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California Real Estate Headline Roundup

Posts Tagged ‘Washington Mutual’

The Norris Group Real Estate News Roundup 7/6/11

Wednesday, July 6th, 2011

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 7/5/11

Tuesday, July 5th, 2011

Today’s News Synopsis:

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.

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The Norris Group Real Estate News Roundup 12/20/10

Monday, December 20th, 2010

Today’s News Synopsis:

Bank of America Merrill Lynch stated that house owners may have to default their underwater mortgages in order to take care of their debt.  Last October, pending home sale prices rose 10.4%, according to Realty Times.   Prices on commercial property rose for the second month in a row according to Moody’s Investors Service and are expected to continue to fluctuate, according to Moody’s Investors Service.  According to the National Association of Home Builders/Wells Fargo Housing Market Index, consumer cofidence in newly-built houses declined 4 points from November in the West.   In other news, Moody’s Investors Service reported that prices of commercial property increased 1.3% in October.

In The News:

Housing Wire - “Households likely to deleverage debt with underwater mortgage defaults: Report” (12-20-10)

“Bank of America Merrill Lynch analysts said the most likely way households will deleverage roughly $1 trillion in excess debt is through the default of more underwater mortgages.  Home prices in the Standard & Poor’s/Case-Shiller 20-city index have dropped 28.6% from the peak in the summer of 2006. This has led to more than 10.8 million homes, or 22.5% of the entire U.S. market in negative equity as of the third quarter, according to the analytics firm CoreLogic.”

Realty Times- “Real Estate Outlook: Existing Pending Sales Rise” (12-20-10)

“Existing pending sales may have jumped a staggering 10.4 percent in October, the strongest pace since April of this year, but interest rates are on the rise. According to Frank Notehaft, chief economist for Freddie Mac, investors moved from U.S. Treasury debt to European markets — where improvements are being made to the debt crisis. This in turn caused ‘bond yields to rise and mortgage rates along with them,’ he says.”

Housing Wire - “Recent CMBS modifications, sales prompt Trepp to warn investors” (12-20-10)

“Loan modifications and note sales in the commercial real estate space have analysts at Trepp warning investors to be vigilant with their trading. According to the data firm’s latest report, two specific CMBS deals incurred severe losses when they were modified or sold, and wiped out several investor classes.”

San Francisco Chronicle – “U.S. Commercial Property Prices Rise, Moody’s Says” (12-20-10)

“U.S. commercial property prices rose 1.3 percent in October from the previous month, the second consecutive monthly gain, Moody’s Investors Service said. The Moody’s/REAL Commercial Property Price Index climbed 3.2 percent from a year earlier, Moody’s said in a report today.”

Housing Wire – “Commercial real estate investors hungrier for more risk in fourth quarter: PwC” (12-20-10)

“Commercial real estate investors see slight but promising signs in the U.S. economy during the fourth quarter and are more willing to look for riskier buying opportunities going forward, according to the PricewaterhouseCoopers Korpacz Real Estate Investor Survey.”

Fortune – “Riding the unlikely commercial real estate rebound” (12-20-10)

“For years commercial real estate has been billed as the next big train wreck. So why are some investors shouting all aboard?  A slowly recovering economy is part of it, though no one expects to make a quick killing on loans and securities tied to office buildings, hotels, shopping malls and the like. The bigger drivers of this rally are the low rates pushing investors to reach for yield by taking on more risk, and the wide open junk bond market that has allowed lots of companies once left for dead to refinance loans and trudge forth.”

Orange County Register – “Western builder confidence drops” (12-20-10)

“Homebuilder confidence weakened in the West again.”

Housing Wire – “Moody’s expects commercial real estate prices to remain ‘choppy’” (12-20-10)

“The price of commercial property has been fluctuating all year and prices rose for the second-consecutive month in October with a 1.3% increase, according to Moody’s Investors Service.  The ratings agency said the gains in September and October followed significant declines the prior three months. For the first 10 months of the year, prices rose five times and fell five times”

RisMedia – “Foreclosures Intrigue Home Buyers Looking for Deals” (12-20-10)

“In a survey released last week, conducted by Harris Interactive, on behalf of Trulia and RealtyTrac, nearly half, or 49% of U.S. adults admitted they were at least somewhat likely to consider buying a foreclosed property.
That’s up from 45% in May.”

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 4/13/10

Tuesday, April 13th, 2010

Today’s News Synopsis:

MDA DataQuick reports 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. Schwarzenegger signed a bill allowing taxpayers to be exempt from paying for forgiven mortgage debt. In 2008 and 2009, the income needed to buy a median-priced home decreased in 93 percent of U.S. markets. According to IAS, national house prices fell 0.6% in February.

In The News:

DQNews - “More Incremental Gains for Southland Real Estate Market” (4-13-10)

“A total of 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 33.3 percent from 15,359 in February, and up 5.0 percent from 19,506 in March 2009, according to MDA DataQuick of San Diego.”

Sacramento Bee – “California won’t tax forgiven home debt” (4-13-10)

“Gov. Arnold Schwarzenegger signed legislation Monday to spare thousands of Californians big tax bills on mortgage debt forgiven in 2009. The bill, signed days before Thursday’s tax filing deadline, will eliminate state taxes on forgiven mortgage debt from 2009 through the end of 2012. The U.S. government has already done the same.”

Los Angeles Times – “Washington Mutual created ‘mortgage time bomb,’ Senate panel says” (4-13-10)

“Before Washington Mutual collapsed in the largest bank failure in U.S. history, its executives knowingly created a ‘mortgage time bomb’ by making subprime loans they knew were likely to go bad and then packaging them into risky securities, a congressional investigation has found. In some cases, the bank took loans in which it had discovered fraudulent activity — such as misstated income by borrowers — and rolled them into mortgage securities sold to investors without disclosing the fraud, according to the report released Monday by the Senate’s Permanent Subcommittee on Investigations.”

Inman - “The workers homeownership left behind” (4-13-10)

“Between 2008 and 2009, the income needed to purchase a median-priced home fell in 93 percent of the markets studied, while the income needed fell a median of 9.1 percent, the study said.”

Housing Wire – “Top Four Banks Ready to Write-Down Second Liens” (4-13-10)

“In a hearing today before the House Financial Services Committee, representatives from Bank of America (BAC: 18.67 +0.05%), Citi (C: 4.62 -0.43%), JP Morgan Chase (JPM: 45.87 -0.59%) and Wells Fargo (WFC: 32.15 -0.83%) report that they do not feel efforts to satisfy second lien obligations represent a conflict of interest between the desires of investors and the needs of distressed borrowers. As a result, they are willing to write-down second liens if first lien lenders are doing the same. All four lenders are participants in the Second Lien Modification Program, known as 2MP, which is struggling to gain traction.”

Housing Wire – “Seven Months of House Price Declines Keep IAS Index Near 2004 Levels” (4-13-10)

“National house prices fell 0.6% in February, the seventh consecutive month of decline, keeping prices ‘only fractionally higher’ than levels seen in 2004, according to collateral valuation firm Integrated Asset Services (IAS). Although February’s decline is smaller than recent months — like 0.7% in December — the IAS house price index is now down 25% from its peak in July 2007.”

Housing Wire – “New Inspection Report Helps REO Holders Market Homes to FHA Borrowers” (4-13-10)

“Altisource Portfolio Solutions (ASPS: 25.61 -0.70%), a real estate portfolio services provider, introduced a new inspection report with increased data and repair information on subject properties. According to the company, while a traditional property inspection report outlines the general condition of a property, the new report includes information on the existence and condition of appliances, carpets or other flooring, and whether electrical systems are functioning.”

Bloomberg - “Mortgage-Bond Yields That Guide Loan Rates Fall to 3-Week Low” (4-13-10)

“Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds fell about 0.01 percentage point to 4.44 percent as of 3:02 p.m. in New York, according to data compiled by Bloomberg. That’s down from an eight-month high of 4.67 percent on April 5.”

Looking Back:

One year ago, distressed properties represented 25 percent of U.S. home sales. Jeff Greene confessed to his 2006 investment estimation that money could be quickly made by buying credit default swaps on mortgage backed securities. Experts warned that FHA loans would be the next biggest risk in the U.S. housing market.

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