The Norris Group Real Estate News Roundup 5/27/11

Sources:
Housing Affordability Rises to Record Level, Tight Financing Continues to Constrain Sales
U.S. Home Price Index Fell 2.5% in First Quarter of This Year
Troubled banks made up about 12 pct of total in Q1
Housing Affordability Rises to Record Level, Tight Financing Continues to Constrain Sales
U.S. Home Price Index Fell 2.5% in First Quarter of This Year
Troubled banks made up about 12 pct of total in Q1
Mortgage delinquencies inch higher
California creating mortgage fraud task force
Mortgage defaults do not predict poor credit behavior: TransUnion
Watch for strategic defaulters, economists suggest after studying Countrywide data

Today’s News Synopsis:

Two major lenders admitted to improperly foreclosing on active-duty military without court orders. The NAR claims pending home sales decreased 11.6% in April. According to Standard & Poor, the delinquency rate among loans from state HFAs reached 7.5% in the firs 2010.

In The News:

San Diego Union Tribune – “Lenders to pay $22M for foreclosures on military” (5-27-11)

“Two major U.S. lenders have agreed to pay more than $22 million to settle allegations that they improperly foreclosed on active-duty military without court orders, the Justice Department announced Thursday.”

NAR – “April Pending Home Sales Drop After Two Monthly Gains” (5-27-11)

“The Pending Home Sales Index,* a forward-looking indicator based on contract signings, dropped 11.6 percent to 81.9 in April from a downwardly revised 92.6 in March. The index is 26.5 percent below a cyclical peak of 111.5 in April 2010 when buyers were rushing to beat the contract deadline for the home buyer tax credit.”

Bloomberg – “Foreclosure Deal May Give Banks Options” (5-27-11)

“Under the proposal, Bank of America Corp. (BAC), Wells Fargo & Co. (WFC), JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and Ally Financial Inc. would pay penalties and pledge billions of dollars in relief to home buyers, one of the people said, asking not to be named because the talks are private. Firms may fulfill obligations to borrowers over time, choosing among options such as reducing loan principal, cutting fees or paying moving costs, the people said.”

Housing Wire – “Fannie Mae issuance drops to lowest level since January 2009” (5-27-11)

“Fannie Mae issued $34.5 billion in guaranteed mortgage-backed securities in April, down from $54 billion one month ago and the lowest level since January 2009, when the government-sponsored enterprise issued $21 billion.”

Housing Wire – “Delinquencies on state HFA mortgages hit record high” (5-27-11)

“The delinquency rate among loans from state housing finance agencies reached 7.5% at the end of 2010, up a full percentage point from the previous quarter and the highest rate on record, according to Standard & Poor’s.”

Housing Wire – “Another collapse in home prices would hinder bank earnings: S&P” (5-27-11)

“Another downturn in home prices could stifle the solid recovery banks have made in the past two years, cutting into profit margins, derailing credit and threatening ratings, according to Standard & Poor’s credit analyst Devi Aurora.”

Housing Wire – “HAMP disappoints most homeowners, housing counselors say” (5-27-11)

“The GAO received 500 responses to its October 2010 survey of roughly 130 housing agencies regarding HAMP. Nearly 400 responded to the question about how the borrowers they worked with felt about the program. Only 9% of the counselors said borrowers had a ‘positive’ experience, according to the GAO report released Thursday.”

Looking Back:

One year ago, 6,462 residential property owners in San Francisco applied for temporary property tax breaks. Freddie Mac reported the average U.S. rate for a 30-year fixed mortgage fell to 4.78 percent for the week. Statistics from FHFA showed the average interest rate on conventional 30-year FRM with a principal of $417,000 or less increased to 5.12% in May.

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.