Skip to comments.Jobless Claims, Mortgage Foreclosures and Eminent Domain in California
Posted on 08/08/2013 7:57:54 AM PDT by whitedog57
According to the Department of Labor, in the week ending August 3, the advance figure for seasonally adjusted initial claims was 333,000, an increase of 5,000 from the previous weeks revised figure of 328,000. The 4-week moving average was 335,500, a decrease of 6,250 from the previous weeks revised average of 341,750.
Continuing claims rose above the 3 million mark, printing at 3,018,000. This represents an increase from the previous week of 2,951,000. Yet we seem stuck in a continuing claims slump since April.
Consumer confidence? It rose to -23.5, the highest level since early 2008.
Delinquent mortgages (as a percentage of total loans) fell to 6.96%, the lowest since September 2008.
And foreclosures fell to 3.33% of total loans, the lowest since December 2008.
Prime mortgage foreclosures fell to 2.13% while subprime rose to 11.01%.
The 10 year Treasury rate has remained in a stable zone after zooming upwards after May 1st.
The labor market is SLOOOWWWLLLLY healing (at least for part-time workers), mortgage delinquencies and foreclosures are back to 2008 levels and residential properties in negative equity territory (according to CoreLogic) is at 9.7 million.
Although negative equity is improving (especially in California), Richmond California is considering eminent domain to seize underwater mortgages. Now El Monte is considering the same taking.
PIMCO and BlackRock are seeking a court order to block Richmond from pursuing the taking of mortgages.
The plan advanced last month with Richmond backing offers to buy 624 loans, making it the first city to push the idea so far forward. Those offers would need to be refused before the city could follow through with its mayors vow to invoke its potential powers to force sales of the mostly non-delinquent loans, so that homeowners could get their debt balances cut to less than the current values of their properties.
The program would harm owners of mortgage bonds by paying them too little for loans, as well as damage communities by drying up lending, at least 18 trade groups representing asset managers, bankers, real-estate firms and builders have said in past statements. Costs to investors could exceed $200 million just on loans in Richmond, according to the complaint.
And according to Nick Timiraos of the Wall Street Journal, Freddie Mac is weighing actions to block Richmond from mortgage seizures.
Once again, governments had trouble letting markets heal and feel pressured to interfere, even if it is through forced taking of assets from private entities (this was NOT the intent of eminent domain).
Remember most if not all the mortgages in question are from bank inflated appraisals so they can sell the promissory note to suckers.
The note holders still have a course of action against the banks and brokers.
Sounds like a dandy way to collapse the banking system to me.
(not that they don’t deserve it....not looking forward to eating tree bark though....)
A third of a million people a week lose their jobs for the first time and file a claim... this has been going on for years... and it is good news?????????????????????????????
Too little? What is "too little"? Corporations and pension funds and all of the folks involved in these types of transactions lobby, cajole, threaten government entities whenever it suits them.
Now that the government entities are no longer going along with the program they start to whine and make all sorts of moral and ethical claims about what's right and what's wrong.
Those who live by cronyism can go ahead and screw themselves when their whores no longer want to put out.
Read the headline in the newspaper on the floor by the failure to launch.
MRP out of San Fran is pushing Richmond.
Essentially they will buy the seized loans from Richmond at 80 cents of the FMV of the house.
The will look to turn around and “restructure the loans at a 95% LTV, and reap the profits of 95-80.
Only Fannie and Freddie has said they will not refi the loans. Only FHA has yet to issue a policy statement on this issue.
These borrowers are underwater, but they are current on their payments.
There is no altruism here, just flipping the loans for a quick buck.
To make matters worse, the greedy bastard banksters were able to have this multi-million SSSS judgment sealed. Hundreds of $$$$$ Billions in fraudulent mortgage documents and the paper supporting them are totally manufactured garbage. And hardly anyone knows the truth.
Tell all the shills to go jump in the lake and to take the phony, fraudulent MERS filing system and shove it.
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