CATEGORY ARCHIVE: Industry Stuff
May 11, 2012
Bonus Points For Number Of Offers In Addition To Price
Listed for $2,195,000 in 2008 and $1,895,000 in 2010, the single-family Noe Valley home at 1430 Diamond has returned to the market in 2012 listed for $1,795,000.
In general, the smaller the home the higher the price per square foot, and at 2,900 square feet, 1430 Diamond is well above the neighborhood average. That being said, having been listed at $619 per square foot in an area when the average home is currently trading at closer to $900 per square, a reader can’t help but wonder if this is another example of pricing well below market to generate traffic (while "wasting a lot of people’s time and attention" and "breaking many hearts").
With the observer effect now in play, if you think you know Noe, now’s the time to tell.
∙ Listing: 1430 Diamond (4/4) 2,900 sqft - $1,795,000 [1430diamond.com]
∙ Have You Heard The One About The House With Over 50 Offers? [SocketSite]
Posted by socketadmin at 6:30 AM | Permalink | Comments (7) | (email story)
May 8, 2012
Have You Heard The One About The House With Over 50 Offers?
From a plugged-in reader yesterday:
One of my buddies who works at [Facebook] told me today that he bid on a place on 20th Street that went for 65% over asking and had 52 offers. That must mean that there are 51 more people out there looking in the neighborhood. Anyone know which place he was talking about?
That would be 3928 20th Street, the sale of which has been mentioned before.
There are a couple of interesting similarities between the sale of 3928 20th Street which generated over fifty (50) offers and the sale of 4379 Cesar Chavez which generated over twenty (20).
Both properties were listed at roughly $600 per square foot in neighborhoods where the average sale price has been running over $800 per square. Both homes were well suited for expansion. And both properties just so happened to be priced by the same agent.
∙ It Would Have Been 50 Percent Over Had They Priced At A Million... [SocketSite]
∙ Listing: 3928 20th Street (3/1) 1,416 sqft - $849,000 [Redfin]
∙ It's Not This Mid-Century Modern Noe Valley Home That Was Flawed [SocketSite]
Posted by socketadmin at 10:00 AM | Permalink | Comments (78) | (email story)
May 1, 2012
Offers On The Illegally Gutted House At 33 Fountain Overflow
As we reported at the end of March after which a number of plugged-in readers chimed in:
Having sold for $675,000 a year ago, and with a permit to simply remodel the kitchen and bathrooms in-kind pulled since, the single-family home at 33 Fountain was gutted instead.
And while there might be plans to expand and double to size of the home, and it’s listed on the MLS [for $999,900] with the four bedrooms and baths that don’t yet exist, keep in mind said plans and pictured new framing haven’t been submitted to Planning, much less approved.
A few hours later, an anonymous complaint was filed with the Department of Building Inspection ("Beyond Scope of work. Entire building gutted."). And yesterday, the sale of 33 Fountain closed escrow with a reported contract price of $1,355,000.
∙ Buyer (And DBI) Beware [SocketSite]
Posted by socketadmin at 7:00 AM | Permalink | Comments (28) | (email story)
April 25, 2012
Will Wells Profit From This Noe Valley Foreclosure?
With a 2008 era mortgage for $910,000 long past due, last year Wells Fargo foreclosed upon the Noe Valley home of Kathryn Galves at 1164 Church Street. From "Occupy the Auctions" which unsuccessfully lobbied to keep Ms. Galves in the home:
Kathryn Galves purchased her lovely home at 1164 Church Street in 1972 and the home increased in value considerably over the years. She is a military widow who banked on the increased value of her property to invest in an out-of-state property with a Section 8 (affordable public housing) tenant. The investment did not go well and she lost more to book sales customers who didn’t pay for their orders.
Kathryn lives on a fixed annuity income and her live-in sister earns a meager living as a caretaker. When her financial situation went sour, Kathryn filed a Chapter 13 bankruptcy, but Wells Fargo Bank successfully challenged the bankruptcy, then foreclosed on her home and it went to foreclosure auction. No one bid for the property at auction [at which the opening bid was $1,081,123], so it became “bank-owned”, that is, owned by Wells Fargo. Wells Fargo has filed for the San Francisco Sheriff to evict Kathryn, her sister, and their dog from her home of 40 years.
Kathryn has found a long-term neighbor who is willing to purchase her home and let her, her sister, and their dog remain in the home. Despite many requests by Kathryn and the prospective buyer, Wells Fargo has refused to come to the bargaining table regarding selling the home.
Ms. Galves ended up accepting $7,500 to voluntarily leave the property prior to eviction by the Sheriff and not sue Wells Fargo, she has since vacated the property.
Yesterday, 1164 Church Street hit the MLS listed for $849,000 and touting "Great price, won't last!" with "offers due 5/1 by noon." And yes, priced at $494 per square foot, we’d be willing to bet the sale will be "over asking!" (and perhaps even more than was owed).
∙ Listing: 1164 Church Street (2/2) 1,722 sqft - $849,900 [Pacific Union]
∙ Stop the Eviction of Kathryn Galves, Her Sister, and Their Dog [occupytheauctions.org]
∙ It's Not This Mid-Century Modern Noe Valley Home That Was Flawed [SocketSite]
Posted by socketadmin at 3:00 PM | Permalink | Comments (37) | (email story)
April 11, 2012
Bank of America's Short Sales Get Shorter Come Saturday
On Saturday, Bank of America will implement a new workflow for processing short sales. While the time from offer to acceptance (or not) currently averages well over a month for short sale listings, the new process is expected to yield a decision in under three weeks.
∙ Bank of America Refines the Short Sale Process [bankofamerica.com]
Posted by socketadmin at 10:00 AM | Permalink | Comments (0) | (email story)
February 16, 2012
Foreclosure Flaws Uncovered In San Francisco
From the New York Times with respect to the results of an audit commissioned by San Francisco assessor-recorder Phil Ting that reviewed roughly 400 foreclosures that occurred in San Francisco from 2009 to 2011:
About 84 percent of the files contained what appear to be clear violations of law, it said, and fully two-thirds had at least four violations or irregularities.
The report, which was compiled by Aequitas Compliance Solutions, a mortgage regulatory compliance firm, did not identify specific banks involved in the irregularities. But among the legal violations uncovered in the analysis were cases where the loan servicer did not provide borrowers with a notice of default before beginning the eviction process; 8 percent of the audited foreclosures had that basic defect.
In a significant number of cases — 85 percent — documents recording the transfer of a defaulted property to a new trustee were not filed properly or on time, the report found. And in 45 percent of the foreclosures, properties were sold at auction to entities improperly claiming to be the beneficiary of the deeds of trust. In other words, the report said, “a ‘stranger’ to the deed of trust,” gained ownership of the property; as a result, the sale may be invalid, it said.
In 6 percent of cases, the same deed of trust to a property was assigned to two or more different entities, raising questions about which of them actually had the right to foreclose. Many of the foreclosures that were scrutinized showed gaps in the chain of title, the report said, indicating that written transfers from the original owner to the entity currently claiming to own the deed of trust have disappeared.
A big question: could the flaws result in clouds on title for the foreclosed upon homes?
∙ Audit Uncovers Extensive Flaws in Foreclosures [New York Times]
Posted by socketadmin at 6:00 AM | Permalink | Comments (27) | (email story)
January 24, 2012
The LAPD Tells Realtors To Buzz Off
A plugged-in tipster forwards an alert from the California Association of Realtors warning its members not to hire or fly unmanned aircraft to capture aerial photographs for the marketing of high-end properties.
[A] Los Angeles Police Department's (LAPD) investigation has…revealed that aerial photos where unmanned aircraft were observed have appeared on certain real estate sales websites. According to FilmL.A., the LAPD Air Division has issued [a] warning as it intends to prosecute violators in the near future.
Under the Federal Aviation Administration (FAA)'s current policy, no one can operate an unmanned aircraft in the National Airspace System without specific authority. Operators who wish to fly an unmanned aircraft for civil use must obtain an FAA experimental airworthiness certificate, which will not be issued to an unmanned aircraft used for compensation or hire. Although the FAA allows hobbyists to fly model airplanes for recreational purposes under specific guidelines, that authority does not extend to operators flying unmanned aircraft for business purposes.
In the words of our industry tipster, "I don’t know if any 'drones' have buzzed the SF skyline to shoot films yet, but…agents up here have talked about trying it."
Posted by socketadmin at 9:45 AM | Permalink | Comments (7) | (email story)
December 21, 2011
It Would Have Been 50 Percent Over Had They Priced At A Million...
Listed for $1,100,000 last month, the 1,810 square foot Albert Lanier designed home at 4378 Cesar Chavez quickly went into contract. As a plugged-in reader soon reported, "The sign in the Herth window says…22 offers received," and as another reader soon followed:
That's lame. Those guys missed the price point and they were the first to admit it during showings.
They wasted a lot of people's time. Yet there they are, touting how badly they gauged the market. Great.
The sale of 4378 Cesar Chavez closed escrow yesterday with a reported contract price of $1,540,000. And yes, that’s 40 percent "over asking" which could have been 50 percent over had they listed it for a million.
∙ Channeling Mid-Century Modern Flair At 4378 Cesar Chavez [SocketSite]
Posted by socketadmin at 4:45 PM | Permalink | Comments (25) | (email story)
December 6, 2011
Your Right To Request An Accounting Or Refund Of Rental Fees
As a plugged-in reader correctly surmised yesterday, and another correctly handles, it’s against the law for a landlord or broker to keep an application fee for an apartment in San Francisco without using said fee to run a credit check and actually process the application.
In other words, if you’re one of the anecdotal 249 applicants who paid a $40 application fee but failed to secure that $3,500 loft in the Mission, or any other applicant who paid an application fee but failed to land the apartment, you have the right to demand a copy of your credit check and an accounting for how the remainder of your application fee dollars were spent, and if they weren’t, the right to demand a refund.
As an aside, if you receive a copy of your requested credit check and realize it was run after the apartment was already rented, let us know.
∙ An Uptick In Application Fees And Frustrations In San Francisco [SocketSite]
Posted by socketadmin at 9:00 AM | Permalink | Comments (13) | (email story)
November 8, 2011
A Rather Quick Close For 393 Cumberland
The sale of the Ogrydziak/Prillinger redesigned house at 393 Cumberland closed escrow yesterday with a reported contract price of $2,027,475 ($1,198 per square foot). And yes, closing escrow after an official "seven days on the market" might suggest the property was in contract prior to being listed on the MLS for $2,095,000.
∙ Inside The "Modernist-Inspired" House Atop The Cumberland Steps [SocketSite]
Posted by socketadmin at 8:15 AM | Permalink | Comments (5) | (email story)
October 12, 2011
Listing License (And An "Updated" Kitchen In Question)
Speaking of listing license, from a reader with respect to the listing for 53 Manzanita which notes an "Updated kitchen":
It drives me insane when realtors say "updated kitchen" when that update occurred 40+ years ago. I would bet that the original cabinets are still intact as are most of the appliances. That isn't "updated" in my book. There oughta be a law...
As far as we know there aren't any laws when it comes to listings, and perhaps nary a rule.
As we noted back in 2006 after we first exposed the practice of relisting to "refresh" an unsold property and its official days on the market (DOM):
The National Association of Realtors Code of Ethics provides that "Realtors shall be careful at all times to present a true picture in their advertising and representations to the public," though Lucien Salvant, a spokesman for NAR, said that MLSs are not considered advertising vehicles."
And as we wrote at the time, taking the position that "MLSs [and by extension their listings] are not considered advertising vehicles" is an utterly asinine argument.
Our assessment of NAR's aforementioned position hasn't changed.
∙ Mad Men On Manzanita [SocketSite]
∙ Sorry NAR, But No [SocketSite]
∙ You Can Relist, But You Can’t Hide [SocketSite]
Posted by socketadmin at 4:00 PM | Permalink | Comments (39) | (email story)
September 2, 2011
Feds Set To Seek Billions From Big Banks
"The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks [including Bank of America, JPMorgan Chase, and Goldman Sachs], accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation."
∙ U.S. Is Set to Sue a Dozen Big Banks Over Mortgages [New York Times]
Posted by socketadmin at 7:30 AM | Permalink | Comments (54) | (email story)
August 23, 2011
The Unreported Sale Price For 33 Prosper
Purchased by Mr. Muhawieh for $920,000 in 2007, as plugged-in people know, a 33 Prospect in progress was taken back by the bank and resold for $770,000 this past April.
Having since been redesigned and rebuilt as "a modern showcase for urban living," the now 2,770 square foot home is back on the market and asking $2,350,000.
Wood, stone, and a fewoddmodernshowcase angles abound.
Officially "withdrawn" from the MLS in May when last listed for $2,149,000, it’s a plugged-in reader that notes the sale of 33 Prosper closed escrow the next month with a recorded but unreported contract price of $2,040,000.
Once again, it’s a violation of MLS member rules to fail to report the sale and selling price of a recently listed property, even if said listing has been withdrawn from the MLS (within three months of a sale we believe).
UPDATE: Within a few hours of our post, the July sale price for 33 Prosper was reported on the MLS. Cheers.
∙ A Rebuilt 33 Prosper Returns As A "Modern Showcase" [SocketSite]
∙ Two More Muhawieh Comps Of Yore Head For The Courthouse Steps [SocketSite]
∙ A Not So Prosperous At (And Under) Asking Sale For 33 Prosper [SocketSite]
∙ An Ironic Address For Another Ex-Muhawieh Property (33 Prosper) [SocketSite]
∙ The Unreported Sale Price For The Penthouse Atop One South Park [SocketSite]
Posted by socketadmin at 10:00 AM | Permalink | Comments (4) | (email story)
August 9, 2011
To Short Sale Or Foreclose, That Is The Question Of The Day
The proposed short sale of 2040 Broadway #301 has been in contract since June 1 but still hasn’t closed escrow per the MLS. Purchased for $1,850,000 in 2004, the 2,052 square foot view condo has since been refinanced with $2,320,000 in debt which has been in default for over two years.
Speaking of which, the Pacific Heights condo is also scheduled to hit the courthouse steps on Thursday with $2,585,553 owed on a $2,000,000 note.
∙ Listing: 2040 Broadway #301 (3/3.5) 2,052 sqft - $2,100,000 [MLS]
Posted by socketadmin at 1:00 PM | Permalink | Comments (3) | (email story)
May 11, 2011
Super Conforming Limits In San Francisco Set To Expire September 30
From the New York Times with respect to "super conforming" loan limits, part of an economic stimulus bill first passed in 2008:
For the last three years, federal agencies have backed new mortgages as large as $729,750 in desirable neighborhoods in high-cost states like California, New York, New Jersey, Connecticut and Massachusetts. Without the government covering the risk of default, many lenders would have refused to make the loans. With the economy in free fall, Congress broadened its traditionally generous support of housing to a substantial degree.
But now Democrats and Republicans agree that the taxpayer should no longer be responsible for homes valued well above the national average, and are about to turn a top slice of the housing market into a testing ground for whether the private mortgage market can once again go it alone. The result, analysts say, will be higher-cost loans and fewer potential buyers for more expensive homes.
Without a third extension, "super conforming" loan limits up to $729,750 in San Francisco will expire at the end of September. And while President Obama signed the extension last year, it's unlikely he would do so again even if Congress were to pass a bill.
A Federal Housing Administration spokeswoman declined to comment but pointed to the Obama administration’s position paper on reforming the housing market. "Larger loans for more expensive homes will once again be funded only through the private market," it declares.
∙ Federal Retreat on Bigger Loans Rattles Housing [New York Times]
∙ If Lowering Rates Isn’t Working, Perhaps Increasing Limits Will [SocketSite]
∙ Another Year For Super Conforming Limits (Assuming Obama Signs) [SocketSite]
Posted by socketadmin at 1:30 PM | Permalink | Comments (39) | (email story)
Apples To Apples (And Sour Statistics) For 333 Oak Park Drive
Purchased for $775,000 a year ago (April 2010), the single-family Forest Knolls home at 333 Oak Park Drive has returned to the market listed for $875,000.
In the words of a couple of readers wondering about its return, "from what we can gather, there is little more than a lick of paint (internally) and an amazing collection of contemporary art which is, sadly, not included in the sale."
As best we can tell, no permits for major work have been issued since its April purchase, nor have the street level third bedroom and bath which were built without permits according to its listing last year been legalized.
And while we might debate the amazing call with respect to the collection of art, unless we missed a permit, we are calling this an apple to be.
The resale of 333 Oak Park Drive closed escrow on Friday with a reported contract price of $800,000, up 3 percent year-over-year. On the same day the $800,000 sale was recorded the list price for the property was reduced to $800,000 on the MLS as well.
So in terms of MLS based market statistics and industry reports, it’s another "at asking" sale versus 3 percent under the price at which it was listed when the property went into escrow ($829,000) or 9 percent under the price at which it was originally listed in March.
∙ Apples To Apples (And A Little Art Later) 333 Oak Park Drive Returns [SocketSite]
Posted by socketadmin at 8:15 AM | Permalink | Comments (34) | (email story)
May 6, 2011
Well, It Really Wasn’t The Seller Who Came Up Short On 12 Auburn...
As we wrote in January:
So there's no deeded parking and Nob Hill, but it is a rather cute little two-bedroom at 12 Auburn that’s just returned to the market after a one-month hiatus, only it's now listed as a short sale for "$699,000" having been purchased for $700,000 in May 2005.
The property had been listed for as much as $898,000 just four months ago prior to three prices reductions and then being withdrawn from the MLS at the end of December.
The sale of 12 Auburn closed escrow today with a reported contract price of $678,400, three percent ($21,600) under its 2005 price. Don’t feel too sorry for the seller, however, as the property was refinanced in 2007 with a first mortgage for $712,500 and a second for $142,000, a total of $854,500 in debt for which the property would have had to appraise.
And yes, the short-seller, who was also the agent, was in default with JPMorgan Chase at the time of the sale.
∙ 12 Auburn Comes Up Short On Nob Hill [SocketSite]
Posted by socketadmin at 2:45 PM | Permalink | Comments (9) | (email story)
May 5, 2011
Hopefully You Didn’t Step In It At Park Terrace (325 Berry) Before
As we wrote in January 2008 when the sales office at Park Terrace launched a "step-up commission program" targeting buyers’ agents:
It’s no longer only the townhomes at Park Terrace which will garner brokers an increased sales commission (which might speak to the strength of sales since our last update). And it’s a good reminder to ask, is your agent working for you or selling for the developer?
A few months before in August 2007, 325 Berry #301 sold for $1,181,000. The two-bedroom Park Terrace unit just returned to the market listed for $899,000, a sale at which would represent a 24 percent ($282,000) drop in value for the 1,259 square foot condo with "water views!" over the past three and one-half years.
Unfortunately we haven’t heard of any "step-down" loss or commission programs for those who are now trying to sell.
∙ Listing: 325 Berry #301 (2/2) 1,259 sqft - $899,000 [MLS]
∙ Your Agent Might See Value, But Be Sure To Ask For Whom [SocketSite]
∙ Arterra's New Buyer's Incentive And Park Terrace’s Broker's Bonus [SocketSite]
∙ Park Terrace (325 Berry) Sales Update: Now 70% Sold? [SocketSite]
Posted by socketadmin at 3:30 PM | Permalink | Comments (3) | (email story)
May 3, 2011
Department Of Justice Files FHA Fraud Suit Against Deutsche Bank
As a plugged-in reader notes, the United States has filed a civil mortgage fraud lawsuit against Deutsche Bank and its wholly owned subsidiary MortgageIT for falsely certifying loans were eligible for FHA guarantees without conducting the required due diligence.
Between 1999 and 2009, MORTGAGEIT was an approved direct endorsement lender, and endorsed more than 39,000 mortgages for FHA insurance, totaling more than $5 billion in underlying principal obligations. These mortgages were highly marketable for resale to investors because they were insured by the full faith and credit of the United States. MORTGAGEIT and DEUTSCHE BANK, which acquired MORTGAGEIT in January 2007, made substantial profits through the resale of these endorsed FHA-insured mortgages.
According to the Complaint, MORTGAGEIT repeatedly made false certifications to HUD to obtain approval of mortgages that MORTGAGEIT underwriters wrongfully endorsed for FHA insurance. These mortgages were not eligible for FHA insurance under HUD rules. Notwithstanding the mortgages' ineligibility, underwriters at MORTGAGEIT endorsed the mortgages by falsely certifying that they had conducted the due diligence required by HUD rules when, in fact, they had not. By endorsing ineligible mortgages and falsely certifying compliance with HUD rules, MORTGAGEIT wrongfully obtained approval of these ineligible mortgages for FHA insurance, thereby putting millions of FHA dollars at risk.
To date, FHA has paid insurance claims on more than 3,100 mortgages, totaling $386 million, for mortgages endorsed by MortgageIT.
As plugged-in people know, at the begining of 2008 FHA insured mortgages accounted for less than 0.5 percent of all Bay Area home sales, jumping to 20 percent by the end of that year. This March, the percentage was 22.4.
∙ DOJ Sues Deutsche Bank for Reckless Lending Practices [justice.gov]
∙ FHA To Tighten Its Belt, But With Its Fly Wide Open? [SocketSite]
∙ San Francisco Recorded Sales Activity Down 1.0% In March [SocketSite]
Posted by socketadmin at 2:50 PM | Permalink | Comments (5) | (email story)
April 30, 2011
The Now Public Details For The Painful Situation We Posted Last Week
While we didn't disclose the details last week, the recent buyer of a unit above an S&M enthusiast has decided to go public, perhaps as the reality of our reader's words of wisdom with respect to litigation has set in. The first third of the buyer's detailed public plea:
When I closed the deal last Friday for [removed by editor] in Glen Park, my new condo in a 2-unit building, I had no idea my downstairs co-owner was a self-described "sex enthusiast" who engages in loud S&M "leather sex" on a regular basis. I learned this not from the seller or his agent, but via an email from the co-owner himself, which I received last Sunday night, after close.
The mere fact of the co-owner's sexual preference doesn't bother me in the least. But the possibility of it coming to the attention of my 10 year old son, whose bedroom was to be directly over the downstairs bedroom, enrages me.
By what measure does this not require disclosure? All parties to the sale knew I had a young boy who would be living with me. And I had expressed to my agent directly my concern over the possibility of an S&M dungeon in the common garage area, as that would be an inappropriate feature in a child's environment.
Neither the seller or his agent told me about the use and type of noise coming from the lower unit, though the co-owner writes that this was a topic of conversation several times between the seller and him.
The level of noise transmitted between the units has been an ongoing issue. In fact, renovation of the seller's unit was undertaken as recently as this year to help abate the noise: new sound proof padding and carpeting were added.
Despite the possibility that my 10 year old would be negatively affected by this noise type and unit use, this fact was kept from me during a full 6 weeks while I decided whether to purchase the condo.
I implored both realty companies to rescind the sale. They both said get a lawyer, we can't help.
While we tried to keep the details private, and encouraged others to do so as well, we can't put the genie back in the bottle for the buyer's now very public plea.
∙ A Painful Situation For A Plugged-In Reader (And Plea For Help) [SocketSite]
∙ No disclosure + no due diligence = New mortgage but no new home [Redfin]
Posted by socketadmin at 3:00 PM | Permalink | Comments (64) | (email story)
April 22, 2011
55 Laguna Back In Play
While a joint venture between Barker Pacific Group, Luzzatto Co. and Lion Real Estate Group has acquired A.F. Evans $300 million affordable housing portfolio, according to the San Francisco Business Times, Atlanta-based Wood Partners is in negotiations to acquire and revive A.F. Evans Board approved development at 55 Laguna Street.
∙ Barker Pacific bites into A.F. Evans’ portfolio [Business Times]
∙ Wood Partners eyes housing prize: 55 Laguna St. [Business Times]
∙ Local Housing Developer AF Evans Files For Bankruptcy Protection [SocketSite]
∙ 55 Laguna: The Plugged-In (And A.F. Evans) Development Update [SocketSite]
∙ 55 Laguna: Approved On Appeal And In Front Of San Francisco’s BOS [SocketSite]
Posted by socketadmin at 8:15 AM | Permalink | Comments (1) | (email story)
April 21, 2011
353 San Jose: Poised For Redevelopment (And Planning’s Purview)
The proposed demolition of the small single-family home at 353 San Jose and development of a three story, four-unit multifamily dwelling in its place is poised to be formally approved by San Francisco’s Planning Commission this afternoon.
Originally heard by the Commission in December, and with a design that was actually approved in March, a vote on the proposed project was twice continued to allow the Project Sponsor an opportunity to "alter the design of the Proposed Project in accordance with the direction given by the Planning Commission."
Three points of the Commission’s direction which probably wouldn’t have caught many by surprise: 1. The design must be more responsive to the surrounding context; 2. The Proposed Project should provide additional setback or notching to reduce mass; and 3. The Proposed Project should not exceed three stories in scale.
Two points of direction which might have made sense but perhaps seemed beyond the Commission’s purview: 1. The internal circulation should be reconsidered to eliminate inefficiencies; and 2. The units should be redesigned to meet the needs of a family with elderly members, with respect to physical accessibility.
Regardless, the developer addressed all five.
∙ 353 San Jose Mandatory Discretionary Review [sfplanning.org]
Posted by socketadmin at 11:45 AM | Permalink | Comments (1) | (email story)
Another Listing On Lyon
With 33 of its 71 listing photos featuring neighborhood establishments within a one mile radius, it might be a new record. And it might explain such classic listing photo captions as: "Another deli" and "Another picture of the Sundance Theatres."
∙ Listing: 1407 Lyon Street (4/4) 2,887 sqft - $1,795,000 [MLS]
Posted by socketadmin at 7:15 AM | Permalink | Comments (15) | (email story)
April 14, 2011
An Amazing Down To The Studs "$75,000" Renovation At 55 Rico Way
The down-to-the-studs remodel in 2004 included a horizontal addition, so we’re assuming the single-family Marina home at 55 Rico Way is living larger than the 1,846 finished square feet per public records (the listing doesn’t specify beyond "greatly expanded").
Per the permit, the estimated cost for the down to the studs renovation and expansion of the home was $75,000, the figure off of which permit fees would have been figured.
We’d be willing to bet the cost of renovating the kitchen alone ran close to $75,000, and yet some wonder why minimum permit fees have had to be raised for all.
∙ Listing: 55 Rico Way (3/3) - $2,200,000 [55rico.com] [MLS]
Posted by socketadmin at 12:00 PM | Permalink | Comments (45) | (email story)
March 24, 2011
It’s A Gas, Gas, Gas In Hayes Valley
It’s not yet listed and its website is still coming soon, but we have the inside scoop on the music video that's been produced to showcase 457 Oak Street #1.
Purchased for $425,000 in October 2008, the one-bedroom TIC is returning to the market asking $429,000 with a new gas line run to the kitchen and to which a gas range with convection oven is now attached.
Consider the market (and background music) bar officially raised.
∙ Coming Soon: 457 Oak Street #1 (1/1) - $429,000 (TIC) [457oakstreet1.com]
Posted by socketadmin at 12:15 PM | Permalink | Comments (27) | (email story)
March 9, 2011
Just "52 Days On The Market" (And $789 Per Square) For 41 Castle
As a plugged-in reader notes, the sale of 41 Castle closed escrow yesterday with a reported contract price of $2,500,000 ($789 per square foot). The 3,170 square foot recently rebuilt Telegraph Hill house had been listed for $3,950,000 in June 2007.
Last asking $2,750,000 having been reduced and relisted anew four times, three times in the past year alone, it’s officially 9 percent under asking and just 52 days on the market according to industry statistics.
∙ A Castle Perch From Which To Ponder San Francisco (And DOM Stats) [SocketSite]
Posted by socketadmin at 11:45 AM | Permalink | (email story)
March 4, 2011
Price Per Square Foot Out Of Whack? Reduce Remove It…
A plugged-in tipster moving to San Francisco and searching for a house reports:
On February 28, 716 Sanchez Street hit the market with a list of $2.45M for the 2100 sqft house. That comes to a whopping $1187/sqft which is way out of whack with both comps and listing in the neighborhood.
When I checked back on March 2, the listing had been "updated". The only change was that the number of square feet was removed! I suppose that's one way to make the place look more reasonably priced.
The fully renovated 716 Sanchez had first been listed for sale in 2008 asking $2,650,000 ($1,262 per square foot) having been purchased for $1,175,000 in 2003 as a much less modern 1,250 square foot home.
∙ Listing: 716 Sanchez (3/2) 2,100 sqft - $2,450,000 [716sanchez.com] [MLS]
Posted by socketadmin at 6:00 AM | Permalink | Comments (76) | (email story)
December 27, 2010
Riddle Us This...
Often misunderstood if not misrepresented as a sign of a bullish market, we harp on touts of "over asking" all the time. And when we do, we’re often met with a minor chorus chant of "you’re the only ones that care."
So riddle us this, when 2939 and 2921 Vallejo sold for a combined $9,500,000, having been listed for $8,500,000 and $2,250,000 respectively, and the MLS was updated to report the combined sale price on the listing for 2939 while the listing for 2921 Vallejo was simply withdrawn, why wasn’t the list price on the listing for 2939 Vallejo updated to accurately reflect the combined transaction as well?
Keep in mind that industry statistics and newsletters with respect to the market, as well as agent league tables, are based on the data which is self-reported on the MLS.
∙ Over Asking! (But Four Percent Less Than Seven Months Ago) [SocketSite]
∙ Over Under Asking For 2939 Vallejo (Plus The Lot Next Door) [SocketSite]
Posted by socketadmin at 10:00 AM | Permalink | Comments (19) | (email story)
December 23, 2010
Over Under Asking For 2939 Vallejo (Plus The Lot Next Door)
A reader comments that Curbed has reported (with exclamation points!) that 2939 Vallejo "sold for $1,00,000 (sic) above asking. $9,500,000 clams!" Unfortunately, it didn’t.
While the sale price was $9,500,000, and 2939 Vallejo was listed for $8,500,000, the sale included the lot next door (2921 Vallejo) which was listed separately for $2,250,000. In other words, it was actually $1,250,000 (12%) under asking for the two.
But hey, why bother to be right when reporting real estate. And yes, MLS based statistics, reports, and industry newsletters will reflect "over asking!" for the sale as well.
∙ You See, It's Not Pacific Heights Prices That Are Falling... [SocketSite]
∙ Listing: 2939 Vallejo (4/5.5)/2921 Vallejo (lot) - $8,500,000/$2,250,000 [sfproperties]
∙ 2939 Vallejo Gets $1M Above Asking Price [Curbed]
Posted by socketadmin at 1:15 PM | Permalink | Comments (18) | (email story)
December 20, 2010
2041 Sacramento Cuts Again But Gains Three Exclamation Points!!!
While the foreclosure of 2041 Sacramento was inexplicably reported as a "sale at $1,950,000" on the San Francisco Association of Realtors MLS in October, as plugged-in people know it wasn’t.
And while the property returned to the market a few days later asking $1,695,000, in November its list price was reduced to $1,577,700. And as a plugged-in reader notes, on Friday it was reduced to $1,499,000 ("DRASTIC REDUCTION for quick sale!!!…Won't last!").
Purchased for $2,286,500 in June 2007, a sale at asking would represent a 34 percent ($787,500) drop in value over the past three and one-half years for the "beautiful house-like top floor 2-level 3BR/3BA condo in prime location across from Lafayette Park."
∙ Listing: 2041 Sacramento (3/3) 2,503 sqft - $1,499,000 [MLS]
∙ At Least The MLS Is Accurate In Terms Of The Reduction... [SocketSite]
∙ While The MLS Reports A "Sale," Public Records Report A Foreclosure [SocketSite]
∙ A Year Later An Apple Falls In Pacific Heights (2041 Sacaramento) [SocketSite]
∙ An Apples To Apples (And Rather Prime) Update For 2041 Sacramento [SocketSite]
∙ North To South (And Apples To Apples) From Atop 2041 Sacramento [SocketSite]
Posted by socketadmin at 9:30 AM | Permalink | Comments (24) | (email story)
December 10, 2010
Did They Say November December? Make It January.
With three days to go before the December 13 deadline, which was extended to December ten days before the original November 18 deadline, the deadline for developers to declare their intentions to compete for the development rights to San Francisco’s Pier 70 was just extended once again.
The new new dealine is now noon on Monday, January 10, 2011. Interns, you should now feel free to enjoy those holiday parties this weekend.
∙ Pier 70 Deadline Extended (Prior To Any Punking) [SocketSite]
∙ Now Calling All Developers For San Francisco’s Pier 70 [SocketSite]
∙ JustQuotes: Bad Market, Then Back To Big Projects Like Pier 70 [SocketSite]
Posted by socketadmin at 5:45 PM | Permalink | Comments (8) | (email story)
October 19, 2010
While The MLS Reports A "Sale," Public Records Report A Foreclosure
While a sale of 2041 Sacramento was reported on the MLS October 4 with a contract price of "$1,950,000," it would now appear the Pacific Heights condo overlooking Lafayette Park and Cathedral Hill was actually foreclosed upon with $1,880,877 owed.
Yesterday, the property returned to the market and MLS listed at $1,695,000.
And once again, the top-floor condo was purchased for $2,286,500 in June 2007, had been listed for $2,095,000 a little over a year ago (reduced to $1,999,000), and was relisted as a short sale for "$1,695,000" this past January.
∙ Listing: 2041 Sacramento (3/3) 2,503 sqft - $1,695,000 [MLS]
∙ A Year Later An Apple Falls In Pacific Heights (2041 Sacaramento) [SocketSite]
∙ An Apples To Apples (And Rather Prime) Update For 2041 Sacramento [SocketSite]
∙ North To South (And Apples To Apples) From Atop 2041 Sacramento [SocketSite]
Posted by socketadmin at 10:00 AM | Permalink | Comments (34) | (email story)
October 18, 2010
Bank Of America To Resume Judicial Foreclosures Next Week
While Bank of America has announced that it will resume foreclosures next week in the 23 states which require judicial proceedings, foreclosures in the 27 non-judicial states (which includes California) remain in a holding patern and under review.
∙ Bank Of America Extends Foreclosure Sale Moratorium To All States [SocketSite]
Posted by socketadmin at 1:45 PM | Permalink | Comments (16) | (email story)
October 12, 2010
35 Lloyd Redux: It's Getting Hot Out There In Here...
Having been continued from the meeting on September 16, the proposed four-story development at 35 Lloyd is back in front of San Francisco’s Planning Commission this Thursday.
Once again, the Planning Department recommends approval of the plans for the undeveloped lot, the neighbors oppose, and the majority of supporters all work for Vanguard Properties (although none self-identified as such).
A bit of background from a plugged-in reader:
The lot has always been the garden for 45 Lloyd. The original owner, Max Wisenhutter, split the lot around 1900 (according to Sanborn Maps). He kept one lot and gave the other to his daughter. The daughter sold both lots in the 60s to Herb Donaldson.
Herb passed away in December 2008, and his estate sold the house and garden separately to cover estate taxes. They took the first offer they got, which is why it went so cheap. Most neighbors didn't even know the garden was a separate lot until it sold.
The lot sold for $635,000 in October of last year.
UPDATE: Added as an addendum to the Planning Commission packet for 35 Lloyd, the project sponsors have noted that of the 18 letters of opposition received for the project, the authors of 12 letters live in houses as tall as the proposed project. Images of said houses were included for good measure.
The project sponsors also cite "inaccuracies and inconsistencies" in the opponents renderings of the proposed project.
∙ Who (Or What) Will Get To See The Light Of Day On Lloyd? [SocketSite]
∙ The Vanguards Of Development For 35 Lloyd [SocketSite]
Posted by socketadmin at 1:00 PM | Permalink | Comments (13) | (email story)
September 15, 2010
The Vanguards Of Development For 35 Lloyd
A plugged-in reader’s comment with respect to the proposed development of the lot at 35 Lloyd couldn’t help but catch our eye. Of the 15 letters received by the Planning Department in support of the project, 10 were by way of agents of Vanguard Properties, including the brokerage’s president. Not one of the ten felt compelled, however, to note their affiliation with Vanguard.
As our reader also noted, the buyers and proposed developers of the lot at 35 Lloyd previously developed 943 Church, a project for which Vanguard provided both sell-side and buy-side representation for the developed property.
∙ Who (Or What) Will Get To See The Light Of Day On Lloyd? [SocketSite]
∙ 35 Lloyd Street (aka 37‐39 Lloyd Street) Discretionary Review [sf-planning.org]
∙ Another Friday, Another New Price: 943 Church Street One And Two [SocketSite]
Posted by socketadmin at 1:00 AM | Permalink | Comments (28) | (email story)
August 27, 2010
A Castle Perch From Which To Ponder San Francisco (And DOM Stats)
Having been rebuilt in 1999, the single-family home at 41 Castle returned to the market listed for $3,950,000 in June 2007. Relisted that September, its list price was subsequently reduced to $3,695,000 before being withdrawn from the market two months later.
41 Castle reappeared on the MLS this past January asking $3,350,000. In April its list price was reduced to $2,995,000. And in June it was reduced to $2,750,000 before being withdrawn from the MLS in July.
Today, 41 Castle was listed anew for the fourth time. Once again asking $2,750,000, but now staged. And of course, it’s "one day" on the market according to industry DOM stats.
∙ Listings: 41 Castle (4/4.5) 3,170 sqft - $2,750,000 [ninahatvany.com] [MLS]
Posted by socketadmin at 1:15 PM | Permalink | Comments (15) | (email story)
August 18, 2010
Currently Asking 17% Less Than Its Last Mortgage In Pacific Heights
2543 Vallejo has been on our readers’ radar for just about a year. Purchased in January 2000 with a $1,395,000 variable rate loan, the Pacific Heights property was refinanced in February 2003 with a $1,680,000 variable rate loan, and then again in April 2007 with a $2,900,000 variable rate loan.
A month later a $500,000 line of credit was extended on the house as well.
In April of 2009 a notice of trustee sale (NOTS) was filed with $3,149,895 owned on the mortgage, and this past March the property was taken back by the bank with $3,224,168 due on the mortgage at the time.
Listed on the open market for $2,652,000 this past April, the single-family home has been on the market asking $2,395,000 since the beginning of June.
UPDATE: After we posted this morning, the list price for 2543 Vallejo was reduced from $2,395,000 to $2,349,900 after two months without a change.
∙ Listing: 2543 Vallejo (3/3.5) 2,788 sqft - $2,395,000 [MLS]
∙ An Appreciation (Just Not "Appreciation" Per Se) For 2668 Vallejo [SocketSite]
Posted by socketadmin at 8:45 AM | Permalink | Comments (51) | (email story)
August 5, 2010
Some Janky Jenky Dealings Within The DBI And Developer Community
A few excerpts from the Chronicle's report:
An unlicensed civil engineer and notorious San Francisco permit "expediter" [named Jimmy Jen] faces more than 200 felony charges for allegedly creating bogus documentation for about 100 construction projects in the city, prosecutors said Wednesday.
A former plan checker for the city of San Francisco, Jen was well known in construction circles for his ability to push permits through building inspectors and for his close friendship with the agency's former deputy director, Jim Hutchinson, who left the post in 2005.
Jen [use a forged surveyor's stamp on] maps of 26 properties from 1990-95, prosecutors said. Then, from 2000-07, he used Wu's engineering stamp on 60 residential projects.
Jen is also being accused of claiming that licensed engineer Tai-Ming Chen had done work on 10 projects, notably the pending proposed renovation and other work on the landmark 1923 Alexandria movie theater.
So far, "no project mentioned by prosecutors has been found to be problematic" according to Department of Building Inspection spokesman Bill Strawn. Expect those who employed the "expediter" to feign ignorance of any possible wrongdoings.
∙ Permit 'expediter' Jen jailed on fraud charges [SFGate]
∙ Alexandria Theater Plans A Few Weeks From First Public Screening [SocketSite]
Posted by socketadmin at 9:00 AM | Permalink | Comments (56) | (email story)
July 23, 2010
The Incredible Shrinking Mission Bay (And Expanding South Beach)
As plugged-in people match the summary prose with the actual new map above, the absorption of most of Mission Bay’s ground zero into South Beach, with a carve out for the below market rate (BMR) Crescent Cove development, becomes more acute. As the Realtor defined BYB (before "Yerba Buena") district boundaries are currently defined below.
Feel free to add to the citywide new boundary observations. To make things even easier, direct links to San Francisco’s current street by street district map and the soon to be new.
∙ San Francisco’s New Neighborhoods And Boundaries Come August 10 [SocketSite]
∙ San Francisco Association Of Realtors New Neighborhood Map [SocketSite]
∙ An Overview Of Mission Bay [SocketSite]
∙ Mission Bay Gets A Little More Growns Up Each And Every Day [SocketSite]
∙ SocketSite Reader’s Report: Living In North Mission Bay (For Real) [SocketSite]
Posted by socketadmin at 6:30 PM | Permalink | Comments (7) | (email story)
July 21, 2010
Pacific Union Acquires South Beach Real Estate
As the share of San Francisco sales South of Market picks up, and buyers who traditionally would have only looked north of Market migrate south, so does Pacific Union with the acquisition of South Beach Real Estate and South Beach 4 Rent.
Posted by socketadmin at 3:15 PM | Permalink | Comments (2) | (email story)
June 25, 2010
Rest In Peace Walter Shorenstein
"Walter Shorenstein, San Francisco's pre-eminent real estate developer whose financial largesse made him a power broker in Democratic national politics for decades, has died."
∙ Street-smart developer shaped S.F. skyline [SFGate]
Posted by socketadmin at 6:45 AM | Permalink | Comments (1) | (email story)
April 19, 2010
Tamalpais Bank Falls (Thanks To The Lembis?)
On Friday the California Department of Financial Institutions shut down Tamalpais Bank and named the Federal Deposit Insurance Corporation (FDIC) as Receiver. As a plugged-in tipster notes (and correctly predicted): "Collateral damage from the Lembi implosion."
And apparently Union Bank has acquired the banks assets.
∙ Flipping A Few Lembi Properties Through Foreclosure [SocketSite]
∙ The Story (And Faces) Behind The Rise And Fall Of The Lembis [SocketSite]
∙ Mitsubishi UFJ Financial's Union Bank Buys Failed US Lender [Wall Street Journal]
Posted by socketadmin at 6:15 AM | Permalink | Comments (3) | (email story)
February 10, 2010
Just Cause Eviction Rights Extension II: Now Just For Foreclosures
The Board of Supervisors postponed a vote on Supervisor Avalos’ amended "just cause" eviction protection legislation yesterday as the Mayoral veto of the original supervisor approved legislation survived.
The amended legislation now intends to extend just cause eviction rights only to non-rent controlled residential rental buildings which have been foreclosed upon, because then nobody gets penalized except the big bad banks.
And hey, what are they going to do, raise their rates to offset the added risk?
∙ Amended Just Cause Eviction Protection Amendment [sfbos.org]
∙ Just Cause Or Rather Not: Mayor Newsom Vetoes Legislation [SocketSite]
∙ Just Cause Eviction Extension Approved, But With Four Key No Votes [SocketSite]
Posted by socketadmin at 8:15 AM | Permalink | Comments (33) | (email story)
January 25, 2010
Just Cause Or Rather Not: Mayor Newsom Vetoes Legislation
As expected, Mayor Newsom has vetoed Supervisor Avalos’ legislation extending "just cause" eviction rights to non-rent controlled units which was approved by the Board of Supervisors by a 7-4 vote in December and affirmed 7-3 in January.
Eight votes would be required to override the veto.
∙ Just Cause Eviction Extension Approved, But With Four Key No Votes [SocketSite]
∙ Carrot, Stick, And Cell Legislation In The Works For San Francisco [SocketSite]
Posted by socketadmin at 10:00 AM | Permalink | Comments (13) | (email story)
January 21, 2010
A Sensational Modernistic Neo-Classical Six Days On The Market
Listed for $9,250,000 in June 2007 but then withdrawn that November. Listed In May 2008 but then withdrawn that November. Listed for $7,980,000 in February 2009 but then withdrawn three weeks ago.
Listed for $7,980,000 once again a week ago, it’s now six official days on the market (and all MLS based stats and market reports) for 1089 Chestnut in 2010. The "sensational modernistic Neo-Classical" reference lives on.
∙ Listing: 1089 Chestnut (7/7) - $7,980,000 [MLS]
∙ Sometimes It’s Simply The Description (1089 Chestnut) [SocketSite]
Posted by socketadmin at 9:00 AM | Permalink | Comments (28) | (email story)
January 19, 2010
FHA Waives Prohibition To Aid Quick Foreclosure Flips
Starting February first, the current prohibition on providing FHA backed loans for properties that have been owned by the seller for less than 90 days will be waived for a year.
To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
∙ All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
∙ In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
∙ The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
The full language of the Waiver of Requirements is available online.
∙ HUD Takes Action to Speed Resale of Foreclosed Properties to New Owners [HUD]
Posted by socketadmin at 8:30 AM | Permalink | Comments (6) | (email story)
January 15, 2010
Development Carrots Have Developers Atwitter (But Still Not Funded)
The Mayor’s proposed carrots in the form of deferred impact and reduced affordable housing fees has caught the attention of the developer community as Tishman Speyer estimates the cuts could shave two years off the start date for 201 Folsom (for which they currently have three years to start).
Also noted, Bosa Development is "scrambling to obtain financing for a July construction start for the next 170 units of [Radiance Phase II]." And there’s the rub. Regardless of developer optimism, it all comes down to the financial markets opening back up (which are being driven more by fundamentals than exuberance these days).
∙ Carrot, Stick, And Cell Legislation In The Works For San Francisco [SocketSite]
∙ Fee break targets housing [San Francisco Business Times]
∙ 201 Folsom: Three More Years To Contemplate And Start Construction [SocketSite]
∙ Radiance At Mission Bay Phase II Update: Officially "Suspended" [SocketSite]
Posted by socketadmin at 9:00 AM | Permalink | Comments (23) | (email story)
December 18, 2009
More Along The Lines Of A Figurative San Francisco "Tsunami"
"[Moody’s Investors Service] now expects losses of 3.8 percent on loans underlying 2005 prime-jumbo bonds, with estimates of 8 percent for 2006 securitizations, 10.9 percent for 2007 debt and 12.3 percent for 2008 securities."
"Since March, serious delinquencies among the pools, as a percentage of original balances, have risen to 3.2 percent from 2.1 percent for 2005 bonds, 6 percent from 3.8 percent for 2006 securities, 7.6 percent from 4.8 percent for 2007 debt, and 7.8 percent from 4.6 percent for the 2008 group, Moody’s said."
∙ Moody’s Reviews $143 Billion of Jumbo-Mortgage Bonds [Bloomberg]
Posted by socketadmin at 2:30 PM | Permalink | Comments (3) | (email story)
December 10, 2009
An End To Confidential MLS Sales* (*Unless You're Willing To Pay)
A plugged-in reader reports (and we hadn’t):
Just an FYI (and you may have already covered this), the [San Francisco Association of Realtors] is scheduled to prohibit confidential sale prices in the MLS starting January 1st, 2010 - or face a $1000 fine. For our clients in this range, if they absolutely demand the confidentiality, we will likely just take the $1K hit.
However, I think in the majority of cases, it's not the necessarily the clients really pushing for confidentiality, but the agent. Particularly here on the North Side, there's a tremendous amount of self important bullshit, where agents will utilize any tool possible to make their client base seem "exclusive". So in those cases, I [think] most agents would rather simply post the actual price, forget the whole idea of being exclusive, and save themselves the $1000.
No word on any new fines for simply withdrawing a listing from the MLS prior to close to avoid disclosing a sale price, a favorite trick of the new development crowd (and others).
UPDATE: Another plugged-in reader adds:
My husband and I just closed on a 2-unit. We got it for a very good price since we had no financial contingencies and offered a quick close. In fact, we wanted the price published to serve as a lower comp.
The sellers and selling agent, however, asked that it be kept confidential. They claim they're worried about the reaction from other buyers whose offers were higher and rejected in favor or our lower, quick-to-close offer.
Well done and thanks for plugging in. Now about those housewarming invitations...
∙ And After 47 Months 62 Days On The Market... [SocketSite]
∙ 3577 Pacific Recap: Withdrawn From MLS (But Sold Two Days Prior) [SocketSite]
Posted by socketadmin at 3:00 PM | Permalink | Comments (35) | (email story)
Rewarding Forgiving Their Riskiest Borrowers
"Wells Fargo has forgiven an average of $46,000 in principal, or 15 percent, for the 43,500 option-ARM loans it has modified this year through September, said Franklin Codel, chief financial officer at the bank’s home-lending unit. The San Francisco-based lender has cut as much as 30 percent off the loan principal in a few “rare exceptions,” with the ceiling typically capped at 20 percent, Codel said."
∙ Wells Fargo Cuts as Much as 30 Percent in Principal From Loans [Bloomberg]
∙ It's The Principal Of The Underwater Mortgage Matter [SocketSite]
Posted by socketadmin at 9:15 AM | Permalink | Comments (84) | (email story)
December 8, 2009
From Thirty To Fifty And Fifty To Thirty For FHA Condo Loans In 2010
While nearly unheard of just a few years ago, FHA backed loans in the Bay Area have become more common (along with associated defaults).
A couple of condo related FHA rule changes that went into effect yesterday: up to 50 percent of a building’s units can now be purchased with FHA-backed loans, the rule returns to 30 percent at the end of the year; and at least 30 percent of units in a new development need to be pre-sold before it will become eligible for FHA-backed loans, the rule returns to 50 percent at the end of the year.
Also, buildings in which more than 10 percent of units are owned by a single investor or 15 percent of units are more than a month behind on their HOA’s will not qualify.
∙ US (But Not DA) Prime And FHA Mortgage Defaults Climbing [SocketSite]
Posted by socketadmin at 1:30 PM | Permalink | Comments (15) | (email story)
December 7, 2009
Just BeCause Eviction Vote Scheduled For Tomorrow
Assuming a recomendation by San Francisco’s Land Use and Economic Development Committee this afternoon, tomorrow the Board of Supervisors will vote on Supervisor Avalos’ proposed legislation to extend "just cause" eviction rights to all rental units rather than just those (for the most part) built before June 1979 and restricted by rent control.
Despite some disinformation making the rounds, the amendments would not effectively render post-'79 rental units in San Francisco "rent controlled."
And as best we can tell, committee amendments to the proposed legislation address the hot buttons of owner move-in evictions and the ability of developers to remove renters from units that were only intended to be rented for a limited time before being sold:
...by amending Section 37.9 to provide that limitations on [the number of] owner move-in evictions do not apply to these newly protected units; [and] by amending Section 37.9 to add a 16th just cause for eviction, to provide for eviction from a condominium unit with separable title that was rented by the developer for a limited time period prior to sale of the unit, where the developer has given specified advance notice to the renters...
UPDATE: With respect to that 16th just cause and units which were rented prior to the effective date of the new legislation, developers would have 90 days to provide retroactive "advance notice" of their intent to eventually sell.
UPDATE (12/8): From the San Francisco Examiner:
On Monday, the Land Use & Economic Development Committee voted to send the legislation to the full board for a vote Tuesday.
"If what came out of committee today reaches the mayor's desk, he will veto it," said Joe Arellano, Newsom’s spokesman.
The Mayor will need four supervisor votes to sustain any veto.
∙ San Francisco Land Use and Economic Development Committee Agenda 12/7/09 [SFBOS]
∙ Just Cause Protection Coming For Non-Rent Controlled Rentals? [SocketSite]
∙ Rent Control In San Francisco: The Real Rules [SocketSite]
∙ Just Cause Eviction Protection For Residential Tenants Proposed Legislation [SFBOS]
∙ Newsom: I will veto tenant eviction legislation [San Francisco Examiner]
Posted by socketadmin at 11:30 AM | Permalink | Comments (15) | (email story)
December 4, 2009
The Story (And Faces) Behind The Rise And Fall Of The Lembis
San Francisco Magazine digs deep to tell the story of the Lembis.
Their business plan was simple: Exploit the difference between artificially low, rent-controlled rents and the sky’s-the-limit, market-rate rents they could charge when the old tenants were out and new ones took their place.
This has been the motive behind many a buyout and eviction, legal or illegal, in San Francisco and in every other city with rent control.
For the Lembis, however, it was also a strategy that made their holdings more attractive to all that practically free short-term money—hundreds of millions of dollars—flowing in from around the globe.
The full story. And our quick three link chronology.
∙ War of values [San Francisco Magazine]
∙ Cash Flows Catch Up To The Lembi Group [SocketSite]
∙ The Chronicle Reports "Dozens," A Plugged-In Source Says Over 100 [SocketSite]
∙ CitiApartments Is No More! Well, Sort Of… [SocketSite]
Posted by socketadmin at 1:00 PM | Permalink | Comments (70) | (email story)
December 3, 2009
It's The Principal Of The Underwater Mortgage Matter
"We’re looking now at whether we should provide some further loss sharing for principal write downs," [FDIC Chairman Sheila] Bair said. "Now you’re in a situation where even the good mortgages are going bad because people are losing their jobs. So you have other factors now driving mortgage distress."
∙ FDIC’s Bair Weighs Mortgage Principal Cuts to Fight Foreclosure [Bloomberg]
Posted by socketadmin at 1:45 PM | Permalink | Comments (15) | (email story)
November 30, 2009
1844 Market Street Development Hits A Banking Speed Bump
It was a plugged-in tipster that first noticed the movement on 1844 Market Street back in May. And while the builder had indeed broken ground on the 113 unit mixed-use project with 90 parking spaces and 5,000 square feet of retail, the FDIC’s seizure and sale of United Commercial Bank to EastWest Bank might throw a monkey wrench into the mix.
Builder Joe Cassidy…said the development’s financing is up in the air since United Commercial Bank was taken over. The Market Street project is the largest condo development to break ground in 2009, and Cassidy said United Commercial Bank was "the only game in town" when he went shopping for a loan. Cassidy said he doesn’t know if the loan will be funded by EastWest.
As the site looks today:
∙ 1844 Market Watch: Movement On 113 "Fabulous" Units And Retail [SocketSite]
∙ Fallout from bank failures hits Bay Area builders [Business Times]
Posted by socketadmin at 8:45 AM | Permalink | Comments (7) | (email story)
November 16, 2009
Affordable Housing Requirements For Rental Development Challenged
A developer’s recent legal challenge of the affordable housing requirements imposed by the City of Los Angeles in order to gain approval for a new market rate residential rental development "raises the question about whether the affordability requirements for new market rate rental developments in San Francisco and other jurisdictions are valid."
From the most recent Gladstone & Associates newsletter by way of a plugged-in tipster:
A California Court of Appeal recently upheld a challenge brought by a developer to the affordable housing requirements of the City of Los Angeles. (Palmer/Sixth Street Properties v. City of Los Angeles, 175 Cal.App. 4th 1396). The developer sought approval for a 350-unit residential development. The City approved the project on the condition that the developer comply with the affordable housing requirements in the Los Angeles Central City West Specific Plan. The Specific Plan required applicants for multiple-family residential or mixed use projects to either set aside at least 15% of the dwelling units for low income families or pay in lieu fees.
The developer sued the City on the basis that the affordable housing requirements in the Specific Plan violate the Costa-Hawkins Rental Housing Act (Civil Code Section 1954.50 et. seq.). The Costa-Hawkins Act provides that residential landlords have the right to determine rents for new or vacated units. Established in 1995, the Act is known as having created “vacancy decontrol".
The Court ruled the affordability requirements as applied to rental housing are invalid because they conflict with and are preempted by the Costa-Hawkins Act. The Court concluded that the Los Angeles law did not allow the developer to set the rent at the outset of the tenancy and thus conflicted with the Act...
The Court rejected the City’s argument that the in-lieu fee alternative does not violate the Act and thus is still applicable. The Court stated the in-lieu fee alternative is “inextricably intertwined” with the affordability requirement for the rent and thus also is invalid.
However, the Court recognized that the Costa-Hawkins Act does not apply to projects that have received incentives such as density bonuses or government funding.
The Court’s decision raises the question about whether the affordability requirements for new market rate rental developments in San Francisco and other jurisdictions are valid. (The Court’s decision is limited to rental units and does not apply to for-sale units). It should also be noted the Court invalidated requirements that were established in a “specific plan,” which vary greatly from one jurisdiction to another. It can be expected that cities such as San Francisco will argue that their specific plans establishing affordability requirements are distinguishable from Los Angeles’ Specific Plan. However, we do not feel that a court would find them distinguishable. We believe the Los Angeles inclusionary requirements are very similar to those of San Francisco. San Francisco may take the position that since it has done a “nexus study” to support its affordable housing requirement, it should not be affected by the Palmer decision. However, we do not feel this is an important distinguishable fact.
It seems that unless the State amends the Costa-Hawkins Act, developers of new rental housing should consider starting to revise their pro formas to create a rental development without an affordable component. This may make the difference between a project that pencils out and one that does not.
∙ Gladstone & Associates [gladstoneassociates.com]
Posted by socketadmin at 8:30 AM | Permalink | Comments (7) | (email story)
November 9, 2009
Speaking Of Million Dollar Foreclosures (And "Shadow Inventory")
Purchased for $1,212,000 with ten percent down and two variable rate loans in November of 2005, 773 Rhode Island returned to the market in March of 2007 seeking $1,395,000. It was taken back by the bank in September of 2008.
It's now fourteen months later and the Potrero Hill view property has finally made it back onto the MLS as official inventory asking $909,900 (25% under its 2005 sale).
∙ Listing: 773 Rhode Island (3/2) - $909,900 [MLS]
Posted by socketadmin at 9:00 AM | Permalink | Comments (25) | (email story)
November 5, 2009
Fannie Mae As The Largest Lender Landlord In All The Land?
Having taken back 57,000 properties through foreclosure in the first half of 2009, "bringing its total real-estate owned inventory to 63,000 properties valued at $6 billion," Fannie Mae is rolling out a "Deed for Lease Program" in the hopes of generating some cash from the non-performing assets and mitigating the near-term impact of so-called "shadow inventory" on the market.
The Deed for Lease Program, which Fannie plans to roll out on Thursday, will offer borrowers who fail to complete or don't qualify for a loan modification or other workout to deed their property to the lender in exchange for a lease. Borrowers-turned-tenants will be able to sign leases of up to 12 months and will pay market rents, which in most cases are lower than the cost of mortgage payments.
Borrowers who haven't missed any mortgage payments aren't eligible for the program, and the borrower's mortgage servicer would have to show that a borrower isn't eligible for a loan modification before the homeowner could apply for the Deed for Lease program.
Of course collecting rents from those who have already lost their homes to foreclosure might be a challenge. And while the tipster that first pointed out the story notes, "Good news for RE investors like me, that's fo' shore!", we’d argue it's the opposite.
∙ Fannie Mae to Rent Foreclosed Homes Back to Borrowers [WSJ]
Posted by socketadmin at 8:15 AM | Permalink | Comments (24) | (email story)
November 3, 2009
Just Cause Protection Coming For Non-Rent Controlled Rentals?
A vote on a Supervisor Avalos’ legislation that would extend "just cause" eviction rights to all rental units rather than just those (for the most part) built before June 1979 and restricted by rent control was postponed by "at least a week" by the Board of Supervisors Land Use and Economic Development Committee.
The committee continued the legislation, noting more time was needed to add more information about the need for the proposal and for the consideration of possible amendments.
∙ Topic No. 201: Overview of Just Cause Evictions [SFGov]
∙ Rent Control In San Francisco: The Real Rules [SocketSite]
∙ Eviction protection proposal postponed [San Francisco Examiner]
Posted by socketadmin at 7:00 AM | Permalink | Comments (26) | (email story)
October 30, 2009
First Refreshed, Now Reduced For One Rincon Hill #806
Speaking of refreshed listings, withdrawn from the MLS in July after almost 120 days on the market at $945,000, the resale listing for One Rincon Hill (425 1st Street) #806 returned to the MLS two weeks ago asking $908,000.
Yesterday the list price was reduced to $899,000 for an official "15 days on the market" and a "$9,000" reduction from its "original" list. The resale of One Rincon Hill #1306 closed escrow in June with a reported contract price of $930,000 (tax records suggest an initial purchase from the developer at just over $975,000 in 2006).
If the sale of 425 1st Street #806 closed escrow tomorrow at its reduced ask, all MLS based aggregate statistics and market reports published by the San Francisco Association of Realtors, or Redfin, or Altos Research, or the likes of The RE Report would reflect a total of "16 days on the market" and a sale at "100% of list price" for this data point.
∙ Listing: 425 1st Street #806 (2/2) - $899,000 [MLS]
∙ An 06 Comp (In More Ways Than One) At One Rincon Hill [SocketSite]
∙ Quantifying The Impact Of Not Allowing Realtors To Reset DOM [SocketSite]
Posted by socketadmin at 9:45 AM | Permalink | Comments (72) | (email story)
October 29, 2009
Lembi's Fear And Loathing In Las Vegas
"According to the Clark County, Nev., district attorney's office, there is a warrant out for Walter Lembi, managing director of the financially troubled Lembi Group, for allegedly passing $298,500 worth of bad checks earlier this year at Caesar's Palace in Las Vegas."
UPDATE: "Under [a] deal, Lembi has agreed to pay the full amount, plus fees, for a total of $328,450, in a payment plan beginning Friday..."
∙ Real estate leader's name on bad-check warrant [SFGate]
∙ Lembi's markers met [SFGate]
∙ The Chronicle Reports "Dozens," A Plugged-In Source Says Over 100 [SocketSite]
Posted by socketadmin at 8:10 AM | Permalink | Comments (11) | (email story)
October 28, 2009
Quantifying The Impact Of Not Allowing Realtors To Reset DOM
It’s not a San Francisco based study, and we haven’t had a chance to review the research, but a plugged-in tipster directs us to a report on the impact of eliminating the ability to reset "days on the market" for a property’s listing.
In April 2006, the real estate listing service in Massachusetts adopted a new policy that prohibits home sellers from resetting their property’s “days on market” to zero through relisting. We study the effect of this new policy on single-family home sales along the Massachusetts-Rhode Island border, using homes in Rhode Island, which did not change its policy, as the control group.
We find that the policy change leads to a relative sale price reduction of around $11,000 for affected homes in Massachusetts. Homes caught in the middle of the policy change are the hardest hit; the sudden release of the cumulative days on market information lowers the average sale price by $21,500. Sellers respond to the new policy by reducing the listing price to shorten their property’s days on market.
A percentage rather than absolute impact might have be more meaningful. And while the San Francisco Association of Realtors does not prohibit the relisting practice, it is supposed to enforce a one month waiting period between relistings (unless the broker has changed).
As we originally wrote in 2006 when the National Association of Realtors responded to an inquiry into the practice:
We begrudgingly accept the practice, but to justify it by taking the position that "MLSs [and by extension their listings] are not considered advertising vehicles?" Sorry folks, but that’s an utterly asinine argument. And it’s disappointing to say the least.
At the risk of pointing out the obvious, consider any marketing materials, websites, or press releases that reference an MLS derived statistic such as average days on the market (DOM), or selling price to list price ratio (SP/LP). If any of the underlying data has been "refreshed," do these statistics really "present a true picture" and representation of the market?
Now back to 2011 Golden Gate Avenue and its official 370 37 days on the market and $595,000 under $1,000 over asking sale.
∙ Days on Market and Home Sales (pdf) [netinst.org]
∙ Sorry NAR, But No [SocketSite]
∙ From Flippy To Floppy And A Cliché For 2011 Golden Gate Avenue [SocketSite]
Posted by socketadmin at 4:00 PM | Permalink | Comments (47) | (email story)
October 27, 2009
Overlooking Architecture (And Upgrades) At The Montgomery (#502)
According to our plugged-in inside source, The Montgomery (74 New Montgomery) #502 offers great light and is surprisingly quiet ("thick walls and double-pane windows really keep the noise out").
Also noted, "the owners put a lot of money into it - subzero fridge (not a builder option) and custom cabinetry in living room, master bedroom and 2nd bedroom" so it’s not an apples to apples to comparison.
That being said, purchased for a recorded $1,242,500 in June 2008, asking $945,000 today (24% under its un-upgraded value in 2008). It's been on the market for 188 days with an original list price of $1,050,000.
Regardless, we're digging the old school city vistas and architecture.
∙ Listing: 74 New Montgomery #502 (2/2) 1,010 sqft - $945,000 [MLS]
∙ 74 New Montgomery: Soon To Be Sold Out Assuming Contracts Close [SocketSite]
Posted by socketadmin at 12:30 PM | Permalink | Comments (66) | (email story)
October 22, 2009
CitiApartments Is No More! Well, Sort Of…
A plugged-in tipster reports:
Just finishing up escrow on our first condo purchase and trying to get out of…CitiApartments. This morning called them and a receptionist answered “First Apartments how can I assist you?”
First Apartments? I asked her, is this still CitiApartments? She said, “We have changed our name”
Their website is gone too. Also, due to the PGE bills not being paid in our building, they have shut off all common area electricity.
There's nothing like a little rebranding to make all your problems go away.
∙ JustQuotes: Citi Draws Deposit Ire (And Lawsuits) [SocketSite]
Posted by socketadmin at 12:00 PM | Permalink | Comments (6) | (email story)
October 13, 2009
The Seven Samurai Deadly Sins New Mortgage Laws
Governor Schwarzenegger has approved seven new mortgage related laws. As a plugged-in reader summarizes:
The gist: Negative-amortization loans are banned...residential loan originators must now be licensed...it is now a felony to commit fraud on a mortgage loan application...appraisal management firms must register with the State.
Keep in mind that claiming a condo as "primary residence" in order to secure a better mortgage rate but then actually renting it out as an investment property constitutes fraud.
∙ Schwarzenegger signs seven mortgage laws [LA Times]
Posted by socketadmin at 9:00 AM | Permalink | Comments (31) | (email story)
October 7, 2009
RandomRumors: All About San Francisco…Except Soma?
As a tipster notes, "[w]ord is Zephyr is closing their Soma branch" which is at least partially true. According to our sources Zephyr's Soma lease is up at the end of the year, but they’re looking for another space. How actively and whether or not they find one...only time (or perhaps an inside tipster) will tell.
Posted by socketadmin at 3:00 PM | Permalink | Comments (3) | (email story)
August 18, 2009
Scoop: Examiner’s Move To Corner Weekend Open House Readership
You probably won’t read about it in the Chronicle, but the scoop according to a plugged-in source is that the San Francisco Examiner is a week away from announcing the free publication of weekend open house ads through a deal with the San Francisco Association of Realtor’s new sfopenhomes.com site.
Look for a test run and official announcement next week (or perhaps now a bit earlier). And expect a quick response from the Chronicle which counts on its weekend real estate section and related advertising for a significant share of its revenue.
Posted by socketadmin at 2:30 PM | Permalink | Comments (33) | (email story)
August 12, 2009
50 UN Plaza: The British Aren’t Coming! The British Aren’t Coming!
The U.S. General Services Administration (GSA) has backpedaled on their original decision to award a $121 million stimulus-funded contract to renovate San Francisco’s 50 United Nations Plaza to British firm Foster + Partners.
Instead, the San Francisco office of HKS Architects will be overseeing the project and doling out the dollars.
Photovoltaic panels, an ultra-efficient mechanical system, energy efficiency initiatives and environmentally friendly materials are planned to be installed in an effort to achieve LEED Gold certification for the finished building from the U.S. Green Building Council.
As we originally wrote, hell hath no fury as architects scorned.
∙ 50 UN Plaza Update: Hell Hath No Fury As Architects Scorned [SocketSite]
∙ UN Plaza Building design work to begin [Examiner]
Posted by socketadmin at 4:30 PM | Permalink | Comments (24) | (email story)
August 6, 2009
There's Nothing Like A Good Fannie
"The Obama administration is considering an overhaul of Fannie Mae and Freddie Mac that would strip the mortgage finance giants of hundreds of billions of dollars in troubled loans and create a new structure to support the home-loan market, government officials said."
∙ White House mulls major Fannie-Freddie shakeup [SFGate]
Posted by socketadmin at 7:00 AM | Permalink | Comments (8) | (email story)
August 4, 2009
9% Of HAMP Eligible Delinquent Loans Modified, 91% To Go
Out of an estimated 2,705,302 sixty plus day delinquent loans currently eligible for modification under the government’s Home Affordable Modification Program (HAMP), offers for 406,542 trial modifications have been extended (15%) and 235,247 modifications have been started (9%) over the past five months.
∙ Making Home Affordable Program Report: August 4, 2009 [treas.gov]
Posted by socketadmin at 8:00 AM | Permalink | Comments (13) | (email story)
July 31, 2009
JustQuotes: Citi Draws Deposit Ire (And Lawsuits)
"Rental security deposits held by [CitiApartments and associated companies] were funneled into an array of bank accounts and plundered, potentially affecting thousands of tenants, according to lawsuits."
∙ Lawsuit alleges CitiApartments drained tenant deposit accounts [Examiner]
Posted by socketadmin at 7:00 AM | Permalink | Comments (16) | (email story)
July 21, 2009
In The Words Of A Plugged-In Reader: It’s About Time
"The U.S. title-insurance industry faces increasing pressure from regulators to justify the fees charged to consumers for ensuring they have clear ownership of their homes."
∙ Title-Insurer Fees Draw Scrutiny [Wall Street Journal Online]
Posted by socketadmin at 8:30 AM | Permalink | Comments (22) | (email story)
July 20, 2009
Pacific Union Sold To Morgan Lane Marin Principals
From a plugged-in tipster, Pacific Union Real Estate is being acquired by the principals of Morgan Lane Marin. The sale is expected to close in August and the Pacific Union brand will remain, but Mark McLaughlin of Morgan Lane will replace Avram Goldman as CEO.
With respect to the "Are any offices going to close?" question: "We are currently evaluating all options."
Posted by socketadmin at 11:30 AM | Permalink | Comments (10) | (email story)
July 17, 2009
Best-Case Scenario For 55 Laguna: A Ground Breaking Mid-2011
According to the San Francisco Business Times, A.F. Evans is in talks with Related California to partner on the on the development 55 Laguna.
Related California President William Witte said they are looking at the numbers and would make a decision in the early fall. He said they are drawn to the San Francisco property’s access to public transit, its views, and the fact that the property is large enough to develop a distinctive housing enclave. At the same time, he said “it’s a tough financing market” and under the best-case scenario the housing development would probably not break ground until mid-2011.
∙ Related California, A.F. Evans in talks [San Francisco Business Times]
∙ Local Housing Developer AF Evans Files For Bankruptcy Protection [SocketSite]
∙ Openhouse Perspective On AF Evans And 55 Laguna: Minimal Impact? [SocketSite]
Posted by socketadmin at 11:45 AM | Permalink | Comments (6) | (email story)
July 14, 2009
When Arms Length Appraisals Are "Too Far" Away
"Major real estate groups are pushing for a moratorium on new appraisal standards that they say are scuttling sales, hampering refinancings and depressing prices at a time when the sector desperately needs a boost."
∙ Bill would suspend new home appraisal standards [SFGate]
∙ Loan Officers Forced To Play The Field Rather Than Pick Their Horse [SocketSite]
∙ Fannie And Freddie Forced Aim To Help Fix Appraisal Fraud [SocketSite]
Posted by socketadmin at 7:45 AM | Permalink | Comments (42) | (email story)
July 10, 2009
Note to Short Sellers (And Their Agents): Read The Fine Print
From the San Francisco Business Times:
The rising tide of “short sales” by troubled home owners facing foreclosure is prompting lenders to become more aggressive in their attempts to pursue former homeowners for their loan losses in a short sale. In a short sale, a house is sold, with a lender’s approval, for an amount that won’t pay off the mortgages on the property.
Often, the troubled home owner assumes the loss will be eaten by the lender. But Bank of America and Chase have quietly added language in their short-sale agreements that require the borrower to sign a promissory notefor the shortfall.
A spokesman for the American Bankers Association said this week that he wasn’t aware of the practice, suggesting how little attention has been paid so far to collection of these notes from troubled borrowers.
BofA says its intention is to protect investors holding the mortgages.
Damn those greedy lenders.
∙ Sellers owe balances after short sales [San Francisco Business Times]
Posted by socketadmin at 12:30 PM | Permalink | Comments (55) | (email story)
July 8, 2009
PMI’s Market Risk Index Report: 1st Quarter 2009
According to the latest PMI Market Risk Index, the San Francisco-San Mateo-Redwood City MSAD ended the first quarter of 2009 with a 66.2% likelihood of house price declines over the next two years, up from 31.6% in the fourth quarter of 2008, up from 30.2% in the fourth quarter of 2007, and up from 39.5% at the beginning of 2005.
The likelihood of decline for a few other nearby areas: Sacramento-Arden-Arcade-Roseville (99.9%), Oakland-Fremont-Hayward (96.4%), San Jose-Sunnyvale-Santa Clara (78.4%).
Keep in mind that the PMI Market Risk Index is tied to the OFHEO house price index which "excludes jumbo loans and the large portion of subprime and Alt-A loans that Fannie Mae and Freddie Mac don’t participate in."
· Economic and Real Estate Trends: 2nd Quarter 2009 [PMI Group]
∙ PMI’s Market Risk Index And Real Estate Trends Report: Spring 2008 [SocketSite]
∙ Economic And Real Estate Trends: Spring 2005 [SocketSite]
Posted by socketadmin at 10:00 AM | Permalink | Comments (26) | (email story)
July 2, 2009
San Francisco Developers Land $96 Million In Infill Grants
In the last round of California Proposition 1C infill infrastructure grants voters approved in 2006, "San Francisco developers won seven state grants worth $96 million" versus one grant for $5 million the last time around. From J.K. Dineen:
The biggest Bay Area recipient was the John Stewart Co., which received the maximum $30 million to help bankroll the ambitious 750-unit mixed-income housing development called Hunters View, a project that includes the rebuilding of a 267-unit dilapidated public housing complex. The money will pay for everything from grading to utilities to a new street grid. Work will start early next year on the $300 million development, which will be built in phases.
The Emerald Fund, which is raising money to build 308 units of rental housing in Rincon Hill, received $11 million, much of which will go toward a park the developer agreed to build. The developer did not receive another $11 million transit-oriented development Prop 1C grant it had applied for, but Emerald Fund President Oz Erickson said he is hopeful that money will come through after a 90 day evaluation period. Erickson said that they have a strong case for the public benefits 333 Harrison will provide.
The Martin Building Company also received a grant for the development of 179 units at 2235 Third Street while Avant Housing's bid for $5.7 million to kick-start development of 194 units at 1880 Mission Street was turned down.
∙ Urban housing firms grab $150M in grants [Business Times]
∙ JustQuotes: A New Vision For A Hunters Point Neighborhood [SocketSite]
∙ A Plugged-In Reader's 12 Notes On The "PC" Approved 333 Harrison [SocketSite]
∙ 2225-2255 Third Street: What Was (And Hopefully Is) In The Works [SocketSite]
Posted by socketadmin at 2:00 PM | Permalink | Comments (9) | (email story)
July 1, 2009
Park Terrace Developer (Opus West) To File For Bankruptcy
Opus East and West (which developed Park Terrace at 325 Berry in Mission Bay) will file for federal bankruptcy protection, with Opus East expected to go the chapter 7 route while Opus West is expected to reorganize under chapter 11.
Opus West has been active in the Bay Area, developing 75 acres of the 120-acre Sierra Point office campus in Brisbane in the late 1990s. In 2007, Opus West announced plans to build more office space in Brisbane — a 448,000-square-foot, $225 million office complex at 3000 Marina Blvd. — but the economy soured and the developer never went forward with the project.
Opus North and Northeast are expected to continue as-is. No word on how the Opus West filing will impact (if at all) any future Park Terrace claims.
∙ Opus East, West to file for bankruptcy [Business Times]
∙ Opus Center Sierra Point (Brisbane) [opuscentersierrapoint.com]
∙ New Developments: Park Terrace (325 Berry) [SocketSite]
Posted by socketadmin at 5:00 PM | Permalink | Comments (46) | (email story)
June 25, 2009
Delaying Development Fees In An Attempt To Un-Delay Development
From the San Francisco Examiner with respect to various development fees:
Because of the dismal [San Francisco] economy...city officials are drafting new legislation that could allow developer fees to be paid after construction finishes instead of before it starts, according to Michael Cohen, Mayor Gavin Newsom’s chief economic strategist.
No update on the fees of One Rincon Hill.
∙ City development fees may rise [San Francisco Examiner]
∙ Michael Kriozere (ORH) Responds: We're Planning To Pay, Damn It! [SocketSite]
Posted by socketadmin at 7:30 AM | Permalink | Comments (2) | (email story)
June 23, 2009
It Goes To Zero (The New Eleven)
It’s not yet San Francisco real estate news per se, but ZETA Communities is based in the city. From the Chronicle:
Zeta Communities, which is headquartered in South of Market and owns a manufacturing plant in San Leandro, is close to completing its first "zero energy" townhome in Oakland and is working with a developer on a proposed 30-unit studio apartment building in Berkeley.
The firm plans to build segments of housing units indoors and ship them to development sites for assembly.
Energy-saving features include extra-thick windows, dense insulation, efficient appliances and a monitoring system that manages temperature and ventilation and tracks electricity use. Warmth in the house is used to heat incoming air, and recovered hot wastewater helps warm shower and sink water. Solar panels generate new energy.
Zero, it's the new eleven.
∙ Startup's prefab homes aim for zero energy bills [SFGate]
∙ ZETA Communities [zetacommunities.com]
Posted by socketadmin at 8:00 AM | Permalink | Comments (11) | (email story)
June 12, 2009
From At Risk To Lost For Another 24 Lembi Properties
The 23 Lembi properties at risk of being lost in March have officially been deeded back to their lender (a CIM Group fund) along with one more.
∙ Lembis At Risk Of Losing Another 23 Apartment Buildings [SocketSite]
∙ CIM Group snaps up 24 Lembi buildings [San Francisco Business Times]
Posted by socketadmin at 10:00 AM | Permalink | Comments (11) | (email story)
June 8, 2009
A Few More Numbers For The Most Recent Lembi Twelve
Some additional numbers on the twelve properties the Lembis put on the market in May:
Lembi hopes to generate $43 million in revenue from the disposition, which equates to approximately $185,000 per unit, approximately 50% of replacement cost and a significant discount to what it paid to acquire the properties.
The buildings may sell as a group or individually. Most were constructed in the first quarter of the 21st century and a few were built in the 1960s. The per-unit prices range from $320,000 to $100,000. Most of the projected cap rates on the buildings are in the 5% range and are based on scheduled income and a 3% vacancy factor. Much of the interest so far has been local buyers each looking to purchase one or two properties, according to local sources.
The sales will be watched closely by the market because only one other comparable property has sold in San Francisco this year, according to Real Capital Analytics. The property was Empire, a 40-unit, four-story property built in 1907 at 1040 Leavenworth Street. The property sold for $5.8 million or $145,000 per unit; the pro forma cap rate was 4.7%. All of the Lembi properties are said to be of higher quality.
According to MPF Research, San Francisco rents dropped 5.2% in the first quarter of 2009.
∙ Lembi Group Puts 12 Apartment Assets up for Sale [CityFeet]
∙ Lembis Look To Cut Another Twelve Loose As Rental Market Drops [SocketSite]
Posted by socketadmin at 8:15 AM | Permalink | Comments (65) | (email story)
June 5, 2009
If You're Looking To Renovate Or Rewire In San Francisco...
"Unemployment in San Francisco’s building trades sector is over 20 percent, with about 50 percent of unionized electricians out of work, according to San Francisco Building and Construction Trades Council President Mike Theriault.
With 16,000 members, that means that more than 3,200 building trades workers are currently without a job. Unemployment among laborers and carpenters is running at more than 20 percent, while iron workers have the lowest jobless rate -- about 10 percent."
Unemployment is over 20% for S.F. building sector [San Francisco Business Times]
Posted by socketadmin at 3:30 PM | Permalink | Comments (18) | (email story)
May 29, 2009
A Rose By Any Other Name (But Not Necessarily A Neighborhood)
From the Chronicle with regard to San Francisco’s neighborhood naming:
Stepping into the fray, the San Francisco Association of Realtors is coming out with a new neighborhood map this summer - replacing stale names with hip ones, adding enclaves and changing boundaries to try to answer one of San Francisco's most complicated questions: So, where do you live?
No word on who granted the Realtors exclusive naming rights.
∙ Familiar S.F. neighborhoods gain new names [SFGate]
Posted by socketadmin at 6:00 AM | Permalink | Comments (64) | (email story)
May 15, 2009
The Montgomery Surpasses Itself (Now Offering 5% Commissions)
Last month the sales office at The Montgomery extended their "unsurpassed offer" of 4.5% broker commissions through May 31.
And while it’s not yet the thirty-first, the sales office is now offering buyer’s agents 5% commissions on "select homes placed in contract between 5/15/09 to 6/30/09." Also noted, "new May 2009 pricing on several floor plans, starting from the low $300,000s."
∙ 74 New Montgomery: Half Sold (And Still Buying Some Agent Love) [SocketSite]
Posted by socketadmin at 9:15 AM | Permalink | Comments (15) | (email story)
April 22, 2009
Loan Officers Forced To Play The Field Rather Than Pick Their Horse
A long awaited "appraisal overhaul" for agency backed mortgages goes into effect May first. Some color from Julian Hebron at RPM Mortgage:
As of May 1, the Federal Housing Finance Agency has mandated that loan officers can’t select or pay appraisers. The Home Value Code of Conduct (HVCC), as it’s called, is intended to remove conflicts of interest some feel are inherent in the loan officer/appraiser relationship.
In the coming months, industry-wide HVCC implementation means appraisals and perhaps escrow periods may take longer. Instead of the current practice of a loan officer ordering directly from appraiser, the basic HVCC model is that a bank has a stable of appraisers, a loan officer submits an appraisal order, and any appraiser in the stable will be randomly assigned to the order. Banks can choose their own appraisers and set standards for things like experience level and turn-times, but FHFA (using Fannie & Freddie) has to approve each bank’s entire appraisal process.
Banks will either have internal appraisal divisions or be contracted with appraisal management companies.
No word on how our local banks’ stables currently stack up.
∙ Fannie And Freddie Forced Aim To Help Fix Appraisal Fraud [SocketSite]
Posted by socketadmin at 11:15 AM | Permalink | Comments (26) | (email story)
April 6, 2009
Mortgage Rates Are Down But Are The "Bad Ways" Picking Back Up?
From a plugged-in reader refinancing a home up in Portland:
We just signed on our refinance (4.625% for 1 point) and we were talking to a woman who worked at the title company and she said things are going right back to the old (bad) ways. People taking mortgages that over extend them financially, brokers pushing through anything they can. She said it is going straight back to how things were before and she wasn't happy about it.
Is it an "only in Oregon" or anomalous report?
Posted by socketadmin at 10:45 AM | Permalink | Comments (18) | (email story)
March 27, 2009
Lembis At Risk Of Losing Another 23 Apartment Buildings
After deeding 51 buildings back to the bank in lieu of foreclosure in January, the Lembis are at risk of losing another 23 of their remaining 250-ish apartment buildings in San Francisco. From J.K. Dineen:
[A CIM Group] affiliate bought $121 million of distressed Lembi debt from Column Financial on Dec. 19 of last year. The affiliate alleges in a complaint filed in San Francisco Superior Court March 4 that the Lembi subsidiary Trophy Properties [which owns 23 properties] has been in default on payments since Feb. 10 on two loans, one for $116.1 million and one for $5.2 million. Interest accrued and outstanding from Jan. 9 to March 2 amounted to $1.8 million, and interest on the unpaid balance is accruing at a rate of $50,600 a day, according to court documents. That amounts to about $18.4 million a year — more than double the approximate $8 million the 23 properties generate in rents, according to rent roll information on the buildings included in court documents filed with the complaint.
The 23 properties at risk: 3475 16th Street, 3000 24th Street, 360 32nd Avenue, 427 34th Avenue, 9 August Alley, 2101 Bay, 1650 California, 650 Church, 1345 Clement, 43 Cole, 347 Eddy, 1745 Franklin, 345 Green, 305 Hyde, 1456 Jones, 2235 Laguna, 1516 Larkin, 2117 Market, 2135 Market, 230 Oak, 1070 Post, 840 Van Ness, 956 Valencia.
∙ CIM Group goes for Lembi buildings [Business Times]
∙ Cash Flows Catch Up To The Lembi Group [SocketSite]
Posted by socketadmin at 8:00 AM | Permalink | Comments (97) | (email story)
March 18, 2009
A Tighter Fannie...For Condo Mortgages
"[Fannie Mae] stopped guaranteeing mortgages in condo buildings where fewer than 70% of the units have been sold, up from 51%. In addition, the company won't back loans for sales in buildings where 15% of current owners are delinquent on association fees or where more than 10% of units are owned by a single-entity."
∙ Fannie Tightens Its Conditions for Backing Condo Mortgages [WSJ]
Posted by socketadmin at 3:00 PM | Permalink | Comments (28) | (email story)
March 5, 2009
Local Housing Developer AF Evans Files For Bankruptcy Protection
In what's likely not to be good news for the development of 55 Laguna (at the very least with regard to timing), Oakland based developer AF Evans has filed for Chapter 11 bankruptcy protection citing "plummeting house prices and the credit crunch."
∙ AF Evans Co. files Chapter 11 [San Francisco Business Times]
∙ 55 Laguna: The Plugged-In (And AF Evans) Development Update [SocketSite]
Posted by socketadmin at 4:20 PM | Permalink | Comments (11) | (email story)
November 12, 2008
The Market Might Not Like It, But We Do: Paulson Changes Rescue Plan
"U.S. Secretary Henry Paulson plans to use the second half of the $700 billion financial rescue program to help relieve pressures on consumer credit, scrapping an effort to buy devalued mortgage assets....Buying 'illiquid' mortgage-related assets -- the reason the Troubled Asset Relief Program was established a month ago -- is no longer being considered, he said."
∙ Paulson Shifts Focus of Rescue to Consumer Lending [Bloomberg]
∙ $700 Billion Bailout Bill Round Two: One Down, One To Go [SocketSite]
Posted by socketadmin at 9:15 AM | Permalink | Comments (12) | (email story)
November 11, 2008
Fannie, Freddie and Citigroup To Join The Payment Cutting Parade
"Mortgage companies Fannie Mae and Freddie Mac and Citigroup Inc. plan to cut home-loan payments for hundreds of thousands of borrowers facing foreclosures, following similar moves by the nation's biggest banks.
Fannie Mae and Freddie Mac will reduce principal or interest rates on some loans and extend the terms of others, people briefed on the matter said. The Federal Housing Finance Agency, which seized control of Fannie and Freddie in September, scheduled a press conference at 2 p.m. in Washington to announce the plan."
∙ Citi, Fannie, Freddie to Halt Some Foreclosures [Bloomberg]
∙ JustQuotes: Proposing To Change The Terms To Protect The Principal [SocketSite]
Posted by socketadmin at 8:30 AM | Permalink | Comments (62) | (email story)
November 6, 2008
It’s Official: McGuire Real Estate Acquires Urban Bay Properties
Yesterday's scoop via a plugged-in Charlie Moore (CEO of McGuire):
I wanted to personally give you the official word that McGuire and Urban Bay are merging. The companies have been in discussion for well over a year, and both felt there were strong benefits to joining forces: McGuire has strong traditions and is well-established in north of Market neighborhoods, while the Urban Bay brings more of a "hip" brand to the South of Market neighborhoods. What's more, McGuire has offices in Burlingame and Mill Valley, and Urban Bay has a presence in Oakland's Jack London Square.
And via an “Insider”:
For now UBP will retain current branding but will change color schemes to match the new McGuire coloring. Tom Brown becomes COO of McGuire. No news on closing of the McGuire Davis Street office or the UPB Bluxome street office.
Cheers. And as always, thank you for plugging in.
∙ RandomRumors: McGuire Real Estate/Urban Bay Properties In Talks [SocketSite]
Posted by socketadmin at 6:00 AM | Permalink | Comments (9) | (email story)
October 14, 2008
RandomRumors: McGuire Real Estate/Urban Bay Properties In Talks
The Rumor: McGuire Real Estate has purchased Urban Bay Properties.
The Reality: They are in talks but a deal has yet to be done (although it's currently looking more likely than not).
The Reason: A chance for the very well capitalized McGuire to add a bit of “youth” and South of Market presence to their brand.
Posted by socketadmin at 1:15 PM | Permalink | Comments (9) | (email story)
While Seasonality Is In Effect, That's Not What This Is About
As we wrote two weeks ago:
…based on our calculations, the number of new contracts written for listed [San Francisco] properties in the fourth week of September was down roughly 25% as compared to the year prior (which was down roughly 17% as compared to the year prior to that), and is running roughly 22% lower on a year-over-year basis with respect to the last two weeks of the month.
As we wrote yesterday morning:
…based on our calculations, and setting the stage for tomorrow’s “on topic” post, new contract volume last week dropped 45% from the week prior and was off by 31% on a year-over-year basis.
And as Redfin wrote yesterday afternoon (about the markets in which they play):
…the past few weeks have seen a major reversal. As the stock market wiped out prospective down-payments, tours and offers dropped 30%. Transactions that were done came undone. October will still be pretty good, then we’re headed for a big dip.
Keep in mind it's the same story in brokerages and sales offices throughout town – the transaction downturn not the layoffs (as far as we know) – they just haven't had any reason to let it be publicly known.
∙ SocketSite's San Francisco Listed Housing Inventory Update: 9/29/08 [SocketSite]
∙ SocketSite's San Francisco Listed Housing Update: 10/13/08 [SocketSite]
∙ Sequoia’s Take On The New New (And Quite Local) Economy [SocketSite]
∙ A Very Tough Day [Redfin]
Posted by socketadmin at 6:45 AM | Permalink | Comments (30) | (email story)
October 7, 2008
Bank Of America's Loan Abuse Settlement By The Numbers
The potential extent of Bank of America’s “loan abuse” settlement by the numbers for select Californians:
∙ $3.4 billion: reduced interest payments and principal
∙ $33.6 million: waiver of late fees
∙ $27.9 million: assistance for seriously delinquent/already foreclosed upon borrowers
∙ $25.6 million: waiver of prepayment penalties
∙ $25.2 million: payments to those who will eventually lose their homes to foreclosure
Those who are most likely to qualify now? Those who were least qualified (subprime) and engaged in the most risky behaviors (pay-option ARMs) then.
∙ BofA OKs foreclosure relief for Californians [SFGate]
Posted by socketadmin at 7:10 AM | Permalink | Comments (4) | (email story)
October 6, 2008
Did Somebody Say Alt-A? (Yes) And Crackup As In Like A Clown? (No)
"The Federal Housing Administration has grown so large that by the end of the year it will guarantee mortgages for three in 10 U.S. borrowers, many of whom have bad credit or loans that required no verification of income."
"FHA has completely replaced subprime and Alt-A," said [David] Olson, former director of market research at Freddie Mac, the second-biggest mortgage buyer, who now runs Wholesale Access Mortgage Research & Consulting Inc. in Columbia, Maryland. "I hope it's not setting them up for another crackup. There have been so many crackups."
∙ FHA Takes on Subprime, Alt-A Loans Shunned by Private Lenders [Bloomberg]
Posted by socketadmin at 7:50 AM | Permalink | Comments (2) | (email story)
September 30, 2008
What To Do When Incentives Don’t Work? (Lower Prices Perhaps?)
“The [homebuilder] industry will ask lawmakers to pass a $15,000 tax credit for all homebuyers, replacing a smaller incentive enacted earlier this year that they contend failed to stimulate demand.”
From the chief executive officer of the National Association of Home Builders:
“Our members are really hurting…The [$7,500] tax credit passed in July seems to have failed to have sparked interest. We are hearing from high volume and small volume builders that it has had no impact.”
And from the co-director of the Center for Economic and Policy Research in Washington:
“Let the house prices settle, then worry about stimulating the market…I have very little sympathy for these builders. If they weren't able to figure out what was going on during the bubble, don't go crying to the government.”
∙ `Hurting' Builders Seek New Tax Credit to Help Market [Bloomberg]
Posted by socketadmin at 5:45 AM | Permalink | Comments (5) | (email story)
September 15, 2008
Well, At Least Rates On Treasuries Are Falling…
It’s going to be a rough morning (and then some), so let’s just get this out of the way…Lehman is going bankrupt (think mortgages) while Merrill avoids a similar fate by getting acquired, the equities market is bracing for a wild ride (not in a good way), and option ARMs are rearing their ugly head over at Washington Mutual (and beyond).
As many as 45 percent of borrowers with payment-option adjustable-rate mortgages issued from 2004 to 2007 and bundled into securities may default, according to Fitch Ratings analysts Roelof Slump and Stefan Hilts. Washington Mutual held $52.9 billion of the mortgages, also called option ARMs or negative amortization loans, on its books in the second quarter, with defaults doubling to $3.2 billion from the end of 2007, according to a filing with the U.S. Securities and Exchange Commission.
Two other relevant option ARM factoids: “About 83 percent of the option ARMs issued from 2004 to 2007 were underwritten without full documentation of borrowers' incomes,” and “Washington Mutual issued half its option ARMs in California.”
No word on the exact Option ARM breakdown (so to speak) in the Bay Area.
∙ Lehman Files for Biggest Bankruptcy as Suitors Balk [Bloomberg]
∙ Bank of America to Acquire Merrill as Crisis Deepens [Bloomberg]
∙ U.S. Stock Futures Drop, Pointing to Steepest Slump Since 2002 [Bloomberg]
∙ Washington Mutual Hobbled By Increasing Defaults on Option ARMs [Bloomberg]
Posted by socketadmin at 6:30 AM | Permalink | Comments (62) | (email story)
September 8, 2008
It’s The End Of The GSE’s As You Know Them (Do You Feel Fine?)
The Federal government has officially seized control of Fannie Mae and Freddie Mac, and once again, no plugged-in person should have been caught by surprise. The question now, how will this move impact on the local market?
While near-term liquidity in the mortgage markets should increase as the implicit goes explicit, we expect to see a continued tightening of lending standards for conforming loans (which will continue to reduce the pool of potential buyers). Over the long-term (and beginning in 2010), both entities will be reducing their own investment portfolios (which could have the opposite effect on liquidity). And in terms of rates, we’ll wait and see.
One thing is for certain, that $25 billion Congressional Budget Office estimate for rescuing the two GSE's is now even more likely to be just the tip of the iceberg.
Posted by socketadmin at 7:30 AM | Permalink | Comments (33) | (email story)
August 4, 2008
Chase/U.S. Bank Crack Down On Jumbos, Sterling Bumps TIC Rates
Citing a “dramatic reduction in Jumbo volume levels,” “lack of Capital Markets appetite for Jumbo products,” and “worse than expected delinquency performance on these loans,” Chase is suspending “Non-Agency Fixed and ARM (Amortizing and Interest-Only) Product offerings within [their] Wholesale Lending Business.
At the same time, U.S. Bank is moving to a minimum of 20% down for interest only jumbo purchases and a “minimum of $250,000 of assets/reserves seasoned for a minimum of 60 days” for those refinancing an interest only jumbo loan with a loan to value of greater than 80%.
The TIC lending market just tightened this week. The low cost TIC lender in this market, Sterling, just raised all TIC rates by [50bps] this week and increased financial requirements for borrowers...[Editor’s Note: While our reader typed 500bps (5%), we’re assuming 50bps (0.5%) is what was meant.]
A few more buyers just got kicked out of the housing pool. Now about all those Econ101 and supply and demand lectures…
∙ Chase Suspends Non-Conforming Mortgages [SocketSite]
∙ Twelve New Tenancies In Common At Twenty-Two Hundred Beach [SocketSite]
Posted by socketadmin at 1:00 AM | Permalink | Comments (57) | (email story)
July 30, 2008
A Less Than Smooth Closing Of Their Own: Financial Title Shuts Down
According to a plugged-in tipster, Financial Title received a cease and desist order courtesy of the Insurance Commissioner a few hours ago. And while escrows were to be transferred to other title companies for closing, apparently some files have been confiscated which is making it difficult for some parties (like our tipster's client) to locate their funds.
UPDATE: Following in the footsteps of sister company Alliance Title, Financial Title which was the largest real-estate title agent in Silicon Valley and has four offices in San Francisco has officially closed its doors.
Sources who have spoken to Financial Title employees said the title company began closing its doors in Santa Clara County Tuesday night. Those sources said all employees have lost their jobs, and Financial's underwriter, First American Title Co., has been collecting open escrow files at the closed offices.
No update on the Insurance Commissioner angle, the "confiscation" (versus collecting) of files, or the irony of misplaced escrowed funds. Tipsters?
∙ Tag Line Irony From Alliance Title: “Closing The California Dream” [SocketSite]
∙ Financial Title company shuts down [Business Times]
Posted by socketadmin at 11:56 AM | Permalink | Comments (22) | (email story)
July 28, 2008
JustQuotes: Industry Layoffs – Low In Numbers, High In Significance
“From mixed-use developers like A.F. Evans to home-builders like Lennar to investment management firms like MacFarlane Partners, real estate firms active in the Bay Area have been cutting middle and upper management this year. It's not a lot of jobs -- the three companies together laid off less than 50 employees -- but for lean-and-mean developers and real estate services firms, it's significant. And in addition to scattered layoffs, companies like Cushman & Wakefield have implemented hiring freezes.”
∙ Dramatic hiring plunge a sign of industry's woes [Business Times]
Posted by socketadmin at 6:40 AM | Permalink | Comments (17) | (email story)
July 14, 2008
The Federal Government Breaks Out Their (Big Enough?) Buckets
First IndyMac, and now Fannie Mae and Freddie Mac, it’s been a mad week of bailing and pre-bailing backstopping for the Federal government. And what normally would have been an insignificant $3 billion auction of securities by Freddie Mac this morning, instead becomes an oversized test of confidence for the financial markets.
UPDATE: The debt market responds favorably to the Fed's implicit explicit backing. Goldman and Rogers (and ex SF-er), not so much.
∙ IndyMac Seized by U.S. Regulators Amid Cash Crunch [Bloomberg]
∙ Paulson Puts Treasury's Weight Behind Fannie, Freddie [Bloomberg]
∙ Alt-A Powerhouse IndyMac Takes A Step Closer To IndyDependance [SocketSite]
∙ When We Wrote Watch Your Fannie, We Really Weren’t Kidding [SocketSite]
∙ Freddie Mac Gets Higher-Than-Average Demand for Bills [Bloomberg]
∙ Fannie Plan a `Disaster' to Rogers; Goldman Says Sell [Bloomberg]
Posted by socketadmin at 3:00 AM | Permalink | Comments (47) | (email story)
July 8, 2008
Alt-A Powerhouse IndyMac Takes A Step Closer To IndyDependance
As another plugged-in reader noted yesterday, IndyMac – second only to Countrywide in terms of indypendent U.S. mortgage lenders last year – has effectively stopped originating new home loans citing a “continued downward trend in home prices” (think losses and need to raise additional capital) and a lack of “stability and uncertainty” in the mortgage markets (think inability to raise said capital).
Keep in mind that IndyMac is the largest “Alt-A” – not subprime – lender in the land.
∙ Indymac Issues Stakeholder Letter [The IMB Report]
∙ JustQuotes: You Had Better Watch Your Fannie (As Well As Freddie) [SocketSite]
Posted by socketadmin at 6:45 AM | Permalink | Comments (25) | (email story)
June 25, 2008
California Sues Countrywide (And Who Do You Think Might Pay?)
As Countrywide’s shareholder’s approved Bank of America’s takeover offer, California and Illinois filed suit against the mortgage lender for “luring borrowers into risky loans they couldn't afford.”
Countrywide and Chief Executive Officer Angelo Mozilo were named in the suits, filed today, claiming the lender's tactics led thousands of borrowers to lose their homes when they couldn't make their payments. Countrywide used deceptive practices, including low ``teaser'' rates, to entice borrowers into adjustable-rate loans without adequately informing them that the payments would balloon in later months, according to the suits.
The suit seeks “restitution for borrowers, civil penalties of as much as $2,500 per violation and a court order halting the practices.” Mortgage surcharge anyone?
UPDATE: From a plugged-in litigator: "I litigate cases under this statute all the time. It will be resolved with a promise to stop doing all these things and a payment to the state of several million dollars. The alleged "victims" (those who took out CW loans) won't get a dime and there will be no "mortgage surcharge." Basically, B of A shareholders will take an insignificant hit and that will be the end of it."
∙ Countrywide Sued by California, Illinois, Over Mortgage Loans [Bloomberg]
Posted by socketadmin at 1:00 PM | Permalink | Comments (15) | (email story)
June 24, 2008
JustQuotes: The Big (As In Jumbo) Difference Between Can And Are
"Three months after Fannie Mae and Freddie Mac won the freedom to step up home-loan purchases, the government-chartered mortgage-finance companies are doing what critics in the Federal Reserve and Congress had predicted.
Instead of using powers granted by Congress to buy jumbo loans for the first time, Freddie Mac and Fannie Mae are purchasing their own mortgage-backed securities, helping reduce losses, company filings show. The large loans, above $417,000, made up almost a third of the U.S. market last year, according to the Mortgage Bankers Association.
Since the rule change took effect in March, Fannie Mae has packaged $24 million of jumbo loans into securities, while Freddie Mac added $220 million, according to the Inside Mortgage Finance newsletter. In April, the companies spent more than $32.4 billion to buy their own instruments, regulatory filings show."
∙ Fannie, Freddie Fail to Relieve Housing by Shunning Jumbo Loans [Bloomberg]
∙ If Lowering Rates Isn’t Working, Perhaps Increasing Limits Will [SocketSite]
∙ If The Plugged-In Readers Are Right, Jumbo-Conformings Are Here [SocketSite]
Posted by socketadmin at 8:15 AM | Permalink | Comments (2) | (email story)
June 20, 2008
Operation Malicious Mortgage: Now In The Bay Area (But Yet To Act)
While "Operation Malicious Mortgage" has nabbed over 400 individuals over the past three months, none of the mortgage-fraud related arrests have occured in the Bay Area. Then again, it has only been a month since the U.S. attorney's office established their Bay Area mortgage fraud task force.
From Joseph Russoniello, the U.S. attorney for the Northern District of California: "We have dozens of matters under investigation" [ranging from individual instances of fraud to broader schemes involving brokers, appraisers and lenders].
∙ 2 former Bear Stearns execs indicted, arrested [SFGate]
Posted by socketadmin at 7:45 AM | Permalink | Comments (4) | (email story)
June 18, 2008
The SocketSite Scoop: Wells Fargo To Offer Fractional TIC Financing?
Despite what some might sell, TICs financed with fractional (or “individual”) loans are not substantively the same as condominiums. While fractional financing does mitigate a large portion of the commingled financial risk associated with a TIC purchase, it doesn’t address our larger concern of liquidity in terms of access to equity (no HELOCs here) or major lenders when it comes time to liquidate (not everyone wants – or will qualify – to borrow from a boutique bank).
That being said, and while we haven’t yet confirmed it, according to a trusted plugged-in tipster Wells Fargo is about to roll out fractional TIC financing.
Posted by socketadmin at 9:15 AM | Permalink | Comments (11) | (email story)
June 16, 2008
Homebuilder Confidence Falls: From The Fringes To San Francisco?
A plugged-in reader reports (and posits):
I was on a conference call today with the National Association of Home Builders (NAHB) CEO Jerry Howard and Chief Economist David Seiders where they were presenting the June Housing Market Index (HMI).
It was pretty bad. They were basically pleading with all news organizations and others to put pressure on the federal government to bail out the housing meltdown.
Jerry even went so far as to say that it is effecting senior citizens and it is just not right that they are losing their equity.
The NAHB reported that the index is at an all time record low of 18. Down from 19 in May. (a rating of 50 is neutral, greater than 50 means a majority of positive responses. less than 50 means a majority of negative)
David did say that he expects further declines since the current index does not reflect the recent rise in interest rates.
I really wish I could describe in words the sense of desperation that came from the call.
It seems easy to look at particular neighborhoods and say that a major downturn is not coming but I would have to agree with those whom have studied bubble and mass movement mentality. The drastic movement starts at the fringes and moves in over time.
Stockton -> Contra Costa -> Specific Districts in SF -> Top of Russian Hill
If we look back in 5 years I will be very surprised if those prime districts have not followed suit.
∙ Homebuilder Confidence Index Unexpectedly Fell to 18 [Bloomberg]
∙ SocketSite's San Francisco Listed Housing Inventory Update: 6/16/08 [SocketSite]
Posted by socketadmin at 1:45 PM | Permalink | Comments (34) | (email story)
June 12, 2008
Thornburg Reports “Modestly Increasing Delinquencies” And A Loss
Thornburg Mortgage reports “modestly increasing delinquencies” and a loss of $3.31 billion in the first quarter (“because of writedowns on securities linked to real estate”). It's interesting to note as Thornburg specializes in jumbo adjustable rate mortgages for those with great credit (and assets). You know, fellow San Franciscans.
∙ Thornburg Reports Loss of $3.31 Billion on Writedowns [Bloomberg]
∙ Premier Lender Thornburg Mortgage Headed Towards Bankruptcy? [SocketSite]
Posted by socketadmin at 6:30 AM | Permalink | Comments (0) | (email story)
May 27, 2008
Appraisal Agreement: Violating Federal Law Or Industry Interests?
"Fannie Mae and Freddie Mac's agreement to restrict banks from using in-house appraisal companies may violate federal law, U.S. Comptroller of the Currency John C. Dugan said in a letter to the companies' supervisor."
"The agreement and new appraisal code 'violate or conflict with federal law in fundamental respects' and should be withdrawn, Dugan said in a letter to Ofheo Director James Lockhart. The Office of the Comptroller of the Currency, which regulates national banks, has 'substantial concerns about the unintended adverse consequences' on U.S. banks, he said.
The OCC is joining mortgage and appraisal industry groups and the Office of Thrift Supervision in criticizing the deal, which was intended by Cuomo and Ofheo to improve accuracy in home valuations by separating them from the lenders making the loans.”
∙ Fannie, Freddie Appraisal Agreement May Violate Law [Bloomberg]
∙ Fannie And Freddie Forced Aim To Help Fix Appraisal Fraud [SocketSite]
Posted by socketadmin at 11:00 AM | Permalink | Comments (4) | (email story)
May 21, 2008
Keller Williams HQ For Sale (1500 Franklin), Franchise To Follow Suit?
The for sale signs have been hung on 1500 Franklin, home to Keller Williams Realty in San Francisco. And if our tipster is correct, the franchise (in San Francisco) is soon to follow suit (if it hasn’t already).
Posted by socketadmin at 2:30 PM | Permalink | Comments (8) | (email story)
May 16, 2008
Fannie To Drop Blanket Policy, Roll Out Tighter Underwriting Algorithm
As of June 1, Fannie Mae will drop its blanket "bigger down payment in declining market policy" as it rolls out a new algorithm to better screen loans at the individual level.
Under the new policy, borrowers approved by Fannie Mae's automated underwriting program will be able to borrow up to 97 percent of the value of their homes, the company said. Other loans will be accepted with loan-to-value ratios of up to 95 percent, the company said.
UPDATE: Bloomberg "Updates" and adds the bit we were looking for (and a plugged-in reader already found):
Borrowers will still need to find mortgage insurers that will accept the loans...[as the] companies are required by law to have borrowers who want to put less than 20 percent down obtain private mortgage insurance from companies such as MGIC Investment Corp. and PMI Group Inc., which have been tightening policies.
∙ Fannie Mae to Drop Down Payment Rules in Worst Areas [Bloomberg]
Posted by socketadmin at 6:30 AM | Permalink | Comments (8) | (email story)
May 14, 2008
Freddie Mac Changes Accounting, Reports Lower Than Expected Loss
Freddie Mac, the second-largest U.S. mortgage finance company behind Fannie Mae, announced that it will raise $5.5 billion in capital following a lower than expected first-quarter loss of $151 million. Keep in mind, however, that “accounting and policy changes” seem to have contributed more than the market to Freddie Mac’s "strong performance."
In the fourth quarter, Freddie posted a net loss of $2.5 billion, including $1.3 billion in losses on credit guarantees. Because of an accounting change, Freddie didn't record any such losses or gains in the first quarter.
Losses related to trading securities and derivatives fell to $58 million in the first quarter from $2.1 billion in fourth, largely due to a change in how the company accounts for the value of those assets. Similarly, expenses linked to credit guarantees fell to $258 million from $2.1 billion.
In addition, Freddie spent far less money buying delinquent loans out of pools it had guaranteed -- $51 million, compared with $736 million in the fourth quarter -- as a result of a decision in December to let delinquent mortgages sit in pools longer before buying them up.
UPDATE: From a plugged-in reader: "It is interesting that nowhere in the mainstream press (other than on Bloomberg terminals) was it reported that Freddie moved its $120 billion portfolio of asset backed securities into Level 3 assets to avoid having to mark them to market."
∙ Freddie Mac to Raise $5.5 Billion [Wall Street Journal]
∙ Fannie Mae To Market: It’s Not Getting Better, But Rather Worse [SocketSite]
Posted by socketadmin at 7:15 AM | Permalink | Comments (2) | (email story)
May 9, 2008
JustQuotes: The HBANC Comes To San Francisco For An Urban Assault
“The [Home Builders Association of Northern California] has opened an office at 660 Mission St., an "urban division" that will push legislation and policies that help foster the sort of dense, urban, infill housing that is being built in San Francisco and downtown Oakland, according to HBANC President and CEO Joseph Perkins.”
“The office will be staffed with members of HBANC's government affairs group, which battles "growth controls, frivolous and abusive lawsuits, excessive environmental regulations and runaway fees," according to the group. Those forces "are significantly impairing housing production in the Bay Area and making homes less affordable."”
“Perkins said his group would offer support to local groups like the Urban Land Institute and the San Francisco Planning and Urban Research Association, both of which push density along transit corridors. HBANC doesn't advocate for individual developments.”
∙ Builders will seek urban home deals [San Francisco Business Times]
Posted by socketadmin at 10:08 AM | Permalink | Comments (4) | (email story)
May 6, 2008
Fannie Mae To Market: It’s Not Getting Better, But Rather Worse
Fannie Mae lost $2.19 billion in the first-quarter, about four times that of average analyst expectations. And the largest U.S. mortgage company will now raise $6 billion in order to continue to fund operations.
The "severe weakness" in the housing market was worse than expected in the quarter and will continue this year, Chief Executive Officer Daniel Mudd said in a statement….Fannie Mae said home price declines this year are exceeding its estimates and attributed the larger share of its credit losses to certain types of loans in California, Florida, Michigan and Ohio. The government-chartered company, which sold $7 billion of preferred stock in December, may need as much as $15 billion to cope with the delinquencies and foreclosures, analysts said.
And while Fannie Mae’s portfolio (and collateral) continues to deteriorate, the OFHEO has said “it will lower requirements for surplus capital to 15 percent from 20 percent once the money is raised, enabling Fannie Mae to buy more mortgages. The limit may be reduced to 10 percent by September if Fannie Mae continues to retain excess capital….”
∙ Fannie Mae to Raise $6 Billion in Capital After Loss [Bloomberg]
Posted by socketadmin at 8:00 AM | Permalink | Comments (19) | (email story)
April 18, 2008
We’ve Heard Local Contractors Are Getting More Responsive Too
"Nibbi Brothers' Larry Nibbi said he has seen a flood of résumés from construction workers who were previously employed by home-builders like KB Homes and Centex. The sudden jump in the availability of workers -- and subcontractors looking for jobs -- has knocked down construction costs about 5 percent to 7 percent in some areas, Nibbi said."
"An abundance of available workers has knocked down prices for mechanical, electrical, heating, plumbing and dry wall work. Painting has remained about the same and roofing and asphalt have gone up because of the increased cost of oil."
∙ Nibbi says housing bubble loosens labor pool [San Francisco Business Times]
Posted by socketadmin at 7:37 AM | Permalink | Comments (3) | (email story)
March 19, 2008
JQ: Capital Requirements Follow The Asset Caps For Fannie/Freddie
"Regulators for Fannie Mae and Freddie Mac cut the companies' surplus capital requirement in an effort to expand their combined $1.5 trillion in mortgage investments and revive the U.S. home-loan market.
The requirement was lowered to 20 percent from 30 percent, the Office of Federal Housing Enterprise Oversight said in a news release today. The government-chartered companies, the largest sources of money for home loans, also agreed to raise a 'significant' amount of new capital, Ofheo said."
∙ Fannie, Freddie Surplus Capital Requirement Is Eased [Bloomberg]
∙ JustQuotes: What The OFHEO Are They Thinking? (Asset Caps) [SocketSite]
Posted by socketadmin at 7:35 AM | Permalink | Comments (9) | (email story)
March 17, 2008
Now Accepting Jumbo-Conforming Loans Submissions At Countrywide
From a broker update passed along by a plugged-in tipster:
Countrywide, America's Wholesale Lender will begin accepting loan submissions under the temporary "jumbo conforming" loan limit increases of the Economic Stimulus Package on Monday, March 17, 2008.
Yes, that’s today.
UPDATE: From Julian Hebron at RPM Mortgage: "Major lenders like Chase, Wells, WAMU, and Countrywide have announced pricing on super conforming 30yr fixed loans above $417k this morning, and so far rates are very close to jumbo loans. The higher pricing is probably to keep pipelines from getting jammed up in case FNMA runs into trouble purchasing these loans. FNMA guidelines for super conforming are tight, similar or tighter in some cases than existing jumbo guidelines, and far tighter than FNMA guidelines for conforming loans up to $417k."
∙ If The Plugged-In Readers Are Right, Jumbo-Conformings Are Here [SocketSite]
Posted by socketadmin at 8:51 AM | Permalink | Comments (5) | (email story)
March 13, 2008
JustQuotes: Mortgage Bankers Report On Mortgage Fraud (It’s Up)
“Rising real estate values over the past few years threatened to price new homebuyers out of the market and led some to attempt purchases before they were creditworthy. The higher valuations also led some individual real estate investors to speculate and stretch the truth on applications for multiple properties, especially in active markets, such as Florida and Nevada.
They were aided in this tactic by industry professionals who hoped that any future loan problems would be covered by a profitable sale of the collateral. Credit standards were loosened. More importantly for fraud, documentation requirements were also reduced.
There has been a long history of fraud and sour consequences associated with low/reduced/no documentation loans. As an example, loan servicing staffs are discovering a substantial percentage of prime and non-conforming delinquencies are for loans where the applicants stated their intent to occupy, but were in fact, rental properties at the outset.”
∙ Tenth Periodic Mortgage Fraud Case Report to the MBA (pdf) [mari-inc.com]
Posted by socketadmin at 3:10 PM | Permalink | Comments (4) | (email story)
March 5, 2008
JustQuotes: Talk About Terrible Timing (And Why He's A Former)
"Merrill Lynch & Co. will eliminate 650 jobs and record a $60 million charge as it stops making new home loans through First Franklin Financial, the subprime lender that former Chief Executive Officer Stan O'Neal bought in 2006.
Most of the job cuts at San Jose, California-based First Franklin will take place this month, Merrill spokesman Bill Halldin said. About 80 employees will remain at the unit to handle activities related to First Franklin's past loans, he said. Merrill announced the cuts and the charge in a statement today."
∙ Merrill Exits Subprime Lending, Cuts 650 Jobs at First Franklin [Bloomberg]
Posted by socketadmin at 1:30 PM | Permalink | Comments (9) | (email story)
March 3, 2008
Premier Lender Thornburg Mortgage Headed Towards Bankruptcy?
Thornburg Mortgage, one of the premier jumbo ARM and Alt-A mortgage lenders, has at least one analyst raising the specter of bankruptcy as the lender failed to meet its latest round of margin calls (to the tune of $270 million).
Thornburg said in a regulatory filing it is facing margin calls because the value of the alt-A mortgage-backed securities has plummeted between 10% and 15% since the end of January. The margin calls come amid "a sudden adverse change in mortgage market conditions in general" that began on Feb. 14, Thornburg said in the filing.
Thornburg doesn’t do subprime and is well known throughout the Bay Area for its single-minded focus on wealthy creditworthy borrowers.
∙ Thornburg Hasn't Met $270 Million in New Margin Calls [Bloomberg]
∙ JustQuotes: Signs Of Some (Prime) Liquidity In The Mortgage Market [SocketSite]
∙ Mortgage woes force Thornburg to pay $300M [CNNMoney]
Posted by socketadmin at 10:35 AM | Permalink | Comments (17) | (email story)
February 19, 2008
Savings From Increased Conforming Loan Limits Get Shaved
Remember that little comment we made a few weeks ago regarding increased prepayment risk associated with increasing conforming loan limits? From the Securities Industry and Financial Markets Association (SIFMA) on Friday:
Higher balance loans which are now temporarily eligible for Federal Housing Authority (FHA) and GSE guarantee programs under H.R. 5140, the Stimulus Package, will not be eligible for inclusion in TBA-eligible pools. They are instead expected to be securitized under unique pool codes for trading on a “specified pool” basis or inclusion in Real Estate Mortgage Investment Conduit (REMIC) transactions.
Thank increased prepayment risk for the unique pooling. And why does the pooling matter?
Jumbo mortgages now eligible for purchase by the nation's largest home loan finance companies [under the Stimulus Package] will be locked out of the market where trading helps lower rates to consumers...
Including jumbo loans in TBA pools would have had the unintended effect of raising rates on traditional conforming loans since investors assume they will receive the larger loans when they take delivery of the bonds, according to Freddie Mac. In TBA, the loans must be deemed fungible, so investors buy without knowing attributes.
In other words, hello "super conforming tier" and goodbye "conforming" mortgage rates for loans between $417,000 and $729,750 in San Francisco.
∙ Conforming Loan Limits: A Placeholder For Discussion And Analysis [SocketSite]
∙ SIFMA to Update MBS TBA Good Delivery Guidelines [SIFMA]
∙ Jumbo loans to be isolated from mortgage TBA: SIFMA [Reuters]
∙ If Lowering Rates Isn’t Working, Perhaps Increasing Limits Will [SocketSite]
Posted by socketadmin at 1:22 PM | Permalink | Comments (24) | (email story)
January 11, 2008
QuickLinks: SocketSite’s Countdown To Countrywide’s Sale Today
∙ JustQuotes: Is The Subprime Sickness Spreading? [SocketSite 7/07]
∙ Quicklinks: Countrywide “Materially Tightens" Underwriting Standards [SocketSite 8/07]
∙ From Rumor To Reality: Up To 12,000 Layoffs At Countrywide [SocketSite 9/07]
∙ Countrywide Secures Another $12 Billion As Application Volume Falls [SocketSite 9/07]
∙ What A Difference A Year Makes For Countrywide Financial Corp [SocketSite 10/07]
∙ Bank of America to Acquire Countrywide for $4 Billion [Bloomberg Today]
Posted by socketadmin at 9:43 AM | Permalink | Comments (17) | (email story)
January 3, 2008
First American Title Co. Closing Castro Branch (565 Castro Street)
According to a plugged-in tipster, First American Title Co. is closing their branch at 565 Castro Street. The unofficial reason: “market conditions.”
Posted by socketadmin at 2:10 PM | Permalink | Comments (14) | (email story)
December 21, 2007
Pacific Union Closes Their South Beach/SoMa Office (38 Bryant)
As a number of reader’s have either asked or emailed, Pacific Union has in fact closed down their South Beach/SoMa office.
Posted by socketadmin at 9:30 AM | Permalink | Comments (5) | (email story)
December 14, 2007
JustQuotes: Washington Mutual Cuts On Continuing Credit Crunch
"This week Washington Mutual, the Bay Area's fourth-largest bank, said it will slash 2,600 jobs nationwide and close mortgage offices as it goes to Wall Street, hat in hand, seeking a $2.9 billion capital infusion. Even some of WaMu's top performing mortgage lenders were shown the door as the company anticipates the volume of mortgage originations will plunge 40 percent next year.” (Credit crunch forces layoffs at Bay Area banks)
Posted by socketadmin at 7:35 AM | Permalink | Comments (7) | (email story)
December 12, 2007
Tag Line Irony From Alliance Title: “Closing The California Dream”
A reader notes that Alliance Title seems to have suddenly closed its doors in San Francisco and wonders what’s going on. And while we can’t confirm a why, we can confirm a what: it appears as though Alliance Title is shuttering their Escrow Services in San Francisco and San Mateo but continuing to operate their Default Services (in both cities).
Perhaps it's simply a coincidence (considering the state of the market). Or perhaps it's a canary (considering the state of the market). Regardless, we do have to note the irony (considering the “Closing the California Dream” tag line).
Posted by socketadmin at 5:07 PM | Permalink | Comments (81) | (email story)
November 13, 2007
What A Difference A Year Makes For Countrywide Financial Corp
October 2007 versus October 2006 results for Countrywide Financial Corporation:
∙ Purchase loan fundings: down 47%
∙ ARM fundings: down 81%
∙ Subprime fundings: down 99%
∙ Daily loan application activity: down 34%
∙ Delinquencies: Up to 5.94% of unpaid principal balance (versus 3.97%)
∙ Pending foreclosures: Up to 1.28% (versus 0.58%)
And no, we don't have a breakdown for California, the Bay Area, or San Francisco. Tipsters?
∙ Countrywide Reports October 2007 Operational Results [countrywide.com]
Posted by socketadmin at 2:55 PM | Permalink | Comments (9) | (email story)
October 25, 2007
Don’t Panic (Unless Perhaps You’re A Mortgage Broker)
Yes, Bank of America is exiting the wholesale mortgage business. No, that doesn’t mean they’re going to stop lending.
The nation's second-largest bank will stop offering home mortgages through brokers at the end of the year to focus on direct-to-consumer lending through its banking centers and loan officers. The move also eliminates the jobs in the bank's consumer real estate unit.
Think tighter lending standards and a renewed focus on underwriting, as well as cost savings and an ability to leverage their existing retail channel.
∙ BofA to Exit Mortgage Wholesale Business [AP]
Posted by socketadmin at 4:30 PM | Permalink | Comments (9) | (email story)
September 26, 2007
RandomRumors And Readers Report: Countrywide Cuts Commence
From a plugged-in tipster: "I talked to my friend who was just let go [at Countrywide]. Seems they're going to go into the direction right now of letting those people go who started after June 11th, 2007. He said company wide so we shall see how it unfolds. Weird to begin letting people go on a Weds as well." And yes, unconfirmed (for now).
∙ From Rumor To Reality: Up To 12,000 Layoffs At Countrywide [SocketSite]
Posted by socketadmin at 11:41 AM | Permalink | Comments (11) | (email story)
September 13, 2007
Countrywide Secures Another $12 Billion As Application Volume Falls
Countrywide has secured an additional $12 billion in “borrowing capacity through new or existing credit facilities” (good news for those waiting to fund), but also reports that year-over-year application volume was off 12% - and down 19% in terms of dollar value - at the end of August (not great news as a measure of potential "demand").
∙ From Rumor To Reality: Up To 12,000 Layoffs At Countrywide [SocketSite]
∙ Countrywide Shares Gain as $12 Billion Borrowing Limit Arranged [Bloomberg]
∙ What Happens When It’s Time To Fund? We’ll Have To Wait And See [SocketSite]
Posted by socketadmin at 9:24 AM | Permalink | Comments (9) | (email story)
September 7, 2007
From Rumor To Reality: Up To 12,000 Layoffs At Countrywide
It was two days ago that “ex SF-er” commented: “Rumor alert: Countrywide may be laying off 6,000 to 10,000 employees.”
And it was but less than two hours ago that Countrywide announced possible workforce cuts of between 10,000 and 12,000 people over the next three months. The culprit, a sharp drop in expected demand: “New mortgages probably will drop 25 percent in 2008 from this year's levels, the Calabasas, California-based company said in a statement today.”
And no, perhaps not entirely unexpected.
∙ What Happens When It’s Time To Fund? We’ll Have To Wait And See [SocketSite]
∙ Countrywide May Cut Staff by 12,000 as Demand Wanes [Bloomberg]
∙ U.S. Economy: Employment Unexpectedly Drops in August [Bloomberg]
Posted by socketadmin at 4:05 PM | Permalink | Comments (21) | (email story)
August 30, 2007
JustQuotes: Qualifying Is Great, Funding Is Even Better
“U.S. commercial paper outstanding fell for a third week, dropping 3.1 percent as more investors refuse to buy debt secured by mortgage assets.”
“Commercial paper outstanding has fallen by $244.1 billion in the past three weeks as more than 20 companies and funds including Cheyne Finance and Thornburg Mortgage Co. fail to find buyers for new paper after losses on some mortgage-related securities scared investors into safer investments. An $18 billion auction yesterday for two-year U.S. government debt drew the most demand since 1992.” (Commercial Paper Falls for Third Week as Mortgage Losses Mount)
"Thornburg Mortgage Inc., the jumbo- mortgage specialist that was forced to stop making new loans, sold $500 million of convertible preferred stock to help alleviate a shortage of cash." (Thornburg Mortgage Sells $500 Million of Preferred Stock)
Posted by socketadmin at 8:17 AM | Permalink | Comments (1) | (email story)
August 27, 2007
The Montgomery (74 New Montgomery) Gets A New Sales Team?
According to a trusted plugged-in tipster, The Montgomery (74 New Montgomery) has switched sales teams (out with Pacific Marketing Associates, in with The Mark Company) two months after their grand opening and first release of condos. If so, it’s likely some insight into the pace of sales (and perhaps the market). If not, well…we’ll just cross that bridge should we come to it.
∙ The Montgomery (74 New Montgomery): Almost Selling (For Real) [SocketSite]
∙ The Montgomery (74 New Montgomery): Pricing And Reservations [SocketSite]
Posted by socketadmin at 3:30 AM | Permalink | Comments (14) | (email story)
August 22, 2007
JustQuotes: Is This A Blip, A Bump, Or More In The Mortgage Market?
“FBR Research said on Wednesday that $150 billion to $250 billion of permanent capital is needed to normalize pricing in the depressed market for mortgage-backed securities.
However, in a note to clients, the research arm of securities firm Friedman, Billings, Ramsey & Co Inc said the process would take up to a year and will be painful for mortgage investors and originators. FBR Research said the new capital is needed to compensate for the massive "deleveraging" underway among companies that hold mortgages.
More than $20 billion worth of mortgage bonds not backed by mortgage finance companies Fannie Mae and Freddie Mac [Editor’s Note: think Jumbo] have been offered for sale in the past few days.
Mortgage investors increasingly question the underlying value of mortgage-backed securities given that orginators' lax lending standards which led to a jump in defaults. Also, many economists expect weak home prices to drop further."
∙ Mortgage mkt needs up to $250 bln of capital [Reuters]
Posted by socketadmin at 1:20 PM | Permalink | Comments (23) | (email story)
August 20, 2007
JustQuotes: Upping The Underwriting Ante (And Industry Layoffs)
“Capital One Financial Corp., a credit card and banking company, slashed its earnings forecast on Monday and said it plans to eliminate 1,900 jobs, following its decision to stop arranging mortgages through brokers....The credit card and banking company said it expects to continue to make home loans in its bank branches, where it has more control of the underwriting process.”
"The Wall Street Journal, citing an internal e-mail sent Friday to employees of Countrywide's Full Spectrum Lending unit, said the company has laid off workers in that division, which handles home loans rated between prime and subprime [i.e., Alt-A]."
∙ Capital One closes GreenPoint mortgage unit [CNNMoney]
∙ Countrywide said to start layoffs [CNNMoney]
Posted by socketadmin at 3:20 PM | Permalink | Comments (9) | (email story)
August 8, 2007
From No Real Story To A Bit Of Understated Irony (4128 24th)
After almost a month on the market the list price on 4128 24th Street has been reduced $500,000 (14.3%). Yes, this was the former home of Droubi Real Estate. Yes, it’s a Droubi Team listing. And yes, we’re biting our tongues.
∙ Listing: 4128 24th Street (4/2) - $2,995,000 [droubiteam]
∙ The Droubi Noe Valley Victorian (4128 24th): Coming Soon [SocketSite]
∙ As Promised: From Coming Soon To On The Market (4128 24th Street) [SocketSite]
Posted by socketadmin at 3:00 AM | Permalink | Comments (36) | (email story)
July 13, 2007
As Promised: From Coming Soon To On The Market (4128 24th Street)
No real story other than the symbolic end of an era. (And no, not as in Victorian.)
∙ Listing: 4128 24th Street (4/2) - $3,495,000 [droubiteam]
∙ The Droubi Noe Valley Victorian (4128 24th): Coming Soon [SocketSite]
∙ Local Brokerage Consolidation: Droubi Acquired By Coldwell Banker [SocketSite]
Posted by socketadmin at 3:00 AM | Permalink | Comments (0) | (email story)
July 6, 2007
The Droubi Noe Valley Victorian (4128 24th): Coming Soon
As a few plugged-in readers pointed out when we first noted the Coldwell Banker acquisition of Droubi Real Estate, the elegant Noe Valley Victorian (4128 24th Street) that served as home to the Droubi team (in one permutation or another) over the past 25 years is "coming soon." List Price: $3,495,000. And yes, it’s a Droubi Team listing.
∙ Listing: 4128 24th Street (4/2) - $3,495,000 [droubiteam]
∙ Local Brokerage Consolidation: Droubi Acquired By Coldwell Banker [SocketSite]
Posted by socketadmin at 7:00 AM | Permalink | Comments (0) | (email story)
June 5, 2007
BJ Droubi Droubi Real Estate Droubi Team
As an industry tipster notes, after a few weeks of simply redirecting folks to the Coldwell Banker website, the Droubi brand (and website) is back (albeit with a few fewer agents): “Working together as the Droubi Team out of their private office on 24th Street, BJ and Lamisse Droubi, together with David Pennebaker, will continue the family tradition of serving our community's real estate needs with the highest standards of integrity and professionalism.”
∙ Local Brokerage Consolidation: Droubi Acquired By Coldwell Banker [SocketSite]
Posted by socketadmin at 2:45 AM | Permalink | Comments (8) | (email story)
May 14, 2007
Local Brokerage Consolidation: Droubi Acquired By Coldwell Banker
Last month Alain Pinel Realtors acquired San Francisco Brokerage Ritchie Hallanan Real Estate. And according to a seriously "plugged-in" tipster, Droubi (formerly BJ Droubi) was just acquired by Coldwell Banker (although we haven't been able to confirm).
Posted by socketadmin at 2:00 PM | Permalink | Comments (29) | (email story)
February 1, 2007
Industry Stuff
A reader notices that a senior agent has moved his whole team from Urban Bay to Vanguard.
“You don't cover much industry stuff...but I haven't seen a large group of agents leave one office for their direct competitor like this in a while. Unless Vanguard is merging with Urban Bay, but I haven't seen anything about that. Have you heard anything?”
We haven’t. And while this is a bit beyond our normal purview, we’re happy to ask the readers (some of whom just might have a vested interest).
UPDATE: No merger, just a move. And we’re closing the comments.
Posted by socketadmin at 12:10 AM | Permalink | (email story)
