Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-63146 Mon, 16 Oct 2017 17:04:17 GMT HSBC Tries To Sell Stake in Times Square Office Tower, Once Lost By Macklowe, for $445M (VALUED ABT. $250 mln in 2010) http://implode-explode.com/viewnews/2017-10-16_HSBCTriesToSellStakeinTimesSquareOfficeTowerOnceLostByMacklowefo.html

According to The Real Deal, "The 44-story tower was built in 1990 as the headquarters of German publisher Bertelsmann. In 2006, Vornado Realty Trust bought the retail space for $260 million. A year later, Harry Macklowe paid the Blackstone Group $830 million for the office portion of the property. Macklowe lost the property to his lender, Deutsche Bank, which sold it to CBRE Global Investors."

... In 2010, a 49 percent stake in the property was purchased by HSBC, in a deal that valued the office space at $520 million. Then in 2011 the remaining 51 percent was acquired in a deal valuing it at $660 million, respectively. Adobe Systems, Viacom, Verizon, Pillsbury Winthrop and Duane Morris are among the tenants of the building.

We expect the results will not be great. The commercial market is definitely on the rocks, and an office tower just a flew blocks north of Times Square -- recently financed -- is already distressed (reported a few months ago).

]]>
iehi-feed-63145 Mon, 16 Oct 2017 15:22:05 GMT China's mortgage debt bubble raises spectre of 2007 US crisis http://implode-explode.com/viewnews/2017-10-16_Chinasmortgagedebtbubbleraisesspectreof2007UScrisis.html City residents in their 20s and 30s view property as a one-way bet because they've never known prices to drop. At the same time, property inflation has seen the real purchasing power of their money rapidly diminish.

"Almost all my friends born since the 1980s and 1990s are racing to buy homes, while those who already have one are planning to buy a second," Mai, 33, said. "Very few can be at ease when seeing rents and home prices rise so strongly, and they will continue to rise in a scary way."

...

The rush of millions young middle-class Chinese like Mai into the property market has created a hysteria that eerily resembles the housing crisis that struck the United States a decade ago. Thanks to the easy credit that has spurred the housing boom, many young Chinese have abandoned the frugal traditions of earlier generations and now lead a lifestyle beyond their financial means.

]]>
iehi-feed-63141 Sun, 15 Oct 2017 17:37:53 GMT The land of the permanent renter:  More single family homes are now rentals with households moving less http://implode-explode.com/viewnews/2017-10-15_ThelandofthepermanentrenterMoresinglefamilyhomesarenowrentalswit.html iehi-feed-63139 Sat, 14 Oct 2017 23:30:44 GMT Wells Fargo Reveals $1 bln Skeleton in Closet From Pre-Crisis Mortgages; Crummy General Results http://implode-explode.com/viewnews/2017-10-14_WellsFargoReveals1blnSkeletoninClosetFromPreCrisisMortgagesCrumm.html The company took a surprise $1 billion charge in the quarter for previously disclosed regulatory investigations into its pre-crisis mortgage activity, the third-largest U.S. lender said Friday in a statement. The expense pushed total costs to a record $14.4 billion.

...

The bank is one of the last firms not to have settled with regulators and the Justice Department over its handling of home loans in the run up to the housing crisis. It said in August that it was increasing its estimate for what it deemed "reasonably possible" legal charges beyond reserves in part because of "existing mortgage-related regulatory investigations."

...

Wells Fargo also had trouble in its underlying businesses. Revenue in the third-largest U.S. bank's community banking division, the home for all the lending it does to America's consumers, fell to $12.1 billion, the lowest since the quarter after news broke about the fake accounts. Net income in the unit, which generates the majority of Wells Fargo's profit, plunged 31 percent to $2.23 billion.

]]>
iehi-feed-63132 Fri, 13 Oct 2017 17:05:11 GMT Investors Head to Houston to Buy From Panicked Homeowners http://implode-explode.com/viewnews/2017-10-13_InvestorsHeadtoHoustontoBuyFromPanickedHomeowners.html Schild stops by a ranch-style house where 74-year-old Paul Matlock lives with his wife, disabled from multiple sclerosis. Matlock is desperate to leave and is considering Schild's offer of $120,000--half the home's value three weeks earlier. A half-dozen other investors have made offers, one as low as $55,000. "The whole thing makes me feel like there's a bunch of vultures sitting on my back fence," Matlock says. "They're waiting for the dead body to fall over."

...

The cycle begins with small-time investors such as Schild, who's bought more than 30 waterlogged houses for an average $175,000 apiece. Then Wall Street swoops in. Gary Beasley, former chief executive officer of Waypoint Homes, also sees an opportunity. He's pitching private equity firms and pension funds on the potential profit in buying flooded homes, repairing them, and renting them back to homeowners.

Bain Capital LP and billionaire Marc Benioff, co-founder of Salesforce.com Inc., are backing Beasley's two-year-old company, Roofstock Inc. It runs a website where investors can buy and sell single-family rental properties. Beasley thinks owner-occupants may be interested in selling there, too, and that flooded neighborhoods are the Next Big Thing. "It's much like the housing crisis, when the institutional guys came in to buy homes nobody wanted," he says. Like other investors, Beasley and Schild view themselves as helping homeowners to move on and Houston to rebuild.

]]>
iehi-feed-63107 Tue, 10 Oct 2017 00:20:07 GMT Credit Union National Association Sues Equifax Over Data Breach http://implode-explode.com/viewnews/2017-10-09_CreditUnionNationalAssociationSuesEquifaxOverDataBreach.html iehi-feed-63106 Mon, 09 Oct 2017 20:00:12 GMT Ganja Creates Real Estate Gold Rush In California http://implode-explode.com/viewnews/2017-10-09_GanjaCreatesRealEstateGoldRushInCalifornia.html iehi-feed-63104 Mon, 09 Oct 2017 14:03:54 GMT Feds Pursue Former Deutsche Bank Head of Subprime Trading http://implode-explode.com/viewnews/2017-10-09_FedsPursueFormerDeutscheBankHeadofSubprimeTrading.html iehi-feed-63085 Wed, 04 Oct 2017 12:29:56 GMT Equifax Awarded No Bid Fraud Prevention Contract By IRS http://implode-explode.com/viewnews/2017-10-04_EquifaxAwardedNoBidFraudPreventionContractByIRS.html iehi-feed-63077 Tue, 03 Oct 2017 17:23:01 GMT Manhattan Condos Are Barely Yielding More Than Government Treasuries http://implode-explode.com/viewnews/2017-10-03_ManhattanCondosAreBarelyYieldingMoreThanGovernmentTreasuries.html Manhattan condo buyers who rent out their apartments are getting little more yield than they would with government debt.

Newly purchased condos that were listed for lease in the second quarter brought their owners a median return of 2.5 percent, according to an analysis released Monday by property-listings website StreetEasy. It's been stuck at that level since the end of last year, the lowest in data going back to 2010. The median yield on relatively risk-free 10-year Treasury notes was 2.25 percent in the second quarter.

"This is the lowest point we've seen in history," Grant Long, a senior economist at StreetEasy, said in an interview. "It's a steady downward trend."

...

The investment thesis had promise in 2011, when rental yields peaked at 3.9 percent in the third quarter. But as developers added ever-pricier units to the skyline and the supply of rentals swelled, income prospects for those who buy and lease out condos have been diminishing fast.

...

In 2011, the median purchase price of condo units that became rentals during the third quarter was $899,000, StreetEasy said. In the second quarter of this year, investors who bought condos to lease out paid almost double that amount -- a median of $1.7 million.

]]>
iehi-feed-63069 Sun, 01 Oct 2017 03:18:56 GMT Wells Fargo Bank Teller Stole $185,000 From Homeless Customer http://implode-explode.com/viewnews/2017-09-30_WellsFargoBankTellerStole185000FromHomelessCustomer.html iehi-feed-63063 Fri, 29 Sep 2017 00:01:29 GMT Fight Erupts to Shield Tax Breaks Threatened by G.O.P. Overhaul (INCL.: RE-IND. WANTS TO AXE STD. DED. INCREASE TO KEEP MI-DED. ATTRACTIVE(!)) http://implode-explode.com/viewnews/2017-09-28_FightEruptstoShieldTaxBreaksThreatenedbyGOPOverhaulINCLREINDWANT.html Opposition from the real estate industry was swift and vocal, with trade groups strongly criticizing elements of the plan that they say will make home-buying less attractive and weaken the housing market. While the plan specifically calls for preserving the mortgage interest deduction, real estate agents are warning that a proposal to double the standard deduction will make taxpayers less likely to itemize their tax returns and claim the mortgage deduction.

The deduction is a key incentive for people to buy homes, since it reduces their taxable income by the amount of interest paid on a mortgage. Real estate agents worry that doubling the standard deduction may provide a richer tax break than itemizing and claiming the mortgage deduction.

...

A proposal to limit the deductibility of corporate interest has prompted jockeying among powerful groups that rely on debt to help finance their operations, including real estate companies, private equity firms, financial companies and other businesses.

...

The most politically fraught proposal is eliminating the state and local tax deduction, which allows taxpayers who itemize to write off their property, state and local taxes. The measure is particularly prized in blue states with high property taxes, but is also widely used in some Republican districts in Virginia, New Jersey and California.

Eliminating the deduction, which the real estate industry also opposes, would save more than $1 trillion over a decade and make room for the tax cuts. But Republican members of Congress in affected states have already expressed concern about the provision, and a plan that repeals the deduction could be impossible to pass.

...

For its part, the Trump administration is maintaining that surging economic growth produced by the tax cuts will prevent the plan from adding to the deficit, and that it will benefit middle-class families.

However, Mr. Trump's top economic adviser acknowledged in an interview with ABC News that it was too soon to make promises. It remains possible that some middle-class families could see their tax bills increase under the plan.

"There's an exception to every rule," said Gary D. Cohn, director of the National Economic Council. "I can't guarantee anything. You can always find a unique family somewhere."

]]>
iehi-feed-63060 Thu, 28 Sep 2017 19:15:19 GMT Employees Sue Antioxidant Drink Company Bai Brands, LLC For $1.7 Billion http://implode-explode.com/viewnews/2017-09-28_EmployeesSueAntioxidantDrinkCompanyBaiBrandsLLCFor17Billion.html iehi-feed-63058 Thu, 28 Sep 2017 14:55:02 GMT Stop sugarcoating the housing market: Economist warns that buyers face increasing troubles http://implode-explode.com/viewnews/2017-09-28_StopsugarcoatingthehousingmarketEconomistwarnsthatbuyersfaceincr.html Supply on the low end is tight because during the housing crash investors large and small bought hundreds of thousands of foreclosed properties and turned them into rentals. There are currently 8 million more renter-occupied homes than there were in 2007, the peak of the housing boom, according to the U.S. Census.

Investors could take the opportunity of high prices and high demand to sell these properties, but today's high rents offer them better returns.

Low supply of homes for sale might also seem like a great opportunity for the nation's homebuilders. Yes, they went through an epic housing crash, but they have since consolidated market share and righted their balance sheets. Homebuilders are simply not building enough inexpensive houses that the market needs.

]]>
iehi-feed-63056 Wed, 27 Sep 2017 19:24:46 GMT Experian Data Breach Has Consumers Disputing Information http://implode-explode.com/viewnews/2017-09-27_ExperianDataBreachHasConsumersDisputingInformation.html iehi-feed-63055 Wed, 27 Sep 2017 17:20:57 GMT Pending Home Sales Plunge; NAR Admits "The Housing Market Has Essentially Stalled" http://implode-explode.com/viewnews/2017-09-27_PendingHomeSalesPlungeNARAdmitsTheHousingMarketHasEssentiallySta.html iehi-feed-63050 Tue, 26 Sep 2017 23:36:22 GMT Student Loan Debt Is Keeping Millennials From Buying Real Estate http://implode-explode.com/viewnews/2017-09-26_StudentLoanDebtIsKeepingMillennialsFromBuyingRealEstate.html iehi-feed-63042 Tue, 26 Sep 2017 17:24:22 GMT HECM Rules Allow Spouses Of Reverse Mortgage Borrowers To Remain In The Home http://implode-explode.com/viewnews/2017-09-26_HECMRulesAllowSpousesOfReverseMortgageBorrowersToRemainInTheHome.html iehi-feed-63041 Tue, 26 Sep 2017 17:22:49 GMT How You Can Find Yourself Facing A Reverse Mortgage Foreclosure http://implode-explode.com/viewnews/2017-09-26_HowYouCanFindYourselfFacingAReverseMortgageForeclosure.html iehi-feed-63040 Tue, 26 Sep 2017 17:21:18 GMT New York Fraud Alert - America's Wholesale Lender http://implode-explode.com/viewnews/2017-09-26_NewYorkFraudAlertAmericasWholesaleLender.html