The NAR said existing home sales rose 2.7% in January. The FHA’s REO inventory has increased 47% year over year.  A California judge upheld the rights of the Mortgage Electronic Registration Systems to the trust deed, granting MERS the right to foreclose. A Federal Reserve economist predicts the government will soon provide an alternative to the national homebuyer tax credit

In The News:

NAR - “Existing-Home Sales Rise Again in January” (2-23-11)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010.”

Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (2-23-11)

“mortgage loan application volume, increased 13.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 14.8 percent compared with the previous week. The Refinance Index increased 17.8 percent from the previous week. The seasonally adjusted Purchase Index increased 5.1 percent from one week earlier.”

Inman - “New CoreLogic market reports incorporate MLS data” (2-23-11)

“CoreLogic’s Listing and Market Activity Report — the first in a series of new products the company is developing to generate revenue from the data it receives from cooperating MLSs — provides key information including updated listings, comparable sales, property valuations, days on market, price trends and inventory.”

Housing Wire – “FHA REO inventory up 47% from one year ago” (2-23-11)

“The Federal Housing Administration held 60,739 properties repossessed through foreclosure on its books as of December 2010, up 47% from the year before.”

Housing Wire – “Freddie Mac finalizing major revamp of mortgage servicers” (2-23-11)

“Freddie Mac is in the final stages of changing how its 1,400 mortgage servicing companies handle its loans, and will implement a new scorecard measuring their performance. Furthermore, the government-sponsored enterprise is announcing that it will case review the way servicers treat delinquent borrowers, in order to ensure quality control.”

Housing Wire – “Bank failures hit 18-year high in 2010″ (2-23-11)

“The Federal Deposit Insurance Corp. held 884 financial institutions on its ‘Problem List’ as of the end of 2010, and the 157 insured banks that failed was the highest amount since 1992.”

Housing Wire – “MERS rights upheld in largest foreclosure state” (2-23-11)

“An appellate judge in California last week upheld the rights of the Mortgage Electronic Registration Systems to the deed of trust, giving MERS the right to foreclose, according to court documents.”

Housing Wire – “Fannie Mae to start grading mortgage servicers” (2-23-11)

“Fannie Mae will launch a new program for evaluating the performance of its mortgage servicers over the next 30 days. The Servicer Total Achievement and Rewards (STAR) program will gauge how servicers support the housing recovery and keep homeowners out of foreclosure.”

Housing Wire – “Fed economist pushes homebuyer tax credit alternative” (2-23-11)

“A Federal Reserve Bank of Cleveland research economist predicted Wednesday that the government would soon provide an alternative to the national homebuyer tax credit that expired in April.”

Bloomberg - “Existing Home Sales in U.S. Probably Fell in January From Seven-Month High” (2-22-11)

“Sales of U.S. previously owned homes probably dropped in January from a seven-month high, showing any recovery will take time to develop, economists said before a report today. Purchases decreased 1.1 percent from December to a 5.22 million annual rate, according to the median forecast of 73 economists surveyed by Bloomberg News.”

Looking Back:

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.

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 Commerce Department said home construction rose 14.5% in January. Mortgage delinquencies decreased 6.41% in the 4th quarter, according to TransUnion. The FOMC voted to keep rates between 0 to 0.25%.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (2-16-11)

“The Refinance Index decreased 11.4 percent from the previous week and is the lowest Refinance Index recorded in the survey since the week ending July 3, 2009. The seasonally adjusted Purchase Index decreased 5.9 percent from one week earlier. The unadjusted Purchase Index decreased 0.9 percent compared with the previous week and was 18.2 percent lower than the same week one year ago”

CNN - “Home construction rises in January” (2-16-11)

“Housing starts, the number of new homes being built, rose 14.6% to an annual rate of 596,000 in January, up from 520,000 in December, the Commerce Department said.”

Mercury News – “Silicon Valley real estate: Foreclosure lull ends in Santa Clara County” (2-16-11)

“In Santa Clara County in January, 398 home were either repossessed or sold by lenders to third-party buyers, a nearly 70 percent jump from the month before, according to real estate information service ForeclosureRadar. San Mateo County had 160 foreclosures in January, a 75 percent jump from December. ”

Housing Wire – “Decrease in mortgage delinquencies losing momentum: TransUnion” (2-16-11)

“The ratio of borrowers 60 days of more delinquent on their mortgages dropped to 6.41% in the fourth quarter from 6.44% the quarter before. Compared to the same period in 2009, mortgages delinquencies are down about 7%, TransUnion reported. In the third quarter, the national rate tumbled 3.5%.”

Housing Wire – “HUD Secretary: Reforms will not substantially impact affordable housing” (2-16-11)

“Raising the Federal Housing Administration’s annual mortgage insurance premium 25 basis points will not have a dramatic impact on the affordability of homes in America, U.S. Department of Housing and Urban Development Secretary Shaun Donovan said Wednesday.”

Housing Wire – “FHA’s Stevens says mortgage servicers could face potential fines, claims” (2-16-11)

“Federal Housing Administration Commissioner David Stevens said mortgage servicers under review for improper foreclosures could face fines and potentially forced reimbursements, according to his testimony before a House subcommittee Wednesday.”

Housing Wire – “FOMC: High unemployment, limited construction continue to hinder recovery” (2-16-11)

“the Federal Open Market Committee voted unanimously to keep the target federal funds rate at next to nothing – 0% to 0.25% – and continue with its controversial $600 billion bond-buying plans.”

Housing Wire – “Frank proposes amendment to increase SEC funding by $131 million” (2-16-11)

“U.S. Rep. Barney Frank (D-Mass.) is pushing to increase budget funding for the Securities and Exchange Commission as House representatives debate a bill that could cut funding to the agency by $41 million.”

Looking Back:

One year ago, the median home price in Southern California decreased by 6 percent within a month. CBIA reported that home sales in new communities decreased by 15 percent from last month. John Burns estimated that 5 million houses and condominiums with delinquent mortgages would end up in foreclosure over the next few years. TransUnion reported that mortages over 60 days delinquent increased to 6.89% in quarter four of 2009.

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 MBA reports mortgage applications decreased 5.5% last week. Zillow claims national home prices dropped 2.6% during the 4th quarter of 2010. Bernanke and Geithner said the economy is still having trouble, but have strong hope for stable growth.

In The News:

Market Watch – “10 reasons to be bullish on housing” (2-9-11)

“housing follows jobs. Consumer confidence is close to reaching last spring’s high point, the most optimistic the U.S. has felt since 2008. And while hiring hasn’t restarted in earnest, firing has slowed to a drip.”

Mortgage Bankers Association – “Mortgage Applications Decrease as Rates Jump in Latest MBA Weekly Survey” (2-9-11)

“The Market Composite Index, a measure of mortgage loan application volume, decreased 5.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3.9 percent compared with the previous week.”

NAR - “GSE Structures Must Protect Taxpayers and Ensure Mortgage Availability, Says NAR” (2-9-11)

“The House Financial Services Subcommittee will convene today for the first hearing in a series to debate the future of the government-sponsored enterprises, Fannie Mae and Freddie Mac. NAR’s recommended plan is to restructure the entities as government-chartered, non-shareholder owned authorities that protect taxpayers and ensure continued access to affordable mortgages for consumers who are willing and able to assume the responsibilities of the American Dream of home ownership.”

CNN - “30% of mortgages are underwater” (2-9-11)

“Home prices dropped 2.6% nationwide during the last three months of 2010, pushing more borrowers underwater, according to a quarterly real estate market survey from Zillow.com.”

Housing Wire – “Bernanke: Lagging real estate drags down investments” (2-9-11)

“During his testimony, the Chairman said while unemployment remains high, evidence of a ‘self-sustaining recovery’ driven by consumer and business spending has surfaced in economic data. He added that real consumer spending grew at an annual rate of 4% in the fourth quarter.”

Housing Wire – “Academics challenge Fed to create real jobs this time around” (2-9-11)

“According to the Labor Department’s Bureau of Labor Statistics, unemployment fell to 9% in January, though many critics point out that number does not include the amount of workers who have had pay scaled back or even those who have given up looking.”

Housing Wire – “Geithner: Weak housing, unemployment stifle economic recovery” (2-9-11)

“U.S. Treasury Secretary Timothy Geithner says the nation’s economic recovery is still plagued by high unemployment and a weak housing market, but he’s confident policy makers will address the nation’s current needs by raising the debt ceiling.”

Looking Back:

One year ago, Altera Real Estate foresaw significant improvement in the Orange County real estate market. National home prices returned to 2004 levels. Forecasters from iEmergent expected approximately $580 billion in mortgage refinancing during 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.

Fannie Mae and the MBA predict the housing market will begin a rebound that will last for the next two years, and Zandi predicts 4% gdp growth through 2012. IAS claims national home prices fell 0.8% during the 4th quarter of 2010.

In The News:

Bloomberg - “New-Home Recovery Seen in U.S. as Post-Super Bowl Selling Season Kicks Off” (2-8-11)

“The chief executive officers of six of the 10 largest U.S. homebuilders cited the potential of a sales comeback in the spring, traditionally their strongest season, during conference calls in the last four weeks. Housing forecasts from Fannie Mae and the Mortgage Bankers Association show the new-home market will begin a rebound that will last through at least 2012.”

Housing Wire – “Millions of homeowners still at risk as economy heats up: ASF panel” (2-8-11)

“Zandi expects GDP growth of close to 4% this year and in 2012. He also projects jobs growth in 2011 to more than double last year’s roughly 1.25 million new private sector jobs, climbing to about 2.5 million to 3 million. The unemployment rate should end 2011 south of 9%, dropping to lower than 8% by the end of 2012.”

Housing Wire – “Fed opens comment on Dodd-Frank regulation of nonbank firms” (2-8-11)

“The Federal Reserve Board has opened the public comment period on a proposed rule that, if implemented, would allow regulators to pull certain nonbank firms under the Fed’s regulatory scope by declaring them systemically important to the financial system.”

Housing Wire – “IAS: House price index drops in 4Q, despite gains in South” (2-8-11)

“Integrated Asset Services’ home price index fell 0.8% during the fourth quarter of 2010, compared to 3Q but gained 0.9% when compared to the year-ago quarter — a slight gain attributed mostly to the government’s homebuyer tax credit boost.”

Housing Wire – “Investors seen as key to stablizing housing market” (2-8-11)

“A panel at the American Securitization Forum in Orlando, Fla., said that the best buyers for distressed sales are housing investors, not owner-occupants. Further, the role of the former is seen as key to keeping the economy on track, they say.”

Housing Wire – “Dallas Fed CEO says he’ll dissent if quantitative easing returns” (2-8-11)

“Richard Fisher, CEO of the Federal Reserve Bank of Dallas, said he’s hard-pressed to imagine any type of scenario where he would vote for more quantitative easing by the Federal Open Market Committee.”

Housing Wire – “KBW finds meaningful decline in January mortgage prepayments” (2-8-11)

“Total prepayments for Fannie mortgage-backed securities dropped to a constant prepayment rate of 19.3% from more than 25% in December and 26% in November. The CPR is the ratio of mortgages prepaid in a certain time period. CPR for Freddie fell to 21.5% from 28.5% in December and 30.6% in November.”

Orange County Register – “Why lenders are wary of trusts” (2-8-11)

“many lenders will not fund into a trust. Typically if a lender will or will not do something it has something to do with either their ability to foreclose at a later date if need be, or cost. In the case of the living trust it is a case of both.”

Looking Back:

One year ago, the U.S. Treasury Department reported 66,465 permanent loan modifications over 8 months. Delinquencies on prime jumbo loans increased to 10 percent in one month. Distressed property sales increased in Dana Point and Laguna Beach. Unemployment in the U.S. construction industry increased to 24.7 percent in January.

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 MBA reports mortgage application volume fell 12.9% this week. According to the Commerce Department, new home sales dropped 7.6% year over year. $1.5 trillion in commercial debt is set to mature by 2014. A total of 58,020 loan modifications have been canceled, said the Treasury Department.

In The News:

Mortgage Banking Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (1-26-11)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 21, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 12.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 12.0 percent compared with the previous week.”

Los Angeles Times – “New-home sales increase in December” (1-26-11)

“New-home sales were at a seasonally adjusted annual rate of 329,000 units, a 7.6% drop from December 2009, the Commerce Department said. A total of 321,000 homes were built in 2010, the lowest level in 47 years, according to the Associated Press.”

Housing Wire – “SIGTARP: HAMP’s failure ‘devastating,’ permanent mods flat in December” (1-26-11)

“Mortgage servicers modified 30,030 troubled loans through the Home Affordable Modification Program in December, only a slight uptick from the month before and still underwhelming to the program’s largest watchdog.”

Housing Wire – “FHA terminates more than a dozen HUD mortgage originators and underwriters” (1-26-11)

“The Federal Housing Administration terminated agreements with 15 originators and seven underwriters approved for mortgage insurance from the Department of Housing and Urban Development, according to a recent Federal Register.”

Housing Wire – “Deloitte says the time is now for curing distressed borrowers” (1-26-11)

“Commercial loans in particular, are the big trouble area. There are $1.5 trillion in these debts maturing by 2014, and the means to finance are all but nonexistent. The commercial mortgage-backed securities market is improving, to be sure, but at issuance hitting $11 billion in 2010, down from a peak $230 billion in 2007.”

Bloomberg - “U.S. Foreclosure-Prevention Program Accelerated in December Amid Criticism” (1-26-11)

“Borrowers aided by the Home Affordable Modification Program grew to 579,650 in December, 5.5 percent more than a month earlier. Participation had grown 4.5 percent in November. Troubled borrowers continue to fail out of the program at a faster rate than they join. A total of 58,020 loan modifications have been canceled, a nearly 30 percent increase from the 44,972 reported in November, the Treasury report said.”

Looking Back:

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

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.

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

In The News:

Orange County Register – “Realistic sellers eyed as key to stable prices” (1-5-11)

“There’s a ton of pressure on rates to increase. An increasing deficit with the Fed printing money at warp speed, a government unwilling to cut spending, and no leader anywhere in the world willing to come up with a definitive game plan to get us out of this pickle, translates to mounting pressure on interest rates.”

Mortgage Bankers Association – “Mortgage Applications Drop the Week Before Christmas and Increase the Week After in Latest MBA Weekly Surveys” (1-5-11)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the weeks ending December 24, 2010 and December 31, 2010. For the week ending December 24, 2010, the Market Composite Index, a measure of mortgage loan application volume, decreased 3.9 percent on a seasonally adjusted basis from the prior week. For the week ending December 31, 2010, this index increased 2.3 percent on a seasonally adjusted basis.”

Housing Wire – “Hope Now: November mortgage modifications doubled foreclosure sales” (1-5-11)

“Mortgage lenders completed about 1.65 million permanent loan modifications through November vs. 1 million foreclosure sales, according to Hope Now.”

Housing Wire – “CMBS delinquencies hit record high in December” (1-5-11)

“The delinquency rate on commercial mortgage-backed securities reached 9.2% in December, the highest on record, according to analytics firm Trepp.”

Housing Wire – “Treasury relaxes rules to free-up HAFA short sales” (1-5-11)

“The Treasury Department took action in December eliminating some rules it said have held back short sales through the Home Affordable Foreclosure Alternatives program.”

Housing Wire – “Obama signs credit union stabilization act for NCUA to avoid Treasury borrowing” (1-5-11)

“President Obama returned from his vacation to a heavy workload, and on Tuesday signed 35 bills into law (pictured below). One of which is the National Credit Union Stabilization Act.”

Housing Wire - “Trade groups urge Federal Reserve to adjust Reg Z’s rule on appraisal fees” (1-5-11)

“Four appraisal trade associations urged the Federal Reserve Board to require appraisal management companies to disclose their fees to consumers and to reconsider the language and implementation of an interim rule that requires AMCs to pay ‘customary and reasonable’ appraiser fees.”

Orange County Register – “Great Park homebuilder gets financing” (1-5-11)

“FivePoint Communities, a company spun off by Miami-based builder Lennar Corp. to plan and build the Heritage Fields housing and other major projects, reportedly will get $400 million. Those funds will help FivePoint move forward on what is expected to eventually be a master-planned community with 5,000 new residences in Irvine. According to the WSJ, the fresh funds come from Boston-based State Street Bank & Trust Co. plus other investors.”

Looking Back:

One year ago, pending home sales decreased by 16 percent from October to November. The Mortgage Bankers Association believed that the third quarter of 2009 likely marked the end of the recession, but expected to see continuous trouble in the real estate market. Lockhart predicted there would be another spike in foreclosure activity. Realtors warned that buying REO properties can be risky for business.

For m ore 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 MDA DataQuick, 6,698 houses and condos closed escrow in the Bay Area last month. Also, 34,239 houses and condos were sold statewide. BarCap expects that of all the subprime mortgages still current and originated in 2005, 70% will default.

In The News:

CBIA - “An Updated, Upgraded Deck Made Easy With Composites” (9-16-10)

“According to a recent study by the Joint Center for Housing Studies at Harvard University, remodeling spending is expected to increase on an annual basis by the end of the year with growth accelerating to the double-digits in the first quarter of 2011. Fueled by increased confidence in the economy, more homeowners are investing in their homes again.”

MDA DataQuick – “California August Home Sales” (9-16-10)

“An estimated 34,239 new and resale houses and condos were sold statewide last month. That was down 2.7 percent from 35,202 in July, and down 14.0 percent from 39,811 for August 2009. California sales for the month of July have varied from a low of 29,764 in 1992 to a peak of 73,285 in 2005, while the average is 48,805. MDA DataQuick’s statistics go back to 1988.”

MDA DataQuick – “Bay Area Home Sales Drop to 1992 Level; Median Price Slips Again” (9-16-10)

“A total of 6,698 new and resale houses and condos closed escrow in the nine-county Bay Area last month, down 1.1 percent from 6,773 in July and down 10.9 percent from 7,518 in August 2009, according to MDA DataQuick of San Diego.”

MBA - “MBA Report: Give FHA More Resources and Authority to Strengthen Program” (9-16-10)

“The Federal Housing Authority (FHA) commissioner should be granted the resources to better manage the agency through the current housing market crisis and to allow the agency to continue to thrive when the market recovers, according to new report from the Mortgage Bankers Association. Increasing resources for staffing and technology are among the 12 recommendations to improve the FHA and the Government National Mortgage Association (Ginnie Mae) by the MBA’s Council on the Future of FHA and Ginnie Mae. Convened in November 2009, the council consists of senior executives from 27 companies, representing both large national lenders and small independent mortgage bankers.”

CNN - “Foreclosure rates hold steady” (9-16-10)

“The number of homeowners falling enough behind on their loans to attract initial notices of default was down 30% in August, RealtyTrac said Thursday. Eventually, that should translate into fewer people losing their homes.”

San Diego Union Tribune – “Most oppose walking away from mortgage” (9-16-10)

“A majority of Americans believe it is ‘unacceptable’ for homeowners to stop paying mortgage payments and walk away from their homes, says a Pew Research Center survey. Of the 2,967 adults surveyed during the second half of May, 59 percent said they believed it was wrong for a homeowner to stop making mortgage payments and surrender their home to a lender. Still, 19 percent said it was OK to walk away while another 17 percent said it depended on the homeowner’s circumstances.”

Housing Wire – “CoreLogic sees distressed housing sales rising in coming months” (9-16-10)

“CoreLogic (CLGX: 18.29 -0.76%) said tax credit-induced sales helped push distressed sales to a seven-month low in June, but the share of distressed sales is expected to bounce back in coming months, according to the firm’s inaugural U.S. Housing and Mortgage Trends report. The bi-monthly report will track housing sales, valuation, negative equity and foreclosure activity. In June, the distressed sale share fell to 24% of overall sales, down from a peak of 35% in early 2009, according to CoreLogic.”

Housing Wire – “Mission Capital principal: Banks stoke the economy with distressed sales” (9-16-10)

“Activity has dramatically picked up since the fourth quarter of 2008. This is in large part due to speculation on the part of funds and high net worth individuals in loan assets, as well as in the stock and debt of the underlying financial institutions. As banks have become more healthy and their financial projections more visible, they have stoked the economy by simultaneously lending and selling distressed loans at a discount. This creates a virtuous cycle of investment activity in that investors are investing in credit-impaired assets, rehabilitating them and then refinancing right-sized debt.”

Housing Wire – “BarCap estimates more subprime defaults from troubled vintages” (9-16-10)

“BarCap analysts are predicting high default rates on still-current subprime mortgages originated between 2005 and 2007. Of those subprime mortgages still current and originated in 2005, 70% are expected to default. In 2006, the expected default rate for current subprime is 89%, and 84% of current subprime from the 2007 vintage.”

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 event 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.

Standard & Poor claims U.S. home prices rose 0.8 percent in April. According to the MBA, independent mortgage bankers and subsidiaries made an average profit of $1,135 on each loan they originated in 2009.  Congress is still debating over legislation that would eliminate the HVCC in 90 days if passed. The House voted 409-5 to extend the closing deadline for the tax credit to Sept. 30.

In The News:

Los Angeles Times – “Home prices rise in 20 major cities as buyers rush to obtain tax credit” (6-29-10)

“Prices rose 3.8% in April compared with April 2009 and were up 0.8% from March, when the data aren’t adjusted for seasonal fluctuations, according to the Standard & Poor’s/Case-Shiller index of 20 metropolitan areas. California cities continued to appreciate, according to the nonseasonally adjusted index, with Los Angeles and San Diego up 0.7% in April and San Francisco up 2.2%.”

Mortgage Bankers Association – “Production Profits Rebounded in 2009, According to MBA Study of Independent Mortgage Bankers and Subsidiaries” (6-29-10)

“Independent mortgage bankers and subsidiaries made an average profit of $1,135 on each loan they originated in 2009, compared to $305 per loan in 2008, according to the Mortgage Bankers Association (MBA)’s Annual 2009 Mortgage Bankers Production Survey released today.”

Housing Wire – “Senator Yanks Financial Reform Support Due to Last Minute Bank Tax Change” (6-29-10)

“Senator Brown sent a letter to sponsors Sen Christopher Dodd (D-CT) and Rep Barney Frank (D-MA) citing the addition of a $19bn bank tax included in the House, but not the Senate versions, as the reason for pulling support. The bill reconciled late last week.”

Housing Wire – “Amendment to Eliminate HVCC Still Alive in Financial Reform Bill” (6-29-10)

“An amendment to the Wall Street Reform Bill that would eliminate the Home Valuation Code of Conduct (HVCC) survived congressional debates last week, according to one representative’s office. A congressional conference last week took place to reconcile both versions of the House and Senate financial reform bills. As it stands now, the HVCC would be eliminated 90 days after the bill is signed.”

Bloomberg - “Volcker Rule May Give Goldman, Citigroup Until 2022 to Comply” (6-29-10)

“Goldman Sachs Group Inc. and Citigroup Inc. are among U.S. banks that may have as long as a dozen years to cut stakes in in-house hedge funds and private- equity units under a regulatory revamp agreed to last week. Rules curbing banks’ investments in their own funds would take effect 15 months to two years after a law is passed, according to the bill. Banks would have two years to comply, with the potential for three one-year extensions after that.”

Bloomberg - “U.S. House Extends Closing Deadline for Homebuyer Tax Credit” (6-29-10)

“The U.S. House of Representatives voted to give homebuyers who qualified for a federal tax credit more time to settle on their pending purchases. The House voted 409-5 to extend the deadline for closing home purchases to Sept. 30. The program initially required borrowers who signed contracts before April 30 to complete paperwork by July 1 to get a tax credit of as much as $8,000.”

Orange County Register – “O.C. brokers raking in more cash” (6-29-10)

“Dollars earned by brokers from Orange County home sales jumped 27.3% in May over broker revenues generated the same month a year ago. It was the first May in five years in which broker revenues increased from year-earlier levels, according to new data from the Southern California Multiple Listing Service.”

Orange County Register – “1 in 4 transactions a short sale” (6-29-10)

“Of the 2,778 homes sold through the MLS, 672 or 24.2% of them were so-called ‘short sales.’ By comparison, homes seized by lenders through foreclosure accounted for 13% of all May sales, or one out of every eight. Altogether, ‘distressed sales’ accounted for almost 40% of all homes sold through the MLS in May.”

Looking Back:

One year ago, the House of Representatives passed legislation that required new homes to be built 30 percent more energy efficient than mandated in the 2006 International Energy Conservation Code. The federal regulator for Fannie Mae and Freddie Mac claimed that home prices were bottoming.

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 the MBA, the level of commercial/multifamily mortgage debt outstanding decreased to $3.31 trillion in the first quarter. The NAR reports existing home sales decreased by 2.2 percent last month. California home sales increased 1.2 percent last month. An amendment to the Wall Street Reform Bill being debated today in Congress would eliminate the hotly contested Home Valuation Code of Conduct.

In The News:

Mortgage Bankers Association – “MBA Analysis: Commercial and Multifamily Mortgage Debt Outstanding Declined 0.9 Percent in First Quarter 2010″ (6-22-10)

“The level of commercial/multifamily mortgage debt outstanding decreased in the first quarter, to $3.31 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data. Declines were driven by drops in commercial and multifamily mortgages held in CMBS and construction loans held by banks and thrifts. The $3.31 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $31 billion or 0.9 percent from the fourth quarter of 2009. Multifamily mortgage debt outstanding rose to $852 billion, an increase of $3 billion or 0.4 percent from the fourth quarter of 2009.”

NAR - “May Shows a Continued Strong Pace for Existing-Home Sales” (6-22-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.”

California Builder – “Market Your Way Out of Tough Times” (6-22-10)

“Many businesses think ‘keeping your name in front of the public’ is a valid advertising strategy. It’s questionable at best, but it’s way too risky and low-yield in tough times. Instead, make sure your advertising is only in publications that reach your best prospects, and – this is the most important part – make a specific offer and call to action to get readers of the ad to call you.”

CAR - “May sales and price report” (6-22-10)

“Home sales increased 1.2 percent in May in California compared with the same period a year ago, while the median price of an existing home rose 23.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Sacramento Bee – “California personal income grows in quarter” (6-22-10)

“Personal income in California grew $14 billion to $1.57 trillion in the first quarter compared with the last quarter of 2009, according to statistics released Friday by the U.S. Bureau of Economic Analysis. The 0.9 percent gain matched personal income growth for the United States, but California ranked 27th among all states.”

Inman - “Social networking sites gobble more traffic” (6-22-10)

“Social networking sites and websites hosting forums grew their market share by nearly 62 percent during the year ending in May — the largest gain among any real estate-related category, according to a new quarterly report from online metrics firm Hitwise. Visits to websites in the real estate category during May were down 24.3 percent from a year ago — the 12th consecutive month of year-over-year traffic declines dating to June 2009, the report said.”

Inman - “California may restrict lender claims over refis” (6-22-10)

“SB 1178, which passed the state Senate in a 30-4 vote on June 3, would extend protection from deficiency judgments to homeowners who have refinanced, but only up to the amount of their original loan. In other words, if the original mortgage was $300,000, and the homeowner refinanced and defaulted on a $350,000 loan, they would not be liable to repay the first $300,000.”

Housing Wire – “House Members Look to Eliminate HVCC, Change Appraisal Process” (6-22-10)

“An amendment to the Wall Street Reform Bill being debated today in Congress would eliminate the hotly contested Home Valuation Code of Conduct (HVCC), which has changed much of the home appraisal process since its introduction last year. The Federal Housing Finance Agency (FHFA) implemented HVCC in May 2009 in an attempt to improve the independence of appraisers by prohibiting lenders and third parties from influencing appraisals. It also limits the interactions between the appraisers and those originating the loan.”

Housing Wire – “Fannie and Freddie Servicers Refinance 53% More Loans in Q110: FHFA” (6-22-10)

“Mortgage servicers refinanced 53% more Fannie Mae Mae and Freddie Mac loans under the Home Affordable Refinance Program (HARP) in Q110 than in the previous quarter, according to the Federal Housing Finance Agency (FHFA). Delinquencies are improving as well in the Fannie and Freddie portfolios. According to the FHFA, the amount of loans behind by 60 or more days declined for the first time in two years, dropping by more than 23,000 to roughly 1.7m in Q110.”

Housing Wire – “Real Estate Owned Inventory to Peak in Summer 2011: BarCap” (6-22-10)

“The amount of REO inventory held by lenders is expected to peak in August 2011 at 545,000 properties, according to analysts at Barclays Capital. In April, REO remained relatively flat, increasing 0.8% from March to 526,000. The influx was primarily due to an increase in REO from the government-sponsored enterprises (GSEs), according to BarCap.”

Looking Back:

One year ago, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70% of the units have been sold. The Mortgage Bankers Association lowered its forecast of mortgage originations for 2009 to $2.03 trillion. Many lawmakers and businesses were calling for an extension of the $8,000 tax credit.\

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.

436,000 people have dropped out of the mortgage modification program since March 2009. A survey from Grant Thornton LLP shows that 45% of bankers expect economic conditions to improve over the next 6 months. According to CoreLogic, national housing prices increased 2.6% in April 2010 compared to April 2009. Analyst Meredith Whitney believes the U.S. housing market will experience a second recession.

In The News:

Los Angeles Times – “Borrowers face foreclosure after Obama loan assistance program fails to provide help” (6-21-10)

“More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. That’s more than the 27 percent who have managed to have their loan payments reduced to help them keep their homes. Last month alone, 150,000 borrowers left the program — bringing the total to 436,000 who have exited since it began in March 2009.”

Housing Wire – “More Bankers Expect Economic Improvement before 2011: Grant Thornton” (6-21-10)

“The majority of bankers are optimistic about the US economy in coming months, with 45% expecting conditions to improve over the next six months, according to a survey by US audit firm Grant Thornton LLP. It marks a significant improvement over the same survey six months earlier, which found 24% of respondents expected conditions to improve.”

Housing Wire – “SEC Charges Investment Advisor with CDO of Mortgage-Backed Securities Fraud” (6-21-10)

“The Securities and Exchange Commission is charging Thomas Priore, owner and president of ICP Asset Management, with the fraudulent management of investment products tied to the mortgage finance markets. It is alleged that ICP and three affiliated firms misrepresented four multi-million-dollar collateralized debt obligation (CDO) platforms backed by mortgage securities (MBS). The SEC claims the CDOs lost tens of millions of dollars, while Priore collected tens of millions of dollars in advisory fees and undisclosed profits at the expense of their clients and investors.”

Housing Wire – “Total Number of HAMP Permanent Modifications Passes 340,000″ (6-21-10)

“Servicers participating in the Home Affordable Modification Program (HAMP) conducted 340,459 permanent modifications through May 2010 since the program launched in March 2009, up from 299,092 through April, according to the Treasury Department. The Treasury launched HAMP to provide incentives to servicers for the modification of mortgages on the verge of foreclosure. In order to receive a permanent modification, borrowers must make three monthly payments during the trial period and submit all documentation.”

Housing Wire – “Architecture Firms See Business Increase with Demand for Smaller Houses: AIA” (6-21-10)

“AIA conducted a survey of 500 architecture firms that concentrate practices in the residential sector. AIA also found that American homebuyers are showing greater interest in smaller homes and lot sizes. According to the survey, the economic downturn and growing concerns over rising utility costs have created a demand for smaller homes and lot sizes.”

Housing Wire – “CoreLogic Home Price Index Up 2.6% in April” (6-21-10)

“National housing prices increased 2.6% in April 2010 compared to April 2009 in the CoreLogic (CLGX: 18.335 -2.16%) monthly home price index (HPI). It’s the second month in a row that prices have increased from the same month one year ago. The April increase comes after a 2.3% year-over-year increase in March. The HPI was upwardly revised from an original projection of a 1.7% increase for March.”

Bloomberg - “Whitney Says She Sees ‘Double Dip’ in Housing Market” (6-21-10)

“The U.S. housing market will experience a second recession, forcing banks to post additional loan-loss reserves, analyst Meredith Whitney said.”

Orange County Register – “House price per sq. ft. highest in 2 years” (6-21-10)

“The median price per square foot paid to buy an Orange County house hit $296.32 in May, the highest that measure has been since August 2008, figures from MDA DataQuick show. The price per square foot for an existing, single-family home has been on an upsurge after bottoming out in January 2009, increasing from the month before in 10 of the past 13 months.”

Orange County Register – “5 O.C. hot spots for home-price cuts” (6-21-10)

“As of June 1, 29% of homes on the market in Orange County have seen at least one price reduction, according to online home tracker Trulia.com. Nationwide, 22% of listings had at least one price trim, with the average reduction 10% off the original asking price.”

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.