Today’s News Synopsis:
The federal government claims Deutsche Bank commited mortgage fraud, and is suing the bank. LPS said 500,000 borrowers became current on their loans in the first quarter. Michael Fratantoni of the MBA predicts a full housing recovery is 3 to 4 years away. The combined sales of all broker-run transactions fell $226 million year over year.
In The News:
The Washington Post – “Federal government sues Deutsche Bank in NYC, alleging it committed mortgage fraud” (5-3-11)
“The federal government sued Deutsche Bank Tuesday, saying the bank committed fraud and padded its pockets with undeserved income as it repeatedly lied so it could benefit from a government program that insured mortgages.”
Wall Street Journal – “Banks Are Lending, but Pace Falls Shy” (5-3-11)
“Big banks eased lending standards and businesses sought more loans in the first quarter of the year, the Federal Reserve said. In its quarterly Senior Loan Officer Opinion Survey released Monday, the Fed said the share of banks ‘that reported having become more willing to make consumer installment loans rose to its highest level since the first half of 1994.'”
Housing Wire – “Half a million bad mortgages got better or foreclosed in first quarter” (5-3-11)
“Lender Processing Services (LPS: 28.60 +0.03%) said 500,000 ailing mortgage borrowers either came current on their payments or lost their home to foreclosure in the first quarter, according to a recent mortgage monitor from the Florida-based data provider.”
Housing Wire – “Shadow inventory will keep housing recovery at bay for three to four years” (5-3-11)
“A full housing recovery is three to four years off as the nation grapples with a shadow housing inventory of 4.5 million distressed properties, according to Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association.”
Bloomberg – “Commercial Property Prices May Fall, Apollo’s Azrack Says” (5-3-11)
“U.S. commercial property prices may fall within a year as building owners attempt to refinance $1 trillion in mortgages, according to Joseph Azrack, head of real estate for Apollo Global Management LLC.”
Orange County Register – “Home sales generating 7% less in 2011” (5-3-11)
“The combined sales of all broker-run transactions fell by $226 million from the first quarter last year, when home sales generated a total of $3.35 billion – revenue divided between home sellers and their agents. During the first three months of this year, both sales and prices dropped from year-ago levels. The average price of an Orange County home sold through the MLS fell 2.8% in the first quarter to $540,856.”
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