California Real Estate Investing News

Posts Tagged ‘David Crowe’

Borrowing By Consumers Increases in April by $20.5 Billion

Friday, June 5th, 2015





Construction spending up 2.2% in April
CoreLogic: Home prices rose 6.8% annually in April


Today’s News Synopsis:


Aaron Norris of the Norris Group gives the news of the week in this week’s real estate headline roundup video.  The amount of money borrowed by consumers increased in April by $20.5 billion.  The Mortgage Bankers Association reported expenses by mortgage bankers increased in the first quarter and stand at an average of $7,195 per loan.  Over 200,000 new jobs were added, yet unemployment continues to increase.


In The News:

Bloomberg – “Consumer Borrowing in U.S. Increased $20.5 Billion in April” (6-5-15)

“Consumer borrowing in the U.S. rose more than forecast in April, boosted by the biggest increase in revolving credit in a year.  The $20.5 billion advance in total borrowing followed a $21.3 billion gain in the prior month that was larger than previously estimated, Federal Reserve figures showed Friday in Washington.”

DS News – “Housing Market Will Benefit From Increased Job Gains, Economists Say” (6-5-15)

“While the nation’s unemployment rate (5.5 percent) and the number of unemployed persons (8.7 million) for May 2015 remained virtually unchanged from the previous month, the number of jobs added in May increased substantially from April up to 280,000, according to the May 2015 Employment Summary released by the Bureau of Labor Statistics (BLS) on Friday.”

Housing Wire“Mortgage banker expenses continue to rise” (6-5-15)

“According to a chart by the Mortgage Bankers Association, in the first quarter of 2015, total quarterly production expenses averaged $7,195 per loan, 311 basis points, among independent mortgage bankers and bank subsidiaries.”

DS News – “Data Shows April Was Prosperous For Housing” (6-5-15)

“With new home sales up by 26 percent, new home inventories slightly increasing, new home prices on the way up, and existing-home sales hitting a nine-year high, National Association of Home Builders (NAHB) Chief Economist and SVP David Crowe declared April to be a ‘good month for housing.'”

Housing Wire – “Economy adds 280K jobs but unemployment ticks up” (6-5-15)

“If the Federal Reserve is looking for cover in raising interest rates, they got it with the May jobs report.  The June 16-17 FOMC meeting will be interesting as the May employment report proved very strong led by payroll growth and, very importantly, an uptick in wage pressures.”

DS News – “New HUD Website Offers Free Online Housing Counselor Training” (6-5-15)

“The U.S. Department of Housing and Urban Development (HUD) has announced the launch of a new website,, that is designed specifically for HUD-approved housing counseling agencies, according to an announcement on HUD’s website.”

Bruce Norris of The Norris Group will be speaking at the Cutting Edge Financial Tactics Brunch on Saturday, June 6.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.


Looking Back:

Out of 350 metropolitan areas, 56 showed signs of improvement by being at normal levels this month.  Mortgage rates increased for the first time in six weeks with 30-year rates at 4.14% and 15-year rates at 3.23%.  In addition, the amount of mortgage credit available increased the previous month by 1.14%.

Copyright: Image from


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.



David Crowe Joins Bruce Norris on the Real Estate Radio Show #415

Tuesday, December 23rd, 2014



David Crowe

Chief Economist and Senior Vice President of NAHB

(Full Bio)


Bruce Norris is joined again this week by Dr. David Crowe. Dr. Crowe is Chief Economist and Senior Vice Pretsident of the National Association of Home Builders. He is responsible for NAHB’s forecast of housing and economic trends, survey research and analysis of the homebuilding industry, and consumer preferences as well as micro economic analysis of government policies that affect housing.

David has a lot of experience that would lead him to be a very good person to have this position, including his study in demographics. Bruce asked about the role of the NAHB as it relates to the building industry. David said they are the representatives of the homebuilders in Washington. Their primary focus is sitting in the nation’s capital and watching over the interests of the homebuilding industry, not just homebuilders but all the industries dependent on building homes. As a result of that, they do a lot of education, trade shows, and research to try to inform both the builders and public on what is happening in housing.

Bruce asked if the NAHB considers itself part of a team in the sense that you work with the Mortgage Bankers Association or NAR together to influence positive outcomes for everyone. It is very much a team effort in Washington. Most all housing issues have an effect upon all of their interests, especially with realtors, mortgage bankers, and some of the lesser known housing organizations. This could include the banking organizations since so much is tied up in what happens in the mortgage markets as well as the appraisal institute.

Bruce asked if there was any legislation that passed in 2014 that either concerned him or made him happy. David said unfortunately there was hardly any passage of legislation in 2014 since it was a slow year. They were fighting hard to get some legislation to clarify what the position of the government is related to housing finance and Fannie Mae and Freddie Mac. None of the team of this correlation has been successful in that regard. Bruce asked if the rules are set now for the financing part of it. Are the builders understand what changes took place and what Dodd-Frank will not turn into and if that is just as valuable as what it did ultimately turn into. There is still a lot of uncertainty out there about where the housing finance industry is going. Some of the regulations behind Dodd-Frank have yet to be clarified or defined. Even with the rules that have been defined, there is still enough haziness there that there is some uncertainty. They still have work to do to get the housing finance business back in perfect shape again.

Uncertainty is a very important word because when you are in the lending business, and part of the uncertainty is if we write a certain type of loan, we may end up getting to buy it back. This does not just affect realtors, but builders as well since you cannot get financed the same buyers that you would years ago. One of the terms that has been tossed around is the put back risk, and this has been a big dampening factor on mortgage originators since the potential to have that mortgage returned to them for often some inconsequential issues that do not really affect the core of the mortgage. They have been working on this, and the Federal Housing Finance Agency that is a regulator of Fannie Mae and Freddie Mac have made some important announcements and efforts to alleviate some of the uncertainty. He is very hopeful that 2015 will see some improvement in that regard.

In the area in which Bruce lives, the downgrading of the value of the FHA loan limits was a problem. In Riverside County, construction is generally going to have a home price over $350, and this turned out to be the maximum loan limit. It went from $500 to $350. This recent ruling that Fannie Mae and Freddie Mac will loan on 3% could be a big help to the builders at least in his area of California. Those reduced limits were harmful, particularly on new homes which tend to sell at the upper end of the spectrum. It is hopeful that this new permission for Fannie and Freddie to go down two lower down payment loans will help in that regard.

Bruce asked when he looks back at his forecast for 2014, were there any disappointments or surprises? David said there were both disappointments and surprises. The real surprise was the way the year started, although he would say California was saved from most of this. The rest of the country suffered from unusually bad weather, particularly snowy weather. That really held up construction and made it impossible to conduct construction or to get the materials and workers to the site. They saw a very low beginning to the year, and that unfortunately stretched halfway through the year. A lot of the part of the year picked up nicely. However, as a whole the year will not be as good as he expected at the beginning because of that poor start.

Bruce asked David what he sees for 2015, to which he said he sees an improvement in 2015 for two reasons. One is they did not live up to the muster in 2014, so that left an even larger amount of pent up demand out there of folks who went through the normal life cycles that you would expect. This includes changes in jobs, marriages and children, and therefore they would not see them buying another house. This pent-up demand is one part of the 2015 promise. The other is very good economic conditions. We had strong employment growth throughout 2014, very low mortgage rates, and affordable house prices. Even though prices have been rising and people are regaining some of their equity, we still have overall good economic growth. Those are all the right ingredients to see a decent year, though not a run-away year. However, there is something in the order of a 25% increase in single-family building between 14 and 15.

In California, if you add up all the construction of single-family homes over the last six years, you do not equal the number of homes built in 1960. That tells you where the California market has been, which has been a depression mode for half a dozen years. However, it is starting to see some growth and faster growth than in the beginning of the recovery where it was still lying low at the bottom. The percentage growth looked nice and promising in California since we are starting at 3. It is still an improvement, and this is a big driver for California especially in some areas.

The one thing that makes Bruce scratch his head is the lack of the decision-making by the millennial generation that would have gone on for most other generations. Bruce asked if the waiting to get married and own a home is the new normal for them or if the recession really had a big impact on their capability of making that decision. This is a question they are constantly trying to get better answers. There really were two causes. The recession hit the younger people worse since they have a higher unemployment rate even though it has improved. They have been much more reluctant to move on, and a double of the share that normally lives at home is living at home now. They are saddled with student debt, and they have not had the time to accumulate down payment. If they are working, they are often in jobs that require them to be mobile. This means from this standpoint they are much less likely to be a homeowner.

We had lower household formations, and those that have formed have almost all become renters. He does not think this is a long-term behavior. If you ask preferences of younger people, they do say they want to become homeowners. However, both of their abilities at this point in time and preferences are being footloose. Bruce asked if uncertainty plays a part in, for example, a 190-year old living at home when the Great Recession hit and prices went down by 55% in California. They watch their parents lose equity or lose their home. Bruce asked David if when you have your Master’s Degree you would look back at this moment and think owning a home is not worth it. David said yes and that this semblance of the depression psychology that hit our parents and grandparents had something to do with it. He does not think it is severe, but one that will be overcome. He thinks their experience and their view of other’s experiences may have colored their future.

The strongest correlation they find for some homebuyers is marriage and children, which they also postponed. However, the key word here is postponed and not eliminated. He does not think the first-time homebuyer will be a big part of next year, but they still have another year before we will start seeing the oldest of that millennial generation start hitting the clock ticking and their own financial wherewithal becoming more solid. He thinks we will see them re-enter that path that we saw past generations experience.

What is interesting is that Bruce got his start because he was able to buy properties and have them go up in California. He is a big believer in owning something, but he thinks one of the things young people have a hard time appreciating is the interest rates of today. He was in the business in 1980, and he refinanced his house to become an investor at 17 ½, so he cringes when he sees articles that say interest rates soared above 4%. Relative changes matter, so if you just experienced 3 ½, then 3 ¾ – 4 doesn’t sound so bad. Bruce said he can appreciate this, but one thing we really lack right now is volatility. We have not had a Fed fund rate change for 5-6 years, and the year he happened to get in they had 21 Fed fund rate changes. The fact that they have been so solid leads one to believe they will always be solid, but he does not think this is true. He believes the very reason we are going to have better sales and starts next year is because the economy is better. If the economy is better, this means there is a lot more demand on capital, which means rates will rise.

Bruce asked about the baby boom generation and how this demographic presents opportunity for builders but also cause some problems. David said it presents opportunities because although the larger share of people over 55 or 65 do not do anything and stay where they are. This does not mean that, given there is a larger number of people in that age group, that it does not matter. The builders who specialize in the 55+ market, both in the restricted 55 only and general age group, have been doing very well since many of those people have lived in their house for a long time. While they may have lost equity in the downturn, they had equity and retained it. They are able to move forward. There is a pretty decent market and new homes catering to those who had passed the age of maternity.

The challenge is the many of them who do not have equity. They either refinanced or had recently moved. For whatever reason, they do not have the means necessary to move forward. This is where the challenge is in builders finding products that will satisfy that group and still be able to afford it. Going 10-15 years out, that generation is going to produce a lot of vacant homes. When they are adding to the inventory more than builders, you would normally build an entire year in California terms. This is a good ways out since the oldest baby boomers are 68. Even if, for health or other reasons, they start moving away from their own home into other facilities or in with their family, this is still another ten years away for the forefront of that group and 15-20 years before the bulk of them start doing this. It is a distance away, and in that time they are going through an enormous demographic shift from becoming minority majority nation. Many people other than the white culture are living in expanded households. David is not as concerned about the larger suburban homes that the baby boomer lives in that when they finally move out leave a big house available. There is a sufficient demand coming along with multi-generational houses, particularly among cultures other than the white culture that will find them exactly to their liking.

Bruce asked if the oil boom in the United States over the last few years has presented the builder with opportunities in selective areas. David said this is a double-sided coin. It has certainly boosted the economies in the middle part of the country. The oil and energy states from Texas up to North Dakota have done very well. If you look at recovery rates and look at where they are relative to where they should be, the center part of the country is doing quite well. This is because they did not collapse as badly. The challenge has been those in the very healthy energy sector that have taken all the employees away. They have had a very hard time finding somebody to build the houses, drive the trucks to bring the materials, and do the service because wages have been higher in the energy sector. This has been their challenge which they have met and been able to meet the demand for houses. It has been a struggle.

Bruce was in Midland, Texas two years ago visiting his granddaughter who was on a mission for school. When he landed there, he asked a few questions related to real estate. He wondered why there were no rental houses and very little new homes. He was completely dumbfounded and did not understand it, and neither did they. You go over there with no experience and make $85,000 while over here we have to pay McDonald’s workers $25 an hour to flip a hamburger. This is how tight the labor market is. Somebody is a framer for about 3 days, then they are on an oil rig where they do not know what they are doing and make twice as much. This has been a challenge, and their builders have often, particularly apartment builders, have just imported their trade, had them build houses, then go back home.

Apartment construction has been a booming sector of construction. If you consider whatever the early 200s were, it was the last time the market was in some reasonable balance. We are building more apartment units now than we did in the early 2000s. This is because a lot of the younger generation that has formed a household are renting rather than buying. Bruce wondered if these are amenity-driven. David said this is part of it. The multi-family developers are very sophisticated. They are not just putting units up, but putting up what will rent. Younger people do want amenities and closer to where they want to work and socialize. They want to be able to have these gathering places.

Bruce asked about the construction business as far as the level of contribution to GDP growth. He said it is not back to where it used to be. It is still about 3% of GDP right now, both new construction and remodeling. It should be 5-5 ½%, so we are still struggling. In terms of single-family homes across the country, we are only halfway back to where we need to be.
Bruce looked at a chart this morning, and the 3% figure short of the downturn of 2009-2011 has been 55 years since we have been 3% GDP contribution. This is a big deal, and he hopes someone is Washington is paying attention to this.

When Bruce was growing up the American dream was to own a home or two and get yourself into a new one. Bruce wondered if this is still a dream and if the policies are lending that opportunity to people. David said it is still a dream, but the policies are tough to get there. We have building codes that are personally reasonable to expect the government to figure out. In other cases, they are extreme and have gone over the top in requiring things that are not safety and health but nice to have. This is fine, but if somebody is in the market of buying nice is not a luxury. Codes and regulations, both development and the needs for requirements for the Federal government’s permissions slows down construction and makes it higher. This is why homebuilders have an association in Washington to watch out for that kind of thing. As we have discussed, the ability to receive financing remains particularly challenging for younger people. There are a lot of things out there we have to keep watching in order to at least allow people that option.

Bruce asked if he thinks the punitive stage has passed now as far chasing down lending policies and punishing everyone involved. Bruce wondered if we are moving forward and asking what we can do to get a normal market back. There was a certain amount of people causing a problem in housing, so you are going to suffer for it. He thinks this is prevalent in policy-makers’ minds and their way of saying they will take care of it. The pendulum swung way too far the other way. There is still a lot of nervousness about low-down payment loans, even though they were very successful for many years. They still worry about whether appraisals are right and whether 8 months can justify a certain monthly payment. They are not quite out of this fear yet that we suffered during the collapse.

One of the problems with them using the term that they caused it in that saying you punish the “you” you punish the “we.” It has been very tough for the person who wants to get in to own a home.

David Crowe Radio Show

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

The Norris Group Real Estate News Roundup 10/27/11

Thursday, October 27th, 2011

Today’s News Synopsis:

In today’s news, the pending sales for existing homes fell 4.6& in the U.S., according to Bloomberg.  Mortgage rates are holding steady at their lowest recorded in almost 60 years.  Last week the number of people filing for unemployment decreased to 402,000, although the number of unemployed is still high.

In The News:

Bloomberg “Pending Sales of U.S. Existing Homes Fall 4.6%” (10-27-11)

“The number of contracts to purchase previously owned U.S. homes unexpectedly fell in September as lower prices and borrowing costs failed to support demand.”

Housing Wire“GDP growth 2.5% in third quarter” (10-27-11)

“Real gross domestic product grew at an annual rate of 2.5% in the third quarter when compared to the previous three months, the Commerce Department said Thursday.”

NAHB “Remodeling Activity Remains Slow Under Current Economic Conditions” (10-27-11)

“The current state of the national economy continues to affect the remodeling industry, according to the latest National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The index dropped to 41.7 in the third quarter from 43.9 in the second quarter, after having reached a four-year high of 46.5 in the first quarter. An RMI below 50 indicates that more remodelers report that market activity is declining than report that it is increasing.”

Los Angeles Times“Weekly jobless claims dip to 402,000 but still are high” (10-27-11)

“New jobless claims dipped last week to 402,000, another somewhat encouraging sign for the still-troubled economy — though still too high to make a dent in the unemployment rate.”

Housing Wire“Republican blueprints mortgage market without Fannie, Freddie” (10-27-11)

“Rep. Scott Garrett (R-N.J.) proposed his idea of a future mortgage market Thursday, one with new underwriting standards and transparency but without Fannie Mae, Freddie Mac or the upcoming risk-retention rule.”

DS News “Fixed Mortgage Rates Show Little Movement” (10-27-11)

“Fixed mortgage rates showed little change for the second consecutive week amid mixed consumer confidence and housing data, and remain near their 60-year lows.”

CNN Money – “Small banks still stuck in federal bailout” (10-27-11)

“Hundreds of struggling small community banks could be stuck in the federal government’s much-maligned bank bailout program, a watchdog agency warned in a report released Thursday.”

DS News “Delaware AG Sues MERS” (10-27-11)

“Delaware Attorney General Beau Biden filed suit Thursday against MERSCORP and its subsidiary, Mortgage Electronic Registration Systems (MERS). Biden charges MERSCORP with violating Delaware’s Deceptive Trade Practices Act.”

Inman “Redfin raises $14.8M in new funding” (10-27-11)

“Technology-based real estate brokerage Redfin has raised $14.8 million in a new round of funding the company’s chief executive officer says will help it expand and weather seasonal ups and downs.”

Looking Back:

The MBA’s weekly survey showed mortgage application volume increased 3.2% the week of October 27, 2010. Mortgage bankers estimated the housing market would not recover until 2012 at least. HUD reported only 24,000 houses sold in September 2010.

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

The Norris Group Real Estate News Roundup 10/24/11

Monday, October 24th, 2011

Today’s News Synopsis:

A big story in the news is changes are being made to the refinancing program to help more homeowners who are underwater.  Campbell/Inside Mortgage Finance reported the time it takes to approve a mortgage could now take up to 60 days as opposed to 30 originally.  Realty Times reported an increase in builder confidence this month.  In select states, foreclosed homes currently owned by HUD can be purchased at only a $100 down payment.

In The News: “US announcs help for underwater homeowners” (10-24-11)

“A leading housing regulator on Monday announced changes to a government refinancing program that could help up to one million homeowners of the estimated 11 million whose homes are worth less than their mortgage.”

Housing Wire“Clogged application process extends mortgage approval timelines” (10-24-11)

“The time it takes to approve a mortgage in the United States grew from an average of 30 days to between 45 and 60 days over the past month, according to the latest survey from Campbell/Inside Mortgage Finance.”

Bloomberg “CMBS Underwriting Standards ‘Worrisome’ as Sales Surged, Moody’s” (10-24-11)

“Lenders loosened terms on commercial mortgages originated to be packaged into bonds during the third quarter as sales of the securities surged, according to Moody’s Investors Service.”

Realty Times – “Real Estate Outlook: Builder Confidence Rises” (10-24-11)

“Builder confidence is up for the month of October thanks to renewed buyer interest in select markets. This is the largest one-month gain since April 2010 when renewed confidence from the home buyer tax credit was in full swing.”

DS News – “HUD Offers REO Homes for $100 Down in Select States” (10-24-11)

“HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers.  In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home.”

San Francisco Chronicle – “Fed Wants to Ensure U.S. Housing Affordability, Dudley Says” (10-24-11)

“Federal Reserve Bank of New York President William C. Dudley said the central  bank wants to keep mortgage interest rates from rising too much and may do more  to hold down borrowing costs.”

O.C. Register“Homebuying rises in 40 ZIPs!  Yours?” (10-24-11)

“For the 22 business days ending October 6 — DataQuick’s freshest stats — the Orange County real estate market had homebuying patterns showing: 24 of O.C.’s 83 ZIP codes with gains in their respective median selling price. Overall, buyers’ prices were -3.8% vs. a year ago.”

Housing Wire “Stephens analyst expects LPS to top 3Q earnings estimates” (10-24-11)

“Lender Processing Services (LPS: 16.55 +7.47%) should easily beat third-quarter earnings forecasts after benefiting from improved foreclosure and mortgage metrics, according to one analyst at Stephens Inc.”

Los Angeles Times “California housing agency forcing foreclosures” (10-24-11)

“A state agency that provides low-interest mortgages is foreclosing on a small number of clients even though they are making their monthly payments, a state Senate watchdog group reported.  The California Housing Finance Agency is foreclosing on homes because their financially strapped owners temporarily rent them out and move into cheaper rental properties, the Senate Office of Oversight and Outcomes said Monday.”

Inman “Home Affordable Refinancing Program revamped to boost refis” (10-24-11)

“In an attempt to boost participation in the Obama administration’s  mortgage refinance program, Fannie Mae and Freddie Mac will release  lenders who sign off on a refinanced loan from some legal liabilities  associated with the original 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 170 podcasts in our free investor radio archive.

The Norris Group Real Estate News Roundup 7/28/11

Thursday, July 28th, 2011

Today’s News Synopsis:

The sales for existing homes increased 2.4% in June according to Bloomberg.  However, chief economist for Fannie Mae warned this does not necessarily mean a turn-around in the market.  In other news, despite a huge decrease in foreclosures in 84% of U.S. cities, there are still ten cities with high foreclosure rates and thus not indicating a positive turn in the market.

Housing Wire – “Vacant foreclosures in Ohio forming housing black hole (7-28-11)

“Every single vacant, foreclosed property in Ohio is proving to be a black hole that sucks down home prices, sits on the market for significantly longer, blights entire neighborhoods and boggles the mind through the sheer amount of REO volume.”

Bloomberg – “Existing Home Sales in U.S. Rose 2.4% in June” (7-28-11)

“The number of contracts to purchase previously owned U.S. homes unexpectedly rose in June as buyers tried to take advantage of lower prices and borrowing costs.  The 2.4 percent rise in the index of pending home resales followed an 8.2 percent May gain, the National Association of Realtors said today in Washington. Economists forecast a 2 percent drop, according to the median estimate in a Bloomberg News survey.

NAHB “Remodeling Activity Slows Under Economic Uncertainty” (7-28-11)

“The remodeling market slipped under pressure from a sluggish economy according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI), which dipped during the second quarter to 43.9 from the first quarter result of 46.5. An RMI below 50 indicates that more remodelers report market activity is lower compared to the prior quarter than report it is higher.”

DS News – “Increase in Pending Sales May Not Indicate Market Upswing” (7-28-11)

“The National Association of Realtors (NAR) released its Pending Home Sales Index Thursday, revealing an increase in pending home sales for the month of June,
marking the third of the last four months that the index has increased.”

Inman – “Trulia launches agent recommendation system” (7-28-11)

“Real estate search and marketing site Trulia today launched an agent recommendation system that incorporates endorsements from Facebook friends.”

Realty Times – “Chase, BofA Offer Modifications Without Homeowner Request” (7-28-11)

“JPMorgan Chase and Bank of America are reportedly modifying loans for borrowers who haven’t asked for help, in some cases slashing mortgage balances in half.  The two major banks were among others recently criticized for mishandling federally sanctioned mortgage modifications and slammed for botching foreclosures.”

NAHB – “Federal Proposal Could Raise Refinance Costs For Nearly 25 Million Homeowners” (7-28-11)

“Nearly 25 million homeowners across the country would face more expensive mortgages if a proposal by federal regulators goes unchanged. A proposal released by six federal agencies to implement credit risk retention provisions included in the Dodd–Frank Wall Street Reform and Consumer Protection Act would require homeowners to have at least 25 percent equity in their homes in order to qualify for a lower-rate “Qualified Residential Mortgage” (QRM) for refinancing.”

Mortgage Bankers Association – “MBA Statement on Debt Ceiling Negotiations” (7-28-11)

“‘The Mortgage Bankers Association is very concerned about the implications to the financial system of the United States if the U.S. defaults on its debt. The likely impact to the financial markets, interest rates, and to every family in America will be costly if the ceiling is not raised. We implore policymakers to act swiftly and find a workable solution, given the short time left, to take this step and not put the credit rating of the United States in jeopardy’.”

The Wall Street Journal – “UBS Is Sued for Mortgage Losses” (7-28-11)

“The federal regulator for Fannie Mae and Freddie Mac on Wednesday sued UBS AG, accusing the Swiss investment bank of costing the two mortgage giants at least $900 million by selling them shaky mortgage-backed securities during the housing market boom.”

Realtor Magazine – “Foreclosures Fall, But 10 Areas Still Hard-Hit” (7-28-11)

“During the first half of the year, foreclosures have dropped in more than 84 percent of U.S. metro areas, RealtyTrac reports. Is this a sign of a turnaround? Not quite, say analysts.”

Looking Back:

Commercial and multifamily mortgage origination increased by 35 percent in the second quarter of 2010. Mortgage application volume decreased 4.5 percent from the previous week, according to the MBA. Freddie Mac reports Americans took out $8.3 trillion in home equity during the second quarter of 2010. The number of foreclosure starts for 2010 was at 1.46m.

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

The Norris Group Real Estate News Roundup 7/18/11

Monday, July 18th, 2011

Today’s News Synopsis:

According to NAHB index, confidence for newly-built single-family homes increases two points.  DS News reported former Ohio attorney genereal has been nominated by Obama as the new head of the Consumer Financial Protection Bureau.  Republicans John Campbell and Gary Ackerman have introduced a new bill that will increase the loan limits on mortgages backed by Fannie Mae and Freddie Mac.

In The News:

NAHB – “Builder Confidence Gains Two Points in July” (7-18-11)

“Builder confidence in the market for newly built, single-family homes rose two points to 15 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for July, released today. The gain largely offsets a three-point dip recorded in June, and marks the ninth time out of the past 10 months in which the index has held within the same three-point range.”

Inman – “NAR hits second CIVIX milestone “ (7-18-11)

“The National Association of Realtors has met a second milestone in a goal of raising $7.5 million in licensing fees to obtain blanket immunity for multiple listing services and Realtor associations from legal claims by a company that holds several patents on location-based Internet search techniques.”

DS News“Obama Nominates Former Ohio Attorney General to Head CFPB” (7-18-11)

“President Obama on Sunday announced his pick to lead the new Consumer Financial Protection Bureau (CFPB) – Richard Cordray, former attorney general for the state of Ohio.”

Housing Wire “Freddie Mac says housing sector unlikely to see double-dip” (7-18-11)

“Despite uncertainty about the debt ceiling and an unemployment rate that remains stubbornly higher than 9%, Freddie Mac said the housing market is unlikely to experience a double dip.”

Realty Times“Real Estate Outlook: Housing Market Struggles” (7-18-11)

“While it might not be at the pace that economists would like, the economy is recovering. Federal Reserve Chairman, Ben Bernanke, reported last week to the Committee on Financial Services, that “the pace of the expansion so far this year has been modest.”

Bloomberg – “BofA Needs $50 Billion Cushion as Mortgage Expenses Swell” (7-18-11)

“Bank of America Corp. (BAC) may have to build its capital cushion by $50 billion and renege again on Chief Executive Officer Brian T. Moynihan’s pledge to raise the firm’s dividend as mortgage losses drain funds.”

Housing Wire “Freddie Mac offering $1 billion of multifamily bonds” (7-18-11)

“Freddie Mac plans to offer $1 billion of pass-through certificates this week backed by 90 recently originated multifamily mortgages.”

DS News – “Top Lenders’ Early Earnings Point to Continuing Mortgage Losses” (7-18-11)

“JPMorgan Chase kicked off the banking sector’s second-quarter earnings season with a $5.4 billion profit. It was followed by Citigroup’s announcement late last week that it pulled in net income of $3.3 billion during the April-June timeframe.”

Realtor Magazine – “Bill Calls for Extending Jumbo Loan Limits” (7-18-11)

“A bill introduced late last week calls for extending the current conforming loan limits on government-backed mortgages at Fannie Mae and Freddie Mac for another two years.  The bill, introduced by Rep. John Campbell, R-Calif., and Rep. Gary Ackerman, D-N.Y., would allow the government-sponsored enterprises and the Federal Housing Administration to guarantee or buy mortgages worth up to $729,750 in many neighborhoods.”

Bloomberg – “Builders Push ‘Green’ Homes to Stand Out in Foreclosure-Filled U.S. Market” (7-18-11)

“In the 20 years Ron Betenbough’s company has been building homes in west Texas, he’s always been willing to compete on price. Now, in a market crowded with cheap properties, he’s also touting environmentally friendly construction and energy-saving features.”

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

The Norris Group Real Estate News Roundup 6/14/10

Monday, June 14th, 2010

Today’s News Synopsis:

Christopher Cagan from First American predicts a dip in housing prices in the near future. A study from Harvard University seems to show that high unemployment is fueling the foreclosure crisis. Christopher Thornberg of Beacon Economics believes the recession is currently over, but he expects economic conditions to get worse over the next two years. REIS Inc predicts U.S. apartments may lead a rebound in commercial real estate.

In The News:

Orange County Register – “‘Double dip’ decline seen for housing” (6-13-10)

“In the short to near term, I expect a double dip.  This is the logical aftermath of the sugar shot from the Federal first time buyer tax credit.  It borrowed buyers from the future, and we are now going into that future.  Also we are not too far from the end of the traditional SoCal buying season.  I have already seen asking prices reduced 5% or so in May from April.”

Wall Street Journal“Trading Down: Can It Still Bankroll Your Retirement?” (6-13-10)

“Trading down to a smaller home is a retirement-planning staple. According to an April study by the Society of Actuaries, 20% of not-yet retirees say they plan to downsize after the last child leaves the nest.”

Los Angeles Times “Home shortages could develop as recovery unfolds” (6-13-10)

“A housing deficiency isn’t a sure thing, but the potential is certainly there, says David Crowe, chief economist at the National Assn. of Home Builders, who paints a rather ominous scenario in which house and apartment builders won’t be able to keep up with the demand. Wherever the new households come from — adult children moving out for the first time or leaving the nest a second or third time after returning to Mom and Dad’s to weather the economic storm, roommates uncoupling and going their separate ways or young couples starting families — most of them are typically renters. Therefore, the multifamily sector is apt to feel the pinch first, if only because it takes so much longer to build apartments than houses.”

Bloomberg “U.S. Housing Market Recovery Dependent on Jobs Growth, Harvard Report Says” (6-14-10)

“Job growth will be the key factor in whether the U.S. real estate market can extend a recovery after the end of the federal homebuyer tax credit, according to a Harvard University study. High unemployment is fueling the foreclosure crisis and discouraging the household formation that drives property demand, according to the State of the Nation’s Housing report issued today by Harvard’s Joint Center for Housing Studies.”

Housing Wire“Monday Morning Cup of Coffee” (6-14-10)

“The Federal Bureau of Investigation (FBI) is preparing a nationwide crackdown on mortgage fraud, with arrests expected to count in the hundreds, beginning as early as this week, the Financial Times reported.”

Housing Wire“Negative GDP Growth in Q3? Really?” (6-14-10)

“Thornberg essentially noted in his speech that while the recession is over, for now, we’re not there yet in terms of a sustainable economic recovery. He exhorted attendees to enjoy 2010, as he expects the year to be a relatively good one compared to what we may see in 2011 and 2012.”

Housing Wire“Subprime Mortgage Performance Improving as Delinquencies Drop” (6-14-10)

“The performance of historical subprime mortgages is improving according to two separate reports from Moody’s Investors Service and the Royal Bank of Scotland (RBS). And the rate of homeowners behind on their subprime mortgage is lower across all levels of days past due, albeit at different speeds.”

Housing Wire“Fiserv Sees Buyer ‘Optimism’ Behind Home Price Increases” (6-14-10)

“Home prices trended up in more than 40% of metropolitan areas (155 of 384 markets) in Q409, including markets in California, Ohio, Michigan and Washington DC, according to analysis of price trends by financial data services provider Fiserv. On average, home prices were down 2.5% in Q409 from the year-ago quarter, which Fiserv noted could be due to continued high unemployment levels, rising interest rates and a high volume of distressed property in markets like Florida, Arizona and Nevada. The data studied for the quarterly report is based on the Fiserv Case-Shiller Indexes.”

Bloomberg “Equity Residential May Start California Project Within a Year” (6-14-10)

“Equity Residential, the largest publicly traded U.S. apartment landlord, may start building a new development in California within the next year, Chief Executive Officer David Neithercut said. U.S. apartments may lead a rebound in commercial real estate as the economy adds jobs, property research firm Reis Inc. said in May. Vacancies probably will peak at 8.2 percent in 2010 and start to decline in 2011.”

Orange County Register“Portola Hills homes quickest to sell” (6-14-10)

“The ‘hardest’ O.C. town to find a home to buy in terms of ‘market time’ (supply of homes for sale vs. new purchase deals inked in past month) is Portola Hills at 1.3 months to theoretically sell all for-sale homes at the current buying pace. Or, looking at it another way: quickest to sell. A year ago, this town was at 0.6 months.”

Orange County Register“Home demand off 20% without tax break” (6-14-10)

“March and April’s surge due to the housing credit robbed May and June of normal activity. There is nothing cyclical about the recent swings in demand, but it is making its way back to normal. It should be back on track by July. Demand, the number of new pending sales over the prior month, decreased by 136 in the past two weeks and now totals 3,167. That is after a 603 home drop two weeks ago. For the first time since March 2008, demand is less than the prior year with 485 fewer pending sales.”

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.