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

Wednesday, March 3rd, 2010

Today’s News Synopsis:

Bruce Norris estimated that lenders may lose up to $2.1 to 3.8 trillion before all the bad loans are taken off their books. According to the MBA, mortgage application volume increased from last week. The FHFA reports that Orange County home values increased by 6.38 percent in 2009. Last year, nearly 1,400 lawsuits were filed against lenders by homeowners in foreclosure.

In The News:

Press Enterprise – “Loan losses from home foreclosures could more than double” (3-3-10)

“Lenders who already have realized $1.5 trillion in losses due to home foreclosures could see their losses mount to an estimated $2.1 trillion to $3.8 trillion before all the bad loans are wiped off their books, a Riverside real estate expert told a gathering over the weekend. Bruce Norris, a real estate analyst, investor and principal of the Riverside-based Norris Group, told more than 400 real estate brokers and investors meeting in Costa Mesa Saturday that he had compiled these figures from data and estimates he obtained from ForeclosureRadar.com, Bloomberg Financial, Goldman Sachs, the International Monetary Fund, RGE Monitor and T2Partners.”

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

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 26, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 14.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 15.5 percent compared with the previous week.”

Orange County Register – “O.C.: Hottest U.S. housing market?” (3-3-10)

“Orange County home values — by one FHFA index that derives values from purchase records — rose 6.38% in 2009. That’s tops among the 25 major U.S. markets tracked by this methodology. Yes, O.C. is No. 1! We’re followed by Denver (+5.48%); Houston (+3.71%); and Pittsburgh (+3.26%).”

Sign On San Diego – “Hefty tax bill may hit those who lost home” (3-3-10)

“With less than six weeks before taxes are due, an estimated 16,000 former homeowners statewide will owe $15 million in extra income taxes this year and $29 million through 2012.”

Mercury News – “Increasing numbers of Californians are suing lenders to avoid foreclosures” (3-3-10)

“In the last five years, the number of foreclosure lawsuits filed in federal court in California has ballooned — like an exploding adjustable-rate mortgage — from only 29 statewide in 2005 to nearly 1,400 last year.”

Housing Wire – “Winter Weather Slows Residential Real Estate Growth: Beige Book” (3-3-10)

“In the January Beige Book, all but two Fed districts reported increased activity or improved conditions, with Philadelphia and Richmond seeing mixed results. Residential real estate markets remained weak or softened further in the New York, Atlanta, and Chicago districts and there was little change in the San Francisco district, the Federal Reserve Board said.”

Orange County Register – “Why loan mods & short sales take so long” (3-3-10)

“Hard to collect all necessary documents from borrower/owner. This may be because the banks never seem to receive the documents until they’ve been faxed in 5 or 6 times. It may be because it takes the borrower/owner or agent some time to respond to requests for documents.”

Inman - “90% of agents down on HAMP” (3-3-10)

“A mere 10 percent of real estate agents think the Obama administration’s Home Affordable Modification Program (HAMP) is reducing foreclosures in their market, according to a survey released Wednesday by real estate media and marketing provider Homes and Land. The company’s Market Pulse Survey Report asked more than 100,000 real estate agents nationwide to participate in a 10-question survey to gauge the state of housing in local markets. Nearly 5,800 agents responded; 51 percent had been a Realtor for more than 10 years. The company conducted the survey in February.”

Looking Back:

One year ago, Citigroup developed a plan which allowed unemployed homeowners to decrease their monthly payment to a minimum of $500. The NAR reported that home sales decreased by 7.7 percent within a month’s time. Bernanke claimed that the federal government needed to increase its fiscal involvement in the banking system. The government launched its $1 trillion TALF program.

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The Norris Group Real Estate News Roundup 2/25/10

Thursday, February 25th, 2010

Today’s News Synopsis:

A CAR survey shows that 67 percent of home sellers chose to sell because of their inability to pay mortgage debt. The FHFA reports that U.S. home prices decreased by 1.2 percent in the fourth quarter. A survey shows that agents and brokers are growing increasingly pessimistic of the future of real estate. According to FHFA, the rate for 30-year FRMs increased to 5.1 percent in January.

In The News:

San Francisco Chronicle – “Newsom plan would defer up-front developer fees” (2-25-10)

“The mayor’s administration says the package of legislation, tentatively set to go before the Board of Supervisors’ land use committee March 15, would cut up-front costs for developers, making it easier to get financing in this recession. Newsom said his proposals would speed up start times on four specific projects by as much as two years, including the second tower in the One Rincon Hill development. Work on the four projects could start in two months, he said.”

CAR - “C.A.R. releases ‘2009-2010 Survey of California Home Sellers’” (2-25-10)

“Changes in family and employment status as well as adjustments to monthly mortgage obligations played significant roles in California’s homeowners’ decisions to sell their homes in 2009, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) ‘2009-2010 Survey of California Home Sellers.’ According to the report, 67 percent of all sellers in California did so as a result of difficulties related to meeting their mortgage obligation.”

Bloomberg - “Home Prices Decline 1.2%, Smallest Drop in Two Years” (2-25-10)

“U.S. home prices fell 1.2 percent in the fourth quarter from a year earlier, the smallest loss in two years, as a federal tax credit for homebuyers boosted demand. Prices were down 0.1 percent from the third quarter, the Federal Housing Finance Agency said today in a report. The year- over-year drop was the smallest since a 1.1 percent decline in 2007’s fourth quarter, the Washington-based agency said.”

Inman - “Agents, brokers less rosy on future” (2-25-10)

“Short-term views for the next three to six months deteriorated 2.89 percent, to 5.71, while long-term views for the next 12 to 18 months fell 4.1 percent to 6.32. The survey pointed to expected interest rate hikes, the poor jobs market, and the imminent April 30 deadline (for a home sale to be under contract) for the federal homebuyer tax credit program as participants’ major concerns.”

Housing Wire – “FHFA Mortgage Rate Tracker Posts Increase in January” (2-25-10)

“The average interest rate on conventional 30-year, fixed-rate mortgage (FRM) with a principal of $417,000 or less was 5.1% in January, an increase from 5.05% in December, the FHFA said. The average interest rate on 15-year FRM of $417,000 or less stayed at 4.54% in January.”

Housing Wire – “Delinquent CMBS Triples as Spreads Stabilize” (2-25-10)

“Realpoint reviewed more than $797bn in CMBS pools for the January report. The firm calculated a 5.76% delinquency rate for the pools reviewed, up from 5.22% in December. The rate jumped by more than four times the rate in January 2009, when 1.2% of the reviewed loans fell delinquent. June 2007 held the lowest delinquency rate recorded by Realpoint, at 0.2%.”

Housing Wire – “Bankers Propose Mortgage Forebearance for Unemployed” (2-25-10)

“The program would give incentives to investors and servicers (through Treasury’s TARP) that place unemployed borrowers in a forbearance plan for up to 90 days — a period that can be renewed twice based on borrower’s financial circumstances. This plan would put a borrower in forbearance for up to nine months, at which time (or earlier, at re-employment status) eligibility for a HAMP trial can be determined.”

Bloomberg - “General Growth Is Biggest Real Estate Fight Since Equity Office” (2-25-10)

“The battle for General Growth Properties Inc., owner of more than 200 U.S. malls from Boston to Los Angeles, is turning into the biggest real estate fight since sale of Sam Zell’s Equity Office Properties Trust. Westfield Group, a Sydney-based property investor with stakes in 55 U.S. retail centers, signed an agreement letting it assess General Growth’s finances, a person familiar with the pact said yesterday. That may put Westfield in position to vie for the bankrupt company’s assets as part of a contest already embroiling Simon Property Group Inc. and Brookfield Asset Management Inc.”

Bloomberg - “Obama May Prohibit Home-Loan Foreclosures Without HAMP Review” (2-25-10)

“The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.”

Looking Back:

One year ago, existing home sales decreased by 5.3 percent. The MBA announced that mortgage loan application volume had decreased by 15 percent from the previous quarter. The Obama administration implemented a stress test of 19 banks. Bernanke claimed to be confident of the federal reserve’s ability to prevent inflation.

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The Norris Group Real Estate News Roundup 2/17/10

Wednesday, February 17th, 2010

Today’s News Synopsis:

 CBIA announced that housing affordability has decreased in 22 of California’s 28 metropolitan areas. The Commerce Department reports that housing and apartment construction increased by 2.8 percent last month. According to SFAR, there is a 3.5 month supply of housing inventory in the San Francisco market. A survey shows that large investment companies are spending more on REIT investments.

In The News:

CBIA – “California Housing Affordability Continues Slide in Fourth Quarter, CBIA Announces” (2-17-10)

“Housing affordability in California continued to fall throughout most of the state during the fourth quarter of 2009, the California Building Industry Association said today. The quarterly National Association of Home Builders/Wells Fargo Housing Opportunity Index found that homes were less affordable in 22 of the state’s 28 metro areas included in the report.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (2-17-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 12, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 2.1 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 0.5 percent compared with the previous week.”

Los Angeles Times – “Housing construction rises 2.8 percent in Janury” (2-17-10)

“The Commerce Department said Wednesday that construction of new homes and apartments rose 2.8 percent last month to a seasonally adjusted annual rate of 591,000 units. That was better than the 580,000 annual pace that economists were forecasting.”

Housing Wire – “Continental Conflicts Arising Over Banker Pay” (2-17-10)

“The majority of banking executives oppose government intervention in setting bank compensation parameters, according to a bank executive survey conducted from Nov. 17-Dec. 3, 2009 by US audit firm Grant Thornton. The sentiment, however, is not as greatly embraced abroad. The survey found 96% of 246 respondents do not agree the government should play a role in determining compensation, while 61% do not think a requirement to evaluate compensation will reduce excessive risk-taking.”

Housing Wire – “San Francisco Inventory at 3.5 Month Supply” (2-17-10)

“Despite a lull in luxury home sales, prices are up and inventory is down in the San Francisco market, according to a joint research report released by the Rosen Consulting Group and the San Francisco Association of Realtors. The report said there is a 3.5-month supply of single-family homes on the market, down from 5.8 months in January 2009. Condo inventory was at a 4.1-month supply, down from 9.5 months in January 2009.”

Housing Wire – “FHFA Proposes New Performance Goals for Fannie, Freddie” (2-17-10)

“The FHFA required, as the first goal for single-family housing, that 27% of the total number of mortgages purchased by Fannie and Freddie be of low-income family housing. The FHFA defined low-income as not exceeding 80% of the area median income.”

Inman - “5 arguments for open houses” (2-17-10)

“Want to pick a fight in a roomful of real estate agents? Ask them whether they think open houses are worthwhile. We did the virtual equivalent of that, sending out an online request for comments from real estate agents about the effectiveness of open houses — and they responded by filling up the old inbox faster than we could clean it out. Their responses range from passionate conviction that open houses are ‘a must,’ to cynical observations that they’re of benefit to no one other than to agents who are trolling for new clients.”

Realty Times – “Investor Report: REITs” (2-17-10)

“New York and London-based research firm Preqin reports that 62 percent of the large investment companies it surveyed said they plan to buy into – or add to their holdings – of private equity REITs, or real estate investment trusts. That’s up from 45 percent in a similar survey Preqin conducted in early 2009.”

Looking Back:

One year ago, the NAHB reported that builder confidence reached an all-time low. CBIA claimed that the pace of new home sales was continuing on a decreasing trend. The California government ended 20,000 jobs. S&P estimated that commercial real estate defaults would reach 3.5 percent by the end of 2009.

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The Norris Group Real Estate News Roundup 2/4/10

Thursday, February 4th, 2010

Today’s News Synopsis:

Marcus & Millichap annual apartment report places San Diego in second place for stability and possible growth in 2010. Statistics from MDA DataQuick show that 18,621 California homes sold for over 1 million dollars last year. Freddie Mac reports that the rate for 30-year fixed rate mortgages increased to 5.01 percent. PMI predicts that home values are near to reaching the bottom.

In The News:

Sign on San Diego - “Apartment activity is on upswing” (2-4-10)

“San Diego County’s apartment market ranks second nationally after Washington, D.C., in its outlook for stability and possible growth in 2010, according to Marcus & Millichap’s annual apartment report covering 44 metro areas. Two other reports came to the same conclusion: San Diego’s rental market is on the way up.”

DQNews - “Million-dollar home sales plummet in Golden State” (2-4-10)

“A total of 18,621 Golden State homes sold for a million dollars or more last year. That was down 23.8 percent from 24,436 in 2008. In 2007 it was 42,506; in 2006 it was 50,010; and in 2005 it peaked at 54,773. Last year was the lowest sales count since 2002, when 15,703 were sold, according to San Diego-based MDA DataQuick.”

Bloomberg - “Mortgage Rates on 30-Year U.S. Loans Rise to 5.01%” (2-4-10)

“The rate for 30-year fixed U.S. home loans rose to 5.01 percent for the week ended today from 4.98 percent, mortgage finance company Freddie Mac said in a statement. The average 15- year rate was 4.40 percent, according to the McLean, Virginia- based company.”

Housing Wire – “GMAC Loses $5bn on Mounting Mortage Woes” (2-4-10)

“GMAC Financial Services (GOM: 19.8199 -0.85%) posted an expected Q409 net loss of $5bn, as losses related to legacy assets in the company’s mortgage operations continue to mount. The Q409 loss compares to net income of $7.5bn in Q409 and net loss of $747m in Q309. For all of 2009, GMAC reported a net loss of $10.3bn, compared to net income of $1.9bn in 2008.”

Housing Wire – “Home Values Likely Reaching Bottom: PMI” (2-4-10)

“The risk of home prices dropping even lower in the next two years is stabilizing in most Metropolitan Statistical Areas (MSAs), according to the PMI Mortgage Insurance Risk Index. The decline in the risk of house values falling further may indicate a bottoming out of the market.”

Housing Wire – “FHFA Home Index Updates Help Smooth Price Volatility” (2-4-10)

“According to the FHFA, the updates to their purchase-only house price index (HPI) since Q404 show a tendency to dampen house price volatility. Indeed, the last monthly HPI from the agency showed national prices rose 0.7% on a seasonally adjusted basis from October to November. That was after October’s previously reported 0.6% increase was adjusted to 0.4%.”

Housing Wire – “Home Prices Hit First Annual Gain Since 2006: Clear Capital” (2-4-10)

“Home prices in January increased 2.3%, marking the first year-over-year increase in more than three years, according to the Home Data Index (HDI) from Clear Capital, the real estate data provider. In all, prices gained 1.8% on the rolling-quarterly scale into January.”

Inman - “Feds to restrict foreclosure rescue firms” (2-4-10)

“Federal regulators say they intend to follow the lead of many states in banning for-profit companies from collecting advance fees from homeowners in exchange for promises to help them obtain loan modifications or avoid foreclosure. A rule proposed today by the Federal Trade Commission would bar for-profit companies that work with lenders and servicers on behalf of homeowners to modify loans or avoid foreclosure from collecting payment until after such services are provided, and impose other restrictions on their practices.”

Looking Back:

One year ago, the MBA reported that the mortgage application volume was significantly increasing. Pulte Homes, a large U.S. building company, reported 9 months of consistent profit loss. The HOPE lending program had only refinanced 25 loans since it began in October.

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The Norris Group Real Estate News Roundup 1/14/10

Thursday, January 14th, 2010

Today’s News Synopsis:

According to Freddie Mac, the 30-year fixed mortgage rate fell to 5.06 percent this week. 2.8 million properties received a foreclosure notice in 2009. Interactive Mortgage Advisors is selling $130 billion worth of Ginnie Mae’s servicing portfolio. President Obama is proposing a tax on all companies who received bailout money, which would last until all bailout money is paid back.

In The News:

Chicago Tribune – “Rates on 30-year mortgages drop to 5.06 pct, second straight weekly decline” (1-14-10)

“Rates for 30-year home loans edged lower for the second straight week, a report said Thursday, but remained above last month’s record lows. The average rate on a 30-year fixed mortgage was 5.06 percent this week, down from 5.09 percent a week earlier, mortgage company Freddie Mac said.”

Housing Wire – “Foreclosure Filings Hit New Record in 2009: RealtyTrac” (1-14-10)

“In 2009, a record 2.8 million properties received a foreclosure filing, a 21% jump from 2008 and a 120% increase from 2007, according to online marketplace RealtyTrac, which reported the numbers Thursday.”

Housing Wire – “Barack Wants ‘Responsibility Fee’ to Get Bank Bailout Funds Back” (1-14-10)

“President Barack Obama is proposing a ‘Financial Crisis Responsibility Fee’ to tax large financial institutions that received government funds through the Troubled Asset Relief Program (TARP). The news comes in the midst of reports that the government may earn billions of dollars on bailouts. The proposed fee would last for at least 10 years, until all taxpayer dollars are repaid. The fee would apply to the debt of financial institutions with more than $50bn of consolidated assets.”

Housing Wire - “Congressman Proposes 50% Tax on Wall Street Bonuses” (1-14-10)

“Rep. Peter Welch (D-VT) introduced legislation this week to levy new taxes on yearly employee bonuses at financial institutions receiving assistance from the Troubled Asset Relief Program (TARP). Under the bill, bonuses above $50,000 in either cash or stock would be taxed at a rate of 50%.”

Housing Wire – “BofA Permanent HAMP Modifications Jump from 98 to 3,200 in December” (1-14-10)

“The Bank of America (BAC: 16.82 +1.20%) book of permanent loan modifications under the Home Affordable Modification Program (HAMP) grew from 98 mortgages by the end of November 2009 to 3,200 by January 2010, according a company announcement. In the US Treasury Department’s November progress report, BofA completed 98 permanent modifications from the program’s launch in March 2009 through November. Since then, nearly 3,200 borrowers received a completed HAMP modification, and another 12,000 of the BofA borrowers sent their finally modified loan documents under HAMP to be signed and returned by BofA.”

Housing Wire – “Height-of-Boom Subprime Performance Keeps Getting Worse: Moody’s” (1-14-10)

“The basket of mortgage backed securities that the credit rating agency reviewed for its report deal with loans originated during the recent boom years in housing finance. Moody’s is now projecting cumulative losses of 18.7% for 2005 vintage securitizations, 38.4% for 2006 RMBS and 48.1% for 2007 RMBS.”

Housing Wire – “IMA to Sell $130m Ginnie Mae Servicing Portfolio” (1-14-10)

“Interactive Mortgage Advisors (IMA) is facilitating the sale of a $130m Ginnie Mae bulk servicing portfolio on behalf of an undisclosed seller, an independent mortgage banker, according to an offering obtained by HousingWire. The offering covers 937 loans with a combined principal balance of more than $130m. The loans bear a weighted average interest rate of 6.17% and a weighted average service fee of 0.53%.”

Bloomberg - “Issa Proposes Inspector General for Fannie, Freddie Agency” (1-14-10)

“The companies’ regulator, the Federal Housing Finance Agency, has been without an inspector general for at least 17 months since the Federal Housing Finance Board that oversaw the 12 regional Federal Home Loan Banks was merged with Fannie Mae and Freddie Mac’s former overseer to create FHFA. The companies in that time have been taken over by FHFA and given access to what is now an unlimited amount of emergency Treasury Department funding.”

Bloomberg - “Lehman Wins Court Approval to Spend $1.4 Billion to Buy Loans” (1-14-10)

“Lehman Brothers Holdings Inc., the investment bank liquidating in bankruptcy, won a U.S. judge’s approval to spend $1.4 billion to buy loans and mortgages from an insolvent German affiliate, Lehman Brothers Bankhaus.”

Looking Back:

One year ago, the NAR estimated that a homebuyer tax credit could result in 555,000 home sales. Barclay’s Capital claimed that allowing judges to reduce the principal amount on mortgages would not reduce foreclosures. Fannie Mae created a policy allowing people leasing a property to continue occupying their property for a short time after the foreclosure process. PMI Mortgage Insurance estimated that home prices would continue to fall until the 3rd quarter of 2009.

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The Norris Group Real Estate News Roundup 1/12/10

Tuesday, January 12th, 2010

Today’s News Synopsis:

The Federal Reserve made $46.1 billion last year. The MBA predicts that mortgage originations will decline by 39 percent in 2010. According to Integrated Asset Services, national home prices fell by 0.3 percent in November of 2009. FHA reports that foreclosure starts on mortgages from Fannie Mae and Freddie Mac decreased by 15 percent from the second quarter to the third quarter of 2009.

In The News:

Los Angeles Times – “Fed’s reaction to crisis helps deliver record $46.1-billion profit” (1-12-10)

“The Federal Reserve today announced it made a record $46.1-billion profit last year, countering concerns that the central bank has put too much taxpayer money at risk in attempts to stabilize the financial industry.”

Housing Wire – “MBA Expects Mortgage Originations to Fall 40% in 2010″ (1-12-10)

“The mortgage finance industry will likely see a continued slow-down in 2010 as unemployment remains high and home sales slide, the Mortgage Bankers Association (MBA) said Tuesday at a media briefing over the state of the real estate industry. The MBA projected total mortgage origination on residential one- to four-family properties is likely to plummet to $1.28trn in all of 2010, from $2.11trn in all of 2009. The projection marks a 39% decline in total mortgage origination in 2010.”

Housing Wire – “MetLife to Provide Reverse Mortgage Program for ABA Banks” (1-12-10)

“The American Bankers Association (ABA) partnered with MetLife Home Loans to provide member banks a reverse mortgage program. Banks provide reverse mortgages to let homeowners convert their home into cash and can allow older borrowers to supplement social security, meet medical expenses and make home improvements.”

Housing Wire – “Tax Refund Gives KB Homes $100m Q4 Profit” (1-12-10)

“A tax return from profits earned during the housing bubble put KB Home (KBH: 15.72 -4.03%) in positive net profit territory in its fiscal year Q409 that ended Nov. 30. Excluding a $191.7m tax refund, KB Home would have lost $91m in the quarter, but instead posted a $100.7m, or $1.31 per share, net profit. With or without the tax refund, the quarter’s results are better than the $307.3m loss in Q408.”

Housing Wire – “IAS Price Index Dips on Declines in Northeast, Midwest” (1-12-10)

“The Integrated Asset Services (IAS) index of national house shows prices fell 0.3% in November, the collateral valuation and management services firm said. That’s better than the 0.5% decline in prices the index experienced in October and the 0.6% decrease in September.”

Housing Wire – “Sellers Cut Listing Prices on 21% of Homes: Trulia” (1-12-10)

“As of Jan. 1, 2010, sellers cut listing prices on 21% of homes currently on the US market, according to the real estate site, Trulia.com.”

Bloomberg - “U.S. Subpoenas 15 FHA Lenders With High Mortgage Defaults” (1-12-10)

“The U.S. Housing and Urban Development Department said it subpoenaed 15 mortgage companies today to seek out possible fraud in an effort to stem losses on loans insured by the Federal Housing Administration. HUD officials, who oversee the FHA mortgage insurance program, said they haven’t haven’t found any evidence of wrongdoing at the lenders, and were singling out those with the highest default rates.”

Bloomberg - “Life Insurers to Sidestep CMBS Losses, Barclays Says” (1-12-10)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., will sidestep losses on investments tied to commercial mortgages, said Eric Berg, an analyst with Barclays Plc. ”

Bloomberg - “PMI Drops After Goldman Sachs Sell Recommendation” (1-12-10)

“PMI Group Inc., the third-largest U.S. mortgage insurer, fell the most in five months after a Goldman Sachs Group Inc. analyst said he expects more losses as foreclosures increase.”

Inman - “More loans going bad, but more get help” (1-12-10)

“More homeowners fell behind on their payments during the third quarter of 2009, but fewer were funneled into the foreclosure process as loan servicers engaged in more loan workouts, modifications and short sales, according to a new report. Foreclosure starts on loans guaranteed by Fannie Mae and Freddie Mac fell 15 percent from the second quarter to the third quarter, the Federal Housing Finance Agency said in its quarterly Foreclosure Prevention and Refinance Report.”

Orange County Register – “Housing market warming up in south coast?” (1-12-10)

“In a typically slow quarter for real estate, all three south coast cities saw their expected market time speed up a bit, according to a biweekly report by Steven Thomas of Altera Real Estate. Two weeks ago, it would have taken an expected 6.86 months to sell all of Dana Point’s active home stock, which has sped up slightly to an expected 5.16 months.”

Looking Back:

One year ago, some economists estimated that the Modesto, Stockton, Bakersfield, Riverside and Sacramento housing markets would take the longest to recover. President Bush requested the remaining $350 billion of the financial rescue, and handed his economic authority to Barack Obama. Distressed home sales in Orange County decreased by 7.2 percent.

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The Norris Group Real Estate News Roundup 12/22/09

Tuesday, December 22nd, 2009

Today’s News Synopsis:

Research from the Office of Thrift Supervision and the Office of the Comptroller of the Currency show that the number of U.S. homes in foreclosure have passed the 1-million mark. The NAR reports that existing homes sales increased by 7.4 percent in November. According to IHS Global Insight, U.S. home prices increased by 0.2 percent during the 3rd quarter of 2009. Barclay’s predicts that the unemployment rate will reduce to 9.1 percent by the end of 2010.

In The News:

Los Angeles Times – “More prime mortgages default in 3rd quarter” (12-22-09)

“For the first quarter ever, the number of homes in foreclosure with mortgages serviced by U.S. national banks and savings and loans topped the 1-million mark, according to figures released Monday by the Office of Thrift Supervision and the Office of the Comptroller of the Currency. The percentage of prime borrowers whose loans were 60 or more days past due doubled from the July-to-September period a year earlier. And more than half of all homeowners whose payments had been lowered through modification plans defaulted again.”

NAR - “Another Big Gain in Existing-Home Sales as Buyers Respond to Tax Credit” (12-22-09)

“Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate1 of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.”

Housing Wire – “Treasury Spends $4.1bn on Affordable Housing Programs” (12-22-09)

“The amount of American Recovery and Reinvestment Act funds distributed to state agencies to promote affordable housing is running at nearly $4.1bn after the latest round of payouts, the Treasury Department said.”

Press Enterprise – “Local, national retail hiring still sluggish” (12-22-09)

“According to an analysis of Labor Department data by the Chicago-based outplacement firm Challenger, Gray & Christmas, the U.S. retail sector grew by a net 321,300 jobs in November, for an increase of 37 percent from November 2008. In the Inland region, the California Employment Development Department reported last week, the net gain of 550 retail jobs in November marked a 3.6 percent bump from the prior month, but the total retail workforce of 157,800 was actually down 5.5 percent from a year ago.”

Housing Wire – “Housing Prices End Two-Year Skid, says IHS Global Insight” (12-22-09)

“The two-year slide in US housing prices ended in Q309 and increased 0.2% over the previous quarter, according to a quarterly report form IHS Global Insight, a provider of economic and financial analysis. Although prices increased on a national average, 161 of the top 330 metropolitan areas had declines in prices, but it’s still an improvement from Q408 when prices dropped in 317 metro areas.”

Housing Wire – “FHFA Home Price Index Up 0.6% in October” (12-22-09)

“US housing prices increased 0.6% on a seasonally adjusted basis from September to October, according to the Federal Housing Finance Agency’s (FHFA) monthly house price index. The increase comes after the FHFA adjusted the index’s August to September reading from no change to a 0.4% decline. For the 12 months ending in October, prices fell 1.9%. The index is 10.8% below its April 2007 peak.”

Housing Wire – “BarCap: Commercial Real Estate Demand to Start Back This Summer” (12-22-09)

“according to Barclay’s report on the 2010 outlook for commercial mortgage-backed securities (CMBS), the labor market is showing encouraging signs in recent months, which is the best indication of growing demand in commercial space. Barclay’s analysts forecast “sustained positive job growth” beginning in Q110 and an addition of 2.3m jobs by the end of the year. This translates to a 9.1% unemployment rate at the end of 2010, which is not yet healthy but a sign of recovery.”

Housing Wire – “Securitization Systematic Risk to Lessen in 2010, Barclays Says” (12-22-09)

“Due to the ‘herculean’ and ‘unprecedented’ efforts of myriad Fed bailouts, Barclays Capital is reporting that, going into the New Year, the systemic risk posed by the securitized markets will be much lower, although the agency mortgage-backed securities (MBS) market remains a concern.”

Bloomberg - “Mortgage-Bond Yields Jump to 4-Month High, Boosting Loan Rates” (12-22-09)

“Yields on Fannie Mae and Freddie Mac mortgage securities climbed to the highest in four months, signaling interest rates on new home loans may extend a rebound from record lows this month and blunt a housing recovery.”

Looking Back:

One year ago, policy makers were considering the abolition of Fannie Mae and Freddie Mac. Foresight Analytics estimated that $530 billion in commercial mortgages were due for refinancing over the next three years. CIRB reported that the number of construction permits being pulled increased by 8 percent from the previous month. The pace of existing home sales decreased by 10.6 percent from 2007 to 2008.

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The Norris Group Real Estate News Roundup 12/11/09

Friday, December 11th, 2009

Today’s News Synopsis:

Mark Greene of FICO forecasts that credit-card and mortgage defaults will increase during the next six months. Former director of the FHFA James B. Lockhart III, claims that the housing downturn may not be finished. Statistics from both Moody’s Investors Service and Fitch Ratings show that the default rate for CMBS increased during November.

In The News:

Mortgage Bankers Association – “MBA Comment on Passage of Regulatory Reform” (12-11-09)

“Regrettably, the House moved forward and passed a bill that could adversely impact borrowers and lenders alike. By not creating a uniform, national regulatory standard, the bill continues the conflicting and confusing patchwork of state and local laws that result in increased costs for borrowers.”

Bloomberg - “Mortgage ‘Cram-Down’ Amendment Fails in U.S. House” (12-11-09)

“The U.S. House rejected a mortgage ‘cram-down’ amendment that would have given federal judges the power to lengthen mortgage terms, cut interest rates and reduce loan balances for homeowners in bankruptcy court. Lawmakers voted 241-188 today against the amendment, which was to be part of broader legislation reining in excessive risk taking on Wall Street. All but four of the Republicans who voted opposed the amendment, pulling with them 71 Democrats to defeat the measure.”

Bloomberg - “Defaults to Rise as Credit Issues Remain, Greene Says” (12-11-09)

“The next six months will bring more credit-card and mortgage defaults, said Mark Greene, chief executive officer of FICO, maker of the credit-scoring formula most widely used by U.S. lenders.”

Bloomberg - “Lockhart Says Housing May Take ‘Another Leg Down’” (12-11-09)

“James B. Lockhart III, vice chairman of WL Ross & Co. and the former director of the Federal Housing Finance Agency, said the U.S. housing decline may not be over. Lockhart said at a conference in New York that he’s concerned there may be ‘another leg down’ because of the pace of foreclosures. Foreclosures will ’spike’ unless the Obama administration’s programs to spur home loan modifications do more to reduce homeowners’ debts, he said.”

Housing Wire – “CMBS Delinquency Jumps Most in November: Moody’s” (12-11-09)

“The delinquency rate among US commercial mortgage-backed securities (CMBS) jumped in November, according to separate surveys by Moody’s Investors Service and Fitch Ratings. Moody’s saw a 46bps increase over last month’s delinquency rate — the largest monthly increase of the current downturn — bringing CMBS conduit and fusion loans to 4.47% delinquent.”

Inman - “Feds: BofA lagging in loan mods” (12-11-09)

“Bank of America — which has more mortgages eligible for the Home Affordable Modification Program (HAMP) than any other participating loan servicer — continues to lag behind the industry average in modifying troubled borrowers’ loans, according to the latest report from the Treasury Department. Through the end of November, Bank of America had made trial or permanent modifications on only 14 percent of the estimated 1 million HAMP-eligible loans it’s servicing that were delinquent by 60 days or more, the Treasury Department said”

Realty Times – “Short Sales May Rise Due to New Government Incentives” (12-11-09)

“‘The push right now is for servicers to avoid foreclosure and the push is coming not only from The Obama administration and the Treasury but also from the owners of the loans such as Fannie Mae and Freddie Mac. And the focus right now is on short sales. So, I think in 2010, you’re going to see a lot more short sales and hopefully reduced foreclosures,’ says Travis Hamel Olsen, chief operating officer of Loan Resolution Corporation.”

In The News:

One year ago, Bank of America announced plans to cut 30,000 to 35,000 jobs.  U.S. Regulator James Lockhart claimed that mortgage rates would fall below 4 percent. An estimated forecast from UCLA showed that home-price declines since 2006 had amounted to $4.5 trillion.

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The Norris Group Real Estate News Roundup 11/24/09

Tuesday, November 24th, 2009

Today’s News Synopsis:

The CIRB reports that homebuilders pulled 6 percent less permits from September. American banks decreased lending by 2.8 percent in the third quarter. The FOMC suspects that the economy will take 5 years to return to an acceptable rate of growth.  According to First American CoreLogic, 23 percent of all US homes are less valuable than the mortgages owed on them.

In The News:

CBIA - “California Housing Starts Continue Decline in October, CBIA Announces” (11-24-09)

“According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,815 total housing units in October, down 6 percent from September, and down 33 percent from October 2008. Permits for single-family homes totaled 2,017, down 9 percent from the previous month and down 14 percent from same period last year, while multifamily permits totaled 798, up 5 percent from September but down 57 percent from a year ago.”

Los Angeles Times – “Index shows moderate gain in home prices in September” (11-24-09)

“Home prices in 20 U.S. cities ticked up modestly in September, marking the fifth consecutive month of improvement, according to a closely watched national index released this morning. The Standard & Poor’s/Case-Shiller index increased 0.3% from the prior month on a seasonally adjusted basis, after a 1.1% rise in August. The index fell 9.4% from September 2008 and marked the narrowest year-over-year decline since the end of 2007.”

The Washington Post – “Decline in lending is largest since 1984″ (11-24-09)

“Lending by American banks plunged by 2.8 percent in the third quarter, the largest drop since at least 1984 and the fifth consecutive quarter in which banks have reduced lending, the Federal Deposit Insurance Corp. reported Tuesday morning.”

Housing Wire - “BarCap Acquires Commercial Real Estate Holdings Firm” (11-24-09)

“Barclays Capital, in a joint venture with Goff Capital, acquired Crescent Real Estate Equities Limited Partnership, or Crescent, from Morgan Stanley Real Estate Funding II.”

Housing Wire – “FOMC Sees Sustained Growth Five Years Away” (11-24-09)

“It will be at least five years before the economy experiences a sustainable rate of growth and levels of unemployment and inflation acceptable to the Federal Reserve, the Federal Open Market Committee said in its Nov. 4 meeting.”

Housing Wire – “FHFA Quarterly HPI Up Slightly in Q309″ (11-24-09)

“US house prices inched slightly higher in Q309 compared to Q209 in the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI). The HPI uses sales price information from mortgages acquired by the government-sponsored enterprises (GSEs), which increased 0.2% quarter-over-quarter. Year-over-year, the purchase-only HPI decreased 3.8% in the third quarter.”

Housing Wire – “Negative Equity, Not Job Loss, Primary Driver of Defaults” (11-24-09)

“if coming defaults are caused by unemployment, then the relevant response, says Goodman, would be to subsidize mortgage payments. On the other hand, if negative equity triggers defaults, then principal reduction must receive a higher priority in modification program waterfalls.”

Bloomberg - “Almost One in Four U.S. Homeowners Are ‘Underwater’” (11-24-09)

“The number of U.S. homes worth less than the debt owed on them reached almost 10.7 million, or 23 percent of all mortgaged properties, at the end of the third quarter, according to a report from First American CoreLogic.”

Orange County Register – “The biggest home seller mistakes” (11-24-09)

“Learn about your local market. What is selling and how long is it taking to sell? Find out what the trends are in your neighborhood. Is the market rising, falling or flat? How are local inventory levels?”

Looking Back:

One year ago, existing home sales decreased by 3.1 percent in October. The U.S. government announced a plan to spend 7.7 trillion dollars to ease credit problems. Downey Financial said it would file for bankruptcy.

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The Norris Group Real Estate News Roundup 11/12/09

Thursday, November 12th, 2009

Today’s News Synopsis:

According to RealtyTrac, foreclosure filings were found in approximately one out of every 385 U.S. homes. The MBA reports that mortgage loan application volume increased by 3.2 percent, on a seasonally adjusted basis, from one week earlier. The jumbo loan limit that was set to expire at the end of this year has been extended through 2010.

In The News:

DSNews - “Foreclosure Activity Slows for Third Straight Month: RealtyTrac” (11-12-09)

“According to the company’s October 2009 U.S. Foreclosure Market Report, foreclosure filings – including default notices, scheduled foreclosure auctions, and bank repossessions – were reported on 332,292 U.S. properties during the month. That number means one in every 385 homes received a filing.”

Mortgage Bankers Association – “Mortgage Refinance Applications Increase, Purchase Applications at Nine Year Low in Latest MBA Weekly Survey” (11-12-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November 6, 2009. The Market Composite Index, a measure of mortgage loan application volume, increased 3.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2.8 percent compared with the previous week.”

Housing Wire – “Foreclosures Continue to Drop Month on Month: RealtyTrac” (11-12-09)

“Foreclosure filings decreased 3% in October but remains 19% higher from a year ago, according to a report from RealtyTrac. RealtyTrac is an online market place of foreclosure properties, holding more than 1.5m listings. During October, 332,292 properties received a foreclosure filing, or one in every 385 homes. Foreclosures, however, decreased for the third consecutive month.”

Housing Wire – “FDIC Extends ‘Safe Harbor’ for Transfer of New, Existing ABS Assets” (11-12-09)

“The Federal Deposit Insurance Corp. (FDIC) on Thursday approved an interim rule providing a “safe harbor” for the transfer of assets related to certain types of asset-backed securities (ABS) from insured depositary institutions. The transitional safe harbor applies to all securitizations issued before March 31, 2010, shielding the assets from seizure by the FDIC in instances where the insured depositary institutions fail.”

Housing Wire – “Temporary Jumbo Loan Limits Extended Through 2010″ (11-12-09)

“The temporary increased maximum loan limits originally set to expire at the end of the year will remain in place through 2010, according to the Federal Housing Finance Agency (FHFA).”

Housing Wire – “Despite Low Rates, Purchase Applications Reach 2000 Low” (11-12-09)

“Mortgage rates hovered slightly above record lows, but as the debate on the extension of the first-time homebuyer tax credit raged, borrowers stayed away from the application process last week. The average rate of the 30-year fixed-rate mortgage (FRM) was 4.91% with a 0.7 point for the week ending Nov. 12, according to Freddie Mac’s (FRE: 1.16 -1.69%) weekly survey of mortgage rates.”

Bloomberg - “FHA Reserve Ratio Falls to 0.53%, Lowest in History” (11-12-09)

“The net capital ratio, or reserves after accounting for projected losses, fell to 0.53 percent in the year ended in September, from 3 percent in fiscal 2008 and 6.4 percent in 2007, according to an sent today. While FHA said the fund ‘has good prospects,’ it is changing its risk models to account for the possibility of the ratio falling below zero.”

Orange County Register – “O.C. housing gets ‘riskiest’ ranking” (11-12-09)

“Risk? 99.9% chance of home prices falling in next two years. That score tied Orange County with eight other markets for the the crown of ‘nation’s riskiest!’”

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