Today’s News Synopsis:
Builder confidence increased for the fourth month in a row and is at its highest since February 2007 with a two point gain. New rules are being established for conducting appraisals for loans that have a higher risk. An investigation into mortgage fraud by the combined action of the federal and state agencies is eminent.
In The News:
Housing Wire – “Ocwen to securitize FHA mortgages” (8-15-12)
A special vehicle put together by subprime mortgage servicer Ocwen Financial Corp. ($23.99 -0.12%) plans to acquire government-backed loans soon and package them into bonds for investors.”
NAHB – “Builder Confidence Continues To Improve in August” (8-15-12)
“Builder confidence in the market for newly built, single-family homes improved for a fourth consecutive month in August with a two-point gain to 37 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. This gain builds on a six-point increase in July and brings the index to its highest level since February of 2007.”
DS News – “Agencies Propose New Appraisal Rules for Higher-Risk Loans” (8-15-12)
“Higher-risk mortgage loans may have a new set of rules to go by when it comes to appraisals.”
Bloomberg – “Freddie-Fannie Push Bank Bad Debt Cost to $84 Billion: Mortgages” (8-15-12)
“Fannie Mae and Freddie Mac have expanded efforts to get refunds on soured mortgages, boosting the cost of faulty home loans and foreclosures at the biggest U.S. banks since 2007 to at least $84 billion.”
Realty Times – “Home Prices on the Rise While Mortgage Rates Remain Low” (8-15-12)
“This past week, Freddie Mac released their U.S. Economic and Housing Market Outlook for the month of August, 2012 which revealed a much needed home price increase. The Freddie Mac House Price Index increased 4.8% from March to June, 2012 which was the largest quarterly increase in eight years.”
CNN Money – “Mortgage probe could lead to action soon” (8-15-12)
“A joint federal and state probe into mortgage-backed securities fraud is close to “significant action,” with a possible announcement in coming weeks or months, according to a source familiar with the probe.”
DS News – “Proposed CFPB Rule Requires Lenders to Provide Free Appraisal Reports” (8-15-12)
“The Consumer Financial Protection Bureau (CFPB) released Wednesday a new proposed rule that would require mortgage lenders to provide home loan applicants with appraisal reports to determine how the value of a property was determined.”
Bloomberg – “Mortgage Bond Market Dwindles to Aid Fed Punch: Credit Markets” (8-15-12)
“The market for mortgage securities backed by the U.S. government is the smallest in three years, bolstering the value of the debt and potentially expanding the effects of any new buying by the Federal Reserve.”
Inman – “RealtyTrac names Web entrepreneur Jamie Moyle CEO” (8-15-12)
“For the second time in less than a year, foreclosure data company RealtyTrac has a new CEO. The company tapped RealtyTrac President and Chief Operating Officer Jamie Moyle to the role, citing his success in advancing Internet-based businesses.”
Apple Valley, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $51,000 on a 3 bedroom, 2 bathroom home appraised for $85,000.
Bruce Norris of The Norris Group will be at the Inland Empire Investors Forum Tuesday, August 28, 2012.
Bruce Norris of The Norris Group will be at the Los Angeles Commercial Real Estate Forum Thursday, August 30, 2012.
Bruce Norris of The Norris Group will be at the Real Estate Investment Expo in Santa Clara Saturday, September 8, 2012.
The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released new data today showing the confidence in building new homes remained at 15 for the second month in a row. The sale of homes in Southern California decreased 4.5% year over year the previous month due to buyers being more cautious about purchasing. Delinquencies were at their lowest since the end of the recession two years prior.
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: appraisals, bruce norris, Consumer Financial Protection Bureau, fannie mae, Federal Reserve, freddie mac, Freddie Mac House Price Index, Housing Market Outlook, NAHB, Ocwen Financial Corp., RealtyTrac, the norris group, Wells Fargo Housing Market Index