Today’s News Synopsis:
This week’s video is a slideshow of important events in the world of real estate. The news today recaps past stories from this week covered in the video. Top stories include four banks closing last Friday, bringing the new total now to 28. Moody’s Analytics reported more and more people are renting homes as opposed to buying them. Reasons include the increase in foreclosures, income, and because the rental market is more favorable. The Mortgage Bankers Association reported an increase in mortgage applications by as much as 18% from last week, the highest since 2009.
Top News Stories of the Week:
Realty Trac – “REO Inventory Ballooning as Banks Hold Back Housing” (6-11-12)
“In the May 2012 issue of the Foreclosure News Report, real estate attorney, investor, author and trainer William Bronchick argues that banks are “hoarding foreclosure inventory” and overvaluing their real estate owned (REO) properties in an attempt to squeeze more money out of their distressed portfolios. Bronchick believes that the growing glut of REO is hurting real estate markets where inventory is tight.”
DS News – “Bank Failure Tally Jumps to 28 After Busy Friday” (6-11-12)
“The FDIC’s Deposit Insurance Fund (DIF) took a combined hit of approximately $80.8 million Friday after the closure of four banks.”
Housing Wire – “CoreLogic: Negative equity props up home prices in toughest markets” (6-11-12)
“The negative equity problem may actually be pushing up home prices at the bottom of some of the hardest-hit housing markets, according to a report from CoreLogic ($16.97 0.03%).”
Mortgage Bankers Association – “Commercial/Multifamily Mortgage Balances Up $8.1 Billion in First Quarter” (6-12-12)
“The level of commercial/multifamily mortgage debt outstanding increased by $8.1 billion, or 0.3 percent, in the first quarter of 2012, as three of the four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA).”
Los Angeles Times – “New California foreclosure starts up slightly in May” (6-12-12)
“New foreclosure starts in California ticked up in May from the prior month, a new report shows.”
DS News – “Rental Market Still Tightening: Moody’s” (6-12-12)
“With vacancies declining and rental prices rising, the climate in the housing industry is clearly warming up to rental properties.”
Bloomberg – “Southern California Home Prices Climb to a 20-Month High” (6-13-12)
“Southern California home prices rose in May to their highest level in 20 months as costlier properties in coastal areas made up a bigger share of sales, DataQuick said.”
Mortgage Bankers Association – “Mortgage Applications Reach Highest Level Since 2009 in Latest MBA Weekly Survey” (6-13-12)
“Mortgage applications increased 18.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 8, 2012. Last week’s results included an adjustment for the Memorial Day holiday.”
Housing Wire – “FHFA: Fannie, Freddie still in critical condition” (6-13-12)
“The Federal Housing Finance Agency, in its fourth annual report to Congress assessing Fannie Mae’s and Freddie Mac’s financial soundness, said the GSEs remain in critical shape.”
DS News – “Shadow Inventory Falls to 1.5M, Lowest Level Since 2008: CoreLogic” (6-14-12)
“As of April 2012, 1.5 million homes are in shadow inventory, which is a 14.8 percent decrease from last year in April when the number of homes hiding in the shadows was 1.8 million, CoreLogic reported Thursday.”
DS News – “Jobless Claims Climb for 5th Time in 6 Weeks “ (6-14-12)
“First time claims for unemployment insurance rose to 386,000 for the week ended June 9, from the prior week’s 38,000, (revised from the originally reported 377,000) the Labor Department, reported Thursday.”
DS News – “New York AG Introduces Bill to Punish Fraudulent Foreclosures ” (6-14-12)
“New York Attorney General Eric Schneiderman announced Thursday the introduction of his bill in the state Legislature that would protect New Yorkers from fraudulent business practices in the foreclosure process.”
DS News – “Foreign Housing Market Continues to Grow in U.S.: Realtor Report “ (6-14-12)
“The combination of low housing prices and the comparative weakness of the dollar continues to push foreign buyers to the United States raising international home sales to $82.4 billion up from $66.4 billion last year, according to the National Association of Realtors (NAR) 2012 Profile of International Home Buying Activity.”
Hard Money Loan Closed
Palm Desert, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $225,000 on a 2 bedroom, 2 bathroom home appraised for $380,000.
Bruce Norris of The Norris Group will be at the NSDREI 8th Anniversary Dinner Party Tuesday, June 19, 2012.
Bruce Norris of The Norris Group will be at the AREAA 2012 Home Buyer & Real Estate Investment Fair Saturday, July 21, 2012.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the InvestClub for Women Tuesday, September 18, 2012.
Looking Back:
Fannie Mae announced that it will be extending its offering of money to partially cover the closing cost of a house that they earlier repossessed now back on the market. According to Inman News, economists adjusted their predictions of the economy, now not expecting a recovery until 2012. The median price of homes in the Bay Area fell drastically from a year prior, according to DQ News.
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.
About Bruce Norris
Bruce Norris is an active investor, hard money lender, and real estate educator with over 30 years experience. Bruce has been involved in over 2,000 real estate transactions as a buyer, seller, builder and money partner.
Tags: Aaron Norris, bruce norris, CoreLogic, DataQuick, Deposit Insurance Fund, Eric Schneiderman, fannie mae, FDIC, Federal Housing Finance Agency, foreclosure, freddie mac, labor department, mortgage applications, mortgage bankers association, national association of realtors, reo, southern california, the norris group