Today’s News Synopsis:
In a big news story, Ally Financial’s mortgage unit ResCap filed for bankruptcy. With this bankruptcy, Ally Financial will focus their efforts on paying off their debt to the Treasury from a $17.2 billion bailout. Due to the increase in foreclosures, serious delinquencies increased .5% last December for the first time since showing signs of decreases between December 2009 and June 2011.
In The News:
Housing Wire – “Robo-signing fractures REO inventory at GSEs” (5-14-12)
“Fannie Mae and Freddie Mac are managing bifurcated REO inventories because of the robo-signing effect on different areas of the country.”
DS News – “Shadow Inventory: 46 Months to Clear Distressed Housing Supply” (5-14-12)
“It will take 46 months to clear the market’s supply of distressed homes, or the shadow inventory, according to estimates from Standard & Poor’s Rating Services based on first-quarter 2012 data.”
Realty Times – “Real Estate Outlook: Median Existing Home Prices Balance” (5-14-12)
“The latest quarterly report from the National Association of Realtors (NAR) shows that median existing single-family home prices are indicating more balanced conditions.”
DS News – “Higher Foreclosure Rates Bump Up Serious Delinquencies” (5-14-12)
“According to a report from Foreclosure-Response.org, the serious delinquency rate, which includes loans 90 or more days past due plus foreclosures, increased for the first time after a downward trend between December 2009 and June 2011″
CNN Money – “JPMorgan trading flap stirs Congress” (5-14-12)
“Congress is beginning to weigh in on the news that JPMorgan Chase lost $2 billion on complex trades intended to hedge against economic risk, and that the losses could mount.”
Bloomberg – “Ally to Sell Non-U.S. Units as ResCap Goes Bankrupt” (5-14-12)
“Ally Financial Inc. (ALLY), the auto lender whose mortgage unit went bankrupt, may sell international car- finance and insurance operations to help repay a $17.2 billion U.S. bailout, Chief Executive Officer Michael Carpenter said.”
Housing Wire – “Federal Reserve, OCC and FDIC finalize stress test guidance” (5-14-12)
“The Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp. on Monday issued final supervisory guidance regarding stress-testing practices at banking organizations with total assets of more than $10 billion.”
DS News – “NAR Reports Members’ Income Rose for First Time Since 2002″ (5-14-12)
“For the first time since 2002, the National Association of Realtors (NAR) reported that income for its members (REALTORS®) increased in 2011.”
Inman – “New Freddie Mac CEO takes pay cut” (5-14-12)
“Freddie Mac’s new chief executive officer, former JPMorgan Chase & Co. executive Donald H. Layton, will make just a fraction of what his predecessor did.”
Housing Wire – “Foreclosure sales fall in Detroit” (5-14-12)
“A drop-off in April foreclosure sales in the Detroit market reflected better on conditions in the suburbs than in the inner city.”
DS News – “FinCEN: Mortgage Loan Fraud Sees Yearly Increase Since 1996″ (5-14-12)
“Out of seven different categories of fraud reported by depository institutions (banks, thrifts, credit unions), mortgage loan fraud (MLF) saw the second great increase from 2010 to 2011 and had the highest number of suspicious activity report (SAR) filings, according to a report from the Financial Crimes Enforcement Network (FinCEN).”
Hard Money Loan Closed
Victorville, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $36,000 on a 3 bedroom, 2 bathroom home appraised for $62,000.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Apartment Owners Association Million Dollar Trade Show on Saturday, May 17, 2012.
The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 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.