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California Real Estate Headline Roundup

Posts Tagged ‘beige book’

The Norris Group Real Estate News Roundup 3/2/11

Wednesday, March 2nd, 2011

Today’s News Synopsis:

The MBA reports mortgage applications fell 6.5% last week. HUD said mortgage delinquencies declined in January. Wells Fargo predicts California economic growth will remain slow this year.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (3-2-11)

“Mortgage applications decreased 6.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending February 25, 2011.”

Sign On San Diego – “San Diego, Orange counties lead state growth” (3-2-11)

“Job growth in San Diego and Orange counties will help lead California into economic recovery, but the statewide growth rate will remain ‘painfully slow,’ according to a study released Tuesday by the economics group at Wells Fargo Securities.”

Inman - “HUD ramps up grants to fair housing groups” (3-2-11)

“Federal housing regulators are boosting grant funding by 48 percent to fair housing groups and nonprofit agencies that educate the public about housing and lending discrimination laws and help catch violators.”

Bloomberg - “BofA, Citigroup Say Mortgage Database Draws Scrutiny in Foreclosure Probe” (3-2-11)

“Earnings at Bank of America, the largest U.S. lender, may suffer materially if using Mortgage Electronic Registration Systems or MERS is found to be invalid, according to a regulatory filing last week. Citigroup and PNC said fines or other penalties may result from investigations into MERS and allegations of faulty foreclosure practices.”

Office of Thrift Supervision – “Thrift Industry Reports First Annual Profit Since Financial Crisis Began” (3-1-11)

“The U.S. thrift industry posted a profit of $6.6 billion in 2010, the first profitable year for the industry since 2006, the Office of Thrift Supervision (OTS) reported today.”

Housing Wire – “CMBS delinquency slows most since financial crisis, still hits record high” (3-2-11)

“The delinquency rate on commercial mortgage-backed securities increased 5 basis points to 9.39% in February, the smallest monthly gain since the financial crisis in 2008, according to analytics firm Trepp.”

Housing Wire – “Obama administration sees unsettled home prices keeping market down” (3-2-11)

“In its latest housing scorecard released by the Department of Housing and Urban Development and the Treasury Department, the administration said mortgage delinquencies in January continued to decline from record levels seen at the beginning of 2010.”

Housing Wire – “Fed’s Beige Book shows muted results in housing, finance” (3-2-11)

“Overall economic activity continued to expand at a modest to moderate pace in January and early February, although the housing and financial markets outlook was muted, according to the Federal Reserve’s Beige Book.”

Bloomberg - “Treasury Lobbies Congress to Save Housing Assistance Programs” (3-2-11)

“Congress is weighing whether to eliminate programs that have helped fewer homeowners than promised. About 1.5 million households have begun trial mortgage modifications through HAMP, down from initial projections of 3 million to 4 million.”

Looking Back:

One year ago, 68 percent of U.S. citizens supported the government’s involvement in the housing market. Fannie Mae announced plans to buy 150,000 to 200,000 delinquent loans from MBS trusts. Economist Jan Hatzius believed we would not see an interest rate increase any time in the near future. Realtors advised that staging is a critical component of selling a home.

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.

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The Norris Group Real Estate News Roundup 10/20/10

Wednesday, October 20th, 2010

Today’s News Synopsis:

Mortgage application volume decreased 10.5% from last week, said the Mortgage Bankers Association. RealPoint reports CMBS delinquencies increased 1.3% in August. The Federal Reserve’s Beige Book shows economic growth continued in September. Fannie Mae expects total economic growth for this year to equal approximately 2.5%.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (10-20-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 15, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 10.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index also decreased 10.5 percent compared with the previous week.”

North State Building Industry Association – “CA Mechanic’s Lien Law – Be Current on the Changes, eff 1/1/11″ (9-1-10)

“This presentation will provide critical updates to builders, suppliers, and subcontractors regarding changes in California Mechanic’s Lien Law that will take effect beginning January 1, 2011. The importance of the changes cannot be overstated – claimants will lose their lien rights if the changes are not taken into account on active construction projects after the first of the coming year.”

Los Angeles Times – “Investors pressure Bank of America to buy back bad mortgages” (10-20-10)

“Several major investment firms are moving to force Bank of America Corp. to buy back bad mortgages that were issued by Countrywide before the lender was acquired by the financial giant.”

Housing Wire – “Architectural billings positive for first time since 2008: AIA” (10-20-10)

“The Architectural Billings Index indicated a growth in design activity in September for the first time since January 2008. The index reached 50.4, according to the American Institute of Architects which released its data Wednesday. The index was 48.2 in August and has increased for four consecutive months.”

Housing Wire – “CMBS unpaid balances reach $62.19 billion, CRE CDO delinquencies up” (10-20-10)

“In its monthly delinquency report, Realpoint said the delinquent unpaid balance for CMBS last month rose 1.3% to $62.19 billion from $61.39 billion in August. The gain of $801.2 million in September is higher than the previous two months, but below the average of $3.14 billion a month during the first half of 2010, according to Realpoint. A year ago, the delinquent unpaid balance was $31.73 billion.”

Housing Wire – “Beige Book shows modest growth in economy” (10-20-10)

“The economy continued growing between September and early October but at a modest pace, according to the Federal Reserve. Still, the Beige Book, which gathers anecdotal evidence of economic conditions in the dozen Fed districts nationwide, showed lingering weakness in the housing market with lower home sales in most districts.”

Housing Wire – “Fannie Mae puts 2011 economic growth at 2.5%” (10-20-10)

“In its October economic outlook, the government-sponsored entity’s economics and mortgage market analysis group said the economic outlook remains clouded. The GSE sees growth of less than 2% as 2010 closes, with modest gains in the first half of next year and a ‘strengthening’ in the second half of next year.”

Bloomberg - “Apartment Rents Rise in U.S. West as Foreclosures Boost Apartment Demand” (10-20-10)

“Apartment rents rose across the U.S. West and South for the third straight quarter as record foreclosures boosted demand for rental housing, RealFacts said. The average asking rent climbed to $958 a month from $950 in the second quarter, according to a report released today by the Novato, California-based research company. It declined 0.7 percent from a year earlier.”

Looking Back:

One year ago, RealtyTrac’s Rick Sharga believed that approximately 450,000 to 500,000 repossessed properties had not yet been placed on the market. Default notices in California had decreased by 10.3 percent from the previous quarter and had increased by 18.5 percent from the previous year. The Commerce Department reported that housing and apartment construction increased by .5 percent with 1 month.

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.

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The Norris Group Real Estate News Roundup 9/8/10

Wednesday, September 8th, 2010

Today’s News Synopsis:

The California Housing Finance Agency is offering 4 percent mortgages to low and moderate income homebuyers. The MBA’s weekly survey shows mortgage application volume decreased 1.5% this week. According to CoreLogic, 39.6% of the subprime loans are 60 days delinquent.

In The News:

Inman - “California, FHA offer 4% loans” (9-8-10)

“The California Housing Finance Agency is teaming up with the Federal Housing Administration to offer 30-year fixed-rate loans to low- and moderate-income first-time homebuyers at below-market rates. With mortgage rates already at historic lows, eligible borrowers could lock a CalHFA-FHA loan at around 4 percent.”

Mortgage Bankers Association – “Mortgage Purchase Applications Up, Refinance Applications Fall Slightly in Latest MBA Weekly Survey” (9-8-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September 3, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.9 percent compared with the previous week.”

Housing Wire – “40% of subprime mortgages stand delinquent, can prime be next?” (9-8-10)

“CoreLogic reports 2,376,120 American subprime mortgages are still active in the market in June, down 12.5% from a year ago. As of June, 39.6% of the subprime loan market is 60 days delinquent — 35% of that is 90 days delinquent, 13% of that are now in foreclosure and 3.8% of mortgages are real estate owned.”

Housing Wire – “Amherst: modified Ginnie Mae loans boost buyouts” (9-8-10)

“The reissuance of modified Ginnie Mae loans will boost transition rates, buyouts, and subsequently increase prepayment speeds on new, lower-coupon pools. Amherst Mortgage Insight analysts said avoiding Ginnie Mae interest-only mortgages is a good idea, as ‘conventionals are a better bet.’ The firm’s MBS strategy group also advises investors to review Ginnie Mae spec pools”

Housing Wire – “Beige Book: economy increasing at slower rate than prior periods” (9-8-10)

“The Fed said home sales continued to slide, hindering construction activity, as well. Most districts reported very weak or declining home sales during the period that were attributed to the expiration of the homebuyer tax credit. Residential construction decreased in most districts during the period because of weak demand, according to the Fed.”

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.

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The Norris Group Real Estate News Roundup 4/14/10

Wednesday, April 14th, 2010

Today’s News Synopsis:

The U.S. Treasury reports more than 1.4 million borrowers have been offered trial modifications under HAMP. The MBA’s weekly survey shows that mortgage application volume decreased by 9.6 percent from last week. Banks required over 25 percent more time to foreclose a property in in California last month than in March 2009. According to statistics from the Federal Reserve’s Beige Book, overall economic activity increased in nearly all parts of the country since March.

In The News:

MBA - “MBA’s Story Testifies on Revisions to the Home Affordable Modification Program” (4-14-10)

“According to Treasury, more than 1.4 million borrowers have been offered trial modifications under HAMP.  One million borrowers are in active modifications, of which almost 230,000 represent permanent modifications.  An additional 100,000 permanent modifications are pending borrower acceptance.  And servicers have substantially increased the pace with which permanent modifications are being done.”

MBA - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (4-14-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 9, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 9.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 9.5 percent compared with the previous week.  This is the third lowest Market Index recorded in the survey since the end of June 2009.”

Inman - “Foreclosure process slows in California” (4-14-10)

“It took banks 27.9 percent longer, or 225 days, to foreclose on a property in California last month than it did in March 2009, and 0.45 percent longer than it did in February, according to data tracked by foreclosure data company ForeclosureRadar.com.”

CNN - “10 foreclosures for every home saved” (4-14-10)

“The Obama administration’s mortgage-modification program is not keeping pace with the deluge of foreclosures hitting the market, a government watchdog found. Only 168,708 homeowners have received long-term mortgage modifications under the president’s plan, as of February, a small fraction of the 6 million borrowers who are more than 60 days behind on their loans, according to the Congressional Oversight Panel’s latest report, released Wednesday.”

Mercury News – “Mortgage market: Government asks for advice on how to improve it” (4-14-10)

“The administration has not drafted any formal proposals to reform the housing finance system. Mortgage finance companies Fannie Mae and Freddie Mac nearly collapsed in September 2008. Propping them up has cost taxpayers about $126 billion so far. Among the questions the Treasury Department is asking are: What level should the federal government play in stabilizing the housing market? What kind of lending standards should be established? How should consumers be protected from abusive practices?”

Housing Wire – “Fed Beige Book Sees Increase in Housing Activity” (4-14-10)

“Overall economic activity increased in nearly all parts of the country, with many districts reporting increased activity in residential housing markets, according to the latest edition of the Federal Reserve’s Beige Book. The St. Louis district was the only one to not report an increase in overall economic activity, indicating a thaw may be in the works since the March edition of the Beige Book showed the toll taken by harsh winter weather.”

Housing Wire – “Donovan: Eliminating GSEs May Threaten Fragile Recovery” (4-14-10)

“Hasty action to quickly change the composition of the GSEs or to eliminate them would further drive down this housing market and cause taxpayer losses to increase”

Housing Wire – “One Year Down the Road, COP Says Success Still Escapes HAMP” (4-14-10)

“The private sector has found less success in modifying mortgages through HAMP than through other in-house strategies. According to testimony by Bank of America (BAC: 19.40 +3.91%) Home Loans president Barbara Desoer to the House Financial Services Committee this week, of BofA’s 14m mortgages, 1.4m are 60 or more days delinquent. All told, BofA completed 560,000 of its own modifications to those borrowers. Similar success escapes government-led initiatives as even though 391,000 borrowers at BofA were offered a HAMP mod, only 33,000 are now permanent through HAMP.”

Bloomberg - “FDIC Plans $1.97 Billion Sale of Loans From 22 Seized Banks” (4-14-10)

“The Federal Deposit Insurance Corp. is seeking bids on a $1.97 billion portfolio of loans from 22 seized banks, pushing the agency’s structured asset sales this year beyond the 2009 total. The sale consists of 1,739 loans mostly tied to commercial real estate, with borrowers late on payments for almost half the portfolio, according to a preliminary announcement obtained by Bloomberg News.”

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

Wednesday, March 3rd, 2010

Today’s News Synopsis:

Bruce Norris estimated that lenders may lose up to $2.1 to 3.8 trillion before all the bad loans are taken off their books. According to the MBA, mortgage application volume increased from last week. The FHFA reports that Orange County home values increased by 6.38 percent in 2009. Last year, nearly 1,400 lawsuits were filed against lenders by homeowners in foreclosure.

In The News:

Press Enterprise – “Loan losses from home foreclosures could more than double” (3-3-10)

“Lenders who already have realized $1.5 trillion in losses due to home foreclosures could see their losses mount to an estimated $2.1 trillion to $3.8 trillion before all the bad loans are wiped off their books, a Riverside real estate expert told a gathering over the weekend. Bruce Norris, a real estate analyst, investor and principal of the Riverside-based Norris Group, told more than 400 real estate brokers and investors meeting in Costa Mesa Saturday that he had compiled these figures from data and estimates he obtained from ForeclosureRadar.com, Bloomberg Financial, Goldman Sachs, the International Monetary Fund, RGE Monitor and T2Partners.”

Mortgage Bankers Association – “Mortgage Refinance Applications Increase in Latest MBA Weekly Survey” (3-3-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 26, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 14.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 15.5 percent compared with the previous week.”

Orange County Register – “O.C.: Hottest U.S. housing market?” (3-3-10)

“Orange County home values — by one FHFA index that derives values from purchase records — rose 6.38% in 2009. That’s tops among the 25 major U.S. markets tracked by this methodology. Yes, O.C. is No. 1! We’re followed by Denver (+5.48%); Houston (+3.71%); and Pittsburgh (+3.26%).”

Sign On San Diego – “Hefty tax bill may hit those who lost home” (3-3-10)

“With less than six weeks before taxes are due, an estimated 16,000 former homeowners statewide will owe $15 million in extra income taxes this year and $29 million through 2012.”

Mercury News – “Increasing numbers of Californians are suing lenders to avoid foreclosures” (3-3-10)

“In the last five years, the number of foreclosure lawsuits filed in federal court in California has ballooned — like an exploding adjustable-rate mortgage — from only 29 statewide in 2005 to nearly 1,400 last year.”

Housing Wire – “Winter Weather Slows Residential Real Estate Growth: Beige Book” (3-3-10)

“In the January Beige Book, all but two Fed districts reported increased activity or improved conditions, with Philadelphia and Richmond seeing mixed results. Residential real estate markets remained weak or softened further in the New York, Atlanta, and Chicago districts and there was little change in the San Francisco district, the Federal Reserve Board said.”

Orange County Register – “Why loan mods & short sales take so long” (3-3-10)

“Hard to collect all necessary documents from borrower/owner. This may be because the banks never seem to receive the documents until they’ve been faxed in 5 or 6 times. It may be because it takes the borrower/owner or agent some time to respond to requests for documents.”

Inman - “90% of agents down on HAMP” (3-3-10)

“A mere 10 percent of real estate agents think the Obama administration’s Home Affordable Modification Program (HAMP) is reducing foreclosures in their market, according to a survey released Wednesday by real estate media and marketing provider Homes and Land. The company’s Market Pulse Survey Report asked more than 100,000 real estate agents nationwide to participate in a 10-question survey to gauge the state of housing in local markets. Nearly 5,800 agents responded; 51 percent had been a Realtor for more than 10 years. The company conducted the survey in February.”

Looking Back:

One year ago, Citigroup developed a plan which allowed unemployed homeowners to decrease their monthly payment to a minimum of $500. The NAR reported that home sales decreased by 7.7 percent within a month’s time. Bernanke claimed that the federal government needed to increase its fiscal involvement in the banking system. The government launched its $1 trillion TALF program.

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The Norris Group Real Estate News Roundup 1/13/10

Wednesday, January 13th, 2010

Today’s News Synopsis:

According to the CBIA, condominium sales were 39 percent higher from last year. The MBA’s weekly survey shows that mortgage loan application volume increased by 14.3 percent from last week. Jumbo residential mortgage-backed securities increased to 9.2 percent from December 2008 to December 2009. All but two of the Federal Reserve districts reported increased activity or improved conditions.

In The News:

CBIA - “California New-Home Market Dips Slightly in November, CBIA Announces” (1-13-10)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 4 percent below November 2008, representing a less impressive result than last month’s year-over-year increase, but was nevertheless an improvement from most months in 2009. During November, 1,860 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 1,934 in November 2008. Sales of single-family homes were down by 18 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – were up 8 percent and sales of condominiums were 39 percent higher than a year ago thanks to strong sales at projects in the Los Angeles and San Diego areas.”

Mortgage Bankers Association – “Mortgage Refinance Applications Increase While Purchase Applications Remain Flat in Latest MBA Weekly Survey” (1-13-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 8, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 14.3 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 66.0 percent compared with the previous week, which was a shortened week due to the New Year’s holiday.”

San Francisco Chronicle – “State adopts greenest building codes in U.S.” (1-13-10)

“The new code, dubbed Calgreen, will take effect next January and requires builders to install plumbing that cuts indoor water use, divert 50 percent of construction waste from landfills to recycling, use low-pollutant paints, carpets and floorings and, in nonresidential buildings, install separate water meters for different uses. It mandates the inspection of energy systems by local officials to ensure that heaters, air conditioners and other mechanical equipment in nonresidential buildings are working efficiently. And it will allow local jurisdictions, such as San Francisco, to retain their stricter existing green building standards, or adopt more stringent versions of the state code if they choose.”

Housing Wire – “Prime Jumbo RMBS Delinquencies Swell to 9.2%: Fitch” (1-13-10)

“Delinquency of more than 60 days among prime jumbo residential mortgage-backed securities (RMBS) nearly tripled to 9.2% in December 2009, from 3.2% at the end of 2008, according to Fitch Ratings.”

Housing Wire – “GSEs Could Lose $448bn of MBS Guarantee Business, Says Amherst” (1-13-10)

“Losses on the combined credit-guarantee books of government-sponsored enterprises (GSEs) Freddie Mac (FRE: 1.41 +2.17%) and Fannie Mae (FNM: 1.14 +1.79%) could reach 9.6% – or $448bn – according to market analysis by Amherst Securities Group.”

Housing Wire – “Housing Sales Up, Prices Remain Steady: Beige Book” (1-13-10)

“All but two Fed districts reported increased activity or improved conditions, with Philadelphia and Richmond seeing mixed results. In the December 2 edition of the Summary of Commentary on Current Economic Conditions, commonly called the Beige Book, eight districts reported an uptick in their perspectives economy. The book is published eight times a year and is a nationwide economic indicator compiled from the 12 Fed districts.”

Housing Wire – “Government to Earn Billions on Bailouts” (1-13-10)

“The US Treasury Department expects profits of at least $19bn from bank investment programs under the Troubled Asset Relief Program (TARP), according to market commentary Wednesday by the American Bankers Association (ABA). Originally projected to cost $76bn according to the ABA, the outlook for TARP bank programs was updated in December in anticipation of actual profits.”

Housing Wire – “FinestExperts Ranks Top 2010 Real Estate Investment Markets” (1-13-10)

“FinestExpert.com named Dallas-Fort Worth as the hottest real estate investment market for 2010. After analyzing more than 10,000 real estate markets to identify stable, growth-oriented for investors, San Francisco-based FinestExpert.com formed its first top-20 hottest real estate investment market list for 2010.”

Housing Wire – “Cancelled Foreclosures Outnumber Sales in California: ForeclosureRadar” (1-13-10)

“The amount of California foreclosure cancellations increased 26.5% in December to 13,243, primarily due to loan modifications. And for the first time this number overtook foreclosures reaching real-estate owned (REO) status, according to ForeclosureRadar, which tracks foreclosure activity in the state. In December, the amount of foreclosures heading back to the banks, REO, dropped 11.9% from the previous month to 12,437. Significant declines in foreclosure discounts by lenders drove the decrease in sales to third parties, according to the report.”

Bloomberg - “Obama to Announce Fee on 20 Banks to Recoup TARP” (1-13-10)

“President Barack Obama will announce tomorrow his intention to impose a fee on roughly 20 of the country’s largest banks and financial institutions to help recoup taxpayer bailout money and trim the federal budget deficit. Obama will outline his proposal to raise as much as $120 billion at 11:45 a.m. local time at the White House, Obama’s press secretary, Robert Gibbs, told reporters. Gibbs said the president’s economic team has worked on a structure to prevent the levy from being passed onto consumers.”

Bloomberg - “Real Estate Bull Laub Sees Unprecedented Workout From Bad Debt” (1-13-10)

“Kenneth Laub has been through three commercial real estate boom and bust cycles during almost five decades as a broker and consultant to corporations such as Hess Corp. and International Paper Co. He says the current downturn will overshadow all of the others, Bloomberg Markets reports in its February 2010 issue.”

Looking Back:

One year ago, the NAHB encouraged congress to use a portion of the $700 billion bailout to increase credit for home purchases, and to stem foreclosures. California lost a total of 144,000 people from 2008 to 2009. Ben Bernanke warned that a fiscal stimulus would not cause an economic recovery. In November of 2008, 4 percent of homes were bought with adjustable rate mortgages.

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The Norris Group Real Estate News Roundup 10/21/09

Wednesday, October 21st, 2009

Today’s News Synopsis:

The MBA reports that mortgage applications decreased by 13.7 percent on a seasonally adjusted basis from one weak earlier. According to Altos Research, asking prices increased by 1.5 percent in Los Angeles. The Federal Reserve believes that commercial real estate will not begin to recover for at least 9 more months. Lehman has announced that it intends to begin funding home loans again.

In The News:

Los Angeles Times – “Feared flood of foreclosures in California may be averted” (10-21-09)

“Signs are emerging that a much-feared escalation of California home foreclosures may not happen, as banks respond to government pressure and scale back their repossessions of troubled properties. Statewide, the number of homes taken back by lenders dropped sharply in the three months ended Sept. 30, falling 37% over the same period a year earlier, when foreclosures were at an all-time high.”

Wall Street Journal – “Housing Starts Post Anemic Rise” (10-21-09)

” Housing starts increased 0.5% in September to a 590,000 seasonally adjusted annual rate, the latest piece of data to show the housing market is slowly stabilizing with help from low prices and government tax credits. Separately, the Labor Department reported wholesale prices for finished goods fell 0.6% in September, while the ‘core’ measure that excludes volatile food and energy prices fell 0.1%, a sign that despite the tepid economic recovery, producers still have little leeway to raise prices.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (10-21-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 16, 2009. This week’s results include an adjustment to account for the Columbus Day holiday. The Market Composite Index, a measure of mortgage loan application volume, decreased 13.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 22.4 percent compared with the previous week.”

Housing Wire – “Mortgage Revenue Boosts US Bancorp Q309 Earnings” (10-21-09)

“The bank experienced a $215m increase in mortgage banking revenue compared to Q308 that it credited to loan production volume of $14.8bn and loan applications totaling $15.5bn. Residential mortgage lending increased 1.8% from Q209 to Q309.”

Housing Wire – “Home Prices Tick Down 0.5% in September, Says Altos” (10-21-09)

“Of the 26 markets Altos Research examines, asking prices increased in only five, including Los Angeles, which experienced a 1.5% increase, the largest of the 26 markets. Phoenix had the largest monthly decrease of 3.7%.”

Housing Wire – “Little Chance of CRE Recovery Until 2H10: Beige Book” (10-21-09)

“While residential real estate and manufacturing sectors of the economy are reporting positive improvements, commercial real estate remains one of the weakest sectors. According to the Federal Reserve Beige Book, any evidence of a recovery in the sector is unlikely for at least nine more months”

Housing Wire – “Mortgage Insurer OKs 93% of HARP Requests” (10-21-09)

“PMI Mortgage Insurance Co. approved 93% of its requests for a mortgage workout through the Home Affordable Refinance Program (HARP). HARP allows nearly 5m homeowners with loans owned or guaranteed by Fannie Mae (FNM: 1.23 +9.82%) or Freddie Mac (FRE: 1.39 +12.10%) the opportunity to refinance into more affordable monthly payments.”

Housing Wire – “Morgan Stanley Posts Profit on Strong Investment Banking” (10-21-09)

“Morgan Stanley (MS: 34.08 +4.80%) posted a net $757m profit, or $0.38 per share, in Q309 — its first quarterly profit in a year — as a 74% increase in investment banking profit neutralized $400m in real estate-related losses.”

Housing Wire – “KeyCorp Loses Net $438m, Raises Loan Loss Allowance” (10-21-09)

“KeyCorp (KEY: 6.28 -3.98%), parent company of Key Bank, recorded a net loss of $438m in Q309, compared to a $48m loss in Q308, as the bank increased its provision for loan losses, write-downs of certain real estate related investments, higher costs associated with other real estate owned (REO) assets, and the write-off of certain intangible assets.”

Housing Wire – “UFA Calls Foreclosure Drop in 2010″ (10-21-09)

“After a 30% climb over the last four years, foreclosures will decline in 2010, according to research from University Financial Associates (UFA), a risk management firm based in Ann Arbor, Mich”

Bloomberg – “Lehman Said to Return to U.S. Mortgages Through Unit” (10-21-09)

“Lehman Brothers Holdings Inc., the investment bank brought down by the U.S. mortgage crash after 158 years, is set to return to funding home loans through its Aurora Loan Services unit, people familiar with the matter said.”

Bloomberg – “Bank of America Sells First Republic to Buyout Group” (10-21-09)

“Bank of America Corp., which is raising capital after getting $45 billion in U.S. rescue funds, agreed to sell First Republic Bank to a group led by private- equity-firms General Atlantic LLC and Colony Capital LLC.”

Orange County Register – “Brightwater builder skips more loan payments” (10-21-09)

“California Coastal Communities, the homebuilder that’s developing 356 homes overlooking the Bolsa Chica wetlands, announced that it has missed $759,000 in loan payments due this month, an event that could trigger bankruptcy unless its lenders restructure its debt. It’s the second time this month that the Irvine-based homebuilder said it has missed loan payments. The firm behind the Brightwater development announced three weeks ago that it skipped a $1.7 million debt payment due at the end of September.”

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