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By Bruce Norris .

The Norris Group Real Estate News Roundup 4/12/11

Tuesday, April 12th, 2011

Today’s News Synopsis:

81 percent of respondents to a Pew Research Center’s survey believe housing is the best investment a person can make. California foreclosure sales increased 35.1% in March, according to ForeclosureRadar. Altos Research claims home sale inventory rose 2.97% last month. HUD is being sued over a rule requiring a property heir to pay the full mortgage balance to keep the home, even if it exceeds the value of the property.

In The News:

Mortgage Bankers Association – “Weekly Applications Survey” (4-12-11)

“Mortgage applications decreased 6.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 8, 2011. ”

Housing Wire – “Investors eager, but hold no great expectations for economic growth” (4-12-11)

“Investors are jumping back into the market and reducing their cash holdings even as the overall economic outlook suggests the world economy is facing ‘below-trend growth’ and ‘above trend’ inflation, according to the Bank of America Merrill Lynch (BAC: 13.525 +0.26%) Survey of Fund Managers for April.”

Housing Wire – “HUD halts foreclosures on reverse mortgage spouses” (4-12-11)

“The Department of Housing and Urban Development directed its reverse mortgage lenders and servicers to halt foreclosures on the borrower’s spouse, according to a letter sent out last week. The American Association of Retired Persons sued HUD in March on behalf of three spouses of reverse mortgage borrowers. HUD changed a previous policy from 1989, changed in 2008, that said than an heir, which includes a surviving spouse, must pay the full mortgage balance to keep the home, even if it exceeds the value of the property.”

Reuters - “Housing still best investment despite downturn: study” (4-12-11)

“The survey by the Pew Research Center’s Social and Demographic Trends project found that 81 percent of respondents see housing as the best investment a person can make, despite a slump in prices that has knocked nearly a third off home values since 2006.”

MSN - “Some real estate agents feeling spring chill” (4-12-11)

“Spring typically is the year’s busiest season for residential real estate, but this year some normally upbeat sales agents are showing signs of nervousness as they confront sluggish growth and tough lending standards.”

DSNews - “Self-Evident Truth in Market Variables: Longer Foreclosure Timelines” (4-12-11)

“in California foreclosure sales in March increased 35.1 percent on a month-over-month basis, but rose just 10.5 percent on a daily average basis. Nevada foreclosure sales, however, bounced back strongly after falling in February, rising 109.5 percent even on a daily average basis.”

Housing Wire – “Mortgage industry workforce plummets 51% since 2006″ (4-12-11)

“The number of employees in the mortgage industry declined 51% between February 2006 and February 2011, which equates to a loss of 257,000 jobs. February 2006 marked the peak of employment in this sector at 505,000 individuals.”

Housing Wire – “Fannie, Freddie lenders to submit electronic appraisals in June” (4-12-11)

“Fannie Mae and Freddie Mac notified lenders Wednesday that a new system will be available June 27 giving lenders the ability to upload appraisals electronically.”

Housing Wire – “Housing inventory rises for spring selling season: Altos” (4-12-11)

“Home sale inventory was up 2.97% in March and up 6.83% over the three months ended in March, according to the Altos Research 10-City Composite Index.”

Orange County Register - “Who has too much power in America?” (4-12-11)

“A new Gallup Poll shows Americans think that lobbyists, major corporations, banks, and the federal government have too much power, while state and local governments, the legal system, organized religion, and the military have the right amount of power or too little of it.”

Looking Back:

One year ago, distressed home sales in Orange County were selling 34 percent under the typical market place. Fiserv estimated that home prices would not return to the past peak levels until 2025.

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 3/25/11

Friday, March 25th, 2011

Sources:
California incomes rose 2.5% in 2010
February Existing-Home Sales Decline following Sustained Gains
New-Home Sales Hit Record Low in February
California pending home sales, distressed sales rise in February
California Housing Production Continues Decline in February, CBIA Announces
Housing raises US recession alert
U.S. Commercial Property Prices Fell for Second Straight Month in January
Stress tests suggest economy may slide back into crisis: IRA
FDIC Files Lawsuit Against Former WaMu Execs and Wives

Today’s News Synopsis:

RadarLogic claims national home prices declined 3.8% in December. California added 100,000 jobs in February. Freddie Mac completed 23,017 loan modifications in January and February. Jerry Brown’s bid to dissolve around 400 redevelopment agencies may make a come back in a compromise on tax increases.

In The News:

Los Angeles Times – “California adds nearly 100,000 jobs in February” (3-25-11)

“A hiring surge led the California’s hallmark industries – high-tech, movies and tourism – generated nearly 100,000 new jobs in February and provided the surest sign yet that the state economy is on the mend. The seasonally adjusted jump in the number of people working to 96,500 was the highest monthly increase since the current record system began in 1990, state officials said.”

Housing Wire – “January home prices drop to a four-year low” (3-25-11)

“RadarLogic said an oversupply of homes, high rates of mortgage defaults, tighter lending standards and a housing market riddled with foreclosures weighed down January prices. The index, which tracks home prices across 25 major markets, declined 3.8% between December and January and 3.4% year-over-year.”

Housing Wire – “Freddie Mac completes 23,000 loan mods, single-family delinquency rate drops” (3-25-11)

“Freddie Mac completed 23,017 loan modifications during the first two months of 2011 and said single-family delinquencies on mortgages held or backed by the GSE dropped in February.”

DSNews - “SEC Rules Banks Must Allow Audit of Foreclosure Practices” (3-25-11)

“The NYC Pension Funds called for an audit of the banks’ practices in November and again in January to no avail, but this week the Securities and Exchange Commission (SEC) ruled that the request from the shareholders must be upheld.”

Housing Wire – “Broker compensation rule captures more heat in federal court” (3-25-11)

“the final rule not only prohibits loan originators from arranging loan terms that result in higher consumer costs, the same prohibition applies to offering consumers lower cost mortgage loans to meet competition and to save the consumer money.”

Bloomberg - “California Redevelopment Agencies May Be Back in the Shadow of the Gallows” (3-25-11)

“California Governor Jerry Brown’s bid to dissolve about 400 redevelopment agencies and use their revenue for schools and local government may be resurrected in a compromise on tax increases to close the budget deficit, according to a fiscal adviser to the Senate’s top Democrat.”

Looking Back:

New rules for the HAMP program may require servicers to screen borrowers for modification after only 31 days of delinquency. ForeclosureListings.com shows that California experienced an 11.9% increase in foreclosures. Freddie Mac reports the 30-year FRM rate is currently at 4.99 percent. According to the Comptroller of the Currency,  the re-default rate for modified loans is over 50 percent.

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 3/2/11

Wednesday, March 2nd, 2011

Today’s News Synopsis:

The MBA reports mortgage applications fell 6.5% last week. HUD said mortgage delinquencies declined in January. Wells Fargo predicts California economic growth will remain slow this year.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (3-2-11)

“Mortgage applications decreased 6.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending February 25, 2011.”

Sign On San Diego – “San Diego, Orange counties lead state growth” (3-2-11)

“Job growth in San Diego and Orange counties will help lead California into economic recovery, but the statewide growth rate will remain ‘painfully slow,’ according to a study released Tuesday by the economics group at Wells Fargo Securities.”

Inman - “HUD ramps up grants to fair housing groups” (3-2-11)

“Federal housing regulators are boosting grant funding by 48 percent to fair housing groups and nonprofit agencies that educate the public about housing and lending discrimination laws and help catch violators.”

Bloomberg - “BofA, Citigroup Say Mortgage Database Draws Scrutiny in Foreclosure Probe” (3-2-11)

“Earnings at Bank of America, the largest U.S. lender, may suffer materially if using Mortgage Electronic Registration Systems or MERS is found to be invalid, according to a regulatory filing last week. Citigroup and PNC said fines or other penalties may result from investigations into MERS and allegations of faulty foreclosure practices.”

Office of Thrift Supervision – “Thrift Industry Reports First Annual Profit Since Financial Crisis Began” (3-1-11)

“The U.S. thrift industry posted a profit of $6.6 billion in 2010, the first profitable year for the industry since 2006, the Office of Thrift Supervision (OTS) reported today.”

Housing Wire – “CMBS delinquency slows most since financial crisis, still hits record high” (3-2-11)

“The delinquency rate on commercial mortgage-backed securities increased 5 basis points to 9.39% in February, the smallest monthly gain since the financial crisis in 2008, according to analytics firm Trepp.”

Housing Wire – “Obama administration sees unsettled home prices keeping market down” (3-2-11)

“In its latest housing scorecard released by the Department of Housing and Urban Development and the Treasury Department, the administration said mortgage delinquencies in January continued to decline from record levels seen at the beginning of 2010.”

Housing Wire – “Fed’s Beige Book shows muted results in housing, finance” (3-2-11)

“Overall economic activity continued to expand at a modest to moderate pace in January and early February, although the housing and financial markets outlook was muted, according to the Federal Reserve’s Beige Book.”

Bloomberg - “Treasury Lobbies Congress to Save Housing Assistance Programs” (3-2-11)

“Congress is weighing whether to eliminate programs that have helped fewer homeowners than promised. About 1.5 million households have begun trial mortgage modifications through HAMP, down from initial projections of 3 million to 4 million.”

Looking Back:

One year ago, 68 percent of U.S. citizens supported the government’s involvement in the housing market. Fannie Mae announced plans to buy 150,000 to 200,000 delinquent loans from MBS trusts. Economist Jan Hatzius believed we would not see an interest rate increase any time in the near future. Realtors advised that staging is a critical component of selling a 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 calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 1/6/11

Thursday, January 6th, 2011

Today’s News Synopsis:

According to Freddie Mac, rates on 30-year FRMs fell to 4.77% this week. Altos Research reports home prices fell 1.63% in December. Timothy Geithner requested from Congress to increase the national debt limit. The current debt limit is $14.29 trillion, and the nation’s current debt level is just $335 billion short of the limit.

In The News:

Research Institute for Housing America – “A Study of Real Estate Markets in Declining Cities” (1-6-11)

“many places will likely resume growth and fully recover within the next decade or so. This is almost certainly not to be the case for all metropolitan areas. In fact, a number of large metropolitan statistical areas (MSAs) experienced severe recessions during the latter half of the 20th century and prior to the Great Recession and never fully recovered or took many years to do so”

USA Today – “30-year fixed mortgage rate dips to 4.77% average in latest week” (1-6-11)

“Freddie Mac says the average rate on 30-year mortgages dropped to 4.77% from 4.86% the previous week. It hit a 40-year low of 4.17% in November.”

Realty Times – “Consequences of Defaults and Foreclosures” (1-6-11)

“One of the most startling impacts of a foreclosure appears on one’s credit report. Your credit score may plummet by 200 to 300 points. In this economic climate, where credit lending standards are already tightened, you may then find it difficult to do everything from buying a car to renting an apartment. What’s worse is that the notation of foreclosure stays on your report for up to seven years.”

Housing Wire – “Altos: Home prices down 1.63% in December, new listings even lower” (1-6-11)

“Home prices fell 1.63% in December, but new listings are hitting the market well below that, according to analytics firm Altos Research. Prices fell in each of the 27 markets studied by Altos. Prices fell 4.77% in San Francisco — the steepest drop of any area, 3.71% in San Diego”

Housing Wire – “Commercial mortgage modifications become huge trend in just two years” (1-6-11)

“Of all loan modifications in the commercial mortgage industry over the past decade, 96% occurred in the last years, according to Standard & Poor’s. The rating agency said 354 commercial real estate loans with a principal balance $15.6 billion were modified from January through November, up significantly from 216 loans valued at $7.06 billion for all of 2009.”

Housing Wire – “DebtX November CRE loan volume down to 80.3%” (1-6-11)

“The decline in the value of commercial real estate loans in November was due primarily to an increase in Treasury rates”

Housing Wire – “Geithner urges Congress to increase national debt limit” (1-6-11)

“Geithner wrote a letter to Congress Thursday requesting an increase in the federal debt limit. According to his numbers, the current debt limit set last February is $14.29 trillion. As of the writing of the letter, the outstanding debt subject to the limit standards is $13.95 trillion — just $335 billion shy of the maximum.”

Housing Wire – “Equator’s Vella: Short sales set to swell 25% in 2011″ (1-6-11)

“With one in five borrowers underwater on their home and an estimated 1.5 million foreclosures scheduled for 2011, the opportunity for short sales will be better than ever. Investors usually see a 20% to 30% better execution on a short sale versus an REO sale when it comes to loss severity. With the foreclosure volume, current and pending REO inventories, servicers will be pressed to do more short sales in 2011.”

Housing Wire – “New Fannie interactive Web tool provides foreclosure avoidance options” (1-6-11)

“Fannie Mae’s new WaysHome interactive multimedia tool walks homeowners through options if they are struggling to pay the mortgage — even allowing them to select a character and be a part of an interactive video.”

Looking Back:

One year ago, California Governor Schwarzenegger announced a new home buyer tax credit. The Mortgage Bankers Association reported that mortgage applications had increased by .4 percent from Christmas. The FOMC confirmed plans to buy $1.25 trillion in mortgage-backed-securities from Freddie Mac, Fannie Mae and Ginnie Mae. Eugene Ludwig believed that commercial real estate losses would break historical records in 2010.

For m ore information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 12/16/10

Thursday, December 16th, 2010

Today’s News Synopsis:

6,111 new and resale houses and condos were sold in the Bay Area last month, according to MDA DataQuick. Freddie Mac reports the 30-year mortgage rate has rose again to 4.83%. Statistics from CoreLogic show home prices declined 3.93% in October from July. Three members of congress introduced a bill which may put an end to the use of MERS by GSEs.

In The News:

DQNews - “Bay Area November Home Sales, Median Price Down from a Year Ago” (12-16-10)

“A total of 6,111 new and resale houses and condos were sold in the nine-county Bay Area last month. That was down 0.2 percent from 6,122 in October and down 11.2 percent from 6,878 in November 2009, according to MDA DataQuick of San Diego.”

NAHB - “Housing Starts Rise 3.9 Percent in November” (12-16-10)

“Nationwide housing starts rose 3.9 percent in November to a seasonally adjusted annual rate of 555,000 units from an upwardly revised number in the previous month, according to newly released data from the U.S. Commerce Department. This marked the first upward movement in new-home production since August, and was entirely attributable to a nearly 7 percent gain in single-family home building.”

Housing Wire – “Government guarantee expected for one-third of MBS in 2011″ (12-15-10)

“Government-backed bond issuer Ginnie Mae’s share of mortgage-backed securities issuance should reach 32% in 2011, continuing a steady growth seen after the financial crisis of 2008, Deutsche Bank analysts said.”

Housing Wire – “Jobless claims down slightly to 420,000″ (12-16-10)

“The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Dec. 11 fell by 3,000 from the previous week’s upwardly revised figure of 423,000.”

Housing Wire – “Freddie Mac: mortgage interest rates rose again last week” (12-16-10)

“The government-sponsored enterprise said its primary mortgage market survey showed the average rate for a 30-year, fixed mortgage rose to 4.83% for the week ending Thursday from 4.61% a week earlier. The rate is now at the highest level since May. The average rate for a 15-year, fixed mortgage increased to 4.17% from 3.96% the prior week, according to the Freddie Mac survey.”

Housing Wire – “Home prices down for third straight month: CoreLogic” (12-16-10)

“Home prices declined 3.93% in October from the previous three months, the third straight report of declines as any hope for a recovery in early 2011 begins to fade, according to data from CoreLogic (CLGX: 18.26 +1.00%).”

Housing Wire – “Bill aims to end GSE affiliation with MERS” (12-16-10)

“Three congressional representatives recently introduced a bill into the House that would gradually phase out the use of Mortgage Electronic Registration Systems, commonly called MERs, within the government-sponsored enterprises as well as Ginnie Mae.”

Housing Wire – “Foreclosure inventories rise as delinquencies drop in November: LPS” (12-16-10)

“Lender Processing Services (LPS: 30.03 -0.23%) said the delinquency rate for loans that are 30 or more days past due, but not in foreclosure was 9.02% in November, down nearly 3% from October and down 15.6% from November 2009.”

Bloomberg - “Builders Probably Began Work on More U.S. Houses Following October Plunge” (12-16-10)

“Housing starts climbed 6 percent to a 550,000 annual rate, according to the median estimate of 76 economists surveyed by Bloomberg News. Work slumped in October to the slowest pace since April 2009’s record low. Building permits, a proxy of future construction, may have also increased.”

Bloomberg - “Banks Push Fed to Curb Borrowers’ Right to Rescind Mortgages” (12-16-10)

“Mortgage firms are pressing the Federal Reserve to curb homeowners’ right to invalidate loans based on flawed documents — a right consumer groups say is one of the few weapons borrowers have to battle unfair lending.”

Bloomberg - “U.S. Foreclosure Filings Drop to Two-Year Low Amid Lender Delays” (12-16-10)

“A total of 262,339 U.S. properties received default or auction notices or were seized in November, down 21 percent from October and 14 percent from a year earlier, RealtyTrac said in a report today. Those were the biggest monthly and annual declines since the Irvine, California-based data company began reports in January 2005. One in every 492 households got a filing.”

Looking Back:

One year ago, the Wall Street Journal reported that people were increasingly willing to abandon mortgage payments for becoming renters. Housing starts climbed almost 9%. The FDIC offered some reprieve from securities accounting rules for the next year. The Bureau of statistics released their real earnings report stating that average hourly earnings fell by .5%.

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 12/06/10

Monday, December 6th, 2010

Today’s News Synopsis:

The Federal Reserve expects housing starts to reach 600,000 by the end of the year. Fannie Mae is suspending foreclosure evictions from Dec. 20 through Jan. 3, 2011. HUD representative Shaun Donovan claims the Homeless Prevention and Rapid Re-housing Program prevented or ended homelessness for 750,000 Americans.

In The News:

Army Times – “Consumer Watch: Walking away from your mortgage” (12-6-10)

“Nationwide, about 2.5 million homeowners have lost their homes in the last four years, according to the Center for Responsible Lending. Even some homeowners who could afford to make their payments have walked away because their homes have lost so much in value. Meredith says he won’t go that route. ‘I could not in good conscience walk away and dump the burden on the bank, who would then ask the taxpayers for another handout,’ he said.”

Orange County Register – “Calif. housing recovering, coast first” (12-4-10)

“The housing market has begun to stabilize in some of the coastal regions in the state. While credit unions have been willing and able to lend, demand for mortgages has been lean, despite the historically low interest rates. Members are either over leveraged, or concerned about future employment to make such a large purchase. Once individuals feel more secure about their income, they will be much more likely to make long-term purchases.”

Wall Street Journal – “US Housing Market To Rebound In 2011 -Freddie Mac Economist” (12-6-10)

“Macroeconomic factors suggest the U.S. housing market will improve in 2011, Freddie Mac’s chief economist said in a note Monday.”

USA Today - “Bernanke: Economy is fragile ‘very close to the border’” (12-6-10)

“Federal Reserve Chairman Ben Bernanke is stepping up his defense of the Fed’s $600 billion Treasury bond-purchase plan, saying the economy is still struggling to become ‘self-sustaining’ without government help.”

Housing Wire – “Chicago Fed sees housing sector improvement in 2011″ (12-6-10)

“The Fed forecasts that housing starts will reach 600,000 by the end of the fourth quarter of 2010 and increase to a total of 690,000 starts in 2011. The total number of housing starts in 2009 was 550,000.”

Housing Wire – “Fannie Mae to suspend foreclosure evictions for the holidays” (12-6-10)

“Fannie Mae will suspend foreclosure evictions from Dec. 20 through Jan. 3, 2011. The government-sponsored enterprise routinely halts the foreclosure process during the holiday season. Fannie currently holds a 4.56% serious delinquency rate on its mortgage portfolio, totaling more than $798 billion worth of loans as of October.”

Housing Wire - “HUD program keeps 750,000 Americans from homelessness” (12-6-10)

“The U.S. Department of Housing and Urban Development prevented or ended homelessness for 750,000 Americans through its Homelessness Prevention and Rapid Re-housing Program, the department’s secretary Shaun Donovan said Thursday.”

Housing Wire – “MBA says FHA indemnification proposal penalizes responsible mortgage lenders” (12-6-10)

“In October, the FHA proposed a new regulation forcing lenders to reimburse the government for insurance claims on defaulted mortgages that did not meet its guidelines within five years of the endorsement. It would require all new and existing lenders with the ability to insure loans on behalf of the Department of Housing and Urban Development to meet stricter performance standards.”

Bloomberg - “Your Underwater Mortgage Needs a Blow-Up Raft: Caroline Baum” (12-6-10)

“How can such a small sector of the $13.3 trillion economy exert such a strong downward pull on the whole thing? Real residential investment, as it’s formally known in the gross domestic product report, accounted for 2.4 percent of GDP in the third quarter. At its frothiest, in 2005, that share stood at 6.2 percent, a three-decade high.”

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 11/9/10

Tuesday, November 9th, 2010

Today’s News Synopsis:

An opinion survey from the Federal Reserve shows demand for commercial and industrial loans decreased in the third quarter. Budd Bugatch claims housing fell to 2.22% of nominal GDP in the 3rd quarter. Foreclosure inventory increased 1.1% in September, according to LPS.

In The News:

Housing Wire – “Federal Reserve Bank finds lenders slightly easing credit standards” (11-9-10)

“Banking institutions large and small are gradually easing their lending standards due to decreased demand for loans. The Federal Reserve Bank Senior Loan Officer Opinion Survey reported that demand for commercial and industrial loans decreased across the board in the fourth quarter after regaining ground the first half of 2010.”

Housing Wire – “IAS360 house price index fell 0.2% for 3Q” (11-9-10)

“home prices in the Midwest fell 1.4% for the third quarter, declined 0.5% in the West and slid 0.4% in the South. The HPI for the western region, which includes California and Nevada, is down 26.7% from its peak, according to the IAS360.”

Housing Wire – “Panel: Consumer protection bureau may eventually regulate mortgage banking” (11-9-10)

“The Consumer Financial Protection Bureau could be responsible for the regulation of 85% of the mortgage banking industry when supervision responsibilities shift in July 2011.”

Housing Wire – “FDIC proposes changes to assessments for fees to assets from deposits” (11-9-10)

“The Federal Deposit Insurance Corporation approved a regulatory change for basing its fees on assets minus average tangible equity rather than a fee system based on domestic deposits.”

Bloomberg - “U.S. Housing’s Postwar Low Threatens Home Depot: Chart of the Day” (11-9-10)

“U.S. home-improvement retailers face ‘rising headwinds’ as housing investment’s share of the economy falls to a post-World War II low, according to Budd Bugatch, an analyst at Raymond James & Associates Inc. Housing fell to 2.22 percent of nominal GDP in the third quarter from 2.45 percent in the second. The previous low was 2.35 percent, set in the first three months of this year.”

Inman - “Foreclosure inventory rises in September” (11-9-10)

“Foreclosure inventory stood at 3.84 percent of all loans in September, up 3.6 percent from September 2009 and 1.1 percent from August, according to LPS’ monthly Mortgage Monitor report. Nearly 275,500 homes that hadn’t been in the foreclosure process in August started foreclosure in September, down 0.6 percent year-over-year and 2.5 percent month-to-month.”

Orange County Register – “O.C. property index’s 1st gain in 4 years” (11-9-10)

“The Big O Property Index, up for three consecutive quarters, rose 0.02% this summer vs. a year ago. Last gain? A rise at an 1.4% annual rate in summer 2006.”

Looking Back:

One year ago, a survey of 1,500 registered voters showed that most citizens were still pessimistic towards California’s financial future. Default notices doubled in Los Altos, Greenbrae and Alamo from 2008 to 2009. Zillow reported that the number of under water mortgages decreased in the U.S. decreased by 2 percent in the third quarter.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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

Thursday, October 14th, 2010

Today’s News Synopsis:

Multifamily lenders provided 40 less financing for apartment buildings in 2009, according to the MBA. RealtyTrac reports bank repossessions and foreclosure auctions hit record levels in the 3rd quarter. Jobless claims rose 2.8% last week, said the Labor Department. A survey shows that 93% of military homeowners have mortgages compared to just 64% of civilians.

In The News:

Mortgage Bankers Association – “MBA Reports 40 Percent Decline in Multifamily Borrowing in 2009 Among Diverse Lenders and Loan Sizes” (10-14-10)

“In 2009, 2,725 different multifamily lenders provided a total of $52.5 billion in new financing for apartment buildings with five or more units, according to the Mortgage Bankers Association’s (MBA) Annual Report on Multifamily Lending for  2009.  The 2009 dollar volume represents a 40 percent decline from 2008 levels.  The most active 122 lenders represented just four percent of active lenders, but 77 percent of the dollar volume lent.  Three-quarters of the active lenders made five or fewer loans over the course of the year.”

Los Angeles Times – “Freddie Mac: Mortgage rates drop again, now at 1951 levels” (10-14-10)

“Mortgage interest rates continue their descent into record territory, with the 30-year fixed-rate loan dropping to an average of 4.19% this week from 4.27% a week earlier, according to the latest Freddie Mac survey of lender offering rates.”

CNN - “Foreclosure auctions hit record as document crisis unfolds” (10-14-10)

“Bank repossessions and foreclosure auctions hit record levels in the third quarter, RealtyTrac said on Thursday. 372,445 foreclosure auctions were scheduled in July, August and September, while 288,345 properties were repossessed by lenders over the same time period.”

Housing Wire – “Jobless claims rise 2.8%; most analysts expected a decline” (10-14-10)

“Initial jobless claims rose 2.8% last week to 462,000, coming in well above most analysts’ estimates. The Labor Department said the seasonally adjusted figure of initial claims for the week ended Oct. 9 increased by 13,000 from the previous week’s revised figure of 449,000.”

Housing Wire – “TARP oversight panel calls for more transparency after conflicts emerge” (10-14-10)

“In its October report, the Congressional Oversight Panel reviewing the program enacted by President Bush two years ago said private businesses operate 91 different contracts worth up to $434 million under the Troubled Asset Relief Program. The program ended a few weeks ago and the Treasury estimates the final cost to be about $50 billion.”

Housing Wire – “Military members deeper in mortgage debt than average Americans” (10-14-10)

“More military members are paying a mortgage, and more tend to have larger amounts of credit card debt, when compared to the civilian population. The survey shows just more than half of military respondents (51%) report owning a home, compared with 57% of civilians. Nearly all military homeowners (93%) reported having a mortgage, far greater than the 64% among civilians.”

Housing Wire – “Moody’s: CMBS delinquencies up to 8.24% in September” (10-14-10)

“Moody’s Investors Service said the number of delinquencies within commercial mortgage-backed securities rose 14 basis points last month to 8.24%. Analysts said the increase was the smallest since October 2008 and the represents fourth-straight month of modest growth in the national CMBS delinquency rate. Moody’s said there are now 3,971 delinquent mortgages with a total value of $52.07 billion.”

Housing Wire – “Trepp analysts expect CMBS delinquencies to drop after highest month on record” (10-14-10)

“The percentage of delinquent commercial mortgage-backed securities increased in September to the highest rate ever recorded by CMBS data analytics firm Trepp, up 13 basis points to 9.05%. However, this is the smallest month-over-month increase recorded in 2010, and Trepp analysts expect the rate to dip much further in next month’s statistics.”

Bloomberg - “Mortgage Investors Urge State Attorneys General Not to Punish Bondholders” (10-14-10)

“A hasty and ill-formulated legal settlement may harm the investors of mortgage-backed securities, namely retirees, municipalities, government entities, state pension funds, retirement systems, universities, and charitable endowments. Chris Katopis, the Washington-based trade group’s executive director, said today in an e-mailed statement.”

Looking Back:

One year ago, Citigroup and other banks were held accountable for fraudulent loans which costed them more than $688 million. The Mortgage Bankers Association reported that mortgage loan application volume had decreased by 1.8 percent from the previous week.  JP Morgan Chase approved of trial modifications for 90 percent of its borrowers.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 9/21/10

Tuesday, September 21st, 2010

Today’s News Synopsis:

Loan originations increased 25% from 2008, according to the Federal Financial Institutions Examination Council. The Commerce Department reports new home and apartment construction rose 10.5% last month to a seasonally adjusted annual rate of 598,000. Zillow claims interest rates fell again to 4.25%.

In The News:

San Francisco Chronicle - “More mortgage loans – first time since ’05 peak” (9-21-10)

“U.S. mortgage lending rose for the first time in four years in 2009 as a decline in borrowing rates spurred refinancings, according to regulatory data. The number of loans originated climbed 25 percent to 8.95 million from 2008, according to a report released Monday in Washington by the Federal Financial Institutions Examination Council. Refinancings rose 66 percent to 5.76 million, while loans to purchase homes dropped 11 percent to 2.78 million. Home-improvement and multifamily-dwelling loans also fell.”

Los Angeles Times – “Home construction jumps 10.5% in August” (9-21-10)

“Construction of new homes and apartments rose 10.5% in August from July to a seasonally adjusted annual rate of 598,000, the Commerce Department said Tuesday. That’s the highest level since April.”

Housing Wire – “Flattened Ginnie roll rates in 2Q could mean slower prepays: Credit Suisse” (9-21-10)

“The amount of Ginnie Mae-held loans rolling from 60 days to 90 days delinquent slowed in the second quarter, after spiking last year. According to research from Credit Suisse, this could signal slower involuntary prepayments going forward. The Ginnie Mae share of agency fixed-rate issuance dropped to 33% in August, from 36% in July. Its total 30-year gross and net issuances in August were $28.8 billion and $22.7 billion respectively, both down from $31.4 billion and $15.2 billion in July.”

Housing Wire – “CRE investment gearing up, but analysts don’t expect comeback until 2012″ (9-21-10)

“Trouble in the commercial real estate sector is not likely to be resolved until the economy picks up and job creation boosts demand for office, retail, hotel and other commercial properties, according to a Standard & Poor’s commentary released Monday. Even though the market research firm sees a trough in some CRE subsections, overall improvement isn’t expected until at least 2012.”

Housing Wire – “Zillow: 30-year, fixed rates reach another low at 4.25%” (9-21-10)

“Interest rates continue to set all-time lows, as Zillow reported its Mortgage Marketplace showed the average rate for a 30-year, fixed mortgage is currently 4.25%. The real estate information firm said the rate if down seven basis points from 4.32% the week earlier and at the lowest level since the report launched in April 2008.”

Housing Wire – “Home sales level off in August after recent plunge: RE/MAX” (9-20-10)

“August home sales dropped 0.5% after plummeting in July, according to real estate franchise RE/MAX. Home sales are still down 17.9% from August of last year. While some real estate agents reported increased showings, few have translated into closed transactions after the expiration of the homebuyer tax credit at the end of April.”

Bloomberg - “Fed Under Pressure Amid Confusion Over New Easing” (9-21-10)

“Federal Reserve officials are under pressure to avoid creating confusion among investors about any new effort to spur the U.S. recovery. The Federal Open Market Committee, which meets today, triggered a stock selloff with its last statement on Aug. 10 as investors took it as a signal the economy will falter. The Standard & Poor’s 500 Index tumbled 7.1 percent during the two weeks following the statement after reaching a three-month high on Aug. 9. The MSCI World Index fell 7.3 percent.”

Orange County Register – “CA. mortgage defaults climb 4th month in row” (9-21-10)

“Notices of default filings in California, the first step in the foreclosure process, climbed for the 4th month in a row in August, up by 16.6% from July and 16% from August, 2009, ForeclosureRadar reports. Homes in the state that went back to lenders were up 20% over July and 0.8% from August last year. Foreclosure sale cancellations were down 11%. The inventory of bank-owned homes went up 3.63% from last month and 8.28% year over year.”

Orange County Register – “Fed keeping cheap money policy” (9-21-10)

“the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls. Housing starts are at a depressed level. Bank lending has continued to contract, but at a reduced rate in recent months.”

Inman - “Survey: Home-price outlooks sour in Q3″ (9-21-10)

“Ninety percent of real estate agents and brokers expect home prices to either fall or stay the same over the next six months, according to a survey by online real estate marketing site HomeGain. HomeGain conducted the survey from Sept. 7-14, with participation from more than 1,100 real estate agents and brokers and 2,600 homeowners nationwide.”

Looking Back:

One year ago, the federal government claimed it had plans to “tinker” with mortgage interest reporting. First American estimated that California had approximately $30 billion dollars worth of bad home loans. A review of over 24 million credit files showed that people with good credit scores were more likely to ‘strategically default’. Lennar Corp. forecasted a profitable year, despite a bad 3rd quarter.

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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186-TNG Radio – Daniel Phelan 8-7-10

Friday, August 6th, 2010

Daniel-Phelan

Daniel Phelan

CEO of Pacific Southwest Realty Services


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September 17th, 2010, The Norris Group returns with its award winning event I Survived Real Estate 2010. The Norris Group has assembled an incredible line up of industry experts to discuss the state of REO from the inside. Topics will include regulatory intervention and aftermath, bulk buying, myths and facts, and opportunities emerging for real estate professionals. 100 percent of the proceeds support the Orange County affiliate of Susan G. Komen for the Cure. This event would not be possible without generous help from the following platinum partners: Foreclosure Radar and Sean O’Toole, the San Diego Creative Real Estate InvestorsAssociation and Bill Tan, Investors Workshops and Shawn Watkins and Angel Bronsgeest, Invest Club for Women and Iris Veneracion and Bobby Alexander, San Jose Real Estate Investors Association and Geraldine Barry, Claudia Buys Houses, Frye Wiles, MVT Productions, and White House Catering.

This week Bruce is joined by Daniel Phelan. Daniel is the CEO of Pacific Southwest Realty Services. He is responsible for this company’s mortgage operations. Pacific Southwest Realty Services is an investment firm focused on commercial real estate. It represents and advises both real estate clients and institutional investors in debt. It is involved in equity placement, strategic planning, property sales and loan administration.

In 2006, Daniel’s company was heavily involved in the financing of commercial real estate. His company financed $1.5 billion of commercial real estate per year for every year of the boom.

Daniel does not think that investors perceived a high level of risk in the prices they were paying for real estate during the boom. Prices had been steadily increasing since July 1993. Commercial real estate had a continuous growth pattern all the way to 2007. If you had only been in the business for 15 years and had only seen positive growth, then you probably wouldn’t feel at risk.

The lending side was probably looking at the boom similarly. There was a lot of competition, because Wall Street entered the market. There was a tremendous amount of debt capital in the market, and it was extremely competitively priced. These prices made real estate investments that much more enticing. People saw the need to get their capital invested in some form, and commercial real estate was perceived to be a safe investment.

In 2006 to 2007, down payments were reduced because of the confidence of the market. Borrowers were getting into commercial properties with only 20 percent. Historically, you could probably get most properties financed with 25 to 30 percent down. However, 75 percent is considered to be a more appropriate and safe number.

There are two tiers of debt. Most banks is recourse, but most non-bank debt is nonrecourse. 99.9 percent of the debt for life insurance companies and pension funds is nonrecourse. Because Daniel’s company works with these kinds of firms, they could only look to the real estate for satisfaction of a debt following a default. From 2005 to 2007, many banks backed off their recourse loans and went nonrecourse.

The source of capital during the boom came from portfolio lenders, such as life insurance companies and banks, and nonportfolio lenders, such as securitized lenders and Wall Street lenders. If you were trying to accomplish high loan to value with lower rates, then you probably got involved in the commercial mortgage backed securities market. You would expect a rate of 110-120 over treasuries. Those loans would be pooled into $2 billion pools, and then sold on Wall Street.

Mortgages made near 2006 are not doing well right now. Underwriting standards were very loose at that time. The default rates for those issuances are above 5 percent, and sometimes above 10 percent.

Mezzanine financing can be compared to second trust deed. It is a debt placed behind a first trust deed. It is used for taking cash out of a property, cover tenant improvements, or buy out existing partners to recapitalize the partnership.

During the boom, mezzanine debt could be taken at a 7 to 8 percent rate on the low end. The mezzanine debt today is going for above 10 percent. It is not available for the same loan to value rate. In 2006, you could get 90 percent loan to value. Today, you would be lucky if you got mezzanine debt for 65 percent loan to value. You may not be able to get it at all.

If you intend to occupy a commercial building, you could get 90 percent financing from a bank loan. This is only available to owner occupants, and it is only available in a purchase situation, not a refinance situation. If you were buying a multi-tenant investment property, you probably would get financing from life insurance companies. Banks are beginning to come back to the commercial investment market. With these deals, banks are looking for a full relationship with bank accounts and operating accounts. During the second quarter, the commercial mortgage backed securities market starting coming back. However, this market is not coming back quickly. Daniel’s company funded its first two cmbs loans since 2007.

Daniel’s company always looks at the operating history and income of a property, and then he makes a reasonable expectation of how well that property will operate over time. The projection for those properties is typically not very good. In 2006-07 we had not been hit by unemployment. Most tenants were performing well, and occupancy rates were above 90 percent.

Many commercial loans are coming due in 2012. These loans were underwritten in 2002. These loans are going to cause a big problem. In 2002, underwriting standards were not that “out of wack”. Prices have come down a lot, but they are still greater than what they were in 2002. Daniel think there is plenty of capital to refinance the debt on those properties, and in many cases, lenders are willing to roll over those loans. The bigger problem comes in during 2014 to 2017. During these years, you will have loans on properties with significantly diminished values. At that time, you may start having tenant default issues.

Construction on commercial real estate is not going to perform well. Daniel does not know of any bank that did a commercial construction loan in 2008-09. However, there are some banks now that are willing to loan on a multifamily property now.

Residential real estate is beginning to experience a large number of strategic defaults. Commercial loans are also beginning to default, but not as badly. Commercial property owners can make their payments so long as 70 percent of the tenants are making their payments. Commercial loans are made based on the ability of a property to make income. The commercial property owners that will experience difficulty are the ones that have let go of workers. They may have a large amount of space, but are only using a small portion of it. When their leases come due, these owners will probably move out to a smaller space. This will hurt larger commercial properties.

Most cap rates during the peak were around 6 to 7 percent. For multifamily properties and apartments, cap rates were around 5 percent. As of last year, most cap rates have moved up to 8 to 9 percent. The reason why we have not experienced a dramatic change in cap rates is because of Fannie and Freddy’s involvement.

Daniel believes we are going to see more problems in 2010 rather than improvement. Sales are going to start again, but they are going to have to pay 35 percent down rather than 25 percent.

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.

Thank you for being a Gold Sponsor for I Survived Real Estate 2010: Delmae Properties, Elite Auctions, Entrust California, Inland Empire Investors Forum, Keystone CPA, Las Brisas Escrow, Leivas Financial Services, Mike Cantu, North San Diego Real Estate Investors Association, Northern California Real Estate Investors Association, Personal Real Estate Investor Magazine, Realty 411 Magazine, San Jose Real Estate Investor Association, Tony Alvarez, and Westin South Coast Plaza.

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