My New Blog

November 13th, 2013 11:31 AM

Appraisers get ready for more changes starting 1/26/2014, to implement in the Uniform Appraiser Dataset compliance warning edits coming from Fannie Mae & Freddie Mac.  Per ANO (Appraiser News Online), this will be the 2nd phase of the updates which will include the following sections: Location rating, Quality of construction, View Rating and Condition Rating.

Noted in news release is that if the data is incomplete, the related edits will be send back as incomplete and corrections as in UAD tech specs.

Let us hope the changes can help clarify and eliminate concerns while reporting to our clients and not add any confusion.

Welcome any comments!


Posted in:General
Posted by Dean Bettencourt on November 13th, 2013 11:31 AMLeave a Comment

Subscribe to this blog
September 27th, 2008 1:25 PM


Rise of the mega lenders

JP Morgan joins BofA at top with WaMu play


JP Morgan Chase's acquisition of failed Washington Mutual Bank will create a leviathan in mortgage lending, second in originations only to the juggernaut created by Bank of America's acquisition of Countrywide Financial Corp.

JP Morgan said its acquisition of WaMu will allow it to grow in major markets like California, Florida and Washington state, and create a company with 5,400 branches in 23 states.

The combined bank will also be the largest U.S. depository institution, with $911 billion in deposits; the biggest provider of credit-card services, with $181 billion in outstanding debt on 170 million credit cards; and the second-largest retail bank, with 24.5 million checking accounts.

As was the case with Bank of America's Countrywide purchase, JP Morgan paid a relatively small price up front but also takes on billions of dollars worth of troubled mortgage loans.

JP Morgan paid $1.9 billion to the Federal Deposit Insurance Corp., which was named receiver after the Office of Thrift Supervision closed WaMu down Thursday evening in the biggest bank failure in U.S. history. The payment allowed the change in ownership to take place without any losses for WaMu depositors or the FDIC's $45.2 billion deposit insurance fund, the FDIC said.

OTS concluded that WaMu -- which employed more than 43,000 workers, operated 2,200 branch offices in 15 states, and had $188.3 billion in deposits at the end of June -- was "in an unsafe and unsound condition to transact business" after a $16.7 billion run on deposits that began Sept. 15.

Losers in the deal are holders of WaMu senior unsecured debt, subordinated debt and preferred stock, which were excluded from the acquisition.

JPMorgan said it would mark down the loan portfolio it's acquiring from WaMu by approximately $31 billion -- an estimate that could change if Congress approves the Treasury Department's plan to buy $700 billion or more of such assets or the economy worsens.

In a presentation to investors, JPMorgan said that as of the end of 2007 the estimated "life loss" for WaMu's home loan portfolio was $36.2 billion. That included $14.2 billion in projected losses from home equity and home-equity-line-of-credit loans, $11.8 billion from pay-option adjustable-rate mortgage (ARM) loans, and $7.5 billion in losses on subprime loans.

Those estimates assumed that the peak-to-trough decline in home prices would total 25 percent for the nation as a whole and 44 percent in California and Florida, with most of those declines having already occurred. Under a deeper recession in which peak-to-trough home prices fall 28 percent, life losses from the end of 2007 could hit $42 billion.

A worst-case scenario in which a severe recession produces peak-to-trough price declines of 37 percent might drive losses on WaMu's home-loan portfolio to $54 billion, JPMorgan disclosed, saying it planned to raise additional capital as part of its acquisition.

The acquisition, which also extends JPMorgan's retail branch network into Georgia, Idaho, Nevada and Oregon, could help the combined banks challenge Bank of America's soon-to-be status as the nation's largest mortgage lender after finalizing its purchase of Countrywide.

Although the combined $92.9 billion in residential mortgage originations Bank of America and Countrywide tallied in the second quarter far surpass $69.8 billion in originations by JP Morgan and WaMu during the same three-month period, WaMu's $8.4 billion in originations represented a 76 percent decline from the $36 billion in loans originated in the same quarter a year ago.

When the credit crunch hit in August 2007, WaMu was forced to transfer $17 billion in nonconforming real estate loans it had been planning to sell to investors to its own loan portfolio, and keep loans not eligible for securitization by Fannie Mae and Freddie Mac on its books. That, along with tighter underwriting standards and reduced demand for home loans, helped curtail WaMu's originations.

In the fourth quarter of 2007, WaMu discontinued all remaining subprime mortgage lending, wound down warehouse lending operations, and this year eliminated negatively amortizing products including option ARMs.

Some of the infrastructure WaMu employed to originate those loans is gone. In an attempt to cut costs, the company laid off thousands of workers and closed all 336 freestanding home loan centers it was operating at the end of last year.

But to the extent that WaMu's cutbacks in lending were forced by the company's inability to raise capital, the thrift's acquisition by JP Morgan could help it boost mortgage originations.

Increasing JP Morgan's regional banking presence not only strengthens the company's retail business but benefits other business lines, including the company's commercial banking, business banking, credit card, and asset management groups, said Jamie Dimon, company chairman and chief executive officer.




What's your opinion? Leave your comments below or send a letter to the editor.

Posted in:General
Posted by Dean Bettencourt on September 27th, 2008 1:25 PMLeave a Comment

Subscribe to this blog
September 27th, 2008 1:15 PM

HVCC Agreement on Appraisal Reform To Be Delayed Up To 3 Months According to James Lockhard, FHFA

Ai_storytime_2The Associated Press is reporting that James Lockhart, director of the Federal Housing Finance Agency, told the House Financial Service Committee that the agreement with New York Attorney General Andrew Cuomo is still being worked out.

"Lockhart said the agreement will be delayed by one to three months from it's original Jan. 1 start date. While the agreement should be finalized in the coming weeks, "it's taken us longer than we expected to do it," he said."

Click here Download 92508FHFAHouseHearingStatement.pdf for his prepared statement.

Posted in:General
Posted by Dean Bettencourt on September 27th, 2008 1:15 PMLeave a Comment

Subscribe to this blog
August 28th, 2008 1:08 PM

Trend of Home Price Declines Continued Through the First Half of 2008

Posted By Paige On August 27, 2008 @ 3:39 pm In Real Estate | Comments Disabled

RISMEDIA, August 28, 2008-Data through June 2008, released this week by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, a measure of U.S. home prices, shows continued broad based declines in the prices of existing single family homes across the United States, a trend that prevailed throughout 2007 and has continued through the first half of 2008.

The decline in the S&P/Case-Shiller U.S. National Home Price Index-which covers all nine U.S. census divisions-remained in double digits, recording a record 15.4% decline in the second quarter of 2008 versus the second quarter of 2007. This is larger than the decline of 14.2% reported in the first quarter of the year. The 10-City and 20-City Composites also set new records, with annual declines of 17.0% and 15.9%, respectively. However, it should be noted that the acceleration in decline was only moderate in June. The May numbers reported annual declines of 16.9% and 15.8%, respectively.

“While there is no national turnaround in residential real estate prices, it is possible that we are seeing some regions struggling to come back, which has resulted in some moderation in price declines at the national level,” says David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “Depending on where you focus on the details of the report, you can see some different stories on where home prices are headed.

Record year-over-year declines were reported in both the 10-City and 20-City Composites in June; however, they are very close to the values reported for May. The rate of home price decline may be slowing. For the month, the 10-City Composite was down 0.6% and the 20-City Composite was down 0.5%. While still falling, these are far less than the 2-2.5% monthly drops seen earlier in 2008. In June, nine of the 20 cities were up month-to-month compared with seven in May. Nevertheless, not one market is showing a positive return over the past 12 months and seven of the metro areas are reporting declines in excess of 20.0%.”

At the national level, the housing market peaked around June/July of 2006. As of June 2008, two years later, the 10-City Composite has fallen by 20.3% and the 20-City Composite is down 18.8%. Las Vegas remains the weakest market, reporting an annual decline of 28.6%, followed by Miami and Phoenix at -28.3% and -27.9%, respectively. Phoenix was the worst performer for the June to May period, returning -2.6%. The markets that were the high-flyers during the recent real estate boom continue to be the ones that are leading the current decline. On the plus side, Denver and Boston were the best performing markets for the month, returning +1.5% and +1.2%, respectively. Both these markets have had three consecutive months of positive returns. They are outdone by Charlotte and Dallas, however, which have recorded four consecutive months of positive returns. Although there are some improving regional numbers, the picture of the overall residential real estate market remains weak.

For more information, visit [1]

RISMedia welcomes your questions and comments. Send your e-mail to: [2]

Posted in:General
Posted by Dean Bettencourt on August 28th, 2008 1:08 PMLeave a Comment

Subscribe to this blog
August 23rd, 2008 1:41 PM

Jack is pretty accurate. Falling prices will make the investors come back out again. If a property gets low enough, investors will buy it and rent it out. So don't look for prices to fall too far.

If interest rates rise, the prices will also be forced to come down, but the "monthly strokes" which the average Joe needs to pay to qualify won't change much, so that leaves even more opportunities for investors with cash and credit lines to swoop in a snatch the deals.

The fact is if you can't afford to buy a home in San Diego today, you probably are not going to be able to afford one next year or in three years... unless you inherit a big chunk of money for a larger down or your income goes up 30% or more.

That's why it amazes me tha so many people move here to live thinking htey are going ot buy a home. If you didn't sell a home where you came from, buying one here is just a pipedream.

Prices may go down another 20% but when that happens investors with cash will cherry pick first. The smartest investors saw the bubble coming and got out and are now waiting for the prices to get attractive. This a the dirty little secret of San Diego and why 70% of people living here are renters.

Posted in:General
Posted by Dean Bettencourt on August 23rd, 2008 1:41 PMLeave a Comment

Subscribe to this blog
August 22nd, 2008 2:18 PM

Is our region out of the housing cellar? Some experts are saying this may be temporary. After reading a recent article in the San Diego Union-Tribune that stated we are the 20th least affordable metro area now vs about 4 years ago when the National Builders Association ranked San Diego as the nation's least affordable metro area, I also find myself wondering, is this reality or is it what local experts are saying in that it may be only temporary due to the foreclosure and short sale activity we are experiencing. That being said, here we are now about 20th in the nation and based on the article's affordability stats, now roughly 31% of homes sold in San Diego are affordable to the households earning median income. This is in comparison to only 4% back in the latter part of 2005. So now what, do we buy now, is this where we are leveling off to, is there more room for decline? What does your crystal ball say?


Posted in:General
Posted by Dean Bettencourt on August 22nd, 2008 2:18 PMLeave a Comment

Subscribe to this blog