Today’s News Synopsis:
Laurence Fink, of BlackRock Inc., warns that government programs to help homeowners may slow the recovery in the mortgage market. The FHA announced that its reserves will fall below congressional requirements. MDA DataQuick reports that fifteen percent of the homes sold in August were bought by investors. Statistics from Trulia show that price cuts in Irvine are more likely to occur in the luxurious areas rather than the popular areas.
In The News:
Bloomberg – “BlackRock’s Fink Says Obama Rules Threaten Markets” (9-18-09)
“BlackRock Inc. Chairman Laurence Fink said Obama administration programs to help homeowners stave off foreclosure may hinder the recovery of the mortgage market while benefiting banks that own second loans on the properties.”
Bloomberg – “FHA Mortgage Insurance Reserves to Fall Below 2% Rule” (9-18-09)
“The Federal Housing Administration, the government agency that insures more than 20 percent of U.S. single-family mortgages, said its reserves will fall below congressional requirements as home prices decline.”
Orange County Register – “Newport hotels cut rates 24%, still empty room grow” (9-18-09)
“The lodging experts at PKF Consulting report that Orange County hotels in July – latest report — saw room rates fall 16.0% in a year. And that couldn’t stop 21.2% of their rooms going empty vs. 16.67% the year earlier.”
Orange County Register – “Investors driving up O.C. home sales” (9-18-09)
“Fifteen percent of the 2,790 homes sold in August — about one out of every seven sales — were purchased by likely investors, or absentee buyers getting their tax bills sent to another address.”
Orange County Register – “Looking for price cuts on Irvine homes?” (9-18-09)
“Irvine home listings were almost twice as likely to be discounted in pricey 92603 than in perenially popular 92602, according to the latest figures from Trulia.com. They cover price cuts as of Sept. 1.”
Orange County Register – “Auditing firm says 95% of loans have state, federal violations” (9-18-09)
“Statistics show that only 10% of people qualify for loan modifications, and 50% of that percentage fall back into trouble within six months, says De Novo Business Development Executive Teri Murphy.”
Inman – “Title insurers back in black” (9-18-09)
“The title insurance industry generated $2.55 billion in premiums during the second quarter, down 8.1 percent from the $2.77 billion in policies written during same period a year ago, the American Land Title Association reported.”
Realty Times – “Turning Internet Confusion into Success: Social Networking” (9-18-09)
“There are three practical reasons to get involved in social networking. The first of these is marketing; social networking gives you the opportunity to brand yourself – either the way that you wish to be branded, or as a readily available expert in your field, thereby connecting you to new customers. The second reason is that it connects you to existing customers. Larger companies such as HP have actually created customer service profiles on Facebook and Twitter and you are far more likely to get more personalized service through those mediums due to the fact that those service reps are relegated to those particular services.”
Looking Back:
One year ago, the Federal Reserve and the ECB injected $180 billion into money markets in an attempt to stop the financial crisis. The U.S. government took over AIG. Home sales fell 1 percent from the previous year.
Tags: BlackRock, bruce norris, DataQuick, FHA, investing, loan modifications, mortgages, real estate, trulia