Today’s News Synopsis:
According to First American CoreLogic, 12 percent of mortgages in Sacramento, El Dorado, Placer and Yolo were seriously distressed in December. ZipRealty reports the national home inventory increased by 2.9 percent last month. The Department of Labor announced that the unemployment rate decreased to 9.7% in January. The FTC proposed a new rule which would prohibit third-party mortgage companies from charging upfront fees for foreclosure rescue and modification services.
In The News:
Sacramento Bee – “12% distress rate seen for region’s mortgages” (2-5-10)
“Twelve percent of mortgages in Sacramento, El Dorado, Placer and Yolo counties were seriously distressed in December, the newest warning that trouble is not abating, according to Orange County-based market analyst First American CoreLogic.”
The Washington Post – “Official says Fed might buy more mortgage-backed securities” (2-5-10)
“The Federal Reserve would consider reopening its program to support the mortgage market if interest rates spiked or the economy showed new weakness, Federal Reserve Bank of New York President William C. Dudley said in two new interviews. The Fed is buying $1.25 trillion in mortgage-backed securities in its effort to prop up the economy but has said it will end those purchases March 31.”
Inman - “For-sale inventory rises in January” (2-5-10)
“Monthly for-sale home inventory increased in January for the first time in 18 months, according to a report by national real estate brokerage company ZipRealty. The number of homes for sale increased 2.9 percent from December, an additional 15,818 homes, to a total of 567,265 single-family homes and condominiums listed in 27 metropolitan areas across the country. December saw 2009’s greatest fall in month-to-month inventory, down 4.83 percent.”
Housing Wire – “HUD Connects Sustainable Housing With Job Creation” (2-5-10)
“The new HUD initiative comes as the US unemployment rate lingers near historic highs. The unemployment rate dropped slightly to 9.7% in January from recent 10% highs, according to the US Department of Labor.”
Housing Wire – “Beazer Posts Quarterly Profit After $101m Tax Refund” (2-5-10)
“Homebuilder Beazer Homes (BZH: 4.16 +1.22%) reported income of $44.5m, or $1.09 per share, in its fiscal year first quarter that ended on December 31, 2009. It’s the second consecutive profitable quarter for the Atlanta-based builder. In its fiscal year Q409 that ended Sept. 30, Beazer reported a $35.3m profit. In the year-ago quarter, Beazer reported a loss of $79.2m.”
Housing Wire – “FTC Rule Bans Up-Front Fees on Mortgage Modifications” (2-5-10)
“The Federal Trade Commission proposed a new rule to prohibit third-party mortgage companies from charging upfront fees for foreclosure rescue and modification services. The FTC brought 28 cases against companies that charge a fee, promising the borrower a modification from the lender. The cases allege these companies never provided the services promised and that they misrepresent their affiliation with the government and other housing assistance programs, including the Home Affordable Modification Program (HAMP).”
Housing Wire – “Fed MBS Purchases 94% Complete with Another $12bn” (2-5-10)
“The Fed bought a total of $17.6bn in mortgage-backed securities (MBS) – $5.6bn Freddie Mac (FRE: 1.16 0.00%) MBS, $9.3bn Fannie Mae (FNM: 0.97 -1.02%) MBS and $2.7bn Ginnie Mae MBS, according to a summary of purchases. The New York Fed also sold $5.6bn of MBS in the same week, bringing the net purchases to $12bn, the same as last week.”
Realty Times – “Housing Affected by Demographic Trends” (2-5-10)
“The Urban Land Institute predicts there will be two major changes beginning in this new decade in our country that will affect the housing market. The first is that home appreciation will slow. The report predicts annual appreciation of 1 percent to 2 percent. The second change is that the record-high U.S. homeownership rate will decline from 69 percent to 62 percent.”
Tags: beazer, bruce norris, CoreLogic, Department of Labor, economy, employment, fannie mae, First American, foreclosure, freddie mac, FTC, Ginnie Mae, hamp, HUD, inventory, modification, mortgage, real estate, Urban Land Institute, ZipRealty