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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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The Norris Group Real Estate News Roundup 5/4/11

Wednesday, May 4th, 2011

Today’s News Synopsis:

A survey shows that 45% of homebuyers think they should always buy mortgage discount points. Freddie Mac ended the first three months of the year with a positive net worth of $1.2 billion, and will need no additional funding from Treasury for the first quarter. Automatic Data Processing Inc said the private sector added 179,000 jobs in April.

In The News:

Mortgage Bankers Association – “Latest MBA Weekly Survey Shows Increase in Mortgage Applications, Driven by Refinances” (5-4-11)

“Mortgage applications increased 4.0 percent from one week earlier, according to data from the Mortgage Bankers Association”

Washington Post – “House GOP set to move ahead with legislation to limit new consumer bureau” (5-4-11)

“The political tug of war over the new Consumer Financial Protection Bureau will enter another round Wednesday, when House Republicans forge ahead with legislation aimed at curbing the fledgling watchdog’s powers even before it officially opens its doors in July.”

Sign On San Diego – “Quiz: Homebuyers lack mortgage know-how” (5-4-11)

“Forty-five percent of those surveyed think they should always buy mortgage discount points, which are prepaid interest. The fact is, the decision hinges on how long you plan to own the property. It would not be worthwhile to buy them in certain cases.”

Bloomberg - “U.S. May Pursue More Lenders After Suing Deutsche Bank on Faulty Mortgages” (5-4-11)

“The U.S. Department of Justice may pursue claims against other lenders after suing Deutsche Bank AG for more than $1 billion, alleging the firm lied while arranging federal insurance on faulty mortgages.”

DSNews - “Trepp Reports Jump in CMBS Delinquencies to New Record-High” (5-4-11)

“The New York-based research firm says the percentage of loans 30-plus days delinquent, in foreclosure, or REO climbed 23 basis points last month to hit 9.65 percent. That number is, once again, the highest reading in the history of the CMBS market, according to Trepp.”

DSNews - “Freddie Mac Turns $676M Profit in Q1, Needs No Taxpayer Funding” (5-4-11)

“The nation’s second largest mortgage company reported Wednesday that it pulled in net income of $676 million during the first three months of this year. Freddie Mac closed the quarter with positive net worth of $1.2 billion. As a result, no additional funding from Treasury was required for the first quarter of 2011.”

Housing Wire – “Private sector added 179,000 jobs in April” (5-4-11)

“Automatic Data Processing Inc. reported the private sector tacked on 179,000 jobs last month. The payroll giant conducts the monthly survey, which excludes federal jobs, in conjunction with Macroeconomic Advisers.”

Housing Wire – “FDIC study blames mortgage servicing mess on big banks” (5-4-11)

“The Federal Deposit Insurance Corp. took a look into the foreclosure operations at the largest mortgage servicers and found significant breakdowns at almost every stage of the process. However, these issues are largely isolated to the servicers that hold the largest share of the mortgage finance business.”

Housing Wire – “Revival in commercial real estate, mortgage finance needs more jobs” (5-4-11)

“absent strong improvement in U.S. job markets and demand for business space, the nation’s commercial real estate sector will likely continue its slow, bifurcated recovery over the coming year — with top urban markets outpacing recovery in secondary, non-gateway markets.”

Looking Back:

One year ago, pending home sales increased by 5.3 percent in February. Statistics from PMI indicated the home price reduction risk was significantly decreasing across most U.S. regions. The percentage of loans 30+ days delinquent, in foreclosure or real estate owned (REO) status increased to 8.02 percent in March 2010. McGraw-Hill reports the residential sector is up 35% in the first three months of 2010 compared to the same time one year ago.

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 4/8/11

Friday, April 8th, 2011

Sources:
Southern California rents are likely to remain flat, study says
32 million people struggling to pay mortgage
Home prices double-dip in West but flatten nationally: Clear Capital
Home prices fall for seventh month in February
U.S.: World’s 7th worst housing market
Possible Federal Government Shutdown
Federal shutdown would hit California hard
Analysts say FHA shutdown possible without budget consensus
Tax rule that would’ve hurt small business is repealed
Home Builders Applaud Congressional Passage of 1099 Repeal
The 2011 Community Preference Survey
Mortgage aid offered to those who cashed out equity

Today’s News Synopsis:

The government has yet to agree on a budget. If they cannot agree on a budget before Monday, many jobs will be put on hold, and many government sponsored programs will temporarily stop functioning. CMBS delinquencies fell to 8.74% in March, according to Fitch. The due date on taxes for property owners has been extended for 1 day.

In The News:

NAR - “What a Government Shutdown Means for REALTORS®” (4-5-11)

“If legislation providing for funding is not signed into law to extend funding after April 8, the federal government could shut down. This means many, but not all, government programs, including some that impact federal housing and mortgage programs, could grind to a halt as early as April 9, 2011.”

Los Angeles Times – “Home lenders shed workers as mortgage rates climb” (4-5-11)

“the nation’s No. 1 mortgage lender, has handed pink slips to about 1,900 workers who had processed loans generated both by Wells’ mortgage unit and by independent brokers, a spokesman said Thursday. About 230 of the positions were in California, said Jason D. Menke, a spokesman for Wells Fargo Home Mortgage in Des Moines, Iowa. Nearly 100 cuts were made in the San Diego area, 59 in Irvine and fewer numbers in San Bernardino, Rancho Cordova and Walnut Creek.”

Housing Wire – “The claim: Short sales closed in 30 days” (4-5-11)

“But if a mortgage servicer says his or her company can complete a short sale in 30 days, are they being overly ambitious? Eric Friedman, president of PREO, doesn’t think so. His 10-month-old company boasts the ability to accomplish this task. Through PREO.com, Friedman says he lines up banks, investors, servicers, real estate agents and buyers in a seamless process to transact a short sale in as little time as 30 days.”

Housing Wire – “Fisher: The time for banks to support the economy is now” (4-5-11)

“Fisher called for the immediate end for the Federal Reserve’s quantitative easing program and a pullout of all federal support for America’s financial institutions. He made his comments while speaking at the 2011 Society of American Business Editors and Writers conference at Southern Methodist University in Dallas Friday.”

Orange County Register – “SEC: O.C. activist lied to investors” (4-5-11)

“The Securities and Exchange Commission filed civil fraud charges Thursday against high-profile Orange County money manager and political activist Charles ‘Chip’ Hanlon, alleging that Hanlon ‘vastly overstated’ the size of his Delta Global Advisors financial advisory and the financial health of the business.”

Orange County Register – “Property owners get extra day to pay tax” (4-5-11)

“April 10 is the traditional due date for the money, but because this year that day falls on a Sunday, the deadline has moved to Monday!”

Housing Wire – “Fitch finds CMBS delinquencies dip for first time in four months” (4-5-11)

“The overall delinquency rate stood at 8.74% in March, a decrease of 2 basis points from the previous month and the first drop since October. Fitch analysts said despite the deceleration of delinquencies, which fell across four of the five main property types last month, the upswing projecting for the rest of the year will likely take the rate to a peak around 10%.”

Housing Wire – “FHA settles with mortgage lender for improperly refinancing loans” (4-5-11)

“The Federal Housing Administration’s Mortgagee Review Board settled with a Massachusetts mortgage lender that allegedly failed to fully verify whether borrowers could sustain mortgage payments prior to refinancing their loans. As part of the settlement, First American Mortgage Trust of Brookline, Mass., agreed to pay $72,500 to reimburse FHA for past insurance claims and to indemnify FHA’s insurance fund for any claims to be paid on five mortgages should they default within the next 60 months.”

Orange County Register – “How fed shutdown could affect homebuyers” (4-5-11)

“Virtually every mortgage taken now requires an IRS Form 4506 to be processed on the borrower. Lenders use this form to ensure there are no expense deductions, self-employment, rental income, etc that was not claimed on the mortgage application. If the government shuts down these forms cannot be processed and final loan approvals will be delayed.”

Looking Back:

One year ago, John Husing estimated that 10,500 new jobs would be created in Riverside during 2010. First American CoreLogic reported distressed sales accounted for 29 percent of the U.S. market. According to the Clear Capital Home Price Index, US home prices dipped 3.9% in the first quarter of 2010. The rate for 30-year FRM loans was at 5.21%.

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

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The Norris Group Real Estate News Roundup 3/17/11

Thursday, March 17th, 2011

Today’s News Synopsis:

Statistics from the MBA show outstanding commercial/multifamily mortgage debt  fell by 0.5% in the 4th quarter of 2010. FHA mortgage delinquencies decreased about 7% year over year. According to MDA DataQuick, 4,991 new and resale houses and condos sold in the Bay Area during February. Also, 27,320 new and resale houses and condos were sold statewide last month.

In The News:

MBA - “Commercial/Multifamily Mortgage Debt Outstanding Fell by $67 billion, 2.7 Percent in 2010, Driven by CMBS Declines” (3-17-11)

“The level of commercial/multifamily mortgage debt outstanding decreased by 0.5 percent in the fourth quarter of 2010, to $2.4 trillion, according to the Mortgage Bankers Association (MBA) analysis of the Federal Reserve Board Flow of Funds data. On a year-over-year basis, the amount of mortgage debt outstanding at the end of 2010 was $67 billion lower than at the end of 2009, a decline of 2.7 percent.”

Housing Wire – “Senate committee delays foreclosure mediation bill again” (3-17-11)

“The Senate Judiciary Committee delayed voting on a bill that would authorize bankruptcy courts to establish a mediation program in foreclosure cases nationwide. It is the second delay in as many months.”

Housing Wire – “FHA delinquencies drop due to higher quality mortgage origination” (3-17-11)

“The serious delinquency rate for mortgages in the Federal Housing Administration portfolio declined about 7% in the first quarter of 2011 from one year ago. The 8.29% rate dropped from 8.9% a year earlier, according to a quarterly update from the FHA. In the fourth quarter of 2010, the delinquency rate was 8.84%.”

MDA DataQuick – “Bay Area Housing Market Stuck In Neutral; Investors, Cash Buyers Active” (3-17-11)

“A total of 4,991 new and resale houses and condos sold in the nine-county Bay Area last month. That was up 0.5 percent from 4,966 in January but down 0.9 percent from 5,035 in February 2010, according to San Diego-based DataQuick Information Systems.”

MDA DataQuick – “California February Home Sales” (3-17-11)

“An estimated 27,320 new and resale houses and condos were sold statewide last month. That was down 1.4 percent from 27,706 in January, and down 2.8 percent from 28,111 for February 2010. California sales for the month of February have varied from a low of 20,153 in 2008 to a high of 48,409 in 2004, while the average is 32,117. DataQuick’s statistics go back to 1988.”

Housing Wire – “Jobless claims drop 4%” (3-17-11)

“The number of initial jobless claims filed by unemployed Americans fell 4% last week to 385,000 initial claims filed on an seasonally adjusted basis, according to the most recent Labor Department survey.”

Housing Wire – “Small investors play big role in healing housing market” (3-17-11)

“Small, local investors who earn less than $100,000 a year are playing a major role in the housing recovery by acquiring distressed REO properties, fixing them up and renting them out to future buyers.”

NAHB - “Young Home Buyers Will Lead Housing Market Recovery, Says NAHB” (3-17-11)

“Generation X –young families and adults ages 31 to 45 – are likely to lead the home buying recovery as it gets underway, according to real estate experts who spoke at an educational webinar produced by the National Association of Home Builders”

Housing Wire – “RE/MAX: February home sales down 3%” (3-17-11)

“February home sales dropped 3% from one year ago, but increased from January, according to the RE/MAX national housing report.”

Looking Backing:

One year ago, the CBIA reported that new home sales decreased by 12 percent from January of 2009. Mortgage loan applications decreased by 1.9 percent from the previous week. HOPE NOW made over 99,000 modifications in January 2010, and HAMP made over 50,000.

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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