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The Norris Group Real Estate News Roundup 4/7/11

Thursday, April 7th, 2011

Today’s News Synopsis:

CoreLogic said home prices fell 6.7% in February, and Clear Capital claims home prices in the West declined 4.3% in the previous quarter. According to Freddie Mac, mortgage rates increased to 4.87% last week. Analysts are concerned that a Federal shutdown would have dramatic effects on the California economy and the FHA.

In The News:

Housing Wire – “Home prices fall for seventh straight month: CoreLogic” (4-7-11)

“According to the CoreLogic (CLGX: 18.48 -1.75%) Home Price Index, prices fell 6.7% in February compared to the same month in 2010. This follows a 5.5% year-over-year drop in January.”

Housing Wire – “Jobless claims dip again in April” (4-7-11)

“The number of initial jobless claims filed by unemployed Americans dropped to 382,000 during the week of April 2, down from last week’s revised figure of 392,000, according to data from the U.S. Labor Department released Thursday.”

Sacramento Bee – “Summary Box: Fixed mortgage rates inch up” (4-7-11)

“Freddie Mac said the average rate on a 30-year fixed mortgage rose to 4.87 percent from 4.86 percent the previous week. The average rate on the 15-year fixed mortgage increased to 4.10 percent from 4.09 percent.”

San Francisco Chronicle – “Federal shutdown would hit California hard” (4-7-11)

“Employees deemed essential, such as air traffic controllers, doctors at VA hospitals, border agents and military personnel, probably will remain on the job as they did during the last major shutdown in 1995. Others, such as Internal Revenue Service employees at 27 California locations, might find their offices closed on Monday.”

Housing Wire – “Analysts say FHA shutdown possible without budget consensus” (4-7-11)

“If the government were to shutdown, two important steps in the FHA origination process would be put on hold. FHA lenders may still be able to originate loans, but they would have to wait on obtaining case numbers and a mortgage insurance certificate to be issued.”

Housing Wire – “Hope Now reports a mixed-bag of results” (4-7-11)

“Hope Now, an alliance of mortgage servicers and home retention counselors who are pushing to save distressed properties, said the month of February brought mixed results with servicers reporting fewer loan modifications and falling delinquency rates. In February, the number of completed loan mods fell from 100,186 to 87,000.”

Bloomberg - “Mall Vacancies Climb to Highest in Decade as U.S. Store Closings Persist” (4-7-11)

“The vacancy rate climbed to 9.1 percent from 8.9 percent a year earlier and 8.7 percent in the fourth quarter, the research firm said in a report today. It was the highest since Reis began publishing data on regional malls in 2000.”

Housing Wire – “Home prices double-dip in West but flatten nationally: Clear Capital” (4-7-11)

“March home prices in the West declined 4.3% from the previous three months and reached a new low since 2001, according to real estate data provider Clear Capital.”

Looking Back:

One year ago, the MBA reported that 1.2 million households were lost from 2005 to 2008. Greenspan defended the fed’s lack of oversight in the subprime market claiming that consumer protection was a high priority at the time. A Fannie Mae survey showed 61 percent of homeowners and renters said the economy was on the wrong track. Fitch reported subprime RMBS delinquencies fell to 46.3% in March 2010.

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 2/2/11

Wednesday, February 2nd, 2011

Today’s News Synopsis:

Mortgage application volume increased 11.3% from last week, according to the MBA. Fannie Mae and Freddie Mac are raising risk fees they charge lenders on loans they buy for resale to investors. HOPE NOW reports 1.76 million homeowners received a mortgage modification in 2010. Statistics from DBRS show 50 percent of loan modifications result in re-default.

In The News:

Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (2-2-11)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 28, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 11.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 13.2 percent compared with the previous week.”

USA Today – “Costs for home mortgages rise as Fannie, Freddie hike fees” (2-2-11)

“For the first time since 2009, Fannie Mae and Freddie Mac are raising risk fees they charge lenders on loans they buy for resale to investors. The mortgage giants are also adding risk fees to more loans extended to people with stellar credit. To avoid a fee or to get a discount, most borrowers will need FICO scores of 740 or better and down payments of 25% or more. Lenders could absorb the cost, but most are expected to add it to loan costs within days, if they haven’t already, says Cameron Findlay, LendingTree economist.”

Los Angeles Times – “Agency warns banks of foreclosure protection for military personnel” (2-2-11)

“The new Consumer Financial Protection Bureau warned banks not to violate laws that protect active-duty military personnel from home foreclosures and high interest rates.”

Housing Wire – “Dow Jones closes above 12,000 for first time since 2008″ (2-1-11)

“The Dow Jones Industrial Average closed up 148.23 points at 12,040.16, the first time it ended a trading above 12,000 since just before the financial crisis in June 2008.”

Housing Wire – “Mortgage modifications increase 42% in 2010: Hope Now” (2-2-11)

“Roughly 1.76 million homeowners received a modification on their mortgage in 2010, a 42% increase from the year before, according to the Hope Now alliance of servicers, investors, insurers and nonprofit counselors.”

Housing Wire – “Private sector added 187,000 jobs in January” (2-2-11)

“The private sector added 187,000 jobs in January, led mostly by gains in small business, especially in the service industry, according to the ADP National Employment Report.”

Housing Wire – “DBRS finds half of mortgage modifications redefault” (2-2-11)

“When a mortgage servicer modifies the loan of a distressed homeowner, chances are 50-50 that they’ll redefault, according to a 2010 review of the sector from credit rating agency DBRS.”

Housing Wire – “CMBS takes a beating as delinquencies reach record high” (2-2-11)

“Commercial mortgage-backed securities delinquencies hit a record high, as the cumulative total jumped 20 basis points. According to a securitization report by Barclays Capital, 9.1% of all CMBS loans were 60 days or more delinquent as of Jan. 31.”

Orange County Register – “Dana Point homes take half a year to sell” (2-2-11)

“The newest ‘market time’ of Dana Point – Thomas’ math that tracks theoretical time it would take to sell all listed homes at the pace of new escrows opened — is 6.46 months. That is +11% (or roughly 19 days) in a year.”

Looking Back:

One year ago, the NAR’s index  showed that pending home sales increased by 1 percent in December. Commercial and multifamily mortgage loan originations increased by 15 percent during the 4th quarter of 2009.  The FHA reported that borrower delinquencies increased by 6.5 percent from the previous year. Fannie Mae was offering a 3.5 percent discount to all people who buy REO properties.

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 1/5/11

Wednesday, January 5th, 2011

Today’s News Synopsis:

Altera Real Estate forecasts an increase in interest rates for 2011. Hope Now reports mortgage lenders completed nearly 1.65 million permanent loan modifications in November. President Obama signed the National Credit Union Stabilization Act.

In The News:

Orange County Register – “Realistic sellers eyed as key to stable prices” (1-5-11)

“There’s a ton of pressure on rates to increase. An increasing deficit with the Fed printing money at warp speed, a government unwilling to cut spending, and no leader anywhere in the world willing to come up with a definitive game plan to get us out of this pickle, translates to mounting pressure on interest rates.”

Mortgage Bankers Association – “Mortgage Applications Drop the Week Before Christmas and Increase the Week After in Latest MBA Weekly Surveys” (1-5-11)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the weeks ending December 24, 2010 and December 31, 2010. For the week ending December 24, 2010, the Market Composite Index, a measure of mortgage loan application volume, decreased 3.9 percent on a seasonally adjusted basis from the prior week. For the week ending December 31, 2010, this index increased 2.3 percent on a seasonally adjusted basis.”

Housing Wire – “Hope Now: November mortgage modifications doubled foreclosure sales” (1-5-11)

“Mortgage lenders completed about 1.65 million permanent loan modifications through November vs. 1 million foreclosure sales, according to Hope Now.”

Housing Wire – “CMBS delinquencies hit record high in December” (1-5-11)

“The delinquency rate on commercial mortgage-backed securities reached 9.2% in December, the highest on record, according to analytics firm Trepp.”

Housing Wire – “Treasury relaxes rules to free-up HAFA short sales” (1-5-11)

“The Treasury Department took action in December eliminating some rules it said have held back short sales through the Home Affordable Foreclosure Alternatives program.”

Housing Wire – “Obama signs credit union stabilization act for NCUA to avoid Treasury borrowing” (1-5-11)

“President Obama returned from his vacation to a heavy workload, and on Tuesday signed 35 bills into law (pictured below). One of which is the National Credit Union Stabilization Act.”

Housing Wire - “Trade groups urge Federal Reserve to adjust Reg Z’s rule on appraisal fees” (1-5-11)

“Four appraisal trade associations urged the Federal Reserve Board to require appraisal management companies to disclose their fees to consumers and to reconsider the language and implementation of an interim rule that requires AMCs to pay ‘customary and reasonable’ appraiser fees.”

Orange County Register – “Great Park homebuilder gets financing” (1-5-11)

“FivePoint Communities, a company spun off by Miami-based builder Lennar Corp. to plan and build the Heritage Fields housing and other major projects, reportedly will get $400 million. Those funds will help FivePoint move forward on what is expected to eventually be a master-planned community with 5,000 new residences in Irvine. According to the WSJ, the fresh funds come from Boston-based State Street Bank & Trust Co. plus other investors.”

Looking Back:

One year ago, pending home sales decreased by 16 percent from October to November. The Mortgage Bankers Association believed that the third quarter of 2009 likely marked the end of the recession, but expected to see continuous trouble in the real estate market. Lockhart predicted there would be another spike in foreclosure activity. Realtors warned that buying REO properties can be risky for business.

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.

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The Norris Group Real Estate News Roundup 11/1/10

Monday, November 1st, 2010

Today’s News Synopsis:

Credit Suisse estimates Fannie Mae and Freddie Mac will have cumulative losses of $321 billion. Private mortgage servicers modified 119,585 loans in September, over 4 times as many modifications performed through HAMP. Statistics from the Federal Reserve show home equity accounted for 16.2% of net worth in the 2nd quarter.

In The News:

RecordNet.com - “Economic forecast heads south” (10-31-10)

“He previously forecast California’s unemployment rate would drop to 11 percent in 2011 and to less than 10 percent the year after. The October report now has state jobless rates remaining above 10 percent well into 2013. San Joaquin County will remain in the doldrums a while longer, with annual jobless rates hovering above 17 percent for the next two years before easing to 16.4 percent in 2013, according to the Pacific forecast.”

Market Watch – “White-collar recession, blue-collar depression” (10-30-10)

“the disparity between white-collar and blue-collar unemployment is stunning: 4.5% among college graduates versus 10.8% for those with a high-school diploma, and 14.3% for those without one.”

Daily Finance – “The Foreclosure Mess: It’s Even Worse in ‘Nonjudicial’ States” (10-30-10)

“In 23 states, before a lender can foreclose on a homeowner for defaulting on a mortgage, it must take the homeowner to court. As we’ve seen, even with judicial review that process has still been shot through with problems. But for a troubled homeowner in California, Texas and 25 other ‘nonjudicial’ states, the robo-signing scandal and foreclosure mess are even more dangerous because the lender doesn’t have to go to court to foreclose. Fraudulent paperwork can be used with impunity unless the homeowner is in bankruptcy, which is a judicial process, or unless the homeowner is represented in the foreclosure by an attorney who knows what to look for.”

Housing Wire – “SEC reminds banks to disclose impacts of mortgage repurchases, foreclosure reviews” (11-1-10)

“Major banks are struggling to get an accurate estimate on how much agency and private-label mortgage-backed securities losses they will be responsible for repaying to the purchasers of those securities, such as Fannie Mae and Freddie Mac.”

Housing Wire – “Credit Suisse projects $321 billion more losses for Fannie, Freddie” (11-1-10)

“Credit Suisse analysts estimate $321 billion in cumulative losses at Fannie Mae and Freddie Mac, based on a further 10% decline in home prices over the next year. Under that scenario, prices would flatten over in following year and experience a 3% annual appreciation going forward.”

Housing Wire – “TransUnion: delinquent mortgage roll rates highest in month after recession” (11-1-10)

“The number of delinquent mortgages that moved to a more serious status peaked the month after the recession officially ended, according to a study by TransUnion. The credit information company said the level of consumers who rolled their delinquency status to 60 days from 30 and to 90 days from 60 reached its highest point in July 2009. Nearly a quarter of those who were 30-days late on their mortgage payments in June 2009 became 60 days past due in July 2009, according to TransUnion”

Housing Wire – “Private mortgage modifications outnumber HAMP 4 to 1 in September” (11-1-10)

“Mortgage servicers modified 119,585 loans through private programs in September, more than four times the 27,840 done through the Treasury’s Home Affordable Modification Program, according to the Hope Now alliance.”

Housing Wire – “Monday Morning Cup of Coffee” (11-1-10)

“Fannie Mae directed servicers to work closely with Housing Finance Agencies across the country now that the HFAs received a total $7.6 billion in Hardest Hit Funds from the Treasury Department. The money will be used to provide temporary relief to unemployed mortgage borrowers through the HHF Unemployment Programs and delinquent borrowers through the HHF Reinstatement Programs.”

Bloomberg - “Housing Matters Little to U.S. Consumers’ Wealth: Chart of the Day” (11-1-10)

“home equity accounted for 16.2 percent of net worth at the end of the second quarter, the Fed’s data showed.”

Bloomberg - “JPMorgan Trims Biggest Mortgage Putback Estimate to $90 Billion” (11-1-10)

“JPMorgan Chase & Co. analysts lowered their estimate for the cost to sellers of repurchasing soured U.S. mortgages to as much as $90 billion from a range that went as high as $120 billion.”

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 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 10/7/10

Thursday, October 7th, 2010

Today’s News Synopsis:

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 will soon be able to view sales prices, sale dates, and other sorts of information on foreclosure sales.

In The News:

Inman - “Calif. short-sellers avoid deficiency judgments” (10-7-10)

“California Gov. Arnold Schwarzenegger has signed into law a bill that protects homeowners who get their lender’s approval for a short sale from deficiency judgments, but vetoed related legislation that would have extended similar protections to homeowners who have refinanced their mortgage.”

Associated Press – “Mortgage rates fall to decades-low of 4.27 pct.” (10-7-10)

“The average rate for 30-year fixed loans dropped to 4.27 percent, mortgage buyer Freddie Mac said Thursday. That’s the lowest on records dating back to 1971, and down from 4.32 percent the previous week.”

Housing Wire – “Government Oversight Chairman seeks nationwide foreclosure moratorium” (10-7-10)

“Rep. Edolphus Towns (D-NY), chairman of the House Committee on Oversight and Government Reform, called for top banks to suspend foreclosures and for New York Attorney General Andrew Cuomo to investigate foreclosure practices.”

Housing Wire - “President Obama won’t sign notary bill, sends back to Congress” (10-7-10)

“President Obama will not sign H.R. 3808, the Interstate Recognition of Notarizations Act, which would have allowed federal and state courts to recognize notary signatures from other states.”

Housing Wire – “RealtyTrac to provide pricing on previously sold foreclosures” (10-7-10)

“RealtyTrac, an online foreclosure marketplace, added a new feature that allows users to see information such as pricing on properties sold in the last nine months. The data will be available for more than 2.5 million recently sold properties. Users will be able to view sales prices, sale dates, foreclosure status of the property when it was sold, number of bedrooms, bathrooms, square footage, lot size and the year the home was built.”

Housing Wire – “FHFA faces another lawsuit over PACE program” (10-7-10)

“The Natural Resources Defense Council has sued the Federal Housing Finance Agency and the Office of the Comptroller of the Currency claiming the agencies illegally halted the Property Assessed Clean Energy program, known as PACE.”

Housing Wire – “Hope Now: Industry completes nearly 150,000 loan mods in August” (10-7-10)

“Hope Now, a private sector alliance of mortgage servicers, investors, mortgage insurers and nonprofits, said the industry completed nearly 150,000 permanent loan modifications in August, with 91% of proprietary modifications including a reduction of principal and interest.”

Housing Wire – “Weekly jobless claims down 2.4% to 445,000″ (10-7-10)

“Initial jobless claims fell 2.4% last week to 445,000, which is the lowest level in a few months and lower than most analysts’ estimates. The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Oct. 2 decreased by 11,000 from the previous week’s upwardly revised figure of 456,000.”

Orange County Register – “First-time homebuyers at record high” (10-7-10)

“The leading edge of the 10- to 30-year-old age group — also known as Gen Y or echo boomers — already is emerging as a factor in the housing market, said Joel Singer. For example, the average age of first-time buyers is 30 years old, and first-time buyers now make up 46% of the the market. First-time sellers make up 47% of the market.”

Looking Back:

One year ago, John Burns Real Estate Consulting claimed home prices would likely decrease again. Both the NAR and the MBA were in favor of extending the first time home buyer tax credit. A survey from the California Association of Realtors showed that 46 percent of California Realtors used some sort of social networking website in their work.

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 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 9/2/10

Thursday, September 2nd, 2010

Today’s News Synopsis:

Servicers made over 120,000 proprietary loan modifications in July, and 36,695 HAMP modifications. Pending home sales increased 5.2 percent in July, according to the NAR. MBA reports 30+ day commercial delinquencies increased to 8.22 percent in the second quarter. Freddie Mac’s weekly survey shows mortgage rates dropped again to a rate of 4.32%.

In The News:

The Press Enterprise – “New ways of viewing the housing meltdown” (9-1-10)

“At a meeting last night of the Inland Empire Investors, Norris said the federal government’s apparent agreement to allow banks to delay foreclosing on homes where the owners have ceased paying their mortgages for months on end is probably helping to hold up the economy. After all, the money that isn’t paying mortgages is going into the homeowners’ pockets and being spent on goods and services. Ironic, huhn?”

Mortgage Orb – “Proprietary Mods More Than Triple HAMP Mods” (8-31-10)

“Servicers completed more than 120,000 proprietary loan modifications in July – more than three times the number of mods completed through the federal Home Affordable Modification Program (HAMP), HOPE NOW reports. As reported by U.S. Treasury Department, servicers executed 36,695 HAMP modifications in July.”

Mortgage News Daily – “HUD Secretary Tiptoes Around Another Tax Credit, Pushes Balanced Housing Policy” (8-30-10)

“Donovan said that the dip in house sales in July was not unexpected because it would mark the end of the homebuyers’ tax credit that had been successful in spurring those sales. But, he said, the numbers were clearly worse than expected. The Secretary said, in response the Administration would be launching two additional critical tools in the next few weeks. The first will be an FHA refinancing effort to help borrowers who are underwater in their homes, the second is an emergency homeowners’ loan program to help unemployed borrowers to in their homes.”

NAR - “Pending Home Sales Rise” (9-2-10)

“The Pending Home Sales Index,* a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June, but remains 19.1 percent below July 2009 when it was 98.1. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.”

Mortgage Bankers Association – “MBA: Commercial Delinquencies Up for CMBS, Flat for Banks in Second Quarter” (9-2-10)

“Between the first quarter and second quarter 2010, the 30+ day delinquency rate on loans held in CMBS rose 1.39 percentage points to 8.22 percent. The 60+ day delinquency rate on loans held in life company portfolios decreased 0.02 percentage points to 0.29 percent. The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.01 percentage points to 0.80 percent. The 60+ day delinquency rate on multifamily loans held or insured by Freddie Mac increased 0.03 percentage points to 0.28 percent. The 90+ day delinquency rate on loans held by FDIC-insured banks and thrifts remained unchanged at 4.26 percent. ”

Inman - “Communities get ‘First Look’ at many REOs” (9-2-10)

“Federal housing officials have reached an agreement with mortgage lenders that will give nonprofit organizations and state and local governments right of first refusal to purchase foreclosed homes in certain targeted neighborhoods. Lenders participating in the ‘National First Look Program’ represent about 75 percent of the real estate owned (REO) marketplace, the Department of Housing and Urban Development announced Wednesday.”

Housing Wire – “Weekly jobless claims down 1.25% to 472,000″ (9-2-10)

“The Department of Labor said Thursday seasonally-adjusted initial claims fell to 472,000 for the week ended Aug. 28, down from an upwardly revised 478,000 for the previous week. The consensus estimate of analysts surveyed by Briefing.com expected claims to drop to 475,000 last week.”

Housing Wire – “Freddie 30-year FRMs set record low at 4.32%” (9-2-10)

“The Freddie Mac Primary Mortgage Market Survey reported the average rate for a 30-year fixed-rate mortgage (FRM) at 4.32% with an average 0.7 origination point for the week ending Sept. 2, down from last week’s average of 4.36% and a year ago, when the average was 5.08%. This is the lowest rate the survey has recorded since its inception in 1971.”

Housing Wire – “Bernanke says stopping housing bubble was not an option” (9-2-10)

“Speaking before the Financial Crisis Inquiry Commission this morning in Washington, Federal Reserve chairman Ben Bernanke said if steps could have been taken three years ago to stop the bubble in the economy, which eventually lead to today’s recession, it would not have been a prudent decision to do so.”

Housing Wire – “OCC: lending standards loosen somewhat from year earlier” (9-2-10)

“The 2010 survey of credit underwriting practices by the Office of the Comptroller of the Currency showed 65% of banks tightened standards for commercial products and 74% tightened up retail lending. The survey measures the most-common types of credit offered by 51 of the largest national banks for the 12 months ended March 31. The value of the loans surveyed was $4 trillion, or more than 93% of all outstanding loans in the national banking system, according to the OCC.”

Housing Wire – “Serious HFA delinquencies decline in Q110: S&P” (9-2-10)

“Overall delinquency rates for HFA loans remained high, increasing 1.67% between Q409 and Q110 to 6.05%; however, seriously delinquent HFA loans decreased to 6.05% from 6.57%.”

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 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 3/17/10

Wednesday, March 17th, 2010

Today’s News Synopsis:

The CBIA reports that new home sales decreased by 12 percent from January of 2009. Mortgage loan application decreased by 1.9 percent from last week. HOPE NOW made over 99,000 modifications in January, and HAMP made over 50,000.

In The News:

CBIA - “California New-Home Market Begins 2010 Still in the Red, CBIA Announces” (3-17-10)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 12 percent below January 2009. This was a slight improvement from the 15 percent year-over-year decline in December, but was still a lackluster pace. During January, 1,886 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 2,137 in January 2009. Sales of single-family homes were down by 17 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – rose by 8 percent and sales of condominiums were 4 percent lower than a year ago.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (3-17-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 12, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 1.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 1.7 percent compared with the previous week.”

Housing Wire – “Citi Mortgage Workouts Outnumber Foreclosures 15 to 1 in Q409″ (3-17-10)

“CitiMortgage, the mortgage servicing branch of Citigroup (C: 4.09 +0.99%), worked with nearly 128,000 borrowers in Q409 to avoid foreclosure on almost $19bn in mortgage loans, according to the company. Loan modifications in the distressed asset portfolios outpaced both foreclosures and delinquencies. Modifications increased 17% in Q409 from the previous quarter. For the entire year of 2009, Citi loan modifications increased 47% from 2008.”

Housing Wire – “HOPE NOW Modifies Mortgages Twice as Fast as HAMP” (3-17-10)

“HOPE NOW, an alliance between mortgage service professionals and non-profit counselors, reported 99,499 modifications in January, compared to 50,364 new permanent modifications under the Home Affordable Modification Program (HAMP). January HOPE NOW modification numbers dropped only slightly from 104,423 non-HAMP modifications in December, compared to roughly 35,000 permanent modifications under HAMP in that same month.”

Housing Wire – “Industry Wants Risk Retention Exemption in Dodd Bill” (3-17-10)

“Senator Christopher Dodd (D-CT), chairman of the Senate Banking Committee, unveiled details of a new bill to Congress yesterday that aims to overhaul the financial regulatory system and establish the Consumer Financial Protection Agency (CFPA). Under the Restoring American Financial Stability Act of 2010, financial firms would be required to hold a portion of the credit risk inherent in certain loan products on their books. This ‘risk retention’ is designed to make banks hold an interest in the financial products they create.”

Inman - “Fed to end MBS purchases” (3-17-10)

“Mortgage rates are expected to rise gradually as the Federal Reserve left a key short-term interest rate untouched Tuesday, but said it would wrap up $1.25 trillion in purchases of mortgage-backed securities this month. In a statement, the Federal Open Market Committee said its target for the federal funds overnight rate will remain in the range of zero to 0.25 percent, as inflation is likely to remain ‘subdued for some time.’”

Looking Back:

One year ago, over 15,000 homes and apartments were sold in Southern California within a month. The NAHB reported that housing starts increased by 22 percent in February of 2009. Builder confidence was at a record low for over two months.

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The Norris Group Real Estate News Roundup 12/04/09

Friday, December 4th, 2009

Today’s News Synopsis:

The unemployment rate declined to 10 percent during November. As of September, less than 0.3 percent of all trial modifications have become permanent. The FDIC announced plans that may require some lenders to make principal reductions on mortgages, rather than forbearing payment and reducing interest rates.

In The News:

Wall Street Journal – “Unemployment Rate Falls to 10%” (12-4-09)

“U.S. job losses in November posted the smallest drop since the start of the recession and the unemployment rate unexpectedly declined, a sign the labor market is finally healing as the economy recovers.”

Time - “Why the Loan-Modification Program Isn’t Working” (12-4-09)

“The problem the Administration is out to tackle is related to the structure of the Home Affordable Modification Program (HAMP). The first three months of a mortgage rewrite are something of a probation period— and very few homeowners are making it out of that trial. More than 650,000 borrowers have been placed in trial modifications, but as of September, fewer than 2,000 had become permanent.”

Housing Wire – “Moody’s Links Option ARM, Subprime Performance” (12-4-09)

“More than $200bn of outstanding pay-option adjustable-rate mortgages (ARMs) originated and securitized from ‘04-’07, according to market commentary by Moody’s Investors Service this week. This sector shows ‘dismal’ performance, with more than 40% of borrowers 60 or more days past due on payments. And many of these loans have yet to experience a recast event, when initial minimum monthly payments jump as much as 60%, according to sources interviewed by HousingWire for an upcoming issue.”

Housing Wire – “Forget Forbearance; FDIC Eyes Principal Forgiveness” (12-4-09)

“Institutions that acquire failed banks taken over by the Federal Deposit Insurance Corp. (FDIC) may soon be required to cut principal off mortgages instead of simply forbearing a portion until a later day or lowering interest rates, according to comments and FDIC official made to Bloomberg this week. The principal forgiveness might apply to as much as $45bn of mortgages from failed banks. Regulators so far in 2009 shut down 124 banks, costing the FDIC’s insurance fund billions of dollars and putting billions more in assets up for acquisition.”

Housing Wire – “Foreclosure Activity Outpaces Mods in October: Hope Now” (12-4-09)

“The mortgage servicing industry completed 271,563 total loan workouts in October, according to Hope Now, the private sector alliance of mortgage servicers, investors, insurers and non-profit counselors. Workouts included 198,373 repayment plans and 73,190 modifications. At the same time, the industry completed 94,450 foreclosure sales and initiated another 222,107 foreclosure starts.”

Press Enterprise - “Low interest rates are no panacea for region’s housing” (12-4-09)

“Inland experts say a shortage of inventory is suppressing sales of existing homes. Also, the high cost of land that home builders acquired makes it impossible for most of them to construct houses that can sell cheaply enough to compete with the foreclosure-ridden resale market.”

Mercury News – “Now’s really the time to buy a home, many say” (12-4-09)

“Mortgage rates are hovering at historic lows, home prices are just starting to edge up from total collapse, and the government is offering tax breaks to first-time and move-up buyers. It all adds up to this: In the real estate agent’s overworked phrase, there may never be a better time to buy a house. And this might not last for long, brokers and real estate agents say, especially since mortgage rates are probably headed up.”

Inman - “Buyer discounts continue slide” (12-4-09)

“For the ninth month this year, buyer discounts — the price paid compared to the last listing price of homes — shrank in October to a median of 2.7 percent, according to Zillow’s Real Estate Market Reports. That’s down from 2.9 percent in September and 4.6 percent in January.”

Bloomberg - “Banks Take Losses on Short Sales as Foreclosures Soar” (12-4-09)

“Banks are beginning to go along with short sales in increasing numbers, three years into a U.S. housing slump that pushed the economy into a recession and cut resale values by 30 percent from the peak in July 2006. Short sales almost tripled to 40,000 in the first six months of 2009 from the same period a year earlier. Yet for each short sale, there were 25 foreclosures started or completed in the first half of this year, according to data from the Office of Thrift Supervision and the Office of the Comptroller of the Currency. ”

Looking Back

One year ago, a little over 42,293 new and resale houses and condos were sold for the year. Orange County was listed as the 9th riskiest home lending market. Bernanke estimated that as many as 20 percent of all homeowners owed more on their homes than their homes were worth.

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The Norris Group Real Estate News Roundup 10/14/09

Wednesday, October 14th, 2009

Today’s News Synopsis:

Citigroup and other banks are being accountable for fraudulent loans which will cost them more than $688 million. The Mortgage Bankers Association reports that mortgage loan application volume has decreased by 1.8 percent from last week.  JP Morgan Chase has approved of trial modifications for 90 percent of its borrowers.

In The News:

DSNews – “Feds to Offer Easier Aid, Incentives for Modifications and Short Sales” (10-13-09)

“concerns have grown over whether HAMP reaches enough borrowers to make a difference in the wider housing-based economy. The MBA in particular, as well as the servicers’ advocacy group HOPE NOW, has argued that too many homeowners are – or ought to be – ineligible for HAMP modifications, and so far the government has done very little to assist that population.”

Bloomberg – “Citigroup Loans Ruled Fraudulent; Tousa Bonds Surge” (10-14-09)

“Citigroup Inc. and other lenders made fraudulent transfers when they gave Tousa Inc. secured loans six months before its bankruptcy filing, a judge ruled in a decision that may cost the banks more than $688 million. Tousa notes more than tripled.”

Housing Wire – “California Laws Get Tough on Mortgage Finance” (10-14-09)

“Senate Bill (SB) 36 regulates the licensing requirements for residential loan originators in compliance with the federal Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act. SB 237 requires appraisal management companies (AMCs) and appraisers register with the Office of Real Estate Appraisers and subjects appraisers to the provisions of the Real Estate Appraisers’ Licensing and Certification Law.”

Housing Wire – “JP Morgan Beats the Street, Earns $3.6bn” (10-14-09)

“JP Morgan Chase approved 262,000 new trial modifications between the Making Home Affordable Modification Program (HAMP) and its own modification program, resulting in lowered payments for 90% of borrowers with modified mortgages. In the bank’s retail financial services (RFS) division, net income was $7m, down from $57m in Q208 and $15m from Q209, due to a decrease in mortgage origination revenue, an increase in the provision for credit losses, higher non interest expense and lower loan balances, JP Morgan said.”

Housing Wire – “First American CoreLogic Creates National Fraud Database” (10-14-09)

“The National Fraud Database includes application and transaction data of more than 80m loan applications, representing 65% of all loan annual applications, aggregate fraud reports from 35 lenders and investors, with performance data history dating back to 2005.”

Mortgage Bankers Association – “MBA Releases Model Whole Loan Sale and Servicing Agreement” (10-14-09)

“The Mortgage Bankers Association (MBA) today adopted a model sale and servicing agreement it anticipates will become the standard form for industry participants to use voluntarily for whole loan purchases and sales made with an eye toward potential securitization. The Agreement was adopted yesterday by MBA’s Residential Board of Governors (RESBOG) as an MBA supported best practice.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (10-14-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 9, 2009. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.7 percent compared with the previous week.”

CNN – “Push on to expand $8,000 tax credit” (10-14-09)

“Congress is considering proposals to greatly expand a soon-to-expire $8,000 tax credit for first-time homebuyers — potentially applying it to all but the wealthiest homebuyers. Supporters say doing so would further boost home sales, stabilize housing prices and generate jobs. Opponents say extending and expanding the credit would be a waste of money and only temporarily stave off further price declines”

Bloomberg – “Bank of America to Target More Mortgage Share, Desoer Says” (10-14-09)

“Bank of America Corp., seeking to avoid a plunge in mortgage-lending profits in coming years as the business shrinks, will strive to expand its more than 20 percent market share, the head of the company’s home-loan unit said.”

Bloomberg – “GMAC’s Ally Bank Builds Deposits by Needling Rivals” (10-14-09)

“GMAC Inc., the lender that received two U.S. bailouts, has attracted $2.9 billion of new deposits and riled its rivals by offering the highest interest rates and running advertisements that portray bankers as deceptive.”

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