Sources:
Multifamily mortgage originations jump 13%
Builder Confidence for the 55+ Housing Market Ends Fourth Quarter on an Upswing
HAMP Mods Approach 1M Mark
Mortgage mods in 2011 down 40% from prior year
Fewer young adults hold jobs than ever before
Report Reveals Number of Foreclosures Down From Last Year
Mortgage giants to pay $25 billion in foreclosure settlement
REAL ESTATE: California receives up to $18 billion in multistate settlement
Wells Fargo to start $5.3 billion foreclosure settlement relief in March
Banks Paying Homeowners a Bonus to Avoid Foreclosures: Mortgages

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big news of the week.  30-year mortgage rates continue to hold at record lows of 3.87%.  DS News reported Bank of America will be required to pay $1 billion in settlement fees for their part in mortgage fraud.  In other news, the values of homes decreased over 1% in the fourth quarter, although the decrease for this year is expected to be lower than 2011.

In The News:

San Francisco Chronicle – “30-year mortgage rates hold at record low of 3.87%” (2-10-12)

“Rates for 30-year U.S. mortgages held at the lowest level on record as fewer Americans sought loans for home purchases.  The average rate for a 30-year fixed loan was unchanged in the week ending Thursday at 3.87 percent, the lowest in records dating to 1971, Freddie Mac said in a statement.”

DS News – “U.S. Resolves Claims Against BofA Through $1 Billion Settlement” (2-10-12)

“Bank of America will pay $1 billion to settle on the largest False Claims Act relating to mortgage fraud.   As part of the $25 billion settlement, Loretta E. Lynch, U.S. attorney for the Eastern District of New York, announced that the government will resolve its claims against Bank of America, Countrywide, and certain Countrywide subsidiaries and affiliates for underwriting and origination mortgage fraud.”

Housing Wire – “Construction job cuts account for one-third of 4Q mass layoffs” (2-10-12)

“Mass layoffs in the fourth quarter of 2011 declined to their lowest level in six years, but construction jobs still took a big hit on the end of seasonal hiring, the government said Friday.”

Bloomberg - “Pimco: Foreclosure Deal Cheap for Banks” (2-10-12)

“The government’s deal with banks over their foreclosure practices after 16 months of investigations is cheap for the loan servicers while costly for bond investors including pension funds, according to Pacific Investment Management Co.’s Scott Simon.”

CNN Money – “Mortgage deal: What the critics say” (2-10-12)

“The $26 billion mortgage settlement had a lot of support — as evidenced by the 49 out of 50 state attorneys general that signed on to it.  The deal, which was announced Thursday, also won praise from groups as diverse as the Mortgage Bankers Association, the industry trade group for lenders, and the Center for Responsible Lending, a public interest group advocating for borrowers.”

Housing Wire – “Three California real estate investors plead guilty to bid rigging” (2-10-12)

“Three Northern California real estate investors agreed to plead guilty to forming a conspiracy to rig bids at foreclosure auctions, the Department of Justice Financial Fraud Enforcement Division said Thursday.”

DS News – “Home Values Declined 1.1 Percent for Fourth Quarter” (2-10-12)

“Zillow forecasts home values will be on the decline through December 2012, but the decrease will be smaller than 2011.”

Inman – “Markets with largest percentage-based price declines in Q4 2011″ (2-10-12)

“The Boise City-Nampa, Idaho, metro area led the nation with a 20.2 percent drop in its single-family existing-home median home price in fourth-quarter 2011 compared to the same quarter in 2010, the National Association of Realtors reported this week.”

Housing Wire – “Fannie defends ending pilot principal reduction program” (2-10-12)

“A small pilot principal reduction program Fannie Mae killed in 2010 was not performing well enough for executives to expand, the mortgage giant claims.”

DS News - “Illinois Introduces Two Initiatives to Tackle Foreclosure Issues” (2-10-12)

“To alleviate issues of foreclosure in one of the hardest hit areas, Illinois Governor Pat Quinn launched two initiatives. One effort will connect homeowners to resources to keep them in their homes, and another will help revitalize areas affected by foreclosed and vacation properties.”

Hard Money Loan Closed

West Covina, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $270,000 on a 7 bedroom, 4 bathroom home appraised for $420,000.

California Real Estate Investor Events:

The Norris Group will be holding their monthly REO Boot Camp, February 14, 2012.

Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

Looking Back:

Existing home sales increased 15.4% in the 4th quarter of 2010, according to the NAR.  Housing affordability for first-time buyers increased to 69% during the final quarter of 2010, said the CAR. RealtyTrac reported foreclosure filings fell 17% year over year.  Kevin Warch resigned from the Federal Reserve Board of Governors.

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.

A settlement has finally been reached in the recent rob-signing scandal between top mortgage servicers and 40 other states.  A recent ruling with MERS was upheld by the 10th Circuit Court of Appeals, allowing them to foreclose on loans that were part of a securitization trust.  DS News reported 30-year fixed mortgage rates continue to be at record lows, while at the same time fixed rates and adjustable-rate mortgages showed signs of improvement.

In The News:

Los Angeles Times – “Mortgage giants to pay $26 billion in foreclosure settlement” (2-9-12)

“Federal and state officials on Thursday announced a landmark $26-billion agreement with the nation’s five largest mortgage servicers to settle investigations involving foreclosure abuses and try to stabilize the housing market.”

Mortgage Bankers Association – “MBA Statement on Mortgage Settlement” (2-9-12)

“Said David H. Stevens, President and CEO of MBA, ‘A final agreement can play an important role stabilizing and providing certainty and confidence to the housing and mortgage markets.  With all the rumors and speculation surrounding these negotiations behind us, it is now imperative that policymakers, lenders, servicers and other stakeholders work together on policies and initiatives that will allow us to get the housing market on the road to recovery’.”

Realty Times – “Home Equity Use No Longer Home Equity Abuse” (2-9-12)

“Record numbers of refinancing homeowners have stopped using their home equity as an ATM machine for withdrawals and instead are making more deposits.”

Housing Wire – “10th Circuit upholds MERS right to foreclosure” (2-9-12)

“The 10th Circuit Court of Appeals upheld a lower court’s ruling, giving the Mortgage Electronic Registration Systems and a trustee overseeing securitized loans standing to foreclose on a mortgage pooled into a securitization trust.”

CNN Money – “Fewer young adults hold jobs than ever before” (2-9-12)

“The share of young adults with jobs has hit its lowest level since the government started keeping records just after World War II.”

Housing Wire – “Wells Fargo to start $5.3 billion foreclosure settlement relief in March” (2-9-12)

“Wells Fargo ($30.63 0%) will begin implementing the mortgage refinancing requirements under the state and federal foreclosure settlement in March.”

San Francisco Chronicle – “Consumer Comfort Index in U.S. Climbs to Highest Level in a Year” (2-9-12)

“Consumer confidence in the U.S. climbed last week to a one-year high, spurred by improving employment opportunities and a rally in the stock market.”

DS News – “Report: 30-year Fixed Rate Unchanged, Other Rates Climb” (2-9-12)

“While the 30-year fixed rate mortgage remained at a record low, data released Thursday by Freddie Mac reported other rates are steadily moving upward.”

Hard Money Loan Closed

Los Angeles, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $125,000 on a 2 bedroom, 1 bathroom home appraised for $209,000.

California Real Estate Investor Events:

The Norris Group posted a new event. The Norris Group will be holding their monthly REO Boot Camp, February 14, 2012.

Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

Looking Back:

The MBA reported mortgage applications decreased 5.5% the previous week. Zillow claimed national home prices dropped 2.6% during the 4th quarter of 2010. Bernanke and Geithner said the economy was still having trouble, but had strong hope for stable growth.

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.

CoreLogic reported a decrease in foreclosures for the whole year in 2011 with 830,000 compared to 1.1 million in 2010.  According to Bloomberg, mishandled mortgages and foreclosures have cost banks as much as $72 billion.  In other news, the Mortgage Bankers Association reported a 7.5% increase in mortgage applications.

In The News:

DS News – “Report Reveals Number of Foreclosures Down From Last Year” (2-8-12)

“A foreclosure report released by CoreLogic Wednesday revealed that the number of homes in foreclosure is decreasing nationwide. The report included monthly data on foreclosures, foreclosure inventory, and 90 plus delinquency rates.”

Bloomberg – “Faulty Loans Top $72 Billion as Banks Seek Deal With Regulators: Mortgages” (2-8-12)

“Costs from faulty mortgages and shoddy foreclosures have topped $72 billion at the biggest U.S. banks as they near a settlement of a 50-state probe into the industry’s practices.”

NAHB – “Home Builders Applaud Menendez Bill to Restore the Flow of Credit for Home Building” (2-8-12)

“The National Association of Home Builders (NAHB) today commended Sen. Robert Menendez (D-N.J.) for introducing the Home Building Lending Improvement Act of 2012 (S. 2078), legislation to help restore the flow of credit for new housing production in order to create jobs, meet rising housing demand and bolster the economic expansion.”

Realty Times – “Mortgage Rates Continue Low Despite Upbeat Economic Data” (2-8-12)

“According to Freerateupdate.com’s weekly survey of wholesale and direct lenders, mortgage rates have remained the same for another week and through another stock market rally. Current 30 year fixed mortgage rates are at 3.500%, 15 year fixed mortgage rates are at 2.875% and 5/1 adjustable mortgage rates are at 2.250%, all available with 0.7 to 1% origination fee to well qualified borrowers.”

Mortgage Bankers Association – “Refinance Activity Increases as Rates Hit Survey Lows” (2-8-12)

“Mortgage applications increased 7.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 3, 201.”

Bloomberg – “Mortgage Bonds Face Eye of Storm as Refinancings Decline: Credit Market” (2-8-12)

Investors in U.S. government-backed mortgage bonds who benefited from a decline in early payoffs by homeowners are bracing for the fallout from a loosening of refinancing rules at Fannie Mae and Freddie Mac.”

Housing Wire – “Consumers take on more debt: Federal Reserve” (2-8-12)

“Consumer credit outstanding rose 9.3% in December to $2.49 trillion, compared to $2.47 trillion in November and $2.46 trillion in October, the Federal Reserve said.”

Bloomberg – “BofA Stalls Refinance Applications as Wells Fargo Is ‘Open for Business’” (2-8-12)

“Bank of America Corp., struggling to handle mortgage refinancing after a U.S. program boosted demand, is telling some customers to wait 90 days before starting an application, said two people with knowledge of the policy.”

Housing Wire – “Multifamily permits outpace construction in 2011“ (2-8-12)

“Multifamily permits surpassed the sector’s construction rate for the last three months of 2011, while single-family construction remained flat.”

Hard Money Loan Closed

Fontana, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $140,000 on a 4 bedroom, 2 bathroom home appraised for $245,000.

California Real Estate Investor Events:

The Norris Group posted a new event. The Norris Group will be holding their monthly REO Boot Camp, February 14, 2012.

Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

Looking Back:

Fannie Mae and the MBA predicted the housing market would begin a rebound that would last until 2013, and Zandi predicted 4% gdp growth through 2012. IAS claimed national home prices fell 0.8% during the 4th quarter of 2010.

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.

According to DS News, the number of homeowners receiving loan modifications from HAMP is about to reach 1 million.  In other news, more than 40 states have joined in on a settlement to help homeowners in foreclosure.  Banks are beginning to help out with people in foreclosure by now offering them money to sell their properties at a lower price than what is owed.

In The News:

DS News – “HAMP Mods Approach 1M Mark” (2-6-12)

“More than 930,000 homeowners have received a permanent modification through the government’s Home Affordable Modification Program (HAMP), saving an estimated $10.5 billion in monthly mortgage payments, according to Treasury.”

Housing Wire – “Mortgage mods in 2011 down 40% from prior year” (2-7-12)

“More than 1 million American homeowners received permanent loan modifications from mortgage servicers in 2011, down 40% from 2010, Hope Now said Tuesday.”

San Francisco Chronicle – “Banks Paying Homeowners a Bonus to Avoid Foreclosures: Mortgages” (2-7-12)

“Banks, accelerating efforts to move troubled mortgages off their books, are offering as much as $35,000 or more in cash to delinquent homeowners to sell their properties for less than they owe.”

CNN Money – “Foreclosure deal has 40 states, but others balk” (2-7-12)

“More than 40 states have signed on to a draft settlement with the nation’s largest banks aimed at helping homeowners struggling with loans bigger than the value of their homes.”

Housing Wire – “Nonbank mortgage lenders required to file fraud reports” (2-7-12)

“Nonbank mortgage lenders will be required to establish anti-money laundering programs and file suspicious activity reports beginning later this year, according to rules finalized by the Financial Crimes Enforcement Network.”

Bloomberg – “States with Highest Foreclosure Rates Among Bank Deal Holdouts” (2-7-12)

California, New York, Nevada, Florida and Massachusetts are among the handful of states that haven’t signed a deal with banks over foreclosure abuses, according to state officials and two people familiar with the talks.”

Housing Wire – “Mass. House Democrats push FHFA on mortgage mods” (2-7-12)

“Three Massachusetts congressmen are asking the Federal Housing Finance Agency to reconsider options in loan modifications, saying the regulator hasn’t done enough to help homeowners.”

NAHB – “Builder Confidence for the 55+ Housing Market Ends Fourth Quarter on an Upswing” (2-7-12)

“Builder confidence in the 55+ housing market for single-family homes rose four points to 18 compared to the same period a year ago, according to the latest National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI) released today.”

CNN Money – “Government expects lending fund to turn taxpayers a profit” (2-7-12)

“An Obama administration lending program set up to funnel cash to small banks was expected to cost taxpayers $1.3 billion. Instead, it will turn a profit of $80 million.”

Housing Wire – “Prepayments on Fannie and Freddie MBS decline” (2-7-12)

“Prepayments on Fannie Mae and Freddie Mac mortgage-backed securities slowed in December and January, suggesting HARP 2.0 has yet to stimulate mass-refinancing activity, analysts said Tuesday.”

Hard Money Loan Closed

San Diego, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $90,000 on a 2 bedroom, 2 bathroom home appraised for $160,000.

California Real Estate Investor Events:

The Norris Group posted a new event.  The Norris Group will be holding their monthly REO Boot Camp, February 14, 2012.

Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

Looking Back:

The MBA reported $110 billion in commercial and multifamily mortgages were originated in 2010. 36,500 mortgages were modified through government and proprietary programs in December 2010, according to Fitch Ratings. Altos Research announced plans to release a new, forward valuation model for real estate. S&P claimed 80% of the loan modifications that took place over the previous 3 years defaulted again within 2 years.

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.

Mortgage rates for 30 year fixed U.S. loans are at their lowest on record at 3.87%.  In other news, unemployment claims also decreased last week as did claims for unemployment insurance.  A bill was introduced in the Senate yesterday that would change the way employees at Fannie Mae and Freddie Mac will be paid.

In The News:

Housing Wire – “Senate joins House in effort to cut pay at Fannie Mae, Freddie Mac” (2-1-12)

“A Senate bill introduced Wednesday would place employees at Fannie Mae and Freddie Mac under a federal pay scale, similar to legislation already in the works in the House.”

Inman – “Obama administration details refinance pan for underwater borrowers” (2-1-12)

“Last week, in his State of the Union address, President Obama introduced a proposal to help millions of homeowners, who are underwater on their mortgages, refinance their loans at current low rates. Today, the administration released details of the plan.”

CNN Money – “Bernanke: Fed will protect U.S. economy from Europe” (2-2-12)

“The recovery remains “frustrating slow” in the United States, and now Europe’s debt crisis is posing additional challenges, Federal Reserve Chairman Ben Bernanke told Congress Thursday.”

Bloomberg – “Mortgage Rates for 30-Year U.S. Fixed Loans Decline to a Record-Low of 3.87%” (2-2-12)

Rates for 30-year U.S. mortgages declined to the lowest level on record after the Obama administration announced measures to make it easier for homeowners to reduce their monthly payments by refinancing.”

Housing Wire – “Jobless claims decline, lower than most estimates” (2-2-12)

“The number of Americans filing initial jobless claims declined about 3% last week, coming in lower than most analysts’ estimates and staying below 400,000.”

San Francisco Chronicle – “BofA Tumbles to 5.6% Share of Mortgages as Wells Fargo Dominates” (2-2-12)

“Bank of America Corp. lost about three-quarters of its market share in U.S. home mortgages since 2007 as the firm grappled with defective loans, while Wells Fargo & Co.’s presence almost doubled, FBR Capital Markets said.”

DS News – “Claims for Unemployment Insurance Improve as January Ends” (2-2-12)

“First time claims for unemployment insurance fell 12,000 for the week ended January 28 to 367,000, reversing half of the increase of the previous week, the Department of Labor reported Thursday.”

Bloomberg – “Obama Uses Housing Crisis as Foil to Romney’s ‘Hit-Bottom’ Strategy” (2-2-12)

“The White House hopes to help millions of homeowners lower their monthly mortgage bill with a $5 billion to $10 billion plan to set up a streamlined refinancing program for people who are current on their payments.”

Housing Wire – “PMI Group latest mortgage insurer to give Fannie Mae short-sale authority” (2-2-12)

“Fannie Mae mortgage servicers can complete short sales and deeds in lieu of foreclosure without getting separate approval from the now bankrupt mortgage insurer The PMI Group, a change that’s expected to further reduce barriers to short sales.”

DS News – “Real Estate Professionals Feeling Brunt of Recession” (2-2-12)

“The effects of the housing crisis are widespread, but nowhere do they hit home more than in the real estate community.  Eighty-eight percent of real estate professionals in a recent survey said they have lost money since 2008 or are living off significantly less income. Many are dipping into savings to make ends meet.”

Realtor Magazine – “Rural Refinance Pilot Program Announced” (2-2-12)

“The USDA is launching the Single Family Housing Guaranteed Rural Refinance Pilot Program, which is designed to help rural home owners refinance their mortgages in order to reduce monthly payments.”

Hard Money Loan Closed

San Diego, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $90,000 on a 2 bedroom, 2 bathroom home appraised for $160,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 tomorrow, February 4, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

Looking Back:

Mortgage application volume increased 11.3% from the previous week, according to the MBA. Fannie Mae and Freddie Mac were raising risk fees they charged lenders on loans they bought for resale to investors. HOPE NOW reported 1.76 million homeowners received a mortgage modification in 2010. Statistics from DBRS showed 50 percent of loan modifications resulted in re-default.

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.

CNN Money reported the neighborhoods hit hardest by foreclosures are those in cul-de-sacs and tree lined streets as well as neighborhoods with modern homes.  Moody’s Investor Services reported a decrease in loan modifications.   Banks and other companies are beginning to move away from using FICO scores to determine a borrower’s credit worthiness and are instead moving toward using mathematical algorithms.

In The News:

Bloomberg – “Programmers Size Up Bank Borrowers With Algorithms Rather Than FICO Scores” (1-22-12)

“For more than 40 years, banks have counted on FICO scores to determine the credit worthiness of American consumers. Now a handful of entrepreneurs in California say it’s time for a smarter way to size up borrowers.  Los Angeles-based ZestCash Inc., along with San Francisco startups BillFloat Inc. and LendingClub Corp., are hiring computer programmers to write software that can better identify candidates for loans — including people with low credit scores. The companies, backed by venture money, also aim to provide lower fees and interest rates than banks.”

Housing Wire - “FHFA: Principal reduction would cost Fannie, Freddie $100 billion” (1-23-12)

“A massive principal reduction program applied to underwater loans held by Fannie Mae and Freddie Mac would cost the mortgage giants more than $100 billion, according to an analysis released by the Federal Housing Finance Agency Monday.”

DS News – “Loan Modifications Are on the Decline: Moody’s” (1-23-12)

“As robo-signing reviews reach completion, servicers are beginning to work through some of their foreclosure backlogs, according to a third-quarter report from Moody’s Investors Service.”

Realty Times - “Real Estate Outlook: Housing at Forefront of Concerns” (1-23-12)

“As the race for the 2012 Presidential Election gets rolling, a new survey from the National Association of Home Builders (NAHB) shows what is on voters’ minds.  Topping the list of concerns for voters is the importance of homeownership and the ease of obtaining it.”

Housing Wire - “Investors buying with cash pressure home prices” (1-23-12)

“Investors are gobbling up residential real estate with cash, pushing national home prices lower, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.”

FINS - “Wall Street Chiefs See Bonuses Lowered” (1-23-12)

“Wall Street’s pay crunch is squeezing some wallets harder than others.  J.P. Morgan Chase & Co. disclosed Friday that Chief Executive James Dimon received a 2011 stock bonus valued by the company at $17 million. That is the same as his 2010 award, despite a record profit last year at the New York financial-services company.”

Inman - “Open-house robbery puts focus on agent safety” (1-23-12)

“A recent gunpoint robbery of a homebuyer and a Realtor at an open house in Los Angeles County, Calif., compelled the Pacific West Association of Realtors (PWAR) to issue a warning to their members to be careful at open houses.”

Bloomberg – “BofA Targets Up to $3 Billion in Additional Cuts” (1-23-12)

“Bank of America Corp., the second-biggest U.S. lender by assets, may reduce annual costs by as much as an additional $3 billion in the next stage of Chief Executive Officer Brian T. Moynihan’s efficiency plan.”

Housing Wire - “Chase, Wells slash foreclosure timelines but REO lingers” (1-23-12)

“JPMorgan Chase (JPM: 37.66 +0.80%) and Wells Fargo (WFC: 30.92 +1.24%) cut their foreclosure timelines by as much as 100 days for some of the worst mortgages handled in the third quarter, according to a report from Moody’s Investors Service.”

DS News - “State AGs Reviewing Settlement Draft” (1-23-12)

“After HUD Secretary Shaun Donovan last week announced that the state attorneys general settlement with the nation’s largest banks is just weeks away – with a spokesperson for Iowa Attorney General Tom Miller’s office corroborating the claim – news today is a settlement draft is now in the hands of the state attorneys general for review.”

CNN Money - “Foreclosures: America’s hardest hit neighborhoods” (1-23-12)

“The housing collapse has dramatically changed the nation’s foreclosure landscape.  Neighborhoods boasting modern homes, cul-de-sacs and tree-lined streets in and around Western cities now dominate the list of the top 100 U.S. zip codes hit hardest by foreclosures and claim and comprise all of the top 10 spots, according to data generated for CNNMoney by RealtyTrac.”

Hard Money Loan Closed

Wilmington, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $190,000 on a 3 bedroom, 3 bathroom home appraised for $315,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Investors Workshops and will be interviewing Shawn Watkins on January 25, 2012.

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 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.

Sources:
30-year, fixed-rate mortgage hits new low
Mortgage Applications Increase in Latest MBA Weekly Survey
Builder Confidence Rises Fourth Consecutive Time in January
California December Home Sales
Vacant Foreclosures Saddle Local Communities With High Costs
Vacant Properties: Growing Number Increases Communities’ Costs and Challenges
Judge refuses to toss CalPERS suit against Moody’s, S&P
Fannie, Freddie Face Pay Cuts
Lower Pay Coming for Fannie, Freddie CEOs
Democrats push to subpoena FHFA over principal reductions
One million homeowners may get mortgage writedowns: U.S.

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big news of the week.  In one big news story,  home sales increased in December 5% accroding to the National Association of Realtors.  In other news, the Lender Processing Services reported yesterday that both the rates of foreclosure and delinquencies are down from last year.  For mortgage-backed securities, the delinquncy rate remained above 9% for the whole of 2011.

In The News:

DS News – “Delinquency and Foreclosure Rates Down From a Year Ago: LPS” (1-19-12)

“Lender Processing Services (LPS) has provided the media with a sneak peek at the results of its mortgage performance data through 2011.”

Bloomberg - “U.S. Home Sales Rise 5% in December” (1-20-12)

“Sales (ETSLTOTL) of previously owned U.S. homes rose for a third month in December to the highest level since January 2011, a sign the housing market ended last year with momentumltors.”

Housing Wire – “Fitch Ratings downgrades 154 classes of Alt-A, subprime” (1-20-12)

“Fitch Ratings downgraded the ratings of 154 loan classes packaged within 52 U.S. Alt-A and subprime residential mortgage-backed securities deals.”

San Francisco Chronicle – “California ill-served by redevelopment agencies” (1-20-12)

“California’s real estate market  is in bad shape. New construction costs are high; development is slow and the  permitting process endless.  All too often, urban planners think that fresh government subsidies can  stimulate the development that heavy regulation throttles. But empty state and  local treasuries have killed off that easy out.”

Realty Times - “30-year Fixed-rate Mortgage Averages 3.88 Percent” (1-20-12)

“In Freddie Mac’s results of its Primary Mortgage Market Survey® the average mortgage rates changing little amid mixed economic data. Regardless, the 30-year fixed-rate mortgage edged down slightly to 3.88 percent to a new all-time record low marking the seventh consecutive week below 4.00 percent.”

Housing Wire – “Sterne Agee lowers estimates for BofA earnings on legacy mortgage issues” (1-20-12)

“Sterne Agee lowered estimates for Bank of America’s (BAC: 6.915 -0.65%) 2012 earnings by 25%, as legal costs continue to mount for the banking giant amid increasing uncertainty in capital markets.”

Wall Street Journal - “Homeowners Stop Waiting to Spruce Up” (1-20-12)

“Americans are stepping up spending on home improvements for the first time in years, giving a small lift to the beleaguered construction sector.  Economists forecast that spending by homeowners and landlords on everything from minor sprucing up to full-scale remodeling rose modestly in 2011.”

Housing Wire – “Moody’s: CMBS delinquency rate higher than 9% through 2011″ (1-20-12)

“The delinquency rate of loans in commercial mortgage-backed securities bounced higher in December and remained above 9% all year.”

Inman - “Tug of war over mortgage rates” (1-20-12)

“The Federal Reserve may again exercise its power to drive down  mortgage rates in order to stimulate the economy, but any savings for  homebuyers may be at least partially offset by a new law that raises  Fannie Mae and Freddie Mac’s guarantee fees and diverts that money to  the Treasury.”

Hard Money Loan Closed

Chino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $240,000 on a 3 bedroom, 1 bathroom home appraised for $380,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Investors Workshops and will be interviewing Shawn Watkins on January 25, 2012.

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.

Looking Back:

The Commerce Department reported housing starts decreased in December 2010. However, Fannie Mae expected housing starts to triple by 2013, and the nation’s largest home builders announced plans to increase activity by 10%. RealtyTrac claimed foreclosure starts in California decreased 33% in 2010.

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.

Freddie Mac announced 30-year fixed mortgage rates decreased to 3.88, setting a new record low.  Housing starts over 4% decreased last month according to the Commerce Department.  The Lender Processing Services also reported that teh loan-delinquency rate also decreased 7.7% from a year ago, and the rate is now at 8.15%.

In The News:

Los Angeles Times - “California home sales rise in December; median price falls again” (1-18-12)

“Home sales in the Golden State rose slightly in December, boosted by a pickup in the Bay Area and investor activity in Southern California. But with foreclosures and other low-cost homes dominating the market, the median home price for the state ticked down.”

DS News – “Firms Launch $450M Program to Convert REOs Into Rentals” (1-18-12)

“Government officials are in the process of reviewing 4,000-plus recommendations for turning repossessed homes into rental properties in order to trim the REO inventory held by federal housing agencies.”

Housing Wire – “30-year, fixed-rate mortgage hits new low” (1-19-12)

“The 30-year, fixed-rate mortgage fell to 3.88% this past week, hitting a new low and marking its seventh consecutive week below 4%, Freddie Mac said Thursday.”

San Francisco Chronicle - “BofA Swings to Quarterlly Profit as Lender Builds Capital” (1-19-12)

“Bank of America Corp., the second- largest U.S. lender, swung to a fourth-quarter profit as the company sold assets and built capital faster than expected.”

Inman - “Spy some real estate savings: spyRealty” (1-19-12)

“A new discount-brokerage firm, spyRealty, has launched in New York and Massachusetts, offering homebuyers a 2 percent refund off of the purchase price of a home.”

Housing Wire – “Fitch: Principal reductions meaningfully reduce mortgage delinquencies” (1-19-12)

“Principal reductions on mortgage loans meaningfully reduce delinquencies and foreclosures, much more than current proposals, according to Fitch Ratings.”

Bloomberg - “U.S. Housing Starts Drop 4.1%” (1-19-12)

“Builders began work on fewer houses than forecast in December, capping the worst year on record for single-family home construction and signaling recovery in the industry will take time.”

FINS – “BofA Plans More Job Cuts Under ‘New BAC’” (1-19-12)

“Bank of America plans to continue cutting jobs after reporting in its year-end earnings  statement that employment fell by 5,874 in the fourth quarter and 3,836 over the year in 2011.”

CNN Money - “CPI: Inflation remains in check” (1-19-12)

“Inflation overall held steady last month, as declining gas prices balanced out higher prices for other items.  The government’s key measure of inflation, the Consumer Price Index, showed prices were virtually unchanged from November to December. It marked the second month in a row CPI has barely moved.”

Housing Wire – “U.S. loan delinquency rate down 7.7% from last year” (1-19-12)

“The delinquency rate on U.S. mortgages monitored by Lender Processing Services (LPS: 15.00 +3.52%) fell 7.7% year-over-year in December as the delinquency rate hit 8.15%.”

Mortgage Bankers Association - “CampusMBA Extends Partnership with Insurance Advisors to Offer New Live Online Workshops for Commercial/Multifamily Professionals” (1-19-12)

“CampusMBA, the award-winning education division of the Mortgage Bankers Association (MBA), today announced it has extended its partnership with Stamford, Connecticut-based Insurance Advisors LLC. Under the agreement CampusMBA, in conjunction with Insurance Advisors, will continue to offer live online workshops addressing a variety of insurance issues for commercial/multifamily real estate loans.”

Hard Money Loan Closed

Riverside, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $105,000 on a 3 bedroom, 2 bathroom home appraised for $168,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Investors Workshops and will be interviewing Shawn Watkins on January 25, 2012.

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.

Looking Back:

The Commerce Department reported housing starts decreased in December 2010. However, Fannie Mae expected housing starts to triple by 2013, and the nation’s largest home builders announced plans to increase activity by 10%.  RealtyTrac claimed foreclosure starts in California decreased 33% in 2010.

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.

The prices of homes in the U.S. declines last November by 4.3% according to CoreLogic.  On a positive note, the sales of homes, both new and existing, increased for the year according to HUD.  The Mortgage Bankers Association reported a 3.7% decrease in mortgage applications.

In The News:

Housing Wire – “Home prices decline 4.3% in November: CoreLogic” (1-9-12)

“Home prices nationwide fell 4.3% year-over-year in the month of November, according to analytics firm CoreLogic (CLGX: 12.79 +1.35%) in its November Home Price Index.”

Bloomberg - “Countrywide Sued by U.K. Banks ‘Looking for Someone to Blame’ on Mortgage” (1-9-12)

“Suninder Sandha bought his luxury apartment in Coleorton Hall, a 19th century country mansion near Leicester in central England, using a 1.2 million-pound loan ($1.86 million) from Barclays Plc (BARC) in 2005.”

Realty Times - “Real Estate Outlook: Mortgage Applications Down” (1-9-12)

“Mortgage applications took their own vacation this holiday season, falling during the final two week span of the year.  They were down by 3.7 percent from the first half of the month according to the latest release from the Mortgage Bankers Association.”

Housing Wire – “Fed governor calls for new housing regulatory regime” (1-9-12)

“The number of Americans filing initial jobless claims declined last week, coming in lower than analysts’ estimates. The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Dec. 31 decreased to 372,000 from 387,000 the previous week, which was revised upward 6,000.”

NAHB - “List of Improving Housing Markets Nearly Doubles in January” (1-9-12)

“The number of housing markets showing measurable improvement nearly doubled in January with the addition of 40 new metros to the National Association of Home Builders/First American Improving Markets Index (IMI), released today.  The IMI now boasts 76 improving markets, up from 41 in December, with 31 states and the District of Columbia represented by at least one entry.”

Housing Wire - “December employment gains boost CRE demand as firms expand” (1-9-12)

“Jobs growth in 2011 increased full-time office employment by 327,000 jobs, giving the commercial real estate segment a slight boost, according to a new report from Marcus & Millichap Real Estate Services.”

DS News - “Fed: Enforcement Actions, Monetary Penalties Necessary for Servicers” (1-9-12)

“Standing before the Association of American Law Schools in Washington D.C., Sunday, Federal Reserve Governor Sarah Bloom Raskin discussed the importance of enforcement in the mortgage servicing industry and argued that monetary penalties are an important part of that enforcement.”

Bloomberg – “Fannie Rating Faces Cut as Lawmakers Siphon Funds, BofA Says” (1-9-12)

“The odds of credit rating downgrades on the bonds of Fannie Mae (FNMA) and Freddie Mac (FMCC) rose after lawmakers tapped the government-supported mortgage companies to pay for last month’s extension of a payroll tax cut, according to Bank of America Corp.”

Housing Wire – “Home sales rise as prices hit historic lows in December” (1-9-12)

“New and existing-home sales increased year-over-year in December, while home prices continued to plummet, hitting levels of affordability not experienced since 1971, the Obama Administration said Monday.”

Hard Money Loan Closed

Compton, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $110,000 on a 3 bedroom, 1 bathroom home appraised for $218,000.

California Real Estate Investor Events:

The Norris Group posted a new event. The Norris Group will be at the Real Estate Investor Rewind at CVREIA on January 10, 2011.

Bruce Norris will be speaking at the Apartment Owners Association-Discover Wealth Strategies for 2012 Los Angeles on January 12, 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.

In some good news for jobs, the number of unemployment claims decreased last week, while at the same time 325,000 new jobs were added in December for the private sector.  Mortgage rates start the year off at the lowest on record according to Bloomberg.  Vacancy rates for apartments are also at their lowest levels since 2001.

In The News:

Housing Wire - “Private sector adds 325,000 jobs in December” (1-5-12)

“Private sector employment grew by 325,000 jobs in December when compared to the previous month, according to the latest ADP National Employment report.”

CNN Money - “Consumer bureau: Now, it can do something” (1-5-12)

“With President Obama’s recess appointment of a new chief to run the consumer bureau, the agency can flex new powers regulating financial products from non-banks — including student loan providers, debt collectors, payday lenders, and mortgage originators and servicers.”

Wall Street Journal - “Apartment-Vacancy Rate Tumbles to 2001 Level” (1-5-12)

“The nation’s apartment-vacancy rate in the fourth quarter fell to its lowest level since late 2001 as Americans continued to favor renting homes instead of buying them.”

Housing Wire - “Jobless claims drop to 372,000 last week” (1-5-12)

“The number of Americans filing initial jobless claims declined last week, coming in lower than analysts’ estimates.  The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Dec. 31 decreased to 372,000 from 387,000 the previous week, which was revised upward 6,000.”

DS News - “Mortgage Modifications Scams Make Top Ten Scam List for 2011″ (1-5-12)

“Mortgage modification scams made the list of “Top Ten Scams of 2011,” assembled by the Better Business Bureau (BBB) Wednesday.”

Inman - “Top 10 US places with a net influx of movers” (1-5-12)

“Only Washington, D.C., and nine states — primarily in the Southwest and Mid-Atlantic regions — were labeled “inbound” by receiving a net influx (over 55 percent) of Atlas moves in 2011, according to Atlas Van Lines’ 2011 annual migration patterns report, released this month. Atlas has tracked annual Atlas shipment patterns for Canada and the U.S., by state, since 1993.”

Bloomberg - “Mortgage Rates for 30-Year Fixed U.S. Loans Match the Record Low of 3.91%” (1-5-12)

“Mortgage rates (NMCMFUS) for 30-year U.S. loans declined, matching the lowest level on record amid signs that demand for housing may be recovering.”

Bloomberg - “Wells Fargo Faces Scrutiny by Investors on Mortgage Bonds” (1-5-12)

“A bondholder group that won an $8.5 billion settlement (BAC) from Bank of America Corp. (BAC) on securities backed by soured home loans may also seek payments from Wells Fargo & Co. (WFC), the nation’s biggest mortgage lenderion.”

Housing Wire – “Fannie Mae to provide loan-level data on single-family MBS” (1-5-12)

“In a push for increased transparency, Fannie Mae plans to provide loan-level data on single-family mortgage-backed securities to help investors.”

Hard Money Loan Closed

San Bernardino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $80,000 on a 5 bedroom, 2 bathroom home appraised for $147,000.

California Real Estate Investor Events:

The Norris Group posted a new event. The Norris Group will be at the Real Estate Investor Rewind at CVREIA on January 10, 2011.

Bruce Norris will be speaking at the Apartment Owners Association-Discover Wealth Strategies for 2012 Los Angeles on January 12, 2012.

Looking Back:

Altera Real Estate forecasted an increase in interest rates for 2011. Hope Now reported mortgage lenders completed nearly 1.65 million permanent loan modifications in November 2010. President Obama signed the National Credit Union Stabilization Act.

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.