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The Norris Group Real Estate News Roundup 7/18/11

Monday, July 18th, 2011

Today’s News Synopsis:

According to NAHB index, confidence for newly-built single-family homes increases two points.  DS News reported former Ohio attorney genereal has been nominated by Obama as the new head of the Consumer Financial Protection Bureau.  Republicans John Campbell and Gary Ackerman have introduced a new bill that will increase the loan limits on mortgages backed by Fannie Mae and Freddie Mac.

In The News:

NAHB - “Builder Confidence Gains Two Points in July” (7-18-11)

“Builder confidence in the market for newly built, single-family homes rose two points to 15 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for July, released today. The gain largely offsets a three-point dip recorded in June, and marks the ninth time out of the past 10 months in which the index has held within the same three-point range.”

Inman - “NAR hits second CIVIX milestone “ (7-18-11)

“The National Association of Realtors has met a second milestone in a goal of raising $7.5 million in licensing fees to obtain blanket immunity for multiple listing services and Realtor associations from legal claims by a company that holds several patents on location-based Internet search techniques.”

DS News – “Obama Nominates Former Ohio Attorney General to Head CFPB” (7-18-11)

“President Obama on Sunday announced his pick to lead the new Consumer Financial Protection Bureau (CFPB) – Richard Cordray, former attorney general for the state of Ohio.”

Housing Wire - “Freddie Mac says housing sector unlikely to see double-dip” (7-18-11)

“Despite uncertainty about the debt ceiling and an unemployment rate that remains stubbornly higher than 9%, Freddie Mac said the housing market is unlikely to experience a double dip.”

Realty Times – “Real Estate Outlook: Housing Market Struggles” (7-18-11)

“While it might not be at the pace that economists would like, the economy is recovering. Federal Reserve Chairman, Ben Bernanke, reported last week to the Committee on Financial Services, that “the pace of the expansion so far this year has been modest.”

Bloomberg - “BofA Needs $50 Billion Cushion as Mortgage Expenses Swell” (7-18-11)

“Bank of America Corp. (BAC) may have to build its capital cushion by $50 billion and renege again on Chief Executive Officer Brian T. Moynihan’s pledge to raise the firm’s dividend as mortgage losses drain funds.”

Housing Wire - “Freddie Mac offering $1 billion of multifamily bonds” (7-18-11)

“Freddie Mac plans to offer $1 billion of pass-through certificates this week backed by 90 recently originated multifamily mortgages.”

DS News - “Top Lenders’ Early Earnings Point to Continuing Mortgage Losses” (7-18-11)

“JPMorgan Chase kicked off the banking sector’s second-quarter earnings season with a $5.4 billion profit. It was followed by Citigroup’s announcement late last week that it pulled in net income of $3.3 billion during the April-June timeframe.”

Realtor Magazine - “Bill Calls for Extending Jumbo Loan Limits” (7-18-11)

“A bill introduced late last week calls for extending the current conforming loan limits on government-backed mortgages at Fannie Mae and Freddie Mac for another two years.  The bill, introduced by Rep. John Campbell, R-Calif., and Rep. Gary Ackerman, D-N.Y., would allow the government-sponsored enterprises and the Federal Housing Administration to guarantee or buy mortgages worth up to $729,750 in many neighborhoods.”

Bloomberg - “Builders Push ‘Green’ Homes to Stand Out in Foreclosure-Filled U.S. Market” (7-18-11)

“In the 20 years Ron Betenbough’s company has been building homes in west Texas, he’s always been willing to compete on price. Now, in a market crowded with cheap properties, he’s also touting environmentally friendly construction and energy-saving features.”

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 8/19/10

Thursday, August 19th, 2010

Today’s News Synopsis:

Energy efficiency loans hit the skids as many banks see the risk outweighing the rewards. A White House-created commission look at possibly increasing the age for retirement benefits with the backing of AARP. California rates as one of the country’s hottest real estate markets for price increases while a PMI Mortgage Insurance Co. report lists 7 California areas (both northern and southern) that will most likely witness price declines in the next two years.

In The News:

C.A.R. - “Bank of America Permanent HAMP Modifications Increase 5.9% in July” (8-19-10)

“The percentage of households that could afford to buy an entry-level home in California stood at 64 percent in the second quarter of 2010, compared with 67 percent for the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).”

Los Angeles Times - “Loan program for green home upgrades stalls” (8-19-10)

“Funds dry up, and many projects are left in limbo, after regulators and lenders raise alarms over terms of the Property Assessed Clean Energy program.”  This is better known as PACE in most green circles.

Wall Street Jounral -“Cuts in Social Security Weighed by Fiscal Panel” (8-19-10)

“A White House-created commission is considering proposals to raise the retirement age and make other changes to shore up the finances of Social Security, prompting key players to prepare for a major battle over the program’s future. The commission is looking into ways to address the country’s long-term fiscal problems, but even before it settles on proposals many liberals are vowing to block cuts in retirement benefits. Some key players appear open to a deal, however, including the White House and the powerful senior group AARP.”

Housing Wire - “MBA Convinces Florida to Drop Certain Mortgage Underwriter Requirements” (8-19-10)

“In the first part of 2010, the Florida Office of Financial Regulation (OFR) passed a mandate that mortgage processors and underwriters must become licensed as loan originators. According to an email sent today from the Mortgage Bankers Association (MBA), the trade group successfully convinced the OFR to reverse this requirement.”

Wall Street Jounral - “Mortgage Delinquency Runs Slightly Higher in Dems’ Districts” (8-19-10)

“On average, districts represented by Democrats have an average serious delinquency rate of 9.9%, while the Republicans, which represent 77 fewer districts, have an average rate of 8.7%.”

OC Register - “Calif. ranks as third-hottest home market” (8-19-10)

“California slipped from first place to third in home price gains in CoreLogic’s latest home-price report.”

Inman - “Top 20 metros at risk of price declines” (8-19-10)

“The risk of price declines in the next two years declined during the first quarter in 75 percent of 384 markets tracked by PMI Mortgage Insurance Co., including 40 of the 50 nation’s most populous metro areas.” 7 of of 10 for California isn’t that bad. Right?

Wall Street Journal – Economists React: Jobless Claims Cast Doubt on Recovery (8-19-10)

Housing Wire - “John Burns: GSE Renting Options Will Increase Demand and Limit Supply” (8-19-10)

“The government should create an apartment real estate investment trust (REIT) to rent out foreclosed properties — a method that would avoid flooding the housing market with foreclosed properties, a real estate consultant said as President Obama’s “Future of Housing Finance Conference” kicked off Tuesday.”

Mortgage Orb - “Realogy CEO Takes Part in U.S. Government Conference on the Future of Housing Finance” (8-19-10)

“In assuming an “extremely adverse scenario,” it is conceivable that Bank of America, Wells Fargo, JPMorgan Chase and Citi could be on the hook for as much as $180 billion in loan repurchase requests from Fannie Mae and Freddie Mac, Fitch Ratings says.”

Mortgage Daily News- “Fed Report Shows Decrease in Household Debt and Delinquencies” (8-19-10)

“The study distinguishes debt across the following types of accounts: mortgage accounts (including home equity installment loans (HEL)), home equity revolving accounts (HELOCs), auto loans, credit cards, student loans, and other loan accounts including consumer finance, retail stores and gas station accounts. As of June 30, American consumers owed $11.7 trillion, down 1.5 percent from the previous quarter and 6.5 percent below the peak level for consumer debt ($12.5 trillion) at the end of the third quarter of 2008. This downward trend has now continued for seven quarters.”

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.

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The Norris Group Real Estate News Roundup 8/12/10

Thursday, August 12th, 2010

Today’s News Synopsis:

Freddie Mac’s claims the average rate for 30-year fixed loans this week fell to 4.44 percent. RealtyTrac reports that national foreclosures increased 3.6% from last month. Initial unemployment insurance claims increased this week by 2,000 to 484,000, according to the Department of Labor. Foreclosure Radar announced notices of default filings in California slipped 4.8% from June, and notices of trustee sale fell 18.9%.

In The News:

NAHB - “Active Adult Home Builder Activity, Confidence Drop” (8-12-10)

“Builder confidence in the mature-housing market retreated during this year’s second quarter, according to data from the National Association of Home Builders’ 55+ Housing Market Index (55+ HMI) – a quarterly survey of the association’s builder members engaged in the production of mature-market housing. This past quarter’s index values dropped for all areas surveyed, compared to the previous year’s second quarter.”

Associated Press – “Mortgage rates hit low of 4.44 pct.” (8-12-10)

“Mortgage buyer Freddie Mac says the average rate for 30-year fixed loans this week was 4.44 percent, down from 4.49 percent last week. That’s the lowest since Freddie Mac began tracking rates in 1971.”

Inman - “FHA premium changes pushed to Oct. 4″ (8-12-10)

“FHA Commissioner David Stevens announced last week that upfront premiums for FHA mortgage insurance would be rolled back from 2.25 percent to 1 percent on Sept. 7, while annual premiums would nearly double. FHA had raised upfront premiums from 1.75 percent to 2.25 percent in April, to cope with rising losses on FHA-guaranteed loans. The Obama administration promised to reduce upfront premiums if Congress gave it the authority to raise annual premiums beyond their statutory limit of 0.55 percent.”

CNN - “Foreclosures rise in July” (8-12-10)

“The latest foreclosure numbers carried a mixed message: They’re up 3.6% from the month before but down 9.7% from 12 months earlier. In July there were more than 325,000 foreclosure filings — including notices of default, auctions notices and bank repossessions. That is the 17th month in a row total filings exceeded 300,000, said RealtyTrac’s CEO, James Saccacio.”

Sacramento Bee – “42,000 of California’s jobless will get help with mortgages” (8-12-10)

“More than 42,000 laid-off California homeowners are about to get a break. Starting Nov. 1, the government will help them make mortgage payments while they look for another job. Wednesday, the U.S. Treasury Department added $476.2 million to a $64 million state program that will pay jobless homeowners up to $1,500 a month.”

Housing Wire – “Weekly Jobless Claims Swell to 484,000″ (8-12-10)

“The number of initial unemployment insurance claims grew by 2,000 to 484,000 in the week ending August 7, swelling more than expected after last week’s initial figure was revised upward. The four-week moving average rose to 473,500, from the previous week’s revised average of 459,250, according to new data today from the US Department of Labor (DOL).”

Housing Wire - “California Foreclosure Activity Remains Mixed in July” (8-12-10)

“California mortgage defaults and foreclosure activity remained mixed in July, according to ForeclosureRadar, which tracks filings across the state. Foreclosure filings and cancellations dropped in July after rising in June while foreclosure sales rose after dropping last month. Notices of default filings slipped 4.8% from June and 47% from the same month last year. Notices of trustee sale fell 18.9% from June and 30.5% from July 2009″

Housing Wire – “Freddie Mac Economist Finds Growing Investor Preference for Hard Cash” (8-12-10)

“In Freddie Mac’s report, ‘Where Have All the Originations Gone?’ released Wednesday, the government sponsored entity (GSE) said that 25% of 2010 existing home sales are all-cash transactions. This proves to be a growing trend in home buying as the percentage of cash transactions was between 5% and 10% just a few years ago.”

Wall Street Journal - “Foreclosed On—By the U.S.” (8-12-10)

“The Federal Reserve Bank of New York is facing the prospect of foreclosing on a number of properties in the coming months, from homes to commercial buildings, a result of a souring mortgage portfolio it took over when it helped bail out Bear Stearns in 2008.”

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 8/11/10

Wednesday, August 11th, 2010

Today’s News Synopsis:

The MBA’s weekly survey shows mortgage application volume increased by 0.6 percent. The Obama will provide the Treasury Department and HUD with $3 billion for aiding homeowners. The NAR reports that most U.S. metro areas experienced a decrease in home prices during the second quarter, and distressed homes accounted for 32 percent of second quarter sales.

In The News:

Mortgage Bankers Association – “Mortgage Applications Essentially Unchanged Despite Lowest Rates in MBA Weekly Survey” (8-11-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 6, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 0.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 0.4 percent compared with the previous week.”

Associated Press - “Obama administration to provide $3B in housing aid” (8-11-10)

“The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs. Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.”

NAR - “Broad Stabilization in Second Quarter Metro Area Home Prices with Strong Sales” (8-11-10)

“In the second quarter, 100 out of 155 metropolitan statistical areas1 (MSAs) had higher median existing single-family home prices in comparison with the second quarter of 2009, including 14 with double-digit increases; two were unchanged and 53 metros showed price declines. In the first quarter of this year 91 areas had higher prices, while only 26 MSAs experienced annual price gains in second quarter of 2009. The national median existing single-family price was $176,900 in the second quarter, up 1.5 percent from $174,200 in the same period of 2009. The median is where half sold for more and half sold for less. Distressed homes accounted for 32 percent of second quarter sales, down from 36 percent a year ago.”

Sign on San Diego – “Price reductions on San Diego homes increase” (8-11-10)

“As of Aug. 1, 23 percent of all the homes for sale in the City of San Diego had seen a price reduction, says a report by Trulia.com, a real estate website. That’s compared to July where 20 percent of the homes for sale in San Diego had experienced a price cut. The average price reduction was 8 percent. On a national level, Trulia estimated that 25 percent of all home listings have had at least one price reduction. The average size of the cut was 10 percent of the original list price, chopping an estimated $30.1 billion in value.”

Housing Wire – “Foreclosures Down 5% in First Half of 2010: Foreclosure Listings Nationwide” (8-11-10)

“Foreclosure Listings Nationwide said second-quarter foreclosures rose 1% from the year ago and declined 4% from the prior quarter. More than 1.6m properties began the foreclosure process during the six months ending June 30, representing a nearly 7% decline from a year ago.”

Housing Wire – “Fitch Sees $100bn in Special Servicing CMBS Loans by Year End” (8-11-10)

“Commercial real estate loans that require special servicing continue to climb with the total volume projected to reach $100bn by the end of 2010. These loans are used as collateral in commercial backed mortgage securitizations (CMBS).”

Housing Wire – “FHA Postpones Premium Changes until October” (8-11-10)

“Last week, Federal Housing Administration (FHA) commissioner David Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. Based on industry feedback to the announcement, the FHA postponed the premium fee changes on all new case numbers for one month, and will now implement them on Oct. 4, 2010.”

Housing Wire – “Most Borrowers Choose Fixed-Rate Mortgages for Refinancing, Freddie Says” (8-11-10)

“Borrowers who are refinancing their homes are taking advantage of the lowest fixed-mortgage rates in the past 50 years, according to Freddie Mac’s quarterly Product Transition Report today. The report indicates 95% of refinance loans completed in Q210 were processed with a fixed-rate mortgage (FRM).”

Bloomberg - “Fed Reverses Exit Plans, Sets $2 Trillion Floor for Holdings” (8-11-10)

“Officials directed the New York Fed’s trading desk to reinvest what economists estimate will be $15 billion to $20 billion a month in maturing agency and mortgage-backed securities back into U.S. Treasuries. The purchases will help keep Treasury yields and mortgage costs low and prevent the level of monetary stimulus from shrinking further.”

Realty Times – “Top 10 Things You Need to Know About Self-Directed IRAs” (8-11-10)

“IRAs Can Purchase Almost Anything. A common misconception about IRAs is that purchasing anything other than CDs, stocks, mutual funds or annuities is illegal in an IRA. This is false. The only prohibitions contained in the Internal Revenue Code for IRAs are investments in life insurance contracts and in ‘collectibles.’ Since there are so few restrictions contained in the law, almost anything else which can be documented can be purchased in your IRA. A ‘self-directed’ IRA allows any investment not expressly prohibited by law. Common investment choices include real estate, both domestic and foreign, options, secured and unsecured notes, including first and second liens against real estate, C corporation stock, limited liability companies, limited partnerships, trusts and a whole lot more.”

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 7/23/10

Friday, July 23rd, 2010

Sources:
http://money.cnn.com/2010/07/20/real_estate/housing_starts/
http://www.inman.com/news/2010/07/20/fha-raising-fico-floor-reducing-seller-concessions
http://www.housingwire.com/2010/07/19/june-home-sales-prices-up-from-2009-remax-survey
http://www.realtor.org/press_room/news_releases/2010/07/ehs_june_above
http://www.mbaa.org/NewsandMedia/PressCenter/73447.htm
http://www.dqnews.com/Articles/2010/News/California/CA-Foreclosures/RRFor100721.aspx
http://www.car.org/newsstand/newsreleases/junereport/

Today’s News Synopsis:

The HVCC will be eliminated in less than 90 days. A national survey from Citi shows that 62 percent of Americans believe the economy has not bottomed. Mortgage purchase and issuance at Freddie Mac totaled $179 billion during the first half of 2010.

In The News:

Housing Wire – “Obama Signs Bill Eliminating HVCC” (7-23-10)

“When President Barack Obama signed the Dodd-Frank Act this week to reform the financial markets, the Home Valuation Code of Conduct (HVCC) was officially set for elimination in 90 days.”

Housing Wire – “Citi Survey: Most Americans Don’t See Economic Recovery Any Time Soon” (7-23-10)

“According to a nationwide survey released Thursday by Citi and Hart Research Associates, nearly two-thirds of Americans (62%) believe the economy still has yet to hit bottom, with a lack of jobs and troubles managing debt largely responsible for the gloomy outlook.”

Housing Wire – “Fed Off to Slow Start Unwinding Billions in Mortgage Assets” (7-23-10)

“The Federal Reserve, which responded to the financial crisis with unprecedented monetary policy, is off to a slow start in settling mortgage assets it bought from government-sponsored enterprises, according to Federal Reserve Bank of Cleveland (FRBC) vice presidents John Carlson and Joseph Haubrich and research assistant John Linder.”

Housing Wire – “If HAMP Is a Band-Aid, HAFA’s an Exit Strategy” (7-23-10)

“I bought my home in 2006 for $500,000 and put $50,000 down, and I got a loan for $450,000 at 7% for 30 years. I could afford the payment, and I paid on time. Fast forward to 2009. I am not making the bonuses I was in 2006, and my wife’s hours have been cut so our family income is not what it was. It seems that the HAMP program was made for me. Now comes the real question. Do I want to stay in the house? I owe essentially $450,000 on my home. From 2006 through 2009 the value of my home decreased from $500,000 to $240,000. I now owe $450,000 on an asset that is worth $240,000. Even if I were offered a mod to 3% and the term extended to 40 years do I really want continue to pay on a loan when the asset is worth about half of what I owe?”

California Builder - “Five Common Mistakes When Remodeling Your Kitchen” (7-23-10)

“Make sure you have the specs in the contractors’ hands prior to cabinets being ordered. This will result in a better fit for the appliance into the cabinets — especially wall ovens, built-in microwaves, cook tops and large fridges.”

Orange County Register - “Home sales up in only 42 of 83 ZIPs” (7-23-10)

“Only 42 of 83 O.C. ZIPs had year-over-year sales gains in the period. 5 of 83 O.C. ZIPs has sales gains of 100% or more in the period. Overall, countywide sales were +9% vs. a year ago.”

Housing Wire – “Freddie’s Mortgage Purchase and Issuance Reaches $179bn in H110″ (7-23-10)

“Mortgage purchase and issuance at Freddie Mac rose to $30.9bn in June, from $25.1bn in May, bringing the year-to-date total to $179bn for the first half of 2010 (HI10), according to a monthly volume summary (download here). Freddie’s total mortgage portfolio decreased at an annualized rate of 0.9% in June. Total guaranteed Participation Certificates (PCs) and structured securities issued fell at an annualized rate of 0.6%.”

Looking Back:

One year ago, the average 30-year mortgage rate increased to 5.2 percent. The National Association of Realtors said that home sales rose annual rate of 4.89 million. The FBI documented nearly 29,000 mortgage fraud SARs in the first two months of 2009.

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The Norris Group Real Estate News Roundup 6/23/10

Wednesday, June 23rd, 2010

Today’s News Synopsis:

According to the Commerce Department, new home sales decreased by 33 percent in May. The MBA’s weekly survey shows mortgage application decreased by 5.9 percent last week. The Franchise Tax Board announced 80% of the credits for first-time home buyers program in California has been applied for. Borrowers who strategically default will be banned from obtaining new mortgages backed by Fannie Mae for seven years from the date of foreclosure.

In The News:

Associated Press – “New-home sales plunge 33 pct with tax credits gone” (6-23-10)

“Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.”

Mortgage Bankers Association - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (6-23-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 18, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 5.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 6.0 percent compared with the previous week.”

Orange County Register – “Calif.’s first-time buyer tax credit almost gone” (6-23-10)

“Less than eight weeks after California’s home-buyer tax credits became available, nearly 80% of the credits for first-time home buyers has been applied for, the state Franchise Tax Board has announced. Meanwhile, home buyers have applied for more than $36 million of a separate $100 million tax credit program for new home sales, the state reported.”

Los Angeles Times – “California, 4 other states to get more housing aid” (6-23-10)

“The Obama administration has approved five state-designed plans to help homeowners as part of a $1.5 billion effort to assist areas slammed by the U.S. housing bust. Treasury Department officials, who spoke on condition of anonymity because the decisions had not yet been made public, said plans for Arizona, California, Florida, Michigan and Nevada had received approval. The states estimate that the plans are projected to help up to 93,000 homeowners. That’s a small part of the administration’s main existing $75 billion mortgage assistance program, which is widely viewed as a disappointment.”

Bloomberg - “Fannie Mae Will Deny New Loans to Homeowners Who Walk Away” (6-23-10)

“Borrowers who have the means to make mortgage payments and don’t work with lenders to restructure loans will be banned from obtaining new mortgages backed by Fannie Mae for seven years from the date of foreclosure, the company said today in a statement. Washington-based Fannie Mae, along with McLean, Virginia-based rival Freddie Mac, own or guarantee more than half of the $10.7 trillion U.S. mortgage market.”

Bloomberg - “IRS Audits Block 10% of First-Time Homebuyer Credits” (6-23-10)

“About $1.22 billion of the $12.6 billion in tax credits claimed through February were denied or frozen after audits, the report from the Treasury Department’s Inspector General for Tax Administration said. The IRS estimated that about 1.8 million taxpayers sought the benefit, which totals as much as $8,000, from the inception in April 2008.”

Realty Times – “Buyers Should Be Careful About Credit Use Prior to Closing” (6-23-10)

“Buyers and their agents need to be aware that it is a very bad idea for buyers to increase their credit balances or to open new lines of credit shortly before they close escrow on their new home. More specifically, they should avoid such activity during the period of time between loan application and closing. This is because policies under Fannie Mae’s Loan Quality Initiative, effective June 1, 2010, requires lenders to ‘refresh’ a borrower’s credit report just prior to closing.”

Looking Back:

One year ago, existing home sales increased by 2.4 percent in one month. The MBA forecasted $2.034 trillion of originations of mortgages for one- to four-family homes in 2009. U.S. home prices fell 6.8 percent in April from 2008.

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 4/30/10

Friday, April 30th, 2010

Today’s News Synopsis:

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

In The News:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Looking Back:

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

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The Norris Group Real Estate News Roundup 4/23/10

Friday, April 23rd, 2010

Today’s News Synopsis:

Existing home sales rose 6.8 percent in March. Mortgage origination volumes decreased 46 percent in 2009. US house prices dropped 0.2% from January to February. Fannie Mae and Freddie Mac are creating the Loan Modification Scam Prevention Network which will work to educate borrowers and take in complaints.

In The News:

NAR - “Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions” (4-22-10)

“Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 6.8 percent to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1 percent above the 4.61 million-unit level in March 2009.”

Mortgage Bankers Association – “Mortgage Bankers’ Commercial/Multifamily Originations Down 46 Percent in 2009″ (4-22-10)

“Commercial and multifamily mortgage origination volumes decreased 46 percent in 2009 among repeat reporters, with mortgage bankers reporting $82.3 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Association’s 2009 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.”

Los Angeles Times – “Little change in home loan rates, Freddie Mac reports” (4-22-10)

“The typical rate being offered this week for a 30-year fixed-rate home loan was unchanged at 5.07%, with borrowers paying 0.6% of the loan balance in upfront lender fees, Freddie Mac said Thursday. For 15-year fixed mortgages, the rate pulled back from 4.40% last week to 4.39% this week with 0.7% in upfront lender fees, according to the weekly survey of lenders by the big home-loan buyer.”

Housing Wire – “Obama Urges Support for Financial Reform Legislation” (4-22-10)

“He urged the adoption by Congress of a single reform bill that not only protects the financial sector and consumers alike, but gives shareholders more power in the financial system and brings ‘complex financial dealings out of the shadows.’ In particular, Obama praised the bill passed by a Senate panel this week that aims to bring greater transparency to derivatives trading.”

Housing Wire – “Home Prices Drop Again in FHFA Report” (4-22-10)

“US house prices dropped another 0.2% on a seasonally adjusted basis from January to February, following a 0.6% drop the month before, according to the Federal Housing Finance Agency (FHFA) house price index (HPI). While there have been scattered upward ticks since the 13.3% fall from the April 2007 peak, the curve on the double-dip might be taking shape as shown in the graph below.”

Orange County Register – “Durables Orders in U.S. Probably Rose as Home Sales Lag Behind” (4-22-10)

“Orders for long-lasting goods probably climbed in March for a fourth consecutive month, while sales of new homes increased from a record low, pointing to an uneven U.S. recovery. Bookings for durable goods rose 0.2 percent after a 0.9 percent February gain, according to the median forecast of 75 economists surveyed by Bloomberg News. New-home purchases advanced 5.5 percent to a 325,000 annual rate from the prior month, another report may show.”

CNN - “New-home sales rise fastest in 47 years” (4-23-10)

“New home sales improved in March at the fastest single-month rate in 47 years, according to a government report released Friday, as buyers snatched up properties ahead of the tax credit that’s set to expire. New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The gain snapped a four-month streak of declines.”

Housing Wire – “Fannie and Freddie Unite Against Mortgage Modification Scams” (4-23-10)

“A new coalition, led by Fannie Mae (FNM: 1.26 +1.61%) and Freddie Mac (FRE: 1.515 +1.00%), will launch a national campaign to prevent loan modification scams. The Loan Modification Scam Prevention Network also includes the Lawyer’s Committee for Civil Rights Under Law and NeighborWorks America, which is a network of community development and affordable housing organizations. The network will work to educate borrowers, take in complaint reports and coordinate with local, state and federal enforcement agencies.”

Housing Wire – “Flat Febasruary House Prices Spur Foreclosure Inventory Fears: RadarLogic” (4-23-10)

“House prices remained flat in February on both a month-over-month and year-over-year basis, according to the Radar Logic Residential Property Index (RPX). The 2% increase in the Western region RPX composite balanced the 2% decline in the Northeast and South RPX, keeping prices stable overall from last month. Transactions grew the most since last year in metropolitan areas that are hardest-hit with foreclosures, Radar Logic said, including Las Vegas, Chicago, Miami and Detroit.”

Bloomberg - “U.S. Homebuilders Rally as March Shows Sales Surge” (4-23-10)

“U.S. homebuilding stocks, led by Lennar Corp. and Pulte Group Inc., are headed to the biggest weekly gain since July as two reports showed sales are recovering from the depths of the housing-market collapse. New home sales increased 27 percent in March from the previous month to an annual pace of 411,000, the largest rise since recordkeeping began in 1963, the Commerce Department said today. Sales of existing homes jumped 6.7 percent to 5.35 million in March, the first increase in four months, the National Association of Realtors reported yesterday.”

Realty Times – “Conditions Versus Obligations” (4-23-10)

“A problem arises when Agents mistake conditions for objections. Agents often treat a condition as an objection and beat themselves up when they don’t get the transaction or contract signed. The definition of a condition is a valid reason for the prospect to not move forward. You still need to try all the techniques of handling the objection. You just need to realize that a condition is usually linked to their ability or authority to act now.”

Orange County Register – “Home prices up in 70% of O.C.” (4-23-10)

“66 of O.C.’s 83 ZIP codes had gains in their respective median selling price. Overall, prices were +14.0% vs. a year ago. Taking sales volume in consideration, home pricing is up in ZIPs representing 70% of the Orange County market.”

Orange County Register – “South Coast home sales up 21% over year” (4-23-10)

“The sales-weighted average of median price changes in South Coast ZIPs was -10% vs. a year ago. Price change in all Orange County beach towns ran +13% vs. a year ago.”

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The Norris Group Real Estate News Roundup 4/21/10

Wednesday, April 21st, 2010

Today’s News Synopsis:

A scammer in Orange County was recently caught renting out houses which he did not own. The Business Forecasting Center predicts California unemployment will stay above 12 percent for the remainder of 2010. According to the MBA, mortgage loan application volume increased to 13.6 percent from last week. Trulia reports that 20 percent of homes in the U.S. received a deduction in asking asking price from April 2009 to April 2010.

In The News:

MSN - “Forecast: Recession over, but recovery slow” (4-21-10)

“The Great Recession may be over, but the great recovery will likely take several years in Northern California, according to a report released Wednesday. California’s jobless rate – already at a modern-day record – will remain above 12 percent for the remainder of the year, and double-digit territory through 2011. The jobless rate should dip below 10 percent in 2012, according to the Business Forecasting Center at the University of the Pacific.”

Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (4-21-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 16, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 13.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 13.9 percent compared with the previous week.”

Wall Street Journal – “Land Prices Jump as Home Builders Move In” (4-21-10)

“Nationally, finished-lot prices, which saw low-single digit increases in the first quarter, are up nearly 20% from the trough, largely considered early 2009, according to a land survey released this week by housing-research firm Zelman & Associates. Lot prices in Phoenix and Southern California’s Inland Empire have soared more than 60%. Sacramento, Orlando and Los Angeles are up between 30% and 40%.”

Housing Wire – “Trulia Sees 26% Decline in Number of Listings with Price Reductions” (4-21-10)

“The rate of house listings where the seller made at least one reduction in asking price declined 26% in April 2010 compared to the same month one year ago, according to research by Trulia.com. Trulia said 20% of asking prices for current home listings were reduced at least once, compared to 27% of asking prices in April 2009. Las Vegas experienced a 54% decrease in listings with at least one price reduction, from 28% in April 2009 to 13% in April 2010. San Diego experienced a similar decrease at 52%. San Francisco and New York both experienced a 45% year-over-year decline and Los Angeles experienced a 40% drop.”

Housing Wire – “CMBS Defaults to Pass 11% by 2011: Fitch” (4-21-10)

“Commercial mortgage loan defaults look likely to rise through the end of the year, with another 4.4% likely in 2010 and the overall default rate expected to pass 11% among securities rated by Fitch Ratings, the credit-rating agency said today. New CMBS defaults increased more than five-fold last year, totaling 1,464 loans worth $17.75bn, Fitch said.”

Housing Wire – “Freddie Urges 12-Month Forbearance in Flood Areas” (4-21-10)

“Government-sponsored enterprise (GSE) Freddie Mac (FRE: 1.48 -0.67%) said today it is extending mortgage relief to borrowers whose houses were affected by recent floods in Massachusetts, New Jersey, Rhode Island and West Virginia. Freddie is giving its servicers discretion to reduce or suspend mortgage payments for up to 12 months for borrowers with Freddie-owned mortgages, although each case must be individually assessed to determine the appropriate alternative.”

Bloomberg - “Mortgage Servicer Profits May Threaten Obama Housing Programs” (4-21-10)

“Mortgage servicers may have to take a pay cut to participate in President Barack Obama’s programs to modify home loans and advance the sale of properties in default. Starting this month, the Treasury Department is paying companies that collect mortgage payments and examine pleas for assistance a $1,500 stipend for approving the sale of homes for less than the loan balance, known as a short sale. The servicers also get $1,000 for each completion under the government’s year- old mortgage modification program, and additional stipends over three years if borrowers stay current on their payments.”

Orange County Register – “Anaheim businessman collects rent on vacant homes he does not own” (4-21-10)

“California’s foreclosure crisis has spawned an unusual operation by a bankrupt Orange County businessman who takes control of vacant homes and rents them out, according to police, property records and neighbors. From an office at an Anaheim massage clinic, Blair Hanloh has recorded deeds on at least 12 vacant houses in Southern California that he does not own. Property records show no evidence that the owners deeded interest to him—and five owners interviewed by The Orange County Register said that they had not.”

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The Norris Group Real Estate News Roundup 4/20/10

Tuesday, April 20th, 2010

Today’s News Synopsis:

According to MDA DataQuick, 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 claims that the gap between monthly rents and mortgage payments is at its lowest level in almost 20 years, making it easier to rent. Cushman & Wakefield estimates the commercial real estate market will take the longest to recover. HAMP completed 230,000 permanent modifications over 12 months.

In The News:

DQNews - “California Foreclosure Activity Declines Again” (4-20-10)

“A total of 81,054 Notices of Default (“NODs”) were recorded at county recorder offices during the January-to-March period. That was down 4.2 percent from 84,568 for the prior quarter, and down 40.2 percent from 135,431 in first-quarter 2009, according to San Diego-based MDA DataQuick.”

Mercury News – “New Obama mortgage plan at risk from fraud, report says” (4-20-10)

“Recent changes to the Obama administration’s mortgage assistance program may make it more vulnerable to fraud, a government watchdog says. The changes, announced last month, are intended to make it easier for struggling homeowners to avoid foreclosure. But the administration hasn’t done enough to warn the public about fraud and hasn’t included sufficient safeguards to prevent abuse, said the special inspector general for the Troubled Asset Relief Program, or TARP.”

Daily News – “Should you buy or rent a home? Cost gap narrows” (4-20-10)

“Thinking of buying a home? Consider this: The gap between monthly rents and mortgage payments is at its lowest level in almost 20 years. In some markets, the difference can be less than $100, according to a national study conducted for The Associated Press by Marcus & Millichap Real Estate Investment Services.”

Housing Wire – “Regulators Say Lehman Failure Makes Case for Financial Reform” (4-20-10)

“Driven to bankruptcy by massive downgrades of its failed subprime mortgage-related assets, now-defunct Lehman Brothers presents several lessons for lawmakers writing the policy response to ongoing financial fallout, expert witnesses told the House Financial Services Committee today. Sen. Ed Perlmutter (D-Colo.) cited a recent report on the causes of the Lehman bankruptcy, which found regulators supposedly knew of accounting gimmicks that allowed the firm the liquidity freedom to take on increasingly risky investments, but did not enforce corrective action.”

Housing Wire – “C&W: Commercial Real Estate Recovery Uneven Across US” (4-20-10)

“The national real estate market is in better shape than analysts anticipated given the largest employment declines in more than 70 years, but regional markets with the highest job losses, and the related overabundance of commercial properties vacant as businesses fail, will take longer to dig out of the recession, according to a report from Cushman & Wakefield (C&W). C&W, a real estate advising firm, said in its Economic Pulse report, that the recession did not hit all real estate markets equally.”

Housing Wire – “Financial Services Authority Begins Investigation of Goldman Sachs” (4-20-10)

“The Financial Services Authority (FSA), the market watchdog in the UK, will begin a formal enforcement investigation into Goldman Sachs (GS: 159.98 -2.05%) in the wake of the recent action by the Securities and Exchange Commission (SEC). Last week, the SEC charged Goldman for allegedly defrauding investors in a financial product tied to subprime mortgages. The SEC alleges Goldman and Fabrice Tourre, a vice president in the firm, misled and even omitted key facts about a synthetic collateralized debt obligation (CDO), ABACUS 2007-AC1.”

Housing Wire – “TARP Watchdog Says HAMP Changes Could Impede Modifications” (4-20-10)

“While foreclosures and bank repossessions rose in Q110 above year-ago levels — 16% and 35%, respectively — HAMP results in ‘very little progress’ so far, SIGTARP said, with only 230,000 permanent modifications completed over 12 months of operation (illustrated below). This represents only 8.2% of the foreclosures initiated in 2009, and fewer than only the most recent quarter’s bank repossessions.”

Bloomberg - “U.S. REITs May Raise More Than $25 Billion in 2010, NAREIT Says” (4-20-10)

“Real estate investment trusts in the U.S. may exceed the $25 billion they raised last year in share sales as an economic recovery boosts investor confidence, according to the industry’s main lobbying group. The money raised in the stock market last year principally went toward improving balance sheets after companies became too highly leveraged, said Michael Grupe, executive vice president of research at the National Association of Real Estate Investment Trusts. REITs will seek funds to acquire properties this year, he said.”

Orange County Register – “Laguna Beach homes taking 32% less time to sell” (4-20-10)

“The community’s share of its new deals in escrow involving distressed properties — foreclosures or short sales — is 8% or -21.95 percentage points vs. countrywide share. Note that this community has 1.2% of all the deals in escrow countywide — and 1.1% of all distressed deals in the works. Meanwhile, the city of Laguna Beach has 4.0% of the entire supply of resale residences that are listed for sale in Orange County.”

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