Today’s News Synopsis:
If passed, a new California bill will require lenders to make a decision on mortgage modifications before beginning the repossession process. According to the Census Bureau, the national home vacancy rate fell to 2.6% in the first quarter. A study from the University of Chicago’s Booth School of Business shows that 35% of mortgage defaults in the U.S. were strategic during September 2010.
In The News:
Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey”z (4-27-11)
“Mortgage applications decreased 5.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 22, 2011.”
Los Angeles Times – “California bill ending ‘dual track’ foreclosures faces key vote” (4-27-11)
“A proposed law facing a key vote in Sacramento on Wednesday would require lenders in California to make a decision on mortgage modifications for delinquent homeowners before beginning the repossession process, in effect ending “dual track” foreclosures in the state.”
Bloomberg – “Home Vacancies Fall in First Quarter as Foreclosures Stall” (4-27-11)
“The U.S. home-vacancy rate, a measure of the share of properties empty and for sale, fell to 2.6 percent in the first quarter as foreclosures slowed amid a lender backlog in processing paperwork. The rate, down from 2.7 percent in the fourth quarter, is based on 2 million vacant properties for sale out of 74.5 million residences, the Census Bureau said today.”
Inman – “FICO to walkaways: You’re on our screen” (4-27-11)
“A study by researchers at the University of Chicago’s Booth School of Business found that during last September alone, 35 percent of mortgage defaults in the U.S. were strategic — up sharply from 26 percent in March 2009.”
Bloomberg – “Fed Says Recovery is ‘Moderate’; Bond Buying to End in June” (4-27-11)
“Federal Reserve policy makers said the economy is recovering at a ‘moderate pace’ and a pickup in inflation is likely to be temporary, as they agreed to finish $600 billion of bond purchases on schedule in June.”
One year ago, The S&P Index showed home prices increased in February. Speculators believed the Federal Reserve would keep interest rates at the 2010 low. The LexisNexis Mortgage Asset Research Institute reported that fraud increased by 7 percent in 2009. According to the FHFA, the average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09% during April 2010.
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