Today’s News Synopsis:
The California Senate passed a new bill requiring mortgage servicers to notify borrowers of a right to seek options that would avoid foreclosure. Freddie Mac reports the average interest rate for 30-year FRMs increased by 0.01 percent from last week. Total U.S. non-farm payrolls grew by 431,000 in May. According to SNL Financial, the total value of foreclosed properties held by US banks reached $41.5bn in Q110.
In The News:
Housing Wire - “California Senate Passes Foreclosure Legislation” (6-4-10)
“Senate Bill (SB) 1275 requires mortgage servicers to notify borrowers of a right to seek options that would avoid foreclosure and attach an application for a loan modification or other alternatives before issuing a notice of default (NOD). Also before filing an NOD, servicers must evaluate a borrower who submits a written request for a loan modification. For those denied one, a separate letter must be mailed to the borrower informing them of the denial and reasons why.”
Housing Wire – “CoreLogic Expands Data Coverage to Reach 3,100 Counties” (6-4-10)
“CoreLogic (CLGX: 20.26 -0.39%) the data analytics group spun off by First American Financial (FAF: 13.70 -0.94%), expanded its data-set coverage to 3,100 counties, representing 99.8% of the US population. According to CoreLogic, the public record county assessor data includes land dimensions, legal descriptions, ownership, and tax and value information. The company then links the information to current and historic transaction data such as deeds, mortgages, pre-foreclosure and other involuntary liens.”
Housing Wire – “Rep Sherman Joins Call for Credit-Rating Agency Reform” (6-4-10)
“Credit-rating agencies (CRAs) are often criticized for assigning triple-A status to risk-laden securities that were ultimately written down when the underlying subprime and Alt-A mortgages defaulted. Sherman compared this practice with a baseball team picking its own umpire.”
Bloomberg - “Fannie Mae’s Duncan Says Homebuyer Tax Credit Shifted Demand” (6-4-10)
“The federal homebuyer tax credit shifted demand in the U.S. housing market without having a lasting impact on prices, according to Douglas Duncan, chief economist of Fannie Mae, the largest mortgage financier.”
Realty Times – “Transform Your Home with Home Staging” (6-4-10)
“De-clutter: I know we all accumulate lots of clutter and then get used to living with it. But really, clutter is a big distraction for buyers. Often they simply can’t imagine what the home would look like without all that clutter. So, make it easy for them. Start with a clutter-free home when you list it for sale. De-Personalize: do you want buyers spending more time looking at your personal photos or your home? Easy answer…so, put away the photos and trinkets. Besides, you’re moving…you need to pack them up anyway.”
Realty Times – “Long- and Short-Term Rates Nearly Unchanged From Last Week” (6-4-10)
“Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.79 percent with an average 0.8 point for the week ending June 3, 2010, up slightly from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM averaged 5.29 percent.”
Housing Wire – “Day of Swings Puts Dow Below 10,000 at Close” (6-4-10)
“The Dow Jones Industrial Average (DJIA) lost around 324 points on the day to close below 10,000, marking one of the worst daily declines all year. The fall escalated on disappointing jobs data published this morning by the Department of Labor (DOL). Total non-farm payrolls grew by 431,000 in May as the 2010 Census added 411,000 temporary employees, according to the DOL. The figures fell short of economist expectations. Private-sector employment grew by more than 41,000 in May, below analyst projections of 55,000.”
Housing Wire – “Foreclosed Properties Held by Banks Up 12.4% in Q110: SNL Financial” (6-4-10)
“Foreclosed properties held by US banks reached $41.5bn in Q110, a 12.4% increase from the previous quarter, according to data analysis firm SNL Financial. The amount of foreclosed properties jumped from $36.9bn at the end of 2009. At the end of the first quarter in 2008, that number was $11.7bn. Andrew Schukman, an analyst at SNL Financial said that the amount of one-to-four family properties in some stage of the foreclosure process (and not yet an REO) reached $78.6bn in Q110, up 9.1% from the end of last year.”
One year ago, rates on 30-year home loans surged above 5 percent. Santa Maria became the latest California jurisdiction to reduce development impact fees it charges homebuilders. Economists at IHS Global Insight claimed that Orange County homes were 11% undervalued in the first quarter of 2009. Statistics from The Pew Hispanic Center showed that homeownership rates amongst minorities had climbed significantly since 1995.
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: Alt-a, Andrew Schukman, bank, borrower, bruce norris, CoreLogic, CRA, credit, default, Department of Labor, DJIA, Douglas Duncan, Dow Jones, economist, employment, fannie mae, First American Financial, freddie mac, FRM, homebuyer, loan, modification, mortgage, NOD, real estate, SB 1275, SNL Financial, tax