Daily Dose

Representatives from HUD and Ginnie Mae convened at the second annual Ginnie Mae Summit Monday to discuss initiatives and programs designed to create a healthy housing market. The company's plans indicate it is changing its policies and procedures as part of an ongoing effort to adapt to changes in the housing industry, preserve the integrity of its mortgage-backed securities (MBS) program, reduce risk, and better manage resources.

The Federal Housing Finance Agency's (FHFA) monthly House Price Index picked up 0.1 percent from June to July, coming down after a revised 0.3 percent increase in June. For the 12 months ending in July, FHFA reported house prices were up 4.4 percent. As of the latest index, the national HPI is now 6.4 percent below its peak in April 2007 and is roughly in line with its July 2005 level.

An upward revision in GDP growth for the second quarter bolstered optimism at Fannie Mae for the rest of the year's economic track. The mortgage giant's Economic and Strategic Research Group put out its newest outlook on Tuesday, calling for accelerated growth following the most recent news of 4.2 percent annualized GDP growth in the year's second quarter. On the other hand, the housing market is still struggling to find any real traction.

American consumers' enthusiasm for the housing market rose over the summer from the year's start, but expectations for future market performance have become more subdued, according to survey results released by Zillow. Among the thousands of Americans surveyed, confidence is higher among renters as purchase conditions continue to look favorable and rent prices climb.

The ongoing legal battle between the U.S. government and Bank of America over the sale of soured loans to Fannie Mae and Freddie Mac before the financial meltdown continued last week as lawyers for the government argued against a motion to throw out a fraud verdict rendered against the bank.

Florida Realtors released Monday its data on the state's housing market in August, reporting a 4.2 percent year-over-year rise in single-family home sales to a total of 21,594. "For several months now, stability and consistency are key trends we're seeing in Florida's housing market, as the state’s jobs outlook remains steady and the economy continues to grow," said Florida Realtors' president, Sherri Meadows.

Going against recent assertions that student debt may not prove as big a hindrance to the housing market as feared, a new report from researchers at John Burns Real Estate Consulting argues that student loans could cost the industry tens of billions of dollars this year alone.

According to transaction data from the National Association of Realtors (NAR), existing-home sales last month were at a seasonally adjusted annual rate of 5.05 million, a decrease of 1.8 percent from July's sales pace of 5.14 million and a drop of 5.3 percent compared to last year. The group's chief economist, Lawrence Yun, pinned August's slower pace to a decline in all-cash purchases made by investors.

As the housing market continues to mend, analysts find the young-adult sector of the market is lagging. Some feel the lack of young first-time buyers is the main component holding the housing market back. However, this may not be the case everywhere. A burgeoning young, knowledge-based workforce is contributing to housing and overall economic growth in Pittsburgh and Cleveland, according to the latest Home Value Forecast from Pro Teck Valuation Services.

Selim Zherka, a resident of Somers, New York, was arrested by federal agents on Thursday and charged with falsifying information to obtain loans totaling more than $146 million from three banks: North Fork Bank (now Capital One), Sovereign Bank (now Santander), and Signature Bank, according to an announcement from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).