The Norris Group Real Estate News Roundup 10/4/11

Today’s News Synopsis:

Inman News reported a 20% increase in foreclosure starts on a month-by-month basis from July to August.  CoreLogic released a new report forecasting that mortgage frauds will decrease 40% in the coming year.  In other news, the National Association of Realtors reported a 1.2% decrease in pending home sales for the month of August.

In The News:

Bloomberg“BofA’s Countrywide May Face Fraud Claim After Housing Audit” (10-4-11)

“Bank of America Corp. (BAC), the biggest U.S. lender by assets, should face fraud claims after the firm’s Countrywide unit submitted incorrect data on borrowers for government-insured loans, a federal watchdog said.”

DS News“Credit Union Coalition Develops Foreclosure Intervention Toolkit” (10-4-11)

“The New York-based National Federation of Community Development Credit Unions has completed a new “Credit Union Foreclosure Intervention Toolkit” to help credit unions combat the foreclosure crisis in their communities.”

Housing Wire“FHA and the Short Refi left behind” (10-4-11)

“The $8 billion Federal Housing Administration Short Refi program, launched last September to refinance underwater mortgages helped 301 borrowers in 11 months, according to Department of Housing and Urban Development data analyzed by HousingWire.”

Realty Times“Pending Home Sales Decline “ (10-4-11)

“The latest National Association of REALTORS found that sales dropped 1.2 percent in August.  Lawrence Yun, NAR chief economist, said the decline reflects an uneven market.”

Inman “Foreclosure starts leap in August” (10-4-11)

“Foreclosure starts jumped 20 percent from July to August, with first-time foreclosure starts hitting a 2011 high, data aggregator Lending Processing Services Inc. reportss.”

O.C. Register “Mortgage fraud down 40% this year” (10-4-11)

“Santa Ana-based data firm CoreLogic estimated that the total value of U.S. mortgages tainted by fraud will drop 40% this year to $7.4 billion.  That compares $12 billion worth of fraudulent loans issued in 2010, the firm reported.  The decrease is due mainly to a decline in the overall number of home loans being issued”

San Francisco Chronicle “Mortgage REITs Tumble to Worst Two-Day Loss Since December 2008” (10-4-11)

“Real estate investment trusts that buy U.S. mortgage debt tumbled to the steepest losses since December 2008, on concern that their main source of financing will be roiled by European bank woes.”

CNN Money“Fannie Mae ignored foreclosure abuses” (10-4-11)

“Fannie Mae (FNMA, Fortune 500), the government-controlled mortgage giant, ignored indications that attorneys it hired to handle defaults were abusing the foreclosure process, according to a report from the inspector general for the Federal Housing Finance Agency (FHFA), the agency that oversees Fannie.”

USA Today“Shadow inventory keeps home prices depressed” (10-4-11)

“Stagnant home prices have become part of the new normal nationwide, and one of the big reasons is the nation’s giant shadow inventory — the hundreds of thousands of homes like those on McGregor’s route that are either in foreclosure or repossessed by banks, but not yet on the market.”

Housing Wire “Consumer advocates urge Fed to reject Capital One-ING merger” (10-4-11)

“Consumer advocates Tuesday focused their criticism of the proposed Capital One Financial Corp. (COF: 38.80 +2.78%) acquisition of ING Direct USA (ING: 6.80 +5.43%) on what they described as Capital One’s predatory lending practices and inadequate commitment to reinvest in local communities.”

Looking Back:

GMAC Mortgage, JPMorgan Chase and Bank of America were reconsidering past evictions due to poor foreclosure processing procedures. According to the NAR, pending home sales rose 4.3% in August 2010. CAR expected 2010 home sales to be 10% lower than the total number of sales in 2009. 10.2% of all mortgages in the nation’s top-100 most populated areas were over 90 days delinquent.

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 event 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.

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