Sources:
Multifamily mortgage originations jump 13%
Builder Confidence for the 55+ Housing Market Ends Fourth Quarter on an Upswing
HAMP Mods Approach 1M Mark
Mortgage mods in 2011 down 40% from prior year
Fewer young adults hold jobs than ever before
Report Reveals Number of Foreclosures Down From Last Year
Mortgage giants to pay $25 billion in foreclosure settlement
REAL ESTATE: California receives up to $18 billion in multistate settlement
Wells Fargo to start $5.3 billion foreclosure settlement relief in March
Banks Paying Homeowners a Bonus to Avoid Foreclosures: Mortgages

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big news of the week.  30-year mortgage rates continue to hold at record lows of 3.87%.  DS News reported Bank of America will be required to pay $1 billion in settlement fees for their part in mortgage fraud.  In other news, the values of homes decreased over 1% in the fourth quarter, although the decrease for this year is expected to be lower than 2011.

In The News:

San Francisco Chronicle – “30-year mortgage rates hold at record low of 3.87%” (2-10-12)

“Rates for 30-year U.S. mortgages held at the lowest level on record as fewer Americans sought loans for home purchases.  The average rate for a 30-year fixed loan was unchanged in the week ending Thursday at 3.87 percent, the lowest in records dating to 1971, Freddie Mac said in a statement.”

DS News – “U.S. Resolves Claims Against BofA Through $1 Billion Settlement” (2-10-12)

“Bank of America will pay $1 billion to settle on the largest False Claims Act relating to mortgage fraud.   As part of the $25 billion settlement, Loretta E. Lynch, U.S. attorney for the Eastern District of New York, announced that the government will resolve its claims against Bank of America, Countrywide, and certain Countrywide subsidiaries and affiliates for underwriting and origination mortgage fraud.”

Housing Wire – “Construction job cuts account for one-third of 4Q mass layoffs” (2-10-12)

“Mass layoffs in the fourth quarter of 2011 declined to their lowest level in six years, but construction jobs still took a big hit on the end of seasonal hiring, the government said Friday.”

Bloomberg - “Pimco: Foreclosure Deal Cheap for Banks” (2-10-12)

“The government’s deal with banks over their foreclosure practices after 16 months of investigations is cheap for the loan servicers while costly for bond investors including pension funds, according to Pacific Investment Management Co.’s Scott Simon.”

CNN Money – “Mortgage deal: What the critics say” (2-10-12)

“The $26 billion mortgage settlement had a lot of support — as evidenced by the 49 out of 50 state attorneys general that signed on to it.  The deal, which was announced Thursday, also won praise from groups as diverse as the Mortgage Bankers Association, the industry trade group for lenders, and the Center for Responsible Lending, a public interest group advocating for borrowers.”

Housing Wire – “Three California real estate investors plead guilty to bid rigging” (2-10-12)

“Three Northern California real estate investors agreed to plead guilty to forming a conspiracy to rig bids at foreclosure auctions, the Department of Justice Financial Fraud Enforcement Division said Thursday.”

DS News – “Home Values Declined 1.1 Percent for Fourth Quarter” (2-10-12)

“Zillow forecasts home values will be on the decline through December 2012, but the decrease will be smaller than 2011.”

Inman – “Markets with largest percentage-based price declines in Q4 2011″ (2-10-12)

“The Boise City-Nampa, Idaho, metro area led the nation with a 20.2 percent drop in its single-family existing-home median home price in fourth-quarter 2011 compared to the same quarter in 2010, the National Association of Realtors reported this week.”

Housing Wire – “Fannie defends ending pilot principal reduction program” (2-10-12)

“A small pilot principal reduction program Fannie Mae killed in 2010 was not performing well enough for executives to expand, the mortgage giant claims.”

DS News - “Illinois Introduces Two Initiatives to Tackle Foreclosure Issues” (2-10-12)

“To alleviate issues of foreclosure in one of the hardest hit areas, Illinois Governor Pat Quinn launched two initiatives. One effort will connect homeowners to resources to keep them in their homes, and another will help revitalize areas affected by foreclosed and vacation properties.”

Hard Money Loan Closed

West Covina, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $270,000 on a 7 bedroom, 4 bathroom home appraised for $420,000.

California Real Estate Investor Events:

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

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

Looking Back:

Existing home sales increased 15.4% in the 4th quarter of 2010, according to the NAR.  Housing affordability for first-time buyers increased to 69% during the final quarter of 2010, said the CAR. RealtyTrac reported foreclosure filings fell 17% year over year.  Kevin Warch resigned from the Federal Reserve Board of Governors.

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.

Mike Novak-Smith

REO agent

RE/Max

(Full Bio)

Ted Boeker

Owner and Broker

RE/Max

(Full Bio)

This week Bruce Norris is joined once again by Mike Novak-Smith and Ted Boeker. Mike Novak-Smith is not only one of the largest REO agents in the Inland Empire, but the nation. Mike is in the top 1% of all real estate agents nationwide and is experienced in REO, short sales, bankruptcies, asset management, and negotiating. Mike specializes in REOs in Riverside, Moreno Valley, San Bernardino, Perris, Rialto, Colton, and Corona. Ted Boeker is the owner of the company that Mike is at and has brokered for RE/Max Results in Moreno Valley. Having started the company in 1989, Ted has vast experience in real estate and has been able to train and lead 35 of Southern California’s highest producing real estate brokers and agents to close deals quickly and efficiently for a variety of clients in commercial, residential, multifamily, and office real estate. Nationwide Home Loans Inc. and RE/Max Results escrow division are associated companies. Before that, Ted practiced law.

With short sales gaining momentum, the process has become simpler and quicker. There is definitely an improvement as the banks have geared up because of either direction from the government or the realization that this is the only way they are going to survive the process. They have shifted a lot of people into the short sale divisions and have shortened the timeframes. There is still a lot of work to do, but there are still a few very good negotiators and asset managers. What is needed is probably ten times this many to be able to handle the number of short sales that are coming. Bruce wondered if Mike and Ted have looked at the losses when they compare a house going the REO route as opposed to the short sale route. Mike said often times a short sale can be more effective, but it depends on the timeframes. One thing with the REOs is the REO seller does control the process of using agents who are very effective and can speed them through the process. Mike has watched short sales where they closed the REO in two months, from start to finish, and fourteen months later they’re still on the market and still in escrow with the short sales. If it is done right, the short sale would be a quicker way to do it, but you have to have control of the process or it will run late. Ted agreed with the exception that the banks are improving their timeframes. In fairness to the banks today and the companies that they are shoving the properties off to are doing a good job of getting up to speed.

Bruce said it has to be pretty detrimental to the agent. For example, a first-time buyer could want to make an offer, but not confirm the offer for another five months. You have to think you are never going to do this a second time even if you hung in there for the five months. You will never make another offer for the second short sale because you have to make the decision to go live somewhere. This is a real issue. Bruce said, being a lender, that if someone asked him if he wanted to take a short sale, it would take about 30 seconds to do the math and say yes. So he wondered why it would take months and what is so involved that the problem cannot be solved more quickly. Ted said with his experience today with short sales, they are doing a lot for one particular company. They have found properties that have seconds that nobody knew about and second loans that have been sold in the secondary market, in some cases days prior. The person selling did not know there was a second, was getting ready to close, and found out about the second after they had already sold the property. Now they have to start all over with the company, and the deal falls through.
Ted said the best one they have so far is first holder made a first. The owner came in, took out a second, and somebody in the process forgot to subordinate the second to the first. There is now a $160,000 second that is now in front of a $150,000 first. The very likelihood is the owner of the home is going to end up with a $60,000 first on his house, and the second will be out with 0. Bruce said a situation like this is not very entertaining when you buy one of these in a trustee sale.

On a side note, when you have 80% of sales going either REO or short sale, the assumption is all of those people become renters. However, Ted said he assumes that about half would become renters, while the rest would move in with someone else, rather their parents or move to Nevada where they can get into something free or inexpensive. So in reality, they become non-households. This is a very big impact when you are talking about potential buyers: they are credit incapable and don’t have the money to live with the extra burden of debt. Not only can they not get a new loan, but they can’t afford a household cost. Therefore, for the time being they are downsizing. This is not going to be okay for either party, both the person who owns the house and are living in the back room or the people in the back room. They would like to emerge some day and be able to leave to live in their own place. If you can pick the timeframe, then you will have excess demand. Theoretically, this should happen two to three years from now assuming credit repair happens in two or three years. Having visited Washington, Bruce said a lot of what is happening is very political rather than common sense. If they wanted common sense suggestions, they would probably find it pretty easy to get. Trying to mix it with political acceptance is a whole different story.

In the ‘90s, there was a niche that emerged that Ted and Mike became very familiar with and that investors did a lot of in the ‘80s. When Bruce became an investor, one of the niches was you would have a 7% mortgage existing on loans prior to 1975, and in 1981 or 1982 interest rates were 17%. If you could move that financing forward to another buyer, you could wrap it as it was allowed. There was something called a simple assumption, which cost Bruce $45, so he would his name and tell people to pick his name instead of the other people. Bruce had new liability, so it was like the loan could only be paid back by the residents, and that was its sole responsibility. They changed this being acceptable, but there were hybrids that emerged in the 90s, something of which Ted and Mike were very familiar. They used a specific vehicle to sell somebody a home who probably would not necessarily qualify for bank financing but to get them to be the owner of a home.

For Ted, he preferred a land sale contractor or land contract. He said many people favor an all-inclusive trust deed; but his whole point about favoring land contract was that it did not create a grant deed, which in those days would tip off a lender that a sale had occurred. The recorded document was a contract between the two parties which memorialized the fact that one party would pay the other party a certain amount of money in five years. In today’s world, Ted does not believe one is necessarily better over the other. A lot of times it is the mood of the lender because the only thing to be concerned about is a due on sale clause being aggressively pursued by a lender. Bruce cannot imagine someone’s desk who decides to foreclose on a current loan because there was a breech on a due on sale clause in 2012. He would be fired quickly.

Mike said he has had many lenders tell him they did an AITD or a land contract who did not care as long as they received their money. Bruce said he once sat across from FHA in a meeting, and he said it would be helpful if they could take over subject to the existing loans, and they said they did not care. With a contract of sale, people would most likely relate to it more if you used it like a car sale. A car sale usually has a lien holder who actually has title. They almost hold the pink slip until the deal is made, whatever the deal is. In a car sense, it is usually paid off; but in a land contract it could be a meeting of certain agreed upon prior demands. It could be a demand for someone to pay them for three years, make every payment on time, and then they receive a grant. Somebody is always in distress, whether it is the seller or the buyer who does not have the credit to get a new loan. In the hard money loan side, there are investors buying properties that cash flow, and they have investors who put money in 9.9% trust deed investments. Smart money is on both sides of this table, and in this particular timeframe you could have smart people on both sides of those decisions. It could even be in a property that is almost a break-even.

Bruce bought a house in Moreno Valley two years ago, so the price really had not damaged; but he just had a job shift. He owed $140 on a $135 house and is $5 grand upside down. If he listed with someone and went through the normal cost, he would have to write a $20 grand check to escape. He had someone on one side, who was renting the same house in Moreno Valley for $1300, and he could make a deal to where he puts up a certain amount of money for a security deposit or pay a commission, and he could walk into a payment that is probably $900 with a chance of owning it. This makes more sense to Bruce, and this is why he believes it has a future pretty quickly. Ted said in this case the interest rate in the loan is becoming more valuable. In the old days, the equity was more valuable; and now the loan is valuable.

When Bruce first got into the business in 1981, he refinanced his house at 17 ½% interest, so to have an interest rate sub 4% is completely ridiculous. Bruce said he could certainly envision an 8% mortgage rate five years from now. Bragging rights would be somebody asking you your interest rate, and you tell them a number that is worth money. Lenders will be very sensitive to this at some point, but he cannot imagine for the next few years this standing in the way of asking if the person wants to foreclose or if they should find a buyer who still makes it current. It also speeds up the healing process in that they want stability from going from owner to vacancy. There are already a lot of damaged people, so when you’re talking about 80% of your business being credit incapable of buying a new home, they are payment capable of owning one in this type of circumstance. Realtors can then make a living not having to count on a group of buyers that won’t emerge for three years. It can absorb the next two or three years of people who are still waiting. Financially, we have two underserved groups: the group that just lost their property and the group of investors that could buy and hold rentals. If we would think this out and think about how we did it in the past, we could solve the problem without a lot of damage. If you had a lot of REOs where it was earmarked for owner-occupants and eventually there is a little pile of them that go to investors, there is five or ten of them at a time, and the mandate is to not sell them for five years, then it would not make sense to give these people financing. This would be game over as you would have more business than you would know what to do.

Ted said investors will save the day eventually, even if they are not allowed to because they are creative. Bruce once sold a property to a lady on Polk Street in Riverside, and it was in a land trust with an AITD on top. She received the property, but then she talked to her team later, and the tax person said when she writes her check she will not be able to deduct the interest as it was not in her name. All of a sudden, the lady called Bruce saying she could not understand that she owned the house, and Bruce could not make her team understand that she owned the house. Finally, he asked her if he could just buy the house back from her, and she said yes. He then asked her if she knew how she was going to have to give him the house. She was going to have to grant deed it to him because she owed him.

Bruce wondered if it was a difficult concept for people to understand the difference between a grant deed and a land contract or even an AITD. He also wondered if it was necessary for an escrow to be experienced with it. Ted answered yes to both questions. People do have a difficulty understanding, and it is a little funny because if you lay it out correctly and simply for a person, they do understand it. It is no different than buying anything else and promising to pay an amount and receive a grant deed or pink slip in return five years from now when the person has made their payments on time. Many real estate offices, certainly in the past, have simply refused to do any creative financing. This could include seller-carried financing, AITDs, or land contracts. One of the things Ted has insisted on is he will not do one of those transactions unless he can control the escrow because he needs to know that the escrow people will know how to do it and can explain it to the people whenever they have questions. Having been an investor for 30 years, Bruce has had experience and said there are some escrows that are worth their weight in gold and others where he is simply stunned by the questions people ask.

Bruce wondered if Ted has talked to people who asked to speak to people experienced with escrow, as this is something that would be valuable. Ted said he has never heard this asked, but he said by the time they finish explaining it they are fairly comfortable with the idea. Bruce said if Ted had worked with land contracts in the early 90s, there was not equity progression for quite some time. Ted said he did about 1300 land contracts, three of which actually went into distress and Ted and his employees were threatened with lawsuits. Out of about 1300, they had three that really did not get resolved and went bad. Ted’s feeling is it is a slam dunk, and the key to it is the people have to understand what they are doing upfront. Ted said he had a number of people who came in three or four years, and in those days the length of time was critical. Three years was too short a time; five years was really better. They had a number of people who came in five years and said they simply could not do it as they had either messed up their credit or had another type of distress. They would resolve the issue through either a reconveyance or a deed back. Everybody walked away relatively happy. As long as people understand what they are doing, they can solve a lot of problems creatively, which is what this market needs.

Bruce wondered if people are gun shy in buying right now, to which Mike said pretty much all the news on housing nowadays is negative. If you go to work and tell your coworkers you bought a house, you get chewed out for it, and then it becomes harder to follow through with it. There is not a lot of support for buying a house today other than the cheap interest rates. Mike said he does not really have the deals fall out once they are in escrow, but for many people today just going out into the market takes a lot of courage. Fear is the biggest factor they are dealing with, and this is why Bruce really spends time looking at his charts as these take him away from emotional decision-making, both on the high side and the ridiculously low side.

If you are in escrow for the first time in your life, you wonder if every situation is the same way. All of a sudden you are not tuning into news you probably heard but really did not hear. Now, all of a sudden, you are questioning every decision, even if you are locking in a 4% 30-year mortgage. Bruce cannot imagine this being replicated in our lifetime. Once we leave this cycle, we are going to see a chart that goes the other way for a considerable period of time. Young buyers today do not have any comparison, so they do not think something is a great deal and are not drawn by the 4%. Mike said there were people who walked when 4 ½% deals went up to 5%. He tried to tell them when he first bought a house it was at 13 ½%, and he was happy to get it. That payment emerges from a discounted price, and it is astonishing.

Bruce wondered what basic changes are going to come about because of this downturn in the future of financing for real estate and down payments. He wondered if there will be permanent changes or if we are only going through the emotions politically to make everybody happy. Mike said he believes there will be permanent changes. The problem today is it has become so hard if you are loaning money to buy a house to enforce your contract and get your collateral back if you make a mistake. If you compare it to car sales, they are way up from three years ago because they can enforce their contracts. If you do not pay for your car, they can come take it. With houses, it is almost impossible to enforce your contract now, so the financing is very tough. It will most likely get easier some day at some point, but it will most likely never again be what it once was. It should not be what it was from 2003 to 2008 because that was crazy, but there will probably be a little bit more of a push for a 5% minimum down payment versus 3% with a Fannie or Freddie type of purchase. As Bruce has pointed out very accurately, the VA program has a very low failure rate, and it is 0% down. There is a way to do it, but it is called underwriting and qualifying somebody. The hard money loan business just puts you in the seat of making common sense decisions. What it boils down to is are we likely to get paid monthly and get paid back? The VA is most likely in this same decision process where the whole world is driven by a FICA score, and yet they can make common sense decisions that look like they are going to be paid back and it makes successful loans.

Bruce wondered if interest rate deductions ever bite the dust, but Mike is not as convinced that this will make as big a difference. Most people’s perceptions of their interest rate deductions are much greater than the actual event. They think they are going to save a lot of taxes, but the truth is it is not really a big deal. At 4%, you have a bit of money to pass whatever the basic deduction is. They will probably have to owe $300 grand or more before it is even relevant, but this is not a real factor. There was another document drawn up where there was two sides of a panel where the Democrats and Republicans both had input about what to do about the budget. To Bruce, real estate seems like a piece of low-hanging fruit. We have had a lot of goodies for a while, and Bruce said if he was on the real estate side, like CAR or NAR, he would find a sacrificial lamb to take something back. One of them would be the $500 grand freebie, which occurs every two years. Bruce said he was surprised the people came up with this even though Bruce happened to own properties that would be affected. You have to wonder what percentage of people nationally could ever take advantage of that. If in fact they are going to take some of our things away, Proposition 13 should not be one of them. Ted said he does not know if he would be willing to give this up as it could be pretty damaging. This would allow taxes to go up 2 or 3 times and affect people who own things free and clear. Bruce said he interviewed a well-known economist who said this is why they have reverse loans.

For more information on their escrow company, American Independent Escrow, Inc., you can contact the company itself.

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

A settlement has finally been reached in the recent rob-signing scandal between top mortgage servicers and 40 other states.  A recent ruling with MERS was upheld by the 10th Circuit Court of Appeals, allowing them to foreclose on loans that were part of a securitization trust.  DS News reported 30-year fixed mortgage rates continue to be at record lows, while at the same time fixed rates and adjustable-rate mortgages showed signs of improvement.

In The News:

Los Angeles Times – “Mortgage giants to pay $26 billion in foreclosure settlement” (2-9-12)

“Federal and state officials on Thursday announced a landmark $26-billion agreement with the nation’s five largest mortgage servicers to settle investigations involving foreclosure abuses and try to stabilize the housing market.”

Mortgage Bankers Association – “MBA Statement on Mortgage Settlement” (2-9-12)

“Said David H. Stevens, President and CEO of MBA, ‘A final agreement can play an important role stabilizing and providing certainty and confidence to the housing and mortgage markets.  With all the rumors and speculation surrounding these negotiations behind us, it is now imperative that policymakers, lenders, servicers and other stakeholders work together on policies and initiatives that will allow us to get the housing market on the road to recovery’.”

Realty Times – “Home Equity Use No Longer Home Equity Abuse” (2-9-12)

“Record numbers of refinancing homeowners have stopped using their home equity as an ATM machine for withdrawals and instead are making more deposits.”

Housing Wire – “10th Circuit upholds MERS right to foreclosure” (2-9-12)

“The 10th Circuit Court of Appeals upheld a lower court’s ruling, giving the Mortgage Electronic Registration Systems and a trustee overseeing securitized loans standing to foreclose on a mortgage pooled into a securitization trust.”

CNN Money – “Fewer young adults hold jobs than ever before” (2-9-12)

“The share of young adults with jobs has hit its lowest level since the government started keeping records just after World War II.”

Housing Wire – “Wells Fargo to start $5.3 billion foreclosure settlement relief in March” (2-9-12)

“Wells Fargo ($30.63 0%) will begin implementing the mortgage refinancing requirements under the state and federal foreclosure settlement in March.”

San Francisco Chronicle – “Consumer Comfort Index in U.S. Climbs to Highest Level in a Year” (2-9-12)

“Consumer confidence in the U.S. climbed last week to a one-year high, spurred by improving employment opportunities and a rally in the stock market.”

DS News – “Report: 30-year Fixed Rate Unchanged, Other Rates Climb” (2-9-12)

“While the 30-year fixed rate mortgage remained at a record low, data released Thursday by Freddie Mac reported other rates are steadily moving upward.”

Hard Money Loan Closed

Los Angeles, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $125,000 on a 2 bedroom, 1 bathroom home appraised for $209,000.

California Real Estate Investor Events:

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

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

Looking Back:

The MBA reported mortgage applications decreased 5.5% the previous week. Zillow claimed national home prices dropped 2.6% during the 4th quarter of 2010. Bernanke and Geithner said the economy was still having trouble, but had strong hope for stable growth.

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.

CoreLogic reported a decrease in foreclosures for the whole year in 2011 with 830,000 compared to 1.1 million in 2010.  According to Bloomberg, mishandled mortgages and foreclosures have cost banks as much as $72 billion.  In other news, the Mortgage Bankers Association reported a 7.5% increase in mortgage applications.

In The News:

DS News – “Report Reveals Number of Foreclosures Down From Last Year” (2-8-12)

“A foreclosure report released by CoreLogic Wednesday revealed that the number of homes in foreclosure is decreasing nationwide. The report included monthly data on foreclosures, foreclosure inventory, and 90 plus delinquency rates.”

Bloomberg – “Faulty Loans Top $72 Billion as Banks Seek Deal With Regulators: Mortgages” (2-8-12)

“Costs from faulty mortgages and shoddy foreclosures have topped $72 billion at the biggest U.S. banks as they near a settlement of a 50-state probe into the industry’s practices.”

NAHB – “Home Builders Applaud Menendez Bill to Restore the Flow of Credit for Home Building” (2-8-12)

“The National Association of Home Builders (NAHB) today commended Sen. Robert Menendez (D-N.J.) for introducing the Home Building Lending Improvement Act of 2012 (S. 2078), legislation to help restore the flow of credit for new housing production in order to create jobs, meet rising housing demand and bolster the economic expansion.”

Realty Times – “Mortgage Rates Continue Low Despite Upbeat Economic Data” (2-8-12)

“According to Freerateupdate.com’s weekly survey of wholesale and direct lenders, mortgage rates have remained the same for another week and through another stock market rally. Current 30 year fixed mortgage rates are at 3.500%, 15 year fixed mortgage rates are at 2.875% and 5/1 adjustable mortgage rates are at 2.250%, all available with 0.7 to 1% origination fee to well qualified borrowers.”

Mortgage Bankers Association – “Refinance Activity Increases as Rates Hit Survey Lows” (2-8-12)

“Mortgage applications increased 7.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 3, 201.”

Bloomberg – “Mortgage Bonds Face Eye of Storm as Refinancings Decline: Credit Market” (2-8-12)

Investors in U.S. government-backed mortgage bonds who benefited from a decline in early payoffs by homeowners are bracing for the fallout from a loosening of refinancing rules at Fannie Mae and Freddie Mac.”

Housing Wire – “Consumers take on more debt: Federal Reserve” (2-8-12)

“Consumer credit outstanding rose 9.3% in December to $2.49 trillion, compared to $2.47 trillion in November and $2.46 trillion in October, the Federal Reserve said.”

Bloomberg – “BofA Stalls Refinance Applications as Wells Fargo Is ‘Open for Business’” (2-8-12)

“Bank of America Corp., struggling to handle mortgage refinancing after a U.S. program boosted demand, is telling some customers to wait 90 days before starting an application, said two people with knowledge of the policy.”

Housing Wire – “Multifamily permits outpace construction in 2011“ (2-8-12)

“Multifamily permits surpassed the sector’s construction rate for the last three months of 2011, while single-family construction remained flat.”

Hard Money Loan Closed

Fontana, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $140,000 on a 4 bedroom, 2 bathroom home appraised for $245,000.

California Real Estate Investor Events:

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

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

Looking Back:

Fannie Mae and the MBA predicted the housing market would begin a rebound that would last until 2013, and Zandi predicted 4% gdp growth through 2012. IAS claimed national home prices fell 0.8% during the 4th quarter of 2010.

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

According to DS News, the number of homeowners receiving loan modifications from HAMP is about to reach 1 million.  In other news, more than 40 states have joined in on a settlement to help homeowners in foreclosure.  Banks are beginning to help out with people in foreclosure by now offering them money to sell their properties at a lower price than what is owed.

In The News:

DS News – “HAMP Mods Approach 1M Mark” (2-6-12)

“More than 930,000 homeowners have received a permanent modification through the government’s Home Affordable Modification Program (HAMP), saving an estimated $10.5 billion in monthly mortgage payments, according to Treasury.”

Housing Wire – “Mortgage mods in 2011 down 40% from prior year” (2-7-12)

“More than 1 million American homeowners received permanent loan modifications from mortgage servicers in 2011, down 40% from 2010, Hope Now said Tuesday.”

San Francisco Chronicle – “Banks Paying Homeowners a Bonus to Avoid Foreclosures: Mortgages” (2-7-12)

“Banks, accelerating efforts to move troubled mortgages off their books, are offering as much as $35,000 or more in cash to delinquent homeowners to sell their properties for less than they owe.”

CNN Money – “Foreclosure deal has 40 states, but others balk” (2-7-12)

“More than 40 states have signed on to a draft settlement with the nation’s largest banks aimed at helping homeowners struggling with loans bigger than the value of their homes.”

Housing Wire – “Nonbank mortgage lenders required to file fraud reports” (2-7-12)

“Nonbank mortgage lenders will be required to establish anti-money laundering programs and file suspicious activity reports beginning later this year, according to rules finalized by the Financial Crimes Enforcement Network.”

Bloomberg – “States with Highest Foreclosure Rates Among Bank Deal Holdouts” (2-7-12)

California, New York, Nevada, Florida and Massachusetts are among the handful of states that haven’t signed a deal with banks over foreclosure abuses, according to state officials and two people familiar with the talks.”

Housing Wire – “Mass. House Democrats push FHFA on mortgage mods” (2-7-12)

“Three Massachusetts congressmen are asking the Federal Housing Finance Agency to reconsider options in loan modifications, saying the regulator hasn’t done enough to help homeowners.”

NAHB – “Builder Confidence for the 55+ Housing Market Ends Fourth Quarter on an Upswing” (2-7-12)

“Builder confidence in the 55+ housing market for single-family homes rose four points to 18 compared to the same period a year ago, according to the latest National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI) released today.”

CNN Money – “Government expects lending fund to turn taxpayers a profit” (2-7-12)

“An Obama administration lending program set up to funnel cash to small banks was expected to cost taxpayers $1.3 billion. Instead, it will turn a profit of $80 million.”

Housing Wire – “Prepayments on Fannie and Freddie MBS decline” (2-7-12)

“Prepayments on Fannie Mae and Freddie Mac mortgage-backed securities slowed in December and January, suggesting HARP 2.0 has yet to stimulate mass-refinancing activity, analysts said Tuesday.”

Hard Money Loan Closed

San Diego, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $90,000 on a 2 bedroom, 2 bathroom home appraised for $160,000.

California Real Estate Investor Events:

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

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

Looking Back:

The MBA reported $110 billion in commercial and multifamily mortgages were originated in 2010. 36,500 mortgages were modified through government and proprietary programs in December 2010, according to Fitch Ratings. Altos Research announced plans to release a new, forward valuation model for real estate. S&P claimed 80% of the loan modifications that took place over the previous 3 years defaulted again within 2 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.

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hard Money Loan Closed

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

California Real Estate Investor Events:

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

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

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

Sources:
Real Estate Outlook: Existing-Home Sales Rise Again
CoreLogic Records 4.7% Drop in Home Prices in 2011
ADP: Private sector adds 170,000 jobs in January
Jobless rate drops to lowest level in almost three years
Unemployment rate falls to 8.3%
Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage Rates for 30-Year Fixed U.S. Loans Decline to Record-Low 3.87%
Housing construction spending hits 16-year low
Homeownership rate falls to 14-year low
Robo-Signing Settlement Update: Friday is Cutoff for States to Join
Foreclosures Draw Private Equity as U.S. Sells Homes
Report: Freddie Mac bets against homeowner refinancings
Obama administration details refinance plan for underwater borrowers
Senate joins House in effort to cut pay at Fannie Mae, Freddie Mac

Today’s News Synopsis:

This week’s video features a slide show of the news of the week in the world of real estate and other big news stories.  According to CoreLogic, prices for homes decreased 4.7% in 2011, making it the fifth year in a row home prices declined over the year.  Unemployment is at 8.3%, the lowest in three years with the addition of 243,000 new jobs added last month.

In The News:

DS News – “CoreLogic Records 4.7% Drop in Home Prices in 2011″ (2-2-12)

“Year-end data from CoreLogic shows home prices fell by 4.7 percent over 2011. It marks the fifth consecutive year the company has recorded an annual decline in residential property values.”

Housing Wire – “Unemployment rate falls to 8.3%” (2-3-12)

“The economy added 243,000 jobs in January and the unemployment rate fell to 8.3%, its lowest level since February 2009.  The Labor Department said large gains in professional and business services, leisure and hospitality, and manufacturing jobs drove the gains, which came in well above most analysts’ estimates. The rate in December was 8.5%.”

CNN Money - “Stealth jobs boom: 6 months, 2 million jobs” (2-3-12)

“Companies are saying the job market is getting better. Workers are saying it’s already kicked into high gear.  Friday’s jobs report showed a gain of 243,000 jobs. But a separate survey of households used to determine the unemployment rate shows much, much stronger job gains.”

Realty Times – “Average Mortgage Rates Ease Setting New Record Lows” (2-3-12)

“In Freddie Mac’s results of its Primary Mortgage Market Survey®, the average mortgage rates dropped to new all-time record lows as data on economic growth fell short of market projections. All products in the PMMS survey, except the 1-Year ARM, averaged new lows.”

Housing Wire – “Obama mortgage refinance plan accelerates equity rebuild” (2-3-12)

“One option under the most recent refinancing plan from the Obama administration would allow borrowers to not only surface from underwater but actually begin building equity in their home at a quicker pace.”

Realty Times – “Real Estate Drops But Second Home Market May See Increase” (2-3-12)

“Interest rates continue to remain low for mortgages and it looks as though the Federal Reserve will keep the rate at which banks lend to each other overnight low through 2014. The federal funds rate is expected to remain at zero to 1/4 percent for the next few years due to the depressed housing market and slow business investments.”

San Francisco Chronicle – “Mortgage rates for 30-year loans hit record low” (2-3-12)

“Rates for 30-year U.S. mortgages declined to the lowest level on record after the Obama administration announced measures to make it easier for homeowners to reduce their monthly payments by refinancing.”

Housing Wire – “Senate adds Fannie, Freddie bonus ban to Stock Act” (2-3-12)

“The Senate agreed to a resolution that would stop executive bonuses at Fannie Mae and Freddie Mac, attaching the measure to a larger congressional insider-trading bill.”

Bloomberg - “Goldman Sachs Mortgage-Backed Securities Suit Granted Class-Action Status” (2-3-12)

“A suit against Goldman Sachs Group Inc. (GS) may go forward as a class action on behalf of all investors in a $698 million mortgage-backed securities offering, a federal judge in Manhattan ruled.”

Hard Money Loan Closed

San Bernardino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $72,000 on a 2 bedroom, 2 bathroom home appraised for $120,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.

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

Looking Back:

Freddie Mac reported the average rate for 30-year mortgages increased to 4.81%. The Labor Department said jobless claims declined the previous week. Freddie Mac funded $15 billion worth of multifamily transactions through its multifamily whole loan and bond guarantee business in 2010. The Treasury Department expected the government to hit the $14.29 trillion debt limit before June 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.

Mortgage rates for 30 year fixed U.S. loans are at their lowest on record at 3.87%.  In other news, unemployment claims also decreased last week as did claims for unemployment insurance.  A bill was introduced in the Senate yesterday that would change the way employees at Fannie Mae and Freddie Mac will be paid.

In The News:

Housing Wire – “Senate joins House in effort to cut pay at Fannie Mae, Freddie Mac” (2-1-12)

“A Senate bill introduced Wednesday would place employees at Fannie Mae and Freddie Mac under a federal pay scale, similar to legislation already in the works in the House.”

Inman – “Obama administration details refinance pan for underwater borrowers” (2-1-12)

“Last week, in his State of the Union address, President Obama introduced a proposal to help millions of homeowners, who are underwater on their mortgages, refinance their loans at current low rates. Today, the administration released details of the plan.”

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

“The recovery remains “frustrating slow” in the United States, and now Europe’s debt crisis is posing additional challenges, Federal Reserve Chairman Ben Bernanke told Congress Thursday.”

Bloomberg – “Mortgage Rates for 30-Year U.S. Fixed Loans Decline to a Record-Low of 3.87%” (2-2-12)

Rates for 30-year U.S. mortgages declined to the lowest level on record after the Obama administration announced measures to make it easier for homeowners to reduce their monthly payments by refinancing.”

Housing Wire – “Jobless claims decline, lower than most estimates” (2-2-12)

“The number of Americans filing initial jobless claims declined about 3% last week, coming in lower than most analysts’ estimates and staying below 400,000.”

San Francisco Chronicle – “BofA Tumbles to 5.6% Share of Mortgages as Wells Fargo Dominates” (2-2-12)

“Bank of America Corp. lost about three-quarters of its market share in U.S. home mortgages since 2007 as the firm grappled with defective loans, while Wells Fargo & Co.’s presence almost doubled, FBR Capital Markets said.”

DS News – “Claims for Unemployment Insurance Improve as January Ends” (2-2-12)

“First time claims for unemployment insurance fell 12,000 for the week ended January 28 to 367,000, reversing half of the increase of the previous week, the Department of Labor reported Thursday.”

Bloomberg – “Obama Uses Housing Crisis as Foil to Romney’s ‘Hit-Bottom’ Strategy” (2-2-12)

“The White House hopes to help millions of homeowners lower their monthly mortgage bill with a $5 billion to $10 billion plan to set up a streamlined refinancing program for people who are current on their payments.”

Housing Wire – “PMI Group latest mortgage insurer to give Fannie Mae short-sale authority” (2-2-12)

“Fannie Mae mortgage servicers can complete short sales and deeds in lieu of foreclosure without getting separate approval from the now bankrupt mortgage insurer The PMI Group, a change that’s expected to further reduce barriers to short sales.”

DS News – “Real Estate Professionals Feeling Brunt of Recession” (2-2-12)

“The effects of the housing crisis are widespread, but nowhere do they hit home more than in the real estate community.  Eighty-eight percent of real estate professionals in a recent survey said they have lost money since 2008 or are living off significantly less income. Many are dipping into savings to make ends meet.”

Realtor Magazine – “Rural Refinance Pilot Program Announced” (2-2-12)

“The USDA is launching the Single Family Housing Guaranteed Rural Refinance Pilot Program, which is designed to help rural home owners refinance their mortgages in order to reduce monthly payments.”

Hard Money Loan Closed

San Diego, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $90,000 on a 2 bedroom, 2 bathroom home appraised for $160,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 tomorrow, February 4, 2012.

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

Looking Back:

Mortgage application volume increased 11.3% from the previous week, according to the MBA. Fannie Mae and Freddie Mac were raising risk fees they charged lenders on loans they bought for resale to investors. HOPE NOW reported 1.76 million homeowners received a mortgage modification in 2010. Statistics from DBRS showed 50 percent of loan modifications resulted in re-default.

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

According to the latest Standard & Poor’s/Case-Shiller Index, the prices of homes decreased 3.7% from last year.  In other news, the Conference Board reported consumer confidence declined again this month after having increased at the end of 2011.   The Congressional Budget Office expects taxpayers will pay $27 billion to aid Fannie and Freddie from 2013 to 2022.

In The News:

CNN Money – “Freddie Mac: A mess, and likely to stay that way” (1-30-12)

“It’s not tough to find critics of Freddie Mac and Fannie Mae on either the right or the left. But there has been little progress made in rehabilitating the mortgage giants.”

Housing Wire – “S&P/Case-Shiller Nov. home prices down 3.7% from year earlier” (1-31-12)

“The average price of a single-family home fell again in November, with decreases in 19 of the 20 largest metropolitan areas during the month, according to the Standard & Poor’s/Case-Shiller index.”

Realty Times – “California Association of REALTORS® To Build Ethics Violations Data Base” (1-31-12)

Approve that C.A.R. build a system, to be developed by staff, to create a database that contains all final findings – within the last three (3) years – of a member’s Code of Ethics and membership duty violations, including whether the member fulfilled the sanction imposed, for use by local Associations in making their decision on membership applications.”

Housing Wire – “CBO slashes cost of Fannie, Freddie over next decade” (1-31-12)

“Taxpayers will spend another $27 billion between 2013 and 2022 subsidizing Fannie Mae and Freddie Mac, according to the Congressional Budget Office estimates released Tuesday.”

DS News – “Appraisal Institute Offers Guidance on Distressed Comparables” (1-31-12)

“The Appraisal Institute recently released new guidelines to instruct its members on how to deal with distressed sales and foreclosures when seeking comparables.”

Housing Wire – “Consumer confidence retreats in January” (1-31-12)

“Consumer confidence slumped in January after rebounding in the final months of 2011, The Conference Board said in its consumer sentiment index.”

Bloomberg – “Foreclosures Draw Private Equity as U.S. Rents Homes” (1-31-12)

“Private equity firms are jumping into distressed housing as the U.S. government plans to market 200,000 foreclosed homes as rentals to speed up the economic recovery.”

Inman – “LPS asks Nevada court to throw out consumer fraud suit” (1-31-12)

“Lender Processing Services Inc., provider of real estate technology, services, and mortgage performance data, today filed a motion to dismiss a consumer fraud lawsuit against the company filed by the state of Nevada that alleges the company falsified foreclosure documents.”

Housing Wire – “Foreclosure claims dominate CFPB mortgage complaints” (1-31-12)

“More than 38% of the 2,300 mortgage complaints sent to the Consumer Financial Protection Bureau in December related to loan modification and foreclosure concerns, the largest share in this category.”

Hard Money Loan Closed

Rialto, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $125,000 on a 4 bedroom, 2.5 bathroom home appraised for $200,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.

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

Looking Back:

Rismedia reported that new home sales increased 17.5% in December of 2010.  However, the Obama Administration reported that sales were still lower than levels at the beginning of the year.  According to Bloomberg, the rate of unoccupied homes increased to 2.7%, making the number of people who own homes the lowest it had been in 10 years.  Standard and Poor’s announced that home prices were still declining and most likely would continue, according to the Realty Times.

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

In the latest survey released by the National Association of Realtors, existing home sales increased for the third month in a row.  At the same time, the latest Case-Shiller Index expects home prices will decrease another 1% this year, but they predict an overall 3.8% in the economy by 2013.  Construction on private nonresidential homes is also expected to be on the rise with the growing demand for more construction jobs.

In The News:

Bloomberg – “Construction Rises as Architects Show U.S. Nonresidential Bounce” (1-29-12)

“Private nonresidential construction may pick up this year, as demand grows for new U.S. projects.  The Architecture Billings Index held at 52 last month, a sign of expansion, according to the American Institute of Architects. The commercial and industrial component — a proxy for private building activity — climbed to 54.1 in December, the highest in 10 months, the Washington-based association said Jan. 18.”

Los Angeles Times – “Industrial property leases jumped nationally in 2011″ (1-29-12)

“New industrial real estate leases signed in 2011 returned to levels not seen since prior to the recession of 2008-09, according to year-end statistics for the nation’s industrial market compiled by a real estate brokerage.”

Housing Wire – “Home prices to fall 1% in 2012, rebound in 2013: Fiserv Case-Shiller” (1-30-12)

“The double-dip in home prices that began two years ago continued through the third quarter of 2011, according to the Fiserv (FISV: 62.61 -0.70%) Case-Shiller Indexes released Monday. However, there are signs of a recovery for 2013.”

Bloomberg – “Commercial-Mortgage Bond Rally May Have Run Out of Steam, Citigroup Says” (1-30-12)

“A rally in risky commercial-mortgage bonds may have run its course after a surge in trading, according to Citigroup Inc. (C)  Values on so-called AM and AJ securities, some of which have been cut to junk after being assigned top grades at issuance, increased “remarkably” during the first half of January, Citigroup analysts led by Jeffrey Berenbaum said in a Jan. 27 report.”

Realty Times – “Real Estate Outlook: Existing-Home Sales Rise Again” (1-30-12)

“The National Association of Realtors latest existing-home sales survey shows that sales are on the rise again. This is the third straight month of increases as well the rate rising above year ago levels.”

DS News – “Homeowner Satisfaction Rate at 72%, Highest for Short Sale Purchasers” (1-30-12)

“Seventy-two percent of homeowners say they are satisfied with homeownership, according to a recent survey of more than 1,400 homeowners conducted by HomeGain, a provider of online marketing programs that connect agents and brokers with home buyers and sellers.”

San Francisco Chronicle – “Bernanke Beats Obama for Mortgage-Bond Investors: Credit Markets” (1-30-12)

“Mortgage-bond investors have been betting that Federal Reserve Chairman Ben S. Bernanke will do more to aid housing than President Barack Obama.  Government-backed mortgage bonds are poised to return the most this month since October relative to Treasuries, with the Fed helping push yields on lower-coupon notes that guide loan rates to record lows.”

Inman – “Report: Freddie Mac bets against homeowner refinancings” (1-30-12)

“In 2010 and 2011, mortgage giant Freddie Mac invested billions of dollars on bets that homeowners with high-interest mortgages would not be able to refinance at today’s lower interest rates, according to a joint investigation conducted by NPR and ProPublica, a nonprofit, independent news agency.”

Wall Street Journal – “Warehouses Fill, Brightening Industrial Space” (1-30-12)

“One often-overlooked corner of commercial real estate showed signs of stabilizing in the fourth quarter, as healthy demand for warehouse space helped push down the industrial vacancy rate.”

Bloomberg – “CBRE Drops on Investors’ Transaction-Volume Scrutiny: San Francisco Mover” (1-30-12)

“CBRE Group Inc., the world’s largest commercial real estate services firm, fell the most in six weeks as investors focus on fourth-quarter transaction volumes ahead of earnings reports.”

Housing Wire – “New York 2011 home sales off pace, prices stabilize” (1-30-12)

“Fueled by a strong fourth quarter, home sales in New York state rebounded somewhat but still finished 3.9% behind 2010 figures. The New York State Association of Realtors said the more positive 2010 numbers likely reflect the boost from the federal homebuyers’ tax credit.”

Hard Money Loan Closed

Los Angeles, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $165,000 on a 3 bedroom, 2 bathroom home appraised for $244,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.

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

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