Mortgage brokers could face tougher rules

Florida regulators have proposed sweeping changes to state law that would make it tougher for mortgage professionals to get and retain licences and that would cap fees at 2 percent of a loan's value.

The changes aimed at providing greater protection for consumers against predatory lending -- come at a time when both federal and state lawmakers are focused on the mortgage business, an industry many view as a key driver of the economic predicament the nation is facing.

If passed by the Legislature in the upcoming session, the changes proposed by the Florida Office of Financial Regulation would also:

Miami foreclosures dip, fundamentals stay grim

NEW YORK, Dec 5 (Reuters) - Foreclosure actvity in Miami dipped in November, possibly because of a rise in short sales, but the broader long-term picture remains bleak, say brokers and foreclosure experts.

The number of newly scheduled auctions on foreclosed properties in Miami were down 21 percent to 679 from October, real estate research firm PropertyShark.com said.

According to RealtyTrac, total foreclosure activity in Miami fell 37 percent in November from October to 6,473 filings.

RealtyTrac compiles the total number of properties with at least one foreclosure filing -- default notices, auction sales notices and bank repossessions -- reported during the month.

Subprime lending, speculation and overbuilding were rife in Miami during the boom years of 2002 to 2006, generating first towering price spikes followed by steep declines and a surge in foreclosures.

Miami Center Building Acquired by Sumitomo Corporation of America

Sumitomo Corporation of America (SCOA) recently closed on the purchase of Miami Center building, at 201 South Biscayne Boulevard, in the Central Business district of Miami, Florida. The building, with spectacular views of Biscayne Bay and the city skyline has immediate access to Bayside Marketplace shopping & restaurant complex and the adjoining Inter-Continental Hotel Miami. Negotiations with the selling group, Crescent Real Estate Equities Limited Partnership and institutional investors advised by J.P. Morgan Asset Management - Global Real Assets, concluded on September 30, 2008 with a purchase price of $260 million.

Robert Obringer, general manager of SCOA's Real Estate Unit, sees solid value in this latest acquisition. "We are excited to add Miami Center to our portfolio of commercial properties here in the U.S.," explains Mr. Obringer.

"As part of our constant management of assets, we are always looking for opportunities that will maximize return on investment, and this property offers a strong upside potential for steady cash flow growth and long-term value appreciation," adds Mr. Obringer. The building is 96% leased to multiple tenants, including major tenant, Citi Group.

Pangs of Seller’s Remorse in Miami Market

MIAMI — For sale: one newly constructed three-bedroom, four-bathroom home near the University of Miami, with South African wood in the kitchen, marble from India, Egypt and Spain, and a $4,500 top-of-the-line garage door.

Listing price two years ago: $979,000. Listing price now: $599,000.

“I always figured the market trend wouldn’t catch me,” said Rafael Diaz, the owner and builder. He turned down $770,000 more than a year ago, he said, and has come to accept that he will never get the $700,000 he said he needed to break even. “By the end of the year,” he said, “I might just turn it over to the bank.”

Homeowners are struggling nationwide. But here in South Florida, the reversal of fortune has been especially severe, scrambling the psychology of a community that has historically treated real estate as a game of how-rich-can-you-get.

Overdeveloped and still building, this remains a place where conversations about the market are sugared with a rush of dreams and speculation. Now, though, people start with “if only I had sold when,” rather than “I should have bought.”