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California Real Estate Headline Roundup

Posts Tagged ‘CIRB’

The Norris Group Real Estate News Roundup 8/24/10

Tuesday, August 24th, 2010

Today’s News Synopsis:

Existing home sales experienced a dramatic decrease of 27.2 percent in July, according to the NAR. Housing production decreased by 10 percent in June. The CAR reports California home sales decreased 20.8 percent in July. Statistics from the California Employment Development Department show that 7,100 jobs were lost from July 2009.

In The News:

NAR - “July Existing-Home Sales Fall as Expected but Prices Rise” (8-24-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009.”

CBIA - “California Housing Production Increases in July, CBIA Announces” (8-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 4,165 total housing units in July, up 35 percent from the same month a year ago but down 10 percent from June. Permits for single-family homes totaled 1,951, down 9 percent from July 2009 and down 31 percent from the previous month, while multifamily permits totaled 2,214, up 134 percent from a year ago and up 25 percent from May.”

Mortgage Bankers Association – “Wells Fargo Tops U.S. Commercial/Multifamily Servicers in MBA Mid-Year Rankings Report” (8-24-10)

“The Mortgage Bankers Association (MBA) today released its mid-year ranking of commercial and multifamily mortgage servicers as of the end of June 30, 2010. Topping the list of firms is Wells Fargo with $462.8 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $307.9 billion, Berkadia Commercial Mortgage with $202.6 billion, Bank of America Merrill Lynch with $133.4 billion and KeyBank Real Estate Capital with $124.7 billion.”

CAR - “July sales and price report” (8-24-10)

“California home sales decreased 20.8 percent in July compared with the same period a year ago, while the median price of an existing home rose 10.4 percent from July 2009, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Housing Wire – “Disappointing Homes Sales Unlikely to Reverse Course” (8-24-10)

“Predictions that home prices may drop into double digits continue to drag down sales. Bill Gross, managing director of the world’s biggest bond fund, PIMCO remarked that the idea of a rebound anytime soon is ‘ludicrous.’ In a meeting at the US Treasury last week, Gross called for combining the government-sponsored entities into one entity that insures the majority of current and future originations.”

Housing Wire – “60% of Delinquent Mortgages Not in Loss Mitigation” (8-24-10)

“According to a study from the State Foreclosure Prevention Working Group (SFPWG), 60% of borrowers with mortgages delinquent by 60 days or more are not being forwarded to the servicer’s loss mitigation department.”

Bloomberg - “Purchases of Existing Homes in U.S. Probably Slumped in July” (8-24-10)

“Sales of U.S. previously owned homes probably plunged in July to the lowest level since March 2009, evidence the market is restrained by foreclosures and limited job growth, economists said before a report today. Purchases dropped 13.4 percent from June to a 4.65 million annual rate, according to the median of 73 forecasts in a Bloomberg News survey. A decline would be the third in a row.”

Orange County Register – “Corona del Mar is O.C.’s ‘coldest’ market” (8-24-10)

“The pricier the town, the harder it is to sell a home there right now, the latest O.C. home inventory report from Steve Thomas at Altera Real Estate shows. Corona del Mar, for example, was Orange County’s ‘coldest’ market in the past 30 days. In theory, it would take 11 1/2 months to sell all the homes on the market there at the current sales pace, the highest ‘market time’ for any O.C. community in the 30 days ending on Aug. 19. Other ‘cold’ markets likewise tend to be home to some of O.C.’s most expensive housing.”

Orange County Register – “Real estate, building jobs down 5% in July” (8-24-10)

“Indeed, construction suffered the largest year-over-year decline among every employment category, the state Employment Development Department reported. Construction jobs fell by 7,100 positions from July 2009, down nearly 10%. Construction jobs totaled 65,700 in July, state figures show.”

Orange County Register – “Broker: No tsunami of repo’d homes to hit market” (8-24-10)

“This shadow inventory has to be worked through, but is not going to occur as a tsunami of distressed properties to hit the market all at once. Instead, we are going to witness slow increases and drops over the next few years. This slow absorption will not pull down values like it did at the beginning of this downturn and it will keep a lid on any substantial appreciation. Once employment improves, the pathway to an eventual healthy and stable recovery will occur.”

Looking Back:

One year ago, 45,079 new and resale houses and condos were sold statewide in one month. Home sales in the Bay Area hit a 4 year high. The Federal Reserve accepted $2.3 billion in investor requests for financing to purchase legacy commercial mortgage-backed securities.

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

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The Norris Group Real Estate News Roundup 7/26/10

Monday, July 26th, 2010

Today’s News Synopsis:

The Commerce Department new home sales increased 23.6% last month. Statistics from LPS show show 9.39% of all loans were delinquent by more than 30 days. The national vacancy rate on multifamily properties  decreased to 7.8%, according to BarCap. A survey from Campbell Survey suggests that home prices will continue to fall.

In The News:

CNN - “New home sales rebound 24%” (7-26-10)

“New home sales increased 23.6% to a seasonally adjusted annual rate of 330,000 last month, up from an downwardly revised 267,000 in May, the Commerce Department reported Monday. Sales year-over-year fell 16.7%.”

CBIA - “Housing Starts Rise Again in June, CBIA Announces” (7-26-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 4,238 total housing units in June, up 19 percent from the same month a year ago and up 34 percent from May. It was the largest monthly total since December of 2008 when 4,658 total permits had been issued. Permits for single-family homes totaled 2,628, down 9 percent from June 2009 but up 33 percent from the previous month, while multifamily permits totaled 1,610, up 140 percent from a year ago and up 35 percent from May.”

Wall Street Journal – “Mortgage Delinquencies Fall in June, Still Near Record Highs” (7-26-10)

“Some 9.39% of all loans were 30 days or more past due, down from 9.54% in May, according to LPS Applied Analytics, which tracks loan data. An additional 3.69% of mortgages were in some stage of foreclosure, down from 3.72% in May and the record high of 3.81% in March.”

Housing Wire – “Multifamily Rental Demand Catching up to Supply: BarCap” (7-26-10)

“The multifamily net absorption rate, or the amount of space leased after deducting the amount of supply, increased by more than 46,000 units in Q210, the highest increase in 10 years, according to BarCap. The national vacancy rate on multifamily properties also decreased to 7.8% from 8% over the same time”

Housing Wire – “As FHA Mortgage Volume Increases From 2009, Serious Delinquencies Spike” (7-26-10)

“The rate of seriously delinquent mortgages backed by the Federal Housing Administration (FHA) declined slightly from May to June, but the gross number of mortgages that are either 90 or more days past due or in foreclosure increased 35% year-over-year. According to the FHA June single-family operations report, the total volume of mortgage in-force increased more than 24% to 6.4m in June compared to the same month one year ago. The total value of unpaid FHA mortgages was $865.5bn in June, up 30.3% from $663.8bn one year ago and up 3.3% from $837.8bn in May.”

Housing Wire - “The New Math Surrounding HAMP Doesn’t Add Up” (7-26-10)

“There is no other way to say this: we’re being lied to. Willfully. Anyone who managed to read headlines around the U.S. Treasury’s latest HAMP report card last week would likely have thought the program a huge success –- with more than one media outlet trumpeting impossibly miniscule re-default rates among permanent HAMP mods. At HW, we chose not to run with the HAMP redefault numbers except to note that Treasury officials had added them into the latest report card. And this choice was made with purpose: we knew these numbers were fake. Nobody gets a 1.7% redefault rate 6 months after modification –- not even Uncle Sam”

Housing Wire – “Campbell Survey: Housing Prices Drop in June and Will Continue to Fall” (7-26-10)

“A 32% plummet in new home sales in May correlates with a drop in overall homebuyer activity, although updated data out today from the Census Bureau shows a nearly 24% surge in new home sales in June.”

Housing Wire – “Monday Morning Cup of Coffee” (7-26-10)

“The Federal Deposit Insurance Corp. (FDIC) took receivership of seven banks last week with a combined cost to the Deposit Insurance Fund (DIF) of $468.2m. It brings the total closings in 2010 to 103 banks. At this time last year, there were 64 closings. Bank failures in 2009 took until October to pass 100.”

Housing Wire – “MIT-Harvard Study: Foreclosure drops house value by 27%” (7-26-10)

“A foreclosure reduces the value of a house by 27%, on average, and accounts for a much steeper price drop than other forced sales, according to a study by an Massachusetts Institute of Technology (MIT) economist and two Harvard University researchers. In comparison, when a house is sold after the death of an owner, the price drops 5% to 7% on average. When an owner declares bankruptcy, the value sinks 3%, according to the report.”

Bloomberg - “U.S. Small-Business Aid May Create $300 Billion of `Junk’ Loans” (7-26-10)

“The U.S. Senate may vote this week on a bill to funnel $30 billion of capital to community banks, whose business customers typically are small firms. Banks could leverage the sum to make $300 billion in loans that create jobs, according to a Senate summary. That could more than double the commercial and industrial loans at eligible banks as of the first quarter, according to data compiled by KBW Inc.”

Orange County Register – “Owners rush to sell O.C. homes” (7-26-10)

“Orange County housing inventory grew by the largest amount so far this year, adding an additional 418 homes in the past two weeks and now totals 11,235. The market has not breached the 11,000 mark since the beginning of April 2009. Last year at this time the inventory was at 8,895 homes, 2,340 fewer than today. The inventory has not stopped growing at all this year as more and more pent up homeowners have opted to place their homes on the market at unrealistic levels.”

Orange County Register – “O.C. distressed homes up 35%” (7-26-10)

“Last year at this time, there were 2,616 distressed homes on the market, 841 fewer than today. The number of foreclosures within the active listing inventory increased by 35 homes in the past two weeks from 578 to 613 … Short sales, where a homeowner attempts to sell a home for less than the total outstanding loans against a home, requiring lender approval, increased by 115 homes over the past two weeks and now total 2,844.”

Looking Back:

One year ago, the quarterly homeownership rate was 67.3 percent. The average rate on 30-year fixed mortgages was 5.2 percent. The state Senate approved a budget package that was believed to be capable of closing the state’s $26.3 billion deficit.

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The Norris Group Real Estate News Roundup 6/24/10

Thursday, June 24th, 2010

Today’s News Synopsis:

According to the CIRB, building permits were pulled for 3,088 housing units in May. Statistics from Freddie Mac show the 30-year fixed-rate mortgage averaged 4.69% last week. Several large banks, such as JP Morgan, are hiring thousands of mortgage officers in preparation to make more loans. TIGTA estimates the IRS awarded $26.7 million to fraudulent home buyer tax credit claims.

In The News:

CBIA - “California Housing Production Up in May, CBIA Announces” (6-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,088 total housing units in May, up 4 percent from the same month a year ago but down 6 percent from April. Permits for single-family homes totaled 1,902, down 19 percent from May 2009 and down 17 percent from the previous month, while multifamily permits totaled 1,186, up 87 percent from a year ago and up 17 percent from April.”

Market Watch – “Fixed-rate mortgages, 5-year ARMs hit lows: Freddie Mac” (6-24-10)

“The 30-year fixed-rate mortgage averaged 4.69% for the week ending June 24, down from 4.75% last week and 5.42% a year ago. Fifteen-year fixed-rate mortgages averaged 4.13%, down from 4.20% last week and 4.87% a year ago.”

CNN - “Banks: We’re hiring so we can make more home loans” (6-24-10)

“Several banks are gearing up to do a whole lot more mortgage lending in the future. Even though new homes sales were at a historical low in May and the housing market in general is in the doldrums, these banks are hiring hundreds of loan originators, getting ready for what they believe will be a significant pick-up in lending. JPMorgan Chase (JPM, Fortune 500), one of the nation’s largest lenders, is in the midst of hiring 1,200 mortgage officers.”

New York Times – “Fed Leaves Rates, Citing Overseas Threats” (6-24-10)

“The Federal Reserve’s policy-making arm said on Wednesday that it had decided to keep short-term interest rates near zero for ‘an extended period,’ citing challenges to economic growth, including the effect of new financial troubles abroad.”

Housing Wire – “Treasury Watchdog Says 1,295 Prisoners Claimed Homebuyer Tax Credit” (6-24-10)

“The Treasury Inspector General for Tax Administration (TIGTA) released its latest interim audit (download here) on Internal Revenue Service (IRS) efforts to identify and prevent fraudulent homebuyer tax credits. All told, TIGTA’s investigation estimates the IRS paid out $26.7m in erroneous credits, less than 1% of the estimated $13.6bn in homebuyer tax credits claimed. Of the approximately 1.2m individuals who claimed the credit, TIGTA estimates 14,132 — about 1.1% — are erroneous or fraudulent claims.”

Housing Wire – “AIA Economist: Desperate Architects Find Themselves in Heated Bidding Wars” (6-24-10)

“We’ve certainly seen the pendulum swing in the other direction, probably even further back than where it started at over the last five years. Homes have gotten smaller. There is much more emphasis on not over investing or over improving. There’s a greater concern over affordability. What can I sell this for when I want to sell it and not trying to over extend the household in this economic environment.”

Housing Wire – “Regulators Find More than Half of Mortgage Modifications in Trouble Again” (6-24-10)

“Of the more than 1m modifications done in 2008 and 2009, 53% are either delinquent or in foreclosure again in Q110, according to a report from Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS).”

Housing Wire – “FHFA Monthly 30-Year Mortage Rate Report Unchanged in May” (6-24-10)

“In its report, the FHFA said the average interest rate for a conventional, 30-year fixed-rate purchase mortgage with a principal of $417,000 or less was 5.12% in May, even from last month’s report.”

Bloomberg - “Betting Who’s Right on Home Prices: Baker vs Maki” (6-24-10)

“Dean Maki, chief U.S. economist at Barclays Capital, says the worst is over for the U.S. housing sector. Dean Baker, co-director of the Center for Economic and Policy Research, expects another painful decline. They reflect an almost even split among forecasters on the outlook for residential real estate, and whichever side turns out to be right will have made a call on more than just home prices. Housing will play a crucial role in the direction of the nation’s economy and global financial markets, just as it triggered a two-year recession that erased more than 8 million U.S. jobs and $37 trillion from world stock markets.”

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

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The Norris Group Real Estate News Roundup 5/24/10

Monday, May 24th, 2010

Today’s News Synopsis:

According to the NAR, Existing home sales increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April. The CIRB reports permits were pulled for 3,314 total housing units in April. Statistics from CAR show California home sales decreased 8.1 percent in April. The Federal Reserve doesn’t intend to sell any of its assets until after it begins raising interest rates.

In The News:

NAR - “Existing-Home Sales Continue to Improve in April” (5-24-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.”

CBIA - “California Housing Starts Dip in April, CBIA Announces” (5-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,314 total housing units in April, down 6 percent from the same month a year ago and down 9 percent from March. Permits for single-family homes totaled 2,252, down 6 percent from April 2009 and down 5 percent from the previous month, while multifamily permits totaled 1,062, down 7 percent from a year ago and down 16 percent from March.”

CAR - “April 2010 sales and price report” (5-24-10)

“Home sales decreased 8.1 percent in April in California compared with the same period a year ago, while the median price of an existing home rose 21 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Wall Street Journal – “Mortgage Rates Decline” (5-24-10)

“The housing industry had been bracing for months for a period of rising mortgage rates, triggered by the end of the Federal Reserve’s $1.25 trillion mortgage-securities purchase program. Conventional wisdom held that mortgage rates would rise as the Fed pulled back from propping up the market. Instead, many in the industry now say rates could drift as low as 4.5% this summer from 4.86% now, instead of rising to 6% as some economists projected, making for significantly lower payments for Americans buying homes or refinancing their mortgages.”

Bloomberg - “Fed Won’t Sell Mortgage-Backed Assets Until it Raises Rates” (5-24-10)

“The Federal Reserve doesn’t intend to sell any of its assets, including more than $1.1 trillion in mortgage-backed securities, until after it begins raising interest rates, the central bank said in a report to Congress.”

Housing Wire – “FDIC Sells $233m of Commercial Mortgage-Backed Notes” (5-24-10)

“The Federal Deposit Insurance Corp. (FDIC) sold $233m in notes backed by performing and non-performing commercial real estate loans from 22 financial institutions under receivership. The underlying mortgages bear an aggregate unpaid principal balance of $1bn.”

Bloomberg - “FHA Home-Financing Volume Sign of ‘Very Sick System’” (5-24-10)

“The FHA, which backs loans with down payments as low as 3.5 percent, insured $52.5 billion of home-purchase mortgages in the first quarter, compared with $46 billion of purchases of the debt by Fannie Mae and Freddie Mac, according to data compiled by Washington-based Potomac Partners. The FHA and Fannie Mae and Freddie Mac, which regulators seized in 2008, have been financing more than 90 percent of U.S. home lending after a retreat by banks and the collapse of the market for mortgage bonds without government-backed guarantees.”

Bloomberg - “Defaults on Apartment-Building Loans Set Record for U.S. Banks” (5-24-10)

“Defaults on apartment-building mortgages held by U.S. banks climbed to a record 4.6 percent in the first quarter, almost twice the year-earlier level, as more borrowers failed to repay debt approved near the market peak, said Real Capital Analytics Inc. in a report. Defaults on so-called multifamily mortgages rose from 4.4 percent in the fourth quarter and from 2.4 percent during the same period in 2009, the New York-based real estate research firm said today. Commercial-mortgage defaults also rose in the first quarter for loans against office, retail, hotel and industrial properties, Real Capital said.”

Bloomberg - “U.S. Subprime Hunt Targets Goldman, May Skip Cassano: Timeline” (5-24-10)

“Federal prosecutors don’t plan to bring charges against former American International Group Inc. executive Joseph Cassano after a two-year probe of the insurer’s collapse, according to a person familiar with the investigation. Justice Department investigators found there is insufficient evidence to charge Cassano, the former head of AIG’s Financial Products division, the person said.”

Inman - “3 fatal flaws of real estate negotiation” (5-24-10)

“Agents have a wealth of places both online and offline to find strategies that work. Agent blogging sites are rich with great suggestions, many of which are from the best agents in the business. Nevertheless, many of these strategies still use manipulation or one-upmanship. The result is that these old approaches often undermine the agent’s success.”

My Desert – “Short sales on the rise” (5-23-10)

“Real estate experts say they’re seeing spurts of multiple bids and cash buys on homes priced below $250,000 by investors with deep pockets, buyers from other states or residents with equity in their home, a move-up mentality or frazzled nerves from a volatile stock market.”

Washington Post – “Anger at the root of mortgage default problem, study finds” (5-22-10)

“Now White has published a paper based on the personal accounts of 356 strategic defaulters and homeowners on the verge of doing the same. His finding: People who intentionally default on their loans are not as economically rational or calculating in their decision-making as widely thought. In fact, he said, their decisions to pull the plug ‘may not turn out to be economically rational.’ But they walk anyway, in large part because they are at the end of their emotional rope. They have transitioned from feelings of anxiety and hopelessness to outright anger at their lenders, the government and a financial system they consider unfair.”

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 4/26/10

Monday, April 26th, 2010

Today’s News Synopsis:

The CIRB reports that permits were pulled for 3,714 total California housing units in March. Commercial mortgage delinquencies fell to 0.63% in Q1 of 2010. The MARI saw a 50 percent increase in appraisal fraud in 2009. Homeownership rates in Q1 of 2010 decreased to the lowest levels since 2000.

Looking Back:

CBIA - “Housing Starts Climb for Third Straight Month in March, CBIA Announces” (4-26-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,714 total housing units in March, up 4 percent from the same month a year ago and up 7 percent from February. Permits for single-family homes totaled 2,231, up 17 percent from March 2009 and up 24 percent from the previous month, while multifamily permits totaled 1,483, down 11 percent from a year ago and down 12 percent from February.”

Bloomberg – “Fed May Keep Rates Low as Tight Credit Impedes Small Businesses” (4-26-10)

“Fed Chairman Ben S. Bernanke said in an April 7 speech that while a U.S. economic recovery is under way, ‘we are far from being out of the woods,’ in part because of tight credit.”

Bloomberg - “Bankers Said ‘Anything’ to Get High Rating, S&P Ex-Analyst Says” (4-26-10)

“Just past midnight on May 3, 2005, Standard & Poor’s analyst Chui Ng e-mailed co-workers to broker a solution to demands by Goldman Sachs Group Inc. bankers that he said violated two or more of the ratings company’s internal guidelines. Goldman Sachs was adding $200 million in debt at the ‘last minute’ to a $1.5 billion bond pool called Adirondack Ltd., Ng wrote. That meant the New York investment bank would originate 13 percent of the pool itself, two-and-a-half times the 5 percent limit set by S&P.”

Housing Wire - “Xerox Aims to Lead Originators into Paperless Mortgage World” (4-26-10)

“The latest venture in mortgages for Xerox Corp. (XRX: 11.35 +0.27%) is a move to make the name synonymous with paperless electronic mortgage origination, according to the company. The company is now focusing efforts on its eVault, an off-site digital storage repository for electronic loan documents, as a way to try to grab more market share in paperless origination. Currently the company holds more than 35,000 mortgages in the vault. The software-as-a-service (SaaS) is offered on a per-loan basis, which the company said makes it more affordable for originators with varying levels of loan volume.”

Housing Wire – “California Commercial Mortgage Delinquencies Drop in Q110″ (4-26-10)

“In California, the delinquency rate of commercial mortgages fell to 0.63% in Q110, a 34-basis point (bp) drop from 0.97% at the end of 2009, according to the California Mortgage Bankers Association (CMBA). On a dollar basis, the delinquent rate reached 0.63%, which translates to a 0.29% delinquent rate on a loan-volume basis. Of the more than 6,400 commercial loans surveyed by the CMBA, 19 loans totaling $344.6m were more than 90 days delinquent. The survey included 16 mortgage banking firms and $54.7bn in commercial and multi-family loans.”

Housing Wire – “Appraisal Fraud Jumps 50% in 2009: MARI” (4-26-10)

“The Mortgage Asset Research Institute (MARI), whose subscribers represent 70% of the mortgage finance space, reports today appraisal fraud is taking a larger proportion of trickery alleged in suspicious activity reports (SARs) filed with the Financial Crimes Enforcement Network (FinCEN). In 2008, suspected appraisal/valuation fraud stood at 22% of mortgage fraud reports. In 2009, that jumped to 33%, said MARI in a conference call on its yearly results.”

Housing Wire – “Monday Morning Cup of Coffee” (4-26-10)

“Regulators closed seven banks Friday — all based in the state of Illinois — at a total cost to the Federal Deposit Insurance Corp. (FDIC) Deposit Insurance Fund (DIF) of nearly $974m.”

Housing Wire - “Homeownership Hits Lowest Rates Since 2000″ (4-26-10)

“Fewer Americans own homes in Q110 than in any quarter since the beginning of 2000, according to data from the Census Bureau. The seasonally adjusted homeownership rate fell to an average of 67.2% percent of qualifying Americans who own homes in Q110, dropping 1bp from 67.3% in Q409. It was the lowest rate since the 67.1% mark in the first quarter of 2000. The rate reached its height in Q105 at 69.2%, according to the Census.”

Looking Back:

One year ago, Existing, single-family home sales increased 63.8 percent in one month. 19.1 million homes stood unoccupied in the first quarter of 2009. Simon Property Group attempted to buy General Growth prior to its bankruptcy. Rent rates decreased in 19 of the 23 O.C. cities.

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The Norris Group Real Estate News Roundup 1/4/09

Monday, January 4th, 2010

Today’s News Synopsis:

Forty percent of national home sales in 2009 were foreclosures or short sales. Economists and real estate experts are complaining that Obama’s $75 billion foreclosure prevention program has damaged the market. The CIRB reports that builder permits for single-family houses fell 3.5 percent. According to The Institute for Supply Management, most companies showed an increased rate of expansion in December.

In The News:

San Francisco Chronicle – “Foreclosures weigh on home appraisals” (1-4-09)

“Roughly 40 percent of all home sales this year were foreclosures or short sales, meaning the property sold for less than the mortgage. In some markets, like Las Vegas and Phoenix, they’ve hit more than 50 percent.”

New York Times – “U.S. Loan Effort Is Seen as Adding to Housing Woes” (1-4-09)

“The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.”

Market Watch – “Low rates didn’t cause bubble, Bernanke says” (1-3-09)

“it was lax supervision of toxic mortgages by the Fed and other bank regulators — along with excessive flows of capital around the globe — that inflated the bubble, setting up the world economy for what may have been the worst economic crisis in modern history, Bernanke said.”

Bloomberg - “GMAC Said to Discuss U.S. Aid Package of $3 Billion or More” (1-4-09)

“GMAC Inc., the home and auto lender that counts the U.S. government as the largest stakeholder, is discussing with the Obama administration a third bailout of $3 billion to $4 billion, said a person familiar with the matter.”

Bloomberg - “Companies in U.S. Expand at Fastest Pace Since 2006″ (1-4-09)

“Companies in the U.S. expanded in December at the fastest pace in almost four years, signaling the economic recovery is gaining speed heading into 2010. The Institute for Supply Management-Chicago Inc. said today its barometer rose to 60, exceeding the most optimistic estimate of economists surveyed by Bloomberg News and the highest level since January 2006. The gauge, in which readings greater than 50 signal expansion, showed companies boosted production and employment as orders climbed.”

Orange County Register – “Did housing’s troubles double?” (1-4-09)

“Well, things don’t look so harsh when your spyglass is 10 years long and short-run bumps and bruises are smoothed out. The median selling price for all residences in Orange County in the Zeros was $431,000, roughly double the pricing of the 1990s.”

Orange County Register – “O.C. builders near worst year since WW II” (1-4-09)

“Through November, local building permits for single-family homes filed by developers fell 3.5% from what had been the slowest year since World War II, the Construction Industry Research Board reports.”

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The Norris Group Real Estate News Roundup 12/23/09

Wednesday, December 23rd, 2009

Today’s News Synopsis:

Homebuilders pulled 46 percent fewer permits from November of last year. According to the Mortgage Bankers Association, mortgage application volume decreased by 10.7 percent from last week. Freddie Mac purchased 13 percent fewer mortgage purchases from the previous month. Equifax reports that HELOC originations fell 36 percent from one year ago.

In The News:

CBIA - “Housing Production Posts Decrease in November, CBIA Announces” (12-13-09)

“According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,540 total housing units in November, down 12 percent from October, and down 46 percent from November 2008. Permits for single-family homes totaled 1,710, down 20 percent from the previous month, but up 18 percent from the same period last year, while multifamily permits totaled 830, up 9 percent from October but down 74 percent from a year ago.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (12-23-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending December 18, 2009.  The Market Composite Index, a measure of mortgage loan application volume decreased 10.7 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 10.9 percent compared with the previous week.”

Housing Wire – “BofA Sues MGIC Over Unpaid Insurance Claims” (12-23-09)

“Bank of America’s (BAC: 15.18 -0.98%) Countrywide Home Loans unit sued Mortgage Guaranty Investment Corp. (MTG: 5.7798 -9.12%) over allegations the Wisconsin-based mortgage insurer denied millions of valid claims.”

Housing Wire – “Freddie Buys 7% More Refi Mortgages in November” (12-23-09)

“Mortgage giant Freddie Mac (FRE: 1.3295 -1.52%) reported $27.9bn in mortgage purchases and issuances in November, a 13% drop from $32.1bn in October, according to a monthly summary of the agency’s portfolio.”

Housing Wire – “HUD Delays New FHA Appraiser Guidelines” (12-23-09)

“According to an FHA memo obtained by HousingWire, the January 1, 2010 implementation of Mortgagee Letter (ML) 2009-28 (download here) won’t take affect until February 15, 2010. The new FHA regulations are similar to those implemented by the government-sponsored enterprises (GSEs) to ensure appraiser independence with the Home Valuation Code of Conduct (HVCC).”

Housing Wire – “Equifax: HELOC Origination Down 36%” (12-23-09)

“Origination of new home equity lines of credit (HELOC) accounts is down 36% from year-ago levels, Equifax (EFX: 31.28 -0.26%) said. There were 75,600 HELOC accounts originated in September 2009, down from 117,800 in September 2008, according to the Atlanta-based credit bureau’s most recent monthly credit trend report, derived from Equifax’s nearly 200m US consumer credit files.”

Bloomberg - “U.S. Economy: Spending and Incomes Climb, New-Home Sales Drop” (12-23-09)

“American consumers’ spending and incomes climbed in November, indicating the biggest part of the economy is poised to strengthen as the labor market recovers. Purchases rose 0.5 percent as households took advantage of discounts on autos and electronics, figures from the Commerce Department showed today in Washington. The gain was smaller than anticipated as unseasonably warm weather depressed utility use. Another report showed new-home sales unexpectedly fell as potential buyers were discouraged by the scheduled expiration of a tax credit. The tax break was later extended.”

Bloomberg - “General Growth Has Deals to Restructure $11.6 Billion of Debt” (12-23-09)

“General Growth Properties Inc., the second-largest U.S. mall owner, has won approval from creditors and a federal court to restructure loans totaling $11.6 billion, according to a lawyer.”

Looking Back:

One year ago, existing home sales fell 8.6 percent from October to November. Mortgage default filings against homeowners decreased for the first time in 3 years. Moorlach predicted that 10 municipal bankruptcies would occur in 2009. The U.S. economy shrank by 0.5 percent from the previous month.

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The Norris Group Real Estate News Roundup 11/24/09

Tuesday, November 24th, 2009

Today’s News Synopsis:

The CIRB reports that homebuilders pulled 6 percent less permits from September. American banks decreased lending by 2.8 percent in the third quarter. The FOMC suspects that the economy will take 5 years to return to an acceptable rate of growth.  According to First American CoreLogic, 23 percent of all US homes are less valuable than the mortgages owed on them.

In The News:

CBIA - “California Housing Starts Continue Decline in October, CBIA Announces” (11-24-09)

“According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,815 total housing units in October, down 6 percent from September, and down 33 percent from October 2008. Permits for single-family homes totaled 2,017, down 9 percent from the previous month and down 14 percent from same period last year, while multifamily permits totaled 798, up 5 percent from September but down 57 percent from a year ago.”

Los Angeles Times – “Index shows moderate gain in home prices in September” (11-24-09)

“Home prices in 20 U.S. cities ticked up modestly in September, marking the fifth consecutive month of improvement, according to a closely watched national index released this morning. The Standard & Poor’s/Case-Shiller index increased 0.3% from the prior month on a seasonally adjusted basis, after a 1.1% rise in August. The index fell 9.4% from September 2008 and marked the narrowest year-over-year decline since the end of 2007.”

The Washington Post – “Decline in lending is largest since 1984″ (11-24-09)

“Lending by American banks plunged by 2.8 percent in the third quarter, the largest drop since at least 1984 and the fifth consecutive quarter in which banks have reduced lending, the Federal Deposit Insurance Corp. reported Tuesday morning.”

Housing Wire - “BarCap Acquires Commercial Real Estate Holdings Firm” (11-24-09)

“Barclays Capital, in a joint venture with Goff Capital, acquired Crescent Real Estate Equities Limited Partnership, or Crescent, from Morgan Stanley Real Estate Funding II.”

Housing Wire – “FOMC Sees Sustained Growth Five Years Away” (11-24-09)

“It will be at least five years before the economy experiences a sustainable rate of growth and levels of unemployment and inflation acceptable to the Federal Reserve, the Federal Open Market Committee said in its Nov. 4 meeting.”

Housing Wire – “FHFA Quarterly HPI Up Slightly in Q309″ (11-24-09)

“US house prices inched slightly higher in Q309 compared to Q209 in the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI). The HPI uses sales price information from mortgages acquired by the government-sponsored enterprises (GSEs), which increased 0.2% quarter-over-quarter. Year-over-year, the purchase-only HPI decreased 3.8% in the third quarter.”

Housing Wire – “Negative Equity, Not Job Loss, Primary Driver of Defaults” (11-24-09)

“if coming defaults are caused by unemployment, then the relevant response, says Goodman, would be to subsidize mortgage payments. On the other hand, if negative equity triggers defaults, then principal reduction must receive a higher priority in modification program waterfalls.”

Bloomberg - “Almost One in Four U.S. Homeowners Are ‘Underwater’” (11-24-09)

“The number of U.S. homes worth less than the debt owed on them reached almost 10.7 million, or 23 percent of all mortgaged properties, at the end of the third quarter, according to a report from First American CoreLogic.”

Orange County Register – “The biggest home seller mistakes” (11-24-09)

“Learn about your local market. What is selling and how long is it taking to sell? Find out what the trends are in your neighborhood. Is the market rising, falling or flat? How are local inventory levels?”

Looking Back:

One year ago, existing home sales decreased by 3.1 percent in October. The U.S. government announced a plan to spend 7.7 trillion dollars to ease credit problems. Downey Financial said it would file for bankruptcy.

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The Norris Group Real Estate News Roundup 9/24/09

Thursday, September 24th, 2009

Today’s News Synopsis:

Research from the Construction Industry Research Board shows that the number of home building permits taken in August was down 5 percent from July. The NAR reports that existing home sales decreased by 2.7 percent from July to August. A study showed that foreclosure prevention laws in California have failed to significantly help home owners. The Federal Reserve intends to continue its stimulus plan and will continue to buy mortgage securities.

In The News:

CBIA - “Housing Production Slips Again in August, CBIA Announces” (9-24-09)

“According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,911 total housing units in August, down 5 percent from July. When compared to August of last year, production in 2009 was way down.”

NAR - “Existing-Home Sales Ease Following Four Monthly Gains” (9-24-09)

“Existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 2.7 percent to a seasonally adjusted annual rate1 of 5.10 million units in August from a pace of 5.24 million in July, but remain 3.4 percent above the 4.93 million-unit level in August 2008. In the previous four months, sales had risen a total of 15.2 percent.”

MBA - “Commercial/Multifamily Mortgage Debt Outstanding Declines in Second Quarter 2009″ (9-24-09)

“The $3.47 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $9.9 billion or 0.3 percent from the first quarter 2009. Multifamily mortgage debt outstanding grew to $914 billion, an increase of $6 billion or 0.7 percent from first quarter.”

San Francisco – “Foreclosure-mediation laws not much help” (9-24-09)

“Laws in California and other states requiring mortgage companies to talk to troubled homeowners before foreclosing on them are toothless, according to a study released Wednesday.”

Mercury News – “‘Equity share’ loans of up to $75K offered to Silicon Valley homebuyers” (9-24-09)

“Under the ‘equity share co-investment,’ or ESCO program, The Housing Trust will advance as much as $75,000 to first-time home buyers who make up to 140 percent of the region’s area median income, or about $147,700 a year for a family of four. The money will be used to match a buyer’s 5 percent to 15 percent down payment.”

Bloomberg - “Luxury Hotels in U.S. Risk Default as $850 Rooms Remain Empty” (9-24-09)

“Loans secured by more than 1,500 hotels with a total outstanding balance of $24.5 billion may be in danger of default, according to Realpoint LLC, a credit rating company that tracks commercial mortgage-backed securities. Some of the biggest loans, put on the company’s watch list because of late payments, decreasing occupancies or cash flow, were made to luxury properties where rooms can cost more than $850 a night.”

Bloomberg - “Fed Signals Growth Return Not Enough to End Stimulus” (9-24-09)

“While the economy has ‘picked up,’ the central bank’s planned asset purchases will help ensure a ‘gradual return to higher levels of resource utilization,’ the Fed’s Open Market Committee said yesterday. Policy makers committed to complete their $1.25 trillion in purchases of mortgage securities and extended the end-date of the program to March from December.”

Bloomberg - “New Home Sales in U.S. to Climb 30% in 2010, Goldman Sachs Says” (9-24-09)

“New U.S. home sales may jump 30 percent next year, buoyed by low mortgage rates and a ‘greater than 50 percent probability’ that Congress will extend a tax credit for first-time buyers, Goldman Sachs Group Inc. said.”

Orange County Register – “O.C. property investor seeks bankruptcy rescue” (9-24-09)

“Unable to pay off construction loans coming due, office developer Mammoth Equities LLC has filed four bankruptcy cases seeking to rescue half its properties from foreclosure. The San Juan Capistrano developer owes nearly $68 million on loans that came due or are about to come due on five California office buildings it owns, said senior Mammoth officer Joe Ryerson. He estimated that the collective value of those properties is about $41 million today.”

Inman - “Facebook app promotes property listings” (9-24-09)

“That caveat out of the way, CenterStage looks promising for spreading property listings information on Facebook. If you aren’t using Facebook, then CenterStage is a no-go. Though perhaps you could use it to jump-start a Facebook campaign.”

Looking Back:

One year ago, the NAR reported that existing home sales fell by 2.2 percent. Research from the CBIA showed that housing permits were down 61 percent from the previous year. The MBA’s mortgage application survey showed that mortgage applications fell by 10.6 percent from the previous week.

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