Today’s News Synopsis:

Southern California saw a 3.6% increase in home prices, an increase not seen in 16 months.  This comes with the decrease in distressed properties to their lowest level in four years.  The Mortgage Bankers Association reported a 9.2% increase in mortgage applications.  Star Wars creator George Lucas proposed a plan to build low-income housing on his ranch after having been denied to build a digital production studio there.

In The News:

Housing Wire – “Home affordability in California reaches 24-year high” (5-16-12)

“Home affordability in California reached a 24-year high in the first quarter of 2012, with 56% of homebuyers able to afford a median-priced, existing single-family home in the state, the California Association of Realtors said. That is up from a home affordability rate of 55% in the fourth-quarter of last year and 53% in the first quarter of 2011.”

Mortgage Bankers Association – “Q1 2012 Commercial/Multifamily Mortgage Originations Up 36 Percent from Q1 2011″ (5-16-12)

“First quarter 2012 commercial and multifamily mortgage loan originations were 36 percent higher than during the same period last year and 12 percent lower than the fourth quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.”

DS News – “Housing Permits Drop, Starts Increase; Permits Hit 15-Month Low” (5-16-12)

“Housing permits dipped in April for the first time in four months, the Census Bureau and Department of Housing and Urban Development reported jointly Wednesday, but housing starts improved. Both indicators remained far above year-earlier levels.”

Bloomberg – “Housing Starts Join U.S. Factories Topping Forecasts” (5-16-12)

“Housing starts and industrial production exceeded forecasts in April, pointing to strength in the U.S. economy at the start of the second quarter.”

Housing Wire – “Mortgage applications rise 9.2% on refinancing activity” (5-16-12)

“Mortgage applications increased 9.2% for the week ending May 11 as more investors fearing Europe’s debt crisis fled to U.S. Treasury securities, an industry trade group said Wednesday.”

Bloomberg – “Southern California Home Prices Rise as Distress Declines” (5-16-12)

“Home prices in Southern California climbed last month from a year earlier for the first time in 16 months as sales of distressed properties, which usually sell at a discount, dropped to the lowest level in four years.”

Housing Wire – “George Lucas proposes affordable housing plan” (5-16-12)

“The film emperor may be striking back. For 25 years, filmmaker George Lucas tried to persuade his Marin County, Calif., neighbors to let him build a digital production studio on his ranch there, but the area’s residents thwarted the plan.  So Lucas has come up with an alternative for his Grady Ranch property: To build low-income housing on it”

DS News – “Average U.S. Households Almost Out of Financial Distress” (5-16-12)

“The Consumer Distress Index, published by CredAbility, found that the average U.S. household is under less financial stress these days, most likely due to factors such as added jobs and the mild winter weather this year.”

Mortgage Bankers Association – “Delinquencies Decline in Latest MBA Mortgage Delinquency Survey” (5-16-12)

“The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 7.40 percent of all loans outstanding as of the end of the first quarter of 2012, a decrease of 18 basis points from the fourth quarter of 2011, and a decrease of 92 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.”

Hard Money Loan Closed

West Covina, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $245,000 on a 5 bedroom, 2 bathroom home appraised for $383,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Apartment Owners Association Million Dollar Trade Show on Saturday, May 17, 2012.

The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.

Looking Back:

MDA DataQuick reported 6,789 houses and condos sold in the Bay Area during April 2011. TransUnion claimed the national mortgage delinquency rate fell to 6.19% in the first quarter of 2011. The United States was expected to reach the $14.29 trillion debt limit Monday. National mortgage debt decreased by nearly $400 billion from 2007 to 2010, according to Frank Nothaft of Freddie Mac.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Today’s News Synopsis:

According to NAHB, builder confidence increased this month by five points to a level of 29.  However, at the same time the amount of homes remodeled decreased in March 1%, although they are still at high levels.  The number of listed homes on sale decreased 21% from last year.

In The News:

NAHB – “Builder Confidence Rises Five Points in May” (5-15-12)

“Builder confidence in the market for newly built, single-family homes gained five points in May from a downwardly revised reading in the previous month to reach a level of 29 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. This is the index’s strongest reading since May of 2007.”

DS News – “Pro Teck Valuation: Home Listings Drop 21 Percent Nationwide” (5-15-12)

“Nationwide, the number of homes listed for sale has fallen 21 percent from a year ago, according to Pro Teck Valuation Services’ May Home Value Forecast.”

Housing Wire – “Home remodeling falls for March: BuildFax” (5-15-12)

“Residential remodeling projects dipped in March but remained at elevated levels, according to BuildFax.  The seasonally adjusted, annual index measured by building permits fell 1% from a month earlier to 2.78 million. February’s total was adjusted downward as well to 2.81 million from an initially reported 2.89 million.”

Bloomberg – “Ally Pays $750 Million in ResCap Bankruptcy to ‘Avoid the Noise’” (5-15-12)

“Ally Financial Inc. (ALLY) contributed $750 million to cover legal claims on soured loans tied to its bankrupt mortgage unit, even though the firm calls them meritless, “to avoid the noise,” according to its leader.”

CNN Money – “Inflation, retail sales flat in April” (5-15-12)

“American consumers got the same bang for their buck in April as they did a month earlier, as falling gas prices gave them some relief.”

Realty Trac – “Will Short Sales Finally Save the Housing Market?” (5-15-12)

“Short sales, where a distressed property (often in foreclosure) is sold for less than what is owed on the mortgage, have long been viewed as an elegant solution to the nation’s foreclosure problem — at least in theory.”

Housing Wire – “Consumer credit defaults stay on post-recession lows” (5-15-12)

“Consumer credit defaults continued to decline in April, marking fresh post-recession lows.  The composite Standard & Poor’s/Experian index dropped to 1.86%, it’s lowest level since July 2007, from 1.96% in March. It’s the fourth monthly decline in a row after defaults ticked up at the end of last year.”

DS News – “Barclays Advocates Short Sales to Lower Loss Severities” (5-15-12)

“With vacant homes stretching the capacity of banks’ balance sheets and homebuyer demand lackluster at best, short sales are becoming a top loss mitigation choice for private lenders and investors, particularly in especially hard-hit markets.”

Housing Wire – “FHFA revamps strategic plan to incorporate goals for GSEs” (5-15-12)

“The Federal Housing Finance Agency revamped its own strategic plan for 2013-2017 to incorporate some of the ambitious goals set out for the government-sponsored enterprises.”

Hard Money Loan Closed

Riverside, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $92,000 on a 3 bedroom, 2 bathroom home appraised for $153,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Apartment Owners Association Million Dollar Trade Show on Saturday, May 17, 2012.

The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

In a big news story, Ally Financial’s mortgage unit ResCap filed for bankruptcy.  With this bankruptcy, Ally Financial will focus their efforts on paying off their debt to the Treasury from a $17.2 billion bailout.  Due to the increase in foreclosures, serious delinquencies increased .5% last December for the first time since showing signs of decreases between December 2009 and June 2011.

In The News:

Housing Wire – “Robo-signing fractures REO inventory at GSEs” (5-14-12)

“Fannie Mae and Freddie Mac are managing bifurcated REO inventories because of the robo-signing effect on different areas of the country.”

DS News – “Shadow Inventory: 46 Months to Clear Distressed Housing Supply” (5-14-12)

“It will take 46 months to clear the market’s supply of distressed homes, or the shadow inventory, according to estimates from Standard & Poor’s Rating Services based on first-quarter 2012 data.”

Realty Times – “Real Estate Outlook: Median Existing Home Prices Balance” (5-14-12)

“The latest quarterly report from the National Association of Realtors (NAR) shows that median existing single-family home prices are indicating more balanced conditions.”

DS News – “Higher Foreclosure Rates Bump Up Serious Delinquencies” (5-14-12)

“According to a report from Foreclosure-Response.org, the serious delinquency rate, which includes loans 90 or more days past due plus foreclosures, increased for the first time after a downward trend between December 2009 and June 2011″

CNN Money – “JPMorgan trading flap stirs Congress” (5-14-12)

“Congress is beginning to weigh in on the news that JPMorgan Chase lost $2 billion on complex trades intended to hedge against economic risk, and that the losses could mount.”

Bloomberg – “Ally to Sell Non-U.S. Units as ResCap Goes Bankrupt” (5-14-12)

“Ally Financial Inc. (ALLY), the auto lender whose mortgage unit went bankrupt, may sell international car- finance and insurance operations to help repay a $17.2 billion U.S. bailout, Chief Executive Officer Michael Carpenter said.”

Housing Wire – “Federal Reserve, OCC and FDIC finalize stress test guidance” (5-14-12)

“The Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp. on Monday issued final supervisory guidance regarding stress-testing practices at banking organizations with total assets of more than $10 billion.”

DS News – “NAR Reports Members’ Income Rose for First Time Since 2002″ (5-14-12)

“For the first time since 2002, the National Association of Realtors (NAR) reported that income for its members (REALTORS®) increased in 2011.”

Inman – “New Freddie Mac CEO takes pay cut” (5-14-12)

“Freddie Mac’s new chief executive officer, former JPMorgan Chase & Co. executive Donald H. Layton, will make just a fraction of what his predecessor did.”

Housing Wire – “Foreclosure sales fall in Detroit” (5-14-12)

“A drop-off in April foreclosure sales in the Detroit market reflected better on conditions in the suburbs than in the inner city.”

DS News – “FinCEN: Mortgage Loan Fraud Sees Yearly Increase Since 1996″ (5-14-12)

“Out of seven different categories of fraud reported by depository institutions (banks, thrifts, credit unions), mortgage loan fraud (MLF) saw the second great increase from 2010 to 2011 and had the highest number of suspicious activity report (SAR) filings, according to a report from the Financial Crimes Enforcement Network (FinCEN).”

Hard Money Loan Closed

Victorville, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $36,000 on a 3 bedroom, 2 bathroom home appraised for $62,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Apartment Owners Association Million Dollar Trade Show on Saturday, May 17, 2012.

The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Sources:
HOPE NOW: Loan mods down 31% in Q1 2012
HAMP Activity Slides, HAFA Holds Steady
Shrinking inventory boosts home prices
Home Prices Rise in Half of U.S. Cities as Markets Stabilize
Fannie Mae profits, avoids Treasury bailout in 1Q
Feds may seek fines against Wells Fargo in mortgage bias probe
FHFA wrapping up REO-to-rental program bidder reviews
Deutsche Bank settles FHA suit for $202.3 million
Stockton couple pleads guilty to stripping foreclosure of fixtures

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big news of the week.  Even though market conditions improved in the first quarter for commercial real estate, investors are still concerned about consumers not being interested in sub-A assets and overall how some commercial mortgages will mature in the future.  Consumer sentiment is at its highest since the economy first went into recession, showing positive signs for the economy.

In The News:

DS News – “NAR Finds Income to Qualify for Mortgage Well-Below U.S. Median” (5-11-12)

“Interest rates continue to slide further down alongside the decline in home prices. In addition to these factors improving affordability for homeowners, the National Association of Realtors (NAR) found the amount of income needed to qualify for a mortgage is actually well below the median income in most parts of the U.S.”

Housing Wire – “Consumer sentiment marks post-recession high” (5-11-12)

“A preliminary reading of May consumer sentiment hit its highest level since the recession, suggesting a more positive public outlook of the U.S. economy.”

NAHB – “New Website Helps Home Owners, Buyers Protect the American Dream” (5-11-12)

“ Despite the fact that Americans overwhelmingly support homeownership, legislative and regulatory proposals now under consideration would greatly harm home owners, home buyers, the housing market and the nation’s economy.”

Realty Times – “Second Consecutive Week Of Record-Low Fixed Mortgage Rates” (5-11-12)

“In Freddie Mac’s results of its Primary Mortgage Market Survey, the average fixed mortgage rates hit a new all-time record low for the second consecutive week as they followed bond yields lower.“

CNN Money – “JPMorgan suffers big loss“ (5-11-12)

“JPMorgan Chase, in a surprise announcement, said Thursday that it has suffered trading losses of $2 billion since the start of April. The group that suffered the losses is part of the bank’s so-called corporate unit, and had been making trades designed to hedge against risk.”

Housing Wire – “Conditions improve in commercial real estate, but confidence is fleeting” (5-11-12)

Wall Street Journal- “Pointed Spat Over World Trade Spire “ (5-11-12)

“As construction of One World Trade Center in Lower Manhattan moves toward completion, the building’s owners are sparring with their architects over what goes on top of the 104-story tower—a dispute that could stop the structure being recognized as America’s tallest.”

San Francisco Chronicle – “Twitter deal helps fuel office rental boom in SF” (5-11-12)

“Frank Fudem, a San Francisco broker for office tenants, realized that commercial rents were about to spike when Twitter Inc. decided to move to a gritty neighborhood, and leasing by technology companies started to accelerate.

Housing Wire – “Shadow banking emerging from the shadows” (5-11-12)

“Investors interested in money market funds, government-sponsored enterprises and asset securitizations are seeing signs of shadow banking emerging from the shadows, but more work has to be done to create transparency and oversight of the segment, Standard & Poor’s said in a new report.

DS News – “Three Refinancing Bills Propose Cutting Red Tape to Expand Eligibility” (5-11-12)

“At a time when mortgage rates have hit record-low numbers, HUD Secretary Shaun Donovan stressed urgency in passing housing refinance bills on President Barack Obama’s “to-do” list for Congress.

Hard Money Loan Closed

Compton, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $125,000 on a 4 bedroom, 2 bathroom home appraised for $238,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Apartment Owners Association Million Dollar Trade Show on Saturday, May 17, 2012.

The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.

Looking Back:

A study from Redfin showed that REOs and short sales sold for closer to their listed value than non-distressed homes. 44% of Americans claimed their housing expenses were significantly higher from the previous. According to Fannie Mae, the housing finance system was going to be a $1 trillion market in 2011, down from $1.5 trillion in 2010. Irvine Co. planned to build 1,677 more apartments in Orange County.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Philip Tirone

The Mortgage Equity Group, Inc. and www.7Stepsto720.com

(Full Bio)

This week Bruce Norris is joined once again by Philip Tyrone. Philip has been an entrepreneur from the start, buying and selling gold and silver in elementary school. He later established a car audio resale business in high school. As a mortgage broker he created 720creditscore.com to help his clients increase their credit scores and improve their financial situation. Originally a book and a workbook, the product expanded to become an infomercial, a teleseminar, and an online wealth enhancement course.

Bruce had mentioned off-air that he pulled his credit score, and he said it was something that he has not seen in a long time. For Bruce, it has been a while since he has borrowed money; so when he was looking at it he was surprised to see one of the comments. Someone said, “One of the negative things that you have is you don’t have much credit.” He has 40 years of perfect payment history; but now that he does necessarily have need for credit, this is the negative and seems backward. Philip said one of the questions he gets all the time is how to improve their credit after they have read the first page. He said fundamentally it makes no sense because you can get someone with an 800 credit score who is still told they don’t have enough credit or their credit is too extended. What they are trying to do is say if there is something for us to tell you, here is what we would tell you. However, over and over these are wrong. Fundamentally, it does not give the proper picture.

For example, when someone has a lot of late payments or short sales, many times they get the response that says “Two New Late Payments.” The person would then be asking what to do with this since they know they had been late before in the past. On Bruce’s, it said he had a public record. He looked at it, and it was a supplemental tax bill, which is the kind of bill you receive after the fact. Nine years ago, he sold a house. The tax bill was mailed to that address, and he never received it. It turned into a lien, which he paid. Despite this all happening nine years ago, it is still on his credit report nine years later. This is actually a perfect example of errors. One of the key things that Philip points out in his program is the difference between high-priority errors and low-priority errors. According to a public interest research group, 80% of American’s have an error on their credit report. The reality with Bruce’s credit score is he has a low priority error on his because something nine years old should have very little impact on his credit score. To resolve a situation like this he would have to write a letter to one of the bureaus and show them that it is over seven years old, and they will drop it. It’s amazing how the computer cannot figure this out on its own.

This is why Philip points out high-priority and low-priority errors. Philip’s philosophy and what he teaches in the webinar that there are certain things you should never worry about. You are never going to have a perfect credit report, and it does not really make sense to spend 10-30 hours cleaning up errors. It won’t have any impact on your life or credit score. Philip said as long as he gets to the credit score the other person wants and they become bankable, that is all that matters. Whether or not the number is still 720 depends on the banks. Certain banks or other things such as car loans require 750 at the most, so there are a lot of different factors. It is not always like it was in the past where it has to be just a credit score. They look at what you have done with your credit, which is why if you have a short sale foreclosure or a bankruptcy. The first thing you want to do is re-establish your credit after the bankruptcy. Philip can take someone who had a bankruptcy, short sale, or foreclosure, and you can go from whatever the credit score is now to 720 in about 8 months depending on how quickly you open the program and where your credit is at this point. Philip has had 12,000 people go through the program, so he can really see what works and doesn’t work and update it. This is why he knows what works and doesn’t work. Just because you have had a bankruptcy, foreclosure, or short sale does not mean your credit is going to pay for 7-10 years.

Bruce was asked to be part of a Riverside foreclosure task force with the city. In their first meeting, one of the things he asked was how they force the lenders to accept, cram down, or reduce principle. Bruce said one of the favors that could be done for the citizenry is to tell them there is life after a foreclosure. Ultimately, the lender should have the right to say they are not getting paid, had signed up for being able to chase the asset, and this is what they will most likely ultimately do. If you could tell the people on the other end that there is a path back and they will own the home again. Some people have blown this up to say this is it, and if they lose this house it is over. Part of that misinformation comes from realtors. They do not know either. When Bruce speaks in front of a group of realtors about foreclosures and how long it takes before somebody can get a loan, he usually tells them 7 years is very common.

Philip said it feels so good to give hope to people, which is one of the reasons why Philip does what he does. When he is on his question and answer sessions with his students, is addressing specific questions, he sometimes hears someone ask him if he is sure about what he is saying. His program is not about getting a bankruptcy or foreclosure off of someone’s credit report. Instead, he is saying we are going to have good credit coexist with your past as it is, and you are still going to end up with the FICO score you need. We are seeing the recovery of credit scores happen faster than they did in the past. Philip does not know what the credit bureaus are doing or if they are doing anything. All he knows is he is seeing a quicker jump in a person’s credit score than he has ever seen before. It is so exciting, and so many of the people have a full credit score. The bureaus are looking at this and saying the average credit score has gone down so much. When you re-establish and do the right thing, you get a bigger kick.

One of the things Bruce said drives him crazy is he walked into BofA and happened to look at their mortgage rate for 30 years, and it was about 3 ¾, a number that he just never thought he would see. He happened to ask what their rate was for non-owner occupant loans. Looking at what Bruce had with him, they told him they could do four loans with him. He told them there were programs that let you do ten, and she said their bank had what was called an overlay, which they cannot do. An overlay is a bank preference that sometimes trumps what Fannie, Freddie, or FHA will do. Bruce thinks one of the most detrimental things in the housing market right now is unnecessary overlays. Bruce interviewed FHA on the radio show for the whole purpose of asking them how long after a bk or a foreclosure would they consider doing a loan. Their answer was six months. If you could have a FICO score improve and FHA is willing to loan to this person with the improved score, the problem is there may not be a lender out there who will do it. When you are going into owner financing or things like this, when you are dealing with an owner, then people will look at you and say, “Wow, this guy had a foreclosure, but he already had a 750 credit score!” This is significant.

The thing mentioned above is not really common, so we are not talking about someone, for example, who will sit down with Bruce and tell him they have a 720 FICO score but lost a house 8 months ago. He would think this was strange. However, Philip is able to accomplish this legitimately. When a person he is working with is sitting in front of a lender with a 720 FICO score and a foreclosure or bankruptcy 8 months prior, Bruce wondered which fact is looked at when these two worlds collide. Do they look at the FICO score and say in this instance this is going to trump the recent problem? Philip said from what he has heard with his clients, if you are going to traditional lenders, such as Bank of America or Fannie Mae lenders, the credit score does not trump the bankers. They will say, “Sorry, you cannot lend for 2-3 years.” It depends on what their lending rules are, which are always subject to change. You never know what these guidelines are. They may pass a law that says they are loosening the guidelines to stimulate the real estate market, but who knows.

However, when you are dealing with small credit unions and small regional banks, they make decisions based on their loan committee. Then, when you are dealing with owner financing, this is the easiest hurdle to jump. You can simply say you have had a bad experience, were hurt in the market, but you can show what you have done. What is interesting is there is a two-tiered system. One, if you have a 720 FICO score, all is well. On the other hand, sometimes if you have one it is actually not a good thing. It is really interesting how this can exist simultaneously, but now Bruce said nothing really surprises him. When he returned from Washington D.C., where he had the privilege of sitting in front of Fannie and Freddie, he was comforted to know that there would always be a need for private money because of the way the decision process works.

Most people start pretty innocently trying to figure out that they have a problem, are upside down, and are going to call their lender and see what to do. Then, somebody inside says they are not going to talk to them until they stop making their payments. This causes them to comply. When asked if this was a bad idea, Philip said the thing he has learned over the past 3-4 years is to not speak about the morality of your credit score. He has seen unbelievable people who have had bad credit for numerous reasons. What Philip teaches is how to recover from a poor credit score. He looks at the credit score as just a tool.

Philip said two years ago he had a loan with a regional bank, and he was in the mortgage business, which had gone down 90%, and he had never missed a payment. He was sent loan documents and told they needed to be resigned. He looked at the loan documents and saw a $495 processing fee. This was just his yearly renewal; there was nothing else about it. He had asked numerous times if they could give him a break since he was in the mortgage business, to which they replied that they could not do anything. He felt like he was being taken advantage of. He was one of the lenders who kept paying. He had numerous friends and people who owned mortgage companies who did their own thing and went their own way. He was so frustrated, and in the heat of the moment he said he was done and they were being unreasonable. He had asked for a break in payment and for a break in interest rates, and they kept saying no and sent him a $495 processing fee. He ended up being sued, and it was an ugly situation. They kept telling him he can’t miss his payments since he teaches on credit scoring, to which he replied that he teaches on how to raise a credit score and not on the morality of making a decision that does not fit. What ended up happening was they negotiated it out, and six months later he paid $.25 on the dollar. There was no logic since what he had told them six months prior was he would pay and did not want to walk away from the loan, but he wanted them to be reasonable with him and give him a break while he was getting on his feet. None of this happened, and he then ended up paying $.25 on the dollar and the recorder covered the fee.

Philip said this was where the shift really happened and when he began looking at credit score as a tool that you use. He does not say this because he does not think you should pay your bills. What he is trying to describe is there are certain situations that you are in where times change and you have to make a decision. When someone walks away from a home or the bank tells you to stop paying your mortgage, you have to make the decision that is right for the family in that moment. The decision he made was one he felt was right and worked out for his family, but sometimes the decision can turn into a foreclosure or other scenario. Bruce said there may sometimes be people behind the scenes giving advice who may not understand that there are ramifications outside of an attempt to put pressure on the lender.

One of the things that has been a good change is that you have lenders now seemingly willing to do short sales without you having to be late, which makes a lot more sense. They figured out a long time ago that if the lender is doing it, then it is in their best interest. They finally figured out doing a short sale was in their best interest. Bruce wondered if, credit-damage wise, there is an easier path back from a short sale than a foreclosure. Philip said the bottom line is how many times you were late before the short sale or foreclosure. For example, if you did a short sale and were late, but no one noticed the default was filed, then it is going to be easier to recover. If you had those defaults filed after a foreclosure, there are just more negative marks backed up against you. Either way, it does not matter. It does not matter if you have a 500 credit score, 4 short sales, 4 foreclosures, and a bankruptcy yesterday, you can recover.

The good news is Philip does not care how bad your situation is, it is really not that bad. As messed up as the credit system is, the good part is it looks at new credit much better and with much more weight. The weight on new credit is so much stronger than old credit. Even what is bad can be recovered; it is not as bad as it seems. The best thing to do is get two or three positives to show up on your credit as soon as possible. This means instantly, right after the event happens. It is important to reestablish credit from the beginning as if you have no credit. This is what Philip and his company does. They have a webinar absolutely free, and they give them numerous times during the week. If you go to 720creditscore.com, there is going to be a box that pops up with a free download. You sign up for the download, and it will invite you to the webinar. You can pick the time you want, and it is going to give you so much information. His webinars are really designed to educate you, and you can either do one of two things. You can take the information and deal with it yourself, which is fine. This means spreading the word, or you can enroll in a program, where they will handhold you the entire time.

Bruce said he remembers seeing on his website something called Operation Hope. This was a conference Philip was invited to go to and is a low-income financial literacy program. They had their event in Washington D.C, and now he is trying to spread the word about it because the sad thing is people who are tight financially are the ones who really get taken advantage of by the private credit scores. If someone who is making hundreds of thousands of dollars a year is overpaying $200-$300 a month, then it is no big deal. If you are making $25, $30, or $40,000 and over overpaying $200 a month, this scenario happens all the time. Philip’s average client is overpaying $302 a month on average. Therefore, this leads to $3600 a year in things that are very unnecessary, and it is because they are not playing the game according to the rules. What is interesting is that you don’t really have to like the rules; but you better know them because some of the rules don’t make sense, but this is immaterial. If someone does not have the right number of credit cards or the right balance on those credit cards, his FICO score is going to be affected. Whether you like it or not, you are being judged by a set of criteria, so you might as well figure out what the criteria is.

One of the things that surprised Bruce when he and Marsha had a discussion back in 2004/2005 was they had paid off everything they had, and his FICO score went down. He did not think this would happen. Logically, there is no logic. Some of the things that matter, Bruce does not see why they mater; while other things that he would think matter, such as assets or income, don’t matter at all. Logic makes no sense. You would think that someone who has $10 million in the bank would naturally have a higher credit score. However, this is not how it works at all. If nothing else as a lender, you think that at least there is a cushion to fall back on.

If you would like to check out Philip Tirone’s website, go to 720creditscore.com. Here you will find a free webinar you can sign up for. Sign up for the free report on the website, and it will take you to the registration page.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Mortgage rates are at their lowest on record for the second week in a row at 3.8% for 30-year loans.  Builder confidence increased in the first quarter according to the NAHB.  Jobless claims decreased by 1,000 to 367,000 for the week ended May 5.  The lawsuit between the FHA and Deutsche Bank was finally settled over $200 million.

In The News:

Housing Wire – “Mortgage rates hit all-time lows for second straight week” (5-10-12)

“Fixed mortgage rates hit new all-time lows for the second straight week, following declining long-term Treasury bond yields.  The Freddie Mac survey showed the 30-year, FRM averaged 3.83% for the week ending Thursday — the lowest rate ever recorded — inching down from the prior week’s record average of 3.84%. Last year at this time, the 30-year FRM averaged 4.63%.”

DS News – “Initial Unemployment Claims Dip” (5-10-12)

“First time claims for unemployment insurance resumed their steady decline, dipping 1,000 to 367,000 for the week ended May 5, the Labor Department reported Thursday after the previous week’s total was revised upward by 3,000 to 368,000.”

NAHB – “Builder Confidence in the 55+ Housing Market Shows Significant Improvement in the First Quarter” (5-10-12)

“Builder confidence in the 55+ housing market for single-family homes had a significant increase in the first quarter of 2012 compared to the same period a year ago, according to the latest National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI) released today.”

Housing Wire – “AG robo-signing settlement monitor puts complaint forms online” (5-10-12)

“Borrowers will get a chance to file complaints electronically with the monitor of the $25 billion foreclosure settlement with the largest mortgage servicers.”

Los Angeles Times – “Bernanke: Banks are stronger, but mortgage lending is sluggish” (5-10-12)

“American banks have made significant strides in boosting their financial health since the recession, but the same cannot be said of their lending activity, especially for home mortgages, Federal Reserve Chairman Ben S. Bernanke said.”

DS News – “LPS: Home Prices Increased, but We’ve Been Down This Road Before” (5-10-12)

“For the first time since March 2010, data from Lender Processing Services (LPS) showed an increase in home prices, but still, the analytics company warned to embrace the positive news with some caution.”

Bloomberg – “Rise in Residential Investment May Help Home Depot-Lowe’s” (5-10-12)

“Spending on construction of new residential housing and improvements to existing homes is at a three-year high, a trend that may boost sales at Home Depot Inc. (HD) and Lowe’s Cos. (LOW).”

DS News – “HAMP Changes Can Expand Eligibility to More Military Members” (5-10-12)

“Starting June 1, military homeowners who are permanently displaced by a job-related move may still be able to be considered owner-occupants when applying for the Home Affordable Modification Program (HAMP).”

Housing Wire – “Deutsche Bank settles FHA suit for $202.3 million” (5-10-12)

“Deutsche Bank ($40.53 1.13%) settled a lawsuit filed against it by the U.S. government for $202.3 million that alleged a Deutsche subsidiary failed to meet Federal Housing Administration underwriting guidelines.”

CNN Money – “U.S. records first monthly budget surplus since 2008″ (5-10-12)

“For the first time in more than three years, Washington took in more money than it paid out last month.  The Treasury Department on Thursday recorded a $59 billion surplus. Tax receipts were higher and spending lower than they were last April.”

RealtyTrac – “New Fed Rule Could Reduce Foreclosure Prices” (5-10-12)

“The federal government has proposed new rules that would significantly limit mortgage loan origination fees and possibly result in reduced foreclosure prices.”

Hard Money Loan Closed

Rancho Cucamonga, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $190,000 on a 3 bedroom, 2 bathroom home appraised for $315,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Apartment Owners Association Million Dollar Trade Show on Saturday, May 17, 2012.

The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.

Looking Back:

The NAR stated that home sales rose in 49 states during the first quarter of 2011. A study from the NAHB showed 72.8% of all U.S. homes sold in 2010 were affordable for families earning the national median income. The Financial Crimes Enforcement Network said reports of mortgage fraud reached a record high. Trulia found that third-party syndicators of listings data which did not come from an MLS had an error rate of 21.3 percent for either a listing’s price or status.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

The Mortgage Bankers Association reported a 1.7% increase in mortgage applications from last week.  Single-family home prices increased in almost half of the cities in the U.S. with the median price increasing in 74 of 146 metropolitan areas.  The Florida Supreme Court is set to make a decision regarding fraud in foreclosure proceedings.  Fannie Mae reported they made enough profit in the first quarter and will not have to be bailed out by the Treasury or taxpayers.

In The News:

Bloomberg – “FHA New Foreclosures Jump as Modified Loans Default” (5-8-12)

“The number of Federal Housing Administration-insured home loans entering foreclosure jumped in March after half the mortgages it modified to ease repayment terms were in default again a year or more later.”

Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (5-9-12)

“Mortgage applications increased 1.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 4, 2012.”

Housing Wire – “Fannie Mae profits, avoids Treasury bailout in 1Q” (5-9-12)

“Fannie Mae reported enough profit in the first quarter to offset dividend payments to the Treasury and avoid another bailout from taxpayers.”

Bloomberg – “Home Prices Rise in Half of U.S. Cities as Markets Stabilize” (5-9-12)

“Prices for single-family homes rose in about half of U.S. cities in the first quarter as property markets stabilized.  The median price increased from a year earlier in 74 of 146 metropolitan areas measured, the National Association of Realtors said in a report today. In the fourth quarter, only 29 areas had gains.”

Inman – “Phoenix tops list of 10 turnaround markets” (5-9-12)

“It’s sunny and international in Realtor.com’s “Top Turnaround Towns” for the first quarter of 2012. Seven of the top 10 metros on the list are found in Florida. Seven also made the cut in a recent Inman News analysis of public records that identified the top 10 U.S. hotspots for global buyers.”

Housing Wire – “MBA housing forecast: Some stability amid continued uncertainty” (5-9-12)

“The housing market should continue its gradual recovery this year but plenty of uncertainty remains, according to economists from the Mortgage Bankers Association.”

Bloomberg – “Bank of America Meets Shareholders as Protests Swirl” (5-9-12)

“Bank of America Corp., the second- biggest U.S. lender, is following a “disciplined” strategy to rebuild profit, Chief Executive Officer Brian T. Moynihan said today as protests swirled outside the company’s annual meeting.”

DS News – “Profile of a Refinanced Loan in the First Quarter” (5-9-12)

“According to Freddie Mac’s first quarter refinance analysis, 79 percent of homeowners who refinanced their first-lien mortgage either maintained or reduced their mortgage debt.”

Housing Wire – “Florida Supreme Court to hear game-changing foreclosure case” (5-9-12)

“The Florida Supreme Court will decide whether financial firms can escape or remedy allegations of fraud in foreclosure proceedings by voluntarily dismissing the case.”

Wall Street Journal – “Freddie Mac Chooses CEO” (5-9-12)

“Freddie Mac is preparing to name Donald Layton, the former chief executive of online brokerage E*Trade Financial Corp., as its next CEO, according to people familiar with the matter.”

San Francisco Chronicle – “Rental competition fierce in S.F.’s market” (5-9-12)

“San Francisco rents rose 15.8 percent in the first quarter of this year compared with the same time last year, to an average of $2,663 for all size units, according to RealFacts.”

Hard Money Loan Closed

Downey, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $185,000 on a 3 bedroom, 1 bathroom home appraised for $312,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Apartment Owners Association Million Dollar Trade Show on Saturday, May 17, 2012.

The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.

Looking Back:

Clear Capital reported REO properties accounted for 34.5% of the real estate market. According to Zillow, U.S. home prices fell 3% in the 1st quarter of 2011. Fannie Mae said half of its mortgages were registered under MERS, and was concerned that MERS would cause trouble for the company. A study from LexisNexis showed that California was the worst state for mortgage fraud.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Home prices increased 0.6% from February to March as a result of inventory decreasing.  More people are able to afford homes today with payments on conventional mortgages representing 12% of median-family income.  Shaun Donovan made an announcement today that refinancing should be made easier for homeowners.

In The News:

Housing Wire – “Fiserv Case-Shiller: Home affordability at record levels” (5-8-12)

“Payment on a conventional mortgage for a median-priced home now represents just 12% of median-family income; the lowest percentage since records began in 1971, according to data from the Fiserv ($66.68 -0.38%) Case-Shiller Index released Tuesday.”

Inman- “Shrinking inventory boosts home prices” (5-8-12)

“A national home-price index maintained by data aggregator CoreLogic showed prices edging up from February to March — the first month-over-month increase since last summer.”

DS News – “DataQuick Releases Valuation Tool for Assessing Portfolio Risks” (5-8-12)

“DataQuick launched a valuation tool to help portfolio risk managers with correctly assessing default and loss severity risk.”

NAHB – “Builders Urge Congress to Improve Lacey Act to Protect Consumers, Businesses” (5-8-12)

“The National Association of Home Builders (NAHB) today called on Congress to amend the Lacey Act so that individuals and businesses that unknowingly purchase illegal wood products from overseas do not have their property seized and are not exposed to civil and criminal liability.”

Los Angeles Times – “Feds may seek fines against Wells Fargo in mortgage bias probe” (5-8-12)

“Federal authorities have advised Wells Fargo & Co. that they may seek damages and fines for alleged discrimination in mortgage lending.”

Housing Wire – “Ginnie Mae to tighten MBS standards” (5-8-12)

“Lenders applying for Ginnie Mae mortgage-backed approval will find it more challenging in the coming months, according to one official.”

Bloomberg – “Ally Gets Nod for ResCap Filing as U.S. Seeks Repayment” (5-8-12)

“Ally Financial Inc. (ALLY), the auto lender majority-owned by taxpayers, received U.S. Treasury Department approval to put its Residential Capital unit into bankruptcy as the government seeks to recover bailout funds.”

Housing Wire – “Freddie Mac refinancings reduce mortgage interest rates 27% on average” (5-8-12)

“Freddie Mac borrowers who refinanced reduced interest rates by 27% in the first quarter, a high in the 27-year history of the government-sponsored enterprise’s analysis.”

Los Angeles Times – “HUD Secretary Donovan urges Congress to make refinancing easier” (5-8-12)

“Congress should quickly pass legislation to make it easier for more homeowners to refinance their mortgages, a move that could help households save money on their monthly payments and boost the housing market, Housing and Urban Development Secretary Shaun Donovan said Tuesday.”

Hard Money Loan Closed

San Bernardino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $48,000 on a 3 bedroom, 2 bathroom home appraised for $78,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris of the Norris Group will be speaking at 7 Profit Centers for 2012 and Beyond, tomorrow May 8, 2012.

The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Fannie Mae reported higher confidence in both the economy and value of homes improving.  However, Lewis Ranieri believes the housing market is reaching its lowest level.  Loan modifications decreased 31% in the first quarter of 2012 according to HOPE NOW.  Third party reviews of FHFA REO-t0-Rental program applications are expected to come to a close shortly.

In The News:

Bloomberg – “UBS Bets on Toxic Debt Demand After Fed’s Record Sale: Mortgages” (5-7-12)

“UBS AG (UBSN), which had more than $57 billion of losses and writedowns after the U.S. real-estate crash, is betting there’s enough demand for toxic commercial property assets to sell debt created at the height of the boom.”

DS News – “Fannie Mae: Confidence in Economy and Home Values Increasing” (5-7-12)

“Both the expectation for home prices and the percentage of those who think the U.S. economy is on the right path reached record highs in Fannie Mae’s April 2012 National Housing Survey.”

Housing Wire – “MBA: Regulatory environment to dominate mortgage sector” (5-7-12)

“Rulemakings will dominate the mortgage industry this year as the sector continues its “slow, bumpy road to recovery,” keynote speakers said as the Mortgage Bankers Association’s secondary conference got into full swing Monday in New York City.”

Bloomberg – “Ranieri Says Housing Market in U.S. Is Reaching Bottom” (5-7-12)

“The U.S. housing market is reaching a bottom, according to Lewis Ranieri, the mortgage-bond pioneer.  While “broad” concern that home prices have further to fall is restraining sales, “many, myself included, think we are at a bottom,” Ranieri said today at a conference hosted by the Mortgage Bankers Association in New York.”

Realty Times – “Real Estate Outlook: Green Construction Predicted to Grow “ (5-7-12)

“According to the latest McGraw-Hill construction SmartMarket Report the share of green homes on the market is expected to grow by leaps and bounds in the next four years.”

Housing Wire – “HOPE NOW: Loan mods down 31% in Q1 2012″ (5-7-12)

“HOPE NOW’s March mortgage modification data shows an estimated 207,000 homeowners received permanent modifications in the first quarter of 2012, representing a decline of 31% from Q1 2011.”

NAHB – “100 Housing Markets on Improving List in May” (5-7-12)

“The list of housing markets showing measurable and sustained improvement held virtually unchanged in May at 100, down from 101 in April, according to the National Association of Home Builders/First American Improving Markets Index (IMI), released today. The number of states represented on the list also held firm from the previous month, at 35 (including the District of Columbia).”

DS News – “HAMP Activity Slides, HAFA Holds Steady” (5-7-12)

“The government’s Home Affordable Modification Program (HAMP) continues to add borrowers to its roster each month, but the pace has slowed.  Data released Friday by Treasury and HUD shows 19,940 permanent HAMP mods were granted during the month of March.”

Bloomberg – “Mortgages Beat Corporates With Fed Q3 Discounted” (5-7-12)

“Government-backed mortgage bonds are beating corporate notes even as investors see shrinking odds the Federal Reserve will expand its holdings of U.S. housing debt.”

Housing Wire – “FHFA wrapping up REO-to-rental program bidder reviews” (5-7-12)

“A third party review of bidder applications to the Federal Housing Finance Agency’s REO-to-rental program will conclude in the next few weeks, said Meg Burns, FHFA senior associate director for housing and regulatory policy.”

DS News – “More than 200 Banks Pose High Risk of Failure: Trepp” (5-7-12)

“While the pace of bank closing has slowed this year compared to the year before, in its bank failure report, Trepp noted that there are still more than 200 banks at high risk of failure as of the first quarter of 2012.”

Hard Money Loan Closed

Lancaster, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $60,000 on a 4 bedroom, 2 bathroom home appraised for $105,000.

California Real Estate Investor Events:

The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Sources:
Failed Bank List
Homeownership Rate Falls to 15-Year Low
American family rentals reach 15-year high
Consumer Spending Slows Sharply in March; Savings Rate Edges Up
Residential construction grows slightly in March
Foreclosures Down to 69,000 in March, Inventory Also Down
2012 NAR Investment and Vacation Home Buyers Survey: Sales
Uh-oh: Big banks shrink lending
FHFA delays principal reduction ruling

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big news of the week.  Only 115,000 new jobs were added last month, disappointing numbers for the Bureau of Labor Statistics.  Mortgage modifications for HAMP decreased 33% from last year.

In The News:

Housing Wire - “NY Fed opens bid on more AIG CDOs” (5-4-12)

“The Federal Reserve Bank of New York opened more American International Group ($32.79 -1.35%) CDOs for bidding.”

Realty Times – “Fixed Mortgage Rates Average New All-Time Record Lows” (5-4-12)

“In Freddie Mac’s results of its Primary Mortgage Market Survey®, the average fixed mortgage rates found new all-time record lows, continuing to help keep homebuyer affordability high.”

DS News - “Slow Growth: 115,000 Jobs Added In April, Unemployment Rate Down” (5-4-12)

“The nation added 115,000 jobs in April, far below expectations and a drop from March’s revised payroll growth of 159,000, the Bureau of Labor Statistics reported Friday.”

RealtyTrac - “Foreclosure Loan Modifications Helping or Hurting?” (5-4-12)

“Pressure is mounting in Washington to allow loan modifications with principal balance write-downs to bail out struggling homebuyers who borrowed too much money during the housing boom or took out a second mortgage to buy Hummers or take expensive vacations they couldn’t afford.“

CNN Money - “Postal Closures Likely to Start This Summer“ (5-4-12)

“Last December, the Postal Service agreed to back off closing any more post offices and postal plants until May 15. The moratorium was aimed at giving Congress time to pass legislation to help the service get back on firmer financial footing. The service lost $5 billion in its most recent year and is $12 billion in debt to the Treasury Department.”

Housing Wire - “Ohio AG begins $75 million demolition program” (5-4-12)

DS News- “Treasury to Sell Investments in Small Banks Still in TARP Program” (5-4-12)

“While Treasury has stated it recovered $264 billion of the $245 billion invested in TARP, Treasury Assistant Secretary Timothy G. Massad announced 343 banks still remain in TARP’s taxpayer-funded bank programs.”

Housing Wire – “HAMP mortgage modifications down 33% from last year” (5-4-12)

“Reginald Harper, former CEO of First Community Bank of Hammond, La., pleaded guilty to defrauding the firm out of millions of dollars in phony mortgages.

Hard Money Loan Closed

Fontana, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $140,000 on a 4 bedroom, 2 bathroom home appraised for $245,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the All in or Fold in Northern California on Saturday, May 05, 2012.

Looking Back:

A survey showed that 45% of homebuyers thought they should always buy mortgage discount points. Freddie Mac ended the first three months of the year with a positive net worth of $1.2 billion, and needed no additional funding from Treasury for the first quarter 0f 2011. Automatic Data Processing Inc said the private sector added 179,000 jobs in April 2011.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.