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The Norris Group Real Estate News Roundup 6/15/10

Tuesday, June 15th, 2010

Today’s News Synopsis:

MDA DataQuick reports A total of 22,270 new and resale houses and condos closed escrow in Southern California last month. According to the NAHB, builder confidence in the market for newly built, single-family decreased this month. Having a home with a view is on the top 10 list of preferences for 44.5 percent of men. Morgan Stanley’s research has lead the company to conclude that low mortgage rates will prevent a double dip in prices.

In The News:

DQNews - “Southland median sale price back over $300K; sales at 4-year high” (6-15-10)

“A total of 22,270 new and resale houses and condos closed escrow in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 9.7 percent from 20,299 in April, and up 7.2 percent from 20,775 in May 2009, according to MDA DataQuick of San Diego.”

NAHB - “Builder Confidence Declines in June” (6-15-10)

“Snapping a string of two consecutive monthly gains, builder confidence in the market for newly built, single-family homes fell back to February levels, before the beginning of the home buyer tax credit-related surge, according to results of the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI dropped five points to 17 in June.”

Los Angeles Times – “California’s economy to see sluggish recovery this year, UCLA economists say” (6-15-10)

“California stands to gain some jobs this year but recovery will be sluggish, and the state’s inland areas will bear the brunt of the continuing economic pain, according to a forecast scheduled to be released Tuesday by UCLA’s Anderson School of Business.”

Inman - “Top 10 sought-after home features” (6-15-10)

“Men and women’s top 10 preferences were largely the same with two exceptions: having a view made it onto the men’s list (and not the women’s list), with 44.5 percent of men saying it was a high priority; and wood floors made it onto the women’s list (and not the men’s), with 40.9 percent of women ranking them highly.”

Housing Wire – “Low Mortgage Rates Help Block Double-Dip Threat: Morgan Stanley” (6-15-10)

“The US economics team at financial firm Morgan Stanley (MS: 25.96 +2.49%) says in their latest research report that recent gains in the nation’s economy point to a remote chance of a so-called double dip — where recent upticks in economic activity are only temporary — citing low mortgage rates as a key driver in drawing this conclusion.”

Housing Wire – “Shadow Inventory to Take 3 Years to Clear: Standard & Poor’s” (6-15-10)

“The shadow inventory of distressed properties that back residential mortgage-backed securities will take nearly three years to clear at the current sales rate, according to the credit rating agency, Standard & Poor’s (S&P). S&P puts the total principal balance of the shadow inventory at $480bn or 30% of the entire non-agency market.”

Housing Wire – “BofA Permanent HAMP Modifications Passes 70,000 in May” (6-15-10)

“Bank of America (BAC: 15.76 +2.27%) pushed its total number of permanent modifications under the Home Affordable Modification Program (HAMP) to roughly 70,000 in May, up from 56,400 in April.”

Housing Wire – “MGIC Writes $800m in Monthly Mortgage Insurance, Denies Hundreds of Claims” (6-15-10)

“Mortgage Guaranty Insurance Corp. (MGIC), the principal subsidiary of MGIC Investment Corp. (MTG: 9.12 +8.19%), wrote $800m of primary new mortgage insurance in May, according to monthly operations data. The company denied or rescinded — or canceled the policy relating to — almost 1,000 mortgage insurance claims in the month, helping to further reduce the number of delinquencies on its books, according to a press release.”

Housing Wire – “More Funds Repaid to TARP than Outstanding in May: Treasury” (6-15-10)

“Treasury noted in the April update on TARP that it expects to spend less than $550bn of the $700bn authorized for the program, and expects to recover all but $117bn — an estimate that was subsequently revised to $105.4bn. Of $384bn in total TARP disbursements, more than half — or $194bn — was repaid through May, leaving only $190bn outstanding. The sale of 1.5bn shares of Citigroup (C: 3.975 +2.45%) pushed the repayments past outstandings for the first time in TARP’s history.”

Housing Wire – “In These Thin Times, House Sizes Also Begin to Shrink” (6-15-10)

“In 2007, the average single-family home in the United States peaked at 2,521 square feet. That number did not vary greatly into 2008. However, according to a 2009 report from the Census Bureau, it’s now at an average of 2,438 square feet.”

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.

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The Norris Group Real Estate News Roundup 5/21/10

Friday, May 21st, 2010

Today’s News Synopsis:

The Employment Development Department reports California unemployment remained at 12.6 percent from March. According to MDA DataQuick, 37,481 new and resale houses and condos were sold statewide last month. Nearly 75 percent of the 1.2 million homeowners who started the loan modification program in March 2009 have dropped out. The Senate voted 59-39 to pass the financial services bill formerly known as S. 3217, the Restoring American Financial Stability Act.

In The News:

Los Angeles Times – “California employers keep adding jobs” (5-21-10)

“California’s unemployment rate remained unchanged from March, at 12.6%, although that’s because more workers – about 68,000 — rejoined the labor force to look for work in April. The Employment Development Department said Friday that the state has added jobs for four straight months, although February’s job figures were revised from a 20,400 job loss to a 2,800 job gain.”

DQNews - “California Statewide April Home Sales” (5-21-10)

“An estimated 37,481 new and resale houses and condos were sold statewide last month. That was up 0.5 percent from 37,295 in March, and down 1.3 percent from 37,967 for April 2009. California sales for the month of April have varied from a low of 27,625 in 1995 to a peak of 71,638 in 2004, while the average is 44,758. MDA DataQuick’s statistics go back to 1988.”

CAR - “C.A.R. calls for swift passage of SB 1178″ (5-20-10)

“The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is calling on California state senators to vote ‘yes’ and approve SB 1178 (D-Corbett), which will extend anti-deficiency protection for consumers who have refinanced their original mortgage loans and now are facing foreclosure. C.A.R. is the sponsor of the legislation.”

The Press Enterprise – “Loan-modification dropouts rise” (5-20-10)

“The Treasury Department’s report Monday was the latest evidence of problems in the administration’s $75 billion program. While officials insist the program is helping the housing market turn around, critics say it is merely delaying an inevitable surge in foreclosures. More than 299,000 homeowners had received permanent loan modifications as of last month, Treasury said. That’s about 25 percent of the 1.2 million who started the program since its March 2009 launch. They are paying, on average, $516 less each month.”

Mortgage Bankers Association – “MBA Reacts to Passage of Financial Regulatory Reform” (5-21-10)

“MBA has long supported a more efficient regulatory regime for the financial services industry, and passage of the bill is another important milestone.   However, the bill, as we view it, still has flaws that will negatively impact borrowers and the real estate markets. The next step will be to reconcile the differences between the House bill and the Senate bill.  While there are a couple of ways this could happen, MBA believes the American people would be best served by Congress convening a formal conference committee. Of particular importance to us is ensuring that the final language on risk retention does not discourage prudent, responsible lending.  If not, we risk doing long-term damage to our single-family, multifamily and commercial real estate markets.”

Associated Press – “Fitch finds Calif. at both extremes in mortgages” (5-12-10)

“California has the best-performing U.S. region in mortgage performance as well as some of the worst, according to a study by Fitch Ratings. Results of the ratings agency’s study of all securitized non-agency California mortgage loans were released Wednesday. Among the findings, it said the Bay Area region of San Francisco, San Mateo and Redwood City has a 60-day mortgage delinquency rate of just 4 percent. That was No. 1 among the 382 metropolitan statistical areas tracked by Fitch.”

National Underwriter – “S. 3217 Becomes H.R. 4173, Passes In Senate” (5-21-10)

“Members of the Senate have voted 59-39 to pass the financial services bill formerly known as S. 3217, the Restoring American Financial Stability Act. The bill, now known as H.R. 4173, the Wall Street Reform and Consumer Protection Act — the same name and bill number given to the financial services bill that the House passed in December 2009 — needed to attract a majority of the votes cast to pass.”

Housing Wire – “Treasury Reduces TARP Cost by $11.4bn” (5-21-10)

“The Treasury Department cut the projected cost of the Troubled Asset Relief Program (TARP) by $11.4bn to a total of $105.4bn. Congress authorized TARP under the Emergency Economic Stabilization Act of 2008 to provide some stability to the ailing financial industry. Last August, the Obama Administration estimated the cost of TARP to be $341bn. The Making Home Affordable (MHA) program, which includes the Home Affordable Modification Program (HAMP) and the Home Affordable Foreclosure Alternatives (HAFA) program operates under TARP. In March 2010, the Treasury told Congress the cost of HAMP would be $22bn compared to the $75bn initially planned.”

Housing Wire – “Increase in Architectural Billings Sets Stage for Increased Construction” (5-21-10)

“The American Institute of Architects (AIA) reported that its April Architectural Billings Index (ABI) rating increased 5.2% to 48.5, up from 46.1 in March. While the results means more firms saw billings decrease than increase, the rate of firms that saw decreases lessened in April.”

Housing Wire – “Shadow Inventory Could Reach 5.5m by 2011: Report” (5-21-10)

“There are 2.5m households going through the foreclosure process right now and the number of homes with at least one missed mortgage payment sits at 5.4m, according to Capital Economics. And even though the economic recovery is gaining momentum, more households are still falling behind on their mortgage. By the end of 2011, an additional 3m homes will be in the foreclosure process, making the shadow inventory of potential REO properties at 5.5m. Some of these homes will inevitably avoid a foreclosure. But for many, the foreclosure process may be the only option and, eventually, those homes will get sold in the REO process.”

Housing Wire – “Special Servicers Take On $82bn in CMBS Loans through Q110: Fitch” (5-21-10)

“The amount of loans in commercial mortgage-backed securities (CMBS) in need of special servicing totaled $81.7bn in Q110, up from $74bn at the end of 2009, according to Fitch Ratings. Special servicers have unique processes in place for unusual loans, usually ones on the verge of default. According to Fitch, these companies are still adding staff to meet the increasing demand. The analytics firm, Trepp, found the delinquency rate in CMBS reached 8% in April – a new record.”

Looking Back:

One year ago, Bay Area home sales posted a year-over-year gain for the eighth consecutive months. Freddie Mac reported the average rate for a 30-year loan fell to 4.82 percent. MDA DataQuick reported 2.5% of Orange County home purchases financed in April had variable-rate mortgages of some sort. Forty percent of potential homeowners said they would expect to pay at least 50 percent less for a foreclosed home.

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.

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The Norris Group Real Estate News Roundup 4/29/10

Thursday, April 29th, 2010

Today’s News Synopsis:

Freddie Mac claims the average rate for 30-year fixed-rate mortgages was 5.06 percent this week. Zillow estimates that home inventory will increase in the near future. The California Housing Finance Agency is proposing a plan to spend $699.6m from the Hardest Hit Fund. According to Morgan Stanley, about 12 percent of all mortgage defaults in February.

In The News:

Sign On San Diego – “Mortgage rates stay above 5 pct” (4-29-10)

“The mortgage financier Freddie Mac said Thursday that the average rate for 30-year fixed-rate mortgages was 5.06 percent this week, down a tick from 5.07 percent last week. A year ago, Freddie Mac says 30-year fixed rate mortgages averaged 4.84 percent.”

Inman - “Watch for inventory rise despite tax credit’s sales boost” (4-29-10)

“Although the most recent numbers out for home sales — both new and existing — showed a surge, inventory may yet continue to rise past the summer, according to an analysis by property search and valuation site Zillow.”

Housing Wire – “California Releases $699m Hardest Hit Fund Proposal” (4-29-10)

“The California Housing Finance Agency (CalHFA) is the latest to release its proposal sent to the Treasury Department, laying out a plan to spend $699.6m from the Hardest Hit Fund. In March, the Treasury cleared HFAs of five states where house prices dropped 20% from the peak to submit proposals to use the funds from the Troubled Asset Relief Program (TARP). Florida, Michigan and Arizona were the first to release their proposals, while Nevada has still not released its plan to spend $102.8m from the fund.”

Bloomberg - “‘Strategic’ Mortgage Defaults Jump to 12% of Total” (4-29-10)

“Decisions by U.S. homeowners to walk away from mortgages they can afford account for an increasing share of defaults, according to Morgan Stanley. About 12 percent of all mortgage defaults in February were ‘strategic,’ up from 4 percent in mid-2007, New York-based Morgan Stanley analysts led by Vishwanath Tirupattur wrote in a report today. Borrowers are more likely to stop paying their mortgages the higher their credit scores and the larger their loans, the analysts said.”

Inman - “5 ways to give Gen X, Gen Y what they want” (4-29-10)

“Today’s buyers and sellers are stalking agents online for as much as 18 months before they will feel comfortable enough to do business with an agent. The question is: Once potential clients find you, how can you keep them engaged long enough that they will do business with you, especially when you don’t know who they are?”

Inman - “Figuring out new RESPA rules: lenders report delays, confusion” (4-29-10)

“Many lenders haven’t yet fully implemented technology to comply with new rules that took effect this year under the Real Estate Settlement Procedures Act (RESPA), and most are taking longer to provide disclosures when borrowers submit loan applications, according to a survey by Equifax. The Equifax survey of 105 lenders who use its employment and income verification service found 79 percent are taking longer to take an application and provide disclosures to borrowers since the RESPA rule change went into effect Jan. 1. About 72 percent of lenders said borrowers were confused about the multiple disclosure documents they receive.”

Realty Times – “30-yr Fixed Mortgages Available at 4.875%, Rates Stable” (4-29-10)

“FreeRateUpdate.com research of wholesale lenders’ rate sheets shows conventional 30-yr fixed mortgages available today at 4.875% to well-qualified consumers paying a standard origination fee of .07 to 1 point. 15-year fixed mortgages remain available at 4.25, and the 5/1 ARM is available at 3.625%.”

Realty Times – “Real Estate Outlook: Signs of Recovery” (4-29-10)

“Fannie Mae’s economics department issued its forecast for the balance of the year last week – and the tone was moderately optimistic. Fannie projects national economic growth – as measured by the gross domestic product or GDP – to gain about 3.1 percent this year. That won’t be enough to make a major dent in the jobless rate, said the economists, but it should reflect a slow but steady improvement in key employment sectors, including manufacturing.”

Looking Back:

The U.S. Treasury Department made plans to spend $50 billion to pay off mortgage investors and reduce monthly payments for millions of borrowers. A CNN poll showed that Americans were becoming significantly more optimistic about the future of the economy. California regulators authorized 600 brokers to negotiate loan modifications. Gross domestic product dropped to a 6.1 percent rate in the first quarter of 2009.

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The Norris Group Real Estate News Roundup 4/27/10

Tuesday, April 27th, 2010

Today’s News Synopsis:

The S&P Index shows home prices increased in February. Speculators believe the Federal Reserve will keep interest rates at the current low. The LexisNexis Mortgage Asset Research Institute reports that fraud increased by 7 percent last year. According to the FHFA, the average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09% this month.

In The News:

Business Week – “Home price index shows 1st annual gain in 3 years” (4-27-10)

“Home prices in February posted their first annual increase since the end of 2006, pumped up by a temporary tax credits for homebuyers. The Standard & Poor’s/Case-Shiller home price index released Tuesday eked out a 0.6 percent gain, half the increase analysts had expected. And on a more cautionary note, 11 of the 20 cities tracked by the index showed declines from February last year.”

The Press Enterprise – “Fed expected to keep rates at record lows” (4-27-10)

“Confidence is growing that the economic rebound will strengthen. And to make sure it does, the Federal Reserve is considered certain to hold interest rates at record lows when it meets this week. ”

San Francisco Chronicle – “Mortgage fraud incidents rise 7 pct last year” (4-27-10)

“Incidents of residential mortgage fraud increased last year, a sign that scammers are still targeting the industry despite more diligent efforts to find and report such activity. The number of mortgage fraud reports among loans made in 2009 grew 7 percent, a smaller increase than the 26 percent jump seen the previous year, according to a study released Monday by the LexisNexis Mortgage Asset Research Institute.”

Housing Wire – “State HFAs Submit Proposals to Spend $1.5bn Hardest Hit Fund” (4-27-10)

“Three of the five state Housing Finance Agencies (HFAs) receiving $1.5bn from the Treasury Department through the Hardest Hit Fund released proposals on how they would spend the money. In March, the Treasury cleared the HFAs of states where house prices dropped 20% from the peak to submit proposals to use the funds from the Troubled Asset Relief Program (TARP).”

Housing Wire – “FHFA Sees Interest Rates Dip, Hover Around 5% in March” (4-27-10)

“The average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09%, down from 5.13% one month ago. The average rate for a 15-year FRM of $417,000 or less was 4.57%, down from 4.65%. The FHFA measured interest rates on loans that closed between March 25 and 31. Since the rate is typically determined 30 to 45 days prior to closing, the report depicts market conditions prevailing in mid- to late-February, the FHFA said.”

Housing Wire – “Fannie Extends REO Discount Deadline” (4-27-10)

“Fannie Mae (FNM: 1.21 -3.20%) extended its seller assistance incentive on all of its HomePath properties this week. In February, Fannie began providing a 3.5% discount to buyers of its REO properties listed as part of its HomePath division. The discount can be used for closing cost assistance or the buyer’s choice of appliances.”

Housing Wire – “Goldman’s Tourre Denies Misleading Investors in Subprime RMBS CDO” (4-27-10)

“An executive at embattled Goldman Sachs (GS: 153.04 +0.66%) denied before a Senate panel today that he misled investors in a synthetic collateralized debt obligation (CDO) tied to the performance of subprime residential mortgage-backed securities (RMBS). The Securities and Exchange Commission (SEC) is charging investment bank Goldman and the executive director of its structured products group trading, Fabrice Tourre, for allegedly making misleading statements about the CDO transaction, ABACUS 2007-AC1.”

Bloomberg - “‘Tourists’ May Leave Real Estate as Rates Rise, Sternlicht Says” (4-27-10)

“If interest rates head higher, ‘you will see a pause that will take a lot of capital out,’ he said. Corporate bonds may benefit, according to Sternlicht. A rebound in the real estate market is being hampered by weak demand and commercial-mortgage-backed financing that declined 95 percent last year from its record level in 2007. Vacancies in the first quarter rose to the highest level since at least 2000 at the nation’s biggest malls, and climbed to a 16-year peak at office buildings, research firm Reis Inc. said earlier this month. “

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The Norris Group Real Estate News Roundup 4/20/10

Tuesday, April 20th, 2010

Today’s News Synopsis:

According to MDA DataQuick, 81,054 Notices of Default  were recorded at county recorder offices during the January-to-March period in California . Marcus & Millichap Real Estate Investment Services claims that the gap between monthly rents and mortgage payments is at its lowest level in almost 20 years, making it easier to rent. Cushman & Wakefield estimates the commercial real estate market will take the longest to recover. HAMP completed 230,000 permanent modifications over 12 months.

In The News:

DQNews - “California Foreclosure Activity Declines Again” (4-20-10)

“A total of 81,054 Notices of Default (“NODs”) were recorded at county recorder offices during the January-to-March period. That was down 4.2 percent from 84,568 for the prior quarter, and down 40.2 percent from 135,431 in first-quarter 2009, according to San Diego-based MDA DataQuick.”

Mercury News – “New Obama mortgage plan at risk from fraud, report says” (4-20-10)

“Recent changes to the Obama administration’s mortgage assistance program may make it more vulnerable to fraud, a government watchdog says. The changes, announced last month, are intended to make it easier for struggling homeowners to avoid foreclosure. But the administration hasn’t done enough to warn the public about fraud and hasn’t included sufficient safeguards to prevent abuse, said the special inspector general for the Troubled Asset Relief Program, or TARP.”

Daily News – “Should you buy or rent a home? Cost gap narrows” (4-20-10)

“Thinking of buying a home? Consider this: The gap between monthly rents and mortgage payments is at its lowest level in almost 20 years. In some markets, the difference can be less than $100, according to a national study conducted for The Associated Press by Marcus & Millichap Real Estate Investment Services.”

Housing Wire – “Regulators Say Lehman Failure Makes Case for Financial Reform” (4-20-10)

“Driven to bankruptcy by massive downgrades of its failed subprime mortgage-related assets, now-defunct Lehman Brothers presents several lessons for lawmakers writing the policy response to ongoing financial fallout, expert witnesses told the House Financial Services Committee today. Sen. Ed Perlmutter (D-Colo.) cited a recent report on the causes of the Lehman bankruptcy, which found regulators supposedly knew of accounting gimmicks that allowed the firm the liquidity freedom to take on increasingly risky investments, but did not enforce corrective action.”

Housing Wire – “C&W: Commercial Real Estate Recovery Uneven Across US” (4-20-10)

“The national real estate market is in better shape than analysts anticipated given the largest employment declines in more than 70 years, but regional markets with the highest job losses, and the related overabundance of commercial properties vacant as businesses fail, will take longer to dig out of the recession, according to a report from Cushman & Wakefield (C&W). C&W, a real estate advising firm, said in its Economic Pulse report, that the recession did not hit all real estate markets equally.”

Housing Wire – “Financial Services Authority Begins Investigation of Goldman Sachs” (4-20-10)

“The Financial Services Authority (FSA), the market watchdog in the UK, will begin a formal enforcement investigation into Goldman Sachs (GS: 159.98 -2.05%) in the wake of the recent action by the Securities and Exchange Commission (SEC). Last week, the SEC charged Goldman for allegedly defrauding investors in a financial product tied to subprime mortgages. The SEC alleges Goldman and Fabrice Tourre, a vice president in the firm, misled and even omitted key facts about a synthetic collateralized debt obligation (CDO), ABACUS 2007-AC1.”

Housing Wire – “TARP Watchdog Says HAMP Changes Could Impede Modifications” (4-20-10)

“While foreclosures and bank repossessions rose in Q110 above year-ago levels — 16% and 35%, respectively — HAMP results in ‘very little progress’ so far, SIGTARP said, with only 230,000 permanent modifications completed over 12 months of operation (illustrated below). This represents only 8.2% of the foreclosures initiated in 2009, and fewer than only the most recent quarter’s bank repossessions.”

Bloomberg - “U.S. REITs May Raise More Than $25 Billion in 2010, NAREIT Says” (4-20-10)

“Real estate investment trusts in the U.S. may exceed the $25 billion they raised last year in share sales as an economic recovery boosts investor confidence, according to the industry’s main lobbying group. The money raised in the stock market last year principally went toward improving balance sheets after companies became too highly leveraged, said Michael Grupe, executive vice president of research at the National Association of Real Estate Investment Trusts. REITs will seek funds to acquire properties this year, he said.”

Orange County Register – “Laguna Beach homes taking 32% less time to sell” (4-20-10)

“The community’s share of its new deals in escrow involving distressed properties — foreclosures or short sales — is 8% or -21.95 percentage points vs. countrywide share. Note that this community has 1.2% of all the deals in escrow countywide — and 1.1% of all distressed deals in the works. Meanwhile, the city of Laguna Beach has 4.0% of the entire supply of resale residences that are listed for sale in Orange County.”

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The Norris Group Real Estate News Roundup 4/7/10

Wednesday, April 7th, 2010

Today’s News Synopsis:

According to the MBA, 1.2 million households were lost from 2005 to 2008. Greenspan defended the fed’s lack of oversight in the subprime market claiming that consumer protection was a high priority at the time. A Fannie Mae survey shows 61 percent of homeowners and renters say the economy is on the wrong track. Fitch reports subprime RMBS delinquencies fell to 46.3% in March.

In The News:

Mortgage Bankers Association – “Wells Fargo Was Top U.S. Commercial/Multifamily Originator in 2009 According to MBA” (4-7-10)

“Wells Fargo Bank was the top commercial/multifamily originator in 2009, according to a set of listings released by the Mortgage Bankers Association (MBA). Other originators in the top 10 include PNC Real Estate; Deutsche Bank Commercial Real Estate; CBRE Capital Markets, Inc.; HFF L.P.; Prudential Mortgage Capital Company; Meridian Capital Group; MetLife; Northmarq Capital LLC and Capmark Financial Group Inc.”

Mortgage Bankers Association – “MBA: An Estimated 1.2 Million Households Were Lost During Recession” (4-7-10)

“1.2 million households were lost from 2005 to 2008, despite the population increase of 3.4 million in the study area, as Americans experienced one of the deepest recessions in decades, according to a study released today by the Mortgage Bankers Association (MBA). This decline in households is likely what contributed significantly to the excess supply of apartments and single family homes on the market.”

Mortgage Bankers Association – “Mortgage Refinance Applications Decrease in Latest MBA Weekly Survey” (4-7-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 2, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 11.0 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 10.5 percent compared with the previous week.”

Los Angeles Times – “Greenspan defends Fed’s handling of subprime mortgage market” (4-7-10)

“While admitting some mistakes, Former Federal Reserve Chairman Alan Greenspan on Wednesday defended the central bank’s much-criticized oversight of the subprime mortgage market, arguing that consumer protection was an important priority and that it did not make sense to outlaw all such loans. Greenspan also warned the federal commission examining the origins of the financial crisis that government regulators couldn’t prevent crises, arguing that ‘fallible human regulators’ had a ‘woeful record’ of predicting the next market pitfalls. The best prevention would come from increasing federal requirements on financial institutions to hold more capital and collateral to carry them through crises.”

Inman - “Survey: Homeownership to get tougher” (4-7-10)

“About 61 percent of homeowners and renters say the economy is on the wrong track, according to the results of a housing survey conducted for Fannie Mae, and about 60 percent of respondents said it is more difficult for them to secure a home loan than for their parents’ generation. An earlier survey, conducted in December 2003, found that 43 percent of respondents believed that the economy was on the wrong track at that time, and 49 percent said it was more difficult to secure a loan at that time than it was in their parents’ generation.”

Housing Wire – “Goldman Sachs Denies Betting Against Clients on RMBS Investments” (4-7-10)

“Subprime RMBS performance ended its four-year free fall this month, and Goldman Sachs (GS: 176.36 +2.00%) is denying it made billions betting against those investments and its clients. In 2009, Goldman generated a net revenue of $45.17bn, up from the $22.2bn gain in 2008 and back to the $45.9bn level in 2007, according to is 2009 annual report. The gains came even as Goldman repaid the $10bn bailout from the Troubled Asset Relief Program (TARP) Capital Purchase Program in June 2009.”

Housing Wire – “Former Lender Tells Congressional Committee: Lax Underwriting Fueled Subprime Mortgage Crisis” (4-7-10)

“As he testified today to the Financial Crisis Inquiry Commission (FCIC), the fragmented subprime mortgage market began loosening underwriting standards to such an extent that eventually a letter from a borrower’s mother sufficed as proof of rental history. Lax underwriting and ineffective risk management led to the current mortgage crisis, he said. He noted that, if a lender offers a high-risk product and profit margins continue to drop, one of two things must happen: The lender either increases interest rates or tightens underwriting guidelines to compensate for the reduced margin and subsequent risk.”

Housing Wire – “Subprime RMBS Delinquencies Fall for First Time in Four Years: Fitch” (4-7-10)

“According to the credit rating agency Fitch, subprime RMBS delinquencies fell to 46.3% in March from 46.9% in February, the first decline in nearly four years. However, it did stay above the 39.8% level of a year ago. Subprime delinquencies rose for 44 straight months from its 6.2% low-point in June 2006. Vincent Barberio, managing director at Fitch, warned against calling an end to the woes.”

Bloomberg - “Trulia Adds Rental Listings Following Drop in U.S. Home Values” (4-7-10)

“Trulia Inc., the San Francisco-based provider of home-sales information, said it will begin listing U.S. apartment rentals as high unemployment and a rise in foreclosures lead many people to lease rather than buy. Trulia today will add more than 1 million rentals to its Web site alongside the 3.5 million homes for sale already listed, the company said in a statement. Users will be able to compare the costs of renting and buying, as well as rate neighborhoods on parking, cleanliness, public transportation and safety, Trulia said.”

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The Norris Group Real Estate News Roundup 2/25/10

Thursday, February 25th, 2010

Today’s News Synopsis:

A CAR survey shows that 67 percent of home sellers chose to sell because of their inability to pay mortgage debt. The FHFA reports that U.S. home prices decreased by 1.2 percent in the fourth quarter. A survey shows that agents and brokers are growing increasingly pessimistic of the future of real estate. According to FHFA, the rate for 30-year FRMs increased to 5.1 percent in January.

In The News:

San Francisco Chronicle – “Newsom plan would defer up-front developer fees” (2-25-10)

“The mayor’s administration says the package of legislation, tentatively set to go before the Board of Supervisors’ land use committee March 15, would cut up-front costs for developers, making it easier to get financing in this recession. Newsom said his proposals would speed up start times on four specific projects by as much as two years, including the second tower in the One Rincon Hill development. Work on the four projects could start in two months, he said.”

CAR - “C.A.R. releases ’2009-2010 Survey of California Home Sellers’” (2-25-10)

“Changes in family and employment status as well as adjustments to monthly mortgage obligations played significant roles in California’s homeowners’ decisions to sell their homes in 2009, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) ’2009-2010 Survey of California Home Sellers.’ According to the report, 67 percent of all sellers in California did so as a result of difficulties related to meeting their mortgage obligation.”

Bloomberg - “Home Prices Decline 1.2%, Smallest Drop in Two Years” (2-25-10)

“U.S. home prices fell 1.2 percent in the fourth quarter from a year earlier, the smallest loss in two years, as a federal tax credit for homebuyers boosted demand. Prices were down 0.1 percent from the third quarter, the Federal Housing Finance Agency said today in a report. The year- over-year drop was the smallest since a 1.1 percent decline in 2007’s fourth quarter, the Washington-based agency said.”

Inman - “Agents, brokers less rosy on future” (2-25-10)

“Short-term views for the next three to six months deteriorated 2.89 percent, to 5.71, while long-term views for the next 12 to 18 months fell 4.1 percent to 6.32. The survey pointed to expected interest rate hikes, the poor jobs market, and the imminent April 30 deadline (for a home sale to be under contract) for the federal homebuyer tax credit program as participants’ major concerns.”

Housing Wire – “FHFA Mortgage Rate Tracker Posts Increase in January” (2-25-10)

“The average interest rate on conventional 30-year, fixed-rate mortgage (FRM) with a principal of $417,000 or less was 5.1% in January, an increase from 5.05% in December, the FHFA said. The average interest rate on 15-year FRM of $417,000 or less stayed at 4.54% in January.”

Housing Wire – “Delinquent CMBS Triples as Spreads Stabilize” (2-25-10)

“Realpoint reviewed more than $797bn in CMBS pools for the January report. The firm calculated a 5.76% delinquency rate for the pools reviewed, up from 5.22% in December. The rate jumped by more than four times the rate in January 2009, when 1.2% of the reviewed loans fell delinquent. June 2007 held the lowest delinquency rate recorded by Realpoint, at 0.2%.”

Housing Wire – “Bankers Propose Mortgage Forebearance for Unemployed” (2-25-10)

“The program would give incentives to investors and servicers (through Treasury’s TARP) that place unemployed borrowers in a forbearance plan for up to 90 days — a period that can be renewed twice based on borrower’s financial circumstances. This plan would put a borrower in forbearance for up to nine months, at which time (or earlier, at re-employment status) eligibility for a HAMP trial can be determined.”

Bloomberg - “General Growth Is Biggest Real Estate Fight Since Equity Office” (2-25-10)

“The battle for General Growth Properties Inc., owner of more than 200 U.S. malls from Boston to Los Angeles, is turning into the biggest real estate fight since sale of Sam Zell’s Equity Office Properties Trust. Westfield Group, a Sydney-based property investor with stakes in 55 U.S. retail centers, signed an agreement letting it assess General Growth’s finances, a person familiar with the pact said yesterday. That may put Westfield in position to vie for the bankrupt company’s assets as part of a contest already embroiling Simon Property Group Inc. and Brookfield Asset Management Inc.”

Bloomberg - “Obama May Prohibit Home-Loan Foreclosures Without HAMP Review” (2-25-10)

“The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.”

Looking Back:

One year ago, existing home sales decreased by 5.3 percent. The MBA announced that mortgage loan application volume had decreased by 15 percent from the previous quarter. The Obama administration implemented a stress test of 19 banks. Bernanke claimed to be confident of the federal reserve’s ability to prevent inflation.

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The Norris Group Real Estate News Roundup 2/11/10

Thursday, February 11th, 2010

Today’s News Synopsis:

According to the NAR, home sales increased in 32 states from the 3rd quarter of 2009. Statistics from the CBIA show that the construction industry currently provides only one sixth of the jobs it provided in 2005. Some speculate that Fannie and Freddie’s purchasing of debt could get rid of all mortgage debt within a year. RealtyTrac reports that foreclosure filings increased by 15 percent from last year.

In The News:

NAR - “Fourth Quarter Existing-Home Sales Surge in Most States, Prices Up in More Areas” (2-11-10)

“Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases. Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate 1 of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.”

CBIA - “Study Shows Housing Industry is Vital to California’s Economic Recovery” (2-11-10)

“Preliminary numbers from the report found that new housing construction in California contributed $14.3 billion dollars to the state’s economy in 2009 and supported nearly 80,000 jobs, representing just a fraction of the $67.7 billion dollars and 487,000 jobs that the industry had contributed in 2005.  The report also found that every dollar spent on new housing construction in California generates another $0.8 in total economic activity and that each job created through residential construction supports an additional 1.2 jobs.”

Inman - “ZipRealty: Fewer sellers slash prices” (2-11-10)

“Fewer sellers cut their list prices for the fifth straight month in January, according to a report by real estate brokerage ZipRealty. The report covered 27 of 36 U.S. metropolitan areas in which the brokerage operates. The statistics in the monthly report reflect the brokerage’s multiple listing service data as of Jan. 4.”

Bloomberg - “Fannie, Freddie Loan Purchases May Spur ‘Wad of Cash’” (2-11-10)

“Fannie Mae and Freddie Mac’s plan to step up purchases of delinquent loans may boost prepayments on their securities to rates that in some cases would erase all of the debt within a year. Yields over government notes on some of their bonds fell to 17-year lows on speculation the move would lead to reinvestments in the mortgage market. ”

Bloomberg - “U.S. Foreclosure Filings Top 300,000 for 11th Month” (2-11-10)

” U.S. foreclosure filings rose 15 percent in January from a year earlier and exceeded 300,000 for the 11th consecutive month as modification programs failed to keep delinquent borrowers in their homes, RealtyTrac Inc. said. A total of 315,716 properties received a notice of default, auction or bank seizure last month, or one in 409 households, the Irvine, California-based seller of default data said today in a statement. Filings fell 10 percent from December.”

Bloomberg - “Mortgage Rates on 30-Year U.S. Loans Fall to 4.97%” (2-11-10)

“Mortgage rates in the U.S. fell for the fifth time in six weeks, making home purchases and refinancing more affordable. The rate for 30-year fixed U.S. home loans fell to 4.97 percent for the week ended today from 5.01 percent, mortgage finance company Freddie Mac said in a statement today. The average 15-year rate was 4.34 percent, according to the Mclean, Virginia-based company.”

Bloomberg - “TARP Watchdog Says Commercial Real Estate Loans Pose Danger” (2-11-10)

“Commercial real estate loans have the potential to go sour and wreck the U.S. economy unless regulators prepare now, according to a report today from a watchdog Congress created for the government’s financial bailout program. The report should be a ‘red flag’ that prompts regulators to increase preparations for staving off another banking crisis, said Elizabeth Warren, a Harvard law professor and chairman of the Congressional Oversight Panel of the Troubled Asset Relief Program. The panel was created in October 2008 to monitor the Treasury’s efforts to rescue the banking system from the worst financial crisis in decades. ”

Looking Back:

One year ago, the MBA reported that mortgage applications decreased by 44 percent from 2008. A budge proposal in California would have significantly increased income, sales, gas taxes, and car fees. 76 percent of all U.S. homes declined in value in 2008, but only 57 percent of homeowners recognized this decline.

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The Norris Group Real Estate News Roundup 2/3/10

Wednesday, February 3rd, 2010

Today’s News Synopsis:

According to the MBA, mortgage application volume increased by 21 percent on a seasonally adjusted basis from last week. Lender Processing Services reports that home delinquency rates increased to 10 percent from November. Inman and GMAC expect that job losses will increase in the real estate industry.

In The News:

Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (2-3-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 29, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased of 21.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 23.5 percent compared with the previous week.”

Housing Wire – “Mortgage Delinquencies Pass 10%: LPS” (2-3-10)

“Home-loan delinquency rates in the US reached 10% in December, up from the record-high 9.97% in November, according to Lender Processing Services (LPS: 39.93 +1.94%), which provides data on mortgage performance.”

Housing Wire – “PNC to Repay $7.6bn of TARP Funds” (2-3-10)

“The PNC Financial Services Group (PNC: 53.71 -1.72%) negotiated with regulators to repay $7.6bn of funds, nearly three-quarters of what it received in bailout money from the Treasury Department under the Troubled Asset Relief Program (TARP).”

Bloomberg - “GMAC Cuts More Than 500 Jobs in Mortgage, Auto Finance Units” (2-3-10)

“GMAC Inc., the auto and home lender controlled by the U.S. government, plans to cut about 554 jobs and close three offices as the firm tries to stanch loan losses.”

Inman - “Brokers boost tech spending, recruiting” (2-3-10)

“Real estate brokers are cutting office staff and reducing marketing and advertising expenses to survive the downturn, but most have still managed to beef up spending on technology and agent recruitment and training in the past year, according to a broker survey conducted by Inman News.”

Inman - “Homebuyers gain bargaining power” (2-3-10)

“Buyers nationwide haggled a median 2.7 percent, or $5,618, off the last listing price of homes sold in December, a slight increase from 2.6 percent, or $5,538, in November, and the first and only month-to-month increase in 2009. Bargaining power decreased significantly year-over-year, however. In December 2008, buyers were able to knock a median 4.5 percent, or $10,018, off the last listing price.”

Looking Back:

One year ago, NAR reported that pending home sales increased by 6.3 percent in December. MDA DataQuick claimed 24,436 California homes sold for a million dollars or more during the previous year. The CBIA predicted that 63,400 housing units would be produced in 2009. Zillow announced that the U.S. home market lost $3.3 trillion in value in one year.

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The Norris Group Real Estate News Roundup 2/1/10

Monday, February 1st, 2010

Today’s News Synopsis:

The MBA reported there is a $1.45 trillion balance of outstanding mortgages held by non-bank investors. SIGTARP predicted a second housing bubble. Fannie Mae’s mortgage delinquency rate increased to5.29% in November 2009. U.S. home construction spending decreased by 2.7 percent in December.

In The News:

Mortgage Bankers Association - “Only 13 Percent of Non-Bank Commercial/Multifamily Mortgage Debt to Mature in 2010; Seven Percent in 2011″ (2-1-10)

“The Mortgage Bankers Association (MBA) today released the results of its 2009 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The survey indicates that the volume of commercial and multifamily mortgage debt maturing in 2010 and 2011 is relatively low.  Of the $1.45 trillion balance of outstanding mortgages held by non-bank investors, only 13 percent of the total ($183.9 billion) will mature in 2010 and 7 percent ($99.8 billion) in 2011.  The survey also found that maturities vary considerably by the type of investor holding the loan.”

Mortgage Bankers Association – “Wells Fargo/Wachovia, PNC/Midland and Berkadia Lead National Rankings of Commercial/Multifamily Servicing Volumes” (2-1-10)

“The Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers as of the end of December 31, 2009.  On top of the list of firms is Wells Fargo/Wachovia Bank with $473.8 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $322.9 billion, Berkadia Commercial Mortgage with $217.9 billion, Bank of America Merrill Lynch with $131.7 billion, KeyBank Real Estate Capital with $128.5 billion, and GEMSA Loan Services LP with $102.3 billion.”

Housing Wire – “SIGTARP Warns of Second Housing Bubble” (2-1-10)

“The Special Inspector General for the Troubled Asset Relief Program (SIGTARP), which oversees the federal government’s economic recovery program, called for reform to prevent government bailouts in the future and warned of a government-induced second housing bubble.”

Housing Wire – “Officials Contend FHA is Going to be OK” (2-1-10)

“Despite a huge growth in business over the past few years, the Federal Housing Administration (FHA) says its huge portfolio, now worth $750bn, is safely managed as the firm becomes comfortable with dealing with risk.”

Housing Wire - “VIEWPOINT: Waiting for the Fed to Withdraw” (2-1-10)

“The Fed will end the program by March 31 at $1.25trn. There is still chatter, however, about what circumstances would prompt the Fed to resume MBS purchases after March 31. It boils down to two things: a substantial re-weakening in home sales and prices or an excessive spike in mortgage rates.”

Housing Wire – “Fannie Mae Serious Mortgage Delinquencies Rise Above 5%” (2-1-10)

“The government-sponsored enterprise (GSE) Fannie Mae (FNM: 1.03 +7.29%) reported a serious delinquency rate for its mortgage portfolio of 5.29% in November 2009, the latest month of data, the highest in recent memory. That number grew from 4.98% in October and more than doubled the 2.13% in November 2008, according to its monthly summary.”

Bloomberg - “MetLife Cut by Fitch on Commercial Real Estate Losses” (2-1-10)

“MetLife Inc., the largest U.S. life insurer, was downgraded by Fitch Ratings on the prospect of losses tied to investments including commercial real estate holdings.”

Inman - “Home construction down in December” (2-1-10)

“The rate of U.S. home construction spending nationwide fell year-over-year and month-to-month in December, according to a report released today by the U.S. Census Bureau of the Department of Commerce. Spending for December dropped to a seasonally adjusted annual rate of $268.7 billion, a 2.7 percent drop from $276.2 billion the month before, and a 10.3 percent drop from $299.4 billion in December 2008. This rate is a projection of a monthly spending total over a 12-month period, adjusted to reflect typical seasonal fluctuations in construction activity.”

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