Prime Jumbo Trouble: The Foreclosures Keep Coming

Prime Jumbo Trouble: The Foreclosures Keep Coming
The Wall Street Journal

The volume of loans entering foreclosure and the rates of foreclosure starts showed no signs of slowing in July, even amid signs that early stage delinquencies may be slowing. Foreclosure starts increased by 7.1% in July, the second highest month on record, according to a monthly report by LPS Applied Analytics.

Among the report’s key conclusions: Foreclosure rates on prime jumbo loans, granted to borrowers with good credit and too large for backing from government agencies, surpassed the 2.98% average for all loan types in July, and continue to rise faster than any other loan type. Prime jumbo foreclosure rates are up a staggering 634% versus January 2008 levels, according to LPS Applied Analytics.

Capitalizing on Foreclosures
The New York Times - Video

Amos Collins, a New Zealand native, sells houses in heavily foreclosed Riverside County, Calif. Although the region's economy is struggling, he is doing brisk business.

New Data Suggest Foreclosure Mitigation Efforts Growing
MBA NewsLink

Data from the HOPE NOW Alliance and Lender Processing Systems Inc. suggest that foreclosure mitigation efforts have yielded improved results in recent months.
HOPE NOW, of which the Mortgage Bankers Association is a founding member, reported that 1.77 million homeowners received workout assistance in July to avoid foreclosure. HOPE NOW estimates a 20 percent improvement in foreclosure mitigation activity from two years ago, when it began tracking data.

Fed Optimistic Recovery Is Ahead -- but Unsure How Far and How Strong
The Washington Post

Federal Reserve leaders have become more confident that the economy is stabilizing. But they are less sure about what the recovery will look like.

At an Aug. 11-12 meeting of the central bank's policymaking committee, top Fed officials agreed that improving economic data had "strengthened their confidence that the downturn in economic activity was ending," according to minutes of the meeting released Wednesday.

White House to Propose Big Reserves at Banks
The New York Times

Many banks are finally back on their feet. The question now is how to keep them there for good.

So after propping up lenders with billions of taxpayer dollars, the Obama administration is contemplating long-term measures aimed at preventing, or at least minimizing, any future financial crisis.