Sources:
http://www.dsnews.com/articles/house-republicans-want-penalties-for-strategic-defaulters-2010-06-17
http://www.housingwire.com/2010/06/09/congress-to-consider-fha-reform-mortgage-insurance-hike
http://www.govtrack.us/congress/bill.xpd?bill=h111-5072
http://www.housingwire.com/2010/06/15/reid-urges-3-month-extension-of-homebuyer-tax-credit
http://www.housingwire.com/2010/06/16/mortgage-defaults-foreclosures-drop-across-california-foreclosureradar
http://www.dsnews.com/articles/fhfa-orders-fannie-freddie-to-delist-stock-from-nyse-2010-06-16
http://www.dsnews.com/articles/fbis-mortgage-fraud-crackdown-expected-to-yield-hundreds-of-arrests-2010-06-14
http://www.fbi.gov/pressrel/pressrel10/financialfraud_061710.htm
http://www.dsnews.com/articles/fitch-projects-steep-re-default-rates-on-hamp-modifications-2010-06-16
Today’s News Synopsis:
Statistics from MDA DataQuick shows 40,965 new and resale houses and condos were sold statewide last month. The state Franchise Tax Board has received applications claiming about 80 percent of the funds allocated for the home buyer tax credit. Mortgage brokers and realtors are complaining that the HVCC has produced low-ball appraisals that have blown up deals, while appraisers argue the change has harmed appraisal quality. A survey from Coldwell Banker Real Estate shows that 52 percent of single homeowners prefer buying in suburb areas.
In The News:
DQNews – “California May Home Sales” (6-18-10)
“An estimated 40,965 new and resale houses and condos were sold statewide last month. That was up 9.3 percent from 37,481 in April, and up 4.9 percent from 39,051 for May 2009. California sales for the month of May have varied from a low of 32,223 in 1995 to a peak of 67,958 in 2004, while the average is 47,024. MDA DataQuick’s statistics go back to 1988.”
San Francisco Chronicle – “First-time home-buyer credit may vanish soon” (6-18-10)
“The state Franchise Tax Board has received applications claiming about 80 percent of the funds allocated for the credit. Although it’s hard to predict, tax board spokeswoman Denise Azimi says the credit could be gone within a few weeks.”
Wall Street Journal – “Realtors, Brokers Target Home-Appraisal Rule” (6-18-10)
“The mortgage-broker and real-estate industries are pushing to have a measure that would kill new home-appraisal rules inserted into pending legislation to overhaul financial-sector regulation. The Home Valuation Code of Conduct, adopted in May 2009 to ensure appraiser independence, bars mortgage brokers and bank loan officers from selecting appraisers. Mortgage brokers and realtors complain that the rules have produced low-ball appraisals that have blown up deals, while appraisers argue the change has harmed appraisal quality.”
Inman – “Singles flock to suburbs” (6-18-10)
“While young Millennials seem to have a preference for suburbs, they’re not the only ones. Singles of all ages are more likely to buy a home in the burbs, according to the results of a survey by national brokerage company Coldwell Banker Real Estate. The company conducted a national online survey of 1,050 single homeowners in April. It found that 52 percent of singles chose to buy in suburbia rather than getting ‘bachelor or bachelorette pads’ in urban or rural areas.”
Housing Wire – “GSEs Plan Chinese Drywall Mortgage Forbearances” (6-18-10)
“Under the authority of its ‘Unusual Hardships’ policy, Fannie is directing its mortgage servicers to provide borrowers impacted by Chinese drywall up to six months of forbearance on their monthly mortgage payment and to minimize the derogatory credit impact for borrowers who are current on their loans and complying with the terms of the forbearance.”
Housing Wire – “FinCEN Says Foreclosure Scam Reports Rose Dramatically in 2009” (6-18-10)
“The number of suspicious activity reports (SARs) from financial institutions related to foreclosure scams dramatically increased last year, according to a new report from the Financial Crimes Enforcement Network (FinCEN). The report also noted that the type of foreclosure scams also evolved during the reporting period, which covered Jan. 1, 2004, through Dec. 31, 2009. FinCEN said foreclosure rescue scams increased substantially in the last eight months of 2009.”
Orange County Register – “Pimco: No quick recovery for big properties” (6-18-10)
“Distressed properties may be hard to sell, making a quick recovery unlikley. Commercial real estate prices will remain 30% to 40% below 2007 peaks for three to five years and may not return to 2007 peaks until end of the decade.”
Realty Times – “Developing The Skill Of Qualifying Buyers” (6-18-10)
“The longer the time the buyer has been looking, the lower the motivation. We have to wonder why a buyer has not been able to find a home in six months. Are they looking for something that doesn’t exist? Are their expectations too high for the marketplace? Do they just enjoy the process of kicking foundations? When someone said to me that they had been looking for more than 90 days, I wanted to know what they were looking for and the reasons why they hadn’t found it yet.”
Realty Times – “Little Change Seen in Mortgage Rates This Week” (6-18-10)
“Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.75 percent with an average 0.7 point for the week ending June 17, 2010, up from last week when it averaged 4.72 percent. Last year at this time, the 30-year FRM averaged 5.38 percent.”
Realty Times – “How To Make Buyers Want Your Home” (6-18-10)
“Countertops are fixtures in homes. So making sure that you select the best material to endure the daily wear and tear is important. If we’re talking about the kitchen, for instance, there are many options: granite, tile, recycled glass (for a green option), solid steel, composite stone, butcher block, laminate, and even concrete. Yes, that last one sounds surprising but concrete is being used for countertops and laminate isn’t necessarily trying to mimic other materials anymore. Instead, homeowners are embracing laminate’s own unique high-tech look.”
Looking Back:
One year ago, the median price paid for a home in the nine-county Bay Area region rose to $341,500. The Federal Reserve’s total amount of commercial/residential mortgage debt decreased by $33 million from 2008 to 2009. Economists from Chapman University claimed that an economic recovery would begin during the second half of 2009. The average 30-year FRM rate dropped to 5.38 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 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.
California Real Estate Investing News is a post from: The Norris Group