Daily Report

Even as government officials prepare to unveil new standards this week for how banks treat millions of Americans facing foreclosure, The New York Times reports housing advocates and homeowners are skeptical the rules will be able to do something past efforts have not: provide a beleaguered borrower with one individual to help him or her navigate the mortgage maze. The entire process of seeking a mortgage modification is complicated and time-consuming, but few elements are as maddening as the inability to get through to a representative at the bank—or being asked for the same documents again and again. So the promise of a single point of contact has emerged as a crucial element in the much-ballyhooed $26 billion settlement reached earlier this month involving state attorneys general, the federal government and the five biggest mortgage servicers. These rules will apply nationwide and come with commitments of strong enforcement by federal and state authorities, but they carry a familiar ring for those experienced in the foreclosure process. Last April, the industry made many of the same pledges under a consent order with the Office of the Comptroller of the Currency; since then, consumer representatives say, there has been barely any improvement, adding that loan files continue to be handed off from one agent to another, sometimes weekly, and that even when a single person is assigned to a borrower's case, one phone call after another goes unreturned. So while most homeowner advocates welcome the new settlement, many have doubts the banks will actually change their conduct. Read the full story here.

This week's poll question: Do you believe the government will succeed in providing a single point of contact for borrowers navigating a mortgage modification?

The Capital Region Builders Association says it has booked an extra ballroom at the Baton Rouge River Center for its 35th annual Habitat Home & Garden Show in response to increased demand from exhibitors. The show, which takes place on Saturday and Sunday, March 3-4, is expected to draw 175 exhibitors. A number of educational seminars aimed at professionals and the public on topics including kitchen and bath design, outdoor kitchens, choosing and working with a builder or remodeler, buying a home for the first time, and energy efficiency are also planned. A complete schedule of events is to be posted on the association's website here as the show nears. Show hours are 9 a.m. to 7 p.m. Saturday, and 10 a.m. to 6 p.m. Sunday. General admission tickets are $8, while children ages 6 to 12 get in for $3, and those under 6 at no charge. Exhibitor space is still available, with additional details also available on the association's website.

DSLD Homes has purchased 31 lots off Plank Road in Zachary—about one-quarter mile north of Main Street and adjacent to the Oaks of Zachary subdivision—for $1,116,000, confirms DSLD Partner Saun Sullivan. Permits have already been pulled for the first five to 10 homes to be built in the subdivision, known as Redwood Lake, and the homes should be completed in the next few months, he says. "They'll probably be in the $140,000 to $170,000 price range," Sullivan says. "We're probably looking at a year to a year and a half to have the entire (31 lots) built out." The seller was Redwood Lake LLC, whose registered agents are Barry Causey and Ross Berthelot, according to the Louisiana Office of the Secretary of State. The deal closed on Thursday. In November 2010, the subdivision was the first to get Zachary City Council approval under the city's Uniform Development Code, which had been created a few months prior to provide a more detailed plan for land use, signage and new developments. Last month, DSLD picked up 34 lots in Zachary's Windsor Place subdivision—located off Main Street near La. Highway 964—for $1,479,000. Based in Denham Springs, DSLD was named Professional Builder magazine's 2011 Builder of the Year. Check out a Business Report feature about the company and the award here. —Steve Sanoski

A large industrial facility at 1345 Choctaw Dr., northwest of the Lockwood Avenue intersection and at one time occupied by Thomas Pipe and Valve, has sold for $1,425,000. The property is currently being leased by Exxon Mobil Corp.—whose refinery is located nearby—which uses it primarily for employee parking, according to Hank Saurage, who brokered the transaction for Saurage Rotenberg Commercial Real Estate. The property includes a bridge to the refinery, he says, making it convenient for employees. The 187,000-square-foot facility sits on 11.41 acres. At just more than $7.50 per square foot, the sale price reflects the condition of the buildings. "The property has good potential for redevelopment," Saurage says. "It is zoned for industrial use, and that allows for a lot of possibilities. Exxon recently announced a $200 million expansion, so there should be some additional demand for the property." The deal closed Feb. 14. The seller was AK Marchand LLC; and the purchaser, represented by Chris Shaheen with Saurage Rotenberg Commercial Real Estate, was Choctaw Development Properties LLC, which will continue leasing the property to Exxon.

(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)

While foreclosure levels are still above historical norms coast to coast, there is some good news coming from those who watch mortgage trends. According to the Mortgage Bankers Association's National Delinquency Survey, the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 7.58% of all outstanding loans at the end of the fourth quarter of 2011. That's a decrease of 41 basis points from the third quarter of 2011, and a drop of 67 basis points from a year prior.

"Mortgage performance continued to improve in the fourth quarter, reflecting the improvement we saw in the job market and broader economy. The total delinquency rate and foreclosure starts rate decreased and are back down to levels from three years ago," says Jay Brinkmann, MBA's chief economist and senior vice president for research and education. "A major reason is that the loans that are seriously delinquent are predominantly made up of loans originated prior to 2008, and this pool is steadily growing smaller as a percentage of total loans outstanding. In addition, employment is the key driver of mortgage performance, and the mortgage delinquency rate is actually falling faster than the unemployment rate is declining."

In our segmented market, mortgage performance really depends on where you are. In January, 1 in every 1,051 housing units in Louisiana was in some stage of foreclosure, according to RealtyTrac. That's pretty much middle-of-the-road compared to the national average, but higher than neighboring states Arkansas and Mississippi. East Baton Rouge Parish had the third-highest foreclosure rate in the state—1 in every 223—behind Jefferson and Saint Tammany parishes. Ascension Parish's rate was 1 in 458, while Livingston Parish's was 1 in 551 units. Within East Baton Rouge, the rate was relatively low in the city limits of Baton Rouge, at 1 in 937, while Baker showed a high level at 1 in 318.

There's a school of thought that believes local conditions will stabilize when foreclosure activity reaches normal levels, roughly 1.2% of outstanding loans. If that's true, Louisiana—as a judicial foreclosure state—may lag other areas in clearing out the foreclosure backlog. "States with non-judicial foreclosure systems are seeing the backlog of foreclosures clear more rapidly and are down to an average rate of 2.8%," says Brinkmann. "In contrast, the percentage of loans in foreclosure in the judicial system states has hit an all-time high of 6.8%, almost two and a half times higher than the rate for non-judicial states."

(Brian Andrews is a certified mortgage banker specializing in the financing of commercial real estate. His business is Andrews Commercial Real Estate Services, and he can be reached at brian.andrews@acmla.com.)

Pros and cons: Seventy fewer building permits were issued in East Baton Rouge Parish in January compared to the year prior, representing a 4.2% drop, according to a report from the city-parish Public Works Department. A total of 1,603 permits were issued on the month. The valuation of the projects receiving a permit, however, was significantly higher this January—$513,000—up 187% from the roughly $275,500 worth of projects permitted in January 2011. A nearly 12% drop in building permits in December left year-end numbers for 2011 off 3.5% compared to 2010. A total of 21,759 permits were issued in 2011, compared to 22,565 issued in 2010. Valuation of projects permitted in 2011 was $548.5 million, a 22.8% drop from the $710.5 million in projects permitted the year previous.

Done deal: A roughly 1.5-acre tract of undeveloped land off Corporate Boulevard between the Bocage Lake subdivision and the nearby BancorpSouth branch has sold for $975,815, according to records from the East Baton Rouge Parish Clerk of Court. A group called 6444 Associates, represented by manager and local developer Tommy Spinosa, is listed as the seller. The buyer is listed as Summa Professional Office Park, represented by manager and local doctor John Michael Burdine. The deal closed Feb. 10.

Outdoor room: Jamie Durie, host of HGTV's Outdoor Room, will be appearing at the Perkins Road location of Louisiana Nursery on Saturday to sign books and talk horticulture. The event will run from 1-5 p.m. Durie is the author of seven books, and founder and director of PATIO Landscape Architecture & Design, which carries its own line of merchandised products. Advance tickets are $25, which includes a copy of Durie's book The Outdoor Room, refreshments and a $10 gift certificate from Louisiana Nursery. Get your tickets here.