Today’s News Synopsis:
The MBA’s weekly survey shows that mortgage applications increased by 2.1 percent from the previous week. Trepp reports that overall delinquency rates for commercial mortgage-backed securities increased to 5.65 percent. According to ADP Employer Services, 169,000 jobs were cut last month.
In The News:
Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (12-2-09)
“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November 27, 2009, which was a shortened week due to the Thanksgiving holiday. The Market Composite Index, a measure of mortgage loan application volume, increased 2.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 29.3 percent compared with the previous week.”
Housing Wire – “Hotel Default Raises CMBS Delinquency, Trepp Says” (12-2-09)
“The overall delinquency rate among commercial mortgage-backed securities (CMBS) rose 85 bps to 5.65% in November, from 4.8% a month earlier, according to a monthly report by CMBS and commercial mortgage information provider Trepp.”
Housing Wire – “FHA is ‘Not the Next Subprime’: HUD’s Donovan” (12-2-09)
“The capital reserve ratio at the FHA, which ensures approved lenders against default-related losses, recently plunged below the congressionally-mandated 2% minimum. HUD aims to strengthen the capital position at FHA by enforcing standards and cutting down on lenders that violate FHA’s standards, most recently this week with the withdrawal of Lend America’s FHA approval.”
Bloomberg – “General Growth Wins Interim Approval of Debt Plan” (12-2-09)
“General Growth Properties Inc., the second-largest U.S. mall owner, won preliminary court approval of the outline of its plan to restructure $9.7 billion of mortgage debt owed on 92 shopping centers and office buildings.”
Bloomberg – “ADP Says U.S. Companies Cut Estimated 169,000 Jobs” (12-2-09)
“An estimated 169,000 jobs were eliminated last month, the fewest since July 2008, according to data from Roseland, New Jersey-based ADP Employer Services today. The figures were forecast to show a decline of 150,000 jobs, according to the median estimate of 32 economists in a Bloomberg survey.”
Orange County Register – “Appraisers see O.C. home prices off 15%” (12-2-09)
“Orange County values (from reviews of 39 homes) are falling at a 15% annual rate. That’s up slightly from the 14% rate of loss in year ended in April! The appraisers put losses in northern O.C. at a 20.9% annual rate; off in central O.C. at a 17.7% annual rate; and southern/beach falling at a 9% annual rate.”
Inman – “Corcoran promoting new iPhone app” (12-2-09)
“Corcoran’s iPhone app can use the smart phone’s Global Positioning System (GPS) satellite capabilities to display apartments, condos and open houses near the user’s location. It also allows for customized searches, displaying full screen photos of properties listed for sale or rent with Corcoran. Users can choose to be notified of new listings and open houses, and the app will also deliver information about local restaurants, nightlife and shopping.”
Realty Times – “Realtor Organization Opposed FHA Anti-Flipping Rule” (12-2-09)
“proponents of the CAR motion argued that, in the current environment, the effect of the anti-flipping rule was actually to harm potential FHA buyers and to shut them out of the real estate market.”
Looking back:
One year ago, some economists expected to see a bottom in housing prices after the 2nd quarter of 2009, while others claimed that prices would not bottom until 2011 or 2012. Radar Logic reported that Sacramento had the biggest home price decline of all the major cities the company analizes. TransUnion found that 3rd quarter delinquencies increased the most in San Francisco and Los Angeles.
Tags: ADP Employer Services, appraiser, bruce norris, capital reserve, commercial, Corcoran, delinquency, employment, FHA, general growth, HUD, Lend America, MBA, mortgage, mortgage bankers association, real estate, Trepp