Today’s News Synopsis:
436,000 people have dropped out of the mortgage modification program since March 2009. A survey from Grant Thornton LLP shows that 45% of bankers expect economic conditions to improve over the next 6 months. According to CoreLogic, national housing prices increased 2.6% in April 2010 compared to April 2009. Analyst Meredith Whitney believes the U.S. housing market will experience a second recession.
In The News:
Los Angeles Times – “Borrowers face foreclosure after Obama loan assistance program fails to provide help” (6-21-10)
“More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. That’s more than the 27 percent who have managed to have their loan payments reduced to help them keep their homes. Last month alone, 150,000 borrowers left the program — bringing the total to 436,000 who have exited since it began in March 2009.”
Housing Wire – “More Bankers Expect Economic Improvement before 2011: Grant Thornton” (6-21-10)
“The majority of bankers are optimistic about the US economy in coming months, with 45% expecting conditions to improve over the next six months, according to a survey by US audit firm Grant Thornton LLP. It marks a significant improvement over the same survey six months earlier, which found 24% of respondents expected conditions to improve.”
Housing Wire – “SEC Charges Investment Advisor with CDO of Mortgage-Backed Securities Fraud” (6-21-10)
“The Securities and Exchange Commission is charging Thomas Priore, owner and president of ICP Asset Management, with the fraudulent management of investment products tied to the mortgage finance markets. It is alleged that ICP and three affiliated firms misrepresented four multi-million-dollar collateralized debt obligation (CDO) platforms backed by mortgage securities (MBS). The SEC claims the CDOs lost tens of millions of dollars, while Priore collected tens of millions of dollars in advisory fees and undisclosed profits at the expense of their clients and investors.”
Housing Wire – “Total Number of HAMP Permanent Modifications Passes 340,000″ (6-21-10)
“Servicers participating in the Home Affordable Modification Program (HAMP) conducted 340,459 permanent modifications through May 2010 since the program launched in March 2009, up from 299,092 through April, according to the Treasury Department. The Treasury launched HAMP to provide incentives to servicers for the modification of mortgages on the verge of foreclosure. In order to receive a permanent modification, borrowers must make three monthly payments during the trial period and submit all documentation.”
Housing Wire – “Architecture Firms See Business Increase with Demand for Smaller Houses: AIA” (6-21-10)
“AIA conducted a survey of 500 architecture firms that concentrate practices in the residential sector. AIA also found that American homebuyers are showing greater interest in smaller homes and lot sizes. According to the survey, the economic downturn and growing concerns over rising utility costs have created a demand for smaller homes and lot sizes.”
Housing Wire – “CoreLogic Home Price Index Up 2.6% in April” (6-21-10)
“National housing prices increased 2.6% in April 2010 compared to April 2009 in the CoreLogic (CLGX: 18.335 -2.16%) monthly home price index (HPI). It’s the second month in a row that prices have increased from the same month one year ago. The April increase comes after a 2.3% year-over-year increase in March. The HPI was upwardly revised from an original projection of a 1.7% increase for March.”
Bloomberg - “Whitney Says She Sees ‘Double Dip’ in Housing Market” (6-21-10)
“The U.S. housing market will experience a second recession, forcing banks to post additional loan-loss reserves, analyst Meredith Whitney said.”
Orange County Register – “House price per sq. ft. highest in 2 years” (6-21-10)
“The median price per square foot paid to buy an Orange County house hit $296.32 in May, the highest that measure has been since August 2008, figures from MDA DataQuick show. The price per square foot for an existing, single-family home has been on an upsurge after bottoming out in January 2009, increasing from the month before in 10 of the past 13 months.”
Orange County Register – “5 O.C. hot spots for home-price cuts” (6-21-10)
“As of June 1, 29% of homes on the market in Orange County have seen at least one price reduction, according to online home tracker Trulia.com. Nationwide, 22% of listings had at least one price trim, with the average reduction 10% off the original asking price.”
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