The Norris Group Blog

California Real Estate Headline Roundup

Posts Tagged ‘commercial’

The Norris Group Real Estate News Roundup 3/11/10

Thursday, March 11th, 2010

Today’s News Synopsis:

According to the MBA, the delinquency rate for CMBS increased by 1.63 percent during the last half of 2009. Statistics from RealtyTrac show that 2 percent fewer homes entered the foreclosure process in February. Nineteen percent of home listings experienced a price reduction since March 1st.

In The News:

Mortgage Bankers Association“MBA Report Shows Economic Fallout Continues to Impact Commercial Real Estate Markets/Delinquencies in 4th Quarter 2009″ (3-11-10)

“Between the third and fourth quarters, the 30+ day delinquency rate on loans held in commercial mortgage-backed securities (CMBS) rose 1.63 percentage points to 5.69 percent. The 60+ day delinquency rate on loans held in life company portfolios decreased 0.04 percentage points to 0.19 percent. The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.01 percentage points to 0.63 percent. The 90+ day delinquency rate on multifamily loans held or insured by Freddie Mac increased 0.04 percentage points to 0.15 percent. The 90+day delinquency rate on loans held by FDIC-insured banks and thrifts rose 0.49 percentage points to 3.92 percent.”

LA Times“Fewer homes enter foreclosure process in February” (3-11-10)

“The number of homes caught up in some stage of the foreclosure process in February fell 2% from the previous month to 308,524, a real estate firm will report Thursday. That number is up 6% compared with the same month a year earlier but marked the smallest year-over-year increase since January 2006, according to RealtyTrac Inc.”

Housing Wire“Sellers Cut Fewer Listing Prices as Home Price Declines Slow” (3-11-10)

“Fewer US homes for sale experienced listing price reductions this month, according to online real estate market Trulia.com. It’s further indication of a leveling out in listing price declines amid government stimulus to buy homes. A new low of 19% of listings currently on the market experienced a price cut as of March 1, 2010, based on Trulia’s database of live listings. Sellers slashed $21.6bn off of listing prices.”

Housing Wire“COP Cites Missed Opportunities in Federal Bailout of GMAC” (3-11-10)

“GMAC, once the credit arm of General Motors and now the 14th largest bank holding company in the US, could have been placed into bankruptcy and its costly subsidiary operations wound-down, the Panel said.”

Housing Wire“FDIC Pricing Second Round of ABS” (3-11-10)

“The second round of structured financed notes being issued by the Federal Deposit Insurance Corp. (FDIC) is being priced today. The news comes after the successful launch of the FDIC project to use structured finance as a way to profit from the certain assets of failed banks. It is believed the FDIC is cherry-picking the best performing loans to sell to investors as asset-backed securities (ABS).”

Housing Wire“Jumbo RMBS Delinquencies Nearing Third Year of Rises” (3-11-10)

“The prime jumbo mortgage market, especially in California and Florida, continues to deteriorate in the residential-mortgage backed securities (RMBS) space, posting rising 60-day or more delinquencies for the 33rd consecutive month, according to Fitch Ratings. And to jumbo market players, the trend is expected to continue for some time.”

Housing Wire“Weekly Mortgage Rates Dip Again” (3-11-10)

“Freddie Mac’s (FRE: 1.30 -0.76%) weekly survey put the average rate for a 30-year FRM at 4.95% with an average 0.7 origination point for the week ending March 11, down from the previous week when it was 4.97%. A year ago, Freddie’s survey averaged 5.03%.”

Housing Wire“Storm Brews Over Short Sale Valuations as the Mortgage Market Prepares for HAFA” (3-11-10)

“A storm is brewing between appraisers and broker price opinion (BPO) professionals vying for valuation work for short sales conducted through the Making Home Affordable Foreclosure Alternatives (HAFA) program. The Appraisal Institute — a trade group that represents appraisers — released a public letter it wrote to Treasury Secretary Timothy Geithner on Tuesday, calling for an end of the practice of using BPOs for Making Home Affordable modifications and refinancings, as well as amending the rules for the upcoming HAFA program to require appraisals to determine value for government-incentivized short sales.”

Bloomberg - “REIT Chief Executives See Strengthening Market for Asset Sales” (3-11-10)

“Investors with abundant cash and few deals to chase are driving up commercial property prices, real estate chief executive officers said today.”

Bloomberg - “Apartment Vacancy Rates in U.S. to Decline in 2010, CBRE Says” (3-11-10)

“Apartment vacancies in the U.S., which reached a record high of 7.4 percent in 2009, will fall this year as job losses stabilize and fewer new rental homes enter the market, CB Richard Ellis Group Inc. said. The vacancy rate will decline to 6.8 percent in 2010, the property broker said in a report today. Effective rents, or what tenants pay after concessions, will end the year less than 1 percent down from the fourth quarter of 2009. Rents fell 4.7 percent in the final quarter of last year from a year earlier. “

The Norris Group Real Estate News Roundup 3/4/10

Thursday, March 4th, 2010

Today’s News Synopsis:

Bruce Norris claims that the government’s aid will not be enough to prevent the U.S. economy from sliding back into recession. The NAR reports that national pending home sales decreased by 7.6 percent in January. According to Trepp, commercial real estate delinquencies decreased in February. The delinquency rate for Fannie Mae loans increased to 5.38% last month.

In The News:

Orange County Register – “Hear why housing will slump again” (3-4-10)

“Norris tells ocregister.com in a podcast interview that he believes that all the government aid that’s going to the housing market won’t be enough to keep real estate — and the entire economy — from sliding back into a second wave of recessionary conditions.”

NAR - “Pending Home Sales Down; Severe Weather Impacting Market” (3-4-10)

“The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in January, fell 7.6 percent to 90.4 from an upwardly revised 97.8 in December, but remains 12.3 percent higher than January 2009 when it was 80.5.”

CBIA - “Metro Regions” (3-4-10)

“Curious about housing numbers for a particular area of the state? This is the place to find all the numbers for an individual area.”

Recordnet.com“Region’s future bright, experts say” (3-4-10)

“San Joaquin County, as well as the entire San Joaquin Valley, holds tremendous potential for growth even as it struggles to emerge from the recession, a panel of development experts, business and government leaders said Wednesday. The county could see gains of more than 30,000 new jobs in the next three years, paying wages and benefits of $1.5 billion.”

Housing Wire“Valeo Fund Targets $1trn in Maturing Commercial Mortgages” (3-4-10)

“The private equity firm Valeo Fund is recruiting investors to go after $1trn of commercial mortgages set to mature between 2010 and 2013. The move comes as opportunities are begin to hit the entire commercial market, which has been bracing for struggles.”

Housing Wire“Commercial Mortgages Showing Signs of a Brighter Road Ahead” (3-4-10)

“The blistering climb of commercial real estate delinquency rates, which crossed the 6% threshold in December, started to slow in February, according to the analytics firm Trepp, which monitors collateral performance on related commercial mortgage backed securities (CMBS). The amount of commercial loans at least 30-days delinquent grew 23 basis points (bps) to 6.72% in February, the smallest increase in six months.”

Housing Wire“General Growth Gets Extension for Reorganization, Plans NYSE Re-listing” (3-4-10)

“A bankruptcy judge granted mall real estate investment trust (REIT) General Growth Properties (GGP: 1.05 0.00%) a nearly five-month extension period to file a plan of reorganization for the company to exit bankruptcy.”

Housing Wire“Fannie Single-Family Mortgage Delinquencies Grow to 5.38%” (3-4-10)

“The serious delinquency rate at government-sponsored enterprise (GSE) Fannie Mae (FNM: 1.005 +2.11%) rose nine basis points (bps) to 5.38% in the single-family mortgage book. Its a slight increase from 5.29% last month.”

Housing Wire“Freddie Says Mortgage Rates Dip Below 5%” (3-4-10)

“Freddie Mac said the average interest for a 30-year fixed-rate mortgage was 4.97% with a 0.7 origination point for the week ending March 4, down from 5.05% one week ago. Last year at this time, the 30-year FRM averaged 5.15%.”

Housing Wire“Home Prices Continue Climb from 2009 Levels: Clear Capital” (3-4-10)

“US home prices climbed 5% in February from a year ago, despite an incoming wave of REOs that could saddle the market for another three years, according to the Clear Capital Home Data Index. Prices grew on a yearly basis for the first two months of 2010. The 5% uptick in February bested the 2.3% yearly increase in January. However, prices remained unchanged on a rolling quarterly basis.”

Looking Back:

One year ago, the MBA reported that mortgage applications decreased by 12.6 percent within one week. Statistics from First American CoreLogic showed that 20 percent of mortgages were underwater. Radar Logic claimed that foreclosures increased home sales by approximately 7 percent during 2008. Federally regulated banks filed 62,084 reports of suspected mortgage fraud during the mid-summer of 2008.

The Norris Group Real Estate News Roundup 2/23/10

Tuesday, February 23rd, 2010

Today’s News Synopsis:

The NAR predicts that the commercial real estate market will not recover until after 2011. In California, single family home sales decreased by 3 percent during January. The Standard & Poor’s index shows that national home prices increased slightly during December. 702 banks made the ‘Problem List’ for the FDIC in 2009.

In The News:

NAR - “No Meaningful Recovery in Commercial Real Estate Before 2011″ (2-23-10)

“Lawrence Yun, NAR chief economist, said commercial real estate almost always lags the economy. ‘Because of the lingering impact from the deep recession over the past two years, vacancy rates will trend higher and many commercial property owners will need to make rent concessions,’ he said.”

CAR - “January sales and price report” (2-23-10)

“Existing, single-family home sales decreased 3 percent in January to a seasonally adjusted rate of 539,040 units on an annualized basis compared with December 2009. The statewide median price of an existing single-family home decreased 6.3 percent in January to $287,440, compared with December 2009. C.A.R.’s Unsold Inventory Index fell to 5.8 months in January, compared with 7.3 months in January 2009.

Los Angeles Times“Home prices show small gain in December” (2-23-10)

“The Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas increased 0.3% from November on a seasonally adjusted basis, with 14 cities posting gains. Compared with a year earlier, the index was down 3.1% in December, but the year-to-year rate of decline moderated in all 20 cities.”

Housing Wire“FDIC ‘Problem’ Banks Increased 27% in Q409″ (2-23-10)

“By the end of 2009, 702 banks made the ‘Problem List’ for the Federal Deposit Insurance Corp. (FDIC), a marked increase of 27% from 552 at the end of Q309. Additionally, the total amount of assets of insured institutions increased $137.2bn to $13.7trn in Q409. Bank investments in mortgage-backed securities (MBS) also increased by $44.8bn, overall, to $1.4trn.”

Housing Wire“Lowe’s Profits Top $200m for Q409″ (2-23-10)

“Lowe’s Companies (LOW: 22.81 -1.13%), the world’s second largest home improvement retailer, reported profits of $205m, or $0.14 per share, for its fiscal fourth quarter ending January 29. The Q409 results are up 26.5% from one year ago, when Q408 net earnings were $162m, or $0.11 per share. For the fiscal year ending January 29, 2010, net earnings were $1.78bn, or $1.21 per share, down 18.8% from one year ago, when North Carolina-based Lowe’s earned $2.195bn. In Q309, Lowe’s reported net earnings of $344m.”

Housing Wire“11.3m Homeowners Now Underwater: First American” (2-23-10)

“11.3m homeowners now owe more on their mortgages than the value of their home at the end of Q409, with the Sand States taking four of the top five negative equity, or underwater, markets according to research released by First American CoreLogic.”

MGIC - “MGIC to Lower Mortgage Insurance Rates for Good Credit Borrowers” (2-23-10)

“The new rates will be lower for borrowers with a credit score of 720 or greater and higher for borrowers with credit scores between 620 and 679. No change is expected for those with a score between 680 and 719, according to a form 8-K filed today with the Securities Exchange Commission.”

Housing Wire“Home Depot Posts $342m Q4 Profit” (2-23-10)

“Home improvement retailer Home Depot (HD: 30.75 +1.42%) reported a profit of $342m, or $0.20 per share, for its fiscal year fourth quarter ending January 31. That’s an improvement from last year’s fiscal fourth quarter, when Home Depot lost $54m, or $0.03 per share. But it’s lower than Home Depot’s Q309 net earnings of $689m, or $0.41 per share. Home Depot said its sales performance was driven by gains in kitchen and bath, paint, flooring and plumbing as well as its international businesses.”

The Norris Group Real Estate News Roundup 2/22/10

Monday, February 22nd, 2010

Today’s News Synopsis:

Moody’s reports that commercial property prices increased by 4.1 percent in December. A survey shows that 87 percent of homebuilders expect to lose money due to the new FHA guidelines. According to Campbell Surveys, short sales accounted for 15.9% of home purchases in January. Janet Yellen predicts that the U.S. economy will perform below potential throughout this year and the next.

In The News:

Los Angeles Times“IRS issues new guidelines on obtaining home buyer tax credits” (2-21-10)

“Despite blizzards that shut federal offices for days, the Internal Revenue Service issued new guidance Feb. 12 on the two tax credit programs that are powering the country’s real estate markets — the $6,500 credit for repeat buyers and the $8,000 first-time buyer credit. The new IRS policy clarified documentation that taxpayers need to submit to successfully obtain either credit. When Congress revised the credit programs in November, it ordered the IRS to tighten its rules and monitoring to curtail widespread frauds that had emerged earlier in 2009.”

Sacramento Bee“Schwarzenegger proclaims `the worst is over’ for California” (2-21-10)

“Despite the state’s high unemployment rate, California’s economy is making a slow comeback and ‘the worst is over,’ Gov. Arnold Schwarzenegger said today.”

Housing Wire“Commercial Real Estate Prices Up as Foreclosures Threaten Recovery” (2-22-10)

“US commercial real estate prices as measured by Moody’s Investors Service/Real Estate Analytics, Commercial Property Price Indices (CPPI) increased for the second month in a row in December, rising 4.1%, as the commercial real estate (CRE) market continues to face several challenges, such as the rising tide of defaults and subsequent foreclosures.”

Housing Wire“Homebuilders Expect FHA Changes to Hurt Sales” (2-22-10)

“However, 87% of builders surveyed said they expect to lose sales due to new FHA guidelines. Half of the builders surveyed expect to lose 10% or more of sales. As HousingWire reported in January, the FHA raised insurance fees and down payments for borrowers with lower credit scores to address the FHA’s capital reserve ratio, which fell below the Congressionally mandated 2% threshold. Borrowers with a FICO score of less than 580 are now required to make a 10% down payment, up from the previous 3.5% down payment. In addition, seller concessions have been cut in half to 3%, from 6% and mortgage insurance fee at closing increased from 175 bps to 226 bps.”

Housing Wire“Governors See Bad Economic Times Getting Worse for States” (2-22-10)

“General fund spending among the states dropped 3.4% in 2009 and 5.4% in 2010, based on enacted budgets. The only other annual decline in state spending occurred in 1983, when it dropped 0.7%.”

Housing Wire“Survey Finds Short Sales Outnumber REO in January Purchases” (2-22-10)

“Short sales accounted for 15.9% of home purchases in January, surpassing the share of other distressed property activity, when real estate owned (REO) properties are measured separately, according to a monthly Campbell/Inside Mortgage Finance (IMF) survey of more than 1,500 real estate agents, conducted by Campbell Surveys.”

Bloomberg - “Yellen Says U.S. Economy Will Perform Below Potential” (2-22-10)

“Federal Reserve Bank of San Francisco President Janet Yellen said the U.S. economy will operate below potential this year and next and still needs low interest rates to gain strength. “

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

Tuesday, February 2nd, 2010

Today’s News Synopsis:

The NAR’s index  shows that pending home sales increased by 1 percent in December. According to the MBA, commercial and multifamily mortgage loan originations increased by 15 percent during the 4th quarter of 2009.  The FHA reports that borrower delinquencies increased by 6.5 percent from the previous year. Fannie Mae is offering a 3.5 percent discount to all people who buy REO properties.

In The News:

NAR - “Pending Home Sales Stabilize, Remain Above Year-Ago Levels” (2-2-10)

“The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in December, increased 1.0 percent to 96.6 from 95.6 in November, and remains 10.9 percent above December 2008 when it was 87.1. In November, the monthly index had fallen by 16.4 percent from surging activity in preceding months.”

Mortgage Bankers Association“MBA Study: Originations of Commercial and Multifamily Mortgages Increased in Fourth Quarter 2009″ (2-2-10)

“Fourth quarter 2009 commercial and multifamily mortgage loan originations were 12 percent higher than during the same period last year and 15 percent higher than during the third quarter of 2009, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.”

Washington Post“Rising FHA default rate foreshadows a crush of foreclosures” (2-2-10)

“About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency’s figures show.”

Housing Wire“First American Offers Appraiser Reviews of BPOs” (2-2-10)

“First American Valuation and Property Solutions – the Dallas-based subsidiary of the First American Corporation (FAF: 30.68 +1.86%) – added appraiser reviews of broker price opinion (BPO) reports to its new property valuation offering. The move to add appraiser reviews allows firms without on-staff appraisers to outsource BPO verification operations – a trend sources say is catching on.”

Housing Wire“HUD 2011 Budget Drops to $41.6bn on Higher FHA Premiums” (2-2-10)

“The US Department of Housing and Urban Development (HUD) budget proposal for 2011 dipped 5% below the budget in 2010 to $41.6bn after raising annual Federal Housing Administration (FHA) insurance premiums by 50 bps to 2.25% earlier this month.”

Housing Wire“CMBS Performance Slides Again: Trepp” (2-2-10)

“The rate of 30-plus-day delinquency in commercial mortgage-backed securities (CMBS)reached a new record high of 6.49% in January, according to commercial real estate data provider Trepp.”

Housing Wire - “Fannie Gives 3.5% REO Discount” (2-2-10)

“Fannie Mae (FNM: 1.02 -0.97%) will provide a 3.5% discount to those purchasing a real-estate owned (REO) property listed as part of its HomePath division, according to a company notice.”

Bloomberg - “D.R. Horton Climbs Most in 10 Months on Profit Gain” (2-2-10)

“D.R. Horton Inc., the second-largest U.S. homebuilder by revenue, climbed the most in 10 months after the company reported its first quarterly profit since 2007 on sales and profit margins that exceeded analysts’ estimates.”

Bloomberg - “U.S. Vacancy Rate Increases as Banks Seize More Homes” (2-2-10)

“The homeowner vacancy rate increased to 2.7 percent from 2.6 percent in the third quarter, the U.S. Census Bureau said in a report today. There were 2.09 million empty properties on the market, up from 1.99 million, according to the report.”

Inman - “First-timers are fastest-growing segment” (2-2-10)

“First-time homebuyers not only account for the largest share of home sales in many markets, but represent the fastest-growing segment of home sales in nearly half of those markets, brokers surveyed by Inman News report. Second homes and move-up homes, on the other hand, are the most rapidly shrinking segment of their business, brokers responding to the survey said.”

Looking Back:

One year ago,  a $5 billion increase in mortgage debt investment by foreign banks was noted by Morgan Stanley. San Francisco analysts predicted that condominium prices in the SF area would significantly decrease. Obama exclaimed that he would require banks receiving bailout money to increase lending to borrowers.

The Norris Group Real Estate News Roundup 1/29/10

Friday, January 29th, 2010

Today’s News Synopsis:

Foresight Analytics estimates that between 2010 and 2014, $770bn in commercial loans will be on properties in negative equity. According to the Commerce Department, the U.S. economy expanded in the 4th quarter at a six year record pace. RealtyTrac forecasts that foreclosures probably will reach 3 million this year. Henry Paulson claimed that Russia encouraged China to force a bailout of the largest U.S. mortgage-finance companies.

In The News:

Housing Wire“DoJ Mortgage Probes May Overextend Authority: K&L Gates” (1-29-10)

“The Department of Justice (DoJ) initiative to beef up investigations of discriminatory mortgage lending and servicing practices will result in more numerous and forceful reviews of mortgage lenders and servicers, including investigations that appear to merge fair lending and consumer protection principles, according to an analysis of the proposal written by global law firm K&L Gates. The firm also warns that the DoJ may be over-extending departmental authority in doing so.”

Housing Wire“Tougher Times Coming for Commercial Real Estate” (1-29-10)

“Between 2010 and 2014, $770bn in commercial loans will be on properties in negative equity, and may need to be written down, according to a study by Foresight Analytics, a real estate research firm. The report is likely to only add to the woes surrounding the current commercial real estate (CRE) sector.”

Housing Wire“Fed MBS Purchases 93% Complete with Another $12bn” (1-29-10)

“The Federal Reserve Bank of New York in the week ending January 27th continued to buy mortgage assets from government-sponsored entities as the program winds-down to a close by the end of the quarter. The Fed bought a total of $12.5bn in mortgage-backed securities (MBS) – $5.1bn Freddie Mac (FRE: 1.1799 -0.01%) MBS, $4.7bn Fannie Mae (FNM: 0.9868 -1.32%) MBS and $2.7bn Ginnie Mae MBS, according to a summary of purchases. The New York Fed also sold $500m of MBS in the same week, bringing the net purchases to $12bn, the same as last week.”

Bloomberg - “U.S. Economy: Growth Jumps 5.7%, Fastest Pace in Six Years” (1-29-10)

“The U.S. economy expanded in the fourth quarter at the fastest pace in six years as factories cranked up assembly lines, indicating the recovery may be strong enough to be weaned from government support. The 5.7 percent increase in gross domestic product reported by the Commerce Department in Washington today exceeded the 4.8 percent median forecast of economists surveyed by Bloomberg News. Separate reports showed consumer sentiment and a barometer of business activity rose more than forecast in January.”

Bloomberg - “Obama Housing Rescue Threatened by Foreclosures, Unemployment” (1-29-10)

“Foreclosures probably will reach 3 million this year, surpassing the record of 2.82 million in 2009, according to Irvine, California-based RealtyTrac Inc. That would more than offset an estimated 448,000-unit rise in home sales, based on the average forecast of the National Association of Realtors, the Mortgage Bankers Association and Fannie Mae.”

Bloomberg - “Paulson Says Russia Urged China to Dump Fannie, Freddie Bonds” (1-29-10)

“Russia urged China to dump its Fannie Mae and Freddie Mac bonds in 2008 in a bid to force a bailout of the largest U.S. mortgage-finance companies, former Treasury Secretary Henry Paulson said.”

Orange County Register“Will buyers rush to cash in on tax credit?” (1-29-10)

“the spring and summer buying seasons are about to kick in. The tax credit deadline will likely add to the sales volume, but it’s critical to remember that ‘first timer’ and ’second home’ contracts must not only be signed by April 30 – escrows must close by June 30! Short sale property escrows have a very hard time closing within 60 days right now.”

Realty Times“Aging Buyers Want Easy, Comfortable Homes with First-Floor Master Bedroom” (1-29-10)

“The Baby Boomer generation makes up about 28 percent of the population and has some interesting statistics. According to BabyBoomerMagazine.com, this group has greater wealth than any other, controls 70 percent of the total net worth of American households, and accounts for 40 percent of total consumer demand.”

In The News:

One year ago, the CBIA announced that 65,380 building permits were issued from 2008 to 2009. The Commerce Department reported that sales of single-family homes decreased by 14.7 percent. The House of Representatives approved a $819-billion stimulus package. Freddie Mac reported that the 30-year fixed mortgage dipped to 5.10 percent.

The Norris Group Real Estate News Roundup 1/28/10

Thursday, January 28th, 2010

Today’s News Synopsis:

According to Freddie Mac, the 30-year fixed-rate mortgage fell by 0.01 percent from last week. Research from RealtyTrac shows that California and Florida account for 17 of the nation’s 20 worst housing markets. The Federal Reserve declared that the U.S. economy is now in recovery.

In The News:

Housing Wire“Freddie Mac Mortgage Refinance Purchases Swell 41%” (1-28-10)

“The volume of refinance loans bought by mortgage giant Freddie Mac (FRE: 1.1799 -2.49%) continued to grow in December, swelling 41% from the previous month to $27.3bn.”

Housing Wire“Capstead Writes Off $40m in Commercial Real Estate Liability” (1-28-10)

“According to analysts at Barclays Capital the worst performing commercial property sector is hotels. Last quarter, they note hotels saw a 177bp increase, to 11.4%, in the 30+ day delinquency rate, led by the $200m Renaissance Mayflower Hotel, located near the White House, and $130m Trinity Hotel Portfolio, a hotel investment consortium, both of which were transferred to a special servicer, likely for an orderly liquidation.”

Housing Wire“Freddie Rates Dip, Say Below 5%” (1-28-10)

“Freddie Mac’s (FRE: 1.17 -3.31%) weekly survey put the average rate for a 30-year fixed-rate mortgage (FRM) at 4.98% with an average 0.6-origination point for the week ending January 28. That’s a slight dip from last week, when Freddie said the rate was 4.99%. A year ago, the average 30-year FRM rate was 5.10%.”

Bloomberg“Lenders Pursue Mortgage Payoffs Long After Homeowners Default” (1-28-10)

“Amid a crisis that stripped $6.4 trillion, or 28 percent, from the value of U.S. residential real estate since the 2006 peak, lenders are exercising their rights to pursue unpaid mortgage balances. To get their money, they can seize wages, tap bank accounts and put liens on other assets held by debtors.”

Bloomberg“Lennar Rallies as Homebuilders Diverge on Profits” (1-28-10)

“Lennar Corp. and KB Home this month reported their first quarterly profits since 2007 because of special tax refunds designed to help homebuilders struggling with declines in sales.”

Bloomberg“Las Vegas, California Cities Top Foreclosure List in 2009″ (1-28-10)

“Las Vegas homeowners had the highest U.S. foreclosure rate last year, and California and Florida cities accounted for 17 of the nation’s 20 worst markets as unemployment extended the housing recession.”

Bloomberg“Fed Lays Ground for End to Stimulus With Recovery Declaration” (1-28-10)

“The Federal Reserve panel in charge of interest rates declared for the first time the U.S. economy is in ‘recovery’ and took several steps to prepare investors for the removal of aggressive monetary stimulus.”

Orange County Register - “Irvine home tops most-viewed list” (1-28-10)

“The folks at Realtor.com compiled a list of the top 10 most popular homes for sale in Orange County from their Web site (reflecting last week).”

Realty Times – “Homebuyer Tax Credit Boosts Economy” (1-28-10)

“The vast majority of current homeowners say they would spend the expanded version of the homebuyer tax credit on repaying existing debts, home improvements, savings and investments and household expenses, according to a Coldwell Banker survey of 1,000 homeowners.”

Looking Back:

One year ago, the MBA reported that mortgage application volume decreased by 38 percent in one week. Zillow.com estimated that 14 percent of homeowners were underwater. The Federal Reserve chose to keep the interest rate at zero.

The Norris Group Real Estate News Roundup 1/21/10

Thursday, January 21st, 2010

Today’s News Synopsis:

MDA DataQuick reports that 7,828 new and resale houses and condos were sold in the Bay Area during December. According to OCC, seriously delinquent loans of 60 or more days increased to 6.2 percent of the servicing portfolio. Radar Logic’s study of 25 metropolitan markets shows that home sales increased by 46.7%. Freddie Mac’s weekly survey shows that mortgage rates on 30-year U.S. loans fall to 4.99%.

In The News:

DQNews - “Bay Area December home sales strongest in three years” (1-21-10)

“A total of 7,828 new and resale houses and condos were sold in the nine-county region last month. That was up 13.8 percent from 6,878 in November, and up 13.6 percent from 6,889 for December 2008, according to MDA DataQuick of San Diego.”

OCC - “OCC and OTS Mortgage Metrics Report” (1-21-10)

“Overall, mortgage performance continued to decline as a result of continuing adverse economic conditions including rising unemployment and loss in home values. The percentage of current and performing mortgages fell to 87.2 percent of the servicing portfolio. Seriously delinquent mortgages— loans 60 or more days past due and loans to delinquent bankrupt borrowers—rose to 6.2 percent of the servicing portfolio. Foreclosures in process increased to 3.2 percent, while new foreclosure actions remained steady for the third consecutive quarter at 369,209. Of particular note, delinquencies among prime mortgages, the largest category of mortgages, continued to climb. The percentage of prime mortgages that were seriously delinquent in the third quarter was 3.6 percent, up 19.6 percent from the second quarter and more than double the percentage of a year ago.”

Housing Wire“BarCap Expects ‘Little Bite’ from FHA Underwriting Changes” (1-21-10)

“Recently-announced underwriting changes to the Federal Housing Administration’s (FHA) mortgage insurance program might be ‘all bark, little bite’ according to commentary Thursday by Barclays Capital (BarCap) researchers. The FHA changes include increases in the mortgage insurance premium, increased downpayment for low FICO borrowers, reduced ability to roll closing costs into the loan and increased lender recourse to FHA lenders.”

Housing Wire“Radar Logic Says Housing Market is Poised for Recovery” (1-21-10)

“Residential real estate showed some signs of life in November, according to Radar Logic’s monthly Residential Property Index (RPX). November home sales volume increased year-over-year in all of the 25 metropolitan markets the RPX report covers. Sales volume increased 46.7% year-over-year and 1.5% month-over-month.”

Housing Wire“PNC Posts $2.4bn Gain, 61 Permanent HAMP Mods in 2009″ (1-21-10)

“The PNC Financial Services Group (PNC: 55.70 -5.26%) reported a Q409 net income of $1.1bn, or $2.17 per diluted common share, an increase from the $559m gain in Q309. The company’s net income for the year reached $2.4bn, or $4.36 per diluted common share, compared to $914m, or $2.44 per share, in 2008.”

Housing Wire“Investors Ask Fed for $1.4bn of TALF Loans to Buy Legacy CMBS” (1-21-10)

“The Federal Reserve Bank of New York on Wednesday received requests for $1.45bn of government loans to buy securities backed by commercial mortgages.”

Bloomberg - “BlackRock Proposes New Consumer Bankruptcy Option” (1-21-10)

“Consumers need a new type of bankruptcy that would better aid homeowners and be fairer for mortgage-bond investors than the existing U.S. loan-modification program, BlackRock Inc. Vice Chairman Barbara Novick said. BlackRock, the world’s largest asset manager, proposes creating a bankruptcy option under which terms of a consumer’s mortgage can be eased, though only after other debts are eliminated, Novick said in a telephone interview. Judges would need to follow a formulaic approach, she said.”

Bloomberg - “Homebuilders Turn to Private Equity for Financing” (1-21-10)

“More than 40 U.S. homebuilders have teamed up with private equity firms to acquire and complete unfinished subdivisions as banks cut construction lending. The investments will pay off for the builders and their investors if the prices are low enough and the locations are in areas where demand is recovering, said Megan McGrath, a home building industry analyst at Barclays Capital Inc. in New York.”

Bloomberg - “Bank Failures Should Destroy CEOs, Buffett Tells Fox” (1-21-10)

“President Barack Obama’s proposal to regulate banks should include a requirement that chief executive officers and their spouses forfeit their assets when companies fail, billionaire Warren Buffett said on Fox Business Network.”

Bloomberg - “Mortgage Rates on 30-Year U.S. Loans Fall to 4.99%” (1-21-10)

“Mortgage rates in the U.S. dropped for a third week, lowering borrowing costs for consumers and supporting government efforts to boost the housing market. The rate for 30-year fixed U.S. home loans fell to 4.99 percent for the week ended today from 5.06 percent, mortgage finance company Freddie Mac said in a statement today. The average 15-year rate declined to 4.4 percent from 4.45 percent, according to the McLean, Virginia-based company.”

Bloomberg - “U.S. Life Insurers May Face More Real Estate Losses” (1-21-10)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., may face $15 billion in additional commercial real estate losses, most of which will be recognized in the next two years, Fitch Ratings said.”

Looking Back:

One year ago, the NAHB reported that builder confidence had decreased to a record low. Dataquick reported that foreclosures represented more than half of all sales.  Research from the Construction Industry Research Board showed that Orange County governments issued 3,156 building permits to homebuilders in 2008.

The Norris Group Real Estate News Roundup 1/20/10

Wednesday, January 20th, 2010

Today’s News Synopsis:

The MBA’s Market Composite Index shows that loan application volume increased by 9.1 percent. Policy changes for FHA will consequently cause borrowers to pay more on their FHA-insured mortgages. HUD reports that housing starts declined 4% in December. Regional housing inflation rose 0.2% in Southern California.

In The News:

Mortgage Bankers Association“Refinance Applications Increase as Mortgage Rates Fall in Latest MBA Weekly Survey” (1-20-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 15, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 9.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10.4 percent compared with the previous week and decreased 52.3 percent compared with the same week one year earlier.”

Mortgage Bankers Association“MBA Comments on Changes to FHA Credit Policy” (1-20-10)

“Borrowers may have to pay a little more for their FHA-insured mortgages or certain borrowers will have to put more money down for their home, but these changes are necessary given the stress that the housing downturn has put on the FHA program.”

Housing Wire“Commercial Real Estate Investor Demand to Grow in 2010″ (1-20-10)

“The start of 2010 is showing signs of growing investor demand in US commercial real estate, and potentially in related secondary markets, despite the lagging performance of underlying collateral. The pick-up is also predicted to be mirrored in similar markets in Europe and Asia; areas expected to see comparatively better performance. In a report from the rating agency Moody’s, analysts project some pick-up in commercial real estate (CRE) demand after Q409, which would help markets after little movement for much of the year.”

Housing Wire“Housing Starts Drop, Permits Up in December” (1-20-10)

“After jumping up 8.9% one month earlier, housing starts declined 4% to a seasonally adjusted annual rate of 557,000 in December, according to the Department of Housing and Urban Development (HUD) and the Commerce Department’s Census Bureau.”

Housing Wire - “BofA Posts $5.2bn Loss in Q409 After TARP Repayment” (1-20-10)

“In the same quarter of 2008, BofA posted a net less of $2.4bn, or $0.48 per diluted share. Excluding the $4bn TARP repayment, BofA had a net loss of $194m in Q409, which narrowed from the $1.8bn loss from a year earlier. For all of 2009, BofA reported a net income of $6.3bn, an improvement from $4bn in 2008.”

Housing Wire“Morgan Stanley Posts $413m Q409 Profit as Real Estate Gains” (1-20-10)

“Firm-wide results for the full year reflected $1.9bn of net losses on real estate investments ‘amidst the ongoing industry-wide decline in this market,’ Morgan Stanley said in the earnings statement.”

Housing Wire“Wells Fargo Posts Record $12.3bn Annual Net Income” (1-20-10)

“Wells Fargo said mortgage originations and servicing revenue was $3.4bn in the quarter, and its total mortgage banking noninterest income accounted for 15% of the company’s consolidated Q409 revenue. The bank had $1.2bn in income from mortgage origination and sales activities on $94bn of residential mortgage originations and $144bn of applications.”

Bloomberg - “‘Tranche Warfare’ Erupts as Property Owners Slide Into Default” (1-20-10)

“Infighting among lenders with different classes of debt, called tranches, is on the rise in the hotel industry and throughout the $3.5 trillion market for commercial real estate loans after property prices fell more than 40 percent from their peak in 2007. Commercial mortgage defaults more than doubled to 3.4 percent in last year’s third quarter from a year earlier.”

Bloomberg - “Property Bonds Beat Corporates as Simon Sells: Credit Markets” (1-20-10)

“Real estate borrowers are leading the rally in U.S. corporate bonds as investors add to bets property companies will weather an increase in commercial mortgage defaults. Bonds sold by real-estate investment trusts, shopping-mall owners and office landlords have gained 3.27 percent this month, exceeding 3.18 percent for all of the fourth quarter, and BBB rated commercial mortgage bonds returned 3.59 percent, according to Bank of America Merrill Lynch indexes. The gains are the biggest among investment-grade issuers, which returned 1.65 percent so far in 2010, the indexes show.”

Orange County Register“SoCal housing inflation lowest in 32+ years” (1-20-10)

“Overall regional housing inflation rose 0.2% for the year, lowest since they started this data series in 1977. Household energy costs fell 8.8% last year, biggest drop in the series that dates to 1977.”

Orange County Register“408 south coast homes in default on loans” (1-20-10)

“There are hundreds of homes in Dana Point, Laguna Beach and San Clemente that are in default on their mortgages and in danger of being foreclosed. According to Trulia.com, a total of 408 homes in these south coastal communities have received a notice of default from their bank, which typically follows one or often a series of missed mortgage payments and a late notice.”

Inman - “Zillow, Trulia slip in Hitwise ratings” (1-20-10)

“Realtor.com remained the dominant Web site in the real estate category, with 6.79 percent market share. Rounding out the top 10 Web sites were Yahoo! Real Estate (3.8 percent), Zillow (3.5 percent), ZipRealty (2.91 percent), eBay’s Rent.com (2.57 percent), Service Magic (2.27 percent), Trulia.com (2.16 percent), Homes.com (1.99 percent), MSN Real Estate (1.78 percent) and Apartments.com (1.32 percent).”

Inman - “Google, RPR and the future” (1-20-10)

“Marty Frame, president of NAR’s Realtors Property Resource, which seeks to create a national database of property information and a new property-valuation system for Realtors to access, discusses RPR plans with Dale Ross, RPR CEO.”

Looking Back:

One year ago, congress voted to use the second half of the $700 billion TARP bailout. FHA was offering 3.5%-down mortgages to qualified buyers. Nouriel Roubini predicted that the U.S. financial crisis may reach $3.6 trillion. Dataquick reported that foreclosures made up just 6 percent of resales in August 2007.

The Norris Group Real Estate News Roundup 1/12/10

Tuesday, January 12th, 2010

Today’s News Synopsis:

The Federal Reserve made $46.1 billion last year. The MBA predicts that mortgage originations will decline by 39 percent in 2010. According to Integrated Asset Services, national home prices fell by 0.3 percent in November of 2009. FHA reports that foreclosure starts on mortgages from Fannie Mae and Freddie Mac decreased by 15 percent from the second quarter to the third quarter of 2009.

In The News:

Los Angeles Times“Fed’s reaction to crisis helps deliver record $46.1-billion profit” (1-12-10)

“The Federal Reserve today announced it made a record $46.1-billion profit last year, countering concerns that the central bank has put too much taxpayer money at risk in attempts to stabilize the financial industry.”

Housing Wire“MBA Expects Mortgage Originations to Fall 40% in 2010″ (1-12-10)

“The mortgage finance industry will likely see a continued slow-down in 2010 as unemployment remains high and home sales slide, the Mortgage Bankers Association (MBA) said Tuesday at a media briefing over the state of the real estate industry. The MBA projected total mortgage origination on residential one- to four-family properties is likely to plummet to $1.28trn in all of 2010, from $2.11trn in all of 2009. The projection marks a 39% decline in total mortgage origination in 2010.”

Housing Wire“MetLife to Provide Reverse Mortgage Program for ABA Banks” (1-12-10)

“The American Bankers Association (ABA) partnered with MetLife Home Loans to provide member banks a reverse mortgage program. Banks provide reverse mortgages to let homeowners convert their home into cash and can allow older borrowers to supplement social security, meet medical expenses and make home improvements.”

Housing Wire“Tax Refund Gives KB Homes $100m Q4 Profit” (1-12-10)

“A tax return from profits earned during the housing bubble put KB Home (KBH: 15.72 -4.03%) in positive net profit territory in its fiscal year Q409 that ended Nov. 30. Excluding a $191.7m tax refund, KB Home would have lost $91m in the quarter, but instead posted a $100.7m, or $1.31 per share, net profit. With or without the tax refund, the quarter’s results are better than the $307.3m loss in Q408.”

Housing Wire“IAS Price Index Dips on Declines in Northeast, Midwest” (1-12-10)

“The Integrated Asset Services (IAS) index of national house shows prices fell 0.3% in November, the collateral valuation and management services firm said. That’s better than the 0.5% decline in prices the index experienced in October and the 0.6% decrease in September.”

Housing Wire“Sellers Cut Listing Prices on 21% of Homes: Trulia” (1-12-10)

“As of Jan. 1, 2010, sellers cut listing prices on 21% of homes currently on the US market, according to the real estate site, Trulia.com.”

Bloomberg - “U.S. Subpoenas 15 FHA Lenders With High Mortgage Defaults” (1-12-10)

“The U.S. Housing and Urban Development Department said it subpoenaed 15 mortgage companies today to seek out possible fraud in an effort to stem losses on loans insured by the Federal Housing Administration. HUD officials, who oversee the FHA mortgage insurance program, said they haven’t haven’t found any evidence of wrongdoing at the lenders, and were singling out those with the highest default rates.”

Bloomberg - “Life Insurers to Sidestep CMBS Losses, Barclays Says” (1-12-10)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., will sidestep losses on investments tied to commercial mortgages, said Eric Berg, an analyst with Barclays Plc. ”

Bloomberg - “PMI Drops After Goldman Sachs Sell Recommendation” (1-12-10)

“PMI Group Inc., the third-largest U.S. mortgage insurer, fell the most in five months after a Goldman Sachs Group Inc. analyst said he expects more losses as foreclosures increase.”

Inman - “More loans going bad, but more get help” (1-12-10)

“More homeowners fell behind on their payments during the third quarter of 2009, but fewer were funneled into the foreclosure process as loan servicers engaged in more loan workouts, modifications and short sales, according to a new report. Foreclosure starts on loans guaranteed by Fannie Mae and Freddie Mac fell 15 percent from the second quarter to the third quarter, the Federal Housing Finance Agency said in its quarterly Foreclosure Prevention and Refinance Report.”

Orange County Register“Housing market warming up in south coast?” (1-12-10)

“In a typically slow quarter for real estate, all three south coast cities saw their expected market time speed up a bit, according to a biweekly report by Steven Thomas of Altera Real Estate. Two weeks ago, it would have taken an expected 6.86 months to sell all of Dana Point’s active home stock, which has sped up slightly to an expected 5.16 months.”

Looking Back:

One year ago, some economists estimated that the Modesto, Stockton, Bakersfield, Riverside and Sacramento housing markets would take the longest to recover. President Bush requested the remaining $350 billion of the financial rescue, and handed his economic authority to Barack Obama. Distressed home sales in Orange County decreased by 7.2 percent.