Cantor Morning News | Real Estate

· The Federal Deposit Insurance Corp. said Friday it sold securities backed by $471.3 million of performing single-family mortgages originated by 16 failed banks.

Mortgage investors scale back from FT.com

· Mortgage investors have been scaling back positions on fears that the US government might again intervene in the home loans market.

Fed Finds No Good Deed Goes Unpunished as Mortgage Trades Fail - BBG

· For all the good the Federal Reserve’s $1.25 trillion of mortgage-bond purchases have done, they’ve also left part of the market broken

· By acquiring about a quarter of home-loan bonds with government-backed guarantees to bolster housing prices and the U.S. economy, the Fed helped make some securities so hard to find that Wall Street has been unable to complete an unprecedented amount of trades. Failures to deliver or receive mortgage debt totaled $1.34 trillion in the week ended July 21, compared with a weekly average of $150 billion in the five years through 2009, according to Fed data.

· The difficulty of executing transactions may eventually drive investors away from the $5.2 trillion mortgage-bond market, which has historically been the most liquid behind U.S.

· Treasuries, potentially causing yields to rise

House Passes 'Slimmed Down' Version of FHA Reform from American Banker

· The House quickly passed a slimmed-down FHA reform bill Friday that appears to be an attempt to make it easier for the Senate to pass legislation before the August recess.

UBS's U.S. Mortgage Push – WSJ link

· UBS said on Sunday it plans to hire executives from Goldman Sachs and Bank of America to build its mortgages and lending business in the U.S.

data-center REITs, including Digital Realty and smaller rivals DuPont Fabros Technology and CoreSite, also stand to benefit.

· Building on U.S. Data Boom

· Thanks to easy access to stock and debt markets, and to the credit crisis shutting out rivals, Digital Realty Trust is among the biggest winners of the Internet-bandwidth boom, and one of the few bright spots in commercial real estate.

· http://online.wsj.com/article/SB10001424052748703999304575399372101377614.html?mod=WSJ_newsreel_markets

SPG: Simon Pares Outlet Deal

· Mall giant Simon Property Group Inc. has pared three properties from its $700 million acquisition of outlet-mall company Prime Outlets Inc. as the Federal Trade Commission continues to review the deal for antitrust issues.

· "There has been a modification to the transaction," said David Simon, Simon's chairman and chief executive, during a conference call with investors and analysts Friday. He added later, "We remain confident that we will close the remainder of the transaction."

· Mr. Simon declined to give the specifics of why the three properties noware being excluded or how the details of the deal have changed due to the reduced number of centers.

· However, a person familiar with the talks said the omissions are being made to mollify the FTC

· http://online.wsj.com/article/SB10001424052748703314904575399622265579144.html?mod=WSJ_hps_LEFTWhatsNews

Housing Bust Benefits Subsidized Tenants – WSJ link

· Overbuilding during the housing boom has left so many homes empty that landlords are now wooing government-subsidized renters.

Chinese State-Owned Firms Fueling Real Estate Boom – CNBC link

14.7 Million (19%) Of US Mortgages Have $770 Billion In Underwater Equity, $2.4 Trillion In Total Debt Impaired from zero hedge

Record Commercial Real Estate Deterioration In June As CMBS Investors Pray For 50% Recoveries from zero hedge –

· peruse the most recent RealPoint June 2010 CMBS Delinquency report. The result: total delinquent unpaid balance for CMBS increased by $3.1 billion to $60.5 billion, 111% higher than the $28.6 billion from a year ago, after deteriorations in 30, 90+ Day, Foreclosure and REO inventory. This represents a record 7.7% of total outstanding CMBS exposure. Even worse, total Special Servicing exposure by unpaid balance has taken another major leg for the worse, jumping to $88.6 billion, or 11.3%, up 0.7% from the month before. And even as cumulative losses show no sign of abating, average loss severity on CMBS continues being sky high: June average losses came to 49.1%, a slight decline from the 53.6% in May, but well higher from the 39.6% a year earlier. Amusingly, several properties reported loss % of 100%, and in some cases the loss came as high as 132.4%

Builders' pricing strategies are aimed at creating sales urgency from L.A. Times

· Even in the toughest times, price hikes are far more common in the new-home business than price cuts.

'Double-dip' worries hinge on housing from NY Post

· If the current economic recovery is feeling like a recession, you're in good company. Ex-Fed boss Alan Greenspan called our current mood a "quasi-recession" yesterday, warning the economy might contract again if home prices decline

PKY Parkway Properties purchases note for $33M

U.S. homeownership slides toward the lowest rate in a half century

· The rate of homeownership in the U.S. could fall to 62% by 2012, the lowest figure in 50 years, according to an industry estimate. The proportion of families owning their homes has been in steady decline since the housing bubble collapsed in 2006, the Census Bureau said. USA TODAY (02 Aug.)

Gaming, Lodging, Leisure

BYD… Boyd Gaming discontinues efforts to acquire Station Casinos assets

MGM… MGM MACAU enters into new senior secured credit facility in the amount of HKD7.41B

Research Away

Jefferies

Boyd Gaming (BYD) upgraded to hold from underperform at Jefferies Target increased to $9.50 from $7. Firm cites the announcement that the company will no longer pursue an acquisition of the Station Casinos assets.

JPMorgan

Getty Realty (GTY) initiated neutral at JPMorgan Target is $24.

Stifel Nicolaus

Brookfield Properties (BPO) downgraded to hold from buy at Stifel Nicolaus

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