Multi-million dollar foreclosures

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Asking price: $18 million

Located in "the Gold Coast of Orange County," this impressive home with views of Catalina Island and the Pacific Ocean fell into foreclosure in 2010, the same year it was built. At one time, it was in escrow for $28 million. Now, the home is available through a private investment group for $18 million. It has never been occupied.
The house has an oversized master suite and 3 additional bedrooms, 6 1/2 bathrooms and a garage that can accommodate 20 cars. The kitchen is outfitted with high-end stainless steel appliances, granite counter tops and a butler's pantry. There's also a screening room and an atrium foyer. Elsewhere on the 11-acre property, are an infinity edge pool, spa, gardens and a fire pit.
"A home of this size on a parcel of land over 11 acres in this area is unheard of," noted the listing broker Richard Leavitt. "It could never be built again."

Fannie, Freddie legal fees: $110 million and counting

Taxpayers continue to pay legal fees at Fannie Mae and Freddie Mac.
WASHINGTON (CNNMoney) -- A watchdog agency said Wednesday that the legal tab for former leaders of mortgage finance giants Fannie Mae and Freddie Mac is at least $110 million.
And taxpayers have paid at least $47 million of it, according to an Office of Inspector General of the Federal Housing Finance Agency report.

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And the total bill could be even higher since the inspector general report focused on only one particular legal case against Fannie Mae, and isn't an exhaustive account of the housing giants' legal bills, reportedly more than $160 million, according to a 2011 congressional hearing.
Yet, a whopping $99.4 million has been paid in legal bills to defend a 2004 case against three former Fannie Mae senior executives accused of inflating the firm's publicly traded stock price to maximize their own bonuses. About $37 million of that has been picked up by the taxpayer.
For Freddie Mac, the overall legal tab paid by the taxpayers is $10 million, according to inspector general.
The Federal Housing Finance Agency inherited legal bills when it took Fannie Mae and Freddie Mac under conservatorship in 2008. The bills are for employees long gone but must be paid as a part of benefits packages agreed to by legal contract.
Office of Inspector General of the Federal Housing Finance Agency suggested that the housing agency take steps to limit legal expenses, in the report.
With taxpayer bailouts to the housing finance giants hitting $183 billion through the end of December, lawmakers have questioned the "appropriateness" of legal pay outs, the watchdog said.
"Given the significant amounts of taxpayer money involved and the issue's high visibility, FHFA must continue to scrutinize intensively the enterprises' advances in order to limit costs," the report concluded.

0:00 / 2:30 Outrage over Fannie and Freddie bonuses

The two companies were essentially taken over by the government in September 2008 when they were placed in conservatorship and given large cash infusions to cover mounting losses on the mortgages they owned and guaranteed.
Other efforts, such as the biggest source of money for the bailouts: the Troubled Assets Relief Program (TARP), had a larger initial price tag but the overwhelming majority of the $474.8 billion it gave out has been returned to Treasury.
Tougher lending standards have allowed the mortgage financiers to profit from more recent loans they purchased, even if they continue to suffer losses on loans made during the housing bubble. The two firms are now financing about two thirds of the mortgages being written in the United States.
In response to the inspector general report, the Federal Housing Finance Agency said it agreed with the watchdog's suggestions about efforts to limit future legal fees, according to a response to the review by FHFA attorney Alfred Pollard.
The report noted that more legal bills are coming down the road, since the U.S. Securities and Exchange Commission just filed a lawsuit against six former senior officers at Fannie Mae and Freddie Mac

Remodeling Improvements That Entice Buye

Over the last few years, some homeowners have opted to stay put for the time being and that's caused them to consider remodeling instead of moving. But most homeowners know that one day they might need or want to sell their home so which remodels help to add value and entice buyers?

There are a few areas that are better than others to improve. It's pretty easy to understand why these home remodels are enticing buyers when you consider the way the housing market has been for the past several years.
Here are a few of the renovations that are adding value to homes and creating appeal from home buyers.
Aging in Place
With the tough economic times, more short sales and foreclosures, extended families are combining homes and reducing their cost of living by residing together in one larger house. The National Association of Home Builders found that 62 percent of builders in a survey were working on home projects that were helping families "age in place". Included in these types of remodels are placing a bedroom on the entry-level of a home, wider doorways that would accommodate a wheelchair, and overall modifications for the elderly including reducing steps outside and inside.
At one time, these designs might have been unattractive but with many Americans wanting to "age in place" and extended families living together, remodels like these are becoming common, necessary, and valued.
Savvy Kitchen
The great rooms that bring the kitchen and the eating areas together are still popular. More space is preferred so families can have room to sit and spend time together over a meal even if that means having less space to actually prepare the food. Cabinets and shelving are being customized to suit the homeowners' needs and many are favoring pantries or utility rooms. Kitchens are taking on the look of a chef's cooking space with open shelving and islands to help homeowners be able to quickly prepare meals and still mingle with guests and family.
Totally Wired
Fast-placed, busy buyers who often work from home will find smart homes that are wired and built to handle all the high-technology needs a huge plus when it comes time to market and sell their homes. Another plus is having space-saving workstations in the home. Remodeled homes that feature floor-to-ceiling bookcases and wiring for home offices are increasingly becoming the norm in many homes.
Outdoor Living
This continues to be a popular trend to bring the outside in. Making the most of living spaces, even those in the garage and outside, is a huge benefit. Homeowners are capitalizing on all possible livable space by creating outdoor living rooms complete with wiring for entertainment, cooking, and relaxing. Outdoor furniture is also being featured inside as well as outside the home, blending the line between the two.
According to the Census Bureau, 2011 home starts were bigger and featured more amenities than in the previous year. It seems houses are growing again. The average new-home's square footage is was 2,522 in 2011, up from 2,381 square feet.
Not all remodels add value to the home. The balance of achieving what you like in a home and which improvements can potentially increase the sale of your home, can allow you to make smart home improvement choices.

Average 30-Year Fixed-Rate Mortgage Up From All-Time Record Low

In Freddie Mac's results of its Primary Mortgage Market Survey® (PMMS®), fixed mortgage rates moved off their at- or-near record lows for the first time in three weeks amid recent data showing the housing market continues to improve. 

30-year fixed-rate mortgage (FRM) averaged 3.95 percent with an average 0.8 point for the week ending February 23, 2012, up from last week when it also averaged 3.87 percent. Last year at this time, the 30-year FRM averaged 4.95 percent. 

15-year FRM this week averaged 3.19 percent with an average 0.8 point, up from last week when it also averaged 3.16 percent. A year ago at this time, the 15-year FRM averaged 4.22 percent. 

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week, with an average 0.7 point, down from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 3.80 percent.

1-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.6 point, down from last week when it averaged 2.84 percent. At this time last year, the 1-year ARM averaged 3.40 percent.   According to Frank Nothaft, vice president and chief economist, Freddie Mac:
"New data releases this week suggest the housing market is continuing to gradually improve. Loans that were seriously delinquent (90 days or more past due plus the foreclosure inventory) fell to 5.3 percent of prime mortgages at the end of 2011, representing the lowest quarterly share since the start of 2009, according to the Mortgage Bankers Association. The Census Bureau reported new residential construction starts in January outpaced the market consensus forecast, led by condominiums and apartment buildings, and December's figures had upward revisions. Finally, existing home sales were at the strongest pace in January since May 2010, according to the National Association of Realtors®"

U.S. Hotel Market Reports Performance Increases in January

According to STR, the U.S. hotel industry in January reported increases in all three key performance metrics.

Overall, the U.S. hotel industry's occupancy rose 4.1 percent to 49.4 percent, its average daily rate was up 3.9 percent to US$100.74 and its revenue per available room increased 8.1 percent to US$49.78.

"Even with tougher comparisons to start the year, January demand for hotel rooms was impressive," said Amanda Hite, president of STR. "The lack of new hotel rooms (supply) also remains favorable. We expect the first quarter to provide a good bellwether for overall industry performance in 2012."

Among the  Top 25 markets, Chicago, Illinois, rose 15.4 percent in occupancy to 47.4 percent, posting the largest increase in that metric, followed by Nashville, Tennessee (+11.2 percent to 51.2 percent), and Anaheim-Santa Ana, California (+10.0 percent to 62.5 percent). Phoenix, Arizona, fell 5.9 percent in occupancy to 58.7 percent, reporting the largest decrease in that metric.

Three markets experienced double-digit ADR increases: New Orleans, Louisiana (+24.1 percent to US$145.16); Oahu Island, Hawaii (+10.7 percent to US$181.42); and San Francisco/San Mateo (+10.4 percent to US$157.48). Two markets reported ADR decreases for the week: New York, New York (-3.1 percent to US$188.05), and Washington, D.C. (-2.0 percent to US$129.65).

Four markets achieved RevPAR increases of more than 15 percent: New Orleans (+32.1 percent to US$87.57); Chicago (+24.3 percent to US$46.39); Oahu Island (+18.9 percent to US$157.88); and Miami-Hialeah, Florida (+15.8 percent to US$148.71). Phoenix (-4.8 percent to US$69.62) and Washington, D.C. (-3.1 percent to US$62.99) reported the only RevPAR decreases for the month.

Long-Term Mortgage Rates Uptick as U.S. Housing Market Improves

Based on Freddie Mac's latest Primary Mortgage Market Survey (PMMS) released this week, fixed mortgage rates moved off their at- or-near record lows for the first time in three weeks amid recent data showing the housing market continues to improve.

Freddie Mac's chief economist Frank Nothaft said, "New data releases this week suggest the housing market is continuing to gradually improve. Loans that were seriously delinquent (90 days or more past due plus the foreclosure inventory) fell to 5.3 percent of prime mortgages at the end of 2011, representing the lowest quarterly share since the start of 2009, according to the Mortgage Bankers Association."

Nothaft further stated, "The Census Bureau reported new residential construction starts in January outpaced the market consensus forecast, led by condominiums and apartment buildings, and December's figures had upward revisions. Finally, existing home sales were at the strongest pace in January since May 2010, according to the National Association of Realtors"

The 30-year fixed-rate mortgage (FRM) averaged 3.95 percent with an average 0.8 point for the week ending February 23, 2012, up from last week when it also averaged 3.87 percent. Last year at this time, the 30-year FRM averaged 4.95 percent.

15-year FRM this week averaged 3.19 percent with an average 0.8 point, up from last week when it also averaged 3.16 percent. A year ago at this time, the 15-year FRM averaged 4.22 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week, with an average 0.7 point, down from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 3.80 percent.

1-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.6 point, down from last week when it averaged 2.84 percent. At this time last year, the 1-year ARM averaged 3.40 percent.

Mortgage Interest Rate Report - January

Mortgage Rate News & Analysis

Long-term interest rates moved back down into record low territory in January as mixed economic data continued to push down bond rates, according to data from mortgage finance company Freddie Mac.

January 5

During the first week of the new year, the average rate on a 30-year fixed rate mortgage (FRM) fell to 3.91 percent, excluding points, from 3.95 percent the week before. The average on a 15-year FRM slipped to 3.23 percent from 3.24 percent, and the one-year adjustable rate mortgage (ARM) carried an average rate of 2.80 percent, up from 2.76 percent the previous week.

January 12

The next weeks, rates again dipped to a new all-time record low, with the 30-year FRM averaging 3.89 percent, the 15-year FRM sinking to 3.16 percent and the one-year ARM falling to 2.76 percent.
"Mortgage rates eased slightly this week to all-time record lows following mixed indicators in the labor market," said Freddie Mac vice president and chief economist Frank Nothaft. "Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated."

January 19

During the third week, rates fell even lower. The average rate on a 30-year FRM inched down to 3.88 percent, but the 15-year FRM moved up slightly to 3.17 percent. The one-year ARM also fell, to 2.74 percent.
Nothaft commented, "Mortgage rates were nearly unchanged this holiday week in lieu of a mixed bag of economic data reports. "

January 26

The month ended with a jump up in rates, although still under an historically low 4 percent. The 30-year FRM reached back up to 3.98 percent, the 15-year FRM climbed to 3.24 percent, and the one-year ARM was unchanged at 2.74 percent.

What's Next for Interest Rates?

While the economy slowly makes its way up the recovery hill, there is little in February predicted to make waves in mortgage interest rates. Rates will likely hover right around 4 percent for the month and slowly average above 4 percent in the coming months.

U.S. Hotel Market Performing Well in Early February

According to STR, the U.S. hotel industry experienced increases in all three key performance metrics during the week ending February 11, 2012.

In year-over-year comparisons for the week, occupancy was up 2.6 percent to 55.9 percent, average daily rate increased 3.8 percent to US$102.01 and revenue per available room was up 6.5 percent to US$57.00.

Among the Top 25 Markets, San Francisco/San Mateo, California, experienced the largest occupancy increase, rising 17.3 percent to 80.9 percent, followed by Houston, Texas, with an 11.0-percent increase to 68.5 percent. Anaheim-Santa Ana, California, fell 6.2 percent in occupancy to 63.9 percent, followed by New Orleans, Louisiana, with a 5.8-percent decrease to 67.9 percent.

San Francisco/San Mateo jumped 40.4 percent in ADR to US$205.37, achieving the largest increase in that metric. Dallas, Texas, was the only market to report a double-digit ADR decrease, falling 15.4 percent to US$94.25.

San Francisco/San Mateo increased 64.7 percent in RevPAR to US$166.12, reporting the largest increase in that metric, followed by Houston (+18.6 percent to US$67.44) and Chicago, Illinois (+14.2 percent to US$54.03). Dallas ended the week with the largest RevPAR decrease, falling 17.9 percent to US$56.85, followed by New Orleans with a 9.9-percent decrease to US$88.62.