The Norris Group Real Estate News Roundup 8/13/10

Video Blog Sources:

ABC News – “Housing Summit May Yield Fannie and Freddie Clues” (8-12-10) To air on  Treasury website Tuesday.

Sacramento Bee –  “Californias’ Income Falls For First Time Since WWII” (8-11-10)

Los Angeles Times – “Fed to resume buying Treasury bonds” (8-11-10)

Foreclosure Radar Report – www.foreclosureradar.com

Inman – “FHA premium changes pushed to Oct. 4” (8-12-10)

Today’s News Synopsis:

Equity from the boom has now disappeared and many homeowners are deciding not to pay what they owe. Builders are shrinking the size of new projects as fewer consumers want McMansions. Moody’s sees increasing weakness in the commercial market and the U.S. government appears not to be sure how to move forward to avoid the much talked about double dip recession.

In The News:

New York Times – “Debts Rise, and Go Unpaid, as Bust Erodes Home Equity” (8-11-10)

“During the great housing boom, homeowners nationwide borrowed a trillion dollars from banks, using the soaring value of their houses as security. Now the money has been spent and struggling borrowers are unable or unwilling to pay it back.”

RisMedia – “Builders Shrink Homes to Fit Buyers’ Newly Modest Tastes” (8-13-10)

“I do believe the younger generation isn’t looking to build mansions anymore,” Palazzolo said. “They are looking at simpler lives. They aren’t looking for the same houses that the baby boomers were.”

AP – “Homes lost to foreclosure up 6 pct from last year” (8-12-10)

“The number of U.S. homes lost to foreclosure surged in July, another sign lenders are moving quicker to take back properties from homeowners behind in payments. Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, foreclosure listing firm RealtyTrac Inc. said Thursday.”

Market Watch – “Monetary policy in a time of deleveraging” (8-11-10)

“The U.S. economy is on the edge of the cliff, threatening to plunge back into ruinous recession, but the worst part is that Washington won’t do anything to stop it. ”

Bloomberg – “Related News:Opinion · Insurance · Retail .U.S. Is Bankrupt and We Don’t Even Know It: Laurence Kotlikoff” (8-10-10)

“Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills.”

Housing Wire – “Fifth Third Converts 70% of HAMP Trials to Permanent Status” (8-13-10)

“Fifth Third Mortgage Co., the mortgage unit of Fifth Third Bancorp, so far converted 70% of its trial Home Affordable Modification Program (HAMP) plans into permanent modifications.”

Housing Wire – “Moody’s Sees CMBS Delinquency Poised to Rise 9%-11% in 12 Months” (8-13-10)

“Moody’s Investors Service expects the share of commercial mortgage-backed securities loans that are delinquent or in special servicing to continue to rise over the next year. Analysts expect delinquencies to increase by 9% to 11% during the next 12 months with loans in special servicing climbing to about 20%, which would be up from the current 11.3% and 5% a year ago.”

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