Tuesday, July 21, 2009

Bloomberg - "Realtors’ ‘Rosy’ Index Overstates Affordability: Chart of Day" (7-20-09)

"The CHART OF THE DAY shows the National Association of Realtors’ index soaring much higher than the previous record amid lower property prices and mortgage rates. Also shown is what might be a more-accurate reading, according to a July 17 report by Vipul Jain, Max Nissman and Ohmsatya Ravi."

CNN - "The commercial real estate time bomb" (7-20-09)

"The story line reads like a sequel to the residential debacle: Commercial property owners are sitting on loans that need to be refinanced. The Real Estate Roundtable estimates that about $400 billion a year in commercial loans will need to be refinanced over the next decade."

Yahoo - "US financial market bailout tab hits $4.7 trillion" (7-20-09)

"The federal government has devoted $4.7 trillion to help the financial sector through its crisis, a level of assistance equal to about one-third of the overall U.S. economy, a watchdog report said Monday."

Mish's Global Economic Trend Analysis - "TARP Special Investigator Says Bailout Total May Reach $23.7 Trillion" (7-20-09)

"Costs include $2.3 trillion in programs offered by the Federal Deposit Insurance Corp., $7.4 trillion in TARP and other aid from the Treasury and $7.2 trillion in federal money for Fannie Mae, Freddie Mac, credit unions, Veterans Affairs and other federal programs, he said."


Bloomberg - "Wells Fargo May Report Higher Profit on Mortgage Banking Surge" (7-21-09)

"Wells Fargo & Co., this year’s biggest U.S. home lender, may report an increase in second- quarter profit tomorrow, fueled by a surge in mortgage refinancing. Adjusted net income probably rose 3 percent to $1.81 billion, or 36 cents a share, from $1.75 billion, or 53 cents, a year earlier, according to the average estimate of analysts surveyed by Bloomberg. Earnings per share fell after the San Francisco-based company sold stock, boosting shares outstanding"

Mortgage Orb - "First American Division Addresses REO Rental Strategies" (7-20-09)

"National Residential Rental Services expects to accelerate financial institutions’ use of a broad array of rental-based strategies as an extension of loss mitigation and asset disposition practices by providing services that facilitate both the generation of net positive cashflows from the rental income of otherwise nonperforming assets, and the protection of asset values for eventual sale. NRRS also expects that its services will assist financial institutions in complying with recently enacted and prospective anti-displacement legislation such as the Protecting Tenants at Foreclosure Act of 2009."

Orange County Register - "When will these foreclosures hit the market?" (7-21-09)

"The chart clearly shows that investors began buying more properties at auctions in spring 2008 and are buying even more properties now, in the range of 20% to 30%. However, the chart also shows foreclosures peaked in summer 2008 in Orange County, right before California enacted a law requiring lenders and servicers to talk to borrowers at least 30 days before filing a notice of default. Since that law began in September 2008, notices of default, which initiate the foreclosure process, have rebounded back to peak levels in the range of 2,500 per month. But foreclosures remain depressed, though they have increased in recent months"


Orange County Register - "Beach towns suffer deepest O.C. home-price dips" (7-21-09)

"Analysis of MDA DataQuick’s June report shows Orange County’s beach-close communities — the priciest of four geographic slices of the county — suffered the biggest price drops last month."

Orange County Register - "Buyers dominate foreclosure auction" (7-18-09)

"Buyers grabbed more than half the properties offered at a foreclosure auction in Santa Ana on Thursday, amid discounts as large as 70% off debt owed on the houses and condos."

Inman - "Another GMAC brokerage spin-off" (7-21-09)

"San Francisco Bay Area based luxury broker Pacific Union GMAC Real Estate will be sold to a smaller brokerage in the San Francisco Bay Area as part of ongoing efforts by its parent company to convert corporate-owned offices into independent franchisees."

Inman - "Bill would extend higher loan limits" (7-21-09)

"A spending bill approved by the House Appropriations Committee would extend the temporary $729,750 loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration in high-cost housing markets through September 2010."

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