Keyword: mortgages

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  • Millions of 'underwater' homeowners are trapped

    03/17/2015 9:38:51 PM PDT · by george76 · 104 replies
    CNBC ^ | 3- 17 -2015 | Diana Olick
    Some 5.4 million homes, or 10.4 percent of all homes with a mortgage, were still in a negative equity position, or "underwater," in the fourth quarter of 2014, according to CoreLogic, as their owners owe more on the mortgage than the home is currently worth. This is down considerably —18.9 percent, from a year ago—but it still keeps these borrowers from putting their homes on the market, because they would lose money. .. Additionally, of the 49.9 million U.S. homes with a mortgage, approximately 10 million (20 percent) have less than 20 percent equity, and 1.4 million have less than...
  • The World's Next Mortgage Crisis? (Europe)

    01/31/2015 5:03:40 PM PST · by Lorianne · 5 replies
    The Atlantic ^ | 29 January 2015 | David Frum
    My breakfast companion looked gloomy. He’d flown into Washington from Vienna the day before. When he deplaned, he found a shocking email waiting for him: a demand from his banker for immediate payment of €12,000. Although a resident of Austria, he had taken a home mortgage in Swiss francs, which carried a lower interest rate than mortgages in euros. But 48 hours before he had arrived in the United States, the Swiss franc had surged by 20 percent against the euro. That currency appreciation had wiped out his equity in the house. His frightened banker wanted a new infusion of...
  • In Denmark You Are Now Paid To Take Out A Mortgage

    01/30/2015 1:13:58 PM PST · by Kartographer · 18 replies
    Zerohedge ^ | 1/30/15 | Tyler Durden
    The interest rate has balanced around 0 in a level between minus 0.03 percent plus 0.03 percent. Most have paid a modest positive interest rate, but there are so few who have had a negative rate. It is quite an unusual situation, says Lise Nytoft Bergmann. It is residential customers who have chosen to stick with F1-loan that now benefit from the negative interest rate. F1 loan form has otherwise been strong returns in recent years in favor of fixed interest loan. Although interest rates are negative, it is not something that can be felt by customers as contributions and...
  • Swamped by an underwater home

    01/31/2015 6:50:08 AM PST · by dynachrome · 120 replies
    Washington Post ^ | 1-26-15 | Kimbriell Kelly
    When they moved into the house in November 2005, Kofi was earning $82,740 as an IT consultant for a government contractor, and Comfort, then 43, was making $30,000 as an administrative assistant. But in the overheated mortgage market of the time, they said everyone told them that they could buy a $600,000 house. They made a $60,000 down payment and all their mortgage payments for more than 2½ years — through September 2008. But the house was financed with subprime loans, which reset to higher rates after short time periods, creating what are known as “shock payments.” The Boatengs said...
  • Fannie, Freddie 3%-down mortgages can be safe, FHFA director says

    01/27/2015 10:15:40 AM PST · by Oldeconomybuyer · 15 replies
    Market Watch ^ | January 27, 2015 | By Steve Goldstein
    WASHINGTON — Mortgages with low down payments can be just as safe if other underwriting conditions are met, a federal housing regulator said Tuesday. Mel Watt, the director of the Federal Housing Finance Agency, was testifying in front of the House Financial Services Committee, after Fannie Mae FNMA, +0.47% and Freddie Mac FMCC, +0.47% both started making mortgages available to those who make down payments of just 3%. That has raised the ire of Republicans, who say the move risks a repeat of the housing bubble. “All things being equal, is a 3% down loan riskier to the taxpayer than...
  • How Many Homeowners Have Paid Off Their Mortgages?

    12/11/2014 7:21:10 PM PST · by SeekAndFind · 63 replies
    Five Thirty Eight ^ | 12/11/2014 | Mona Chalabi
    Dear Mona,It seems like homeownership is a common data filter in the social sciences. But nearly everyone I know who “owns a home” is paying a mortgage. How many “homeowners” have actually paid off their houses?John, 34, Mount Vernon, Washington Dear John,Your question is an important one, not only because home ownership can have big consequences for the economy, but because 56 percent of all the housing units in America (that includes trailers, apartments and houses) are owned by the people who live in them.According to last year’s American Community Survey, one in three of those owner-occupied housing units doesn’t...
  • More Americans to buy homes with 3 percent down

    12/10/2014 7:21:18 AM PST · by TurboZamboni · 65 replies
    Pioneer Pres/AP ^ | 12-9-14 | Josh Boak
    WASHINGTON (AP) — Some Americans will soon be able to buy a home with a down payment as low as 3 percent, compared with the current minimum of 5 percent, the mortgage giants Fannie Mae and Freddie Mac say. The new lending guidelines announced by the companies Monday are designed to help more low-income and first-time buyers afford homes. Millions of Americans lost their savings or no longer had the income needed to set aside money for a home in the aftermath of the 2008 financial crisis and the Great Recession. That has held down the sales of houses and...
  • The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare (Fake Story)

    11/08/2014 9:50:08 AM PST · by Bigun · 14 replies
    Rolling Stone ^ | November 6, 2014 | Matt Taibbi
    Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking By Matt Taibbi | November 6, 2014 "It was like watching an old lady get mugged on the street," she says. "I thought, 'I can't sit by any longer.'" Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing. Back in 2006, as a...
  • Making It Easy to Predict the Next Financial Crisis

    10/30/2014 2:57:56 PM PDT · by Sean_Anthony · 5 replies
    Canada Free Press ^ | 10/30/14 | Alan Caruba
    Republicans are the adults in Congress while the Democrats, liberal to the core, will never admit we are being set up for another financial crisis It is a cliché, but true, that history repeats itself. This is largely due to the failure of each new generation to learn anything from the past as well as the human tendency toward the bad habits of greed and power-seeking. Only the names and faces change. That is why the next financial crisis is entirely predictable. On October 23, The Wall Street Journal had an article, “Relaxed Mortgage-Lending Rules Clear Final Hurdle.” The financial...
  • Underwriting the Next Housing Crisis

    11/02/2014 1:27:31 PM PST · by reaganaut1 · 30 replies
    New York Times ^ | October 31, 2014 | PETER J. WALLISON
    WASHINGTON — SEVEN years after the housing bubble burst, federal regulators backed away this month from the tougher mortgage-underwriting standards that the Dodd-Frank Act of 2010 had directed them to develop. New standards were supposed to raise the quality of the “prime” mortgages that get packaged and sold to investors; instead, they will have the opposite effect. Responding to the law, federal regulators proposed tough new standards in 2011, but after bipartisan outcries from Congress and fierce lobbying by interested parties, including community activists, the Obama administration and the real estate and banking industries — all eager to increase home...
  • US Homeownership Rate Drops To 1983 Levels: Here's Why

    10/28/2014 9:32:40 AM PDT · by SeekAndFind · 13 replies
    Zero Hedge ^ | 10/28/2014 | Tyler Durden
    The last time US homeownership declined down to 64.4% (which the Census Bureau just reported is what US homeownership declined to from 64.7% in Q2), was back in the fourth quarter of 1983. It goes without saying that this is about the bearishest news possible for those few who still believe in the American homewonership dream. Of course, those who have been following real-time rental market trends would be all too aware there is no rebound coming to the homeownership rate. The reason is simple: increasingly fewer can afford to buy, instead having no choice but to rent, which...
  • Tight Credit? Why Ben Bernanke Couldn’t Refinance His Mortgage

    10/03/2014 12:28:19 PM PDT · by right-wing agnostic · 15 replies
    The Wall Street Journal ^ | October 2, 2014 | NICK TIMIRAOS
    Just how inflexible are lending standards these days? Ben Bernanke said at a conference Thursday that he’d been unable recently to refinance his mortgage. “It’s entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions,” he said at a conference in Chicago, according to Bloomberg News. But wait. Surely a man with high income, lots of equity in his home, good credit and a solid net worth must be able to get a mortgage. Mr. Bernanke stepped down as the chairman of the Federal Reserve in January and joined the Brookings Institution as a...
  • Here's The Salary You Have To Earn To Buy A Home In These 13 Major US Cities

    09/03/2014 7:18:47 AM PDT · by SeekAndFind · 39 replies
    Business Insider ^ | 09/03/2014 | Libby Kane
    In May, we reported on the salary needed to buy a home in 12 major U.S. cities, based on first-quarter data analyzed by mortgage website The site has updated its data according to 2014 second-quarter numbers, which we've listed here (with the addition of Washington, D.C.).Spoiler alert: It's only gotten more expensive.The site looked at median home prices from the National Association of Realtors, along with interest rates for common 30-year, fixed-rate mortgages and property taxes and insurance costs, to figure out how much money it would take to pay a median-priced home's mortgage principal, taxes, and insurance — and how...
  • Exclusive: Too big-to-fail pension insurer agrees to liquidation trust in ResCap NY bankruptcy

    05/23/2014 4:18:34 AM PDT · by Opinionatedtoday · 5 replies ^ | Marinka Peschmann
    Is a taxpayer bail-out inevitable? If you think it is only your mortgages and homes which are at stake in the largest bankruptcy in history being heard in the Southern District of New York’s Bankruptcy Court before Judge Martin Glenn, think again. Embedded within the claims/creditor section in the simultaneous Chapter 11 bankruptcy filings of 51 residential mortgage companies is Pension Benefit Guaranty Corporation (PBGC). Established in 1974, PBGC is a federal chartered agency that insures more than 26,000 private-sector pension plans. The agency protects the retirement incomes of over 44 million Americans. As of 2012, PBGC is running a...
  • 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....
  • U of M study sees signs of mortgage redlining in Twin Cities

    04/11/2014 7:19:24 AM PDT · by TurboZamboni · 24 replies
    MPLS Star & SIckle ^ | 4-9-14 | JENNIFER BJORHUS
    Minority residents in the Twin Cities are much more likely than white people of similar incomes to be rejected for a mortgage, whether they’re buying a home or refinancing. If the home sits in a diverse or mainly nonwhite neighborhood, the application is also more likely to get the boot. Those are the findings of a new study from the University of Minnesota Law School suggesting that mortgage redlining remains alive and well in the Twin Cities. The report suggests that while banks may have justifiably tightened up credit standards, they have swung so far that they are cutting off...
  • This Legislation Would Let Government Take Over U.S. Mortgage Market

    04/08/2014 12:26:39 PM PDT · by lowbridge · 13 replies
    heritage ^ | april 8, 2014 | nobert Michel
    Even worse, the U.S. Senate is poised give us Fannie–Freddie 2.0 in the new housing reform bill that Senators Tim Johnson (D., S.D.) and Mike Crapo (R., Idaho) have released. The Johnson-Crapo bill would wind down the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, but would also replace them with a new government agency that expands the federal government’s grip on the housing market. If the Johnson-Crapo housing bill is adopted, the federal government will have effectively taken over the U.S. mortgage market.
  • Wells Fargo cuts 700 mortgage jobs

    02/27/2014 5:50:54 AM PST · by 2ndDivisionVet · 16 replies
    The Minneapolis/St Paul Star Tribune ^ | February 27, 2014 | Jennifer Bjorhus
    Wells Fargo cuts 700 employees, including 203 in the Twin Cities, as demand for mortgages declines.Wells Fargo & Co. said Wednesday that it is cutting 700 employees, including 203 in the Twin Cities, as demand for mortgages continues to shrink. The San Francisco-based bank said it notified affected employees Wednesday, and that almost all of them work at the Wells Fargo Home Mortgage campus in south Minneapolis. Some work elsewhere in the Twin Cities. The cuts follow scattered layoffs in the Twin Cities in January in which Wells Fargo laid off fewer than 30 mortgage-related workers. “We currently expect mortgage...
  • 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...
  • LETTER: Ralph Nader questions Obama administration’s ‘legal authority’ to shut out Fannie and

    02/23/2014 8:52:41 AM PST · by ColdOne · 26 replies ^ | 2/22/14 | Patrick Howley
    full title...LETTER: Ralph Nader questions Obama administration’s ‘legal authority’ to shut out Fannie and Freddie shareholders from future profits....Political activist and former presidential candidate Ralph Nader is questioning the “legal authority” of the Obama administration’s secret decision to prevent Fannie Mae and Freddie Mac shareholders from obtaining any future earnings in the government sponsored enterprises (GSE). Nader slammed the administration’s actions in a letter he sent to Treasury Secretary Jack Lew, which was obtained by The Daily Caller. The administration’s decision to shut out shareholders means that the mortgage-lending giants Fannie Mae and Freddie Mac, which received a $189.5...
  • African-Americans squeezed out of the housing market

    01/27/2014 10:48:32 AM PST · by rightwingintelligentsia · 69 replies
    CNN Money ^ | January 27, 2014 | Les Christie
    More African-Americans are being squeezed out of the housing market. Not only are they less likely to apply for a mortgage than any other ethnic group, but African-Americans are also 2.4 times more likely to get denied a mortgage than Whites, a recent study conducted by Zillow and the National Urban League found.
  • All-Cash Home Sales Hit Record 42% of Sales

    12/22/2013 10:28:58 AM PST · by Kaslin · 57 replies ^ | December 22, 2013 | Mike Shedlock
    Even though household formation by millennials is at a record low percentage, home sales are at modest levels thanks to investor all-cash buying. Market-Watch notes All-Cash Home Sales Reach New High. More Americans are buying homes in all-cash deals, according to a new report. But real-estate experts say this increase may not be a good sign for the health of the housing market, which may also be impacted by the Federal Reserve’s decision to pull back on its bond-buying program. All-cash purchases accounted for 42% of all sales of residential property in November 2013, up from 39% during the previous...
  • Sperling Says No Nein To Private Recapitalization Of Fannie And Freddie (Same Day As Reid)

    11/24/2013 2:56:47 PM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 11/24/2013 | Anthony B. Sanders
    As many are painfully aware, the mortgage giants Fannie Mae and Freddie Mac collapsed in price from Q4 2007 to Q4 2008. Fannie Mae stock was trading at $60.81 on September 28, 2007 and fell to $1.71 by September 30, 2008. That is quite a drop. But Fannie Mae’s equity is now at $2.73 while Freddie Mac’s is at $2.52 per share. Both started showing signs of life in March 2013, spiked on May 28th, fell again, but has regained upward momentum since September. Who is in the running to purchase Fannie Mae and Freddie Mac and provide private market...
  • De Blasio ally open to city seizing foreclosed homes from banks (New York City)

    11/15/2013 2:06:55 PM PST · by 2ndDivisionVet · 54 replies
    The New York Post ^ | November 15, 2013 | Yoav Gonen
    The most left-leaning candidate for City Council speaker says she would consider using eminent domain to seize homes that are in foreclosure from banks – a move that could leave taxpayers subsidizing the mortgages. Melissa Mark-Viverito (D-Manhattan/Bronx), a close ally of Mayor-elect Bill de Blasio, said she was open to the proposal when asked about it during a forum in Queens Thursday night featuring five main contenders in the race for speaker. “The idea of using eminent domain in a reverse way… as a way of seizing those properties from the bank as a way of making those homes affordable...
  • Edmond mortgage company Adfitech to lay off 320 employees (Largest employer in town)

    10/20/2013 7:21:57 PM PDT · by 2ndDivisionVet · 13 replies
    The Oklahoman ^ | October 18, 2013 | Paul Monies and Brianna Bailey
    EDMOND — Mortgage services company Adfitech Inc., Edmond's largest private employer, said Friday it would lay off half its workforce in December. The company said it would lay off 320 employees because of “abrupt changes in customer needs.” The layoffs are scheduled to take effect Dec. 20. Adfitech said the layoffs were necessary for the long-term viability of the company, which provides outsourcing services to major lenders, banks and mortgage companies. Adfitech has about 620 employees in Edmond, according to a March report from the Edmond Economic Development Authority. After the planned layoffs, the company will fall behind OU Medical...
  • RMBS: Fannie Risk-Sharing Notes Trade Tighter As Wells Fargo Cuts More Home Loan Jobs

    10/17/2013 9:57:17 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 10/17/2013 | Anthony B. Sanders
    Fannie Mae Risk-sharing Notes are trading tighter, according to analysts at Credit Suisse. Mid-market spreads for Fannie Mae risk-sharing CAS securities tighter than pricing levels on Oct. 15, Credit Suisse analysts say in report today. • M1 at +167bps vs. +200 • M2 at +482bps vs. +525 • Both had priced “significantly tighter than initial guidance” • CS, BofAML were joint leads • Freddie Mac STACR indicative levels at +210, +535, CS says • Priced at +340, +715 in July • NOTE: ~75 investors participated in $675m Fannie deal, ~50 in $500m Freddie deal, meaning typically only small blocks trade,...
  • Shut-down Slams Door on USDA (U.S. Department of Agriculture) Mortgages

    10/14/2013 3:44:16 PM PDT · by Libloather · 40 replies
    Daily Yonder ^ | 10/10/13
    A sign advertising low-interest housing loans at the Crescent Shores Subdivision in Lincoln, Delaware. The government shut-down has halted the processing of these loans, which are aimed at low- and moderate-income buyers. The week-old federal government shutdown is a disaster on many levels. For rural America, one major impact is in the area of housing. For the near future, low- and moderate-income homebuyers who have applied for mortgages guaranteed or made directly by the U.S. Department of Agriculture (USDA) Rural Housing Service are out of luck. So are very low-income homeowners seeking repair grants or loans.
  • PHH slashes mortgage origination department in Jacksonville; 365 jobs lost

    10/09/2013 10:16:00 PM PDT · by 2ndDivisionVet · 1 replies
    The Jacksonville Business Journal ^ | October 3, 2013 | Timothy Gibbons, Managing Editor
    PHH Mortgage is laying off a third of its Jacksonville work force, cutting 365 positions by December. The move, of which employees were notified Thursday, leaves about 700 workers left on the First Coast. Most of those that are being laid off work in the mortgage origination department. They will received 60 days pay in lieu of notice, said Dico Akseraylian, vice president of communications for parent company PHH Corp. The move comes on the heels of Wells Fargo and Chase announcing layoffs in their mortgage department. PHH's reason for the cuts are similar to those of other industry players,...
  • Continued Shutdown Bad News For Mortgage Market (WORSE Than Already??)

    10/04/2013 8:35:52 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/04/2013 | Anthony B. Sanders
    What does the government shutdown mean for the mortgage market? Fannie Mae and Freddie Mac aren’t affected by the shutdown. While the FHA is still processing loans, it’s operating with a vastly reduced staff, which could lead to delays. The FHA is part of the Department of Housing and Urban Development’s Office of Housing, which has just 64 of 2,972 employees reporting to work right now. The biggest issue facing the mortgage market is that the Internal Revenue Service isn’t issuing Form 4506-T, which is what most lenders currently use to verify borrowers’ incomes. For loans ready to close now,...
  • Daunting Gap? Homebuilder Index Biggest Miss To Expectations Since April With Rising Mortgage Rates

    09/17/2013 8:37:14 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 09/17/2013 | Anthony B. Sanders
    The “Goodbye Larry! (Summers)” Treasury yield decline yesterday was short lived. After Summer pulled out as a candidate for Federal Reserve Chairman, the US Treasury 10 year yield fell 11 basis points yesterday morning, but the exuberance quickly went away. ust10091713. Speaking of interest rates, the National Association of Home Builders Market Index was flat for September compared to August, but missed expectations by the most since April. nahbhbindex09171`3 If we compare the NAHB Index with new home sales, we see a daunting gap between builder “optimism” and reality. nahbnhs091713. And if we include the Bankrate 30 year rate, we...
  • Americans Still Suffering 5 Years After Lehman Bros Failure (Not What Obama Said)

    09/16/2013 11:48:50 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 09/16/2013 | Anthony B. Sanders
    President Obama gave a speech touting how far the US has come since the jarring Lehman Brothers collapse five years ago. “The U.S. has come a long way since September 2008,” according to President Obama. Well, not in terms of household income since REAL median household income continues to decline. household-income-monthly-median-growth-since-2000 (1) And the less than 1% of the population continues to suffer. [Note how the top 1% fared under President Clinton!] inomr Mortgage purchase applications have tanked along with the employment-to-population ratio. empopombapurch And the labor force participation rate continues to fall along with M2 Money Velocity. lfpm2v We...
  • Gov’t Karma: Gov’t Spending 24.4% Of GDP, Indicators Fall, 43% of Americans Pay NO Federal Taxes

    09/10/2013 11:30:31 AM PDT · by whitedog57 · 21 replies
    Confounded Interest ^ | 09/10/2013 | Anthony B. Sanders
    John Lennon said it best. Sort of. “Instant Government Karma’s gonna get you Gonna knock you right in the head You better get yourself together Pretty soon your gonna be dead Thanks to the rise of social programs and wars, government spending has exploded up to 24.4% of Real GDP. govtsizewh That is a whopping 1/4 of the total economy! Let’s look at a few empirical oddities. 1. Mortgage purchase applications are falling with the employment to population rate. empopombapurch 2. M2 Money Velocity is falling with labor force participation rate. lfpm2v 3. 43% of Americans pay no Federal taxes....
  • It's Official: Affordable-Housing Zealots Hijack Mortgage Reform

    08/30/2013 5:04:45 PM PDT · by jazusamo · 17 replies ^ | August 30, 2013 | Editorial
    Housing: Under pressure from civil-rights activists, federal bank regulators have killed tougher mortgage rules requiring minimum down payments and credit scores for loans bundled into securities. Here we go again. The Fed, FDIC, SEC and three other agencies regulating Wall Street have adopted the same weak underwriting standards the Consumer Financial Protection Bureau set earlier this year for loans. The Dodd-Frank Act was supposed to require banks and other issuers of mortgage-backed securities to retain 5% of the credit risk of the bonds on their books to avoid the moral hazard that led to the financial crisis, when lenders quickly...
  • College Tuition And House Prices Climbing Fast (Case-Shiller House Price Index Up 0.89% In June)

    08/27/2013 6:33:42 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 08/27/2013 | Anthony B. Sanders
    The S&P Case-Shiller repeat sales house price index for 20 metro areas rose 0.89% in June, and rose 12.07% YoY. Now THAT is a big increase in house prices! cshp082713 House prices are back to October 2008 levels. cschart082713 But Case-Shiller was no surprise if you follow CoreLogic’s Loan Performance HPI that came out earlier. Atlanta was the leader on major metro areas in June. csloanhp082713 And Washington DC is the worst performing major metro (but still up 1% in June). csmetro082713 csmetro2082713 House prices continue to rise despite flat-lined mortgage purchase applications. cs20mbap082713 Inflation in college tuition is rivaling...
  • Calif. city looks to seize loans to ease mortgages (Richmond)

    08/25/2013 9:53:31 AM PDT · by Olog-hai · 29 replies
    Associated Press ^ | Aug 25, 2013 9:39 AM EDT | Paul Elias
    When the mayor of Richmond, Calif., and a gaggle of activists and homeowners showed up at the Wells Fargo Bank headquarters in downtown San Francisco this month, they were on a mission to speak with the bank’s chief executive. They wanted the bank to drop a lawsuit aimed at stopping Richmond’s first-in-the-nation plan to use the government’s constitutional power of eminent domain to “seize” hundreds of mortgages from Wells Fargo and other financial institutions. … Wells Fargo, three other banks and even the Federal Housing Finance Agency think otherwise. The banks have filed two lawsuits alleging that the plan is...
  • Bank of Japan and Bank of England Claim They Can Counter Fed Tapering (Kuroda-Bean at Jackson Hole)

    08/25/2013 9:30:51 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 08/25/2013 | Anthony B. Sanders
    There are more rumblings from the Jackson Hole central banker party going on in Wyoming. Central bankers from Japan and the U.K. predicted their new campaigns to encourage expansion will work, sustaining support for global growth even as the Federal Reserve considers a reduction in stimulus. As the annual gathering of central bankers and economists in Jackson Hole, Wyoming, drew to a close yesterday, Bank of Japan Governor Haruhiko Kuroda said his souped-up asset-buying “has started to exert effects” on the world’s third-largest economy. Bank of England Deputy Governor Charlie Bean said the U.K.’s pledge this month to avoid raising...
  • Fed Minutes: There Will Be Blood (Global Sovereign Yields Rise On Fed’s Hawkish Message)

    08/21/2013 11:32:28 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 08/21/2013 | Anthony B. Sanders
    Here are the minutes of the most recent FOMC meeting. Federal Reserve officials were “broadly comfortable” with Chairman Ben S. Bernanke’s plan to start reducing bond buying later this year if the economy improves, with a few saying tapering might be needed soon, minutes of their last meeting show. In other words, it was a hawkish set of minutes pointing to tapering. The reaction in the US Treasury 10 year yield? ust10082113 And agency MBS prices fell about 12 basis points. mbs082113 And the globe is awash in blood (as in rising sovereign yields). wbm082113 Here is a photo of...
  • Got Cash? Mortgage Purchase Applications Rise 1.2%, Existing Home Sales Rise 6.5%

    08/21/2013 7:52:14 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 08/21/2013 | Anthony B. Sanders
    According to the Mortgage Bankers Association (MBA), mortgage applications declined 4.56 from the previous week. mbastata082113 Most of the decline in mortgage applications was refinancing applications. They fell 7.72% from the previous and have fallen since May 1st when Treasury and mortgage rates began to rise. mbarefirates Mortgage purchase applications rose 1.2% from the previous week. And purchase applications have fallen since May 1st despite today’s report. mbapurchasefreddierate Existing home sales rose faster than expected at a rate of 6.5% versus the expectation of 1.4%. ehs082113 Of course, 60% of home sales are all cash and many are foreign and...
  • [California] Pricey homes in Richmond's eminent domain plan

    08/20/2013 3:40:35 PM PDT · by Lonely Bull · 3 replies, San Francisco Chronicle ^ | Tuesday, August 20, 2013 | Carolyn Said
    Richmond's controversial plan to seize underwater mortgages through eminent domain includes loans for at least two homes purchased for over $1 million as well as other high-end properties - a revelation that appears to undermine the city's argument that the plan would combat blight. The city is pursuing mortgages with balances ranging from $98,000 to $1.12 million, according to data collected by Marc Joffe, an analyst who received the property addresses, loan balances, offer amounts and other information through a California public records request and shared them with The Chronicle. --SNIP-- Eminent domain is the seizure of private property for...
  • Holder and FBI admit lying about data released before election last year

    08/15/2013 7:44:21 AM PDT · by EXCH54FE · 17 replies
    American Thinker ^ | Aug 15, 2013 | Thomas Lifson
    In their efforts to promote the re-election of Barack Obama, our nation's premier law enforcement agencies presented false data to the American public about a "crackdown" on mortgage fraud. Fox News reports: The Justice Department and FBI have quietly acknowledged they grossly overstated the scope of a mortgage fraud crackdown, which the administration heralded with much fanfare a few weeks before last year's presidential election. According to a memo circulated by the FBI and a correction posted online by the Justice Department, the number of defendants, the number of victims and the size of the losses are, in reality, a...
  • Elite Housing Recovery: Million Dollar Home Sales Jump As Middle Class Sucks Wind

    08/09/2013 1:36:15 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 08/09/2013 | Anthony B. Sanders
    Home sales from Los Angeles to Charleston, South Carolina that are priced at more than $1 million are gaining at triple the pace of the broader market, according to real estate research firm DataQuick Inc. According to Susan Wachter, a professor of real estate and finance at the University of Pennsylvania’s Wharton School and an architect of Clinton’s housing policy (The National Homeownership Strategy: Partners in the American Dream), wealthy purchasers, helped by gains in equities, are diving into real estate a year after a recovery began in the housing market when less-well-heeled buyers rushed to take advantage of record-low...
  • Flashback: When Palin said Fannie/Freddie were too expensive to taxpayers in ’08, it was a “gaffe”

    08/06/2013 11:14:17 PM PDT · by 2ndDivisionVet · 10 replies
    Hot Air ^ | August 6, 2013 | Mary Katharine Ham
    First off, I welcome President Barack Obama’s call to shutter mortgage giants (and giant pains in the public arse) Fannie Mae and Freddie Mac. Many conservatives and libertarians have been beating that drum since 2008 and before, back when Obama was voting present on regulation of Fannie/Freddie and taking more in donations from them than all but one lawmaker. Now, it seems, we can work together on this project, as Obama pushed a Senate plan to close Fannie and Freddie during an economic address in Arizona: But as home prices rise, we can’t just re-inflate a housing bubble. That’s the...
  • Obama to urge Congress in speech to shutter Fannie Mae and Freddie Mac

    08/06/2013 11:53:45 AM PDT · by ColdOne · 43 replies ^ | 8/6/13 | ap/foxnews
    President Obama will urge Congress to shutter Fannie Mae and Freddie Mac, the mortgage-giants bailed out by the government in 2008, as part of a strategy to buffer taxpayers from future housing market downturns. In a speech Tuesday in Phoenix, Obama will call for transitioning the business model of Fannie and Freddie into a system where "private capital must be wiped out before the government pays on any form of catastrophic guarantee," a senior administration official said. Obama will also renew his calls for sweeping mortgage refinancing legislation when he travels to Phoenix Tuesday. Arizona's desert capital was the epicenter...
  • Obama to insist market provides 30-year mortgages

    08/05/2013 6:35:45 PM PDT · by Nachum · 30 replies
    Washington Post ^ | 8/5/13 | Zachary A. Goldfarb
    President Obama on Tuesday will for the first time insist that any future housing system in the United States makes 30-year mortgages widely available to borrowers, senior administration officials said, preserving a linchpin of the American economy but also continuing to expose taxpayers to risk from another housing meltdown. (Snip) That will require, officials said, some form of government guarantee that means lenders will be reimbursed by taxpayers in the event of a housing catastrophe like the one that occurred several years ago. Traveling to Phoenix on Tuesday, Obama is planning to call for a new
  • Surprise, Surprise, Surprise! Fed Leaves Funds Target Unchanged (Waiting For Godot)

    07/31/2013 11:34:19 AM PDT · by whitedog57 · 6 replies
    Confounded Interest ^ | 07/31/2013 | Anthony B. Sanders
    Here is the written statement from the Federal Reserve Board of Governors. Surprise, surprise, surprise! The Fed Funds Target remains unchanged. fedfundstarget The Taylor Rule, believe it or not, called for a LOWERING of the Fed Funds Target. tayloru;e073113 The Federal Reserve said it will maintain its $85 billion in monthly bond purchases and persistently low inflation could hamper the expansion. fedbal073113 The 10 year Treasury rate rose this morning, then fell on The Fed’s announcement. ust10073113 The Dow Jones Industrial Average had a similar reaction. dow073113 The announcement said that The Fed will remain accommodative until the labor market...
  • Mortgage Applications Drop 3.7% As Homeownership Rate Falls To 18 Year Lows

    07/31/2013 6:25:16 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 07/31/2013 | Anthony B. Sanders
    According to the weekly Mortgage Bankers Association (MBA) mortgage application survey released this morning, mortgage applications drop 3.7% from the previous week. mbastats073113 Mortgage purchase applications fell 3.43% from the previous week. And since May 1st, purchase applications have fallen with rising mortgage rates (the Mortgage Bankers 30 year effective rate). mbapurchmayday073113 The longer term view of purchase applications (and the MBA mortgage rate index) reveals the zone of slow/no growth in purchase applications since June 2010. mbapltrtes And if I overlay the national homeownership rate on the MBA mortgage purchase application index, we can the relationship, until 2010. Since...
  • Obama's HAMP Program a Stunning Success

    07/25/2013 7:51:27 AM PDT · by Kaslin · 8 replies ^ | July 25, 2013 | Mike Shedlock
    Obama had lofty goals of helping 4 million Americans keep their homes with his Home Affordable Mortgage Program (HAMP). Here are some quick facts:   HAMP modified 1.2 million mortgages (70% less than the target) 306,000 re-defaults Another 88,000 at risk The re-default rate is an alarming 30% The re-default rate of those in since 2009 is 46% CNNMoney has additional details in Watchdog: Borrowers in Obama housing program re-defaulting.   Borrowers who received help through the government's main foreclosure prevention program are re-defaulting on their mortgages at alarming rates, a federal watchdog said in a report released Wednesday.  Nearly 1.2 million...
  • Spain’s New Squatters

    07/28/2013 2:20:43 PM PDT · by 2ndDivisionVet · 30 replies
    MALAGA, Spain, Jul 28 (IPS) - "You live there for free, don't you?" asked a woman as she passed by the Buenaventura "corrala", a community in a building in this southern Spanish city occupied since February by families evicted from their homes for falling behind in their mortgage payments due to unemployment. "We don't want any handouts. We want to pay, through a social rent scheme," replied 42-year-old Yuli Fajardo, who was living in a tent before she found shelter along with some 40 other people in one of the 13 spacious apartments in this four-storey block of flats in...
  • Regulators Push Relaxation of Risk Retention for 30 Year Fixed-rate Mortgage (and Others)

    07/26/2013 8:32:44 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 07/26/2013 | Anthony B. Sanders
    The Dodd-Frank banking bill is slowly unraveling. “Concerned that tougher mortgage rules could hamper the housing recovery, regulators are preparing to relax a key plank of the rules proposed after the financial crisis (Dodd-Frank). The watchdogs, which include the Federal Reserve and Federal Deposit Insurance Corp., want to loosen a proposed requirement that banks retain a portion of the mortgage securities they sell to investors, according to people familiar with the situation.“ Dodd-Frank required that issuers should retain 5% of all mortgage-backed securities issued without government backing. So, regultors are considering lowering the skin in the game requirement). Congress directed...
  • Mortgage Purchase Applications Drop 2.07%, Average Mortgage Size Drops

    07/24/2013 7:18:50 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 07/24/2013 | Anthony B. Sanders
    I am speaking at the Cleveland Fed on September 19th concerning “The New Housing Finance System: Are We There Yet?” But with the mortgage market shrinking, I may not have to speak at the conference. mbastats072413 According to the Mortgage Bankers Association weekly survey, mortgage purchase applications fell 2.07% from the preceding week. mbapurchase072413 Mortgage rates (using Bankrate’s 30 year fixed-rate index) have been generally rising since May 1st (pink box), but falling since July 5th (red box). But even with falling mortgage rates, mortgage purchase applications fell last week and have been generally falling since July 5th. mbapurchmayday1 The...