Today’s News Synopsis:
Fannie Mae increased its minimum borrower credit score to 620. According to Lender Processing Services, loans are deteriorating 3 times faster than they are being approved. The average interest rate for 30-year, fixed rate mortgages declined to 4.7%
In The News:
Housing Wire – “Fannie Raises Minimum Credit Score to 620″ (12-3-09)
“As the Federal Housing Administration (FHA) considers raising the minimum credit score requirement for new borrowers to reduce risks to the single-family insurance fund, Fannie Mae (FNM: 0.90 -2.17%) has increased the minimum borrower credit score from 580 to 620.”
Housing Wire – “Bill Ends Financial Bailouts as BofA Plans TARP Exit” (12-3-09)
“The House Financial Services Committee on Wednesday passed HR 3996, which aims to put an end to financial firms considered too big to fail and prevent future taxpayer-funded bailouts by requiring institutions to pay into a ‘dissolution fund.’”
Housing Wire – “Loans Deteriorate 3 to 1 in October: LPS” (12-3-09)
“For every loan approved, three more loans are deteriorating, according to Lender Processing Services’ (LPS: 41.18 -0.79%) November monitor report.”
Housing Wire – “Weekly Mortgage Rates Reach Record Lows: Freddie” (12-3-09)
“The average interest rate for 30-year and 15-year fixed-rate mortgages (FRM) reached a new record low, according to Freddie Mac (FRE: 1.09 0.00%). Freddie Mac’s weekly survey of mortgage rates put the 30-year FRM at 4.71% with an average 0.7 point, down from last week, when the rate of 4.78% tied the previous all-time record low.”
Bloomberg - “General Growth Aim to Keep Top Malls May Thwart Simon” (12-3-09)
“General Growth Properties Inc. plans to emerge from bankruptcy without selling its best-performing shopping malls after reaching agreement with lenders, a strategy that may thwart the acquisition ambitions of competitor Simon Property Group Inc. General Growth rose as much as 11 percent.”
Bloomberg - “Toll Net Loss Widens as Revenue Falls More Than Costs” (12-3-09)
“Toll Brothers Inc., the largest U.S. luxury-home builder, reported a bigger-than-expected loss in the fourth quarter after revenue fell faster than costs. The shares dropped the most since February. The net loss for the three months ended Oct. 31 widened to $111 million, or 68 cents a share, from $79 million, or 49 cents, a year earlier, the Horsham, Pennsylvania-based company said today in a statement. Analysts surveyed by Bloomberg predicted a loss of 44 cents a share, according to the average of 11 estimates.”
Bloomberg - “Silvia Says Many Fired U.S. Workers Will Not Find New Jobs” (12-3-09)
“The job market is still deteriorating and unemployment will probably keep rising even as the U.S. economy recovers, Silvia said, projecting the jobless rate will peak at 10.6 percent. The economy has lost 7.3 million jobs since the downturn began in December 2007, and unemployment reached a 26- year of 10.2 percent in October, according to figures from the Labor Department. ”
Orange County Register – “How much ‘hot’ inventory in south coast cities?” (12-3-09)
“the coastal city with the most affordable inventory for sale is San Clemente with Dana Point in second and Laguna Beach at at very distant third.”
Orange County Register - “O.C. homebuilding at historic slow pace” (12-3-09)
“Builders took out permits for just 1,777 new housing units in O.C. through October — the lowest number in data going back to 1946 (10-month totals were estimated for 1946-87).”
Tags: bankruptcy, borrower, bruce norris, builder, employment, fannie mae, federal housing administration, FHA, freddie mac, general growth, interest, inventory, labor department, lender, Lender Processing Services, loan, mortgage, real estate, Simon Property, Toll Brothers