Today’s News Synopsis:
Mortgage application volume increased 14.6% this week. All 50 state attorney generals are now involved in an investigation into lenders that filed faulty foreclosure affidavits. The FHFA is urging GSEs to accelerate the foreclosure process once the AG reviews are over. Foreign investors are planning to purchase large amounts of commercial property.
In The News:
Mortgage Bankers Association – “Mortgage Refinance Applications Jump as Rates Continue to Fall in Latest MBA Weekly Survey” (10-13-10)
“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 8, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 14.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 14.8 percent compared with the previous week.”
NAR – “NAR Says Families Will Suffer if Foreclosure Freeze Continues” (10-13-10)
“Thousands of first-time and move-up buyers who hoped to make a foreclosed property their new home now face uncertainty, anxiety and possibly remorse as they worry that closing on their desired property could be in jeopardy. For many, the dream of homeownership could turn into agony if their home purchase is indefinitely delayed by a moratorium on foreclosures declared by some banks, the National Association of Realtors® said today.”
Los Angeles Times – “California to join multistate inquiry of foreclosures by banks” (10-13-10)
“California will join a multistate investigation into whether banks violated laws by cutting corners while foreclosing on homes as the Obama administration made clear Tuesday that it would not support a nationwide moratorium.”
Housing Wire – “Jaime Dimon: ‘Almost no chance we made a mistake’ with foreclosures” (10-13-10)
“JPMorgan Chase said new processes are being put in place to ensure it fulfills all procedural requirements going forward. ‘There’s almost no chance we made a mistake,’ Jaime Dimon, CEO of JPMorgan Chase, said during the conference call.”
Housing Wire – “It’s official: All 50 state AGs to review foreclosures” (10-13-10)
“Alabama Attorney General Troy King announced Wednesday he is joining the other 49 AG offices in a nationwide investigation into lenders that filed faulty foreclosure affidavits.”
Housing Wire – “St. Louis Fed economist questions wisdom of more quantitative easing” (10-13-10)
“An economist at the Federal Reserve Bank of St. Louis wonders if additional large-scale securities purchases by the Fed will produce the desired effects of driving down interest rates, boosting employment, and preventing deflation.”
Housing Wire – “FHFA urges GSE servicers to accelerate foreclosure process after reviews” (10-13-10)
“On Oct. 1, DeMarco said Fannie Mae and Freddie Mac are working with their third-party servicers to identify any loans that may be have been foreclosed improperly. On Wednesday, FHFA urged servicers to proceed on foreclosures as quickly as possible after all foreclosure alternatives have been exhausted.”
Bloomberg – “Investors Target U.S. Commercial Properties After Drop in Values, DTZ Says” (10-13-10)
“Commercial-property investors are preparing to spend more in the U.S. next year after more than two years of declining values, DTZ Group Plc said. Funds and investment companies increased the capital available for deals in the Americas by 54 percent since December to $97 billion, the London-based real-estate broker said in a report today. Most of this will be used for U.S. transactions.”
Bloomberg – “Banks to Shift From `Extend and Pretend’ in Real Estate Loans, Survey Says” (10-13-10)
“Lenders will shift toward amending commercial mortgages next year instead of extending maturities, leading to increased sales of distressed real estate, according to a survey of almost 900 property professionals. More than 63 percent of those surveyed said they expect maturing loans to be modified, while 7.1 percent said loans will continue without changes to defer losses, a practice known as ‘extend and pretend.’ About 16 percent of respondents said real estate with maturing loans will be foreclosed on and put on the market, and almost 14 percent said properties will be sold by borrowers, PricewaterhouseCoopers LLP said in a report today.”\
One year ago, Fitch reported that 60 percent of borrowers from 06 to 07 had negative equity and owed more than their homes are worth. Interthinx’s Mortgage Fraud Index estimated that fraud decreased by 4 percent from Q1 to Q2 of 2009, but increased by 7 percent from Q2 of 2008. Statistics from MDA DataQuick showed that Southern California home sales increased by 5 percent from October of 2008.
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 170 podcasts in our free investor radio archive.