Mid-Tier Homes are Housing Recovery’s Achilles Heal

 

Today’s News Synopsis:

 

According to both the U.S. Census Bureau and the Department of Commerce, spending on construction increased 0.1% in June.  At the same time, the number of borrowers considered underwater is showing signs of decrease at at faster rate than usual.  The latest report from Clear Capital showed the biggest weakness in helping the economy recover is mid-tier houses.

 

In The News:

DS News “Third Circuit Court Rules in MERS’ Favor in Pennsylvania County Recording Case” (8-3-15)

“The U.S. Court of Appeals for the Third Circuit on Monday ruled in the favor of MERSCORP Holdings that the company was not duty-bound by the Pennsylvania recording statute to record all land conveyances, according to an announcement from MERS.”

Mortgage Professional America – “Morning Briefing: Home prices in Texas hit all-time high” (8-3-15)

“Home prices in Texas hit their highest-ever level in the second quarter of this year while sales have continued to see high demand. Median prices have increased by 8.1 per cent to $200,000 with average prices up 9 per cent to $258,786 in the second quarter of 2015 compared to a year earlier.”

Bloomberg – “Manufacturing in U.S. Cooled in July From Five-Month High” (8-3-15)

“Manufacturing in the U.S. cooled in July from the highest level in five months, a sign of fitful progress in the industry.  The Institute for Supply Management’s index fell to 52.7 from a June reading of 53.5 that was the fastest since the start of the year, a report from the Tempe, Arizona-based group showed Monday.”

Housing Wire“Construction spending rises 0.1% in June” (8-3-15)

“Construction spending during June 2015 was estimated at a seasonally adjusted annual rate of $1,064.6 billion, 0.1% (±1.5%) above the revised May estimate of $1,063.5 billion, the U.S. Census Bureau of the Department of Commerce reported Monday.”

DS News “Goldman Sachs Agrees to $270 Million RMBS Settlement with Pension Funds” (8-3-15)

“Goldman Sachs has agreed to pay approximately $270 million to resolve claims that it sold billions of dollars worth of faulty residential mortgage-backed securities (RMBS) to investors, according to multiple media reports.”

Mortgage Professional America – “CFPB tells lenders to back off MSAs” (8-3-15)

“The Consumer Financial Protection Bureau wants mortgage lenders to back off using marketing services agreements.  The agreements are a common practice in the industry, but the CFPB says they’re too easy to abuse. The agency has gone after several lenders in recent months, issuing fines for alleged kickbacks and other MSA-related violations, according to HousingWire.”

DS News “Number of Underwater Borrowers is Declining at an Accelerated Pace” (8-3-15)

“The number of borrowers who have negative equity (“underwater” on their mortgages), declined by approximately one million (a 26 percent drop) in the five-month period from January 1, 2015, until the end of May, according to Black Knight Financial Services’ June 2015 Mortgage Monitor released Monday.”

Housing Wire “The housing recovery’s great big weak spot: Mid-tier homes” (8-3-15)

“The July market report from Clear Capital shows that trends have been manifesting across price tiers, and it shows that the biggest segment of housing — mid-tier priced homes — is doing the worst.”

Mortgage Professional America – “Mortgage servicers play critical role in how U.S. foreclosures affect communities” (8-3-15)

“Mortgage servicers can play a critical role in whether communities experience the negative effects of foreclosure sales, according to a new study.  The study, conducted by Abt Associates senior analyst Hannah Thomas, found that the sales practices favored by mortgage servicers generally favor investor-buyers.”

DS News – “Industry Analyst Defends Massive Pay Hike for Fannie Mae and Freddie Mac CEOs “ (8-3-15)

“The debate continues as to what the compensation level for the CEOs of Fannie Mae and Freddie Mac should be since FHFA Director Mel Watt announced on July 1 that the top executives at the GSEs would each be receiving raises from $600,000 annually to about $4 million.”

Bruce Norris of The Norris Group will be giving his California Real Estate Market Update with TIGAR on Thursday, August 13.

Bruce Norris of The Norris Group will be giving his California Real Estate Market Update with Tri-Counties Association of Realtors on Friday, August 14.

Bruce Norris of The Norris Group will be giving his Secrets to Becoming Wealthy with Tony Watson on Tuesday, August 18.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Copyright: Image from www.flickr.com/photos/59937401@N07/

 

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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