New U.S. home sales declined 2.2% in December according to Bloomberg.  In other news, 30-year mortgage rates increased for the first time from their lowest recorded level, having come about after the Federal Reserve promised to keep interest rates near 0.  In a recent vote in the Senate, Obama was allowed to raise the debt ceiling to $16.4 trillion.

In The News:

Bloomberg – “Foreclosure Properties Fall to 20% of Home Buys” (1-25-12)

“Foreclosure and distressed sales fell to 20 percent of U.S. home purchases in the third quarter of last year as legal scrutiny of property seizures reduced the number of deals, according to RealtyTrac Inc.”

DS News - “Illinois AG Sues S&P” (1-26-12)

“Illinois Attorney General Lisa Madigan filed a lawsuit against Standard & Poor’s (S&P) this week alleging the ratings agency inflated ratings of mortgage-backed securities investments, an act Madigan believes stemmed the financial crisis.”

Bloomberg - “Sales of U.S. New Homes Unexpectedly Decline in December” (1-26-12)

“Sales of new U.S. homes unexpectedly declined in December for the first time in four months, capping the slowest year on record for builders.”

NAHB - “Remodeling Market Index Rises to Five-Year High” (1-26-12)

“Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011. Released today, the RMI increased to 46.6 in the fourth quarter from 41.7 in the third quarter.”

Bloomberg – “30-Yr Mortgage Rates Rise From Record Low” (1-26-12)

“Rates for U.S. 30-year mortgages climbed from the lowest level on record after Federal Reserve officials pledged to keep their benchmark interest rate near zero through at least late 2014 to help bolster the economy.”

Housing Wire - “Unemployed homebuilders migrate to multifamily jobs” (1-26-12)

“Single-family housing starts plummeted in 2011, but construction workers are finding jobs anyway by migrating to multifamily projects.”

Los Angeles Times - “Recovery roadblock?  Mortgage burdens keep job seekers from moving” (1-26-12)

“In what could end up becoming a vicious cycle of economic hurt, struggling homeowners who aren’t relocating for new jobs may stymie employers’ long-range growth.  So says a report from outplacement consultancy Challenger, Gray & Christmas Inc., which finds that about 7.5% of job hunters who found new positions ended up moving to a new home for work in the latter half of 2011.”

CNN Money - “First-time unemployment claims climb” (1-26-12)

“After plunging the week before, first-time claims for unemployment benefits ticked up last week.  The Labor Department reported Thursday that 377,000 people filed for initial unemployment benefits in the week ended Jan. 21, up 21,000 from a revised reading of 356,000 claims the week before.”

San Francisco Chronicle - “Economy gains as businesses spend more, fire less” (1-26-12)

“Businesses are growing more confident in the economy, investing in more equipment and laying off fewer workers.  Government figures on manufacturing and unemployment claims released Thursday raised hopes on the eve of a report on how much the economy grew in the October-December quarter.”

Bloomberg - “Commercial Property Sales Rose to More Than $220 Billion in U.S. Last Year” (1-26-12)

“Commercial property sales rose 57 percent to more than $220 billion U.S. last year, led by retail properties and garden apartments, Real Capital Analytics Inc. said in a report today.”

Housing Wire – “Senate clears $1.2 trillion debt ceiling raise” (1-26-12)

“The Senate voted 44-52 Thursday clearing President Obama to raise the debt ceiling by $1.2 trillion.  The ceiling will go to $16.4 trillion and, according to some estimates, may be breached again around the time of the November elections.”

Hard Money Loan Closed

Hesperia, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $40,000 on a 2 bedroom, 1 bathroom home appraised for $67,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.

The Norris Group posted a new event.  Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

Looking Back:

The MBA reported mortgage application volume fell 12.9% the week of January 21, 2011. According to the Commerce Department, new home sales dropped 7.6% year over year. $1.5 trillion in commercial debt was set to mature by 2014. A total of 58,020 loan modifications were canceled, said the Treasury Department.

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.

CNN Money reported the neighborhoods hit hardest by foreclosures are those in cul-de-sacs and tree lined streets as well as neighborhoods with modern homes.  Moody’s Investor Services reported a decrease in loan modifications.   Banks and other companies are beginning to move away from using FICO scores to determine a borrower’s credit worthiness and are instead moving toward using mathematical algorithms.

In The News:

Bloomberg – “Programmers Size Up Bank Borrowers With Algorithms Rather Than FICO Scores” (1-22-12)

“For more than 40 years, banks have counted on FICO scores to determine the credit worthiness of American consumers. Now a handful of entrepreneurs in California say it’s time for a smarter way to size up borrowers.  Los Angeles-based ZestCash Inc., along with San Francisco startups BillFloat Inc. and LendingClub Corp., are hiring computer programmers to write software that can better identify candidates for loans — including people with low credit scores. The companies, backed by venture money, also aim to provide lower fees and interest rates than banks.”

Housing Wire - “FHFA: Principal reduction would cost Fannie, Freddie $100 billion” (1-23-12)

“A massive principal reduction program applied to underwater loans held by Fannie Mae and Freddie Mac would cost the mortgage giants more than $100 billion, according to an analysis released by the Federal Housing Finance Agency Monday.”

DS News – “Loan Modifications Are on the Decline: Moody’s” (1-23-12)

“As robo-signing reviews reach completion, servicers are beginning to work through some of their foreclosure backlogs, according to a third-quarter report from Moody’s Investors Service.”

Realty Times - “Real Estate Outlook: Housing at Forefront of Concerns” (1-23-12)

“As the race for the 2012 Presidential Election gets rolling, a new survey from the National Association of Home Builders (NAHB) shows what is on voters’ minds.  Topping the list of concerns for voters is the importance of homeownership and the ease of obtaining it.”

Housing Wire - “Investors buying with cash pressure home prices” (1-23-12)

“Investors are gobbling up residential real estate with cash, pushing national home prices lower, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.”

FINS - “Wall Street Chiefs See Bonuses Lowered” (1-23-12)

“Wall Street’s pay crunch is squeezing some wallets harder than others.  J.P. Morgan Chase & Co. disclosed Friday that Chief Executive James Dimon received a 2011 stock bonus valued by the company at $17 million. That is the same as his 2010 award, despite a record profit last year at the New York financial-services company.”

Inman - “Open-house robbery puts focus on agent safety” (1-23-12)

“A recent gunpoint robbery of a homebuyer and a Realtor at an open house in Los Angeles County, Calif., compelled the Pacific West Association of Realtors (PWAR) to issue a warning to their members to be careful at open houses.”

Bloomberg – “BofA Targets Up to $3 Billion in Additional Cuts” (1-23-12)

“Bank of America Corp., the second-biggest U.S. lender by assets, may reduce annual costs by as much as an additional $3 billion in the next stage of Chief Executive Officer Brian T. Moynihan’s efficiency plan.”

Housing Wire - “Chase, Wells slash foreclosure timelines but REO lingers” (1-23-12)

“JPMorgan Chase (JPM: 37.66 +0.80%) and Wells Fargo (WFC: 30.92 +1.24%) cut their foreclosure timelines by as much as 100 days for some of the worst mortgages handled in the third quarter, according to a report from Moody’s Investors Service.”

DS News - “State AGs Reviewing Settlement Draft” (1-23-12)

“After HUD Secretary Shaun Donovan last week announced that the state attorneys general settlement with the nation’s largest banks is just weeks away – with a spokesperson for Iowa Attorney General Tom Miller’s office corroborating the claim – news today is a settlement draft is now in the hands of the state attorneys general for review.”

CNN Money - “Foreclosures: America’s hardest hit neighborhoods” (1-23-12)

“The housing collapse has dramatically changed the nation’s foreclosure landscape.  Neighborhoods boasting modern homes, cul-de-sacs and tree-lined streets in and around Western cities now dominate the list of the top 100 U.S. zip codes hit hardest by foreclosures and claim and comprise all of the top 10 spots, according to data generated for CNNMoney by RealtyTrac.”

Hard Money Loan Closed

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

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Investors Workshops and will be interviewing Shawn Watkins on January 25, 2012.

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.

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.

According to the most recent Mortgage Bankers Association Weekly Mortgage Applications Survey, mortgage applications increased 23.1% from last week.  NAHB reported builder confidence increased this month for the fourth month in a row, having increased 4 points to 25.  The FHFA is expected to be subpoenad regarding how principle reductions would effect Fannie Mae and Freddie Mac.

In The News:

Housing Wire – “Democrats push to subpoena FHFA over principal reductions” (1-18-12)

“Democrats on the House oversight committee are pushing to subpoena the Federal Housing Finance Agency to obtain an analysis looking at what effects principal reductions would have on Fannie Mae and Freddie Mac.”

NAHB - “Builder Confidence Rises Fourth Consecutive Time in January” (1-18-12)

“Builder confidence in the market for newly built, single-family homes continued to climb for a fourth consecutive month in January, rising four points to 25 on the NAHB/Wells Fargo Housing Market Index (HMI), released today. This is the highest level the index has attained since June of 2007.”

Bloomberg - “Fannie Fees Fail to Offset Record Low Lending Rates: Mortgage” (1-18-12)

“Ben S. Bernanke’s success in pushing mortgage rates to record lows is enabling Congress to fund last month’s payroll tax cut extension by siphoning money from Fannie Mae and Freddie Mac (FMCC), while homebuyers still benefit from the cheapest borrowing costs in history.”

Housing Wire - “Longer Forbearance Option Helps Temporarily Struggling Homeowners” (1-18-12)

“The BuildFax residential remodeling index in November rose for the 25th straight month from a year earlier, exceeding levels reached during the home-equity withdrawal boom of 2004 to 2006, analysts said.”

FINS - “Goldman Cut 2,400 Jobs, Plans More” (1-18-12)

“Even the most sought-after and prestigious investment bank in the business sometimes has to retool its strategy to stay profitable.  Goldman Sachs, which had originally planned to eliminate 1,000 positions in 2011, ended up shedding 2,400, according to its fourth quarter earnings statement.”

Mortgage Bankers Association - “Mortgage Applications Increase in Latest MBA Weekly Survey” (1-18-12)

“Mortgage applications increased 23.1 percent from one week earlier (last week’s results included an adjustment for New Years Day), according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 13, 2012.”

Housing Wire – “Home prices dip again in FNC index” (1-18-12)

“U.S. home prices fell 0.4% in November from October, the fourth-straight monthly decline according to FNC’s residential price index.”

DS News - “Clayton Holdins Closes Green River Capital Acquisition” (1-18-12)

“Clayton Holdings LLC announced Wednesday it has completed its acquisition of Green River Capital. No financial details were disclosed.”

Housing Wire - “Economic standstill stalls housing recovery: IHS report” (1-18-12)

“Wage stagnation and weak consumer confidence among young adults are two factors delaying a housing recovery, according to a new report from IHS Global Insight.”

CNN Money - “Foreclosure nightmares: 3 families fight for their homes” (1-18-12)

“With more than 200,000 households receiving foreclosure notices each month, there are bound to be a few mistakes. But for some unlucky homeowners, these blunders carry some serious consequences.”

Hard Money Loan Closed

Burbank, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $375,000 on a 4 bedroom, 2 bathroom home appraised for $617,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be speaking at the Women’s Council of Realtors today.

Bruce Norris of The Norris Group will be at the Investors Workshops and will be interviewing Shawn Watkins on January 25, 2012.

Looking Back:

19,528 new and resale houses and condos sold in Southern California the previous month, according to MDA DataQuick. LPS reported the average foreclosure in California and Nevada had been delinquent 461 days. December’s default rates for first and second mortgages were 2.93% and 1.74%.

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, the president and CEO of Fannie Mae, Michael Williams, is expected to resign.  According to the latest Zillow report, the values of homes in the United States decreased almost 5% year-over-year and are now at the level they were at in 2003.  HOPE NOW said a lot fewer loans were modified than last year, but on a positive note the number of loan modifications did increase in November from October.

In The News:

CNN Money - “Turning foreclosures into rentals” (1-9-12)

“Federal officials hope to launch a pilot program in early 2012 to convert government-owned foreclosures into rental properties.  The program, which was cited by Federal Reserve Chairman Ben Bernanke last week as one way to address the housing crisis, would sell foreclosed homes now owned by Fannie Mae (FNMA, Fortune 500) and Freddie Mac (FMCC, Fortune 500) to investors in bulk. The properties would then be converted into rentals.”

DS News – “Suspected Mortgage Fraud Continues to Rise, But at Slower Pace” (1-10-12)

“Suspicious activity reports (SARs) involving fraud in the financial industry rose from 1.32 million in fiscal 2010 to 1.45 million in fiscal 2011, according to the latest annual report from the Financial Crimes Enforcement Network (FinCEN), based in Vienna, Virginia.”

Housing Wire – “Zillow: Home values in November back at 2003 levels” (1-10-12)

“Home values in the United States in November remained flat with the prior month but declined 4.6% from last year, according to the latest real estate markets report from Zillow Inc. (Z: 24.19 +5.04%).”

Bloomberg - “Manhattan’s Office Leasing Reaches 11-Year High, Cushman & Wakefield Says” (1-10-12)

“Manhattan office leasing climbed 16 percent last year as tenants agreed to occupy the most space in more than a decade, Cushman & Wakefield Inc. said.”

Realty Times - “New California Law Protects Tenants’ Political Signs” (1-10-12)

“Any discrimination that prevents freedom of expression, based on whether or not you own property is a denial of rights that belong to all people.”  That’s what California State Senator Christine Kehoe said in advocating her bill, Senate Bill 337, during the recent session of the California Legislature.  The aim of SB 337 was to prevent landlords from forbidding their tenants to post political signs on the property that they rent.”

DS News – “Fannie Mae CEO to Resign” (1-10-12)

“Michael Williams has decided to step down from his position as CEO and president of Fannie Mae, the GSE announced today.”

NAHB - “Home Builders, Former NFL Players Strengthen Communities with Touchdown for Homes” (1-10-12)

“Up until now, one of the few things home builders had in common with football players was that builders constructed the houses where millions of families watched their favorite NFL teams compete each week. But with Touchdown for Homes, a charitable outreach program of the National Association of Home Builders and the NFL Players Association, home builders and former NFL players are teaming up around the country to build or renovate homes for children or families in need and veterans.”

Housing Wire - “2011 mortgage modifications fall short of previous year” (1-10-12)

“Mortgage servicers are on track to modify far fewer loans in 2011 than the previous year, according to the most recent data provided by the Hope Now alliance formed by these firms and others in the industry.”

DS News - “Loan Mods and Delinquencies Rise in November: HOPE NOW” (1-10-12)

“The number of mortgage modifications completed during the month of November rose 5 percent from October, bringing the year-to-date total to about 969,000, according to HOPE NOW, a voluntary private sector alliance of mortgage industry participants.”

CNN Money - “Federal Reserve pays $77 billion to Treasury” (1-10-12)

“Ben Bernanke is about to hand Timothy Geithner a very large check.  The Federal Reserve announced Tuesday that it plans to pay the Treasury $76.9 billion, the bulk of the Fed’s 2011 income after accounting for its own operating expenses.”

San Francisco Chronicle - “Encumberances And Nonpossessory Interests In Real Property” (1-10-12)

“Property  is a legal concept that grants and protects a person’s exclusive right to own,  possess, use and dispose of a thing. The term property does not suggest a  physical item, but describes a legal relationship of a person to a thing.”

Hard Money Loan Closed

Lancaster, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $50,000 on a 3 bedroom, 1 bathroom home appraised for $106,000.

California Real Estate Investor Events:

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

Bruce Norris will be speaking at the Apartment Owners Association-Discover Wealth Strategies for 2012 Los Angeles on January 12, 2012.

Looking Back:

According to the Federal Reserve Board, the amount of net income reserve banks took in was 34% higher than the previous year.  The Federal Reserve Board, in turn, made a profit of $78.4 the previous year, the largest profit it had made in several years.  The then recent ruling by the Massachusetts Supreme Court was not expected to change foreclosure practices drastically but rather opens the door to allow trustees to hold mortgages.

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.

U.S. bank credit is seeing its fastest growth in three years, leading the Federal Reserve to believe the economy will continue to expand.  Housing Wire reported that more security analysts prefer the large mortgage servicers despite their reported difficulties.  The Realty Times gave an overview of the current market, citing a decrease in unemployment but not much improvement in construction employment.

In The News:

Realty Times - “Real Estate Outlook: Improving Markets, Difficult Credit” (12-12-11)

“The unemployment rate is on the decline, at least it was for the month of November, according to the Bureau of Labor Statistics. It is now at 8.6 percent, as employment rose by 120,000.”

San Francisco Chronicle - “Bank Credit Highest Since Before Lehman as U.S. Growth Continues” (12-12-11)

“U.S. bank credit is growing at the fastest pace in three years, giving the Federal Reserve confidence in the economic expansion’s staying power.  Financial institutions increased commercial and industrial loans by an average  annual pace of almost 10 percent in the third quarter, the highest since the  comparable quarter in 2008, compared with a 1.7 percent decline in the past four  years, according to Fed data.”

Bloomberg - “Shelia Bair Said to Be Top Pick for Foreclosure Accord Monitor” (12-12-11)

“Ex-Federal Deposit Insurance Corp. Chairman Sheila Bair is a top candidate among state officials to ensure banks comply with any settlement of a nationwide foreclosure probe, a person familiar with the matter said.”

Housing Wire – “Detroit home sales up fifth straight month” (12-12-11)

“Home sales in metropolitan Detroit rose the fifth consecutive month from figures a year earlier and were up 5.6% in November, according to local multiple listing service Realcomp.”

The Wall Street Journal - “Homing in on Fannie, Freddie” (12-12-11)

“When Steve Linick first met senior managers at Fannie Mae and Freddie Mac early this year, he told them he would be no ordinary Washington regulator. His office has the power to make arrests, issue subpoenas and conduct searches, and some of his employees carry badges and guns.”

Hard Money Loan Closed

Lancaster, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $48,000 on a 4 bedroom, 2 bathroom home appraised for $80,000.

In The News:

Housing Wire – “Secondary market still favors large mortgage servicers” (12-12-11)

“The too-big-to-fail mortgage servicing model may be beset with difficulties, yet despite fewer mortgage modifications and slower foreclosure timelines, some securities analysts prefer the big guys because they can still move the cash.”

DS News - “USFN Names Director of Education and Marketing” (12-12-11)

“USFN-America’s Mortgage Banking Attorneys announced Friday that Alexis Haughton has joined the organization as director of education and marketing.”

Housing Wire - “Surging student loan debt threatens homeownership” (12-12-11)

“College graduates may not be able get onto the property ladder as soon as they’d like due to the costs associated with funding higher education.  According to Rick Palacios, a senior research analyst at John Burns Real
Estate Consulting, student loan debt now totals $865 billion, which is an average of $25,000 per student.”

California Real Estate Investor Events:

The Norris Group will be at the Real Estate Investor Rewind at SDCIA on December 13, 2011.

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.

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 the sale of new homes increased 5.7% last month, the highest they have been in 5 months.  According to the latest Mortgage Bankers Association survey, mortgage applications are up almost 5% from last week.  According to The Wall Street Journal, both the values and rent for apartments are on the rise.

In The News:

Housing Wire – “HARP plan keeps mortgage insurers in play” (10-26-11)

“The Mortgage Insurance Companies of America is supporting the revised Home Affordable Refinance Program as a step in the right direction since it aims to keep borrowers current while reducing default claims.”

DS News – “S&P/Experian: Default Rates Rise for First and Second Mortgages” (10-26-11)

“Default rates for both first and second mortgages increased during the month of September, according to the S&P/Experian Consumer Credit Default Indices.”

NAHB - “New-Home Sales Rise 5.7 Percent in September” (10-26-11)

“Sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 313,000 units in September, according to newly released data from the U.S. Commerce Department. This marks the fastest pace of new-home sales in the past five months.”

Mortgage Bankers Association - “Mortgage Applications Increase in Latest MBA Weekly Survey” (10-26-11)

“Mortgage applications increased 4.9 percent from one week earlier, which included the Columbus Day holiday, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week
ending October 21, 2011.”

Housing Wire - “Freddie Mac: Single-family delinquencies up slightly in September” (10-26-11)

“The rate of seriously delinquent mortgages held by Freddie Mac inched higher in September to 3.51% from 3.49% in August, the government-sponsored enterprise said Wednesday.”

Los Angeles Times - “U.S. recession fears fade as economy shows more strength” (10-26-11)

“The dreaded “double-dip” still is a no-show.  When the government on Thursday issues its first estimate of third-quarter U.S. gross domestic product, the report is expected to show a sharp acceleration in economic growth from the first half.  Real GDP grew at an annualized rate of 2.5% in the three months ended Sept. 30, according to the average estimate of economists in a Bloomberg News survey.”

Wall Street Journal - “Apartment Values Rise, as Do Rents” (10-26-11)

“Strong growth of rents and occupancy levels of rental apartments have pushed some building values to record levels as Americans shift away from home ownership.  While concerns about the economy are cooling the market for most other types of commercial real estate, apartment rents and occupancies continue to be boosted by demand from millions of people who are victims of foreclosure or are unwilling or unable to buy their own homes.”

DS News - “Freddie Mac’s Chief Executive to Resign” (10-26-11)

“Freddie Mac CEO Charles E. Haldeman Jr. has informed the GSE’s board of directors that he plans to step down “some time in the coming year,” according to a statement from Freddie’s regulator.”

Housing Wire – “Special servicers resolve $63.5 billion of distressed CMBS” (10-26-11)

“Special servicers resolved more than $63.5 billion in distressed commercial mortgage-backed securities from January 2010 to June 2011, Fitch Ratings said in a report Wednesday.”

Looking Back:

The MBA estimateed total originations in 2011 would be $400 billion less than the total for 2010. According to MDA DataQuick, 83,261 Notices of Default were recorded at California county recorder offices during the 3rd quarter of 2010. Lender Processing Services released a new valuation model that brought listing and pending sale data into the equation. The FHFA claimed U.S. house prices increased 0.4% in August 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.

A big story in the news is changes are being made to the refinancing program to help more homeowners who are underwater.  Campbell/Inside Mortgage Finance reported the time it takes to approve a mortgage could now take up to 60 days as opposed to 30 originally.  Realty Times reported an increase in builder confidence this month.  In select states, foreclosed homes currently owned by HUD can be purchased at only a $100 down payment.

In The News:

MSNBC.com - “US announcs help for underwater homeowners” (10-24-11)

“A leading housing regulator on Monday announced changes to a government refinancing program that could help up to one million homeowners of the estimated 11 million whose homes are worth less than their mortgage.”

Housing Wire – “Clogged application process extends mortgage approval timelines” (10-24-11)

“The time it takes to approve a mortgage in the United States grew from an average of 30 days to between 45 and 60 days over the past month, according to the latest survey from Campbell/Inside Mortgage Finance.”

Bloomberg - “CMBS Underwriting Standards ‘Worrisome’ as Sales Surged, Moody’s” (10-24-11)

“Lenders loosened terms on commercial mortgages originated to be packaged into bonds during the third quarter as sales of the securities surged, according to Moody’s Investors Service.”

Realty Times - “Real Estate Outlook: Builder Confidence Rises” (10-24-11)

“Builder confidence is up for the month of October thanks to renewed buyer interest in select markets. This is the largest one-month gain since April 2010 when renewed confidence from the home buyer tax credit was in full swing.”

DS News - “HUD Offers REO Homes for $100 Down in Select States” (10-24-11)

“HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers.  In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home.”

San Francisco Chronicle - “Fed Wants to Ensure U.S. Housing Affordability, Dudley Says” (10-24-11)

“Federal Reserve Bank of New York President William C. Dudley said the central  bank wants to keep mortgage interest rates from rising too much and may do more  to hold down borrowing costs.”

O.C. Register – “Homebuying rises in 40 ZIPs!  Yours?” (10-24-11)

“For the 22 business days ending October 6 — DataQuick’s freshest stats — the Orange County real estate market had homebuying patterns showing: 24 of O.C.’s 83 ZIP codes with gains in their respective median selling price. Overall, buyers’ prices were -3.8% vs. a year ago.”

Housing Wire - “Stephens analyst expects LPS to top 3Q earnings estimates” (10-24-11)

“Lender Processing Services (LPS: 16.55 +7.47%) should easily beat third-quarter earnings forecasts after benefiting from improved foreclosure and mortgage metrics, according to one analyst at Stephens Inc.”

Los Angeles Times - “California housing agency forcing foreclosures” (10-24-11)

“A state agency that provides low-interest mortgages is foreclosing on a small number of clients even though they are making their monthly payments, a state Senate watchdog group reported.  The California Housing Finance Agency is foreclosing on homes because their financially strapped owners temporarily rent them out and move into cheaper rental properties, the Senate Office of Oversight and Outcomes said Monday.”

Inman - “Home Affordable Refinancing Program revamped to boost refis” (10-24-11)

“In an attempt to boost participation in the Obama administration’s  mortgage refinance program, Fannie Mae and Freddie Mac will release  lenders who sign off on a refinanced loan from some legal liabilities  associated with the original loan.”

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 the Orange County Register, home prices in California dropped 6.2% year-over-year in August from last year.  However, for the whole United States home prices dropped .4% month-over-month from July to August, the first drop in prices CoreLogic has reported in four months.  Rates on a 30-year mortgage dipped below 4%, according to Bloomberg.

In The News:

Housing Wire - “3Q house prices up but Clear Capital predicts 2012 dip” (10-6-11)

“Home prices rose nationally 3.5% in the third quarter over the previous quarter, according to the latest home data index from Clear Capital.”

Bloomberg - “30-Year Mortgage Rates in U.S. Fall Below 4%” (10-6-11)

“Mortgage rates in the U.S. fell, sending longer-term borrowing costs below 4 percent for the first time on record, as stricter credit standards and the slowing economy hold back a housing rebound.”

O.C. Register - “Calif. home prices off 6.2%, 7th worst drop” (10-6-11)

“California home prices fell 6.2 percent in the year ending in August, 7th biggest drop among the states, according to new data from CoreLogic.”

NAHB - “Number of Improving Housing Markets Nearly Doubles in October” (10-6-11)

“The second edition of the National Association of Home Builders/ First American Improving Markets Index (IMI), released today, shows 23 individual housing markets now qualifying as “improving” under the new gauge’s parameters. This is nearly double the 12 housing markets that made the list last month.”

DS News - “Congress Scrutinizes Federal Housing Programs” (10-6-11)

“Several Federal housing programs came under attack during a hearing Thursday morning titled “The Obama Administration’s Response to the Housing Crisis’.”

Realty Times - “Remodeling Double-dip Offers Opportunity for Homeowners” (10-6-11)

“Remodeling is suffering a double dip in sales, not unlike the double dip in home prices, but just as it’s a good time to buy an affordable home, it’s a good time to budget for and negotiate a home improvement deal.”

Housing Wire – “Homeownership rate at lowest level in 70 years” (10-6-11)

“The U.S. homeownership rate in 2010 fell to the lowest level in 70 years, dropping to 65.1%, down from 66.2% in 2000, according to data from the Census Bureau.”

DS News – “CoreLogic Records First Drop in Home Prices in Four Months” (10-6-11)

“Home prices in the U.S. slipped 0.4 percent between July and August, CoreLogic reported Thursday. It marks the first time in four months the company’s index has recorded a decline.”

Looking Back:

One year ago, the National League of Cities expected city property-tax revenues to decrease 1.8% in 2010. The IMF believed a double-dip in real estate was possible. A new program from HUD allowed delinquent borrowers, who were unemployed or suffering from a severe medical condition, to receive up to $50,000 at a 0% interest rate. The monthly ADP National Employment Report showed the private sector lost 39,000 jobs in September 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.

Bloomberg reported that the number of homes being built is at a three-month low, lower than what was predicted in August.  However, NAHB reported permits for new homes increased for both single-family and multifamily housing units.  Median prices for homes in California are at their highest for 2011.  The Senate held a hearing to discuss possible solutions for dealing with foreclosures.

In The News:

DS News - “Senate Holds Hearing on Foreclosure Glut” (9-20-11)

“At a Senate hearing titled, “New Ideas to Address the Glut of Foreclosed Properties,” witnesses discussed several possible options for dealing with foreclosed properties and spurring recovery in the housing market.”

Housing Wire - “10 million more mortgages set to default” (9-20-11)

“Roughly 10.4 million mortgages, or one in five outstanding home loans in the U.S., will likely default if Congress refuses to implement new policy changes to prevent and sell more foreclosures, according to analyst Laurie Goodman from
Amherst Securities Group.”

Bloomberg - “U.S. Housing Starts Fall to Three-Month Low” (9-20-11)

“Builders began work on fewer U.S. homes than forecast in August, showing the industry remains flat on its back even as mortgage rates fall to record lows.”

O.C. Register - “Realtors forecast ‘tepid’ housing market in 2012″ (9-20-11)

“The California Association of Realtors forecast a “tepid economic recovery” in 2012, predicting that both home prices and sales will go up slightly without any great improvement in the market.”

NAHB - “NAHB: NAHB Offers New Course on Universal Design/Build” (9-20-11)

“The National Association of Home Builders (NAHB) is premiering a new course on Universal Design/Build at the Remodeling Show in Chicago. With its focus on integrating universal design principles into all types of residential construction projects, the two-day training brings cutting-edge design solutions to building and design professionals.”

Housing Wire - “MBA supports large-scale REO disposition” (9-20-11)

“Large-scale disposition of real estate-owned properties is needed to stabilize housing, according to the Mortgage Bankers Association.”

DS News - “California’s Median Home Price Hits 2011 High” (9-20-11)

“The state of California is soaking in the last rays of the calendar summer and cashing in on the last days of the traditional homebuying season, with sales soaring in August and the median home price touching on its highest reading of the year.”

NAHB - “NAHB: Balanced Approach Needed to Dispose of REO Properties, NAHB Tells Congress” (9-20-11)

“The National Association of Home Builders (NAHB) today urged the Administration and Congress to take a balanced approach in disposing of the large inventory of real estate owned (REO) properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration to avoid further disruptions to pricing and markets and to limit further losses to the two government sponsored enterprises and the FHA.”

Rismedia - “Household Debt Drops for 12 Straight Quarter” (9-20-11)

“Household debt declined by a seasonally adjusted annual rate of 0.6%, dragged lower by a 2.4% decline in mortgage debt as consumers took out fewer mortgages, paid off or had debts forgiven, the Federal Reserve reported in its voluminous flow-of-funds report.  Consumer credit outside mortgages rose by 3.4%.”

NAHB - “NAHB: Housing Starts Decline, Permits Rise in August” (9-20-11)

“Nationwide housing starts declined 5.0 percent to a seasonally adjusted annual rate of 571,000 units in August, according to figures released by the U.S. Commerce Department today.”

Looking Back:

The NAHB’s monthly survey showed builder confidence remained at the previous month’s low level. Trepp claimed that commercial real estate loans were the cause of 5 of the 6 bank failures that occurred over the weekend of September 18 and 19, 2010. FHA insured mortgages accounted for 37% of all originations in 2009, according to the Federal Financial Institutions Examination Council. In a recent survey, nearly 50% of economists claimed that economic growth in 2011 would be below the Fed’s estimated 2.5% annual pace. GMAC denied the claim that it instituted a foreclosure moratorium in 23 states.

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.

Sources:

Americans Harbor Glum Outlook for Housing and the Economy
State sees first bump in property assessments in three years
Obama Pledges to Refinance Millions of Mortgages at Today’s Rates
CBO casts doubt over Fed refinancing plan
Financial Firms ‘Disappointed’ FHFA Chose Lawsuits Over Negotiations
AG Settlement Will Not Release Banks from Securitization Liability

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.  This week, the Flood Insurance Reform Act of 2011 was passed this week by the Senate Banking Committee in order to make flood insurance more affordable to people in high-risk living areas.  Mortgage rates are still at an all-time low, according to Realty Times.  JP Morgan stated that they expect to decrease another 6-7% before hitting their all time low as early as 2012.

In The News:

DS News - “Fed’s Field Contacts Report on Weak Spots in Housing” (9-9-11)

“The Federal Reserve has published a new rendition of its market-gauging Beige Book, which indicates economic activity across the country is expanding at only a ‘modest pace’.”

Housing Wire - “Senate Banking Committee passes flood insurance legislation” (9-9-11)

“The Mortgage Bankers Association applauded the Senate Banking committee for passing the Flood Insurance Reform Act of 2011 this week.”

Bloomberg - “Banks May Fight Banks as Mortgage Securities Investors Try for Class Suits” (9-9-11)

“Banks including JPMorgan Chase & Co. (JPM)and Bank of America Corp. (BAC) may pay more to resolve claims over their alleged roles in the collapse of a $2.3 trillion mortgage-backed securities market if sophisticated investors are allowed to sue as a group along with less savvy ones.”

NAHB - “Statement from NAHB Chairman Bob Nielsen on President Obama’s Address to the Nation” (9-9-11)

“Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev., today issued the following statement regarding President Obama’s address to the nation last night.”

Inman - “New index tracks metros with growth in real estate prices, permits and jobs” (9-9-11)

“After enduring what has seemed like an endless string of dismal numbers reports, the housing industry is about to get some good news. Tuesday, the National Association of Home Builders (NAHB) launched the NAHB/First American Improving Markets Index (IMI), dedicated entirely to tracking metropolitan areas that have consistently shown signs of improvement.”

Realty Times - “Mortgage Rates Attain New All-Time Record Lows Again” (9-9-11)

“Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates, fixed and adjustable, hitting all-time record lows amid market and employment concerns and economic uncertainty.

Bloomberg - “Bernanke Says Tighter Budgets May Hurt Recovery as Fed Considers Stimulus” (9-9-11)

“Federal Reserve Chairman Ben S. Bernanke warned that quick deficit reduction may hurt the recovery and said the central bank this month will consider steps to bolster growth and spur hiring.”

Housing Wire - “JPMorgan expects further drop in home prices” (9-9-11)

“Home prices could dip another 6% to 7%, before hitting rock bottom in early 2012, according to analysts at JPMorgan Chase (JPM: 32.08 -4.27%).”

Looking Back:

Mortgage rates increased to 4.35 percent after weeks of record-breaking lows. Jobless claims fell 5.6% the previous week, according to the Labor Department. Callahan & Associates reported credit unions originated $31.4 billion in mortgages during the first 2 quarters of 2010. Statistics from Real Capital Analytics showed hotel purchases increased 136% during the first two quarters 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 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.