The Norris Group Real Estate News Roundup 7/30/10

Sources:
http://www.govtrack.us/congress/bill.xpd?bill=h111-600
http://maplight.org/us-congress/bill/111-hr-600/357605/total-contributions.table
http://blogs.wsj.com/developments/2010/07/29/popular-zero-down-mortgage-program-makes-comeback/?blog_id=36&post_id=14060
http://www.rurdev.usda.gov/rhs/sfh/brief_rhguar.htm
http://www.rurdev.usda.gov/SupportDocuments/CA%20GRH.pdf
http://money.cnn.com/2010/07/26/real_estate/new_home_sales/?postversion=2010072612
http://www.housingwire.com/2010/07/26/multifamily-rental-demand-catching-up-to-supply-barcap
http://www.bloomberg.com/news/2010-07-27/apartment-rentals-surge-in-u-s-as-foreclosures-rise-job-growth-resumes.html
http://www.housingwire.com/2010/07/27/homeownership-vacancy-rate-level-in-q210
http://www.bloomberg.com/news/2010-07-27/job-cuts-of-500-000-next-year-predicted-for-cities-counties-over-budget.html
http://money.cnn.com/2010/07/29/real_estate/new_face_of_foreclosure

Today’s News Synopsis:

The Commerce Department reports the economy grew by 2.4%. Altos Research predicts home prices will continue to decrease through the rest of the year. According to FinCen, suspicious activity reports for mortgage fraud in 2009 increased by 4% from 2008. Legislation for the Section 502 single-family rural housing program is headed to the President to be signed back into law. The program allows 30-year originations to purchase households or renovate currently owned ones with zero down payment at the time of application.

In The News:

Los Angeles Times – “Economy slows sharply in second quarter” (7-30-10)

“The nation’s economy grew at a modest 2.4% annual rate in the April-to-June period, the Commerce Department said in its first estimate of gross domestic product for the second quarter. That compares with a GDP growth of 3.7% in the first quarter – a figure adjusted up from 2.7% reported earlier. But Commerce officials revised down the growth in the fourth quarter of last year, to 5% from 5.6%, as it did for prior quarters, painting an overall picture of a deeper recession than previous data suggest.”

Housing Wire – “Fannie Mortgage Portfolio Grows 6% on $19bn of Repurchases” (7-30-10)

“Fannie’s book of business include about $19bn of loans purchased from mortgage-backed security (MBS) trusts in June that won’t be reflected as liquidated from MBS until July. Excluding these repurchases, the total book of business would have grown at a compound annualized rate of 0.3% in June. Within the company’s mortgage portfolio, Fannie added $27.6bn in purchases and recorded $6.2bn in sales and $17.2bn in liquidations. Due largely to the $19bn of buybacks, Fannie’s mortgage portfolio grew at a compound rate of 6.3% in June.”

Housing Wire – “Shadow Inventory to Push 2011 Home Prices Lower than ’09: Altos Research” (7-30-10)

“House prices will continue to drop through the rest of the year and will begin 2011 lower than they were in 2009, according to a webinar hosted by Scott Sambucci, vice president of data analytics for Altos Research.”

Housing Wire – “Alleged Mortgage Fraud up 4% in 2009 with LA, Miami in Top Spots” (7-30-10)

“FinCEN notes that suspicious activity reports (SARs) for mortgage fraud in 2009 rose 4% from 2008, and really started speeding up towards the end of the year. Q409 is up 6% from the same quarter one year ago. Further, mortgage loan fraud made up 9% of all SARs filed in 2009, spiking at 11% in Q409.”

Housing Wire – “CMBS Defaults on Track to Break 11% by Year-End: Fitch” (7-30-10)

“Defaults on fixed-rate conduit US commercial mortgage-backed security (CMBS) loans continued at record speeds, on track to reach a cumulative default rate of 11% by year-end 2010, according to credit-rating agency Fitch Ratings. Cumulative defaults rose to 9.48% through June — a 133bp-climb from Q110. This increase is in line with Fitch’s expectation of an 11% cumulative default rate by year-end.”

Housing Wire – “Fed Hikes Mortgage Fee Disclosure Trigger 2% in 2011” (7-30-10)

“The Federal Reserve Board of Governors today raised the dollar amount of mortgage fees that triggers mortgage disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act of 1994 (HOEPA). The Fed raised the trigger 2% to $592, from the current $579, beginning in January 2011. The trigger amount is now 48% higher than the $400 originally set by HOPEA in 1994.”

Housing Wire – “Section 502 May Return with Zero Down Payment Mortgages, 3.5% Guarantee Fee” (7-30-10)

“The National Association of Realtors (NAR) announced Wednesday that legislation for the Section 502 single-family rural housing program under the Department of Agriculture is headed to President Obama’s desk to be signed back into law. The program allows 30-year originations primarily for low-income families to purchase households or renovate the ones they already own with no down payment at the time of application. Loans are guaranteed by the federal government.”

Realty Times – “California gets $700,000 slice of special $1.5 billion homeowner bailout pie” (7-30-10)

“California struck gold, receiving the biggest chunk of a special $1.5 billion federal fund pie for programs that target struggling homeowners in states hardest hit by the housing crash. Earlier this year President Obama announced the $1.5 billion infusion for state housing agencies in Arizona, California, Florida, Michigan and Nevada, where home values have fallen more than 20 percent from peak 2006 and 2007 markets.”

Looking Back:

One year ago, the Labor Department reported the unemployment rate rose to 9.5. The average 30-year mortgage rate increased to 5.25 percent. Inventory levels in Orange County reached the lowest levels in 4 years.

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.