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California Real Estate Headline Roundup

Posts Tagged ‘IAS’

The Norris Group Real Estate News Roundup 2/8/11

Tuesday, February 8th, 2011

Today’s News Synopsis:

Fannie Mae and the MBA predict the housing market will begin a rebound that will last for the next two years, and Zandi predicts 4% gdp growth through 2012. IAS claims national home prices fell 0.8% during the 4th quarter of 2010.

In The News:

Bloomberg - “New-Home Recovery Seen in U.S. as Post-Super Bowl Selling Season Kicks Off” (2-8-11)

“The chief executive officers of six of the 10 largest U.S. homebuilders cited the potential of a sales comeback in the spring, traditionally their strongest season, during conference calls in the last four weeks. Housing forecasts from Fannie Mae and the Mortgage Bankers Association show the new-home market will begin a rebound that will last through at least 2012.”

Housing Wire – “Millions of homeowners still at risk as economy heats up: ASF panel” (2-8-11)

“Zandi expects GDP growth of close to 4% this year and in 2012. He also projects jobs growth in 2011 to more than double last year’s roughly 1.25 million new private sector jobs, climbing to about 2.5 million to 3 million. The unemployment rate should end 2011 south of 9%, dropping to lower than 8% by the end of 2012.”

Housing Wire – “Fed opens comment on Dodd-Frank regulation of nonbank firms” (2-8-11)

“The Federal Reserve Board has opened the public comment period on a proposed rule that, if implemented, would allow regulators to pull certain nonbank firms under the Fed’s regulatory scope by declaring them systemically important to the financial system.”

Housing Wire – “IAS: House price index drops in 4Q, despite gains in South” (2-8-11)

“Integrated Asset Services’ home price index fell 0.8% during the fourth quarter of 2010, compared to 3Q but gained 0.9% when compared to the year-ago quarter — a slight gain attributed mostly to the government’s homebuyer tax credit boost.”

Housing Wire – “Investors seen as key to stablizing housing market” (2-8-11)

“A panel at the American Securitization Forum in Orlando, Fla., said that the best buyers for distressed sales are housing investors, not owner-occupants. Further, the role of the former is seen as key to keeping the economy on track, they say.”

Housing Wire – “Dallas Fed CEO says he’ll dissent if quantitative easing returns” (2-8-11)

“Richard Fisher, CEO of the Federal Reserve Bank of Dallas, said he’s hard-pressed to imagine any type of scenario where he would vote for more quantitative easing by the Federal Open Market Committee.”

Housing Wire – “KBW finds meaningful decline in January mortgage prepayments” (2-8-11)

“Total prepayments for Fannie mortgage-backed securities dropped to a constant prepayment rate of 19.3% from more than 25% in December and 26% in November. The CPR is the ratio of mortgages prepaid in a certain time period. CPR for Freddie fell to 21.5% from 28.5% in December and 30.6% in November.”

Orange County Register – “Why lenders are wary of trusts” (2-8-11)

“many lenders will not fund into a trust. Typically if a lender will or will not do something it has something to do with either their ability to foreclose at a later date if need be, or cost. In the case of the living trust it is a case of both.”

Looking Back:

One year ago, the U.S. Treasury Department reported 66,465 permanent loan modifications over 8 months. Delinquencies on prime jumbo loans increased to 10 percent in one month. Distressed property sales increased in Dana Point and Laguna Beach. Unemployment in the U.S. construction industry increased to 24.7 percent in January.

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 4/13/10

Tuesday, April 13th, 2010

Today’s News Synopsis:

MDA DataQuick reports 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. Schwarzenegger signed a bill allowing taxpayers to be exempt from paying for forgiven mortgage debt. In 2008 and 2009, the income needed to buy a median-priced home decreased in 93 percent of U.S. markets. According to IAS, national house prices fell 0.6% in February.

In The News:

DQNews - “More Incremental Gains for Southland Real Estate Market” (4-13-10)

“A total of 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 33.3 percent from 15,359 in February, and up 5.0 percent from 19,506 in March 2009, according to MDA DataQuick of San Diego.”

Sacramento Bee – “California won’t tax forgiven home debt” (4-13-10)

“Gov. Arnold Schwarzenegger signed legislation Monday to spare thousands of Californians big tax bills on mortgage debt forgiven in 2009. The bill, signed days before Thursday’s tax filing deadline, will eliminate state taxes on forgiven mortgage debt from 2009 through the end of 2012. The U.S. government has already done the same.”

Los Angeles Times – “Washington Mutual created ‘mortgage time bomb,’ Senate panel says” (4-13-10)

“Before Washington Mutual collapsed in the largest bank failure in U.S. history, its executives knowingly created a ‘mortgage time bomb’ by making subprime loans they knew were likely to go bad and then packaging them into risky securities, a congressional investigation has found. In some cases, the bank took loans in which it had discovered fraudulent activity — such as misstated income by borrowers — and rolled them into mortgage securities sold to investors without disclosing the fraud, according to the report released Monday by the Senate’s Permanent Subcommittee on Investigations.”

Inman - “The workers homeownership left behind” (4-13-10)

“Between 2008 and 2009, the income needed to purchase a median-priced home fell in 93 percent of the markets studied, while the income needed fell a median of 9.1 percent, the study said.”

Housing Wire – “Top Four Banks Ready to Write-Down Second Liens” (4-13-10)

“In a hearing today before the House Financial Services Committee, representatives from Bank of America (BAC: 18.67 +0.05%), Citi (C: 4.62 -0.43%), JP Morgan Chase (JPM: 45.87 -0.59%) and Wells Fargo (WFC: 32.15 -0.83%) report that they do not feel efforts to satisfy second lien obligations represent a conflict of interest between the desires of investors and the needs of distressed borrowers. As a result, they are willing to write-down second liens if first lien lenders are doing the same. All four lenders are participants in the Second Lien Modification Program, known as 2MP, which is struggling to gain traction.”

Housing Wire – “Seven Months of House Price Declines Keep IAS Index Near 2004 Levels” (4-13-10)

“National house prices fell 0.6% in February, the seventh consecutive month of decline, keeping prices ‘only fractionally higher’ than levels seen in 2004, according to collateral valuation firm Integrated Asset Services (IAS). Although February’s decline is smaller than recent months — like 0.7% in December — the IAS house price index is now down 25% from its peak in July 2007.”

Housing Wire – “New Inspection Report Helps REO Holders Market Homes to FHA Borrowers” (4-13-10)

“Altisource Portfolio Solutions (ASPS: 25.61 -0.70%), a real estate portfolio services provider, introduced a new inspection report with increased data and repair information on subject properties. According to the company, while a traditional property inspection report outlines the general condition of a property, the new report includes information on the existence and condition of appliances, carpets or other flooring, and whether electrical systems are functioning.”

Bloomberg - “Mortgage-Bond Yields That Guide Loan Rates Fall to 3-Week Low” (4-13-10)

“Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds fell about 0.01 percentage point to 4.44 percent as of 3:02 p.m. in New York, according to data compiled by Bloomberg. That’s down from an eight-month high of 4.67 percent on April 5.”

Looking Back:

One year ago, distressed properties represented 25 percent of U.S. home sales. Jeff Greene confessed to his 2006 investment estimation that money could be quickly made by buying credit default swaps on mortgage backed securities. Experts warned that FHA loans would be the next biggest risk in the U.S. housing market.

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

Tuesday, February 9th, 2010

Today’s News Synopsis:

Altera Real Estate foresees significant improvement in the Orange County real estate market. According to IAS, national home prices have returned to 2004 levels. Forecasters from iEmergent expect approximately $580 billion in mortgage refinancing during 2010.

In The News:

Orange County Register – “Housing market warming along south coast?” (2-9-10)

“Steven Thomas of Altera Real Estate claims in his latest biweekly report that this is the strongest demand has looked in Orange County’s real estate market since 2005.”

Housing Wire – “Pulte Posts Loss Despite $917m Tax Refund” (2-9-10)

“Pulte Homes (PHM: 11.08 -0.45%) posted a net loss of $117m, $0.31 per share, in Q409, even though it will receive a $917m tax refund later this year. The Michigan-based homebuilder said $800m of the tax refund comes from the extension of the net operating loss (NOL) carryback allowance”

Housing Wire – “New Program Rewards Current Mortgage Borrowers” (2-9-10)

“if a borrower has a $200,000 mortgage and the value dropped to $150,000, a bank using the RH Reward program could give a $25,000 incentive to the borrower if the borrower remains current. How that reward is monetized depends on the borrower.”

Housing Wire – “December Drop Brings IAS Index Back to 2004 Levels” (2-9-10)

“The index is a county-level measure of median sales price of single-family residences in five US Census Bureau regions, nine Census divisions and 360 counties. After five months of declines, the index is now 5.3% below its 2008 level. In 2008, the index declined 11.7% from its 2007 level. The index is now at a level last seen in mid-2004, IAS said.”

Housing Wire – “Mortgage Financing Poised to Drop in 2010: iEmergent” (2-9-10)

“Mortgage volumes in 2010 will not reach the same levels as 2009 as the slide toward the collapse-curve bottom continues, according to iEmergent, the market research and advisory firm for the financial services industry. The firm projects the purchase-to-refinancing ratio will reach a 49% to 51% split in 2010. Forecasters predict between $531bn and $643bn in refinancing volume in 2010. Refinance volumes will be less than half of 2009 levels, and lenders relying on those transactions in 2009 will be at a great risk in 2010, according to the report.”

Wall Street Journal – “No Exit in Sight for U.S. As Fannie, Freddie Flail” (2-9-10)

“Nearly a year and a half after the outbreak of the global economic crisis, many of the problems that contributed to it haven’t yet been tamed. The U.S. has no system in place to tackle a failure of its largest financial institutions. Derivatives contracts of the kind that crippled American International Group Inc. still trade in the shadows. And investors remain heavily reliant on the same credit-ratings firms that gave AAA ratings to lousy mortgage securities.”

Looking Back:

One year ago, two thirds of Americans expressed support for the $15,000 first time home buyer program, which the senate was considering. The MBA expected $171 billion in mortgages to mature in 2009. A government official announced plans to buy troubled assets.

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The Norris Group Real Estate News Roundup 1/12/10

Tuesday, January 12th, 2010

Today’s News Synopsis:

The Federal Reserve made $46.1 billion last year. The MBA predicts that mortgage originations will decline by 39 percent in 2010. According to Integrated Asset Services, national home prices fell by 0.3 percent in November of 2009. FHA reports 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.

In The News:

Los Angeles Times – “Fed’s reaction to crisis helps deliver record $46.1-billion profit” (1-12-10)

“The Federal Reserve today announced it made a record $46.1-billion profit last year, countering concerns that the central bank has put too much taxpayer money at risk in attempts to stabilize the financial industry.”

Housing Wire – “MBA Expects Mortgage Originations to Fall 40% in 2010″ (1-12-10)

“The mortgage finance industry will likely see a continued slow-down in 2010 as unemployment remains high and home sales slide, the Mortgage Bankers Association (MBA) said Tuesday at a media briefing over the state of the real estate industry. The MBA projected total mortgage origination on residential one- to four-family properties is likely to plummet to $1.28trn in all of 2010, from $2.11trn in all of 2009. The projection marks a 39% decline in total mortgage origination in 2010.”

Housing Wire – “MetLife to Provide Reverse Mortgage Program for ABA Banks” (1-12-10)

“The American Bankers Association (ABA) partnered with MetLife Home Loans to provide member banks a reverse mortgage program. Banks provide reverse mortgages to let homeowners convert their home into cash and can allow older borrowers to supplement social security, meet medical expenses and make home improvements.”

Housing Wire – “Tax Refund Gives KB Homes $100m Q4 Profit” (1-12-10)

“A tax return from profits earned during the housing bubble put KB Home (KBH: 15.72 -4.03%) in positive net profit territory in its fiscal year Q409 that ended Nov. 30. Excluding a $191.7m tax refund, KB Home would have lost $91m in the quarter, but instead posted a $100.7m, or $1.31 per share, net profit. With or without the tax refund, the quarter’s results are better than the $307.3m loss in Q408.”

Housing Wire – “IAS Price Index Dips on Declines in Northeast, Midwest” (1-12-10)

“The Integrated Asset Services (IAS) index of national house shows prices fell 0.3% in November, the collateral valuation and management services firm said. That’s better than the 0.5% decline in prices the index experienced in October and the 0.6% decrease in September.”

Housing Wire – “Sellers Cut Listing Prices on 21% of Homes: Trulia” (1-12-10)

“As of Jan. 1, 2010, sellers cut listing prices on 21% of homes currently on the US market, according to the real estate site, Trulia.com.”

Bloomberg - “U.S. Subpoenas 15 FHA Lenders With High Mortgage Defaults” (1-12-10)

“The U.S. Housing and Urban Development Department said it subpoenaed 15 mortgage companies today to seek out possible fraud in an effort to stem losses on loans insured by the Federal Housing Administration. HUD officials, who oversee the FHA mortgage insurance program, said they haven’t haven’t found any evidence of wrongdoing at the lenders, and were singling out those with the highest default rates.”

Bloomberg - “Life Insurers to Sidestep CMBS Losses, Barclays Says” (1-12-10)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., will sidestep losses on investments tied to commercial mortgages, said Eric Berg, an analyst with Barclays Plc. ”

Bloomberg - “PMI Drops After Goldman Sachs Sell Recommendation” (1-12-10)

“PMI Group Inc., the third-largest U.S. mortgage insurer, fell the most in five months after a Goldman Sachs Group Inc. analyst said he expects more losses as foreclosures increase.”

Inman - “More loans going bad, but more get help” (1-12-10)

“More homeowners fell behind on their payments during the third quarter of 2009, but fewer were funneled into the foreclosure process as loan servicers engaged in more loan workouts, modifications and short sales, according to a new report. Foreclosure starts on loans guaranteed by Fannie Mae and Freddie Mac fell 15 percent from the second quarter to the third quarter, the Federal Housing Finance Agency said in its quarterly Foreclosure Prevention and Refinance Report.”

Orange County Register – “Housing market warming up in south coast?” (1-12-10)

“In a typically slow quarter for real estate, all three south coast cities saw their expected market time speed up a bit, according to a biweekly report by Steven Thomas of Altera Real Estate. Two weeks ago, it would have taken an expected 6.86 months to sell all of Dana Point’s active home stock, which has sped up slightly to an expected 5.16 months.”

Looking Back:

One year ago, some economists estimated that the Modesto, Stockton, Bakersfield, Riverside and Sacramento housing markets would take the longest to recover. President Bush requested the remaining $350 billion of the financial rescue, and handed his economic authority to Barack Obama. Distressed home sales in Orange County decreased by 7.2 percent.

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The Norris Group Real Estate News Roundup 12/08/09

Tuesday, December 8th, 2009

Today’s News Synopsis:

Chase Home Finance reports that 29 percent of its HAMP trial plans failed to become permanent. Research from Altos Research shows that home prices decreased in 24 of the 25 markets that the company observes. A credit analysis of 27 million consumers lead TransUnion to estimate that delinquencies of 60 days or more will drop 3 percent by the end of 2010.

In The News:

Housing Wire – “HAMP Must Address Second Liens, Congress Hears” (12-8-09)

“Mortgage servicing firms make money off servicing fees, which are based on the principal amount — a disincentive for reducing principal, Goodman said. Servicers are often owned by large financial institutions that hold second liens. If principal reduction is left up to the banks’ discretion, she said, the conflicting financial interests will likely restrict principal reduction, she said.”

Housing Wire – “Chase Converts 2% of Offered HAMP Trials into Permanency” (12-8-09)

“For every 100 HAMP trial plans initiated by Chase Home Finance from April to through September, 29 borrowers did not make the required payments and failed to reach a permanent status, according to testimony from Molly Sheehan, senior vice president at Chase Home Finance.”

Housing Wire - “List Prices Declined in 25 of 26 Markets: Altos Research Index” (12-8-09)

“The Altos Research 10-city index of home listing prices decreased 0.4% from October to November, and prices fell in 25 of the 26 major markets the Mountain View, Calif.-based real estate market research firm tracks.”

Housing Wire – “Prices Up For Second Straight Quarter in Freddie Index” (12-8-09)

“Home prices increased for the second straight quarter in Freddie Mac’s (FRE: 1.11 +2.78%) Conventional Mortgage Home Price Index (CMHPI). The purchase-only index increased 0.9% from Q209 to Q309, following a 2% increase from Q109 to Q209. The two quarters of increases are equal to about 40% of the declines experienced in Q408 and Q109. For the 12-month period ending in Q309, home sales prices were down 3.9%.”

Housing Wire – “Mortgage Delinquencies to Decrease in 2010: TransUnion” (12-8-09)

“Based on credit performance of 27m consumers, national credit bureau TransUnion projects mortgage delinquencies of 60 or more days to drop nearly 3% by year-end 2010 to 6.39%, from an expected 6.56% at year-end 2009.”

Housing Wire – “House Prices Lose 0.5% in October, IAS Says” (12-8-09)

“House prices continued to decline in October, falling 0.5% across the US, according to the latest data compiled by default management and residential collateral valuation service provider Integrated Asset Services (IAS). The Northeast and Midwest census regions both slipped (1.6% and 0.3% respectively) and the South and West regions gained a respective 1.1% and 0.5%.”

Bloomberg – “Calpers Real-Estate Holdings Decline 30% During First Quarter“ (12-8-09)

“The California Public Employees’ Retirement System, the largest state-run U.S. public pension, saw the value of first-quarter real estate holdings decline 30 percent and is terminating contracts with some investment firms behind the loss, a consultant for the fund said.”

Bloomberg – “Citigroup Said to Push for Bailout-Payback Agreement This Week” (12-8-09)

“Citigroup Inc. Chief Executive Officer Vikram Pandit is pressing the U.S. Treasury Department and regulators to agree as soon as this week on a plan to pay back $20 billion remaining from a government bailout, people familiar with the matter said.”

Inman - “SEC charges former New Century execs” (12-8-09)

“Three former executives of New Century Financial Corp. — one of the most prominent subprime lenders during the housing boom — have been charged with securities fraud for allegedly misleading investors.”

Orange County Register – “Will new appraisal rules hurt FHA borrowers?” (12-8-09)

“On January 1, 2010 FHA will require the Home Valuation Code of Conduct (HVCC) process for all appraisals, falling in line with Fannie Mae and Freddie Mac. For a multitude of reasons this will be tremendously negative for the market, for buyers and for sellers.  It will further depress property values, it will hinder sellers ability to get open offers and most importantly it will prohibit many FHA buyers from even having their offers looked at by sellers in multiple offer situations-even if they have higher offers.”

Looking Back:

One year ago, data from the 14 largest banks revealed that 53 percent of borrowers with modified mortgages were more than 30 days late on their payments after six months.  Statistics from DataQuick showed that Orange County home prices declined by 18 percent from 2007 to 2008. Delinquency rates for mortgage loans rose to 3.96 percent.

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The Norris Group Real Estate News Roundup 10/13/09

Tuesday, October 13th, 2009

Today’s News Synopsis:

Fitch reports that 60 percent of borrowers from 06 to 07 have negative equity and owe more than their homes are worth. Interthinx’s Mortgage Fraud Index estimates that fraud decreased by 4 percent from Q1 to Q2 of 2009, but increased by 7 percent from Q2 of 2008. Statistics from MDA DataQuick show that Southern California home sales increased by 5 percent from October of 2008.

In The News:

Housing Wire – “Fitch Sees 60% of Current RMBS Borrowers Underwater” (10-13-09)

“The majority — 60% — of remaining performing borrowers within ‘06- and ‘07-vintage residential mortgage-backed securities (RMBS) bear negative home equity, meaning they are underwater on their mortgages and owe more than their houses are worth”

Housing Wire – “Treasury to Announce New Program to Avoid Foreclosure” (10-13-09)

“HAFA already holds the support of Fannie, according to a VP at the agency, Eric Schuppenhauer, who believes the new program allows borrowers in imminent default to ‘make a graceful exit’ from their home. HAFA will keep the stigma associated with foreclosure away from the borrowers, he added, and help keep communities intact.”

Housing Wire – “Interthinx Fraud Report Links Mortgage Fraud, Foreclosure: DBRS” (10-13-09)

“Interthinx’s Mortgage Fraud Index calculates fraud risk based on the frequency of mortgage fraud activity detected in applications processed by Interthinx’s FraudGUARD system. The Q209 Fraud Index dropped 4% from Q109 but jumped 7% from the year before, according to the report.”

Housing Wire – “House Prices Decline 0.2% in August: IAS” (10-13-09)

“House prices declined 0.2% from July to August, the second month of declines after a fourth-month-long rally that brought a 2.8% increase earlier this year, reported Integrated Asset Services (IAS). The last time national home prices were at the August 2009 level was in February 2005, and prices in August this year were 8% lower than the prices in August 2008, the default management and residential collateral valuation service provider said.”

DQNews – “Southern California home sales inch up; median price steady” (10-13-09)

“Last month 21,539 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 0.2 percent from 21,502 in August and up 5.1 percent from 20,497 a year earlier, according to MDA DataQuick of San Diego.”

Bloomberg – “JPMorgan Pitches Interest-Only Mortgages to Boost Obama Plan” (10-13-09)

“Banks will push the Obama administration to expand its mortgage-modification program to allow interest-only periods on reworked loans, seeking to bring more homeowners into the initiative while recognizing concern that it may only postpone defaults, according to JPMorgan Chase & Co.”

Reuters – “BofA, Chase executives say US housing still fragile” (10-13-09)

“Executives from two of the United States’ biggest home mortgage lenders said the nation’s housing market is still in a tenuous state despite signs of stability over the summer months.”

Inman – “First American offers free market reports” (10-13-09)

“First American CoreLogic has launched a new service, ePropertyWatch, that provides homeowners with e-mail updates on their property value, recent sales, price trends and foreclosure activity in their neighborhood.”

Inman – “Economists mixed on California’s outlook” (10-13-09)

“Drastic cutbacks in new-home construction have helped reduce inventories of homes for sale in California faster than expected, and falling home prices and low interest rates are making owning look like a better deal than renting for many, according to Richard Green, director of the Lusk Center for Real Estate at the University of Southern California.”

Inman – “Fewer sellers slash asking price” (10-13-09)

“Fewer sellers were willing to reduce their home’s asking price in September than they were a year ago, but 44 percent of listings in 28 markets tracked by ZipRealty had seen at least one price reduction, the company said in releasing the results of a monthly survey on price reductions.”

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