Today’s News Synopsis:

HUD and the US Commerce Department said housing starts remained relatively the same in May, but overall starts continue to show positivity and seem to be on an upward trend.  Freddie Mac transferred $650 of credit risk to private investors and will be able to continue to do more with this due to the increasing number of private investors.  Several banks are expected to undergo stress tests again soon to see how they would hold up under economic stress.

In The News:

DS News – “The Week Ahead: It’s Stress Test Time Again for Banks” (6-19-16)

“The capitalization of the largest banks has been a concern since the start of the financial crisis, and the Federal Reserve wants to test the largest banks to see if they could remain capitalized enough to remain solvent during an economic downturn.”

Construction Dive – “Mortenson president: Construction industry is ‘a prisoner to bids’ – but change is on the horizon” (6-20-16)

“Mortenson President Dan Johnson celebrated his 30th year with the Minneapolis-based construction giant last week.  During his time at Mortenson, Johnson has seen the company launch new divisions, outgrow its headquarters and adapt to a rapidly changing industry landscape.”

Bloomberg – “Pimco Says ‘Storm Is Brewing’ in U.S. Commercial Real Estate” (6-20-16)

“U.S. commercial real estate prices may fall as much as 5 percent in the next 12 months amid tightened regulations, a wall of debt maturities and property sales by publicly traded landlords, Pacific Investment Management Co. said in a report Monday.”

Mortgage Professional America – “Morning Briefing: Housing starts flat in May but trend is positive” (6-20-16)

“There was little change in the number of nationwide housing starts in May but experts are optimistic that the market is moving in the right direction.”

Housing Wire – “Will homebuilders fill the void in housing for first-time buyers?” (6-20-16)

“The ability to save for a down payment has historically ranked as the biggest hurdle for first-time homebuyers, until now.”

DS News – “Freddie Mac Works to Involve Private Investors More” (6-20-16)

“Freddie Mac Monday announced it has reached a milestone for credit risk transfer, having transferred the risk on a total of $650 billion in unpaid principal balance on mortgage loans to the private market.”

Mortgage Professional America – “Carrington Mortgage appoints new EVP of wholesale lending division” (6-20-16)

“Thirty-year mortgage industry veteran, Patrick Flanagan, joins Carrington Mortgage Services as executive vice president of the wholesale lending division.”

ET Markets – “Real Estate Stocks Jump Up to 4% on Relaxation in REIT Rules” (6-20-16)

“Real estate stocks climbed up to 4 per cent in Monday’s trade after Sebi relaxed rules on Real Estate Investment Trusts (REITs) by allowing them to invest more in under-construction projects.”

Housing Wire – “FTC shuts down “appalling” multi-million dollar mortgage relief scam” (6-20-16)

“The Federal Trade Commission halted a massive mortgage relief scheme perpetrated by a series of law firms, which falsely promised to help struggling homeowners save their homes in exchange for hundreds or thousands of dollars in legal fees.”

 

 

Bruce Norris will be speaking at the 12th NSDREI Birthday Celebration on Tuesday, June 21.

Bruce Norris will be presenting his newest talk Stay Put, Cash Out, Or Change Seats? with LAREIC on Tuesday, July 12.

Aaron Norris will be presenting his newest talk Marketing Trends and Strategies for Real Estate Pros in 2016 with Pasadena FIBI on Thursday, July 21.

Image copyright source: www.flickr.com/photos/lendingmemo