The Norris Group Real Estate News Roundup 7/20/11

Today’s News Synopsis:

As of June, existing home sales are at their lowest they have been in seven months according to Bloomberg.  However, the prices for commercial property increased 6.3% in May according to Moody’s.  Wells Fargo was fined $85 million by the Federal Reserve for producing false information on incomes and pressuring consumers to use subprime loans who were already borrowing prime mortgages. 

In The News:

Housing Wire – “More Americans to exit homeownership” (7-20-11)

“Political deadlock mixed with terrible housing market conditions will eventually turn America into a society of renters, according to the latest Housing Market Insights report from Morgan Stanley (MS: 21.72 +3.53%).”

Bloomberg – “U.S. Existing-Home Sales Unexpectedly Declined in June to Seven-Month Low “ (7-20-11)

“Sales of previously owned U.S. homes unexpectedly declined in June to a seven-month low as the industry struggled to overcome rising unemployment and foreclosures.  Purchases dropped 0.8 percent to a 4.77 million pace, data from the National Association of Realtors showed today in Washington.”

DS News “Distressed Properties Comprise Smalle Share of Declining Home Resales” (7-20-11)

“Foreclosures and short sales made up 30 percent of all existing-home sales in June, according to data released Wednesday by the National Association of Realtors (NAR).”

RisMedia – “Regional News: Housing Trust Funds Receives Federal Grant” (7-20-11)

“A countywide organization that promotes below-market-price housing has received a $600,000 grant from the federal government.   The San Luis Obispo County Housing Trust Fund says it will use the grant, which comes from the Treasury Department, to subsidize housing projects in the county.”

Bloomberg“U.S. Commercial Property Prices Increased 6.3% in May, Moody’s Says” (7-20-11)

“U.S. commercial property prices increased in May for the first time in six months as a rebound in distressed real estate helped boost values, according to Moody’s Investors Service.  The Moody’s/REAL Commercial Property Price Index rose 6.3 percent from April, the largest gain since the measure began in 2000.”

Los Angeles Times “Consumer Financial Protection Bureau gets strong support in poll” (7-20-11)

“Democrats and Republicans in Washington remain sharply split on the new Consumer Financial Protection Bureau. But a new poll from Consumers Union shows that about three-quarters of the public supports it.”

Housing Wire “Fed fines Wells Fargo $85 million for questionable mortgages” (7-20-11)

“The Federal Reserve fined Wells Fargo (WFC: 28.70 +1.02%) $85 million and issued a cease and desist order for allegedly steering prime mortgage borrowers into subprime loans, along with falsifying income information on applications.”

The Wall Street Journal – “Investments Muddy Dirt-Bond Holders” (7-20-11)

“During the boom years, as big housing developments mushroomed throughout the country, developers worked with local governments to raise billions of dollars for roads, sewers and sidewalks through a municipal-debt security known as “dirt bonds’.”

Realty Times – “Mortgage Rates Decline as Economic Data Continues to Influence Investors” (7-20-11)

“As economic data continues to influence investors with their decisions, mortgage rates declined again last week bringing them to their lowest levels of 2011. Freerateupdate.com’s daily survey of wholesale and direct lenders show that conforming 15 year fixed mortgage rates decreased by .125% and are at 3.375%.”

DS News “California Defaults Reach Lowest Rate in Four Years” (7-20-11)

“For the second quarter of 2011, California homes entering the foreclosure process decreased to their lowest rate in four years, according to DataQuick, a San Diego-based company
that tracks nationwide real estate activity.”

Looking Back:

The MBA reported independent mortgage bankers and subsidiaries made an average profit of $606 on each loan they originated in the first quarter of 2010. Statistics from the Commerce Department showed housing starts fell 5% from May 2010. FHA required borrowers to have at least a 580 FICO score to buy a home with a minimum 3.5 percent down payment. First and second mortgage default rates declined to 3.3% and 2.4%, according to Experian.

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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