Why a Foreclosure Fraud Settlement is a Ridiculous Idea

Why a Foreclosure Fraud Settlement is a Ridiculous Idea
By Matt Soller, Naked Capitalism, Nov. 1, 2011

Gretchen Morgenson is ringing alarm bells that a 50 state settlement on the foreclosure fraud issue is on deck, and is spelling out some of the details. There would be some principal write-downs, random cash payouts for those who were foreclosed, and money to buy off nonprofits in the states that work on housing issues (a classic Fannie/Freddie Dem friendly tactic Morgenson and Rosner exposed nicely in their book Reckless Endangerment). The settlement looks vague and stupid, and will probably be executed with the care and competence of HAMP. But let’s put that aside.

Underwater Rescue
By The Economist, Oct. 29, 2011

Sometimes the best stimulus is not the biggest, but the one that’s possible. While Barack Obama has been haranguing Congress, without success, to pass his $447 billion stimulus plan, a more modest effort paid off on October 24th when the Federal Housing Finance Agency (FHFA), the regulator of Fannie Mae and Freddie Mac, the two big mortgage-finance companies, made it easier for borrowers to lower the rates they pay on their mortgages.

Home Prices Heading for Triple-Dip
By Les Christie, CNN Money, October 31, 2011

The besieged housing market has even further to fall before home prices really hit rock bottom.
According to Fiserv, a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.

Can Foreign Buyers Save the U.S. Housing Market?
By Meg Handley, U.S. News & World Report, Oct. 28, 2011

Ultra-low and declining home prices are a headache for homeowners, but they might also be the key to healing the housing market as foreign investors snap up real estate bargains in the United States. Also, read: “Canadians find refuge in Phoenix.”