Today’s News Synopsis:
California unemployment increased to 12.6 percent last month. The SEC charged Goldman Sachs with fraud. According to the Commerce Department, Housing starts climbed to an annual rate of 626,000 last month. Fannie Mae is developing a new program to help families in foreclosure gain access to a new mortgage within 2 years.
In The News:
Sacramento Bee – “Jobs rebound, but California unemployment at 12.6 percent” (4-16-10)
“California’s unemployment inched up to 12.6 percent last month even though the state added 4,200 jobs, the federal government reported today. The numbers from the Employment Development Department are further evidence of the economy beginning to stir.”
Los Angeles Times – “Housing starts, permits rise as builders rebound” (4-16-10)
“Housing starts climbed to an annual rate of 626,000 last month, up 1.6 percent from February’s revised 616,000 pace, which was higher than initially estimated, Commerce Department figures showed Friday. Building permits, a sign of future construction, climbed to the highest level since October 2008.”
Wall Street Journal – “Mortgage Rates Reverse Course and Fall” (4-16-10)
“The 30-year fixed-rate mortgage averaged 5.07% for the week ended April 15, down from 5.21% last week. A year ago, the mortgage averaged 4.82%. The 15-year fixed-rate mortgage averaged 4.40%, down from 4.52% last week and 4.48% a year ago.”
Housing Wire – “Fannie Mae Director Outlines Program to Turn Homeowners into Renters” (4-16-10)
“Miguel Gutierrez said the goal of Fannie Mae is to minimize family displacement for borrowers that participate in a deed-in-lieu of foreclosure program, launched early in November 2009, while managing it in a way so as to not put any undue pressure on Fannie’s ever-growing rental portfolio. The homeowner-turned-renter is required to pay fair market rent to stay in their home for up to 12 months. The renter must have enough income to sustain a 31% income-to-rent ratio and rental payments are not subsidized by Fannie Mae, but could include renters eligible for Section 8 payments.”
Housing Wire – “Fannie Shortens Wait for Some Distressed Borrowers to Get New Loans” (4-16-10)
“Fannie Mae (FNM: 1.24 -4.62%) announced it is reducing the wait time for some borrowers between when they complete a short sale or deed-in-lieu of foreclosure transaction and when they can obtain a new mortgage. Previously, a borrower was required to wait four years before getting a new mortgage, or two years if their home sold in a short sale. Under the new guidelines, a borrower that previously completed a deed-in-lieu of foreclosure transaction can get a new mortgage in two years, provided the borrower has a 20% down payment.”
Housing Wire – “SEC Charges Goldman Sachs with Fraud Over Subprime RMBS CDO” (4-16-10)
“The Securities and Exchange Commission (SEC) today charged Goldman Sachs (GS: 160.70 -12.79%) and one of its vice presidents for allegedly defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages, demanding a jury trial for the allegations to be heard.”
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: bruce norris, builder, Commerce Department, deed-in-lieu, employment, fannie mae, Federal, fraud, Goldman Sachs, Miguel Gutierrez, mortgage, rental, sec