Sources:

New jobless claims drop to lowest level since 2008
California unemployment falls for 4th straight month in November
Mortgage Rates for 30-Year U.S. Loans Fall to 3.94% as Record Low Matched
SoCal home sales rise on declining prices
California November Home Sales
S.E.C. Sues 6 Former Top Fannie and Freddie Executives
FHFA extends loan data implementation deadline for GSEs
Attorney General Expect to Reach Settlement Before Christmas
FDIC Announces Settlement With Washington Mutual Directors and Officers
Foreign homebuyers clicking on depressed US housing markets
Realtors: We overcounted Hoem Sales for Five Years

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. In a top story, six former Fannie Mae and Freddie Mac top executives have been accused by the SEC of fraud involving securites.  The world’s largest banks are also being downgraded by Fitch, banks including Bank of America, Morgan Stanley, and Goldman Sachs.

In The News:

Los Angeles Times - “SEC accuses former Fannie Mae, Freddie Mac bosses of fraud” (12-16-11)

“Six former top executives of housing finance giants Fannie Mae and Freddie Mac were accused of securities fraud Friday by federal regulators for allegedly misleading investors about the size of the companies’ risky subprime mortgage holdings.  30-year fixed mortgage rates are at an all-time low of 3.94%.”

Realty Times – “30-Year Fixed-Rate Mortgage Matches All-Time Record Low at 3.94 Percent” (12-16-11)

“In Freddie Mac’s results of its Primary Mortgage Market Survey® (PMMS®), the average fixed mortgage rates at or near their all-time lows. The 30-year fixed matched the average all-time record low of 3.94 percent, and a new all-time record low was set for the 15-year fixed, both previously set in the October 6, 2011 Freddie Mac PMMS.“

San Francisco Chronicle - “Moratorium leads to dip in foreclosure filings” (12-16-11)

“U.S. foreclosure filings fell last month as delinquent homeowners got a holiday  break, RealtyTrac reported.  A total of 224,394 properties received notices of default, auction or  repossession, down 14 percent from a year earlier, the data seller said Thursday.”

CNN Money - “Fitch downgrades world’s largest banks” (12-16-11)

“The ratings firm Fitch downgraded a cluster of the world’s largest banks Thursday, pointing to trading challenges facing international markets.  The banks included Bank of America (BAC, Fortune 500), Morgan Stanley (MS, Fortune 500) and Goldman Sachs (GS, Fortune 500), as well as Europe’s Barclays, Societe Generale and BNP Paribas.”

Housing Wire - “Fed officials testify on European liquidity injections” (12-16-11)

“Steven Kamin, acting director of the division of international finance for the Federal Reserve, said in prepared congressional testimony that swap transactions to help Europe “present no exchange rate or interest rate risk to the Fed.”

Los Angeles Times – “California unemployment falls for 4th straight month in November” (12-16-11)

“California employers added 6,600 new jobs in November, driving the monthly unemployment rate down to 11.3%, its lowest level since the depths of the recession in June 2009.  The decline from October’s jobless rate of 11.7% marked the fourth consecutive month that the Golden State has generated jobs as it gradually replaces some of the 1.3 million lost in the worst economic downturn in half a century, the California Employment Development Department reported.”

Housing Wire – “Nevada AG sues LPS, alleging mishandled mortgage documentation” (12-16-11)

“Nevada Attorney General Catherine Cortez Masto filed suit against Lender Processing Services (LPS: 15.83 -8.71%) for allegedly falsify foreclosure documents with the state.”

DS News - “Mortgage Debt in the U.S. Continues to Diminish” (12-16-11)

“The ongoing turmoil still gripping housing markets across the country has manifested itself in the Federal Reserve’s macro assessment of household wealth and capital flow.”

Housing Wire - “MBIA moves to limit CMBS exposure” (12-16-11)

“Bond insurer MBIA (MBIA: 0.00 N/A) signed a deal this week to commute $20 billion of its insured exposure to shield the company from future risks on volatile commercial mortgage-backed securities.”

Hard Money Loan Closed

Compton, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $125,000 on a 4 bedroom, 2 bathroom home appraised for $238,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris will be speaking at the Real Estate Rewind at IRCA Los Angeles on January 3, 2012.

The Norris Group will be at the Real Estate Investor Rewind at CVREIA on January 10, 2011.

Looking Back:

6,111 new and resale houses and condos were sold in the Bay Area in November 2010, according to MDA DataQuick. Freddie Mac reported the 30-year mortgage rate rose to 4.83%. Statistics from CoreLogic show home prices declined 3.93% in October from July 2010. Three members of congress introduced a bill which would possibly put an end to the use of MERS by GSEs.

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:

Pending Home Sales Decreases by 4.6%
Consumer confidence dips to recession level–Conference Board
New-Home Sales Rise 5.7 Percent in September
Remodeling Double-dip Offers Opportunity for Homeowners
FHFA removes barriers to refinance more borrowers
HUD Offers REO Homes for $100 Down in Select States
State agency foreclosing on borrowers who rent out their homes
Delaware AG Sues MERS

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.  Pending home sales decreased this week according to the San Francisco Chronicle, and consumer spending increased 0.6%.  The California Housing Finance Agency has stopped foreclosures on a small group of borrowers renting out their homes.

In The News:

Housing Wire - “CMBS defaults fall and spreads tighten” (10-28-11)

“Commercial mortgage-backed securities are benefiting from tightening spreads and a slowing loan default rate, analysts said this week.“

Bloomberg - “Consumer Spending in U.S. Rises 0.6%” (10-28-11)

“Consumer spending in the U.S. accelerated in September, helping the world’s largest economy skirt a recession.  Purchases increased 0.6 percent, matching the median estimate of 81 economists surveyed by Bloomberg News, after a 0.2 percent gain the prior month, Commerce Department figures showed today in Washington. Incomes rose less than projected, sending the savings rate down to the lowest level in almost four years”

Realty Times - “Fixed Mortgage Rates Change Little” (10-28-11)

“Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates changing little for the second consecutive week amid mixed consumer confidence and housing data. Fixed mortgage rates remain near their 60-year lows.”

San Francisco Chronicle - “Pending sales of existing homes fall” (10-28-11)

“The number of contracts to purchase previously owned U.S. homes unexpectedly  fell in September as lower prices and borrowing costs failed to support demand.”

Housing Wire - “Two bankers, one investor sentenced for TARP fraud scheme” (10-28-11)

“A district judge sentenced two executives of the closed Orion Bank and a large investor to prison this week and ordered them to pay a $2 million fine for a scheme to secure millions in bailouts from the Troubled Asset Relief Program.”

DS News – “Senators Urge Government to Act Fast to Create an REO Rental Program” (10-28-11)

“Thirty-three senators submitted a letter Thursday encouraging the Obama administration and the Federal Housing Finance Agency (FHFA) to work quickly in developing a program to make vacant foreclosed homes available for rent.”

Inman - “Senators want to see Fannie, Freddie REO plan” (10-28-11)

“As Fannie Mae and Freddie Mac continue to take possession of  foreclosed homes at a rapid pace, Senate Democrats are voicing their  impatience with their management of real estate owned (REO) properties.”

Los Angeles Times - “California state housing agency reverses on foreclosures” (10-28-11)

“A state-run housing agency at least temporarily has suspended the practice of foreclosing on a small number of borrowers who rented out their homes.”

Looking Back:

Research showed the national election years tended to be bad for housing. Wells Fargo said that up to 55,000 of their foreclosures had mistakes.  The 30-year mortgage rate increased to 4.23%, according to Freddie Mac..

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.

According to Housing Wire, mortgage applications went up over 1% with the incease of purchase activity and refinancing.  DS News reported the Supreme Court will not be reviewing its case to reconsider the ruling in its recent court case.  According to Zillow’s latest data report, home values continue to remain the same as foreclosures begin to slow.

In The News:

Housing Wire - “Mortgage applications increase 1.3%” (10-12-11)

“Mortgage application filings increased 1.3% this past week as refinance and purchase activity picked up, an industry trade group said Wednesday.  The Mortgage Bankers Association reported that the market
composite index – a measure of loan application volume – jumped 1.3% on a seasonally adjusted basis from last week.”

Realty Times - “Mixed News Keeps Low Mortgage Rates Stable” (10-12-11)

“For the past week, mixed economic news that continues to lead the headlines has helped to keep low mortgage rates stable. Financial troubles in Europe has left investors busy each day waiting to see if Greece will default or a rescue plan will be implemented. Here in the U.S., even a negative report that is not considered terribly bad is spreading optimism to the markets making any predictions unreliable.”

DS News - “Supreme Court Declines to Review MERS Challenge” (10-12-11)

“The United States Supreme Court has denied a writ of certiorari in a case involving MERS, refusing to reconsider a California court ruling, which upheld MERS’ right to initiate foreclosures.”

Los Angeles Times – “Weak demand at Treasury note sale drives rates up” (10-12-11)

“The U.S. Treasury saw weak demand at its auction of new 10-year notes, a sign that investors’ hunger for government bonds as a haven continues to ebb — at least at current low interest rates.”

Inman - “Company offers real estate agent directory app on Facebook” (10-12-11)

“N-Play, a company that offers a suite of real estate-related applications on Facebook, has rolled out a real estate agent directory app, the company announced last week.”

Realtor Magazine - “Zillow: Home Values Hold Steady, Foreclosures Slow” (10-12-11)

“Home prices mostly held flat in August, increasing a modest 0.1 percent from July to August, according to Zillow’s latest Home Value Index.”

DS News - “Fitch: Special Servicers Mitigate CMBS Losses” (10-12-11)

“The number of commercial mortgage backed securities (CMBS) resolved by special servicers in 2010 was more than four times the amount in 2009, according to Fitch’s CMBS loss study released Wednesday.”

Housing Wire – “Senators press for mass mortgage refi plan” (10-12-11)

“A group of 16 senators sent a letter to regulators Tuesday, pressing for a plan to boost mortgage refinancing for more homeowners as soon as possible. Such a plan is being widely discussed admittedly, and now the lawmakers are ready to
see some action.”

Looking Back:

Multiple states were cooperating in an investigation to determine whether or not lenders violated foreclosure laws when seizing houses from delinquent borrowers. The U.S. was the second largest holder of U.S. debt. A survey from the National Association for Business Economics showed that economists expected gross domestic product would increase 2.6% in 2010 and 2011. According to a Thomson Reuters survey, 63% of potential home buyers were discouraged from buying a home because of the the current economic conditions.

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.

MDA DataQuick reports 19,412 houses and condos sold in Southern California last month. Freddie Mac believes home sales will rise 5% in 2011. President Barack Obama revealed the White House’s deficit reduction plan, which aims to reduce the nation’s deficit by $4 trillion in 12 years. Home Depot sales show Americans are doing more home improvement.

In The News:

MDA DataQuick – “Southland Home Sales Still Slow, Prices Edge Down” (4-13-11)

“A total of 19,412 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in March. That was up 35.1 percent from 14,369 in February, and down 5.2 percent from 20,476 in March 2010, according to DataQuick of San Diego.”

NAR - “Realtors® Applaud Bill to Speed Lender Response to Short Sales” (4-13-11)

“A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House yesterday and strongly supported by the National Association of Realtors®, would impose a deadline of 45 days on lenders to respond to short sale requests.”

Los Angeles Times – “Americans doing more home improvement projects” (4-13-11)

“Home Depot Inc., the largest home improvement retailer, in February reported its first annual sales increase since 2006, before the housing market crashed. The home improvement business is stabilizing despite the continued weakness of the housing market, Home Depot Chief Executive Frank Blake said at the time.”

Bloomberg - “Banks Must Pay Victims of Botched Foreclosures, Regulators Say” (4-13-11)

“The 14 largest U.S. mortgage servicers must pay back homeowners for losses from foreclosures or loans that were mishandled in the wake of the housing collapse, the first of a set of sanctions regulators are seeking against the companies. ”

Bloomberg - “JPMorgan Says Foreclosure Accord With Federal Reserve, OCC May Come Today” (4-13-11)

“The bank took a $1.1 billion charge and may add as many as 3,000 employees to comply with the consent agreement, Chief Executive Officer Jamie Dimon and Chief Financial Officer Doug Braunstein told reporters on a conference call today after the bank reported a 67 percent increase in net income. The accord involves the Office of the Comptroller of the Currency and the Federal Reserve, the bankers said.”

Housing Wire – “Freddie Mac expects strong spring home buying” (4-13-11)

“Freddie Mac said home sales will increase 5% in 2011 compared to 2010 — a projected 4.9 million home sales. The agency estimates that number will rise 12.2% to 5.5 million homes sales in 2012.”

Housing Wire – “Obama deficit reduction plan would impact tax itemization of home purchases” (4-13-11)

“President Barack Obama revealed the White House’s deficit reduction plan Wednesday, saying his administration aims to reduce the nation’s deficit by $4 trillion over the next 12 years by using a mix of higher taxes on the wealthiest Americans, reductions in defense spending, tax code changes and health care savings.”

Housing Wire – “Fitch: Increasing interest rates bad for investors, home affordability” (4-13-11)

“Elevated rates would expose trading-oriented investors to heightened price volatility, particularly those that are highly leveraged, funded through repo markets or mark-to-market their holdings, according to the report. In a rising rate scenario, U.S. banks’ current MBS holdings of roughly $1.3 trillion would face either mark-to-market losses or, if held on a long-term basis, lower net interest income.”

Orange County Register – “Forecast: Irvine rents to rise in ’11″ (4-13-11)

“Irvine experienced positive net absorption in 2010 of 2,930 units, more than doubling the total net absorption from 2009. This increase in demand helped boost occupancy 2.9 percentage points to 95.5 percent, the third-highest among Orange County submarkets. Average monthly rental rates increased 1.8 percent to $1,699 per month. Same-store rents, however, declined 0.1 percent.”

Orange County Register – “Most volatile U.S. home market? Not O.C.!” (4-13-11)

“Orange County’s best appreciation rate was 21.2 percent in Jan. 2005. CoreLogic’s national index best year-over-year mark? Plus 17.6 percent in March 2005. Biggest loss among the 45 towns since ’05? Miami, off 34.9 percent year-over-year in Feb. 2009.”

Looking Back:

One year ago, MDA DataQuick reported 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties sold in March. Schwarzenegger signed a bill allowing taxpayers to be exempt from paying for forgiven mortgage debt. In 2008 and 2009, the income needed to buy a median-priced home decreased in 93 percent of U.S. markets. According to IAS, national house prices fell 0.6% in February 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.

RealtTrac reports military towns experienced an increased in foreclosure activity from 2008 to 2010. Congress agreed to a budget late Friday. Fannie Mae is creating more home ownership incentive by offering up to 3.5% in closing cost assistance. Federal Trade Commission settled with mortgage relief scammers Monday for $2.2 million in refunds to homeowners who were tricked into mortgage relief scams.

In The News:

Sacramento Bee – “Southern California’s military towns have taken a crushing blow in real estate collapse” (4-11-11)

“Foreclosures rose 32 percent in ZIP codes near military towns over the last three years, from 2008 to 2010, compared with 23 percent nationwide, said Rick Sharga, senior vice president of RealtyTrac in Irvine.”

Housing Wire - “Monday Morning Cup of Coffee” (4-11-11)

“With hours to spare Friday night, Congress agreed to a budget that would keep the government from shutting down for the first time since 1995.”

Housing Wire – “Fitch reports slowing subprime delinquencies, foreclosure sales” (4-11-11)

“The percentage of borrowers with mortgages classified as 30 or more days delinquent fell by 5.3% in March from February and the percentage of borrowers who are 60 days or more delinquent fell by 4.4%, according to a report composed by Fitch Solutions director David Austerweil.”

Daily Bulletin – “Casting a shadow: Housing market’s hidden inventory looms” (4-11-11)

“A nine-month supply of distressed homes in the U.S., about 1.8 million units as of January, are waiting to make their way onto the market, according to data released last week from Santa Ana-based CoreLogic.”

Housing Wire – “Fannie Mae offers help with closing costs on HomePath properties” (4-11-11)

“As the housing market continues to lag in sales, Fannie Mae is laying the groundwork to entice buyers by announcing it will offer up to 3.5% in closing cost assistance on Fannie Mae-owned HomePath properties. To qualify, the buyer’s initial offering on the HomePath property must be submitted on or after April 11 and the sale must close by June 30.”

My Budget 360 – “The housing gamble: What if home prices remained stagnant until 2020?” (4-11-11)

“Given the current domestic and global trends, it is likely that housing will be suffering another troubled decade from 2011 to 2020 just like it experienced from 2001 to 2010.”

Housing Wire – “FTC settles with mortgage relief scammers for $2.2 million” (4-11-11)

“The Federal Trade Commission settled with two companies and three individuals Monday to provide $2.2 million in refunds to homeowners allegedly duped into mortgage relief scams.”

Housing Wire – “Ellie Mae, CoreLogic join forces to please Fannie Mae” (4-11-11)

“A new feature through Ellie Mae’s Encompass360 loan origination platform designed by CoreLogic (CLGX: 17.92 -0.28%) aims to reduce repurchase risk on agency loans by assessing fraudulent information before a mortgage is originated.”

Bloomberg - “IMF Cuts U.S. Growth Forecast on Oil, ‘Lackluster’ Jobs Pace” (4-11-11)

“The International Monetary Fund lowered its forecast for U.S. growth this year, predicting higher oil prices and the pace of job gains will restrain the recovery. The world’s largest economy will expand 2.8 percent this year, down from the 3 percent projected in January, the IMF said today, citing the need to reduce deficits and boost exports.”

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.

A Survey from Harris Interactive shows 70% of Americans aspire to homeownership. According to S&P/Case-Shiller, national home prices fell 4.1% in the 4th quarter of 2010. FNC Residential seems to confirm this saying home prices fell 2.2% in December. CB Richard Ellis Group expects office rents to increase this year.

In The News:

Ventura County Star – “Apartments can be good investment as more people rent” (2-19-11)

“While construction in Ventura County has taken a significant hit since the downturn began, shedding about 7,700 jobs from June 2007 to June 2010, the pain has been uneven. Single-family homes have been hit hard and condominiums even harder, said Dawn Dyer, president of Dyer Sheehan Group, a Ventura real estate consulting firm.”

Los Angeles Times – “Homeownership loses its luster” (2-19-11)

“Two-thirds of Americans still see a home purchase as a safe investment, but that’s down from 83% in 2003, according to a study by Fannie Mae. Homeownership has fallen to 66.5% of the adult population, down from 69.2% in 2004. A Harris Interactive polls says 70% of Americans aspire to homeownership, down from 77% a year ago.”

San Francisco Chronicle – “Consumer Confidence Index hits 3-year high” (2-22-11)

“The Conference Board says its Consumer Confidence Index climbed to 70.4 this month, up from a revised 64.8 in January, hitting its highest level since February 2008. It was the index’s fifth consecutive monthly increase. The figure topped economists’ expectations of a reading of 65, according to FactSet.”

CNN - “Home prices near 2009 lows — and may fall more” (2-22-11)

“National home prices fell 4.1% during the last three months of 2010, compared with 12 months earlier, according to the latest report from the S&P/Case-Shiller home price index, a closely watched indicator of market trends. They were down 1.9% compared with three months earlier.”

Housing Wire – “Fitch Solutions subprime credit default swap prices highest since October 2008″ (2-22-11)

“Analysts said the firm’s index for subprime swaps rose 5.2% in January on top of increases the prior two months, including a 7.2% gain in December. Fitch said the 2004 and 2007 vintages performed well last month with returns of more than 7% although constant default rates average 20% higher for the swaps from 2007.”

Housing Wire – “Moody’s finds commercial real estate eluding recovery” (2-22-11)

“After three consecutive months of increases, commercial real estate prices fell 0.9% in December, according to Moody’s Investors Service.”

Housing Wire - “Foreclosure sales weigh down home prices in 23 markets” (2-22-11)

“Home prices in 23 U.S. metropolitan areas fell 2.2% in December, the largest one-month drop for fiscal 2010, and a sign that foreclosed properties continue to weigh down home values across the nation, the FNC Residential Price Index revealed Monday.”

Bloomberg – “U.S. Office Rent Growth to Be ‘Modest’ in 2011, CB Richard Says” (2-22-11)

“U.S. office rents will increase for the first time in three years in 2011, with growth ‘modest and limited to key markets’ before a recovery accelerates in 2012, according to CB Richard Ellis Group Inc.”

Looking Back:

One year ago, Moody’s reported that commercial property prices increased by 4.1 percent in December. A survey showed that 87 percent of homebuilders expected to lose money due to the new FHA guidelines. Short sales accounted for 15.9% of home purchases in January 2010. Janet Yellen predicted the U.S. economy would perform below potential throughout this year and the next.

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.

Resources:

Yahoo! and Zillow go live with largest online real estate network

Failure to Raise U.S. Debt Ceiling would be Dangerous, Top Obama Aid Says

Costs for home mortgages rise as Fannie, Freddie hike fees 

Mortgage modifications increase 42% in 2010: Hope Now 

DBRS finds half of mortgage modifications redefault

Senate committee considers foreclosure mediation program

Today’s News Synopsis:

The Labor Department reports the economy added 36,000 jobs in January. The Congressional Oversight Panel expects future losses on commercial real estate loans to cost between $200 billion and $300 billion. Orange County construction unemployment increased to 22.5%.

In The News:

Washington Post – “Housing finance changes likely to mean less government backing for some buyers” (2-4-11)

“The Obama administration is likely to recommend reducing the size of mortgages eligible for government backing, according to current and former officials”

Housing Wire – “Nonfarm payrolls add 36,000 jobs, unemployment down to 9%” (2-4-11)

“The Labor Department’s Bureau of Labor Statistics said the economy added 36,000 jobs during the first month of 2011 with gains in manufacturing and retail. Employment levels fell in the construction, transportation and warehousing sectors with little change in most other industries.”

Housing Wire – “Multifamily delinquency rate in CMBS climbs to 17.4%, highest ever recorded by Fitch” (2-4-11)

“The delinquency rate in the multifamily sector rose to 17.4% in January, up from 15.63% the prior month and at the highest level since Fitch began tracking CMBS delinquencies.”

Housing Wire – “Easing tax burdens on investors could stem CRE losses: COP” (2-4-11)

“Future losses on commercial real estate loans could cost between $200 billion and $300 billion, but easing certain tax levies against investors could alleviate the problem, according to the Congressional Oversight Panel.”

Housing Wire – “Hudson & Marshall to auction more than 700 homes in Southwest” (2-4-11)

“Several hundreds of real estate-owned properties in the Southwest United States are up for auction and, according to auction house Hudson & Marshall, that volume will be meeting equal demand. The firm is auctioning off more than 700 homes in Arizona, California and Nevada over the next two weeks.”

Housing Wire – “FDIC, SEC both name new general counsel” (2-4-11)

“The Federal Deposit Insurance Corp. named Michael Krimminger FDIC general counsel on Friday.”

Bloomberg - “U.S. Commercial Property Recovery Spares Economy” (2-4-11)

“Prices of commercial properties sold by institutional investors surged 19 percent in 2010, the second-biggest gain on record, according to an index developed by the MIT Center for Real Estate. Investments in office properties, the largest part of the market, more than doubled last year to $41.6 billion, according to Real Capital Analytics Inc., which tracks commercial property sales globally.”

Orange County Register – “Construction umeployment hits 22.5%” (2-4-11)

“Construction unemployment jumped to 22.5 percent. December’s construction unemployment was 20.7 percent.”

Orange County Register – “Bottom near for biggest O.C. properties” (2-4-11)

“I’m not quite sure where the apartment recession is. It’s definitely down in rents. There’s no doubt about that. (But) people are buying Southern California apartments like they’ll never be built again. And some of the smartest people I know — Donald Bren, the Lewis family — are building like mad.”

Looking Back:

One year ago, Marcus & Millichap annual apartment report placed San Diego in second place for stability and possible growth in 2010. Statistics from MDA DataQuick showed that 18,621 California homes sold for over 1 million dollars in 2009. Freddie Mac reported the rate for 30-year fixed rate mortgages increased to 5.01 percent. PMI predicted that home values were near to the bottom.

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.

According to Freddie Mac, 30-year mortgage rates increased to 4.61%. The Labor Department reports jobless claims decreased 4% last week. Clear Capital claims national home prices dropped 5.8% in November. Fitch Ratings forecasts a 10% decline in home prices during 2011.

In The News:

NAHB - “NAHB’S Multifamily Production and Vacancy Indices Show Increased Confidence” (12-9-10)

“Serving as leading indicators for the sector, two composite multifamily indices produced from NAHB’s survey of multifamily builders and property managers showed improvement in the third quarter of 2010. The NAHB Multifamily Production Index (MPI) increased to a value of 35.6, up from the 26.6 level reported for the second quarter. This is the highest the MPI has been since 2007.”

Mercury News – “Mortgage rate for 30-year fixed loans hits 4.61 percent” (12-9-10)

“Freddie Mac said Thursday that the average rate on a 30-year fixed loan increased sharply from last week’s rate. And it is well above the 4.17 percent rate hit a month ago — the lowest level on records dating back to 1971.”

Housing Wire – “Jobless claims fell nearly 4% last week” (12-9-10)

“Initial jobless claims fell nearly 4% last week to 421,000 after coming in at the lowest level in two years a few weeks ago. The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Dec. 4 decreased by 17,000 from the previous week’s upwardly revised figure of 438,000.”

Housing Wire – “Zillow: Home values crater by $1.7 trillion in 2010″ (12-9-10)

“U.S. homes are expected to lose more than $1.7 trillion in value this year, 63% more than the estimated $1 trillion lost in 2009, according to Zillow.”

Housing Wire – “Double dip in some markets drag home prices down 5.8%: Clear Capital” (12-9-10)

“Home prices in November dropped 5.8% over the previous three months and are down 2.7% from a year ago, according to real estate analytics firm Clear Capital.”

Housing Wire – “Fannie Mae survey finds traditional homeownership changing” (12-9-10)

“51% of survey respondents said the housing crisis has not affected their overall willingness to buy a home, 33% said they would be more likely to rent their next home than buy. In January, 30% of Americans surveyed said they would rent a home the next time around.”

Housing Wire – “Fitch sees 10% drop in home prices in 2011, negative outlook for MBS” (12-9-10)

“Fitch Ratings expects another 10% decline in home prices in 2011, as the supply of distressed properties continues to weigh down the housing market. Accordingly, analysts maintained the agency’s negative outlook for the residential mortgage-backed securities space and said 53% of all investment-grade RMBS rated by Fitch have a negative outlook.”

Looking Back:

One year ago, Gov. Schwarzenegger signed a bill which ensured that consumers could choose their own real estate service provider when purchasing a foreclosure. According to Zillow, Bay Area properties lost 3 percent of their value during the first 11 months of 2009. 18 percent of FHA loans were either delinquent or in foreclosure. Statistics from Freddie Mac showed that national home prices increased by .9 percent during the second quarter of 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 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 200 podcasts in our free investor radio archive.

18,091 new and resale homes were sold in Southern California, said MDA DataQuick. Moody’s reports commercial real estate prices fell 3.3% from last month. A survey from American Strategies and Myers Research shows 77% of adults consider buying a home to be a good financial decision in general.

In The News:

DQNews - “Southern California Home Sales Drop Again, Median Price Edges Up” (10-19-10)

“A total of 18,091 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in September. That was down 2.4 percent from 18,541 in August, and down 16.0 percent from 21,539 for September 2009, according to MDA DataQuick of San Diego.”

CNN - “Housing starts jump to 5-month high” (10-19-10)

“Housing starts, or the number of new homes being built, rose 0.3% to a seasonally adjusted annual rate of 610,000 in September, up from a revised 608,000 in August, the Commerce Department said.”

Housing Wire – “Barclays estimates banks face $85 billion in mortgage reps and warranties” (10-19-10)

“Barclays Capital estimates over the next five to seven years, banks may end up paying $85 billion in claims, which would result in another $75 billion of more losses to come. Analysts, though, admit the math is ‘highly subjective’ and included many assumptions, and because the claims would be paid out over time, risks of concentrated damage to balance sheets are relatively low.”

Housing Wire – “FDIC seeks long-term changes to Deposit Insurance Fund” (10-19-10)

“The board of directors for the Federal Deposit Insurance Corp. voted Tuesday to propose a long-term management plan for the Deposit Insurance Fund, which provides monetary insurance to FDIC banks in the event of failure. The two main goals of such a plan, which is required under the Dodd-Frank Wall Street Reform and Consumer Protection Act, are to maintain a positive fund balance as well as keep future assessment rates consistent for banks.”

Housing Wire – “KBW: Two-thirds of investors oppose FASB accounting proposal” (10-19-10)

“One of the key changes in the proposal would require banks to report the estimated fair value of most loans on their books alongside the current cost accounting valuations. According to the survey of 62 U.S. institutional investors, only one in five favor the proposed changes.”

Housing Wire – “Fitch: 2006, 2007 subprime RMBS prices improving” (10-19-10)

“Subprime prices within two of the most-maligned vintages of residential mortgage-backed securities are showing signs of stabilizing, according Fitch Ratings. The agency’s total market price index for the RMBS sector through September was 9.85, which is nearly flat with the previous three months, according to analysts. But Fitch said RMBS prices from the beleaguered 2006 and 2007 vintages improved last month, climbing 15% and 10%.”

Bloomberg - “Commercial Property Prices in U.S. Decline to Eight-Year Low, Moody’s Says” (10-19-10)

“The Moody’s/REAL Commercial Property Price Index fell 3.3 percent from the prior month to surpass the post-crash low in October 2009, the company said in a statement today. The measure is 45 percent below its October 2007 peak and is at its lowest since June 2002.”

Inman - “Homeownership losing its appeal?” (10-19-10)

“American Strategies and Myers Research & Strategic Services LLC conducted the 2010 Housing Opportunity Pulse Survey on behalf of the National Association of Realtors, interviewing 1,209 adults by telephone Sept. 12-17, 2010. A quarter were renters and 70 percent were homeowners. Overall, 77 percent of respondents said they thought buying a home was a good financial decision in general; 16 percent said it was not a good decision; and 6 percent said they didn’t know.”

Looking Back:

Gov. Arnold Schwarzenegger signed SB 94, which prevents prohibits any person from collecting an advance fee from a consumer for loan modification. According to Campbell Surveys, the national average home price rose 6% from August to September. MetroStudy anticipates a total of 562,000 housing starts in 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 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.

The MBA’s weekly survey shows mortgage application volume increased by 0.6 percent. The Obama will provide the Treasury Department and HUD with $3 billion for aiding homeowners. The NAR reports that most U.S. metro areas experienced a decrease in home prices during the second quarter, and distressed homes accounted for 32 percent of second quarter sales.

In The News:

Mortgage Bankers Association – “Mortgage Applications Essentially Unchanged Despite Lowest Rates in MBA Weekly Survey” (8-11-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 6, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 0.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 0.4 percent compared with the previous week.”

Associated Press - “Obama administration to provide $3B in housing aid” (8-11-10)

“The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs. Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.”

NAR - “Broad Stabilization in Second Quarter Metro Area Home Prices with Strong Sales” (8-11-10)

“In the second quarter, 100 out of 155 metropolitan statistical areas¹ (MSAs) had higher median existing single-family home prices in comparison with the second quarter of 2009, including 14 with double-digit increases; two were unchanged and 53 metros showed price declines. In the first quarter of this year 91 areas had higher prices, while only 26 MSAs experienced annual price gains in second quarter of 2009. The national median existing single-family price was $176,900 in the second quarter, up 1.5 percent from $174,200 in the same period of 2009. The median is where half sold for more and half sold for less. Distressed homes accounted for 32 percent of second quarter sales, down from 36 percent a year ago.”

Sign on San Diego – “Price reductions on San Diego homes increase” (8-11-10)

“As of Aug. 1, 23 percent of all the homes for sale in the City of San Diego had seen a price reduction, says a report by Trulia.com, a real estate website. That’s compared to July where 20 percent of the homes for sale in San Diego had experienced a price cut. The average price reduction was 8 percent. On a national level, Trulia estimated that 25 percent of all home listings have had at least one price reduction. The average size of the cut was 10 percent of the original list price, chopping an estimated $30.1 billion in value.”

Housing Wire – “Foreclosures Down 5% in First Half of 2010: Foreclosure Listings Nationwide” (8-11-10)

“Foreclosure Listings Nationwide said second-quarter foreclosures rose 1% from the year ago and declined 4% from the prior quarter. More than 1.6m properties began the foreclosure process during the six months ending June 30, representing a nearly 7% decline from a year ago.”

Housing Wire – “Fitch Sees $100bn in Special Servicing CMBS Loans by Year End” (8-11-10)

“Commercial real estate loans that require special servicing continue to climb with the total volume projected to reach $100bn by the end of 2010. These loans are used as collateral in commercial backed mortgage securitizations (CMBS).”

Housing Wire – “FHA Postpones Premium Changes until October” (8-11-10)

“Last week, Federal Housing Administration (FHA) commissioner David Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. Based on industry feedback to the announcement, the FHA postponed the premium fee changes on all new case numbers for one month, and will now implement them on Oct. 4, 2010.”

Housing Wire – “Most Borrowers Choose Fixed-Rate Mortgages for Refinancing, Freddie Says” (8-11-10)

“Borrowers who are refinancing their homes are taking advantage of the lowest fixed-mortgage rates in the past 50 years, according to Freddie Mac’s quarterly Product Transition Report today. The report indicates 95% of refinance loans completed in Q210 were processed with a fixed-rate mortgage (FRM).”

Bloomberg - “Fed Reverses Exit Plans, Sets $2 Trillion Floor for Holdings” (8-11-10)

“Officials directed the New York Fed’s trading desk to reinvest what economists estimate will be $15 billion to $20 billion a month in maturing agency and mortgage-backed securities back into U.S. Treasuries. The purchases will help keep Treasury yields and mortgage costs low and prevent the level of monetary stimulus from shrinking further.”

Realty Times – “Top 10 Things You Need to Know About Self-Directed IRAs” (8-11-10)

“IRAs Can Purchase Almost Anything. A common misconception about IRAs is that purchasing anything other than CDs, stocks, mutual funds or annuities is illegal in an IRA. This is false. The only prohibitions contained in the Internal Revenue Code for IRAs are investments in life insurance contracts and in ‘collectibles.’ Since there are so few restrictions contained in the law, almost anything else which can be documented can be purchased in your IRA. A ‘self-directed’ IRA allows any investment not expressly prohibited by law. Common investment choices include real estate, both domestic and foreign, options, secured and unsecured notes, including first and second liens against real estate, C corporation stock, limited liability companies, limited partnerships, trusts and a whole lot more.”

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.