California Real Estate Investing News

Posts Tagged ‘Home Affordable Modification Program’

The Norris Group Real Estate News Roundup 8/14/13

Wednesday, August 14th, 2013

Today’s News Synopsis:

According to the Mortgage Bankers Association, mortgage applications declined 4.7% from last week.  Foreclosure starts also decreased with the increase in mortgage modifications.  Two former bankers of JP Morgan Chase have been charged in what is known as the “London Whale” trade for losses brought about by false records and fraud.

In The News:

Mortgage Professional America“Housing affordability sees first fall in five years” (8-14-13)

“National housing affordability fell in the second quarter for the first time in five years, according to a National Association of Home Builders/Wells Fargo report released Tuesday.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (8-14-13)

“Mortgage applications decreased 4.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 9, 2013.”

CNN Money“Ex-JPMorgan bankers charged over London Whale bet” (8-14-13)

“U.S. prosecutors have charged two former JPMorgan Chase bankers with conspiring to conceal more than $500 million in losses related to the bank’s ill-fated “London Whale” trade.”

Housing Wire“Privately held mortgage bankers face challenges” (8-14-13)

“Independent mortgage bankers witnessed an increase in production, profitability and net worth during the second quarter, but commissions still continue to decline.”

DS News“Household, Mortgage Debt Decrease in Q2” (8-14-13)

“Mortgage debt decreased with overall household debt in the second quarter, the Federal Reserve Bank of New York reported Wednesday.”

Inman“Settlement clears the way for Trulia acquisition of Market Leader” (8-14-13)

“Real estate marketing software company Market Leader Inc. has agreed to settle three lawsuits brought on behalf of shareholders seeking to block the company’s acquisition by real estate portal giant Trulia.”

Housing Wire“Mortgage modifications up, foreclosure starts down” (8-14-13)

“From April through June of this year, an estimated 204,000 homeowners received permanent loan modifications from mortgage servicers. Of those modifications, approximately 160,000 homeowners received proprietary loans modifications and 44,860 homeowners received loan modifications completed under the Home Affordable Modification Program.”

DS News“Demand Continues to Cool in July” (8-14-13)

“As summer heads into its dog days, a report from Seattle-based Redfin finds housing demand is still cooling.  According to Redfin’s Real-Time Demand Pulse for August (using July data), the brokerage’s agents continue to report declines in both the number of customers touring homes and the number of signed offers.”

Hard Money Loan Closed

Riverside, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $123,000 on a 3 bedroom, 1 bathroom home appraised for $179,000.


Bruce Norris of The Norris Group will be speaking at SJREI Poised to Pop Thursday, September 5, 2013.

Bruce Norris will be presenting How to Make a Million in 24 Months in San Jose on Saturday, September 7, 2013.

Bruce Norris will be presenting InvestClub for Women Poised to Pop on Tuesday, September 17, 2013.

On Friday, October 18, Bruce Norris will be presenting the 6th annual I Survived Real Estate


Looking Back:

According to the latest ForeclosureRadar statistics, foreclosure trends were mixed having increased 10.4% in California but decreased 64.2% in Oregon.  According to the NAHB, there were fewer affordable homes due to the increase in home prices.  385,000 permanent loan mods were completed in the first half of 2012 according to HOPE NOW.

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.

The Norris Group Real Estate News Roundup 2/1/13

Friday, February 1st, 2013


Tight inventories weigh on prospects for 2013 growth
U.S. home prices crawl upward
U.S. Home Vacancies Fell in 4th Quarter From Prior Year
U.S. Mortgage Rates Rise With 30-Year Highest in 4 Months
Economy Adds Another 157,000 Jobs; Rate Up to 7.9%
Q4 GDP Falls for First Time Since Recession Ended
San Bernardino County Rejects Eminent Domain Proposal
Housing Recovery Hit by Low Inventory
FHA to hike premiums on mortgages
LPS Resolves ‘Robo-Signing’ Allegations in $127M Multistate Settlement

Today’s News Synopsis:

Aaron Norris gives the news of the week in the world of real estate in this week’s video.  The Labor Department reported 157,000 jobs were added last month, showing an increase in jobs but slower rate month-over-month when 196,000 jobs were added in December.  The multifamily market has showed tremendous progress across the nation with the housing crisis and stronger economic climate.

In The News:

CNN Money“Jobs report: Steady hiring continues” (2-1-13)

“The jobs recovery continued to crawl forward at a slow pace in January, and there’s little hope it will pick up any time soon.  The U.S. economy added 157,000 jobs in January, according to a Labor Department report released Friday. That’s slower growth than in December, when employers hired 196,000 workers.”

Housing Wire“RBS: 10-year Treasury yield will grow despite bond-buying strategy” (2-1-13)

“The 10-year Treasury yield rose by 2% this week, its highest level since the Federal Reserve announced the continuation of an open-ended third round of quantitative easing on Sept. 13.”

DS News“Report: Foreclosure Inventory Down Nearly 20% from Year Ago” (2-1-13)

“In December, the number of homes in some stage of the foreclosure process continued to shrink, and fewer homes were lost to foreclosure, according to the National Foreclosure Report from Corelogic.”

Housing Wire“NRLB decision brings out CFPB opponents” (2-1-13)

“Opponents of the Consumer Financial Protection Bureau introduced legislation this week that would prevent the CFPB from enforcing or implementing regulations without a constitutionally confirmed director in place.”

Realty Times “Mortgage Rates Trending Higher” (2-1-13)

“In Freddie Mac’s results of its Primary Mortgage Market Survey®, mortgage rates continuing to trend higher amid a growing economy led in part by the recovering housing market.”

Inman“IRS provides guidance on HAMP principle reductions” (2-1-13)

“The Home Affordable Modification Program (HAMP) was established a few years ago by the Departments of the Treasury and Housing and Urban Development to help homeowners who are underwater avoid foreclosure.”

DS News“Multifamily Sector to Remain Strong with a Few Hiccups in Some Markets” (2-1-13)

“The recent housing crisis and the broader economic climate have led to a strong multifamily housing market nationwide. Marcus & Millichap Real Estate Investment Services’ recently released National Apartment Report promises another year of expansion in the multifamily market as ‘the alignment of powerful demographic and economic trends continues to fortify nationwide apartment performance’.”

Housing Wire“Lawmakers request more transparency in foreclosure settlement” (2-1-13)

“In an attempt to boost transparency, two lawmakers requested documents related to the $8.5 billion foreclosure settlement intended to compensate homeowners who allegedly experienced improper foreclosures.”

Hard Money Loan Closed

Winchester, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $195,000 on a 5 bedroom, 3 bathroom home appraised for $289,000.


Bruce Norris of The Norris Group will be speaking at the 2013 Real Estate and Tax Strategies Kick-Off Brunch on Saturday, February 9, 2013.

Bruce Norris of The Norris Group will be presenting his newest talk Poised to Pop: Quadrant Four Has Arrived at OCREIA on Thursday, February 21, 2013.

Bruce Norris of The Norris Group will be presenting his newest talk Poised to Pop: Quadrant Four Has Arrived at IEIF on Tuesday, February 26, 2013.

Looking Back:

170,000 jobs were added to the private sector, although job growth overall was slower for the month of January as companies were hiring fewer people.  In updated news from the previous day, the home ownership rate decreased for 7 years straight and was at levels that had not been seen in almost 14 years.  Both mortgage rates and applications continued to stay low.

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.

California Forecast 2013: More of the same save the black swan by Sean O’Toole

Wednesday, December 12th, 2012

Bruce Norris, The Norris GroupIn 2012, we saw the continuation of a housing recovery in California, with solid sales volumes and price increases throughout much of the state.  More importantly, short sales, loan modifications, price increases and even foreclosures helped many get our of being underwater on their homes.  Many would say this recovery is artificial.  And, while there is no question government intervention played a major role, it appears unlikely that intervention will end anytime soon; so the recovery is likely to persist-save the possibility of a black swan.

The biggest change in 2012 was the dramatic decline in foreclosure sales, and as a result, bank owned properties (REOs).  The “foreclosure wave” that many others predicted has yet to materialize in California.  Instead, over the past 12 months, notices of default plunged by 48.9 percent year-over-year, foreclosure sales fell 27.7 percent y-o-y and REO inventories declined 34.9 percent y-o-y.  While we correctly predicted that there would be no foreclosure wave, this decline was steeper and sooner than we expected.

For 2013, we largely expect more of the same.  Demand will remain strong thanks to low interest rates and affordability.  Housing supply will remain constrained, largely due to foreclosure intervention.  Prices will rise, though likely at a slower pace.  But unlike 2012, we expect sales volume will decline due to further decreases in supply.

Demand will remain relatively strong, despite structural issues

  • The Federal Reserve is clearly committed to monetary-stimulus programs that will keep mortgage interest rates at or near record lows.  Low interest rates have and will continue to positively impact demand.
  • In many parts of California, rents remain higher than payments, despite recent price increases, making housing attractive both to buyers and investors. This positive impact on demand may be offset by further price increases.
  • Early foreclosure “victims” may now qualify again for a mortgage, and choose to return to homeownership.  This new set of buyers will increase demand for scarce inventory.
  • Negatively impacting demand is the reality that homeowners with equity are not moving up at the rate they did during and before the credit bubble, and instead are hunkering down.
  • Nearly a quarter of all homeowners are underwater, owing more than their homes are worth.  While these homeowners may be able to short sell, they are typically unable to repurchase, and are forced instead to rent negatively impacting demand.
  • Demand also continues to be constrained by tighter mortgage lending standards.  Given that most mortgages are still government backed, and that the government backed entities are still struggling with losses that are blamed on loose lending standards, we don’t expect mortgage lending standards to ease anytime soon.

Supply will remain tight, with the inventory of homes for sale at record lows

  • Government intervention will continue to play a huge role in the foreclosure market.  The National Mortgage Settlement Program, the Home Affordable Modification Program (HAMP), and the California Homeowner Bill of Rights legislation that goes into effect on January 1, 2013, will all continue to put downward pressure on foreclosures and foreclosure inventory.  Foreclosures have been a significant source of supply since 2008, and these continued declines will hurt sales volume in 2013, likely dropping foreclosure supply to half the level seen in 2012.
  • Similar to the impact on demand, the hunkering down of homeowners with equity, and the inability of underwater homeowners to sell, except through short sale, will negatively impact supply.
  • Short sales will likely increase in 2013.  We believe this is the sole bright spot for housing supply.  Banks ultimately want to clean up non-performing assets, and short sales provide clear benefits to banks over foreclosing including: faster disposition, better recovery of value, less political opposition, and reduced risk of homeowner lawsuits.  That said, short sales are at risk, as the tax exemption established under the Mortgage Forgiveness Debt Relief Act of 2007 is set to expire at the end of this year.  This tax exemption allows mortgage debt forgiven by a lender in a short sale, loan modification or foreclosure to be exempt from federal taxation.  we see the risk of this occurring as low, and believe Congress will choose to extend the Act for another year.  Still short sellers and their Realtors should push to close currently pending deals before year-end, just to be safe.

Housing prices will rise, but increases will be constrained

  • Continued demand, combined with the continued constraint of supply, should result in prices continuing to rise throughout 2013, though likely more moderately than in 2012.
  • The increase in home prices will continue to be constrained by appraisals.  As bidding wars push prices beyond those supported by recent sales, getting purchase prices to appraise will continue to be a challenge.  2012 saw a willingness of buyers to bring cash to the table to overcome this issue.  Not all buyers have ability, which will make this market especially difficult for first-time buyers.
  • The increase in home prices will also be constrained by affordability and return on investment (ROI).  The key ingredient to fast rising prices in 2012, was the fact that house payments , even after taxes and insurance, were lower than rent in many areas.  This also led to very strong demand for rentals by investors seeking, and finding, high returns on their investment.  Demand from these buyers has been the critical driver behind price increases to date, but as prices rise affordability and returns drop.

Other factors in 2013

  • We believe more households will become renters in 2013, through short sales and foreclosures, than will become homeowners.  This will continue the strong demand for rentals, and continue to put upward pressure on rents throughout much of California.
  • Trustee sale investors will continue to see strong competition at the steps.  However, as prices continue to rise, they may see the large rental buyers move away from the auctions, and perhaps even California, as they seek better returns elsewhere.  This lessening of competition may help offset declines in foreclosure volume for the traditional trustee sale investor, who focuses on restoring foreclosures for homebuyers.
  • Trustee sale investors also need to be aware the FHA’s anti-flipping waiver expires on December 31, 2012, and to date there has been no announcement to extend the waiver.  In 2011, however, the announcement to extend the waiver was made on December 28, so we remain hopeful they will again extend it.  We actually believe it would be better to let the waiver expire to discourage flipping, and instead exempt trustee sale and sheriff sale purchases, which are non-market transactions and require a professional purchaser to flip the property in order to make it available to most homebuyers.
  • As the end of 2012 approaches, debate over the mortgage interest deduction is intensifying.  We believe the debate is mainly political posturing.  Many Congress members have second homes in Washington and benefit more than most from the mortgage interest deduction.  We highly doubt our elected leaders will vote against their self-interest, and when the push comes to shove, they will vote to keep the deduction.  We also think it would not be smart to do it now.  That said, we do think the mortgage interest deduction benefits banks, at the expense of homeowners by encouraging debt rather than real ownership.
  • We expect taxes to rise in 2013, more for some than others.  In addition to the unknown tax increases associated with the expiring Bush tax cuts, the Affordable Care Act will impose an estimated $260 billion in new taxes in 2013, and the passing of Proposition 30 will significantly increase taxes for higher income earners in California.  Higher taxes take money away from consumers, constraining job growth and possibly keeping a lid on demand for housing.  With higher income earners clearly being targeted, the most affluent neighborhoods are likely to be the hardest hit.

The risk of a black swan should not be overlooked

The term “black swan” comes from Fooled by Randomness by Nassim Taleb.  The idea is that rare, unexpected, events are actually the norm, and should be expected.  Today we face a number of risks that no one, including us, expects will happen.  We summarize some of these are here because we believe Mr. Taleb is right, and we should always prepare for the unexpected.

  • While hopefully resolved before the start of 2013, the so-called “Fiscal Cliff” creates real uncertainty for next year.  If Congress fails to act within the next couple of weeks, taxes will increase by an estimated $500 to $700 billion, almost certainly sending the U.S. economy into recession.  Most expect some sort of compromise, even if just pushing the issue into the future.  We are concerned the economy will tough, regardless of the outcome; and that much of the current political posturing is less about any real attempt to resolve the issue, and more about making sure the other party takes blame for what’s ahead.
  • The Middle East continues to be highly volatile.  A crisis there could send fuel prices skyrocketing; and any US involvement would also result in new spending and debt that the country can little afford.  Resulting impacts to the economy, and possibly interest rates, would not be favorable to housing.
  • The Eurozone debt crisis continues to make headlines.  In this interconnected world, it would be unwise to think that further problems there could not impact us here.
  • Something else, even more unexpected than those we’ve outlined above.

Despite the risks, government intervention, higher taxes, and the other issues that keep up at night, we remain relatively bullish on the housing market for 2013.  We have little doubt that fewer people will be underwater by the end of the year, and that housing will have proven a relatively safer investment than entrusting your money elsewhere.

And no, there will still not be a wave of foreclosures.

Connect with Sean O’Toole or

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See also Sean’s TNG profile page with links to all the radio shows including those for I Survived Real Estate.

The Norris Group Real Estate News Roundup 8/5/11

Friday, August 5th, 2011

Homeownership Rate Drops to 13-Year Low
June Pending Home Sales Rise
Mortgage Applications Increase, But Still Low in Latest MBA Weekly Survey
Job growth slows and layoffs rise to 16-month high, reports say
Home prices edge up in June, but fail to meet 2010 levels
Mortgage Rates Drop to Lowest of the Year
Senate steps toward new mortgage servicing standard
Key US markets with “pending” signs of life
House legislation would launch FDIC investigation
RealtyTrac Tool Provides Targeted Lists of Defaults, Auctions, and REOs
Investors charge ahead with another reps and warranties case against BofA
S&P: Trouble Ahead for PMI Mortage Insurance Co.

Today’s News Synopsis:

This week’s video gives the news of the week in the world of real estate and other big events. PMI Mortgage Insurance Co. has suffered severe financial losses and therefore may have to cut back on writing insurance policies.  DS News reported the unemployment rate is now at 9.1%.  Bank of America has reached a settlement with HUD to give loan modifications to 57,000 borrowers whose loans were not handled properly.

In The News:

Bloomberg“Debt Restructuring Would Spur Growth: Reinhart” (8-5-11)

“A restructuring of U.S. household debt, including debt forgiveness for low-income Americans, would be most effective in speeding economic growth, said Carmen Reinhart, a senior fellow at the Peterson Institute for International Economics in Washington.”

Housing Wire“HAMP mortgage mods reaching permanent status faster” (8-5-11)

“Homeowners who entered into a Home Affordable Modification Program trial within the last year were transferred into a permanent workout almost two months faster than those who entered the program earlier.”

DS News“Unemployment Rate Slips to 9.1%” (8-5-11)

“After heading higher for three straight months, the nation’s unemployment rate declined to 9.1 percent in July, down from 9.2 percent in June, according to figures released Friday by the U.S. Department of Labor. The economy added 117,000 jobs last month.”

Inman “Private mortgage insurers face uncertainty” (8-5-11)

“Cracks are again appearing in the foundations of the private mortgage insurance business, as companies that insure home loans with down payments of less than 20 percent for Fannie Mae and Freddie Mac face rising claims and continue to struggle for market share against government-backed FHA and VA programs.”

Realty Times “Consumers, real estate pros tap shift to rentals” (8-5-11)

“Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates dropping sharply amid falling bond yields and signs of a weaker than expected economy.”

Los Angeles Times – “Construction employment hits 15-month high in July” (8-5-11)

“Another reason to not declare the end of the world as we know it, yet: Construction employment climbed last month, hitting a 15-month high, according to the Associated General Contractors of America.”

Housing Wire – “Obama administration July housing scorecard sends mixed signals” (8-5-11)

“The nation’s housing market experienced an uptick in home prices this summer, but remains constrained by declines in home values in foreclosures and distressed real estate, the Obama Administration said in its July Housing Scorecard report.”

San Francisco Chronicle – “Is The Housing Bubble Over?” (8-5-11)

“For most parts of the U.S., the housing bubble peaked in 1996 and prices have steadily declined ever since. The amount of decline has varied by city and state, driven by several factors such as job losses, demographics and the magnitude of run-up in prices.”

Realtor Magazine“S&P: Trouble Ahead for PMI Mortage Insurance Co.” (8-5-11)

“PMI warned that it may have to stop writing insurance policies in 16 states due to the company’s severe financial losses.  On Thursday, Standard & Poor’s downgraded the PMI Group and its subsidiary PMI Mortgage Insurance Co.’s credit and financial strength rating, giving it a negative outlook due to the company’s steep losses in recent months.”

DS News“BofA to Pursue Loss Mitigation Under HUD Settlement” (8-5-11)

“Bank of America and the Department of Housing and Urban Development (HUD) have reached a settlement regarding 57,000 delinquent government-issued mortgages serviced by the bank.”

Looking Back:

Freddie Mac reported 30-year fixed mortgage rates fell below 4.5%. Home prices increased 8.1% from this time in 2009, according to Clear Capital. Statistics from the Department of Labor showed initial unemployment insurance claims rose 19,000 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 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.

The Norris Group Real Estate News Roundup 5/23/11

Monday, May 23rd, 2011

Today’s News Synopsis:

The FBI said property crimes have dropped 2.5% in the West. A new study shows that homeowners at least two-months delinquent on their mortgage are more likely to strategically default. The Treasury Department released a free online calculator that provides borrowers with an estimate of whether or not they qualify for HAMP. Homeowner insurance premiums are increasing across multiple states.

In The News:

Los Angeles Times“California creating mortgage fraud task force” (5-23-11)

“California Atty. Gen. Kamala Harris, saying that years of unscrupulous lending still haunts the state, is creating a 25-person task force to target mortgage fraud of any size — from small operations that preyed on troubled borrowers to corporations that sold risky loans as safe investments.”

Housing Wire“FBI: Property crimes down across the board in 2010” (5-23-11)

“Property crimes decreased in each region of the country with a 3.8% drop in the South; a 2.7% decline in the Midwest; a 2.5% reduction in the West; and a 0.5% dip in the Northeast. The FBI said property crimes fell the deepest in cities with populations of more than 500,000 and less than 1 million with a 4% drop.”

Housing Wire“Watch for strategic defaulters, economists suggest after studying Countrywide data” (5-23-11)

“Homeowners at least two-months delinquent on their mortgage may be more apt to strategically default if offered a mortgage modification despite the damage to their credit.”

Bloomberg“U.S. Commercial Real Estate Prices Decline to Post-Crash Low, Moody’s Says” (5-23-11)

“The Moody’s/REAL Commercial Property Price Index dropped 4.2 percent from February and is now 47 percent below the peak of October 2007, Moody’s said in a statement today.”

Dr. Housing Bubble“FHA insured loans now cross a giant tipping point exceeding $1 trillion in book value at risk.” (5-22-11)

“The FHA total book value of loans has soared to over $1 trillion. These are loans made with 3.5 percent down payments and carry laxer lending standards. So it should be no surprise that defaults for FHA insured loans are hitting record levels.”

Housing Wire“CMBS issuance to top $40 billion in 2011” (5-23-11)

“Commercial mortgage-backed securities are gaining steam with $9 billion issued in the first four months of the year and $40 billion expected by the end of 2011, according to Jones Lang LaSalle”

Housing Wire“Treasury puts HAMP eligibility calculator online” (5-23-11)

“The Treasury Department on Monday released a free calculator online that will provide borrowers an estimate on whether or not they qualify for the Home Affordable Modification Program.”

Wall Street Journal“Homeowner’s Insurance Premiums Are Rising” (5-22-11)

“After five years of relatively stable premiums, some of the country’s biggest insurers have raised rates or say they plan to. Premiums vary by state, but last year, State Farm Mutual Automobile Insurance says it increased homeowners rates 7.3% on average and, this year, has raised them in 18 states, including a few by more than 7%. It cut rates in just two states.”

Orange County Register“Homebuilders ‘coming out of hibernation’” (5-23-11)

“At least 28 new housing developments either have opened since the fall or will be open by next fall, a Register survey of local builders shows. Those projects include more than 3,000 houses, townhomes and duplexes. By comparison, fewer than 2,000 building permits were issued for such homes in the same period in 2009-10, and only around 1,600 were issued in 2008-09.”

Orange County Criminal Attorneys Blog“SCOTUS: California Must Release More Than 1/4 of Prisoners” (5-23-11)

“California must address its overcrowding crisis by releasing over 1/4 of its prison imnate population, according to the Los Angeles’ Times Supreme Court orders California to release tens of thousands of prison inmates. In a 5-4 decision written by Justice Kennedy, the SCOTUS has upheld a federal court order that called for releasing 38,000 to 46,000 prisoners.”

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.

The Norris Group Real Estate News Roundup 1/12/11

Wednesday, January 12th, 2011

Today’s News Synopsis:

According to CoreLogic, in November the price of homes fell once again for the fourth month in a row.  Moody’s Investor Services reported a 79% increase in delinquncies for commercial mortgage-backed securities.  The Mortgage Banker’s Association also reported that applications for mortgage refinancing increased this week 2.2%.  Mortgage News Daily gave an update that the conventional 30-year fixed mortgage increased again to 4.875%.

In The News:

DS News – “LRES Deploys DepotPoint Technology to Manage REO Sales Demand” (1-12-11)

LRES Corporation, a provider of valuations and asset management for the mortgage, banking, and real estate industries, now uses TrackPoint REO technology to
facilitate real estate-owned transactions on behalf of its clients.”

Housing Wire – “CMBS delinquencies rose 79% in 2010: Moody’s” (1-12-11)

“The number of delinquencies within the conduit/fusion space of commercial mortgage-backed securities rose 79% in 2010, ending December at 8.79% up from 4.9% a year earlier,
according to Moody’s Investors Service.”

Inman – “Chase loss mitigator convicted of soliciting bribe” (1-12-11)

“A former Chase Bank loss mitigation specialist faces up to 95 years in prison after being convicted of alerting a borrower — who’d fallen behind on payments on seven properties —
of a possible criminal mortgage fraud investigation.”

Mortgage Bankers Association – “Mortgage Refinance Applications Increase in Latest MBA Weekly Survey” (1-12-11)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 7, 2011.  The Market Composite Index, a measure of mortgage loan application volume, increased 2.2 percent on a seasonally adjusted basis from one week earlier.”

Housing Wire – “Mortgage investors urge servicers to cap delinquent loans handled per employee” (1-12-11)

“The Association of Mortgage Investors released a white paper Wednesday on how to improve the servicing industry and recommended capping the amount of seriously delinquent loans each
employee handles at between 100 and 150.”

Inman“Prices down 4 months in a row” (1-12-11)

“U.S. home prices declined for a fourth consecutive month in November, falling 5.07 percent from a year ago, according to a home-price index compiled by mortgage data aggregator CoreLogic.”

RisMedia – “Rental Resurgence: Owner of Vacation Rentals Optiminstic About their Rental Business in 2011, According to New HomeAway Report” (1-12-11)

“As leisure travel continues to rebound, owners of vacation rentals are expressing optimism about their bookings in 2011. In fact, HomeAway, Inc.—one of the world’s leading online vacation rental marketplaces—finds in its latest “HomeAway Vacation Rental Marketplace Report” that eight of 10 vacation rental owners anticipate their rental business this year will be stronger or about the same as it was in 2010.”

Mortgage News Daily – “Mortgage Rates: 4.875% is Best Execution. 4.75% Buydown is Expensive” (1-12-11)

“Yesterday we informed you that the best execution conventional 30 year fixed mortgage rate had fallen to 4.75%. Well it moved back up to 4.875% today.”

CNN Money – “Economy grows at moderate pace” (1-12-11)

“Economic growth continued to expand moderately over the past few weeks, the Federal Reserve said Wednesday.”

Bloomberg – “Fannie Regulator Asked by Lawmakers to Justify Bofa,  Ally Deals” (1-12-11)

“Fannie Mae’s regulator should provide information on whether $3.3 billion in settlements with Bank of America Corp. and Ally Financial Inc. over faulty mortgages were fair deals for taxpayers, U.S. lawmakers said.”

Looking Back:

The Federal Reserve made $46.1 billion in 2009. The MBA predicted that mortgage originations would decline by 39 percent in 2010. According to Integrated Asset Services, national home prices fell by 0.3 percent in November of 2009. FHA reported that foreclosure starts on mortgages from Fannie Mae and Freddie Mac decreased by 15 percent from the second quarter to the third quarter of 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.