Today’s News Synopsis:
The unemployment rate decreased to 7.2% and is now at its lowest level since November 2008. Spending on construction increased in August for the fifth month in a row by 0.6%. The Federal deficit is now at $22B with the recent FHA bailout.
In The News:
Housing Wire- “FHA bailout pushes federal deficit to $22B” (10-22-13)
“With the Federal Housing Administration drawing $1.7 billion from the Treasury into its Mutual Mortgage Insurance fund for the first time in FHA history, the balance of the fund ended up costing the federal government a hefty sum.”
DS News – “Analysts: Rising Rates Contributing to Housing’s Slowdown” (10-22-13)
“While maintaining that tight credit conditions and rapid price gains present the greatest threats to the housing recovery, Capital Economics is ready to acknowledge that rising mortgage rates may provide more drag than the firm’s analysts first thought.”
Bloomberg- “Construction Spending in U.S. Increases for Fifth Straight Month” (10-22-13)
“Construction spending in the U.S. rose in August for a fifth consecutive month, propelled by the strongest outlays on homebuilding in five years.”
Housing Wire – “LPS earnings plummet as default servicing landscape shifts” (10-22-13)
“Lender Processing Services (LPS), known for providing data, analytics and services to the mortgage industry, felt the sting of a 40% drop in earnings-per-share in the third quarter as the company adjusted to a decline in overall transactions within the origination and default services segments.”
CNN Money – “Unemployment falls but hiring slows” (10-22-13)
“The unemployment rate fell to its lowest level since November 2008, but the government’s latest jobs report still shows a muddled picture of the economy. ”
DS News- “Report: New Rules Not Expected to Interfere with Fair Lending” (10-22-13)
“Five federal agencies issued Tuesday a statement assuring creditors that they do not run the risk of being found in violation of fair lending laws should they choose to only originate “qualified mortgages” (QM) as defined earlier in the year.”
Mortgage Professional America – “Shutdown could have lingering effect on home sales” (10-22-13)
“Existing home sales have backed off since hitting near-four year highs in August, and the recent government shutdown could hamper sales even further”
Realty Trac – “Fed Options Hobbled By Tough Jobs Market & Falling Income” (10-22-13)
“Home prices during the past year have risen significantly but can prices continue to increase? More and more the answer has a lot to do with employment levels and income as opposed to bricks and mortar.”
Norco, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $370,000 on a 4 bedroom, 3 bathroom home appraised for $535,000.
Bruce Norris of The Norris Group will be holding their Distressed Property Bootcamp Tuesday-Thursday, October 22-24, 2013.
Bruce Norris will be speaking at the Financial Tactics Brunch on Thursday, October 26, 2013.
Bruce Norris will be speaking at the Anaheim REI Expo on Sunday, November 3, 2013.
September saw in an increase in mortgage delinquencies according to a report from the Lender Processing Services. The rate, originally at 7.4%, was at 7.72%. The number of bank failures was at 46 with the closure of three more banks in Tennessee, Minnesota, Arkansas. In order to help JP Morgan with their mortgage margins and to keep taxpayers safe, Fannie Mae and Ginnie Mae limited the number of loans they are purchasing from firms.
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.