Posts about Mortgage Market Report as of July 9, 2009

Fed Starting to Lend Mortgage Agency Debt Starting today, the Federal Reserve will make available to lend the debt it owns that was issued by mortgage agencies Fannie Mae ( FNM ), Freddie Mae ( FRE ) and the Federal Home Loan Bank system owns. The Fed’s agency securities are held in its Open Market Account, which has been comprised of the various debt issues the Fed has acquired as part of monetary policy activity.

Idiocracy in action: Congress blocks bill to audit the Fed… No surprise: American loan defaults hit record… Surprise: Could Canadians be next? China takes another “World’s No. 1” from U.S. …  Dan Denning , Byron King on recent triumph and tragedy in the oil patch… Great news: The Federal Reserve will retain its right to operate in secrecy. “Thank God for Rule 16!” Late yesterday, the Senate majority put the kibosh on a last-hour provision in the 2010 spending bill that would audit the Fed.

Frequently I will get inquiries about how to market borrowers that are past on their note, but have not incurred an formal Notice of Default. Their main concern is that the NOD lists that they are using for selling are not converting advantageously for them. Nearly all of the time poor closing ratios are attributed to the data going public at a certain period. In which case the market becomes stuffed with telephone calls, mail and circulars.

Mortgage rates improved, this first week of July, from a horrible June.  If you followed the drama last month, fears of defaults and inflation ticked off a rise in mortgage rates of up to 6.0%.  As brutal as June, 2009 was, July is giving us back most of what we lost last month.  Still, I’m locking loans at application ( listen to my two-minute report ) because I’ve changed my bias to locking rather than floating .

Mortgage rates are lower by about .125% this morning after mortgage-backed bonds rallied yesterday afternoon.  In the last month mortgage rates have now decreased by approximately .75%. Yesterday after the close of the stock market aluminum maker Alcoa (AA) kicked off the 2nd quarter earnings season .  As expected their current earnings were soft.  But, they were not as soft as some analysts had expected.  Over the course of the next couple weeks mortgage rates will likely take lead from the stock market.  Click this link to read how the stock market impacts mortgage rates.

By LOUIS UCHITELLE Look around you, George A. Akerlof and Robert J. Shiller say. The second coming of the Great Depression is, like the original, a direct result of animal spirits. If only we had factored those turbulent emotions into economic theory, we might not be repeating the earlier tragedy. Akerlof, a Nobel laureate, and Shiller, a good bet to become one, are prominent mainstream economists.

The government-insured share of mortgage applications rose to its highest point since 1990, according to a new report from the MBA. FHA and VA loans accounted for a whopping 35.9 percent of mortgage applications in June, up from 25.7 percent in May and 27 percent a year ago. The lowest recorded share was just 5.8 percent in [...]

“One hundred days ago, in the midst of the worst economic crisis in half a century, we passed the most sweeping economic recovery act in history – a plan designed to save jobs, create new ones, and put money in people’s pockets,” Barack Hussein Obama said.”Now, one hundred days later, we are meeting our economic challenges head-on and beginning to see early signs of progress across the country.” The above quote was May 27, 2009 in a White House press release .

A report released by the PMI Group Inc, stated that more than 50 percent of U.S. metropolitan areas will experience a drop in home prices until the first quarter of 2011. The Walnut Creek, California-based mortgage insurer said that the rising unemployment rate and the growing number of repossessed home are the major factors that will put pressure on home prices. According to the report, 30 out of the 50 cities have a 75 percent possibility of experiencing lower home prices until the end of March 2011.

For many people franchising is the way to go and they have  made their money, but it always comes with its own risk and is not everyone’s cup of tea Market estimates you’ll need between $10,000 and $50,000 to start a business from scratch , but franchises can cost a lot more. The cost of setting up a greenfield site of a national franchise is eye-watering. For example, you would need up to $2 million in capital investment to open a new McDonalds in australia , plus pay the $60,000 franchise fee .

Fitch Ratings this week said it expects 2006 through 2008 vintages of commercial mortgage-backed securities (CMBS) to “substantially underperform” earlier vintages. These vintages are vulnerable to significant performance issues, given their origination at peak market conditions and weaker underwriting standards, the rating agency said in a report this week. The news arrives as the latest indication [...]

Most of you know that I’m stuck in Mississippi… …trying to build a house out of reclaimed and recycled materials, to shelter my family. And, I’d like to do it, before “hurricane season” crashes down on us, once again. But… the politicians are standing between me, and my dream. It’s not like it’s impossible to do… It’s just impossible to “legislate.” OY. And, while I’m doing this “running around in circles so I don’t just stop, take a deep breath, and go absolutely freakin postal in Jackson” thing… I’m helping some pals build THEIR Shipping Container homes.

The recent passage of the American Clean Energy & Security Act (ACES) through the U.S. House of Representatives drew different reactions from climate and environmental advocates. But one key perspective shared by most advocates is that, despite its weaknesses, the bill is a good first step. ACES builds a solid foundation for future progress on U.S. climate mitigation, the argument goes, and climate advocates will be well-positioned to strengthen the legislation in years ahead.

Despite tentative signs of a recovery  in UK house prices the UK mortgage Market looks to be weak. The price comparison website moneysupermarket.com said that the number of mortgage deals on offer to first time buyers continues to remain very low at just over 1,000. Two of Britain’s biggest house builders have stated that the lack of mortgages presents a major obstacle to recovery.  Given the general gloom over mortgage deals on offer, it was rather a surprise to see Nationwide offer a return of a 125% mortgage for those homeowners struggling with negative equity.

Despite tentative signs of a recovery  in UK house prices the UK mortgage Market looks to be weak. The price comparison website moneysupermarket.com said that the number of mortgage deals on offer to first time buyers continues to remain very low at just over 1,000. Two of Britain’s biggest house builders have stated that the lack of mortgages presents a major obstacle to recovery.  Given the general gloom over mortgage deals on offer, it was rather a surprise to see Nationwide offer a return of a 125% mortgage for those homeowners struggling with negative equity.

Gov. David A. Paterson named Richard Ravitch, a Democratic lawyer with a career in government dating back a half century, as the state’s lieutenant governor on Wednesday.Mr. Paterson said Mr. Ravitch, 76, would bring stability to the capital and help him end what he called the “crisis in governance” that for more than a month has paralyzed the Senate during its 31-to-31 split. The governor wants Mr. Ravitch to preside over the Senate, cast tie-breaking votes on leadership and other procedural votes and succeed him should Mr.

Wednesday, July 08, 2009 By Fred Lucas, Staff Writer Washington (CNSNews.com) – Fannie Mae and Freddie Mac were the chief culprits in the housing crisis because they encouraged people who could not afford payments to borrow money, according to a congressional report released Tuesday. The claims in the report have long been advanced by conservatives, who argue that the Community Reinvestment Act and other federal programs fed the housing bubble that burst in 2007 and led to the economic downfall in 2008.

Morning Market Radar Snapshot | Focus |  Calendar |  Earnings |  Speeches | Events Yesterday’s Snapshot The loss was mild, only 0.2 percent on the S&P 500, but stocks were once again on the defensive yesterday awaiting today’s jobless claims and chain-store data as well as the roll out of second-quarter earnings.

Frequently I will get inquiries about how to market clients that are past on their deed, but have not incurred an official Notice of Default. Their main concern is that the NOD lists that they are using for selling are not converting well for them. The reason those listings tend not to close well is because once the client information becomes public they are stuffed with telephone calls and direct mail. The next greatest matter is that many times once an NOD has been issued, the borrower might have already vacated the property.

By Jacob Greber July 9 (Bloomberg) — Australian employment fell in June, pushing the jobless rate to the highest in almost six years, as the global recession reduced demand for iron ore and coal exports and prompted mining companies to fire workers. The number of people employed dropped 21,400 from May, the statistics bureau said in Sydney today.

Dear CIGAs, A sense of humour on a gift table. What a relief in this Matrix virtual world we live in. That was good for a laugh this morning here in cold Joberg. Imaginary currency is already here. It is called the dollar. The real currency of the NOW and the future is in the hands of the people and it is called Gold. Meanwhile COT is throwing all caution to the wind to get you to panic. Some will. Some have. Both will regret that emotional response to Pavlov who along with Geobell invented MOPE’s foundations.

A federal jury ordered Jammie Thomas-Rasset to pay a $1.92 million fine for allegedly downloading 24 songs (Case number 0:2006cv01497, Virgin Records America, Inc v. Thomas). In a surprisingly harsh verdict, the Minnesota woman was fined $80,000 for each song she downloaded through the Kazaa peer-to-peer file sharing network. A Gray Area Research market analysis available from STIX Market Research discusses the issues that lead up to the decision.

Originally published in the September 4th 2007 edition of the Financial Post section of the National Post.Our report on June 11th noted that gold and gold stocks were preparing for a seasonal entry point. Lots of changes have occurred in gold and gold markets since that report was written. Where are these markets going now?Seasonal InfluencesThe period of seasonal strength for gold and gold stocks is from the end of July to the end of September. The seasonal trade for gold has been profitable in eight of the past 10 periods.

Author : Michael challiner A recent poll claims that two out of five middle-class professionals are scared they will struggle to keep up the repayments on their mortgage in 2009 High earners represent those most worried that they will default on payments The findings pinpoint how the economic downturn has affected the City, retailers and manufacturing and is now forecast increasingly to hit other professions such as marketing and advertising agencies, law and accountancy, and public relations

Filed under: Housing , Recession , Financial Crisis According to a report released yesterday, U.S. mortgage fraud reports increased 36% last year . According to the FBI, suspicious activity reports increased to 63,713 during fiscal 2008 from 46,717 a year ago. California and Florida had the highest number of suspicious reports, which some attribute to the fact that the housing market has dropped and credit has dried up in those regions.

IEA’s G8 Programme – Aiming at a Clean, Clever and Competitive Energy Future Following up on its participation in G8 events during the past four years, the IEA has been invited by the Italian G8 Presidency to take part in the G8 Environment Ministers meeting in April, the G8 Energy Ministers meeting in May and the G8 Summit in July.  See the official Italian G8 web site: http://www.g8italia2009.it for more details.

CNSNews.com Federal Government Was Culprit in Housing and Economic Crisis, Says Congressional Report Wednesday, July 08, 2009 By Fred Lucas, Staff Writer CLICK HERE TO SEE THE ACTUAL REPORT Washington (CNSNews.com) – Fannie Mae and Freddie Mac were the chief culprits in the housing crisis because they encouraged people who could not afford payments to borrow money, according to a congressional report released Tuesday.

Powered by Max Banner Adsby John SlidengerGreat credit is key to getting good loans. In this market where lending is tight and money isn’t freely flowing, the only way to get someone to lend you money is with good credit. Here are a few ways to achieve this.Believe it or not, credit monitoring services are actually a good way to make sure your credit stays high. There is usually a charge for it, but these companies will check your credit, and if it changes, send you an email about it so you can deal with it if it’s not an authorized use.Every year, you can get one credit report from each agency (there are three total).

News about house prices come every month from various sources and all slightly vary. Here we look at who says what and why. Let’s start with Nationwide and Halifax. Both provide mortgages and their house price figures are based on their mortgage approvals, not on completed sales (remortgages and further advances are excluded). Their data includes property from the whole UK market but each is based only on the mortgages passed through their companies, a much smaller sample compared to the Land Registry.

Property is organised robbery. – George Bernard Shaw In 1943, American psychologist Abraham Maslow published his theory of the hierarchy of human needs. At the bottom of this pyramid-shaped pecking order were our physiological (i.e. most basic) requirements, including the need for shelter. Now, while it would be excessively facile to consider the need for residential property as merely being the provision of a roof over someone’s head, it is reasonable to view housing as also being central to the preservation of our private lives and the protection of our families’ well-being.

Republican staffers on the Committee on Oversight and Government Reform (Darrell Issa (CA-49), Ranking Member) have penned a lengthy report on The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008 . Despite the inevitable partisan tendentiousness — no mention of George W. Bush’s White House Conference on Increasing Minority Homeownership, too much blame on Fannie and Freddie, not enough blame on businesses and deregulation — it turns out to be better than you’d expect.

Foreclosure has hit an all time high and is quite prevalent. In fact on an average, the foreclosure rates including the rates for Minnesota foreclosure homes has increased in the first quarter of this year by as much as 10% of the last quarter of 2007. Though Minnesota has been placed at number 29 as far as foreclosure is concerned. Foreclosure is the process whereby the lender will take the ownership of the property. Therefore for Minnesota foreclosed homes, lenders will take repossession of the property.

Michael Saunders & Company FOR SELLERS, IT’S “PRICE”If you must sell your home in today’s buyer-friendly market, the key word that should most inform your thinking is “price.”   Even with sales perking-up considerably over the past few months, price remains every buyer’s top priority.  With the sheer number of available properties continuing to significantly outstrip demand, if a home is not priced in line with—or below—similar properties that have sold in the last 60 days, its chances of selling

Frequently I will get inquiries about how to market clients that are late on their note, but have not incurred an official Notice of Default. Their essential interest is that the Lis Pendens lists that they are using for selling are not converting well for them. The cause those listings tend not to close advantageously is because once the client info becomes public they are stuffed with phone calls and mail. The next largest matter is that many times once an Notice of Default has been announced, the client may have already vacated the property.

“Is it possible to jump from a 520 to a 620 in 3-5 months? I want to buy a house…” This is a question I’m seeing more and more of lately and they are starting to give me a flash back to 2006. Rolling Stone has a top songs of the year l ist and in 2006 it was “Crazy” by Gnarls Barkley. Very appropriate as this is when the sub-prime market started to unravel. In July 2009, people are scrambling to take advantage of low house prices – down 20-30% – in some areas, and low interest rates.

by Addison Wiggin & Ian Mathias Idiocracy in action: Congress blocks bill to audit the Fed No surprise: American loan defaults hit record… Surprise: Could Canadians be next? China takes another “World’s No. 1” from U.S. Dan Denning, Byron King on recent triumph and tragedy in the oil patch     Great news: The Federal Reserve will retain its right to operate in secrecy.  “Thank God for Rule 16!”  Late yesterday, the Senate majority put the kibosh on a last-hour provision in the 2010 spending bill that would audit the Fed.

The Grand Old Party is having a Grand Old Time blasting the Democrats for June’s uptick in unemployment. Rep. Eric Cantor (R-Va.) said the newest figures are indication that Democratic leaders should have heeded Republicans earlier this year and dedicated much more of their $787 billion stimulus bill to tax cuts. Sen. John Cornyn (R-Texas) told The Washington Post this week that the new jobless numbers foreshadow “significant problems” for the Democrats in next year’s midterm elections.

http://republicans.oversight.house.gov/media/pdfs/20090707HousingCrisisReport.pdfThe Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008STAFF REPORT U.S. HOUSE OF REPRESENTATIVES 111TH CONGRESS COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM JULY 7, 2009INTRODUCTIONThe housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market intended to help provide homeownership opportunities for more Americans.

In the recent foreclosure news , JPMorgan Chase & Co announced that the U.S. home foreclosures are expected to reach a total of 6.4 million by the end of 2010 until the middle of 2011. This figure would approximately be 2.5 million less if the mortgages were not being reworked to help the borrowers. Regulators and lenders are exerting efforts to the current mortgage terms modified and adjusted to stop the record foreclosures from harming the housing markets, the banks, and the consumers.

Full story here at DailyKos. This is a geeky post which us programmer-types live for. Though harder to follow for the non-techie, you should still give it a shot. “If ya ain’t cheatin’, ya ain’t tryin’.” Apparently, Goldman Sachs has been booted out from doing computerized quant trades at the New York Stock Exchange. – GS had been making $100,000,000 a day with computerized trades. [ed. – on a 300 trading day year, that comes out to $30 billion.

Shocking!  Just Shocking!  Who would have thunk it? Well…  Besides us low-life bloggers… Cong. Report Says Government Caused Financial Crisis by   Connie Hair – humanevents.com 07/08/2009 In a stunning report (pdf) released yesterday by the House Committee on Oversight and Government Reform, the current financial crisis was traced back to government intervention in the U.S. housing market. Yes, you read that right.

Falling home prices any be moderating, but they are not likely to be heading higher anytime soon. That’s according to mortgage insurer PMI Group ((PMI) .One of the the largest mortgage insurers in the US, PMI is forecasting that home prices will be lower in 2011 than they are today, including 30 of the 50 largest metro areas.  The decline is likely to spread to “all regions of the nation” from California, Florida, Nevada and Arizona, the states most affected by the housing slump.This line really

Ian Webber The Credit Bureaus Many people starting a credit repair program are under the misconception that the credit bureaus are in some way connected to the government. It is easy to understand this perception. But, as influential as they are, the credit bureaus have no government blessing, charter, or otherwise. They are big business. There are three credit bureaus that count. They are Experian, Equifax, and TransUnion. They are in the business of gathering credit data about you and selling it to potential creditors.

By Teryn Norris Originally published by AlterNet July 8, 2009 The recent passage of the American Clean Energy & Security Act (ACES) through the U.S. House of Representatives drew different reactions from climate and environmental advocates. But one key perspective shared by most advocates is that, despite its weaknesses, the bill is a good first step. ACES builds a solid foundation for future progress on U.S. climate mitigation, the argument goes, and climate advocates will be well-positioned to strengthen the legislation in years ahead.

by Connie Hair 07/08/2009 In a stunning report released yesterday by the House Committee on Oversight and Government Reform, the current financial crisis was traced back to government intervention in the U.S. housing market. Yes, you read that right. The report issued by the Republican minority didn’t disclose the names of the culprit individuals, but it sure pointed a lot of fingers at organizations, politicians, lobbyists and Fannie Mae/Freddie Mac.