Archive for November 3rd, 2013

Sabal Names Longtime Lehman Brothers Vet as Managing Director

Sabal Names Longtime Lehman Brothers Vet as Managing Director

BY: TORY BARRINGER

Sabal Financial Group, L.P., a privately held diversified financial services firm that specializes in real estate, lending, and banking, appointed Marguerite Brogan as managing director.

From her post in New York, Brogan will manage Sabal’s business development efforts and assist with its commercial real estate loan transaction services businesses, growing Sabal’s loan origination underwriting and re-underwriting platform.

“Midge Brogan’s new role underscores our commitment to expand key growth businesses for Sabal Financial Group,” said founder and CEO Pat Jackson.

“Midge’s national and international experience in finance and real estate parallels our businesses and growth targets and her long-term relationships in the region are demonstrated in her recognizable track record, making her an ideal fit for Sabal,” Jackson added.

Brogan joins Sabal from Park Praedium, an independent real estate advisory firm she founded and led. Prior to that, she spent a significant span of her career at Lehman Brothers, most recently working as a managing director in the firm’s Global Real Estate Group.

During her tenure there, she was directly responsible for more than $5 billion in origination of senior debt, mezzanine debt, equity investments, and the acquisition of third-party loans.

She also served as co-head of Lehman Brothers Bank Capital Crossing Division, where she was responsible for a $1 billion portfolio of small balance commercial real estate loans.

2013
11/03
CATEGORY
Real Estate
TAGS





Leave a comment

What Does Fannie Mae’s New LTV Threshold Accomplish?

What Does Fannie Mae’s New LTV Threshold Accomplish?

BY: KRISTA FRANKS BROCK

As of November 1, Fannie Mae is no longer purchasing loans without minimum down payments of at least 5 percent. Industry experts with the Urban Institute’s Housing Finance Policy Center argue this move is arbitrary and likely to provide little benefit to the GSE or to taxpayers.

Fannie Mae’s decision to lower its maximum threshold for loan-to-value (LTV) ratios from 97 percent to 95 percent follows a similar decision by Freddie Mac a few years ago. While neither GSE will support loans with LTVs higher than 95 percent now, the Federal Housing Administration,Veterans Administration, and U.S. Department of Agriculture (USDA) will.

“Fannie’s policy change isn’t limiting taxpayer risk-rather it’s limiting options for borrowers,” according to Laurie Goodman and Taz George of the Housing Finance Policy Center.

In a blog post on the Urban Institute’s Metro Trends Blog site, Goodman and George said, “This change places yet another barrier in front of low- and moderate-income families, who are already facing a tightening credit box.”

While it would seem Fannie’s objective in lowering the LTV requirement would be to reduce risk, the two authors say this action would be a misguided attempt. They say, “If the intent was to reduce risk, this was a crude way to accomplish it,” mainly because among loans with LTVs of 80 percent or higher, credit scores are a better default forecaster than LTV ratios.

In fact, the default rate on loans with LTVs of 95 to 97 percent and high FICO scores is lower than the default rate for loans with LTVs of 90 to 95 percent and lower FICOscores, according to the Urban Institute.

Goodman and George also point out that historically, Fannie Mae has purchased very few loans with LTVs in the 95 to 97 percent range. From 1999 to 2012, these loans made up less than 1 percent of Fannie Mae’s purchases, and since 2005, the percentage drops even further.

“We would have hoped that the rich data provided by the Great Recession would give the GSEs the confidence to underwrite higher LTV loans with compensating factors, as the importance of these factors has been well tested and documented,” Goodman and George stated.

“Instead, Fannie Mae has chosen to draw sharp lines around a smaller permissible credit box without accounting for compensating factors,” they concluded.

2013
11/03
CATEGORY
Housing FInance
TAGS








Leave a comment

Half of Consumers Fear Another Housing Bubble Is Forming

Half of Consumers Fear Another Housing Bubble Is Forming

11/01/2013 BY: KRISTA FRANKS

While many indicators suggest the housing market is on the road to recovery, some fear another bubble is already forming. Country Financial, a financial services company based in Bloomington, Illinois, found in a recent survey that 48 percent of Americans say the market could reach “bubble” status within the next two years.

The Country Financial survey also found varying financial obstacles across the generations of Americans in the housing market.

While nearly half of Americans say we may be headed toward another bubble, only 6 percent say the housing market is their top economic concern at the moment, according to Country Financial.

The housing market ranks in the top three economic concerns for about 25 percent of Americans, according to Country Financial.

“Perhaps the government shutdown and debt ceiling are eclipsing just how concerned Americans are about the housing market right now, but with home prices up 12.4 percent in the last year alone, concerns for an ‘echo bubble’ of the housing market collapse certainly make sense,” said Troy Frerichs, director of investments and wealth management at Country Financial.

Meanwhile, Zillow this week dismissed bubble fears, finding home value appreciation fell off over the past three months.

Bubble or no bubble, many Americans continue to suffer financial burdens that impede them from homeownership, and according to Country Financial, “the obstacle that tops the list for each generation is different.”

Generation Y and those headed for retirement—between the ages of 50 and 64—in the next few years tend to lack the cash for a down payment.

Those ages 40 to 49 cite job security as their greatest obstacle to owning a home.

Lastly, debt is the biggest barrier for those in their 30s, according to the Country Financial survey.

About 41 percent of Americans think a middle-income family can afford a home in today’s market.

Of those who do own a home, about 27 percent say they will not have their mortgage paid off when they retire. The rate is even higher—37 percent—among those nearing retirement age—50 to 64, according to the survey.

2013
11/03
CATEGORY
Homeowners
Housing Market
TAGS





Leave a comment