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The Norris Group Real Estate News Roundup 3/8/10

Monday, March 8th, 2010

Today’s News Synopsis:

Multifamily home building will likely become more expensive in San Diego, as a new water meter program gains popularity. According to RealtyTrac, one in every 25 Los Angeles homes received a notice of foreclosure in 2009. Silicon Valley Bank forecasts an increase in foreclosures in Napa Valley.

In The News:

MBA – “MBA and Others Express Grave Concerns About Regulations Proposed Under SAFE Act” (3-8-10)

“HUD is proposing to exceed its statutory authority under the SAFE Act establishing a backup system and determining whether state laws meet the SAFE Act’s minimum requirements. In this regard, HUD indicates it may require states to treat servicer employees engaged in loan modifications as originators for the purposes of the Act. If the regulation is finalized as proposed, HUD risks significantly curtailing the ability of servicers to complete loan modifications until their employees are registered or licensed.”

Sign On San Diego – “S.D. could require multifamily water meters” (4-8-10)

“The City Council takes up a proposed ordinance tomorrow after months of fine-tuning. The proposal is widely expected to pass, creating what several water experts said would be a first in the county. It would require submetering for new complexes with three or more units and in cases when an entire interior drinking water system is replaced for a complex with three or more homes. Some exemptions apply.”

Housing Wire - “Los Angeles to Pull Investments from Foreclosure-Heavy Financial Firms” (3-8-10)

“According to the real estate data provider, RealtyTrac, the Los Angeles metropolitan statistical area (MSA) had the 32nd highest foreclosure rate in the country in 2009 as foreclosures remained concentrated the sand states. There, one in every 25 homes received a foreclosure filing, a 37% increase from 2008. California leads all states with the most permanent modifications under the Home Affordable Modification Program (HAMP), according to the US Treasury Department.”

Housing Wire – “State Applications Open for Federal Underwater Borrower Aid” (3-8-10)

“Select state Housing Finance Agencies (HFAs) can submit proposals for using $1.5bn from the HFA Hardest-Hit Fund to prevent foreclosures and stabilize local housing markets, according to the US Treasury Department. Eligible HFAs can apply for clearance to fund principal-forgiveness, unemployment and second-lien reduction programs.”

Housing Wire – “Investors Shun Fund of Funds for Higher Hedge Gains: Barclays” (3-8-10)

“The migration of money away from fund of funds and directly into the hedge fund space indicates investors are being drawn by the recent successes in the industry, which look set to continue, according to market analysts. The business for hedge funds in the United States is growing posting an estimated inflow of $7.1bn — or 0.5% of assets — in January, according to TrimTabs Investment Research and hedge fund data vendor BarclayHedge.”

Housing Wire – “Failed Banks May Get Pension-Fund Backing as FDIC Seeks Cash” (3-8-10)

“The Federal Deposit Insurance Corp. is trying to encourage public retirement funds that control more than $2 trillion to buy all or part of failed lenders, taking a more direct role in propping up the banking system, said people briefed on the matter.”

Bloomberg – “Vineyard Defaults Surge as Bargain Wines Hurt Napa” (3-8-10)

“In California’s Napa Valley, producer of the most expensive U.S. wines, 2010 may be a vintage year for foreclosures as the industry is squeezed by falling land values and a consumer shift to cheaper brands. As many as 10 wineries and vineyards in Napa will change hands in distressed sales or foreclosures this year and next, up from none in 2008, according to Silicon Valley Bank.”

Looking Back:

One year ago, the number of borrowers who defaulted after the first payment tripled. The Government predicted a 10.3 percent unemployment rate. 650,000 jobs dissapeared in one month.

Tags: bruce norris, building, foreclosure, hamp, HFA, HUD, loan, Los Angeles, MBA, modification, mortgage, multifamily, real estate, RealtyTrac, SAFE Act, san diego, Treasury Department, water meter
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The Norris Group Real Estate News Roundup 12/10/09

Thursday, December 10th, 2009

Today’s News Synopsis:

According to RealtyTrac, foreclosure activity decreased by 8 percent in November. Hanley Wood Market Intelligence reports that Orange County builders had their first positive month in October, after 13 months of contract declines. A survey from HomeGain shows that 48 percent of agents and brokers believe that home prices will stay the same, and 24 percent believe that prices will increase. Data from the U.S. Treasury Department shows that 31,382 of the 1 million three-month modifications have become permanent.

In The News:

DSNews - “Foreclosure Activity Recedes for Fourth Straight Month: RealtyTrac” (12-10-09)

“The foreclosure tide appears to be subsiding, according to the latest numbers from RealtyTrac. The company said Thursday that foreclosure activity fell 8 percent in November, compared to October – it’s the fourth consecutive month that RealtyTrac’s data has shown a decrease in foreclosure filings.”

CBIA - “California New-Home Market Breaks into Positive Territory, CBIA Announces” (12-10-09)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 25 percent above October 2008, a strong improvement from the lingering year-over-year decline last month and represents the first notable increase since the start of the housing downturn. During October, 2,294 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 1,838 in October 2008. Sales of single-family homes were up by 4 percent, while sales of townhomes and ‘plexes’ – duplexes, triplexes, etc. – were up 36 percent and sales of condominiums were 94 percent higher than a year ago thanks to strong sales at projects in the Los Angeles and San Francisco areas.”

Orange County Register – “Losing streak ends for O.C. builders” (12-10-09)

“Hanley Wood Market Intelligence says after 13 straight months of annual declines in new home sales contracts, Orange County builders recorded their first up month in October. According to the Costa Mesa research firm, homebuyers signed 90 contracts to buy a new Orange County home that month, up 13.9% from October 2008.”

Inman - “Survey: Hopeful on home prices” (12-10-09)

“Forty-eight percent of agents and brokers surveyed think home prices will stay the same and 24 percent think prices will go up, the company reported. That’s a slight increase from the third-quarter survey, when those numbers were 46 percent and 23 percent, respectively. This marks a major change from HomeGain’s first-quarter survey when 36 percent thought prices would remain flat and 11 percent thought prices would increase. The survey had 928 respondents.”

Housing Wire – “30,000 Trial HAMP Mods Go Permanent” (12-10-09)

“Of the 1m homeowners who have been offered three-month trial modification under the Home Affordable Modification Program (HAMP), 31,382 have received a permanent modification, according to from the US Treasury Department.”

Housing Wire – “Mortgage Volume to Decline in 2010, Says Dorado” (12-10-09)

“Mortgage origination volume will decline next year compared to 2009 levels, but the use of software-as-a-service (SAAS) applications will rise, San Mateo, Calif.-based SAAS developer Dorado Corporation said in its projections for next year. Dorado projects more than 30% of mortgages created next year will be originated with SAAS applications, which generally work as Web-based tools a developer hosts on its own servers and distributes access through subscription licenses.”

Housing Wire – “Treasury Used $364bn of TARP funds in 2009″ (12-10-09)

“The Treasury Office of Financial Stability (OFS) used $364bn of the $700bn available funds, mostly in investments according to the report, and $73bn of the TARP funds have already been repaid. Bank of America last week committed to repaying the $45bn it received through the program.”

Housing Wire - “Mortgage Rates Rise off Record Lows” (12-10-09)

“Freddie Mac’s (FRE: 1.12 +0.90%) survey put the 30-year fixed-rate mortgage (FRM) at 4.81% with an average 0.7 point for the week ending Dec. 10, up from the previous week when it was a record low average of 4.71%. A year ago, Freddie Mac put the 30-year FRM at 5.47%.”

Bloomberg – “Wells Fargo Cuts as Much as 30 Percent in Principal” (12-10-09)

“Wells Fargo & Co., the bank that gained a portfolio of option adjustable-rate mortgages when it bought Wachovia Corp. last year, cut the principal for delinquent borrowers in some loans by as much as 30 percent. Wells Fargo has forgiven an average of $46,000 in principal, or 15 percent, for the 43,500 option-ARM loans it has modified this year through September, said Franklin Codel, chief financial officer at the bank’s home-lending unit.”

Looking Back:

One year ago, Orange County tax collectors reported that property tax collections decreased by $145 million. One hundred twenty-seven financial companies received preliminary approval for $60.4 billion from TARP.

Tags: agent, Bank of America, BofA, broker, bruce norris, builder, CBIA, condominium, Dorado Corporation, downturn, duplex, foreclosure, Franklin Codel, freddie mac, hamp, Hanley Wood, HomeGain, hwmi, modification, mortgage, OFS, option ARM, real estate, RealtyTrac, SAAS, TARP, Treasury Department, triplex, Wachovia, Wells Fargo
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The Norris Group Real Estate News Roundup 11/30/09

Monday, November 30th, 2009

Today’s News Synopsis:

Edward Pinto expects 20 percent of FHA’s mortgage loans to default. The Federal Reserve bought $16 billion worth of mortgage-backed securities last week. According to Michael Barr, Over 650,000 mortgage modifications are currently being processed, and over 375,000 borrowers will receive permanent modifications by the end of this year. A survey from Barclay’s shows that as a U.S. citizen’s net worth increases so does the proportion of their wealth invested in real estate.

In The News:

CNBC - “Fannie Mae to Tighten Lending Standards” (11-26-09)

“Fannie Mae plans to raise minimum credit score requirements next month and limit the amount of overall debt that borrowers can carry relative to their incomes”

The Daily Reckoning – “Federal Housing Administration Encourages More Bad Mortgage Loans” (11-26-09)

“An astounding 20 percent of the Federal Housing Administration’s $725 billion portfolio of mortgage loans will go into default as the result of the agency’s recent campaign to subsidize first-time homebuyers with little cash and weak credit. That prediction comes from an industry insider who has seen it all happen before: former chief credit officer of Fannie Mae, Edward Pinto, who recently testified before a House committee on the gathering storm of FHA mortgage defaults.”

Orange County Register – “Banks forced to buy back more loans” (11-26-09)

“Banks had to buy back $7.1 billion in defaulted single-family loans in the third quarter to reimburse mortgage investors, up from $1.9 billion in the previous quarter. Federal Deposit Insurance Corp. Call Report information shows that most of the buyback demands fell on JPMorgan Chase and Bank of America. Chase repurchased $2.7 billion in defaulted loans and BoA repurchased $2.3 billion to satisfy investor demands.”

Finance My Money – “FDIC too broke to Takeover Banks? No Bank Failure Friday on Black Friday. Can 5,300 Employees Deal with $5.3 Trillion in Deposits?” (11-30-09)

“The Federal Deposit Insurance Corporation (FDIC) was hammered this week when a third quarter report demonstrated that the FDIC was running in the red to the sum of $8.2 billion. This is troubling since the FDIC protects deposits in member banks up to $250,000 and funds covered by the deposit insurance fund (DIF) are over $5.3 trillion, this amount is over one-third of our nationwide GDP. The FDIC as of Q1 of 2009 has 5,381 employees.”

San Francisco Chronicle – “Gov’t increases pressure on mortgage industry” (11-30-09)

“The Treasury Department said Monday it will withhold payments from mortgage companies that aren’t doing enough to make the changes permanent. Officials will monitor the largest of the 71 participating mortgage companies via daily progress reports. The goal is to increase the rate at which troubled home loans are converted into new loans with lower monthly payments. At the end of October, more than 650,000 borrowers, or 20 percent of those eligible, had signed up for trials lasting up to five months.”

Inman – “Non-investors get Fannie REOs first” (11-27-09)

“Fannie Mae has launched a new program that’s intended to give public entities and buyers looking for a home to live in, rather a property to flip, a first crack at homes Fannie has foreclosed on. Under Fannie Mae’s ‘First Look’ initiative, only offers from buyers who intend to be owner occupants and buyers using public funds will be considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed.”

Housing Wire – “Fed Continues Slower Agency MBS Purchases” (11-30-09)

“The Federal Reserve continued its slower mortgage bond purchases, buying up $16bn of mortgage-backed securities (MBS) from government-sponsored entities in the week ending November 25. The Fed’s purchases shifted more toward Freddie Mac (FRE: 1.03 -6.36%), with $6.5bn of Freddie MBS purchased this week, from $5.9bn last week. The Fed bought $6bn from Fannie Mae (FNM: 0.88 -6.38%), compared with $4.55bn last week. The Fed also bought $3.5bn from Ginnie Mae this week, according to details released by the New York Fed.”

Housing Wire – “FHA Proposes Lenders Maintain $2.5m Net Worth” (11-30-09)

“Federal Housing Administration (FHA)-approved lenders could be required to hold increased net worth, meet stronger approval criteria and be held responsible for the actions of the mortgage brokers they do business with, if a recently proposed FHA rule is enacted. The rule is designed to reduce risks to the single-family insurance fund, which finances the FHA guarantees of mortgages in case of default. The FHA reported to Congress recently the insurance fund dipped below the Congressional-mandated 2% capital reserve threshold.”

Housing Wire – “375,000 HAMP Trials to Go Permanent, Treasury Says” (11-30-09)

“Under HAMP, the Treasury allocates capped incentives to participating servicers for the modification of loans on the verge of foreclosure. According to the latest report, more than 650,000 trials modifications are underway. Saxon Mortgage Services leads all servicers by providing trials to 44% of its eligible portfolio, according to the report. More than 375,000 borrowers are on track for a permanent modification by the end of the year, according to Michael Barr, assistant secretary for financial institutions at the Treasury.”

Bloomberg – “Wealthy Investors Plan to Buy More Real Estate, Barclays Says” (11-30-09)

“Twice as many people plan to raise their investment in commercial and residential property as intend to reduce it, the Barclays Wealth unit said in an e-mailed statement today. The richer the individual, the greater the proportion of wealth is placed in real estate, the survey found.”

Orange County Register – “Irvine home listings drop along with temps” (11-30-09)

“As of last Wednesday, there were 461 active homes for sale in Irvine, with an expected market time of 2.06 months, according to a biweekly report done by Steven Thomas of Altera Real Estate. That’s a benchmark tracking how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made.”

Looking Back:

One year ago, the CIRB reported that the value of non-residential building in 2008 had reached a total of $1.3 billion. Evan Gentry of G8 Capital predicted that Orange County would need another five years before real estate began to appreciate again. New home sales decreased by 18 percent in the West during October of 2008.

Tags: Altera Real Estate, bank, Bank of America, Barclays, BofA, bruce norris, Chase, credit, default, fannie mae, FDIC, Federal Reserve, FHA, freddie mac, gdp, Ginnie Mae, hamp, homebuyer, investor, JP Morgan, loan, Michael Barr, MLS, modification, mortgage, owner occupant, real estate, Saxon Mortgage Services, steve thomas, Steven Thomas, Treasury Department
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The Norris Group Real Estate News Roundup 11/10/09

Tuesday, November 10th, 2009

Today’s News Synopsis:

According to the NAR, existing home sales increased by 11.4 percent in the second quarter. The Treasury Department reports that 20 percent of borrowers have signed up for a loan modification. A poll from Reuters shows that economists expect the unemployment rate to reach 10.5 percent next year.

In The News:

NAR - “Existing-Home Sales Surge in Many States in Third Quarter, Metro Prices Moderating” (11-10-09)

“Total state existing-home sales, including single-family and condo, increased 11.4 percent to a seasonally adjusted annual rate1 of 5.30 million units in the third quarter from 4.76 million units in the second quarter, and are now 5.9 percent above the 5.01 million-unit pace in the third quarter of 2008″

Los Angeles Times – “Fewer banks tightened lending standards last quarter, Federal Reserve says” (11-10-09)

“Demand for most types of loans weakened at a smaller number of banks than in the second quarter, the Fed also said Monday in its quarterly Senior Loan Officer survey. For prime residential mortgages, a larger number of banks reported stronger demand, the central bank said.”

San Francisco Chronicle – “Housing plan reaches 1 in 5 borrowers” (11-10-09)

“As of the end of October, more than 650,000 borrowers, or 20 percent of those eligible, had signed up for trials lasting up to five months, the Treasury Department said Tuesday. The modifications reduce monthly payments to more affordable levels.”

Housing Wire – “Sen. Dodd Reveals New Financial Reform Proposal” (11-10-09)

“The bill, drafted by committee chairman Chris Dodd (D-Conn.), would create the Consumer Financial Protection Agency, which provides consumers information when they shop for mortgages, credit cards and other products. The agency would prohibit hidden fees, abusive terms and deceptive practices.”

Housing Wire – “House Prices Down Nearly 1% from August: Altos Research” (11-10-09)

“A market composite of housing prices compiled by Altos Research was down 0.4% from September to October and down 0.9% from August. The composite of 10 major housing markets put home sales prices at $501,377 in October, down from $503,401 in September and $506,180 in August.”

Housing Wire – “Fitch Sees Prepayment Rate Near 7% for ‘04 Subprime RMBS” (11-10-09)

“Fitch’s ‘04 vintage subprime RMBS price index dropped 16.7% in the most recent month of data, while the overall subprime RMBS price index showed only a ‘marginal’ monthly fall. The ‘04 vintage loss erased the small monthly gains among ‘05, ‘06 and ‘07 vintages.”

Bloomberg - “Toll Brothers Revenue Declines Less Than Estimated” (11-10-09)

“Toll Brothers Inc., the nation’s largest luxury homebuilder, announced fourth quarter revenue that beat analysts’ estimates. The shares gained. Revenue dropped to $486.6 million in the quarter ending Oct. 31 from $698.9 million a year earlier, the Horsham, Pennsylvania-based builder said in a statement. Twelve analysts in a Bloomberg survey predicted an average of $373.5 million in revenue.”

Bloomberg - “PennyMac’s Kurland Plans New Effort in Mortgages” (11-10-09)

“PennyMac Mortgage Investment Trust, the buyer of troubled housing debt, expects to start purchasing newly issued loans and packaging them into bonds by the middle of next year, Chief Executive Officer Stanford Kurland said. The new initiative would be run by Private National Mortgage Acceptance Co., the manager of Calabasas, California- based PennyMac, Kurland said in an interview. Private National Mortgage, which he also heads, is working to enter the business as well.”

CNBC - “Jobless Rate to Hit 10.5%, Keeping Fed in Box: Poll” (11-10-09)

“Unemployment in the United States will shoot to 10.5 percent by the middle of next year, constraining the Federal Reserve’s ability to raise interest rates, according to economists surveyed by Reuters.”

Tags: Altos Research, bruce norris, builder, Consumer Financial Protection Agency, economist, Federal Reserve, Fitch, hidden fee, loan, modification, mortgage, N.A.R., NAR, national association of realtors, real estate, residential, RMBS, subprime, Toll Brothers, Treasury Department
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The Norris Group Real Estate News Roundup 11/6/09

Friday, November 6th, 2009

Today’s News Synopsis:

Fannie recently developed the “Deed-for-Lease” program which allows qualified borrowers to deed their properties back to Fannie and continue to live in the house for up to 12 months. Fannie Mae is asking for $15 billion in support from the Treasury Department. Ronald Pressman from GE Capital Real Estate believes that the commercial real estate market is far from a recovery. The U.S. unemployment rate increased to 10.2 percent in October.

In The News:

Housing Wire – “BarCap Sees ‘Limited Use’ of Fannie’s Deed-for-Lease Program” (11-6-09)

“The Deed-for-Lease (D4L) program allows qualified borrowers to voluntarily deed the property back to Fannie and remain in the home on lease for up to 12 months. It targets borrowers that do not qualify for other workout alternatives like the Home Affordable Modification Program (HAMP), which allocates federal incentives to servicers that pursue modifications before foreclosure.”

Housing Wire – “Higher Unemployment Means Many More Distressed Properties to Come” (11-6-09)

“The US Conference of Mayors, a nonpartisan organization that represents cities with populations greater than 30,000, is sending out an industry warning that they expect employment rates to continue to climb in 2010, reaching levels as high as 15% in some municipalities. Servicers in these areas should prepare to face a much heavier distressed asset portfolio as borrowers struggle to cope with lose of income, says Dave Gatton, a director at the firm.”

Housing Wire – “Fannie Asks Treasury for $15Bn, May Sell Housing Tax Credits” (11-6-09)

“Financial fallout at mortgage giant Fannie Mae (FNM: 1.0299 -8.04%) continues to develop following the $19.8bn quarterly net loss, with the agency’s conservator confirming Fannie may sell as much as $2.6bn of low-income housing tax credits to investors and is requesting another $15bn in support from the US Treasury Department.”

Housing Wire – “Calif. Commercial Delinquency Rate Drops to 0.23%: CMBA” (11-6-09)

“The delinquency rate for commercial loans in California slipped 3bps from 0.26% to 0.23% in Q309, according to a survey conducted by the California Mortgage Bankers Association (CMBA).”

Housing Wire – “Fed Buys Another $16Bn of Agency MBS” (11-6-09)

“The Federal Reserve Bank of New York bought $16bn of mortgage-backed securities (MBS) from housing finance agencies Freddie Mac (FRE: 1.19 -4.80%), Fannie Mae (FNM: 1.03 -8.04%) and Ginnie Mae in the week ending November 4. The Fed bought $3.27bn from Freddie, $12.55bn from Fannie and $175m from Ginnie. For the first week in months, were no MBS sales listed in the week ending November 4.”

Bloomberg - “Commercial Property ‘Long Way’ From Rebound, GE’s Pressman Says” (11-6-09)

“The U.S. commercial property market is far from recovery and needs job growth, sustained low interest rates and further government support, said GE Capital Real Estate Chief Executive Officer Ronald Pressman. ”

Reuters - “Surge in temp jobs points to stronger U.S. economy” (11-6-09)

“U.S. temporary staffing — historically one of the first areas to show evidence of a jobs recovery — surged in October, adding about 34,000 jobs in a positive sign for the overall economy even as the overall employment rate rose above 10 percent.”

Orange County Register – “1 in 4 Surf City home sales distressed” (11-6-09)

Three charts are displayed which contain data on Huntington Beach listings and escrows.

Inman - “15 best iPhone apps for mobile agents” (11-6-09)

“Home Tracker. You’ve seen a lot of homes and it can make your head spin. Home Tracker keeps track for you. Store information on each property such as address, ZIP code, price and size; add notes; take photos; rate the property condition, location and appeal; star your favorites; map the property; and best of all, e-mail the summary of home tours to your clients.”

Realty Times – “Is Your Agent Experienced in Distressed Properties?” (11-6-09)

“the National Association of Realtors (NAR) is coming to the rescue with real estate agents specifically schooled in those subjects. A new Short Sales and Foreclosure Certification Program (SFR) trains agents how to manage short-sales, foreclosures, and real estate owned (REO or bank owned) transactions, and keeps agents current on national and state-specific information and regulations on these issues.”

Wall Street Journal – “Broader U-6 Unemployment Rate Hits 17.5%” (11-6-09)

“The U.S. jobless rate jumped up 0.4 percentage point to 10.2% in October, the highest level since April 1983. The government’s broader measure of unemployment shot up even more, rising half a point to 17.5%.”

Wall Street Journal – “Real Time Economics” (11-6-09)

“The bad news is that the jobs situation seems to have stalled out after improving dramatically through the summer. Private payroll declines actually widened slightly in September and in October. Thus, while we still strongly believe based on anecdotes, surveys, and other statistics that the labor situation is improving and that job losses will come to an end within a few months, the payroll numbers themselves do not indicate much positive momentum. In contrast to the payroll survey results, the household survey data were unambiguously negative. The unemployment rate surged to 10.2%, as the household gauge of employment plunged by almost 600,000 on top of September’s 785,000 drop. –Stephen Stanley, RBS”

Tags: agent, BarCap, Barclays, CMBA, commercial, Dave Gatton, deed-for-lease, delinquency, employment, escrow, fannie mae, foreclosure, freddie mac, GE Capital, Ginnie Mae, hamp, home tracker, lease, MBS, NAR, national association of realtors, real estate, Ronald Pressman, SFR, short sale, Stephen Stanley, Treasury Department
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The Norris Group Real Estate News Roundup 10/6/09

Tuesday, October 6th, 2009

Today’s News Synopsis:

Reis Inc. reports that the U.S. apartment vacancy rate rose to 7.8 percent from the previous season. The US Treasury Department increased the cap of HAMP by $4.7 billion after previously cutting the cap down. Hayman Advisors LP recently bought mortgage bonds worth 50 percent of their assets. According to statistics from Altera Real Estate, the average home in Laguna Beach will currently take 11.03 months to sell.

In The News:

Wall Street Journal – “Apartment Glut Expands” (10-6-09)

“The U.S. vacancy rate reached 7.8%, a 23-year high, according to Reis Inc., a New York real-estate research firm that tracks vacancies and rents in the top 79 U.S. markets. The rate is expected to climb further in the fall and winter, when rental demand is weaker, pushing vacancies to the highest levels since Reis began its count in 1980.”

Housing Wire – “CA State Bar Files Petitions on Alleged Modification Fraud” (10-6-09)

“The State Bar of California filed petitions against two attorneys that would render them involuntarily inactive during investigations into their involvement in alleged loan modification fraud. In September, the State Bar identified 16 attorneys that allegedly took fees for the promise of getting a loan modified and then failed to perform the modifications, notify the client or return the fees, according to a release.”

Housing Wire – “Treasury Grants Another $4.7bn to HAMP Servicers” (10-6-09)

“The US Treasury Department made another round of adjustments the total capped incentives to servicers participating in the Home Affordable Modification Program (HAMP). Treasury granted a total $4.7bn of incentive funds from the previously downwardly adjusted cap amount. The recent adjustments, made in late September, bring the total capped amount to to $27bn, according to the Troubled Asset Relief Program’s (TARP) latest transaction report. The latest round of adjustments comes after several adjustments in June and July, which took a total $1.13bn in cuts off the original amount allotted.”

Housing Wire – “Bill Raises Required Down Payment to 5% for FHA Loans” (10-6-09)

“A bill introduced in Congress Monday would increase the minimum down payment for Federal Housing Administration (FHA)-insured mortgages from 3.5% to 5%. The FHA Taxpayer Protection Act of 2009 — HR 3706 — would also prohibit financing initial service charges, appraisals, inspections, or other fees or closing costs with any part of an FHA mortgage.”

Bloomberg - “Bass Buys Mortgages, Metals on Hyperinflation Fear” (10-6-09)

“Kyle Bass, the hedge-fund manager who made $500 million in 2007 betting against subprime securities, is buying shorter-term debt and precious metals, anticipating hyperinflation will lead to higher interest rates. Funds advised by Hayman Advisors LP bought mortgage bonds equal to about 50 percent of assets, Bass wrote in a letter to investors Oct. 2. The Dallas-based investment firm added corporate debt, primarily high-yield loans and bonds, equal to approximately 25 percent of assets. ”

Bloomberg - “California Hotel Foreclosures Triple in Travel Slump” (10-6-09)

“Hotel foreclosures in California more than tripled in the first nine months of this year as business travelers and vacationers cut spending. Foreclosures including the 400-room St. Regis Monarch Beach resort in Dana Point climbed to 47 in January through September from 15 a year earlier. Properties in default more than quadrupled to 259, Irvine, California-based Atlas Hospitality Group said in a statement. Atlas specializes in selling hotels. The survey didn’t include states other than California. ”

Bloomberg - “U.S. Economy on Mend, Housing Poised for Rebound, LaVorgna Says” (10-6-09)

“The U.S. economy is on the mend and housing is poised for a rebound, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York. ”

Orange County Register – “How many Irvine homes sold in September?” (10-6-09)

“Gunther tracked 170 home resales that closed escrow, or a rate of 5.67 sales per day; that’s similar to the 175 sales in July. The median sales price for September was $539,488, down from $585,000 in August. There were 225 leases signed during the month of September, and monthly rents averaged $1.54 per square foot.”

Orange County Register – “New sign of weakness in O.C. high-end housing” (10-6-09)

“The Balboa Island Price Index, or the BIPI, is the brainchild of Girling Real Estate Investment Group. Broker David Girling said the inland lots on Balboa Island lend themselves particularly well to measuring real estate price changes because of the uniformity of lot sizes. Nearly 1,100 of the island’s 1,498 parcels are 30 feet by 85 feet. Yet, Balboa’s 2,550-square-foot lots still remain pricey — with an average price of $1.4 million this past quarter (and that’s the lowest in 5 1/2 years).”

Orange County Register – “Homes selling a bit slower in south coast cities” (10-6-09)

“Laguna Beach’s expected market time has increased to 11.03 months from 10.32 months, according to a biweekly report by Steven Thomas of Altera Real Estate. This makes Laguna the third slowest housing market in the county – behind Corona Del Mar with an 11.53-month market time and Newport Beach with an 11.05-month market time.”

Wall Street Journal – “U.S. Data Show High Mortgage-Denial Rate for Blacks” (10-6-09)

“A Federal Reserve report on home mortgage data showed that blacks and Hispanic whites were far more likely than non-Hispanic whites to be denied last year in applying to refinance. The annual report is based on data collected from more than 8,000 mortgage lenders nationwide under the Home Mortgage Disclosure Act of 1975, known as HMDA.”

Tags: Altera Real Estate, apartment, Atlas Hospitality Group, bruce norris, FHA, foreclosure, fraud, Girling Real Estate Investment, hamp, Hayman Advisors, Joseph LaVorgna, Kyle Bass, modification, real estate, REIS, steve thomas, TARP, Taxpayer Protection Act, Treasury Department
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The Norris Group Real Estate News Roundup 10/2/09

Friday, October 2nd, 2009

Today’s News Synopsis:

Interthinx’s employment and income fraud index decreased by 33 percent from Q2 of 2008 to Q2 of 2009. Real estate expert John Burns believes that the new short sale incentive program will be helpful in clearing up excess inventory. According to the American Bankruptcy Institute and National Bankruptcy Research Center, U.S. consumer bankruptcies passed 1 million during the first 9 months of 2009. The U.S. government could lose nearly 80 percent of its $2.33 billion investment in CIT, should the company choose to exchange its debt.

In The News:

Housing Wire – “First American Studies Neighborhood Spread of Delinquency” (10-2-09)

“With the delinquency rates of prime and subprime mortgages trending upward across the nation, individual markets show different patterns of where those delinquencies gather within the city limits. A study by First American CoreLogic examines the spatial distribution of serious mortgage delinquencies across neighborhoods in the 30 largest US cities. Five patterns emerge from the data.”

Housing Wire – “Risk Retention May Backfire in Down Market, Says IMF” (10-2-09)

“The return of activity to private-label securitization markets will be a crucial part of economic recovery, but going forward, new measures must be put in place to ensure the markets positively contribute to financial stability and sustainable economic growth, according to the International Monetary Fund’s (IMF) Global Financial Stability Report.”

Housing Wire – “Mortgage Fraud Declines: Interthinx” (10-2-09)

“Mortgage fraud may be on the decline, according to the latest results of a quarterly index. Interthinx’s employment and income fraud index decreased 33% in Q209 from Q208, according to the latest Interthinx Mortgage Fraud Risk Report. Interthinx said the decline is due in part to lenders increased use of the Internal Revenue Service’s (IRS) 4506-T income verification form.”

Housing Wire – “$2,500 Incentive Will Spur Short Sales, Says John Burns” (10-2-09)

“A Treasury Department spokeswoman confirmed an incentive program for servicers that pursue short sales is on its way, according to John Burns Real Estate Consulting. The subsidy program will provide $1,000 to the servicer and $1,500 to the seller in each short sale transaction for a total incentive of $2,500 per short sale, the spokesperson told the consulting firm. This strategy should help ‘clear excess inventory,’ according to market commentary by John Burns Real Estate.”

Housing Wire – “2008 Mortgage Data Illustrates 31% Drop in Originations” (10-2-09)

“Mortgage lending data from 8,388 US financial institutions covered by the Home Mortgage Disclosure Act (HMDA) showed a decline in both lenders and originations in 2008 from levels seen in 2007. The data, released this week by the Federal Financial Institutions Examination Council (FFIEC), illustrate a 3% decrease in the number of reporting institutions and loans, primarily reflecting a large decline in the number of independent mortgage companies. Warehouse mortgage funding continued to dry up at the same time, a problem that led to the recently proposed legislation that aims to support and facilitate increased warehouse credit capacity for qualified lenders.”

Bloomberg – “U.S. Consumer Bankruptcies Top 1 Million, Group Says” (10-2-09)

“U.S. consumer bankruptcies rose past 1 million through the first nine months of the year, the highest since 2005 changes to bankruptcy laws. Personal bankruptcies totaled 1,046,449 for the period, according to the American Bankruptcy Institute and National Bankruptcy Research Center. For the first nine months of 2005, the figure was 1.35 million.”

Inman - “Turbulence seen for reverse mortgages” (10-2-09)

“A reverse mortgage, which is available only to those 62 and older, allows homeowners to use the equity that has built up in a residence. In effect, the homeowner gets a loan in the form of a lump sum or multiple payments. Repayment, with interest, is deferred until the owner dies, or goes into aged care, and the home is sold. Or, in a worst-case scenario, if the homeowner fails to pay property taxes or homeowners insurance.”

Reuters - “CIT debt swap could cost U.S. more than $1.8 billion” (10-2-09)

“If CIT Group (CIT.N) exchanges its debt under an offer aimed at averting a bankruptcy filing, the U.S. government could lose nearly 80 percent of its $2.33 billion investment in the troubled commercial lender. A likely $1.8 billion loss would be another black eye for the United States’ Troubled Asset Relief Program. A government official said last week that TARP has saved the financial system from collapse, but fell short of some of its other goals.”

Looking Back:

One year ago, the MBA reported that its Government Purchase Index decreased by 14.1 percent. Mark Finerman of Greenwich Capital began to raise 3 billion dollars for a fund to make senior property loans. A study from Radar Logic showed that home prices had dropped in 24 of 25 major metropolitan markets in the United States.

Tags: American Bankruptcy Institute, bankruptcy, CoreLogic, delinquency, FFIEC, First American, fraud, HMDA, Home Mortgage Disclosure Act, International Monetary Fund, John Burns, mortgage, real estate, short sale, Treasury Department
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The Norris Group Real Estate News Roundup 9/28/09

Monday, September 28th, 2009

Today’s news Synopsis:

The Federal Reserve has printed $860 billion in mortgage-backed securities. Under the new U.S. Treasury Department program, states that provide mortgages to low-income borrowers may receive up to 35 billion dollars in Federal aid. According to SoCal MLS, distressed sales accounted for 40 percent of all Orange County sales in July.

In The News:

Los Angeles Times – “Don’t bank on your home as an ATM” (9-27-09)

“The economic fundamentals that drove home values up in the 20th century — sustained growth in incomes, population and household wealth — have been sputtering for decades. Though the future isn’t necessarily bleak, economists say there’s no reason Americans should continue to see a home purchase as a path to wealth.”

San Francisco Chronicle – “Be wary of buying into homeowner association” (9-27-09)

“While there are advantages to living in a place where all the owners share the cost of operating and maintaining amenities individual owners couldn’t afford on their own, it’s also true that condo and homeowner associations obligate all members with substantial financial and legal liabilities.”

Los Angeles Times – “Beyond Fannie and Freddie” (9-27-09)

“Homeownership may be the American dream, but lately it has been an expensive one for taxpayers. The deduction for mortgage interest cost about $80 billion in lost revenue in 2009, and a tax credit for home buyers in this year’s stimulus bill will add $15 billion to the tab. Taxpayers have provided Fannie Mae and Freddie Mac, two giant, troubled mortgage finance companies, nearly $100 billion that they have little chance of recouping. Mounting defaults also threaten the Federal Housing Administration, the agency that guarantees many home mortgages, raising the odds for yet another multibillion-dollar federal bailout. Meanwhile, the Federal Reserve has effectively been printing money to reduce mortgage interest rates, using the new dollars to buy more than $860 billion in mortgage-backed securities.”

Bloomberg - “Housing Agencies May Get $35 Billion in Treasury Aid” (9-28-09)

“State housing agencies in the U.S. that provide mortgages to low-income borrowers would get as much as $35 billion in federal aid under a new U.S. Treasury Department program, people familiar with the matter said. The program would provide up to $15 billion in fresh funding for as long as three years and would purchase as much as $20 billion in tax-exempt mortgage bonds issued by state- sponsored housing finance agencies through the end of this year, a person familiar with the matter said. The program may be announced as early as Sept. 30, said the person, who didn’t want to be named because the plans haven’t been made public.”

Bloomberg - “Negative Bond Returns Converge With Mortgage Miracle” (9-28-09)

“Federal Reserve Chairman Ben S. Bernanke has some good news for investors: Treasury bondholders will lose money for the first time in 10 years amid an unprecedented decline in the gap between the interest rate on 30-year mortgages and government notes, signaling an end to the worst financial crisis since the Great Depression.”

Orange County Register – “Calif. has nation’s highest mortgage burdens” (9-28-09)

“Do we need a Census Bureau survey to tells us how costly it is to own a home in California? Well, the 2008 edition of the American Community Survey does deeply detail California’s steep homeowning costs.”

Orange County Register – “Buying non-foreclosed homes surges in O.C.” (9-28-09)

“But the Southern California Multiple Listing Service estimated that short sales accounted for around 18% of all Orange County resales from February through July. Overall, “distressed” sales (foreclosures and short sales combined) accounted for four out of every 10 sales in July, by SoCal MLS’s math.”

Inman - “Loan shoppers: their own worst enemy?” (9-28-09)

“The proposed new disclosures will be required at the point of application. This is a great idea, if it is properly implemented. Proper implementation means that the information lenders must submit at the point of application will help consumers select from among loan providers. Stated somewhat differently, the information must reveal differences between lenders that will cause borrowers to prefer one over another.”

Looking Back:

One year ago, Citigroup chose to buy Wachovia’s banking business. Morgan Stanley sold 21 percent of its stock to Japan’s Misubishi UFJ. Permits for new housing construction in Orange County dropped by 94 percent in one month.

Tags: American Community Survey, Bernanke, Census, Commerce Department, condo, fannie mae, Federal Reserve, freddie mac, home, homeowner association, MLS, mortgage, real estate, sales, Treasury Department
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