Posts about Mortgage Market Report as of July 14, 2009

MPs have said the government scheme to kick-start the UK mortgage market is not working. The Communities and Local Government (CLG) Committee said the £50bn asset-backed guarantee scheme (ABS) was “doomed to fail”. Further steps must be taken to boost mortgage lending if the housing market is to recover, it added. The government has said it was working hard to improve access to mortgages and protect jobs in the property sector.

A government scheme to revive the UK’s ailing mortgage market was “doomed to fail” from the beginning, ministers have said. The £50bn asset-backed guarantee scheme (ABS) has not resulted in the expected increase in sales, according to the Communities and Local Government (CLG) Committee. The committee added that further steps were needed to boost mortgage lending for the housing market to recover. Skills and jobs within the UK’s construction industry must also be protected, according to the committee’s report.

  I can tell that I am grown up because I get up at 4AM, not go to bed at 4AM, and I no longer consider a $4.00 bottle of wine “pretty good stuff”. The French, known for their wine, celebrate Bastille Day today. It is called Fête Nationale (National Holiday) in France and commemorates the 1790 Fête de la Fédération, held on the first anniversary of the storming of the Bastille: the Fête de la Fédération was seen as a symbol of the uprising of the modern French “nation,” and of the reconciliation of all the French inside the constitutional monarchy which preceded the First Republic, during the French Revolution.

Obama and the Democrat Congress must learn to put the country first before politics if they ever want the economy to recover, since everything they plan will only make the economy worse. The Dow has been tanking again, and new figures show the U.S. economy shedding jobs at an accelerating rate. What makes no sense is the approach adopted by the Democrats. In the middle of a crisis created by debt, the solution chosen is to run up the debt.

A storm of adjustable rate mortgage foreclosures could be on the horizon according to the Wall Street Journal. In April 36.9% of these loans are at least 60 days delinquent, which means a large number of foreclosures may soon strike the housing market. See the following post by Tim Iacono . The chart below was promptly whipped up after reading this report($) in today’s Wall Street Journal about just how fast Option-ARMs are souring as compared to subprime loans.

Every day seems to bring more news of ‘green shoots’ or ‘house price gloom’ and more conflicting data and predictions about property prices have hit the markets over the last couple of days. With so much information flying around, it’s important home buyers know the best expert to rely on for house price advice. A government study shows the house price decline has ground to a virtual halt. The Department for Communities and Local Government report based on mortgage completions only, showed property values in May were down 12.5% on a year earlier.

MP’s have stated that the  government scheme to kick-start the UK mortgage market is not working. The £50bn asset-backed guarantee scheme was  “doomed to fail”, according to the Communities and Local Government Committee. Greater steps must be taken to bolster mortgage lending if the housing market is to recover they added. The committee’s report also called for skills and capacity in the UK construction sector to be protected. It took ten years to rebuild capacity in the construction industry after the last recession, the committee warned.

Rick Santelli is sure to blow  a fuse today… While the man (almost) never pipes a word when hoards of money are funelled into GS, he always has to complain when the ordinary citizen gets his “bailout”. One more, one less bailout…  What does it change? Except here, the plan would amount to little more than… a Free Ride for all jobless mortgage owners (inasmuch you ever get a “free ride” when you’re jobless). In fact the plan purports to allow the affected houseowners to defer, defer or skip payments, effectively creating a premium for delinquent behavior.

Treasury Offers More Grants for Affordable Housing The government has been providing money for various programs aimed at halting blight and foreclosure, as well as creating affordable housing. One program, the Neighborhood Stabilization Program, recently saw money begin flowing. Another program, aimed at affordable housing projects in different states, has been issuing grants through the Treasury Department.

By William Tate Goldman Sachs, the Wall Street leviathan that is heavily invested in the cap-and-trade carbon market scam, has admitted it has developed and used software that can manipulate such financial markets. The revelation came during proceedings in a legal case with enough plot twists to make even John Grisham proud; it was made, not by Goldman, but by an assistant U.S. Attorney.

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You work hard. You stick to your budget, and you always pay your bills on time. Now that you are in the market for a new car, you are confident that you’ll have no problem getting a great deal on the financing. But don’t be too sure. Did you know that 3 out of 4 credit reports contain errors? Those mistakes can tarnish your credit report and negative affect your score. With those odds, heading to the dealership without checking your credit report is taking a big gamble that could end up costing you.

Bad credit loans are those used for paying off mortgages that have interest rates that are just too high and want to refinance. They can be used for home equity loans, personal loans, payday loans, and even home improvement loans. They for computer financing are available to people with bad credit to purchase home computers, laptops, desktops, and other computer requirement. Even with bad credit, computer financing with a bad credit loan is a definite possibility.

FTSE 100 4202.13, +74.96 Dow 8331.68, +185.16 FTSE 250 7278.80, +94.37 Nasdaq 1793.21, +37.18 FTSE All Share 2145.48, +36.16 S&P 500 901.05, +21.92 Nikkei 9261.81, +211.48 Hang Seng 17884.88, +630.25 Oil (Crude) $59.69 Gold $922.50 Base Rate 0.5% 10 Yr Gilt 3.72% £/$ 1.629 £/€ 1.1655 1 month LIBOR 0.6 3 month LIBOR 1.021 MarketsLondon – The FTSE 100 is currently 25.95 points higher at 4,228.11. Higher metal prices boost miners.

These days, may people have poor credit. With the explosion of cheap and easy credit, more people have been landed with a poor credit rating. This has led to the phenomenon of the sub-prime mortgage. However, simply because you have an adverse credit history does not guarantee that you will qualify for an adverse credit mortgage. The reason for this is the lender must first weigh the risks a particular applicant poses and then make a decision to approve the application or not.

Bank of the Ozarks is one of the banks I followed. It is a very small region bank comparing to Bank of America. You may read Bank of Ozarks business profile here if interested . I have long believe that Bank of Ozarks is one of the well managed banks that is financial is much healthier than its bigger peers. Bank of the Ozarks reported earning today. So lets see if that believe still holds and see if we can get some hint about the earning of Bank of America from Bank of the Ozarks.

Often times I will get inquiries about how to market clients that are late on their mortgage, but have not received an formal NOD. The main issue is NOD lists tend to have a low conversion rate. Nearly all of the time low conversion rates are ascribed to the data becoming public at a particular point. In which case the market gets overloaded with telemarketing, direct marketing and flyers. Some Other reason is that most of the time the borrower is so far along in the foreclosure process they are already nearly moved out and have forfeited on redeeming their house or credit.

I receive calls each day from Realtors that inquire how they can get in contact with clients that are presently 30,60,90 days late on their note and have not received a Notice of Default yet. Their essential interest is that the NOD lists that they are using for selling are not closing well for them. Most of the time low closing ratios are attributed to the information going public at a particular period. In which event the market gets inundated with telephone calls, mail and fliers.

Reuters By Patrick Rucker and David Lawder NEW YORK/WASHINGTON (Reuters) – President Barack Obama is mulling new ways to delay foreclosure for jobless homeowners who are unable to keep up with monthly payments, an administration official said on Monday. The official told Reuters it was reasonable for policymakers to consider options for loan forbearance — allowing borrowers to delay, defer or skip payments — that are more effective than those currently available in the private sector.

The latest property market survey from the Royal Institution of Chartered Surveyors suggested that new buyer enquiries increased at the fastest pace since records began a decade ago. The strongest increases were in the North and London, followed by the East and West Midlands. It comes as the average number of properties on estate agents books dropped from 58.5 in May to 56.9 in June, 32 per cent lower than a year ago.

Mortgage Backed Securities slipped roughly .25bp (FNMA 30 YR 4.5%) today which translates into 1/8 decline in Consumer July 2009 Mortgage Rates . The small movement can be attributed the triple digit move in the DOW thanks to Financials. This week, rates should be in flux with traders watching 3 things. The first is Earnings Season reports. Big Banks JP Morgan Chase, Bank of America and Citigroup report quarterly earnings this week .  If balance sheets look healthy and markets are encouraged by the results, it could spark a stock market surge, similar to last quarter.  This would be bad for mortgage rates.

I receive calls every day from Realtors that inquire how they can get in contact with clients that are currently 30-60-90 days late on their note and have not received a Notice of Default yet. Their main interest is that the NOD lists that they are using for selling are not closing advantageously for them. Most of the time terrible conversion ratios are attributed to the data becoming public at a particular point. In which event the market gets stuffed with telemarketing, direct mail and fliers.

[ In yesterday's post , Phil gave us some background on his situation and his portfolio. Today, he talks about how current holdings are split between his and his wife's registered and taxable accounts. ] Our Portfolio Our portfolio is comprised of six different accounts. I’ve listed our target weight and the actual market weight of each security as of June 15/09. Phil’s RSP Below are the holdings of my RSP, with target weights and actual weights (both expressed in terms of the overall value of the account, not the portfolio as a whole).

Perhaps one of the greatest challenges of looking for UK loans is not how much you can get or the ways to get one. It’s about where to exactly search for them. Though there are a lot of lending companies these days that are offering personal loans, not all of them can be suitable to your needs, trustworthy, or can provide a wide range of products and services. Choosing Cooperative Bank You can get secure loans right at Cooperative Bank. This is an affiliate of CFS, or Cooperative Financial Services.

Mortgage fraud soars as desperate homeowners and lenders try to maintain the standard of living enjoyed in boom times, says FBI; USA Today probe looks at ethics of overdraft loans; Bernard Madoff won’t appeal, making it a virtual certainly he will die in prison NEW YORK and WASHINGTON Financial-sector ethics were key to several top developments last week. Among them: Mortgage fraud has skyrocketed as desperate homeowners and industry professionals try to maintain the trappings of boom years, according to a report from the Reuters news agency.

A government scheme to kick-start the UK mortgage market is not working, MPs have said. The £50bn asset-backed guarantee scheme (ABS) was “doomed to fail”, according to the Communities and Local Government (CLG) Committee. Further steps must be taken to boost mortgage lending if the housing market is to recover, it added. The committee’s report [...]

Tougher Bankruptcy Laws Take Effect October 2005 In just a few short weeks, President Bush?s Bankruptcy Abuse Prevention and Consumer Protection Act will take effect. In a nutshell, the new law, which goes into effect on October 17, 2005, makes it more difficult to cancel your debts under Chapter 7 Bankruptcy protection. Instead, consumers will find themselves having to file for Chapter 13 Bankruptcy protection and paying back their creditors over a five year period.

The Twin Cities housing market experienced its annual pre-Independence Day drop in activity as fireworks, barbeques and lake cabin excursions preoccupied the minds and schedules of many Twin Citizens. New listings took a steep dive prior to the holiday, dropping to 1,482 for the week ending July 4. This is an 8.3 percent decrease from the same week in 2008. Pending sales also dropped to 989 for the week ending July 4. Fortunately, this stat is still a healthy 34.6 percent above where it was last year, when there were just 735 pending sales reported.

Lower Credit Score = Higher Interest Someone with a low credit score will pay more interest on a loan than somebody with a good credit score, and that’s reasonable and fair because the person with the low rating is more likely to default on the loan and vice versa. The difference in the cost of a loan would most likely be much more than you’d imagine, and to give you a quick example let’s imagine two people taking out a 30 year mortgage of $180,000.

When the housing market is hot, it is not uncommon to see potential home owners thinking about getting a 50-year mortgage to lower the cost of mortgage payments. Like any new style of doing something, there are those who swear by it and those who do not. However, when looking at mortgages, how long is too long? Generally, 25 years is the standard rate for a mortgage as it gives relatively low interest rates, while at the same time not cementing the homeowners into a long mortgage that they may not be able to get out of.

***Smart Financial Weekly Mortgage Update July 10, 2009***Interest RatesRates were down sharply mid week as the stock market weakened and demand for 10 Year Treasuries was higher than expected with some of our sources offering 30 year fixed rates just below 5.00%! In spite of an upward adjustment Thursday rates were back to just below 5.00% Friday. The head of Interest Rate Strategy for Morgan Stanley said this week that he expects the 10 Year Treasury Yield to “grind” lower by late September then finish the year at about 4.25%.

RISMEDIA, July 13, 2009-Most Americans still consider having enough money for downpayment and closing costs to be the biggest obstacles to buying a home. That’s according to the 2009 National Housing Pulse Survey, an annual survey released today by the National Association of Realtors®. The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in seven years of sampling.

Foster Weeks publishes a weekly mortgage report which is updated every Monday morning. How is this affecting the San Francisco real estate market? Read our weekly and monthly market reports. Here’s what Mr. Weeks says about last week’s activity: “EVERY DARK CLOUD HAS A SILVER LINING…BUT LIGHTNING KILLS HUNDREDS OF PEOPLE EACH YEAR WHO ARE TRYING TO FIND IT.” Larry Kersten .

MMRecap for July 13 U.S. Treasuries turned in a good performance last week, with the yield on the benchmark 10-year note, which moves inversely to price, hitting a seven-week low on Wednesday and going even lower on Friday.  Mortgage rates, which follow the 10-year yield, also moved lower. Buying in Treasuries stemmed largely from weakness on Wall Street, which may have gotten ahead of itself in terms of thinking economic recovery was around the corner.

Office of the Comptroller of the Currency and the Office of Thrift Supervision released their quarterly report on first lien mortgage performance for 2008 Q1. The report covers approximately two-thirds of all outstanding mortgages. The joint report broke the loan mod results into four categories: 1. Reduced monthly payments by more than 10% 2. Reduced monthly payments by 10 percent or less 3.

SOMETHING FOR THE WANNA HAVES & THE HAVES-ALMOST, KIND OF… Nick Hetherington The persona for this blog as you may have noticed is split into two categories. ‘Something For The Haves’ and ‘Something For The Wanna Haves’. There can be a great deal of synergy between the two especially in a market where everybody is making money and benefits from each others trade-able product. But in this type of market the relationship is a little more opaque.

When you read the newspaper or watch TV, you hear reporters quoting the median home price in San Mateo County. Often, when this number is large, like it is in San Mateo County, people think they can’t afford to buy a home. The fact is the median price is simply the middle sales price of the homes that actually sold. What is the Median Price in San Mateo County? Let’s say three homes sold last month. One sold for $180,000, one for $550,000 and one for $1,200,000.

“The Return of Senator Moondoggie” Edition “Like, tax cuts, Daddy-O” This Sunday marked the 733,285th time 2008 Republican standard bearer Senator John McSame showed up on “Meet the Press” , this time treading the boards to beg forgiveness of the Pig People who now completely own his party by touting two of the GOP’s signal failures – recession tax cuts and Sarah Palin – as wildly brilliant national salvifics that we po’ dumb Liberals were just too hateful and Socialistic-y to embrace.

With the private mortgage market remaining tight, home loans backed by Uncle Sam have become increasingly essential to the housing market. And in a release issued last week, the Mortgage Bankers Association detailed just how essential such support … View original story…