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By Bruce Norris .

The Norris Group Real Estate News Roundup 11/30/09

Monday, November 30th, 2009

Today’s News Synopsis:

Edward Pinto expects 20 percent of FHA’s mortgage loans to default. The Federal Reserve bought $16 billion worth of mortgage-backed securities last week. According to Michael Barr, Over 650,000 mortgage modifications are currently being processed, and over 375,000 borrowers will receive permanent modifications by the end of this year. A survey from Barclay’s shows that as a U.S. citizen’s net worth increases so does the proportion of their wealth invested in real estate.

In The News:

CNBC - “Fannie Mae to Tighten Lending Standards” (11-26-09)

“Fannie Mae plans to raise minimum credit score requirements next month and limit the amount of overall debt that borrowers can carry relative to their incomes”

The Daily Reckoning – “Federal Housing Administration Encourages More Bad Mortgage Loans” (11-26-09)

“An astounding 20 percent of the Federal Housing Administration’s $725 billion portfolio of mortgage loans will go into default as the result of the agency’s recent campaign to subsidize first-time homebuyers with little cash and weak credit. That prediction comes from an industry insider who has seen it all happen before: former chief credit officer of Fannie Mae, Edward Pinto, who recently testified before a House committee on the gathering storm of FHA mortgage defaults.”

Orange County Register – “Banks forced to buy back more loans” (11-26-09)

“Banks had to buy back $7.1 billion in defaulted single-family loans in the third quarter to reimburse mortgage investors, up from $1.9 billion in the previous quarter. Federal Deposit Insurance Corp. Call Report information shows that most of the buyback demands fell on JPMorgan Chase and Bank of America. Chase repurchased $2.7 billion in defaulted loans and BoA repurchased $2.3 billion to satisfy investor demands.”

Finance My Money – “FDIC too broke to Takeover Banks? No Bank Failure Friday on Black Friday. Can 5,300 Employees Deal with $5.3 Trillion in Deposits?” (11-30-09)

“The Federal Deposit Insurance Corporation (FDIC) was hammered this week when a third quarter report demonstrated that the FDIC was running in the red to the sum of $8.2 billion. This is troubling since the FDIC protects deposits in member banks up to $250,000 and funds covered by the deposit insurance fund (DIF) are over $5.3 trillion, this amount is over one-third of our nationwide GDP. The FDIC as of Q1 of 2009 has 5,381 employees.”

San Francisco Chronicle – “Gov’t increases pressure on mortgage industry” (11-30-09)

“The Treasury Department said Monday it will withhold payments from mortgage companies that aren’t doing enough to make the changes permanent. Officials will monitor the largest of the 71 participating mortgage companies via daily progress reports. The goal is to increase the rate at which troubled home loans are converted into new loans with lower monthly payments. At the end of October, more than 650,000 borrowers, or 20 percent of those eligible, had signed up for trials lasting up to five months.”

Inman – “Non-investors get Fannie REOs first” (11-27-09)

“Fannie Mae has launched a new program that’s intended to give public entities and buyers looking for a home to live in, rather a property to flip, a first crack at homes Fannie has foreclosed on. Under Fannie Mae’s ‘First Look’ initiative, only offers from buyers who intend to be owner occupants and buyers using public funds will be considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed.”

Housing Wire – “Fed Continues Slower Agency MBS Purchases” (11-30-09)

“The Federal Reserve continued its slower mortgage bond purchases, buying up $16bn of mortgage-backed securities (MBS) from government-sponsored entities in the week ending November 25. The Fed’s purchases shifted more toward Freddie Mac (FRE: 1.03 -6.36%), with $6.5bn of Freddie MBS purchased this week, from $5.9bn last week. The Fed bought $6bn from Fannie Mae (FNM: 0.88 -6.38%), compared with $4.55bn last week. The Fed also bought $3.5bn from Ginnie Mae this week, according to details released by the New York Fed.”

Housing Wire – “FHA Proposes Lenders Maintain $2.5m Net Worth” (11-30-09)

“Federal Housing Administration (FHA)-approved lenders could be required to hold increased net worth, meet stronger approval criteria and be held responsible for the actions of the mortgage brokers they do business with, if a recently proposed FHA rule is enacted. The rule is designed to reduce risks to the single-family insurance fund, which finances the FHA guarantees of mortgages in case of default. The FHA reported to Congress recently the insurance fund dipped below the Congressional-mandated 2% capital reserve threshold.”

Housing Wire – “375,000 HAMP Trials to Go Permanent, Treasury Says” (11-30-09)

“Under HAMP, the Treasury allocates capped incentives to participating servicers for the modification of loans on the verge of foreclosure. According to the latest report, more than 650,000 trials modifications are underway. Saxon Mortgage Services leads all servicers by providing trials to 44% of its eligible portfolio, according to the report. More than 375,000 borrowers are on track for a permanent modification by the end of the year, according to Michael Barr, assistant secretary for financial institutions at the Treasury.”

Bloomberg – “Wealthy Investors Plan to Buy More Real Estate, Barclays Says” (11-30-09)

“Twice as many people plan to raise their investment in commercial and residential property as intend to reduce it, the Barclays Wealth unit said in an e-mailed statement today. The richer the individual, the greater the proportion of wealth is placed in real estate, the survey found.”

Orange County Register – “Irvine home listings drop along with temps” (11-30-09)

“As of last Wednesday, there were 461 active homes for sale in Irvine, with an expected market time of 2.06 months, according to a biweekly report done by Steven Thomas of Altera Real Estate. That’s a benchmark tracking how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made.”

Looking Back:

One year ago, the CIRB reported that the value of non-residential building in 2008 had reached a total of $1.3 billion. Evan Gentry of G8 Capital predicted that Orange County would need another five years before real estate began to appreciate again. New home sales decreased by 18 percent in the West during October of 2008.

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150-TNG Radio – Craig Hill 11-28-09

Friday, November 27th, 2009

Craig-Hill

Hard Money Lender for The Norris Group


(Full Bio)

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This week Bruce is joined once again by Craig Hill. Craig has been handling The Norris Group’s hard money loan business for over ten years, and he is a trustee investor.

Many new investors think that it is easy to get into the real estate buying business. To reduce risk, The Norris Group uses Rick Solis to appraise properties through the eyes of an investor. Sometimes new investors will find a property, and they think they have a good deal, but then Rick will look at the property and find problems with their deal. For an example, an investor might try to buy a property in an area with comparable sales located on 8,000 square foot lots, but the property they are trying to buy is on a 4,000 square foot lot. That 4,000 square foot difference could make a $20,000 dollar difference. Rick can easily spot these devaluing problems and save these new investors money. Craig has received multiple responses from investors who are thankful for Rick’s services.

A new investor wants to get their first house under their belt. One of the things a new investor may do is try to prove that a house is a good deal, rather than let the evidence speak for itself. These people might feel that if they can just buy a house and sell it for a profit then everything will be a little bit better. Those are the kinds of people that will typically make a mistake. When people are trying to make up for lost time, they often try to do too much too quick. You cannot become a millionaire in one deal, but you can ruin your finances in one deal. Craig has met many people who tried to be too aggressive, and then lost a lot of money. During the boom, people felt like they couldn’t lose, and they didn’t want to believe that the up cycle would end. Now people are starting to have success again, and Craig fears that they will go back into that same mentality. Craig warns that you should be able to handle a rental property. If a rental property is going to ruin your life then you shouldn’t be investing.

If someone came to The Norris Group with a great deal on a $1.2 million dollar house, The Norris Group would probably not help that investor, because there is a lot of risk involved in that deal. If an investor discovers that his $1.2 million house is not really worth $1.2 million, or if the investor starts making $7 grand payments, they can severely damage themselves.

If Craig had to choose between a borrower with a high credit score and low cash reserves, or a borrower with a lower credit score and more cash reserves, he would choose to loan to the borrower with high cash reserves. When you are dealing with investments, you need to have cash. If an investor doesn’t have enough cash reserves, he may want to think that he can make the investment work with only six months worth of reserved payment. His property may take more than six months to pay off, and his credit will not help him, because The Norris Group’s program is not credit based. They cannot get a loan to improve their situation. If a person has a lot of cash reserved, it makes it better for both the investor and the lender.

Many unexpected problems can occur when you invest in a house. Craig bought one house to fix up and flip, but the sewer immediately needed to be fixed. If an investor cannot handle those kinds of surprises, then she is jeopardizing herself.

If Craig had to choose between a borrower with cash into the deal, or a borrower that got a superior discount in the purchase who is looking for a zero down loan, he would still choose the borrower with cash in the deal. There might be a reason why the other client got a superior deal that won’t reveal itself until later. Also, the zero down investor may not be capable of handling the monthly debt on the investment. If you have $50,000 in cash reserves, you will be much more comfortable making an investment. When you do not have that kind of cash in reserve, you may feel a need to make a deal, and that causes problems. People often get caught up in the idea of making a property investment, but their ideas may not work out in reality.

If Craig had to choose between a borrower who is an experienced investor with a 650 FICA score and has a proven track record with The Norris Group, or a new borrower with a 750 FICA score and the same amount of money, Craig would choose the experienced investor with a good record. Many people have had troubles within the past few years, so a 650 FICA score may mean that they have also had trouble, but they are working through it. A track record with The Norris Group is important, because that experienced investor respects their business relationships. Dealing with a lender who knows their track record allows them to do their business, and if their investments are their livelihood, then they will probably not sacrifice their relationship with their lender.

When loaning to an owner occupant, there is never an intention to develop a relationship for future business. An owner occupant might be taking a severe risk with the $20,000 they take in a loan.

If Craig had to choose between a borrower with a job, good credit score, and a money partner, or a borrower who is a self employed, full time investor using their own money, Craig would choose the self employed investor. People who use money partners are historically known to cause problems. They may not take into account that surprises will come up, such as unexpected repairs or a delay in the selling process. The Norris Group will do business with money partners, but Craig is much more involved with those people. Craig often requires the partner to sign the deal along with the borrower, because they need to know that a property is a responsibility.

If Craig had to choose between a borrower who is a cocky and experienced investor with lots of money, or a new investor with less money and a humble attitude open to learning, Craig would probably choose the humble investor. He strays away from the know-it-all attitudes. Craig has had thousands of conversations with investors, and he has a good sense for the kind of person who will work hard to protect his investment. The cocky, know-it-all investor is often a one-time deal. The cocky investors will often call Craig, give him a big conversation about how this deal is an opportunity for him, but their “deal” is really only borderline. Sometimes these cocky, experienced investors will be trying to use Craig after their other lenders reject them.

Over the years, Craig has developed a good sense for when people are not telling him all their problems. When you have had thousands of conversations with borrowers, you develop a sense for conversation patterns, which lead to certain outcomes. It would be difficult for Craig to have an original conversation at this point. He has probably heard what any new investor will tell him many, many times. The Norris Group does not want to do deals with just anyone who can qualify. The Norris Group wants to do deals with people that make good matches with the company. Craig deals with both borrowers and investors, and he wants to make sure that his deals are winning deals for both ends.

The Norris Group does not work with pooled trust deeds and never will. If you used pooled money, you have much less control. When an investor buys a trust deed, he knows the property it’s going to be on, the amount, and he knows what the appraisal on the property is worth. The investor can easily find out what his investment is. With pooled funds (fractionalized trust deeds), the manager of the pool has a lot of discretion. You might have some possible investments that you would not take if you personally inspected them.

The reality of what is happening to your investment can be masked in a pooled trust deed. In a pooled trust deed, you make regular payments. You can make these regular payments for a long time, but by the time your investment is not worthwhile, your investment may be upside-down. With an individual investment, you are receiving monthly payments from one person on one trust deed, so you would know after 30 days if the borrower was 30 days late.

There are some lenders who do not require monthly payments, but Bruce always does. He wants them to know that they have a debt, and it prevents them from getting overextended.

A pooled investment might attract a smaller investor. The Norris Group does not usually give out loans that are only worth $30,000 to $40,000. A person who has $50,000 they want to invest, but they require the $500 dollar payment every month to live on, then they are not a good candidate for a trust deed.

Bruce asks Craig to explain how he makes people feel comfortable investing. Craig likes to show people examples of what The Norris Group does. Craig sends new investors a copy of a The Norris Group appraisal, so they can see what The Norris Group does to calculate value. Once Craig makes people feel comfortable with what they are lending on, they are anxious to invest in a trust. The majority of the people that work with The Norris Group trust deeds want to ramp their investment up as high as it can go. When they do ramp it up, the majority of them have chosen that as one of their main investment vehicles. Many people who deal with trust deeds have a diversity of investments. They do not want to put all their eggs in one basket.

The Norris Group sees trust deed investments as a great way to offer diversification of a retirement account.  You can also diversify your trust deed investments by selecting multiple areas.

The Norris Group has a new 8-year loan program for investors who plan to buy and hold a property as a rental. This new program has opened up a new investment at 9% for 8 years. This program is great for people who have IRA money, or money in 401Ks, because they can earn 9% tax free. The nice thing about this 8-year program is that the loan is intended to go on for an extended period.

Craig can be reached at 951-780-5856. He will be glad to talk to you about borrowing money.

See Craig’s full biography HERE.

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The Norris Group Real Estate News Roundup 11/25/09

Wednesday, November 25th, 2009

Today’s New Synopsis:

The MBA’s survey shows that mortgage applications decreased by 4.5 on a seasonally adjusted basis from last week. Freddie Mac’s survey shows that the 30-year FRM decreased by 0.7 points from the previous week. Standard & Poor’s, Moody’s, and Fitch are being sued for inflating ratings.

In The News:

Mortgage Bankers Association - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (11-25-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November 20, 2009.  The Market Composite Index, a measure of mortgage loan application volume, decreased 4.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5.8 percent compared with the previous week.”

Housing Wire – “30-Year Fixed Mortgage Rates at Historic Lows” (11-25-09)

“Freddie Mac’s (FRE: 1.12 -0.88%) weekly survey put the 30-year FRM at 4.78% with a 0.7 point, down from last week when it was 4.83% and one year ago when it was 5.97%. This week’s rate ties the record for lowest ever in the weekly survey’s history, which was previously reached twice in April this year.”

Housing Wire – “Fannie’s MBS Issuance Slides 31% in October” (11-25-09)

“Fannie’s gross mortgage portfolio declined at an annualized rate of 27.8% and stood at $771.4m at the end of the month, according to the monthly summary”

DSNews - “Rating Agencies Face Lawsuit for Allegedly Misleading MBS Investors” (11-24-09)

“Cordray is suing Standard & Poor’s, Moody’s, and Fitch for allegedly providing inflated ratings of mortgage-backed securities (MBS) in exchange for lucrative fees from the securities issuers the agencies say they were objectively evaluating. The lawsuit was filed Friday in a U. S. District Court on behalf of five Ohio public employee retirement and pension funds. Cordray says the case is not intended to take on the status of a class-action lawsuit.”

DSNews - “Bank of America Helps 100,000 Homeowners Avoid Foreclosure” (11-24-09)

“In an effort to help borrowers with Countrywide subprime and option-ARM mortgages avoid foreclosure, Bank of America created its National Homeownership Retention Program (NHRP), providing mortgage relief to 100,000 eligible homeowners in just 10 months. In the third quarter alone, more than 31,000 customers received assistant through the NHRP, according to the bank’s quarterly progress report.”

Bloomberg - “Sales of New Homes in U.S. Rise to Highest Since 2008″ (11-25-09)

“Purchases of new homes in the U.S. rebounded more than anticipated in October as buyers rushed to take advantage of a government tax credit before it expired. Sales rose 6.2 percent to an annual pace of 430,000, the highest level since September 2008, the Commerce Department said today in Washington. The median sales price fell 0.5 percent and the number of unsold homes reached a four-decade low. ”

Bloomberg - “Fed Officials Watch Asset Prices for Signs of ‘Excessive Risk’” (11-25-09)

“Federal Reserve policy makers said for the first time that their decision to cut interest rates to zero may be fueling undue financial-market speculation even as they called the dollar’s decline ‘orderly.’ The Federal Open Market Committee said its policy of keeping rates low might cause ‘excessive risk-taking’ or an ‘unanchoring of inflation expectations,’ according to minutes of its Nov. 3-4 meeting released yesterday.”

Bloomberg - “First American Flips Real Estate Stocks to Beat Fund Rivals” (11-25-09)

“John Wenker and Jay Rosenberg, managers of First American Real Estate Fund, buy and sell stocks more often than their peers, a strategy that helped them outperform 98 percent of rivals in the past decade. The $1.1 billion fund’s turnover ratio, a measure of how often its holdings are traded, is 150 percent, according to data from Morningstar Inc. That compares with an average of 104 percent for all real estate funds. ”

Realty Times – “Internet Stealth Auctions Protect Brand, Generate New Homes Sales” (11-25-09)

“Brown needed to sell his five models. He hired an internet marketing company to help him, then challenged them to design a program around a ‘call to action.’ The company, SaleAMP, suggested the developer give new home buyers what resale real estate thrives on: the opportunity to make an offer- but to do it quietly, fast and with internet marketing thrust at full throttle.”

Realty Times – “Short Sale Sellers Need To Guard Against ‘Double Whammy’ By Bank and I.R.S.” (11-25-09)

“Bad enough that a short sale involves the loss of one’s home with no equity to show for it, and a credit negative that may last for years; it also has the potential to produce two very bad after-effects. One is that the lender, or the lender’s assignee, may continue to pursue the beleaguered seller for the remainder of the debt. The other is that the I.R.S. may come knocking on the seller’s door, seeking tax on the amount of debt that was unpaid. ”

Looking Back:

One year ago, a survey from AARP showed that 25 percent of baby boomers desired to move from their current home. The MBA reported that 32.9 percent of all mortgage applications were government-insured. Total home sales in 2008 increased by 17 percent from 2007.

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The Norris Group Real Estate News Roundup 11/24/09

Tuesday, November 24th, 2009

Today’s News Synopsis:

The CIRB reports that homebuilders pulled 6 percent less permits from September. American banks decreased lending by 2.8 percent in the third quarter. The FOMC suspects that the economy will take 5 years to return to an acceptable rate of growth.  According to First American CoreLogic, 23 percent of all US homes are less valuable than the mortgages owed on them.

In The News:

CBIA - “California Housing Starts Continue Decline in October, CBIA Announces” (11-24-09)

“According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,815 total housing units in October, down 6 percent from September, and down 33 percent from October 2008. Permits for single-family homes totaled 2,017, down 9 percent from the previous month and down 14 percent from same period last year, while multifamily permits totaled 798, up 5 percent from September but down 57 percent from a year ago.”

Los Angeles Times – “Index shows moderate gain in home prices in September” (11-24-09)

“Home prices in 20 U.S. cities ticked up modestly in September, marking the fifth consecutive month of improvement, according to a closely watched national index released this morning. The Standard & Poor’s/Case-Shiller index increased 0.3% from the prior month on a seasonally adjusted basis, after a 1.1% rise in August. The index fell 9.4% from September 2008 and marked the narrowest year-over-year decline since the end of 2007.”

The Washington Post – “Decline in lending is largest since 1984″ (11-24-09)

“Lending by American banks plunged by 2.8 percent in the third quarter, the largest drop since at least 1984 and the fifth consecutive quarter in which banks have reduced lending, the Federal Deposit Insurance Corp. reported Tuesday morning.”

Housing Wire - “BarCap Acquires Commercial Real Estate Holdings Firm” (11-24-09)

“Barclays Capital, in a joint venture with Goff Capital, acquired Crescent Real Estate Equities Limited Partnership, or Crescent, from Morgan Stanley Real Estate Funding II.”

Housing Wire – “FOMC Sees Sustained Growth Five Years Away” (11-24-09)

“It will be at least five years before the economy experiences a sustainable rate of growth and levels of unemployment and inflation acceptable to the Federal Reserve, the Federal Open Market Committee said in its Nov. 4 meeting.”

Housing Wire – “FHFA Quarterly HPI Up Slightly in Q309″ (11-24-09)

“US house prices inched slightly higher in Q309 compared to Q209 in the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI). The HPI uses sales price information from mortgages acquired by the government-sponsored enterprises (GSEs), which increased 0.2% quarter-over-quarter. Year-over-year, the purchase-only HPI decreased 3.8% in the third quarter.”

Housing Wire – “Negative Equity, Not Job Loss, Primary Driver of Defaults” (11-24-09)

“if coming defaults are caused by unemployment, then the relevant response, says Goodman, would be to subsidize mortgage payments. On the other hand, if negative equity triggers defaults, then principal reduction must receive a higher priority in modification program waterfalls.”

Bloomberg - “Almost One in Four U.S. Homeowners Are ‘Underwater’” (11-24-09)

“The number of U.S. homes worth less than the debt owed on them reached almost 10.7 million, or 23 percent of all mortgaged properties, at the end of the third quarter, according to a report from First American CoreLogic.”

Orange County Register – “The biggest home seller mistakes” (11-24-09)

“Learn about your local market. What is selling and how long is it taking to sell? Find out what the trends are in your neighborhood. Is the market rising, falling or flat? How are local inventory levels?”

Looking Back:

One year ago, existing home sales decreased by 3.1 percent in October. The U.S. government announced a plan to spend 7.7 trillion dollars to ease credit problems. Downey Financial said it would file for bankruptcy.

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The Norris Group Real Estate News Roundup 11/23/09

Monday, November 23rd, 2009

Today’s News Synopsis:

The NAR reports that existing-home sales increased by 10.1 percent in October. Statistics show that California workers, who earn the national median income, can afford 59.1 percent of the new and existing homes during the 3rd quarter. According to the MBA, multifamily lenders provided $88 billion in new financing for apartment buildings with 5 or more units during 2008.

In The News:

NAR - “Existing-Home Sales Record Another Big Gain, Inventories Continue to Shrink” (11-23-09)

“Existing-home sales – including single-family, townhomes, condominiums and co-ops – surged 10.1 percent to a seasonally adjusted annual rate1 of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.”

CBIA - “California Housing Affordability Continues to Decrease, CBIA Announces” (11-23-09)

“On a statewide basis, the HOI found that a family earning the median-income could have afforded 59.1 percent of the new and existing homes that were sold during the third quarter, down from 62.7 percent in the second quarter.”

Mortgage Bankers Association – “MBA Reports Multifamily Lending 40 Percent Lower in 2008 Than 2007; Market Remained Broad and Diverse” (11-23-09)

“In 2008, 2,877 different multifamily lenders provided a total of more than $88 billion in new financing for apartment buildings with five or more units, according to an annual report from the Mortgage Bankers Association (MBA). The 2008 dollar volume represents a 40 percent decline from 2007 levels.”

Bloomberg - “Commercial Property Prices to Fall Up to 55%” (11-23-09)

“Commercial real estate prices may fall as much as 55 percent from October 2007’s peak and the recovery will be slow amid rising unemployment and tepid consumer spending, Moody’s Investors Service said.”

Inman - “Front-loaded loans: bad for borrowers?” (11-23-09)

“A necessary consequence of full amortization with equal monthly payments is that the composition of the payment between interest and principal changes over time. In the early years, the payment is mostly interest; in the later years, it is mostly principal. At 6 percent, it does indeed take 21 years to pay down the balance of the $100,000 loan to $50,000. This is the factual foundation of the front-end-loading argument.”

Orange County Register – “Weakest home market in O.C.? Garden Grove” (11-23-09)

“How’d Garden Grove 92844 do so poorly? It ranked 82nd of 83 for pricing; 67th for sales; and 69th in terms of foreclosures frequency in the community. In the previous quarter, this ZIP ranked 56 of 83 overall.”

Orange County Register – “Will ‘good faith’ be bad for borrowers?” (11-23-09)

“Another purpose of the GFE2010 is to ‘bring clarity’ to the market ‘through a simpler and better understanding of their costs.’ To do this HUD took the previous 1 page Good Faith Estimate that clearly delineates all charges and tailored perfectly into the HUD/RESPA required Truth In Lending disclosure (which discloses APR) and created a three page form that does not delineate any fees, lumps charges for non-related services together, separates out services required by the loan process from those the borrower can select and has no relation to the Truth In Lending disclosure or the Good Faith Estimate required under Reg Z by the Fed.”

Realty Times – “Washington Report: Congress Pressures FHA” (11-23-09)

“Congressman Spencer Bachus of Alabama said FHA’s declining capital reserves, estimated by independent auditors as barely one quarter of the congressionally-mandated minimum, raises the possibility that FHA could come hat in hand to Congress seeking a bailout. ”

Realty Times – “The Cost of the Home Buyer Tax Credit” (11-23-09)

“If the stats hold true, and that is about half of all buyers are first-timers, then there were 2.25 million buyers that qualified (assuming they didn’t go beyond the income limits – which many did). But for simplicity, we’ll say they all qualified. Simple math puts the tax credits at $18 billion for 2009 that doesn’t have to be paid back. For all the money that’s being floated out there to stimulate the economy, this is probably the best plan in play.”

Looking Back:

Wells Fargo made plans to cut 80 percent of all of its wholesale mortgage jobs. Citigroup’s year losses had reached $20 billion, and the company cut 52,000 jobs. A study showed that borrowers who attended home ownership education programs were 20 times less likely to foreclose.

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149-TNG Radio – Craig Hill 11-21-09

Friday, November 20th, 2009

Craig-Hill

Hard Money Lender for The Norris Group


(Full Bio)

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This week Bruce is joined by Craig Hill. Craig has been handling The Norris Group’s hard money loan business for over ten years, and he is a trust deed investor himself.

Bruce begins by asking Craig what the difference is between Craig’s California private lending business and other lending businesses such as Bank of America or FHA. Craig says that there is not as much of a difference as people think. The main difference is that you are lending to a different client and for many reasons. Craig has the ability to lend within a shorter time frame, and he will lend on properties that banks would lend on due to conditions. Craig’s business deals to people who have more need for a quick loan.

The funding source in Craig’s business is very different from a bank. Banks have a pool of money, but with Craig’s hard money, there is an individual who has money to lend and they get a good return on the loan they end up making.

Hard money lending is a generalized term for private money and private loans. The Norris Group is a private broker for investors. Hard money has a negative connotation to it because it can be expensive and, in the past, it was given to people with bad credit.

When Bruce and Craig first met, Craig was working for another company in Orange County. Bruce asks Craig what his typical client looked like in that environment. Most of Craig’s clients were delinquent on their trust deeds. They had poor credit because of some sort of problem they had been affected by. Hard money was a way for those people to get rid of some of their problems, and move on.

When Bruce and Craig met, Bruce was an investor. He had found a couple properties, but he had maxed out his credit line. Bruce had never met with a hard money lender, and Craig had never met with an investor. If you have a house that is worth $100,000, hard money lenders are typically willing to lend 60 to 70 percent of what that house is worth. Bruce had two houses that he wanted a loan on, but he was only asking to borrow 50 percent of what those houses were worth. This made Craig realize that working with Bruce was a great opportunity. Craig had a hard time finishing those loans though, because at that time, people had the mentality that a house was only worth as much as what you were willing to pay for it. Even if two houses were appraised at equal value, the lender would have still wanted to lend to the person in foreclosure.

In the 1990s, there was usually a first deed on a property when a hard money was asked for. Most of the hard money loans that Craig did at that time were between $10,000 and $25,000. 80 percent of the home was typically covered in the borrower’s first loan, and Craig gave them a small loan behind that first loan. The interest rate was typically 15 percent. Most of the companies that did hard money dealt with brokers. Craig’s company worked with brokers who would refer loans to them. If there were 10 or 15 points, those brokers would receive half of that value. There were a few more people involved in the transaction.

Bruce’s company does not rely on referrals. The Norris Group has a great network, so they do not need to use referrals. Craig had to frequently persuade brokers that it was better for borrowers to get a $15,000 second loan. The brokers wanted Craig to give them a new $80,000 first loan, because that generated more income. With The Norris Group, Craig does not have to worry about this problem, and he can choose the best option for each client.

Most hard money loans are still very referral based. If you are not talking directly to the borrower, a broker may not give you all the information you need, to make the best decision for the client. The broker may try to make you believe a false story.

Bruce and Craig quickly became comfortable with talking to each other, because they were dealing with the same people. Bruce was talking to people in foreclosure who wanted to sell their homes, and Craig was talking to those same people about making a loan.

Investors had come to Craig before Bruce, but it was with a concept rather than a property. People would ask Craig what he might do in made-up scenarios, but Bruce was the first person to come to him with his two properties. Craig thought Bruce’s idea gave a lot of security to the investor. After Craig’s experience with Bruce, he chose to only give loans to investors. The second investor Craig dealt with was Mike Cantu, and this loan plan worked well for Mike as well.

Mike Cantu is still borrowing from The Norris Group. That consistency would not occur for a loan business, or for people who were invested in trust deeds. People who loan to those kinds of borrowers will have to work very hard just to get them to borrow money once. Lenders who deal with investors will only have to find a few people who can borrow 40 or 50 times a year for them. It did not take Craig very long to realize that this was a very sensible business plan.

Most people think of the investors as the risky borrower, and the occupant as the safe one, but this is not true. Bruce asks if there are different rules for loaning to occupants. There is more protection for occupants, and there are different regulations on loan amounts. When Craig is doing a loan for an investor, he understands that the investor needs money to fix a home and sell it. When you give a loan to an owner occupant, you probably never know why that person needs the money, and Craig has been shocked in the past by the ways owner occupants will use their loan money.

Hard money loans are not a cheap resource. An owner occupant would not want a hard money loan unless they have no other choice. An investor taking a hard money loan probably has the option to use another loan option.

When checking to see if an investor is qualified for The Norris Group’s hard money loans, Craig checks their credit, the amount of debt leverage they have, and cash reserves. Someone with good cash reserves is a good candidate for hard money loans. Most investors take these loans for single-family residences and small units. The Norris Group is currently not offering loans on land, and tends to stay away from commercial real estate. In the future, The Norris Group may give loans for construction. Craig asks people how they found the property and how long it has been on the market. If an investor finds a property that has been on the market for 60 days with no price change, Craig will be cautious, because there is probably a reason why that property has not been sold.

Some passive investors are really looking to get involved in the market by getting properties flipped to them by a wholetail investor who passes it on to them for a small fee. The fees being tacked onto these deals sometimes wipe out a lot of the profit. Most wholesalers get a nominal fee for the work they have done. Craig recently talked to a man who was buying a $400,000 house for $349,000. He though he had a good deal, until he discovered that the original buyer had just paid $249,000 for it.

It is very important to predict real estate cycles. We are currently in a good cycle, but you still have to be careful when buying. If the cycle is going up, lenders can do deals according to a loan to value scale. In the current cycle, Craig stays away from deals that can take 6 months to complete, because a lot of things can change within 6 months. In the last six months, investors have had a “can’t lose” mentality. This can be problematic, because if investors feel like they cannot get a bad deal, then they may pay too much. The Norris Group encourages people to not get involved with long-term project houses, unless they have experience. Craig often asks his client if they have a background in construction. Craig thinks that a new investor should not try buying a house that has been red tagged by the city.

There are many people who come to The Norris Group expecting to receive a loan, because they have attended clubs and seminars in the state. Other people have told them that they can get a loan without a credit score, and without a down payment. This is not true. Craig has disappointing conversations with these people, but most of them are thankful, because Craig informs them on how they can get qualified for a future loan. Some of these people will put everything they have into a deal because they’ve been told that it is easy. This is a difficult and volatile time for real estate, yet people are willing to go “all in” on a property investment. People are coming from a 2006 mentality, where any property you got your hand on would get you a big check, but now things are much more difficult than that.

Craig can be reached at 951-780-5856. He will be glad to talk to you about borrowing money.

Bruce speaks with Craig Hill about the hard money loan business, how they met, how they work together, and what Craig brings to the table as a money partner. The Norris Group only loans in California so The Norris Group offers local insights and prides itself on a very good track record. Video on the program can also be seen at http://www.thenorrisgroup.com/hard_money_loans/ and more on trust deed investment in california can be found at http://www.thenorrisgroup.com/trust_deed_investments/

In 1984, Craig took his first job in the lending industry working for Vanguard Mortgage as a loan officer and loan manager. While employed there, he met and began funding REO purchases with Bruce Norris. When Bruce officially started the Norris Group in 1994, Craig came aboard as both loan officer and investment manager and never looked back. Since that time, they have arranged over $150 million dollars worth of investor loans.

See Craig’s full biography HERE.

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The Norris Group Real Estate News Roundup 11/20/09

Friday, November 20th, 2009

Today’s News Synopsis:

An amendment was passed which allows federal regulators to dismantle financial firms considered to be “too big to fail”.  According to PMI Group, new home sales decreased by 3.6 percent. The NAHB estimates that families earning the national median income can afford 70.1 percent of the new and existing homes sold in Q3 of 2009. First American CoreLogic reports that home prices declined by 9.8 percent in September from the previous year.

In The News:

NAR - “Commercial Real Estate Forecast Uncertain” (11-19-09)

“The first commercial mortgage bond deal in over a year shows the Federal Reserve’s efforts to sell securities through the TALF program can be fruitful, but the level of activity is well below what is required to resuscitate the commercial market. Credit availability needs to significantly rebound for any hope of a meaningful commercial recovery in 2010.”

DQNews - “California October Home Sales” (11-19-09)

“An estimated 41,280 new and resale houses and condos were sold statewide last month. That was up 2.6 percent from 40,216 in September, and down 2.4 percent from 42,293 for October 2008. California sales for the month of October have varied from a low of 25,832 in 2007 to a peak of 70,152 in 2003, the average is 44,451. MDA DataQuick’s statistics go back to 1988. ”

Mortgage Bankers Association – “Delinquencies Continue to Climb in Latest MBA National Delinquency Survey” (11-19-09)

“The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009, up 40 basis points from the second quarter of 2009, and up 265 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 108 basis points from 8.86 percent in the second quarter of 2009 to 9.94 percent this quarter.”

Inman - “Fannie: ‘Recovery is here’” (11-19-09)

“The deepest and longest recession since the Great Depression appears to be over, Fannie Mae economists say, projecting sales of new and existing homes will jump 11 percent next year and that national home prices will stabilize, remaining essentially flat.”

Housing Wire – “Freddie’s Weekly Mortgage Rates Near Record Lows” (11-19-09)

“Freddie Mac’s (FRE: 1.16 -1.69%) weekly survey of average interest rates put the 30-year fixed-rate mortgage (FRM) at 4.83% with an average 0.7 point for the week ending Nov. 12, down from the average rate of 4.91% the previous week. That’s a mere 5bps shy of Freddie Mac’s record low of 30-year FRM rates, reached twice in April this year. Last year, the rate was 6.04%.”

DQNews - “Bay Area median sale price tops year-ago level for first time since ‘07″ (11-19-09)

“The median price paid for all new and resale houses and condos that closed escrow rose to $390,000, up 6.8 percent from $365,000 in September and up 4 percent from $375,000 in October 2008. The last time the median sale price rose on a year-over-year basis was in November 2007, when it gained 1.5 percent, according to MDA DataQuick of San Diego.”

Bloomberg - “General Growth Makes $9 Billion Debt Restructure Deal” (11-19-09)

“General Growth Properties Inc. reached a deal with some of its largest lenders to restructure about $9 billion of mortgage debt through its Chapter 11 case.”

Bloomberg - “California Scales Back Bond Sale 45% Amid Prison Legal Issue” (11-19-09)

“California, the most indebted U.S. state, sold $743.3 million of tax-exempt bonds today, scaling back the offer by 45 percent because of legal issues raised yesterday about a project at San Quentin State Prison. ”

Bloomberg - “Bankruptcies Will Rise Next Year, Weil’s Miller Says” (11-19-09)

“U.S. companies will increasingly declare bankruptcy next year as high-yield debt matures, said Harvey Miller, the lawyer who handled the reorganizations of Lehman Brothers Holdings Inc. and General Motors Corp. Filings from commercial real estate firms will be part of that increase, said Miller, a lawyer with Weil Gotshal & Manges LLP, speaking today at a conference in New York. ”

Housing Wire - “Fed Buys Another $16Bn of Agency MBS” (11-20-09)

“The Federal Reserve Bank of New York bought another $16bn of agency mortgage-backed securities (MBS) in the week ending November 18.”

Housing Wire – “House Amendment Allows Dismantling of ‘Too Big to Fail’ Firms” (11-20-09)

“A House Financial Services Committee amendment that passed this week would empower federal regulators to dismantle financial firms considered ‘too big to fail.’ The amendment, authored by House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises chair Paul Kanjorski (D-PA), was included to the Financial Stability Improvement Act with a vote of 38-29.”

Housing Wire – “ABCP Outstandings Slip 35% in 2009″ (11-20-09)

“Total US asset-backed commercial paper (ABCP) outstandings were at $455bn as of November 4, a 35% decline from the beginning of 2009, according to market commentary by Fitch Ratings.”

Housing Wire – “PMI Group Sees Mixed Housing Activity in September” (11-20-09)

“The seasonally adjusted rate of new home sales decreased for the first time in six months, down 3.6% to 402,000. PMI Group said this decline was due in part to concerns the first-time homebuyer tax credit would expire.”

Housing Wire – “Combined Loan to Values Swell to 107% in July 2009: Equifax” (11-20-09)

“The average CLTV, a ratio used to determine the risk of default when more than one loan is used, for current Alt-A loans ballooned from 75% in July 2005 to 107% in July 2009, according to the study. Home price declines and an increase in the popularity and size of second liens caused the rise, analysts reported.”

Housing Wire – “House Affordability Dips in Q309: NAHB” (11-20-09)

“Families earning the national median income could afford 70.1% of the new and existing homes sold in Q309, according to the National Association of Home Builders (NAHB) and Wells Fargo (WFC: 27.87 -1.59%) Housing Opportunity Index (HOI).”

Housing Wire – “Prices Down 9.8% in September: First American” (11-20-09)

“National home prices declined 9.8% year-over-year in September, according to First American CoreLogic’s home price index (HPI). In August, the year-over-year decline was 11.1% and on a month-over-month basis prices declined 0.4%, ending a five-month run of consecutive monthly price increases.”

Bloomberg - “D.R. Horton Shares Plunge as Losses Exceed Estimates” (11-20-09)

“D.R. Horton Inc., the second-largest U.S. homebuilder, dropped the most in more than a year after reporting a fourth-quarter loss that exceeded analysts’ estimates and saying the housing outlook remains difficult. The shares fell 15 percent. The net loss for the three months ended Sept. 30 was $231.9 million, or 73 cents a share, the Fort Worth, Texas-based company said today in a statement. The average estimate of 8 analysts in a Bloomberg survey was for a loss of 24 cents.”

Bloomberg - “U.S. Commercial Property Sales to Drop to $49 Billion” (11-20-09)

“U.S. commercial real estate deals are likely to fall to $49 billion in 2009, the lowest in records going back to 2001, Real Capital Analytics Inc. said today.”

Inman - “Google makes yet another big move into real estate territory” (11-20-09)

“A couple weeks ago we noted the company’s move to include a real estate overlay on Google Maps, which put listings smack-dab in front of millions of Google users who likely had no idea the company has spent the last several years quietly aggregating this content. Now, today, search engine land reports that Google has taken this one step further to include a unique page for every listing that includes photos, a map (including Street View) property details, directions, transit information and more. It’s a listing detail page, basically.”

Looking Back:

One year ago, 7,613 houses and condos closed escrow in the Bay Area. Economists expected economic activity to drop by .6 to .8 percent. The Commerce Department reported that housing starts fell lower than any single month on record.

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The Norris Group Real Estate News Roundup 11/18/09

Wednesday, November 18th, 2009

Today’s News Synopsis:

The MBA’s weekly survey shows that mortgage application volume decreased 2.5 percent on a seasonally adjusted basis. According to the Commerce Department, housing starts fell 8.5 percent in the West. Jones Lang LaSalle Inc. and Grubb & Ellis Co. believe that U.S. office vacancies may reach 20 percent.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (11-18-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November 13, 2009.  The Market Composite Index, a measure of mortgage loan application volume decreased 2.5 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 3.3 percent compared with the previous week”

Los Angeles Times – “U.S. housing starts dive 10.6%; in the West, 8.5%” (11-18-09)

“Housing starts unexpectedly fell 10.6% to a seasonally adjusted 529,000 annual rate in October, compared with the prior month, the Commerce Department said today. That was a 30.7% drop from October 2008.”

Housing Wire – “Housing Starts Fall 10% As Single-Family Completions Rise” (11-18-09)

“The rate of housing starts declined 10.6% from September to October, but the rate of housing completions for single-family homes jumped 10.7%, according to a joint release by the Census Bureau and the Department of Housing and Urban Development (HUD).”

Housing Wire – “Genworth Provides Workouts on $2.3bn of Mortgages” (11-18-09)

“Mortgage insurer Genworth Financial (GNW: 11.75 +1.38%) kept $2.3bn worth of mortgages from foreclosure from October 2008 through September 2009, according its quarterly foreclosure prevention report. Genworth worked out 17,810 loans during that time frame — 15% of the 115,000 delinquent loans in its portfolio as of Q309, a Genworth spokesperson told HousingWire.”

Bloomberg - “U.S. Office Vacancies May Approach 20% Next Year” (11-18-09)

“Office landlords in the U.S. will confront vacancy rates approaching 20 percent next year as employers hold off hiring, commercial property brokers Jones Lang LaSalle Inc. and Grubb & Ellis Co. said today.”

Bloomberg - “FHA-Backed Lending Is a ‘Train Wreck,’ Toll Says” (11-18-09)

“The Federal Housing Administration, the agency that insures home purchases made with down payments as small as 3.5 percent, may create another lending crisis, Toll Brothers Inc. Chief Executive Officer Robert Toll said.”

Inman - “HouseLogic is the real deal?” (11-18-09)

“HouseLogic is filled with tips and tricks, advice on various aspects of home maintenance and home improvement, as well as news about real estate and homeownership. Much of the content appears to be syndicated from existing publications via YellowBrix, but there are articles from various freelance writers, newspaper reprints and other content sources.”

Inman - “Appraisal rules draw more fire” (11-18-09)

“The Home Valuation Code of Conduct was intended to protect appraisers from coercion by lenders, and supporters say it’s been effective in that regard. But critics say the code has also led lenders to transfer much of their valuation work away from independent appraisers, and over to appraisal management companies, or AMCs.”

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The Norris Group Real Estate News Roundup 11/17/09

Tuesday, November 17th, 2009

Today’s News Synopsis:

Home sales increased by 2.8 percent from September to October in six Southern California counties. The MBA reports that 6.7 million households with mortgages are behind on their payments, or are in the foreclosure process. TransUnion conducted a study of 27 million credit files and found that 6.25 percent are delinquent.

In The News:

Office of Thrift Supervision - “Federal Regulators Issue Final Model Privacy Notice Form” (11-17-09)

“Eight federal regulatory agencies today released a final model privacy notice form that will make it easier for consumers to understand how financial institutions collect and share information about consumers. Under the Gramm-Leach-Bliley Act (GLB Act), institutions must notify consumers of their information-sharing practices and inform consumers of their right to opt out of certain sharing practices. The model form issued today can be used by financial institutions to comply with these requirements.”

DQNews - “Southland home sales up again, drop in median price smallest in 2 years” (11-17-09)

“Last month 22,132 new and resale houses and condos closed escrow in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 2.8 percent from 21,539 in September and also up 2.8 percent from 21,532 a year earlier, according to MDA DataQuick of San Diego.”

Wall Street Journal – “Ten Questions on the Volatile Housing Market” (11-17-09)

“But more than 6.7 million U.S. households with mortgages, or about 13%, are behind on their payments or are in the foreclosure process, according to the Mortgage Bankers Association. Eventually, many of them will lose those homes, sending more supply onto the market. Unemployment has continued to rise, and the housing market is unlikely to show a sustained recovery until job growth resumes.”

Housing Wire – “TransUnion Sees Delinquency Rise for 11 Quarters” (11-17-09)

“Overall mortgage delinquency of 60 or more days reached a record 6.25% in TransUnion’s ongoing study of a random selection of 27m credit files from its national consumer database. The rate is up from 5.81% in Q209 and is expected by the credit bureau to come in just under 7% by year-end 2009.”

Housing Wire – “Home Improvement Stores See Sales Declines” (11-17-09)

“Earnings were down in Q309 at the country’s two largest home improvement chains, The Home Depot (HD: 26.99 -2.39%) and Lowe’s (LOW: 21.48 -1.20%) as homeowners and renters alike show reluctance to begin improvement projects amid continued financial stress and increasing joblessness.”

Housing Wire – “CIT Posts 10th Straight Quarterly Loss” (11-17-09)

“CIT Group, a lender to small- and mid-sized businesses, posted a Q309 loss of $1.03bn, or $2.47 per share, as the company attempts to emerge from bankruptcy protection by the end of the year.”

Bloomberg - “Insurers Face $23 Billion Loss on Commercial Property” (11-17-09)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., may lose as much as $22.6 billion on investments in commercial real estate through 2011, Fitch Ratings said.”

Bloomberg - “FDIC Sells Most Real Estate Since 1994 on U.S. Banking Debacle” (11-17-09)

“The FDIC raised $727 million from building and land sales in the first nine months of 2009 compared with $1.16 billion in the whole of 1994, according to FDIC data. The Washington-based agency sold 1,706 properties, according to its Web site, the highest number since 2,045 in 1996.”

Bloomberg - “Homebuilder Confidence in U.S. Lower Than Forecast” (11-17-09)

“The National Association of Home Builders/Wells Fargo index of builder confidence held at 17 for a second month, the Washington-based association said today. A reading below 50 means most respondents view conditions as poor. The median forecast of economists in a Bloomberg News survey was for a reading of 19.”

NAHB - “2009-2010 Home Buyer Federal Tax Credit Fact Sheet” (11-17-09)

“Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for a tax credit of 10% of the home purchase price, up to a maximum of $6,500.”

Looking Back:

One year ago, the NAHB claimed that 56.1 percent of all new and existing homes that were sold were affordable to families who earned the national median income of $61,500 per year. Citigroup announced its plans to cut over 50,000 jobs. The FDIC hinted at a possible revisation of the $1.4 trillion debt-insurance program.

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The Norris Group Real Estate News Roundup 11/16/09

Tuesday, November 17th, 2009

Today’s News Synopsis:

 The Worker, Homeownership and Business Assistance Act will provide approximately 33 billion dollars in tax cuts to real estate corporations. Statistics from Altera Real Estate show that the most difficult Orange County market to find a new home in is Ladera Ranch. Foreclosure Radar reports that investors bought 337 homes and condos at foreclosure auctions in October.

In The News:

New York Times – “Home Builders (You Heard That Right) Get a Gift” (11-14-09)

“tucked inside the law was another prize: a tax break that lets big companies offset losses incurred in 2008 and 2009 against profits booked as far back as 2004. The tax cuts will generate corporate refunds or relief worth about $33 billion, according to an administration estimate.”

Bloomberg – “Developers Diversified Sells Commercial Mortgage-Backed Debt” (11-16-09)

“Developers Diversified Realty Corp. sold $400 million of debt backed by shopping centers in the first sale of commercial-mortgage bonds through a U.S. program to jumpstart lending.”

Bloomberg – “Lowe’s Profit Meets Estimates; Forecast Is Trimmed” (11-16-09)

“Lowe’s Cos., the second-largest U.S. home-improvement retailer, posted third-quarter profit that met analysts’ estimates and trimmed the high end of its full-year forecast as consumers refrained from spending on large projects.”

Reuters – “Investors strategize for Fed’s exit from MBS market” (11-16-09)

“Investors who reaped robust gains in U.S. mortgage-backed securities by piggy-backing on the Federal Reserve’s $1.25 trillion buying program are bracing for the end to the central bank’s support — and positioning themselves for a new round of profits as prices cheapen.”

Orange County Register – “Ladera Ranch homes hardest to buy” (11-16-09)

“The ‘hardest’ O.C. town to find a home to buy in terms of ‘market time’ (supply of homes for sale vs. new purchase deals inked in past month) is Ladera Ranch at 1.1 months to theoretically sell all for-sale homes at the current buying pace. Average listing price? $1.1 million.”

Orange County Register – “More foreclosures and short sales hit the market” (11-16-09)

“There are currently only 339 foreclosures in all of Orange County (as actively listed for sale), an increase of 25 in the past two weeks. Foreclosures only represent 4% of the active listing market.”

Orange County Register – “Investors up bets on foreclosures” (11-14-09)

“ForeclosureRadar.com reports investors bought 337 houses and condos at foreclosure auctions, known as trustee’s sales, in Orange County last month, up 21% from September and 157% from a year earlier.”

Inman – “Skeptics of RPR database voice worries” (11-16-09)

“The database is expected to eventually include records on every parcel in the U.S., residential and commercial, combining public property records with data from multiple listing services and commercial information exchanges CIEs. Some MLS executives attending the conference say they want additional assurances that it won’t compete with services they offer. In addition, some NAR members — particularly appraisers — aren’t happy that the project’s business model relies on selling automated valuations to lenders and government agencies.”

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