American Bankers Association Expects to See Economic Growth in Coming Year

Today’s News Synopsis:

Aaron Norris of the Norris Group gives the news of the week in this week’s real estate headline roundup video.  Consumer sentiment is at its highest in ten years with the decrease in gas prices.  REITs are helping more borrowers who are having a hard time getting a home loan.  The American Bankers Association said they expect the US economy to grow 3% compared to 2.5% last year.

In The News:

OC Housing News – “Lingering debt from the housing bust weakened the economy” (1-16-15)

“The US economy is generally very resilient. There are always bearish prognosticators concocting doomsday scenarios that never come to pass.”

Bloomberg – “U.S. Companies’ REIT Love Affairs Seen Breaking Investor Hearts” (1-16-15)

“Forest City Enterprises Inc. (FCE/A), Windstream Holdings Inc. (WIN), and Sears Holdings Corp. (SHLD) shares surged and trading volume jumped on the days they announced plans to create real estate investment trusts.  Such investor enthusiasm for REITs is helping persuade more companies to convert, or spin off their property into trusts, including some that have little in common with traditional types of real estate.”

Housing Wire – “Bankers: Optimistic about economy, housing in 2015” (1-16-15)

“The U.S. economy will grow nearly 3% on an inflation-adjusted basis this year compared to 2.5% last year, according to the Economic Advisory Committee of the American Bankers Association.”

Mortgage Professional America – “Is the CFPB’s new tool setting up the mortgage industry to fail?” (1-16-15)

“The launch of the Consumer Financial Protection Bureau’s (CFPB)  “Owning a Home” tool has caused uproar in the mortgage industry, and many claim the tool contradicts rules the regulator has already in place.”

DS News – “Fueled by Lower Gas Prices, Consumer Sentiment Reaches Highest Level in a Decade” (1-16-15)

“American consumers are heading into 2015 feeling good about their economic prospects, according to a preliminary confidence measure.”

Bloomberg – “REITs Emerge as Saviors for Misfit American Borrowers” (1-16-15)

“Borrowers struggling to get home loans are catching a break from an unfamiliar benefactor.  Mortgage-focused real estate investment trusts, including those affiliated with Western Asset Management Co. and Pine River Capital Management LP, are backing loans to Americans who don’t meet banks’ requirements.”

Housing Wire – “Moody’s: FHA premium cut a credit positive for HFAs” (1-16-15)

“Last week the White House directed the Federal Housing Administration to reduce annual mortgage insurance premiums by 50 basis points, from 1.35% to 0.85%, and now Moody’s Investors Service says it will be a positive for Housing Finance Agencies.”