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California Real Estate Headline Roundup

Posts Tagged ‘distressed’

The Norris Group Real Estate News Roundup 3/10/10

Wednesday, March 10th, 2010

Today’s News Synopsis:

The MBA reports that mortgage loan application volume increased by 0.5 percent. The percent of first-time buyers increased to 47 percent in 2009. FHFA is being sued over attempts to secure records of political contributions from Fannie Mae and Freddie Mac. John Burns claims that the real estate market is still in bad shape.

In The News:

Mortgage Bankers Association – “Purchase Applications Increase in Latest MBA Weekly Survey” (3-10-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 5, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 0.5 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 1.2 percent compared with the previous week.”

Mercury News – “San Jose council agrees to levy fee on affordable housing developers” (3-10-10)

“The San Jose City Council on Tuesday agreed to amend a city ordinance that for 22 years has given affordable housing developers a pass on paying to build parks. The city now will require those developers to pay 50 percent of the parkland fee that other developers pay. While preserving an incentive to build apartments for lower-income residents, the new agreement will provide the cash-strapped city more money to build or improve parks or trails near housing projects.”

CAR - “C.A.R. releases ‘State of the California Housing Market’ report” (3-10-10)

“Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) 2009-2010 ‘State of the California Housing Market’ report released today. The percent of first-time buyers increased dramatically in 2009, from 35.9 percent in 2008 to 47 percent in 2009, according to the report. The share of first-time buyers exceeded the long-run average of 38.6 percent and was the highest since 1995, when more than half of all buyers were first timers.”

Housing Wire – “Watchdog Sues FHFA Over Fannie and Freddie Records” (3-10-10)

“A watchdog group is fighting a legal battle with the Federal Housing Finance Agency (FHFA) over attempts to secure records of political contributions made by Fannie Mae (FNM: 1.10 +2.80%) and Freddie Mac (FRE: 1.31 +2.34%) since 2005. Judicial Watch filed its suit after the FHFA denied a May 29, 2009 Freedom of Information Act (FOIA) request, the group said in a press statement. According to the Judicial Watch, the FHFA claimed that while Fannie Mae and Freddie Mac might possess the requested documents, the FHFA was not obligated to release them under FOIA”

Housing Wire – “Housing Gets D+ in Latest John Burns Report Card” (3-10-10)

“The US Housing Market got a grade of D+ in the monthly John Burns Real Estate Consulting (JBREC) report card. The housing supply received a grade of F; steady from last month, albeit at very low levels, JBREC said. New home completions were down, but housing starts were up.”

Housing Wire – “Lend America, VP Ashley Banned from FHA” (3-10-10)

“Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week. The court judgment, issued in New York on March 3, brings to a close a nearly five-month-long ordeal that began in October when the Department of Housing and Urban Development’s (HUD) Mortgagee Review Board issued a notice of violation against Ideal Mortgage Bankers, parent company of Lend America and Lending Key.”

Bloomberg - “Apollo Said to Triple Property Assets With Citi Unit Purchase” (3-10-10)

“Apollo Management LP agreed to buy Citigroup Inc.’s real estate investment unit in a move that will more than triple the value of the private-equity firm’s property assets, a person with knowledge of the deal said yesterday. The purchase of Citi Property Investors will give New York- based Apollo 65 real estate investments in 26 countries with a net asset value of $3.5 billion, said the person, who asked not to be named because the negotiations are private. Apollo’s global head of real estate, Joseph Azrack, helped assemble the portfolio when he led the Citigroup unit from 2004 to 2008.”

Inman - “ZipRealty posts $2.1M Q4 loss” (3-10-10)

“ZipRealty Inc. boosted revenue by 14.6 percent in 2009, to $120.7 million, helping the company trim its annual loss to $12.9 million, down 3.4 percent from 2008. In the final three months of the year, the Emeryville, Calif.-based brokerage company handled 6,355 transactions, a 46.6 percent increase from the same period a year ago.”

Orange County Register - “24% of new South Coast homes: short sales” (3-10-10)

“There are 6,867 total pending sales in all of Orange County. Of those, 4,254 are short sales, 62%. Yet, only 27% of all closed residential resales in February were short sales. Most short sales are simply not closing. They are waiting on lender, or in many cases lenders, approval of the sale. Of the 4,254 pending short sales, only 757 have been pending for less than a month. 1,488 have been pending for over three months. The data does not even capture the short sales where a frustrated buyer walks away after waiting too long.”

Looking Back:

One year ago, homebuilder Hovnanian reported its 10th consecutive quarterly loss. JP Morgan feared that Obama’s mortgage-modification plan would require too many modifications to be made. Broker commissions decreased by 18 percent.

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The Norris Group Real Estate News Roundup 2/26/10

Friday, February 26th, 2010

Today’s News Synopsis:

According to the NAR, existing home sales decreased by 7.2 percent in January. The rise in GDP exceeded the median forecast of economists surveyed by Bloomberg. Freddie Mac reports the 30-year FRM increased to a rate of 5.05 percent. A recently proposed plan from the Obama administration would give homeowners an extra 30 days after receiving the HAMP non-approval notice before the foreclosure sale can proceed.

In The News:

NAR - “Existing-Home Sales Down in January but Higher than a Year Ago; Prices Steady” (2-26-10)

“Existing-home sales – including single-family, townhomes, condominiums and co-ops – dropped 7.2 percent to a seasonally adjusted annual rate1 of 5.05 million units in January from a revised 5.44 million in December, but remain 11.5 percent above the 4.53 million-unit level in January 2009.”

CNBC - “Housing Recovery Is Looking A Lot Shakier Than Expected” (2-26-10)

“Even the optimists never expected a traditional housing recovery with unemployment stubbornly high, the consumer balance sheet still in repair mode and credit conditions stingy, but right now there’s palpable worry about momentum—especially given a string of solid months in mid- to late-2009.”

Bloomberg - “U.S. Economy Grew at 5.9% Annual Pace Last Quarter” (2-26-10)

“The U.S. economy expanded at a 5.9 percent annual rate in the fourth quarter, more than the government reported last month, reflecting stronger business investment and a greater contribution from inventories. The rise in gross domestic product, which exceeded the median forecast of economists surveyed by Bloomberg News, marked the best performance in more than six years, the Commerce Department said today in Washington. Inventories added 3.88 percentage points to GDP, more than previously reported, and investment in software and equipment grew at the fastest pace in almost a decade.”

Inman - “30-year fixed punches through 5 percent” (2-26-10)

“Rates on 30-year fixed-rate mortgages broke through the 5 percent mark this week for the first time in three weeks, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey. The 30-year fixed-rate mortgage averaged 5.05 percent with an average 0.7 point for the week ending Feb. 25, up from 4.93 percent last week but down from 5.07 percent a year ago.”

Housing Wire – “As Commercial Real Estate Weakens, Moody’s Considers Action on Related CDOs” (2-26-10)

“The credit rating agency Moody’s Investors Service put a total of $6.2bn of commercial real estate linked CDOs up for possible downgrade today, citing growing concerns over the ability of the underlying assets to continually perform.”

Housing Wire – “BB&T Originations Nearly Doubled in 2009″ (2-26-10)

“BB&T Corp. (BBT: 28.53 +1.06%) said it originated 72,500 mortgages through its retail operation, including 53,500 refinance loans and 19,000 purchase mortgages, a 97% increase from 2008’s origination level. In addition, BB&T said it closed 6,600 loans worth nearly $1.3bn Homeowners Affordability and Stability Plan, as known as the Making Home Affordable program, to help stave foreclosure for distressed borrowers.”

Housing Wire – “Homeowner Estimates as Good as Zillow? Appraisal Academics Think So” (2-26-10)

“When it comes to using the Zillow.com automated valuation model (AVM) to get a free listing price on a house, users may be getting what they paid for, according to a report published by the Appraisal Institute that finds the Web site overestimates the values on homes almost as often as the actual homeowners.”

Housing Wire – “Obama Aims to Prohibit Foreclosure to Give HAMP a Chance” (2-26-10)

“The Obama Administration is drafting a proposal that would prohibit foreclosure on delinquent mortgages until servicers get a chance to evaluate a borrower for the Home Affordable Modification Program (HAMP). According to the presentation to lenders obtained by HousingWire, the Administration would also give borrowers an extra 30 days after receiving the HAMP non-approval notice before the foreclosure sale can proceed.”

Housing Wire – “Republicans Say Government-Led Mortgage Modifications are a Failure” (2-26-10)

“The US Treasury Department launched HAMP in March 2009 to allocate capped incentives to servicers for the modification of loans on the verge of foreclosure. The $75bn program aims to modify 3-to-4m mortgages by the time it expires in 2012. Through January, participating servicers provided 116,000 permanent modifications, an increase from 66,000 in December. In November 2009, the Treasury initially estimated 375,000 permanent modifications by the end of the year.”

Realty Times – “Top Affordable U.S. Housing Markets” (2-26-10)

“The HOI [Housing Opportunity Index] showed that 70.8 percent of all new and existing homes sold in the final quarter of 2009 were affordable to families earning the national median income of $64,000, slightly higher than the previous quarter and near the record-high 72.5 percent set during the first quarter of 2009, according to a press statement from the National Association of Home Builders.”

Realty Times – “Commercial Real Estate Losses Could Reach $1 Trillion” (2-26-10)

“We estimate that between $800 billion and $1 trillion of losses to commercial real estate equity and debt will be realized over the next few years. The annual volume of commercial mortgage maturities is expected to increase each year through 2013, according to Ken Rosen, during the Commission’s first hearing on January 15, 2010.”

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The Norris Group Real Estate News Roundup 2/22/10

Monday, February 22nd, 2010

Today’s News Synopsis:

Moody’s reports that commercial property prices increased by 4.1 percent in December. A survey shows that 87 percent of homebuilders expect to lose money due to the new FHA guidelines. According to Campbell Surveys, short sales accounted for 15.9% of home purchases in January. Janet Yellen predicts that the U.S. economy will perform below potential throughout this year and the next.

In The News:

Los Angeles Times – “IRS issues new guidelines on obtaining home buyer tax credits” (2-21-10)

“Despite blizzards that shut federal offices for days, the Internal Revenue Service issued new guidance Feb. 12 on the two tax credit programs that are powering the country’s real estate markets — the $6,500 credit for repeat buyers and the $8,000 first-time buyer credit. The new IRS policy clarified documentation that taxpayers need to submit to successfully obtain either credit. When Congress revised the credit programs in November, it ordered the IRS to tighten its rules and monitoring to curtail widespread frauds that had emerged earlier in 2009.”

Sacramento Bee – “Schwarzenegger proclaims `the worst is over’ for California” (2-21-10)

“Despite the state’s high unemployment rate, California’s economy is making a slow comeback and ‘the worst is over,’ Gov. Arnold Schwarzenegger said today.”

Housing Wire – “Commercial Real Estate Prices Up as Foreclosures Threaten Recovery” (2-22-10)

“US commercial real estate prices as measured by Moody’s Investors Service/Real Estate Analytics, Commercial Property Price Indices (CPPI) increased for the second month in a row in December, rising 4.1%, as the commercial real estate (CRE) market continues to face several challenges, such as the rising tide of defaults and subsequent foreclosures.”

Housing Wire – “Homebuilders Expect FHA Changes to Hurt Sales” (2-22-10)

“However, 87% of builders surveyed said they expect to lose sales due to new FHA guidelines. Half of the builders surveyed expect to lose 10% or more of sales. As HousingWire reported in January, the FHA raised insurance fees and down payments for borrowers with lower credit scores to address the FHA’s capital reserve ratio, which fell below the Congressionally mandated 2% threshold. Borrowers with a FICO score of less than 580 are now required to make a 10% down payment, up from the previous 3.5% down payment. In addition, seller concessions have been cut in half to 3%, from 6% and mortgage insurance fee at closing increased from 175 bps to 226 bps.”

Housing Wire – “Governors See Bad Economic Times Getting Worse for States” (2-22-10)

“General fund spending among the states dropped 3.4% in 2009 and 5.4% in 2010, based on enacted budgets. The only other annual decline in state spending occurred in 1983, when it dropped 0.7%.”

Housing Wire – “Survey Finds Short Sales Outnumber REO in January Purchases” (2-22-10)

“Short sales accounted for 15.9% of home purchases in January, surpassing the share of other distressed property activity, when real estate owned (REO) properties are measured separately, according to a monthly Campbell/Inside Mortgage Finance (IMF) survey of more than 1,500 real estate agents, conducted by Campbell Surveys.”

Bloomberg - “Yellen Says U.S. Economy Will Perform Below Potential” (2-22-10)

“Federal Reserve Bank of San Francisco President Janet Yellen said the U.S. economy will operate below potential this year and next and still needs low interest rates to gain strength. “

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The Norris Group Real Estate News Roundup 2/12/10

Friday, February 12th, 2010

Today’s News Synopsis:

California Senator Roy Ashburn has proposed new legislation to extend the home buying tax credit. According to CAR, 64 percent of households can afford to buy an entry-level home in California. The Federal Reserve reports that the total U.S. equity increased by nearly $1 trillion from the recession’s nadir in the first quarter of 2009. Statistics from NAR show that existing home sales increased by 13.9% in Q4 of 2009.

In The News:

Recordnet.com – “More tax credits may be on the horizon” (2-12-10)

“A second round of tax credits may become available to 20,000 California home buyers before summer arrives. State Sen. Roy Ashburn, R-Bakersfield, has introduced legislation that would provide $200 million worth of $10,000 tax credits to buyers of both new and resale homes.”

CAR - “Fourth quarter housing affordability” (2-12-10)

“The percentage of households that could afford to buy an entry-level home in California remained at 64 percent in the fourth quarter of 2009, compared with 61 percent (revised) for the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).”

Los Angeles Times – “30-year fixed mortgages dip below 5% again” (2-12-10)

“Average interest rates for traditional 30-year fixed mortgages have fallen below 5% again, Freddie Mac said Thursday. The giant mortgage buyer’s weekly survey, conducted Monday through Wednesday, pegs the average rate nationally at 4.97%, with 0.7% of the loan balance on average paid in upfront charges, or points.”

Washington Post – “Good real estate news: Home equity is rising again” (2-12-10)

“According to the Fed’s most recent “flow of funds” survey, homeowners’ net equity grew by nearly $1 trillion from the recession’s nadir in the first quarter of 2009 through the third quarter. From June 30 to Sept. 30, net equity rose by $418 billion.”

Housing Wire – “Existing Sales Volume Narrows Home Price Declines” (2-12-10)

“Existing-home sales, including single-family and condo, jumped 13.9% to a seasonally adjusted annual rate of 6.03m in the Q409 from 5.29m in the Q309, and are 27.2% above the 4.74m-unit level in the Q408, NAR reported, adding distressed properties accounted for 32% of Q409 transactions, down from 37% a year ago. The improvement comes after sales plummeted in December to close out the year.”

Housing Wire – “Citi Pilots New Foreclosure Alternative Across 6 States” (2-12-10)

“CitiMortgage, the servicing arm of Citigroup (C: 3.18 -0.93%), will pilot a new Foreclosure Alternatives Program that allows distressed borrowers to stay in their homes an additional six months in exchange for the deed.”

Housing Wire – “Commercial Real Estate Woes Will Cost Banks $300bn: COP” (2-12-10)

“Financial institutions could face $300bn in losses related to commercial real estate in 2011 and beyond, putting smaller banks at the most risk, according to a report from the Congressional Oversight Panel (COP). Congress established COP in October 2008 to oversee the spending of the $700bn from the Troubled Asset Relief Program (TARP). Between 2010 and 2014, the Panel found that $1.4trn in commercial real estate will mature, and almost half are currently underwater.”

Bloomberg - “AIG Decides to Keep Unprofitable Mortgage Insurer” (2-12-10)

“American International Group Inc., the insurer divesting assets to repay a government bailout, opted to keep its money-losing U.S. mortgage guarantor after selling Canadian and Israeli subsidiaries of the unit.”

Bloomberg - “Fannie, Freddie Spreads Narrowest in 17 Years: Credit Markets” (2-12-10)

“Traders are driving relative yields on Fannie Mae and Freddie Mac mortgage bonds that most influence the interest rates consumers pay to the lowest in 17 years, speculating cash the companies use to buy delinquent loans will be recycled back into the securities. The difference between yields on Fannie Mae’s current- coupon 30-year securities, which trade closest to face value, and 10-year Treasuries narrowed 0.01 percentage point today to 0.66 percentage point as of 11:10 a.m. in New York, matching the lowest since 1992, according to data compiled by Bloomberg.”

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The Norris Group Real Estate News Roundup 2/8/10

Monday, February 8th, 2010

Today’s News Synopsis:

The U.S. Treasury Department reported 66,465 permanent loan modifications over 8 months. Delinquencies on prime jumbo loans increased to 10 percent in January. According to Altera Real Estate, distressed property sales increased in Dana Point and Laguna Beach. Unemployment in the U.S. construction industry increased to 24.7 percent in January.

In The News:

California Builder – “2010 Economic Forecast: The Bear Turns Bullish” (2-8-10)

“In April of 2009, we reversed our tune and called for a ‘W,’ which would be an improvement in the market until the tax credit expired. However, with the federal tax credit extended through June for all buyers, and affordability far better than we imagined at the time, the risk of a second leg down has been significantly reduced.”

Housing Wire – “House Committee Investigates HAMP ‘Effectiveness’” (2-8-10)

“The US Treasury Department launched HAMP in March 2009 to allocate capped incentives to borrowers for the modification of loans on the verge of foreclosure. After eight months in the program, the Treasury reported 66,465 permanent loan modifications in December, up from 31,382 permanent modifications in November.”

Housing Wire – “Fitch Says Prime Jumbo RMBS Near 10% Delinquent” (2-8-10)

“The performance of US prime jumbo loan performance within residential mortgage-backed securities (RMBS) slipped again in January as serious delinquencies (60+ days past due) rose for the 32nd consecutive month and edged closer to 10%, according to the latest market commentary from Fitch Ratings.”

Housing Wire – “Monday Morning Cup of Coffee” (2-8-10)

“The editorial argues the $111bn in mortgage losses covered by the Treasury Department was justifiable as an emergency measure to keep the housing market from collapsing entirely. But with continued losses projected in 2011 and 2012, covering the GSEs in perpetuity would cost more than $1.6trn, on top of the national debt of $12.3trn.”

Housing Wire – “BofA Lends $758bn in 2009″ (2-8-10)

“Bank of America (BAC: 14.48 -3.47%) said it extended more than $758bn in credit in 2009, including nearly $180bn in Q409. BofA originated $87bn in first mortgages to fund purchase or refinance loans for more than 400,000 borrowers in Q409. That total includes $23bn in mortgages made to 151,000 low- and moderate-income borrowers. For the year, BofA originated $378bn in first mortgages for more than 1.7m customers, including $87bn in mortgages to more than 561,000 low- and moderate-income borrowers. In Q409, BofA originated $3bn in home equity and reverse mortgage loans, bringing the total for 2009 to $13bn.”

Orange County Register – “South coast: short sales, foreclosures up” (2-8-10)

“Most of our south coast cities went against the grain and reflected the opposite of the countywide trend by seeing an increase in distressed properties for sale. Two weeks ago, Dana Point’s percentage of short sales and foreclosures was 24.7%, which has risen just slightly to 24.8%, according to a biweekly report by Steven Thomas of Altera Real Estate. Laguna Beach also saw a slight increase in distressed properties. The percentage of short sales and foreclosures rose from 9% two weeks ago to 9.3%.”

Orange County Register – “1-in-4 U.S. construction workers jobless” (2-8-10)

“The U.S. construction industry’s unemployment rate hit 24.7% in January as another 75,000 American construction workers lost their jobs.”

Realty Times – “Developing Referral Relationships” (2-8-10)

“The primary objective of your first contact, like the objective of any other first sales call to a new prospect, is to book an appointment. The first appointment might take the form of an exploratory session aimed at determining the wants, needs, and desires of the lead, or it might be an appointment to conduct a buyer consultation or listing presentation. The secondary objective of your first contact is to open the door, establish trust and respect, demonstrate your knowledge, and establish your position as a reliable resource.”

Looking Back:

One year ago, the MBA ranked Wachovia as the leading national commercial and multifamily loan servicer. Geithner promised that lenders receiving financial rescue would be required to offer mortgage modifications. A total of 70 banks were shut down within the first month of 2009.

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The Norris Group Real Estate News Roundup 1/22/10

Friday, January 22nd, 2010

Today’s News Synopsis:

According to DataQuick, 41,837 new and resale houses and condos were sold statewide in December. New York’s Federal Reserve bought $12 billion of MBS from Fannie Mae and Freddie Mac. First American CoreLogic reports that national home prices decreased by 5.7% from November 2008 to November 2009. A proposal from President Barack Obama to limit bets made by banks with their own capital may encourage banks to sell some private-equity businesses and to stop investing in buyouts.

In The News:

DQNews - “California December Home Sales” (1-21-10)

“An estimated 41,837 new and resale houses and condos were sold statewide last month. That was up 16.7 percent from 35,860 in November, and up 10.6 percent from 37,836 for December 2008. An increase in sales from November to December is normal for the season. California sales for the month of December have varied from a low of 25,585 in 2007 to a peak of 65,793 in 2004, the average is 44,708. MDA DataQuick’s statistics go back to 1988.”

Housing Wire – “Fed Buys Another $12bn of Agency MBS” (1-22-10)

“The Federal Reserve Bank of New York bought $12bn of mortgage-backed securities (MBS) from mortgage giants Freddie Mac (FRE: 1.17 -10.69%), Fannie Mae (FNM: 0.99 -7.48%) and Ginnie Mae in the week ending January 20. Gross purchases totaled $16.36bn — $1.3bn of Freddie MBS and $12.8bn of Fannie MBS — before $2.25bn of MBS sales during the same time frame, according to details released Thursday by the NY Fed.”

Housing Wire – “First American Home Price Index Down 5.7%” (1-22-10)

“National home prices declined 5.7% year-over-year in November, according to First American CoreLogic’s LoanPerformance Home Price Index (HPI). That’s an improvement from October’s year-over-year decline of 7.6%, but prices also declined 0.2% in November compared to October. Excluding distressed sales, prices declined 5.1% year-over-year in November, compared to a 5.7% decline in non-distressed sales prices in October.”

Housing Wire – “FHA Opens HAMP for Borrowers at Default’s Door” (1-22-10)

“The Federal Housing Administration will provide early loss mitigation assistance for borrowers before they fall behind on their mortgage payments. According to the Helping Families Save Their Home Act of 2009, the FHA has the authority to use loss mitigation tools for delinquent borrowers facing ‘imminent default.’”

Housing Wire – “Frank Says Committee to Recommend ‘Abolishing’ Fannie, Freddie” (1-22-10)

“House Financial Services Committee Chairman Barney Frank (D-Mass.) called for the abolition of the government-sponsored enterprises (GSEs) Fannie Mae (FNM: 0.99 -7.48%) and Freddie Mac (FRE: 1.17 -10.69%) during a committee hearing Friday.”

Housing Wire – “SunTrust Boosts Reserve for Mortgage Repurchases, Posts Q409 Loss” (1-22-10)

“SunTrust Banks (STI: 24.55 +0.08%) posted a net loss of $316.4mfor the fourth quarter of 2009, and a full-year net loss of $1.73bn, compared with $741m of net income in the previous year. Loss expectations in the mortgage unit drove the results, as the company bolsters its reserve for expected mortgage loan repurchases.”

Bloomberg - “Obama Proposal May Force Banks to Sell Buyout Units” (1-22-10)

“JPMorgan Chase & Co. and Goldman Sachs Group Inc. may have to sell some private-equity businesses and stop investing in buyouts under a proposal by President Barack Obama to limit bets made by banks with their own capital. Obama asked Congress yesterday to prohibit banks from owning or making investments in private-equity and hedge funds that ‘are unrelated to serving customers.’ While financial institutions could still manage the assets on behalf of clients, they wouldn’t be able to invest in their own funds or those run by firms such as Blackstone Group LP and KKR & Co.”

Inman - “2010: a time of stabilization” (1-22-10)

“Pat Lashinsky, CEO and president of national real estate brokerage company ZipRealty, said he expects some stabilization and ‘a little bit of rebounding’ in the housing market compared to last year.”

Inman - “Mortgage fraud reports level off” (1-22-10)

“After six years of double-digit growth, reports of suspected cases of mortgage fraud by lenders leveled off in the first half of 2009 but remained at a historically high level, acccording to a government report released today. The Financial Crimes Enforcement Network (FinCEN) said depository institutions reported 32,926 cases of suspected mortgage fraud in the first half of 2009, an increase of less than 1 percent from the same period in 2008.”

Looking Back:

One year ago, DQNews reported that 37,836 new and resale houses and condos were sold statewide during December 2008. The MBA’s weekly survey showed that mortgage application volume had decreased by 17.6 percent from November to January. The Commerce Department reported that home and apartment construction decreased by 15.5 percent in December 2008.

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The Norris Group Real Estate News Roundup 12/29/09

Tuesday, December 29th, 2009

Today’s News Synopsis:

The S&P/Case-Schiller index shows that home prices increased in 20 major U.S. cities in October. A Bloomberg study shows that broker commissions decreased by 6.2 percent from last year. Steve Thomas of Altera Real Estate reports that Orange County home sales take half as much time in comparison to last year. O.C. distressed property sales decreased by 53 percent from last year.

In The News:

Bloomberg - “Home Prices in 20 U.S. Cities Rose for Fifth Month” (12-29-09)

“Home prices in 20 U.S. cities rose in October for a fifth consecutive month, putting the housing market and economy farther along the path to recovery. The S&P/Case-Shiller home-price index increased 0.4 percent from the prior month on a seasonally adjusted basis, after a 0.2 percent rise in September, the group said today in New York. The gauge was down 7.3 percent from October 2008, the smallest year- over-year decline since October 2007. The median forecast of economists surveyed by Bloomberg News anticipated a 7.2 percent drop.”

Bloomberg - “Housing Recovery Fails to Bolster Broker Commissions” (12-29-09)

“A surge in home purchases by first- time U.S. buyers is doing little to help real estate agents and brokers who close the deals. Commissions in 2009 fell to the lowest level in seven years, driven down by sales of low-priced homes to first-time buyers using the federal tax credit. Commissions through November dropped 6.2 percent from a year earlier to $40.6 billion, according to Bloomberg calculations based on the average commission rates from Real Trends Inc. and on home price and sales data from the National Association of Realtors.”

Inman - “Approach 2010 with curiosity, not dread” (12-29-09)

“Given the immense global economic expansion under way and the shortage of the commodity, its price ought to go up. Then again, given cost of production at $600 an ounce and doubled price, nobody knows at what point balance will appear. If you want an inflation indicator, watch inflation. Currency values are relative to each other, not absolute, and are effect, not cause. In the old days you could assume that a weak currency brought inflation, or that you got some benefit from having a strong currency. Today, China has no inflation problem and tries like hell to keep its currency cheap. Watch economies themselves.”

Inman - “3 steps to a better marketing strategy” (12-29-09)

“Cummings points out that more wealth is created during recessions than at any other time. Recessions do end. While you can’t control when your market will shift, you can control your reaction to the market.”

Realty Times – “Washington Report: Estate Taxes” (12-29-09)

“If the Senate fails to pass a bill preserving current estate tax rates, as the House did before heading home for the holidays, the estate tax will totally disappear January first. While that might sound like outstandingly good news for people who want to pass along real estate to children or grandchildren tax-free, there’s a major complication here. If the estate tax disappears in 2010 because the Senate couldn’t get its act together in 2009, the disappearance will only be temporary, for one year. Then, under a legislative deal worked out nearly a decade ago, the estate tax will suddenly spring back to life in 2011 with higher tax rates and lower exclusions.”

Orange County Register – “Home-selling time sliced by half in 2009″ (12-29-09)

“The latest O.C. home inventory report from Steve Thomas at Altera Real Estate in Aliso Viejo — the last one for 2009 — tells you that the typical home officially on the market today takes half the time to sell than it did a year ago!”

Orange County Register - “Distressed homes for sale cut 53% in a year” (12-29-09)

“the number of O.C. distressed properties (homes listed by agents in the MLS system as foreclosures or short sales) was 2,537 last week — down 53% in a year.”

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The Norris Group Real Estate News Roundup 9/30/09

Wednesday, September 30th, 2009

Today’s News Synopsis:

Experian and Wyman estimate that the number of strategic defaults in 2008 were up to 600,000. Senators are supporting new legislation that would lend 200 million dollars for the prosecution of mortgage and real estate fraud cases.  The MBA reports that the mortgage loan application volume decreased by 2.8 percent on a seasonally adjusted basis. The $8,000 dollar tax credit is soon to expire while approximately 1.8 million people are expected to receive the credit. Freddie Mac announced that it will work with Titanium Solutions to do door-to-door loan modifications.

In the News:

Appraisal Institute – “Appraisal Institute Urges Practicing Fundamentals, Hiring Qualified Appraisers, Enforcing Regulatory Oversight” (9-30-09)

“At a residential real estate roundtable hosted by the National Association of Home Builders, representatives of the Appraisal Institute urged the mortgage and housing industries to hire qualified appraisers and encouraged government regulators to redouble efforts on enforcement. Appraisal Institute President Jim Amorin, President-Elect Leslie Sellers and Bill Garber, director of government and external relations, participated on the panel last week with industry and government officials.”

DSNews - “Who Walks Out? New Studies Shed Light on Strategic Defaults” (9-29-09)

“According to Experian and Wyman, numbers of strategic defaults are far greater than you might expect. Nearly 600,000 borrowers nationwide fell into this category in 2008, more than double the number in the previous year. That number also represents 18 percent of all serious delinquencies from last year.”

Arizona Republic – “Kyl bill targets real-estate fraud” (9-30-09)

“New national legislation calls for setting up a $200 million fund to help states prosecute mortgage and real-estate fraud cases. Sen. Jon Kyl, R-Ariz., is teaming with Sen. Charles Schumer, D-N.Y., to back the Fighting Real Estate Fraud Act of 2009, which would set up a grant program that local prosecutors, state attorneys general and Native American tribes could apply for to fund investigations.”

Washington Post – “Lack of Equity Slows Federal Aid Program” (9-30-09)

“A federal program to allow borrowers with little or no equity in their homes to refinance is struggling to gain traction, according to government data released Tuesday, showing that only 93,070 borrowers have been helped since the effort was launched in April. The program has encountered difficulties that government regulators had not expected, such as the limited capacity of lenders to carry it out and the large proportion of borrowers who could not initially qualify because their home values had fallen so sharply.”

The Raw Story – “US secretly tried to make deal with Goldman Sachs in wake of financial crisis” (9-30-09)

“The government secretly tried to orchestrate a deal involving Goldman Sachs in the week following Lehman Brothers’ collapse and considered using the Federal Reserve to help support such a transaction, Andrew Ross Sorkin reports in the new issue of Vanity Fair.”

Seeking Alpha – “Mortgage Delinquencies Rising” (9-30-09)

“All types of delinquencies were up, but most distressing was the information about serious delinquencies, or mortgages that are more than 60 days past due. They reached 5.3% of all mortgages, up from 4.7% in the first quarter, an increase of 11.5%. Foreclosures-in-process reached 2.9% of all mortgages, up from 2.4% in the first quarter — a 16.2% increase.”

Real Estate Channel – “FHFA Refinance Report Underscores Impact of Interest Rates on Refinance Volumes” (9-30-09)

“Fannie Mae and Freddie Mac refinanced more than 3.2 million mortgage loans in 2009 through August of this year. In the month of August alone, nearly 360,000 mortgages were refinanced. The numbers were announced today by Edward J. DeMarco, Acting Director of the Federal Housing Finance Agency (FHFA), in its monthly report on Enterprises’ refinance volumes and the Administration’s Making Home Affordable Refinance Program (HARP).”

New York Times – “CIT Plans for Exchange Offer and Potential Bankrucpty” (9-30-09)

“The CIT Group, nearing a Thursday deadline to present a comprehensive restructuring scheme, is planning to roll out a massive debt exchange offer to its bondholders, along with votes for a potential prepackaged bankruptcy, people with direct knowledge of the talks told DealBook on Wednesday. CIT, a major lender to the nation’s small and mid-sized businesses, plans to ask bondholders to exchange their current holdings for new debt and equity, these people said. The offer would be introduced within days and would run for about 20 business days.”

Philly.com – “Government tweaks mortgage-change efforts” (9-30-09)

“Speaking today at the Philadelphia Federal Reserve Bank, Treasury Department senior policy analyst Mark McArdle said changes were in place or become effective next week to better monitor performance of the 62 servicers involved in the Home Affordable Modification Program (HAMP), which has a Nov. 1 target of 500,000 ‘trial’ modifications, designed to test whether borrowers can handle easier terms on their home loans.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (9-30-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September 25, 2009. The Market Composite Index, a measure of mortgage loan application volume, decreased 2.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3.1 percent compared with the previous week and increased 44.3 percent compared with the same week one year earlier. ”

Mortgage Bankers Association – “Commercial/Multifamily Market Feels Impact of Continued Economic Pressures” (9-30-09)

“The Mortgage Bankers Association (MBA) today released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for the Second quarter of 2009. The analysis focuses on how the continued economic downturn in the United States placed further pressure on the commercial and multifamily real estate markets during the second quarter. While the second quarter likely marks the recession’s end, it also marks a very low point in terms of jobs, consumer spending, industrial production and other drivers of commercial real estate demand. As a result, various areas of the commercial/multifamily real estate market have been impacted including originations, mortgage debt outstanding and mortgage performance. ”

San Francisco Chronicle – “First-time home buyer tax credit set to expire” (9-30-09)

“The $8,000 federal tax credit for first-time home buyers is soon to expire, causing anxious house hunters to hustle and prompting a debate in Congress over extending a program that some say is central to the fragile real estate recovery. Critics argue that American taxpayers are simply footing a windfall for purchasers who would have bought homes anyway. Real estate industry statistics suggest that approximately 1.8 million people are expected to receive the credit. They also indicate that the rebate spurred 350,000 home sales.”

Inman - “Freddie doing loan mods door-to-door” (9-30-09)

“Freddie Mac on Tuesday announced it’s going even farther, hiring a company to go door-to-door to meet with delinquent borrowers in their homes to collect missing information and documents needed to begin three-month trial loan modifications under the Obama administration’s Making Home Affordable Program.”

Inman - “Lenders more generous with loan mods” (9-30-09)

“More than three out of four loan modifications made by lenders during the second quarter reduced borrowers’ monthly payments, up from 54 percent in the first three months of the year, according to a report released today by federal bank regulators.”

Orange County Register – “O.C. house building down 85% in a decade” (9-30-09)

“Just one California metro area did better percentage wise than O.C.: The Vallejo-Fairfield area saw single-family home building permits rise 36% as of August, the only California metro with an increase.”

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