On the MBA conference call concerning the “Q2 2010 National Delinquency Survey”, MBA Chief Economist Jay Brinkmann said this morning: Survey covers about 88% of mortgage market. Mixed news in Q2. Percent of loans in foreclosure down
Posts Tagged borrower
Last month, on July 15th, HUD filed a public notice in the Federal Register of tighter FHA lending requirements. The 30 day comment period is over. Jennifer Waters at the WSJ writes: FHA Gets Tougher on Mortgages Consumers looking for home loans backed by the Federal Housing Administration will face tougher hurdles and higher costs under new legislation and new rules that could take effect as soon as this month.
From Danny Hakim at the NY Times: New York Plan Makes Fund Both Borrower and Lender (ht jb) Gov. David A
From the Financial Times: FBI to target mortgage fraud The FBI is preparing to arrest hundreds of people across the US as early as next week for offences including encouraging borrowers to falsify income on mortgage applications, misleading home owners about foreclosure rescue programmes, and inflating home appraisals … The FBI is scheduled to release its 2009 mortgage report on June 17.
BofA executive Jack Schakett made some interesting comments earlier today: “There is a huge incentive for customers to walk away because getting free rent and waiting out foreclosure can be very appealing to customers.” Schakett noted that the foreclosure process is currently taking 13 to 14 months … For many the timeframe is apparently much longer. On Monday David Streitfeld wrote in the NY Times: Owners Stop Paying Mortgages, and Stop Fretting The average borrower in foreclosure has been delinquent for 438 days before actually being evicted, up from 251 days in January 2008, according to LPS Applied Analytics.
This is a follow up on the previous post on short sales and 2nd liens . (the previous post had excerpts from the NY Times, Short-Sale Program to Pay Homeowners to Sell at a Loss and WSJ Home-Saving Loans Afoot ) Just to be clear on what subordinate lien holders will receive under a HAFA short sales - from Treasury’s HAFA program Short Sale Agreement: Subordinate Liens.
"Short Sales Soar"
Feb 2
From the Las Vegas Sun: Short sales soar while foreclosure sales slacken (ht sportsfan) Short sales averaged about 7 percent to 8 percent of total [Las Vegas] existing-home closings in early 2009, but averaged 22 percent of the market by the end of the year and in early January … “We have seen a decrease in foreclosure activity in Las Vegas, which was puzzling to us,” said Daren Bloomquist, marketing manager for California-based RealtyTrac, which monitors foreclosures in Nevada.
As part of the annual budget, the Obama Administration released the underlying economic assumptions too (see Page 13 of PDF) For GDP, they are forecasting real GDP growth of 2.7% in 2010, followed by 3.8%, 4.3% and 4.2% in 2013. For unemployment, the forecast is for an average of 10% in 2010, with a decline to 9.2% in 2011, 8.2% in 2012 and 7.3% in 2013 as shown on the following graph: Click on graph for larger image in new window. The blue line is the actual historical monthly unemployment rate
I’ve excerpted below from a paper by New York Fed Researchers Andrew Haughwout, Ebiere Okah, and Joseph Tracy: Second Chances: Subprime Mortgage Modification and Re-Default Although the paper uses subprime data, the general results are applicable to all mortgages. The researchers point out that principal reductions lead to much lower redefault rates (that is obvious, but still worth noting)
CR Note: This is a guest post from albrt. Thanksgiving Weekend Mortgage Litigation Roundup CR forwarded me a couple of links recently, so I told him I’d write up a summary for your holiday weekend entertainment. I’m also including a little ubernerd bonus at the end
