More Americans at Risk of Foreclosure

Wednesday, February 22, 2012

Foreclosure filings up or down? Whose report is right?

Feb. 21, 2012 Miami, FL - Mortgage Lending News: If you were paying attention on Thursday, you saw two different stories about the housing market: The Mortgage Bankers Association said delinquencies and foreclosures fell in the fourth quarter of 2011 while RealtyTrac said foreclosure filings rose in January.

One simple way to account for the difference: They’re looking at different points in time. But it’s also worth noting that the reports are generated using two different methodologies.

Reverse mortgages on the rise.

Feb. 21, 2012 Miami, FL - Mortgage Lending NewsConverting home equity into cash has been a challenge for homeowners since the real-estate downturn, but a growing number of lenders are quietly reviving a loan for seniors that does just that: the reverse mortgage.

Reverse mortgages allow homeowners who are at least 62 years old to draw down on their home's equity in exchange for cash in several ways, including one lump sum, a line of credit or monthly payments.

Mortgage foreclosures and delinquencies hit three-year low

Feb. 16, 2012 Miami, FL - Mortgage Lending News: The percentage of mortgages at least one payment past due fell in the fourth quarter of 2011 and fewer loans entered the foreclosure process, reflecting improvement seen in the economy, the Mortgage Bankers Association reported on Thursday.

The current housing crisis may determined this year's election.

Feb. 17, 2012 Miami, FL - Mortgage Lending News:The housing market has never been a major factor in a presidential election. Sometimes, the topic has hardly garnered more than a passing mention by either political party.

Right now, housing is not yet a front-and-center issue for President Obama or any of the Republican presidential hopefuls. But no less than five national surveys indicate that the issue is a top-of-mind topic among voters. Granted, the polls were undertaken by real-estate-centric organizations — Realtor.com, the National Association of Home Builders, HouseLogic, Yahoo Real Estate and Trulia. But the unanimity of their findings underscores just how worried current and future owners are about their homes.

JP Morgan Chase, and UBS are threaten to be downgraded two levels by Moody's.

Feb. 16, 2012 Miami, FL - Mortgage Lending News: UBS AG, Credit Suisse Group AG (CSGN) and Morgan Stanley’s credit ratings may be cut by as many as three levels by Moody’s Investors Service, which is reviewing 17 banks and securities firms with global capital markets operations.

Goldman Sachs Group Inc. (GS), Deutsche Bank AG (DBK), JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) are among companies that may be downgraded by two levels, Moody’s said in a statement, adding that the “guidance is indicative only.” Moody’s today cut some European insurers’ ratings based on risks stemming from the region’s sovereign debt crisis.

Federal Housing Administration will exhaust its reserves next year.

Feb. 16, 2012 Miami, FL - Mortgage Lending News: The Federal Housing Administration will exhaust its reserves over the coming year, according to budget projections released Monday, which would require a Treasury infusion for the first time in its 78-year history.

But Obama administration officials said more recent developments, including fines that will go to the FHA from last week's $25 billion mortgage settlement with five major banks, could cover any shortfall and obviate the need for taxpayer funding.

San Francisco officials finds foreclosures riddled with errors

An audit by San Francisco county officials of about 400 recent foreclosures there determined that almost all involved either legal violations or suspicious documentation, according to a report released Wednesday.

Anecdotal evidence indicating foreclosure abuse has been plentiful since the mortgage boom turned to bust in 2008. But the detailed and comprehensive nature of the San Francisco findings suggest how pervasive foreclosure irregularities may be across the nation.

The improprieties range from the basic — a failure to warn borrowers that they were in default on their loans as required by law — to the arcane. For example, transfers of many loans in the foreclosure files were made by entities that had no right to assign them and institutions took back properties in auctions even though they had not proved ownership.

More Americans at Risk of Foreclosure

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Thursday, 25 August 2011 07:14

In a normal market, the percentage of delinquent borrowers is about 1.1 percent, according to the trade group.

Delinquent mortgages have plummeted from a record high of more than 10 percent of residential mortgages a year ago. But the decline is due partly to delays in foreclosure filings that are backlogged in several state courts, including Florida, New Jersey, Illinois and New York.

The end of a state and federal investigation into faulty foreclosure paperwork will likely lead to increased foreclosures later this year.

Analysts say the increase is especially worrisome because it’s due mainly to high unemployment, which tends to raise the number of missed payments and foreclosures over time. And once delayed foreclosures are re-started, the economy could suffer a hit.

"The current processing delays mean this will not happen quickly, underlining our view that both the housing market and the economy will remain weak for a few years," said Paul Dales, senior U.S. economist at Capital Economics.

The quarterly survey covers nearly 88 percent of primary residential mortgages totaling nearly 44 million loans.

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