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The Norris Group Real Estate News Roundup 8/25/10

Wednesday, August 25th, 2010

Today’s News Synopsis:

The MBA’s weekly survey shows that mortgage loan application volume increased by 4.9%. The Commerce Department reported new homes sales decreased 12.4% in July. According to Zillow, most Western states experienced a decrease in 20-year mortgage rates last week. California’s 30-year rate decreased to 4.30%.

In The News:

Mortgage Bankers Association - “Mortgage Refinance Applications Continue to Increase as Rates Decrease in Latest MBA Weekly Survey” (8-25-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 20, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 4.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 4.5 percent compared with the previous week”

Washington Post – “New home sales hit lowest level” (8-25-10)

“The Commerce Department reported Wednesday that new homes sold in July at an annual rate of 276,000, down 12.4 percent from June and down 32.4 percent compared with the same time last year”

Housing Wire – “Dow Closes Down Nearly 134 Points Following Bad Housing Data” (8-25-10)

“The American stock markets closed lower today following the news of homes sales dropping a staggering 27%. Stocks of big banks that have large mortgage-finance operations such as Citigroup (C: 3.68 -0.81%), Bank of America (BAC: 12.63 -0.08%), Wells Fargo (WFC: 23.4907 -0.63%) and JPMorgan (JPM: 36.179 -0.09%) closed lower despite doing large amounts of trading volume, according to the New York Stock Exchange”

Housing Wire – “Zillow: Rate on 30-Year Mortgage Remains Flat on Average” (8-25-10)

“Most western states saw a decline in rates: California’s current rate of 4.3% is down from 4.33% last week; Colorado’s at 4.17% is down from 4.19%; Washington’s at 4.29% is down from 4.33%; Illinois’ at 4.24% is down from 4.3%, and Florida’s at 4.2% is down from 4.21%.”

Housing Wire – “Deutsche Bank Summarizes Future of GSEs, Government Guarantee” (8-25-10)

“Key elements included re-launching of the MBS guarantee business backed by catastrophe insurance from the US government. This guarantee would implicitly serve as a backstop to the TBA pass-through market. In a panel with investors in the space, both of these aspects were considered key to maintaining adequate liquidity at the GSEs.”

Housing Wire – “House Prices Begin to Climb, Up 0.9% in Q2 in FHFA Index” (8-25-10)

“The agency said its second quarter HPI – calculated using information from mortgages acquired by Fannie Mae and Freddie Mac – rose 0.9% on a seasonally adjusted basis from the prior quarter, yet fell 1.6% from the year ago. Still, prices of other goods and services in the second quarter were 3% higher than the year earlier. This puts the second quarter inflation-adjusted home price about 4.4% higher than last year, according to the FHFA.”

Housing Wire - “Americans Continue to Deleverage with Credit Card Debt Below $5k per Person” (8-25-10)

“The average national credit card borrower debt slid downward for the fifth consecutive quarter by 4.1% to $4,951, marking the first time the average has been below $5,000 since 2002, according to a report released today by TransUnion. This, coupled with the fact the national credit card delinquency rate for borrowers 90-plus days delinquent plummeted to 0.92% in Q210 (down 17.1% from the first quarter and 21.3% from last year) suggests that borrowers are saving more and spending more responsibly.”

Orange County Register – “Thinking of a refi? Tips for borrowers” (8-25-10)

“This summer’s bout of falling mortgage rates has sparked yet another frenzy of homeowners looking to refinance their loans. Now could be a good time to do it, too, with interest rates at their lowest in decades — lower than in 2001, lower than in 2003 and even lower than in 2004, when we last told you rates were at record lows. They’re lower now.”

Orange County Register – “O.C. housing risk 9th highest in U.S.” (8-25-10)

“Orange County home prices have 99.7% chance of price loss in two years, or by the winter of 2012. PMI Group doesn’t say how big of a price drop that would be, so the declines could be small or large. Nationwide, the average risk for price drops was 51.9% — down from 53.8% the previous quarter.”

Looking Back:

One year ago, the CAR reported Home sales increased 12 percent in July in California. Nationally home prices fell 6.1 percent in the second quarter from 2008, claimed the FHFA.

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.

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The Norris Group Real Estate News Roundup 7/27/10

Tuesday, July 27th, 2010

Today’s News Synopsis:

The S&P home price index suggests that prices increased by 1.3 percent from April to May. 91 of the top 100 homebuying zip codes are in California. The vacancy rate for rental housing has remained flat at 10.6 percent for the past year. MPF Research reports the number of occupied apartments grew by 215,000 in the 64 largest U.S. markets in the first half of 2010.

In The News:

Associated Press – “Home prices increase 1.3 pct. in May from April” (7-27-10)

“The Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday posted a 1.3 percent increase in May from April. Nineteen of 20 cities showed price gains month over month. Minneapolis and Atlanta led the way with 2.8 percent and 2 percent increases, respectively. And San Diego posted its 13th straight monthly gain.”

Inman - “California ‘hot’ among homebuyers” (7-27-10)

“Of the report’s 100 ‘hottest’ ZIP codes nationwide, 91 were in California. This means that, on average, homes in these ZIP codes sold for the most above listing price, while homes in the ‘coldest’ ZIP codes sold for the most under listing price.”

Housing Wire – “Housing Vacancy, Homeownership Rates Remain Level in Q210″ (7-27-10)

“The 2.5% vacancy rate of owner-occupant housing units was only 10 basis points (bps) below the previous quarter and remained level with the year-ago quarter. The rental housing market’s vacancy rate of 10.6% in Q210 was level with the previous quarter and year-ago quarter. Additionally, the homeownership rate slipped to 66.9%, nearly level with 67.1% in the previous quarter”

Housing Wire – “HUD Fines CitiMortgage $700,000 for Failure to Report Delinquencies” (7-27-10)

“The US Department of Housing and Urban Development (HUD) reached a $700,000 settlement with CitiMortgage, Inc. (CMI) after the company failed to report delinquent loans by the specified monthly deadline. The action was reported in a recently released notice of actions being taken against Federal Housing Administration (FHA) lenders that failed to comply with government standards for lending practices.”

Housing Wire – “FHFA Sees 30-Year Mortage Rate Dip to 5% June” (7-27-10)

“The average contract mortgage rate on conventional 30-year fixed-rate mortgages slipped to 5% in June, 12 basis points (bps) down from a month earlier, according to the Federal Housing Finance Agency (FHFA). The rate had held at 5.12% for the past two months. The contract rate on the composite of all mortgage loans (both fixed- and adjustable-rate) fell 9 bps to 4.9%”

Bloomberg - “Apartment Rentals Surge in U.S. on Home Foreclosures, Job Gains” (7-27-10)

“The number of occupied apartments increased by 215,000 in the 64 largest U.S. markets in the first half, according to MPF Research. That’s almost double the units added in all of 2009 and the most since the firm began tracking the data in 1992. The vacancy rate declined to 6.6 percent last month from 8.2 percent in December.”

Bloomberg - “U.S. Cities, Counties Poised to Cut 500,000 Jobs, Report Finds” (7-27-10)

“U.S. local governments may cut almost 500,000 jobs through next year to cope with sliding property taxes, a decline in state and federal aid and added need for social services, according to a report released today. The report, a result of a survey by the National League of Cities, the U.S. Conference of Mayors and the National Association of Counties, showed local governments are moving to cut the equivalent of 8.6 percent of their workforces from 2009 to 2011. That suggests 481,000 employees will lose their jobs, according to the report, which said the tally may yet rise.”

Orange County Register – “Hear why next housing peak ‘2016 or beyond’” (7-27-10)

“Economist Mark Schniepp of the California Forecast tells ocregister.com in a podcast interview that local housing will endure a recovery that’s ‘painstakingly frustrating’ in its modesty with improving but not impressive sales volumes and prices. But it will take a big turnabout in the employment picture before hosuing’s rebound become significant but it will still be ‘until 2016-2017 or beyond’ before the old peaks are surpassed.”

Housing Wire – “Big 4 Banks Add $9.5bn in Nonperforming, Foreclosed Properties in One Year” (7-27-10)

“Each of the ‘big-four’ banks, Bank of America (BAC: 14.19 +0.28%), Wells Fargo (WFC: 28.39 +1.72%), JPMorgan Chase (JPM: 40.69 +0.89%) and Citigroup (C: 4.16 +0.24%) released quarterly earnings reports for Q210 in July, reporting a total increase of $9.5bn in nonperforming or foreclosed properties from the same quarter last year.”

Looking Back:

One year ago, pools increased a homes value by up to 11 percent in Southern California. Fiserv predicted that California would be the hottest home market in 2010. New home purchases climbed 11 percent in June 2009.

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The Norris Group Real Estate News Roundup 7/15/10

Thursday, July 15th, 2010

Today’s News Synopsis:

According to MDA DataQuick, 8,373 homes closed escrows in the Bay Area last month. Freddie Mac announced the average rate for 30-year fixed loans this week was 4.57 percent. The Federal Open Market Committee expects economic expansion to increase considerably slower over the next couple years than it previously expected. California is currently the second most popular place for foreign home buying.

In The News:

Business Journal – “Brown sues housing agency over halt to PACE programs” (7-14-10)

“California Attorney General Jerry Brown on Wednesday filed a lawsuit against The Federal Housing Finance Agency and mortgage giants Fannie Mae and Freddie Mac in the wake of the federal agency’s negative assessment of the Property Assessed Clean Energy Program. Brown, California’s Democratic candidate for governor, asks the court to require Fannie Mae and Freddie Mac to recognize PACE assessments.”

DQNews - “Bay Area June Home Sales Send Mixed Signals” (7-15-10)

“Last month a total of 8,373 homes closed escrows in the nine-county Bay Area, up 1.3 percent from 8,264 in May but down 3.1 percent from 8,644 in June 2009, according to MDA DataQuick of San Diego.”

Los Angeles Times – “U.S. home foreclosures reach record high in second quarter” (7-15-10)

“U.S. bank repossessions increased 38% in the second quarter from the same period a year earlier for a record total of 269,952, according to Irvine research firm RealtyTrac. That was also a jump of 5% from the previous quarter. If that pace continues through the year, the number of homes taken by banks is likely to top 1 million by the end of 2010, said Rick Sharga, RealtyTrac senior vice president.”

San Francisco Chronicle – “Mortgage rates remain at lowest level in decades” (7-15-10)

“Government-sponsored mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans this week was 4.57 percent. That’s the same as a week earlier and the lowest since Freddie Mac began tracking rates in 1971.”

Housing Wire – “Value of JPMorgan Government-Backed REO Triples Since 2009″ (7-15-10)

“REO insured by the US government totaled $1.4bn in Q210 compared to $508m in Q209. The latest results are nearly double the total from Q110, $707m. In addition, JPMorgan said nonaccruing mortgages insured by US government agencies were up 140% from Q209, at $10.1bn in Q210 compared to $4.2bn one year ago. Nonaccruing mortgages are those that are late and no longer acrruing interest. That volume is down, however, from $10.5bn in Q110, JPMorgan said.”

Housing Wire – “Feds: No Need to Change Rates Despite Slowdown in Housing” (7-15-10)

“The Federal Open Market Committee (FOMC) in its June 22-23 meeting decided to maintain its target zero to 0.25% federal funds rate despite signs of slowdown in economic and housing growth, according to meeting minutes released this week. Data on production and spending since the Feds’ last meeting remained aligned with expectations, but the pace of economic expansion over the next year and a half looks to be somewhat slower than previously predicted.”

Inman - “6 strategies for a realistic asking price” (7-15-10)

“Absorption rates are generally one of the most powerful ways to persuade sellers to be realistic. The calculation is relatively simple. In most areas, your local multiple listing service publishes how many months of inventory are currently on the market. Next, divide ‘1′ by the number of months of inventory. This gives you the percentage of listings that are selling each month. It also tells you the seller’s odds of selling in a given month. For example, if there are 12 months of inventory on the market, that means that the seller’s odds or probability of selling in any month is 8.3 percent (1/12). The probability the seller won’t sell in a given month is 91.7 percent (11/12).”

Orange County Register – “18% more hotels in financial distress” (7-15-10)

“Atlas Hospitality Group reports 73 more California hotels were in high financial distress — in default on their mortgage or foreclosed upon — in the second quarter vs. a year ago. This 478 second-quarter total is an 18% increase from the first quarter 2010 and up 132% vs. a year ago”

Orange County Register – “Calif. No. 2 spot for foreign homebuyers” (7-15-10)

“Florida was the top target for foreign buyers with (22%) of transactions in past year. California was second at 12%; then came Arizona (11%) and Texas (8%.) California was tops as recently as two years earlier.”

Orange County Register – “Is your ZIP a loan-fraud ‘hot spot?’” (7-15-10)

-Contains a list of cities in Orange County and their fraud rates

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.

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The Norris Group Real Estate News Roundup 7/8/10

Thursday, July 8th, 2010

Today’s News Synopsis:

According to Freddie Mac, the average 30-year fixed mortgage rate dropped to 4.57 percent. International Monetary Fund warns a double dip recession is still possible, despite its prediction that GDP will increase over the next year. Fitch Ratings predicts home improvement spending will increase 3.5% this year. Clear Capital reports national housing prices rose 5.2% during the last quarter.

In The News:

Associated Press - “Mortgage rates drop to new low of 4.57 pct.” (7-8-10)

“The average rate on a 30-year fixed mortgage dropped to 4.57 percent this week, mortgage company Freddie Mac reported Thursday. That’s down from the previous record low of 4.58 percent set last week.”

Housing Wire – “International Monetary Fund Warns of Housing Double-Dip Risk” (7-8-10)

“Signs of recovery in the US economy and housing market are stronger than expected, due to policy response from the federal government, according to the International Monetary Fund (IMF). While IMF expects US gross domestic product (GDP) growth of 3.25% in 2010 and 3% in 2011, unemployment is projected to remain above 9%.”

Housing Wire – “Fitch: Homebuyer Tax Credit Will Boost Home Improvement Spending” (7-8-10)

“Fitch Ratings expects home improvement spending to increase 3.5% in 2010 over 2009 levels, partly due to an influx of home sales incentivized by the first-time homebuyer tax credit”

Housing Wire – “Wells Fargo to Lay Off 3,800 Employees, Leave Non-Prime Space” (7-8-10)

“In a restructuring of its financial division, Wells Fargo (WFC: 26.64 -0.08%) said it will eliminate 2,800 positions in the next two months and another 1,000 people by the end of the year. The bank will close 638 financial stores in the US as it will stop originating non-prime portfolio mortgage loans.”

Housing Wire – “Fannie, Freddie Dropped from New York Stock Exchange” (7-8-10)

“The Federal Housing Finance Agency (FHFA) directed the government-sponsored enterprises (GSEs) in June to de-list from the NYSE and any other national securities exchange. The direction came after the price of their common stock hovered near the minimum average closing price of $1 for more than 30 days for most months since the conservatorship took effect in September 2008.”

Housing Wire – “House Prices Soar 8.8% from 2009: Clear Capital” (7-8-10)

“House prices rose in June across the US in both the rolling quarter and the previous-year data, according to real estate asset valuation data provider Clear Capital. National prices rose 5.2% over the previous three-month period and 8.8% since June 2009. The quarterly and yearly growth seen in June builds on already positive data, after prices climbed 6.8% in May from the year before.”

Housing Wire – “John Burns Sees Housing Market Hit Bottom with Little Downside to Investing” (7-8-10)

“The housing market has improved in the last two years to the extent that John Burns Real Estate Consulting sees the market as possibly approaching the beginning of its next up cycle.”

Bloomberg – “Apartment Vacancies in U.S. Drop From 30-Year High, Reis Says” (7-8-10)

“The vacancy rate for apartment properties was 7.8 percent, down from a 30-year high of 8 percent in the first quarter and up from 7.7 percent a year earlier, according to a report today by the real estate research firm. First-quarter vacancies were the highest since 1980, when Reis began tracking the data.”

Orange County Register – “O.C. builders rank among U.S. top 40″ (7-8-10)

“Seven homebuilding companies based in Orange County or having a strong presence here ranked in Builder Magazine’s newest list of the nation’s Top 100 Builders. Five of them were among the nation’s top 40 builders.”

Looking Back:

One year ago, 68 percent of recent home buyers said price decreases encouraged them to buy a house. PMI forecasted that home prices would decrease through 2011. Default rates doubled for commercial properties valued at more than $108 billion.

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.

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The Norris Group Real Estate News Roundup 7/7/10

Wednesday, July 7th, 2010

Today’s News Synopsis:

The MBA reports mortgage loan application volume increased 6.7 percent from last week. Delinquencies on home equity loans decreased to 4.12% in the first quarter. 89 percent of mortgage lenders intend to, or already, offer Web-based mortgage application services. The average price discount on foreclosed properties nationwide is 26 percent.

In The News:

Mortgage Bankers Association – “Mortgage Refinance Applications Increase in Latest MBA Weekly Survey” (7-7-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 2, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 6.7 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 6.5 percent compared with the previous week.”

CNet - “Freddie, Fannie reject energy retrofit loans” (7-7-10)

“The FHFA said it does not object to all energy retrofit loans, but specifically to those PACE or PACE-like energy loans that are essentially structured as property taxes and, therefore, have first lien. In the event of a foreclosure on the property, those loans are legally required to be paid off first before any money goes to the mortgage lender.”

Los Angeles Times – “Home equity loan delinquencies fall for first time in two years” (7-7-10)

“The percentage of home equity loans on which consumers were at least one payment late declined to 4.12% in the first quarter from 4.32% the previous quarter. Not since the first quarter of 2008, when the rate fell to 2.34% from 2.39%, had there been a decline. Missed payments on consumer loans overall improved for the third straight quarter, the ABA said in its quarterly Consumer Credit Delinquency Bulletin. Bank card delinquencies fell from 4.39% to 3.88% of all accounts — the first time since 2002 that card delinquencies were below 4%.”

Housing Wire – “When it Comes to Servicing Ginnie Mortgages, BofA Scores Again” (7-7-10)

“BofA-serviced Ginnie loans ranked among the lowest in terms of 60-day delinquencies (less than 1% in May), followed closely by Wells Fargo (WFC: 26.67 +6.04%) (just over 1%). Countrywide loans had the highest 60-day delinquency rate of around 3%”

Housing Wire – “Tech Developer’s Survey Finds Lenders Expect Surge in Online Mortgage Volume” (7-7-10)

“18% of mortgage lenders offer so-called ’smart’ Web-based mortgage application services. The survey defines ’smart’ software products as those that are interactive mortgage-application systems that are a fully transactional, Web-based solution that intelligently guides borrowers through the application, adjusting the questions for applicants according to responses. Of the remaining companies that current do not offer the service, 71% said they will adopt online mortgage application technology sometime in the future, while 14% said they would not. The remaining 15% responded they were unsure.”

Bloomberg - “U.S. Commercial Property Sales Trail Six-Year Average” (7-7-10)

“U.S. commercial real estate sales in the first half totaled about a quarter of the average of the previous six years as owners kept properties off the market, impeding investors with record funds for purchases. Buyers and sellers completed $34.2 billion of deals through June, or 26 percent of the average first-half dollar volume since 2004, according to preliminary figures from Real Capital Analytics. The total was about 12 percent of the 2007 peak, when $277.7 billion of properties changed hands in the same period, data from the New York-based real estate research firm show.”

Realty Times – “Short Sale Tactics May Bring on Legal Liabilities For Agents” (7-7-10)

“Real estate agents know that short sales are likely to be time-consuming and frustrating. What many don’t know is that short sales carry high risks of legal liability for agents. One area of short sales that is fraught with liability is in the use of negotiators. In California, short sale negotiators must possess a real estate license and are subject to a variety of regulations. Moreover, a negotiator’s agency relation to the principals is frequently unclear and undisclosed. Undisclosed dual agency is a particular problem.”

Orange County Register – “O.C. builders hit by tax break’s demise” (7-7-10)

“The total number of O.C. sales contracts — the start of escrow for new home purchases — tumbled to 191, down from 218 in April, according to Costa Mesa-based Hanley Wood Market Intelligence, which tracks new home sales. May’s total was up a mere 3.8% from year-ago levels. By comparison, O.C. contracts had been up 39.7% in April. April 30 was the deadline to open escrow on a home purchase to qualify for the federal tax credit.”

Orange County Register – “Calif. has 4th largest foreclosure discount” (7-7-10)

“The company ranked of 44 states and Washington D.C. (other states don’t have enough data for valid analysis, according to Realtytrac) for the gap between pricing for homes sold somewhere in the foreclosure process vs. those that were not anywhere in foreclosure. As for fat foreclosure discounts, Ohio led the nation at 39.5%, followed by Kentucky at 35.2% and Illinois at 35.1%. The average sales price of properties nationwide that sold while in some stage of foreclosure in the first quarter was 26 percent below the average sales price of properties not in the foreclosure process.”

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.

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The Norris Group Real Estate News Roundup 6/24/10

Thursday, June 24th, 2010

Today’s News Synopsis:

According to the CIRB, building permits were pulled for 3,088 housing units in May. Statistics from Freddie Mac show the 30-year fixed-rate mortgage averaged 4.69% last week. Several large banks, such as JP Morgan, are hiring thousands of mortgage officers in preparation to make more loans. TIGTA estimates the IRS awarded $26.7 million to fraudulent home buyer tax credit claims.

In The News:

CBIA - “California Housing Production Up in May, CBIA Announces” (6-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,088 total housing units in May, up 4 percent from the same month a year ago but down 6 percent from April. Permits for single-family homes totaled 1,902, down 19 percent from May 2009 and down 17 percent from the previous month, while multifamily permits totaled 1,186, up 87 percent from a year ago and up 17 percent from April.”

Market Watch – “Fixed-rate mortgages, 5-year ARMs hit lows: Freddie Mac” (6-24-10)

“The 30-year fixed-rate mortgage averaged 4.69% for the week ending June 24, down from 4.75% last week and 5.42% a year ago. Fifteen-year fixed-rate mortgages averaged 4.13%, down from 4.20% last week and 4.87% a year ago.”

CNN - “Banks: We’re hiring so we can make more home loans” (6-24-10)

“Several banks are gearing up to do a whole lot more mortgage lending in the future. Even though new homes sales were at a historical low in May and the housing market in general is in the doldrums, these banks are hiring hundreds of loan originators, getting ready for what they believe will be a significant pick-up in lending. JPMorgan Chase (JPM, Fortune 500), one of the nation’s largest lenders, is in the midst of hiring 1,200 mortgage officers.”

New York Times – “Fed Leaves Rates, Citing Overseas Threats” (6-24-10)

“The Federal Reserve’s policy-making arm said on Wednesday that it had decided to keep short-term interest rates near zero for ‘an extended period,’ citing challenges to economic growth, including the effect of new financial troubles abroad.”

Housing Wire – “Treasury Watchdog Says 1,295 Prisoners Claimed Homebuyer Tax Credit” (6-24-10)

“The Treasury Inspector General for Tax Administration (TIGTA) released its latest interim audit (download here) on Internal Revenue Service (IRS) efforts to identify and prevent fraudulent homebuyer tax credits. All told, TIGTA’s investigation estimates the IRS paid out $26.7m in erroneous credits, less than 1% of the estimated $13.6bn in homebuyer tax credits claimed. Of the approximately 1.2m individuals who claimed the credit, TIGTA estimates 14,132 — about 1.1% — are erroneous or fraudulent claims.”

Housing Wire – “AIA Economist: Desperate Architects Find Themselves in Heated Bidding Wars” (6-24-10)

“We’ve certainly seen the pendulum swing in the other direction, probably even further back than where it started at over the last five years. Homes have gotten smaller. There is much more emphasis on not over investing or over improving. There’s a greater concern over affordability. What can I sell this for when I want to sell it and not trying to over extend the household in this economic environment.”

Housing Wire – “Regulators Find More than Half of Mortgage Modifications in Trouble Again” (6-24-10)

“Of the more than 1m modifications done in 2008 and 2009, 53% are either delinquent or in foreclosure again in Q110, according to a report from Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS).”

Housing Wire – “FHFA Monthly 30-Year Mortage Rate Report Unchanged in May” (6-24-10)

“In its report, the FHFA said the average interest rate for a conventional, 30-year fixed-rate purchase mortgage with a principal of $417,000 or less was 5.12% in May, even from last month’s report.”

Bloomberg - “Betting Who’s Right on Home Prices: Baker vs Maki” (6-24-10)

“Dean Maki, chief U.S. economist at Barclays Capital, says the worst is over for the U.S. housing sector. Dean Baker, co-director of the Center for Economic and Policy Research, expects another painful decline. They reflect an almost even split among forecasters on the outlook for residential real estate, and whichever side turns out to be right will have made a call on more than just home prices. Housing will play a crucial role in the direction of the nation’s economy and global financial markets, just as it triggered a two-year recession that erased more than 8 million U.S. jobs and $37 trillion from world stock markets.”

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.

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The Norris Group Real Estate News Roundup 6/22/10

Tuesday, June 22nd, 2010

Today’s News Synopsis:

According to the MBA, the level of commercial/multifamily mortgage debt outstanding decreased to $3.31 trillion in the first quarter. The NAR reports existing home sales decreased by 2.2 percent last month. California home sales increased 1.2 percent last month. An amendment to the Wall Street Reform Bill being debated today in Congress would eliminate the hotly contested Home Valuation Code of Conduct.

In The News:

Mortgage Bankers Association – “MBA Analysis: Commercial and Multifamily Mortgage Debt Outstanding Declined 0.9 Percent in First Quarter 2010″ (6-22-10)

“The level of commercial/multifamily mortgage debt outstanding decreased in the first quarter, to $3.31 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data. Declines were driven by drops in commercial and multifamily mortgages held in CMBS and construction loans held by banks and thrifts. The $3.31 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $31 billion or 0.9 percent from the fourth quarter of 2009. Multifamily mortgage debt outstanding rose to $852 billion, an increase of $3 billion or 0.4 percent from the fourth quarter of 2009.”

NAR - “May Shows a Continued Strong Pace for Existing-Home Sales” (6-22-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.”

California Builder – “Market Your Way Out of Tough Times” (6-22-10)

“Many businesses think ‘keeping your name in front of the public’ is a valid advertising strategy. It’s questionable at best, but it’s way too risky and low-yield in tough times. Instead, make sure your advertising is only in publications that reach your best prospects, and – this is the most important part – make a specific offer and call to action to get readers of the ad to call you.”

CAR - “May sales and price report” (6-22-10)

“Home sales increased 1.2 percent in May in California compared with the same period a year ago, while the median price of an existing home rose 23.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Sacramento Bee – “California personal income grows in quarter” (6-22-10)

“Personal income in California grew $14 billion to $1.57 trillion in the first quarter compared with the last quarter of 2009, according to statistics released Friday by the U.S. Bureau of Economic Analysis. The 0.9 percent gain matched personal income growth for the United States, but California ranked 27th among all states.”

Inman - “Social networking sites gobble more traffic” (6-22-10)

“Social networking sites and websites hosting forums grew their market share by nearly 62 percent during the year ending in May — the largest gain among any real estate-related category, according to a new quarterly report from online metrics firm Hitwise. Visits to websites in the real estate category during May were down 24.3 percent from a year ago — the 12th consecutive month of year-over-year traffic declines dating to June 2009, the report said.”

Inman - “California may restrict lender claims over refis” (6-22-10)

“SB 1178, which passed the state Senate in a 30-4 vote on June 3, would extend protection from deficiency judgments to homeowners who have refinanced, but only up to the amount of their original loan. In other words, if the original mortgage was $300,000, and the homeowner refinanced and defaulted on a $350,000 loan, they would not be liable to repay the first $300,000.”

Housing Wire – “House Members Look to Eliminate HVCC, Change Appraisal Process” (6-22-10)

“An amendment to the Wall Street Reform Bill being debated today in Congress would eliminate the hotly contested Home Valuation Code of Conduct (HVCC), which has changed much of the home appraisal process since its introduction last year. The Federal Housing Finance Agency (FHFA) implemented HVCC in May 2009 in an attempt to improve the independence of appraisers by prohibiting lenders and third parties from influencing appraisals. It also limits the interactions between the appraisers and those originating the loan.”

Housing Wire – “Fannie and Freddie Servicers Refinance 53% More Loans in Q110: FHFA” (6-22-10)

“Mortgage servicers refinanced 53% more Fannie Mae Mae and Freddie Mac loans under the Home Affordable Refinance Program (HARP) in Q110 than in the previous quarter, according to the Federal Housing Finance Agency (FHFA). Delinquencies are improving as well in the Fannie and Freddie portfolios. According to the FHFA, the amount of loans behind by 60 or more days declined for the first time in two years, dropping by more than 23,000 to roughly 1.7m in Q110.”

Housing Wire – “Real Estate Owned Inventory to Peak in Summer 2011: BarCap” (6-22-10)

“The amount of REO inventory held by lenders is expected to peak in August 2011 at 545,000 properties, according to analysts at Barclays Capital. In April, REO remained relatively flat, increasing 0.8% from March to 526,000. The influx was primarily due to an increase in REO from the government-sponsored enterprises (GSEs), according to BarCap.”

Looking Back:

One year ago, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70% of the units have been sold. The Mortgage Bankers Association lowered its forecast of mortgage originations for 2009 to $2.03 trillion. Many lawmakers and businesses were calling for an extension of the $8,000 tax credit.\

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.

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The Norris Group Real Estate News Roundup 5/27/10

Thursday, May 27th, 2010

Today’s News Synopsis:

According to the San Francisco city Assessor-Recorder, 6,462 residential property owners in San Francisco applied for temporary property tax breaks this year. Freddie Mac reports the average U.S. rate for a 30-year fixed mortgage fell to 4.78 percent for the week. Statistics from FHFA show the average interest rate on conventional 30-year FRM with a principal of $417,000 or less increased to 5.12% this month.

In The News:

San Francisco Chronicle – “Thousands more in S.F. seek property tax breaks” (5-27-10)

“In another sign that the economy is taking a long time to rebound, a staggering 6,462 residential property owners in San Francisco applied for temporary property tax breaks this year, city Assessor-Recorder Phil Ting reported Wednesday.”

Bloomberg - “U.S. Home Loan Rates Near Record Low on Europe Crisis” (5-27-10)

“Europe’s debt crisis is translating into lower mortgage rates for Americans as investors fleeing to the refuge of U.S. bonds push borrowing costs close to December’s record low. The average U.S. rate for a 30-year fixed mortgage fell to 4.78 percent for the week ended today from 4.84 percent, Freddie Mac said in a statement today. The record low is 4.71 percent. This week’s average 15-year fixed rate was 4.21 percent, the McLean, Virginia-based mortgage finance company said.”

Bloomberg - “Mortgage Lenders Seek Relief on Bad Debt Repurchases” (5-27-10)

“Mortgage lenders are seeking relief from Fannie Mae and Freddie Mac as the government-supported companies force them to buy back more soured debt, said John Courson, president of the industry’s largest trade group.”

Housing Wire – “FHFA Proposes Mortgage Purchase Goals for Home Loan Banks” (5-27-10)

“The FHFA is seeking comment on the establishment of three purchase money mortgage goals and one refinancing mortgage goal. The goals for purchase mortgages would separately measure performance on purchase mortgages for low-income families, for families in low-income areas, and for very-low-income families. The goal for refinance mortgages would measure performance on refinancings for low-income families.”

Housing Wire – “FHFA Sees Interest Rates Tick up in April” (5-27-10)

“According to the FHFA monthly report, the average interest rate on conventional 30-year FRM with a principal of $417,000 or less increased 3 basis points (bps) to 5.12% from March’s average of 5.09%. The average rate for a 15-year FRM of $417,000 decreased 5 bps to 4.52% in April.”

Looking Back:

One year ago, the NAR reported existing home sales increased by 2.9 percent. Mortgage application volume decreased by 14.2 percent on a seasonally adjusted basis from the previous week. The average price of a U.S. home fell 7.1 percent in the first quarter of 2009. Yields on Washington-based Fannie Mae’s current-coupon 30- year fixed-rate mortgage bonds climbed to 4.51 percent.

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.

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The Norris Group Real Estate News Roundup 4/27/10

Tuesday, April 27th, 2010

Today’s News Synopsis:

The S&P Index shows home prices increased in February. Speculators believe the Federal Reserve will keep interest rates at the current low. The LexisNexis Mortgage Asset Research Institute reports that fraud increased by 7 percent last year. According to the FHFA, the average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09% this month.

In The News:

Business Week – “Home price index shows 1st annual gain in 3 years” (4-27-10)

“Home prices in February posted their first annual increase since the end of 2006, pumped up by a temporary tax credits for homebuyers. The Standard & Poor’s/Case-Shiller home price index released Tuesday eked out a 0.6 percent gain, half the increase analysts had expected. And on a more cautionary note, 11 of the 20 cities tracked by the index showed declines from February last year.”

The Press Enterprise – “Fed expected to keep rates at record lows” (4-27-10)

“Confidence is growing that the economic rebound will strengthen. And to make sure it does, the Federal Reserve is considered certain to hold interest rates at record lows when it meets this week. ”

San Francisco Chronicle – “Mortgage fraud incidents rise 7 pct last year” (4-27-10)

“Incidents of residential mortgage fraud increased last year, a sign that scammers are still targeting the industry despite more diligent efforts to find and report such activity. The number of mortgage fraud reports among loans made in 2009 grew 7 percent, a smaller increase than the 26 percent jump seen the previous year, according to a study released Monday by the LexisNexis Mortgage Asset Research Institute.”

Housing Wire – “State HFAs Submit Proposals to Spend $1.5bn Hardest Hit Fund” (4-27-10)

“Three of the five state Housing Finance Agencies (HFAs) receiving $1.5bn from the Treasury Department through the Hardest Hit Fund released proposals on how they would spend the money. In March, the Treasury cleared the HFAs of states where house prices dropped 20% from the peak to submit proposals to use the funds from the Troubled Asset Relief Program (TARP).”

Housing Wire – “FHFA Sees Interest Rates Dip, Hover Around 5% in March” (4-27-10)

“The average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09%, down from 5.13% one month ago. The average rate for a 15-year FRM of $417,000 or less was 4.57%, down from 4.65%. The FHFA measured interest rates on loans that closed between March 25 and 31. Since the rate is typically determined 30 to 45 days prior to closing, the report depicts market conditions prevailing in mid- to late-February, the FHFA said.”

Housing Wire – “Fannie Extends REO Discount Deadline” (4-27-10)

“Fannie Mae (FNM: 1.21 -3.20%) extended its seller assistance incentive on all of its HomePath properties this week. In February, Fannie began providing a 3.5% discount to buyers of its REO properties listed as part of its HomePath division. The discount can be used for closing cost assistance or the buyer’s choice of appliances.”

Housing Wire – “Goldman’s Tourre Denies Misleading Investors in Subprime RMBS CDO” (4-27-10)

“An executive at embattled Goldman Sachs (GS: 153.04 +0.66%) denied before a Senate panel today that he misled investors in a synthetic collateralized debt obligation (CDO) tied to the performance of subprime residential mortgage-backed securities (RMBS). The Securities and Exchange Commission (SEC) is charging investment bank Goldman and the executive director of its structured products group trading, Fabrice Tourre, for allegedly making misleading statements about the CDO transaction, ABACUS 2007-AC1.”

Bloomberg - “‘Tourists’ May Leave Real Estate as Rates Rise, Sternlicht Says” (4-27-10)

“If interest rates head higher, ‘you will see a pause that will take a lot of capital out,’ he said. Corporate bonds may benefit, according to Sternlicht. A rebound in the real estate market is being hampered by weak demand and commercial-mortgage-backed financing that declined 95 percent last year from its record level in 2007. Vacancies in the first quarter rose to the highest level since at least 2000 at the nation’s biggest malls, and climbed to a 16-year peak at office buildings, research firm Reis Inc. said earlier this month. “

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The Norris Group Real Estate News Roundup 4/23/10

Friday, April 23rd, 2010

Today’s News Synopsis:

Existing home sales rose 6.8 percent in March. Mortgage origination volumes decreased 46 percent in 2009. US house prices dropped 0.2% from January to February. Fannie Mae and Freddie Mac are creating the Loan Modification Scam Prevention Network which will work to educate borrowers and take in complaints.

In The News:

NAR - “Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions” (4-22-10)

“Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 6.8 percent to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1 percent above the 4.61 million-unit level in March 2009.”

Mortgage Bankers Association – “Mortgage Bankers’ Commercial/Multifamily Originations Down 46 Percent in 2009″ (4-22-10)

“Commercial and multifamily mortgage origination volumes decreased 46 percent in 2009 among repeat reporters, with mortgage bankers reporting $82.3 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Association’s 2009 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.”

Los Angeles Times – “Little change in home loan rates, Freddie Mac reports” (4-22-10)

“The typical rate being offered this week for a 30-year fixed-rate home loan was unchanged at 5.07%, with borrowers paying 0.6% of the loan balance in upfront lender fees, Freddie Mac said Thursday. For 15-year fixed mortgages, the rate pulled back from 4.40% last week to 4.39% this week with 0.7% in upfront lender fees, according to the weekly survey of lenders by the big home-loan buyer.”

Housing Wire – “Obama Urges Support for Financial Reform Legislation” (4-22-10)

“He urged the adoption by Congress of a single reform bill that not only protects the financial sector and consumers alike, but gives shareholders more power in the financial system and brings ‘complex financial dealings out of the shadows.’ In particular, Obama praised the bill passed by a Senate panel this week that aims to bring greater transparency to derivatives trading.”

Housing Wire – “Home Prices Drop Again in FHFA Report” (4-22-10)

“US house prices dropped another 0.2% on a seasonally adjusted basis from January to February, following a 0.6% drop the month before, according to the Federal Housing Finance Agency (FHFA) house price index (HPI). While there have been scattered upward ticks since the 13.3% fall from the April 2007 peak, the curve on the double-dip might be taking shape as shown in the graph below.”

Orange County Register – “Durables Orders in U.S. Probably Rose as Home Sales Lag Behind” (4-22-10)

“Orders for long-lasting goods probably climbed in March for a fourth consecutive month, while sales of new homes increased from a record low, pointing to an uneven U.S. recovery. Bookings for durable goods rose 0.2 percent after a 0.9 percent February gain, according to the median forecast of 75 economists surveyed by Bloomberg News. New-home purchases advanced 5.5 percent to a 325,000 annual rate from the prior month, another report may show.”

CNN - “New-home sales rise fastest in 47 years” (4-23-10)

“New home sales improved in March at the fastest single-month rate in 47 years, according to a government report released Friday, as buyers snatched up properties ahead of the tax credit that’s set to expire. New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The gain snapped a four-month streak of declines.”

Housing Wire – “Fannie and Freddie Unite Against Mortgage Modification Scams” (4-23-10)

“A new coalition, led by Fannie Mae (FNM: 1.26 +1.61%) and Freddie Mac (FRE: 1.515 +1.00%), will launch a national campaign to prevent loan modification scams. The Loan Modification Scam Prevention Network also includes the Lawyer’s Committee for Civil Rights Under Law and NeighborWorks America, which is a network of community development and affordable housing organizations. The network will work to educate borrowers, take in complaint reports and coordinate with local, state and federal enforcement agencies.”

Housing Wire – “Flat Febasruary House Prices Spur Foreclosure Inventory Fears: RadarLogic” (4-23-10)

“House prices remained flat in February on both a month-over-month and year-over-year basis, according to the Radar Logic Residential Property Index (RPX). The 2% increase in the Western region RPX composite balanced the 2% decline in the Northeast and South RPX, keeping prices stable overall from last month. Transactions grew the most since last year in metropolitan areas that are hardest-hit with foreclosures, Radar Logic said, including Las Vegas, Chicago, Miami and Detroit.”

Bloomberg - “U.S. Homebuilders Rally as March Shows Sales Surge” (4-23-10)

“U.S. homebuilding stocks, led by Lennar Corp. and Pulte Group Inc., are headed to the biggest weekly gain since July as two reports showed sales are recovering from the depths of the housing-market collapse. New home sales increased 27 percent in March from the previous month to an annual pace of 411,000, the largest rise since recordkeeping began in 1963, the Commerce Department said today. Sales of existing homes jumped 6.7 percent to 5.35 million in March, the first increase in four months, the National Association of Realtors reported yesterday.”

Realty Times – “Conditions Versus Obligations” (4-23-10)

“A problem arises when Agents mistake conditions for objections. Agents often treat a condition as an objection and beat themselves up when they don’t get the transaction or contract signed. The definition of a condition is a valid reason for the prospect to not move forward. You still need to try all the techniques of handling the objection. You just need to realize that a condition is usually linked to their ability or authority to act now.”

Orange County Register – “Home prices up in 70% of O.C.” (4-23-10)

“66 of O.C.’s 83 ZIP codes had gains in their respective median selling price. Overall, prices were +14.0% vs. a year ago. Taking sales volume in consideration, home pricing is up in ZIPs representing 70% of the Orange County market.”

Orange County Register – “South Coast home sales up 21% over year” (4-23-10)

“The sales-weighted average of median price changes in South Coast ZIPs was -10% vs. a year ago. Price change in all Orange County beach towns ran +13% vs. a year ago.”

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