"Cendant's Real Estate Profits Soared 51 Percent in 3Q"
American Banker (11/09/98) P. 30; Brockman, Joshua

Cendant Corp. recently reported that earnings for its real estate division rose 51 percent to $197 million in the third quarter from a year ago. Mortgage revenue was up 55 percent, while revenue from Cendant's real estate franchises--which include Century 21, ERA, and Coldwell Banker--rose 29 percent to $126.7 million. Relocation revenues also rose, climbing 17 percent.

"A White Migration North From Miami"
Washington Post (11/09/98) P. A1; Booth, William

Miami is following in the footsteps of New York and Los Angeles, which have each lost 1 million U.S.-born residents in the last decade and have gained a million immigrants. The most recent Census Bureau data indicates that a white non-Hispanic leaves Miami-Dade County almost every time an immigrant moves to the market. "White migration to Miami-Dade has essentially stopped," says William Frey, demographer at the University of Michigan. In fact, the population of whites in the county has declined 16 percent in the 1990s. JA large number of the whites who are moving elsewhere are heading north to Broward County. From 1990 to 1997, the white non-Hispanic population of the county has soared to more than a million residents from 82,000. White migrants say they are attracted to Broward because homes are newer and larger, schools are less crowded, traffic and congestion is more manageable, and crime is not as rampant.

"Report: HUD Charged Too Much for Homes"
USA Today (11/09/98) P. 3A/1

According to a report in The Arizona Republic, the Department of Housing and Urban Development (HUD) has been selling thousands of homes for more than they are worth, despite the fact that HUD's mission is to find affordable housing for people who need it. The newspaper blamed congressional pressure to pay for its programs as the main reason why HUD recently took in approximately $50 million more, during a recent 12-month period, than what its own appraisals said properties were worth. Even worse, the sales were frequently to first-time homebuyers. Among the cities where such buyers paid inflated prices are Atlanta, Fort Worth, Phoenix, and Sacramento. HUD spokesperson Ira Peppercorn has vowed that the agency will cease to sell homes for more than they are worth.

"NAR Honors Capital Hill FHA Supporters With Legislative..."
PRNewswire (11/06/98)

The National Association of Realtors (NAR) is presenting its first annual "Realtors Legislative Leadership" awards to 12 members of Congress who were active in sponsoring NAR's top issues. This year's awards honor the legislators who were active in legislation increasing the FHA mortgage insurance limit to $197,620, which was included in the appropriations bill for the Department of Housing and Urban Development. NAR President R. Layne Morrill discussed the awards at the recent convention of the NAR, saying the legislation would not have been possible without the work of the legislators. The awards are "a small way to thank the lawmakers who went above and beyond the call of duty," said Dr. Lee L. Verstandig, senior vice president of government affairs for NAR.

"NAHB Projects Continued Strong Housing Market in 1999"
United Press International (11/04/98) ; Derby, Michael S.

According to the National Association of Home Builders, sustained strength of the American economy will help hold the housing market at a pace very near the expected record-year pace for 1998. While the economy is expected to drop from this year's highest point, new housing starts are forecast to decline slightly from an anticipated 1.6 million new starts this year, to an expected 1.47 million housing starts in 1999, stated David Seiders, chief economist for the NAHB. Available credit, continued growth in the gross domestic product and sustained interest rate cuts will all influence the 1999 housing market. The one negative factor Seiders cited as a potential threat to the housing market is the negative savings rate, a record indicating that consumer spending exceeds income.

"HUD Released the Results of Its Oct. 1 Survey ..."
Real Estate Finance Today (11/02/98) Vol. 15, No. 24; P. 16

The Department of Housing and Urban Development recently released the results of its secondary mortgage market survey of prices and rates. Yields for commitments on conventional loans for new and existing homes were down in every region by at least 20 basis points. The average FHA effective rate for the primary market was 6.70 percent. The study also showed that most homebuilders have a stable outlook, with an adequate supply of funds for FHA and conventional financing.

"1998's Hot Mortgage Markets"
Real Estate Finance Today (10/20/98) Vol. 15, No. 23; P. 14; Carey, Brian

Houston was recently named as the nation's hottest housing market, according to the Mortgage Bankers Association's Regional Mortgage Market Report. The purpose of the report was to determine mortgage market opportunity in several major markets based on a number of factors, like personal income, population and household growth, home sales and prices, housing affordability, and payroll employment. Houston's top position was attributed to a 50 percent increase in existing home sales over the last year and a half, a rise in housing appreciation, and increases in payroll employment and personal income growth. As a result, the market was considered affordable and a strong opportunity for mortgage lenders. Dallas was ranked second in mortgage market opportunity, led by a 12.2 percent increase in existing home sales and a 23 percent rise in home prices over the past two and a half years. At the same time, growth in personal income and payroll employment made housing affordability favorable. Phoenix was ranked third in the report, followed by Las Vegas, which fell to fourth after topping the list for four straight years. Home sales and prices in Las Vegas have been stagnant, but population and household growth give lenders a strong market of families to work with. Rounding out the top 10 were Denver, Tampa (which made the largest jump from 26th to sixth), Seattle, Atlanta, Omaha, and Jacksonville. There are a number of markets that appear to be moving up the list, including Louisville, Tucson, Memphis, and Milwaukee. But at the same time, Austin, Orlando, San Jose, and Portland all fell on the list.

"Mortgage Company Approves Technology"
Beyond Computing (10/01/98) Vol. 7, No. 8; P. 50; Robb, Drew

When independent mortgage lender Countrywide Home Loans wanted to rise above the competition by providing faster service, the company turned to IBM's technology. Countrywide installed a network of IBM AS/400 model 640 and 530 computers, which provided a cost-effective and scalable solution. The company's primary data repository is linked to production systems via an IBM OptiConnect/400 fiber optic environment. A connection has also been established to two AS/400e systems over a high-speed WAN. Database updates appear simultaneously on systems at various facilities, and because the systems are mirrored, they no longer have to shut down to do a backup. Perhaps most importantly, workload distribution ensures that the entire AS/400 network is being used to provide a high level of service. Countrywide vice president of systems architecture Robert Membrila says, "This level of availability justifies the cost of the replicated system." Countrywide has seen many benefits from implementing its tech strategy, and Membrila says the company will continue to pursue IT development as a key strategic element in expansion.

"The Choice Is Yours"
American Gas (10/98) Vol. 80, No. 9; P. 23; Paulson, S. Lawrence

According to a recent American Gas Association report, more than 30 percent of all residential natural gas customers already have or soon will have the freedom to select which companies supply their fuel. While theories that utility deregulation will drive down costs and lift customer satisfaction are largely speculative, information culled from customer polls, focus groups, and industry officials' own observations is now shedding some new light on the matter. Customer attitude surveys, for example, show that while only a third of the U.S. population last year was aware of the nation's utility restructuring movement, the number is notably higher than the 23 percent awareness rate documented in 1996. Customers expressed substantial doubt, though, that deregulation will generate savings; and because most are fairly satisfied with their current supplier, the issue of whether they would switch if given a choice is now in question. Hence the importance of price, according to an official with Cambridge Energy Research Association, which conducted a survey of customer attitudes in December. The string of pilot programs nationwide confirms the influence of rebates, signing bonuses, switching incentives, and other pricing strategies in gaining consumer attention. However, the pace and nature of customer choice will differ in each state, depending on a number of variables. Rick Harper of Portland, Ore.-based NW Natural, for instance, says the driving force behind competition at his company is not customer choice at all, but rather fuel choice.

Published: November 9, 1998

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