The Norris Group Blog

California Real Estate Headline Roundup

Posts Tagged ‘Bernanke’

Newer Entries »

The Norris Group Real Estate News Roundup 5/20/10

Thursday, May 20th, 2010

Today’s News Synopsis:

According to MDA DataQuick, a total of 7,003 homes closed escrows in the nine-county Bay Area last month. CBIA reports that California families earning the median-income could have afforded 60.8 percent of the new and existing homes that were sold during the first quarter of 2010. Statistics from Freddie Mac show 30-year fixed-rate mortgage decreased 4.84 percent this week. CoreLogic predicts average national home prices will fall 0.5 percent in the next 12 months.

In The News:

DQNews - “Mixed results for Bay Area April home sales” (5-20-10)

“Last month a total of 7,003 homes closed escrows in the nine-county Bay Area, up 0.2 percent from 6,992 in March but down 1.9 percent from 7,139 in April 2009, according to MDA DataQuick of San Diego. On average, Bay Area sales have risen 4.2 percent between March and April each year since 1988, when DataQuick’s statistics begin. Last month’s sales tally was 24.5 percent below the April average of 9,278 sales since 1988, and was the second-lowest for an April since 1995.”

CBIA - “California Housing Affordability Increases in First Quarter, CBIA Announces” (5-20-10)

“Housing affordability in California increased overall in the first quarter of 2010, but 13 of the state’s 28 metropolitan areas included in the report saw decreases, the California Building Industry Association said today.  On a statewide basis, the HOI found that a family earning the median-income could have afforded 60.8 percent of the new and existing homes that were sold during the first quarter, up from 56.4 percent in the fourth quarter of 2009. The report also found that California is now home to seven of the top ten least affordable markets in the nation.”

CNN - “Problem bank list hits 775″ (5-20-10)

“The government’s list of troubled banks climbed to its highest level since 1992 in the first quarter, although the pace of growth moderated, according to a government report published Thursday. The numbers, published as part of a broader survey on the nation’s banking system by the Federal Deposit Insurance Corporation, revealed that the number of banks at risk of failing climbed to 775 during the first quarter.”

Orange County Register – “Mortgage rate at 5-month low” (5-20-10)

“30-year fixed-rate mortgage averaged 4.84 percent — down from last week when it averaged 4.93 percent and the lowest since Dec. 10. Last year at this time, the 30-year fixed averaged 4.82 percent.”

Inman - “4 markets where prices will fall hardest” (5-20-10)

“National home prices were up 1.7 percent in March when compared to a year ago, but will probably give back some of those gains in the year ahead with the expiration of the federal homebuyer tax credit, data aggregator CoreLogic said in releasing its latest home-price index. While 51 out of the 100 largest markets saw year-over-year price appreciation in March — up from 42 markets in February — CoreLogic predicts average national home prices will fall 0.5 percent in the next 12 months.”

Housing Wire – “New Survey Finds 59% of Homeowners Would Not Consider Strategic Default” (5-20-10)

“Of those homeowners surveyed by Harris Interactive, 59% said they would not consider walking away from their mortgage no matter how far underwater they sank. Harris conducted the survey of more than 2,500 adults, including 1,690 homeowners from May 10-12. The survey was conducted for the online foreclosure marketplaces, Trulia.com and RealtyTrac.”

Housing Wire – “FBI Mortgage Fraud Investigations Jump 400% in Five Years” (5-20-10)

“FBI investigations of mortgage fraud increased 400% in 2009, compared with five years earlier, according to an Office of Thrift Supervision (OTS) report on fraud and insider abuse (download here). The FBI investigated more than 2,100 mortgage fraud cases in 2009. The OTS said at least 63% of all pending FBI mortgage fraud investigations during fiscal year 2008 involved dollar losses of more than $1m each.”

Bloomberg - “Mortgage-Bond Yields Guiding Loans Decline to Six-Month Low” (5-20-10)

“Yields on Fannie Mae and Freddie Mac mortgage securities that guide home-loan rates fell to the lowest in almost six months, as the response of European authorities to the sovereign-debt crisis drove investors to the relative safety of U.S. government-related debt. Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds tumbled 0.10 percentage point to 4.05 percent as of 9:55 a.m. in New York, down from 4.67 percent on April 5 and the lowest since Nov. 30, according to data compiled by Bloomberg.”

Bloomberg - “Idle Capacity in U.S. Economy Keeps Fed Asset Sales on Hold” (5-20-10)

“Officials led by Chairman Ben S. Bernanke raised their forecasts for growth this year while predicting the rebound will be slower than past recoveries from deep recessions as consumers contend with elevated unemployment and a decline in home values. Some expressed concern the Greek debt crisis could shake U.S. financial markets, curbing growth.”

Looking Back:

One year ago, the NAR predicted that commercial real estate would remain week for the remainder of 2009. The House of Representatives voted 367 to 54 to pass the Helping Families Save Their Homes Act. Toll Brothers Inc., the largest U.S. builder of luxury homes, said fiscal second-quarter revenue fell 51 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 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.

Tags: , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 5/10/10

Monday, May 10th, 2010

Today’s News Synopsis:

Fannie Mae is asking for $8.4 billion in government aid. According to Fitch Ratings, Serious delinquencies among US Alt-A residential mortgage-backed securities (RMBS) declined in April. First American CoreLogic reports that underwater mortgages and borrowers with less than 5% home equity accounted for 28% of all residential properties. Statistics from Zillow show more than a fifth of U.S. mortgage holders owed more than their homes were worth in the first quarter.

Looking Back:

Mortgage Bankers Association – “Study: Americans Will Be Permanently Impacted by Recent Recession” (5-10-10)

“The historically slow recovery of the economy and lack of substantial job growth could cause negative, lasting effects on the current young generation and force many retirement age individuals to remain in the workforce, according to a study released today by the Mortgage Bankers Association (MBA). The impact of a higher unemployment rate for Americans aged 16 – 24 could have a lasting effect on lifetime earnings and attitudes toward risk and social policies. In addition, those nearing retirement are delaying retirement and reentering the labor force in an effort to rebuild some of the retirement wealth that was wiped out by the recession.”

San Francisco Chronicle – “Fannie Mae seeks $8.4B in aid after 1Q loss” (5-10-10)

“Fannie Mae has again asked taxpayers for more money — this time $8.4 billion — after reporting another steep loss for the first quarter. The taxpayer bill for rescuing Fannie and its sibling Freddie Mac has grown to $145 billion — and the final tally could be much higher.”

Housing Wire – “Alt-A RMBS Delinquencies Post First Decline in 4 Years” (5-10-10)

“Serious delinquencies among US Alt-A residential mortgage-backed securities (RMBS) declined in April for the first time in four years, according to the latest data from Fitch Ratings. Subprime RMBS delinquencies fell in the second straight month, and prime RMBS delinquencies rose slightly.”

Housing Wire – “Underwater Mortgages Stabilized in First Quarter: CoreLogic” (5-10-10)

“The number of borrowers with negative equity declined slightly in Q110, but underwater mortgages and borrowers with less than 5% home equity accounted for 28% of all residential properties, according to the latest data from CoreLogic. More than 11.2m, about 24% of all residential properties with mortgages were in negative equity at the end of Q110. That’s down slightly from 11.3m, or 24%, Q409. The state with the highest rate of negative equity mortgages continues to be Nevada, where 70% of all properties are underwater, followed by Arizona (51%), Florida (48%), Michigan (39%) and California (34%).”

Housing Wire – “Monday Morning Cup of Coffee” (5-10-10)

“Regulators closed four banks, bringing the running 2010 total to 68 failed banks so far. The closures, located in Arizona, California, Florida and Minnesota, are expected to cost the Federal Deposit Insurance Corp. (FDIC) Deposit Insurance Fund (DIF) a total $213.7m. Last week, regulators shut down seven banks at a cost of more than $7.33bn.”

Bloomberg - “Cemex, Vulcan Call Turn in Construction as Sales Rise” (5-10-10)

“A four-year slump in construction may be nearing an end, with the biggest U.S. building-material makers reporting higher monthly sales that have yet to spread industrywide. Cemex SAB, the largest U.S. cement producer, and Vulcan Materials Co., the top gravel supplier, just reported monthly volume increases for March and April, their first since 2006. The results exceeded estimates and may lead the Portland Cement Association, a trade organization that represents U.S. and Canadian companies, to increase its growth forecast this year, said Ed Sullivan, its chief economist.”

Bloomberg - “Fed Hinting on Mortgage-Bond Sales Brings Bernanke Tightening” (5-10-10)

“Words may speak louder than actions for Federal Reserve Chairman Ben S. Bernanke when the time comes to outline plans to raise interest rates and shrink the central bank’s balance sheet. Altering a pledge to keep short-term borrowing costs low or articulating plans to begin selling the $1.1 trillion in mortgage-backed securities it now holds will amount to a tightening of monetary policy because the announcements will send bond yields higher, raising borrowing costs, said Mitch Stapley, chief fixed-income officer at Fifth Third Asset Management in Grand Rapids, Michigan.”

Bloomberg - “Mortgage Holders Owing More Than Homes Are Worth Rise to 23%” (5-10-10)

“More than a fifth of U.S. mortgage holders owed more than their homes were worth in the first quarter as repossessions climbed to a record, according to Zillow.com. Twenty-three percent of owners of mortgaged homes were underwater during the period, up from 21 percent in the previous three months, the Seattle-based property data provider said today in a report. More than one in 1,000 homes were repossessed by lenders in March, the highest rate in Zillow data dating back to 2000.”

Looking Back:

One year ago,Campbell Communications reported only 23 percent of short sale transactions were being completed. Obama proposed making the Federal Reserve serve as a finance supercop.

Tags: , , , , , , , , , , , , , , , , , , , , , ,
Posted in News | 1 Comment »

The Norris Group Real Estate News Roundup 4/26/10

Monday, April 26th, 2010

Today’s News Synopsis:

The CIRB reports that permits were pulled for 3,714 total California housing units in March. Commercial mortgage delinquencies fell to 0.63% in Q1 of 2010. The MARI saw a 50 percent increase in appraisal fraud in 2009. Homeownership rates in Q1 of 2010 decreased to the lowest levels since 2000.

Looking Back:

CBIA - “Housing Starts Climb for Third Straight Month in March, CBIA Announces” (4-26-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,714 total housing units in March, up 4 percent from the same month a year ago and up 7 percent from February. Permits for single-family homes totaled 2,231, up 17 percent from March 2009 and up 24 percent from the previous month, while multifamily permits totaled 1,483, down 11 percent from a year ago and down 12 percent from February.”

Bloomberg – “Fed May Keep Rates Low as Tight Credit Impedes Small Businesses” (4-26-10)

“Fed Chairman Ben S. Bernanke said in an April 7 speech that while a U.S. economic recovery is under way, ‘we are far from being out of the woods,’ in part because of tight credit.”

Bloomberg - “Bankers Said ‘Anything’ to Get High Rating, S&P Ex-Analyst Says” (4-26-10)

“Just past midnight on May 3, 2005, Standard & Poor’s analyst Chui Ng e-mailed co-workers to broker a solution to demands by Goldman Sachs Group Inc. bankers that he said violated two or more of the ratings company’s internal guidelines. Goldman Sachs was adding $200 million in debt at the ‘last minute’ to a $1.5 billion bond pool called Adirondack Ltd., Ng wrote. That meant the New York investment bank would originate 13 percent of the pool itself, two-and-a-half times the 5 percent limit set by S&P.”

Housing Wire - “Xerox Aims to Lead Originators into Paperless Mortgage World” (4-26-10)

“The latest venture in mortgages for Xerox Corp. (XRX: 11.35 +0.27%) is a move to make the name synonymous with paperless electronic mortgage origination, according to the company. The company is now focusing efforts on its eVault, an off-site digital storage repository for electronic loan documents, as a way to try to grab more market share in paperless origination. Currently the company holds more than 35,000 mortgages in the vault. The software-as-a-service (SaaS) is offered on a per-loan basis, which the company said makes it more affordable for originators with varying levels of loan volume.”

Housing Wire – “California Commercial Mortgage Delinquencies Drop in Q110″ (4-26-10)

“In California, the delinquency rate of commercial mortgages fell to 0.63% in Q110, a 34-basis point (bp) drop from 0.97% at the end of 2009, according to the California Mortgage Bankers Association (CMBA). On a dollar basis, the delinquent rate reached 0.63%, which translates to a 0.29% delinquent rate on a loan-volume basis. Of the more than 6,400 commercial loans surveyed by the CMBA, 19 loans totaling $344.6m were more than 90 days delinquent. The survey included 16 mortgage banking firms and $54.7bn in commercial and multi-family loans.”

Housing Wire – “Appraisal Fraud Jumps 50% in 2009: MARI” (4-26-10)

“The Mortgage Asset Research Institute (MARI), whose subscribers represent 70% of the mortgage finance space, reports today appraisal fraud is taking a larger proportion of trickery alleged in suspicious activity reports (SARs) filed with the Financial Crimes Enforcement Network (FinCEN). In 2008, suspected appraisal/valuation fraud stood at 22% of mortgage fraud reports. In 2009, that jumped to 33%, said MARI in a conference call on its yearly results.”

Housing Wire – “Monday Morning Cup of Coffee” (4-26-10)

“Regulators closed seven banks Friday — all based in the state of Illinois — at a total cost to the Federal Deposit Insurance Corp. (FDIC) Deposit Insurance Fund (DIF) of nearly $974m.”

Housing Wire - “Homeownership Hits Lowest Rates Since 2000″ (4-26-10)

“Fewer Americans own homes in Q110 than in any quarter since the beginning of 2000, according to data from the Census Bureau. The seasonally adjusted homeownership rate fell to an average of 67.2% percent of qualifying Americans who own homes in Q110, dropping 1bp from 67.3% in Q409. It was the lowest rate since the 67.1% mark in the first quarter of 2000. The rate reached its height in Q105 at 69.2%, according to the Census.”

Looking Back:

One year ago, Existing, single-family home sales increased 63.8 percent in one month. 19.1 million homes stood unoccupied in the first quarter of 2009. Simon Property Group attempted to buy General Growth prior to its bankruptcy. Rent rates decreased in 19 of the 23 O.C. cities.

Tags: , , , , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 2/19/10

Friday, February 19th, 2010

Today’s News Synopsis:

According to the MBA, the delinquency rate for one-to-four unit residential properties decreased to 9.47 percent. President Obama is starting a $1.5 billion housing support program for California, Arizona, Nevada, Florida and Michigan. A homeowner mentality survey from Zillow shows that 20 percent of homeowners believe their homes decreased in value during 2009. The Federal Reserve recently bought $11.3bn in mortgage-backed securities from Freddie Mac, Fannie Mae, and Ginnie Mae.

In The News:

MBA - “Delinquencies, Foreclosure Starts Fall in Latest MBA National Delinquency Survey” (2-19-10)

“The delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 9.47 percent of all loans outstanding as of the end of the fourth quarter of 2009, down 17 basis points from the third quarter of 2009, and up 159 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 50 basis points from 9.94 percent in the third quarter of 2009 to 10.44 percent this quarter.”

CNN - “ Housing help for unemployed, underwater borrowers” (2-19-10)

“Under pressure to do more for troubled homeowners, President Obama announced Friday a $1.5 billion program to help borrowers in the five states hit hardest by the housing crisis. The initiative calls for pumping money into state housing agencies in California, Arizona, Nevada, Florida and Michigan to fund programs to prevent foreclosure for people who are unemployed or who owe more than their homes are worth.”

Housing Wire – “Some Homeowners Overly Cynical on Home Property Values: Zillow” (2-19-10)

“According to the quarterly survey, one in five, or 20%, of the 2,200 homeowners surveyed believed their property value increased during 2009. That’s the lowest percentage in seven quarters. In reality, 28% of homes increased in value during the year, according to Zillow’s Fourth Quarter Real Estate Market Reports.”

Housing Wire – “Capital Returns on Commercial Real Estate Reach Record Low: IPD” (2-19-10)

“The report monitors the trends in underlying market value and returns of $76.5bn of assets held by real estate funder managers in the US. Capital returns fell 23.9% in 2009 for a total decline of 33.4% from the peak of real estate values in December 2007. Capitalization rates – or the ratio between the net income from the asset and its original price – sunk another 140 bps over 2009 to 7.1%, the highest level in six years.”

Housing Wire – “Fed MBS Purchases 96% Complete With Another $11bn” (2-19-10)

“The Fed bought a total of $11.3bn in mortgage-backed securities (MBS) – $4.47bn Freddie Mac (FRE: 1.23 +0.82%) MBS, $3.97bn Fannie Mae (FNM: 1.02 0.00%) MBS and $2.85bn Ginnie Mae MBS, according to a summary of purchases. The New York Fed also sold $300m of MBS in the same week, bringing the net purchases to $11bn, the same as last week.”

Housing Wire – “Fannie Mae Approves Four New Mortgage Insurers” (2-19-10)

“Fannie Mae (FNM: 1.02 0.00%) approved four new mortgage insurers for conventional first mortgage loans, according to a letter sent to lenders. With the new approvals, Fannie is ready to accept loans with mortgage insurance from Essent Guranty, MGIC Indemnity Corp., PMI Mortgage Assurance Co. (PMAC) and Republic Mortgage Insurance Company of North Carolina.”

Bloomberg - “Fed Discount-Rate Move Signals End to Emergency Steps” (2-19-10)

“The Federal Reserve Board sent its most explicit signal yet that the emergency supply of liquidity to financial markets is done and the most aggressive monetary policy easing in its 96-year history will eventually reverse. Chairman Ben S. Bernanke and his colleagues at the Board of Governors raised the rate charged to banks for direct loans by a quarter-point to 0.75 percent, effective today. It was the first increase in the discount rate since June 2006.”

Inman - “Home-price declines ease in December” (2-19-10)

“National home prices were down 3.7 percent from a year ago in December, a ‘significant improvement’ over November’s 5.3 percent decline, according to a home-price index compiled by First American CoreLogic.”

Realty Times – “Clean Homes Show Better–Five Areas To Scrub to Make Yours Sparkle” (2-19-10)

“Tile. When you’re showing your house, hopefully, you’ll get lots of foot traffic. This, however, can lead to very dirty flooring and grout. Yes, you can supply those footies and the sign placed by the door asking buyers to remove their shoes or put the footies on before entering your home, but, the truth is, not all will comply. Still, the tile and the condition of the grout will matter to buyers should they decide to make an offer. There are certainly many products to get the dirt out of those tiny grout lines; one that I’ve had success with is called Heavy Duty Acidic Cleaner for tile.”

Looking Back:

One year ago, the NAR reported that broker activity decreased by 6 percent in the 4th quarter of 2008. Research from the NAHB showed that 62.4 percent of all new and existing homes that were sold in the final quarter of 2008 were affordable to citizens earning the median income. Statistics collected by DQNews displayed that the median home price in the Bay Area dropped to approximately $300,000. California’s legislative branch approved of a plan for tax increases, spending cuts and borrowing to close a $40 billion deficit.

Tags: , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 1/4/09

Monday, January 4th, 2010

Today’s News Synopsis:

Forty percent of national home sales in 2009 were foreclosures or short sales. Economists and real estate experts are complaining that Obama’s $75 billion foreclosure prevention program has damaged the market. The CIRB reports that builder permits for single-family houses fell 3.5 percent. According to The Institute for Supply Management, most companies showed an increased rate of expansion in December.

In The News:

San Francisco Chronicle – “Foreclosures weigh on home appraisals” (1-4-09)

“Roughly 40 percent of all home sales this year were foreclosures or short sales, meaning the property sold for less than the mortgage. In some markets, like Las Vegas and Phoenix, they’ve hit more than 50 percent.”

New York Times – “U.S. Loan Effort Is Seen as Adding to Housing Woes” (1-4-09)

“The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.”

Market Watch – “Low rates didn’t cause bubble, Bernanke says” (1-3-09)

“it was lax supervision of toxic mortgages by the Fed and other bank regulators — along with excessive flows of capital around the globe — that inflated the bubble, setting up the world economy for what may have been the worst economic crisis in modern history, Bernanke said.”

Bloomberg - “GMAC Said to Discuss U.S. Aid Package of $3 Billion or More” (1-4-09)

“GMAC Inc., the home and auto lender that counts the U.S. government as the largest stakeholder, is discussing with the Obama administration a third bailout of $3 billion to $4 billion, said a person familiar with the matter.”

Bloomberg - “Companies in U.S. Expand at Fastest Pace Since 2006″ (1-4-09)

“Companies in the U.S. expanded in December at the fastest pace in almost four years, signaling the economic recovery is gaining speed heading into 2010. The Institute for Supply Management-Chicago Inc. said today its barometer rose to 60, exceeding the most optimistic estimate of economists surveyed by Bloomberg News and the highest level since January 2006. The gauge, in which readings greater than 50 signal expansion, showed companies boosted production and employment as orders climbed.”

Orange County Register – “Did housing’s troubles double?” (1-4-09)

“Well, things don’t look so harsh when your spyglass is 10 years long and short-run bumps and bruises are smoothed out. The median selling price for all residences in Orange County in the Zeros was $431,000, roughly double the pricing of the 1990s.”

Orange County Register – “O.C. builders near worst year since WW II” (1-4-09)

“Through November, local building permits for single-family homes filed by developers fell 3.5% from what had been the slowest year since World War II, the Construction Industry Research Board reports.”

Tags: , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 12/07/09

Monday, December 7th, 2009

Today’s News Synopsis

The MBA reports that delinquency rates increased during the third quarter for most mortgage investor groups. Bernanke claims that the recovery should continue for at least a year, but the U.S. still has some trouble to overcome. Six more banks were shut down Friday, which will cost the FDIC a total of $2.384billion.

In The News:

Mortgage Bankers Association – “MBA Report Shows Third Quarter 2009 Commercial and Multifamily Mortgage Performance Falls in Weakened Economy” (12-7-09)

“Delinquency rates continued to increase in the third quarter for most commercial/multifamily mortgage investor groups, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.”

MSNBC - “Bernanke: Too soon to tell if recovery will last” (12-7-09)

“The Fed chief repeated his belief that the recovery will continue at least into next year. But he cautioned that the economy is confronting some ‘formidable headwinds’ — including a weak job market, cautious consumers and still-tight credit.”

Housing Wire – “TARP Costs Narrow as Treasury Sheds Capital One Investment” (12-7-09)

“Initial projections put the cost of the financial stabilization efforts at more than $500bn, which factored into the President’s budget in February. Of that projection, $300bn was expected directly from TARP, and another $250bn was included in the budget to cover needed resources beyond TARP’s $700bn.”

Housing Wire – “Fannie Prepays Plunge ‘Unexpected’ 6%: BarCap” (12-7-09)

“The prepayment rate among Fannie Mae (FNM: 0.91 -1.09%) 30-year notes slipped 6% ‘unexpectedly’ after the government-sponsored entity (GSE) suspended buyouts related to the Home Affordable Modification Program (HAMP), according to monthly commentary by Barclays Capital. The buyout delay in this month’s reporting period for Fannie indicates a spike in buyouts — and the prepayment speed — next month as mortgages are modified and withdrawn from mortgage-backed security (MBS) pools, according to researchers.”

Housing Wire – “Monday Morning Cup of Coffee” (12-7-09)

“Regulators shut down six banks Friday, bringing to total number of failed institutions to 130 this year. The total estimated cost to the Federal Deposit Insurance Corp.’s (FDIC) deposit insurance fund is $2.384bn.”

Housing Wire – “Mortgage Insurers Deny 20-25% of Claims: Moody’s” (12-7-09)

“Mortgage insurance rescission rates jumped to 20-25% in recent quarters, relative to historical 7% averages. Moody’s said mortgage insurers rescinded about $6bn of claims since January 2008 and could rescind another $2bn to $4bn of claims during the next few years.”

Orange County Register – “O.C. mechanics liens drop 23%” (12-7-09)

“The Real Estate Research Council of Southern California reports that in the third quarter the number of Orange County mechanics liens filed were 730 – that’s -23.4% vs. a year ago. Mechanics liens are typically filed when contractors working on a real estate property — home or commercial, new or old — go unpaid for their services.”

Orange County Register - “Hear why O.C. property tax collections jumped” (12-6-09)

“Considering the wave of the ugly economic news out there, we were surprised to learn that early Orange County property tax collections were up $54 million as the Dec. 10 deadline for first installment payments neared.”

Looking Back:

One year ago, the delinquency rate for one-to-four-unit residential properties stood at 6.99 percent. 500,000 jobs were cut within one month’s time. The U.S. Treasury offered a multi-billion dollar proposal to lower the interest rate on 30-year mortgages to 4.5 percent.

Tags: , , , , , , , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 11/3/09

Tuesday, November 3rd, 2009

Today’s News Synopsis:

According to Experian, approximately 588,000 borrowers walked away from their homes last year. In Q3 of 2009, California accounted for over 25 percent of the nation’s foreclosure activity. MIT reports that commercial real estate transaction prices rose by 4.4 percent in Q3 of 2009.

In The News:

USA Today – “More walk away from homes, mortgages”
(11-3-09)

“Walking away from a mortgage is serious business — it can knock 100 points off your credit score and make you ineligible for a new mortgage for seven years. Yet, about 588,000 borrowers walked away from homes last year, double the number in 2007, according to a recent study by credit-scoring firm Experian and management consultants Oliver Wyman.”

DSNews - “California AG Calls on Lenders to Outline Option ARM Modification Plans” (11-3-09)

“In the third quarter, California accounted for more than 25 percent of the nation’s foreclosure activity, with 250,000 homes receiving foreclosure filings statewide. California homeowners hold 58 percent of the country’s option ARMs originated between 2004 and 2008, Brown said. Approximately one million of these mortgages will reset nationwide in the next four years, resulting in higher payments and a dramatic increase in foreclosures, he said. ”

Wall Street Journal – “Five Reasons the U.S. Doesn’t Need More Home-Buyer Perks” (11-3-09)

“Subsidies raise prices, and house prices are already too high. The house subsidy has little value as economic stimulus. The benefits of stimulus spending are unproven.”

Housing Wire – “Commercial RE Prices Rise 4.4% in Q309: MIT” (11-3-09)

“Transaction prices rose 4.4% on commercial real estate properties sold in Q309 by major institutional investors, according to the MIT Center for Real Estate (MIT/CRE).”

Housing Wire – “Fannie Raises Lenders’ Net Worth Requirement Ten-Fold” (11-3-09)

“Fannie Mae (FNM: 1.15 +11.65%) updated its eligibility requirements for lenders wanting to sell and service residential first mortgages, according to the new selling guide released Friday. To do business with Fannie Mae, lenders must now have a net worth of at least $2.5m — 10 times the previous required net worth — plus a dollar amount equal to 0.25% of the outstanding principal balance of any Fannie Mae portfolio it services.”

Bloomberg - “Bernanke Housing Plan May Prompt Calls to Extend Aid” (11-3-09)

“Federal Reserve Chairman Ben S. Bernanke is gambling that come March, he can stop the purchases of mortgage-backed securities that have propped up the U.S. housing market. Congress may have other ideas. The central bank says it must eventually withdraw its unprecedented economic stimulus to avoid a surge of inflation as a recovery takes hold. Plans to buy $1.25 trillion of housing debt are the centerpiece of its program to pull the nation out of the worst recession since the 1930s.”

Tags: , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 9/28/09

Monday, September 28th, 2009

Today’s news Synopsis:

The Federal Reserve has printed $860 billion in mortgage-backed securities. Under the new U.S. Treasury Department program,  states that provide  mortgages to low-income borrowers may receive up to 35 billion dollars in Federal aid. According to SoCal MLS, distressed sales accounted for 40 percent of all Orange County sales in July.

In The News:

Los Angeles Times – “Don’t bank on your home as an ATM” (9-27-09)

“The economic fundamentals that drove home values up in the 20th century — sustained growth in incomes, population and household wealth — have been sputtering for decades. Though the future isn’t necessarily bleak, economists say there’s no reason Americans should continue to see a home purchase as a path to wealth.”

San Francisco Chronicle – “Be wary of buying into homeowner association” (9-27-09)

“While there are advantages to living in a place where all the owners share the cost of operating and maintaining amenities individual owners couldn’t afford on their own, it’s also true that condo and homeowner associations obligate all members with substantial financial and legal liabilities.”

Los Angeles Times – “Beyond Fannie and Freddie” (9-27-09)

“Homeownership may be the American dream, but lately it has been an expensive one for taxpayers. The deduction for mortgage interest cost about $80 billion in lost revenue in 2009, and a tax credit for home buyers in this year’s stimulus bill will add $15 billion to the tab. Taxpayers have provided Fannie Mae and Freddie Mac, two giant, troubled mortgage finance companies, nearly $100 billion that they have little chance of recouping. Mounting defaults also threaten the Federal Housing Administration, the agency that guarantees many home mortgages, raising the odds for yet another multibillion-dollar federal bailout. Meanwhile, the Federal Reserve has effectively been printing money to reduce mortgage interest rates, using the new dollars to buy more than $860 billion in mortgage-backed securities.”

Bloomberg - “Housing Agencies May Get $35 Billion in Treasury Aid” (9-28-09)

“State housing agencies in the U.S. that provide mortgages to low-income borrowers would get as much as $35 billion in federal aid under a new U.S. Treasury Department program, people familiar with the matter said. The program would provide up to $15 billion in fresh funding for as long as three years and would purchase as much as $20 billion in tax-exempt mortgage bonds issued by state- sponsored housing finance agencies through the end of this year, a person familiar with the matter said. The program may be announced as early as Sept. 30, said the person, who didn’t want to be named because the plans haven’t been made public.”

Bloomberg - “Negative Bond Returns Converge With Mortgage Miracle” (9-28-09)

“Federal Reserve Chairman Ben S. Bernanke has some good news for investors: Treasury bondholders will lose money for the first time in 10 years amid an unprecedented decline in the gap between the interest rate on 30-year mortgages and government notes, signaling an end to the worst financial crisis since the Great Depression.”

Orange County Register – “Calif. has nation’s highest mortgage burdens” (9-28-09)

“Do we need a Census Bureau survey to tells us how costly it is to own a home in California? Well, the 2008 edition of the American Community Survey does deeply detail California’s steep homeowning costs.”

Orange County Register – “Buying non-foreclosed homes surges in O.C.” (9-28-09)

“But the Southern California Multiple Listing Service estimated that short sales accounted for around 18% of all Orange County resales from February through July. Overall, “distressed” sales (foreclosures and short sales combined) accounted for four out of every 10 sales in July, by SoCal MLS’s math.”

Inman - “Loan shoppers: their own worst enemy?” (9-28-09)

“The proposed new disclosures will be required at the point of application. This is a great idea, if it is properly implemented. Proper implementation means that the information lenders must submit at the point of application will help consumers select from among loan providers. Stated somewhat differently, the information must reveal differences between lenders that will cause borrowers to prefer one over another.”

Looking Back:

One year ago, Citigroup chose to buy Wachovia’s banking business.  Morgan Stanley sold 21 percent of its stock to Japan’s Misubishi UFJ. Permits for new housing construction in Orange County dropped by 94 percent in one month.

Tags: , , , , , , , , , , , , , ,
Posted in News | No Comments »

Newer Entries »