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The Norris Group Real Estate News Roundup 3/12/10

Friday, March 12th, 2010

Today’s News Synopsis:

The FDIC sold $1.8bn of residential mortgage-backed securities. The Federal Reserve bought a total of $10bn worth of mbs. More than 25 percent of the home owners who received trial modifications have been removed from Obama’s program. Approximately 462,000 new unemployment claims were made last week.

In The News:

Housing Wire – “FDIC Details $1.8bn Structured Financing Transaction” (3-12-10)

“The Federal Deposit Insurance Corp. (FDIC) today closed on a sale of notes backed by residential mortgage-backed securities (RMBS) from seven failed bank receiverships. The news of the closing, summarized in an FDIC press release today, marks the first official release of information on $1.8bn of structured notes that roadshowed and priced in recent weeks.”

Housing Wire – “BofA Makes 21,000 HAMP Modifications Permanent” (3-12-10)

“Bank of America (BAC: 16.985 -0.79%) reported 21,000 permanent modifications under the Home Affordable Modification Program (HAMP) through February. The US Treasury Department launched HAMP in March 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. BofA faced industry criticism for reporting 98 permanent modifications through November 2009.”

Housing Wire – “Fed MBS Purchases 98% Complete with Another $10bn” (3-12-10)

“The New York Federal Reserve Bank bought another $10bn of agency mortgage-backed securities (MBS) in the week ending March 10 as the $1.25trn program, now 98% complete, winds down to a close. The Fed bought $29.4bn gross of MBS — $4.4bn Freddie Mac (FRE: 1.2801 -1.53%) MBS, $25bn Fannie Mae (FNM: 1.0701 -2.72%) MBS, and no Ginnie Mae MBS. After reporting $19.4bn of MBS sales through the same week, the Fed’s net purchases came to $10bn, level with last week’s agency MBS buys.”

Bloomberg - “More Than 250,000 Borrowers Dropped From U.S. Modification Plan” (3-12-10)

“More than 250,000 of the 1 million borrowers who have received trial loan modifications through the Obama administration’s chief foreclosure prevention plan have either dropped out or been removed from the program through February, the Treasury Department said.”

Inman - “Credit Starvation Fallout” (3-12-10)

“Overall retail sales have risen 6 percent since the pit one year ago, but are still 6.5 percent below 2008. New unemployment claims are still elevated, running 462,000 last week.”

Inman - “NAR: Don’t rein in FHA” (3-12-10)

“FHA insured nearly 30 percent of purchase loans in 2009, including more than half of mortgages taken out by first-time homeowners, and NAR also wants lawmakers to make temporary increases in FHA loan limits in costly housing markets permanent. But rising claims have eroded FHA’s capital reserves below statutory limits, forcing the program’s administrators to tighten underwriting requirements and raise upfront mortgage insurance premiums.”

Orange County Register – “85,000 O.C. real estate jobs gone” (3-12-10)

“In January, Orange County real estate and finance bosses employed 199,200 workers, 24,600 below 2009 levels and 85,100 less than the recent cycle’s peak, by the state Employment Development Dept.’s freshly revised math.”

Looking Back:

One year ago, the MBA reported that commercial and residential mortgage delinquencies increased during the 4th quarter of 2008. Riverside and San Bernardino County were ranked as the 6th highest foreclosure market. U.S. foreclosures increased by 30 percent in one month. Freddie Mac’s statistics showed that 30-year mortgage rates decreased to 5.03 percent.

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The Norris Group Real Estate News Roundup 3/2/10

Tuesday, March 2nd, 2010

Today’s News Synopsis:

Based on results from a recent poll, 68 percent of U.S. citizens support the government’s involvement in the housing market. Fannie Mae announced plans to buy 150,000 to 200,000 delinquent loans from MBS trusts this month. Economist Jan Hatzius believes that we will not see an interest rate increase any time in the near future. Realtors advise that staging is a critical component of selling a home.

In The News:

NAHB – “Poll Shows Strong Support for Government Housing Initiatives” (3-1-10)

“Americans remain strongly committed to federal support for home buyers, according to a recent survey of U.S. households. Roughly 68 percent of those polled said the government should continue to support housing, and 65 percent believe the government should be doing more to keep families from losing their homes to foreclosure.”

Press Enterprise – “New Homes sip, don’t gulp, water” (3-2-10)

“The study found that homes built in 2009 consume 20 percent less water than homes built in 1990, with each house saving on average over 15,000 gallons a year. Also homes built to 2011 standards will further lower indoor water use by 21 percent, saving another 12,000 gallons a year.”

Housing Wire - “Fannie to Buy up to 200,000 Delinquent Mortgages in March” (3-2-10)

“Government-sponsored enterprise (GSE) Fannie Mae (FNM: 1.00 +1.01%) said Monday it expects to purchase from 150,000 to 200,000 delinquent loans out of single-family mortgage-backed security (MBS) trusts during March.”

Bloomberg – “Home-Price Drop in U.S. Supports Low-Rate Outlook: Chart of Day” (3-2-10)

“A possible relapse in home prices that had Fed policy makers concerned late last year may now be coming to pass, underscoring forecasts by economists such as Jan Hatzius that an interest-rate increase is a long way off.”

Inman – “Real estate Darwinism” (3-2-10)

“Today’s brokers and agents who survive and lead us out of this current mess are going to be those most willing to change. They will share three key attributes: they will be the most competent in their craft, utilize all available technology, and be the most dedicated to customer service. Undoubtedly, these changes will be fundamental. Externally, technology will continue to drive our industry change, and internally, change will be in the form of technology and reduced commissions. Sounds simple, but the transformation to the brokerage of 2020 will be drastic.”

Realty Times – “Focusing on the Median Price Can Be Misleading” (3-2-10)

“Many observers have noted that the rise in the median does not necessarily indicate a rise in prices in general. Rather, it is reflective of more activity at higher price ranges than had been experienced in the recent past. In many market areas, for the past year to year and-a-half the greatest activity – practically frenzy in some areas – has been at the bottom of the price ranges. This is not a surprise. Smaller condominiums and starter homes were generally what constituted the first wave of foreclosures on loans that never should have happened. More recently, though, the number of sales has increased in higher price ranges. As the effects of high unemployment and a staggering economy spread throughout the land, there are more sales – many of them distressed sales – of larger homes, ones that people expected to live in a long time.”

Realty Times – “Sellers: Staging is a Must” (3-2-10)

“As a seller, you want your home to make a positive first impression. In order to do this, you repair, clean, and strategize marketing for your open houses, but home staging takes it one step further. It allows the buyer both the mental space to imagine their own belongings in the rooms and the ability to get excited about the life they could have in your home.”

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The Norris Group Real Estate News Roundup 2/23/10

Tuesday, February 23rd, 2010

Today’s News Synopsis:

The NAR predicts that the commercial real estate market will not recover until after 2011. In California, single family home sales decreased by 3 percent during January. The Standard & Poor’s index shows that national home prices increased slightly during December. 702 banks made the ‘Problem List’ for the FDIC in 2009.

In The News:

NAR - “No Meaningful Recovery in Commercial Real Estate Before 2011″ (2-23-10)

“Lawrence Yun, NAR chief economist, said commercial real estate almost always lags the economy. ‘Because of the lingering impact from the deep recession over the past two years, vacancy rates will trend higher and many commercial property owners will need to make rent concessions,’ he said.”

CAR - “January sales and price report” (2-23-10)

“Existing, single-family home sales decreased 3 percent in January to a seasonally adjusted rate of 539,040 units on an annualized basis compared with December 2009. The statewide median price of an existing single-family home decreased 6.3 percent in January to $287,440, compared with December 2009. C.A.R.’s Unsold Inventory Index fell to 5.8 months in January, compared with 7.3 months in January 2009.

Los Angeles Times – “Home prices show small gain in December” (2-23-10)

“The Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas increased 0.3% from November on a seasonally adjusted basis, with 14 cities posting gains. Compared with a year earlier, the index was down 3.1% in December, but the year-to-year rate of decline moderated in all 20 cities.”

Housing Wire – “FDIC ‘Problem’ Banks Increased 27% in Q409″ (2-23-10)

“By the end of 2009, 702 banks made the ‘Problem List’ for the Federal Deposit Insurance Corp. (FDIC), a marked increase of 27% from 552 at the end of Q309. Additionally, the total amount of assets of insured institutions increased $137.2bn to $13.7trn in Q409. Bank investments in mortgage-backed securities (MBS) also increased by $44.8bn, overall, to $1.4trn.”

Housing Wire – “Lowe’s Profits Top $200m for Q409″ (2-23-10)

“Lowe’s Companies (LOW: 22.81 -1.13%), the world’s second largest home improvement retailer, reported profits of $205m, or $0.14 per share, for its fiscal fourth quarter ending January 29. The Q409 results are up 26.5% from one year ago, when Q408 net earnings were $162m, or $0.11 per share. For the fiscal year ending January 29, 2010, net earnings were $1.78bn, or $1.21 per share, down 18.8% from one year ago, when North Carolina-based Lowe’s earned $2.195bn. In Q309, Lowe’s reported net earnings of $344m.”

Housing Wire – “11.3m Homeowners Now Underwater: First American” (2-23-10)

“11.3m homeowners now owe more on their mortgages than the value of their home at the end of Q409, with the Sand States taking four of the top five negative equity, or underwater, markets according to research released by First American CoreLogic.”

MGIC - “MGIC to Lower Mortgage Insurance Rates for Good Credit Borrowers” (2-23-10)

“The new rates will be lower for borrowers with a credit score of 720 or greater and higher for borrowers with credit scores between 620 and 679. No change is expected for those with a score between 680 and 719, according to a form 8-K filed today with the Securities Exchange Commission.”

Housing Wire – “Home Depot Posts $342m Q4 Profit” (2-23-10)

“Home improvement retailer Home Depot (HD: 30.75 +1.42%) reported a profit of $342m, or $0.20 per share, for its fiscal year fourth quarter ending January 31. That’s an improvement from last year’s fiscal fourth quarter, when Home Depot lost $54m, or $0.03 per share. But it’s lower than Home Depot’s Q309 net earnings of $689m, or $0.41 per share. Home Depot said its sales performance was driven by gains in kitchen and bath, paint, flooring and plumbing as well as its international businesses.”

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The Norris Group Real Estate News Roundup 2/1/10

Monday, February 1st, 2010

Today’s News Synopsis:

The MBA reported there is a $1.45 trillion balance of outstanding mortgages held by non-bank investors. SIGTARP predicted a second housing bubble. Fannie Mae’s mortgage delinquency rate increased to5.29% in November 2009. U.S. home construction spending decreased by 2.7 percent in December.

In The News:

Mortgage Bankers Association - “Only 13 Percent of Non-Bank Commercial/Multifamily Mortgage Debt to Mature in 2010; Seven Percent in 2011″ (2-1-10)

“The Mortgage Bankers Association (MBA) today released the results of its 2009 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The survey indicates that the volume of commercial and multifamily mortgage debt maturing in 2010 and 2011 is relatively low.  Of the $1.45 trillion balance of outstanding mortgages held by non-bank investors, only 13 percent of the total ($183.9 billion) will mature in 2010 and 7 percent ($99.8 billion) in 2011.  The survey also found that maturities vary considerably by the type of investor holding the loan.”

Mortgage Bankers Association – “Wells Fargo/Wachovia, PNC/Midland and Berkadia Lead National Rankings of Commercial/Multifamily Servicing Volumes” (2-1-10)

“The Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers as of the end of December 31, 2009.  On top of the list of firms is Wells Fargo/Wachovia Bank with $473.8 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $322.9 billion, Berkadia Commercial Mortgage with $217.9 billion, Bank of America Merrill Lynch with $131.7 billion, KeyBank Real Estate Capital with $128.5 billion, and GEMSA Loan Services LP with $102.3 billion.”

Housing Wire – “SIGTARP Warns of Second Housing Bubble” (2-1-10)

“The Special Inspector General for the Troubled Asset Relief Program (SIGTARP), which oversees the federal government’s economic recovery program, called for reform to prevent government bailouts in the future and warned of a government-induced second housing bubble.”

Housing Wire – “Officials Contend FHA is Going to be OK” (2-1-10)

“Despite a huge growth in business over the past few years, the Federal Housing Administration (FHA) says its huge portfolio, now worth $750bn, is safely managed as the firm becomes comfortable with dealing with risk.”

Housing Wire - “VIEWPOINT: Waiting for the Fed to Withdraw” (2-1-10)

“The Fed will end the program by March 31 at $1.25trn. There is still chatter, however, about what circumstances would prompt the Fed to resume MBS purchases after March 31. It boils down to two things: a substantial re-weakening in home sales and prices or an excessive spike in mortgage rates.”

Housing Wire – “Fannie Mae Serious Mortgage Delinquencies Rise Above 5%” (2-1-10)

“The government-sponsored enterprise (GSE) Fannie Mae (FNM: 1.03 +7.29%) reported a serious delinquency rate for its mortgage portfolio of 5.29% in November 2009, the latest month of data, the highest in recent memory. That number grew from 4.98% in October and more than doubled the 2.13% in November 2008, according to its monthly summary.”

Bloomberg - “MetLife Cut by Fitch on Commercial Real Estate Losses” (2-1-10)

“MetLife Inc., the largest U.S. life insurer, was downgraded by Fitch Ratings on the prospect of losses tied to investments including commercial real estate holdings.”

Inman - “Home construction down in December” (2-1-10)

“The rate of U.S. home construction spending nationwide fell year-over-year and month-to-month in December, according to a report released today by the U.S. Census Bureau of the Department of Commerce. Spending for December dropped to a seasonally adjusted annual rate of $268.7 billion, a 2.7 percent drop from $276.2 billion the month before, and a 10.3 percent drop from $299.4 billion in December 2008. This rate is a projection of a monthly spending total over a 12-month period, adjusted to reflect typical seasonal fluctuations in construction activity.”

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The Norris Group Real Estate News Roundup 1/27/10

Wednesday, January 27th, 2010

Today’s News Synopsis:

According to MDA DataQuick, 84,568 Notices of Default were recorded in California during the 4th quarter of 2009. The MBA’s weekly survey shows that mortgage application volume decreased 10.9 percent from last week. The Commerce Department reports that new home sales decreased by 7.6 percent last month. The Federal Reserve claims it will stick to its plan to end the $1.25 trillion program of mortgage-debt purchases in March.

In The News:

CBIA – “Protect Your Model Homes” (1-27-10)

“Neighbors are the first and strongest line of defense in neighborhood security. If they can put a face to your model home, they will be much more likely to help protect you. Bring them gift baskets, shake hands and be respectful. Let them know that you’d appreciate if they’d call the police if they notice anyone at the model home after dark.”

DQNews – “Another Drop in California Mortgage Defaults” (1-27-10)

“A total of 84,568 Notices of Default (”NODs”) were recorded at county recorder offices during the October-to-December period. That was down 24.3 percent from 111,689 for the prior quarter, and up 12.4 percent from 75,230 in fourth-quarter 2008, according to San Diego-based MDA DataQuick.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (1-27-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 22, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 10.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 10.1 percent compared with the previous week and decreased 19.8 percent compared with the same week one year earlier.”

Housing Wire – “BofA First to Join HAMP Program for Second Liens” (1-27-10)

“Bank of America (BAC: 14.975 +1.39%) signed the first agreement to participate in the second-lien mortgage modification initiative under the Home Affordable Modification Program (HAMP), the bank confirmed Tuesday afternoon.”

Bloomberg – “U.S. May Retool Loan Program for Underwater Borrowers” (1-27-10)

“The changes would be at least the third lease on life for the program, which began in October 2008 during the Bush administration and has so far helped just 96 of the 400,000 homeowners originally targeted.”

Bloomberg – “U.S. Economy: Sales of New Homes Fall, Capping Worst Year Ever” (1-27-10)

“Sales of new homes in the U.S. unexpectedly dropped in December, capping the worst year on record and signaling the government’s tax-credit extension has yet to shore up demand. Purchases declined 7.6 percent to an annual pace of 342,000, marking the fourth decrease in the past five months, the Commerce Department said today in Washington. For all of 2009, sales declined 23 percent to 374,000, the lowest level since records began in 1963.”

Bloomberg – “S&P, Moody’s Win Dismissal of Claims Over Mortgage Securities” (1-27-10)

“Standard & Poor’s and Moody’s Corp. won dismissal of a lawsuit seeking to hold them responsible for defrauding investors who bought about $100 billion of mortgage- backed securities.”

Bloomberg – “Fed May Take Risk MBS Program End Won’t Hurt Housing” (1-27-10)

“The Federal Reserve may take a chance the housing market can stage a comeback without its support by announcing today it will stick to the plan to end a $1.25 trillion program of mortgage-debt purchases in March.”

Looking Back:

One year ago, MDA DataQuick reported that 75,230 default notices had been sent to California homeowners during the 4th quarter of 2008. The S&P Index showed that home prices fell 18.2 percent within two months. C.A.R. reported that Orange County home sales increased by 13.5 percent in one month.

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The Norris Group Real Estate News Roundup 1/15/10

Friday, January 15th, 2010

Today’s News Synopsis:

Statistics from 10 primary U.S. cities show that home prices declined by 1 percent. ABA expects economic growth to increase at 3.1 percent through 2010. The U.S. Treasury Department reports that 66,465 permanent modifications were made in December.  Chris Thornberg forecasts that home prices will dip again in 2011.

In The News:

Housing Wire – “JP Morgan Says Sell Mortgage Bonds as Fed Snaps Up Record MBS” (1-15-10)

“The spread of mortgage-backed securities (MBS) bonds yields to Treasuries is tight and likely to remain tight in the near-term, but swap spreads are currently 5-10 bps too narrow to greatly entice private investors, according to a JP Morgan Securities conference call on MBS and asset-backed securities (ABS).While private investors largely hold on the buy side, the government continues to buy up agency MBS as part of its $1.25trn agency MBS-purchase program.”

Housing Wire – “House List Prices Down 1% in December: Altos” (1-15-10)

“Altos Research’s listing price index declined 1% in December and 1.4% during Q409, but for the year, the 10-city composite price index was up 5.2%, the company said, adding it projects asking prices to continue to decline during the winter 2010 months.”

Housing Wire – “ABA Expects Economic Recovery Will Fuel Job Growth in 2010″ (1-15-10)

“High unemployment and constrained consumer spending will keep the speed of recovery in check, but ABA economists indicated real gross domestic product (GDP) will grow at an annualized rate of 3.1% throughout 2010. It’s half the historic rate of GDP growth seen after previous deep recessions, leaving the unemployment rate fairly high – but below 10% – at year-end.”

Housing Wire – “HAMP Servicers Permanently Modify More Than 66,000 Mortgages” (1-15-10)

“Servicers participating in the Home Affordable Modification Program (HAMP) completed 66,465 permanent modifications through December, according to a report from the US Treasury Department. It’s more than double the 31,382 permanent modifications reported through the month of November. More than 40,000 more active modifications need only the borrowers signature to become permanent, totaling 112,521 permanent modifications approved by the servicers.”

Housing Wire – “JP Morgan Posts Q4 Profit Despite Mortgage Losses” (1-15-10)

“JP Morgan said it made approximately 600,000 mortgage modification offers to homeowners and approved 120,000 modifications during 2009.”

Housing Wire – “Treasury Raises Cap on HAMP to $35.5bn” (1-15-10)

“The US Treasury Department raised the total amount of potential capped incentive payments for the Home Affordable Modification Program (HAMP) from $27.7bn to $35.5bn, according to the latest Troubled Asset Relief Program (TARP) report.”

Bloomberg - “U.S. REITs Poised to Boost Dividends After Raising $33 Billion” (1-15-10)

“A dozen U.S. real estate investment trusts, part of an industry that raised $33 billion last year, likely will increase their next quarterly dividends. Public Storage, Annaly Capital Management Inc., and Inland Real Estate Corp. are among those that may boost payouts, data compiled by Bloomberg show. Vornado Realty Trust said this week it would resume paying its dividend fully in cash after a year of issuing it partially in stock. ”

Inman - “RPR courting MLSs” (1-15-10)

“By promising not to compete with MLSs — and allowing them an opportunity to make a quick exit from RPR if they aren’t satisfied with the results — company executives say they are out to sign up half the nation’s roughly 900 MLSs by the end of the year.”

Orange County Register – “Home sales, prices seen falling in 2011″ (1-15-10)

“Orange County-based homebuilders were told Thursday that the recession may be over, but the future for the economy and the housing industry remains uncertain. As if to underscore that point, economist Chris Thornberg released a forecast projecting that after modest gains this year, home sales and prices will dip again in 2011 because of rising foreclosures and interest rates.”

Looking Back:

One year ago, the NAR announced that sales on homes priced above $750,000 had decreased by nearly 50 percent. The rate for 30-year fixed mortgages dropped below 5 percent. The CBIA claimed that new home sales in California were “glacially slow”. Statistics from the Federal Reserve showed that jobless claims were rising.

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The Norris Group Real Estate News Roundup 1/8/10

Friday, January 8th, 2010

Today’s News Synopsis:

Economists are criticizing Gov. Schwarzenegger’s $10,000 homebuyer tax credt and claiming it to be a waste of money. According to Amherst Securities Group, default and prepayment rates on mortgage-backed-securities remained consistent from October through November. Colony Capital Acquisitions bought 1,200 commercial mortgages from the FDIC. Multiple appraisal institutions filed complaints to the Department of the Interior regarding the absence of a qualified Chief Appraiser.

In The News:

Sacramento Bee – “Home Front: Some economists not buying proposed homebuyer tax credit” (1-8-10)

“Gov. Arnold Schwarzenegger’s proposed new $10,000 homebuyer tax credit is thrilling the real estate universe, but don’t think it’s a done deal. Opponents, who include economists and advocacy groups, are weighing in. Their point: it’s a poor use of money in a state that’s whacking community college budgets and health programs for poor kids”

Washington Post – “FDIC considers plan to penalize banks whose pay practices encourage risky moves” (1-8-10)

“The Federal Deposit Insurance Corp. is considering financial penalties for banks whose pay practices encourage reckless behavior, potentially opening a new front in the federal government’s effort to reshape the way bankers are paid, according to people familiar with the matter. Officials at the FDIC and other federal agencies are concerned that some banks reward executives for increasing revenues and profits in the short term even if those executives also are increasing the company’s risk of losses in the long term.”

Housing Wire – “Settling the Chinese Drywall Fight” (1-8-10)

“Homeowners and builders are facing difficulties seeking recourse from manufacturers of a toxic drywall that’s been alleged to emit sulfur fumes, causing damage to heating, ventilation and air conditioning (HVAC) components and health problems ranging from watery eyes to respiratory issues. The problem? It’s difficult for plaintiffs to serve foreign manufacturers in US courts. In this case, the problem with the manufacturers of Chinese drywall is exactly what you’d expect: the manufacturers are in China.”

Housing Wire – “Redefault Rates ‘Tragic’, Says Amherst” (1-8-10)

“According to Amherst Securities Group, default and prepayment rates on non-agency, private-label mortgage-backed securities (MBS) were constant in November. However, re-performance rates, where payments return to less than two months delinquent, were down and re-default rates ‘tragic’ in November, according to market commentary provided by the firm.”

Housing Wire – “Carlton Selling $307M Distressed Asset Portfolio” (1-8-10)

“Carlton Advisory Services is selling a portfolio of non-performing loans and real estate owned (REO) assets worth a combined $307m. The portfolio includes office, industrial, retail, multi-family, assisted-living facility, and self-storage assets located across 24 states. The New York-based firm said its services were retained by the commercial mortgage-backed securitization (CMBS) trusts that currently hold the assets.”

Housing Wire – “FDIC Sells Equity Stake in $1bn Portfolio of Distressed CRE Loans” (1-8-10)

“Colony Capital Acquisitions won the bidding process on a sale of equity interest in 1,200 commercial mortgages the Federal Deposit Insurance Corp. (FDIC) seized from depository institutions that failed within the past 18 months. FDIC created a limited liability company, called a multibank structured transaction, to hold commercial real estate assets from 22 failed bank receiverships. As winner of the bidding process, Los Angeles-based Colony Capital purchases a 40% ownership interest in the company.”

Housing Wire – “Call for Chief Appraiser Gains Momentum” (1-8-10)

“A handful of appraiser organizations joined together Thursday to send a letter to the US Department of the Interior, urging the hire of a chief appraiser. The groups – the Appraisal Institute, the American Society of Appraisers, the American Society of Farm Managers and Rural Appraisers and the National Association of Independent Fee Appraisers – noted a December report (download here) from the Interior Department’s Inspector General directs the filling of such a position, which has not been filled by qualified executive in almost three years.”

Housing Wire – “Fed’s MBS Purchases Slow and Spreads Hold, For Now” (1-8-10)

“The Federal Reserve Bank of New York bought $12bn of mortgage-backed securities (MBS) from mortgage giants Freddie Mac (FRE: 1.45 -3.33%), Fannie Mae (FNM: 1.15 -2.54%) and Ginnie Mae in the week ending January 8.”

Bloomberg - “Fed Won’t Raise Until After Jobless Rate Peaks, Crescenzi Says” (1-8-10)

“The Federal Reserve won’t raise its target rate for overnight loans between banks until many months after unemployment peaks, according to Pacific Investment Management Co.’s Tony Crescenzi.”

Bloomberg - “U.S. Office Vacancies Climb to 15-Year High on Employment Cuts” (1-8-10)

“Office vacancies in the U.S. surged to a 15-year high in the fourth quarter and rents fell the most on record as the deepest recession in more than half a century slashed demand for commercial space, according to Reis Inc. The vacancy rate climbed to 17 percent from 14.5 percent a year earlier, the New York-based research company said. Effective rents, the amount tenants actually pay landlords, dropped 8.9 percent, the biggest year-over-year decline since Reis began tracking the data in 1980.”

Inman - “Economy: Bad is the new good” (1-8-10)

“A renewed, two-group consensus drove the jump: The economy is in a solid recovery, or even if it isn’t, immense Treasury borrowing will force rates higher. Both groups agree that the Fed should stop its assistance, either because the economy no longer needs it, or because even if the economy does need help, to continue assistance would produce inflation. I think this consensus is mistaken. There is no meaningful recovery under way, and the Fed has already pulled up short. More data like today’s will add to policymaking tension, force the administration’s hand, and soon have the Fed back to buying mortgages, Treasurys or both.”

Inman - “Confidence slips among agents, brokers” (1-8-10)

“Confidence among real estate agents and brokers dipped in December after a heady rise in November, according to a monthly survey conducted by real estate tech company Point2 Technologies.”

Looking Back:

One year ago, Fannie Mae and Freddie Mac decided to halt all foreclosure sales and evictions until January 9, 2009.  A panel of economists predicted that home sales would not increase, despite the Federal Reserve’s attempts to lower interest rates.  Consumer borrower dropped by $7.8 billion last November.

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The Norris Group Real Estate News Roundup 1/6/10

Wednesday, January 6th, 2010

Today’s News Synopsis:

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

In The News:

CBIA - “Homebuilders Applaud Governor Schwarzenegger for Prioritizing Jobs, Economic Recovery and Housing in State of the State Address” (1-6-10)

“Enacting a new homebuyer tax credit and streamlining the building process would definitely help continue that positive momentum and help our economy recover more quickly.”

Mortgage Bankers Association - “Mortgage Applications Drop the Week of Christmas and Remain Flat the Week After in Latest MBA Weekly Surveys” (1-6-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the weeks ending December 25, 2009 and January 1, 2010. For the week ending December 25, 2009, the Market Composite Index, a measure of mortgage loan application volume, decreased 22.8 percent on a seasonally adjusted basis from the prior week. For the week ending January 1, 2010, this index  increased 0.5 percent on a seasonally adjusted basis.  Both weeks’ results include an adjustment to account for the Christmas and New Year’s Day holidays. On an unadjusted basis, the Index decreased 46.9 percent the week before Christmas and increased 0.4 percent the week after.”

Housing Wire - “FOMC Eyes Extending Scope of MBS Purchases” (1-6-10)

“The Federal Open Market Committee, in its mid-December meeting, considered extending and expanding its initiatives to buy assets from mortgage agencies Fannie Mae (FNM: 1.10 -4.35%), Freddie Mac (FRE: 1.38 -3.50%) and Ginnie Mae. The FOMC also confirmed plans to buy $1.25trn of agency mortgage-backed securities (MBS) and $175bn of agency debt by the end of Q110, according to minutes released Wednesday.”

Housing Wire – “FHA Proposal Will Stifle Competition, Claims NAMB” (1-6-10)

“The National Association of Mortgage Brokers (NAMB) criticized a Department of Housing and Urban Development (HUD) proposal that would change how brokers and lenders operate in the Federal Housing Administration (FHA) loan program. The association contends HUD’s actions will adversely affect competition in the FHA loan market and have far-reaching economic impacts on lenders and correspondents both.”

Housing Wire – “Dodd to Leave Senate, Banking Committee Chair” (1-6-10)

“Senate Banking Committee chairman Christopher Dodd (D-Conn) on Wednesday said he will leave his post in Congress when his term expires and not seek reelection.”

Bloomberg - “Commercial Property Is Biggest Risk, U.S. Bank Examiners Find” (1-6-10)

“‘Losses from commercial real estate will be quite high by historic standards,’ said Eugene Ludwig, former Comptroller of the Currency who is now chairman of Promontory Financial Group, a Washington-based consulting firm to financial institutions.”

Bloomberg - “Regional Mall Vacancies in U.S. Rise to Record on Unemployment” (1-6-10)

“Vacancies at the largest U.S. shopping centers reached a record 8.8 percent in the fourth quarter as unemployment rose and consumers spent less, Reis Inc. said. Vacancies at smaller neighborhood and community centers increased to 10.6 percent, the highest level since 1991, from 8.9 percent a year earlier, New York-based Reis, a real estate research company, said today in a statement.”

Bloomberg - “U.S. Office, Shopping Center Construction Spending May Fall 13%” (1-6-10)

“Construction spending on hotels, office buildings and retail centers may fall 13 percent this year, the second straight annual decline amid a drop in property prices, the American Institute of Architects said. ”

Bloomberg - “Mortgage-Bond Spreads Narrow to Lowest in More Than 17 Years” (1-6-10)

“Yields on Fannie Mae and Freddie Mac mortgage securities fell to the lowest relative to Treasuries in more than 17 years, narrowing further on news Federal Reserve officials last month reiterated they may favor expanding their program to purchase $1.25 trillion of home-loan debt. ”

Looking Back:

One year ago, the NAR reported that the pending home sales index decreased by 4 percent from October to November. President Obama promised a tax break for business that would cover 5 years of expenses. Gary Watts forecasted that home prices below $500,000 would strengthen in 2009. Grubb & Ellis Co. anticipated that apartment rentals would increase during 2009.

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The Norris Group Real Estate News Roundup 12/30/09

Wednesday, December 30th, 2009

Today’s News Synopsis:

A survey from Bank of America shows that only 12 percent of the institutions who received TARP relief believe that the program positively impacted their operations. Barclay’s estimates that credit availability may increase during the next 6 to 12 months. Default Research reports that pre-foreclosure filings in California decreased in several counties. Statistics from Freddie Mac show that mortgage purchases decreased by 13% in November.

In The News:

Housing Wire – “Only 12% of Bank Execs Think TARP Leaves Positive Impact” (12-30-09)

“While larger financial institutions complete full repayment of the Troubled Asset Relief Program (TARP), as is the case with the $45bn repaid last week by Citi (C: 3.32 -1.48%) and Wells Fargo (WFC: 26.82 +0.52%), a bank survey completed by the Bank Administration Institute (BAI) claims only 12% of respondents feel the program positively impacted their operations.”

Housing Wire – “Origination Funding May Increase as Credit Restrictions Ease in 2Q10, Analysts Predict” (12-30-09)

“A recent set of research focusing on 2010 strategies for investors of agency mortgage-backed securities (MBS) by analysts at Barclays Capital finds that credit availability for mortgage originations may increase in the next six to 12 months. However, the situation will remain tight in the next three to six months, they add, as the market grapples with ongoing risk aversion sentiments, loan repurchases stabilization and new regulatory procedures that will need this time to take hold.”

Housing Wire – “Foreclosure Notices Drop in Major Counties: Default Research” (12-30-09)

“The number of pre-foreclosure filings in California, which include notices of default and notices of trustee sales, dropped across several counties in November, according to statistics from Default Research, which tracks the notices. The hard-hit Los Angeles County had a 10% decline from last month to 3.08% in November. Orange County, where 3.4% received a filing, had a drop of 8% in November. In Riverside County, 9.2% received a pre-foreclosure filing, a 13.7% decline from October.”

Housing Wire – “NAMB Criticizes Regulation Z Amendment” (12-30-09)

“In a letter to the Federal Reserve Board, the National Association of Mortgage Brokers (NAMB) said that certain aspects of the proposed rule to amend Regulation Z would impede market competition. Section 404 of the Helping Families Save their Home Act of 2009 took effect in May and requires a 30 day notice to mortgage borrowers of their loans being transferred for securitization. Called Regulation Z, the Fed’s interim final rule enforces the requirement under the Act.”

Housing Wire - “Fannie’s Serious Delinquencies Nears 5% in November” (12-30-09)

“After mortgage giant Freddie Mac (FRE: 1.42 -5.33%) reported a 13% drop in mortgage purchases in November, Fannie Mae (FNM: 1.16 -7.20%) shows its book of business declined at an annualized rate of 6.7% in the same month, according to its monthly summary”

Housing Wire – “List of HAMP Servicers Moves Past 100″ (12-30-09)

“The US Treasury Department added four new servicers to the Home Affordable Modification Program (HAMP), raising the total number of participants to 103, according to the latest Troubled Asset Relief Program (TARP) transaction report.”

Bloomberg - “GMAC Said to Discuss U.S. Aid Package of $3 Billion or More” (12-30-09)

“GMAC Inc., the home and auto lender that counts the U.S. government as the largest stakeholder, is discussing with the Obama administration a third bailout of $3 billion to $4 billion, said a person familiar with the matter.”

Orange County Register – “Tough market eyed for high-end housing” (12-30-09)

“There is a chance this is not the bottom for the all price ranges! However, under $500,000 looks to be in pretty good shape, although appreciation will continue to be very faint! Above $500,000 it will continue to be a tough market, as there are very few move-up buyers from the lower price ranges with money to support the higher price structure”

Looking Back:

One year ago, the Case Schiller index showed that home prices dropped by 18 percent in 20 major U.S. cities. Lockhart estimated that the government would need to provide lower borrowing costs to Fannie Mae and Freddie Mac. The Federal Reserve forecasted that mortgage modifications would be significantly hindered by second mortgages. Fannie Mae’s portfolio of mortgages increased by 9.3 percent in one month.

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The Norris Group Real Estate News Roundup 12/07/09

Monday, December 7th, 2009

Today’s News Synopsis

The MBA reports that delinquency rates increased during the third quarter for most mortgage investor groups. Bernanke claims that the recovery should continue for at least a year, but the U.S. still has some trouble to overcome. Six more banks were shut down Friday, which will cost the FDIC a total of $2.384billion.

In The News:

Mortgage Bankers Association – “MBA Report Shows Third Quarter 2009 Commercial and Multifamily Mortgage Performance Falls in Weakened Economy” (12-7-09)

“Delinquency rates continued to increase in the third quarter for most commercial/multifamily mortgage investor groups, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.”

MSNBC - “Bernanke: Too soon to tell if recovery will last” (12-7-09)

“The Fed chief repeated his belief that the recovery will continue at least into next year. But he cautioned that the economy is confronting some ‘formidable headwinds’ — including a weak job market, cautious consumers and still-tight credit.”

Housing Wire – “TARP Costs Narrow as Treasury Sheds Capital One Investment” (12-7-09)

“Initial projections put the cost of the financial stabilization efforts at more than $500bn, which factored into the President’s budget in February. Of that projection, $300bn was expected directly from TARP, and another $250bn was included in the budget to cover needed resources beyond TARP’s $700bn.”

Housing Wire – “Fannie Prepays Plunge ‘Unexpected’ 6%: BarCap” (12-7-09)

“The prepayment rate among Fannie Mae (FNM: 0.91 -1.09%) 30-year notes slipped 6% ‘unexpectedly’ after the government-sponsored entity (GSE) suspended buyouts related to the Home Affordable Modification Program (HAMP), according to monthly commentary by Barclays Capital. The buyout delay in this month’s reporting period for Fannie indicates a spike in buyouts — and the prepayment speed — next month as mortgages are modified and withdrawn from mortgage-backed security (MBS) pools, according to researchers.”

Housing Wire – “Monday Morning Cup of Coffee” (12-7-09)

“Regulators shut down six banks Friday, bringing to total number of failed institutions to 130 this year. The total estimated cost to the Federal Deposit Insurance Corp.’s (FDIC) deposit insurance fund is $2.384bn.”

Housing Wire – “Mortgage Insurers Deny 20-25% of Claims: Moody’s” (12-7-09)

“Mortgage insurance rescission rates jumped to 20-25% in recent quarters, relative to historical 7% averages. Moody’s said mortgage insurers rescinded about $6bn of claims since January 2008 and could rescind another $2bn to $4bn of claims during the next few years.”

Orange County Register – “O.C. mechanics liens drop 23%” (12-7-09)

“The Real Estate Research Council of Southern California reports that in the third quarter the number of Orange County mechanics liens filed were 730 – that’s -23.4% vs. a year ago. Mechanics liens are typically filed when contractors working on a real estate property — home or commercial, new or old — go unpaid for their services.”

Orange County Register - “Hear why O.C. property tax collections jumped” (12-6-09)

“Considering the wave of the ugly economic news out there, we were surprised to learn that early Orange County property tax collections were up $54 million as the Dec. 10 deadline for first installment payments neared.”

Looking Back:

One year ago, the delinquency rate for one-to-four-unit residential properties stood at 6.99 percent. 500,000 jobs were cut within one month’s time. The U.S. Treasury offered a multi-billion dollar proposal to lower the interest rate on 30-year mortgages to 4.5 percent.

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