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Keyword: mortgages

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  • Exclusive: Too big-to-fail pension insurer agrees to liquidation trust in ResCap NY bankruptcy

    05/23/2014 4:18:34 AM PDT · by Opinionatedtoday · 5 replies
    marinkapeschmann.com ^ | Marinka Peschmann
    Is a taxpayer bail-out inevitable? If you think it is only your mortgages and homes which are at stake in the largest bankruptcy in history being heard in the Southern District of New York’s Bankruptcy Court before Judge Martin Glenn, think again. Embedded within the claims/creditor section in the simultaneous Chapter 11 bankruptcy filings of 51 residential mortgage companies is Pension Benefit Guaranty Corporation (PBGC). Established in 1974, PBGC is a federal chartered agency that insures more than 26,000 private-sector pension plans. The agency protects the retirement incomes of over 44 million Americans. As of 2012, PBGC is running a...
  • U.S. Backs Off Tight Mortgage Rules

    05/14/2014 6:02:50 AM PDT · by mac_truck · 42 replies
    WSJOnline ^ | 5/13/2014 | Nick Timiraos and
    WASHINGTON—The Obama administration and federal regulators are reversing course on some of the biggest postcrisis efforts to tighten mortgage-lending standards amid concern they could snuff out the fledgling housing rebound and dent the economic recovery. On Tuesday, Mel Watt, the newly installed overseer of Fannie Mae and Freddie Mac, said the mortgage giants should direct their focus toward making more credit available to homeowners, a U-turn from previous directives to pull back from the mortgage market. In coming weeks, six agencies, including Mr. Watt's, are expected to finalize new rules for mortgages that are packaged into securities by private investors....
  • U of M study sees signs of mortgage redlining in Twin Cities

    04/11/2014 7:19:24 AM PDT · by TurboZamboni · 24 replies
    MPLS Star & SIckle ^ | 4-9-14 | JENNIFER BJORHUS
    Minority residents in the Twin Cities are much more likely than white people of similar incomes to be rejected for a mortgage, whether they’re buying a home or refinancing. If the home sits in a diverse or mainly nonwhite neighborhood, the application is also more likely to get the boot. Those are the findings of a new study from the University of Minnesota Law School suggesting that mortgage redlining remains alive and well in the Twin Cities. The report suggests that while banks may have justifiably tightened up credit standards, they have swung so far that they are cutting off...
  • This Legislation Would Let Government Take Over U.S. Mortgage Market

    04/08/2014 12:26:39 PM PDT · by lowbridge · 13 replies
    heritage ^ | april 8, 2014 | nobert Michel
    Even worse, the U.S. Senate is poised give us Fannie–Freddie 2.0 in the new housing reform bill that Senators Tim Johnson (D., S.D.) and Mike Crapo (R., Idaho) have released. The Johnson-Crapo bill would wind down the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, but would also replace them with a new government agency that expands the federal government’s grip on the housing market. If the Johnson-Crapo housing bill is adopted, the federal government will have effectively taken over the U.S. mortgage market.
  • Wells Fargo cuts 700 mortgage jobs

    02/27/2014 5:50:54 AM PST · by 2ndDivisionVet · 16 replies
    The Minneapolis/St Paul Star Tribune ^ | February 27, 2014 | Jennifer Bjorhus
    Wells Fargo cuts 700 employees, including 203 in the Twin Cities, as demand for mortgages declines.Wells Fargo & Co. said Wednesday that it is cutting 700 employees, including 203 in the Twin Cities, as demand for mortgages continues to shrink. The San Francisco-based bank said it notified affected employees Wednesday, and that almost all of them work at the Wells Fargo Home Mortgage campus in south Minneapolis. Some work elsewhere in the Twin Cities. The cuts follow scattered layoffs in the Twin Cities in January in which Wells Fargo laid off fewer than 30 mortgage-related workers. “We currently expect mortgage...
  • JP Morgan To Lay Off 17,000 Mortgage Bankers In 2013 And 2014, Because The "Housing Recovery"

    02/25/2014 8:53:01 AM PST · by SeekAndFind · 20 replies
    Zero Hedge ^ | 02/25/2014 | Tyler Durden
    The last time JPMorgan had an investor day, Jamie Dimon explained to Mike Mayo why he is richer than him (and pretty much anyone else). This year, Jamie will be more focused on explaining to 8,000 JPM workers why after firing 16,500 people in consumer and mortgage banking, the bank will now let go another 2K and 6K in those same two groups (which will bring total mortgage and consumer banking headcount reductions between 2013 and 2014 to at least 17K and 7.5K, respectively). This may be tricky especially in the context of, you know, the housing and economic...
  • LETTER: Ralph Nader questions Obama administration’s ‘legal authority’ to shut out Fannie and

    02/23/2014 8:52:41 AM PST · by ColdOne · 26 replies
    dailycaller.com ^ | 2/22/14 | Patrick Howley
    full title...LETTER: Ralph Nader questions Obama administration’s ‘legal authority’ to shut out Fannie and Freddie shareholders from future profits....Political activist and former presidential candidate Ralph Nader is questioning the “legal authority” of the Obama administration’s secret decision to prevent Fannie Mae and Freddie Mac shareholders from obtaining any future earnings in the government sponsored enterprises (GSE). Nader slammed the administration’s actions in a letter he sent to Treasury Secretary Jack Lew, which was obtained by The Daily Caller. The administration’s decision to shut out shareholders means that the mortgage-lending giants Fannie Mae and Freddie Mac, which received a $189.5...
  • African-Americans squeezed out of the housing market

    01/27/2014 10:48:32 AM PST · by rightwingintelligentsia · 69 replies
    CNN Money ^ | January 27, 2014 | Les Christie
    More African-Americans are being squeezed out of the housing market. Not only are they less likely to apply for a mortgage than any other ethnic group, but African-Americans are also 2.4 times more likely to get denied a mortgage than Whites, a recent study conducted by Zillow and the National Urban League found.
  • All-Cash Home Sales Hit Record 42% of Sales

    12/22/2013 10:28:58 AM PST · by Kaslin · 57 replies
    Townhall.com ^ | December 22, 2013 | Mike Shedlock
    Even though household formation by millennials is at a record low percentage, home sales are at modest levels thanks to investor all-cash buying. Market-Watch notes All-Cash Home Sales Reach New High. More Americans are buying homes in all-cash deals, according to a new report. But real-estate experts say this increase may not be a good sign for the health of the housing market, which may also be impacted by the Federal Reserve’s decision to pull back on its bond-buying program. All-cash purchases accounted for 42% of all sales of residential property in November 2013, up from 39% during the previous...
  • Sperling Says No Nein To Private Recapitalization Of Fannie And Freddie (Same Day As Reid)

    11/24/2013 2:56:47 PM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 11/24/2013 | Anthony B. Sanders
    As many are painfully aware, the mortgage giants Fannie Mae and Freddie Mac collapsed in price from Q4 2007 to Q4 2008. Fannie Mae stock was trading at $60.81 on September 28, 2007 and fell to $1.71 by September 30, 2008. That is quite a drop. But Fannie Mae’s equity is now at $2.73 while Freddie Mac’s is at $2.52 per share. Both started showing signs of life in March 2013, spiked on May 28th, fell again, but has regained upward momentum since September. Who is in the running to purchase Fannie Mae and Freddie Mac and provide private market...
  • De Blasio ally open to city seizing foreclosed homes from banks (New York City)

    11/15/2013 2:06:55 PM PST · by 2ndDivisionVet · 54 replies
    The New York Post ^ | November 15, 2013 | Yoav Gonen
    The most left-leaning candidate for City Council speaker says she would consider using eminent domain to seize homes that are in foreclosure from banks – a move that could leave taxpayers subsidizing the mortgages. Melissa Mark-Viverito (D-Manhattan/Bronx), a close ally of Mayor-elect Bill de Blasio, said she was open to the proposal when asked about it during a forum in Queens Thursday night featuring five main contenders in the race for speaker. “The idea of using eminent domain in a reverse way… as a way of seizing those properties from the bank as a way of making those homes affordable...
  • Edmond mortgage company Adfitech to lay off 320 employees (Largest employer in town)

    10/20/2013 7:21:57 PM PDT · by 2ndDivisionVet · 13 replies
    The Oklahoman ^ | October 18, 2013 | Paul Monies and Brianna Bailey
    EDMOND — Mortgage services company Adfitech Inc., Edmond's largest private employer, said Friday it would lay off half its workforce in December. The company said it would lay off 320 employees because of “abrupt changes in customer needs.” The layoffs are scheduled to take effect Dec. 20. Adfitech said the layoffs were necessary for the long-term viability of the company, which provides outsourcing services to major lenders, banks and mortgage companies. Adfitech has about 620 employees in Edmond, according to a March report from the Edmond Economic Development Authority. After the planned layoffs, the company will fall behind OU Medical...
  • RMBS: Fannie Risk-Sharing Notes Trade Tighter As Wells Fargo Cuts More Home Loan Jobs

    10/17/2013 9:57:17 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 10/17/2013 | Anthony B. Sanders
    Fannie Mae Risk-sharing Notes are trading tighter, according to analysts at Credit Suisse. Mid-market spreads for Fannie Mae risk-sharing CAS securities tighter than pricing levels on Oct. 15, Credit Suisse analysts say in report today. • M1 at +167bps vs. +200 • M2 at +482bps vs. +525 • Both had priced “significantly tighter than initial guidance” • CS, BofAML were joint leads • Freddie Mac STACR indicative levels at +210, +535, CS says • Priced at +340, +715 in July • NOTE: ~75 investors participated in $675m Fannie deal, ~50 in $500m Freddie deal, meaning typically only small blocks trade,...
  • Shut-down Slams Door on USDA (U.S. Department of Agriculture) Mortgages

    10/14/2013 3:44:16 PM PDT · by Libloather · 40 replies
    Daily Yonder ^ | 10/10/13
    A sign advertising low-interest housing loans at the Crescent Shores Subdivision in Lincoln, Delaware. The government shut-down has halted the processing of these loans, which are aimed at low- and moderate-income buyers. The week-old federal government shutdown is a disaster on many levels. For rural America, one major impact is in the area of housing. For the near future, low- and moderate-income homebuyers who have applied for mortgages guaranteed or made directly by the U.S. Department of Agriculture (USDA) Rural Housing Service are out of luck. So are very low-income homeowners seeking repair grants or loans.
  • PHH slashes mortgage origination department in Jacksonville; 365 jobs lost

    10/09/2013 10:16:00 PM PDT · by 2ndDivisionVet · 1 replies
    The Jacksonville Business Journal ^ | October 3, 2013 | Timothy Gibbons, Managing Editor
    PHH Mortgage is laying off a third of its Jacksonville work force, cutting 365 positions by December. The move, of which employees were notified Thursday, leaves about 700 workers left on the First Coast. Most of those that are being laid off work in the mortgage origination department. They will received 60 days pay in lieu of notice, said Dico Akseraylian, vice president of communications for parent company PHH Corp. The move comes on the heels of Wells Fargo and Chase announcing layoffs in their mortgage department. PHH's reason for the cuts are similar to those of other industry players,...
  • Continued Shutdown Bad News For Mortgage Market (WORSE Than Already??)

    10/04/2013 8:35:52 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/04/2013 | Anthony B. Sanders
    What does the government shutdown mean for the mortgage market? Fannie Mae and Freddie Mac aren’t affected by the shutdown. While the FHA is still processing loans, it’s operating with a vastly reduced staff, which could lead to delays. The FHA is part of the Department of Housing and Urban Development’s Office of Housing, which has just 64 of 2,972 employees reporting to work right now. The biggest issue facing the mortgage market is that the Internal Revenue Service isn’t issuing Form 4506-T, which is what most lenders currently use to verify borrowers’ incomes. For loans ready to close now,...
  • Daunting Gap? Homebuilder Index Biggest Miss To Expectations Since April With Rising Mortgage Rates

    09/17/2013 8:37:14 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 09/17/2013 | Anthony B. Sanders
    The “Goodbye Larry! (Summers)” Treasury yield decline yesterday was short lived. After Summer pulled out as a candidate for Federal Reserve Chairman, the US Treasury 10 year yield fell 11 basis points yesterday morning, but the exuberance quickly went away. ust10091713. Speaking of interest rates, the National Association of Home Builders Market Index was flat for September compared to August, but missed expectations by the most since April. nahbhbindex09171`3 If we compare the NAHB Index with new home sales, we see a daunting gap between builder “optimism” and reality. nahbnhs091713. And if we include the Bankrate 30 year rate, we...
  • Americans Still Suffering 5 Years After Lehman Bros Failure (Not What Obama Said)

    09/16/2013 11:48:50 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 09/16/2013 | Anthony B. Sanders
    President Obama gave a speech touting how far the US has come since the jarring Lehman Brothers collapse five years ago. “The U.S. has come a long way since September 2008,” according to President Obama. Well, not in terms of household income since REAL median household income continues to decline. household-income-monthly-median-growth-since-2000 (1) And the less than 1% of the population continues to suffer. [Note how the top 1% fared under President Clinton!] inomr Mortgage purchase applications have tanked along with the employment-to-population ratio. empopombapurch And the labor force participation rate continues to fall along with M2 Money Velocity. lfpm2v We...
  • Gov’t Karma: Gov’t Spending 24.4% Of GDP, Indicators Fall, 43% of Americans Pay NO Federal Taxes

    09/10/2013 11:30:31 AM PDT · by whitedog57 · 21 replies
    Confounded Interest ^ | 09/10/2013 | Anthony B. Sanders
    John Lennon said it best. Sort of. “Instant Government Karma’s gonna get you Gonna knock you right in the head You better get yourself together Pretty soon your gonna be dead Thanks to the rise of social programs and wars, government spending has exploded up to 24.4% of Real GDP. govtsizewh That is a whopping 1/4 of the total economy! Let’s look at a few empirical oddities. 1. Mortgage purchase applications are falling with the employment to population rate. empopombapurch 2. M2 Money Velocity is falling with labor force participation rate. lfpm2v 3. 43% of Americans pay no Federal taxes....
  • It's Official: Affordable-Housing Zealots Hijack Mortgage Reform

    08/30/2013 5:04:45 PM PDT · by jazusamo · 17 replies
    Investots.com ^ | August 30, 2013 | Editorial
    Housing: Under pressure from civil-rights activists, federal bank regulators have killed tougher mortgage rules requiring minimum down payments and credit scores for loans bundled into securities. Here we go again. The Fed, FDIC, SEC and three other agencies regulating Wall Street have adopted the same weak underwriting standards the Consumer Financial Protection Bureau set earlier this year for loans. The Dodd-Frank Act was supposed to require banks and other issuers of mortgage-backed securities to retain 5% of the credit risk of the bonds on their books to avoid the moral hazard that led to the financial crisis, when lenders quickly...
  • College Tuition And House Prices Climbing Fast (Case-Shiller House Price Index Up 0.89% In June)

    08/27/2013 6:33:42 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 08/27/2013 | Anthony B. Sanders
    The S&P Case-Shiller repeat sales house price index for 20 metro areas rose 0.89% in June, and rose 12.07% YoY. Now THAT is a big increase in house prices! cshp082713 House prices are back to October 2008 levels. cschart082713 But Case-Shiller was no surprise if you follow CoreLogic’s Loan Performance HPI that came out earlier. Atlanta was the leader on major metro areas in June. csloanhp082713 And Washington DC is the worst performing major metro (but still up 1% in June). csmetro082713 csmetro2082713 House prices continue to rise despite flat-lined mortgage purchase applications. cs20mbap082713 Inflation in college tuition is rivaling...
  • Calif. city looks to seize loans to ease mortgages (Richmond)

    08/25/2013 9:53:31 AM PDT · by Olog-hai · 29 replies
    Associated Press ^ | Aug 25, 2013 9:39 AM EDT | Paul Elias
    When the mayor of Richmond, Calif., and a gaggle of activists and homeowners showed up at the Wells Fargo Bank headquarters in downtown San Francisco this month, they were on a mission to speak with the bank’s chief executive. They wanted the bank to drop a lawsuit aimed at stopping Richmond’s first-in-the-nation plan to use the government’s constitutional power of eminent domain to “seize” hundreds of mortgages from Wells Fargo and other financial institutions. … Wells Fargo, three other banks and even the Federal Housing Finance Agency think otherwise. The banks have filed two lawsuits alleging that the plan is...
  • Bank of Japan and Bank of England Claim They Can Counter Fed Tapering (Kuroda-Bean at Jackson Hole)

    08/25/2013 9:30:51 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 08/25/2013 | Anthony B. Sanders
    There are more rumblings from the Jackson Hole central banker party going on in Wyoming. Central bankers from Japan and the U.K. predicted their new campaigns to encourage expansion will work, sustaining support for global growth even as the Federal Reserve considers a reduction in stimulus. As the annual gathering of central bankers and economists in Jackson Hole, Wyoming, drew to a close yesterday, Bank of Japan Governor Haruhiko Kuroda said his souped-up asset-buying “has started to exert effects” on the world’s third-largest economy. Bank of England Deputy Governor Charlie Bean said the U.K.’s pledge this month to avoid raising...
  • Fed Minutes: There Will Be Blood (Global Sovereign Yields Rise On Fed’s Hawkish Message)

    08/21/2013 11:32:28 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 08/21/2013 | Anthony B. Sanders
    Here are the minutes of the most recent FOMC meeting. Federal Reserve officials were “broadly comfortable” with Chairman Ben S. Bernanke’s plan to start reducing bond buying later this year if the economy improves, with a few saying tapering might be needed soon, minutes of their last meeting show. In other words, it was a hawkish set of minutes pointing to tapering. The reaction in the US Treasury 10 year yield? ust10082113 And agency MBS prices fell about 12 basis points. mbs082113 And the globe is awash in blood (as in rising sovereign yields). wbm082113 Here is a photo of...
  • Got Cash? Mortgage Purchase Applications Rise 1.2%, Existing Home Sales Rise 6.5%

    08/21/2013 7:52:14 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 08/21/2013 | Anthony B. Sanders
    According to the Mortgage Bankers Association (MBA), mortgage applications declined 4.56 from the previous week. mbastata082113 Most of the decline in mortgage applications was refinancing applications. They fell 7.72% from the previous and have fallen since May 1st when Treasury and mortgage rates began to rise. mbarefirates Mortgage purchase applications rose 1.2% from the previous week. And purchase applications have fallen since May 1st despite today’s report. mbapurchasefreddierate Existing home sales rose faster than expected at a rate of 6.5% versus the expectation of 1.4%. ehs082113 Of course, 60% of home sales are all cash and many are foreign and...
  • [California] Pricey homes in Richmond's eminent domain plan

    08/20/2013 3:40:35 PM PDT · by Lonely Bull · 3 replies
    sfgate.com, San Francisco Chronicle ^ | Tuesday, August 20, 2013 | Carolyn Said
    Richmond's controversial plan to seize underwater mortgages through eminent domain includes loans for at least two homes purchased for over $1 million as well as other high-end properties - a revelation that appears to undermine the city's argument that the plan would combat blight. The city is pursuing mortgages with balances ranging from $98,000 to $1.12 million, according to data collected by Marc Joffe, an analyst who received the property addresses, loan balances, offer amounts and other information through a California public records request and shared them with The Chronicle. --SNIP-- Eminent domain is the seizure of private property for...
  • Holder and FBI admit lying about data released before election last year

    08/15/2013 7:44:21 AM PDT · by EXCH54FE · 17 replies
    American Thinker ^ | Aug 15, 2013 | Thomas Lifson
    In their efforts to promote the re-election of Barack Obama, our nation's premier law enforcement agencies presented false data to the American public about a "crackdown" on mortgage fraud. Fox News reports: The Justice Department and FBI have quietly acknowledged they grossly overstated the scope of a mortgage fraud crackdown, which the administration heralded with much fanfare a few weeks before last year's presidential election. According to a memo circulated by the FBI and a correction posted online by the Justice Department, the number of defendants, the number of victims and the size of the losses are, in reality, a...
  • Elite Housing Recovery: Million Dollar Home Sales Jump As Middle Class Sucks Wind

    08/09/2013 1:36:15 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 08/09/2013 | Anthony B. Sanders
    Home sales from Los Angeles to Charleston, South Carolina that are priced at more than $1 million are gaining at triple the pace of the broader market, according to real estate research firm DataQuick Inc. According to Susan Wachter, a professor of real estate and finance at the University of Pennsylvania’s Wharton School and an architect of Clinton’s housing policy (The National Homeownership Strategy: Partners in the American Dream), wealthy purchasers, helped by gains in equities, are diving into real estate a year after a recovery began in the housing market when less-well-heeled buyers rushed to take advantage of record-low...
  • Flashback: When Palin said Fannie/Freddie were too expensive to taxpayers in ’08, it was a “gaffe”

    08/06/2013 11:14:17 PM PDT · by 2ndDivisionVet · 10 replies
    Hot Air ^ | August 6, 2013 | Mary Katharine Ham
    First off, I welcome President Barack Obama’s call to shutter mortgage giants (and giant pains in the public arse) Fannie Mae and Freddie Mac. Many conservatives and libertarians have been beating that drum since 2008 and before, back when Obama was voting present on regulation of Fannie/Freddie and taking more in donations from them than all but one lawmaker. Now, it seems, we can work together on this project, as Obama pushed a Senate plan to close Fannie and Freddie during an economic address in Arizona: But as home prices rise, we can’t just re-inflate a housing bubble. That’s the...
  • Obama to urge Congress in speech to shutter Fannie Mae and Freddie Mac

    08/06/2013 11:53:45 AM PDT · by ColdOne · 43 replies
    foxnews.com ^ | 8/6/13 | ap/foxnews
    President Obama will urge Congress to shutter Fannie Mae and Freddie Mac, the mortgage-giants bailed out by the government in 2008, as part of a strategy to buffer taxpayers from future housing market downturns. In a speech Tuesday in Phoenix, Obama will call for transitioning the business model of Fannie and Freddie into a system where "private capital must be wiped out before the government pays on any form of catastrophic guarantee," a senior administration official said. Obama will also renew his calls for sweeping mortgage refinancing legislation when he travels to Phoenix Tuesday. Arizona's desert capital was the epicenter...
  • Obama to insist market provides 30-year mortgages

    08/05/2013 6:35:45 PM PDT · by Nachum · 30 replies
    Washington Post ^ | 8/5/13 | Zachary A. Goldfarb
    President Obama on Tuesday will for the first time insist that any future housing system in the United States makes 30-year mortgages widely available to borrowers, senior administration officials said, preserving a linchpin of the American economy but also continuing to expose taxpayers to risk from another housing meltdown. (Snip) That will require, officials said, some form of government guarantee that means lenders will be reimbursed by taxpayers in the event of a housing catastrophe like the one that occurred several years ago. Traveling to Phoenix on Tuesday, Obama is planning to call for a new
  • Surprise, Surprise, Surprise! Fed Leaves Funds Target Unchanged (Waiting For Godot)

    07/31/2013 11:34:19 AM PDT · by whitedog57 · 6 replies
    Confounded Interest ^ | 07/31/2013 | Anthony B. Sanders
    Here is the written statement from the Federal Reserve Board of Governors. Surprise, surprise, surprise! The Fed Funds Target remains unchanged. fedfundstarget The Taylor Rule, believe it or not, called for a LOWERING of the Fed Funds Target. tayloru;e073113 The Federal Reserve said it will maintain its $85 billion in monthly bond purchases and persistently low inflation could hamper the expansion. fedbal073113 The 10 year Treasury rate rose this morning, then fell on The Fed’s announcement. ust10073113 The Dow Jones Industrial Average had a similar reaction. dow073113 The announcement said that The Fed will remain accommodative until the labor market...
  • Mortgage Applications Drop 3.7% As Homeownership Rate Falls To 18 Year Lows

    07/31/2013 6:25:16 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 07/31/2013 | Anthony B. Sanders
    According to the weekly Mortgage Bankers Association (MBA) mortgage application survey released this morning, mortgage applications drop 3.7% from the previous week. mbastats073113 Mortgage purchase applications fell 3.43% from the previous week. And since May 1st, purchase applications have fallen with rising mortgage rates (the Mortgage Bankers 30 year effective rate). mbapurchmayday073113 The longer term view of purchase applications (and the MBA mortgage rate index) reveals the zone of slow/no growth in purchase applications since June 2010. mbapltrtes And if I overlay the national homeownership rate on the MBA mortgage purchase application index, we can the relationship, until 2010. Since...
  • Obama's HAMP Program a Stunning Success

    07/25/2013 7:51:27 AM PDT · by Kaslin · 8 replies
    Townhall.com ^ | July 25, 2013 | Mike Shedlock
    Obama had lofty goals of helping 4 million Americans keep their homes with his Home Affordable Mortgage Program (HAMP). Here are some quick facts:   HAMP modified 1.2 million mortgages (70% less than the target) 306,000 re-defaults Another 88,000 at risk The re-default rate is an alarming 30% The re-default rate of those in since 2009 is 46% CNNMoney has additional details in Watchdog: Borrowers in Obama housing program re-defaulting.   Borrowers who received help through the government's main foreclosure prevention program are re-defaulting on their mortgages at alarming rates, a federal watchdog said in a report released Wednesday.  Nearly 1.2 million...
  • Spain’s New Squatters

    07/28/2013 2:20:43 PM PDT · by 2ndDivisionVet · 30 replies
    MALAGA, Spain, Jul 28 (IPS) - "You live there for free, don't you?" asked a woman as she passed by the Buenaventura "corrala", a community in a building in this southern Spanish city occupied since February by families evicted from their homes for falling behind in their mortgage payments due to unemployment. "We don't want any handouts. We want to pay, through a social rent scheme," replied 42-year-old Yuli Fajardo, who was living in a tent before she found shelter along with some 40 other people in one of the 13 spacious apartments in this four-storey block of flats in...
  • Regulators Push Relaxation of Risk Retention for 30 Year Fixed-rate Mortgage (and Others)

    07/26/2013 8:32:44 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 07/26/2013 | Anthony B. Sanders
    The Dodd-Frank banking bill is slowly unraveling. “Concerned that tougher mortgage rules could hamper the housing recovery, regulators are preparing to relax a key plank of the rules proposed after the financial crisis (Dodd-Frank). The watchdogs, which include the Federal Reserve and Federal Deposit Insurance Corp., want to loosen a proposed requirement that banks retain a portion of the mortgage securities they sell to investors, according to people familiar with the situation.“ Dodd-Frank required that issuers should retain 5% of all mortgage-backed securities issued without government backing. So, regultors are considering lowering the skin in the game requirement). Congress directed...
  • Mortgage Purchase Applications Drop 2.07%, Average Mortgage Size Drops

    07/24/2013 7:18:50 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 07/24/2013 | Anthony B. Sanders
    I am speaking at the Cleveland Fed on September 19th concerning “The New Housing Finance System: Are We There Yet?” But with the mortgage market shrinking, I may not have to speak at the conference. mbastats072413 According to the Mortgage Bankers Association weekly survey, mortgage purchase applications fell 2.07% from the preceding week. mbapurchase072413 Mortgage rates (using Bankrate’s 30 year fixed-rate index) have been generally rising since May 1st (pink box), but falling since July 5th (red box). But even with falling mortgage rates, mortgage purchase applications fell last week and have been generally falling since July 5th. mbapurchmayday1 The...
  • No Mystery: Bank of America Loses $4.22 Billion From Agency MBS Rout (Rates Likely To Stay Low)

    07/17/2013 11:49:38 AM PDT · by whitedog57
    Confounded Interest ^ | 07/11/2013 | Anthony B. Sanders
    Bank of America Corp.’s shareholder equity declined in the second quarter as the company’s bond portfolio sustained the biggest hit from rising interest rates among top lenders. The second-biggest U.S. bank by assets reported a $4.22 billion drop in a measure of equity that includes changes in bond holdings, currency translations and pension adjustments. The bulk was from unrealized losses in the securities portfolio, including a $5.73 billion decline in the value of government-backed mortgage securities. It is no mystery as to why BofA lost money. Between April 1st and June 30th, agency MBS took a beating (particularly after May...
  • Perfect Storm? Bernanke, Housing Starts and Mortgage Purchase Applications

    07/17/2013 7:36:51 AM PDT · by whitedog57
    Confounded Interest ^ | 07/17/2013 | Anthony B. Sanders
    U.S. housing starts unexpectedly fell in June to the lowest level in almost a year. hs071713 Mortgage applications dropped 2.61% from the preceding week. However, mortgage PURCHASE applications actually rose slightly 0.5%. mbapurchase071713 And as you can see, the Bankrate 30 year fixed-rate average mortgage rate fell last week. Over the long term, we are still stuck at purchase application levels from the mid 1990s. mbaprchlt071713 Of course, median household income in real terms has been falling which doesn’t bode well for the size of the pool of good quality borrowers. household-income-real1-13a Mortgage refinancing fell 4.19% from the preceding week...
  • Treasury 10 Yr Auction Results (10 Year Rises) And FOMC Minutes

    07/10/2013 11:16:27 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 07/10/2013 | Anthony B. Sanders
    Fed Chairman Ben S. Bernanke will have a Q&A following the release on the Fed’s FOMC minutes today at 2pm EST. Here are the minutes. Quick summary of the last FOMC meeting: half the voting members want to stop asset purchases later this year. The other half, wait for improving economic conditions. The reaction in the 10 year Treasury yield? t10reaction But prior to his Q&A session, the 10 year Treasury auction went off as expected. trreas10yraux The 10 Year High Yield continues to climb. ust10ihg The 30 year auction is tomorrow. Stay tuned!
  • Ace of Cups: Bank Profits, Treasury and Mortgage Rates, Pending Home Sales

    07/07/2013 10:38:13 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 07/07/2013 | Anthony B. Sanders
    Rising Treasury and mortgage rates have been in the news quite a bit recently. Banks have suffered capital losses with the recent rises in rates. According to the Federal Reserve, unrealized gains in bank portfolios plummeted from more than $40 billion at the beginning of the year to about $6 billion, with the most precipitous declines over the past few weeks amid mounting market concern about the “tapering” of the central bank’s bond-buying program. The bright spot in the economy? Rising pending home sales! Pending home sales have been rising quite a bit in recent months. But at the same...
  • Sovereign Yield Jumps on Today’s Part-time Jobs Report (US 10 Year Treasury Up 20 Basis Points)

    07/05/2013 10:37:00 AM PDT · by whitedog57
    Confounded Interest ^ | 07/05/2013 | Anthony B. Sanders
    Investors apparently liked today’s jobs report of +195,000 non-farm employment, despite full-time jobs falling by -240,000. wbm070513 And the US Treasury 10 year yield rose about 20 basis points. ust10070513 The Fannie Mae 4% MBS took a dive with the rise in Treasury yields. fn4pr And the duration of the Fannie Mae 4% MBS continues to climb. fn4dur All this does not bode well for mortgage rates. Let’s see how the Freddie Mac US Mortgage Market Survey 30 Year Homeowner Commitment rate does this week. fredconf The US dollar spot rate is up. usdollr070513 Commodities? Gold and silver way down,...
  • Rising Sovereign Yields and Mortgage Rates – US and Japan

    06/30/2013 6:28:40 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 06/30/2013 | Anthony B. Sanders
    Since May 1st, both US Treasury yields and Japanese sovereign yields have risen, but mostly the US Treasury yields. usjapyc063013 And with the rise in sovereign yields, mortgage rates in both the US and Japan have risen. japausmortgagerates Both US and Japanese house prices were deflating since 2008, but Japan (in red) continues to deflate while the US house prices (in blue) are showing a sudden increase … again. usjaphouse In Japan, mortgages secured by housing has been declining since 1992, but started to stabilize in 2007 when US mortgage volume started to fall. mortgvoljapanuse So, how will rising mortgage...
  • They're Back! Housing Now Less Affordable and Stated-income, Verified Asset Loans Reappear

    06/20/2013 1:09:26 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 06/20/2013 | Anthony B. Sanders
    There are two factors that determine mortgage affordability. One is house price levels and the other is mortgage interest rates. Both are rising rapidly translating into lower housing affordability. First, here is a chart of housing prices since February 2012. Whether its the FHFA Purchase Only Index, the Case-Shiller 20, the Loan Performance HP or the NAR’s median home price index for existing home sales, they are all rising. Second, Treasury and mortgage rates have risen around 63 basis points since May 2nd. And Fannie Mae’s current coupon rate has risen from 2.296% on May 2nd to 3.270% as on...
  • The Mortgage Refinancing Boom Is Evaporating Before Our Eyes

    06/14/2013 12:44:58 PM PDT · by blam · 2 replies
    Business Insider ^ | 6-14-2013 | Mamta Badkar and Matthew Boesler
    The Mortgage Refinancing Boom Is Evaporating Before Our Eyes Mamta Badkar and Matthew Boesler June 14, 2013, 1:29 PM Mortgage rates have been climbing for five straight weeks, and the latest data from the Mortgage Banker's Association shows that the average 30-year fixed rate is now at 4.15%, up from 3.59% in the first week of May. Meanwhile, the MBA's refinancings index is down 36% from its peak at the beginning of May. The rise in mortgage rates has been driven by concerns about when the Federal Reserve will begin to slow its $85-billion-a-month bond purchase program, which is designed...
  • Fannie And Freddie Are Getting Smoked — Down 40% Today

    05/29/2013 10:01:39 AM PDT · by blam · 11 replies
    Business Insider ^ | 5-29-2013 | Sam Ro
    Fannie And Freddie Are Getting Smoked — Down 40% Today Sam Ro May 29, 2013, 11:48 AM Shares of Fannie Mae and Freddie Mac are getting destroyed today. Stifel Nicolaus' Dave Lutz points us to reports that Senator Bob Corker will push to wind down Fannie and Freddie as part of housing finance reform. Fannie and Freddie are government sponsored enterprises (GSE) that were created to boost liquidity in the mortgage markets buy packaging mortgages and selling them off to investors as bonds (or mortgage-back securities). These MBS also came with implicit guarantees, which got the them into trouble when...
  • Cash And Tarry: Mortgage Applications Plunge At Fastest Rate Since 2009

    05/29/2013 7:14:03 AM PDT · by blam · 8 replies
    Zero Hedge ^ | 5-29-2013 | Tyler Durden
    Cash And Tarry: Mortgage Applications Plunge At Fastest Rate Since 2009 Tyler Durden 05/29/2013 09:47 -0400 In the 'old normal' a spike in interest rates would have sparked an avalanche of 'rational' home-buyers and refinancers to apply for mortgages for 'fear' of the 'never-to-be-seen-again' rates disappearing. It seems, however, courtesy of a Bernanke-trained market, that this surge in rates has pushed many to the sidelines (mortgage applications slipped 8.8% WoW and -23% in the last 3 weeks), we presume waiting for the omnipotent-one to save the day yet again. The year-to-date shift in mortgage applications is now the worst since...
  • Sheila Bair- Barney Frank Editorial On Securitization Misleading (Fannie/Freddie Did The Same Thing)

    05/25/2013 4:20:42 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 05/25/2013 | Anthony B. Sanders
    Sheila Bair, former FDIC Commission, and Barney Frank, former Congressman, penned a misleading op-ed in Fortune/CNN Money entitled “Watch out. The mortgage securities market is at it again“. Here is the misleading sentence: Big, ugly giants with names like Countrywide Financial and New Century packaged huge pools of mortgages, sliced them up into securities, and sold them to investors, who now bore the risk if the loans defaulted. It turns out that “big, ugly giants” with names like Fannie Mae and Freddie Mac did exactly the same thing. They packaged huge pools of mortgages, sliced them up into securities, and...
  • Rolling The Dice: Las Vegas, The Fed and Wall Street

    05/06/2013 5:09:01 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 05/06/2013 | Anthony B. Sanders
    A friend of mine is trying to sell a 5 acre lot in Las Vegas and has been trying since 2009. But recently, he has received 3 offers at above the asking price; he has turned all offers down. Why? He thinks The Fed will continue rolling the dice on easy money policies. Reuters had an interesting piece on the Las Vegas “rebound” entitled “Special Report: Cheap money bankrolls Wall Street’s bet on housing.” According to the Reuters article, The Vegas market has unsteady legs. Statistics compiled by the University of Nevada at Las Vegas show some 40,000 homes are...
  • FHFA Limiting Fannie Mae and Freddie Mac Loan Purchases to “Qualified Mortgages”

    05/06/2013 1:41:13 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 05/06/2013 | Anthony B. Sanders
    The Federal Housing Finance Agency (FHFA) announced today that it is directing Fannie Mae and Freddie Mac to limit their future mortgage acquisitions to loans that meet the requirements for a qualified mortgage, including those that meet the special or temporary qualified mortgage definition, and loans that are exempt from the “ability to repay” requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). In January, the Consumer Financial Protection Bureau (CFPB) issued a final rule implementing the “ability to repay” provisions of Dodd-Frank, including certain protections from liability for loans that meet the criteria of a qualified...