Deptatment of Justice warns of debt relief scams

The Dept. of Justice Consumer Protection Branch is warning consumers about debt relief scams and providing tips to avoid such scams. Tips include: •Fraudulent debt relief companies will often make claims of being able to negotiate a one-time settlement with creditors that will reduce a consumer’s principal by 50 percent or more. The Consumer Federation of America, an association of non-profit consumer organizations, warns that such a promise is a virtual impossibility. •If you have trouble making credit card payments, immediately call the creditor to work out a payment plan. If that is unsuccessful, a non-profit credit counseling service may be able to help you. These services may charge a small fee, but the cost will be substantially less than using a debt relief company. An excellent resource for locating a local credit counseling service is the National Foundation for Credit Counseling, at www.nfcc.org. •If a company offers a “one size fits all” solution, what they are really offering is a “no size fits anyone” problem. Legitimate credit counseling services tailor a consolidation plan to each consumer’s individual needs. •Do not be afraid to ask questions. Demand that the company disclose set-up and maintenance fees, and that these fees be set in writing. According to the Consumer Federation of America, consumers should not pay more than $50 for the set-up fee and $25 for monthly maintenance of the account. •Do not rely on the company’s website. Conduct your own research of the company – the Better Business Bureau and the state consumer protection agencies are valuable resources. For more information on debt relief scams, see the Federal Trade Commission’s website. Additional information on legitimate debt relief services can be found on the Consumer Federation of America’s website. As always - keep the faith!

CFPB wants to simplify Mortage shopping for Borrowers

No-fee mortgage option is on the way ... Richard Cordray, who runs the consumer bureau, announced new rules Friday that would limit fees on mortgages. NEW YORK (CNNMoney) -- Lenders would have to offer potential home buyers an option to get mortgages with no fees, under a rule proposed by the Consumer Financial Protection Bureau. Generally, homeowners pay fees and points in exchange for lower overall interest rates on mortgage loans. "Consumers have a hard time comparing loans when they are dealing with a bewildering array of points and fees," said Richard Cordray, director of the Consumer Financial Protection Bureau, in a statement. "We want to provide consumers with clearer options and enable them to choose the loan that they believe is right for them." In the Dodd-Frank Act, Congress wanted to clean up the process of getting a residential mortgage, which was criticized as a contributing factor to the financial crisis. The idea was to ensure consumers understand the mortgage loans they're offered, as well as all the accompanying fees. While good news for consumers, the mortgage proposal is actually easier on lenders. Lawmakers banned extra fees and points on mortgage loans in cases when the originator makes a commission -- which happens with most mortgages. Under this proposed rule, the bureau would allow lenders to keep offering consumers options to reduce their mortgage interest through fees and points, as long as those fees and points actually reduce the overall interest rate on the mortgage. Lenders must offer the no-fee mortgages as well. A senior official with the consumer bureau explained that the rule was a balance between a blanket ban on fees and the current origination process, which has no rules for mortgage fees. Consumer groups and those in the lending industry weighed in, saying it would be better to keep giving consumers the opportunity to lower interest rates by paying more up front. The bureau will now collect comment on the rules and finalize them to take effect by January.

Renting ... Buying a home pays off after three years on average

In the Coachella Valley, rents are rising, housing affordability is at record levels, inventory is extremely low and interest rates are near all time lows; and there is conversation going on about flipping to a Seller's Market and certainly everyone is hearing about multiple offers on homes (at least at certain price points). All of this is contributing to rising prices and many are concerned that the market is rebounding too quickly fearing another downturn is in our future. Should I buy or should I rent and pay the rising rental rates. There is a new tool designed to help you make a decision. Zillow's analysis, which covered more than 200 metropolitan areas and 7,500 U.S. cities, found that buying is a better financial decision than renting in the Riverside-San Bernardino area if you live in the home for at least two years. In my opinion, the information release is helpful, however, the Coachella Valley differs so much from the rest of the Riverside - San Bernadino are that I believe the numbers would be different. I would really like to see the formula (or an example) used to allow a more insightful opinion ... Click here or cut and paste for the full zillow story: as always, Keep the faith! La Quinta Real Estate

Credit scoring 2012 and beyond

Credit scoring is going to a new level as recently announced by CoreLogic/Fico, one of the 3 major reporting agencies. It has been rumored for years and has made many wonder what it will entail. Surely it is likely that future reporting from your Lender(s) and other creditors will detail information such as ~ Do you make your payments in days 1-5, 6-10 or 11-15 of the grace period which would assist this new system greatly. Here's the release from CoreLogic/Fico website ... FICO and CoreLogic Announce Availability of More Predictive Mortgage Credit Score Designed to Enable Growth in Mortgage Lending Market Innovative predictive score can help lenders safely grow mortgage origination volumes CoreLogic® (NYSE: CLGX), a leading provider of information, analytics and business services, and FICO (NYSE: FICO), the leading provider of predictive analytics and decision management technology, today jointly introduced a high-performance consumer credit risk score that is expected to improve lending decision quality and increase the number of mortgage loans lenders make. The new FICO® Mortgage Score Powered by CoreLogic® evaluates the traditional credit data from the national credit data repositories and the unique supplemental consumer credit data contained in the CoreLogic CoreScore™ credit report, introduced in October 2011, to deliver a more comprehensive and accurate view of a consumer’s credit risk profile for loan prequalification and origination. The new scoring model was designed specifically to predict mortgage loan performance and has shown a substantial improvement in risk prediction over other generally available risk scores in use today. As a result, this new scoring model developed by FICO to leverage data only available on the CoreLogic CoreScore credit report, will help mortgage lenders more safely and profitably expand their origination volumes, ultimately strengthening and growing the overall mortgage lending market. According to a recent FICO quarterly survey of bank risk professionals, conducted by the Professional Risk Managers’ International Association (PRMIA), bankers continue to lack confidence in the housing finance marketplace. Of bankers surveyed, approximately 75 percent of respondents expect the level of mortgage delinquencies to increase or stay the same over the six-month period following the survey, and more than 85 percent hold the same view for home equity line delinquencies. “In this complicated operating environment, lenders are increasingly turning to new data sources to help better interpret a consumer’s credit risk, so that more loans can be approved while mitigating potential losses,” said Tim Grace, senior vice president of product management at CoreLogic. “Today, we are announcing an industry first—a new composite, multi-bureau credit score generated from both traditional credit data and CoreLogic supplemental data, expanding the applicant credit spectrum by including property transaction data, landlord/tenant data, borrower-specific public data, and other alternative credit data. For a top-20 lender processing 300,000 applications a year, adopting this new score could translate into 3,900 more loans approved every year along with a net financial benefit of $14.5 million. As such, it not only provides a more complete and predictive evaluation of a consumer’s credit risk profile, but it can empower lenders to better mitigate risk and approve more loans for more consumers.” “The new FICO Mortgage Score is designed especially for prequalification and origination and delivers increased insight when it matters most,” said Joanne Gaskin, senior director of Scores product management and mortgage practice leader at FICO. “For many lenders, the increased predictive lift will translate into thousands of new mortgages, and the avoidance of millions of dollars in bad loans and associated costs. This innovation is a win-win for lenders and consumers alike.” The new FICO® Mortgage Score Powered by CoreLogic® maintains a consistent score range, set of reason codes and odds-to-score relationship with prior FICO® Score versions, making it easy for lenders to integrate and for consumers to understand. Additionally, the CoreScore Solution maintains backward compatibility making it readily available within existing CoreLogic Credco Instant Merge® integrations – the most widely used credit report in the mortgage industry. For more information about the new FICO® Mortgage Score Powered by CoreLogic® and the CoreScore credit report, visit www.CoreScore.com. About CoreLogic CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The Company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built one of the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. The Company, headquartered in Santa Ana, Calif., has approximately 5,000 employees globally. For more information, visit www.corelogic.com. CORELOGIC, the stylized CoreLogic logo, CREDCO and INSTANT MERGE are registered trademarks owned by CoreLogic, Inc. and/or its subsidiaries. CORESCORE is a common law trademark owned by CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective owners. No trademark of CoreLogic shall be used without the express written consent of CoreLogic. CoreLogic Statement Concerning Forward Looking Statements Certain statements made in this news release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the mortgage default industry, expected number of future mortgage delinquencies, benefits of the CoreLogic CoreScore credit report and/or the new credit score. Factors that could cause the anticipated results to differ from those described in the forward-looking statements are set forth in Part I, Item 1A of CoreLogic’s most recent Annual Report on Form 10-K for the year ended December 31, 2011, including but not limited to: limitations on access to data from external sources, including government and public record sources; changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our customers or us, including with respect to consumer financial services and the use of public records and consumer data which may, among other things, limit the manner in which we conduct business with our customers; compromises in the security of our data transmissions, including the transmission of confidential information or systems interruptions; difficult conditions in the mortgage and consumer credit industry, including the continued decline in mortgage applications, declines in the level of loans seriously delinquent and continued delays in the default cycle, the state of the securitization market, increased unemployment, and conditions in the economy generally; our cost reduction initiatives and our ability to significantly decrease future allocated costs and other amounts in connection therewith; risks related to our international operations and the outsourcing of various business process and information technology services to third parties, including potential disruptions to services and customers and inability to achieve cost savings; and impairments in our goodwill or other intangible assets. The forward-looking statements speak only as of the date they are made. CoreLogic does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. About the FICO® Score With over 10 billion FICO® Scores used worldwide to empower lenders to make credit decisions, the FICO® Score has become the standard measure of credit risk worldwide. FICO® Scores are used today in more than 20 countries on five continents, as well as all of the top 50 U.S. financial institutions and both the 25 largest U.S. credit card issuers and auto lenders. The latest FICO® Score version, the FICO® 8 Score, has already been adopted by more than 7,500 lenders. About FICO FICO (NYSE:FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company’s groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO’s innovative solutions include the FICO® Score — the standard measure of consumer credit risk in the United States — along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world’s top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through www.myFICO.com. Learn more at www.fico.com. FICO: Make every decision count™. For FICO news and media resources, visit www.fico.com/news. Statement Concerning Forward-Looking Information Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company’s Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2011 and its last quarterly report on Form 10-Q for the period ended December 31, 2011. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements. FICO and “Make every decision count” are trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries. Keep the faith!!!

Foreclosure Assistance in California from Big Brother in 2013

California Attorney General Kamala Harris recently announced that Governor Edmund G. Brown signed two provisions of the much-debated Homeowner Bill of Rights into law. Read below the announcement for the rudiments of the bill. The Homeowner Bill of Rights so far consists of a series of related bills containing provisions that prohibit certain practices by lenders that have been attributed to the state’s foreclosure crisis. Chief among the banned practices are robo-signing (signing of fraudulent mortgage documents without review) and dual-track foreclosure (starting foreclosure proceedings while the homeowner is in negotiations to save the home). The bill imposes civil penalties on perpetrators of these activities. In addition, it guarantees struggling homeowners a single point of contact at their lender who has knowledge of their loan and direct access to decision makers. “Californians should not have to suffer the abusive tactics of those who would push foreclosure behind the back of an unsuspecting homeowner,” said Brown. “These new rules make the foreclosure process more transparent so that loan servicers cannot promise one thing while doing the exact opposite.” The laws will go into effect at the start of 2013. Borrowers can access courts to enforce their rights under the legislation. The Homeowner Bill of Rights also contains a number of bills currently outside of the conference committee process. These other bills enhance law enforcement responses to mortgage and foreclosure-related crime. In addition, some bills are designed to help communities fight neighborhood blight resulting from foreclosures and provide enhanced protection for tenants in foreclosed homes. The bill, unveiled by Harris in February, builds upon reforms negotiated in the national mortgage settlement between leading lenders and 49 states. Harris secured up to $18 billion for California homeowners in the agreement, some of which was used to establish a Mortgage Fraud Strike Force intended to investigate crime and fraud associate with mortgages and foreclosures. “The California Homeowner Bill of Rights will give struggling homeowners a fighting shot to keep their home,” said Harris. “This legislation will make the mortgage and foreclosure process more fair and transparent, which will benefit homeowners, their community, and the housing market as a whole.” Applicability of the Law: This law will generally come into effect on January 1, 2013. It only pertains to first trust deeds secured by owner-occupied properties with one-to-four residential units, unless otherwise indicated below. "Owner-occupied" means the property is the principal residence of the borrower and secured by a loan made for personal, family, or household purposes (CC 2924.15). A "borrower" under this law must generally be a natural person and potentially eligible for a foreclosure prevention alternative program offered by the mortgage servicer, but not someone who has filed bankruptcy, surrendered the secured property, or contracted with an organization primarily engaged in the business of advising people how to extend the foreclosure process and avoid their contractual obligations (CC 2920.5(c)). A "foreclosure prevention alternative" is defined as a first lien loan modification or another available loss mitigation option, including short sales (CC 2920.5(b)). Some of the requirements of this law do not apply to "smaller banks" that, during the preceding annual reporting period, foreclosed on 175 or fewer properties with one-to-four residential units (CC 2924.18(b)). No Dual Tracking During Short Sale: A mortgage servicer or lender cannot record a notice of default or notice of sale, or conduct a trustee's sale, if a foreclosure prevention alternative has been approved in writing by all parties (e.g., first lien investor, junior lienholder, and mortgage insurer as applicable), and proof of funds or financing has been provided to the servicer. This requirement expires on January 1, 2018. Effective January 1, 2018, a lender or mortgage servicer cannot record a notice of sale or conduct a trustee's sale if the borrower's complete application for a foreclosure prevention alternative is pending, and until the borrower has been given a written determination by the mortgage servicer. Smaller banks are only covered by the requirements taking effect in 2018. CC 2924.11. Cancelling a Pending Trustee's Sale: A mortgage servicer must rescind or cancel any pending trustee's sale if a short sale has been approved by all parties (e.g., first lien investor, junior lienholder, and mortgage insurer as applicable), and proof of funds or financing has been provided to the lender or authorized agent. For other types of foreclosure prevention alternatives, a lender must record a rescission of a notice of default or cancel a pending trustee's sale if a borrower executes a permanent foreclosure prevention alternative. These requirements do not apply to smaller banks, and will sunset on January 1, 2018. CC 2924.11. Providing a Single Point of Contact: For a borrower requesting a foreclosure prevention alternative, the mortgage servicer must, upon the borrower's request, promptly establish and provide a direct means of communication with a single point of contact. The single point of contact must remain assigned to the borrower's account until all loss mitigation options offered by the mortgage servicer are exhausted or the borrower's account becomes current. The single point of contact must be an individual or team responsible for, among other things, coordinating the application for the foreclosure prevention alternative, giving timely and accurate status reports, having access to those with the ability and authority to stop foreclosure proceedings, and referring the borrower to a supervisor if any upon the borrower's request. Each team member must be knowledgeable about a borrower's situation and current status in the foreclosure alternatives process. These requirements do not apply to smaller banks as defined. CC 2923.7. No Dual Tracking During Loan Modification: A mortgage servicer generally cannot record a notice of default, notice of sale, or conduct a trustee's sale for a nonjudicial foreclosure if the borrower’s complete application for a first lien loan modification is pending as specified, or if a borrower is in compliance with the terms of a written trial or permanent loan modification, forbearance, or repayment plan. The borrower will have 30 days to appeal the denial of a loan modification, and the mortgage service cannot proceed with the above foreclosure steps until 31 days after giving the borrower a written denial of a loan modification, or longer if the borrower appeals the denial. To prevent abuse of this provision, however, a mortgage servicer is not obligated to evaluate a first lien loan modification application from a borrower who has previously been evaluated before 2013, or given a fair opportunity to be evaluated, unless the borrower submits a documented material change in the borrower's financial circumstances. These specific requirements expire on January 1, 2018 at which time, as stated above, a lender or mortgage servicer will be prohibited from recording a notice of sale or conducting a trustee’s sale if the borrower’s complete application for a foreclosure prevention alternative is pending, and until the borrower has been given a written determination by the mortgage servicer. Smaller banks are only covered under the requirements commencing in 2018. CC 2923.6 and 2924.11. No Late Fees or Application Fees: A mortgage servicer cannot collect any late fees while a complete first lien loan modification application is under consideration, a denial is being appealed, the borrower is making timely modification payments, or a foreclosure prevention alternative is being evaluated or exercised. A mortgage servicer is also prohibited from charging for any application, processing, or other fee for a first lien loan modification or other foreclosure prevention alternative. These requirements do not apply to smaller banks as defined. These requirements will sunset on January 1, 2018. CC 2924.11. Additional Loan Modification Safeguards: Until January 1, 2018, a mortgage servicer must provide written acknowledgment of receipt within five business days of a borrower's submission of a complete first lien modification application or any document in connection with a first lien modification application. The acknowledgement of receipt must provide a description of the loan modification process, including an estimated timeframe for the mortgage servicer to decide, other timeframes, and any deficiencies in the borrower's application. CC 2924.10. Furthermore, effective January 1, 2013 with no expiration date, if a first lien loan modification is denied, a mortgage service must send a written notice to the borrower with the reasons for denial and additional information as specified. On January 1, 2018, the required content of the denial letter will change to comport with other changes that will take effect. Smaller banks need not comply with these requirements until January 1, 2018. CC 2923.6 and 2924.11. Binding if Loan is Transferred: Any written approval for a foreclosure prevention alternative shall be honored by a subsequent mortgage servicer in the event the borrower's loan is transferred or sold. This requirement does not apply to smaller banks. This requirement will expire on January 1, 2018. CC 2924.11. Lender Required to Review Foreclosure Documents: No entity can record a notice of default or otherwise initiate the foreclosure process, except for the holder of the beneficial interest under the deed of trust, an authorized designated agent of the holder of the beneficial interest, or the original or substituted trustee under the deed of trust. Furthermore, a mortgage servicer must ensure that certain foreclosure documents are accurate and complete, and supported by competent and reliable evidence. Those foreclosure documents are the initial contact declaration, notice of default, notice of sale, assignment of deed of trust, substitution of trustee, and declarations and affidavits filed in a judicial foreclosure proceeding. A mortgage servicer must, before recording or filing these documents, review competent and reliable evidence substantiating a borrower’s default and the right to foreclose. The above provisions have no expiration date. However, until January 1, 2018, any mortgage servicer who engages in multiple and repeated uncorrected violations of its obligation to review foreclosure documents shall be liable for a civil penalty up to $7,500 per deed of trust in an action brought by the Attorney General, district attorney, or city attorney, or in an administrative proceeding brought by the DRE, DOC, or DFI against a respective licensee (see below for a borrower's legal remedies). These provisions apply to all trust deeds, regardless of occupancy or number of units. CC 2924(a)(6) and 2924.17. Extending Initial Contact Requirement: Existing law requiring a lender to contact a borrower 30 days before initiating foreclosure has been modified as well as extended with no expiration date. Originally set to expire on January 1, 2013, this provision generally prohibits a mortgage servicer or lender from recording a notice of default until 30 days after the lender or mortgage servicer contacts the borrower in person or by telephone to assess the borrower's financial situation and explore options for avoiding foreclosure. During the initial contact, the mortgage servicer must advise the borrower of the right to request a subsequent meeting within 14 days, and provide a toll-free number to find a HUD-certified housing counseling agency. Any meeting may occur telephonically. Instead of directly contacting the borrower, a mortgage servicer can satisfy due diligence requirements in the manner specified. A notice of default must include a declaration that the mortgage servicer has complied with or is exempt from this initial contact requirement. An existing requirement for a declaration in the notice of sale will be eliminated. Until January 1, 2013, this law generally applies to loans made from 2003 to 2007 secured by owner-occupied residential properties with one-to-four units, whereas starting January 1, 2013, this law will generally apply to first trust deeds secured by owner-occupied residential properties with one-to-four units. CC 2923.5 and 2923.55. Notifying Borrower Before NOD: A mortgage servicer cannot record a notice of default for a nonjudicial foreclosure until the mortgage servicer informs the borrower of the borrower’s right to: (1) request copies of the promissory note, deed of trust, payment history, and assignment of loan if any to demonstrate the mortgage servicer's right to foreclose; and (2) certain protections under the Servicemembers Civil Relief Act if the borrower is a service member or dependent. This requirement does not pertain to smaller banks as defined. This requirement expires on January 1, 2018. CC 2923.55. Notifying Borrower After NOD: Within 5 business days after recording a notice of default, a mortgage servicer must generally send a written notice to the borrower on how to apply for the mortgage servicer’s foreclosure prevention alternatives if any. This notice is not required if the borrower has previously exhausted the first lien loan modification process offered by the mortgage servicer as specified. This requirement does not apply to smaller banks as defined. This requirement shall sunset on January 1, 2018. CC 2924.9. Postponing a Trustee's Sale: Whenever a trustee’s sale is postponed for at least 10 business days, the lender or authorized agent must provide written notice of the new sale date and time to the borrower within five business days after the postponement. However, any failure to comply with this requirement will not invalidate any trustee's sale that would otherwise be valid. This requirement applies to all trust deeds, regardless of occupancy or number of units. This requirement shall sunset on January 1, 2018. CC 2924(a)(5). Legal Remedies for Borrowers: A borrower may generally bring a private right of action to enjoin or stop a trustee's sale until the mortgage servicer has corrected certain material violations of this law. If a trustee’s deed has already been recorded, the borrower may recover actual monetary damages for certain material violations. For intentional and reckless violations by the mortgage servicer, the borrower may recover treble actual damages or $50,000, whichever is greater. A prevailing borrower who is awarded relief under this provision can also recover reasonable attorneys’ fees and costs. Certain violations by a person licensed by the DRE, DOC, or DFI are deemed violations of that person's licensing laws. These provisions do not apply to smaller banks until 2018. CC 2924.12. C.A.R. opposed this provision because of our concern for bad faith claims, but the Legislature was not convinced. Lender's Standard of Care to Investors: The Legislature intends for a mortgage servicer to offer the borrower a loan modification or workout plan in accordance with the mortgage servicer's contractual or other authority. Any duty a mortgage servicer has to maximize net present value under a pooling and servicing agreement is owed to all investors, not any particular investor. A mortgage servicer will be deemed as acting in the best interest of all investor if it implements a loan modification or workout plan in accordance with certain specified parameters. CC 2923.6. Keep the Faith!

Inventory Down, Prices up, Things are looking better - Surprised?

We've all been watching the headlines and listening to the news. There are signs that we are healing and tipping towards a 'Seller's market'; Heck - Multiple Offers are the norm ... I have attached information from the Census Bureau for June 2012 FOR IMMEDIATE RELEASE WEDNESDAY, JULY 18, 2012 AT 8:30 A.M. EDT NEW RESIDENTIAL CONSTRUCTION IN JUNE 2012 The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for June 2012: BUILDING PERMITS Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 755,000. This is 3.7 percent (±1.0%) below the revised May rate of 784,000, but is 19.3 percent (±1.8%) above the June 2011 estimate of 633,000. Single-family authorizations in June were at a rate of 493,000; this is 0.6 percent (±0.8%)* above the revised May figure of 490,000. Authorizations of units in buildings with five units or more were at a rate of 241,000 in June. HOUSING STARTS Privately-owned housing starts in June were at a seasonally adjusted annual rate of 760,000. This is 6.9 percent (±13.3%)* above the revised May estimate of 711,000 and is 23.6 percent (±16.8%) above the June 2011 rate of 615,000. Single-family housing starts in June were at a rate of 539,000; this is 4.7 percent (±10.1%)* above the revised May figure of 515,000. The June rate for units in buildings with five units or more was 213,000. HOUSING COMPLETIONS Privately-owned housing completions in June were at a seasonally adjusted annual rate of 622,000. This is 2.6 percent (±12.5%)* above the revised May estimate of 606,000 and is 7.2 percent (±13.2%)* above the June 2011 rate of 580,000. Single-family housing completions in June were at a rate of 470,000; this is 1.3 percent (±9.8%)* above the revised May rate of 464,000. The June rate for units in buildings with five units or more was 134,000. New Residential Construction data for July 2012 will be released on Thursday, August 16, 2012, at 8:30 A.M. EDT. Our Internet site is: http://www.census.gov/newresconst EXPLANATORY NOTES In interpreting changes in the statistics in this release, note that month-to-month changes in seasonally adjusted statistics often show movements which may be irregular. It may take 3 months to establish an underlying trend for building permit authorizations, 4 months for total starts, and 6 months for total completions. The statistics in this release are estimated from sample surveys and are subject to sampling variability as well as nonsampling error including bias and variance from response, nonreporting, and undercoverage. Estimated relative standard errors of the most recent data are shown in the tables. Whenever a statement such as “2.5 percent (±3.2%) above” appears in the text, this indicates the range (-0.7 to +5.7 percent) in which the actual percent change is likely to have occurred. All ranges given for percent changes are 90-percent confidence intervals and account only for sampling variability. If a range does not contain zero, the change is statistically significant. If it does contain zero, the change is not statistically significant; that is, it is uncertain whether there was an increase or decrease. The same policies apply to the confidence intervals for percent changes shown in the tables. On average, the preliminary seasonally adjusted estimates of total building permits, housing starts and housing completions are revised about three percent or less. Explanations of confidence intervals and sampling variability can be found on our web site listed above. * 90% confidence interval includes zero. The Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero. http://www.census.gov/newresconst U.S. Census Bureau News Joint Release U.S. Department of Housing and Urban Development U.S. Department of Commerce Washington, D.C. 20233 Table 1. New Privately-Owned Housing Units Authorized in Permit-Issuing Places [Thousands of units. Detail may not add to total because of rounding] 2 to 4 5 units Total 1 unit units or more Total 1 unit Total 1 unit Total 1 unit Total 1 unit 2011: June 633 412 23 198 71 36 101 70 323 225 138 81 July 627 417 24 186 64 38 100 71 331 225 132 83 August 645 429 27 189 62 35 110 76 332 234 141 84 September 616 428 21 167 67 39 110 75 307 233 132 81 October 667 444 24 199 66 42 109 74 359 244 133 84 November 709 451 23 235 80 46 107 73 360 244 162 88 December 701 454 24 223 76 41 112 78 358 246 155 89 2012: January 684 452 20 212 78 37 101 75 377 245 128 95 February 707 478 25 204 82 46 119 79 361 260 145 93 March 769 466 22 281 81 44 130 84 371 241 187 97 April 723 475 22 226 88 45 114 76 359 248 162 106 May (r) 784 490 22 272 78 43 119 82 412 255 175 110 June (p) 755 493 21 241 78 43 118 81 379 257 180 112 Average RSE (%)1 1 1 6 1 3 3 2 2 1 1 1 2 Percent Change: June 2012 from May 2012 -3.7% 0.6% -4.5% -11.4% 0.0% 0.0% -0.8% -1.2% -8.0% 0.8% 2.9% 1.8% 90% Confidence Interval 3 ± 1.0 ± 0.8 ± 3.2 ± 3.0 ± 7.2 ± 10.2 ± 3.5 ± 4.1 ± 0.8 ± 1.0 ± 1.1 ± 1.4 June 2012 from June 2011 19.3% 19.7% -8.7% 21.7% 9.9% 19.4% 16.8% 15.7% 17.3% 14.2% 30.4% 38.3% 90% Confidence Interval 3 ± 1.8 ± 0.8 ± 8.5 ± 5.0 ± 9.9 ± 14.0 ± 4.0 ± 4.7 ± 1.6 ± 1.9 ± 3.0 ± 3.8 2010: 604.6 447.3 22.0 135.3 73.8 49.1 103.5 75.4 299.1 232.3 128.2 90.6 2011: 624.1 418.5 21.6 184.0 68.5 39.0 102.7 70.5 320.7 227.1 132.2 81.9 RSE (%) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) 2011: Year to Date2 294.6 208.5 9.3 76.8 33.0 18.9 45.7 33.3 152.9 113.9 63.0 42.4 2012: Year to Date2 380.3 249.4 10.8 120.0 38.6 21.1 55.9 40.1 200.1 134.3 85.6 53.9 RSE (%) 1 1 5 (Z) 3 3 2 1 1 (Z) 1 1 Year to Date Percent Change 4 29.1% 19.6% 16.1% 56.4% 17.0% 11.7% 22.4% 20.5% 30.9% 17.9% 35.8% 27.2% 90% Confidence Interval 3 ± 1.4 ± 1.2 ± 8.6 ± 2.2 ± 5.9 ± 8.0 ± 2.5 ± 3.0 ± 1.1 ± 1.3 ± 2.3 ± 2.9 2011: June 63.8 41.5 2.1 20.3 8.2 3.7 10.1 7.4 31.1 21.9 14.3 8.5 July 52.6 35.9 1.9 14.8 5.1 3.5 9.1 6.4 27.6 18.9 10.8 7.2 August 62.6 41.6 2.6 18.4 6.0 3.4 11.3 7.8 31.4 22.3 13.8 8.1 September 53.2 36.3 1.9 15.1 6.0 3.6 10.5 7.0 25.4 18.9 11.3 6.8 October 52.0 34.4 2.0 15.7 5.8 3.6 10.0 6.5 26.1 17.8 10.1 6.5 November 51.9 31.6 1.8 18.5 6.5 3.5 8.4 5.3 25.6 16.9 11.4 6.0 December 51.6 29.8 1.8 20.0 5.7 2.8 7.1 4.2 27.2 16.9 11.5 6.0 2012: January 46.3 29.9 1.3 15.1 4.8 2.2 5.0 3.3 28.4 18.3 8.2 6.1 February 51.9 35.1 1.7 15.2 5.5 2.7 6.5 4.6 28.9 21.1 11.1 6.8 March 67.4 42.2 2.0 23.2 5.8 3.6 10.3 7.3 34.3 22.5 17.0 8.9 April 62.5 43.9 1.8 16.8 7.6 4.0 10.6 7.8 30.5 22.4 13.7 9.6 May (r) 75.4 49.6 2.0 23.8 7.3 4.4 12.3 9.1 38.6 24.9 17.2 11.3 June (p) 73.3 47.8 2.1 23.5 8.2 4.1 11.4 8.2 35.2 24.1 18.5 11.3 Average RSE (%)1 1 1 6 1 3 3 2 2 1 1 1 2 (p) Preliminary. (r) Revised. RSE Relative standard error. S Does not meet publication standards because tests for identifiable and stable seasonality do not meet reliability standards. X Not applicable. Z Relative standard error is less than 0.5 percent. 1Average RSE for the latest 6-month period. 2Reflects revisions not distributed to months. 3 See the Explanatory Notes in the accompanying text for an explanation of 90% confidence intervals. 4 Computed using unrounded data. Seasonally adjusted annual rate Not seasonally adjusted Midwest South West Period In structures with -- United States Northeast Table 2. New Privately-Owned Housing Units Authorized, but Not Started, at End of Period [Thousands of units. Detail may not add to total because of rounding] 2 to 4 5 units Total 1 unit units or more Total 1 unit Total 1 unit Total 1 unit Total 1 unit 2011: June 84.7 45.5 1.7 37.5 11.7 6.2 5.7 4.5 42.4 23.5 24.9 11.2 July 80.7 43.4 1.9 35.5 8.3 5.8 6.2 4.2 43.2 23.6 23.1 9.8 August 87.4 45.5 2.5 39.4 8.7 5.9 7.8 5.9 46.2 23.6 24.8 10.1 September 79.9 45.0 3.5 31.4 8.9 5.8 7.9 5.9 41.6 23.8 21.5 9.5 October 75.3 42.8 3.0 29.5 8.0 5.6 7.0 4.9 39.9 22.8 20.3 9.4 November 73.8 43.6 3.1 27.1 6.8 4.9 8.9 6.9 39.8 22.4 18.3 9.4 December 78.1 42.3 2.4 33.3 7.8 4.9 6.2 3.9 43.3 23.3 20.9 10.3 2012: January 75.0 39.9 1.6 33.5 8.1 5.0 5.6 3.7 41.4 21.1 20.0 10.1 February 78.7 44.2 1.9 32.6 9.8 5.1 6.7 4.5 41.1 23.5 21.1 11.1 March 87.6 45.2 2.0 40.4 8.4 5.2 8.4 5.2 44.4 23.6 26.4 11.3 April (r) 80.6 44.2 2.0 34.5 8.8 5.1 7.2 5.3 39.9 22.8 24.8 11.1 May (r) 87.9 46.8 1.6 39.5 9.8 5.6 8.1 5.6 44.4 24.4 25.6 11.2 June (p) 88.0 44.8 1.7 41.5 9.6 5.0 8.8 4.8 45.4 23.5 24.1 11.5 Average RSE (%)1 5 6 20 7 17 21 12 14 7 8 12 16 Percent Change: 2 June 2012 from May 2012 0.2% -4.3% 12.3% 5.0% -1.4% -11.6% 8.5% -13.9% 2.4% -3.7% -5.7% 2.7% 90% Confidence Interval 3 ± 7.4 ± 6.5 ± 27.3 ± 12.5 ± 13.2 ± 14.4 ± 12.5 ± 13.2 ± 6.1 ± 7.7 ± 19.4 ± 13.0 June 2012 from June 2011 3.9% -1.5% 0.7% 10.6% -17.3% -20.5% 55.0% 7.6% 7.1% -0.1% -3.2% 2.6% 90% Confidence Interval 3 ± 8.0 ± 10.9 ± 34.2 ± 14.8 ± 23.9 ± 16.9 ± 27.3 ± 20.2 ± 11.7 ± 13.8 ± 15.1 ± 23.5 (p) Preliminary. (r) Revised. RSE Relative standard error. S Does not meet publication standards because tests for identifiable and stable seasonality do not meet reliability standards. 1Average RSE for the latest 6-month period. 2 Computed using unrounded data. 3 See the Explanatory Notes in the accompanying text for an explanation of 90% confidence intervals. Note: These data represent the number of housing units authorized in all months up to and including the last day of the reporting period and not started as of that date without regard to the months of original permit issuance. Cancelled, abandoned, expired, and revoked permits are excluded. Period In structures with -- United States Northeast Not seasonally adjusted Midwest South West Table 3. New Privately-Owned Housing Units Started [Thousands of units. Detail may not add to total because of rounding] 2 to 4 5 units Total 1 unit units or more Total 1 unit Total 1 unit Total 1 unit Total 1 unit 2011: June 615 443 (S) 165 69 38 126 84 286 235 134 86 July 614 429 (S) 176 86 41 91 75 304 225 133 88 August 581 422 (S) 152 56 35 86 51 298 244 141 92 September 647 422 (S) 219 59 41 97 74 329 220 162 87 October 630 439 (S) 175 65 42 110 78 321 234 134 85 November 708 460 (S) 239 98 57 94 70 344 238 172 95 December 697 520 (S) 153 62 44 178 138 328 248 129 90 2012: January 720 511 (S) 193 74 44 106 82 403 290 137 95 February 718 470 (S) 240 66 50 99 87 419 253 134 80 March 706 481 (S) 215 87 45 116 88 354 249 149 99 April (r) 747 504 (S) 234 80 48 125 91 395 265 147 100 May (r) 711 515 (S) 182 63 43 109 87 379 276 160 109 June (p) 760 539 (S) 213 77 54 101 91 363 279 219 115 Average RSE (%)1 6 5 (X) 15 15 14 10 10 7 6 12 9 Percent Change: June 2012 from May 2012 6.9% 4.7% (S) 17.0% 22.2% 25.6% -7.3% 4.6% -4.2% 1.1% 36.9% 5.5% 90% Confidence Interval 2 ± 13.3 ± 10.1 (X) ± 45.6 ± 29.2 ± 44.1 ± 16.9 ± 19.4 ± 14.2 ± 15.0 ± 44.0 ± 17.0 June 2012 from June 2011 23.6% 21.7% (S) 29.1% 11.6% 42.1% -19.8% 8.3% 26.9% 18.7% 63.4% 33.7% 90% Confidence Interval 2 ± 16.8 ± 13.5 (X) ± 45.4 ± 31.9 ± 45.3 ± 11.8 ± 17.8 ± 19.2 ± 16.4 ± 57.9 ± 30.3 2010: 586.9 471.2 11.4 104.3 71.6 52.3 97.9 79.2 297.5 247.1 119.9 92.6 2011: 608.8 430.6 10.9 167.3 67.7 41.2 100.9 74.3 307.8 229.3 132.5 85.7 RSE (%) 1 1 14 3 4 4 2 3 2 2 2 2 2011: Year to Date 289.1 213.1 5.2 70.8 31.6 19.5 46.8 34.7 150.2 116.0 60.5 42.9 2012: Year to Date 365.6 257.7 5.2 102.8 36.5 23.3 52.4 42.0 195.2 139.5 81.5 52.9 RSE (%) 2 2 15 5 4 5 3 3 2 2 4 3 Year to Date Percent Change 3 26.5% 20.9% -0.6% 45.1% 15.3% 19.4% 12.1% 21.1% 30.0% 20.3% 34.7% 23.2% 90% Confidence Interval 2 ± 4.0 ± 3.3 ± 33.5 ± 15.9 ± 9.0 ± 11.9 ± 6.7 ± 5.9 ± 5.9 ± 4.6 ± 11.3 ± 7.2 2011: June 60.5 44.8 0.6 15.2 6.9 4.0 13.2 9.3 27.5 22.8 13.0 8.7 July 57.6 41.0 0.8 15.8 8.0 4.0 9.1 7.7 27.7 20.6 12.7 8.7 August 54.5 39.4 0.6 14.5 5.2 3.2 8.6 5.3 27.2 22.1 13.4 8.8 September 58.8 37.3 0.6 20.9 5.2 3.5 9.5 7.2 29.4 19.0 14.6 7.5 October 53.2 36.2 1.4 15.6 5.8 3.8 10.0 7.2 26.7 19.0 10.6 6.3 November 53.0 32.7 0.7 19.6 7.6 4.2 7.2 5.3 25.7 17.0 12.6 6.3 December 42.7 31.0 1.6 10.1 4.2 3.0 9.7 7.0 20.9 15.6 7.9 5.3 2012: January 47.2 33.1 1.1 13.0 4.6 2.6 5.3 3.7 28.4 20.7 9.0 6.1 February 49.7 32.2 0.6 16.9 3.8 2.7 5.0 4.1 31.1 19.5 9.8 5.9 March 58.0 40.2 0.8 17.1 7.0 3.7 8.4 6.1 30.2 21.8 12.4 8.5 April (r) 66.8 46.6 0.7 19.5 7.1 4.4 11.3 8.5 35.0 24.2 13.4 9.5 May (r) 68.3 50.2 1.3 16.9 6.2 4.3 11.6 9.6 34.6 25.1 15.8 11.1 June (p) 75.6 55.4 0.7 19.4 7.8 5.7 10.9 10.0 35.8 28.1 21.1 11.6 Average RSE (%)1 6 5 29 15 15 14 10 10 7 6 12 9 (p) Preliminary. (r) Revised. RSE Relative standard error. S Does not meet publication standards because tests for identifiable and stable seasonality do not meet reliability standards. X Not applicable. 1Average RSE for the latest 6-month period. 2 See the Explanatory Notes in the accompanying text for an explanation of 90% confidence intervals. 3 Computed using unrounded data. Period In structures with -- United States Northeast Seasonally adjusted annual rate Not seasonally adjusted Midwest South West Table 4. New Privately-Owned Housing Units Under Construction at End of Period [Thousands of units. Detail may not add to total because of rounding] 2 to 4 5 units Total 1 unit units or more Total 1 unit Total 1 unit Total 1 unit Total 1 unit 2011: June 418 246 (S) 162 93 35 67 46 170 114 88 51 July 418 243 (S) 165 95 35 66 46 166 110 91 52 August 413 239 (S) 164 94 33 62 44 166 111 91 51 September 418 238 (S) 171 91 34 63 44 169 110 95 50 October 423 237 (S) 176 88 34 65 44 172 109 98 50 November 432 236 (S) 186 92 35 65 43 174 109 101 49 December 434 236 (S) 188 91 35 68 46 174 107 101 48 2012: January 443 241 (S) 191 90 36 69 46 182 111 102 48 February 450 243 (S) 196 89 37 70 47 188 111 103 48 March 459 245 (S) 204 90 37 69 47 191 111 109 50 April (r) 464 247 (S) 207 89 37 70 47 197 113 108 50 May (r) 472 251 (S) 211 88 36 72 48 202 115 110 52 June (p) 482 256 (S) 216 88 36 71 48 206 118 117 54 Average RSE (%)1 2 3 (X) 4 6 8 6 7 4 4 4 8 Percent Change: June 2012 from May 2012 2.1% 2.0% (S) 2.4% 0.0% 0.0% -1.4% 0.0% 2.0% 2.6% 6.4% 3.8% 90% Confidence Interval 2 ± 1.7 ± 1.6 (X) ± 3.0 ± 3.1 ± 4.4 ± 2.5 ± 3.7 ± 2.3 ± 2.4 ± 5.1 ± 3.0 June 2012 from June 2011 15.3% 4.1% (S) 33.3% -5.4% 2.9% 6.0% 4.3% 21.2% 3.5% 33.0% 5.9% 90% Confidence Interval 2 ± 4.1 ± 4.3 (X) ± 10.2 ± 7.5 ± 7.2 ± 9.8 ± 13.0 ± 5.0 ± 5.6 ± 7.3 ± 5.5 2011: June 426.2 253.4 10.2 162.6 93.9 35.8 68.7 47.5 174.5 117.8 89.1 52.4 July 428.7 253.9 9.9 164.9 96.5 36.0 68.5 48.8 170.8 114.8 92.9 54.3 August 424.7 250.6 9.8 164.3 94.8 34.4 65.2 46.8 170.8 115.5 93.9 53.9 September 429.1 248.2 9.3 171.7 92.1 34.7 66.3 47.3 172.7 113.8 98.0 52.4 October 429.5 241.6 9.8 178.2 89.9 35.0 67.7 46.3 173.4 109.9 98.5 50.3 November 433.3 234.9 9.9 188.5 93.6 35.3 66.2 44.2 172.9 107.4 100.7 48.1 December 417.7 221.6 10.3 185.9 89.6 34.1 66.1 44.1 165.1 99.1 96.9 44.4 2012: January 426.8 227.7 10.4 188.7 87.7 34.6 66.1 43.4 174.0 104.2 99.0 45.4 February 435.1 230.2 10.5 194.4 86.1 34.9 65.3 42.6 182.6 106.4 101.0 46.2 March 449.3 236.5 10.2 202.6 88.7 35.5 64.8 43.3 189.4 109.6 106.4 48.0 April (r) 462.1 245.0 10.4 206.6 88.7 36.6 68.0 45.1 197.6 113.7 107.9 49.6 May (r) 475.3 254.1 10.3 210.9 87.9 36.3 71.2 47.3 205.0 117.7 111.1 52.8 June (p) 491.4 264.9 9.6 216.9 88.6 36.4 73.4 50.4 210.5 122.2 119.0 55.9 Average RSE (%)1 2 3 12 4 6 8 6 7 4 4 4 8 (p) Preliminary. (r) Revised. RSE Relative standard error. S Does not meet publication standards because tests for identifiable and stable seasonality do not meet reliability standards. X Not applicable. 1Average RSE for the latest 6-month period. 2 See the Explanatory Notes in the accompanying text for an explanation of 90% confidence intervals. Seasonally adjusted Not seasonally adjusted Midwest South West Period In structures with -- United States Northeast Table 5. New Privately-Owned Housing Units Completed [Thousands of units. Detail may not add to total because of rounding] 2 to 4 5 units Total 1 unit units or more Total 1 unit Total 1 unit Total 1 unit Total 1 unit 2011: June 580 454 (S) 110 84 49 113 75 283 246 100 84 July 634 483 (S) 142 66 48 116 79 351 273 101 83 August 617 478 (S) 135 65 50 123 80 294 242 135 106 September 600 424 (S) 166 97 32 91 67 299 235 113 90 October 578 445 (S) 126 89 36 94 82 284 238 111 89 November 583 455 (S) 123 51 42 95 76 313 233 124 104 December 606 460 (S) 137 79 39 105 78 297 245 125 98 2012: January 542 394 (S) 140 89 37 87 65 275 220 91 72 February 572 432 (S) 136 79 40 97 79 283 229 113 84 March 587 440 (S) 136 71 44 121 79 284 227 111 90 April (r) 663 490 (S) 170 80 44 106 90 325 246 152 110 May (r) 606 464 (S) 126 79 48 103 86 299 245 125 85 June (p) 622 470 (S) 134 71 53 107 71 321 253 123 93 Average RSE (%)1 6 6 (X) 16 19 17 11 13 9 9 12 12 Percent Change: June 2012 from May 2012 2.6% 1.3% (S) 6.3% -10.1% 10.4% 3.9% -17.4% 7.4% 3.3% -1.6% 9.4% 90% Confidence Interval 2 ± 12.5 ± 9.8 (X) ± 46.3 ± 45.7 ± 32.0 ± 27.3 ± 19.9 ± 15.5 ± 16.4 ± 27.6 ± 16.7 June 2012 from June 2011 7.2% 3.5% (S) 21.8% -15.5% 8.2% -5.3% -5.3% 13.4% 2.8% 23.0% 10.7% 90% Confidence Interval 2 ± 13.2 ± 12.3 (X) ± 44.0 ± 40.0 ± 38.6 ± 16.1 ± 25.6 ± 22.8 ± 18.1 ± 24.0 ± 22.7 2010: 651.7 496.3 8.9 146.5 80.4 54.0 106.9 81.9 316.7 257.6 147.7 102.8 2011: 584.9 446.6 8.4 129.9 72.5 44.0 103.0 75.9 295.5 235.6 113.9 91.2 RSE (%) 2 2 18 7 5 4 3 3 3 3 3 3 2011: Year to Date 258.9 199.0 4.5 55.3 31.4 20.8 45.0 33.0 132.3 105.3 50.2 39.9 2012: Year to Date 277.7 207.5 4.8 65.3 35.8 20.4 46.6 34.8 139.7 110.9 55.6 41.4 RSE (%) 3 3 22 7 8 8 5 5 4 4 5 5 Year to Date Percent Change 3 7.3% 4.3% 6.4% 18.1% 13.8% -2.0% 3.6% 5.5% 5.6% 5.3% 10.9% 3.7% 90% Confidence Interval 2 ± 6.8 ± 6.3 ± 45.4 ± 20.6 ± 19.9 ± 17.7 ± 10.8 ± 12.9 ± 10.2 ± 8.8 ± 10.6 ± 8.5 2011: June 50.5 39.7 1.4 9.4 7.5 4.5 9.6 6.3 24.6 21.4 8.8 7.4 July 53.6 40.2 0.8 12.6 5.8 4.2 9.7 6.4 29.6 22.7 8.5 6.9 August 57.3 42.1 0.5 14.7 6.3 4.6 11.8 7.1 26.9 21.1 12.4 9.3 September 54.7 38.4 0.9 15.3 8.9 2.9 8.6 6.4 26.5 20.6 10.7 8.6 October 52.1 41.3 0.5 10.3 7.7 3.4 9.0 8.0 25.6 21.9 9.8 8.0 November 50.1 40.7 0.4 9.0 4.7 4.1 8.8 7.5 26.0 20.1 10.5 9.1 December 58.3 44.8 0.8 12.6 7.8 4.0 10.0 7.6 28.6 23.8 11.9 9.4 2012: January 36.4 26.0 0.6 9.8 5.8 2.2 5.8 4.3 18.8 14.9 6.0 4.7 February 39.0 29.4 0.3 9.3 5.3 2.6 6.4 5.2 19.9 16.2 7.4 5.4 March 44.4 33.6 0.8 9.9 4.8 2.9 8.4 5.3 22.1 17.9 9.1 7.6 April (r) 52.3 37.6 0.3 14.5 6.1 3.0 8.3 6.9 26.1 19.4 11.9 8.3 May (r) 50.1 38.8 1.3 9.9 6.7 4.3 8.5 7.2 24.5 20.2 10.4 7.2 June (p) 55.5 42.0 1.6 11.9 7.0 5.5 9.2 6.0 28.4 22.3 10.9 8.3 Average RSE (%)1 6 6 43 16 19 17 11 13 9 9 12 12 (p) Prelminary. (r) Revised. RSE Relative standard error. S Does not meet publication standards because tests for identifiable and stable seasonality do not meet reliability standards. X Not applicable. 1Average RSE for the latest 6-month period. 2 See the Explanatory Notes in the accompanying text for an explanation of 90% confidence intervals. 3 Computed using unrounded data. Seasonally adjusted annual rate Not seasonally adjusted Midwest South West Period In structures with -- United States Northeast As always ... Keep the faith! Roger A. Sulllivan ~ Roger@RogerASullivan.com ~ Roger@ShortSaleSully.com

Prequalified or PreApproved !!!

With the low inventory levels in the Coachella Valley and multiple offers becoming more commonplace, buyers who want any chance in the bidding process need to provide a mortgage prequalification or preapproval ... and this should be applied for prior to looking at homes or engaging your Real Estate agent. Here in the Valley, most offers won't even be considered without one or the other. The low inventory we are experiencing makes timing a top priority to have any chance at having your offer accepted. Should you elect to search for property prior to meeting with a Lender(s), it is inevitable that you will come across the home that is ideal for you and the family and one of three things can happen: A) Every other Buyer and Agent at that price point has fallen asleep and you have your offer received because you have plenty of time to comply with paragraph 3.H.1 of the CAR 'California Association of Realtors" California Residential Purchase Agreement "(1) loan Applications: Within 7 (or ___ days after acceptance. Buyer shall Deliver to Seller a letter from lender or loan broker stating that, based on a review of Buyer's written application and credit report, Buyer is prequalified or preapproved for any NEW loan specified in 3C above. (If checked, letter attached." B) You will come across the home that is ideal for you and the family and the Seller accepts an offer from someone else because they won’t know if you are creditworthy and why would they risk taking their home off the market for someone who is not credit worthy; and C) You will come across the home that is ideal for you and the family and after submitting all the required the documentation to the Lender, you discover that it is $5,000 the maxim you can qualify for. Each of these examples is intended to stress the necessity of identifying that the prequalification or preapproval is one of the most important steps in the process of home buying in the 2012 marketplace. Now, prequalified or preapproved? The difference is significant. Prequalifying for a mortgage is based solely on what you disclose to the loan officer or broker about your earnings, credit score and total assets, including what is available for a down payment. Prequalification can be accomplished on the phone, online or written as it doesn’t normally investigate all of the criteria that is required to issue a preapproval letter; and so, the prequalification letter normally states … Congratulations, based upon the information received, you qualify for a loan of $ xxx,xxx.xx at market rate. Please contact me when you have located a property. A preapproval, by contrast, requires borrowers to provide documentation of their income and their assets. The lender typically pulls your credit report and score and you submit nearly everything you will need for the actual mortgage underwriting: recent pay stubs & bank statements; Investment Account statements, including any/all pension; W-2’s; last 2 years tax statements, 1099’s and any other assets that could show you have the resources to buy and maintain a home. Some lenders treat preapprovals as an opinion on the person’s ability to borrow, not a guarantee to lend while a few actually issue what constitutes a commitment. Generally, borrowers need to have chosen a property and have it appraised before they can expect a firm commitment from a lender. Preapproval carries more weight when you go to negotiate a deal. It tells the Seller that you can take your property off the market in confidence because as long as we complete our contract requirements, I have the ability to obtain financing to buy your home. I will not waste your time nor cause you to lose another Buyer. Borrowers should ask the lender to provide a good-faith estimate on closing costs and fees along with the preapproval. Many will provide this only once you have a home under contract, but some will give you an estimate of those costs, said Sofi Cordero, a senior housing counselor with La Casa De Don Pedro, which works on affordable housing and neighborhood development in Newark. The preapproval letter should include the amount a borrower is qualified to borrow, as well as the interest rate the prequalification was calculated at; in addition, it should always include the loan officer’s contact information. Some letters may have an estimated monthly payment, however this is not as important as the loan term and the loan type i.e. Conventional, FHA, VA etc... If you receive a preapproval letter however can’t locate an acceptable property for some time, stay engaged with your Loan Officer. Provide them with update paystubs and bank statements so that they can update your preapproval letter. Make sure the preapproval letter specifically states the property address you are making an offer on and do not expect a letter to serve for more than one property. This is more important than you realize. It makes one think that it’s more of a prequalification than a preapproval. Give yourself the best chance – stay engaged with the process. As always – Keep the faith!