Sources:
http://www.housingwire.com/2010/08/05/weekl-jobless-claims-rise-more-than-expected-to-479000
http://www.realtor.org/press_room/news_releases/2010/08/pending_ease
http://www.housingwire.com/2010/08/03/zillow-rate-on-30-year-mortgage-drops-to-record-low-week-to-week
http://www.housingwire.com/2010/08/06/aig-losses-return-in-q210-on-continued-wind-down-efforts
http://latimesblogs.latimes.com/money_co/2010/08/home-loan-rates-decline-again-as-inflation-fears-abate.html
http://www.mbaa.org/NewsandMedia/PressCenter/73603.htm
http://www.dsnews.com/articles/congress-passes-bill-increasing-fha-premiums-2010-08-05
http://www.bloomberg.com/news/2010-08-04/u-s-consumer-bankruptcy-filings-rose-9-percent-in-july-from-previous-year.html
http://www.reoi.com/news/fannies-reo-volume-doubles-on-mounting-foreclosures-and-longer-disposition-times
http://www.dsnews.com/articles/ahead-of-earnings-gses-scale-back-housing-forecasts-2010-08-05
http://www.reoi.com/wp-content/uploads/Fannie-REO.jpg
http://www.reoi.com/wp-content/uploads/Fannie-REO-by-State.jpg

Today’s News Synopsis:

Non-farm payrolls decreased by 131,000 in July, according to the Department of Labor. HUD’s secretary announced a new program, which will allow borrowers to refinance on underwater mortgages. Barclay’s Capital is taking back their previous estimate of a double dip recession, and now believes we will experience ‘moderate growth’. One-third of U.S. citizens are renting, and more than 14% live in a rental apartment.

In The News:

Housing Wire – “U.S. Payrolls Shed More than Expected, Dropping 131,000 in July” (8-6-10)

“Total non-farm payrolls declined by 131,000 in July, worse than a market consensus decline of 70,000. According to the Department of Labor Bureau of Labor Statistics (BLS), the firings of temporary workers after 2010 Census efforts edged up to 143,000 in July, declined from 225,000 Census layoffs a month earlier.”

Housing Wire – “HUD Secretary Donovan: Refinancing Program Coming ‘Very Soon’” (8-6-10)

“According to a mortgee letter sent out today, the new program would provide additional refinancing options to underwater homeowners starting Sept. 7. To be eligible for the new loan, the homeowner must be underwater but still current on the mortgage. A credit score of 500 or better is required, and the borrower’s existing first-lien holder must agree to write at least 10% of the unpaid principal balance.”

Housing Wire – “Barclays Capital Calls off Double-Dip Recession” (8-6-10)

“Analysts at Barclays Capital believe the latest data on the US economy leans more toward ‘moderating growth’ in the last half of 2010, rather than an outright double-dip. Last week’s real gross domestic product (GDP) in the US, which measures the output of goods and services produced by the country’s labor force, grew 2.4% in Q210 from last year, according to the US Department of Commerce Bureau of Economic Analysis (BEA).”

Housing Wire – “Apartment Rentals Hit Record Highs in 2010, as More Americans Shun Homeownership” (8-6-10)

“Currently one-third of Americans rent their housing, and over 14% live in a rental apartment. The NMHC represents the interests of rental property investors, such as Fannie Mae, Freddie Mac, Stewart Title and Starwood, to name a few.”

Housing Wire - “Navy Federal Introduces 100 Percent Mortgage to Make $7bn Origination Goal” (8-6-10)

“The world’s largest credit union said it’s prepared to originate $7bn in mortgage and refinance originations in 2010, and announced it will offer 100% financing to its members for loans up $650,000. Navy Federal Credit Union said it originated more than $6.2bn in mortgages and refinance loans in 2009. The Virginia-based credit union is the world’s largest, both in terms of total assets ($40bn) and membership (3.4m). Navy Federal serves all current and former Department of Defense military and civilian personnel and their families.”

Housing Wire – “Consumer Credit Down for Fifth Straight Month 0.7 Percent For June” (8-6-10)

“Americans are not in the mood to spend as consumer credit outstanding fell once again in June, according to the Federal Reserve, marking the fifth consecutive month of declines. The benchmark fell $1.3bn, or 0.7%, to $2.418trn due mostly to a $4.5bn, or 6.5%, drop in revolving credit, such as credit cards. Non-revolving credit, which includes mortgages, auto loans, and student loans, rose 2.4% to $1.592bln.”

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According to Callahan & Associates, the credit union industry originated $95bn from residential mortgages in 2009. The Labor Department reports that 36,000 jobs were lost in February. Chris Kotowski predicts that Fannie Mae and Freddie Mac may force other lenders to to buy back $21 billion of home loans this year. $4.1 billion in lending was sought from the Federal Reserve throughout the last six months.

In The News:

Business Journal – “Tiny supply builds hope for housing industry” (3-5-10)

“Existing homes listed for sale are in shorter supply here on a per-capita basis than in 18 major metro areas, including Chicago, Dallas and Atlanta. And unlike areas where condo towers proliferate, such as Las Vegas, the Southern California coast and south Florida markets, Sacramento has among the fewest finished-but-vacant new homes in the country.”

Wall Street Journal – “Study Sees FHA Taking More Risk” (3-5-10)

“economists warn that the Federal Housing Administration—which has jumped to fill the void left by the collapse of the private mortgage market—is overlooking factors that signal higher losses, according to a working paper released Thursday. The agency has traditionally turned a profit for the U.S. government. But the economists warn that by underestimating the risks it faces, the FHA has increased the likelihood that it will have to ask Congress for money for the first time in its 75-year history.”

Housing Wire – “Credit Unions Originate $95bn in Residential Mortgages in 2009″ (3-5-10)

“The credit union industry originated $95bn in residential mortgages in 2009, taking a 4.5% share of the nation’s total mortgage market. Including the mortgages written last year, the nation’s 7,710 credit unions originated more than $271.9bn in new loans, a 7.1% increase over 2008, according to data released by Callahan & Associates, a Washington, DC-based financial consulting firm that specializes in the credit union industry.”

Housing Wire – “Unemployment Holds at 9.7% in February” (3-5-10)

“The economy lost 36,000 jobs in February and the unemployment rate held at 9.7%, according to the Labor Department’s Bureau of Labor Statistics monthly report. The 9.7% unemployment rate is steady from January, but up from February 2009’s rate of 8.2%. The U-6 unemployment rate, which includes not only those without jobs, but also the underemployed, was 16.8% in February, up from 16.5% in January, but down from December’s 17.3%. A year ago, the U-6 unemployment rate was 15%.”

Housing Wire - “Bair: Too Soon to Know How Successful HAMP Will Be” (3-5-10)

“It is true that the numbers of trial and permanent modifications have lagged behind program projections. But at the same time, we saw a slowdown in the pace of new foreclosures in the second half of last year.”

Bloomberg - “Fannie, Freddie Ask Banks to Eat Soured Mortgages” (3-5-10)

“Fannie Mae and Freddie Mac may force lenders including Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. to buy back $21 billion of home loans this year as part of a crackdown on faulty mortgages. That’s the estimate of Oppenheimer & Co. analyst Chris Kotowski, who says U.S. banks could suffer losses of $7 billion this year when those loans are returned and get marked down to their true value. Fannie Mae and Freddie Mac, both controlled by the U.S. government, stuck the four biggest U.S. banks with losses of about $5 billion on buybacks in 2009, according to company filings made in the past two weeks.”

Bloomberg - “Fed’s TALF Winds Down With Most Loan Requests in Six Months” (3-5-10)

“The Federal Reserve received the most loan requests in six months from investors for the final round of its program that unlocked the market for asset-backed securities. About $4.1 billion in lending was sought, including $1.8 billion for financing of student-loan securities, the New York Fed said yesterday on its Web site. In total, about $7.1 billion of sales this week were of securities that included eligible classes, according to data compiled by Bloomberg.”

Bloomberg - “Fed Presidents Say Rates Need to Be Low Early in U.S. Recovery” (3-5-10)

“Two regional Federal Reserve Bank presidents, speaking before today’s release of a February report on U.S. jobs, said they believe the central bank should keep rates low until the recovery picks up.”

Inman - “Hitwise: Zillow reclaims No. 2 spot” (3-5-10)

“Zillow eked out a tiny edge over Yahoo Real Estate in February to reclaim its title as the second-most visited real estate site on the Web, according to rankings compiled by Web metrics firm Hitwise. Zillow, which was bumped into third place by Yahoo Real Estate in December, captured 3.43 percent of traffic in the real estate category during February, Hitwise said, compared to 3.4 percent for Yahoo Real Estate. Realtor.com retained its top spot on the Hitwise top 10 list, with 6.67 percent of traffic in the category.”

Looking Back:

One year ago, the Mortgage Bankers Association asked to have the 105 percent LTV limit raised. The MBA observed an increase in delinquencies on mortgage loans. The NAA reported that gross receipts for real estate auctions grew about 1.1.