Today’s News Synopsis:
The number of foreclosures completed was at 40,000 last month, showing signs of decrease but still remaining above where they were at before the recession. Both Fitch and Moody’s are warning investors about the decrease in bond credit quality. Homeownership is expected continue decreasing all the way into 2030.
In The News:
Bloomberg - “Slipping Standards in Commercial-Mortgage Debt Raise Fitch Alarm” (6-9-15)
“Fitch Ratings is joining Moody’s Investors Service in warning that the credit quality of bonds backed by real estate debt is slipping at the same time that underwriters show reluctance to strengthen safeguards against losses.”
DS News - “Completed Foreclosures Decline But Remain At Double Pre-Recession Levels” (6-9-15)
“While completed foreclosures on residential homes totaled 40,000 for April and have been steadily falling monthly for the last four years, they are still nearly double their pre-recession average per month, according to CoreLogic’s April 2015 National Foreclosure Report released Tuesday.”
Housing Wire- “Freddie Mac names Becketti new chief economist” (6-9-15)
“Freddie Mac today announced that Sean Becketti, an executive with broad experience in the private sector, government and academia, is joining the company as vice president and chief economist.”
Mortgage Professional America - “America’s most overvalued markets” (6-9-15)
“Sunny states make up the majority of the country’s most overvalued markets, with two major markets in Texas considered the country’s most overpriced, despite impressive job growth.”
Housing Wire - “Dodd-Frank continues to smother mortgage lending” (6-9-15)
“Ninety percent of the typical bank’s mortgage loans made last year were “qualified mortgages,” according to the American Bankers Association’s 22nd annual Real Estate Lending Survey. The survey results, released today, revealed that nearly 80% of respondents expect the Consumer Financial Protection Bureau’s mortgage lending rules will continue to cause a reduction in credit availability with 19% characterizing the impact as severe.”
DS News - “Study Estimates Homeownership Rate Will Continue Decline Into 2030″ (6-9-15)
“New renters will outpace new homeowners in the next decade and a half and the homeownership rate will decline even though there will be more homeowners than renters, thus creating intense competition for rental housing, according to a study released by the Urban Institute (UI) this week.”
Bloomberg - “Carlyle Weighs U.S. Real Estate Expansion, Rubenstein Says” (6-9-15)
“Carlyle Group LP, the world’s second-biggest manager of alternatives to stocks and bonds, may add a real estate offering targeting about 10 percent returns, co-founder David Rubenstein said.”
Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.
Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.
The recent consumer survey by the Federal Reserve Bank of New York showed consumers in every region accept the South expected home prices to increase. Outstanding mortgage debt for commercial and multifamily properties increased by $11.1 billion in the first quarter, a 0.4% increased from the fourth quarter. The latest survey by Fannie Mae showed consumers were more concerned about the economy and their income, which could affect home sales.
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