MLSs don't have to supply RETS feeds

NAR requires standards compliance, but not access to listings

By Matt Carter, Thursday, June 10, 2010.

Inman News

Flickr image by WebWizzard.

Realtor-owned multiple listing services are now required to be able to serve up listings data in a universally accessible format known as RETS, but MLSs are under no obligation to provide RETS feeds to their members.

  Software developers and providers of services like IDX (Internet Data Exchange) listing sites have looked forward to implementation of the Real Estate Transaction Standard, or RETS, because it will in theory allow all computers that deal with real estate information to "speak" the same language.

  Under a policy adopted two years ago, the National Association of Realtors mandated that all Realtor-owned MLSs be RETS compliant as of Dec. 31, 2009. And in most cases, MLSs are providing RETS-compliant data feeds to member brokers, say industry experts.

  But as one Hawaii-based network of real estate brokers recently discovered, just because an MLS is RETS compliant doesn't mean it has to provide access to RETS listings.

  Hawaii Life Real Estate Services, which boasts of having grown from zero to 65 agents in 23 months, currently has access to RETS feeds from two of the three MLSs in the islands.

  When it learned that the third MLS, Hawaii Information Service, had become RETS compliant, the company inquired about canceling its existing FTP and XML feeds from the MLS and replacing them with RETS.

  RETS listings can be updated throughout the day, instead of once every 24 hours, and allow greater flexibility in developing applications for agents than FTP (file transfer protocol) and XML (extensible markup language) listings feeds, said Hawaii Life's Justin Britt.

  When Britt heard Hawaii Information Service had become RETS compliant, he said he expected he'd be able to get access to the MLS's RETS server within a week.

  Instead, he said he was told by a Hawaii Information Services sales representative that the MLS did not offer a RETS feed, and was under no obligation to do so.

  When Britt checked with the Real Estate Standards Organization (RESO), the nonprofit that governs the development, maintenance and promotion of RETS, he was surprised to hear that this was true.

  RETS feed not mandatory 
 
The RETS policy adopted by NAR in 2008 requires only that Realtor-owned MLSs demonstrate their compliance by using RESO's online compliance checker, which verifies that they have a listings database up and running on a server that supports RETS.
But, Britt wondered in a recent Geek Estate blog post, if the goal of RETS is to create an industrywide standard for data exchange between MLS participants, why aren't MLSs also required to provide a feed?

  "My gut feeling is it was just an oversight," Britt said. If the matter is brought to the attention of NAR's board of directors, Britt said he hopes NAR will require MLSs to provide access to RETS listings.

  But Cliff Niersbach, NAR's vice president of board policy and programs, said there's been no request that the policy be changed.
Britt's realization that MLSs are not required to provide RETS listings feeds soon became the topic of an online discussion among members of RESO's board of directors.

  "I can't really argue with anything he states," said RESO board member David Harris, director of data management for eNeighborhoods.com. "I know we have avoided the 'NAR policy' topic in the past, but it would be a huge win if we could work behind the scenes to understand the reluctance (if there is any) to the MLS in providing RETS."

  Kristen Carr, a RESO board member since 2007, replied that there were "a ton of business reasons" why an MLS might not want to provide access to RETS listings, including staff skills and time, distrust of vendors, or a lack of appropriate agreements.
"I think it isn't any of our business and we cannot tell an MLS how to conduct their business," said Carr, who was hired by RPR in February as vice president of industry relations.

  Hawaii Information Service CEO Richard Eshleman told Inman News that the MLS does intend to make "a variety of RETS feeds available" in the second phase of its RETS compliance project.

  "Our consultant is currently working on the documentation and updating the RETS metadata," Eshleman said in an e-mail. "He is on schedule to have the project completed by the end of June, and we expect to have RETS feeds available early in July."

  RETS adoption
 
It's a matter of debate how many other MLSs are RETS compliant but not providing RETS feeds.

  Micheal Wurzer, president and CEO of flexmls developer FBS Data Systems, said he believes that Hawaii Information Service is "a very rare exception" and that the "overwhelming majority of MLSs provide RETS feeds."

  All of the more than 100 MLSs that use flexmls provide RETS feeds, Wurzer said.

  "Given the limited number of MLSs that do not provide RETS feeds, I don't think this is a major problem," Wurzer added.
"That's not to diminish the frustration those facing such a situation are experiencing, but it is the exception rather than the general state of affairs."

  Wurzer agreed with Carr that "whether an MLS provides a RETS feed or not isn't RESO's business." He noted that all MLSs are required to provide IDX (Internet Data Exchange) and VOW (Virtual Office Website) feeds, and that the most common method of delivering those feeds is RETS.

  Matt Cohen, chief technologist for Clareity Consulting, said "certainly the problem (of MLSs not providing RETS feeds) does exist," but it's hard to say whether it's a common one. Clareity Consulting provides information technology consulting to the real estate industry, and all of its MLS clients do provide RETS feeds, Cohen said.

  Jim Harrison, president and CEO of MLSListings Inc. in California's Sillicon Valley, said he "would expect it to be extremely uncommon" for MLSs to comply with NAR's policy but not provide RETS feeds.

  For one thing, MLSs (or their vendors) must have a RETS server up and running in order to verify RETS compliance, Harrison said. Then it's a matter of enrolling bulk data customers, such as brokers or vendors, to enable them to pull data updates.

  "RETS isn't perfect, but it's a fundamental service any broker and his vendors should expect from his MLS," Harrison said.

  According to a 2004 NAR white paper, RETS was first conceived of in 1999, and most of the major MLS vendors had RETS solutions in place years ago, including FBS, Fidelity National Information Services, Interealty, MarketLinx, Offutt and Rapattoni.

  Vendor perspective
 
Third-party developers that had incorporated RETS into their software by 2004 included eNeighborhoods, Homestore, McChristian, Showing Time, Supra, Tarasoft, Top Producer, WyldFyre and Zipforms.

  Karen Kage, CEO of Michigan's Realcomp II Ltd. MLS, said Realcomp currently provides a RETS feed for some vendors and brokers and is working toward moving all of its data feeds away from FTP and solely to RETS.

  Kage said there are some concerns, including the fact that RETS access bypasses the "two factor" agent ID and password security authentication currently in use by the MLS, "which could result in a loss of control of the data and access to the data."
Kage said her information technology team has told her that there "can be a lot of support involved with RETS," as there are different versions of the standard. "This could be a barrier to MLSs offering this service if they do not have sufficient staff," she said.

  The next version of RETS includes standard field names, "which should make this process much easier," Kage said.

  Britt said he understands that "it's not that (Hawaii Information Service) doesn't want to have (a RETS feed), it's that they have a custom-built MLS system and it (will) cost them money to implement."

  He said that Hawaii Information Service initially didn't seem to understand why Hawaii Life needed a RETS feed, or how the MLS's members would benefit.

  "The speed is the most important thing -- having properties being updated several times a day is a huge advantage to our clientele," many of whom are assisting buyers and sellers of distressed properties that generate bidding wars as soon as they hit the market, Britt said.

  From software developer Greg Robertson's point of view, RETS represents a step in the right direction, but is still a far cry from true data standardization that would make it possible to write applications that work for users of many different MLSs.

  RETS is a programming language that facilitates communications between an MLS server and brokerage computers, but it does not guarantee that the listings data from different MLSs will be fully compatible.

  Robertson, co-founder of Cloud CMA developer W&R Studios, said the best hope on that front is that MLS vendors are currently developing their own APIs, or application programing interfaces, that would allow vendors to help themselves to listings data -- with the authorization of MLSs.

  "I think a lot of vendors would say, 'Just let me grab the data myself,' " Robertson said. "This could be the next big step, if you get three MLS providers to say, 'Let's make (APIs to the same data specifications)' -- maybe, finally, there will be some movement on standards."

  If there was a common API for accessing listings of all MLSs using CoreLogic's MarketLinx MLS application, for example, software developers could write code for that API rather than working with each MLS's tech staff on compatibility issues, Robertson said. Developers would still have to get approvals from each MLS, but Robertson envisions MLS vendors playing a role in that process, too.

  "It would be great if I could go to a MarketLinx, check what MLSs I want to work with my product, download the permission forms, send them in, get back terms, and in less than a month, maybe I'm working with 16 MLSs around the country," Robertson said. "That would be fantastic."

Posted via email from The Hometown Agent

Bank repos hit new high in May

RealtyTrac says fewer homes headed into foreclosure

By Inman News, Thursday, June 10, 2010.

Inman News

Flickr photo by TheTruthAbout...

Lenders repossessed properties at record rates during May, even as the number of homes entering the foreclosure process declined, according to the latest numbers from RealtyTrac.

  Foreclosure-related filings fell 3 percent from April to May, driven by a 7 percent drop in default notices and a 4 percent decrease in scheduled auction notices, RealtyTrac said.

  Improvements in default and auction notices were partially offset by a 1 percent increase in bank repossessions, which hit a record high of 93,777 during May, up 44 percent from a year ago.

  All 50 states posted increases in bank repossessions from a year ago, RealtyTrac said, as lenders worked through a backlog of distressed properties that's been building up over the past 20 months.

  "Defaults and scheduled auctions combined increased by 28 percent from 2007 to 2008 and another 32 percent from 2008 to 2009, creating a buildup of delayed bank repossessions," said James J. Saccacio, RealtyTrac CEO.

  "Lenders appear to be ramping up the pace of completing those forestalled foreclosures even while the inflow of delinquencies into the foreclosure process has slowed."

  The number of properties hit with notices of default in May -- 96,462 -- was down 22 percent from a year ago and off 32 percent from an April 2009 peak.

  Foreclosure auctions were scheduled on 132,681 properties during May -- about the same as a year ago, but down 16 percent from a peak in March.

  Nationwide, 1 in 400 homes was subject to a foreclosure-related filing during May. Nevada topped the list of states with the highest rates of foreclosure-related filings, at 1 in 79 homes, followed by: Arizona (1 in 169 homes), Florida (1 in 174 homes), California (1 in 186 homes), Michigan (1 in 223 homes), Georgia (1 in 292 homes), Idaho (1 in 309 homes), Illinois (1 in 350 homes), Utah (1 in 360 homes) and Maryland (1 in 399 homes).

  In terms of the raw number of foreclosure-related filings, the top 10 states were: California (72,030), Florida (50,685), Michigan (20,322), Arizona (16,097), Illinois (15,061), Nevada (14,346), Georgia (13,778), Texas (11,137), Ohio (10,379) and New Jersey (7,993).

  Foreclosure activity was down from a year ago in all but one of the 10 metro areas with the highest foreclosure rates: Las Vegas (-18 percent); Merced, Calif. (-7 percent);  Modesto, Calif. (-28 percent); Vallejo-Fairfield, Calif. (1 percent); Cape Coral-Fort Myers, Fla. (-19 percent); Stockton, Calif. (-33 percent); Riverside-San Bernardino-Ontario (-29 percent); Bakersfield, Calif. (-19 percent); Reno-Sparks, Nev. (-18 percent); and Phoenix (-9 percent).

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Mortgage delinquencies hit 10%

By Les Christie, staff writer May 20, 2010: 1:22 PM ET

NEW YORK (CNNMoney.com) -- A dubious distinction was reached during the first three months of 2010: More than 10% of all mortgage borrowers are now behind on their payments.

 

The delinquency rate hit a record of 10.06% in the first quarter, according to the Mortgage Bankers Association. The seasonally adjusted rate accounts for all mortgages on properties that have up to four units and that are at least one payment late.

 

The rate has been inching steadily toward this record, having ticked up almost a full point since a year go.

The report contained a sliver of good news, however. The non-seasonally adjusted delinquency rate dropped almost one point to 9.38% between the fourth quarter 2009 and first quarter 2010.

 

So while the seasonally adjusted number saw growth during that period, the non-seasonally adjusted number followed the traditional pattern. Rates usually peak in the fourth quarter, as holiday spending and heating bills kick in causing people to put off paying their loan. But then, when they get caught up in the first quarter, delinquencies fall again.

 

"The question is whether the drop represents anything more than a normal seasonal decline or a more fundamental improvement," said Jay Brinkmann, MBA's chief economist. "The normal seasonal drop is coming right at the point where we believe delinquencies could potentially be declining and the problem for the statistical models is determining which is which."

 

Housing market diagnosis: Bipolar

The foreclosure inventory rate, which represents the percentage of mortgaged homes repossessed by lenders, was fairly flat quarter-over-quarter, inching up to 4.63% from 4.58%. But it jumped a lot from 12 months earlier, when the rate stood at 3.85%.

 

Nearly all varieties of loans suffered increased delinquencies compared with 12 months earlier. Prime fixed-rate loans hit 6.17%; prime adjustable-rate mortgages (ARMs) tipped 13.52%. Subprime fixed-rates jumped to 25.69%; and subprime ARMs are a whopping 29.09%.

 

The one bright spot was that delinquencies for FHA loans, the mortgages guaranteed by the Federal Housing Authority, dropped slightly to 13.15%.

 

The improvement is likely due to tighter FHA underwriting standards, which it adjusted after loans issued in 2007 and 2008 started souring. That should be a relief for taxpayers, who will be on the hook for any losses the FHA suffers.

 

Most of the overall rate increases are attributable to the seriously delinquent loans, Brinkmann said. Those loans, which are 90 days or more late, are going all the way through to foreclosure, but are not being foreclosed, keeping people in the system longer.

 

In the pre-housing-bust world, many borrowers would have already lost their homes and their delinquencies would no longer be counted in the survey.

 

Shift in problem-loan types

Lenders have slowed repossessions for various reasons: They may not have enough staff yet to handle the volume; the foreclosure prevention initiatives, such as the Home Affordable Modification Program, is postponing many foreclosures; and the banks themselves are trying to prevent defaults by approving more short sales.

 

Homeowners walking away

There has been a fundamental change in the nature of the loans causing the most default problems, according to Brinkmann. And, he added, unemployment is the culprit. "Delinquencies are much more driven by the recession than by any one loan type now," he said.

 

Subprime ARMs accounted for nearly 30% of all delinquencies a year ago, but just under 15% now. Meanwhile, prime fixed-rate loans delinquencies have grown so much that they represent the single biggest bucket of delinquent mortgages: 37% up from 29% a year ago.

 

Some of the prime loan defaults stem from an increase in people deliberately "walking away" from mortgages. These are homeowners who can pay their loans but choose not to because their homes have dropped so much in value.

 

According to a recent report, as much as 31% of all defaults in March were strategic.

Brinkmann opined that many of these "strategic defaulters" may be underestimating the impact of walking away. It may take them much longer to repair their credit histories than they realize as lenders assess more than their credit ratings to determine whether to finance future home purchases.

Underwriting involves more than just checking credit scores, and if a lender sees a strategic default on their records, homebuyers may not qualify for loans.

 

"They may be able to repair their credit scores," he said, "but their ability to buy a home in the future may be negatively impacted for years to come." 

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Hamp-ered Loans

5/31/2010
Source: Catherine Curan, New York Post Online

Thousands of Americans expecting to keep their homes after starting trial modifications on troubled mortgages could wind up in foreclosure anyway, thanks to a murky technicality known as the investor-based denial.

Since launching its Home Affordable Modification Program (HAMP) last year, the government has buried in the fine print that not all 60-day delinquent loans are eligible -- and one major exclusion is investor contracts that preclude modification.

Desperate homeowners trying to keep a roof over their heads often have no idea that the company to which they send loan payments is only a middle man who services the loan, and not the ultimate decider of their fate. In many cases, a shadowy investor or group of investors actually owns the debt.

And that's where the trouble comes in. These investors can put the kibosh on converting a trial modification to a permanent deal, without the homeowner even knowing the investor's identity or reason for rejecting the workout.

Many homeowners undertake trial modifications -- with a reduction in monthly loan payments -- only to be told months later that they can't convert to a permanent modification because the investor won't allow it and they now owe thousands in back payments. Many homeowners are getting incorrect information from the servicer, attorneys and advocates say.

"A lot of times there are no restrictions, and if there is one, it is usually limited [and] does not prevent the servicer from modifying under HAMP," says Margot Albert, staff attorney with Staten Island Legal Services. "[Servicers are] using any investor restriction as an excuse not to modify loans, even if there is another way under HAMP. . ."

Asked about this issue, a spokeswoman for Wells Fargo, which boasts that its mortgage unit services one of every six US mortgage loans, blamed the wide variety of contracts for securitized pools of loans.

Thousands of New York-area families are at the mercy of the servicers and investors who call the shots on HAMP -- with little oversight or accountability.

The New York-metro area has the second-highest level of HAMP activity in the nation, with 40,425 active trials and 16,672 permanent modifications.

With only 295,348 active permanent modifications through April 2010, however, HAMP has been a major flop for the families behind the 3.3 million eligible loans. Servicers and banks, meanwhile, are raking in the fees from Uncle Sam that fund HAMP.

Consumer advocates and attorneys who work with homeowners say investor-based denials -- across the spectrum of loan servicers -- are a growing problem in the New York area and nationwide. Attorneys from most of the 27 states in the Institute for Foreclosure Legal Assistance report a problematic lack of information behind investor-based denials, said Ellen Taverna, Legislative Associate at the National Association of Consumer Advocates, which manages the program.

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Chase Sued: Allegedly Told Homeowner to Stop Payments, Then Foreclosed‏

4/6/2010
Source: Arthur Delaney, Huffington Post
 
 
 

JPMorgan Chase told a California couple to quit making mortgage payments in order to qualify for a loan modification but then foreclosed on their Sacramento home, according to a lawsuit filed in federal court.

Faiz and Khadija Jahani called Chase in December 2008 because they were having trouble making their mortgage payments. According to the suit, they were told that they wouldn't qualify for a modification without being delinquent and that they should stop making payments for three months.

At the beginning of June, the Jahanis claim that they were told they qualified for a modification that reduced their monthly payments. Thr ee weeks later, they received a letter telling them the bank intended to foreclose. This confusing back-and-forth continued for months, with Chase repeatedly asking them to resend paperwork, according to the complaint filed in U.S. District Court, Eastern District of California/Sacramento Division, which was first reported by Courthouse News.

The couple is demanding damages of $150,000 for breach of contract, fraud, predatory lending and violation of the Fair Credit Reporting Act.

In October, a real-estate investor knocked on the Jahanis' door and asked them about buying the house, telling the couple that it was a bank-owned property. When the Jahanis called Chase to find out what was going on, they claim they were reassured that the bank had not foreclosed on the house.

"They kept getting conflicting information," said lawyer Piotr Reysner. He added that, as far as he can tell from public records, the bank did in fact foreclose on the property. "Unfortu nately, they face a situation right now where they could easily get a three-day notice to quit the house."

Chase did not immediately respond to a request for comment.

Reysner, a bankruptcy attorney, said he did not know whether the Jahanis had been pursuing their modification via the Obama administration's Home Affordable Modification Program, which started in spring 2009 and gives banks incentives to modify mortgages for hard-luck homeowners. Banks are not allowed to foreclose on borrowers eligible for the program, but they are allowed to move forward with the foreclosure process during a trial modification, a source of much confusion for borrowers everywhere.

"The fact that a servicer is telling a homeowner that they're taking care of the matter and, while they're negotiating, the house moves into foreclosure is a completely common scenario in today's foreclosure world," said Ira Rheingold, director of the National Association of Consumer Advocates.

In March, HuffPost reported on Indiana law student Melissa Stua rt, who had been making monthly payments under HAMP, only to be told when the trial period ended that she was delinquent. Stuart ultimately won a permanent modification.

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