Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, Jul 28 1992 Date: Tue, 28 Jul 92 04:32:03 EDT Message-ID: 07-28 0000 DECISIONLINE: Real Estate USA TODAY Update July 28, 1992 Source: USA TODAY:Gannett National Information Network BILL WOULD AID HOMEOWNERS: Homeowners who take a loss when selling their homes could get a tax cut soon. The House on Monday passed a bill to give homeowners a limited tax break for selling their homes at a loss. Federal tax laws currently don't let homeowners deduct losses on home sales. The bill goes to the Senate Finance Committee Wednesday. Lloyd Bentsen (D-Texas), committee chairman, supports the bill. MORTGAGE ORIGINATIONS SOAR: Even before the latest mortgage refinance rush started, mortgage originations had soared to unprecedented levels in the first part of this year. Estimates out Monday from Inside Mortgage Finance, a weekly industry newsletter, report that mortgage originations in the first six months of 1992 are at a record high of $450 billion. Inside Mortgage Finance also ranked top mortgage originators. (For more, see special Mortgage package below.) EXISTING-HOME SALES DROP: Figures from the National Association of Realtors show existing home sales fell 3.4% in June, compared with the same month last year. Home sales dropped to a seasonally adjusted annual rate of 3.36 million, down from 3.43 million in May. It was the third monthly decline in a row. Buyer traffic has risen in recent weeks, however, a sign the recovery of last winter may be back on track. MORTGAGE BANK EARNINGS STRONG: Mortgage banks are seeing a dramatic pickup in business. They should pump out robust earnings in coming quarters, especially if rates keep dropping. That would spur more demand from homeowners seeking to refinance mortgages and new buyers. Among companies likely to shine: Countrywide Credit Industries and newcomers Margaretten Financial, North American Mortgage, Farragut Mortgage. COMPANY OPENS MISSOURI OFFICE: Los Angeles-based Angeles Housing Concepts Inc., a wholly owned subsidiary of Angeles Corp., Monday said that Craig Reinmuth will head the company's new operations office in Kansas City, Mo. Reinmuth will handle operations for a portfolio of 15 congregate and assisted living senior housing facilities located in eight states. Reinmuth has been promoted to executive vice president. SETTLEMENT PRICE ADJUSTED: Rockefeller Center Properties Monday said it will adjust the exercise price for the warrants to be issued as part of a settlement of Pruitt vs. Rockefeller Center Properties Inc. et. al., a class-action suit. The new price: $16.32 or the average composite closing price for RCPI stock in the 30 days before the warrants are issued, whichever is lower, with a minimum of $9.88. FIXED-RATE MORTGAGES DECLINE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.08% Monday, down from Thursday and down from 8.09% the week before. They were at 9.50% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.45%, down from Thursday and down from 5.50% the week before. A year ago they were at 7.21%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.53% Monday, unchanged from Thursday and unchanged from the week before. A year ago they were at 6.29%. For the 11th District ARM index, rates were at 5.290%, unchanged from Thursday and unchanged also from the week before. A year ago they were at 7.329%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Monday, listing at 7.51%. That's down 0.02 from rates of 7.53% Thursday and down 0.15 from 7.66% the week before. T-bonds were at 8.39% a year ago. SPECIAL PACKAGE ON MORTGAGE: ORIGINATIONS UP 68% IN HALF: Inside Mortgage Finance, a weekly newsletter based in Bethesda, Md., Monday released estimates showing a 68% increase in mortgage originations for the first half of 1992 from the first half of 1991. The newsletter also suggests that new residential mortgage production should top $700 billion for the full year, especially if refinancing continues strong headed into the fourth quarter. OLD RECORD WAS SET IN 1991: The previous-highest mortgage origination year was 1991, when an estimated $565 billion in one- to four-family mortgages were originated. Most of the nation's top residential mortgage producers reported very big gains during the first half of 1992, according to Inside Mortgage Finance's latest ranking of originators. Topping the list: Countrywide Funding, based in Pasadena, Calif. COMPANIES SOARED IN THREE YEARS: Countrywide Funding of Pasadena, Calif., and St. Louis-based Prudential Home Mortgage reported more origination volume during the first six months of 1992 than they did for 12 months of 1991. Three years ago, neither firm was even among the top 10 originators in the country. Generally, lenders with major wholesale origination operations report the biggest growth. (End of package.) Real Estate Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM