Sources:

New jobless claims drop to lowest level since 2008
California unemployment falls for 4th straight month in November
Mortgage Rates for 30-Year U.S. Loans Fall to 3.94% as Record Low Matched
SoCal home sales rise on declining prices
California November Home Sales
S.E.C. Sues 6 Former Top Fannie and Freddie Executives
FHFA extends loan data implementation deadline for GSEs
Attorney General Expect to Reach Settlement Before Christmas
FDIC Announces Settlement With Washington Mutual Directors and Officers
Foreign homebuyers clicking on depressed US housing markets
Realtors: We overcounted Hoem Sales for Five Years

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big events. In a top story, six former Fannie Mae and Freddie Mac top executives have been accused by the SEC of fraud involving securites.  The world’s largest banks are also being downgraded by Fitch, banks including Bank of America, Morgan Stanley, and Goldman Sachs.

In The News:

Los Angeles Times - “SEC accuses former Fannie Mae, Freddie Mac bosses of fraud” (12-16-11)

“Six former top executives of housing finance giants Fannie Mae and Freddie Mac were accused of securities fraud Friday by federal regulators for allegedly misleading investors about the size of the companies’ risky subprime mortgage holdings.  30-year fixed mortgage rates are at an all-time low of 3.94%.”

Realty Times – “30-Year Fixed-Rate Mortgage Matches All-Time Record Low at 3.94 Percent” (12-16-11)

“In Freddie Mac’s results of its Primary Mortgage Market Survey® (PMMS®), the average fixed mortgage rates at or near their all-time lows. The 30-year fixed matched the average all-time record low of 3.94 percent, and a new all-time record low was set for the 15-year fixed, both previously set in the October 6, 2011 Freddie Mac PMMS.“

San Francisco Chronicle - “Moratorium leads to dip in foreclosure filings” (12-16-11)

“U.S. foreclosure filings fell last month as delinquent homeowners got a holiday  break, RealtyTrac reported.  A total of 224,394 properties received notices of default, auction or  repossession, down 14 percent from a year earlier, the data seller said Thursday.”

CNN Money - “Fitch downgrades world’s largest banks” (12-16-11)

“The ratings firm Fitch downgraded a cluster of the world’s largest banks Thursday, pointing to trading challenges facing international markets.  The banks included Bank of America (BAC, Fortune 500), Morgan Stanley (MS, Fortune 500) and Goldman Sachs (GS, Fortune 500), as well as Europe’s Barclays, Societe Generale and BNP Paribas.”

Housing Wire - “Fed officials testify on European liquidity injections” (12-16-11)

“Steven Kamin, acting director of the division of international finance for the Federal Reserve, said in prepared congressional testimony that swap transactions to help Europe “present no exchange rate or interest rate risk to the Fed.”

Los Angeles Times – “California unemployment falls for 4th straight month in November” (12-16-11)

“California employers added 6,600 new jobs in November, driving the monthly unemployment rate down to 11.3%, its lowest level since the depths of the recession in June 2009.  The decline from October’s jobless rate of 11.7% marked the fourth consecutive month that the Golden State has generated jobs as it gradually replaces some of the 1.3 million lost in the worst economic downturn in half a century, the California Employment Development Department reported.”

Housing Wire – “Nevada AG sues LPS, alleging mishandled mortgage documentation” (12-16-11)

“Nevada Attorney General Catherine Cortez Masto filed suit against Lender Processing Services (LPS: 15.83 -8.71%) for allegedly falsify foreclosure documents with the state.”

DS News - “Mortgage Debt in the U.S. Continues to Diminish” (12-16-11)

“The ongoing turmoil still gripping housing markets across the country has manifested itself in the Federal Reserve’s macro assessment of household wealth and capital flow.”

Housing Wire - “MBIA moves to limit CMBS exposure” (12-16-11)

“Bond insurer MBIA (MBIA: 0.00 N/A) signed a deal this week to commute $20 billion of its insured exposure to shield the company from future risks on volatile commercial mortgage-backed securities.”

Hard Money Loan Closed

Compton, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $125,000 on a 4 bedroom, 2 bathroom home appraised for $238,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris will be speaking at the Real Estate Rewind at IRCA Los Angeles on January 3, 2012.

The Norris Group will be at the Real Estate Investor Rewind at CVREIA on January 10, 2011.

Looking Back:

6,111 new and resale houses and condos were sold in the Bay Area in November 2010, according to MDA DataQuick. Freddie Mac reported the 30-year mortgage rate rose to 4.83%. Statistics from CoreLogic show home prices declined 3.93% in October from July 2010. Three members of congress introduced a bill which would possibly put an end to the use of MERS by GSEs.

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.

In a big news story, mortgage applications are up 4.1% according to the most recent MBA Weekly Survey.  Home sales in Southern California increased last month from October and from the same time a year ago according to Housing Wire.  In other news, mortgage fraud is the highest in California despite mortgage activity being down in the third quarter.

In The News:

Mortgage Bankers Association - “Refinance Applications Increase as Rates Drop to 2011 Lows in Latest MBA Weekly Survey” (12-14-11)

“Mortgage applications increased 4.1 percent from one week earlier, driven by a surge in refinance applications, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 9, 2011.”

Housing Wire - “California ranks No. 1 for mortgage fraud” (12-14-11)

“Mortgage fraud activity slowed overall in the third quarter, but California ranks first in home loan fraud, with the state seeing as much as $204.2 million in losses on deceptive mortgage activity.”

Los Angeles Times - “New signs of trouble for Goldman Sachs” (12-14-11)

“Goldman Sachs, the once-mighty king of Wall Street, appears to be losing employees, market share and the confidence of investors.  One of the most outspoken Wall Street analysts. Richard Bove, announced this week that he is cutting his outlook for Goldman’s fourth-quarter earnings by 66%, estimating that the bank will earn 79 cents a share.”

San Francisco Chronicle - “U.S. Stock-Index Futures Rise; S&P 500 May Snap Two-Day Decline” (12-14-11)

“U.S. stock-index futures rose, indicating the Standard & Poor’s 500 Index will snap a two-day decline, amid mounting optimism that the world’s largest economy will remain insulated from the euro-area debt crisis.”

Housing Wire - “Foreign homebuyers clicking on depressed US housing markets” (12-14-11)

“Foreigners looking to purchase homes in the U.S. are increasing their online search activity for bargains, as sliding home prices continue to attract investors from around the globe — especially Canada.”

Hard Money Loan Closed

Rancho Cucamonga, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $190,000 on a 3 bedroom, 2 bathroom home appraised for $315,000.

In The News:

Bloomberg - “Morgan Stanley Real-Estate Fund Said Likely to Win New Deadline” (12-14-11)

“Morgan Stanley’s (MS) $4.7 billion real-estate fund, known as MSREF VII, will probably win approval to extend the deadline for finding new investments into 2013, aperson familiar with the discussions said.”

Housing Wire - “SoCal home sales rise on declining prices” (12-14-11)

“The number of homes sold in Southern California rose modestly last month from both October and a year earlier as investors and first-time buyers targeted homes priced below $400,000.”

Bloomberg - “San Francisco Bay Area Home Prices Fall as Distressed-Property Sales Gain” (12-14-11)

“San Francisco Bay Area home pricesfell 4.3 percent last month from a year earlier as distressed properties made up a greater share of sales, DataQuick said.”

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris will be speaking at the Real Estate Rewind at IRCA Los Angeles on January 3, 2012.

The Norris Group will be at the Real Estate Investor Rewind at CVREIA on January 10, 2011.

Looking Back:

Robo-signing took an effect on foreclosures in the Western states, which decreased almost 40%.  Oustanding debt on commercial/mulitfamily mortgages decreased 1.3% in the third quarter of 2010.  In the first half of 2010, suspicious activity reports for mortgage fraud increased 7% from one earlier.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

DS News reported optimism in the housing market as housing prices are showing signs of reaching their lowest and stabilizing despite continuing price declines.  According to Housing Wire, a settlement was reached between Morgan Stanley and MBIA regarding credit default swaps.  In addition, the Realty Times reported housing will play a big part in the upcoming 2012 election.

In The News:

Realty Times – “Housing to Be Key Factor in 2012 Election” (12-13-11)

“HouseLogic, the consumer website for the National Association of Realtors® has released the results from their latest survey. They found that when it comes to the upcoming 2012 election, jobs and housing are at the forefront of voters’ minds.”

Housing Wire - “Morgan Stanley and MBIA reach settlement over CDS” (12-13-11)

“Morgan Stanley (MS: 15.74 +2.34%) said Tuesday that it has reached a comprehensive settlement with MBIA (MBI: 11.52 +1.05%) over credit default swaps that better positions the firm for Basel III compliance by resolving outstanding legacy exposures.”

DS News - “Prices Decline Slightly But Show Signs of Stabilizing” (12-13-11)

“While home values are continuing to decline, they are beginning to stabilize as the market nears the bottom, according to the Zillow Real Estate Market Report, released Tuesday.”

Bloomberg - “Mortgage Bonds Rally as Fed Backstop Seen” (12-13-11)

“Relative yields on mortgage-backed securities that guide new loan rates fell to the lowest in five months as investors wager the Federal Reserve is on standby to expand its holdings if the U.S. economy or Europe’s sovereign debt crisis worsens.”

San Francisco Chronicle - “Real estate recovery likely to be slow” (12-13-11)

“Fair warning to U.S. real estate  players: Resign yourselves to “a slowing grind-it-out recovery” in 2012, as  “enduring economic doldrums” continue to weigh heavily on the market.”

Hard Money Loan Closed

Fontana, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $140,000 on a 4 bedroom, 2 bathroom home appraised for $245,000.

In The News:

Housing Wire – “Optimism rises among small businesses” (12-13-11)

“Small businesses grew more confident again in November, though optimism remains well below the pre-recession average.  The National Federation of Independent Business reported an increase to 92 in its optimism index, up from 90.8 in October. That’s still lower than the 100 score the index averaged before 2008.”

DS News – “Attorneys General Expect to Reach Settlement Before Christmas” (12-13-11)

“The state attorneys general and the nation’s five largest mortgage servicers have been supposedly close to a settlement for quite some time. The latest estimate, according to the Des Moines Register is that they are likely to reach a settlement before Christmas.”

Wall Street Journal - “Home Bargains Abound, But Willing Lenders Are Rare Breed” (12-13-11)

“Faced with finicky lenders, would-be home buyers are increasingly turning to Dad, Grandma or rich Uncle Barton—even perfect strangers they met online. While these solutions are understandable, given the abundant bargains on the market, they also present significant risks.”

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris will be speaking at the Real Estate Rewind at IRCA Los Angeles on January 3, 2012.

The Norris Group will be at the Real Estate Investor Rewind at CVREIA on January 10, 2011.

Looking Back:

22.5% of all mortgages were underwater in the 3rd quarter of 2010, according to CoreLogic. The FHA extended deadlines for condo projects seeking to renew their mortgage insurance. Altera Real Estate reported demand for O.C. homes decreased by 12%.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

A big story in the news is construction on homes has increased 15% as of last month according to NAHB.  The Mortgage Bankers Association released their latest survey showing that mortgage applications decreased week-over-week.  A new bill is being introduced putting new standards on issuing a government-backed mortgage, this time considering energy costs.

In The News:

Mortgage Bankers Association – “$68.8 Billion of Total Multifamily Lending in 2010; a 31 Percent Increase from 2009″ (10-19-11)

“In 2010, 2,548 different multifamily lenders provided a total of $68.8 billion in mortgage financing for apartment buildings with five or more units, according to a report from the Mortgage Bankers Association (MBA). The 2010 dollar volume
represents a 31 percent increase from 2009 levels. Just one percent of the lenders accounted for 51 percent of the dollar volume, while three-quarters of the lenders made five or fewer loans over the course of the year.”

Bloomberg - “U.S.Banks See Rising Investor-Refund Demands” (10-19-11)

“Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM) reported more demands from investors to repurchase faulty mortgages made after 2008, when the banks said they upgraded their standards to curb defaults.”

Housing Wire - “Citigroup to refund investors $285 million for mortgage-related CDO” (10-19-11)

“A Citigroup (C: 30.66 +2.61%) broker-dealer subsidiary sold investors on a $1 billion collateralized debt obligation tied to the housing market, while betting the CDO would default, according to the Securities and Exchange Commission.”

San Francisco Chronicle - “Morgan Stanley earns $2.2 billion, stock rises” (10-19-11)

“Morgan Stanley emerged from the tumultuous third quarter in better shape than  most of its Wall Street rivals.  While other banks reported declines in trading and advisory revenue, Morgan  Stanley increased its income from advising companies on deals and trading for  its clients. The New York investment bank said Wednesday it earned $2.2 billion  in the period, but that also included a big accounting gain.”

Realty Times - “Mortgage Applications Increase as Low Mortgage Rates Remain Steady” (10-19-11)

“As markets changed directions this past week with stocks moving higher, pressure was put on mortgage rates as MBS prices suffered. In the end, Freerateupdate.com’s survey of wholesale and direct lenders show that mortgage rates remained the same regardless of market volatility.”

NAHB - “Housing Starts Rise 15 Percent in September” (10-19-11)

“Nationwide housing starts rose 15 percent to a seasonally adjusted annual rate of 658,000 units in September, marking the strongest pace of residential construction since April of 2010, according to figures released by the U.S. Commerce Department today. The gain was largely attributed to a sharp increase on the multifamily side, which has been trending upward due to increased demand for rental apartments.”

Mortgage Bankers Association - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (10-19-11)

“Mortgage applications decreased 14.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 14, 2011, which included the Columbus Day holiday.”

Housing Wire - “New bill to include borrower energy costs in mortgage underwriting” (10-19-11)

“A bill introduced Wednesday would force lenders to consider a borrower’s expected energy costs when underwriting a government-backed mortgage.”

DS News - “REOs: Where Are They Now?” (10-19-11)

“In 2006, just as the housing bubble popped, over 355,000 properties proceeded through a foreclosure auction. CoreLogic’s data show that approximately 34 percent (122,000) were successfully bid on by an investor. The remaining 66 percent (233,000) went back to the banks as REO properties.”

Looking Back:

18,091 new and resale homes were sold in Southern California, said MDA DataQuick. Moody’s reported commercial real estate prices fell 3.3% from the previous month. A survey from American Strategies and Myers Research showed 77% of adults considered buying a home to be a good financial decision in general.

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.

According to Housingwire, Freddie Mac just completed a new modification option they will make available at the beginning of October that will allow mortgage servicers to more closely evaluate those eligible for the HAMP program.  Bloomberg reported the number of people who owed more than the worth of their property decreased, but this was due to the increase in foreclosures the second quarter.  Foreclosures are especially seeing increases in the western states.

In The News:

Bloomberg - “U.S. Homeowners ‘Underwater’ on Mortgages Drop as Foreclosures Increase” (9-13-11)

“The number of U.S. homeowners who owe more than their property is worth slipped in the second quarter as more residences were lost to foreclosure, according to a report today from CoreLogic Inc. (CLGX).”

Housing Wire – “Freddie Mac finalizes new modification option” (9-13-11)

“Freddie Mac finalized requirements for a new modification option that will be made available to qualified borrowers on Oct. 1.”

DS News - “Fannie Mae Opens Sacramento Mortgage Help Center” (9-13-11)

“Fannie Mae last week opened a mortgage help center in Sacramento, California, to provide free education and counseling services to struggling local homeowners with Fannie Mae-owned mortgages.”

Inman - “Foreclosure starts surge in Western states” (9-13-11)

“Foreclosure starts jumped by double digits from July to August in four out of five Western states tracked by ForeclosureRadar, reversing what had been a declining trend over the past several months, the company said.”

Los Angeles Times - “FDIC approves ruling requiring ‘living wills’ for largest banks” (9-13-11)

“The Federal Deposit Insurance Corp. on Tuesday approved a rule requiring the nation’s largest banks to submit “living wills” to help regulators shut them down in an orderly way if they are seized on the brink of failure.”

Housing Wire – “JPMorgan Chase brings $1 billion CMBS to market” (9-13-11)

“JPMorgan Chase (JPM: 32.49 +0.22%) is coming to market with $1 billion of commercial mortgage-backed securities to the market containing 44 loans on 209 properties, according to the pre-sale report from credit rating agency
Morningstar.”

DS News - “Government Guarantees Called Into Question at Senate Hearing” (9-13-11)

“The Senate Banking Committee held a hearing Tuesday on housing finance reform, the first of three housing-related hearings on the agenda this week. The issue of government guarantees for mortgages came under fire.”

Bloomberg - “Morgan Stanley’s Multi Gets $1.2 Billion Loan Package, New Chief Executive” (9-13-11)

“Multi Corp. BV, the European mall developer that’s 85 percent owned by a Morgan Stanley (MS) fund, named a new chief executive officer as it announced a new 850 million-euro ($1.16 billion) financing package.”

Realtor Magazine - “Home Sale Delays from Irene Still Plague East Coast” (9-13-11)

“Closings on thousands of homes under contract from North Carolina to New York City are being delayed, put on hold in the aftermath of Hurricane Irene. Banks and lenders are requesting new inspections of homes that are currently sold, wanting to ensure the homes in Hurricane Irene’s path were not damaged and are still at the value they were originally appraised at.”

Inman – “Startup rolls out ‘apartment matching engine’” (9-13-11)

“Apartment hunters and technology aficionados, take note: Vertical Brands, a San Francisco-based startup, this week officially launched what it claims is the “first online apartment matching engine.”

Looking Back:

Many predictions were being made regarding the economy and the housing market. Most of the articles had an overall positive outlook on the economy, while most had a negative outlook for the housing market. New delinquencies decreased 8.5% in August 2010. As far as September 2010, the FDIC said 119 banks failed so far.

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.

In the wake of the U.S. credit rating being dropped, stocks decreased and the Dow is now below 11,000, the lowest it has been since November.  Bloomberg reported Bank of America was sued by AIG in regards to false information regarding mortgage-bond investments.  Inman reported rentals are increasing while homeownership is decreasing.   

In The News:

CNN Money - “Stocks Plunge Following S&P Downgrade” (8-8-11)

“U.S. stocks plunged deep into the red on Monday as fearful investors faced the news that the United States had lost its coveted “AAA” credit rating.”

Mortgage Bankers Association - “MBA Hires Brian Hartman to be Associate Vice President of Marketing” (8-8-11)

“David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), today announced the appointment of Brian Hartman as Associate Vice President of Marketing. In this role, he will help develop, execute and manage MBA’s direct marketing programs.’“

Bloomberg - “AIG Plans to Sue Bank of America Over Losses Tied to Mortgage Underwriting” (8-8-11)

“American International Group Inc. (AIG), the bailed-out insurer, sued Bank of America Corp. over $10 billion in losses on mortgage-bond investments. The bank dropped 16.5 percent in New York trading.”

DS News - “Servicers’ Policies on Foreclosures in Bankruptcy Courts Being Examined” (8-8-11)

“Eleven mortgage servicers recently received letters from two senators inquiring about their policies regarding foreclosures in bankruptcy courts.”

Inman - “Demand for real estate rentals rises, homeownership rate drops” (8-8-11)

“In the teeter-tottering relationship between rental housing and homeownership, demand for rentals stayed up in the second quarter of 2011 while homeownership remained static, according to residential vacancy and homeownership data released by the U.S. Census Bureau at the end of July.”

Housing Wire – “Freddie Mac narrows loss in 2Q” (8-8-11)

“Freddie Mac swung to a $2.1 billion loss in the second quarter following a profit in the first quarter.  But Freddie narrowed its loss from the $4.7 billion loss it recorded in the year-ago period.”

Realty Times - “Real Estate Outlook: Market Continues to Struggle” (8-8-11)

“Will a change to the mortgage interest deduction threaten a housing market recovery? This is the message from the National Association of Realtors® (NAR). “As the leading advocate for housing and homeownership, NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy,” says NAR Chief Economist Lawrence Yun. “The MID facilitates home ownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working middle-class families”.”

Bloomberg - “Bulk Buying Would Ease Home Crisis, Morgan Stanley Analysts Say” (8-8-11)

“Encouraging investors to buy foreclosed homes in bulk would help shrink the U.S. housing surplus, stabilize property prices and provide affordable rentals, Morgan Stanley (MS) housing analysts said in a report today.”

Rismedia - “June Prices Still in Red; Northeast Booms” (8-8-11)

“National average home prices in June were still 7.9 percent below a year ago, which was the height of the boomlet spawned by the tax credit. However, prices are still up 4.1 percent over the first quarter.”

Housing Wire – “Mortgage credit growth drops 4% over last year” (8-8-11)

“Credit conditions across the United States remained mixed in July, with growth in new mortgage credit slipping 4% in July compared to year-ago levels, according to a new report from CreditForecast.”

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.

As of June, existing home sales are at their lowest they have been in seven months according to Bloomberg.  However, the prices for commercial property increased 6.3% in May according to Moody’s.  Wells Fargo was fined $85 million by the Federal Reserve for producing false information on incomes and pressuring consumers to use subprime loans who were already borrowing prime mortgages. 

In The News:

Housing Wire - “More Americans to exit homeownership” (7-20-11)

“Political deadlock mixed with terrible housing market conditions will eventually turn America into a society of renters, according to the latest Housing Market Insights report from Morgan Stanley (MS: 21.72 +3.53%).”

Bloomberg - “U.S. Existing-Home Sales Unexpectedly Declined in June to Seven-Month Low ” (7-20-11)

“Sales of previously owned U.S. homes unexpectedly declined in June to a seven-month low as the industry struggled to overcome rising unemployment and foreclosures.  Purchases dropped 0.8 percent to a 4.77 million pace, data from the National Association of Realtors showed today in Washington.”

DS News - “Distressed Properties Comprise Smalle Share of Declining Home Resales” (7-20-11)

“Foreclosures and short sales made up 30 percent of all existing-home sales in June, according to data released Wednesday by the National Association of Realtors (NAR).”

RisMedia - “Regional News: Housing Trust Funds Receives Federal Grant” (7-20-11)

“A countywide organization that promotes below-market-price housing has received a $600,000 grant from the federal government.   The San Luis Obispo County Housing Trust Fund says it will use the grant, which comes from the Treasury Department, to subsidize housing projects in the county.”

Bloomberg – “U.S. Commercial Property Prices Increased 6.3% in May, Moody’s Says” (7-20-11)

“U.S. commercial property prices increased in May for the first time in six months as a rebound in distressed real estate helped boost values, according to Moody’s Investors Service.  The Moody’s/REAL Commercial Property Price Index rose 6.3 percent from April, the largest gain since the measure began in 2000.”

Los Angeles Times - “Consumer Financial Protection Bureau gets strong support in poll” (7-20-11)

“Democrats and Republicans in Washington remain sharply split on the new Consumer Financial Protection Bureau. But a new poll from Consumers Union shows that about three-quarters of the public supports it.”

Housing Wire - “Fed fines Wells Fargo $85 million for questionable mortgages” (7-20-11)

“The Federal Reserve fined Wells Fargo (WFC: 28.70 +1.02%) $85 million and issued a cease and desist order for allegedly steering prime mortgage borrowers into subprime loans, along with falsifying income information on applications.”

The Wall Street Journal - “Investments Muddy Dirt-Bond Holders” (7-20-11)

“During the boom years, as big housing developments mushroomed throughout the country, developers worked with local governments to raise billions of dollars for roads, sewers and sidewalks through a municipal-debt security known as “dirt bonds’.”

Realty Times - “Mortgage Rates Decline as Economic Data Continues to Influence Investors” (7-20-11)

“As economic data continues to influence investors with their decisions, mortgage rates declined again last week bringing them to their lowest levels of 2011. Freerateupdate.com’s daily survey of wholesale and direct lenders show that conforming 15 year fixed mortgage rates decreased by .125% and are at 3.375%.”

DS News - “California Defaults Reach Lowest Rate in Four Years” (7-20-11)

“For the second quarter of 2011, California homes entering the foreclosure process decreased to their lowest rate in four years, according to DataQuick, a San Diego-based company
that tracks nationwide real estate activity.”

Looking Back:

The MBA reported independent mortgage bankers and subsidiaries made an average profit of $606 on each loan they originated in the first quarter of 2010. Statistics from the Commerce Department showed housing starts fell 5% from May 2010. FHA required borrowers to have at least a 580 FICO score to buy a home with a minimum 3.5 percent down payment. First and second mortgage default rates declined to 3.3% and 2.4%, according to Experian.

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.

The MBA’s weekly survey shows mortgage applications decreased 22.8 percent. Morgan Stanley predicts U.S. home prices will decline as much as 11% by 2012, while Douglas Yearley of Toll Brother expects home sales to increase in 2012.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (12-8-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending December 3, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 0.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 22.8 percent compared with the previous week, which included the Thanksgiving Holiday.”

Housing Wire – “Refinancing opportunity for $500 billion mortgage pool wiped out: Deutsche Bank” (12-8-10)

“A $500 billion pool of 30-year fixed-rate mortgages, wrapped in the 4% coupon stack on Fannie Mae and Freddie Mac bonds, is no longer available for refinancing due to rising interest rates.”

Bloomberg - “U.S. Home Prices to Fall Up to 11% Before 2012 Bottom, Morgan Stanley Says” (12-8-10)

“U.S. home prices will decline as much as 11 percent as weak demand and rising inventory extend the housing slump into 2012, according to Morgan Stanley. Prices will be as much as 36 percent below their 2006 peak before finding a bottom, Morgan Stanley analysts led by Oliver Chang wrote in a report today.”

Bloomberg - “Toll Brothers CEO Sees Nascent Rebound in U.S. Home Sales” (12-8-10)

“The worst is over for the U.S. housing market and a rebound will gain momentum in 2012, according to Douglas Yearley, chief executive officer of Toll Brothers Inc.”

Orange County Register – “Hot real estate? O.C. factories!” (12-8-10)

“Increased demand for industrial space will cause vacancy rates to fall 2.1 percentage points over the next two years, from 6.6% last summer to 4.5% by 2012. Average monthly rent will increase 30% by the spring of 2012, rising from a low of 49 cents per square foot last summer to 64 cents a foot in the spring of 2012.”

Looking Back:

One year ago, Chase Home Finance reported that 29 percent of its HAMP trial plans failed to become permanent. Research from Altos Research showed that home prices decreased in 24 of the 25 markets that the company observed. A credit analysis of 27 million consumers lead TransUnion to estimate that delinquencies of 60 days or more would drop 3 percent by the end 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 200 podcasts in our free investor radio archive.

Mortgage applications decreased 8.9% this week, according to the MBA. Fannie Mae predicts 2010 sales will total 7.4% less than sales in 2009. UCLA economists predict the unemployment rate will remain above 10% until the end of 2012. GSEs have lost $226 billion since the end of 2007.

In The News:

Mortgage Bankers Association - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (9-15-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September 10, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 8.9 percent on a seasonally adjusted basis from one week earlier.  This week’s results include an adjustment to account for the Labor Day holiday. On an unadjusted basis, the Index decreased 27.4 percent compared with the previous week.”

Reuters - “Fannie Mae now sees US home sales drop, not rise” (9-15-10)

“The company is predicting total U.S. sales of new and existing homes in 2010 will drop 7.4 percent from 2009, compared with expectations for a 0.8 percent rise in its forecast last month. It means sales would fall to about 5.12 million homes from 5.53 million units in 2009.”

The Press Enterprise – “UCLA economists say growth will be hard to notice” (9-15-10)

“Now UCLA’s economists say it’s unlikely there will be enough job growth to drive the state’s unemployment level below 10 percent until the end of 2012.”

Housing Wire – “Barr: GSEs won’t exist once reform takes root” (9-15-10)

“Fannie Mae and Freddie Mac won’t exist in their current state once financial reform takes root, according to a top Treasury Department official. Prior to conservatorship two year ago, the government-sponsored entities operated under a ‘heads I win, tails you lose’ system that is unacceptable, Michael Barr said Wednesday before a subcommittee of the House Committee on Financial Services.”

Housing Wire – “FHFA estimates GSEs final cost to taxpayers could reach $400 billion” (9-15-10)

“Speaking before the House Financial Services Committee today, Edward DeMarco, acting director of the Federal Housing Finance Agency maintains that the government-sponsored enterprises could still cost the taxpayers $400 billion. Fannie Mae and Freddie Mac were taken into conservatorship by the FHFA in September 2008. Since the end of 2007, the GSEs have lost $226 billion with 73% of that stemming from the single-family credit guarantee business. The Treasury has recorded losses of $148 billion attributable to its bailout of Fannie and Freddie.”

Housing Wire – “New project inquiries at residential architecture firms down 24% in 2Q: AIA” (9-15-10)

“Kermit Baker, the chief economist at AIA, said business conditions at architecture firms hit an all-time low in 2008 but had been making a steady recovery to the first quarter of 2010, when these companies reported the first increase in billings in nearly three years.”

Housing Wire - “Zillow 30-year mortgage rates go up, CEO steps down” (9-15-10)

“The 30-year, fixed-mortgage rate increased last week to 4.32% from a near-record low of 4.27% the week prior, according to the Zillow Mortgage Marketplace weekly update.”

Bloomberg - “U.S. Home Prices Face 3-Year Drop as Inventory Surge Looms” (9-15-10)

“Shadow inventory — the supply of homes in default or foreclosure that may be offered for sale — is preventing prices from bottoming after a 28 percent plunge from 2006, according to analysts from Moody’s Analytics Inc., Fannie Mae, Morgan Stanley and Barclays Plc. Those properties are in addition to houses that are vacant or that may soon be put on the market by owners.”

Looking Back:

One year ago, a survey from the National Association of Home Builders showed that buyers were unwilling to pay more for a new “green” home. DQNews reported that the total sales in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange Counties fell 10.8 percent from the previous month. Both Ben Bernanke and Bank of America believed the U.S. financial downturn was coming to an end. The Coopers Korpacz Real Estate Investor Survey estimated that U.S. commercial property would not recover until 2012.

MDA DataQuick reports A total of 22,270 new and resale houses and condos closed escrow in Southern California last month. According to the NAHB, builder confidence in the market for newly built, single-family decreased this month. Having a home with a view is on the top 10 list of preferences for 44.5 percent of men. Morgan Stanley’s research has lead the company to conclude that low mortgage rates will prevent a double dip in prices.

In The News:

DQNews - “Southland median sale price back over $300K; sales at 4-year high” (6-15-10)

“A total of 22,270 new and resale houses and condos closed escrow in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 9.7 percent from 20,299 in April, and up 7.2 percent from 20,775 in May 2009, according to MDA DataQuick of San Diego.”

NAHB - “Builder Confidence Declines in June” (6-15-10)

“Snapping a string of two consecutive monthly gains, builder confidence in the market for newly built, single-family homes fell back to February levels, before the beginning of the home buyer tax credit-related surge, according to results of the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI dropped five points to 17 in June.”

Los Angeles Times – “California’s economy to see sluggish recovery this year, UCLA economists say” (6-15-10)

“California stands to gain some jobs this year but recovery will be sluggish, and the state’s inland areas will bear the brunt of the continuing economic pain, according to a forecast scheduled to be released Tuesday by UCLA’s Anderson School of Business.”

Inman - “Top 10 sought-after home features” (6-15-10)

“Men and women’s top 10 preferences were largely the same with two exceptions: having a view made it onto the men’s list (and not the women’s list), with 44.5 percent of men saying it was a high priority; and wood floors made it onto the women’s list (and not the men’s), with 40.9 percent of women ranking them highly.”

Housing Wire – “Low Mortgage Rates Help Block Double-Dip Threat: Morgan Stanley” (6-15-10)

“The US economics team at financial firm Morgan Stanley (MS: 25.96 +2.49%) says in their latest research report that recent gains in the nation’s economy point to a remote chance of a so-called double dip — where recent upticks in economic activity are only temporary — citing low mortgage rates as a key driver in drawing this conclusion.”

Housing Wire – “Shadow Inventory to Take 3 Years to Clear: Standard & Poor’s” (6-15-10)

“The shadow inventory of distressed properties that back residential mortgage-backed securities will take nearly three years to clear at the current sales rate, according to the credit rating agency, Standard & Poor’s (S&P). S&P puts the total principal balance of the shadow inventory at $480bn or 30% of the entire non-agency market.”

Housing Wire – “BofA Permanent HAMP Modifications Passes 70,000 in May” (6-15-10)

“Bank of America (BAC: 15.76 +2.27%) pushed its total number of permanent modifications under the Home Affordable Modification Program (HAMP) to roughly 70,000 in May, up from 56,400 in April.”

Housing Wire – “MGIC Writes $800m in Monthly Mortgage Insurance, Denies Hundreds of Claims” (6-15-10)

“Mortgage Guaranty Insurance Corp. (MGIC), the principal subsidiary of MGIC Investment Corp. (MTG: 9.12 +8.19%), wrote $800m of primary new mortgage insurance in May, according to monthly operations data. The company denied or rescinded — or canceled the policy relating to — almost 1,000 mortgage insurance claims in the month, helping to further reduce the number of delinquencies on its books, according to a press release.”

Housing Wire – “More Funds Repaid to TARP than Outstanding in May: Treasury” (6-15-10)

“Treasury noted in the April update on TARP that it expects to spend less than $550bn of the $700bn authorized for the program, and expects to recover all but $117bn — an estimate that was subsequently revised to $105.4bn. Of $384bn in total TARP disbursements, more than half — or $194bn — was repaid through May, leaving only $190bn outstanding. The sale of 1.5bn shares of Citigroup (C: 3.975 +2.45%) pushed the repayments past outstandings for the first time in TARP’s history.”

Housing Wire – “In These Thin Times, House Sizes Also Begin to Shrink” (6-15-10)

“In 2007, the average single-family home in the United States peaked at 2,521 square feet. That number did not vary greatly into 2008. However, according to a 2009 report from the Census Bureau, it’s now at an average of 2,438 square feet.”

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.