Recession eases; GDP dip smaller than expected
Recession eases; GDP dip smaller than expected
July 31, 2009, Associated Press
WASHINGTON – The economy sank at a pace of just 1 percent in the second quarter of the year, a new government report shows. It was a better-than-expected showing that provided the strongest signal yet that the longest recession since World War II is finally winding down.
Double-digit unemployment hits 41 markets
July 30, 2009, Houston Business Journal
What a difference a year makes. Forty-one of the nation’s 100 major labor markets are now saddled with double-digit unemployment rates, according to newly released figures from the U.S. Bureau of Labor Statistics. A year ago all 100 markets were in single digits. The highest jobless rate as of mid-2008 was 9.6 percent in Fresno, Calif. Fresno is now up to 15.2 percent unemployment, and one market is even higher. Detroit’s current rate is 17.1 percent.
Arizona Senator calls for repeal of his foreclosure bill allowing lenders to go after deficiencies
July 29, 2009, Arizona Republic Real Estate Blog
Legislation makes many homeowners in foreclosure liable to lenders for the difference between their mortgage and what a lender can recoup from selling the home. f it isn’t repealed in the current session, the bill becomes law on Sept. 30th. Valley real estate attorneys say they are already receiving calls from out-of-state lenders asking about the legislation and if it will help them recoup losses on foreclosures. Lenders have said they will hold off on some foreclosures until after Sept. 30th to go after borrowers’ other assets.
California's default rate soars to 9.5%
July 31, 2009, Los Angeles Times
About 1 in 10 Californians with a home loan is now in default, and there's growing evidence that the mortgage meltdown is spreading to commercial real estate.
The home mortgage delinquency rate -- the percentage of borrowers who have missed several payments and are in the first stage of foreclosure -- climbed in June to 9.5% in California and 9.9% in Los Angeles County, according to First American CoreLogic.
Deutsche Bank Chief Expects ‘Next Wave’ of Defaults
July 31, 2009, The New York Times DealBook blog
Deutsche Bank Chief Executive Josef Ackermann said that rising delinquencies among consumer and corporate borrowers are the “next wave” of the financial crisis and may affect banks that have avoided losses so far, Bloomberg News reported.
FHA announces plan to modify troubled mortgages
July 30, 2009, Seattle Post-Intelligencer
The Obama administration's plan to help homeowners rework unaffordable mortgages has excluded a major source of home loans -- until now.
U.S. Housing and Urban Development Secretary Shaun Donovan announced Thursday that the Federal Housing Administration was bringing its mortgage modification program in line with the administration's Making Home Affordable program, creating a new FHA-Home Affordable Modification Program. The agency has released a mortgagee letter and guidelines, and expects all servicers to implement the changes by Aug. 15.