According to the most recent Mortgage Bankers Association Weekly Mortgage Applications Survey, mortgage applications increased 23.1% from last week.  NAHB reported builder confidence increased this month for the fourth month in a row, having increased 4 points to 25.  The FHFA is expected to be subpoenad regarding how principle reductions would effect Fannie Mae and Freddie Mac.

In The News:

Housing Wire – “Democrats push to subpoena FHFA over principal reductions” (1-18-12)

“Democrats on the House oversight committee are pushing to subpoena the Federal Housing Finance Agency to obtain an analysis looking at what effects principal reductions would have on Fannie Mae and Freddie Mac.”

NAHB - “Builder Confidence Rises Fourth Consecutive Time in January” (1-18-12)

“Builder confidence in the market for newly built, single-family homes continued to climb for a fourth consecutive month in January, rising four points to 25 on the NAHB/Wells Fargo Housing Market Index (HMI), released today. This is the highest level the index has attained since June of 2007.”

Bloomberg - “Fannie Fees Fail to Offset Record Low Lending Rates: Mortgage” (1-18-12)

“Ben S. Bernanke’s success in pushing mortgage rates to record lows is enabling Congress to fund last month’s payroll tax cut extension by siphoning money from Fannie Mae and Freddie Mac (FMCC), while homebuyers still benefit from the cheapest borrowing costs in history.”

Housing Wire - “Longer Forbearance Option Helps Temporarily Struggling Homeowners” (1-18-12)

“The BuildFax residential remodeling index in November rose for the 25th straight month from a year earlier, exceeding levels reached during the home-equity withdrawal boom of 2004 to 2006, analysts said.”

FINS - “Goldman Cut 2,400 Jobs, Plans More” (1-18-12)

“Even the most sought-after and prestigious investment bank in the business sometimes has to retool its strategy to stay profitable.  Goldman Sachs, which had originally planned to eliminate 1,000 positions in 2011, ended up shedding 2,400, according to its fourth quarter earnings statement.”

Mortgage Bankers Association - “Mortgage Applications Increase in Latest MBA Weekly Survey” (1-18-12)

“Mortgage applications increased 23.1 percent from one week earlier (last week’s results included an adjustment for New Years Day), according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 13, 2012.”

Housing Wire – “Home prices dip again in FNC index” (1-18-12)

“U.S. home prices fell 0.4% in November from October, the fourth-straight monthly decline according to FNC’s residential price index.”

DS News - “Clayton Holdins Closes Green River Capital Acquisition” (1-18-12)

“Clayton Holdings LLC announced Wednesday it has completed its acquisition of Green River Capital. No financial details were disclosed.”

Housing Wire - “Economic standstill stalls housing recovery: IHS report” (1-18-12)

“Wage stagnation and weak consumer confidence among young adults are two factors delaying a housing recovery, according to a new report from IHS Global Insight.”

CNN Money - “Foreclosure nightmares: 3 families fight for their homes” (1-18-12)

“With more than 200,000 households receiving foreclosure notices each month, there are bound to be a few mistakes. But for some unlucky homeowners, these blunders carry some serious consequences.”

Hard Money Loan Closed

Burbank, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $375,000 on a 4 bedroom, 2 bathroom home appraised for $617,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be speaking at the Women’s Council of Realtors today.

Bruce Norris of The Norris Group will be at the Investors Workshops and will be interviewing Shawn Watkins on January 25, 2012.

Looking Back:

19,528 new and resale houses and condos sold in Southern California the previous month, according to MDA DataQuick. LPS reported the average foreclosure in California and Nevada had been delinquent 461 days. December’s default rates for first and second mortgages were 2.93% and 1.74%.

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.

The percentage of homowners who are underwater has increased to 28.6% according to the latest Zillow report.  Home prices increased 4% in the third quarter despite the value of houses decreasing slightly from the previous quarter.  DS News reported overdue mortgages increased for the first time in almost two years.

In The News:

Housing Wire - “3Q home prices up 4%, housing value dips slightly from last quarter” (11-8-11)

“Home prices jumped 4% in the third quarter, though home values stagnated from the previous quarter, according to separate reports Tuesday.  Third-quarter prices showed two straight quarters of growth according to the
home price index from Integrated Asset Services. Second-quarter prices had increased 2% from the first quarter.”

DS News - “Past-Due Mortgages Rise for First Time Since 2009: Report” (11-8-11)

“The national mortgage delinquency rate edged up during the third quarter of 2011, marking the first increase in nearly two years, according to TransUnion.”

NAHB - “John Courson Named President and CEO of Home Builders Institute” (11-8-11)

“John A. Courson, an established housing industry executive who most recently served as the president and chief executive officer of the Mortgage Bankers Association (MBA), has been tapped to become the new president and chief executive officer of the Home Builders Institute (HBI).”

Bloomberg - “Ally’s ResCap Said to Hire Centerview for Restructuring” (11-8-11)

“Ally Financial Inc.’s unprofitable Residential Capital LLC mortgage unit hired Centerview Partners LLP to advise on a restructuring and negotiations with creditors, said people familiar with the matter.”

O.C. Register - “Poll: 42% want less governmnet in housing” (11-8-11)

“A politics and real estate survey from Move Inc. shows 42% of Americans polled think government’s role in the housing market should be reduced.  Meanwhile, 31% told pollsters that the role of government in housing should remain the same. Only 21.3% preferred an increased role for government in housing.”

San Francisco Chronicle - “Consumer credit rises in September” (11-8-11)

“Consumer borrowing in the United States rose in September, boosted by a gain in  non-revolving credit that includes financing for auto purchases and school loans.”

Housing Wire – “Senate wants changes to Fannie, Freddie executive pay” (11-8-11)

“A bipartisan group of 60 senators sent a scathing letter to the Federal Housing Finance Agency and the Treasury Department demanding a crack down on executive pay at Fannie Mae and Freddie Mac.”

Bloomberg Businessweek - “U.S. ‘Underwater’ Homeowners Increase to 28.6%, Zillow Reports” (11-8-11)

“The number of U.S. homeowners who owe more than their properties are worth climbed in the third quarter as lenders repossessed fewer houses, Zillow Inc. said.”

DS News - “CFPB Will Offer Some Servicers Early Warnings” (11-8-11)

“The Consumer Financial Protection Bureau (CFPB) will offer some mortgage servicers an early warning before pursuing legal action, according to an announcement released Monday.”

Bloomberg - “Toll Brothers Quarterly Revenue Increases 6% Amid Gain in Home Orders” (11-8-11)

“Toll Brothers Inc. (TOL), the largest U.S. luxury-home builder, said fourth-quarter revenue increased 6 percent amid strong sales at its East Coast communities.”

Looking Back:

The NAR reported FHA, Fannie Mae and Freddie Mac accounted for over 90% of the mortgage market. New California building codes, known as CALGreen, were expected to be enforced on January 1st, 2011. Richard Fisher of the Dallas Federal Reserve believed the low interest rates were doing little to stimulate the economy. Fannie Mae acquired 85,340 REO properties in the 3rd quarter of 2010.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

In today’s news, the pending sales for existing homes fell 4.6& in the U.S., according to Bloomberg.  Mortgage rates are holding steady at their lowest recorded in almost 60 years.  Last week the number of people filing for unemployment decreased to 402,000, although the number of unemployed is still high.

In The News:

Bloomberg - “Pending Sales of U.S. Existing Homes Fall 4.6%” (10-27-11)

“The number of contracts to purchase previously owned U.S. homes unexpectedly fell in September as lower prices and borrowing costs failed to support demand.”

Housing Wire – “GDP growth 2.5% in third quarter” (10-27-11)

“Real gross domestic product grew at an annual rate of 2.5% in the third quarter when compared to the previous three months, the Commerce Department said Thursday.”

NAHB - “Remodeling Activity Remains Slow Under Current Economic Conditions” (10-27-11)

“The current state of the national economy continues to affect the remodeling industry, according to the latest National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The index dropped to 41.7 in the third quarter from 43.9 in the second quarter, after having reached a four-year high of 46.5 in the first quarter. An RMI below 50 indicates that more remodelers report that market activity is declining than report that it is increasing.”

Los Angeles Times – “Weekly jobless claims dip to 402,000 but still are high” (10-27-11)

“New jobless claims dipped last week to 402,000, another somewhat encouraging sign for the still-troubled economy — though still too high to make a dent in the unemployment rate.”

Housing Wire – “Republican blueprints mortgage market without Fannie, Freddie” (10-27-11)

“Rep. Scott Garrett (R-N.J.) proposed his idea of a future mortgage market Thursday, one with new underwriting standards and transparency but without Fannie Mae, Freddie Mac or the upcoming risk-retention rule.”

DS News - “Fixed Mortgage Rates Show Little Movement” (10-27-11)

“Fixed mortgage rates showed little change for the second consecutive week amid mixed consumer confidence and housing data, and remain near their 60-year lows.”

CNN Money – “Small banks still stuck in federal bailout” (10-27-11)

“Hundreds of struggling small community banks could be stuck in the federal government’s much-maligned bank bailout program, a watchdog agency warned in a report released Thursday.”

DS News - “Delaware AG Sues MERS” (10-27-11)

“Delaware Attorney General Beau Biden filed suit Thursday against MERSCORP and its subsidiary, Mortgage Electronic Registration Systems (MERS). Biden charges MERSCORP with violating Delaware’s Deceptive Trade Practices Act.”

Inman - “Redfin raises $14.8M in new funding” (10-27-11)

“Technology-based real estate brokerage Redfin has raised $14.8 million in a new round of funding the company’s chief executive officer says will help it expand and weather seasonal ups and downs.”

Looking Back:

The MBA’s weekly survey showed mortgage application volume increased 3.2% the week of October 27, 2010. Mortgage bankers estimated the housing market would not recover until 2012 at least. HUD reported only 24,000 houses sold in September 2010.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Inman News reported that mortgage rates have reached a record low.  As an easier and faster way to check appraisal reports early on, Government sponsored enterprises Fannie Mae and Freddie Mac are planning to set up a new database for appraisers to submit their appraisal reports for selling mortgages.  And DS News reported that Nevada AG is planning to withdraw from its settlement with Bank of America reached back in 2008.

In The News:

Housing Wire – “Treasury withholds HAMP funds from BofA, Chase again” (9-1-11)

“The Treasury Department will withhold payments once again to Bank of America (BAC: 7.91 -3.18%) and JPMorgan Chase (JPM: 36.30 -3.35%) for their poor performance modifying mortgages in the second quarter.”

Inman - “Mortgage rates hover around all-time lows” (9-1-11)

“Mortgage rates remained at or near historic lows this week on continued weak economic and housing data, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey.”

DS News - “Nevada AG Moves to Withdraw from 2008 Countrywide Settlement” (9-1-11)

“Nevada is asking to be cut loose from a multi-state settlement agreement reached in October 2008 with Bank of America following its acquisition of Countrywide just four months earlier.”

Bloomberg - “Goldman Will Pay Penalties, Alter Practices to Win Approval of Litton Sale” (9-1-11)

“Goldman Sachs Group Inc. (GS) agreed to pay future Federal Reserve penalties and write down $53 million of mortgage loans in New York to gain approval for its sale of Litton Loan Servicing LP.”

Rismedia - “Foreclosures Now Take 20 Months” (9-1-11)

“The average home entering the foreclosure process today won’t house new owners until the next president has been inaugurated and in office for three months.”

Housing Wire – “New GSE appraisal database to tighten scrutiny on mortgage lenders” (9-1-11)

“Appraisers began submitting electronic property data for mortgages sold to Fannie Mae and Freddie Mac under new guidelines that took effect Thursday.”

Realtor Magazine - “Man Found Squatting in $2 Million Home” (9-1-11)

“Police are warning that squatters are getting more clever, even presenting fake deeds to try to prove ownership of a property without ever paying a dime.  A Raleigh, N.C., man was recently arrested and faces several charges for allegedly squatting for at least seven months in a home valued at nearly $2 million and filing a fake deed and paperwork with the county, according to police.”

Rismedia - “Home Prices Could Drop in Fall” (9-1-11)

“With an uptick in June, home prices in major U.S. cities have recorded three consecutive months of gains. But the glimmer of improvement is almost certainly seasonal in nature, real estate experts say, and prices could begin to fall again when the slower sales season begins.”

Looking Back:

One year ago, the MBA’s weekly survey showed mortgage applications increased 2.7% the week of August 30, 2010. SB1275, the foreclosure/modification bill, was rejected by congress in a 36-30 vote. Fannie Mae’s new rule regarding appraisal cutting took effect on this day. Construction spending decreased 1 percent in July 2010, according to the Commerce Department.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Sources:
Freddie delinquencies tick up for first time in 10 months
Increased mortgage delinquencies could adversely affect RMBS: S&P
July Pending Home Sales
Ben Bernanke Provides No Relief
C.A.R sends letters to top lenders re: short sales
Gov. Jerry Brown proposes job creation plan for California

Today’s News Synopsis:

In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big events. Bloomberg reported Ben Bernanke has still not provided any good news for the economy.  Zillow recenlty estimated that the prices of homes declined over 4% last June.  Delinquencies are still on the rise, however, foreclosures and distressed sales are decreasing.  Banks are expeted to do more short sales with houses as these are expected to sell more quickly.

In The News:

Housing Wire – “GDP growth revised down to 1% for 2Q” (8-26-11)

“Gross domestic product — or output of all goods and services — grew at an annual rate of 1% in the second quarter, compared to growth of 0.4% in the first quarter, the Commerce Department said Friday.”

Realty Times - “Foreclosures Slow but Delinquencies Rise” (8-26-11)

“A new report indicates that the number of delinquent mortgage borrowers climbed in the second quarter. That’s people who have missed at least one payment, according to the Mortgage Bankers Association (MBA).”

DS News - “California Distressed Sales Decline, Realtors Push for Streamlined Shorts” (8-26-11)

“California’s pending home sales dipped in July, as did the share of distressed property sales, according to a report released by the state’s Realtor group this week.”

Bloomberg - “New York Buildings Face Storm Damage as Property Managers Plan for Irene” (8-26-11)

“Hurricane Irene may cause seriousdamage to some New York City buildings as it threatens to bring surging floodwaters and strong winds that may spur flying debris, property managers said as they prepared for the storm.”

Housing Wire – “August consumer sentiment drops to 3-year low” (8-26-11)

“Consumer sentiment in the U.S. plunged to the lowest level in three years and to one of the lowest level recorded by the Thomson Reuters/University of Michigan survey.”

Realty Times - “Mortgage Rates Follow Bond Yields Higher for the Week” (8-26-11)

“Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates moving higher from the previous week’s record lows as Treasury bond yields moved higher and other housing data showed improvement. However, the 5-year ARM did decline to 3.07 percent thereby setting a new all-time record low.

Realtor Magazine – “Banks Agree to More Short Sales” (8-26-11)

“Banks are agreeing to more short sale transactions, and short sales are taking less time to sell, which is helping to clear large inventories of distressed properties more efficiently, says James J. Saccacio, RealtyTrac CEO, in releasing new housing data this week.”

Housing Wire - “Zillow estimates 4.3% decline in home prices” (8-26-11)

“Standard & Poor’s is likely to report a 4.3% decline in June home prices year-over-year and a 1.2% increase from the previous month when it releases its June Case-Shiller Home Price Indices study next Tuesday, Zillow said Friday.”

Los Angeles Times - “Corporate profits increase as GDP remains sluggish” (8-26-11)

“The nation’s gross domestic product may be growing at just a crawl, but corporations aren’t doing so badly in this economy, according to data released from the Bureau of Economic Analysis.  Corporate profits increased in the second quarter, as did the amount of cash businesses had available for investments, as taxes decreased.”

DS News - “Radar Logic to Propose Plan to Address Government REOs” (8-26-11)

“Radar Logic plans to publish a response to the government’s proposal to sell pools of foreclosed homes to investors to rent.”

Bloomberg – “Bernanke Doesn’t Signal More Stimulus” (8-26-11)

“Federal Reserve Chairman Ben S. Bernanke said the central bank still has tools to stimulate a recovery that has been weaker than forecast while sticking to his view that growth will pick up.”

Looking Back:

The MBA’s second quarter survey showed the delinquency rate for mortgage loans on residential properties dropped to 9.85 percent. Freddie Mac reported that interest rates dropped AGAIN to 4.36%. According to CoreLogic, 23 percent of residential homes with mortgages were in negative equity at the end of the 2nd quarter of 2010. Barclays Capital claims existing home sales decreased 30% in July 2010.

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.

Sources:
Foreclosure activity falls to 44-month low
Jobless claims hover around 400,000 for third week
Mortgage Rates for 30-Year U.S. Loans Decline to Nine-Month Low
Housing Affordability up in California with home price decline
Rates on 15-Year Fixed Lowest Ever Recorded
Home Prices Decline in Almost Three-Fourths of U.S. Metropolitan Areas
Fed to Keep Interest Rates Low until 2013
Goldman Sachs Says AIG, Fannie, Freddie Threatening to Sue Over Mortgages
Realogy calls for White House housing summit
Dow plunges after S&P downgrade
Demand for real estate rentals rises, homeownership rate drops

Today’s News Synopsis:

This week’s video gives the news of the week in the world of real estate and other big events. Bloomberg reported again today that foreclosure filings are at the lowest they have been in 4 years.  DS News reported that mortgage fraud has still remained a problem over the last five quarters despite a 2.3% decrease this year.  Barclay’s said the best locations for building new homes is Atlanta and Phoenix. 

In The News:

Housing Wire – “Fully excused second-lien mortgages spike in June” (8-12-11)

“Servicers participating in the Home Affordable Modifications Program extinguished more than 1,000 second-lien mortgages in June, according to Treasury Department data.”

DS News - “National Mortgage Fraud Remains Relatively Steady, Shifts Regionally” (8-12-11)

“On a national level, mortgage fraud risk has declined 2.3 percent over the year but has remained relatively steady for the last five quarters, according to Interthinx’s Second-Quarter Mortgage Fraud Risk Report.”

Realty Times - “Market Concerns Produce New Record Low Mortgage Rates” (8-12-11)

“Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates continuing to decline with the 30-year fixed averaging 4.32 percent marking a new low for 2011, and the 15-year fixed, 5-year ARM, and 1-year ARM averaging new all-time record lows this week.”

Inman - “Portal displays Fannie, Freddie, FHA REOs” (8-12-11)

“The U.S. Department of Housing and Urban Development has unveiled a Web-based mapping tool displaying the location of all foreclosed properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) — nearly half of all “real estate owned” (REO) properties in the U.S.”

Los Angeles Times - “Consumer confidence at lowest point since 1980, report says” (8-12-11)

“Consumer confidence in August took a swan dive to its lowest level in three decades.  Even as they pushed retail sales up 0.5%, Americans were the most pessimistic they’ve been since May 1980, according to a preliminary index of sentiment created by Thomson Reuters and the University of Michigan.”

Housing Wire - “SEC ready for new whistleblowers” (8-12-11)

“The new Securities and Exchange Commission whistleblower program officially launched Friday, giving new protection and rewards to those who come forward with information.”

San Francisco Chronicle - “Foreclosure filings near a 4-year low” (8-12-11)

“U.S. foreclosure filings dropped 35 percent last month to the lowest level in almost four years as lenders and state and federal agencies increased efforts to keep delinquent borrowers in their homes, RealtyTrac Inc. said.”

Bloomberg - “Phoenix and Atlanta Will Be Best New-Home Markets in U.S., Barclays Says” (8-12-11)

“Phoenix, where foreclosures have surged and prices plummeted since the U.S. housing bubble burst, and Atlanta are the best potential markets for the sale of newly built homes, Barclays Capital said in a report today.”

DS News - “Heavy Distress Sends Las Vegas Home Prices to 15-Year Low” (8-12-11)

“Sales of foreclosed REO homes and short sales continue to dominate the Las Vegas market. These distressed sales made up nearly 70 percent of the region’s home resales in June, according to the research firm DataQuick.”

Realtor Magazine - “Weak Appraisals Hamper Home Sales, Experts Say” (8-12-11)

“Weak appraisals are “driving down the real estate market” and “borders on buffoonery,” says William Maxwell, an expert in finance and professor at Southern Methodist University’s business school, who has seen his own Dallas property fluctuate in appraised value by $60,000 in just a year.”

Looking Back:

Freddie Mac claimed the average rate for 30-year fixed loans fell to 4.44 percent during the week of August 9, 2010. RealtyTrac reported that national foreclosures increased 3.6% from the previous month. Initial unemployment insurance claims increased the week of August 9, 2010 by 2,000 to 484,000, according to the Department of Labor. Foreclosure Radar announced notices of default filings in California slipped 4.8% from June 2010, and notices of trustee sale fell 18.9%.

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.

Bloomberg reported that Goldman Sachs will possibly be facing a lawsuit from three big organizations, Fannie Mae, Freddie Mac, and AIG, regarding securities related to mortgages.  The recent Housing Scorecard for July showed a slight improvement in home prices but continued negativity for foreclosures and distressed homes.  Obama received a request from Realogy Corp. to hold a White House Summit on housing.   

In The News:

Housing Wire - “Rise in REO value cuts Freddie Mac holding expenses by 90%” (8-9-11)

“Freddie Mac reported $27 million in expenses for maintaining and reselling houses repossessed through foreclosure in the second quarter, a mere fraction of the $257 million the previous period.”

DS News - “The Future of Mortgage Interest Deduction Remains Unstable” (8-9-11)

“After much hype about the possibility of an elimination of the mortgage interest deduction (MID) as part of the debt ceiling agreement, the August 2 agreement included no such provision.  However, the new law does call for major deficit reductions – $2.4 trillion total – to go into place over the next several years.”

Bloomberg - “Goldman Sachs Says AIG, Fannie, Freddie Threatened to Sue Over Mortgages” (8-9-11)

“Goldman Sachs Group Inc. (GS) said American International Group Inc. (AIG), Fannie Mae and Freddie Mac are among companies that have threatened to take legal action
against the firm over mortgage-related securities.”

Rismedia - “July Housing Scorecard Shows Home Improvement” (8-9-11)

“U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the July edition of the Obama Administration’s Housing Scorecard—a comprehensive report on the nation’s housing market.  The latest housing data offer continued mixed signals as home prices improved slightly but showed continued strain from foreclosures and distressed homes.”

Inman - “Realogy calls for White House housing summit” (8-9-11)

“Realogy Corp. has sent a formal request to President Obama calling for a ‘White House Summit on Housing’.”

Los Angeles Times - “Feds sue Goldman Sachs over credit union losses” (8-9-11)

“Federal regulators have filed the fourth in a series of about 10 planned lawsuits against banks that sold questionable mortgage-related securities to big credit unions that subsequently failed.”

Housing Wire – “CitiMortgage rebuilds executive team for global push” (8-9-11)

“CitiMortgage, the home loan origination and servicing division of Citigroup (C: 31.82 +13.85%), restructured its lineup of executives and is planning how to spread its Global Mortgage Community
to various regions beyond the U.S.”

CNN Money - “Housing recovery slips out of sight” (8-9-11)

“Any glimmer of hope that the housing market will stage a recovery in the upcoming months has vanished, thanks to the recent spate of bad economic news that has been making headlines over the past several weeks.”

NAHB - “NAHB Announced Call for Entries for the 2012 National Sales & Marketing Awards” (8-9-11)

“New home sales and marketing professionals are encouraged to submit entries for the 2012 National Sales and Marketing Awards, sponsored by the National Association of Home Builders (NAHB)
National Sales and Marketing Council.”

Rismedia - “Second Quarter Commercial/Multifamily Mortgage Lending Up 107 Percent” (8-9-11)

“Second quarter 2011 commercial and multifamily mortgage loan originations were 107 percent higher than during the same period last year and 52 percent higher than the revised figures for the first quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.”

Looking Back:

The percentage of American single-family homes with mortgages in negative equity decreased by 1.8% from the first to second quarter of 2010.  Freddie Mac requested $1.8 billion in federal aid after a $6 billion loss in the second quarter of 2010. Freddie Mac’s single-family inventory rose by 84.2% and its multifamily inventory doubled from 2009. PIMCO feared the U.S. would be entering a period of deflation, and JPMorgan Chase expressed concerns that our financial system may crash in 2015.

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.

In the wake of the U.S. credit rating being dropped, stocks decreased and the Dow is now below 11,000, the lowest it has been since November.  Bloomberg reported Bank of America was sued by AIG in regards to false information regarding mortgage-bond investments.  Inman reported rentals are increasing while homeownership is decreasing.   

In The News:

CNN Money - “Stocks Plunge Following S&P Downgrade” (8-8-11)

“U.S. stocks plunged deep into the red on Monday as fearful investors faced the news that the United States had lost its coveted “AAA” credit rating.”

Mortgage Bankers Association - “MBA Hires Brian Hartman to be Associate Vice President of Marketing” (8-8-11)

“David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), today announced the appointment of Brian Hartman as Associate Vice President of Marketing. In this role, he will help develop, execute and manage MBA’s direct marketing programs.’“

Bloomberg - “AIG Plans to Sue Bank of America Over Losses Tied to Mortgage Underwriting” (8-8-11)

“American International Group Inc. (AIG), the bailed-out insurer, sued Bank of America Corp. over $10 billion in losses on mortgage-bond investments. The bank dropped 16.5 percent in New York trading.”

DS News - “Servicers’ Policies on Foreclosures in Bankruptcy Courts Being Examined” (8-8-11)

“Eleven mortgage servicers recently received letters from two senators inquiring about their policies regarding foreclosures in bankruptcy courts.”

Inman - “Demand for real estate rentals rises, homeownership rate drops” (8-8-11)

“In the teeter-tottering relationship between rental housing and homeownership, demand for rentals stayed up in the second quarter of 2011 while homeownership remained static, according to residential vacancy and homeownership data released by the U.S. Census Bureau at the end of July.”

Housing Wire – “Freddie Mac narrows loss in 2Q” (8-8-11)

“Freddie Mac swung to a $2.1 billion loss in the second quarter following a profit in the first quarter.  But Freddie narrowed its loss from the $4.7 billion loss it recorded in the year-ago period.”

Realty Times - “Real Estate Outlook: Market Continues to Struggle” (8-8-11)

“Will a change to the mortgage interest deduction threaten a housing market recovery? This is the message from the National Association of Realtors® (NAR). “As the leading advocate for housing and homeownership, NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy,” says NAR Chief Economist Lawrence Yun. “The MID facilitates home ownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working middle-class families”.”

Bloomberg - “Bulk Buying Would Ease Home Crisis, Morgan Stanley Analysts Say” (8-8-11)

“Encouraging investors to buy foreclosed homes in bulk would help shrink the U.S. housing surplus, stabilize property prices and provide affordable rentals, Morgan Stanley (MS) housing analysts said in a report today.”

Rismedia - “June Prices Still in Red; Northeast Booms” (8-8-11)

“National average home prices in June were still 7.9 percent below a year ago, which was the height of the boomlet spawned by the tax credit. However, prices are still up 4.1 percent over the first quarter.”

Housing Wire – “Mortgage credit growth drops 4% over last year” (8-8-11)

“Credit conditions across the United States remained mixed in July, with growth in new mortgage credit slipping 4% in July compared to year-ago levels, according to a new report from CreditForecast.”

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.

Bloomberg believes the housing market is recoving at a slower pace due to tighter restrictions and higher standards set by the government.  On a positive note, Inman reported an increase of 6.7% in rental prices, and Realty Times reported mortgage rates have remained the same and housing prices have shown a slight increase.  In other news, the Republicans are introducing a bill to merge Fannie Mae and Freddie Mac into one corporation.   

In The News:

Bloomberg - “Housing Recovery Stymied by Government” (7-6-11)

“Sue Stamper, a business owner in Sacramento, California, wants to buy a home. After mortgage- financiers Fannie Mae and Freddie Mac imposed the strictest loan standards in more than a decade, she doesn’t qualify.”

Los Angeles Times - “Treasury’s holdings of mortgage-backed securities drop below $100 billion as sell-off continues” (7-6-11)

“The Treasury Department said Wedneday it had recovered about 65% of the $225 billion it spent to purchase mortgage-backed securities to help stabilize the housing market during the financial crisis as the government continues to slowly sell off its holdings.”

Inman - “National rental prices climb in June” (7-6-11)

“Rental listing prices nationwide rose 6.7 percent year-over-year in June, according to a report from real estate search site HotPads. ”

DS News - “Washington Mutual Reaches $208.5 Million Settlement” (7-6-11)

“Washington Mutual Inc.‘s former executives, underwriters, and auditor reached a $208.5 million settlement in a class-action lawsuit by investors.”

The Wall Street Journal - “Bill Calls for Fannie, Freddie Merger” (7-6-11)

“A California Republican is set to introduce a bill as soon as Wednesday to merge Fannie Mae and Freddie Mac and restructure the company into a government-held corporation.”

Housing Wire - “Obama administration pressures banks to reduce mortgage principal” (7-6-11)

“The Obama administration is putting more pressure on banks to help underwater borrowers by reducing the principal on current home loans.”

Realty Times - “Mortgage Rates Remain Steady as Home Prices Improve” (7-6-11)

“Over the past week, sparks of good news indicating a step in the right direction for the economic recovery kept mortgage rates steady and still at their lowest for 2011. For the first time in eight months, U.S. home prices showed a slight increase as reported by Case Shiller Home Price Indices.”

Inman - “Lenders warned not to discriminate against women on maternity leave” (7-6-11)

“A report in the New York Times that suggested mortgage lenders had discriminated against women taking maternity leave has resulted in a settlement with Houston-based Cornerstone Mortgage Co. and charges against mortgage insurer Mortgage Guaranty Insurance Corp. (MGIC) for alleged violations of the Fair Housing Act.”

The Wall Street Journal - “Sellers Brace for New Mortgage Caps” (7-6-11)

“The federal government is readying its first retreat from the mortgage market, with the size of loans eligible for government backing set to decline in October.”

Housing Wire – “Treasury to reward servicers for quicker mortgage modifications” (7-6-11)

“The Treasury Department will pay mortgage servicers more for modifying loans in an earlier stage of delinquency and less the longer the process takes, according to guidance released Wednesday.”

Looking Back:

One year ago, Lender Processing Services reported the national mortgage delinquency rate increased to 9.2% in May 2010. Reis reported national office vacancies increased by 0.1 percent in the second quarter of 2010 to 17.4 percent. The former CEO of Irvine Co. believed the housing and commercial real estate market would be rocky for the next year or two due to the volume of underwater loans. The former secretary of labor under President Clinton, Robert Reich, believed the U.S. economy would have a very slow recovery and experience a double dip..

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.

Washington Mutual and other defendants agreed to pay $208.5 million to settle a lawsuit involving money lost in the 2008 financial crisis.  RisMedia reported a decline in foreclosure sales ever since the addition of new foreclosure standards put into place during last year’s Robogate Scandal.   According to Bloomberg, credit scores have been improving, having risen 696 points in May, the most it’s been in four years. 

In The News:

Housing Wire - “Researchers forsee soft landing from jumbo loan limit drop” (7-5-11)

“Lowering the conforming loan limits in October will still leave room for the government-sponsored enterprises and the Federal Housing Administration to fulfill their housing finance missions, according to separate research notes from Capital Economics and George Washington University.”

San Francisco Chronicle - “Borrowers sue over apparent loan mod mishaps” (7-5-11)

“Campusano is one of two named plaintiffs in a proposed class-action lawsuit alleging breach of contract by Bank of America NA and subsidiary BAC Home Loans Servicing LP.  The suit, which was filed in Los Angeles federal court because BAC is located in nearby Calabasas, is among a growing number of legal complaints accusing banks of disregarding what should be binding agreements to reduce the monthly mortgage payments of troubled borrowers. ”

Bloomberg – “Best Consumer Credit Scores Since 2006 Reveal Lending Rebound Across U.S.” (7-5-11)

“The average U.S. credit score — a predictor of the likelihood lenders will be paid back — rose to 696 in May, the highest in at least four years, according to Equifax Inc., a provider of consumer-credit data.  The ratio of consumer-debt payments to incomes is the lowest since 1994, and delinquencies have dropped 30 percent in two years, Federal Reserve data show.”

RisMedia - “Foreclosure Sales Plummet inMay” (7-5-11)

“There are significantly fewer foreclosure sales today than there were before foreclosure moratoria were put into place during the Robogate scandal last fall and foreclosure sales are declining.”

Housing Wire – “Washington Mutual settles class-action case for $208.5 million” (7-5-11)

“Washington Mutual and several co-defendants settled a class-action lawsuit for $208.5 million filed by shareholders who lost money in the 2008 financial crisis.”

Inman - “Chase, Wells Fargo lead in HAFA short sales” (7-5-11)

“JPMorgan Chase and Wells Fargo are pursuing short sales more aggressively than other loan servicers participating in the government’s Home Affordable Foreclosure Alternatives (HAFA) program, according to the latest figures released by the Treasury Department.”

DS News - “Default Risk in Reverse Mortgage Sector Prompts Lender Exodus” (7-5-11)

“Reverse mortgage businesses accounted for a bigger share of mortgage-related casualties during the first half of 2011.”

The Wall Street Journal - “Moody’s Gives Banks Greek Debt Warning” (7-5-11)

“Banks rolling over some of their Greek debt into new instruments may have to take impairment charges, Moody’s Investors Service said Tuesday, in another setback for efforts to involve private
bondholders in a new international bailout.”

Housing Wire - “Fully extinguished second liens under HAMP hard to come by” (7-5-11)

“Mortgage servicers participating in the Home Affordable Modification Program fully extinguished 1,524 second lien mortgages through May, led by one servicer in particular.”

Inman - “2011 seen as ‘turning point’ for home prices” (7-5-11)

“More than half of economists, real estate experts and investment strategists polled by MacroMarkets LLC in June said they now expect national home prices to hit a
bottom sometime in 2011 and remain stable through 2015.”

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.