Today’s News Synopsis:
The prices of homes increased in April for the first time in eight months. However, for the whole year prices actually decreased 4% in 20 cities from April 2010 to April 2011. DS News reported that reports of mortgage fraud increased 31% in the first quarter. The passage of Senate Bill 510 is being pushed, which would increase the amount of legal work required for appointing a branch manager for a large real estate company.
In The News:
The Wall Street Journal – “Home Prices Notch Spring Bounce” (6-28-11)
“U.S. home prices rose in April from a month earlier, the first increase in eight months, though much of the improvement reflected the start of the spring-summer home buying season, according to the S&P Case-Shiller home-price indexes.”
Bloomberg – “Home Prices in 20 U.S. Cities Fell 4% in April” (6-28-11)
“Home prices decreased in the year ended April by the most in 17 months, showing the housing market remains an obstacle for the U.S. recovery.”
DS News – “One in 10 NYC Mortgages Seriously Delinquent” (6-28-11)
“One in 10 residential mortgages in New York City is seriously delinquent – meaning over 90 days delinquent or in foreclosure – according to an analysis of the regional housing market released this week by the Federal Reserve Bank of New York.”
“A drop in some mortgage loan limits for the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and the Federal Housing Administration scheduled to occur on Oct. 1 will reduce housing demand and place downward pressure on home prices in major housing markets, according to a new study from the Economics and Housing Policy Group at the National Association of Home Builders (NAHB).”
DS News – “Mortgage Fraud SARs Jump 31% as Investors Demand Loan Buybacks” (6-28-11)
“A total of 25,485 suspicious activity reports (SARs) involving alleged mortgage fraud were submitted to the Financial Crimes Enforcement Network (FinCEN) during the first quarter of this year.”
Housing Wire – “QE3 advocate Paul Krugman sits down with HousingWire” (6-28-11)
“Princeton economist and New York Times columnist Paul Krugman recently advocated for a third round of economic stimulus.”
Realty Times – “California Bill Would Increase the Accountability of Branch Office Managers” (6-28-11)
“There is currently a bill working its way through the California legislature that, if passed, will significantly increase the legal liability of individuals who are branch office managers for large real estate companies.”
CNN Money – “Fed set to buy $300B more Treasuries” (6-28-11)
“QE2 is just about done. But the Federal Reserve will still be buying massive amounts of long-term Treasuries. In fact, the Fed’s purchases over the next year will likely be at least $300 billion. That’s half the size of QE2 — even if QE3 never takes place.”
RisMedia – “New HUD Study: $26 Billion in Major Repairs Needed in Public Housing” (6-28-11)
“The U.S. Department of Housing and Urban Development recently released a study that finds the nation’s 1.2 million public housing units need an estimated $25.6 billion for large scale repairs.”
Housing Wire – “Fannie Mae to retroactively charge mortgage servicers for foreclosure delays” (6-28-11)
“Fannie Mae will retroactively charge mortgage servicers for failing to process severely aged loans, according to state timelines.”
Statistics from the Federal Reserve showed the median borrower who ‘strategically’ defaulted didn’t walk away from the mortgage until the amount owed exceeded the value of the home by 62%. McGraw-Hill Construction reported new construction starts increased 3% in April 2010. According to CoreLogic, more than 11 million borrowers owed more on their mortgage than it was worth. Experian statistics showed that 19 percent of all defaults in 2009 were strategic.
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