Foreclosure Starts on Prime, Fixed-Rate Loans Fuel Another Record High in Mortgage Delinquencies
Prime, fixed-rate loans account for one in three foreclosure starts: MBA
August 20, 2009, MarketWatch
Residential mortgages either in foreclosure or with at least one payment past due hit 13.16% in the second quarter, the highest percentage ever recorded by the Mortgage Bankers Association, the industry group reported on Thursday."As a sign that mortgage performance is once again being driven by unemployment, prime fixed-rate loans now account for one in three foreclosure starts. A year ago they accounted for one in five. While 41 states had increases in the foreclosure start rate for prime fixed-rate loans, 43 states had decreases in that rate for subprime adjustable-rate loans."
August 20, 2009, Reuters
A federal judge has ruled that Bank of America Corp (BAC.N) cannot have a lawsuit by investors seeking to force it to buy back mortgages heard in federal court, saying he lacks jurisdiction to decide the case. The ruling is a win for investors, to the extent that Holwell rejected a claim by the bank's Countrywide Financial Corp unit that new federal laws to encourage loan modifications to help struggling borrowers stay in their homes govern this case.
August 19, 2009, WFTV.com
OSCEOLA COUNTY, Fla. -- The foreclosure crisis is so bad in Osceola County that leaders are willing to hand people up to $30,000 a piece just so they'll buy foreclosed homes. The county has plans to use $14 million in federal neighborhood stabilization dollars to give down payment assistance to buyers willing to purchase a foreclosed home. Other cities are using their stimulus dollars to rehab and re-sell foreclosed properties. Osceola County is hoping, by giving money to homeowners, they'll be more likely to buy a foreclosed home.
August 18, 2009, Reuters
Credit card loan defaults, which have risen sharply in recent months and which many analysts feared could rival mortgages as a headache for banks, could peak sooner than widely expected.