Top 10 Crowdfunding Sites For Fundraising

Forbes.com Entrepreneurs 462,637 views

Unless you’ve been living in a remote island for the last few years, you’ve heard about crowdfunding or stories of people raising thousands or millions of dollars online.

In fact, there’s been so much chatter out there about crowdfunding that people love to throw out the line “yeah, I’ve heard there are something like 500 crowdfunding sites.” While hundreds of sites may be popping up, not all of them have real communities and funding successes under their belt.

Which begs the question… what crowdfunding site is best for you?

As a crowdfunding industry insider, I thought I’d give you an easy guide for which site to go to for your crowdfunding needs.

I’ll start with a tiny overview of the industry, a short primer on the different types of crowdfunding so you know what you’re looking for, and then I’ll get to specific recommendations for you.

The Crowdfunding Industry

Collaboration on the web is an area of exponential growth. Crowdfunding, or collaborative funding via the web, is one of the standouts for growth in this evolving collaborative economy.

The Crowdfunding Industry Report by Massolution put out data showing the overall crowdfunding industry has raised $2.7 billion in 2012, across more than 1 million individual campaigns globally. In 2013 the industry is projected to grow to $5.1 billion.

Some of the most interesting developments in crowdfunding, which are expected to grow in the months and years ahead, include: investment crowdfunding (becoming a shareholder in a company), localization (funding focused on participants in specific cities and neighborhoods), mobile solutions, and group-based approaches.

The JOBS Act that was passed in April of 2012 paved the way to investment crowdfunding, but the JOBS Act Rulings by the SEC have yet to be fully implemented to formally kick the market off. Expect big movement and activity in this area in 2013 and 2014.

Crowdfunding Models

There are 2 main models or types of crowdfunding. The first is what’s called donation-based funding. The birth of crowdfunding has come through this model, where funders donate via a collaborative goal based process in return for products, perks or rewards.

The second and more recent model is investment crowdfunding, where businesses seeking capital sell ownership stakes online in the form of equity or debt. In this model, individuals who fund become owners or shareholders and have a potential for financial return, unlike in the donation model.

Crowdfunding Sites To Choose From

Business owners are using different crowdfunding sites than musicians. Musicians are using different sites from causes and charities. Below is a list of crowdfunding sites that have different models and focuses. This list can help you find the right place for your crowdfunding goals and needs.

1. Kickstarter
Kickstarter is a site where creative projects raise donation-based funding. These projects can range from new creative products, like an art installation, to a cool watch, to pre-selling a music album. It’s not for businesses, causes, charities, or personal financing needs. Kickstarter is one of the earlier platforms, and has experienced strong growth and many break-out large campaigns in the last few years.

2. Indiegogo
While Kickstarter maintains a tighter focus and curates the creative projects approved on its site, Indiegogo approves donation-based fundraising campaigns for most anything — music, hobbyists, personal finance needs, charities and whatever else you could think of (except investment). They have had international growth because of their flexibility, broad approach and their early start in the industry.

3. Crowdfunder

Crowdfunder is the crowdfunding platform for businesses, with a growing social network of investors, tech startups, small businesses, and social enterprises (financially sustainable/profitable businesses with social impact goals).

Crowdfunder offers a blend of donation-based and investment crowdfunding from individuals and angel investors, and was a leading participant in the JOBS Act legislation. The company has localized crowdfunding and investment to help develop entrepreneurial ecosystems and access to capital outside Silicon Valley. Its unique CROWDFUNDx initiative in cities across the US and Mexico connects local investors with local entrepreneurs both online and offline, and does the work to validate top local companies in each city across the US and Mexico.

4. RocketHub
Rockethub powers donation-based funding for a wide variety of creative projects.

What’s unique about RocketHub is their FuelPad and LaunchPad programs that help campaign owners and potential promotion and marketing partners connect and collaborate for the success of a campaign.

5. Crowdrise
Crowdrise is a place for donation-based funding for Causes and Charity. They’ve attracted a community of do-gooders and and fund all kinds of inspiring causes and needs.

A unique Points System on Crowdrise helps track and reveal how much charitable impact members and organizations are making.

6. Somolend
Somolend is a site for lending for small businesses in the US, providing debt-based investment funding to qualified businesses with existing operations and revenue. Somolend has partnered with banks to provide loans, as well as helping small business owners bring their friends and family into the effort.

With their Midwest roots, a strong founder who was a leading participant in the JOBS Act legislation, and their focus and lead in the local small business market, Somolend has begun expanding into multiple cities and markets in the US.

7. appbackr
If you want to build the next new mobile app and are seeking donation-based funding to get things off the ground or growing, then check out appbackr and their niche community for mobile app development.

8. AngelList
If you’re a tech startup with a shiny lead investor already signed on, or looking for for Silicon Valley momentum, then there are angels and institutions finding investments through AngelList. For a long while AngelList didn’t say that they did crowdfunding, which makes sense as they have catered to the investment establishment in tech startups, but now they’re getting into the game. The accredited investors and institutions on AngelList have been funding a growing number of select tech startup deals.

9. Invested.in
You might want to create your own crowdfunding community to support donation-based fundraising for a specific group or niche in the market. Invested.in is a Venice, CA based company that is a top name “white label” software provider, giving you the tools to get started and grow your own.

10. Quirky
If you’re an inventor, maker, or tinkerer of some kind then Quirky is a place to collaborate and crowdfund for donation-based funding with a community of other like-minded folks. Their site digs deeper into helping the process of bringing an invention or product to life, allowing community participation in the process.

These 10 crowdfunding sites cover most campaign types or funding goals you might have. Whether you’re looking to fundraise or not, go check out the sites here that grab your attention and get involved in this collaborative community.

How Crowdfunding Is Shaping A New Economy

Crowdfunding has revitalized the Arts at a time when public programs that support it are steadily dying off.

Crowdfunding is growing a market for impact investing in social enterprises, marrying the worlds of entrepreneurship and philanthropy, and helping a broader base of investors to back companies for both profits and purpose.

Crowdfunding is accelerating angel investing and creating an entirely new market for investment crowdfunding for businesses.

So get involved and join a crowdfunding community today. You’ll make a difference for a project or business owner, and also help build a new and more collaborative economy.

*Disclosure: I’m the CEO of Crowdfunder and have personal relationships with many of the founders and teams at the sites listed, though I stand behind my picks here as guidance of value for people looking for the right site. –

5 best and worst rental return markets | 2014-04-01 | HousingWire

 

 

San Francisco - Bridge

 

Home prices have increased year-over-year for two years straight and do not show any signs of slowing down, the latest CoreLogic report revealed. So how does this impact the rental community and investors?

 

While strong cash-flowing rentals are in many U.S. markets, rising home prices are slowly put a dent in the value.

This follow a strong rise in demand for REO-to-rental securitization.

 

RealtyTrac composed a list of the 5 best and worst markets for rental returns.

 

The list was created by taking the 2014 fair market rent for a three-bedroom home multiplied by 12 months and then dividing that 12-month total by the median sales price of residential properties in the county.

 

Here is what they came up with:

Best:

 

5. Baltimore City County, Md.

 

Media sales price: $85,000

 

The average fair market rent sits at $1,599, and the annual gross yield is 23%.

 

4. Bibb County, Ga.  

 

Median sales price: $50,880

 

On the lower end of the best five, the average fair market rent is $1,008 and the annual gross yield is 24%.

 

3. Washington County, Miss.

 

Median sales price: $42,000

 

The county’s average fair market rent comes in at $862, posting a 25% annual gross yield.

 

2. Clayton County, Ga.

 

Median sales price: $50,750

 

Ranking in at number two, Clayton’s average fair market rent is $1,187, and the annual gross yield is 28%.

 

1. Wayne County, Mich.

 

Median sales price: $44,900

 

As the best rental market for rental returns, Wayne County posts an average fair market rent of $1,124 and an annual gross yield of 30%.

 

skyline
Now for the 5 worst markets for rental returns:

 

5. Marin County, Calif.

 

Median sales price: $745,000

 

The average fair market rent sits at $2,657, while the annual gross yield comes in at 4%.

 

4. Kings County, N.Y.

 

Median sales price: $573,000

 

One of two New York markets on the list, Kings County reported an average fair market rent of $1,852 and an annual gross yield of 4%.

 

3. San Francisco County, Calif.

 

Median sales price: $573,000

 

Significant above number 4, the average fair market rent hit $2,657, with a 4% annual gross yield.

 

2. Eagle County, Colo.

 

Median sales price: $525,000

 

This Colorado market recorded a $1,545 average fair market rent and a 4% annual gross yield.

 

1. New York, N.Y.

 

home

 

Median sales price: $887,000

 

Holding the spot for the worst market for rental returns, New York posted a $1,852 average fair market rent and a 3% annual gross yield.

 

Fannie Mae and Freddie Mac must not Die: Bove

by:

Mar 25 2014, 9:46AM

The current plan to wind down Fannie Mae and Freddie Mac would result in lower housing prices for everyone. It would harm the United States economy by lowering growth. It would increase unemployment.

Despite this probability, the president and Congress seem to be intent on killing these companies – and the media and public do not seem to care. The prevalent belief is that these are failed companies with failed structures that exacerbated the American housing crisis that flared up in 2008 and therefore they must be expunged from the system.

In fact, the opposite is true. For eight decades, the system that they represent was successful in allowing tens of millions of Americans to own their own homes. The system was abused by politicians, regulators, and bankers beginning in the mid-1990s and this led to the downfall of these two giant companies. It was not structure but political and financial interference with proper underwriting that created their difficulties. The reaction to these misdeeds is to eliminate these companies without considering what this will do to housing and beyond housing, the economy.

Consider the current proposals, in Washington D.C.:

  • One set of ideas would result in the elimination of the 20- and 30-year self-amortizing mortgage.
  • Another concept would result in increasing the federal debt ceiling by more than $5.3 trillion and maintaining pressure to keep raising it going forward.
  • Another option would wipe away $350 billion of tax payer equity.
  • Other ideas would result in the complete nationalization of the housing finance industry.

What is certain is that under every one of the proposals, the concept of every American owing his or her own home is now gone. The result will be to create neighborhoods of rental units – or in my view, instant slums. Given the risks implied by the current proposals, one would think that Americans would want to know more about what is happening to home finance or, more specifically, the price of their homes. To date they are not interested – and neither is the media.

It is probable that the housing industry in the United States is the nation’s most subsidized sector. The problem, of course is how do we get from the most heavily subsidized system of home finance in the western world to a system that is not subsidized at all? Clearly if the transition is not handled properly, major dislocations will emerge and these dislocations will be very painful to all Americans.

If the current plan from the U.S. Treasury clears Congress and the courts, two things will happen: Fannie Mae and Freddie Mac will stop functioning on January 1, 2018; they will then enter a liquidation phase that may take at least 10 years.

This will not be good for anyone in this country. If there is no Fannie Mae and Freddie Mac, no bank will be willing to make 20- or 30-year self-amortizing mortgages. I have spoken to at least a dozen banks who feel very strongly about this issue – they just don’t view mortgage lending as the profit center it once was in the past. It’s more of a loss-leader to attract customers and cross-sell them other products.

Banks will simply be unwilling to put 30-year self-amortizing mortgages on their balance sheets, particularly at today’s interest rates. They will be willing to make 10- and 15-year adjustable-rate loans. The math here is frightening. The median income of American households is approximately $51,000. Under the new qualified mortgage rules, if you want to buy a home:

  • You must make a down payment equal to 20 percent of the value of the home to be purchased.
  • You are not allowed to pay more than 40 percent of your household income to meet principal and interest payments.

So, if the homeowner obtains a 30-year mortgage at a 4.25-percent fixed rate, then he/she/they can afford a home worth approximately $435,000. Conversely, if all they could get was a 10-year adjustable-rate mortgage at 6.25 percent (the average over the past 20 years), they could only afford a house worth $345,000 – a drop of $90,000.

You can play with the numbers any way you want but the bottom line is always the same: Affordability drops. Housing prices must come down. Moreover, if the American banks adopt the mortgage systems widely used in Canada, the 3-5-year balloon mortgage will be back.

Of course, no one believes that this will ever happen. However, they need to think again. The program to eliminate Fannie Mae and Freddie Mac is already in place. Unless Congress acts or the courts throw out the U.S. Treasury’s plan, the price of every home in the United States is about to fall. After the fact, people will care and the media will awaken from its somnolent state.

What should be done

To me it is very clear that the following should be done to minimize the impact of the government’s withdrawal from the home finance industry.

  • The conservatorship controlling Fannie Mae and Freddie Mac should be eliminated.
  • The companies should be returned to private sector ownership.
  • The government should exercise its warrants and sell the stock in the open market.
  • The dividend on the Series A preferreds should be returned to 10 percent.
  • The two companies should have as their mission:
    1) The elimination of their owned portfolios
    2) The expansion of their insurance roles without the full faith and credit of the nation behind this insurance
    3) The requirement that they give preference to insuring long duration fixed rate mortgages
  • The Senior Preferred Stock should be placed in a new trust dedicated to funding low-income housing.

None of this requires congressional or court actions. The president is able to do it by fiat. There is no massive government takeover of the housing finance industry and more importantly no massive bureaucracy created. It is simple, low cost, and would avoid disrupting the American public by forcing the prices of their homes lower.

– By Richard X. Bove

Richard X. Bove is an equity research analyst at Rafferty Capital Markets and the author of “Guardians of Prosperity: Why America Needs Big Banks,” which is due out on Dec. 26.

Refinancing Mortgage: The Secret To Saving Thousands On Your Mortgage |

 

 

Have you conducted a home loan health check lately? You might be surprised if you find out that despite getting a pretty good loan back then, there is still some room for you to save. The solution does not lie on your current home loan. What you might want to do is try to look at what’s out there for you if you wish to find ways to reduce your monthly mortgage costs.

 

Mortgage

 

A lot of people today are actually dealing with higher interest rates, which mean they have to pay bigger interest payments. The situation is the perfect time to find a better deal in the market. And once the opportunity to refinance to a better mortgage product reveals itself, you don’t let it pass. However, you do need to consult with your lender or a separate mortgage expert regarding your situation. Refinancing mortgage, just like other home loan solutions, has advantages and disadvantages. Before you can refinance, you will have to deal with the refinancing costs which will be comprised most likely of exit fees and several other charges your lender might impose.

 

Benefits of Refinancing to a New Loan

 

Refinancing to a new loan has other advantages aside from the obvious fact that of allowing people to lower their mortgage costs. Refinancing loans allows you to use the equity stored in your home as guarantee for a new loan. You can use the loan to fund the renovation and of your property. You can also purchase an investment property if you want using the funds you get from the refinancing home loan. Last but not the least, refinancing allows you to easily consolidate your loans as well as unsecured debts (e.g. credit card and personal loan) into one so you won’t have to pay high interest rates. The best thing about debt consolidation is that it makes debt management easy because you only have to manage a single account.

 

You can take advantage of refinancing when the interest rates are down. Once you have secured a loan, you can lock it in fixed rate for 15 to 30 years in order to preserve the low interest rate. When the rates go up, you’ll be saving a lot compared to those with variable rate loans. However, refinancing to a variable rate loan is the better option if you are not permanently settling in your home.

 

Refinancing mortgage takes you back to step one when you first applied for a mortgage. And if you remember, you need to have a cautious approach because you do not want to defeat the purpose of your refinancing. Simply put it, it’s buying your first all over again, which means you might encounter the same obstacles and procedures.

By  Robert  Charlson

Ocwen stock brushes off more headline risk

Pile of Money

Easily survives spate of negative news

March 19, 2014

Ocwen Financial Corp. (OCN) is set to pay $268 million to California residents as part of $2.1 billion settlement of a Consumer Financial Protection Bureau investigation into its servicing practices.

According to the San Francisco Business Times, the California Department of Business Oversight recently made the announcement.

Despite this, and other recent negative headlines, Ocwen stock is holding steady.

“Deceptions and shortcuts in mortgage servicing will not be tolerated,” said CFPB Director Richard Cordray when the settlement was initially announced in December. “Ocwen took advantage of borrowers at every stage of the process. Today’s action sends a clear message that we will be vigilant about making sure that consumers are treated with the respect, dignity, and fairness they deserve.”

Ocwen’s stock was slightly down for the day, closing at 40.59. That price is down 0.10 points from Tuesday’s closing price of 40.69.

Ocwen is part of the HW 30, HousingWire’s proprietary index of 30 key housing finance-focused stocks. The HW 30 was down 0.86 points (-.08%) after rising by nearly 3.5 points (0.32%) earlier in the day’s trading.

Most of the HW 30 was down as were all the major market indices upon news of the Federal Reserve Bank’s announcement to continue the taper.

Two of the companies on the HW 30 didn’t take the day’s news too hard.

Zillow, Inc. (Z) was the highest gainer amongst the HW 30, rising 2.3% over the previous day’s closing price. Trulia, Inc. (TRLA) was also up by 2.0%.

Lennar Corp. (LEN) was also up for the day by 1.82%.

Zillow: Sell on the West Coast, buy on the East Coast | 2014-03-19 | HousingWire

San Francisco - Bridge

Here are the top housing markets right now

March 19, 2014

If you are looking to sell your home, living on the West Coast drastically gives you the upper hand on selling power as spring home shopping season heats up. According to Zillow’s latest analysis of national buyers and sellers markets, sellers in the West have better odds selling their home, compared to buyers in the Midwestern and East Coast, who face less competition for buying a home.

“The real estate data in markets on both coasts are telling markedly different stories. Relatively strong job markets in the West are helping spur robust demand, which is being met with limited supply, causing rapid home value appreciation and giving sellers an edge,” said Zillow Chief Economist Stan Humphries.

“In the East, housing markets are appreciating a bit more slowly, and homes are staying on the market longer, which helps give buyers the upper hand,” Humphries added.

As a result, Humphries explained that buyers in sellers’ markets this spring can expect tight inventory, increased competition and a greater sense of urgency. In comparison, sellers in buyers’ markets may need to be prepared to lower their asking price, or to wait longer for the perfect buyer to come along.

As a result, Zillow comprised this list of the top five seller and buyer markets.

Top 5 seller markets

1. San Jose, Calif.

As the top selling market, San Jose boasts a $748,800 Zillow home value index, compared to a $2,819 Zillow rent index. Year-over-year the ZHVI changed 13.5%.

2. San Francisco, Calif.

The city home to the Golden Gate Bridge recorded a $648,700 ZHVI, a 17.7% year-over-year change. Meanwhile, the city posted a $2,676 ZRI.

3. San Antonio, Texas

San Antonio is the city furthest to the east and posted a $152,400 ZHVI, a 4.3% year-over-year change, and a $1,249 ZRI.

California

4. Los Angeles, Calif.

Los Angeles hit a $503,400 ZHVI, which is a 16% year-over-year change. Plus, the busy city posted a $2,356 ZRI.

5. Seattle, Wash.

Just south of Canada and home of Zillow, Seattle recorded a $312,400 ZHVI, a 9.7% year-over-year change, and a $1,751 ZRI.

Top 5 buyer markets

1. Cleveland, Ohio

Ranking as the number one buyers market, Cleveland recorded a $115,000 ZHVI, a .7% year-over-year change, and a $1,127 ZRI.

2. Philadelphia, Penn.

As one of two cities in Pennsylvania, Philadelphia posted a $193,000 ZHVI, a 2.4% year-over-year change, and a $1,517 ZRI.

3. Tampa, Fla.

Tampa, located in the Sunshine State, reported a  $135,900 ZHVI and a $1,226 ZRI. This represents 15.3% year-over-year change in ZHVI.

Illinois

4. Chicago, Ill.

Chicago reached a $177,800 ZHVI, a 8.3% year-over-year change, and a $1,615 ZRI.

5. Pittsburgh, Penn.

Barely making the top five list and the second city in Pennsylvania, Pittsburgh posted a $119,600 ZHVI, a 5.1% year-over-year change, and a $1,070 ZRI.

Fallout From Refinancing – NYTimes.com

 

 

Credit The New York Times

 

 

Homeowners who refinanced when fixed mortgage rates dropped below 4 percent will be less inclined to put their homes on the market as interest rates climb. And as a result, the limited property supply already impeding sales in many markets may not ease anytime soon.

A recent survey by Redfin, a national real estate brokerage based in Seattle, suggests that even those beneficiaries of low-refinance rates who do decide to move may want to make money renting out their homes while waiting for prices to rise, rather than sell right away.

Redfin questioned 1,900 people nationwide who said they planned to buy a home within a year; 42 percent said they already owned one, and of those, 39 percent said they planned to rent it out after they moved. The survey also asked buyers about their frustrations with the process, and “low inventory” topped the list.

 

 

Market dynamics are encouraging owners to keep their homes off the market for now, said Anthony Hsieh, the chief executive of loanDepot, a mortgage lender. “The rental market is very, very healthy today because a lot of Americans are locked out of the mortgage market,” he said. “And there is the promise that real estate is going to appreciate, because we’re just coming out of a deep recession.”

Of course, most borrowers can’t afford to buy another home without using equity from their first for a down payment. But Mr. Hsieh says that those who were able to take advantage of low refinance rates tend to be “premium consumers,” with very good credit and stable, above-average incomes.

“These are the folks that will think twice before they pay off that mortgage that is such cheap money,” he said. “They’re going to explore all types of options before they do that.”

They may want to consider a few other factors before taking on tenants, said Jed Kolko, the chief economist of Trulia, an online marketplace for residential real estate. First is the effort involved in managing a rental property. Second is the greater financial risk of owning two homes in the same market should home prices take a dive. And third is the changing nature of what’s driving rents.

“Over the past several years,” Mr. Kolko said, “the strong demand for renting single-family homes has been driven by people who lost homes to foreclosure but still wanted to stay in the same area. But now it is more driven by young people, and they are more urban focused.”

Patric H. Hendershott, a senior research fellow at the Institute for Housing Studies at DePaul University in Chicago, says he has witnessed the current allure of being a landlord firsthand. He lives in a housing community for older people, and he has recently noticed that residents who are moving to larger units are choosing to rent out their smaller ones.

But he views another scenario as more likely for low-rate holders: Those who can’t afford to move on without selling will essentially be “locked into” their homes. As interest rates rise, even buying another home at the same price will result in a higher mortgage payment.

In a recent analysis of the effect of lock-ins, Mr. Hendershott predicted that if rates continue to rise, the result will be substantial declines in housing turnover in strong housing markets, in which large numbers of households refinanced at low rates.

“We had a big episode of this in the 1980s,” he said, recalling when soaring interest rates locked in large numbers of homeowners.

Research cited in his analysis found that during that period, household mobility declined by 15 percent for every 2 percent increase in rates.

 

California Congressman on REO-to-rental warpath

 

Takano pushing four federal bodies to investigate

 

 

Congress

 

Longtime critic of REO-to-rental U.S. Rep. Mark Takano, D-Calif., is on the warpath Thursday, firing off letters to four federal entities asking for a detailed investigation into the growth of REO operations and REO-to-rental as an investment — and what they are doing to effectively regulate the emerging asset class.

Takano sent letters Thursday morning to the Consumer Financial Protection Bureau, the U.S. Department of Housing and Urban Development, the U.S. Securities and Exchange Commission, and Treasury Office of Financial Research.

Takano is concerned that rental prices are going up, and a surplus of investors in rentals — along with new rental-backed securities deals — could have the effect of artificially raising rental prices, making housing even more costly in parts of California and elsewhere.

Takano cites a Federal Reserve report, which claims if unchecked, investor activity in local housing markets may lower the quality of neighborhoods, while pushing up prices.

Investor purchasers have been an outsized figure in recent years in housing. Normally, about 85% of home sales are individuals purchasing with a mortgage, about 10% are all-cash sales, and about 3-5% are distressed sales. In 2013, something like 40% of home sales were individuals using a mortgage, 40% were all-cash, more than about 15% were distressed sales and 5% were flips.

Takano’s office wants a number of detailed questions investigated by the federal entities, including clarification on how single-family rental bonds are structured, what their metrics are, how their performance criteria could affect operations, and what is the risk that when bonds mature, the borrower would be unable to refinance the bonds and be forced to sell properties to repay bondholders.

From the SEC, Takano wants to know details about the investors who are purchasing the bonds, how the riskier tranches are sold and whether they are being re-packaged into collateralized debt obligations and resold with higher ratings.

He wants the CFPB to provide a list of local housing markets with high concentrations of rental properties linked to rental-backed securities, and analysis of common trends within these communities, so that they can examine the impact of REO-to-rentals and rental-backed securities on mortgage credit availability, rental prices, and housing prices in highly impacted communities.

Further, he wants the CFPB to perform a comparison between the rehabilitation, ongoing maintenance, and management costs that large investors spend on REO-to-rental properties with other actors, and how that impacts local neighborhoods.

From HUD and the Federal Housing Administration, Takano is asking for detailed information about the impact of large investor purchasers on first-time homebuyers’ ability to enter the market, and an evaluation of trends in FHA-approved mortgages in impacted communities.

To date only two REO-to-rental deals have been securitized.

Blackstone Group (BX) spent the past two years building an expansive portfolio of single-family rental homes via subsidiary Invitation Homes, spending $7.5 billion to acquire 40,000 houses. Blackstone then packaged rental income from single-family homes into a pass-through security, which is functionally not unlike a mortgaged-backed security.

Goldman Sachs (GS) started coverage on American Homes 4 Rent at a neutral rating and a price target of $18, reports say. American Homes 4 Rent has spent some $3.5 billion to acquire more than 21,000 rental homes.

“If vacancy rates rise or renters are unable to pay their rent, Blackstone and others may be forced to sell off vast amounts of property to make their investors whole,” Takano explained. “Selling a large amount of properties quickly would not only deprive renters of their home, but destabilize the market for homebuyers and send housing prices into a freefall.”

Jed Kolko, chief economist with Trulia, told HousingWire that the outsized and growing number of single-family rentals’ affect on rental rates in general is negligible.

Using American Community Survey data from 2005 and 2012, Kolko looked at the change in metro housing units that were single-family rentals.

Most metros had a large increase in the share of their housing stock that was single-family rentals. Among the 100 largest metros, Kolko looked at the top 10 with the biggest increases in institutional investments (from one to ten) – Las Vegas, Nev.; Phoenix, Ariz.; Cape Coral-Fort Myers, Fla.; Memphis, Tenn.; Riverside-San Bernadino, Calif.; Tuscon, Ariz.; El Paso, Texas; Lakeland-Winter Haven, Fla.; Fresno, Calif., and Sarasota, Fla.

 

Full Work Week and Rate Rally Boost Mortgage Apps

 

Mar 5 2014, 8:45AM

The volume of mortgage applications increased during the week ended February 28 for the first time since late January.  This good news was muted slightly by the fact that the previous week had been a holiday for many with government offices and schools closed.

The Mortgage Bankers Association said its Market Composite Index increased 9.4 percent on a seasonally adjusted basis from the week ended February 21 and 11 percent on an unadjusted basis.  The seasonally adjusted Purchase Index was 9 percent higher than the previous week but MBA noted that week was not adjusted to account for the President’s Day holiday.  The seasonally adjusted Purchase Index during the most recent week was 6 percent above the level during the last non-holiday week which ended February 14.  The unadjusted Purchase Index was 19 percent lower than during the same week in 2013.

Purchase Index vs 30 Yr Fixed

The Refinance Index was up 10 percent from the holiday week but was 3 percent lower than two weeks earlier.  Refinancing had a market share of 57.7 percent compared to 58 percent the previous week, the lowest since last September.

Refinance Index vs 30 Yr Fixed

Both average contract and effective rates decreased last week for all mortgage products.  The average contract interest rate for a 30-year fixed-rate mortgage (FRM) with a conforming loan balance of $417,000 or less decreased to 4.47 percent with 0.28 point.  The previous week the rate was 4.53 percent with 0.31 point.

Jumbo 30-year FRM (loan balances in excess of $417,000) had an average rate of 4.37 percent, 10 basis points below the average rate the previous week.  Points increased to 0.20 from 0.13.

Thirty-year FRM carrying FHA guarantees had an average rate of 4.13 percent with 0.13 point.  The previous week the average rate was 4.17 percent with 0.20 point.

The rate for 15-year FRM was 3.52 percent, down 4 basis points from the previous week.  Points decreased to 0.18 from 0.28.

Adjustable rate mortgages (ARM) held at an 8 percent share of mortgage applications for the fifth straight week.  The contract rate for the most widely offered ARM, the 5/1 hybrid, was 3.09 percent with 0.38 point.  The rate the previous week was 3.17 percent with 0.31 point.

MBA’s Weekly Mortgage Application Survey has been conducted since 1990.  It surveys mortgage bankers, commercial banks, and thrifts and covers over 75 percent of U.S. retail residential mortgage applications.  Base period and value for all indexes is March 16, 1990.  Interest rates are quoted for 80 percent loan-to-value ratio loans and points include the origination fee.


You have probably been hearing about Bitcoin in the news, but finally, you can do something useful…

Welcome and thank you for your interest in QoinPro.com. Starting today, you will receive free bitcoins, litecoins and feathercoins in your balance plus any other coins that may have been unlocked.

On top of the free daily coins you receive (see below), we’ve credited a one-time0.00000250 to your Bitcoin balance, 0.00007672 to your Litecoin balance, 0.00604839 to your FeatherCoin balance, 97.85271991 to your FedoraCoin balance and 5.68181818 to your InfiniteCoin balancesimply for signing up. It’s our way of saying “Thank you”.

Every day (including weekends) the following coins will automatically be added to your (and your friends) balances:

Bitcoin: 0.00000001 BTC * Bonuses
Litecoin: 0.00000031 LTC * Bonuses
FeatherCoin: 0.00002419 FTC * Bonuses

Bonuses are permanent and range from 0.1% to 1250%. They can be earned in several ways and we’re adding new ways all the time. One of the fastest way to increase bonuses is to refer your friends
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http://qoinpro.com/00f747615317b4224f9510b84840f33e

For example, if you’ve invited 11 friends, your daily bonus is +15%, meaning you will receive 15% more bitcoins, litecoins and feathercoins every day.

Remember, you also earn a percentage of whatever your friends (and their friends, and their friends) receive from us. Up to 7 levels deep.

You can view your balances by logging in to our website and clicking on the “Balances” item in the top menu. Once you reach the coin specific thresholds you can withdraw the coins to another wallet.

 

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