The stock is still doing horrible in the past 24 months. Any big increases in mortgage rates and you see new defaults especially on HAMP underwater refinances.
Freddie Mac swings to profit as provisions fall
By Saabira Chaudhuri Aug. 7, 2012, 8:52 a.m. EDT
Freddie Mac FMCC +7.69% swung to a second-quarter profit as the mortgage-finance company saw a sharp decline in its provision for credit losses and also revealed it didn’t request any government aid after paying $1.8 billion in dividends to the Treasury Department during the quarter.
As of May, Freddie had borrowed $72 billion from the U.S. government. Including the most recent dividend payment, it has now paid back over $19 billion in dividends.
Freddie and sister company Fannie Mae FNMA +4.48% don’t lend to consumers; rather, they buy mortgages from banks and securitize them for purchase by investors, allowing lenders to continue making loans to consumers. The companies were put into government conservatorship in 2008 as the housing-market collapse drove a surge in losses at the companies. Since then, they have stayed afloat through several infusions of taxpayer money.
Last week, The Wall Street Journal reported the Federal Housing Finance Agency blocked Fannie Mae and Freddie Mac from joining a program that reduces mortgage balances for some homeowners, sharpening a fight over how to clean up the mess left by the housing bust. The regulator acknowledged that trimming balances for homeowners owing much more than their homes are worth could save the firms money. However, it noted those savings weren’t overwhelming enough to trump other upfront or hidden costs of such a program
Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.
We're sorry, but it seems that we're having some problems loading MLS # P829982 from our database. Please check back soon.
 |
$499,900 - |
0.23 miles 4 bd / 1.75 ba 1,410 Sq. Ft. |
|
 |
$485,000 2984 CROFTDON St |
0.26 miles 3 bd / 2 ba 1,400 Sq. Ft. |
|
 |
$529,900 934 CHEYENNE St |
0.36 miles 3 bd / 1.75 ba 1,662 Sq. Ft. |
|
 |
$430,000 1198 BISMARK Way |
0.42 miles 4 bd / 2 ba 1,404 Sq. Ft. |
|
 |
$534,900 1191 EL CAMINO Dr |
0.51 miles 4 bd / 1.75 ba 1,707 Sq. Ft. |
|
 |
$580,000 963 SONORA St |
0.52 miles 3 bd / 1.75 ba 1,550 Sq. Ft. |
|
 |
$484,900 2835 PORTOLA Dr |
0.72 miles 3 bd / 2 ba 1,294 Sq. Ft. |
|
 |
$540,000 2018 WEST SUMMER WIND |
1.18 miles 3 bd / 2 ba 1,406 Sq. Ft. |
|
 |
$529,900 1585 CORSICA Pl |
1.22 miles 3 bd / 1.75 ba 1,556 Sq. Ft. |
|
 |
$599,900 2984 TEAKWOOD Pl |
1.28 miles 4 bd / 2 ba 1,557 Sq. Ft. |
The new wrinkle on amend-extend-pretend.
CitiMortgage to Launch Home Rental Program as Foreclosure Alternative
CitiMortgage announced the launch of the Home Rental Program, a program designed to provide an alternative to foreclosure and allow eligible borrowers to stay in their homes.
The Home Rental Program will be managed by Carrington Capital Management, LLC and Carrington Mortgage Services, LLC. CitiMortgage and Carrington developed the program as a pilot.
Under the program, the eligible borrower transfers ownership of the property to a vehicle established by Carrington Capital and its joint venture partner, Oaktree Capital Management, L.P. A lease will then be established for the property at a manageable monthly payment.
Lease payments will be determined by local market rates but are expected to be lower than the borrower’s mortgage obligation. Carrington will work with borrowers to establish a length for each lease.
The program will be tested in six of the hardest-hit markets to evaluate its effectiveness: Arizona, California, Texas, Florida, Nevada, and Georgia. Carrington will contact homeowners who meet eligibility requirements.
In order to be eligible for the program, candidates must: Occupy the property; owe more than their home is worth; be delinquent for 120 days; and be unable or ineligible to receive an affordable loan modification while still having the resources to make monthly rent payments. In addition, candidates must have a loan in the pilot portfolio serviced by Carrington.
To implement the program, CitiMortgage has transferred the ownership of loans in its portfolio through the sale of $158 million in mortgages to the Carrington/Oaktree partnership.
“We’re looking forward to working on this important initiative with CitiMortgage and our partner, Oaktree Capital Management,” said Bruce Rose, founder and CEO of Carrington. “Offering alternatives for borrowers looking to stay in their homes and simultaneously relieving their distress is core to the operating principles of our firm and will help substantially in the overall housing market recovery.”