Today’s News Synopsis:
MDA DataQuick reports that 7,828 new and resale houses and condos were sold in the Bay Area during December. According to OCC, seriously delinquent loans of 60 or more days increased to 6.2 percent of the servicing portfolio. Radar Logic’s study of 25 metropolitan markets shows that home sales increased by 46.7%. Freddie Mac’s weekly survey shows that mortgage rates on 30-year U.S. loans fall to 4.99%.
In The News:
DQNews – “Bay Area December home sales strongest in three years” (1-21-10)
“A total of 7,828 new and resale houses and condos were sold in the nine-county region last month. That was up 13.8 percent from 6,878 in November, and up 13.6 percent from 6,889 for December 2008, according to MDA DataQuick of San Diego.”
OCC – “OCC and OTS Mortgage Metrics Report” (1-21-10)
“Overall, mortgage performance continued to decline as a result of continuing adverse economic conditions including rising unemployment and loss in home values. The percentage of current and performing mortgages fell to 87.2 percent of the servicing portfolio. Seriously delinquent mortgages— loans 60 or more days past due and loans to delinquent bankrupt borrowers—rose to 6.2 percent of the servicing portfolio. Foreclosures in process increased to 3.2 percent, while new foreclosure actions remained steady for the third consecutive quarter at 369,209. Of particular note, delinquencies among prime mortgages, the largest category of mortgages, continued to climb. The percentage of prime mortgages that were seriously delinquent in the third quarter was 3.6 percent, up 19.6 percent from the second quarter and more than double the percentage of a year ago.”
Housing Wire – “BarCap Expects ‘Little Bite’ from FHA Underwriting Changes” (1-21-10)
“Recently-announced underwriting changes to the Federal Housing Administration’s (FHA) mortgage insurance program might be ‘all bark, little bite’ according to commentary Thursday by Barclays Capital (BarCap) researchers. The FHA changes include increases in the mortgage insurance premium, increased downpayment for low FICO borrowers, reduced ability to roll closing costs into the loan and increased lender recourse to FHA lenders.”
Housing Wire – “Radar Logic Says Housing Market is Poised for Recovery” (1-21-10)
“Residential real estate showed some signs of life in November, according to Radar Logic’s monthly Residential Property Index (RPX). November home sales volume increased year-over-year in all of the 25 metropolitan markets the RPX report covers. Sales volume increased 46.7% year-over-year and 1.5% month-over-month.”
Housing Wire – “PNC Posts $2.4bn Gain, 61 Permanent HAMP Mods in 2009” (1-21-10)
“The PNC Financial Services Group (PNC: 55.70 -5.26%) reported a Q409 net income of $1.1bn, or $2.17 per diluted common share, an increase from the $559m gain in Q309. The company’s net income for the year reached $2.4bn, or $4.36 per diluted common share, compared to $914m, or $2.44 per share, in 2008.”
Housing Wire – “Investors Ask Fed for $1.4bn of TALF Loans to Buy Legacy CMBS” (1-21-10)
“The Federal Reserve Bank of New York on Wednesday received requests for $1.45bn of government loans to buy securities backed by commercial mortgages.”
Bloomberg – “BlackRock Proposes New Consumer Bankruptcy Option” (1-21-10)
“Consumers need a new type of bankruptcy that would better aid homeowners and be fairer for mortgage-bond investors than the existing U.S. loan-modification program, BlackRock Inc. Vice Chairman Barbara Novick said. BlackRock, the world’s largest asset manager, proposes creating a bankruptcy option under which terms of a consumer’s mortgage can be eased, though only after other debts are eliminated, Novick said in a telephone interview. Judges would need to follow a formulaic approach, she said.”
Bloomberg – “Homebuilders Turn to Private Equity for Financing” (1-21-10)
“More than 40 U.S. homebuilders have teamed up with private equity firms to acquire and complete unfinished subdivisions as banks cut construction lending. The investments will pay off for the builders and their investors if the prices are low enough and the locations are in areas where demand is recovering, said Megan McGrath, a home building industry analyst at Barclays Capital Inc. in New York.”
Bloomberg – “Bank Failures Should Destroy CEOs, Buffett Tells Fox” (1-21-10)
“President Barack Obama’s proposal to regulate banks should include a requirement that chief executive officers and their spouses forfeit their assets when companies fail, billionaire Warren Buffett said on Fox Business Network.”
Bloomberg – “Mortgage Rates on 30-Year U.S. Loans Fall to 4.99%” (1-21-10)
“Mortgage rates in the U.S. dropped for a third week, lowering borrowing costs for consumers and supporting government efforts to boost the housing market. The rate for 30-year fixed U.S. home loans fell to 4.99 percent for the week ended today from 5.06 percent, mortgage finance company Freddie Mac said in a statement today. The average 15-year rate declined to 4.4 percent from 4.45 percent, according to the McLean, Virginia-based company.”
Bloomberg – “U.S. Life Insurers May Face More Real Estate Losses” (1-21-10)
“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., may face $15 billion in additional commercial real estate losses, most of which will be recognized in the next two years, Fitch Ratings said.”
Looking Back:
One year ago, the NAHB reported that builder confidence had decreased to a record low. Dataquick reported that foreclosures represented more than half of all sales. Research from the Construction Industry Research Board showed that Orange County governments issued 3,156 building permits to homebuilders in 2008.
California Real Estate Investing News is a post from: The Norris Group