The Norris Group Blog

Today’s News Synopsis:

According to Bloomberg News, mortgage defaults were up by 26% in the third quarter.  Fannie Mae and Freddie Macs’ foreclosure attorney network programs will be going through changes by order of the FHFA.  Foreclosure filings were up in August for the third quarter according to the Los Angeles Times, and the sale of short sale properties could help increase housing prices.

In The News:

Bloomberg – “California Mortgage Defaults Rise 26%” (10-18-11)

“Mortgage defaults in California rose 26 percent in the third quarter from the previous three months as lenders began working through a backlog of delinquent loans after a nationwide delay, according to DataQuick.”

Housing Wire - “Moody’s: CMBS delinquencies up to 9.36% in September” (10-18-11)

“The delinquency rate of loans in commercial mortgage-backed securities rose in September while total issuance fell as more seasoned loans left CMBS than new deals came into the sector, according to Moody’s Investors
Service.”

DS News - “Fannie Mae and Freddie Mac to Do Away With Attorney Networks” (10-18-11)

“The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to transition away from their current foreclosure attorney network programs, and move to a system where mortgage servicers will select law firms based on minimum qualifications and uniform criteria.”

Inman - “Companies offer real estate rewards programs” (10-18-11)

“Real estate franchisor Re/Max LLC has rolled out a  loyalty program for agents and clients.  The program, Re/Max Rewards, is powered by loyalty platform provider Next Jump.”

Los Angeles Times - “Number of Californians entering foreclosure jumps in third quarter” (10-18-11)

“A big August surge in foreclosure actions by Bank of America and Bank of New York sent the number of California homeowners entering foreclosure to levels not seen in a year.  The third-quarter jump in notices of default, the first formal step in the foreclosure process, came after such filings had dropped to a three-year low earlier this year. Defaults were up 25.9% from the prior quarter, according to according to San Diego-based DataQuick, a real estate information service.”

Bloomberg - “Home Short Sales Rise in ‘Dramatic Shift’ That May Boost U.S. House Prices” (10-18-11)

“U.S. home prices may get a boost from an unlikely source: a pickup in sales of properties in default before they reach the stage where they are repossessed by the bank and sold.  There has been a “dramatic shift” in banks’ willingness to sell a property for less than the mortgage balance to avoid foreclosing, said Ron Peltier, chairman and chief executive officer of HomeServices of America Inc., the second-biggest U.S. residential brokerage”

San Francisco Chronicle - “The new normal: Higher bank fees are here to stay” (10-18-11)

“The latest third-quarter earnings reports from this week confirm that banks are  struggling to make money the old-fashioned way, by lending money to consumers  and businesses. The main reason: interest rates are at historic lows. That makes  it harder for banks to charge high rates on loans.”

Housing Wire – “Buyer of invalid foreclosure loses appeal to clear property title” (10-18-11)

“A man who bought a house that turned out to be an invalid foreclosure cannot sue the previous homeowner over his clouded title because the bank foreclosed before receiving an actual mortgage assignment, the Massachusetts Supreme
Judicial Court said Tuesday.”

Bloomberg - “Homebuilders Rise Most in Two Years as Sentiment Index Unexpectedly Climbs” (10-18-11)

“U.S. homebuilders rose the most in two years after an index of developer sentiment unexpectedly increased to its highest level since May 2010, spurring optimism that demand for new houses may be improving.”

DS News - “States and Servicers Consider New Proposal for Aiding Those Underwater” (10-18-11)

“Help for underwater homeowners has reportedly moved from principal writedowns to refinancing in settlement negotiations between state attorneys general and the nation’s five largest mortgage servicers.”

Looking Back:

A Rasmussen survey found that 31% of homeowners expected their home prices to fall over the next year, while 50% expected their home values to increase over the next 5. According to the NAHB, builder confidence increased for the first time in 5 months in October 2010. The Federal Reserve Bank of New York reported over 66% of small businesses experienced declines in sales and revenue during the first half of 2010. Robert Curran believed demand for housing would not return any earlier than late winter of 2010.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor 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.