The Norris Group Blog

Today’s News Synopsis:

According to the U.S. Labor Department, construction firms added 14,000 jobs in April. MDA Dataquick reports sales of new and resale homes totaled 20,299 in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. Data from the MBA shows 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 will reduce allowable seller concessions from 6 percent to 3 percent.

In The News:

California Builder – “Overall Construction Employment Picture Brightens” (5-18-10)

“Employment numbers in the construction industry continued to show signs of improvement in April, according to figures released earlier this month by the U.S. Labor Department. Construction firms added 14,000 jobs in April, giving the industry a gain of 40,000 jobs since February. Those positive numbers ended a string of nearly three years of employment decreases, thanks in part to jobs created by stimulus-created projects.”

DQNews - “Southern California home sales dip, median price rises from ’09″ (5-18-10)

“Sales of new and resale homes totaled 20,299 in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 0.9 percent from 20,476 in March, and down 1.0 percent from 20,514 for April 2009, according to MDA DataQuick of San Diego.”

Mortgage Bankers Association – “MBA Study: First Quarter 2010 Commercial/Multifamily Mortgage Originations Increase from Year Earlier, Though Levels Remain Low” (5-18-10)

“First quarter 2010 commercial and multifamily mortgage loan originations were 12 percent higher than during the same period last year and 26 percent lower than during the fourth quarter of 2009, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.”

Los Angeles Times – “Economic recovery will be rapid, San Francisco Fed researchers say” (5-18-10)

“Defying some analysts’ predictions of a slow and subpar U.S. recovery, researchers at the Federal Reserve Bank of San Francisco are predicting a rapid economic rebound. Citing growth in both consumer and business spending, economists Justin Weidner and John C. Williams said recovery “is likely to be faster than from the two previous recessions” in a report released Monday.”

The Press Enterprise – “Loan-modification dropouts rise” (5-18-10)

“The Treasury Department’s report Monday was the latest evidence of problems in the administration’s $75 billion program. While officials insist the program is helping the housing market turn around, critics say it is merely delaying an inevitable surge in foreclosures. More than 299,000 homeowners had received permanent loan modifications as of last month, Treasury said. That’s about 25 percent of the 1.2 million who started the program since its March 2009 launch. They are paying, on average, $516 less each month.”

Housing Wire – “FHA Set to Reduce Closing Cost Assistance This Summer” (5-18-10)

“The FHA will reduce allowable seller concessions — the percentage sellers can take from the sales price of a home to fund closing costs — from 6% to 3%. According to an announcement in January, the current level of 6% exposes the FHA to excess risk by creating incentives for appraisers to increase the value of these homes. The change will take place in ‘early summer,’ according to the FHA, but a spokesperson said no specific date has been set.”

Housing Wire – “Ocwen, HomeEq Hold Highest HAMP Conversion Percentage in April” (5-18-10)

“The Treasury Department launched HAMP in March 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. Through April 2010, the servicers have provided nearly 300,000 permanent modifications and started 1.2m three-month trials. Borrowers must make three monthly payments during the trial period before receiving the permanent modification. Servicers give a median price reduction of 36%, saving more than $500 a month.”

Housing Wire – “Housing Starts Up, But Permits Drop in Signal of Future Housing Decline” (5-18-10)

“According to the joint release, privately owned housing starts in April were at a seasonally adjusted annual rate of 672,000. That’s up from the upwardly revised March estimate of 635,000 and is 40.9% above the revised April 2009 rate of 477,000. Housing starts for the single-family sector were at a rate of 593,000 in April, up 10.2% above the upwardly revised March estimate of 538,000. The April rate for buildings with five or more units was 68,000, down 23.6% from March’s upwardly revised estimate of 89,000.”

Housing Wire – “Canceled HAMP Trials Jump 80% in April” (5-18-10)

“As of the end of April 2010, servicers participating in the Home Affordable Modification Program (HAMP) had canceled 277,640 three-month trials since the program launched in March 2009, according to the Treasury Department. It’s an 80% increase from the 155,173 total in the previous month. Participating servicers have converted almost 300,000 trial modifications into permanent status since the Treasury launched HAMP in March 2009. Borrowers must make three monthly payments and submit all documentation during the trial period to receive a permanent modification.”

Bloomberg - “Feldstein Says Falling Permits May Signal U.S. Housing Slump” (5-18-10)

“A decline in U.S. homebuilding permits last month may indicate a renewed housing slump as demand weakens after the expiration of tax credits, Harvard University economics professor Martin Feldstein said.”

Inman - “Top 25 largest brokerages in the U.S.” (5-18-10)

“Online brokerage ZipRealty completed 34.6 percent more transaction sides in 2009 than in 2008, bumping it up to the fifth-largest brokerage ranked by real estate publishing and communications company Real Trends. ZipRealty had previously ranked ninth in transaction sides.”

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