Quicken Loans sues DOJ, HUD for “shake down”

Quicken Loans sues DOJ, HUD for “shake down”

Says agencies demanding unwarranted penalties, false public admissions

FHFA leaving g-fees alone, revising primary mortgage insurance requirements

Move will lower fees for riskier borrowers; change is ‘revenue neutral’

Court filing reveals name of anonymous whistleblower in Zillow/Move lawsuit

Former Zillow VP of Strategic Partnerships wrote the letter
W S
Servicing / The Ticker

Increased foreclosure activity affects homebuilders

Foreclosures depress home prices and creates appraisal difficulties

Foreclosure Sign
/ Print / Reprints /
| Share More
/ Text Size+

Foreclosures also remind potential buyers of the risks of investing in real estate, which isn’t a good situation for homebuilders. KB Home actually mentioned on its last conference call that it views consumer confidence as a bigger driver of new home purchase activity than interest rates.

This effect has been apparent in the quarterly earnings reports of homebuilders so far. NVR, which is East Coast–based, reported an increase in sales, but nowhere near West Coast–focused builders, like KB Home (KBH), Lennar (LEN), Meritage (MTH) or Ryland (RYL).

Homebuyers are more likely to be comfortable taking risk when prices are appreciating at double-digit rates or higher. This phenomenon explains why the West Coast has fared so well.

Source: Market Realist
Read full story

Recent Articles by HousingWire Staff

Comments powered by Disqus