Two Wall Street firms claim housing prices will continue to fall through the present quarter. REIS reports the national office vacancy rate fell to 17.5% in the first quarter. A Harris Poll shows 22% of U.S. homeowners are having difficulty making their mortgage payments. A new RealtyTrac feature allows users checking home listings to see how much equity each property has.

In The News:

NAHB - “Home Builders Applaud Congressional Passage of 1099 Repeal” (4-5-11)

“The Senate today approved legislation supported by the National Association of Home Builders (NAHB) to repeal a burdensome tax paperwork requirement that could cost small businesses thousands of dollars each year. The bill now goes to President Obama for his approval.”

Orange County Register – “59% of H.B. homes pending sale are distressed” (4-5-11)

“59% of homes in escrow are short sales, in foreclosure or bank owned. 42% of homes sold in March were distressed.”

Housing Wire – “Democrats’ homeownership assistance bills face fiscal resistance” (4-5-11)

“Senate Bill 690 and H.R. 1238 — would create a new executive position under the Treasury Department to advocate for homeowners and free up remaining TARP funds to help distressed homeowners with legal assistance.”

Housing Wire – “KBW says eight GSE reform bills barely dent mortgage market” (4-5-11)

“the proposed legislation addresses oversight issues, which means little structural change will manifest because of them, according to a report released by KBW Tuesday.”

CNBC - “No Spring Break in Housing: Prices Likely to Keep Falling” (4-4-11)

“Housing prices will not get a Spring bounce and will actually fall during the industry’s historically best season as buyers continue to wait for that elusive ‘housing bottom,’ according to surveys and analysis by two top Wall Street firms.”

Wall Street Journal – “Lenders Near Pacts With Regulators in Foreclosure Probe” (4-4-11)

“Fourteen U.S. lenders are on the verge of agreements with federal bank regulators to overhaul their handling of foreclosures and treatment of delinquent borrowers in response to allegations of abuses that emerged last fall.”

Bloomberg - “KB Home Reports Wider First-Quarter Loss as Revenue and Orders Plunged” (4-5-11)

“KB Home (KBH), the Los Angeles-based homebuilder that targets first-time buyers, fell the most in four months in New York trading after reporting a bigger-than- expected loss as orders plunged.”

Bloomberg - “Office Market in U.S. Begins Recovery as Vacancy Rate Declines” (4-5-11)

“The national vacancy rate fell to 17.5 percent in the first quarter from 17.6 percent in the previous three months, Reis Inc. said in a report today. The drop was the first since July through September of 2007.”

Orange County Register – “U.S.: World’s 7th worst housing market” (4-5-11)

“The United States had the 7th worst housing market in the world in the fourth quarter, according to year-to-year price changes tracked by the Knight Frank Global House Price Index.”

Orange County Register – “32 million people struggling to pay mortgage” (4-5-11)

“A new Harris Poll shows that 22% of U.S. homeowners with mortgages — 32 million people — are having a tough time making payments, including 7% — 11 million folks — who say they’re experiencing ‘a great deal of difficulty’.”

Orange County Register – “Irvine housing speeds up 17%” (4-5-11)

“Irvine’s housing market has 85 days worth of inventory of residences to sell vs. 96 days countywide. That’s according to the latest inventory math of Orange County broker Steve Thomas.”

Housing Wire – “New RealtyTrac feature lists property equity” (4-5-11)

“RealtyTrac unveiled a new feature on its website Tuesday that enables users going through the home listings to see how much equity each property has.”

Housing Wire – “Wells Fargo-Wachovia settles CDO claim with SEC for $11 million” (4-5-11)

“A Securities and Exchange Commission investigation into Wachovia Capital Markets’ sale of two collateralized debt obligations supported by residential mortgage-backed securities resulted in Wells Fargo Securities agreeing to pay $11 million in fines and penalties this week.”

Looking Back:

Pending home sales increased by 8.2 percent from January to February. A new rule will require all new lender applicants for FHA programs to possess a minimum net worth of $1 million. According to LPS, the average loan in foreclosure is 401 days delinquent.  A proposed bill, House Resolution 4935, will prohibit mortgage servicers from holding another mortgage on a property that also secures the serviced mortgage.

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.

Results from an NAHB survey show builders expect homes to average 2,152 square feet by 2015. Lockhart, from the Atlanta Fed, expects the economy to grow up to 4% over the next 2 years. FNC Inc said over 25% of foreclosed properties liquidated in 2008 and 2009 sold at more than a 40% discount. Bank regulators are attempted to push new rules that would require lenders to offer borrowers more principal write-downs.

In The News:

NAHB - “NAHB Study: New Homes in 2015 will be Smaller, Greener and More Casual” (3-7-11)

“Builders surveyed expect homes to average 2,152 square feet in 2015, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010. To save on square footage, the living room is high on the endangered list – 52 percent of builders expect it to be merged with other spaces in the home by 2015 and 30 percent said it will vanish entirely.”

Inman - “Bank regulators push for principal write-downs” (3-7-11)

“If accepted by lenders, the formulas would force them to offer more borrowers principal write-downs, the Journal said, which are considered to be more effective in preventing foreclosure than lowering a borrower’s interest rate or extending the loan term.”

Wall Street Journal – “FHA Powers What’s Left of the Home Market” (3-7-11)

“About 56% of mortgages for a home purchase were FHA-insured in 2009, up from 6% in 2007, according to a report from the George Washington University School of Business. Many FHA borrowers are first-time buyers drawn by a down-payment requirement of just 3.5% of a home’s purchase price. The FHA currently can insure loans of up to $729,750 in high-cost markets, but the Obama administration recently recommended that those higher limits, which vary by market, expire in October. That would push the top limit down to $625,500, shrinking the pool of eligible properties. And those limits may be reduced even further.”

Housing Wire – “Housing remains economy’s weak spot, Atlanta Fed CEO says” (3-7-11)

“As for the overall economy, Lockhart believes it’s ‘demonstrating moderate strength’ and expects growth in the range of 3% to 4%, with gradual employment increases over the course of the next one to two years.”

Housing Wire – “Higher down payments will stifle mortgage market, CRL says” (3-7-11)

“Policy proposals suggesting a 10% to 20% hike in mortgage down payments could derail the housing recovery, the Center for Responsible Lending said in a new report.”

Housing Wire – “Monday Morning Cup of Coffee” (3-7-11)

“More than one quarter of foreclosed properties liquidated in 2008 and 2009 sold at more than a 40% discount, according to one mortgage technology firm. FNC Inc. said the bottom quarter of foreclosed properties sold at deep discounts again in 2010, while the remaining 75% experienced signs of modest improvement.”

Contra Costa Times – “Pleasanton real estate investor pleads guilty to rigging foreclosure auctions” (3-6-11)

“Yama Marifat, 38, along with other participants agreed not to bid against each other at public real estate auctions in San Joaquin County, the U.S. attorney’s office said. After one of them would secure the property at a rock bottom price, the group would meet privately and rebid the property among themselves. The conspirator with the highest bid got the property and the difference between the auction price and the final sale price was split among those involved, prosecutors said.”

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.

Statistics from MDA Dataquick show 4,458 new and resale houses and condos sold in Southern California last month. The CAR reports California home sales rose 5% in January. CoreLogic claims national home sales fell 12% year over year. FHA intends to raise its mortgage premiums by 1/4 of a point.

In The News:

Bloomberg - “U.S. Homebuilder Confidence Stagnates in February on Slow Sales” (2-15-11)

“The National Association of Home Builders/Wells Fargo sentiment index registered a reading of 16 for the fourth consecutive month, in line with the median forecast of economists surveyed by Bloomberg News, data from the Washington- based group showed today. Readings below 50 mean more respondents said conditions were poor.”

MDA DataQuick – “Southern California Home Sales, Median Sale Price Edge Lower” (2-15-11)

“Last month 14,458 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 26.0 percent from 19,528 in December, and down 5.9 percent from 15,361 in January 2010, according to DataQuick Information Systems of San Diego.”

CAR - “January sales and price report” (2-15-11)

“Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 546,420 in January, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide, representing 90 percent of the market. January’s sales were up 5.1 percent from December’s revised pace of 520,080 and up 2.5 percent from the 532,870 sales pace recorded in January 2010.”

USA Today – “Builders offer MPG-like home efficiency labels” (2-15-11)

“KB Home, one of the nation’s largest builders, announced Monday its plans to have an EPG (Energy Performance Guide) on each of its U.S. homes by the end of this month, and other production builders plan to follow.”

Housing Wire - “Majority of Freddie Mac borrowers refinanced to fixed-rate loans in 4Q” (2-15-11)

“More than 95% of borrowers refinanced to a fixed-rate mortgage, with a strong trend toward shorter-term deals, according to the agency’s quarterly Product Transition Report. Of the borrowers who refinanced from a 30-year FRM, almost one-third chose a 15- or 20-year loan, the highest share since the first quarter of 2004.”

Housing Wire – “Home sales fell 12% in 2010: CoreLogic” (2-15-11)

“U.S. home sales totaled 3.6 million in 2010, a 12% drop from the year before that pulled prices down with it, according to data provider CoreLogic”

Housing Wire – “FHA to increase mortgage insurance premiums one quarter of one point” (2-15-11)

“The Federal Housing Administration is increasing its annual mortgage insurance premium one quarter of one point on all 15-year and 30-year mortgages backed by the agency.”

Housing Wire – “Even with bank-constricted pipeline, some foreclosures auctions rise” (2-15-11)

“Foreclosure auction sales grew as much as 50% in some states during January as foreclosure moratoriums came to an end, sending hundreds of distressed properties back to the auction block”

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 decreased in December. However, Fannie Mae expects housing starts to triple by 2013, and the nation’s largest home builders announced plans to increase activity by 10%.  RealtyTrac claims foreclosure starts in California decreased 33% in 2010.

In The News:

Mortgage Bankers Association – “Applications Increase in Latest MBA Weekly Survey” (1-19-11)

“The Market Composite Index, a measure of mortgage loan application volume, increased 5.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.4 percent compared with the previous week.”

New York Times – “U.S. Housing Starts Slowed Sharply in December” (1-19-11)

“Housing starts in the United States dropped to an annual rate of 529,000 units, the Commerce Department said on Wednesday, down from November’s 553,000 and well below forecasts of about 550,000 in a Reuters poll. At current levels, starts account for less than a quarter of their boom-time peaks.”

Housing Wire – “Bair pushes for foreclosure claims review panel” (1-19-11)

“Federal Deposit Insurance Corp. Chairman Sheila Bair wants a foreclosure claims commission set up, similar to the one established during the oil spill crisis in the Gulf of Mexico last year, to help homeowners victimized by improper foreclosures.”

Housing Wire – “December home sales down 5% over a year: RE/MAX” (1-19-11)

“After five consecutive months of declines, monthly home sales rose 13.2% in December from the prior month, according to the RE/MAX National Housing Report released Wednesday.”

Housing Wire – “Fannie Mae: Housing starts to triple by 2013 to nearly 1.5 million” (1-19-11)

“Despite the still fragile housing market, Fannie Mae expects housing starts to triple by 2013. According to the agency’s economic outlook, housing starts are predicted to increase 17.3% and hit 710,000 this year, with another 47% increase to 1.1 million in 2012 and another gain of 42% in 2013 to nearly 1.5 million.”

Housing Wire – “Foreclosures increase 2% in 2010, decline in hotspots” (1-18-11)

“ForeclosureRadar, which tracks foreclosure data on the West Coast, reported 338,999 foreclosure starts in California in 2010, down 33% from one year prior. Arizona filings fell 18% to 119,790, and Nevada filings fell 19% to 86,010.”

Bloomberg - “Biggest U.S. Homebuilders Take Over Market as New-Home Sales Begin Rebound” (1-18-11)

“D.R. Horton Inc., Lennar Corp. and Toll Brothers Inc. are among companies planning to boost their community counts by at least 10 percent this year after writing down property values, buying land at discounted prices and obtaining financing unavailable to smaller, closely held builders.”

Bloomberg - “Wells Fargo Refuses to Settle Fannie, Freddie Refund Demands” (1-18-11)

“Prodded by lawmakers, Fannie Mae and Freddie Mac have pressed banks including Wells Fargo to buy back mortgages that were based on faulty data about the homes and borrowers. Wells Fargo said today in its fourth-quarter report that demands from the government-owned mortgage companies declined for a second straight quarter and now stand at $1.5 billion.”

Bloomberg - “Global Commercial Property Investment May Rise 25% in 2011, JLL Reports” (1-18-11)

“Investment in commercial property may rise by 25 percent worldwide this year, after returning confidence produced the most deals in the fourth quarter since 2007, Jones Lang La Salle Inc. said.”

Looking Back:

One year ago, MDA Dataquick’s monthly report showed that 22,328 homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange County in one month . AFIRE conducted a survey in which 51 percent of foreign investors claimed the US provided the best opportunity for capital appreciation. Builder confidence decreased from the previous month. Fitch Ratings saw many positive signals for housing and other related industries which they believed would lead to a strong recovery.

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.

6,111 new and resale houses and condos were sold in the Bay Area last month, according to MDA DataQuick. Freddie Mac reports the 30-year mortgage rate has rose again to 4.83%. Statistics from CoreLogic show home prices declined 3.93% in October from July. Three members of congress introduced a bill which may put an end to the use of MERS by GSEs.

In The News:

DQNews - “Bay Area November Home Sales, Median Price Down from a Year Ago” (12-16-10)

“A total of 6,111 new and resale houses and condos were sold in the nine-county Bay Area last month. That was down 0.2 percent from 6,122 in October and down 11.2 percent from 6,878 in November 2009, according to MDA DataQuick of San Diego.”

NAHB - “Housing Starts Rise 3.9 Percent in November” (12-16-10)

“Nationwide housing starts rose 3.9 percent in November to a seasonally adjusted annual rate of 555,000 units from an upwardly revised number in the previous month, according to newly released data from the U.S. Commerce Department. This marked the first upward movement in new-home production since August, and was entirely attributable to a nearly 7 percent gain in single-family home building.”

Housing Wire – “Government guarantee expected for one-third of MBS in 2011″ (12-15-10)

“Government-backed bond issuer Ginnie Mae’s share of mortgage-backed securities issuance should reach 32% in 2011, continuing a steady growth seen after the financial crisis of 2008, Deutsche Bank analysts said.”

Housing Wire – “Jobless claims down slightly to 420,000″ (12-16-10)

“The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Dec. 11 fell by 3,000 from the previous week’s upwardly revised figure of 423,000.”

Housing Wire – “Freddie Mac: mortgage interest rates rose again last week” (12-16-10)

“The government-sponsored enterprise said its primary mortgage market survey showed the average rate for a 30-year, fixed mortgage rose to 4.83% for the week ending Thursday from 4.61% a week earlier. The rate is now at the highest level since May. The average rate for a 15-year, fixed mortgage increased to 4.17% from 3.96% the prior week, according to the Freddie Mac survey.”

Housing Wire – “Home prices down for third straight month: CoreLogic” (12-16-10)

“Home prices declined 3.93% in October from the previous three months, the third straight report of declines as any hope for a recovery in early 2011 begins to fade, according to data from CoreLogic (CLGX: 18.26 +1.00%).”

Housing Wire – “Bill aims to end GSE affiliation with MERS” (12-16-10)

“Three congressional representatives recently introduced a bill into the House that would gradually phase out the use of Mortgage Electronic Registration Systems, commonly called MERs, within the government-sponsored enterprises as well as Ginnie Mae.”

Housing Wire – “Foreclosure inventories rise as delinquencies drop in November: LPS” (12-16-10)

“Lender Processing Services (LPS: 30.03 -0.23%) said the delinquency rate for loans that are 30 or more days past due, but not in foreclosure was 9.02% in November, down nearly 3% from October and down 15.6% from November 2009.”

Bloomberg - “Builders Probably Began Work on More U.S. Houses Following October Plunge” (12-16-10)

“Housing starts climbed 6 percent to a 550,000 annual rate, according to the median estimate of 76 economists surveyed by Bloomberg News. Work slumped in October to the slowest pace since April 2009’s record low. Building permits, a proxy of future construction, may have also increased.”

Bloomberg - “Banks Push Fed to Curb Borrowers’ Right to Rescind Mortgages” (12-16-10)

“Mortgage firms are pressing the Federal Reserve to curb homeowners’ right to invalidate loans based on flawed documents — a right consumer groups say is one of the few weapons borrowers have to battle unfair lending.”

Bloomberg - “U.S. Foreclosure Filings Drop to Two-Year Low Amid Lender Delays” (12-16-10)

“A total of 262,339 U.S. properties received default or auction notices or were seized in November, down 21 percent from October and 14 percent from a year earlier, RealtyTrac said in a report today. Those were the biggest monthly and annual declines since the Irvine, California-based data company began reports in January 2005. One in every 492 households got a filing.”

Looking Back:

One year ago, the Wall Street Journal reported that people were increasingly willing to abandon mortgage payments for becoming renters. Housing starts climbed almost 9%. The FDIC offered some reprieve from securities accounting rules for the next year. The Bureau of statistics released their real earnings report stating that average hourly earnings fell by .5%.

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 200 podcasts in our free investor radio archive.

16,208 new and resale houses and condos sold in Southern California in November. The NAR claims 9 of the 10 most cost-effective home repair projects in terms of value recouped are exterior replacement projects. Keefe, Bruyette & Woods expects revenue from multifamily real estate investment trusts to grow at an annual rate of 4.6% in 2011. Investor confidence in U.S. commercial property is the highest since 2007, according to Bank of America.

In The News:

NAHB - “Builder Confidence Remains Flat in December” (12-15-10)

“Builder confidence in the market for newly built, single-family homes remained unchanged in December from the previous month at 16 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today.”

MDA DataQuick – “Southland Home Sales Dip; Prices Change Little” (12-15-10)

“A total of 16,208 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 3.2 percent from 16,744 sales in October, and down 15.5 percent from 19,181 in November 2009, according to MDA DataQuick of San Diego.”

NAR - “Home Owners Recoup More with Exterior Replacement Projects, REALTORS® Report” (12-15-10)

“Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1 percent of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average”

Housing Wire – “KBW: Sunny days ahead for multifamily REITs” (12-15-10)

“Revenue brought in by multifamily real estate investment trusts is expected to grow at an annualized rate of 4.6% in 2011, according to an outlook released by investment bank Keefe, Bruyette & Woods. That estimate is up from the firm’s previous estimate of 3.6% released in early December.”

Housing Wire – “New CRA rule gives banks credit for work in high-foreclosure areas” (12-15-10)

“The rule changes the definition of ‘community development’ in CRA regulations to include loans, investments and services in areas targeted by the Department of Housing and Urban Development’s Neighborhood Stabilization Program. According to the final rule, high levels of foreclosures are expected into 2012 and beyond, which will continue to effect low- and moderate-income areas.”

Bloomberg - “Real Estate Avoids `Catastrophe’ With Yields at ’07 Levels: Credit Markets” (12-15-10)

“Investor confidence in U.S. commercial property is the highest since the 2007 market peak, a sentiment reflected in bonds of real-estate companies that own everything from New York skyscrapers to California strip malls. Yields on debt issued by real-estate investment trusts average 210 basis points more than Treasuries, the least since Nov. 12, 2007, according to Bank of America Merrill Lynch index data.”

Looking Back:

One year ago, home sales decreased by 13.3 percent in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange County. The Federal Reserve planned to leave interest rates at the record low. Research from Trulia and RealtyTrac showed that 43% of U.S. adults would consider buying foreclosed property. A survey from JBREC showed that 57 percent of home builders expected to receive more revenue in 2010 than 2009.

According to Freddie Mac, 30-year mortgage rates increased to 4.61%. The Labor Department reports jobless claims decreased 4% last week. Clear Capital claims national home prices dropped 5.8% in November. Fitch Ratings forecasts a 10% decline in home prices during 2011.

In The News:

NAHB - “NAHB’S Multifamily Production and Vacancy Indices Show Increased Confidence” (12-9-10)

“Serving as leading indicators for the sector, two composite multifamily indices produced from NAHB’s survey of multifamily builders and property managers showed improvement in the third quarter of 2010. The NAHB Multifamily Production Index (MPI) increased to a value of 35.6, up from the 26.6 level reported for the second quarter. This is the highest the MPI has been since 2007.”

Mercury News – “Mortgage rate for 30-year fixed loans hits 4.61 percent” (12-9-10)

“Freddie Mac said Thursday that the average rate on a 30-year fixed loan increased sharply from last week’s rate. And it is well above the 4.17 percent rate hit a month ago — the lowest level on records dating back to 1971.”

Housing Wire – “Jobless claims fell nearly 4% last week” (12-9-10)

“Initial jobless claims fell nearly 4% last week to 421,000 after coming in at the lowest level in two years a few weeks ago. The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Dec. 4 decreased by 17,000 from the previous week’s upwardly revised figure of 438,000.”

Housing Wire – “Zillow: Home values crater by $1.7 trillion in 2010″ (12-9-10)

“U.S. homes are expected to lose more than $1.7 trillion in value this year, 63% more than the estimated $1 trillion lost in 2009, according to Zillow.”

Housing Wire – “Double dip in some markets drag home prices down 5.8%: Clear Capital” (12-9-10)

“Home prices in November dropped 5.8% over the previous three months and are down 2.7% from a year ago, according to real estate analytics firm Clear Capital.”

Housing Wire – “Fannie Mae survey finds traditional homeownership changing” (12-9-10)

“51% of survey respondents said the housing crisis has not affected their overall willingness to buy a home, 33% said they would be more likely to rent their next home than buy. In January, 30% of Americans surveyed said they would rent a home the next time around.”

Housing Wire – “Fitch sees 10% drop in home prices in 2011, negative outlook for MBS” (12-9-10)

“Fitch Ratings expects another 10% decline in home prices in 2011, as the supply of distressed properties continues to weigh down the housing market. Accordingly, analysts maintained the agency’s negative outlook for the residential mortgage-backed securities space and said 53% of all investment-grade RMBS rated by Fitch have a negative outlook.”

Looking Back:

One year ago, Gov. Schwarzenegger signed a bill which ensured that consumers could choose their own real estate service provider when purchasing a foreclosure. According to Zillow, Bay Area properties lost 3 percent of their value during the first 11 months of 2009. 18 percent of FHA loans were either delinquent or in foreclosure. Statistics from Freddie Mac showed that national home prices increased by .9 percent during the second quarter of 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 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 200 podcasts in our free investor radio archive.

Resources:
Foreclosure Freeze Chills Home Buying
Jobless claims continue bouncing around with 6.3% rise last week
Consumer confidence in Nov. hits 5-month high
Freddie Mac to suspend foreclosure evictions this holiday season
Fed made $9 trillion in emergency overnight loans
Fed data reveal wide scope of loan action during financial crisis
Fannie, Freddie Defend Foreclosures Amid Criticism

Today’s News Synopsis:

New Federal regulations on real estate appraisals have been released. FHA has chosen to leave the loan limit at $729,750 for 2011. Some builders are experiencing a 15 to 25 percent decrease in construction costs. The Bureau of Labor Statistics reports the unemployment rate increased to 9.8%.

In The News:

Wall Street Journal – “Deficit Plan Fails to Win Panel Support” (12-3-10)

“The president’s U.S. deficit commission received the backing of a majority of its 18-strong panel, but fell short of the 14 votes needed to possibly trigger congressional votes on its recommendations.”

Housing Wire – “Regulators set final guidance on appraisals” (12-3-10)

“Federal regulatory agencies released final guidance Thursday on how financial institutions will conduct real estate appraisals, the first nationwide update since 1994.”

Housing Wire – “Nonfarm payrolls add 39,000 jobs in November,unemployment rate up to 9.8%” (12-3-10)

“Nonfarm payroll employment rose slightly last month but considerably lower than most analysts were projecting adding just 39,000 jobs, and the unemployment level increased to 9.8%. The Labor Department’s Bureau of Labor Statistics said employment in most industries changed little during November although temporary workers and the health care sectors continue to see jobs gains while retailing shed another 28,0000 jobs during the month.”

Housing Wire – “FHA loan limit ceiling unchanged for 2011″ (12-3-10)

“The Federal Housing Administration released approved loan limits on mortgages it would insure in 2011, leaving the ceiling unchanged at $729,750. The Economic Stimulus Act of 2008 and the Housing and Economic Recovery Act of 2008 raised the FHA loan-limit ceiling to help stabilize a shaky housing market. The national floor remains unchanged as well at $271,050.”

Housing Wire – “Bair wants mortgages modified to mitigate losses before starting foreclosure” (12-3-10)

“Bair said servicing agreements need to give servicers the authority to attempt to mitigate losses in a timely manner and modify loans to address reasonably foreseeable defaults before putting the mortgage into the foreclosure process.”

Bloomberg - “Toll Brothers Deposits Rise 10% as Mortgage Rates Increase, Chairman Says” (12-3-10)

“Toll Brothers Inc., the largest U.S. luxury-home builder, saw deposits increase 10 percent compared with a year earlier in the past two weeks as mortgage rates began to rise, Chairman Robert Toll said.”

Orange County Register – “Builders benefit from cost savings” (12-3-10)

“Builders say construction costs are down 15 to 25 percent. That translates into an average cost of $100,000 to $140,000 for just the ‘sticks and bricks’ (without land) for a modest, 2,000-square-foot house.”

Realty Times – “Let it Shine, It’s Not Just Paint Color That Counts” (12-3-10)

“Many new tract homes are painted using a flat paint. While that may look nice at first, it can be very difficult to clean and instead of wiping off walls, you may find you have to touch them up with paint more frequently. Thankfully there are some other paint finishes that look great and are a bit more durable and easy to clean. The eggshell and low-sheen finishes put off a higher shine but they seem to last longer, stay cleaner, and are all around easier to maintain.”

Looking Back:

One year ago, Fannie Mae increased its minimum borrower credit score to 620. According to Lender Processing Services, loans were deteriorating 3 times faster than they are being approved. The average interest rate for 30-year, fixed rate mortgages declined to 4.7%

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 200 podcasts in our free investor radio archive.

16,744 new and resale homes sold in Southern California during October. Builder confidence increased slightly this month, according to the NAHB. Sean O’Toole of ForeclosureRadar believes the foreclosure investigation will only have a brief effect on the market. FHA wrote $319 billion in new insurance in 2010.

In The News:

DQNews – “Southland Home Sales Fall, Prices Flat” (11-16-10)

“A total of 16,744 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 7.4 percent from 18,091 in September, and down 24.3 percent from 22,132 for October 2009, according to MDA DataQuick of San Diego.”

NAHB - “Builder Confidence Improves Slightly in November” (11-16-10)

“Builder confidence in the market for newly built, single-family homes improved slightly in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI rose one notch to 16 from a downwardly revised level of 15 in the previous month.”

Inman - “Realtor.com reclaims No.1 spot” (11-16-10)

“Realtor.com reclaimed the top spot as the most-visited real estate-related website in October, according to the latest report from Web metrics firm Experian Hitwise. The report’s data is based on a sample of 10 million U.S. Internet users.”

CNN - “Foreclosure mess prompts call for stress tests” (11-16-10)

“The Congressional Oversight Panel, created by Congress in 2008 to review the Treasury Department’s response to the financial crisis, issued a 125-page report detailing recent allegations that banks and loan servicers filed thousands of inaccurate documents in foreclosure cases across the country.”

Housing Wire – “ForeclosureRadar: dramatic decline in REO sales in October” (11-16-10)

“While 50 state attorneys general offices and 11 regulators are investigating the matter, Sean O’Toole, CEO of ForeclosureRadar, said the issue will only have a brief effect, and that the real problem will be new scammers cropping up.”

Housing Wire – “FHA 5 years away from 2% reserve ratio” (11-16-10)

“The Federal Housing Administration reported today that its capital reserve ratio will return to the 2% level mandated by Congress in 2015.”

Housing Wire – “Moody’s sees minimal risk to RMBS from robo signing, MERS litigaton” (11-16-10)

“The risks posed to residential mortgage-backed securities by the robo-signing debacle are extremely low to moderate and should have a limited impact, according to Moody’s Investors Service.”

Housing Wire – “One-third of fund managers see stronger economy in 2011″ (11-16-10)

“Investor strategy is slowly returning to a ‘normal level’ of risk-taking as 35% of fund managers now see the global economy strengthening next year. Only 15% reported the same sentiment last month, according to the latest Bank of America Merrill Lynch Survey of Fund Managers.”

Housing Wire – “Reducing mortgage principal? Count MGIC out” (11-16-10)

“The nation’s leading private mortgage insurer, Mortgage Guaranty Insurance Corp., sent an e-mail out late Monday to mortgage default servicing clients clarifying its policies regarding distressed borrowers.”

Housing Wire – “Ginnie Mae to disclose loss mitigation data on single-family pools” (11-16-10)

“Ginnie Mae will begin issuing reports on how many mortgages have gone through the loss-mitigation process for securitization investors.”

Housing Wire – “FHA mortgage insurance beats private market 25-fold: KBW” (11-16-10)

“The Federal Housing Administration wrote $319 billion in new insurance in 2010, more than 25 times the $12.4 billion in new insurance written by the top five private companies over the last year.”

Housing Wire – “Head of Chase mortgage: Foreclosure always last resort” (11-16-10)

“Foreclosure is always the last resort and least desired option for delinquent mortgages, and JPMorgan Chase uses all possible remedies prior to starting any foreclosure process, according to an executive in the bank’s home loan office. And in most cases, no one is even living in the property any longer.”

Bloomberg - “Bailout Panel Warns of Bank Mortgage Losses, Urges Stress Tests” (11-16-10)

“Regulators should conduct new stress tests on banks because legal challenges to foreclosures and uncertainties in the housing market could threaten the financial system, a congressional watchdog said.”

Bloomberg - “FHA Reserves Fall to Lowest on Record as Agency Boosts Capital” (11-16-10)

“The FHA’s capital-reserve ratio, which measures funds needed to cover projected losses, fell to 0.50 percent in the year ended Sept. 30 from 0.53 percent a year earlier, remaining below the federally mandated 2 percent minimum for a second straight year, the agency said today in a report to Congress.”

Looking Back:

One year ago, the Worker, Homeownership and Business Assistance Act was expected to provide approximately 33 billion dollars in tax cuts to real estate corporations. Statistics from Altera Real Estate showed that the most difficult Orange County market to find a new home in was Ladera Ranch. Foreclosure Radar reported that investors bought 337 homes and condos at foreclosure auctions in October.

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 200 podcasts in our free investor radio archive.

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Looking Back:

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

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