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222-TNG Radio – Lance Martin 4-23-11

Thursday, April 21st, 2011

Lance-Martin

Lance Martin

Owner of Coldwell Banker Pioneer Real Estate


(Full Bio)

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This week Bruce is joined by Lance Martin. Lance has been in the real estate business for 24 years as broker/owner of Coldwell Banker Pioneer Real Estate which serves the Inland Empire. Lance is an expert in residential REO foreclosure sales.

Martin’s business is family owned. In the late 80s, Lance’s family moved from Long Beach to Moreno Valley. Martin and his father opened their business together in 1988. They dealt primarily with single family homes, but they also worked with REOs. Property management was the staple of their business for a long time. His parents retired 10 years ago, but he continued operating the business. The business is independently owned and operated, but it is franchised through Coldwell Banker.

Martin got his real estate license when he was 19, and 1987 was his first year in the business. In those years, real estate sold easily. The market progressively deteriorated after that time. He was fortunate to be connected with REO clients such as Fannie Mae in 1993. To this day, he has leveraged Fannie and Freddie for business. Martin did nothing other than REO until the year 2000.

Property management kept Martin’s business performing when real estate sales were not doing well. Mot traditional real estate companies shy away from property management, because it is a lot of work, and landlords and tenants are difficult.

When Martin looks for an agent, he tries to find someone who is disciplined. Martin has interviewed agents who had great sales skills, but they did not have the discipline to come to work frequently enough. He has also met people who did not have great skills, but they were hard working and they followed up with their clients.

Martin believes a lot of information that has been released from the CAR and NAR has been false. Nevertheless, he has been a big supporter of the local board of realtors. He served as president of that organization in the 90s. There is a lot of education available in that organization. Also, it helps you get recognized. Banks and clients like to know that they are working with someone involved in the industry. He had the opportunity to learn about the politics and legislation involved in the real estate business.

For the last 10 years, Martin has been attending 4 to 6 conferences per year. Over the last two years, he has gone to these conferences to learn how to support his business. Unfortunately, the conferences he has attended during the past two years have been nearly useless. There is not much new content being released. It is hard for economists to explain the current state of the real estate market and where it is going. In Martin’s opinion, we do not have a true real estate market. He believes we have an artificial market created by a large amount of government intervention, and he is not comfortable with it. Martin has been trying to figure out what the government and the banks trying to do to control inventory and the market as a whole. Nobody seems to have the answer to those questions, and because of that, the value of the conferences Martin attends has diminished. He may stop going altogether.

When this happens, you start losing the credibility of the people you need to keep. Bruce was on a panel at one of the conferences Martin attended. After some time, he noticed that the panelist was not asking questions that the audience needed answers to. Bruce then took over the question asking, and he even asked the panelist questions that the audience wanted answers to. At the end of the conference, Bruce was asked to leave from three security guards. Martin supported Bruce’s decision to take control of the questioning that day.

Martin considers Bruce to be worth listening to, and that was one of the big reasons he chose to attend the REOMAC conference which Bruce was taken out of. Martin also has a high level of respect for Chris Thornberg.

Bruce believes anyone will have an audience if they are willing to present the unvarnished picture. You should not have a business plan with phony information.

Some of the forecasts made by NAR over the last few years have been embarrassing. If Martin had relied on NAR’s forecasts, he would be out of business. Bruce feels frustrated for people who have lost credibility because they chose not to support NAR’s information.

In the 90s, people thought the downturn was a once in a lifetime opportunity. The inventory level was easy to predict based on notices of default and notices of sale. Since 2006, the inventory has been difficult to predict, and it has been huge. The number of REOs we currently have dwarfs the number from the 90s. In this market, if the numbers say that 100 properties should come to the market, then there will probably be less than 10. The reality is that all of those properties will have to come to the market eventually.

One of the chapters Bruce wishes he had not included in his book on the California downturn was “How California Prices Decline in a Downturn”. He methodically looked at all of California’s downturns in the past, and tried to estimate how California’s down turn would function based on that information. Those estimations were completely false.

There were sellers with equity in the 90s. In Martin’s current market area, 90% or more of the properties are distressed, and are in the REO or short sale market.

According to a survey from the NAR, only 33% of the people who have recently sold their home are interested in buying right away. This means only 165,000 buyers would be created if you performed 500,000 sales. Martin thinks consumers understand that we are in an unusually distressed market.

Martin’s website is www.pioneerrealestate.com

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 4/14/11

Thursday, April 14th, 2011

Today’s News Synopsis:

Statistics from MDA DataQuick show 7,051 houses and condos sold in the Bay Area last month. CAR says home sales increased 3.1% in March. According to RealtyTrac, foreclosure filings dropped 27% year over year. A newly proposed bill may require mortgage servicers to respond within 45 days of receiving a short sale request.

In The News:

MDA DataQuick – “Sales up, Prices Down for Bay Area Housing Market” (4-14-11)

“A total of 7,051 new and resale houses and condos sold in the nine-county Bay Area last month. That was up 41.3 percent from 4,991 in February and up 0.2 percent from 7,040 in March 2010, according to San Diego-based DataQuick.”

CAR - “March sales and price report” (4-14-11)

“Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 514,090 units in March, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in March increased 3.1 percent month-over-month and 1.5 percent year-to-year, aligning with C.A.R. sales expectations for 2011.”

Inman - “Feds announce partial settlement with ‘robo signing’ servicers” (4-14-11)

“In a partial settlement addressing so-called ‘robo-signing’ foreclosure practices, the nation’s largest loan servicers have agreed to hire outside consultants to review foreclosures initiated in 2009 and 2010, and to compensate homeowners who should not have been foreclosed on.”

Los Angeles Times – “Mortgage rates continue to edge higher” (4-14-11)

“The average rate for the benchmark mortgage rose for the fourth straight week, according to Freddie Mac, which said in a report Thursday that the lenders it surveyed were offering 30-year loans at 4.91% this week.”

CNN - “Foreclosures off 30% this year” (4-14-11)

“The number of foreclosure notices filed during the first three months of 2011 fell 27% compared with the first quarter of 2010, according to a report from RealtyTrac released Thursday.”

NAHB - “Proposed QRM Harms Creditworthy Borrowers and Housing Recovery” (4-14-11)

“In the midst of a very fragile housing recovery, the government is throwing a devastating, unnecessary and very expensive wrench into the American dream. First time homebuyers will have to choose between higher rates today or a 9-14 year delay while they save up the necessary down payment. And 25 million current homeowners would be locked out of lower refinancing rates because they lack the required 25 percent equity in their homes.”

Housing Wire – “Jobless claims unexpectedly rise to 412,000 last week” (4-14-11)

“For the week ending April 9, Americans filed 412,000 initial jobless claims, which is 27,000 more claims when compared to the previous week’s revised figure of 385,000.”

Housing Wire – “Bill introduced to speed up short sales” (4-14-11)

“A bill was introduced in the House of Representatives this week, requiring mortgage servicers to respond within 45 days of receiving a short sale request.”

Bloomberg - “U.S. Foreclosure Settlement Muddies Outlook for Mortgage Relief From Banks” (4-14-11)

“The 14 largest U.S. mortgage servicers, including JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC), agreed to review all foreclosed loans from 2009 and 2010, and pay back losses in cases that were mishandled. They also will improve procedures by hiring staff, upgrading document-tracking systems and assigning a single point of contact for each borrower. ”

Orange County Register – “Are these home prices too good to be true?” (4-14-11)

“There have been 79 short sales that have closed escrow in Huntington Beach thus far this year. They have sold for an average of 99.9% of their list price. That’s a pretty incredible number. I fully understand the reasoning for aggressively pricing a short sale listing. Agents want to get an offer in front of the bank as soon as possible to get the ball rolling on the short sale. But I think this has to be done within reason.”

Orange County Register – “O.C. hotel room rates jump 6.6%” (4-14-11)

“The lodging experts at Colliers PKF report that Orange County hotels in February saw average room rates at $138.19 per night — that is up 6.6% in a year (or $8.52 a night.) Meanwhile, 67.3% of Orange County hotel rooms were filled vs. 63.9% the year earlier.”

Housing Wire – “Lawmakers to consider reducing QRM down payment to 10%” (4-14-11)

“Lawmakers in the House of Representatives are considering a push to lower the 20% down payment required for exemption of the recently proposed risk-retention rules on securitized mortgages.”

Looking Back:

One year ago, the U.S. Treasury reported more than 1.4 million borrowers had been offered trial modifications under HAMP. The MBA’s weekly survey showed that mortgage application volume decreased by 9.6 percent from the previous week. Banks required over 25 percent more time to foreclose a property in in California from the previous year. According to statistics from the Federal Reserve’s Beige Book, overall economic activity increased in nearly all parts of the country.

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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218-TNG Radio – Leslie Appleton-Young 3-25-11

Friday, March 25th, 2011

Leslie Appleton-Young

Vice President of C.A.R.

(Full Bio)


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This week Bruce is joined again by Leslie Appleton-Young. She is the Vice President and Chief Economist for the California Association of Realtors; a statewide trade organization with over 165,000 members. Leslie directs the activities of the association’s member information groups, she oversees the analysis of housing markets and broker industry trends, member communications and member development activities.  She is well known as a speaker in the California real estate community.

UCLA’s business school has projected that California’s unemployment will remain in the double digits until 2013. This does not surprise Leslie. We are experiencing cyclical job losses, because there are few sectors that have not been impacted. To some extent, our problem is structural. Sending jobs over seas to lower wage countries has been occurring for a long time.

During the downturn of the 90s, there were job losses concentrated in California due to a loss of migration. Leslie does not believe this is our main problem though. Our biggest issues are coming from the restructuring of corporations and businesses. 70% of costs are directly tied to labor, so the easiest way to become more efficient is to use fewer workers.

Leslie is uncertain of the impact that gas prices will have on real estate. Gas affects real estate because it impacts the overall economy. High prices means there will be less discretionary income available for purchasing. The cost of gas also impacts the ability of people to move further out. The UCLA forecast assumed there would be no significant long term reductions in gas supply, and that we would be able to weather the increases, but we do not know that.

Affordability is close to an all time high. The gap between California’s affordability and the U.S.’s affordability is much closer now as well. The California median home price peaked at $594,000, and the U.S. peaked at $230,000, so we were still over twice as expensive. California’s current median is $300,000, and the U.S. median is $170,000, so there is still a big gap between the two.

Bruce believes this all time low for housing affordability is going to give us a boost in migration. The challenge will be to provide job opportunities for the migration.

In a county like Riverside, where it is common to develop 250 to 300 subdivisions every year, there is going to be a huge increase in demand. The inventory that has been bought from lower priced years will be able to increase in value. Bruce notes that Riverside has only developed 10 subdivisions this year.

There has been a significant increase in household size over the last couple years, because families have been moving in with each other to weather the bad economy. Many people who chose to move in with their family will be looking to move once the economy improves, and that will create demand.

In another five years, Leslie believes down payment requirements and interest rates will be significantly higher. Getting rid of Fannie Mae and Freddie Mac will affect us for many years. The private sector will be demanding higher risk premiums to originate.

A number of surveys from Fannie Mae and others show that many people still aspire to own a home. Leslie does not believe this will change. However, financing will become a bigger burden. Leslie does not believe 30 year mortgages will be very popular in the future. Bruce believes that we must be heading towards a lower percentage of home ownership.

In business, when you have an advertising campaign that you know will work, that is called a control piece. The only way you change that control piece is by changing one thing at a time to see if something emerges as better or worse. We had a control piece called a zero down VA loan. This program produced less than 1% foreclosures, and FHA did the same thing for a long time. Unfortunately, we changed everything about how we performed loans within 5 years, and we got a bad result. Bruce does not understand why we won’t go back to the way things were before.

In 2005, the GSE delinquency rate was 7.8%, and the private label delinquency rate was 28.6%. In 2006, GSEs had a delinquency rate of 23.3%, and the private label delinquency rate was 45.1%. For loans originated in 2007, the GSE rate was 14.9%, and the private label rate was 42%. This information must have been overlooked by the people discussing what to do with our financial system in the future. Fannie and Freddie worked until 2005 and 2006 when then decided to get into the subprime and Alt-A market. Bruce is not sure if our sufferings would have been eased much had Fannie and Freddie not gotten involved in subprime lending. If they had not touched subprime, there still would have been a large amount of inventory being overpriced because of the easy financing available at that time. What we did wrong was pretend that it was okay to loan people money based on a stated income and without a down payment.

39% of defaults between 2006 and 2008 were due to home equity borrowing. Leslie does not believe it is healthy for people, as well as the real estate market, to borrow in such a way that they owe more on their home after a year of ownership. Bruce does not totally agree with that, because in the past that behavior was not as simple. Leslie believes it is bad for people to leave themselves no cushion. Bruce agrees with this statement.

In 1934, FHA did 80% LTV loans with 20 year terms. Gradually we went to 30 year terms, and the down payment requirements went to 10, to 5, to even 3%.

Bruce is concerned that if we lower loan limits, it will cause a significant price drop, and then you will have a continuous negative equity position. Bruce and Leslie hopes the government does not restrict the market too much in this manner. Leslie has noticed that the government’s decisions tend to be imbalanced.

When Bruce bought his first home and mowed the grass for the first time, it made him feel like a man. Being an owner changed the way he felt about himself. It is a big deal, and it is one of the big reasons for why people come to California.

Bruce was very frustrated when the president of MERS was questioned in front of the senate, because not one of the senators read his deposition. If you are going to make a huge decision against a very influential company like MERS, why not take an hour to try and understand the problem?

CAR’s website is www.car.org

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 3/21/11

Monday, March 21st, 2011

Today’s News Synopsis:

Existing home sales dropped 9.6%, according to the NAR. A San Joaquin County investor pleaded guilty to rigging foreclosure auctions, and is now facing a federal prison sentence and $1 million in fines. LPS claims the current mortgage delinquency rate is 8.8%.

In The News:

NAR - “February Existing-Home Sales Decline following Sustained Gains” (3-21-11)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 9.6 percent to a seasonally adjusted annual rate of 4.88 million in February from an upwardly revised 5.40 million in January, and are 2.8 percent below the 5.02 million pace in February 2010.”

Housing Wire – “California pending home sales spike in February” (3-21-11)

“The California Association of Realtors’ Pending Home Sales Index rose 20.6% in February to 112.1 from 93 in January. The index uses 2008 housing market activity as a baseline because it represents a more normal level of purchases and sales. An index reading of 100 corresponds with activity in 2008.”

Recordnet.com – “Guilty plea in home auction rigging” (3-21-11)

“A San Joaquin County investor pleaded guilty Friday in federal court to charges he illegally rigged bids with others at home foreclosure auctions in Stockton, the U.S. Attorney’s Office in Sacramento reported. Gregory L. Jackson is the sixth defendant so far to plead guilty in the federal probe. He faces a federal prison sentence and $1 million in fines under terms of the negotiated plea deal.”

Orange County Register – “‘Normal’ new-home market is 3-5 years off” (3-19-21)

“We decided to add Southern California (especially the O.C. market) into our business plan since we believe this market has bottomed. In today’s home building market, there is an imbalance between used and new homes in Orange County as a limited amount of new homes have been built over the last five years.”

Orange County Register – “Demand for O.C. homes at 7-month high” (3-21-11)

“Demand, the number of new pending sales over the past month, increased by 225 in just two weeks and now totals 2,982. At the beginning of the year, demand was at 1,856 pending sales. Since then, it has increased by 61%. Last year at this time there were 288 additional pending sales, propped up by the $8,000 first time homebuyer tax credit.”

Housing Wire – “Mortgage delinquency rate drops 18.4% annually: LPS” (3-21-11)

“Out of the 40 million loans evaluated by LPS last month, 8.8% qualified as delinquent (30 days or more overdue). That delinquency rate is down 1.2% from January and 18.4% from February 2010.”

Housing Wire – “Stress tests suggest economy may slide back into crisis: IRA” (3-21-11)

“Recent stress tests conducted by the Federal Reserve suggest the banking industry and economy ‘may be sliding back into crisis’ because of deflation in the housing sector, according to a new report from Institutional Risk Analytics.”

Housing Wire – “Moody’s expects temporary GSE exemption from mortgage risk rules” (3-21-11)

“Analysts at Moody’s Investors Service said Monday regulators may exempt Fannie Mae and Freddie Mac from upcoming mortgage risk retention rules – at least temporarily.”

Housing Wire – “Distressed property sales decline on foreclosure issues facing servicers” (3-21-11)

“Overall, investors stepped up their homebuying game last month even as distressed property sales fell, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The report shows the HousingPulse Distressed Property Index — a barometer of distressed home sales — fell to 47.3% in February from 49.6% in January.”

Bloomberg – “Treasury to Sell Mortgage-Backed Holdings at Up to $10 Billion Per Month” (3-21-11)

“The U.S. Treasury Department plans to wind down its $142 billion portfolio of mortgage bonds guaranteed by Fannie Mae and Freddie Mac by selling as much as $10 billion per 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 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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217-TNG Radio – Leslie Appleton-Young 3-19-11

Friday, March 18th, 2011

Leslie Appleton-Young

Vice President of C.A.R.

(Full Bio)


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This week Bruce is joined by Leslie Appleton-Young. She is the Vice President and Chief Economist for the California Association of Realtors; a statewide trade organization with over 165,000 members. Leslie directs the activities of the association’s member information groups, she oversees the analysis of housing markets and broker industry trends, member communications and member development activities.  She is well known as a speaker in the California real estate community.

Leslie started with CAR in 1984. At that time, California was in the middle of a bad cycle. The biggest difference between our recent downturn and downturns of the past was the change in median home prices. In the early 80s, the median home price flattened when transactions dropped over 60%. In the early 90s, the market contracted 25% and home prices did drop, but the biggest single annual decline was less than 5%. In our recent downturn, the statewide median home price dropped 59% within one year.

In earlier cycles, sellers had equity, so if the market was doing poorly, they would rely on their equity to help them through the bad times. This time around, the flood of non-discretionary sellers overwhelmed the market, and caused the sharp descent in prices.

Surveys from ThinkTank and Fannie Mae show that homeownership is still sought after. The demand for housing from first time buyers and investors is still robust. The idea of owning a home has not been too badly damaged, however, the buyer’s ability to gauge market timing has. People are too worried that prices have not bottomed, so they are waiting until prices stabilize. Leslie also thinks people now realize that buying a home is not going to make them rich quickly.

In 2006, a lot of people were buying homes because they wanted more room, nicer neighborhood, and better school districts. Leslie believes most home buyers are not buying for these reasons any more.

1 in 4 mortgages are underwater today. Leslie believes this will impact the strength of the housing market over the next couple years.

In 2005, net cash to seller was a median of $220,000. Last year it was $35,000. In the distressed sales market, the net cash to seller was around negative $143,000. This means many of those people will not have the necessary cash to buy a home in the near future. A survey showed that only 33% of sellers were planning on re-buying a home in the near future.

When we released 500,000 home sales in 2010, that means we have to manufacture 250,000 buyers that aren’t showing up out of natural causes. Leslie is very glad we have investors to help create buyers for those sales.

Approximately 23% of California home sales are bought for cash. In the luxury markets, those numbers are significantly higher. Bruce read a survey stating that 60% of Beverly Hills homebuyers use all cash in their purchase. Many of the people buying in that area are global home buying clients, and California looks very attractive and affordable to them.

Leslie believes the homebuyer tax credits were the most beneficial of the real estate programs to come from the government. The $8,000 tax credit was very effective at encouraging buyers to enter the market. It also encouraged investors to get their properties ready for potential buyers.

Leslie believes the home market will not receive much federal aid in 2011. Also, the reduction in the $729,000 loan limit will occur this year. She believes the government will go back to a $625,000 loan limit. The government’s efforts to wind-down Fannie and Freddie means financing will be more expensive. However, Fannie and Freddie are not currently expected to be taken away quickly, because the government believes that would negatively impact the economy. Because financing will become more expensive once Fannie and Freddie leave, people will be encouraged to buy sooner rather than later.

Leslie cannot imagine a scenario where interest rates will ever be lower than they are now. Bruce does not think monthly payments for housing will ever be lower. Down payment requirements are going up as well as credit score requirements. This should make people rush to buy.

In January of 2011, there was a 6.7 months supply of homes in the California market. This means that at the pace in which homes were selling during January, it would take over six months to get rid of the entire inventory. The typical average for inventory supply is 6 and 7 months, so that is actually fairly balanced. However, when you break the inventory down by price category, properties priced above 1 million have a 13.8 months supply, $750,000 to $1 million properties have a 9 month supply, $500 to $750 properties have a 7 month supply, $300 to $500 properties have a 6.5 month supply, and under $300,000 is 6.3 months supply. This is a critical piece of information for buyers and sellers.

The most expensive prices have the most discretionary sellers. The more expensive the home, and the more expensive the community, the lower number of distressed sales there will be. Many higher priced sellers also have a lot of equity in their home.

If sellers are discretionary then they are not being forced out of their home. Short sales are considered to be non-discretionary sales. That category is expected to grow considerably. Realtors are hoping lenders will be encouraged to look at short sales in a more positive light. Lenders typically get a higher price for short sales than if the sale goes through foreclosure.

The 6.7 months of inventory does not account for inventory that should be on the market but is not. We have a large number of delinquent properties that should be in foreclosure and entering the market, but are not.

Leslie’s website is www.car.org

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 3/8/11

Tuesday, March 8th, 2011

Today’s News Synopsis:

The California Association of Realtors reports that fewer than 60% of short sales close in California. Approximately 23.1% of all mortgaged homes were underwater in the 4th quarter of 2010, according to CoreLogic. Keefe, Bruyette & Woods does not expect prepayment activity to increase over the next 18 months.

In The News:

CAR - “C.A.R. Short Sale Lender Satisfaction Survey” (3-8-11)

“Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures, according to a Short Sale Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS®”

San Francisco Chronicle – “Underwater mortgages rise as home prices fall” (3-8-11)

“About 11.1 million households, or 23.1 percent of all mortgaged homes, were underwater in the October-December quarter, according to report released Tuesday by housing data firm CoreLogic. That’s up from 22.5 percent, or 10.8 million households, in the July-September quarter.”

Housing Wire – “Moody’s finds MERS fire at little risk of spreading” (3-8-11)

“MERS is reportedly listed as the owner of record and nominee for the lender on more than 50% of outstanding mortgage in the U.S.”

Housing Wire – “BofA doubles default servicing staff, opening centers across the nation” (3-8-11)

“Bank of America (BAC: 14.69 +4.70%) doubled its staff to assist financially distressed homeowners, opened two regional customer assistance centers and plans to open four more.”

Housing Wire – “KBW: Prepayment speeds unlikely to rise over next 12-18 months” (3-8-11)

“Prepayment activity is unlikely to increase over the next year to 18 months, as long as mortgage rates hover around 5%, according to one financial services investment bank. Keefe, Bruyette & Woods said while mortgage rates remain low, they have increased meaningfully since the middle of November while refinance activity dropped sharply during this period.”

Orange County Register – “O.C. judge: Banks rush to foreclose, make errors” (3-8-11)

“An Orange County Superior Court judge who initiated a ‘foreclosure relief’ program that appears to be unique to California courts says that many banks have not been mediating in good faith with troubled borrowers to work out solutions and instead have rushed to repossess homes.”

Looking Back:

One year ago, multifamily home building was expected to become more expensive in San Diego, as a new water meter program gained popularity. One in every 25 Los Angeles homes received a notice of foreclosure in 2009. Silicon Valley Bank forecasted an increase in foreclosures in Napa Valley.

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 2/15/11

Tuesday, February 15th, 2011

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 2/10/11

Thursday, February 10th, 2011

Today’s News Synopsis:

Existing home sales increased 15.4% in the 4th quarter of 2010, according to the NAR.  Housing affordability for first-time buyers increased to 69% during the final quarter of 2010, said the CAR. RealtyTrac reports foreclosure filings fell 17% year over year. Kevin Warch resigned from the Federal Reserve Board of Governors.

In The News:

NAR - “Home Price Stabilization Seen in Most Metro Areas during Fourth Quarter, Sales Up” (2-10-11)

“Total state existing-home sales, including single-family and condo, jumped 15.4 percent to a seasonally adjusted annual rate1 of 4.80 million in the fourth quarter from 4.16 million in the third quarter, but were 19.5 percent below a surge to an unsustainable cyclical peak of 5.97 million in the fourth quarter of 2009, which was driven by the initial deadline for the first-time buyer tax credit.”

CAR - “Q4 First-time Buyer Housing Affordability” (2-10-11)

“The percentage of first-time buyers who could afford to purchase an entry-level home in California rose to 69 percent in the fourth quarter of 2010, matching the record-high set in the first quarter of 2009, according to C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI). In the third quarter of 2010, the Index was 66 percent, and was 64 percent in the fourth quarter of 2009, C.A.R. reported.”

Los Angeles Times – “Obama to outline options for future of Fannie Mae and Freddie Mac” (2-10-11)

“The Obama administration plans to give Congress three blueprints for reducing or eliminating the government’s role in guaranteeing mortgages and providing funding for home loans.”

Housing Wire – “Report: FHA should lower loan limits” (2-10-11)

“The Federal Housing Administration substantially raised its risk when it agreed to insure loans valued as high as $729,000 during the financial crisis, says a new report from the George Washington University Center for Real Estate and Urban Analysis.”

Housing Wire – “CalHFA implements $2 billion ‘Keep Your Home California’ initiative” (2-10-11)

“California residents who are unemployed or owe more on their mortgages than what their homes are worth now have four new state programs that will help them stay in their house and current on their mortgage.”

Housing Wire – “Kevin Warsh resigns from Federal Reserve Board of Governors” (2-10-11)

“Kevin Warsh, one of the Federal Reserve Board of Governors that steered the nation through the recession, resigned Thursday after five years of service.”

Bloomberg - “U.S. Foreclosure Filings Decline for Fourth Consecutive Month” (2-10-11)

“Foreclosure filings in the U.S. fell 17 percent in January from a year earlier, the fourth straight month of declines, as legal scrutiny of lender practices slowed actions against delinquent homeowners, RealtyTrac Inc. said.”

Looking Back:

One year ago, the MBA reported that mortgage application volume decreased by 1.2 percent within a week. According to the NAHB, there were approximately 234,000 homes for sale at the end of 2009. Statistics from Zillow showed that the national median price was $186,200 in Q409 of 2009. The total number of FHA-insured single-family mortgages in default reached 531,671 in Q409 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 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 1/21/11

Friday, January 21st, 2011

 

Today’s News Synopsis:

The CAR reports existing home sales increased 5.9% in December. Freddie Mac is eliminating is streamlined refinance program for mortgages settled after May 1, 2011, and FHA announced it will suspend its anti-flipping rule through the end of this year.

In The News:

CAR - “December price and sales report” (1-21-11)

“Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,680 in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. December’s sales were up 5.9 percent from November’s revised pace of 491,590 but were down 6.8 percent from the revised 558,840 sales pace recorded in December 2009.”

Housing Wire – “Freddie Mac eliminates streamlined mortgage refinance program” (1-20-11)

“Freddie Mac will cut its streamlined refinance program for mortgages settled on or after May 1, 2011. This, say analysts at Bank of America (BAC: 14.265 -1.89%) Merrill Lynch was the only government-sponsored enterprise streamline refinance option left after the Home Affordable Refinance Program expired in March 2009 for Fannie Mae and May 2009 for Freddie.”

Housing Wire – “FHA suspends anti-flipping rule for another year” (1-21-11)

“The Federal Housing Administration will suspend its anti-flipping rule for a second year in 2011, a spokesman confirmed to HousingWire Friday.”

Housing Wire – “Delinquent residential mortgages on the decline: LPS” (1-21-11)

“Lender Processing Services (LPS: 32.21 -0.92%) said the delinquency rate for December on residential mortgage loans that are 30 or more days past due but not in foreclosure stands at 8.83%, a year-over-year decline of nearly 18%. Compared to November, the delinquency rate is down 2.1%, LPS said.”

Housing Wire – “Fitch: 30% of CMBS mortgages maturing in 2011 do not pass refi test” (1-21-11)

“Of the $22.5 billion in commercial mortgage-backed securities loans set to mature in 2011, roughly 30% do not pass the Fitch Ratings refinance test, the credit rating agency said Friday.”

Looking Back:

One year ago, MDA DataQuick reported that 7,828 new and resale houses and condos were sold in the Bay Area during December. Seriously delinquent loans of 60 or more days increased to 6.2 percent of the servicing portfolio. Radar Logic’s study of 25 metropolitan markets showed that home sales increased by 46.7%. Freddie Mac’s weekly survey showed that mortgage rates on 30-year U.S. loans fall to 4.99%.

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 11/23/10

Tuesday, November 23rd, 2010

Today’s News Synopsis:

The CBIA reports housing production decreased 28% in October. National existing home sales declined 2.2%, and California home sales declined 3.5%, according to data from the NAR and CAR. Zillow claims interest rates fell again after last weeks sudden gain. Statistics from Lender Processing show foreclosures fell 36% in October.

In The News:

CBIA - “California Housing Production Continues Decline in October, CBIA Announces” (11-23-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,108 total housing units in October, down 28 percent from the same month a year ago and down 28 percent from September. Permits for single-family homes totaled 1,364, down 37 percent from October 2009 and down 21 percent from the previous month, while multifamily permits totaled 744, down 3 percent from a year ago and down 39 percent from September.”

NAR - “Existing-Home Sales Decline in October Following Two Monthly Gains” (11-23-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 2.2 percent to a seasonally adjusted annual rate of 4.43 million in October from 4.53 million in September, and are 25.9 percent below the 5.98 million-unit level in October 2009 when sales were surging prior to the initial deadline for the first-time buyer tax credit.”

CAR - “California home sales decline from previous month, year” (11-23-10)

“Statewide home resale activity declined 3.5 percent in October to a seasonally adjusted annualized rate of 450,360, down from September’s revised pace of 466,930, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. The October pace was down 19.6 percent from the revised 560,390 sales pace recorded in October 2009. The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.”

Housing Wire – “Zillow: 30-year mortgages head back down after one-week increase” (11-23-10)

“After a one-week turn around in mortgage rates, the 30-year, fixed-mortgage rate fell again to 4.27%, according to the Zillow Mortgage Marketplace weekly update.”

Housing Wire – “FHFA: 30-year mortgages drop to new low of 4.46% in October” (11-23-10)

“The average interest rate on a 30-year fixed-rate mortgage was 4.46% in October, a drop of 12 basis points from September when the rate was 4.58%, according to the Federal Housing Finance Agency.”

Housing Wire – “Freddie Mac delinquencies increase for first time since February” (11-23-10)

“Freddie Mac’s 90-plus day delinquency rate increased for the first time since February, according to the government sponsored enterprise’s monthly summary. The delinquency rate for single-family residences was 3.82% in October, up from 3.8% in September.”

Housing Wire – “Bank earnings skyrocket in 3Q as FDIC problem list nears 17-year high” (11-23-10)

“Third-quarter earnings at institutions insured by the Federal Deposit Insurance Corp. continue to get stronger even as the number of banks on the regulator’s problem list nears the highest level in 17 years.”

Bloomberg - “U.S. Office Rebound to Be Delayed by `Shadow’ Space, Berkeley’s Rosen Says” (11-23-10)

“Unoccupied ‘shadow inventory’ accounts for 3 percent to 5 percent of total business leases, and that space will be filled before firms sign new rental agreements, Rosen, chairman of Berkeley’s Fisher Center for Real Estate and Urban Economics, said at a conference in San Francisco. Cloud computing and other tech advances let employees work away from offices, further reducing space needs, he said.”

Bloomberg - “Foreclosures of U.S. Homes Fell 36% After Freeze, Lender Processing Says” (11-23-10)

“Banks seized 79,886 homes, down 36 percent from a record 124,051 in September and the lowest number since May 2009, the Jacksonville, Florida-based real estate data company said in a report today. Lender Processing bases its figures on information collected from loan servicers at the time of foreclosure.”

Looking Back:

One year ago, the NAR reported that existing-home sales increased by 10.1 percent in October. Statistics showed that California workers, who earned the national median income, could afford 59.1 percent of the new and existing homes during the 3rd quarter of 2009. Multifamily lenders provided $88 billion in new financing for apartment buildings with 5 or more units during 2008.

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.

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