RealtyTrac reports foreclosure filings incrased in 75% of the nation’s metro areas during the first 2 quarters. Statistics from the Department of Labor show unemployment insurance claims fell by 11,000 last week. According to Freddie Mac’s weekly survey, the average rate for a 30-year fixed-rate mortgage decreased to 4.54%. Fiserv predicts that single-family home prices will fall 4.9 percent during the next 12 months.

In The News:

NAHB - “Remodeling Dips but Shows Signs of Stabilization” (7-29-10)

“The remodeling market slid backward during the second quarter, according to the latest National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The RMI (combining current and future market indicators) sunk to 40.7 from 43.8 in the first quarter. Current market conditions slid back to 42.6 from 44.5 in the previous quarter. Future indicators of remodeling business declined to 38.9 from 43.1 in the last quarter.”

CNN - “Foreclosures climb in 75% of metro areas” (7-29-10)

“Foreclosure filings climbed in 75% of the nation’s metro areas during the first half of 2010, according to a report issued Thursday. RealtyTrac, an online marketer of foreclosed homes, said that California, Florida, Arizona and Nevada continue to lead the nation in the rate of foreclosures. Las Vegas was the worst-hit city.”

San Francisco Chronicle – “Feds put up $1 billion more for mortgage relief” (7-29-10)

“Congress has just come up with an extra $1 billion to help people who can’t pay their mortgage because of unemployment or a medical problem. Under this new Emergency Mortgage Relief program, eligible homeowners who are at least three months delinquent can get up to $50,000 apiece in federal loans to pay their mortgages.”

Housing Wire – “Weekly Jobless Claims Beat Consensus, Slip to 457,000″ (7-29-10)

“Initial unemployment insurance claims fell 11,000 in the week ending July 24, beating the market consensus of a 4,000-claim drop. Jobless claims slipped to a seasonally adjusted 457,000 from the previous week’s upwardly revised figure of 468,000, according to new data today from the US Department of Labor. The four-week moving average slipped 4,500 to 452,500 this week.”

Housing Wire – “Weekly Mortgage Rates Hit New Lows” (7-29-10)

“The Freddie Mac survey put the average rate for a 30-year fixed-rate mortgage (FRM) at 4.54% with an average 0.7 origination point for the week ending July 29, down from last week’s average of 4.56% and a year ago, when the average was 5.25%. It’s a new record low for the survey, which began in 1971.”

Housing Wire – “Fiserv Sees More Pain Ahead in House Prices, Projects 4.9% Decline” (7-29-10)

“Fiserv (FISV: 49.22 +0.70%), financial services technology provider, found that national average house prices rose 2% in Q110 from a year before — the first yearly gain since 2006. Fiserv projects that single-family house prices are likely to fall another 4.9% over the next 12 months as tight economic circumstances continue. Continued high unemployment and a large number of distressed properties remaining in markets like Florida, Arizona and Nevada are weighing on the housing market.”

Housing Wire – “SEC Charges Citigroup $75m for Misrepresentation of Subprime Assets” (7-29-10)

“The Securities Exchange Commission (SEC) today charged Citigroup Inc. with misleading investors about the company’s exposure to subprime mortgage assets targeting two Citi executives for their roles in the incident that will cost the company $75m. Citigroup will not dispute the fine, the SEC said, and will pay the full amount.”

Looking Back:

One year ago, the MBA reported that mortgage application volume decreased by 6.3 percent within a week. A bill was being supported by 276 members of the House, which would have audited central banks. About $2.2 trillion of U.S. commercial properties bought or refinanced since 2004 became less valuable than their original price, said Real Capital Analytics in 2009.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor 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.

The NAHB reports that builder confidence in the singe-family home market decreased to the lowest point in a year. Builders began work on 580,000 houses last month, according to the Commerce Department. A survey from REMAX shows that existing home sales increased in June by 5.6% in comparison to the same month a year ago. The Bay Area lost more than 10,000 jobs in June.

In The News:

Sign On San Diego – “Economists say recovery continues, but pace slows” (7-18-10)

“The National Association for Business Economics said its latest survey, released Monday, found 31 percent of businesses added workers between April and June, the highest level in three years. And 39 percent of those surveyed say they expect to hire more workers over the next six months – the most since January 2008. Manufacturers reported the strongest increase in demand and profitability. Finance, insurance and real estate sectors saw the slowest growth.”

NAHB - “Builder Confidence Declines in July” (7-19-10)

“Builder confidence in the market for newly built, single-family homes declined for a second consecutive month in July to its lowest level since April of 2009, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. The HMI fell two points from a downwardly revised number in the previous month to 14 for July.”

Housing Wire – “Monday Morning Cup of Coffee” (7-19-10)

“According to a Sunday story in the Wall Street Journal, the Securities and Exchange Commission (SEC) was split on its decision to accept the $550m settlement in its case against Goldman Sachs (GS: 145.68 -0.34%). The investment bank agreed to pay the biggest fine in SEC history without having to admit fraud in a case that alleged it misguided clients when selling mortgage-backed securities.”

Housing Wire – “Annual Home Sales, Prices ‘Holding its Own’: ReMax Survey” (7-19-10)

“Buyers looking to close on home sales in time to collect the homebuyer tax credit pushed existing home sales up in June 5.6% compared to the same month a year ago, according to a monthly survey of 54 metro areas conducted by the national brokerage chain ReMax. In addition, Denver-based ReMax said home sales prices were up 3.5% year-over-year. Compared to May, transaction volume was up 7.2%. The increases were attributed on the tax credit and said despite the increases, the heightened volume will not be sustained. The chart below tracks transaction volume.”

Contra Costa Times – “10,300 jobs gone in June” (7-19-10)

“The Bay Area lost more than 10,000 jobs in June, crushing hopes that the private sector could spur a quick recovery for the region’s wobbly economy, a state labor report showed. The loss of 10,300 payroll jobs in the Bay Area marked the nine-county region’s worst one-month performance since September, according to the report by the state’s Employment Development Department.”

Bloomberg - “Housing, Leading Index in U.S. Probably Slumped in Sign Recovery Slowing” (7-19-10)

“Builders began work on 580,000 houses last month at an annual rate, down 2.2 percent from May and the slowest pace this year, according to the median estimate of 61 economists surveyed by Bloomberg News before Commerce Department data due July 20. Other reports may show sales of existing homes decreased for a second month and the index of leading indicators declined for the first time in more than a year.”

Realty Times – “Real Estate Outlook: Market Report” (7-19-10)

“The findings: Despite nervousness about the stock market and employment, 66 percent of all consumers ‘believe the economy will hold steady or improve over the next six months.’ Eighty three percent believe their own personal finances will get better or at least hold their own.”

A study from Wells Fargo suggests that California may not experience a double dip in the real estate market. FICO Inc reports 25.5 percent of customers  now have a credit score of 599 or below. HUD is offering a 10 percent discount on its REO properties for non-profit buyers. Orange County housing inventory has inflated by 48% since the beginning of the year.

In The News

Orange County Register – “Homebuilders face ’slow climb’ to recovery” (7-11-10)

“It’s a challenging market, no doubt about it. But builders can find a way to sell homes as long as they pay close attention to their potential buyers. We’ve never subscribed to the idea that the same floor plan and the same marketing campaign will be effective in every situation. It just doesn’t work that way. Builders need to understand exactly what price point, what square footage, what location and what product type will speak to the buyers in a given community. When you understand all those elements, your homes will sell. Take the live-work model, which many builders have struggled with. Earlier this year we opened a live-work community in Stanton, with prices starting at $350,000. So far we have sold all but four units.”

Orange County Register – “Short sales up 74% in region” (7-11-10)

“Riverside County had 3,444 short sales this year, the second-highest number in the region. That’s up 116% from 2009, when the county had 1,593 short sales. San Bernardino County short sales increased 96.7%, to 2,089. During the first five months of 2009, the county had 1,062 short sales.”

Orange County Register – “Tips for the first-time homebuyer” (7-10-10)

“Be prepared. You will be asked for the amount and source of your income; the same for funds for down payment and closing costs; your credit and debt obligations; and permission to run a credit report. Gather your most recent federal tax returns; W2s or 1099s, depending on how you are paid; most recent pay stubs, if salaried; and your most recent statements for bank, investment or retirement accounts. If there are recent large and unusual deposits, be ready to explain where the money came from.”

Sacramento Bee – “Wells Fargo: Housing double-dip not likely in California” (7-12-10)

“San Francisco-based Wells Fargo Bank just released its new California Economic Outlook, saying widespread fears of a derailed housing recovery aren’t likely to materialize in California.”

MSNBC - “Gov’t tries to recoup some Fannie, Freddie losses” (7-12-10)

“The regulatory agency said it has issued 64 subpoenas seeking loan files and other documents to determine whether the sellers of those securities made any false statements or omissions. Fannie and Freddie had tried to do so themselves but have faced resistance in getting the loan documents, said the agency, which was given subpoena power two years ago.”

San Francisco Chronicle – “More consumer credit scores dip to new lows” (7-12-10)

“Figures provided by FICO Inc. show that 25.5 percent of consumers – nearly 43.4 million people – now have a credit score of 599 or below, marking them as poor loan risks. It’s unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use. And it could be years before this group can restore their scores, even if they had strong credit histories in the past.”

Housing Wire – “HUD Gives Nonprofits, Governments 10% Discount on REO” (7-12-10)

“The Department of Housing and Urban and Development (HUD) will give state and local governments and nonprofits participating in the Neighborhood Stabilization Program (NSP) preference to buy its REO at 10% below the appraised value.”

Orange County Register – “Corona del Mar homes hardest to sell” (7-12-10)

“‘Hardest’ market to sell a home in terms of ‘market time’ (supply of homes for sale vs. new purchase deals inked in past month) is Corona Del Mar. Its market time was 15.3 months to theoretically sell all for-sale homes at the current buying pace. A year ago, this town was at 8.3 months.”

Orange County Register – “‘Unrealistic’ sellers flood O.C. home market” (7-12-10)

“Orange County housing inventory has inflated by 48% since the beginning of the year on the backs of unrealistic sellers. … The bottom line: sellers really need to take a hard look in the mirror and ask whether or not they really can drop to the realistic fair market value of their home. If not, they need to stop wasting everybody’s time and pull their home off of the market.”

Orange County Register – “O.C.’s distressed home market grows by 29%” (7-12-10)

“The active distressed inventory has increased from 2,555 homes at the beginning of the year to 3,307, levels not seen since May of 2009. The distressed inventory now represents 31% of the current active inventory. Last year at this time, there were 2,766 distressed homes on the market, 541 fewer than today.”

Realty Times – “Three Levels of Lead Generation” (7-12-10)

“you should have 6 pictures that show off the house to prospective buyers in under a minute and these should include: 1. The front of the house (try to skip the double garage doors!) 2. The Living Room or Area 3. The Kitchen (2 shots of the kitchen focusing on different aspects from different angles if possible) 4. The master bedroom 5. The master bathroom (put the toilet seat down!) 6. The backyard or area”

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.

According to Freddie Mac, the average 30-year fixed mortgage rate dropped to 4.57 percent. International Monetary Fund warns a double dip recession is still possible, despite its prediction that GDP will increase over the next year. Fitch Ratings predicts home improvement spending will increase 3.5% this year. Clear Capital reports national housing prices rose 5.2% during the last quarter.

In The News:

Associated Press - “Mortgage rates drop to new low of 4.57 pct.” (7-8-10)

“The average rate on a 30-year fixed mortgage dropped to 4.57 percent this week, mortgage company Freddie Mac reported Thursday. That’s down from the previous record low of 4.58 percent set last week.”

Housing Wire – “International Monetary Fund Warns of Housing Double-Dip Risk” (7-8-10)

“Signs of recovery in the US economy and housing market are stronger than expected, due to policy response from the federal government, according to the International Monetary Fund (IMF). While IMF expects US gross domestic product (GDP) growth of 3.25% in 2010 and 3% in 2011, unemployment is projected to remain above 9%.”

Housing Wire – “Fitch: Homebuyer Tax Credit Will Boost Home Improvement Spending” (7-8-10)

“Fitch Ratings expects home improvement spending to increase 3.5% in 2010 over 2009 levels, partly due to an influx of home sales incentivized by the first-time homebuyer tax credit”

Housing Wire – “Wells Fargo to Lay Off 3,800 Employees, Leave Non-Prime Space” (7-8-10)

“In a restructuring of its financial division, Wells Fargo (WFC: 26.64 -0.08%) said it will eliminate 2,800 positions in the next two months and another 1,000 people by the end of the year. The bank will close 638 financial stores in the US as it will stop originating non-prime portfolio mortgage loans.”

Housing Wire – “Fannie, Freddie Dropped from New York Stock Exchange” (7-8-10)

“The Federal Housing Finance Agency (FHFA) directed the government-sponsored enterprises (GSEs) in June to de-list from the NYSE and any other national securities exchange. The direction came after the price of their common stock hovered near the minimum average closing price of $1 for more than 30 days for most months since the conservatorship took effect in September 2008.”

Housing Wire – “House Prices Soar 8.8% from 2009: Clear Capital” (7-8-10)

“House prices rose in June across the US in both the rolling quarter and the previous-year data, according to real estate asset valuation data provider Clear Capital. National prices rose 5.2% over the previous three-month period and 8.8% since June 2009. The quarterly and yearly growth seen in June builds on already positive data, after prices climbed 6.8% in May from the year before.”

Housing Wire – “John Burns Sees Housing Market Hit Bottom with Little Downside to Investing” (7-8-10)

“The housing market has improved in the last two years to the extent that John Burns Real Estate Consulting sees the market as possibly approaching the beginning of its next up cycle.”

Bloomberg – “Apartment Vacancies in U.S. Drop From 30-Year High, Reis Says” (7-8-10)

“The vacancy rate for apartment properties was 7.8 percent, down from a 30-year high of 8 percent in the first quarter and up from 7.7 percent a year earlier, according to a report today by the real estate research firm. First-quarter vacancies were the highest since 1980, when Reis began tracking the data.”

Orange County Register – “O.C. builders rank among U.S. top 40″ (7-8-10)

“Seven homebuilding companies based in Orange County or having a strong presence here ranked in Builder Magazine’s newest list of the nation’s Top 100 Builders. Five of them were among the nation’s top 40 builders.”

Looking Back:

One year ago, 68 percent of recent home buyers said price decreases encouraged them to buy a house. PMI forecasted that home prices would decrease through 2011. Default rates doubled for commercial properties valued at more than $108 billion.

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.

The MBA reports mortgage loan application volume increased 6.7 percent from last week. Delinquencies on home equity loans decreased to 4.12% in the first quarter. 89 percent of mortgage lenders intend to, or already, offer Web-based mortgage application services. The average price discount on foreclosed properties nationwide is 26 percent.

In The News:

Mortgage Bankers Association – “Mortgage Refinance Applications Increase in Latest MBA Weekly Survey” (7-7-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 2, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 6.7 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 6.5 percent compared with the previous week.”

CNet - “Freddie, Fannie reject energy retrofit loans” (7-7-10)

“The FHFA said it does not object to all energy retrofit loans, but specifically to those PACE or PACE-like energy loans that are essentially structured as property taxes and, therefore, have first lien. In the event of a foreclosure on the property, those loans are legally required to be paid off first before any money goes to the mortgage lender.”

Los Angeles Times – “Home equity loan delinquencies fall for first time in two years” (7-7-10)

“The percentage of home equity loans on which consumers were at least one payment late declined to 4.12% in the first quarter from 4.32% the previous quarter. Not since the first quarter of 2008, when the rate fell to 2.34% from 2.39%, had there been a decline. Missed payments on consumer loans overall improved for the third straight quarter, the ABA said in its quarterly Consumer Credit Delinquency Bulletin. Bank card delinquencies fell from 4.39% to 3.88% of all accounts — the first time since 2002 that card delinquencies were below 4%.”

Housing Wire – “When it Comes to Servicing Ginnie Mortgages, BofA Scores Again” (7-7-10)

“BofA-serviced Ginnie loans ranked among the lowest in terms of 60-day delinquencies (less than 1% in May), followed closely by Wells Fargo (WFC: 26.67 +6.04%) (just over 1%). Countrywide loans had the highest 60-day delinquency rate of around 3%”

Housing Wire – “Tech Developer’s Survey Finds Lenders Expect Surge in Online Mortgage Volume” (7-7-10)

“18% of mortgage lenders offer so-called ’smart’ Web-based mortgage application services. The survey defines ’smart’ software products as those that are interactive mortgage-application systems that are a fully transactional, Web-based solution that intelligently guides borrowers through the application, adjusting the questions for applicants according to responses. Of the remaining companies that current do not offer the service, 71% said they will adopt online mortgage application technology sometime in the future, while 14% said they would not. The remaining 15% responded they were unsure.”

Bloomberg - “U.S. Commercial Property Sales Trail Six-Year Average” (7-7-10)

“U.S. commercial real estate sales in the first half totaled about a quarter of the average of the previous six years as owners kept properties off the market, impeding investors with record funds for purchases. Buyers and sellers completed $34.2 billion of deals through June, or 26 percent of the average first-half dollar volume since 2004, according to preliminary figures from Real Capital Analytics. The total was about 12 percent of the 2007 peak, when $277.7 billion of properties changed hands in the same period, data from the New York-based real estate research firm show.”

Realty Times – “Short Sale Tactics May Bring on Legal Liabilities For Agents” (7-7-10)

“Real estate agents know that short sales are likely to be time-consuming and frustrating. What many don’t know is that short sales carry high risks of legal liability for agents. One area of short sales that is fraught with liability is in the use of negotiators. In California, short sale negotiators must possess a real estate license and are subject to a variety of regulations. Moreover, a negotiator’s agency relation to the principals is frequently unclear and undisclosed. Undisclosed dual agency is a particular problem.”

Orange County Register – “O.C. builders hit by tax break’s demise” (7-7-10)

“The total number of O.C. sales contracts — the start of escrow for new home purchases — tumbled to 191, down from 218 in April, according to Costa Mesa-based Hanley Wood Market Intelligence, which tracks new home sales. May’s total was up a mere 3.8% from year-ago levels. By comparison, O.C. contracts had been up 39.7% in April. April 30 was the deadline to open escrow on a home purchase to qualify for the federal tax credit.”

Orange County Register – “Calif. has 4th largest foreclosure discount” (7-7-10)

“The company ranked of 44 states and Washington D.C. (other states don’t have enough data for valid analysis, according to Realtytrac) for the gap between pricing for homes sold somewhere in the foreclosure process vs. those that were not anywhere in foreclosure. As for fat foreclosure discounts, Ohio led the nation at 39.5%, followed by Kentucky at 35.2% and Illinois at 35.1%. The average sales price of properties nationwide that sold while in some stage of foreclosure in the first quarter was 26 percent below the average sales price of properties not in the foreclosure process.”

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.

The Commerce Department reports housing starts fell 10% from April. According to the MBA, mortgage application volume increased 17.7 percent from last week. Fitch Ratings Ltd. forecasts that most borrowers who get lower mortgage payments under a federal government program will default within 12 months. New home sales were down 27% in May, according to a John Burns Real Estate Consulting builder survey.

In The News:

CNN - “New home construction sinks 10%” (6-16-10)

“Housing starts fell 10% from April to a seasonally-adjusted annual rate of 593,000 last month, the Commerce Department said. Economists were expecting housing starts to fall to only 655,000. On a year-over-year basis, starts rose 7.8% from May 2009.”

Mortgage Bankers Association – “MBA Report Shows Economic Weakness Continues to Weigh on Commercial Mortgage Performance” (6-16-10)

“The delinquency rate for loans held in CMBS is the highest since the series began in 1997.  Delinquency rates for other groups remain below levels seen in the early 1990’s, some by large margins. Delinquency rates continued to increase in the first quarter for all commercial/multifamily mortgage investor groups, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.”

Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (6-16-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 11, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 17.7 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 29.7 percent compared with the previous week, which was a shortened week due to the Memorial Day holiday.”

Wall Street Journal – “High Default Rate Seen for Modified Mortgages” (6-16-10)

“Fitch Ratings Ltd. forecasts that most borrowers who get lower mortgage payments under a federal government program will default within 12 months. Among those with loans that aren’t backed by any federal agency, the redefault rate within a year is likely to be 65% to 75% under the Obama administration’s Home Affordable Modification Program, or HAMP, according to a report to be released Wednesday by Fitch, a New York-based credit-rating firm. Almost all of those who got loan modifications have already defaulted once.”

Housing Wire – “Builder Survey Reports New Home Sales Down 27% in May” (6-16-10)

“New home sales were down 27% in May, according to a John Burns Real Estate Consulting (JBREC) survey of builders. According to the monthly report, net sales per community were 1.35 units per community, down from last month’s 1.84 units per community. Builders also reported a decline in new housing starts in eight of 10 regions, as builders felt little hurry to start more homes. This echoes the results of a government report that showed the seasonally adjusted annual rate of housing starts declined 10% in May.”

Housing Wire – “Mortgage Defaults, Foreclosures Drop Across California: ForeclosureRadar” (6-16-10)

“Mortgage defaults and foreclosure activity decreased in California from April to May, according to ForeclosureRadar, which tracks filings across the state. Notices of default fell 17% from April to May, and 43% from May 2009. Notices of trustee sale dropped 11% in May and decreased 35% from last year. Past foreclosures, the amount of properties banks repossessed, dropped 5% in May and 13% from a year ago.”

Housing Wire – “Reid Urges 3-Month Extension of Homebuyer Tax Credit” (6-16-10)

“Under the tax credit’s current deadline, qualifying purchases that were under contract by April 30 must close by June 30. Under the proposed amendment introduced by Reid, Isakson and Dodd, that closing deadline would be pushed to Sept. 30, 2010 in an effort to ensure the qualifying sales can close.”

Realty Times – “Should I Buy Older Construction?” (6-16-10)

“Without a full renovation, older homes usually come with a certain level of necessary repair. The electrical wiring may be dated, ungrounded, or made of undesirable material no longer in use. The telephone wiring may not accommodate highspeed data demands. Underground materials used for plumbing may have eroded, compromising the safety of water, or the structural integrity of the foundation. The foundation itself may not be as thick or rigid as newer structures. After all, the specifications for tension, and cement composition have advanced in the last several decades. Although many older homes have had their roofs repaired or replaced, some have gone decades without any care or maintenance. Air Conditioning units, water heaters, air ducts, and household appliances can all be dated and in need of substantial repair or replacement.”

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 A total of 22,270 new and resale houses and condos closed escrow in Southern California last month. According to the NAHB, builder confidence in the market for newly built, single-family decreased this month. Having a home with a view is on the top 10 list of preferences for 44.5 percent of men. Morgan Stanley’s research has lead the company to conclude that low mortgage rates will prevent a double dip in prices.

In The News:

DQNews - “Southland median sale price back over $300K; sales at 4-year high” (6-15-10)

“A total of 22,270 new and resale houses and condos closed escrow in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 9.7 percent from 20,299 in April, and up 7.2 percent from 20,775 in May 2009, according to MDA DataQuick of San Diego.”

NAHB - “Builder Confidence Declines in June” (6-15-10)

“Snapping a string of two consecutive monthly gains, builder confidence in the market for newly built, single-family homes fell back to February levels, before the beginning of the home buyer tax credit-related surge, according to results of the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI dropped five points to 17 in June.”

Los Angeles Times – “California’s economy to see sluggish recovery this year, UCLA economists say” (6-15-10)

“California stands to gain some jobs this year but recovery will be sluggish, and the state’s inland areas will bear the brunt of the continuing economic pain, according to a forecast scheduled to be released Tuesday by UCLA’s Anderson School of Business.”

Inman - “Top 10 sought-after home features” (6-15-10)

“Men and women’s top 10 preferences were largely the same with two exceptions: having a view made it onto the men’s list (and not the women’s list), with 44.5 percent of men saying it was a high priority; and wood floors made it onto the women’s list (and not the men’s), with 40.9 percent of women ranking them highly.”

Housing Wire – “Low Mortgage Rates Help Block Double-Dip Threat: Morgan Stanley” (6-15-10)

“The US economics team at financial firm Morgan Stanley (MS: 25.96 +2.49%) says in their latest research report that recent gains in the nation’s economy point to a remote chance of a so-called double dip — where recent upticks in economic activity are only temporary — citing low mortgage rates as a key driver in drawing this conclusion.”

Housing Wire – “Shadow Inventory to Take 3 Years to Clear: Standard & Poor’s” (6-15-10)

“The shadow inventory of distressed properties that back residential mortgage-backed securities will take nearly three years to clear at the current sales rate, according to the credit rating agency, Standard & Poor’s (S&P). S&P puts the total principal balance of the shadow inventory at $480bn or 30% of the entire non-agency market.”

Housing Wire – “BofA Permanent HAMP Modifications Passes 70,000 in May” (6-15-10)

“Bank of America (BAC: 15.76 +2.27%) pushed its total number of permanent modifications under the Home Affordable Modification Program (HAMP) to roughly 70,000 in May, up from 56,400 in April.”

Housing Wire – “MGIC Writes $800m in Monthly Mortgage Insurance, Denies Hundreds of Claims” (6-15-10)

“Mortgage Guaranty Insurance Corp. (MGIC), the principal subsidiary of MGIC Investment Corp. (MTG: 9.12 +8.19%), wrote $800m of primary new mortgage insurance in May, according to monthly operations data. The company denied or rescinded — or canceled the policy relating to — almost 1,000 mortgage insurance claims in the month, helping to further reduce the number of delinquencies on its books, according to a press release.”

Housing Wire – “More Funds Repaid to TARP than Outstanding in May: Treasury” (6-15-10)

“Treasury noted in the April update on TARP that it expects to spend less than $550bn of the $700bn authorized for the program, and expects to recover all but $117bn — an estimate that was subsequently revised to $105.4bn. Of $384bn in total TARP disbursements, more than half — or $194bn — was repaid through May, leaving only $190bn outstanding. The sale of 1.5bn shares of Citigroup (C: 3.975 +2.45%) pushed the repayments past outstandings for the first time in TARP’s history.”

Housing Wire – “In These Thin Times, House Sizes Also Begin to Shrink” (6-15-10)

“In 2007, the average single-family home in the United States peaked at 2,521 square feet. That number did not vary greatly into 2008. However, according to a 2009 report from the Census Bureau, it’s now at an average of 2,438 square feet.”

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.

The MBA believes the new FHA Reform Act will have a positive effect on FHA’s finances. Tom Beede of Metrolist Services reports 58 percent of May home sales in Sacramento County were short sales. Congress may extend the home-buyer tax credit due to the inability of lenders to finish all applications within the current due date.

In The News:

Mortgage Bankers Association – “MBA Reacts to House Passage of FHA Reform Act” (6-11-10)

“FHA is playing a critical role in today’s housing market, helping to provide more affordable financing for borrowers looking to purchase or refinance a home.  The reforms contained in this bill will help stabilize FHA’s finances by allowing the agency to raise its annual premiums and better take corrective action against lenders who are putting the program at risk.”

Sacramento Bee – “Home Front: Short sales — and ways to exploit them — rise in Sacramento” (6-11-10)

“In mid-May, 58 percent of homes for sale in Sacramento County were short sales and only 13 percent were bank repossessions, said Tom Beede, president and chief executive officer of Metrolist Services Inc.”

Wall Street Journal – “Congress Could Extend Home-Buyer Tax Credit Closing Deadline” (6-10-10)

“What if the home-buyer tax credit worked too well? That’s the latest concern from the real-estate industry, which says that a last-minute home-buying rush in April created bottlenecks at lenders and real-estate service companies that may not be able to finalize purchases in time for tens of thousands of buyers to receive a tax credit worth up to $8,000.”

Bloomberg - “Builders Rush to Complete Houses by U.S. Tax Credit Deadline” (6-11-10)

“U.S. builders such as LGI Homes are on a tight deadline to finish houses by the end of June so purchasers can get a federal tax credit of as much as $8,000. Buyers had to sign a contract by April 30 and must complete the transaction by July 1 to qualify. That’s speeding up a construction process that for some builders can take five to six months.”

Bloomberg - “JPMorgan Sells $716.3 Million of Commercial Mortgages” (6-11-10)

“JPMorgan Chase & Co. sold $716.3 million of bonds backed by commercial mortgages in the second offering of the debt this year, according to a person familiar with the transaction.”

Inman - “Understanding the Gen Y gender gap” (6-11-10)

“women are fundamentally different than men in what they look for in a home, Chung said. Part of being fiscally conservative is that they are more willing to make trade-offs as far as home luxuries in favor of preferred community characteristics.”

Inman - “Yahoo Real Estate climbs to No. 2″ (6-11-10)

“Realtor.com maintained its lock on the No. 1 spot with 6.2 percent of traffic; Rent.com also kept its No.4 spot with 2.8 percent of traffic. Trulia jumped into the top five with 2.7 percent of traffic, bumping ZipRealty down to sixth place with 2.4 percent market share.”

Wall Street Journal - “Is It Better to Buy New Home or ‘Used’?” (6-11-10)

“It’s impossible to know how much negotiating power you’ll have with each of these sellers until you know how desperate each is to sell. So the first thing you should do is to ask your agent to find out as much as possible about what’s motivating each: Is the resale seller just testing the market, or going through a divorce? Is the builder opening up new projects or has he been sitting for months on stale inventory? You should find out how long each house has been on the market, whether there have been price drops, how often these have occurred and how deep they were. This will give you a sense of how eager each party is to deal with you.”

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.

The NAHB reports U.S. home-builder sentiment rose in May to the highest level in more than 2-1/2 years. The FDIC has shut down 72 banks so far in 2010. Based on a survey of 3,000 Western Union customers, 45% of respondents with a modified mortgage indicated scheduling regular payments will prevent re-default. According to Altera Real Estate, current housing demand has reached 2005 levels, just before the turn in the housing market.

In The News:

North Bay Business Journal – “115 agencies statewide defer impact fees” (5-17-10)

“Assembly Bill 2604 allows local governments to defer until close of escrow the collection of fees used to fund construction of public improvements or facilities. Previously, the fees had to be deferred until issuance of the certificate of occupancy or building permits, unless the funds were needed immediately or within 12 months.”

CNBC - “Homebuilder Confidence Hits 2-1/2 Year High in May” (5-17-10)

“U.S. home-builder sentiment rose in May to the highest level in more than 2-1/2 years, boosted by a homebuyer tax credit and strengthening economy, the National Association of Home Builders said on Monday. ”

Housing Wire – “Monday Morning Cup of Coffee” (5-17-10)

“Regulators shuttered four banks on Friday, located in Georgia, Illinois, Michigan and Missouri. The closures are expected to cost the Federal Deposit Insurance Corp. (FDIC) Deposit Insurance Fund (DIF) $301.5m. They bring the running 2010 total to 72 banks closed so far this year. By the same week last year, only 33 banks had been shut down.”

Housing Wire – “Western Union Sees Borrowers Take Control of Mortgage Fate” (5-17-10)

“Based on a survey of 3,000 Western Union customers, 45% of respondents with a modified mortgage indicated scheduling regular payments will prevent re-default. Almost one-third believe modifying their mortgage will improve their debt situation. But Western Union noted a need for greater borrower education in terms of loss mitigation options. For example, approximately half of respondents with a mortgage do not fully understand the requirements to qualify for modification or refinance.”

Orange County Register – “Home demand off 5% as tax break ends” (5-17-10)

“Current housing demand has reached 2005 levels, just before the turn in the housing market. Demand, the number of new pending sales over the prior month, decreased by 209 homes over the prior two weeks and now totals 3,770, a 5% drop.”

Inman - “6 ways agents avoid ‘clunker’ clients” (5-17-10)

“One of the most important steps you can take to attract more high-quality new business is to know who is a good fit for your business and who is not. Because we are still experiencing a sluggish market in most areas, it’s tempting for agents to take almost any customer who wants to buy or sell a piece of real estate. This is a poor strategy in the long run, and here’s why: When you’re willing to work with almost anyone, you often say “yes” to clients who will never close a transaction.”

Looking Back:

One year ago, the months of unsold, Bay Area inventory of existing single-family homes priced above $1 million reached 14 months. The government considered lifting the $729,750 conforming loan limit in place for high-cost markets. Builder confidence increased for two straight months in May 2009.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor 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.