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By Bruce Norris .

The Norris Group Real Estate News Roundup 9/6/12

Thursday, September 6th, 2012

Today’s News Synopsis:

Mortgage rates decreased again slightly for the second week in a row.  30-year rates are at 3.55%, while 15-year rates are at 2.86%.  However, with this has come a recovery in home prices with a 1.2% increase in the second quarter.  Jobless claims decreased to 365,000 last week.


In The News:

Housing Wire – “San Bernardino housing market improves without eminent domain” (9-5-12)

“The San Bernardino County, Calif. housing market showed signs of improvement in August even without a controversial eminent domain plan, according to Clear Capital.”

Bloomberg – “Private-Equity Firms Drive Up Select-Service Hotel Prices” (9-6-12)

“Private-equity firms including Starwood Capital Group LLC and Clearview Capital LLC have been the top buyers of select-service hotels this year, pushing up prices for the properties, Jones Lang LaSalle Hotels said.”

Realty Times – “Home Prices Rebounding With Low Mortgage Rates” (9-6-12)

“Over the course of several months, home prices in many markets have been rebounding with the consistent level of low mortgage rates.”

DS News – “First-Time Unemployment Claims in Surprise Drop” (9-6-12)

“First-time claims for unemployment fell to 365,000 for the week ended September 1, the Labor Department reported Thursday, surprising economists who had expected a smaller decline to 370,000.”

Inman – “Mortgage rates down again” (9-6-12)

“Mortgage rates eased for a second week in a row on mixed economic news, but could be poised for a rebound after the European Central Bank announced a new round of bond purchases today that undermined prices of U.S. Treasurys, pushing up yields.”

Housing Wire – “Rural affordable housing struggles with oil and gas boom” (9-6-12)

“Waves of highly paid oil and gas drilling employees into rural areas is causing strain on local governments to provide affordable housing for locals who can no longer afford skyrocketing rents, according to a government study released Thursday.”

Los Angeles Times – “Six years after crash, builders of new homes enjoy an upswing” (9-6-12)

“After six long years, the home-building sector is back in business: sales of newly built residential homes are climbing strongly this year, according to a report by John Burns Real Estate Consulting.”

Housing Wire – “Redefaults on private modifications cut by more than half” (9-6-12)

“The percentage of mortgages that redefaulted within six months after receiving a private modification fell by to the lowest level since the industry began reporting the data in 2009.”

DS News – “CMBS Delinquency Rate Falls Sharply After Increases: Trepp “ (9-6-12)

“The CMBS delinquency rate made a steep drop in August, marking the first fall since February 2012, according to Trepp.”

Hard Money Loan Closed

San Bernardino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $96,000 on a 4 bedroom, 2 bathroom home appraised for $160,000.

 

Bruce Norris of The Norris Group will be at the Real Estate Investment Expo in Santa Clara Saturday, September 8, 2012.

Bruce Norris of The Norris Group will be at the Los Angeles Real Estate Investors Association on Tuesday, September 11, 2012.

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

Looking Back:

The Federal Housing Finance Agency, who acted as regulator for Fannie Mae and Freddie Mac, sued 17 banks in an attempt to recover billions of dollars worth of money lost due to mismanagement of the money by the bank.  However, in another story, FBR Capital Markets said the plan would not work and that it would only risk the banks losing more capital.  Bloomberg reported that retailers were planning to open more stores in response to the lower rents.

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 8/30/12

Thursday, August 30th, 2012

Today’s News Synopsis:

Mortgage rates decreased for the first time after five weeks; 30-year rates are now at 3.59% and 15-year are at 2.86%.  Unemployment claims remained at 374,000 for the week ended August 25, which is higher than economists had expected.  The Bureau of Economic Analysis reported consumer spending increased more than income in July.  Consumer spending increased by $46 billion, while personal income increased by only $42.3 billion.


In The News:

DS News – “Foreclosure-Related Sales Prices Up as Inventory Shrinks: RealtyTrac ” (8-30-12)

“Prices went up for foreclosure-related sales on a quarterly and yearly basis, with the annual increase marking the first rise in two years, according to RealtyTrac’s Q2 foreclosure sales report.”

Bloomberg – “Distressed Home Prices Jump With Inventory Shrinking” (8-30-12)

“Demand for distressed properties is driving up prices for the first time in two years as investors from Blackstone Group LP (BX) to Colony Capital LLC chase shrinking inventory.”

Mortgage Bankers Association – “Commercial and Multifamily Mortgage Delinquency Rates Continue to Drop for Banks, Rise for CMBS in Second Quarter of 2012″ (8-30-12)

“Commercial and multifamily mortgage delinquency rates continued to drop for banks and rise for commercial mortgage backed securities (CMBS) during the second quarter of 2012. Delinquency rates also declined for Fannie Mae during the second quarter, and increased by 0.01 percentage points for life companies and 0.04 percentage points for Freddie Mac according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.”

Realty Times – “Unhappy Sellers, Dissatisfied Buyers Lower Ratings Boom On Real Estate Companies” (8-30-12)

“Sellers don’t like the prices they are forced to tag onto their listings, buyers think the condition of homes for sale stink, and real estate companies are left holding the bag.”

Bloomberg- “U.S. Mortgage Rates Decline for First Time in Five Weeks” (8-30-12)

“U.S. mortgages rates fell for the first time in five weeks, lowering borrowing costs for homebuyers amid signs of a real estate recovery.”

DS News – “Initial Jobless Claims Higher Than Expected” (8-30-12)

“First-time claims for unemployment were unchanged at 374,000 for the week ended August 25, the Labor Department reported Thursday after revising upward by 2,000 the prior week’s originally reported 372,000 claims.”

Inman – “ZipRealty partners with mortgage lender” (8-30-12)

“Loan officers with mortgage bank New American Mortgage will be present in all ZipRealty company-owned offices in 20 markets around the country under the terms of a strategic alliance between the two companies announced today.”

DS News – “Spending Growth Tops Income in July” (8-30-12)

“Personal income rose $42.3 billion in July, but consumer spending increased $46.0 billion, the Bureau of Economic Analysis reported Thursday.”

Mortgage Bankers Association- “MBA: Second Quarter Independent Mortgage Banker Profits Increase” (8-30-12)

“Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $2,152 on each loan they originated in the second quarter of 2012, up from $1,654 per loan in the first quarter, the Mortgage Bankers Association (MBA) reported today.”

Hard Money Loan Closed

Apple Valley, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $54,000 on a 3 bedroom, 2 bathroom home appraised for $91,000.

 

Bruce Norris of The Norris Group will be at the Los Angeles Commercial Real Estate Forum today, August 30, 2012.

Bruce Norris of The Norris Group will be at the Real Estate Investment Expo in Santa Clara Saturday, September 8, 2012.

Bruce Norris of The Norris Group will be at the Los Angeles Real Estate Investors Association on Tuesday, September 11, 2012.

Looking Back:

CoreLogic was in talks to possibly sell the company in order to improve their shareholders’ value and position.  Bloomberg reported signs of a possible market recovery after seeing housing prices decrease at a slower pace from the previous year.  According to the latest Case-Shiller Index, home prices showed an improvement in the second quarter of 2011 compared to the first, but had still not improved from the prior year.

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 7/17/12

Tuesday, July 17th, 2012

Today’s News Synopsis:

Inventory in San Diego and as far up as San Francisco decreased last month, leading to a 19% year-over-year decrease in the number of homes for sale.  Builder confidence increased this month by six points to 35.  Standard and Poor’s Experian Consumer Credit Default Indices showed a decrease in mortgage defaults to 1.52% from 1.62%.


In The News:

DS News – “Walmart’s Positive Impact on Home Prices: NBER” (7-17-12)

“Despite Walmart’s ubiquity and popularity, the retailer faces local opposition when attempting to build a new store because opponents argue that the store, known for low prices, also lowers home values in the area.”

Bloomberg – “For-Sale Homes Decline in a Sign of U.S. Housing Bottom” (7-17-12)

“The number of homes for sale dropped in the U.S. last month, led by shrinking inventories in California from San Francisco to San Diego, as buyers returned to one of the country’s worst-hit housing markets.”

NAHB – “Builder Confidence Rises Six Points in July” (7-17-12)

“Builder confidence in the market for newly built, single-family homes rose six points to 35 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for July, released today. This is the largest one-month gain recorded by the index in nearly a decade, and brings the HMI to its highest point since March of 2007.”

DS News – “Mortgage Defaults Down in June, Index Reveals” (7-17-12)

“An already positive trend in mortgage defaults continued through the month of June, according to data released Tuesday in the S&P/Experian Consumer Credit Default Indices.”

Bloomberg – “CMBS Leverage Most Since ’07 as Standards Loosen: Credit Markets” (7-17-12)

“Landlords are piling the most debt onto commercial properties in five years as Wall Street banks bundle the loans into bonds to meet rising demand from investors seeking high yields amid record-low interest rates.”

Realty Times – “Scams Target Real Estate Agents, Lawyers” (7-17-12)

“Recently we published a story in our magazine about a real estate scam in which someone assumed the identity of a real estate agent and offered one of her listed properties for rent online.”

CNN Money – “Bernanke: Libor system is structurally flawed” (7-17-12)

“Federal Reserve Chairman Ben Bernanke cast doubt Tuesday that a critical financial rate used by banks to set interest rates for loans is reliable.”

Housing Wire – “No better or worse: Mortgage borrowers falling behind flattens out” (7-17-12)

“The amount of mortgage borrowers falling behind on payments flattened out since dropping earlier in the year.”

DS News – “Homeownership Rate Likely to Continue Falling: Capital Economics” (7-17-12)

“For the first quarter of 2012, the Census Bureau reported the homeownership rate dropped to 65.4 percent, which was a yearly (66.4 percent) and quarterly drop (66.0 percent).”

Hard Money Loan Closed

San Diego, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $162,000 on a 4 bedroom, 2 bathroom home appraised for $270,000.

 

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

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

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the InvestClub for Women in Orange County Wednesday, September 19, 2012.

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

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The Norris Group Real Estate News Roundup 12/06/11

Tuesday, December 6th, 2011

Today’s News Synopsis:

According to Bloomberg news, Bannk of America reached a settlment with investors from whom they faced a lawsuit, agreeing to pay $315 million.  Pending home sales increased in October according to the National Association of Realtors.  Fifteen euro currency union members will be reviewed by Standard & Poors to see if they will be downgraded.

In The News:

Housing Wire - “Regulators still buried by risk retention input” (12-6-11)

“Federal regulators are still working on the risk-retention rule after issuing a proposal in April, and lawmakers are growing impatient.”

Bloomberg - “BofA to Settle Mortgage Securities Action for $315 Million” (12-6-11)

“Bank of America Corp. (BAC) reached a $315 million settlement with a group of investors who sued its Merrill Lynch unit claiming they were misled about mortgage-backed securities, according to a court filing.”

DS News - “Fannie Mae: Market Will Take Five More Years to Adjust” (12-6-11)

“We are five years through a 10-year adjustment process,” said Fannie Mae chief economist Doug Duncan at the Five Star MPact Mortgage Conference and Expo Tuesday morning.”

Realty Times - “Pending Sales Rise” (12-6-11)

“Pent-up demand could finally be working its way through the market. Pending home sales rose sharply in October according to the National Association of Realtors.”

CNN Money - “S&P puts 15 eurozone governments on notice” (12-6-11)

“Standard & Poor’s said Monday that it placed 15 members of the euro currency union on review for a possible downgrade as the debt crisis in the eurozone continues to worsen.”

Mortgage Bankers Association - “Modest Changes in Commercial/Multifamily Mortgage Delinquency Rates During Third Quarter” (12-6-11)

“During the third quarter, delinquency rates declined for commercial and multifamily mortgages held by banks and in commercial mortgage backed securities (CMBS). Delinquency rates increased for loans held by life insurance companies
and held or insured by Fannie Mae and Freddie Mac but are still at low levels, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.”

Los Angeles Times - “California, Nevada team up to investigate foreclosure fraud”  (12-6-11)

“California and Nevada, two states at the heart of the nation’s housing crisis, will join forces to   investigate foreclosure fraud and other types of mortgage improprieties.  The agreement to share resources and work jointly is the latest sign that the nation’s state   attorneys general are pushing to put themselves on the vanguard of cracking down on bank practices   in the housing crisis: from the selling of mortgage backed securities to conducting improper   foreclosures”

Inman - “Room to roam: Top 10 U.S. states with largest lot sizes” (12-6-11)

“If you’re looking for a house with a supersized backyard, you’re best bet is to search in the Eastern U.S.  Only one Western state — Montana at No. 2, with a median lot size of 73,616 square feet — ranked in the top 10 for states with the largest median lot sizes for sale, based on properties for sale at real estate search site Realtor.com in September.”

San Francisco Chronicle - “Fed Uses ‘Dollar Rolls’ in Mortgage-Bond Program Shift” (12-6-11)

“The Federal Reserve Bank of New York entered into paired contracts to buy and  sell mortgage securities for the first time since it began reinvesting in the  debt in October, in a move that may reduce funding costs.”

Looking Back:

The Federal Reserve expected housing starts to reach 600,000 by the end of 2010. Fannie Mae  suspended foreclosure evictions from Dec. 20 through Jan. 3, 2011. HUD representative Shaun Donovan claimed the Homeless Prevention and Rapid Re-housing Program prevented or ended homelessness for 750,000 Americans.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 10/26/11

Wednesday, October 26th, 2011

Today’s News Synopsis:

A big story in the news is the sale of new homes increased 5.7% last month, the highest they have been in 5 months.  According to the latest Mortgage Bankers Association survey, mortgage applications are up almost 5% from last week.  According to The Wall Street Journal, both the values and rent for apartments are on the rise.

In The News:

Housing Wire – “HARP plan keeps mortgage insurers in play” (10-26-11)

“The Mortgage Insurance Companies of America is supporting the revised Home Affordable Refinance Program as a step in the right direction since it aims to keep borrowers current while reducing default claims.”

DS News – “S&P/Experian: Default Rates Rise for First and Second Mortgages” (10-26-11)

“Default rates for both first and second mortgages increased during the month of September, according to the S&P/Experian Consumer Credit Default Indices.”

NAHB - “New-Home Sales Rise 5.7 Percent in September” (10-26-11)

“Sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 313,000 units in September, according to newly released data from the U.S. Commerce Department. This marks the fastest pace of new-home sales in the past five months.”

Mortgage Bankers Association - “Mortgage Applications Increase in Latest MBA Weekly Survey” (10-26-11)

“Mortgage applications increased 4.9 percent from one week earlier, which included the Columbus Day holiday, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week
ending October 21, 2011.”

Housing Wire - “Freddie Mac: Single-family delinquencies up slightly in September” (10-26-11)

“The rate of seriously delinquent mortgages held by Freddie Mac inched higher in September to 3.51% from 3.49% in August, the government-sponsored enterprise said Wednesday.”

Los Angeles Times - “U.S. recession fears fade as economy shows more strength” (10-26-11)

“The dreaded “double-dip” still is a no-show.  When the government on Thursday issues its first estimate of third-quarter U.S. gross domestic product, the report is expected to show a sharp acceleration in economic growth from the first half.  Real GDP grew at an annualized rate of 2.5% in the three months ended Sept. 30, according to the average estimate of economists in a Bloomberg News survey.”

Wall Street Journal - “Apartment Values Rise, as Do Rents” (10-26-11)

“Strong growth of rents and occupancy levels of rental apartments have pushed some building values to record levels as Americans shift away from home ownership.  While concerns about the economy are cooling the market for most other types of commercial real estate, apartment rents and occupancies continue to be boosted by demand from millions of people who are victims of foreclosure or are unwilling or unable to buy their own homes.”

DS News - “Freddie Mac’s Chief Executive to Resign” (10-26-11)

“Freddie Mac CEO Charles E. Haldeman Jr. has informed the GSE’s board of directors that he plans to step down “some time in the coming year,” according to a statement from Freddie’s regulator.”

Housing Wire – “Special servicers resolve $63.5 billion of distressed CMBS” (10-26-11)

“Special servicers resolved more than $63.5 billion in distressed commercial mortgage-backed securities from January 2010 to June 2011, Fitch Ratings said in a report Wednesday.”

Looking Back:

The MBA estimateed total originations in 2011 would be $400 billion less than the total for 2010. According to MDA DataQuick, 83,261 Notices of Default were recorded at California county recorder offices during the 3rd quarter of 2010. Lender Processing Services released a new valuation model that brought listing and pending sale data into the equation. The FHFA claimed U.S. house prices increased 0.4% in August 2010.

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 10/12/11

Wednesday, October 12th, 2011

Today’s News Synopsis:

According to Housing Wire, mortgage applications went up over 1% with the incease of purchase activity and refinancing.  DS News reported the Supreme Court will not be reviewing its case to reconsider the ruling in its recent court case.  According to Zillow’s latest data report, home values continue to remain the same as foreclosures begin to slow.

In The News:

Housing Wire - “Mortgage applications increase 1.3%” (10-12-11)

“Mortgage application filings increased 1.3% this past week as refinance and purchase activity picked up, an industry trade group said Wednesday.  The Mortgage Bankers Association reported that the market
composite index – a measure of loan application volume – jumped 1.3% on a seasonally adjusted basis from last week.”

Realty Times - “Mixed News Keeps Low Mortgage Rates Stable” (10-12-11)

“For the past week, mixed economic news that continues to lead the headlines has helped to keep low mortgage rates stable. Financial troubles in Europe has left investors busy each day waiting to see if Greece will default or a rescue plan will be implemented. Here in the U.S., even a negative report that is not considered terribly bad is spreading optimism to the markets making any predictions unreliable.”

DS News - “Supreme Court Declines to Review MERS Challenge” (10-12-11)

“The United States Supreme Court has denied a writ of certiorari in a case involving MERS, refusing to reconsider a California court ruling, which upheld MERS’ right to initiate foreclosures.”

Los Angeles Times – “Weak demand at Treasury note sale drives rates up” (10-12-11)

“The U.S. Treasury saw weak demand at its auction of new 10-year notes, a sign that investors’ hunger for government bonds as a haven continues to ebb — at least at current low interest rates.”

Inman - “Company offers real estate agent directory app on Facebook” (10-12-11)

“N-Play, a company that offers a suite of real estate-related applications on Facebook, has rolled out a real estate agent directory app, the company announced last week.”

Realtor Magazine - “Zillow: Home Values Hold Steady, Foreclosures Slow” (10-12-11)

“Home prices mostly held flat in August, increasing a modest 0.1 percent from July to August, according to Zillow’s latest Home Value Index.”

DS News - “Fitch: Special Servicers Mitigate CMBS Losses” (10-12-11)

“The number of commercial mortgage backed securities (CMBS) resolved by special servicers in 2010 was more than four times the amount in 2009, according to Fitch’s CMBS loss study released Wednesday.”

Housing Wire – “Senators press for mass mortgage refi plan” (10-12-11)

“A group of 16 senators sent a letter to regulators Tuesday, pressing for a plan to boost mortgage refinancing for more homeowners as soon as possible. Such a plan is being widely discussed admittedly, and now the lawmakers are ready to
see some action.”

Looking Back:

Multiple states were cooperating in an investigation to determine whether or not lenders violated foreclosure laws when seizing houses from delinquent borrowers. The U.S. was the second largest holder of U.S. debt. A survey from the National Association for Business Economics showed that economists expected gross domestic product would increase 2.6% in 2010 and 2011. According to a Thomson Reuters survey, 63% of potential home buyers were discouraged from buying a home because of the the current economic conditions.

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 7/19/11

Tuesday, July 19th, 2011

Today’s News Synopsis:

In a big storym, the construction of new homes increased 14.6% in the month of June.  Unfortunately, mortgages are down to a new low in four years with a 19% decrease in the second quarter.  A new law, SB 458, was signed into law on Friday and will bring changes to short sales. 

In The News:

Los Angeles Times - “California foreclosure starts fall to lowest level in four years” (7-19-11)

“The number of Californians entering foreclosure dropped steeply in the second quarter to hit its lowest level since 2007, a sign the foreclosure crisis in the Golden State could be easing amid a more stable housing market and increased scrutiny from regulators.”

Realty Times - “Top Remodeling Projects” (7-19-11)

“Remodeling Magazine’s latest Cost Versus Value Report 2010-2011 has been released and it revealed that the recent declines in housing are having substantial effects on the remodeling market.”

DS News - “California Law Offers Deficiency Protections to Short Sellers” (7-19-11)

“A new California law bars junior lien holders from pursuing borrowers to collect outstanding loan balances after a short sale has been completed.”

NAHB - “Housing Production Regains Some Strength in June” (7-19-11)

“Nationwide housing starts rose 14.6 percent to a seasonally adjusted annual rate of 629,000 units in June, according to figures released by the U.S. Commerce Department today. This was the best pace of housing production since the beginning of the year, and was attributable to significant gains registered in both the single-family and multifamily segments as well as every region of the country.”

Bloomberg - “California Mortgage Defaults Decline 19% to Lowest Level in Four Years” (7-19-11)

“Home-mortgage defaults in California fell 19 percent in the second quarter from a year earlier to the lowest in four years as lenders changed foreclosure policies and price declines slowed, according to DataQuick.”

RisMedia - “RE/MAX Reports Inventories are Sinking” (7-19-11)

“Inventories in 53 markets surveyed last month by RE/MAX are down nearly fifteen percent from a year ago, when the tax credit boom was winding down, another indication that housing markets have recovered from the tax credit-induced sales boom and the bust that followed it.”

Housing Wire - “More firms bet on incoming wave of REO” (7-19-11)

“The past few weeks of acquisitions and deals among REO asset managers shows more bets are being made that a long-awaited supply of these properties may finally be hitting the market.”

Bloomberg - “Office Prices in California’s Subprime Center Leapfrog Real Estate Rebound” (7-19-11)

“Investors are bidding up prices for top-tier office buildings in Orange County, California, even as vacancies stand at almost 20 percent after the collapse of the
subprime-mortgage industry that once made the region its home.”

Housing Wire - “Moody’s: CMBS delinquency rate falls to 9.02% for June” (7-19-11)

“The rate of delinquent loans in commercial mortgage-backed securities declined in June but remains higher than 9%, as it has for all of 2011, according to Moody’s Investors Service.”

DS News - “Bank of America to Scale Back Servicing Portfolio” (7-19-11)

“Bank of America says it is looking to downsize its mortgage servicing portfolio.”

Looking Back:

The NAHB reported that builder confidence in the singe-family home market decreased to the lowest point in a year. Builders began work on 580,000 houses the previous month, according to the Commerce Department. A survey from REMAX showed that existing home sales increased in June 2010 by 5.6% in comparison to the same month in 2009. The Bay Area lost more than 10,000 jobs in June of 2010.

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 6/8/11

Wednesday, June 8th, 2011

Today’s News Synopsis:

Inman news reported that home prices actually rose in April and May after bottoming out the month before, despite reports of double-dipping.  Housing Wire says the Treasury Department should not expect the money back it paid to Fannie Mae and Freddie Mac.  Mortgage applications saw a decrease of .4% according to the Mortgage Bankers Association, and the value of homes fell 8% according to a report by Zillow.

In The News:

Inman - “Expect volatility in real estate recovery” (6-8-11)

“Despite a recent report that U.S. home prices “double dipped” in the first quarter, prices bottomed out in March and saw seasonal rises in April and May, according to real estate data company Altos Research.”

Housing Wire - “Fannie, Freddie may never pay back the government” (6-8-11)

“The Treasury Department paid $164.4 billion to Fannie Mae and Freddie Mac since placing them into conservatorship in September 2008, but that money may never be paid back. ”

RisMedia - “HUD Provides $15 Million in Rental Assistance to Help Nearly 2,000 Families Stay Together” (6-8-11)

“In 2009, an estimated 423,773 children lived in foster care in the U.S., as case workers helped to reunite them with their families or primary caregivers. Recently, the U.S. Department of Housing and Urban Development (HUD) announced nearly $15 million to help public housing authorities reunite foster children with their parents or prevent them from ever entering the foster care system.”

Inman - “Report: Real estate market won’t hit bottom this year” (6-8-11)

“Home values fell 8 percent year-over-year in April, according to a report from property search and valuation site Zillow.”

Housing Wire - “Fixed-rate mortgages fall to 6-month lows: LendingTree” (6-8-11)

“Lenders in the LendingTree Network saw rates on 30- and 15-year, fixed-rate mortgages plunge to a six-month low this past week, LendingTree said in a report Wednesday.”

Mortgage Bankers Association - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (6-8-11)

“Mortgage applications decreased 0.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 3, 2011. This week’s results include an adjustment to account for the Memorial Day holiday.”

The Wall Street Journal - “Office Owners Seek to Cash In” (6-8-11)

“Owners of big-name office buildings in some U.S. cities are racing to put them up for sale to exploit surging prices before it is too late.”

Mortgage Bankers Association - “Commercial/Multifamily Mortgage Delinquency Rates Mixed in First Quarter” (6-8-11)

“The delinquency rate for loans held in commercial mortgage-backed securities (CMBS) reached the highest level since the series began in 1997, but the climb was slower than in recent quarters. Delinquency rates for other groups remain below levels seen in the last major real estate downturn during the early 1990s — some by large margins.”

Looking Back:

A survey from the NFCC showed that only 23 percent of Americans considered strategic default to be acceptable when underwater on a mortgage. Starting June 8, 2010, Real Estate Disposition began auctioning more than 350 bank-owned foreclosures in California. According to IAS, national home prices were up 0.9% in April from March of 2010. An executive from RealtyTrac believeed U.S. foreclosure activity would not stabilize until late this year.

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 5/23/11

Monday, May 23rd, 2011

Today’s News Synopsis:

The FBI said property crimes have dropped 2.5% in the West. A new study shows that homeowners at least two-months delinquent on their mortgage are more likely to strategically default. The Treasury Department released a free online calculator that provides borrowers with an estimate of whether or not they qualify for HAMP. Homeowner insurance premiums are increasing across multiple states.

In The News:

Los Angeles Times – “California creating mortgage fraud task force” (5-23-11)

“California Atty. Gen. Kamala Harris, saying that years of unscrupulous lending still haunts the state, is creating a 25-person task force to target mortgage fraud of any size — from small operations that preyed on troubled borrowers to corporations that sold risky loans as safe investments.”

Housing Wire – “FBI: Property crimes down across the board in 2010″ (5-23-11)

“Property crimes decreased in each region of the country with a 3.8% drop in the South; a 2.7% decline in the Midwest; a 2.5% reduction in the West; and a 0.5% dip in the Northeast. The FBI said property crimes fell the deepest in cities with populations of more than 500,000 and less than 1 million with a 4% drop.”

Housing Wire – “Watch for strategic defaulters, economists suggest after studying Countrywide data” (5-23-11)

“Homeowners at least two-months delinquent on their mortgage may be more apt to strategically default if offered a mortgage modification despite the damage to their credit.”

Bloomberg – “U.S. Commercial Real Estate Prices Decline to Post-Crash Low, Moody’s Says” (5-23-11)

“The Moody’s/REAL Commercial Property Price Index dropped 4.2 percent from February and is now 47 percent below the peak of October 2007, Moody’s said in a statement today.”

Dr. Housing Bubble – “FHA insured loans now cross a giant tipping point exceeding $1 trillion in book value at risk.” (5-22-11)

“The FHA total book value of loans has soared to over $1 trillion. These are loans made with 3.5 percent down payments and carry laxer lending standards. So it should be no surprise that defaults for FHA insured loans are hitting record levels.”

Housing Wire – “CMBS issuance to top $40 billion in 2011″ (5-23-11)

“Commercial mortgage-backed securities are gaining steam with $9 billion issued in the first four months of the year and $40 billion expected by the end of 2011, according to Jones Lang LaSalle”

Housing Wire – “Treasury puts HAMP eligibility calculator online” (5-23-11)

“The Treasury Department on Monday released a free calculator online that will provide borrowers an estimate on whether or not they qualify for the Home Affordable Modification Program.”

Wall Street Journal – “Homeowner’s Insurance Premiums Are Rising” (5-22-11)

“After five years of relatively stable premiums, some of the country’s biggest insurers have raised rates or say they plan to. Premiums vary by state, but last year, State Farm Mutual Automobile Insurance says it increased homeowners rates 7.3% on average and, this year, has raised them in 18 states, including a few by more than 7%. It cut rates in just two states.”

Orange County Register – “Homebuilders ‘coming out of hibernation’” (5-23-11)

“At least 28 new housing developments either have opened since the fall or will be open by next fall, a Register survey of local builders shows. Those projects include more than 3,000 houses, townhomes and duplexes. By comparison, fewer than 2,000 building permits were issued for such homes in the same period in 2009-10, and only around 1,600 were issued in 2008-09.”

Orange County Criminal Attorneys Blog – “SCOTUS: California Must Release More Than 1/4 of Prisoners” (5-23-11)

“California must address its overcrowding crisis by releasing over 1/4 of its prison imnate population, according to the Los Angeles’ Times Supreme Court orders California to release tens of thousands of prison inmates. In a 5-4 decision written by Justice Kennedy, the SCOTUS has upheld a federal court order that called for releasing 38,000 to 46,000 prisoners.”

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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224-TNG Radio – Ray McLaine 5-6-11

Friday, May 6th, 2011

Ray McLaine

President of the Commercial REO Brokers Association


(Full Bio)

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This week Bruce is joined again by Ray McLaine. Ray is the founder and president of the Commercial REO Brokers Association. Ray began his career in commercial real estate 30 years ago. He has developed apartment complexes, condo projects and a mini warehouse.

Commercial real estate tends to follow the residential market. In 2006, many speculators invested in commercial real estate as prices began to rise. Many residential investors began migrating into the multifamily market.

During the commercial boom, one of the leading asset management companies was offering loans up to 95% of a property’s value. Many of these loans operated under stated income, which allowed many people to easily qualify for loans. Most of these loans are now coming back.

A mortgage backed security develops when real estate loans are sold to a bank. The bank then groups those loans into $100 million pools. The interest from those pools is then collected and sold. Commercial mortgage backed securities (CMBS) are the same thing as mortgage backed securities (MBS), except CMBS is for commercial loans.

Insurance companies are typically more conservative when loaning. During the boom, the insurance companies wanted 20 to 30% down, they only wanted properties from prime locations, and they wanted a debt to service ratio of about 125%.

One thing that the CMBS market did, which the banks did not also do, was they lowered the debt to service ratio to 100%. In some cases, loan pools were created to help people carry loans with a bad debt to service ratio until a later, more preferable time. Unfortunately for the people who did that, the preferable time period never came around. The market collapsed and their loans went into default.

Most banks offered 25% financing for non-owner occupant properties, but some of the community banks went up to 80%, and the CMBS market went up to 85%.

Today, the CMBS market is coming back. 2007 was the peak for the commercial market. The MBS industry grew to $260 billion in 2007. If you add 20% to that, you will have the total transaction value of the MBS industry at that time. In 2007, CMBS accounted for 80% of the loans in the MBS business. In 2008, after the bubble popped, about $100 billion in transactions were dropped. In 2009, the market had almost completely stopped. There were only $2.9 billion in CMBS mortgages in 2009. There was an 80 to 95% drop in transaction volume in 2009 from the major companies in the business. Most of the little companies just went out of business.

This year, it has been projected that CMBS sales will increase from $12 billion to $50 billion. The market is coming back on a steep curve.

You cannot sell trashy properties in the CMBS market today. Most mortgages in the CMBS market are similar to the subprime loans in the residential market. Most of the CMBS loans are adjustable for 10 years.

Bruce Norris recently bought a commercial property for $317,000, which was worth $1 million in 2006. During the peak, you could have taken on a loan for $950,000 for that property.

If a borrower is in need of a loan modification, a special servicer is assigned to the borrower to determine what is in the borrower’s best interest.

At the end of 2009, when it was obvious that the CMBS market was crashing, many people defaulted. The banks were in big trouble when this occurred, so they asked the regulators at the FDIC for help. At that time, the FDIC had a regulation requiring banks to make a report of all loans that are over 60 days delinquent. During the crash, the FDIC changed that regulation, so that banks were allowed to not report delinquent loans for 6 months. Also, if the seriously delinquent loans were fixed during the six month period, then they were rewarded by not having to report the delinquency at all. At first, the banks were not allowed to give extensions to upside-down loans, but the banks did it anyway. When the regulators started checking on the banks, they discovered the banks had been making these extensions against the will of the FDIC, but the regulators did not feel there was a good solution to the problem, so the allowed the banks to continue extending upside-down loans.

Ray’s website is CREOBA.com

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

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