The Norris Group Real Estate News Roundup 12/03/10

Resources:
Foreclosure Freeze Chills Home Buying
Jobless claims continue bouncing around with 6.3% rise last week
Consumer confidence in Nov. hits 5-month high
Freddie Mac to suspend foreclosure evictions this holiday season
Fed made $9 trillion in emergency overnight loans
Fed data reveal wide scope of loan action during financial crisis
Fannie, Freddie Defend Foreclosures Amid Criticism

Today’s News Synopsis:

New Federal regulations on real estate appraisals have been released. FHA has chosen to leave the loan limit at $729,750 for 2011. Some builders are experiencing a 15 to 25 percent decrease in construction costs. The Bureau of Labor Statistics reports the unemployment rate increased to 9.8%.

In The News:

Wall Street Journal – “Deficit Plan Fails to Win Panel Support” (12-3-10)

“The president’s U.S. deficit commission received the backing of a majority of its 18-strong panel, but fell short of the 14 votes needed to possibly trigger congressional votes on its recommendations.”

Housing Wire – “Regulators set final guidance on appraisals” (12-3-10)

“Federal regulatory agencies released final guidance Thursday on how financial institutions will conduct real estate appraisals, the first nationwide update since 1994.”

Housing Wire – “Nonfarm payrolls add 39,000 jobs in November,unemployment rate up to 9.8%” (12-3-10)

“Nonfarm payroll employment rose slightly last month but considerably lower than most analysts were projecting adding just 39,000 jobs, and the unemployment level increased to 9.8%. The Labor Department’s Bureau of Labor Statistics said employment in most industries changed little during November although temporary workers and the health care sectors continue to see jobs gains while retailing shed another 28,0000 jobs during the month.”

Housing Wire – “FHA loan limit ceiling unchanged for 2011” (12-3-10)

“The Federal Housing Administration released approved loan limits on mortgages it would insure in 2011, leaving the ceiling unchanged at $729,750. The Economic Stimulus Act of 2008 and the Housing and Economic Recovery Act of 2008 raised the FHA loan-limit ceiling to help stabilize a shaky housing market. The national floor remains unchanged as well at $271,050.”

Housing Wire – “Bair wants mortgages modified to mitigate losses before starting foreclosure” (12-3-10)

“Bair said servicing agreements need to give servicers the authority to attempt to mitigate losses in a timely manner and modify loans to address reasonably foreseeable defaults before putting the mortgage into the foreclosure process.”

Bloomberg – “Toll Brothers Deposits Rise 10% as Mortgage Rates Increase, Chairman Says” (12-3-10)

“Toll Brothers Inc., the largest U.S. luxury-home builder, saw deposits increase 10 percent compared with a year earlier in the past two weeks as mortgage rates began to rise, Chairman Robert Toll said.”

Orange County Register – “Builders benefit from cost savings” (12-3-10)

“Builders say construction costs are down 15 to 25 percent. That translates into an average cost of $100,000 to $140,000 for just the ‘sticks and bricks’ (without land) for a modest, 2,000-square-foot house.”

Realty Times – “Let it Shine, It’s Not Just Paint Color That Counts” (12-3-10)

“Many new tract homes are painted using a flat paint. While that may look nice at first, it can be very difficult to clean and instead of wiping off walls, you may find you have to touch them up with paint more frequently. Thankfully there are some other paint finishes that look great and are a bit more durable and easy to clean. The eggshell and low-sheen finishes put off a higher shine but they seem to last longer, stay cleaner, and are all around easier to maintain.”

Looking Back:

One year ago, Fannie Mae increased its minimum borrower credit score to 620. According to Lender Processing Services, loans were deteriorating 3 times faster than they are being approved. The average interest rate for 30-year, fixed rate mortgages declined to 4.7%

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 200 podcasts in our free investor radio archive.