1.2 Million Homeowners Came Out of Negative Equity in 2014



Today’s News Synopsis:

Commercial/Multifamily Mortgage Debt by 1.9% ($48.9 billion) to $2.64 trillion, the fastest growth rate in 8 years.  Home prices in Southern California increased by about 8.4% month-over-month, while home sales decreased by 2.7% month-over-month.  CoreLogic reported 1.2 million homeowners came out negative equity in 2014.

In The News:

Los Angeles Times“Southern California home prices rise, sales fall in February” (3-17-15)

“Spring has not sprung just yet in Southern California’s housing market.  Home prices in the six-county Southland in February stayed about the same as they have been for nine months, while sales volume drooped compared to this time last year. That’s according to new figures out Tuesday from CoreLogic DataQuick.”

Housing Wire – “JPMorgan to buy $45B in Ocwen MSRs” (3-17-15)

“A name was finally given to the buyer of $45 billion of Ocwen (OCN) mortgage-servicing rights, which was first reported on at the beginning of March.”

NAHB“Housing Starts Fall 17 Percent in February” (3-17-15)

“Nationwide housing starts dropped 17 percent to a seasonally adjusted annual rate of 897,000 units in February, according to newly released data from the U.S. Commerce Department.”

Bloomberg“California’s Housing Costs Endanger Growth, Analyst Says” (3-17-15)

“California’s high housing costs threaten the state’s economy as workers increasingly struggle to afford a roof over their heads, the state Legislative Analyst’s Office said in a report released Tuesday.”

Mortgage Professional America – “Daily Market Update: High rents freeze out new homebuyers” (3-17-15)

“A new report reveals that renting is becoming less affordable in many parts of the United States. The National Association of Realtors (NAR) said the gap between rents and incomes is widening to “unsustainable levels” and is calling for more building to ease the pressure on demand.”

OC Housing News“Will Millennials move to the suburbs and buy houses?” (3-17-15)

“The Millennial generation is larger than the Baby Boomer generation, and Millennials are entering the stage in their lifecycles when people typically buy homes; therefore, the biggest component of housing demand over the next 20 years will likely be Millennial buyers.”

Housing Wire – “Experian: More homeowners going back to paying their mortgage” (3-17-15)

“The first mortgage default rate dropped for the first time since July 2014 after months of steady increases, the February S&P/Experian Consumer Credit Default Indices report said.  The first mortgage default rate decreased two basis points to 1% from the previous month, and is significantly down from 1.23% a year ago.”

Realty Trac“Will Google Disrupt The Mortgage Marketplace?” (3-17-15)

“When it comes to mortgages everyone gets the idea that borrowers should shop around and let lenders battle for their business. Such shopping largely doesn’t happen, but a looming new player in the mortgage comparison game may change that.”

Mortgage Professional America“What areas have the highest and lowest down payment averages?” (3-17-15)

“Home buyers who purchased a single-family home or condo in 2014 put 14% down, translating into an average $32,141, according to the latest data from RealtyTrac.  The real estate information firm’s report analyzed nearly 1.5 million purchase loans were included in the analysis in 386 counties nationwide.”

Housing Wire“CoreLogic: More than 1 million homeowners regained equity in 2014” (3-17-15)

“Some 1.2 million borrowers regained equity in 2014, bringing the total number of mortgaged residential properties with equity at the end of Q4 2014 to approximately 44.5 million or 89% of all mortgaged properties, according to CoreLogic (CLGX).”

Mortgage Bankers Association“Commercial/Multifamily Mortgage Debt Outstanding Grew at the Fastest Pace Since 2007” (3-17-15)

“Total commercial/multifamily debt outstanding stood at $2.64 trillion in the fourth quarter of 2014, an increase of $48.9 billion, or 1.9 percent, over the third quarter, according to data collected by the Mortgage Bankers Association (MBA).”


Bruce Norris of The Norris Group will be speaking at the 2015 Women in DS Conference from Sunday-Tuesday, May 3-5.

Bruce Norris of The Norris Group will be holding his Norris Group Property Buying Bootcamp Tuesday, May 5 through Thursday, May 7

Bruce Norris of The Norris Group will be speaking at the IVAOR Real Estate Market Update on Wednesday, May 6.


Looking Back:

Builder confidence increased only slightly this month to 47 according to the latest index report by the NAHB.  California was facing a lawsuit for using money meant to aid homeowners to pay off its own state debt.  Due to equity holdings increasing by $2.1 trillion to $10 trillion the previous year, 4 million homeowners were out of negative equity despite the still sluggish economy.


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.

Copyright: Image from www.flickr.com/photos/jakerust/





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