Mike’s Real Estate Show

Press Releases
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Joint Release Office of the Comptroller of the Currency
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of Thrift Supervision
National Credit Union Administration 

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For Immediate Release June 29, 2007

Federal Financial Regulatory Agencies Issue Final Statement on Subprime Mortgage Lending
The federal financial regulatory agencies today issued a final Statement on Subprime Mortgage Lending to address issues relating to certain adjustable-rate mortgage (ARM) products that can cause payment shock.

The statement describes the prudent safety and soundness and consumer protection standards that institutions should follow to ensure borrowers obtain loans they can afford to repay. These standards include a fully indexed, fully amortized qualification for borrowers and cautions on risk-layering features, including an expectation that stated income and reduced documentation should be accepted only if there are documented mitigating factors that clearly minimize the need for verification of a borrower’s repayment capacity. Consumer protection standards include clear and balanced product disclosures to customers and limits on prepayment penalties that allow for a reasonable period of time, typically at least 60 days, for customers to refinance prior to the expiration of the initial fixed interest rate period without penalty.

The statement reinforces the April 17, 2007 interagency Statement on Working with Borrowers, in which the agencies encouraged institutions to work constructively with residential borrowers who are financially unable or reasonably expected to be unable to meet their contractual payment obligations on their home loans. Workout arrangements that are consistent with safe and sound lending practices are generally in the long-term best interest of both the financial institution and the borrower.

The agencies published the proposed Statement on Subprime Mortgage Lending for comment on March 8, 2007. Comments were received from financial institutions, trade associations, consumer and community organizations, members of Congress, state and local officials, and members of the public. The agencies made a number of changes to the proposal to respond to commenters’ concerns and to provide additional clarity.

The Statement on Subprime Mortgage Lending is attached.

Attachment: Statement on Subprime Mortgage Lending

FDIC-PR-55-2007

Media Contacts:

Federal Reserve Deborah Lagomarsino (202) 452-2955
FDIC David Barr (202) 898-6992
NCUA Cherie Umbel (703) 518-6337
OCC Kevin Mukri (202) 874-5770
OTS Kevin Petrasic (202) 906-6677
 

The $1,000,000 home report:  properties listed and sold for a $$$Million+ in price have extended  time on the market and supply increasing. Currently in Santa Rosa there are 138 Homes now on the market with only 14 in escrow. This is about a 10 month supply of homes. For the past six months we have a total of 65 Sales with a median price of $1,175,000. Five years ago for the same reporting period we only had 14 sales in the $1,000,000+ price point!! Yes, appreciation lifted ALL ships!

  Countywide it is a bit different. 406 “Active Listings” our now on the market with 72 in escrow or just under a six month supply of homes. In the past six months we have 184 “Sold” properties with a median for the county right around $1,275,000. Average time on the market is about the same at 129 days. The bulk of the activity happens from $1,000,000 to $2,000,000 with 154 sales in this price range.

  Those areas with the most $1,000,000 properties are the Eastside of Santa Rosa, Healdsburg/Cloverdale (wine country influence here!) and Sonoma. The coast also draws its fair share of $1,000,000+ properties as our very dramatic coast gives us some dramatic price points!!

FOR IMMEDIATE RELEASE
CONTACT: Michael J. Kelly, CRS,SRES 707-322-8503
Or 800-959-7244

MORE THAN A MILLION $5 MILLION-DOLLAR HOUSEHOLDS
Number of Ultra-Affluent households in the U.S. increased 23% in 2006
Increasing wealth drives luxury home market

Santa Rosa,Calfornia (July 4, 2007) – For the first time in history, there are more than a million households in the United States with a net worth of $5 million dollars or more (not including primary residences), according to an April report released by the Chicago-based Spectrum Group, “Affluent Market Insights 2007.”
  The number of Ultra High Net Worth individuals (those with a net worth of $5 million or more, excluding primary residences) grew 23% in 2006, representing the fastest growing sector of the luxury market.  These numbers echo trends seen elsewhere indicating that while the rich are getting richer, it’s the ultra-affluent who are experiencing the greatest increase in wealth.  According to the 2006 Forbes list of the Top 400 Richest Americans, each of the 400 individuals has a net worth of at least $1 billion dollars, a first since the company began compiling its list.

Read the rest of this entry »

Office of Federal Housing Enterprise Oversight
(OFHEO)
NEWS RELEASE
CONTACT: Corinne Russell (202) 414-6921
Stefanie Mullin (202) 414-6376
U.S. HOUSE PRICE APPRECIATION RATE REMAINS
SLOW, BUT POSITIVE
OFHEO House Price Index Shows Four-Quarter Declines in Two States

WASHINGTON, DC – The rate of home price appreciation in the U.S. remained slow but
positive in the first quarter of 2007. The OFHEO House Price Index (HPI), which is
based on data from sales and refinance transactions, was 0.5 percent higher in the firstquarter than in the fourth quarter of 2006. Read the rest of this entry »

The following is from a survey I participated which was conducted by Bank of American (BofA). The contact is stated below. The report is interesting in that we now have a game of brinkmanship between Sellers not wanting to drop their house prices and Buyers waiting for that event to happen! So everyone seems to be staring at each other waiting for the proverbial “Blink”!  

Daniel Oppenheim, CFA
212.847.5733
doppenheim@bofasecurities.com

BofA Monthly Real Estate Agent Survey
Traffic Sharply Below Expectations in May; Increased Pricing Pressure Likely
Agents Read the rest of this entry »