Fannie Mae and Freddie Mac Help More than 2.3 Million Homeowners Keep their Homes

Fannie Mae and Freddie Mac completed more than 130,000 foreclosure prevention actions during the first quarter of 2013, bringing the total foreclosure prevention actions to nearly 2.8 million since the start of conservatorship in 2008. These actions have helped more than 2.3 million borrowers stay in their homes, including nearly 1.4 million who received permanent loan modifications. The results are detailed in the Federal Housing Finance Agency’s first quarter 2013 Foreclosure Prevention Report, also known as the Federal Property Manager’s Report.

The quarterly report has information on state delinquencies and an updated, interactive Borrower Assistance Map for Fannie Mae and Freddie Mac mortgages, with information on delinquencies, foreclosure prevention activities and Real Estate Owned (REO) properties.

Also noted in the report:

• Serious delinquency rates dropped from 3.3 to 3.0 percent at the end of the quarter.
• The number of Fannie Mae and Freddie Mac borrowers who are more than 60 days delinquent declined 11 percent in the first quarter to the lowest level since the first quarter of 2009.
• Half of troubled borrowers who received permanent loan modifications in the first quarter had their monthly payments reduced by more than 30 percent.
• More than one-third of loan modifications completed in the first quarter included principal forbearance.
• Over 30,000 short sales and deeds-in-lieu were completed in the first quarter, bringing the total to more than 476,000 since the start of conservatorship.
• Third-party sales and foreclosure sales continued a downward trend in the first quarter while foreclosure starts increased.
• A new streamlined modification initiative, announced during the first quarter, will take effect on July 1. Although numbers are not available yet, the program is expected to help eligible homeowners who have missed at least three monthly payments modify their mortgage by eliminating administrative barriers associated with document collection and evaluation.

Click here to read the full report at FHFA.gov.

Foreclosures continue to decline

Foreclosures continued to decline in September according to RealtyTrac's foreclosure report.  In South Carolina, one in 820 homes were in foreclosure proceedings, down 27 percent from last year.  None-the-less, South Carolina ranked 10 in the national in foreclosures.

• Greenville: one in 603 homes were in foreclosure, down 17 percent
• Spartanburg: one in 581 homes were in foreclosure, up 5 percent
• Anderson: one in 1,042 homes were in foreclosure, down 49 percent

Read more at  RealtyTrac.com by clicking here.

South Carolina ranked 37 among states for business tax climate

According to the State Business Tax Climate Index, published by the Tax Foundation, South Carolina is 37 in the nation in Business Tax Climate.  Factors include corporate tax (No. 10), individual income tax (No. 40), sales tax (No. 22), unemployment tax (No. 30), and property tax (No. 21).

The top five states are, from one to five, Wyoming, South Dakota, Nevada, Alaska, and Florida.  The bottom five states are, from 46 to 50, Rhode Island, Minnesota, California, New Jersey, and New York.

Read the rest of the report at GSA Business by clicking here.

NAHB: Shortage of Lots Slows Housing Recovery

A shortage of buildable lots, especially in the most desirable locations, has emerged as one of the key factors holding back a more robust housing recovery, according to the latest survey on the topic conducted by the National Association of Home Builders (NAHB).

“In our August 2013 survey, 59 percent of builders reported that the supply of lots in their markets was low or very low—up from 43 percent September of last year, and the largest low supply percentage we’ve seen since we began conducting these surveys in 1997,” said NAHB Chief Economist David Crowe. “One reason is that many residential developers left the industry, abandoned certain markets or simply stopped buying land and developing lots during the downturn.”

The 59 percent includes 39 percent who characterized the supply of lots simply as “low” and 20 percent who said the supply of lots was “very low.” Another 22 percent said the supply of lots was “normal,” 10 percent said it was “high” and four percent said “very high.” Six percent said they didn’t know or weren’t sure.

The survey found that lot shortages tended to be especially acute in the most desirable, or “A,” locations. Thirty-four percent of builders said that the supply of A lots was very low, compared to 18 percent for lots in B and 12 percent for lots in C locations.
The shortages have also translated into higher prices for builders who are able to obtain developed lots to build on. In the same survey, 34 percent of home builders said the price of developed A lots was somewhat higher than it was a year ago, and 26 percent said the price was substantially higher. In comparison, 15 percent of builders said the price of B lots was substantially higher than a year ago, and 11 percent said the price of C lots was substantially higher. Ultimately, higher lot prices are passed on to buyers in the form of higher house prices.

The shortage of buildable lots has emerged against the backdrop of a housing recovery that is still modest by historical standards. To this point, housing starts have recovered from a low of 550,000 in 2009 to an annual rate of just fewer than 900,000 in the Census Bureau’s latest release. Historically, starts averaged more than 1.5 million a year from 1960-2000, without ever plunging below 1 million until 2008.

“There is still a substantial pent-up demand for housing waiting to be unleashed as the overall economy and labor situation improves,” said Crowe. “Lot shortages are one of several barriers that have arisen, restraining builders from responding completely to increased demand. Other barriers include a shortage of labor in carpentry and other key building trades, limited availability of loans even for credit worthy home builders and home buyers; and, more recently, an uptick in interest rates.”

Member Advantage saves members $3.4 million in just 6 months

Did you know the Member Advantage program saved HBA members nationwide $3.4 million in the first half of this year alone? Member Advantage gives members an easy way to reduce expenses, maximize profits and increase efficiency. Through agreements with leading national companies, NAHB offers exclusive discounts on a variety of products and services that can benefit your business, employees and family. Read all about it right here, and get much more great information about the value of your NAHB membership in this handy resource.

Richard Sendler

Richard Sendler

Richard N. Sendler, 69, a Columbia Home Builder, died Thursday morning after a long battle with cancer. Born in Charlotte, NC he was a son of the late Moses Aaron and Mary Pegram Sendler.

Sendler was Past President of the Home Builders Association of Greater Columbia and an active member of the Home Builders Association of South Carolina. Sendler was a leader in advocating for reasonable building codes and served on the S.C. Building Codes Council.

The family will receive visitors Monday, October 7, 12:30 p.m., at Northeast Presbyterian Church, 601 Polo Road, Columbia, 29223. Services will begin at 1:30 p.m. The family will receive friends one hour prior to the service. Burial will be at Fort Jackson National Cemetery, 4170 Percival Road, Columbia, SC, 29229, at 3 p.m.

Memorials may be made to either the Charitable Foundation of The Home Builders Association of Greater Columbia, 625 Taylor Street, Columbia, SC, 29201, or The Aplastic Anemia and MDS International Foundation, 100 Park Avenue, Suite 108, Rockville, Maryland 20850. Please sign the online guestbook at www.dunbarfunerals.com.

Richard graduated from Wampee-Little River High School, and Georgia Tech University with a Master's Degree in Industrial Engineering. He proudly served his country in Vietnam as an officer in the US Army. He was owner of Sendler Construction Co., Inc., where he enjoyed a long career working with his family and those he considered family.

He is survived by his high school sweetheart and loving wife of 47 years, Carolyn Adams Sendler; sons; Richard N. Sendler, Jr. and Michael Scott Sendler and wife Lisa, all of Columbia; grandchildren, Christian Hope Sendler, Bailey Ann Sendler, Mya Neomi Illingworth, Ava Zoelle Sendler, and Jacob Cade Sendler; brothers, Edward P. Sendler and wife Jayne of Venice, FL, Charles C. Sendler and wife Lynn of North Myrtle Beach, SC; sisters Mary Ann Newell and husband Bill of Pittsboro, NC, Jean S. Ayers and husband Bill of LeGrange, GA, and a sister-in-law, Joyce Sendler of Atlantic Beach, FL; and many nieces and nephews.

In addition to his parents, Richard was predeceased by a brother, Alter W. Sendler.

How the Government Shutdown Could Affect Housing and Home Building

The ongoing shutdown of certain federal government functions will affect housing and home builders. In most cases, the short-run impacts will be minor. A long-run shutdown, lasting several weeks or a month or more, could have significant impacts on mortgage accessibility and reduce housing demand. And over the coming weeks, the shutdown could merge with the issue of raising the debt ceiling, which could have very significant impacts on interest rates, as well as monetary and fiscal policy.

Compiled by NAHB, the following is a list of government programs that could affect home builders and housing stakeholders under the current shutdown.

Department of Housing and Urban Development

• FHA-insured single-family loans will continue to be endorsed in the near term, although some delays in processing and closing should be expected.
• FHA multifamily insured projects with firm commitments and scheduled closings may go forward, although no new firm commitments will be issued.
• Section 8 Project Based Rental Assistance Contracts, rent supplement, Section 236, and PRACs with permanent or indefinite authority or multi-year funding will have payments made from budget authority available from prior appropriations or recaptures.
• No Real Estate Assessment Center (REAC) inspections.
• CDBG, HOME and other block grant funds will be dispersed in cases where failure to address issues result in a threat to safety of life and protection of property.
• Authorized drawdowns for approved CPD program activities (homeless assistance programs, CDBG, HOME, HOPWA) using pre-FY2014 program funds will continue uninterrupted unless it is necessary for a HUD employee to approve a voucher or lift a system edit prior to a draw down.

Department of Agriculture

• Most Rural Development programs will not continue without appropriation.
• The Section 521 Rental Assistance, Section 542 Rural Housing Vouchers, and Single Family Section 502 Guaranteed Loans will continue until funding is exhausted.
• A shutdown of more than two weeks is likely to have a significant impact on rural development programs.

Department of Homeland Security

• E-Verify, the Internet-based system that allows businesses to determine the eligibility of their employees to work in the U.S., is unavailable due to the government shutdown. While E-Verify is unavailable, employers will not be able to access their E-Verify accounts. More details on how this could impact your company’s operations can be found here.

Small Business Administration

• The SBA will not initiate new loan guarantees during the shutdown.

Occupational Safety and Health Administration

• With the exception of “imminent danger” to life or property and other emergency situations, OSHA’s investigation and enforcement activities will cease during the shutdown.

Department of the Interior

• Businesses who seek permits from the Fish and Wildlife Service could be affected. New permits or applications currently under review will not be processed during the government shutdown, which will increase costs and delays.

Environmental Protection Agency

• Businesses that file the Clean Water Act National Pollutant Discharge Elimination System permit in states where EPA is the primary permitting authority may notice a delay in issuance of their stormwater permits. These states are Idaho, Massachusetts, New Hampshire and New Mexico, along with the District of Columbia.
• The Energy Star program is shut down until further notice and the processing of all partner applications and partner inquiries has been put on hold. Updates to Energy Star qualified product lists and release of draft Energy Star specifications will also be delayed.

Internal Revenue Service

• Some lenders require home borrowers to file IRS form 4506-T to verify the mortgage applicant’s income and Social Security number. With the IRS shut down, this could result in major delays in some mortgage application approvals.

Economic Data

• Due to the shutdown, the August Census construction spending report was not published. The important monthly jobs report for September from BLS is unlikely to be published. And future reports on items like housing starts and new home sales could also be postponed.

In general, expect delays for any housing-related federal government programs that are still operating and plan accordingly. NAHB continues to closely monitor the situation, and we will keep you posted on any new developments.