Monday Morning Cup of Coffee takes a look at news coming across the HousingWire weekend desk, with more coverage to come on bigger issues.
Three former officers of the IndyMac homebuilder division were found liable by a jury on Friday for more than $168 million for negligently lending to developers who were unlikely to repay millions of dollars in loans.
The Federal Deposit Insurance Corp brought a civil lawsuit against the officers in 2010 in its capacity as receiver for the now-defunct IndyMac.
The trial lasted around one month.
Three former executives of the Pasadena, Calif.-based housing lender are being charged with negligence in approving 23 ill-advised homebuilder loans.
Scott Van Dellen, Richard Koon and Kenneth Shellem oversaw IndyMac’s homebuilder division and will pay the damages. It’s small payback, the FDIC lost billions on the ultimate failure of IndyMac.
SeekingAlpha provides an investor’s quickquide to putting money into the improving housing makret. It’s lists several watch items. Housing stocks, the cost of the lumber, electrical wiring and concrete are all given the once over.
“The homebuilding industry may have seen a sharp increase over the past year, but many analysts believe that there could be significantly more upside potential,” the article concludes.
“Investors should keep an eye on leading indicators for the industry, like railcar volumes and new building permits, to determine whether or not these trends will continue through next year,” it says.
The race is on to finalize short sales and seal the deal on mortgage reductions as the Dec. 31 expiration of a massive tax break for crammed down mortgage debt, according to Kimberly Miller, Palm Beach Post.
Short sales in which homeowners fell behind on mortgage payments but were not in foreclosure leaped 22% in 2012, according to a report released by RealtyTrac.
But the sunset of the federal Mortgage Forgiveness Debt Relief Act means borrowers, who have been spared tens of thousands of dollars depending on the amount forgiven and their tax bracket, may be faced with whopping IRS bills after losing their home, the article states.
Barclays Capital updated home price forecasts underlying the RMBS prepayment and credit models with CoreLogic home price index data through the third quarter. And it’s good news.
“We expect aggregate HPI to rise 5.5% in 2012 and 3-4% for the next several years,” write analysts Robert Tayon and Chun Lin.
“Formerly distressed markets are leading the recovery, as they emerge from under the weight of distressed inventory with attractive valuations,” they said.
The FDIC closed no banks this weekend.
jgaffney@housingwire.com
