The Norris Group Blog

Today’s News Synopsis:

California government agencies got rid of 37,300 jobs in September. NAR reports existing home sales increased 10% last month. 47.5% of sales performed by agents last month were from distressed homes. U.S. home prices decreased 1.5% from a year ago, according to CoreLogic.

In The News:

Los Angeles Times – “Government job cuts ravage California” (10-23-10)

“Weighed down by a struggling economy, government agencies in California shed 37,300 workers last month — more jobs than were lost in the private sector — as cities and counties made their biggest payroll cutbacks since at least 1990.”

CBIA - “California Housing Starts Post Decline in September, CBIA Announces” (10-25-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,562 total housing units in September, down 16 percent from the same month a year ago and down 31 percent from August. Permits for single-family homes totaled 1,604, down 30 percent from September 2009 and down 14 percent from the previous month, while multifamily permits totaled 958, up 27 percent from a year ago but down 48 percent from August.”

NAR - “September Existing-Home Sales Show Another Strong Gain” (10-25-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, jumped 10.0 percent to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 million-unit pace in September 2009 when first-time buyers were ramping up in advance of the initial deadline for the tax credit last November.”

New York Times – “Foreclosures Had Errors, Bank Finds” (10-25-10)

“Even as Bank of America begins to restart foreclosure proceedings in 23 states on Monday, the bank confirmed that it had discovered errors, including incorrect data and misspelled names, in the paperwork it has reviewed.”

Housing Wire – “Monday Morning Cup of Coffee” (10-25-10)

“In his weekly address, President Obama said the coming financial reform will defend the interests of the middle class, as the Consumer Financial Protection Bureau will guard against unfair practices in mortgages and foreclosures.”

Housing Wire – “Bernanke: Federal banking agencies reviewing mortgage servicing operations” (10-25-10)

“Federal banking agencies are conducting an in-depth review of practices at the nation’s largest mortgage servicing operations as a result of reported irregularities in foreclosure practices, Federal Reserve Chairman Ben Bernanke said Monday. Preliminary results are expected next month.”

Housing Wire – “Real estate agents surveyed say distressed home sales nearly half of market” (10-25-10)

“Distressed home sales took up 47.5% of the total home purchases in September, up from 45.7% in August and 44.8% a year ago, according to a survey of more than 3,000 real estate agents. Campbell Surveys and Inside Mortgage Finance tapped a network of agents across the country to determine home sales and mortgage patterns.”

Housing Wire – “Fitch Ratings assigned triple-A to $735.9M Wells Fargo issue” (10-25-10)

“Fitch Ratings assigned its triple-A rating to most classes in a coming $735.9 million issue of commercial mortgage-backed securities by Wells Fargo.”

Housing Wire – “S&P: Defaults on CMBS loans to peak beyond 2011″ (10-25-10)

“S&P studied commercial real estate loans in CMBS it rates through June 2010. Roughly 1,200 CMBS loans defaulted in the first half of 2010 and should pass the 2,138 that occurred throughout 2009. Between January 2009 and June 2010, more than 3,300 defaulted for a cumulative default rate of 9.4% of those loans studied.”

Housing Wire – “CoreLogic home price index drops for first time in 2010″ (10-25-10)

“Home prices in the U.S. dropped 1.5% in August from a year ago, the first annual drop in prices measured in the CoreLogic (CLGX: 17.99 0.00%) Home Price Index in 2010.”

Housing Wire – “Obama housing scorecard: Market fragile with signs of stabilization” (10-25-10)

“The U.S. housing market remains fragile but is showing some signs of stabilization, according to the Obama administration’s 2010 October housing scorecard. Rates for 30-year, fixed-rate mortgages remain at all-time lows, helping 7.1 million homeowners refinance since April 2009 and resulting in $12.7 billion in homeowner savings, the scorecard noted.”

Bloomberg - “Bair Says Regulators Will Uncover More Flaws in Foreclosures” (10-25-10)

“Regulators are likely to discover more problems related to loan servicing by some of the biggest banks as they probe claims that documents were mishandled, Federal Deposit Insurance Corp. Chairman Sheila Bair said.”

Bloomberg - “Mortgage Lenders Say `Enough Is Enough’ as Buybacks Curb Loans” (10-25-10)

“Home lenders are making it tougher to get loans as investors step up demands for refunds on defective mortgages, damaging the housing market, executives said today at an industry conference.”

Bloomberg - “U.S. Mortgage Modifications Slow as Fewer Borrowers Qualify, Treasury Says” (10-25-10)

“An additional 27,840 delinquent borrowers qualified for permanent loan modifications through the Treasury’s Home Affordable Modification Program, bringing the total to 495,898. The 5.9 percent increase from August was the smallest gain since at least September 2009.”

Bloomberg - “Refinancing Surge Lifts Banks Amid Foreclosure Scrutiny” (10-25-10)

“Wells Fargo & Co., the biggest U.S. mortgage lender, received $194 billion of loan applications in the third quarter, the second-most in its history, Chief Financial Officer Howard Atkins said last week. About 80 percent were to refinance. Bank of America Corp. CFO Charles Noski said lending margins are up and demand should remain robust through yearend.”

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.