Today’s News Synopsis:
According to the MBA, the level of commercial/multifamily mortgage debt outstanding decreased to $3.31 trillion in the first quarter. The NAR reports existing home sales decreased by 2.2 percent last month. California home sales increased 1.2 percent last month. An amendment to the Wall Street Reform Bill being debated today in Congress would eliminate the hotly contested Home Valuation Code of Conduct.
In The News:
Mortgage Bankers Association – “MBA Analysis: Commercial and Multifamily Mortgage Debt Outstanding Declined 0.9 Percent in First Quarter 2010″ (6-22-10)
“The level of commercial/multifamily mortgage debt outstanding decreased in the first quarter, to $3.31 trillion, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data. Declines were driven by drops in commercial and multifamily mortgages held in CMBS and construction loans held by banks and thrifts. The $3.31 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $31 billion or 0.9 percent from the fourth quarter of 2009. Multifamily mortgage debt outstanding rose to $852 billion, an increase of $3 billion or 0.4 percent from the fourth quarter of 2009.”
NAR - “May Shows a Continued Strong Pace for Existing-Home Sales” (6-22-10)
“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.”
California Builder – “Market Your Way Out of Tough Times” (6-22-10)
“Many businesses think ‘keeping your name in front of the public’ is a valid advertising strategy. It’s questionable at best, but it’s way too risky and low-yield in tough times. Instead, make sure your advertising is only in publications that reach your best prospects, and – this is the most important part – make a specific offer and call to action to get readers of the ad to call you.”
CAR - “May sales and price report” (6-22-10)
“Home sales increased 1.2 percent in May in California compared with the same period a year ago, while the median price of an existing home rose 23.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”
Sacramento Bee – “California personal income grows in quarter” (6-22-10)
“Personal income in California grew $14 billion to $1.57 trillion in the first quarter compared with the last quarter of 2009, according to statistics released Friday by the U.S. Bureau of Economic Analysis. The 0.9 percent gain matched personal income growth for the United States, but California ranked 27th among all states.”
Inman - “Social networking sites gobble more traffic” (6-22-10)
“Social networking sites and websites hosting forums grew their market share by nearly 62 percent during the year ending in May — the largest gain among any real estate-related category, according to a new quarterly report from online metrics firm Hitwise. Visits to websites in the real estate category during May were down 24.3 percent from a year ago — the 12th consecutive month of year-over-year traffic declines dating to June 2009, the report said.”
Inman - “California may restrict lender claims over refis” (6-22-10)
“SB 1178, which passed the state Senate in a 30-4 vote on June 3, would extend protection from deficiency judgments to homeowners who have refinanced, but only up to the amount of their original loan. In other words, if the original mortgage was $300,000, and the homeowner refinanced and defaulted on a $350,000 loan, they would not be liable to repay the first $300,000.”
Housing Wire – “House Members Look to Eliminate HVCC, Change Appraisal Process” (6-22-10)
“An amendment to the Wall Street Reform Bill being debated today in Congress would eliminate the hotly contested Home Valuation Code of Conduct (HVCC), which has changed much of the home appraisal process since its introduction last year. The Federal Housing Finance Agency (FHFA) implemented HVCC in May 2009 in an attempt to improve the independence of appraisers by prohibiting lenders and third parties from influencing appraisals. It also limits the interactions between the appraisers and those originating the loan.”
Housing Wire – “Fannie and Freddie Servicers Refinance 53% More Loans in Q110: FHFA” (6-22-10)
“Mortgage servicers refinanced 53% more Fannie Mae Mae and Freddie Mac loans under the Home Affordable Refinance Program (HARP) in Q110 than in the previous quarter, according to the Federal Housing Finance Agency (FHFA). Delinquencies are improving as well in the Fannie and Freddie portfolios. According to the FHFA, the amount of loans behind by 60 or more days declined for the first time in two years, dropping by more than 23,000 to roughly 1.7m in Q110.”
Housing Wire – “Real Estate Owned Inventory to Peak in Summer 2011: BarCap” (6-22-10)
“The amount of REO inventory held by lenders is expected to peak in August 2011 at 545,000 properties, according to analysts at Barclays Capital. In April, REO remained relatively flat, increasing 0.8% from March to 526,000. The influx was primarily due to an increase in REO from the government-sponsored enterprises (GSEs), according to BarCap.”
Looking Back:
One year ago, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70% of the units have been sold. The Mortgage Bankers Association lowered its forecast of mortgage originations for 2009 to $2.03 trillion. Many lawmakers and businesses were calling for an extension of the $8,000 tax credit.\
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.