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 … [Read more...]
Loan Modifications Primer for Mortgage Industry
November 12, 2008 By 1 Comment
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 … [Read more...]
The Obama Mortgage Market Edition
November 7, 2008 By Leave a Comment
TARP II-A Better Troubled Asset Relief Program Will Obama focus on building a "better" TARP? One that looks more like the original Paulson plan, zeroing in on setting a price on the seed of the mortgage meltdown--"troubled assets?" Notably a portion of the TARP acronym, but reprioritized immediately out of the gate to a bank recapitalization plan. The argument being presented by some is that we are still facing the same problem Paulson called an emergency meeting of Congressional leader to warn … [Read more...]
Greenspan on Housing Market, US Inflation Jumps, Foreclosures Rapidly Rising Too
August 14, 2008 By Leave a Comment
WSJ: Greenspan Reflects on the Bottom of the Housing Market, Fannie/Freddie Bailout, and Immigration? Former Federal Reserve Chairman, Alan Greenspan tries again to call the bottom of the housing market in an interview timed around the release of the paperback version (equipped with a new chapter defending his record) of his recent book. He give sound rationale and methodology on how to guesstimate the bottom, using housing supply and spread between owing and renting. However, he gets a little … [Read more...]
Banks Stocks, Falling Home Prices, Countrywide Option ARMs, Foreclosures in CA, and Nehemiah Mounts Web Campaign
August 13, 2008 By Leave a Comment
WSJ: Bank Stocks Drop Anew Amid Worry Over Falling Home Prices Bank balance sheets may hold even more unpredictable losses in the REO portfolios as repeat home sales continue to slow and housing prices continue to drop. The true market losses are hard to estimate as there is little relevant historical data around this type of distressed transaction. In addition, many of these transactions are sitting idle with little velocity--adding to the overall risk. The discounting is starting in bank … [Read more...]
