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The Norris Group Real Estate News Roundup 12/30/09

Wednesday, December 30th, 2009

Today’s News Synopsis:

A survey from Bank of America shows that only 12 percent of the institutions who received TARP relief believe that the program positively impacted their operations. Barclay’s estimates that credit availability may increase during the next 6 to 12 months. Default Research reports that pre-foreclosure filings in California decreased in several counties. Statistics from Freddie Mac show that mortgage purchases decreased by 13% in November.

In The News:

Housing Wire – “Only 12% of Bank Execs Think TARP Leaves Positive Impact” (12-30-09)

“While larger financial institutions complete full repayment of the Troubled Asset Relief Program (TARP), as is the case with the $45bn repaid last week by Citi (C: 3.32 -1.48%) and Wells Fargo (WFC: 26.82 +0.52%), a bank survey completed by the Bank Administration Institute (BAI) claims only 12% of respondents feel the program positively impacted their operations.”

Housing Wire – “Origination Funding May Increase as Credit Restrictions Ease in 2Q10, Analysts Predict” (12-30-09)

“A recent set of research focusing on 2010 strategies for investors of agency mortgage-backed securities (MBS) by analysts at Barclays Capital finds that credit availability for mortgage originations may increase in the next six to 12 months. However, the situation will remain tight in the next three to six months, they add, as the market grapples with ongoing risk aversion sentiments, loan repurchases stabilization and new regulatory procedures that will need this time to take hold.”

Housing Wire – “Foreclosure Notices Drop in Major Counties: Default Research” (12-30-09)

“The number of pre-foreclosure filings in California, which include notices of default and notices of trustee sales, dropped across several counties in November, according to statistics from Default Research, which tracks the notices. The hard-hit Los Angeles County had a 10% decline from last month to 3.08% in November. Orange County, where 3.4% received a filing, had a drop of 8% in November. In Riverside County, 9.2% received a pre-foreclosure filing, a 13.7% decline from October.”

Housing Wire – “NAMB Criticizes Regulation Z Amendment” (12-30-09)

“In a letter to the Federal Reserve Board, the National Association of Mortgage Brokers (NAMB) said that certain aspects of the proposed rule to amend Regulation Z would impede market competition. Section 404 of the Helping Families Save their Home Act of 2009 took effect in May and requires a 30 day notice to mortgage borrowers of their loans being transferred for securitization. Called Regulation Z, the Fed’s interim final rule enforces the requirement under the Act.”

Housing Wire - “Fannie’s Serious Delinquencies Nears 5% in November” (12-30-09)

“After mortgage giant Freddie Mac (FRE: 1.42 -5.33%) reported a 13% drop in mortgage purchases in November, Fannie Mae (FNM: 1.16 -7.20%) shows its book of business declined at an annualized rate of 6.7% in the same month, according to its monthly summary”

Housing Wire – “List of HAMP Servicers Moves Past 100″ (12-30-09)

“The US Treasury Department added four new servicers to the Home Affordable Modification Program (HAMP), raising the total number of participants to 103, according to the latest Troubled Asset Relief Program (TARP) transaction report.”

Bloomberg - “GMAC Said to Discuss U.S. Aid Package of $3 Billion or More” (12-30-09)

“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.”

Orange County Register – “Tough market eyed for high-end housing” (12-30-09)

“There is a chance this is not the bottom for the all price ranges! However, under $500,000 looks to be in pretty good shape, although appreciation will continue to be very faint! Above $500,000 it will continue to be a tough market, as there are very few move-up buyers from the lower price ranges with money to support the higher price structure”

Looking Back:

One year ago, the Case Schiller index showed that home prices dropped by 18 percent in 20 major U.S. cities. Lockhart estimated that the government would need to provide lower borrowing costs to Fannie Mae and Freddie Mac. The Federal Reserve forecasted that mortgage modifications would be significantly hindered by second mortgages. Fannie Mae’s portfolio of mortgages increased by 9.3 percent in one month.

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The Norris Group Real Estate News Roundup 12/23/09

Wednesday, December 23rd, 2009

Today’s News Synopsis:

Homebuilders pulled 46 percent fewer permits from November of last year. According to the Mortgage Bankers Association, mortgage application volume decreased by 10.7 percent from last week. Freddie Mac purchased 13 percent fewer mortgage purchases from the previous month. Equifax reports that HELOC originations fell 36 percent from one year ago.

In The News:

CBIA - “Housing Production Posts Decrease in November, CBIA Announces” (12-13-09)

“According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,540 total housing units in November, down 12 percent from October, and down 46 percent from November 2008. Permits for single-family homes totaled 1,710, down 20 percent from the previous month, but up 18 percent from the same period last year, while multifamily permits totaled 830, up 9 percent from October but down 74 percent from a year ago.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (12-23-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending December 18, 2009.  The Market Composite Index, a measure of mortgage loan application volume decreased 10.7 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 10.9 percent compared with the previous week.”

Housing Wire – “BofA Sues MGIC Over Unpaid Insurance Claims” (12-23-09)

“Bank of America’s (BAC: 15.18 -0.98%) Countrywide Home Loans unit sued Mortgage Guaranty Investment Corp. (MTG: 5.7798 -9.12%) over allegations the Wisconsin-based mortgage insurer denied millions of valid claims.”

Housing Wire – “Freddie Buys 7% More Refi Mortgages in November” (12-23-09)

“Mortgage giant Freddie Mac (FRE: 1.3295 -1.52%) reported $27.9bn in mortgage purchases and issuances in November, a 13% drop from $32.1bn in October, according to a monthly summary of the agency’s portfolio.”

Housing Wire – “HUD Delays New FHA Appraiser Guidelines” (12-23-09)

“According to an FHA memo obtained by HousingWire, the January 1, 2010 implementation of Mortgagee Letter (ML) 2009-28 (download here) won’t take affect until February 15, 2010. The new FHA regulations are similar to those implemented by the government-sponsored enterprises (GSEs) to ensure appraiser independence with the Home Valuation Code of Conduct (HVCC).”

Housing Wire – “Equifax: HELOC Origination Down 36%” (12-23-09)

“Origination of new home equity lines of credit (HELOC) accounts is down 36% from year-ago levels, Equifax (EFX: 31.28 -0.26%) said. There were 75,600 HELOC accounts originated in September 2009, down from 117,800 in September 2008, according to the Atlanta-based credit bureau’s most recent monthly credit trend report, derived from Equifax’s nearly 200m US consumer credit files.”

Bloomberg - “U.S. Economy: Spending and Incomes Climb, New-Home Sales Drop” (12-23-09)

“American consumers’ spending and incomes climbed in November, indicating the biggest part of the economy is poised to strengthen as the labor market recovers. Purchases rose 0.5 percent as households took advantage of discounts on autos and electronics, figures from the Commerce Department showed today in Washington. The gain was smaller than anticipated as unseasonably warm weather depressed utility use. Another report showed new-home sales unexpectedly fell as potential buyers were discouraged by the scheduled expiration of a tax credit. The tax break was later extended.”

Bloomberg - “General Growth Has Deals to Restructure $11.6 Billion of Debt” (12-23-09)

“General Growth Properties Inc., the second-largest U.S. mall owner, has won approval from creditors and a federal court to restructure loans totaling $11.6 billion, according to a lawyer.”

Looking Back:

One year ago, existing home sales fell 8.6 percent from October to November. Mortgage default filings against homeowners decreased for the first time in 3 years. Moorlach predicted that 10 municipal bankruptcies would occur in 2009. The U.S. economy shrank by 0.5 percent from the previous month.

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The Norris Group Real Estate News Roundup 12/10/09

Thursday, December 10th, 2009

Today’s News Synopsis:

According to RealtyTrac, foreclosure activity decreased  by 8 percent in November. Hanley Wood Market Intelligence reports that Orange County builders had their first positive month in October, after 13 months of contract declines. A survey from HomeGain shows that 48 percent of agents and brokers believe that home prices will stay the same, and 24 percent believe that prices will increase.  Data from the U.S. Treasury Department shows that 31,382 of the 1 million three-month modifications have become permanent.

In The News:

DSNews - “Foreclosure Activity Recedes for Fourth Straight Month: RealtyTrac” (12-10-09)

“The foreclosure tide appears to be subsiding, according to the latest numbers from RealtyTrac. The company said Thursday that foreclosure activity fell 8 percent in November, compared to October – it’s the fourth consecutive month that RealtyTrac’s data has shown a decrease in foreclosure filings.”

CBIA - “California New-Home Market Breaks into Positive Territory, CBIA Announces” (12-10-09)

“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 25 percent above October 2008, a strong improvement from the lingering year-over-year decline last month and represents the first notable increase since the start of the housing downturn. During October, 2,294 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 1,838 in October 2008. Sales of single-family homes were up by 4 percent, while sales of townhomes and ‘plexes’ – duplexes, triplexes, etc. – were up 36 percent and sales of condominiums were 94 percent higher than a year ago thanks to strong sales at projects in the Los Angeles and San Francisco areas.”

Orange County Register – “Losing streak ends for O.C. builders” (12-10-09)

“Hanley Wood Market Intelligence says after 13 straight months of annual declines in new home sales contracts, Orange County builders recorded their first up month in October. According to the Costa Mesa research firm, homebuyers signed 90 contracts to buy a new Orange County home that month, up 13.9% from October 2008.”

Inman - “Survey: Hopeful on home prices” (12-10-09)

“Forty-eight percent of agents and brokers surveyed think home prices will stay the same and 24 percent think prices will go up, the company reported. That’s a slight increase from the third-quarter survey, when those numbers were 46 percent and 23 percent, respectively. This marks a major change from HomeGain’s first-quarter survey when 36 percent thought prices would remain flat and 11 percent thought prices would increase. The survey had 928 respondents.”

Housing Wire – “30,000 Trial HAMP Mods Go Permanent” (12-10-09)

“Of the 1m homeowners who have been offered three-month trial modification under the Home Affordable Modification Program (HAMP), 31,382 have received a permanent modification, according to from the US Treasury Department.”

Housing Wire – “Mortgage Volume to Decline in 2010, Says Dorado” (12-10-09)

“Mortgage origination volume will decline next year compared to 2009 levels, but the use of software-as-a-service (SAAS) applications will rise, San Mateo, Calif.-based SAAS developer Dorado Corporation said in its projections for next year. Dorado projects more than 30% of mortgages created next year will be originated with SAAS applications, which generally work as Web-based tools a developer hosts on its own servers and distributes access through subscription licenses.”

Housing Wire – “Treasury Used $364bn of TARP funds in 2009″ (12-10-09)

“The Treasury Office of Financial Stability (OFS) used $364bn of the $700bn available funds, mostly in investments according to the report, and $73bn of the TARP funds have already been repaid. Bank of America last week committed to repaying the $45bn it received through the program.”

Housing Wire - “Mortgage Rates Rise off Record Lows” (12-10-09)

“Freddie Mac’s (FRE: 1.12 +0.90%) survey put the 30-year fixed-rate mortgage (FRM) at 4.81% with an average 0.7 point for the week ending Dec. 10, up from the previous week when it was a record low average of 4.71%. A year ago, Freddie Mac put the 30-year FRM at 5.47%.”

Bloomberg – “Wells Fargo Cuts as Much as 30 Percent in Principal” (12-10-09)

“Wells Fargo & Co., the bank that gained a portfolio of option adjustable-rate mortgages when it bought Wachovia Corp. last year, cut the principal for delinquent borrowers in some loans by as much as 30 percent. Wells Fargo has forgiven an average of $46,000 in principal, or 15 percent, for the 43,500 option-ARM loans it has modified this year through September, said Franklin Codel, chief financial officer at the bank’s home-lending unit.”

Looking Back:

One year ago, Orange County tax collectors reported that property tax collections decreased by $145 million. One hundred twenty-seven financial companies received preliminary approval for $60.4 billion from TARP.

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The Norris Group Real Estate News Roundup 11/30/09

Monday, November 30th, 2009

Today’s News Synopsis:

Edward Pinto expects 20 percent of FHA’s mortgage loans to default. The Federal Reserve bought $16 billion worth of mortgage-backed securities last week. According to Michael Barr, Over 650,000 mortgage modifications are currently being processed, and over 375,000 borrowers will receive permanent modifications by the end of this year. A survey from Barclay’s shows that as a U.S. citizen’s net worth increases so does the proportion of their wealth invested in real estate.

In The News:

CNBC - “Fannie Mae to Tighten Lending Standards” (11-26-09)

“Fannie Mae plans to raise minimum credit score requirements next month and limit the amount of overall debt that borrowers can carry relative to their incomes”

The Daily Reckoning – “Federal Housing Administration Encourages More Bad Mortgage Loans” (11-26-09)

“An astounding 20 percent of the Federal Housing Administration’s $725 billion portfolio of mortgage loans will go into default as the result of the agency’s recent campaign to subsidize first-time homebuyers with little cash and weak credit. That prediction comes from an industry insider who has seen it all happen before: former chief credit officer of Fannie Mae, Edward Pinto, who recently testified before a House committee on the gathering storm of FHA mortgage defaults.”

Orange County Register – “Banks forced to buy back more loans” (11-26-09)

“Banks had to buy back $7.1 billion in defaulted single-family loans in the third quarter to reimburse mortgage investors, up from $1.9 billion in the previous quarter. Federal Deposit Insurance Corp. Call Report information shows that most of the buyback demands fell on JPMorgan Chase and Bank of America. Chase repurchased $2.7 billion in defaulted loans and BoA repurchased $2.3 billion to satisfy investor demands.”

Finance My Money – “FDIC too broke to Takeover Banks? No Bank Failure Friday on Black Friday. Can 5,300 Employees Deal with $5.3 Trillion in Deposits?” (11-30-09)

“The Federal Deposit Insurance Corporation (FDIC) was hammered this week when a third quarter report demonstrated that the FDIC was running in the red to the sum of $8.2 billion. This is troubling since the FDIC protects deposits in member banks up to $250,000 and funds covered by the deposit insurance fund (DIF) are over $5.3 trillion, this amount is over one-third of our nationwide GDP. The FDIC as of Q1 of 2009 has 5,381 employees.”

San Francisco Chronicle – “Gov’t increases pressure on mortgage industry” (11-30-09)

“The Treasury Department said Monday it will withhold payments from mortgage companies that aren’t doing enough to make the changes permanent. Officials will monitor the largest of the 71 participating mortgage companies via daily progress reports. The goal is to increase the rate at which troubled home loans are converted into new loans with lower monthly payments. At the end of October, more than 650,000 borrowers, or 20 percent of those eligible, had signed up for trials lasting up to five months.”

Inman – “Non-investors get Fannie REOs first” (11-27-09)

“Fannie Mae has launched a new program that’s intended to give public entities and buyers looking for a home to live in, rather a property to flip, a first crack at homes Fannie has foreclosed on. Under Fannie Mae’s ‘First Look’ initiative, only offers from buyers who intend to be owner occupants and buyers using public funds will be considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed.”

Housing Wire – “Fed Continues Slower Agency MBS Purchases” (11-30-09)

“The Federal Reserve continued its slower mortgage bond purchases, buying up $16bn of mortgage-backed securities (MBS) from government-sponsored entities in the week ending November 25. The Fed’s purchases shifted more toward Freddie Mac (FRE: 1.03 -6.36%), with $6.5bn of Freddie MBS purchased this week, from $5.9bn last week. The Fed bought $6bn from Fannie Mae (FNM: 0.88 -6.38%), compared with $4.55bn last week. The Fed also bought $3.5bn from Ginnie Mae this week, according to details released by the New York Fed.”

Housing Wire – “FHA Proposes Lenders Maintain $2.5m Net Worth” (11-30-09)

“Federal Housing Administration (FHA)-approved lenders could be required to hold increased net worth, meet stronger approval criteria and be held responsible for the actions of the mortgage brokers they do business with, if a recently proposed FHA rule is enacted. The rule is designed to reduce risks to the single-family insurance fund, which finances the FHA guarantees of mortgages in case of default. The FHA reported to Congress recently the insurance fund dipped below the Congressional-mandated 2% capital reserve threshold.”

Housing Wire – “375,000 HAMP Trials to Go Permanent, Treasury Says” (11-30-09)

“Under HAMP, the Treasury allocates capped incentives to participating servicers for the modification of loans on the verge of foreclosure. According to the latest report, more than 650,000 trials modifications are underway. Saxon Mortgage Services leads all servicers by providing trials to 44% of its eligible portfolio, according to the report. More than 375,000 borrowers are on track for a permanent modification by the end of the year, according to Michael Barr, assistant secretary for financial institutions at the Treasury.”

Bloomberg – “Wealthy Investors Plan to Buy More Real Estate, Barclays Says” (11-30-09)

“Twice as many people plan to raise their investment in commercial and residential property as intend to reduce it, the Barclays Wealth unit said in an e-mailed statement today. The richer the individual, the greater the proportion of wealth is placed in real estate, the survey found.”

Orange County Register – “Irvine home listings drop along with temps” (11-30-09)

“As of last Wednesday, there were 461 active homes for sale in Irvine, with an expected market time of 2.06 months, according to a biweekly report done by Steven Thomas of Altera Real Estate. That’s a benchmark tracking how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made.”

Looking Back:

One year ago, the CIRB reported that the value of non-residential building in 2008 had reached a total of $1.3 billion. Evan Gentry of G8 Capital predicted that Orange County would need another five years before real estate began to appreciate again. New home sales decreased by 18 percent in the West during October of 2008.

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The Norris Group Real Estate News Roundup 11/25/09

Wednesday, November 25th, 2009

Today’s New Synopsis:

The MBA’s survey shows that mortgage applications decreased by 4.5 on a seasonally adjusted basis from last week. Freddie Mac’s survey shows that the 30-year FRM decreased by 0.7 points from the previous week. Standard & Poor’s, Moody’s, and Fitch are being sued for inflating ratings.

In The News:

Mortgage Bankers Association - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (11-25-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November 20, 2009.  The Market Composite Index, a measure of mortgage loan application volume, decreased 4.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5.8 percent compared with the previous week.”

Housing Wire – “30-Year Fixed Mortgage Rates at Historic Lows” (11-25-09)

“Freddie Mac’s (FRE: 1.12 -0.88%) weekly survey put the 30-year FRM at 4.78% with a 0.7 point, down from last week when it was 4.83% and one year ago when it was 5.97%. This week’s rate ties the record for lowest ever in the weekly survey’s history, which was previously reached twice in April this year.”

Housing Wire – “Fannie’s MBS Issuance Slides 31% in October” (11-25-09)

“Fannie’s gross mortgage portfolio declined at an annualized rate of 27.8% and stood at $771.4m at the end of the month, according to the monthly summary”

DSNews - “Rating Agencies Face Lawsuit for Allegedly Misleading MBS Investors” (11-24-09)

“Cordray is suing Standard & Poor’s, Moody’s, and Fitch for allegedly providing inflated ratings of mortgage-backed securities (MBS) in exchange for lucrative fees from the securities issuers the agencies say they were objectively evaluating. The lawsuit was filed Friday in a U. S. District Court on behalf of five Ohio public employee retirement and pension funds. Cordray says the case is not intended to take on the status of a class-action lawsuit.”

DSNews - “Bank of America Helps 100,000 Homeowners Avoid Foreclosure” (11-24-09)

“In an effort to help borrowers with Countrywide subprime and option-ARM mortgages avoid foreclosure, Bank of America created its National Homeownership Retention Program (NHRP), providing mortgage relief to 100,000 eligible homeowners in just 10 months. In the third quarter alone, more than 31,000 customers received assistant through the NHRP, according to the bank’s quarterly progress report.”

Bloomberg - “Sales of New Homes in U.S. Rise to Highest Since 2008″ (11-25-09)

“Purchases of new homes in the U.S. rebounded more than anticipated in October as buyers rushed to take advantage of a government tax credit before it expired. Sales rose 6.2 percent to an annual pace of 430,000, the highest level since September 2008, the Commerce Department said today in Washington. The median sales price fell 0.5 percent and the number of unsold homes reached a four-decade low. ”

Bloomberg - “Fed Officials Watch Asset Prices for Signs of ‘Excessive Risk’” (11-25-09)

“Federal Reserve policy makers said for the first time that their decision to cut interest rates to zero may be fueling undue financial-market speculation even as they called the dollar’s decline ‘orderly.’ The Federal Open Market Committee said its policy of keeping rates low might cause ‘excessive risk-taking’ or an ‘unanchoring of inflation expectations,’ according to minutes of its Nov. 3-4 meeting released yesterday.”

Bloomberg - “First American Flips Real Estate Stocks to Beat Fund Rivals” (11-25-09)

“John Wenker and Jay Rosenberg, managers of First American Real Estate Fund, buy and sell stocks more often than their peers, a strategy that helped them outperform 98 percent of rivals in the past decade. The $1.1 billion fund’s turnover ratio, a measure of how often its holdings are traded, is 150 percent, according to data from Morningstar Inc. That compares with an average of 104 percent for all real estate funds. ”

Realty Times – “Internet Stealth Auctions Protect Brand, Generate New Homes Sales” (11-25-09)

“Brown needed to sell his five models. He hired an internet marketing company to help him, then challenged them to design a program around a ‘call to action.’ The company, SaleAMP, suggested the developer give new home buyers what resale real estate thrives on: the opportunity to make an offer- but to do it quietly, fast and with internet marketing thrust at full throttle.”

Realty Times – “Short Sale Sellers Need To Guard Against ‘Double Whammy’ By Bank and I.R.S.” (11-25-09)

“Bad enough that a short sale involves the loss of one’s home with no equity to show for it, and a credit negative that may last for years; it also has the potential to produce two very bad after-effects. One is that the lender, or the lender’s assignee, may continue to pursue the beleaguered seller for the remainder of the debt. The other is that the I.R.S. may come knocking on the seller’s door, seeking tax on the amount of debt that was unpaid. ”

Looking Back:

One year ago, a survey from AARP showed that 25 percent of baby boomers desired to move from their current home. The MBA reported that 32.9 percent of all mortgage applications were government-insured. Total home sales in 2008 increased by 17 percent from 2007.

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The Norris Group Real Estate News Roundup 11/9/09

Monday, November 9th, 2009

Today’s News Synopsis:

A survey of 1,500 registered voters shows that most citizens are still pessimistic towards California’s financial future. Default notices doubled in Los Altos, Greenbrae and Alamo from 2008 to 2009. Zillow reports that the number of under water mortgages decreased in the U.S. decreased by 2 percent in the third quarter.

In The News:

Los Angeles Times – “California’s best years have passed, voters say” (11-8-09)

“In a survey of 1,500 registered voters, 80% say the state is on the wrong track. Respondents express little confidence in state politicians and candidates, even as support for Obama remains high.”

San Francisco Chronicle – “Default notices rising in upper echelon ZIPs” (11-8-09)

“In upscale communities such as Los Altos, Greenbrae and Alamo, where median prices top $1 million, about twice as many households received default notices from January to September as in the same period in 2008, according to recorders’ office data compiled by MDA DataQuick, a San Diego real estate research firm.”

Yahoo - “Why the new $6,500 homebuyer tax credit is wrong” (11-9-09)

“Congress and President Obama keep throwing money at the housing industry, hoping its revival will also revive the economy. The industry itself pines for the halcyon days of McMansions on every block and home prices that never fall. The latest example of this government largess: the extension and expansion of a tax credit for home buyers – $8,000 for first-time buyers and $6,500 for those living in homes at least five years – in a bill signed by the president Friday.”

DSNews - “Five More Community Banks Shuttered” (11-9-09)

“On Friday evening, the FDIC stepped in to help shut down San Francisco-based United Commercial Bank (UCB), the largest institution to be closed last week, whose failure is expected to cost the agency and estimated $1.4 billion. Last year, the Treasury gave $299 million in Troubled Asset Relief Program (TARP) funds to UCB’s holding company.”

Housing Wire – “Amherst Sees $476Bn of Non-Agency MBS Non-Performing” (11-9-09)

“The count of non-performing and re-performing loans within non-agency or private-label mortgage-backed securities (MBS) slipped 0.48% to 2.36m in October, from 2.37m in September, according to Amherst Securities Group. The firm now sees $965.4bn of private-label MBS in performing status the end of October, $476.5bn of MBS non-performing and $115.6bn of MBS re-performing.”

Housing Wire – “More Lenders Raise Prime Mortgage Standards: Fed” (11-9-09)

“The portion of lenders that increased standards for prime residential mortgages and revolving home equity lines of credit increased slightly this quarter, according to the Federal Reserve’s October 2009 Senior Loan Officer Opinion Survey on Bank Lending Practices.”

Housing Wire – “BofA Lends $96bn of First Mortgages in Q309″ (11-9-09)

“During the quarter, BofA originated $96bn in first mortgages for nearly 450,000 borrowers purchase homes or refinance mortgages. During the first nine months of the year, the bank said its originated $292bn in first mortgages for more than 1.3m borrowers.”

Housing Wire – “Treasury Denies Fannie’s Request to Transfer Housing Tax Credits” (11-9-09)

“After posting a $19.8bn quarterly net loss, Fannie asked its conservator, the Federal Housing Finance Agency (FHFA), to submit the request on its behalf. FHFA also requested on Fannie’s behalf another $15bn draw on the Senior Preferred Stock Purchase Agreement with the Treasury, to cover Fannie’s net worth deficit as of September 30.”

Bloomberg - “Fewer U.S. Homeowners Owe More Than Properties Are Worth” (11-9-09)

“The number of U.S. homeowners who owe more than their properties are worth fell in the third quarter as values stabilized and some homes were lost to foreclosure, Zillow.com said. About 21 percent of owners of mortgaged homes were underwater, down from 23 percent in the second quarter, the Seattle-based real estate data provider said today in a report. ”

Inman - “RPR madness! NAR unleashes national property database with Cyberhomes” (11-9-09)

“The NAR has taken over certain technology assets of Cyberhomes from LPS (formerly known as FNRES) in order to bring its RPR (Realtors Property Resource) project, as well as its consumer-facing play, HouseLogic, to market. To do this, they have created Realtors Property Resource LLC — a wholly owned subsidiary of the NAR.”

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The Norris Group Real Estate News Roundup 10/29/09

Thursday, October 29th, 2009

Today’s News Synopsis:

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

In The News:

San Francisco Chronicle – “Economy growing but recovery could be at risk” (10-29-09)

“Federal support for spending on cars and homes drove the economy up 3.5 percent from July through September. But the government aid — from tax credits for home buyers to rebates for auto purchases — is only temporary. Consumer spending, which normally drives recoveries, is likely to weaken without it.”

Housing Wire – “House Price Declines Weigh on Alt-A, Jumbo RMBS Ratings: Moody’s” (10-29-09)

“Moody’s Investors Service on Thursday said it will begin taking ratings actions in Q409 as needed to account for updated assumptions underlying US residential mortgage-backed securities (RMBS) loss projections. The loss projection revisions come as Moody’s expects house prices to continue to decline to a Q310 trough. Based on recent loan loss severities, the rating agency will increase its projected lifetime loan losses for pools backing US Jumbo, Alt-A, Option ARM and subprime RMBS issued from ‘05 to ‘08.”

Housing Wire – “Sallie Mae To Lose $95M on Mortgage, Real Estate Sale” (10-29-09)

“Student loan giant SLM Corp. (SLM: 10.20 +1.09%) will recognize a loss of as much as $95m on the sale of mortgages and real estate-related assets this quarter, according to a Securities and Exchange Commission (SEC) filing.”

Housing Wire – “CIT Gets Second Private Capital Bailout” (10-29-09)

“CIT Group Inc. (CIT: 0.9146 -13.72%), a commercial lender offering financing to small and medium businesses, this week expanded an existing $3bn senior secured credit facility to obtain $4.5bn in new credit.”

Housing Wire – “Freddie Sees Weekly 30-Year Fixed Rate Pass 5%” (10-29-09)

“Freddie Mac’s (FRE: 1.2901 +11.22%) weekly survey put the 30-year fixed-rate mortgage (FRM) interest rate at 5.03% with an average 0.7 point for the week ending Oct. 29, up from 5% in the previous week. A year ago, the rate was 6.46%.”

Bloomberg - “U.S. Home Vacancies Rise to 18.8 Million on Defaults” (10-29-09)

“The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.4 million a year earlier and 18.7 million in the second quarter, the U.S. Census Bureau said in a report today. The record high was in the first quarter, when 18.95 million homes were vacant. The homeownership rate, meaning households that own their own residence, stood at 67.6 percent.”

Bloomberg - “BlackRock, T. Rowe Price Seek Fed Loans to Buy Bonds” (10-29-09)

“Mutual funds run by companies including BlackRock Inc. and T. Rowe Price Group Inc. have begun buying bonds through a $1 trillion government lending program after a June regulatory ruling cleared the way.”

Bloomberg - “PHH Targets Realogy for Mortgages, Keeps Merrill, New CEO Says” (10-29-09)

“PHH, the fourth-largest U.S. originator of mortgages directly to consumers, can win a greater share of Realogy customers because more than 130 lenders have failed since 2007 and remaining rivals keep changing underwriting rules, Selitto said in an interview Oct. 27. Merrill Lynch contributed 21 percent of 2008 originations at PHH and was sold in January to Bank of America, which has its own mortgage unit.”

Orange County Register – “UCLA sees 16% home-price gain in 2010″ (10-29-09)

“Double-digit housing appreciation will return to Orange County next year, with the median home price rising somewhere from 15.9% to 16.6%, UCLA economists forecast in a report released today.”

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The Norris Group Real Estate News Roundup 10/27/09

Tuesday, October 27th, 2009

Today’s News Synopsis:

The Senate is considering a proposal that would extend and cap the tax credit at $7,290. Interthinx estimates that mortgage fraud risk increased by 11 percent from quarter 2 to quarter 3 of 2009. Goldman Sachs claims that home price stabilization will not last, but Bank of America feels that the outlook for home prices is more positive.

In The News:

Los Angeles Times – “Campaign targets mortgage modification scams” (10-27-09)

“Wachter along with other industry experts still worry that rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales. First-time homebuyers can receive a credit of 10 percent of the sales price, up to $8,000. The real estate industry is lobbying Congress to extend the credit past the Nov. 30 deadline. Top Democrats in the Senate are pressing a plan that would prolong the credit but gradually phase it out over the next year.”

Housing Wire – “House Price Stabilize a Year Ahead of Schedule: RBS” (10-27-09)

“The US economy and housing market in particular are recovering well ahead of the schedule previously anticipated by analysts and market observers, according to commentary by Royal Bank of Scotland (RBS) economists.”

Housing Wire – “House Prices Post Seven Months of Yearly Improvement: Case-Shiller” (10-27-09)

“Home prices in the Standard & Poor’s (S&P)/Case-Shiller 10-City and 20-City Composite Home Price Indices, declined 10.6% and 11.3%, respectively, in August 2009 compared to August 2008.”

Housing Wire – “Mortgage Fraud Risk Surges 11% from Q209: Interthinx” (10-27-09)

“Fraud risk in the mortgage industry surged more than 11% from Q209 to Q309, according to a mortgage fraud risk index compiled by Agoura Hills, Calif.-based mortgage software developer Interthinx.”

Bloomberg – “MetLife, Lincoln May Avoid Commercial Mortgage Losses” (10-27-09)

“MetLife Inc., the biggest U.S. life insurer, and Lincoln National Corp. will probably sidestep commercial-mortgage losses because their biggest loans are ‘handily’ below property values, Barclays Plc said.”

Bloomberg – “Capmark Increased Office, Hotel Loans as Zell Saw Top” (10-27-09)

“In 2006 and 2007, Capmark originated $60 billion in commercial mortgage loans, most for office buildings, according to the Oct. 25 bankruptcy filing. While Capmark was lending, Zell was selling Equity Office Properties Trust at the top of the market for $39 billion, including debt.”

Bloomberg – “Goldman Sees ‘False Bottom,’ Merrill Sees ‘Treat’” (10-27-09)

“The stabilization in U.S. home prices won’t last, according to economists at Goldman Sachs Group Inc. in New York. Their counterparts at BofA Merrill Lynch Global Research see a ‘treat’ rather than a retreat”

Bloomberg – “Senate Close to Deal Replacing Homebuyer Tax Credit” (10-27-09)

“The deal would reduce the size of the tax credit to 10 percent of the sale’s price, capped at $7,290, the people said. The credit would be available on home purchases that are under contract by April 30, and borrowers would have 60 days more to close the sale. The existing credit is due to end Nov. 30.”

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The Norris Group Real Estate News Roundup 10/14/09

Wednesday, October 14th, 2009

Today’s News Synopsis:

Citigroup and other banks are being accountable for fraudulent loans which will cost them more than $688 million. The Mortgage Bankers Association reports that mortgage loan application volume has decreased by 1.8 percent from last week.  JP Morgan Chase has approved of trial modifications for 90 percent of its borrowers.

In The News:

DSNews – “Feds to Offer Easier Aid, Incentives for Modifications and Short Sales” (10-13-09)

“concerns have grown over whether HAMP reaches enough borrowers to make a difference in the wider housing-based economy. The MBA in particular, as well as the servicers’ advocacy group HOPE NOW, has argued that too many homeowners are – or ought to be – ineligible for HAMP modifications, and so far the government has done very little to assist that population.”

Bloomberg – “Citigroup Loans Ruled Fraudulent; Tousa Bonds Surge” (10-14-09)

“Citigroup Inc. and other lenders made fraudulent transfers when they gave Tousa Inc. secured loans six months before its bankruptcy filing, a judge ruled in a decision that may cost the banks more than $688 million. Tousa notes more than tripled.”

Housing Wire – “California Laws Get Tough on Mortgage Finance” (10-14-09)

“Senate Bill (SB) 36 regulates the licensing requirements for residential loan originators in compliance with the federal Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act. SB 237 requires appraisal management companies (AMCs) and appraisers register with the Office of Real Estate Appraisers and subjects appraisers to the provisions of the Real Estate Appraisers’ Licensing and Certification Law.”

Housing Wire – “JP Morgan Beats the Street, Earns $3.6bn” (10-14-09)

“JP Morgan Chase approved 262,000 new trial modifications between the Making Home Affordable Modification Program (HAMP) and its own modification program, resulting in lowered payments for 90% of borrowers with modified mortgages. In the bank’s retail financial services (RFS) division, net income was $7m, down from $57m in Q208 and $15m from Q209, due to a decrease in mortgage origination revenue, an increase in the provision for credit losses, higher non interest expense and lower loan balances, JP Morgan said.”

Housing Wire – “First American CoreLogic Creates National Fraud Database” (10-14-09)

“The National Fraud Database includes application and transaction data of more than 80m loan applications, representing 65% of all loan annual applications, aggregate fraud reports from 35 lenders and investors, with performance data history dating back to 2005.”

Mortgage Bankers Association – “MBA Releases Model Whole Loan Sale and Servicing Agreement” (10-14-09)

“The Mortgage Bankers Association (MBA) today adopted a model sale and servicing agreement it anticipates will become the standard form for industry participants to use voluntarily for whole loan purchases and sales made with an eye toward potential securitization. The Agreement was adopted yesterday by MBA’s Residential Board of Governors (RESBOG) as an MBA supported best practice.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (10-14-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 9, 2009. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.7 percent compared with the previous week.”

CNN – “Push on to expand $8,000 tax credit” (10-14-09)

“Congress is considering proposals to greatly expand a soon-to-expire $8,000 tax credit for first-time homebuyers — potentially applying it to all but the wealthiest homebuyers. Supporters say doing so would further boost home sales, stabilize housing prices and generate jobs. Opponents say extending and expanding the credit would be a waste of money and only temporarily stave off further price declines”

Bloomberg – “Bank of America to Target More Mortgage Share, Desoer Says” (10-14-09)

“Bank of America Corp., seeking to avoid a plunge in mortgage-lending profits in coming years as the business shrinks, will strive to expand its more than 20 percent market share, the head of the company’s home-loan unit said.”

Bloomberg – “GMAC’s Ally Bank Builds Deposits by Needling Rivals” (10-14-09)

“GMAC Inc., the lender that received two U.S. bailouts, has attracted $2.9 billion of new deposits and riled its rivals by offering the highest interest rates and running advertisements that portray bankers as deceptive.”

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The Norris Group Real Estate News Roundup 10/13/09

Tuesday, October 13th, 2009

Today’s News Synopsis:

Fitch reports that 60 percent of borrowers from 06 to 07 have negative equity and owe more than their homes are worth. Interthinx’s Mortgage Fraud Index estimates that fraud decreased by 4 percent from Q1 to Q2 of 2009, but increased by 7 percent from Q2 of 2008. Statistics from MDA DataQuick show that Southern California home sales increased by 5 percent from October of 2008.

In The News:

Housing Wire – “Fitch Sees 60% of Current RMBS Borrowers Underwater” (10-13-09)

“The majority — 60% — of remaining performing borrowers within ‘06- and ‘07-vintage residential mortgage-backed securities (RMBS) bear negative home equity, meaning they are underwater on their mortgages and owe more than their houses are worth”

Housing Wire – “Treasury to Announce New Program to Avoid Foreclosure” (10-13-09)

“HAFA already holds the support of Fannie, according to a VP at the agency, Eric Schuppenhauer, who believes the new program allows borrowers in imminent default to ‘make a graceful exit’ from their home. HAFA will keep the stigma associated with foreclosure away from the borrowers, he added, and help keep communities intact.”

Housing Wire – “Interthinx Fraud Report Links Mortgage Fraud, Foreclosure: DBRS” (10-13-09)

“Interthinx’s Mortgage Fraud Index calculates fraud risk based on the frequency of mortgage fraud activity detected in applications processed by Interthinx’s FraudGUARD system. The Q209 Fraud Index dropped 4% from Q109 but jumped 7% from the year before, according to the report.”

Housing Wire – “House Prices Decline 0.2% in August: IAS” (10-13-09)

“House prices declined 0.2% from July to August, the second month of declines after a fourth-month-long rally that brought a 2.8% increase earlier this year, reported Integrated Asset Services (IAS). The last time national home prices were at the August 2009 level was in February 2005, and prices in August this year were 8% lower than the prices in August 2008, the default management and residential collateral valuation service provider said.”

DQNews – “Southern California home sales inch up; median price steady” (10-13-09)

“Last month 21,539 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 0.2 percent from 21,502 in August and up 5.1 percent from 20,497 a year earlier, according to MDA DataQuick of San Diego.”

Bloomberg – “JPMorgan Pitches Interest-Only Mortgages to Boost Obama Plan” (10-13-09)

“Banks will push the Obama administration to expand its mortgage-modification program to allow interest-only periods on reworked loans, seeking to bring more homeowners into the initiative while recognizing concern that it may only postpone defaults, according to JPMorgan Chase & Co.”

Reuters – “BofA, Chase executives say US housing still fragile” (10-13-09)

“Executives from two of the United States’ biggest home mortgage lenders said the nation’s housing market is still in a tenuous state despite signs of stability over the summer months.”

Inman – “First American offers free market reports” (10-13-09)

“First American CoreLogic has launched a new service, ePropertyWatch, that provides homeowners with e-mail updates on their property value, recent sales, price trends and foreclosure activity in their neighborhood.”

Inman – “Economists mixed on California’s outlook” (10-13-09)

“Drastic cutbacks in new-home construction have helped reduce inventories of homes for sale in California faster than expected, and falling home prices and low interest rates are making owning look like a better deal than renting for many, according to Richard Green, director of the Lusk Center for Real Estate at the University of Southern California.”

Inman – “Fewer sellers slash asking price” (10-13-09)

“Fewer sellers were willing to reduce their home’s asking price in September than they were a year ago, but 44 percent of listings in 28 markets tracked by ZipRealty had seen at least one price reduction, the company said in releasing the results of a monthly survey on price reductions.”

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