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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 11/17/10

Wednesday, November 17th, 2010

Today’s News Synopsis:

The MBA reports mortgage application volume decreased 14.4% this week.  According to CoreLogic, home prices have fallen 2.8% since September 2009.  Mortgage fraud has increased 20% from early 2009. Mortgage lenders are raising their minimum credit score requirements on FHA-insured loans.

In The News:

MBA - “Mortgage Applications Decline as Mortgage Rates Jump in Latest MBA Weekly Survey” (11-17-10)

“The Market Composite Index, a measure of mortgage loan application volume, decreased 14.4 percent on a seasonally adjusted basis from one week earlier. The results do not include an adjustment for Veterans Day. On an unadjusted basis, the Index decreased 15.0 percent compared with the previous week.”

Washington Post – “States, mortgage lenders in talks over fund for borrowers in foreclosure mess” (11-17-10)

“State attorneys general and the country’s biggest lenders are negotiating to create a nationwide fund to compensate borrowers who can prove they lost their home in an improper foreclosure, state and industry officials said.”

Housing Wire - “Fed proposal gives banks 2 years to comply with Volcker Rule” (11-17-10)

“The Federal Reserve issued a proposal Wednesday giving banks two years to bring investment activities in compliance with the Volcker Rule.”

Housing Wire – “CoreLogic HPI for September down 2.8%” (11-17-10)

“The data analytics company said its HPI fell 2.8% in September from a year earlier, following a revised drop of 1.1% in August. Excluding sales of distressed properties, home prices decreased 0.73% from the year-ago September.”

Housing Wire – “CoreLogic: Mortgage fraud up 20% from 2009″ (11-17-10)

“When CoreLogic (CLGX: 18.32 +1.05%) analyzed 7 million loan files in its database, it found the rate of mortgage fraud increased by more than 20% from early 2009 with specific processes and products being targeted.”

Housing Wire – “U.S. housing starts unexpectedly plunge in October” (11-17-10)

“The U.S. housing market continues to show signs that it isn’t well, with housing starts falling 11.7 percent in October to an 18-month low, the Commerce Department reported Wednesday. The annualized rate of new housing starts for last month came in at 519,000, well off consensus estimates of 600,000.”

Housing Wire – “Foreclosure fund for robo-sign victims under consideration: Iowa AG” (11-17-10)

“A fund to compensate homeowners caught in the foreclosure robo-signing scandal is being considered but is not a done deal, according to Iowa Attorney General Tom Miller’s office.”

Bloomberg - “Home Ownership Gets Tougher on Restricted FHA Mortgages” (11-17-10)

“Mortgage lenders including Wells Fargo & Co. and Bank of America Corp., the two largest, have raised the minimum credit score on FHA-insured loans that they will buy to 640 from 620. About 6.3 million people fall within that range, according to FICO, which created the formula for the ratings.”

Bloomberg - “Bernanke’s `Cheap Money’ Stimulus Spurs Corporate Investment Outside U.S.” (11-17-10)

“Such spending sounds like just what the Federal Reserve had in mind in 2008 when it cut interest rates to near zero and started buying $1.7 trillion in securities to spur job growth. Yet Southern Copper, which raised $1.5 billion in an April debt offering, will use that money at its mines in Mexico and Peru, not the U.S., said Juan Rebolledo, spokesman for parent Grupo Mexico SAB de CV of Mexico City.”

Looking Back:

One year ago, home sales increased by 2.8 percent from September to October in Southern California. The MBA reported that 6.7 million households with mortgages were behind on their payments, or were in the foreclosure process. TransUnion conducted a study of 27 million credit files and found that 6.25 percent were delinquent.

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 10/26/10

Tuesday, October 26th, 2010

Today’s News Synopsis:

The MBA estimates total originations in 2011 will be $400 billion less than the total for 2010. According to MDA DataQuick, 83,261 Notices of Default were recorded at California county recorder offices during the 3rd quarter. Lender Processing Services is releasing a new valuation model that brings listing and pending sale data into the equation. The FHFA claims U.S. house prices increased 0.4% in August.

In The News:

Mortgage Bankers Association – “MBA Sees Growth in Purchase Originations, Drop in Refinancing, and Weak Overall Economic Growth in 2011″ (10-26-10)

“The Mortgage Bankers Association expects to see mortgage originations fall from an estimated $1.4 trillion in 2010 to slightly under $1 trillion in 2011. The drop will be driven by a decline in refinance originations, but the industry will see an increase in purchase originations. The economy will grow at a slow pace but with no significant job growth until 2011. The increase in purchase originations will be driven by modest increases in home sales and stabilizing home prices. In contrast, MBA refinance originations are expected to fall steadily as mortgage rates gradually increase throughout 2011 and 2012.”

DQNews - “California Mortgage Defaults Rise in Third Quarter” (10-26-10)

“A total of 83,261 Notices of Default (“NODs”) were recorded at county recorder offices during the July-through-September period. That was up 18.9 percent from 70,051 in the prior quarter, and down 25.5 percent from 111,689 in third-quarter 2009, according to San Diego-based MDA DataQuick.”

Los Angeles Times – “Consumer confidence rises only slightly in October” (10-26-10)

“Americans’ confidence in the economy rose only slightly in October from September, according to a monthly survey, as they continue to grapple with job worries. The Conference Board, a private research group, said Tuesday that its Consumer Confidence Index rose to 50.2 from a revised 48.6 in September.”

CNN - “Home prices sag in August” (10-26-10)

“Home prices fell 0.2% from July after five consecutive months of gains, according to the S&P/Case-Shiller composite index of 20 metro areas. However, prices rose a modest 1.7% compared with a year earlier, the housing group reported Tuesday.”

Housing Wire – “Mortgage fraud index suggests shift toward property crime: Interthinx” (10-26-10)

“Mortgage fraud risk remained ‘essentially unchanged’ in the third quarter of 2010 compared to the second and down from a year ago, according to Interthinx’s Quarterly Mortgage Fraud Risk Index. Interthinx reported the risk index for 3Q at 144, down 0.9% from last quarter and 1.4% from the same time last year.”

Housing Wire – “U.S. declines on Transparency International corruption index” (10-26-10)

“The financial and the foreclosure crisis have contributed to the United States’ decline on a global corruption index, released by the watchdog group Transparency International. The U.S. ranked 22nd of 178 countries with a score of 7.1 on the 2010 Corruption Perceptions Index, down from 19th last year.”

Housing Wire – “New LPS valutaion model uses multiple listing services from NAR database” (10-26-10)

“Lender Processing Services (LPS: 27.59 +2.91%) unveiled a new valuation model for realtors that brings listing and pending-sale data into the equation.”

Housing Wire – “Zillow: National 30-year FRM rates remain flat week-over-week” (10-26-10)

“The 30-year, fixed-rate mortgage remained flat from last week ending at a 4.14% national average the week of Oct. 20-26, according to the Zillow Mortgage Marketplace weekly update.”

Housing Wire – “FHFA house prices up 0.4% in August, down from year-ago” (10-26-10)

“U.S. house prices increased 0.4% in August, almost regaining the 0.7% revised decrease in July, but fell more than 2% from a year ago, according to the Federal Housing Finance Agency monthly House Price Index.”

Looking Back:

One year ago, on October 9th, a judge ruled against a lender, wiping out a $461,263 mortgage debt. Goldman Sachs estimated that government interventions had sustained prices by 5 percent above what they would be. According to CAR, a total of 530,520 escrows closed in California during September 09.

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

Friday, October 8th, 2010

Today’s News Synopsis:

ZipRealty reports 24.2% of homes in the nation’s 26 major markets experienced experienced a price cut in September. Bank of America is postponing foreclosure sales in all 50 states. Wells Fargo has decided to continue with its foreclosures, unlike BofA, JPMorgan and Ally Financial. Credit Suisse predicts record low interest rates will boost demand for mortgage-backed securities.

In The News:

Inman - “Home-sale discounts jump 24%” (10-8-10)

“The number of homes that experienced price cuts jumped 24.2 percent in September compared to the same month last year, according to a monthly review of multiple listing service listings in 26 major markets conducted by national online brokerage ZipRealty.”

Yahoo - “How Your FICO Score is Calculated” (10-8-10)

“Payment history – How you pay your bills makes up 35% of your FICO score. It goes without saying that paying your bills on time will have a positive impact on your credit score, while paying your bills late or not at all will have a dramatically negative impact. Even paying one bill late will cause your FICO score to take a hit, so make sure you’re paying your bills on time. If you’ve made mistakes in the past and haven’t always paid your bills on time, don’t fret. If you change your ways and pay on time, your FICO score will eventually reflect that. Late payments have less of an impact on your credit score once time has passed.”

Los Angeles Times – “Bank of America widens foreclosure freeze to all 50 states” (10-8-10)

“Bank of America is halting foreclosure sales in all 50 states as the nation’s largest bank said Friday it was widening its investigation into how it handled home repossessions.”

Housing Wire – “California AG files suit in audit loan modification scam” (10-8-10)

“California Attorney General Jerry Brown has filed a $60 million lawsuit against a pair of Sacramento companies that he says used questionable computer-generated ‘forensic loan audits’ to defraud homeowners seeking to modify their mortgages.”

Housing Wire – “US lost 95,000 nonfarm payroll jobs in September” (10-8-10)

“The Labor Department’s Bureau of Labor Statistics reported federal employment cut another 159,000 jobs last month, including 77,000 temporary Census workers and 76,000 local government positons. The private sector added 64,000 jobs in September, according to the Labor Department. Economists polled by MarketWatch were forecasting about 85,000 new private-sector jobs were created last month.”

Housing Wire – “Financial radio talk-show host charged with real estate fraud” (10-8-10)

“Barbra Alexander, a local California radio show host, was charged along with two business executives for misappropriating investor funds to finance her radio talk-show, ‘MoneyDots,’ and for personal use. Alexander allegedly used her status as a radio show host on ‘MoneyDots,’ a talk-show for entrepreneurs, to lure investors into giving funds for short-term loans secured by real estate. The money went to APS Funding, a lending firm of which Alexander is also president.”

Housing Wire – “Credit Suisse analysts see record-low mortgage rates boosting MBS demand” (10-8-10)

“The record low interest rates should boost demand for mortgage-backed securities, as originators sell newly locked-in loans, according to Credit Suisse analysts.”

Housing Wire – “Wells Fargo will not join BofA in foreclosure suspension” (10-8-10)

“Wells Fargo (WFC: 25.95 -0.19%) will not suspend foreclosures and stands by the accuracy of its affidavits, Jason Menke, a spokesman for the San Francisco-based bank, told HousingWire.”

Looking Back:

One year ago, a government report showed that the Federal Reserve and the U.S. Treasury spent $1.2 trillion dollars on the U.S. mortgage market in fiscal 2009. The Department of Labor announced that the weekly unemployment claims had decreased by 33,000.  Statistics from Freddie Mac showed that mortgage rates for 30-year fixed U.S. home loans fell to 4.87 percent from 4.94 percent in the previous week. Trulia reported that U.S. home sellers had reduced their price by a total of $28.4 billion.

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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The Norris Group Real Estate News Roundup 9/22/10

Wednesday, September 22nd, 2010

Today’s News Synopsis:

Mortgage loan applications decreased 1.4% this week. FHFA reports national house prices fell 0.5% in July. HAMP converted 33,342 trial modifications into permanent status last month. The Bush tax cuts may end soon.

In The News:

Naked Capitalism – “Latest Real Estate Time Bomb: Title of Foreclosed Properties Clouded; Wells Fargo Dumping Risk on Hapless Buyers” (9-22-10)

“there is a lot of actual and shadow residential real estate inventory in the US. The time from serious delinquency to foreclosure has lengthened considerably, due not just to crowded court dockets, but also bank/servicer disinclination to take possession (reasons include that investors take a dim view of bank real estate holdings; the bank is liable for expenses, most important real estate taxes, once it takes possession; more foreclosures would lead banks to have to write down clearly overvalued second mortgages, leading to losses and lowering bank capital levels).”

Mortgage Bankers Association – “MBA Hails Extension of National Flood Insurance Program” (9-22-10)

“Flooding is the most common natural disaster in the United States. In fact, more than five million Americans rely on the National Flood Insurance Program as their primary protection against flooding. This program has expired regularly in recent times, which has frustrated residential and commercial lenders and borrowers alike.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (9-22-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September 17, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 1.4 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 22.9 percent compared with the previous week, which included the Labor Day holiday.”

Sacramento Bee – “Viewpoints: Is ‘smart growth’ law on right track? No” (9-22-10)

“Now, more than ever, the men and women out of work, construction companies that have no projects in the pipeline and local officials trying to maintain vital services are looking for a process that will bring all parties together to work toward a successful, responsible program. Unfortunately, the air board’s staff chose a path that will wreak havoc in the construction industry, prevent economic recovery, and stand as a major disincentive to future developments in our state.”

Housing Wire – “FHFA house prices slip 0.5% in July” (9-22-10)

“U.S. house prices fell 0.5% in July after increases through the second quarter, according the Federal Housing Finance Agency monthly House Price Index (HPI). The July numbers follow 1.2% drop in July, revised from a 0.3% decline.”

Housing Wire - “SEC charges 4 with fraud after failing to disclose real estate investment fund collapse” (9-22-10)

“The Securities Exchange Commission Monday charged a Minneapolis attorney and two San Francisco promoters with fraud after they failed to disclose the financial collapse of a real estate lending fund to relevant investors. Todd Duckson, Michael Bozora and Timothy Redpath allegedly raised more than $21 million from investors in the Capital Solutions Monthly Income Fund after the sole business partner defaulted on financial obligations. The fund raised approximately $74 million from 450 investors between 2004 and August 2009.”

Housing Wire – “Obama housing scorecard touts ‘advances’ in August” (9-22-10)

“The Department of Housing and Urban Development and the Treasury Department compiled data for the monthly scorecard. According to the administration, stabilizing housing prices leveled off in the past year after 30 straight months of declines. Homeowners added $95 billion in home equity in the second quarter. The scorecard did acknowledge ‘a dip’ in home sale figures in July after the expiration of the homebuyer tax credit. But since April 2009, record low mortgage rates have helped more than 7.1 million families refinance, saving more than $12.7 billion.”

Housing Wire – “Permanent HAMP mods fall 26% in August” (9-22-10)

“Servicers participating in the Home Affordable Modification Program converted 33,342 trial modifications into permanent status in August, down 26.7% from the 45,512 in July. The Treasury Department launched HAMP in March 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. Since then, the participating servicers have provided 468,058 permanent modifications.”

Housing Wire – “Right to Rent could change the nation’s foreclosure crisis: CEPR” (9-22-10)

“The report dissects the benefits of a drafted bill, H.R. 5028, also known as The Right to Rent. Under the legislation, homeowners entering the foreclosure process would be able to occupy their homes for up to five years, while paying rent to a lender. Rent would be based on fair market price as determined by an independent appraiser and adjusted annually.”

Bloomberg - “Obama Tricks Voters as Enron Hoodwinked Public: Amity Shlaes” (9-22-10)

“Republicans want to keep the top rate at its current level while Democrats prefer to let the George W. Bush-era rate cuts expire. And some of us may even know that the tax code’s current 35 percent figure would rise to 39.6 percent if President Barack Obama gets his way.”

Looking Back:

One year ago, the Federal Housing Finance Agency announced that national home prices increased by .3% in July.  The FDIC considered borrowing money from banks to protect the insurance fund. ZipRealty reported that 25 markets displayed a reduction in home inventory from July to August.

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

Tuesday, August 10th, 2010

Today’s News Synopsis:

The new FHA short refinancing program will provide additional refinancing options to underwater homeowners starting Sept. 7. According to Integrated Asset Services, nationwide home prices increased 1.1% in the second quarter. Zillow reports California’s current rate on 30-year mortgages is 4.34%. CoreLogic estimates that short sales in Arizona, California, Florida and Texas will cost lenders $310m in unnecessary losses in 2010.

In The News:

Sign on San Diego - “Q&A: Pulte Homes exec on the San Diego housing market” (8-10-10)

“Q:Why is your company looking to build in the San Diego market? A: We are trying to be very strategic in our land acquisitions because there is a limited availability of finished lots. We see the economy starting to recover here with companies beginning to invest, especially in the high-tech and biotech markets. Engineers are relocating here. It tells us the demand is there.”

Housing Wire – “FDIC Launches Unit to Liquidate Banks under Dodd-Frank” (8-10-10)

“The CFI will review bank holding companies (BHCs) with more than $100bn of assets as well as non-bank financial companies designated as systemically important by the new Financial Stability Oversight Council. The CFI unit will also carry out the FDIC’s new authority to implement orderly liquidations of failed BHCs and non-bank financial firms.”

Housing Wire – “Home Prices Nationwide Increase 1.1%: IAS360″ (8-10-10)

“Integrated Asset Services, LLC (IAS), a Denver-based collateral valuation and default management service firm, released its latest IAS360 House Price Index (HPI) Tuesday reporting that collectively, nationwide home prices increased 1.1% from the first quarter of 2010 to the second. This is down 0.9% from the same period last year and down 16.7% from the survey’s all-time HPI high in Q407.”

Housing Wire – “FHA Short Refinancing Program Likely to Have Low Impact on Housing: KBW” (8-10-10)

“As HousingWire reported last week, the new program will provide additional refinancing options to underwater homeowners starting Sept. 7. To be eligible for the new loan, the homeowner must be underwater but still current on the mortgage. A credit score of 500 or better is required, and once refinanced and insured by the FHA. The new refinanced loan must have a loan-to-value ratio of no more than 97.75%. The borrower’s existing first-lien holder must agree to write at least 10% of the unpaid principal balance, and it must bring the borrower’s combined loan-to-value ratio (LTV) on that first mortgage to no more than 115%. The existing refinanced loan cannot be an FHA-insured one.”

Housing Wire – “Zillow: Weekly Rate on 30-Year Fixed Rate Mortgage Averages 4.3%” (8-10-10)

“The 30-year fixed-mortgage rate (FRM) slightly increased week-to-week nationally to an average of 4.3%, according to the Zillow Mortgage Marketplace weekly update. This is up 0.02% from the record low set last week. Regionally 30-year rates are varying, but the majority of states saw an escalation. California’s current rate is 4.34%, up from 4.33% last week, as is New Jersey’s at 4.28%, up from 4.27%.”

Housing Wire – “DebtX June CRE Loan Value Up to 77.4%” (8-10-10)

“The value of commercial real estate (CRE) loans that collateralize commercial mortgage-backed securities (CMBS) priced by DebtX rose to 77.4% at the end of June from 76.6% in May, the loan-sale adviser said in a press release Tuesday.”

Housing Wire – “Short Sales Cost Lenders $310m More Than Necessary, CoreLogic Study Finds” (8-10-10)

“The study projects that more than half of short sales happen in Arizona, California, Florida and Texas and will cost lenders an estimated $310m in unnecessary losses during all of 2010. These losses average $41,500 per short sale. Potential fraud, such as flipping or offer misrepresentation, likely happens in one in every 53 short sale transactions. CoreLogic examined a representative data sample of single family residence (SFR) short sale transactions from the past two years, representing 98% of real estate transactions and 85% of mortgage financing details, the firm said.”

Housing Wire – “Risk of House Price Decline Slightly Shrinks in PMI Index” (8-10-10)

“The Q310 market risk index, which uses Q110 data, dropped to 51.9 from 53.8. The score indicates the probability (from zero to 100) that the price of homes will on average be lower after two years. And while the risk of declines is less, economic analysts say house prices will likely continue to drop.”

Bloomberg - “`Buy and Bail’ Homeowners Get Past Loan Restrictions” (8-10-10)

“Real estate professionals call it ‘buy and bail,’ acquiring a new house before the buyer’s credit rating is ruined by walking away from the old one because it’s ‘underwater,’ or worth less than the mortgage. It’s an attempt to escape payments on a home whose value may never recover while securing a new property, often at a lower price with a more affordable loan. The practice, which constitutes fraud if borrowers lie on loan applications, is continuing even after Fannie Mae and Freddie Mac, the biggest U.S. mortgage-finance companies, beefed up standards to prevent it, according to brokers such as Collier and Meg Burns, senior associate director for congressional affairs and communications at the Federal Housing Finance Agency.”

Bloomberg - “Investors Doubt Mortgage-Bond Revival Until 2012, Moody’s Analysts Say” (8-10-10)

“Investors doubt the market for home- loan securities without government backing will revive until 2012, according to Moody’s Investors Service. About 74 percent of attendees surveyed for a June conference by the New York-based rating company responded that issuance, which essentially halted in 2007, will make a substantial ‘comeback’ no sooner than 2012, Moody’s analysts Navneet Agarwal and Brian Harris wrote in an Aug. 6 report.”

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 7/30/10

Friday, July 30th, 2010

Sources:

http://www.govtrack.us/congress/bill.xpd?bill=h111-600

http://maplight.org/us-congress/bill/111-hr-600/357605/total-contributions.table

http://blogs.wsj.com/developments/2010/07/29/popular-zero-down-mortgage-program-makes-comeback/?blog_id=36&post_id=14060

http://www.rurdev.usda.gov/rhs/sfh/brief_rhguar.htm

http://www.rurdev.usda.gov/SupportDocuments/CA%20GRH.pdf

http://money.cnn.com/2010/07/26/real_estate/new_home_sales/?postversion=2010072612

http://www.housingwire.com/2010/07/26/multifamily-rental-demand-catching-up-to-supply-barcap

http://www.bloomberg.com/news/2010-07-27/apartment-rentals-surge-in-u-s-as-foreclosures-rise-job-growth-resumes.html

http://www.housingwire.com/2010/07/27/homeownership-vacancy-rate-level-in-q210

http://www.bloomberg.com/news/2010-07-27/job-cuts-of-500-000-next-year-predicted-for-cities-counties-over-budget.html

http://money.cnn.com/2010/07/29/real_estate/new_face_of_foreclosure

Today’s News Synopsis:

The Commerce Department reports the economy grew by 2.4%. Altos Research predicts home prices will continue to decrease through the rest of the year. According to FinCen, suspicious activity reports for mortgage fraud in 2009 increased by 4% from 2008. Legislation for the Section 502 single-family rural housing program is headed to the President to be signed back into law. The program allows 30-year originations to purchase households or renovate currently owned ones with zero down payment at the time of application.

In The News:

Los Angeles Times – “Economy slows sharply in second quarter” (7-30-10)

“The nation’s economy grew at a modest 2.4% annual rate in the April-to-June period, the Commerce Department said in its first estimate of gross domestic product for the second quarter. That compares with a GDP growth of 3.7% in the first quarter – a figure adjusted up from 2.7% reported earlier. But Commerce officials revised down the growth in the fourth quarter of last year, to 5% from 5.6%, as it did for prior quarters, painting an overall picture of a deeper recession than previous data suggest.”

Housing Wire – “Fannie Mortgage Portfolio Grows 6% on $19bn of Repurchases” (7-30-10)

“Fannie’s book of business include about $19bn of loans purchased from mortgage-backed security (MBS) trusts in June that won’t be reflected as liquidated from MBS until July. Excluding these repurchases, the total book of business would have grown at a compound annualized rate of 0.3% in June. Within the company’s mortgage portfolio, Fannie added $27.6bn in purchases and recorded $6.2bn in sales and $17.2bn in liquidations. Due largely to the $19bn of buybacks, Fannie’s mortgage portfolio grew at a compound rate of 6.3% in June.”

Housing Wire - “Shadow Inventory to Push 2011 Home Prices Lower than ’09: Altos Research” (7-30-10)

“House prices will continue to drop through the rest of the year and will begin 2011 lower than they were in 2009, according to a webinar hosted by Scott Sambucci, vice president of data analytics for Altos Research.”

Housing Wire - “Alleged Mortgage Fraud up 4% in 2009 with LA, Miami in Top Spots” (7-30-10)

“FinCEN notes that suspicious activity reports (SARs) for mortgage fraud in 2009 rose 4% from 2008, and really started speeding up towards the end of the year. Q409 is up 6% from the same quarter one year ago. Further, mortgage loan fraud made up 9% of all SARs filed in 2009, spiking at 11% in Q409.”

Housing Wire – “CMBS Defaults on Track to Break 11% by Year-End: Fitch” (7-30-10)

“Defaults on fixed-rate conduit US commercial mortgage-backed security (CMBS) loans continued at record speeds, on track to reach a cumulative default rate of 11% by year-end 2010, according to credit-rating agency Fitch Ratings. Cumulative defaults rose to 9.48% through June — a 133bp-climb from Q110. This increase is in line with Fitch’s expectation of an 11% cumulative default rate by year-end.”

Housing Wire – “Fed Hikes Mortgage Fee Disclosure Trigger 2% in 2011″ (7-30-10)

“The Federal Reserve Board of Governors today raised the dollar amount of mortgage fees that triggers mortgage disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act of 1994 (HOEPA). The Fed raised the trigger 2% to $592, from the current $579, beginning in January 2011. The trigger amount is now 48% higher than the $400 originally set by HOPEA in 1994.”

Housing Wire – “Section 502 May Return with Zero Down Payment Mortgages, 3.5% Guarantee Fee” (7-30-10)

“The National Association of Realtors (NAR) announced Wednesday that legislation for the Section 502 single-family rural housing program under the Department of Agriculture is headed to President Obama’s desk to be signed back into law. The program allows 30-year originations primarily for low-income families to purchase households or renovate the ones they already own with no down payment at the time of application. Loans are guaranteed by the federal government.”

Realty Times - “California gets $700,000 slice of special $1.5 billion homeowner bailout pie” (7-30-10)

“California struck gold, receiving the biggest chunk of a special $1.5 billion federal fund pie for programs that target struggling homeowners in states hardest hit by the housing crash. Earlier this year President Obama announced the $1.5 billion infusion for state housing agencies in Arizona, California, Florida, Michigan and Nevada, where home values have fallen more than 20 percent from peak 2006 and 2007 markets.”

Looking Back:

One year ago, the Labor Department reported the unemployment rate rose to 9.5. The average 30-year mortgage rate increased to 5.25 percent. Inventory levels in Orange County reached the lowest levels in 4 years.

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 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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