FREDDIE MAC NOW PERMITS UP TO 12 MONTHS FORBEARANCE TO UNEMPLOYED BORROWERS

MCLEAN, Va., Jan. 6, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today announced it is giving mortgage servicers expanded authority to provide six months of forbearance to unemployed borrowers without Freddie Mac's prior approval and up to an additional six months with prior approval.   This means unemployed borrowers may be eligible for up to 12 months of forbearance.  Freddie Mac's forbearance options are being expanded at the direction of the Federal Housing Finance Agency and will take effect on February 1, 2012.

News Facts:

• Mortgage servicers can now approve unemployed borrowers with Freddie Mac owned- or guaranteed-loans for six months of forbearance without prior approval from Freddie Mac.
• Servicers can extend the forbearance period up to an additional six months with prior Freddie Mac approval, giving eligible unemployed borrowers with Freddie Mac owned- or guaranteed-mortgages up to one year of forbearance.
• The expanded forbearance options will take effect on February 1, 2012.
• Delinquent borrowers in an existing short term forbearance plan can be evaluated for an extended forbearance under the new policy.
• Previously Freddie Mac allowed servicers to grant up to three months of forbearance with no payment and without prior approval, or six months at a reduced payment with prior approval.  Longer forbearance required prior approval and was generally restricted to events such as natural disasters, permanent disability or long-term medical emergencies.
• According to the latest statistics, nearly 10 percent of delinquencies on Freddie Mac mortgages were tied to unemployment. 

Quote:
Attribute to Tracy Mooney, Senior Vice President, Single-Family Servicing and REO, Freddie Mac: "These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies.  We believe this will put more families back on track to successful long-term homeownership." 

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.  For more information, visit www.FreddieMac.com

THE CHINESE NEW YEAR vs. THE FENG SHUI NEW YEAR

The Chinese New Year...4710.. begins on Jan. 23, 2012..!

The Chinese New Year is the longest and most important holiday in China - lasting 15 days! It's similar to Christmas .. as it's a time of gift giving and feasting with family and friends. Traditionally is a time of house cleaning and saying good-bye to things that no longer serve us, and the perfect time to welcome in a new year of PROSPERITY, HEALTH, HAPPINESS and GOOD FORTUNE.

Here are a few "traditional" things (several) Asian cultures do prior to and during the celebration days:

BEFORE NEW YEARS EVE
• Space clear and clean the house of sorrows, failures and defeats of the prior year by washing windows, carpets, cupboards and floors.
• Pay off all debts.
• Resolve differences with relatives, family members, friends, and business associates.
• Prepare 'special" dishes for New Years Eve and New Years Day.   
• Decorate the home with "live" blooming plants to symbolize rebirth and new growth.
• Display oranges and tangerines to symbolize abundant happiness.
• Add candy & dried fruit to welcome in a "sweet" year.
 
NEW YEARS EVE
• Gather with family for a "bountiful" meal and night of fun and games.
• Remember to pay respect to ancestors.
• Open doors and windows at midnight to LET GO of the old year.
• Set off firecrackers to welcome in the New Year!
 
NEW YEARS DAY -  January 23, 2012
• The Chinese believe that events that occur on New Years Day impact the rest of the year, so be mindful of your words, actions and deeds.
• Start fresh, wear new clothes and the color RED for a bright future.
• Greet & bless relatives, neighbors, and friends.
• Gift money and poems to children and unmarried people for good luck.

THE FENG SHUI NEW YEAR BEGINS FEBRUARY 4, 2012..!

Unlike the Chinese New Year, the Feng Shui New Year begins on February 4, 2012. The date is determined by the Solar calendar, not the Lunar calendar.

This year is the year of the YANG WATER DRAGON.

WHAT WILL 2012 BRING FOR SOUTHERN CALIFORNIA REAL ESTATE?

Well, gee, let me get out my crystal ball and take a look... No it isn't meant to be a completely flippant statement, but at this point, everyone is guessing, if they're honest about it. But we can make some pretty good calculations, and estimations based on what's actually happened and inventories. First of all, you must remember that home ownership is about a whole lot more than a cash investment. Yes, it's a hedge against inflation (more on that below), and yes, it's the only investment where you can leverage your cash on such a large transaction. Those points alone should make real estate attractive. But houses were never meant to be ATM's, as many have sadly discovered, and they were not meant to be flipped as fluently as trading stocks, which still others have discovered. But for the long term buy and hold mentality, it's hard to beat real estate. And, that philosophy was just discussed by 3 economists in the New York Times in the December 31st Business section. But home ownership is much, much, more. It is where you raise your family, it is your sanctuary, and it is a quality of life embedded in your investment. But maybe most importantly, it's a way to protect your housing dollar from ever rising again...EVER. To find out what next year will look like? Read the whole newsletter, and you should get a pretty good idea. A summary statement might be, look for the beginnings of the turnaround, for prices to bottom out by 2nd quarter, interest rates to stay killer for at least 6 months, and the overall economy to do its part, as it's projected to grow about 4% this year (last year was approximately 2.7%).

WHERE WILL HOUSING PRICES GO THIS SPRING?

This column is not about to make serious predictions, but there are some indicators worth noting. First of all, the slough off of foreclosures last year due to moratoriums and fraudulent robo signing issues should be off the radar and allow foreclosures to ramp back up. That should mean more competition with the short and equity seller, as well as some pent up listing activity of people who didn't want to list during the holidays. The first and second quarter is always when you see the most listing activity. Following are 4 brief statements by various entities about spring pricing. Zillow believes we not see a bottom in prices until the first quarter of 2012. Standard and Poor thinks prices will drop 5% in the next few months. JP Morgan Chase believes prices will depreciate 6% to 7% over the next 6 months. Barclays says prices will fall 7% by the end of the first quarter of 2012. One thing everyone seems to be in agreement on: housing prices will bottom out by mid-2012 and then stay flat, bringing this down market to an end. A long recovery may be in the offing, but it will be hard for buyers to stay on the sidelines with current pricing and interest rates. Don't be fooled by a house that MAY decline another 2%-3%, but be stuck with a higher interest rate on the loan that more than eradicates any savings on the housing price.

WHERE IS THE SILVER LINING?

The silver lining in real estate is always the future: because the future is where the pent up demand is heading. If you think this overly optimistic, think about the following...
Trulia conducted a survey with Generation "Y", trying to determine future buying trends. One of the questions asked was whether or not they believed in home ownership as part of the American Dream. A staggering 65% said "Yes!" In fact, it was integral to their future plans for family and investment. So where are they? Many are living at home, saving money, and waiting. In fact, the number of young people living with parents in 2003 was approximately 4 million. By 2007 that number had increased to 4.7 million. This year that number is 5.9 million. That's a lot of people who intend to buy, when you figure out 65% of that number. That doesn't include move up buyers of Generations "X" and "Y" who are already in the market. And it doesn't consider the retiring of the "Boomers" and the transfer of wealth. As this year progresses, there will likely be ups and downs. But we planning for an optimistic year ahead. Why not?

YORBA LINDA IS RICHEST U.S. CITY

By RONALD CAMPBELL / The Orange County Register

Don't bother counting Beemers and Range Rovers. Don't even look for the priciest houses.

America's highest-income city is Yorba Linda.

So says the U.S. Census Bureau, which reported Tuesday that Yorba Linda had the highest median household income among more than 500 U.S. cities in 2006. Newport Beach, traditionally considered Orange County's wealthiest, ranked third. (See "Median Orange County household incomes, 2006" to see how other O.C. cities ranked)

By a narrower measure, median family income, Newport Beach ranked first at $147,697, followed by Yorba Linda and Newton, Mass. A household is one or more persons sharing a house or apartment. A family is two or more related persons.

Economists said the two cities' housing mix helps explain the finding.

While Newport Beach has many apartments, "Yorba Linda had the policy of not being friendly to townhomes and apartments," said Esmael Adibi, director of the A. Gary Anderson Center for Economic Research at Chapman University. "If you have lots of apartments and townhomes your median (income) is not going to be as high."

The numbers bear Adibi out. In 2000, the last year for which complete statistics are available, 44 percent of Newport Beach households were renters compared with 15 percent in Yorba Linda.

Since then, Yorba Linda has grown primarily through big-lot subdivisions - and that in turn has drawn families with big incomes.

"If you think about it, the new homes (in Yorba Linda) are a lot more expensive" than they once were, said Anil Puri, dean of business at Cal State Fullerton. "So there's a pre-selection of the kind of people who have moved there in the last five years."

You might call it quiet wealth.

"You go to Newport, and there's cars that cost $350,000 running up and down the streets," said Les Fujimoto, a Yorba Linda real estate agent. "You don't see that in Yorba Linda."

"Yorba Linda is mom and pop and apple pie," said Carole Geronsin, an agent with Prudential California Realty who sells homes there. "In general, most everybody there is unpretentious. They're not flashy. ... They're very fiscally conservative. You'll find wealthy people living in homes you'd be surprised they're living in because they don't believe in flash."

Mayor Allen Castellano said when the city invests in maintaining the infrastructure, it attracts residents with higher incomes to move into the community.

"People pay a little more for home here," Castellano said. "People have to have a little more money to enjoy a certain type of living."

The census reported median household income for all cities with a population of 65,000 or more. Yorba Linda was not included in previous years because it fell below that threshold until 2004 or 2005.

91 WIDENING AIMS TO EASE O.C., I.E. COMMUTE

The $84 million project will add one general-purpose lane for six miles in each direction between the 55 and the 241.

By ALEJANDRA MOLINA / THE ORANGE COUNTY REGISTER
An upcoming 91 freeway widening project is expected to make life easier for Orange County and Inland Empire commuters.

The $84 million project – scheduled to begin construction the first of August – will add one general-purpose lane for six miles in each direction between the 55 and the 241. Crews will widen the bridge for Imperial Highway and the Weir Canyon Road undercrossing in both directions.

On Monday, transportation officials gathered outside the Orange County Transportation Authority's 91 Express Lanes offices – bordering the 91 – to break ground on the project that's expected to be completed by September 2012.

"It touches you in the heart when you get on this freeway at 5:30 or 6 o'clock in the morning and you see a line of lights going all the way out towards Riverside. ... Think of the folks living in our neighboring county coming to Orange County and work and sit in that traffic spending an hour, an hour and a half," said Anaheim Mayor Tom Tait at the ceremony.

"Bottom line of this project is ... it gets people home to their family sooner," Tait said.

Officials at the ceremony said this stretch of the freeway is not only one of the most important in Orange County, but it's considered one of the most congested in the nation.

This freeway is also thought as a lifeline for Orange and Riverside counties as it is the only corridor connecting the two counties.

Officials said this section of the 91 carries an average of up to 174,000 vehicles in the eastbound direction with about 160,000 vehicles that travel the westbound portion of that freeway.

By 2014, officials expect that traffic volumes will grow to an average of 158,000 to 190,000 daily.

Motorists feel the traffic congestion during the week in both the morning and afternoon peak periods, during the holidays and weekends.

"This freeway has linked the two counties for decades and while the congestion of the freeway has caused lots of frustration, this freeway has created all kinds of opportunities," said Karen Spiegel, a Corona councilwoman.

Spiegel said the 91 is not only crucial for Riverside County residents who commute from their home to their jobs in Irvine or Anaheim Hills but also allows them to keep in contact with their families in the O.C.

"When a family seeks to buy a larger home less expensive than Orange County, they come to Corona and the 91 freeway allows them to do so but still stay connected to family and friends in Orange County and LA County," Spiegel said.

Funds for the widening project come from the State Transportation Improvement Program and Proposition 1B – a bond approved by voters in November 2006. About $400,000 in funds are also provided by the renewed version of Measure M that voters approved in 2006.