Today’s News Synopsis:
The Federal Reserve made $46.1 billion last year. The MBA predicts that mortgage originations will decline by 39 percent in 2010. According to Integrated Asset Services, national home prices fell by 0.3 percent in November of 2009. FHA reports that foreclosure starts on mortgages from Fannie Mae and Freddie Mac decreased by 15 percent from the second quarter to the third quarter of 2009.
In The News:
Los Angeles Times – “Fed’s reaction to crisis helps deliver record $46.1-billion profit” (1-12-10)
“The Federal Reserve today announced it made a record $46.1-billion profit last year, countering concerns that the central bank has put too much taxpayer money at risk in attempts to stabilize the financial industry.”
Housing Wire – “MBA Expects Mortgage Originations to Fall 40% in 2010” (1-12-10)
“The mortgage finance industry will likely see a continued slow-down in 2010 as unemployment remains high and home sales slide, the Mortgage Bankers Association (MBA) said Tuesday at a media briefing over the state of the real estate industry. The MBA projected total mortgage origination on residential one- to four-family properties is likely to plummet to $1.28trn in all of 2010, from $2.11trn in all of 2009. The projection marks a 39% decline in total mortgage origination in 2010.”
Housing Wire – “MetLife to Provide Reverse Mortgage Program for ABA Banks” (1-12-10)
“The American Bankers Association (ABA) partnered with MetLife Home Loans to provide member banks a reverse mortgage program. Banks provide reverse mortgages to let homeowners convert their home into cash and can allow older borrowers to supplement social security, meet medical expenses and make home improvements.”
Housing Wire – “Tax Refund Gives KB Homes $100m Q4 Profit” (1-12-10)
“A tax return from profits earned during the housing bubble put KB Home (KBH: 15.72 -4.03%) in positive net profit territory in its fiscal year Q409 that ended Nov. 30. Excluding a $191.7m tax refund, KB Home would have lost $91m in the quarter, but instead posted a $100.7m, or $1.31 per share, net profit. With or without the tax refund, the quarter’s results are better than the $307.3m loss in Q408.”
Housing Wire – “IAS Price Index Dips on Declines in Northeast, Midwest” (1-12-10)
“The Integrated Asset Services (IAS) index of national house shows prices fell 0.3% in November, the collateral valuation and management services firm said. That’s better than the 0.5% decline in prices the index experienced in October and the 0.6% decrease in September.”
Housing Wire – “Sellers Cut Listing Prices on 21% of Homes: Trulia” (1-12-10)
“As of Jan. 1, 2010, sellers cut listing prices on 21% of homes currently on the US market, according to the real estate site, Trulia.com.”
Bloomberg – “U.S. Subpoenas 15 FHA Lenders With High Mortgage Defaults” (1-12-10)
“The U.S. Housing and Urban Development Department said it subpoenaed 15 mortgage companies today to seek out possible fraud in an effort to stem losses on loans insured by the Federal Housing Administration. HUD officials, who oversee the FHA mortgage insurance program, said they haven’t haven’t found any evidence of wrongdoing at the lenders, and were singling out those with the highest default rates.”
Bloomberg – “Life Insurers to Sidestep CMBS Losses, Barclays Says” (1-12-10)
“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., will sidestep losses on investments tied to commercial mortgages, said Eric Berg, an analyst with Barclays Plc. ”
Bloomberg – “PMI Drops After Goldman Sachs Sell Recommendation” (1-12-10)
“PMI Group Inc., the third-largest U.S. mortgage insurer, fell the most in five months after a Goldman Sachs Group Inc. analyst said he expects more losses as foreclosures increase.”
Inman – “More loans going bad, but more get help” (1-12-10)
“More homeowners fell behind on their payments during the third quarter of 2009, but fewer were funneled into the foreclosure process as loan servicers engaged in more loan workouts, modifications and short sales, according to a new report. Foreclosure starts on loans guaranteed by Fannie Mae and Freddie Mac fell 15 percent from the second quarter to the third quarter, the Federal Housing Finance Agency said in its quarterly Foreclosure Prevention and Refinance Report.”
Orange County Register – “Housing market warming up in south coast?” (1-12-10)
“In a typically slow quarter for real estate, all three south coast cities saw their expected market time speed up a bit, according to a biweekly report by Steven Thomas of Altera Real Estate. Two weeks ago, it would have taken an expected 6.86 months to sell all of Dana Point’s active home stock, which has sped up slightly to an expected 5.16 months.”
Looking Back:
One year ago, some economists estimated that the Modesto, Stockton, Bakersfield, Riverside and Sacramento housing markets would take the longest to recover. President Bush requested the remaining $350 billion of the financial rescue, and handed his economic authority to Barack Obama. Distressed home sales in Orange County decreased by 7.2 percent.
California Real Estate Investing News is a post from: The Norris Group