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Loan Modifications Getting Mixed Re-default Results

December 12, 2008 By Bill Rice 2 Comments
Sheila Bair FDIC

John Dugan, Comptroller of the Currency has people thinking about the potential risks of mortgage loan modifications. Releasing data earlier this week, Dugan revealed that over 50 percent of loan workouts re-default within the first six months. Meanwhile, FDIC Chairman Sheila Bair says, "not so fast, check your data." Bair points to how loan are modified as the key determinate of success. For example, lowering rates drops that re-default rate to 23 percent according to Credit Suisse survey. A recent … [Read more...]

Filed Under: FDIC, Foreclosure, Loan Modification, Politics, Treasury Tagged With: FDIC, loan modification, occ, ocwen

Foreclosures Drop, False Promise

December 11, 2008 By Bill Rice Leave a Comment

Foreclosure Rates Down RealtyTrac reports a strong 7 percent drop in November foreclosure rates, but pause the rejoicing. There are lots of foreclosure abatement programs at work here. And there is emerging bad news on the loan modification front, OCC reports greater than a 50 percent redefault rate with six months. Delinquencies on loans not yet in the foreclosure process jumped to nearly seven percent in the third quarter, a record high, according to the Mortgage Bankers Association, Saccacio said. "And … [Read more...]

Filed Under: Foreclosure, Loan Modification Tagged With: foreclosure, foreclosure prevention, loan modification

Loan Modifications Primer for Mortgage Industry

November 12, 2008 By Bill Rice 1 Comment
foreclosure sign

If you don't know loan modifications you are going to have a hard time surviving this mortgage business cycle. Despite all of the appealing government assistance and FHA mortgage refinance programs, banks and now the government is settling into massive programs to streamline loan modifications for troubled homeowners. Here is a quick primer on loan modifications to get you up to speed and help you spot opportunities for your mortgage business: FHFA endorsed Fannie Mae and Freddie Mac Loan Modification … [Read more...]

Filed Under: Economy, FDIC, Foreclosure, Loan Modification, Treasury Tagged With: bank of america, bofa, citigroup, fhfa, foreclosure, james lockhart, jp morgan chase, loan modification, neel kashkari

Small Bank Bailouts, The Great Recession, JP Morgan Loan Modifications, Global ZIRP, PMI Losses, GM No Bailout Merger

November 3, 2008 By Bill Rice Leave a Comment
small bank

Small Bank Bailouts Financial market calamity was narrowly averted today as Farmers National Bank of Emlenton is expected to get a much needed capital injection from the US government. William Marsh, CEO led with this, "they were giving out free stuff"-type quote in the WSJ: "It seemed like the consensus in the industry was...go out and get this," said William Marsh, president and chief executive of Farmers National Bank of Emlenton, in Emlenton, Pa. Mr. Marsh said his bank is healthy and viable … [Read more...]

Filed Under: Economy, FDIC, Federal Reserve, Foreclosure, Housing Prices, Mortgage Rates, PMI, Politics, Treasury, US Banks Tagged With: bailout, gm, jp morgan, Loan Modification, PMI, recession, small banks, zirp

Mortgage Rates, Misery Index, Foreclosures, Case Shiller, OPEC, Credit Default Swaps

October 29, 2008 By Bill Rice Leave a Comment
misery-index_thumb

Mortgage Rates Rise as US Market Soars We get a big, even historic, upward bounce in the US stock market. Meanwhile mortgage rates are taking a negative bounce. The interesting part is that one of the stated US government bailout objectives was to preserve or even increase mortgage affordability. However, these same interventions into markets are causing precisely the opposite (possibly short-term) effect: With so much government debt guarantees in the bond market yield spreads between mortgage bonds … [Read more...]

Filed Under: Commercial Paper, Economy, Federal Reserve, Foreclosure, Housing Prices, Mortgage Rates Tagged With: case shiller, credit default swaps, Foreclosure, Housing Prices, misery index, Mortgage Rates, opec