Investments

Lennar agrees to buy luxury homebuilder WCI Communities for $643 million…or does it?

Agreement includes provision that allows WCI to seek better offer
WCI Communities, a “lifestyle community developer and luxury homebuilder” headquartered in Florida, announced this week that it agreed to a “definitive merger agreement” with fellow homebuilder Lennar for quite the premium, but the company is seeking out a better deal.
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Evictions in America: A tale of two cities

The approach of NYC versus San Francisco is enlightening
The contrast between how New York City and San Francisco have approached the affordable housing crisis is striking. Both cities are large metropolitan areas with little geographical room to build. But in once case city action led to an 18% decrease in evictions, in another it led to an increase of 32%. 
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Silver Bay Realty Trust loads up on more single-family rental homes

Acquires 320 homes for $41.5 million
Silver Bay Realty Trust, a real estate investment trust and one of the country’s largest operators of single-family rental homes, is expanding its portfolio. The REIT announced Wednesday that it plans to acquire approximately 320 leased homes located in Atlanta, Tampa and Orlando from an undisclosed seller for approximately $41.5 million in cash.
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TransUnion: Rate hike could cause payment shock for 9M borrowers

But for everyone else, the impact will be minimal
TransUnion’s latest study shows the results of a rate hike on consumers, should the Fed ever decide to raise interest rates [not today, obviously]. While nine million could be looking at a payment shock that they can’t absorb, the rest of consumers, while possibly getting a small monthly increase, will be relatively unaffected, unless...
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CFPB consumer complaint database about to hit 1 million complaints

Cordray discusses milestone during Wells Fargo hearing
The Consumer Financial Protection Bureau’s much-maligned consumer complaint database is about to reach 1 million total complaints, CFPB Director Richard Cordray said Tuesday. And, as it turns out, the database proved helpful in levying the $185 million fine against Wells Fargo for opening 2 million fake accounts.
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Clinton weighs in on 'deeply disturbing' Wells Fargo scandal, vows to protect CFPB

Rebuts Republican calls to alter or abolish CFPB
Well, it’s now coming at Wells Fargo from nearly every angle. As the embattled megabank’s CEO, John Stumpf, prepared to be grilled on Capitol Hill about the fake account scandal surrounding the bank, Democratic presidential nominee Hillary Clinton weighed in on the issue, saying that she is “deeply disturbed” by the bank’s conduct, and took the opportunity to defend the Consumer Financial Protection Bureau.
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Freddie Mac: Mortgage interest rates will hit 40-year low in 2016

GSE predicts best year for home sales since 2006
If current trends hold steady, this year could prove to be a banner year for housing, Freddie Mac said in a new report. In Freddie Mac’s new monthly outlook report, the government-sponsored enterprise states that it is currently projecting a “surge” in mortgage originations during the third quarter, further reinforcing its view that 2016 will be the “best year” for home sales since 2006.
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