Peter Wayman Senior REO Sales Director for Freddie Mac (Full Bio)

September 17^th, 2010, The Norris Group returns with its award winning event I Survived Real Estate 2010. The Norris Group has assembled an incredible line up of industry experts to discuss the state of REO from the inside. Topics will include regulatory intervention and aftermath, bulk buying, myths and facts, and opportunities emerging for real estate professionals. 100 percent of the proceeds support the Orange County affiliate of Susan G. Komen for the Cure. This event would not be possible without generous help from the following platinum partners: Foreclosure Radar and Sean O’Toole, the San Diego Creative Real Estate Investors Association and Bill Tan, Investors Workshops and Shawn Watkins and Angel Bronsgeest, Invest Club for Women and Iris Veneracion and Bobby Alexander, Claudia Buys Houses, The Business Press, Frye Wiles, MVT Productions, and White House Catering.

This week Bruce is joined by Peter Wayman. Peter is the Senior REO Sales Director for Freddie Mac. He oversees the design of sales strategies and how those strategies are applied across the REO portfolio. His group oversees the retail sales process, auctions and investor sales. Peter is responsible for the Affordable Housing Strategy: selling homes to organizations engaged in neighborhood stabilization. Peter came to Freddie Mac with 32 years of executive relocation experience. In that position, he has won national awards and is in the hall of fame.

The major product offered by the relocation industry has been the purchase of the transferee’s home. Peter is accustomed to valuing and selling on a cost plus basis. He does not have to foreclose and evict transferees, but he does have to call executives of companies and tell them the value of their homes. The relocation industry operates globally.

Freddie Mac’s primary method for selling homes is to put them in the hands of great brokers. Also, special incentives are offered to owner occupants to encourage purchasing. Freddie Mac’s focus is to make home buying possible, and to do that by positioning their homes fairly for owner occupants. To effectively use this strategy, homes must be conditioned for financing, buyer’s closing costs must be addressed, and home warrantee programs are offered as well. Freddie is biased towards getting owner occupants into homes.

History shows that if an owner occupant lives in a house, their occupancy improves their neighborhood. Freddie Mac is concerned with neighborhood stabilization. When owner occupants invest their money into a house, they connect more with the community and have more pride in their community.

In 2009, Freddie Mac ended the year with 71% of its homes going to owner occupants. This year, we are slightly under that percentage. We are in a prime selling season now, and Freddie Mac is finishing one of their special programs for owner occupants.

The ratio of 70:30 for owner occupants to other types of owners is considered acceptable by Freddie Mac. Freddie realizes that some of their properties are not currently suitable for occupants. Freddie puts the Neighborhood Stabilization funds into the hands of an NSP grantee for properties in bad condition. The NSP grantee uses the funds to renovate the home, add green energy options to it, and then sell it to an affordable buyer. These homes often receive $30,000 in renovations, which is not something that many private investors can do. Most of these funds are targeting extremely hard hit areas and some homes are even being considered for tear down.

Not all investors do a bad job of renovating properties, but Freddie Mac has to deal with a wide scope of investors. Freddie Mac considers responsible investors to be a viable option for getting rid of inventory.

NSP funds are delivered from a city or county. The largest portions of the funds come from the federal government, but state governments, land banks, and non-profit associations are also engaged in neighborhood stabilization. Freddie Mac is open to working with all of these companies.

Companies with NSP funds have an advantage when looking for properties owned by Freddie Mac. Freddie Mac uses an NCST (National Community Stabilization Trust), which provides access to grantees with NSP funds. The NCST works with a large number of grantees and servicers. It creates an interchange which shows all of the servicer’s properties on a google-type map. The grantees may then look to see if there are properties being offered in their designated census tracks for neighborhood stabilization. They then immediately have the opportunity to ask the servicer for a home’s price. All of this happens during the pre-list phase of moving REO inventory, so grantees have the opportunity to view properties while Freddie Mac is still valuing the properties.

Some cities have had trouble spending their funds for damaged properties. This may be due to the difference in reaction time when compared to a private investor. Some of the NSP-1 funds had to be committed as of today, but there are also NSP-2 and NSP-3 funds. Each grantee takes a different approach on assembling their programs. Some of them got started more quickly than others.

Freddie Mac has been heavily involved in the modification process and in foreclosure alternatives. Peter believes those two tools are becoming much more effective, because the servicers and Freddie Mac are developing more effective automation. Also, staff training has improved, and the real estate community is becoming more educated. All of these things have helped make modifications and foreclosure alternatives more effective.

Banks are beginning to address serious delinquencies. At the end of the 4^th quarter of 2009, serious delinquencies peaked at 4.13 percent of all mortgages. This percentage has been coming down for 5 months in a row.

We are also seeing the REO inventory increasing. In January 2009, we had 21,000 REO homes, and in January 2010, we had 45,000. At the end of July 1^st, we had 62,000 REOs. That 62,000 represents inventory in redemption, eviction, pre-list, listed, sold and going into closing. Generally speaking, over 50 percent of REO inventory is in redemption, eviction, and pre-list. That number is currently closer to 55 percent.

Peter believes it has been proven that losses are lessened by modifications. The sooner you address the problem, the lower the costs are in the process. A foreclosure should be considered a last resort.

Modifications had a 60 percent failure rate. Peter believes that as the modification process has gone to using written verification and careful coaching, the failure rate has gone down.

In September, Peter will be a part of the I Survived Real Estate 2010 panel. He will be speaking in front of about 400 eager investors, who will be trying to figure out how to get their share of Freddie Mac’s properties, and possibly even get a chance at a bulk purchase.

Peter is very excited to work with this charity program. Freddie Mac has to be primarily concerned with getting rid of properties at the lowest cost to the tax payer. Freddie Mac has discovered that nothing works better than listing properties with a great real estate broker, exposing it to the entire market, having a property priced and conditioned right, and allowing that exposure to drive a retail sale within 90 to 120 days. This focus tends to work extremely well. There are some assets that do not sell within that time frame. When assests don’t sell well, Freddie Mac turns to ballroom auctions and online auctions, and finally to bulk sales for investors. Investor bulk sales are not perceived as having the highest potential recovery rate. Less than 0.5 percent goes through bulk investor sales. Freddie Mac is currently developing a better strategy for bulk sales. There should be more bulk sale activity in the future.

Some states have different real estate problems, and there are some problems that necessitate different solutions. In Florida, Freddie Mac has a waver on REO condo requirements, so Florida condos make great candidates for bulk sales. Properties with Chinese drywall, low values, no insurance options, no occupancy certificates, or environmental problems will be more likely to end up in a bulk sale. Lots of investors contact Freddie Mac asking to buy all the $200,000 properties in California and Arizona. Peter responds to those investors saying, “You mean all those properties that I get multiple offers on within the first two weeks of being listed on the market?” Freddie Mac does not need investors to buy those properties.

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.

Thank you for being a Gold Sponsor for I Survived Real Estate 2010: Adrenaline Athletics, Benton Investment Group, Community RE-Invest Group, Delmae Properties, Elite Auctions, Entrust California, Everlast Photography, Inland Empire Investors Forum, Keystone CPA, Landwood Title, Las Brisas Escrow, Leivas Financial Services, Mike Cantu, North San Diego Real Estate Investors Association, Northern California Real Estate Investors Association, Personal Real Estate Investor Magazine, Realty 411 Magazine, San Jose Real Estate Investor Association, Rick and LeeAnne Rossiter, San Jose Real Estate Investor Association, Starz Photography, Summit Solutions, Tony Alvarez, Wealth Point, and Westin South Coast Plaza.

Existing home sales experienced a dramatic decrease of 27.2 percent in July, according to the NAR. Housing production decreased by 10 percent in June. The CAR reports California home sales decreased 20.8 percent in July. Statistics from the California Employment Development Department show that 7,100 jobs were lost from July 2009.

In The News:

NAR - “July Existing-Home Sales Fall as Expected but Prices Rise” (8-24-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009.”

CBIA - “California Housing Production Increases in July, CBIA Announces” (8-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 4,165 total housing units in July, up 35 percent from the same month a year ago but down 10 percent from June. Permits for single-family homes totaled 1,951, down 9 percent from July 2009 and down 31 percent from the previous month, while multifamily permits totaled 2,214, up 134 percent from a year ago and up 25 percent from May.”

Mortgage Bankers Association – “Wells Fargo Tops U.S. Commercial/Multifamily Servicers in MBA Mid-Year Rankings Report” (8-24-10)

“The Mortgage Bankers Association (MBA) today released its mid-year ranking of commercial and multifamily mortgage servicers as of the end of June 30, 2010. Topping the list of firms is Wells Fargo with $462.8 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $307.9 billion, Berkadia Commercial Mortgage with $202.6 billion, Bank of America Merrill Lynch with $133.4 billion and KeyBank Real Estate Capital with $124.7 billion.”

CAR - “July sales and price report” (8-24-10)

“California home sales decreased 20.8 percent in July compared with the same period a year ago, while the median price of an existing home rose 10.4 percent from July 2009, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Housing Wire – “Disappointing Homes Sales Unlikely to Reverse Course” (8-24-10)

“Predictions that home prices may drop into double digits continue to drag down sales. Bill Gross, managing director of the world’s biggest bond fund, PIMCO remarked that the idea of a rebound anytime soon is ‘ludicrous.’ In a meeting at the US Treasury last week, Gross called for combining the government-sponsored entities into one entity that insures the majority of current and future originations.”

Housing Wire – “60% of Delinquent Mortgages Not in Loss Mitigation” (8-24-10)

“According to a study from the State Foreclosure Prevention Working Group (SFPWG), 60% of borrowers with mortgages delinquent by 60 days or more are not being forwarded to the servicer’s loss mitigation department.”

Bloomberg - “Purchases of Existing Homes in U.S. Probably Slumped in July” (8-24-10)

“Sales of U.S. previously owned homes probably plunged in July to the lowest level since March 2009, evidence the market is restrained by foreclosures and limited job growth, economists said before a report today. Purchases dropped 13.4 percent from June to a 4.65 million annual rate, according to the median of 73 forecasts in a Bloomberg News survey. A decline would be the third in a row.”

Orange County Register – “Corona del Mar is O.C.’s ‘coldest’ market” (8-24-10)

“The pricier the town, the harder it is to sell a home there right now, the latest O.C. home inventory report from Steve Thomas at Altera Real Estate shows. Corona del Mar, for example, was Orange County’s ‘coldest’ market in the past 30 days. In theory, it would take 11 1/2 months to sell all the homes on the market there at the current sales pace, the highest ‘market time’ for any O.C. community in the 30 days ending on Aug. 19. Other ‘cold’ markets likewise tend to be home to some of O.C.’s most expensive housing.”

Orange County Register – “Real estate, building jobs down 5% in July” (8-24-10)

“Indeed, construction suffered the largest year-over-year decline among every employment category, the state Employment Development Department reported. Construction jobs fell by 7,100 positions from July 2009, down nearly 10%. Construction jobs totaled 65,700 in July, state figures show.”

Orange County Register – “Broker: No tsunami of repo’d homes to hit market” (8-24-10)

“This shadow inventory has to be worked through, but is not going to occur as a tsunami of distressed properties to hit the market all at once. Instead, we are going to witness slow increases and drops over the next few years. This slow absorption will not pull down values like it did at the beginning of this downturn and it will keep a lid on any substantial appreciation. Once employment improves, the pathway to an eventual healthy and stable recovery will occur.”

Looking Back:

One year ago, 45,079 new and resale houses and condos were sold statewide in one month. Home sales in the Bay Area hit a 4 year high. The Federal Reserve accepted $2.3 billion in investor requests for financing to purchase legacy commercial mortgage-backed securities.

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.

Sean O’Toole Founder and CEO of ForeclosureRadar (Full Bio)

September 17^th, 2010, The Norris Group returns with its award winning event I Survived Real Estate 2010. The Norris Group has assembled an incredible line up of industry experts to discuss the state of REO from the inside. Topics will include regulatory intervention and aftermath, bulk buying, myths and facts, and opportunities emerging for real estate professionals. 100 percent of the proceeds support the Orange County affiliate of Susan G. Komen for the Cure. This event would not be possible without generous help from the following platinum partners: Foreclosure Radar and Sean O’Toole, the San Diego Creative Real Estate InvestorsAssociation and Bill Tan, Investors Workshops and Shawn Watkins and Angel Bronsgeest, Invest Club for Women and Iris Veneracion and Bobby Alexander, San Jose Real Estate Investors Association and Geraldine Barry, Claudia Buys Houses, Frye Wiles, MVT Productions, and White House Catering.

This week Bruce is joined by Sean O’Toole. Sean is the Founder and CEO of ForeclosureRadar.com. ForeclosureRadar is the only company that tracks every foreclosure in California, Arizona, Nevada, Washington and Oregon. It makes updates daily on all foreclosure auctions. Prior to ForeclosureRadar, Sean spent 15 years building and launching software companies. In 2002, Sean entered the foreclosure business, and bought and sold over 150 properties.

Bruce thinks everyone who is a trustee sale buyer should be a member of ForeclosureRadar. When Sean started Foreclosure Radar, there were only about 40 trustee sale buyers who bought the majority of the deals within the state, but now there are thousands. The invention of the lower bid has created activity. We wish they would drop their opening bids even lower.

5 to 10 billion dollars worth in properties go to the courthouse steps every month. 80 percent of those properties go back to the bank as REOs. The number of REOs have decreased 50 percent from July 2008. However, there are still a huge number of properties being taken back by banks. From a historical perspective, we still have an outrageously high number of REOs.

People tend to have this mentality that nothing bad can happen from here on out, because they don’t think the lenders will unload a bunch of inventory into the market. However, in 2007 and 2008, that is exactly what they did. Up until the end of 2008, regulations required you to file a notice of default after 60 to 90 days of delinquency. In September of 2008, Paulson changed the rules, and since then, they have changed the rules to mark to market. Lenders now have this mentality that discourages them from foreclosing so long as there is some hope of receiving payment at some point in the future.

People are wondering when all the shadow inventory is going to show up and ruin everyone’s day. Shadow inventory has a few different holding tanks. The banks are holding it and not releasing it. In 2008, there was growing evidence that banks had inventory that were not being listed. In 2009, banks started selling more foreclosures than they were taking back. In the mean time, we had delinquencies that were over 90 days delinquent and were not going into foreclosure. Some properties are as much as 180 days delinquent. We have 1 million homeowners in California that are not making payment, but only 200,000 in foreclosure, and only 15,000 to 20,000 being foreclosed on per month.

There is a report claiming that “once a person is behind, the odds of them making that payment current again without a loan modification is 1%”. Sean thinks that may be true historically, but right now, the situation is worse than that. In the past, people went delinquent because of job problems, but this time, they are going late because we had a massive credit bubble that doubled home prices fictitiously. We have now corrected those prices, but we have 4 trillion dollars in excess mortgage debt. People are realizing that they are never going to get that money back, and paying the interest doesn’t help them.

ForeclosureRadar noticed an increase in investor activity in 2009. Subscriptions increased slightly around that time. Right now, people are concerned that the economy and housing might double-dip. Bruce thinks that a double-dip will probably occur.

A lot of ForeclosureRadar’s growth has come from builders and commercial real estate brokers. The court house steps have become much more competitive because of these two groups. They can’t just stop working because their niche isn’t doing well.

From 2002 to 2006, good investors could get a 50 to 75 percent return on capital. In 2007, the market went away because the banks weren’t dropping the bids. In 2008 and 2009, Sean heard plenty of stories about investors getting an 80 percent return on capital. It got really good for a little while, but over the past six months, the market got a lot more competitive. There are plenty of risks with buying at auctions. Bruce believes that someone makes a mistake every day at the courthouse that alters their financial life for a while.

The government has decided that it is better to avoid taking a property back to the lender. ForeclosureRadar is tracking the lenders who are willing to work problems out. Investor short sales concern Sean, especially if the deal is being bought to be flipped. Some people are claiming you can make a lot of money by doing a short sale through a double escrow. Sean thinks people who do that are going to get themselves into trouble. Bruce interviewed the FBI on this subject, and the FBI described the people who do double escrows as perpetrators. There are short sale opportunities out there, but there is a lot of risk involved. It can be difficult to convince lenders that you have added a significant amount of value to a recent short sale.

Lenders understand that auctioned properties are being sold at a discount. On a short sale, lenders believe that a market sale is being made, and they will not like the idea of selling a short sale at $100,000 below market.

Deutsche Bank recently made a report on mortgage servicers and how long it takes to do a short sale. With prime mortgages, GMAC took six months on average, CitiGroup took 7.5 months, Wells Fargo took 8 months, and Countrywide took 13 months. There is a buyer attached to the end of these deals, and no one is going to wait 13 months.

People involved with HAFA brag about their ability to sell within six months, and Bruce thinks that is ridiculous. The problem is that people are not coming to terms with the losses they are going to take. The government also has a few policies that are affecting speed. If Bruce was attached to that business, he would be very frustrated.

Mortgage insurance companies know they will have a better income and have less of a loss with a short sale, but if they have that loss right now, then they’ve got a payout to make. If they do not approve a short sale, and force a property into foreclosure, they may not have to payout for 8 or 9 months.

Sean believes that companies are moving away from principal reductions. Freddie claimed that they are not going to do principal reductions, because they have been tasked with protecting tax payer funds and they cannot just give out principal. If GSEs, who hold a lot of the mortgage debt, start giving out principal reductions, then that comes directly at the cost of the taxpayers. Freddie has a deed-in-lieu lease back program with a lease option. If someone does a deed-in-lieu under this program, they have a two year waiting period before they get to buy a property, and Bruce has the feeling that the property they will buy is that same property they were previously in. That would cause less volatility in the market, because it would discourage buyers from moving around.

Sean recently did some research for American Banker Magazine on jumbo loans. Loans under $417,000 are the fastest to be foreclosed on. Mini jumbos, which range from $417,000 to $729,000, take 30 days longer to foreclose on, and it takes even longer to foreclose on big jumbos. If lenders are struggling to deal with reality anywhere, it is at the high end of the market. Lenders sometimes try to aggressively foreclose with the hope of scaring the borrower into paying, but when they don’t get scared, the borrowers will simply vacate and move, and then the foreclosure gets cancelled. When lenders do not foreclose because they do not want the house, they are usually cancelling foreclosure by the masses. These lenders are often working to get people into the HAFA program, so that they can get a short sale or deed-in-lieu. Sean thinks the HAFA program is just like HAMP last year. It is not meant to conclude a bunch of short sales, it is meant to put people through another six months of delay only to tell them that they do not qualify.

Sean O’Toole’s website is www.foreclosureradar.com

Sean will be on the I Survived Real Estate 2010 panel in September.

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.

Thank you for being a Gold Sponsor for I Survived Real Estate 2010: Delmae Properties, Elite Auctions, Entrust California, Inland Empire Investors Forum, Keystone CPA, Las Brisas Escrow, Leivas Financial Services, Mike Cantu, North San Diego Real Estate Investors Association, Northern California Real Estate Investors Association, Personal Real Estate Investor Magazine, Realty 411 Magazine, San Jose Real Estate Investor Association, Tony Alvarez, and Westin South Coast Plaza.

Freddie Mac reports 30-year fixed mortgage rates have fallen below 4.5%. Home prices increased 8.1% from this time last year, according to Clear Capital. Statistics from the Department of Labor show initial unemployment insurance claims rose 19,000 last week.

In The News:

Los Angeles Times – “Home loan rates decline again as inflation fears abate” (8-5-10)

“Record low mortgage rates are still declining, according to Freddie Mac, which said lenders were offering 30-year fixed loans at less than 4.5% this week and 15-year loans at less than 4%. ”

Inman - “Agent, broker confidence hits low point” (8-5-10)

“Real estate broker and agent confidence fell to a new low in July, according to a survey by real estate marketing and technology provider Point2 Technologies. Point2’s Real Estate Confidence Index (RECI) fell 8.85 percent last month to 5.24, from 5.76 in June. The index is based on survey responses on a 10-point scale; one equals ‘bad’ or ‘pessimistic,’ and 10 equals ‘good’ or ‘optimistic.’”

Mortgage Bankers “MBA Applauds Senate Passage of Bills to Help Stabilize FHA Multifamily and Single Family Programs” (8-5-10)

“The Mortgage Bankers Association (MBA) today lauded Senate passage of H.R. 5872, a bill to increase the Federal Housing Administration’s (FHA) multifamily commitment authority, and H.R. 5981, which would allow FHA to increase its annual premiums for its single family program. Both bills passed the Senate last night and will now go to the President for his signature.”

Housing Wire - “Valuation Partners CEO: HVCC Will Have Lasting Impact” (8-5-10)

“While HVCC is ending, it will have a lasting impact. Important tenets of the HVCC were clearly reinforced by the recent Dodd-Frank legislation, such as appraiser independence, and the separation between appraiser engagement and loan production activities remains. In fact, this separation has been further embedded in the seller servicing guidelines of the GSEs and with most major acquirers of mortgage loans. I would expect future oversight, guidelines, and legislation to largely parallel these fundamentals.”

Housing Wire – “Tax Credit Tailwind Lifts July Home Prices 8%: Clear Capital” (8-4-10)

“July house prices gained 8.1% from the same point last year, slowing somewhat from the 8.8% growth measured in June as the effect of the homebuyer tax credit begins to fade, according to data provider Clear Capital. Clear Capital’s Home Data Index Market Report tracks housing prices along a rolling quarter-by-quarter basis. July house prices increased 7.9% from the previous three months, an improvement from the 5.2% growth seen in June. Alex Villacorta, senior statistician at Clear Capital said home prices are continuing their growth from the beginning of the year.”

Housing Wire – “Weekly Jobless Claims Rise More than Expected, to 479,000″ (8-5-10)

“Initial unemployment insurance claims rose 19,000 in the week ending July 31, marking a departure from market expectations of a small decline last week. Jobless claims rose to a seasonally adjusted 479,000 from the previous week’s downwardly revised figure of 460,000, according to new data today from the US Department of Labor. The four-week moving average rose 5,250 to 458,500.”

Inman - “7 sales strategies for any market” (8-5-10)

“Van Stensel says she has no problems obtaining seller permission for price reductions. The reason is simple. To work with her, the sellers must agree to reduce their price by 3 percent after every 10 showings or every three weeks — whichever comes first.”

Inman - “FHA premiums face new restructuring” (8-5-10)

“Faced with rising losses on FHA-guaranteed loans, the Department of Housing and Urban Development (HUD) hiked upfront premiums in April, raising them from 1.75 percent of the loan being insured to 2.25 percent. Applications for FHA-guaranteed loans fell nearly 20 percent after the increase went into effect, according to a weekly survey conducted by the Mortgage Bankers Association.”

Orange County Register – “Home-price gains called ‘anomaly’” (8-5-10)

“One clear weak point is the housing market, which crammed two years of sales into six months (in response to tax credits). Even those recent gains in median home prices grossly overstate the reality. Home prices are up from a year ago, but the gains in median prices is a statistical anomaly, driven primarily by the shift in the sales mix. In early 2009, home loans were only available up to $417,000, which meant almost no homes sold for over $500,000. The return of jumbo mortgages has dramatically increased the sales of higher priced homes while the inventory of lower prices homes evaporated in response to the homebuyer tax credit.”

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

MDA DataQuick reports 70,051 Notices of Default were filed during the second quarter. The weekly survey from the MBA shows mortgage application volume increased by 7.6 percent this week. Some analysts fear the new financial reform may significantly damage the mortgage industry. The LAEDC believes Orange County will experience a building boom next year.

In The News:

DQNews - “California Mortgage Defaults Hit Three-Year Low; Foreclosures Rise” (7-21-10)

“A total of 70,051 Notices of Default (”NODs”) were filed at county recorder offices during the April-to-June period. That was down 13.6 percent from 81,054 for the prior quarter, and down 43.8 percent from 124,562 in second-quarter 2009, according to San Diego-based MDA DataQuick.”

Mortgage Bankers Association – “Interest Rate Drops Spur Refinance Applications in Latest MBA Weekly Survey” (7-21-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 16, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 7.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 19.5 percent compared with the previous week, which included the Independence Day holiday.”

Housing Wire – “The Nickel and Dime Impact of Financial Reform on Mortgage Servicing” (7-21-10)

“there are several aspects that directly apply to the mortgage servicing industry, and this is mainly due to several minor points through out the reform that add up to one big problem: COST. Considering that the entire bill is drafted as a systemic de-risking manifesto, these changes may actually streamline operations, not work against it. So it’s likely margins will improve, right? No, the biggest impact of the financial reform will be to nickel and dime servicers. As a research note from Deloitte says, ‘it is no exaggeration to suggest that Dodd-Frank will trigger a realignment that is set to challenge financial firms in fundamental ways. They will likely have to reexamine their business models.’”

Housing Wire – “Dodd-Frank Reform Bill Extends Tenant Act through 2014″ (7-21-10)

“PTFA, originally enacted in May 2009, allows renters whose landlords have lost their properties to foreclosure the right to stay in the home for 90 days after the foreclosure or through the term of their lease. Without the new extension in the financial reform bill, the law would have expired at the end of 2012.”

Bloomberg - “U.S. Regulatory Bill May `Flash Freeze’ Asset-Backed Market, Industry Says” (7-21-10)

“The U.S. financial-regulation bill may halt the already diminished market for asset-backed securities by increasing liability risk for credit raters, a securitization-industry group and bank analysts said. The legislation, set for signature by President Barack Obama, eliminates credit-rating companies’ shield from lawsuits when underwriters include their assessments in documents used to sell debt. Moody’s Investors Service and Fitch Ratings have already told Wall Street that because of an increased risk of being sued, they will no longer let underwriters use ratings in bond-registration statements.”

Bloomberg - “U.S. Mortgage Brokers Get Criminal Check, Tests Under New Rules” (7-21-10)

“Brokers in the nation’s most populous state will be required by July 31 to have passed criminal-background and credit checks, as well as licensing exams. California, along with about a third of U.S. states, previously didn’t require mortgage sellers to have individual licenses. Brokers will be assigned identification numbers to enable regulators and borrowers to track their lending histories.”

Orange County Register – “Forecast: O.C. homebuilding up 51% in ‘11″ (7-21-10)

“Orange County builders will start a home construction surge next year, growing the number of building permits filed for future construction by 51% vs. this year’s expected total. That’s a bold projection — especially considering all the mid-summer angst about the economy — within the Los Angeles Economic Development Corp.’s latest regional forecast. LAEDC sees Orange County builders pulling permits for 2,600 units of housing in total for this year. And that’s a 19% improvement above last year’s highly depressed level. Local building permits have fallen 5 out of the past 7 years.”

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.

Tony Alvarez Author and Investor (Full Bio)

This week Bruce is joined by Tony Alvarez. Tony is a successful investor. He now lectures inside and outside California. Tony is the author of Breaking Into The REO Business. How I Went From Bankruptcy to $7.2 Million in 7 Years While Making Friends.

Tony never thought he would write a book. He began considering to write this book after Bruce asked him to speak at the Millionaire Maker. This offer made Tony nervous, because he just thought of himself as a regular person, not a successful business man. Tony was worried about speaking in front of a large group of people, but Bruce helped him to calmly think about exactly what he did to succeed. Bruce structured the Millionaire Maker event so that the audience could analyze each speaker and find at least one successful person that they could replicate. He also was hoping that the audience would be able to take advice from a variety of very different and successful people.

Tony was the last man to speak at the Millionaire Maker event. Bruce assigned Tony the last position because he knew that no one would be able to match Tony’s story. Before he began to speak, he felt nervous and frozen. The reaction the audience had to Tony’s story surprised him immensely. One of the audience members actually stood up and requested that the event organizer cancel the next speaker, so that the audience could hear more of Tony. Tony feels that Bruce has a great talent for recognizing the talents of different individuals.

Tony’s parents traveled to Florida from Cuba in 1960. Because Tony’s parents wanted him to assimilate into the American culture, they quickly moved to Massachusetts. Tony’s family was very poor. His whole family slept in a 10×10 room, and he shared a kitchen with other families. However, he did come away with a sense that opportunity was out there. His family did not complain about anything. Tony’s first playground was the alley behind the International Institute, and he was ecstatic to be there. All of his clothes were donated to him by the Catholic church.

Tony’s parents bought their first home with no down payment. They were told that they would never have anything of their own unless they bought a home rather than renting. Tony’s father taught him to work harder than anything else, and stay focused on what you want to accomplish. Tony’s father is all about people and relationships. His mother was a maid for Phillip’s Academy, where the Kennedy’s visited occasionally. Tony’s grandmother was diagnosed with terminal cancer, and she wanted to die in Cuba, but she couldn’t afford the ticket. While Tony’s mom was working at the academy, she met Bobby Kennedy and befriended him. When the Kennedy’s found out that Tony’s mom was from Cuba, they were more interested in her than she was in them, because she didn’t know who the Kennedy’s were.

Tony’s mother told him that you can accomplish anything you want to in life, so long as you learn to love other people first. That is exactly what Bruce has observed. Bruce and Tony’s work is not about a manipulation, it is about a true concern for the people working with you, and people can sense that kind of concern.

In the 80s, Tony was in the business for the money, and he didn’t pay much attention to the people around him. He eventually left the business because he got burnt out. He no longer wanted anything to do with real estate. He invested all his money into another business and lost it all. When he started investing in real estate again in 1995, he wanted to find a better way of doing business. He did not want to make money at someone else’s expense. He started buying in the Antelope Valley which was known as the foreclosure capital of the United States. People were fighting tooth and nail over all the HUD homes. He decided he did not want to do that, and he discovered these people called REO agents. Tony realized that these brokers needed to have someone who would buy the REO inventory from them. However, you have to be a certain kind of person in order to gain their attention. He discovered that the personal attributes these agents were looking for were the same two attributes his parents had instilled in him. You have to be a hard worker and you have to care about other people. You need to have just as much concern for the success of your partners as you do for yourself. The majority of Tony’s business life revolves around answering his phone, saying “How are you doing? How is your family?”, and saying, “Yes, I will take that”, or “No, I don’t think that is right for me.” When you care about your business partners, they will start caring about you.

When Tony chose to re-enter the real estate business, he began looking for where the opportunity was. At that time, the Antelope Valley was the land of opportunity. The first thing he did was he found a home for sale. The first “for sale” house he found had 3 bedrooms, 1 bathroom, and was selling for $37,000. That house would have cost $100,000 to build that day. The rent was anywhere from $650 to $850 depending on who he wanted as a tenant. This got him excited because he was looking at his second opportunity to succeed.

When Tony left the real estate business long ago, he was very emotionally damaged by his failure. He declared bankruptcy and began working at a pizza business. When you lose everything like he did, you wake up every morning and disgrace the image you see in the mirror. You lose the ability to trust your own decision making.

Coming out of Tony’s life downturn, he learned that he was still the same person who his parents wanted him to be. The love he had was the ultimate tie breaker that opened the door to opportunity. People think they have to assemble all these pieces to become a great investor, but once you develop trust with your business partners, you can assemble those pieces later.

When you have nothing to brag about, like Tony when he restarted his real estate career, all you have to convince an REO agent that you are the real deal is your own personal attributes. REO agents hear enough about personal accomplishments from people and they discount it. People can tell when someone in being disingenuous.

There are more elements to investing than just finding a good product. REO agents have control over these products, so developing a good relationship with them is more valuable than finding a couple good deals. What will help you develop a relationship with an agent has little to do with money.

REO agents do not have the mentality that they have the A-list of buyers. Unlike a marriage where you cannot keep looking for a better partner, REO agents have relationships that are more based on performance. If an agent can find a new guy that can perform just as well as their other partners, but will also complete transactions that aren’t profitable, that new guy will become their number 1 partner. However, getting on an REO agents list of preferred business partners is not easy.

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.

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Looking Back:

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

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

Sources:
http://www.dsnews.com/articles/house-republicans-want-penalties-for-strategic-defaulters-2010-06-17
http://www.housingwire.com/2010/06/09/congress-to-consider-fha-reform-mortgage-insurance-hike
http://www.govtrack.us/congress/bill.xpd?bill=h111-5072
http://www.housingwire.com/2010/06/15/reid-urges-3-month-extension-of-homebuyer-tax-credit
http://www.housingwire.com/2010/06/16/mortgage-defaults-foreclosures-drop-across-california-foreclosureradar
http://www.dsnews.com/articles/fhfa-orders-fannie-freddie-to-delist-stock-from-nyse-2010-06-16
http://www.dsnews.com/articles/fbis-mortgage-fraud-crackdown-expected-to-yield-hundreds-of-arrests-2010-06-14
http://www.fbi.gov/pressrel/pressrel10/financialfraud_061710.htm
http://www.dsnews.com/articles/fitch-projects-steep-re-default-rates-on-hamp-modifications-2010-06-16

Today’s News Synopsis:

Statistics from MDA DataQuick shows 40,965 new and resale houses and condos were sold statewide last month. The state Franchise Tax Board has received applications claiming about 80 percent of the funds allocated for the home buyer tax credit. Mortgage brokers and realtors are complaining that the HVCC has produced low-ball appraisals that have blown up deals, while appraisers argue the change has harmed appraisal quality. A survey from Coldwell Banker Real Estate shows that 52 percent of single homeowners prefer buying in suburb areas.

In The News:

DQNews - “California May Home Sales” (6-18-10)

“An estimated 40,965 new and resale houses and condos were sold statewide last month. That was up 9.3 percent from 37,481 in April, and up 4.9 percent from 39,051 for May 2009. California sales for the month of May have varied from a low of 32,223 in 1995 to a peak of 67,958 in 2004, while the average is 47,024. MDA DataQuick’s statistics go back to 1988.”

San Francisco Chronicle – “First-time home-buyer credit may vanish soon” (6-18-10)

“The state Franchise Tax Board has received applications claiming about 80 percent of the funds allocated for the credit. Although it’s hard to predict, tax board spokeswoman Denise Azimi says the credit could be gone within a few weeks.”

Wall Street Journal – “Realtors, Brokers Target Home-Appraisal Rule” (6-18-10)

“The mortgage-broker and real-estate industries are pushing to have a measure that would kill new home-appraisal rules inserted into pending legislation to overhaul financial-sector regulation. The Home Valuation Code of Conduct, adopted in May 2009 to ensure appraiser independence, bars mortgage brokers and bank loan officers from selecting appraisers. Mortgage brokers and realtors complain that the rules have produced low-ball appraisals that have blown up deals, while appraisers argue the change has harmed appraisal quality.”

Inman - “Singles flock to suburbs” (6-18-10)

“While young Millennials seem to have a preference for suburbs, they’re not the only ones. Singles of all ages are more likely to buy a home in the burbs, according to the results of a survey by national brokerage company Coldwell Banker Real Estate. The company conducted a national online survey of 1,050 single homeowners in April. It found that 52 percent of singles chose to buy in suburbia rather than getting ‘bachelor or bachelorette pads’ in urban or rural areas.”

Housing Wire – “GSEs Plan Chinese Drywall Mortgage Forbearances” (6-18-10)

“Under the authority of its ‘Unusual Hardships’ policy, Fannie is directing its mortgage servicers to provide borrowers impacted by Chinese drywall up to six months of forbearance on their monthly mortgage payment and to minimize the derogatory credit impact for borrowers who are current on their loans and complying with the terms of the forbearance.”

Housing Wire – “FinCEN Says Foreclosure Scam Reports Rose Dramatically in 2009″ (6-18-10)

“The number of suspicious activity reports (SARs) from financial institutions related to foreclosure scams dramatically increased last year, according to a new report from the Financial Crimes Enforcement Network (FinCEN). The report also noted that the type of foreclosure scams also evolved during the reporting period, which covered Jan. 1, 2004, through Dec. 31, 2009. FinCEN said foreclosure rescue scams increased substantially in the last eight months of 2009.”

Orange County Register – “Pimco: No quick recovery for big properties” (6-18-10)

“Distressed properties may be hard to sell, making a quick recovery unlikley. Commercial real estate prices will remain 30% to 40% below 2007 peaks for three to five years and may not return to 2007 peaks until end of the decade.”

Realty Times – “Developing The Skill Of Qualifying Buyers” (6-18-10)

“The longer the time the buyer has been looking, the lower the motivation. We have to wonder why a buyer has not been able to find a home in six months. Are they looking for something that doesn’t exist? Are their expectations too high for the marketplace? Do they just enjoy the process of kicking foundations? When someone said to me that they had been looking for more than 90 days, I wanted to know what they were looking for and the reasons why they hadn’t found it yet.”

Realty Times – “Little Change Seen in Mortgage Rates This Week” (6-18-10)

“Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.75 percent with an average 0.7 point for the week ending June 17, 2010, up from last week when it averaged 4.72 percent. Last year at this time, the 30-year FRM averaged 5.38 percent.”

Realty Times – “How To Make Buyers Want Your Home” (6-18-10)

“Countertops are fixtures in homes. So making sure that you select the best material to endure the daily wear and tear is important. If we’re talking about the kitchen, for instance, there are many options: granite, tile, recycled glass (for a green option), solid steel, composite stone, butcher block, laminate, and even concrete. Yes, that last one sounds surprising but concrete is being used for countertops and laminate isn’t necessarily trying to mimic other materials anymore. Instead, homeowners are embracing laminate’s own unique high-tech look.”

Looking Back:

One year ago, the median price paid for a home in the nine-county Bay Area region rose to $341,500. The Federal Reserve’s total amount of commercial/residential mortgage debt decreased by $33 million from 2008 to 2009. Economists from Chapman University claimed that an economic recovery would begin during the second half of 2009. The average 30-year FRM rate dropped to 5.38 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.

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.

A CAR survey shows that 67 percent of home sellers chose to sell because of their inability to pay mortgage debt. The FHFA reports that U.S. home prices decreased by 1.2 percent in the fourth quarter. A survey shows that agents and brokers are growing increasingly pessimistic of the future of real estate. According to FHFA, the rate for 30-year FRMs increased to 5.1 percent in January.

In The News:

San Francisco Chronicle – “Newsom plan would defer up-front developer fees” (2-25-10)

“The mayor’s administration says the package of legislation, tentatively set to go before the Board of Supervisors’ land use committee March 15, would cut up-front costs for developers, making it easier to get financing in this recession. Newsom said his proposals would speed up start times on four specific projects by as much as two years, including the second tower in the One Rincon Hill development. Work on the four projects could start in two months, he said.”

CAR - “C.A.R. releases ‘2009-2010 Survey of California Home Sellers’” (2-25-10)

“Changes in family and employment status as well as adjustments to monthly mortgage obligations played significant roles in California’s homeowners’ decisions to sell their homes in 2009, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) ‘2009-2010 Survey of California Home Sellers.’ According to the report, 67 percent of all sellers in California did so as a result of difficulties related to meeting their mortgage obligation.”

Bloomberg - “Home Prices Decline 1.2%, Smallest Drop in Two Years” (2-25-10)

“U.S. home prices fell 1.2 percent in the fourth quarter from a year earlier, the smallest loss in two years, as a federal tax credit for homebuyers boosted demand. Prices were down 0.1 percent from the third quarter, the Federal Housing Finance Agency said today in a report. The year- over-year drop was the smallest since a 1.1 percent decline in 2007’s fourth quarter, the Washington-based agency said.”

Inman - “Agents, brokers less rosy on future” (2-25-10)

“Short-term views for the next three to six months deteriorated 2.89 percent, to 5.71, while long-term views for the next 12 to 18 months fell 4.1 percent to 6.32. The survey pointed to expected interest rate hikes, the poor jobs market, and the imminent April 30 deadline (for a home sale to be under contract) for the federal homebuyer tax credit program as participants’ major concerns.”

Housing Wire – “FHFA Mortgage Rate Tracker Posts Increase in January” (2-25-10)

“The average interest rate on conventional 30-year, fixed-rate mortgage (FRM) with a principal of $417,000 or less was 5.1% in January, an increase from 5.05% in December, the FHFA said. The average interest rate on 15-year FRM of $417,000 or less stayed at 4.54% in January.”

Housing Wire – “Delinquent CMBS Triples as Spreads Stabilize” (2-25-10)

“Realpoint reviewed more than $797bn in CMBS pools for the January report. The firm calculated a 5.76% delinquency rate for the pools reviewed, up from 5.22% in December. The rate jumped by more than four times the rate in January 2009, when 1.2% of the reviewed loans fell delinquent. June 2007 held the lowest delinquency rate recorded by Realpoint, at 0.2%.”

Housing Wire – “Bankers Propose Mortgage Forebearance for Unemployed” (2-25-10)

“The program would give incentives to investors and servicers (through Treasury’s TARP) that place unemployed borrowers in a forbearance plan for up to 90 days — a period that can be renewed twice based on borrower’s financial circumstances. This plan would put a borrower in forbearance for up to nine months, at which time (or earlier, at re-employment status) eligibility for a HAMP trial can be determined.”

Bloomberg - “General Growth Is Biggest Real Estate Fight Since Equity Office” (2-25-10)

“The battle for General Growth Properties Inc., owner of more than 200 U.S. malls from Boston to Los Angeles, is turning into the biggest real estate fight since sale of Sam Zell’s Equity Office Properties Trust. Westfield Group, a Sydney-based property investor with stakes in 55 U.S. retail centers, signed an agreement letting it assess General Growth’s finances, a person familiar with the pact said yesterday. That may put Westfield in position to vie for the bankrupt company’s assets as part of a contest already embroiling Simon Property Group Inc. and Brookfield Asset Management Inc.”

Bloomberg - “Obama May Prohibit Home-Loan Foreclosures Without HAMP Review” (2-25-10)

“The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.”

Looking Back:

One year ago, existing home sales decreased by 5.3 percent. The MBA announced that mortgage loan application volume had decreased by 15 percent from the previous quarter. The Obama administration implemented a stress test of 19 banks. Bernanke claimed to be confident of the federal reserve’s ability to prevent inflation.