American consumers are now defaulting on their mortgages in even greater numbers than they are walking away from credit card debt. According to FICO's® Score Trends Service, this is a phenomenon that is historically unique. FICO said the mortgage default risk for consumers with high FICO scores now exceeds their credit card default risk, even though most credit cards are unsecured credit and mortgages are secured by real estate. There is a parallel rise in mortgage delinquencies for these high scoring consumers. The company said that their analysis of trends in FICO scoring shows that recent repayment behavior has shifted significantly from what has historically been expected. In 2005 bankcard accounts were more than 3 times more likely to become seriously delinquent, that is 90+ days...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 5, 2010. The survey covers over 50 percent of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. A rising trend of mortgage applications indicates an increase in home buying interest, a positive for the housing industry and economy as a whole. Furthermore, in a low mortgage rate environment, such a trend implies consumers are seeking out lower monthly payments which can result in increased disposable income and therefore more money to spend on discretionary items or to pay down other debt. From the release: The Market Composite Index, a measure of...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Investors this morning await the first real data to be released this week. But wholesale trade inventories isn’t a major market mover, nor is the afternoon’s budget statement, so it could be a quiet day if investors prefer to postpone trading until retail sales figures hit the headlines on Friday. One hour before the opening bell, the market is pretty flat. Dow futures are down 1 point at 10,563 and futures on the S&P 500 are up 0.00 points to 1,140.50 Meantime, WTI crude oil is up 31 cents to $81.80 per barrel, and Spot Gold is trading $5.15 higher at $1,127.00. Earlier today the Mortgage Bankers Association said its index of mortgage application rose 0.5% in the first week of March, but it remains down 12.5% from last year. Key Events Today: 10:00 ― Wholesale Trade Inventories...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Commercial and multifamily mortgages continue to have the lowest rates of charge-offs of any loan types at banks and thrifts and perform better than the overall loan portfolios at those institutions according to the Mortgage Bankers Association (MBA). In response to what it referred to as a great deal of discussion and conjecture about those loans in recent months, MBA updated an earlier " DataNote " analysis of commercial and multifamily mortgage data from the 4th quarter of 2008 with data from the same period in 2009. The report states that 56 percent of the assets held by banks and thrifts at the end of 2009 consisted of loans and leases, a category that includes 1-4 family mortgages, home equity loans, credit cards and other consumer loans, commercial mortgages, multifamily mortgages...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The Department of Housing and Urban Development (HUD) has released the results of the first stage of its increased oversight and enforcement of job creation requirements under Section 3 of the Housing and Urban Development Act of 1968. In a press release on Monday HUD said that more than 3,100 state and local government agencies that receive HUD funds have responded to its campaign to expand hiring and contracting opportunities for low-income persons and three out of four of HUD-funded state and local agencies had submitted their annual reports. HUD said that this was the largest response since HUD made such reporting mandatory. Under Section 3, state and local governments that receive funding from HUD in excess of $200,000 for activities involving housing construction, demolition, rehabilitation...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Equity futures are firmly lower this morning following a mixed session yesterday. The Dow looks to open 31 points lower at 10,507 while futures on the S&P 500 are off 4.25 points to 1,132.75. “The mood in global markets is towards risk aversion with no apparent trigger,” said Benjamin Reitzes from BMO. MND's Adam Quinones says weakness in stocks and the flight to quality into Treasuries is a factor of overnight news from Fitch Ratings that warned against a downgrade of the credit ratings of the United Kingdom, France, and Spain. Confirming that risk isn’t on the table this morning, WTI crude oil is down $1.25 to $80.62 per barrel, and Spot Gold is trading $6.32 lower at $1,117.23. As one would expect, the US dollar is stronger against a broad array of currencies. The...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Jobs in Washington D.C. are growing quickly, and in 2008 the city produced more in goods and services than almost anywhere in the country.
Washington DC - Weather - Recession - United States - Washington
The Mortgage Bankers Association (MBA), American Bankers Association (ABA), and the American Financial Services Association (AFSA) joined with 11 state and local mortgage lending groups on Friday to send a letter to the U.S. Department of Housing and Urban Development expressing concerns about the way in which HUD is proposing to implement the 2008 SAFE Act. The SAFE Act (Secure and Fair Enforcement for Mortgage Licensing), was passed in July 2008 as part of the Housing and Economic Recovery Act. It directs states to adopt licensing and registration requirements for loan originators that meet minimum standards established by the act in lieu of HUD establishing nationwide standards. It also encourages the Conference of State Bank Supervisors (CSBS) and the American Association of Residential...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Mortgage rates reversed course yet again during the week ended March 4 with the 30-year fixed-rate mortgage (FRM) once more falling below 5 percent. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year FRM averaged 4.97 percent with an average of 0.7 point compared to an average rate of 5.05 percent with 0.7 point the previous week. The 15-year FRM averaged 4.33 percent, down from 4.40 percent the week before. Fees and points remain unchanged at 0.7 point. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) had an average rate of 4.11 percent, down from 4.16 percent during the week ended February 25. Fees and points also declined from 0.6 point to 0.5 point. The one-year Treasury-indexed ARM was the lone exception to the downward trend. The average rate for...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Equity futures are moderately higher ahead of a fairly light week of economic data. Dow futures are trading 18 points higher at 10,563 and S&P 500 futures are up a 2 points to 1,138. Commodities are also edging slightly higher with WTI crude oil up 33 cents to $81.83 per barrel and Spot Gold up 54 cents to $1,135.19. Meantime, the US dollar is a bit lower against the euro since France’s Nicolas Sarkozy said the continent would help Greece: “if it were necessary, the states of the euro zone would fulfill their commitments.” In terms of data the week ahead doesn’t quite begin until Wednesday afternoon when the Treasury releases its budget statement. On Thursday, weekly jobless claims will be accompanied by the monthly trade balance. Friday’s retail sales index...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Why are the mansions of one of America’s richest women sitting vacant? Click to follow this photo narrative of the reclusive Huguette Clark and her father, William Andrews Clark, the "Paris millionaire senator." Where is Huguette Clark? And what will become of her fortune?
United States - Wealth - Narrative - Government - Politics
Via email, I recieved the following guidance from the FHA this morning: Subject: Guidance for Currently FHA-Approved Loan Correspondents Regarding Renewal of FHA Lender Approval for 2010 As proposed in a November 30, 2009 via 74 FR 62521 , HUD is seeking to eliminate FHA approval for loan correspondents. Because this rulemaking is still in process and a final rule has not yet been issued, FHA is extending the deadline for the submission of audited financial statements for loan correspondents seeking renewal of their FHA lender approval for 2010. For loan correspondents with a fiscal year end of December 31, and that would ordinarily be required to renew their FHA approval by March 31, 2010, HUD is providing these lenders with an additional 30 days in which to submit their audited financial...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Equity futures are firmly higher this morning ahead of February employment numbers. Payrolls are expected to continue declining but investors are reacting positively to news that the Bank of Japan could initiate measures to protect the economy from deflation. Overseas markets have been positive across the board, including a 2.20% gain in Japan, a 1.03% gain in Hong Kong, and gains of around 1% in Europe. “The Nikkei posted its strongest week of the year as the yen weakened amid speculation that the BoJ will undertake further easing,” noted analysts from BMO. “Meantime, a successful 10-year bond sale by Greece (which raised €5 bln), and stronger-than-expected factory data, are giving Europe a lift, though the euro is little changed.” Two hours before the opening...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the week ending March 3, 2010, the Federal Reserve purchased a net total of $10.00 billion agency MBS. This represents a $1 billion decline from the previous reporting period and breaks a three week streak of $11 billion net total purchases. The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers. ( N.Y. Fed MBS FAQs ) Since the inception...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The NAR released Pending Home Sales data this morning. From the release: The Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, fell 7.6 percent to 90.4 from an upwardly revised 97.8 in December , but remains 12.3 percent higher than January 2009 when it was 80.5. A sale is listed as "pending" when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing . Mortgage and real estate professionals know that a signed contract is just the first step in a long process nowadays. The hard part is qualifying and closing! Since activity spiked over the seasonally supportive spring and summer months, before topping out in October, there has been a drastic drop off in sales...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The number of buyers who agreed to purchase a home fell sharply in January, a sign that demand for housing is sinking this winter as stormy weather slammed Eastern states.
Business - Construction and Maintenance - Residential Housing - Real estate - Thomson Reuters
The futures market is pretty quiet this morning as investors await the jobless claims report today and the month’s unemployment report tomorrow. Also on deck today are revisions to the fourth quarter’s productivity and costs report, and the first look of the year at pending home sales. In Europe, Greece hit the market a well-bid sale of 10-year bonds. “The bonds are being offered with a premium yield of a little under 6.5%, while the 10-yr is trading closer to 6% currently,” analysts from BMO said. “The ability to sell debt and accept that a premium must be paid are steps forward for Greece. A large amount of debt will still need to be issued over the next three months, but progress is a positive for Europe and global markets.” Ninety minutes before the opening...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 26, 2010. The survey covers over 50 percent of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. A rising trend of mortgage applications indicates an increase in home buying interest, a positive for the housing industry and economy as a whole. Furthermore, in a low mortgage rate environment, such a trend implies consumers are seeking out lower monthly payments which can result in increased disposable income and therefore more money to spend on discretionary items or to pay down other debt. From the release : The Market Composite Index, a measure...( read more ) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The government is giving homeowners another year to refinance their loans under a little-used program designed to help borrowers whose homes have plummeted in value.
Loan - Refinancing - Government - Mortgage - United States
Construction spending fell for a third straight month, pulled down by a slump in private nonresidential spending and weak public construction, a government report showed.
Public school - Business - Construction and Maintenance - Consulting - Economic
It sounded like a great idea three months ago: Hand homeowners a $6,500 tax credit to find a new place to live, giving a thrust of energy to the housing market's recovery.
Real estate economics - Real estate - Business - Residential - Financial Services
Professional success often requires some degree of sacrifice. Surprisingly, one of those sacrifices might include moving to the outskirts of some big cities.
Forbes - Business - United States - Business and Economy - Business Services
Fannie Mae needs another $15 billion in federal assistance, bringing its total to more than $75 billion. And worse, the mortgage finance company warned its losses will continue this year.
Fannie Mae - Freddie Mac - Business - Thailand - Provinces
Sales of previously occupied homes took a large drop for the second straight month in January. It was another sign the housing market's recovery is faltering.
U.S. Housing Market - Business - Real estate - Residential - Marketing and Advertising
Families in the market for a house are shopping at the right time: Nationally, homes are near the most affordable they've been in 18 years.
Pittsburgh - House - Real estate - Business - Residential
Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.
Business - United States - Marketing and Advertising - Recreation - Picture Ratings
Home prices rose nationally for the seventh straight month in December as the U.S. housing market continues its bumpy road to recovery.
Real estate pricing - Real estate economics - United States - Real estate - Business
The Obama administration is soon expected to unveil additional protections to ensure homeowners are treated fairly and consistently under its mortgage relief program.
Presidency of Barack Obama - Mortgage - United States - Business - Financial Services
President Barack Obama used a campaign push for Senate Majority Leader Harry Reid to announce a new fund to support homeowners in five states hit hardest by the housing crisis.
Barack Obama - President of the United States - Economic - United States - Politics
The number of borrowers falling behind on their mortgage payments dropped sharply at the end of last year, a sign the foreclosure crisis is beginning to ebb.
Mortgage - Foreclosure - Loan - Business - Financial Services
