Sources:

New jobless claims drop to lowest level since 2008
California unemployment falls for 4th straight month in November
Mortgage Rates for 30-Year U.S. Loans Fall to 3.94% as Record Low Matched
SoCal home sales rise on declining prices
California November Home Sales
S.E.C. Sues 6 Former Top Fannie and Freddie Executives
FHFA extends loan data implementation deadline for GSEs
Attorney General Expect to Reach Settlement Before Christmas
FDIC Announces Settlement With Washington Mutual Directors and Officers
Foreign homebuyers clicking on depressed US housing markets
Realtors: We overcounted Hoem Sales for Five Years

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 events. In a top story, six former Fannie Mae and Freddie Mac top executives have been accused by the SEC of fraud involving securites.  The world’s largest banks are also being downgraded by Fitch, banks including Bank of America, Morgan Stanley, and Goldman Sachs.

In The News:

Los Angeles Times - “SEC accuses former Fannie Mae, Freddie Mac bosses of fraud” (12-16-11)

“Six former top executives of housing finance giants Fannie Mae and Freddie Mac were accused of securities fraud Friday by federal regulators for allegedly misleading investors about the size of the companies’ risky subprime mortgage holdings.  30-year fixed mortgage rates are at an all-time low of 3.94%.”

Realty Times – “30-Year Fixed-Rate Mortgage Matches All-Time Record Low at 3.94 Percent” (12-16-11)

“In Freddie Mac’s results of its Primary Mortgage Market Survey® (PMMS®), the average fixed mortgage rates at or near their all-time lows. The 30-year fixed matched the average all-time record low of 3.94 percent, and a new all-time record low was set for the 15-year fixed, both previously set in the October 6, 2011 Freddie Mac PMMS.“

San Francisco Chronicle - “Moratorium leads to dip in foreclosure filings” (12-16-11)

“U.S. foreclosure filings fell last month as delinquent homeowners got a holiday  break, RealtyTrac reported.  A total of 224,394 properties received notices of default, auction or  repossession, down 14 percent from a year earlier, the data seller said Thursday.”

CNN Money - “Fitch downgrades world’s largest banks” (12-16-11)

“The ratings firm Fitch downgraded a cluster of the world’s largest banks Thursday, pointing to trading challenges facing international markets.  The banks included Bank of America (BAC, Fortune 500), Morgan Stanley (MS, Fortune 500) and Goldman Sachs (GS, Fortune 500), as well as Europe’s Barclays, Societe Generale and BNP Paribas.”

Housing Wire - “Fed officials testify on European liquidity injections” (12-16-11)

“Steven Kamin, acting director of the division of international finance for the Federal Reserve, said in prepared congressional testimony that swap transactions to help Europe “present no exchange rate or interest rate risk to the Fed.”

Los Angeles Times – “California unemployment falls for 4th straight month in November” (12-16-11)

“California employers added 6,600 new jobs in November, driving the monthly unemployment rate down to 11.3%, its lowest level since the depths of the recession in June 2009.  The decline from October’s jobless rate of 11.7% marked the fourth consecutive month that the Golden State has generated jobs as it gradually replaces some of the 1.3 million lost in the worst economic downturn in half a century, the California Employment Development Department reported.”

Housing Wire – “Nevada AG sues LPS, alleging mishandled mortgage documentation” (12-16-11)

“Nevada Attorney General Catherine Cortez Masto filed suit against Lender Processing Services (LPS: 15.83 -8.71%) for allegedly falsify foreclosure documents with the state.”

DS News - “Mortgage Debt in the U.S. Continues to Diminish” (12-16-11)

“The ongoing turmoil still gripping housing markets across the country has manifested itself in the Federal Reserve’s macro assessment of household wealth and capital flow.”

Housing Wire - “MBIA moves to limit CMBS exposure” (12-16-11)

“Bond insurer MBIA (MBIA: 0.00 N/A) signed a deal this week to commute $20 billion of its insured exposure to shield the company from future risks on volatile commercial mortgage-backed securities.”

Hard Money Loan Closed

Compton, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $125,000 on a 4 bedroom, 2 bathroom home appraised for $238,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris will be speaking at the Real Estate Rewind at IRCA Los Angeles on January 3, 2012.

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

Looking Back:

6,111 new and resale houses and condos were sold in the Bay Area in November 2010, according to MDA DataQuick. Freddie Mac reported the 30-year mortgage rate rose to 4.83%. Statistics from CoreLogic show home prices declined 3.93% in October from July 2010. Three members of congress introduced a bill which would possibly put an end to the use of MERS by GSEs.

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.

68,239 Notices of Default (NoDs) were recorded at county recorders offices in the 1st quarter, according to MDA DataQuick. Statistics from the Commerce Department show housing starts increased 7.2% in March. A California bankruptcy court says MERS cannot help a trustee establish legal standing to foreclose on a securitized mortgage. The FDIC closed six banks on April 15th.

In The News:

MDA DataQuick - “California Mortgage Defaults Drop Again; Foreclosures up” (4-19-11)

“A total of 68,239 Notices of Default (NoDs) were recorded at county recorders offices during the January-to-March period. That was down 2.2 percent from 69,799 for the prior quarter, and down 15.8 percent from 81,054 in first-quarter 2010, according to San Diego-based DataQuick.”

Housing Wire – “March home sales increase in almost all metros: RE/MAX” (4-19-11)

“Home sales jumped more than 10% in 53 of the 54 metros tracked by RE/MAX between February and March, with only New York not achieving double-digits gains.”

Housing Wire – “Apartment and industrial sectors to lead REIT performance in 1Q: Barclays” (4-19-11)

“Barclays said it expects apartment and industrial REIT performance to improve during the first quarter. Effective rental rates are up about 5%, according to Barclays, which should drive positive leasing trends.”

Bloomberg - “Housing Starts in U.S. Increased to 549,000 in March, Exceeding Forecasts” (4-19-11)

“Work began on 549,000 houses at an annual pace, up 7.2 percent from the prior month and exceeding the 520,000 median forecast of economists surveyed by Bloomberg News, figures from the Commerce Department showed today in Washington. Starts fell 19 percent in February to the lowest level in almost two years.”

Comptroller of the Currency – “Description: Revised Examination Procedures” (4-19-11)

“The Tenants Protection Act provides protections to bona fide tenants in the case of any foreclosure on a federally related mortgage loan or on any dwelling or residential real property. These protections provide that any immediate successor in interest in such a foreclosed property, including a bank that takes title to a house after foreclosure, will assume the interest subject to the rights of any bona fide tenant and must comply with certain notice requirements.”

Housing Wire – “California bankruptcy court rules against MERS” (4-19-11)

“A California bankruptcy court says Mortgage Electronic Registration Systems cannot help a trustee establish legal standing to foreclose on a securitized mortgage unless the trustee already possesses an actual assignment of interest in the loan.”

Housing Wire – “Commercial real estate makes up 77% of troubled loans at failed banks” (4-19-11)

“Regulators closed six banks on April 15, accounting for a total of $4.8 billion in assets. So far in 2011, there have been 34 closings, but Federal Deposit Insurance Corp. Chairwoman Sheila Bair said bank failures peaked the year before when 156 were shuttered.”

Looking Back:

One year ago, Irvine Co. reentered the home construction business for the first time in over 20 years. Fannie Mae statistics showed the economy decelerated in the first quarter of 2010, but would likely increase in the near future. Real estate executive Anthony Ghio pled guilty to bid rigging in a scheme to profit off sheriff sale foreclosure auctions. The U.K. and Germany were interested in taking legal action against Goldman Sachs.

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.

Resources:
Home Values Near Unprecedented Decline as Hints of Stabilization Wane in Third Quarter
FDIC prepares to crack down on officials of failed banks
FDIC OKs plan to overhaul insurance fund payments
Obama commission considers limits to mortgage interest tax deductions

Today’s News Synopsis:

Freddie Mac reports 30-year loan rates decreased to 2.24%. Freddie Mac economists said bank foreclosure programs could cause housing to drop to a new low. President Obama intends to select Joseph Smith as the new director of the Federal Housing Finance Agency. D.R. Horton expects 2011 to be a weak year for the home-building industry.

USA Today – “Stable home prices, low mortgage rates could gas economy” (11-12-10)

“Rates on 30-year fixed loans averaged 4.17%, down from 4.24% a week ago, Freddie Mac reported Thursday. They’ve been below 5% since early May.”

Housing Wire – “California Realtors say cutting mortgage interest tax deduction will devastate nation” (11-12-10)

“Home prices in the affluent California county increased roughly 6% to $699,174 in October, according to the association. It’s up 11% from a year ago. The National Commission on Fiscal Responsibility and Reform, proposed two options in their efforts to overhaul the tax system. One was to reduce how much homeowners could deduct by 20%, and the other was to exclude second residences, home equity loans or mortgages over $500,000.”

Housing Wire – “Excessive risk retention may throttle mortgage finance: ASF” (11-12-10)

“Under the sweeping reforms of Dodd-Frank, federal financial regulators are tasked with defining a qualified residential mortgage to determine which loans will be exempt from new risk-retention requirements. The American Securitization Forum wants the regulators to establish new standards for income and asset verification, minimum borrower equity, and debt-to-income ratios that its members believe significantly strengthen the mortgage pools and ‘ensures appropriate credit can resume flowing to American homebuyers.’”

Housing Wire – “Freddie Mac says foreclosure problems may drain recovery” (11-12-10)

“Freddie Mac economists said recent problems in the banks’ foreclosure processes could slow what little momentum the recovery holds, and perhaps send the housing market down to a new low.”

Housing Wire – “KBW says market ‘overly pessimistic’ on Fannie, Freddie losses” (11-12-10)

“Analysts at investment bank Keefe, Bruyette & Woods said both Fannie Mae and Freddie Mac have enough in reserves to absorb losses from legacy portfolios and that market estimates of potential losses are ‘overly pessimistic.’”

Housing Wire – “Obama to nominate Joseph Smith as director of FHFA” (11-12-10)

“President Obama will nominate Joseph Smith as the new director of the Federal Housing Finance Agency, according to the White House.”

Housing Wire – “Barclays Capital expects Fed to buy Treasurys beyond 2Q” (11-12-10)

“Barclays Capital expects the Federal Reserve will continue buying Treasury securities past the second quarter, although it appears investors feel otherwise as there has been considerable sell-off in long-term bonds this week.”

Bloomberg – “D.R. Horton Sees `Challenging’ Year as Home Sales May Decline” (11-12-10)

“D.R. Horton Inc., the second-largest U.S. homebuilder by revenue, expects 2011 to be ‘challenging’ for the industry as consumer confidence and employment remain weak, Chief Executive Officer Donald Tomnitz said.”

Looking Back:

One year ago, foreclosure filings were found in approximately one out of every 385 U.S. homes. The MBA reported that mortgage loan application volume increased by 3.2 percent in one week. The jumbo loan limit that was set to expire at the end of 2009 was extended through 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 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 200 podcasts in our free investor radio archive.

Sources:
California Housing Starts Post Decline in September, CBIA Announces
September Existing-Home Sales Show Another Strong Gain
Foreclosures increase in 65% of MSAs in 3Q: RealtyTrac
Commercial Property Prices in U.S. Decline to Eight-Year Low, Moody’s Says
California Mortgage Defaults Rise in Third Quarter
Banks `Want to Sit Down’ With States to Discuss Foreclosures
Wells Fargo Will File More Foreclosure Affidavits After Lapses
NYC Judge Foreclosure Smackdown Shows Problems With Bank “Technicalities” Defense
Title insurers seek to insulate themselves from foreclosure losses
Insurers Ease on Amnesty
FICO Mortgage Score

Today’s News Synopsis:

Fannie Mae intends to end the Payment Reduction Plan. McGraw-Hill Construction (MHP: 37.65 +0.32%) expects construction starts in 2011 to increase 8%. According to a survey from the Washinton Post, 1/3 of Americans are concerned about their ability to continue making their housing payments. The U.S. economy grew at a 2 percent annual rate in the 3rd quarter.

In The News:

Inman - “Most are worried about housing payments” (10-29-10)

“More than half of Americans are worried about not having enough money to pay their mortgage or rent, according to a survey from the Washington Post released today. A third of respondents were ‘very concerned’ about their ability to make housing payments, while a fifth were ‘somewhat concerned,’ adding up to 53 percent of respondents. This contrasts to the results of similar surveys the newspaper conducted in February 2009 and December 2008.”

San Francisco Chronicle – “U.S. Economy Picked Up in Third Quarter on Consumer Spending” (10-29-10)

“The U.S. economy grew at a 2 percent annual rate in the third quarter as consumer spending climbed the most in almost four years, a sign the expansion is developing staying power. The increase in gross domestic product matched the median forecast of economists surveyed by Bloomberg News and followed a 1.7 percent gain the prior three months, Commerce Department figures showed today in Washington.”

The Sacramento Bee – “$8.3 million available in Cash for Appliances” (10-29-10)

“California’s Cash for Appliances program had about $8.3 million in rebate funds remaining as of Tuesday night.”

Housing Wire – “LPS: no defects in related foreclosures, no fee-splitting” (10-29-10)

“Lender Processing Services (LPS: 28.84 +4.87%) began reducing its foreclosure signing services back in 2008 and stands by its mortgage processing services. Further, when the firm caught a manager robo-signing foreclosure documents, the only such case it says it found, that manager was immediately dismissed and documents remediated.”

Housing Wire – “Fannie Mae retires HAMP option for mortgage payment reductions” (10-29-10)

“Fannie Mae will end its Payment Reduction Plan (PRP), a program designed to give borrowers ineligible for the Home Affordable Modification Program temporary payment relief while the servicer works toward another foreclosure alternative.”

Housing Wire – “Construction market to rise 8% in 2011: McGraw-Hill” (10-29-10)

“McGraw-Hill Construction (MHP: 37.65 +0.32%) said construction starts in 2011 are expected to advance 8% to $445.5 billion, with single-family and multifamily starts leading the way.”

Housing Wire – “Barclays Capital sees limited impact to CMBS from MERS litigation” (10-29-10)

“Barclays Capital analysts don’t expect potential lawsuits against Mortgage Electronic Registration Systems to result in any significant issue in commercial mortgage-backed securities valuations.”

Inman - “Risk and rewards in Fed’s plan” (10-29-10)

“Monetary ‘easing’ is a central bank’s standard antidote to recession, tried and effective hundreds of times here and elsewhere. The central bank cuts its cost of money and ‘injects’ reserves into banks by buying Treasurys from them with invented money. These operations ignite lending and borrowing, and we recover.”

Looking Back:

One year ago, Moody’s estimated that prices would continue to decline until Q3 of 2010. According to Freddie Mac, interest rates on 30-year fixed rate loans increased to 5.03 percent. The U.S. Census Bureau reported that the number of vacant properties rose to 18.7 million, but the homeownership rate maintained at 67.6 percent.

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.

The MBA’s weekly survey shows mortgage application volume increased 3.2% this week. Mortgage bankers estimate the housing market will not recover until 2012 at least. HUD reports only 24,000 houses sold last month.

In The News:

Mortgage Bankers Association - “Mortgage Applications Increase in Latest MBA Weekly Survey” (10-27-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 22, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 3.2 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 3.1 percent compared with the previous week.”

Wall Street Journal – “Mortgage Bankers Push Housing Recovery to 2012″ (10-27-10)

“Remember the 2010 housing recovery? The Oracle of Omaha said that by the end of this year things would get better. He wasn’t the only one. Fitch also promised us stability in late 2010. Well, as the foreclosure mess spirals us toward Dec. 31, the chances for a happy housing new year seem pretty remote. On Tuesday, the nation’s mortgage bankers released a report saying that they expect the housing market to continue limping along into next year. Things could pick up, they say, in 2012.”

CNN - “New home sales in slow recovery” (10-27-10)

“Sales of newly built single-family homes rose to an annual rate of 307,000 units in September from 288,000 units the month before, the Commerce Department said. The sales figure was higher that the annual rate of 299,000 expected by analysts surveyed by Briefing.com.”

Housing Wire – “BarCap: MERS foreclosure issues may be spreading to commercial real estate” (10-27-10)

“Possible foreclosure issues with loans processed through the Mortgage Electronic Recording System, or MERS, may be spreading to commercial real estate, but the effect on securitizations could be minimal, according to Barclays Capital analysts.”

Housing Wire – “September new home sales drop to yearly low along with market inventory” (10-27-10)

“According to data released by the U.S. Census Bureau and the Department of Housing and Urban Development Wednesday, only 24,000 houses sold last month. Year-to-date, 257,000 new homes have been sold, down 11.7% from the same period in 2009.”

Bloomberg - “Mortgage Bankers Bristle at Notion of Giving Foreclosed Debtors Free Homes” (10-27-10)

“‘Everybody wants to believe in this Robin Hood scenario, where everyone is going to get a free house,’ Seares said yesterday during a panel discussion at the mortgage group’s conference in Atlanta. ‘That’s not really plausible.’”

Orange County Register – “UCLA: O.C. home prices to surge 49%” (10-27-10)

“Orange County will have a half-million-dollar housing market again by 2012, and home sales volume will rebound by a whopping 43% over the next two years, according to the latest UCLA Anderson Forecast for the O.C. housing market.”

Looking Back:

One year ago, the Senate considered a proposal to extend and cap the tax credit at $7,290. Interthinx estimated that mortgage fraud risk increased by 11 percent from quarter 2 to quarter 3 of 2009. Goldman Sachs claimed that home price stabilization would not last, but Bank of America claimed that the outlook for home prices was more positive.

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.

18,091 new and resale homes were sold in Southern California, said MDA DataQuick. Moody’s reports commercial real estate prices fell 3.3% from last month. A survey from American Strategies and Myers Research shows 77% of adults consider buying a home to be a good financial decision in general.

In The News:

DQNews - “Southern California Home Sales Drop Again, Median Price Edges Up” (10-19-10)

“A total of 18,091 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in September. That was down 2.4 percent from 18,541 in August, and down 16.0 percent from 21,539 for September 2009, according to MDA DataQuick of San Diego.”

CNN - “Housing starts jump to 5-month high” (10-19-10)

“Housing starts, or the number of new homes being built, rose 0.3% to a seasonally adjusted annual rate of 610,000 in September, up from a revised 608,000 in August, the Commerce Department said.”

Housing Wire – “Barclays estimates banks face $85 billion in mortgage reps and warranties” (10-19-10)

“Barclays Capital estimates over the next five to seven years, banks may end up paying $85 billion in claims, which would result in another $75 billion of more losses to come. Analysts, though, admit the math is ‘highly subjective’ and included many assumptions, and because the claims would be paid out over time, risks of concentrated damage to balance sheets are relatively low.”

Housing Wire – “FDIC seeks long-term changes to Deposit Insurance Fund” (10-19-10)

“The board of directors for the Federal Deposit Insurance Corp. voted Tuesday to propose a long-term management plan for the Deposit Insurance Fund, which provides monetary insurance to FDIC banks in the event of failure. The two main goals of such a plan, which is required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, are to maintain a positive fund balance as well as keep future assessment rates consistent for banks.”

Housing Wire – “KBW: Two-thirds of investors oppose FASB accounting proposal” (10-19-10)

“One of the key changes in the proposal would require banks to report the estimated fair value of most loans on their books alongside the current cost accounting valuations. According to the survey of 62 U.S. institutional investors, only one in five favor the proposed changes.”

Housing Wire – “Fitch: 2006, 2007 subprime RMBS prices improving” (10-19-10)

“Subprime prices within two of the most-maligned vintages of residential mortgage-backed securities are showing signs of stabilizing, according Fitch Ratings. The agency’s total market price index for the RMBS sector through September was 9.85, which is nearly flat with the previous three months, according to analysts. But Fitch said RMBS prices from the beleaguered 2006 and 2007 vintages improved last month, climbing 15% and 10%.”

Bloomberg - “Commercial Property Prices in U.S. Decline to Eight-Year Low, Moody’s Says” (10-19-10)

“The Moody’s/REAL Commercial Property Price Index fell 3.3 percent from the prior month to surpass the post-crash low in October 2009, the company said in a statement today. The measure is 45 percent below its October 2007 peak and is at its lowest since June 2002.”

Inman - “Homeownership losing its appeal?” (10-19-10)

“American Strategies and Myers Research & Strategic Services LLC conducted the 2010 Housing Opportunity Pulse Survey on behalf of the National Association of Realtors, interviewing 1,209 adults by telephone Sept. 12-17, 2010. A quarter were renters and 70 percent were homeowners. Overall, 77 percent of respondents said they thought buying a home was a good financial decision in general; 16 percent said it was not a good decision; and 6 percent said they didn’t know.”

Looking Back:

Gov. Arnold Schwarzenegger signed SB 94, which prevents prohibits any person from collecting an advance fee from a consumer for loan modification. According to Campbell Surveys, the national average home price rose 6% from August to September. MetroStudy anticipates a total of 562,000 housing starts 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 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.

Mortgage applications decreased 8.9% this week, according to the MBA. Fannie Mae predicts 2010 sales will total 7.4% less than sales in 2009. UCLA economists predict the unemployment rate will remain above 10% until the end of 2012. GSEs have lost $226 billion since the end of 2007.

In The News:

Mortgage Bankers Association - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (9-15-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September 10, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 8.9 percent on a seasonally adjusted basis from one week earlier.  This week’s results include an adjustment to account for the Labor Day holiday. On an unadjusted basis, the Index decreased 27.4 percent compared with the previous week.”

Reuters - “Fannie Mae now sees US home sales drop, not rise” (9-15-10)

“The company is predicting total U.S. sales of new and existing homes in 2010 will drop 7.4 percent from 2009, compared with expectations for a 0.8 percent rise in its forecast last month. It means sales would fall to about 5.12 million homes from 5.53 million units in 2009.”

The Press Enterprise – “UCLA economists say growth will be hard to notice” (9-15-10)

“Now UCLA’s economists say it’s unlikely there will be enough job growth to drive the state’s unemployment level below 10 percent until the end of 2012.”

Housing Wire – “Barr: GSEs won’t exist once reform takes root” (9-15-10)

“Fannie Mae and Freddie Mac won’t exist in their current state once financial reform takes root, according to a top Treasury Department official. Prior to conservatorship two year ago, the government-sponsored entities operated under a ‘heads I win, tails you lose’ system that is unacceptable, Michael Barr said Wednesday before a subcommittee of the House Committee on Financial Services.”

Housing Wire – “FHFA estimates GSEs final cost to taxpayers could reach $400 billion” (9-15-10)

“Speaking before the House Financial Services Committee today, Edward DeMarco, acting director of the Federal Housing Finance Agency maintains that the government-sponsored enterprises could still cost the taxpayers $400 billion. Fannie Mae and Freddie Mac were taken into conservatorship by the FHFA in September 2008. Since the end of 2007, the GSEs have lost $226 billion with 73% of that stemming from the single-family credit guarantee business. The Treasury has recorded losses of $148 billion attributable to its bailout of Fannie and Freddie.”

Housing Wire – “New project inquiries at residential architecture firms down 24% in 2Q: AIA” (9-15-10)

“Kermit Baker, the chief economist at AIA, said business conditions at architecture firms hit an all-time low in 2008 but had been making a steady recovery to the first quarter of 2010, when these companies reported the first increase in billings in nearly three years.”

Housing Wire - “Zillow 30-year mortgage rates go up, CEO steps down” (9-15-10)

“The 30-year, fixed-mortgage rate increased last week to 4.32% from a near-record low of 4.27% the week prior, according to the Zillow Mortgage Marketplace weekly update.”

Bloomberg - “U.S. Home Prices Face 3-Year Drop as Inventory Surge Looms” (9-15-10)

“Shadow inventory — the supply of homes in default or foreclosure that may be offered for sale — is preventing prices from bottoming after a 28 percent plunge from 2006, according to analysts from Moody’s Analytics Inc., Fannie Mae, Morgan Stanley and Barclays Plc. Those properties are in addition to houses that are vacant or that may soon be put on the market by owners.”

Looking Back:

One year ago, a survey from the National Association of Home Builders showed that buyers were unwilling to pay more for a new “green” home. DQNews reported that the total sales in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange Counties fell 10.8 percent from the previous month. Both Ben Bernanke and Bank of America believed the U.S. financial downturn was coming to an end. The Coopers Korpacz Real Estate Investor Survey estimated that U.S. commercial property would not recover until 2012.

Many predictions are being made regarding the economy and the housing market. Most of the articles have an overall positive outlook on the economy, while most had a negative outlook for the housing market. New delinquencies decreased 8.5% in August. The FDIC said 119 banks failed so far this year.

In The News:

CNBC - “No Double Dip, Stimulus Did Help: IMF Chief” (9-13-10)

“There is unlikely to be a double-dip recession, while the fact that stimulus spending was helpful in containing the crisis is undisputable, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), told CNBC Monday.”

Housing Wire – “Economist calls latest Basel 3 timeline ‘nonsense’” (9-13-10)

“The Basel Committee on Banking Supervision adopted new standards for the capital requirements of the world’s largest financial firms, mandating the banks hold capital equal to 7% of assets. As HousingWire reported in the Monday Morning Cup of Coffee, the committee increased the minimum common-equity requirement to 4.5% from 2% and stipulated banks hold a capital conservation buffer of 2.5% to withstand potential stress, raising the total common-equity requirement to 7%.”

Housing Wire – “Radian’s new delinquencies drop 8.5% in August” (9-13-10)

“Mortgage servicers reported 9,084 in new delinquent loans insured by Radian Group (RDN: 7.865 +3.49%), a mortgage insurer based in Philadelphia. It’s an 8.5% drop from the 9,930 of newly delinquent loans for Radian in July. Radian’s primary inventory of delinquent mortgages did fall to 137,374 in August, too, down from 138,015 delinquent mortgages in July.”

Housing Wire – “REITs outperform Barclays expectations, long term outlook positive” (9-13-10)

“Real estate investment trusts (REITs) outperformed analyst expectations in the first quarter of 2010, according to a weekly report released today by Barclays Capital. Week-over-week, the National Association of Realtors’ (NAR) composite REIT return index dropped 0.9% to 3,153.3. Despite the decrease, the index is 0.9% higher than one month ago and 33.7% higher than one year ago. The composite return index year-to-date is up 17.2% from 2,690.1 for the same period last year.”

Housing Wire – “JPMorgan analysts bearish on housing recovery” (9-13-10)

“JPMorgan Chase (JPM: 41.20 +3.62%) analysts lowered estimates for a recovery in the housing market between next year and 2014 because the expiration of the homebuyer tax credit slowed demand and overall economic malaise pushed some indicators lower in July.”

Housing Wire – “BofA’s Moynihan see 25% chance of double dip recession” (9-13-10)

“The discussion now is whether we might have a so-called double dip recession – although our experts think the chance of that is low… we’re now putting the chances of a double-dip at around 25%.”

Housing Wire – “Monday Morning Cup of Coffee” (9-13-10)

“At June 30, Horizon Bank had total assets of $187.8 million total deposits of $164.6 million. The FDIC said 119 bank have failed this year, including 23 in Florida. The FDIC recently said the number of banks on its “problem list” is at the highest level since 1993.”

Bloomberg - “U.S. Accelerates in 2011 as Demise of Consumer Is Exaggerated” (9-13-10)

“Debt payments as a share of disposable income fell to 12.46 percent in the first quarter from a peak of 13.96 percent in 2008 and are about in line with the 12.09 percent average of the last 30 years, based on Federal Reserve data. Berner sees the ratio falling to what he considers a sustainable range of 11 percent to 12 percent by year-end. This improvement will help the U.S. economy avoid a relapse into recession and put it on course for 3 percent growth next year, he said. The economy grew 1.6 percent in the second quarter.”

Bloomberg - “Fannie, Freddie Regulator Blames Mortgage-Loan Pools for Poor Performance” (9-13-10)

“Mortgage pools purchased as investments by Fannie Mae and Freddie Mac during the housing boom included more risky and poor-performing loans than those guaranteed by the government-backed firms, their regulator said. So-called private-label securities bought by the two firms from 2001 through 2008 had a bigger share of mortgages with adjustable interest rates and more borrowers with credit scores below 660, two indicators of loans at higher risk of default, the Federal Housing Finance Agency said in a report today.”

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.

Today’s News Synopsis:

The MBA’s second quarter survey shows the delinquency rate for mortgage loans on residential properties dropped to 9.85 percent. Freddie Mac reports that interest rates have dropped AGAIN to 4.36%. According to CoreLogic, 23 percent of residential homes with mortgages were in negative equity at the end of the 2nd quarter. Barclays Capital claims existing home sales decreased 30% last month.

In The News:

NAR - “Commercial Real Estate Remains Soft but Favors Business Expansion” (8-26-10)

“The SIOR index, measuring 10 variables, rose 2.8 percentage points to 41.0 in the second quarter, but remains well below a level of 100 that represents a balanced marketplace.  This is the third consecutive quarterly improvement after nearly three years of decline; the last time the commercial market was in equilibrium at the 100 level was in the third quarter of 2007.”

MBA - “Delinquencies and Foreclosure Starts Decrease in Latest MBA National Delinquency Survey” (8-26-10)

“The delinquency rate for mortgage loans on one-to-four-unit residential properties dropped to a seasonally adjusted rate of 9.85 percent of all loans outstanding as of the end of the second quarter of 2010, a decrease of 21 basis points from the first quarter of 2010, and an increase of 61 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased two basis points to 9.40 percent this quarter from 9.38 percent last quarter.”

Los Angeles Times – “Home loan rates drop yet again to record low” (8-26-10)

“Freddie Mac said rates for both 30-year and 15-year fixed mortgages dropped for the ninth time in the past 10 weeks. The mortgage giant’s weekly survey said the average rate that lenders were offering on the 30-year loan was 4.36% during the week that ended Thursday, down from 4.42% a week earlier and 5.14% a year ago. Borrowers would have paid 0.7% of the loan amount in upfront lender fees.”

Housing Wire – “Ranks of Underwater Borrowers Decline, Thanks to Foreclosure” (8-26-10)

“The number of Americans that owe more on their mortgages than their homes are worth declined during the second quarter of 2010, but not because home prices have improved. Instead, according to a new report, increased foreclosures have helped flush underwater borrowers out of the nation’s housing markets. According to a report from information services provider CoreLogic (CLGX: 17.77 +0.28%) released Thursday morning, 11 million — or 23% — of all residential properties with mortgages were in a negative equity position at the end of the second quarter.”

Housing Wire – “Amherst Sees HARP Failing Over Fees” (8-26-10)

“The Home Affordable Refinance Program, which started early last year, was supposed to ‘solve the key inhibitor to many borrowers refinancing in our current housing market – negative equity,’ the research firm’s MBS strategy group said in its most-recent mortgage insight report. However, high levels of due diligence and onerous fees for borrowers mean that those who should get the refi, likely won’t.”

Housing Wire – “Fed Buys $1.41bn of Treasuries” (8-26-10)

“The Federal Reserve purchased $1.41 billion of Treasury debt Thursday, including $1.14 billion of notes maturing in November 2021.”

Housing Wire – “Freddie Mac Mortgage Purchases and Issuances Fall in July, 2010 Total Pushes $207bn” (8-26-10)

“Mortgage purchases and issuance at government-sponsored enterprise (GSE) Freddie Mac fell to nearly $28.4bn, from $30.9bn in June — bringing the year-to-date totally to $207.4bn so far in 2010. Refinance-loan purchase and guarantee volume at Freddie fell to $18.1bn in July, from $19.1bn in June, according to the firm’s monthly volume summary (download here). The aggregate unpaid principal balance of the GSE’s mortgage-related investments decreased by $13.6bn.”

Housing Wire – “Barclays Capital Expects Home Prices to Dip Another 7%” (8-26-10)

“Existing home sales plummeted 30% in July after the homebuyer tax credit brought forward 300,000 to 600,000 of housing demand, assuming 4 million homes sell annually, according to research today from Barclays Capital.”

Housing Wire – “Weekly Initial Jobless Claims Down 6.1% to 473,000″ (8-26-10)

“The Labor Department said Thursday that seasonally-adjusted initial claims slid to 473,000 last week, down from an upwardly revised 504,000 for the previous week. Briefing.com consensus had expected claims to drop to 485,000.”

Looking Back:

One year ago, the NAR reported nearly one-third of all existing homes sales were either short sales or foreclosures. Home sales in July 2009 increased by 30 percent from January 2009. Office space availability increased in the second quarter of 2009 in Orange County.

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.

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

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.