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

Thursday, July 15th, 2010

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thursday, June 24th, 2010

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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The Norris Group Real Estate News Roundup 6/21/10

Monday, June 21st, 2010

Today’s News Synopsis:

436,000 people have dropped out of the mortgage modification program since March 2009. A survey from Grant Thornton LLP shows that 45% of bankers expect economic conditions to improve over the next 6 months. According to CoreLogic, national housing prices increased 2.6% in April 2010 compared to April 2009. Analyst Meredith Whitney believes the U.S. housing market will experience a second recession.

In The News:

Los Angeles Times – “Borrowers face foreclosure after Obama loan assistance program fails to provide help” (6-21-10)

“More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. That’s more than the 27 percent who have managed to have their loan payments reduced to help them keep their homes. Last month alone, 150,000 borrowers left the program — bringing the total to 436,000 who have exited since it began in March 2009.”

Housing Wire – “More Bankers Expect Economic Improvement before 2011: Grant Thornton” (6-21-10)

“The majority of bankers are optimistic about the US economy in coming months, with 45% expecting conditions to improve over the next six months, according to a survey by US audit firm Grant Thornton LLP. It marks a significant improvement over the same survey six months earlier, which found 24% of respondents expected conditions to improve.”

Housing Wire – “SEC Charges Investment Advisor with CDO of Mortgage-Backed Securities Fraud” (6-21-10)

“The Securities and Exchange Commission is charging Thomas Priore, owner and president of ICP Asset Management, with the fraudulent management of investment products tied to the mortgage finance markets. It is alleged that ICP and three affiliated firms misrepresented four multi-million-dollar collateralized debt obligation (CDO) platforms backed by mortgage securities (MBS). The SEC claims the CDOs lost tens of millions of dollars, while Priore collected tens of millions of dollars in advisory fees and undisclosed profits at the expense of their clients and investors.”

Housing Wire – “Total Number of HAMP Permanent Modifications Passes 340,000″ (6-21-10)

“Servicers participating in the Home Affordable Modification Program (HAMP) conducted 340,459 permanent modifications through May 2010 since the program launched in March 2009, up from 299,092 through April, according to the Treasury Department. The Treasury launched HAMP to provide incentives to servicers for the modification of mortgages on the verge of foreclosure. In order to receive a permanent modification, borrowers must make three monthly payments during the trial period and submit all documentation.”

Housing Wire – “Architecture Firms See Business Increase with Demand for Smaller Houses: AIA” (6-21-10)

“AIA conducted a survey of 500 architecture firms that concentrate practices in the residential sector. AIA also found that American homebuyers are showing greater interest in smaller homes and lot sizes. According to the survey, the economic downturn and growing concerns over rising utility costs have created a demand for smaller homes and lot sizes.”

Housing Wire – “CoreLogic Home Price Index Up 2.6% in April” (6-21-10)

“National housing prices increased 2.6% in April 2010 compared to April 2009 in the CoreLogic (CLGX: 18.335 -2.16%) monthly home price index (HPI). It’s the second month in a row that prices have increased from the same month one year ago. The April increase comes after a 2.3% year-over-year increase in March. The HPI was upwardly revised from an original projection of a 1.7% increase for March.”

Bloomberg - “Whitney Says She Sees ‘Double Dip’ in Housing Market” (6-21-10)

“The U.S. housing market will experience a second recession, forcing banks to post additional loan-loss reserves, analyst Meredith Whitney said.”

Orange County Register – “House price per sq. ft. highest in 2 years” (6-21-10)

“The median price per square foot paid to buy an Orange County house hit $296.32 in May, the highest that measure has been since August 2008, figures from MDA DataQuick show. The price per square foot for an existing, single-family home has been on an upsurge after bottoming out in January 2009, increasing from the month before in 10 of the past 13 months.”

Orange County Register – “5 O.C. hot spots for home-price cuts” (6-21-10)

“As of June 1, 29% of homes on the market in Orange County have seen at least one price reduction, according to online home tracker Trulia.com. Nationwide, 22% of listings had at least one price trim, with the average reduction 10% off the original asking price.”

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

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The Norris Group Real Estate News Roundup 6/17/10

Thursday, June 17th, 2010

Today’s News Synopsis:

According to the CBIA, sales in new-home communities of 10 units or more were 32 percent below April 2009. MDA DataQuick reports 8,264 homes closed escrows in the nine-county Bay Area last month.  Statistics from Freddie Mac show the average 30-year frm rate increased to 4.75 percent this week. The number of suspected mortgage fraud activities reported to law enforcement grew 5% during fiscal year 2009.

In The News:

CBIA - “California New-Home Market Down in April, CBIA Announces” (6-17-10)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 32 percent below April 2009. During April, 2,203 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 3,218 a year earlier. Sales of single-family homes were down by 34 percent, while sales of townhomes and ‘plexes’ – duplexes, triplexes, etc. – were off by 33 percent and sales of condominiums were 22 percent lower than a year ago.”

DQNews - “Bay Area $500K-Plus Home Sales Jump; Median Price Tops $400K” (6-17-10)

“Sales rose across the Bay Area last month in many mid- to high-end neighborhoods, helping to push the median sale price over $400,000 for the first time in 21 months. But as tax credits, low mortgage rates and an ample supply of homes for sale fueled the $500,000-plus market, sales fell in many affordable inland areas where investors and first-time buyers faced a dwindling inventory of low-cost foreclosures, a real estate information service reported. Last month a total of 8,264 homes closed escrows in the nine-county Bay Area, up 18.0 percent from 7,003 in April and up 11.0 percent from 7,447 in May 2009, according to MDA DataQuick of San Diego.”

Wall Street Journal – “Shadow Problem: Home Price Declines May Land in Cities That Largely Avoided Them” (6-17-10)

“A new report shows that the ’shadow inventory’ of homes, with delinquent mortgages that have yet to go through the foreclosure process, is growing fastest in areas that have so far avoided the biggest home-price declines, according to a report by ratings agency Standard & Poor’s. Mortgage companies could be forced to reduce their prices on these foreclosued homes as they work through that supply, and as more of those homes sell, that could continue to put pressure on prices. At the top of the list: the New York City area, where at the current rate it would take 103 months to clear the shadow inventory of loans that are more than 90 days delinquent or in foreclosure. That’s nearly 3.5 times the national average.”

San Francisco Chronicle - “Freddie Mac: Mortgage rates up from yearly low” (6-17-10)

“Rates on 30-year fixed mortgages backed off from yearly lows this week, but still remain historically cheap. Mortgage finance company Freddie Mac says the average rate rose to 4.75 percent, up from 4.72 percent last week. The rate hit 4.71 percent in December, the lowest since Freddie Mac began keeping records in 1971.”

Housing Wire – “Suspected Mortgage Fraud Reports to FBI Grew 5% in 2009″ (6-17-10)

“The number of suspected mortgage fraud activities reported to law enforcement grew 5% during fiscal year 2009 to 67,190, according to the latest yearly mortgage fraud report from the Federal Bureau of Investigation (FBI). FBI mortgage fraud pending investigations rose 71% from fiscal year 2008, while Department of Housing and Urban Development – Office of Inspector General (HUD-OIG) pending investigations rose 31% in the same time. Of all pending FBI mortgage fraud investigations during FY 2009, 66% involved dollar losses totaling more than $1m.”

Housing Wire - “55-75% of HAMP Mods Could Re-Default under Fitch Projections” (6-17-10)

“As of May 2010, Fitch noted that roughly 15% of non-agency RMBS loans by balance — including nearly 35% of RMBS subprime loans — received at least one modification. This is up from 10% and 25% respectively in September 2009. Fitch currently expects anywhere from 55% to 75% of modified loans within RMBS to re-default after 12 months.”

Bloomberg - “Mortgage-Fraud Crackdown in U.S. Brings 485 Arrests” (6-17-10)

“Authorities arrested 485 people since March in the largest nationwide mortgage-fraud crackdown of its kind, the U.S. Justice Department said. During the enforcement effort, 1,215 criminal defendants responsible for $2.3 billion in losses faced some type of legal action, the department said. The crackdown, dubbed Operation Stolen Dreams, also included 191 civil cases resulting in the recovery of more than $147 million.”

Inman - “5 real estate opportunities” (6-17-10)

“In 2001, 42 percent of homebuyers were first-timers. That number dropped to 36 percent at the peak of the seller’s market in 2006. Today, first-time buyers represent 47 percent of all buyers, the highest percentage in this century. Opportunity: To take advantage of this trend, actively prospect for listings in first-time-buyer areas. To determine which areas are the best to prospect, watch the sales board in your office or the sales report from your local multiple listing service.”

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

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The Norris Group Real Estate News Roundup 6/14/10

Monday, June 14th, 2010

Today’s News Synopsis:

Christopher Cagan from First American predicts a dip in housing prices in the near future. A study from Harvard University seems to show that high unemployment is fueling the foreclosure crisis. Christopher Thornberg of Beacon Economics believes the recession is currently over, but he expects economic conditions to get worse over the next two years. REIS Inc predicts U.S. apartments may lead a rebound in commercial real estate.

In The News:

Orange County Register – “‘Double dip’ decline seen for housing” (6-13-10)

“In the short to near term, I expect a double dip.  This is the logical aftermath of the sugar shot from the Federal first time buyer tax credit.  It borrowed buyers from the future, and we are now going into that future.  Also we are not too far from the end of the traditional SoCal buying season.  I have already seen asking prices reduced 5% or so in May from April.”

Wall Street Journal – “Trading Down: Can It Still Bankroll Your Retirement?” (6-13-10)

“Trading down to a smaller home is a retirement-planning staple. According to an April study by the Society of Actuaries, 20% of not-yet retirees say they plan to downsize after the last child leaves the nest.”

Los Angeles Times - “Home shortages could develop as recovery unfolds” (6-13-10)

“A housing deficiency isn’t a sure thing, but the potential is certainly there, says David Crowe, chief economist at the National Assn. of Home Builders, who paints a rather ominous scenario in which house and apartment builders won’t be able to keep up with the demand. Wherever the new households come from — adult children moving out for the first time or leaving the nest a second or third time after returning to Mom and Dad’s to weather the economic storm, roommates uncoupling and going their separate ways or young couples starting families — most of them are typically renters. Therefore, the multifamily sector is apt to feel the pinch first, if only because it takes so much longer to build apartments than houses.”

Bloomberg - “U.S. Housing Market Recovery Dependent on Jobs Growth, Harvard Report Says” (6-14-10)

“Job growth will be the key factor in whether the U.S. real estate market can extend a recovery after the end of the federal homebuyer tax credit, according to a Harvard University study. High unemployment is fueling the foreclosure crisis and discouraging the household formation that drives property demand, according to the State of the Nation’s Housing report issued today by Harvard’s Joint Center for Housing Studies.”

Housing Wire – “Monday Morning Cup of Coffee” (6-14-10)

“The Federal Bureau of Investigation (FBI) is preparing a nationwide crackdown on mortgage fraud, with arrests expected to count in the hundreds, beginning as early as this week, the Financial Times reported.”

Housing Wire – “Negative GDP Growth in Q3? Really?” (6-14-10)

“Thornberg essentially noted in his speech that while the recession is over, for now, we’re not there yet in terms of a sustainable economic recovery. He exhorted attendees to enjoy 2010, as he expects the year to be a relatively good one compared to what we may see in 2011 and 2012.”

Housing Wire – “Subprime Mortgage Performance Improving as Delinquencies Drop” (6-14-10)

“The performance of historical subprime mortgages is improving according to two separate reports from Moody’s Investors Service and the Royal Bank of Scotland (RBS). And the rate of homeowners behind on their subprime mortgage is lower across all levels of days past due, albeit at different speeds.”

Housing Wire – “Fiserv Sees Buyer ‘Optimism’ Behind Home Price Increases” (6-14-10)

“Home prices trended up in more than 40% of metropolitan areas (155 of 384 markets) in Q409, including markets in California, Ohio, Michigan and Washington DC, according to analysis of price trends by financial data services provider Fiserv. On average, home prices were down 2.5% in Q409 from the year-ago quarter, which Fiserv noted could be due to continued high unemployment levels, rising interest rates and a high volume of distressed property in markets like Florida, Arizona and Nevada. The data studied for the quarterly report is based on the Fiserv Case-Shiller Indexes.”

Bloomberg - “Equity Residential May Start California Project Within a Year” (6-14-10)

“Equity Residential, the largest publicly traded U.S. apartment landlord, may start building a new development in California within the next year, Chief Executive Officer David Neithercut said. U.S. apartments may lead a rebound in commercial real estate as the economy adds jobs, property research firm Reis Inc. said in May. Vacancies probably will peak at 8.2 percent in 2010 and start to decline in 2011.”

Orange County Register – “Portola Hills homes quickest to sell” (6-14-10)

“The ‘hardest’ O.C. town to find a home to buy in terms of ‘market time’ (supply of homes for sale vs. new purchase deals inked in past month) is Portola Hills at 1.3 months to theoretically sell all for-sale homes at the current buying pace. Or, looking at it another way: quickest to sell. A year ago, this town was at 0.6 months.”

Orange County Register – “Home demand off 20% without tax break” (6-14-10)

“March and April’s surge due to the housing credit robbed May and June of normal activity. There is nothing cyclical about the recent swings in demand, but it is making its way back to normal. It should be back on track by July. Demand, the number of new pending sales over the prior month, decreased by 136 in the past two weeks and now totals 3,167. That is after a 603 home drop two weeks ago. For the first time since March 2008, demand is less than the prior year with 485 fewer pending sales.”

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

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The Norris Group Real Estate News Roundup 6/9/10

Wednesday, June 9th, 2010

Today’s News Synopsis:

According to the MBA, mortgage loan application volumed decreased by 12.2 percent from last week. Economist Dr. Christopher Thornberg believes that government intervention is simply delaying inevitable declines in the housing market. Interthinx reports fraud risk in the national mortgage industry rose 4% in Q110.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (6-9-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 4, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 12.2 percent on a seasonally adjusted basis from one week earlier. This week’s results include an adjustment to account for the Memorial Day holiday.  On an unadjusted basis, the Index decreased 21.1 percent compared with the previous week.”

Bloomberg - “Bank of America May Lead Banks in Home-Equity Losses” (6-9-10)

“Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. may lead 20 publicly traded U.S. banks that charge off as much as $40.9 billion on home-equity investments this year, Fitch Ratings said. In the worst-case scenario considered by Fitch, the three banks may write off a combined $31.2 billion as loans from the height of the housing market sour, analysts John Mackerey and Ken Ritz wrote in a report today. The 20 banks on the list, which includes only lenders with above-average exposure to the business, may charge off a total of as much as $76.7 billion in the two years through 2011, the New York-based rating company estimated.”

Housing Wire – “Christopher Thornberg: Short-Term Recovery Comes at Long-Term Cost” (6-9-10)

“While government intervention is boosting the US economy, including the housing market, it’s only delaying inevitable future declines in growth, Christopher Thornberg, an economist and the founding principal of San Rafael, Calif.-based Beacon Economics, said during a keynote address at REO Expo, currently underway in Dallas.”

Housing Wire – “RealtyTrac: 3.8m Homes to Receive Foreclosure Filing in 2010″ (6-9-10)

“An estimated 3.8m households will receive a foreclosure filing in 2010, said Rick Sharga, senior vice president at the online foreclosure marketplace RealtyTrac, in a speech at REO Expo.”

Housing Wire – “Bank of America Puts Short Sales Ahead of REO” (6-9-10)

“Bank of America, one of the largest lenders in the U.S., has instituted a policy of liquidating as many assets saddled with defaulted loans as possible before repossession, said Matt Vernon, the short sale and REO executive at BofA. Vernon took the position at BofA in February. He has since announced plans to add 1,000 employees to the short sale staff. BofA currently holds more than 477,000 loans eligible for the Home Affordable Modification Program (HAMP), and has provided more than 600,000 modifications through HAMP and its own programs.”

Housing Wire – “Mortgage Fraud Risk Up 11% in Interthinx Yearly Index” (6-9-10)

“Fraud risk in the national mortgage industry rose 4% in Q110 from Q409, and 11% from the year-ago period, according to the latest report from mortgage software developer Interthinx.”

Realty Times – “Managing HOA Construction” (6-9-10)

“Your homeowner association may be faced with a large siding, dryrot or structural repair. These projects often involve a number of disciplines like carpentry, electrical, plumbing and engineering that must be properly integrated for a satisfactory end result. When it comes to accomplishing complex renovation projects, it makes sense to use the services of a professional Construction Manager (CM).”

Looking Back:

One year ago, The U.S. Department of Housing and Urban Development (HUD) announced on May 29 that the Federal Housing Administration (FHA) will allow state housing finance agencies to provide second mortgages ‘monetizing’ the tax credit. Real Estate Econometrics estimated that rates on commercial mortgages would reach 4.1 percent by the end of 2009. 10 banks won U.S. Treasury approval to buy back $68 billion of government shares.

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

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The Norris Group Real Estate News Roundup 6/8/10

Tuesday, June 8th, 2010

Today’s News Synopsis:

A survey from the NFCC shows that only 23 percent of Americans consider strategic default to be acceptable when underwater on a mortgage. Starting today, Real Estate Disposition is auctioning more than 350 bank-owned foreclosures in California. According to IAS, national home prices were up 0.9% in April from March. An executive from RealtyTrac believes U.S. foreclosure activity will not stabilize until late 2011.

In The News:

Inman - “Builders’ incentives to buyers under scrutiny” (6-8-10)

“Federal regulators are once again scrutinizing incentives tied to the use of homebuilders’ affiliated mortgage and title companies, looking for evidence that they cost consumers more than they’re worth, help inflate appraisals, and lower underwriting standards. The Department of Housing and Urban Development (HUD) in 2008 proposed a ban on such incentives, but backed down last year after homebuilders sued over the proposed rule change”

Housing Wire – “Strike Strategic Default: Survey Finds Mortgage Payments Remain Borrower Priority” (6-8-10)

“Less than one-quarter, or 23%, of consumers recently polled indicated that opting for foreclosure is justifiable when a borrower is underwater, owing more on a home than its worth, according to the National Foundation for Credit Counseling (NFCC). This idea of strategic default, when a borrower with the ability to pay chooses not to remain current on payments, was unacceptable to another 15% of survey respondents who said no circumstances justify walking away from the financial obligation.”

Housing Wire – “CoreLogic Adds Foreclosure Data to Distressed Property-Listing Web Site” (6-8-10)

“Data analytics provider CoreLogic (CLGX: 19.68 -1.01%), recently spun off by First American Financial (FAF: 13.51 -0.44%), will provide foreclosure data and property information to the Yahoo! Real Estate foreclosure service, the company said. The partnership adds listings of various stages of foreclosure and real-estate-owned (REO) properties to Yahoo! Real Estate’s online database of distressed properties including foreclosure and pre-foreclosure listings.”

Housing Wire - “REDC to Auction 350 Bank-Owned Foreclosures” (6-8-10)

“Beginning today, Real Estate Disposition (REDC) is auctioning more than 350 bank-owned foreclosures in Northern and Southern California, including 76 properties. Through June 12, REDC will auction more than 70 Northern California properties, including 34 occupied homes. An online-only auction, the offering ends at noon Central.”

Housing Wire – “Despite Narrow Monthly Gain, House Prices Fall 2.8% from 2009: IAS” (6-8-10)

“National house prices were up 0.9% in April from March, narrowed from the previous monthly gain of 1.1%, according to the latest data from Integrated Asset Services (IAS). The IAS house price index remains 2.8% below levels seen in the same time last year — widened from the 1.9% yearly depreciation in March. Additionally, the index is down 23.9% from its July 2007 peak.”

Bloomberg - “Four Seasons Sees Rates Returning to Peak Levels in Some Areas” (6-8-10)

“Four Seasons Hotels Inc. expects nightly rates at some of its properties will climb to the peak levels of 2008 by the end of this year as demand for luxury accommodation picks up, President Kathleen Taylor said.”

Orange County Register – “Foreclosures to be high for 18 more months” (6-8-10)

“Foreclosure activity in America won’t stabilize until late 2011, an executive for Irvine-based Realty Trac told a group of real estate writers. And with only three out of eight bank-owned homes on the market, and two-thirds of those under-valued homes yet to hit, the U.S. housing market still faces years of low prices.”

Orange County Register - “Where housing zip lives: Aliso to Yorba” (6-8-10)

“Newport Beach communities had the most housing ZIP in the first quarter. Santa Ana neighborhoods the least homebuying momentum. Our Zippy rankings weigh pricing and sales momentum — plus foreclosure frequency — as measured by DataQuick stats.”

Orange County Register – “3 charged in foreclosure ‘rescue’ case” (6-8-10)

“Gregory Flores, who managed All Fund Mortgage branches in Anaheim Hills and Murietta, was arrested in Roswell, N.M. last week. Also facing wire fraud charges charges in the case are Sheri Gale, who was a loan officer for All Fund, and Amy Hall, a former loan processor for the company. They have not been arrested but are expected to turn themselves in shortly, Assistant U.S. Attorney Sean Lokey says.”

Realty Times – “Mortgage Rates Touched New Low Friday” (6-8-10)

“The decline in mortgage rates stemmed from a big increase in mortgage-backed securities prices Friday. MBS prices, which drive mortgage rates in the opposite direction, gained +21/32 (FNMA 30-yr 4.5 at 102.23) on less than spectacular jobs numbers and more European debt concerns, this time in Hungary. Typically when we see significant declines in stocks as we have lately, mortgage rates improve.”

Wall Street Journal – “Baker: Turn Fannie, Freddie Into Government-Owned Corporations” (6-8-10)

“Want an easy, simple solution to Fannie Mae and Freddie Mac? Take the mortgage-finance giants, which have been effectively nationalized, and turn them into government-owned corporations, says Dean Baker, the co-director of the Center for Economic and Policy Research, a liberal think tank. In an op-ed in USA Today, Mr. Baker makes the case that nationalizing Fannie and Freddie isn’t as radical as it sounds. For one, both companies are effectively owned and operated by the government today.”

Looking Back:

One year ago, an AP test showed that recession “stress” decreased 5 percent from March to April. Robert Shiller estimated that home prices would likely continue to decline for years to come. JP Morgan estimated that U.S. home foreclosures would probably total 6.4 million by mid-2011.

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

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The Norris Group Real Estate News Roundup 6/1/10

Tuesday, June 1st, 2010

Today’s News Synopsis:

The head of CoreLogic believes the real estate market has bottomed.  According to the Commerce Department, construction spending increased 2.7 percent last month. LPS reports the number of loans 90 or more days past due — including pre-sale foreclosure — declined by nearly 3% to just over 4.07m from nearly 4.19m in March. According to Altera Real Estate, housing demand has dropped by 17%.

In The News:

New York Times – “Owners Stop Paying Mortgages, and Stop Fretting” (5-31-10)

“A growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by. This type of modification does not beg for a lender’s permission but is delivered as an ultimatum: Force me out if you can. Any moral qualms are overshadowed by a conviction that the banks created the crisis by snookering homeowners with loans that got them in over their heads.”

Contra Costa Times – “Ponzi scheme cases on rise in Bay Area” (5-29-10)

“Ponzi and similar financial frauds have grown by half nationwide over the past few years. The Peter-to-pay-Paul schemes, in which investor money is used to pay off other investors, turn up more often now largely because the economy sapped the capital needed to keep them afloat, said Bill Denny, who prosecuted Alameda County’s case against Moreland. Nationally, the number of FBI investigations has risen from 389 in 2007 to 651 last year, said agency spokesman Bill Carter. Agents assigned to such cases have risen from 55 to 85.”

Orange County Register – “Real estate giant: Housing’s hit bottom” (5-29-10)

“Values have improved. Investors are back in the market, and they’ve picked up some low-value properties. That may be good. It may be bad. But it means we have hit bottom.”

Sign on San Diego – “Economy strengthens behind building, manufacturing” (6-1-10)

“The economic recovery gained strength on the biggest rise in construction spending in nearly a decade and the 10th straight month of expansion for the manufacturing sector. Temporary government incentives fueled most of the construction spending increases in April. Industry spending rose 2.7 percent with gains in all major sectors, the Commerce Department said Tuesday.”

Los Angeles Times – “Bill would aid depositors at failed IndyMac Bank” (6-1-10)

“About 8,800 IndyMac depositors lost a total of nearly $266 million because Congress didn’t raise the FDIC insurance limit to $250,000 until later that year. A bill introduced Thursday by Reps. David Dreier (R-San Dimas) and Jane Harman (D-Venice) would retroactively extend the $250,000 ceiling to deposits at banks that failed beginning Jan. 1, 2008. The largest of those by far was IndyMac.”

Housing Wire – “More than 7m Distressed Loans Weigh on Early Signs of Housing Stabilization” (6-1-10)

“Early signs of stabilization in delinquent and foreclosure inventories were overshadowed by an elevated pool of more than 7m distressed loans by the end of April, according to the latest mortgage report by Lender Processing Services (LPS: 33.60 -0.71%). The year-over-year growths in delinquent and foreclosure volumes have leveled off in recent months, with the number of loans 90 or more days past due — including pre-sale foreclosure — declining by nearly 3% to just over 4.07m from nearly 4.19m in March, according to the report.”

Orange County Register – “Demand for O.C. homes tumbles 17%” (6-1-10)

“Only time will tell, but the Orange County housing market has gone over a speed bump and has slowed considerably. … Over the past month, housing demand has dropped by 17%. Demand, the number of new pending sales over the prior month, decreased by 676. After dropping 5% a couple of weeks ago, the dip in demand has gained a bit of momentum. This could be the result of the end of the tax credit, with first time home buyers rushing to purchase with the end of the tax credit on April 30th of last month.”

Orange County Register – “Bank price on some homes: ‘Unrealistic’” (6-1-10)

“Foreclosures have increased from 375 at the beinning of the year to 533 today, a 42% increase. Short sales have increased from 2,180 to 2,458, a 13% increase. There have been more foreclosures to hit the market thus far this year, but there are reports from the trenches that many banks have placed some of their foreclosed homes on the market at unrealistic levels and are not moving. Do not get me wrong, distressed sales are still on fire. It’s like going from scorching 105-degree temperatures to 95 degrees, still hot.”

Inman - “3 responses to seller objections” (6-1-10)

“currently there are 10 months of inventory on the market in your price range and location. This means that you have a 10 percent chance of selling this month. The probability that you will not sell is 90 percent.”

Looking Back:

One year ago, the U.S. Department of Housing and Urban Development (HUD) announced that first-time homebuyers using FHA-approved lenders could get an advance on the $8,000 tax credit created by the stimulus package. Orange County home sales increased by 14 percent from 2008 to 2009. TransUnion.com said the number of borrowers at least two months behind on their mortgage increased to 5.22 percent.

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

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The Norris Group Real Estate News Roundup 5/20/10

Thursday, May 20th, 2010

Today’s News Synopsis:

According to MDA DataQuick, a total of 7,003 homes closed escrows in the nine-county Bay Area last month. CBIA reports that California families earning the median-income could have afforded 60.8 percent of the new and existing homes that were sold during the first quarter of 2010. Statistics from Freddie Mac show 30-year fixed-rate mortgage decreased 4.84 percent this week. CoreLogic predicts average national home prices will fall 0.5 percent in the next 12 months.

In The News:

DQNews - “Mixed results for Bay Area April home sales” (5-20-10)

“Last month a total of 7,003 homes closed escrows in the nine-county Bay Area, up 0.2 percent from 6,992 in March but down 1.9 percent from 7,139 in April 2009, according to MDA DataQuick of San Diego. On average, Bay Area sales have risen 4.2 percent between March and April each year since 1988, when DataQuick’s statistics begin. Last month’s sales tally was 24.5 percent below the April average of 9,278 sales since 1988, and was the second-lowest for an April since 1995.”

CBIA - “California Housing Affordability Increases in First Quarter, CBIA Announces” (5-20-10)

“Housing affordability in California increased overall in the first quarter of 2010, but 13 of the state’s 28 metropolitan areas included in the report saw decreases, the California Building Industry Association said today.  On a statewide basis, the HOI found that a family earning the median-income could have afforded 60.8 percent of the new and existing homes that were sold during the first quarter, up from 56.4 percent in the fourth quarter of 2009. The report also found that California is now home to seven of the top ten least affordable markets in the nation.”

CNN - “Problem bank list hits 775″ (5-20-10)

“The government’s list of troubled banks climbed to its highest level since 1992 in the first quarter, although the pace of growth moderated, according to a government report published Thursday. The numbers, published as part of a broader survey on the nation’s banking system by the Federal Deposit Insurance Corporation, revealed that the number of banks at risk of failing climbed to 775 during the first quarter.”

Orange County Register – “Mortgage rate at 5-month low” (5-20-10)

“30-year fixed-rate mortgage averaged 4.84 percent — down from last week when it averaged 4.93 percent and the lowest since Dec. 10. Last year at this time, the 30-year fixed averaged 4.82 percent.”

Inman - “4 markets where prices will fall hardest” (5-20-10)

“National home prices were up 1.7 percent in March when compared to a year ago, but will probably give back some of those gains in the year ahead with the expiration of the federal homebuyer tax credit, data aggregator CoreLogic said in releasing its latest home-price index. While 51 out of the 100 largest markets saw year-over-year price appreciation in March — up from 42 markets in February — CoreLogic predicts average national home prices will fall 0.5 percent in the next 12 months.”

Housing Wire – “New Survey Finds 59% of Homeowners Would Not Consider Strategic Default” (5-20-10)

“Of those homeowners surveyed by Harris Interactive, 59% said they would not consider walking away from their mortgage no matter how far underwater they sank. Harris conducted the survey of more than 2,500 adults, including 1,690 homeowners from May 10-12. The survey was conducted for the online foreclosure marketplaces, Trulia.com and RealtyTrac.”

Housing Wire – “FBI Mortgage Fraud Investigations Jump 400% in Five Years” (5-20-10)

“FBI investigations of mortgage fraud increased 400% in 2009, compared with five years earlier, according to an Office of Thrift Supervision (OTS) report on fraud and insider abuse (download here). The FBI investigated more than 2,100 mortgage fraud cases in 2009. The OTS said at least 63% of all pending FBI mortgage fraud investigations during fiscal year 2008 involved dollar losses of more than $1m each.”

Bloomberg - “Mortgage-Bond Yields Guiding Loans Decline to Six-Month Low” (5-20-10)

“Yields on Fannie Mae and Freddie Mac mortgage securities that guide home-loan rates fell to the lowest in almost six months, as the response of European authorities to the sovereign-debt crisis drove investors to the relative safety of U.S. government-related debt. Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds tumbled 0.10 percentage point to 4.05 percent as of 9:55 a.m. in New York, down from 4.67 percent on April 5 and the lowest since Nov. 30, according to data compiled by Bloomberg.”

Bloomberg - “Idle Capacity in U.S. Economy Keeps Fed Asset Sales on Hold” (5-20-10)

“Officials led by Chairman Ben S. Bernanke raised their forecasts for growth this year while predicting the rebound will be slower than past recoveries from deep recessions as consumers contend with elevated unemployment and a decline in home values. Some expressed concern the Greek debt crisis could shake U.S. financial markets, curbing growth.”

Looking Back:

One year ago, the NAR predicted that commercial real estate would remain week for the remainder of 2009. The House of Representatives voted 367 to 54 to pass the Helping Families Save Their Homes Act. Toll Brothers Inc., the largest U.S. builder of luxury homes, said fiscal second-quarter revenue fell 51 percent.

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

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The Norris Group Real Estate News Roundup 4/28/10

Wednesday, April 28th, 2010

Today’s News Synopsis:

The MBA reports mortgage loan application volume decreased 2.9 percent last week. The House Financial Services Committee approved a bill to increase capital reserves in the Federal Housing Administration (FHA) and reduce risks to its insurance fund. Republicans voted against the Restoring American Financial Stability Act of 2010. New HUD regulations require all new lender applicants must hold at least $1 million.

In The News:

California Builder – “Selecting the Right Paint Color for Your Home” (4-28-10)

“A successful color scheme is a scheme that is pleasant to live with and reflects the moods and personalities of the people living in it. Creating living areas that allow us to rest and relax are just as important as creating other places that invigorate or stimulate us. Light and color affect our senses. Bedrooms, living rooms and kitchens all serve different needs.”

Mortgage Bankers Association – “Purchase Applications Increase, Refinance Applications Decline in Latest MBA Weekly Survey” (4-28-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 23, 2010.  The Market Composite Index, a measure of mortgage loan application volume decreased 2.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 1.9 percent compared with the previous week.”

Housing Wire – “House Committee Approves Bill to Tighten FHA Approval Standards” (4-28-10)

“The House Financial Services Committee approved a bill to increase capital reserves in the Federal Housing Administration (FHA) and reduce risks to its insurance fund. The bill will now move to the House floor for debate. The bill would amend the National Housing Act by increasing the cap of annual premium payments collected by the FHA from 0.50% to 1.5%. It would also hold approved lenders accountable for the FHA loans they write. Under the new bill, if the FHA pays out a claim on a mortgage it finds did not meet its underwriting standards or detects fraud involved with the origination of the loan, it could require that lender to pay reparations for the loss to the insurance fund.”

Housing Wire – “First American Title Launches AgentFirst iPhone, iPad Application” (4-28-10)

“First American Title Insurance launched a new application for the iPhone, iPad and iPod Touch devices that provides mobile access to real estate data including property information and characteristics, historic sales information, and tax information. First American Title Insurance said the data included in the AgentFirst app covers 97% of all US real estate transactions.”

Housing Wire – “Financial Reform Blocked in Senate, Again” (4-28-10)

“The Senate reconsidered S. 3217, the Restoring American Financial Stability Act of 2010, again today after Senate Republicans voted against debating the legislation on Monday. Once more, Republicans voted against debating the legislation today. The bill would create a consumer financial protection agency, impose a risk retention requirement on banks that sell and securitize mortgage loans, and bring greater transparency to the derivatives market.”

Housing Wire – “New FHA-Lender Restrictions Will Wreak Havoc: K&L Gates” (4-28-10)

“HUD finalized new regulations earlier in April that increase the net worth requirements of FHA-approved lenders and make these businesses liable for the oversight of mortgage brokers. Since, 1993, FHA required approved lenders to hold a net worth of at least $250,000. Effective immediately, all new lender applicants must hold at least $1m.”

Bloomberg - “‘Smart Capital’ Backs Real Estate, Zimpleman Says” (4-28-10)

“Principal Financial Group Inc. Chief Executive Officer Larry Zimpleman, whose firm owns or manages more than $30 billion of real estate assets, said new buyers are entering the U.S. commercial market and pushing up prices.”

Inman - “CalREDD announces plans to merge with MRMLS” (4-28-10)

“The California Association of Realtors today announced that calREDD, a service of CAR’s CALMLS subsidiary, plans to merge with Multi-Regional Multiple Listing Service Inc. (MRMLS) to form a 33,000-member multiple listing service that serves 22 Realtor associations.”

Looking Back:

One year ago, A survey from the NAHB showed that most baby boomers were planning to stay in their current residence for the rest of their lives. The S&P Index showed that home prices were declining at a slower rate. MDA Dataquick reported that notices of default rose in 76 of 84 CA Zip codes.

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