Real Estate News Headlines: Fourth Quarter of 2010

The following headlines and news items were compiled from a number of authoritative sources and industry experts including Fannie Mae, Freddie Mac, the National Association of Realtors, Realty Track and the Wall Street Journal. The next news update is scheduled to be released in the first quarter of 2011.

New Buyer Incentives on HomePath® Homes - www.homepath.com

Fannie Mae is offering buyers up to 3.5% in closing cost assistance and a $1,500 bonus for selling agents on HomePath properties through December 31, 2010.

Buyers and selling agents must meet the following qualifications to be eligible for the incentive:

A HomePath home sale must close on or before December 31, 2010 and within 60 days of offer acceptance. Only owner occupants purchasing a HomePath property will receive up to 3.5% in closing cost assistance. Only selling agents representing owner occupants purchasing a HomePath property will receive a $1,500 bonus. To be eligible for the agent’s bonus, the initial offer must be submitted on or after September 23, close within 60 days of offer acceptance and close on or before December 31, 2010. No bonus will be given for investor purchases. Buyers and selling agents must request incentive upon submission of initial offer in order to be eligible.

Source: NAR Weekly Newsletter, Posted: 09/29/10 || NAR's The Washington Report, Dated 9/27/10

Fannie Mae First Look Program

Fannie Mae's innovative First Look period contributes to neighborhood stabilization by encouraging home ownership. During this period, owner occupants, public entities, and their partners can submit offers and purchase properties without competition from investor offers.

The First Look period is typically the first 15 days a property is listed on HomePath.com. Properties within the First Look period now include a countdown clock on the property details page, which displays the number of days remaining for owner occupants and public entities to submit offers.

If the property remains available for sale after the expiration of the First Look period, investor offers may be submitted and will be considered along with all other offers.

The Fannie Mae Resource Center may be contacted for more information at 1-800-732-6643.

Source: NAR Weekly Newsletter, Posted: 09/29/10 || NAR's The Washington Report, Dated 9/27/10

National Flood Insurance Extended through 2011; Senate Banking Committee Holds Reform Hearing

Congress unanimously approved a one-year extension of National Flood Insurance Program authority to September 30, 2011. S. 3814 was first approved on September 21, 2010, by the unanimous consent of the Senate and two days later, by the voice vote of the House of Representatives. The bill now heads to the President for his signature as soon as the week of September 27, 2010. With program authority now extended for a year, it is expected that attention will now turn to proposals to reform and ensure the financial soundness of the NFIP. While the House passed its reform bill (H.R. 5114) earlier this year, it is unlikely that a reform bill will move until next year.

Source: NAR Weekly Newsletter, Posted: 09/29/10 || NAR's The Washington Report, Dated 9/27/10

Fannie Mae Introduces Second Lien Modification Program

Read our summary of this program on Page 2 of Realty News > > >

Freddie Mac's Weekly Mortgage Market Survey (PMMS®)

Freddie Mac's Weekly Primary Mortgage Market Survey® (PMMS®) is conducted on Mondays through Wednesdays with results reported on Thursdays. The survey is based on responses from 125 lenders to determine the average rates and points charged by each lender for their 30 and 15-year fixed-rate mortgages, 5/1 hybrid amortizing adjustable-rate and 1-year amortizing adjustable rate mortgage products. The mix of lender types used for the survey is approximately proportional to the level of mortgage business that each type of lender commands in the marketplace nationwide. This include thrifts, commercial banks and mortgage lending companies.

The survey is based on conventional conforming mortgages with a loan-to-value ratio of 80 percent for first-lien prime mortgage notes. The adjustable-rate mortgage (ARM) products are indexed to constant-maturity U.S. Treasury rates. Lenders are asked to provide initial coupon rate, points and the margin on ARM products.

Freddie Mac's Primary Mortgage Market Survey is relied upon heavily by the public and mortgage industry in gauging market conditions and has evolved into the most representative and reliable source of regional and national mortgage rate trends.

For a breakdown of U.S. Regional Mortgage Rates, you may wish to visit the Official Freddie Mac website.