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The Norris Group Real Estate News Roundup 8/6/10

Friday, August 6th, 2010

Sources:
http://www.housingwire.com/2010/08/05/weekl-jobless-claims-rise-more-than-expected-to-479000
http://www.realtor.org/press_room/news_releases/2010/08/pending_ease
http://www.housingwire.com/2010/08/03/zillow-rate-on-30-year-mortgage-drops-to-record-low-week-to-week
http://www.housingwire.com/2010/08/06/aig-losses-return-in-q210-on-continued-wind-down-efforts
http://latimesblogs.latimes.com/money_co/2010/08/home-loan-rates-decline-again-as-inflation-fears-abate.html
http://www.mbaa.org/NewsandMedia/PressCenter/73603.htm
http://www.dsnews.com/articles/congress-passes-bill-increasing-fha-premiums-2010-08-05
http://www.bloomberg.com/news/2010-08-04/u-s-consumer-bankruptcy-filings-rose-9-percent-in-july-from-previous-year.html
http://www.reoi.com/news/fannies-reo-volume-doubles-on-mounting-foreclosures-and-longer-disposition-times
http://www.dsnews.com/articles/ahead-of-earnings-gses-scale-back-housing-forecasts-2010-08-05
http://www.reoi.com/wp-content/uploads/Fannie-REO.jpg
http://www.reoi.com/wp-content/uploads/Fannie-REO-by-State.jpg

Today’s News Synopsis:

Non-farm payrolls decreased by 131,000 in July, according to the Department of Labor. HUD’s secretary announced a new program, which will allow borrowers to refinance on underwater mortgages. Barclay’s Capital is taking back their previous estimate of a double dip recession, and now believes we will experience ‘moderate growth’. One-third of U.S. citizens are renting, and more than 14% live in a rental apartment.

In The News:

Housing Wire – “U.S. Payrolls Shed More than Expected, Dropping 131,000 in July” (8-6-10)

“Total non-farm payrolls declined by 131,000 in July, worse than a market consensus decline of 70,000. According to the Department of Labor Bureau of Labor Statistics (BLS), the firings of temporary workers after 2010 Census efforts edged up to 143,000 in July, declined from 225,000 Census layoffs a month earlier.”

Housing Wire – “HUD Secretary Donovan: Refinancing Program Coming ‘Very Soon’” (8-6-10)

“According to a mortgee letter sent out today, the new program would provide additional refinancing options to underwater homeowners starting Sept. 7. To be eligible for the new loan, the homeowner must be underwater but still current on the mortgage. A credit score of 500 or better is required, and the borrower’s existing first-lien holder must agree to write at least 10% of the unpaid principal balance.”

Housing Wire – “Barclays Capital Calls off Double-Dip Recession” (8-6-10)

“Analysts at Barclays Capital believe the latest data on the US economy leans more toward ‘moderating growth’ in the last half of 2010, rather than an outright double-dip. Last week’s real gross domestic product (GDP) in the US, which measures the output of goods and services produced by the country’s labor force, grew 2.4% in Q210 from last year, according to the US Department of Commerce Bureau of Economic Analysis (BEA).”

Housing Wire – “Apartment Rentals Hit Record Highs in 2010, as More Americans Shun Homeownership” (8-6-10)

“Currently one-third of Americans rent their housing, and over 14% live in a rental apartment. The NMHC represents the interests of rental property investors, such as Fannie Mae, Freddie Mac, Stewart Title and Starwood, to name a few.”

Housing Wire - “Navy Federal Introduces 100 Percent Mortgage to Make $7bn Origination Goal” (8-6-10)

“The world’s largest credit union said it’s prepared to originate $7bn in mortgage and refinance originations in 2010, and announced it will offer 100% financing to its members for loans up $650,000. Navy Federal Credit Union said it originated more than $6.2bn in mortgages and refinance loans in 2009. The Virginia-based credit union is the world’s largest, both in terms of total assets ($40bn) and membership (3.4m). Navy Federal serves all current and former Department of Defense military and civilian personnel and their families.”

Housing Wire – “Consumer Credit Down for Fifth Straight Month 0.7 Percent For June” (8-6-10)

“Americans are not in the mood to spend as consumer credit outstanding fell once again in June, according to the Federal Reserve, marking the fifth consecutive month of declines. The benchmark fell $1.3bn, or 0.7%, to $2.418trn due mostly to a $4.5bn, or 6.5%, drop in revolving credit, such as credit cards. Non-revolving credit, which includes mortgages, auto loans, and student loans, rose 2.4% to $1.592bln.”

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.

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The Norris Group Real Estate News Roundup 8/4/10

Wednesday, August 4th, 2010

Today’s News Synopsis:

Mortgage application volume increased 1.3 percent this week, according to the MBA. Large home builders, such as PulteGroup and DR Horton, are claiming a quarterly profit. Analysts expect total payrolls to decline in official Census data which is due Friday. The American Bankruptcy Institute expressed concerns that consumer bankruptcies might total 1.6 million this year.

In The News:

Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (8-4-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 30, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.4 percent compared with the previous week.”

Washington Post – “FHA tells Congress: Mortgage insurance claims are down; home prices a concern” (8-4-10)

“Mortgages backed by the Federal Housing Administration have performed better than expected so far this fiscal year, though the improvements could be overturned if home prices sink, according to a report the agency submitted to Congress this week. That audit found that as the FHA’s loan volume expanded, its default rate rose and the excess cash it set aside to deal with unexpected losses eroded to dangerously low levels as of Sept. 30. The auditors concluded taxpayers would be on the hook for losses if worst-case scenarios played out — a first for the agency, which has always used fees it charges borrowers to pay lenders for losses.”

Housing Wire – “Healthy Quarterly Reports from Homebuilders may be Short-Lived” (8-4-10)

“The country’s top four homebuilders all posted profits in their most recent quarterly earnings report, but with the tax credit gone, analysts predict the bounceback will likely be short-lived, as demand dries up. DR Horton (DHI: 10.48 -1.13%) added its third consecutive profitable quarter while Michigan-based PulteGroup (PHM: 8.38 -0.59%) returned to profitability after years of losses as it continues to try to meet its earlier projections of a profitable 2010.”

Housing Wire – “Census Firings Expected to Weigh on Weak July Private Sector Job Growth” (8-4-10)

“Nonfarm private sector employers added an estimated 42,000 jobs to payrolls in July, according to the Automatic Data Processing (ADP) national employment report published today (download here). The ADP’s estimates do not include layoffs of temporary workers no longer needed for the 2010 Census, however, and analysts are expecting total payrolls to decline in official data, due Friday. ADP also revised its estimate for the increase from May to June up 46% to 19,000, from the initial 13,000 estimate.”

Housing Wire – “20m Borrowers Could Be Underwater before 2012: Deutsche Bank” (8-4-10)

“More than 14m borrowers were underwater as of Q110, owing more on a mortgage than the value of the underlying property. But with a further 10.8% decline in house prices expected relative to Q409 levels, another 6m borrowers are likely fall into negative equity by the end of 2011, according to commentary today by Deutsche Bank.”

Bloomberg – “U.S. Consumer Bankruptcies May Exceed 1.6 Million, Report Says” (8-4-10)

“U.S. consumer bankruptcies, after rising 9 percent last month from June, might exceed 1.6 million this year, according to the American Bankruptcy Institute. The 137,698 bankruptcy filings in July also represent a 9 percent increase from a year earlier, the institute said yesterday in a statement posted on its website, citing data from the National Bankruptcy Research Center.”

Orange County Register – “O.C. apartment rents creep up” (8-4-10)

“A 15-month run of falling rents appears to be at an end, with the biggest landlords doing an about face and raising rents again as their apartments fill up. The average rent for a large Orange County apartment complex increased $4 during the quarter ending on June 30, rising to $1,482, according to apartment tracker RealFacts.”

Looking Back:

One year ago, the NAR announced pending home sales increased by 3.6 percent during July. The nations biggest homebuilders recorded quarterly losses. Approximately 9% of eligible borrowers had received a trial loan modification under the Obama administration’s $75 billion foreclosure prevention plan.

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.

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The Norris Group Real Estate News Roundup 6/28/10

Monday, June 28th, 2010

Today’s News Synopsis:

Statistics from the Federal Reserve show the median borrower who ‘strategically’ defaults doesn’t walk away from the mortgage until the amount owed exceeds the value of the home by 62%. McGraw-Hill Construction reports new construction starts increased 3% in April. According to CoreLogic, more than 11 million borrowers currently owe more on their mortgage than it is worth. Experian statistics show that 19 percent of all defaults in 2009 were strategic.

In The News:

Press Enterprise – “Crash opens market for luxury apartments” (6-26-10)

“While homebuilders are aiming at a more frugal consumer by cutting frills, some apartment developments in San Bernardino and Riverside counties are going upscale with features like granite countertops and hardwood floors and rents comparable to a home mortgage. The Lewis Group of Cos., an Upland-based developer of master-planned communities and apartments, figures that partly because many people have been burned by the housing crash, there is demand from prospective tenants moving out of houses who want and can afford a house-like apartment experience.”

Chicago Tribune – “Moral bankruptcy?” (6-27-10)

“Some have struggled unsuccessfully to keep their homes, and others have just walked away. Phillips decided he wanted revenge and was willing to ruin his credit record for it. When a short sale didn’t work out as planned, the 32-year-old Chicagoan opted for Chapter 7 bankruptcy liquidation, a move that will leave Phillips with little except for the scant possessions in his one-bedroom condo. It also will leave his lender, Chase, with little except for, eventually, a condo that has lost value. Meanwhile, Phillips continues to live there, mortgage-free.”

Los Angeles Times – “Undone by their dreams” (6-26-10)

“In the last four years, according to the San Bernardino County assessor’s office, 373 of the 941 single-family homes in Mission Crest — nearly 40% — have been foreclosed on. Thirty-five have gone through foreclosure more than once. Properties that once sold for nearly $400,000 are worth less than $200,000.”

Mercury News – “Santa Clara County assessor adds Web tools to help homeowners” (6-28-10)

“More than 100,000 residents will be given access to a special website — tracking home sales by neighborhood — where they can see precisely why the assessor’s office decided to assign a particular home its worth.”

Wall Street Journal – “How Far Underwater Do Borrowers Sink Before Walking Away?” (6-28-10)

“At what point do borrowers who owe more than their homes are worth decide to stop paying the mortgage? A new study from economists at the Federal Reserve Board aims to answer that question. The research found that the median borrower who ‘strategically’ defaults doesn’t walk away from the mortgage until the amount owed exceeds the value of the home by 62%.”

Housing Wire – “Monday Morning Cup of Coffee” (6-28-10)

“The House Financial Services Committee issued a statement Sunday urging ‘bold action’ on the Dodd-Frank bill, the reconciled financial reform bill agreed to by a Congressional committee last week and named after Sen Christopher Dodd (D-CT) and Rep Barney Frank (D-MA). The final bill now travels to separate House and Senate votes and then, upon passage by Congress, to a Presidential signature into law.”

Housing Wire – “Surge in Nonresidential Building Boosts May Construction Starts” (6-28-10)

“New construction starts increased 3% from April to May, according to a monthly survey by McGraw-Hill Construction. The seasonally adjusted annual rate of total construction starts was $406.3bn in May, up 3% from $392,988bn in April. For the first five months of 2010, the unadjusted value of total construction starts was $162bn, down 2% from $165bn during the same period of 2009.”

Housing Wire – “The Slippery Slope of Short Sales” (6-28-10)

“More than 11 million borrowers currently owe more on their mortgage than it is worth, according to CoreLogic (CLGX: 18.11 +0.28%)—and this group of borrowers would love nothing more than to replace their current underwater mortgage with whatever the accepted ‘short sale price’ is deemed to be. I don’t know that such a response on the part of borrowers could be deemed irrational, either. Many will ask themselves why they have a mortgage at a higher amount, especially if the bank is willing to sell the house to another buyer for less money.”

Housing Wire – “G20 Applauds Dodd-Frank Bill in Pushing its own Global Financial Reform” (6-28-10)

“The meeting of G20 nations concluded this weekend in Toronto with communiqués reflecting a strong support for the US financial reform, called the Dodd-Frank bill. Indeed, information released from the summit show a mix of ambitious plans for growth, mixed with further calls to reduce spending, especially among countries with higher debt burdens.”

Housing Wire – “Experian Finds 19% of Mortgage Defaults in Q209 are Strategic” (6-28-10)

“Of all mortgage delinquencies in the second quarter of 2009 (Q209), nearly one in five — or 19% — were considered strategic defaults, according to the latest study of default trends by information services firm Experian.”

Bloomberg - “Commercial Mortgages Fail to Pay as Lending Increases” (6-28-10)

“Between 50 percent and 60 percent of loans on skyscrapers, hotels, shopping malls and apartment complexes failed to refinance within a few months of their maturity date this year, Bank of America Merrill Lynch analysts said in a report. That compares with 15 percent to 20 percent in 2008, according to the analysts led by Roger Lehman in New York. About $11 billion in loans, or one-third of the 2010 total, had hit their expected maturity dates through late May.”

Bloomberg - “Fannie Mae, Freddie Mac Should ‘Unwind’ Portfolios, Pimco Says” (6-28-10)

“Fannie Mae and Freddie Mac, the housing-finance companies supported by U.S. taxpayers, should take advantage of demand for government-backed mortgage debt and sell their holdings, according to Pacific Investment Management Co. ‘Since the government’s going to want to unwind them at some point anyway, why not do it at the best levels ever?’ Scott Simon, the mortgage-bond head at Newport Beach, California-based Pimco, manager of the world’s biggest fixed- income fund, said in a telephone interview.”

Inman - “Top 10 states for pending tax credit closings” (6-28-10)

“NAR estimates as many as 180,000 homebuyers who were under contract by April 30 may miss the June 30 closing deadline. To prod lawmakers into find a way to extend the deadline, NAR released a breakdown of how many home purchases are affected in each state.”

Looking Back:

One year ago, Freddie Mac estimated that sales of new and existing homes might increase to an annual pace of 5.1 million in the 3rd quarter. Real Capital Analytics forecasted that $16 billion of office transactions would be completed by the end of 2009. The number of Orange County property owners disputing their taxes jumped 23% near last year’s deadline.

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.

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The Norris Group Real Estate News Roundup 6/14/10

Monday, June 14th, 2010

Today’s News Synopsis:

Christopher Cagan from First American predicts a dip in housing prices in the near future. A study from Harvard University seems to show that high unemployment is fueling the foreclosure crisis. Christopher Thornberg of Beacon Economics believes the recession is currently over, but he expects economic conditions to get worse over the next two years. REIS Inc predicts U.S. apartments may lead a rebound in commercial real estate.

In The News:

Orange County Register – “‘Double dip’ decline seen for housing” (6-13-10)

“In the short to near term, I expect a double dip.  This is the logical aftermath of the sugar shot from the Federal first time buyer tax credit.  It borrowed buyers from the future, and we are now going into that future.  Also we are not too far from the end of the traditional SoCal buying season.  I have already seen asking prices reduced 5% or so in May from April.”

Wall Street Journal – “Trading Down: Can It Still Bankroll Your Retirement?” (6-13-10)

“Trading down to a smaller home is a retirement-planning staple. According to an April study by the Society of Actuaries, 20% of not-yet retirees say they plan to downsize after the last child leaves the nest.”

Los Angeles Times - “Home shortages could develop as recovery unfolds” (6-13-10)

“A housing deficiency isn’t a sure thing, but the potential is certainly there, says David Crowe, chief economist at the National Assn. of Home Builders, who paints a rather ominous scenario in which house and apartment builders won’t be able to keep up with the demand. Wherever the new households come from — adult children moving out for the first time or leaving the nest a second or third time after returning to Mom and Dad’s to weather the economic storm, roommates uncoupling and going their separate ways or young couples starting families — most of them are typically renters. Therefore, the multifamily sector is apt to feel the pinch first, if only because it takes so much longer to build apartments than houses.”

Bloomberg - “U.S. Housing Market Recovery Dependent on Jobs Growth, Harvard Report Says” (6-14-10)

“Job growth will be the key factor in whether the U.S. real estate market can extend a recovery after the end of the federal homebuyer tax credit, according to a Harvard University study. High unemployment is fueling the foreclosure crisis and discouraging the household formation that drives property demand, according to the State of the Nation’s Housing report issued today by Harvard’s Joint Center for Housing Studies.”

Housing Wire – “Monday Morning Cup of Coffee” (6-14-10)

“The Federal Bureau of Investigation (FBI) is preparing a nationwide crackdown on mortgage fraud, with arrests expected to count in the hundreds, beginning as early as this week, the Financial Times reported.”

Housing Wire – “Negative GDP Growth in Q3? Really?” (6-14-10)

“Thornberg essentially noted in his speech that while the recession is over, for now, we’re not there yet in terms of a sustainable economic recovery. He exhorted attendees to enjoy 2010, as he expects the year to be a relatively good one compared to what we may see in 2011 and 2012.”

Housing Wire – “Subprime Mortgage Performance Improving as Delinquencies Drop” (6-14-10)

“The performance of historical subprime mortgages is improving according to two separate reports from Moody’s Investors Service and the Royal Bank of Scotland (RBS). And the rate of homeowners behind on their subprime mortgage is lower across all levels of days past due, albeit at different speeds.”

Housing Wire – “Fiserv Sees Buyer ‘Optimism’ Behind Home Price Increases” (6-14-10)

“Home prices trended up in more than 40% of metropolitan areas (155 of 384 markets) in Q409, including markets in California, Ohio, Michigan and Washington DC, according to analysis of price trends by financial data services provider Fiserv. On average, home prices were down 2.5% in Q409 from the year-ago quarter, which Fiserv noted could be due to continued high unemployment levels, rising interest rates and a high volume of distressed property in markets like Florida, Arizona and Nevada. The data studied for the quarterly report is based on the Fiserv Case-Shiller Indexes.”

Bloomberg - “Equity Residential May Start California Project Within a Year” (6-14-10)

“Equity Residential, the largest publicly traded U.S. apartment landlord, may start building a new development in California within the next year, Chief Executive Officer David Neithercut said. U.S. apartments may lead a rebound in commercial real estate as the economy adds jobs, property research firm Reis Inc. said in May. Vacancies probably will peak at 8.2 percent in 2010 and start to decline in 2011.”

Orange County Register – “Portola Hills homes quickest to sell” (6-14-10)

“The ‘hardest’ O.C. town to find a home to buy in terms of ‘market time’ (supply of homes for sale vs. new purchase deals inked in past month) is Portola Hills at 1.3 months to theoretically sell all for-sale homes at the current buying pace. Or, looking at it another way: quickest to sell. A year ago, this town was at 0.6 months.”

Orange County Register – “Home demand off 20% without tax break” (6-14-10)

“March and April’s surge due to the housing credit robbed May and June of normal activity. There is nothing cyclical about the recent swings in demand, but it is making its way back to normal. It should be back on track by July. Demand, the number of new pending sales over the prior month, decreased by 136 in the past two weeks and now totals 3,167. That is after a 603 home drop two weeks ago. For the first time since March 2008, demand is less than the prior year with 485 fewer pending sales.”

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.

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The Norris Group Real Estate News Roundup 6/10/10

Thursday, June 10th, 2010

Today’s News Synopsis:

According to the NAHB, both demand and production of apartments increased from Q1 2009. Freddie Mac reports rates on 30-year fixed mortgages fell to 4.72 percent this week. RealtyTrac claims U.S. foreclosure activity decreased by 3 percent in May. Household net worth rose by 2.1 percent in the first quarter.

In The News:

NAHB - “Multifamily Builders Less Pessimistic” (6-10-10)

“The multifamily market showed signs of moving back toward stability in the first quarter of 2010, according to the latest NAHB’s Multifamily Market Index (MMI).  The current production index for market-rent apartments jumped to 30.6, 14 points higher than a year earlier, while future demand expectations for Class A apartments rose to 49.6 from 34 and for Class B to 53.1 from 43.9.  For lower-rent units and for-sale condominiums, the current production indexes rose to 38.2 and 25.0, respectively, more than 10 points higher than in the first quarter of 2009.”

Freddie Mac – “Freddie Mac: Mortgage rates hit low for year” (6-10-10)

“Rates on 30-year fixed mortgages fell this week to the lowest level of the year and were barely shy of the all-time low. Mortgage finance company Freddie Mac says the average rate sank to 4.72 percent, down from 4.79 percent last week. It was just above the record of 4.71 set last December.”

Wall Street Journal – “KB Home Buys in Inland Empire” (6-10-10)

“Builder KB Home snapped up 664 partially finished lots in California’s Inland Empire, a sign that one of the nation’s biggest boom-to-bust markets is coming back to life.”

Los Angeles Times – “Foreclosure filings decline 3% in May” (6-10-10)

“Foreclosure activity in the U.S. continued to level off in May with the number of homes caught up in some stage of the process falling 3% from April, a real estate firm said. A total of 322,920 properties received some kind of foreclosure filing last month — either default notices, scheduled auctions or bank repossessions — a 3% drop from April and an increase of less than 1% from May 2009, according to RealtyTrac in Irvine.”

San Francisco Chronicle – “Americans’ wealth rises for 4th straight quarter” (6-10-10)

“The Federal Reserve reported Thursday that household net worth rose by 2.1 percent in the first three months of this year to $54.6 trillion. It marked the fourth consecutive quarter that Americans’ wealth grew.”

Housing Wire – “RealtyTrac: Most Foreclosure Properties Not Underwater” (6-10-10)

“Of all of the foreclosures in the RealtyTrac online database, less than 50% have mortgages worth less than what is owed, said Rick Sharga, senior vice president at RealtyTrac, during a session at REO Expo, which concludes in Dallas Wednesday.”

Housing Wire – “Congress to Consider FHA Reform, Mortgage Insurance Hike” (6-10-10)

“House Resolution (HR) 5072, the FHA Reform Act of 2010, was reported to the House of Representatives Tuesday and could begin facing votes as early as this week. The FHA reform bill would raise the annual mortgage insurance premium to 1.55% from 0.55%.”

Bloomberg - “Subprime Delinquencies Show Clear ‘Positive Shift,’ RBS Says” (6-10-10)

“The proportion of U.S. homeowners turning delinquent on mortgages backing the securities that roiled the global financial system has tumbled in the past three months, even after accounting for a typical seasonal improvement, according to RBS Securities Inc. Of borrowers with subprime loans in 2007-issued bonds who had never missed payments, an average of 2.6 percent fell behind each month, a drop from 3.7 percent in February, representing a 15 percent decline after seasonal adjustments, according to RBS analysts.”

Bloomberg - “Banks Face Short-Sale Fraud as Home ‘Flopping’ Rises” (6-10-10)

“Sergio Natera and Anna McElaney are scheduled to be sentenced in Hartford’s federal court in August after pleading guilty to fraud. Their crime involved persuading lenders to approve the sale of homes for less than the balance owed –known as a short sale — without disclosing that there were better offers. They then flipped the houses for a profit. The Federal Bureau of Investigation, the California Department of Real Estate and mortgage finance company Freddie Mac have warned that such schemes may be spreading after a plunge in values left homeowners owing more than their properties are worth. The scams threaten to deepen losses for lenders that are increasingly agreeing to short sales as an alternative to more costly foreclosures.”

Looking Back:

One year ago, 2,771 new homes and condominiums were sold within one month in the subdivisions tracked by Costa Mesa-based HWMI. The MBA reported that mortgage application volume decreased by 7.2 percent in one week. Steven Kandarian said commercial mortgage defaults will rise in 2011 to 2012.

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.

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The Norris Group Real Estate News Roundup 4/30/10

Friday, April 30th, 2010

Today’s News Synopsis:

MetLife is expecting a comeback in the commercial real estate market. According to LPS, More than 7.3m mortgages in the US are non-current or in REO status this month. Orange County apartment rent rates fell 5 percent during the first quarter of 2010. President Obama nominated Janet Yellen, Peter Diamond and Sarah Bloom Raskin for the Federal Reserve Board of Governors to the US Senate.

In The News:

Bloomberg - “D.R. Horton Gains After Quarterly Profit Tops Analyst Estimates” (4-30-10)

“D.R. Horton Inc., the second-largest U.S. homebuilder by revenue, climbed the most in three months after reporting its second straight quarterly profit on increased demand for houses. Net income was $11.4 million, or 4 cents a share, for the quarter ended March 31, compared with a loss of $108.6 million, or 34 cents, a year earlier, the Fort Worth, Texas-based company said today in a statement. The results beat the average of 11 estimates in a Bloomberg survey that showed analysts predicted the company would roughly break even.”

Bloomberg - “MetLife Expects Commercial Real Estate to Rebound” (4-30-10)

“MetLife Inc., the largest U.S. life insurer, said there are signs of a recovery in the commercial real estate market after property values dropped about 40 percent from their peak. The company gained the most in seven weeks in New York trading.”

Housing Wire – “Obama Nominates Three to Federal Reserve Board of Governors” (4-30-10)

“President Barack Obama on Thursday sent three nominations for the Federal Reserve Board of Governors to the US Senate. His nominees include Janet Yellen, president of the Federal Reserve Bank of San Francisco; Peter Diamond, an institute professor at the Massachusetts Institute of Technology (MIT); and Sarah Bloom Raskin, commissioner of financial regulation for the State of Maryland.”

Housing Wire – “Geithner Threatens Crack-Down on HAMP Servicers” (4-30-10)

“‘I want to be clear that we do not believe servicers are doing enough to help homeowners, not doing enough to help them navigate the difficult and often frightening process of avoiding foreclosure,’ he said in prepared remarks.”

Housing Wire - “Non-Current Mortgages, REO Reach 7.3m in March: LPS” (4-30-10)

“More than 7.3m mortgages in the US are non-current or in REO status through March 2010, according to the Lender Processing Services (LPS) (LPS: 38.065 -0.41%) Mortgage Monitor report. Data and analytics firm LPS reported the modest improvements in the amount of loans becoming current has been overshadowed by this large pool of non-current assets, which represent more than 12% of all active loans in the country. The volume of distressed mortgages is up 19.3% from a year ago.”

Orange County Register – “O.C. apartment rent down 5%” (4-30-10)

“The average rent for a unit in a large Orange County apartment complex fell 4.8 percent during the first quarter of the year, down to $1,475 a month, according to RealFacts. However, the average asking rent pulled out of its nose dive, rising $2 a month from the previous quarter. Rents had fallen steadily for the previous 15 months.”

Orange County Register – “County seeks fee for property tax appeals” (4-30-10)

“An Orange County administrator wants to impose a $30 per parcel fee on property tax appeals this summer to help offset the costs of administering the hearings and to discourage fraudulent and frivolous actions. The proposal was made by Darlene Bloom, clerk of the Board of Supervisors, whose office administers appeals of property tax assessments.”

Realty Times – “Seniors Looking to Downsize, Seek Opportunities to Socialize in Urban Living Areas” (4-30-10)

“there’s a changing mindset emerging. ‘Senior citizens no longer want to be in an isolated place.’ Many are selling their homes and looking for a community connection in the location where they plan to purchase their next home. ‘Like the rest of America, there was this movement going out toward suburbia. Now, there’s a movement going back toward more urban areas and towns are starting to be challenged,’ says Matthews.”

Looking Back:

One year ago, foreclosure filings increased dramatically during March. The U.S. Senate rejected legislation letting U.S. bankruptcy judges cut mortgage terms to help borrowers avoid foreclosure. The average rate of a 30-year mortgage dropped to 4.78 percent.

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The Norris Group Real Estate News Roundup 4/6/10

Tuesday, April 6th, 2010

Today’s News Synopsis:

A recent Fannie Mae survey shows that approximately two-thirds of Americans would still prefer to own a home. Independent mortgage bankers and subsidiaries made an average profit of $890 on each loan they originated in the fourth quarter of 2009. The National Bankruptcy Research Center claims that bankruptcies could total over 1.5 million this year. According to Reis Inc, rent prices declined by 1.6 percent from last year.

In The News:

CBIA - “Road to Recovery” (4-6-10)

“The economic downturn has put California in a critical position, but homebuilders could play a major role in helping with the state’s recovery. CBIA has focused on six pieces of legislation this session that could help lead the state on that road. None is more important than an extended homebuyer tax credit, but all six are vital to helping the state, and the building industry, move forward.”

CNN - “With caution, Americans still want a house” (4-6-10)

“Nearly two-thirds of Americans would still prefer to own a home, although the recent housing market turmoil and uncertain economy have made them a little more cautious about how and when, according to a survey released Tuesday. A nationwide survey conducted by mortgage lender Fannie Mae found 65% of the homeowners and renters believe there is still value in owning a home.”

Mortgage Bankers Association – “Production Profits Held Steady in 4th Quarter 2009, According to MBA Study of Independent Mortgage Bankers and Subsidiaries” (4-6-10)

“Independent mortgage bankers and subsidiaries made an average profit of $890 on each loan they originated in the fourth quarter of 2009, down from $902 per loan in the third quarter of 2009, but up from $296 in the fourth quarter of 2008, according to the Mortgage Bankers Association (MBA).”

Sacramento Bee – “California expected to cancel tax on forgiven mortgage debts” (4-6-10)

“Relief appears imminent for thousands of Sacramento homeowners hit with state tax bills for mortgage debts forgiven in 2009. State lawmakers said Monday they plan to cancel the state tax obligations with a vote Thursday.”

Inman - “Bankruptcies could exceed 1.5M this year” (4-6-10)

“More consumers filed for bankruptcy in March than in any other month after Congress overhauled federal bankruptcy laws in 2005, according to a release by the American Bankruptcy Institute. Monthly filings for March reached 149,268, a 34 percent increase from the month before when filings totaled 111,693, and a 23 percent year-over-year increase when consumers submitted 121,413 filings, the institute said. The findings are based on data from the National Bankruptcy Research Center.”

Housing Wire – “Lenders Look to Prevent Mortgage Fraud Before Origination With New Software” (4-6-10)

“Wells Fargo (WFC: 32.10 +1.87%) recently implemented mortgage fraud detection software, called LoanSafe Fraud Manager and developed by First American CoreLogic. At least 10 other lenders are following Wells’ lead and testing out the software to see how well it works against their current systems.”

Bloomberg - “U.S. Apartment Rents Decline as Vacancies at Record, Reis Says” (4-6-10)

“U.S. apartment rents dropped in the first quarter and the vacancy rate remained at a record as unemployment near a 26-year high limited tenant demand. Actual rents paid by tenants, known as effective rents, declined 1.5 percent from a year earlier, Reis Inc. said in a report today. Asking rents fell 1.6 percent, according to the New York-based property research firm. Vacancies were unchanged at 8 percent, the highest level since 1980, when Reis began tracking the number, said Victor Calanog, director of research.”

Looking Back:

One year ago, General Growth announced that its bankruptcy would not occur quickly. Altera Real Estate reported a total of 4,092 distressed properties in Orange County. One-third of California’s 267,000 foreclosure sales in 2008 were rental units

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The Norris Group Real Estate News Roundup 2/17/10

Wednesday, February 17th, 2010

Today’s News Synopsis:

 CBIA announced that housing affordability has decreased in 22 of California’s 28 metropolitan areas. The Commerce Department reports that housing and apartment construction increased by 2.8 percent last month. According to SFAR, there is a 3.5 month supply of housing inventory in the San Francisco market. A survey shows that large investment companies are spending more on REIT investments.

In The News:

CBIA – “California Housing Affordability Continues Slide in Fourth Quarter, CBIA Announces” (2-17-10)

“Housing affordability in California continued to fall throughout most of the state during the fourth quarter of 2009, the California Building Industry Association said today. The quarterly National Association of Home Builders/Wells Fargo Housing Opportunity Index found that homes were less affordable in 22 of the state’s 28 metro areas included in the report.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (2-17-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 12, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 2.1 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 0.5 percent compared with the previous week.”

Los Angeles Times – “Housing construction rises 2.8 percent in Janury” (2-17-10)

“The Commerce Department said Wednesday that construction of new homes and apartments rose 2.8 percent last month to a seasonally adjusted annual rate of 591,000 units. That was better than the 580,000 annual pace that economists were forecasting.”

Housing Wire – “Continental Conflicts Arising Over Banker Pay” (2-17-10)

“The majority of banking executives oppose government intervention in setting bank compensation parameters, according to a bank executive survey conducted from Nov. 17-Dec. 3, 2009 by US audit firm Grant Thornton. The sentiment, however, is not as greatly embraced abroad. The survey found 96% of 246 respondents do not agree the government should play a role in determining compensation, while 61% do not think a requirement to evaluate compensation will reduce excessive risk-taking.”

Housing Wire – “San Francisco Inventory at 3.5 Month Supply” (2-17-10)

“Despite a lull in luxury home sales, prices are up and inventory is down in the San Francisco market, according to a joint research report released by the Rosen Consulting Group and the San Francisco Association of Realtors. The report said there is a 3.5-month supply of single-family homes on the market, down from 5.8 months in January 2009. Condo inventory was at a 4.1-month supply, down from 9.5 months in January 2009.”

Housing Wire – “FHFA Proposes New Performance Goals for Fannie, Freddie” (2-17-10)

“The FHFA required, as the first goal for single-family housing, that 27% of the total number of mortgages purchased by Fannie and Freddie be of low-income family housing. The FHFA defined low-income as not exceeding 80% of the area median income.”

Inman - “5 arguments for open houses” (2-17-10)

“Want to pick a fight in a roomful of real estate agents? Ask them whether they think open houses are worthwhile. We did the virtual equivalent of that, sending out an online request for comments from real estate agents about the effectiveness of open houses — and they responded by filling up the old inbox faster than we could clean it out. Their responses range from passionate conviction that open houses are ‘a must,’ to cynical observations that they’re of benefit to no one other than to agents who are trolling for new clients.”

Realty Times – “Investor Report: REITs” (2-17-10)

“New York and London-based research firm Preqin reports that 62 percent of the large investment companies it surveyed said they plan to buy into – or add to their holdings – of private equity REITs, or real estate investment trusts. That’s up from 45 percent in a similar survey Preqin conducted in early 2009.”

Looking Back:

One year ago, the NAHB reported that builder confidence reached an all-time low. CBIA claimed that the pace of new home sales was continuing on a decreasing trend. The California government ended 20,000 jobs. S&P estimated that commercial real estate defaults would reach 3.5 percent by the end of 2009.

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The Norris Group Real Estate News Roundup 2/4/10

Thursday, February 4th, 2010

Today’s News Synopsis:

Marcus & Millichap annual apartment report places San Diego in second place for stability and possible growth in 2010. Statistics from MDA DataQuick show that 18,621 California homes sold for over 1 million dollars last year. Freddie Mac reports that the rate for 30-year fixed rate mortgages increased to 5.01 percent. PMI predicts that home values are near to reaching the bottom.

In The News:

Sign on San Diego - “Apartment activity is on upswing” (2-4-10)

“San Diego County’s apartment market ranks second nationally after Washington, D.C., in its outlook for stability and possible growth in 2010, according to Marcus & Millichap’s annual apartment report covering 44 metro areas. Two other reports came to the same conclusion: San Diego’s rental market is on the way up.”

DQNews - “Million-dollar home sales plummet in Golden State” (2-4-10)

“A total of 18,621 Golden State homes sold for a million dollars or more last year. That was down 23.8 percent from 24,436 in 2008. In 2007 it was 42,506; in 2006 it was 50,010; and in 2005 it peaked at 54,773. Last year was the lowest sales count since 2002, when 15,703 were sold, according to San Diego-based MDA DataQuick.”

Bloomberg - “Mortgage Rates on 30-Year U.S. Loans Rise to 5.01%” (2-4-10)

“The rate for 30-year fixed U.S. home loans rose to 5.01 percent for the week ended today from 4.98 percent, mortgage finance company Freddie Mac said in a statement. The average 15- year rate was 4.40 percent, according to the McLean, Virginia- based company.”

Housing Wire – “GMAC Loses $5bn on Mounting Mortage Woes” (2-4-10)

“GMAC Financial Services (GOM: 19.8199 -0.85%) posted an expected Q409 net loss of $5bn, as losses related to legacy assets in the company’s mortgage operations continue to mount. The Q409 loss compares to net income of $7.5bn in Q409 and net loss of $747m in Q309. For all of 2009, GMAC reported a net loss of $10.3bn, compared to net income of $1.9bn in 2008.”

Housing Wire – “Home Values Likely Reaching Bottom: PMI” (2-4-10)

“The risk of home prices dropping even lower in the next two years is stabilizing in most Metropolitan Statistical Areas (MSAs), according to the PMI Mortgage Insurance Risk Index. The decline in the risk of house values falling further may indicate a bottoming out of the market.”

Housing Wire – “FHFA Home Index Updates Help Smooth Price Volatility” (2-4-10)

“According to the FHFA, the updates to their purchase-only house price index (HPI) since Q404 show a tendency to dampen house price volatility. Indeed, the last monthly HPI from the agency showed national prices rose 0.7% on a seasonally adjusted basis from October to November. That was after October’s previously reported 0.6% increase was adjusted to 0.4%.”

Housing Wire – “Home Prices Hit First Annual Gain Since 2006: Clear Capital” (2-4-10)

“Home prices in January increased 2.3%, marking the first year-over-year increase in more than three years, according to the Home Data Index (HDI) from Clear Capital, the real estate data provider. In all, prices gained 1.8% on the rolling-quarterly scale into January.”

Inman - “Feds to restrict foreclosure rescue firms” (2-4-10)

“Federal regulators say they intend to follow the lead of many states in banning for-profit companies from collecting advance fees from homeowners in exchange for promises to help them obtain loan modifications or avoid foreclosure. A rule proposed today by the Federal Trade Commission would bar for-profit companies that work with lenders and servicers on behalf of homeowners to modify loans or avoid foreclosure from collecting payment until after such services are provided, and impose other restrictions on their practices.”

Looking Back:

One year ago, the MBA reported that the mortgage application volume was significantly increasing. Pulte Homes, a large U.S. building company, reported 9 months of consistent profit loss. The HOPE lending program had only refinanced 25 loans since it began in October.

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The Norris Group Real Estate News Roundup 1/26/10

Tuesday, January 26th, 2010

Today’s News Synopsis:

CBIA reports that 36,209 building permits were issued in California last year. The 30-year mortgage rate decreased by 0.4 percent in December. DBRS expects loan servicers to allow more principal reductions as more attempted modifications fail. According to RealFacts, the average  Orange County apartment rent fell 6.7% during the 4th quarter of 2009.

In The News:

CBIA - “It’s Official: California Housing Production Reached New Low in 2009″ (1-26-10)

“California homebuilders put up the lowest number of homes for a single year in 2009, beating the previous low that was set in 2008, the California Building Industry Association announced today.  CBIA said just 36,209 permits were issued statewide last year for new homes, apartments, condominiums and townhomes, down 44 percent from 2008 and down a whopping 83 percent – 176,751 units – compared to 2004, the peak of the latest cycle.”

Housing Wire – “Mortgage Insurer MGIC Loses $1.3bn in 2009″ (1-26-10)

“The Wisconsin-based mortgage insurer posted a total $1.3bn net loss in all of 2009, more than double the $525.4m net loss in all of 2008.”

Housing Wire – “Mortgage Rates Dip in December, Stay Above 5 Percent” (1-26-10)

“The average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.05% in December, down from 5.09% in November. The average interest rate on 15-year, FRM of $417,000 or less was 4.54%, down from 4.63% in November.”

Housing Wire – “Going Forward, BarCap Expects Mixed Results from REITs” (1-26-10)

“Analysts at Barclays Capital (BarCap) project mixed results from the real estate investment trust (REIT) sector, as the companies begin releasing their Q409 and year-end earnings reports. On average, the analysts expect fourth quarter funds from operations per share (FFOPS) for the REIT sector to increase 6.1% year-over-year, but decline 28.1% on an operating basis, which they define as excluding non-recurring items.”

Housing Wire – “Home Prices Continue to Improve in November” (1-26-10)

“Annual home price declines were in the single digits in November 2009, as the Standard & Poor’s (S&P)/Case-Shiller home price indices continue a 10-month run of improved results. The monthly indices track existing home prices every month on a year-over-year basis in 20 markets, broken down in 10-city and 20-city composites. The 10-city composite declined 4.5% and the 20-city composite declined 5.3% in November 2009 compared to November 2008.”

Housing Wire – “DBRS Expects Re-Defaults to Drive Principal Forgiveness” (1-26-10)

“With more than half of all modified loans expected to re-default in 2010, servicers are likely to increase the use of principal forgiveness, as an option to bring these continually distressed mortgages current, rating agency DBRS said in commentary yesterday.”

Bloomberg - “Fed Weighs Interest on Reserves as New Policy Rate“ (1-26-10)

“Federal Reserve policy makers are considering adopting a new benchmark interest rate to replace the one they’ve used for the last two decades. The central bank has been unable to control the federal funds rate since the September 2008 bankruptcy of Lehman Brothers Holdings Inc., when it began flooding financial markets with $1 trillion to prevent the economy from collapsing. Officials, who began a two-day meeting at 2 p.m. today in Washington, have said they may replace or supplement the fed funds rate with interest paid on excess bank reserves.”

Orange County Register – “Lake Forest has biggest O.C. rent cuts” (1-26-10)

“The average rent in that city was $1,347 a month during the fourth quarter vs. $1,520 in the fourth quarter of 2008. That compares to an average decrease of $105 countywide, according to RealFacts. The average  Orange County apartment rent fell 6.7% to $1,473 during the final three months of last year.”

Orange County Register – “4 O.C. cities top CA. home price gains” (1-26-10)

“The overall median price in December  was $496,070, down 0.6% from November, but up 12.1% from the prior year. Sales were up 4.5% from November and up 17.9% from December 2008.”

Looking Back:

One year ago, the NAR reported that existing home sales had increased by 6.5 percent within one month. Statistics from First American Corelogic showed that home prices fell in 38 U.S. states. Banks disposed of over $1 billion in loan and construction debt within one quarter. Distressed home sales represented 50 percent of the Southern California housing market.

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