Chicago–The National Association of Realtors’ pending sales index grew 6.3 percent from March to 88.2 in April, Bloomberg reported Monday.Sales picked up considerably in regions where home prices have severely declined, the Chicago-based NAR said.”Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” said Lawrence Yun, NAR chief economist.The NAR predicts that existing home sales will be at 5.40 million this year and 5.74 million in 2009. In 2007, 5.65 million existing homes were sold.Comprised using signed pre-existing home contracts, the April 2008…

McLean, Va.–Freddie Mac’s 2008 financial results will be stronger than its 2007 numbers, according to chief executive officer Richard Syron.Declining home prices and credit market issues have caused big losses at McLean, Va.-headquartered Freddie Mac, but guarantee-fee income growth and stronger mortgage pricing will help counteract deficits, The Wall Street Journal said Monday.”The revenue engine is showing more horsepower, thanks to volume and appropriate changes in credit terms and prices,” Syron said in a speech to stockholders Friday. “We are quite confident that the positive changes will offset the negative.”However, Freddie Mac said its 2008 loss provision may grow by…

Columbus, Ohio–Home equity loan defaults are increasing–highlighting how the financial crisis is transforming from large bank writedowns to lending issues at smaller banks like Huntington Bancshares in Columbus, Ohio, according to the Financial Times.Home equity loan defaults mean potential big problems for regional banks; if one folds, it may set off a series of mergers, the Times said.In the last six months, home equity loan-related losses have more than tripled to 1.54 percent of unresolved loan volumes.As home prices continue to decline in California and other states where some of the biggest home equity loan portfolios are located, defaults could…

New York–As the credit crisis continues, New York-based investment bank Lehman Brothers announced a $2.8 billion second quarter loss on Monday and said it will gather up to $6 billion in investor capital.The losses were the result of a decline in asset value and trading activity losses, the New York Times said.The firm earned $489 million in the second quarter of 2007. Lehman has been fighting with short-sellers who expressed concern about the firm’s borrowing and the method it uses to determine a value for illiquid assets, including residential and commercial mortgages.

By Erika Schnitzer, Associate EditorBoston–Phoenix Property Co., a Dallas-based real estate development firm, has submitted a Draft Project Impact Report to the Boston Redevelopment Agency (BRA) for the first purpose-built private student residence hall in Boston.The original building design was submitted to the BRA in April 2007. There was a significant reduction in the number of beds—from 1,140 to 793—the height—from 34 to 24 stories, explains Jason Runnels, executive vice president and a principal for Phoenix Property Co. “We changed some of the massing to accommodate a few of the city’s requests with respect to how the project laid out…

By Anuradha Kher, Online News EditorBaltimore–Alliant Capital recently closed a $1,525,000 second lien loan, collateralized by the Apostolic Towers Apartments located at 201 N. Washington St. in Baltimore.Apostolic Towers Apartments features a 149-unit, 12-story building built in 1979. Alliant provides return of equity to its borrowers through structured subordinate financing behind its own senior debt.

Anuradha Kher, Online News EditorNew York–James Delayo, acting chief inspector with the Department of Buildings’ cranes and derricks division, was arraigned and released without bail late last week on charges of receiving bribes, tampering with public records, falsifying business records, filing a false instrument and receiving unlawful gratuities.Delayo has been accused of signing off on crane inspections he did not perform and helping crane operators cheat on licensing exams in exchange for thousands of dollars.Although his arrest comes right after the fatal crane accidents of last week, authorities have said that his actions do not seem to be connected to…

By Keat Foong, Executive EditorNew York–Lenders are happy with doing business with REITs. That is the word from a panel of speakers at the National Association of Real Estate Investment Trusts’ (NAREIT) REIT Week held here at the Waldorf Astoria Hotel. Joseph Shaw, managing director, John Hancock Financial Services Inc., said that his company views REITs at least as favorably as non-public entities. He added that REITs operate in the 50 percent leverage level, which is in line with John Hancock’s tendency to provide financing at about up to 65 percent LTV. Leonard Cotton, vice chairman, Centerline Capital Group, said…