Tag Archives: Investment

A recent industry survey detects rising optimism in the commercial real estate and single-family housing sectors over the next few years. The survey, conducted by the Urban Land Institute and Ernst & Young, finds a consensus among analysts that the real estate market will improve as transaction volumes rise and vacancies decline. "After a prolonged period of uncertainty, we're seeing a revival of investor confidence as the economy continues to recovery," said Dean Schwanke, SVP at the Urban Land Institute.

Fannie Mae issued approximately $8.2 billion of multifamily mortgage-backed securities (MBS) in Q1 2013, according to a company release.

Prices on U.S. homebuilder bonds are trading at or near their pre-crisis levels, but ratings continue to struggle, according to a new report from Fitch Ratings. While some issuers may be able to regain their pre-crisis ratings, Fitch believes others may have more of an uphill battle as they work to grow their businesses, increase profitability, and improve credit metrics. At the same time, bond issuers will have to demonstrate that they can sustain any improvement in credit metrics and still remain disciplined in their land strategies.

Investor activity saw a decline last year as the median price for investment homes increased, the National Association of Realtors (NAR) reported.

In its latest US Housing Market Update, Capital Economics addresses the uneven gains seen between home purchase prices and rent costs over the last year. (The report cites January data from CoreLogic, which shows prices rising 9.8 percent year-over-year with rents rising only 2.7 percent in the same period.) The disparity is weighing on rental yields, threatening to drive out investors in a market still heavily reliant on them. However, property economist Paul Diggle sees no reason to worry just yet.

Wells Fargo has another jewel to add to its crown: The Mortgage Bankers Association (MBA) ranked the bank as the top commercial/multifamily mortgage originator for 2012. Among other categories: Bank of America Merrill Lynch was the top originator for commercial bank loans, while Red Mortgage Capital, LLC was No. 1 for loans guaranteed by Ginnie Mae or the Federal Housing Administration. Cohen Financial was the top originator for specialty finance.

The story of the London Interbank Offered Rate (Libor) scandal added another chapter in March as Freddie Mac brought suit against Barclays, Bank of America, Citibank, and several other institutions for investment losses related to alleged rate-rigging practices.

A court of appeals upheld a lower court ruling against MBIA's claim seeking money from FDIC's sale of IndyMac Bank.

A major investor in residential mortgage-backed security trusts filed a complaint against Nationstar over its selling of non-performing loans backing securities.

Strong demand, tight inventory, and positive signs among broader economic indicators led Capital Economics to revise its previous price gain forecast up to 8 percent.