The Norris Group Blog

California Real Estate Headline Roundup

Posts Tagged ‘Citigroup’

« Older Entries

The Norris Group Real Estate News Roundup 7/29/10

Thursday, July 29th, 2010

Today’s News Synopsis:

RealtyTrac reports foreclosure filings incrased in 75% of the nation’s metro areas during the first 2 quarters. Statistics from the Department of Labor show unemployment insurance claims fell by 11,000 last week. According to Freddie Mac’s weekly survey, the average rate for a 30-year fixed-rate mortgage decreased to 4.54%. Fiserv predicts that single-family home prices will fall 4.9 percent during the next 12 months.

In The News:

NAHB - “Remodeling Dips but Shows Signs of Stabilization” (7-29-10)

“The remodeling market slid backward during the second quarter, according to the latest National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The RMI (combining current and future market indicators) sunk to 40.7 from 43.8 in the first quarter. Current market conditions slid back to 42.6 from 44.5 in the previous quarter. Future indicators of remodeling business declined to 38.9 from 43.1 in the last quarter.”

CNN - “Foreclosures climb in 75% of metro areas” (7-29-10)

“Foreclosure filings climbed in 75% of the nation’s metro areas during the first half of 2010, according to a report issued Thursday. RealtyTrac, an online marketer of foreclosed homes, said that California, Florida, Arizona and Nevada continue to lead the nation in the rate of foreclosures. Las Vegas was the worst-hit city.”

San Francisco Chronicle – “Feds put up $1 billion more for mortgage relief” (7-29-10)

“Congress has just come up with an extra $1 billion to help people who can’t pay their mortgage because of unemployment or a medical problem. Under this new Emergency Mortgage Relief program, eligible homeowners who are at least three months delinquent can get up to $50,000 apiece in federal loans to pay their mortgages.”

Housing Wire – “Weekly Jobless Claims Beat Consensus, Slip to 457,000″ (7-29-10)

“Initial unemployment insurance claims fell 11,000 in the week ending July 24, beating the market consensus of a 4,000-claim drop. Jobless claims slipped to a seasonally adjusted 457,000 from the previous week’s upwardly revised figure of 468,000, according to new data today from the US Department of Labor. The four-week moving average slipped 4,500 to 452,500 this week.”

Housing Wire – “Weekly Mortgage Rates Hit New Lows” (7-29-10)

“The Freddie Mac survey put the average rate for a 30-year fixed-rate mortgage (FRM) at 4.54% with an average 0.7 origination point for the week ending July 29, down from last week’s average of 4.56% and a year ago, when the average was 5.25%. It’s a new record low for the survey, which began in 1971.”

Housing Wire – “Fiserv Sees More Pain Ahead in House Prices, Projects 4.9% Decline” (7-29-10)

“Fiserv (FISV: 49.22 +0.70%), financial services technology provider, found that national average house prices rose 2% in Q110 from a year before — the first yearly gain since 2006. Fiserv projects that single-family house prices are likely to fall another 4.9% over the next 12 months as tight economic circumstances continue. Continued high unemployment and a large number of distressed properties remaining in markets like Florida, Arizona and Nevada are weighing on the housing market.”

Housing Wire – “SEC Charges Citigroup $75m for Misrepresentation of Subprime Assets” (7-29-10)

“The Securities Exchange Commission (SEC) today charged Citigroup Inc. with misleading investors about the company’s exposure to subprime mortgage assets targeting two Citi executives for their roles in the incident that will cost the company $75m. Citigroup will not dispute the fine, the SEC said, and will pay the full amount.”

Looking Back:

One year ago, the MBA reported that mortgage application volume decreased by 6.3 percent within a week. A bill was being supported by 276 members of the House, which would have audited central banks. About $2.2 trillion of U.S. commercial properties bought or refinanced since 2004 became less valuable than their original price, said Real Capital Analytics in 2009.

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

Tags: , , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 7/27/10

Tuesday, July 27th, 2010

Today’s News Synopsis:

The S&P home price index suggests that prices increased by 1.3 percent from April to May. 91 of the top 100 homebuying zip codes are in California. The vacancy rate for rental housing has remained flat at 10.6 percent for the past year. MPF Research reports the number of occupied apartments grew by 215,000 in the 64 largest U.S. markets in the first half of 2010.

In The News:

Associated Press – “Home prices increase 1.3 pct. in May from April” (7-27-10)

“The Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday posted a 1.3 percent increase in May from April. Nineteen of 20 cities showed price gains month over month. Minneapolis and Atlanta led the way with 2.8 percent and 2 percent increases, respectively. And San Diego posted its 13th straight monthly gain.”

Inman - “California ‘hot’ among homebuyers” (7-27-10)

“Of the report’s 100 ‘hottest’ ZIP codes nationwide, 91 were in California. This means that, on average, homes in these ZIP codes sold for the most above listing price, while homes in the ‘coldest’ ZIP codes sold for the most under listing price.”

Housing Wire – “Housing Vacancy, Homeownership Rates Remain Level in Q210″ (7-27-10)

“The 2.5% vacancy rate of owner-occupant housing units was only 10 basis points (bps) below the previous quarter and remained level with the year-ago quarter. The rental housing market’s vacancy rate of 10.6% in Q210 was level with the previous quarter and year-ago quarter. Additionally, the homeownership rate slipped to 66.9%, nearly level with 67.1% in the previous quarter”

Housing Wire – “HUD Fines CitiMortgage $700,000 for Failure to Report Delinquencies” (7-27-10)

“The US Department of Housing and Urban Development (HUD) reached a $700,000 settlement with CitiMortgage, Inc. (CMI) after the company failed to report delinquent loans by the specified monthly deadline. The action was reported in a recently released notice of actions being taken against Federal Housing Administration (FHA) lenders that failed to comply with government standards for lending practices.”

Housing Wire – “FHFA Sees 30-Year Mortage Rate Dip to 5% June” (7-27-10)

“The average contract mortgage rate on conventional 30-year fixed-rate mortgages slipped to 5% in June, 12 basis points (bps) down from a month earlier, according to the Federal Housing Finance Agency (FHFA). The rate had held at 5.12% for the past two months. The contract rate on the composite of all mortgage loans (both fixed- and adjustable-rate) fell 9 bps to 4.9%”

Bloomberg - “Apartment Rentals Surge in U.S. on Home Foreclosures, Job Gains” (7-27-10)

“The number of occupied apartments increased by 215,000 in the 64 largest U.S. markets in the first half, according to MPF Research. That’s almost double the units added in all of 2009 and the most since the firm began tracking the data in 1992. The vacancy rate declined to 6.6 percent last month from 8.2 percent in December.”

Bloomberg - “U.S. Cities, Counties Poised to Cut 500,000 Jobs, Report Finds” (7-27-10)

“U.S. local governments may cut almost 500,000 jobs through next year to cope with sliding property taxes, a decline in state and federal aid and added need for social services, according to a report released today. The report, a result of a survey by the National League of Cities, the U.S. Conference of Mayors and the National Association of Counties, showed local governments are moving to cut the equivalent of 8.6 percent of their workforces from 2009 to 2011. That suggests 481,000 employees will lose their jobs, according to the report, which said the tally may yet rise.”

Orange County Register – “Hear why next housing peak ‘2016 or beyond’” (7-27-10)

“Economist Mark Schniepp of the California Forecast tells ocregister.com in a podcast interview that local housing will endure a recovery that’s ‘painstakingly frustrating’ in its modesty with improving but not impressive sales volumes and prices. But it will take a big turnabout in the employment picture before hosuing’s rebound become significant but it will still be ‘until 2016-2017 or beyond’ before the old peaks are surpassed.”

Housing Wire – “Big 4 Banks Add $9.5bn in Nonperforming, Foreclosed Properties in One Year” (7-27-10)

“Each of the ‘big-four’ banks, Bank of America (BAC: 14.19 +0.28%), Wells Fargo (WFC: 28.39 +1.72%), JPMorgan Chase (JPM: 40.69 +0.89%) and Citigroup (C: 4.16 +0.24%) released quarterly earnings reports for Q210 in July, reporting a total increase of $9.5bn in nonperforming or foreclosed properties from the same quarter last year.”

Looking Back:

One year ago, pools increased a homes value by up to 11 percent in Southern California. Fiserv predicted that California would be the hottest home market in 2010. New home purchases climbed 11 percent in June 2009.

Tags: , , , , , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 6/29/10

Tuesday, June 29th, 2010

Today’s News Synopsis:

Standard & Poor claims U.S. home prices rose 0.8 percent in April. According to the MBA, independent mortgage bankers and subsidiaries made an average profit of $1,135 on each loan they originated in 2009.  Congress is still debating over legislation that would eliminate the HVCC in 90 days if passed. The House voted 409-5 to extend the closing deadline for the tax credit to Sept. 30.

In The News:

Los Angeles Times – “Home prices rise in 20 major cities as buyers rush to obtain tax credit” (6-29-10)

“Prices rose 3.8% in April compared with April 2009 and were up 0.8% from March, when the data aren’t adjusted for seasonal fluctuations, according to the Standard & Poor’s/Case-Shiller index of 20 metropolitan areas. California cities continued to appreciate, according to the nonseasonally adjusted index, with Los Angeles and San Diego up 0.7% in April and San Francisco up 2.2%.”

Mortgage Bankers Association – “Production Profits Rebounded in 2009, According to MBA Study of Independent Mortgage Bankers and Subsidiaries” (6-29-10)

“Independent mortgage bankers and subsidiaries made an average profit of $1,135 on each loan they originated in 2009, compared to $305 per loan in 2008, according to the Mortgage Bankers Association (MBA)’s Annual 2009 Mortgage Bankers Production Survey released today.”

Housing Wire – “Senator Yanks Financial Reform Support Due to Last Minute Bank Tax Change” (6-29-10)

“Senator Brown sent a letter to sponsors Sen Christopher Dodd (D-CT) and Rep Barney Frank (D-MA) citing the addition of a $19bn bank tax included in the House, but not the Senate versions, as the reason for pulling support. The bill reconciled late last week.”

Housing Wire – “Amendment to Eliminate HVCC Still Alive in Financial Reform Bill” (6-29-10)

“An amendment to the Wall Street Reform Bill that would eliminate the Home Valuation Code of Conduct (HVCC) survived congressional debates last week, according to one representative’s office. A congressional conference last week took place to reconcile both versions of the House and Senate financial reform bills. As it stands now, the HVCC would be eliminated 90 days after the bill is signed.”

Bloomberg - “Volcker Rule May Give Goldman, Citigroup Until 2022 to Comply” (6-29-10)

“Goldman Sachs Group Inc. and Citigroup Inc. are among U.S. banks that may have as long as a dozen years to cut stakes in in-house hedge funds and private- equity units under a regulatory revamp agreed to last week. Rules curbing banks’ investments in their own funds would take effect 15 months to two years after a law is passed, according to the bill. Banks would have two years to comply, with the potential for three one-year extensions after that.”

Bloomberg - “U.S. House Extends Closing Deadline for Homebuyer Tax Credit” (6-29-10)

“The U.S. House of Representatives voted to give homebuyers who qualified for a federal tax credit more time to settle on their pending purchases. The House voted 409-5 to extend the deadline for closing home purchases to Sept. 30. The program initially required borrowers who signed contracts before April 30 to complete paperwork by July 1 to get a tax credit of as much as $8,000.”

Orange County Register – “O.C. brokers raking in more cash” (6-29-10)

“Dollars earned by brokers from Orange County home sales jumped 27.3% in May over broker revenues generated the same month a year ago. It was the first May in five years in which broker revenues increased from year-earlier levels, according to new data from the Southern California Multiple Listing Service.”

Orange County Register – “1 in 4 transactions a short sale” (6-29-10)

“Of the 2,778 homes sold through the MLS, 672 or 24.2% of them were so-called ’short sales.’ By comparison, homes seized by lenders through foreclosure accounted for 13% of all May sales, or one out of every eight. Altogether, ‘distressed sales’ accounted for almost 40% of all homes sold through the MLS in May.”

Looking Back:

One year ago, the House of Representatives passed legislation that required new homes to be built 30 percent more energy efficient than mandated in the 2006 International Energy Conservation Code. The federal regulator for Fannie Mae and Freddie Mac claimed that home prices were bottoming.

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.

Tags: , , , , , , , , , , , , , , ,
Posted in News | No Comments »

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

Wednesday, May 12th, 2010

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tags: , , , , , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 4/12/10

Monday, April 12th, 2010

Today’s News Synopsis:

According to First American CoreLogic, distressed home sales in Orange County are selling 34 percent under the typical market place. Altos Research reports a 0.5 percent in the national median home price. A modification becomes permanent through HAMP after the borrower makes all three monthly payments during the trial period. Fiserv estimates that home prices will not return to the past peak levels until 2025.

In The News:

My Desert – “Valley’s Housing Market Warming” (4-12-10)

“The median sales price of new and single-family homes rose 11 percent to about $200,000, about $20,000 higher than in February 2009. Home sales also rose 9.4 percent compared to the same period last year. Real estate sales have been outpacing sales from the previous year every month since October. Sales volume rose 31 percent in November, 29 percent in December, and 22.2 percent in January.”

Orange County Register – “Distressed home discounts at 6-month high” (4-12-10)

“Orange County homebuyers got a 34% price discount when they chose a distressed property vs. overall market prices in January, according to First American CoreLogic. That’s the biggest discount in six months.”

Wall Street Journal – “Second Mortgages Vex Borrowers” (4-12-10)

“Banks are coming under increasing political pressure to write off or at least write down second-lien and other junior mortgages as a way to help borrowers keep their homes or extract themselves from heavy debt. As the Wells Fargo suit shows, however, banks often are reluctant to give up on loans when they see a chance of recovering all or part of their money. This issue will be the focus of a hearing Tuesday by the House Financial Services Committee in Washington. Panel members are due to quiz executives from Wells Fargo, Bank of America Corp., Citigroup Inc. and J.P. Morgan Chase & Co. about their junior-lien mortgage policies.”

Bloomberg - “Bank Profits Dimmed by Prospect of Home-Equity Losses” (4-12-10)

“Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. may have to set aside an additional $30 billion to cover possible losses on home-equity loans, an amount almost equal to analysts’ estimates of profit at the three banks this year. The cost of these reserves was calculated by CreditSights Inc., a New York-based research firm whose prediction almost four years ago proved prescient after banks reported unprecedented mortgage-related writedowns. Recognizing the home- equity loan losses is unfinished business from the housing bubble, CreditSights said in a March 29 report.”

Housing Wire – “So, Where Will Housing Double Dip?” (4-12-10)

“Put in more plain terms, a state with a 1% foreclosure rate and an 11% delinquency rate should be expected to feel the impact of distressed properties moving through the pipeline far more than a state with a 5% foreclosure rate and a 5% delinquency rate, for example. The reasoning is simple: distressed property sales (short sales or REOs) are a drag on retail home prices. In markets that have seen comparatively less foreclosures relative to the volume of delinquencies stuck in the pipeline, the impact of those delinquencies will be felt proportionately more strongly as they are finally dealt with.”

Housing Wire – “Altos Sees House Price Decline Decelerate in March” (4-12-10)

“The median house listing price declined 0.5% in the Altos Research 10-city composite in March, improved from February’s 1.3% decline in an indication the pace of decline may be decelerating. March, the eighth consecutive month of decline, brings the Q110 price decline to 1.8%. But weekly price changes have shown a modest upward trend in the past seven weeks, which means a uptick in house prices could arrive in the coming months, Altos said.”

Housing Wire – “BofA Completes 33,000 Permanent HAMP Mods” (4-12-10)

“Bank of America (BAC: 18.66 +0.38%) completed almost 32,900 permanent mortgage modifications through the Home Affordable Modification Program (HAMP) through March, up from 20,666 in February. The Treasury Department launched HAMP in March 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. When Treasury first reported permanent modifications in November 2009, BofA reported 98 permanent modifications. A modification becomes permanent through HAMP after the borrower makes all three monthly payments during the trial period.”

Housing Wire – “Despite HAMP, Mortgage Delinquency Grows 21% over 2009: LPS” (4-12-10)

“The number of mortgages delinquent at the end of February 2010 is 21.3% higher than the same time last year despite government-led modification efforts, according to the latest monthly report from Lender Processing Services (LPS: 37.61 +0.94%).”

Housing Wire – “Peak House Prices Will Return to Sand States after 2025: Fiserv” (4-12-10)

“Housing markets that experienced the greatest inflation in house prices — including certain metro areas in sand states California, Florida, Arizona and Nevada — will not see a return of peak-level home prices before 2025, according to financial services technology provider Fiserv.”

Wall Street Journal – “AIG, Goldman Unwind Soured Trades” (4-12-10)

” The derivatives unit of American International Group Inc. has unwound most of its soured mortgage trades with Goldman Sachs Group Inc. still left after the insurer was bailed out by the U.S. government in 2008, according to people familiar with the matter. The move by AIG Financial Products to terminate credit-default swaps insuring about $3 billion of mortgage-asset pools arranged by Goldman caused AIG to realize a $1.5 billion to $2 billion loss last year, the people said.”

Bloomberg - “Pimco Says Investors to Hold Down U.S. Mortgage Rates” (4-12-10)

“Investor demand for mortgage-backed securities will keep U.S. home-loan rates down after the Federal Reserve ended its purchases of the debt, said Pacific Investment Management Co., manager of the world’s biggest bond fund. The Fed’s unprecedented program to buy $1.25 trillion of the securities that guide home-loan costs stopped U.S. housing prices from falling, Scott Simon, who is in charge of investing in the notes at Pimco, wrote on the company’s Web site.”

Tags: , , , , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 3/25/10

Thursday, March 25th, 2010

Today’s News Synopsis:

New rules for the HAMP program may require servicers to screen borrowers for modification after only 31 days of delinquency. ForeclosureListings.com shows that California experienced an 11.9% increase in foreclosures. Freddie Mac reports the 30-year FRM rate is currently at 4.99 percent. According to the Comptroller of the Currency,  the re-default rate for modified loans is over 50 percent.

In The News:

Los Angeles Times – “Bank of America to reduce mortgage principal for some borrowers” (3-25-10)

“Amid increasing government pressure to stem foreclosures, Bank of America Corp. said Wednesday that it would offer to erase as much as $3 billion in principal owed by thousands of severely delinquent borrowers who owe more than their homes are worth.”

Mercury News – “Citigroup agrees to modify some second mortgages” (3-25-10)

“Citigroup on Thursday became the latest lender to commit to the government’s program to modify second mortgages as a recovery in the housing market appears to be in jeopardy. With Citi on board, now four big owners of home mortgages in the U.S. have joined the program — part of the Obama administration’s $75 billion loan modification plan aimed at reducing monthly payments to help customers stay in their homes. Bank of America, Wells Fargo and JPMorgan Chase already participate.”

Inman - “Home values rise in Boston, San Diego” (3-25-10)

“Radar Logic’s monthly RPX report, based on 28 days of price-per-square-foot data, found that the price per square foot rose most in Boston (up 15.5 percent, to $187.84 per square foot) year-over-year in January, and dropped most in Las Vegas (down 21.4 percent, to $76.18 per square foot) during that period.”

Housing Wire - “Treasury to Require HAMP Servicers to Step Up Outreach Efforts” (3-25-10)

“Allison announced that servicers must pursue early intervention, pre-screening every borrower that misses two or more payments to determine eligibility for HAMP and soliciting those qualifying borrowers for HAMP participation. This change encourages servicers to reach out to the borrower as early as 31 days of delinquency when the chance for homeownership retention is best, according to a supplemental directive on the changes provided to HousingWire.”

Housing Wire – “ForeclosureListings: Texas Leads Nation in Foreclosure Gains” (3-25-10)

“The 35% increase of Texas foreclosures in February was the highest monthly gain of any state in the country, according to data from ForeclosureListings.com, an online foreclosure marketplace. Michigan had the second highest increase at 17.5%, followed by California at 11.9% and Florida at 4.7%.”

Housing Wire – “Mortgage Rates Increase as Fed MBS Purchase Program Nears End” (3-25-10)

“Freddie Mac (FRE: 1.29 +0.78%) said the average rate for a 30-year fixed-rate mortgage (FRM) was 4.99% with an average 0.6 origination point for the week ending March 25, up from last week’s average of 4.96%. A year ago, the rate average was 4.85%. The Bankrate.com survey of large banks and thrifts put the average rate for a 30-year FRM at 5.11% with an average 0.41 origination point, up from last week’s average of 5.07%, but down from last year’s average of 5.19%.”

Bloomberg - “Half of U.S. Home Loan Modifications Default Again” (3-25-10)

“More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report. The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months.”

Bloomberg - “Prepare to Pay 15% Less for New U.S. Homes: Chart of the Day” (3-25-10)

“New-home prices may have to tumble 15 percent in the U.S. before sales start to rebound, according to Michael Panzner, an author and financial blogger. ”

Looking Back:

One year ago, The MBA reported a 32 percent increase in mortgage applications from the previous season. One in five homeowners owed more on their mortgage than their house was worth. The Federal Reserve began purchasing long-term treasuries. New home sales in the U.S. increased by 4.7 percent within a month.

Tags: , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 3/17/10

Wednesday, March 17th, 2010

Today’s News Synopsis:

The CBIA reports that new home sales decreased by 12 percent from January of 2009. Mortgage loan application decreased by 1.9 percent from last week. HOPE NOW made over 99,000 modifications in January, and HAMP made over 50,000.

In The News:

CBIA - “California New-Home Market Begins 2010 Still in the Red, CBIA Announces” (3-17-10)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 12 percent below January 2009. This was a slight improvement from the 15 percent year-over-year decline in December, but was still a lackluster pace. During January, 1,886 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 2,137 in January 2009. Sales of single-family homes were down by 17 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – rose by 8 percent and sales of condominiums were 4 percent lower than a year ago.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (3-17-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 12, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 1.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 1.7 percent compared with the previous week.”

Housing Wire – “Citi Mortgage Workouts Outnumber Foreclosures 15 to 1 in Q409″ (3-17-10)

“CitiMortgage, the mortgage servicing branch of Citigroup (C: 4.09 +0.99%), worked with nearly 128,000 borrowers in Q409 to avoid foreclosure on almost $19bn in mortgage loans, according to the company. Loan modifications in the distressed asset portfolios outpaced both foreclosures and delinquencies. Modifications increased 17% in Q409 from the previous quarter. For the entire year of 2009, Citi loan modifications increased 47% from 2008.”

Housing Wire – “HOPE NOW Modifies Mortgages Twice as Fast as HAMP” (3-17-10)

“HOPE NOW, an alliance between mortgage service professionals and non-profit counselors, reported 99,499 modifications in January, compared to 50,364 new permanent modifications under the Home Affordable Modification Program (HAMP). January HOPE NOW modification numbers dropped only slightly from 104,423 non-HAMP modifications in December, compared to roughly 35,000 permanent modifications under HAMP in that same month.”

Housing Wire – “Industry Wants Risk Retention Exemption in Dodd Bill” (3-17-10)

“Senator Christopher Dodd (D-CT), chairman of the Senate Banking Committee, unveiled details of a new bill to Congress yesterday that aims to overhaul the financial regulatory system and establish the Consumer Financial Protection Agency (CFPA). Under the Restoring American Financial Stability Act of 2010, financial firms would be required to hold a portion of the credit risk inherent in certain loan products on their books. This ‘risk retention’ is designed to make banks hold an interest in the financial products they create.”

Inman - “Fed to end MBS purchases” (3-17-10)

“Mortgage rates are expected to rise gradually as the Federal Reserve left a key short-term interest rate untouched Tuesday, but said it would wrap up $1.25 trillion in purchases of mortgage-backed securities this month. In a statement, the Federal Open Market Committee said its target for the federal funds overnight rate will remain in the range of zero to 0.25 percent, as inflation is likely to remain ’subdued for some time.’”

Looking Back:

One year ago, over 15,000 homes and apartments were sold in Southern California within a month. The NAHB reported that housing starts increased by 22 percent in February of 2009. Builder confidence was at a record low for over two months.

Tags: , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 3/16/10

Tuesday, March 16th, 2010

Today’s News Synopsis:

MDA DataQuick reports Southern California home sales increased by 0.8 percent since February. According to the Commerce Department, home and apartment construction fell 5.9 percent in February. The Federal Reserve chose to keep interest rates at a record low. The Korpacz Real Estate Investor Survey estimates that the worst of the commercial real estate decline is over.

In The News:

DQNews - “Southern California median price and sales volume up” (3-16-10)

“A total of 15,359 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was virtually unchanged from 15,361 in January, and up 0.8 percent from 15,231 in February 2009, according to MDA DataQuick of San Diego.”

Associated Press – “Housing construction drops 5.9 pct in February” (3-16-10)

“The Commerce Department said Tuesday that construction of new homes and apartments fell 5.9 percent in February to a seasonally adjusted annual rate of 575,000 units, slightly higher than the 570,000 that economists were expecting. January activity was revised up to a pace of 622,000 units, the strongest showing in 14 months.”

San Francisco Chronicle – “Fed holds rates at record lows to foster recovery” (3-16-10)

“The Fed held its target range for its bank lending rate at zero to 0.25 percent, where it’s been since December 2008. In response, commercial banks’ prime lending rate, used to peg rates on certain credit cards and consumer loans, has remained about 3.25 percent — its lowest in decades.”

Housing Wire – “Citi Mortgage Workouts Outnumber Foreclosures 15 to 1 in Q409″ (3-16-10)

“CitiMortgage, the mortgage servicing branch of Citigroup (C: 4.05 +4.11%), worked with nearly 128,000 borrowers in Q409 to avoid foreclosure on almost $19bn in mortgage loans, according to the company. Loan modifications in the distressed asset portfolios outpaced both foreclosures and delinquencies. Modifications increased 17% in Q409 from the previous quarter. For the entire year of 2009, Citi loan modifications increased 47% from 2008.”

Housing Wire – “PWC Director: the Worst May be Over for Commercial Real Estate” (3-16-10)

“Commercial real estate investors expect capitalization rates to stabilize and vacancy rates to level in 2010, according to the quarterly PricewaterhouseCoopers (PWC) Korpacz Real Estate Investor Survey. The news comes as large amounts of capital looks ready to invest in the market, according to a director at the business advisory firm.”

Housing Wire – “Defaults Soar as Foreclosures Slide in Sunny California: ForeclosureRadar” (3-16-10)

“Notice of defaults, the start of the foreclosure process, in California increased 19.7% in February, while the amount of foreclosed homes for sale remained near record levels, according to ForeclosureRadar. At the same time, the number of foreclosures slipped nearly 12%.”

Housing Wire – “Equator Oversees 125,000 Automated Short Sales in Four Months” (3-16-10)

“In a report that may be considered numerical ammunition to the argument that short sales are heating up faster than modifications, Equator announced that it ushered along more than 125,000 short sale transactions, from November to February, since launching an automated short sale platform. Comparatively, the 113 servicers participating in Home Affordable Modification Program (HAMP) conducted 170,000 permanent modifications since its launch in March 2009.”

Looking Back:

One year ago, mortgage fraud reports reached a record high. The county assessor’s office predicted that property taxes would increase for 70 percent of homes in California. The Obama administration made plans to tighten finance rules. The Joint Economic Committee of Congress reported that the total economic cost of foreclosure was approximately $151,000.

Tags: , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 2/12/10

Friday, February 12th, 2010

Today’s News Synopsis:

California Senator Roy Ashburn has proposed new legislation to extend the home buying tax credit. According to CAR, 64 percent of households can afford to buy an entry-level home in California. The Federal Reserve reports that the total U.S. equity increased by nearly $1 trillion from the recession’s nadir in the first quarter of 2009. Statistics from NAR show that existing home sales increased by 13.9% in Q4 of 2009.

In The News:

Recordnet.com – “More tax credits may be on the horizon” (2-12-10)

“A second round of tax credits may become available to 20,000 California home buyers before summer arrives. State Sen. Roy Ashburn, R-Bakersfield, has introduced legislation that would provide $200 million worth of $10,000 tax credits to buyers of both new and resale homes.”

CAR - “Fourth quarter housing affordability” (2-12-10)

“The percentage of households that could afford to buy an entry-level home in California remained at 64 percent in the fourth quarter of 2009, compared with 61 percent (revised) for the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).”

Los Angeles Times – “30-year fixed mortgages dip below 5% again” (2-12-10)

“Average interest rates for traditional 30-year fixed mortgages have fallen below 5% again, Freddie Mac said Thursday. The giant mortgage buyer’s weekly survey, conducted Monday through Wednesday, pegs the average rate nationally at 4.97%, with 0.7% of the loan balance on average paid in upfront charges, or points.”

Washington Post – “Good real estate news: Home equity is rising again” (2-12-10)

“According to the Fed’s most recent “flow of funds” survey, homeowners’ net equity grew by nearly $1 trillion from the recession’s nadir in the first quarter of 2009 through the third quarter. From June 30 to Sept. 30, net equity rose by $418 billion.”

Housing Wire – “Existing Sales Volume Narrows Home Price Declines” (2-12-10)

“Existing-home sales, including single-family and condo, jumped 13.9% to a seasonally adjusted annual rate of 6.03m in the Q409 from 5.29m in the Q309, and are 27.2% above the 4.74m-unit level in the Q408, NAR reported, adding distressed properties accounted for 32% of Q409 transactions, down from 37% a year ago. The improvement comes after sales plummeted in December to close out the year.”

Housing Wire – “Citi Pilots New Foreclosure Alternative Across 6 States” (2-12-10)

“CitiMortgage, the servicing arm of Citigroup (C: 3.18 -0.93%), will pilot a new Foreclosure Alternatives Program that allows distressed borrowers to stay in their homes an additional six months in exchange for the deed.”

Housing Wire – “Commercial Real Estate Woes Will Cost Banks $300bn: COP” (2-12-10)

“Financial institutions could face $300bn in losses related to commercial real estate in 2011 and beyond, putting smaller banks at the most risk, according to a report from the Congressional Oversight Panel (COP). Congress established COP in October 2008 to oversee the spending of the $700bn from the Troubled Asset Relief Program (TARP). Between 2010 and 2014, the Panel found that $1.4trn in commercial real estate will mature, and almost half are currently underwater.”

Bloomberg - “AIG Decides to Keep Unprofitable Mortgage Insurer” (2-12-10)

“American International Group Inc., the insurer divesting assets to repay a government bailout, opted to keep its money-losing U.S. mortgage guarantor after selling Canadian and Israeli subsidiaries of the unit.”

Bloomberg - “Fannie, Freddie Spreads Narrowest in 17 Years: Credit Markets” (2-12-10)

“Traders are driving relative yields on Fannie Mae and Freddie Mac mortgage bonds that most influence the interest rates consumers pay to the lowest in 17 years, speculating cash the companies use to buy delinquent loans will be recycled back into the securities. The difference between yields on Fannie Mae’s current- coupon 30-year securities, which trade closest to face value, and 10-year Treasuries narrowed 0.01 percentage point today to 0.66 percentage point as of 11:10 a.m. in New York, matching the lowest since 1992, according to data compiled by Bloomberg.”

Tags: , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 1/19/10

Tuesday, January 19th, 2010

Today’s News Synopsis:

MDA Dataquick’s monthly report shows that 22,328 homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange County last month. AFIRE conducted a survey in which 51 percent of foreign investors claimed the US provides the best opportunity for capital appreciation. According to the NAHB, builder confidence decreased from last month. Fitch Ratings sees many positive signals for housing and other related industries which may soon lead to a strong recovery.

In The News:

DQNews - “Southland home sales, median price up over last year” (1-19-10)

“A total of 22,328 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 16.4 percent from November’s 19,181, and up 12.1 percent from 19,926 in December 2008, according to MDA DataQuick of San Diego.”

Housing Wire – “New Home Builds Strengthen Though Sector Remains Weak: Fitch” (1-19-10)

“There are more positive signals and developments for housing and related industries than at any time in the past three years, Fitch Ratings analysts wrote in a quarterly outlook report, but despite having fewer competitors, public builders will continue to be challenged and need to maintain tight controls over costs and expenses in 2010.”

Housing Wire – “Washington Federal Earnings Drop 61% in Q409, Driven by Large REO Expenses” (1-19-10)

“Washington Federal, the parent company of Washington Federal Savings, reported $7.9m in earnings for Q409 or $0.07 per share. Earnings dropped 61% from $20.1m or $0.23 per share in Q408, due to higher credit costs including the provision for loan losses and real estate owned (REO) expenses. Those expenses reached $82.5m in Q409, a 128% jump from $46.2m in Q408.”

Housing Wire – “Foreign Investors Revive Optimism in US Real Estate” (1-19-10)

“AFIRE conducted the survey in Q409 among its nearly 200 members. Respondents own more than $842bn of global real estate, including $304bn in the US. In the survey, 51% of respondents said the US provides the best opportunity for capital appreciation, an increase from 37% in 2008, 26% in 2007 and 23% in 2006. It’s the highest positive perception for US real estate since the same number in 2003.”

Housing Wire – “Citi Posts $7.6bn Q4 Loss After TARP Repayment” (1-19-10)

“Citigroup repaid $6.2bn of Troubled Asset Relief Program (TARP) funds during Q409, exiting its loss-sharing agreement with the federal government. Excluding the TARP payment, Citigroup would have lost $1.4bn, or $0.06 per share, in Q409.”

Housing Wire – “Google Teams with Tech Firms for Online Mortgage Search Tool” (1-19-10)

“Search giant Google (GOOG: 587.62 +1.31%) is partnering with mortgage technology companies for the launch of a new feature that allows consumers to search for mortgage products and rates through its site.”

Bloomberg - “Treasury Delay on Home-Equity Debt Imperils Housing” (1-19-10)

“The U.S. Treasury Department has failed to win agreements to get struggling borrowers’ home- equity debt reworked, among the biggest roadblocks to reducing foreclosures that may reach a record 3 million this year. None of the lenders holding a combined $1.05 trillion of the debt has signed contracts requiring participation in the second-mortgage modification plan announced eight months ago. The largest banks remain ‘committed’ to joining, Meg Reilly, a department spokeswoman, said in an e-mail.”

Bloomberg - “Homebuilder Confidence in U.S. Unexpectedly Decreases” (1-19-10)

“The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 15 from 16 the prior month, the Washington-based group said today. Readings below 50 mean most respondents view conditions as poor. The report showed traffic slowed to a 10-month low, indicating the government’s extension and expansion of its first-time buyer program has, so far, not drawn in new demand after propelling total sales to an almost three-year high in November. A projected record 3 million foreclosures this year may also pressure prices, making it more difficult for homebuilders to turn a profit.”

Looking Back:

One year ago, MDA Dataquick reported that statewide home sales from 2008 to 2009 increased by 25.7 percent. Home sales in Southern California increased by 50.5 percent from 2007 to 2009. The Commerce Department reported that home starts had decreased to an annual rate of 605,000.

Tags: , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

« Older Entries