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Institutional Investors Gobble up Presale Foreclosures
In another sign of institutional investors' appetites for foreclosures, inventories of presale foreclosures have declined nearly twenty percent since last year as lenders have made volumes of foreclosures available via REO tapes to well-funded hedge funds eager to buy in bulk.
First-time Buyers to Pay for FHA’s Financial Crisis
By: Steve Cook; Wed, Feb 20, 2013
Facing a financial crisis, FHA is asking first-time buyers to pay for the sins of borrowers who came before them. Increases in FHA mortgage insurance premiums and new, tougher underwriting standards that take effect April 1 will cost new borrowers significantly more than refinancing borrowers who have had an FHA loan four years or longer.
Less than Half of Today’s Mortgages Will Qualify Under New Mortgage Rules
By: Steve Cook; Tue, Feb 12, 2013
Two new Treasury Department mortgage regulations designed to reduce lender risk will make it impossible for 60 percent of the mortgages being approved today to be approved in seven years. The impact will be greater for mortgages used to buy homes rather than refinance and in the states where prices have been most volatile.
Obama Considering HARP for Non-Agency Borrowers
By: Steve Cook; Mon, Feb 11, 2013
President Obama is considering announcing a major expansion of the HARP 2.1 refinancing program in his upcoming State of the Union speech that would make it possible for underwater borrowers whose loans are not held by Fannie Mae or Freddie Mac to refinance at today's low rates.
Florida Markets Still the Best Places to Buy Foreclosures
By: editor; Thu, Jan 31, 2013
Hot foreclosure markets have come and gone over the past seven years but one thing seems to stay the same. The markets with the most and the cheapest foreclosures are still located in Florida.
Higher Rents Don’t Faze Tenants
By: editor; Thu, Jun 28, 2012
Even though 92 percent of property managers report rents are rising or the same as they were a year ago, property managers are attracting residents more easily than a year ago.
FHA Foreclosures Soared in April
FHA foreclosures rose 73 percent in April, driven primarily by defaults of loans made in 2008 and 2009 vintage loans, raising new questions about the solvency of the popular government program, which accounts for about a third of all new mortgages.
Huge Foreclosure Flood Feared
By: Steve Cook; Wed, May 30, 2012
More than half of all Americans are concerned that a huge wave of backlogged foreclosures to be released by major lenders in the wake of the Robo-signing scandal will lower home values in their markets.
Pressure Rises on FHA
By: Steve Cook; Thu, Feb 16, 2012
While delinquencies and defaults slowly improve in the housing economy as a whole, FHA's portfolio has grown consistently worse over the past nine months, creating increased pressure on the agency to reduce risk and increase costs to its borrowers, most of whom are first-time buyers.
Bulk Sales of GSE Foreclosures Begin
By: editor; Wed, Feb 1, 2012
The Federal Housing Finance Agency (FHFA) today invited Investors interested in purchasing pools of Fannie Mae, Freddie Mac and FHA foreclosures in the nations hardest-hit metropolitan areas with the requirement they rent them for a period of year to pre-qualify.
Obama HARP Expansion Builds on New Refi Momentum
By: Steve Cook; Wed, Jan 25, 2012
In his State of the Union speech last night, President Obama announced he will push for legislation that will significantly expand the newly revised HARP program that allows underwater homeowners who are to refinance at today's historically low rates.
Will Record Flood Losses Save or Drown Flood Insurance?
By: Steve Cook; Wed, Dec 14, 2011
Just as Congress approaches a drop dead deadline Friday on whether or not to continue the nation's flood insurance program, a new report details the cost and extent of one of worst year for floods in recent history.
Computerized Appraisals Win One in Harp 2.0
By: Steve Cook; Mon, Nov 7, 2011
The federal government, with the reluctant support of the two leading professional appraisal organizations, has sanctioned the use of computerized, appraisals using algorithms and computerized databases of property data to determine a property's value.
Fixing the Housing Crisis Would Create One Million Jobs Annually
By: Steve Cook; Thu, Aug 18, 2011
By writing down all underwater mortgages to market value, the nation's banks could pump $71 billion per year into the economy, create more than one million jobs annually, save families $6,500 per year on mortgage payments.
USDA Has $11.2 Billion to Guarantee No-Down Mortgages
By: Steve Cook; Fri, Aug 12, 2011
The US Department of Agriculture has only two months to spend $11.2 billion on its no-down payment rural development loan program, a record amount at this juncture in the federal fiscal year for the program that provides no down payment mortgages to borrowers in rural and suburban markets.
New Billion Dollar Emergency Loan Program Hopes to Stave Off Foreclosures
By: Steve Cook; Thu, Jul 7, 2011
The U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks America launched a new Emergency Homeowners' Loan Program (EHLP) today to help homeowners who are at risk of foreclosure in 27 states across the country and Puerto Rico.
Administration Rips Four Major Mortgage Lenders
By: Steve Cook; Fri, Jun 10, 2011
Four of the nation's largest mortgage lenders are "in need of substantial improvement" to service homeowners applying for mortgage modifications under the Making Home Affordable Program (HAMP).
Congress Doubles Funding for Troubled USDA Housing Loans
By: Steve Cook; Tue, Apr 26, 2011
While slashing funds for disability, elderly, homelessness and Native American housing programs, Congress has doubled the funding for a USDA housing program that may cost the government $4 billion in defaulting loans because over a third of the government-guaranteed rural home loans in its portfolio may be ineligible for the program.
Left Unloads on Qualified Residential Mortgage Rule
By: Steve Cook; Wed, Apr 6, 2011
Lenders, home builders and real estate agents fighting a new regulation that could significantly raise down payments and loan-to-value ratios are gaining support from an unlikely quarter.
Capping the Mortgage Interest Deduction: Third Time the Charm?
By: Steve Cook; Mon, Feb 14, 2011
For the third straight year, the Obama Administration has proposed limiting the value of the mortgage interest deduction by limiting the amount that wealthier tax payers can deduct.
Obama Plan for Fannie and Freddie Holds Short-term Surprises
By: Steve Cook; Fri, Feb 11, 2011
The Administration's plan to wind down Fannie Mae and Freddie Mac over the next five to seven years and replace their functions with new regulation and private sector capital announced this morning contains some short term surprises that will impact real estate consumers and the housing economy within the next year.
Robo-gate Will Haunt REO Inventory for Four Years
By: Steve Cook; Mon, Feb 7, 2011
Fall-out from the scandal known as "Robo-gate" will lengthen the time frame for clearing all the current non-agency inventory of distressed properties to four years, according to a new report today by Fitch Ratings.
HAMP Cuts Re-default Rate
By: Steve Cook; Fri, Feb 4, 2011
Homeowners who modified their mortgages under government's Home Affordable Modification Program (HAMP) are staying current on their loans at a far better rate than critics expected and are outperforming industry modifications, according to the largest data from the Treasury Department.
FHA Steps Up Intervention for Seniors at Risk of Foreclosure
By: Frances Flynn Thorsen; Wed, Jan 5, 2011
The Federal Housing Administration (FHA) offers new guidance for homeowners and lenders for borrowers with reverse mortgages falling behind on property taxes and insurance premiums, placing them at risk of foreclosure. “We understand that some senior citizens have not paid their taxes or insurance for some time and may be at risk of losing their [...]
5 REO Acquisition Avenues for Nonprofits and Govvies
By: Frances Flynn Thorsen; Wed, Dec 29, 2010
Nonprofits are flush with federal stimulus funds to purchase foreclosed properties. Faced with fierce competition for REO properties in hot markets, Neighborhood Stabilization Project (NSP) managers are adopting multiple property acquisition strategies.
Housing Counseling Agencies Advance as Major Players in Real Estate Market
By: Frances Flynn Thorsen; Fri, Dec 24, 2010
The government finds itself in the throes of a major housing crisis and asks, “What works? What doesn’t work?” Recent studies prove homebuyers working with housing counseling agencies are less likely to suffer foreclosure than buyers who go it alone. Homeowners working with housing counseling agencies are more likely to win a loan modification than borrowers making other choices. The government responds with a record 22% increase over last year’s federal funding in 2011.
Foreclosure: Crafting Graceful Exit Options and Recovery Strategies
By: Frances Flynn Thorsen; Thu, Dec 23, 2010
“Not since the Great Depression has an economic downturn and the accompanying foreclosure crisis left so many lives in ruins. How can individuals and families find the resources and support they need to put their lives back in order?” asks A Resource Guide for Foreclosure Recovery, a 25-page handbook published by the Community Affairs division [...]
More Homeowners Dodge Foreclosure Bullet with NFMC Counseling
By: Frances Flynn Thorsen; Tue, Dec 21, 2010
All loss mitigators are not created equal. The odds of curing a foreclosure and avoiding redefault are 1.7 times better for homeowners enrolled in the National Foreclosure Mitigation Counseling (NFMC) Program than for homeowners who do not receiving such counseling, according to the Urban Institute. The group released a report yesterday analyzing the NFMC program [...]
Mortgage Fraud Rises 20 Percent Since 2009
By: Steve Cook; Wed, Nov 17, 2010
Mortgage fraud increased by more than 20 percent since the fraud rates reached their lowest point in early 2009, according to an update of CoreLogic's Fraud Trends Report.
Election Spells Doom for Fannie and Freddie
By: Steve Cook; Wed, Nov 3, 2010
Among the many messages voters sent to Washington yesterday was: Get the government out of financing homes now and let the private sector do it.
Fannie and Freddie Trump Homebuyer Tax Credit
By: Steve Cook; Fri, Oct 22, 2010
Keeping Freddie and Fannie solvent has cost taxpayers six times as much as the homebuyer tax credit and, depending on the economy, could just about equal the cost of mortgage interest deduction over the next two years, according to projections released yesterday by the Federal Housing Finance Administration.
Mortgage Modifications are Sticking
By: Steve Cook; Wed, Sep 29, 2010
Though the Administration's Home Affordable Modification Program (HAMP) is falling far short of its goal of helping three to four million homeowners, the program is succeeding at helping those who do make through the program are stay current on their payments and avoid re-default.
Distress Sales Market Share to Rise
By: Steve Cook; Fri, Sep 17, 2010
Distress sales, foreclosures and short sales will increase their market share during the fourth quarter as the tax-credit induced sales bump disappears and buyers return to bargain shopping.
Move-up Buyers Claim One Third of Tax Credits
By: Steve Cook; Wed, Sep 8, 2010
Preliminary reports indicate that more existing homeowners than expected took advantage of the homebuyer tax credit to help buy a new home this year.
Housing Faces the Fall
By: Steve Cook; Mon, Sep 6, 2010
The consensus among the experts that home prices will fall farther before they hit bottom may become a self-fulfilling prophecy as the very buyers so desperately needed to buy up the excess inventory and stop the price slide will wait until they are absolutely sure that prices have reached their lowest point.
Positive Pending Home Sales Stifle Tax Credit Talk
By: Steve Cook; Thu, Sep 2, 2010
Just when it seemed that only one more negative housing report would be enough to rev up the bandwagon for a new federal homebuyer tax credit, today's pending home sales index for August baffled prognosticators and restored hope the no more government stimulus would be needed to stabilize housing markets.
Tax Credit Talk Splits Real Estate Community
By: Steve Cook; Tue, Aug 31, 2010
HUD Secretary Shaun Donovan created turmoil in the real estate industry when he said on CNN Sunday that a restoration of the homebuyer tax credit is "not off the table" and that it is "too soon to say" whether the administration's credit tax credit, which expired April 30, will be revived.
Donovan Floats Tax Credit Balloon
By: Steve Cook; Mon, Aug 30, 2010
After admitting twice that the July home sales numbers released last week were "clearly worse than we expected," HUD Secretary Shaun Donovan did not rule out the prospect that the Administration will revive the homebuyer tax credit that expired April 30.
First-time Buyers Sink Below Pre-Credit Levels
By: Steve Cook; Mon, Aug 23, 2010
Last month, first-time homebuyers' share of the housing market fell lower than it has been since 2008 when the first-time version of the homebuyer tax credit took effect.
Tax Credit Temporarily Checked Falling Home Values
By: Steve Cook; Mon, Aug 9, 2010
Though home values in the United States continued to decline in the second quarter of 2010, the percentage of single-family homeowners with mortgages who are underwater fell to 21.5 percent from 23.3 percent in the first quarter and 23 percent one year ago., according to the Zillow Real Estate Market Reports.
Prices Rise 7.9 Percent
By: Steve Cook; Thu, Aug 5, 2010
Despite reports that sellers were dropping prices following the expiration of the homebuyer tax credit April 30, a new national report found that prices rose an average of 7.9 percent in the second quarter over the first, though price increases on listings slowed in June.
Poll Favors New Tax Credit Over Bulldozing Homes
By: Steve Cook; Tue, Aug 3, 2010
Nearly half, or 48 percent, of those participating in an online survey released today said they want the Federal tax credit for home buyers back to re-stimulate the housing market.
Madmen to Market Mortgage Modifications
By: Steve Cook; Wed, Jul 28, 2010
With the number of final mortgage modifications below target and criticism mounting that it's not making a significant difference in the war to stem foreclosures, the Administration's Home Affordable Modification Program (*HAMP) is asking the advertising wizards of Madison Avenue for help.
Home Sales Contracts Plunge to All-time Low
By: Steve Cook; Fri, Jul 2, 2010
Home purchase contracts signed in May dropped to their lowest level in the history of the Pending Home Sales Index. Contracts fell to a level of 77.6\, 30 percent below April and 15.9 percent below May 2009.
Senate Beats Deadline and Clears Homebuyer Tax Credit Extension
By: Steve Cook; Thu, Jul 1, 2010
After failing by two votes to pass an extension of unemployment benefits that included an extension of the homebuyer tax credit, the Senate last night agreed to a separate bill to give homebuyers an extra three-months to close on a purchase that qualifies for a federal tax credits of up to $8,000.
Critics Assail Dying Tax Credit
By: Steve Cook; Tue, Jun 29, 2010
As the clock ticks down on the final hours of the homebuyer tax credits, critics of the policy are celebrating their demise even as housing industry lobbyists scramble valiantly for an eleventh hour legislative life boat that will extend them another three months.
Homebuyer Tax Credit Extension Hits the Wall
By: Steve Cook; Fri, Jun 25, 2010
Legislation containing a three month extension of the popular homebuyer tax credits to allow buyers to close by September 30th died in the Senate last night and the opportunity to extend the credits past the current deadline of June 30th may have passed.
California’s New Tax Credit Keeps Them Coming as First-timer Traffic Tanks Nationally
By: Steve Cook; Tue, Jun 22, 2010
California enacted its new $10,000 first-time homebuyer tax credit just in time to avoid the precipitous drop in first-time buyer traffic in May that hit the rest of the nation's real estate markets, according to proprietary data from the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.
First-Time Homebuyers Disappeared After Tax Credit Ended
By: Steve Cook; Mon, Jun 21, 2010
Homebuyer traffic nationwide tumbled in May, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. Most of the decline was attributable to first-time homebuyers who sharply reduced their home shopping last month.
Most Modified Loans Will Re-default in 12 Months
By: Steve Cook; Wed, Jun 16, 2010
Despite the extensive and lengthy process required to modify mortgages in default so that borrowers could afford their payments, most will default again in a year or less, according to Fitch Ratings.
FHA Insurance Premiums to Triple
By: Steve Cook; Mon, Jun 14, 2010
The House last week approved legislation allowing FHA to increase the annual premiums borrowers are required to pay for mortgage insurance. The Senate has yet to consider the bill.
Broker Price Opinions are Focus of Short Sale Fraud
By: Steve Cook; Fri, Jun 11, 2010
Banks using real estate brokers and agents to value short sales are increasingly becoming the victims of fraudulent schemes that have occurred in more than 1 percent of short sales this year and have already cost lenders at least $50 million in lost revenue, according to CoreLogic.
Owners Slash Prices After Tax Credit
By: Steve Cook; Wed, Jun 9, 2010
Nearly half of home sellers in 26 of the nation's largest markets slashed prices in May following the expiration of he Federal tax credit April 30, dropping average prices by nearly $2500 according to a monthly review of MLS-listed properties by the national online real estate brokerage ZipRealty.
Record Loan Demand Strains FHA’s Capacity
By: Steve Cook; Fri, Jun 4, 2010
A patchwork of 37 computer programs that date back to the early eighties and a “sadly understaffed” workforce probably won’t change until FHA becomes an independent agency apart from HUD, said former FHA Commissioner Brian Montgomery.
Will the Tax Credit Bump Create a Summer Slump?
By: Steve Cook; Thu, May 27, 2010
Evidence is growing that rather than stimulate additional home sales, the final phase of the tax credit may have only encouraged buyers who were planning to buy a home anyway to move up their purchase a few months so that they could make the April 30 deadline and qualify for the credit.
First-time Buyers Fade in April
By: Steve Cook; Mon, May 24, 2010
The end of the tax credit brought about a significant decline in first-time homebuyers in April, the heart of the 2010 home buying season.
Prices Fall in the Wake of the Tax Credit
By: Steve Cook; Thu, May 13, 2010
However, if many buyers artificially inflated their prices to take advantage of the credit, that price drop might occur faster in many markets.
Tax Credit Fades Away
By: Steve Cook; Sun, May 2, 2010
The homebuyer tax credit faded away Friday night with a whimper in most markets and a bang in just a few, according to reports from across the county.
House Blesses No Down USDA Guaranteed Loans
By: Steve Cook; Wed, Apr 28, 2010
If you have decent credit, live in a rural area, earn less than 115 percent of the median income in your area, you might just qualify for the best mortgage deal still available in America.
Homebuyer Tax Credit Backfires on Buyers
By: Steve Cook; Tue, Apr 20, 2010
As the final two weeks of the homebuyer tax credit tick away, many sellers are playing a game of "chicken" with buyers by refusing to negotiate on price and seeking other concessions.
Policy by Polling to Seal Fates of Fannie and Freddie
By: Steve Cook; Thu, Apr 15, 2010
Yesterday the Treasury Department released a seven question public poll whose results will provide input on the future of Fannie Mae and Freddie Mac.
Homebuyer Tax Credit Backfires
By: Steve Cook; Mon, Mar 29, 2010
Hype and pressure on buyers to act before the home buyer tax credit expires April 30 is causing some real estate agents to criticize their colleagues for pushing their customers too hard to buy a home before the April 30 deadline for the Federal homebuyer tax credit.
Son of HAMP Learns from Experience
By: Steve Cook; Fri, Mar 26, 2010
The Administration's new effort to keep defaulting families in their homes by modifying their mortgages learned important lessons from problems encountered by its first effort, the Home Affordable Modification Program (HAMP).
Republicans Attack Obama Mortgage Modification Program
By: Steve Cook; Thu, Mar 18, 2010
The partisan attack on the program is the most public indication to date that the HAMP program may become a political liability for the Administration.
Tax Credit Stirs Sales in Local Markets
By: Steve Cook; Sat, Mar 13, 2010
Spurred by the pending demise of the federal homebuyer tax credit, buyers are awakening from their snowy winters' nap.
Mortgage Rates Rise on Cue
By: Steve Cook; Thu, Feb 25, 2010
With four more weeks of mortgage surveys to go before the full psychological impact kicks, we'll know whether Freddie's rates are a trend or an anomaly.
Obama Aids Big Bust States
By: Steve Cook; Fri, Feb 19, 2010
However, the latest foreclosure data shows foreclosure rates are falling in three of the five states where he is sending the aid but rising in heartland states which have not previously experienced widescale foreclosures
Homebuyer Tax Credit Warms up Spring Home Sales
By: Steve Cook; Tue, Feb 16, 2010
Record snows may still clog driveways and carpet lawns with ice but the spring real estate market is kicking off across the country earlier than normal as buyers push to make the April 30 tax credit deadline.
“The Federal Government Has Become the Mortgage Market”
By: Steve Cook; Tue, Feb 9, 2010
Federal programs now stretch from origination to guarantor to securitization and finally to domination of mortgage backed securities markets.
Fed Official Hints at More MBS Purchases
By: Steve Cook; Fri, Feb 5, 2010
As the Federal Reserve Bank of New York completed its latest purchases of mortgage backed securities to prop up mortgage interest rates, its president went public with hints that the Fed would consider reopening its soon-to-end program if interest rates spiked or the economy showed new weakness, The Fed is buying $1.25 trillion in mortgage-backed securities [...]
FTC Bans Up-front Fees for Mortgage Modification
By: Steve Cook; Thu, Feb 4, 2010
The Federal Trade Commission moved to protect distressed homeowners from bogus foreclosure rescue and mortgage modification services...
Obama Budget Limits Mortgage Interest Deductions…Again
By: Steve Cook; Wed, Feb 3, 2010
The fiscal year 2011 budget submitted to Congress this week by the Obama Administration caps the value of itemized deductions based on income, effectively eliminating the mortgage interest deduction for single taxpayers making more than $200,000 a year , $250,000 for joint returns.
Homebuyer Tax Credit Deadline Freezes Out Short Sales
By: Steve Cook; Wed, Feb 3, 2010
Time is running out on homebuyers interested in buying hundreds of thousands of affordable homes, as much as 20 percent of the inventory in high foreclosure markets, and still qualify for the homebuyer tax credit.
Illegal Aliens Suspected of Massive First-time Homebuyer Tax Credit Fraud
By: Steve Cook; Fri, Jan 29, 2010
In Texas, 1,000 applications for the tax credit have been filed by people employing a special taxpayer identification number that is used primarily by illegal immigrants.
State Homebuyer Tax Credits Sweeten the Pot at Tax Time
By: Steve Cook; Wed, Jan 13, 2010
First-time homebuyers in California, Texas, New York and Kentucky will have bigger smiles on their faces than those in other states when they do their taxes this year.
There’s a Land Rush on USDA Housing Loans
By: Steve Cook; Wed, Jan 6, 2010
As more and more suburban and exurban buyers figured out how to qualify and an infusion of stimulus funds made more direct and guaranteed loans available, the program doubled its volume last year, making 27,871 loans for the year.
Countdown to Change in 2010
By: Steve Cook; Mon, Dec 28, 2009
As clocks tick down on 2009, its not hard to foresee big changes in store for home buyers and home sellers in the early months of the new year.
How Your Tax Credit Can Pay Your Down Payment and Closing Costs
By: Steve Cook; Tue, Dec 22, 2009
To help buyers who want down payment and closing cost assistance, including those who qualify for the Federal homebuyer tax credit, 19 state housing finance agencies (HFAs) offer special short-term second loans.
Coldwell Banker’s Gillespie Looks Beyond the Tax Credit
By: Steve Cook; Thu, Dec 17, 2009
No doubt the tax breaks for both first-time and existing buyers will mean a lot of business for real estate brokerages, but Coldwell Banker is also focused on what happens after credits expire next spring.
Only Four Percent of Homeowners Get Obama Loan Modifications
By: Steve Cook; Fri, Dec 11, 2009
Nine months after the program launched, only four percent of homeowners participating in the government's Making Home Affordable program have successfully had their mortgages modified.
Failures Cripple Obama Loan Modification Program
By: Steve Cook; Tue, Dec 8, 2009
As many as 85 percent of delinquent mortgages are failing the Administration's loan modification process.
FHA Moves Upscale
By: Steve Cook; Mon, Dec 7, 2009
The Federal Housing Administration is transforming itself from a lender of last resort serving mid to lower income borrowers into a more expensive lender with a safer, more upscale portfolio.
Treasury Tweaks Short Sale Incentives to Cut Foreclosures
By: Steve Cook; Wed, Dec 2, 2009
This week the Treasury Department released new rules that will help homeowners who need to sell but can't get a price high enough to pay off their mortgage.
FHA and Ginnie Mae Kick Out Lend America
By: Steve Cook; Tue, Dec 1, 2009
Yesterday the Federal Housing Administration (FHA) and the Government National Mortgage Association (Ginnie Mae) today withdrew approval for Lend America to participate in the FHA single family insurance program.
Once Again, Administration Tries to Save Foreclosure Program
By: Steve Cook; Mon, Nov 30, 2009
The Treasury Department and the Department of Housing and Urban Development (HUD) today announced their third attempt to breathe life into the Obama Administration's ailing Home Affordable Modification Program (HAMP).
Judge Wipes Out Mortgage, Shocks Lending Industry
By: Steve Cook; Fri, Nov 27, 2009
Last week’s ruling by a Suffolk County, New York judge wiping out $525,000 in mortgage debt has sent shudders throughout the lending industry.
Frank Wants $2 Billion to Stop Foreclosures
By: Steve Cook; Mon, Nov 23, 2009
Chairman Barney Frank (D-MA) is pushing to use left over TARP money to help unemployed homeowners stave off foreclosure
The Last Days of the Homebuyer Tax Credit
By: Steve Cook; Wed, Nov 18, 2009
This is it. No more extensions. When April 30 comes and goes, the tax credit for everyone is over and buyers have only until June 30 to close.
FHA Should Weather Loan Losses
By: Steve Cook; Fri, Nov 13, 2009
Under most scenarios the agency should be able to continue to fulfill its mission of facilitating the market's recovery.
New Homebuyer Tax Credits Light Up the Holidays
By: Steve Cook; Fri, Nov 13, 2009
Home sales activity across the country is picking up even though we are entering a period when sales usually slow down as the holidays approach.
Short Cuts Short Out Treasury’s Loan Modification Program
By: Steve Cook; Wed, Nov 11, 2009
Short cuts, including lack of documentation by borrowers, are crippling the Obama Administration's loan modification program and threatening to significantly reduce the more than 650,ooo loans currently in the trial phase of the program.
How the New Homebuyer Tax Credit Works
By: Steve Cook; Fri, Nov 6, 2009
The extension and expansion of the homebuyers tax credit that passed Congress November 5 allows more first-time buyers to qualify and creates an entirely new credit for existing homeowners who buy a new home.
Congress Passes Homebuyer Tax Credit
By: Steve Cook; Thu, Nov 5, 2009
The House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.
Homebuyer Tax Credit Overly Generous
By: David Lereah; Wed, Nov 4, 2009
The great debate surrounding the fate of the first-time homebuyer tax credit appears to have ended on a good note; at least for the millions of households ready to purchase a home.
Homebuyer Tax Credit Will Motivate First-time Buyers More than Move-up Buyers
By: Steve Cook; Wed, Nov 4, 2009
The first-time homebuyer tax credit would do more to defray the purchase price of a starter home than the move-up buyer credit would do for existing homeowners buying a new home.
Senate Clears Homebuyer Tax Credit Extension to Pass This Week
By: Steve Cook; Tue, Nov 3, 2009
The Senate last night cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers, making it virtually certain that the legislation will reach President Obama for his signature this week.
Sales Fade As First-Time Buyers Give Up on Credit
By: Steve Cook; Mon, Nov 2, 2009
With less than thirty days to go until the first-time homebuyer tax credit expires, home sales are starting to fade as buyers give up on making the November 30 deadline.
Move-up Buyers to Get Homebuyer Tax Credit
By: Steve Cook; Thu, Oct 29, 2009
The deal struck among key senators last night to extend the homebuyer tax credit will broaden the benefit to include existing homeowners who are buying a new home as well as first-time homebuyers.
Obama’s Refinancing Program Fails to Reach Troubled Homeowners
By: David Lereah; Mon, Oct 26, 2009
According to a recent report, the refinancing part of Obama's Home Affordable program has failed miserably.
“Loan Modification Scam Alert” Targets Scam Artists
By: Steve Cook; Mon, Oct 26, 2009
The campaign, “Loan Modification Scam Alert,” was launched in Los Angeles , which consistently ranks among cities with the highest foreclosure rates and has the highest number of homes in foreclosure in the nation.
Four-Year-Olds Get Homebuyer Tax Credits
By: Steve Cook; Thu, Oct 22, 2009
Even though they were not old enough to buy a house, more than 580 children younger than 18 have claimed almost $4 million and received $627,000 in first-time homebuyer credits. Some were as young as four years old.
Fitch: Slowdown in Mortgage Modifications Won’t Last
By: Steve Cook; Tue, Oct 20, 2009
Though fewer borrowers received modifications in recent months, the delay will be short-lived and soon, according to Fitch Ratings in a new report.
White House Boosts Local Housing Programs
By: Steve Cook; Tue, Oct 20, 2009
The White House yesterday announced a new program to give lower income home buyers and renters a temporary boost in the marketplace.
Extend the Homebuyer Tax Credit
By: David Lereah; Sun, Oct 11, 2009
With the expiration date rapidly approaching, supporters of the first-time homebuyer tax credit fear that the housing recovery may stumble in the absence of this housing subsidy.
Dodd to Push for Six Month Homebuyer Credit
By: Steve Cook; Fri, Oct 9, 2009
The chairman of the Senate Banking Committee said yesterday he plans to attach an amendment that would extend the $8,000 first-time homebuyer's tax credit six months.
Hill Panel Says Foreclosure Program is Too Little, Too Late
By: Steve Cook; Fri, Oct 9, 2009
A congressional oversight committee yesterday questioned whether the limited scope and scale of the Administration's Making Home Affordable program (HAMP) will be capable of stemming the ever-increasing flood of foreclosures.
Both Mortgage Modifications and Criticisms Increase
By: Steve Cook; Thu, Oct 8, 2009
Nearly one month ahead of its self-set schedule, the government has reached the 500,000 mark for trial loan modifications under the Making Home Affordable program.
Brookings Economist Blasts First-Time Homebuyers Credit
By: Steve Cook; Mon, Sep 28, 2009
In an article and video published on the home page of the Brookings Institution, the co-director of the prestigious think tank's economic studies program says extending or expanding the first-time homebuyer tax credit will cost far more than the $15 billion of the current credit, likely in excess of an additional $30 billion.
Extending the Tax Credit Would Motivate 18 Percent of First-Time Buyers
By: Steve Cook; Thu, Sep 24, 2009
If Congress extends the $8,000 tax credit for first-time home buyers another year, about 18 percent of prospective first-time buyers, or 334,000 buyers, say taking advantage of the credit would be the primary reason they would buy a home next year, according to a new study released today by Zillow.com. About 25 percent of first-time buyers [...]
Geithner Says Financial Reform Will Reduce Costs and Risks
By: Steve Cook; Wed, Sep 23, 2009
Testifying this morning before the House Financial Services Committee, Treasury Secretary Geithner said the financial regulatory reform proposed by the Administration will include a new consumer financial protection agency that will protect consumers from unexpected risks and reduce the cost of compliance for lenders.
FHA Scrambles to Control Loan Losses
By: Steve Cook; Fri, Sep 18, 2009
The Federal Housing Administration today tightened credit restrictions to reduce the agency's exposure to risk and announced it was hiring a chief risk officer after the Washington Post reported the agency is rapidly running out of money due to loan losses and its cash reserves are in jeopardy of falling below falling below the minimum level set by Congress.
Opposition Grows to First-Time Homebuyer Credit
By: Steve Cook; Fri, Sep 18, 2009
Time is quickly running out on the first-time homebuyer tax credit, due to expire December 1 and despite an all-out lobbying campaign, the housing industry faces a battle to extend and expand it.
States and Feds Go to War Against Mortgage Fraud
By: Steve Cook; Thu, Sep 17, 2009
Top Federal regulatory and law enforcement officials joined with attorneys general from 12 states in Washington today to go to war against financial predators who are practicing mortgage fraud against consumers, including financial rescue scams and loan modification fraud.
Government Actions Saved Refinancing Homeowners $2.3 Billion
By: Steve Cook; Wed, Sep 16, 2009
Homeowners who refinanced during the first six months saved $2.3 billion this year due to recent government actions to reduce mortgage rates, according to a new study by Mark Fleming, chief economist for First American CoreLogic. The study found the median individual monthly savings was $120, a 10.5 percent reduction from the median borrower's previous mortgage payment, and the total benefit to homeowners who refinanced in 2009 will grow to $11.5 billion over the next five years.
Obama Program Slows California Foreclosures
By: Steve Cook; Tue, Sep 15, 2009
For the first time since it was launched six months ago, the Administration's Home Affordable Modification Program (HAMP) is having a measurable impact on the rate of foreclosure filings in California, according to the latest report from ForeclosureRadar, a web site that tracks foreclosures California and four other Western states.
Foreclosures Will Overwhelm Government Efforts
By: Steve Cook; Fri, Sep 11, 2009
Even if the disappointingly slow Federal foreclosure program achieves the goals for which it was designed, the foreclosure crisis could be as bad in three years as it is today. A flood of new foreclosures generated by the double whammy of unemployment and resetting exotic loans will overwhelm the government efforts and impede recovery.
The Mortgage Interest Deduction is in Play
By: Steve Cook; Fri, Sep 4, 2009
First, there were hints during the campaign. Senator Obama's stump speech called for a more equitable tax system, which begins with a tax cut for most Americans-those making $75,000 to $100,000. Then it's paid for by possible increases for those making $200,000 to $250,000 or more. And the tax increases would include "closing loopholes."
Will Greed Kill the First-Time Homebuyers’ Credit?
By: Steve Cook; Wed, Aug 26, 2009
With less than three months left before it joins Cash for Clunkers in the ash bin of stimulus programs, will Congress act quickly enough to extend the first-time homebuyer tax credit another year?
Sales Surge as the Homebuyer Tax Credit Ticks Down
By: Steve Cook; Mon, Aug 17, 2009
With fewer than three and a half months left to close on a home before the $8000 first-time homebuyer tax credit expires, field reports suggest that a surge in sales is already underway and will drive sales up over the next two months.
Lenders Flunk First Foreclosure Program Report Card
By: Steve Cook; Tue, Aug 4, 2009
"Uneven" is a popular word in Washington. It means things aren't good, but it doesn't let on just how bad they might be. Best of all, it conveys none of the emotion that normal people use in their daily speech. "The data show that servicer performance has been uneven," said the Treasury news release accompanying the first monthly report card on the Making Home Affordable loan modification program, which was released today.
Match-up of the Fixes: Cash for Clunkers vs. Homebuyers’ Tax Credit
By: Steve Cook; Tue, Aug 4, 2009
It's hard to turn on a newscast these days without hearing about the Cash for Clunkers program and what it has done for the auto industry. It's also hard to resist the urge to make comparisons between Washington's two great fixes to stimulate the economy: C4C and the first-time homebuyers' tax credit. If you're thinking that the real estate industry needs a Cash for Clunkers program, you might match up of the two fixes to see if it makes sense. New Housing Forecasts available now at: http://www.realestateeconomywatch.com/category/housing-forecasts/forecasts/
Minorities and Foreclosures
By: Steve Cook; Mon, Aug 3, 2009
Increasing minority homeownership has been a national policy of both Republican and Democratic Administrations for decades, and for good reason. Traditionally, homeownership has been the path most families have taken to establish financial security. Moreover, homeownership has long been associated with such positive factors as safer neighborhoods and better neighborhood schools.
On the Foreclosure Front, It’s Woodshedding Time
By: Steve Cook; Thu, Jul 30, 2009
Back when people had woodsheds, "woodshedding" meant one of two things. People "went to the woodshed" to practice in private such public skills as singing, playing musical instruments and acting. Woodsheds also were the places fathers took their naughty children and got out the belt or hairbrush, a practice highly discouraged today.
One-third of Mortgage Defaulters Don’t Need Help
By: Steve Cook; Wed, Jul 22, 2009
Nearly one third of all homeowners who seriously default on their mortgages end up paying what they owe and don't need to renegotiate their loans, according to a new, massive study by economists at the Federal Reserve Bank of Boston.
Foreclosures: Time for Heat or Light?
By: Steve Cook; Fri, Jul 17, 2009
As long as Americans have owned homes and records have been kept, never have more families lost more homes to foreclosure than in the first six months of this year. The raw numbers in RealtyTrac's latest report are startling.
Reality Check for the Obama Foreclosure Plan
By: Steve Cook; Fri, Jul 10, 2009
Five months and 1,1 million foreclosures after President Obama announced the Making Home Affordable programs, the Administration has yet to identify a single borrower who has closed on a modified loan under the program, though at least one servicer reports approving 87,100 mods.
Homeowner Bailout Program Expands
By: David Lereah; Wed, Jul 1, 2009
The Obama administration is expanding its Home Affordable program to permit more borrowers who hold underwater mortgages to participate in refinancings. The program could end up costing taxpayers.
Public Utilities Numbers One and Two
By: Steve Cook; Sun, Jun 21, 2009
Listening to the policy makers who will decide the fates of Fannie Mae and Freddie Mac brings home the reality of how far these once mighty pillars of residential real estate finance have fallen-and that they will never rise again to their former glory.
Skin in the Game
By: Steve Cook; Sat, Jun 20, 2009
Skin in the game means having a stake or a vested interest. Two of the most powerful members of the House on housing policy told a group of real estate journalists Friday that originators having skin in the game is the single most important feature affecting housing finance in the regulatory reform legislation now before the House Financial Services Committee.
HUD Secretary Shoots for Millions of Loan Mods
By: Steve Cook; Thu, Jun 18, 2009
The Administration's loan modification program is aiming for millions of mods over its three year lifespan, HUD Secretary Shawn Donovan told a conference of real estate journalists today and there are 200,000 trial modifications in process right now, 40,000 were added in the last week alone .
California Credit Moves the Needle
By: Steve Cook; Mon, Jun 15, 2009
As the housing lobby revs up for another push to expand the first time homebuyer tax credit (See ), it can point to the runaway success of California's $10,000 credit for newly built homes.
Take Another Look at May Foreclosures
By: Steve Cook; Fri, Jun 12, 2009
The May foreclosure numbers from Realty Trac show a six percent decrease in Foreclosure filings—default notices, scheduled auctions and bank repossessions—over April and several media outlets decided the report was good news.
CEOs Launch New Drive for Expanded Homebuyer Tax Credit
By: Steve Cook; Wed, Jun 10, 2009
Just six months after Congress came within a whisker of getting a $15,000 tax credit for first-time home buyers, a group of chief executive officers in the real estate, building products and home goods industries are mounting a new effort to expand the credit from its current $8,000 maximum and make it available to all buyers, not just first-timers.
HUD Tweaks First-Timer Credit
By: Steve Cook; Mon, Jun 1, 2009
HUD announced last week it has found a creative way to made the $8,000 federal tax credit for first-time home buyers even more useful than it was when passed by Congress last February.
Jumbos Go to Washington
By: Steve Cook; Tue, May 19, 2009
Just when it looked as though the jumbo business was coming back to life, Realtors and are mounting a lobbying campaign to get Congress to lower their cost by making permanent the current rules for determining limits that apply in 2009, use the Term Asset-Backed Securities Loan Facility (TALF) to buy jumbo loans,.
Major Lenders Implement “Making Home Affordable”
By: Steve Cook; Fri, May 15, 2009
Making Home Affordable, the Administration's program to reduce foreclosures through refinancing, modification of loans held by borrowers in trouble, and lowered interest rates, is finally moving ahead with critical loan modifications after hitting a snag over how to handle secondary liens.
Freddie Gears Up
During the first quarter, Freddie Mac helped about 40,000 borrowers avoid foreclosure by modifying or refinancing their mortgages so that they can either stay in their homes or sell them.
First-timer Tax Credit is Working
By: Steve Cook; Tue, May 5, 2009
Looks like last year's first-time homebuyer tax credit-the one the housing industry pooh-poohed because it required buyers to pay it back over 15 years-is doing a lot better than most people expected.
Cram Downs Fade Away
Four months ago they were just about the only part of the new Administration's foreclosure policy that seemed to be going anywhere.
Second Lien Compromise Puts Obama Plan Back on Track
Second lien servicers and investors are the big winners in changes to the Administration's loan modification program announced April 28.
HOPE for Homeowners
By: Steve Cook; Sat, Apr 11, 2009
The HOPE for Homeowners program helps those at risk of default and foreclosure refinance into more affordable, sustainable FHA loans. H4H is an additional mortgage option designed to keep borrowers in their homes.
FHASecure
By: Steve Cook; Sat, Apr 11, 2009
Purpose: To help an estimated 240,000 borrowers who were steered into high-cost adjustable rate mortgage (ARM) loans with teaser rates refinance into a safe, affordable FHA mortgage product that will help build wealth.
Making Home Affordable
By: Hristina Toshkova; Sat, Apr 11, 2009
Making Home Affordable is a plan to stabilize the housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels.
States Woo Buyers with Tax Credits.
By: Steve Cook; Tue, Mar 17, 2009
California new home buyers now have an $18,000 reason to get off the fence. That’s how big a tax credit they will receive from both the Federal ($8,000) and a new state tax credit ($10,000) when they buy a newly built home in the Golden State after March 1.
Cram Downs Cool Down
By: Steve Cook; Tue, Mar 17, 2009
An intense lobbying campaign by the financial services industry has slowed and possibly killed legislation that would give bankruptcy courts the power to write down mortgages
New Foreclosure Program At a Glance
By: Steve Cook; Tue, Feb 24, 2009
A new refinancing program will help four to five million homeowners with less than 80 percent equity and who hold conforming loans owned or guaranteed by Fannie of Freddie allows them to refinance at current rates.
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