Today’s News Synopsis:
The U.S. Treasury reports more than 1.4 million borrowers have been offered trial modifications under HAMP. The MBA’s weekly survey shows that mortgage application volume decreased by 9.6 percent from last week. Banks required over 25 percent more time to foreclose a property in in California last month than in March 2009. According to statistics from the Federal Reserve’s Beige Book, overall economic activity increased in nearly all parts of the country since March.
In The News:
MBA - “MBA’s Story Testifies on Revisions to the Home Affordable Modification Program” (4-14-10)
“According to Treasury, more than 1.4 million borrowers have been offered trial modifications under HAMP. One million borrowers are in active modifications, of which almost 230,000 represent permanent modifications. An additional 100,000 permanent modifications are pending borrower acceptance. And servicers have substantially increased the pace with which permanent modifications are being done.”
MBA - “Mortgage Applications Decrease in Latest MBA Weekly Survey” (4-14-10)
“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 9, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 9.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 9.5 percent compared with the previous week. This is the third lowest Market Index recorded in the survey since the end of June 2009.”
Inman - “Foreclosure process slows in California” (4-14-10)
“It took banks 27.9 percent longer, or 225 days, to foreclose on a property in California last month than it did in March 2009, and 0.45 percent longer than it did in February, according to data tracked by foreclosure data company ForeclosureRadar.com.”
CNN - “10 foreclosures for every home saved” (4-14-10)
“The Obama administration’s mortgage-modification program is not keeping pace with the deluge of foreclosures hitting the market, a government watchdog found. Only 168,708 homeowners have received long-term mortgage modifications under the president’s plan, as of February, a small fraction of the 6 million borrowers who are more than 60 days behind on their loans, according to the Congressional Oversight Panel’s latest report, released Wednesday.”
Mercury News – “Mortgage market: Government asks for advice on how to improve it” (4-14-10)
“The administration has not drafted any formal proposals to reform the housing finance system. Mortgage finance companies Fannie Mae and Freddie Mac nearly collapsed in September 2008. Propping them up has cost taxpayers about $126 billion so far. Among the questions the Treasury Department is asking are: What level should the federal government play in stabilizing the housing market? What kind of lending standards should be established? How should consumers be protected from abusive practices?”
Housing Wire – “Fed Beige Book Sees Increase in Housing Activity” (4-14-10)
“Overall economic activity increased in nearly all parts of the country, with many districts reporting increased activity in residential housing markets, according to the latest edition of the Federal Reserve’s Beige Book. The St. Louis district was the only one to not report an increase in overall economic activity, indicating a thaw may be in the works since the March edition of the Beige Book showed the toll taken by harsh winter weather.”
Housing Wire – “Donovan: Eliminating GSEs May Threaten Fragile Recovery” (4-14-10)
“Hasty action to quickly change the composition of the GSEs or to eliminate them would further drive down this housing market and cause taxpayer losses to increase”
Housing Wire – “One Year Down the Road, COP Says Success Still Escapes HAMP” (4-14-10)
“The private sector has found less success in modifying mortgages through HAMP than through other in-house strategies. According to testimony by Bank of America (BAC: 19.40 +3.91%) Home Loans president Barbara Desoer to the House Financial Services Committee this week, of BofA’s 14m mortgages, 1.4m are 60 or more days delinquent. All told, BofA completed 560,000 of its own modifications to those borrowers. Similar success escapes government-led initiatives as even though 391,000 borrowers at BofA were offered a HAMP mod, only 33,000 are now permanent through HAMP.”
Bloomberg - “FDIC Plans $1.97 Billion Sale of Loans From 22 Seized Banks” (4-14-10)
“The Federal Deposit Insurance Corp. is seeking bids on a $1.97 billion portfolio of loans from 22 seized banks, pushing the agency’s structured asset sales this year beyond the 2009 total. The sale consists of 1,739 loans mostly tied to commercial real estate, with borrowers late on payments for almost half the portfolio, according to a preliminary announcement obtained by Bloomberg News.”
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: beige book, bruce norris, Donovan, fannie mae, federal reserve economic, foreclose, foreclosure, foreclosureradar.com, freddie mac, government, gse, hamp, MBA, modification, mortgage, Obama, real estate, treasury