California Real Estate Headline Roundup

Posts Tagged ‘Case-Shiller index’

By Bruce Norris .

FHFA Director Mel Watt Not Getting Involved in Mortgage Reform Debate

Wednesday, May 14th, 2014

 

Today’s News Synopsis:

FHFA director Mel Watt announced he will not be getting involved in the mortgage reform debate nor be increasing the limits on loans.  Rather, he will be leaving this work to Congress.  In addition, Democrat Gary Peters from Michigan said he does not see reform happening for Fannie and Freddie any time this year.  The latest Case-Shiller Index from CoreLogic showed home prices increased 11.3% in the fourth quarter last year.

In The News:

DS News“FHFA Adopts New Plan Under Director Watt; Won’t Reduce GSE Market Share” (5-14-14)

“In a speaking engagement at the Brookings Institution, Federal Housing Finance Agency (FHFA) Director Melvin L. Watt spoke about his new 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac, highlighting a few major changes to the plan.”

Housing Wire“Home prices grew 11.3% in 4Q2013″ (5-14-14)

“The latest CoreLogic (CLGX)-Case-Shiller index shows that home prices increased by 11.3% in the fourth quarter of 2013 compared to the same time a year ago.”

Mortgage Professional America - “Watt: FHFA won’t raise loan limits, enter GSE reform debate” (5-14-14)

“The director of the Federal Housing Finance Agency says the FHFA won’t be raising loan limits – or entering the debate on mortgage reform.”

Inman - “NAR flexes lobbying muscle at midyear conference in Washington, DC” (5-14-14)

“The National Association of Realtors flexed its lobbying muscle to members at its annual midyear conference in the District Tuesday night, calling attention to its aggressive fundraising and social media advocacy efforts this year.”

Bloomberg - “Bond Yields Nip on Heels of Dividends to Pressure Rally in REITs” (5-14-14)

“Some wise person, probably a Realtor, once said that real estate is always a good investment because they’re not making any more of it. Another wise person, probably not a Realtor, once said to ignore that original wise person when the property market crashed a few years ago.”

Housing Wire - “NAFCU members see regulatory costs spiking” (5-14-14)

“A survey of members of the National Association of Federal Credit Unions finds that while most say credit union lending has improved, new regulations and proposals including the QM rule and the National Credit Union Administration’s risk- based capital proposal threaten to increase costs and stall the lending activity growth.”

Mortgage Bankers Association - “Refinance Applications Increase in Latest MBA Weekly Survey” (5-14-14)

“Mortgage applications increased 3.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 9, 2014.”

Mortgage Professional America - “GSE reform unlikely to become law this year — congressman” (5-14-14)

“A House Democrat is predicting that legislation winding down Fannie Mae and Freddie Mac won’t become law this year.”

Hard Money Loan Closed

San Bernardino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $78,000 on a 2 bedroom, 1 bathroom home appraised for $120,000.

San Bernardino Hard Money Loan closed by the Norris Group

 

Bruce Norris of The Norris Group will be speaking with LAREIA presenting Taking it to the Next Level in Arcadia TONIGHT.

Bruce Norris of The Norris Group will be presenting the Real Estate Market Update with AOA in Long Beach on Thursday, May 15, 2014.

Bruce Norris of The Norris Group will be presenting the Real Estate Market Update with TIGAR in Corona on Thursday, May 22, 2014.

 

Looking Back:

New home sales began to increase once again as foreclosure and short sale inventory began to decline.  The NAHB reported housing affordability was at its highest on record in the first quarter at 73.7%.  TransUnion reported the national mortgage delinquency rate was 4.56%, which was much higher due to longer cures and foreclosure timelines.

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.

Consumers Granted Easier Access to Loans with New FHA and GSE Plan

Tuesday, May 13th, 2014

 

Today’s News Synopsis:

The FHA and GSEs are coming up with a new way for consumers to have easier access to mortgage credit and to Fannie and Freddie loans.  Housing affordability increased in the first quarter with 65.5% of new and existing homes being affordable compared to 64.7% in the fourth quarter last year.  Home prices increased 11.3% in the fourth quarter last year according to the latest Case-Shiller Index.

In The News:

DS News“Case-Shiller Index: Home Prices Increase in Q4 2013″ (5-13-14)

“With 2014 nearing its halfway point, a broad spectrum look at more than 380 markets nationwide confirms home prices jumped 11.3 percent in 2013’s final quarter compared to the year prior.”

Housing Wire“FHFA, GSEs launch program to “stabilize” communities hit hardest by foreclosures” (5-13-14)

“Federal Housing Finance Agency Director Mel Watt addressed the future of the agency he leads and the future of Fannie Mae and Freddie Mac in his first public address on Tuesday.”

Mortgage Professional America - “JPMorgan may slash 10,000 more jobs than expected” (5-13-14)

“JPMorgan may be cutting as many as 10,000 more jobs this year than previously announced.”

Inman - “FHA, Fannie and Freddie regulator making moves to ease mortgage credit” (5-13-14)

“A shift by the federal regulator of Fannie Mae and Freddie Mac could soon make getting a mortgage loan easier by giving lenders more wiggle room before the mortgage giants demand that they repurchase loans.”

DS News - “First Quarter Housing Affordability Edges Higher” (5-13-14)

“A decrease in median home prices coupled with steady mortgage rates helped contribute to higher housing affordability in the first quarter of 2014, according to the National Association of Home Builders (NAHB).”

Housing Wire - “CFPB execs, union rep subpoenaed by House Committee” (5-13-14)

“The House Financial Services Committee has subpoenaed two Consumer Financial Protection Bureau officials and a union representative to appear before the Subcommittee on Oversight and Investigations as part of an ongoing investigation into allegations of discrimination and retalition at the CFPB.”

Inman - “Florida developer’s new homes promise easy commute to Disney World” (5-13-14)

“An experienced developer has targeted an up-and-coming area of Florida that has improving transport links for a new project and expects strong demand from buyers.”

DS News - “FHA Program Aims to Expand Credit; Lower Risk” (5-13-14)

“The Federal Housing Administration (FHA) issued its “Blueprint for Access,” which aims to expand credit access for underserved borrowers by utilizing housing counseling as a means to reduce the possibility of loans becoming seriously delinquent.”

Hard Money Loan Closed

Stanton, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $235,000 on a 3 bedroom, 1 bathroom home appraised for $363,000.

Stanton Hard Money Loan closed by the Norris Group

 

Bruce Norris of The Norris Group will be speaking with SDCIA presenting Taking it to the Next Level in San Diego TONIGHT.

Bruce Norris of The Norris Group will be presenting the Real Estate Market Update with AOA in Long Beach on Thursday, May 15, 2014.

Bruce Norris of The Norris Group will be presenting the Real Estate Market Update with TIGAR in Corona on Thursday, May 22, 2014.

 

Looking Back:

The total number of closed banks was at 12 with the recent closure of two banks in North Carolina and Georgia.  Freddie Mac announced on this day their modification program for delinquent borrowers was ready and making streamlined loan mods available much more quickly.  Home prices continued to increase up into the double-digit numbers as more consumers tried to purchase homes in a market with less inventory.

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

The Norris Group Real Estate News Roundup 6/25/13

Tuesday, June 25th, 2013


Today’s News Synopsis:

Home prices increased in April by 12.1% year-over-year, exceeding expectations.  The national delinquency rate stood at 6.08% in May, the lowest since May 2008.  At the same time, foreclosure inventory also decreased to 3.05%, the lowest since March 2009.  A new bill was drafted to replace Fannie Mae and Freddie Mac with the single Federal Mortgage Insurance Corp and to help improve the secondary mortgage market.

In The News:

Bloomberg - “Consumers to Factories Point to Durable U.S. Expansion: Economy” (6-25-13)

“Consumers and companies are starting to act as if the U.S. economic expansion is here to stay.  Purchases of new homes jumped in May to a five-year high, while business investment plans improved for a third straight month, figures from the Commerce Department showed today in Washington.”

Housing Wire“Senators launch bill to boost secondary mortgage market” (6-25-13)

“A bipartisan group of senators took a stand against the existing government-sponsored enterprises this week.  Their strategy—drafting a bill to replace Fannie Mae and Freddie Mac with a single government guarantor, known as the Federal Mortgage Insurance Corp.”

DS News - “FHFA’s Home Price Index Records Annual Gain of 7.4%” (6-25-13)

“The Federal Housing Finance Agency (FHFA) reported a 0.7 percent increase in its House Price Index (HPI) from March to April.”

Inman - “California Realtors warning sellers about pocket listings” (6-25-13)

“The California Association of Realtors has published a “Q-and-A” on pocket listings for Realtors to distribute to their clients and the news media titled ‘The Pros and Cons of Off-MLS Listings: What Consumers and Real Estate Agents Should Know’.”

CNN Money - “Recent college grads face 36% ‘mal-employment’ rate” (6-25-13)

“More than a third of recent college grads with jobs are working in positions that don’t require a degree.  Economists call that figure the “mal-employment” rate, and right now it tops 36% for college-educated workers under the age of 25, according to figures crunched by Andrew Sum, director of the Center for Labor Market Studies at Northeastern University.”

Housing Wire“Census Bureau: New home sales continue to take off” (6-25-13)

“New home sales continue to climb, rising to 476,000 completed transactions in May, according to government data.  When evaluating single-family homes specifically, sales inched up 2.1% in May, above the revised April rate of 466,000 units.”

Bloomberg“U.S. Housing Prices Increased More Than Forecast in April” (6-25-13)

“Home prices climbed more than forecast in the 12 months through April, rising by the most in more than seven years and showing further strength in the U.S. housing market.”

DS News - “Delinquency, Foreclosure Rates Decrease to Post-Crisis Lows in May” (6-25-13)

“The national delinquency rate and foreclosure inventory rate each fell to post-crisis lows in May, Lender Processing Services (LPS) reported Tuesday.”

Mortgage Professional America - “CFPB accused of violating Dodd-Frank” (6-25-13)

“A business group has accused the CFPB of violating the Dodd-Frank Act in its information requests.”

Hard Money Loan Closed

Los Angeles, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $162,000 on a 3 bedroom, 2 bathroom home appraised for $250,000.

 

Bruce Norris of The Norris Group will be speaking at California Comeback 2: Fast, Furious, and Dangerous in Ontario on Saturday, July 13, 2013.

Bruce Norris of The Norris Group will be holding their Distressed Property Bootcamp Tuesday-Thursday, July 16-18, 2013.

Bruce Norris of The Norris Group will be speaking at SJREI Poised to Pop Thursday, September 5, 2013.

Looking Back:

In a big news story, new home sales were at 369,000 the previous month, the highest they had been in two years as prices continued to increase.  Prices for commercial real estate property decreased in April in almost every sector.  Pending home sales also decreased 5.5% in April according to the National Association of Realtors.  HousingPulse claimed the increase in home prices may have been related to the decrease in inventory.

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.

Aaron and Bruce Norris of The Norris Group on the Real Estate Radio Show #334

Friday, June 14th, 2013

Aaron Norris

Aaron Norris,
Marketing Director of The Norris Group

(Full Bio)

Bruce Norris

Bruce Norris,
Realtor, Investor, Hard Money Lender, Educator

(Full Bio)

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In a reversal this week, Bruce Norris is the special guest again this week. He is interviewed by Aaron Norris, his son and Vice President of the Norris Group. Bruce is the president and founder of the Norris Group and has been a real estate investor since 1980. During this time he has been involved in over 2,000 transactions. As an investor, builder, and/or hard money partner he is best known for his long-term market timing reports including The California Comeback 1997 and The California Crash 2006.

In the last session Bruce and Aaron talked a lot about California Comeback 2 as well as what they are currently working on. Aaron said they are still two weeks away from it even going to print, so Aaron wondered if Bruce was still doing research. Bruce said he is since he saw the stock market was down 200 points on the backs of poor employment and the Fed decisions. During the week there was some unhappiness about the Fed possibly stepping in and doing less buying of the mortgages. At the same time we do not have any new employment, and that is the conundrum for them. They are going to make a national decision to not have a double-dip recession by continuing the low interest trends. California will say this is fantastic.

Aaron wondered who some of the naysayers are who are still expecting a poor comeback for real estate. Bruce said Shiller from the Case-Shiller Index expects a flat market for ten years, which is not uncommon. He owns two houses, but he does not own them with any expectation of them going up. Bruce never feels arrogant about the conclusions and feels like there are much more intelligent people than him who have disagreed with him and been incorrect. You do not celebrate this, but rather you ask what you are seeing that they are not. He thinks the only thing it really comes down to and is important when you start talking about transactions. Bruce looks at a chart, and it is alive to him. He remembers 1995, 1989, what he did, and paying for what he did. This is part of the moodometer. He can look at this and feel the mood of getting it wrong.

Bruce remembers when he first talked with Michael Carney about prices doubling. He mentioned how if they look at a foreclosure chart, Bruce will see something in it that he does not. It is okay because he is collecting the data but is not in the industry. If we have refinement and better conclusions, it is probably because we also have a history of what we have said coming out true. If it is not true and you are a researcher, then you go back and not pretend it was wrong but instead see if yours and another’s thought process was incorrect and change it. This is what you have to be honest and do. When prices did not end when people thought they would, they got some heat for this. There was a whole year of $500-$600 they did not think would happen, but then they did not even know what a collateralized debt obligation was. They had no idea people were financing things, and it turned out they did not even know what a debt obligation was either. You can then go back and at least see why something occurred.

There are some things you can point to and say you are not going to change your thesis because something was nonsense. This is one of the things they have had to do in the conclusion chapter. He is forced to not go to the peak price we have reached. To extrapolate the future, he has to go backwards. We cannot go to the peak price since that was nonsense. The question asked was if they could go down to 11% affordability, to which the response was they could if they play with it. They are probably not going to play with it, so we have to go back to a historical number and play with where our price goes from there. Literally, the ending chapter of his new book will have what they have done before but only in California, and now they are breaking it down per area where the stopping payment will be. This is something they have never done.

They have come up with the affordability number, but he thinks this time it will end on a payment ratio. You could say in Riverside County it will be one particular payment; so if it was one price in ’89 and produced a certain payment at the end, then this time we will extrapolate it all in payments to where you can feel comfortable making a decision. Bruce has not even looked at this yet, so it may be that the payment ends earlier in coastal areas. We did see a progression of money going from the coast, so maybe this is what we will do as investors. We may get the gains out of high-dollar areas and keep moving it. Rosamond did not even pencil until 2004, so it makes sense to him. He has not seen this statistically, but he thinks this is where it may go. When you are maxed out in one area, your historical payment looks like it is over. However, it may not be over somewhere else. Lancaster and Palmdale still has a price per month that is around 1990’s price per month.

Aaron said they have not gotten any debate invitations yet, but if there was a debate it would be a lot more fun than the debates in 2005 and 2006. He remembers being in the audience and being so upset about how Bruce was treated on stage. People were flat out snarky. Bruce said the fun part about it was there was somebody in the audience who is now an investor of the Norris Group. When he came in, he said something to the effect of being worth $75 million when he heard Bruce and is now worth $25 million. This felt good for Bruce because that audience of builders was not in the mood to hear this. When you make decisions based on how you feel, you are always going to be late. When you are booming in 2005 and 2006 and are a builder, the problem with being a builder is you really have lead time for your product.

If you think 2005 and 2006 are happy, you have to think that 2009 is going to be the same. Whatever you are buying today is not going to produce a house until then. This is a flaw and the same flaw they have now. They are not creating sub-divisions because they do not feel happy right now, so they are not going to start something that is going to come out of the ground until 2016. Bruce said he would not take this risk. Maybe they are smarter than he thinks and are not going to take the risk. He cannot imagine them not creating building lots, but when he saw the first quarter of 2013 he really thought it would be different. He thought it would be a year’s worth of 2012 and that the numbers would be 25, not 4. He thought we would get a pace of at least 100 this year, not 350. He thought the people are really skeptical. This is really the only way you can describe it since they have not signed up and do not have a backlog of new homes or available lots.

The way homes are handled is different than it was during the boom. They take your order first and a down payment before they even start building. You order first and then they build. They are not building a whole lot of models hoping to sell. Bruce said one of his family members just went shopping for a home, and someone in sales said four months ago there was still no excitement. Now, things are crazy and they are raising house prices every four houses. Just one company is raising the price every four sales. Somewhere down the road, one of the people who attended the Saturday seminar was a sales person and a material buyer for the company. He said what is happening now is the land cost is escalating. When they start figuring out their lot costs, they are now going back to their suppliers and trying to buy everything cheaper in order to make up for the difference. This will be an interesting problem since usually when building gets busier, the price of everything goes up instead of down.

Aaron has seen articles saying they are having a hard time finding labor too. We have not had to build anything for a while, and the labor migrates out or does not come at all. What is interesting about the California comeback is you are going to end up with migration from here. One of the chapters revisits everything we ever did with UHaul. They compare it with the years when there was a downturn and at the end of the boom, and they price out the UHaul going both directions to see where we are at now. When California does have a construction boom, we get migration from foreign people and other states.

Aaron said one of the chapters he liked in the presentation All in or Fold was the chapter about people migrating. It said if they do not come back soon enough, they might plan enough routes to where they never come back. What if this boom is not long enough to cement people in California where they have a good experience to where they want to plant routes and are gone again? The new report is covering 24 months about which he feels very positive. He does not see how it would end negatively inside of the 24 months, but he wants to set the guidelines for the numbers that tell you where it ends. He really hopes it does not come to this because he is tired of this happening in real estate. When he speaks in front of clubs and he has positive projections, Aaron gets so many comments from people about how Bruce seems so happy. He tells them it is because he likes what he is talking about to them. When you are talking about two days of the California Crash, it is hard to keep talking about it.

Aaron and Bruce discuss the hard money loan program, the 8-year program they came out with in 2009. At this time people thought they were crazy, and some of the research reports Bruce does plays into that. Aaron asked Bruce why he chose 8 years, to which Bruce said he thought it would be more than enough for them to have an exit. He did not expect someone to have to refi, he just wanted to give them plenty of time to sell at the peak. Aaron said he has not seen any hard money lenders who have been able to recreate the 8-year term. Craig Hill trusts the performance of the borrowers, and they pay on time. Bruce went back to present to Fannie Mae, and he had the green ball of all currents and they were blown away. His portfolio is at 9.9%, and everyone is current.

They were loaning to investors, not speculators, which is a big difference. The people who bought it in 2009 and 2010 and locked in the earliest bottom prices are going to be so happy. You also have to think about the trust deed investor who has a 9% yield going for 8 years. They probably started at 60% of value, and now they are probably at 40%. It has gotten even more boring, and your chance of taking a loss on this is ridiculously non-existent. Now we are starting to do building programs, which has just started ramping up and they have gotten a lot of interest in the last three months. These are people who have bought lots below what it cost to put into it.

You also have the lending world who is not in the mood to do that loan. The private money world can react, and more appropriately and quickly to what the market is telling us. This is a side benefit of figuring things out in the future in that we can look at the loan business and say we need to adjust to a different product type. Bruce said the reason they do not have competitors is that you normally do not get to ask private party money people to take on an 8-year loan. This is completely the trust that has been in place. As a trust deed investor, Bruce has a lot of the 8-year loans. He does not have to get paid off every 6 months. It is the most boring part of his portfolio of things that he has that creates cash flow. No one calls him; there is no fix-it. He got a $500 bill a couple days ago on a rental, but he never gets one on a trust deed.

Aaron said Bruce does not really have to deal with tenants and toilets. Even though he grew up with Bruce in real estate, he really did not pay attention until he started working for the Norris Group. It has been interesting to see the progression of the customer life cycles. Sometimes you have been helping people start way back in the late 1990s, and as they progress they move into the trust deeds. It has been really interesting to watch this the last couple years.

Aaron talked to Craig Hill of the Norris Group, and Craig said that about 40% of the loans come from private sellers, 40% from short sales, and the remaining is a mix of probate REO and new build. It will be really interesting to see how this progresses in just the next twelve months. One of the chapters they are going to have in the new report includes data given by Sean O’Toole. The chapter will look at the equity position and how it has changed from a year ago. Short sales will continue as long as there are people upside-down. When you have price aggression like we are going to have, it is not going to be long. Some of the rules we have such as tax law changes and not taxing debt forgiveness are national policies that will probably not be necessary in California after 2013. Even if they pulled the plug in California, it would not be a big deal.

One of the main questions Aaron and Diana Barlet take a lot is if you had to start completely over with no money, where would you start in this market? Bruce said he would start with Subject 2, go to Craigslist, run an ad, and talk to people who wanted to walk away. He would then take over their position, get an option to buy some dirt, find someone he can flip to, and aggressively pursue responses from signs and mailers. This was literally how he started. He did not have any money to buy properties, he found. This is one of the important messages that people do not always understand. This is why Bruce uses the phrase “the simplest cotta.” Sometimes we spend an entire class doing the simplest cotta that you learned four years ago. You wonder why they are doing this, and then you see your sensei do it and see that it is a lot different than what you learned earlier.

The whole idea is that you are going to have expertise after a certain amount of years, but Bruce bought a lot of properties with no expertise and did not really want it bad enough to embarrass himself. There are two sides to this. You cannot wait until you are an expert, but you can bust your fannie (no pun intended) and get a lot of results. During the first three months of his buying career when he accumulated three years of money so fast, it really taught him that you really do not have to know very much. You have to bring what you have and be willing to try really hard. This is one of these markets where you are rewarded for trying something. You really get bailed out of mistakes you might make on appraisals and repairs. This year is 2004 and 2005 revisited in that there is a very strong upside.

At the beginning of June Bruce taught his seminar How to Make a Million Dollars in 24 Month, and Aaron said he really likes it when Bruce talks about bringing currently know and have into the business. In this market especially, Aaron likes watching Mike Cantu, Tony Alvarez, Bill Tan, and Bruce give advice on all their different areas of expertise while all showing their own unique personalities. One of the great things about the business of real estate is you can really come from anywhere and make it happen. We all can get out hustle by somebody who wants it bad enough. Bruce has had those conversations where you would have an agent you have dealt with before and have not heard from in a while. You call them and say you have not done anything for a while, and they tell you they got a call from someone else. It was like some hustler stepped in, and it makes you suspicious. You thought it was on automatic pilot, but it was not.

For this year’s I Survived Real Estate, Aaron has already heard back from Fannie Mae who told him that Doug Duncan cannot come as of now. However, he is on the radar and wants to be part of the panel if something changes. For people who do not know about the event, it is October 18th. At this event, they bring in thought leaders from all over the real estate industry to talk about regulation, legislation, solutions, and trends. It has been really fun over the years, and it is such a different conversation since you are getting things from different sectors. This year so far, we have gotten a few panelists returning for the first time in a couple years. This includes Debra Still, who was there in 2011 and is currently the chair of the Mortgage Bankers Association.

From their experience, having people coming out and testifying in front of Congress and really being in it that year makes it fun to have them come out again since they are a lot more candid. Leslie Appleton-Young, the Chief Economist for the California Association of Realtors, is also returning. Also on the panel is Christopher Thornberg, who is always a favorite. Round out the panel are Sean O’Toole, with Property Radar (formerly ForeclosureRadar) and John Burns from John Burns Real Estate Consulting. John Burns now has experience with both builders and hedge funds and does consulting. Bruce knows that John has been very positive about the market, and it would be very interesting to see what his take is on how far behind builders are. He just cannot look at the subdivisions and know what all they need. He is probably having trouble with people listening to him.

Aaron asked Bruce what he will most likely talk about at I Survived Real Estate. Bruce said that because it is near the end of the year, you still have Dodd-Frank that needs to get finalized. This is why he thinks what Debra Still has to say will be very interesting. Sean, with his knowledge of foreclosures, can really see if there are any trends and if there is shadow inventory. Christopher Thornberg will be there, and he is very knowledgeable on the economy and disagrees with some of the policies we have in place, including Prop 13. This year the money will go towards Make a Wish and St. Jude again. Last year $70 grand was raised, so we will see if we can up that a little this year. Aaron said this is one of his favorite events of the year, and usually about 450 people attend. They broadcast it live, and the Norris Group is currently working on the event as we speak.

Their plate is full this summer, although Bruce said he did not know we would be starting the year writing California Comeback 2. It became obvious to him when he saw what was happening in the market that he should be writing it. Next year they may have to change the title of I Survived Real Estate, but it has been such a treat for them to do over the years.

Sometimes Aaron gets asked about family. Bruce has never pushed any of his children into real estate, and he has been very hands off unless it was something about which they were passionate. However, he never pushed it onto them. Bruce said oddly enough, both his sons Aaron and Greg brought expertise to the company that he did not have. An opportunity opened up for Aaron, although it did not seem like it was very enjoyable at times. At first Bruce thought maybe it wasn’t for Aaron, but he had no idea that he knew what he knew and was learning a lot on the job. All of a sudden, their documents went from ho-hum to “Oh my goodness!” This was a lot of fun, and Greg is like Aaron in the sense where they both work hard all the time and learn on their own. Bruce has enjoyed every moment, but he did not push it on them because he did not see any reason to and wanted them to do their own thing. People are shocked when they hear Aaron moved from being an artist in New York to real estate in California. It is far from the truth to say Bruce has done a lot for his children, but rather they have done a lot for the company and have gotten them to levels they would not be at otherwise.

The industry is also getting to see a document in a way that no one else produces, not even Academia. Aaron actually used The California Crash to get into the MBA program. This was the document he presented at the school. Bruce remembered the first person who opened this document in the seminar was shocked by it. Even Aaron said it was a fun document to present.

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

The Norris Group Real Estate News Roundup 6/5/13

Wednesday, June 5th, 2013


Today’s News Synopsis:

The Mortgage Bankers Association reported mortgage applications decreased 11.5% from last week.  135,000 new jobs were added to the private sector last month according to a recent report by ADP.  Fannie Mae announced today their plan for making the short sale process move faster and more effectively.

In The News:

Mortgage Bankers Association - “Mortgage Applications Decrease as Rates Jump in Latest MBA Weekly Survey” (6-5-13)

“Mortgage applications decreased 11.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 31, 2013.”

DS News“Fannie Mae Announces New Effort to Streamline Short Sale Process” (6-5-13)

“In an effort to speed up the short sale process, Fannie Mae is increasing early communication with real estate agents by asking listing agents to register accepted short sale offers with the GSE.”

Realty Times - “Home Prices Hit Five Year High While Mortgage Rates Continue to be Volatile” (6-5-13)

“Home prices have hit a five year high while mortgage rates continue to be volatile at a time of year when home buying normally increases. According to the S&P/Case-Shiller index of property values, home prices increased 10.9% for the 12 month period March 2012 through March 2013.”

CNN Money - “ADP: Private sector job growth still weak” (6-5-13)

“Private sector employers added 135,000 jobs in May, according to a report by payroll-processing firm ADP.”

Bloomberg - “Fannie Shares Seen as Worthless Surging in Disconnect” (6-5-13)

“Fannie Mae and Freddie Mac shares surged to five-year highs last week, giving them a combined market value of $48 billion, about the same as BlackRock Inc., the world’s largest money manager, and Starbucks Corp., the biggest coffee-shop operator.”

Housing Wire - “Massachusetts foreclosures decline 79% as local laws stall the process” (6-5-13)

“Massachusetts foreclosure petitions fell a dramatic 79% annually in April as more banks found alternative solutions to default or simply slowed down the process to comply with new state rules.”

Realty Trac“FHA Could Lose $115 Billion” (6-5-13)

“A previously undisclosed stress test has revealed the Federal Housing Administration’s projected losses on defaulted loans could reach as high as $115 billion over 30 years, according to the Wall Street Journal.”

DS News“Survey: Views on Homeownership from Largest Ethnic Groups” (6-5-13)

“When it comes to homeownership, the three largest ethnic groups in the nation share similar visions and attitudes, according to a survey from Better Homes and Gardens Real Estate.”

Hard Money Loan Closed

Santa Monica, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $480,000 on a 2 bedroom, 3 bathroom home appraised for $745,000.

 

Bruce Norris of The Norris Group will be presenting his Free Pre-Event Webinar for California Comeback 2: Fast, Furious & Dangerous with Chino Valley on Friday, June 7, 2013.

Bruce Norris of The Norris Group will be speaking at the Cutting Edge Financial Tactics Brunch in Costa Mesa on Saturday, June 8, 2013.

Bruce Norris of The Norris Group will be speaking at the NSDREI 9th Anniversary Dinner Party in Oceanside on Tuesday, June 18, 2013.

Looking Back:

CoreLogic reported home prices increased 1.1% percent in April 2012 and were expected to show an increase in the month of May.  Clear Capital also reported in their May 2012 Home Data Index that home prices increased both yearly and quarterly at 0.4% quarterly and 0.1% yearly. CMBS delinquncy rates increased slightly to 0.23% in the first quarter, although for CRE mortgages the delinquency rates decreased to 0.37%.

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

The Norris Group Real Estate News Roundup 1/24/13

Thursday, January 24th, 2013


Today’s News Synopsis:

Freddie Mac said mortgage rates are increasing with 15-year rates at 2.71%, up from 2.66%, and 30-year at 3.42%, up from 3.38%.  42 of the largest counties showed tremendous signs of growth last month, both in prices and sales.  A new report from Fannie Mae’s Economic & Strategic Research Group has left people wondering if it is now the “new normal” for the economy to be slow and GDP below normal.

In The News:

DS News- “Prices, Sales Improve in Largest Counties in December: DataQuick” (1-24-13)

“Out of the 42 largest counties in the nation, all 42 exhibited price growth on a monthly, yearly, and quarterly basis in December, according to DataQuick’s monthly Property Intelligence Report (PIR).”

Bloomberg“Shiller Says U.S. Housing Market May Drop Further: Tom Keene” (1-24-13)

“A U.S. housing-market revival may prove illusory and the threat of further weakness remains, said Robert Shiller, a professor at Yale University and co-creator of the S&P/Case-Shiller index of property values.”

Housing Wire- “Clayton Holdings launches product to probe MSR sales” (1-24-13)

“Due diligence firm Clayton Holdings announced the launch of a new business segment to help clients assess risks associated with mortgage servicing transactions.”

Los Angeles Times- “Mortgage rates on rise, Freddie Mac says; 30-year fixed at 3.42%” (1-24-13)

“Interest rates on fixed mortgages rose this week, according to Freddie Mac, with lenders offering the 30-year home loan at an average 3.42%, up from 3.38% a week ago.”

CNN Money - “Jobs recovery favors highly educated workers” (1-24-13)

“Workers across America are experiencing completely different versions of thejobs recovery, depending on their education level.  The recovery is favoring the college educated, but leaving behind those with a high school diploma or less.”

Realty Times- “Rental Increases Should Prompt More Home Buying Moves” (1-24-13)

“Rents are still going through the roof, just not as quickly.  Rents were up for the third consecutive year in 2012, when they rose a bit slower than in 2011, but forecasts call for rent increases in 2013 to match 2012′s increases, according to MPF Research.”

DS News“Fannie Mae: Slow Economic Growth May Be the New Norm for Awhile” (1-24-13)

“While some are asking when the economy will return to normal, others are wondering if this prolonged period of below-potential GDP growth is actually the “new normal,” according to a report from Fannie Mae (FNMA/OTC) Economic & Strategic Research Group.”

Housing Wire- “CoreLogic unveils nonagency RMBS surveillance service” (1-24-13)

“CoreLogic ($27.38 -0.43%) unveiled its latest service, CoreLogic Bond Tracker, to provide life-of-bond surveillance as well as aid investors in valuing and assessing the credit risk of mortgage securities.”

Hard Money Loan Closed

Hemet, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $78,000 on a 3 bedroom, 2 bathroom home appraised for $120,000.

 

Bruce Norris of The Norris Group will be presenting his newest talk Poised to Pop: Quadrant Four Has Arrived at the Apartment Owners Association at the Scottish Rite Center on Thursday, January 24, 2013.

The Norris Group will be holding their Distressed Property Boot Camp from January 29-31, 2012.

Bruce Norris of The Norris Group will be speaking at the 2013 Real Estate and Tax Strategies Kick-Off Brunch on Saturday, February 9, 2013.

Looking Back:

MERS won a case in an appeals court allowing them to foreclose on properties and assign a deed of security to to properties that were already undergoing the securitization process.  In a big story in the news, California saw a decrease in foreclosure notices with the improving housing market and changes in loan policies.  With the settlement between the top five banks and the state attorneys about to be completed, more servicers were hoping to join in on the settlement.

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

The Norris Group Real Estate News Roundup 11/28/12

Wednesday, November 28th, 2012

Today’s News Synopsis:

New home sales decreased 03% last month, but for the year they showed tremendous improvement at a 17.2% increase.  Fiserv reported they expect home prices to increase and continue increasing into 2017.  The Mortgage Bankers Association reported mortgage applications decreased 0.9% last week.

In The News:

Bloomberg- “Sales of New U.S. Homes Fell 0.3% in October” (11-28-12)

“Purchases of new U.S. homes unexpectedly declined in October, showing limited progress in the housing market recovery.”

Realty Times- “Housing Recovery Depends On Continuation of Low Mortgage Rates” (11-28-12)

“There are multiple aspects to the housing recovery that are taking place. While each individual sector of the industry is showing improvement, there is one common factor among all of them and that is the entire housing recovery depends on the continuation of low mortgage rates.”

Mortgage Bankers Associations“Mortgage Applications Decrease in Latest MBA Weekly Survey” (11-28-12)

“Mortgage applications decreased 0.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 23, 2012.  This week’s results include an adjustment for the Thanksgiving holiday.”

Inman- “New-home sales up 17.2 percent from a year ago” (11-28-12)

“Sales of new single-family homes dipped 0.3 percent from September to October but were up 17.2 percent from a year ago, the U.S. Census Bureau reported today.”

DS News- “Multifamily Sector Will Remain Tight Despite Slow Decline in Vacancies” (11-28-12)

“The multifamily sector may not see much of a decrease in its vacancy rate over the next year, but the market is still considered to be tight and there’s still room for growth, according to a report from National Association of Realtors (NAR).”

Realty Trac- “On the Road to Homeownership: Dealing With A Shortage of Supply” (11-28-12)

“All the signs are there that say to us “Buy Now!” Historically low interest rates hovering in the mid-3’s for a 30-year fixed rate mortgage, and the high-2’s for a 15-year fixed.”

DS News- “Fiserv Projects Home Price Growth into 2017 “ (11-28-12)

“The latest numbers from the Fiserv Case-Shiller Indexes show that the housing market may finally be on solid footing again.”

Bloomberg- “U.S. Said to Weigh Tightening Rules for Foreign Lenders” (11-28-12)

“U.S. units of foreign lenders including Deutsche Bank AG (DBK) may be required by regulators to comply with tougher capital rules that some banks sought to skirt, three people with knowledge of the discussions said.”

Hard Money Loan Closed

Los Angeles, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $225,000 on a 2 bedroom, 1 bathroom home appraised for $435,000.

 

Bruce Norris of The Norris Group will be at the Investors Workshops at the Doubletree Hotel in Orange today.

Bruce Norris of The Norris Group will be at the NSDREI Holiday Christmas Party at the El Camino Country Club in Riverside on Sunday, December 2, 2012.

Bruce Norris of The Norris Group will be presenting his newest talk Poised to Pop: Quadrant Four Has Arrived at the Scottish Rite Center in San Diego on Tuesday, December 11, 2012.

Looking Back:

In a big news story, the sale of new homes in the U.S. increased 1.3% for the month of October 2011.  The number of problem banks on the FDIC list continued to decrease for the second straight quarter.  According to Housing Wire, the New York Federal Reserve reported a decline in mortgage debt in the third quarter of 2011.

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

The Norris Group Real Estate News Roundup 11/6/12

Tuesday, November 6th, 2012

 

Today’s News Synopsis:

Freddie Mac reported a profitable third quarter and therefore will not be requesting more aid from the Treasury.  CoreLogic reported home prices increased 0.3% month-over-month in September to their highest since 2006.  In addition, HOPE NOW reported modifications and short sales were completed at a quicker pace in the third quarter.

In The News:

Bloomberg- “Housing-Market Recovery in U.S. Not ‘Resounding,’ Shiller Says” (11-6-12)

“The U.S. housing recovery is a fragile one and should be spurred by reducing the role of government in the mortgage-finance system, said Robert Shiller, a professor at Yale University and co-creator of the S&P/Case- Shiller index of property values.”

DS News- “Servicers Increase Mods and Short Sales in Q3: HOPE NOW “ (11-6-12)

“In the third quarter of this year, servicers increased the pace at which they completed proprietary modifications and short sales, HOPE NOW data revealed Monday.”

Housing Wire- “Nationstar 3Q earnings jump on mortgage servicing growth” (11-6-12)

“Nationstar Mortgage Holdings ($30.20 0%) experienced a 52% jump in its third-quarter profit from last year as the mortgage servicer pulled in additional mortgage servicing rights, expanding its portfolio. The company adds it plans to continue expanding.”

Bloomberg- “Freddie Mac Won’t Seek Treasury Aid After Third-Quarter Profit” (11-6-12)

“The Federal Housing Administration, faced with continuing losses from the housing bubble, will issue a financial analysis next week setting the stage for what could be its first draw from the U.S. Treasury in its 78-year history, according to three people briefed on the report.”

Realty Times- “California Real Estate Recovery Fund Protects Fraud Victims” (11-6-12)

“Many California consumers do not know that their state, like a number of others, has a Real Estate Recovery Fund.”

Inman- “Regulators teaming up to build national mortgage database” (11-6-12)

“Two federal agencies are teaming up to create a national mortgage database they say will help them track emerging mortgage and housing market trends and support policymaking and research.”

DS News- “CoreLogic: September Sees Biggest Yearly Price Gain Since 2006″ (11-6-12)

“Home prices in September posted their biggest yearly gain in more than 6 years, but prices also displayed a typical seasonal slowdown and fell month-over-month, according to the Home Price Index (HPI) report from CoreLogic.”

Bloomberg- “Wells Fargo Boosts Cost of Interest Lost to Mortgage Settlement” (11-6-12)

“Wells Fargo & Co. (WFC), the home lender that agreed to refinance mortgages after a probe of the industry’s practices, may forgo as much as $2 billion in interest, $300 million more than previously estimated.”

Housing Wire- “Freddie Mac REO operations smaller, profitable” (11-6-12)

“Freddie Mac earned $49 million from REO operations in Q312, compared to $221 million in expenses a year prior, according to their latest earnings report.”

DS News- “CMBS Delinquency Rate Makes Biggest 2012 Drop” (11-6-12)

“The delinquency rate on U.S. commercial real estate loans saw its biggest drop in more than a year in October, according to Trepp, LLC.”

Hard Money Loan Closed

San Bernardino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $125,000 on a 4 bedroom, 2.5bathroom home appraised for $215,000.

 

Bruce Norris of The Norris Group will be at the OCRE Forum at the Chinese Cultural Center in Riverside on Wednesday, November 7, 2012.

Bruce Norris of The Norris Group will be at the Investors Workshops at the Doubletree Hotel in Orange on Wednesday, November 28, 2012.

Bruce Norris of The Norris Group will be at the NSDREI Holiday Christmas Party at the El Camino Country Club in Riverside on Sunday, December 2, 2012.

 

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

The Norris Group Real Estate News Roundup 6/26/12

Tuesday, June 26th, 2012

Today’s News Synopsis:

The rate at which homes prices decreased in April was the slowest in a year, a good sign for the economy.  Consumer confidence decreased again for the fourth month in a row to 62. from 64.4.  Banks are no longer allowed to rely solely on credit ratings agencies as a way to determine whether or not their security holds an “investment grade” status according a rule just passed by the Office of the Comptroller of the Currency.


In The News:

Housing Wire“Banks take on ‘investment grade’ duties under final OCC rule” (6-26-12)

“The Office of the Comptroller of the Currency finalized a rule prohibiting banks from relying on credit ratings agencies to determine whether a security is ‘investment grade’.”

Bloomberg“Home Prices in U.S. Cities Fall at Slowest Pace Since ’10″ (6-26-12)

“Residential real estate prices fell in April at the slowest pace in more than a year, adding to signs the U.S. housing market was firming.”

DS News“Bay State Home Sales Continue to Rise as Prices Drop” (6-26-12)

“Bay-state home sales were up almost 35 percent in May making it the highest level of transactions since June 2010, according to The Warren Group.”

CNN Money“Consumer confidence falls for 4th straight month” (6-26-12)

“Consumer confidence fell for the fourth consecutive month, hitting the lowest levels since January, according to a survey that measures Americans’ optimism regarding the state of the economy released Tuesday.”

San Francisco Chronicle“Homebuilders lead stocks up on Wall Street” (6-26-12)

“Homebuilders led stocks up on Tuesday, helping major indexes recoup some losses from the day before. Rupert Murdoch’s News Corp. surged after the media conglomerate said it may split into two companies.”

DS News“Mortgage Loan Fraud Reports Decrease 31% Yearly: FinCEN “ (6-26-12)

“For the first quarter of 2012, the number of Mortgage Loan Fraud (MLF) Suspicious Activity Reports (SARs) submitted decreased 31 percent to 17,651 over a one-year period, according to a Financial Crimes Enforcement Network (FinCEN) report.”

Housing Wire“Mortgage bankers ask Congress to pass HUD funding bill” (6-26-12)

“The Mortgage Bankers Association asked Congress to pass a Department of Housing and Urban Development spending bill and avoid a stalemate that could undermine a still fragile housing recovery.”

DS News“SEC Settlement Against Former Bear Stearns Managers Approved” (6-26-12)

“A civil litigation case brought on by the Securities and Exchange Commission (SEC) against two former portfolio managers with Bear Stearns was settled and received approval from the U.S. District Court for the Eastern District of New York.”

Realty Trac“Is Real Estate “Affordability” An Illusion?” (6-26-12)

“With mortgage rates at their lowest levels in decades and home values down almost 18 percent from 2007 there shouldn’t be much of a debate regarding real estate affordability.”

Hard Money Loan Closed

Rialto, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $130,000 on a 6 bedroom, 3 bathroom home appraised for $239,000.

 

Bruce Norris of The Norris Group will be at the AREAA 2012 Home Buyer & Real Estate Investment Fair Saturday, July 21, 2012.

Bruce Norris of The Norris Group will be at the InvestClub for Women Tuesday, September 18, 2012.

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

The Norris Group Real Estate News Roundup 12/05/11

Monday, December 5th, 2011

Today’s News Synopsis:

According to the FHA and the latest Case-Shiller Index, home prices decreased for the third quarter.  In other news, Housing Wire reported a downgrade in JPMorgan Chase commercial mortgage securities by Fitch Ratings.  Recent data released by the Labor Department shows unemployment benefits in the last four years have cost $434 billion.

In The News:

Housing Wire - “Fitch downgrades JPMorgan Chase commercial mortgage securities” (12-5-11)

“Eight classes of JPMorgan Chase Commercial Mortgage Securities Corp. (JPM: 33.51 +3.65%) securities certificates were downgraded by Fitch Ratings.”

Bloomberg - “FHA Unlikely to Follow Fannie Mae Offering Refinancing Aid, Barclays Says” (12-5-11)

“The Federal Housing Administration is unlikely to change its stance of forcing homeowners with older mortgages to pay larger insurance premiums in refinancings as Fannie Mae (FNMA) and Freddie Mac loosen their rules to help borrowers lower their payments, according to Barclays Capital.”

Realty Times - “Real Estate Outlook: Home Prices Fall” (12-5-11)

“Home prices were on the downswing in the third quarter, according to the latest report from both the Case-Shiller Index and the Federal Housing Finance Agency.”

CNN Money - “Cost of federal unemployment benefits so far: $434 billion” (12-5-11)

“Jobless Americans have collected $434 billion in unemployment benefits over the past four years.  Taxpayers have footed $184.7 billion of the tab incurred during the federal government’s unparalleled response to the Great Recession, according to Labor Department data. State and federal taxes on employers cover the rest.”

DS News - “Foreclosure Crisis Isn’t Even Halfway Over: Study” (12-5-11)

“The foreclosure crisis has had a long and destructive run – five years and counting, and more than 3 million families have lost their homes. According to the Center for Responsible Lending (CRL), we’re not even halfway through the devastation.”

Housing Wire“November bank failures tied to CRE exposure, more closures to come” (12-5-11)

“The five banks that failed in November were victims of exposure to commercial real estate, analytics firm Trepp LLC said Monday.”

Mortgage Bankers Association - “MBA Announces Completion of MISMO Transition” (12-5-11)

“The Mortgage Bankers Association (MBA) today announced it has completed the transition, announced in September, and will resume support for the Mortgage Industry Standards Maintenance Organization, Inc. (MISMO®). With the successful transition, MISMO will now focus efforts on regulatory implementation and advocating for broader adoption of data standards throughout the industry.”

San Francisco Chronicle - “Services in U.S. Expand at Slowest Pace Since 2010: Economy” (12-5-11)

“Service industries in the U.S. expanded in November at the slowest pace since  January 2010 as employment cooled, a sign improvement in the biggest part of the  economy will be uneven.”

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.