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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Local firm in on Birmingham apartments acquisition
Posted on November 19, 2009 at 10:50 am
Low-profile investment firm Carter-Haston has partnered with an Ohio company to acquire a 414-unit apartment complex on the south side of Birmingham. The two companies paid Colonial Properties Trust almost $25 million for the 15-year-old property.
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The housing market question with no easy answer
Posted on November 16, 2009 at 7:26 amBarry Ritholtz asks it:
If stabilization comes only through government subsidies and artificially propped up home prices, is it truly stabilization?
You could ask similar questions of the auto industry and a few other sectors of today’s economy. The folks who months ago said we ought to bite the bullet in housing and banking in order to more quickly begin an authentic recovery — albeit from a slightly deeper hole — are looking wiser with every passing day.
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At the FHA, it’s a case of ‘On the one hand…’
Posted on November 13, 2009 at 7:18 amThe bad news: The reserves at the Federal Housing Administration, which insures lenders against mortgage losses, are running below their mandated levels.
The encouraging news: More recent mortgages under the FHA umbrella are showing dramatically lower delinquency rates.
FHA’s recent books-of-business continue to experience elevated levels of stress due to house price declines, income loss and climbing unemployment, according to HUD’s report. For example, the ‘08 year of single-family insurance — representing 15.7% of total insurance — saw a 12.13% seriously delinquent rate as of the latest actuarial study. But the ‘07 year of insurance — representing only 5.7% of total insurance — saw an 18.53% serious delinquency rate.
The ‘09 year of insurance performed relatively well as of the most recent data, experiencing only 1.6% serious delinquencies although the loans insured in fiscal year 2009 account for more than 31% of all loans insured by FHA.
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Mortgage market rises closer to the surface
Posted on November 10, 2009 at 10:19 amMarket watcher Zillow says slightly fewer mortgages were underwater last quarter and that home values in the 150-plus cities it tracks stabilized. The tax credit will help get housing through the winter, Zillow’s economist says, but the question is whether the thaw will show us a market that finally is ready again to stand on its own.
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Home builder agrees to EPA settlement
Posted on at 8:36 amAfter being charged with Clean Water Act violations, John Wieland Homes will pay $350,000 and implement a far-reaching stormwater management plan at its construction sites. The EPA says its deal with John Wieland will keep 37 million pounds of sediment per year out of various waterways.
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Williamson County: Where the tax credit draws in lower-priced homebuyers
Posted on at 7:44 am
The first question that came to my mind after seeing the positive Nashville-area home sales headline number yesterday was, “OK, but how much did prices drop?” Turns out they fell by a smaller amount than they have for most of the year.
At least on the MSA level. Data from the Williamson County Association of Realtors shows a sharp drop in the pricier county’s median home price since the spring. In the first half of this year, that number was at $357,500 or above all but one month. In the past three months, it has averaged $307,000.
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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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GNAR on tax credit extension
Posted on at 9:40 amHmm, the Realtors like it. Says Mike Nichols:
For homebuyers, it creates the opportunity to seriously consider purchasing a home based on the fact that this significant help is available. It is even better news that the program is now being made available at the reduced rate of $6,500 to repeat buyers who have owned their home for 5 years.
For the economy, it is especially meaningful. Much has been said about the housing market helping lead the way out of the current economic recession. Clearly, when people purchase homes, they often purchase other items to help furnish, equip and decorate their homes, so the impact is felt well beyond those directly involved in the actual home purchase transaction.
This is also very good news for Tennessee, as it was noted recently that this state is among the top users of the tax credit to date.
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No distressed assets in this Habitat
Posted on at 7:42 amThe Nashville Area Habitat for Humanity says all of its borrowers — who make less than $30,000 per year – were current on their mortgages in September. The organization says a big part of the credit should go to its education programs.
HomeWORKS trainers prepare partner families for homeownership through a series of courses designed to teach new skills and encourage new habits. Delinquency committee members monitor mortgage payments monthly and develop the management processes.
Suggestion: We should spend a little of the remaining stimulus dough to expand HomeWORKS to the first-time homebuyers rushing into the market because of the $8,000 tax credit.
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Double-digit days for LP, O’Charley’s
Posted on November 5, 2009 at 2:57 pm
Shares of Louisiana-Pacific (Ticker: LPX) are basking in the afterglow of analyst praise and have extended the strong run that was cut short yesterday. Heading into the close, they’re up more than 17 percent.
Why O’Charley’s is up about the same amount is more of a puzzle. Yes, many industry players are having good days, but this Dow Jones chart shows Nashville-based O’Charley’s (Ticker: CHUX) is outpacting them by a factor of two to one.
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Analysts impressed with LP
Posted on at 7:43 am
Although they rolled over late in the day like the broader market, shares of Louisiana-Pacific (Ticker: LPX) had a nice Wednesday after several analysts praised Rick Frost’s crew for their steady hand during a “sloppy” economy. D.A. Davidson analyst Steven Chercover raised his rating on the company to ‘buy’ from ‘neutral.’
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LP buys back chunk of debt
Posted on November 4, 2009 at 8:25 amIn its quarterly filing with the SEC, Louisiana-Pacific says it spent $113 million late last month to buy back more than a third of its debt series due in 2017. The company (Ticker: LPX) will take a $21 million charge this quarter to account for the deal.
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Apartment rents to slide further
Posted on November 2, 2009 at 7:47 amData from the National Multi Housing Council shows the apartment market finding its feet, but observers don’t see price support coming soon from the job market.
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