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The Norris Group Real Estate News Roundup 3/12/10

Friday, March 12th, 2010

Today’s News Synopsis:

The FDIC sold $1.8bn of residential mortgage-backed securities. The Federal Reserve bought a total of $10bn worth of mbs. More than 25 percent of the home owners who received trial modifications have been removed from Obama’s program. Approximately 462,000 new unemployment claims were made last week.

In The News:

Housing Wire – “FDIC Details $1.8bn Structured Financing Transaction” (3-12-10)

“The Federal Deposit Insurance Corp. (FDIC) today closed on a sale of notes backed by residential mortgage-backed securities (RMBS) from seven failed bank receiverships. The news of the closing, summarized in an FDIC press release today, marks the first official release of information on $1.8bn of structured notes that roadshowed and priced in recent weeks.”

Housing Wire – “BofA Makes 21,000 HAMP Modifications Permanent” (3-12-10)

“Bank of America (BAC: 16.985 -0.79%) reported 21,000 permanent modifications under the Home Affordable Modification Program (HAMP) through February. The US Treasury Department launched HAMP in March 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. BofA faced industry criticism for reporting 98 permanent modifications through November 2009.”

Housing Wire – “Fed MBS Purchases 98% Complete with Another $10bn” (3-12-10)

“The New York Federal Reserve Bank bought another $10bn of agency mortgage-backed securities (MBS) in the week ending March 10 as the $1.25trn program, now 98% complete, winds down to a close. The Fed bought $29.4bn gross of MBS — $4.4bn Freddie Mac (FRE: 1.2801 -1.53%) MBS, $25bn Fannie Mae (FNM: 1.0701 -2.72%) MBS, and no Ginnie Mae MBS. After reporting $19.4bn of MBS sales through the same week, the Fed’s net purchases came to $10bn, level with last week’s agency MBS buys.”

Bloomberg - “More Than 250,000 Borrowers Dropped From U.S. Modification Plan” (3-12-10)

“More than 250,000 of the 1 million borrowers who have received trial loan modifications through the Obama administration’s chief foreclosure prevention plan have either dropped out or been removed from the program through February, the Treasury Department said.”

Inman - “Credit Starvation Fallout” (3-12-10)

“Overall retail sales have risen 6 percent since the pit one year ago, but are still 6.5 percent below 2008. New unemployment claims are still elevated, running 462,000 last week.”

Inman - “NAR: Don’t rein in FHA” (3-12-10)

“FHA insured nearly 30 percent of purchase loans in 2009, including more than half of mortgages taken out by first-time homeowners, and NAR also wants lawmakers to make temporary increases in FHA loan limits in costly housing markets permanent. But rising claims have eroded FHA’s capital reserves below statutory limits, forcing the program’s administrators to tighten underwriting requirements and raise upfront mortgage insurance premiums.”

Orange County Register – “85,000 O.C. real estate jobs gone” (3-12-10)

“In January, Orange County real estate and finance bosses employed 199,200 workers, 24,600 below 2009 levels and 85,100 less than the recent cycle’s peak, by the state Employment Development Dept.’s freshly revised math.”

Looking Back:

One year ago, the MBA reported that commercial and residential mortgage delinquencies increased during the 4th quarter of 2008. Riverside and San Bernardino County were ranked as the 6th highest foreclosure market. U.S. foreclosures increased by 30 percent in one month. Freddie Mac’s statistics showed that 30-year mortgage rates decreased to 5.03 percent.

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The Norris Group Real Estate News Roundup 2/23/10

Tuesday, February 23rd, 2010

Today’s News Synopsis:

The NAR predicts that the commercial real estate market will not recover until after 2011. In California, single family home sales decreased by 3 percent during January. The Standard & Poor’s index shows that national home prices increased slightly during December. 702 banks made the ‘Problem List’ for the FDIC in 2009.

In The News:

NAR - “No Meaningful Recovery in Commercial Real Estate Before 2011″ (2-23-10)

“Lawrence Yun, NAR chief economist, said commercial real estate almost always lags the economy. ‘Because of the lingering impact from the deep recession over the past two years, vacancy rates will trend higher and many commercial property owners will need to make rent concessions,’ he said.”

CAR - “January sales and price report” (2-23-10)

“Existing, single-family home sales decreased 3 percent in January to a seasonally adjusted rate of 539,040 units on an annualized basis compared with December 2009. The statewide median price of an existing single-family home decreased 6.3 percent in January to $287,440, compared with December 2009. C.A.R.’s Unsold Inventory Index fell to 5.8 months in January, compared with 7.3 months in January 2009.

Los Angeles Times – “Home prices show small gain in December” (2-23-10)

“The Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas increased 0.3% from November on a seasonally adjusted basis, with 14 cities posting gains. Compared with a year earlier, the index was down 3.1% in December, but the year-to-year rate of decline moderated in all 20 cities.”

Housing Wire – “FDIC ‘Problem’ Banks Increased 27% in Q409″ (2-23-10)

“By the end of 2009, 702 banks made the ‘Problem List’ for the Federal Deposit Insurance Corp. (FDIC), a marked increase of 27% from 552 at the end of Q309. Additionally, the total amount of assets of insured institutions increased $137.2bn to $13.7trn in Q409. Bank investments in mortgage-backed securities (MBS) also increased by $44.8bn, overall, to $1.4trn.”

Housing Wire – “Lowe’s Profits Top $200m for Q409″ (2-23-10)

“Lowe’s Companies (LOW: 22.81 -1.13%), the world’s second largest home improvement retailer, reported profits of $205m, or $0.14 per share, for its fiscal fourth quarter ending January 29. The Q409 results are up 26.5% from one year ago, when Q408 net earnings were $162m, or $0.11 per share. For the fiscal year ending January 29, 2010, net earnings were $1.78bn, or $1.21 per share, down 18.8% from one year ago, when North Carolina-based Lowe’s earned $2.195bn. In Q309, Lowe’s reported net earnings of $344m.”

Housing Wire – “11.3m Homeowners Now Underwater: First American” (2-23-10)

“11.3m homeowners now owe more on their mortgages than the value of their home at the end of Q409, with the Sand States taking four of the top five negative equity, or underwater, markets according to research released by First American CoreLogic.”

MGIC - “MGIC to Lower Mortgage Insurance Rates for Good Credit Borrowers” (2-23-10)

“The new rates will be lower for borrowers with a credit score of 720 or greater and higher for borrowers with credit scores between 620 and 679. No change is expected for those with a score between 680 and 719, according to a form 8-K filed today with the Securities Exchange Commission.”

Housing Wire – “Home Depot Posts $342m Q4 Profit” (2-23-10)

“Home improvement retailer Home Depot (HD: 30.75 +1.42%) reported a profit of $342m, or $0.20 per share, for its fiscal year fourth quarter ending January 31. That’s an improvement from last year’s fiscal fourth quarter, when Home Depot lost $54m, or $0.03 per share. But it’s lower than Home Depot’s Q309 net earnings of $689m, or $0.41 per share. Home Depot said its sales performance was driven by gains in kitchen and bath, paint, flooring and plumbing as well as its international businesses.”

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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 2/2/10

Tuesday, February 2nd, 2010

Today’s News Synopsis:

The NAR’s index  shows that pending home sales increased by 1 percent in December. According to the MBA, commercial and multifamily mortgage loan originations increased by 15 percent during the 4th quarter of 2009.  The FHA reports that borrower delinquencies increased by 6.5 percent from the previous year. Fannie Mae is offering a 3.5 percent discount to all people who buy REO properties.

In The News:

NAR - “Pending Home Sales Stabilize, Remain Above Year-Ago Levels” (2-2-10)

“The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in December, increased 1.0 percent to 96.6 from 95.6 in November, and remains 10.9 percent above December 2008 when it was 87.1. In November, the monthly index had fallen by 16.4 percent from surging activity in preceding months.”

Mortgage Bankers Association – “MBA Study: Originations of Commercial and Multifamily Mortgages Increased in Fourth Quarter 2009″ (2-2-10)

“Fourth quarter 2009 commercial and multifamily mortgage loan originations were 12 percent higher than during the same period last year and 15 percent higher than during the third quarter of 2009, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.”

Washington Post – “Rising FHA default rate foreshadows a crush of foreclosures” (2-2-10)

“About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency’s figures show.”

Housing Wire – “First American Offers Appraiser Reviews of BPOs” (2-2-10)

“First American Valuation and Property Solutions – the Dallas-based subsidiary of the First American Corporation (FAF: 30.68 +1.86%) – added appraiser reviews of broker price opinion (BPO) reports to its new property valuation offering. The move to add appraiser reviews allows firms without on-staff appraisers to outsource BPO verification operations – a trend sources say is catching on.”

Housing Wire – “HUD 2011 Budget Drops to $41.6bn on Higher FHA Premiums” (2-2-10)

“The US Department of Housing and Urban Development (HUD) budget proposal for 2011 dipped 5% below the budget in 2010 to $41.6bn after raising annual Federal Housing Administration (FHA) insurance premiums by 50 bps to 2.25% earlier this month.”

Housing Wire – “CMBS Performance Slides Again: Trepp” (2-2-10)

“The rate of 30-plus-day delinquency in commercial mortgage-backed securities (CMBS)reached a new record high of 6.49% in January, according to commercial real estate data provider Trepp.”

Housing Wire - “Fannie Gives 3.5% REO Discount” (2-2-10)

“Fannie Mae (FNM: 1.02 -0.97%) will provide a 3.5% discount to those purchasing a real-estate owned (REO) property listed as part of its HomePath division, according to a company notice.”

Bloomberg - “D.R. Horton Climbs Most in 10 Months on Profit Gain” (2-2-10)

“D.R. Horton Inc., the second-largest U.S. homebuilder by revenue, climbed the most in 10 months after the company reported its first quarterly profit since 2007 on sales and profit margins that exceeded analysts’ estimates.”

Bloomberg - “U.S. Vacancy Rate Increases as Banks Seize More Homes” (2-2-10)

“The homeowner vacancy rate increased to 2.7 percent from 2.6 percent in the third quarter, the U.S. Census Bureau said in a report today. There were 2.09 million empty properties on the market, up from 1.99 million, according to the report.”

Inman - “First-timers are fastest-growing segment” (2-2-10)

“First-time homebuyers not only account for the largest share of home sales in many markets, but represent the fastest-growing segment of home sales in nearly half of those markets, brokers surveyed by Inman News report. Second homes and move-up homes, on the other hand, are the most rapidly shrinking segment of their business, brokers responding to the survey said.”

Looking Back:

One year ago,  a $5 billion increase in mortgage debt investment by foreign banks was noted by Morgan Stanley. San Francisco analysts predicted that condominium prices in the SF area would significantly decrease. Obama exclaimed that he would require banks receiving bailout money to increase lending to borrowers.

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The Norris Group Real Estate News Roundup 1/27/10

Wednesday, January 27th, 2010

Today’s News Synopsis:

According to MDA DataQuick, 84,568 Notices of Default were recorded in California during the 4th quarter of 2009. The MBA’s weekly survey shows that mortgage application volume decreased 10.9 percent from last week. The Commerce Department reports that new home sales decreased by 7.6 percent last month. The Federal Reserve claims it will stick to its plan to end the $1.25 trillion program of mortgage-debt purchases in March.

In The News:

CBIA – “Protect Your Model Homes” (1-27-10)

“Neighbors are the first and strongest line of defense in neighborhood security. If they can put a face to your model home, they will be much more likely to help protect you. Bring them gift baskets, shake hands and be respectful. Let them know that you’d appreciate if they’d call the police if they notice anyone at the model home after dark.”

DQNews – “Another Drop in California Mortgage Defaults” (1-27-10)

“A total of 84,568 Notices of Default (”NODs”) were recorded at county recorder offices during the October-to-December period. That was down 24.3 percent from 111,689 for the prior quarter, and up 12.4 percent from 75,230 in fourth-quarter 2008, according to San Diego-based MDA DataQuick.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (1-27-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 22, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 10.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 10.1 percent compared with the previous week and decreased 19.8 percent compared with the same week one year earlier.”

Housing Wire – “BofA First to Join HAMP Program for Second Liens” (1-27-10)

“Bank of America (BAC: 14.975 +1.39%) signed the first agreement to participate in the second-lien mortgage modification initiative under the Home Affordable Modification Program (HAMP), the bank confirmed Tuesday afternoon.”

Bloomberg – “U.S. May Retool Loan Program for Underwater Borrowers” (1-27-10)

“The changes would be at least the third lease on life for the program, which began in October 2008 during the Bush administration and has so far helped just 96 of the 400,000 homeowners originally targeted.”

Bloomberg – “U.S. Economy: Sales of New Homes Fall, Capping Worst Year Ever” (1-27-10)

“Sales of new homes in the U.S. unexpectedly dropped in December, capping the worst year on record and signaling the government’s tax-credit extension has yet to shore up demand. Purchases declined 7.6 percent to an annual pace of 342,000, marking the fourth decrease in the past five months, the Commerce Department said today in Washington. For all of 2009, sales declined 23 percent to 374,000, the lowest level since records began in 1963.”

Bloomberg – “S&P, Moody’s Win Dismissal of Claims Over Mortgage Securities” (1-27-10)

“Standard & Poor’s and Moody’s Corp. won dismissal of a lawsuit seeking to hold them responsible for defrauding investors who bought about $100 billion of mortgage- backed securities.”

Bloomberg – “Fed May Take Risk MBS Program End Won’t Hurt Housing” (1-27-10)

“The Federal Reserve may take a chance the housing market can stage a comeback without its support by announcing today it will stick to the plan to end a $1.25 trillion program of mortgage-debt purchases in March.”

Looking Back:

One year ago, MDA DataQuick reported that 75,230 default notices had been sent to California homeowners during the 4th quarter of 2008. The S&P Index showed that home prices fell 18.2 percent within two months. C.A.R. reported that Orange County home sales increased by 13.5 percent in one month.

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The Norris Group Real Estate News Roundup 1/25/10

Monday, January 25th, 2010

Today’s News Synopsis:

According to the NAR, existing home sales decreased by 16.7 percent in December. The HVCC repeal bill, named HR 1728, has passed in the House of Representatvies and is waiting approval from Congress. The FDIC took over 5 more failed banks last week. FTN Financial reports that declining home values have had little effect on the nation’s economic recovery.

In The News:

NAR - “December Existing-Home Sales Down but Prices Rise; 2009 Sales Up” (1-25-10)

“Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 16.7 percent to a seasonally adjusted annual rate1 of 5.45 million units in December from 6.54 million in November, but remain 15.0 percent above the 4.74 million-unit level in December 2008.”

Washington Post – “Stakes are high as government plans exit from mortgage markets” (1-25-10)

“Over the past year, these programs have enabled prospective home buyers to get cheap loans, helping those buying and selling property as well as those eager to refinance existing mortgages. If the end of the initiative drives up interest rates, say from 5 percent to 5.5 percent, homeowners could be deterred from refinancing, industry officials say. A sharper increase in rates could make homes too expensive for many buyers, forcing them from the market and causing the recent pickup in home sales to stall.”

Inman - “Bailout’s impact on deficit debated” (1-25-10)

“The cost of subsidizing the operations of Fannie Mae and Freddie Mac should be accounted for in the federal budget as if they were federal agencies, the Congressional Budget Office argues in a new report — an accounting change that would add nearly $400 billion to the growing national deficit. The Obama administration has argued that only cash the Treasury Department pumps directly into Fannie and Freddie — about $95.6 billion since the mortgage guarantors were placed into conservatorship in September 2008 — should be included as budget expenditures.”

Housing Wire - “FHA Cracks Down on 4 Mortgage Lenders” (1-25-10)

“The lenders losing approval are: Strategic Mortgage Corporation, ProMortgage, Americare Investment Group, which does business as Premier Capital Lending and TopDot Mortgage. The MRB suspended FHA approval on Home Mortgage Inc. (HMI) for six months. In addition to losing its FHA approval, TopDot faces action from the Government National Mortgage Association, or Ginnie Mae.”

Housing Wire – “Home Valuation Code of Conduct is Better for Business, AMCs Say” (1-25-10)

“A trade group for the appraisal management company (AMC) industry warned that if proposed legislation repealing the Home Valuation Code of Conduct (HVCC) is passed, it may lead to the same damaging business practices that puts undue pressure put on property appraisers. The specific legislation that catches the ire of the Title/Appraisal Vendor Management Association (TAVMA) is HR 1728 which passed the House of Representatives and is awaiting Senate approval. The financial reform bill includes a provision to repeal the HVCC.”

Housing Wire – “FDIC May Securitize Assets of Failed Banks” (1-25-10)

“There is a large supply of failed bank assets on-hand, with the latest round of five failures on Friday leaving the FDIC with at least $20.1m in total assets for later disposition. The FDIC is said to be diversifying its options for offloading failed banks when no buyer can be found.”

Housing Wire – “Foreclosure and Price Decline is not Fatal to Recovery, Says FTN Financial” (1-25-10)

“Declines in house prices mixed with increases in foreclosures are not showing a hugely negative knock-on impact for the nation’s overall economic recovery, according to a weekly report by FTN Financial, a portfolio manager and analytics provider for the investment and banking industry.”

Bloomberg - “Fannie Mortgage-Bond Spreads Unchanged After Widening Four Days” (1-25-10)

“Yields on Fannie Mae and Freddie Mac mortgage securities were unchanged relative to government notes after widening for four days. The difference between yields on Washington-based Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds and 10- year Treasuries remained at about 0.75 percentage point, after climbing as high as 0.77 percentage point, according to data compiled by Bloomberg. The spread has grown since reaching 0.66 percentage point on Jan. 6, the tightest in more than 17 years.”

Orange County Register – “South coast distressed homes slip, slide” (1-25-10)

“Two weeks ago, Dana Point’s percentage of short sales and foreclosures was 23.3%, which has risen to 24.7% this week, according to a biweekly report by Steven Thomas of Altera Real Estate. San Clemente also saw an increase in distressed properties. Two weeks ago, 30.8 percent of the city’s active home stock was distressed. Now, 32.8% of homes for sale are distressed.”

Orange County Register - “Smallest apartments get biggest rent cuts” (1-25-10)

“The biggest percentage cuts were made in rents for ‘junior one-bedroom’ units — essentially a small one-bedroom or a studio apartment with an alcove or space that can be used as a bedroom. The average rent for those units fell 11.4% to $1,172 a month. Studio apartments, one-bedroom and two-bedroom units had the next biggest percentage cuts, with reductions of just over 7%.”

Looking Back:

One year ago, California’s unemployment rate increased to 9.3 percent. Proposition 13 prevented California from raising property taxes for the budget crisis. Mortgage rates increased by 0.5 percent within a week and a half. The Federal Reserve was expected to keep its rates at a record low.

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The Norris Group Real Estate News Roundup 1/12/10

Tuesday, January 12th, 2010

Today’s News Synopsis:

The Federal Reserve made $46.1 billion last year. The MBA predicts that mortgage originations will decline by 39 percent in 2010. According to Integrated Asset Services, national home prices fell by 0.3 percent in November of 2009. FHA reports that foreclosure starts on mortgages from Fannie Mae and Freddie Mac decreased by 15 percent from the second quarter to the third quarter of 2009.

In The News:

Los Angeles Times – “Fed’s reaction to crisis helps deliver record $46.1-billion profit” (1-12-10)

“The Federal Reserve today announced it made a record $46.1-billion profit last year, countering concerns that the central bank has put too much taxpayer money at risk in attempts to stabilize the financial industry.”

Housing Wire – “MBA Expects Mortgage Originations to Fall 40% in 2010″ (1-12-10)

“The mortgage finance industry will likely see a continued slow-down in 2010 as unemployment remains high and home sales slide, the Mortgage Bankers Association (MBA) said Tuesday at a media briefing over the state of the real estate industry. The MBA projected total mortgage origination on residential one- to four-family properties is likely to plummet to $1.28trn in all of 2010, from $2.11trn in all of 2009. The projection marks a 39% decline in total mortgage origination in 2010.”

Housing Wire – “MetLife to Provide Reverse Mortgage Program for ABA Banks” (1-12-10)

“The American Bankers Association (ABA) partnered with MetLife Home Loans to provide member banks a reverse mortgage program. Banks provide reverse mortgages to let homeowners convert their home into cash and can allow older borrowers to supplement social security, meet medical expenses and make home improvements.”

Housing Wire – “Tax Refund Gives KB Homes $100m Q4 Profit” (1-12-10)

“A tax return from profits earned during the housing bubble put KB Home (KBH: 15.72 -4.03%) in positive net profit territory in its fiscal year Q409 that ended Nov. 30. Excluding a $191.7m tax refund, KB Home would have lost $91m in the quarter, but instead posted a $100.7m, or $1.31 per share, net profit. With or without the tax refund, the quarter’s results are better than the $307.3m loss in Q408.”

Housing Wire – “IAS Price Index Dips on Declines in Northeast, Midwest” (1-12-10)

“The Integrated Asset Services (IAS) index of national house shows prices fell 0.3% in November, the collateral valuation and management services firm said. That’s better than the 0.5% decline in prices the index experienced in October and the 0.6% decrease in September.”

Housing Wire – “Sellers Cut Listing Prices on 21% of Homes: Trulia” (1-12-10)

“As of Jan. 1, 2010, sellers cut listing prices on 21% of homes currently on the US market, according to the real estate site, Trulia.com.”

Bloomberg - “U.S. Subpoenas 15 FHA Lenders With High Mortgage Defaults” (1-12-10)

“The U.S. Housing and Urban Development Department said it subpoenaed 15 mortgage companies today to seek out possible fraud in an effort to stem losses on loans insured by the Federal Housing Administration. HUD officials, who oversee the FHA mortgage insurance program, said they haven’t haven’t found any evidence of wrongdoing at the lenders, and were singling out those with the highest default rates.”

Bloomberg - “Life Insurers to Sidestep CMBS Losses, Barclays Says” (1-12-10)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., will sidestep losses on investments tied to commercial mortgages, said Eric Berg, an analyst with Barclays Plc. ”

Bloomberg - “PMI Drops After Goldman Sachs Sell Recommendation” (1-12-10)

“PMI Group Inc., the third-largest U.S. mortgage insurer, fell the most in five months after a Goldman Sachs Group Inc. analyst said he expects more losses as foreclosures increase.”

Inman - “More loans going bad, but more get help” (1-12-10)

“More homeowners fell behind on their payments during the third quarter of 2009, but fewer were funneled into the foreclosure process as loan servicers engaged in more loan workouts, modifications and short sales, according to a new report. Foreclosure starts on loans guaranteed by Fannie Mae and Freddie Mac fell 15 percent from the second quarter to the third quarter, the Federal Housing Finance Agency said in its quarterly Foreclosure Prevention and Refinance Report.”

Orange County Register – “Housing market warming up in south coast?” (1-12-10)

“In a typically slow quarter for real estate, all three south coast cities saw their expected market time speed up a bit, according to a biweekly report by Steven Thomas of Altera Real Estate. Two weeks ago, it would have taken an expected 6.86 months to sell all of Dana Point’s active home stock, which has sped up slightly to an expected 5.16 months.”

Looking Back:

One year ago, some economists estimated that the Modesto, Stockton, Bakersfield, Riverside and Sacramento housing markets would take the longest to recover. President Bush requested the remaining $350 billion of the financial rescue, and handed his economic authority to Barack Obama. Distressed home sales in Orange County decreased by 7.2 percent.

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The Norris Group Real Estate News Roundup 12/22/09

Tuesday, December 22nd, 2009

Today’s News Synopsis:

Research from the Office of Thrift Supervision and the Office of the Comptroller of the Currency show that the number of U.S. homes in foreclosure have passed the 1-million mark. The NAR reports that existing homes sales increased by 7.4 percent in November. According to IHS Global Insight, U.S. home prices increased by 0.2 percent during the 3rd quarter of 2009. Barclay’s predicts that the unemployment rate will reduce to 9.1 percent by the end of 2010.

In The News:

Los Angeles Times – “More prime mortgages default in 3rd quarter” (12-22-09)

“For the first quarter ever, the number of homes in foreclosure with mortgages serviced by U.S. national banks and savings and loans topped the 1-million mark, according to figures released Monday by the Office of Thrift Supervision and the Office of the Comptroller of the Currency. The percentage of prime borrowers whose loans were 60 or more days past due doubled from the July-to-September period a year earlier. And more than half of all homeowners whose payments had been lowered through modification plans defaulted again.”

NAR - “Another Big Gain in Existing-Home Sales as Buyers Respond to Tax Credit” (12-22-09)

“Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate1 of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.”

Housing Wire – “Treasury Spends $4.1bn on Affordable Housing Programs” (12-22-09)

“The amount of American Recovery and Reinvestment Act funds distributed to state agencies to promote affordable housing is running at nearly $4.1bn after the latest round of payouts, the Treasury Department said.”

Press Enterprise – “Local, national retail hiring still sluggish” (12-22-09)

“According to an analysis of Labor Department data by the Chicago-based outplacement firm Challenger, Gray & Christmas, the U.S. retail sector grew by a net 321,300 jobs in November, for an increase of 37 percent from November 2008. In the Inland region, the California Employment Development Department reported last week, the net gain of 550 retail jobs in November marked a 3.6 percent bump from the prior month, but the total retail workforce of 157,800 was actually down 5.5 percent from a year ago.”

Housing Wire – “Housing Prices End Two-Year Skid, says IHS Global Insight” (12-22-09)

“The two-year slide in US housing prices ended in Q309 and increased 0.2% over the previous quarter, according to a quarterly report form IHS Global Insight, a provider of economic and financial analysis. Although prices increased on a national average, 161 of the top 330 metropolitan areas had declines in prices, but it’s still an improvement from Q408 when prices dropped in 317 metro areas.”

Housing Wire – “FHFA Home Price Index Up 0.6% in October” (12-22-09)

“US housing prices increased 0.6% on a seasonally adjusted basis from September to October, according to the Federal Housing Finance Agency’s (FHFA) monthly house price index. The increase comes after the FHFA adjusted the index’s August to September reading from no change to a 0.4% decline. For the 12 months ending in October, prices fell 1.9%. The index is 10.8% below its April 2007 peak.”

Housing Wire – “BarCap: Commercial Real Estate Demand to Start Back This Summer” (12-22-09)

“according to Barclay’s report on the 2010 outlook for commercial mortgage-backed securities (CMBS), the labor market is showing encouraging signs in recent months, which is the best indication of growing demand in commercial space. Barclay’s analysts forecast “sustained positive job growth” beginning in Q110 and an addition of 2.3m jobs by the end of the year. This translates to a 9.1% unemployment rate at the end of 2010, which is not yet healthy but a sign of recovery.”

Housing Wire – “Securitization Systematic Risk to Lessen in 2010, Barclays Says” (12-22-09)

“Due to the ‘herculean’ and ‘unprecedented’ efforts of myriad Fed bailouts, Barclays Capital is reporting that, going into the New Year, the systemic risk posed by the securitized markets will be much lower, although the agency mortgage-backed securities (MBS) market remains a concern.”

Bloomberg - “Mortgage-Bond Yields Jump to 4-Month High, Boosting Loan Rates” (12-22-09)

“Yields on Fannie Mae and Freddie Mac mortgage securities climbed to the highest in four months, signaling interest rates on new home loans may extend a rebound from record lows this month and blunt a housing recovery.”

Looking Back:

One year ago, policy makers were considering the abolition of Fannie Mae and Freddie Mac. Foresight Analytics estimated that $530 billion in commercial mortgages were due for refinancing over the next three years. CIRB reported that the number of construction permits being pulled increased by 8 percent from the previous month. The pace of existing home sales decreased by 10.6 percent from 2007 to 2008.

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The Norris Group Real Estate News Roundup 12/21/09

Monday, December 21st, 2009

Today’s News Synopsis:

PMI Insurance Group predicts that 2010 will produce a moderate increase in economic production. According to John Burns Real Estate Consulting, real estate investor activity now exceeds 2005 levels. Moody’s reports that commercial real estate values have decreased by 36 percent from last year. A total of 140 banks have been seized this year.

In The News:

Tennessean - “Glut of shadow properties could hurt housing prices” (12-20-09)

“A supply of 1.7 million homes headed for sale because of foreclosure or delinquency looms over the U.S. housing market, which could dampen progress toward recovery should the Obama administration fail in its efforts to aid struggling homeowners, researchers said.”

Dr. Housing Bubble – “Southern California and the MLS Myth: Why the MLS does not Provide an Accurate Picture of Housing Inventory. Shadow Inventory, Foreclosures, and Fantasy Housing Numbers.” (12-20-09)

“In Southern California last month 20 percent of all buyers went with all cash. Each MLS is geared to local markets but again many argue that the MLS forces membership into the real estate circles.”

San Francisco Chronicle – “Commercial real estate on shaky foundation” (12-20-09)

“while most commercial real estate experts agree that in 2010 there will more loan defaults, scores more bank closures and limited construction lending, many observers do not believe that commercial mortgage defaults will derail the recovery.”

Housing Wire – “Mortgage Insurer Expects Housing Growth in 2010″ (12-21-09)

“PMI Mortgage Insurance Co., of PMI Group (PMI: 2.00 0.00%), does not expect an additional downturn in the US economy in the New Year, and even projects a ‘moderate’ pace of growth in 2010.”

Housing Wire – “Monday Morning Cup of Coffee” (12-21-09)

“According to John Burns Real Estate Consulting, existing home sales volumes are off 30% from the peak and have returned to 1998 levels. Perhaps even more worrying, the research states that existing sales volumes are driven by government initiatives, such as the expanded tax credit, aggressive FHA lending, Freddie and Fannie bailout, and Fed mortgage rate intervention. Additionally, investor activity now exceeds 2005 levels as a percent of total activity.”

Bloomberg - “U.S. Commercial Property Falls to Lowest in 7 Years” (12-21-09)

“Commercial property values in the U.S. declined in October to the lowest level in more than seven years as unemployment reduced demand for apartments, offices and retail space. The Moody’s/REAL Commercial Property Price Indices fell 1.5 percent in October from September to the lowest since August 2002. Prices were down 36 percent from a year ago and are 44 percent below the peak in October 2007, Moody’s Investors Service Inc. said in a statement. ”

DSNews - “Seven New Closures Push 2009 Failures to 140″ (12-21-09)

“The nation’s economic crisis has certainly left its mark on the banking sector this year. These latest institutional seizures push the failed bank tally for 2009 to 140 – an exorbitant increase compared to 25 in 2008, only three in 2007, and none in 2006 and 2005.”

Housing Wire – “More Servicers Bring HAMP List to 99″ (12-21-09)

“The US Treasury Department added 11 new servicers to the Home Affordable Modification Program (HAMP), pushing the total number of participants to 99, according to the latest Troubled Asset Relief Program (TARP) transaction report. Under HAMP, the Treasury allocates capped incentives to servicers for the modification of loans on the verge of foreclosure. Currently, the 99 servicers could receive a potential $27.4bn in capped incentives, but the Treasury plans to spend $50bn on the program.”

Inman - “Short sales show steady growth” (12-21-09)

“National bank and thrift servicers completed 22 percent more short sales during the quarter ending Sept. 30 than during the previous three months, and 127 percent more than the same quarter a year ago, federal bank regulators said today.”

Looking Back:

One year ago, California real estate sales decreased by 24 percent within one month. Governor Schwarzenegger rejected an $18 billion proposal for California expense cuts and tax increases. Barney Frank announced plans to release $350 billion from the bank-rescue package. The Federal Reserve bought $308.5 billion in commercial paper and lent $631.8 billion under eight credit programs.

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The Norris Group Real Estate News Roundup 12/18/09

Friday, December 18th, 2009

Today’s News Synopsis:

DQNews reports that a total of 35,860 new and resale houses and condos were sold in California during November. The median selling price for Bay Area homes fell by 0.8 percent last month. According to First American Corelogic, approximately 1.7 million homes are in shadow inventory. Deutsche Bank expects that U.S. home prices will decrease another 10 percent.

In The News:

DQNews - “California November Home Sales” (12-17-09)

“An estimated 35,860 new and resale houses and condos were sold statewide last month. That was down 13.1 percent from 41,280 in October, and up 11.5 percent from 32,163 for November 2008. A decline in sales from October to November is normal for the season. California sales for the month of November have varied from a low of 25,578 in 2007 to a peak of 60,326 in 2004, while the November average is 40,377. MDA DataQuick’s statistics go back to 1988.”

DQNews - “Bay Area home sales and median price top last year again” (12-18-09)

“The median price paid for all new and resale houses and condos that closed escrow in the nine-county Bay Area last month was $387,000. That was down 0.8 percent from $390,000 in October but up 10.6 percent from $350,000 in November 2008, according to MDA DataQuick of San Diego.”

NAR - “Four out of 10 Recent Buyers Relied on FHA Loans, Says NAR” (12-18-09)

“According to the most recent Realtors® Confidence Index, 39 percent of recent buyers purchased a home with a Federal Housing Administration-insured loan. Realtors® who took part in the November survey also reported that the number of first-time home buyers continued to climb to 51 percent.”

Housing Wire – “Moody’s See Decelerating Jumbo Declines Around Falling House Prices” (12-18-09)

“During a revision of Moody’s Investors Service loss projections for U.S. prime jumbo residential mortgage backed securities (RMBS) issued between 2005 and 2008, the credit rating agency finds that the growth in new delinquency levels beyond the Q210 is expected to decline. On average, Moody’s is now projecting cumulative losses of 3.8% for 2005 securitizations, 8.0% for 2006 securitizations, 10.9% for 2007 securitizations and 12.3% for 2008 securitizations, reported as a percentage of original balance.”

Housing Wire – “Months Later, Thornburg Servicing Portfolio to Sell” (12-18-09)

“Similarly, now-bankrupt Thornburg Mortgage left behind significantly more valuable assets months after the credit crisis took its toll on the ultra-prime jumbo mortgage lender. One of these assets — a $11.1bn of residential loan servicing rights portfolio — is going up for sale by Interactive Mortgage Advisers (IMA) as part of the sale of assets under Thornburg’s bankruptcy.”

Housing Wire – “Deutsche Sees House Prices Falling Another 10 Percent” (12-18-09)

“Today, Deutsche Bank researchers say these predictions will likely become a reality, with the total peak-to-trough decline of US home prices hitting nearly 40%. In the current outlook, they say home prices will drop a further 10 to 12% from current levels.”

Housing Wire – “TenantAccess Helps Handle Shadow Inventory” (12-18-09)

“After FirstAmerican Corelogic found 1.7m homes in the shadow inventory, TenantAccess will offer a range of programs to manage this backlog of residential foreclosures.”

Orange County Register – “Is Irvine still a buyer’s market?” (12-18-09)

“While the inventory of resale homes continues to dwindle in Irvine and multiple offers above asking price aren’t rare, America’s Safest City remains a buyer’s market, according to Altos Research’s Market Action Index.”

Orange County Register – “South O.C.’s $1 million-plus short sales” (12-18-09)

“Here’s how it breaks down – There are currently a total of 32 homes in south coast cities that are short sales priced at $1 million or higher: 10 in Laguna Beach, 11 in Dana Point and 12 in San Clemente. These are situations where the homeowner is taking a loss on their home by selling it for less than they owe on the loan. However, there are a total of 198 foreclosures in these cities – 27 in Laguna Beach, 56 in Dana Point and 115 in San Clemente.”

Looking Back:

One year ago, median home prices in the Bay Area sunk to an 8-year low. The FDIC reported that bank reserves were falling behind on the number of bad loans they held. The Federal Reserve bought $2.4 billion in debt from Fannie Mae and Freddie Mac.

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