According to the latest report from the U.S. Commerce Department, sales of pending existing homes increased while at the same time sales of new homes decreased all in the month of December.  According to Housing Wire, commercial and multifamily loan origination increased 13% in the fourth quarter of 2011.  NAHB reported the number of housing markets showing improvement has increased to 100.

In The News:

Bloomberg – “Foreclosure Deal Deadline Arrives” (2-5-12)

“U.S. states that balked at liability releases in a proposed $25 billion nationwide settlement over bank foreclosure practices must decide today whether its mortgage relief and reforms are worth legal claims they’ll lose.”

Housing Wire – “Multifamily mortgage originations jump 13%” (2-6-12)

“Originations of commercial and multifamily loans grew 13% year-over-year in the fourth quarter of 2011, while still declining 7% from the third quarter, an industry trade group said Monday.”

Realty Times – “Real Estate Outlook: New Home Sales and Prices Decline” (2-6-12)

“Pending existing-home sales may be up across the nation, but new home sales fell for the first the first time in three months in December. These latest figures come from the U.S. Commerce Department.”

Bloomberg – “Bernanke: Fed will protect U.S. economy from Europe” (2-6-12)

“The U.S. foreclosure crisis has risen to new heights.  Atlanta’s 55-story Bank of America Plaza, the tallest tower in the Southeast, is set to be sold at an open outcry auction on the steps of the Fulton County Courthouse tomorrow after landlord BentleyForbes missed mortgage payments.”

Mortgage Bankers Association – “MBA Forecasts $230 Billion of Commercial/Multifamily Mortgage Originations in 2012; $2.4 Trillion of Commercial/Multifamily Mortgage Debt Outstanding” (2-6-12)

“In its inaugural forecast of the commercial/multifamily real estate finance markets, the Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will hit $230 billion in 2012, an increase of 17 percent from 2011 volumes, and continue to rise to $290 billion in 2015.”

NAHB – “List of Improving Housing Markets Expands to Nearly 100″ (2-6-12)

“The list of housing markets showing measurable improvement expanded by 29 metros in February to include a total of 98 entries on the National Association of Home Builders/First American Improving Markets Index (IMI), released today. Thirty-six states are now represented by at least one market on the list.”

Los Angeles Times – “Lawmakers push Fannie, Freddie to write-down mortgage principle” (2-6-12)

“Rep. Barney Frank and two other House Financial Services Committee Democrats on Monday pressed Edward DeMarco, the regulator of seized housing finance giants Fannie Mae and Freddie Mac, to write-down the principal on mortgages of underwater homes.”

Housing Wire – “Capital Economics: REO to rental program possibly ‘best housing fix so far’” (2-6-12)

“In a statement released Monday, Capital Economics called the REO to rental program possibly the “best housing fix so far,” calling it “possibly more significant” than President Obama’s refinancing proposals announced late last month.”

Los Angeles Times – “Consumer Confidential: Mortgage deal, Redbox service, Clint rules” (2-6-12)

“Today’s the day for state attorneys general to decide whether they want a piece of a multibillion-dollar mortgage settlement with the nation’s largest banks.”

Inman – “Texas regulator issues cease and desist order against flat-fee FSBO site” (2-6-12)

“A Texas real estate regulator is investigating a flat-fee, for-sale-by-owner site for alleged unlicensed brokerage activities in the state and has issued a cease and desist order against the company.”

Hard Money Loan Closed

San Bernardino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $150,000 on a 3 bedroom, 2 bathroom home appraised for $250,000.

California Real Estate Investor Events:

The Norris Group will be holding their monthly REO Boot Camp, February 14, 2012.

The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Sources:
Freddie delinquencies tick up for first time in 10 months
Increased mortgage delinquencies could adversely affect RMBS: S&P
July Pending Home Sales
Ben Bernanke Provides No Relief
C.A.R sends letters to top lenders re: short sales
Gov. Jerry Brown proposes job creation plan for California

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big events. Bloomberg reported Ben Bernanke has still not provided any good news for the economy.  Zillow recenlty estimated that the prices of homes declined over 4% last June.  Delinquencies are still on the rise, however, foreclosures and distressed sales are decreasing.  Banks are expeted to do more short sales with houses as these are expected to sell more quickly.

In The News:

Housing Wire – “GDP growth revised down to 1% for 2Q” (8-26-11)

“Gross domestic product — or output of all goods and services — grew at an annual rate of 1% in the second quarter, compared to growth of 0.4% in the first quarter, the Commerce Department said Friday.”

Realty Times - “Foreclosures Slow but Delinquencies Rise” (8-26-11)

“A new report indicates that the number of delinquent mortgage borrowers climbed in the second quarter. That’s people who have missed at least one payment, according to the Mortgage Bankers Association (MBA).”

DS News - “California Distressed Sales Decline, Realtors Push for Streamlined Shorts” (8-26-11)

“California’s pending home sales dipped in July, as did the share of distressed property sales, according to a report released by the state’s Realtor group this week.”

Bloomberg - “New York Buildings Face Storm Damage as Property Managers Plan for Irene” (8-26-11)

“Hurricane Irene may cause seriousdamage to some New York City buildings as it threatens to bring surging floodwaters and strong winds that may spur flying debris, property managers said as they prepared for the storm.”

Housing Wire – “August consumer sentiment drops to 3-year low” (8-26-11)

“Consumer sentiment in the U.S. plunged to the lowest level in three years and to one of the lowest level recorded by the Thomson Reuters/University of Michigan survey.”

Realty Times - “Mortgage Rates Follow Bond Yields Higher for the Week” (8-26-11)

“Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates moving higher from the previous week’s record lows as Treasury bond yields moved higher and other housing data showed improvement. However, the 5-year ARM did decline to 3.07 percent thereby setting a new all-time record low.

Realtor Magazine – “Banks Agree to More Short Sales” (8-26-11)

“Banks are agreeing to more short sale transactions, and short sales are taking less time to sell, which is helping to clear large inventories of distressed properties more efficiently, says James J. Saccacio, RealtyTrac CEO, in releasing new housing data this week.”

Housing Wire - “Zillow estimates 4.3% decline in home prices” (8-26-11)

“Standard & Poor’s is likely to report a 4.3% decline in June home prices year-over-year and a 1.2% increase from the previous month when it releases its June Case-Shiller Home Price Indices study next Tuesday, Zillow said Friday.”

Los Angeles Times - “Corporate profits increase as GDP remains sluggish” (8-26-11)

“The nation’s gross domestic product may be growing at just a crawl, but corporations aren’t doing so badly in this economy, according to data released from the Bureau of Economic Analysis.  Corporate profits increased in the second quarter, as did the amount of cash businesses had available for investments, as taxes decreased.”

DS News - “Radar Logic to Propose Plan to Address Government REOs” (8-26-11)

“Radar Logic plans to publish a response to the government’s proposal to sell pools of foreclosed homes to investors to rent.”

Bloomberg – “Bernanke Doesn’t Signal More Stimulus” (8-26-11)

“Federal Reserve Chairman Ben S. Bernanke said the central bank still has tools to stimulate a recovery that has been weaker than forecast while sticking to his view that growth will pick up.”

Looking Back:

The MBA’s second quarter survey showed the delinquency rate for mortgage loans on residential properties dropped to 9.85 percent. Freddie Mac reported that interest rates dropped AGAIN to 4.36%. According to CoreLogic, 23 percent of residential homes with mortgages were in negative equity at the end of the 2nd quarter of 2010. Barclays Capital claims existing home sales decreased 30% in July 2010.

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.

The Mortgage Bankers Association reported mortgage applications are at their lowest level in 15 years.  Members of Vintage East Condominium Association sued JPMorgan Chase & Co in order to take back a property they said JP Morgan was taking too long to foreclose on.  Rents are still on the rise as they continued to increase in July for the 11th straight month.

In The News:

DS News - “Prices of Homes Backing GSE Mortgages Fell 0.6% in Second Quarter” (8-24-11)

“Home prices in the U.S. were 0.6 percent lower in the second quarter than in the first quarter of 2011, according to the Federal Housing Finance Agency (FHFA).”

Bloomberg - “Homeowner Associations in Need of Cash Sue to Force Foreclosures” (8-24-11)

“Members of the Vintage East Condominium Association in Miami Beach got tired of waiting for JPMorgan Chase & Co. (JPM) to foreclose on unit 9, so they sued the bank in February to take control of the property.”

Housing Wire - “Moody’s: CMBS delinquencies up to 9.24% in July” (8-24-11)

“The delinquency rate on home loans within commercial mortgage-backed securities rose 22 basis points to 9.24% in July, according to Moody’s Investors Service.  The rate stayed higher than 9% each month this year. For July 2010, the
delinquency rate was 7.89%.”

Mortgage Bankers Association - “Mortgage Applications Decrease with Purchase Index at Lowest Level Since 1996″ (8-24-11)

“Mortgage applications decreased 2.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 19, 2011.”

O.C. Register - “SoCal rents up 11th straight month” (8-24-11)

“The landlord-vs.-renter battle over price stayed on the owners’ side last month as SoCal rents rose for the 11th consecutive month in July. That’s according to a measurement inside the latest regional Consumer Price Index.  According the the Bureau of Labor Statistics, rents in Southern California rose at an annual rate of 1.4% in July.”

Rismedia - “Housing Affordability Hovers Near Record Level as Some Markets Begin to Stabilize” (8-24-11)

“Nationwide housing affordability during the second quarter of 2011 hovered for the 10th consecutive quarter near its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released recently.”

San Francisco Chronicle - “New-home sales fell for 3rd straight month in July” (8-24-11)

“Sales of new homes fell for the third straight month in July, a sign that  housing remains a drag on the economy. If the current pace continues, 2011 would  be the worst year for new-home sales in decades.”

CNN Money - “Foreclosure Settlement: Spat among the states” (8-24-11)

“A deal to help victims of improper foreclosures has been slow going, in large part because of infighting among state attorneys general over giving banks a free pass from future lawsuits.”

DS News - “Mortgage Contracting Services Appoints Assistant Vice President” (8-24-11)

“Mortgage Contracting Services LLC (MCS), a nationwide provider of property preservation, inspections, and REO property maintenance, announced Wednesday the addition of Anthony Calabrese as assistant vice president.”

San Francisco Chronicle - “U.S. Banks Facing Main Street Squeeze as Economy Saps Earnings” (8-24-11)

“Two U.S. Treasury secretaries and Federal Reserve Chairman Ben S. Bernanke  provided capital and cheap loans to banks during the last three years to help  fuel an economic revival. It hasn’t worked out.”

Looking Back:

Existing home sales experienced a dramatic decrease of 27.2 percent in July 2010, according to the NAR. Housing production decreased by 10 percent in June 2010.  CAR reported California home sales decreased 20.8 percent in July 2010. Statistics from the California Employment Development Department showed that 7,100 jobs were lost from July 2009.

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.

Bloomberg reported that Goldman Sachs will possibly be facing a lawsuit from three big organizations, Fannie Mae, Freddie Mac, and AIG, regarding securities related to mortgages.  The recent Housing Scorecard for July showed a slight improvement in home prices but continued negativity for foreclosures and distressed homes.  Obama received a request from Realogy Corp. to hold a White House Summit on housing.   

In The News:

Housing Wire - “Rise in REO value cuts Freddie Mac holding expenses by 90%” (8-9-11)

“Freddie Mac reported $27 million in expenses for maintaining and reselling houses repossessed through foreclosure in the second quarter, a mere fraction of the $257 million the previous period.”

DS News - “The Future of Mortgage Interest Deduction Remains Unstable” (8-9-11)

“After much hype about the possibility of an elimination of the mortgage interest deduction (MID) as part of the debt ceiling agreement, the August 2 agreement included no such provision.  However, the new law does call for major deficit reductions – $2.4 trillion total – to go into place over the next several years.”

Bloomberg - “Goldman Sachs Says AIG, Fannie, Freddie Threatened to Sue Over Mortgages” (8-9-11)

“Goldman Sachs Group Inc. (GS) said American International Group Inc. (AIG), Fannie Mae and Freddie Mac are among companies that have threatened to take legal action
against the firm over mortgage-related securities.”

Rismedia - “July Housing Scorecard Shows Home Improvement” (8-9-11)

“U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the July edition of the Obama Administration’s Housing Scorecard—a comprehensive report on the nation’s housing market.  The latest housing data offer continued mixed signals as home prices improved slightly but showed continued strain from foreclosures and distressed homes.”

Inman - “Realogy calls for White House housing summit” (8-9-11)

“Realogy Corp. has sent a formal request to President Obama calling for a ‘White House Summit on Housing’.”

Los Angeles Times - “Feds sue Goldman Sachs over credit union losses” (8-9-11)

“Federal regulators have filed the fourth in a series of about 10 planned lawsuits against banks that sold questionable mortgage-related securities to big credit unions that subsequently failed.”

Housing Wire – “CitiMortgage rebuilds executive team for global push” (8-9-11)

“CitiMortgage, the home loan origination and servicing division of Citigroup (C: 31.82 +13.85%), restructured its lineup of executives and is planning how to spread its Global Mortgage Community
to various regions beyond the U.S.”

CNN Money - “Housing recovery slips out of sight” (8-9-11)

“Any glimmer of hope that the housing market will stage a recovery in the upcoming months has vanished, thanks to the recent spate of bad economic news that has been making headlines over the past several weeks.”

NAHB - “NAHB Announced Call for Entries for the 2012 National Sales & Marketing Awards” (8-9-11)

“New home sales and marketing professionals are encouraged to submit entries for the 2012 National Sales and Marketing Awards, sponsored by the National Association of Home Builders (NAHB)
National Sales and Marketing Council.”

Rismedia - “Second Quarter Commercial/Multifamily Mortgage Lending Up 107 Percent” (8-9-11)

“Second quarter 2011 commercial and multifamily mortgage loan originations were 107 percent higher than during the same period last year and 52 percent higher than the revised figures for the first quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.”

Looking Back:

The percentage of American single-family homes with mortgages in negative equity decreased by 1.8% from the first to second quarter of 2010.  Freddie Mac requested $1.8 billion in federal aid after a $6 billion loss in the second quarter of 2010. Freddie Mac’s single-family inventory rose by 84.2% and its multifamily inventory doubled from 2009. PIMCO feared the U.S. would be entering a period of deflation, and JPMorgan Chase expressed concerns that our financial system may crash in 2015.

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.

In the wake of the U.S. credit rating being dropped, stocks decreased and the Dow is now below 11,000, the lowest it has been since November.  Bloomberg reported Bank of America was sued by AIG in regards to false information regarding mortgage-bond investments.  Inman reported rentals are increasing while homeownership is decreasing.   

In The News:

CNN Money - “Stocks Plunge Following S&P Downgrade” (8-8-11)

“U.S. stocks plunged deep into the red on Monday as fearful investors faced the news that the United States had lost its coveted “AAA” credit rating.”

Mortgage Bankers Association - “MBA Hires Brian Hartman to be Associate Vice President of Marketing” (8-8-11)

“David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), today announced the appointment of Brian Hartman as Associate Vice President of Marketing. In this role, he will help develop, execute and manage MBA’s direct marketing programs.’“

Bloomberg - “AIG Plans to Sue Bank of America Over Losses Tied to Mortgage Underwriting” (8-8-11)

“American International Group Inc. (AIG), the bailed-out insurer, sued Bank of America Corp. over $10 billion in losses on mortgage-bond investments. The bank dropped 16.5 percent in New York trading.”

DS News - “Servicers’ Policies on Foreclosures in Bankruptcy Courts Being Examined” (8-8-11)

“Eleven mortgage servicers recently received letters from two senators inquiring about their policies regarding foreclosures in bankruptcy courts.”

Inman - “Demand for real estate rentals rises, homeownership rate drops” (8-8-11)

“In the teeter-tottering relationship between rental housing and homeownership, demand for rentals stayed up in the second quarter of 2011 while homeownership remained static, according to residential vacancy and homeownership data released by the U.S. Census Bureau at the end of July.”

Housing Wire – “Freddie Mac narrows loss in 2Q” (8-8-11)

“Freddie Mac swung to a $2.1 billion loss in the second quarter following a profit in the first quarter.  But Freddie narrowed its loss from the $4.7 billion loss it recorded in the year-ago period.”

Realty Times - “Real Estate Outlook: Market Continues to Struggle” (8-8-11)

“Will a change to the mortgage interest deduction threaten a housing market recovery? This is the message from the National Association of Realtors® (NAR). “As the leading advocate for housing and homeownership, NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy,” says NAR Chief Economist Lawrence Yun. “The MID facilitates home ownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working middle-class families”.”

Bloomberg - “Bulk Buying Would Ease Home Crisis, Morgan Stanley Analysts Say” (8-8-11)

“Encouraging investors to buy foreclosed homes in bulk would help shrink the U.S. housing surplus, stabilize property prices and provide affordable rentals, Morgan Stanley (MS) housing analysts said in a report today.”

Rismedia - “June Prices Still in Red; Northeast Booms” (8-8-11)

“National average home prices in June were still 7.9 percent below a year ago, which was the height of the boomlet spawned by the tax credit. However, prices are still up 4.1 percent over the first quarter.”

Housing Wire – “Mortgage credit growth drops 4% over last year” (8-8-11)

“Credit conditions across the United States remained mixed in July, with growth in new mortgage credit slipping 4% in July compared to year-ago levels, according to a new report from CreditForecast.”

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.

The prices of homes increased in April for the first time in eight months.  However, for the whole year prices actually decreased 4% in 20 cities from April 2010 to April 2011.  DS News reported that reports of mortgage fraud increased 31% in the first quarter.  The passage of Senate Bill 510 is being pushed, which would increase the amount of legal work required for appointing a branch manager for a large real estate company.

In The News:

The Wall Street Journal - “Home Prices Notch Spring Bounce” (6-28-11)

“U.S. home prices rose in April from a month earlier, the first increase in eight months, though much of the improvement reflected the start of the spring-summer home buying season, according to the S&P Case-Shiller home-price indexes.”

Bloomberg - “Home Prices in 20 U.S. Cities Fell 4% in April” (6-28-11)

“Home prices decreased in the year ended April by the most in 17 months, showing the housing market remains an obstacle for the U.S. recovery.”

DS News - “One in 10 NYC Mortgages Seriously Delinquent” (6-28-11)

“One in 10 residential mortgages in New York City is seriously delinquent – meaning over 90 days delinquent or in foreclosure – according to an analysis of the regional housing market released this week by the Federal Reserve Bank of New York.”

RisMedia - “NAHB Study Finds Loan Limit Declines a Discouraging Prospect for Recovering Housing Market” (6-28-11)

“A drop in some mortgage loan limits for the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and the Federal Housing Administration scheduled to occur on Oct. 1 will reduce housing demand and place downward pressure on home prices in major housing markets, according to a new study from the Economics and Housing Policy Group at the National Association of Home Builders (NAHB).”

DS News - “Mortgage Fraud SARs Jump 31% as Investors Demand Loan Buybacks” (6-28-11)

“A total of 25,485 suspicious activity reports (SARs) involving alleged mortgage fraud were submitted to the Financial Crimes Enforcement Network (FinCEN) during the first quarter of this year.”

Housing Wire – “QE3 advocate Paul Krugman sits down with HousingWire” (6-28-11)

“Princeton economist and New York Times columnist Paul Krugman recently advocated for a third round of economic stimulus.”

Realty Times - “California Bill Would Increase the Accountability of Branch Office Managers” (6-28-11)

“There is currently a bill working its way through the California legislature that, if passed, will significantly increase the legal liability of individuals who are branch office managers for large real estate companies.”

CNN Money - “Fed set to buy $300B more Treasuries” (6-28-11)

“QE2 is just about done. But the Federal Reserve will still be buying massive amounts of long-term Treasuries.   In fact, the Fed’s purchases over the next year will likely be at least $300 billion. That’s half the size of QE2 — even if QE3 never takes place.”

RisMedia - “New HUD Study: $26 Billion in Major Repairs Needed in Public Housing” (6-28-11)

“The U.S. Department of Housing and Urban Development recently released a study that finds the nation’s 1.2 million public housing units need an estimated $25.6 billion for large scale repairs.”

Housing Wire - “Fannie Mae to retroactively charge mortgage servicers for foreclosure delays” (6-28-11)

“Fannie Mae will retroactively charge mortgage servicers for failing to process severely aged loans, according to state timelines.”

Looking Back:

Statistics from the Federal Reserve showed the median borrower who ‘strategically’ defaulted didn’t walk away from the mortgage until the amount owed exceeded the value of the home by 62%. McGraw-Hill Construction reported new construction starts increased 3% in April 2010. According to CoreLogic, more than 11 million borrowers owed more on their mortgage than it was worth. Experian statistics showed that 19 percent of all defaults in 2009 were strategic.

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.

Sources:
Shadow Inventory Slowly Fades
Sales of New U.S. Homes Decreased in May for First Time in Three Months
Distressed Sales Drive CRE Prices for Fifth Month: Moody’s
HUD, NeighborWorks Roll Out Emergency for Unemployed
Coalition for Sensible Housing Policy Joins 326 Members of U.S. Congress Calling for Changes to Proposed QRM Regulation
Press Conference on Sensible Housing Policy Part Two
Your Facebook Status: Foreclosed

Today’s News Synopsis:

In this week’s video, Aaron Norris of The Norris Group gives the news of the week in the world of real estate and other big events.  Housing Wire reported that the Gross Domestic Product increased at a yearly rate of 1.9% in the first quarter.  Debate continues over what qualifies as a Qualified Residential Mortgage, DS News reported.  Freddie Mac reported that there has not been much change in mortgage rates. 

In The News:

Housing Wire - “First-quarter GDP growth revised up to 1.9%” (6-24-11)

“Real gross domestic product grew at an annual rate of 1.9% in the first quarter, based on a third estimate released by the Commerce Department’s Commerce Department Friday.”

NAHB - “NAHB Study Finds Loan Limit Declines a Discouraging Prospect for Recovering Housing Market” (6-24-11)

“A drop in some mortgage loan limits for the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and the Federal Housing Administration scheduled to occur on Oct. 1 will reduce housing demand and place downward pressure on home prices in major housing markets, according to a new study from the Economics and Housing Policy Group at the National Association of Home Builders (NAHB).”

DS News - “Industry, Lawmakers Faceoff with Regulators on QRM’s Default Impact” (6-24-11)

“The debate over what constitutes a “Qualified Residential Mortgage” (QRM) is heating up, with a pivotal argument centered around whether or not the proposed QRM stipulations will actually lower the risk of default.”

Housing Wire - “Freddie Mac’s mortgage portfolio falls 3.5% in May” (6-24-11)

“Freddie Mac’s mortgage portfolio decreased at an annual rate of 3.5% in May as government officials continue to discuss how to transition to a mortgage market dominated by private capital.”

Bloomberg - “U.S. Seeks Life Sentence for Farkas” (6-24-11)

“Lee Farkas, the ex-chairman of Taylor, Bean & Whitaker Mortgage Corp., should be sentenced to life in prison for leading a $3 billion fraud involving fake mortgage assets, U.S. prosecutors told a judge in Virginia.”

The Wall Street Journal - “Mortgage Rates Are Little Changed” (6-24-11)

“Mortgage rates changed little for a second straight week, according to the latest survey from Freddie Mac.  Mortgage rates generally track Treasury yields, which move inversely to Treasury prices. Rates have slumped for months as yields on Treasurys slid amid economic uncertainty.”

San Francisco Chronicle - “New-home sales fall for first time in three months” (6-24-11)

“Purchases of new U.S. houses fell in May for the first time in three months, showing the industry is struggling to gain momentum.”

CNN Money - “The New American dream home: Prices in 11 cities” (6-24-11)

“The dream has changed. Chastened by the housing collapse, middle-class Americans want a different kind of home these days. The McMansion, with its eight bedrooms, five baths and 10,000 square-feet, is out. A more sensible housing solution is in.”

Looking Back:

According to the CIRB, building permits were pulled for 3,088 housing units in May 2010. Statistics from Freddie Mac showed the 30-year fixed-rate mortgage averaged 4.69% the previous week. Several large banks, such as JP Morgan, hired thousands of mortgage officers in preparation to make more loans. TIGTA estimateed the IRS awarded $26.7 million to fraudulent home buyer tax credit claims.

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.

Today’s News Synopsis:

A study from Lawrence Berkeley National Laboratory shows that solar homes can sell for up to $17,000 more than a non-solar comparable home. U.S. home prices fell 5.7% year over year, according to the FHFA. HUD started a two-year program which provides borrowers with up to $25,000 in loans for energy-efficient homes.

In The News:

Wall Street Journal – “Obama: Housing ‘Probably the Biggest Drag on the Economy’” (4-21-11)

“President Obama said he’s concerned that housing is ‘probably the biggest drag on the economy right now’ after being asked yesterday about the intractability of the housing crisis that is now entering its fifth year.”

San Francisco Chronicle – “Homes’ solar panels often boost values” (4-21-11)

“A study to be released today by Lawrence Berkeley National Laboratory found that solar boosts the resale value of homes, both new and old. The researchers analyzed the sales of about 2,000 solar homes in California from 2000 through mid-2009 and compared the prices to those of 70,000 comparable houses without solar. On average, a solar system added about $5.50 per watt to a home’s resale value. For a home with a typical 3.1-kilowatt solar system, that represents an extra $17,000 above the cost of a comparable, nonsolar home.”

Orange County Register – “Residents bummed about California dream” (4-21-11)

“Less than half of California residents – 46 percent – think the California dream is still alive even though most of them believe they will be better off financially in a year, according to the quarterly Citi California Pulse Survey released today. Half surveyed statewide said the dream is dead.”

Bloomberg - “Home Prices in U.S. Slide 5.7% as Distressed Properties Weigh Down Values” (4-21-11)

“U.S. home prices fell 5.7 percent in February from a year earlier as distressed properties weighed down values, according to the Federal Housing Finance Agency.”

Bloomberg - “Mortgage Rates for 30-Year U.S. Loans Decrease to 4.80%, Freddie Mac Says” (4-21-11)

“The average 30-year rate dropped to 4.80 percent in the week ended today from 4.91 percent, according to Freddie Mac. The 15-year rate averaged 4.02 percent, down from 4.13 percent a week ago, the McLean, Virginia-based mortgage-finance company said in a statement.”

Housing Wire – “Jobless claims down to 403,000 filings last week” (4-21-11)

“The number of initial jobless claims filed by unemployed Americans fell about 3% this past week after experiencing an unexpected rise a week earlier, the Labor Department said Thursday.”

Housing Wire – “HUD offers green loans for home energy improvement” (4-21-11)

“The Department of Housing and Urban Development launched a two-year pilot program for borrowers to apply for up to $25,000 in loans to make homes more energy-efficient.”

Looking Back:

One year ago, 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 in 2010. Fannie Mae and Freddie Mac were creating the Loan Modification Scam Prevention Network which intended to educate borrowers and take in complaints.

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.

The Associated General Contractors of America reports California ranked 18th in year over year economic improvement. According to LPS, Option ARM foreclosures currently represent 18.8% of foreclosure inventory. The Congressional Oversight Panel estimates HAMP will avert only 800,000 foreclosures. Statistics from S&P shows home prices decreased 3.1% year over year.

In The News:

Sign On San Diego – “California construction jobs up in February” (3-29-11)

“California added 15,500 construction jobs from January to February, far outpacing all other states. But it still ranks 18th in year-over-year improvement, according to the Associated General Contractors of America.”

CNN - “Home prices near a double dip” (3-29-11)

“January home prices fell for the sixth month in a row, edging closer to a double dip. The S&P/Case-Shiller home price index covering 20 major markets fell 3.1% year-over-year, hovering near the market’s bottom set in April 2009.”

Housing Wire – “House Democrats give Geithner plan to revamp HAMP” (3-29-11)

“the Congressional Oversight Panel estimates HAMP will avert only 800,000 foreclosures before the program ends, far short of the 3 million to 4 million originally estimated.”

Mercury News – “As gas, food prices rise, consumer confidence falls” (3-29-11)

“The Conference Board’s Consumer Confidence Index fell more than expected to 63.4 from a revised 72.0 in February. Economists expected a decline to 65.4, according to FactSet. A reading of 90 indicates a healthy economy.”

Housing Wire – “Foreclosure inventory volume outpacing actual foreclosure sales: LPS” (3-29-11)

“Another significant shift occurred in February with data showing a 23% hike in Option ARM foreclosures in the past six months. Option ARM foreclosures now make up 18.8% of the foreclosure inventory, outpacing subprime foreclosures.”

Bloomberg - “U.S. Treasury to Publicly Grade Mortgage Servicers Over Loan Modifications” (3-29-11)

“The U.S. Treasury Department plans to publicly grade mortgage servicers on how well they respond to homeowners seeking reductions in payments as the government encourages loan modifications to stem foreclosures.”

Housing Wire – “Average national mortgage rate rose in February: FHFA” (3-29-11)

“The average national contract mortgage rate for the purchase of previously occupied homes by combined lenders hit 4.79% in February, up 0.8% from the previous month, the Federal Housing Finance Agency said Tuesday.”

Housing Wire – “Regulators vote for 20% down on QRM” (3-29-11)

“Federal regulators voted in favor of the initial mortgage risk-retention proposal Tuesday. Qualified residential mortgages exempt from the rule will require a 20% down payment.”

DSNews - “House Republicans Introduce Eight Bills to Speed Wind-Down of GSEs” (3-29-11)

“The eight proposals include measures to raise guarantee fees the GSEs will charge for mortgage-backed securities they insure and to prevent the GSEs from offering any new products while they are under conservatorship or receivership.”

Looking Back:

One year ago, a study from USC showed that immigrants were more attracted to mid-size cities. Goodman claimed HAMP was bound to fail because of its failure to address negative equity. According to Realpoint, the delinquency rate among commercial mortgage-backed securities reached 6 percent within a month. First American CoreLogic estimated the average home experiencing negative equity would not obtain positive equity until late 2015.

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.

The CBIA reports home production has dropped 41% from last year. MacroMarkets believes a double dip in housing prices may soon occur. Fannie Mae said mortgage applications decreased by 7.9% in January. U.S. home prices fell 3.9% year over year, according to FHFA.

In The News:

Housing Wire – “Cleveland Fed president says housing remains weak link in recovery” (3-22-11)

“Sandra Pianalto, president of the Federal Reserve Bank of Cleveland, says the housing sector remains one of the most ‘unforgiving aspects’ of the recession.”

Housing Wire – “Elizabeth Warren aims to cut regulatory costs for community banks” (3-22-11)

“Elizabeth Warren, the special adviser to the Treasury Department, told an audience of community bankers Tuesday that the Consumer Financial Protection Bureau she is working to construct will look to cut regulatory costs for smaller financial institutions.”

CBIA - “California Housing Production Continues Decline in February, CBIA Announces” (3-22-11)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,088 total housing units in February, down 41 percent from the same month a year ago and down 26 percent from January. Permits for single-family homes totaled 1,204, down 34 percent from February 2010 and down 26 percent from the previous month, while multifamily permits totaled 884, down 48 percent from a year ago and down 24 percent from January.”

Housing Wire – “Housing double dip could be coming: MacroMarkets” (3-22-11)

“A double-dip in housing could arrive this year with national home prices only 1% away from a new ‘post-crash low,’ MacroMarkets said in its March 2011 Home Price Expectation Survey.”

Housing Wire – “Fannie Mae expects home sales to remain soft through spring season” (3-22-11)

“Home sales are expected to remain soft in the near term after mortgage applications fell 7.9% in January and another 3.3% in February, Fannie Mae said in its March Economic Outlook report.”

Bloomberg - “U.S. Commercial Property Prices Fell for Second Straight Month in January” (3-22-11)

“The Moody’s/REAL Commercial Property Price Index slumped 1.2 percent from the previous month and 4.3 percent from a year earlier. It’s up 4.2 percent from an eight-year low in August, Moody’s said in a statement today.”

Bloomberg - “Home Prices in U.S. Declined 3.9% in January From Year Earlier, FHFA Says” (3-22-11)

“U.S. home prices fell 3.9 percent in January from a year earlier as the housing market struggled to recover from the worst crash in seven decades, according to the Federal Housing Finance Agency.”

Housing Wire – “Federal Reserve’s balance sheet grows on MBS, Treasury securities” (3-22-11)

“At Dec. 31, the Fed reported total assets of $2.43 trillion, up $193 billion from 2009, the Federal Reserve said in its consolidated 2010 financial report released Tuesday. The expanded balance sheet includes an $86 billion increase in mortgage-backed securities acquired from government-sponsored enterprises and federal agencies.”

Housing Wire – “HUD updates Chinese drywall remediation guidance” (3-22-11)

“The Department of Housing and Urban Development and the Consumer Product Safety Commission recently released an updated version of their guidance on Chinese drywall remediation. The change comes after a study by Sandia National Laboratories found there were no correlating hazardous effects.”

Looking Back:

The total number of failed banks so far in 2010 has now reached 37. Geithner suggests that government officials listen more to harmed families and businesses than to large financial institutions while considering a financial overhaul bill. Lennar is investing over $3 billion into distressed real estate assets. California will offer about $3.1 billion in taxable debt sales this week.

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.