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Posts Tagged ‘MetLife’

The Norris Group Real Estate News Roundup 6/30/11

Thursday, June 30th, 2011

Today’s News Synopsis:

Freddie Mac’s recent survey revealed that mortgage rates have not changed much and are at an average of 4.5% for the fourth consecutive week.  San Francisco Chronicle reported not much improvement in the job market as the number of Americans applying for unemployment benefits has remained consistent.  A recent poll showed that 9 out of 10 Americans still believe owning a house is part of the American Dream, despite the economy. 

In The News:

Housing Wire - “Private mortgage insurers lock down $3.9 billion in new business in May” (6-30-11)

“Private mortgage insurers, which have been advocating for a place in the future mortgage finance space, wrote $3.92 billion in new mortgage insurance last month, up from nearly $3.7 billion in April.”

Los Angeles Times - “Mortgage rates: Steady as she goes“ (6-30-11)

“Amid mixed economic news, long-term mortgage rates are little changed for the fourth week in a row, with lenders offering 30-year fixed-rate home loans to solid borrowers at an average of 4.51%, according to the latest Freddie Mac survey.”

San Francisco Chronicle - “Unemployment benefit applications stuck above 400k” (6-30-11)

“The number of Americans seeking unemployment benefits was mostly unchanged last week, evidence that the struggling economy isn’t generating many jobs.”

NAHB - “Best in American Living Awards Now Accepting Entries” (6-30-11)

“The National Association of Home Builders (NAHB) is accepting entries for the Best in American Living Awards (BALA), the premier award program for the home building industry.”

Realtor Magazine - “Poll: 9 in 10 Americans Value Home Ownership” (6-30-11)

While nearly one-quarter of home owners owe more on their home than it’s currently worth, Americans still see the value in home ownership and still consider it part of the American dream.”

Bloomberg - “MetLife Bank Replaces BofA on KB Home Mortgage Deal to Add Young Borrowers” (6-30-11)

“MetLife Inc. (MET), the life insurer that uses television ads to sell loans to older homeowners, replaced Bank of America Corp. (BAC) in a mortgage-distribution deal that will offer access to younger borrowers.”

DS News - “CoreLogic Home Price Index Shows Second Straight Monthly Increase” (6-30-11)

“Home prices in the U.S. rose in May, marking the second straight month of gains, according to CoreLogic.  Index data released by the firm Thursday show that national home prices, including distressed sales, increased by 0.8 percent between April and May. Compared to May 2010, CoreLogic’s latest reading is down 7.4 percent”

Realtor Magazine – “Banks’ Portfolios Still Plagued by Bad Loans” (6-30-11)

“Nearly 20 percent of mortgages in banks’ portfolios were delinquent at the end of March, according to a report released this week by the Office of the Comptroller of the Currency, a bank regulator.”

Bloomberg - “Fannie Mae Silence on Taylor Bean Mortgages Opened Way to $3 Billion Fraud” (6-30-11)

“The first sign of what would ultimately become a $3 billion fraud surfaced Jan. 11, 2000, when Fannie Mae executive Samuel Smith discovered Taylor, Bean & Whitaker Mortgage Corp. sold him a loan owned by someone else.”

Housing Wire – “Bernanke appoints Bialek Inspector General for CFPB” (6-30-11)

“Federal Reserve Chairman Ben Bernanke appointed Mark Bialek to inspector general of the central bank and the Consumer Financial Protection Bureau, effective July 25.”

Inman - “Unemployment rate falls in 74% of U.S. metros in May” (6-30-11)

“Jobless rates fell year-over-year in 74 percent of U.S. metros in May, according to the latest figures released Wednesday from the U.S. Bureau of Labor Statistics.”

Looking Back:

One year ago, MBA released its Weekly Mortgage Applications Survey showing an 8.8 increase in mortgage refinance applications.  Foreclosure sales saw a 14% decrease in the first quarter of 2010.  Almost 25% of the homes in Huntington Beach were distressed properties. 

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 6/21/11

Tuesday, June 21st, 2011

Today’s News Synopsis:

Housing Wire reported that JP Morgan is expected to pay$153.6 in a settlement regarding misleading information with mortgage security transactions.  Bloomberg reported that the price of existing homes decreased in May to the lowest they have been in six months.  According to DS News, Moody’s Investors Service’s Delinquency Tracker recently showed that loan delinquency rates dropped four points to 9.18%.

In The News:

Inman – “Real estate sales stumble again in May” (6-21-11)

“After slipping in April, existing-home sales fell again in May compared to the month before, according to the latest monthly report from the National Association of Realtors.”

Housing Wire - “JPMorgan to pay $153.6 million to settle SEC charges in CDO deal” (6-21-11)

“JPMorgan Securities (JPM: 40.91 +1.06%) will pay $153.6 million to settle Securities and Exchange Commission charges that it misled investors in a complex mortgage securities transaction just as the housing market began to tank, the SEC said Tuesday. ”

Bloomberg - “Existing-Home Sales in U.S. Fell in May to Six-Month Low, May Be at Bottom” (6-21-11)

“Sales of existing U.S. homes decreased in May to the lowest level in six months, a sign that the housing market is lagging other parts of the economy.”

DS News - “Moody’s U.S. CMBS Loan Delinquencies Slip to 9.18%” (6-21-11)

“The delinquency rate on loans included in commercial mortgage-backed securities (CMBS) transactions fell four basis points in May to 9.18 percent, according to Moody’s Investors Service’s Delinquency Tracker (DQT), which tracks all loans in U.S. conduit and fusion deals with a current balance greater than zero.”

Inman – “FHA interest payoffs debate pits NAR vs. MBA” (6-21-11)

“It’s an issue that bubbled up on Capitol Hill last week and pits Realtors against mortgage bankers: the Federal Housing Administration’s long-standing policy of forcing borrowers to pay a full month’s worth of interest at closing when they pay off their loans anytime before the end of the month.  An influential senator, Ben Cardin, D-Md., is sponsoring legislation that would require FHA to charge only per diem interest on prepayments of loans.”

Housing Wire - “Former TBW exec sentenced to 40 months in prison” (6-21-11)

“Paul Allen, former CEO of the failed mortgage lender Taylor, Bean & Whitaker, was sentenced to 40 months in prison for his role in a $2.9 billion fraud scheme orchestrated by his boss and TBW Chairman Lee Farkas.”

Bloomberg - “MetLife Pushes Reverse Mortgages as Wells Fargo, Bank of America Retreat” (6-21-11)

“MetLife Inc. (MET), the biggest U.S. life insurer, is poised to become the No. 1 reverse-mortgage lender as Wells Fargo & Co. (WFC) and Bank of America Corp. (BAC) leave the market.”

DS News - “Distress Claims Smaller Share of Dwindling Existing-Home Sales” (6-21-11)

“Distressed properties accounted for just 31 percent of existing-home sales in May, the National Association of Realtors (NAR) reported Tuesday.”

The Sacramento Bee - “Pending home sales in state rise for first time in year and a half” (6-21-11)

“California pending home sales rose in May, posting the first year-over-year increase in 18 months, the California Association of Realtors said today.”

Orange County Register - “Home price bottom expected in 2013″ (6-21-11)

“The housing market is going to take a long time to recover, and home prices could continue dropping into 2013, experts told reporters and other industry insiders at a recently concluded real estate writers conference.”

Looking Back:

Since March 2009, 436,000 people had dropped out of the mortgage modification program. A survey from Grant Thornton LLP showed that 45% of bankers expected economic conditions to improve over the next 6 months following June 21, 2010. According to CoreLogic, national housing prices increased 2.6% in April 2010 compared to April 2009. Analyst Meredith Whitney believed the U.S. housing market would experience a second recession.

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 5/5/10

Wednesday, May 5th, 2010

Today’s News Synopsis:

The MBA reports mortgage loan application volume increased by 4 percent from last week. Treasury Department secretary Timothy Geithner is supporting a tax on the liabilities of banks. Laurie Goodman, an analyst at Amherst Securities Group LP, claims that second mortgages are threatening the housing market.

In The News:

Mortgage Bankers Association – “Purchase Applications Continue to Increase, Refinance Activity Declines in Latest MBA Weekly Survey” (5-5-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 30, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 4.0 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 5.1 percent compared with the previous week.”

Associated Press – “Pulte pares 1Q loss and now expects profit in 2010″ (5-5-10)

“PulteGroup Inc., the nation’s largest homebuilder, said Wednesday it slashed its loss in the first quarter and forecast it would be profitable this year. That would mark a major turning point for the builder, which has posted a loss now for 14 consecutive quarters as the worst housing downturn in decades unfolded.”

Housing Wire - “As Geithner Pushes Bank Tax, Outsourcers Look to Ease the Pressure” (5-5-10)

“In a speech today in front of the Senate Finance Committee, Treasury Department secretary Timothy Geithner renewed the push for the Financial Crisis Responsibility Fee, a tax on the liabilities of banks, proposed by the administration in January. The announcement comes at a time when bank wealth managers are becoming increasingly pressured by regulatory reform, according to a poll conducted by SEI, a third-party portfolio servicer.”

Housing Wire – “Senate Begins Considering Financial Reform Legislation” (5-5-10)

“The US Senate today resumes consideration of S 3217, the Restoring American Financial Stability Act. Senators could begin voting on the bill’s 55 amendments this week. At the same time, a separate bill that looks to regulate the over-the-counter (OTC) derivatives market could potentially be wrapped into the larger financial reform legislation, with one credit rating agency concerned that certain additions to potential amendment, if passed, may sap the market of players.”

Bloomberg - “Mortgage Bond Spreads at Widest in Five Months: Credit Markets” (5-5-10)

“Yields on Fannie Mae and Freddie Mac mortgage securities that guide U.S. home-loan rates climbed to the highest in five months relative to Treasuries as Europe’s worsening government finances lead investors to shun all but the safest assets.”

Bloomberg - “U.S. Lets Second Loans Threaten Housing, Goodman Says” (5-5-10)

“The U.S. government and the nation’s largest banks are still allowing second mortgages to jeopardize the housing market, according to Laurie Goodman, an analyst at Amherst Securities Group LP.”

Inman - “5 must-knows about hiring a home stager” (5-5-10)

“There’s no clear-cut career path to becoming a stager. Most, but not all, stagers have had some kind of professional training specific to staging.”

Inman - “Top 10 residential lenders: Quicken Loans, BB&T join the list” (5-5-10)

“Retail lenders Quicken Loans Inc. and BB&T Corp. elbowed their way onto a list of Top 10 residential lenders maintained by MortgageDaily.com for the first quarter, bumping MetLife Inc. and Flagstar Bank.”

Looking Back:

The median price of a home in March 2009 was $253,000. Bernanke predicted that the recession would end in the second half of 2009. Economists predicted that the Orange County and Los Angeles regions would lose 300,000 jobs in 2009.

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

Friday, April 30th, 2010

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Looking Back:

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

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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 1/12/10

Tuesday, January 12th, 2010

Today’s News Synopsis:

The Federal Reserve made $46.1 billion last year. The MBA predicts that mortgage originations will decline by 39 percent in 2010. According to Integrated Asset Services, national home prices fell by 0.3 percent in November of 2009. FHA reports that foreclosure starts on mortgages from Fannie Mae and Freddie Mac decreased by 15 percent from the second quarter to the third quarter of 2009.

In The News:

Los Angeles Times – “Fed’s reaction to crisis helps deliver record $46.1-billion profit” (1-12-10)

“The Federal Reserve today announced it made a record $46.1-billion profit last year, countering concerns that the central bank has put too much taxpayer money at risk in attempts to stabilize the financial industry.”

Housing Wire – “MBA Expects Mortgage Originations to Fall 40% in 2010″ (1-12-10)

“The mortgage finance industry will likely see a continued slow-down in 2010 as unemployment remains high and home sales slide, the Mortgage Bankers Association (MBA) said Tuesday at a media briefing over the state of the real estate industry. The MBA projected total mortgage origination on residential one- to four-family properties is likely to plummet to $1.28trn in all of 2010, from $2.11trn in all of 2009. The projection marks a 39% decline in total mortgage origination in 2010.”

Housing Wire – “MetLife to Provide Reverse Mortgage Program for ABA Banks” (1-12-10)

“The American Bankers Association (ABA) partnered with MetLife Home Loans to provide member banks a reverse mortgage program. Banks provide reverse mortgages to let homeowners convert their home into cash and can allow older borrowers to supplement social security, meet medical expenses and make home improvements.”

Housing Wire – “Tax Refund Gives KB Homes $100m Q4 Profit” (1-12-10)

“A tax return from profits earned during the housing bubble put KB Home (KBH: 15.72 -4.03%) in positive net profit territory in its fiscal year Q409 that ended Nov. 30. Excluding a $191.7m tax refund, KB Home would have lost $91m in the quarter, but instead posted a $100.7m, or $1.31 per share, net profit. With or without the tax refund, the quarter’s results are better than the $307.3m loss in Q408.”

Housing Wire – “IAS Price Index Dips on Declines in Northeast, Midwest” (1-12-10)

“The Integrated Asset Services (IAS) index of national house shows prices fell 0.3% in November, the collateral valuation and management services firm said. That’s better than the 0.5% decline in prices the index experienced in October and the 0.6% decrease in September.”

Housing Wire – “Sellers Cut Listing Prices on 21% of Homes: Trulia” (1-12-10)

“As of Jan. 1, 2010, sellers cut listing prices on 21% of homes currently on the US market, according to the real estate site, Trulia.com.”

Bloomberg - “U.S. Subpoenas 15 FHA Lenders With High Mortgage Defaults” (1-12-10)

“The U.S. Housing and Urban Development Department said it subpoenaed 15 mortgage companies today to seek out possible fraud in an effort to stem losses on loans insured by the Federal Housing Administration. HUD officials, who oversee the FHA mortgage insurance program, said they haven’t haven’t found any evidence of wrongdoing at the lenders, and were singling out those with the highest default rates.”

Bloomberg - “Life Insurers to Sidestep CMBS Losses, Barclays Says” (1-12-10)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., will sidestep losses on investments tied to commercial mortgages, said Eric Berg, an analyst with Barclays Plc. ”

Bloomberg - “PMI Drops After Goldman Sachs Sell Recommendation” (1-12-10)

“PMI Group Inc., the third-largest U.S. mortgage insurer, fell the most in five months after a Goldman Sachs Group Inc. analyst said he expects more losses as foreclosures increase.”

Inman - “More loans going bad, but more get help” (1-12-10)

“More homeowners fell behind on their payments during the third quarter of 2009, but fewer were funneled into the foreclosure process as loan servicers engaged in more loan workouts, modifications and short sales, according to a new report. Foreclosure starts on loans guaranteed by Fannie Mae and Freddie Mac fell 15 percent from the second quarter to the third quarter, the Federal Housing Finance Agency said in its quarterly Foreclosure Prevention and Refinance Report.”

Orange County Register – “Housing market warming up in south coast?” (1-12-10)

“In a typically slow quarter for real estate, all three south coast cities saw their expected market time speed up a bit, according to a biweekly report by Steven Thomas of Altera Real Estate. Two weeks ago, it would have taken an expected 6.86 months to sell all of Dana Point’s active home stock, which has sped up slightly to an expected 5.16 months.”

Looking Back:

One year ago, some economists estimated that the Modesto, Stockton, Bakersfield, Riverside and Sacramento housing markets would take the longest to recover. President Bush requested the remaining $350 billion of the financial rescue, and handed his economic authority to Barack Obama. Distressed home sales in Orange County decreased by 7.2 percent.

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The Norris Group Real Estate News Roundup 11/17/09

Tuesday, November 17th, 2009

Today’s News Synopsis:

Home sales increased by 2.8 percent from September to October in six Southern California counties. The MBA reports that 6.7 million households with mortgages are behind on their payments, or are in the foreclosure process. TransUnion conducted a study of 27 million credit files and found that 6.25 percent are delinquent.

In The News:

Office of Thrift Supervision - “Federal Regulators Issue Final Model Privacy Notice Form” (11-17-09)

“Eight federal regulatory agencies today released a final model privacy notice form that will make it easier for consumers to understand how financial institutions collect and share information about consumers. Under the Gramm-Leach-Bliley Act (GLB Act), institutions must notify consumers of their information-sharing practices and inform consumers of their right to opt out of certain sharing practices. The model form issued today can be used by financial institutions to comply with these requirements.”

DQNews - “Southland home sales up again, drop in median price smallest in 2 years” (11-17-09)

“Last month 22,132 new and resale houses and condos closed escrow in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 2.8 percent from 21,539 in September and also up 2.8 percent from 21,532 a year earlier, according to MDA DataQuick of San Diego.”

Wall Street Journal – “Ten Questions on the Volatile Housing Market” (11-17-09)

“But more than 6.7 million U.S. households with mortgages, or about 13%, are behind on their payments or are in the foreclosure process, according to the Mortgage Bankers Association. Eventually, many of them will lose those homes, sending more supply onto the market. Unemployment has continued to rise, and the housing market is unlikely to show a sustained recovery until job growth resumes.”

Housing Wire – “TransUnion Sees Delinquency Rise for 11 Quarters” (11-17-09)

“Overall mortgage delinquency of 60 or more days reached a record 6.25% in TransUnion’s ongoing study of a random selection of 27m credit files from its national consumer database. The rate is up from 5.81% in Q209 and is expected by the credit bureau to come in just under 7% by year-end 2009.”

Housing Wire – “Home Improvement Stores See Sales Declines” (11-17-09)

“Earnings were down in Q309 at the country’s two largest home improvement chains, The Home Depot (HD: 26.99 -2.39%) and Lowe’s (LOW: 21.48 -1.20%) as homeowners and renters alike show reluctance to begin improvement projects amid continued financial stress and increasing joblessness.”

Housing Wire – “CIT Posts 10th Straight Quarterly Loss” (11-17-09)

“CIT Group, a lender to small- and mid-sized businesses, posted a Q309 loss of $1.03bn, or $2.47 per share, as the company attempts to emerge from bankruptcy protection by the end of the year.”

Bloomberg - “Insurers Face $23 Billion Loss on Commercial Property” (11-17-09)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., may lose as much as $22.6 billion on investments in commercial real estate through 2011, Fitch Ratings said.”

Bloomberg - “FDIC Sells Most Real Estate Since 1994 on U.S. Banking Debacle” (11-17-09)

“The FDIC raised $727 million from building and land sales in the first nine months of 2009 compared with $1.16 billion in the whole of 1994, according to FDIC data. The Washington-based agency sold 1,706 properties, according to its Web site, the highest number since 2,045 in 1996.”

Bloomberg - “Homebuilder Confidence in U.S. Lower Than Forecast” (11-17-09)

“The National Association of Home Builders/Wells Fargo index of builder confidence held at 17 for a second month, the Washington-based association said today. A reading below 50 means most respondents view conditions as poor. The median forecast of economists in a Bloomberg News survey was for a reading of 19.”

NAHB - “2009-2010 Home Buyer Federal Tax Credit Fact Sheet” (11-17-09)

“Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for a tax credit of 10% of the home purchase price, up to a maximum of $6,500.”

Looking Back:

One year ago, the NAHB claimed that 56.1 percent of all new and existing homes that were sold were affordable to families who earned the national median income of $61,500 per year. Citigroup announced its plans to cut over 50,000 jobs. The FDIC hinted at a possible revisation of the $1.4 trillion debt-insurance program.

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The Norris Group Real Estate News Roundup 10/27/09

Tuesday, October 27th, 2009

Today’s News Synopsis:

The Senate is considering a proposal that would extend and cap the tax credit at $7,290. Interthinx estimates that mortgage fraud risk increased by 11 percent from quarter 2 to quarter 3 of 2009. Goldman Sachs claims that home price stabilization will not last, but Bank of America feels that the outlook for home prices is more positive.

In The News:

Los Angeles Times – “Campaign targets mortgage modification scams” (10-27-09)

“Wachter along with other industry experts still worry that rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales. First-time homebuyers can receive a credit of 10 percent of the sales price, up to $8,000. The real estate industry is lobbying Congress to extend the credit past the Nov. 30 deadline. Top Democrats in the Senate are pressing a plan that would prolong the credit but gradually phase it out over the next year.”

Housing Wire – “House Price Stabilize a Year Ahead of Schedule: RBS” (10-27-09)

“The US economy and housing market in particular are recovering well ahead of the schedule previously anticipated by analysts and market observers, according to commentary by Royal Bank of Scotland (RBS) economists.”

Housing Wire – “House Prices Post Seven Months of Yearly Improvement: Case-Shiller” (10-27-09)

“Home prices in the Standard & Poor’s (S&P)/Case-Shiller 10-City and 20-City Composite Home Price Indices, declined 10.6% and 11.3%, respectively, in August 2009 compared to August 2008.”

Housing Wire – “Mortgage Fraud Risk Surges 11% from Q209: Interthinx” (10-27-09)

“Fraud risk in the mortgage industry surged more than 11% from Q209 to Q309, according to a mortgage fraud risk index compiled by Agoura Hills, Calif.-based mortgage software developer Interthinx.”

Bloomberg – “MetLife, Lincoln May Avoid Commercial Mortgage Losses” (10-27-09)

“MetLife Inc., the biggest U.S. life insurer, and Lincoln National Corp. will probably sidestep commercial-mortgage losses because their biggest loans are ‘handily’ below property values, Barclays Plc said.”

Bloomberg – “Capmark Increased Office, Hotel Loans as Zell Saw Top” (10-27-09)

“In 2006 and 2007, Capmark originated $60 billion in commercial mortgage loans, most for office buildings, according to the Oct. 25 bankruptcy filing. While Capmark was lending, Zell was selling Equity Office Properties Trust at the top of the market for $39 billion, including debt.”

Bloomberg – “Goldman Sees ‘False Bottom,’ Merrill Sees ‘Treat’” (10-27-09)

“The stabilization in U.S. home prices won’t last, according to economists at Goldman Sachs Group Inc. in New York. Their counterparts at BofA Merrill Lynch Global Research see a ‘treat’ rather than a retreat”

Bloomberg – “Senate Close to Deal Replacing Homebuyer Tax Credit” (10-27-09)

“The deal would reduce the size of the tax credit to 10 percent of the sale’s price, capped at $7,290, the people said. The credit would be available on home purchases that are under contract by April 30, and borrowers would have 60 days more to close the sale. The existing credit is due to end Nov. 30.”

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