Sources:
California incomes rose 2.5% in 2010
February Existing-Home Sales Decline following Sustained Gains
New-Home Sales Hit Record Low in February
California pending home sales, distressed sales rise in February
California Housing Production Continues Decline in February, CBIA Announces
Housing raises US recession alert
U.S. Commercial Property Prices Fell for Second Straight Month in January
Stress tests suggest economy may slide back into crisis: IRA
FDIC Files Lawsuit Against Former WaMu Execs and Wives
Today’s News Synopsis:
RadarLogic claims national home prices declined 3.8% in December. California added 100,000 jobs in February. Freddie Mac completed 23,017 loan modifications in January and February. Jerry Brown’s bid to dissolve around 400 redevelopment agencies may make a come back in a compromise on tax increases.
In The News:
Los Angeles Times – “California adds nearly 100,000 jobs in February” (3-25-11)
“A hiring surge led the California’s hallmark industries – high-tech, movies and tourism – generated nearly 100,000 new jobs in February and provided the surest sign yet that the state economy is on the mend. The seasonally adjusted jump in the number of people working to 96,500 was the highest monthly increase since the current record system began in 1990, state officials said.”
Housing Wire – “January home prices drop to a four-year low” (3-25-11)
“RadarLogic said an oversupply of homes, high rates of mortgage defaults, tighter lending standards and a housing market riddled with foreclosures weighed down January prices. The index, which tracks home prices across 25 major markets, declined 3.8% between December and January and 3.4% year-over-year.”
Housing Wire – “Freddie Mac completes 23,000 loan mods, single-family delinquency rate drops” (3-25-11)
“Freddie Mac completed 23,017 loan modifications during the first two months of 2011 and said single-family delinquencies on mortgages held or backed by the GSE dropped in February.”
DSNews - “SEC Rules Banks Must Allow Audit of Foreclosure Practices” (3-25-11)
“The NYC Pension Funds called for an audit of the banks’ practices in November and again in January to no avail, but this week the Securities and Exchange Commission (SEC) ruled that the request from the shareholders must be upheld.”
Housing Wire – “Broker compensation rule captures more heat in federal court” (3-25-11)
“the final rule not only prohibits loan originators from arranging loan terms that result in higher consumer costs, the same prohibition applies to offering consumers lower cost mortgage loans to meet competition and to save the consumer money.”
Bloomberg - “California Redevelopment Agencies May Be Back in the Shadow of the Gallows” (3-25-11)
“California Governor Jerry Brown’s bid to dissolve about 400 redevelopment agencies and use their revenue for schools and local government may be resurrected in a compromise on tax increases to close the budget deficit, according to a fiscal adviser to the Senate’s top Democrat.”
Looking Back:
New rules for the HAMP program may require servicers to screen borrowers for modification after only 31 days of delinquency. ForeclosureListings.com shows that California experienced an 11.9% increase in foreclosures. Freddie Mac reports the 30-year FRM rate is currently at 4.99 percent. According to the Comptroller of the Currency, the re-default rate for modified loans is over 50 percent.
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.