Housing Market Recovery Dependent On Reduction Of “Oversupply Of Distressed Homes” (Video)

10 09 2011

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Categories : Bank-Owned, Defaults, Delinquencies, Financing, Foreclosures, Housing Market, Investors, Mortgage Industry, Purchases

U.S. Housing Market Continues To “Struggle Mightily” As Litigation And Mortgage Delinquencies, Foreclosures Keep Downward Pressure On Prices (Video)

23 08 2011

Nicolas Retsinas, director emeritus of the Joint Center for Housing Studies at Harvard University, discusses the U.S. housing market. Retsinas speaks with Erik Schatzker and Michael McKee on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)


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Categories : Bank-Owned, Defaults, Delinquencies, Federal Government, Financing, Home Values, Housing Market, Statistics, Videos

Short Sales Process Has Been Aided By 45-Day Requirement For Banks To Respond To Short Sale Requests; Sellers Eligible For Up To $3,000 In Aid (Video)

22 08 2011

The short sale system has been simplified by the Obama Administration. The Treasury Department unveiled rules requiring banks to respond to homeowner short sale requests within 45 days. Short sale sellers are also eligible for up to $3,000 in aid to move. By some estimates up to 275,000 foreclosures could be prevented by these efforts.


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Categories : Bank-Owned, Delinquencies, Economic Statistics, Federal Government, Foreclosures, Housing Market, Mortgage Industry, Purchases, Short Sales, Videos

Fannie Mae, Freddie Mac And FHA Now Own Half Of All Foreclosed Properties And Obama Administration Is Seeking Proposals On How Best To Shrink Inventory

10 08 2011

The Federal Housing Finance Agency, which regulates Fannie and Freddie, will issue the formal "request for information" with the administration to solicit proposals that shrink the glut of foreclosed properties weighing on the residential market.


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Categories : Bank-Owned, Defaults, Delinquencies, Fannie Mae, Federal Government, FHA, Foreclosures, Freddie Mac, Housing Market, HUD, Statistics

Foreclosure Update: Fannie Mae Disposed Of 13.3% More REO’s In 2nd Quarter 2011 But Believes Delays In Foreclosure Process Will “Delay The Recovery Of The Housing Market”

5 08 2011
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  • Fannie Mae acquired 53,697 single-family real-estate owned (REO) properties, primarily through foreclosure, in the second quarter of 2011
  • This compared with 53,549 in the first quarter of 2011
  • Fannie Mae disposed of 71,202 single-family REO in the second quarter of 2011
  • This was a 13,3% increase over the 62,814 REO in the first quarter of 2011
  • As of June 30, 2011, the company’s inventory of single-family REO properties was 135,719
  • This represented a 11.4% decrease from the 153,224 REO as of March 31, 2011
  • The carrying value of the company’s single-family REO was $12.5 billion, compared with $14.1 billion as of March 31, 2011.

The changing foreclosure environment has significantly lengthened the time it takes to foreclose on a mortgage loan in many states, which has slowed the pace of Fannie Mae’s REO property acquisitions. The increase in foreclosure timelines also has increased Fannie Mae’s credit-related expenses and negatively affected its single-family serious delinquency rates. Fannie Mae believes these changes in the foreclosure environment will continue to negatively affect its foreclosure timelines, credit-related expenses, and single-family serious delinquency rates. Moreover, Fannie Mae believes these changes in the foreclosure environment will delay the recovery of the housing market because it will take longer to clear the housing market’s supply of distressed homes, which typically sell at a discount to non-distressed homes and therefore negatively affect overall home prices.

For more:  http://www.fanniemae.com/media/pdf/newsreleases/q22011_release.pdf;jsessionid=L4ZZUGKM20MSZJ2FQSISFGA


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Categories : Fannie Mae, Foreclosures, Home Sales, Housing Market, Mortgage Industry, REO Insider, REO's, Statistics

U.S. Housing Market: “Shadow Inventory” In April 2011 Declines To 1.7 Million Homes From Peak Of 2 Million In January 2010; Homes That Are “50% Underwater” With Negative Amortization Loans Climbs To 2 Million Representing Future Defaults

29 06 2011
http://renovationlendinginstitute.com/
  •  Shadow inventory for residential properties declined to 1.7 million units in April according to CoreLogic
  •  This five months’ worth of supply is down from 1.9 million units compared to April 2010.
  • Shadow inventory has gone down because there are fewer delinquencies and more distressed sales
  • It will probably take several years for the shadow inventory to be absorbed given the long timelines in processing and completing foreclosures
  • Out of all the shadow inventory supply, 790,000 units are seriously delinquent, 440,000 are in some stage of foreclosure and 440,000 are REO properties
  • Shadow inventory, also known as pending supply, is calculated by determining the number of distressed properties not listed on multiple listing services where the mortgage is 90 days or more late, in foreclosure already, or REO on the books of a financial institution
  • Shadow inventory peaked in January 2010 at two million units, which is eight and a half months’ supply
  • However, there are two million negative equity loans that are more than 50% or $150,000 “upside down.”
  • This would severely restrict the owners’ ability to refinace or sell the home
  • “This is another layer that is sitting behind the shadow,” said Sam Khater, senior economist at CoreLogic
  • How many of those will default is difficult to predict but negative equity of 50% or more increases the likelihood of default

For more:  http://www.mortgageservicingnews.com/msn_features_reo/shadow-inventory-slowdown-1025477-1.html?ET=mortgageservicing:e1454:87423a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=MSN_REO_062911&site=default_reo


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Categories : Federal Government, Financing, Foreclosures, Home Sales, Housing Market, Mortgage Industry, REO's, Shadow Inventory

“Stabilization Of Home Prices” Will Be Dependent On The Ability Of FHA, Fannie Mae And Freddie Mac Holding Properties “Off The Market”

22 06 2011

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  • The FHA, Fannie Mae and Freddie Mac will begin to take on a larger share of seriously delinquent loans and foreclosed properties
  • Policymakers will be an important factor for home prices, since these entities could in theory be used to hold supply off of the market in an effort to support prices
  • The chart below shows how distressed property sales appear to be weighing on home prices:

  • The FHA, Fannie Mae and Freddie Mac do not appear to be holding  properties back from the market
  • FHA is constrained by costs and it has been trying to raise its capital level after concerns last year that it would fall below required minimums
  • The Treasury is providing temporarily open-ended financial support to Fannie Mae and Freddie Mac
  • Despite federal support, the GSEs have not made any significant new attempts to hold supply off the market.

For more:  http://ftalphaville.ft.com/blog/2011/06/21/601021/federal-shadow-housing-inventory-is-getting-bigger/


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Home Prices Make New “Post Bubble” Lows As “Four-Year” Supply Of “Foreclosure Inventory” May Further Erode Home Values; Poor Condition Of REO’s Make Renovation Financing Critical

1 06 2011

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  • S&P Case-Schiller reported that house prices have hit a new post-bubble low, down almost a third from their 2006 peak
  • Pending home sales, according to the National Association of Realtors, fell by 27% in April 2011 from previous year
  • This represented an 11.6 percent fall for the month
  • Many buyers are swamped by negative equity in their current house and those who are not are reluctant to commit their own capital to a falling market
  • Tighter underwriting standards would force current homeowners to pay existing lender to cover the equity shortfall and then pay a larger down-payment for the new house
  • Continued sales of foreclosed homes is one of the prime forces driving prices lower
  • Banks are more willing to cut prices to get a sale done than homeowners
  • Many foreclosures are in poor condition, requiring further discounts to entice buyers
  • The foreclosure system is overwhelmed, even despite a drop in new foreclosure starts and delinquencies
  • Lawsuits over improper foreclosure procedures has slowed the process with banks deliberately holding properties back so as not to further erode prices
  • At the current rate of sales it will take more than four years for banks to sell off their existing inventory of foreclosed or seriously delinquent houses
  • More than 40 percent of delinquent mortgages have been delinquent for more than a year, according to Lender Processing Services

For more:  http://blogs.reuters.com/jamessaft/2011/05/31/u-s-housings-sinking-feeling/


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Categories : Bank-Owned, Defaults, Delinquencies, Foreclosures, Homes, Housing Market, Mortgage Industry, Purchases, Realtors, Statistics

Combined REO Inventory Of Fannie Mae, Freddie Mac And FHA Declines Slightly To 287,184 Units At End Of March 2011 But Pace Of Foreclosuures AND REO Sales Is Accelerating

23 05 2011

The combined REO inventory for Fannie, Freddie and the FHA1 decreased to 287,184 at the end of Q1 2011, from a record 295,307 units at the end of Q4 as shown in the second graph. The pace of foreclosures is picking up, but so is the pace of REO sales. Freddie Mac noted REO sales were at record levels in Q1 where the pace of REO acquisitions will increase in the remainder of 2011, in part due to the resumption of foreclosure activity by servicers, as well as the transition of many seriously delinquent loans to REO. REO disposition reached record levels in 1Q 2011 with over 30,000 homes sold. Fannie Mae also sold a record 62,814 REO in Q1, up from 38,095 in Q1 2010 and 185,744 for all of 2010. So Fannie and Freddie sold over 90,000 REO in Q1, and their combined inventory only declined by 16,185. They are foreclosing at record levels, but they are finally selling REOs faster than they acquire them.


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Categories : Bank-Owned, Defaults, Delinquencies, Fannie Mae, FHA, Freddie Mac, HUD, Mortgage Industry, REO's

“Short Sale Or Foreclosure”: Homeowners Will See FICO Scores Fall To 570-595 Range With Either Strategy; Credit Scores Will Take Up To 7 Years To Increase Back To Previous Levels

25 04 2011

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  • FICO will not be higher if homeowners choose “short sale” over foreclosures
  • Mortgage delinquency data from the nation’s three major credit bureaus was used to make this decision
  • Potential borrowers with short-sales will have FICO scores in the 575-to-595 range at one credit bureau
  • This is  the same as having a foreclosure on their credit report
  • FICO scores will be either in the 570-to-590 range or the 620-to-640 range at the two other credit bureaus
  • Short sales and foreclosures will remain on credit reports for three-to-seven year credit restoration

For more:  http://www.housingwire.com/2011/04/22/short-sales-and-foreclosures-equally-degrade-fico-scores


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Categories : Credit Reports, Defaults, Delinquencies, Financing, Foreclosures, Mortgage Industry, Short Sales, Underwriting

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