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The Norris Group Real Estate News Roundup 7/8/10

Thursday, July 8th, 2010

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 7/7/10

Wednesday, July 7th, 2010

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 6/16/10

Wednesday, June 16th, 2010

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 6/15/10

Tuesday, June 15th, 2010

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 6/11/10

Friday, June 11th, 2010

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 5/15/10

Monday, May 17th, 2010

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 5/12/10

Wednesday, May 12th, 2010

Today’s News Synopsis:

The NAHB reports that builder confidence increased from Q1 2009, but is still low. The MBA’s weekly survey shows that mortgage application volume increased by 3.4 percent. According to Freddie Mac, of all borrowers who had 30-year FRMs, 75% refinanced into a new 30-year FRM. Barclays estimates that foreclosure shadow inventory should peak during the summer of 2010.

In The News:

NAHB - “Active Adult Home Builder Activity, Confidence Remain Low” (5-12-10)

“The 55+ single-family HMI measures builder sentiments based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market.  A number greater than 50 indicates that more builders view conditions as good than poor. Although the index recorded a slight rise in the first quarter of 2010 – moving up two points to 19 from its 2009 Q1 level of 17 – the level of confidence remains low.”

Mortgage Bankers Association – “Refinance Applications Surge, Purchase Applications Drop in Latest MBA Weekly Survey” (5-12-10)

“The Refinance Index increased 14.8 percent from the previous week and the seasonally adjusted Purchase Index decreased 9.5 percent from one week earlier.  The unadjusted Purchase Index decreased 8.9 percent compared with the previous week and was 0.6 percent lower than the same week one year ago. The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 7, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 3.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 3.4 percent compared with the previous week.”

Inman - “More U.S. residents on the move” (5-12-10)

“The percentage of U.S. residents who moved between 2008 and 2009 jumped to 12.5 percent (37.1 million people), according to a report by the U.S. Census Bureau. That increase comes after a record-low move rate between 2007 and 2008: 11.9 percent, or 35.2 million people. The bureau’s data comes from the 2009 Current Population Survey conducted between February and April every year at about 100,000 U.S. addresses. It includes residents who are at least 1 year old.”

Housing Wire – “Freddie Mortgage Refinancing Dominated by Fixed-Rate Products” (5-12-10)

“Of borrowers who had 30-year FRMs, 75% refinanced into a new 30-year FRM, while 15% opted for a 15-year FRM and the remaining 10% chose a 20-year FRM. Freddie said the combined 25% of 30-year borrowers that refinanced into a shorter-term loan is the most since Q304, when 30% of 30-year borrowers refinanced into a balloon mortgage or shorter-term FRM.”

Housing Wire – “Shadow Inventory To Peak in Summer of 2010: Barclays” (5-12-10)

“The shadow inventory of foreclosures should peak in the summer of 2010 before falling gradually in the later months, according to a new report from Barclays Capital. Barclays defines the shadow inventory of foreclosures as loans in 90-plus day delinquency or already in the foreclosure process. According to the report, there are currently 2.4m loans in 90-plus day delinquency and another 2.1m in foreclosure, totaling 4.5m in the shadow inventory.”

Housing Wire – “End in Sight for General Growth Bankruptcy” (5-12-10)

“The end is in sight, as a plan is in place for General Growth Properties (GGP: 14.96 +0.20%) to emerge from bankruptcy as early as this summer. The judge overseeing the case approved bidding procedures and the issuance of warrants to a group of investors led by Brookfield Asset Management (BAM: 25.49 +1.03%).”

Bloomberg - “‘Perfect Quarter’ at Four U.S. Banks Shows Fed-Fueled Revival” (5-12-10)

“Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc., the first, second and fifth-biggest U.S. banks by assets, all said in regulatory filings that they had zero days of trading losses in the first quarter. Citigroup Inc., the third-largest, doesn’t break out its daily trading revenue by quarter. It recorded a profit on each trading day, two people with knowledge of the results said.”

Bloomberg - “Morgan Stanley’s Gorman Denies Bank Misled CDO Buyers” (5-12-10)

“Morgan Stanley Chief Executive Officer James Gorman denied allegations the U.S. bank misled investors about mortgage derivatives it sold them. The firm is being probed by U.S. prosecutors over whether the bank misled clients when it sold them collateralized debt obligations as its own traders bet that the value of the securities would drop, the Wall Street Journal reported today. The New York-based firm hasn’t been contacted by the Justice Department, Gorman told reporters in Tokyo today.”

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

Wednesday, May 5th, 2010

Today’s News Synopsis:

The MBA reports mortgage loan application volume increased by 4 percent from last week. Treasury Department secretary Timothy Geithner is supporting a tax on the liabilities of banks. Laurie Goodman, an analyst at Amherst Securities Group LP, claims that second mortgages are threatening the housing market.

In The News:

Mortgage Bankers Association – “Purchase Applications Continue to Increase, Refinance Activity Declines in Latest MBA Weekly Survey” (5-5-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 30, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 4.0 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 5.1 percent compared with the previous week.”

Associated Press – “Pulte pares 1Q loss and now expects profit in 2010″ (5-5-10)

“PulteGroup Inc., the nation’s largest homebuilder, said Wednesday it slashed its loss in the first quarter and forecast it would be profitable this year. That would mark a major turning point for the builder, which has posted a loss now for 14 consecutive quarters as the worst housing downturn in decades unfolded.”

Housing Wire - “As Geithner Pushes Bank Tax, Outsourcers Look to Ease the Pressure” (5-5-10)

“In a speech today in front of the Senate Finance Committee, Treasury Department secretary Timothy Geithner renewed the push for the Financial Crisis Responsibility Fee, a tax on the liabilities of banks, proposed by the administration in January. The announcement comes at a time when bank wealth managers are becoming increasingly pressured by regulatory reform, according to a poll conducted by SEI, a third-party portfolio servicer.”

Housing Wire – “Senate Begins Considering Financial Reform Legislation” (5-5-10)

“The US Senate today resumes consideration of S 3217, the Restoring American Financial Stability Act. Senators could begin voting on the bill’s 55 amendments this week. At the same time, a separate bill that looks to regulate the over-the-counter (OTC) derivatives market could potentially be wrapped into the larger financial reform legislation, with one credit rating agency concerned that certain additions to potential amendment, if passed, may sap the market of players.”

Bloomberg - “Mortgage Bond Spreads at Widest in Five Months: Credit Markets” (5-5-10)

“Yields on Fannie Mae and Freddie Mac mortgage securities that guide U.S. home-loan rates climbed to the highest in five months relative to Treasuries as Europe’s worsening government finances lead investors to shun all but the safest assets.”

Bloomberg - “U.S. Lets Second Loans Threaten Housing, Goodman Says” (5-5-10)

“The U.S. government and the nation’s largest banks are still allowing second mortgages to jeopardize the housing market, according to Laurie Goodman, an analyst at Amherst Securities Group LP.”

Inman - “5 must-knows about hiring a home stager” (5-5-10)

“There’s no clear-cut career path to becoming a stager. Most, but not all, stagers have had some kind of professional training specific to staging.”

Inman - “Top 10 residential lenders: Quicken Loans, BB&T join the list” (5-5-10)

“Retail lenders Quicken Loans Inc. and BB&T Corp. elbowed their way onto a list of Top 10 residential lenders maintained by MortgageDaily.com for the first quarter, bumping MetLife Inc. and Flagstar Bank.”

Looking Back:

The median price of a home in March 2009 was $253,000. Bernanke predicted that the recession would end in the second half of 2009. Economists predicted that the Orange County and Los Angeles regions would lose 300,000 jobs in 2009.

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The Norris Group Real Estate News Roundup 4/30/10

Friday, April 30th, 2010

Today’s News Synopsis:

MetLife is expecting a comeback in the commercial real estate market. According to LPS, More than 7.3m mortgages in the US are non-current or in REO status this month. Orange County apartment rent rates fell 5 percent during the first quarter of 2010. President Obama nominated Janet Yellen, Peter Diamond and Sarah Bloom Raskin for the Federal Reserve Board of Governors to the US Senate.

In The News:

Bloomberg - “D.R. Horton Gains After Quarterly Profit Tops Analyst Estimates” (4-30-10)

“D.R. Horton Inc., the second-largest U.S. homebuilder by revenue, climbed the most in three months after reporting its second straight quarterly profit on increased demand for houses. Net income was $11.4 million, or 4 cents a share, for the quarter ended March 31, compared with a loss of $108.6 million, or 34 cents, a year earlier, the Fort Worth, Texas-based company said today in a statement. The results beat the average of 11 estimates in a Bloomberg survey that showed analysts predicted the company would roughly break even.”

Bloomberg - “MetLife Expects Commercial Real Estate to Rebound” (4-30-10)

“MetLife Inc., the largest U.S. life insurer, said there are signs of a recovery in the commercial real estate market after property values dropped about 40 percent from their peak. The company gained the most in seven weeks in New York trading.”

Housing Wire – “Obama Nominates Three to Federal Reserve Board of Governors” (4-30-10)

“President Barack Obama on Thursday sent three nominations for the Federal Reserve Board of Governors to the US Senate. His nominees include Janet Yellen, president of the Federal Reserve Bank of San Francisco; Peter Diamond, an institute professor at the Massachusetts Institute of Technology (MIT); and Sarah Bloom Raskin, commissioner of financial regulation for the State of Maryland.”

Housing Wire – “Geithner Threatens Crack-Down on HAMP Servicers” (4-30-10)

“‘I want to be clear that we do not believe servicers are doing enough to help homeowners, not doing enough to help them navigate the difficult and often frightening process of avoiding foreclosure,’ he said in prepared remarks.”

Housing Wire - “Non-Current Mortgages, REO Reach 7.3m in March: LPS” (4-30-10)

“More than 7.3m mortgages in the US are non-current or in REO status through March 2010, according to the Lender Processing Services (LPS) (LPS: 38.065 -0.41%) Mortgage Monitor report. Data and analytics firm LPS reported the modest improvements in the amount of loans becoming current has been overshadowed by this large pool of non-current assets, which represent more than 12% of all active loans in the country. The volume of distressed mortgages is up 19.3% from a year ago.”

Orange County Register – “O.C. apartment rent down 5%” (4-30-10)

“The average rent for a unit in a large Orange County apartment complex fell 4.8 percent during the first quarter of the year, down to $1,475 a month, according to RealFacts. However, the average asking rent pulled out of its nose dive, rising $2 a month from the previous quarter. Rents had fallen steadily for the previous 15 months.”

Orange County Register – “County seeks fee for property tax appeals” (4-30-10)

“An Orange County administrator wants to impose a $30 per parcel fee on property tax appeals this summer to help offset the costs of administering the hearings and to discourage fraudulent and frivolous actions. The proposal was made by Darlene Bloom, clerk of the Board of Supervisors, whose office administers appeals of property tax assessments.”

Realty Times – “Seniors Looking to Downsize, Seek Opportunities to Socialize in Urban Living Areas” (4-30-10)

“there’s a changing mindset emerging. ‘Senior citizens no longer want to be in an isolated place.’ Many are selling their homes and looking for a community connection in the location where they plan to purchase their next home. ‘Like the rest of America, there was this movement going out toward suburbia. Now, there’s a movement going back toward more urban areas and towns are starting to be challenged,’ says Matthews.”

Looking Back:

One year ago, foreclosure filings increased dramatically during March. The U.S. Senate rejected legislation letting U.S. bankruptcy judges cut mortgage terms to help borrowers avoid foreclosure. The average rate of a 30-year mortgage dropped to 4.78 percent.

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The Norris Group Real Estate News Roundup 4/16/10

Saturday, April 17th, 2010

Today’s News Synopsis:

California unemployment increased to 12.6 percent last month. The SEC charged Goldman Sachs with fraud. According to the Commerce Department, Housing starts climbed to an annual rate of 626,000 last month. Fannie Mae is developing a new program to help families in foreclosure gain access to a new mortgage within 2 years.

In The News:

Sacramento Bee – “Jobs rebound, but California unemployment at 12.6 percent” (4-16-10)

“California’s unemployment inched up to 12.6 percent last month even though the state added 4,200 jobs, the federal government reported today. The numbers from the Employment Development Department are further evidence of the economy beginning to stir.”

Los Angeles Times – “Housing starts, permits rise as builders rebound” (4-16-10)

“Housing starts climbed to an annual rate of 626,000 last month, up 1.6 percent from February’s revised 616,000 pace, which was higher than initially estimated, Commerce Department figures showed Friday. Building permits, a sign of future construction, climbed to the highest level since October 2008.”

Wall Street Journal – “Mortgage Rates Reverse Course and Fall” (4-16-10)

“The 30-year fixed-rate mortgage averaged 5.07% for the week ended April 15, down from 5.21% last week. A year ago, the mortgage averaged 4.82%. The 15-year fixed-rate mortgage averaged 4.40%, down from 4.52% last week and 4.48% a year ago.”

Housing Wire – “Fannie Mae Director Outlines Program to Turn Homeowners into Renters” (4-16-10)

“Miguel Gutierrez said the goal of Fannie Mae is to minimize family displacement for borrowers that participate in a deed-in-lieu of foreclosure program, launched early in November 2009, while managing it in a way so as to not put any undue pressure on Fannie’s ever-growing rental portfolio. The homeowner-turned-renter is required to pay fair market rent to stay in their home for up to 12 months. The renter must have enough income to sustain a 31% income-to-rent ratio and rental payments are not subsidized by Fannie Mae, but could include renters eligible for Section 8 payments.”

Housing Wire – “Fannie Shortens Wait for Some Distressed Borrowers to Get New Loans” (4-16-10)

“Fannie Mae (FNM: 1.24 -4.62%) announced it is reducing the wait time for some borrowers between when they complete a short sale or deed-in-lieu of foreclosure transaction and when they can obtain a new mortgage. Previously, a borrower was required to wait four years before getting a new mortgage, or two years if their home sold in a short sale. Under the new guidelines, a borrower that previously completed a deed-in-lieu of foreclosure transaction can get a new mortgage in two years, provided the borrower has a 20% down payment.”

Housing Wire – “SEC Charges Goldman Sachs with Fraud Over Subprime RMBS CDO” (4-16-10)

“The Securities and Exchange Commission (SEC) today charged Goldman Sachs (GS: 160.70 -12.79%) and one of its vice presidents for allegedly defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages, demanding a jury trial for the allegations to be heard.”

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