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The Norris Group Real Estate News Roundup 8/26/10

Thursday, August 26th, 2010

 

 

Today’s News Synopsis:

The MBA’s second quarter survey shows the delinquency rate for mortgage loans on residential properties dropped to 9.85 percent. Freddie Mac reports that interest rates have dropped AGAIN to 4.36%. According to CoreLogic, 23 percent of residential homes with mortgages were in negative equity at the end of the 2nd quarter. Barclays Capital claims existing home sales decreased 30% last month.

In The News:

NAR - “Commercial Real Estate Remains Soft but Favors Business Expansion” (8-26-10)

“The SIOR index, measuring 10 variables, rose 2.8 percentage points to 41.0 in the second quarter, but remains well below a level of 100 that represents a balanced marketplace.  This is the third consecutive quarterly improvement after nearly three years of decline; the last time the commercial market was in equilibrium at the 100 level was in the third quarter of 2007.”

MBA - “Delinquencies and Foreclosure Starts Decrease in Latest MBA National Delinquency Survey” (8-26-10)

“The delinquency rate for mortgage loans on one-to-four-unit residential properties dropped to a seasonally adjusted rate of 9.85 percent of all loans outstanding as of the end of the second quarter of 2010, a decrease of 21 basis points from the first quarter of 2010, and an increase of 61 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased two basis points to 9.40 percent this quarter from 9.38 percent last quarter.”

Los Angeles Times – “Home loan rates drop yet again to record low” (8-26-10)

“Freddie Mac said rates for both 30-year and 15-year fixed mortgages dropped for the ninth time in the past 10 weeks. The mortgage giant’s weekly survey said the average rate that lenders were offering on the 30-year loan was 4.36% during the week that ended Thursday, down from 4.42% a week earlier and 5.14% a year ago. Borrowers would have paid 0.7% of the loan amount in upfront lender fees.”

Housing Wire – “Ranks of Underwater Borrowers Decline, Thanks to Foreclosure” (8-26-10)

“The number of Americans that owe more on their mortgages than their homes are worth declined during the second quarter of 2010, but not because home prices have improved. Instead, according to a new report, increased foreclosures have helped flush underwater borrowers out of the nation’s housing markets. According to a report from information services provider CoreLogic (CLGX: 17.77 +0.28%) released Thursday morning, 11 million — or 23% — of all residential properties with mortgages were in a negative equity position at the end of the second quarter.”

Housing Wire – “Amherst Sees HARP Failing Over Fees” (8-26-10)

“The Home Affordable Refinance Program, which started early last year, was supposed to ’solve the key inhibitor to many borrowers refinancing in our current housing market – negative equity,’ the research firm’s MBS strategy group said in its most-recent mortgage insight report. However, high levels of due diligence and onerous fees for borrowers mean that those who should get the refi, likely won’t.”

Housing Wire – “Fed Buys $1.41bn of Treasuries” (8-26-10)

“The Federal Reserve purchased $1.41 billion of Treasury debt Thursday, including $1.14 billion of notes maturing in November 2021.”

Housing Wire – “Freddie Mac Mortgage Purchases and Issuances Fall in July, 2010 Total Pushes $207bn” (8-26-10)

“Mortgage purchases and issuance at government-sponsored enterprise (GSE) Freddie Mac fell to nearly $28.4bn, from $30.9bn in June — bringing the year-to-date totally to $207.4bn so far in 2010. Refinance-loan purchase and guarantee volume at Freddie fell to $18.1bn in July, from $19.1bn in June, according to the firm’s monthly volume summary (download here). The aggregate unpaid principal balance of the GSE’s mortgage-related investments decreased by $13.6bn.”

Housing Wire – “Barclays Capital Expects Home Prices to Dip Another 7%” (8-26-10)

“Existing home sales plummeted 30% in July after the homebuyer tax credit brought forward 300,000 to 600,000 of housing demand, assuming 4 million homes sell annually, according to research today from Barclays Capital.”

Housing Wire – “Weekly Initial Jobless Claims Down 6.1% to 473,000″ (8-26-10)

“The Labor Department said Thursday that seasonally-adjusted initial claims slid to 473,000 last week, down from an upwardly revised 504,000 for the previous week. Briefing.com consensus had expected claims to drop to 485,000.”

Looking Back:

One year ago, the NAR reported nearly one-third of all existing homes sales were either short sales or foreclosures. Home sales in July 2009 increased by 30 percent from January 2009. Office space availability increased in the second quarter of 2009 in Orange County.

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

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The Norris Group Real Estate News Roundup 8/25/10

Wednesday, August 25th, 2010

Today’s News Synopsis:

The MBA’s weekly survey shows that mortgage loan application volume increased by 4.9%. The Commerce Department reported new homes sales decreased 12.4% in July. According to Zillow, most Western states experienced a decrease in 20-year mortgage rates last week. California’s 30-year rate decreased to 4.30%.

In The News:

Mortgage Bankers Association - “Mortgage Refinance Applications Continue to Increase as Rates Decrease in Latest MBA Weekly Survey” (8-25-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 20, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 4.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 4.5 percent compared with the previous week”

Washington Post – “New home sales hit lowest level” (8-25-10)

“The Commerce Department reported Wednesday that new homes sold in July at an annual rate of 276,000, down 12.4 percent from June and down 32.4 percent compared with the same time last year”

Housing Wire – “Dow Closes Down Nearly 134 Points Following Bad Housing Data” (8-25-10)

“The American stock markets closed lower today following the news of homes sales dropping a staggering 27%. Stocks of big banks that have large mortgage-finance operations such as Citigroup (C: 3.68 -0.81%), Bank of America (BAC: 12.63 -0.08%), Wells Fargo (WFC: 23.4907 -0.63%) and JPMorgan (JPM: 36.179 -0.09%) closed lower despite doing large amounts of trading volume, according to the New York Stock Exchange”

Housing Wire – “Zillow: Rate on 30-Year Mortgage Remains Flat on Average” (8-25-10)

“Most western states saw a decline in rates: California’s current rate of 4.3% is down from 4.33% last week; Colorado’s at 4.17% is down from 4.19%; Washington’s at 4.29% is down from 4.33%; Illinois’ at 4.24% is down from 4.3%, and Florida’s at 4.2% is down from 4.21%.”

Housing Wire – “Deutsche Bank Summarizes Future of GSEs, Government Guarantee” (8-25-10)

“Key elements included re-launching of the MBS guarantee business backed by catastrophe insurance from the US government. This guarantee would implicitly serve as a backstop to the TBA pass-through market. In a panel with investors in the space, both of these aspects were considered key to maintaining adequate liquidity at the GSEs.”

Housing Wire – “House Prices Begin to Climb, Up 0.9% in Q2 in FHFA Index” (8-25-10)

“The agency said its second quarter HPI – calculated using information from mortgages acquired by Fannie Mae and Freddie Mac – rose 0.9% on a seasonally adjusted basis from the prior quarter, yet fell 1.6% from the year ago. Still, prices of other goods and services in the second quarter were 3% higher than the year earlier. This puts the second quarter inflation-adjusted home price about 4.4% higher than last year, according to the FHFA.”

Housing Wire - “Americans Continue to Deleverage with Credit Card Debt Below $5k per Person” (8-25-10)

“The average national credit card borrower debt slid downward for the fifth consecutive quarter by 4.1% to $4,951, marking the first time the average has been below $5,000 since 2002, according to a report released today by TransUnion. This, coupled with the fact the national credit card delinquency rate for borrowers 90-plus days delinquent plummeted to 0.92% in Q210 (down 17.1% from the first quarter and 21.3% from last year) suggests that borrowers are saving more and spending more responsibly.”

Orange County Register – “Thinking of a refi? Tips for borrowers” (8-25-10)

“This summer’s bout of falling mortgage rates has sparked yet another frenzy of homeowners looking to refinance their loans. Now could be a good time to do it, too, with interest rates at their lowest in decades — lower than in 2001, lower than in 2003 and even lower than in 2004, when we last told you rates were at record lows. They’re lower now.”

Orange County Register – “O.C. housing risk 9th highest in U.S.” (8-25-10)

“Orange County home prices have 99.7% chance of price loss in two years, or by the winter of 2012. PMI Group doesn’t say how big of a price drop that would be, so the declines could be small or large. Nationwide, the average risk for price drops was 51.9% — down from 53.8% the previous quarter.”

Looking Back:

One year ago, the CAR reported Home sales increased 12 percent in July in California. Nationally home prices fell 6.1 percent in the second quarter from 2008, claimed the FHFA.

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

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The Norris Group Real Estate News Roundup 8/13/10

Friday, August 13th, 2010

 

 

Video Blog Sources:

ABC News – “Housing Summit May Yield Fannie and Freddie Clues” (8-12-10) To air on  Treasury website Tuesday.

Sacramento Bee –  “Californias’ Income Falls For First Time Since WWII” (8-11-10)

Los Angeles Times – “Fed to resume buying Treasury bonds” (8-11-10)

Foreclosure Radar Report – www.foreclosureradar.com

Inman – “FHA premium changes pushed to Oct. 4″ (8-12-10) 

Today’s News Synopsis:

Equity from the boom has now disappeared and many homeowners are deciding not to pay what they owe. Builders are shrinking the size of new projects as fewer consumers want McMansions. Moody’s sees increasing weakness in the commercial market and the U.S. government appears not to be sure how to move forward to avoid the much talked about double dip recession.

In The News:

New York Times - “Debts Rise, and Go Unpaid, as Bust Erodes Home Equity” (8-11-10)

“During the great housing boom, homeowners nationwide borrowed a trillion dollars from banks, using the soaring value of their houses as security. Now the money has been spent and struggling borrowers are unable or unwilling to pay it back.”

RisMedia - “Builders Shrink Homes to Fit Buyers’ Newly Modest Tastes” (8-13-10)

“I do believe the younger generation isn’t looking to build mansions anymore,” Palazzolo said. “They are looking at simpler lives. They aren’t looking for the same houses that the baby boomers were.”

AP - “Homes lost to foreclosure up 6 pct from last year” (8-12-10)

“The number of U.S. homes lost to foreclosure surged in July, another sign lenders are moving quicker to take back properties from homeowners behind in payments. Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, foreclosure listing firm RealtyTrac Inc. said Thursday.”

Market Watch - “Monetary policy in a time of deleveraging” (8-11-10)

“The U.S. economy is on the edge of the cliff, threatening to plunge back into ruinous recession, but the worst part is that Washington won’t do anything to stop it. ”

Bloomberg - “Related News:Opinion · Insurance · Retail .U.S. Is Bankrupt and We Don’t Even Know It: Laurence Kotlikoff” (8-10-10)

“Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills.”

Housing Wire – “Fifth Third Converts 70% of HAMP Trials to Permanent Status” (8-13-10)

“Fifth Third Mortgage Co., the mortgage unit of Fifth Third Bancorp, so far converted 70% of its trial Home Affordable Modification Program (HAMP) plans into permanent modifications.”

Housing Wire – “Moody’s Sees CMBS Delinquency Poised to Rise 9%-11% in 12 Months” (8-13-10)

“Moody’s Investors Service expects the share of commercial mortgage-backed securities loans that are delinquent or in special servicing to continue to rise over the next year. Analysts expect delinquencies to increase by 9% to 11% during the next 12 months with loans in special servicing climbing to about 20%, which would be up from the current 11.3% and 5% a year ago.”

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

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The Norris Group Real Estate News Roundup 7/30/10

Friday, July 30th, 2010

Sources:
http://www.govtrack.us/congress/bill.xpd?bill=h111-600
http://maplight.org/us-congress/bill/111-hr-600/357605/total-contributions.table
http://blogs.wsj.com/developments/2010/07/29/popular-zero-down-mortgage-program-makes-comeback/?blog_id=36&post_id=14060
http://www.rurdev.usda.gov/rhs/sfh/brief_rhguar.htm
http://www.rurdev.usda.gov/SupportDocuments/CA%20GRH.pdf
http://money.cnn.com/2010/07/26/real_estate/new_home_sales/?postversion=2010072612
http://www.housingwire.com/2010/07/26/multifamily-rental-demand-catching-up-to-supply-barcap
http://www.bloomberg.com/news/2010-07-27/apartment-rentals-surge-in-u-s-as-foreclosures-rise-job-growth-resumes.html
http://www.housingwire.com/2010/07/27/homeownership-vacancy-rate-level-in-q210
http://www.bloomberg.com/news/2010-07-27/job-cuts-of-500-000-next-year-predicted-for-cities-counties-over-budget.html
http://money.cnn.com/2010/07/29/real_estate/new_face_of_foreclosure

Today’s News Synopsis:

The Commerce Department reports the economy grew by 2.4%. Altos Research predicts home prices will continue to decrease through the rest of the year. According to FinCen, suspicious activity reports for mortgage fraud in 2009 increased by 4% from 2008. Legislation for the Section 502 single-family rural housing program is headed to the President to be signed back into law. The program allows 30-year originations to purchase households or renovate currently owned ones with zero down payment at the time of application.

In The News:

Los Angeles Times – “Economy slows sharply in second quarter” (7-30-10)

“The nation’s economy grew at a modest 2.4% annual rate in the April-to-June period, the Commerce Department said in its first estimate of gross domestic product for the second quarter. That compares with a GDP growth of 3.7% in the first quarter – a figure adjusted up from 2.7% reported earlier. But Commerce officials revised down the growth in the fourth quarter of last year, to 5% from 5.6%, as it did for prior quarters, painting an overall picture of a deeper recession than previous data suggest.”

Housing Wire – “Fannie Mortgage Portfolio Grows 6% on $19bn of Repurchases” (7-30-10)

“Fannie’s book of business include about $19bn of loans purchased from mortgage-backed security (MBS) trusts in June that won’t be reflected as liquidated from MBS until July. Excluding these repurchases, the total book of business would have grown at a compound annualized rate of 0.3% in June. Within the company’s mortgage portfolio, Fannie added $27.6bn in purchases and recorded $6.2bn in sales and $17.2bn in liquidations. Due largely to the $19bn of buybacks, Fannie’s mortgage portfolio grew at a compound rate of 6.3% in June.”

Housing Wire - “Shadow Inventory to Push 2011 Home Prices Lower than ‘09: Altos Research” (7-30-10)

“House prices will continue to drop through the rest of the year and will begin 2011 lower than they were in 2009, according to a webinar hosted by Scott Sambucci, vice president of data analytics for Altos Research.”

Housing Wire - “Alleged Mortgage Fraud up 4% in 2009 with LA, Miami in Top Spots” (7-30-10)

“FinCEN notes that suspicious activity reports (SARs) for mortgage fraud in 2009 rose 4% from 2008, and really started speeding up towards the end of the year. Q409 is up 6% from the same quarter one year ago. Further, mortgage loan fraud made up 9% of all SARs filed in 2009, spiking at 11% in Q409.”

Housing Wire – “CMBS Defaults on Track to Break 11% by Year-End: Fitch” (7-30-10)

“Defaults on fixed-rate conduit US commercial mortgage-backed security (CMBS) loans continued at record speeds, on track to reach a cumulative default rate of 11% by year-end 2010, according to credit-rating agency Fitch Ratings. Cumulative defaults rose to 9.48% through June — a 133bp-climb from Q110. This increase is in line with Fitch’s expectation of an 11% cumulative default rate by year-end.”

Housing Wire – “Fed Hikes Mortgage Fee Disclosure Trigger 2% in 2011″ (7-30-10)

“The Federal Reserve Board of Governors today raised the dollar amount of mortgage fees that triggers mortgage disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act of 1994 (HOEPA). The Fed raised the trigger 2% to $592, from the current $579, beginning in January 2011. The trigger amount is now 48% higher than the $400 originally set by HOPEA in 1994.”

Housing Wire – “Section 502 May Return with Zero Down Payment Mortgages, 3.5% Guarantee Fee” (7-30-10)

“The National Association of Realtors (NAR) announced Wednesday that legislation for the Section 502 single-family rural housing program under the Department of Agriculture is headed to President Obama’s desk to be signed back into law. The program allows 30-year originations primarily for low-income families to purchase households or renovate the ones they already own with no down payment at the time of application. Loans are guaranteed by the federal government.”

Realty Times - “California gets $700,000 slice of special $1.5 billion homeowner bailout pie” (7-30-10)

“California struck gold, receiving the biggest chunk of a special $1.5 billion federal fund pie for programs that target struggling homeowners in states hardest hit by the housing crash. Earlier this year President Obama announced the $1.5 billion infusion for state housing agencies in Arizona, California, Florida, Michigan and Nevada, where home values have fallen more than 20 percent from peak 2006 and 2007 markets.”

Looking Back:

One year ago, the Labor Department reported the unemployment rate rose to 9.5. The average 30-year mortgage rate increased to 5.25 percent. Inventory levels in Orange County reached the lowest levels in 4 years.

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

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The Norris Group Real Estate News Roundup 6/21/10

Monday, June 21st, 2010

Today’s News Synopsis:

436,000 people have dropped out of the mortgage modification program since March 2009. A survey from Grant Thornton LLP shows that 45% of bankers expect economic conditions to improve over the next 6 months. According to CoreLogic, national housing prices increased 2.6% in April 2010 compared to April 2009. Analyst Meredith Whitney believes the U.S. housing market will experience a second recession.

In The News:

Los Angeles Times – “Borrowers face foreclosure after Obama loan assistance program fails to provide help” (6-21-10)

“More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. That’s more than the 27 percent who have managed to have their loan payments reduced to help them keep their homes. Last month alone, 150,000 borrowers left the program — bringing the total to 436,000 who have exited since it began in March 2009.”

Housing Wire – “More Bankers Expect Economic Improvement before 2011: Grant Thornton” (6-21-10)

“The majority of bankers are optimistic about the US economy in coming months, with 45% expecting conditions to improve over the next six months, according to a survey by US audit firm Grant Thornton LLP. It marks a significant improvement over the same survey six months earlier, which found 24% of respondents expected conditions to improve.”

Housing Wire – “SEC Charges Investment Advisor with CDO of Mortgage-Backed Securities Fraud” (6-21-10)

“The Securities and Exchange Commission is charging Thomas Priore, owner and president of ICP Asset Management, with the fraudulent management of investment products tied to the mortgage finance markets. It is alleged that ICP and three affiliated firms misrepresented four multi-million-dollar collateralized debt obligation (CDO) platforms backed by mortgage securities (MBS). The SEC claims the CDOs lost tens of millions of dollars, while Priore collected tens of millions of dollars in advisory fees and undisclosed profits at the expense of their clients and investors.”

Housing Wire – “Total Number of HAMP Permanent Modifications Passes 340,000″ (6-21-10)

“Servicers participating in the Home Affordable Modification Program (HAMP) conducted 340,459 permanent modifications through May 2010 since the program launched in March 2009, up from 299,092 through April, according to the Treasury Department. The Treasury launched HAMP to provide incentives to servicers for the modification of mortgages on the verge of foreclosure. In order to receive a permanent modification, borrowers must make three monthly payments during the trial period and submit all documentation.”

Housing Wire – “Architecture Firms See Business Increase with Demand for Smaller Houses: AIA” (6-21-10)

“AIA conducted a survey of 500 architecture firms that concentrate practices in the residential sector. AIA also found that American homebuyers are showing greater interest in smaller homes and lot sizes. According to the survey, the economic downturn and growing concerns over rising utility costs have created a demand for smaller homes and lot sizes.”

Housing Wire – “CoreLogic Home Price Index Up 2.6% in April” (6-21-10)

“National housing prices increased 2.6% in April 2010 compared to April 2009 in the CoreLogic (CLGX: 18.335 -2.16%) monthly home price index (HPI). It’s the second month in a row that prices have increased from the same month one year ago. The April increase comes after a 2.3% year-over-year increase in March. The HPI was upwardly revised from an original projection of a 1.7% increase for March.”

Bloomberg - “Whitney Says She Sees ‘Double Dip’ in Housing Market” (6-21-10)

“The U.S. housing market will experience a second recession, forcing banks to post additional loan-loss reserves, analyst Meredith Whitney said.”

Orange County Register – “House price per sq. ft. highest in 2 years” (6-21-10)

“The median price per square foot paid to buy an Orange County house hit $296.32 in May, the highest that measure has been since August 2008, figures from MDA DataQuick show. The price per square foot for an existing, single-family home has been on an upsurge after bottoming out in January 2009, increasing from the month before in 10 of the past 13 months.”

Orange County Register – “5 O.C. hot spots for home-price cuts” (6-21-10)

“As of June 1, 29% of homes on the market in Orange County have seen at least one price reduction, according to online home tracker Trulia.com. Nationwide, 22% of listings had at least one price trim, with the average reduction 10% off the original asking price.”

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

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The Norris Group Real Estate News Roundup 6/8/10

Tuesday, June 8th, 2010

Today’s News Synopsis:

A survey from the NFCC shows that only 23 percent of Americans consider strategic default to be acceptable when underwater on a mortgage. Starting today, Real Estate Disposition is auctioning more than 350 bank-owned foreclosures in California. According to IAS, national home prices were up 0.9% in April from March. An executive from RealtyTrac believes U.S. foreclosure activity will not stabilize until late 2011.

In The News:

Inman - “Builders’ incentives to buyers under scrutiny” (6-8-10)

“Federal regulators are once again scrutinizing incentives tied to the use of homebuilders’ affiliated mortgage and title companies, looking for evidence that they cost consumers more than they’re worth, help inflate appraisals, and lower underwriting standards. The Department of Housing and Urban Development (HUD) in 2008 proposed a ban on such incentives, but backed down last year after homebuilders sued over the proposed rule change”

Housing Wire – “Strike Strategic Default: Survey Finds Mortgage Payments Remain Borrower Priority” (6-8-10)

“Less than one-quarter, or 23%, of consumers recently polled indicated that opting for foreclosure is justifiable when a borrower is underwater, owing more on a home than its worth, according to the National Foundation for Credit Counseling (NFCC). This idea of strategic default, when a borrower with the ability to pay chooses not to remain current on payments, was unacceptable to another 15% of survey respondents who said no circumstances justify walking away from the financial obligation.”

Housing Wire – “CoreLogic Adds Foreclosure Data to Distressed Property-Listing Web Site” (6-8-10)

“Data analytics provider CoreLogic (CLGX: 19.68 -1.01%), recently spun off by First American Financial (FAF: 13.51 -0.44%), will provide foreclosure data and property information to the Yahoo! Real Estate foreclosure service, the company said. The partnership adds listings of various stages of foreclosure and real-estate-owned (REO) properties to Yahoo! Real Estate’s online database of distressed properties including foreclosure and pre-foreclosure listings.”

Housing Wire - “REDC to Auction 350 Bank-Owned Foreclosures” (6-8-10)

“Beginning today, Real Estate Disposition (REDC) is auctioning more than 350 bank-owned foreclosures in Northern and Southern California, including 76 properties. Through June 12, REDC will auction more than 70 Northern California properties, including 34 occupied homes. An online-only auction, the offering ends at noon Central.”

Housing Wire – “Despite Narrow Monthly Gain, House Prices Fall 2.8% from 2009: IAS” (6-8-10)

“National house prices were up 0.9% in April from March, narrowed from the previous monthly gain of 1.1%, according to the latest data from Integrated Asset Services (IAS). The IAS house price index remains 2.8% below levels seen in the same time last year — widened from the 1.9% yearly depreciation in March. Additionally, the index is down 23.9% from its July 2007 peak.”

Bloomberg - “Four Seasons Sees Rates Returning to Peak Levels in Some Areas” (6-8-10)

“Four Seasons Hotels Inc. expects nightly rates at some of its properties will climb to the peak levels of 2008 by the end of this year as demand for luxury accommodation picks up, President Kathleen Taylor said.”

Orange County Register – “Foreclosures to be high for 18 more months” (6-8-10)

“Foreclosure activity in America won’t stabilize until late 2011, an executive for Irvine-based Realty Trac told a group of real estate writers. And with only three out of eight bank-owned homes on the market, and two-thirds of those under-valued homes yet to hit, the U.S. housing market still faces years of low prices.”

Orange County Register - “Where housing zip lives: Aliso to Yorba” (6-8-10)

“Newport Beach communities had the most housing ZIP in the first quarter. Santa Ana neighborhoods the least homebuying momentum. Our Zippy rankings weigh pricing and sales momentum — plus foreclosure frequency — as measured by DataQuick stats.”

Orange County Register – “3 charged in foreclosure ‘rescue’ case” (6-8-10)

“Gregory Flores, who managed All Fund Mortgage branches in Anaheim Hills and Murietta, was arrested in Roswell, N.M. last week. Also facing wire fraud charges charges in the case are Sheri Gale, who was a loan officer for All Fund, and Amy Hall, a former loan processor for the company. They have not been arrested but are expected to turn themselves in shortly, Assistant U.S. Attorney Sean Lokey says.”

Realty Times – “Mortgage Rates Touched New Low Friday” (6-8-10)

“The decline in mortgage rates stemmed from a big increase in mortgage-backed securities prices Friday. MBS prices, which drive mortgage rates in the opposite direction, gained +21/32 (FNMA 30-yr 4.5 at 102.23) on less than spectacular jobs numbers and more European debt concerns, this time in Hungary. Typically when we see significant declines in stocks as we have lately, mortgage rates improve.”

Wall Street Journal – “Baker: Turn Fannie, Freddie Into Government-Owned Corporations” (6-8-10)

“Want an easy, simple solution to Fannie Mae and Freddie Mac? Take the mortgage-finance giants, which have been effectively nationalized, and turn them into government-owned corporations, says Dean Baker, the co-director of the Center for Economic and Policy Research, a liberal think tank. In an op-ed in USA Today, Mr. Baker makes the case that nationalizing Fannie and Freddie isn’t as radical as it sounds. For one, both companies are effectively owned and operated by the government today.”

Looking Back:

One year ago, an AP test showed that recession “stress” decreased 5 percent from March to April. Robert Shiller estimated that home prices would likely continue to decline for years to come. JP Morgan estimated that U.S. home foreclosures would probably total 6.4 million by mid-2011.

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

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The Norris Group Real Estate News Roundup 5/24/10

Monday, May 24th, 2010

Today’s News Synopsis:

According to the NAR, Existing home sales increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April. The CIRB reports permits were pulled for 3,314 total housing units in April. Statistics from CAR show California home sales decreased 8.1 percent in April. The Federal Reserve doesn’t intend to sell any of its assets until after it begins raising interest rates.

In The News:

NAR - “Existing-Home Sales Continue to Improve in April” (5-24-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.”

CBIA - “California Housing Starts Dip in April, CBIA Announces” (5-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,314 total housing units in April, down 6 percent from the same month a year ago and down 9 percent from March. Permits for single-family homes totaled 2,252, down 6 percent from April 2009 and down 5 percent from the previous month, while multifamily permits totaled 1,062, down 7 percent from a year ago and down 16 percent from March.”

CAR - “April 2010 sales and price report” (5-24-10)

“Home sales decreased 8.1 percent in April in California compared with the same period a year ago, while the median price of an existing home rose 21 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Wall Street Journal – “Mortgage Rates Decline” (5-24-10)

“The housing industry had been bracing for months for a period of rising mortgage rates, triggered by the end of the Federal Reserve’s $1.25 trillion mortgage-securities purchase program. Conventional wisdom held that mortgage rates would rise as the Fed pulled back from propping up the market. Instead, many in the industry now say rates could drift as low as 4.5% this summer from 4.86% now, instead of rising to 6% as some economists projected, making for significantly lower payments for Americans buying homes or refinancing their mortgages.”

Bloomberg - “Fed Won’t Sell Mortgage-Backed Assets Until it Raises Rates” (5-24-10)

“The Federal Reserve doesn’t intend to sell any of its assets, including more than $1.1 trillion in mortgage-backed securities, until after it begins raising interest rates, the central bank said in a report to Congress.”

Housing Wire – “FDIC Sells $233m of Commercial Mortgage-Backed Notes” (5-24-10)

“The Federal Deposit Insurance Corp. (FDIC) sold $233m in notes backed by performing and non-performing commercial real estate loans from 22 financial institutions under receivership. The underlying mortgages bear an aggregate unpaid principal balance of $1bn.”

Bloomberg - “FHA Home-Financing Volume Sign of ‘Very Sick System’” (5-24-10)

“The FHA, which backs loans with down payments as low as 3.5 percent, insured $52.5 billion of home-purchase mortgages in the first quarter, compared with $46 billion of purchases of the debt by Fannie Mae and Freddie Mac, according to data compiled by Washington-based Potomac Partners. The FHA and Fannie Mae and Freddie Mac, which regulators seized in 2008, have been financing more than 90 percent of U.S. home lending after a retreat by banks and the collapse of the market for mortgage bonds without government-backed guarantees.”

Bloomberg - “Defaults on Apartment-Building Loans Set Record for U.S. Banks” (5-24-10)

“Defaults on apartment-building mortgages held by U.S. banks climbed to a record 4.6 percent in the first quarter, almost twice the year-earlier level, as more borrowers failed to repay debt approved near the market peak, said Real Capital Analytics Inc. in a report. Defaults on so-called multifamily mortgages rose from 4.4 percent in the fourth quarter and from 2.4 percent during the same period in 2009, the New York-based real estate research firm said today. Commercial-mortgage defaults also rose in the first quarter for loans against office, retail, hotel and industrial properties, Real Capital said.”

Bloomberg - “U.S. Subprime Hunt Targets Goldman, May Skip Cassano: Timeline” (5-24-10)

“Federal prosecutors don’t plan to bring charges against former American International Group Inc. executive Joseph Cassano after a two-year probe of the insurer’s collapse, according to a person familiar with the investigation. Justice Department investigators found there is insufficient evidence to charge Cassano, the former head of AIG’s Financial Products division, the person said.”

Inman - “3 fatal flaws of real estate negotiation” (5-24-10)

“Agents have a wealth of places both online and offline to find strategies that work. Agent blogging sites are rich with great suggestions, many of which are from the best agents in the business. Nevertheless, many of these strategies still use manipulation or one-upmanship. The result is that these old approaches often undermine the agent’s success.”

My Desert – “Short sales on the rise” (5-23-10)

“Real estate experts say they’re seeing spurts of multiple bids and cash buys on homes priced below $250,000 by investors with deep pockets, buyers from other states or residents with equity in their home, a move-up mentality or frazzled nerves from a volatile stock market.”

Washington Post – “Anger at the root of mortgage default problem, study finds” (5-22-10)

“Now White has published a paper based on the personal accounts of 356 strategic defaulters and homeowners on the verge of doing the same. His finding: People who intentionally default on their loans are not as economically rational or calculating in their decision-making as widely thought. In fact, he said, their decisions to pull the plug ‘may not turn out to be economically rational.’ But they walk anyway, in large part because they are at the end of their emotional rope. They have transitioned from feelings of anxiety and hopelessness to outright anger at their lenders, the government and a financial system they consider unfair.”

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 4/5/10

Monday, April 5th, 2010

Today’s News Synopsis:

Pending home sales increased by 8.2 percent from January to February. A new rule will require all new lender applicants for FHA programs to possess a minimum net worth of $1 million. According to LPS, the average loan in foreclosure is 401 days delinquent.  A proposed bill, House Resolution 4935, will prohibit mortgage servicers from holding another mortgage on a property that also secures the serviced mortgage.

In The News:

NAR - “Pending Home Sales Show Healthy Gain, Hint at Spring Surge” (4-5-10)

“The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in February, rose 8.2 percent to 97.6 from a downwardly revised 90.2 in January, and remains 17.3 percent above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.”

Housing Wire – “HUD Foreclosure Prevention Funds Taking Longer to Reach Housing Markets” (4-5-10)

“State and local governments drew up plans to spend 37.9% of the $3.92bn granted through the Neighborhood Stabilization Program first-round of awards (NSP1), according to data from the US Department of Housing and Development (HUD), sparking assessment of some programs struggling to get the funds in action.”

Housing Wire – “Freddie to Allow Mezzanine Debt on Multifamily Mortgage Refinancings” (4-5-10)

“In an attempt to bridge the gap in capital needed to refinance debt on overleveraged multifamily properties, Freddie Mac (FRE: 1.30 +3.17%) announced it will accept mezzanine debt on the qualifying senior multifamily mortgages it purchases. Under the terms of the new plan, Freddie Mac seller/servicers of multifamily loans will originate a first lien mortgage with a loan to value (LTV) of up to 75%, then work with the mezzanine lender to provide additional leverage, up to another 15% for their borrower, allowing the property owner to borrow up to 90% of a property’s value. The program requires the property owner hold a 10% cash equity position in the property.”

Housing Wire – “FHA Raises Mortgage Lender Capital, Liability Requirements” (4-5-10)

“The final rule, to be published in the next few days, will require all new lender applicants for FHA programs to possess a minimum net worth of $1m, four times the $250,000 required since 1993. FHA said in a statement today the final rule will also strengthen lender approval criteria, and make lenders liable for the oversight of mortgage brokers.”

Housing Wire - “For Consumers, Time to Shop (Until the Mortgage Drops)” (4-5-10)

“In fact, as I’ve shown in previous columns, most Americans behind on their mortgage have gone more than a year without making any payments. The average age of a loan in foreclosure is now 410 days delinquent, after all, according to LPS; and that’s just the average. Many delinquent borrowers are able to stay in their homes for even longer than that.”

Housing Wire – “House Bill Would Bar Mortgage Servicers from Holding Additional Mortgages” (4-5-10)

“House Resolution (HR) 4953, the Mortgage Servicing Conflict of Interest Elimination Act, would prohibit mortgage servicers from holding another mortgage on a property that also secures the serviced mortgage, Miller and Ellison said in a joint statement last week.”

Bloomberg - “Small Commercial Mortgages Present ‘Under-the-Radar’ Threat” (4-5-10)

“Loans of under $10 million account for $167.8 billion of the $651 billion commercial mortgage-backed securities market, analysts Gail G. Lee and Serif Ustun wrote in an April 2 report. About 5.95 percent of those loans are now at least 60 days behind on payment, the analysts said. The problems in this area are likely to increase and may not be getting adequate attention as loan servicers focus on high-profile properties.”

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The Norris Group Real Estate News Roundup 4/1/10

Thursday, April 1st, 2010

Today’s News Synopsis:

California citizens planning to buy within the next 3 months may be able to take advantage of both a state and federal tax credit. The Commerce Department reports that construction spending decreased by 1.3 percent across the United States. The delinquency rate for CMBS loans increased to 7.61% in March. The delinquency rate for single family mortgages increased to 4.08 percent in February.

In The News:

San Francisco Chronicle – “Good timing could reap double tax credits” (4-1-10)

“Some home buyers in California could get a federal tax credit worth up to $8,000 plus a new state credit worth up to $10,000 if they time their purchase just right over the next three months. But double-dipping will be tricky and won’t come without risks.”

Mercury News - “Construction spending at lowest point since 2002″ (4-1-10)

“The Commerce Department reported Thursday that spending on construction projects around the country fell by 1.3 percent to a seasonally adjusted annual rate of $846.23 billion. That was the lowest level since November 2002.”

Housing Wire – “Spiking CMBS Delinquencies May Collapse Mid-Sized Banks in 2010: Trepp” (4-1-10)

“According to a report from the analytics firm Trepp, spiking delinquencies in CMBS could cause bank failures to increase as much as 30% in 2010. The delinquency rate for loans in commercial mortgage-backed securities (CMBS) spiked to 7.61% in March from 6.72% in February, according to the report.”

Housing Wire - “Freddie’s Single-Family Mortgages Grow to 4.08% Delinquent” (4-1-10)

“Delinquent mortgages continue to mount at government-sponsored enterprise (GSE) Freddie Mac (FRE: 1.26 -0.79%). The delinquency rate of Freddie’s single-family mortgages grew 5bps from January to 4.08% in February. That’s up almost double from 2.13% at the same time last year. The delinquency rate among multifamily mortgages grew 2bps to 0.17%.”

Housing Wire – “Shrugging Off Critics, Private Equity Says Defaults Remain Below Projections” (4-1-10)

“Private equity-backed companies seem to be pulling through the financial crisis in better shape than other comparable business, especially issuers of speculative grade or high-yield debt offerings, according to a study from the Private Equity Council (PEC). The study measured the annualized default rate for more than 3,200 private equity-backed companies acquired between 2000 and 2009 and held through 2008 to 2009, which is where the PEC bracketed the recession. The default rate for those companies reached 2.8% in that time, compared to 6.2% for other firms.”

Bloomberg - “California Hotel Foreclosures Climb as Unemployment Cuts Travel” (4-1-10)

“Hotel foreclosures in California climbed 27 percent in the first quarter from a year earlier as unemployment cut business travel. Foreclosures, including the 469-room Los Angeles Marriott Downtown, rose to 79 properties from 62 in the first three months of 2009. Defaults increased 6.5 percent to 327, Irvine, California-based Atlas Hospitality Group said in a statement. The company specializes in selling hotels.”

Reuters - “Data boosts self-sustaining recovery hopes” (4-1-10)

“Initial claims for state unemployment benefits slipped 6,000 to 439,000 in the week ended March 27, the Labor Department said. The data, which mirrored market expectations, offered few clear hints on Friday’s job figures because it covered a week outside the survey period for the March employment report. The four-week moving average of new claims, considered a better measure of underlying labor market trends, fell 6,750 to 447,250, the lowest level since September 2008.”

Inman - “Residential construction spending dips” (4-1-10)

“The rate of spending on private residential construction dropped 2.1 percent in February compared to January, and was down 3.8 from January 2009, the U.S. Census Bureau reported today. The seasonally adjusted annual spending rate has plunged 62.9 percent from a peak of $676.4 billion in March 2006 to its latest level of $250.8 billion in February 2010. This rate is a projection of a monthly spending total over a 12-month period, adjusted to account for typical seasonal fluctuations in construction activity.”

Inman - “A changing role for real estate agents” (4-1-10)

“A good Realtor is so much more than a home-finder or a chauffeur. As I work with informed, tech-savvy consumers, I can clearly see the value that I add for them. It comes down to experience. Most people buy a few or maybe only a couple of homes in their lives. It is my experience that makes the buyers I work with comfortable with making the largest purchase of their lives. They don’t need to be sold a home, they need help finding the right one and they need to buy it with confidence.”

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The Norris Group Real Estate News Roundup 3/31/10

Wednesday, March 31st, 2010

Today’s News Synopsis:

According to the NAR, vacation home sales increased by 7.9 percent in 2009. Mortgage loan application volume increased by 1.3 percent from last week.  Fannie Mae reports the percentage of seriously delinquent loans increased to 5.52% in January. FHA does allow mortgages to borrowers who sell their current residence under short-sale provisions and then purchase a new home without the standard 3 year wait.

In The News:

NAR - “Vacation-Home Sales Up in 2009 but Investment Sales Down” (3-31-10)

“NAR’s 2010 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2009, shows vacation-home sales rose 7.9 percent to 553,000 last year from 513,000 in 2008, while investment-home sales fell 15.9 percent to 940,000 in 2009 from 1.12 million in 2008. Primary residence sales rose 7.1 percent to 4.04 million in 2009 from 3.77 million in 2008.”

Mortgage Bankers Association – “Strain on Commercial/Multifamily Real Estate Market Continues in the Fourth Quarter” (3-31-10)

“The Mortgage Bankers Association (MBA) today released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for the fourth quarter of 2009. The analysis shows the ongoing strain on the commercial/multifamily real estate markets resulting from the recent recession. Many data series included in the Data Book also show significantly slower rates of decline compared to previous periods.”

Mortgage Bankers Association – “Mortgage Purchase Applications Increase in Latest MBA Weekly Survey” (3-31-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 26, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.5 percent compared with the previous week.”

State of California – “2010 Tax Credit for New Home / First-Time Buyer” (3-31-10)

“These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, the New Home Credit is available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.”

Housing Wire – “Fannie Delinquencies Reach All-Time High at 5.52%” (3-31-10)

“While serious delinquencies in the Fannie Mae (FNM: 1.05 0.00%) portfolio continue to reach new heights in January, mortgage-backed securitization (MBS) issuance dropped for the second month in a row in February, according to its monthly report. The serious delinquency rate at Fannie climbed to 5.52% in January – the most recent month of data – up 14 bps from December and doubling the 2.77% rate in January 2009.”

Business Week – “The 50 Most Powerful People in Real Estate 2010″ (3-31-10)

“Who are the people setting the agenda in the U.S. real estate market? As Bloomberg BusinessWeek found out, the answer is complicated and can be approached only from a range of perspectives. We spoke with industry experts about an array of functions—economists, government officials, heads of industry organizations, bankers, insurers, brokers, homebuilders, property managers, investors, and property owners—and selected 50 people we believe are leading the economic recovery or carry particular clout in shaping the landscape for homeownership.”

Orange County Register – “What? Quick loan despite a short sale?” (3-31-10)

“It turns out FHA does allow mortgages to borrowers who sell their current residence under short-sale provisions and then purchase a new home without the standard 3 year wait.  There are certain conditions that must be met–some of the conditions are a little subjective and on these I would not suggest trying to push limits.”

Orange County Register – “Hear why foreclosures dampen housing’s future” (3-31-10)

“Berson tells ocregister.com in a podcast interview that while the worst may be behind housing, there’s little reason to believe that boom times will be ahead. One big problem is that the large supply of foreclosures and other distressed properties will dampen home prices for the foreseeable future. Additionally, lenders will stay tight with their lending terms — and that’s not so bad, Berson says”

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