News

Four California men have been indicted on federal charges of conspiracy, bank fraud, wire fraud, and more in a case relating to the collapse of the Sonoma Valley Bank in August 2010. According to a release from the Special Inspector General for the Troubled Asset Relief Program, the accused allegedly "skirted the bank's internal controls and defrauded Sonoma Valley Bank by authorizing the bank to lend $9.5 million to a straw purchaser."

FNC, Inc.’s Residential Price Index (RPI) once again picked up its clip in February, rising at the highest annual rate in nearly eight years, the company reported. The national index, created to gauge price movement among “normal” home sales (exclusive of distressed properties), climbed 9.1 percent year-over-year in February, bringing it back to levels last seen at the peak of the housing market in June 2006 as non-distressed sales gain market share.

Pro Teck released its March Home Value Forecast, which ranks the hottest metro markets in the country. California claimed nine of the top 10 slots, while Florida claimed seven of the bottom 10 areas for home value appreciation. Though California has shown impressive gains in valuation recently—a trait that often makes California the subject of “new bubble” talk—Pro Teck CEO Tom O’Grady said he does not foresee trouble over the next five years.

In North Carolina, the mortgage insurance (MI) unit of Genworth announced the launch of a seamless integration between itself and Optimal Blue, the mortgage industry’s largest product and pricing engine (PPE).

Citigroup reported Monday profits of $3.9 billion in Q1, just barely edging out last year’s income of $3.8 billion. Gains were more impressive when put next to Q4’s earnings, which disappointed at $2.5 billion. The gain came despite a year-over-year drop in total revenues, which were down 1 percent to $20.1 billion as a result of declines in fixed income markets revenues and lower refinancing activity.

While small bankers have expressed concerns that increased regulations may hurt profit margins and make them more susceptible to buyouts, data from a new FDIC study argues otherwise. The study looked at bank trends from 1985 to 2013, and found "the recent uptick in the rate of consolidation is attributable to factors that are likely to subside once the effects of the crisis are fully behind us."

In the wake of a cyber-attack on Ellie Mae and the discovery of the Heartbleed bug, FDIC put out a release advising financial institutions on resources to stay up to date on security threats. FDIC urges financial institutions to "ensure that their Information Security staff are aware of and subscribe to reliable and recognized resources that can help quickly identify cyber risks as they emerge."

Consumer confidence reached a four-month high in April, according to the University of Michigan’s preliminary measure of consumer sentiment for the month. After taking a hit in March, the index rebounded to 82.6 in April, prompting one analytics firm to anticipate a possible return in consumer confidence to a long-term normal of 85. The university also measures current conditions and expectations, finding upticks in both this month.

According to the Pennsylvania Association of Realtors (PAR), overall home sales in the state declined 6 percent in the first quarter compared to the same time in 2013. PAR’s data shows there were 24,250 closed sales in Q1. Kim Skumanick, PAR president, attributed at least some of last quarter’s buyer/seller reluctance to adverse weather conditions.”

Real estate veteran Dan Devine has joined Long & Foster’s Greenville, Delaware, office, the independent real estate firm announced.