U.S. Considering Foreclosure Ban

U.S. Considering Changes Before Foreclosures
February 25, 2010, New York Times

The Obama administration, under intense pressure to help millions of people in danger of losing their homes, is considering a ban on foreclosures unless they have first been examined for potential modification, according to a set of draft proposals. That would raise the stakes from the current practice, which strongly encourages lenders to evaluate defaulting borrowers for a modification but does not make it mandatory. Meg Reilly, a Treasury Department spokeswoman, said Thursday that the proposed foreclosure ban was “one of the many ideas under consideration in the administration’s ongoing housing stabilization efforts.” The proposal was first reported by Bloomberg News.

January Home Sales Fall 7.2 Percent
February 26, 2010, The Associated Press

Sales of previously occupied homes took a large drop for the second straight month in January, falling to the lowest level since summer. It was another sign the housing market's recovery is faltering. The National Association of Realtors says sales fell 7.2 percent to a seasonally adjusted annual rate of 5.05 million from a downwardly revised pace of 5.44 million in December. The results were far worse than forecast. Economists expected a slight increase to a rate of 5.5 million.

Lawmakers Question Obama Loan Help Effort
February 25, 2010, The Associated Press

Lawmakers are taking aim at the Obama administration's struggling mortgage assistance program, with Republicans calling it a worthless exercise and Democrats saying it doesn't go far enough. In a report Thursday, Reps. Darrell Issa, R-Calif. and Jim Jordan, R-Ohio., called the program a misuse of taxpayer money. Though $75 billion has been set aside for the program, so far only $15 million has been spent. They also said it distorts the housing market by keeping people in their homes who would be better renting.

Cash Deals Make Up Half of Las Vegas Home Sales
February 24, 2010, Las Vegas Sun

Cash continues to be king when it comes to buying a home in Las Vegas. Research firm MDA DataQuick reported that cash buyers accounted for 50 percent of all home purchases in January, up from 39 percent in January 2009. Investors and second-home buyers comprised 43 percent of the home purchases in January, up from 34 percent in January 2009, the firm reported. The median price paid in the all-cash deals in January was $96,000.

Number of Banks in Danger of Failure Hits Highest Level Since 1993
February 23, 2010, Los Angeles Times

The number of banks in danger of failing shot up to 702 at the end of last year, the highest level since 1993, as the industry continues to struggle in its recovery from the so-called Great Recession, the Federal Deposit Insurance Corp. said Tuesday. The large number of "problem institutions" — up from 552 at the end of September — comes after 140 banks failed in 2009, a level not seen since the savings and loan crisis in 1990. Not all banks on the problem list fail, and FDIC Chairwoman Sheila Bair noted that the vast majority of the approximately 8,000 banks with insured deposits are healthy.