March 2008 LoanPerformance Home Price Index

3-Month and 12-Month Change By Top CBSAs (Core Based Statistical Areas) as of March 2008
	3-Month	12-Month
	Change	Change
Los Angeles-Long Beach-Glendale, CA	-7.41%	-21.19%
Cleveland-Elyria-Mentor, OH	-7.38%	-11.77%
Oakland-Fremont-Hayward, CA	-7.33%	-19.87%
Cape Coral-Fort Myers, FL	-7.26%	-20.70%
Riverside-San Bernardino-Ontario, CA	-7.09%	-22.74%
Tampa-St. Petersburg-Clearwater, FL	-6.90%	-16.46%
San Diego-Carlsbad-San Marcos, CA	-6.82%	-19.02%
Miami-Miami Beach-Kendall, FL	-6.77%	-16.52%
St. Louis, MO-IL	-6.69%	-6.62%
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL	-6.01%	-18.39%
Honolulu, HI	-5.48%	6.38%
Phoenix-Mesa-Scottsdale, AZ	-5.43%	-17.74%
Las Vegas-Paradise, NV	-5.11%	-17.86%
Boston-Quincy, MA	-4.99%	-10.35%
Detroit-Livonia-Dearborn, MI	-4.82%	-5.30%
Orlando-Kissimmee, FL	-4.69%	-16.18%
San Francisco-San Mateo-Redwood City, CA	-4.47%	-12.86%
Denver-Aurora, CO	-3.86%	-8.74%
Washington-Arlington-Alexandria, DC-VA-MD-WV	-3.66%	-12.65%
Chicago-Naperville-Joliet, IL	-3.53%	-7.55%
Atlanta-Sandy Springs-Marietta, GA	-3.46%	-7.58%
Charlotte-Gastonia-Concord, NC-SC	-3.20%	-1.35%
Minneapolis-St. Paul-Bloomington, MN-WI	-2.48%	-8.87%
Edison, NJ	-1.72%	-4.98%
Portland-Vancouver-Beaverton, OR-WA	-1.32%	-3.03%
Philadelphia, PA	-1.06%	-1.67%
Austin-Round Rock, TX	-0.90%	4.40%
Salt Lake City, UT	-0.70%	5.27%
Seattle-Bellevue-Everett, WA	-0.62%	-3.80%
San Antonio, TX	-0.11%	4.38%
Dallas-Plano-Irving, TX	-0.06%	3.38%
Houston-Sugar Land-Baytown, TX	0.00%	2.23%
Raleigh-Cary, NC	0.05%	0.83%
New York-White Plains-Wayne, NY-NJ	0.26%	-3.58%

Source: First American CoreLogic, LoanPerformance HPI, Single Family Detached Series as of March 2008

Allstate To Refund 700,000 Texas Homeowner Accounts

Texas customers of Allstate Insurance will get $71 million in refunds, credits and rate reductions for homeowner policies in a settlement that resolves legal disputes with the state over the rates dating to 2004.

The settlement involving Allstate Texas Lloyd’s customers was announced by Texas insurance officials Monday.

Allstate will refund almost $37 million for new and renewal policies written between Dec. 1, 2004-April 23, 2006, a period when the state said its rates were too high.

Allstate also will reduce homeowners rates for Allstate Texas Lloyd’s customers by 3 percent statewide for new and renewal policies written for one year beginning June 2. And it will credit or refund policy holders 3 percent between Aug. 20, 2007 and June 1.

The company agreed not to increase homeowner premiums from June 2 to June 1, 2009, barring extraordinary circumstances.

The Texas Department of Insurance estimates as many as 700,000 policy holders will be affected by the settlement. Allstate is Texas’ second-largest writer of homeowner policies and covers nearly 15 percent of the market.

Former policyholders eligible for refunds will receive checks from Allstate. Current eligible policyholders will receive refunds through policies or company checks. All refunds are to be credited no later than Nov. 1.

“This agreement with the Texas Department of Insurance helps create clarity and consistency in how we work together,” said Rich Crist, Allstate’s Texas Field vice president. Crist said he hoped the settlement led to a more competitive marketplace.

Allstate said the settlement agreement doesn’t include policies issued by Allstate Fire and Casualty Insurance Co.

Source: Houston Chronicle

Texas Markets Forecast: Better Than The Rest Of The Nation

Money Magazine had this to say about the Texas Real Estate Markets.

Pity the residents of Stockton, Calif., whose homes are likely to lose more than half of their 2006 value. But if you happen to live in Texas, congratulations: The housing tornado passed you by.

Texas Markets projected forecast for May of 2009 are below.

Metro Area	Home Price (median)	Price Change (5 years)	Forecast (May ‘09)	% change in foreclosure rate (1 year)
McAllen, TX	$109,000	23.3%	4.0%	23%
El Paso	$134,000	51.9%	1.8%	32%
Fort Worth/Arlington	$134,000	17.4%	1.4%	16%
Houston	$150,000	25.1%	1.2%	11%
Dallas	$161,000	15.8%	1.2%	14%
San Antonio	$152,000	39.6%	0.8%	22%
Austin	$186,000	28.9%	-0.1%	-6%

For Top 100 U.S. Markets Forecast visit CNNMoney.com.

Texas Foreclosure Market Statistics – Q1 2008

Rate Rank	State	Metro Name	Props with Filings	1/every X HH (rate)	%Change from Q4 07	%Change from Q1 07
–		U.S. Total	649,917	194	23.15	111.89
39	TX	FORT WORTH/ARLINGTON	4,599	167	4.43	11.90
40	TX	HOUSTON/BAYTOWN/SUGARLAND	12,468	168	41.78	58.85
44	TX	DALLAS	8,337	185	-1.88	6.37
61	TX	SAN ANTONIO	2,599	284	1.68	9.02
73	TX	AUSTIN/ROUND ROCK	1,664	369	8.26	4.79
79	TX	MCALLEN/EDINBURG/PHARR	527	455	575.64	997.92
96	TX	EL PASO	246	1,013	-10.55	-51.95

Source: RealtyTrac

11th Annual GO GREEN ExpoWorkshopCinema

ExpoWorkshopCinema
April 4 & 5 2008
Live Oak Civic Center – San Antonio, TX

GO GREEN ExpoWorkshopCinema
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GO GREEN IS TEXAS FIRST & ON INSIDE
ALL GREEN EVENT…NO MOPS, FUDGE OR POTS !!!

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Presented by Green Experts
FEATURED SPEAKERS
ADOBE: MOISTURE ABSORPTION & TEMPERATURE CONTROL
John Morony, Environmental biologist, Earth Architecture Consultant
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Sid Bolfing & John Galiotos, Texas Renewable Energy Educaation Consortium
CLEARING THE AIR
Patrick Kelly, EPA District 6
GREEN VEHICLE RESEARCH & DEVELOPMENT
Alan Montemayor, Southwest Research Institute
Click Registration for Complete Schedule
Qualify for Continuing Education Credits Accepted for
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Find the products and information you need to make your projects GREEN. It’s More than a good idea…

For more information visit www.greenconnexion.com

SWBC and Royalton Real Estate Form Partnership

SWBC, through its affiliate SWBC Enterprises, Ltd. announced that it has acquired a majority interest in Royalton Real Estate Capital, LLC to invest primarily in new development opportunities such as apartments, retail, office, and industrial. Secondarily, they will invest in special purpose assets including land, medical office, and healthcare-related properties. The companies will also invest in value-added and core real estate products.

One of the reasons SWBC decided to enter into a relationship with Royalton was because of the respect the company, its board members, and its partners bring to the real estate community. “We think a relationship with Royalton is a great fit for SWBC. It gives us yet another opportunity to diversify our company,” said Charlie Amato, Chairman of SWBC.

Ed Kelley, former president and CEO of USAA Real Estate Company (RealCo) and Air Force Brigadier General (Ret.) Wilson C. (Bill) Cooney, former president of USAA Property & Casualty Insurance Group are two of Royalton’s board members. “I applaud SWBC for their initiative to partner with Royalton. These are two great companies with exceptional talent who are committed to bringing new capital and real estate development to Texas. This will significantly contribute to the economy of our region,” said Bill Cooney.

Royalton’s investment team has been together for about four years. Each member knows the market and has significant real estate experience. “We had been looking at real estate investments for years and thought that now was a good time to enter the market. We chose Royalton because of their experience, professionalism, and the caliber of the team,” said Gary Dudley, President of SWBC. “I am pleased to be a part of the Royalton Team. To invest in the current real estate market requires a thorough understanding of the economy, a wealth of expertise in the dynamics of real estate investing, and an experienced team with a strong track record of success. The Royalton Team possesses all of these important traits, and is well suited to capitalize on opportunities in the market place,” said Ed Kelley.

To learn more about Royalton Real Estate Capital, LLC visit their web site at www.royaltonrec.com.

HUD Proposes Mortgage Reform To Help Consumers Better Understand Their Loan

WASHINGTON – In an effort to significantly improve the complicated, unclear and costly homebuying process, U.S. Housing and Urban Development Secretary Alphonso Jackson today proposed mortgage reform designed to help consumers better understand their loan terms so that they can shop more effectively for the largest purchase of their lives.

HUD’s proposal reforms the more than 30-year old rules of the Real Estate Settlement Procedures Act (RESPA), and improves disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. For the first time ever, HUD is proposing that mortgage lenders and brokers provide consumers with a standard Good Faith Estimate. By more openly disclosing the key elements of the loan and by controlling fee inflation, the Department seeks to provide consumers with enough information to allow them to shop more effectively for the lowest cost loan. HUD’s economic analysis finds that by offering consumers clearer, more certain cost estimates, the average borrower will save nearly $700.

“A lot of the mortgage problems we see today are directly related to the fact that few people fully understand this process,” said Jackson. “Buying a home can be very intimidating. Consumers have had no assurance that the loan terms and closing costs they are offered will reflect what they confront at the settlement table, and that’s been one of the factors driving the current housing downturn. Our proposal fixes that. We owe it to the American homebuyer to give them the information they need to make smart choices.”

Brian Montgomery, HUD’s Assistant Secretary for Housing, added, “It’s not right that millions of consumers go to the settlement table without fully understanding the mountain of paperwork they’re asked to sign and, on top of that, expected to pay thousands of dollars in closing costs for services they’ve never heard of. This new Good Faith Estimate will give families the tools they need to understand what they’re getting into before they sign on the dotted line.”

In light of recent increases in loan defaults and foreclosures, the need for reform is imperative. When President Bush announced his comprehensive plan to address rising foreclosures last August, he pledged to offer new mortgage rules that would help families to avoid getting into trouble in the first place. This proposed RESPA rule makes good on that pledge.

HUD is proposing to offer consumers a standard Good Faith Estimate (GFE) that will substantially enhance disclosure of all important aspects of the loan, including:

• The interest rate and monthly payment;
• Whether the interest rate and principal balance can increase and by how much; and
• Whether the loan has a prepayment penalty or balloon payment.

The proposed Good Faith Estimate would consolidate closing costs into major categories to prevent “junk fees” and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. In addition, HUD’s new proposed rule would specify the charges that can and cannot change at settlement. If a fee changes, HUD proposes to limit the amount it can change. HUD also proposes to modify the HUD-1 settlement statement to help consumers compare the anticipated charges on the Good Faith Estimate and their actual charges.

The Good Faith Estimate would also require that lender payments to mortgage brokers (often called Yield Spread Premiums) be disclosed. It is HUD’s belief that these payments are directly dependent on the interest rates that consumers agree to and therefore ought to be disclosed. To ensure that HUD’s new proposal would not create a consumer bias against brokers, the Department did rigorous consumer testing and found the proposed Good Faith Estimate helped consumers to select the lowest cost loan more 90 percent of the time, regardless of whether the loan was originated by a lender or a broker.

Finally, HUD is proposing that settlement agents read a “closing script” to borrowers at the settlement table and that a copy be provided to the borrower. This closing script would ensure that the settlement agent not only compares the borrower’s estimated and actual charges, but would detail the key terms of the loan. HUD’s extensive consumer testing found borrowers appreciated the enhanced disclosures, believed the loan details on the closing scripts were clear and understandable, and reacted positively to having the scripts read out loud.

Legislative Changes to RESPA

To further bolster consumer protection and to ensure uniform and consistent enforcement of RESPA, HUD intends to seek legislative changes to the Act that will complement the regulatory improvements made by the rule. Currently, RESPA does not provide HUD with enforcement mechanisms for some of the most important consumer disclosures and protections. A lack of enforcement authority and clear remedies for violations of critical sections of RESPA negatively impact consumers and diminish the effectiveness of the statute.

HUD will seek the authority to impose penalties for violations of specific sections of RESPA, including Section 4 (provision of uniform settlement statement); Section 5 (GFE and settlement costs booklet); Section 6 (loan servicing); Section 8 (prohibition against kickbacks, referral fees, and unearned fees); Section 9 (title insurance); and portions of Section 10 (regarding escrow accounts). In addition, HUD proposes the authority for the Secretary and State regulators to seek injunctive and equitable relief for violations of RESPA; require delivery of the HUD-1 to the borrower three days prior to closing; and establish a uniform statute of limitations applicable to governmental and private actions under RESPA.

To Read the full text of HUD’s proposed RESPA rule, visit HUD’s website.

Nehemiah Wins Judgment Decision In Lawsuit Against HUD

The following statement is in response to the decision by the United States District Court for the Eastern District of California to rule against the U.S. Department of Housing and Urban Development (HUD) rule to ban private downpayment assistance as proposed in the “Standards for Mortgagor’s Investment in Mortgaged Property” regulation published October 1, 2007.

“We are thrilled with the Court’s decision to support low-to-moderate income families across the country by ruling against HUD’s attempt to ban private downpayment assistance. This is a major and conclusive judgment, leaving no uncertainty that downpayment assistance is a life line to the families that Nehemiah serves. It is heartening to see that the Court’s arguments echo our sentiments and concerns. This decision preserves access and supports the use of sensible and reasonable approaches to homeownership for millions of working class families. The Nehemiah Program has granted more than $1 billion in gifts in the past decade, helping more than 250,000 American families achieve the American dream. It is a privilege to continue providing a helping hand to America’s underserved families by building both safer communities and financial strength through homeownership. As we have said before, we look forward to working with HUD to support deserving families across the country.”

- Scott Syphax, President and CEO of Nehemiah Corporation of America, the largest and oldest private downpayment assistance provider.

Don’t Skip On Title Insurance

TYPICAL TITLE PROBLEMS

To close on a house, the buyer usually must have title insurance guaranteeing that he or she will be the sole owner.
Insurance companies refuse to provide that insurance in some cases. Here are common examples of why title insurance would be denied:
•Grandparents die without leaving wills, and one child keeps the home without proper legal documents. It’s not found until two generations later.
•The property description differs from the sales contract.
•The previous owner forged mortgage documents to show that he or she had paid off a previous mortgage. But the former mortgage company still owns the property.
Source: Alamo Title Co.

WHAT DOES TITLE INSURANCE COST?

The Texas Department of Insurance sets the same on-time premium rates for all properties, regardless of type of home, its age or where the house is located. The insurance policy must cover at least the sales price of the property.
The minimum premium is $229 for the first $10,000 in sales price. Premium rates are broken down into six tiers and get smaller as the purchase price increases to $25 million.
For instance, buyers pay the minimum rate plus an average of $3.41 for each additional $500 of the price, up to $100,000.
A home priced at $100,000 would have an $843 premium.
The premium for a $200,000 house includes the $843 from the first $100,000, plus $2.67 per $500 of additional value, or $1,377.
Source: Texas Department of Insurance

Read “Title insurance protects buyers” Written by Aïssatou Sidimé Express-News Business Writer

Some Builders Have A Deal For Potential Buyers: Price Protection Guarantees

As the housing slump drags on, some builders have a deal for potential buyers: Sign a contract, and if the cost of comparable homes drops before closing, you get the lower price.

Companies including KB Home and Ryland Group hope such “price protection” guarantees will lessen consumers’ paralyzing fears about buying real estate whose value is falling and get them to the dotted line, bring in much-needed cash and reduce high cancellation rates.

Los Angeles-based KB Home, one of the country’s biggest builders, is preparing to roll out its program in 35 markets nationwide this month. Ryland, which only recently offered price protection for the first time and now gives it to any buyer who asks, is looking to reiterate its value in the marketplace, said Eric Elder, senior vice president of marketing and communications. “If that value changes,” he added, “we’ll share that risk.”

It is a strategy shift for the ailing industry — one market barometer has its stock prices down 50% in the last year — which initially resisted price cuts as the market softened. Builders first offered freebies like granite countertops, tropical vacations or discounted closing costs. Then, in September, Hovnanian Enterprises Inc. held a national “Deal of the Century” bonanza offering discounts into the six figures, a move other builders quickly copied, even though it can drag down a neighborhood’s value and incense earlier buyers.

Dramatic price reductions, however, haven’t been enough. As the residential market continues to deteriorate, more buyers are having trouble securing mortgages and selling existing homes, whose inventories are near all-time highs. Dire price predictions have also spooked consumers: Wachovia Corp. forecasts nationwide home values could fall as much as 20% this year. The resulting barrage of chilling headlines has left builders fighting to reassure customers that now is, in fact, a safe time to buy.

“In this market, where everybody’s kind of hypersensitive, anything to alleviate the fear factor and the concern about eroding equity, that is a wonderful idea,” said Kelly Cobb, a North Carolina broker with Fonville Morisey.

The guarantees cover the base price and exact floor plan, and can include existing inventory, already heavily discounted, though those deals generally close quickly, leaving less time for prices to fall. Determining a specific reduction is a process that blends art and science, Mr. Elder said, and varies by community. Moreover, the protection ends at closing, so longer-term price declines could still leave buyers owing more than the house is worth.

There is also risk for builders, and no assurances this will work: Last year, behemoth Lennar Corp. tested it in Florida, one of the states hardest hit by the downturn, but stopped.

Even after price tags are trimmed, buyers could still decide to walk away, keeping cancellation rates elevated. And if prices decline during construction, companies could see gross margins, which hit 25% during the boom and have plummeted to razor-thin levels, further stressed. “Depending on how much lower prices could go down, it could mean moving from a profit to a loss or a deeper loss,” said Robert Curran, Fitch Ratings’ lead home-building analyst.

Some industry watchers think the offers mean builders don’t expect further significant price erosion.

By Dawn Wotapka From The Wall Street Journal Online