The Norris Group Blog

Today’s News Synopsis:

Modifications to foreclosures on Freddie Mac and Fannie Mae mortgages increased more than twice as much in the third quarter, according to Housing Wire.  Shaun Donovan said he and Secretary of Energy Steven Chu are discussing plans of creating an energy scoring system for houses.  Standard and Poor’s reported levels of securities backed by mortgages are the slowest they have been since 2007, both for commercial and residential property.  NAHB stated that the driving force for the housing market are actually the smaller businesses.  CBIA announced that construction on new homes increased 21% this month.

In The News:

Realty Times - “Curb Appeal Projects Remain Cost-Effective” (12-21-10)

“Buyers are hit hard by first impressions, and sellers take advantage of this fact, aiming to amp up their curb appeal.  This is, after all, where they get the most bang for their buck. According to the latest Remodeling Cost vs. Value Report, the National Association of REALTORS® (NAR) reports that “nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects.” These exterior projects are outperforming their remodeling counterparts.”

Housing Wire - “Fannie Mae, Freddie Mac foreclosures double modifications in 3Q” (12-21-10)

“Servicers started 339,000 foreclosures on Fannie Mae and Freddie Mac mortgages in the third quarter, more than double the 146,507 modifications completed, according to data from the Federal Housing Finance Agency.”

Inman - “‘Energy Score’ Worries for America’s Houses?” (12-21-10)

“Most houses come with no stickers, no ratings and no disclosures about how big a fuel guzzler the property is, and how that might compare with other houses on a rating scale.Donovan said he and Secretary of Energy Steven Chu were already working on plans to create what he called “a simple scoring system for housing” that could be reduced to grade levels or numerical scales — say one to 100 or A to F, like back in high school — that would be absolutely clear, authoritative and available to anybody considering buying a house.”

Realty Times - “2010 NAR Profile Can Help Agents to Find Buyers and Sellers” (12-21-10)

“We have noted that The 2010 National Association of Realtors® Profile of Home Buyers and Sellers contains valuable information for sellers and their agents as to how buyers find the homes that they ultimately buy. The profile also contains valuable and interesting information as to how both buyers and sellers find the agents that they ultimately use.”

Housing Wire – “Structured finance downgrades, defaults slow as 2010 ends: S&P” (12-21-10)

“November downgrades and defaults on residential and commercial mortgage-backed securities slowed to levels not seen since 2007, according to a report from Standard & Poor’s.”

San Francisco Chronicle - “Wells Fargo Agrees to Modify California ARM loans” (12-21-10)

“Wells Fargo Bank has agreed to make $2 billion in loan modifications for California homeowners with risky pay-option, adjustable-rate mortgages that Wells purchased from other banks, and to pay $32 million to 15,000 borrowers who had similar loans and lost their homes to foreclosure, according to an agreement with the California attorney general’s office.”

NAHB - “NAHB Report Finds Small Builders are the Mainstay of the Nation’s Housing Industry” (12-21-10)

“Small home builders are the mainstay of the nation’s housing industry, including a sizable number of self-employed mom-and-pop operations, according to a new study by economists at the
National Association of Home Builders.”

CBIA - “New-Home Construction in California Up 21 Percent in November, CBIA Announces” (12-21-10)

“California homebuilders pulled permits for 21 percent more homes in November when compared to the same month a year ago, but it wont be enough to keep the state from seeing the second-lowest number of housing starts on record, the California Building Industry Association announced today.”

The Orange County Register - “South Coast Homebuying Up 4% Over Year” (12-21-10)

“For calendar month November – DataQuick’s freshest stats — South Coast homebuying patterns showed:

• 142 homes were bought in the region in the period – +4% vs. a year ago.
• Countywide, it was -11% vs. a year earlier.
• The sales-weighted average of median price changes in South Coast ZIPs was -38% vs. a year ago.
• Price change in all Orange County beach towns ran +9% vs. a year ago.
• Countywide, it was +1% vs. a year earlier.”

Mercury News - “Clean House: Tips for Paying Down your Mortgage” (12-21-10)

“Don’t let your biggest debt run your life. There are ways to trim your monthly costs that will move you closer to a mortgage-free retirement.”

Fortune- “New Jersey warns foreclsoure fiends” (12-21-10)

“The state’s Supreme Court ordered the biggest lenders to prove they are acting lawfully in processing foreclosures.”

Looking Back:

PMI Insurance Group predicted that 2010 would produce a moderate increase in economic production. According to John Burns Real Estate Consulting, real estate investor activity exceeded 2005 levels. Moody’s reported that commercial real estate values had decreased by 36 percent from 2008. A total of 140 banks were seized in 2009.

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 200 podcasts in our free investor radio archive.