-
Barack Obama's Mortgage Modification Plan: Attacking Second Liens
Tweet Share on Facebook April 29, 2009 Comment (40)While Barack Obama's plan to rescue homeowners--originally released in mid February--included a comprehensive initiative to lower monthly mortgage payments, it failed to address in detail a related issue that threatens to undo troubled borrowers: second liens.
[See Obama's Loan Modification Plan: 7 Things You Need to Know]
During the housing boom, millions of Americans took out second mortgages--such as home-equity loans--enabling them to buy property without having to come up with much down payment cash, or simply to pay for other things. Today, the government estimates that as many as half of "at-risk" mortgages have second liens as well.
-
Mortgage 'Cram Down' Effort Stalls in Senate
Tweet Share on Facebook April 28, 2009 Comment (45)The effort to enact mortgage "cram downs" appears to be stonewalled--at least for now--in the Senate, according to The Wall Street Journal:
Legislation to give bankruptcy judges the power to reduce home mortgage debt–by “cramming down” the principal–doesn’t appear to have enough votes and will be stripped out of a broader housing bill in the Senate.
The cram-down effort is a major plank of President Barack Obama’s housing rescue, which also offers financial incentives to mortgage servicers to modify loans and allows some homeowners with little to no equity to refinance.
-
Home Ownership Rate Drops (Again)
Tweet Share on Facebook April 27, 2009 Comment (3) -
Bank of America Retires Countrywide Brand Name
Tweet Share on Facebook April 27, 2009 Comment (9)Is is Countrywho or Countrywhom? (I never know.) From B of A:
The Bank of America Home Loans brand represents the combined operations of Bank of America's mortgage and home equity business and Countrywide Home Loans, which Bank of America acquired on July 1, 2008. The Countrywide brand has been retired.
-
'Stress Test' Home Price Scenarios
Tweet Share on Facebook April 24, 2009 Comment (1)The Fed on Friday released additional details of the "stress test" that regulators are using to determine whether or not the nation's largest banks have sufficient capital to handle the coming economic hardships. In constructing the test, regulators made forward-looking assumptions about key macroeconomic trends--unemployment, GDP, home prices--that would influence bank performance in 2009 and 2010. These assumptions were divided into a baseline and a more adverse scenario. Banks found to be lacking sufficient capital will be required to raise more cash through private investors or from Uncle Sam. Although regulators aren't expected to make the results public until May 4, the Fed said Friday that "most U.S. banking organizations currently have capital levels well in excess of the amounts required to be well capitalized."
Here's a look at the projections for home prices that regulators used in the "stress test."
-
Mortgage Rates Slip to 4.80%
Tweet Share on Facebook April 24, 2009 Comment (2)Freddie Mac's most recent mortgage market survey shows that 30-year, fixed mortgage rates slipped to 4.80 percent this week.
-
New Home Sales Drop in March
Tweet Share on Facebook April 24, 2009 CommentMarch new home sales dipped about 1 percent from February and nearly 31 percent from a year earlier, the government said Friday.
From the Census Bureau, via The Big Picture:
-
The Top 25 Foreclosure Cities
Tweet Share on Facebook April 23, 2009 Comment (3)From RealtyTrac:
RealtyTrac… the leading online marketplace for foreclosure properties, today released its Metropolitan Foreclosure Market Report for Q1 2009, which shows cities in California, Florida, Nevada and Arizona accounted for the 26 highest foreclosure rates in the first quarter among metro areas with a population of 200,000 or more.
-
Are Home Sales Stabilizing? 5 Things You Need to Know
Tweet Share on Facebook April 23, 2009 Comment (1)After existing home sales demonstrated surprising strength in February, fingers were crossed for another increase last month. But when the National Association of Realtors released the March sales data Thursday, housing market optimists got their hearts broken--again--as the figures came in weaker than expected.
March existing home sales slipped 3 percent from the previous month and 7 percent from a year earlier. Meanwhile, the median home price fell 12 percent from March of 2008--to $175,200--but actually increased 4 percent from the previous month.
Here are five things you need to know about the March existing home sales report:
-
Bailed-Out Companies Spending Millions on Political Lobbying
Tweet Share on Facebook April 22, 2009 Comment (1)It seems that some of the biggest beneficiaries of government bailout cash have been spending big bucks to shape legislation in recent months.
From The Washington Post:
The biggest spenders among major firms in the group included General Motors, which spent nearly $1 million a month on lobbying, and Citigroup and J.P. Morgan Chase, which together spent more than $2.5 million in their efforts to sway lawmakers and Obama administration officials on a wide range of financial issues. In all, major bailout recipients have spent more than $22 million on lobbying in the six months since the government began doling out rescue funds, Senate disclosure records show.
