Real Estate Agent Survey June 2009

Real Estate AgentsReport on HomePurchases andMortgages - 2009

Sponsored By

Inside Mortgage FinancePublications, Inc.

Survey Design By

Geosegment SystemsCorporation

Conducted By

Campbell Communications, Inc.

July 2009

Summary Report

1

Real Estate Agents Report onHome Purchases and MortgagesSummary Report

Table of Contents Page

Introduction ................................................................................................................................. 3

Partial Summary of Statistics and Facts .................................................................................. 4

Headline Principal Findings ....................................................................................................... 5

Respondent Acquisition and Sample Size ............................................................................... 6

Respondent Demographics ....................................................................................................... 7

Company Information ............................................................................................................... 14

Definitions ................................................................................................................................. 16

Real Estate Market Conditions ................................................................................................ 17

Survey Statistics ..................................................................................................................... 17Comments Regarding Conditions in Real Estate Markets ...................................................... 19Damaged REO .................................................................................................................... 19Move-In Ready REO ........................................................................................................... 20Unspecified Condition REO ................................................................................................ 21Short Sales .......................................................................................................................... 24Distressed Properties .......................................................................................................... 31Non-Distressed Properties .................................................................................................. 31Upper-End ........................................................................................................................... 33Lower-End ........................................................................................................................... 34Market Is Stabilizing ............................................................................................................ 37Market Is Depressed ........................................................................................................... 39Local Market Anecdotes ...................................................................................................... 41

Buy-Side Transactions ............................................................................................................. 45

Homebuyer Demand for Properties ........................................................................................ 45

Survey Statistics ..................................................................................................................... 45Comments Regarding Impediments to Purchasing Homes .................................................... 52Appraisal Issues .................................................................................................................. 52Condo Financing Issues ...................................................................................................... 57Increase in Mortgage Rates ................................................................................................ 57Inspection Contingencies .................................................................................................... 62Invalid Mortgage Preapprovals ........................................................................................... 63Long Response Time on Short Sales ................................................................................. 65Other Home Purchase Impediments ................................................................................... 67Comments Regarding Impediments to Selling Homes ........................................................... 70Competition with Listings of Distressed Properties ............................................................. 70Economic Uncertainty or Fear of Job Loss ......................................................................... 71Falling Property Prices ........................................................................................................ 72Unable to Qualify for Mortgage on New Property ............................................................... 74Underwater on Existing Mortgages ..................................................................................... 75Miscellaneous Impediments ................................................................................................ 75Comments Regarding Effect on Listings of 5% Increase in Home Prices .............................. 78

Comments Regarding Recommending Mortgage Providers ................................................ 80

Agents Who Do Not Recommend Mortgage Providers ....................................................... 80Number of Mortgage Provider Recommendations .............................................................. 82Reasons for Recommending a Mortgage Provider ............................................................. 83

2

Preference for Local Mortgage Providers ........................................................................... 86Comments Regarding Availability of Mortgage Financing ...................................................... 87

Comments on Rated Lenders .................................................................................................. 89

Bank of America ...................................................................................................................... 89Chase Mortgage ..................................................................................................................... 92Countrywide ............................................................................................................................ 93GMAC ..................................................................................................................................... 94National City/PNC ................................................................................................................... 95SunTrust Mortgage ................................................................................................................. 96Wells Fargo ............................................................................................................................. 97

Comments Regarding Government Actions for the Housing Market ................................ 100

Previous Government Actions............................................................................................... 100Financial Incentives for Short Sales .................................................................................. 100First Time Homebuyer Credit ............................................................................................ 101Foreclosure Moratorium .................................................................................................... 101Loan Modifications ............................................................................................................ 102Reduced Mortgage Rates ................................................................................................. 104Potential Government Actions............................................................................................... 104$8,000 Tax Credit for All Homebuyers .............................................................................. 104$8,000 Tax Credit for Buying REO .................................................................................... 105Fraud Investigations .......................................................................................................... 105Higher Jumbo Loan Limit .................................................................................................. 106Mandated One Week Response Time on Short Sale Offers ............................................ 106Mandated Standardization of Short Sale Process ............................................................ 108Prosecution of Those Damaging REO Properties ............................................................. 108Require Local REO Agents ............................................................................................... 109Government Actions Are Ineffective .................................................................................. 109

Comments Regarding Short Sale Transactions .................................................................. 112

Response Times ................................................................................................................... 112Short Sale Process ............................................................................................................... 116Short Sales Sold for Less after Foreclosure ......................................................................... 119Training ................................................................................................................................. 119

Comments Regarding REO Transactions ............................................................................ 120

Bulk Transactions ................................................................................................................. 120Commissions on REO Property ............................................................................................ 121Contract Issues with REOs ................................................................................................... 122Inspections ............................................................................................................................ 123Pricing of REO ...................................................................................................................... 123Property Maintenance ........................................................................................................... 124REO Asset Managers ........................................................................................................... 125REO Double-Ending ............................................................................................................. 126REO Maintenance ................................................................................................................. 127REO Listing Agents ............................................................................................................... 127

Comments about This Survey ............................................................................................... 132

Survey Instrument .................................................................................................................. 133