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By Bruce Norris .

The Norris Group Real Estate News Roundup 3/15/11

Tuesday, March 15th, 2011

Today’s News Synopsis:

14,369 new and resale houses and condos sold in Southern California last month, according to MDA DataQuick. A survey shows the majority of large fund managers do not expect interest rates to increase in the near term. ForeclosureRadar said default notices in California decreased 29.6% year over year. A study from NAHB economists shows that a family earning $80,000 per year who buys a $200,000 house will receive $41,138 in tax benefits over the entire term of home ownership.

In The News:

MDA DataQuick – “Southland February Home Sales At 3-year Low; Investor Interest High” (3-15-11)

“Last month 14,369 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 0.6 percent from 14,458 in January, and down 6.4 percent from 15,359 in February 2010, according to DataQuick Information Systems of San Diego.”

NAR - “Tax Time Less Taxing for Home Owners” (3-15-11)

“A number of tax deductions and credits are still available for home owners; these include deductions – with specific limits – for mortgage interest and capital gains on home sales, and credits for certain energy-efficient home improvements. Even with these benefits, home owners pay 80-90 percent of all U.S. federal income taxes.”

Housing Wire – “Housing needs mortgage servicing standards: OCC” (3-15-11)

“National mortgage servicing standards will be an essential part of the new housing market, acting comptroller of the currency John Walsh said Tuesday. But reaching a consensus on how to devise those standards is a struggle that will take more work, he conceded, while speaking to the American Bankers Association.”

Housing Wire - “Oil shocks hedge against U.S. interest rate hike” (3-15-11)

“Oil price shocks greatly reduce the probability of higher interest rates in the near term, the latest Bank of America Merrill Lynch Survey of Fund Managers said Tuesday.”

NAHB - “Builder Confidence Edges Up One Point in March” (3-15-11)

“After four consecutive months hovering at the same low level, builder confidence in the market for newly built, single-family homes improved by a single point in March, rising to 17 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest level the HMI has reached since May 2010, when the survey period corresponded with the final days of the federal home buyer tax credit program.”

Housing Wire – “Foreclosure activity slows in February: ForeclosureRadar” (3-15-11)

“Notice of default filings in California fell 29.6% on a year-over-year basis. The Golden State also experienced a 24.5% drop in sales back to the bank and a 20.3% decline in properties purchased by third parties.”

NAHB - “Tax Time Can Mean Big Savings for Homeowners” (3-15-11)

“A study from NAHB economists, ‘The Tax Benefits of Homeownership,’ details sample savings for a variety of income levels and homeownership situations. In one example, a household with an $80,000 annual income that buys a home with a $200,000 mortgage will save on average $1,765 in the first year—and realize a total benefit of $41,138 over the expected period of homeownership.”

NAHB - “Builder Confidence Edges Up One Point in March” (3-15-11)

“After four consecutive months hovering at the same low level, builder confidence in the market for newly built, single-family homes improved by a single point in March, rising to 17 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest level the HMI has reached since May 2010, when the survey period corresponded with the final days of the federal home buyer tax credit program.”

Housing Wire – “More than one-third of CMBS loans make scheduled balloon payments in February” (3-15-11)

“Trepp, a provider of commercial mortgage-backed securities data, said 38.4% of CMBS loans made their scheduled balloon payments in February, compared to 38.7% a month earlier.”

Housing Wire – “GSEs inflated subprime balloon before it popped: Cato Institute” (3-15-11)

“the researcher paints the government-sponsored enterprises as culprits in the subprime debacle by citing data showing Fannie and Freddie acquired 40% of all newly issued private-label subprime securities issued during the housing boom years of 2003 and 2004.”

Bloomberg - “Lehman Seeks Partner on Real Estate Development Projects” (3-15-11)

“Lehman Brothers Holdings Inc. (LEHMQ) sent requests to at least six homebuilders and developers seeking partners for 75 real estate projects in 19 states, according to executives at three companies who reviewed the solicitations.”

Looking Back:

One year ago, builder confidence decreased by over 10 percent within half of a month. Sacramento home sales decreased by 26 percent from 2009. According to LPS, the U.S. mortgage delinquency rate was at 10.25%. California contributed $2.6trn to the total $5.7trn of US housing wealth lost since the peak of 2006.

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 1/20/11

Thursday, January 20th, 2011

Today’s News Synopsis:

Statistics from MDA DataQuick show 7,178 new and resale houses and condos were sold in the Bay Area last month, and a total of 36,215 were sold statewide. The NAR reports existing home sales increased 12.3% in December. Fannie Mae announced a 45 day delay on foreclosures for borrowers receiving aid from the Hardest Hit Fund.

In The News:

MDA DataQuick – “Bay Area Housing Ends Year With Many Looking but Not Buying” (1-20-11)

“A total of 7,178 new and resale houses and condos were sold in the nine-county Bay Area last month. That was up 17.5 percent from 6,111 in November and down 8.3 percent from 7,828 in December 2009, according to San Diego-based DataQuick Information Systems.”

MDA DataQuick – “California December Home Sales” (1-20-11)

“An estimated 36,215 new and resale houses and condos were sold statewide last month. That was up 15.3 percent from 31,403 in November, and down 13.4 percent from 41,837 for December 2009. California sales for the month of December have varied from a low of 25,585 in 2007 to a high of 66,503 in 2003, while the average is 44,338. DataQuick’s statistics go back to 1988.”

NAR - “December Existing-Home Sales Jump” (1-20-11)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 12.3 percent to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9 percent below the 5.44 million pace in December 2009.”

Yahoo - “Rate on 30-year fixed mortgage rises to 4.74 pct.” (1-20-11)

“The average rate rose to 4.74 percent this week from 4.71 percent the previous week, Freddie Mac said Thursday. The average rate on the 15-year loan, a popular refinance option, slipped to 4.05 percent from 4.08 percent.”

Housing Wire – “Fannie Mae delays foreclosures 45 days for Hardest Hit Fund programs” (1-20-11)

“Fannie Mae directed its mortgage servicers to delay scheduled foreclosure sales 45 days for borrowers that have been approved for assistance through the Hardest Hit Fund.”

Housing Wire – “Class-action federal securities fraud cases on the rise” (1-20-11)

“Federal securities fraud class-action cases rose in the second half of 2010, according to a report prepared by the Stanford Law School in cooperation with Cornerstone Research. The report shows 104 class-action cases alleging federal securities fraud were filed in the second half of the year, up from 72 filings in the first six months of the year.”

Housing Wire – “Jobless claims drop 8.4% to 404,000″ (1-20-11)

“After rising for a few weeks, initial jobless claims fell nearly 8.4% last week to 404,000, well below analysts’ estimates and the largest decline since February.”

Bloomberg - “Sales of U.S. Existing Homes Probably Rose as Demand Struggled to Rebound” (1-20-11)

“Purchases increased 4.1 percent from the prior month to a 4.87 million annual rate, according to the median forecast of 72 economists surveyed by Bloomberg News. Other reports may show a gauge of the economy’s direction grew for a sixth month, and manufacturing expanded in the Philadelphia region in January.”

Looking Back:

One year ago, the MBA’s Market Composite Index showed that loan application volume increased by 9.1 percent. HUD reported that housing starts declined 4% in December. Regional housing inflation rose 0.2% in Southern California.

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 1/18/11

Tuesday, January 18th, 2011

Today’s News Synopsis:

19,528 new and resale houses and condos sold in Southern California last month, according to MDA DataQuick. LPS reports the average foreclosure in California and Nevada has been delinquent 461 days. December’s default rates for first and second mortgages were 2.93% and 1.74%.

In The News:

Dr Housing Bubble – “Financially dreaming in California” (1-16-11)

“Over half of Californians with a mortgage spend more than 30 percent of their income on housing costs. By prudent standards this is spending too much on housing. Of course housing pundits would like you to believe that this is somehow okay and justified but the massive amount of people unable to pay their mortgages in the state tells you that many are unable to support their current home”

Los Angeles Times – “Lawyer advises foreclosed clients to break back into their homes” (1-14-11)

“The 58-year-old attorney admits to breaking into homes at least half a dozen times, including one before with the Earls, leaving the clients to squat in their homes while he defends their legal right to possession. His unconventional methods have gotten him fined by a judge in San Diego, arrested in Newport Beach and threatened with contempt — and jail — in Ventura.”

Brisbane Times – “Fed eyed US housing bubble in 2005, didn’t prick” (1-15-11)

“US Federal Reserve staff and policy makers identified a housing bubble in 2005, and failed to alter a predictable path of interest-rate increases to slow down the expansion of mortgage credit, transcripts from Open Market Committee meetings that year show. Led by then-Chairman Alan Greenspan, the FOMC raised the benchmark lending rate in quarter-point increments to 4.25 per cent from 2.25 per cent at the end of December 2004.”

Market Watch – “Housing: U.S. economy’s Achilles’ heel” (1-15-11)

“CIBC World Markets chief economist Avery Shenfeld was even more pessimistic, saying he believes the weak housing sector will be a drag on consumer spending in the second half of the year. Shenfeld said he is forecasting economic growth to average 2.6% in 2011, as consumers will be forced to be cautious as home prices are declining.”

MBA DataQuick – “Southern California Home Sales End 2010 Up from November, Down from ‘09″ (1-18-11)

“Last month 19,528 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 20.5 percent from 16,208 in November, but down 12.5 percent from 22,328 in December 2009, according to DataQuick Information Systems of San Diego.”

San Francisco – “Homebuilder sentiment index unchanged in January” (1-18-11)

“The National Association of Home Builders said Tuesday that its monthly reading of builders’ sentiment was unchanged in January at 16, where it’s been since November. While it remains the highest reading since June, any reading below 50 indicates negative sentiment about the market. The index hasn’t been above that level since April 2006.”

Yahoo – “What delays a mortgage foreclosure” (1-18-11)

“according to LPS Applied Analytics, in Jacksonville, Fla. Loans in foreclosure in Florida, New Jersey, Hawaii and Maine have been delinquent more than 500 days, on average, while home loans in California and Nevada have been delinquent 461 and 427 days, respectively. In the two speediest states, Nebraska and Wyoming, loans in the foreclosure process are delinquent by an average of 358 days.”

Housing Wire – “Focused on Dodd-Frank, SIFMA sees GSE reform down the road” (1-18-11)

“Substantial reform of Fannie Mae and Freddie Mac remains one or two years away according to a conference call hosted by the Securities Industry and Financial Markets Association. The reason for this is mainly logistics. Reform of the government-sponsored enterprises will need to wait while the rest of the financial services industry begins to put forth its interpretation of the otherwise wide-reaching Dodd-Frank Act.”

Housing Wire – “Mortgage defaults decline in December” (1-18-11)

“For mortgages, the data shows a turnaround in month-on-month behavior. December’s monthly default rates for first and second mortgages stand at 2.93% and 1.74% respectively. In November mortgage defaults were on the rise, with default rates for first and second mortgages at 3.05% and 1.80% respectively.”

Housing Wire – “Fannie Mae, Freddie Mac to consider new fee structure for mortgage servicers” (1-18-11)

“Servicers are currently paid a minimum servicing fee that is part of the mortgage rate, which the FHFA said, is not ‘optimal’ for the best work on nonperforming mortgages for either the borrower or the government-sponsored enterprises. The FHFA said the new structure will improve servicing for borrowers, reduce the financial risk of the servicers and give the GSEs more flexibility when managing the loans.”

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

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The Norris Group Real Estate News Roundup 12/13/10

Monday, December 13th, 2010

Today’s News Synopsis:

22.5% of all mortgages were underwater in the 3rd quarter, according to CoreLogic. The FHA extended deadlines for condo projects seeking to renew their mortgage insurance. Altera Real Estate reports demand for O.C. homes decreased by 12%.

In The News:

Associated Press – “Fewer homeowners underwater in the third quarter” (12-13-10)

“About 10.8 million households, or 22.5 percent of all mortgaged homes, were underwater in the July-September quarter, housing data firm CoreLogic said Monday. That’s down from 23 percent, or 11 million households, in the second quarter.”

ZipRealty - “Prices cut on nearly half of for-sale homes” (12-13-10)

“The share of homes for sale that had experienced at least one price reduction in November jumped 24.1 percent compared to the same month last year, according to a monthly review of multiple listing service listings in 26 major markets conducted by national brokerage ZipRealty.”

Housing Wire – “BarCap: Private sector to boost MBS purchases in 2011″ (12-13-10)

“Private investors could buy as much as $365 billion in agency mortgage-backed securities in 2011, taking over the government’s role in the secondary market, according to the analysts at Barclays Capital.”

Housing Wire – “FHA extends deadlines for condos to recertify mortgage insurance” (12-13-10)

“The Federal Housing Administration extended deadlines for condominium projects seeking to renew their mortgage insurance with the federal agency. New guidelines established by the FHA in 2009 require that condo projects be recertified and approved every two years.”

Housing Wire – “Fed expands TILA scope to loans up to $50,000″ (12-13-10)

“Loans or leases written to consumers for up to $50,000 will be subject to protections under the Truth in Lending Act, up from $25,000, according to a new rule announced by the Federal Reserve Monday. The raised exemption threshold will go into effect July 21, the same day the Consumer Financial Protection Bureau is set to launch. Under the Dodd-Frank Act, the Fed was required to set a new threshold for exempt loans in order expand the protections of TILA.”

Housing Wire – “Amherst Securities: Number of modified, reissued Ginnie Mae loans remains high” (12-13-10)

“The level of Ginnie Mae loans modified and reissued in mortgage-backed securities remains high but probably won’t increase in 2011 from this year, according to one MBS broker-dealer.”

Housing Wire – “Monday Morning Cup of Coffee” (12-13-10)

“In a November letter to regulators, Wells said only mortgages with a more than 30% downpayment should be exempt from the risk-retention rule under Dodd-Frank. Under the reform, federal regulators must determine which mortgages an originator should still be on the hook for after being packaged and sold in the secondary market.”

Orange County Register – “Demand for O.C. homes falls 12%” (12-13-10)

“After remaining the same for the better part of a month, demand dropped by 12% (in the past two weeks), or 311 homes, to 2,382 homes. Last year at this time, demand was at 2,646 pending sales, 264 additional homes compared to today. For the remainder of the year and the first few weeks of the New Year, demand will continue to drop. This is cyclically the slowest time of the year for Orange County real estate.”

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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201-TNG Radio – Alvarez, Cantu, & Solis 11-20-10

Friday, November 19th, 2010

Mike Cantu


Mike Cantu

Expert California Investor

(Full Bio)

 

Tony Alvarez


Tony Alvarez

Investor and REO Mentor

(Full Bio)

 

Rick Solis


Rick Solis

Appraiser/Investor

(Full Bio)

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This week Bruce is joined by Mike Cantu, Rick Solis and Tony Alvarez. Mike Cantu has been an investor in the Inland Empire for over 25 years. He has been a builder, rehabber and property manager. Rick Solis appraises all of The Norris Group’s loans, and he is also an investor. Tony Alvarez has been an appraiser, residential and commercial property buyer and author.

Rick meets with many of tenants in his current buying market. When you talk with tenants, and ask them what they do and don’t like about a property, it helps one understand what they are looking for. Rick will not buy any property without two bathrooms. A property without a garage is practically worthless. Small bedrooms can be deal killers as well.

For Rick’s typical 3 bedroom, 2 bathroom, 1,100 sq feet house, he typically rents for $1,000 per month. If he can squeeze an extra bedroom into the house, then he can raise rents by $100. Rick’s rent rates are $50 less than most landlords.

All of Rick’s houses are upgraded with granite counters and wood laminate floors. Those 2 items seem to attract a lot of quality tenants. Most of Rick’s desert properties do not have yards. Tony calls that “desert landscaping.”

Mike’s rental property criteria is very different from Rick’s. Mike is less concerned with house structure, and more concerned with lot location. Mike has many 2 bedroom, 1 bath houses, and some of them have served as his best rentals. Houses wear down, but dirt goes up in value. Mike is very concerned with buying houses near good school districts. People will overlook the size of their house if they can get a home in a good school district. Mike’s average rent for his 2 bedroom, 1 bath houses is $1,095. He does not lose many tenants.

Tony will not buy condos in his market. The condos in his market are too condensed, and the percentage of rentals to owner occupied properties is not good. Some time ago, Tony was able to buy 2 bedroom, 2 bath condos for $15,000. If prices go down to that level, then he will probably start buying condos again. Tony likes to buy 2 bedroom, 1 bath houses and 3 bedroom, 1 houses.

Tony buys a combination of properties. They range from lower class to upper class properties. He finds that mixing up his inventory allows him to receive a variety of benefits. The last time Tony began investing, 90% of his renters were Section 8. Now approximately 50% of his renters are Section 8.

Rick tries to avoid Section 8, because he loses a couple months of rent waiting for inspectors to come out. He has also found that Section 8 tenants are not quality tenants. Rick says he is not opposed to Section 8 tenants if they can quickly move into the property and pay rent.

Tony believes that Rick’s problems with Section 8 are due to the difference in his market. Rick’s Section 8 tenants were from San Bernardino County. Tony has found that LA County’s Section 8 is more efficient. Also, the extent to which you know the Section 8 workers makes a difference in how quickly they service you.

Mike has no Section 8 tenants. However, he is not opposed to renting to Section 8 tenants. In the past, when Mike had Section 8 tenants, he lost all of them. Almost all of them had a problem with breaking things and not fixing them. Mike will not keep tenants who will not pay for the items they destroy.

After Mike receives an application from a potential tenant, he will give a surprise visit to their house. He checks to see if they keep their properties in good shape. If he is not allowed to come into their current house, then he will reject the potential tenant.

Back in the 80s, Tony developed a good understanding of the rhetoric for how bankers and politicians communicate. You have to carefully analyze what they say to understand what they really mean. Tony believes that they want to release the inventory, but they have a control issue over how the inventory will be released. Unfortunately, bankers are not as motivated to release the inventory now, because they are receiving large sums of money from the government. Tony believes that much of the inventory will be released between now and 2012, because that is an election year. They will want to get the pain out of our memories before the next election. Americans do tend to have short term memories for economic pains, but Tony believes the damage done by this down turn was too deep.

There was a bill that was recently rejected. This bill would have squashed most of the foreclosure cases we are having right now. There probably were some foreclosures where the paper work wasn’t completely done, but if you went back through history and looked at the paper work for every foreclosure, you would probably find just as many foreclosure problems. The bottom line is that if you aren’t making your payments, then you should be foreclosed on.

Mike has noticed a difference in the kind of inventory being released during the second half of this year. They are letting go of strange, derelict inventory. Typically, when Mike looks at newly released inventory, 8 out of 10 will be worth bidding on. Recently, when Mike analyzed the new inventory for his market, only 5 of the 18 were worth bidding on.

Rick doesn’t pay much attention to what people are saying about what is coming to the market. There are too many different opinions for him to take many of them seriously. He would rather just focus on what trends are currently visible in the market.

Tony recently talked to an REO agent who was very worried by some recent news released by Fannie Mae. The news said that Fannie Mae was hiring new agents, but they had to hire a racially diverse group of agents. Also, the news said that the experienced agents would be required to train the new REO agents, or lose their job.

There is a difference between a real REO agent and an imposter. The imposters are bulk buying companies. Some of the imposter companies are named Atlantic and Pacific. If you do research on their listings, they are all owned by one holding company. These guys are buying bulk and then trying to sell at high prices. Also, many of them are buying non-performing notes, not houses. That is not a true REO agent, and the information you will get from them is not accurate.

If you are buying $150 million of notes, that inventory will not hit the market in the typical way. It won’t be an REO that will go to 20 different agents, it will just go to the one company.

As long as Mike is in real estate, he will be a student of it. He goes to 8 to 12 seminars every year. If you work hard on your job, you will get paid money, but if you work hard on yourself, you will earn a fortune. A lot of bubble riders who are still in trouble, and he wonders how much of their failure is due to their lack of education. Mike believes that his success is due to his education. He likes to have a variety of education. He doesn’t want to be limited in any aspect of his education. Mike’s favorite trainer was Jack Miller, who recently died. Bruce is in Mike’s top 4 favorite trainers alongside John Schaub and Peter Fortunato.

Tony does not feel he has taken much education. He has taken some of Mike’s seminars. He got involved in real estate because he listened to a late night infomercial. Tony’s career was all about learning through his mistakes until he met Bruce. Before Tony met Bruce, Tony was only buying REO properties. Bruce taught Tony to look into owner sellers, and how to time markets. Bruce told Tony to hold on to his properties when Tony was about to sell. When Bruce told Tony to sell, Bruce said, “Would you rather sell to a euphoric market or an uninterested market?” Tony earned $3 million from the advice Bruce gave him, so Bruce is the person he listens to the most.

Rick has been reading books and going to seminars since he was a teenager. One of the teachers he listened to when he was younger was Dave Deldado. In the last few years, Rick has stopped going to all other seminars other than Bruce’s. Bruce is in Rick’s market and he respects Bruce’s market timing. Before hearing Bruce’s seminars, Rick was only buying 1 or 2 properties per year, but now he tries to buy 1 or 2 every month.

Thank you Mike Cantu, Rick Solis and Tony Alvarez for being a part of our 200th show.

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 10/22/10

Friday, October 22nd, 2010

Today’s News Synopsis:

33,176 houses and condos were sold in California during September, said MDA DataQuick. Clear Capital claims home prices have dropped 6% in the last 2 months. The serious delinquency rate for Fannie Mae and Freddie Mac was 4.35% in August.

In The News:

DQNews - “California September Home Sales” (10-22-10)

“An estimated 33,176 new and resale houses and condos were sold statewide last month. That was down 3.1 percent from 34,239 in August, and down 17.5 percent from 40,216 for September 2009. California sales for the month of September have varied from a low of 24,460 in 2007 to a high of 68,114 in 2005, while the average is 44,310. MDA DataQuick’s statistics go back to 1988.”

Yahoo - “U.S. foreclosure mess chills investors, clouds market” (10-22-10)

“Investors who have been snapping up foreclosed homes are backing off in the wake of the U.S. foreclosure fiasco, driven by sagging inventory and fears over legal title, and some economists say the trend could hurt the overall housing market.”

Housing Wire – “Clear Capital: Home price drop sudden and dramatic” (10-22-10)

“Clear Capital said a 6%, two-month decline in home prices represents a magnitude and speed not seen since March 2009.”

Housing Wire- “Financial system trust down with Dodd-Frank dissatisfaction” (10-22-10)

“The survey found trust index to be 25% for the third quarter of 2010, a 1% drop from from the all-time high in June. The Financial Trust Index is a quarterly survey conducted by Social Science Research Solutions, a branch of AUS and ICR/International Communications Research. The results come from 1,005 phone interviews nationwide.”

Housing Wire – “FHFA: GSE serious delinquency rate drops 68 bps in August from peak” (10-22-10)

“The combined serious delinquency rate at Fannie Mae and Freddie Mac was 4.35% in August, down 10 basis points from the previous month and 68 bps from the peak in February, according to a report from the Federal Housing Finance Agency.”

Inman - “Yahoo Real Estate still No. 1″ (10-22-10)

“Market share between the two sites remained virtually unchanged. Yahoo Real Estate captured 5.87 percent of traffic to real estate category websites in September while Realtor.com’s market share was 5.76 percent.”

Looking Back:

One year ago, WSJ reported that home inventories across the nation had decreased. Home prices fell .3 percent from July to August 09. A survey from Point2 Technologies revealed that real estate agents and brokers were less confident in the market than they were in August.

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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190-TNG Radio – Peter Wayman 9-4-10

Friday, September 3rd, 2010

Andrew-Waite

Peter Wayman

Senior REO Sales Director for Freddie Mac


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September 17th, 2010, The Norris Group returns with its award winning event I Survived Real Estate 2010. The Norris Group has assembled an incredible line up of industry experts to discuss the state of REO from the inside. Topics will include regulatory intervention and aftermath, bulk buying, myths and facts, and opportunities emerging for real estate professionals. 100 percent of the proceeds support the Orange County affiliate of Susan G. Komen for the Cure. This event would not be possible without generous help from the following platinum partners: Foreclosure Radar and Sean O’Toole, the San Diego Creative Real Estate Investors Association and Bill Tan, Investors Workshops and Shawn Watkins and Angel Bronsgeest, Invest Club for Women and Iris Veneracion and Bobby Alexander, Claudia Buys Houses, The Business Press, Frye Wiles, MVT Productions, and White House Catering.

This week Bruce is joined by Peter Wayman. Peter is the Senior REO Sales Director for Freddie Mac. He oversees the design of sales strategies and how those strategies are applied across the REO portfolio. His group oversees the retail sales process, auctions and investor sales. Peter is responsible for the Affordable Housing Strategy: selling homes to organizations engaged in neighborhood stabilization. Peter came to Freddie Mac with 32 years of executive relocation experience. In that position, he has won national awards and is in the hall of fame.

The major product offered by the relocation industry has been the purchase of the transferee’s home. Peter is accustomed to valuing and selling on a cost plus basis. He does not have to foreclose and evict transferees, but he does have to call executives of companies and tell them the value of their homes. The relocation industry operates globally.

Freddie Mac’s primary method for selling homes is to put them in the hands of great brokers. Also, special incentives are offered to owner occupants to encourage purchasing. Freddie Mac’s focus is to make home buying possible, and to do that by positioning their homes fairly for owner occupants. To effectively use this strategy, homes must be conditioned for financing, buyer’s closing costs must be addressed, and home warrantee programs are offered as well. Freddie is biased towards getting owner occupants into homes.

History shows that if an owner occupant lives in a house, their occupancy improves their neighborhood. Freddie Mac is concerned with neighborhood stabilization. When owner occupants invest their money into a house, they connect more with the community and have more pride in their community.

In 2009, Freddie Mac ended the year with 71% of its homes going to owner occupants. This year, we are slightly under that percentage. We are in a prime selling season now, and Freddie Mac is finishing one of their special programs for owner occupants.

The ratio of 70:30 for owner occupants to other types of owners is considered acceptable by Freddie Mac. Freddie realizes that some of their properties are not currently suitable for occupants. Freddie puts the Neighborhood Stabilization funds into the hands of an NSP grantee for properties in bad condition. The NSP grantee uses the funds to renovate the home, add green energy options to it, and then sell it to an affordable buyer. These homes often receive $30,000 in renovations, which is not something that many private investors can do. Most of these funds are targeting extremely hard hit areas and some homes are even being considered for tear down.

Not all investors do a bad job of renovating properties, but Freddie Mac has to deal with a wide scope of investors. Freddie Mac considers responsible investors to be a viable option for getting rid of inventory.

NSP funds are delivered from a city or county. The largest portions of the funds come from the federal government, but state governments, land banks, and non-profit associations are also engaged in neighborhood stabilization. Freddie Mac is open to working with all of these companies.

Companies with NSP funds have an advantage when looking for properties owned by Freddie Mac. Freddie Mac uses an NCST (National Community Stabilization Trust), which provides access to grantees with NSP funds. The NCST works with a large number of grantees and servicers. It creates an interchange which shows all of the servicer’s properties on a google-type map. The grantees may then look to see if there are properties being offered in their designated census tracks for neighborhood stabilization. They then immediately have the opportunity to ask the servicer for a home’s price. All of this happens during the pre-list phase of moving REO inventory, so grantees have the opportunity to view properties while Freddie Mac is still valuing the properties.

Some cities have had trouble spending their funds for damaged properties. This may be due to the difference in reaction time when compared to a private investor. Some of the NSP-1 funds had to be committed as of today, but there are also NSP-2 and NSP-3 funds. Each grantee takes a different approach on assembling their programs. Some of them got started more quickly than others.

Freddie Mac has been heavily involved in the modification process and in foreclosure alternatives. Peter believes those two tools are becoming much more effective, because the servicers and Freddie Mac are developing more effective automation. Also, staff training has improved, and the real estate community is becoming more educated. All of these things have helped make modifications and foreclosure alternatives more effective.

Banks are beginning to address serious delinquencies. At the end of the 4th quarter of 2009, serious delinquencies peaked at 4.13 percent of all mortgages. This percentage has been coming down for 5 months in a row.

We are also seeing the REO inventory increasing. In January 2009, we had 21,000 REO homes, and in January 2010, we had 45,000. At the end of July 1st, we had 62,000 REOs. That 62,000 represents inventory in redemption, eviction, pre-list, listed, sold and going into closing. Generally speaking, over 50 percent of REO inventory is in redemption, eviction, and pre-list. That number is currently closer to 55 percent.

Peter believes it has been proven that losses are lessened by modifications. The sooner you address the problem, the lower the costs are in the process. A foreclosure should be considered a last resort.

Modifications had a 60 percent failure rate. Peter believes that as the modification process has gone to using written verification and careful coaching, the failure rate has gone down.

In September, Peter will be a part of the I Survived Real Estate 2010 panel. He will be speaking in front of about 400 eager investors, who will be trying to figure out how to get their share of Freddie Mac’s properties, and possibly even get a chance at a bulk purchase.

Peter is very excited to work with this charity program. Freddie Mac has to be primarily concerned with getting rid of properties at the lowest cost to the tax payer. Freddie Mac has discovered that nothing works better than listing properties with a great real estate broker, exposing it to the entire market, having a property priced and conditioned right, and allowing that exposure to drive a retail sale within 90 to 120 days. This focus tends to work extremely well. There are some assets that do not sell within that time frame. When assests don’t sell well, Freddie Mac turns to ballroom auctions and online auctions, and finally to bulk sales for investors. Investor bulk sales are not perceived as having the highest potential recovery rate. Less than 0.5 percent goes through bulk investor sales. Freddie Mac is currently developing a better strategy for bulk sales. There should be more bulk sale activity in the future.

Some states have different real estate problems, and there are some problems that necessitate different solutions. In Florida, Freddie Mac has a waver on REO condo requirements, so Florida condos make great candidates for bulk sales. Properties with Chinese drywall, low values, no insurance options, no occupancy certificates, or environmental problems will be more likely to end up in a bulk sale. Lots of investors contact Freddie Mac asking to buy all the $200,000 properties in California and Arizona. Peter responds to those investors saying, “You mean all those properties that I get multiple offers on within the first two weeks of being listed on the market?” Freddie Mac does not need investors to buy those properties.

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.

Thank you for being a Gold Sponsor for I Survived Real Estate 2010: Adrenaline Athletics, Benton Investment Group, Community RE-Invest Group, Delmae Properties, Elite Auctions, Entrust California, Everlast Photography, Inland Empire Investors Forum, Keystone CPA, Landwood Title, Las Brisas Escrow, Leivas Financial Services, Mike Cantu, North San Diego Real Estate Investors Association, Northern California Real Estate Investors Association, Personal Real Estate Investor Magazine, Realty 411 Magazine, San Jose Real Estate Investor Association, Rick and LeeAnne Rossiter, San Jose Real Estate Investor Association, Starz Photography, Summit Solutions, Tony Alvarez, Wealth Point, and Westin South Coast Plaza.

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The Norris Group Real Estate News Roundup 7/16/10

Friday, July 16th, 2010

Sources:
http://www.latimes.com/business/realestate/la-fi-foreclosures-20100715,0,5786857.story
http://www.boston.com/business/articles/2010/07/09/banks_fight_changes_to_accounting_rules/
http://www.aba.com/Industry+Issues/FASB_advocacy.htm
http://www.dsnews.com/articles/gses-face-lawsuit-over-resistance-to-going-greener-energy-loans-2010-07-15
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-150
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-145
http://www.dsnews.com/articles/senate-approves-landmark-financial-reform-legislation-2010-07-15
http://www.dsnews.com/articles/senate-approves-landmark-financial-reform-legislation-2010-07-15
http://www.reuters.com/article/idUSTRE66E4FP20100715

Today’s News Synopsis:

According to MDA DataQuick, 43,964 new and resale houses and condos were sold in California last month. The California Employment Development Department reports that unemployment levels remained stagnant in June while 400,000 people lost their unemployment benefits. The SEC is charging Goldman Sachs with a $550 million fee for misleading its investors. HR 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act, is expected to be signed. This bill will end the HVCC.

In The News:

DQNews - “California June Home Sales” (7-15-10)

“An estimated 43,964 new and resale houses and condos were sold statewide last month. That was up 7.3 percent from 40,965 in May, and down 0.5 percent from 44,167 for June 2009. California sales for the month of June have varied from a low of 35,202 in 2008 to a peak of 76,669 in 2004, while the average is 50,405. MDA DataQuick’s statistics go back to 1988.”

Los Angeles Times – “California job climate stagnant in June” (7-16-10)

“California’s jobs climate stagnated in June as part-time federal census workers lost their jobs and about 400,000 out-of-work people lost their unemployment benefits. Although the monthly, seasonably adjusted unemployment rate crept down a tenth of a percentage point to 12.3%, the economy lost 27,600 jobs, according to the California Employment Development Department. The state’s unemployment rate was 11.6% in June 2009. Nationally, it hit 9.5% last month.”

Sacramento Bee – “Home Front: Idea to reduce principal is gaining” (7-16-10)

“The financial system, federal government and California’s state government have favored loan modifications, and more recently, short sales. Both are chaotic. Neither has proved equal to the problem of negative equity. About 45 percent of Sacramento-area borrowers still owe more than their houses are worth. About 12 percent of Sacramento-area home loans are delinquent or headed toward foreclosure.”

San Francisco Chronicle – “Bill would shield homeowners’ credit ratings” (7-16-10)

“Struggling homeowners who get loan modifications to stave off foreclosure often discover that their credit score takes a big hit. A bill introduced on Thursday by U.S. Rep. Jackie Speier, D-Hillsborough, would shield homeowner credit ratings after a loan modification.”

Housing Wire – “Goldman to Pay $550m and Reform Subprime Mortgage Investment Activity” (7-15-10)

“The Securities and Exchange Commission (SEC) today announced that Goldman, Sachs & Co. (GS: 146.45 +0.85%) will pay the largest-ever penalty by a Wall Street firm.”

Housing Wire – “House Approves Flood Insurance Reform” (7-15-10)

“The US House of Representatives on Thursday approved a flood insurance reform bill that would reauthorize the National Flood Insurance Program (NFIP) for five years. The provision, which extends the program to Sept. 30, 2015, passed by a wide margin, 329 to 90, with support from both Democrats and Republicans.”

Housing Wire – “Home Asking Prices, Listing Inventory Up in Q210: Altos Research” (7-16-10)

“The June median listing sales price for single-family existing homes was $477,937 in June, down $146, about 0.03%, below the May 2010 median of $478,083 for homes in Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, and Washington DC.”

Bloomberg - “Housing Bubble Leaves $4 Trillion Hangover: Chart of the Day” (7-16-10)

“The bursting of the U.S. housing bubble has left homeowners buried under about $4 trillion of excess mortgage debt, according to Dhaval Joshi, the chief strategist at RAB Capital. The CHART OF THE DAY compares the total amount of home loans outstanding with the value of residential real estate, as compiled by the Federal Reserve, for the past two decades. The latter is adjusted to reflect the average 40 percent debt-to- value ratio that prevailed from 1990 to 2005. Mortgage balances were $3.64 trillion higher than the adjusted figure as of March 31, as shown in the top panel. The actual ratio, which stood at 62 percent at the end of the first quarter, appears in the bottom panel.”

Inman - “Goodbye, Home Valuation Code of Conduct” (7-16-10)

“HR 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act, includes appraisal independence requirements and provides grant funding for state oversight and enforcement of those regulations. The bill creates a new Bureau of Consumer Financial Protection that’s charged — among many things — with drafting new interim final regulations that specifically define acts or practices that violate the bill’s appraisal independence requirements. The regulations are to be drafted within 90 days of the bill’s signing, superseding the Home Valuation Code of Conduct, rules adopted by Fannie Mae and Freddie Mac in May 2009.”

Looking Back:

One year ago, 44,167 new and resale houses and condos were sold statewide in June. The Commerce Department announced that housing starts increased by 3.6 percent. The government was considering a proposal to allow homeowners to stay in their home as renters after a foreclosure. Voit Real Estate Services reported that office vacancies increased to 16.3% from April to May 2009.

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The Norris Group Real Estate News Roundup 6/28/10

Monday, June 28th, 2010

Today’s News Synopsis:

Statistics from the Federal Reserve show the median borrower who ‘strategically’ defaults doesn’t walk away from the mortgage until the amount owed exceeds the value of the home by 62%. McGraw-Hill Construction reports new construction starts increased 3% in April. According to CoreLogic, more than 11 million borrowers currently owe more on their mortgage than it is worth. Experian statistics show that 19 percent of all defaults in 2009 were strategic.

In The News:

Press Enterprise – “Crash opens market for luxury apartments” (6-26-10)

“While homebuilders are aiming at a more frugal consumer by cutting frills, some apartment developments in San Bernardino and Riverside counties are going upscale with features like granite countertops and hardwood floors and rents comparable to a home mortgage. The Lewis Group of Cos., an Upland-based developer of master-planned communities and apartments, figures that partly because many people have been burned by the housing crash, there is demand from prospective tenants moving out of houses who want and can afford a house-like apartment experience.”

Chicago Tribune – “Moral bankruptcy?” (6-27-10)

“Some have struggled unsuccessfully to keep their homes, and others have just walked away. Phillips decided he wanted revenge and was willing to ruin his credit record for it. When a short sale didn’t work out as planned, the 32-year-old Chicagoan opted for Chapter 7 bankruptcy liquidation, a move that will leave Phillips with little except for the scant possessions in his one-bedroom condo. It also will leave his lender, Chase, with little except for, eventually, a condo that has lost value. Meanwhile, Phillips continues to live there, mortgage-free.”

Los Angeles Times – “Undone by their dreams” (6-26-10)

“In the last four years, according to the San Bernardino County assessor’s office, 373 of the 941 single-family homes in Mission Crest — nearly 40% — have been foreclosed on. Thirty-five have gone through foreclosure more than once. Properties that once sold for nearly $400,000 are worth less than $200,000.”

Mercury News – “Santa Clara County assessor adds Web tools to help homeowners” (6-28-10)

“More than 100,000 residents will be given access to a special website — tracking home sales by neighborhood — where they can see precisely why the assessor’s office decided to assign a particular home its worth.”

Wall Street Journal – “How Far Underwater Do Borrowers Sink Before Walking Away?” (6-28-10)

“At what point do borrowers who owe more than their homes are worth decide to stop paying the mortgage? A new study from economists at the Federal Reserve Board aims to answer that question. The research found that the median borrower who ‘strategically’ defaults doesn’t walk away from the mortgage until the amount owed exceeds the value of the home by 62%.”

Housing Wire – “Monday Morning Cup of Coffee” (6-28-10)

“The House Financial Services Committee issued a statement Sunday urging ‘bold action’ on the Dodd-Frank bill, the reconciled financial reform bill agreed to by a Congressional committee last week and named after Sen Christopher Dodd (D-CT) and Rep Barney Frank (D-MA). The final bill now travels to separate House and Senate votes and then, upon passage by Congress, to a Presidential signature into law.”

Housing Wire – “Surge in Nonresidential Building Boosts May Construction Starts” (6-28-10)

“New construction starts increased 3% from April to May, according to a monthly survey by McGraw-Hill Construction. The seasonally adjusted annual rate of total construction starts was $406.3bn in May, up 3% from $392,988bn in April. For the first five months of 2010, the unadjusted value of total construction starts was $162bn, down 2% from $165bn during the same period of 2009.”

Housing Wire – “The Slippery Slope of Short Sales” (6-28-10)

“More than 11 million borrowers currently owe more on their mortgage than it is worth, according to CoreLogic (CLGX: 18.11 +0.28%)—and this group of borrowers would love nothing more than to replace their current underwater mortgage with whatever the accepted ‘short sale price’ is deemed to be. I don’t know that such a response on the part of borrowers could be deemed irrational, either. Many will ask themselves why they have a mortgage at a higher amount, especially if the bank is willing to sell the house to another buyer for less money.”

Housing Wire – “G20 Applauds Dodd-Frank Bill in Pushing its own Global Financial Reform” (6-28-10)

“The meeting of G20 nations concluded this weekend in Toronto with communiqués reflecting a strong support for the US financial reform, called the Dodd-Frank bill. Indeed, information released from the summit show a mix of ambitious plans for growth, mixed with further calls to reduce spending, especially among countries with higher debt burdens.”

Housing Wire – “Experian Finds 19% of Mortgage Defaults in Q209 are Strategic” (6-28-10)

“Of all mortgage delinquencies in the second quarter of 2009 (Q209), nearly one in five — or 19% — were considered strategic defaults, according to the latest study of default trends by information services firm Experian.”

Bloomberg - “Commercial Mortgages Fail to Pay as Lending Increases” (6-28-10)

“Between 50 percent and 60 percent of loans on skyscrapers, hotels, shopping malls and apartment complexes failed to refinance within a few months of their maturity date this year, Bank of America Merrill Lynch analysts said in a report. That compares with 15 percent to 20 percent in 2008, according to the analysts led by Roger Lehman in New York. About $11 billion in loans, or one-third of the 2010 total, had hit their expected maturity dates through late May.”

Bloomberg - “Fannie Mae, Freddie Mac Should ‘Unwind’ Portfolios, Pimco Says” (6-28-10)

“Fannie Mae and Freddie Mac, the housing-finance companies supported by U.S. taxpayers, should take advantage of demand for government-backed mortgage debt and sell their holdings, according to Pacific Investment Management Co. ‘Since the government’s going to want to unwind them at some point anyway, why not do it at the best levels ever?’ Scott Simon, the mortgage-bond head at Newport Beach, California-based Pimco, manager of the world’s biggest fixed- income fund, said in a telephone interview.”

Inman - “Top 10 states for pending tax credit closings” (6-28-10)

“NAR estimates as many as 180,000 homebuyers who were under contract by April 30 may miss the June 30 closing deadline. To prod lawmakers into find a way to extend the deadline, NAR released a breakdown of how many home purchases are affected in each state.”

Looking Back:

One year ago, Freddie Mac estimated that sales of new and existing homes might increase to an annual pace of 5.1 million in the 3rd quarter. Real Capital Analytics forecasted that $16 billion of office transactions would be completed by the end of 2009. The number of Orange County property owners disputing their taxes jumped 23% near last year’s deadline.

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 6/18/10

Friday, June 18th, 2010

Sources:

http://www.dsnews.com/articles/house-republicans-want-penalties-for-strategic-defaulters-2010-06-17

http://www.housingwire.com/2010/06/09/congress-to-consider-fha-reform-mortgage-insurance-hike

http://www.govtrack.us/congress/bill.xpd?bill=h111-5072

http://www.housingwire.com/2010/06/15/reid-urges-3-month-extension-of-homebuyer-tax-credit

http://www.housingwire.com/2010/06/16/mortgage-defaults-foreclosures-drop-across-california-foreclosureradar

http://www.dsnews.com/articles/fhfa-orders-fannie-freddie-to-delist-stock-from-nyse-2010-06-16

http://www.dsnews.com/articles/fbis-mortgage-fraud-crackdown-expected-to-yield-hundreds-of-arrests-2010-06-14

http://www.fbi.gov/pressrel/pressrel10/financialfraud_061710.htm

http://www.dsnews.com/articles/fitch-projects-steep-re-default-rates-on-hamp-modifications-2010-06-16

Today’s News Synopsis:

Statistics from MDA DataQuick shows 40,965 new and resale houses and condos were sold statewide last month. The state Franchise Tax Board has received applications claiming about 80 percent of the funds allocated for the home buyer tax credit. Mortgage brokers and realtors are complaining that the HVCC has produced low-ball appraisals that have blown up deals, while appraisers argue the change has harmed appraisal quality. A survey from Coldwell Banker Real Estate shows that 52 percent of single homeowners prefer buying in suburb areas.

In The News:

DQNews - “California May Home Sales” (6-18-10)

“An estimated 40,965 new and resale houses and condos were sold statewide last month. That was up 9.3 percent from 37,481 in April, and up 4.9 percent from 39,051 for May 2009. California sales for the month of May have varied from a low of 32,223 in 1995 to a peak of 67,958 in 2004, while the average is 47,024. MDA DataQuick’s statistics go back to 1988.”

San Francisco Chronicle – “First-time home-buyer credit may vanish soon” (6-18-10)

“The state Franchise Tax Board has received applications claiming about 80 percent of the funds allocated for the credit. Although it’s hard to predict, tax board spokeswoman Denise Azimi says the credit could be gone within a few weeks.”

Wall Street Journal – “Realtors, Brokers Target Home-Appraisal Rule” (6-18-10)

“The mortgage-broker and real-estate industries are pushing to have a measure that would kill new home-appraisal rules inserted into pending legislation to overhaul financial-sector regulation. The Home Valuation Code of Conduct, adopted in May 2009 to ensure appraiser independence, bars mortgage brokers and bank loan officers from selecting appraisers. Mortgage brokers and realtors complain that the rules have produced low-ball appraisals that have blown up deals, while appraisers argue the change has harmed appraisal quality.”

Inman - “Singles flock to suburbs” (6-18-10)

“While young Millennials seem to have a preference for suburbs, they’re not the only ones. Singles of all ages are more likely to buy a home in the burbs, according to the results of a survey by national brokerage company Coldwell Banker Real Estate. The company conducted a national online survey of 1,050 single homeowners in April. It found that 52 percent of singles chose to buy in suburbia rather than getting ‘bachelor or bachelorette pads’ in urban or rural areas.”

Housing Wire – “GSEs Plan Chinese Drywall Mortgage Forbearances” (6-18-10)

“Under the authority of its ‘Unusual Hardships’ policy, Fannie is directing its mortgage servicers to provide borrowers impacted by Chinese drywall up to six months of forbearance on their monthly mortgage payment and to minimize the derogatory credit impact for borrowers who are current on their loans and complying with the terms of the forbearance.”

Housing Wire – “FinCEN Says Foreclosure Scam Reports Rose Dramatically in 2009″ (6-18-10)

“The number of suspicious activity reports (SARs) from financial institutions related to foreclosure scams dramatically increased last year, according to a new report from the Financial Crimes Enforcement Network (FinCEN). The report also noted that the type of foreclosure scams also evolved during the reporting period, which covered Jan. 1, 2004, through Dec. 31, 2009. FinCEN said foreclosure rescue scams increased substantially in the last eight months of 2009.”

Orange County Register – “Pimco: No quick recovery for big properties” (6-18-10)

“Distressed properties may be hard to sell, making a quick recovery unlikley. Commercial real estate prices will remain 30% to 40% below 2007 peaks for three to five years and may not return to 2007 peaks until end of the decade.”

Realty Times – “Developing The Skill Of Qualifying Buyers” (6-18-10)

“The longer the time the buyer has been looking, the lower the motivation. We have to wonder why a buyer has not been able to find a home in six months. Are they looking for something that doesn’t exist? Are their expectations too high for the marketplace? Do they just enjoy the process of kicking foundations? When someone said to me that they had been looking for more than 90 days, I wanted to know what they were looking for and the reasons why they hadn’t found it yet.”

Realty Times – “Little Change Seen in Mortgage Rates This Week” (6-18-10)

“Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.75 percent with an average 0.7 point for the week ending June 17, 2010, up from last week when it averaged 4.72 percent. Last year at this time, the 30-year FRM averaged 5.38 percent.”

Realty Times – “How To Make Buyers Want Your Home” (6-18-10)

“Countertops are fixtures in homes. So making sure that you select the best material to endure the daily wear and tear is important. If we’re talking about the kitchen, for instance, there are many options: granite, tile, recycled glass (for a green option), solid steel, composite stone, butcher block, laminate, and even concrete. Yes, that last one sounds surprising but concrete is being used for countertops and laminate isn’t necessarily trying to mimic other materials anymore. Instead, homeowners are embracing laminate’s own unique high-tech look.”

Looking Back:

One year ago, the median price paid for a home in the nine-county Bay Area region rose to $341,500. The Federal Reserve’s total amount of commercial/residential mortgage debt decreased by $33 million from 2008 to 2009. Economists from Chapman University claimed that an economic recovery would begin during the second half of 2009. The average 30-year FRM rate dropped to 5.38 percent.

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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