In a big news story, foreclosures are at their lowest level since 2007, according to RealtyTrac.  Another thing at a record low right now is 30-year fixed mortgage rates, which are now at almost 4%.  Realty Times reported that Freddie Mac extended the forbearance for mortgage servicers.

In The News:

Bloomberg – “Home Seizures May Jump 25% This Year” (1-11-12)

“Banks may seize more than 1 million U.S. homes this year after legal scrutiny of their foreclosure practices slowed actions against delinquent property owners in 2011, RealtyTrac Inc. said.”

CNN Money - “Foreclosures fall to lowest level since 2007″ (1-12-12)

“Foreclosure filings and repossessions fell to their lowest level since 2007 last year.  Total filings, including default notices and bank repossessions were down 33% for the year to 2.7 million, according to RealtyTrac, the online marketer of foreclosed properties.”

Realty Times - “Longer Forbearance Option Helps Temporarily Struggling Homeowners” (1-12-12)

“If you are struggling to pay your mortgage, but can see a light at the end of the tunnel, don’t overlook the forbearance option.  Freddie Mac recently gave mortgage servicers of its loans authority to provide you with up to a year of forbearance – as much as four times the previous term.”

Bloomberg - “Mortgage Rates for 30-Year Fixed U.S. Loans Decline to Record Low of 3.89%” (1-12-12)

“Rates for 30-year U.S. mortgages fell to the lowest level on record after Federal Reserve Chairman Ben S. Bernanke urged lawmakers to do more to revive housing.”

Housing Wire – “FICO warns mortgage, student loan delinquencies may rise” (1-12-12)

“Bank risk professionals believe Americans who are over leveraged on mortgage, student loan and credit card debt remain a risk to the broader economy, according to a FICO report.”

Inman - “Trulia offers agents insights into consumer behavior” (1-12-12)

“Trulia today launched a new subscription-based lead-generation service that provides real estate professionals with insight into the search preferences of visitors to the popular listing portal.”

Bloomberg - “Fed Detection of Housing Weakness in August 2006 Triggered Rate-Rise Pause” (1-12-12)

“Federal Reserve officials detected growing weakness in the U.S. housing market in August 2006, deciding to pause after a two-year campaign raising the benchmark interest rate.”

Housing Wire – “NeighborWorks invests $1.3 billion into rental homes” (1-12-12)

“NeighborWorks America, which finances community development around the country, invested more than $1.3 billion in rental housing over its fiscal year ending Sept. 30.”

DS News - “Foreclosures in Most of Top 20 Metros Decline From Past Two Years” (1-12-12)

“With Atlanta as the exception, all of the metro areas on RealtyTrac’s top 20 list for foreclosure rates in 2011 demonstrated declines in foreclosures from both of the previous two years.”

Hard Money Loan Closed

Riverside, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $92,000 on a 3 bedroom, 2 bathroom home appraised for $153,000.

California Real Estate Investor Events:

The Norris Group posted a new event. Bruce Norris will be speaking at the Apartment Owners Association-Discover Wealth Strategies for 2012 Los Angeles on January 12, 2012.

The Norris Group will be at the Women’s Council of Realtors on January 18, 2012.

Looking Back:

According to CoreLogic, in November 2010 the price of homes fell once again for the fourth month in a row.  Moody’s Investor Services reported a 79% increase in delinquncies for commercial mortgage-backed securities.  The Mortgage Banker’s Association also reported that applications for mortgage refinancing increased that week 2.2%.  Mortgage News Daily gave an update that the conventional 30-year fixed mortgage increased again to 4.875%.

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.

Top story in the news is the sales of California homes dropped 11% last month from 38,975 in June to 34,695.  In other news, Housing Wire reported that a case against MERS that sparked much controversy is going to the Supreme Court.  Consumers fears of the market and unstable economy have led to a decrease in mortgage rates.

In The News:

Housing Wire – “California home sales decline 11% in July” (8-17-11)

“California home sales fell 11% in July with 34,695 homes sold last month compared to 38,975 in June, real estate data firm DataQuick said Wednesday.“

Inman - “MLSs, Realtor associations pitch in $7.5M for patent license” (8-17-11)

“Multiple listing services and Realtor associations now have blanket protection from legal claims by a company that holds several patents on location-based Internet search techniques, after the National Association of Realtors raised $7.5 million in licensing fees by Tuesday’s deadline.”

Bloomberg - “Fortress Joins LBO Firms Seeking Real Estate Funds as Fees Under Pressure” (8-17-11)

“Fortress Investment Group LLC (FIG), Colony Capital LLC and Starwood Capital Group LLC are among a record number of private-equity firms raising real estate funds, according to people familiar with the process, driving down fees in a business reeling from earlier losses.”

Realty Times - “Mortgage Rates Sink Lower With Unsteady Markets” (8-17-11)

“Another active week occurred with mortgage rates sinking lower as uneasiness continues to create unsteady markets. Concerns over economic stress around the globe has markets reacting unpredictably each day of the week and have resulted in sliding mortgage ratesrket.”

DS News - “HUD Offers Discounted REOs to Storm Victims” (8-17-11)

“HUD has announced it will sell almost 90 REO properties to public housing authorities in central Alabama and Joplin, Missouri — areas suffering the impact of this spring’s tornadoes.”

NAHB - “NAHB Applauds EPA Decision on ELGs” (8-17-11)

“The Environmental Protection Agency’s decision today to reconsider the imposition of a nationwide cap on how much sediment can be part of the stormwater draining from a construction site is a nod to the importance of sound science – and a big victory for home buyers, according to the National Association of Home Builders (NAHB).”

Housing Wire - “Case against MERS reaches Supreme Court” (8-17-11)

“A controversial case challenging the ability of Mortgage Electronic Registration Systems to foreclose on a California man was filed with the Supreme Court Monday, making it the first major MERS case to reach the nation’s highest court.”

Mortgage Bankers Association - “Refinance Applications Increase in Latest MBA Weekly Survey” (8-17-11)

“Mortgage applications increased 4.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 12, 2011.”

CNN Money - “Fed dissenters speak out” (8-17-11)

“Three Federal Reserve officials are starting to speak out about why they disagree with Chairman Ben Bernanke on the central bank’s latest policy move.  The Federal Reserve decided last Tuesday to leave interest rates exceptionally low until at least 2013 — a dramatic move considering the Fed doesn’t typically give hints, let alone outright time frames, for monetary policy that far in advance.”

Realtor Magazine – “Borrowers Opt for Shorter Loan Terms” (8-17-11)

“Record-reaching low interest rates have prompted more home owners to shorten the terms of their mortgages. Thirty-four percent of refinancers changed their loan to a 20- or 15-year mortgage during the first quarter — the highest level in seven years, Freddie Mac reports.”

Looking Back:

Statistics from MDA DataQuick showed 18,946 new and resale homes were sold in Southern California in July 2010. Frank Nothaft of Freddie Mac announced that refinancing activity had accounted for over 80% of conventional loan activity. National housing starts increased by 7.1 percent in July 2010, according to the NAHB. The MBA expressed concerns that recent policy changes restricting seller concessions went too far and would damage the industry.

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.

As of July, fewer homes are being built, having decreased 1.5%.  The Obama Administration is continuing to review policies to help the housing market, including continued involvement by the government.  According to recent data released by Trulia, real estate purchases are actually cheaper than rental in most major cities in the U.S.

In The News:

Housing Wire – “U.S. mortgage delinquency rate grew 2.4% in July” (8-16-11)

“The U.S. mortgage delinquency rate rose between June and July, while the nation’s foreclosure pre-sale inventory rate edged down slightly.  The delinquency rate for U.S. mortgages more than 30 days past due but not in foreclosure hit 8.34% in July, up 2.4% from the previous month, Lender Processing Services (LPS: 18.54 -0.38%) said in its monthly First Look Mortgage Report”

Bloomberg - “Housing Starts in U.S. Weaken as Construction Stagnates; Permits Decline” (8-16-11)

“Builders began work on fewer homes in July, indicating residential real estate is failing to contribute to U.S. growth two years into an economic recovery.  Housing starts fell 1.5 percent to a 604,000 annual rate, in line with the median forecast of economists surveyed by Bloomberg News, from June’s 613,000 pace that was less than previously estimated, Commerce Department figures showed today in Washington.”

RisMedia - “Industry Opinions Weigh In On Extended Forecast for Short Sales” (8-16-11)

“Short sales will remain strong for the next several years as foreclosure inventories timelines grow even longer, according to the chief operating officer of Equator, a software platform for default servicers.”

DS News - “Obama Administration Continues to Review Housing Policy Proposals” (8-16-11)

“While the Obama administration continues to consider options for the future of housing finance, two mainstream media outlets reported Tuesday that the administration is looking into a plan that would retain major government involvement in the future housing market.”

Inman - “Buying real estate a better deal than renting in 74% of major US cities” (8-16-11)

“Buying real estate continues to be cheaper than renting in the vast majority of major U.S. cities, according to a quarterly rent vs. buy index from real estate search and marketing site Trulia.”

San Francisco Chronicle - “California home sales slowed from June to July” (8-16-11)

“A real estate tracking firm is reporting that sales of California homes slowed last month.  San Diego-based DataQuick said Tuesday that nearly 35,000 new and resale houses and condos were sold statewide in July. That represents an 11 percent decline from June and 1.4 percent decrease from July 2010.”

Los Angeles Times - “Bay Area home sales dip in July” (8-16-11)

“Home prices dipped in July in the Bay Area as potential buyers and sellers took time out to ponder dreary economic reports and a budget standoff in Washington, a real estate information service said.  Sales fell more than usual from June -– especially for homes above $500,000 -– but edged higher than July last year, according to DataQuick.”

Bloomberg - “Bank of America Said to Weigh Foreclosure Deal That Allows New York Probe” (8-16-11)

Bank of America Corp. (BAC) may settle a state and federal probe of foreclosure practices in a deal that lets New York proceed with an inquiry into securitizations, said two people with direct knowledge of the talks.”

Housing Wire - “Ally Financial braces for punitive AG settlement” (8-16-11)

“Ally Financial (GJM: 22.1001 -1.69%) warned investors of a probable monetary fine from the 50 state attorneys general foreclosure investigation, but could not nail down when or how large the penalty would be.”

Realtor Magazine - “Freddie Offers Cash Incentives for Buying Condos” (8-16-11)

“Freddie Mac’s HomeSteps unit is offering cash to buyers willing to purchase one of its foreclosed condos that has been lingering on the market. HomeSteps is hoping to unload some of its high inventory of foreclosed condos through the incentive program, known as HomeSteps Condo Cash.”

Looking Back:

According to the NAHB, builder confidence fell for the 3rd straight month in August 2010. The California Homebuilding Foundation reported the housing industry’s economic output had decreased by nearly 80% since 2005. New rules were released which restricted an originator from receiving compensation based on the interest rate or other loan terms of the mortgage. Michael Carliner of Harvard University believed that the decrease in mortgage rates would not offset the effect of decreasing home values on home buyer pessimism.

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 30-year mortgage rates are as low as 4.39%, the lowest they have been in 8 months.  Bank of America is being sued again, this time by Walnut Place and other investors who said Countrywide Financial Corp/Bank of America broke agreements regarding residential mortgages.   Mortgage Bankers Association reported a 107% increase from a year ago in commercial and multifamily mortgages.

In The News:

Bloomberg - “U.S. 30-Year Mortgage Rate Declines to Eight-Month Low of 4.39% on Economy” (8-4-11)

“U.S. mortgage rates for 30-year loans plunged to the lowest level in more than eight months as the nation’s economic recovery showed signs of faltering.”

Mortgage Bankers Association - “Second Quarter Commercial/Multifamily Mortgage Lending Up 107 Percent from Last Year; Up 52 Percent from First Quarter 2011″ (8-4-11)

“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.”

DS News - “Foreign Investors Will Not Save U.S. Housing But May Help Some States” (8-4-11)

“The combination of declines in dollar value and home prices is making U.S. homes very affordable for some foreign buyers, according to a Capital Economics report released Thursday.  However, foreign demand is not likely to bring recovery to the American housing market in the near future, according to the report.”

Housing Wire – “Investors charge ahead with another reps and warranties case against BofA” (8-4-11)

“Bank of America (BAC: 8.83 -7.44%) is facing another lawsuit over misrepresentations Countrywide Financial Corp. allegedly made when selling residential mortgages to a Trust in which The Bank of New York Mellon (BK: 23.72 -3.77%) served as Trustee.”

Inman - “CIVIX sues Trulia for alleged patent infrigement” (8-4-11)

“A company that holds several patents on location-based Internet search techniques has sued listings portal Trulia, claiming the company infringed on two of them.”

Mortgage Bankers Association - “MBA Backs Menendez/Isakson Bill to Extend Loan Limits” (8-4-11)

“David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA) today supported the introduction of S. 1508, the Homeownership Affordability Act of 2011, a bill that will allow the Federal Housing Administration (FHA), Government Sponsored Enterprises (GSE) and the Veterans Administration (VA) to insure home loans at their current maximum levels until December 31, 2013.”

DS News - “Mortgage Rates Drop to Lowest of the Year” (8-4-11)

“Freddie Mac released the results of its weekly rate survey Thursday, showing mortgage rates have dropped sharply over the past few days amid falling bond yields and signs of a weaker-than-expected economy.”

Housing Wire - “Mortgage insurance stocks roiled by jittery market” (8-4-11)

“The stock value of major mortgage insurers plummeted with the Dow Jones Thursday, with The PMI Group (PMI: 0.4101 -53.40%) dropping more than 50%.”

Realty Times - “‘Robo-Signing’ Moves into New Mortgages, Refinancing” (8-4-11)

“Make sure your mortgage documents are signed by qualified mortgage industry employees who’ve verified your documents and aren’t forging someone else’s signature.  Nearly a year after federal regulators imposed a moratorium on foreclosures to stop “robo-signing” and other questionable foreclosure procedures, robo-signing behavior continues to flourish.”

Inman - “Market Leader aquires SharperAgent” (8-4-11)

“Market Leader says it’s acquired Denver-based SharperAgent and that the two companies “will immediately begin working together” on an integrated software platform for franchisors and real estate brokerages providing lead generation, customer relationship management, social media and blogging integration, online and offline marketing, agent and office websites, and other tools.”

Los Angeles Times- “California attorney general subpoenas CitiGroup over mortgage practices” (8-4-11)

“California State Atty. Gen. Kamala D. Harris has subpoenaed CitiGroup Inc. and its banking subsidiary, CitiBank, ordering the two entities to answer questions regarding the selling and marketing of mortgage-backed securities in the Golden State, a person familiar with the investigation said.”

Rismedia - “Real Estate Trends for the Last Half of 2011 and Beyond” (8-4-11)

“Jason Hartman, creator of the Complete Solution for Real Estate Investors™, discusses current trends in real estate and economist forecast in his “The Investment Real Estate Forecast” report. With the first half of 2011 in the rear view, Hartman’s forecast explains in detail that current government policy is tilted in exactly the opposite direction of factors needed—as monetary expansion and skyrocketing debt continue to finance spending initiatives having little to no impact on the fundamental tenants of innovation and productivity driving long-term economic growth.”

Looking Back:

One year ago, mortgage application volume increased 1.3 percent the week of August 2, 2010, according to the MBA. Large home builders, such as PulteGroup and DR Horton, were claiming a quarterly profit. Analysts expected total payrolls to decline in official Census data which was due Friday, August 6. The American Bankruptcy Institute expressed concerns that consumer bankruptcies might total 1.6 million in 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:

Pending Sales of Previously Owned Homes in the U.S. Increased 2.4% in June
USB Is Sued for Mortgage Losses
Homeownership Falls to Lowest Since 1998
Case-Shiller Index Posts Second Straight Increase
84 Percent of U.S. Metros Post Lower Foreclosure Activity in First Half of 2011
Trulia Launches Social Search, Bringin Word-Of-Mouth Refferals Online for the Real Estate Industry
BofA Donates Then Demolishes Houses to Cut Glut of Foreclosures
Ocwen Financial Offers New Loan Modification Program

Today’s News Synopsis:

In this week’s video, Aaron Norris of The Norris Group gives the news of the week in the world of real estate and other big events. According to Bloomberg, homeownership rates are at their lowest level since 1998.  Wells Fargo and National Urban League are teaming up together to help homeowners who are behind on their mortgage payments

In The News:

Bloomberg- “U.S. Homeownership Rate Hits Lowest Level in 13 Years on Stricter Lending” (7-29-11)

“The U.S. homeownership rate fell to the lowest level since 1998 in the second quarter as stricter lending standards blocked purchases and foreclosures forced people out of their residences.  The ownership rate through June was 65.9 percent, the lowest since the same rate 13 years ago, the U.S. Census Bureau said in a report today.”

Housing Wire - “Fixed-rate CMBS defaults near 13%” (7-29-11)

“Defaults on loans in fixed-rate, commercial mortgage-backed securities continue to grow, with the default rate hitting 12.9% at the end of the second quarter, up 228 basis points from Dec. 31, Fitch Ratings said.”

DS News - “Wells Fargo Teams with National Urban League to Aid Homeowners” (7-29-11)

“Wells Fargo and the National Urban League have released the second edition of ‘The Foreclosure Workbook: The Complete Guide to Understanding Foreclosure and Saving Your Home’.”

Realty Times - “30-Year Fixed-Rate Mortgage Follows Treasury Yields Higher” (7-29-11)

“Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows mortgage changing little for the week amid mixed macroeconomic data. The 30-year fixed averaged 4.55 percent, while the 15-year remained unchanged from its previous week average of 3.66 percent.”

Inman - “Consumers, real estate pros tap shift to rentals” (7-29-11)

“In a sluggish economy, diversification into renting can provide new income streams for both consumers and real estate professionals, according to two speakers at Real Estate Connect Thursday.”

The Wall Street Journal - “Mortgages Hold Steady” (7-29-11)

“Mortgage rates in the U.S. were again little changed over the past week, as readings on the U.S. economy continued to show mixed signals, according to Freddie Mac’s weekly survey of mortgage rates.”

San Francisco Chronicle - “BofA turns bulldozer on glut of abandoned homes” (7-29-11)

“Bank of America Corp., faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer.”

Housing Wire - “Mortgage insurers write $4.8 billion in new business in June” (7-29-11)

“Private mortgage insurers, who are fighting for a place in the future mortgage finance space, wrote $4.8 billion in new insurance on mortgage loans originated in June, up from $3.92 billion in May.”

Realtor Magazine - “To Save Home Values, Bill Asks Banks to Rent Foreclosures” (7-29-11)

“As a glut of foreclosures on the market weighs down home values across the country, a bipartisan bill introduced this week in the House proposes a solution to reducing the high inventories: Rent the properties out.”

DS News - “Community Land Trusts Have Lower Delinquency and Foreclosure Rates” (7-29-11)

“A recent report by the Lincoln Institute of Land Policy found that delinquency and foreclosure rates among owner-occupants living in homes in Community Land Trusts (CLT) were consistently lower than rates among owner-occupants in the market overall.”

Looking Back:

RealtyTrac reported foreclosure filings increased in 75% of the nation’s metro areas during the first 2 quarters of 2010. Statistics from the Department of Labor showed unemployment insurance claims fell by 11,000 the previous week. According to Freddie Mac’s weekly survey, the average rate for a 30-year fixed-rate mortgage decreased to 4.54%. Fiserv predicted that single-family home prices would fall 4.9 percent during 2010-2011.

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 sales for existing homes increased 2.4% in June according to Bloomberg.  However, chief economist for Fannie Mae warned this does not necessarily mean a turn-around in the market.  In other news, despite a huge decrease in foreclosures in 84% of U.S. cities, there are still ten cities with high foreclosure rates and thus not indicating a positive turn in the market.

Housing Wire - “Vacant foreclosures in Ohio forming housing black hole“ (7-28-11)

“Every single vacant, foreclosed property in Ohio is proving to be a black hole that sucks down home prices, sits on the market for significantly longer, blights entire neighborhoods and boggles the mind through the sheer amount of REO volume.”

Bloomberg - “Existing Home Sales in U.S. Rose 2.4% in June” (7-28-11)

“The number of contracts to purchase previously owned U.S. homes unexpectedly rose in June as buyers tried to take advantage of lower prices and borrowing costs.  The 2.4 percent rise in the index of pending home resales followed an 8.2 percent May gain, the National Association of Realtors said today in Washington. Economists forecast a 2 percent drop, according to the median estimate in a Bloomberg News survey.“

NAHB - “Remodeling Activity Slows Under Economic Uncertainty” (7-28-11)

“The remodeling market slipped under pressure from a sluggish economy according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI), which dipped during the second quarter to 43.9 from the first quarter result of 46.5. An RMI below 50 indicates that more remodelers report market activity is lower compared to the prior quarter than report it is higher.”

DS News - “Increase in Pending Sales May Not Indicate Market Upswing” (7-28-11)

“The National Association of Realtors (NAR) released its Pending Home Sales Index Thursday, revealing an increase in pending home sales for the month of June,
marking the third of the last four months that the index has increased.”

Inman - “Trulia launches agent recommendation system” (7-28-11)

“Real estate search and marketing site Trulia today launched an agent recommendation system that incorporates endorsements from Facebook friends.”

Realty Times - “Chase, BofA Offer Modifications Without Homeowner Request” (7-28-11)

“JPMorgan Chase and Bank of America are reportedly modifying loans for borrowers who haven’t asked for help, in some cases slashing mortgage balances in half.  The two major banks were among others recently criticized for mishandling federally sanctioned mortgage modifications and slammed for botching foreclosures.”

NAHB - “Federal Proposal Could Raise Refinance Costs For Nearly 25 Million Homeowners” (7-28-11)

“Nearly 25 million homeowners across the country would face more expensive mortgages if a proposal by federal regulators goes unchanged. A proposal released by six federal agencies to implement credit risk retention provisions included in the Dodd–Frank Wall Street Reform and Consumer Protection Act would require homeowners to have at least 25 percent equity in their homes in order to qualify for a lower-rate “Qualified Residential Mortgage” (QRM) for refinancing.”

Mortgage Bankers Association - “MBA Statement on Debt Ceiling Negotiations” (7-28-11)

“‘The Mortgage Bankers Association is very concerned about the implications to the financial system of the United States if the U.S. defaults on its debt. The likely impact to the financial markets, interest rates, and to every family in America will be costly if the ceiling is not raised. We implore policymakers to act swiftly and find a workable solution, given the short time left, to take this step and not put the credit rating of the United States in jeopardy’.”

The Wall Street Journal - “UBS Is Sued for Mortgage Losses” (7-28-11)

“The federal regulator for Fannie Mae and Freddie Mac on Wednesday sued UBS AG, accusing the Swiss investment bank of costing the two mortgage giants at least $900 million by selling them shaky mortgage-backed securities during the housing market boom.”

Realtor Magazine - “Foreclosures Fall, But 10 Areas Still Hard-Hit” (7-28-11)

“During the first half of the year, foreclosures have dropped in more than 84 percent of U.S. metro areas, RealtyTrac reports. Is this a sign of a turnaround? Not quite, say analysts.”

Looking Back:

Commercial and multifamily mortgage origination increased by 35 percent in the second quarter of 2010. Mortgage application volume decreased 4.5 percent from the previous week, according to the MBA. Freddie Mac reports Americans took out $8.3 trillion in home equity during the second quarter of 2010. The number of foreclosure starts for 2010 was at 1.46m.

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.

A new program from Freddie Mac covers up to 3.5% of a buyer’s closing costs. Foreigners purchased $82 billion in U.S. real estate over the past year. A survey from RealtyTrac and Trulia shows 50% of homeowners and renters do not believe the housing market will recover until 2014.

In The News:

Press Enterprise – “Freddie Mac launches promotion to sell its foreclosed homes” (5-18-11)

“The HomeSteps Summer Sales Promotion is offering to cover up to 3.5 percent of a buyer’s closing costs and a $1,200 bonus to selling agents for initial offers received between May 16, 2011 and July 31 and when escrows close on or before September 30. This offer is good only for homes sold to buyers who plan to live in them.”

Mortgage Bankers Association – “Mortgage Refinance Applications Increase in Latest MBA Weekly Survey” (5-18-11)

“Mortgage applications increased 7.8 percent from one week earlier, according to data from the Mortgage Bankers Association”

Bloomberg - “Institutional Investors Beat REITs as Top Buyers of U.S. Office Properties” (5-18-11)

“Buyers including pension funds, insurance companies and sovereign-wealth funds added a net $1.39 billion to their office-building holdings in the first quarter, compared with $1.1 billion for REITs, according to data from CoStar Group Inc. (CSGP) Their shift to acquisitions signals that, after being net sellers last year, they are beginning to expand their holdings.”

Bloomberg – “Home Purchases in U.S. by Foreign-Born Buyers Increase 24%, Realtors Say” (5-18-11)

“Foreign-born buyers took advantage of falling property prices to purchase $82 billion of U.S. homes over the past year, a 24 percent increase, according to a report by the National Association of Realtors.”

Housing Wire – “SEC rules seek more data, transparency from ratings agencies” (5-18-11)

“The nation’s credit ratings agencies have 60 days to comment on proposed Securities and Exchange Commission rules that would require the companies to implement more internal controls and eliminate conflicts of interest that previously threatened the integrity of ratings on complex financial products.”

Housing Wire – “Demand for architectural design drops in April” (5-18-11)

“The Architecture Billings Index, which indicates construction volume, decreased marginally to 47.6 in April from 50.5 in March, according to American Institute of Architects data released Wednesday.”

Bloomberg – “U.S. Housing May Not Recover Until 2014: Survey” (5-18-11)

“More than half of U.S. homeowners and renters say housing won’t recover until at least 2014, reflecting a deepening pessimism about the real estate market, according to a survey by Trulia Inc. and RealtyTrac Inc.”

Bloomberg – “U.S. Real Estate Delinquencies Top 10% for First Time, Morgan Stanley Says” (5-18-11)

“Delinquencies on commercial mortgages packaged and sold as bonds surpassed 10 percent for the first time last month, according to Morgan Stanley.”

Looking Back:

One year ago, construction firms added 14,000 jobs in April. MDA Dataquick reported sales of new and resale homes totaled 20,299 in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in April. Data from the MBA showed that in the first quarter of 2010, commercial and multifamily mortgage loan originations were 12 percent higher than during the same period last year. The FHA said it would reduce allowable seller concessions from 6 percent to 3 percent.

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 NAR stated that home sales rose in 49 states during the first quarter. A study from the NAHB shows 72.8% of all U.S. homes sold last year were affordable for families earning the national median income. The Financial Crimes Enforcement Network said reports of mortgage fraud reached a record high. Trulia found that third-party syndicators of listings data which does not come from an MLS has an error rate of 21.3 percent for either a listing’s price or status.

In The News:

NAR - “Existing-Home Sales Rise in Most States in First Quarter; Metro Area Prices Mixed” (5-10-11)

“Existing-home sales continued to recover in the first quarter with gains recorded in 49 states and the District of Columbia, while 22 percent of the available metropolitan areas saw prices rise from a year ago, according to the latest survey by the National Association of Realtors®.”

NAHB - “New Data from NAHB Breaks Down Housing Affordability by Race/Ethinicity” (5-10-11)

“The HOI for all races/ethnic groups combined was 72.8 in 2010, meaning that 72.8 percent of all homes sold in the U.S. last year were affordable to families earning the national median income of $64,400.”

Wall Street Journal – “Reports of Mortgage Fraud Reach Record Level” (5-10-11)

“The Financial Crimes Enforcement Network, a Treasury agency, reported 70,472 ‘suspicious activity reports’ related to suspected mortgage fraud, up from 67,507 in 2009, or a 5% increase.”

Sacramento Bee – “Sacramento-area home prices continue their slide” (5-10-11)

“For the eighth straight month home prices dropped when compared to the same month a year prior. The March 2011 median sale price was down 7.5 percent nationwide in March when compared to March 2010. The drop was even more pronounced in the four-county region of Sacramento, Yolo, El Dorado and Placer counties where the median in March was down 10.42 percent year over year.”

Orange County Register – “A good time to buy an investment property?” (5-10-11)

“Before you answer the question as to whether now is a good time for you to purchase income property a few questions: Are you purchasing investment property for equity growth or for income? How long do you think you will hold onto to the property? Are you thinking of buying a single family residence or units?”

Bloomberg - “States Said to Alter Mortgage Accord as Banks, Republicans Balk” (5-10-11)

“U.S. states probing foreclosure practices revised a nationwide settlement proposal after banks and eight Republican attorneys general objected to mortgage loan principal cuts, two people familiar with the talks said. The provision of the original 27-page term-sheet submitted by the states and Justice Department would encourage defaults, the banks and eight attorneys general said”

Inman - “Trulia: Higher error rate in non-MLS sources of real estate listings data” (5-10-11)

“Trulia’s analysis found that third-party syndicators of listings data that did not come from an MLS had an error rate of 21.3 percent for either a listing’s price or status. Real estate professionals submit data to these sources but often don’t return to update their listings, Trulia said.”

Looking Back:

One year ago, Fannie Mae asked for $8.4 billion in government aid. Serious delinquencies among US Alt-A residential mortgage-backed securities (RMBS) declined in April. First American CoreLogic reported that underwater mortgages and borrowers with less than 5% home equity accounted for 28% of all residential properties. Statistics from Zillow showed more than a fifth of U.S. mortgage holders owed more than their homes were worth in the first 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 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 Commerce Department reports construction spending increased 1.4% in March. Mortgage modification completions dropped nearly 20% in the first quarter, according to Hope Now. Maury Harris believes 750,000 to 1 million new households will be created in 2011.

In The News:

Sacramento Bee – “March construction spending rose 1.4 percent” (5-2-11)

“Construction spending rose 1.4 percent in March, the Commerce Department said Monday. It was the biggest advance since last April”

CNN - “Your Home: How to sell in tough times” (5-2-11)

“Many give in to the temptation to list the property above fair market value to see what happens. Big mistake. About a quarter of sellers in the past year initially listed too high and were forced to knock the price lower, according to Trulia.com. Even in cities that have held up well, such as Charlotte, 25% of sellers resort to at least one price cut, and often two.”

Orange County Register – “Slow spring: Home demand off 5%” (5-2-11)

“Demand, the number of new pending sales over the past month, decreased by 5% over the past month, shedding 169 pending sales and now totals 3,189. This year, the height in demand was reached on March 31st with 3,358 pending sales. Two weeks prior, on March 17th, demand had increased to 2,982.”

Housing Wire – “Private mortgage modifications drop 20% in first quarter” (5-2-11)

“Mortgage servicers completed 209,806 private modifications in the first quarter, down 19.7% from the previous period, according to data from the Hope Now alliance.”

Housing Wire – “Freddie Mac provides mortgage forbearance for victims of southern storms” (5-2-11)

“Freddie Mac will provide borrowers affected by recent storms in the South with a forbearance on mortgage payments for up to one year.”

Bloomberg - “New Households Form at Fastest Rate Since ’07 in Resurgent U.S.” (5-2-11)

“Between 750,000 and 1 million new households will be created in 2011, predict UBS Securities LLC’s Maury Harris and IHS Global Insight’s Patrick Newport. That compares with just 357,000 added in the year ended March 2010, the lowest on record, according to the Census Bureau. As employment picks up, new households are likely to rise above the past decade’s average of 1.3 million a year, according to Newport.”

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 CBIA reports total building permits issued during 2010 increased 23% from 2009. Statistics from Trulia show that owning a home is cheaper than renting one in 72% of the largest cities in the United States. Commercial property values rose 0.6% in November, according to Moody’s.

In The News:

Los Angeles Times – “Estimate of mortgage interest tax deduction’s effect on federal deficit is lowered” (1-23-10)

“$88 billion less in revenue losses are now projected over the next three fiscal years — than the committee estimated early in 2010.”

CBIA - “It’s Official: 2010 is Second-lowest Year on Record for Homebuilding in California” (1-24-10)

“CBIA said just 44,601 permits were issued statewide last year for new homes, apartments, condominiums and townhomes, up 23 percent from 2009, but down 31 percent from 2008, which had held the distinction of the second-lowest total on record with 64,962 permits issued. Records began being kept in 1954 with the lowest yearly total set in 2009 with 36,421 permits issued.”

Inman - “Cheaper to buy than to rent in 72% of largest U.S. cities” (1-24-10)

“Despite the rising number of renters across the country, it is cheaper to buy a home rather than rent one in 72 percent of the 50 largest cities in the U.S., according to an index released by real estate search and marketing site Trulia.”

New York Times – “Mortgage Giants Leave Legal Bills to the Taxpayers” (1-24-10)

“Since the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending the mortgage finance companies and their former top executives in civil lawsuits accusing them of fraud.”

Housing Wire – “Moody’s CPPI rose 0.6% for November, down 4.3% since May” (1-24-10)

“The price of commercial property rose 0.6% in November, marking the third-consecutive month of gains following sharp declines for the previous three months, according to Moody’s Investors Service.”

Housing Wire – “Campbell Surveys: Strong distressed property sales bookend robo-signing debacle” (1-24-10)

“First-time homebuyer activity remained relatively strong last month, though still near historic lows, as purchasers rushed to close transactions before interest rates rise further, according to housing industry consultancy group Campbell Surveys. In December, the firm’s HousingPulse distressed property index shows these transactions make up 47.2% of the market, up from 44.5% in November and nearly matching the 47.5% peak reached in September.”

Housing Wire – “JPMorgan: Annual homes sales must average 5.5 million to absorb liquidations” (1-24-10)

“JPMorgan Securities said existing home sales need to average about 5.5 million units a year to absorb a projected 2.25 million to 2.5 million in liquidations.”

Orange County Register – “Demand for O.C. homes jumps 10%” (1-24-10)

“Demand, the number of new pending sales over the prior month, increased by 10% in the past two weeks, adding an additional 194 homes, and now totals 2,154 pending sales. That’s virtually identical to 2009 when it posted 2,146. Last year, there were 393 additional pending sales, but everybody was poised to take advantage of the $8,000 first time home buyer tax. From here, expect demand to continue to improve as the market prepares to enter the spring market, the strongest time of the year for Orange County housing.”

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.