The NAR said existing home sales rose 2.7% in January. The FHA’s REO inventory has increased 47% year over year.  A California judge upheld the rights of the Mortgage Electronic Registration Systems to the trust deed, granting MERS the right to foreclose. A Federal Reserve economist predicts the government will soon provide an alternative to the national homebuyer tax credit

In The News:

NAR - “Existing-Home Sales Rise Again in January” (2-23-11)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010.”

Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (2-23-11)

“mortgage loan application volume, increased 13.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 14.8 percent compared with the previous week. The Refinance Index increased 17.8 percent from the previous week. The seasonally adjusted Purchase Index increased 5.1 percent from one week earlier.”

Inman - “New CoreLogic market reports incorporate MLS data” (2-23-11)

“CoreLogic’s Listing and Market Activity Report — the first in a series of new products the company is developing to generate revenue from the data it receives from cooperating MLSs — provides key information including updated listings, comparable sales, property valuations, days on market, price trends and inventory.”

Housing Wire – “FHA REO inventory up 47% from one year ago” (2-23-11)

“The Federal Housing Administration held 60,739 properties repossessed through foreclosure on its books as of December 2010, up 47% from the year before.”

Housing Wire – “Freddie Mac finalizing major revamp of mortgage servicers” (2-23-11)

“Freddie Mac is in the final stages of changing how its 1,400 mortgage servicing companies handle its loans, and will implement a new scorecard measuring their performance. Furthermore, the government-sponsored enterprise is announcing that it will case review the way servicers treat delinquent borrowers, in order to ensure quality control.”

Housing Wire – “Bank failures hit 18-year high in 2010″ (2-23-11)

“The Federal Deposit Insurance Corp. held 884 financial institutions on its ‘Problem List’ as of the end of 2010, and the 157 insured banks that failed was the highest amount since 1992.”

Housing Wire – “MERS rights upheld in largest foreclosure state” (2-23-11)

“An appellate judge in California last week upheld the rights of the Mortgage Electronic Registration Systems to the deed of trust, giving MERS the right to foreclose, according to court documents.”

Housing Wire – “Fannie Mae to start grading mortgage servicers” (2-23-11)

“Fannie Mae will launch a new program for evaluating the performance of its mortgage servicers over the next 30 days. The Servicer Total Achievement and Rewards (STAR) program will gauge how servicers support the housing recovery and keep homeowners out of foreclosure.”

Housing Wire – “Fed economist pushes homebuyer tax credit alternative” (2-23-11)

“A Federal Reserve Bank of Cleveland research economist predicted Wednesday that the government would soon provide an alternative to the national homebuyer tax credit that expired in April.”

Bloomberg - “Existing Home Sales in U.S. Probably Fell in January From Seven-Month High” (2-22-11)

“Sales of U.S. previously owned homes probably dropped in January from a seven-month high, showing any recovery will take time to develop, economists said before a report today. Purchases decreased 1.1 percent from December to a 5.22 million annual rate, according to the median forecast of 73 economists surveyed by Bloomberg News.”

Looking Back:

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.

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.

A Survey from Harris Interactive shows 70% of Americans aspire to homeownership. According to S&P/Case-Shiller, national home prices fell 4.1% in the 4th quarter of 2010. FNC Residential seems to confirm this saying home prices fell 2.2% in December. CB Richard Ellis Group expects office rents to increase this year.

In The News:

Ventura County Star – “Apartments can be good investment as more people rent” (2-19-11)

“While construction in Ventura County has taken a significant hit since the downturn began, shedding about 7,700 jobs from June 2007 to June 2010, the pain has been uneven. Single-family homes have been hit hard and condominiums even harder, said Dawn Dyer, president of Dyer Sheehan Group, a Ventura real estate consulting firm.”

Los Angeles Times – “Homeownership loses its luster” (2-19-11)

“Two-thirds of Americans still see a home purchase as a safe investment, but that’s down from 83% in 2003, according to a study by Fannie Mae. Homeownership has fallen to 66.5% of the adult population, down from 69.2% in 2004. A Harris Interactive polls says 70% of Americans aspire to homeownership, down from 77% a year ago.”

San Francisco Chronicle – “Consumer Confidence Index hits 3-year high” (2-22-11)

“The Conference Board says its Consumer Confidence Index climbed to 70.4 this month, up from a revised 64.8 in January, hitting its highest level since February 2008. It was the index’s fifth consecutive monthly increase. The figure topped economists’ expectations of a reading of 65, according to FactSet.”

CNN - “Home prices near 2009 lows — and may fall more” (2-22-11)

“National home prices fell 4.1% during the last three months of 2010, compared with 12 months earlier, according to the latest report from the S&P/Case-Shiller home price index, a closely watched indicator of market trends. They were down 1.9% compared with three months earlier.”

Housing Wire – “Fitch Solutions subprime credit default swap prices highest since October 2008″ (2-22-11)

“Analysts said the firm’s index for subprime swaps rose 5.2% in January on top of increases the prior two months, including a 7.2% gain in December. Fitch said the 2004 and 2007 vintages performed well last month with returns of more than 7% although constant default rates average 20% higher for the swaps from 2007.”

Housing Wire – “Moody’s finds commercial real estate eluding recovery” (2-22-11)

“After three consecutive months of increases, commercial real estate prices fell 0.9% in December, according to Moody’s Investors Service.”

Housing Wire - “Foreclosure sales weigh down home prices in 23 markets” (2-22-11)

“Home prices in 23 U.S. metropolitan areas fell 2.2% in December, the largest one-month drop for fiscal 2010, and a sign that foreclosed properties continue to weigh down home values across the nation, the FNC Residential Price Index revealed Monday.”

Bloomberg – “U.S. Office Rent Growth to Be ‘Modest’ in 2011, CB Richard Says” (2-22-11)

“U.S. office rents will increase for the first time in three years in 2011, with growth ‘modest and limited to key markets’ before a recovery accelerates in 2012, according to CB Richard Ellis Group Inc.”

Looking Back:

One year ago, Moody’s reported that commercial property prices increased by 4.1 percent in December. A survey showed that 87 percent of homebuilders expected to lose money due to the new FHA guidelines. Short sales accounted for 15.9% of home purchases in January 2010. Janet Yellen predicted the U.S. economy would perform below potential throughout this year and the next.

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.

The CBIA reports total building permits issued during 2010 increased 23% from 2009. Statistics from Trulia show that owning a home is cheaper than renting one in 72% of the largest cities in the United States. Commercial property values rose 0.6% in November, according to Moody’s.

In The News:

Los Angeles Times – “Estimate of mortgage interest tax deduction’s effect on federal deficit is lowered” (1-23-10)

“$88 billion less in revenue losses are now projected over the next three fiscal years — than the committee estimated early in 2010.”

CBIA - “It’s Official: 2010 is Second-lowest Year on Record for Homebuilding in California” (1-24-10)

“CBIA said just 44,601 permits were issued statewide last year for new homes, apartments, condominiums and townhomes, up 23 percent from 2009, but down 31 percent from 2008, which had held the distinction of the second-lowest total on record with 64,962 permits issued. Records began being kept in 1954 with the lowest yearly total set in 2009 with 36,421 permits issued.”

Inman - “Cheaper to buy than to rent in 72% of largest U.S. cities” (1-24-10)

“Despite the rising number of renters across the country, it is cheaper to buy a home rather than rent one in 72 percent of the 50 largest cities in the U.S., according to an index released by real estate search and marketing site Trulia.”

New York Times – “Mortgage Giants Leave Legal Bills to the Taxpayers” (1-24-10)

“Since the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending the mortgage finance companies and their former top executives in civil lawsuits accusing them of fraud.”

Housing Wire – “Moody’s CPPI rose 0.6% for November, down 4.3% since May” (1-24-10)

“The price of commercial property rose 0.6% in November, marking the third-consecutive month of gains following sharp declines for the previous three months, according to Moody’s Investors Service.”

Housing Wire – “Campbell Surveys: Strong distressed property sales bookend robo-signing debacle” (1-24-10)

“First-time homebuyer activity remained relatively strong last month, though still near historic lows, as purchasers rushed to close transactions before interest rates rise further, according to housing industry consultancy group Campbell Surveys. In December, the firm’s HousingPulse distressed property index shows these transactions make up 47.2% of the market, up from 44.5% in November and nearly matching the 47.5% peak reached in September.”

Housing Wire – “JPMorgan: Annual homes sales must average 5.5 million to absorb liquidations” (1-24-10)

“JPMorgan Securities said existing home sales need to average about 5.5 million units a year to absorb a projected 2.25 million to 2.5 million in liquidations.”

Orange County Register – “Demand for O.C. homes jumps 10%” (1-24-10)

“Demand, the number of new pending sales over the prior month, increased by 10% in the past two weeks, adding an additional 194 homes, and now totals 2,154 pending sales. That’s virtually identical to 2009 when it posted 2,146. Last year, there were 393 additional pending sales, but everybody was poised to take advantage of the $8,000 first time home buyer tax. From here, expect demand to continue to improve as the market prepares to enter the spring market, the strongest time of the year for Orange County housing.”

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.

The CBIA reports housing production decreased 28% in October. National existing home sales declined 2.2%, and California home sales declined 3.5%, according to data from the NAR and CAR. Zillow claims interest rates fell again after last weeks sudden gain. Statistics from Lender Processing show foreclosures fell 36% in October.

In The News:

CBIA - “California Housing Production Continues Decline in October, CBIA Announces” (11-23-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,108 total housing units in October, down 28 percent from the same month a year ago and down 28 percent from September. Permits for single-family homes totaled 1,364, down 37 percent from October 2009 and down 21 percent from the previous month, while multifamily permits totaled 744, down 3 percent from a year ago and down 39 percent from September.”

NAR - “Existing-Home Sales Decline in October Following Two Monthly Gains” (11-23-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 2.2 percent to a seasonally adjusted annual rate of 4.43 million in October from 4.53 million in September, and are 25.9 percent below the 5.98 million-unit level in October 2009 when sales were surging prior to the initial deadline for the first-time buyer tax credit.”

CAR - “California home sales decline from previous month, year” (11-23-10)

“Statewide home resale activity declined 3.5 percent in October to a seasonally adjusted annualized rate of 450,360, down from September’s revised pace of 466,930, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. The October pace was down 19.6 percent from the revised 560,390 sales pace recorded in October 2009. The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.”

Housing Wire – “Zillow: 30-year mortgages head back down after one-week increase” (11-23-10)

“After a one-week turn around in mortgage rates, the 30-year, fixed-mortgage rate fell again to 4.27%, according to the Zillow Mortgage Marketplace weekly update.”

Housing Wire – “FHFA: 30-year mortgages drop to new low of 4.46% in October” (11-23-10)

“The average interest rate on a 30-year fixed-rate mortgage was 4.46% in October, a drop of 12 basis points from September when the rate was 4.58%, according to the Federal Housing Finance Agency.”

Housing Wire – “Freddie Mac delinquencies increase for first time since February” (11-23-10)

“Freddie Mac’s 90-plus day delinquency rate increased for the first time since February, according to the government sponsored enterprise’s monthly summary. The delinquency rate for single-family residences was 3.82% in October, up from 3.8% in September.”

Housing Wire – “Bank earnings skyrocket in 3Q as FDIC problem list nears 17-year high” (11-23-10)

“Third-quarter earnings at institutions insured by the Federal Deposit Insurance Corp. continue to get stronger even as the number of banks on the regulator’s problem list nears the highest level in 17 years.”

Bloomberg - “U.S. Office Rebound to Be Delayed by `Shadow’ Space, Berkeley’s Rosen Says” (11-23-10)

“Unoccupied ‘shadow inventory’ accounts for 3 percent to 5 percent of total business leases, and that space will be filled before firms sign new rental agreements, Rosen, chairman of Berkeley’s Fisher Center for Real Estate and Urban Economics, said at a conference in San Francisco. Cloud computing and other tech advances let employees work away from offices, further reducing space needs, he said.”

Bloomberg - “Foreclosures of U.S. Homes Fell 36% After Freeze, Lender Processing Says” (11-23-10)

“Banks seized 79,886 homes, down 36 percent from a record 124,051 in September and the lowest number since May 2009, the Jacksonville, Florida-based real estate data company said in a report today. Lender Processing bases its figures on information collected from loan servicers at the time of foreclosure.”

Looking Back:

One year ago, the NAR reported that existing-home sales increased by 10.1 percent in October. Statistics showed that California workers, who earned the national median income, could afford 59.1 percent of the new and existing homes during the 3rd quarter of 2009. Multifamily lenders provided $88 billion in new financing for apartment buildings with 5 or more units during 2008.

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.

California government agencies got rid of 37,300 jobs in September. NAR reports existing home sales increased 10% last month. 47.5% of sales performed by agents last month were from distressed homes. U.S. home prices decreased 1.5% from a year ago, according to CoreLogic.

In The News:

Los Angeles Times – “Government job cuts ravage California” (10-23-10)

“Weighed down by a struggling economy, government agencies in California shed 37,300 workers last month — more jobs than were lost in the private sector — as cities and counties made their biggest payroll cutbacks since at least 1990.”

CBIA - “California Housing Starts Post Decline in September, CBIA Announces” (10-25-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,562 total housing units in September, down 16 percent from the same month a year ago and down 31 percent from August. Permits for single-family homes totaled 1,604, down 30 percent from September 2009 and down 14 percent from the previous month, while multifamily permits totaled 958, up 27 percent from a year ago but down 48 percent from August.”

NAR - “September Existing-Home Sales Show Another Strong Gain” (10-25-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, jumped 10.0 percent to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 million-unit pace in September 2009 when first-time buyers were ramping up in advance of the initial deadline for the tax credit last November.”

New York Times – “Foreclosures Had Errors, Bank Finds” (10-25-10)

“Even as Bank of America begins to restart foreclosure proceedings in 23 states on Monday, the bank confirmed that it had discovered errors, including incorrect data and misspelled names, in the paperwork it has reviewed.”

Housing Wire – “Monday Morning Cup of Coffee” (10-25-10)

“In his weekly address, President Obama said the coming financial reform will defend the interests of the middle class, as the Consumer Financial Protection Bureau will guard against unfair practices in mortgages and foreclosures.”

Housing Wire – “Bernanke: Federal banking agencies reviewing mortgage servicing operations” (10-25-10)

“Federal banking agencies are conducting an in-depth review of practices at the nation’s largest mortgage servicing operations as a result of reported irregularities in foreclosure practices, Federal Reserve Chairman Ben Bernanke said Monday. Preliminary results are expected next month.”

Housing Wire – “Real estate agents surveyed say distressed home sales nearly half of market” (10-25-10)

“Distressed home sales took up 47.5% of the total home purchases in September, up from 45.7% in August and 44.8% a year ago, according to a survey of more than 3,000 real estate agents. Campbell Surveys and Inside Mortgage Finance tapped a network of agents across the country to determine home sales and mortgage patterns.”

Housing Wire – “Fitch Ratings assigned triple-A to $735.9M Wells Fargo issue” (10-25-10)

“Fitch Ratings assigned its triple-A rating to most classes in a coming $735.9 million issue of commercial mortgage-backed securities by Wells Fargo.”

Housing Wire – “S&P: Defaults on CMBS loans to peak beyond 2011″ (10-25-10)

“S&P studied commercial real estate loans in CMBS it rates through June 2010. Roughly 1,200 CMBS loans defaulted in the first half of 2010 and should pass the 2,138 that occurred throughout 2009. Between January 2009 and June 2010, more than 3,300 defaulted for a cumulative default rate of 9.4% of those loans studied.”

Housing Wire – “CoreLogic home price index drops for first time in 2010″ (10-25-10)

“Home prices in the U.S. dropped 1.5% in August from a year ago, the first annual drop in prices measured in the CoreLogic (CLGX: 17.99 0.00%) Home Price Index in 2010.”

Housing Wire – “Obama housing scorecard: Market fragile with signs of stabilization” (10-25-10)

“The U.S. housing market remains fragile but is showing some signs of stabilization, according to the Obama administration’s 2010 October housing scorecard. Rates for 30-year, fixed-rate mortgages remain at all-time lows, helping 7.1 million homeowners refinance since April 2009 and resulting in $12.7 billion in homeowner savings, the scorecard noted.”

Bloomberg - “Bair Says Regulators Will Uncover More Flaws in Foreclosures” (10-25-10)

“Regulators are likely to discover more problems related to loan servicing by some of the biggest banks as they probe claims that documents were mishandled, Federal Deposit Insurance Corp. Chairman Sheila Bair said.”

Bloomberg - “Mortgage Lenders Say `Enough Is Enough’ as Buybacks Curb Loans” (10-25-10)

“Home lenders are making it tougher to get loans as investors step up demands for refunds on defective mortgages, damaging the housing market, executives said today at an industry conference.”

Bloomberg - “U.S. Mortgage Modifications Slow as Fewer Borrowers Qualify, Treasury Says” (10-25-10)

“An additional 27,840 delinquent borrowers qualified for permanent loan modifications through the Treasury’s Home Affordable Modification Program, bringing the total to 495,898. The 5.9 percent increase from August was the smallest gain since at least September 2009.”

Bloomberg - “Refinancing Surge Lifts Banks Amid Foreclosure Scrutiny” (10-25-10)

“Wells Fargo & Co., the biggest U.S. mortgage lender, received $194 billion of loan applications in the third quarter, the second-most in its history, Chief Financial Officer Howard Atkins said last week. About 80 percent were to refinance. Bank of America Corp. CFO Charles Noski said lending margins are up and demand should remain robust through yearend.”

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.

The CBIA reports 2,454 new homes and condominiums were closed statewide in June, compared to 3,848 a year earlier. A survey from Trulia shows that 68% of renters believe they will have to wait at least two years before even considering buying a home. According to HUD, 616,839 HAMP modifications have been canceled and 434,716 modifications have been made permanent since the program began. The Congressional Budget Office expects the Troubled Asset Relief Program to cost a total of $66bn.

In The News:

Daily Bulletin - “Uncertain times” (8-19-10)

“Norris said a larger number of expensive homes thrown into the mix of homes sold this year may be skewing the median price up, rather than an overall price increase in homes. Norris also said home affordability is ‘off the charts’ but it does not necessarily translate to a greater demand to buy homes. Because of the real estate crash, more people are afraid to go to the finish line with home purchases, he said.”

CBIA - “California New-Home Market Continues Struggle in June, CBIA Announces” (8-23-10)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that statewide new-home closings in June were off 36 percent from a year ago. During the month, 2,454 new homes and condominiums were closed across the state, compared to 3,848 a year earlier. Closings of single-family homes were down by 17 percent, while sales of townhomes were off by 57 percent and sales of condominiums were 67 percent lower than a year ago.”

Orange County Register – “Landlords pray for jobs” (8-21-10)

“I’m still concerned about future job growth and global market conditions that we don’t have control over. Unfortunately, our improvement is a condition of the housing and credit markets and reduced multifamily inventory, not significant job growth. Would-be home buyers who are no longer able to qualify to purchase a home, former home owners who lost their homes and new wage earners are sustaining our improved fundamentals. We will need consistent and sustainable job growth going forward.”

Orange County Register – “A good time to be a landlord?” (8-22-10)

“A new survey by Trulia.com shows that 1 in 4 renters say they’ll never purchase a home, and of those who will, 68% say it’ll take more than a couple of years to happen.”

Housing Wire – “Housing’s Second Leg Down” (8-23-10)

“Home prices have fallen 34% from their peak in the middle of 2006, according to Standard & Poor’s HPI data — but is that enough? Or is there further to go? How much further could we fall?”

Housing Wire – “HAMP Trial Cancelations Catching up to Permanent Modifications” (8-23-10)

“The Making Home Affordable Program (HAMP) initiated 1.3m trials as of July 2010, but is having difficulty retaining program participants through the process of making their modifications permanent. According to the July Servicer Performance Report released by the US Department of Housing and Urban Development (HUD), 616,839 modifications have been canceled while 434,716 modifications have been made permanent throughout the program’s lifetime.”

Housing Wire – “TARP Losses Recalculated to $66bn as GSE Outlook Improves” (8-23-10)

“The Congressional Budget Office (CBO) projected Friday the total cost of Troubled Asset Relief Program (TARP) over its lifetime would be $66bn. This is down from the $109bn lifetime cost projected in March. Outlays for Fannie Mae and Freddie Mac will fall from $96bn in 2009 to $41bn this year, the CBO estimates, mostly because the two entities are expected to recognize fewer losses on their mortgage investments and guarantees.”

Housing Wire – “Econoday Reports Swings in Housing Starts Due To Multifamily Volatility” (8-23-10)

“July housing starts rose 1.7% to 546,000 from June’s revised figure of 537,000, which is the lowest level since October. The June revision and volatility in the multifamily component led to the monthly gain, according to Mark Rogers, senior economist at the Calif.-based research firm.”

Housing Wire – “Monday Morning Cup of Coffee” (8-23-10)

“The Office of the Comptroller of the Currency (OCC) released Friday a list of Community Reinvestment Act (CRA) performance evaluations for 39 national banks and insured federal branches of foreign banks. Of the banks, nine received an outstanding rating, 30 received a satisfactory rating and none needed to improve. None were of substantial noncompliance.”

Housing Wire – “Strengthening CRE Market Pushes Defeasance Levels Up: Moody’s” (8-23-10)

“Moody’s said loans originally secured by multi-family properties saw the highest level of defeasance during the first six months, accounting for 46% of total defeasance. Retail properties represented 22% of all defeasance for the period with lodging properties at 17%. And 61% of all defeased loans during the period had two years or less remaining on the loan. Defeasance activity is when a borrower in a commercial real estate securitization substitutes some type of capital-generating collateral – often Treasury securities – in lieu of a hard payment.”

Bloomberg - “Bernanke Must Raise Benchmark Rate 2 Points, Rajan Says” (8-23-10)

“Raghuram Rajan accurately warned central bankers in 2005 of a potential financial crisis if banks lost confidence in each other. Now the International Monetary Fund’s former chief economist says the Federal Reserve should consider raising rates, even as almost 10 percent of the U.S. workforce remains unemployed.”

Bloomberg - “Housing Slide in U.S. Threatens to Drag Economy Into Recession” (8-23-10)

“‘If foreclosures continue to mount and depress home prices, that could send the economy back into a recession,’ said Celia Chen, an economist who tracks the industry for Moody’s Analytics Inc.”

Orange County Register – “‘How to torpedo your short sale’” (8-23-10)

“Many of the lenders won’t pay past due HOA dues, and the short sale can’t be closed without bringing the HOA dues current. If you can, keep your HOA dues current or plan to bring money to close to pay for them.  Sometimes the lender will pay them, sometimes the buyer will, and sometimes we need can succesfully negotiate the amount, but late HOA dues can torpedo a short sale on your Orange County home.”

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.

Freddie Mac announced the average rate for 30-year fixed loans sank to 4.58 percent this week. According to the NAR, pending home sales decreased 30 percent from April. President Obama is expected to sign the extension to the home buyer tax credit. RealtyTrac reports that foreclosure sales took up 31% of all home sales in the US through Q110.

In The News:

Associated Press – “Mortgage rates drop to another low, 4.58 pct.” (7-1-10)

“Mortgage company Freddie Mac said Thursday the average rate for 30-year fixed loans sank to 4.58 percent this week. That’s down from the previous record of 4.69 percent set last week and the lowest since the mortgage company began keeping records in 1971. The last time they were cheaper was the 1950s, when most long-term home loans lasted just 20 or 25 years.”

NAR - “Pending Home Sales Drop as Expected” (7-1-10)

“The Pending Home Sales Index,* a forward-looking indicator, dropped 30.0 percent to 77.6 based on contracts signed in May from a reading of 110.9 in April, and is 15.9 percent below May 2009 when it was 92.3. The falloff comes on the heels of three strong monthly gains as home buyers rushed to take advantage of the tax credit.”

CNN - “Homebuyer credit extension heads to Obama” (7-1-10)

“First-time homebuyers will have until Sept. 30 to close on their purchases and land an $8,000 tax credit under a bill passed by the Senate late Wednesday. President Obama is expected to sign the bill, which was overwhelmingly approved by the House on Tuesday. The deadline had been June 30.”

Housing Wire – “Short Sale Discounts Vary Widely from State to State” (7-1-10)

“This week, RealtyTrac released a report that foreclosure sales took up 31% of all home sales in the US through Q110. According to the report, there were 88,000 pre-foreclosure sales, often short sales, in Q110, for an average discount from retail home prices of 14.7%. By comparison, REO discounts in the US averaged 34%.”

Housing Wire – “CoreLogic’s Mark Fleming: The Recovery Looks Like a ‘U’, Not a ‘W’” (7-1-10)

“Our economists have been more concerned about a U-shaped recovery, rather than a double dip. What they see as more likely is a long bottom drifting up slowly, following the same ‘U’ shape as the 2000 recession, only with a longer, more pronounced bottom.”

Housing Wire – “Fannie Updates Appraisal Policies” (7-1-10)

“Fannie will now require interior photographs of specific rooms and areas of the house in the appraisal report. The GSE provided guidance on when an appraisal is considered deficient and when a lender can make changes to the opinion of market value based on underwriter judgment, automated valuation models or other methodology. The policy changes take effect for all mortgage loan applications dated on or after Sept. 1, 2010.”

Orange County Register - “12,300 O.C. building jobs lost in year” (7-1-10)

“O.C. building trades shed 12,300 jobs in the past year, according to a recent analysis of federal employment data by the Associated General Contractors of America. In all, Orange County construction employment fell by 16% from May 2009 to May 2010.”

Realty Times – “Should You Buy A Condo?” (7-1-10)

“Maintenance. Most condominiums require very little maintenance from their tenants. Yard work and the like are done and paid for through your monthly dues. Reserve funds are saved up by the condo association for larger periodic repairs, such as roof replacement and painting. Amenities. In many condominium communities you’ll find you have access to a clubhouse, pool, exercise facilities, concierge, or even door security. These great perks cost you nothing extra and are quite the draw for many buyers.”

Looking Back:

One year ago, the NAR reported that pending home sales remained relatively flat from April to May. Mortgage application volume decreased 18.9 percent within one week. Kenneth Rosen, an economist from the University of California, predicted that as many as one in five U.S. hotel might default by the end of 2010.

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

According to the MBA, the level of commercial/multifamily mortgage debt outstanding decreased to $3.31 trillion in the first quarter. The NAR reports existing home sales decreased by 2.2 percent last month. California home sales increased 1.2 percent last month. An amendment to the Wall Street Reform Bill being debated today in Congress would eliminate the hotly contested Home Valuation Code of Conduct.

In The News:

Mortgage Bankers Association – “MBA Analysis: Commercial and Multifamily Mortgage Debt Outstanding Declined 0.9 Percent in First Quarter 2010″ (6-22-10)

“The level of commercial/multifamily mortgage debt outstanding decreased in the first quarter, to $3.31 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data. Declines were driven by drops in commercial and multifamily mortgages held in CMBS and construction loans held by banks and thrifts. The $3.31 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $31 billion or 0.9 percent from the fourth quarter of 2009. Multifamily mortgage debt outstanding rose to $852 billion, an increase of $3 billion or 0.4 percent from the fourth quarter of 2009.”

NAR - “May Shows a Continued Strong Pace for Existing-Home Sales” (6-22-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.”

California Builder – “Market Your Way Out of Tough Times” (6-22-10)

“Many businesses think ‘keeping your name in front of the public’ is a valid advertising strategy. It’s questionable at best, but it’s way too risky and low-yield in tough times. Instead, make sure your advertising is only in publications that reach your best prospects, and – this is the most important part – make a specific offer and call to action to get readers of the ad to call you.”

CAR - “May sales and price report” (6-22-10)

“Home sales increased 1.2 percent in May in California compared with the same period a year ago, while the median price of an existing home rose 23.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Sacramento Bee – “California personal income grows in quarter” (6-22-10)

“Personal income in California grew $14 billion to $1.57 trillion in the first quarter compared with the last quarter of 2009, according to statistics released Friday by the U.S. Bureau of Economic Analysis. The 0.9 percent gain matched personal income growth for the United States, but California ranked 27th among all states.”

Inman - “Social networking sites gobble more traffic” (6-22-10)

“Social networking sites and websites hosting forums grew their market share by nearly 62 percent during the year ending in May — the largest gain among any real estate-related category, according to a new quarterly report from online metrics firm Hitwise. Visits to websites in the real estate category during May were down 24.3 percent from a year ago — the 12th consecutive month of year-over-year traffic declines dating to June 2009, the report said.”

Inman - “California may restrict lender claims over refis” (6-22-10)

“SB 1178, which passed the state Senate in a 30-4 vote on June 3, would extend protection from deficiency judgments to homeowners who have refinanced, but only up to the amount of their original loan. In other words, if the original mortgage was $300,000, and the homeowner refinanced and defaulted on a $350,000 loan, they would not be liable to repay the first $300,000.”

Housing Wire – “House Members Look to Eliminate HVCC, Change Appraisal Process” (6-22-10)

“An amendment to the Wall Street Reform Bill being debated today in Congress would eliminate the hotly contested Home Valuation Code of Conduct (HVCC), which has changed much of the home appraisal process since its introduction last year. The Federal Housing Finance Agency (FHFA) implemented HVCC in May 2009 in an attempt to improve the independence of appraisers by prohibiting lenders and third parties from influencing appraisals. It also limits the interactions between the appraisers and those originating the loan.”

Housing Wire – “Fannie and Freddie Servicers Refinance 53% More Loans in Q110: FHFA” (6-22-10)

“Mortgage servicers refinanced 53% more Fannie Mae Mae and Freddie Mac loans under the Home Affordable Refinance Program (HARP) in Q110 than in the previous quarter, according to the Federal Housing Finance Agency (FHFA). Delinquencies are improving as well in the Fannie and Freddie portfolios. According to the FHFA, the amount of loans behind by 60 or more days declined for the first time in two years, dropping by more than 23,000 to roughly 1.7m in Q110.”

Housing Wire – “Real Estate Owned Inventory to Peak in Summer 2011: BarCap” (6-22-10)

“The amount of REO inventory held by lenders is expected to peak in August 2011 at 545,000 properties, according to analysts at Barclays Capital. In April, REO remained relatively flat, increasing 0.8% from March to 526,000. The influx was primarily due to an increase in REO from the government-sponsored enterprises (GSEs), according to BarCap.”

Looking Back:

One year ago, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70% of the units have been sold. The Mortgage Bankers Association lowered its forecast of mortgage originations for 2009 to $2.03 trillion. Many lawmakers and businesses were calling for an extension of the $8,000 tax credit.\

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.

According to the NAHB, both demand and production of apartments increased from Q1 2009. Freddie Mac reports rates on 30-year fixed mortgages fell to 4.72 percent this week. RealtyTrac claims U.S. foreclosure activity decreased by 3 percent in May. Household net worth rose by 2.1 percent in the first quarter.

In The News:

NAHB - “Multifamily Builders Less Pessimistic” (6-10-10)

“The multifamily market showed signs of moving back toward stability in the first quarter of 2010, according to the latest NAHB’s Multifamily Market Index (MMI).  The current production index for market-rent apartments jumped to 30.6, 14 points higher than a year earlier, while future demand expectations for Class A apartments rose to 49.6 from 34 and for Class B to 53.1 from 43.9.  For lower-rent units and for-sale condominiums, the current production indexes rose to 38.2 and 25.0, respectively, more than 10 points higher than in the first quarter of 2009.”

Freddie Mac – “Freddie Mac: Mortgage rates hit low for year” (6-10-10)

“Rates on 30-year fixed mortgages fell this week to the lowest level of the year and were barely shy of the all-time low. Mortgage finance company Freddie Mac says the average rate sank to 4.72 percent, down from 4.79 percent last week. It was just above the record of 4.71 set last December.”

Wall Street Journal – “KB Home Buys in Inland Empire” (6-10-10)

“Builder KB Home snapped up 664 partially finished lots in California’s Inland Empire, a sign that one of the nation’s biggest boom-to-bust markets is coming back to life.”

Los Angeles Times – “Foreclosure filings decline 3% in May” (6-10-10)

“Foreclosure activity in the U.S. continued to level off in May with the number of homes caught up in some stage of the process falling 3% from April, a real estate firm said. A total of 322,920 properties received some kind of foreclosure filing last month — either default notices, scheduled auctions or bank repossessions — a 3% drop from April and an increase of less than 1% from May 2009, according to RealtyTrac in Irvine.”

San Francisco Chronicle – “Americans’ wealth rises for 4th straight quarter” (6-10-10)

“The Federal Reserve reported Thursday that household net worth rose by 2.1 percent in the first three months of this year to $54.6 trillion. It marked the fourth consecutive quarter that Americans’ wealth grew.”

Housing Wire – “RealtyTrac: Most Foreclosure Properties Not Underwater” (6-10-10)

“Of all of the foreclosures in the RealtyTrac online database, less than 50% have mortgages worth less than what is owed, said Rick Sharga, senior vice president at RealtyTrac, during a session at REO Expo, which concludes in Dallas Wednesday.”

Housing Wire – “Congress to Consider FHA Reform, Mortgage Insurance Hike” (6-10-10)

“House Resolution (HR) 5072, the FHA Reform Act of 2010, was reported to the House of Representatives Tuesday and could begin facing votes as early as this week. The FHA reform bill would raise the annual mortgage insurance premium to 1.55% from 0.55%.”

Bloomberg - “Subprime Delinquencies Show Clear ‘Positive Shift,’ RBS Says” (6-10-10)

“The proportion of U.S. homeowners turning delinquent on mortgages backing the securities that roiled the global financial system has tumbled in the past three months, even after accounting for a typical seasonal improvement, according to RBS Securities Inc. Of borrowers with subprime loans in 2007-issued bonds who had never missed payments, an average of 2.6 percent fell behind each month, a drop from 3.7 percent in February, representing a 15 percent decline after seasonal adjustments, according to RBS analysts.”

Bloomberg - “Banks Face Short-Sale Fraud as Home ‘Flopping’ Rises” (6-10-10)

“Sergio Natera and Anna McElaney are scheduled to be sentenced in Hartford’s federal court in August after pleading guilty to fraud. Their crime involved persuading lenders to approve the sale of homes for less than the balance owed –known as a short sale — without disclosing that there were better offers. They then flipped the houses for a profit. The Federal Bureau of Investigation, the California Department of Real Estate and mortgage finance company Freddie Mac have warned that such schemes may be spreading after a plunge in values left homeowners owing more than their properties are worth. The scams threaten to deepen losses for lenders that are increasingly agreeing to short sales as an alternative to more costly foreclosures.”

Looking Back:

One year ago, 2,771 new homes and condominiums were sold within one month in the subdivisions tracked by Costa Mesa-based HWMI. The MBA reported that mortgage application volume decreased by 7.2 percent in one week. Steven Kandarian said commercial mortgage defaults will rise in 2011 to 2012.

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

The chief economist of the NAR predicts the housing recession will bottom this summer. Doug Duncan, the chief economist for Fannie Mae, believes housing demand will not balance with new household formation and housing starts until 2013. According to Fitch Ratings, subprime RMBS delinquencies fell to 44.8% in May. Terradatum Inc reports home and condominium sales increased by 50 percent from last year.

In The News:

Orange County Register – “Zillow: No housing bottom yet” (6-6-10)

“‘The housing recession is not over. Housing prices will continue to fall,’  Zillow Chief Economist Stan Humphries said at the National Association of Real Estate Editors conference in Austin, Texas. By Humphries’ estimate, home prices won’t bottom out until this summer. But don’t expect a quick rebound in home prices once that bottom is reached, he added.”

Orange County Register – “Mid-county homebuying tumbles 12%” (6-6-10)

“DataQuick identified 756 homes selling in Orange County’s north-inland ZIP codes in this most recent period, +13% from a year ago. Median selling price? $457,500 in these 23 ZIPs. This most recent median price change was +8.2% vs. a year ago. Mid-county ZIPs — median selling price $349,500 – had 805 sales, -12% from a year ago. In these 24 ZIPs, the freshets median price change was +11.8% vs. a year ago.”

Orange County Register – “43% of Talega home deals are distressed” (6-5-10)

“The newest ‘market time’ of San Clemente’s Talega community – Thomas’ math that tracks theoretical time it would take to sell all listed homes at the pace of new escrows opened — is 2.41 months. That is -13.2% (or roughly 11 days) in a year. Over two years, it’s -50% or 73 days.”

Inman - “A real estate recovery in 2013″ (6-7-10)

“housing demand may not see a normal balance with new household formation and housing starts until 2013, said Doug Duncan, chief economist for secondary mortgage giant Fannie Mae.”

Housing Wire – “Distressed Commercial Properties to Rise Fastest in US and Ireland, Finds RICS” (6-7-10)

“However, its Q110 Global Distressed Property Monitor finds that the pace is likely to pick up in 70% of surveyed countries, with the US and Ireland leading the way. The monitor asked 466 surveyor offices worldwide about trends in property investments. A distressed property is defined as that which is under a foreclosure order, or advertised for sale. The survey clarifies that such properties are usually sold for under-market value.”

Housing Wire – “Subprime Delinquencies Drop Again as CDS Prices Return to 2008 Levels” (6-7-10)

“Subprime RMBS delinquencies fell to 44.8% in May, from 45.2% in April. The rate is still up from 28.3% the same time last year. Fitch found in a separate survey that prices of US subprime credit default swaps (CDs) grew 7.6% from last month and are now at levels last seen in December 2008.”

Bloomberg - “Tech Lifts S.F. Prices as Ocean View Gets 26 Bids” (6-7-10)

“Sales of houses and condominiums in San Francisco jumped 50 percent in the first quarter from a year earlier and the median price rose 5.4 percent to $685,000, according to a multiple listings analysis by Terradatum Inc. House values will gain 7 percent this year, the biggest annual increase since a 9 percent advance in 2005, Rosen Consulting Group forecast last month.”

Orange County Register – “Local builders enjoying a revival” (6-7-10)

“Buyers signed contracts to purchase 523 new homes in Orange County during this year’s winter quarter. That’s the highest number of sales contracts for any quarter since the spring of 2008. Sales contracts saw the highest quarterly percentage gain in records dating back to 2007. New home contracts declined on a year-over-year basis in 10 of the past 13 quarters. They only increases were: Spring 2007, up 5.7 percent; fall 2009, up 6.2 percent; winter 2010, up 56.1 percent.”

Realty Times – “Real Estate Outlook: Positive Trends” (6-7-10)

“Last week’s pending home sales report from the National Association of Realtors illustrates the trend: Pending contracts jumped for the third straight month — up by six percent in April — and now stand 22 percent higher than the year before. Every region but one — the South — racked up sizable gains in transactions heading for settlement. Contracts in the Northeast were up by nearly 30 percent for the month. In the West, they rose nearly eight percent, and in the Midwest the gain was about four percent.”

Looking Back:

One year ago, Freddie Mac predicted sales of new and existing homes might increase to an annual pace of 5.1 million. The number of Orange County property owners who disputed their taxes increased 23% from 2008 to 2009.

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