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Posts Tagged ‘International Monetary Fund’

The Norris Group Real Estate News Roundup 9/19/11

Monday, September 19th, 2011

Today’s News Synopsis:

Confidence in building new homes in the U.S. is at the lowest it has been in three months.  The International Monetary Fund released a recent study showing an increase in foreclosures and unemployment happening as a result of banks not having enough restrictions and tighter regulations on loans.  According to DS News, properties owned by the bank now total about 476,000, a decrease of about 17% from almost a year earlier.

In The News:

Housing Wire - “FHFA changes may boost private mortgage insurance” (9-19-11)

“The Obama administration fired several salvos at economic reform Monday, including details on changes to housing finance.”

DS News - “Banks’ REO Inventories Down by 17%” (9-19-11)

“Banks held about 476,000 homes that they repossessed from delinquent mortgage borrowers as of the end of July, according to Barclays Capital.”

Inman – “Real estate sales rebound in Salt Lake City” (9-19-11)

“The Salt Lake City metro area saw existing-home sales in July  surge 34.3 percent from a year ago — a sign that consumers are growing more  confident about the local economy. At the same time, pending sales jumped 37.6  percent year over year.”

Realty Times - “Real Estate Outlook: Poverty Rates Rising” (9-19-11)

“Federal Reserve Chairman Ben Bernanke spoke earlier this month about our economic outlook. He noted that the financial crisis we endured through 2008 and 2009 was far worse than anything we’ve seen since the Great Depression.”

O.C. Register - “40% of owners think home prices will drop” (9-19-11)

“Rasmussen Reports’ freshest hosuing survey shows that 40% of the 753 U.S. homeowners polled last week expect their home’s value to go down over the next year.”

Bloomberg - “Homebuilder Confidence in U.S. Declines to Three-Month Low” (9-19-11)

“Confidence among U.S. homebuilders fell to a three-month low in September as prospective buyer traffic, sales and purchase expectations declined.”

Los Angeles Times - “Treasury bond yields dive as market bets on new Fed buying plan” (9-19-11)

“Another slump in global stocks is helping to drive investors back to U.S. Treasury bonds, sending yields sharply lower again.”

CNN Money - “The newest threat to home prices” (9-19-11)

“The rancorous debate about how to address our escalating national debt has dominated the conversation in Washington lately. What isn’t getting much attention inside the Beltway — but should — is a looming event that could have major consequences not only for your home’s value but also for the overall economic recovery. Barring last-minute action by Congress, upscale housing is about to take another punch to the solar plexus — just as it’s struggling to stabilize.”

Housing Wire - “Foreclosure crisis shifts FICO scores” (9-19-11)

“FICO scores, which are used by financial institutions to determine creditworthiness, remained “relatively stable” between 2005 and 2011, according to Banking Analytics Blog.”

DS News - “Study Links ‘Lightly Regulated’ Lending to Foreclosures, Unemployment” (9-19-11)

“A recent study by Jihad C. Dagher and Ning Fu of the International Monetary Fund found a correlation between the increase in originations from “lightly regulated” non-bank lenders and the rise in foreclosures and unemployment.”

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 4/11/11

Monday, April 11th, 2011

Today’s News Synopsis:

RealtTrac reports military towns experienced an increased in foreclosure activity from 2008 to 2010. Congress agreed to a budget late Friday. Fannie Mae is creating more home ownership incentive by offering up to 3.5% in closing cost assistance. Federal Trade Commission settled with mortgage relief scammers Monday for $2.2 million in refunds to homeowners who were tricked into mortgage relief scams.

In The News:

Sacramento Bee – “Southern California’s military towns have taken a crushing blow in real estate collapse” (4-11-11)

“Foreclosures rose 32 percent in ZIP codes near military towns over the last three years, from 2008 to 2010, compared with 23 percent nationwide, said Rick Sharga, senior vice president of RealtyTrac in Irvine.”

Housing Wire - “Monday Morning Cup of Coffee” (4-11-11)

“With hours to spare Friday night, Congress agreed to a budget that would keep the government from shutting down for the first time since 1995.”

Housing Wire – “Fitch reports slowing subprime delinquencies, foreclosure sales” (4-11-11)

“The percentage of borrowers with mortgages classified as 30 or more days delinquent fell by 5.3% in March from February and the percentage of borrowers who are 60 days or more delinquent fell by 4.4%, according to a report composed by Fitch Solutions director David Austerweil.”

Daily Bulletin – “Casting a shadow: Housing market’s hidden inventory looms” (4-11-11)

“A nine-month supply of distressed homes in the U.S., about 1.8 million units as of January, are waiting to make their way onto the market, according to data released last week from Santa Ana-based CoreLogic.”

Housing Wire – “Fannie Mae offers help with closing costs on HomePath properties” (4-11-11)

“As the housing market continues to lag in sales, Fannie Mae is laying the groundwork to entice buyers by announcing it will offer up to 3.5% in closing cost assistance on Fannie Mae-owned HomePath properties. To qualify, the buyer’s initial offering on the HomePath property must be submitted on or after April 11 and the sale must close by June 30.”

My Budget 360 – “The housing gamble: What if home prices remained stagnant until 2020?” (4-11-11)

“Given the current domestic and global trends, it is likely that housing will be suffering another troubled decade from 2011 to 2020 just like it experienced from 2001 to 2010.”

Housing Wire – “FTC settles with mortgage relief scammers for $2.2 million” (4-11-11)

“The Federal Trade Commission settled with two companies and three individuals Monday to provide $2.2 million in refunds to homeowners allegedly duped into mortgage relief scams.”

Housing Wire – “Ellie Mae, CoreLogic join forces to please Fannie Mae” (4-11-11)

“A new feature through Ellie Mae’s Encompass360 loan origination platform designed by CoreLogic (CLGX: 17.92 -0.28%) aims to reduce repurchase risk on agency loans by assessing fraudulent information before a mortgage is originated.”

Bloomberg - “IMF Cuts U.S. Growth Forecast on Oil, ‘Lackluster’ Jobs Pace” (4-11-11)

“The International Monetary Fund lowered its forecast for U.S. growth this year, predicting higher oil prices and the pace of job gains will restrain the recovery. The world’s largest economy will expand 2.8 percent this year, down from the 3 percent projected in January, the IMF said today, citing the need to reduce deficits and boost exports.”

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 9/13/10

Monday, September 13th, 2010

Today’s News Synopsis:

Many predictions are being made regarding the economy and the housing market. Most of the articles have an overall positive outlook on the economy, while most had a negative outlook for the housing market. New delinquencies decreased 8.5% in August. The FDIC said 119 banks failed so far this year.

In The News:

CNBC - “No Double Dip, Stimulus Did Help: IMF Chief” (9-13-10)

“There is unlikely to be a double-dip recession, while the fact that stimulus spending was helpful in containing the crisis is undisputable, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), told CNBC Monday.”

Housing Wire – “Economist calls latest Basel 3 timeline ‘nonsense’” (9-13-10)

“The Basel Committee on Banking Supervision adopted new standards for the capital requirements of the world’s largest financial firms, mandating the banks hold capital equal to 7% of assets. As HousingWire reported in the Monday Morning Cup of Coffee, the committee increased the minimum common-equity requirement to 4.5% from 2% and stipulated banks hold a capital conservation buffer of 2.5% to withstand potential stress, raising the total common-equity requirement to 7%.”

Housing Wire – “Radian’s new delinquencies drop 8.5% in August” (9-13-10)

“Mortgage servicers reported 9,084 in new delinquent loans insured by Radian Group (RDN: 7.865 +3.49%), a mortgage insurer based in Philadelphia. It’s an 8.5% drop from the 9,930 of newly delinquent loans for Radian in July. Radian’s primary inventory of delinquent mortgages did fall to 137,374 in August, too, down from 138,015 delinquent mortgages in July.”

Housing Wire – “REITs outperform Barclays expectations, long term outlook positive” (9-13-10)

“Real estate investment trusts (REITs) outperformed analyst expectations in the first quarter of 2010, according to a weekly report released today by Barclays Capital. Week-over-week, the National Association of Realtors’ (NAR) composite REIT return index dropped 0.9% to 3,153.3. Despite the decrease, the index is 0.9% higher than one month ago and 33.7% higher than one year ago. The composite return index year-to-date is up 17.2% from 2,690.1 for the same period last year.”

Housing Wire – “JPMorgan analysts bearish on housing recovery” (9-13-10)

“JPMorgan Chase (JPM: 41.20 +3.62%) analysts lowered estimates for a recovery in the housing market between next year and 2014 because the expiration of the homebuyer tax credit slowed demand and overall economic malaise pushed some indicators lower in July.”

Housing Wire – “BofA’s Moynihan see 25% chance of double dip recession” (9-13-10)

“The discussion now is whether we might have a so-called double dip recession – although our experts think the chance of that is low… we’re now putting the chances of a double-dip at around 25%.”

Housing Wire – “Monday Morning Cup of Coffee” (9-13-10)

“At June 30, Horizon Bank had total assets of $187.8 million total deposits of $164.6 million. The FDIC said 119 bank have failed this year, including 23 in Florida. The FDIC recently said the number of banks on its “problem list” is at the highest level since 1993.”

Bloomberg - “U.S. Accelerates in 2011 as Demise of Consumer Is Exaggerated” (9-13-10)

“Debt payments as a share of disposable income fell to 12.46 percent in the first quarter from a peak of 13.96 percent in 2008 and are about in line with the 12.09 percent average of the last 30 years, based on Federal Reserve data. Berner sees the ratio falling to what he considers a sustainable range of 11 percent to 12 percent by year-end. This improvement will help the U.S. economy avoid a relapse into recession and put it on course for 3 percent growth next year, he said. The economy grew 1.6 percent in the second quarter.”

Bloomberg - “Fannie, Freddie Regulator Blames Mortgage-Loan Pools for Poor Performance” (9-13-10)

“Mortgage pools purchased as investments by Fannie Mae and Freddie Mac during the housing boom included more risky and poor-performing loans than those guaranteed by the government-backed firms, their regulator said. So-called private-label securities bought by the two firms from 2001 through 2008 had a bigger share of mortgages with adjustable interest rates and more borrowers with credit scores below 660, two indicators of loans at higher risk of default, the Federal Housing Finance Agency said in a report today.”

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 8/23/10

Monday, August 23rd, 2010

Today’s News Synopsis:

The CBIA reports 2,454 new homes and condominiums were closed statewide in June, compared to 3,848 a year earlier. A survey from Trulia shows that 68% of renters believe they will have to wait at least two years before even considering buying a home. According to HUD, 616,839 HAMP modifications have been canceled and 434,716 modifications have been made permanent since the program began. The Congressional Budget Office expects the Troubled Asset Relief Program to cost a total of $66bn.

In The News:

Daily Bulletin - “Uncertain times” (8-19-10)

“Norris said a larger number of expensive homes thrown into the mix of homes sold this year may be skewing the median price up, rather than an overall price increase in homes. Norris also said home affordability is ‘off the charts’ but it does not necessarily translate to a greater demand to buy homes. Because of the real estate crash, more people are afraid to go to the finish line with home purchases, he said.”

CBIA - “California New-Home Market Continues Struggle in June, CBIA Announces” (8-23-10)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that statewide new-home closings in June were off 36 percent from a year ago. During the month, 2,454 new homes and condominiums were closed across the state, compared to 3,848 a year earlier. Closings of single-family homes were down by 17 percent, while sales of townhomes were off by 57 percent and sales of condominiums were 67 percent lower than a year ago.”

Orange County Register – “Landlords pray for jobs” (8-21-10)

“I’m still concerned about future job growth and global market conditions that we don’t have control over. Unfortunately, our improvement is a condition of the housing and credit markets and reduced multifamily inventory, not significant job growth. Would-be home buyers who are no longer able to qualify to purchase a home, former home owners who lost their homes and new wage earners are sustaining our improved fundamentals. We will need consistent and sustainable job growth going forward.”

Orange County Register – “A good time to be a landlord?” (8-22-10)

“A new survey by Trulia.com shows that 1 in 4 renters say they’ll never purchase a home, and of those who will, 68% say it’ll take more than a couple of years to happen.”

Housing Wire – “Housing’s Second Leg Down” (8-23-10)

“Home prices have fallen 34% from their peak in the middle of 2006, according to Standard & Poor’s HPI data — but is that enough? Or is there further to go? How much further could we fall?”

Housing Wire – “HAMP Trial Cancelations Catching up to Permanent Modifications” (8-23-10)

“The Making Home Affordable Program (HAMP) initiated 1.3m trials as of July 2010, but is having difficulty retaining program participants through the process of making their modifications permanent. According to the July Servicer Performance Report released by the US Department of Housing and Urban Development (HUD), 616,839 modifications have been canceled while 434,716 modifications have been made permanent throughout the program’s lifetime.”

Housing Wire – “TARP Losses Recalculated to $66bn as GSE Outlook Improves” (8-23-10)

“The Congressional Budget Office (CBO) projected Friday the total cost of Troubled Asset Relief Program (TARP) over its lifetime would be $66bn. This is down from the $109bn lifetime cost projected in March. Outlays for Fannie Mae and Freddie Mac will fall from $96bn in 2009 to $41bn this year, the CBO estimates, mostly because the two entities are expected to recognize fewer losses on their mortgage investments and guarantees.”

Housing Wire – “Econoday Reports Swings in Housing Starts Due To Multifamily Volatility” (8-23-10)

“July housing starts rose 1.7% to 546,000 from June’s revised figure of 537,000, which is the lowest level since October. The June revision and volatility in the multifamily component led to the monthly gain, according to Mark Rogers, senior economist at the Calif.-based research firm.”

Housing Wire – “Monday Morning Cup of Coffee” (8-23-10)

“The Office of the Comptroller of the Currency (OCC) released Friday a list of Community Reinvestment Act (CRA) performance evaluations for 39 national banks and insured federal branches of foreign banks. Of the banks, nine received an outstanding rating, 30 received a satisfactory rating and none needed to improve. None were of substantial noncompliance.”

Housing Wire – “Strengthening CRE Market Pushes Defeasance Levels Up: Moody’s” (8-23-10)

“Moody’s said loans originally secured by multi-family properties saw the highest level of defeasance during the first six months, accounting for 46% of total defeasance. Retail properties represented 22% of all defeasance for the period with lodging properties at 17%. And 61% of all defeased loans during the period had two years or less remaining on the loan. Defeasance activity is when a borrower in a commercial real estate securitization substitutes some type of capital-generating collateral – often Treasury securities – in lieu of a hard payment.”

Bloomberg - “Bernanke Must Raise Benchmark Rate 2 Points, Rajan Says” (8-23-10)

“Raghuram Rajan accurately warned central bankers in 2005 of a potential financial crisis if banks lost confidence in each other. Now the International Monetary Fund’s former chief economist says the Federal Reserve should consider raising rates, even as almost 10 percent of the U.S. workforce remains unemployed.”

Bloomberg - “Housing Slide in U.S. Threatens to Drag Economy Into Recession” (8-23-10)

“‘If foreclosures continue to mount and depress home prices, that could send the economy back into a recession,’ said Celia Chen, an economist who tracks the industry for Moody’s Analytics Inc.”

Orange County Register – “‘How to torpedo your short sale’” (8-23-10)

“Many of the lenders won’t pay past due HOA dues, and the short sale can’t be closed without bringing the HOA dues current. If you can, keep your HOA dues current or plan to bring money to close to pay for them.  Sometimes the lender will pay them, sometimes the buyer will, and sometimes we need can succesfully negotiate the amount, but late HOA dues can torpedo a short sale on your Orange County home.”

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 7/8/10

Thursday, July 8th, 2010

Today’s News Synopsis:

According to Freddie Mac, the average 30-year fixed mortgage rate dropped to 4.57 percent. International Monetary Fund warns a double dip recession is still possible, despite its prediction that GDP will increase over the next year. Fitch Ratings predicts home improvement spending will increase 3.5% this year. Clear Capital reports national housing prices rose 5.2% during the last quarter.

In The News:

Associated Press - “Mortgage rates drop to new low of 4.57 pct.” (7-8-10)

“The average rate on a 30-year fixed mortgage dropped to 4.57 percent this week, mortgage company Freddie Mac reported Thursday. That’s down from the previous record low of 4.58 percent set last week.”

Housing Wire – “International Monetary Fund Warns of Housing Double-Dip Risk” (7-8-10)

“Signs of recovery in the US economy and housing market are stronger than expected, due to policy response from the federal government, according to the International Monetary Fund (IMF). While IMF expects US gross domestic product (GDP) growth of 3.25% in 2010 and 3% in 2011, unemployment is projected to remain above 9%.”

Housing Wire – “Fitch: Homebuyer Tax Credit Will Boost Home Improvement Spending” (7-8-10)

“Fitch Ratings expects home improvement spending to increase 3.5% in 2010 over 2009 levels, partly due to an influx of home sales incentivized by the first-time homebuyer tax credit”

Housing Wire – “Wells Fargo to Lay Off 3,800 Employees, Leave Non-Prime Space” (7-8-10)

“In a restructuring of its financial division, Wells Fargo (WFC: 26.64 -0.08%) said it will eliminate 2,800 positions in the next two months and another 1,000 people by the end of the year. The bank will close 638 financial stores in the US as it will stop originating non-prime portfolio mortgage loans.”

Housing Wire – “Fannie, Freddie Dropped from New York Stock Exchange” (7-8-10)

“The Federal Housing Finance Agency (FHFA) directed the government-sponsored enterprises (GSEs) in June to de-list from the NYSE and any other national securities exchange. The direction came after the price of their common stock hovered near the minimum average closing price of $1 for more than 30 days for most months since the conservatorship took effect in September 2008.”

Housing Wire – “House Prices Soar 8.8% from 2009: Clear Capital” (7-8-10)

“House prices rose in June across the US in both the rolling quarter and the previous-year data, according to real estate asset valuation data provider Clear Capital. National prices rose 5.2% over the previous three-month period and 8.8% since June 2009. The quarterly and yearly growth seen in June builds on already positive data, after prices climbed 6.8% in May from the year before.”

Housing Wire – “John Burns Sees Housing Market Hit Bottom with Little Downside to Investing” (7-8-10)

“The housing market has improved in the last two years to the extent that John Burns Real Estate Consulting sees the market as possibly approaching the beginning of its next up cycle.”

Bloomberg – “Apartment Vacancies in U.S. Drop From 30-Year High, Reis Says” (7-8-10)

“The vacancy rate for apartment properties was 7.8 percent, down from a 30-year high of 8 percent in the first quarter and up from 7.7 percent a year earlier, according to a report today by the real estate research firm. First-quarter vacancies were the highest since 1980, when Reis began tracking the data.”

Orange County Register – “O.C. builders rank among U.S. top 40″ (7-8-10)

“Seven homebuilding companies based in Orange County or having a strong presence here ranked in Builder Magazine’s newest list of the nation’s Top 100 Builders. Five of them were among the nation’s top 40 builders.”

Looking Back:

One year ago, 68 percent of recent home buyers said price decreases encouraged them to buy a house. PMI forecasted that home prices would decrease through 2011. Default rates doubled for commercial properties valued at more than $108 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 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 3/3/10

Wednesday, March 3rd, 2010

Today’s News Synopsis:

Bruce Norris estimated that lenders may lose up to $2.1 to 3.8 trillion before all the bad loans are taken off their books. According to the MBA, mortgage application volume increased from last week. The FHFA reports that Orange County home values increased by 6.38 percent in 2009. Last year, nearly 1,400 lawsuits were filed against lenders by homeowners in foreclosure.

In The News:

Press Enterprise – “Loan losses from home foreclosures could more than double” (3-3-10)

“Lenders who already have realized $1.5 trillion in losses due to home foreclosures could see their losses mount to an estimated $2.1 trillion to $3.8 trillion before all the bad loans are wiped off their books, a Riverside real estate expert told a gathering over the weekend. Bruce Norris, a real estate analyst, investor and principal of the Riverside-based Norris Group, told more than 400 real estate brokers and investors meeting in Costa Mesa Saturday that he had compiled these figures from data and estimates he obtained from ForeclosureRadar.com, Bloomberg Financial, Goldman Sachs, the International Monetary Fund, RGE Monitor and T2Partners.”

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

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 26, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 14.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 15.5 percent compared with the previous week.”

Orange County Register – “O.C.: Hottest U.S. housing market?” (3-3-10)

“Orange County home values — by one FHFA index that derives values from purchase records — rose 6.38% in 2009. That’s tops among the 25 major U.S. markets tracked by this methodology. Yes, O.C. is No. 1! We’re followed by Denver (+5.48%); Houston (+3.71%); and Pittsburgh (+3.26%).”

Sign On San Diego – “Hefty tax bill may hit those who lost home” (3-3-10)

“With less than six weeks before taxes are due, an estimated 16,000 former homeowners statewide will owe $15 million in extra income taxes this year and $29 million through 2012.”

Mercury News – “Increasing numbers of Californians are suing lenders to avoid foreclosures” (3-3-10)

“In the last five years, the number of foreclosure lawsuits filed in federal court in California has ballooned — like an exploding adjustable-rate mortgage — from only 29 statewide in 2005 to nearly 1,400 last year.”

Housing Wire – “Winter Weather Slows Residential Real Estate Growth: Beige Book” (3-3-10)

“In the January Beige Book, all but two Fed districts reported increased activity or improved conditions, with Philadelphia and Richmond seeing mixed results. Residential real estate markets remained weak or softened further in the New York, Atlanta, and Chicago districts and there was little change in the San Francisco district, the Federal Reserve Board said.”

Orange County Register – “Why loan mods & short sales take so long” (3-3-10)

“Hard to collect all necessary documents from borrower/owner. This may be because the banks never seem to receive the documents until they’ve been faxed in 5 or 6 times. It may be because it takes the borrower/owner or agent some time to respond to requests for documents.”

Inman - “90% of agents down on HAMP” (3-3-10)

“A mere 10 percent of real estate agents think the Obama administration’s Home Affordable Modification Program (HAMP) is reducing foreclosures in their market, according to a survey released Wednesday by real estate media and marketing provider Homes and Land. The company’s Market Pulse Survey Report asked more than 100,000 real estate agents nationwide to participate in a 10-question survey to gauge the state of housing in local markets. Nearly 5,800 agents responded; 51 percent had been a Realtor for more than 10 years. The company conducted the survey in February.”

Looking Back:

One year ago, Citigroup developed a plan which allowed unemployed homeowners to decrease their monthly payment to a minimum of $500. The NAR reported that home sales decreased by 7.7 percent within a month’s time. Bernanke claimed that the federal government needed to increase its fiscal involvement in the banking system. The government launched its $1 trillion TALF program.

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The Norris Group Real Estate News Roundup 10/2/09

Friday, October 2nd, 2009

Today’s News Synopsis:

Interthinx’s employment and income fraud index decreased  by 33 percent from Q2 of 2008 to Q2 of 2009. Real estate expert John Burns believes that the new short sale incentive program will be helpful in clearing up excess inventory. According to the American Bankruptcy Institute and National Bankruptcy Research Center,  U.S. consumer bankruptcies passed 1 million during the first 9 months of 2009. The U.S. government could lose nearly 80 percent of its $2.33 billion investment in CIT, should the company choose to exchange its debt.

In The News:

Housing Wire – “First American Studies Neighborhood Spread of Delinquency” (10-2-09)

“With the delinquency rates of prime and subprime mortgages trending upward across the nation, individual markets show different patterns of where those delinquencies gather within the city limits. A study by First American CoreLogic examines the spatial distribution of serious mortgage delinquencies across neighborhoods in the 30 largest US cities. Five patterns emerge from the data.”

Housing Wire – “Risk Retention May Backfire in Down Market, Says IMF” (10-2-09)

“The return of activity to private-label securitization markets will be a crucial part of economic recovery, but going forward, new measures must be put in place to ensure the markets positively contribute to financial stability and sustainable economic growth, according to the International Monetary Fund’s (IMF) Global Financial Stability Report.”

Housing Wire – “Mortgage Fraud Declines: Interthinx” (10-2-09)

“Mortgage fraud may be on the decline, according to the latest results of a quarterly index. Interthinx’s employment and income fraud index decreased 33% in Q209 from Q208, according to the latest Interthinx Mortgage Fraud Risk Report. Interthinx said the decline is due in part to lenders increased use of the Internal Revenue Service’s (IRS) 4506-T income verification form.”

Housing Wire – “$2,500 Incentive Will Spur Short Sales, Says John Burns” (10-2-09)

“A Treasury Department spokeswoman confirmed an incentive program for servicers that pursue short sales is on its way, according to John Burns Real Estate Consulting. The subsidy program will provide $1,000 to the servicer and $1,500 to the seller in each short sale transaction for a total incentive of $2,500 per short sale, the spokesperson told the consulting firm. This strategy should help ‘clear excess inventory,’ according to market commentary by John Burns Real Estate.”

Housing Wire – “2008 Mortgage Data Illustrates 31% Drop in Originations” (10-2-09)

“Mortgage lending data from 8,388 US financial institutions covered by the Home Mortgage Disclosure Act (HMDA) showed a decline in both lenders and originations in 2008 from levels seen in 2007. The data, released this week by the Federal Financial Institutions Examination Council (FFIEC), illustrate a 3% decrease in the number of reporting institutions and loans, primarily reflecting a large decline in the number of independent mortgage companies. Warehouse mortgage funding continued to dry up at the same time, a problem that led to the recently proposed legislation that aims to support and facilitate increased warehouse credit capacity for qualified lenders.”

Bloomberg – “U.S. Consumer Bankruptcies Top 1 Million, Group Says” (10-2-09)

“U.S. consumer bankruptcies rose past 1 million through the first nine months of the year, the highest since 2005 changes to bankruptcy laws. Personal bankruptcies totaled 1,046,449 for the period, according to the American Bankruptcy Institute and National Bankruptcy Research Center. For the first nine months of 2005, the figure was 1.35 million.”

Inman - “Turbulence seen for reverse mortgages” (10-2-09)

“A reverse mortgage, which is available only to those 62 and older, allows homeowners to use the equity that has built up in a residence. In effect, the homeowner gets a loan in the form of a lump sum or multiple payments. Repayment, with interest, is deferred until the owner dies, or goes into aged care, and the home is sold. Or, in a worst-case scenario, if the homeowner fails to pay property taxes or homeowners insurance.”

Reuters - “CIT debt swap could cost U.S. more than $1.8 billion” (10-2-09)

“If CIT Group (CIT.N) exchanges its debt under an offer aimed at averting a bankruptcy filing, the U.S. government could lose nearly 80 percent of its $2.33 billion investment in the troubled commercial lender. A likely $1.8 billion loss would be another black eye for the United States’ Troubled Asset Relief Program. A government official said last week that TARP has saved the financial system from collapse, but fell short of some of its other goals.”

Looking Back:

One year ago, the MBA reported that its Government Purchase Index decreased by 14.1 percent. Mark Finerman of Greenwich Capital began to raise 3 billion dollars for a fund to make senior property loans. A study from Radar Logic showed that home prices had dropped in 24 of 25 major metropolitan markets in the United States.

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