Mike

WSJ discusses what implications of the coming FHA bailout

Nov 232012

FHA is the remaining subprime lender after the housing bust. How FHA’s Weak Finances Could Shape Housing Policy November 19, 2012, 1:14 PM By Nick Timiraos The prospect that the Federal Housing Administration may finally require taxpayer assistance threatens to complicate efforts by the agency to provide additional housing market stimulus. On Friday, the agency reported that its current reserves aren’t enough to cover potential losses, leaving a net worth deficit of $16.3 billion. Already, Obama administration officials have said they will increase insurance premiums that future borrowers will have to pay, and they’ll require borrowers to pay those premiums for a lot longer than in the past. But Friday’s report could have other ramifications. Here are three: 1) The FHA’s [Read More...]

Buyers are putting down larger downpayments as a percentage of the purchase price

Nov 222012

The tighter FHA credit might be pushing more potential buyers to conventional (20%) loans. Also, the shear number of new mortgages have decreased and that could have changed the mixed. Homebuyers put more money down Posted by Megan Hopkins on November 14, 2012 11:01 AM A recent survey from the National Association of Realtors recent survey shows that with a recovering housing market and more borrowers choosing higher down payment conventional loans versus FHA loans, home buyers are now investing more into their new homes. Of the surveyed homebuyers, 87% used a mortgage for the purchase. Typically 91% of the home was financed, requiring a 9% down payment. These numbers suggest that the real estate market is showing signs of [Read More...]

The decrease in the cost of borrowing doesn’t spur an increase in homeownership

Nov 212012

Banks have done a great of keeping prices up. Homeownership Remains Low Despite Decreasing Burden of Owning 11/16/2012 By: Krista Franks Brock The landscape of homeownership has undergone significant changes in recent years: The homeownership rate has declined, but so has the cost burden of owning a home. Both of these trends are most prevalent among young homeowners, according to a recent report from Fannie Mae. The national homeownership rate has declined in each of the past four years, according to the most recent Census data, which extends through 2011. The 2011 homeownership rate of 64.6 is 2.6 percentage points lower than the 2007 rate. The decline among those 25 to 44 years of age is more than twice the [Read More...]

More ponzi, to renter, to possible ponzi again newsarticles

Nov 202012

Some of these people are on their 3rd house! Foreclosed Homeowners Getting Back In The Market by Yuki Noguchi November 14, 2012 Buyers are coming back into the housing market after losing their homes during the financial crisis — returning to homeownership more quickly than lenders have typically allowed. With millions of families with recent foreclosures on their records, some report that they are having luck buying a house — in some cases within three years. Jason Strotheide, for example, bought his house in Charlotte, Mich., from his grandfather. After Strotheide refinanced the house to pay for renovations, payments increased, causing the family to rely more on ballooning credit. In early 2010, he and his wife filed for bankruptcy protection [Read More...]

California’s Homeowners Bill of Rights causing more squatting

Nov 192012

In state that already has SB 1073 (I think that’s the number) doe we need another bill that allows squatters not to pay their mortgages. California Dual-Tracking Ban Leads to Spike in Cancelled Foreclosures 11/14/2012 By: Esther Cho A specific provision in California’s Homeowner Bill of Rights may have led to a surge in foreclosure cancellations, according to a report from ForeclosureRadar. Foreclosure cancellations in California spiked 62.1 percent from September to October and 36.7 percent over a one-year period, data from ForeclosureRadar revealed. The jump from September to October is the largest monthly increase since the data provider began tracking foreclosures in September 2006. ForeclosureRadar observed the increase may be due to a particular provision in the Homeowner Bill [Read More...]

BofA to offer 30,000 loan owners nearly $5 billion in principal reductions

Nov 182012

I guess the people that pay their rent on time or mortgage get nothing. BofA offers 30,000 borrowers $4.75 billion in principal reductions By Kerri Ann Panchuk November 14, 2012 • 11:36am Bank of America ($9.12 0.03%) approved 30,000 mortgage customers for principal reductions on first-lien mortgages with a total value of $4.75 billion as part of its consumer-relief mandate under the national mortgage servicing settlement program. Bank of America executives participated on a teleconferenced update to the settlement. They said that, through September, BofA completed or approved $15.8 billion in mortgage debt relief for 164,000 homeowners. The progress report comes the same day that four other banks are expected to release their compliance updates with the national mortgage servicing [Read More...]

States the have to pay higher Fannie/Freddie fees are fighting back

Nov 172012

If borrowers don’t pay these fees then it will fall on the tax payer. Connecticut lawmakers argue against FHFA g-fee hikes By Kerri Ann Panchuk November 14, 2012 • 10:45am Connecticut lawmakers sent a letter to the Federal Housing Finance Agency warning a proposed hike to guarantee fees on mortgages acquired by Fannie Mae and Freddie Mac will increase the cost of homeownership. The proposed g-fee fee increase will effect five states, including Connecticut, Illinois, Florida, New Jersey and New York. Some estimates from the Royal Bank of Scotland ($8.90 -0.03%) suggests the increase could add as much as $100 to annual mortgage payments in the impacted states. The g-fee proposal is designed to recover a portion of the expenses [Read More...]

Deliquency rates decrease a little but still historically high

Nov 162012

For the month of October in the 4th quarter the number of delinquency increased by $200,000. National Delinquency Rate Improves in Q3 but Remains High 11/13/2012 By: Esther Cho The national mortgage delinquency rate fell further in Q3 2012 to 5.41 percent, TransUnion reported Tuesday. The rate is a decrease from 5.49 percent in Q2 2012 and a near 8 percent drop from 5.88 percent in Q3 2011, according to the credit bureau. The delinquency rate includes borrowers who are past due by 60 or more days. When examining improvements among metropolitan areas, however, TransUnion found a smaller share of metros experienced a drop in their rates compared to previous quarters. In Q3 of this year, 49 percent of metro [Read More...]

Don’t overpay and face financial hardship. Before you make an offer, get our exclusive cost of ownership report!

Nov 162012

Are you ready to make an offer, but you are worried the cost of ownership is really more than you can afford? Don’t make a mistake that might cost you the family home, your life savings, and your good credit! Get the advice of a seasoned professional. Contact us at info@ochousingnews.com today! We produce detailed reports showing the cost of ownership based on the most likely transaction price and current financing terms. You will know how much you will spend each month in out-of-pocket expenditures and the true monthly cost of ownership factoring in tax deductions, loan amortization, and opportunity costs on your down payment. In addition, we show you how this cost compares to a rental of equal quality [Read More...]

Builders are not so confident on the housing recovery

Nov 152012

Builders are just making enough money to go year to year or quarter to quarter. Builders Warn on Housing Published: Tuesday, 13 Nov 2012 | 2:26 PM ET By: Diana Olick CNBC Real Estate Reporter It’s one thing to jump on the bandwagon when things are getting better, it’s quite another to jump off of it when everyone around you, not to mention your own company’s earnings, would seem to confirm that sentiment. But that’s just what Donald J. Tomnitz, CEO of D.R. Horton [DHI Loading... () ], the nation’s largest homebuilder by volume did.“I still don’t see a lot of jobs being created,” he told an earnings conference call, sending his company’s stock down when it should have been [Read More...]