The Norris Group Blog

California Real Estate Headline Roundup

Posts Tagged ‘Janet Yellen’

The Norris Group Real Estate News Roundup 9/30/10

Thursday, September 30th, 2010

Today’s News Synopsis:

The loan limit guaranteed by Fannie Mae, Freddie Mac and the Federal Housing Administration will stay at the current level until the end of 2011. The average rate for 30-year fixed loans fell to 4.32 percent, according to Freddie Mac. The Labor Department’s weekly survey shows jobless claims fell 3.5%. RealtyTrac reports foreclosure sales increased 4.9% in the 2nd quarter.

In The News:

Mortgage Bankers Association – “Commercial/Multifamily Real Estate Fundamentals Show Firmer Stabilization in Second Quarter 2010″ (9-30-10)

“The Mortgage Bankers Association (MBA) today released its Commercial Real Estate/Multifamily Finance Quarterly DataBook for the second quarter of 2010. The analysis shows that commercial real estate fundamentals are showing signs of a firmer stabilization as businesses eased job cuts and started to hire, consumers began to re-open their pocketbooks and as households increasingly looked to rent rather than own their homes.”

Mercury News – “Mortgages: Congress holds conforming loan limits at nearly $730,000″ (9-30-10)

“Congress has extended a policy that allows homeowners in pricey real estate markets to secure government-backed mortgages of nearly $730,000. Lawmakers have voted to keep the maximum size of loans guaranteed by Fannie Mae and Freddie Mac and the Federal Housing Administration at the current level through the end of 2011.”

Mortgage Bankers Association – “MBA Commends Extension of Loan Limits and Increase in FHA Multifamily Commitment Authority” (9-30-10)

“Extending the existing limits is essential to helping borrowers continue to have access to affordable long-term, fixed-rate mortgage credit in today’s struggling economy.  The current limits have been a key component of keeping the mortgage market functioning, helping keep mortgage interest rates low for consumers who want to purchase a home or refinance an existing mortgage.”

San Francisco Chronicle – “Mortgage rates match low of 4.32 percent” (9-30-10)

“Mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans fell to 4.32 percent, the lowest on records dating back to 1971. That’s down from 4.37 percent the previous week and equal to the average rate reached four weeks ago.”

Los Angeles Times – “Prices rise for homes in foreclosure or sold by banks” (9-30-10)

“In the second quarter, 248,534 U.S. properties were sold by banks or by owners who had fallen into foreclosure, RealtyTrac of Irvine said. That was an increase of 4.9% from the previous quarter, but a 20.1% decline from the same quarter last year, when discounted bank-owned homes flooded the market.”

Housing Wire – “Weekly jobless claims down 3.5%” (9-30-10)

“Initial jobless claims fell 3.5% last week to 453,000, which is at the level last seen at the beginning of the month and lower than most analysts’ estimates. The Labor Department said the unadjusted figure of actual initial claims for the week ended Sept. 25 decreased by 16,000 from the previous week’s revised figure of 469,000.”

Housing Wire – “GDP growth softens to 1.7% in 2Q” (9-30-10)

“The U.S. real gross domestic product, which is the output of goods and services by labor and property, increased at an annual rate of 1.7% in the second quarter, according to the third estimate from the Commerce Department.”

Housing Wire – “Senate confirms Yellen as Fed vice chairman” (9-30-10)

“Janet Yellen is the new vice chairman of the Federal Reserve board, as the Senate unanimously confirmed her appointment Wednesday.”

Bloomberg - “JPMorgan Asks Judges to Delay Rulings as It Reviews Foreclosure Documents” (9-30-10)

“JPMorgan Chase & Co., the third- biggest U.S. mortgage servicer, said it’s asking courts to delay judgments in pending foreclosure cases while the bank reviews and possibly resubmits statements. JPMorgan began to ‘systematically re-examine’ foreclosure filings after learning that employees may have signed affidavits without personally reviewing underlying records, relying instead on other personnel”

Looking Back:

One year ago, Experian and Wyman estimated that the number of strategic defaults in 2008 were up to 600,000. Senators were supporting legislation to lend 200 million dollars for the prosecution of mortgage and real estate fraud cases.  The MBA reported that the mortgage loan application volume decreased by 2.8 percent on a seasonally adjusted basis. Freddie Mac announced that it would work with Titanium Solutions to do door-to-door loan modifications.

Tags: , , , , , , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 4/30/10

Friday, April 30th, 2010

Today’s News Synopsis:

MetLife is expecting a comeback in the commercial real estate market. According to LPS, More than 7.3m mortgages in the US are non-current or in REO status this month. Orange County apartment rent rates fell 5 percent during the first quarter of 2010. President Obama nominated Janet Yellen, Peter Diamond and Sarah Bloom Raskin for the Federal Reserve Board of Governors to the US Senate.

In The News:

Bloomberg - “D.R. Horton Gains After Quarterly Profit Tops Analyst Estimates” (4-30-10)

“D.R. Horton Inc., the second-largest U.S. homebuilder by revenue, climbed the most in three months after reporting its second straight quarterly profit on increased demand for houses. Net income was $11.4 million, or 4 cents a share, for the quarter ended March 31, compared with a loss of $108.6 million, or 34 cents, a year earlier, the Fort Worth, Texas-based company said today in a statement. The results beat the average of 11 estimates in a Bloomberg survey that showed analysts predicted the company would roughly break even.”

Bloomberg - “MetLife Expects Commercial Real Estate to Rebound” (4-30-10)

“MetLife Inc., the largest U.S. life insurer, said there are signs of a recovery in the commercial real estate market after property values dropped about 40 percent from their peak. The company gained the most in seven weeks in New York trading.”

Housing Wire – “Obama Nominates Three to Federal Reserve Board of Governors” (4-30-10)

“President Barack Obama on Thursday sent three nominations for the Federal Reserve Board of Governors to the US Senate. His nominees include Janet Yellen, president of the Federal Reserve Bank of San Francisco; Peter Diamond, an institute professor at the Massachusetts Institute of Technology (MIT); and Sarah Bloom Raskin, commissioner of financial regulation for the State of Maryland.”

Housing Wire – “Geithner Threatens Crack-Down on HAMP Servicers” (4-30-10)

“‘I want to be clear that we do not believe servicers are doing enough to help homeowners, not doing enough to help them navigate the difficult and often frightening process of avoiding foreclosure,’ he said in prepared remarks.”

Housing Wire - “Non-Current Mortgages, REO Reach 7.3m in March: LPS” (4-30-10)

“More than 7.3m mortgages in the US are non-current or in REO status through March 2010, according to the Lender Processing Services (LPS) (LPS: 38.065 -0.41%) Mortgage Monitor report. Data and analytics firm LPS reported the modest improvements in the amount of loans becoming current has been overshadowed by this large pool of non-current assets, which represent more than 12% of all active loans in the country. The volume of distressed mortgages is up 19.3% from a year ago.”

Orange County Register – “O.C. apartment rent down 5%” (4-30-10)

“The average rent for a unit in a large Orange County apartment complex fell 4.8 percent during the first quarter of the year, down to $1,475 a month, according to RealFacts. However, the average asking rent pulled out of its nose dive, rising $2 a month from the previous quarter. Rents had fallen steadily for the previous 15 months.”

Orange County Register – “County seeks fee for property tax appeals” (4-30-10)

“An Orange County administrator wants to impose a $30 per parcel fee on property tax appeals this summer to help offset the costs of administering the hearings and to discourage fraudulent and frivolous actions. The proposal was made by Darlene Bloom, clerk of the Board of Supervisors, whose office administers appeals of property tax assessments.”

Realty Times – “Seniors Looking to Downsize, Seek Opportunities to Socialize in Urban Living Areas” (4-30-10)

“there’s a changing mindset emerging. ‘Senior citizens no longer want to be in an isolated place.’ Many are selling their homes and looking for a community connection in the location where they plan to purchase their next home. ‘Like the rest of America, there was this movement going out toward suburbia. Now, there’s a movement going back toward more urban areas and towns are starting to be challenged,’ says Matthews.”

Looking Back:

One year ago, foreclosure filings increased dramatically during March. The U.S. Senate rejected legislation letting U.S. bankruptcy judges cut mortgage terms to help borrowers avoid foreclosure. The average rate of a 30-year mortgage dropped to 4.78 percent.

Tags: , , , , , , , , , , , , , , , , , , , , , ,
Posted in News | 1 Comment »

The Norris Group Real Estate News Roundup 3/26/10

Friday, March 26th, 2010

Today’s News Synopsis:

The Obama administration announced a new program for homeowners in foreclosure. The Fed bought a total $8.26bn of MBS from Fannie Mae, Freddie Mac, and Ginnie Mae. Freddie Mac reports the 30-year FRM rate increased to 4.99 percent this week.

In The News:

New York Times – “Under Pressure on Foreclosures, White House Pledges Aid” (3-26-10)

“The Obama administration on Friday announced broad new initiatives to help troubled homeowners, potentially refinancing millions of them into fresh government-backed mortgages with lower payments. Another element of the program is meant to temporarily reduce the payments of borrowers who are unemployed. Additionally, the government will encourage lenders to write down the value of loans held by borrowers in modification programs to make their mortgages more affordable.”

Housing Wire - “The Commercial Real Estate Pretend and Extend Strategy Continues” (3-26-10)

“In a speech on the Federal Reserve exit strategy to the House of Representatives Committee on Financial Services, chairman Ben Bernanke noted that the government-led credit provision, the Term Asset-Backed Securities Loan Facility (TALF) is reaching its end this month. The exception to this deadline, however is newly issued commercial mortgage-backed securities (CMBS), and loans backed by newly issued CMBS. These will get an extra three months.”

Housing Wire – “FHA Mortgage Workout Lacks Incentives and Creates Problems: Industry Sources” (3-26-10)

“Under the terms of the voluntary program, lenders will be required to write down at least 10% of the mortgage principal for borrowers who are current on their payments. The program is open to borrowers whose mortgage isn’t currently insured by the FHA. The principal reduction must bring the new FHA loan to value (LTV) to 97.75% and make the new payments account for 31% of the borrower’s monthly income. The program also offers incentives to lenders who offer borrowers with second lien mortgages similar principal reduction and refinance options. The maximum allowed LTV of the combined loans is 115%.”

Housing Wire – “Fed MBS Purchases 99.5% Complete With Another $8bn” (3-26-10)

“The Fed bought a total $8.26bn of MBS this week — $3.6bn of Freddie Mac (FRE: 1.32 +2.33%) MBS, $4.1bn of Fannie Mae (FNM: 1.06 0.00%) MBS and $560m of Ginnie Mae MBS. The Fed also reported $260m of MBS sales in the same week, bringing net purchases to $8bn.”

Bloomberg - “Greenspan Takes Issue With Yellen on Fed’s Role in House Bubble” (3-26-10)

“Alan Greenspan disputed suggestions by his former central bank colleague and current San Francisco Federal Reserve Bank President Janet Yellen that the Fed could have headed off the housing bubble by raising interest rates.”

Bloomberg - “What happens when Fed pulls the plug” (3-26-10)

“In an odd leap, long-term Treasury yields blew up, and Wednesday was the worst single day in nine months. The 10-year Treasury note stopped at 3.88 percent, a level touched for the fifth time since last June, but the violence of this move threatens upward breakout. Meanwhile, mortgages held fairly well, inside the 5.25 percent top that has held since August. The peculiar part: Big sell-offs like this are driven by good economic news, but that’s not what we got. February sales of new and existing homes fell (new ones at the lowest pace since stats began in 1963, 303,000 annualized), and unsold inventory rose.”

Orange County Register – “How to avoid a bad contractor” (3-26-10)

“Unlicensed contractors can underbid their licensed counterparts because they often don’t pay worker’s compensation. That, according to the board, means homeowners could be liable if there is an accident. There are also fewer options for homeowners who get stuck with shoddy work.”

Realty Times – “Mortgage Rates Inch up Following Bond Yields” (3-26-10)

“Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.99 percent with an average 0.6 point for the week ending March 25, 2010, up slightly from last week when it averaged 4.96 percent. Last year at this time, the 30-year FRM averaged 4.85 percent.”

Looking Back:

One year ago, the 30-year FRM rate was at 4.85 percent. The number of pulled housing permits decreased by 50 percent from 2008 to 2009. The U.S. economy shrank 6.3 percent during the 4th quarter of 2008.

Tags: , , , , , , , , , , , , , ,
Posted in News | No Comments »

The Norris Group Real Estate News Roundup 2/22/10

Monday, February 22nd, 2010

Today’s News Synopsis:

Moody’s reports that commercial property prices increased by 4.1 percent in December. A survey shows that 87 percent of homebuilders expect to lose money due to the new FHA guidelines. According to Campbell Surveys, short sales accounted for 15.9% of home purchases in January. Janet Yellen predicts that the U.S. economy will perform below potential throughout this year and the next.

In The News:

Los Angeles Times – “IRS issues new guidelines on obtaining home buyer tax credits” (2-21-10)

“Despite blizzards that shut federal offices for days, the Internal Revenue Service issued new guidance Feb. 12 on the two tax credit programs that are powering the country’s real estate markets — the $6,500 credit for repeat buyers and the $8,000 first-time buyer credit. The new IRS policy clarified documentation that taxpayers need to submit to successfully obtain either credit. When Congress revised the credit programs in November, it ordered the IRS to tighten its rules and monitoring to curtail widespread frauds that had emerged earlier in 2009.”

Sacramento Bee – “Schwarzenegger proclaims `the worst is over’ for California” (2-21-10)

“Despite the state’s high unemployment rate, California’s economy is making a slow comeback and ‘the worst is over,’ Gov. Arnold Schwarzenegger said today.”

Housing Wire – “Commercial Real Estate Prices Up as Foreclosures Threaten Recovery” (2-22-10)

“US commercial real estate prices as measured by Moody’s Investors Service/Real Estate Analytics, Commercial Property Price Indices (CPPI) increased for the second month in a row in December, rising 4.1%, as the commercial real estate (CRE) market continues to face several challenges, such as the rising tide of defaults and subsequent foreclosures.”

Housing Wire – “Homebuilders Expect FHA Changes to Hurt Sales” (2-22-10)

“However, 87% of builders surveyed said they expect to lose sales due to new FHA guidelines. Half of the builders surveyed expect to lose 10% or more of sales. As HousingWire reported in January, the FHA raised insurance fees and down payments for borrowers with lower credit scores to address the FHA’s capital reserve ratio, which fell below the Congressionally mandated 2% threshold. Borrowers with a FICO score of less than 580 are now required to make a 10% down payment, up from the previous 3.5% down payment. In addition, seller concessions have been cut in half to 3%, from 6% and mortgage insurance fee at closing increased from 175 bps to 226 bps.”

Housing Wire – “Governors See Bad Economic Times Getting Worse for States” (2-22-10)

“General fund spending among the states dropped 3.4% in 2009 and 5.4% in 2010, based on enacted budgets. The only other annual decline in state spending occurred in 1983, when it dropped 0.7%.”

Housing Wire – “Survey Finds Short Sales Outnumber REO in January Purchases” (2-22-10)

“Short sales accounted for 15.9% of home purchases in January, surpassing the share of other distressed property activity, when real estate owned (REO) properties are measured separately, according to a monthly Campbell/Inside Mortgage Finance (IMF) survey of more than 1,500 real estate agents, conducted by Campbell Surveys.”

Bloomberg - “Yellen Says U.S. Economy Will Perform Below Potential” (2-22-10)

“Federal Reserve Bank of San Francisco President Janet Yellen said the U.S. economy will operate below potential this year and next and still needs low interest rates to gain strength. “

Tags: , , , , , , , , , , , , , , ,
Posted in News | No Comments »