HOMEOWNERS INSURANCE

Several Allstate insurance subsidiaries were suspended from writing new policies after an appeals court ruled Wednesday that the company could be punished by the state for not turning over documents on how it sets property insurance rates. However, the suspension may not last long, as Allstate has continued to give regulators the documents requested while the dispute went through the courts.

LAWSUIT

A federal judge in Los Angeles has ruled that a shareholder lawsuit against Countrywide Financial Corp. executives and directors should go to trial, rejecting arguments to dismiss the case. The suit contends that Countrywide directors and officers failed to provide enough oversight of the lender and misled shareholders about the company’s true financial state.

HOUSING AID

Housing and finance experts discussed the mortgage crisis and ways to restore stability in the system earlier this week in Washington, D.C. "The right way to tackle the mortgage crisis is to have pinpoint, targeted efforts that address each variable in the housing crisis without asking the taxpayer to bailout lenders or to cover loans that are best described as moral hazards," said FHA Commissioner Brian Montgomery.

MY SAFE FLORIDA HOME

Home improvement grants: Going, going (almost) gone. The My Safe Florida Home program will achieve its goal of 35,000 grants to homeowners by the end of this month, and the first-come, first-served program will stop accepting grant applications. The free home inspections, however, will continue.

FLOOD INSURANCE

The Senate agreed Tuesday to write off more than $17 billion in National Flood Insurance Program debt and extend the program for another five years while increasing premiums and reducing subsidies. The bill now must be reconciled with a House bill before receiving final approval.

MORTGAGE FRAUD

Reports of suspected mortgage fraud rose 31 percent in fiscal 2007, according to a new FBI report, and the U.S. is on track for even more in fiscal 2008. The Mortgage Asset Research Institute said earlier this year that Florida led the nation in mortgage fraud in 2007 for the second straight year, followed by Nevada, Michigan and California.

FORECLOSURES

Nationwide, 243,353 homes received at least one foreclosure-related filing in April, up 65 percent from 147,708 in the same month last year and up 4 percent since March, RealtyTrac Inc. announced.  

FLORIDA HOME SALES

Florida Realtors reported positive signs in their local housing markets during first quarter 2008, noting a slower rate of expansion for inventory levels and an increase in pending home sales in some areas. Another positive note: A total of 8,581 existing condos sold statewide during the quarter, up 8.3 percent over fourth quarter 2007. "If we look at what is happening month-over-month for 2008, it appears that the bottom may be here," says 2008 FAR President Chuck Bonfiglio. "We are now seeing more activity, more sales and even prices starting to rise in some markets."

Quarterly analysis for homes and condominiums for the Naples area can be found on the following pages: Naples Homes, Naples Condos

LENDERS

Monday had good news and bad news for lenders. While a number of companies posted dismal first-quarter earnings, investors seemed to view the quarter as the bottom of the down cycle and proceeded to bid up mortgage lenders’ stock prices, hoping to get a high return after the market completely rebounds.

MORTGAGES

Mortgages could become easier to secure as investors move more money into mortgage-backed securities (MBS), which pool collections of mortgages. MBS got a bad name recently because some held subprime loans, but investors have started to view them as safe again – and a relative bargain. 

REAL ESTATE ECONOMY

The nation’s foreclosure hemorrhage slowed a bit last month, according to Foreclosures.com, down 5 percent from March. "The sky isn’t falling, and the bottom of the housing market is in sight," says Alexis McGee, company president.

FEDERAL HOUSING ADMINISTRATION

The FHA will implement a flexible premium pricing structure for loans beginning July 14, 2008. Currently, FHA is "one size fits all" that charges borrowers 1.50 percent of the loan balance upfront and .50 percent annually regardless of their credit standing. Under the new rule, it will range from 1.25 percent to 2.25 percent.  

MORTGAGE RATES

Rates on 30-year mortgages edged down slightly to average 6.05 percent this week, but remained above 6 percent for the third straight week, according to Freddie Mac’s weekly nationwide survey.

REAL ESTATE INVESTING

Despite the sluggish economy, investors this year are putting their money into funds that invest in real estate investment trusts (REITs), a turn-around of recent trends. A total of $1.23 billion flowed into domestic real estate investment funds in the first three months of the year, according to new research. Investors are doing this because they believe that real estate markets are stabilizing and the price of investing in a real estate investment trust with low prices will pay handsomely for them.

HOUSING AID

The House on Thursday passed a massive homeowner rescue plan to provide cheaper, government-backed mortgages to half a million debt-ridden borrowers and bolster an economy hurt by the housing crisis. The Senate now must consider the bill and President Bush has threatened a veto.

MORTGAGE PROBLEMS

Mortgage delinquencies are spreading beyond the subprime market, as new data shows that more borrowers with good credit have fallen behind on their house payments. About 2.3 percent of prime loans were 60 days past due in February, the highest level in at least a decade, according to First American CoreLogic LoanPerformance.