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The Norris Group Real Estate News Roundup 5/10/11

Tuesday, May 10th, 2011

Today’s News Synopsis:

The NAR stated that home sales rose in 49 states during the first quarter. A study from the NAHB shows 72.8% of all U.S. homes sold last year were affordable for families earning the national median income. The Financial Crimes Enforcement Network said reports of mortgage fraud reached a record high. Trulia found that third-party syndicators of listings data which does not come from an MLS has an error rate of 21.3 percent for either a listing’s price or status.

In The News:

NAR - “Existing-Home Sales Rise in Most States in First Quarter; Metro Area Prices Mixed” (5-10-11)

“Existing-home sales continued to recover in the first quarter with gains recorded in 49 states and the District of Columbia, while 22 percent of the available metropolitan areas saw prices rise from a year ago, according to the latest survey by the National Association of Realtors®.”

NAHB - “New Data from NAHB Breaks Down Housing Affordability by Race/Ethinicity” (5-10-11)

“The HOI for all races/ethnic groups combined was 72.8 in 2010, meaning that 72.8 percent of all homes sold in the U.S. last year were affordable to families earning the national median income of $64,400.”

Wall Street Journal – “Reports of Mortgage Fraud Reach Record Level” (5-10-11)

“The Financial Crimes Enforcement Network, a Treasury agency, reported 70,472 ‘suspicious activity reports’ related to suspected mortgage fraud, up from 67,507 in 2009, or a 5% increase.”

Sacramento Bee – “Sacramento-area home prices continue their slide” (5-10-11)

“For the eighth straight month home prices dropped when compared to the same month a year prior. The March 2011 median sale price was down 7.5 percent nationwide in March when compared to March 2010. The drop was even more pronounced in the four-county region of Sacramento, Yolo, El Dorado and Placer counties where the median in March was down 10.42 percent year over year.”

Orange County Register – “A good time to buy an investment property?” (5-10-11)

“Before you answer the question as to whether now is a good time for you to purchase income property a few questions: Are you purchasing investment property for equity growth or for income? How long do you think you will hold onto to the property? Are you thinking of buying a single family residence or units?”

Bloomberg - “States Said to Alter Mortgage Accord as Banks, Republicans Balk” (5-10-11)

“U.S. states probing foreclosure practices revised a nationwide settlement proposal after banks and eight Republican attorneys general objected to mortgage loan principal cuts, two people familiar with the talks said. The provision of the original 27-page term-sheet submitted by the states and Justice Department would encourage defaults, the banks and eight attorneys general said”

Inman - “Trulia: Higher error rate in non-MLS sources of real estate listings data” (5-10-11)

“Trulia’s analysis found that third-party syndicators of listings data that did not come from an MLS had an error rate of 21.3 percent for either a listing’s price or status. Real estate professionals submit data to these sources but often don’t return to update their listings, Trulia said.”

Looking Back:

One year ago, Fannie Mae asked for $8.4 billion in government aid. Serious delinquencies among US Alt-A residential mortgage-backed securities (RMBS) declined in April. First American CoreLogic reported that underwater mortgages and borrowers with less than 5% home equity accounted for 28% of all residential properties. Statistics from Zillow showed more than a fifth of U.S. mortgage holders owed more than their homes were worth in the first quarter 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.

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222-TNG Radio – Lance Martin 4-23-11

Thursday, April 21st, 2011

Lance-Martin

Lance Martin

Owner of Coldwell Banker Pioneer Real Estate


(Full Bio)

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This week Bruce is joined by Lance Martin. Lance has been in the real estate business for 24 years as broker/owner of Coldwell Banker Pioneer Real Estate which serves the Inland Empire. Lance is an expert in residential REO foreclosure sales.

Martin’s business is family owned. In the late 80s, Lance’s family moved from Long Beach to Moreno Valley. Martin and his father opened their business together in 1988. They dealt primarily with single family homes, but they also worked with REOs. Property management was the staple of their business for a long time. His parents retired 10 years ago, but he continued operating the business. The business is independently owned and operated, but it is franchised through Coldwell Banker.

Martin got his real estate license when he was 19, and 1987 was his first year in the business. In those years, real estate sold easily. The market progressively deteriorated after that time. He was fortunate to be connected with REO clients such as Fannie Mae in 1993. To this day, he has leveraged Fannie and Freddie for business. Martin did nothing other than REO until the year 2000.

Property management kept Martin’s business performing when real estate sales were not doing well. Mot traditional real estate companies shy away from property management, because it is a lot of work, and landlords and tenants are difficult.

When Martin looks for an agent, he tries to find someone who is disciplined. Martin has interviewed agents who had great sales skills, but they did not have the discipline to come to work frequently enough. He has also met people who did not have great skills, but they were hard working and they followed up with their clients.

Martin believes a lot of information that has been released from the CAR and NAR has been false. Nevertheless, he has been a big supporter of the local board of realtors. He served as president of that organization in the 90s. There is a lot of education available in that organization. Also, it helps you get recognized. Banks and clients like to know that they are working with someone involved in the industry. He had the opportunity to learn about the politics and legislation involved in the real estate business.

For the last 10 years, Martin has been attending 4 to 6 conferences per year. Over the last two years, he has gone to these conferences to learn how to support his business. Unfortunately, the conferences he has attended during the past two years have been nearly useless. There is not much new content being released. It is hard for economists to explain the current state of the real estate market and where it is going. In Martin’s opinion, we do not have a true real estate market. He believes we have an artificial market created by a large amount of government intervention, and he is not comfortable with it. Martin has been trying to figure out what the government and the banks trying to do to control inventory and the market as a whole. Nobody seems to have the answer to those questions, and because of that, the value of the conferences Martin attends has diminished. He may stop going altogether.

When this happens, you start losing the credibility of the people you need to keep. Bruce was on a panel at one of the conferences Martin attended. After some time, he noticed that the panelist was not asking questions that the audience needed answers to. Bruce then took over the question asking, and he even asked the panelist questions that the audience wanted answers to. At the end of the conference, Bruce was asked to leave from three security guards. Martin supported Bruce’s decision to take control of the questioning that day.

Martin considers Bruce to be worth listening to, and that was one of the big reasons he chose to attend the REOMAC conference which Bruce was taken out of. Martin also has a high level of respect for Chris Thornberg.

Bruce believes anyone will have an audience if they are willing to present the unvarnished picture. You should not have a business plan with phony information.

Some of the forecasts made by NAR over the last few years have been embarrassing. If Martin had relied on NAR’s forecasts, he would be out of business. Bruce feels frustrated for people who have lost credibility because they chose not to support NAR’s information.

In the 90s, people thought the downturn was a once in a lifetime opportunity. The inventory level was easy to predict based on notices of default and notices of sale. Since 2006, the inventory has been difficult to predict, and it has been huge. The number of REOs we currently have dwarfs the number from the 90s. In this market, if the numbers say that 100 properties should come to the market, then there will probably be less than 10. The reality is that all of those properties will have to come to the market eventually.

One of the chapters Bruce wishes he had not included in his book on the California downturn was “How California Prices Decline in a Downturn”. He methodically looked at all of California’s downturns in the past, and tried to estimate how California’s down turn would function based on that information. Those estimations were completely false.

There were sellers with equity in the 90s. In Martin’s current market area, 90% or more of the properties are distressed, and are in the REO or short sale market.

According to a survey from the NAR, only 33% of the people who have recently sold their home are interested in buying right away. This means only 165,000 buyers would be created if you performed 500,000 sales. Martin thinks consumers understand that we are in an unusually distressed market.

Martin’s website is www.pioneerrealestate.com

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

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The Norris Group Real Estate News Roundup 4/20/11

Wednesday, April 20th, 2011

Today’s News Synopsis:

Mortgage application volume rose 5.3%, according to the MBA. The NAR said existing home sales increased 3.7%. Economists from CSU Fullerton believe O.C. home prices will rise by less than 5% this year.

In The News:

Bloomberg - “Meyer Interview About U.S. Housing Market” (4-20-11)

“Michelle Meyer, a senior economist at Bank of America Merrill Lynch, talks about the outlook for the U.S. housing market. Sales of U.S. previously owned homes rose in March as a mounting supply of properties in or near foreclosure lured investors.”

Mortgage Bankers Association – “Press Release – Weekly Application Survey” (4-20-11)

“mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 5.9 percent compared with the previous week. The Refinance Index increased 2.7 percent from the previous week.”

NAR - “Existing-Home Sales Rise in March” (4-20-11)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7 percent to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3 percent below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.”

Orange County Register – “CSUF: O.C. home prices to rise by less than 5%” (4-20-11)

“Business School economists at California State University, Fullerton, are sticking to their earlier forecast that Orange County home prices won’t gain much ground this year.”

DSNews - “Moody’s: Commercial Real Estate Prices Just 0.8% Above Cycle Low” (4-20-11)

“commercial real estate (CRE) prices as measured by the Moody’s/REAL Commercial Property Price Index (CPPI) fell 3.3 percent at the national level in February. The index is down 4.9 percent from 12 months earlier and only 0.8 percent above its post-peak low set in August 2010.”

Looking Back:

One year ago, 81,054 Notices of Default were recorded at county recorder offices during the January-to-March period in California. Marcus & Millichap Real Estate Investment Services claimed that the gap between monthly rents and mortgage payments was at its lowest level in almost 20 years. Cushman & Wakefield estimated the commercial real estate market would take the longest to recover. HAMP completed 230,000 permanent modifications over 12 months.

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

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The Norris Group Real Estate News Roundup 4/13/11

Wednesday, April 13th, 2011

Today’s News Synopsis:

MDA DataQuick reports 19,412 houses and condos sold in Southern California last month. Freddie Mac believes home sales will rise 5% in 2011. President Barack Obama revealed the White House’s deficit reduction plan, which aims to reduce the nation’s deficit by $4 trillion in 12 years. Home Depot sales show Americans are doing more home improvement.

In The News:

MDA DataQuick – “Southland Home Sales Still Slow, Prices Edge Down” (4-13-11)

“A total of 19,412 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in March. That was up 35.1 percent from 14,369 in February, and down 5.2 percent from 20,476 in March 2010, according to DataQuick of San Diego.”

NAR - “Realtors® Applaud Bill to Speed Lender Response to Short Sales” (4-13-11)

“A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House yesterday and strongly supported by the National Association of Realtors®, would impose a deadline of 45 days on lenders to respond to short sale requests.”

Los Angeles Times – “Americans doing more home improvement projects” (4-13-11)

“Home Depot Inc., the largest home improvement retailer, in February reported its first annual sales increase since 2006, before the housing market crashed. The home improvement business is stabilizing despite the continued weakness of the housing market, Home Depot Chief Executive Frank Blake said at the time.”

Bloomberg - “Banks Must Pay Victims of Botched Foreclosures, Regulators Say” (4-13-11)

“The 14 largest U.S. mortgage servicers must pay back homeowners for losses from foreclosures or loans that were mishandled in the wake of the housing collapse, the first of a set of sanctions regulators are seeking against the companies. ”

Bloomberg - “JPMorgan Says Foreclosure Accord With Federal Reserve, OCC May Come Today” (4-13-11)

“The bank took a $1.1 billion charge and may add as many as 3,000 employees to comply with the consent agreement, Chief Executive Officer Jamie Dimon and Chief Financial Officer Doug Braunstein told reporters on a conference call today after the bank reported a 67 percent increase in net income. The accord involves the Office of the Comptroller of the Currency and the Federal Reserve, the bankers said.”

Housing Wire – “Freddie Mac expects strong spring home buying” (4-13-11)

“Freddie Mac said home sales will increase 5% in 2011 compared to 2010 — a projected 4.9 million home sales. The agency estimates that number will rise 12.2% to 5.5 million homes sales in 2012.”

Housing Wire – “Obama deficit reduction plan would impact tax itemization of home purchases” (4-13-11)

“President Barack Obama revealed the White House’s deficit reduction plan Wednesday, saying his administration aims to reduce the nation’s deficit by $4 trillion over the next 12 years by using a mix of higher taxes on the wealthiest Americans, reductions in defense spending, tax code changes and health care savings.”

Housing Wire – “Fitch: Increasing interest rates bad for investors, home affordability” (4-13-11)

“Elevated rates would expose trading-oriented investors to heightened price volatility, particularly those that are highly leveraged, funded through repo markets or mark-to-market their holdings, according to the report. In a rising rate scenario, U.S. banks’ current MBS holdings of roughly $1.3 trillion would face either mark-to-market losses or, if held on a long-term basis, lower net interest income.”

Orange County Register – “Forecast: Irvine rents to rise in ’11″ (4-13-11)

“Irvine experienced positive net absorption in 2010 of 2,930 units, more than doubling the total net absorption from 2009. This increase in demand helped boost occupancy 2.9 percentage points to 95.5 percent, the third-highest among Orange County submarkets. Average monthly rental rates increased 1.8 percent to $1,699 per month. Same-store rents, however, declined 0.1 percent.”

Orange County Register – “Most volatile U.S. home market? Not O.C.!” (4-13-11)

“Orange County’s best appreciation rate was 21.2 percent in Jan. 2005. CoreLogic’s national index best year-over-year mark? Plus 17.6 percent in March 2005. Biggest loss among the 45 towns since ’05? Miami, off 34.9 percent year-over-year in Feb. 2009.”

Looking Back:

One year ago, MDA DataQuick reported 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties sold in March. Schwarzenegger signed a bill allowing taxpayers to be exempt from paying for forgiven mortgage debt. In 2008 and 2009, the income needed to buy a median-priced home decreased in 93 percent of U.S. markets. According to IAS, national house prices fell 0.6% in February 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.

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The Norris Group Real Estate News Roundup 4/8/11

Friday, April 8th, 2011

Sources:
Southern California rents are likely to remain flat, study says
32 million people struggling to pay mortgage
Home prices double-dip in West but flatten nationally: Clear Capital
Home prices fall for seventh month in February
U.S.: World’s 7th worst housing market
Possible Federal Government Shutdown
Federal shutdown would hit California hard
Analysts say FHA shutdown possible without budget consensus
Tax rule that would’ve hurt small business is repealed
Home Builders Applaud Congressional Passage of 1099 Repeal
The 2011 Community Preference Survey
Mortgage aid offered to those who cashed out equity

Today’s News Synopsis:

The government has yet to agree on a budget. If they cannot agree on a budget before Monday, many jobs will be put on hold, and many government sponsored programs will temporarily stop functioning. CMBS delinquencies fell to 8.74% in March, according to Fitch. The due date on taxes for property owners has been extended for 1 day.

In The News:

NAR - “What a Government Shutdown Means for REALTORS®” (4-5-11)

“If legislation providing for funding is not signed into law to extend funding after April 8, the federal government could shut down. This means many, but not all, government programs, including some that impact federal housing and mortgage programs, could grind to a halt as early as April 9, 2011.”

Los Angeles Times – “Home lenders shed workers as mortgage rates climb” (4-5-11)

“the nation’s No. 1 mortgage lender, has handed pink slips to about 1,900 workers who had processed loans generated both by Wells’ mortgage unit and by independent brokers, a spokesman said Thursday. About 230 of the positions were in California, said Jason D. Menke, a spokesman for Wells Fargo Home Mortgage in Des Moines, Iowa. Nearly 100 cuts were made in the San Diego area, 59 in Irvine and fewer numbers in San Bernardino, Rancho Cordova and Walnut Creek.”

Housing Wire – “The claim: Short sales closed in 30 days” (4-5-11)

“But if a mortgage servicer says his or her company can complete a short sale in 30 days, are they being overly ambitious? Eric Friedman, president of PREO, doesn’t think so. His 10-month-old company boasts the ability to accomplish this task. Through PREO.com, Friedman says he lines up banks, investors, servicers, real estate agents and buyers in a seamless process to transact a short sale in as little time as 30 days.”

Housing Wire – “Fisher: The time for banks to support the economy is now” (4-5-11)

“Fisher called for the immediate end for the Federal Reserve’s quantitative easing program and a pullout of all federal support for America’s financial institutions. He made his comments while speaking at the 2011 Society of American Business Editors and Writers conference at Southern Methodist University in Dallas Friday.”

Orange County Register – “SEC: O.C. activist lied to investors” (4-5-11)

“The Securities and Exchange Commission filed civil fraud charges Thursday against high-profile Orange County money manager and political activist Charles ‘Chip’ Hanlon, alleging that Hanlon ‘vastly overstated’ the size of his Delta Global Advisors financial advisory and the financial health of the business.”

Orange County Register – “Property owners get extra day to pay tax” (4-5-11)

“April 10 is the traditional due date for the money, but because this year that day falls on a Sunday, the deadline has moved to Monday!”

Housing Wire – “Fitch finds CMBS delinquencies dip for first time in four months” (4-5-11)

“The overall delinquency rate stood at 8.74% in March, a decrease of 2 basis points from the previous month and the first drop since October. Fitch analysts said despite the deceleration of delinquencies, which fell across four of the five main property types last month, the upswing projecting for the rest of the year will likely take the rate to a peak around 10%.”

Housing Wire – “FHA settles with mortgage lender for improperly refinancing loans” (4-5-11)

“The Federal Housing Administration’s Mortgagee Review Board settled with a Massachusetts mortgage lender that allegedly failed to fully verify whether borrowers could sustain mortgage payments prior to refinancing their loans. As part of the settlement, First American Mortgage Trust of Brookline, Mass., agreed to pay $72,500 to reimburse FHA for past insurance claims and to indemnify FHA’s insurance fund for any claims to be paid on five mortgages should they default within the next 60 months.”

Orange County Register – “How fed shutdown could affect homebuyers” (4-5-11)

“Virtually every mortgage taken now requires an IRS Form 4506 to be processed on the borrower. Lenders use this form to ensure there are no expense deductions, self-employment, rental income, etc that was not claimed on the mortgage application. If the government shuts down these forms cannot be processed and final loan approvals will be delayed.”

Looking Back:

One year ago, John Husing estimated that 10,500 new jobs would be created in Riverside during 2010. First American CoreLogic reported distressed sales accounted for 29 percent of the U.S. market. According to the Clear Capital Home Price Index, US home prices dipped 3.9% in the first quarter of 2010. The rate for 30-year FRM loans was at 5.21%.

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

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The Norris Group Real Estate News Roundup 4/4/11

Monday, April 4th, 2011

Today’s News Synopsis:

Ed Haldeman said less than 4% of Freddie Mac’s single family loans are delinquent. The government dismissed two counts of wire fraud in the case against the former CEO of Taylor, Bean and Whitaker. Treasury Secretary Geithner warned that severe economic hardship could impact the United States when the nation reaches its debt limit.

In The News:

NAR - “NAR Study Finds Americans Prefer Smart Growth Communities” (4-4-11)

“Americans favor walkable, mixed-use neighborhoods, with 56 percent of respondents preferring smart growth neighborhoods over neighborhoods that require more driving between home, work and recreation.”

Daily News – “Greg Wilcox: Realtors’ website focuses on short sales” (4-3-11)

“SHORT sales are complicated transactions and account for a big part of the real-estate market. Now the California Association of Realtors hopes to bring some clarity to the process. The Los Angeles-based trade association has launched shortsalescalifornia.org, which will provide resources, news and tips about homes that are valued at less than what is owed.”

Housing Wire – “Less than 4% of single-family loans are delinquent: Freddie CEO” (4-4-11)

“Freddie Mac Chief Executive Officer Ed Haldeman said less than 4% of the government-sponsored enterprise’s single-family home loans are at least three payments behind or heading into foreclosure.”

Housing Wire – “U.S. dismisses two wire fraud counts to speed up Taylor, Bean and Whitaker trial” (4-4-11)

“U.S. government prosecutors dismissed two counts of wire fraud in the case against Lee Farkas, the former CEO of failed mortgage lender Taylor, Bean and Whitaker.”

Housing Wire – “House Committee to vote on Republican bills for GSE wind down” (4-4-11)

“One bill in particular introduced by Rep. Scott Garrett (R-N.J.) hits a hot button issue on whether or not Fannie and Freddie should be exempt from the risk-retention standards of a qualified residential mortgage. According to Garrett’s bill, H.R. 1223 or the GSE Credit Risk Equitable Treatment Act, GSE securities would not be exempt from the risk-retention requirements of Dodd-Frank.”

Housing Wire – “Geithner warns of economic hardship unless U.S. debt ceiling is raised” (4-4-11)

“Treasury Secretary Tim Geithner sent a letter to U.S. Sen. Harry Reid Monday warning the lawmaker that severe economic hardship could impact the United States when the nation reaches its debt limit on May 16.”

Orange County Register – “Demand for O.C. homes jumps 22%” (4-4-11)

“Homes listed for under a million bucks have a market time of 2.85 months vs. 8.24 months for homes listed for more than $1 million.”

Orange County Register – “O.C. rent hikes run half U.S. increases” (4-4-11)

“MPF found Orange County’s effective rents for new tenants — the asking rates minus concessions — as of March rising 1.5 percent in a year — vs. 3.3 percent nationwide. From the fourth quarter, Orange County effective rent was up 0.8 percent vs. 1.1 percent nationwide.”

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

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The Norris Group Real Estate News Roundup 3/30/11

Wednesday, March 30th, 2011

Today’s News Synopsis:

The NAR said vacation home sales accounted for 10% of all transactions in 2010. A new proposal may force lenders to allow short sales for delinquent homeowners. The House voted 252 to 170 end funding for HAMP. CoreLogic estimates there are 1.8 million homes in the shadow inventory.

In The News:

NAR - “Vacation- and Investment-Home Shares Hold Even in 2010″ (3-30-11)

“vacation-home sales accounted for 10 percent of transactions last year while the portion of investment sales was 17 percent, both unchanged from 2009.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (3-30-11)

“Mortgage applications decreased 7.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending March 25, 2011.”

Los Angeles Times – “Proposed settlement would force banks to allow short sales for delinquent homeowners” (3-30-11)

“Major banks may be forced to let severely delinquent homeowners sell their houses for less than the loan amounts owed as part of a broad settlement of federal and state investigations into botched foreclosure paperwork, according to government officials involved in the negotiations.”

CNN - “House votes to kill Obama mortgage plan” (3-30-11)

“The House voted 252 to 170 to stop any new funding for the Home Affordable Modification Program (HAMP). Eleven Democrats joined Republicans to defund the program.”

Housing Wire – “Job gains barely beat estimates on the long road back to pre-recession levels” (3-30-11)

“While the economy gained 201,000 private sector jobs last month, those additions are not enough to set the pace for a rapid economic or housing recovery, analysts say.”

Bloomberg - “Lenders Could Get Exemptions Under New Risk-Retention Rule” (3-30-11)

“U.S. regulators proposed exempting banks and bond issuers who meet high underwriting standards from rules requiring them to keep a stake in loans they securitize, according to a draft proposal.”

Bloomberg - “U.S. Home ‘Shadow Inventory’ Totals Nine Months of Supply, CoreLogic Says” (3-30-11)

“About 1.8 million homes that are delinquent or in foreclosure loom as additional supply for the struggling U.S. housing market, according to CoreLogic Inc.”

Housing Wire – “CBO drops estimate of TARP cost to $19 billion” (3-30-11)

“The Troubled Asset Relief Program will end up costing taxpayers $19 billion, according to the latest estimate Wednesday from the Congressional Budget Office.”

Housing Wire – “‘Too big to fail’ legacy lives on: Rosner” (3-30-11)

“government intervention in 2008 forced bank mergers and acquisitions, leaving the financial market in the control of the nation’s largest financial firms.”

Looking Back:

One year ago, national home prices decreased by 0.7 percent from the previous year. Fannie Mae and Freddie Mac estimated that mortgage rates would rise less than a quarter of a percentage point in the next three months. Interest rates on conventional 30-year FRMs increased to 5.13% in February 2010. The US Treasury Department announced it would allocate $600 million to HFA for foreclosure prevention programs in California, Florida, Arizona, Michigan and Nevada.

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

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The Norris Group Real Estate News Roundup 3/28/11

Monday, March 28th, 2011

Today’s News Synopsis:

Pending home sales increased by 2.1%, according to the NAR. Interthinx claims California’s fraud risk decreased last year. A cash for keys program was recently proposed to Congress members, but has been strongly ridiculed. California had the largest gain in construction jobs in the nation during February.

In The News:

NAR - “February Pending Home Sales Rise” (3-28-11)

“The Pending Home Sales Index,* a forward-looking indicator, rose 2.1 percent to 90.8, based on contracts signed in February, from 88.9 in January. The index is 8.2 percent below 98.9 recorded in February 2010.”

DSNews - “Fraud Criminals Migrate to Hardest Hit Areas” (3-28-11)

“California’s overall risk index value actually decreased to 180 points, from 222 in 2009. According to California-based Interthinx, this can be explained by a migration of fraudulent criminals to more vulnerable areas, such as Nevada, which saw its overall risk index value increase more than 30 points last years.”

Housing Wire – “Monday Morning Cup of Coffee” (3-28-11)

“The Federal Deposit Insurance Corp. is expected to unveil suggested guidelines for the new qualified residential mortgage rule on Tuesday.”

Housing Wire – “Electronic mortages: There is a way, but not enough will, tech panel finds” (3-28-11)

“Moving mortgage documents onto entirely electronic platforms provides numerous cost and operating efficiencies. It also doesn’t help that the industry is slow to adopt the necessary technology, experts say.”

Housing Wire – “‘Dreamed up’ cash for keys proposal draws heavy criticism” (3-28-11)

“Sources are downplaying discussions over a mandatory cash-for-keys program that would pay a reported $21,000 to a delinquent borrower, with one prominent Republican quickly shooting down the idea.”

Bloomberg - “Fed Should Weigh Curtailing $600 Billion in Bond Purchases, Bullard Says” (3-28-11)

“St. Louis Federal Reserve Bank President James Bullard said policy makers should review whether to curtail a plan to buy $600 billion in Treasury securities, noting that the U.S. recovery may not need that much stimulus.”

Housing Wire – “ALTA reports increases in FY, Q4 2010 title insurance premiums” (3-28-11)

“According to ALTA’s preliminary 2010 year-end market share analysis, the title insurance industry generated $9.61 billion in title insurance premiums in 2010 — up 0.2% from 2009.”

Orange County Register – “Calif. tops in new construction jobs” (3-28-11)

“California had the largest construction gain in the nation in February — adding 15,500 jobs, or 2.7 percent, from January, says an Associated General Contractors of America analysis of state employment data from the U.S. Labor 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.

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The Norris Group Real Estate News Roundup 3/21/11

Monday, March 21st, 2011

Today’s News Synopsis:

Existing home sales dropped 9.6%, according to the NAR. A San Joaquin County investor pleaded guilty to rigging foreclosure auctions, and is now facing a federal prison sentence and $1 million in fines. LPS claims the current mortgage delinquency rate is 8.8%.

In The News:

NAR - “February Existing-Home Sales Decline following Sustained Gains” (3-21-11)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 9.6 percent to a seasonally adjusted annual rate of 4.88 million in February from an upwardly revised 5.40 million in January, and are 2.8 percent below the 5.02 million pace in February 2010.”

Housing Wire – “California pending home sales spike in February” (3-21-11)

“The California Association of Realtors’ Pending Home Sales Index rose 20.6% in February to 112.1 from 93 in January. The index uses 2008 housing market activity as a baseline because it represents a more normal level of purchases and sales. An index reading of 100 corresponds with activity in 2008.”

Recordnet.com – “Guilty plea in home auction rigging” (3-21-11)

“A San Joaquin County investor pleaded guilty Friday in federal court to charges he illegally rigged bids with others at home foreclosure auctions in Stockton, the U.S. Attorney’s Office in Sacramento reported. Gregory L. Jackson is the sixth defendant so far to plead guilty in the federal probe. He faces a federal prison sentence and $1 million in fines under terms of the negotiated plea deal.”

Orange County Register – “‘Normal’ new-home market is 3-5 years off” (3-19-21)

“We decided to add Southern California (especially the O.C. market) into our business plan since we believe this market has bottomed. In today’s home building market, there is an imbalance between used and new homes in Orange County as a limited amount of new homes have been built over the last five years.”

Orange County Register – “Demand for O.C. homes at 7-month high” (3-21-11)

“Demand, the number of new pending sales over the past month, increased by 225 in just two weeks and now totals 2,982. At the beginning of the year, demand was at 1,856 pending sales. Since then, it has increased by 61%. Last year at this time there were 288 additional pending sales, propped up by the $8,000 first time homebuyer tax credit.”

Housing Wire – “Mortgage delinquency rate drops 18.4% annually: LPS” (3-21-11)

“Out of the 40 million loans evaluated by LPS last month, 8.8% qualified as delinquent (30 days or more overdue). That delinquency rate is down 1.2% from January and 18.4% from February 2010.”

Housing Wire – “Stress tests suggest economy may slide back into crisis: IRA” (3-21-11)

“Recent stress tests conducted by the Federal Reserve suggest the banking industry and economy ‘may be sliding back into crisis’ because of deflation in the housing sector, according to a new report from Institutional Risk Analytics.”

Housing Wire – “Moody’s expects temporary GSE exemption from mortgage risk rules” (3-21-11)

“Analysts at Moody’s Investors Service said Monday regulators may exempt Fannie Mae and Freddie Mac from upcoming mortgage risk retention rules – at least temporarily.”

Housing Wire – “Distressed property sales decline on foreclosure issues facing servicers” (3-21-11)

“Overall, investors stepped up their homebuying game last month even as distressed property sales fell, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The report shows the HousingPulse Distressed Property Index — a barometer of distressed home sales — fell to 47.3% in February from 49.6% in January.”

Bloomberg – “Treasury to Sell Mortgage-Backed Holdings at Up to $10 Billion Per Month” (3-21-11)

“The U.S. Treasury Department plans to wind down its $142 billion portfolio of mortgage bonds guaranteed by Fannie Mae and Freddie Mac by selling as much as $10 billion per month.”

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

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The Norris Group Real Estate News Roundup 3/15/11

Tuesday, March 15th, 2011

Today’s News Synopsis:

14,369 new and resale houses and condos sold in Southern California last month, according to MDA DataQuick. A survey shows the majority of large fund managers do not expect interest rates to increase in the near term. ForeclosureRadar said default notices in California decreased 29.6% year over year. A study from NAHB economists shows that a family earning $80,000 per year who buys a $200,000 house will receive $41,138 in tax benefits over the entire term of home ownership.

In The News:

MDA DataQuick – “Southland February Home Sales At 3-year Low; Investor Interest High” (3-15-11)

“Last month 14,369 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 0.6 percent from 14,458 in January, and down 6.4 percent from 15,359 in February 2010, according to DataQuick Information Systems of San Diego.”

NAR - “Tax Time Less Taxing for Home Owners” (3-15-11)

“A number of tax deductions and credits are still available for home owners; these include deductions – with specific limits – for mortgage interest and capital gains on home sales, and credits for certain energy-efficient home improvements. Even with these benefits, home owners pay 80-90 percent of all U.S. federal income taxes.”

Housing Wire – “Housing needs mortgage servicing standards: OCC” (3-15-11)

“National mortgage servicing standards will be an essential part of the new housing market, acting comptroller of the currency John Walsh said Tuesday. But reaching a consensus on how to devise those standards is a struggle that will take more work, he conceded, while speaking to the American Bankers Association.”

Housing Wire - “Oil shocks hedge against U.S. interest rate hike” (3-15-11)

“Oil price shocks greatly reduce the probability of higher interest rates in the near term, the latest Bank of America Merrill Lynch Survey of Fund Managers said Tuesday.”

NAHB - “Builder Confidence Edges Up One Point in March” (3-15-11)

“After four consecutive months hovering at the same low level, builder confidence in the market for newly built, single-family homes improved by a single point in March, rising to 17 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest level the HMI has reached since May 2010, when the survey period corresponded with the final days of the federal home buyer tax credit program.”

Housing Wire – “Foreclosure activity slows in February: ForeclosureRadar” (3-15-11)

“Notice of default filings in California fell 29.6% on a year-over-year basis. The Golden State also experienced a 24.5% drop in sales back to the bank and a 20.3% decline in properties purchased by third parties.”

NAHB - “Tax Time Can Mean Big Savings for Homeowners” (3-15-11)

“A study from NAHB economists, ‘The Tax Benefits of Homeownership,’ details sample savings for a variety of income levels and homeownership situations. In one example, a household with an $80,000 annual income that buys a home with a $200,000 mortgage will save on average $1,765 in the first year—and realize a total benefit of $41,138 over the expected period of homeownership.”

NAHB - “Builder Confidence Edges Up One Point in March” (3-15-11)

“After four consecutive months hovering at the same low level, builder confidence in the market for newly built, single-family homes improved by a single point in March, rising to 17 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest level the HMI has reached since May 2010, when the survey period corresponded with the final days of the federal home buyer tax credit program.”

Housing Wire – “More than one-third of CMBS loans make scheduled balloon payments in February” (3-15-11)

“Trepp, a provider of commercial mortgage-backed securities data, said 38.4% of CMBS loans made their scheduled balloon payments in February, compared to 38.7% a month earlier.”

Housing Wire – “GSEs inflated subprime balloon before it popped: Cato Institute” (3-15-11)

“the researcher paints the government-sponsored enterprises as culprits in the subprime debacle by citing data showing Fannie and Freddie acquired 40% of all newly issued private-label subprime securities issued during the housing boom years of 2003 and 2004.”

Bloomberg - “Lehman Seeks Partner on Real Estate Development Projects” (3-15-11)

“Lehman Brothers Holdings Inc. (LEHMQ) sent requests to at least six homebuilders and developers seeking partners for 75 real estate projects in 19 states, according to executives at three companies who reviewed the solicitations.”

Looking Back:

One year ago, builder confidence decreased by over 10 percent within half of a month. Sacramento home sales decreased by 26 percent from 2009. According to LPS, the U.S. mortgage delinquency rate was at 10.25%. California contributed $2.6trn to the total $5.7trn of US housing wealth lost since the peak of 2006.

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

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