April 2010

SIGTARP Chimes in on MHA and Other Attempts

Posted on Sunday, April 25, 2010

The Special Inspector General for TARP (SIGTARP) report expresses concern over voluntary portions of government programs, the fact that servicers may have interest not in line with investors and borrowers – in particular they can deny a work out even if it meets the NPV test -, the fact that simila...

PPIP Update March 2010

Posted on Sunday, April 25, 2010

In the recent second quarterly summary, a reported $10 billion in real estate assets gone bad have reportedly been purchased so far using the federal governments Legacy Securities Public-Private Investment Program (PPIP) unveiled last year to remove toxic mortgages from the system. That’s triple co...

Default Stats Update March 2010

Posted on Sunday, April 25, 2010

New CMBS defaults are up more than five times last year (1464 $1.75 billion), 34$ took place during 4th quarter. Large loans defaults also increased. 56 loans over $50 million verses only 5 in 2008, most from 2006 to 2008 vintages. 207 deals are 35.6% based on principal balance due to aggressive...

FNMA Chnages Will Allow Buying Again Sooner

Posted on Sunday, April 25, 2010

FNMA has changed the time homeowners who lose their homes will have to wait before qualifying for a FNAM loan to buy a new home again. Up until now a borrower had to wait 4 years following a DIL or 2 years following a pre-foreclosure (short sale). Now the timeline will be uniform regardless of ...

Single Female Buyers - NAR Survey

Posted on Sunday, April 25, 2010

A recent NAR survey tells us some fun things about single female home buyers; In 1995 they were 14% of the buyers. Now they are 21%, the second largest share of adult home buyers. They are 25% of all first time buyers and 17% of repeat buyers. Median home buyer age is 39 but for single fema...

Stats Update March 2010

Posted on Sunday, April 25, 2010

Default notices, scheduled auctions and bank repossessions are all measures related to mortgage foreclosures and market indicators. A total of 932,234 were properties fell into one of these buckets during the first quarter of 2010, 7% up from the quarter before and 16% up from the same quarter last...

HAMP Stats as of March 2010

Posted on Sunday, April 25, 2010

So far about 230,000 mortgages have been permanently modified. The median back end DTI is 61.3%, down from 77.5%. But that’s still too high, meaning many are still at risk of redefault. Hence the push for longer terms principal reductions and addressing firsts and seconds so homeowners can sustain...

Existing Home Sales NAR March 2010

Posted on Sunday, April 25, 2010

According to NAR existing home sales rose 6.8% across the country between February and March and are 16.1% more than March of last year. NAR says that means sales have been higher than last years levels for 20 months in a row now, but remember sales had no place to go but up since they had virtual...

Small Business Owners; Should You Lease or Rent?

Posted on Friday, April 23, 2010

Either way nows a great time. There's plenty of selection and the price is right. Lenders are also tripping over themselves to find deals that can get approved by their underwriters and owner-occupied CRE is at the top of the list. If you own your own business and want to buy an owner - occupied pr...

How to protect yourself from a landlord going into foreclosure...

Posted on Friday, April 23, 2010

Include in the lease if possible, applicable and appropriate; Disclosure requirements for any financial defaults currently existing or expected. Notice of any future defaults. An opportunity to cure such defaults. Non disturbance. Subordination and Attornment language. ...

Congressional Oversight Panel Chimes in on Treasury Programs

Posted on Monday, April 19, 2010

The COP has noted 3 concerns; 1. The pattern of providing increasingly generous incentives may backfire as lenders and servicers delay inhopes of the Feds sweeting the deal even more. 2. That many borrowers will eventually redefault. 3. That the total of announced funding for Treasury prog...

Association of Mortgage Investors Input on Solutions for Distressed homeowners...

Posted on Monday, April 19, 2010

• All modifications should include the requirement for income verification. • Second liens and other loans should be aggressively modified. • Servicer conflicts must be addressed. • Debt to income ratios must be examined and adjusted for all borrowers. • AIM supports reducing principal for under...

Default Numbers so Far 2010

Posted on Monday, April 19, 2010

More than 1.1 million loans that were current at the beginning of 2010 are now delinquent. The number of non current first mortgages and REOs is now over 7.9 million. 10.2% of borrowers are delinquent and 3.3% are in foreclosure so non current loans are at 13.5%....

Protecting Homeowners From Bank Lawyers Who Dont Follow the Rules?

Posted on Monday, April 19, 2010

Who doesn’t favor judges making sure bank’s foreclosures lawyers follow the rules? Especially where folks losing their homes who often can’t afford their own lawyers are concerned. The problem is, doing so is often detrimental to these homeowners in the long run. Having to withdraw and then re...

Coldwell Banker Survey says Folks like the Burbs...

Posted on Monday, April 19, 2010

More singles are buying homes in suburbia, reports Coldwell Banker, which conducted a nationwide survey of single home owners on the factors that motivated them to buy. Here are some figures that reflect the reasoning behind their choices: 52 percent chose the suburbs over urban or rural areas...

Some New Info

Posted on Monday, April 19, 2010

The number of new reverse mortgages is 22% less than last year. Perhaps one reason is that these loans rely on the equity a homeowner has in his home (HECM stands for Home Equity Conversion Mortgage) and we all know how much equity has disappeared. In fact HUD recently cut the amount of equity that...

LATEST FORECLOSURE NUMBERS MAY BE SCARY, BUT NEW HAFA PROGRAM IS “FORECLOSURE IN DISGUISE”

Posted on Thursday, April 15, 2010

Foreclosures are up 35% from last year and 19% from last month, the biggest increase ever. These latest numbers are said to indicate we're on pace for over 1 million in 2010. But, the really scary news will be about short sales and deeds in lieu of foreclosure under the Administration’s Home ...

Principal Write Downs

Posted on Thursday, April 15, 2010

This weeks House Financial Services Committee hearing only reinforced what our guts already to us; principal write downs could have dire impacts on the future of housing finance and consumer access to credit. Even bringing underwtaer homeowners to 100% LTV would cost banks $700 to $900 billion an...

RealtyTrac Releases Q1 2010 Numbers

Posted on Thursday, April 15, 2010

Foreclosures are up 35% from last year. You'll recall the numbers had decreased 2% in February and 10% in January (not unlike a decrease we saw in January and February last year). But the big news is that March foreclosures numbers are now up 19% from February – the biggest increase ever. 25...

The Face of Foreclosure

Posted on Tuesday, April 13, 2010

A recent study by the Florida Association of Realtors reflects some facts about the real people behind the foreclosure statistics you may not always think about; The problem is not limited to low income homeowners. Over 20% have incomes in the $50,000 to $75,000 range. Another 20% have incomes ...

Some Interesting Findings From Recent FNMA Survey..

Posted on Monday, April 12, 2010

The housing crisis has changed how Americans view homeownership, according to a survey of public attitudes by Fannie Mae. The number of people who view homeownership as a safe investment declined from 83 percent in 2003 to 70 percent in 2009. In addition: 48 percent of those surveyed said bank...

Some Interesting Findings About Florida Foreclosure Victims

Posted on Monday, April 12, 2010

Florida the board of Realtors; • 20 percent had incomes between $50,000 and $75,000; 20 percent had incomes greater than $100,000. • 55 percent had attended college or graduated. • 92 percent were married. • 35 percent had lived in their homes for 10 years or more. • 40 percent had lived in t...

Losses

Posted on Monday, April 12, 2010

Estimates now are around $370 billion in losses through 2020. ...

Whats News?

Posted on Monday, April 12, 2010

So far the estimated total is that there are about $1 trillion in second mortgages out there. About 10% of the entir emortgage nut. Many homeowners are defaulting on their first mortgage but paying the second because second payments are often owner, maybe they know second lenders ar emroe aggressi...

CAN THE GSEs BE FIXED

Posted on Friday, April 09, 2010

Of course they can! The problems have been known for years. Way back in the 1980s – before many of us could even vote - HUD studied the notion of privatizing the FNMA and Freddie. In 1986 a Freddie Advisor Committee concluded in order to privatize the GSE they would also need to do the same wit...

Expect Short Sales and Deeds in Lieu Under HAFA to Drive Prices Down

Posted on Friday, April 09, 2010

Short sales made up 8% of all sales in January, up from 7% in December and 5% a year ago. Once banks are geared up to process HAFA short sale requested, the numbers will increase significantly. That means home prices will go down. In January, the average non-distressed sale price was $247,700,...

Home Prices Are Now Reaportedly Down 3.9% compared to the same quarter last year...

Posted on Thursday, April 08, 2010

The continued oversupply of homes on the market still weighs on house prices. Some of this price decline may also be seasonal. But some of it is also due to advance purchases by people for the tax credit. Stronger sales and reduced inventory over the second half of the year should allow price...

Some Recently Expressed Opinions...

Posted on Thursday, April 08, 2010

Fannie Mae recently released its survey of homeowners. Some of the mroe interesting opinions expressed; More than 1/2 of the homeowners surveyed said they are making personal sacrifices to own their home 24% saying they are “sacrificing a great deal.” 88%, including 70% who are delinquent...

Short Sales

Posted on Wednesday, April 07, 2010

Nearly one in four mortgages are underwater, according to First American Core Logic. In February 2010, short sales accounted for 17% of all residential real estate sales....

Freddie Mac Multi Family Financing - more targeted ideas

Posted on Tuesday, April 06, 2010

McLean, VA – Freddie Mac (NYSE:FRE) announces mezzanine financing arrangement where it will allow mezzanine debt on qualifying senior multifamily mortgages (first mortgages) it purchases. Freddie Mac is partnering with experienced multifamily players to help bridge the capital gap for borrowers who ...

Proposed Mortgage Servicing Conflict of Interest Elimination Act

Posted on Tuesday, April 06, 2010

A good idea, but expect idiocyncratic challanges. 2/3 of distressed mortgages are serviced by Bank of America, Wells Fargo, Chase, and Citibank, who also happen to own almost $500 million in second mortgages, creating a potential conflict in their ability to do what's best for the investors of the ...

Freddie Mac Initiative to Help Florida Condos - Targeted Ideas Like This Are Good

Posted on Tuesday, April 06, 2010

INTRODUCTION The Florida Condominium market has been among the hardest hit by the current housing crisis. To increase the availability of financing for Condominium Units in Florida, we are announcing the Florida Condominium Effort in this Single-Family Seller/Servicer Guide (“Guide”) Bulletin. We ...

Conerns for 2010

Posted on Tuesday, April 06, 2010

Even Elizabeth Warren, head of the Congressional Oversight Panel overseeing TARP, is worried that about half of all commercial real estate mortgages will be underwater, and most are concentrated in regional banks. 2,988 banks are at risk over the next three years. Comptroller of the Currency ...

Exisitng Home Sales and Other Important Indicators

Posted on Tuesday, April 06, 2010

Maybe you’re wondering if other people’s misfortune is an opportunity for you to get ahead? Together American homeowners have lost over $13 trillion dollars in personal wealth. More than 11.3 million, or 24% of all residential properties with mortgages were underwater (meaning the owners of...

MHA NPV Updated

Posted on Tuesday, April 06, 2010

April 1, 2010 NPA updated based on new 110 local housing market data, REO and home price history, foreclosure and REO costs and time lines. ...

HAMP Enhancements

Posted on Tuesday, April 06, 2010

March 25. 2010 HAMP Enhancements. Also FHA HAMP announcements (and Bank of America new principal write down program on 45k countrywide loans). 3 to 6 month help for unemployed. 2 year plan to help with negative equity (11 million u/w. 7 million behind on loans). Raised relocation ...

Recent FHFA HAMP and HARP Report Card

Posted on Tuesday, April 06, 2010

March 24, 2010 FHFA HAMP report (for November to January) indicated HAMP and HARP increasing for GSES but still only 540k HAMP trial modifications and 73K permanent as of January 31, 2010. 12.7% of all refinance are HARP. ...

MHA HARP Refinances

Posted on Tuesday, April 06, 2010

March 1, 2010 HARP has been extended to June 30, 2011. ...

HAFA April 5, 2010

Posted on Tuesday, April 06, 2010

The Philosophy behind HAFA (Home Affordable Foreclosure Alternative under Making Home Affordable) is to provide financial incentives for borrowers, servicers and investors to do short sale/deed in lieu over foreclosure with the goal of saving time and money, preserving property condition and value, ...

MHA 2MP...right from the horse's mouth

Posted on Thursday, April 01, 2010

2nd Lien Modification Program (2MP) Many homeowners may be struggling to make their monthly mortgage payments because they have a second lien. Even when a first mortgage payment is affordable, the addition of a second lien can sometimes increase monthly payments beyond affordable levels. Second l...

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