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

Friday, December 10th, 2010



Resources:
Zillow: Home values crater by $1.7 trillion in 2010
Fitch sees 10% drop in home prices in 2011, negative outlook for MBS
U.S. Home Prices to Fall Up to 11% Before 2012 Bottom, Morgan Stanley Says
Economic recovery to stay muted
US Housing Market To Rebound In 2011 -Freddie Mac Economist
Chicago Fed sees housing sector improvement in 2011
Own-Rent Analysis
U.S. Mortgage Delinquency Rate Could Fall to 5% in ’11
Fannie, Freddie Pressed on Mortgages
Fannie Mae to suspend foreclosure evictions for the holidays
Defending the Mortgage Interest Deduction: The Facts Ad

Today’s News Synopsis:

Contrary to many recent forecasts regarding home price declines, Local Market Monitor believes many housing markets have bottomed, and may even improve over the next 2 years. Fitch Ratings reports delinquency rates on CMBS rose to 7.96% in November. American household net worth rose $1.2 trillion in the 3rd quarter.

In The News:

Washington Post – “Housing agencies clash over mortgage-relief program” (12-10-10)

“The Federal Housing Administration says the program could avert foreclosures, but the Federal Housing Finance Agency has concerns that the program, if expanded to include the government-controlled mortgage giants Fannie Mae and Freddie Mac, could be a logistical nightmare that would cost taxpayers too much, the sources said.”

Wall Street Journal – “BofA Restarts Some Foreclosures” (12-10-10)

“The bank instructed its foreclosure attorneys this week to prepare new affidavits in 7,800 cases where court approval is required to foreclose on a home, out of a total of 102,000 frozen by the bank amid documentation concerns. In states where no court approval is required, attorneys were asked to lift the hold on 8,000 delayed foreclosure sales out of 30,000.”

Housing Wire – “Local Market Monitor finds many local markets hit bottom in 3Q” (12-10-10)

“Local Market Monitor reported a ‘definite bottom’ in Southern California, specifically the San Francisco Bay area, where the average home price stands at $642,159, a 17% drop from the peak in the third quarter of 2006. Analysts forecast that price to hold over the next year and possibly increase 1% over the next two years.”

Housing Wire – “Fitch Ratings says CMBS delinquencies rose to 7.96% in November” (12-10-10)

“The number of delinquencies in commercial mortgage-backed securities rose last month with increases across all property types, according to Fitch Ratings. Analysts said the delinquency rate rose to 7.96% in November from 7.78% the prior month led by $1.6 billion of new defaults on office- and retail-backed loans.”

Housing Wire – “Households and financial institutions decrease debt in 3Q” (12-10-10)

“American household net worth increased by $1.2 trillion in the third quarter as a result of debt deleveraging. According to the funds flow report, the average household net worth was $54.9 trillion, up from $53.7 trillion in the previous quarter. Net worth is measured as the difference between household assets and liabilities.”

Housing Wire – “Altos Research suspects government may eventually take total control of GSEs” (12-10-10)

“Real estate statistics firm Altos Research suggests the United States government may lean toward gaining complete control of government-sponsored enterprises Fannie Mae and Freddie Mac.”

Realty Times – “ARMs Providing Unexpected Relief for Some Home Owners” (12-10-10)

“in recent weeks, for conforming, 30-year mortgages, the interest rate on FRMs have averaged about one percentage point higher than the 5-year Treasury indexed ARM. Fixed rate mortgages for conforming loans averaged 4.40 percent vs. 3.45 percent for the 5-year Treasury indexed ARM, according to Freddie Mac’s Nov. 24 Primary Mortgage Market Survey.”

Looking Back:

One year ago, foreclosure activity decreased  by 8 percent in November. Hanley Wood Market Intelligence reported that Orange County builders had their first positive month in October 09, after 13 months of contract declines. A survey from HomeGain showed that 48 percent of agents and brokers believe that home prices would stay the same, and 24 percent believe that prices would increase.  Data from the U.S. Treasury Department showed that 31,382 of the 1 million three-month modifications had become permanent.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 8/3/10

Tuesday, August 3rd, 2010

Today’s News Synopsis

According to the NAR, pending home sales declined 2.6 percent in June. Data from the Southern California Multiple Listing Service shows that 25 percent of home sold in Orange County are sold for less than the owner in June went for less than the seller owed on the mortgage. Zillow reports the average 30-year mortgage rate decreased to 4.28 percent from last week. 84 percent of buyers begin searching for homes online.

In The News:

NAR - “Pending Home Sales Ease in Post-Tax Credit Market” (8-3-10)

“The Pending Home Sales Index,* a forward-looking indicator, declined 2.6 percent to 75.7 based on contracts signed in June from an upwardly revised level of 77.7 in May, and is 18.6 percent below June 2009 when it was 93.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.”

Orange County Register – “Short sales top 700 in June” (8-3-10)

“One out of every four homes sold in Orange County in June went for less than the seller owed on the mortgage, according to the latest figures from the Southern California Multiple Listing Service. Thanks to falling home prices, about 14% to 19% of all O.C. homeowners owe more for their homes than they’re worth. In a short sale, lenders eat the difference between the amount paid and the amount owed.”

Housing Wire – “Zillow: Rate on 30-Year-Mortgage Drops to Record Low Week-to-Week” (8-3-10)

“The 30-year fixed-mortgage rate (FRM) dropped week-to-week nationally averaging 4.28%, according to Zillow Mortgage Marketplace’s weekly update. This is down 0.1% and a new record low according to their data. Last week’s averages remained steady.”

Housing Wire – “Fannie Launches Distressed Borrower Education Site” (8-3-10)

“Fannie Mae today is launching a borrower-facing outreach site designed to educate distressed homeowners on potential retention strategies and foreclosure alternatives. The online education resource — available in both English and Spanish — offers calculators to demonstrate to borrowers the mechanics of refinance, repayment, forbearance and modification options. It also offers information on Fannie’s Deed-For-Lease program, which allows borrowers to become renters in the same property after pursing deed-in-lieu of foreclosure.”

Bloomberg - “Banks `Throw in Towel’ to Add Most Mortgage Bonds in 18 Months” (8-3-10)

“The biggest banks are adding government-backed mortgage bonds at the fastest pace in 18 months, breaking with an unusual pattern in which they shunned the debt as their loan portfolios shrank during the economic slump, according to Barclays Plc. Large U.S. commercial banks added $51.4 billion of so- called agency mortgage-backed securities in the two weeks ended July 21, according to the latest data released by the Federal Reserve.”

Orange County Register – “Does unemployment pay mean no loan?” (8-3-10)

“No, you will not not qualify because you filed for unemployment insurance last year, or the year before. We are getting fairly used to seeing income streams in which our clients may have been unemployed for part of the previous two years. While we cannot use the unemployment income (**asterisk alert** : keep reading for when we can use this income) your receiving it does not disqualify you from qualifying. We will need to show a two year history of employment so if you were unemployed for three months we will need to show employment going back at least 27 months.”

Realty Times - “Staging a Photo Ready Home” (8-3-10)

“Your home’s first impression may not be one that is face to face with a prospective buyer. In today’s world, 84 percent (National Association of Realtors) of home buyers start their search online. That’s an impressive figure, and one that means your home needs to make a strong virtual impression.”

Realty Times – “California Law To Require Carbon Monoxide Detectors” (8-3-10)

“On May 7, 2010, California Governor Arnold Schwarzenegger signed into law Senate Bill 183 (Lowenthal), a bill that will require the placement of carbon monoxide detectors in all California dwelling units. The bill also requires that the presence or absence of these devices must be disclosed when residential real estate is transferred.”

Looking Back:

One year ago, construction spending increased by 0.3 percent within one month. The chief economist of the CAR predicted the housing market had not bottomed. Fannie Mae issuance of mortgage-backed securities jumped 44% in June 2009.

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

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

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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The Norris Group Real Estate News Roundup 4/27/10

Tuesday, April 27th, 2010

Today’s News Synopsis:

The S&P Index shows home prices increased in February. Speculators believe the Federal Reserve will keep interest rates at the current low. The LexisNexis Mortgage Asset Research Institute reports that fraud increased by 7 percent last year. According to the FHFA, the average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09% this month.

In The News:

Business Week – “Home price index shows 1st annual gain in 3 years” (4-27-10)

“Home prices in February posted their first annual increase since the end of 2006, pumped up by a temporary tax credits for homebuyers. The Standard & Poor’s/Case-Shiller home price index released Tuesday eked out a 0.6 percent gain, half the increase analysts had expected. And on a more cautionary note, 11 of the 20 cities tracked by the index showed declines from February last year.”

The Press Enterprise – “Fed expected to keep rates at record lows” (4-27-10)

“Confidence is growing that the economic rebound will strengthen. And to make sure it does, the Federal Reserve is considered certain to hold interest rates at record lows when it meets this week. ”

San Francisco Chronicle – “Mortgage fraud incidents rise 7 pct last year” (4-27-10)

“Incidents of residential mortgage fraud increased last year, a sign that scammers are still targeting the industry despite more diligent efforts to find and report such activity. The number of mortgage fraud reports among loans made in 2009 grew 7 percent, a smaller increase than the 26 percent jump seen the previous year, according to a study released Monday by the LexisNexis Mortgage Asset Research Institute.”

Housing Wire – “State HFAs Submit Proposals to Spend $1.5bn Hardest Hit Fund” (4-27-10)

“Three of the five state Housing Finance Agencies (HFAs) receiving $1.5bn from the Treasury Department through the Hardest Hit Fund released proposals on how they would spend the money. In March, the Treasury cleared the HFAs of states where house prices dropped 20% from the peak to submit proposals to use the funds from the Troubled Asset Relief Program (TARP).”

Housing Wire – “FHFA Sees Interest Rates Dip, Hover Around 5% in March” (4-27-10)

“The average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09%, down from 5.13% one month ago. The average rate for a 15-year FRM of $417,000 or less was 4.57%, down from 4.65%. The FHFA measured interest rates on loans that closed between March 25 and 31. Since the rate is typically determined 30 to 45 days prior to closing, the report depicts market conditions prevailing in mid- to late-February, the FHFA said.”

Housing Wire – “Fannie Extends REO Discount Deadline” (4-27-10)

“Fannie Mae (FNM: 1.21 -3.20%) extended its seller assistance incentive on all of its HomePath properties this week. In February, Fannie began providing a 3.5% discount to buyers of its REO properties listed as part of its HomePath division. The discount can be used for closing cost assistance or the buyer’s choice of appliances.”

Housing Wire – “Goldman’s Tourre Denies Misleading Investors in Subprime RMBS CDO” (4-27-10)

“An executive at embattled Goldman Sachs (GS: 153.04 +0.66%) denied before a Senate panel today that he misled investors in a synthetic collateralized debt obligation (CDO) tied to the performance of subprime residential mortgage-backed securities (RMBS). The Securities and Exchange Commission (SEC) is charging investment bank Goldman and the executive director of its structured products group trading, Fabrice Tourre, for allegedly making misleading statements about the CDO transaction, ABACUS 2007-AC1.”

Bloomberg - “‘Tourists’ May Leave Real Estate as Rates Rise, Sternlicht Says” (4-27-10)

“If interest rates head higher, ‘you will see a pause that will take a lot of capital out,’ he said. Corporate bonds may benefit, according to Sternlicht. A rebound in the real estate market is being hampered by weak demand and commercial-mortgage-backed financing that declined 95 percent last year from its record level in 2007. Vacancies in the first quarter rose to the highest level since at least 2000 at the nation’s biggest malls, and climbed to a 16-year peak at office buildings, research firm Reis Inc. said earlier this month. “

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The Norris Group Real Estate News Roundup 4/8/10

Thursday, April 8th, 2010

Today’s News Synopsis:

John Husing estimates that 10,500 new jobs will be created in Riverside during 2010. First American CoreLogic reports distressed sales accounted for 29 percent of the U.S. market. According to the Clear Capital Home Price Index, US home prices dipped 3.9% in the first quarter of 2010. The current rate for 30-year FRM loans is at 5.21%.

In The News:

The Press Enterprise – “Inland economy to improve in 2010: forecast” (4-7-10)

“Inland Southern California will start regaining some of the jobs it lost in the last two years, the area’s leading economist told a gathering of business leaders Wednesday. John Husing, whose forecast each spring is considered one of the clearest snapshots of the region’s economy, said Riverside and San Bernardino county residents will see about 10,500 new jobs created in 2010. If it happens, it would be the first annual growth for the area’s job base in three years.”

Housing Wire – “Distressed Sales Reach 29% of Entire Market: First American” (4-8-10)

“Distressed sales, including short sales and real estate owned (REO) transactions, accounted for 29% of the entire US market in January, according to First American CoreLogic. It’s the highest level since April 2009 and close to the February number calculated by Clear Capital, another analytics firm, which released a report showing how those transactions are pressing home prices down. Distressed sales took the largest chunk of the market in January 2009 when 32% of sales fell into that category, according to First American.”

Housing Wire – “REO Sales Push Home Prices Down 3.9% in March: Clear Capital” (4-8-10)

“After nine months of quarterly gains, US home prices dipped 3.9% from January to March as real-estate owned (REO) property takes more of the market, according to the Clear Capital Home Price Index. Home prices did grow 5.1% from last year, a sign that increases are flattening. In February, prices grew 5% on a yearly basis as well. All four US regions reported positive yearly gains for the first time since spring 2006. However, when Clear Capital analysts drilled down to the quarterly scale, they found renewed declines in regional prices.”

Housing Wire – “Freddie Mac Mortgage Rates Continue Climb for Fourth Week” (4-8-10)

“The Freddie Mac (FRE: 1.34 0.00%) weekly survey put the average interest rate for a 30-year fixed-rate mortgage (FRM) at 5.21% with an average 0.6 point for the week ending April 8, up from the previous week, when the average was 5.08%, and up from the same time last year, when the average rate was 4.87%. It’s the highest average rate for 30-year FRM since August 13, 2009, when it averaged 5.29%. It is the fourth week Freddie’s rates have inched upward.”

Orange County Register - “Homebuilder’s future in doubt?” (4-8-10)

“California Coastal Communities filed for Chapter 11 bankruptcy in October to gain more time to repay $182 million in debt due this spring. That debt grew to $204 million by the end of 2009, according an annual report the company filed with the Securities and Exchange Commission on March 30.”

Inman - “ZipRealty: Data shows rising median price” (4-8-10)

“A monthly review of multiple listing service data in 26 market areas found that the median price of for-sale homes rose 1.07 percent in March, to $263,753, according to real estate brokerage company ZipRealty. Prices have been reduced on 40.35 percent of homes that were for sale in March, which is down slightly from February. And the median price reduction on for-sale homes fell 3.02 percent in March, to $20,200.”

Realty Times – “Top 10 Home Buying Mistakes” (4-8-10)

“Going solo Buying a house is a complex transaction. It should be a team effort. You’ll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build before you start the search. Love at first sight If you believe in fairy tales you probably shouldn’t be buying a home. You won’t live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.”

Realty Times – “Nonresidential Construction Industry Continues to Struggle” (4-8-10)

“Associated Builders and Contractors (ABC) reports that its Construction Backlog Indicator (CBI) sharply declined by 9 percent between November 2009 and January 2010. CBI has slipped 16.3 percent during the last year and currently stands at 5.5 months, the lowest point reported in the 15 months ABC has gathered data. CBI is a forward-looking indicator that measures the amount of construction work under contract to be completed in the future.”

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The Norris Group Real Estate News Roundup 3/26/10

Friday, March 26th, 2010

Today’s News Synopsis:

The Obama administration announced a new program for homeowners in foreclosure. The Fed bought a total $8.26bn of MBS from Fannie Mae, Freddie Mac, and Ginnie Mae. Freddie Mac reports the 30-year FRM rate increased to 4.99 percent this week.

In The News:

New York Times – “Under Pressure on Foreclosures, White House Pledges Aid” (3-26-10)

“The Obama administration on Friday announced broad new initiatives to help troubled homeowners, potentially refinancing millions of them into fresh government-backed mortgages with lower payments. Another element of the program is meant to temporarily reduce the payments of borrowers who are unemployed. Additionally, the government will encourage lenders to write down the value of loans held by borrowers in modification programs to make their mortgages more affordable.”

Housing Wire - “The Commercial Real Estate Pretend and Extend Strategy Continues” (3-26-10)

“In a speech on the Federal Reserve exit strategy to the House of Representatives Committee on Financial Services, chairman Ben Bernanke noted that the government-led credit provision, the Term Asset-Backed Securities Loan Facility (TALF) is reaching its end this month. The exception to this deadline, however is newly issued commercial mortgage-backed securities (CMBS), and loans backed by newly issued CMBS. These will get an extra three months.”

Housing Wire – “FHA Mortgage Workout Lacks Incentives and Creates Problems: Industry Sources” (3-26-10)

“Under the terms of the voluntary program, lenders will be required to write down at least 10% of the mortgage principal for borrowers who are current on their payments. The program is open to borrowers whose mortgage isn’t currently insured by the FHA. The principal reduction must bring the new FHA loan to value (LTV) to 97.75% and make the new payments account for 31% of the borrower’s monthly income. The program also offers incentives to lenders who offer borrowers with second lien mortgages similar principal reduction and refinance options. The maximum allowed LTV of the combined loans is 115%.”

Housing Wire – “Fed MBS Purchases 99.5% Complete With Another $8bn” (3-26-10)

“The Fed bought a total $8.26bn of MBS this week — $3.6bn of Freddie Mac (FRE: 1.32 +2.33%) MBS, $4.1bn of Fannie Mae (FNM: 1.06 0.00%) MBS and $560m of Ginnie Mae MBS. The Fed also reported $260m of MBS sales in the same week, bringing net purchases to $8bn.”

Bloomberg - “Greenspan Takes Issue With Yellen on Fed’s Role in House Bubble” (3-26-10)

“Alan Greenspan disputed suggestions by his former central bank colleague and current San Francisco Federal Reserve Bank President Janet Yellen that the Fed could have headed off the housing bubble by raising interest rates.”

Bloomberg - “What happens when Fed pulls the plug” (3-26-10)

“In an odd leap, long-term Treasury yields blew up, and Wednesday was the worst single day in nine months. The 10-year Treasury note stopped at 3.88 percent, a level touched for the fifth time since last June, but the violence of this move threatens upward breakout. Meanwhile, mortgages held fairly well, inside the 5.25 percent top that has held since August. The peculiar part: Big sell-offs like this are driven by good economic news, but that’s not what we got. February sales of new and existing homes fell (new ones at the lowest pace since stats began in 1963, 303,000 annualized), and unsold inventory rose.”

Orange County Register – “How to avoid a bad contractor” (3-26-10)

“Unlicensed contractors can underbid their licensed counterparts because they often don’t pay worker’s compensation. That, according to the board, means homeowners could be liable if there is an accident. There are also fewer options for homeowners who get stuck with shoddy work.”

Realty Times – “Mortgage Rates Inch up Following Bond Yields” (3-26-10)

“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 4.99 percent with an average 0.6 point for the week ending March 25, 2010, up slightly from last week when it averaged 4.96 percent. Last year at this time, the 30-year FRM averaged 4.85 percent.”

Looking Back:

One year ago, the 30-year FRM rate was at 4.85 percent. The number of pulled housing permits decreased by 50 percent from 2008 to 2009. The U.S. economy shrank 6.3 percent during the 4th quarter of 2008.

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The Norris Group Real Estate News Roundup 3/25/10

Thursday, March 25th, 2010

Today’s News Synopsis:

New rules for the HAMP program may require servicers to screen borrowers for modification after only 31 days of delinquency. ForeclosureListings.com shows that California experienced an 11.9% increase in foreclosures. Freddie Mac reports the 30-year FRM rate is currently at 4.99 percent. According to the Comptroller of the Currency,  the re-default rate for modified loans is over 50 percent.

In The News:

Los Angeles Times – “Bank of America to reduce mortgage principal for some borrowers” (3-25-10)

“Amid increasing government pressure to stem foreclosures, Bank of America Corp. said Wednesday that it would offer to erase as much as $3 billion in principal owed by thousands of severely delinquent borrowers who owe more than their homes are worth.”

Mercury News – “Citigroup agrees to modify some second mortgages” (3-25-10)

“Citigroup on Thursday became the latest lender to commit to the government’s program to modify second mortgages as a recovery in the housing market appears to be in jeopardy. With Citi on board, now four big owners of home mortgages in the U.S. have joined the program — part of the Obama administration’s $75 billion loan modification plan aimed at reducing monthly payments to help customers stay in their homes. Bank of America, Wells Fargo and JPMorgan Chase already participate.”

Inman - “Home values rise in Boston, San Diego” (3-25-10)

“Radar Logic’s monthly RPX report, based on 28 days of price-per-square-foot data, found that the price per square foot rose most in Boston (up 15.5 percent, to $187.84 per square foot) year-over-year in January, and dropped most in Las Vegas (down 21.4 percent, to $76.18 per square foot) during that period.”

Housing Wire - “Treasury to Require HAMP Servicers to Step Up Outreach Efforts” (3-25-10)

“Allison announced that servicers must pursue early intervention, pre-screening every borrower that misses two or more payments to determine eligibility for HAMP and soliciting those qualifying borrowers for HAMP participation. This change encourages servicers to reach out to the borrower as early as 31 days of delinquency when the chance for homeownership retention is best, according to a supplemental directive on the changes provided to HousingWire.”

Housing Wire – “ForeclosureListings: Texas Leads Nation in Foreclosure Gains” (3-25-10)

“The 35% increase of Texas foreclosures in February was the highest monthly gain of any state in the country, according to data from ForeclosureListings.com, an online foreclosure marketplace. Michigan had the second highest increase at 17.5%, followed by California at 11.9% and Florida at 4.7%.”

Housing Wire – “Mortgage Rates Increase as Fed MBS Purchase Program Nears End” (3-25-10)

“Freddie Mac (FRE: 1.29 +0.78%) said the average rate for a 30-year fixed-rate mortgage (FRM) was 4.99% with an average 0.6 origination point for the week ending March 25, up from last week’s average of 4.96%. A year ago, the rate average was 4.85%. The Bankrate.com survey of large banks and thrifts put the average rate for a 30-year FRM at 5.11% with an average 0.41 origination point, up from last week’s average of 5.07%, but down from last year’s average of 5.19%.”

Bloomberg - “Half of U.S. Home Loan Modifications Default Again” (3-25-10)

“More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report. The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months.”

Bloomberg - “Prepare to Pay 15% Less for New U.S. Homes: Chart of the Day” (3-25-10)

“New-home prices may have to tumble 15 percent in the U.S. before sales start to rebound, according to Michael Panzner, an author and financial blogger. ”

Looking Back:

One year ago, The MBA reported a 32 percent increase in mortgage applications from the previous season. One in five homeowners owed more on their mortgage than their house was worth. The Federal Reserve began purchasing long-term treasuries. New home sales in the U.S. increased by 4.7 percent within a month.

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The Norris Group Real Estate News Roundup 3/4/10

Thursday, March 4th, 2010

Today’s News Synopsis:

Bruce Norris claims that the government’s aid will not be enough to prevent the U.S. economy from sliding back into recession. The NAR reports that national pending home sales decreased by 7.6 percent in January. According to Trepp, commercial real estate delinquencies decreased in February. The delinquency rate for Fannie Mae loans increased to 5.38% last month.

In The News:

Orange County Register – “Hear why housing will slump again” (3-4-10)

“Norris tells ocregister.com in a podcast interview that he believes that all the government aid that’s going to the housing market won’t be enough to keep real estate — and the entire economy — from sliding back into a second wave of recessionary conditions.”

NAR - “Pending Home Sales Down; Severe Weather Impacting Market” (3-4-10)

“The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in January, fell 7.6 percent to 90.4 from an upwardly revised 97.8 in December, but remains 12.3 percent higher than January 2009 when it was 80.5.”

CBIA - “Metro Regions” (3-4-10)

“Curious about housing numbers for a particular area of the state? This is the place to find all the numbers for an individual area.”

Recordnet.com – “Region’s future bright, experts say” (3-4-10)

“San Joaquin County, as well as the entire San Joaquin Valley, holds tremendous potential for growth even as it struggles to emerge from the recession, a panel of development experts, business and government leaders said Wednesday. The county could see gains of more than 30,000 new jobs in the next three years, paying wages and benefits of $1.5 billion.”

Housing Wire – “Valeo Fund Targets $1trn in Maturing Commercial Mortgages” (3-4-10)

“The private equity firm Valeo Fund is recruiting investors to go after $1trn of commercial mortgages set to mature between 2010 and 2013. The move comes as opportunities are begin to hit the entire commercial market, which has been bracing for struggles.”

Housing Wire – “Commercial Mortgages Showing Signs of a Brighter Road Ahead” (3-4-10)

“The blistering climb of commercial real estate delinquency rates, which crossed the 6% threshold in December, started to slow in February, according to the analytics firm Trepp, which monitors collateral performance on related commercial mortgage backed securities (CMBS). The amount of commercial loans at least 30-days delinquent grew 23 basis points (bps) to 6.72% in February, the smallest increase in six months.”

Housing Wire – “General Growth Gets Extension for Reorganization, Plans NYSE Re-listing” (3-4-10)

“A bankruptcy judge granted mall real estate investment trust (REIT) General Growth Properties (GGP: 1.05 0.00%) a nearly five-month extension period to file a plan of reorganization for the company to exit bankruptcy.”

Housing Wire – “Fannie Single-Family Mortgage Delinquencies Grow to 5.38%” (3-4-10)

“The serious delinquency rate at government-sponsored enterprise (GSE) Fannie Mae (FNM: 1.005 +2.11%) rose nine basis points (bps) to 5.38% in the single-family mortgage book. Its a slight increase from 5.29% last month.”

Housing Wire – “Freddie Says Mortgage Rates Dip Below 5%” (3-4-10)

“Freddie Mac said the average interest for a 30-year fixed-rate mortgage was 4.97% with a 0.7 origination point for the week ending March 4, down from 5.05% one week ago. Last year at this time, the 30-year FRM averaged 5.15%.”

Housing Wire – “Home Prices Continue Climb from 2009 Levels: Clear Capital” (3-4-10)

“US home prices climbed 5% in February from a year ago, despite an incoming wave of REOs that could saddle the market for another three years, according to the Clear Capital Home Data Index. Prices grew on a yearly basis for the first two months of 2010. The 5% uptick in February bested the 2.3% yearly increase in January. However, prices remained unchanged on a rolling quarterly basis.”

Looking Back:

One year ago, the MBA reported that mortgage applications decreased by 12.6 percent within one week. Statistics from First American CoreLogic showed that 20 percent of mortgages were underwater. Radar Logic claimed that foreclosures increased home sales by approximately 7 percent during 2008. Federally regulated banks filed 62,084 reports of suspected mortgage fraud during the mid-summer of 2008.

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