Today’s News Synopsis:
New home sales continue to hold high at six years with 481,000 properties being purchased last month and having increased by 21% since last July. Mortgage delinquencies decreased again in the fourth quarter by a rate of 5.68%. Fannie Mae and Freddie Mac both posted decreasing profits recently, raising more awareness of additional housing finance reform.
In The News:
Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (2-25-15)
“Mortgage applications decreased 3.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 20, 2015.”
Mortgage Professional America – “Wall Street companies close to reaching major deal with U.S. regulators” (2-25-15)
“Morgan Stanley and Goldman Sachs Group Inc. are close to reaching a deal with federal litigators regarding allegations the two Wall Street companies mislead investors in mortgage bonds that decreased in value during the economic downturn.”
Bloomberg – “Purchases of New Homes in U.S. Hold Near Six-Year High: Economy” (2-25-15)
“New-home sales in January held close to the fastest pace in more than six years, consistent with slow and steady progress that’s been the hallmark of the U.S. housing market since early 2012. Americans purchased 481,000 properties at an annualized rate last month, little changed from the 482,000 pace in December that was the strongest since June 2008, Commerce Department data showed Wednesday in Washington. Since a lull in July, sales of new homes have climbed 21 percent.”
DS News – “Foreclosure Inventory Down Despite Rise in Starts” (2-25-15)
“Foreclosure inventory was way down nationwide year-over-year in January despite a 5.5 percent month-over-month increase in foreclosure starts, according to Black Knight Financial Services’ First Look at January Mortgage Data.”
Housing Wire – “Mortgage Risk Index hits series high in January” (2-25-15)
“At 11.97%, the composite National Mortgage Risk Index for Agency purchase loans, compiled by the AEI’s International Center on Housing Risk, hit a series high in January, up 0.4 percentage point from the average for the prior three months and 0.8 percentage point from a year earlier.”
Mortgage Professional America – “Improving home prices push distressed sales to 7-year low” (2-25-15)
“The share of distressed sales in December reached a seven-year low, according to the latest data from CoreLogic. The data reported distressed sales (REO and short sales) accounted for 12.8% of total home sales nationally in December 2014, a 2.8 percentage point decrease from December 2013, and a 1.2 percentage point decrease from November 2014.”
OC Housing News – “FHA wants to allow banks to make more bad loans” (2-25-15)
“At the most basic level, lenders, realtors, and borrowers inflated a housing bubble because they got everything they asked for. From 2004 to 2006, there were no barriers whatsoever to completely real estate transactions as inventory was abundant, prices were financeable, and buyers were motivated. It was the best of all possible real estate markets.”
Housing Wire - “MBA: Mortgage delinquencies continue decline in 4Q14″ (2-25-15)
“The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 5.68% of all loans outstanding at the end of the fourth quarter of 2014.”
Mortgage Professional America – “Fannie, Freddie declining profits revive push for housing reform” (2-25-15)
“The recent announcement of the declining profits at Fannie Mae and Freddie Mac is reviving previous efforts made by policymakers pushing Congress to move quickly on advancing housing finance reform.”
Hard Money Loan Closed
San Bernardino, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $315,000 on a 10 bedroom, 10 bathroom home appraised for $487,000.
Bruce Norris of The Norris Group will be holding his Norris Group Property Buying Bootcamp Tuesday, March 3 through Thursday, March 5.
Bruce Norris of The Norris Group will be speaking at Coldwell Banker’s 2015 Real Estate Forecast Wednesday, March 4.
Bruce Norris of The Norris Group will be speaking at LA South REIA presenting How to create a $100,000 Payday Per Deal in 2015 on Monday, March 9.
In order to sell off their REO properties, Fannie Mae and Freddie Mac allowed both real estate agents and homebuyers accest to limited-time incentives established through two separate programs. Despite new QM guidelines put in place by the CFPB, risk continued to remain high for mortgages. Katie Reynolds Johnson was chosen as the new general counsel for the National Association of Realtors.
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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