98 Studio unit condominium project in San Francisco at 766 Harrison St. Convenient location for people looking for a nicely designed pied-à-terre starting from the high $100,000′s.

Another beautiful day here around our Walnut Creek, CA headquarters.

We can’t help but notice some ambitious retail restaurant projects opening up around us and snapped some photos to share with you.

[View with PicLens]

Wow! It’s been a while since we’ve posted our last blog. Well things are jumpin at MojoAgent and.. whew! ..that’s meant social media’s taken a backseat for a while.

That’s no fun. We love reporting on our industry. So, stay tuned. We’re digging into exciting work here and will stream over more updates soon.

The Congressional Oversight Panel’s February oversight report, “Commercial Real Estate Losses and the Risk to Financial Stability,” expresses concern that a wave of commercial real estate loan losses over the next four years could jeopardize the stability of many banks, particularly community banks. Commercial real estate loans made over the last decade – including retail properties, office space, industrial facilities, hotels and apartments – totaling $1.4 trillion will require refinancing in 2011 through 2014. Nearly half are at present “underwater,” meaning the borrower owes more on the loan than the underlying property is worth. While these problems have no single cause, the loans most likely to fail are those made at the height of the real estate bubble.

The Panel found that “a significant wave of commercial mortgage defaults would trigger economic damage that could touch the lives of nearly every American.” When commercial properties fail, it creates a downward spiral of economic contraction: job losses; deteriorating store fronts, office buildings and apartments; and the failure of the banks serving those communities. Because community banks play a critical role in financing the small businesses that could help the American economy create new jobs, their widespread failure could disrupt local communities, undermine the economic recovery and extend an already painful recession. You can read more and watch the video by linking here.

FHA- As of mid February HUD will require all appraisals to be ordered through a management company ( HVCC) just like all conventional loans are ordered today. They’re also eliminating the 90 day flip rule as of next month, but only for sellers that have a 20% or less profit margin ( which basically means the rule still exists)

They’re apparently going to re-visit the rule later this month to see if they can make it more effective, stay tuned. Lastly they are raising their MIP premium from 1.75% to 2.25% by this spring, and lowering the seller credit down from 6% to 3% by this summer.

The FHA’s Latest Press Release on its New Measures to Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
   • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
   • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
   • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
   • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
   • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
   • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
   • Publicly report lender performance rankings to complement currently available Neighborhood Watch data – Will be available on the HUD website on February 1.
     • This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
   • Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
     • Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
     • This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
   • Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
     • Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
   • HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
     • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
     • Legislative authority permitting HUD maximum flexibility to establish separate “areas” for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

The Associated Press and NPR reporting that the number of homeowners on the brink of foreclosure fell in November, the fourth straight monthly decline, as mortgage companies evaluated whether borrowers were eligible for help.

Nearly 307,000 households, or one in every 417 homes, received a foreclosure-related notice in November, down 8 percent from a month earlier, RealtyTrac Inc. said Thursday. Banks repossessed about 77,000 homes last month, down slightly from October.

NPR has a pretty neat Interactive Map detailing RealtyTrac’s data.

Fannie Mae last week launched a Spanish version of its HomePath.com Web site designed to help more potential homeowners who speak Spanish purchase Fannie Mae-owned properties.

The new Spanish Web site mirrors the English version of HomePath.com, featuring an interactive search tool of Fannie Mae-owned properties nationwide, details about HomePath® financing, a mortgage payment calculator, property alerts, and information on foreclosure prevention and the Making Home Affordable program.

For more information about HomePath, visit www.HomePath.com and click “En Español”, or for direct access to the Web site in Spanish, visit www.es.HomePath.com.

Here’s a handy breakdown of Who Pays What in a ‘Traditional’ real estate transaction. Always be sure to clarify these details.

The U.S. Department of Justice has obtained a record $2.725 million settlement against Los Angeles apartment owners for alleged rental discrimination. In a lawsuit brought in August 2006, the Justice Department claimed that Donald T. Sterling and others engaged in discriminatory practices, such as refusing to rent to African-Americans, Hispanics, and families with children, refusing to rent to non-Koreans in Koreatown buildings, misrepresenting the availability of rental units, and preparing internal reports of tenants’ racial profiles.

Under the name of Beverly Hills Properties, the defendants in this lawsuit own and manage about 119 apartment buildings containing over 5,000 apartment units in Los Angeles County. Their agreement to pay $2.725 million is the largest monetary settlement the Justice Department has ever obtained for rental housing discrimination. The bulk of the money will be placed in a fund to pay tenants harmed by the defendants’ discriminatory practices. The defendants must also take certain measures to ensure non-discriminatory practices, such as obtain fair housing training and monitor their employees’ compliance with fair housing laws over the next three years. For more information, the Justice Department’s press release is available Here .

Thanks to the folks at First Tuesday for charting the contrasts of employed agents in July 2008 with August 2009 at California’s 30 largest brokerages.

Since July of 2008, employment has dropped dramatically, with Agents and Brokers now scrambling to succeed in the half-priced turmoil of spastic REO and negative equity listings. Those that remain full-time are the ones who have successfully adjusted.

Of note ..Real Estate Ebroker, with a 53% jump in enrollment. This San Diego based VOW brokerage offers California agents 100% commission in exchange for a flat fee of $500 (plus $135 for E&O coverage) per transaction.

Possible conclusion? Agents trending toward controlly their own destinies with VOWs.

Credit Scores: Can you really Get Them Free? (WSJ) Jane Kim reporting on the various ways to track your credit score these days, as well as the variation among credit scores, depending on which scoring model is being used and which credit bureau the data are pulled from. Lenders can choose from FICO, the VantageScore—a score developed by the three credit bureaus—or from any one of the credit bureaus’ own scores. Adding to the confusion, lenders can choose from multiple versions of the same scoring model. FICO, for example, recently rolled out its latest version, FICO 08.

The mortgage machine backfires (NYT) A great column from Gretchen Morgenson on MERS today. Never heard of it? Would you believe some 60 million loans are registered in the name of MERS,  set up by the mortgage industry as an electronic registry for mortgages to help expedite county clerk recordings.  The big legal question is can a company that just acted as ‘nominee’ and didn’t own the mortgages it registered have the legal right to move against the borrower. Fascinating topic in light of a recent Kansas court ruling…

Expediting Short Sale Approval is a Mandate now!

Recently, the California Senate Bill SB306 was approved by the Governor to help expedite the Short Sale Process.

Such law applies to all mortgages and deeds of trust recorded between January 1, 2003 to December 31, 2007, secured by owner-occupied residential real property containing no more than 4 dwelling units. The new law requires that

1. All Lenders or the Beneficiary of the Property must either Deny a Short Sale offer in 4 days from receiving the offer or it is assumed to be “accepted.”

2. All Lenders or the Beneficiary of the Property must, within 21 days of the receipt of a short-pay request, as defined, to prepare and deliver a short-pay demand statement,  which would be a written statement, conditioned on the existence of a short-pay agreement, that is prepared in response to a request from an entitled person or authorized agent, setting forth an amount less than the outstanding debt, together with any terms and conditions, under which the beneficiary would execute and deliver a reconveyance of the deed of trust securing the note that is the subject of the short-pay demand statement.

Three years ago, the sale of the 110 red brick apartment buildings at Stuyvesant Town and Peter Cooper Village in Manhattan amounted to the biggest American real estate deal in history. Well, this one shouldn’t come as a shocker, but, uhhh ..it’s another painful reminder.

TheDeal.com and other insiders reporting on the life support.

With much ado about going ‘Green’ these days, there’s been recent writing in the NYTimes , Tropolism and more on how LEED was developed to make owners, developers, builders, architects, feel good, yet it is imperfect with a few glaring loopholes, like this one: that LEED accreditation doesn’t automatically mean the buildings will have lower energy consumption. Jeez, then what’s the point!?

For all of you keeping track on TARP status & Dollars, the Congressional Oversight Panel published a report today called The Continued Risk of Troubled Assets updating the public on their findings. You’ve paid for the report, in more ways than one, so here’s all 145 pages of it.

Fresh off the presses!

Marketwatch’s assistant managing editor/personal finance, Steve Kerch, reporting that the housing bust has pushed home prices down substantially, taking a heavy toll on real estate commissions in the process, and is also devaluing the role of the real estate agent in buying and selling, a study from J.D. Power and Associates showed this week.

While real estate agents are still the most important cog in the transaction, home buyers and sellers increasingly say extra services provided by real estate companies — such as inspections, appraisals and legal and moving company recommendations — make a big difference in how satisfied they are at the end of the day.

“In a tight market, every aspect of service offered will be scrutinized very closely,” said Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates. “For this reason, it is critical for real estate companies to promote the value that they bring to buyers and sellers, not only in any additional services they offer, but also in their agents and operations.”

The importance of agents has declined substantially from 2008, while the importance of additional services has increased considerably — by 12 percentage points among buyers and 8 percentage points among sellers, the survey found.

In addition, actual usage of many of these services has decreased from 2008, likely due to cutbacks made by real estate companies in response to a depressed market.

The study, now in its second year, measures and with the largest national real estate companies.In the home-buyer segment, Keller Williams ranks highest for a second consecutive year, with a score of 806 on a 1,000-point scale. Following in the rankings are Coldwell Banker (801) and RE/MAX (798). Among home sellers, Coldwell Banker ranks highest with a score of 815. Keller Williams follows with a score of 801.

Among other findings in the study: The proportion of first-time home buyers has increased considerably — to 56% in 2009 from 44% in 2008. Home sellers report that, on average, 3.2 open houses were conducted for their property in 2009, compared with 4.5 in 2008. Approximately 64% of home sellers used a Web site listing to market their home in 2009, up from 61% in 2008.

Looks like the commercial-property market is in deep trouble. Anybody surprised?

This downturn hasn’t been driven so much by speculative overbuilding but by investors’ overenthusiasm. Commercial property was a popular asset for much of this decade. Institutional investors who lost lot of dough when the dotcom bubble burst were persuaded that switching from the stockmarket into property would diversify their portfolios and reduce their risk. Investors indulged in borrowing at a low interest rate (with plenty of ready financing available) to buy buildings and counting on the rental yield and capital growth to more than cover their financing costs.

That strategy looked smart when rents and capital values were rising and vacancy rates were low. But as cheap financing has dried up and economies have tumbled into recession, investors have become badly exposed. According to Marcus & Millichap, the office-vacancy rate in Manhattan climbed by more than three percentage points in the first half of the year, to 11.2%. As tenants have disappeared, rents have fallen too—by 16% over the past year, Marcus & Millichap reckons.

Property prices have also been badly hit. Moody’s estimates that commercial-property prices dropped by 7.6% in May alone, leaving them almost 35% below their peak in October 2007. Owners don’t like selling into a falling market (although some distressed sales are occurring) otherwise we suspect prices would’ve gone down even further had transactions not dried to a trickle.

This sure sounds like a replay of the downturn in the residential market, where easy borrowing terms allowed homebuyers to push prices to extreme levels. To add to the sense of déjà vu, property loans have also been bundled into complex financial instruments, known as commercial mortgage-backed securities (CMBSs). The riskiest ones issued between 2005 and 2007 are now running into trouble.

Stay tuned.