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California Real Estate Headline Roundup

Posts Tagged ‘Pulte’

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

Tuesday, August 10th, 2010

Today’s News Synopsis:

The new FHA short refinancing program will provide additional refinancing options to underwater homeowners starting Sept. 7. According to Integrated Asset Services, nationwide home prices increased 1.1% in the second quarter. Zillow reports California’s current rate on 30-year mortgages is 4.34%. CoreLogic estimates that short sales in Arizona, California, Florida and Texas will cost lenders $310m in unnecessary losses in 2010.

In The News:

Sign on San Diego - “Q&A: Pulte Homes exec on the San Diego housing market” (8-10-10)

“Q:Why is your company looking to build in the San Diego market? A: We are trying to be very strategic in our land acquisitions because there is a limited availability of finished lots. We see the economy starting to recover here with companies beginning to invest, especially in the high-tech and biotech markets. Engineers are relocating here. It tells us the demand is there.”

Housing Wire – “FDIC Launches Unit to Liquidate Banks under Dodd-Frank” (8-10-10)

“The CFI will review bank holding companies (BHCs) with more than $100bn of assets as well as non-bank financial companies designated as systemically important by the new Financial Stability Oversight Council. The CFI unit will also carry out the FDIC’s new authority to implement orderly liquidations of failed BHCs and non-bank financial firms.”

Housing Wire – “Home Prices Nationwide Increase 1.1%: IAS360″ (8-10-10)

“Integrated Asset Services, LLC (IAS), a Denver-based collateral valuation and default management service firm, released its latest IAS360 House Price Index (HPI) Tuesday reporting that collectively, nationwide home prices increased 1.1% from the first quarter of 2010 to the second. This is down 0.9% from the same period last year and down 16.7% from the survey’s all-time HPI high in Q407.”

Housing Wire – “FHA Short Refinancing Program Likely to Have Low Impact on Housing: KBW” (8-10-10)

“As HousingWire reported last week, the new program will provide additional refinancing options to underwater homeowners starting Sept. 7. To be eligible for the new loan, the homeowner must be underwater but still current on the mortgage. A credit score of 500 or better is required, and once refinanced and insured by the FHA. The new refinanced loan must have a loan-to-value ratio of no more than 97.75%. The borrower’s existing first-lien holder must agree to write at least 10% of the unpaid principal balance, and it must bring the borrower’s combined loan-to-value ratio (LTV) on that first mortgage to no more than 115%. The existing refinanced loan cannot be an FHA-insured one.”

Housing Wire – “Zillow: Weekly Rate on 30-Year Fixed Rate Mortgage Averages 4.3%” (8-10-10)

“The 30-year fixed-mortgage rate (FRM) slightly increased week-to-week nationally to an average of 4.3%, according to the Zillow Mortgage Marketplace weekly update. This is up 0.02% from the record low set last week. Regionally 30-year rates are varying, but the majority of states saw an escalation. California’s current rate is 4.34%, up from 4.33% last week, as is New Jersey’s at 4.28%, up from 4.27%.”

Housing Wire – “DebtX June CRE Loan Value Up to 77.4%” (8-10-10)

“The value of commercial real estate (CRE) loans that collateralize commercial mortgage-backed securities (CMBS) priced by DebtX rose to 77.4% at the end of June from 76.6% in May, the loan-sale adviser said in a press release Tuesday.”

Housing Wire – “Short Sales Cost Lenders $310m More Than Necessary, CoreLogic Study Finds” (8-10-10)

“The study projects that more than half of short sales happen in Arizona, California, Florida and Texas and will cost lenders an estimated $310m in unnecessary losses during all of 2010. These losses average $41,500 per short sale. Potential fraud, such as flipping or offer misrepresentation, likely happens in one in every 53 short sale transactions. CoreLogic examined a representative data sample of single family residence (SFR) short sale transactions from the past two years, representing 98% of real estate transactions and 85% of mortgage financing details, the firm said.”

Housing Wire – “Risk of House Price Decline Slightly Shrinks in PMI Index” (8-10-10)

“The Q310 market risk index, which uses Q110 data, dropped to 51.9 from 53.8. The score indicates the probability (from zero to 100) that the price of homes will on average be lower after two years. And while the risk of declines is less, economic analysts say house prices will likely continue to drop.”

Bloomberg - “`Buy and Bail’ Homeowners Get Past Loan Restrictions” (8-10-10)

“Real estate professionals call it ‘buy and bail,’ acquiring a new house before the buyer’s credit rating is ruined by walking away from the old one because it’s ‘underwater,’ or worth less than the mortgage. It’s an attempt to escape payments on a home whose value may never recover while securing a new property, often at a lower price with a more affordable loan. The practice, which constitutes fraud if borrowers lie on loan applications, is continuing even after Fannie Mae and Freddie Mac, the biggest U.S. mortgage-finance companies, beefed up standards to prevent it, according to brokers such as Collier and Meg Burns, senior associate director for congressional affairs and communications at the Federal Housing Finance Agency.”

Bloomberg - “Investors Doubt Mortgage-Bond Revival Until 2012, Moody’s Analysts Say” (8-10-10)

“Investors doubt the market for home- loan securities without government backing will revive until 2012, according to Moody’s Investors Service. About 74 percent of attendees surveyed for a June conference by the New York-based rating company responded that issuance, which essentially halted in 2007, will make a substantial ‘comeback’ no sooner than 2012, Moody’s analysts Navneet Agarwal and Brian Harris wrote in an Aug. 6 report.”

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 5/5/10

Wednesday, May 5th, 2010

Today’s News Synopsis:

The MBA reports mortgage loan application volume increased by 4 percent from last week. Treasury Department secretary Timothy Geithner is supporting a tax on the liabilities of banks. Laurie Goodman, an analyst at Amherst Securities Group LP, claims that second mortgages are threatening the housing market.

In The News:

Mortgage Bankers Association – “Purchase Applications Continue to Increase, Refinance Activity Declines in Latest MBA Weekly Survey” (5-5-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 30, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 4.0 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 5.1 percent compared with the previous week.”

Associated Press – “Pulte pares 1Q loss and now expects profit in 2010″ (5-5-10)

“PulteGroup Inc., the nation’s largest homebuilder, said Wednesday it slashed its loss in the first quarter and forecast it would be profitable this year. That would mark a major turning point for the builder, which has posted a loss now for 14 consecutive quarters as the worst housing downturn in decades unfolded.”

Housing Wire - “As Geithner Pushes Bank Tax, Outsourcers Look to Ease the Pressure” (5-5-10)

“In a speech today in front of the Senate Finance Committee, Treasury Department secretary Timothy Geithner renewed the push for the Financial Crisis Responsibility Fee, a tax on the liabilities of banks, proposed by the administration in January. The announcement comes at a time when bank wealth managers are becoming increasingly pressured by regulatory reform, according to a poll conducted by SEI, a third-party portfolio servicer.”

Housing Wire – “Senate Begins Considering Financial Reform Legislation” (5-5-10)

“The US Senate today resumes consideration of S 3217, the Restoring American Financial Stability Act. Senators could begin voting on the bill’s 55 amendments this week. At the same time, a separate bill that looks to regulate the over-the-counter (OTC) derivatives market could potentially be wrapped into the larger financial reform legislation, with one credit rating agency concerned that certain additions to potential amendment, if passed, may sap the market of players.”

Bloomberg - “Mortgage Bond Spreads at Widest in Five Months: Credit Markets” (5-5-10)

“Yields on Fannie Mae and Freddie Mac mortgage securities that guide U.S. home-loan rates climbed to the highest in five months relative to Treasuries as Europe’s worsening government finances lead investors to shun all but the safest assets.”

Bloomberg - “U.S. Lets Second Loans Threaten Housing, Goodman Says” (5-5-10)

“The U.S. government and the nation’s largest banks are still allowing second mortgages to jeopardize the housing market, according to Laurie Goodman, an analyst at Amherst Securities Group LP.”

Inman - “5 must-knows about hiring a home stager” (5-5-10)

“There’s no clear-cut career path to becoming a stager. Most, but not all, stagers have had some kind of professional training specific to staging.”

Inman - “Top 10 residential lenders: Quicken Loans, BB&T join the list” (5-5-10)

“Retail lenders Quicken Loans Inc. and BB&T Corp. elbowed their way onto a list of Top 10 residential lenders maintained by MortgageDaily.com for the first quarter, bumping MetLife Inc. and Flagstar Bank.”

Looking Back:

The median price of a home in March 2009 was $253,000. Bernanke predicted that the recession would end in the second half of 2009. Economists predicted that the Orange County and Los Angeles regions would lose 300,000 jobs in 2009.

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The Norris Group Real Estate News Roundup 2/9/10

Tuesday, February 9th, 2010

Today’s News Synopsis:

Altera Real Estate foresees significant improvement in the Orange County real estate market. According to IAS, national home prices have returned to 2004 levels. Forecasters from iEmergent expect approximately $580 billion in mortgage refinancing during 2010.

In The News:

Orange County Register – “Housing market warming along south coast?” (2-9-10)

“Steven Thomas of Altera Real Estate claims in his latest biweekly report that this is the strongest demand has looked in Orange County’s real estate market since 2005.”

Housing Wire – “Pulte Posts Loss Despite $917m Tax Refund” (2-9-10)

“Pulte Homes (PHM: 11.08 -0.45%) posted a net loss of $117m, $0.31 per share, in Q409, even though it will receive a $917m tax refund later this year. The Michigan-based homebuilder said $800m of the tax refund comes from the extension of the net operating loss (NOL) carryback allowance”

Housing Wire – “New Program Rewards Current Mortgage Borrowers” (2-9-10)

“if a borrower has a $200,000 mortgage and the value dropped to $150,000, a bank using the RH Reward program could give a $25,000 incentive to the borrower if the borrower remains current. How that reward is monetized depends on the borrower.”

Housing Wire – “December Drop Brings IAS Index Back to 2004 Levels” (2-9-10)

“The index is a county-level measure of median sales price of single-family residences in five US Census Bureau regions, nine Census divisions and 360 counties. After five months of declines, the index is now 5.3% below its 2008 level. In 2008, the index declined 11.7% from its 2007 level. The index is now at a level last seen in mid-2004, IAS said.”

Housing Wire – “Mortgage Financing Poised to Drop in 2010: iEmergent” (2-9-10)

“Mortgage volumes in 2010 will not reach the same levels as 2009 as the slide toward the collapse-curve bottom continues, according to iEmergent, the market research and advisory firm for the financial services industry. The firm projects the purchase-to-refinancing ratio will reach a 49% to 51% split in 2010. Forecasters predict between $531bn and $643bn in refinancing volume in 2010. Refinance volumes will be less than half of 2009 levels, and lenders relying on those transactions in 2009 will be at a great risk in 2010, according to the report.”

Wall Street Journal – “No Exit in Sight for U.S. As Fannie, Freddie Flail” (2-9-10)

“Nearly a year and a half after the outbreak of the global economic crisis, many of the problems that contributed to it haven’t yet been tamed. The U.S. has no system in place to tackle a failure of its largest financial institutions. Derivatives contracts of the kind that crippled American International Group Inc. still trade in the shadows. And investors remain heavily reliant on the same credit-ratings firms that gave AAA ratings to lousy mortgage securities.”

Looking Back:

One year ago, two thirds of Americans expressed support for the $15,000 first time home buyer program, which the senate was considering. The MBA expected $171 billion in mortgages to mature in 2009. A government official announced plans to buy troubled assets.

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The Norris Group Real Estate News Roundup 11/4/09

Wednesday, November 4th, 2009

Today’s News Synopsis:

The MBA’s weekly mortgage survey shows that loan application volume increased by 8.2 percent, on a seasonally adjusted bases, from last week. The FHA expects 24 percent of all loans insured in 2007 to default. The Federal Reserve’s FOMC announced that it will not buy the full $200 billion debt amount that it had previously planned to take. BarCap reports that the 30-plus day delinquency rate increased to 5.5 percent in October.

In The News:

Orange County Register – “Are we headed for the same real estate winter doldrums?” (11-4-09)

“Historically, over a 30 year trend, 70% of all Orange County homes sell in the first seven months of the year. Seasonality is the term used by real estate experts. Typically, most buyers are active in the spring and summer markets. Once Labor Day comes, they tend to focus on the holidays. Activity drops off each month. December is the slowest month.”

Mortgage Bankers Association – “Mortgage Refinance Applications Increase in Latest MBA Weekly Survey” (11-4-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 30, 2009. The Market Composite Index, a measure of mortgage loan application volume, increased 8.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 7.9 percent compared with the previous week.”

Wall Street Journal – “FHA Digging Out After Loans Sour “ (11-4-09)

“Although the FHA has tightened credit standards, many of the 2007 and early 2008 mortgages are going bad. The agency expects defaults on 24% of all loans insured in 2007, and 20% of those backed in 2008.”

Housing Wire – “In This Corner: QuestSoft President and Founder Leonard Ryan” (11-4-09)

“Mortgage Disclosure Improvement Act (MDIA) is causing issues because most loan software products keep track of only the latest disclosure dates due to the complexity of the calculations. S.A.F.E. Act is causing the most internal personnel problems due to education and registration requirements that differ from state to state. Higher Priced Mortgage Loans (HPML) with the Home Mortgage Disclosure Act (HMDA) changes as of October 1 are becoming an out and out nightmare without automation because every time an Annual Percentage Rate (APR) changes or the note rate adjusts, the loan must be completely recalculated and possibly re-underwritten.”

Housing Wire – “Fed Won’t Purchase Full $200bn Agency Debt, FOMC Says” (11-4-09)

“The Federal Reserve’s Federal Open Market Committee (FOMC) said it won’t purchase as much agency debt as it previously announced. The $175bn of agency debt purchases is less than the previously announced $200bn, but the FOMC said the amount ‘is consistent with the recent path of purchases and reflects the limited availability of agency debt.’”

Housing Wire – “CMBS Delinquencies Swell to 5.5% in October, says BarCap” (11-4-09)

“The 30-plus day delinquency rate jumped 41bps to 5.5% in October as current loans deteriorated and transferred to special servicers. For the past three months, delinquencies have grown an average of 34bps, and BarCap analysts expect the pace to increase through 2009 and into 2010.”

Housing Wire – “Pulte’s Closings Slip in Q309, Despite Merger” (11-4-09)

“Pulte Homes (PHM: 9.55 +3.47%) lost $361.4m, or $1.15 per share, in Q309, compared to $280.4m, or $1.11 per share, in Q308. Results were impacted by $86.7m in charges and transaction costs associated with Pulte’s merger with Centex Corporation, and $163.8m in inventory impairments and other land-related charges.”

Housing Wire – “GMAC’s Mortgage Unit Loses $747M in Q309″ (11-4-09)

“The Q309 loss was due primarily to legacy assets in GMAC’s mortgage operations. The unit experienced a pre-tax loss from continuing operations of $747m during the quarter. The loss is an improvement from Q308’s $1.9bn pre-tax loss from continuing operations”

Bloomberg - “Senate May Pass Homebuyer Tax Credit Extension Today” (11-4-09)

“The U.S. Senate may approve as early as today a $45 billion plan to expand a tax credit for first- time homebuyers, extend jobless benefits and provide tax refunds to money-losing companies.”

Bloomberg - “U.S. Home Price Slump to Last to Mid-2010, Pimco Says” (11-4-09)

“The slump in U.S. housing prices is unlikely to end before the middle of next year, and statistics portraying rising values are misleading, according to Pacific Investment Management Co. An S&P/Case-Shiller index for 20 metropolitan areas showed values rising 4.8 percent in the four months through August after a record 33 percent drop from its July 2006 peak. Such statistics are being distorted by U.S. efforts to reduce foreclosures, which are temporarily limiting sales of seized homes, said Scott Simon, Pimco’s mortgage-bond chief.”

Inman - “ZipRealty narrows losses” (11-4-09)

“ZipRealty Inc. edged closer to profitability during the third quarter, as transactions grew 30.6 percent and revenue by 12.8 percent from a year ago, the company said.”

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