Homeowner headlines

Because lenders have shown that they can’t necessarily be trusted to evaluate potential borrowers, the federal government will be setting standards that lenders must used to determine whether someone can repay a loan.

No, I’m not being snarky about lenders. That’s the sentiment of Consumer Financial Protection Bureau Director Richard Cordray.

When discussing the forthcoming QA rule — which tells lenders what they have to consider when deciding whether a borrower has the “ability to repay” — Cordray quipped, “You wouldn’t think that you would really need a rule that a lender would have to pay attention to whether or not a borrower could repay a loan.”

Let’s look at President Obama’s mortgage refinance plan. Its goals are to allow a lot more home owners to refinance at today’s lower rates, and thus pump more money into local economies. It will also reduce foreclosures, which might help bolster property values — not to mention allowing people to stay in their homes. 

Essentially, the plan the President outlined will allow any borrower, not just those with Fannie or Freddie loans, to refinance through the FHA if they meet the qualifications.

It’s estimated to save a typical borrower $3,000 a year — three grand being pumped back into local economies.

So, what’s a guy gotta do to qualify?

In another positive sign for Virginia’s economy and thus housing market, there seem to be more people moving into Virgina than out of Virginia.

Of note, Virginia is one of only 9 states where this is the case!

Source: KCM Blog

A couple of interesting pieces Out There about housing inventory. Keep in mind as you read them, of course, that so much about inventory is estimates; take it all with a grain of salt.

First there’s good ol’ “shadow inventory,” aka the foreclosure pipeline: homes that are not on the market yet, but are in or near foreclosure and thus will soon be available. There is much hand-wringing about how this lurking wave of distressed property will affect the rest of the market.

We’ve released the 4^th Quarter 2011 Virginia Home Sales Report, and for the second consecutive quarter there has been an increase in the annualized pace of home sales in Virginia.

Despite the improvement in the long-term sales pace, as shown above, median home prices have continued to decline in most regions of the state.

The increases in the pace of home sales have all taken place in price ranges under $200,000 – pictured above – with higher price ranges showing anywhere from a 3% to 24% decline over the past year.

Foreclosures have declined over the past quarter in almost all regions of the state — with foreclosures in Virginia declining 26% overall.  The most significant decreases in foreclosures took place in Southwest Virginia and the Central Valley region.

As we conclude 2011 and head into 2012, Virginia’s housing market will likely continue to stabilize, due to factors like low interest rates, rising residential rental rates, and an improving household balance sheet based on increases in household saving habits.

“We are encouraged by the overall numbers shown in the fourth quarter. The pace of home sales is picking up and without artificial stimulus proving that people are taking advantage of low interest rates and low home prices. This upcoming year is an optimistic one for real estate; one in which we hope to see stronger signs of recovery and stabilization,” said Virginia Association of REALTORS® President Trish Szego.

Highlights:

Virginia senators, delegates hold favorable views toward housing.

Virginia homeowners will be well-served by the representatives who were elected to the state Senate and House of Delegates in early November.

That's according to the Virginia Association of REALTORS®, which endorsed and supported a record number of successful candidates.

The association, representing the interests of both REALTORS® and homeowners, researches housing issues, reviews candidates' positions and track records, contributes to political campaigns and helps candidates communicate their views to voters, all with the aim of garnering support for housing.