Strategic Mortgage Defaults A Cause For Concern
A new report from the National Consumer Law Center (NCLC) titled “Why servicer’s foreclose, when they should modify, and other puzzles of servicer behavior”, says the number of borrowers expected to walk away from their homes is projected to increase. This is known as strategic default, when a borrower decides to stop making payments on [...]
Making Home Affordable?
A new study out from the Federal Reserve Bank of Boston concluded that “lenders expect to recover more from foreclosure than from a modified loan”. The reason? Only about 30% of homeowners that fall behind on their mortgage payments are able to start paying again without lender intervention. When loans are modified, 30% to 45% [...]
More Mortgage Woes Ahead
When the Obama administration established programs in March to help home owners modify mortgage payments or refinance for a lower interest rate, the intent was to curb the foreclosure crisis and keep families in their homes. Now, seven months later, rates are ticking up, programs are expiring and foreclosure numbers are still on the increase. [...]
Democrats Say Lenders Are Falling Short
Four U.S. Democrats introduced legislation on Wednesday that would slow record high foreclosure rates and stabilize the housing market. “This bill will force lenders to modify qualified mortgages, create a homeowners assistance program and give states a bigger role in mediation efforts, says Senator Dick Durbin (D), adding, voluntary efforts to keep families in their [...]
Resetting Option ARM’s Increasing Mortgage Delinquencies
The unemployment rate in the U.S. is now at 9.7%. A record 7.58% of U.S. homeowners with a mortgage were delinquent by at least 30 days in the August, up from 7.32% in July according to Equifax. August marked the fourth consecutive month with an increase in mortgage delinquencies. In the months leading up to [...]
More Changes Ahead for Freddie Mac and Fannie Mae
A proposal released Wednesday by the Mortgage Bankers Association is asking congress to split Freddie Mac and Fannie Mae. The proposal outlines a detailed plan for restructuring the U.S. mortgage market by establishing a “proposed framework for a refined government role in the secondary mortgage market designed to ensure liquidity for mortgages without presenting unnecessary [...]
California Housing Woes To Continue
Trans Union, a Chicago based credit information company and one of the 3 largest credit reporting agencies in the U.S., reported this week that, “in the immediate future the percentage of California home loans that are delinquent by at least 60 days or are in foreclosure is projected to skyrocket to more than 14% by [...]
Fed Says Growth Likely To Return
Federal Reserve Chairman Ben Bernanke offered his most optimistic outlook on the economy since the financial crisis began last September. Bernanke, during his Jackson Hole Wyoming speech said, “After contracting sharply over the past year, economic activity appears to be leveling out, both in the United States and abroad, and the prospects for a return [...]
Mortgage Delinquencies Surge
The Federal Reserve reported that home mortgage delinquencies rose to 7.91%, the highest level since the Fed began tracking delinquencies. Credit card delinquencies, at 6.5%, are also at record highs. Commercial real estate delinquencies are also rising rapidly at 6.4%. The overall delinquency rate of all consumer loans stands at 4.7%, also a record.
Mortgage Delinquencies Continue to Increase
The Office of the Comptroller of the Currency and the Office of Thrift Supervision report that mortgage delinquencies are still rising, and re-defaults of modified mortgages are high and rising quickly. The report covers two-thirds of all U.S. mortgages. Over 40% of loan modifications are at least 2 months delinquent within 8 months. 32% the [...]
-
Sponsor
-
Recent Posts
-
Archives
-
Blogroll
