House, Senate approve legislation to protect against mortgage fraud
July 29, 2010 — PembrokeExpress.com

With home foreclosures continuing to rise in the Commonwealth in spite of the improving economy, Senate President Therese Murray (D-Plymouth) announced today that the Senate and House today sent final consumer protection legislation to the Governor that protects both homeowners and tenants from mortgage fraud and arbitrary evictions.

From housing bubble to jobless crater, America’s problems converge
July 29, 2010 — thestar.com

WASHINGTON—It is difficult to locate a silver lining in the latest prognosis for the battered American dream, with new data suggesting an unprecedented housing meltdown has slipped even more deeply into the crater of joblessness.

Bill to Extend Borrower Redemption, Tenant Rights Goes to Mass. Governor
July 29, 2010 — HousingWire

A bill on the desk of Massachusetts Gov. Deval Patrick would have far-reaching implications on the REO and mortgage industries, including a temporary provision adding five months to the foreclosure process.

Fiserv Predicts Home Prices to Drop Another 4.9% in Year Ahead
July 29, 2010 — DSNews

Despite recent increases in a number of the industry’s home price measurements, and even an uptick in the company’s own index of residential property prices, Fiserv Inc. says the gains will be short-lived. The Wisconsin-based information technology firm is forecasting home prices to fall by nearly 5 percent more over the next 12 months.

Fannie Mae portfolio grows, delinquencies decline
July 30, 2010 — Reuters

Fannie Mae (FNMA.OB) expanded it mortgage portfolio in June, while the rate of late payments on loans it guarantees fell in May, the largest U.S. home loan purchaser said on Friday.

Real estate's 5 stages of underwater grief
July 26, 2010 — Inman News

Most of us equate grieving with the emotional process that follows a death of a loved one. In fact, to grieve is to mourn and process any grave loss.

GSE Foreclosure Starts Start Coming Faster in 2010
July 27, 2010 — HousingWire

The level of foreclosures starts in mortgages owned by Fannie Mae and Freddie Mac, the government sponsored enterprises (GSE), is at its highest point ever in 2010 as the rate of new foreclosures continues to increase.

Apartment rentals surge on foreclosures, jobs
July 27, 2010 — Finance & Commerce

U.S. apartment landlords are seeing a surge in rentals as mounting foreclosures reduce homeownership and an improving job market for young adults encourages them to find their own places to live.

Big 4 Banks Add $9.5bn in Nonperforming, Foreclosed Properties in One Year
July 27, 2010 — HousingWire

Each of the "big-four" banks, Bank of America (BAC: 14.065 -0.88%), Wells Fargo (WFC: 28.11 -0.99%), JPMorgan Chase (JPM: 40.45 -0.59%) and Citigroup (C: 4.105 -1.32%) released quarterly earnings reports for Q210 in July, reporting a total increase of $9.5bn in nonperforming or foreclosed properties from the same quarter last year.

Home Prices Rise but Outlook for Sector Dims
July 28, 2010 — Wall Street Journal

Home prices rose in May but were expected to lose momentum with the expiration of federal tax credits, while consumer confidence sagged—both signs that the economic recovery remains fragile.

US mortgage demand dips, refis off from 14-mo high
July 28, 2010 — Reuters

U.S. home loan demand cooled last week as rising mortgage rates curbed refinancing requests that had soared to a 14-month high, the Mortgage Bankers Association said on Wednesday.

MIT-Harvard Study: Foreclosure drops house value by 27%
July 26, 2010 — HousingWire

A foreclosure reduces the value of a house by 27%, on average, and accounts for a much steeper price drop than other forced sales, according to a study by an Massachusetts Institute of Technology (MIT) economist and two Harvard University researchers.

Illinois lawmakers have 2nd thought about foreclosure bill
July 27, 2010 — Chicago Tribune

Chicago's collar counties are bracing for millions of dollars in lost revenue if Gov. Pat Quinn signs a bill that would give banks the choice to hire private companies to handle the growing number of home foreclosures across northern Illinois.

Supply of Homes Set to Grow
July 27, 2010 — Wall Street Journal

Sales of new homes are near 47-year lows, yet the supply of new and existing homes is expected to grow in the months ahead as construction ramps up and a wave of foreclosed homes hits the market.

Don't hold your breath for a bounce in home prices
July 26, 2010 — Associated Press

WASHINGTON — Thought the housing crisis was over? Not quite.

D.C. area housing market relatively insulated from downturn, report finds
July 27, 2010 — Washington Post

While the nation's housing market struggles amid a sudden downdraft that has once again battered sales, the Washington region appears relatively insulated and poised for a turnaround.

Home Inventory Rises as Sales Fall
Wall Street Journal, July 23, 2010

Sales of existing homes declined in June while the inventory of unsold homes rose, a combination that doesn't bode well for prices in the months ahead. In its monthly report on home-sale transactions on Thursday, the National Association of Realtors said sales were running at a seasonally adjusted annual pace of 5.37 million last month, down 5.1% from May but up 9.8% from one year ago. Home sales surged in the spring as buyers rushed to take advantage of tax credits worth as much as $8,000. To qualify, buyers had to sign purchase contracts by April 30.


Uneven Rebound in the Housing Market
Wall Street Journal, July 22, 2010

Home values in major Bay Area cities are rising again. But a look at homes sold here at the height of the bubble and again in recent months gives an up-close view of how much the region's housing market remains off its peak and shows how widely individual homeowners' experiences have varied. In an analysis conducted for The Wall Street Journal, real-estate website Zillow.com identified all homes in three cities—Berkeley, San Francisco and San Jose—that sold during the local market's peak quarter and again during the three-month period ended in May 2010.


Governments Focus on Foreclosed Homes
Las Vegas Sun, July 23, 2010

Local governments in Southern Nevada are cracking down on owners of vacant homes and are encouraging banks to foreclose on homes more quickly before they fall into disrepair. Some recent moves have upset investors, who fear they will have to pay more to acquire homes through the foreclosure process or that the homes will remain on the market because of prohibitive liens. Clark County adopted a code in June that requires owners to submit a plan for rehabbing their properties or face a $1,000-a-day penalty, said Joe Boteilho, the county’s chief code enforcement officer. The county has the authority to place a lien on the property if the penalties aren’t paid, he said.


Idea to Reduce Principal is Gaining
Sacramento Bee, July 16, 2010

Almost since the housing meltdown began, advocates for struggling homeowners have said reducing principal is the big solution. Knock down what people owe, and they'll stay in their houses. Now, even Nobel Prize-winning economist Joseph Stiglitz calls it the “best option for the country.” In a new book, “Freefall,” he says principal reduction “changes the incentives to default, and means that fewer home mortgages are underwater.” Now, however, the California Housing Finance Agency in Sacramento is poised to become a national test case for principal reduction. It has $420 million in hand from the Treasury Department to lower borrowers' principal by $50,000 per house. Banks are being asked to match that amount. The experiment begins Nov. 1.

Housing Market Stumbles
Wall Street Journal, July 21, 2010

The housing market, whose collapse pulled the economy into recession in late 2007, is stalling again. In major markets across the country, home sales are deteriorating, inventories of unsold homes are piling up and builders are scaling back construction plans. The expiration of a federal home-buyers tax credit at the end of April is weighing on the market. On Tuesday, the U.S. Census Bureau said single-family housing starts in June fell by 0.7%, to a seasonally adjusted annual rate of 454,000. The U.S. started 1.47 million homes in 2006, before the housing bubble popped.


Anti-Foreclosure Program Still Sputtering
Wall Street Journal, July 21, 2010

The federal government's foreclosure-prevention effort continued to sputter, as the number of homeowners leaving the program exceeded those who received new loan modifications for the second straight month. More than 91,000 homeowners cancelled their government loan modifications in June, while just 38,728 received new modifications, according to data released Tuesday. Almost 530,000 of the nearly 1.3 million government modifications have been cancelled since the program began last March. Dropouts climbed as homeowners missed payments on their modified loans or failed to turn in required paperwork.


Housing Still Built on Sand
Barron’s, July 20, 2010

I’m always surprised that anyone is surprised by certain phenomena. The National Association of Home Builders reported Monday that its measure of its members' confidence fell to 14 in June, the lowest level since April 2009 and well below forecasters' guesses. Why the latter was so was mystifying. The conventional, ex-post explanation was that homebuilders were bummed by the end of the federal government's tax subsidy for certain first-time and other home buyers at the end of April. As if nobody knew that would happen. Builders would have to reduce building houses and condominiums after they wrung all the business they could from those receiving the largesse of up to $8,000 from the taxpayers—that is, you. Surprise? Even the slow learners in Congress realize that this give-away did nothing to stimulate demand — and by extension, boost supply — of newly built structures. The subsidy only affected the timing of purchases, not their total.


Relief Effort Fails Many at Risk of Foreclosure
Associated Press, July 20, 2010

The Obama administration's effort to help those at risk of losing their homes is failing to aid many and could spur a rise in foreclosures that would further depress the housing industry. More foreclosures would force down home prices and that would deter already-ailing homebuilders from starting new projects. As a result, the economic rebound could suffer. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes paid to local and federal authorities, according to the National Association of Home Builders.


Banks Sell More Homes than Builders Do
Housing Intelligence, July 152010

In a quiet week for housing data, we’re reflecting on an interesting statistic that we are able to put together using Housing Intelligence Pro.  In looking at the annualized share of all home sales captured by different types of transactions, there are a few interesting turning points that stand out.  Back in 2005, your garden variety resale transaction accounted for more than 80% of all home sales.  By November of 2006 that had slipped slightly to 78% while New Homes accounted for nearly 20% of all transactions (a peak share).   Just over 2 years later in January of 2009, the new home share had slumped to 14%, and starting in that month there were more REO sales in the preceding 12 month period than new homes sold.  So for the last year and a half, banks have sold more houses than home builders have.  To see the trend, check out our chart below.


TARP Lending Programs Curtailed
Wall Street Journal, July 21, 2010

The Treasury Department, under Congressional orders to shrink and end sooner the much-maligned Troubled Asset Relief Program, plans to curtail two programs originally intended to help consumer and small-business lending. Treasury officials say they plan to end a long-delayed, never-utilized $30 billion program designed to boost small-business lending and cut the amount of money available for a Federal Reserve lending program. The Treasury will also stop creating any new programs to stabilize the financial sector.