Happy New Year!!

Consumer Confidence Rises

As reported by Mortgage News Daily, consumer confidence for the month of December is 9.3 points higher than November as depicted in a report by the Conference Board. The increased confidence has started to show in stock market gains and will hopefully follow suit in the housing market.

According to the report, consumers were 8.4 points more content with their current situation than the previous report with stats at 46.7 and 38.3, respectively. This statistic is the highest it has been since September of 2008. In addition, consumer expectations rose from 66.4 to 76.4 since this last November.
The outlook on jobs also slightly increased which shows an upturn in consumer's feelings of stability in the economy. The report indicated that the overall figures are at the highest they have been since April of this year.

Plan to Rent Foreclosed Fannie & Freddie Homes Moves Forward

Bloomberg Businessweek has reported that Deutsche Bank and Fortress Investment Group have joined the ranks of 493 firm proposals that have responded to the plan of renting out Fannie Mae and Freddie Mac foreclosed properties.

The full details of the plan are still under wraps by the FHFA but it has been claimed that this plan is on the top of the list and transactions are looking to take place in the beginning of this next year. Renting out the currently vacant properties will provide living space to those who may not qualify for a mortgage and will help increase the value of the surrounding neighborhoods and properties. According to a Securities and Exchange Commission filing, as of September 30, Fannie Mae held 122,616 foreclosed properties and Freddie Mac held 59,616 properties.

Funds are also being raised by firms to purchase foreclosed properties in bulk, sell to investors who will repair and maintain the homes and then hire managers to oversee the rentals or sell the homes and split the proceeds with the government.

FBI Agent Gets Prison Sentence for Mortgage Fraud

Reported from the Los Angeles Times- Darin McAllister joined the L.A. Police Department in 1991 to later become part of the FBI in 1996 doing undercover work. His career had skyrocketed so he took part in real estate investment market by purchasing a few duplexes and renting them out. All went well until the market crashed and McAllister found himself unable to keep tenants and produce payments. Soon his properties were put into foreclosure and he was notified that he was under investigation due to his inflation of income on mortgage documentation. In May of 2010, he received the charges of 19 counts of wire fraud, false declarations and a few other felonies. The defense stated that McAllister was over his head and did not understand the documentation properly enough to know his wrong doing. McAllister himself claimed he felt he was tricked by inside mortgage professionals, such as loan officers and appraisers, and felt it was a bit out of his control. The final conviction came out at 15 counts of wire fraud and three counts of bankruptcy fraud with four years in prison and a $675,000 fine.

The reason for this posting is to show the severity of mortgage fraud and how important it is to make sure all parties of mortgage transactions understand the documentation. Since the market crash, laws regarding mortgage fraud and misrepresentation have become stronger than ever and for the safety of not only the borrower, but the mortgage professionals as well, it is very important to understand all the fine print.

Foreclosures Still Running the Market

As reported by CNN Money, November home sales were stacked full of short sales and REOs. Information collected showed that 46 percent of homes sold in November were foreclosed properties. The average sales price for short sales was $209,000 and REOs was $190,000, both much less than the average price for regular sales at $259,000.

There does not seem to be a end in sight as LPS Applied Analytics collected data stating that 2 million delinquent borrowers are currently in the foreclosure process. What is also complicated about the vast amount of foreclosed properties for sale is that many of them are in poor shape due to the lack of funds available by the previous owner. It then becomes more difficult for borrowers, particularly those with low funds themselves, to get financing on properties that need a large amount of money and work put into them.

To learn more about financing for foreclosed properties and some programs available to borrowers such as Fannie Mae Home Path and Fannie Mae Home Path Renovation, contact Aapex Financial Solutions at info@aapexfinancial.net or visit our website at http://www.aapexfinancial.net/

Top 10 Least Expensive Housing Markets in the US

To conclude our posting from yesterday, we now present the top 10 least expensive housing markets in the US as reported by U.S. News and World Report:

1. Niagara Falls, NY - $60,820
2. Riverdale, GA - $61,618
3. Coolidge, AZ - $69,083
4. College Park, GA - $72,477
5. Detroit, MI - $73,363
6. Hastings, FL - $74,910
7. Cleveland, OH - $76,042
8. Lithonia, GA - $77,385
9. Trotwood, OH - $77,445
10. Sioux City, IA - $80,152

It appears that inexpensive real estate is spread across the US, with the state of Georgia barely coming in first. This is a drastic difference from the expensive housing market being highly concentrated in the state of California.

Top 10 Most Expensive Real Estate Markets in the US

As reported by U.S. News and World Report, a study from September, 2010 to March of 2011 shows the top real estate markets in the US regarding average home sales price. See the list below:

1. Newport Beach, CA - $2.53 million
2. Pacific Palisades, CA - $1.6 million
3. Stone Harbor, NJ - $1.34 million
4. Ranchos Palos Verdes, CA - $1.31 million
5. Saratoga, CA - $1.28 million
6. Los Gatos, CA - $1.26 million
7. Weston, MA - $1.23 million
8. Greenwich, CT - $1.15 million
9. Mercer Island, WA - $1.14 million
10. Cupertino, CA - $1.14 million

This list comes to conclude that California, despite all the housing market trouble, still holds most of the top selling points for homes.

Top Gaining Real Estate Markets of 2011

Most of the news regarding home values has been pessimistic as US values have fallen 24 percent since the peak in 2007. However, there are some markets that have continued to flourish and have seen a home value increase from October of 2010 to October of 2012. The top 5 markets for home value increase in 2011 are:

1. Tulsa, OK - 6.2% increase
2. Oklahoma City, OK - 3.1% increase
3. Lincoln, NE - 2.7% increase
4. Madison, WI - 1/3% increase
5. Honolulu, HI - 1.3% increase

Oklahoma seems to round off the top of the list of home value increases of 2011. Some other states that made increases not included in the top five are Colorado and Florida, a state that has been hit hard by the housing industry downfall.

S.E.C. Versus Fannie and Freddie

According to the New York Times, civil actions have been brought upon former Fannie Mae and Freddie Mac executives for not properly disclosing the risky mortgages they had business with prior to the mortgage meltdown. Due to Fannie and Freddie's increasing reputation of risky business practices, these claims do not help the mortgage heavyweights. Two separate complaints have been recently filed against the following previous Fannie Mae and Freddie Mac executives:

• Fannie Mae
• Chief Executive, Daniel H. Mudd
• Chief Risk Officer, Enrico Dallavecchia
• Executive Vice President, Thomas A. Lund
• Freddie Mac
• Chief Executive, Richard F. Syron
• Chief Business Officer, Patricia Cook
• Executive Vice President, Donald J. Bisenius

The S.E.C. is taking this case very serious by indicating that all people involved in the misrepresentation of risky mortgages, regardless of their position, will be held accountable. Fannie Mae is fighting back by saying that the government had approved all of their files and that these claims are inaccurate. View the public Civil Action S.E.C. versus Mudd, Dallvecchia and Lund HERE

Fannie Mae's Third Quarter STAR Ratings

Fannie Mae's third quarter STAR, Servicer Total Achievement and Rewards Program, ratings have been reviewed for 2011. A good number, 48 percent, of Fannie Mae servicers have an outlook of gaining at least a three STAR rating, out of five, for 2011.

The STAR program was started in February of this year to increase the performance expectation out of Fannie Mae servicers in regards to decreasing foreclosures and helping current neighborhoods stay intact. Fannie Mae keeps track of each servicer's impact through trend spotting and monthly reviews.

The final overall ratings will be a combination of the outcomes of each servicer's operations over the year as well as their scorecard reviews.The final 2011 STAR results will be published in the beginning of 2012.

More information about Fannie Mae's STAR program can be found HERE.

Choose the Right Neighborhood

Many things are factored in when searching for a new home. One of the most important things people look for is the neighborhood quality in which their prospect property sits. Here are a few things to think about when choosing the right area to purchase:

• Is the neighborhood safe? Understanding the quality of life within your potential residential area is important, especially when children are involved. A great resource to learn about neighborhood crime levels is http://www.neighborhoodscout.com/. Another good idea is to call the local police department and inquire about the crime rate in that area. Be sure to drive through the neighborhood at night to also get a feel for its safety at all times.
• How are the schools? If you have children or are planning to have children, this is a very important question. If you go to http://www.greatschools.org/ and plug in the neighborhood zip code, a variety of different schools will come up with community ratings. There is also an option on this site to look at properties for sale in each school district.
• Do the current neighborhood occupants care? Not only is the neighborhood important but so are the people who reside in it. Take a look at your possible new neighbor's properties. Are their lawns well maintained? Are their homes up kept? Are there signs of other children in the neighborhood?
• Does your desired property fall within the guidelines of your financing? Certain loan programs require that the property be within a designated area. The USDA 100 percent financing loan program requires that the property is considered in a "rural" area. Even so, a person could be surprised what is actually considered to be "rural" in some instances.

To learn more about these topics as well as the 100 percent USDA financing, call Aapex at 704-892-5211.

Should You Wait to Buy?

We are in the business of financing loans but more importantly, we are in the business of steering borrowers in the right financial direction. Sometimes it is not the best time for a person to make a large home purchase and we think it is unethical to push them in the wrong direction. Here are a few questions to ask yourself before purchasing a home:

• Is your income steady? Have you been on your current job for at least two years? If not, were you previously in a job in the small field? Have you had major gaps in your employment or think you may have upcoming gaps? Major employment gaps that cannot be explained may hinder you in financing.
• Are you sure you will be staying in your current area for a while? This is something to think about to consider if you will need to sell your home in the near future.
• Do you have a stable savings account? Has your money been in your savings account for a while at a steady rate? Will you need to borrow money for a down payment? If so, you must remember that any gift will need to season in your account for at least 6 months.
• Is your credit good? When was the last time you checked your credit? For most loan programs, the lowest you can go is around 640 and even this low of a score comes with other stipulations.
• Did you just finance other major purchases such as automobiles or appliances? These purchases will raise your debt to income ratio, a very important ratio used in calculating your financing.

It is important that borrowers are educated and fully understand the loan process and what each factor means to them in order for them to make the correct decisions. Share this if you agree. Have more questions? Contact us at 704.892.5211

What's Your Score?

A person's credit report holds a wealth of information that can make or break a person's chances in all different realms of their lives. The credit report can hold the key to if they can obtain a certain job, gain licensing in different fields, and receive financing for such things as homes and automobiles. Credit reports contain important information on past and current debt and liabilities, inquiries of current credit pulling, and potential identity theft. Since credit reports are so valuable, it is shocking to know that most Americans do not know their credit score! A nationwide phone survey of 1,000 adults conducted from September 9-11, 2011 by Visa showed that 42 percent of people surveyed do not check their credit score regularly. Some other interesting data that was derived from this report includes:

• 64 percent thought income was a factor
• 50.9 percent believed employment history was a factor of their score
• 53.1 percent thought assets and savings were part of their score
• 39.6 percent believed age was included in their score
• 21.6 percent thought the ability to speak English had a positive effect on their score
• 17.2 percent said gender had an impact on their score
• 15.7 percent thought race was considered when establishing a credit score

There seems to be a need to educate the American population on what their credit report includes and how it affects them. Free reports can be obtained annually from www.annualcreditreport.com and Aapex Financial Solutions is always willing to help with any credit report questions you may have. Visit us at http://www.aapexfinancial.net/.

Top 5 Best and Worst Home Value Areas in US

According to the National Associations of Realtor's 2011 Q3 index, the following areas earned the best increase in home value and the worst decrease in home value from 2010 Q3:

Best

• Grand Rapids, MI
• $11,200 median home price
• 23.7 percent increase
• South Bend, IN
• $94,800 median home price
• 19.8 percent increase
• Palm Bay, FL
• $109,600 median home price
• 17.7 percent increase
• Youngstown, OH
• $68,300 median home price
• 13.1 percent increase
• Green Bay, WI
• $135,700 median home price
• 12.6 percent increase

Worst

• Mobile, AL
• $98,800 median home price
• 17.7 percent decrease
• Phoenix, AZ
• $113,700 median home price
• 17.6 percent decrease
• Allentown, NJ
• $183,800 median home price
• 17.5 percent decrease
• Salt Lake City, UT
• $182,600 median home price
• 15.3 percent decrease
• Gulfport, MS
• $103,100 median home price
• 12.7 percent decrease

Mortgage Applications Spike!

The MBA, Mortgage Banker Association, has reported that both refinances and home purchases have jumped by 12.8 percent for the week of December 2, according to their seasonally adjusted index of mortgage activity.

Refinances lead over purchases with a rise in 15.3 percent and 8.3 percent, respectively. The share of refinances within all mortgage activities has gone up to 76 percent versus 73.9 percent from the week prior. These statistics come from the MBA survey of over 75 percent of U.S. retail residential mortgage applications.

More Lawsuit News in the Secondary Market

According to Bloomberg Businessweek, another lawsuit has reached its settlement regarding misleading mortgage-backed securities sold to investors in the secondary market. This time, Bank of America's Merrill Lynch unit is the culprit.

This lawsuit has been in the works since December of 2008 and just reached a settlement at $315 million for  inaccurate statements to investors regarding appraisals, debt-to-income ratios and other qualifying factors. This settlement did not come easily with the litigation including a review of over 20 million pages of documents.

Merrill Lynch's explanation for the investor losses are said to be a result of "the overall economic downturn, housing-price declines and reduced liquidity."

Bank of America, based in Charlotte, North Carolina, fell 4 cents to $5.75 at 1:41 p.m. in New York Stock Exchange composite trading.

The lead case is Public Employees' Retirement System of Mississippi v. Merrill Lynch & Co., 08-CV-10841, U.S. District Court, Southern District of New York (Manhattan).

Active Duty Foreclosures

The House Veteran Affairs Committee has held a hearing on some of the nation's largest banks violating the Service members Civil Relief Act. The laws in order under this act have been in place since WWI and forbid legal procedures, such as foreclosures, being implemented while members are still in active duty. Unfortunately, this is exactly what has happened to a number of active duty military members. Some banks have also violated another law which caps interest rates at 6 percent for military currently in active duty.

North Carolina's very own Representative, Brad Miller, is taking a strong stand against the injustice against the service members having said,“The thinking behind the law is that if you’re deployed, if you’re in harm’s way, you should be able to give that your entire attention. It’s hard to imagine that the banks did not know that was the law.”

One bank that acknowledged wrong doing was JPMorgan Chase with foreclosures on 18 service members and overcharging interest rates to 4,500 members. Chase has since refunded this money to the active duty members. Even so, the Veteran's committee is not completely satisfied with the money being refunded and wants this to be a wake-up call to the entire industry and not happen in the future.

Jump Start your Open House with Social Media

If you're having an open house or any kind of event coming up and want an easy and affordable way to get some buzz going, look no further than social media. Fliers, postcards, banners and email invites work but now are the days of instant communication and keeping up will only put you ahead of your competitors. Here are a few tips on how to include social media into your upcoming events:

• Share it: Use Internet invitation programs such as Eventbrite so that not only your invitee receives it but they can also share it with others.
• Tweet it: Tell the world about the event in 140 characters or less. Hype it up with key words to entice the readers to come. Make sure to get the Twitter html code to link the hype on your website, blog and other social media venues.
• Display It: Use websites like Flickr to upload your pictures of the event and/or homes. You can also encourage your attendees to upload their own pictures of the event to indirectly promote your company.
• Stream It: What if some attendees cannot make it? They can watch it live via video streaming using such websites as Youtube, Vimeo or even Facebook.
• Reward It: Let your attendees have a chance to be rewarded before they even attend the event. Sites such as Meteor Solutions allow the event preparer to add incentives for attendees to spread the word of the event.
• Track It: Want to know if your event was a success according to your attendees? Use a poll or small questionnaire from sites such as Survey Monkey and PollCode.

No Foreclosures for the Holidays

Both giant sibling mortgage companies, Fannie Mae and Freddie Mac, have just announced that they will be suspending evictions induced by foreclosures for all single family and 2-4 unit resident properties from December 19, 2011 to January 2, 2012. According to a Freddie Mac, these suspensions only apply to repossessed properties and will not be affecting properties in the pre- or post-foreclosure process. The suspension is said to give families a strong level of certainty and show both Fannie and Freddie's dedication to encouraging borrowers to seek help during times of financial struggle that may lead to foreclosure.

The Bailout Secrets of the Federal Reserve

You may have heard the information going around recently about the secret federal reserve bailout loans to large banks. Worldwide, a total of around 190 banks gained bailout money from the Fed and combined lost about $21.6 billion. In addition to the trillions of dollars given to banks by the Fed, the banks were also able to make nearly $13 billion in income from the Fed's below market rates. The secret of bank bailouts by the Fed from 2007 to 2010 has been kept from congress, firms and the public until now. Click HERE to learn more about the bailout and view an interactive chart that shows which banks made earnings from the bailout and compare their net income from losses.