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

Thursday, June 17th, 2010

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thursday, June 10th, 2010

Today’s News Synopsis:

According to the NAHB, both demand and production of apartments increased from Q1 2009. Freddie Mac reports rates on 30-year fixed mortgages fell to 4.72 percent this week. RealtyTrac claims U.S. foreclosure activity decreased by 3 percent in May. Household net worth rose by 2.1 percent in the first quarter.

In The News:

NAHB - “Multifamily Builders Less Pessimistic” (6-10-10)

“The multifamily market showed signs of moving back toward stability in the first quarter of 2010, according to the latest NAHB’s Multifamily Market Index (MMI).  The current production index for market-rent apartments jumped to 30.6, 14 points higher than a year earlier, while future demand expectations for Class A apartments rose to 49.6 from 34 and for Class B to 53.1 from 43.9.  For lower-rent units and for-sale condominiums, the current production indexes rose to 38.2 and 25.0, respectively, more than 10 points higher than in the first quarter of 2009.”

Freddie Mac – “Freddie Mac: Mortgage rates hit low for year” (6-10-10)

“Rates on 30-year fixed mortgages fell this week to the lowest level of the year and were barely shy of the all-time low. Mortgage finance company Freddie Mac says the average rate sank to 4.72 percent, down from 4.79 percent last week. It was just above the record of 4.71 set last December.”

Wall Street Journal – “KB Home Buys in Inland Empire” (6-10-10)

“Builder KB Home snapped up 664 partially finished lots in California’s Inland Empire, a sign that one of the nation’s biggest boom-to-bust markets is coming back to life.”

Los Angeles Times – “Foreclosure filings decline 3% in May” (6-10-10)

“Foreclosure activity in the U.S. continued to level off in May with the number of homes caught up in some stage of the process falling 3% from April, a real estate firm said. A total of 322,920 properties received some kind of foreclosure filing last month — either default notices, scheduled auctions or bank repossessions — a 3% drop from April and an increase of less than 1% from May 2009, according to RealtyTrac in Irvine.”

San Francisco Chronicle – “Americans’ wealth rises for 4th straight quarter” (6-10-10)

“The Federal Reserve reported Thursday that household net worth rose by 2.1 percent in the first three months of this year to $54.6 trillion. It marked the fourth consecutive quarter that Americans’ wealth grew.”

Housing Wire – “RealtyTrac: Most Foreclosure Properties Not Underwater” (6-10-10)

“Of all of the foreclosures in the RealtyTrac online database, less than 50% have mortgages worth less than what is owed, said Rick Sharga, senior vice president at RealtyTrac, during a session at REO Expo, which concludes in Dallas Wednesday.”

Housing Wire – “Congress to Consider FHA Reform, Mortgage Insurance Hike” (6-10-10)

“House Resolution (HR) 5072, the FHA Reform Act of 2010, was reported to the House of Representatives Tuesday and could begin facing votes as early as this week. The FHA reform bill would raise the annual mortgage insurance premium to 1.55% from 0.55%.”

Bloomberg - “Subprime Delinquencies Show Clear ‘Positive Shift,’ RBS Says” (6-10-10)

“The proportion of U.S. homeowners turning delinquent on mortgages backing the securities that roiled the global financial system has tumbled in the past three months, even after accounting for a typical seasonal improvement, according to RBS Securities Inc. Of borrowers with subprime loans in 2007-issued bonds who had never missed payments, an average of 2.6 percent fell behind each month, a drop from 3.7 percent in February, representing a 15 percent decline after seasonal adjustments, according to RBS analysts.”

Bloomberg - “Banks Face Short-Sale Fraud as Home ‘Flopping’ Rises” (6-10-10)

“Sergio Natera and Anna McElaney are scheduled to be sentenced in Hartford’s federal court in August after pleading guilty to fraud. Their crime involved persuading lenders to approve the sale of homes for less than the balance owed –known as a short sale — without disclosing that there were better offers. They then flipped the houses for a profit. The Federal Bureau of Investigation, the California Department of Real Estate and mortgage finance company Freddie Mac have warned that such schemes may be spreading after a plunge in values left homeowners owing more than their properties are worth. The scams threaten to deepen losses for lenders that are increasingly agreeing to short sales as an alternative to more costly foreclosures.”

Looking Back:

One year ago, 2,771 new homes and condominiums were sold within one month in the subdivisions tracked by Costa Mesa-based HWMI. The MBA reported that mortgage application volume decreased by 7.2 percent in one week. Steven Kandarian said commercial mortgage defaults will rise in 2011 to 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.

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

Tuesday, June 8th, 2010

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Looking Back:

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

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

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The Norris Group Real Estate News Roundup 6/4/10

Friday, June 4th, 2010

Sources:
http://www.dsnews.com/articles/banks-have-recognized-60-of-expected-loan-charge-offs-moodys-2010-06-03
http://www.dsnews.com/articles/more-than-172000-loan-mods-completed-in-april-hope-now-2010-06-03
http://www.hopenow.com/industry-data/HOPE%20NOW%20Data%20Report%20(April)%2005-28-2010.pdf
http://www.dsnews.com/articles/bank-of-americas-principal-reduction-program-is-underway-2010-06-02
http://www.car.org/newsstand/newsreleases/1178senatevote/
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0FzoElM6T4A&pos=2
http://www.housingwire.com/2010/06/02/freddie-mac-details-hafa-initiative-for-distressed-homeowners
http://www.housingwire.com/2010/06/02/california-set-to-vote-on-foreclosure-mediation-bill

Today’s News Synopsis:

The California Senate passed a new bill requiring mortgage servicers to notify borrowers of a right to seek options that would avoid foreclosure. Freddie Mac reports the average interest rate for 30-year FRMs increased by 0.01 percent from last week. Total U.S. non-farm payrolls grew by 431,000 in May. According to SNL Financial, the total value of foreclosed properties held by US banks reached $41.5bn in Q110.

In The News:

Housing Wire - “California Senate Passes Foreclosure Legislation” (6-4-10)

“Senate Bill (SB) 1275 requires mortgage servicers to notify borrowers of a right to seek options that would avoid foreclosure and attach an application for a loan modification or other alternatives before issuing a notice of default (NOD). Also before filing an NOD, servicers must evaluate a borrower who submits a written request for a loan modification. For those denied one, a separate letter must be mailed to the borrower informing them of the denial and reasons why.”

Housing Wire – “CoreLogic Expands Data Coverage to Reach 3,100 Counties” (6-4-10)

“CoreLogic (CLGX: 20.26 -0.39%) the data analytics group spun off by First American Financial (FAF: 13.70 -0.94%), expanded its data-set coverage to 3,100 counties, representing 99.8% of the US population. According to CoreLogic, the public record county assessor data includes land dimensions, legal descriptions, ownership, and tax and value information. The company then links the information to current and historic transaction data such as deeds, mortgages, pre-foreclosure and other involuntary liens.”

Housing Wire – “Rep Sherman Joins Call for Credit-Rating Agency Reform” (6-4-10)

“Credit-rating agencies (CRAs) are often criticized for assigning triple-A status to risk-laden securities that were ultimately written down when the underlying subprime and Alt-A mortgages defaulted. Sherman compared this practice with a baseball team picking its own umpire.”

Bloomberg - “Fannie Mae’s Duncan Says Homebuyer Tax Credit Shifted Demand” (6-4-10)

“The federal homebuyer tax credit shifted demand in the U.S. housing market without having a lasting impact on prices, according to Douglas Duncan, chief economist of Fannie Mae, the largest mortgage financier.”

Realty Times – “Transform Your Home with Home Staging” (6-4-10)

“De-clutter: I know we all accumulate lots of clutter and then get used to living with it. But really, clutter is a big distraction for buyers. Often they simply can’t imagine what the home would look like without all that clutter. So, make it easy for them. Start with a clutter-free home when you list it for sale. De-Personalize: do you want buyers spending more time looking at your personal photos or your home? Easy answer…so, put away the photos and trinkets. Besides, you’re moving…you need to pack them up anyway.”

Realty Times – “Long- and Short-Term Rates Nearly Unchanged From Last Week” (6-4-10)

“Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.79 percent with an average 0.8 point for the week ending June 3, 2010, up slightly from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM averaged 5.29 percent.”

Housing Wire – “Day of Swings Puts Dow Below 10,000 at Close” (6-4-10)

“The Dow Jones Industrial Average (DJIA) lost around 324 points on the day to close below 10,000, marking one of the worst daily declines all year. The fall escalated on disappointing jobs data published this morning by the Department of Labor (DOL). Total non-farm payrolls grew by 431,000 in May as the 2010 Census added 411,000 temporary employees, according to the DOL. The figures fell short of economist expectations. Private-sector employment grew by more than 41,000 in May, below analyst projections of 55,000.”

Housing Wire – “Foreclosed Properties Held by Banks Up 12.4% in Q110: SNL Financial” (6-4-10)

“Foreclosed properties held by US banks reached $41.5bn in Q110, a 12.4% increase from the previous quarter, according to data analysis firm SNL Financial. The amount of foreclosed properties jumped from $36.9bn at the end of 2009. At the end of the first quarter in 2008, that number was $11.7bn. Andrew Schukman, an analyst at SNL Financial said that the amount of one-to-four family properties in some stage of the foreclosure process (and not yet an REO) reached $78.6bn in Q110, up 9.1% from the end of last year.”

Looking Back:

One year ago, rates on 30-year home loans surged above 5 percent. Santa Maria became the latest California jurisdiction to reduce development impact fees it charges homebuilders. Economists at IHS Global Insight claimed that Orange County homes were 11% undervalued in the first quarter of 2009. Statistics from The Pew Hispanic Center showed that homeownership rates amongst minorities had climbed significantly since 1995.

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

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The Norris Group Real Estate News Roundup 5/27/10

Thursday, May 27th, 2010

Today’s News Synopsis:

According to the San Francisco city Assessor-Recorder, 6,462 residential property owners in San Francisco applied for temporary property tax breaks this year. Freddie Mac reports the average U.S. rate for a 30-year fixed mortgage fell to 4.78 percent for the week. Statistics from FHFA show the average interest rate on conventional 30-year FRM with a principal of $417,000 or less increased to 5.12% this month.

In The News:

San Francisco Chronicle – “Thousands more in S.F. seek property tax breaks” (5-27-10)

“In another sign that the economy is taking a long time to rebound, a staggering 6,462 residential property owners in San Francisco applied for temporary property tax breaks this year, city Assessor-Recorder Phil Ting reported Wednesday.”

Bloomberg - “U.S. Home Loan Rates Near Record Low on Europe Crisis” (5-27-10)

“Europe’s debt crisis is translating into lower mortgage rates for Americans as investors fleeing to the refuge of U.S. bonds push borrowing costs close to December’s record low. The average U.S. rate for a 30-year fixed mortgage fell to 4.78 percent for the week ended today from 4.84 percent, Freddie Mac said in a statement today. The record low is 4.71 percent. This week’s average 15-year fixed rate was 4.21 percent, the McLean, Virginia-based mortgage finance company said.”

Bloomberg - “Mortgage Lenders Seek Relief on Bad Debt Repurchases” (5-27-10)

“Mortgage lenders are seeking relief from Fannie Mae and Freddie Mac as the government-supported companies force them to buy back more soured debt, said John Courson, president of the industry’s largest trade group.”

Housing Wire – “FHFA Proposes Mortgage Purchase Goals for Home Loan Banks” (5-27-10)

“The FHFA is seeking comment on the establishment of three purchase money mortgage goals and one refinancing mortgage goal. The goals for purchase mortgages would separately measure performance on purchase mortgages for low-income families, for families in low-income areas, and for very-low-income families. The goal for refinance mortgages would measure performance on refinancings for low-income families.”

Housing Wire – “FHFA Sees Interest Rates Tick up in April” (5-27-10)

“According to the FHFA monthly report, the average interest rate on conventional 30-year FRM with a principal of $417,000 or less increased 3 basis points (bps) to 5.12% from March’s average of 5.09%. The average rate for a 15-year FRM of $417,000 decreased 5 bps to 4.52% in April.”

Looking Back:

One year ago, the NAR reported existing home sales increased by 2.9 percent. Mortgage application volume decreased by 14.2 percent on a seasonally adjusted basis from the previous week. The average price of a U.S. home fell 7.1 percent in the first quarter of 2009. Yields on Washington-based Fannie Mae’s current-coupon 30- year fixed-rate mortgage bonds climbed to 4.51 percent.

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

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The Norris Group Real Estate News Roundup 5/26/10

Wednesday, May 26th, 2010

Today’s News Synopsis:

The Commerce Department reports sales of new single-family homes rose 14.8 percent in April. Mortgage application volume increased 11.3 percent on a seasonally adjusted basis from one week earlier. The NAR predicts commercial vacancy rates will increase from 16.9 percent in the first quarter of this year to 17.6 percent in the first quarter of 2011. According to Freddie Mac, home prices declined 1.1% in quarter 1 of 2010 compared to the same quarter one year ago.

In The News:

Washington Post - “New home sales jump 14.8 percent in April” (5-26-10)

“The sales of new single-family homes rose 14.8 percent in April compared with the previous month to a seasonally adjusted annual rate of 504,000, according to Commerce Department data. It was up 47.8 percent compared to the same period a year ago.”

Mortgage Bankers Association - “Mortgage Refinance Applications Continue to Increase, Purchase Applications Decline Further in Latest MBA Weekly Survey” (5-26-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 21, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 11.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10.3 percent compared with the previous week.”

NAR - “Commercial Real Estate Vacancies to Peak Near Early 2011″ (5-26-10)

“With an elevated level of sublease space available, vacancy rates in the office sector are projected to increase from 16.9 percent in the first quarter of this year to 17.6 percent in the first quarter of 2011, but should ease later next year. Annual office rent is likely to fall 2.3 percent this year and decline another 2.1 percent in 2011. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is forecast to be a negative 24.6 million square feet this year and then a positive 25.5 million in 2011.”

Mortgage Bankers Association – “MBA Study Examines Industry Risk Management Practices That Contributed to Housing Crisis” (5-26-10)

“Multiple factors including poor data, incomplete performance metrics, and, short-term focus and unrealistic optimism among senior business managers contributed to the collapse in the US housing and mortgage markets, according to a study released today by the Mortgage Bankers Association (MBA).”

Housing Wire – “Freddie Sees House Prices Down Slightly in Q110″ (5-26-10)

“Home prices declined 1.1% in Q110 compared to the same quarter one year ago, according to purchase-only edition of Freddie Mac’s (FRE: 1.17 +1.74%) Conventional Mortgage Home Price Index (CMHPI). Compared to Q409, prices are down 2.1%. However, despite the declines, prices in some regions of the country are still above 2005 levels.”

Bloomberg - “Toll Brothers Buys Land as Quarterly Home Orders Rise” (5-26-10)

“Toll Brothers Inc., the largest U.S. luxury homebuilder, increased its land holdings for the first time in four years in anticipation of a recovery in the market.”

Orange County Register – “4 big local landlords cut rent 5.3%” (5-26-10)

“Equity Residential, Essex Property, AIMCO and AvalonBay — own a combined 39,577 units in Southern California. (That’s a visual taste of their Orange County offerings above. Click for larger images!) Thanks to my trusty spreadsheet, this foursome’s collective SoCal rents — factoring in their relative number of local units owned — dropped 5.3% vs. a year ago. (RealFacts, which surveys numerous owners of large complexes, had Orange County rents down 4.8% in the year ended in the first quarter.)”

Orange County Register – “O.C. real estate giant to split into two companies” (5-26-10)

“The legacy component, consisting mainly of its title insurance and other insurance-related businesses, will be renamed First American Financial, trading on the New York Stock Exchange under the symbol of FAF. The newer, technologically advanced real estate and consumer data and analysis businesses formerly known as First American CoreLogic will form the second company, operating simply as CoreLogic. Its stock symbol will be CLGX.”

Bloomberg - “Home Prices in U.S. Cities Rise Less Than Forecast” (5-25-10)

“Home prices in 20 U.S. cities rose less than forecast in March from a year earlier, a sign the housing recovery is cooling. The S&P/Case-Shiller home-price index of property values in 20 cities increased 2.3 percent from March 2009, the group said today in New York. The median forecast of economists surveyed by Bloomberg News projected a 2.5 percent advance. Nationally, prices last quarter dropped 3.2 percent from the previous three months.”

Bloomberg - “Home Prices Decline 3.1% in First Quarter, FHFA Says” (5-25-10)

“U.S. home prices fell 3.1 percent in the first quarter from a year earlier as record foreclosures added to the inventory of houses on the market. The annual drop was double the 1.5 percent decline in the fourth quarter, the Federal Housing Finance Agency said today in a report. Measured from the prior three months, prices fell 1.9 percent in the first quarter, the Washington-based agency said.”

Housing Wire – “Moody’s Says Court Ruling Gives FDIC Broad Powers Over Failed Bank Assets” (5-25-10)

“A ruling by the Eleventh Circuit Court of Appeals is giving the Federal Deposit Insurance Corp. (FDIC) broad-reaching powers to dispose of the assets of failed banks, according to Moody’s Investors Service. In its latest credit outlook report, the rating agency said the ruling is likely to up the risk to bank-sponsored asset-backed securities (ABS), as recourse to compensation will be diminished, leaving involved parties little alternative than to sue the FDIC in instances of alleged grievance over the handling of these assets.”

Housing Wire – “Freddie Production Stays Flat Despite Delinquent Buy-Outs, Analyst Says” (5-25-10)

“The aggregate unpaid principal balance of Freddie’s mortgage-related investments portfolio grew by $3.9bn in the month, due to delinquent mortgage buyouts from Participation Certificate (PC) pools first announced in February. The total portfolio size is back to year-end 2009 levels, but securities holdings are down $61bn to accommodate the loan purchases. Net production of Freddie pass-throughs this year — including the effect of the buy backs — is flat, according to Jim Vogel, a strategist at FTN Financial, a financial services provider for the investment and banking community.”

Housing Wire – “New $3bn Foreclosure Prevention Program Added to Wall Street Reform Bill” (5-25-10)

“The Senate passed the Restoring American Financial Stability Act last week, approving a new program that would reduce mortgage payments for the unemployed. The program would provide $3bn from the Troubled Asset Relief Program (TARP) to lend up to $50,000 to unemployed homeowners, who could reasonably resume making payments again within two years. The program was modeled after the Homeowners’ Emergency Mortgage Assistance Program (HEMAP) in Pennsylvania.”

Looking Back:

One year ago, the S&P/Case-Shiller home-price index decreased 18.7 percent from March 2008. Freddie Mac estimated that the U.S. housing slump would end in June 2009. Orange County building industry lost 32,300 construction jobs from the September 2007 peak. President Obama signed a $500 million fraud protection bill.

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

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The Norris Group Real Estate News Roundup 5/24/10

Monday, May 24th, 2010

Today’s News Synopsis:

According to the NAR, Existing home sales increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April. The CIRB reports permits were pulled for 3,314 total housing units in April. Statistics from CAR show California home sales decreased 8.1 percent in April. The Federal Reserve doesn’t intend to sell any of its assets until after it begins raising interest rates.

In The News:

NAR - “Existing-Home Sales Continue to Improve in April” (5-24-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.”

CBIA - “California Housing Starts Dip in April, CBIA Announces” (5-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,314 total housing units in April, down 6 percent from the same month a year ago and down 9 percent from March. Permits for single-family homes totaled 2,252, down 6 percent from April 2009 and down 5 percent from the previous month, while multifamily permits totaled 1,062, down 7 percent from a year ago and down 16 percent from March.”

CAR - “April 2010 sales and price report” (5-24-10)

“Home sales decreased 8.1 percent in April in California compared with the same period a year ago, while the median price of an existing home rose 21 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Wall Street Journal – “Mortgage Rates Decline” (5-24-10)

“The housing industry had been bracing for months for a period of rising mortgage rates, triggered by the end of the Federal Reserve’s $1.25 trillion mortgage-securities purchase program. Conventional wisdom held that mortgage rates would rise as the Fed pulled back from propping up the market. Instead, many in the industry now say rates could drift as low as 4.5% this summer from 4.86% now, instead of rising to 6% as some economists projected, making for significantly lower payments for Americans buying homes or refinancing their mortgages.”

Bloomberg - “Fed Won’t Sell Mortgage-Backed Assets Until it Raises Rates” (5-24-10)

“The Federal Reserve doesn’t intend to sell any of its assets, including more than $1.1 trillion in mortgage-backed securities, until after it begins raising interest rates, the central bank said in a report to Congress.”

Housing Wire – “FDIC Sells $233m of Commercial Mortgage-Backed Notes” (5-24-10)

“The Federal Deposit Insurance Corp. (FDIC) sold $233m in notes backed by performing and non-performing commercial real estate loans from 22 financial institutions under receivership. The underlying mortgages bear an aggregate unpaid principal balance of $1bn.”

Bloomberg - “FHA Home-Financing Volume Sign of ‘Very Sick System’” (5-24-10)

“The FHA, which backs loans with down payments as low as 3.5 percent, insured $52.5 billion of home-purchase mortgages in the first quarter, compared with $46 billion of purchases of the debt by Fannie Mae and Freddie Mac, according to data compiled by Washington-based Potomac Partners. The FHA and Fannie Mae and Freddie Mac, which regulators seized in 2008, have been financing more than 90 percent of U.S. home lending after a retreat by banks and the collapse of the market for mortgage bonds without government-backed guarantees.”

Bloomberg - “Defaults on Apartment-Building Loans Set Record for U.S. Banks” (5-24-10)

“Defaults on apartment-building mortgages held by U.S. banks climbed to a record 4.6 percent in the first quarter, almost twice the year-earlier level, as more borrowers failed to repay debt approved near the market peak, said Real Capital Analytics Inc. in a report. Defaults on so-called multifamily mortgages rose from 4.4 percent in the fourth quarter and from 2.4 percent during the same period in 2009, the New York-based real estate research firm said today. Commercial-mortgage defaults also rose in the first quarter for loans against office, retail, hotel and industrial properties, Real Capital said.”

Bloomberg - “U.S. Subprime Hunt Targets Goldman, May Skip Cassano: Timeline” (5-24-10)

“Federal prosecutors don’t plan to bring charges against former American International Group Inc. executive Joseph Cassano after a two-year probe of the insurer’s collapse, according to a person familiar with the investigation. Justice Department investigators found there is insufficient evidence to charge Cassano, the former head of AIG’s Financial Products division, the person said.”

Inman - “3 fatal flaws of real estate negotiation” (5-24-10)

“Agents have a wealth of places both online and offline to find strategies that work. Agent blogging sites are rich with great suggestions, many of which are from the best agents in the business. Nevertheless, many of these strategies still use manipulation or one-upmanship. The result is that these old approaches often undermine the agent’s success.”

My Desert – “Short sales on the rise” (5-23-10)

“Real estate experts say they’re seeing spurts of multiple bids and cash buys on homes priced below $250,000 by investors with deep pockets, buyers from other states or residents with equity in their home, a move-up mentality or frazzled nerves from a volatile stock market.”

Washington Post – “Anger at the root of mortgage default problem, study finds” (5-22-10)

“Now White has published a paper based on the personal accounts of 356 strategic defaulters and homeowners on the verge of doing the same. His finding: People who intentionally default on their loans are not as economically rational or calculating in their decision-making as widely thought. In fact, he said, their decisions to pull the plug ‘may not turn out to be economically rational.’ But they walk anyway, in large part because they are at the end of their emotional rope. They have transitioned from feelings of anxiety and hopelessness to outright anger at their lenders, the government and a financial system they consider unfair.”

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

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

Thursday, May 20th, 2010

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Looking Back:

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

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

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The Norris Group Real Estate News Roundup 5/13/10

Thursday, May 13th, 2010

Today’s News Synopsis:

According to RealtyTrac, the total number of national foreclosures decreased by 9 percent in March. Economists Lawrence Yun and Mark Zandi predict that mortgage rates will remain historically low over the next few years. CAR reports the minimum household income needed to purchase an entry-level home at $246,270 in California in the first quarter of 2010 was $41,540. Statistics from Freddie Mac show the average rate on a 30-year fixed rate mortgage dipped to 4.93 percent.

In The News:

The Atlantic – “Foreclosures Declined 9% in April” (5-13-10)

“Fewer Americans lost their homes in April, though the numbers are still alarmingly high at 333,837 foreclosed properties nationwide, according to foreclosure data specialist RealtyTrac. This number was 9% lower than the record high hit in March. So April’s decline, while relatively good news, doesn’t quite get foreclosures back down to pre-March levels.”

NAR - “Two Economists Project Improving Housing Market but Timing Uncertain” (5-13-10)

“Both Lawrence Yun, NAR chief economist, and Mark Zandi, chief economist and co-founder of Moody’s Economy.com, agreed that job creation is key to an economic and housing recovery, with job creation expected as the year progresses, but they differed somewhat on the impact that foreclosures will have on home price stabilization. Both project that mortgage interest rates will remain historically low, the availability of jumbo loans will improve and home sales will rise over the next few years.”

CBIA - “California New-Home Sales Rise From February, CBIA Announces” (5-13-10)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 13 percent above February, but fell 31 percent below March 2009. During March, 2,189 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 1,938 in February and 3,192 in March 2009. Sales of single-family homes were up by 5 percent from the previous month, but down 36 percent from the same month a year ago. Sales of townhomes and ‘plexes’ – duplexes, triplexes, etc. – rose 24 percent from February but were off by 32 percent from March 2009, while sales of condominiums were up 37 percent from the previous month, but were 16 percent lower than a year ago.”

CAR - “Entry-level housing affordability stood at 66 percent in Q1 2010″ (5-13-10)

“The minimum household income needed to purchase an entry-level home at $246,270 in California in the first quarter of 2010 was $41,540, based on an adjustable effective interest rate of 4.33 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,380 for the fourth quarter of 2010. At $41,540, the minimum qualifying income was $3,910 greater than a year earlier when households needed $37,630 to qualify for a loan on an entry-level home.”

Sign On San Diego – “Mortgage rates drop to lowest level this year” (5-13-10)

“Mortgage rates fell this week to the lowest level of the year, as rates fell on U.S. government securities. Fixed mortgage rates closely track interest rates paid on long-term Treasury bonds. The average rate on a 30-year fixed rate mortgage dipped to 4.93 percent this week from 5 percent a week earlier, Freddie Mac said Thursday. It was the lowest level since mid-December, when rates averaged 4.81 percent.”

Housing Wire – “RealtyTrac’s Daren Blomquist Calls for Shadow Inventory Clearance” (5-13-10)

“I think the year-over-year decrease in national foreclosure activity in April is a definite sign that there is an end in sight, but on the other hand the record REO numbers show that we’ve got a lot of backlogged inventory stopped up in the foreclosure process that needs to be cleared before we can return to a balanced, healthy market.”

Housing Wire – “Dodd Bill Amendment Will Assign Credit-Rating Agencies to Deals” (5-13-10)

“The US Senate today approved in a 64-35 vote an amendment by Sen. Al Franken (D-MN) on credit ratings to be added to S 3217, the Restoring American Financial Stability Act sponsored by Sen. Chris Dodd (D-CT). The amendment would instruct the Securities and Exchange Commission (SEC) to establish a self-regulatory organization to assign credit-rating agencies (CRAs) to provide initial credit ratings on financial products. It essentially creates a board to assign CRAs to securities, to prevent firms from ’shopping around’ for the highest ratings.”

Orange County Register – “O.C. construction recovery 6 years away” (5-13-10)

“Orange County won’t get back to pre-recession levels of employment in the construction business until 2016, according the Cal State Long Beach’s 2010 forecast released today. Construction employment hit 107,175 at the peak in 2006. The forecast projects employment in the sector will drop to 66,691 this year before bottoming at 65,312 in 2011.”

Looking Back:

One year ago, the national share of home sales above $750,000 fell from 4.4 percent in 2007 to approximately 2.3 percent in 2009. The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April 2009. General Growth Properties received approval for a $400 billion dollar loan to aid their recovery from bankruptcy. Fitch Ratings predicted that home prices would by 36 percent within 18 months of May 2009.

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The Norris Group Real Estate News Roundup 5/12/10

Wednesday, May 12th, 2010

Today’s News Synopsis:

The NAHB reports that builder confidence increased from Q1 2009, but is still low. The MBA’s weekly survey shows that mortgage application volume increased by 3.4 percent. According to Freddie Mac, of all borrowers who had 30-year FRMs, 75% refinanced into a new 30-year FRM. Barclays estimates that foreclosure shadow inventory should peak during the summer of 2010.

In The News:

NAHB - “Active Adult Home Builder Activity, Confidence Remain Low” (5-12-10)

“The 55+ single-family HMI measures builder sentiments based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market.  A number greater than 50 indicates that more builders view conditions as good than poor. Although the index recorded a slight rise in the first quarter of 2010 – moving up two points to 19 from its 2009 Q1 level of 17 – the level of confidence remains low.”

Mortgage Bankers Association – “Refinance Applications Surge, Purchase Applications Drop in Latest MBA Weekly Survey” (5-12-10)

“The Refinance Index increased 14.8 percent from the previous week and the seasonally adjusted Purchase Index decreased 9.5 percent from one week earlier.  The unadjusted Purchase Index decreased 8.9 percent compared with the previous week and was 0.6 percent lower than the same week one year ago. The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 7, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 3.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 3.4 percent compared with the previous week.”

Inman - “More U.S. residents on the move” (5-12-10)

“The percentage of U.S. residents who moved between 2008 and 2009 jumped to 12.5 percent (37.1 million people), according to a report by the U.S. Census Bureau. That increase comes after a record-low move rate between 2007 and 2008: 11.9 percent, or 35.2 million people. The bureau’s data comes from the 2009 Current Population Survey conducted between February and April every year at about 100,000 U.S. addresses. It includes residents who are at least 1 year old.”

Housing Wire – “Freddie Mortgage Refinancing Dominated by Fixed-Rate Products” (5-12-10)

“Of borrowers who had 30-year FRMs, 75% refinanced into a new 30-year FRM, while 15% opted for a 15-year FRM and the remaining 10% chose a 20-year FRM. Freddie said the combined 25% of 30-year borrowers that refinanced into a shorter-term loan is the most since Q304, when 30% of 30-year borrowers refinanced into a balloon mortgage or shorter-term FRM.”

Housing Wire – “Shadow Inventory To Peak in Summer of 2010: Barclays” (5-12-10)

“The shadow inventory of foreclosures should peak in the summer of 2010 before falling gradually in the later months, according to a new report from Barclays Capital. Barclays defines the shadow inventory of foreclosures as loans in 90-plus day delinquency or already in the foreclosure process. According to the report, there are currently 2.4m loans in 90-plus day delinquency and another 2.1m in foreclosure, totaling 4.5m in the shadow inventory.”

Housing Wire – “End in Sight for General Growth Bankruptcy” (5-12-10)

“The end is in sight, as a plan is in place for General Growth Properties (GGP: 14.96 +0.20%) to emerge from bankruptcy as early as this summer. The judge overseeing the case approved bidding procedures and the issuance of warrants to a group of investors led by Brookfield Asset Management (BAM: 25.49 +1.03%).”

Bloomberg - “‘Perfect Quarter’ at Four U.S. Banks Shows Fed-Fueled Revival” (5-12-10)

“Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc., the first, second and fifth-biggest U.S. banks by assets, all said in regulatory filings that they had zero days of trading losses in the first quarter. Citigroup Inc., the third-largest, doesn’t break out its daily trading revenue by quarter. It recorded a profit on each trading day, two people with knowledge of the results said.”

Bloomberg - “Morgan Stanley’s Gorman Denies Bank Misled CDO Buyers” (5-12-10)

“Morgan Stanley Chief Executive Officer James Gorman denied allegations the U.S. bank misled investors about mortgage derivatives it sold them. The firm is being probed by U.S. prosecutors over whether the bank misled clients when it sold them collateralized debt obligations as its own traders bet that the value of the securities would drop, the Wall Street Journal reported today. The New York-based firm hasn’t been contacted by the Justice Department, Gorman told reporters in Tokyo today.”

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