What the government will do when prime mortgages go foul
Posted on November 20, 2009 at 11:10 am
Analyst David Hendler of CreditSights sees more of what got us to today’s government-supported, not-really-healthy-at-all housing and banking sectors.
“[T]he prime residential mortgage crisis is probably going to require another massive government assistance program in that range of half a trillion [dollars] or more,” Hendler said. “And if this program is extended, it will lead to more bank regulatory restrictions with more capital and higher prudential liquidity levels. This would reduce the banks’ appetite and ability to take lending risks and put pressure on profitability.”
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Let’s compare our mortgage malaises, shall we?
Posted on at 9:19 amFrom the BERC’s latest Housing Brief:
Oh, by the way: The national numbers have gotten quite a bit worse in a rather short time.
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Rising, but it could be worse
Posted on November 9, 2009 at 11:25 am
First American CoreLogic has the latest set of regional delinquency and foreclosure numbers, which are still worsening — but at a slower pace than the state and national data sets. Click at left to see foreclosures by local ZIP codes and then check here to compare the September chart’s color to March’s.
SEE ALSO: Plenty more info from the CoreLogic crowd.
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Banks’ actions provide stability now, lower prices later
Posted on October 8, 2009 at 10:59 am
So says a housing market analyst in discussing the shadow inventory of homes, the massive number of troubled or foreclosed properties they will eventually have to bring back to market. The only solution? More D.C. help in stimulating demand.
“Without continued government intervention, home prices will plummet, banks and the GSEs will continue to lose money, and the economy has virtually no chance of increasing overall employment in 2010,” John Burns Real Estate said.
HT: HousingWire
More than $800K for local banks’ foreclosure, affordable housing work
Posted on September 25, 2009 at 1:02 pmThe Federal Home Loan Bank of Cincinnati has awarded a consortium of six banks and the Woodbine Community Organization more than $160,000 to help area homeowners avoid foreclosures. The wholesale bank also signed off on four grants that will help finance the creation of almost 50 affordable housing units in Davidson, Williamson and Wilson counties.
Last year’s grant helped more than 80 families avoid foreclosure. “The need has not dropped off,” said Cathie Dodd, Executive Director of Woodbine Community Organization. The first wave of homeowners seeking counseling had mortgages they were unable to handle financially, she said. Now, more homeowners have lost their jobs and fear losing their homes. “It’s not just low-income people. It’s happening to everybody,” Ms. Dodd said.
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No, the foreclosure numbers were not better
Posted on September 11, 2009 at 6:38 am
CNBC’s Diana Olick picks apart some media outlets’ very simplistic interpretation of August foreclosure statistics that needed a good bit of nuancing.
I’ve said it over and over. You can’t look at month to month price comparisons. You have to look year over year. When I see a year over year improvement, I’ll change my tune.
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Banks’ foreclosure juggling act
Posted on September 1, 2009 at 10:18 amMany of the bankers who have wrestled with a rising tide of foreclosures since last summer will soon begin to put large numbers of those properties back on the market. And that could come with a whole new round of problems for both the housing market and the banking sector.
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More REO woe for GreenBank
Posted on August 20, 2009 at 6:33 amGreen Bankshares has acquired a 675-home high-end development near Chattanooga in a forelcosure sale. GreenBank, which has struggled mightily with bad loans this year, had financed the project.
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Summers to banks: Time to scratch our back
Posted on July 21, 2009 at 7:40 am
Larry Summers, President Obama’s chief economic advisor, says not enough lenders are doing their part to help consumers and business ride out the recession.
“Prudent financial institutions will recognize that the profits they’re enjoying are in part a reflection of the commitment government and the broader society have made to the financial system that has enabled them to enjoy those profits,” Summers said in an interview with Bloomberg News yesterday in Washington.
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Newsflash: Loan mods stink
Posted on June 30, 2009 at 9:19 pm
More sobering news from the mortgage front: The OCC and OTS have released a report that chronicles the explosion in loan modifications early this year – up 55 percent from late 2008 – and gives us more evidence that those mods just don’t work well.
SEE ALSO: Our print edition cover story this week on foreclosures.
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In case you thought the worst had passed…
Posted on June 29, 2009 at 12:10 am
In this week’s Nashville Post print edition, Tom Wood takes a closer look at Davidson County’s foreclosure filings, which are spiking this month and seemingly putting to rest the idea that the housing market is gradually returning to something resembling health.
Another factor that a number of real estate and financial professionals cited is the possibility that an especially poorly underwritten batch of loans has met with an inevitable fate. As we all know by now, lenders got to be far too creative for their own good in the roaring middle years of this decade.
Suppose, hypothetically, that there was a fad among local mortgage brokers in the late winter of 2004 to sell 5/1 ARMs — adjustable-rate mortgages that begin with a five-year, interest-only term at a set rate, shifting after five years to an adjustable rate (usually higher) with required payment of principal along with the interest.
Early this year, those loans would have repriced. Borrowers who could not keep up would typically have faced foreclosure notices after 90 days in default.
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Lender pushes Rolling Mill Hill project into receivership
Posted on June 11, 2009 at 4:27 pmBank of America has sued over an outstanding construction loan of almost $11 million and wants to foreclose on the three-building project being developed conjunction with MDHA.
The development ran into problems because Direct was undercapitalized, without enough money to pay for expenses even after work was completed, says Walker Mathews, president of R.C. Mathews, general contractor for the project. He says the condos have great features, and construction was finished by April 14, as promised two years earlier.
“The unfortunate thing is we got all the way to the finish line, and it turns into a mess,” Mathews says.
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High-end foreclosures mean housing recovery won’t come till ‘12
Posted on May 21, 2009 at 12:22 pm
That’s the message market watchers are taking away from a Credit Suisse chart that compiles when various mortgage loans will be repriced. A key cog in the machine are ‘Alt-A’ and option ARM loans, says Matthew Padilla: “Subprime resets are still going on, but decreasing in frequency over the rest of 2009. However, prime resets and resets on loans to people with decent credit scores but special circumstances (stated income) are heading straight up through early 2012.”
Zacks’ Dirk van Dijk says that, “unlike sub-prime mortgages, these were for the most part targeted at more upscale homeowners. The next wave of foreclosures will be in gated communities, not on the “wrong side of the tracks.”
As foreclosures move more upscale, we may well see an increase in median existing home sale price. I’m sure this will be spun as good news of a housing bottom. Don’t believe it — it just means that the cancer is spreading.
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Area foreclosures by ZIP code
Posted on May 15, 2009 at 8:36 am
From First American CoreLogic comes a breakdown of the Nashville MSA’s foreclosure activity that suggests the region’s semi-rural areas are getting hid hardest. Also suffering are properties in North Nashville and down the 24 corridor. Click the map for a larger image.
The rate of foreclosures among outstanding mortgage loans is 0.70 percent for the month of March, an increase of 0.20 percentage points compared to March of 2008 when the rate was 0.50 percent. Foreclosure activity in Nashville-Davidson-Murfreesboro-Franklin is lower than the national foreclosure rate which was 2.10 percent for March 2009, representing a 1.40 percentage point difference.
Also in Nashville-Davidson-Murfreesboro-Franklin, the mortgage delinquency rate has increased. According to First American CoreLogic preview data for March 2009, 4.20 percent of mortgage loans were 90 days or more delinquent compared to 2.80 percent for the same period last year, representing an increase of 1.40 percentage points.
During the past 12 months, from April 2008 to March 2009, there was a total of 14,926 foreclosure filings in Nashville-Davidson-Murfreesboro-Franklin, or approximately 40.89 per day. That compares to the previous 12-month period of April 2007 to March 2008 when there were 11,053 foreclosure filings, or approximately 30.28 per day.
Visit realquest.com for more info.
April sets record for foreclosures
Posted on May 13, 2009 at 2:44 pmOne out of every 374 houses in U.S. Filed for foreclosure this April, according to information released today by RealtyTrac. Last month set the record for foreclosure numbers with 342,038 properties receiving default notices, going to auction or falling into bank repossession. This is an 1 percent increase compared to March, making April the highest foreclosure rate since the agency began tracking the figures in January 2005.
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