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California Real Estate Headline Roundup

Posts Tagged ‘Credit Suisse’

The Norris Group Real Estate News Roundup 12/14/11

Wednesday, December 14th, 2011

Today’s News Synopsis:

In a big news story, mortgage applications are up 4.1% according to the most recent MBA Weekly Survey.  Home sales in Southern California increased last month from October and from the same time a year ago according to Housing Wire.  In other news, mortgage fraud is the highest in California despite mortgage activity being down in the third quarter.

In The News:

Mortgage Bankers Association - “Refinance Applications Increase as Rates Drop to 2011 Lows in Latest MBA Weekly Survey” (12-14-11)

“Mortgage applications increased 4.1 percent from one week earlier, driven by a surge in refinance applications, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 9, 2011.”

Housing Wire - “California ranks No. 1 for mortgage fraud” (12-14-11)

“Mortgage fraud activity slowed overall in the third quarter, but California ranks first in home loan fraud, with the state seeing as much as $204.2 million in losses on deceptive mortgage activity.”

Los Angeles Times - “New signs of trouble for Goldman Sachs” (12-14-11)

“Goldman Sachs, the once-mighty king of Wall Street, appears to be losing employees, market share and the confidence of investors.  One of the most outspoken Wall Street analysts. Richard Bove, announced this week that he is cutting his outlook for Goldman’s fourth-quarter earnings by 66%, estimating that the bank will earn 79 cents a share.”

San Francisco Chronicle - “U.S. Stock-Index Futures Rise; S&P 500 May Snap Two-Day Decline” (12-14-11)

“U.S. stock-index futures rose, indicating the Standard & Poor’s 500 Index will snap a two-day decline, amid mounting optimism that the world’s largest economy will remain insulated from the euro-area debt crisis.”

Housing Wire - “Foreign homebuyers clicking on depressed US housing markets” (12-14-11)

“Foreigners looking to purchase homes in the U.S. are increasing their online search activity for bargains, as sliding home prices continue to attract investors from around the globe — especially Canada.”

Hard Money Loan Closed

Rancho Cucamonga, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $190,000 on a 3 bedroom, 2 bathroom home appraised for $315,000.

In The News:

Bloomberg - “Morgan Stanley Real-Estate Fund Said Likely to Win New Deadline” (12-14-11)

“Morgan Stanley’s (MS) $4.7 billion real-estate fund, known as MSREF VII, will probably win approval to extend the deadline for finding new investments into 2013, aperson familiar with the discussions said.”

Housing Wire - “SoCal home sales rise on declining prices” (12-14-11)

“The number of homes sold in Southern California rose modestly last month from both October and a year earlier as investors and first-time buyers targeted homes priced below $400,000.”

Bloomberg - “San Francisco Bay Area Home Prices Fall as Distressed-Property Sales Gain” (12-14-11)

“San Francisco Bay Area home pricesfell 4.3 percent last month from a year earlier as distressed properties made up a greater share of sales, DataQuick said.”

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris will be speaking at the Real Estate Rewind at IRCA Los Angeles on January 3, 2012.

The Norris Group will be at the Real Estate Investor Rewind at CVREIA on January 10, 2011.

Looking Back:

Robo-signing took an effect on foreclosures in the Western states, which decreased almost 40%.  Oustanding debt on commercial/mulitfamily mortgages decreased 1.3% in the third quarter of 2010.  In the first half of 2010, suspicious activity reports for mortgage fraud increased 7% from one earlier.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 11/19/10

Monday, November 22nd, 2010

Resources:
Delinquencies and Loans in Foreclosure Decrease
Southland Home Sales Fall, Prices Flat
CoreLogic: Mortgage fraud up 20% from 2009
Freddie Mac survey shows mortgage rates at highest level since August
Freddie Mac survey shows mortgage rates at highest level since August
Home Buying Gets Tougher as Lenders Restrict FHA Loans
FHA Reserves Fall to Lowest on Record as Agency Boosts Capital
MERS to testify it forecloses only by mortgage servicer request
http://banking.senate.gov/public/index.cfm?FuseAction=Hearings.LiveStream&Hearing_id=df8cb685-c1bf-4eea-941d-cf9d5173873a
Problems in Mortgage Servicing From Modification to Foreclosure
MERS CEO Defends Technology to Senate Committee
The Consequences of Mortgage Irregularities for Financial Stability… in Plain English
CAI Survey: Associations Hit Hard by Housing, Economic Slump
FTC Issues Final Rule to Protect Struggling Homeowners from Mortgage Relief Scams
Fiserv expects another big drop in home prices next year
S&P predicts more home price declines through 2011

Today’s News Synopsis:

October home sales fell 9.8%, according to RE/MAX. The Federal Trade Commission released a new rule banning companies from accepting fees on mortgage mods before a homeowner’s loan servicer deems the services rendered acceptable. The Federal Housing Finance Administration announced that loan limits on jumbo conforming loans will stay the same for the first nine months of 2011. The Treasury reports borrowers aided by HAMP increased to nearly 520,000 last month.

In The News:

Inman - “Median housing value fell 5.8% in 2009″ (11-19-10)

“Median housing value fell 5.8 percent in 2009, to $185,200 from $196,700 in 2008, the U.S. Census Bureau reported, according to data obtained from the American Community Survey (ACS).”

Housing Wire – “Fed chairman disappointed in slow economic recovery” (11-19-10)

“Disappointingly slow. That’s Federal Reserve Chairman Ben Bernanke’s latest assessment of the economic recovery in the U.S. But, he does believe the central bank’s policy changes are helping.”

Housing Wire – “Tightening mortgage tax code limits housing recovery: John Burns” (11-19-10)

“John Burns Real Estate Consulting said in a report Friday that government intervention is hurting the housing market, and the firm is growing more concerned that lawmakers will reduce the cap on mortgage interest rates that qualify for tax deductions ‘significantly.’”

Housing Wire – “Credit Suisse lists mortgage servicers with highest Ginnie Mae delinquencies” (11-19-10)

“Ally Financial’s (GJM: 22.39 +0.40%) GMAC Mortgage holds the highest serious delinquency rate of Ginnie Mae-backed mortgages for any servicer, according to a report from investment bank Credit Suisse.”

Housing Wire – “New FTC rule aimed at mortgage-relief scams” (11-19-10)

“The Federal Trade Commission unveiled a new rule that bans companies from accepting fees for mortgage modifications before a homeowner’s bank or loan servicer deems the services rendered acceptable.”

Housing Wire – “Failed HAMP mod short sales increase through September” (11-19-10)

“Top mortgage servicers have completed 91,827 short sales or deeds-in-lieu of foreclosure on canceled trial or declined modifications through the Home Affordable Modification Program as of September, up 27% from the previous month, according to data from the Treasury Department.”

Bloomberg - “U.S. Homeowners Drop Out of Foreclosure Program Amid Record Defaults” (11-19-10)

“Borrowers aided by the Home Affordable Modification Program grew to nearly 520,000 in October, up 23,750 from a month earlier, the Treasury said in its monthly report. The increase was less than five percent. A total of 36,300 borrowers have dropped out of the plan for failing to make their payments, an increase of 24 percent from a month earlier.”

Housing Wire – “RE/MAX: October home sales slide as seasonal slowdown hits market” (11-19-10)

“October home sales slid 9.8% from September and 30.2% compared to the year-ago period as seasonal slowdowns and the expired homebuyer’s tax credit took their toll, according to the RE/MAX National Housing Report released Friday.”

Housing Wire – “Jumbo loan limits remain the same in 2011″ (11-19-10)

“The loan limits on jumbo conforming loans will remain unchanged for the first nine months of 2011 the Federal Housing Finance Administration said Friday. The agency recently enacted a congressional continuing resolution to maintain the limits.”

Housing Wire - “Failed HAMP mod short sales increase through September” (11-19-10)

“Top mortgage servicers have completed 91,827 short sales or deeds-in-lieu of foreclosure on canceled trial or declined modifications through the Home Affordable Modification Program as of September, up 27% from the previous month, according to data from the Treasury Department.”

Looking Back:

One year ago, an amendment was passed allowing federal regulators to dismantle financial firms considered to be “too big to fail”.  According to PMI Group, new home sales had decreased by 3.6 percent. The NAHB estimated that families earning the national median income could afford 70.1 percent of the new and existing homes sold in Q3 of 2009. First American CoreLogic reported that home prices declined by 9.8 percent in September from the previous year.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 11/1/10

Monday, November 1st, 2010

Today’s News Synopsis:

Credit Suisse estimates Fannie Mae and Freddie Mac will have cumulative losses of $321 billion. Private mortgage servicers modified 119,585 loans in September, over 4 times as many modifications performed through HAMP. Statistics from the Federal Reserve show home equity accounted for 16.2% of net worth in the 2nd quarter.

In The News:

RecordNet.com - “Economic forecast heads south” (10-31-10)

“He previously forecast California’s unemployment rate would drop to 11 percent in 2011 and to less than 10 percent the year after. The October report now has state jobless rates remaining above 10 percent well into 2013. San Joaquin County will remain in the doldrums a while longer, with annual jobless rates hovering above 17 percent for the next two years before easing to 16.4 percent in 2013, according to the Pacific forecast.”

Market Watch – “White-collar recession, blue-collar depression” (10-30-10)

“the disparity between white-collar and blue-collar unemployment is stunning: 4.5% among college graduates versus 10.8% for those with a high-school diploma, and 14.3% for those without one.”

Daily Finance – “The Foreclosure Mess: It’s Even Worse in ‘Nonjudicial’ States” (10-30-10)

“In 23 states, before a lender can foreclose on a homeowner for defaulting on a mortgage, it must take the homeowner to court. As we’ve seen, even with judicial review that process has still been shot through with problems. But for a troubled homeowner in California, Texas and 25 other ‘nonjudicial’ states, the robo-signing scandal and foreclosure mess are even more dangerous because the lender doesn’t have to go to court to foreclose. Fraudulent paperwork can be used with impunity unless the homeowner is in bankruptcy, which is a judicial process, or unless the homeowner is represented in the foreclosure by an attorney who knows what to look for.”

Housing Wire – “SEC reminds banks to disclose impacts of mortgage repurchases, foreclosure reviews” (11-1-10)

“Major banks are struggling to get an accurate estimate on how much agency and private-label mortgage-backed securities losses they will be responsible for repaying to the purchasers of those securities, such as Fannie Mae and Freddie Mac.”

Housing Wire – “Credit Suisse projects $321 billion more losses for Fannie, Freddie” (11-1-10)

“Credit Suisse analysts estimate $321 billion in cumulative losses at Fannie Mae and Freddie Mac, based on a further 10% decline in home prices over the next year. Under that scenario, prices would flatten over in following year and experience a 3% annual appreciation going forward.”

Housing Wire – “TransUnion: delinquent mortgage roll rates highest in month after recession” (11-1-10)

“The number of delinquent mortgages that moved to a more serious status peaked the month after the recession officially ended, according to a study by TransUnion. The credit information company said the level of consumers who rolled their delinquency status to 60 days from 30 and to 90 days from 60 reached its highest point in July 2009. Nearly a quarter of those who were 30-days late on their mortgage payments in June 2009 became 60 days past due in July 2009, according to TransUnion”

Housing Wire – “Private mortgage modifications outnumber HAMP 4 to 1 in September” (11-1-10)

“Mortgage servicers modified 119,585 loans through private programs in September, more than four times the 27,840 done through the Treasury’s Home Affordable Modification Program, according to the Hope Now alliance.”

Housing Wire – “Monday Morning Cup of Coffee” (11-1-10)

“Fannie Mae directed servicers to work closely with Housing Finance Agencies across the country now that the HFAs received a total $7.6 billion in Hardest Hit Funds from the Treasury Department. The money will be used to provide temporary relief to unemployed mortgage borrowers through the HHF Unemployment Programs and delinquent borrowers through the HHF Reinstatement Programs.”

Bloomberg - “Housing Matters Little to U.S. Consumers’ Wealth: Chart of the Day” (11-1-10)

“home equity accounted for 16.2 percent of net worth at the end of the second quarter, the Fed’s data showed.”

Bloomberg - “JPMorgan Trims Biggest Mortgage Putback Estimate to $90 Billion” (11-1-10)

“JPMorgan Chase & Co. analysts lowered their estimate for the cost to sellers of repurchasing soured U.S. mortgages to as much as $90 billion from a range that went as high as $120 billion.”

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

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The Norris Group Real Estate News Roundup 10/8/10

Friday, October 8th, 2010

Today’s News Synopsis:

ZipRealty reports 24.2% of homes in the nation’s 26 major markets experienced experienced a price cut in September. Bank of America is postponing foreclosure sales in all 50 states. Wells Fargo has decided to continue with its foreclosures, unlike BofA, JPMorgan and Ally Financial. Credit Suisse predicts record low interest rates will boost demand for mortgage-backed securities.

In The News:

Inman - “Home-sale discounts jump 24%” (10-8-10)

“The number of homes that experienced price cuts jumped 24.2 percent in September compared to the same month last year, according to a monthly review of multiple listing service listings in 26 major markets conducted by national online brokerage ZipRealty.”

Yahoo - “How Your FICO Score is Calculated” (10-8-10)

“Payment history – How you pay your bills makes up 35% of your FICO score. It goes without saying that paying your bills on time will have a positive impact on your credit score, while paying your bills late or not at all will have a dramatically negative impact. Even paying one bill late will cause your FICO score to take a hit, so make sure you’re paying your bills on time. If you’ve made mistakes in the past and haven’t always paid your bills on time, don’t fret. If you change your ways and pay on time, your FICO score will eventually reflect that. Late payments have less of an impact on your credit score once time has passed.”

Los Angeles Times – “Bank of America widens foreclosure freeze to all 50 states” (10-8-10)

“Bank of America is halting foreclosure sales in all 50 states as the nation’s largest bank said Friday it was widening its investigation into how it handled home repossessions.”

Housing Wire – “California AG files suit in audit loan modification scam” (10-8-10)

“California Attorney General Jerry Brown has filed a $60 million lawsuit against a pair of Sacramento companies that he says used questionable computer-generated ‘forensic loan audits’ to defraud homeowners seeking to modify their mortgages.”

Housing Wire – “US lost 95,000 nonfarm payroll jobs in September” (10-8-10)

“The Labor Department’s Bureau of Labor Statistics reported federal employment cut another 159,000 jobs last month, including 77,000 temporary Census workers and 76,000 local government positons. The private sector added 64,000 jobs in September, according to the Labor Department. Economists polled by MarketWatch were forecasting about 85,000 new private-sector jobs were created last month.”

Housing Wire – “Financial radio talk-show host charged with real estate fraud” (10-8-10)

“Barbra Alexander, a local California radio show host, was charged along with two business executives for misappropriating investor funds to finance her radio talk-show, ‘MoneyDots,’ and for personal use. Alexander allegedly used her status as a radio show host on ‘MoneyDots,’ a talk-show for entrepreneurs, to lure investors into giving funds for short-term loans secured by real estate. The money went to APS Funding, a lending firm of which Alexander is also president.”

Housing Wire – “Credit Suisse analysts see record-low mortgage rates boosting MBS demand” (10-8-10)

“The record low interest rates should boost demand for mortgage-backed securities, as originators sell newly locked-in loans, according to Credit Suisse analysts.”

Housing Wire – “Wells Fargo will not join BofA in foreclosure suspension” (10-8-10)

“Wells Fargo (WFC: 25.95 -0.19%) will not suspend foreclosures and stands by the accuracy of its affidavits, Jason Menke, a spokesman for the San Francisco-based bank, told HousingWire.”

Looking Back:

One year ago, a government report showed that the Federal Reserve and the U.S. Treasury spent $1.2 trillion dollars on the U.S. mortgage market in fiscal 2009. The Department of Labor announced that the weekly unemployment claims had decreased by 33,000.  Statistics from Freddie Mac showed that mortgage rates for 30-year fixed U.S. home loans fell to 4.87 percent from 4.94 percent in the previous week. Trulia reported that U.S. home sellers had reduced their price by a total of $28.4 billion.

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

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The Norris Group Real Estate News Roundup 9/21/10

Tuesday, September 21st, 2010

Today’s News Synopsis:

Loan originations increased 25% from 2008, according to the Federal Financial Institutions Examination Council. The Commerce Department reports new home and apartment construction rose 10.5% last month to a seasonally adjusted annual rate of 598,000. Zillow claims interest rates fell again to 4.25%.

In The News:

San Francisco Chronicle - “More mortgage loans – first time since ’05 peak” (9-21-10)

“U.S. mortgage lending rose for the first time in four years in 2009 as a decline in borrowing rates spurred refinancings, according to regulatory data. The number of loans originated climbed 25 percent to 8.95 million from 2008, according to a report released Monday in Washington by the Federal Financial Institutions Examination Council. Refinancings rose 66 percent to 5.76 million, while loans to purchase homes dropped 11 percent to 2.78 million. Home-improvement and multifamily-dwelling loans also fell.”

Los Angeles Times – “Home construction jumps 10.5% in August” (9-21-10)

“Construction of new homes and apartments rose 10.5% in August from July to a seasonally adjusted annual rate of 598,000, the Commerce Department said Tuesday. That’s the highest level since April.”

Housing Wire – “Flattened Ginnie roll rates in 2Q could mean slower prepays: Credit Suisse” (9-21-10)

“The amount of Ginnie Mae-held loans rolling from 60 days to 90 days delinquent slowed in the second quarter, after spiking last year. According to research from Credit Suisse, this could signal slower involuntary prepayments going forward. The Ginnie Mae share of agency fixed-rate issuance dropped to 33% in August, from 36% in July. Its total 30-year gross and net issuances in August were $28.8 billion and $22.7 billion respectively, both down from $31.4 billion and $15.2 billion in July.”

Housing Wire – “CRE investment gearing up, but analysts don’t expect comeback until 2012″ (9-21-10)

“Trouble in the commercial real estate sector is not likely to be resolved until the economy picks up and job creation boosts demand for office, retail, hotel and other commercial properties, according to a Standard & Poor’s commentary released Monday. Even though the market research firm sees a trough in some CRE subsections, overall improvement isn’t expected until at least 2012.”

Housing Wire – “Zillow: 30-year, fixed rates reach another low at 4.25%” (9-21-10)

“Interest rates continue to set all-time lows, as Zillow reported its Mortgage Marketplace showed the average rate for a 30-year, fixed mortgage is currently 4.25%. The real estate information firm said the rate if down seven basis points from 4.32% the week earlier and at the lowest level since the report launched in April 2008.”

Housing Wire – “Home sales level off in August after recent plunge: RE/MAX” (9-20-10)

“August home sales dropped 0.5% after plummeting in July, according to real estate franchise RE/MAX. Home sales are still down 17.9% from August of last year. While some real estate agents reported increased showings, few have translated into closed transactions after the expiration of the homebuyer tax credit at the end of April.”

Bloomberg - “Fed Under Pressure Amid Confusion Over New Easing” (9-21-10)

“Federal Reserve officials are under pressure to avoid creating confusion among investors about any new effort to spur the U.S. recovery. The Federal Open Market Committee, which meets today, triggered a stock selloff with its last statement on Aug. 10 as investors took it as a signal the economy will falter. The Standard & Poor’s 500 Index tumbled 7.1 percent during the two weeks following the statement after reaching a three-month high on Aug. 9. The MSCI World Index fell 7.3 percent.”

Orange County Register – “CA. mortgage defaults climb 4th month in row” (9-21-10)

“Notices of default filings in California, the first step in the foreclosure process, climbed for the 4th month in a row in August, up by 16.6% from July and 16% from August, 2009, ForeclosureRadar reports. Homes in the state that went back to lenders were up 20% over July and 0.8% from August last year. Foreclosure sale cancellations were down 11%. The inventory of bank-owned homes went up 3.63% from last month and 8.28% year over year.”

Orange County Register – “Fed keeping cheap money policy” (9-21-10)

“the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls. Housing starts are at a depressed level. Bank lending has continued to contract, but at a reduced rate in recent months.”

Inman - “Survey: Home-price outlooks sour in Q3″ (9-21-10)

“Ninety percent of real estate agents and brokers expect home prices to either fall or stay the same over the next six months, according to a survey by online real estate marketing site HomeGain. HomeGain conducted the survey from Sept. 7-14, with participation from more than 1,100 real estate agents and brokers and 2,600 homeowners nationwide.”

Looking Back:

One year ago, the federal government claimed it had plans to “tinker” with mortgage interest reporting. First American estimated that California had approximately $30 billion dollars worth of bad home loans. A review of over 24 million credit files showed that people with good credit scores were more likely to ‘strategically default’. Lennar Corp. forecasted a profitable year, despite a bad 3rd quarter.

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

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The Norris Group Real Estate News Roundup 7/13/10

Tuesday, July 13th, 2010

Today’s News Synopsis:

MDA DataQuick reports 23,871 homes were sold in Southern California last month. Statistics from CoreLogic show that prices in May grew 0.9% from the month before. According to Foreclosure Radar, lenders canceled nearly 22,000 California foreclosure sales in June. A comparative analysis from Credit Suisse shows that the cost of owning a home is cheaper than renting in multiple areas.

In The News:

DQNews - “Southland home sales edge up, prices level off” (7-13-10)

“A total of 23,871 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 7.2 percent from 22,270 in May, and up 2.6 percent from 23,262 for June 2009, according to MDA DataQuick of San Diego.”

Housing Wire – “Home Prices Increase for the Fourth Straight Month: CoreLogic” (7-13-10)

“Home prices on the CoreLogic home price index (HPI) have increased every month since the 0.3% yearly increase in February. The May increases come after a 2.6% yearly gain in April. Prices in May grew 0.9% from the month before, a smaller increase from the 1.3% gain from March to April. According to CoreLogic, sales in the bottom-tier of the market, those homes priced at 75% below the median, are driving the recent increases in overall prices.”

Sacramento Bee – “California tax assessments of homes to go down” (7-13-10)

“Sacramento County’s tax roll dropped nearly 2.2 percent to $128.8 billion. Yolo County’s is down about 1.9 percent. And El Dorado County and Placer County both saw the value of their taxable property drop more than 6 percent. The falling values represent good news for many homeowners, who will see lower property tax bills this October.”

Housing Wire – “HAFA Ushers Record Number of Foreclosure Sale Cancellations in California” (7-13-10)

“Lenders canceled nearly 22,000 California foreclosure sales in June, driven mostly by JPMorgan Chase (JPM: 40.48 +3.29%). It’s a 27% increase from May, a 153% growth from a year ago, and an all-time high, according to ForeclosureRadar, which tracks foreclosures in the state.”

Housing Wire – “Cost Spread Between Owning a Home and Renting is Narrowing: Credit Suisse” (7-13-10)

“With mortgage rates at record lows and housing markets stuffed to the gills with cheap distressed properties that’s led to declining home prices, the cost to own a home is sometimes cheaper than renting an apartment in many markets, according to analysts at Credit Suisse. While a segment of the renting population continues to rent, many are looking to dip their toes in the homeownership waters. Credit Suisse said the percentage of median household income needed to pay the mortgage on a median priced home is at a 30-year low, as seen in the below chart.”

Housing Wire – “Seriously Delinquent Prime RMBS Rise for 37th Straight Month: Fitch Ratings” (7-13-10)

“The 60-plus-day delinquency rate for US prime residential mortgage-backed securities (RMBS) rose in the 37th consecutive month in June, according to Fitch Ratings. The credit-rating agency noted the ‘seriously’ delinquent rate — of 60 days or more — within prime jumbo RMBS rose to 10.4% in June, up from 10.3% in May and 6.4% at the same time last year.”

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

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The Norris Group Real Estate News Roundup 6/25/10

Friday, June 25th, 2010

Sources:

http://www.realtor.org/press_room/news_releases/2010/06/may_strong_pace

http://www.nahb.org/news_details.aspx?newsID=10966

http://www.car.org/newsstand/newsreleases/maysalesprice/

http://lansner.ocregister.com/2010/06/23/calif-s-first-time-buyer-tax-credit-almost-gone/69971/

http://www.ftb.ca.gov/aboutFTB/press/2010/Release_29.shtml

http://www.bloomberg.com/news/2010-06-23/bank-of-america-hires-2-000-staff-to-handling-troubled-real-estate-loans.html?source=patrick.net

http://oversight.house.gov/images/stories/Hearings/Committee_on_Oversight/2010/062410_HAMP_II/TESTIMONY-Desoer.pdf

http://gov.ca.gov/index.php?/print-version/press-release/15395/

http://www.calhfa.ca.gov/about/publications/press-releases/2010/pr2010-05.pdf

http://gov.ca.gov/index.php?/print-version/press-release/15395/

http://www.calhfa.ca.gov/about/publications/press-releases/2010/pr2010-05.pdf

http://www.keepyourhomecalifornia.com/

http://www.dsnews.com/articles/audit-shows-prison-inmates-received-9m-in-homebuyer-tax-credits-2010-06-24

http://online.wsj.com/article/SB10001424052748703615104575328020013164184.html?mod=djemalertNEWS

Today’s News Synopsis:

The Commerce Department reports the economy increased by 2.7 percent in the first quarter. Fannie Mae is implementing new rules requiring servicers to verify income, liabilities, and monthly expenses for all borrowers prior to granting a permanent standard Fannie Mae mortgage modification. Also, Fannie Mae will hold strategic defaulters accountable for all associated costs of getting the house back on the market. California unemployment was 12.4 percent in May.

In The News:

Los Angeles Times – “House, Senate lawmakers reach a deal on financial reform” (6-25-10)

“Ending more than two weeks of often-contentious negotiations, House and Senate lawmakers reached agreement early Friday on the most far-reaching rewrite of financial rules since the Great Depression. The final details, including creation of an agency to protect consumers in the financial marketplace and new regulations to reduce risk-taking by large banks and limit their trading of complex derivatives, were hashed out in a marathon 20-hour session that began Thursday morning.”

San Francisco Chronicle – “Economy faces tough road ahead with slower growth” (6-25-10)

“The Commerce Department said Friday that the economy grew at an annual rate of 2.7 percent in the first quarter, offering its third and final estimate for the period. It was slower than initially thought because consumers spent less and imports rose faster that previously calculated.”

Housing Wire – “Unemployed Homeowner Provision Survives Reform Bill Compromise” (6-25-10)

“The provision provides $1bn to unemployed homeowners and is patterned after a program introduced by Fattah when he was a Pennsylvania state legislator. Pennsylvania’s Homeowner’s Emergency Mortgage Assistance Program (HEMAP) has provided $236m to tens of thousands of unemployed workers to stave off the foreclosure, according to Fattah’s office. Fattah had originally sought $3bn for the federal reform bill provision.”

Housing Wire – “Fannie Mae Mortgage Modifications Now Require Proof of Financial Hardship” (6-25-10)

“After announcing this week that it intends to crack down on strategic defaulters, Fannie Mae (FNM: 0.3886 +2.26%) issued a servicing guide (download here) Friday implementing another new policy — requiring servicers to verify income, liabilities, and monthly expenses for all borrowers prior to granting a permanent standard Fannie Mae mortgage modification.”

Housing Wire – “Most Borrowers Would Benefit from Mortgage Refinance, But Can’t Qualify: Credit Suisse” (6-25-10)

“But even so, according to fixed income researchers at Credit Suisse (CS: 38.90 +1.33%), the majority of borrowers remain unable to take advantage of the exceptionally low rates that would reduce monthly payments. They find that only 38% of borrowers that could benefit from a refinance can actually do so due to a variety of barriers.”

Housing Wire – “KB Home Posts Q210 Loss, But Sees Deliveries Up” (6-25-10)

“KB Home (KBH: 11.195 -8.39%) reported a net loss of $30.7m, or $0.40 per share, for its fiscal year Q210 ending May 31, narrowed losses for the Los Angeles-based builder, which said it saw home deliveries increase for the first time in more than three years. The Q210 loss is 61% less than its Q110 loss of $78.4m, or $1.03 per share. At the end of its 2009 fiscal year, KB Home posted a $100m quarterly profit, the result of a nearly $192m tax return made possible by a temporary change to tax law.”

Bloomberg - “States of Crisis for 46 Governments Facing Greek-Style Deficits” (6-25-10)

“Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end. Unemployment was 12.4 percent in May, 2.7 percentage points higher than the national rate. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. California, tied with Illinois for the lowest credit rating of any state, is diverting a rising portion of tax revenue to service debt, Bloomberg Markets magazine reports in its August issue.”

Housing Wire – “Fannie Mae to Charge Strategic Defaulters, for Everything” (6-25-10)

“Fannie Mae (FNM: 0.3871 +1.87%) is sifting through borrower data to determine who is strategically defaulting and who is not after announcing more efforts this week to crack down on those who walk away from their homes. And if the GSE determines someone strategically defaulted, then they say they will hold the borrower accountable for all associated costs of getting the house back on the market, in areas that lawfully allow deficiency judgments.”

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 12/16/09

Wednesday, December 16th, 2009

Today’s News Synopsis:

The Wall Street Journal reports that people are increasingly willing to abandon mortgage payments for becoming renters, housing starts climb almost 9%, the FDIC offers some reprieve from securities accounting rules for the next year, and the Bureau of statistics released their real earnings report stating that average hourly earnings fell by .5%.

In The News:

DSNews - “Trulia and RealtyTrac Release Survey Results of Homebuyers’ Attitudes Toward Foreclosures” (12-15-09)

“n Tuesday, Irvine, California- based RealtyTrac and Trulia Inc., headquartered in San Francisco released the results of a new survey revealing insights to how consumers feel about purchasing a foreclosed property, conducted on their behalf by Harris Interactive, a market research firm based in New York City. Beginning in May 2008, the survey has been conducted every six months, making this the fourth survey of its type.”

Wall Street Jounral – “American Dream 2: Default, Then Rent” (12-16-09)

“People’s increasing willingness to abandon their own piece of America illustrates a paradoxical change wrought by the housing bust: Even as it tarnishes the near-sacred image of home ownership, it might be clearing the way for an economic recovery.”

Mortgage Brokers Association – “Mortgage Applications Increase Slightly in Latest MBA Weekly Survey” (12-16-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending December 11, 2009. The Market Composite Index, a measure of mortgage loan application volume increased 0.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 0.3 percent compared with the previous week.”

Bloomberg – “Housing Starts in U.S. Climb 8.9% to 574,000 Pace “ (12-16-09)

“Builders in November broke ground on more U.S. homes, a sign the recovery in homebuilding may carry through into 2010. Housing starts rose 8.9 percent to an annual rate of 574,000, the Commerce Department said today in Washington. Building permits, a sign of future construction, climbed to the highest level in a year.”

DSNews – “FDIC Offers Reprieve for Securities Accounting Rules” (12-16-09)

“The FDIC has finalized a new regulatory capital rule that will give lenders who package and resell mortgages a little breathing room when it comes to accounting for these assets on their books. The federal agency’s rule directly addresses FAS 166 and 167, which beginning January 1, 2010 moves most securitizations – including residential and commercial mortgage-backed securities – back onto the issuer’s balance sheet. Banks had pushed for a three-year transition period to phase in the new accounting directives. The FDIC gave them 12 months.”

DSNews – “HUD Establishes Standards for State Compliance with SAFE Act” (12-16-09)

“On Tuesday, HUD announced the publication of a proposed rule setting the minimum standards that states must meet in licensing loan originators to comply with the Secure and Fair Enforcement Mortgage Licensing Act of 2008 (Safe Act). The proposed rule was posted in Tuesday’s federal register and on HUD’s website.”

National Mortgage Magazine – “NAMB forms Legislative & Regulatory Action Fund to protect broker industry” (12-16-09)

“The National Association of Mortgage Brokers (NAMB) has announced the launch of its Legislative & Regulatory Action Fund to collect donations that will be used for protecting the interests of the mortgage broker industry. The mortgage broker profession has underwent extensive scrutiny and is being portrayed unfavorably in the mainstream media, as the housing industry undergoes sweeping legislative and regulatory initiatives to stimulate the economy and implement safeguards aimed at preventing another housing bubble. NAMB has worked hard to defend mortgage brokers against deceptive and misleading information, and has been successful in many instances. NAMB continues the fight to protect and preserve your industry.”

Housing Wire – “Fed Orders Credit Suisse to Cease and Desist” (12-16-09)

“The US Department of Treasury’s Office of Foreign Assets Control (OFAC), along with the US Department of Justice and the New York County District Attorney’s Office, separately announced a $536m settlement with Credit Suisse. The firm will pay $268m each to the US and to New York.”

Housing Wire – “FDIC OKs Delay of FAS 166, 167 Effect on Capital” (12-16-09)

“The board of directors at the Federal Deposit Insurance Corp. on Wednesday finalized a new capital rule that addresses industry concerns raised by Financial Accounting Standards (FAS) 166 and 167. FAS 166 and 167, which take effect in January, will require financial institutions to bring certain securitized assets onto balance sheets.”

Bureau of Labor and Statistics – “Real Earnings” (12-16-09)

“Real average hourly earnings fell 0.5 percent from October to November, seasonally adjusted, the Bureau of Labor Statistics reported today. A 0.5 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) more than offset a 0.1 percent increase in average hourly earnings for production and nonsupervisory workers.”

HUD – “Shopping for Your Home Loan” (12-16-09)

“The Real Estate Settlement Procedures Act (RESPA) requires lenders and mortgage brokers to give this booklet to buyers within three days of applying for a mortgage loan. RESPA is a federal law that helps protect consumers from unfair practices by settlement service providers during the home-buying and loan process.”

Looking Back:

One year ago, the California Association of Realtors projected a 12.5% increase in California real estate prices for 2009 with the prediction that REOs would be absorbed in 2009. The National Association of Realtors came out with concerns on the commercial real estate forecast and Bloomberg reported that the cost of credit writedowns topped one trillion.

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The Norris Group Real Estate News Roundup 10/12/09

Monday, October 12th, 2009

Today’s News Synopsis:

CBIA reports that sales in new-home communities are down 13 percent from August 2008. Governor Schwarzenegger of California signed a new law today, which will give regulatory relief to mortgage insurers. A survey from the National Association for Business Economics shows that 80 percent of economists believe that the recession is over.

In The News:

CBIA – “New-Home Sales Continue Their Sluggish Pace In August, CBIA Announces” (10-12-09)

“New home sales in California remained at historic low levels in August signaling that the state’s housing sector may be slow to recover from a stubborn recession. The California Building Industry Association reported today that sales in new-home communities of 10 units or more, though better than July’s steep decline, were 13 percent below August 2008.”

Housing Wire – “California Law Gives Insurance Regulators Greater Discretion” (10-12-09)

“A new law signed Monday by California Governor Arnold Schwarzenegger — SB 291 — will give regulatory relief to mortgage insurers and greater discretion to regulators in the state. Existing laws require a mortgage guaranty insurer to cease new business if it cannot maintain the required amount of policyholders surplus. The new law excludes the outstanding principal balance of any loan in default for which the insurer has established a loss reserve.”

Housing Wire – “Fed’s Agency MBS Purchases Hold Steady as Prepays Slow” (10-12-09)

“The Fed’s net purchases of MBS from mortgage giants Freddie Mac (FRE: 1.69 -1.17%), Fannie Mae (FNM: 1.41 -1.40%) and Ginnie Mae remained at $20bn in the week ending October 7, unchanged from a week earlier but lower than recent weekly transactions. The Fed is on track to buy $1.25trn in agency MBS, and intends to wind down the purchasing program before its anticipated conclusion at the end of Q110.”

Housing Wire – “Software Verifies FHA Borrower’s Ability to Repay” (10-12-09)

“Kroll Factual Data released a new software product that provides an additional layer of verification for correspondent lenders of Federal Housing Administration (FHA)-insured loans. Under new FHA guidelines, brokers won’t be required to receive independent FHA approval for origination eligibility. Brokers will instead be required to originate through an FHA-approved lender, leaving the liability of underwriting quality control and borrower’s ability to repay a broker-originated loan in the hands of the lender.”

Reuters – “Housing risks still lurk even as buyers return” (10-12-09)

“On the surface, a glimmer of confidence is returning to the battered U.S. housing market, after more than three years of gut-wrenching defaults, price slumps and foreclosures. But investors and homeowners in California, the most populous U.S. state and a benchmark for housing across the country, are bracing for another fall as emergency government support measures fall short or expire.”

Los Angeles Times – “Survey: Economists say recession is over, predict moderate, slow-paced recovery” (10-12-09)

“More than 80 percent of economists believe the recession is over and an expansion has begun, but they expect the recovery will be slow as worries over unemployment and high federal debt persist. That consensus comes from leading forecasters in a survey by the National Association for Business Economics released Monday.”

Bloomberg – “Writedowns on Mortgage Servicing Make Even JPMorgan Vulnerable” (10-12-09)

“The four biggest U.S. banks by assets may have to take writedowns on $55 billion of mortgage- collection contracts after marking them up by $11 billion in the second quarter, casting a shadow over earnings.”

Bloomberg – “Commercial-Mortgage Defaults Jump Sevenfold, Credit Suisse Says” (10-12-09)

“In September, installments on $22.4 billion of mortgages were at least 60 days late, up from $3.2 billion a year earlier, Credit Suisse analysts wrote in a report. The delinquency rate rose 33 basis points to 3.34 percent, according to the New York- based analysts led by Gail Lee. A basis point is 0.01 percentage point.”

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