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The Norris Group Real Estate News Roundup 3/15/11

Tuesday, March 15th, 2011

Today’s News Synopsis:

14,369 new and resale houses and condos sold in Southern California last month, according to MDA DataQuick. A survey shows the majority of large fund managers do not expect interest rates to increase in the near term. ForeclosureRadar said default notices in California decreased 29.6% year over year. A study from NAHB economists shows that a family earning $80,000 per year who buys a $200,000 house will receive $41,138 in tax benefits over the entire term of home ownership.

In The News:

MDA DataQuick – “Southland February Home Sales At 3-year Low; Investor Interest High” (3-15-11)

“Last month 14,369 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 0.6 percent from 14,458 in January, and down 6.4 percent from 15,359 in February 2010, according to DataQuick Information Systems of San Diego.”

NAR - “Tax Time Less Taxing for Home Owners” (3-15-11)

“A number of tax deductions and credits are still available for home owners; these include deductions – with specific limits – for mortgage interest and capital gains on home sales, and credits for certain energy-efficient home improvements. Even with these benefits, home owners pay 80-90 percent of all U.S. federal income taxes.”

Housing Wire – “Housing needs mortgage servicing standards: OCC” (3-15-11)

“National mortgage servicing standards will be an essential part of the new housing market, acting comptroller of the currency John Walsh said Tuesday. But reaching a consensus on how to devise those standards is a struggle that will take more work, he conceded, while speaking to the American Bankers Association.”

Housing Wire - “Oil shocks hedge against U.S. interest rate hike” (3-15-11)

“Oil price shocks greatly reduce the probability of higher interest rates in the near term, the latest Bank of America Merrill Lynch Survey of Fund Managers said Tuesday.”

NAHB - “Builder Confidence Edges Up One Point in March” (3-15-11)

“After four consecutive months hovering at the same low level, builder confidence in the market for newly built, single-family homes improved by a single point in March, rising to 17 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest level the HMI has reached since May 2010, when the survey period corresponded with the final days of the federal home buyer tax credit program.”

Housing Wire – “Foreclosure activity slows in February: ForeclosureRadar” (3-15-11)

“Notice of default filings in California fell 29.6% on a year-over-year basis. The Golden State also experienced a 24.5% drop in sales back to the bank and a 20.3% decline in properties purchased by third parties.”

NAHB - “Tax Time Can Mean Big Savings for Homeowners” (3-15-11)

“A study from NAHB economists, ‘The Tax Benefits of Homeownership,’ details sample savings for a variety of income levels and homeownership situations. In one example, a household with an $80,000 annual income that buys a home with a $200,000 mortgage will save on average $1,765 in the first year—and realize a total benefit of $41,138 over the expected period of homeownership.”

NAHB - “Builder Confidence Edges Up One Point in March” (3-15-11)

“After four consecutive months hovering at the same low level, builder confidence in the market for newly built, single-family homes improved by a single point in March, rising to 17 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest level the HMI has reached since May 2010, when the survey period corresponded with the final days of the federal home buyer tax credit program.”

Housing Wire – “More than one-third of CMBS loans make scheduled balloon payments in February” (3-15-11)

“Trepp, a provider of commercial mortgage-backed securities data, said 38.4% of CMBS loans made their scheduled balloon payments in February, compared to 38.7% a month earlier.”

Housing Wire – “GSEs inflated subprime balloon before it popped: Cato Institute” (3-15-11)

“the researcher paints the government-sponsored enterprises as culprits in the subprime debacle by citing data showing Fannie and Freddie acquired 40% of all newly issued private-label subprime securities issued during the housing boom years of 2003 and 2004.”

Bloomberg - “Lehman Seeks Partner on Real Estate Development Projects” (3-15-11)

“Lehman Brothers Holdings Inc. (LEHMQ) sent requests to at least six homebuilders and developers seeking partners for 75 real estate projects in 19 states, according to executives at three companies who reviewed the solicitations.”

Looking Back:

One year ago, builder confidence decreased by over 10 percent within half of a month. Sacramento home sales decreased by 26 percent from 2009. According to LPS, the U.S. mortgage delinquency rate was at 10.25%. California contributed $2.6trn to the total $5.7trn of US housing wealth lost since the peak of 2006.

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

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216-TNG Radio – Sean O’Toole 3-12-11

Friday, March 11th, 2011

Sean O’Toole

President of ForeclosureRadar

(Full Bio)


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This week Bruce is joined by Sean O’Toole. Sean is president and founder of ForeclosureRadar. He has successfully purchased and flipped over 150 commercial and residential properties in foreclosure. He has leveraged the software industry for 15 years to make a successful trustee sale business.

Sean does not believe we will see a growth in REOs in 2011. He believes we should see a growth in REOS, but we won’t. Since September 2008, when the financial world drastically changed, foreclosures have just been trickling out. He thinks this fact is due to bank and financial institution solvency.

Sean tracks the amount of time a property remains in the foreclosure process. In California, that time period is now up to 285 days, but it should only take 120 days. The average delinquency period for homes before reaching the foreclosure process is 334 days. If you add 334 days on top of the 285 days for the foreclosure process, it is a long period of time.

Some bills are being suggested right now to end the HAMP program and the Neighborhood Stabilization program. Sean believes those programs have been largely irrelevant from the beginning. In California, the total amount of money given to neighborhood stabilization was equivalent to one week of foreclosures. The billions of dollars spent on these programs seems like a lot of money, but when you look at the big picture, it really is not.

Sean’s company created a short sale tool because he wanted to give realtors and homeowners a way to see if certain lenders are approving short sales or not. Sean believes this is a very important resource, and he will be promoting it a lot this year. Wachovia was very good at approving short sales last year, and realtors that focused on Wachovia deals were able to perform more deals than other realtors.

ForeclosureRadar has also added multiple title related services. These services are primarily for auction investors who are interested in the state of a property. ForeclosureRadar offers links to county indexes, and webinars to train investors on how to look up title issues and figure out whether or not you are buying a first or second. Knowing the position of your loan is critical, because if you buy a second then you still have to pay for the first.

The average opening bid at the end of January 2011 was $254,000, and at the beginning it was $261,000. At the end of January average, about 80% go back to the bank, so that price range is still too high for most buyers. The average debt of a foreclosure by the end of January 2011 was $397,000, and at the beginning of the year it was $385,000. We have not seen a big change in the kind of inventory being foreclosed on.

The average opening bid for a foreclosure property is 15% above market value. Properties purchased by third parties are typically 25% below market value. If a lender successfully sells at a trustee sale, they typically take a 43% hit. Sean still sees properties going for sale at 50% of what they are worth. This is why programs like HAMP have been so ineffective in high equity states like California and Florida, because the problem is not payment affordability, the problem is the fact that they are 50% under water. When their payment adjusts back to a full rate, they will still not have the income level necessary to pay off their house. Also, unemployment and job transfers can occur which severely dampens a family’s ability to pay.

Lenders have not discovered whether or not drop bids, short sales, or REO sales make the maximum profit, and Sean does not think they are too concerned about that. Many things are controlled by servicers who do not suffer a loss from the losses they help cause.

FHA is developing a program for short refis. Obama is supportive of these programs to keep people in their homes, but on the other hand, Fannie Mae and Freddie Mac are concerned with maintaining equity.

A 30 page document just came out which discussed the future of financing. The goal of the document was to tell people that Fannie Mae and Freddie Mac will not exist. Sean believes this would be a good thing. He does not like our current 0% interest rate policy. We have baby boomers close to retirement, and they cannot make a decent living on fixed income in a zero interest rate environment. You could have saved a million dollars, but if you put it into something with nearly zero risk, such as a T Bill, you would be living off of $30,000 per year.

The U.S. has $14 trillion in debt right now. We have 115 million households, but only half of those households pay taxes. Of those tax payers, the top 20% pay about 80% of all taxes.

Currently, banks are being incentivized to push commercial foreclosures into the future, rather than deal with them now. The FDIC would be insolvent if they had to get rid of foreclosures in a timely matter. We have changed the accounting rules from mark-to-market to mark-to-model. The mark-to-model philosophy is driven by the idea that certain assets will increase in the future, which encourages businesses to set aside less for loan loss reserves.

As a nation, we went from a 45% debt to equity ratio, so we had 4.5 trillion dollars worth of residential mortgage debt on 10 trillion dollars of real estate. At the peak, we went to 10.5 trillion dollars worth of mortgage debt on a false market value of 20 trillion dollars. That market value was fictitious, and our market value is down to 13$ trillion, but we still have about $10 trillion in debt. We created about $4 trillion in excess debt, which we fundamentally do not have the proper level of household income to afford. In California, we have 2.8 million homeowners who either have negative equity or don’t have enough equity to sell their house and pay commissions. In Nevada, the loan to value ratio is 123%. They owe 23% more in their mortgages than what their real estate is worth.

The next big pile of REOs will probably come from HUD. FHA has a program to perform short sale refis. It required the lender to take at least a 10% hit, and a loan to value rate of at least 115%. FHA would provide government insurance on a loan up to 115% of the house’s value for the purpose of refinancing, so long as the lender would take a 10% principal loss. They have had difficulty getting this program off the ground, and now they are talking about ending the program.

Sean believes real estate prices will decline this year. However, Sean is a believer in holding real estate. He also believes the only way out of our debt problem is inflation, and real estate is a good investment during inflationary times.

Sean’s website is www.ForeclosureRadar.com

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

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215-TNG Radio – Sean O’Toole 3-5-11

Friday, March 4th, 2011

Sean O’Toole

President of ForeclosureRadar

(Full Bio)


 streamitunesdownloadrss

This week Bruce is joined by Sean O’Toole. Sean is president and founder of ForeclosureRadar. He has successfully purchased and flipped over 150 commercial and residential properties in foreclosure. He has leveraged the software industry for 15 years to make a trustee sale business.

The Mission of ForeclosureRadar is “to bring transparency, efficiency and honesty to the foreclosure market place.” Trustee sales have a notorious reputation. Sean believes they are generally honest, but there are always a few bad apples. The Norris Group bids on trustee sales every day, and there are some people accused of bid rigging. However, it would be difficult to rig a bid in Riverside because there are often 50 people bidding at a time.

The foreclosure process has not changed since the Great Depression. Most market places for goods and services have gone online. Online bidding is much more efficient than requiring investors to stand outside the court steps for property sales.

Sean is uncertain of whether or not a national foreclosure law may be implemented in the future. Because we are a republic, each state has its own rights, and many of those rights involved property. Sean believes a national foreclosure law may not be helpful.

Sean was recently elected one of the top 100 most influential real estate leaders, and Bruce feels his election was well deserved.

Sean bought most of his trustee properties from 2002 to 2005. He bought a few properties in 2006, but he eventually sold everything that same year because he thought the bubble was about to burst. When Sean sold his properties, he noticed the affordability levels were unsustainable, many buyers were unfit for purchasing property, and builders were discounting. People would pay $370,000 for a house, with no money down, and poor credit. Later that house would be selling for $350,000 with a swimming pool. Its not likely that the buyer, who thought property values would continue to increase, is going to keep making his payments.

Sean has met multiple investors who have told him that Bruce Norris’ predictions helped them leave the market before the bubble burst. Sean wishes he had known Bruce Norris during the bubble, because it was tough for him to leave the market while his partners were disagreeing with him.

Sean bought his first house when he was 18. Later, Sean’s father persuaded Sean to run a business for him in Hawaii. The business was a homes and land magazine. Later, Hawaii’s real estate market fell severely, and it became hard to sell real estate magazines during that time. Also, Sean’s house in his home town lost a lot of value, and he had to perform a short sale.

An event in another country can have an impact on our shores. The debt bubble in Japan had a strong impact on Hawaii’s market.

Sean once found a house that looked really nice on the outside and it had been boarded up. This lead Sean to believe that the inside was probably also well kept, so he bought the house. Unfortunately, Sean discovered the neighbors had been keeping the house clean, but they had also been using the inside of the house as a trash dump to avoid paying their trash bills. The house had 8 feet of trash and 30 dead animals. When Sean attempted to hire people to take the trash out, they came out of the house throwing up and quit.

Bruce does not believe you can have the kind of website that helps people in the business unless you have experienced the business for yourself. Sean has experienced the problems that come with being in this business, which is why he has been able to build such a helpful website. Sean believes that if half the people in Silicon Valley were willing to experience the problems they are trying to fix, then we would be building much better solutions for many problems.

When Sean first began investing in trustee sales, he had to watch the notice of trustee sales coming through the county records and the newspaper. The records would only tell you what is scheduled for the first time. You would go to the trustee sales and hear the auctioneer mentioning many other properties that were not in the records, because they were being postponed. It took months to compile a complete database of when certain sales were scheduled. This gave Sean a significant disadvantage over other buyers who had been in the business longer. There were some properties that you could get information on through calling, but for most of the properties you had to stand at the court steps.

Sean’s website has leveled the playing field, and it has hastened the time it takes to go from being a novice to being fully functional. Sean believes ForeclosureRadar has significantly helped the data aspect of foreclosure sales. However, there are still other inefficiencies, such as being required to show up with cash, and not having title insurance. As the market becomes more efficient, the discounts will become smaller, and that will decrease profitability.

“Get Rich Quick” gurus and disreputable list peddlers have thrived on the industry’s darkness, and Bruce believes ForeclosureRadar has brought transparency and understandability to the business. If you are looking to get rich quick, you should probably seek another venue, but you can still make a great living in the foreclosure business. Sean does not believe in “get rich quick” ideas.

2007 was an awful year to be in the foreclosure business, because the banks were not discounting anything. During that time, he started focusing more on his software business.

Sean is always anxious after wining a foreclosure bid, because he worries that his competitors may know something he doesn’t. Bruce feels most anxious when he is the only bidder on a property. In Southern California, no one will come to your rescue if you are making a mistake. Sean once stopped a man from purchasing a second which would have resulted in a minimum $150,000 loss. After stopping the man, the other investors were furious with Sean, because they were hoping the man would destroy his ability to compete against them. Bruce understands the desire to beat out the competition, but he is glad that he was able to help someone else in a similar situation. Bruce once attempted to test the kindness of his competition by purposely qualifying for a bad sale. Once he had qualified, 4 other investors decided to qualify with him, but no one made a bid. After the foreclosure sales ended, one of the competing investors asked Bruce, “Why did you do that?” Bruce responded, “I wanted to see if you would tell me it was a second.” What the 4 investors did was worse than just letting Bruce bid on the property. The reason why they qualified for the property along side him was because they wanted to make him feel comfortable about making a bad choice. Sean has even seen an investor bid an inexperienced investor up on a bad deal in an attempt to increase the inexperienced investor’s losses.

In Sean’s hometown, he has 4 times as many properties in foreclosure as he has listed for sale. If you want to claim to be a market expert, you have to be able to understand the foreclosures in your area.

Sean’s website is www.foreclosureradar.com

We will be doing a second interview with Sean next 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.

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The Norris Group Real Estate News Roundup 2/16/11

Wednesday, February 16th, 2011

Today’s News Synopsis:

The Commerce Department said home construction rose 14.5% in January. Mortgage delinquencies decreased 6.41% in the 4th quarter, according to TransUnion. The FOMC voted to keep rates between 0 to 0.25%.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (2-16-11)

“The Refinance Index decreased 11.4 percent from the previous week and is the lowest Refinance Index recorded in the survey since the week ending July 3, 2009. The seasonally adjusted Purchase Index decreased 5.9 percent from one week earlier. The unadjusted Purchase Index decreased 0.9 percent compared with the previous week and was 18.2 percent lower than the same week one year ago”

CNN - “Home construction rises in January” (2-16-11)

“Housing starts, the number of new homes being built, rose 14.6% to an annual rate of 596,000 in January, up from 520,000 in December, the Commerce Department said.”

Mercury News – “Silicon Valley real estate: Foreclosure lull ends in Santa Clara County” (2-16-11)

“In Santa Clara County in January, 398 home were either repossessed or sold by lenders to third-party buyers, a nearly 70 percent jump from the month before, according to real estate information service ForeclosureRadar. San Mateo County had 160 foreclosures in January, a 75 percent jump from December. ”

Housing Wire – “Decrease in mortgage delinquencies losing momentum: TransUnion” (2-16-11)

“The ratio of borrowers 60 days of more delinquent on their mortgages dropped to 6.41% in the fourth quarter from 6.44% the quarter before. Compared to the same period in 2009, mortgages delinquencies are down about 7%, TransUnion reported. In the third quarter, the national rate tumbled 3.5%.”

Housing Wire – “HUD Secretary: Reforms will not substantially impact affordable housing” (2-16-11)

“Raising the Federal Housing Administration’s annual mortgage insurance premium 25 basis points will not have a dramatic impact on the affordability of homes in America, U.S. Department of Housing and Urban Development Secretary Shaun Donovan said Wednesday.”

Housing Wire – “FHA’s Stevens says mortgage servicers could face potential fines, claims” (2-16-11)

“Federal Housing Administration Commissioner David Stevens said mortgage servicers under review for improper foreclosures could face fines and potentially forced reimbursements, according to his testimony before a House subcommittee Wednesday.”

Housing Wire – “FOMC: High unemployment, limited construction continue to hinder recovery” (2-16-11)

“the Federal Open Market Committee voted unanimously to keep the target federal funds rate at next to nothing – 0% to 0.25% – and continue with its controversial $600 billion bond-buying plans.”

Housing Wire – “Frank proposes amendment to increase SEC funding by $131 million” (2-16-11)

“U.S. Rep. Barney Frank (D-Mass.) is pushing to increase budget funding for the Securities and Exchange Commission as House representatives debate a bill that could cut funding to the agency by $41 million.”

Looking Back:

One year ago, the median home price in Southern California decreased by 6 percent within a month. CBIA reported that home sales in new communities decreased by 15 percent from last month. John Burns estimated that 5 million houses and condominiums with delinquent mortgages would end up in foreclosure over the next few years. TransUnion reported that mortages over 60 days delinquent increased to 6.89% in quarter four 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 calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 1/19/11

Wednesday, January 19th, 2011

Today’s News Synopsis:

The Commerce Department reports housing starts decreased in December. However, Fannie Mae expects housing starts to triple by 2013, and the nation’s largest home builders announced plans to increase activity by 10%.  RealtyTrac claims foreclosure starts in California decreased 33% in 2010.

In The News:

Mortgage Bankers Association – “Applications Increase in Latest MBA Weekly Survey” (1-19-11)

“The Market Composite Index, a measure of mortgage loan application volume, increased 5.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.4 percent compared with the previous week.”

New York Times – “U.S. Housing Starts Slowed Sharply in December” (1-19-11)

“Housing starts in the United States dropped to an annual rate of 529,000 units, the Commerce Department said on Wednesday, down from November’s 553,000 and well below forecasts of about 550,000 in a Reuters poll. At current levels, starts account for less than a quarter of their boom-time peaks.”

Housing Wire – “Bair pushes for foreclosure claims review panel” (1-19-11)

“Federal Deposit Insurance Corp. Chairman Sheila Bair wants a foreclosure claims commission set up, similar to the one established during the oil spill crisis in the Gulf of Mexico last year, to help homeowners victimized by improper foreclosures.”

Housing Wire – “December home sales down 5% over a year: RE/MAX” (1-19-11)

“After five consecutive months of declines, monthly home sales rose 13.2% in December from the prior month, according to the RE/MAX National Housing Report released Wednesday.”

Housing Wire – “Fannie Mae: Housing starts to triple by 2013 to nearly 1.5 million” (1-19-11)

“Despite the still fragile housing market, Fannie Mae expects housing starts to triple by 2013. According to the agency’s economic outlook, housing starts are predicted to increase 17.3% and hit 710,000 this year, with another 47% increase to 1.1 million in 2012 and another gain of 42% in 2013 to nearly 1.5 million.”

Housing Wire – “Foreclosures increase 2% in 2010, decline in hotspots” (1-18-11)

“ForeclosureRadar, which tracks foreclosure data on the West Coast, reported 338,999 foreclosure starts in California in 2010, down 33% from one year prior. Arizona filings fell 18% to 119,790, and Nevada filings fell 19% to 86,010.”

Bloomberg - “Biggest U.S. Homebuilders Take Over Market as New-Home Sales Begin Rebound” (1-18-11)

“D.R. Horton Inc., Lennar Corp. and Toll Brothers Inc. are among companies planning to boost their community counts by at least 10 percent this year after writing down property values, buying land at discounted prices and obtaining financing unavailable to smaller, closely held builders.”

Bloomberg - “Wells Fargo Refuses to Settle Fannie, Freddie Refund Demands” (1-18-11)

“Prodded by lawmakers, Fannie Mae and Freddie Mac have pressed banks including Wells Fargo to buy back mortgages that were based on faulty data about the homes and borrowers. Wells Fargo said today in its fourth-quarter report that demands from the government-owned mortgage companies declined for a second straight quarter and now stand at $1.5 billion.”

Bloomberg - “Global Commercial Property Investment May Rise 25% in 2011, JLL Reports” (1-18-11)

“Investment in commercial property may rise by 25 percent worldwide this year, after returning confidence produced the most deals in the fourth quarter since 2007, Jones Lang La Salle Inc. said.”

Looking Back:

One year ago, MDA Dataquick’s monthly report showed that 22,328 homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange County in one month . AFIRE conducted a survey in which 51 percent of foreign investors claimed the US provided the best opportunity for capital appreciation. Builder confidence decreased from the previous month. Fitch Ratings saw many positive signals for housing and other related industries which they believed would lead to a strong recovery.

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

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The Norris Group Real Estate News Roundup 1/14/11

Friday, January 14th, 2011

Resources:
New York City Comptroller Issues 2nd Request for Audits from Banks
GSE mortgage securities boost record Federal Reserve payment to Treasury 
Federal Reserve posted record profit of $78.4 billion last year 
Prices down 4 months in a row 
Mortgage Refinance Applications Increase in Latest MBA Weekly Survey
U.S. Foreclosure Filings May Jump 20% in 2011 as Crisis Peaks
Freddie Mac mortgage rates decline for second consecutive week
CA foreclosure starts fall, but more auctions set

Today’s News Synopsis:

Recent research from ForeclosureRadar showed an increase in set foreclosure auctions in December despite the decrease in foreclosures for that month.  According to Housing Wire, nonperforming loans and repossessed foreclosed homes increased 27%, as reported by JP Morgan Chase.  Different states are feeling different effects from the recent robo-signing issues due mostly to varying laws for each state regarding foreclosures. 

In The News:

Housing Wire- “JPMorgan nonperforming loans up 27% from a year ago” (1-14-11)

“JPMorgan Chase (JPM: 44.91 +1.03%) reported $13.3 billion in nonperforming loans and repossessed homes through foreclosure in the fourth quarter of 2010, up 27% from a year ago.”

Bloomberg - “Big Lenders May Lose Under Plan for Simpler Mortgage Disclosure” (1-14-11)

“The Consumer Financial Protection Bureau said it will soon begin writing and testing a simplified mortgage-disclosure form aimed at making it easier for borrowers to compare deals from different lenders.”

Inman - “Robo-signing impact varies in West” (1-14-11)

“Foreclosure activity in December varied in five Western states tracked by ForeclosureRadar — perhaps because loan servicers are faced with different laws in each state as they work to put robo-signing issues behind them, the company said.”

RisMedia – “California Bucks National Foreclosure Trend in 2010″ (1-14-11)

“Fewer Californians grappled with foreclosure last year, bucking a national trend and giving homeowners fresh hope that the state’s housing market could be on the mend.”

Housing Wire – “Record long foreclosure delays spread past judicial states: BarCap” (1-14-11)

“Procedural problems cut the rate at which homes are moved from foreclosure to REO in half during October and November, but the drop did not occur in judicial states alone, according to research from Barclays Capital.”

DS News - “Free Online Resource Aims to Help Americans Facing Foreclosure” (1-14-11)

“Free online software for the creation of personalized mortgage modification applications under the federal Home Affordable Modification Program (HAMP) and otherlender programs is now available from FreeMortgageFix.com. Borrowers can complete an application to modify existing home loans via the site’s user dashboard.”

The Wall Street Journal - “Mortgage Rates Decline to 4-Week Low” (1-14-11)

“Home-mortgage rates declined for a second straight week, according to data released Thursday by Freddie Mac, but the housing market continued to face
headwinds from a supply glut and the struggling employment situation.”

NAHB - “Housing Moving to Higher Ground in 2011″ (1-14-11)

“Housing will see gradual improvements in activity this year as the nation’s economy and job market continue to move to higher ground, establishing momentum that will produce more considerable gains in 2012, according to economists who appeared at the NAHB International Builders’ Show in Orlando on Jan. 12.”

The O.C. Register – “CA. foreclosure starts fall, but more auctions set” (1-14-11)

“While foreclosure starts fell in California in December, slightly more foreclosure auctions were set than in the previous month, the latest research from ForeclosureRadar.com shows.

Realtor - “Homes Get Smaller, More Energy Efficient” (1-14-11)

The average size of a new single-family home in 2010 was 2,377 square feet, down from 2,438 square feet in 2009 and down from the peak of 2,520 square feet in 2007 and 2008, according to U.S. Census Bureau data presented by Rose Quint, assistant vice president of survey research for NAHB at the International Builders’ Show in Orlando Thursday, Jan. 13.”

Looking Back:

The 30-year fixed mortgage rate fell to 5.06 percent the week of January 10, 2010, according to Freddie Mac. 2.8 million properties received a foreclosure notice in 2009. Interactive Mortgage Advisors sold $130 billion worth of Ginnie Mae’s servicing portfolio. President Obama proposed a tax on all companies who received bailout money, which lasted until all bailout money was paid back.

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

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The Norris Group Real Estate News Roundup 1/13/11

Thursday, January 13th, 2011

Today’s News Synopsis:

Top News Stories: Several sources have reported that the number of foreclosures are expected to increase in 2011.  Bloomberg expected them to rise almost 20%.  In other news, a top story is that mortgage rates declined for the second week in a row according to Freddie Mac. Corelogic reported that home prices continued to decline.  On a positive note, however, John Burns said this has not stopped consumers from wanting to purchase homes.

In The News:

Housing Wire- “Foreclosures getting more erratic out West: ForeclosureRadar” (1-13-11)

“As mortgage servicers grapple with unique foreclosure issues from state to state, the amount of filings varied just as widely in December.”

Inman - “Steady growth foreseen, but no ‘housing revival’” (1-13-11)

“A recovering economy should translate into a spring home-selling season that’s better than last year’s, according to two economic forecasts presented jointly here at the annual meeting of the National Association of Home Builders.”

Bloomberg - “U.S. Foreclosure Filings May Jump 20% in 2011 as Crisis Peaks” (1-13-11)

“The number of U.S. homes receiving a foreclosure filing will climb about 20 percent in 2011, reaching a peak for the housing crisis, as unemployment remains high and banks resume seizures after a slowdown, RealtyTrac Inc. said.”

RisMedia - “RealtyTrac Releases Year-End Foreclosure Report” (1-13-11)

“RealtyTrac, a leading online marketplace for foreclosure properties, released its Year-End 2010 U.S. Foreclosure Market Report, which shows a total of 3,825,637 foreclosure filings—default notices, scheduled auctions and bank repossessions—were reported on a record 2,871,891 U.S. properties in 2010, an increase of nearly 2% from 2009 and an increase of 23% from 2008.”

Housing Wire – “Freddie Mac mortgage rates decline for second consecutive week” (1-13-11)

“After about a month and half of increases, Freddie Mac mortgage rates declined for a second consecutive week.”

CNN Money - “Regulators: Wake up and smell the loan risks” (1-13-11)

“Disputes related to failed mortgages are ballooning amid the fallout of loan securitizations and sales made by some of the biggest banks. But, for the time being, it doesn’t look like the primary bank regulators are doing much about it.”

DS News - “Pro Teck Valuation Services Partners with Collateral Analytics” (1-13-11)

“Pro Teck Valuation Services, a Massachusetts-based national provider of residential real estate valuations, recently partnered with Collateral Analytics, a developerof real estate analytic products and tools headquartered in Hawaii, to offer a suite of real estate analytic products to Pro Teck customers.”

Realtor - “More Borrowers Face Expiring Lock-in Rates “ (1-13-11)

“Many borrowers opt to lock in mortgage rates when buying a home or refinancing to help protect themselves against any sudden increases in interest rates while the loan is being processed.”

The O.C. Register - “Calif. home prices decline again” (1-13-11)

“Whatever momentum the California housing market may have had early last year seems to have evaporated. California home prices were falling at a 2.03 percent annual rate in November, the second consecutive year-over-year drop, according to CoreLogic’s math.”

Housing Wire - “John Burns: Despite the housing struggle, people still want to buy” (1-13-11)

“While the overall economy is starting to head forward through recovery, housing continues to stumble behind, according to a recent report card from John Burns Real Estate.”

Looking Back:

CBIA reported that condominium sales were 39 percent higher from 2009. The MBA’s weekly survey showed that mortgage loan application volume increased by 14.3 percent from the prior week. Jumbo residential mortgage-backed securities increased to 9.2 percent from December 2008 to December 2009. All but two of the Federal Reserve districts reported increased activity or improved 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 calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 12/14/10

Tuesday, December 14th, 2010

In The News:

Mortgage Bankers Association – “MBA Study Shows Mortgage Banker Production Profits Improved with Higher Refinancing Activity in Third Quarter 2010″ (12-14-10)

“Independent mortgage banks and subsidiaries made an average profit of $1,423 on each loan they originated in the third quarter of 2010, up from $917 per loan in the second quarter of 2010, according to the Mortgage Bankers Association (MBA)’s 3rd Quarter 2010 Mortgage Bankers Performance Report released today.”

Mortgage Bankers Association – “Commercial/Multifamily Mortgage Debt Outstanding Down 1.3 Percent on Bank and CMBS Balances in 3Q 2010″ (12-14-10)

“The level of commercial/multifamily mortgage debt outstanding decreased in the third quarter, to $3.2 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data.”

Housing Wire – “Robo-signing hangover slows foreclosures in Western states” (12-14-10)

“Foreclosure sales in Arizona, California, Nevada, Oregon and Washington fell 38.7% in October and November, according to ForeclosureRadar.”

Los Angeles Times – “Survey: Consumers prefer small banks, credit unions” (12-14-10)

“Americans continue to prefer small banks and credit unions to larger institutions, according to an annual survey of satisfaction with financial services. Small banks held steady in this year’s American Customer Satisfaction Index, with a combined rating of 80 out of 100. Major banks scored mainly in the high 60s, with only Wells Fargo & Co. exceeding 70.”

CNN - “Obama’s mortgage mod plan is still lacking” (12-14-10)

“Last April, the Congressional Oversight Panel found the program to be struggling to get off the ground despite having been in action for a year and a half. The latest evaluation of the Home Affordable Modification Program (HAMP) came out Tuesday and the result was — same deal.”

San Francisco Chronicle - “Loss of estate tax leaves hole in state budget” (12-14-10)

“The proposed tax deal in Congress would fail to deliver about $2.7 billion in estate tax revenues California was counting on receiving this fiscal year and next, but some say the state should never have expected those revenues in the first place.”

Housing Wire – “Strategic defaulters opt to continue paying on second liens” (12-14-10)

“Borrowers who strategically default on their first mortgage often continue to pay on home equity lines of credit, according to a new white paper from two authors with the Philadelphia Federal Reserve.”

Housing Wire – “Mortgage fraud suspicious activity reports up 7% in first half of 2010″ (12-14-10)

“Lenders filed 35,135 suspicious activity reports indicating mortgage fraud in the first half of 2010, up 7% from the same period a year ago, according to the Financial Crimes Enforcement Network.”

Housing Wire – “Ginnie Mae earnings up 6% for fiscal year, issuance down” (12-14-10)

“Ginnie Mae earned $541.5 million in its fiscal year of 2010, up 6.2% from the previous year, but issuance dropped for the first time since 2006.”

Housing Wire – “LendingTree survey shows 40% of homeowners took first loan offer” (12-14-10)

“Roughly 40% of current homeowners surveyed by the online lender exchange LendingTree obtained just one mortgage loan quote before purchasing their home. LendingTree and the Harris Interactive surveyed 1,317 homeowners online, and of those 96% said they compare prices when shopping for anything – except mortgages. This, according to LendingTree, explains why only 28% surveyed feel confident they got the best possible deal on their loan.”

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.

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The Norris Group Real Estate News Roundup 11/16/10

Tuesday, November 16th, 2010

Today’s News Synopsis:

16,744 new and resale homes sold in Southern California during October. Builder confidence increased slightly this month, according to the NAHB. Sean O’Toole of ForeclosureRadar believes the foreclosure investigation will only have a brief effect on the market. FHA wrote $319 billion in new insurance in 2010.

In The News:

DQNews – “Southland Home Sales Fall, Prices Flat” (11-16-10)

“A total of 16,744 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 7.4 percent from 18,091 in September, and down 24.3 percent from 22,132 for October 2009, according to MDA DataQuick of San Diego.”

NAHB - “Builder Confidence Improves Slightly in November” (11-16-10)

“Builder confidence in the market for newly built, single-family homes improved slightly in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI rose one notch to 16 from a downwardly revised level of 15 in the previous month.”

Inman - “Realtor.com reclaims No.1 spot” (11-16-10)

“Realtor.com reclaimed the top spot as the most-visited real estate-related website in October, according to the latest report from Web metrics firm Experian Hitwise. The report’s data is based on a sample of 10 million U.S. Internet users.”

CNN - “Foreclosure mess prompts call for stress tests” (11-16-10)

“The Congressional Oversight Panel, created by Congress in 2008 to review the Treasury Department’s response to the financial crisis, issued a 125-page report detailing recent allegations that banks and loan servicers filed thousands of inaccurate documents in foreclosure cases across the country.”

Housing Wire – “ForeclosureRadar: dramatic decline in REO sales in October” (11-16-10)

“While 50 state attorneys general offices and 11 regulators are investigating the matter, Sean O’Toole, CEO of ForeclosureRadar, said the issue will only have a brief effect, and that the real problem will be new scammers cropping up.”

Housing Wire – “FHA 5 years away from 2% reserve ratio” (11-16-10)

“The Federal Housing Administration reported today that its capital reserve ratio will return to the 2% level mandated by Congress in 2015.”

Housing Wire – “Moody’s sees minimal risk to RMBS from robo signing, MERS litigaton” (11-16-10)

“The risks posed to residential mortgage-backed securities by the robo-signing debacle are extremely low to moderate and should have a limited impact, according to Moody’s Investors Service.”

Housing Wire – “One-third of fund managers see stronger economy in 2011″ (11-16-10)

“Investor strategy is slowly returning to a ‘normal level’ of risk-taking as 35% of fund managers now see the global economy strengthening next year. Only 15% reported the same sentiment last month, according to the latest Bank of America Merrill Lynch Survey of Fund Managers.”

Housing Wire – “Reducing mortgage principal? Count MGIC out” (11-16-10)

“The nation’s leading private mortgage insurer, Mortgage Guaranty Insurance Corp., sent an e-mail out late Monday to mortgage default servicing clients clarifying its policies regarding distressed borrowers.”

Housing Wire – “Ginnie Mae to disclose loss mitigation data on single-family pools” (11-16-10)

“Ginnie Mae will begin issuing reports on how many mortgages have gone through the loss-mitigation process for securitization investors.”

Housing Wire – “FHA mortgage insurance beats private market 25-fold: KBW” (11-16-10)

“The Federal Housing Administration wrote $319 billion in new insurance in 2010, more than 25 times the $12.4 billion in new insurance written by the top five private companies over the last year.”

Housing Wire – “Head of Chase mortgage: Foreclosure always last resort” (11-16-10)

“Foreclosure is always the last resort and least desired option for delinquent mortgages, and JPMorgan Chase uses all possible remedies prior to starting any foreclosure process, according to an executive in the bank’s home loan office. And in most cases, no one is even living in the property any longer.”

Bloomberg - “Bailout Panel Warns of Bank Mortgage Losses, Urges Stress Tests” (11-16-10)

“Regulators should conduct new stress tests on banks because legal challenges to foreclosures and uncertainties in the housing market could threaten the financial system, a congressional watchdog said.”

Bloomberg - “FHA Reserves Fall to Lowest on Record as Agency Boosts Capital” (11-16-10)

“The FHA’s capital-reserve ratio, which measures funds needed to cover projected losses, fell to 0.50 percent in the year ended Sept. 30 from 0.53 percent a year earlier, remaining below the federally mandated 2 percent minimum for a second straight year, the agency said today in a report to Congress.”

Looking Back:

One year ago, the Worker, Homeownership and Business Assistance Act was expected to provide approximately 33 billion dollars in tax cuts to real estate corporations. Statistics from Altera Real Estate showed that the most difficult Orange County market to find a new home in was Ladera Ranch. Foreclosure Radar reported that investors bought 337 homes and condos at foreclosure auctions in October.

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.

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The Norris Group Real Estate News Roundup 9/21/10

Tuesday, September 21st, 2010

Today’s News Synopsis:

Loan originations increased 25% from 2008, according to the Federal Financial Institutions Examination Council. The Commerce Department reports new home and apartment construction rose 10.5% last month to a seasonally adjusted annual rate of 598,000. Zillow claims interest rates fell again to 4.25%.

In The News:

San Francisco Chronicle - “More mortgage loans – first time since ’05 peak” (9-21-10)

“U.S. mortgage lending rose for the first time in four years in 2009 as a decline in borrowing rates spurred refinancings, according to regulatory data. The number of loans originated climbed 25 percent to 8.95 million from 2008, according to a report released Monday in Washington by the Federal Financial Institutions Examination Council. Refinancings rose 66 percent to 5.76 million, while loans to purchase homes dropped 11 percent to 2.78 million. Home-improvement and multifamily-dwelling loans also fell.”

Los Angeles Times – “Home construction jumps 10.5% in August” (9-21-10)

“Construction of new homes and apartments rose 10.5% in August from July to a seasonally adjusted annual rate of 598,000, the Commerce Department said Tuesday. That’s the highest level since April.”

Housing Wire – “Flattened Ginnie roll rates in 2Q could mean slower prepays: Credit Suisse” (9-21-10)

“The amount of Ginnie Mae-held loans rolling from 60 days to 90 days delinquent slowed in the second quarter, after spiking last year. According to research from Credit Suisse, this could signal slower involuntary prepayments going forward. The Ginnie Mae share of agency fixed-rate issuance dropped to 33% in August, from 36% in July. Its total 30-year gross and net issuances in August were $28.8 billion and $22.7 billion respectively, both down from $31.4 billion and $15.2 billion in July.”

Housing Wire – “CRE investment gearing up, but analysts don’t expect comeback until 2012″ (9-21-10)

“Trouble in the commercial real estate sector is not likely to be resolved until the economy picks up and job creation boosts demand for office, retail, hotel and other commercial properties, according to a Standard & Poor’s commentary released Monday. Even though the market research firm sees a trough in some CRE subsections, overall improvement isn’t expected until at least 2012.”

Housing Wire – “Zillow: 30-year, fixed rates reach another low at 4.25%” (9-21-10)

“Interest rates continue to set all-time lows, as Zillow reported its Mortgage Marketplace showed the average rate for a 30-year, fixed mortgage is currently 4.25%. The real estate information firm said the rate if down seven basis points from 4.32% the week earlier and at the lowest level since the report launched in April 2008.”

Housing Wire – “Home sales level off in August after recent plunge: RE/MAX” (9-20-10)

“August home sales dropped 0.5% after plummeting in July, according to real estate franchise RE/MAX. Home sales are still down 17.9% from August of last year. While some real estate agents reported increased showings, few have translated into closed transactions after the expiration of the homebuyer tax credit at the end of April.”

Bloomberg - “Fed Under Pressure Amid Confusion Over New Easing” (9-21-10)

“Federal Reserve officials are under pressure to avoid creating confusion among investors about any new effort to spur the U.S. recovery. The Federal Open Market Committee, which meets today, triggered a stock selloff with its last statement on Aug. 10 as investors took it as a signal the economy will falter. The Standard & Poor’s 500 Index tumbled 7.1 percent during the two weeks following the statement after reaching a three-month high on Aug. 9. The MSCI World Index fell 7.3 percent.”

Orange County Register – “CA. mortgage defaults climb 4th month in row” (9-21-10)

“Notices of default filings in California, the first step in the foreclosure process, climbed for the 4th month in a row in August, up by 16.6% from July and 16% from August, 2009, ForeclosureRadar reports. Homes in the state that went back to lenders were up 20% over July and 0.8% from August last year. Foreclosure sale cancellations were down 11%. The inventory of bank-owned homes went up 3.63% from last month and 8.28% year over year.”

Orange County Register – “Fed keeping cheap money policy” (9-21-10)

“the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls. Housing starts are at a depressed level. Bank lending has continued to contract, but at a reduced rate in recent months.”

Inman - “Survey: Home-price outlooks sour in Q3″ (9-21-10)

“Ninety percent of real estate agents and brokers expect home prices to either fall or stay the same over the next six months, according to a survey by online real estate marketing site HomeGain. HomeGain conducted the survey from Sept. 7-14, with participation from more than 1,100 real estate agents and brokers and 2,600 homeowners nationwide.”

Looking Back:

One year ago, the federal government claimed it had plans to “tinker” with mortgage interest reporting. First American estimated that California had approximately $30 billion dollars worth of bad home loans. A review of over 24 million credit files showed that people with good credit scores were more likely to ‘strategically default’. Lennar Corp. forecasted a profitable year, despite a bad 3rd quarter.

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

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