Today’s News Synopsis:
MERS recently won a case in an appeals court allowing them to foreclose on properties and assign a deed of security to to properties that are already undergoing the securitization process. In a big story in the news, California saw a decrease in foreclosure notices with the improving housing market and changes in loan policies. With the settlement between the top five banks and the state attorneys about to be completed, more servicers are hoping to join in on the settlement.
In The News:
NAHB - “GAO Study Finds Appraisal Process Inadequately Monitored” (1-23-12)
“Zeroing in on yet another deficiency of a faulty appraisal process that is hurting home values, hampering a housing recovery and often killing sales of homes coming in below the contract sales price, the Government Accountability Office (GAO) earlier this month reported that the Appraisal Subcommittee, which oversees the appraiser regulatory programs established by the states, needs to improve its monitoring procedures.”
DS News – “First Three Bank Failures of 2012 to Cost FDIC $244M” (1-23-12)
“Three community-based lenders went under over the weekend in Georgia, Florida, and Pennsylvania, marking the first bank failures of 2012. Altogether, the three closings are expected to cost the FDIC an estimated $243.8 million.”
Housing Wire - “Regions reports 4Q loss of $548 milion” (1-24-12)
“Regions Financial Corp. (RF: 5.105 +3.76%) reported a fourth-quarter loss of $548 million, or 48 cents a share, largely driven by a $731 million non-cash goodwill impairment charge.”
Bloomberg - “Fitch Will Release Mortgage Models as Ranieri Lender Complains of Impact” (1-24-12)
“Fitch Ratings is planning to share its grading model for U.S. home-loan bonds with issuers and investors as industry pioneer Lewis Ranieri’s lender complains that credit-ranking firms are hindering the market’s recovery.”
Realty Times – “Accidental Property Managers May Pose Problems for Brokerages” (1-24-12)
“The phenomenon of “accidental landlords” has been with us for a while. Last month’s Wall Street Journal article (Dec. 12, 2011) on the topic didn’t uncover anything new. Time Magazine had written about it as early as 2009. In both cases, “accidental landlord” referred primarily to homeowners who had become landlords as a result of (i) either a need to move or a need for cash flow, and (ii) an inability to sell in this continuing depressed real estate market.”
Housing Wire – “Appeals court upholds MERS right to assign, foreclose on a mortgage” (1-24-12)
“Mortgage Electronic Registration Systems Inc. has the right to assign a security deed and foreclose on a property that becomes part of the securitization process, the U.S. Court of Appeals for the 11th Judicial Circuit held in a new opinion.”
CNN Money - “Meet the new Federal Reserve members” (1-24-12)
“It’s a new year. And that means a new, and probably less divided, Fed. The Federal Reserve is playing its annual game of musical chairs, rotating voting members on its policymaking committee.”
Wall Street Journal - “New Spat Over Upper East Side Rent” (1-24-12)
“A real-estate developer is seeking to demolish one of the city’s oldest, privately developed low-income housing complexes, saying the Upper East Side apartments can each only fetch rent of $600 a month in their current state.”
Bloomberg – “California Home Foreclosure Notices Decline 12% as Lenders Change Policies” (1-24-12)
“Foreclosure notices in California, the state with the highest number of distressed mortgages, fell in the fourth quarter as the housing market improved and loan servicers changed their policies, DataQuick said.”
DS News - “Additional Servicers May Join in AG Settlement” (1-24-12)
“The settlement negotiations between the state attorneys general and the top five servicers have dragged on for more than a year now throughout frequent reports that a settlement is ‘close’ . Working out a deal that banks feel is fair and that attorneys general feel serves their states’ residents has been challenging at best.”
Hard Money Loan Closed
Los Angeles, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $100,000 on a 4 bedroom, 3 bathroom home appraised for $225,000.
California Real Estate Investor Events:
Bruce Norris of The Norris Group will be at the Investors Workshops and will be interviewing Shawn Watkins on January 25, 2012.
Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.
Looking Back:
The CBIA reported total building permits issued during 2010 increased 23% from 2009. Statistics from Trulia showed that owning a home was cheaper than renting one in 72% of the largest cities in the United States. Commercial property values rose 0.6% in November 2010, according to Moody’s.
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.
