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The Norris Group Real Estate News Roundup 2/3/11

Thursday, February 3rd, 2011

Today’s News Synopsis:

Freddie Mac reports the average rate for 30-year mortgages increased to 4.81%. The Labor Department said jobless claims declined last week. Freddie Mac funded $15 billion worth of multifamily transactions through its multifamily whole loan and bond guarantee business in 2010. The Treasury Department expects the government to hit the $14.29 trillion debt limit before June.

In The News:

Smart Money – “Home Equity Lending Is Back” (2-3-11)

“some lenders are cautiously re-entering the second mortgage market. The effect hasn’t registered in the national statistics yet, but regional banks are reporting significant increases. In the Midwest, Associated Bank issued nearly three times more home equity loans in the second half of 2010 compared to the same period the year before. SunTrust Bank, which operates mostly in the south and Mid-Atlantic, has issued 25% more home equity lines of credit in the past six months compared to the first half of 2010.”

Mercury News – “Mortgage rates: Average on 30-year fixed loans rises to 4.81 percent” (2-3-11)

“Freddie Mac said Thursday the average rate rose to 4.81 percent this week from 4.80 percent the previous week. It hit a 40-year low of 4.17 percent in November.”

Housing Wire – “Investment in CRE expected to grow 25% worldwide in 2011: Jones Lang LaSalle” (2-2-11)

“Global investment volume will jump 20% to 25% in 2011 to more than $380 billion, according to a report by Jones Lang LaSalle (JLL: 97.95 +0.56%) released Wednesday. In 2010, volume increased 50% from the year prior, up to $319 billion.”

Housing Wire – “Jobless claims swing back to a decline” (2-3-11)

“The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Jan. 29 decreased by 42,000 to 415,000, which was a little lower than most analysts’ estimates. Initial claims for the prior week were 457,000, which was revised upward a few thousand by the Labor Department.”

Housing Wire – “Freddie Mac multifamily funding surged in second half of 2010″ (2-3-11)

“Freddie funded $15 billion worth of multifamily transactions through its multifamily whole loan and bond guarantee business in 2010. Funding volume, which encompasses the agency’s targeted affordable housing products, is down from $17 billion in 2009.”

Housing Wire – “Yahoo! and Zillow go live with largest online real estate network” (2-3-11)

“Last July, the two firms announced that the initiative to have Zillow power all for-sale listings on Yahoo! would be live by the end of 2010. Starting Thursday, any for-sale listing that appears on Zillow, even for-sale-by-owner listings, will automatically appear on Yahoo! Real Estate. At any given time, there are an average of 4 million listings available.”

Housing Wire – “Philly Fed scholar pushes for increased quality, not quantity, of homeownership” (2-3-11)

“Alan Mallach, a visiting scholar for the Federal Reserve Bank of Philadelphia, made the case for a future U.S. housing policy that still supports homeownership for low- to middle-income families but also focuses on quality over quantity.”

Bloomberg - “Failure to Raise U.S. Debt Ceiling Would Be Dangerous, Top Obama Aide Says” (2-3-11)

“The government will hit the $14.29 trillion debt limit by the end of May, a little later than initially projected because tax revenues have been more robust than expected, the Treasury Department said in a statement yesterday.”

Looking Back:

One year ago, mortgage application volume increased by 21 percent on a seasonally adjusted basis from the previous week. Lender Processing Services reported that home delinquency rates increased to 10 percent from November. Inman and GMAC expected that job losses would increase in the real estate industry.

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 2/2/11

Wednesday, February 2nd, 2011

Today’s News Synopsis:

Mortgage application volume increased 11.3% from last week, according to the MBA. Fannie Mae and Freddie Mac are raising risk fees they charge lenders on loans they buy for resale to investors. HOPE NOW reports 1.76 million homeowners received a mortgage modification in 2010. Statistics from DBRS show 50 percent of loan modifications result in re-default.

In The News:

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

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 28, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 11.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 13.2 percent compared with the previous week.”

USA Today – “Costs for home mortgages rise as Fannie, Freddie hike fees” (2-2-11)

“For the first time since 2009, Fannie Mae and Freddie Mac are raising risk fees they charge lenders on loans they buy for resale to investors. The mortgage giants are also adding risk fees to more loans extended to people with stellar credit. To avoid a fee or to get a discount, most borrowers will need FICO scores of 740 or better and down payments of 25% or more. Lenders could absorb the cost, but most are expected to add it to loan costs within days, if they haven’t already, says Cameron Findlay, LendingTree economist.”

Los Angeles Times – “Agency warns banks of foreclosure protection for military personnel” (2-2-11)

“The new Consumer Financial Protection Bureau warned banks not to violate laws that protect active-duty military personnel from home foreclosures and high interest rates.”

Housing Wire – “Dow Jones closes above 12,000 for first time since 2008″ (2-1-11)

“The Dow Jones Industrial Average closed up 148.23 points at 12,040.16, the first time it ended a trading above 12,000 since just before the financial crisis in June 2008.”

Housing Wire – “Mortgage modifications increase 42% in 2010: Hope Now” (2-2-11)

“Roughly 1.76 million homeowners received a modification on their mortgage in 2010, a 42% increase from the year before, according to the Hope Now alliance of servicers, investors, insurers and nonprofit counselors.”

Housing Wire – “Private sector added 187,000 jobs in January” (2-2-11)

“The private sector added 187,000 jobs in January, led mostly by gains in small business, especially in the service industry, according to the ADP National Employment Report.”

Housing Wire – “DBRS finds half of mortgage modifications redefault” (2-2-11)

“When a mortgage servicer modifies the loan of a distressed homeowner, chances are 50-50 that they’ll redefault, according to a 2010 review of the sector from credit rating agency DBRS.”

Housing Wire – “CMBS takes a beating as delinquencies reach record high” (2-2-11)

“Commercial mortgage-backed securities delinquencies hit a record high, as the cumulative total jumped 20 basis points. According to a securitization report by Barclays Capital, 9.1% of all CMBS loans were 60 days or more delinquent as of Jan. 31.”

Orange County Register – “Dana Point homes take half a year to sell” (2-2-11)

“The newest ‘market time’ of Dana Point – Thomas’ math that tracks theoretical time it would take to sell all listed homes at the pace of new escrows opened — is 6.46 months. That is +11% (or roughly 19 days) in a year.”

Looking Back:

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

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

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The Norris Group Real Estate News Roundup 1/18/11

Tuesday, January 18th, 2011

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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208-TNG Radio – Norris Group 1-7-11

Friday, January 7th, 2011

Greg Norris

(Full Bio)

 

Craig Hill

(Full Bio)

The Norris Group

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This week Bruce is joined again by Greg Norris and Craig Hill. Greg is the vice president of TNG Auctions. He buys properties and resells them. Craig has been working with Bruce for 15 years, and is responsible for speaking to all potential borrowers for The Norris Group.

TNG gets many calls from new investors who tend to have some misconceptions. One of the biggest misconceptions these investors have is that they don’t need to use personal cash when using hard money loans. Craig suggests that borrowers have $30,000 for every $100,000 you desire to borrow. Also, many people believe that having credit issues will disqualify them, but credit issues can be ignored if they have an appropriate amount of cash. On the other hand, there are some investors with 800 credit scores and minimal cash reserves who will probably be disqualified.

If a house is worth $100,000, $75,000 should be the total between the purchase price and repairs. People do not understand that you cannot effectively invest in a house with very little money.

There are many lenders who will make a loan regardless of whether or not it will be profitable for the investor. The Norris Group offers investors another level of protection, because we have an appraiser with an investor background. Craig estimates that TNG’s appraiser prevents 2 to 3 investors every week from getting a bad deal. Once someone gets a deal, Craig prefers that the investor send him the property info immediately. There are many people who overlook details like “year built” or “lot size”. People treat investing in real estate like people who gamble in Vegas; they believe they cannot lose.

Sometimes investors start with something that is above their level of experience. In Bruce’s bootcamp, he takes his students to a home that is above their experience level, and asks them to estimate repairs, so they can learn to stay away from those homes. Craig has noticed that many investors tend to undervalue the cost of repairs and overvalue the sale price. People have come to Craig with an interest in buying property, but he can easily tell whether or not those properties are profitable by seeing who is selling them. If Craig notices that the seller is an experienced investor, that gives him a clue the property is not selling undervalued.

Relying on other people to give you all your buying, repairing and selling numbers is probably not a good idea, especially if those people are on commission. If an agent claims he can sell a property for a certain price which is contrary to Craig’s judgment, Craig suggests the realtor should not charge for the purchase of the property, and only take commission after the sale.

Appraisals have gotten better, in Greg’s opinion. This is partly because of a more stable market. Many short sales are pristine. To determine whether or not a property’s value is accurate, you need to look at all the properties sold within the last 3 months and pending sales. Sometimes you will see houses pending at a high number, but are also short sales; that is obviously not the right number. Sometimes the sold properties in the MLS are not actually sold. You need to know when to speak to a Realist about whether or not a sale occurred.

One of Greg’s most difficult jobs is to appraise a property for the future. He has to take into account which season he will be selling in. This winter has been odd for TNG, because half our properties are pending. Usually properties take longer to sell in the winter. Greg attributes this to the lack of inventory. There are not an overwhelming number of REOs on the market, so sellers still have some power. Also, TNG probably has the only fully repaired product. Greg has gotten better at pricing as well.

It is still hard to know what an appraiser will appraise a TNG house for. Currently, Greg’s least likeable appraisers work for VA, and FHA appraisers are now better to deal with, because FHA allows Greg to use appraisers that understand how to properly appraise a fully repaired house. Appraisers have recently taken a cut in their pay, so they may not look closely at your property unless you get their attention.

Getting a hard money loan is very costly. Craig has received calls from investors who hung up immediately after hearing his hard money interest rates. However, using hard money over a regular, cheaper loan gives you more freedom to do more and make more. One benefit of using hard money loans is that you don’t have to fear not finding necessary cash. When you have a business relationship with someone who is counting on your closing, you cannot go knocking around the neighborhood to find a quick $100,000.

There are some occasions where people receive a “yes” from a lender, but later get cancelled on. If TNG says yes to a deal, the deal is done and funded. TNG only gives borrowers a hard time during the initial process, so that we can know the deal is going to be profitable. This is why agents and escrows like working with TNG, because they know that if TNG gives a commitment, then the deal is going to work.

People might think that TNG’s business model is very simple and easy to replicate, but it isn’t. We have built good relationships with our business partners, which allows us to do business with ease. TNG even passes on a few deals just to maintain respect from its partners. Building a team that trusts you can take years.

When Bruce and Craig first met, the common idea of value was what someone paid for it. If a piece of property was said to be worth $90,000 but was sold for $60,000, then the value was believed to be $60,000. Bruce and Craig disproved this idea, but it was very difficult for Craig to approve Bruce’s loan.

All of Bruce’s seminars make it easier for Craig to do business, because many of TNG’s new clients know a lot about the company. Many of TNG’s clients have had the opportunity to hear Bruce speak, and they’ve researched TNG through our website. This helps Craig as a lender because not only do his clients know how TNG conducts its business, but they also know that we are trustworthy. Some of Craig’s clients trust TNG’s decision making ability more than their own, and that is why they work with him.

Greg’s favorite type of inventory are standard track homes. Greg does not like properties on large lots. Anything over 20,000 square feet is usually bad inventory. Also, he does not like areas that are poorly planned. For example, there are some neighborhoods where there may be one property built in 1960 next to another property built in the 1970s. There are exceptions to this, but Greg prefers to buy safer inventory with more mass appeal. Newer homes are typically more attractive, and they require fewer repairs. Greg has been surprised by how many people are still more attracted to larger homes. He does not mind buying properties on small lots so long as that kind of inventory is selling well in its area.

When Greg is estimating a property’s value, he tries to think of what a property’s resale value will be after 30 days. He has to consider what it will take to attract a buyer within 30 days. There are occasions when he must cut his values, because 5 REOs drop into the market at one time. Greg reviews his asking price once a week for every property TNG owns.

Greg has had a lot of trouble with pool homes. He has spent $25,000 on pool repairs, which wiped out his profit. However, pool homes are not always problematic, and Greg has profited from buying them.

Greg prefers to rely on his own knowledge at a trustee sale. Sometimes he receives friendly advice from other people, but not often.

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

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The Norris Group Real Estate News Roundup 1/6/11

Thursday, January 6th, 2011

Today’s News Synopsis:

According to Freddie Mac, rates on 30-year FRMs fell to 4.77% this week. Altos Research reports home prices fell 1.63% in December. Timothy Geithner requested from Congress to increase the national debt limit. The current debt limit is $14.29 trillion, and the nation’s current debt level is just $335 billion short of the limit.

In The News:

Research Institute for Housing America – “A Study of Real Estate Markets in Declining Cities” (1-6-11)

“many places will likely resume growth and fully recover within the next decade or so. This is almost certainly not to be the case for all metropolitan areas. In fact, a number of large metropolitan statistical areas (MSAs) experienced severe recessions during the latter half of the 20th century and prior to the Great Recession and never fully recovered or took many years to do so”

USA Today – “30-year fixed mortgage rate dips to 4.77% average in latest week” (1-6-11)

“Freddie Mac says the average rate on 30-year mortgages dropped to 4.77% from 4.86% the previous week. It hit a 40-year low of 4.17% in November.”

Realty Times – “Consequences of Defaults and Foreclosures” (1-6-11)

“One of the most startling impacts of a foreclosure appears on one’s credit report. Your credit score may plummet by 200 to 300 points. In this economic climate, where credit lending standards are already tightened, you may then find it difficult to do everything from buying a car to renting an apartment. What’s worse is that the notation of foreclosure stays on your report for up to seven years.”

Housing Wire – “Altos: Home prices down 1.63% in December, new listings even lower” (1-6-11)

“Home prices fell 1.63% in December, but new listings are hitting the market well below that, according to analytics firm Altos Research. Prices fell in each of the 27 markets studied by Altos. Prices fell 4.77% in San Francisco — the steepest drop of any area, 3.71% in San Diego”

Housing Wire – “Commercial mortgage modifications become huge trend in just two years” (1-6-11)

“Of all loan modifications in the commercial mortgage industry over the past decade, 96% occurred in the last years, according to Standard & Poor’s. The rating agency said 354 commercial real estate loans with a principal balance $15.6 billion were modified from January through November, up significantly from 216 loans valued at $7.06 billion for all of 2009.”

Housing Wire – “DebtX November CRE loan volume down to 80.3%” (1-6-11)

“The decline in the value of commercial real estate loans in November was due primarily to an increase in Treasury rates”

Housing Wire – “Geithner urges Congress to increase national debt limit” (1-6-11)

“Geithner wrote a letter to Congress Thursday requesting an increase in the federal debt limit. According to his numbers, the current debt limit set last February is $14.29 trillion. As of the writing of the letter, the outstanding debt subject to the limit standards is $13.95 trillion — just $335 billion shy of the maximum.”

Housing Wire – “Equator’s Vella: Short sales set to swell 25% in 2011″ (1-6-11)

“With one in five borrowers underwater on their home and an estimated 1.5 million foreclosures scheduled for 2011, the opportunity for short sales will be better than ever. Investors usually see a 20% to 30% better execution on a short sale versus an REO sale when it comes to loss severity. With the foreclosure volume, current and pending REO inventories, servicers will be pressed to do more short sales in 2011.”

Housing Wire – “New Fannie interactive Web tool provides foreclosure avoidance options” (1-6-11)

“Fannie Mae’s new WaysHome interactive multimedia tool walks homeowners through options if they are struggling to pay the mortgage — even allowing them to select a character and be a part of an interactive video.”

Looking Back:

One year ago, California Governor Schwarzenegger announced a new home buyer tax credit. The Mortgage Bankers Association reported that mortgage applications had increased by .4 percent from Christmas. The FOMC confirmed plans to buy $1.25 trillion in mortgage-backed-securities from Freddie Mac, Fannie Mae and Ginnie Mae. Eugene Ludwig believed that commercial real estate losses would break historical records in 2010.

For m ore 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 12/14/10

Tuesday, December 14th, 2010

In The News:

Mortgage Bankers Association – “MBA Study Shows Mortgage Banker Production Profits Improved with Higher Refinancing Activity in Third Quarter 2010″ (12-14-10)

“Independent mortgage banks and subsidiaries made an average profit of $1,423 on each loan they originated in the third quarter of 2010, up from $917 per loan in the second quarter of 2010, according to the Mortgage Bankers Association (MBA)’s 3rd Quarter 2010 Mortgage Bankers Performance Report released today.”

Mortgage Bankers Association – “Commercial/Multifamily Mortgage Debt Outstanding Down 1.3 Percent on Bank and CMBS Balances in 3Q 2010″ (12-14-10)

“The level of commercial/multifamily mortgage debt outstanding decreased in the third quarter, to $3.2 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data.”

Housing Wire – “Robo-signing hangover slows foreclosures in Western states” (12-14-10)

“Foreclosure sales in Arizona, California, Nevada, Oregon and Washington fell 38.7% in October and November, according to ForeclosureRadar.”

Los Angeles Times – “Survey: Consumers prefer small banks, credit unions” (12-14-10)

“Americans continue to prefer small banks and credit unions to larger institutions, according to an annual survey of satisfaction with financial services. Small banks held steady in this year’s American Customer Satisfaction Index, with a combined rating of 80 out of 100. Major banks scored mainly in the high 60s, with only Wells Fargo & Co. exceeding 70.”

CNN - “Obama’s mortgage mod plan is still lacking” (12-14-10)

“Last April, the Congressional Oversight Panel found the program to be struggling to get off the ground despite having been in action for a year and a half. The latest evaluation of the Home Affordable Modification Program (HAMP) came out Tuesday and the result was — same deal.”

San Francisco Chronicle - “Loss of estate tax leaves hole in state budget” (12-14-10)

“The proposed tax deal in Congress would fail to deliver about $2.7 billion in estate tax revenues California was counting on receiving this fiscal year and next, but some say the state should never have expected those revenues in the first place.”

Housing Wire – “Strategic defaulters opt to continue paying on second liens” (12-14-10)

“Borrowers who strategically default on their first mortgage often continue to pay on home equity lines of credit, according to a new white paper from two authors with the Philadelphia Federal Reserve.”

Housing Wire – “Mortgage fraud suspicious activity reports up 7% in first half of 2010″ (12-14-10)

“Lenders filed 35,135 suspicious activity reports indicating mortgage fraud in the first half of 2010, up 7% from the same period a year ago, according to the Financial Crimes Enforcement Network.”

Housing Wire – “Ginnie Mae earnings up 6% for fiscal year, issuance down” (12-14-10)

“Ginnie Mae earned $541.5 million in its fiscal year of 2010, up 6.2% from the previous year, but issuance dropped for the first time since 2006.”

Housing Wire – “LendingTree survey shows 40% of homeowners took first loan offer” (12-14-10)

“Roughly 40% of current homeowners surveyed by the online lender exchange LendingTree obtained just one mortgage loan quote before purchasing their home. LendingTree and the Harris Interactive surveyed 1,317 homeowners online, and of those 96% said they compare prices when shopping for anything – except mortgages. This, according to LendingTree, explains why only 28% surveyed feel confident they got the best possible deal on their loan.”

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 12/06/10

Monday, December 6th, 2010

Today’s News Synopsis:

The Federal Reserve expects housing starts to reach 600,000 by the end of the year. Fannie Mae is suspending foreclosure evictions from Dec. 20 through Jan. 3, 2011. HUD representative Shaun Donovan claims the Homeless Prevention and Rapid Re-housing Program prevented or ended homelessness for 750,000 Americans.

In The News:

Army Times – “Consumer Watch: Walking away from your mortgage” (12-6-10)

“Nationwide, about 2.5 million homeowners have lost their homes in the last four years, according to the Center for Responsible Lending. Even some homeowners who could afford to make their payments have walked away because their homes have lost so much in value. Meredith says he won’t go that route. ‘I could not in good conscience walk away and dump the burden on the bank, who would then ask the taxpayers for another handout,’ he said.”

Orange County Register – “Calif. housing recovering, coast first” (12-4-10)

“The housing market has begun to stabilize in some of the coastal regions in the state. While credit unions have been willing and able to lend, demand for mortgages has been lean, despite the historically low interest rates. Members are either over leveraged, or concerned about future employment to make such a large purchase. Once individuals feel more secure about their income, they will be much more likely to make long-term purchases.”

Wall Street Journal – “US Housing Market To Rebound In 2011 -Freddie Mac Economist” (12-6-10)

“Macroeconomic factors suggest the U.S. housing market will improve in 2011, Freddie Mac’s chief economist said in a note Monday.”

USA Today - “Bernanke: Economy is fragile ‘very close to the border’” (12-6-10)

“Federal Reserve Chairman Ben Bernanke is stepping up his defense of the Fed’s $600 billion Treasury bond-purchase plan, saying the economy is still struggling to become ‘self-sustaining’ without government help.”

Housing Wire – “Chicago Fed sees housing sector improvement in 2011″ (12-6-10)

“The Fed forecasts that housing starts will reach 600,000 by the end of the fourth quarter of 2010 and increase to a total of 690,000 starts in 2011. The total number of housing starts in 2009 was 550,000.”

Housing Wire – “Fannie Mae to suspend foreclosure evictions for the holidays” (12-6-10)

“Fannie Mae will suspend foreclosure evictions from Dec. 20 through Jan. 3, 2011. The government-sponsored enterprise routinely halts the foreclosure process during the holiday season. Fannie currently holds a 4.56% serious delinquency rate on its mortgage portfolio, totaling more than $798 billion worth of loans as of October.”

Housing Wire - “HUD program keeps 750,000 Americans from homelessness” (12-6-10)

“The U.S. Department of Housing and Urban Development prevented or ended homelessness for 750,000 Americans through its Homelessness Prevention and Rapid Re-housing Program, the department’s secretary Shaun Donovan said Thursday.”

Housing Wire – “MBA says FHA indemnification proposal penalizes responsible mortgage lenders” (12-6-10)

“In October, the FHA proposed a new regulation forcing lenders to reimburse the government for insurance claims on defaulted mortgages that did not meet its guidelines within five years of the endorsement. It would require all new and existing lenders with the ability to insure loans on behalf of the Department of Housing and Urban Development to meet stricter performance standards.”

Bloomberg - “Your Underwater Mortgage Needs a Blow-Up Raft: Caroline Baum” (12-6-10)

“How can such a small sector of the $13.3 trillion economy exert such a strong downward pull on the whole thing? Real residential investment, as it’s formally known in the gross domestic product report, accounted for 2.4 percent of GDP in the third quarter. At its frothiest, in 2005, that share stood at 6.2 percent, a three-decade high.”

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 11/30/10

Tuesday, November 30th, 2010

Today’s News Synopsis:

According to Case-Schiller index, property values increased 0.6% year over year.  On the other hand, Freddie Mac reports that home prices decreased 3.1% from the 3rd quarter of 2009. Zillow claims interest rates increased to 4.3% last week.

In The News:

Bloomberg - “Home Prices in U.S. Cities Rose Less Than Forecast” (11-30-10)

“The S&P/Case-Shiller index of property values climbed 0.6 percent from September 2009, the smallest gain since January, the last time prices declined year over year, the group said today in New York. The increase was smaller than the 1 percent median forecast in a Bloomberg News survey of economists.”

San Francisco Chronicle – “Consumer confidence in Nov. hits 5-month high” (11-30-10)

“A monthly survey shows Americans’ confidence in the economy rose in November to the highest level in five months amid more hopeful signs.”

Housing Wire – “Zillow: 30-year mortgage rates trend upward to 4.3%” (11-30-10)

“Reversing last week’s trend, the 30-year, fixed-mortgage rate increased for the week ending Tuesday to 4.3%, according to the Zillow Mortgage Marketplace weekly update. The rate rose from 4.27% the week prior.”

Housing Wire – “MGIC changes underwriting guidelines in response to market conditions” (11-30-10)

“Starting Dec. 1, MGIC will insure mortgages with a debt-to-income ratio up to 45% if the borrower has a credit score equal to or greater then 740. The loan must also be either a fixed-rate product or minimum 5-year adjustable-rate.”

Housing Wire – “Freddie Mac: Home values down 3.1% in 3Q” (11-30-10)

“U.S. home values fell 3.1% in the third quarter from last year, according to the Freddie Mac conventional mortgage home price index.”

Bloomberg - “Banks in U.S. Resisting Calls to Repurchase Fannie Mae, Freddie Mac Loans” (11-30-10)

“The two government-owned mortgage companies are enforcing contracts that require lenders to buy back loans that didn’t meet underwriting standards. At the end of September, the companies reported, banks hadn’t responded to $13 billion in buyback requests. A third of those were at least four months old and Freddie Mac has begun to assess penalties for the delays. ”

Orange County Register – “Late pay on O.C. mortgages stabilizes” (11-30-10)

“According to CoreLogic’s latest late-mortgage report, 7.29% of Orange County home-loan borrowers as of September are 90 days-plus late with their house payments.”

Looking Back:

One year ago, Edward Pinto expected 20 percent of FHA’s mortgage loans to default. The Federal Reserve bought $16 billion worth of mortgage-backed securities in one week. According to Michael Barr, Over 650,000 mortgage modifications were being processed, and over 375,000 borrowers would receive permanent modifications by the end of 2009. A survey from Barclay’s showed that as a U.S. citizen’s net worth increases so does the proportion of their wealth invested in real estate.

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

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The Norris Group Real Estate News Roundup 11/23/10

Tuesday, November 23rd, 2010

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 11/15/10

Monday, November 15th, 2010

Today’s News Synopsis:

Fed Governor Sarah Raskin expects 2.25 million foreclosures to occur this year and the next. Fiserv believes home prices will drop 7.1% over the next 12 months. According to the CAR, 66% of first time home buyers can afford an entry-level home in California. Josh Levin of Citigroup predicts housing demand may not catch up to supply until 2014.

In The News:

Xinhuanet - “Fed: Projections remain grim for future U.S. home foreclosures” (11-13-10)

“The U.S. Federal Reserve’s projections remain very grim for the foreseeable future, as it expected about 2.25 million foreclosure filings this year and again next year, and about 2 million more in 2012, Fed Governor Sarah Raskin said on Friday.”

CAR - “First-time buyer housing affordability improves slightly in Q3″ (11-15-10)

“The percentage of first-time buyers who could afford to purchase an entry-level home in California stood at 66 percent in the third quarter of 2010, according to C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI). In the second quarter of 2010, the Index was a revised 65 percent and was 64 percent in the third quarter of 2009.”

CNBC - “Is It Time to End the Mortgage Tax Deduction?” (11-15-10)

“Home buyer tax credits and mortgage bailouts included, the mortgage-interest deduction is the biggest ongoing boon to the housing market and one of the costliest deductions in the U.S. tax code. It will slice an estimated $131 billion out of tax revenue in 2012.”

Housing Wire – “Flagstar closes sale of $474 million non-performing loans” (11-15-10)

“Flagstar Bancorp (FBC: 1.28 -3.03%) completed the sale of about $474 million residential first mortgage, non-insured, non-performing loans, as the largest bank holding company in the Midwest sheds underperforming assets.”

Housing Wire – “Fiserv expects another big drop in home prices next year” (11-15-10)

“Despite national gains in home prices through the second quarter, Fiserv, a financial services technology provider, said it expects a 7.1% drop over the next 12 months with some markets falling into a double-dip.”

Housing Wire - “BarCap: US Treasurys holdings increase 23% in 3Q” (11-15-10)

“Holdings of U.S. Treasurys increased 23.2%, or $41.1 billion, at the top 50 bank holding companies in the third quarter, according to investment bank Barclays Capital.”

Housing Wire – “S&P predicts more home price declines through 2011″ (11-15-10)

“Standard & Poor’s analysts believe home prices will drop between 7% and 10% through 2011, erasing any improvements prices have recently made.”

Housing Wire – “Monday morning cup of coffee” (11-15-10)

“The Council of the District of Columbia approved the Saving DC Homes from Foreclosure provision that requires lenders to engage in a four-month mediation period with delinquent borrowers to discuss payment options before foreclosure.”

Bloomberg - “U.S. Housing Excess Seen Lasting Four More Years: Chart of the Day” (11-15-10)

“So many U.S. homes are unoccupied these days that demand may not catch up with the supply until 2014, according to Josh Levin, an analyst at Citigroup Inc. Last quarter’s vacancy rate was 10.96 percent, near a peak of 11.05 percent in the second 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 200 podcasts in our free investor radio archive.

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