Today’s News Synopsis:
MDA DataQuick reports 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. Schwarzenegger signed a bill allowing taxpayers to be exempt from paying for forgiven mortgage debt. In 2008 and 2009, the income needed to buy a median-priced home decreased in 93 percent of U.S. markets. According to IAS, national house prices fell 0.6% in February.
In The News:
DQNews – “More Incremental Gains for Southland Real Estate Market” (4-13-10)
“A total of 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 33.3 percent from 15,359 in February, and up 5.0 percent from 19,506 in March 2009, according to MDA DataQuick of San Diego.”
Sacramento Bee – “California won’t tax forgiven home debt” (4-13-10)
“Gov. Arnold Schwarzenegger signed legislation Monday to spare thousands of Californians big tax bills on mortgage debt forgiven in 2009. The bill, signed days before Thursday’s tax filing deadline, will eliminate state taxes on forgiven mortgage debt from 2009 through the end of 2012. The U.S. government has already done the same.”
Los Angeles Times – “Washington Mutual created ‘mortgage time bomb,’ Senate panel says” (4-13-10)
“Before Washington Mutual collapsed in the largest bank failure in U.S. history, its executives knowingly created a ‘mortgage time bomb’ by making subprime loans they knew were likely to go bad and then packaging them into risky securities, a congressional investigation has found. In some cases, the bank took loans in which it had discovered fraudulent activity — such as misstated income by borrowers — and rolled them into mortgage securities sold to investors without disclosing the fraud, according to the report released Monday by the Senate’s Permanent Subcommittee on Investigations.”
Inman – “The workers homeownership left behind” (4-13-10)
“Between 2008 and 2009, the income needed to purchase a median-priced home fell in 93 percent of the markets studied, while the income needed fell a median of 9.1 percent, the study said.”
Housing Wire – “Top Four Banks Ready to Write-Down Second Liens” (4-13-10)
“In a hearing today before the House Financial Services Committee, representatives from Bank of America (BAC: 18.67 +0.05%), Citi (C: 4.62 -0.43%), JP Morgan Chase (JPM: 45.87 -0.59%) and Wells Fargo (WFC: 32.15 -0.83%) report that they do not feel efforts to satisfy second lien obligations represent a conflict of interest between the desires of investors and the needs of distressed borrowers. As a result, they are willing to write-down second liens if first lien lenders are doing the same. All four lenders are participants in the Second Lien Modification Program, known as 2MP, which is struggling to gain traction.”
Housing Wire – “Seven Months of House Price Declines Keep IAS Index Near 2004 Levels” (4-13-10)
“National house prices fell 0.6% in February, the seventh consecutive month of decline, keeping prices ‘only fractionally higher’ than levels seen in 2004, according to collateral valuation firm Integrated Asset Services (IAS). Although February’s decline is smaller than recent months — like 0.7% in December — the IAS house price index is now down 25% from its peak in July 2007.”
Housing Wire – “New Inspection Report Helps REO Holders Market Homes to FHA Borrowers” (4-13-10)
“Altisource Portfolio Solutions (ASPS: 25.61 -0.70%), a real estate portfolio services provider, introduced a new inspection report with increased data and repair information on subject properties. According to the company, while a traditional property inspection report outlines the general condition of a property, the new report includes information on the existence and condition of appliances, carpets or other flooring, and whether electrical systems are functioning.”
Bloomberg – “Mortgage-Bond Yields That Guide Loan Rates Fall to 3-Week Low” (4-13-10)
“Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds fell about 0.01 percentage point to 4.44 percent as of 3:02 p.m. in New York, according to data compiled by Bloomberg. That’s down from an eight-month high of 4.67 percent on April 5.”
Looking Back:
One year ago, distressed properties represented 25 percent of U.S. home sales. Jeff Greene confessed to his 2006 investment estimation that money could be quickly made by buying credit default swaps on mortgage backed securities. Experts warned that FHA loans would be the next biggest risk in the U.S. housing market.
California Real Estate Investing News is a post from: The Norris Group