Today’s News Synopsis:
The Mortgage Bankers Association reported applications for mortgages increased 6.9% from last week. In order to speed up short sales, Fannie Mae and Freddie Mac are requiring loan servicers needing more than 30 days to give them an answer in no more than 60 days. It is expected Bank of America will report almost $2 billion of bad home-equity loans tomorrow.
In The News:
Wall Street Journal – “Betting on Vegas Comeback” (4-17-12)
“In the heat of the real-estate boom, MGM Resorts International MGM +0.11% and Dubai World made an ill-fated bet that the Las Vegas real-estate and gambling market would stay strong for years to come, launching an $8.5 billion casino resort called City Center soon before the market turned. Now, after years of struggles, they are betting that the Las Vegas condo market is approaching a bottom.”
Bloomberg – “Bank of America Faces Bad Home-Equity Loans: Mortgages” (4-18-12)
“Bank of America Corp., whose home- equity mortgage portfolio exceeds its stock market value, probably will say about $2 billion of junior loans are bad assets tomorrow even as some borrowers are still paying on time.”
Mortgage Bankers Association – “Refinance Applications Up, Purchase Applications Down in Latest MBA Weekly Survey” (4-18-12)
“Mortgage applications increased 6.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 13, 2012.”
Realty Times – “Mortgage Rates Staying Low on Renewed Euro Zone Debt Concerns” (4-18-12)
“It is now obvious that the Euro zone financial crisis did not end with the Greece debt swap that took place recently. This week, Spain has become the latest region of concern as bond yields for that country rose to over 6 percent. In the background, Italy continues to be watched very closely as the financial situation there is also not very stable.”
Housing Wire – “Fed opens bidding on AIG CDOs” (4-18-12)
“The Federal Reserve Bank of New York invited eight firms to bid on collateralized debt obligations once held by American International Group ($32.72 0%).”
San Francisco Chronicle – “Fannie Mae Fix By Treasury Said to Preserve U.S. Mortgage Role” (4-18-12)
“U.S. Treasury officials are leaning toward recommending that Fannie Mae and Freddie Mac be replaced with a government safety net for the mortgage finance system and continued federal backing for loans to lower-income homebuyers, according to three people briefed on the discussions.”
Housing Wire – “California foreclosure reform moves forward” (4-18-12)
“Seven bills reforming some foreclosure rules passed committees in the California state legislature this week. The bills were introduced in February. One set of bills extends protections to tenants, giving them 90 days before eviction after the foreclosure sale of the property. Another increases penalties to banks that fail to maintain blighted homes.
“California Attorney General Kamala Harris announced Tuesday that seven bills in her California Homeowner Bill of Rights passed out of legislative committees.”
Inman – “Fannie, Freddie accelerating short sales” (4-18-12)
“Fannie Mae and Freddie Mac will require loan servicers who need more than 30 days to make a decision on a short-sale offer to provide weekly status updates and give a thumbs-up or thumbs-down no later than 60 days after receiving an offer.”
“The National Association of Home Builders (NAHB) today called on Congress to simplify the tax code as part of a comprehensive tax reform effort in order to help small businesses to continue to serve as an engine of economic growth.”
Hard Money Loan Closed
Palmdale, 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 $102,000.
Bruce Norris of The Norris Group will be at All In or Fold on Saturday, April 28, 2012.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Real Estate Investor Rewind for SJREI at Dublin on Wednesday, May 02, 2012.
Approximately $326 million in credit went to over 47,000 taxpayers who didn’t qualify as first-time homebuyers, according to the Treasury Inspector General. When a borrower in default sought a loan modification, the bank was pursuing foreclosure. Ginnie Mae ended the flat fee for servicing reverse mortgages.
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.
Tags: American International Group, Bank of America, bruce norris, California Homeowner Bill of Rights, Euro zone, fannie mae, Federal Reserve Bank of New York, freddie mac, kamala harris, Las Vegas, MGM Resorts International, mortgage rates, NAHB, the norris group, treasury