The Norris Group Blog

Today’s News Synopsis:

Reis Inc. reports that the U.S. apartment vacancy rate rose to 7.8 percent from the previous season. The US Treasury Department increased the cap of HAMP by $4.7 billion after previously cutting the cap down. Hayman Advisors LP recently bought mortgage bonds worth 50 percent of their assets. According to statistics from Altera Real Estate, the average home in Laguna Beach will currently take 11.03 months to sell.

In The News:

Wall Street Journal – “Apartment Glut Expands” (10-6-09)

“The U.S. vacancy rate reached 7.8%, a 23-year high, according to Reis Inc., a New York real-estate research firm that tracks vacancies and rents in the top 79 U.S. markets. The rate is expected to climb further in the fall and winter, when rental demand is weaker, pushing vacancies to the highest levels since Reis began its count in 1980.”

Housing Wire – “CA State Bar Files Petitions on Alleged Modification Fraud” (10-6-09)

“The State Bar of California filed petitions against two attorneys that would render them involuntarily inactive during investigations into their involvement in alleged loan modification fraud. In September, the State Bar identified 16 attorneys that allegedly took fees for the promise of getting a loan modified and then failed to perform the modifications, notify the client or return the fees, according to a release.”

Housing Wire – “Treasury Grants Another $4.7bn to HAMP Servicers” (10-6-09)

“The US Treasury Department made another round of adjustments the total capped incentives to servicers participating in the Home Affordable Modification Program (HAMP). Treasury granted a total $4.7bn of incentive funds from the previously downwardly adjusted cap amount. The recent adjustments, made in late September, bring the total capped amount to to $27bn, according to the Troubled Asset Relief Program’s (TARP) latest transaction report. The latest round of adjustments comes after several adjustments in June and July, which took a total $1.13bn in cuts off the original amount allotted.”

Housing Wire – “Bill Raises Required Down Payment to 5% for FHA Loans” (10-6-09)

“A bill introduced in Congress Monday would increase the minimum down payment for Federal Housing Administration (FHA)-insured mortgages from 3.5% to 5%. The FHA Taxpayer Protection Act of 2009 — HR 3706 — would also prohibit financing initial service charges, appraisals, inspections, or other fees or closing costs with any part of an FHA mortgage.”

Bloomberg - “Bass Buys Mortgages, Metals on Hyperinflation Fear” (10-6-09)

“Kyle Bass, the hedge-fund manager who made $500 million in 2007 betting against subprime securities, is buying shorter-term debt and precious metals, anticipating hyperinflation will lead to higher interest rates. Funds advised by Hayman Advisors LP bought mortgage bonds equal to about 50 percent of assets, Bass wrote in a letter to investors Oct. 2. The Dallas-based investment firm added corporate debt, primarily high-yield loans and bonds, equal to approximately 25 percent of assets. ”

Bloomberg - “California Hotel Foreclosures Triple in Travel Slump” (10-6-09)

“Hotel foreclosures in California more than tripled in the first nine months of this year as business travelers and vacationers cut spending. Foreclosures including the 400-room St. Regis Monarch Beach resort in Dana Point climbed to 47 in January through September from 15 a year earlier. Properties in default more than quadrupled to 259, Irvine, California-based Atlas Hospitality Group said in a statement. Atlas specializes in selling hotels. The survey didn’t include states other than California. ”

Bloomberg - “U.S. Economy on Mend, Housing Poised for Rebound, LaVorgna Says” (10-6-09)

“The U.S. economy is on the mend and housing is poised for a rebound, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York. ”

Orange County Register – “How many Irvine homes sold in September?” (10-6-09)

“Gunther tracked 170 home resales that closed escrow, or a rate of 5.67 sales per day; that’s similar to the 175 sales in July. The median sales price for September was $539,488, down from $585,000 in August. There were 225 leases signed during the month of September, and monthly rents averaged $1.54 per square foot.”

Orange County Register – “New sign of weakness in O.C. high-end housing” (10-6-09)

“The Balboa Island Price Index, or the BIPI, is the brainchild of Girling Real Estate Investment Group. Broker David Girling said the inland lots on Balboa Island lend themselves particularly well to measuring real estate price changes because of the uniformity of lot sizes. Nearly 1,100 of the island’s 1,498 parcels are 30 feet by 85 feet. Yet, Balboa’s 2,550-square-foot lots still remain pricey — with an average price of $1.4 million this past quarter (and that’s the lowest in 5 1/2 years).”

Orange County Register – “Homes selling a bit slower in south coast cities” (10-6-09)

“Laguna Beach’s expected market time has increased to 11.03 months from 10.32 months, according to a biweekly report by Steven Thomas of Altera Real Estate. This makes Laguna the third slowest housing market in the county – behind Corona Del Mar with an 11.53-month market time and Newport Beach with an 11.05-month market time.”

Wall Street Journal – “U.S. Data Show High Mortgage-Denial Rate for Blacks” (10-6-09)

“A Federal Reserve report on home mortgage data showed that blacks and Hispanic whites were far more likely than non-Hispanic whites to be denied last year in applying to refinance. The annual report is based on data collected from more than 8,000 mortgage lenders nationwide under the Home Mortgage Disclosure Act of 1975, known as HMDA.”