Today’s News Synopsis:
The number of bank closures is now up to 16 with the recent closure of a bank in Michigan. Hope Now reported a 20% decrease in private mortgage modifications last month. JP Morgan is facing a lawsuit from Ambac for mishandled loans.
In The News:
Housing Wire – “Ambac sues JPMorgan over $200 million in RMBS claims” (4-2-12)
“Bond insurer Ambac Financial filed its second mortgage bond suit against Bear, Stearns & Co. and EMC Mortgage, which are now part of JPMorgan Chase ($46.15 0.17%). All three entities are accused of packaging, underwriting and selling poorly underwritten loans for securitization, leaving Ambac on the hook for insuring the losses.”
DS News – “Michigan Bank Closes, Raising Tally to 16” (4-2-12)
“State regulators closed Fidelity Bank of Dearborn, Michigan over the weekend, the first bank in Michigan to fail and the 16th in the nation to go dark.”
Realty Times – “Real Estate Outlook: Labor Market Improvements” (4-2-12)
“The health and recovery of the real estate market is closely related to the health of the labor market. This much has been seen since the beginning of the recession and continues today.”
Housing Wire – “Fitch: Recent Redwood RMBS deals solid” (4-2-12)
“Only one borrower out of 1,800 newly originated prime loans backing Fitch-rated U.S. residential mortgage-backed securities is delinquent, the ratings giant said.”
Bloomberg – “Biggest Bond Traders See Worst Over for Treasuries” (4-2-12)
“The worst is over for the $10 trillion U.S. Treasury market following the biggest quarterly rout since 2010, say Wall Street’s largest bond trading firms.“
Housing Wire – “Private mortgage modifications drop 20% in February” (4-2-12)
“Mortgage servicers completed 20% fewer modifications through private programs in February than the month before, according to the Hope Now alliance.”
Realty Times – “Home Builders Offer Housing Finance Reform” (4-2-12)
“The National Association of Home Builders (NAHB) isn’t waiting for politicos in Washington D.C. to revamp the federal government’s housing finance system.”
DS News– “J.P. Morgan Announces Sale of Securities Backed by NPL” (4-2-12)
“J.P. Morgan recently announced the issuance of $132 million in commercial mortgage-backed securities (CMBS) backed by non-performing commercial real estate loans.”
CNN Money – “‘Hidden spending’ makes government bigger” (4-2-12)
“Which costs the federal government more: a $2,100 check from Uncle Sam or a tax break worth $2,100? The answer is they cost the same.”
Housing Wire – “Principal write-downs looming, KBW downplays moral hazard” (4-2-12)
“Principal write-downs on Fannie Mae and Freddie Mac loans are more likely to become a reality and are less of a moral hazard than some might imagine, according to analysts with investment bank Keefe, Bruyette & Woods($18.13 -0.37%).”
“The home building industry celebrates New Homes Month in April by sharing the hottest design trends that will be seen in new homes in 2012. New home buyers will be able to take advantage of emerging market trends that incorporate creative use of materials, layouts and features that provide maximum utility and beauty while being cost-conscious at the same time.”
Housing Wire – “Residential construction flat in February” (4-2-12)
“Residential construction spending changed little in February from January but rose 4.6% from February 2011. The seasonally adjusted annual rate, as reported by the Census Bureau, fell $4 million in February to $253.5 billion. The Commerce Department revised the January rate downward to $253.5 billion from $260.6 billion”
Hard Money Loan Closed
Riverside, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $105,000 on a 3 bedroom, 2 bathroom home appraised for $166,000.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at The Women’s Council of Realtors Victorville on Wednesday, April 11, 2012.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at All In or Fold on Saturday, April 28, 2012.
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.