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Keyword: mortgage

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  • 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 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 ^ | 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...
  • Mortgage Purchase Applications Decline 6% As ADP Employment Shows Slowing Trend (Obamacare At Work)

    10/02/2013 7:52:01 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 10/02/2013 | Anthony B. Sanders
    spoke at the American Action Forum / Progressive Policy Institute conference “From Recovery to Reform: Building a Sustainable Housing Finance System.” It was a great line-up including Stan Humphries from Zillow, Mark Zandi from Moody’s Analytics, Jim Millsteen, Mark Calabria from Cato and former Minnesota governor Tim Pawlenty. I did mention that any housing reform should consider the continuing decline in labor force participation and declining real median household income, signals that renting may be the preferred option for many and perhaps we should focus on multifamily markets rather than just single-family detached housing finance. lfpmedrealinc An example of my...
  • UK Versus US Housing Markets: Advantage UK

    09/30/2013 7:08:59 AM PDT · by whitedog57 · 12 replies
    Confounded Interest ^ | 09/30/2013 | Anthony B. Sanders
    The UK is seeing rising mortgage approvals and house prices. The US has flat mortgage purchase applications and slowing house price growth. Difference? UK has a noticeably larger labor force participation rate. U.K. mortgage approvals rose to the highest in more than five years in August as the government prepares to accelerate a home-buying program that’s been criticized for potentially over-stimulating the market. Lenders granted 62,226 mortgages, the most since February 2008, compared with a revised 60,914 the previous month, the Bank of England said in a monthly report in London today. Economists forecast that approvals would gain to 61,500...
  • FHA's Galante Says $1.7 Billion Treasury Draw Doesn't Reflect State Of Insurance Fund

    09/27/2013 7:37:47 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 09/27/2013 | Anthony B. Sanders
    It’s official. The FHA is crawling to Treasury for $1.7 billion. That is, more gruel. And the FHA blames senior citizens for their plight. Washington (AP) — A federal housing agency says it needs a $1.7 billion bailout from the Treasury to cover projected losses in a mortgage programs for seniors. At issue are reverse mortgage programs, which allow seniors to borrow against their homes for everyday living expenses. Carol Galante is Federal Housing Administration Commissioner. Galante wrote Congress Friday that her agency will withdraw the money from the Treasury before the fiscal year ends Monday. Congressional approval is not...
  • FHA To Ask Treasury For More Gruel (FHA GAAP Net Worth At -$26.68 Billion)

    09/25/2013 5:08:42 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 09/25/2013 | Anthony B. Sanders
    The Federal Housing Administration, weighed down by losses on souring loans, will likely need a cash infusion from the U.S. Treasury for the first time in its nearly 80-year history when the current budget year ends, according to sources familiar with the matter. The agency, which offers private mortgage lenders guarantees against homeowner default, has nearly exhausted its reserves for the mortgages it backs, making it necessary for the government agency to turn to the Treasury Department for a cash injection. The FHA has never needed to tap the Treasury before because it has been able to take other actions,...
  • Surge In HARP: Mortgage Applications Rise 5.53%, New Home Sales Back To 1982 Levels

    09/25/2013 11:49:23 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 09/25/2013 | Anthony B. Sanders
    A bit of good news for the economy. According to the Mortgage Bankers Association, mortgage applications rose from the previous week fr 5.53% while new home sales rose 421k in August. mbaststs0925134 The recent downward trend in the Bankrate 30 year fixed-rate mortgage has help lift sagging mortgage purchase applications by 6.65%. mbapurchbr092513 Mortgage refinancing rose 4.86% with the same decline in the 30 year fixed-rate. The refinance share of mortgage activity was unchanged at 61 percent of total applications from the previous week. The HARP share of refinance applications increased to 41 percent from 40 percent the week before,...
  • Case-Shiller House Prices Rose Less Than Expected At 0.62% MoM (12.39% YoY)

    09/24/2013 6:44:37 AM PDT · by whitedog57
    Confounded Interest ^ | 09/24/2013 | Anthony B. Sanders
    The S&P Case-Shiller house price index was released this morning for July. The seasonally adjusted index rose 0.62% in July versus an expectation of 0.80%. cshp The rate of growth in house prices is slowing down. csmomjuly13 Here is the Case-Shiller 20 city index against the Loan Performance house price index (yellow). csloanhp For the non seasonally adjusted types, Case-Shiller rose 1.8% in July. All 20 metro areas saw gains in house prices. For the SA measure, only Cleveland and Minneapolis had declines. csmtreo092413 And all this despite mortgage purchase applications remaining at 1997 levels. mbaplt091813
  • A Preview Of Tomorrow’s Case-Shiller House Price Report (Survey Says +0.80%)

    09/23/2013 2:02:08 PM PDT · by whitedog57
    Confounded Interest ^ | 09/23/2013 | Anthony B. Sanders
    Tomorrow at 9am EST, the S&P Case-Shiller house price index will be released. The survey of economists is for a print of +0.80% increase. csfore The high forecast? Lea Tyler from Oxford Economics at +2.50%. The low forecast? E. Green/M. Mulrain at TD Securities at 0.40%. We can look at CoreLogic’s Loan Performance Index for a peak at what CS might do for July. cslp CoreLogic’s house price index rose more than 0.80 for July, so we shall see about Case-Shiller tomorrow. But this continues to be a low mortgage purchase application recovery in prices.
  • Activist Regulator: FHFA Campaigning For Negative Equity Borrowers To Refinance Their Mortgage

    09/23/2013 7:15:37 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 09/23/2013 | Anthony B. Sanders
    Now, this is a switch. During the housing bubble, regulators were criticized for being asleep at the wheel. Now at least one regulator is assuming the role of consumer activist for mortgage refinancings. A U.S. regulator is starting a campaign to encourage as many as 2 million borrowers with mortgages backed by Fannie Mae and Freddie Mac to refinance with a government program for properties that have lost value. Officials at the Federal Housing Finance Agency convened focus groups this year to find out why borrowers paying interest rates as high as 7 percent hadn’t yet tried to lower their...
  • Fannie Mae: If Same Standards As Today, Delinquencies Would Have Been A Quarter As High

    09/20/2013 2:23:18 PM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 09/20/2013 | Anthony B. Sanders
    Fannie Mae, the mortgage giant in conservatorship, is making a pitch to investors to purchase their risk-sharing bonds. The pitch? Fannie Mae has better standards than it did during the housing bubble. If Fannie Mae standards during housing boom were similar to today, delinquencies would have been as little as a quarter as high, according to data in presentation posted on its website as the company woos investors for new risk-sharing notes. • 12.4% of 2007 vintage Fannie mortgages (in 60-80% LTV category) has ever been 180 days delinquent, excluding loans liquidated or delinquent in first 6 months. • 3%...
  • Will Trapped Loans Snap Richmond's Home Scheme?

    09/20/2013 9:43:07 AM PDT · by WayneLusvardi ^ | September 20, 2013 | Wayne Lusvardi
    The City of Richmond’s move to seize the loans of over-mortgaged homes can continue, U.S. District Court Judge Charles Breyer ruled this week. According to the San Francisco Chronicle, the reason was because “he felt the case, brought by Wells Fargo and Deutsche Bank on behalf of holders of loans on over-mortgaged homes, was not ‘ripe for determination’ since Richmond had not exercised eminent domain and might never do so.” Despite an initial win in federal court, will Richmond first have to prove that loans on over-mortgaged homes in its city are “trapped” to meet the “blight” criteria of California...
  • The New Credit Supercycle? Subprime Auto And Student Loans (Mortgages Next?)

    09/20/2013 7:58:33 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 09/20/2013 | Anthony B. Sanders
    The last credit supercycle, the housing bubble and easing of mortgage credit, almost took the US economy out. But of course, nothing ever changes. That was the theme of the classic Bernard Malamud novel “The Natural” where Roy Hobbs strikes out in the climactic moment (Robert Redford hits a titanic home run in the movie to win the game defeating the entire message of the Malamud novel). Take auto loans and student loans, for example. student-debt-is-the-only-kind-of-household-debt-that-rose-during-the-recession-its-now-the-second-largest-consumer-debt-category-after-mortgages The average loan-to-value ratio, or LTV, on vehicle sales to consumers with spotty credit has risen to 114.5 percent this year from about 112...