(Read More: Housing Recovery Leaves Some Behind)

The jumbo securitization market is tiny, however, as most jumbo loans are still held on bank balance sheets. There are so far just two players in jumbo securitizations, Redwood Trust Inc. and very recently Credit Suisse Group AG, although others, including JPMorgan Chase, are preparing to join them.

There were no jumbo securitizations at all between 2008 and 2010. When Redwood dipped its toes in, securitizations totaled less than $1 billion in 2010-2011. By 2012 they hit $3.5 billion, according to Inside Mortgage Finance, and are already at $2 billion so far for 2013. Hebron believes they could surge dramatically in the very near future.

The rebirth of jumbo securitizations is being driven not just by investor confidence, but by growth in jumbo originations, which increased after the conforming loan limit was lowered. Originations of non-agency jumbo mortgages jumped by over 19 percent in 2012 from 2011, according to Inside Mortgage Finance.

So why is the conforming-jumbo spread shrinking? Not because jumbo rates are falling but because conforming rates are rising due in part to government intervention.

“Congress keeps raiding the guarantee fees (g-fees) Fannie and Freddie charge lenders in the securitization process for other purposes, like funding payroll tax cuts,” noted Hebron. “For each 10 basis point hike in g-fees, we’ve seen consumer rates rise about 0.125 percent.

Article source: http://www.cnbc.com/id/100543189

Aug. 12 (Source: By Eve Mitchell, Contra Costa Times, Walnut Creek, Calif.) - When the country’s credit rating was downgraded, experts thought interest rates would shoot up, another jolt to the struggling real estate market.The opposite happened, but that good news has been offset by the stock market’s wild swings.

Low interest rates can attract homebuyers, but that is only one part of the decision, said Faramarz Moeen-Ziai, a mortgage banker with San Ramon-based Bank of Commerce. A healthy job market is more important.

“The primary factor driving a purchase decision is people’s income,” he said. “And until we see unemployment go down, we’re not going to see (an increase in homebuying).”

Refinancing is another matter, however, as homeowners who have adequate equity rush to take advantage of low interest rates. “In the last week, we’ve noticed a spike in refinancing,” said Moeen-Ziai, who estimated that volume has about tripled.

The past two weeks have certainly been a test for the Bay Area housing market. Wild stock swings, the credit downgrade and continuing concerns about the economy have certainly weighed on buyers, sellers and their agents.

Rebecca Gallardo with Protello Group Real Estate Services in San Jose said she had a client pull out of a deal “because of the volatility. He thinks he’ll get a better deal come December.”

But not everyone is spooked.

“The financial unrest of last week has not had an impact on my decision to buy a home. I still consider purchasing a home one of

the best investments I can make,” Matthew Le, a 26-year-old San Francisco renter who is looking to buy a home in Pleasant Hill, wrote in an email.

“I have not had a buyer walk,” said Joy Di Ricco, a Realtor with the Antioch office of Better Homes and Gardens Mason-McDuffie Real Estate.

Still, it’s important to communicate with buyers, Di Ricco added. “They’re nervous,” she said. “If you don’t communicate, you will lose your buyers.”

Before it was evident that interest rates would be heading south, Realtors said they fielded calls from some concerned clients.

Cathy Warshawsky of Bay Area Home Loans in San Jose said she had several clients who were “working like mad” with their Realtors over concerns that interest rates would go up. “They were really scrambling.”

But other agents were surprised by their clients’ calm.

“I thought a lot of my buyers would be calling me saying, ‘I’m frightened’ about this and that and the other. But actually my buyers are acting contrary to how I might have expected them to,” said Anne Walker, an agent with Coldwell Banker in Cupertino.

“There’s so much pent-up demand for purchasing real estate that people (who) are so strongly set in moving in the direction of purchasing, that no matter what happens with the stock market and the SP rating, it just doesn’t seem to be deterring them.”

Economic issues are of course a factor, but for many buyers the choice is really about a place to live.

“Buyers are still careful buyers,” said Kristine Marr, a senior loan officer with RPM Mortgage in Walnut Creek. They want to find the right home and that’s what’s driving the buyer mostly as long as they are preapproved and ready to buy,” she said.

Contact Eve Mitchell at 925-952-2690 or emitchell@bayareanewsgroup.com.

Source: By Eve Mitchell, Contra Costa Times, Walnut Creek, Calif.

To see more of the Contra Costa Times, or to subscribe to the newspaper, go to http://www.contracostatimes.com/.

Copyright (c) 2011, Contra Costa Times, Walnut Creek, Calif.

Distributed by McClatchy-Tribune Information Services.

For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com.

A service of YellowBrix, Inc. Publication date: 2011-08-12

<!–

Article source: http://www.loansafe.org/homebuyers-have-mixed-reactions-to-market-swings

Strategic Storage Trust Inc., a publicly registered non-traded real estate investment trust specializing in self-storage, recently acquired two properties in the San Francisco Bay Area, amounting to approximately 1,350 units, for $14.1 million. The new sites will be rebranded as SmartStop Self Storage locations.

“This acquisition represents our emerging growth in Northern California,” said H. Michael Schwartz, Strategic Storage Trust’s chairman and CEO. “We continue to target the San Francisco Bay Area due to its geographic diversification, strong economic market and a forecast of population expansion.”

The first property is located at a main residential intersection at 3480 Tennessee St. in the suburb of East Vallejo. The property contains approximately 75,000 rentable square feet with 860 units on roughly 4 acres of land. Built in 2001, the facility consists of seven single-story buildings with ground-level and drive-up access.

The second property is located at 222 San Pedro Ave. in Morgan Hill and contains 61,000 rentable square feet with 490 units on approximately 3 acres. Morgan Hill is in Santa Clara County, part of Silicon Valley, with easy access to U.S. Route 101 as well as Monterey Road, a major thoroughfare. Built in 1997, the facility consists of three single-story buildings with ground-level and drive-up access.

Aaron Swerdlin, senior managing director of mortgage banker Holliday, Fenoglio, Fowler L.P., represented the sellers in the transaction.

Since the launch of Strategic Storage Trust in 2008, the company’s portfolio of wholly-owned properties has expanded to include 61 properties in 16 U.S. states and Canada. The company’s sponsor is Strategic Capital Holdings LLC, which manages a growing portfolio of more than 7 million square feet of commercial properties, including 5.5 million square feet of self-storage, with a combined market value of more than $756 million.

Article source: http://www.insideselfstorage.com/news/2011/04/strategic-storage-trust-inc-acquires-2-bay-area-selfstorage-facilities.aspx