Posted on 10/07/2013 6:37:10 AM PDT by whitedog57
The August LPS Mortgage Monitor was released this morning. It shows good news and bad news.
The good news (if you are Fannie Mae and Freddie Mac). The GSE mortgage share (blue line) has risen since 2011.
mtgmktshare
The bad news? The percentage of mortgages that are “out of the money” for refinancing has topped 50%. Again.
%inmoney
The good news? The mortgage pipeline is shrinking rapidly, particularly in judicial foreclosure states.
forecpipecl
The bad news? Judicial foreclosure states like New York, New Jersey and Hawaii have stubbornly high foreclosure pipeline ratios. For non-judicial foreclosure states, Massachusetts leads the nation.
prrationy
Why are these state so high (and slow) in terms of pipeline ratios? As Jacob Gaffney of Housing Wire reported, in California, defaulted borrowers can challenge RMBS assignment. So, even though a borrower defaults on their promissory note, borrowers can get a “Get out of foreclose” card by challenging the process.
Similar to the robosigning fiasco where people could default on their promissory notes and blame robosigning of foreclosures documents.
get_out_of_jail_free
Ironically, the states with easy foreclosure laws also tend to be those where it is easy for homeowners to walk away from an underwater mortgage without any further obligations to the bank. This is why states like Nevada and Florida are prone to wild speculation in real estate and huge price swings in up and down markets.
When the true costs of Obamacare premiums hit the nation, people will be looking at making their mortgage payments or paying for Obamacare.
Another severe round of defaults, IMO.
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