MBA Releases 2012 Rankings of Commercial/Multifamily Mortgage Firms’ Origination Volumes

Washington, DC (March 21, 2013) – Wells Fargo was the top commercial/multifamily mortgage originator in 2012, according to a set of commercial/multifamily real estate finance league tables prepared by the Mortgage Bankers Association (MBA). Other top originators include Bank of America Merrill Lynch; HFF, L.P.; PNC Real Estate; Meridian Capital Group, LLC; CBRE Capital Markets, Inc.; Prudential Mortgage Capital Company; KeyBank Real Estate Capital; Jones Lang LaSalle; Walker & Dunlop; NorthMarq Capital LLC and Berkadia.

The MBA study is the only one of its kind and presents a comprehensive set of listings of 111 different commercial/multifamily mortgage originators, their 2012 volumes and the different roles they play. The MBA report, Commercial Real Estate/Multifamily Finance Firms - Annual Origination Volumes, presents origination volumes in more than 140 categories, including by role, by investor group, by property type, by financing structure type, and by the location of the originating office. 

The report is available at: http://store.mortgagebankers.org/ProductDetail.aspx?product_code=EC6-300033-RP-I 

Highlights of the listing include: 

Ten different companies were at the top of the 11 lists reporting total originations by investor groups:

• Wells Fargo Bank was the top originator for commercial mortgage-backed securities (CMBS); and other investors,

• Bank of America Merrill Lynch was the top originator for commercial bank loans,

• MetLife Real Estate Investors for life insurance companies,

• Wells Fargo and Walker & Dunlop were separated by just $8 million as the top originators of loans for Fannie Mae,

• CBRE Capital Markets Inc. was the top originator for Freddie Mac,

• Red Mortgage Capital, LLC was the top originator for FHA/Ginnie Mae,

• TIAA-CREF was the top originator for pension funds,

• HFF, L.P. was the top originator for credit companies,

• KeyBank Real Estate Capital was the top originator for REITS, Mortgage REITS, Investment Funds, and

• Cohen Financial was the top originator for specialty finance. 

Firms with the largest dollar volume of loans that were originated not for their own investment portfolios, but rather for third parties in 2012 were Wells Fargo, HFF, Meridian Capital Group, CBRE Capital Markets, and PNC Real Estate. 

The top five lenders in 2012 were Wells Fargo, Bank of America Merrill Lynch, PNC Real Estate, Prudential Mortgage Capital Company, and KeyBank Real Estate Capital. 

A copy of the results is available for sale through MBA's Online Store at:

http://store.mortgagebankers.org/ProductDetail.aspx?product_code=EC6-300033-RP-I.

The complete report by President Obama to the U.S. Congress is available online as released by the White House in pdf format.

New Report Shows Housing Demand Among Immigrants to Grow Nationwide

WASHINGTON, DC (March 6, 2013) – Homeownership and rental demand of foreign-born households will continue to increase as growing numbers of immigrants settle longer in the United States, according to a new report sponsored by the Mortgage Bankers Association’s (MBA) Research Institute for Housing America (RIHA).

The report entitled 'Immigrant Contributions to Housing Demand in the United States: A Comparison of Recent Decades and Projections to 2020 for the States and Nation,' constructs a demographic-based projection through 2020 of the growth in homeowner and renter households headed by immigrants in the states and regions of the nation. The report was prepared by Professor Dowell Myers and Senior Research Associate John Pitkin of the Population Dynamics Research Group at the University of Southern California School of Policy, Planning, and Development and sponsored by RIHA, MBA’s independent research foundation. 

Key findings from the study include: 

• The volume of growth in foreign-born homeowners has increased each decade, rising from 0.8 million added immigrant homeowners in the United States during 1980¬-1990, to 2.1 million added in 1990–2000, to 2.4 million added in 2000–2010, and is projected to rise further to 2.8 million in growth in the current decade (2010–2020). 

• Foreign-born ownership demand comprised the majority of all growth in homeownership in the established gateway states of California and New York. From 2000–2010 immigrants accounted for 82.2 percent and 65.1 percent, respectively, of the growth in homeowners in those states. In that decade immigrants also accounted for the major share of net growth in owner households in Illinois, New Jersey, Pennsylvania, Massachusetts, Ohio and Michigan. 

• Aggregate increases in foreign-born renter households peaked in the 1990–2000 decade at 2.3 million, slowed to a net of 1.6 million in 2000–2010, and are projected to be 1.3 million in the current decade. 

• Between 2010–2020, immigrants nationwide are projected to account for 32.2 percent of the growth in all households, including 35.7 percent growth in homeowners and 26.4 percent growth in renter households. 

• Between 2010–2020,foreign-born ownership demand is projected to remain a majority of the growth in six states: California, New York, New Jersey, Massachusetts, Connecticut and Michigan. 

• Foreign-born homeownership demand rose most dramatically in the newer destination states. For example, in Georgia and North Carolina, immigrants accounted for 34.1 percent and 24.8 percent respectively, from 2000–2010, nearly triple immigrants’ shares of homeowner growth of the 1990s in those states. 

• Despite the projected rise in immigrant housing demand, the immigrant share of all demand growth is somewhat reduced in the current decade as compared to the last, because a larger increase is projected among native-born homebuyers. The combined projected growth of nearly 8 million added homeowners is much greater than the 5.1 million growth of the last decade. 

• In the current decade, foreign-born renters comprise over one third of projected total growth in seven states: California, Washington, D.C. metro area, New York, New Jersey, Massachusetts, Connecticut and Illinois. 

“Immigrants are an important and growing source of demand that has bolstered housing markets in recent decades,” said Professor Dowell Myers of the Population Dynamics Research Group at the University of Southern California. “Growth in housing demand in recent decades has been more stable among foreign-born than native-born households. This is because increases in native-born demand have been subject to large swings in the size of cohorts reaching ages 25 to 34, the most common age of entry to the housing market. In contrast, inflows of new immigrants have not varied widely in recent decades, and in addition the strong upward mobility of prior immigrants, has led to continued increases in aggregate demand for home ownership.”

“Rising numbers of foreign-born households are driven by the continued increases in homeownership rates achieved as immigrants settle longer in the United States. For example, among the cohort of Hispanics who arrived in the United States during the 1980s, homeownership rose from just above 15 percent in 1990 to nearly 53 percent in 2010 and is projected to rise to above 61 percent in 2020 when the cohort will have resided more than 30 years in the United States,” said John Pitkin Senior Research Associate of the Population Dynamics Research Group at the University of Southern California. 

“As the housing market continues its recovery, it is important to understand the demographic trends which are likely to impact housing demand in the years ahead,” said Michael Fratantoni, RIHA’s Executive Director. “This study provides information for lenders, builders, and policymakers regarding the future shape of housing demand, which the authors clearly show will be substantially impacted by the housing choices of foreign-born households, whether they are renters or homeowners.” 

To read the report, click on the italicized title, above; the Executive Summary can be read here.

Read their report, entitled "Housing America’s Future: New Directions for National Policy" here.

The press release issued by the Bipartisan Policy Center, and the reaction by the Mortgage Bankers' Association to this report, are shown below in our news releases of the week:

Bipartisan Policy Center Commission Recommends New Systems for Housing Finance and Federal Rental Assistance 

Demographic shifts transform nation’s housing needs 

Feb. 25, 2013

Washington, D.C. – A bipartisan commission of former Cabinet secretaries, former Senators and other leading housing and economic experts unveiled a new vision for housing policy today, which aims to further our nation’s economic recovery and improve the lives of millions of Americans. The recommendations propose scaling back the government role in the nation’s housing finance system and reforming housing assistance programs to better meet the needs of America’s most vulnerable households. 

The commission is co-chaired by former Senate Majority Leader George J. Mitchell, former Senator Christopher S. “Kit” Bond, former Senator and HUD Secretary Mel Martinez, and former HUD Secretary Henry Cisneros, and includes 17 other individuals from diverse professional and political backgrounds. 

The report from the Bipartisan Policy Center’s Housing Commission, entitled Housing America’s Future: New Directions for National Policy, proposes a new housing finance system that calls for a far greater role for the private sector, a continued but limited role for the federal government, the elimination of Fannie Mae and Freddie Mac, and reform of the Federal Housing Administration to improve efficiency and avoid crowd-out of private capital. 

Through these reforms, the plan would address the broken mortgage finance system while creating a stable and strong housing market that provides greater taxpayer protection and supports a more vibrant economy. 

“At this critical time in our nation’s history, we can no longer afford to defer bipartisan action on housing,” said the co-chairs in an op-ed in POLITICO today. “We believe our report can serve as a framework for Congress and the administration to act in the best interests of all Americans.” 

“Profound demographic changes are transforming the country and our housing needs. The aging of the Baby Boomers, the formation of new households by millions of young Echo Boomers striking out on their own, and the increasing diversity of the American population will present new challenges and opportunities for housing providers and policy makers.” 

The plan calls for reforms that would establish a new performance-based system for delivering federal rental assistance with greater devolution of responsibilities to state and local providers. The commission also proposes to shift existing resources to assist more effectively the most vulnerable households, and to preserve and expand the Low Income Housing Tax Credit program to increase the supply of affordable rental housing. 

For first-time home buyers, the report emphasizes the importance of housing counseling as a means of preparing for homeownership. The commission recommends proposals to enable seniors to “age in place” safely and affordably while integrating housing with health care and other programs. For the one-third of Americans who live in rural areas, the commission recommends continued support for homeownership and rental assistance in those communities. 

“Six years after the collapse of the housing market, the problems in housing remain as severe as ever and solutions continue to be elusive,” says the op-ed. “We hope [our report] will serve as a catalyst for action.” 

To read the full report of the Bipartisan Policy Center’s Housing Commission, please visit http://bipartisanpolicy.org/library/report/housing-future. 

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Statement of MBA’s David Stevens on Bipartisan Policy Center’s Housing Commission Report

WASHINGTON, D.C. (February 25, 2013) – David H. Stevens, President & CEO of the Mortgage Bankers Association (MBA), issued the following statement in response to the Bipartisan Policy Center’s Housing Commission (the Commission) report America’s Housing Future: New Directions for National Policy.

“The release of today’s report represents another important step forward in the debate over the future of the government’s role in housing. As the recovery in the housing market and the broader economy continues to gain momentum, it is critical that all stakeholders work together with policymakers to identify positive solutions that will support both owner-occupied and rental housing finance. 

“There is widespread agreement that the government’s footprint in housing finance is currently too large. The Commission’s report rightfully highlights the need for a greater role for private capital in bearing credit risk, while also acknowledging the continued desire for a limited government function to ensure sufficient mortgage liquidity for qualified borrowers, particularly in times of market stress. 

“We are pleased to see that the Commission’s framework closely follows that of MBA and others who have called for a new secondary mortgage market structure where private capital is placed in the first-loss position, with a federal backstop of mortgage backed securities (MBS) paid for by the entities that issue or insure the MBS. It is important that any secondary market proposal both meet policy objectives, in terms of ensuring secondary market liquidity, and support vibrant, dynamic, and competitive primary and secondary markets for the ultimate benefit of homeowners. 

“The Commission also rightfully identifies a number of other issues facing lenders that are causing an overly tight credit environment that limits financing for qualified borrowers, including ‘put-back’ risk and uncertainty in regulatory mortgage rule-making. 

“Likewise, the Commission’s report recognizes the important role of a robust rental housing market for the approximately 35 percent of Americans who do not own their own home. MBA shares the Commission’s concerns about the importance of a sufficient supply of multifamily rental housing, particularly for low-income families. 

“As we have the opportunity to further digest the Commission’s report, MBA looks forward to working with the Commission to identify and discuss issues where our views may be divergent.” 

###

Commercial Real Estate Sectors Steadily Improve

WASHINGTON (February 25, 2013) - Major commercial real estate sectors continue to improve, albeit slowly, with gradual economic improvement and job creation driving absorption of space, according to the National Association of Realtors® quarterly commercial real estate forecast. 

Lawrence Yun, NAR chief economist, said rental housing demand has been exceptionally strong. "Rent increases have been higher in multifamily housing where supply is not matching strong demand, thereby allowing landlords to raise rents at faster rates," he said. "Overall commercial real estate leasing activity continued to grow in most markets during the closing months of 2012, which is modestly lowering vacancy rates in all of the commercial sectors early this year." 

National vacancy rates over the coming year are expected to decline 0.4 percentage point in the office market, 0.4 point in industrial, 0.3 point for retail and 0.1 point in multifamily, with that sector experiencing the tightest availability. 

"Business spending is expected to rise faster in 2013 because of record high corporate profits. Low interest rates also are permitting companies to improve their balance sheets," Yun said. 

NAR's latest Commercial Real Estate Outlook1 offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas were provided by REIS, Inc.,2 a source of commercial real estate performance information. 

Office Markets

Vacancy rates in the office sector are forecast to fall from a projected 16.0 percent in the first quarter to 15.6 percent in the first quarter of 2014. 

The markets with the lowest office vacancy rates presently (in the first quarter) are Washington, D.C., with a vacancy rate of 9.4 percent; New York City, at 9.6 percent; and Little Rock, Ark., 12.1 percent. 

Office rents should increase 2.6 percent in 2013 and 2.8 percent next year, following a 2.0 percent gain in 2012. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is expected to total 34.0 million square feet this year and 42.3 million in 2014. 

Industrial Markets

Industrial vacancy rates are likely to decline from 9.6 percent in the first quarter of this year to 9.2 percent in the first quarter of 2014. 

The areas with the lowest industrial vacancy rates currently are Los Angeles and Orange County, Calif., each with a vacancy rate of 3.6 percent; Miami, 5.6 percent; and Seattle at 6.0 percent. 

Annual industrial rents are projected to rise 2.3 percent this year and 2.6 percent in 2014, after increasing 1.7 percent last year. Net absorption of industrial space nationally is likely to total 121.8 million square feet in 2013 and 103.5 million next year. 

Retail Markets

Retail vacancy rates are forecast to slide from 10.7 percent in the first quarter of the year to 10.4 percent in the first quarter of 2014. 

Presently, markets with the lowest retail vacancy rates include San Francisco, 3.5 percent; Fairfield County, Conn., at 4.2 percent; and Orange County, Calif., 5.2 percent. 

Average retail rents will probably rise 1.5 percent in 2013 and 2.1 percent next year, following a 0.8 percent gain in 2012. Net absorption of retail space is seen at 11.9 million square feet in 2013 and 16.4 million next year. 

Multifamily Markets

The apartment rental market - multifamily housing - should see vacancy rates ease from 4.0 percent in the first quarter to 3.9 percent in the first quarter of 2014; vacancy rates below 5 percent generally are considered a landlord's market with demand justifying higher rents. 

Areas with the lowest multifamily vacancy rates currently are New Haven, Conn., at 2.0 percent; New York City, 2.1 percent; and Minneapolis and Syracuse, N.Y., each at 2.5 percent. 

Average apartment rents are expected to increase 4.6 percent this year and 4.7 percent in 2014, after rising 4.1 percent in 2012. Multifamily net absorption is projected at 270,600 units in 2013 and 253,200 next year. 

The Commercial Real Estate Outlook is published by the NAR Research Division. NAR's Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR. 

# # # 

1 Additional analyses will be posted under Economists' Outlook in the Research blog section of Realtor.org in coming days at: http://economistsoutlook.blogs.realtor.org/. 

2 Beginning in the third quarter of 2011, NAR commercial forecasts have been generated based on historical data provided by REIS, Inc., and do not correspond with prior historical information from previous forecasts. This source permits coverage of more metro areas than were previously covered. 

The next commercial real estate forecast and quarterly market report will be released on May 28 at 10:00 a.m. EDT.

Commercial Real Estate Investors Eager to "Turn the Page," According to New Outlook Report

CHICAGO - Frustrated by continued uncertainty, a sluggish recovery, and a challenging investment environment, investors generally appear eager to put the past behind them and adjust to the new normal, as outlined in Expectations & Market Realities in Real Estate 2013—Turn the Page, a new annual report published jointly by Real Estate Research Corporation (RERC), Deloitte, and the National Association of REALTORS® (NAR). According to the report, investors appear to realize that this environment will likely be with us for the foreseeable future, and that adjustments may need to be made to maximize commercial real estate investment performance and yield in our continuing slow-growth economy. 

The three organizations have drawn on their respective capabilities to examine the economy, capital markets, and commercial real estate property markets; to thoroughly assess and analyze existing research; and to offer an outlook for commercial real estate for 2013 and beyond. Findings indicate that the economy is expected to improve only modestly in 2013, with the budget deficit, tax increases, and cuts in government spending expected to continue the economic uncertainty. In general, capital remains available for commercial property investments, but the discipline for capital has been inching upward and is becoming more selective. The report also carefully analyzes and offers an assessment of the office, industrial, apartment, retail, and hotel property sectors, as well as for commercial real estate as an asset class, for 2013. 

“It is time to stop waiting for the economy and the investment environment to get better. This is it—this is the new normal—and we need to turn the page on the past and make the adjustments needed to be successful for the balance of this decade,” stated Kenneth Riggs, Jr., chairman and president of RERC. “Investors are facing the challenges ahead, and commercial real estate continues to be an attractive investment for a variety of reasons in this economic climate.” 

“Moderate positive and stabilizing trends in commercial real estate markets are expected to add value to institutional portfolios as we turn the page to the next chapter of the real estate cycle,” noted Matthew Kimmel, principal and U.S. real estate sector leader for Deloitte Financial Advisory Services LLP. “Overall the office, industrial, retail, apartment and hotel property sectors are expected to experience various elements of slow fundamental increase and growth.”

The group expects the commercial real estate recovery to continue throughout 2013. “A pent-up demand for commercial property space has been developing with the nearly 5 million net new job creations in the past three years,” noted Lawrence Yun, Ph.D., NAR chief economist. “That demand steadily reaching the market, combined with little new construction, will likely help lower vacancy rates and push up rents.”

If the internet is any indication of interest in real estate purchasing and investment - and most real estate brokers argue that online searches are a valid indicator of buyer interest (not just where, but in what kinds of properties) then Florida real estate developers and those selling real estate here in Florida should take note of Trulia's latest study, detailed here in our News Release of the Week.

February, it seems, is the hottest month for Florida real estate buyers to be interested and investigating property here:

TRULIA IDENTIFIES STATE-BY-STATE SEASONAL REAL ESTATE SEARCH PEAKS AND VALLEYS

Bucking Typical Springtime Real Estate Season, Online Home Searches Highest in February in Florida and in August in Montana and Oregon

SAN FRANCISCO, January 30, 2012 – Trulia (NYSE: TRLA) today published the findings from the Trulia Real Estate Search Report, which tracks and analyzes the online search behavior of U.S. house hunters. Based on all home searches on Trulia from 2007 to 2012, this study provides the inside scoop on the seasonal peaks and valleys in real estate search activity across all 50 states. To see the seasonal pattern, we used a seasonal adjustment model to strip out the upward trend in our search traffic, to reveal whether a state’s search activity in each month is above or below the annual average for that state.

Online House Hunting Hot in March and April, Cold in December

After the holidays, prospective homebuyers and renters typically begin or renew their home search at the start of a new year. At the national level, online real estate search activity picks up in January and reaches its peak in March and April, after stripping out the upward trend from Trulia’s traffic growth over time. Following a slight dip in May, a second peak occurs during the summer months of June and July. As the year ends, home searches slow down, hitting their lowest level in December.

Home Searches in Hawaii, Florida, Montana and Oregon Peak Off-Season

While most online home searches happening at the state level correspond with typical seasonal patterns, local markets follow their own rhythms. For example, in January, search activity in Hawaii and Florida is more than 10 percent above each state's annual average, but almost 10 percent below the annual average in Maine. Meanwhile, summer is when searches peak in the South, and a few states in the Northwest and Northeast. The last two states to peak are Montana and Oregon in August. By October, every state is below its annual average of search activity, and in December, every state is 10 percent or more below its annual average.

When Online Real Estate Searches Peak

Month / U.S. State

January

Hawaii

February

Florida

March

Arizona, California, Delaware, Georgia, Idaho, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Pennsylvania, Virginia, Washington

April

Colorado, Connecticut, District of Columbia, Illinois, Indiana, Kansas, Minnesota, New York, North Dakota, South Dakota, Utah, West Virginia, Wisconsin

May

*

June

Mississippi

July

Alabama, Alaska, Arkansas, Louisiana, Maine, New Hampshire, New Jersey, New Mexico, North Carolina, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Wyoming

August

Montana, Oregon

September

*

October

*

November

*

December

*

* Indicates that real estate search activity does not peak in any state during this month.

PRE-APPROVED QUOTES

“Home-search activity swings with the seasons in every state. Buyers and sellers can use these ups and downs to their advantage,” says Jed Kolko, Trulia’s Chief Economist. “Sellers looking for the most buyers should list when real estate search traffic peaks. Buyers, however, should think about searching off-season, when there is less competition from other searchers.

“Local weather patterns have a big impact on when people search for homes online. If it’s too cold or wet to check out open houses, people search less online,” says Jed Kolko, Trulia’s Chief Economist. “Search activity in warm-winter states, like Florida and Hawaii, peaks in January and February. But for most of the country, search traffic is highest in March or April, especially in regions where summer brings rain. In general, people search more online when it’s warm and dry outside.”

MULTIMEDIA

To view the full Real Estate Search Study, click here.

To view an interactive U.S. map illustrating the peaks and valleys of online real estate searches across the country, click here.

ABOUT TRULIA, INC.

Trulia (NYSE: TRLA) gives home buyers, sellers, owners and renters the inside scoop on properties, places and real estate professionals. Trulia has unique info on the areas people want to live that can't be found anywhere else: users can learn about agents, neighborhoods, schools, crime, commute times and even ask the local community questions. Real estate professionals use Trulia to connect with millions of transaction-ready buyers and sellers each month via our hyper local advertising services, social recommendations, and top-rated mobile real estate apps. Trulia is headquartered in downtown San Francisco. Trulia is a registered trademark of Trulia, Inc.

For further information: Daisy Kong, pr@trulia.com, 415.400.7391

Urban Land Institute Convenes Investors, Insurers and Public Officials to Explore Emerging Business Risks for Property in Coastal Regions 

For more information, contact Trish Riggs at 202-624-7086 

WASHINGTON (January 24, 2013) – The impact of climate change will play a greater role in shaping coastal development in the years ahead, influencing decisions on what is built and rebuilt, where and how it is built, and how it is insured and financed, according to insurance and real estate professionals speaking at a global policy and practice forum hosted by the Urban Land Institute (ULI). 

The increased frequency of property casualties associated extreme weather events, including severe hurricanes, tornadoes, floods, storm surges, and drought-fueled fires, as well as significant sea level increases are changing how property risk is valued, noted the panelists. The changes in both extreme weather events and risks are compelling the real estate industry to explore new development practices that implement adaptive measures that better protect both the built and natural environment. Increased climate risks are also raising awareness of the need for more investments to make existing buildings more energy efficient and reduce the carbon emissions associated with buildings. 

“For the real estate industry, the risk posed to urbanized coastal areas by climate change has become a global issue with dramatic local ramifications. It’s one of several drivers – along with economic, demographic and societal changes – that are necessitating a different approach to coastal development in the twenty-first century,” said ULI Chief Executive Officer Patrick L. Phillips. “Whether necessitated by reasons related to market demand or environmental concerns, rebuilding presents an opportunity to reduce risk in the future, enhance livability, restore natural resources, and increase community resilience.” 

The forum, “Resilience and Risk in Coastal Regions,” held January 16-17 in Washington, D.C., included representatives of the federal government, local governments, investors, property owners and leading members of the insurance and reinsurance industries.Among the panelists’ observations and predictions: 

• Mark-to-market pricing could be replaced by “mark-to-future” pricing that reflects external factors such as a community’s sea wall height and internal factors such as whether the building mechanical systems are elevated in a building. “This century will be about high volatility and huge uncertainty…Planning will be stepped up for events related to climate change, and buildings will be assessed for what will break.”
• Population growth and the rise of the global middle class is accelerating the urbanization of coastal cities worldwide, increasing their vulnerability to high losses of life and property damage from catastrophic storms.
• In the U.S., compromised infrastructure systems are adding to the risks faced by these rapidly growing areas. “Reinsurers and insurers are facing increasing losses around the globe, and what it boils down to is how to deal with uncertainty going forward.”
• Risk assessments are being adjusted to account for the fact that storms originating off the coast are increasingly having a major effect on geographic areas far beyond the initial landfall point, reaching places where buildings are not constructed to the same standards as those on the coast.
• Several lessons resulted from Hurricane Sandy that can be applied to urban planning for the future: 1) Critical infrastructure (such as electricity grids) should be restructured to provide more individualized service on a block-by-block basis, so whole communities do not lose power at once; 2) Land uses need to be reevaluated, in terms of which areas should not be rebuilt or rebuilt differently; 3) Consideration should be given to elevating water and sewer systems to factor in sea level increases; and 4) a new system of infrastructure financing, such as an infrastructure bank, is needed to generate funds to upgrade and build more weather-resilient systems.
• The carbon footprint of buildings will increasingly affect property values and the availability of financing. Tenants seeking to lower their own carbon emissions will choose to lease space in high performing buildings, even if the rent is more expensive. “Carbon is the new asbestos for real estate; and it’s on everyone’s balance sheet.”
• Property insurance underwriting is being driven by the desire for market share, which is causing many companies to be heavily exposed in areas inadequately prepared to withstand natural and manmade disasters. More programs are needed to incentivize cities to implement adaptation measures.
• The costs of business interruption are often far higher than those for replacing properties and repairing damage, but business interruption is seldom reflected in policy coverage. In addition to the vulnerability of their own locations, companies need to gauge the risks posed by the locations of partners such as parts suppliers. As storms become more frequent and intense, long-term economic losses will eclipse property destruction as the major threat to urban prosperity.
• More and more coastal areas are being affected not just by major storms, but by “non-event” weather that is flooding heavily built-up shorelines. A more balanced approach is needed that reflects the likelihood of future damage (and thus avoids rebuilding in the most disaster-prone areas), but which also recognizes that coastal real estate is a key economic driver. One likely outcome: greater use of the waterfront as open space, which creates value for the entire community but can also act as a protective barrier to storm surges.

Observed forum keynote speaker Fred Krupp, president of the Environmental Defense Fund: “Finding solutions to climate change is not an easy path, but a necessary path. We must keep talking about these issues, because we have paid a heavy price for our silence.” 

About the Urban Land Institute

The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 30,000 members representing all aspects of land use and development disciplines.

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Economic Indicator: Federal Reserve's Leading Indicator Index

Florida’s economy is looking bright according to the Philadelphia Fed’s leading indicator index, which projected a 1.73% growth rate for the state over the next 6 months in November.

Also, Florida’s coincident index—also from the Philly Fed—grew to 143.55 in that same month, up 0.3% from the month prior.

Moreover, Florida’s coincident index outpaced the national index in November, which grew by 0.21%.

The components of the coincident index that contributed to this growth were Florida’s seasonally-adjusted unemployment rate—which dropped to 8.1% in November—average weekly hours worked in manufacturing—which increased by 0.1 hours to 40.2—and seasonally-adjusted nonfarm payrolls—which increased by 0.33% to 7,402,200. Only one component declined—Florida’s wage and salary disbursements dropped by 1.42% in the third quarter of 2012, after being deflated by the CPI.

Since these components are also a part of Florida’s leading index, they contributed to its rise as well. In addition to these components, the leading index received additional help from Florida’s initial unemployment claims—the weekly average in November was 11.6% lower than October 2012 and 0.2% lower than November 2011—and new residential units authorized by building permit—which grew by 3.23% from October and 43.05% from a year ago.

However, the New York Fed’s recession indicator grew in November—indicating a 6.41% chance of a recession in November 2013—while manufacturing delivery times from the Institute for Supply Management also worsened.

For further reading on many of these components, see the Florida Indicators list on BEBR’s home page.

• Release Date: Mon, 01/14/2013
• Coverage Start: Thu, 11/01/2012
• Coverage End: Fri, 11/30/2012
• Current: 1.73
• Previous: 1.19

Here are the details as explained by the two agencies in our News Release of the Week, of the deal includes major banks Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo:

Independent Foreclosure Review to Provide $3.3 Billion in Payments, $5.2 Billion in Mortgage Assistance

WASHINGTON--Ten mortgage servicing companies subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing have reached an agreement in principle with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to pay more than $8.5 billion in cash payments and other assistance to help borrowers.

The sum includes $3.3 billion in direct payments to eligible borrowers and $5.2 billion in other assistance, such as loan modifications and forgiveness of deficiency judgments. The payments involve mortgage servicers operating under enforcement actions issued in April 2011 by the OCC, the Federal Reserve, and the Office of Thrift Supervision. The agreement ensures that more than 3.8 million borrowers whose homes were in foreclosure in 2009 and 2010 with the participating servicers will receive cash compensation in a timely manner. 

Eligible borrowers are expected to receive compensation ranging from hundreds of dollars up to $125,000, depending on the type of possible servicer error. 

This agreement includes Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. For these participating servicers, fulfillment of the agreement would meet the requirements of the enforcement actions that mandated that the servicers retain independent consultants to conduct an Independent Foreclosure Review. 

As a result of this agreement, the participating servicers would cease the Independent Foreclosure Review, which involved case-by-case reviews, and replace it with a broader framework allowing eligible borrowers to receive compensation significantly more quickly. The OCC and the Federal Reserve accepted this agreement because it provides the greatest benefit to consumers subject to unsafe and unsound mortgage servicing and foreclosure practices during the relevant period in a more timely manner than would have occurred under the review process. Eligible borrowers will receive compensation whether or not they filed a request for review form, and borrowers do not need to take further action to be eligible for compensation. 

A payment agent will be appointed to administer payments to borrowers on behalf of the servicers. Eligible borrowers are expected to be contacted by the payment agent by the end of March with payment details. Borrowers will not be required to execute a waiver of any legal claims they may have against their servicer as a condition for receiving payment. In addition, the servicers' internal complaint process will remain available to borrowers. 

The agencies continue to work to reach similar agreements in principle with other servicers that are not parties to the agreement announced today, but that are also subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing. 

OCC and Federal Reserve examiners are continuing to closely monitor the servicers' implementation of plans required by the enforcement actions issued in April 2011 to correct the unsafe and unsound mortgage servicing and foreclosure practices.

Gov. Scott: Federal Reserve Index Projecting Growth Highest Since 2005

(January 4, 2013) -- Today, Governor Rick Scott highlighted a recent national index which projects that Florida’s economy will continue to experience growth in 2013 at a pace higher than any point since 2005. The Federal Reserve Bank of Philadelphia’s State Leading Index report shows that Florida’s economy should grow by 1.7 percent during the first half of 2013. This growth rate is the strongest since August 2005, when the rate was 1.98 percent, and is up significantly from December 2010’s rate of 0.95 percent.

Governor Rick Scott said, “With Florida entering a new year, I’m confident that we’ll continue our progress in creating an economic climate that grows jobs for Florida families. As unemployment decreases, businesses expand and the housing market improves, we’re on our way to making Florida the best place in the world to do business – and even though we have more work to do, Florida’s economy is on the right path.

The Federal Reserve Bank of Philadelphia produces monthly leading indexes for each of the 50 states. They include variables that lead the economy including state-level housing permits and unemployment insurance claims among others.

Work stopping at Miami's ports could be catastrophic to our local economy and officials are also pointing to the national strike as being a danger to national security.  This is a very big deal.  

The latest on this potential strike comes from Florida Governor Rick Scott and FMCS Mediators who provide the following optimistic news that negotiations are proceeding and that the strike negotiations between the International Longshoremen's Association and the shipping companies have been continued into January 2013, where hopefully there will be a resolution without harm to our local economy.  Here, our news release(s) of the week:

Governor Scott Hopeful Agreement is Quickly Reached to Remove Threat of Port Shut Down

(December 28, 2012) -- Today, Gov. Scott made the following statement on the extension of the International Longshoremen’s Association and the United States Maritime Alliance negotiations.

Gov. Scott said, “The 30-day extension in the negotiations between the International Longshoremen’s Association and the United States Maritime Alliance is certainly good news for Florida. Cargo-related activity at Florida seaports supports more than 550,000 direct and indirect jobs, and contributes approximately $66 billion to our economy. We are hopeful these two organizations will quickly reach a final agreement to permanently remove the threat of a port shut down that would devastate families all across our state. We are asking the President to pursue any means possible – including invoking the Taft-Hartley Act – to avoid a work stoppage in the weeks ahead. A shut down of Florida ports is simply not an option.”

Statement by FMCS Director George H. Cohen on the East Coast Ports Labor Negotiations 

Release Date: 12/28/2012

FMCS Director George H. Cohen issued the following statement today on the the United States Maritime Alliance and International Longshoremen's Association labor negotiations: 

WASHINGTON, D.C. — “I am extremely pleased to announce that the parties have reached the agreements set forth below as a result of a mediation session conducted by myself and my colleague Scot Beckenbaugh, Deputy Director for Mediation Services, on Thursday, December 27, 2012: 

“The container royalty payment issue has been agreed upon in principle by the parties, subject to achieving an overall collective bargaining agreement. The parties have further agreed to an additional extension of 30 days (i.e., until midnight, January 28, 2013) during which time the parties shall negotiate all remaining outstanding Master Agreement issues, including those relating to New York and New Jersey. The negotiation schedule shall be set by the FMCS after consultation with the parties.” 

“Given that negotiations will be continuing and consistent with the Agency’s commitment of confidentiality to the parties, FMCS shall not disclose the substance of the container royalty payment agreement. What I can report is that the agreement on this important subject represents a major positive step toward achieving an overall collective bargaining agreement. While some significant issues remain in contention, I am cautiously optimistic that they can be resolved in the upcoming 30-day extension period.” 

“On behalf of our Agency, I want to thank the parties, especially ILA President Harold Daggett and USMX Chairman & CEO James Capo, for their ongoing adherence to the collective bargaining process, which has enabled them to avoid the imminent deadline for a work stoppage that could have economically disruptive nationwide implications.”

Certification of the Need for New Judges In Florida 2000 through 2012

Each year the Supreme Court issues its opinion certifying the need for new judges throughout the State of Florida, an annual requirement imposed upon the Court by the state Constitution. This opinion sets the presumed number of new judges that could be created in local counties and circuits. However, the legislature has the final say as to whether new judgeships are created and funded. 

For district courts and trial courts, the determination for need is based on a complex calculation of caseloads. The Supreme Court uses a system for determining caseloads that takes into account the differing amounts of time needed in different kinds of cases. More complex kinds of cases receive greater weight under this system than simpler cases. It is called the "Weighted Caseload System." Thus, the certification is not a statement of what the Supreme Court simply wants, but rather what it has determined is objectively needed using the calculations dictated by the weighted caseload system. 

For an overview of the district courts system, read the Workload Report and the follow up Review of Case Weights Report. Also contained in the Workload Report are the DCA Case Weights. 

For the trial courts system overview, read the Executive Summary of the Judicial Resource Study Final Report recommending it be used by the Court. A brief Introduction of how it came to be used in Florida also is available along with the full Report. In addition, the full Report includes the Trial Court Case Weights. 

Read the 2013, 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005, 2004, 2003, 2002, 2001 and 2000 certification opinions. Statistics on Legislative Funding of prior certification requests also are available. 

If a blank screen appears after you click on any of these links, hit the Reload or Refresh button on your browser. 

All inquiries: 

Craig Waters, (850) 414-7641, Publicinformation@flcourts.org

The Federal Reserve Board on Friday proposed rules to strengthen the oversight of U.S. operations of foreign banks.

December 14, 2012 (Washington, D.C.) -- The proposal would require foreign banking organizations with a significant U.S. presence to create an intermediate holding company over their U.S. subsidiaries, which would help facilitate consistent and enhanced supervision and regulation of the U.S. operations of these foreign banks. Foreign banks would also be required to maintain stronger capital and liquidity positions in the United States, helping to increase the resiliency of their U.S. operations. 

“The proposed rulemaking is another important step toward strengthening our regulatory framework to address the risks that large, interconnected financial institutions pose to U.S. financial stability,” Federal Reserve Chairman Ben S. Bernanke said. 

The proposal implements provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act in a manner that addresses the risks associated with the increased complexity, interconnectedness, and concentration of the U.S. operations of foreign banking organizations. 

“Applicable regulations have changed relatively little in the last decade, despite a significant and rapid transformation in the U.S. activities of foreign banks, many of which moved beyond their traditional lending activities to engage in substantial, and often complex, capital market activities,” Governor Daniel K. Tarullo said. “The crisis revealed the resulting risks to U.S. financial stability.” 

The proposal generally applies to foreign banking organizations with a U.S. banking presence and total global consolidated assets of $50 billion or more. More stringent standards are proposed for foreign banking organizations with combined U.S. assets of $50 billion or more. 

The Board proposed a number of measures, including: 

1. U.S. intermediate holding company requirement. A foreign banking organization with both $50 billion or more in global consolidated assets and U.S. subsidiaries with $10 billion or more in total assets generally would be required to organize its U.S. subsidiaries under a single U.S. intermediate holding company (IHC). Such a structure would create a platform for the consistent supervision and regulation of the U.S. operations of foreign banking organizations and help facilitate the resolution of failing U.S. operations of a foreign bank if needed.
2. Risk-based capital and leverage requirements. IHCs of foreign banking organizations would be subject to the same risk-based and leverage capital standards applicable to U.S. bank holding companies. This proposed requirement would help bolster the consolidated capital positions of the IHCs as well as promote a level playing field among all banking firms operating in the United States. IHCs with $50 billion or more in consolidated assets also would be subject to the Federal Reserve’s capital plan rule.
3. Liquidity requirements. The U.S. operations of foreign banking organizations with combined U.S. assets of $50 billion or more would be required to meet enhanced liquidity risk-management standards, conduct liquidity stress tests, and hold a 30-day buffer of highly liquid assets. The liquidity requirements would help make the U.S. operations of foreign banking organizations more resilient to funding shocks during times of stress.

The proposal also includes measures regarding capital stress tests, single-counterparty credit limits, overall risk management, and early remediation. 

The Federal Reserve is proposing a substantial phase-in period to give foreign banking organizations time to adjust to the new rules. Foreign banking organizations with global consolidated assets of $50 billion or more on July 1, 2014, would be required to meet the new standards on July 1, 2015. 

The Federal Reserve consulted with other members of the Financial Stability Oversight Council in developing the proposal.

Comments from the public will be accepted through March 31, 2013. 

Statement by Chairman Ben S. Bernanke 

Statement by Governor Daniel K. Tarullo

Statement by Governor Jeremy C. Stein

Federal Register Notice (1.01 MB PDF)

Commercial/Multifamily Mortgage Delinquency Rates Down in Third Quarter

WASHINGTON, D.C. (December 6, 2012) – Delinquency rates decreased for commercial and multifamily mortgage loans in the third quarter, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

“Commercial and multifamily mortgage delinquency rates for loans held by life companies, Fannie Mae and Freddie Mac all remain extremely low,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The delinquency rate on bank-held loans is at its lowest level since the beginning of 2009 and the delinquency rate for loans held in commercial mortgage-backed securities (CMBS) – while still elevated – continues to stabilize. If one removes the CMBS loans that are in foreclosure or REO, that delinquency rate is at its lowest since late 2009.” 

During the third quarter of 2012, the 60+ day delinquency rate for commercial and multifamily mortgages held in life company portfolios decreased 0.03 percentage points to 0.12 percent. The 60+ day delinquency rate for multifamily loans held or insured by Fannie Mae decreased 0.01 percentage points to 0.28 percent. The 90+ day delinquency rate for loans held by FDIC-insured banks and thrifts decreased 0.18 percentage points to 2.93 percent. The 30+ day delinquency rate for loans held in commercial mortgage-backed securities (CMBS) decreased 0.11 percentage points to 8.86 percent. The 60+ day delinquency rate for multifamily loans held or insured by Freddie Mac remained the same at 0.27 percent. 

The third quarter 2012 delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios was 7.41 percentage points lower than the series high (7.53 percent, reached during the second quarter of 1992). The delinquency rate for multifamily loans held by Freddie Mac was 6.54 percentage points lower than the series high (6.81 percent, reached in the fourth quarter of 1992). The delinquency rate for multifamily loans held by Fannie Mae was 3.34 percentage points below the series high (3.62 percent, reached during the fourth quarter of 1991). The rate for commercial and multifamily mortgages held by banks and thrifts was 3.65 percentage points lower than the series high (6.58 percent, reached in the second quarter of 1991). The rate for loans held in CMBS was 0.16 percentage points below the series high (9.02 percent, reached in the second quarter of 2011). 

Please note: In March 2012, MBA released a DataNote covering the performance of commercial and multifamily mortgages at commercial banks and thrifts over the entire year 2011. The DataNote found that commercial and multifamily mortgages had the lowest charge-off rates of any major loan type and had delinquency rates lower than the overall book of loans and leases held by banks and thrifts. The DataNote can be found at: www.mortgagebankers.org/research.

Construction and development loans are not included in the numbers presented here, but are included in many regulatory definitions of ‘commercial real estate’ despite the fact that they are often backed by single-family residential development projects rather than by office buildings, apartment buildings, shopping centers or other income-producing properties. The FDIC delinquency rates for bank and thrift held mortgages reported here do include loans backed by owner-occupied commercial properties. 

The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae and Freddie Mac. Together these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding. 

The analysis incorporates the same measures used by each individual investor group to track the performance of their loans. Because each investor group tracks delinquencies in its own way, delinquency rates are not comparable from one group to another. 

Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the third quarter were as follows: 

• Life company portfolios: 0.12 percent (60 or more delinquent);

• Freddie Mac: 0.27 percent (60 or more days delinquent);

• Fannie Mae: 0.28 percent (60 or more days delinquent);

• Banks and thrifts: 2.93 percent (90 or more days delinquent or in non-accrual);

• CMBS: 8.86 percent (30 or more days delinquent or in REO). 

Differences between the delinquency measures are detailed in Appendix A. 

The complete report is avaiable online. 

###

Governor Scott to Embark on Trade Mission to Colombia

Florida’s overseas trade missions position Florida as a global hub for business and creates jobs for Florida’s families

November 29, 2012 -- On December 2, Governor Scott will lead a trade mission to Bogotá, Colombia with more than 190 participants representing 116 Florida companies, statewide organizations and higher educational institutions to promote economic development opportunities in the Sunshine State. Colombia is Florida’s second largest trading partner, with more than $9 billion in bilateral trade. Florida also accounts for one-fourth of the total U.S. trade with Colombia, and 37 percent of U.S. exports to Colombia move through Florida. 

Enterprise Florida (EFI) has organized this trade mission and six other international business development missions Governor Scott has led since taking office. Previously, Governor Scott has led missions to Panama, Canada, Brazil, Israel, Spain and the United Kingdom. 

The goal of these international missions is twofold. First, they introduce Florida’s businesses, elected officials and community leaders firsthand to global business opportunities through introductions to prospective clients and markets that provide exporting potential for their local companies. Second, the missions aim to attract job-creating foreign direct investment into the state. These have been core activities for EFI since the late 1990s, soon after the public-private partnership was created to serve as the state’s lead economic development organization. 

EFI, along with Governor Scott, promotes Florida as a global business destination through its Florida Export Sales Missions. These “matchmaking missions,” organized with support from the U.S. Commercial Service, allow Florida businesses to meet one-to-one with foreign companies to discuss economic development and business opportunities. The nations targeted tend to be those that are major trade partners with Florida. Enterprise Florida facilitates affordable travel packages to enable businesses to meet prospective international clients. In addition, Governor Scott has led business development missions with EFI to promote economic development activities in targeted industries that are important to Florida’s economy. 

Governor Scott said, “Florida is perfectly positioned to be a global hub for business. We are committed to growing our relationship across the world in order to create jobs for Florida’s families, and that is why the missions we embark on with EFI are vital to Florida’s economic success. These missions help us attract new industries and businesses to Florida and further cement our standing as one of the nation’s top trading states. I look forward to visiting Colombia and with the recent ratification of the Free Trade Agreements, I am convinced that Florida and Colombia’s growing relationship will expand even more.”

Manny Mencía, senior vice president of Enterprise Florida’s International Trade Division, said, “A major goal of these missions is to help increase our state’s exports, which leads to more jobs, by paving the way to greater sales opportunities for Florida companies. Companies that export, grow faster and are more profitable than companies that do not – and it is clear that we must make this a top priority in Florida.” 

Florida Secretary of Commerce and Enterprise Florida President & CEO Gray Swoope notes that “international trade and foreign investment combined are responsible for more than 1.4 million Florida jobs, or about 17.3 percent of the state’s employment. Florida benefits greatly from a Governor who understands global trade’s effect on job creation and economic prosperity. When Governor Scott leads these missions, they not only generate a higher level of participation and results, but also attract a higher level of attention and enhance Florida’s business image in the host country. We applaud him for being a champion of our efforts to expand Florida’s international trade and business development.”

A Record of Success: International missions have been very successful for Florida, providing a notable return on the state’s investment into these business development activities and long-range jobs-producing opportunities.

Governor’s Business Development Mission to Panama 

Panama City 

March 17-18, 2011 

The objective of this mission was to assess the opportunities from the Panama Canal Expansion.

The delegation — six Florida port directors, business leaders and executives from the Florida Chamber of Commerce, Florida Association of Manufacturers and Associated Industries of Florida – enhanced Florida’s economic relationship with Panama through strengthened ties between state leaders and the Republic of Panama and Florida seaports with the Panama Canal Authority.

Governor’s Business Development Mission to Canada 

Montreal and Toronto 

June 6-10, 2011 

The objective of this mission was to promote investment into Florida.

Governor Scott and Florida economic development organizations participated in 155 FDI (foreign direct investment) recruitment meetings.

Governor Scott announced the Canadian security company Garda will relocate its U.S. headquarters to Boca Raton Florida, creating 100 professional jobs, which has been exceeded.

Team Florida Trade and Business Development Mission to Brazil 

São Paulo and São Jose dos Campos, Brazil

 October 22-27, 2011 

The objective of this mission was to provide Florida companies with an opportunity to increase sales of their products and services.

51 Florida companies participated in a two-day Florida expo and matchmaking event with Brazilian businesses. The Florida companies reported more than $96,684,500 in actual and expected future sales.

Governor Scott announced that Brazilian aircraft manufacturer Embraer will invest $50 million to establish new manufacturing facilities at Melbourne Airport. The project is slated to produce more than 200 jobs over five years.

Governor’s Business Development Mission to Israel 

Tel Aviv, Beersheva and Jerusalem

December 8-15, 2011

The objective of this mission was to promote investment into Florida and promote Florida as a platform for Israeli companies into the U.S., Latin American and Caribbean market. The Governor met with potential Israeli investors, delivered presentations on Florida business climate to Israeli business organizations and was a speaker in the GLOBES Conference. (GLOBES is the leading financial newspaper in Israel.)

Governor Scott met with six Israeli companies that are investment or expansion prospects for Florida and spoke at the seminar “Florida: Platform for Israeli Companies Doing Business in Latin America and the Caribbean,” the audience for which included 45 Israeli business executives representing SMEs with an interest in penetrating the Latin American market.

Governor’s Business Development Mission to Spain 

May 21-24, 2012 

The objective of this mission was to promote Spanish investment into Florida.

Included nine events and 13 meetings with potential investment projects. Governor Scott met Spanish companies interested in investing in Florida and delivered presentations on Florida business climate to several Spanish business organizations.

The following companies based in Spain will add 465 jobs within three years in Miami-Dade County:

Obrascon Huarte Lain (OHL USA), one of the world’s largest global construction companies is expanding its presence in the U.S. market by adding a new U.S. South Region headquarters in Northwest Miami-Dade County. Specializing in civil engineering, healthcare and university projects, OHL’s new location will add 255 direct jobs within three years and $22 million in capital investment.

Miami City Tour (formerly El Grupo Julià), a travel and tourism transportation company will open its first U.S. location in Miami Beach, adding 150 new direct jobs within three years and $4 million in capital investment.

TotalBank, a leading integrated retail-commercial bank in South Florida and a member of Grupo Banco Popular Español will further expand in Miami-Dade County, adding 10 new branches with 60 direct jobs within three years and $4 million in capital investment. TotalBank is already a leading integrated retail commercial bank in South Florida with more than $2.3 billion in assets and 19 convenient locations throughout Miami-Dade County.

BBVA, a Spain-based retail bank that entered the Florida marketplace through acquiring Compass bank, has 45 full-service branches in the Jacksonville area along with loan production offices in Orlando and Miami. This bank is expanding in the Miami market by offering domestic private banking and wealth management services. BBVA will add 45 jobs at an average wage of $60,000 annually

Team Florida Business Development Mission to United Kingdom 

London and Farnborough, England 

July 7-12, 2012 

The goal of this mission was to promote worldwide investment into Florida and further develop the state’s aviation cluster through access to the aviation and aerospace companies attending the biannual Farnborough Airshow.

Governor Scott and EFI recruitment staff met with more than 40 major aviation and seven Aerospace companies with investment potential in Florida.

Tradeshow participants reported $41 million in combined actual and expected export sales for the next 24 months and 250 sales leads.

Following this mission, Governor Scott announced that Pratt & Whitney will create 230 new jobs at an average wage of $81,000 as part of its efforts to establish jet engine manufacturing and test operations in Palm Beach County.

Many businesses also participate in multiple international missions because they provide incredible value and return for Florida’s companies. Below are recent success stories for Florida:

Magna-Bon International LLC 

Okeechobee-based Magna-Bon International LLC participated in the October, 2011 Brazil Trade Mission and will embark to Colombia next week. Magna – Bon produces and distributes agricultural products for algae and bacteria control. Magna-Bon owner Joel Agler says being affiliated with the missions Governor Scott leads brings credibility to his company when promoting and selling in overseas markets. For example, Magna-Bon is EPA-approved in the United States, which benefits the company domestically. Other nations may recognize that standard but also place higher value on a business prospect when it has alliances or support from its government. 

“It’s helpful to have government on your side,” Agler said. “It’s important to say we’re with Team Florida.” Agler’s 14 preset appointments in Brazil with “high quality people,” he describes, bore fruit in several ways, one of which being an import permit that now allows his products to be shipped into Brazil. 

“I learned a lot in Brazil, but Colombia will be better because of the Free Trade Agreement,” Agler said. He mentioned that he became interested in participating after hearing Governor Scott speak about the benefits of participating in these missions. “And the fact that the Governor is going is a win situation for us,” Agler said. 

Sunshine Industries 

Mita Burke, CEO of the family-owned, multinational Sunshine Industries in Coral Gables, said “The introductions, exposure and results we’ve gotten have been over the top. Since our participation in the mission to Brazil last year, we are exporting there consistently and successfully. It has really been very fruitful for us,” Burke said. “The introductions we were able to make during the mission have us very excited about the possibilities and the future is looking good. The companies we met with were all very receptive to our products. It’s a shame more people don’t pay attention to these types of services provided by Enterprise Florida.”

 yNs Med Spa, Inc 

The Brazil mission made a difference for the Naples company yNs Med Spa, Inc., which specializes in skin care products. CEO Ann Breusch said her company was able to collaborate with a large firm that will distribute its skincare products to dermatologists. 

“This is a game changer for our company. Just the partnership with Brazil will result in hiring five more employees. I cannot emphasize enough the importance of the Gold Key service for small businesses to help sell USA made products globally,” Breusch said. 

Businesses may qualify for these grants, which reduce the cost of participating in a trade mission. For the Florida mission, a trade expo and gold key package cost $1,200, but SMEs could qualify to pay only $500. “Without the Gold Key grant given to small businesses, we would not have been able to expand our international business especially during the current economic situation.” 

Embry-Riddle Aeronautical University 

Chancellor John R. Watret, Ph.D. acknowledges the university’s longstanding partnership with Enterprise Florida, which he says has opened doors to business opportunities worldwide. Embry-Riddle’s Worldwide Campus provides educational opportunities for aspiring professionals in the aviation and aerospace industry through an expanding global network of campuses and technology enhanced learning. 

“Of particular importance to Embry-Riddle has been expansion in emerging aviation economies,” Watret emphasizes. “Enterprise Florida’s support and mentorship was integral in the successful opening of a new subsidiary, Embry-Riddle Asia, headquartered in Singapore. EFI events and missions have created valuable connections with foreign governments, industry and individual customers in Europe, Asia, South America and the Middle East that will continue to enhance the university’s international brand and serve its mission of teaching the science, practice and business of aviation and aerospace around the world.”

City of Tampa 

Representatives from Florida’s communities are regular mission-goers in their quest to scope new opportunities for helping their city, county or region grow and prosper. 

“The trip to Colombia is an opportunity to tell our story and make the case to businesses abroad that Tampa is the best place to live, work, and play. I will market what we have to offer – Florida’s largest port, a world-class airport, and incredible economic potential,” said Tampa Mayor Bob Buckhorn.

###

Florida Governor Scott Public Stand in Support of Israel

Governor Scott issued the following statement in response to recent congressional resolutions expressing America’s unwavering commitment to Israel’s security:

“I commend Florida’s congressional delegation for supporting House Resolution 813 and Senate Resolution 599. These important resolutions reiterate America’s unwavering support for Israel during this difficult time. When I visited Israel last year, I learned firsthand of Hamas’ relentless campaign of terror against Israel’s southern cities. Now, after a year in which Hamas has launched nearly 900 missile and rocket attacks, Israel has initiated defensive measures to protect its citizens. Like all democracies, Israel has the inherent right to act in self-defense to end terrorist attacks. I stand firmly with our ally Israel and offer my continued prayers for peace and security.”

Below are the Congressional Resolutions:

Whereas Hamas was founded with the stated goal of destroying the State of Israel; 

Whereas Hamas has been designated by the Secretary of State as a Foreign Terrorist Organization; 

Whereas Hamas refuses to recognize Israel's right to exist, renounce violence, and accept previous agreements between Israel and the Palestinians; 

Whereas Hamas has launched thousands of rockets and missiles since Israel dismantled settlements and withdrew from Gaza in 2005; 

Whereas terrorists in the Hamas-controlled Gaza Strip have fired approximately 900 rockets and missile shells into Israel this year, an increase from roughly 675 attacks in 2011 and 350 in 2010; 

Whereas Hamas has increased the range of its rockets, reportedly with support from Iran and others, putting additional large numbers of Israelis in danger of rocket attacks from Gaza; 

Whereas, on November 14, 2012, President Barack Obama condemned the rocket fire from Gaza into Israel and reiterated Israel's right to self-defense; and 

Whereas Israel, a fellow democracy, has an inherent right to self defense in the face of terrorist attacks: Now, therefore, be it

Resolved, That the House of Representatives--

(1) expresses unwavering commitment to the security of the State of Israel as a Jewish and democratic state with secure borders, and recognizes and strongly supports its inherent right to act in self-defense to protect its citizens against acts of terrorism;

(2) reiterates that Hamas must end Gaza-linked terrorist rocket and missile attacks against Israel, recognize Israel's right to exist, renounce violence, and agree to accept previous agreements between Israel and the Palestinians;

(3) urges the United Nations Security Council to condemn the recent spike in Gaza-linked terrorist missile attacks against Israel, which risk causing civilian casualties in both Israel and Gaza; and

(4) encourages the President to continue to work diplomatically with the international community to prevent Hamas and other Gaza-based terrorist organizations from retaining or rebuilding the capability to launch rockets and missiles against Israel.

Attest: 

Clerk.

Language of Senate Resolution 599

Whereas Hamas was founded with the stated goal of destroying the State of Israel; 

Whereas Hamas has been designated by the Secretary of State as a Foreign Terrorist Organization; 

Whereas Hamas refuses to recognize Israel's right to exist, renounce violence, and accept previous agreements between Israel and the Palestinians; 

Whereas Hamas has launched thousands of rockets and missiles since Israel dismantled settlements and withdrew from Gaza in 2005; 

Whereas terrorists in the Hamas-controlled Gaza Strip have fired approximately 900 rockets and missile shells into Israel this year, an increase from roughly 675 attacks in 2011 and 350 in 2010; 

Whereas Hamas has increased the range of its rockets, reportedly with support from Iran and others, putting additional large numbers of Israelis in danger of rocket attacks from Gaza; 

Whereas, on November 14, 2012, President Barack Obama condemned the rocket fire from Gaza into Israel and reiterated Israel's right to self-defense; and

 Whereas Israel, a fellow democracy, has an inherent right to self defense in the face of terrorist attacks: Now, therefore, be it 

Resolved, That the Senate--

 (1) expresses unwavering commitment to the security of the State of Israel as a Jewish and democratic state with secure borders, and recognizes and strongly supports its inherent right to act in self-defense to protect its citizens against acts of terrorism; 

(2) reiterates that Hamas must end Gaza-linked terrorist rocket and missile attacks against Israel, recognize Israel's right to exist, renounce violence, and agree to accept previous agreements between Israel and the Palestinians; 

(3) urges the United Nations Security Council to condemn the recent spike in Gaza-linked terrorist missile attacks against Israel, which risk causing civilian casualties in both Israel and Gaza; and 

(4) encourages the President to continue to work diplomatically with the international community to prevent Hamas and other Gaza-based terrorist organizations from retaining or rebuilding the capability to launch rockets and missiles against Israel.

Mortgage Rates Near Record Lows As Home Construction Builds Up Steam

MCLEAN, Va., Oct. 18, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing fixed mortgage rates edging slightly lower with the 30-year fixed averaging 3.37 percent, just above its all-time record low of 3.36 percent, and the average 15-year fixed dipping to a new all-time record low at 2.66 percent.

News Facts

30-year fixed-rate mortgage (FRM) averaged 3.37 percent with an average 0.7 point for the week ending October 18, 2012, down from last week when it averaged 3.39 percent. Last year at this time, the 30-year FRM averaged 4.11 percent.

15-year FRM this week averaged 2.66 percent with an average 0.6 point, down from last week when it averaged 2.70 percent. A year ago at this time, the 15-year FRM averaged 3.38 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent this week with an average 0.6 point, up from last week when it averaged 2.73 percent. A year ago, the 5-year ARM averaged 3.01 percent.

1-year Treasury-indexed ARM averaged 2.60 percent this week with an average 0.4 point, up from last week when it averaged 2.59 percent. last week. At this time last year, the 1-year ARM averaged 2.94 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

"Mortgage rates remained more or less unchanged this week as home construction builds up steam. Construction on single-family homes jumped to an annualized rate of 11 percent in August, the strongest pace since August 2008. Over the first nine months of the year, single-family starts were 23 percent higher than the same period last year. Moreover, homebuilder confidence rose for the sixth consecutive month in October to the highest level since June 2006, according to the NAHB/Wells Fargo Housing Market Index."

Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter:@FreddieMac

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.

SOURCE Freddie Mac

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Terrorism Risk Insurance Vital to Commercial Real Estate Market, Says National Board of Realtors®

WASHINGTON (September 11, 2012) – American businesses rely upon the availability and affordability of terrorism risk insurance and it’s a vital component of most commercial real estate transactions, the National Association of Realtors® said in testimony today.

NAR’s 2012 Commercial Committee Vice Chair Linda St. Peter spoke before the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity on the 11th anniversary of the Sept. 11 terrorist attacks about the future of the Terrorism Risk Insurance Act. TRIA is a federal terrorism insurance program enacted in 2002 that establishes a risk-sharing partnership between the government, private insurers and commercial policyholders.

“Terrorism continues to be an unpredictable threat to our nation, and as the leading advocate for property owners, Realtors® know that American businesses must have adequate terrorism risk coverage,” said St. Peter, operations manager for Prudential Connecticut Realty in Wallingford, Conn. “The federal government’s terrorism risk insurance program helps protect the nation’s business sector by ensuring that adequate insurance coverage is available. That coverage is critical to helping maintain a strong and vital commercial real estate market.”

In her testimony, St. Peter said that after the Sept. 11 attacks private insurers backed out of the terrorism insurance marketplace, prompting Congress to enact TRIA, a federal insurance backstop that allows the federal government and private insurance companies to share losses in the event of a major terrorist attack. TRIA helped stabilize commercial real estate markets by making terrorism coverage available and more affordable over time. Congress has reauthorized the program twice; it currently expires on December 31, 2014.

While the commercial real estate finance market is starting to show signs of life, any disruption in the availability of terrorism insurance would have serious consequences on commercial real estate’s fragile road to recovery. According to industry sources, 84 percent of outstanding commercial mortgage balances require terrorism insurance.

Given that primary insurers remain largely averse to exposing themselves to potentially catastrophic terrorism losses, there are concerns about TRIA’s uncertain future and the potential unavailability of terrorism risk insurance at the end of 2014. “Any uncertainty could cause insurance prices to fluctuate or prompt insurers to drop terrorism coverage, causing commercial loans to go into technical default,” said St. Peter.

To that end, NAR supports the continued availability and affordability of terrorism insurance coverage because of its importance to commercial policyholders and the U.S. economy, and believes TRIA should be maintained beyond its current 2014 expiration date.

“Realtors® are concerned that TRIA’s potential sunset will create a spike in terrorism coverage premiums or make coverage unavailable in many markets; therefore, we believe the time has come for Congress to enact a long-term solution for insuring against terrorism – one that provides the needed market certainty to allow for continued economic growth and development,” said St. Peter. “Since the reinsurance industry has not yet been able to develop a long-term solution that would eliminate the need for the federal government’s terrorism risk insurance program, extending TRIA beyond its current 2014 authorization will help maintain a strong commercial real estate market and the health of the nation’s economy.”

The National Association of Realtors, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Florida Hospital Unveils Historic New Vision for Women's Health Care in Central Florida

Research show women's lifespan is not growing as fast as men's

ORLANDO, Fla., Sept. 18, 2012 - New research shows that the lifespan of women is not growing at the same rate as the lifespan as men. Florida Hospital believes that now is the time to put the focus back on women's health. On the front lawn of the hospital, Florida Hospital announced a renewed commitment to women's services that will span across Central Florida with three new buildings, additional services, world-class physicians and an innovative health and wellness platform to provide women with tools to live longer, healthier lives.

"Florida Hospital has been providing services to women for more than 100 years across our system and it has always been a part of who we are," said Lars Houmann, president and CEO of Florida Hospital. "But we know we can do more. Now is the time for us to step forward and put the focus on women's health."

As part of the commitment to extend women's health services to all women through Central Florida, Florida Hospital unveiled a comprehensive plan that is the largest commitment to women's services in Florida Hospital history.

"As a physician, I saw first-hand the stress women put on themselves and the types of unique health challenges women face on a daily basis," said Dr. Monica Reed, senior vice president of Florida Hospital. "We need to create new services for women that will bring innovative and personalized medical care together."

The three new buildings will house comprehensive services for women and expand on current services already available at Florida Hospital. The Celebration Health Women's Institute is a four-story 80,000-square-foot building that will house a variety of women's health services including breast care, radiation and oncology, gynecology and obstetrics. The Winter Park Women's Health Pavilion, a two-story building opening in fall of 2013, will be a comprehensive one-stop boutique center for women's health and wellness and also offer a variety of medical services. Florida Hospital Orlando announced plans for a new women's tower, the Florida Hospital Orlando Women's Pavilion, a 12-story patient tower that will feature more than 300 patient beds when it is complete in 2015.

"Women experience a variety of health challenges that can affect the entire home and family unit," said Marla Silliman, senior vice president of Florida Hospital. "We also know women are extremely busy and are more likely to put their own health concerns on hold. Part of our commitment will include a unique wellness and prevention program, designed just for women."

New mom Sarah Doherty knows from first-hand experience the importance of having access to high-quality medical care, for both her and her new baby.

"As a new mom of a one month old daughter, my life has completely changed," said Doherty. "I had a very difficult end to my pregnancy and spent eight weeks in the high risk OB unit at Florida Hospital on bed rest. The hospital's commitment to treating the health needs of women is of great comfort to me. I know Florida Hospital will be here to care for my daughter throughout her entire life."

Florida Hospital also announced the kick-off of Healthy 100 Women. Florida Hospital is on a journey to inspire the entire Central Florida community to live to a Healthy 100 years old. Healthy 100 Women will allow women to help shape what services and programs should be included as Florida Hospital embarks on this journey to expand women's health care services.