why do you think that The Fed govt should throw more money into that black hole. The buyers have NO skin in the game. What do you think they are going to do if values decline after they buy? Just because you have a borrower who thinks this program is a great idea and you have a commission at stake does not mean that the loan should be done. How about renting and having a little money into the deal. I do not want to subsidize no money down deals. Get with it!! Thanks for the show guys. MUCH INFORMATION.

Spearo: (May 27, 2010 7:30am)

Just Frank is correct. Legislation regarding HVCC is being considered NOW so make yourself relevant and join CaCAP today. You can't wait for life to just happen. Get involved.

Nuke 'em Until They Glow and Shoot them In the Dark: (May 27, 2010 7:28am)

Cool Mr T. Don't Give me no Jibba Jabba!

mdeery: (May 27, 2010 7:19am)

I would love a celebrity boxing match between BA Baracas and Barney Frank, BA would kick his fat ass around the ring and and make Barney scream " I promise I will never hurt a poor wee gerbil ever again BA"

ChrisSorensen: (May 27, 2010 7:13am)

(Part 2)filling some of those homes with homeowners or will they become investment owned homes? I’d love some opinions.

ChrisSorensen: (May 27, 2010 7:12am)

Frank and Brian, I sure hope the 92 are correct. I agree it is an awesome time to buy, but as you guys mentioned it’s a personal recession and for the five to seven million that are hurting badly and are way over encumbered, one has to worry about the effects of them losing their homes on the minds of others. Anyone have any thoughts on Elizabeth Warren’s concern about the CMBS market? Also, what about Goldman Sachs and the Center For Responsible Lending’s prediction of 13 to 14 million homeowners falling 60 days or more behind on their mortgages over the next three to four years? Currently it’s 6.5 million. Another number I thought was interesting is that from 1940 to 2000, we averaged approx 56% homeownership. From 2000 to 2006 that number reached 69+%. This of course was largely based on Sub Prime and Stated Income loans, as well as the incentives originating from the CRA. Frank and Brian, or anyone, do you think we are going to have to end up with a group, which simply cannot be replaced? Meaning, we created too many buyers out of thin air and based on the fact that people actually have to qualify again, are we going to have a problem filling some of t

Bono Vox: (May 27, 2010 7:11am)

Dan, I think you're looking at surface numbers and are not digging deep enough. The avg FICO for FHA has gone up because client's with high scores are no longer able to do 80/20s,97s or 100% LTVs. Therefore, they go to FHA and boost the average. I may be misunderstanding, but your "underserved" sounds like folks with bad credit scores and therefore, bad credit. If they don't pay their bills, what right do they have to a home? The broker who would put a 550 score into a home isn't necessarily doing them a favor. I could see an argument for bringing back alt credit for folks with no scores, but if you don't pay a $300 car note on time, then no loan for you. Also keep in mind, folks with scores under 600 default at a MUCH higher rate than others. We should not knowingly create foreclosures so we can earn a pay check today and feel good because we're social workers. There is no shame in renting.

JUSTFRANK101: (May 27, 2010 6:41am)

Appraisers UNITED has never been more important. Join the CaCAP today. California Coalition of Appraisal Professionals www.cacap.org 19528 Ventura Blvd,Suite 451 Tarzana, CA 91356 Phone: 8052417770 Fax: 8052417774

JUSTFRANK101: (May 27, 2010 6:38am)

"Appraisal Independence Requirements" language that helps us is still alive. National support is being coordinated. A response is being prepared. We are on schedule. BACKGROUND: If you were not aware, S.3217 was passed by the Senate but the Casey amendment, which put "Appraisal Independence Requirements" back in the bill, did not make it. This means there will be a conference; Congressmen and Senators appointed to meet and determine what the final bill will contain. STATUS: As you might expect yesterday, and again early this morning, David Bereznick, CCAP Government Affairs Chair, was on the phone with key Congressional offices determining the exact status. He reports that neither the House of Representatives or the Senate have appointed their conferees. This process should be complete in the next day or so. CCAP will continue to monitor the process so that we are ready, at the right time, with the right response. Getting the correct message to the right people at the right time is crucial. ACTION PLAN: Be ready. Also, all state Coalitions are involved. A letter, targeted directly to conferees, is in process. We will be attempting to involve all appraisers

DanSchweihs: (May 27, 2010 6:09am)

When you call FHA today, ask them about this: FHA’s average credit score has gone from 620 to over 700. FHA has stopped working toward its original mission of “Serving the Underserved” and has instead crowed out private mortgage insurance by becoming a Triple-A loan insurer. They have reduced the pool of available buyers. They have been a major contributor to the glut of unsold homes by eliminating large groups of “Underserved” potential buyers. No question that the cost of insuring a loan has increased due to the increased foreclosure rate along with other reasons. Back in the 1970s, the cost of gasoline increased, which increased the Post Office’s cost to deliver a letter. The Post Office did not stop delivering mail to people that were expensive to serve. They raised the price of stamps. FHA can raise the price of up-front mortgage insurance to 5% and get back to “Serving the Underserved” again. FHA has a monopoly. They can raise the price they charge.

DanSchweihs: (May 27, 2010 6:08am)

Under this scenario, the percent of new loans that go into foreclosure will increase along with the total number of foreclosures. But if one out of ten new loans ended up in foreclosure, nine in ten would stick. We need to start looking at the loans that stick. The glut of unsold homes would start to dry up due to the expanded pool of buyers. FHA was invented during the great depression to expand the pool of available buyers and eliminate the glut in the housing industry by “Serving the Underserved”. Nobody want to use the politically incorrect word but we have having a mild depression now. The previous solution might work again.

DanSchweihs: (May 27, 2010 6:08am)

Three government institutions guarantee mortgages, FHA, USDA, and VA. Two of the three government institutions allow 100% LTV mortgages. The third says it is impossible. FHA just needs to raise the price they charge for their services and get back to their stated purpose. America needs to expand the pool of available buyers. We will not have a recovery without housing. Is there a glut of homes or a shortage of buyers? The government has created the problem by eliminated the “Underserved” class of buyers. More ideas available at: http://www.hard-loans.com/Solution.htm

FLMTGBRKR: (May 27, 2010 5:33am)

About the first time home buyer tax credit....I have a USDA loan in a holding pattern because of the funds not being available. Once they are, I'm sure the USDA offices are going to be slammed!!! If they cannot close my loan in time...this young couple will not get the tax credit....Why should the first time home buyer suffer for what the government was offering but did not have funds available for??!!!!

REORealtor1: (May 27, 2010 5:16am)

You just have to look at where the money is. Re-think yourself! Create your own market! 5.77 Million sales, someone made a commission somewhere didn't they? As an REO listing agent I run into the same Realtors over and over who are doing most of the business; are they lucky? No, but they are the ones that return phone calls, work all hours, work weekends and are on top of their business. There is so much business out there, just re-think, re-group and figure it out!I'm not thrilled with 12-14 hour days seven days a week but it's where the money is right now and I know plenty of Realtors doing well with short sales and other doing great working only buyers. Ditto for mortgage brokers. The ones that are making money are the ones that pick up their phones, get a pre-qual out in hours not days, stay on top of their closings and keep in touch AFTER the sale.

imnosaj: (May 27, 2010 4:02am)

Where do you guys get this crap from ??? MR T ??? Thats just plain funny right there ! If you dont think thats funny theres something wrong w/ you.