Are Banks Holding a Shadow Inventory of Homes?

Are Banks Holding a Shadow Inventory of Homes?
The Wall Street Journal

The number of homes listed for sale in several housing markets fell last month to levels last seen at the start of the housing downturn. That’s raising hopes that several of the hardest-hit housing markets may be stabilizing.

But the housing cynic may wonder: how much does that have to do with banks holding foreclosed properties off the market to prevent a new glut of properties from hitting the market?

Survey shows lenders still cautious
Inman News

Nearly three out of four major U.S. banks tightened their underwriting standards for residential mortgage loans in the 12 months ending March 31, and one in five discontinued or planned to discontinue one or more retail mortgage products.

While not unexpected, those and other findings of an annual survey by the U.S. Office of the Comptroller of the Currency demonstrate the extent of a second consecutive year of tightened lending standards following four years of eased underwriting.

US mortgage applications climb but job fears weigh
Reuters

NEW YORK - U.S. mortgage applications rose despite a jump in borrowing costs last week, but still bounced around the year's lows with unemployment fears depressing demand.

The Mortgage Bankers Association's total loan applications index rose by a seasonally adjusted 2.8 percent to 528.9 last week, even as 30-year mortgage rates rose by about 1/4 percentage point to 5.31 percent.

Freddie Mac Taps Finance Veteran as Fourth CEO in a Year
The Washington Post

Freddie Mac named Charles E. Haldeman Jr. on Tuesday as its new chief executive, the fourth person in a year to hold the top job at the federally controlled mortgage finance giant.

After a year of tumult at McLean-based Freddie Mac, Haldeman will oversee the direction of the company as Congress and the Obama administration mull how to restructure it and its larger rival, District-based Fannie Mae. The government seized both companies in September, installed new leadership and has since been using them to prop up the housing market.

Doubts Slow Financial Regulation Overhaul on Capitol Hill
The Wall Street Journal

WASHINGTON -- The Obama administration's effort to swiftly overhaul supervision of financial markets is running into trouble on Capitol Hill, with some Democrats balking at key elements of the plan.

Democrats are unsure they can muster enough votes to support the administration's plan to create a new consumer-products regulator, and expand the powers of the Federal Reserve. On Tuesday, Massachusetts Democratic Rep. Barney Frank, who chairs the House Financial Service Committee, delayed until September a vote on a regulator to oversee consumer products, such as mortgages and credit cards.