TPC Logo Website.png

Cheap Oakley Sunglasses NHL Jerseys Premier Vs Authentic Jerseys Wholesale Coach Factory Outlet Locations Devin Hester Elite Jersey Wholesale Jerseys China Michael Kors Outlet Store Riverhead Cheap UGGs Gucci Handbags On Sale Jerseys Cheap Michael Kors Outlet Stores Cheap UGGs Nike NFL Jerseys From China Cheap NFL Jerseys American Express Oakley Sunglasses Gucci Outlet Online Cheap Jerseys Elite Chanel Outlet Chanel Handbags Red Bottom Shoes Upcoming NBA Jerseys Louis Vuitton Outlet Online Kate Spade Wallet Gucci Neonato Scarpe Cheap Jerseys.Com China Online Coach Outlet Store Cheap Jerseys Cheap NFL Jerseys China

Real Estate

Good News For The Housing Market

Existing-home sales have soared nearly 8 percent from a year ago, the National Association of REALTORS® reported this week. Meanwhile, the new-home market also is showing signs of recovery, with starts rising 29.1 percent over year-ago levels, according to the Census Bureau.

What’s more, home builders are getting more confident about the market with recent sales, future sales, and buyer traffic. Homebuilder confidence reached its highest level since the housing-boom time of June 2006, according to this month’s index of homebuilder sentiment.

Also this week, fixed-rate mortgages this week were at all-time record lows or near it, helping to keep home buyer affordability high, Freddie Mac reported in its weekly mortgage market survey.

With a drop in inventory of for-sale homes nationwide, many markets are also seeing an increase in home prices. The median home price is $187,400, a 9.5 percent increase over year-ago levels. Also, “that marked the sixth consecutive month of price increases, the first time that has happened since May 2006, near the very peak of the housing price boom,” CNNMoney reports.

“We have a real housing recovery taking root, and that has positive implications for the broader economy,” Sal Guatieri, senior economist at BMO Capital Markets, told the Associated Press. “If home prices continue to rise, so, too, will household wealth and consumer confidence.”

Source: “Housing Recovery Blossoms,” CNNMoney (Sept. 19, 2012) and “Housing Recovery Stirs in August,” Associated Press (Sept. 19, 20

Wells Fargo Departure From Wholesale Lending

July 12 (Bloomberg) — Wells Fargo & Co., the largest U.S. mortgage lender, has stopped funding loans originated and sold by independent mortgage brokers [such as The Precision Companies] after settling a federal fair-lending investigation.

After Friday, July 13th Wells stopped accepting new applications for loans originated by independent mortgage brokers through its wholesale channel. The lender did, however, say it will still process and close existing applications.

Wells Fargo agreed to pay $125 million to settle U.S. claims that it discriminated against minority borrowers in making residential loans. The decision to exit wholesale was made by Wells Fargo “on its own volition,” the bank said in a statement about that accord.

The company made $7.4 billion of mortgages through brokers in the first quarter, the most of any lender and 21 percent of the industry-wide total, according to Inside Mortgage Finance, a trade publication. The loans made up about 5 percent of the company’s total, according to the statement.

Of note here is that safeguards have already been put in place at the regulatory levels to prevent the sort of extortion that is complained of. Further, all underwriting decisions for the wholesale channel were/are made by internal staff at Wells Fargo. An argument, could be made then, that Wells has decided to stop its Wholesale line of business with the hopes of directing a large portion of the $7.4 billion mortgages generated quarterly to its more profitable retail arm.

Indeed, with the loss of the last major Institutional funding source in the wholesale world, Wells Fargo has less of a reason to remain competitive, as it has effectively removed its biggest competitor: itself.

To the individual broker, however, it is not the end of the world. Since 2010, the emergence of small lenders has created a competitive marketplace; and with the volatility in the securities market, it is likely the sources for funding purchase money and mortgage refinance loans will continue to grow for the foreseeable future.

            -Justin Betance

The Precision Companies