Today’s News Synopsis:
A survey from Bank of America shows that only 12 percent of the institutions who received TARP relief believe that the program positively impacted their operations. Barclay’s estimates that credit availability may increase during the next 6 to 12 months. Default Research reports that pre-foreclosure filings in California decreased in several counties. Statistics from Freddie Mac show that mortgage purchases decreased by 13% in November.
In The News:
Housing Wire – “Only 12% of Bank Execs Think TARP Leaves Positive Impact” (12-30-09)
“While larger financial institutions complete full repayment of the Troubled Asset Relief Program (TARP), as is the case with the $45bn repaid last week by Citi (C: 3.32 -1.48%) and Wells Fargo (WFC: 26.82 +0.52%), a bank survey completed by the Bank Administration Institute (BAI) claims only 12% of respondents feel the program positively impacted their operations.”
Housing Wire – “Origination Funding May Increase as Credit Restrictions Ease in 2Q10, Analysts Predict” (12-30-09)
“A recent set of research focusing on 2010 strategies for investors of agency mortgage-backed securities (MBS) by analysts at Barclays Capital finds that credit availability for mortgage originations may increase in the next six to 12 months. However, the situation will remain tight in the next three to six months, they add, as the market grapples with ongoing risk aversion sentiments, loan repurchases stabilization and new regulatory procedures that will need this time to take hold.”
Housing Wire – “Foreclosure Notices Drop in Major Counties: Default Research” (12-30-09)
“The number of pre-foreclosure filings in California, which include notices of default and notices of trustee sales, dropped across several counties in November, according to statistics from Default Research, which tracks the notices. The hard-hit Los Angeles County had a 10% decline from last month to 3.08% in November. Orange County, where 3.4% received a filing, had a drop of 8% in November. In Riverside County, 9.2% received a pre-foreclosure filing, a 13.7% decline from October.”
Housing Wire – “NAMB Criticizes Regulation Z Amendment” (12-30-09)
“In a letter to the Federal Reserve Board, the National Association of Mortgage Brokers (NAMB) said that certain aspects of the proposed rule to amend Regulation Z would impede market competition. Section 404 of the Helping Families Save their Home Act of 2009 took effect in May and requires a 30 day notice to mortgage borrowers of their loans being transferred for securitization. Called Regulation Z, the Fed’s interim final rule enforces the requirement under the Act.”
Housing Wire - “Fannie’s Serious Delinquencies Nears 5% in November” (12-30-09)
“After mortgage giant Freddie Mac (FRE: 1.42 -5.33%) reported a 13% drop in mortgage purchases in November, Fannie Mae (FNM: 1.16 -7.20%) shows its book of business declined at an annualized rate of 6.7% in the same month, according to its monthly summary”
Housing Wire – “List of HAMP Servicers Moves Past 100″ (12-30-09)
“The US Treasury Department added four new servicers to the Home Affordable Modification Program (HAMP), raising the total number of participants to 103, according to the latest Troubled Asset Relief Program (TARP) transaction report.”
Bloomberg - “GMAC Said to Discuss U.S. Aid Package of $3 Billion or More” (12-30-09)
“GMAC Inc., the home and auto lender that counts the U.S. government as the largest stakeholder, is discussing with the Obama administration a third bailout of $3 billion to $4 billion, said a person familiar with the matter.”
Orange County Register – “Tough market eyed for high-end housing” (12-30-09)
“There is a chance this is not the bottom for the all price ranges! However, under $500,000 looks to be in pretty good shape, although appreciation will continue to be very faint! Above $500,000 it will continue to be a tough market, as there are very few move-up buyers from the lower price ranges with money to support the higher price structure”
Looking Back:
One year ago, the Case Schiller index showed that home prices dropped by 18 percent in 20 major U.S. cities. Lockhart estimated that the government would need to provide lower borrowing costs to Fannie Mae and Freddie Mac. The Federal Reserve forecasted that mortgage modifications would be significantly hindered by second mortgages. Fannie Mae’s portfolio of mortgages increased by 9.3 percent in one month.
About Bruce Norris
Bruce Norris is an active investor, hard money lender, and real estate educator with over 30 years experience. Bruce has been involved in over 2,000 real estate transactions as a buyer, seller, builder and money partner.
Tags: Bank of America, Barclays, BofA, credit, default research, fannie mae, foreclosure, freddie mac, GMAC, hamp, MBS, mortgage, NAMB, Regulation Z, TARP, treasury