Today’s News Synopsis:
The FHA is looking at a possible bailout in the next twelve months after reserves decrease below the legal limit. Fannie Mae and Freddie Mac have already received a $100 million bailout, the biggest of the financial crisis. The San Francisco Chronicle reported a pick up in bank loans after a slow month in September.
In The News:
CNN Money – “Fannie, Freddie execs score $100 million payday” (11-15-11)
“Mortgage finance giants Fannie Mae and Freddie Mac received the biggest federal bailout of the financial crisis. And nearly $100 million of those tax dollars went to lucrative pay packages for top executives, filings show.”
Housing Wire – “Hope Now servicers complete 5 million loan modifications since 2007” (11-15-11)
“Hope Now, a voluntary alliance of mortgage servicers, investors, counselors and insurers, said members completed 5 million loan modifications since 2007, supporting the idea that nonprofit and private-sector players can resolve mortgage issues through collaboration.”
DS News – “FHA Reserves Sink Further Below Legal Limit Amid Talk of Bailout” (11-15-11)
“An annual audit of the Federal Housing Administration’s (FHA) books has concluded there is a 50-50 chance the government mortgage insurer will need a bailout from taxpayers within the next 12 months.”
Bloomberg – “AIG Resists Concessions to Banks for Obama Refinancing Plan” (11-15-11)
“American International Group Inc. (AIG) is holding out as rival mortgage insurers accept policy changes that support the U.S. government push to stoke refinancing among borrowers with little or no home equity.”
Realty Times – “U.S. Won’t be Nation of Renters” (11-15-11)
“According to the National Association of Realtors®, (NAR) the U.S. will not become a nation of renters. Currently, over 65 percent of Americans are homeowners, a rate that has held since the 1960’s. It’s no wonder why most Americans seek out a home of their own.”
San Francisco Chronicle – “Bank Loans Pick Up in U.S. as Fisher Sees Growth: Credit Markets” (11-15-11)
“Bank loans to companies in the U.S. are accelerating after slowing in September, underscoring the improved outlook for growth following concern that the global economy was headed for another recession.”
Housing Wire – “Freddie Mac tells mortgage servicers not to use Baum law firm” (11-15-11)
“Freddie Mac told mortgage servicers they may no longer refer New York foreclosure or bankruptcy cases to the Steven J. Baum PC law firm.”
CNN Money – “Retail sales: Consumers still spending” (11-15-11)
“Consumers kept hitting the stores in October, despite economic headwinds and uncertainty that many economists had feared would keep them from spending.”
Wall Street Journal – “Lawmakers Near Deal on Raising FHA Loan Limits” (11-15-11)
“U.S. lawmakers are near a deal to increase the maximum size of mortgage loans that can be insured by the Federal Housing Administration, a crucial source of mortgages for first-time home buyers, congressional aides said Monday.”
Fed Governor Sarah Raskin expected 2.25 million foreclosures to occur in 2010 and 2011. Fiserv believed home prices would drop 7.1% over the in 2011. According to the CAR, 66% of first time home buyers were able to afford an entry-level home in California. Josh Levin of Citigroup predicted housing demand may not catch up to supply until 2014.
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Tags: American International Group, bailout, bruce norris, Commerce Department, Department of justice, fannie mae, FHA, foreclosure starts, freddie mac, Hope Now, House Financial Services Committee, HUD, loan modifications, national association of realtors, Steven J. Baum PC, the norris group