Today’s News Synopsis:
Bloomberg believes the housing market is recoving at a slower pace due to tighter restrictions and higher standards set by the government. On a positive note, Inman reported an increase of 6.7% in rental prices, and Realty Times reported mortgage rates have remained the same and housing prices have shown a slight increase. In other news, the Republicans are introducing a bill to merge Fannie Mae and Freddie Mac into one corporation.
In The News:
Bloomberg - “Housing Recovery Stymied by Government” (7-6-11)
“Sue Stamper, a business owner in Sacramento, California, wants to buy a home. After mortgage- financiers Fannie Mae and Freddie Mac imposed the strictest loan standards in more than a decade, she doesn’t qualify.”
Los Angeles Times - “Treasury’s holdings of mortgage-backed securities drop below $100 billion as sell-off continues” (7-6-11)
“The Treasury Department said Wedneday it had recovered about 65% of the $225 billion it spent to purchase mortgage-backed securities to help stabilize the housing market during the financial crisis as the government continues to slowly sell off its holdings.”
Inman - “National rental prices climb in June” (7-6-11)
“Rental listing prices nationwide rose 6.7 percent year-over-year in June, according to a report from real estate search site HotPads. ”
DS News - “Washington Mutual Reaches $208.5 Million Settlement” (7-6-11)
“Washington Mutual Inc.‘s former executives, underwriters, and auditor reached a $208.5 million settlement in a class-action lawsuit by investors.”
The Wall Street Journal - “Bill Calls for Fannie, Freddie Merger” (7-6-11)
“A California Republican is set to introduce a bill as soon as Wednesday to merge Fannie Mae and Freddie Mac and restructure the company into a government-held corporation.”
Housing Wire - “Obama administration pressures banks to reduce mortgage principal” (7-6-11)
“The Obama administration is putting more pressure on banks to help underwater borrowers by reducing the principal on current home loans.”
Realty Times - “Mortgage Rates Remain Steady as Home Prices Improve” (7-6-11)
“Over the past week, sparks of good news indicating a step in the right direction for the economic recovery kept mortgage rates steady and still at their lowest for 2011. For the first time in eight months, U.S. home prices showed a slight increase as reported by Case Shiller Home Price Indices.”
Inman - “Lenders warned not to discriminate against women on maternity leave” (7-6-11)
“A report in the New York Times that suggested mortgage lenders had discriminated against women taking maternity leave has resulted in a settlement with Houston-based Cornerstone Mortgage Co. and charges against mortgage insurer Mortgage Guaranty Insurance Corp. (MGIC) for alleged violations of the Fair Housing Act.”
The Wall Street Journal - “Sellers Brace for New Mortgage Caps” (7-6-11)
“The federal government is readying its first retreat from the mortgage market, with the size of loans eligible for government backing set to decline in October.”
Housing Wire – “Treasury to reward servicers for quicker mortgage modifications” (7-6-11)
“The Treasury Department will pay mortgage servicers more for modifying loans in an earlier stage of delinquency and less the longer the process takes, according to guidance released Wednesday.”
Looking Back:
One year ago, Lender Processing Services reported the national mortgage delinquency rate increased to 9.2% in May 2010. Reis reported national office vacancies increased by 0.1 percent in the second quarter of 2010 to 17.4 percent. The former CEO of Irvine Co. believed the housing and commercial real estate market would be rocky for the next year or two due to the volume of underwater loans. The former secretary of labor under President Clinton, Robert Reich, believed the U.S. economy would have a very slow recovery and experience a double dip..
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.