Keyword: mortgage

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  • Elizabeth Warren tells donors minorities were ‘targeted’ with subprime mortgages

    12/08/2014 2:10:54 PM PST · by SeekAndFind · 79 replies
    Hotair ^ | 12/08/2014 | Noah Rothman
    Progressive icon Sen. Elizabeth Warren (D-MA) recently dropped a bombshell in a private meeting with Boston-area donors, according to a report in Politico. The dispatch focuses primarily on WarrenÂ’s candid criticisms of President Barack Obama and his pick to serve as undersecretary for domestic finance at the Treasury Department, Antonio Weiss. This bit of fractious infighting within the Democratic Party will provide pundits with an opportunity to examine the divisions within the Democratic coalition, but Warren also made a more interesting contention in this meeting that merits further review. According to sources who attended that meeting, Warren heavily criticized...
  • Ben Bernanke can't refinance: Tough lending standards

    10/04/2014 12:08:44 PM PDT · by SeekAndFind · 20 replies
    Money ^ | 10/04/2014 | By Chris Isidore and Katie Lobosco
    <p>You want proof that it's tough to get a mortgage? Ben Bernanke, the nation's top central banker until the start of this year, is having trouble refinancing his home.</p> <p>Bernanke spoke of his problems during an appearance Thursday at a conference in Chicago hosted by the National Investment Center for Senior Housing and Care.</p>
  • Student Loan Bubble Blowback: Morgan Stanley Warns Average Debtor Can't Get A Mortgage

    10/04/2014 10:48:45 AM PDT · by SeekAndFind · 10 replies
    Zero Hedge ^ | 10/03/2014 | TYLER O'NEIL
    Via Morgan Stanley,Amid rising tuition costs, an increasing share of students rely on debt to fund their education. Student loan delinquent balances have been on the rise since the early 2000s and those with student loans are likely to be less credit worthy than those without (Exhibit 50 & Exhibit 51). As a result, consumption for the student debt-laden population may be depressed. To be sure, the share of consumption driven by college age consumers has been in decline since 2003.These challenges are further compounded under the Qualified Mortgage (QM) regulatory regime that became effective in January 2014. The...
  • Ben Bernanke turned down for mortgage refinancing

    10/03/2014 6:23:04 AM PDT · by HereInTheHeartland · 13 replies
    CNBC ^ | CNBC
    Excerpt: "Despite having served as one of the most central figures in the global economy, even Ben Bernanke has difficulty refinancing his mortgage. "
  • dwyane wade chicago can be cold foreclosure imminent!

    08/20/2014 6:12:51 AM PDT · by SoFloFreeper · 31 replies
    tmz.com ^ | 8/19/14
    Dwyane Wade reportedly makes around $30 million a year -- his estimated worth is approximately $100 mil -- which makes it pretty shocking his $1.2 million Chicago pad is in foreclosure. According to legal docs -- obtained by TMZ Sports -- Wade stopped making payments on the $225K mortgage ... the docs don't say how much he's behind.
  • Yes, This Is An Equity Bubble

    07/29/2014 3:09:09 PM PDT · by Lorianne · 6 replies
    Hussman Funds ^ | 28 July 2014 | John P. Hussman, Ph.D.
    A few notes on valuation and investment returns. First, as I’ve noted frequently in recent comments, it’s quite reasonable to argue that lower interest rates can “justify” higher valuations, provided that one also recognizes that those higher valuations will still be associated with commensurately lower future equity returns. At present, we estimate zero or negative nominal total returns for the S&P 500 on horizons of 8 years or less, and about 1.9% annual total returns over the next decade. If these prospects seem “fair” given the level of interest rates, that’s fine – one can then say that low interest...
  • EXPOSED Federal Reserve Doc: Go from paper homeowner instruments to electronic. What fraud?

    07/11/2014 6:49:00 AM PDT · by Opinionatedtoday · 11 replies
    In Legalizing Mortgage Theft? I asked who was behind the push to eliminate paper mortgage instruments and move to an easily manipulated national electronic mortgage registry to the Uniform Law Commission (ULC). ULC is drafting the Home Foreclosure Procedures Act (HFPA). This is important to ask considering that the Mortgage Electronic Registration Systems, Inc. (MERS) has perpetrated widespread fraud against innocent homeowners through their national electronic registry. If you own a home or live somewhere, this affects you. MERS, also known as MERSCORP, has been accused of being ground zero of a Racketeer Influence and Corrupt Organizations Act (RICO) fraud...
  • Brace Yourself for Another Wave of Underwater Borrowers

    06/03/2014 8:32:02 AM PDT · by SeekAndFind · 9 replies
    Townhall ^ | 06/03/2014 | Mike Shedlock
    Black Knight's April Mortgage Monitor shows almost 2 million modifications face interest rate resets, and 40 percent of those resets are underwater. Email News Release "We have seen a continual reduction in the number of underwater borrowers at the national level for some time now, but modified loans show a different picture," said Kostya Gradushy, Black Knight's manager of Loan Data and Customer Analytics. "While the national negative equity rate as of April stands at 9.4 percent of active mortgages, the share of underwater modified loans facing interest rate resets is much higher -- over 40 percent. In addition, another...
  • Think you will own your house someday? Think again. How to check your chain of title + Video Video

    05/17/2014 6:55:58 AM PDT · by Opinionatedtoday · 49 replies
    marinkapeschmann.com ^ | Marinka Peschmann
    Imagine pulling up to your driveway with your kids laughing in the backseat, having come home from a baseball game, to see a foreclosure notice tacked on your front door. Maybe all of your belongings have been tossed out onto the street. You are in shock. It doesn’t make sense. There must be a mistake. Why is the bank taking your house? Your home was your security, your retirement. It was the American dream. You had played by the rules. It’s where your children have been growing up. Now, incredibly, suddenly, without warning, your entire world has been ripped apart,...
  • U.S. Backs Off Tight Mortgage Rules

    05/14/2014 6:02:50 AM PDT · by mac_truck · 42 replies
    WSJOnline ^ | 5/13/2014 | Nick Timiraos and
    WASHINGTON—The Obama administration and federal regulators are reversing course on some of the biggest postcrisis efforts to tighten mortgage-lending standards amid concern they could snuff out the fledgling housing rebound and dent the economic recovery. On Tuesday, Mel Watt, the newly installed overseer of Fannie Mae and Freddie Mac, said the mortgage giants should direct their focus toward making more credit available to homeowners, a U-turn from previous directives to pull back from the mortgage market. In coming weeks, six agencies, including Mr. Watt's, are expected to finalize new rules for mortgages that are packaged into securities by private investors....
  • Lenders' credit score requirements may be stricter than needed

    05/11/2014 9:27:41 AM PDT · by jeannineinsd · 18 replies
    Los Angeles Times ^ | 5/11/2014 | Kenneth R. Harney
    Are lenders' credit score requirements for home buyers this spring too high — out of sync with the actual risks of default presented by today's borrowers? The experts say yes. What experts? The developers of the credit scores used by virtually all mortgage lenders. Executives at both FICO, creator of the dominant credit score used in the mortgage industry, and up-and-coming competitor VantageScore Solutions confirmed that mortgage lenders could reduce today's historically high score requirements without raising their risks of loss. In the process, many prospective buyers who currently can't qualify might get a shot at a loan approval. ....
  • Don’t be fooled into mortgaging your home to buy stocks

    04/01/2014 7:22:09 AM PDT · by SeekAndFind · 9 replies
    Financial Post ^ | 04/01/2014 | Martin Pelletier
    Investors seem to have completely forgotten about the concept of risk thanks to a prolonged period of ultra-low interest and stock markets setting new highs. In particular, such an environment has a tendency to bring out the worst pieces of investment advice, such as taking out a mortgage to buy stocks. One would think warning signs would flash when non-investment professionals such as mortgage brokers offer this type of advice. Therefore, while this may ruffle a few feathers in the industry, let’s tackle this recommendation head-on and hopefully show why it is a terrible strategy. To begin, let’s divide your...
  • Time to scrap the mortgage interest deduction: Simplify the Tax Code and Lower Tax Rates for All

    03/28/2014 7:03:46 AM PDT · by SeekAndFind · 129 replies
    Washington Examiner ^ | 03/27/2014 | Philip Klein
    In the coming weeks, Americans will spend an average of 13 hours and $210 to prepare their federal taxes. Beyond the compliance burden the federal tax code imposes, it also distorts economic activity and discriminates against some taxpayers in favor of others. But one of its most egregiously unfair provisions is also among its most popular - the mortgage interest deduction. In theory, the mortgage interest deduction is supposed to encourage home ownership, a questionable goal for government to begin with. The purpose of taxes is to raise money to finance government services, not to manipulate human behavior or economic...
  • JP Morgan To Lay Off 17,000 Mortgage Bankers In 2013 And 2014, Because The "Housing Recovery"

    02/25/2014 8:53:01 AM PST · by SeekAndFind · 20 replies
    Zero Hedge ^ | 02/25/2014 | Tyler Durden
    The last time JPMorgan had an investor day, Jamie Dimon explained to Mike Mayo why he is richer than him (and pretty much anyone else). This year, Jamie will be more focused on explaining to 8,000 JPM workers why after firing 16,500 people in consumer and mortgage banking, the bank will now let go another 2K and 6K in those same two groups (which will bring total mortgage and consumer banking headcount reductions between 2013 and 2014 to at least 17K and 7.5K, respectively). This may be tricky especially in the context of, you know, the housing and economic...
  • NY Times: The Stimulus worked! (Almost verbatim White House talking points)

    02/23/2014 11:37:10 AM PST · by SeekAndFind · 35 replies
    American Thinker ^ | 02/22/2014 | Rick Moran
    Here's an editorial in the New York Times about the beneficial effects of the $832 billion stimulus bill passed in 2009 that could have been written in the White House: Of all the myths and falsehoods that Republicans have spread about President Obama, the most pernicious and long-lasting is that the $832 billion stimulus package did not work. Since 2009, Republican lawmakers have inextricably linked the words "failed" and "stimulus," and last week, five years after passage of the Recovery Act, they dusted off their old playbook again."The 'stimulus' has turned out to be a classic case of big promises...
  • Cities Mull Using Eminent Domain To Seize Mortgages

    01/08/2014 7:15:01 AM PST · by SeekAndFind · 21 replies
    IBD ^ | 01/08/2014 | By ANDREA RIQUIER
    As a real estate agent in the struggling San Francisco Bay city of Richmond, Zina Hall is well acquainted with all ways of helping troubled homeowners. Hall spent months this autumn working with an elderly widow with a medical condition who was struggling to make payments. Her best option, Hall believed, was a short sale, and they began that laborious process. But after several weeks, the homeowner disappeared, then called Hall to say she wanted to pull out and use a new program by the city. "They have eminent domain and it's going to help me," Hall recalled her saying....
  • Mortgage rise will plunge a million homeowners into 'perilous debt' [UK]

    01/02/2014 2:19:44 PM PST · by Lorianne · 5 replies
    Guardian (UK) ^ | 28 December 2013 | Daniel Boffey
    High prices leave borrowers exposed as it emerges that 13 million people paid for Christmas on credit ___ More than a million homeowners will be at risk of defaulting on their mortgages and losing their properties in the wake of even a small rise in interest rates, a bombshell analysis reveals. Borrowers who have failed to pay down their mortgages when interest rates have been at record low levels now face being overwhelmed by "perilous levels of debt" when the inevitable hike comes. Gillian Guy, chief executive of Citizens Advice, warned of a "financial ticking timebomb": "The rising cost of...
  • The 106.2% Solution? Top 40% Paid 106.2% of Income Taxes While Bottom 40% Paid -9.1%

    12/10/2013 3:58:50 PM PST · by whitedog57 · 11 replies
    Confounded Interest ^ | 12/10/2013 | Anthony B. Sanders
    According to the Congressional Budget Office, the top 40% of Americans paid 106.2% of income taxes. How can the top 40% pay MORE than 100% of income taxes? Simple. The bottom 40% of Americans paid -9.1% of income taxes. And they received an average of $18,950 in government transfers. Of course, we know that real median household income has been falling generally since 2000 and especially since 2007. And house prices have been falling, but house prices have changed course and have been rising since 2012. csrealinc Seriously, how can the US have a dynamic housing market with such a...
  • ANOTHER Housing Crisis? This Time In Rental Markets (Real Problem Is Declining Real Income)

    12/10/2013 11:06:49 AM PST · by whitedog57 · 8 replies
    Confounded Interest ^ | 12/10/2013 | Anthony B. Sanders
    “We are in the midst of the worst rental affordability crisis that this country has known,” said Shaun Donovan, U.S. Secretary of Housing and Urban Development. There are now 43 million renter households, or 35 percent of all U.S. households, the highest rate in more than a decade for all age groups, according to Harvard’s Joint Center for Housing Studies. That’s 4 million more renters today than there were in 2007. For those aged 25 to 54, rental rates are the highest since the center began record keeping in the early 1970s. Wait a minute. The Clinton Administration wanted to...
  • FHA To Drop Loan Limits (Lowering The Brad Pitt Mortgage Limit), Hawaii Still The Highest

    12/08/2013 11:51:10 AM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 12/08/2013 | Anthony B. Sanders
    According to Nick Timiraos at the Wall Street Journal, Housing Agency (FHA) Will Reduce Mortgage-Loan Limits next month. The maximum for single-family homes in certain “high-cost” housing markets including Los Angeles, San Francisco and New York will fall to $625,500, from the current level of $729,750. This is an attempt to bring the FHA back in line with their original mission of supporting first time homebuyers, not the Brad Pitts of the world. Why does the Federal government insure mortgages in expensive cities that are far more costly than middle America? Ask your Congressman. Example. Honolulu leads the nation in...
  • Coastal Fats: Millionaires Defaulting On Mortgages In Record Numbers While Others Struggle

    12/08/2013 7:51:35 AM PST · by whitedog57 · 14 replies
    Confounded Interest ^ | 12/08/2013 | Anthony B. Sanders
    While foreclosure activity as a whole has been declining in the U.S., there are still some unnerving aspects to the housing and mortgage recovery. So, it’s time for “The Good, The Bad and The Ugly.” The good. According to RealtyTac, overall U.S. foreclosure activity is down 23 percent year-to-date through October 2013. The bad. Foreclosure activity on properties in the $5 million-plus value range is up 61 percent from the same time period in 2012. And most of it is concentrated in Florida and Los Angeles. I designate Atlanta as an honorary coastal city since Georgia does have properties on...
  • 203k Nonfarm Payroll Jobs Added (Bartenders Lead Again), Personal Income Declines -0.1%

    12/06/2013 6:41:29 AM PST · by whitedog57 · 7 replies
    Confounded Interest ^ | 12/06/2013 | Anthony B. Sanders
    The November jobs report is out from the Department of Labor and nonfarm payrolls rose more than expected. 203,000 jobs were added versus the expectation of 185,000. However, most jobs added were low paying jobs and holiday season related. The unemployment rate fell to 7.0% while the underemployment rate dropped to 13.2%. Labor force participation rate rose to 63.0% from 62.8%. WHERE were the jobs created? The biggest winners were low paying jobs related to the Holiday season for the most part: Food services and drinking places 17.9 General Merchandise Stores 13.8 Temporary Help Services 16.4 Home Health Care Services...
  • On West Coast, Along With House Prices (Another Affordability Crisis In Housing?)

    12/05/2013 3:26:29 PM PST · by whitedog57 · 7 replies
    Confounded Interest ^ | 12/05/2013 | Anthony B. Sanders
    Trulia released its price and rent monitor today. In November, asking home prices rose 12.1 percent year-over-year (YoY), increasing in 98 of the 100 largest U.S. metro areas. Regaining a bit of steam since the slowdown began in July, asking prices rose 1.0 percent month-over-month (MoM) and 3.0 percent quarter-over-quarter (QoQ). In fact, the quarterly increase is the fastest in five months, though still lower than in the spring. The west coast along with Atlanta and … Detroit(?) are still growing in price at a rapid rate, but that rate is slowing down. askrpicertrulia Rents on the west coast are...
  • Deceleration Nation: The Contrary Recovery, Government Regulation And Housing Finance Reform

    12/02/2013 12:50:43 PM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 12/02/2013 | Anthony B. Sanders
    It appears that the Corker-Warner housing finance bill is still leading in the reform derby, despite its obvious problems and omissions (like protecting the property rights of current investors). Anyone remember the beating General Motors bond investors took in the government bailout of GM? Corker-Warner does little to fix any housing market problems that exist. And that is because housing legislation can’t cure what ails the economy: decreasing labor force participation and real median household income. Here is a chart of three economic indicators with clear downward momentum: civilian labor force participation (blue), the US homeownership rate (red) and real...
  • Countryfried: Bank of America to pay Freddie Mac $404 million in mortgage settlement

    12/02/2013 8:08:29 AM PST · by whitedog57 · 13 replies
    Confounded Interest ^ | 12/02/2013 | Anthony B. Sanders
    Bank of America has agreed to pay Freddie Mac $404 million in a mortgage settlement over 716,000 loans, many purchased from Countrywide. This is one of many lawsuits by the Federal government over Countrywide and related mortgages. One wonders when the litigation will end. Here is the thing. These suits are largely about representations and warranties between the loan seller and the loan purchaser concerning underwriting standards. The reps and warranties provide relief to the loan purchaser if the underwriting of the loans by the loan seller proves to be misleading or false. But there is another issue called causality....
  • House Prices, Home Ownership And Real Income - Why Housing Is Still Weak And Investor Dependent

    12/01/2013 10:57:26 AM PST · by whitedog57 · 11 replies
    Confounded Interest ^ | 12/01/2013 | Anthony B. Sanders
    There is a lot of talk about a new housing bubble. If you look at a chart of house prices, you can see why. cs2009 This is a faster acceleration rate in house prices than during the much-discussed housing bubble of the last decade. csindices112613 Can it continue to accelerate? There are a couple of factors that say no. First, real median household income has been falling since 2000 and particularly since 2009. It is difficult to maintain price growth under these conditions once investors pull out. csrealinc Second, home ownership rates continue to fall …. along with real median...
  • Gov't World: Less Choice, Higher Prices (Healthcare, Mortgage Markets And Corker-Warner)

    12/01/2013 8:47:43 AM PST · by whitedog57 · 6 replies
    Confounded Interest ^ | 12/01/2013 | Anthony B. Sanders
    I fondly remember the days of Milton Friedman with his book and PBS series “Free to Choose.” That was in 1980 at the end of Carter-era and the beginning of the Reagan Revolution. Fast forward to 2013. We now have less freedom of choice, thanks to Congress and the Administration. Take for example healthcare insurance. Now, everyone must have healthcare insurance, even if you don’t want it. I went to healthcare.gov and saw that my choices were slim and my insurance premium rose to $1,366 per month. And no subsidy. Plus, I get to pay for sex change operations, Sandra...
  • Two Excellent Reasons To Keep DeMarco As FHFA Director, NOT Mel Watt

    11/30/2013 10:37:39 AM PST · by whitedog57 · 4 replies
    Confounded Interest ^ | 11/30/2013 | Anthony B. Sanders
    The Senate will likely take up the confirmation of Mel Watt (D-NC) as Director of the Fannie Mae and Freddie Mac regulator, the Federal Housing Finance Agency (FHFA). Now that Harry Reid (D-NV) triggered the nuclear option allowing Democrats to use simple majority voting on most appointments, it is likely that Watt, who has no regulatory experience, will be confirmed as FHFA Director. What has Ed DeMarco accomplished as a regulator? Many things including, • Significant progress has been made on the development and initial testing of the Common Securitization Platform (CSP); however challenges, including necessary changes to Fannie Mae’s...
  • Hawaiian Eye: 2014 Fannie, Freddie Conforming Loan Limits Highest In Hawaii (Mostly Blue States)

    11/27/2013 3:47:35 AM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 11/27/2013 | Anthony B. Sanders
    FHFA has released the Fannie Mae and Freddie Mac conforming loan limits for 2014. The big winners? Hawaii! fanniefreddicll Second is Alaska (AK). Fortunately, there aren’t enough people in the Aleutians to cause taxpayers serious problems if the unemployment spikes and/or housing prices collapse. Third on the list are Guam, the Virgin Islands and … West Virginia. West Virginia?? California, Washington DC (Maryland, Virginia), Wall Street (New York, New Jersey), Carolina Coast vacation hub (Kitty Hawk) and Idaho. Somehow, I don’t think it is Napoleon Dynamite’s hometown that is among the costliest housing in the USA. Napoleon-Dynamite-napoleon-dynamite-117744_720_540 Once again, I...
  • Vacation Home Comeback! House Price Index Increased 0.2% In September, +9.0% YoY (SC, NV, FL)

    11/25/2013 11:23:19 AM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 11/25/2013 | Anthony B. Sanders
    Lender Processing Services (LPS) released its latest LPS Home Price Index (HPI) report, based on September 2013 residential real estate transactions.According to the report, U.S. Home Prices rose 0.2% in September, up 9.0% Year-Over-Year (YoY). LPS HPI – September 2013 The big winners? Nevada, Georgia and South Carolina. The big losers? NE “blue states”: Connecticut, New Hampshire and Massachusetts. lpshpisept13 On a metro level, Myrtle Beach SC, Charleston SC, Atlanta GA, Miami and Naples FL were the big winners. The big losers? Most of Connecticut and Springfield MA. bigmetro Hey, at least bankrupt Modesto CA is making a comeback! So...
  • Economic Recovery? Pending Home Sales Fall To May 2011 Levels (Falling Real Income)

    11/25/2013 8:15:58 AM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 11/25/2013 | Anthony B. Sanders
    According to the National Association of Realtors, pending home sales dropped 0.6% in October. The West led the decline with -4.1%. Year-over-year (YoY), pending home sales fell -2.2%, the lowest print since May 2011. Was it interest rate increases? Partly, at least in May and June. But since a recent high on August 22nd, the Freddie Mac 30 year mortgage commitment rate has been falling along with pending home sales. Rising house prices combined with declining real median household income isn’t helping home sales. And, of course, falling labor force participation isn’t helping, although house prices continue to rise in...
  • Janet Yellen And The Fed Caught In a Bear (Liquidity) Trap And Why Interest Rates Will Remain Low

    11/24/2013 10:04:06 AM PST · by whitedog57 · 30 replies
    Confounded Interest ^ | 11/24/2013 | Anthony B. Sanders
    The recent confusion from The Fed over the future of quantitative easing (or money printing) can be addressed with a few charts. Here is a chart of real GDP growth PER CAPITA since 1960. Real, of course, indicates that it is Gross Domestic Product adjusted for inflation. Note that Q1 1984 was the peak of real GDP growth … and it has been a steady decline since then. realgdppercap I added the S&P 500 index to the real GDP per capita chart and you can see that the S&P 500 index spikes when real GDP growth is higher than average...
  • Fallout From Senate's Nuclear Option: Mel Watt Likely To Be Confirmed As FHFA Director

    11/23/2013 3:28:32 AM PST · by whitedog57 · 7 replies
    Confounded Interest ^ | 11/23/2013 | Anthony B. Sanders
    There is already fallout from Harry Reid (D-NV) and The Democrats use of the “nuclear option” to change confirmation hearings to a simple majority vote. Of course, this means that the Democrats can force horrible choices on America without the possibility of a filibuster. While most people have focused on the judicial appointments, one person in the housing finance arena stands to benefits: Mel Watt (D-NC). Watt would be a disastrous choice as Federal Housing Finance Agency (FHFA) Director. He has NO regulatory experience, did not know what Tier 1 capital was (the lack of which sank Fannie Mae and...
  • Why HARP Is Almost Dead: U.S. Negative Equity Rate Falls at Fastest Pace Ever

    11/22/2013 4:30:40 AM PST · by whitedog57 · 11 replies
    Confounded Interest ^ | 11/22/2013 | Anthony B. Sanders
    According to Zillow, the U.S. negative equity rate fell at the fastest pace ever in Q3 2013. That is good news … if you own a mortgage or a home. But not great news if you are one of America’s growing renters. Leading the recovery, due to house price recovery, is California. And second is Nebraska? In general, the West which was so hammered by the housing bubble burst is recovering nicely. zillownegeqmap11222013 Here is a map of counties regarding negative equity. Red is “bad”, blue is “good”. You can see that the West and select counties around the nation...
  • Housing Finance Reform: Lessons From The Obamacare Debacle (Government Takeover Of Insurance)

    11/20/2013 8:17:09 AM PST · by whitedog57
    Anthony B. Sanders ^ | 11/20/2013 | Anthony B. Sanders
    As Congress mulls over the “reform” of Fannie Mae, Freddie Mac and even the Federal Housing Administration (FHA), it is important to remember that these entities are INSURANCE COMPANIES that compete directly with private mortgage insurers like MGIC. So when we consider housing finance “reform,” consider the debacle from the recent “reform” of insurance: The Affordable Care Act. Please visit the Affordable Care Act (aka, Obamacare) at this site and try to enroll. Another similarity between housing finance reform and healthcare reform is that they are both focused on “affordable” delivery on housing finance and healthcare. The Corker-Warner Senate legislation...
  • Eminent Domain, NY Attorney General Schneiderman And Cas Sunstein (All You Need Is Luck!)

    11/19/2013 10:11:14 AM PST · by whitedog57 · 1 replies
    confoundedinterest.wordpress.com ^ | 11/19/2013 | Anthony B. Sanders
    Eminent domain to seize underwater mortgages is rearing its ugly head in New York. However, New York Attorney General Eric Schneiderman actually showed common sense by pointing out the dangers: “I am, just as a lawyer, uncomfortable with expansive use of eminent domain. I think [it] should be a vehicle of necessity, and it’s controversial whenever you use it… You have to be careful about balancing all the interests.” Well said, Mr. Schneiderman. emdomnj Eminent domain to seize underwater mortgages is a clear attack on mortgage investors, as I have discussed previously. But it seems to be gaining momentum, despite...
  • Eminent Domain For Negative Equity Borrowers: ACLU Versus PIMCO And FHFA (Hockett To 'Em, Baby!)

    11/16/2013 11:15:16 AM PST · by whitedog57 · 4 replies
    Confounded Interest ^ | 11/16/2013 | Anthony B. Sanders
    The eminent domain steamroller is gaining momentum. Irvington NJ now joins Richmond CA in the effort to seize the mortgages of underwater borrowers and reduce their debt. Other cities are moving forward (or backward) in the eminent domain derby. Newark NY, Pomona and Oakland CA are moving forward. Other cities are considering studies to seize mortgages such are two in Pennsylvania and a cities in Minnesota, according to Robert Hockett, a Cornell University law professor and one of the architects of the strategy. He should be nicknamed “Hockett to ‘em”. robert_hockett-inside-small Who is the “‘em” that Hockett want to sock...
  • Housing Finance Reform, Corker-Warner and the Bermuda Triangle

    11/15/2013 1:26:44 PM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 11/15/2013 | Anthony B. Sanders
    I attended an excellent panel discussion at the Heritage Foundation in Washington D.C. today on GSE (housing) reform. The speakers were Mark Calabria (Cato), Alex Pollock (AEI), Arnold Kling (former Freddie Mac employee) and Josh Rosner (Graham-Fisher). All speakers agreed that the government guarantee should be eliminated on residential mortgages. Essentially, the US over invests in housing to the detriment of other aspects of the economy. Sure, we got a bubble in house prices and homeownership, but we also neglected building factories and the rest of the economy (choosing instead to import goods from abroad). Here is the result of...
  • Good News! Mortgage Credit Expands In Q3 While Serious Delinquencies Fall (Student Loans Rise)

    11/14/2013 11:34:22 AM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 11/14/2013 | Anthony B. Sanders
    According to the Federal Reserve of New York’s Quarterly Report on Household Debt and Credit, mortgages, the largest component of household debt, increased by 0.7 percent in the third quarter of 2013. Mortgage balances shown on consumer credit reports stand at $7.90 trillion, up by $56 billion from the level in the second quarter. Balances on home equity lines of credit (HELOC) dropped by $5 billion (0.9 percent) and now stand at $535 billion. Household non-housing debt balances increased by 2.7 percent, with gains of $31 billion in auto loan balances, $33 billion in student loan balances and $4 billion...
  • CBO Report Implies That 30 year Fixed Mortgage To Rise To 6% By 2016, 6.9% By 2018

    11/11/2013 8:16:42 AM PST · by whitedog57 · 19 replies
    Confounded Interest ^ | 11/11/2013 | Anthony B. Sanders
    Recently, FF Wiley and Ginger Snap at Cynicomics posted an interesting article entitled “M.C. Escher and the Impossibility of the Establishment Economic View.“ In their article, they discuss the latest budget forecast from the Congressional Budget Office (CBO). They point out that the CBO is abnormally bullish on near-term growth, based on its long-standing assumption that the gap between actual and potential output will swiftly close. But the longer-term growth forecast is … bearish. 44521-LTBOSupplementalData2013 escherchart1_thumb1 (1) The CBO also forecasts the REAL 10 year Treasury rate (nominal less inflation). escherchart21 According to the CBO, the real 10 year rate...
  • Mortgage Applications Rise 6.4% (Mostly Refinancing Apps) - ADP Jobs Disappoint

    10/30/2013 6:54:23 AM PDT · by whitedog57
    Confounded Interest ^ | 10/30/2013 | Anthony B. Sanders
    According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 25, 2013, mortgage applications increased 6.4 percent from one week earlier. mbaindices103013 The seasonally adjusted Purchase Index increased 2 percent from one week earlier. But the MBA’s 30 year effective mortgage rate has been falling since September 6th, so there is definitely a slowdown in mortgage purchase applications. mbap1030a The slowdown in purchase applications can be seen after the spike in 2010. mbapurch103013 The average loan size for a purchase mortgage for adjustable-rate mortgages (ARMs) is over twice the size of fixed-rate...
  • U.K. Mortgage Approvals Rise to Highest Level in 5 1/2 Years (US Remains In Doldrums)

    10/29/2013 8:09:07 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 10/29/2013 | Anthony B. Sanders
    The UK is an interesting counterpoint to the US housing and mortgage finance system. Oct. 29 (Bloomberg) — U.K. mortgage approvals rose to the highest in 5 1/2 years in September, adding to signs of a strengthening property market. Lenders granted 66,735 mortgages, the most since February 2008, compared with a revised 63,396 the previous month, the Bank of England said in a report in London today. Gross mortgage lending was 15.6 billion pounds ($25 billion), the highest since October 2008. The September mortgage approvals figure exceeded economists forecasts. They predicted an increase to 66,000, based on the median of...
  • Fed Policy: The Good, The Bad And The Ugly (Declining Real Household Income, Mortgage Volume)

    10/26/2013 7:31:18 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | Anthony B. Sanders
    The next Federal Reserve Open Market Committee meeting in on October 30th, a preview of Halloween. Despite the lack of evidence of positive growth in the economy, The Fed will likely keep on printing. Two of The Fed’s tools in its arsenal are the Fed Funds rate and longer-term asset purchases (aka, quantitative easing). So, what is the record on the employment front with regard to Fed policies? Let’s take a look. Here is a chart of the unemployment rate (white line) compared to the Fed Funds Target rate (gold) and The Fed’s Balance Sheet (longer-term asset purchases). u3fedpol2 So...
  • 50% Of Foreclosured Homes Occupied, Free-rent To Defaulters

    10/24/2013 10:04:44 AM PDT · by whitedog57 · 7 replies
    Confounded Interest ^ | 10/24/2013 | Anthony B. Sanders
    According to data released Tuesday by the Census Bureau, 49.2 percent of Americans received benefits from one or more government programs in the fourth quarter of 2011. govtbene And, of course, When Obamacare is fully implemented on Jan. 1, 2014, Americans earning up to 400 percent of the poverty level will qualify for a federal subsidy to buy health insurance. Speaking of more and more people of the government dole, RealtyTrac estimates that 47% of the nation’s foreclosed homes are currently occupied. The percentage actually tops 60% in some hot housing markets, like Miami and Los Angeles. Those still living...
  • Mortgage Purchase Applications Rise 0.73%, But Remain In a "Grim Fandango"

    10/23/2013 8:20:32 AM PDT · by whitedog57 · 8 replies
    Confounded Interest ^ | 10/23/2013 | Anthony B. Sanders
    In an abbreviated week (Columbus Day), mortgage applications -0.57% for the week ending October 18, 2013. mbaindice102313 Mortgage purchase applications rose slightly at +0.73%. However, it is slightly disappointing given recent declines in the 30 mortgage rate (in this case, the MBA 30 year effective rate). mbapurch102313 And the long-term trend remains in mortgage lenders’ Grim Fandango. That is, zone of stalled mortgage purchase applications. mbaplt102313 Concerning mortgage refinancing applications, they are increased largely due to the recent decline in mortgage rates. But it is hardly a “refi wave.” More like a ripple in a pond. mbarefi102313 And the Federal...
  • Lenders' Dilemma: Invest in Tech or Exit Mortgage Business (Throw In Lawsuits Too!)

    10/22/2013 8:25:54 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/22/2013 | Anthony B. Sanders
    Kate Berry has a nice article entitled “Lenders’ Dilemma: Invest in Tech or Exit Mortgage Business.“ The cost to originate a home loan is skyrocketing as lenders try to comply with stricter rules to catch problem loans, and some community banks and independent mortgage lenders are now facing a stark choice: invest in technology that would help automate the loan process or exit mortgage lending entirely. Origination costs are expected to rise 11% this year from a year ago, to nearly $5,900 per loan, as lenders scramble to meet tough new requirements from the Consumer Financial Protection Bureau, the Federal...
  • Spain's Housing Market Continues To Melt Down, US House Prices Begin To Cool

    10/18/2013 11:10:00 AM PDT · by whitedog57 · 6 replies
    Confounded Interest ^ | 10/18/2013 | Anthony B. Sanders
    Poor Spain. The economic news continues to be woeful, even though Spain’s Prime Minister Mariano Rajoy thinks the worst is over. But Spain’s housing and mortgage markets continue to melt down Spain currently has a record high default rate on loans of 12.2%. spainloandelinq101813 And Spain’s number of newly mortgaged properties keep declining. spainmorg8 If we overlay Spain’s continually declining house prices, we get an interesting picture … of continued decline in Spain. spainhpdelinqloans Here is a chart for the US housing and mortgage market. The US also has declining residential mortgages outstanding, but at least has turned the corner...
  • No Country For Mortgage Lenders: JPMC And SunTrust Staggering Mortgage Settlements

    10/11/2013 8:05:09 AM PDT · by whitedog57 · 9 replies
    Confounded Interest ^ | 10/11/2013 | Anthony B. Sanders
    The climate for mortgage lenders is definitely taking a downward turn. Wells Fargo has released their Q313 Quarterly Supplement which revealed a shrinking mortgage pipeline. WFC Originations_0 (1) Of course, this is not surprising given a rise in mortgage rates starting May 1st (Q2) and declining real household income. rhoinmbrate But the humming dragon lingering in the background is the cost of litigation for originating and servicing mortgage loans. According to JPMorganChase’ Q3 earnings report, they paid a staggering $9.15 billion in pretax legal expenses. JPM Q3 1 addbacks_0 And then there is SunTrust which has been ordered to pay...
  • Entitlement Nation: Even Housing Is Now An Entitlement (Corker-Warner NOT Reform)

    10/09/2013 8:23:36 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/09/2013 | Anthony B. Sanders
    As former Reagan adviser David Stockman said about Obamacare, “It is a massive entitlement to end all entitlements.” But housing is an entitlement as well. Last week, no less than 63 members of the House and 13 Senators wrote to Financial Housing Finance Administration chief Ed Demarco demanding that he not lower the maximum loan limit for mortgages guaranteed by Fannie Mae and Freddie Mac. In earlier correspondence to DeMarco, first reported by National Mortgage News, National Association of Realtors (NAR) President Gary Thomas questioned the legality of FHFA reducing the loan limits at this time. “Our nation’s housing market...
  • Vanity - Houston area housing info needed

    10/08/2013 3:15:33 PM PDT · by RightField · 22 replies
    I am seeking information from Houston Freepers about real estate there. My daughter moved to Houston 2 years ago from San Diego when her company asked her to temporarily run their Houston office. She now has the opportunity to make the move permanent, and she wants to stay in Texas. Mr. RightField and I are here in Houston for the month of October (visiting in our motorhome). While we are here, we're hoping that local Freepers might point us to a good realtor and a mortgage broker. This will be her first home purchase, and she is looking in the...