The Norris Group Real Estate News Roundup 11/5/10

Resources:
Trump to California Estate: You’re Fired!
LPS Report Shows Foreclosure Timelines Continue to Stretch
Fannie Mae, Freddie Mac mortgage delinquencies continue to fall
Freddie Mac posts $4.1-billion loss
Nearly half of Freddie Mac mortgage modifications redefault
Homeownership at 66.9% in 3Q, lowest rate since ’99
Ally CEO: We ‘Screwed Up’ and We’re ‘Embarrassed’ over Robo-Signers
Lead AG on foreclosure investigation says inquiry will continue post-election
Foreclosure Freeze Cuts Sales, Supply in Hardest-Hit States
Lenders Told to Disclose Likely Losses from Paperwork Errors, Buybacks
Robert Shiller Sees More Housing Pain Ahead
California expects mortgage-aid program to begin in weeks

Today’s News Synopsis:

The NAR reports pending home sales decreased 1.8% in September. Statistics from the Labor Department show the overall economy added 151,000 jobs last month. According to Fitch Ratings, CMBS delinquencies decreased to 7.7%. Fannie Mae lost $1.3 billion in the 3rd quarter.

In The News:

Wall Street journal – “Hoenig to Realtors: Wean Housing Off Government Intervention” (11-5-10)

“The American public, including aspiring homeowners and those of you employed in the housing industry, might be best served, over time, by reducing or removing these subsidies as part of our national policy”

NAR – “Pending Home Sales Slip but Modest Recovery Expected in 2011” (11-5-10)

“The Pending Home Sales Index,* a forward-looking indicator, slipped 1.8 percent to 80.9 based on contracts signed in September from an upwardly revised 82.4 in August. However, the index remains 24.9 percent below a surge to 107.8 in September 2009 when first-time buyers were jumping into the market to take advantage of the initial deadline for the tax credit last November.”

Bloomberg – “Obama Says Jobs Report Is Encouraging for Recovery” (11-5-10)

“The Labor Department reported that the overall economy added 151,000 jobs in October, exceeding all estimates in a Bloomberg News survey of economists. The increase wasn’t large enough to make a dent in the jobless rate, which held steady at 9.6 percent.”

Housing Wire – “Mortgages from 2006 and 2007 defaulting at rapid pace: S&P” (11-5-10)

“The default rates for mortgages written in 2006 and 2007 are significantly higher than previous vintages, according to Standard & Poor’s.”

Housing Wire – “CMBS delinquencies fall for first time in nearly 3 years” (11-5-10)

“The delinquency rate on loans backing commercial mortgage-backed securities dropped 88 basis points to 7.78% in October, the first drop in 33 months, according to Fitch Ratings.”

Housing Wire – “SEC details whistleblower protection under Dodd-Frank” (11-5-10)

“The SEC rules do less to establish a definition of a whistleblower and more to define what one is not. Dodd-Frank prohibits anyone convicted of crimes related to a corporate violation from receiving any rewards form a case.”

Housing Wire – “S&P assumptions on GSEs need further scrutiny, analyst states” (11-5-10)

“Standard & Poor’s said this week that the total cost of retooling Fannie Mae and Freddie Mac may near $700 billion, but one analyst thinks investors need to scrutinize two core assumptions of the report. Jim Vogel, of FTN Financial, said the rate of losses and reserves Standard & Poor’s calculates is one-and-a-half times the amount the government-sponsored entities have incurred to date”

Housing Wire – “Hoenig reiterates call for end of ZIRP, supports sunsetting GSEs” (11-5-10)

“The president of the Federal Reserve Bank of Kansas City once again called for an increase in the benchmark fed funds rate away from zero to stabilize the economy”

Housing Wire – “Fannie Mae loses $3.5 billion in 3Q” (11-5-10)

“Fannie Mae lost $1.3 billion in the third quarter and asked for another $2.5 billion from the Treasury to cure its net worth deficit.”

Looking Faith:

One year ago, the U.S. Senate signed an extension to the federal tax credit. Commercial and multifamily mortgage loan originations decreased by 12 percent from Q2 to Q3 of 2009. Fannie Mae reported a loss of nearly $20 billion in Q3 of 2009. According to ZipRealty, housing inventory in 27 major U.S. cities decreased by 2.8 percent.

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.