Loss Mitigation
By Esther Cho | 05/24/2013
In April, the share of sales involving foreclosures and short sales maintained their downward path, falling to the lowest level since 2009, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking survey. Using a three-month moving average, the survey found distressed sales accounted for 33 percent of home purchases in April, a decrease from 35.6 percent in March and 43.6 percent in April 2012. As expected, investor activity also slowed during the same time period.
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By Andy Beth Miller | 05/24/2013
The Federal Reserve Bank of Cleveland recently compiled a comprehensive report to aid the creation of a more effective environment for which Ohioans can navigate (and stabilize) their state's housing market successfully. There are five main policies that the Cleveland Fed presented, calling for careful consideration from Ohioans. The first policy attempts to address the age-old issue of foreclosures, vacancies, and low-value or abandoned properties.
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By Esther Cho | 05/23/2013
Freddie Mac is in the process of securitizing over $1 billion in performing loans that were modified.
The modified loans have been performing for at least six consecutive months and were held in the company's mortgage portfolio. "Securitizing loans that have been modified and are now performing will allow Freddie Mac to better manage its mortgage-related investments portfolio," said Adama Kah, Freddie Mac VP of distressed assets management.
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By Esther Cho | 05/22/2013
Although data shows women generally earn less income than men, results from a recent Experian study found women come out ahead when comparing how mortgage debt is managed. According to the study, men were more likely to have a higher mortgage loan amount compared to women, but men were also more likely to be delinquent by 60 days or more. Experian found the mortgage origination amount for men was $187,245, which is 4.9 percent higher compared to the amount for women. At the same time, 5.7 percent of men were delinquent on their mortgage compared to 5.3 percent of women.
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By Esther Cho | 05/22/2013
As home values improve and servicers continue to ramp up efforts to reduce delinquent pipelines through short sales and loan modifications, the composition of RMBS loan pools outstanding should also improve, according to Moody's most recent ResiLandscape. According to analysts from Moody's, rising home prices motivate current borrowers to avoid default, and they increase the proportion of current loans with loan-to-value (LTV) ratios below 100, which are the loans that are the least likely to go incur losses.
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By Esther Cho | 05/22/2013
Month-end mortgage performance data in April continued to point to a recovery as delinquency and foreclosure rates posted record improvements, Lender Processing Services, Inc. (LPS) reported Wednesday. In April, the delinquency rate sunk below 6.5 percent for the first time since July 2008, according to the data provider. At 6.21 percent, the delinquency rate recorded a month-over-month decrease of 5.81 percent and a year-over-year decline of 9.61 percent. The foreclosure pre-sale inventory rate, which stood at 3.17 percent in April, plunged 24.55 percent from a year ago.
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By Esther Cho | 05/21/2013
Fannie Mae and Freddie Mac reminded servicers of mortgage relief options available to homeowners whose residences were affected by the tornado that ravaged areas in Oklahoma.
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By Esther Cho | 05/21/2013
The five banks that took part in the national mortgage settlement are getting close to completing their consumer relief obligations a year after the landmark deal was reached. So far, the five banks--Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial--have provided $50.63 billion in consumer relief to over 621,700 borrowers, according to an update from the settlement monitor Joseph A. Smith, Jr. The provided relief comes out to about $81,437 per borrower.
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By Esther Cho | 05/20/2013
Fiscal drags such as the sequester may have weakened economic momentum, but the economy should "reaccelerate" in the second half of this year as financial and housing conditions improve, according to Fannie Mae's Economic and Strategic Research Group. "Employment numbers are getting better, albeit it at a relatively slow pace, and the April employment picture should help boost consumer sentiment toward the economy overall," said Doug Duncan, chief economist for Fannie Mae.
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By Esther Cho | 05/17/2013
While the worst of the foreclosure crisis appears to be over, foreclosures led to the loss of $192.6 billion in wealth for Americans in 2012, according a report from the Alliance for a Just Society, national coalition of eight state-based grassroots community organizations. On average, the estimated loss in wealth last year comes out to about $1,700 per household for 114.7 million households in the nation, according to the coalition. The report also suggested the crisis is not yet over.
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