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The Norris Group Real Estate News Roundup 7/28/11

Thursday, July 28th, 2011

Today’s News Synopsis:

The sales for existing homes increased 2.4% in June according to Bloomberg.  However, chief economist for Fannie Mae warned this does not necessarily mean a turn-around in the market.  In other news, despite a huge decrease in foreclosures in 84% of U.S. cities, there are still ten cities with high foreclosure rates and thus not indicating a positive turn in the market.

Housing Wire - “Vacant foreclosures in Ohio forming housing black hole“ (7-28-11)

“Every single vacant, foreclosed property in Ohio is proving to be a black hole that sucks down home prices, sits on the market for significantly longer, blights entire neighborhoods and boggles the mind through the sheer amount of REO volume.”

Bloomberg - “Existing Home Sales in U.S. Rose 2.4% in June” (7-28-11)

“The number of contracts to purchase previously owned U.S. homes unexpectedly rose in June as buyers tried to take advantage of lower prices and borrowing costs.  The 2.4 percent rise in the index of pending home resales followed an 8.2 percent May gain, the National Association of Realtors said today in Washington. Economists forecast a 2 percent drop, according to the median estimate in a Bloomberg News survey.“

NAHB - “Remodeling Activity Slows Under Economic Uncertainty” (7-28-11)

“The remodeling market slipped under pressure from a sluggish economy according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI), which dipped during the second quarter to 43.9 from the first quarter result of 46.5. An RMI below 50 indicates that more remodelers report market activity is lower compared to the prior quarter than report it is higher.”

DS News - “Increase in Pending Sales May Not Indicate Market Upswing” (7-28-11)

“The National Association of Realtors (NAR) released its Pending Home Sales Index Thursday, revealing an increase in pending home sales for the month of June,
marking the third of the last four months that the index has increased.”

Inman - “Trulia launches agent recommendation system” (7-28-11)

“Real estate search and marketing site Trulia today launched an agent recommendation system that incorporates endorsements from Facebook friends.”

Realty Times - “Chase, BofA Offer Modifications Without Homeowner Request” (7-28-11)

“JPMorgan Chase and Bank of America are reportedly modifying loans for borrowers who haven’t asked for help, in some cases slashing mortgage balances in half.  The two major banks were among others recently criticized for mishandling federally sanctioned mortgage modifications and slammed for botching foreclosures.”

NAHB - “Federal Proposal Could Raise Refinance Costs For Nearly 25 Million Homeowners” (7-28-11)

“Nearly 25 million homeowners across the country would face more expensive mortgages if a proposal by federal regulators goes unchanged. A proposal released by six federal agencies to implement credit risk retention provisions included in the Dodd–Frank Wall Street Reform and Consumer Protection Act would require homeowners to have at least 25 percent equity in their homes in order to qualify for a lower-rate “Qualified Residential Mortgage” (QRM) for refinancing.”

Mortgage Bankers Association - “MBA Statement on Debt Ceiling Negotiations” (7-28-11)

“‘The Mortgage Bankers Association is very concerned about the implications to the financial system of the United States if the U.S. defaults on its debt. The likely impact to the financial markets, interest rates, and to every family in America will be costly if the ceiling is not raised. We implore policymakers to act swiftly and find a workable solution, given the short time left, to take this step and not put the credit rating of the United States in jeopardy’.”

The Wall Street Journal - “UBS Is Sued for Mortgage Losses” (7-28-11)

“The federal regulator for Fannie Mae and Freddie Mac on Wednesday sued UBS AG, accusing the Swiss investment bank of costing the two mortgage giants at least $900 million by selling them shaky mortgage-backed securities during the housing market boom.”

Realtor Magazine - “Foreclosures Fall, But 10 Areas Still Hard-Hit” (7-28-11)

“During the first half of the year, foreclosures have dropped in more than 84 percent of U.S. metro areas, RealtyTrac reports. Is this a sign of a turnaround? Not quite, say analysts.”

Looking Back:

Commercial and multifamily mortgage origination increased by 35 percent in the second quarter of 2010. Mortgage application volume decreased 4.5 percent from the previous week, according to the MBA. Freddie Mac reports Americans took out $8.3 trillion in home equity during the second quarter of 2010. The number of foreclosure starts for 2010 was at 1.46m.

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 7/19/11

Tuesday, July 19th, 2011

Today’s News Synopsis:

In a big storym, the construction of new homes increased 14.6% in the month of June.  Unfortunately, mortgages are down to a new low in four years with a 19% decrease in the second quarter.  A new law, SB 458, was signed into law on Friday and will bring changes to short sales. 

In The News:

Los Angeles Times - “California foreclosure starts fall to lowest level in four years” (7-19-11)

“The number of Californians entering foreclosure dropped steeply in the second quarter to hit its lowest level since 2007, a sign the foreclosure crisis in the Golden State could be easing amid a more stable housing market and increased scrutiny from regulators.”

Realty Times - “Top Remodeling Projects” (7-19-11)

“Remodeling Magazine’s latest Cost Versus Value Report 2010-2011 has been released and it revealed that the recent declines in housing are having substantial effects on the remodeling market.”

DS News - “California Law Offers Deficiency Protections to Short Sellers” (7-19-11)

“A new California law bars junior lien holders from pursuing borrowers to collect outstanding loan balances after a short sale has been completed.”

NAHB - “Housing Production Regains Some Strength in June” (7-19-11)

“Nationwide housing starts rose 14.6 percent to a seasonally adjusted annual rate of 629,000 units in June, according to figures released by the U.S. Commerce Department today. This was the best pace of housing production since the beginning of the year, and was attributable to significant gains registered in both the single-family and multifamily segments as well as every region of the country.”

Bloomberg - “California Mortgage Defaults Decline 19% to Lowest Level in Four Years” (7-19-11)

“Home-mortgage defaults in California fell 19 percent in the second quarter from a year earlier to the lowest in four years as lenders changed foreclosure policies and price declines slowed, according to DataQuick.”

RisMedia - “RE/MAX Reports Inventories are Sinking” (7-19-11)

“Inventories in 53 markets surveyed last month by RE/MAX are down nearly fifteen percent from a year ago, when the tax credit boom was winding down, another indication that housing markets have recovered from the tax credit-induced sales boom and the bust that followed it.”

Housing Wire - “More firms bet on incoming wave of REO” (7-19-11)

“The past few weeks of acquisitions and deals among REO asset managers shows more bets are being made that a long-awaited supply of these properties may finally be hitting the market.”

Bloomberg - “Office Prices in California’s Subprime Center Leapfrog Real Estate Rebound” (7-19-11)

“Investors are bidding up prices for top-tier office buildings in Orange County, California, even as vacancies stand at almost 20 percent after the collapse of the
subprime-mortgage industry that once made the region its home.”

Housing Wire - “Moody’s: CMBS delinquency rate falls to 9.02% for June” (7-19-11)

“The rate of delinquent loans in commercial mortgage-backed securities declined in June but remains higher than 9%, as it has for all of 2011, according to Moody’s Investors Service.”

DS News - “Bank of America to Scale Back Servicing Portfolio” (7-19-11)

“Bank of America says it is looking to downsize its mortgage servicing portfolio.”

Looking Back:

The NAHB reported that builder confidence in the singe-family home market decreased to the lowest point in a year. Builders began work on 580,000 houses the previous month, according to the Commerce Department. A survey from REMAX showed that existing home sales increased in June 2010 by 5.6% in comparison to the same month in 2009. The Bay Area lost more than 10,000 jobs in June of 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 11/16/10

Tuesday, November 16th, 2010

Today’s News Synopsis:

16,744 new and resale homes sold in Southern California during October. Builder confidence increased slightly this month, according to the NAHB. Sean O’Toole of ForeclosureRadar believes the foreclosure investigation will only have a brief effect on the market. FHA wrote $319 billion in new insurance in 2010.

In The News:

DQNews – “Southland Home Sales Fall, Prices Flat” (11-16-10)

“A total of 16,744 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 7.4 percent from 18,091 in September, and down 24.3 percent from 22,132 for October 2009, according to MDA DataQuick of San Diego.”

NAHB - “Builder Confidence Improves Slightly in November” (11-16-10)

“Builder confidence in the market for newly built, single-family homes improved slightly in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI rose one notch to 16 from a downwardly revised level of 15 in the previous month.”

Inman - “Realtor.com reclaims No.1 spot” (11-16-10)

“Realtor.com reclaimed the top spot as the most-visited real estate-related website in October, according to the latest report from Web metrics firm Experian Hitwise. The report’s data is based on a sample of 10 million U.S. Internet users.”

CNN - “Foreclosure mess prompts call for stress tests” (11-16-10)

“The Congressional Oversight Panel, created by Congress in 2008 to review the Treasury Department’s response to the financial crisis, issued a 125-page report detailing recent allegations that banks and loan servicers filed thousands of inaccurate documents in foreclosure cases across the country.”

Housing Wire – “ForeclosureRadar: dramatic decline in REO sales in October” (11-16-10)

“While 50 state attorneys general offices and 11 regulators are investigating the matter, Sean O’Toole, CEO of ForeclosureRadar, said the issue will only have a brief effect, and that the real problem will be new scammers cropping up.”

Housing Wire – “FHA 5 years away from 2% reserve ratio” (11-16-10)

“The Federal Housing Administration reported today that its capital reserve ratio will return to the 2% level mandated by Congress in 2015.”

Housing Wire – “Moody’s sees minimal risk to RMBS from robo signing, MERS litigaton” (11-16-10)

“The risks posed to residential mortgage-backed securities by the robo-signing debacle are extremely low to moderate and should have a limited impact, according to Moody’s Investors Service.”

Housing Wire – “One-third of fund managers see stronger economy in 2011″ (11-16-10)

“Investor strategy is slowly returning to a ‘normal level’ of risk-taking as 35% of fund managers now see the global economy strengthening next year. Only 15% reported the same sentiment last month, according to the latest Bank of America Merrill Lynch Survey of Fund Managers.”

Housing Wire – “Reducing mortgage principal? Count MGIC out” (11-16-10)

“The nation’s leading private mortgage insurer, Mortgage Guaranty Insurance Corp., sent an e-mail out late Monday to mortgage default servicing clients clarifying its policies regarding distressed borrowers.”

Housing Wire – “Ginnie Mae to disclose loss mitigation data on single-family pools” (11-16-10)

“Ginnie Mae will begin issuing reports on how many mortgages have gone through the loss-mitigation process for securitization investors.”

Housing Wire – “FHA mortgage insurance beats private market 25-fold: KBW” (11-16-10)

“The Federal Housing Administration wrote $319 billion in new insurance in 2010, more than 25 times the $12.4 billion in new insurance written by the top five private companies over the last year.”

Housing Wire – “Head of Chase mortgage: Foreclosure always last resort” (11-16-10)

“Foreclosure is always the last resort and least desired option for delinquent mortgages, and JPMorgan Chase uses all possible remedies prior to starting any foreclosure process, according to an executive in the bank’s home loan office. And in most cases, no one is even living in the property any longer.”

Bloomberg - “Bailout Panel Warns of Bank Mortgage Losses, Urges Stress Tests” (11-16-10)

“Regulators should conduct new stress tests on banks because legal challenges to foreclosures and uncertainties in the housing market could threaten the financial system, a congressional watchdog said.”

Bloomberg - “FHA Reserves Fall to Lowest on Record as Agency Boosts Capital” (11-16-10)

“The FHA’s capital-reserve ratio, which measures funds needed to cover projected losses, fell to 0.50 percent in the year ended Sept. 30 from 0.53 percent a year earlier, remaining below the federally mandated 2 percent minimum for a second straight year, the agency said today in a report to Congress.”

Looking Back:

One year ago, the Worker, Homeownership and Business Assistance Act was expected to provide approximately 33 billion dollars in tax cuts to real estate corporations. Statistics from Altera Real Estate showed that the most difficult Orange County market to find a new home in was Ladera Ranch. Foreclosure Radar reported that investors bought 337 homes and condos at foreclosure auctions in October.

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 200 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 7/27/10

Tuesday, July 27th, 2010

Today’s News Synopsis:

The S&P home price index suggests that prices increased by 1.3 percent from April to May. 91 of the top 100 homebuying zip codes are in California. The vacancy rate for rental housing has remained flat at 10.6 percent for the past year. MPF Research reports the number of occupied apartments grew by 215,000 in the 64 largest U.S. markets in the first half of 2010.

In The News:

Associated Press – “Home prices increase 1.3 pct. in May from April” (7-27-10)

“The Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday posted a 1.3 percent increase in May from April. Nineteen of 20 cities showed price gains month over month. Minneapolis and Atlanta led the way with 2.8 percent and 2 percent increases, respectively. And San Diego posted its 13th straight monthly gain.”

Inman - “California ‘hot’ among homebuyers” (7-27-10)

“Of the report’s 100 ‘hottest’ ZIP codes nationwide, 91 were in California. This means that, on average, homes in these ZIP codes sold for the most above listing price, while homes in the ‘coldest’ ZIP codes sold for the most under listing price.”

Housing Wire – “Housing Vacancy, Homeownership Rates Remain Level in Q210″ (7-27-10)

“The 2.5% vacancy rate of owner-occupant housing units was only 10 basis points (bps) below the previous quarter and remained level with the year-ago quarter. The rental housing market’s vacancy rate of 10.6% in Q210 was level with the previous quarter and year-ago quarter. Additionally, the homeownership rate slipped to 66.9%, nearly level with 67.1% in the previous quarter”

Housing Wire – “HUD Fines CitiMortgage $700,000 for Failure to Report Delinquencies” (7-27-10)

“The US Department of Housing and Urban Development (HUD) reached a $700,000 settlement with CitiMortgage, Inc. (CMI) after the company failed to report delinquent loans by the specified monthly deadline. The action was reported in a recently released notice of actions being taken against Federal Housing Administration (FHA) lenders that failed to comply with government standards for lending practices.”

Housing Wire – “FHFA Sees 30-Year Mortage Rate Dip to 5% June” (7-27-10)

“The average contract mortgage rate on conventional 30-year fixed-rate mortgages slipped to 5% in June, 12 basis points (bps) down from a month earlier, according to the Federal Housing Finance Agency (FHFA). The rate had held at 5.12% for the past two months. The contract rate on the composite of all mortgage loans (both fixed- and adjustable-rate) fell 9 bps to 4.9%”

Bloomberg - “Apartment Rentals Surge in U.S. on Home Foreclosures, Job Gains” (7-27-10)

“The number of occupied apartments increased by 215,000 in the 64 largest U.S. markets in the first half, according to MPF Research. That’s almost double the units added in all of 2009 and the most since the firm began tracking the data in 1992. The vacancy rate declined to 6.6 percent last month from 8.2 percent in December.”

Bloomberg - “U.S. Cities, Counties Poised to Cut 500,000 Jobs, Report Finds” (7-27-10)

“U.S. local governments may cut almost 500,000 jobs through next year to cope with sliding property taxes, a decline in state and federal aid and added need for social services, according to a report released today. The report, a result of a survey by the National League of Cities, the U.S. Conference of Mayors and the National Association of Counties, showed local governments are moving to cut the equivalent of 8.6 percent of their workforces from 2009 to 2011. That suggests 481,000 employees will lose their jobs, according to the report, which said the tally may yet rise.”

Orange County Register – “Hear why next housing peak ‘2016 or beyond’” (7-27-10)

“Economist Mark Schniepp of the California Forecast tells ocregister.com in a podcast interview that local housing will endure a recovery that’s ‘painstakingly frustrating’ in its modesty with improving but not impressive sales volumes and prices. But it will take a big turnabout in the employment picture before hosuing’s rebound become significant but it will still be ‘until 2016-2017 or beyond’ before the old peaks are surpassed.”

Housing Wire – “Big 4 Banks Add $9.5bn in Nonperforming, Foreclosed Properties in One Year” (7-27-10)

“Each of the ‘big-four’ banks, Bank of America (BAC: 14.19 +0.28%), Wells Fargo (WFC: 28.39 +1.72%), JPMorgan Chase (JPM: 40.69 +0.89%) and Citigroup (C: 4.16 +0.24%) released quarterly earnings reports for Q210 in July, reporting a total increase of $9.5bn in nonperforming or foreclosed properties from the same quarter last year.”

Looking Back:

One year ago, pools increased a homes value by up to 11 percent in Southern California. Fiserv predicted that California would be the hottest home market in 2010. New home purchases climbed 11 percent in June 2009.

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The Norris Group Real Estate News Roundup 7/15/10

Thursday, July 15th, 2010

Today’s News Synopsis:

According to MDA DataQuick, 8,373 homes closed escrows in the Bay Area last month. Freddie Mac announced the average rate for 30-year fixed loans this week was 4.57 percent. The Federal Open Market Committee expects economic expansion to increase considerably slower over the next couple years than it previously expected. California is currently the second most popular place for foreign home buying.

In The News:

Business Journal – “Brown sues housing agency over halt to PACE programs” (7-14-10)

“California Attorney General Jerry Brown on Wednesday filed a lawsuit against The Federal Housing Finance Agency and mortgage giants Fannie Mae and Freddie Mac in the wake of the federal agency’s negative assessment of the Property Assessed Clean Energy Program. Brown, California’s Democratic candidate for governor, asks the court to require Fannie Mae and Freddie Mac to recognize PACE assessments.”

DQNews - “Bay Area June Home Sales Send Mixed Signals” (7-15-10)

“Last month a total of 8,373 homes closed escrows in the nine-county Bay Area, up 1.3 percent from 8,264 in May but down 3.1 percent from 8,644 in June 2009, according to MDA DataQuick of San Diego.”

Los Angeles Times – “U.S. home foreclosures reach record high in second quarter” (7-15-10)

“U.S. bank repossessions increased 38% in the second quarter from the same period a year earlier for a record total of 269,952, according to Irvine research firm RealtyTrac. That was also a jump of 5% from the previous quarter. If that pace continues through the year, the number of homes taken by banks is likely to top 1 million by the end of 2010, said Rick Sharga, RealtyTrac senior vice president.”

San Francisco Chronicle – “Mortgage rates remain at lowest level in decades” (7-15-10)

“Government-sponsored mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans this week was 4.57 percent. That’s the same as a week earlier and the lowest since Freddie Mac began tracking rates in 1971.”

Housing Wire – “Value of JPMorgan Government-Backed REO Triples Since 2009″ (7-15-10)

“REO insured by the US government totaled $1.4bn in Q210 compared to $508m in Q209. The latest results are nearly double the total from Q110, $707m. In addition, JPMorgan said nonaccruing mortgages insured by US government agencies were up 140% from Q209, at $10.1bn in Q210 compared to $4.2bn one year ago. Nonaccruing mortgages are those that are late and no longer acrruing interest. That volume is down, however, from $10.5bn in Q110, JPMorgan said.”

Housing Wire – “Feds: No Need to Change Rates Despite Slowdown in Housing” (7-15-10)

“The Federal Open Market Committee (FOMC) in its June 22-23 meeting decided to maintain its target zero to 0.25% federal funds rate despite signs of slowdown in economic and housing growth, according to meeting minutes released this week. Data on production and spending since the Feds’ last meeting remained aligned with expectations, but the pace of economic expansion over the next year and a half looks to be somewhat slower than previously predicted.”

Inman - “6 strategies for a realistic asking price” (7-15-10)

“Absorption rates are generally one of the most powerful ways to persuade sellers to be realistic. The calculation is relatively simple. In most areas, your local multiple listing service publishes how many months of inventory are currently on the market. Next, divide ’1′ by the number of months of inventory. This gives you the percentage of listings that are selling each month. It also tells you the seller’s odds of selling in a given month. For example, if there are 12 months of inventory on the market, that means that the seller’s odds or probability of selling in any month is 8.3 percent (1/12). The probability the seller won’t sell in a given month is 91.7 percent (11/12).”

Orange County Register – “18% more hotels in financial distress” (7-15-10)

“Atlas Hospitality Group reports 73 more California hotels were in high financial distress — in default on their mortgage or foreclosed upon — in the second quarter vs. a year ago. This 478 second-quarter total is an 18% increase from the first quarter 2010 and up 132% vs. a year ago”

Orange County Register – “Calif. No. 2 spot for foreign homebuyers” (7-15-10)

“Florida was the top target for foreign buyers with (22%) of transactions in past year. California was second at 12%; then came Arizona (11%) and Texas (8%.) California was tops as recently as two years earlier.”

Orange County Register – “Is your ZIP a loan-fraud ‘hot spot?’” (7-15-10)

-Contains a list of cities in Orange County and their fraud rates

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 7/13/10

Tuesday, July 13th, 2010

Today’s News Synopsis:

MDA DataQuick reports 23,871 homes were sold in Southern California last month. Statistics from CoreLogic show that prices in May grew 0.9% from the month before. According to Foreclosure Radar, lenders canceled nearly 22,000 California foreclosure sales in June. A comparative analysis from Credit Suisse shows that the cost of owning a home is cheaper than renting in multiple areas.

In The News:

DQNews - “Southland home sales edge up, prices level off” (7-13-10)

“A total of 23,871 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 7.2 percent from 22,270 in May, and up 2.6 percent from 23,262 for June 2009, according to MDA DataQuick of San Diego.”

Housing Wire – “Home Prices Increase for the Fourth Straight Month: CoreLogic” (7-13-10)

“Home prices on the CoreLogic home price index (HPI) have increased every month since the 0.3% yearly increase in February. The May increases come after a 2.6% yearly gain in April. Prices in May grew 0.9% from the month before, a smaller increase from the 1.3% gain from March to April. According to CoreLogic, sales in the bottom-tier of the market, those homes priced at 75% below the median, are driving the recent increases in overall prices.”

Sacramento Bee – “California tax assessments of homes to go down” (7-13-10)

“Sacramento County’s tax roll dropped nearly 2.2 percent to $128.8 billion. Yolo County’s is down about 1.9 percent. And El Dorado County and Placer County both saw the value of their taxable property drop more than 6 percent. The falling values represent good news for many homeowners, who will see lower property tax bills this October.”

Housing Wire – “HAFA Ushers Record Number of Foreclosure Sale Cancellations in California” (7-13-10)

“Lenders canceled nearly 22,000 California foreclosure sales in June, driven mostly by JPMorgan Chase (JPM: 40.48 +3.29%). It’s a 27% increase from May, a 153% growth from a year ago, and an all-time high, according to ForeclosureRadar, which tracks foreclosures in the state.”

Housing Wire – “Cost Spread Between Owning a Home and Renting is Narrowing: Credit Suisse” (7-13-10)

“With mortgage rates at record lows and housing markets stuffed to the gills with cheap distressed properties that’s led to declining home prices, the cost to own a home is sometimes cheaper than renting an apartment in many markets, according to analysts at Credit Suisse. While a segment of the renting population continues to rent, many are looking to dip their toes in the homeownership waters. Credit Suisse said the percentage of median household income needed to pay the mortgage on a median priced home is at a 30-year low, as seen in the below chart.”

Housing Wire – “Seriously Delinquent Prime RMBS Rise for 37th Straight Month: Fitch Ratings” (7-13-10)

“The 60-plus-day delinquency rate for US prime residential mortgage-backed securities (RMBS) rose in the 37th consecutive month in June, according to Fitch Ratings. The credit-rating agency noted the ‘seriously’ delinquent rate — of 60 days or more — within prime jumbo RMBS rose to 10.4% in June, up from 10.3% in May and 6.4% at the same time last year.”

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 6/24/10

Thursday, June 24th, 2010

Today’s News Synopsis:

According to the CIRB, building permits were pulled for 3,088 housing units in May. Statistics from Freddie Mac show the 30-year fixed-rate mortgage averaged 4.69% last week. Several large banks, such as JP Morgan, are hiring thousands of mortgage officers in preparation to make more loans. TIGTA estimates the IRS awarded $26.7 million to fraudulent home buyer tax credit claims.

In The News:

CBIA - “California Housing Production Up in May, CBIA Announces” (6-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,088 total housing units in May, up 4 percent from the same month a year ago but down 6 percent from April. Permits for single-family homes totaled 1,902, down 19 percent from May 2009 and down 17 percent from the previous month, while multifamily permits totaled 1,186, up 87 percent from a year ago and up 17 percent from April.”

Market Watch – “Fixed-rate mortgages, 5-year ARMs hit lows: Freddie Mac” (6-24-10)

“The 30-year fixed-rate mortgage averaged 4.69% for the week ending June 24, down from 4.75% last week and 5.42% a year ago. Fifteen-year fixed-rate mortgages averaged 4.13%, down from 4.20% last week and 4.87% a year ago.”

CNN - “Banks: We’re hiring so we can make more home loans” (6-24-10)

“Several banks are gearing up to do a whole lot more mortgage lending in the future. Even though new homes sales were at a historical low in May and the housing market in general is in the doldrums, these banks are hiring hundreds of loan originators, getting ready for what they believe will be a significant pick-up in lending. JPMorgan Chase (JPM, Fortune 500), one of the nation’s largest lenders, is in the midst of hiring 1,200 mortgage officers.”

New York Times – “Fed Leaves Rates, Citing Overseas Threats” (6-24-10)

“The Federal Reserve’s policy-making arm said on Wednesday that it had decided to keep short-term interest rates near zero for ‘an extended period,’ citing challenges to economic growth, including the effect of new financial troubles abroad.”

Housing Wire – “Treasury Watchdog Says 1,295 Prisoners Claimed Homebuyer Tax Credit” (6-24-10)

“The Treasury Inspector General for Tax Administration (TIGTA) released its latest interim audit (download here) on Internal Revenue Service (IRS) efforts to identify and prevent fraudulent homebuyer tax credits. All told, TIGTA’s investigation estimates the IRS paid out $26.7m in erroneous credits, less than 1% of the estimated $13.6bn in homebuyer tax credits claimed. Of the approximately 1.2m individuals who claimed the credit, TIGTA estimates 14,132 — about 1.1% — are erroneous or fraudulent claims.”

Housing Wire – “AIA Economist: Desperate Architects Find Themselves in Heated Bidding Wars” (6-24-10)

“We’ve certainly seen the pendulum swing in the other direction, probably even further back than where it started at over the last five years. Homes have gotten smaller. There is much more emphasis on not over investing or over improving. There’s a greater concern over affordability. What can I sell this for when I want to sell it and not trying to over extend the household in this economic environment.”

Housing Wire – “Regulators Find More than Half of Mortgage Modifications in Trouble Again” (6-24-10)

“Of the more than 1m modifications done in 2008 and 2009, 53% are either delinquent or in foreclosure again in Q110, according to a report from Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS).”

Housing Wire – “FHFA Monthly 30-Year Mortage Rate Report Unchanged in May” (6-24-10)

“In its report, the FHFA said the average interest rate for a conventional, 30-year fixed-rate purchase mortgage with a principal of $417,000 or less was 5.12% in May, even from last month’s report.”

Bloomberg - “Betting Who’s Right on Home Prices: Baker vs Maki” (6-24-10)

“Dean Maki, chief U.S. economist at Barclays Capital, says the worst is over for the U.S. housing sector. Dean Baker, co-director of the Center for Economic and Policy Research, expects another painful decline. They reflect an almost even split among forecasters on the outlook for residential real estate, and whichever side turns out to be right will have made a call on more than just home prices. Housing will play a crucial role in the direction of the nation’s economy and global financial markets, just as it triggered a two-year recession that erased more than 8 million U.S. jobs and $37 trillion from world stock markets.”

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 6/11/10

Friday, June 11th, 2010

Today’s News Synopsis:

The MBA believes the new FHA Reform Act will have a positive effect on FHA’s finances. Tom Beede of Metrolist Services reports 58 percent of May home sales in Sacramento County were short sales. Congress may extend the home-buyer tax credit due to the inability of lenders to finish all applications within the current due date.

In The News:

Mortgage Bankers Association – “MBA Reacts to House Passage of FHA Reform Act” (6-11-10)

“FHA is playing a critical role in today’s housing market, helping to provide more affordable financing for borrowers looking to purchase or refinance a home.  The reforms contained in this bill will help stabilize FHA’s finances by allowing the agency to raise its annual premiums and better take corrective action against lenders who are putting the program at risk.”

Sacramento Bee – “Home Front: Short sales — and ways to exploit them — rise in Sacramento” (6-11-10)

“In mid-May, 58 percent of homes for sale in Sacramento County were short sales and only 13 percent were bank repossessions, said Tom Beede, president and chief executive officer of Metrolist Services Inc.”

Wall Street Journal – “Congress Could Extend Home-Buyer Tax Credit Closing Deadline” (6-10-10)

“What if the home-buyer tax credit worked too well? That’s the latest concern from the real-estate industry, which says that a last-minute home-buying rush in April created bottlenecks at lenders and real-estate service companies that may not be able to finalize purchases in time for tens of thousands of buyers to receive a tax credit worth up to $8,000.”

Bloomberg - “Builders Rush to Complete Houses by U.S. Tax Credit Deadline” (6-11-10)

“U.S. builders such as LGI Homes are on a tight deadline to finish houses by the end of June so purchasers can get a federal tax credit of as much as $8,000. Buyers had to sign a contract by April 30 and must complete the transaction by July 1 to qualify. That’s speeding up a construction process that for some builders can take five to six months.”

Bloomberg - “JPMorgan Sells $716.3 Million of Commercial Mortgages” (6-11-10)

“JPMorgan Chase & Co. sold $716.3 million of bonds backed by commercial mortgages in the second offering of the debt this year, according to a person familiar with the transaction.”

Inman - “Understanding the Gen Y gender gap” (6-11-10)

“women are fundamentally different than men in what they look for in a home, Chung said. Part of being fiscally conservative is that they are more willing to make trade-offs as far as home luxuries in favor of preferred community characteristics.”

Inman - “Yahoo Real Estate climbs to No. 2″ (6-11-10)

“Realtor.com maintained its lock on the No. 1 spot with 6.2 percent of traffic; Rent.com also kept its No.4 spot with 2.8 percent of traffic. Trulia jumped into the top five with 2.7 percent of traffic, bumping ZipRealty down to sixth place with 2.4 percent market share.”

Wall Street Journal - “Is It Better to Buy New Home or ‘Used’?” (6-11-10)

“It’s impossible to know how much negotiating power you’ll have with each of these sellers until you know how desperate each is to sell. So the first thing you should do is to ask your agent to find out as much as possible about what’s motivating each: Is the resale seller just testing the market, or going through a divorce? Is the builder opening up new projects or has he been sitting for months on stale inventory? You should find out how long each house has been on the market, whether there have been price drops, how often these have occurred and how deep they were. This will give you a sense of how eager each party is to deal with you.”

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 6/9/10

Wednesday, June 9th, 2010

Today’s News Synopsis:

According to the MBA, mortgage loan application volumed decreased by 12.2 percent from last week. Economist Dr. Christopher Thornberg believes that government intervention is simply delaying inevitable declines in the housing market. Interthinx reports fraud risk in the national mortgage industry rose 4% in Q110.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (6-9-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 4, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 12.2 percent on a seasonally adjusted basis from one week earlier. This week’s results include an adjustment to account for the Memorial Day holiday.  On an unadjusted basis, the Index decreased 21.1 percent compared with the previous week.”

Bloomberg - “Bank of America May Lead Banks in Home-Equity Losses” (6-9-10)

“Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. may lead 20 publicly traded U.S. banks that charge off as much as $40.9 billion on home-equity investments this year, Fitch Ratings said. In the worst-case scenario considered by Fitch, the three banks may write off a combined $31.2 billion as loans from the height of the housing market sour, analysts John Mackerey and Ken Ritz wrote in a report today. The 20 banks on the list, which includes only lenders with above-average exposure to the business, may charge off a total of as much as $76.7 billion in the two years through 2011, the New York-based rating company estimated.”

Housing Wire – “Christopher Thornberg: Short-Term Recovery Comes at Long-Term Cost” (6-9-10)

“While government intervention is boosting the US economy, including the housing market, it’s only delaying inevitable future declines in growth, Christopher Thornberg, an economist and the founding principal of San Rafael, Calif.-based Beacon Economics, said during a keynote address at REO Expo, currently underway in Dallas.”

Housing Wire – “RealtyTrac: 3.8m Homes to Receive Foreclosure Filing in 2010″ (6-9-10)

“An estimated 3.8m households will receive a foreclosure filing in 2010, said Rick Sharga, senior vice president at the online foreclosure marketplace RealtyTrac, in a speech at REO Expo.”

Housing Wire – “Bank of America Puts Short Sales Ahead of REO” (6-9-10)

“Bank of America, one of the largest lenders in the U.S., has instituted a policy of liquidating as many assets saddled with defaulted loans as possible before repossession, said Matt Vernon, the short sale and REO executive at BofA. Vernon took the position at BofA in February. He has since announced plans to add 1,000 employees to the short sale staff. BofA currently holds more than 477,000 loans eligible for the Home Affordable Modification Program (HAMP), and has provided more than 600,000 modifications through HAMP and its own programs.”

Housing Wire – “Mortgage Fraud Risk Up 11% in Interthinx Yearly Index” (6-9-10)

“Fraud risk in the national mortgage industry rose 4% in Q110 from Q409, and 11% from the year-ago period, according to the latest report from mortgage software developer Interthinx.”

Realty Times – “Managing HOA Construction” (6-9-10)

“Your homeowner association may be faced with a large siding, dryrot or structural repair. These projects often involve a number of disciplines like carpentry, electrical, plumbing and engineering that must be properly integrated for a satisfactory end result. When it comes to accomplishing complex renovation projects, it makes sense to use the services of a professional Construction Manager (CM).”

Looking Back:

One year ago, The U.S. Department of Housing and Urban Development (HUD) announced on May 29 that the Federal Housing Administration (FHA) will allow state housing finance agencies to provide second mortgages ‘monetizing’ the tax credit. Real Estate Econometrics estimated that rates on commercial mortgages would reach 4.1 percent by the end of 2009. 10 banks won U.S. Treasury approval to buy back $68 billion of government shares.

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 5/12/10

Wednesday, May 12th, 2010

Today’s News Synopsis:

The NAHB reports that builder confidence increased from Q1 2009, but is still low. The MBA’s weekly survey shows that mortgage application volume increased by 3.4 percent. According to Freddie Mac, of all borrowers who had 30-year FRMs, 75% refinanced into a new 30-year FRM. Barclays estimates that foreclosure shadow inventory should peak during the summer of 2010.

In The News:

NAHB - “Active Adult Home Builder Activity, Confidence Remain Low” (5-12-10)

“The 55+ single-family HMI measures builder sentiments based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market.  A number greater than 50 indicates that more builders view conditions as good than poor. Although the index recorded a slight rise in the first quarter of 2010 – moving up two points to 19 from its 2009 Q1 level of 17 – the level of confidence remains low.”

Mortgage Bankers Association – “Refinance Applications Surge, Purchase Applications Drop in Latest MBA Weekly Survey” (5-12-10)

“The Refinance Index increased 14.8 percent from the previous week and the seasonally adjusted Purchase Index decreased 9.5 percent from one week earlier.  The unadjusted Purchase Index decreased 8.9 percent compared with the previous week and was 0.6 percent lower than the same week one year ago. The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 7, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 3.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 3.4 percent compared with the previous week.”

Inman - “More U.S. residents on the move” (5-12-10)

“The percentage of U.S. residents who moved between 2008 and 2009 jumped to 12.5 percent (37.1 million people), according to a report by the U.S. Census Bureau. That increase comes after a record-low move rate between 2007 and 2008: 11.9 percent, or 35.2 million people. The bureau’s data comes from the 2009 Current Population Survey conducted between February and April every year at about 100,000 U.S. addresses. It includes residents who are at least 1 year old.”

Housing Wire – “Freddie Mortgage Refinancing Dominated by Fixed-Rate Products” (5-12-10)

“Of borrowers who had 30-year FRMs, 75% refinanced into a new 30-year FRM, while 15% opted for a 15-year FRM and the remaining 10% chose a 20-year FRM. Freddie said the combined 25% of 30-year borrowers that refinanced into a shorter-term loan is the most since Q304, when 30% of 30-year borrowers refinanced into a balloon mortgage or shorter-term FRM.”

Housing Wire – “Shadow Inventory To Peak in Summer of 2010: Barclays” (5-12-10)

“The shadow inventory of foreclosures should peak in the summer of 2010 before falling gradually in the later months, according to a new report from Barclays Capital. Barclays defines the shadow inventory of foreclosures as loans in 90-plus day delinquency or already in the foreclosure process. According to the report, there are currently 2.4m loans in 90-plus day delinquency and another 2.1m in foreclosure, totaling 4.5m in the shadow inventory.”

Housing Wire – “End in Sight for General Growth Bankruptcy” (5-12-10)

“The end is in sight, as a plan is in place for General Growth Properties (GGP: 14.96 +0.20%) to emerge from bankruptcy as early as this summer. The judge overseeing the case approved bidding procedures and the issuance of warrants to a group of investors led by Brookfield Asset Management (BAM: 25.49 +1.03%).”

Bloomberg - “‘Perfect Quarter’ at Four U.S. Banks Shows Fed-Fueled Revival” (5-12-10)

“Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc., the first, second and fifth-biggest U.S. banks by assets, all said in regulatory filings that they had zero days of trading losses in the first quarter. Citigroup Inc., the third-largest, doesn’t break out its daily trading revenue by quarter. It recorded a profit on each trading day, two people with knowledge of the results said.”

Bloomberg - “Morgan Stanley’s Gorman Denies Bank Misled CDO Buyers” (5-12-10)

“Morgan Stanley Chief Executive Officer James Gorman denied allegations the U.S. bank misled investors about mortgage derivatives it sold them. The firm is being probed by U.S. prosecutors over whether the bank misled clients when it sold them collateralized debt obligations as its own traders bet that the value of the securities would drop, the Wall Street Journal reported today. The New York-based firm hasn’t been contacted by the Justice Department, Gorman told reporters in Tokyo today.”

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