September 3, 2010
- That ominous shadow inventory of distressed homes that's been hanging over the industry was cut back in July, according to Barclays Capital. It marked the fifth straight month that the company has recorded a decline in the shadow supply. Barclays says it shrank 1.2 percent, to 3.92 million homes. At the same time, the firm's assessment of the nation's REO inventory ticked up 0.2 percent to 538,000 properties. The distressed share of home sales rose sharply in July, and Barclays says this...
- The three versions of the homebuyer tax credit are expected to result in revenue losses to the federal government of about $22 billion, according to estimates from the Government Accountability Office (GAO). According to Internal Revenue Service (IRS) filings through July 3, homebuyers so far have claimed $23.5 billion under the housing stimulus provisions. California ranks first among the states, with the most homebuyer tax credit dollars claimed.
- A faction of House Democrats have called on Treasury Secretary Timothy Geithner and Fannie Mae's regulator to suspend the GSE's recently announced policy to sue homeowners who strategically default on their mortgage. The group of lawmakers, led by Rep. John Conyers, Jr. of Michigan, called the policy "opaque, overbroad, and punitive." They decried Fannie for using taxpayer dollars to penalize underwater homeowners, and maintained that the policy runs counter to the national need to stem a...
- After falling for five straight months, the Federal Housing Administration's (FHA) delinquency rate held steady in July at 8.3 percent. At the beginning of 2010, the rate stood at 9.4 percent. HUD also issued guidelines for FHA's new insurance premium structure, which takes effect next month. The annual premium will increase from 0.55 percent to between 0.85 percent and 0.90 percent of the loan amount. At the same time, though, the upfront premium has been reduced by 100 basis points from...
- The Office of the Wayne County Treasurer in Michigan will conduct its first Internet auction of more than 13,000 tax foreclosed properties September 17-23. Bid4Assets.com will perform the online auction. The auctioned properties represent a 44 percent increase over the number of properties seized by the county in 2009, making it the largest auction ever for Wayne County.
- The uptick in bank failures is further deteriorating the nation's liquidity crisis, according to Andy Bogdanoff, chairman of Remington Capital, an international commercial real estate investment banking company. This surge in bank closings may ignite more bankruptcies for commercial real estate owners in need of financing, he warns, particularly since some $1.2 trillion in commercial mortgage debt is scheduled to mature over the next few years and most U.S. banks are unable or unwilling to...
- Just ahead of the Labor Day holiday, the federal government reported a slight, but notable improvement in the labor market. New numbers released Friday show that the economy added 67,000 jobs in the private sector during the month of August. Despite growth by private employers, the national unemployment rate edged up from 9.5 percent in July to 9.6 percent in August, as the government cut 114,000 Census jobs and some 550,000 Americans who had given up on finding work decided there were jobs...
- PHH Mortgage Corporation has named William J. Steinmetz SVP, fulfillment operations. Steinmetz will manage all aspects of loan processing, underwriting operations, and loan closing activities. Prior to joining PHH, Steinmetz held a number of senior-level positions, including managing all retail loan operations as an SVP at Aurora Bank and a 20-year career with JP Morgan Chase.
September 2, 2010
- The nation's largest mortgage company is about to start cracking down on servicers for letting delinquent loans languish too long without action. Fannie Mae has issued a notice alerting servicers that it is monitoring all delinquent loans to ensure foreclosures are handled within an acceptable time frame, and may assess penalties for poor servicer performance. By the tone of Fannie's announcement, the GSE wants these nonperformers off its books as quickly as possible.
- Delinquency rates were mixed in the second quarter for commercial and multifamily mortgage investor groups, according to the Mortgage Bankers Association (MBA). The delinquency rate for loans held in commercial mortgage-backed securities (CMBS) is the highest it's been since MBA began tracking the sector in 1997. Delinquency rates for other groups, on the other hand - such as Fannie Mae and Freddie Mac - remain below levels seen in the early 1990s, some by large margins.