In a big news story, Freddie Mac reported 30-year mortgage rates are still at a low 4%, even after five weeks.  Housing wire reported the number of people claiming unemployment has risen to 402,000.  Despite this, CNN Money reported more young people are being hired.  According to Bloomberg, spending on housing construction increased in October for the third month straight.

In The News:

Housing Wire - “Average time to foreclose sets new record of 631 days” (12-1-11)

“Mortgage delinquencies continued their decline in October and are nearly 30% off their January 2010 peak, but foreclosure inventories and the foreclosure process reached all-time highs during the month, according to Lender Processing
Services (LPS: 18.93 -0.16%).”

Los Angeles Times - “Freddie Mac: Mortgage rates stuck in low at 4%” (12-1-11)

“The mortgage engine seems stuck in low.  For five straight weeks, Freddie Mac’s survey of the rates offered by home lenders has averaged at or below 4% for 30-year loans.”

CNN Money - “Young workers getting hired again” (12-1-11)

“Young workers are landing jobs again.  Some 650,000 workers aged 16 to 24 found employment in the past three months, the biggest spike for that age group since the recession began, according to Labor Department statistics.”

Housing Wire - “Jobless claims edge up to 402,000″ (12-1-11)

“Jobless claims for the week ending Nov. 26 edged up as 402,000 new unemployment filings came in, an increase of 6,000 from the previous week.”

Bloomberg - “Construction Spending in U.S. Rose for Third Consecutive Month in October” (12-1-11)

“Construction spending in the U.S. rose in October for a third consecutive month on gains in housing and commercial projects like office buildings and power plants.”

Housing Wire – “FHFA begins development of new REO pilot programs” (12-1-11)

“The Federal Housing Finance Agency said it has begun to develop new pilot programs to more efficiently unload foreclosed homes held by Fannie Mae and Freddie Mac.”

Bloomberg - “BofA Joins Foreign Investors Fueling Record Ginnie-Fannie Gap in Bonds” (12-1-11)

“Home-loan securities guaranteed by Ginnie Mae are trading at about record premiums over Fannie Mae (FNMA) bonds as foreign investors target debt with the strongest backing from the U.S. and lenders including Bank of America Corp. seek notes considered the least risky by regulators.”

Bloomberg - “JPMorgan, BofA Sued By Mass. Over Foreclosures” (12-1-11)

“JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC) and Citigroup Inc. (C) were among five banks sued by Massachusetts for “unlawful and deceptive conduct” in foreclosures, according to the state’s attorney general.”

Inman - “Two MLSs hit with civil suits after FTC actions” (12-1-11)

“Two multiple listing services in Michigan and Pennsylvania that  federal regulators had accused of  anti-competitive practices have also  become entangled in civil lawsuits seeking  millions of dollars in  damages on behalf of consumers.”

Looking Back:

Freddie Mac announced it would suspend foreclosure evictions from Dec. 20 to Jan. 3, 2011. Automatic Data Processing reported the U.S. economy added 93,000 private-sector jobs during November 2010. The Federal Reserve shared information about more than 21,000 individual transactions which provided $3 trillion in liquidity for market stabilization. According to the MBA, mortgage applications decreased 16.5% the previous week.

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.

30-Year Mortgage Falls Below 4% for First Time
CoreLogic Records First Drop in Home Prices in Four Months
Remodeling Double-dip Offers Opportunity for Homeowners
Congress Scrutinizes Federal Housing Programs
Private mortgage mods perform worse than HAMP
Homeownership rate experiences biggest drop in 70 years
BofA May Face Fraud Claims for Soured Loans

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big events. The job market showed signs of improvement last month with the addition of 103,000 net jobs.  Apartment vacancies are at the lowest they have been in five years, enabling landlords to raise rents on the apartments.  For the fourth week in a row now mortgage rates are at an all-time low according to the Realty Times.

In The News:

MSNBC.com - “Nation’s labor market perked up in September” (10-7-11)

“The nation’s labor market perked up last month, according to the government’s latest jobs report.  U.S. employers added 103,000 net jobs in September, the government said Friday — that’s better than economists had expected, but barely enough to keep up with population growth. The nation’s unemployment rate held steady at 9.1 percent”

Housing Wire - “GSE mortgage prepayments surge in September” (10-7-11)

“Prepayments, mostly through refinancing, on mortgages backing Fannie Mae and Freddie Mac securities increased substantially
in September, higher than what some analysts expected.”

DS News - “Two CA Investors Plead Guilty to Bid Rigging” (10-7-11)

“Two real estate investors are pleading guilty to mail fraud and bid rigging at public foreclosure auctions in Northern California, according to the Department of Justice.”

Realty Times - “Mortgage Rates Fall, Housing Opportunities Getting Better” (10-7-11)

“For four weeks in a row, mortgage rates are seeing historic lows. The 30-year fixed average interest rate fell from 4.09% to 4.01% in the end of September. This marks the lowest rate since 1951.”

O.C. Register - “Where will mortgage rates head next?” (10-7-11)

“In October 1981, the average U.S. interest rate on the traditional, 30-year fixed-rate loan was 18.6%.  This past week, it fell below 4% for the first time in history, according to Freddie Mac.”

Inman – “New Zillow service allows agents to advertise real estate discounts, deals” (10-7-11)

“Online real estate portal Zillow has launched a new service, Zillow  Special Offers, that allows agents to promote incentives for working with  them in a home-sale transaction.”

Housing Wire - “NY Fed opens Operation Twist with $3.95 billion in agency MBS buys” (10-7-11)

“The Federal Reserve Bank of New York began its latest effort to stimulate the economy and force borrowing rates even lower this week with $3.95 billion in mortgage-backed securities guaranteed by the government.”

Rismedia - “Better Homes and Gardens Real Estate Expands Internationally” (10-7-11)

“Better Homes and Gardens Real Estate LLC, a subsidiary of Realogy Corporation, recently announced that it has entered its first international market with the signing of a 25-year-long master franchising agreement for the development of the Better Homes and Gardens Real Estate brand in Canada.”

San Francisco Chronicle - “Apartment rents rise as vacancies fall” (10-7-11)

“U.S. apartment vacancies fell to a five-year low in the third quarter, enabling landlords to increase rents even as tepid job growth slowed leasing in what is usually a strong season for demand, Reis Inc. said.”

Looking Back:

Former Governor Schwarzenegger signed a bill protecting homeowners, with lender approval, from deficiency judgments. 30-year mortgage rates dropped to 4.27%, said Freddie Mac. President Obama refused to sign the Interstate Recognition of Notarizations Act, which would have allowed federal and state courts to recognize notary signatures from other states. Realtytrac users were expected to soon be able to view sales prices, sale dates, and other sorts of information on foreclosure sales.

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

According to the Census Bureau, home sales rose 7.3% in April. NAR expects the national economy to add 1.5 million and 2 million jobs annually both this year and in 2012. Borrowers who default on mortgages are less likely to develop long-term poor credit in comparison to those who default on credit cards and auto loans. Ginnie Mae guaranteed over $26.4 billion in mbs during April.

In The News:

Orange County Register – “Census: Texas top site for Calif. movers” (5-24-11)

“Overall, California in 2009 — by Census math — lost 546,589 residents in 2009 to other states. On the flip side, Census found 460,161 new Californians from other states. Thus, by our calculations, California suffered a net loss of 86,428 folks to other states in 2009.”

San Francisco Chronicle – “Troubled banks made up about 12 pct of total in Q1″ (5-24-11)

“The number of banks at risk of failing made up nearly 12 percent of all federally insured banks in the first three months of 2011, the highest level in 18 years.”

CNN - “New-home sales up for 2nd straight month” (5-24-11)

“The Census Bureau reported an annual sales rate of 323,000 new homes last month. That was up 7.3% from a revised rate of 301,000 in March. Economists had forecast a sales rate of 300,000, according to consensus estimates from Briefing.com.”

NAR - “Commercial Real Estate Markets Stabilizing, Demand Growing” (5-24-11)

“Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8.0 percent by the end of next year”

Housing Wire - “Mortgage defaults do not predict poor credit behavior: TransUnion” (5-24-11)

“Troubled borrowers who default on their mortgages are less likely to develop long-term poor credit behavior, when compared to those who default on other kinds of loans, according to a new study from TransUnion. Consumers who default on other bills and lines of credit, such as credit cards and auto loans, are more likely to miss payments in the future.”

Housing Wire – “Bank earnings rose again in 1Q, FDIC problem list highest since 1993″ (5-24-11)

“The FDIC said banks it insures earned $29 billion in the first three months of 2011, up 66.5% from $17.4 billion a year earlier and at the highest level since the second quarter of 2007.”

Housing Wire – “Ginnie Mae MBS issuance tops $26 billion in April” (5-24-11)

“Ginnie Mae guaranteed more than $26.4 billion in mortgage-backed securities in April. That’s up from $24.1 billion in guarantees for March and similar to the February numbers of $26.2 billion.”

Looking Back:

One year ago, 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.

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

Sources:
Underwater mortgages rise as home prices fall
Foreclosure activity slows sharply in February
FHA Powers What’s Left of the Home Market
U.S. Budget Deficit Expanded to Monthly Record $222.5 Billion in February
NAHB Study: New Homes in 2015 will be Smaller, Greener and More Casual
Bank regulators push for principal write-downs
Proposed Servicer Settlement Met With Resistance
Obama threatens to veto bills killing foreclosure programs
House votes to end FHA Short Refi

Today’s News Synopsis:

The U.S. House voted 242-177 to cancel the Emergency Homeowner Loan Program. A new law will allow you to get your entire deduction in one year. Inman composed a list of ten real estate markets they believe will outperform others. Ginnie Mae guaranteed over $26.2 billion in mortgage-backed securities during February.

In The News:

Bloomberg - “U.S. House Votes to Cancel Emergency Homeowner Loan Program for Unemployed” (3-11-11)

“The U.S. House voted 242-177 to cancel a loan program for homeowners who have lost their jobs as Republicans move to eliminate funding for President Barack Obama’s anti-foreclosure efforts.”

Inman - “Don’t wait to deduct real estate equipment cost” (3-11-11)

“Section 179 doesn’t increase the total amount you can deduct, but it allows you to get your entire deduction in one year, rather than taking it a little at a time over the term of an asset’s useful life.”

Housing Wire – “S&P: CMBS loans originated in 2007 pose high potenial for losses” (3-11-11)

“The rating agency concluded the “loss risk level” for CMBS loans originated in 2011 will fall close to 2002 levels because of tighter underwriting conditions at the time of origination. The report estimates cumulative losses of about 2.5% for the 2002 vintage class of CMBS.”

Housing Wire – “Fed’s Dudley sees no reason to turn against QE2″ (3-11-11)

“William Dudley, CEO of the Federal Reserve Bank of New York, believes there’s no reason to back down on expansionary monetary policies already implemented by the Fed. He also told a crowd attending a Queens Chamber of Commerce event Friday that the economy is recovering even as housing sector remains a weak spot.”

Inman - “A futile search for economic answers” (3-11-11)

“The 10-year Treasury note has traded under 3.4 percent resistance, and mortgages are sliding toward 4.75 percent, both tied with four-month lows.”

Inman - “SUMMARY: 10 Real Estate Markets to Watch in 2011″ (3-11-11)

“Inman News examined housing, economic and demographic data for metropolitan areas nationwide in compiling a list of 10 housing markets that are showing signs of strength and may outperform other housing markets in 2011 in several key metrics.”

Housing Wire – “Ginnie Mae guarantees top $26 billion in February” (3-11-11)

“Ginnie Mae guaranteed more than $26.2 billion in mortgage-backed securities in February.”

Housing Wire – “HUD calls ending foreclosure programs ‘irresponsible’” (3-11-11)

“The Emergency Homeowners Loan Program will provide relief to tens of thousands of families who are still struggling to make ends meet after the deepest economic recession and housing crisis in a generation”

Looking Back:

According to the MBA, the delinquency rate for CMBS increased by 1.63 percent during the last half of 2009. Statistics from RealtyTrac show that 2 percent fewer homes entered the foreclosure process in February. Nineteen percent of home listings experienced a price reduction since March 1st.

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.

Tom Wind of J.I. Kislak Mortgage expects refinancing activity to drop by nearly 66% in 2011. Moody’s Investor Service forecasts lower supply and higher demand for rental apartments in 2011. The 50 state attorneys general probing U.S. foreclosure practices will first settle with Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial. Rick Sharga believes foreclosure activity will improve in Orange County during 2011.

In The News:

Bankrate.com – “Zero-down mortgages endure in rural areas” (1-3-11)

“borrowers must demonstrate they can afford the mortgage payments by meeting the USDA debt-to-income ratios of 29 percent for the housing payment and 41 percent for the overall debt to gross monthly income.”

Housing Wire – “J.I. Kislak expects higher purchase loan activity in 2011″ (1-3-11)

“Tom Wind, managing director of J.I. Kislak Mortgage, expects the refinancing activity to fall to $350 billion in 2011 from $1 trillion last year.”

Housing Wire – “Moody’s sees multifamily REIT credit strengthening in 2011″ (1-3-11)

“Moody’s Investors Service expects lower supply and higher demand to stoke growth in rental apartments and subsequently help the credit of multifamily real estate investment trusts.”

Housing Wire – “Ginnie Mae moves up multiple issuer deadline” (1-3-11)

“The cut-off time for issuers submitting multiple loan packages into real estate mortgage investment conduits (REMICs) was three days before the end of the month. Ginnie is now moving that up to six days before the end of the month.”

Bloomberg - “BofA Resolves Fannie Mae, Freddie Mac Loan Dispute” (1-3-11)

“Bank of America Corp., the biggest U.S. lender by assets, paid $2.8 billion to Freddie Mac and Fannie Mae after the U.S.-owned firms demanded the company buy back mortgages they said were based on faulty data.”

Bloomberg - “Foreclosure Deals to Start With Big Lenders, Iowa Says” (1-3-11)

“The 50 state attorneys general probing U.S. foreclosure practices will first settle with the five largest loan servicers, including Bank of America Corp. and JPMorgan Chase & Co., Iowa Attorney General Tom Miller said. No settlements have been reached yet, Miller said in a telephone interview today. The other three are Citigroup Inc., Wells Fargo & Co. and Ally Financial Inc., said Miller, the leader of the 50-state investigation. The five have 59 percent of the market, Miller said.”

Orange County Register – “Dip in O.C. foreclosures for 2011?” (1-3-11)

“Orange County foreclosure activity has been trending downward over the course of 2010, and may continue to improve marginally over the course of 2011. There are a number of reasons for this, including an unemployment rate that is better than elsewhere in the state, and the fact that Orange County doesn’t have as much excess housing inventory as other areas in California.”

Orange County Register – “No end to high-end foreclosures eyed for ’11″ (1-3-11)

“A recent study by the State Foreclosure Prevention Working Group found that nearly 3 years into the mortgage crisis, more than 60% of homeowners with seriously delinquent loans are still not involved in any loss mitigation/loan modification activity.”

For m ore 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.

6,111 new and resale houses and condos were sold in the Bay Area last month, according to MDA DataQuick. Freddie Mac reports the 30-year mortgage rate has rose again to 4.83%. Statistics from CoreLogic show home prices declined 3.93% in October from July. Three members of congress introduced a bill which may put an end to the use of MERS by GSEs.

In The News:

DQNews - “Bay Area November Home Sales, Median Price Down from a Year Ago” (12-16-10)

“A total of 6,111 new and resale houses and condos were sold in the nine-county Bay Area last month. That was down 0.2 percent from 6,122 in October and down 11.2 percent from 6,878 in November 2009, according to MDA DataQuick of San Diego.”

NAHB - “Housing Starts Rise 3.9 Percent in November” (12-16-10)

“Nationwide housing starts rose 3.9 percent in November to a seasonally adjusted annual rate of 555,000 units from an upwardly revised number in the previous month, according to newly released data from the U.S. Commerce Department. This marked the first upward movement in new-home production since August, and was entirely attributable to a nearly 7 percent gain in single-family home building.”

Housing Wire – “Government guarantee expected for one-third of MBS in 2011″ (12-15-10)

“Government-backed bond issuer Ginnie Mae’s share of mortgage-backed securities issuance should reach 32% in 2011, continuing a steady growth seen after the financial crisis of 2008, Deutsche Bank analysts said.”

Housing Wire – “Jobless claims down slightly to 420,000″ (12-16-10)

“The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Dec. 11 fell by 3,000 from the previous week’s upwardly revised figure of 423,000.”

Housing Wire – “Freddie Mac: mortgage interest rates rose again last week” (12-16-10)

“The government-sponsored enterprise said its primary mortgage market survey showed the average rate for a 30-year, fixed mortgage rose to 4.83% for the week ending Thursday from 4.61% a week earlier. The rate is now at the highest level since May. The average rate for a 15-year, fixed mortgage increased to 4.17% from 3.96% the prior week, according to the Freddie Mac survey.”

Housing Wire – “Home prices down for third straight month: CoreLogic” (12-16-10)

“Home prices declined 3.93% in October from the previous three months, the third straight report of declines as any hope for a recovery in early 2011 begins to fade, according to data from CoreLogic (CLGX: 18.26 +1.00%).”

Housing Wire – “Bill aims to end GSE affiliation with MERS” (12-16-10)

“Three congressional representatives recently introduced a bill into the House that would gradually phase out the use of Mortgage Electronic Registration Systems, commonly called MERs, within the government-sponsored enterprises as well as Ginnie Mae.”

Housing Wire – “Foreclosure inventories rise as delinquencies drop in November: LPS” (12-16-10)

“Lender Processing Services (LPS: 30.03 -0.23%) said the delinquency rate for loans that are 30 or more days past due, but not in foreclosure was 9.02% in November, down nearly 3% from October and down 15.6% from November 2009.”

Bloomberg - “Builders Probably Began Work on More U.S. Houses Following October Plunge” (12-16-10)

“Housing starts climbed 6 percent to a 550,000 annual rate, according to the median estimate of 76 economists surveyed by Bloomberg News. Work slumped in October to the slowest pace since April 2009’s record low. Building permits, a proxy of future construction, may have also increased.”

Bloomberg - “Banks Push Fed to Curb Borrowers’ Right to Rescind Mortgages” (12-16-10)

“Mortgage firms are pressing the Federal Reserve to curb homeowners’ right to invalidate loans based on flawed documents — a right consumer groups say is one of the few weapons borrowers have to battle unfair lending.”

Bloomberg - “U.S. Foreclosure Filings Drop to Two-Year Low Amid Lender Delays” (12-16-10)

“A total of 262,339 U.S. properties received default or auction notices or were seized in November, down 21 percent from October and 14 percent from a year earlier, RealtyTrac said in a report today. Those were the biggest monthly and annual declines since the Irvine, California-based data company began reports in January 2005. One in every 492 households got a filing.”

Looking Back:

One year ago, the Wall Street Journal reported that people were increasingly willing to abandon mortgage payments for becoming renters. Housing starts climbed almost 9%. The FDIC offered some reprieve from securities accounting rules for the next year. The Bureau of statistics released their real earnings report stating that average hourly earnings fell by .5%.

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.

Mortgage Bankers Association – “MBA Study Shows Mortgage Banker Production Profits Improved with Higher Refinancing Activity in Third Quarter 2010″ (12-14-10)

“Independent mortgage banks and subsidiaries made an average profit of $1,423 on each loan they originated in the third quarter of 2010, up from $917 per loan in the second quarter of 2010, according to the Mortgage Bankers Association (MBA)’s 3rd Quarter 2010 Mortgage Bankers Performance Report released today.”

Mortgage Bankers Association – “Commercial/Multifamily Mortgage Debt Outstanding Down 1.3 Percent on Bank and CMBS Balances in 3Q 2010″ (12-14-10)

“The level of commercial/multifamily mortgage debt outstanding decreased in the third quarter, to $3.2 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data.”

Housing Wire – “Robo-signing hangover slows foreclosures in Western states” (12-14-10)

“Foreclosure sales in Arizona, California, Nevada, Oregon and Washington fell 38.7% in October and November, according to ForeclosureRadar.”

Los Angeles Times – “Survey: Consumers prefer small banks, credit unions” (12-14-10)

“Americans continue to prefer small banks and credit unions to larger institutions, according to an annual survey of satisfaction with financial services. Small banks held steady in this year’s American Customer Satisfaction Index, with a combined rating of 80 out of 100. Major banks scored mainly in the high 60s, with only Wells Fargo & Co. exceeding 70.”

CNN - “Obama’s mortgage mod plan is still lacking” (12-14-10)

“Last April, the Congressional Oversight Panel found the program to be struggling to get off the ground despite having been in action for a year and a half. The latest evaluation of the Home Affordable Modification Program (HAMP) came out Tuesday and the result was — same deal.”

San Francisco Chronicle - “Loss of estate tax leaves hole in state budget” (12-14-10)

“The proposed tax deal in Congress would fail to deliver about $2.7 billion in estate tax revenues California was counting on receiving this fiscal year and next, but some say the state should never have expected those revenues in the first place.”

Housing Wire – “Strategic defaulters opt to continue paying on second liens” (12-14-10)

“Borrowers who strategically default on their first mortgage often continue to pay on home equity lines of credit, according to a new white paper from two authors with the Philadelphia Federal Reserve.”

Housing Wire – “Mortgage fraud suspicious activity reports up 7% in first half of 2010″ (12-14-10)

“Lenders filed 35,135 suspicious activity reports indicating mortgage fraud in the first half of 2010, up 7% from the same period a year ago, according to the Financial Crimes Enforcement Network.”

Housing Wire – “Ginnie Mae earnings up 6% for fiscal year, issuance down” (12-14-10)

“Ginnie Mae earned $541.5 million in its fiscal year of 2010, up 6.2% from the previous year, but issuance dropped for the first time since 2006.”

Housing Wire – “LendingTree survey shows 40% of homeowners took first loan offer” (12-14-10)

“Roughly 40% of current homeowners surveyed by the online lender exchange LendingTree obtained just one mortgage loan quote before purchasing their home. LendingTree and the Harris Interactive surveyed 1,317 homeowners online, and of those 96% said they compare prices when shopping for anything – except mortgages. This, according to LendingTree, explains why only 28% surveyed feel confident they got the best possible deal on their loan.”

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

22.5% of all mortgages were underwater in the 3rd quarter, according to CoreLogic. The FHA extended deadlines for condo projects seeking to renew their mortgage insurance. Altera Real Estate reports demand for O.C. homes decreased by 12%.

In The News:

Associated Press – “Fewer homeowners underwater in the third quarter” (12-13-10)

“About 10.8 million households, or 22.5 percent of all mortgaged homes, were underwater in the July-September quarter, housing data firm CoreLogic said Monday. That’s down from 23 percent, or 11 million households, in the second quarter.”

ZipRealty - “Prices cut on nearly half of for-sale homes” (12-13-10)

“The share of homes for sale that had experienced at least one price reduction in November jumped 24.1 percent compared to the same month last year, according to a monthly review of multiple listing service listings in 26 major markets conducted by national brokerage ZipRealty.”

Housing Wire – “BarCap: Private sector to boost MBS purchases in 2011″ (12-13-10)

“Private investors could buy as much as $365 billion in agency mortgage-backed securities in 2011, taking over the government’s role in the secondary market, according to the analysts at Barclays Capital.”

Housing Wire – “FHA extends deadlines for condos to recertify mortgage insurance” (12-13-10)

“The Federal Housing Administration extended deadlines for condominium projects seeking to renew their mortgage insurance with the federal agency. New guidelines established by the FHA in 2009 require that condo projects be recertified and approved every two years.”

Housing Wire – “Fed expands TILA scope to loans up to $50,000″ (12-13-10)

“Loans or leases written to consumers for up to $50,000 will be subject to protections under the Truth in Lending Act, up from $25,000, according to a new rule announced by the Federal Reserve Monday. The raised exemption threshold will go into effect July 21, the same day the Consumer Financial Protection Bureau is set to launch. Under the Dodd-Frank Act, the Fed was required to set a new threshold for exempt loans in order expand the protections of TILA.”

Housing Wire – “Amherst Securities: Number of modified, reissued Ginnie Mae loans remains high” (12-13-10)

“The level of Ginnie Mae loans modified and reissued in mortgage-backed securities remains high but probably won’t increase in 2011 from this year, according to one MBS broker-dealer.”

Housing Wire – “Monday Morning Cup of Coffee” (12-13-10)

“In a November letter to regulators, Wells said only mortgages with a more than 30% downpayment should be exempt from the risk-retention rule under Dodd-Frank. Under the reform, federal regulators must determine which mortgages an originator should still be on the hook for after being packaged and sold in the secondary market.”

Orange County Register – “Demand for O.C. homes falls 12%” (12-13-10)

“After remaining the same for the better part of a month, demand dropped by 12% (in the past two weeks), or 311 homes, to 2,382 homes. Last year at this time, demand was at 2,646 pending sales, 264 additional homes compared to today. For the remainder of the year and the first few weeks of the New Year, demand will continue to drop. This is cyclically the slowest time of the year for Orange County real estate.”

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.

Resources:
Delinquencies and Loans in Foreclosure Decrease
Southland Home Sales Fall, Prices Flat
CoreLogic: Mortgage fraud up 20% from 2009
Freddie Mac survey shows mortgage rates at highest level since August
Freddie Mac survey shows mortgage rates at highest level since August
Home Buying Gets Tougher as Lenders Restrict FHA Loans
FHA Reserves Fall to Lowest on Record as Agency Boosts Capital
MERS to testify it forecloses only by mortgage servicer request
http://banking.senate.gov/public/index.cfm?FuseAction=Hearings.LiveStream&Hearing_id=df8cb685-c1bf-4eea-941d-cf9d5173873a
Problems in Mortgage Servicing From Modification to Foreclosure
MERS CEO Defends Technology to Senate Committee
The Consequences of Mortgage Irregularities for Financial Stability… in Plain English
CAI Survey: Associations Hit Hard by Housing, Economic Slump
FTC Issues Final Rule to Protect Struggling Homeowners from Mortgage Relief Scams
Fiserv expects another big drop in home prices next year
S&P predicts more home price declines through 2011

Today’s News Synopsis:

October home sales fell 9.8%, according to RE/MAX. The Federal Trade Commission released a new rule banning companies from accepting fees on mortgage mods before a homeowner’s loan servicer deems the services rendered acceptable. The Federal Housing Finance Administration announced that loan limits on jumbo conforming loans will stay the same for the first nine months of 2011. The Treasury reports borrowers aided by HAMP increased to nearly 520,000 last month.

In The News:

Inman - “Median housing value fell 5.8% in 2009″ (11-19-10)

“Median housing value fell 5.8 percent in 2009, to $185,200 from $196,700 in 2008, the U.S. Census Bureau reported, according to data obtained from the American Community Survey (ACS).”

Housing Wire – “Fed chairman disappointed in slow economic recovery” (11-19-10)

“Disappointingly slow. That’s Federal Reserve Chairman Ben Bernanke’s latest assessment of the economic recovery in the U.S. But, he does believe the central bank’s policy changes are helping.”

Housing Wire – “Tightening mortgage tax code limits housing recovery: John Burns” (11-19-10)

“John Burns Real Estate Consulting said in a report Friday that government intervention is hurting the housing market, and the firm is growing more concerned that lawmakers will reduce the cap on mortgage interest rates that qualify for tax deductions ‘significantly.’”

Housing Wire – “Credit Suisse lists mortgage servicers with highest Ginnie Mae delinquencies” (11-19-10)

“Ally Financial’s (GJM: 22.39 +0.40%) GMAC Mortgage holds the highest serious delinquency rate of Ginnie Mae-backed mortgages for any servicer, according to a report from investment bank Credit Suisse.”

Housing Wire – “New FTC rule aimed at mortgage-relief scams” (11-19-10)

“The Federal Trade Commission unveiled a new rule that bans companies from accepting fees for mortgage modifications before a homeowner’s bank or loan servicer deems the services rendered acceptable.”

Housing Wire – “Failed HAMP mod short sales increase through September” (11-19-10)

“Top mortgage servicers have completed 91,827 short sales or deeds-in-lieu of foreclosure on canceled trial or declined modifications through the Home Affordable Modification Program as of September, up 27% from the previous month, according to data from the Treasury Department.”

Bloomberg - “U.S. Homeowners Drop Out of Foreclosure Program Amid Record Defaults” (11-19-10)

“Borrowers aided by the Home Affordable Modification Program grew to nearly 520,000 in October, up 23,750 from a month earlier, the Treasury said in its monthly report. The increase was less than five percent. A total of 36,300 borrowers have dropped out of the plan for failing to make their payments, an increase of 24 percent from a month earlier.”

Housing Wire – “RE/MAX: October home sales slide as seasonal slowdown hits market” (11-19-10)

“October home sales slid 9.8% from September and 30.2% compared to the year-ago period as seasonal slowdowns and the expired homebuyer’s tax credit took their toll, according to the RE/MAX National Housing Report released Friday.”

Housing Wire – “Jumbo loan limits remain the same in 2011″ (11-19-10)

“The loan limits on jumbo conforming loans will remain unchanged for the first nine months of 2011 the Federal Housing Finance Administration said Friday. The agency recently enacted a congressional continuing resolution to maintain the limits.”

Housing Wire - “Failed HAMP mod short sales increase through September” (11-19-10)

“Top mortgage servicers have completed 91,827 short sales or deeds-in-lieu of foreclosure on canceled trial or declined modifications through the Home Affordable Modification Program as of September, up 27% from the previous month, according to data from the Treasury Department.”

Looking Back:

One year ago, an amendment was passed allowing federal regulators to dismantle financial firms considered to be “too big to fail”.  According to PMI Group, new home sales had decreased by 3.6 percent. The NAHB estimated that families earning the national median income could afford 70.1 percent of the new and existing homes sold in Q3 of 2009. First American CoreLogic reported that home prices declined by 9.8 percent in September from the previous year.

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.

16,744 new and resale homes sold in Southern California during October. Builder confidence increased slightly this month, according to the NAHB. Sean O’Toole of ForeclosureRadar believes the foreclosure investigation will only have a brief effect on the market. FHA wrote $319 billion in new insurance in 2010.

In The News:

DQNews – “Southland Home Sales Fall, Prices Flat” (11-16-10)

“A total of 16,744 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 7.4 percent from 18,091 in September, and down 24.3 percent from 22,132 for October 2009, according to MDA DataQuick of San Diego.”

NAHB - “Builder Confidence Improves Slightly in November” (11-16-10)

“Builder confidence in the market for newly built, single-family homes improved slightly in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI rose one notch to 16 from a downwardly revised level of 15 in the previous month.”

Inman - “Realtor.com reclaims No.1 spot” (11-16-10)

“Realtor.com reclaimed the top spot as the most-visited real estate-related website in October, according to the latest report from Web metrics firm Experian Hitwise. The report’s data is based on a sample of 10 million U.S. Internet users.”

CNN - “Foreclosure mess prompts call for stress tests” (11-16-10)

“The Congressional Oversight Panel, created by Congress in 2008 to review the Treasury Department’s response to the financial crisis, issued a 125-page report detailing recent allegations that banks and loan servicers filed thousands of inaccurate documents in foreclosure cases across the country.”

Housing Wire – “ForeclosureRadar: dramatic decline in REO sales in October” (11-16-10)

“While 50 state attorneys general offices and 11 regulators are investigating the matter, Sean O’Toole, CEO of ForeclosureRadar, said the issue will only have a brief effect, and that the real problem will be new scammers cropping up.”

Housing Wire – “FHA 5 years away from 2% reserve ratio” (11-16-10)

“The Federal Housing Administration reported today that its capital reserve ratio will return to the 2% level mandated by Congress in 2015.”

Housing Wire – “Moody’s sees minimal risk to RMBS from robo signing, MERS litigaton” (11-16-10)

“The risks posed to residential mortgage-backed securities by the robo-signing debacle are extremely low to moderate and should have a limited impact, according to Moody’s Investors Service.”

Housing Wire – “One-third of fund managers see stronger economy in 2011″ (11-16-10)

“Investor strategy is slowly returning to a ‘normal level’ of risk-taking as 35% of fund managers now see the global economy strengthening next year. Only 15% reported the same sentiment last month, according to the latest Bank of America Merrill Lynch Survey of Fund Managers.”

Housing Wire – “Reducing mortgage principal? Count MGIC out” (11-16-10)

“The nation’s leading private mortgage insurer, Mortgage Guaranty Insurance Corp., sent an e-mail out late Monday to mortgage default servicing clients clarifying its policies regarding distressed borrowers.”

Housing Wire – “Ginnie Mae to disclose loss mitigation data on single-family pools” (11-16-10)

“Ginnie Mae will begin issuing reports on how many mortgages have gone through the loss-mitigation process for securitization investors.”

Housing Wire – “FHA mortgage insurance beats private market 25-fold: KBW” (11-16-10)

“The Federal Housing Administration wrote $319 billion in new insurance in 2010, more than 25 times the $12.4 billion in new insurance written by the top five private companies over the last year.”

Housing Wire – “Head of Chase mortgage: Foreclosure always last resort” (11-16-10)

“Foreclosure is always the last resort and least desired option for delinquent mortgages, and JPMorgan Chase uses all possible remedies prior to starting any foreclosure process, according to an executive in the bank’s home loan office. And in most cases, no one is even living in the property any longer.”

Bloomberg - “Bailout Panel Warns of Bank Mortgage Losses, Urges Stress Tests” (11-16-10)

“Regulators should conduct new stress tests on banks because legal challenges to foreclosures and uncertainties in the housing market could threaten the financial system, a congressional watchdog said.”

Bloomberg - “FHA Reserves Fall to Lowest on Record as Agency Boosts Capital” (11-16-10)

“The FHA’s capital-reserve ratio, which measures funds needed to cover projected losses, fell to 0.50 percent in the year ended Sept. 30 from 0.53 percent a year earlier, remaining below the federally mandated 2 percent minimum for a second straight year, the agency said today in a report to Congress.”

Looking Back:

One year ago, the Worker, Homeownership and Business Assistance Act was expected to provide approximately 33 billion dollars in tax cuts to real estate corporations. Statistics from Altera Real Estate showed that the most difficult Orange County market to find a new home in was Ladera Ranch. Foreclosure Radar reported that investors bought 337 homes and condos at foreclosure auctions in October.

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.