Lawmakers Battle Over Foreclosure Remedies
June 20, 2010, Press Enterprise
The number of mortgage defaults and home foreclosures is falling in the Inland area and around the state, but the tug of war between the lending industry and people pushing for new borrower protections is still going strong at the state Capitol.
Cost of Seizing Fannie and Freddie Surges for Taxpayers
June 19, 2010, New York Times
Fannie Mae and Freddie Mac took over a foreclosed home roughly every 90 seconds during the first three months of the year. They owned 163,828 houses at the end of March, a virtual city with more houses than Seattle. The mortgage finance companies, created by Congress to help Americans buy homes, have become two of the nation’s largest landlords. For all the focus on the historic federal rescue of the banking industry, it is the government’s decision to seize Fannie Mae and Freddie Mac in September 2008 that is likely to cost taxpayers the most money. So far the tab stands at $145.9 billion, and it grows with every foreclosure of a three-bedroom home with a two-car garage one hour from Phoenix. The Congressional Budget Office predicts that the final bill could reach $389 billion.
US Senate Candidate Rubio Faces Fla. Foreclosure
June 21, 2010, Associated Press
Republican U.S. Senate candidate Marco Rubio and another Miami politician are facing foreclosure on a Tallahassee home they co-own for failing to make mortgage payments since January, Leon County court records show. The Deutsche Bank National Trust Company initiated foreclosure proceedings on the home owned by Rubio and state Rep. David Rivera, who is running for Congress. Rubio, a former state House speaker, and Rivera lived in the home when they were in Tallahassee for legislative sessions and other business. Rubio's campaign said Friday that the matter is being resolved. Rubio spokesman Alex Burgos said Rubio and Rivera stopped making payments during a dispute with the bank over terms of the mortgage.
Housing Double-Dip to Slow Economic Recovery: Whitney
June 21, 2010, CNBC
The US economy faces a perilous second half as a new set of problems hits real estate and thwarts any chance for a strong recovery, banking analyst Meredith Whitney told CNBC. The primary reason she cited for another leg down in housing is that banks are getting more aggressive foreclosing on delinquent borrowers. That in turn will push more inventory into the market, pressuring prices and ensuring that economic growth will be tepid at best."Banks are actually accelerating their foreclosure programs, accelerating their short-sale programs. People who have been paying their mortgage now have to start paying rent," Whitney said. "You'll see a real leg down in supply displacement when you foreclose and you have to sell."