TULSA REAL ESTATE REALITY BY JILL PROBST

New Wave of Buyers In Tulsa

2011-06-19T11:56:00.002-05:00

New Buyers in Tulsa?? Can it be?? Of course it Can. This is a hot summer and a hot time for deals in real estate in Tulsa and Metro area market. Sellers with a marketable property have a very good chance of getting that deal made and there are only a few things to be aware of ahead of time.

Like what you ask? Most of the starter homes or first time home buyers are going to go strictly FHA. What that means for sellers is that you will have to pay a portion of their closing costs. Do sellers like paying closing costs? No. Generally as a rule most people who sell homes think that when looking for a home you should be able to put enough down to qualify for a conventional loan. Unfortunately for a buyer, it might just make sense to go for an FHA loan.

A rule of thumb I use to sell homes is that when you are speaking with a seller you must put them in the place of the buyer. How does your home look to a buyer? So why not in the area of finance? Of course you want your seller to understand the whys and why not of accepting an FHA offer. Sometimes it makes sense to pay some closing costs and seal the deal than to continue to make utility payments and insurance payments on a home that they can move and move on more importantly.

Does it make sense for everyone. No certainly not. Most sellers now are looking to strike why the iron is hot and move their home so that they can either downsize get out of a mortgage they may have been able to afford earlier but not now, or simply upgrade to a larger home for less money. So review all the aspects of the buyers options so you better understand what is possible when marketing a home today.

Now all that being said, is it taking long for homes to sell in the Tulsa area? No. Not if that home is move in ready and lots of times that home is staged if a vacant home. Some people cant see themselves in a home if it is vacant. Plus all the blemishes of a home can be seen if there is no one living in it. If a sellers home is updated and clean 8 times out 10 it will sell and sell fast. Buyers are now ready to buy and of course that is the right time to market your home.

So for more info on Tulsa and the surrounding metro contact a realtor today! And make it personal! Call me 9186197309!

2010-08-12T10:28:00.002-05:00

Here's a snippet I found :

Government to Spend $3 Billion to Help HomeownersBy Jeffry BartashRISMEDIA, August 12, 2010--(MCT)--The White House on Wednesday said it would spend an additional $3 billion to help distressed homeowners in the states with the highest jobless rates to pay their mortgages.The latest round of funding pushes the total federal commitment up to $4.1 billion. The government already runs two other programs to help homeowners modify existing mortgages or make their monthly payments. The White House is authorized to spend up to $50 billion to help homeowners under the Troubled Asset Relief Program originally created by the Bush administration to bail out Wall Street.So far, existing government programs designed to help people to stay in their homes have met with little success. The rate of property foreclosures climbed 8 percent to 1.65 million in the first six months of 2010 compared to the prior year, according to RealtyTrac.The new program is meant to prevent further home foreclosures in 17 states plus the District of Columbia. Most of those states have experienced a rash of foreclosures that have depressed the housing market and local economy.Eligible homeowners could receive no-interest loans up to $50,000 for as long as 24 months. They would have to show a good record of mortgage payment before their employment or medical condition changed. They would also have to demonstrate a "reasonable likelihood" of resuming mortgage payments within two years.The states with the highest foreclosure rates are Nevada, Florida and Arizona. Nevada and Florida would quality for fresh government assistance but not Arizona, which has slightly lower unemployment rate compared to the national average.Other states eligible for assistance are: Alabama, California, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.The federal Housing Finance Agency would distribute $2 billion through the so-called Hardest Hit Fund set up earlier this year. The Housing and Urban Development Department would also make $1 billion available via a new emergency program authorized by the recently signed Dodd-Frank law regulating the finance industry.The money would be given to homeowners who lost their jobs or cannot find enough work and are in danger of losing their homes. People whose medical conditions have also reduced their ability to work would also qualify under guidelines set by the Dodd-Frank law.Homeowners would apply for relief through their state housing agencies.Herb Allison, a senior Treasury official, said the goal of the program is to "stabilize a fragile housing market and allows responsible homeowners the chance to reduce their monthly mortgage payments to affordable levels."Critics say the relief programs are unfair to homeowners who are current on their mortgage payments. They also argue that much of the money is wasted because distressed homeowners usually default even after getting government help.The latest Treasury report shows that about 10 percent of distressed homeowners who received modified loans in the fourth quarter of 2009 are delinquent in their payments."The default rates are far better than most experts predicted," Allison said.The modification program, known as HAMP, helps homeowners to renegotiate with banks to reduce the size of their original mortgages, most of which are much higher than the current value of their homes.But only 39,000 homeowners were able to qualify for permanent modifications in June and just 400,000 have benefited since the program was enacted, according to government data. And a report by Fitch Ratings Ltd. suggests as many as three-quarters of the modified loans could end up in default once again.(c) 2010, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services.

Now its fantastic that the government is going to continue to help homeowners but what does that mean if you arent in a state where the situation is absolutely dire enough to meet the governments criteria? You do it the old fashioned way- Save your money. Look at your local market and speak with local lenders. No one is more knowledgable than a local lender on what they can loan. You might take a risk and look at foreclosures but again, there is risk involved with any foreclosure where you have no idea what disclosures should be made to a potential buyer. When looking at these situations CALL the experts. Markets can seem soft in certain dollar amounts but in others may have remained stable. If you dont know exactly what the numbers are you need to contact someone who can give them to you. Then after arming yourself with just exactly you need for your situation you can go and purchase that home you have always wanted.

Keep in mind there will always be homes for sale it is just a matter of timing and of course knowing what you are doing to get a good deal and a safe deal. If it is too good to be true then it most likely is too good. Whenever you make a deal in any market climate always be prepared to walk away from that deal if you go over your limit or feel that the situation has changed drastically from what you wanted to live with. This is a gut sign telling you that you are over your head. Now when looking at programs to help yourself get in a home there is no magical goverment site that can do it. Just pull out the phonebook at look up community groups and more than likely other than these stop gap measures that have been put in place to stem blood flow in other areas most hardest hit you can find programs that have been in place for years that will help educate you for a couple of hours and help you up to a certain percentage with a down payment on a home. Remember, the best thing you can do is to educate yourself on what you are about to do. Markets will fluctutate and the smart buyer will always know what the interest rate is and how his credit and savings will affect his buying power no matter what the current economic situation is around him.

Homes are a relationship that usually outlast marriages- so make sure you are ready for that commitment and understand the big picture, ie. not just the loan process, the closing process but responsibilities of a homeowner- repairs, maintenance and upkeep. And of course if you need help with any of these processes I will be happy to help! SO give me a call or shoot me an email and let s get you started to better educating yourself on being a homeowner in the best time in the real estate market- NOW.

Short Sales and Foreclosures

2010-08-03T06:59:00.003-05:00

Short Sales and Foreclosures are now more than ever in Tulsa and the surrounding areas becoming an increasing situation. Since our market is more stable than the national~ we dont see the huge increases and decreases that everyone else does all over the country, and therefore we tend to have steady increases with little decline. Of course that is not to say that our economy is not touched by the recession, layoffs or furloughs- that being said the number of short sales and foreclosures is significantly smaller than in other areas of the country. Oklahoma tends to not experience the effects of national issues for atleast a year or so behind. Are you one of those homeowners who possibly had your house listed right before all the craziness happened and then unfortunately could not get whomever held your mortgage to make a decision which then in turn made you a short sale possibility? Having had several clients that found themselves in this situation- you cant panic. Take copious notes and try to remain calm when calling the 1-800 numbers to talk to someone to try and work things out. Always recruit a realtor or talk plainly with your realtor so that they can help you get things rolling. Here are a few facts regarding short sales that might help you decide if this is the right option for you. As always you must check out your particular case with you mortgage company to see what policies they will follow in working with you to solve your housing dilemma.

A short sale is a lender approved solution designed to assist a home owner who is financially burdened to get out from under their mortgage debt. A short sale is negotiated through the mortgage holder of an owners home where by the mortgage holder agrees to take less than what home owner owes on their property. For instance, a short sale would be if a home owner owes $600,000 on their current mortgage and their home is only worth $550,000. The lender in this example would agree to take a short fall of $50,000 at closing.

In some cases the mortgage holder may completely wipe out the debt and the home owner does not have to repay the 50,000. Many lenders may require a seller to sign a note and repay the debt over a certain amount of time. Typically the debt will be reduced and the owner may receive favorable repayment terms of the short fall. Also you may qualify for other programs that your lender has that may not hurt your credit as bad as a short sale or foreclosure so it is always important to ask about all your options with your lender.

Many consumers make extremely poor choices by getting behind and not picking up the phone to contact, or email - snailmail their mortage holder. You must be aware of the huge penalties involved when not facing the realities of the short sale/foreclosure world. Here are a couple of specific items related to short sales that you should be aware of if you find yourself in the short sale position.

Should I stop making payments on the loan when I am in a short sale situation?

Whether or not a home owner should continue to make mortgage payments is a common question that many sellers want to know when considering a short sale. The most common answer to this question is YES, however it really depends on the lender! Find out from your lender Before you stop making payments to ensure that this will not adversly affect you and the outcome of the short sale.

Picking the Right Realtor to Help You

Picking a Realtor to work with in a short sale is very different than a traditional transaction. You want to work with an agent that has experience successfully closing this type of transaction. Remember as a seller you could potentially be facing a foreclosure. There are many mistakes that are made by agents handling short sales. If you are not sure whether or not your broker/agent understands the short sale or foreclosure then STOP. Check with other brokers to ensure that the agent you pick is qualified to help you with your situation. And every situation is different when it comes to short sales.

Acceptable hardships for a short sale

Most of the time lenders will ask the homeowner to fill out a hardship letter detailing the reason for the hardship and supporting documentation as to why you cant make the payments. Short sale hardships however, have become less rigid recently and some lenders are becoming more concerned strictkly on whether the short sale would benefit them more than a foreclosure sale.

Short sale tax consequences

Understanding the tax consequences in a short sale is one of the most important considerations for a home seller. Whether the short sale home was a primary residence or an investment property can have different tax implications.

Releasing the Debt on a Short Sale

Getting the debt released on a short sale is obviously a very big deal. Many Realtors that are working with short sales don't have any knowledge of how to get the debt released. A seller needs to pay particular attention to this detail as you can expect to be hearing from a collection agency without it! This is probably one of the most important issues when completing a short sale.

Short sale home inspection

This topic is important to understand from both a buyer's and seller's perspective. A home inspection should be done before short sale approval and NOT after. It is a huge benefit to both buyer and seller.

Strategic default vs short sale

There are many home owners who are deciding just to walk away from their homes. Fannie Mae has started to crack down on this practice and is now penalizing borrowers from getting a mortgage for up to seven years! A perfect alternative to a strategic default is a short sale. So as always check out your options before leaping without all the facts. By educating yourself on what the different avenues are you can save yourself a whole of time and possibly your credit.

Foreclosures

Remember that whenever you check out a foreclosed property the bank usually cant disclose any repairs or issues that the property may have since they have never occupied the house. You have to do more investigation when choosing this avenue of reduced price properties. You must also check to see if there are any notices/issues from the City or the Neighborhood Association as you may not be aware. If you can go inside and eyeball the property possibly do an inspection so that you know ahead of time what this property is going to take to bring up to normal working order.

Foreclosures are also properties that people have usually walked off and left in disrepair. How long it has been vacant and if the utilities have been maintained will depend on whether or not you will be able to walk in or if it will take some TLC to get things back to normal. Be careful how you choose these properties as they are case by case basis as to if the homeowner really did care about the home or if he was just counting the days to eviction.

Please remember to check with a knowledgeable agent/broker on the ins and outs of purchasing foreclosure or short sale properties. There is alot to know about both.

Happy Hunting!!

What a Wonderful Ride

2010-05-30T12:06:00.002-05:00

It seems that with all the help we received for first time home buyers we did make a small dent in the market but we have to look at those new home buyers that werent really ready to purchase a home that received funds and consequently put us into this market mess. We had three notes from utilites and a letter vouching for your character and usually a little money to put down and no clue as to how to budget or how to make things happen if something goes wrong. This is the story of what we have to fix and stop throwing money at the problem and look at how to actually take personal responsibility and make things better through action.

A first time home buyer should educate themselves on ALL the programs out there for down payments or grants. It is akin to the college student needing money. It is out there you just have to look for it. Many states and counties have programs that grant money to educated and by that I mean a person who takes their course and finds out what purchasing a home means. Entirely. Just the payment but insurances and maintaining properties and appliances. Value for value.

Look at todays buyers. Most want everything right now. Spend every dime I can get because I can. Is that realistic. No. Usually not. Look at how long they live in those homes. Not usually over three to five years. Is that a realistic option now? Probably not. It seems that most people have enslaved themselves to keeping up with the Jones. Look at history everytime someone has tried to make success their entire focus it fails. You must learn from where you have been and remember that yes your home is an extension of yourself... but if it is paid for and in good shape that means so much more than I have the credit now to purchase the home and hanging on by my fingernails and mailox to keep it!

People get yourself a good education on what your housing market is doing and find a good realtor that understands what it means to stay in business not just this sale. A good realtor is going to tell you the downs and the ups of each property. Resale is a reality these days and knowing what and when to sell or even when to purchase makes all the difference. If you need to find a good place to start give me a call and we can talk reality. Real Estate Reality.

2010-01-25T22:58:00.002-06:00

Looking for a good deal!!??

2009-11-02T08:31:00.002-06:00

Oklahoma is a great place to come and find a good deal on a home... our prices haven't flagged. Our values are stable... we have beautiful customs, and fantastic mature homes in glorious landscaped areas... Tulsa is known for it beautiful canopy of trees and green rolling hills. Come and explore what we have to offer!

Latest News and Market Trends

2009-11-02T08:29:00.001-06:00

Vote on tax credit expected this week; Inman News

Congress has approved a one-year extension of higher loan limits for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac, and an amendment that would extend the first-time homebuyer tax credit has been incorporated into a Senate bill to prolong unemployment benefits. A procedural vote on the unemployment benefit legislation, HR 3548, is expected today, Congressional Quarterly reported, with final passage by the end of the week.

CAR Reports September Home Sales Increased 2.1 Percent; Median Home Price Declined 7.3 Percent; RIS Media
Home sales increased 2.1% in September 2009 in California compared with the same period a year ago, while the median price of an existing home declined 7.3%, the California Association of Realtors® (C.A.R.) recently reported. “The market’s momentum continued in September, as many homebuyers took advantage of the federal tax credit,” said C.A.R. president James Liptak. “The success of the federal tax credit is clear. Nearly 70% of first-time homebuyers report that the tax credit was ‘the most important’ or a ‘very important’ factor in their decision to buy a home.

Top 3 Real Estate Mortgage Scams: What You Need to Know; RIS Media

Being a homeowner is one of the biggest dreams for the American people. Due to record numbers of homeownership and cheap mortgage rates, individuals who did not own a home previously are now looking for mortgages for financing their ambitions. On certain occasions, the dream of homeownership is associated with a cost that exceeds the mortgage.

World Risks Depression if Stimulus Is Pulled: Economist; CNBC.com

The world will slump into a depression similar to that in the 1930s if stimulus measures are pulled out too soon, Roger Nightingale, economist at Pointon York, told CNBC Monday. But stock markets are likely to ride the tough times without major problems, as economic activity is better than it was six months or a year ago, Charles Lemonides, Chief Investment Officer at Valueworks LLC, said.

CIT files for bankruptcy protection; Market Watch

CIT /quotes/comstock/13*!cit/quotes/nls/cit (CIT 0.38, -0.34, -47.22%) has struggled to avoid collapse since the recession triggered billions of dollars in loan losses and the financial crisis cut the company off from its main source of financing. "The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," Chairman and CEO Jeffrey M. Peek said in a statement.

U.S. Stocks May Be Starting ‘Correction,’ CLSA Says (Update1); Bloomberg

U.S. equities may be headed lower as technical indicators point to weakness and as economic figures disappoint investors hoping for a recovery, according to Christopher Wood, chief strategist at CLSA Ltd. The Standard & Poor’s 500 Index dropped 2.8 percent to 1,036.19 on Oct. 30, and is down 5.6 percent from its 2009 peak of 1097.91 on Oct. 19. Wood noted in a report today that the gauge is below its 50-day exponential moving average, which according to Bloomberg data stands at 1,047.2. Dropping below the average, which differs from a simple moving average because it assigns more weight to recent data points, may be a signal of further declines.

Home Equity Loan Market Remains Very Tight; Los Angeles Times
The overall housing sector is showing signs of improvement, but the market for home equity loans remains tight. Big losses on home equity loans prompted banks to freeze credit lines starting early last year, and solid-credit borrowers who apply for credit lines today likely will pay well above two points over the prime rate. National Mortgage News reports that the dollar amount of home equity credit lines and home equity loans plunged 75 percent from the second quarter of 2008 compared with the same period of this year.

Personal Income, Expenditures Drop; MBA

The Bureau of Economic Analysis reported Friday that personal income decreased by less than 0.1 percent in September. Disposable personal income also decreased by less than 0.1 percent. Real disposable income decreased 0.1 percent in September, compared to a decrease of 0.2 percent in August. Despite flat personal income, wage compensation fell by 0.1 percent and personal income on assets was down 0.8 percent, while transfer payments from the government was up about 0.8 percent. So overall, households are essentially maintaining their income by depending on government payments.

MBA Advocacy Update; MBA

Congress moved briskly on several MBA priorities last week, with the Senate and House tackling loan limits, the home buyer tax credit and regulatory reform. On Oct. 29, both chambers passed a one-year extension of the high-cost loan limits for Fannie Mae, Freddie Mac and FHA, sending the bill to President Obama's desk. The legislation came about after an intense week of advocacy by MBA, which had urged Congress not to wait until the end of the year to renew the higher limits. Also last week, a week-long effort to renew the first-time home buyer tax credit went through numerous fits and starts in the Senate, with a final vote on the provision spilling over into next week. Finally, the House Financial Services Committee continued its march toward passage of financial regulatory reform, turning its attention to the regulation of systemic risk among large financial firms and credit rating agency reform.

SUBSCRIPTIONS:

FBOP's Subsidiaries Closed, Sold to U.S. Bank; American Banker

Over a year after being hit hard by the takeover of Fannie Mae and Freddie Mac, FBOP Corp.'s nine banks totaling $19 billion in assets were closed by the government Friday night. The Federal Deposit Insurance Corp. announced a complex deal with Minneapolis-based US Bancorp, which will take over the operations of all nine institutions of the Oak Park, Ill., company starting on Saturday. U.S. Bank, the acquirer's largest subsidiary, will assume all of FBOP's $15 billion in deposits and acquire about $18 billion of its assets. However, the government is far from done bearing the cost of FBOP's demise as the FDIC agreed to share losses U.S. on $14 billion of those assets.

Workout Guidance for CRE Lenders; American Banker
Federal and state banking regulators have issued a 33-page guidance for judicious workouts of troubled commercial property loans. The guidelines not only outline scenarios where modifications of such loans should occur, it also gives detailed examples of model workouts and clarifies that institutions will not be penalized by examiners for sensible workouts even if a restructured loans still has deficiencies. The guidance was released after a number of bank failures were attributed to high concentrations of commercial real estate loan delinquencies.

Infographic: Mortgage Market Watch; American Banker

Geithner: Economy Growing, Jobs Lag; Wall Street Journal

Treasury Secretary Timothy Geithner acknowledges the federal budget deficit is too high, but that the priorities now are economic growth and job creation. Asked repeatedly on NBC's "Meet the Press" whether this means taxes will rise, Mr. Geithner avoided giving specifics. He did say President Barack Obama is committed to dealing with deficit in a way that will not add to the tax burden of people making less than $250,000 a year. The White House has not decided how to reduce the red ink, Mr. Geithner said in an interview broadcast Sunday. "Right now we're focused on getting growth back on track," he said. "And we're not at the point yet where we have to decide exactly what it's going to take."

Fed's Path to Higher Interest Rates Begins to Take Shape; Wall Street Journal

An economic recovery seems to have begun, and Federal Reserve officials are thinking mostly these days about how to unwind the unprecedented stimulus they've pumped into the economy. Eventually that will mean raising interest rates. What will a Fed tightening cycle look like? When will it begin? Fed officials don't have answers to either question yet, and investors would be wrong to think they do. But the contours of what a rate-boost cycle could look like are beginning to come into focus as the Fed's next policy meeting approaches Tuesday and Wednesday.

Landlords Offer Incentives to Stay Put; Wall Street Journal

Reis Inc. reports that high jobless figures -- coupled with more apartment residents seeking roommates, moving in with family or trading down to cheaper rental units -- propelled the U.S. apartment vacancy rate to 7.8 percent in the third quarter, a 23-year high. More owners are attracting new residents and keeping existing ones by offering incentives and slashing monthly rent. Owners are focused on retaining residents because when apartments become empty, they can stay that way for months and often require such expenses as painting and even brokerage commissions to attract new occupants

Goldman Looks to Buy Fannie Tax Credits; Wall Street Journal
Goldman Sachs Group is interested in buying millions of dollars in tax credits from Fannie Mae. It is offering to buy the low-income credits at a discount, which would enable the Wall Street firm to use them to offset some taxes on profits. Selling the credits would help Fannie Mae financially, but the Treasury Department is scrutinizing the plan because it could be viewed as a bad deal for taxpayers and due to the perception that the U.S. government continues to aid Goldman and Wall Street at the expense of homeowners and small business.

Fed's Path to Higher Interest Rates Begins to Take Shape; Wall Street Journal
In the coming weeks, Federal Reserve officials will be taking a closer look at inflation and signs of an economic recovery to determine how much and how fast to raise the short-term interest rate. However, observers say the high unemployment rate and low inflation rate give the central bank plenty of time to make a move. While experts predict the Fed will signal to investors that an interest rate shift is pending by retreating from policy statements that call for low rates over the long term, they add that the Fed will favor some market uncertainty so that investors are discouraged from making speculative investments.

If you would like a copy under the Subscriptions Section, please email karen.mccallson@phh.com.

Today's News and Reviews on the Mortgage Market

2009-10-07T08:24:00.001-05:00

Risk of Reverse Mortgages Highlighted; Bloomberg

Reverse mortgages may be the next subprime crisis, according to the National Consumer Law Center. Some of the same lenders that helped drive the real estate boom with loans to home buyers who could not afford the payments are now targeting seniors, the center, of Boston, said. Brokers, who are given financial incentives to sell the loans, may be making misleading claims to potential customers, according to a report titled "Subprime Revisited," that was released Tuesday by the center.

U.S. MBA Mortgage Applications Index Rose 16 Percent Last Week; Bloomberg

Mortgage applications in the U.S. rose last week to the highest level since May as near record- low borrowing costs boosted refinancing and sent purchases to a 10-month high. The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan jumped 16 percent to 756.3 in the week ended Oct. 2 from 649.6 in the prior week. The group’s gauge of refinancing surged 18 percent and its measure of purchases climbed 13 percent.

Make the Home Buyer Tax Credit More Easily Available at Closing; Ris Media

The first-time home buyer’s tax credit cannot be directly used for down payment at the closing table due to federal tax law. In order to claim tax credit, one must meet certain criteria. Since the first-time home buyer tax credit eligibility is contingent upon acquiring the home, it is impossible for one to receive the credit directly before closing on the home. NAR worked with Members of Congress to find a way to “monetize” the credit directly at the closing table. After weeks of work, the result was that because of the structure of the tax code and tax credits in general, it is somewhere in between impractical and impossible to make a tax credit directly available at the closing table. However, it is not impossible to leverage the anticipated credit for down payment assistance.

No Rest for the Weary: 75% of Americans Plan on Working as Long as They Can; Ris Media
A new study released by Bankrate, Inc. shows that the vast majority of working Americans plan to work as long as they can during retirement age, showing a redefinition of how Americans view traditional retirement plans. The poll, conducted by Princeton Survey Research Associates International, is included in the new Bankrate Financial Literacy series on Retirement Income.

Two Front-Runners Emerging for BofA CEO Spot; CNBC.com

Chief Risk Officer Greg Curl and Head of Retail Operations Brian Moynihan are the two most likely internal candidates to replace Bank of America CEO Ken Lewis, sources close to the situation told CNBC.

Support Builds for Tax Credit to Help Hiring; New York Times

The idea of a tax credit for companies that create new jobs, something the federal government has not tried since the 1970s, is gaining support among economists and Washington officials grappling with the highest unemployment in a generation. The proposal has some bipartisan appeal among politicians eager both to help their unemployed constituents and to encourage small-business development. Legislators on Capitol Hill and President Obama’s economic team have been quietly researching the policy for several weeks.

A Thirst for Credit; New York Times
Experts say the economy cannot fully recover without a boost in the debt-securitization market -- which includes mortgages, student loans, corporate credit and more -- or the emergence of new financing vehicles. However, banks have put the brakes on lending and may pull back even more as new accounting rules and capital requirements take effect in 2010. Meanwhile, investors are hesitant to purchase securities like they did prior to the economic crisis given that $50 billion in securitized commercial property loans will come due in 2010, and an inability to refinance at a time when property prices are falling could further increase banks' losses.

SUBSCRIPTIONS:

Pipeline; American Banker

Viewpoint: How to Meet Government's Loan-Mod Mandate; American Banker

Rising borrower demand for loan modifications and new government mandates that compel the industry to modify a half-million loans by Nov. 1 put the mortgage industry squarely into a harrowing situation for which there is no "silver bullet" solution. The good news is that there is hope. Well-intentioned government regulation designed to protect borrowers has added new layers of complexity to the already daunting process of reinvigorating this vital sector of the American economy. As the mortgage industry scrambles to develop competencies, maintain compliance and add much-needed capacity, the hidden solution may lie with process reengineering and the application of sophisticated analytics comparable to that used at the time of origination.

Fed Frets About Commercial Real Estate; Wall Street Journal

Banks in the U.S. "are slow" to take losses on their commercial real-estate loans being battered by slumping property values and rental payments, according to a Federal Reserve presentation to banking regulators last month. The remarks suggest that banking regulators are girding for a rerun of the housing-related losses now slamming thousands of banks that failed to set aside enough capital during the boom to cushion themselves when the bubble burst. "Banks will be slow to recognize the severity of the loss -- just as they were in residential," according to the Fed presentation, which was reviewed by The Wall Street Journal.

Fannie and Freddie to Aid Mortgage Banks; Wall Street Journal

Fannie Mae and Freddie Mac are preparing to introduce a program aimed at helping independent mortgage banks acquire the short-term credit they need to make home loans, according to people familiar with the plans. The two government-backed mortgage companies, the main providers of funding for U.S. home loans, plan to provide advance commitments to purchase home mortgages that meet certain standards. The goal is to reduce risks faced by independent mortgage banks so they can obtain short-term credit.

Families Cut Spending During '08; Wall Street Journal

Families cut back sharply on transportation and apparel spending last year, as wages failed to keep up with rising prices during the worst recession in decades. Consumer prices rose 3.8% last year from 2007, but pretax income climbed just 0.7%, or $472 an average family. To compensate, Americans made their priorities clear by slashing spending in less essential categories, and favoring such thriftier options as eating at home.

If you would like a copy under the Subscriptions Section, please email karen.mccallson@phh.com.

New Homeowners get to plant a little Green

2009-09-29T07:41:00.002-05:00

Check out this new and exciting event:

Sat, Oct 10 10am – 1pm CAP First Time Home Buyers Planting Kick-off & Media Event
Reed CAP Center, 10940 E. 5th St. Tulsa, 74128

This is put on by Up With Trees. What a super way to help new home owners get a little landscaping? Up With Trees is a fantastic organization that continues to green up Tulsa the real green way! Our beautiful landscape wouldnt be the same without all the free trees we have being planted by Tulsans for Tulsans. If you are interested in finding out more info you can contact April with Up With Trees by going to their website or checking with CAP. Volunteer to be a tree hugger on one of their plantings. You will love it. Besides finding the community spirit exhilierating the effects down the road are breathtaking. Drive along any motorway and you will see the fruits of Up With Trees labors! You can also get more info on CAP housing projects and assistance programs by dropping by or calling them. For more info give me a call or email!! Happy House Hunting People!!

Today's News and Reviews on the Mortgage Market

2009-09-23T08:17:00.001-05:00

Fed not acting like there's a recovery; CNNMoney.com

Federal Reserve Chairman Ben Bernanke has said that the recession is "very likely over," but the Fed isn't acting like we're in a recovery. Economists widely believe the central bank will keep interest rates between 0% and 0.25% at the conclusion of its two-day meeting Wednesday. The Fed is also expected to say very little about its plans to wind down more than a trillion dollars in lending and bailout programs, and it will likely stay away from any overly enthusiastic language about the economic outlook.

Leading Indicators Show Recession ‘Bottoming Out’; Ris Media

The U.S. recession is bottoming out and a recovery is near, economists for the Conference Board said recently after reporting that the index of leading economic indicators rose 0.6% in August 2009, the fifth straight increase. The coincident index—designed to measure current activity—was flat in August after an upwardly revised 0.1% gain in July, the private research organization said. The increase in July was the first since September 2008 and just the second since the recession began in December 2007. Five of the 10 leading indicators improved in August, and two others were unchanged. The leading indicators are designed to forecast economic activity about six to nine months ahead. “These data add further evidence to the growing view (and our long-held belief) that the official end date of the recession is likely to be sometime in the third quarter,” wrote Michelle Girard, an economist for RBS Securities.

Frank Set to Scale Back Plans for Consumer Financial Agency; Washington Post
Rep. Barney Frank, D-Mass., says he plans to make some changes to the Obama administration's proposed new consumer financial protection agency, which would have authority over mortgages and other financial products. In an bid to address industry concerns about the scope and power of the new watchdog, the head of the House Financial Services Committee plans to exempt certain non-financial businesses from its oversight, including real estate brokers; and it would not have the power to require financial institutions to offer "plain vanilla" products and services or to approve or alter business plans. However, nonbanks such as mortgage companies still would be subject to assessments.

Freddie Mac Names Ross Kari as CFO; Washington Post
Ross Kari has been named Freddie Mac's new CFO, effective Oct. 12. He joins the government-sponsored enterprise from Fifth Third Bancorp, where he served in a similar capacity. Freddie Mac has been without a permanent CFO since the fall of 2008, when it was seized by the federal government during the financial meltdown.

Taylor Bean, Freddie Mac Reach Agreement; Ocala Star-Banner
Taylor, Bean & Whitaker reached an agreement to hand over the financial information Freddie Mac requires to service millions of dollars in unprocessed mortgage payments once overseen by the Florida lender before its late-summer demise. In addition, TBW agreed not to interfere with the government-sponsored enterprise's efforts to recoup nearly $2 billion from the more than 100 TBW accounts frozen at Colonial Bank. Freddie Mac now must work with the FDIC, which took over receivership of Colonial, to collect mortgage payments it is claiming as its own.

SUBSCRIPTIONS:

July Rise, 12-Mo. Drop in Home Prices; Dow Jones

U.S. home prices rose a seasonally adjusted 0.3% in July, as some of the country's worst-hit housing markets showed signs of recovery. Prices fell 4.2% for the 12 months that ended in July, however, and remain 10.5% below their April 2007 peak, the Federal Housing Finance Agency said. It also said it revised the 0.5% price increase it reported for June downward, to a 0.1% increase.

What's an ID Check Worth to Lenders?; American Banker

The cost of verifying the identity of credit and mortgage applicants is going up, way up. Starting Oct. 1, the Social Security Administration plans to raise the fee it charges to check the identity of a mortgage or credit applicant from 56 cents to $5 for each verification. As a means of fighting fraud, most lenders use the agency, either directly or through a third-party firm, to verify a borrower's identity because it is considered the "purest" database since errors or juxtaposed numbers have appeared in credit reports

Delayed Foreclosures Stalk Market; Wall Street Journal
Legal issues, such as disputes between lenders and borrowers over the amount owed, bureaucratic red tape and initiatives to help borrowers avoid foreclosure have prevented banks from taking possession of homes and keeping them off the market temporarily. When these properties eventually flood the market as bank-owned real estate, experts worry that housing recovery will stall and residential prices will drop even more. LPS Applied Analytics reports that 1.2 million loans were 90 days or more past due but had not entered the foreclosure process as of July, and another 1.5 million homes were in the foreclosure process but not yet acquired by the lender.

New Contract between City of Tulsa and Community Action Project has Changes!!

2009-08-25T18:08:00.002-05:00

Ny good friend in the mortgage business sent me some new info on the new contract between the City of Tulsa and CAP. Look at what this means for the potential deal you could make to make your dream home a reality. If you qualify for a home but need some assistance with a down payment or maybe you dont understand what it takes to purchase a home then this "project" is for you. Check it out.

Heather sent:

Community Action Project’s (CAP) contract with the City has been executed. What does this mean for you and clients that are eligible to utilize CAP funds is this:

CAP assistance can be 5% of the contract sales price up to $5,000.

The buyer will have to have at least $1000 invested in the property which can be in the form of Earnest Money, inspections, appraisal, etc. As long as these items are equal to or more than $1000 then CAP will provide the full 5% up to $5000.

This is a big increase from before where they would only pay ½ or up to $3,500 of buyers down payment and closing cost.

CAP down payment assistance works in conjunction with FHA mortgages.

This is another great tool to inform your first time homebuyers about when they are looking to purchase a home!!!

Property can be anywhere in Tulsa County, Wagoner County (Broken Arrow side), Osage, & Rogers County. HOME DOES NOT HAVE TO BE OWNED BY CAP

For More Details Contact My Friend:

Heather Jobe
Mortgage Loan Consultant
Work: 918-496-2241
Cell: 918-698-8938
Fax: 918-494-6771
www.homeownershipwithheather.com

Happy House Hunting!!

Today's Market News

2009-08-10T08:10:00.000-05:00

Banks line up for second round of TARP; CNNMoney.com
For some banks, the grim reality is that another dose of TARP may be their best shot at salvation. Overwhelmed by loan losses, some hard-hit lenders are hitting up the Treasury Department for even more money from the Troubled Asset Relief Program.

Few Americans Buying Into Consumer-Led Recovery; RIS Media.com
Personal spending rose in June, but incomes fell, exposing the weak underbelly of the economy. With personal income declining, consumers are going to be hard-pressed to make the purchases necessary to pull the economy out of recession and keep it from falling back into decline. The figures released by the Commerce Department last week showed personal income fell more than economists were expecting, or 1.3%, compared with the median forecast of a 1% decline.

Krugman Says Bernanke Should Be Reappointed to Fed; Bloomberg.com
Ben S. Bernanke deserves another term as Federal Reserve Chairman based on his success in battling the financial crisis, said Princeton University Economist Paul Krugman, a winner of the Nobel Prize.

Breakfast Can Wait. The Day’s First Stop Is Online; New York Times
Karl and Dorsey Gude of East Lansing, Mich., can remember simpler mornings, not too long ago. They sat together and chatted as they ate breakfast. They read the newspaper and competed only with the television for the attention of their two teenage sons. That was so last century. Today, Mr. Gude wakes at around 6 a.m. to check his work e-mail and his Facebook and Twitter accounts. The two boys, Cole and Erik, start each morning with text messages, video games and Facebook.

Avoiding mortgage rate-lock problems; Inman News
Locking the price of a mortgage is full of potential problems for the unwary borrower. Locking is especially problematic in today's market because prices can jump around from day to day, and lenders take much longer than in pre-crisis years to approve an application, and often can't. Locking means that the lender commits that the price at closing will be the lock price, even if the market price is higher at closing than it was on the lock date. The price commitment holds for a specified period, usually 30 to 90 days, with longer periods priced higher.

Monday Morning Cup of Coffee: Mortgage Giant Freddie Mac; Housing WireRebounding from a net loss of $9.9 billion in the first three months of the year, Freddie Mac posted $768 million in net income for the 2009 second quarter. Boasting a net worth of $8.2 billion at the close of the reporting period, the mortgage concern will not need a cash infusion from the U.S. Treasury. Meanwhile, Freddie Mac said its smaller provision for credit losses was "driven by a reduced rate of growth in the company's loan loss reserve due to the recent modest national home price improvements, which the company believes to be largely seasonal."

Mortgage Lending Seems Poised to Open Back Up; Richmond Times-DispatchRecent value write-downs by the California Public Employees' Retirement System and the California State Teachers' Retirement System are drawing significant attention in commercial property circles. The two biggest U.S. pension funds now must focus on making new real estate acquisitions at a time when many buyers are taking a wait-and-see approach -- a trend that actually should boost the volume of property deals. Meanwhile, so much money has gone into buying corporate bonds in recent months that commercial mortgages have renewed appeal for insurance firms and others. Analysts say rates will drop as more such companies allocate funds to commercial mortgages and as competition intensifies.

MBA Advocacy Update; MBA
With the House already adjourned for the summer recess period, all eyes were on the Senate last week as it finished its work before heading home. Even with most of the attention on the confirmation of Supreme Court nominee Sonia Sotomayor, the Senate still focused on a number of regulatory reform issues.

SUBSCRIPTIONS:

Losses Narrow At Freddie Mac; Credit Union Journal
Fredie Mac reported a massive $4.2 billion gain on hedging as mortgage rates plunged to record lows almost dug it out of the red for the second quarter, even as dark clouds continue to hover over the secondary mortgage market giant. Freddie reported a small net of $332 million, which was wiped out by $1.1 billion in dividends paid to the federal government on its preferred stock, creating a $768 million loss for the second quarter.

Chances of Fed Raising Rate? Near Zero - WSJ.com
The market seems to think the days of zero-percent Fed financing are nearly over. But it might be getting ahead of itself.
Federal Reserve policy makers meet on Tuesday and Wednesday to discuss their target for the federal funds rate, which broadly influences borrowing costs. The Fed has kept that target floored at zero since December in an effort to get the economy moving.

Jobs Report Has Traders Going Long; Wall Street Journal
Options traders appear to be forming opinions on the long-term future of the stock market after the newest jobs report signaled a bit of stability in the economy. Several traders showed up Friday to buy and sell options that expire in January 2010 and January 2011, contracts that would have been largely ignored in choppier markets and less certain times. The activity suggests that investors are receiving some clarity about the future.

Employers Cut Back on Aid to Laid-Off Workers; Wall Street Journal
As companies continue to lay off workers, here's another reason for people to worry about joining the ranks of the unemployed: They may find a smaller severance package than they expect. The unemployment rate fell to 9.4% last month, but 247,000 jobs were still lost in that period. And the more people laid off by companies, the larger the chunk of change being paid out in the form of severance pay, continued health benefits, retraining and other services. So companies are beginning to put such payments under the microscope.

Maguire Warns of Loan Defaults; Wall Street JournalMaguire Properties Inc. is preparing to cede control of seven office buildings carrying more than $1 billion in debt to creditors, all of them worth less than their mortgages and unable to produce sufficient cash flow to finance leasing costs and pay debt service. Its woes reflect the mounting stress owners and lenders to commercial properties are facing, a trend that could drag down the economic rebound just as it is taking hold. Among the only beneficiaries of the turmoil are office tenants, many of whom are finding bargains. As for Maguire, one of Southern California's biggest office landlords, it still has $3.5 billion in debt -- an amount that reportedly exceeds the value of its remaining property portfolio.

Fannie Withholds Approval for MGIC; American BankerSkyrocketing claims are sucking up capital at mortgage insurers, prompting MGIC Investment Corp. to look at transferring as much as $1 billion from an inactive underwriting unit and using those funds to write more policies. Fannie Mae, however, believes the Milwaukee-based insurer's customers could be hurt by the plan because of "an increased risk that MGIC might not pay its claims in full in the future." The mortgage financier postponed an initial transfer of $500 million initially slated for the end of July but said it remains in talks with MGIC.

For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mcallson@phh.com.

Now is a fantastic Time!!!

2009-08-08T19:01:00.003-05:00

I think the main thing to remember right now when trying to purchase your first or subsequent home is that financing is not as easy as it became in the last couple of years. FHA and VA are still good choices but your local banks and credit unions seem to be the best bet for finding good deals on the right loan package to fit your needs. Low closing costs and less paperwork and sometimes.... even NO downpayment make these awesome avenues to get your goal recognized.

So shop around and find that better deal. Just remember to keep on track with the items that they request to make the loan. Some physical exams arent as offensive as some loan reviews. Make sure that you have made a budget and that your tax papers are close at hand. W-2's and even in some cases I9's and all income and dividend information are needed. Keep those proofs close at hand and remember sometimes following your gut about who you should use is the one that works out to be the best. If you can have your loan serviced by the same people that made it you are going to be better off if you have questions or issues. Make sure that the rate is fixed and that you can afford to pay the things upfront - Up front. Dont finance everything. It is better to be lean up front than for the next thirty years.

Go back to basics and remember sometimes less is more. Work to enjoy the finer things in life... not work to make the minimum payment so you can have the finest things in life. Good deals are all over the place and despite the major banks not wanting to make deals... most people respect the fact that you can make deals that favor both sides of the deal. Keep your eye out and contact that realtor... Me... to help you watch those properties you are most interested in or neighborhoods that you might be interested in moving into. You can watch the trend for awhile before you actually buy in the neighborhood to prejudge whether that is going to be a great investment for you.

Keep all these things in mind when deciding what is best for you to do... rent or sell. Sometimes the only difference is time. Even six months is a good waiting period if you are on an edge for a point or even a better score. Happy House Hunting!!!

FHA VA Loans

2009-08-01T17:11:00.003-05:00

Remember that you still CAN qualify for these loans... and Sellers are still willing to work with Buyers that are using FHA and VA to purchase a home. You just have to explain that all inspections require a home to be in good condition. Which if you are in the market for a home you would want it to be in good shape anyway. Unless you are on the line for purchasing a home creditwise it is typically a good idea to check out your local credit union for a loan first. If you dont qualify now you might wait a good six months to make that credit better. Besides waiting you will also be able to save a little more money for inspections and the like.

FHA and VA will only require the seller and their agent to sign a few more addendums to the contract and the borrowers to be vetted thoroughly. Remember this is a lifetime investment not a five or six year car loan. Make sure that you are ok with the terms as well as the mortgage company too. Closing Costs and points confusing... well make sure you ask all those questions before you sign on the dotted line. Better to know the bad news NOW than when you have already signed and have no choice.

If you have questions about who and where and what give me a call and I will be happy to guide you through the process to a reputable mortgage broker or lender. In todays ever changing world of buyouts and mergers it still pays to do business with a local or regional bank. Call me for more information.

Good News for Local Neighborhoods!

2009-07-08T23:26:00.001-05:00

Update on Neighborhood Projects

2009-07-08T23:24:00.001-05:00

Look many local neighborhoods in Tulsa are benefiting from the Vision 2025 program to create community in neighborhoods. New signage and landscaping being one of the projects that the city of Tulsa rewarded the neighborhoods that took advantage of grants with one condition being that the neighborhood provide some labor and team building with helping the project come to fruition. As in the case with Sheridan Valley, (pictured) the new signage helped to foster new feelings of growth and revitalization in an existing neighborhood. So look around at the new signage in neighborhoods near you and know your city is working to make things better all around town. If you want more information on the neighborhood project you should go to the CityofTulsa.org website and look at Vision 2025.

2009-07-08T23:23:00.001-05:00

Condos SCHMONDOS Freddie

2009-06-24T15:41:00.002-05:00

Hey Fannie Mae and Freddie Mac are going to lend more on condos... that might actually help since we here in Tulsa... have plenty of great location and fabulously new and updated condos for sale around town. Some empty nesters have started to take to the condos... now I am talking recent or soon to be retirees that want less upkeep and less space to be responsible for... Tulsa is reinventing the downtown urban scene. Live close to work. Walk to work or walk your dog after work... close to Work. Gas prices be damned they can rise or fall if you have less commute. Shops in condo areas are becoming more familiar and for most people you speak to they are loving it. So if you think a condo near your work or University might be a good move.... Check it out!!

And as always Happy Hunting Real Estate People!!

Have you heard whats going on with the real estate situation lately??

2009-06-24T15:21:00.002-05:00

"There have been increased problems related to appraisals in recent months. On May 1, Home Valuation Code of Conduct (HVCC) rules were adopted regarding mortgages that will be owned or guaranteed by Fannie Mae and Freddie Mac. The National Association of REALTORS® (NAR) is concerned that the rules could delay or actually eliminate a number of potential home sales."

This is really great with the added issues of lenders not lending. Mortagees are not being educated like they should have been in the first place so they are still getting in to situations that are not beneficial to a recovery. Freddie Mac and Fannie Mae have partnered with the same brokers and lenders that helped them to put themselves in danger.

As a realtor, I personally show these homes, or shall I say, try to with potentially dangerous situations arising with either too many properties with one agent / broker so that they cant return a call with a keybox code- or they have not even been to the property but once and the property is so in need of repair that it takes more months than it should to market and sell the property.

It is my idea to have the government not bail these larger corporations out but look at the housing market. Real Estate has always been key in where our Country is going. It is still the American Dream to own your home and possibly own your own business. Has someone forgotten it isnt guaranteed but an option, and albeit a real opportunity to own one or both. People have you forgotten you need to educate yourself on how to do it.

Lenders, Fannie and Freddie need to do the repairs on these homes and put the realistic values on them when they sell them- NOT wait for the house fairy to come and buy them up so that they can put the money into them. THEN when you make these loans make it mandatory that continuing education is needed to maintain your loan. This will make people in a more responsible position.
Government lending money is a reality. Make it more responsible and people will learn... their children will learn through their parents. Owning a home is not a right it is a responsibility.

As for appraisals... never have understood it is a science not an opinion. I dont know that I really agree with that either. Rules regarding government backed lenders (now its like its easier to say who isnt...) should watch the damage they are doing by not repairing these home before they put them back on the market. Neighborhoods where people have sunk all their savings and have made the long term investment are freaking out over what that foreclosure down the street is being marketed at.... If we play by the rules of a free economy then we will continue to progress through this hard time. If we try and short cut the process then might never recover. STOP with the government fixes already. Use your favorite political safe talk- EDUCATION and educate people how to buy a home... what it takes... and how to keep it. Um... I am pretty sure that that means be responsible and pay your bills I think I am starting to sound like the doctor who cured swine flu... WASH YOUR HANDS!!!! But at the risk of repeating a good addage all I needed to know I learned in kindergarten well maybe we should teach our kids to be more responsible and show them through our actions that we are too.

Happy Hunting Real Estate People!!

Commenting on The Market Today

2009-04-27T09:43:00.003-05:00

Well people its Monday and it seems that half of us are hoping and the other have are praying we go into a full blown recession so that the government will cut some more stimulus checks! Here is my thought... What if people just cut back and learn to live on less. The smaller home- the smarter car... and I dont know maybe a second job if you have to make ends meet. This is the reality that many people live all around the world. If you are smarter with your money and more frugal then you will likely spend wiser and save a little better.

The majority of people understand that you cant spend and not pay the piper. Housing markets in the central part of the country are still holding their values. Of course, Oklahoma doesnt have the three and four year inventory that the rest of the country has either. We are still building new homes and able to finance since many of our local banks didnt accept bail out monies. My advice for todays market is to go local. Try your local credit union. Local banks and credit unions are going to know what you are spending your money on and what youre likely to be able to pay back. If you have problems that arise. Call!! And if you can go by and talk with them. They would rather speak with you and work it out than not hear from you and the last response is that we are coming to foreclose on you.

No one is excited about breaks in jobs and finances but it happens to EVERYONE now. We are almost all equal now. I mean you do have those people that rolled the dice and lost but if you remember no one bailed out the Hooverites when they lost their homes and people bounced back and became smarter at saving and spending. History always repeats... and those of us smart enough to study the past remember and learn from those mistakes.

Now get out there and work and be happy. The old adage less is more is really true today!

Commenting on The Market Today

2009-04-06T13:08:00.002-05:00

Have you seen, or heard your neighbors saying, "I'm really concerned about what is going to happen with my money". If you are smart you know that the best time to buy is when the market is low. If you have issues with credit now is the time to work on them. Find a credit union or local bank to help you figure out what to do to save money. If you save now then it will be infinitely better later on when the economic times are better. Ask yourself if you need to move right now or if it would be better off later on when you have more money saved up for those projects you want to do. The first step to take is sit down look at your budget. If you dont have one then you need to make a realistic one. Times are demanding that people spend less and save more. Of course life doesnt always work that way. So by making a plan you can get yourself accustomed to what you need to do rather than react to what happens. The life you have is a direct result of what you wanted. So fix on what you want and make that happen. Budgets are tough to start but easier once you get started. Live on less and enjoy your stress-less ness!!!

Todays Financial and Mortgage News

2009-04-06T13:07:00.001-05:00

COURSON: Key money link at risk; Washington Times

With so much attention focused on the housing market these days, it is surprising that an extremely critical, yet not well publicized, link in the mortgage-lending chain is in danger of becoming permanently broken. Warehouse lending, which provides short-term funding to mortgage banks so they can originate mortgages and sell them in the secondary market, is headed toward extinction.

Washington Report: Mortgage Reform Bill; Realty Times

A massive new mortgage reform bill has Washington real estate and banking groups buzzing, both critically and in favor. The bill was introduced last week by House financial services committee chairman Barney Frank -- who's arguably the most influential legislator on housing issues on Capitol Hill.

Bernanke: Fed Purchase Programs Having Right Effect; C Bonds

U.S. Federal Reserve Chairman Ben Bernanke said Friday that the central bank's stepped-up purchase programs for Treasury and mortgage-related securities have been successful in lowering key borrowing costs for households and companies. He also signaled that the Fed is keeping a close eye on the size of reserve balances held at the Fed by commercial banks, saying that if those balances aren't managed right, they could make it tougher for the Fed to eventually tighten policy.

Consumers fall behind on loans at record rate; USA Today

A record number of consumers are falling delinquent or into default on their loans, a problem that some economists say will only get worse this year. A record 4.2% of consumer loans were delinquent at least 30 days in the fourth quarter, the latest data available, according to the Federal Reserve. Another 4% of consumer loans were in default, meaning they'd been written off by lenders.

Homelessness up as families on the edge lose hold; USA Today

Cities and counties are reporting a sharp increase in homeless families as the economic crisis leads to job loss and makes housing unaffordable. In Seattle, 40% more people are living on suburban streets. In Miami, calls from people with eviction notices have quadrupled. "The demand from families with children has increased dramatically," says Robert Hess of New York City's Department of Homeless Services. Each month since September, shelter requests have been at least 20% higher than they were a year ago.

Homeowners’ Hard Times Are Good for the Foreclosure Business; New York Times

The celebration started early Saturday, with poolside music and drinks, as partygoers passed around business cards and compared notes on successful techniques for evicting residents who try to stay in bank-owned property, a process they call “cash for keys.” One woman in a T-shirt walked around with a hand-written sign that read “Bank Property” affixed prominently to her chest.

Treasury Chief Says He’s Open to Ousting Heads of Frail Banks; New York Times

Treasury Secretary Timothy F. Geithner says he is prepared to oust the senior management and directors at banks that require extensive aid from the federal government. “If in the future, banks need exceptional assistance in order to get through this, then we will make sure that assistance comes,” while ensuring that taxpayers are protected, Mr. Geithner said Sunday in an interview on “Face the Nation” on CBS. “Where that requires a change in management and the board, then we will do that.”

Negative equity: a housing time bomb; Inman News

Most of the small print about the Obama administration's plan to help beleaguered mortgage borrowers is now available. In my view, it is coherent and well thought out, but disappointing in its limited scope. The program is designed to provide benefits to owners who deserve to be helped, rather than to reduce foreclosures and stabilize home prices.

Realogy CEO works on housing fixes; Inman News

Richard A. Smith, president and CEO of Realogy Corp., is leading a housing task force for a business organization that will explore challenges facing U.S. homeowners. The Housing Working Group of the Business Roundtable organization is expected to deliver recommendations within 60 days to the Obama administration and Congress for a housing recovery.

SUBSCRIPTION REQUIRED:

FHA Sends 'SWAT Teams' to Check Lenders; American Banker

Concerned that "bad actors" may be originating or brokering loans for the Federal Housing Administration, the agency is sending "SWAT teams" unannounced to check up on problem lenders, Housing and Urban Development Secretary Shaun Donovan said last week. Moreover, HUD’s inspector general, Kenneth M. Donohue, said it has "seen lenders acquiring FHA approval despite past abuses."

Calif. Realtors Offer Loss-of-Job Buffer; American Banker

The California Association of Realtors is trying to entice first-time homebuyers by offering up to $1,500 a month to cover six months' mortgage payments if they get laid off. James Liptak, the trade group's president, said in a press release issued last week that the program was designed to "ease the anxiety" of consumers who were holding back from buying a home because of concern about job losses.

Broker Group's Suit of FHFA Withdrawn; National Mortgage News

The National Association of Mortgage Brokers has withdrawn a lawsuit against the Federal Housing Finance Agency, one day after it sent a letter to Congress asking it for help to stop implementation of the Home Valuation Code of Conduct. The trade group called the withdrawal a "strategic maneuver." It said it wants to assess the FHFA's claim that no court may review its decisions while Fannie Mae and Freddie Mac are in conservatorship.

RealtyTrac Unveils Tenant Alert Service; National Mortgage News

RealtyTrac Inc. of Irvine, Calif., has introduced a service that gives tenants advance notice when the property they are renting enters into default or is about to be foreclosed on by a lender. RealtyTrac Renter Alert, announced last week, sends e-mail messages to subscribers warning them immediately of any foreclosure activity on a specific property.

Wells Builds Warehouse Unit; National Mortgage News

Wells Fargo & Co. plans to expand its mortgage warehouse lending operations using a platform it acquired when it bought Wachovia Corp. at yearend, according to industry officials familiar with the matter. Two sources at Wells confirmed the plan, but a spokesman could not be reached for official comment last week.

Todays thoughts....

2009-03-28T17:10:00.002-05:00

Well we are under a beautiful blanket of unexpected snow. Does that put a kink in our market - a little but we are a little sturdier than most... here in the heartland. We do have computers and tons of highways and pickups for where we dont. When the weather gets dicey our people start looking harder. Have no ideas on why that is but it happens. Tomorrow should be a super day for opens. Just remember if you cant do your open tour - to keep watching online and follow your favorite realtors ads to the next one. Our busy time is upon us again.
The snow is a great reason to do that extra cleaning if you need to to make more space or just wash the walls. Keep your eye on the prize and remember what it was that brought you to your home or what you are wanting to achieve with your next move. It makes it easier when confronted with either pros or cons of a new home. Study yourself approved on what it is that you are wanting to change and make it happen. Right now is a super time to move to Oklahoma. Be part of the new "Sooners" and come live it up Urban or Suburban. We have it all. Just dont mind the snow today we should have beautiful sunny skies tomorrow!

Happy Hunting!

Latest Thoughts on the Market

2009-03-25T14:27:00.003-05:00

Of course ask any blow joe on the street "Hows it going?" and the response here in Oklahoma is fine... fine... and you? Have you ever noticed that people in the heartland have always been resilient? We seem to walk a much easier line than those of our coastal cousins. Perhaps its the slower pace... albeit some days it isnt- but our way of looking at things when the inevitable happens is well... "it" happens. We are not afraid to let lose and hang that ribbon on the tree till our neighbors son comes home, or wave over the steering wheel to a total stranger. Do these acts in themselves make us uniquely different than the rest of the United States... I guess. We enjoy the simpler things like the places to roam and play. The amount of land we have to do it is unending. Our natual soils have something for everyone. Usually when people come here they are surprised that in one state you can have so many different landscapes. Our people are varied too. We have all kinds of cultures here- one could possibly eat from one country to another without having to go too far. We have honest values, we stand up for those things like an honest days wage and we are very friendly. As a direct result - we live a better, more fruitful lives than many others around the country. So when you are ready to give up that crazy train... and talk turkey... football or art... come our way... truly Oklahoma might just grow on you!! And a much desired lifestyle and cost of living can definitely be found here!

Todays Financial and Mortgage News

2009-03-25T08:08:00.001-05:00

UCLA forecast: 'Tepid recovery' in 2010; Inman News

This recession will be the longest and most damaging of the postwar era, according to the latest forecast report from University of California, Los Angeles, spanning an estimated 19-24 months and building to a U.S. unemployment rate of 10.5 percent in mid-2010. In "The Global Slump," one of the economic reports featured in the UCLA Anderson Forecast, senior economist David Shulman states that most of the "contractionary forces" on the economy "will have been spent" by the close of 2009. But the employment recovery from this recession "will be long and arduous," he notes, with the unemployment rate sticking above 9 percent through the end of 2011.

FHFA: First home-price increase in a year; Inman News

U.S. home prices rose a seasonally adjusted 1.7 percent from December to January, driven by a disproportionate number of sales in strong markets, according to a home-price index that tracks repeat sales of homes purchased with mortgages purchased or guaranteed by Fannie Mae and Freddie Mac. The Federal Housing Finance Agency's monthly House Price Index showed U.S. home prices down 6.3 percent from a year ago and 9.6 percent below their April 2007 peak.

Mortgage applications jump as rates hit record low; USA Today

Mortgage applications jumped last week as record low interest rates spurred a surge in demand for home refinancing, according to figures from the Mortgage Bankers Association. The association says its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32% to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5% of applications.

Smart house hunting: The Senichs; CNNMoney.com

The housing bust is not all bad news; some homebuyers have purchased their dream homes at prices they couldn't even hope for a year or two ago. Take Sara and Jay Senich. They're the proud owners of a newly renovated colonial just outside Washington D.C. - one they had previously rejected as too expensive.

Some Experts Unsure Whether Federal Buy-Up of Bank Debt Will Work; Ris Media

Yesterday’s announcement by Treasury Secretary Timothy Geithner that disclosed the details of the long-awaited and highly-anticipated $1 trillion plan to relieve the nation’s banks of the bad debt that has crushed lending and helped put the country into a recession has some economists and business experts unsure of the plans effectiveness. While the Dow Jones industrial average, the Standard & Poor’s 500 and the Nasdaq all showed strong gains after yesterday’s announcement, some economists said a key challenge facing the plan is putting a value on the toxic assets that will be acceptable to both the sellers and the buyers.

Citigroup, Others, May Be Buying Mortgage Securities: Post Link; Bloomberg

As Treasury Secretary Tim Geithner orchestrated a plan to help the nation's largest banks purge themselves of toxic mortgage assets, Citigroup and Bank of America have been aggressively scooping up those same securities in the secondary market, sources told The Post. Both Citi and BofA each have received $45 billion in federal rescue cash meant to help prop up the economy and jumpstart the housing market.

Wells taps more ex-Wachovia execs; Bloomberg

Wells Fargo & Co. has appointed another round of leaders in its investment banking and capital markets group, and former Wachovia executives have landed a majority of the posts. The San Francisco-based bank, which bought a stumbling Wachovia last year, this week named more than a dozen executives to run industry groups and other businesses in the unit that offers Wall Street-style services such as stock and bond offerings and merger advice. Two of the executives come from Wells Fargo, which had a smaller corporate and investment banking business.

6.3% Jan. Home Price Decline; Bloomberg

U.S. home prices fell 6.3% in January from a year earlier, according to the Federal Housing Finance Agency, as foreclosures dragged down values. The monthly house price index is down 9.6% from its peak in April 2007, the regulator said Tuesday.

Origination Projection Raised; Bloomberg

The Mortgage Bankers Association boosted its forecast for 2009 home loan originations by $800 billion, to $2.78 trillion, citing a wave of refinancing spurred in part by low interest rates. Refinancing will total $1.96 trillion in 2009 and purchase originations will increase to $821 billion, the MBA said Tuesday. Total originations may rise to the fourth-highest on record, driven by a drop in fixed mortgage rates and last week's announcement that the Federal Reserve Board will increase its planned purchases of mortgage-backed securities by 150%, the trade group said.

Guilty Plea in Fraud Case; Dow Jones

A Manhattan real estate developer has pleaded guilty to a criminal charge in an alleged $27 million mortgage fraud scheme. Michael Hershkowitz, 52, pleaded guilty to conspiracy to commit mail and wire fraud at a hearing Monday before U.S. District Judge P. Kevin Castel. A lawyer for Hershkowitz did not immediately return a phone call seeking comment.

The charge carries up to 20 years in prison and prosecutors are seeking nearly $27.2 million in forfeiture. Sentencing is set for Sept. 9.

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Failure Of U.S. Central Trickles Down Through Corporates; Credit Union Journal

Fitch Ratings yesterday slashed its ratings on eight corporate credit unions it said will have most of their capital wiped out by Friday’s takeover of U.S. Central FCU. The elimination of $2 billion of capital–membership capital shares and paid-in-capital held by U.S. Central 26 corporate members–will result in the other eight corporates rated by Fitch falling below regulatory capital minimums, according to David Spring, a corporate analyst for Fitch. As a result, Fitch cut its Individual rating for each of the eight corporates yesterday to ‘E,’ its second lowest rating.

What Does a CEO Do? Hard to Say for the GSEs; American Banker

More than six months after Fannie Mae and Freddie Mac were seized by the government, the role of chief executive at the government-sponsored enterprises continues to evolve. James Lockhart, the director of the Federal Housing Finance Agency, is overseeing both companies as their conservator. It remains unclear what authority Fannie and Freddie's CEOs hold, and several sources said this uncertainty caused David Moffett, the leader installed at Freddie after the conservatorship, to resign this month. The search for his successor continues.

Infographic: Split Levels; American Banker

For the top 150 bank and thrift holding companies and credit unions ranked by first mortgage loan portfolios in the third quarter.

To view the full article, please contact Karen McCallson.

Latest from Local Countrywide Banker

2009-03-23T08:17:00.003-05:00

The following is a Commentary from one of our local Countrywide Bankers:

Market Comment

Mortgage bond prices rose last week applying downward pressure on mortgage interest rates. The bond market got a boost from the Fed announcement (read below) to buy more mortgage debt. There was some profit taking in bonds Thursday afternoon following the run-up in prices Wednesday. Higher than expected core readings of the consumer and producer price indices reignited some inflation concerns. The Fed’s continued efforts to pump money into mortgage bonds helped keep mortgage interest rates favorable. For the week, interest rates on government and conventional loans fell by about 1/2 of a discount point.

The Treasury auctions will once again take center stage this week as additional debt supply hits the market. Durable goods orders and consumer sentiment data will be important.

LOOKING AHEAD

Economic Indicator	Release Date & Time	Consensus Estimate	Analysis
Existing Home Sales	Monday, March 23, 10:00 am, et	Down 0.8%	Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates.
2-year Treasury Note Auction	Tuesday, March 24, 1:30 pm, et	None	Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Durable Goods Orders	Wednesday, March 25, 8:30 am, et	Down 2.0%	Important. An indication of the demand for "big ticket" items. Weakness may lead to lower rates.
New Home Sales	Wednesday, March 25, 10:00 am, et	Down 2.9%	Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
5-year Treasury Note Auction	Wednesday, March 25, 1:30 pm, et	None	Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Q4 GDP final revision	Thursday, March 26, 8:30 am, et	Down 6.6%	Important. The aggregate measure of US economic production. Weakness may lead to lower rates.
7-year Treasury Note Auction	Thursday, March 26, 1:30 pm, et	None	Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Personal Income and Outlays	Friday, March 27, 8:30 am, et	Down 0.1%, Outlays up 0.3%	Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
U of Michigan Consumer Sentiment	Friday, March 27, 10:00 am, et	56.0	Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

Additional Fed Money

Last week the Federal Reserve announced it would pump another $750 billion into purchasing more mortgage-backed securities, the bonds that directly dictate 30 year and 15 year fixed rate Government and Conventional mortgage interest rates. This is in addition to the $500 billion being used between January and June to drive mortgage interest rates lower and help stimulate the economy.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

So to sum up it seems that the market is trying to rebound... albeit slowly. Through government backed loans and subsidies we are now looking at real estate and banking like the FARM AID times. Remember those? If you live in an area with lots of agricultural lands you will remember that the government programs eventually failed on those people and they lost their farms and assets like family homes for many generations. Pass or Fail we will eventually make it through but it might go further south after the "dole" programs run out. So I guess its get it while you can.

Todays Financial and Mortgage News

2009-03-23T08:15:00.000-05:00

BofA out to make jumbo loans; Inman News

Bank of America has cut interest rates on jumbo mortgage loans in the hopes of expanding its share of what the bank sees as an underserved market for loans too big for purchase or guarantee by Fannie Mae and Freddie Mac. Not everybody will qualify for the 30-year, fixed-rate loans of up to $3 million that Bank of America has been offering at reduced rates since January, with interest rates currently in the high 5 percent range.

Real estate brokerages hit by bankruptcy, closures; Inman News

An increase in real estate business closures and bankruptcies is an inescapable reality of any housing market downturn, and this cycle has been no different from those past. Though there are no hard statistics that quantify the number of companies that have closed their doors, merged with their competitors or filed for bankruptcy court protection, there's no doubt that closures and bankruptcies are on the rise and that both large and small real estate companies have been involved.

As bankruptcy filings mount, attention turns again to reform; USA Today

Cash-strapped families are seeking bankruptcy protection at nearly the same rate and in the same manner as they did before the much-debated 2005 bankruptcy law reform, a trend critics say proves the reform was a failure. Congress wrangled for eight years before passing a reform act aimed at curbing abuse and ending an alarming rise in bankruptcy filings. With the economy in tatters and personal fortunes often in even worse shape these days, the bankruptcy law is beginning to undergo scrutiny again.

As Cuts Loom, Will Working From Home Lead to a Layoff?; Washington Post

With the recession forcing businesses to cut back on workers, employees are increasingly doing all they can to hang onto their jobs and are forgoing many of the benefits that once allowed them to balance the demands of work and family life. In good times, workers frequently seized the opportunity to use "flex time" and family leave, to telecommute and to take paid sick days. But, according to workplace consultants, human resources specialists and employees themselves, those days are slipping away.

Treasury unveils long-awaited 'bad-asset' plan; CNNMoney.com

The Treasury Department unveiled its long-awaited plan to remove many of the troubled assets from banks' books Monday, representing one of the biggest efforts by the U.S. government yet to tackle the ongoing financial crisis. Under the new so-called "Public-Private Investment Program", taxpayer funds will be used to seed partnerships with private investors that will buy up so-called toxic assets backed by mortgages and other loans.

Mortgage Rates Dip in Response to Fed’s Decision to Buy Treasury Bonds and Mortgage Securities; Ris Media

Mortgage rates are again dropping to near-record lows - below 5% - in the wake of the Federal Reserve’s decision to buy up Treasury bonds and mortgage securities. Lower rates may help spur home sales, but analysts expect much of the action to come from homeowners who are looking to refinance, but mortgage experts caution that many homeowners are bound to be disappointed.

The problems that created the mortgage meltdown mess mean that tighter rules and regulations have been put in place for home buyers and those seeking to refinance, and tight lending standards make it much harder for all but the most creditworthy borrowers to qualify.

AIG Unit Files Suit Over Loans; Dow Jones

An American International Group Inc. unit has filed a lawsuit accusing Countrywide Financial Corp. and Bank of New York Trust Co., of misrepresenting the risk associated with more than $1 billion of mortgages. AIG, which was saved last year from collapse by the government after its exposure to mortgages soured, says in its suit that Countrywide, now a unit of Bank of America Corp., orchestrated the issuance of billions of dollars in residential mortgage-backed securities. Bank of New York Trust, which is now a unit of Bank of New York Mellon Corp, served as trustee for the securities and then issued and sold them in the secondary market.

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NCUA Seeks Broad New Powers To Stem CU Crisis; Credit Union Journal

NCUA is asking Congress for vast new authority to prevent a further meltdown of the credit union system. The agency, facing an estimated $6 billion cost so far to stem the spreading crisis, has asked Congress for the same power held by the FDIC to allow it to act to stop systemic risk. Such broad powers would enable NCUA to bypass the normal administrative procedures used in passing new regulations in time of crisis. It would allow the credit union regulator, for example, to put the entire corporate credit union system under conservatorship or extend the variety of short-term programs recently enacted on a permanent basis.

Ginnie Ponders Rent-to-Own Idea; American Banker

Joseph Murin, the president of the Government National Mortgage Association, said he is interested in exploring rent-to-own arrangements to clear a glut of foreclosures. Murin said last week that he suggested the idea to former Housing and Urban Development Secretary Steven Preston and would take it up with the current secretary, Shaun Donovan, in a meeting this week. (Ginnie is part of HUD. So is the Federal Housing Administration, which insures most of the loans underlying Ginnie's securitizations.) Some servicers have been exploring the possibility and want to test it, Murin said.

No Payment on Many FHA Loans; National Mortgage News

The Federal Housing Administration is experiencing "a large number of zero payment defaults" in which borrowers fail to make even one payment on their new government-insured mortgages, a Department of Housing and Urban Development official said last week. Such defaults are "a huge red flag" that some type of fraud has been committed, Lisa Gore, the assistant special agent in charge of the criminal investigation division in the HUD Inspector General's office, said at a Mortgage Bankers Association conference in Las Vegas.

Fed to Take Servicing Advances; National Mortgage News

The Federal Reserve Board has expanded the Term Asset-Backed Securities Loan Facility to help cash-strapped mortgage servicers pay advances to bond investors to cover missed payments by delinquent homeowners. Starting next month the facility will accept servicing advances as collateral in asset-backed securities, the Fed said last week.

To view the full article, please contact Karen McCallson.

Waiting to Hear on WHY we need to honor AIG Bonus'

2009-03-16T11:00:00.003-05:00

Why should the execs get bonus' for their splendid and outstanding work of running AIG? If its our money then I think that AIG employees should do like everyone else in normal circumstances. If your company is failing to the point of borrowing- you defer bonus' and incentives until the company is functioning normal and in the black again. Typically employees are just happy to have a job if your company is bankrupt. The president had better use our money more wisely or his flock is going to find out that he has more apron strings on that bailout package than he said publicly. Cant wait to hear his financial genius Tim Geitner tell us why that payout of bonus' is a good thing for everyone not just a few people who had better start looking for a new job if they are working for the taxpayers! Update to follow the press conference of ummmmmm why this happened.

Todays Financial and Mortgage News

2009-03-16T10:59:00.000-05:00

Real estate's February report card; Inman News

Since we began tracking the data for the major metropolitan statistical areas (MSAs) in 1981, there has never been a better time to buy a home. The median-income household needs only 27 percent of their income (an all-time low) to qualify for the median-priced home, and that household is also only paying 3.3 times their income for the house (3.1 is the all-time low).

While we acknowledge that there is a tremendous demand/supply imbalance that will probably drive prices lower, long-term-oriented homebuyers have the opportunity of a lifetime in most markets around the country. Phoenix is clearly one of those markets. New York clearly is not. Do prospective buyers in most markets really want to gamble that prices AND mortgage rates will be cheaper next year, or can they take a longer-term view that it doesn't get much better than this?

Capital requirements could hurt banks; Inman News

While policymakers and their kibitzers, among which I count myself, debate what is needed to cure the current crisis and associated recession, another debate brews in the background. It is about how to fix the system so that it doesn't happen again. Any coherent proposal for fixing the system is necessarily based on judgments about the causes of the current crisis. While there are many differences in emphasis, I believe that most observers would agree on the essentials:

Tide turns against schools as foreclosures rise; USA Today

Way back when times were good — last April — builders showed up one day at Forest Grove Middle School and gutted a little-used classroom off the gym. Four months and a half-million dollars later, they had transformed the space into a gleaming, bubbling mini marine biology laboratory, with five huge, blue plastic tanks for local marine life and a refrigerated tank that replicates the cold-water ecosystem off Maine.

AIG: At least $90B of its bailout aid was used to pay banks; USA Today

Over $90 billion in government rescue funds given to American International Group in the final three months of 2008 was then paid out to multiple foreign and domestic banks, some of whom had received their own bailout money. The embattled insurance giant on Sunday detailed how it used $105.3 billion of the roughly $170 billion in federal aid it has received, after the troubled insurer provoked outrage on Capitol Hill over its payment of tens of millions in executive bonuses.

Bernanke: Recovery to begin next year; CNNMoney.com

Federal Reserve Chairman Ben Bernanke said on Sunday that government officials are laying the groundwork for an economic revival and that a "depression" can be avoided - acknowledging however that a full recovery will take time and that there are still obstacles. "We're working on it. And I do think that we will get it stabilized, and we'll see the recession coming to an end probably this year. We'll see recovery beginning next year. And it will pick up steam over time," Bernanke said in a rare public interview airing on "60 Minutes," according to a transcript released by CBS.

Your job: Washington's solution; CNNMoney.com

The economy continues to hemorrhage jobs at an alarming rate. Job losses have reached a whopping 4.4 million over the past 14 months and the unemployment rate has zoomed to a 25-year high of 8.1%. The bloodletting is hitting all industries, with manufacturing, construction and finance being hit the hardest. Even those workers who are holding onto their jobs are facing pay cuts, furloughs, forced vacations and fewer hours as companies struggle to stay afloat.

A Sinking Feeling: One-in-Five Homeowners Feels ‘Underwater’ on Mortgages; Ris Media

The latest survey by the Pew Research Center for the People & the Press finds that 20% of all homeowners-or 30% of mortgage holders-say that if they had to sell their home right now, it would sell for less than they owe. And homeowners who feel underwater on their mortgages report considerably more financial strain that those who do not. The survey, conducted Feb. 4-8 among 1,303 adults on cell phones and landlines, finds that mortgage holders who feel they are underwater are generally younger, less affluent and more likely to be Hispanic or African American than are those who feel they would at least break even if they had to sell today.

Two Thornburg Directors Step Down; Bloomberg

The Santa Fe, N.M., jumbo lender Thornburg Mortgage Inc. said two directors whose firm provided financing to keep it out of bankruptcy last year have resigned, because of potential conflicts of interest. Thornburg said Friday in a filing with the Securities and Exchange Commission that David Matlin and Mark Patterson, the cofounders of the New York buyout firm MatlinPatterson Global Advisers LLC, have stepped down from the board. In a letter to Thornburg, Matlin and Patterson wrote that the resignations were not a result of any disagreement with the company or the board.

Senate Democrats Seek Support For Mortgage Modification Bill; Washington Post

Key Democratic lawmakers are courting support from the financial services industry, including credit unions, for legislation that would allow bankruptcy judges to modify mortgages. The provision passed the House last week but has not been scheduled for a Senate vote. The Senate had been expected to take up the bill as soon as this week, but it now could be delayed a few weeks, perhaps until after Easter, some congressional aides said.

Job Losses Hit Home: Unemployment Rise Hurts Housing Values; Investor News

The latest U.S. job-loss figures spell out a troubling story for homeowners, in areas hit hard by the housing downturn and elsewhere. Initial claims for unemployment benefits surged more than expected last week to 654,000, according to Labor Department data out Thursday. Total employment fell in 42 states in January, unemployment rose monthly to 7.6% from 7.2%, and mass layoffs hit about a quarter million workers.

BofA seeks more jumbo mortgages: report; Reuters

Bank of America Corp is seeking to produce more "jumbo" mortgages, which can range from $417,000 in most areas to as much as $729,750, Barbara Desoer, the bank's head of mortgage, home equity and insurance services told Bloomberg in an interview. "Bank of America has balance-sheet capacity and we've allocated it to jumbos given our presence in some of the states and regions where that's important," Desoer was quoted as saying.

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B of A to Make Merrill Call Soon; National Mortgage News

Bank of America Corp. said it will make a final decision within 30 days on the fate of Merrill Lynch & Co.’s far-flung mortgage units, which include two large subprime servicers and a Jacksonville, Fla., division that caters to wealthy brokerage customers. "We're in the midst of making an assessment," Barbara Desoer, B of A's mortgage chief, said in an interview last week.

She offered no guidance on what the Charlotte company would do with the units.

Before acquiring Merrill this year, B of A already had a large servicing operation catering to subprime customers, as a result of its acquisition of Countrywide Financial Corp. last year.

UBS Proposes Three New Board Members; Wall Street Journal

UBS AG Monday named three financial experts to its board, making good on its promise to broaden the banking savvy of its top brass in a step that analysts said will help speed up the Swiss bank's restructuring process. Nominated for UBS board were: Michel Demare, the current chief financial officer of Swiss engineering firm ABB Ltd.; Ann Godbehere, the former Swiss Reinsurance Co. financial chief; and Axel P. Lehmann, the chief risk officer of Swiss insurer Zurich Financial Services AG. By midday in Zurich, UBS shares were up 9.1%.

U.S. to Toughen Finance Rules; Wall Street Journal

The Obama administration, moving with increasing speed, has inked the main contours of its plan to revamp financial-market oversight -- changes that will ripple through the economy, affecting everything from the operations of international banks to consumer protection. The principles include giving the Federal Reserve new powers that include authority to monitor and address broad risks across the economy, say people familiar with the matter. The proposals are expected to include tougher capital requirements for big banks and authority for regulators to take over a large financial firm that is failing.

MGIC Deferral Spurs Downgrades; Dow Jones

MGIC Investment Corp. said Friday that it plans to defer a $17.5 million interest payment on $390 million of debt, and Standard & Poor's Corp. slashed the mortgage insurer's credit rating as a result. The Milwaukee insurer said it was holding off on the payment so it can keep more cash on hand to cover rising mortgage losses. The plan is not a sign MGIC will file for bankruptcy, the insurer said. S&P lowered MGIC's credit rating seven notches, to CCC, the grade it gives companies that defer interest payments. James Brender, an S&P analyst, said it also downgraded MGIC's U.S. subsidiaries because of their "recent poor operating results and our concern that rising unemployment could delay MGIC's recovery."

Freddie Forecast: $30B Hit from Obama Mod Plan; American Banker

Freddie Mac said the Obama administration's housing plan may cost it $30 billion. Such a hit to the government-sponsored enterprise — which lost $50 billion last year and is not expected to return to profitability soon — could take a significant bite out of its federal backstop. Last month the administration doubled the backstops for Freddie and Fanie Mac, to $200 billion each. Part of the Obama plan calls for Fannie and Freddie to encourage servicers to modify mortgages that are in default or at risk of becoming so. When Freddie modifies a loan it guarantees that is current, the GSE must repurchase the loan from the securitized pool. Doing so on a large scale may entail accounting for its entire portfolio of guarantees — $1.8 trillion of mortgages — as derivatives at fair value, minus credit reserves, Freddie said Wednesday in its annual report.

To view the full article, please contact Karen McCallson.

Todays Financial and Mortgage News

2009-03-06T21:36:00.001-06:00

BofA's Lewis: Merrill TARP funds a 'tactical mistake'; Jacksonville Business Journal

Bank of America Corp. CEO Kenneth Lewis said the bank's request for $20 billion in federal funds to support BofA's acquisition of Merrill Lynch & Co. Inc. was a "tactical mistake." According to the Financial Times, Lewis said the extra bailout funds from the Troubled Asset Relief Program made BofA appear as weak as Citigroup Inc.

Jacksonville could get $38M from stimulus package; Jacksonville Business Journal

The federal stimulus package will have at least a $38 million impact on the City of Jacksonville, said a spokeswoman for Mayor John Peyton. The Florida Department of Transportation expects to receive funding for about $20 million worth of projects in Jacksonville, said Misty Skipper. The city expects about $12 million in funding for energy efficiency projects, but it’s not clear what types of projects are eligible.

Florida tops nation for delinquent mortgages; Jacksonville Business Journal

Florida leads the nation in the number of homes delinquent or in foreclosure according to a fourth quarter survey by the Mortgage Bankers Association. The survey found that 20.1 percent of mortgages on Florida homes were delinquent or held in foreclosure. Nationwide, more than 11 percent of American homeowners are either delinquent or in foreclosure.

Charles Schwab survey: Downturn will end within two years; Jacksonville Business Journal

An online study conducted for Charles Schwab Corp. shows that 85 percent of the nation’s independent financial advisers believe the downturn will end within the next two years. Fifteen percent see it going longer. While most of the respondents expect the recession to abate by the end of 2010 at the latest, many say stock portfolios may need a while longer to recover.

N.J. jobless rate 7.3% in Jan.; Philadelphia Business Journal

The unemployment rate in New Jersey hit 7.3 percent in January, the state Department of Labor and Workforce Development said. That was up from 7.1 percent in December. Pennsylvania had announced earlier that its jobless rate in January was 7 percent, up from 6.4 percent in December.

Report: Wells is safest bank in U.S., 21st overall; Philadelphia Business Journal

International banks dominate the rankings in a new report on the safest financial institutions worldwide. Wells Fargo is the top-rated U.S. bank at No. 21. According to Global Finance, the analysis of the “World’s 50 Safest Banks” shows the effects of the subprime mortgage meltdown and credit crisis brought on by large Wall Street players. European banks now dominate the rankings, with only four U.S. banks among the listing.

Delinquencies, foreclosures hit new highs; Inman News

More than one in 10 homes with mortgages were behind on their payments or in foreclosure in the fourth quarter of 2008 -- the highest proportion in records dating back to 1972, the Mortgage Bankers Association said today. About 7.88 percent of all mortgages outstanding on one- to four-unit residential properties were at least one payment past due during the fourth quarter, and another 3.3 percent were in foreclosure. The combined delinquency and foreclosure rate of 11.18 percent was a record, as were the percentage of loans 60 days or 90 days or more past due.

Ambitious Foreclosure Plan Revealed - How Will It Help?; Ris Media

The Obama administration on Wednesday detailed its ambitious $275 billion plan to halt soaring foreclosures nationwide, outlining the financial incentives it’s offering investors, lenders and their bill collectors to lure them into modifying distressed mortgages to keep Americans in their homes. The slump in home prices is the root cause of the global financial meltdown, so the success or failure of the administration’s housing plan is vital to ending the deepening economic recession.

Realtors Pledge Assistance for Obama Guidelines on Foreclosure Fixes

; Ris Media

Following President Obama’s announcement of his “Making Home Affordable Plan, National Association of Realtors® President Charles McMillan stated the following: “NAR’s 1.2 million members are eager to help make President Obama’s Making Home Affordable plan a reality. We are pleased that the president released the guidelines today for refinancing and mortgage loan modifications and that the guidelines will be implemented immediately to help struggling homeowners as well as millions of eligible homeowners who have stayed current in their mortgage payments.

Most foreclosures pack into a few counties; USA Today

More than half of the nation's foreclosures last year took place in 35 counties, a sign that the financial crisis devastating the national economy may have begun with collapsing home loans in only a few corners of the country. Those counties, spread over a dozen states, accounted for more than 1.5 million foreclosure actions last year, a USA TODAY analysis of figures compiled by the real estate listing firm RealtyTrac shows — more than were recorded in the entire United States just two years earlier. They were the epicenter of a wave of foreclosures that have left leading banks teetering and magnified the nation's economic problems.

Unemployment hits 25-year high; CNNMoney.com

The U.S. economy continued to hemorrhage jobs in February, bringing total job losses over the last six months to more than 3.3 million, and taking the unemployment rate to its highest level in 25 years. The government reported Friday that employers slashed 651,000 jobs in February, down from a revised loss of 655,000 jobs in January. December's loss was also revised higher to a loss of 681,000 jobs, a 59-year high for losses in one month.

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House Crams Down Bankruptcy Bill Over CU Objections; Credit Union Journal

The House approved the bill last night to authorize bankruptcy courts to restructure troubled home mortgages, over the objections of the credit unions and banks, sending the so-called cramdown measure on to the Senate. The House version, however, was eased somewhat by provisions that will give credit unions and other lenders a piece of any profits made on the sale of crammed-down properties and making interest rate reduction, and not a cramdown of the loan principal, the main priority of the bankruptcy courts.

Overdue Mortgages Increase; Wall Street Journal

More than a tenth of American households with home mortgages are overdue on payments or in foreclosure, according to a new survey. The Mortgage Bankers Association's latest survey, released Thursday, showed that about 11% of mortgages on one- to four-family homes were at least a month overdue or in the foreclosure process at the end of 2008. That seasonally adjusted figure is up from 10% three months before and 8% a year earlier. The current level is the highest since the trade group began such surveys nearly four decades ago.

Freddie Unveils REO Rental Initiative; American Banker

Freddie Mac said Thursday that it has launched a program called REO Rental Initiative that gives qualified tenants and former owners the option to lease their recently foreclosed properties on a month-to-month basis. Fannie Mae had announced a similar program in December. Freddie's program will be managed by HomeSteps, its national real estate unit, and implemented through several national property management firms.

To view the full article, please contact Karen McCallson.

Have you been a victim of your mortgage company?

2009-03-06T07:19:00.003-06:00

Take a closer look at what is happening to people all over the country since the mortgage crisis. People that face foreclosure may have a better deal than the government stepping in. Many people that tried to sell their property and found that the mortgage company was merged with or bought out by another and ultimately tried to foreclose on them found that when pressured their note was sold to another company and the paperwork wasnt done. The ultimate loophole has been found. When the mortgage companies didnt refile the notes they lost their right to the property and the banks only have 5 years to get on it to get things straight to keep their right to the collateral. Some attorneys have been successful at proving that their clients did all they could to market their properties and then either didnt get good information on payoffs or didnt get timely information and lost their contracts, and thus loving their homes and credit.

These attorneys and their clients have fought back and in many cases won. Check out just one article on the situation.

March 1, 2009

Fair Game

Guess What Got Lost in the Loan Pool?

By GRETCHEN MORGENSON

WE are all learning, to our deep distress, how the perpetual pursuit of profits drove so many of the bad decisions that financial institutions made during the mortgage mania.

But while investors tally the losses that were generated by loose lending so far, the impact of another lax practice is only beginning to be seen. That is the big banks’ minimalist approach to meeting legal requirements — bookkeeping matters, really — when pooling thousands of loans into securitization trusts.

Stated simply, the notes that underlie mortgages placed in securitization trusts must be assigned to those trusts soon after the firms create them. And any transfers of these notes must also be recorded.

But this seems not to have been a priority with many big banks. The result is that bankruptcy judges are finding that institutions claiming to hold the notes that back specific mortgages often cannot prove it.

On Feb. 11, a circuit court judge in Miami-Dade County in Florida set aside a judgment against Ana L. Fernandez, a borrower whose home had been foreclosed and repurchased on Jan. 21 by Chevy Chase Bank, the institution claiming to hold the note. But the bank had been unable to produce evidence that the original lender had assigned the note, which was in the amount of $225,000, to Chevy Chase.

With the sale set aside, Ms. Fernandez remains in the home. “We believe this loan was never assigned,” said Ray Garcia, the lawyer in Miami who represented the borrower. Now, he said, it is up to whoever can produce the underlying note to litigate the case. The statute of limitations on such a matter runs for five years, he said.

A spokeswoman for Capital One, which is in the process of acquiring Chevy Chase, did not return a phone call on Friday seeking comment.

Mr. Garcia has another case in which a borrower tried to sell his home but could not because the note underlying a $60,000 second mortgage cannot be found. The statute of limitations on the matter will expire in October, he said, and if the note holder has not come forward by then, the borrower will be free of his obligation on the second mortgage.

No one knows how many loans went into securitization trusts with defective documentation. But as messes go, this one has, ahem, potential. According to Inside Mortgage Finance, some eight million nonprime mortgages were put into securities pools in 2005 and 2006 and sold to investors. The value of these loans was $797 billion in 2005 and $815 billion in 2006.

If notes underlying even some of these mortgages were improperly assigned or lost, that will surely complicate pending legislation intended to allow bankruptcy judges to modify mortgage terms for troubled borrowers. A so-called cram-down provision in the law would let judges reduce the size of a loan, forcing whoever holds the security interest in it to take a loss.

But if the holder of the note is in doubt, how can these loans be modified?

Bookkeeping is such a bore, especially when there are billions to be made shoveling loans into trusts like coal into the Titanic’s boilers. You can imagine the thought process: Assigning notes takes time and costs money, why bother? Who’s going to ask for proof of ownership of these notes anyhow?

But as the Fernandez case and others indicate, bankruptcy judges across the country are increasingly asking these pesky questions. Two judges in California — one in state court, another in federal court — issued temporary restraining orders last month stopping foreclosures because proper documentation was not produced by lenders or their representatives. And in another California case, a borrower’s lawyer was awarded $8,800 in attorney’s fees relating to costs spent litigating against a lender that could not prove it had the right to foreclose.

California cases are especially interesting because foreclosures in that state can be conducted without the oversight of a judge. Borrowers who do not have a lawyer representing them can be turned out of their homes in four months.

Samuel L. Bufford, a federal bankruptcy judge in Los Angeles since 1985, has overseen some 100,000 bankruptcy cases. He said that in previous years, he rarely asked for documentation in a foreclosure case but that problems encountered in mortgage securitizations have made him become more demanding.

In a recent case, Judge Bufford said, he asked a lender to produce the original of the note and it turned out to be different from the copy that had been previously submitted to the court. The original had been assigned to a bank that had then transferred it to Freddie Mac, the judge explained. “They had no clue what happened after that,” he said. “Now somebody’s got to go find that note.”

“My guess is it’s because in the secondary mortgage market they have been sloppy,” Judge Bufford added. “The people who put the deals together get paid for the deals, but they don’t get paid for the paperwork.”

A small but spirited group of consumer lawyers has argued for years that the process of pooling residential mortgages into securities was so haphazard that proper documentation of the loans was never made in many cases. Leading the brigade is April Charney, a foreclosure lawyer at Jacksonville Legal Aid in Florida; she now trains consumer lawyers around the country to litigate these cases.

Depending on the documentation defect, lawyers say, investors in the trust could try to force the institution that sold the loan to the trust to buy it back. Many of these institutions would be unable to do so, however, because they are defunct. In the meantime, when judges are not persuaded that the documentation is proper, troubled borrowers can remain in their homes even if they are delinquent.

THE woes brought on by sloppy bookkeeping in securitizations will be on the agenda at the American Bankruptcy Institute’s annual spring meeting on April 3. An article titled “Where’s the Note, Who’s the Holder,” co-written by Judge Bufford and R. Glen Ayers, a former federal bankruptcy judge in Texas, will be the basis of a discussion at the meeting.

Mr. Ayers, who is a lawyer at Langley & Banack in San Antonio, said he expects that these documentation problems will halt a lot of foreclosures. That will mean pain for investors who hold the securities. The problem for those who expect to receive the benefit of the note, Mr. Ayers said, is that they “may not be able to show to the judge they have a right to foreclose.”

“It’s a huge problem,” he added. “It’s going to be expensive, I don’t know how expensive, ultimately to the bondholders.”

This article was brought forth by a local Tulsa attorney, Phillip Taylor, who is in the middle of the same types of litigation here. He has said "Spread the word, theres a new sheriff in town". He is helping the little guys who have tried everything to hang on to their properties and have had little help. Now they are finding that he has the edge they need to either get a direct line to the right person or they get to keep their home. So if you find that you have a situation like this, you might contact someone like Phil Taylor to assist you in the direction you need to go.

Again, this is also a good reason why when looking for a mortgage company to stick to a local one- that you know is going to service your loan. Now that is not to say they wont sell it later but if you have someone local that is servicing it- if problems arise you will be able to work it out easier if you arent calling a huge call center that is not aware of your markets issues. For a recommendation on how to go about this give me a call. I would love to assist you with getting on the right path to your new home... or trying to save it.

Todays Financial and Mortgage News

2009-03-05T21:52:00.000-06:00

Nassau County rethinks future in face of recession; Jacksonville Business Journal

It wasn’t long ago that Nassau County was a budding jewel of the First Coast. Improved access from Jacksonville, a charming quality of life and relatively low land prices were attracting fresh arrivals to Nassau County in the heyday of a flourishing economy. By 2007, the population had increased more than 20 percent since the new millennium, making Nassau one of the fastest growing counties in Florida. Developers were lining up, and buildings appeared virtually overnight.

Study: CFOs see no recovery until 2010; Jacksonville Business Journal

A new Duke University survey of chief financial officers suggests that the global recession will last well into 2010 – with harsh effects on the economy. CFOs also aren’t fond of President Barack Obama’s administration, with roughly two-thirds of respondents to the survey saying economic stimulus plans will either hurt, or have no effect on, the economy.

Study: Corporate giving to dip in 2009; Jacksonville Business Journal

The economic downturn will have a major impact on corporate philanthropy in 2009. That’s what The Conference Board found in a survey of 158 companies about their planned changes in corporate giving programs. About 45 percent of those surveyed had already implemented a reduction in their 2009 giving budgets and 16 percent were considering it, while 35 percent said they would make fewer grants in 2009 and 22 percent are considering doing the same.

Toll Brothers cuts loss, shares rise; Philadelphia Business Journal

Luxury home builder Toll Brothers said Wednesday that its fiscal first-quarter loss fell slightly to $88.9 million from a $96 million loss in the year-earlier period despite a 51 percent plunge in revenue. Horsham, Pa.-based Toll (NYSE:TOL) said its loss equaled 55 cents per diluted share, on $409 million in revenue, compared to 61 cents per share on $842.3 million in revenue in the year-earlier quarter. The company earned 6 cents per share not counting $156 million in writedowns, mostly on the value of its operating communities and owned land.

U.S. mortgage delinquency at 4.58%; Philadelphia Business Journal

A growing number of individuals in the United States are falling behind on their mortgage payments, and the problem is expected to get worse. According to credit reporting agency TransUnion, the number of homeowners making late mortgage payments shot up 53 percent in the fourth quarter from a year earlier. TransUnion says its database shows that delinquencies – the percentage of mortgage holders nationwide who are at least 60 days behind on payments – jumped to 4.58 percent in the latest quarter, marking the eighth straight quarter of increases.

Guidelines for loan mods, refis released; Inman News

The Obama administration has released the guidelines that loan servicers will use to determine who is eligible for mortgage loan modifications and refinancings under a new initiative aimed at helping up to 9 million homeowners avoid foreclosure. The Homeowner "Home Affordable Refinance" component will rely on Fannie Mae and Freddie Mac to refinance 4 million to 5 million mortgages for borrowers who might otherwise be unable to refinance because their homes have lost value and they have less than 20 percent equity in their property.

Home auctions biz grows 1.1% in '08; Inman News

The National Auctioneers Association, a trade group for auction professionals, this week reported that gross receipts for real estate auctions grew about 1.1 percent in 2008, with an estimated $17.1 worth of residential real estate sold at auction. Bank-owned properties that have completed a foreclosure process (commonly referred to as REOs) were "a major contributor to the industry's growth in 2008," NAA reported.

Details on housing plan show U.S. taking aggressive action; USA Today

Details of the Obama administration's housing rescue plan were greeted with both praise as a means to help homeowners who are at risk of foreclosure and criticism that more needs to be done to make homes more affordable for new and current homeowners. "They're fleshing out the details, and the meat of the program is the modification program," says Brian Bethune, with IHS Global Insight. "It makes sense, and the more they can show what they're going to do and execute it, the better off we'll be. There are potentially millions of owners who could be eligible."

Treasury Details Homeowner Assistance Program; MBA

The Treasury Department yesterday released details of its Making Home Affordable program, aimed at promoting refinancings and modifications of mortgage programs. The Mortgage Bankers Association expressed general support for the program, saying the unified approach to help modify or refinance delinquent and “underwater” loans will help servicers keep more at-risk borrowers in their homes. But it noted that a substantial number of subprime loans will not fall under the program's safe harbor.

Mortgage applications down; TimesLeader

Mortgage applications fell last week, as refinancing activity slowed. The Mortgage Bankers Association said Wednesday its weekly application index fell 12.6 percent for the week ended Feb. 27. The index came in at 649.7, down from 743.5 a week earlier, which was a shortened week due to the President’s Day holiday. On an unadjusted basis, the index slipped 2 percent compared with the previous week, the trade group said.

Chase opens O.C. center for mortgage help; Orange County’s News

JPMorgan Chase on Wednesday opened a mortgage aid center in Santa Ana, which has the highest concentration of foreclosures in the county. From an office on Main Street, the center has seven employees available to meet with mortgage customers of Chase, Washington Mutual or EMC Mortgage, said spokesman Gary Kishner. The goal: Avoid foreclosure.

SEC to Study Credit-Rating Rules; Washington Post

The Securities and Exchange Commission is planning today to announce it will hold a roundtable on April 15 to discuss how to revamp the rules governing credit-rating agencies, according to people familiar with the matter. SEC Chairman Mary L. Schapiro has raised concerns about credit-rating agencies, private firms that have been blessed by the SEC to judge the creditworthiness of securities. Credit-rating firms gave high grades to many of the mortgage-related securities that turned out to be toxic and have wreaked havoc in the financial crisis.

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CUs Balk At Cramdowns Compromise; Credit Union Journal

The credit union lobby continued yesterday to fight the bill to give bankruptcy courts authority over mortgages, rejecting a compromise that would ease the measure, even as the bill comes to a vote before the House as soon as this afternoon. "While we appreciate their continuing to work with us, we still have serious concerns," said NAFCU President Fred Becker, of a compromise proposal by House Democrat leaders that would require that borrowers share in any profits after a property in bankruptcy is sold with lenders, and make a reduction in interest, rather than principal, the main focus of the bankruptcy judges.

House to Try Again to Let Judges Alter Mortgages; Wall Street Journal

After a brief revolt, the House is scheduled to vote Thursday on a measure that would allow bankruptcy judges to change mortgage terms to help homeowners avoid foreclosure, granting new authority some lawmakers say is central to easing the housing crisis.

Fed Finds Lending Activity Down Again; American Banker

Net lending activity by banks continues to fall, though some areas are showing modest signs of improvement in loan demand and liquidity, the Federal Reserve Board said Wednesday. The central bank's Beige Book, a report on economic activity in its 12 districts, said the industry's turmoil means credit is still tight. Consumer loan demand have generally been on the decline since the last report six weeks earlier, the Fed said, and mortgage demand "remained depressed."

To view the full article, please contact Karen McCallson.

What you need to Know about the Stimulus Money and IF you Qualify

2009-03-05T07:08:00.004-06:00

The stimulus for new home buyers is not that clear. If you have questions on whether you qualify for that $8,000.00 contact me, your local realtor. The federal government is giving certain first-time homebuyers up to $8,000 worth of tax credits, as long as they close on the house by November 30, 2009. The actual amount is equal to 10% of the home's purchase price, up to a maximum of $8,000 dollars. The homeowner gets to keep the money as long as they live in the house for at least three years. You have to not have held title to a home in the last three years to be considered a first time home buyer. The tax credit amount is reduced if you make more than $75,000 a year as a single taxpayer or $150,000 a year as a married couple. You're not eligible if you make more than $95,000 a year or $170,000 as a married couple. It is also a grant not a loan so you don't have to pay it back. So give your local realtor a call 9186197309 and lets talk about whether you qualify.

Once you find out if you qualify then you can make the leap to looking for a home. Right now is perfect to start a search since you will see first which homes are coming online for the start of the big push of the season. So if you have questions give me a call and I will be happy to help you figure out what you need to do to start your feet on the right path to home ownership!

What can my tax refund do for me???

2009-03-04T09:51:00.003-06:00

Lets say you are one of those Americans that actually gets a refund.... what are you going to do with it? Pay bills, put it in savings?? How about put it to work for you. Use that refund to make a down payment on a home. Real estate is a long term investment. So when the time is right you can make a pretty good deal on a great home. Right now builders and home sellers are offering their homes at very competitive prices. Chances are you can get a previously built home with all the bells and whistles at a better price than a new one you are going to build yourself but with so many different offers out there you need to check them all out.

See which neighborhoods offer the amenities you are looking to take advantage of... perhaps you are looking to live closer to work. Find the neighborhood that fulfills most of what you want and then talk to a realtor about what your best bet is on the homes available in that area. Your realtor should be able to give you the skinny on what the home is worth now and what if anything that seller has put into that home to justify the sales price. Or if it is a lot with a builder then the realtor should be able to tell you what homes are going for in that area. Do your homework and 1) find a realtor that is active in that market and you feel comfortable with- there are many realtors available and they all have different styles of working their market. 2) Look at your financial situation with your banker or current mortgage holder. 3) Make a budget and see if you can afford that upgrade or if you need to wait a while.

Ask as many questions as you want or need to. If you have all or as much of the pieces of the puzzle you will feel better as to the decisions you will need to make as to where you want to buy and how much you should spend on any given property. If you are not feeling comfortable with what your professionals are telling you then ask someone other than them to see if what they are saying is correct. Any good professional will tell you to definitely check out what they are saying and not have a problem with it. Lots of people have been burned by trying to over leverage themselves in real estate. The latest oops is the people thinking I can build a home and then when I get close I will put my other home on the market.

Well then the unthinkable happened the bubble burst in some areas causing a national POP and the air started to deflate in places where it shouldnt have... bankers decided to not be as free with their money... and things shut down. Then making two payments got them further and further behind. Before that was the DIY shows portraying how easy it is to buy a home rehab and flip it. Well folks it happens every so often. Their is a food born every minute. Money is relative. If you are smart then you will plan your future and try to be flexible with what happens. A wise man once said to me: If people are buying scooters sell scooters. If people are riding the bus then sell tickets. You have to plan for the inevitable. Sometimes that means you roll with the punches. Think of those people in the depression that lost everything. You have to be able to be willing to do whatever is necessary to get you through to the next point where you arent making two payments. Consider selling both properties or renting them. It can always lead you to the next level where you are a little better off. Longterm means longevity. Real estate is always going to be worth something. And if you are smart you will make a plan and work that plan. Happy Stimulus Hunting.

Todays Financial and Mortgage News

2009-03-04T09:48:00.001-06:00

Obama to test home loan do-overs; CNNMoney.com

Mortgage modifications have a bad rap, yet President Obama is depending on them to stop the foreclosure crisis. Modifications continue to be pushed as the best way to get struggling borrowers back on their feet. The jury is out on whether modifications work long-term. One recent study showed about half of borrowers with modified loans fell behind within six months.

1 in 5 mortgages 'underwater'; CNNMoney.com

The dramatic decline in the housing market has hit Americans hard: 20% of people with mortgages owe more than their home is worth, according to a report released Wednesday. More than 8.3 million U.S. mortgages were "underwater" as of December, said research firm First American CoreLogic. Three months earlier, 18% were underwater. The phenomenon is exploding beyond bubble markets such as California, Florida, Arizona and Nevada, according to Sam Khater, senior economist for CoreLogic.

Private-sector payrolls lose 697,000 jobs; CNNMoney.com

The private sector lost nearly 700,000 jobs in February, according to a report from payroll-processing company Automatic Data Processing released Wednesday, but a separate report showed that employers announced fewer job cuts last months. The ADP report, which is calculated on payroll data, said the private sector eliminated 697,000 jobs on a seasonally adjusted basis in February. That's an increase of 175,000 job cuts, or 25%, from the 522,000 job cuts reported in January.

Today’s Marketplace - The ‘Good’ News, The ‘Bad’ News; Ris Media

Pending home sales declined on the heels of a weakening economy and with some buyers waiting for clarity on housing stimulus provisions, the National Association of Realtors® announced this week. he Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, fell 7.7% to 80.4 from a downwardly revised reading of 87.1 in December, and is 6.4% below January 2008 when it was 85.9. The index is at the lowest level since tracking began in 2001, when the index value was set at 100.

Bernanke’s AIG Blast May Mean More Curbs on Risk, Concentration; Bloomberg

Federal Reserve Chairman Ben S. Bernanke’s blast at American International Group Inc. in Senate testimony yesterday suggests regulators plan further curbs on risk and concentration in the financial-services industry. “If there is a single episode in this entire 18 months that has made me more angry, I can’t think of one other than AIG,” Bernanke told the Senate Budget Committee yesterday. The crippled insurer, which is now under government control, “exploited a huge gap in the regulatory system,” he said.

HOPE NOW: Industry Modified 123,000 Mortgages in January; MBA

HOPE NOW reported yesterday that its members and the greater mortgage lending industry modified 123,000 mortgages in January. This represents the first time since HOPE NOW began to compile data in July 2007 that the number of mortgage modifications exceeded 100,000 in two consecutive months. HOPE NOW, a private-sector alliance of mortgage servicers, non-profit counselors and investors of which the Mortgage Bankers Association is a founding member, also reported that the industry initiated 125,000 formal repayment plans in January, equal to the record high set in October 2008.

Democrats to Temper Mortgage Relief Bill; Washington Post

House Democrats have reached an agreement to narrow the impact of legislation allowing bankruptcy judges to modify troubled mortgages. Under the current version of the legislation, a bankruptcy judge could cut the principal balance of a homeowner's mortgage, lower the interest rate and extend the terms.

Mortgage Bill Language Undermines Protections, Critics Say; Washington Post

A quiet effort to pass legislation increasing protections for mortgage borrowers has provoked opposition from banking trade groups and members of Congress, who say the bill will have unintended consequences and that the idea deserves public debate. The debate over the language is shaping up as an early skirmish in a long, loud battle to overhaul the nation's financial regulations. Democrats are determined to significantly expand the scope of financial regulations, close loopholes and increase enforcement powers.

Lenders keep finding more fraud; Inman News

The report suggests that much of the continued rise in mortgage fraud cases is a legacy of the lax standards some lenders employed during the housing boom. But with the government preparing to spend trillions of dollars to stimulate the economy, some lawmakers are worried that much of that money will be siphoned off by scammers unless laws are strengthened and law enforcement efforts stepped up. After shifting about 2,000 agents into counterterrorism after the Sept. 11, 2001, attacks, the FBI has fewer than 250 agents working on financial fraud cases, said Sen. Patrick Leahy, D-Vt., at a hearing last month where legislation to address the issue was discussed (see story).

Ex-Leaders of Countrywide Profit From Bad Loans; New York Times

Fairly or not, Countrywide Financial and its top executives would be on most lists of those who share blame for the nation’s economic crisis. After all, the banking behemoth made risky loans to tens of thousands of Americans, helping set off a chain of events that has the economy staggering. So it may come as a surprise that a dozen former top Countrywide executives now stand to make millions from the home mortgage mess.

$1 Tril TALF Is Effort To Lift Lending; Investor’s Daily

The government's plan to jump-start up to $1 trillion in lending to consumers and small businesses via hedge funds will be up and running by month's end, the Federal Reserve said Tuesday. The effort, announced in November, is a bid to unfreeze the asset-backed securities market that accounted for 25% of non-mortgage consumer lending but went into hibernation once the credit crisis hit.

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TALF Talk; Wall Street Journal

It should be good news for commercial real estate. The Federal Reserve and the Treasury announced Tuesday the launch of the long-anticipated Term Asset-Backed Securities Loan Facility. Eventually, it is expected to cover securitized loans tied to commercial properties such as buildings, hotels and apartments. But some are worried the TALF program may not be enough to attract investors to the commercial-property sector in its current form.

Fed Moves to Free Up Credit for Consumers; Wall Street Journal

The U.S. launched a program to finance up to $1 trillion in new lending to consumers and businesses, in an ambitious attempt to jump-start credit for everything from car loans to equipment leases. The Federal Reserve and the Treasury Department hope to revive the moribund market for so-called securitized lending, which until last year was central to providing consumer and business loans. Starting March 17, large investors -- including hedge funds and private-equity firms -- can obtain cheap credit from the Fed and use the money to buy newly issued securities backed by such loans.

To view the full article, please contact Karen McCallson.

Todays Financial and Mortgage News

2009-02-24T12:18:00.001-06:00

U.S. Clears Path to Bank Takeovers; Washington Post

The Obama administration yesterday revamped the terms of its emergency aid to troubled financial firms, setting a course that could culminate with the government nationalizing some of the country's largest banks by taking a controlling ownership stake. Administration officials said the change, which allows banks to repay the government with common stock rather than cash, is intended to give banks more capital to withstand a continued deterioration of the economy, and not to nationalize the banking system.

The Economy: Why it feels even worse; CNNMoney.com

As you've heard us and others report, the U.S. economy, more so than other worldwide economies, is dependent on spending decisions made by consumers. Consumer behavior drives spending habits, spending habits drive corporate profitability, and corporate profitability drives the stock market. Success in the stock market is one of those things that make Americans feel better about the economy, along with increases in wages (not happening) and increases in home prices (also not happening).

House bill loosens mortgage modifications; CNNMoney.com

The House is expected to vote on a bill Thursday that would let bankruptcy judges erase some mortgage debt for troubled homeowners and shield mortgage servicers modifying loans from bondholder lawsuits. According to a summary, the legislation would also strengthen the capacity of the Federal Deposit Insurance Corp to deal with bank failures and make permanent an increase in the insured deposit limit to $250,000.

Stimulus: Can it feed the hungry?; CNNMoney.com

For Jesse Taylor, the debate over the federal stimulus plan wasn't about politicians trying to score points or economists parsing the unemployment rate. It was about the growing ranks of hungry people lining up outside his Harlem food pantry. "We're in the midst of a perfect storm: We've received budget cuts, we've seen an increase in the number of people coming in, and we've seen the cost of food going up," said Taylor, senior director of Community Kitchen, a food pantry and soup kitchen run by the New York City Food Bank.

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Lenders Face GSEs' Multifamily Shift; American Banker

After several years of putting most of the multifamily mortgages they bought in their portfolios, Fannie Mae and Freddie Mac are preparing to rev up securitization of such loans. For lenders that do business with the government-sponsored enterprises, this shift in funding strategy will affect the types of mortgages that can be offered to apartment landlords. Securitization requires more standardized loan structures, forcing borrowers to give up customized terms, though in exchange they can get lower rates than those available from portfolio lenders.

Hard Times Spread In CU Land: Losses Mount At CUNA; Credit Union

CUNA said yesterday the crashing stock markets slammed its investment portfolio last year to push the trade association deeper into the red, to the tune of $8 million. The announcement came at in inauspicious time on the first day of the annual Government Affairs Conference, where CUNA is celebrating its 75 year anniversary and the 100th year of credit unions. This year’s conference is already shaded by the gloom over NCUA’s $5 billion corporate credit union bailout, which credit unions are being required to pay for.

Split Over Big Government Persists; Wall Street Journal

When President Barack Obama delivers his initial speech to Congress Tuesday night, a giant and unresolved question will hang over the proceedings: What's the proper role for the government in today's troubled economy? In fact, this is the megaquestion of our time. Yet it is increasingly clear that neither the lawmakers the president will be addressing, nor the nation beyond them, have come close to consensus on an answer. Look up and down Pennsylvania Avenue this week and you can see how the issue is dividing not just the two political parties, but factions within them.

Todays Financial and Mortgage News

2009-02-23T08:54:00.000-06:00

Travel industry scrambles to cope as Americans spend less; USA Today

The sinking U.S. economy is forcing many Americans to cut back on or give up a hallowed tradition: the family vacation. A USA TODAY/Gallup Poll finds that 58% of people who normally take an annual vacation away from home will shrink their vacation spending this year –– or just not go. The finding mirrors a 2009 travel forecast newly issued by consultants D.K. Shifflet & Associates and IHS Global Insight, which research travel behavior monthly.

Economists see deeper pain, followed by gain; CNNMoney.com

A survey of leading economists finds them now forecasting a far deeper and more painful recession ahead in the first half of the year, but a modest pickup in the second half of 2009, followed by a solid recovery in 2010. "The steady drumbeat of weak economic and financial market data have made business economists decidedly more pessimistic on the economic outlook for the next several quarters," said Chris Varvares, the president of the National Association of Business Economics, which conducted the survey of 47 top forecasters in late January and early February.

Obama to Treasury: Start cutting taxes; CNNMoney.com

U.S. President Barack Obama ordered the U.S. Treasury Saturday to implement tax cuts for 95% of Americans, fulfilling a campaign pledge he hopes will help jolt the economy out of recession. The tax cuts are part of a $787 billion economic recovery plan passed by the Democratic-controlled Congress over Republican opposition. The aim is to put more money in the pockets of Americans and stimulate the economy by increasing consumer spending.

Government Gets Chance To Prove It Can Work; Washington Post

For weeks, the economic stimulus package lay in the hands of President Obama and congressional leaders. But with Obama having signed the $787 billion bill on Tuesday, its fate has been dispersed far and wide -- to places such as the state office building in Crownsville, Md., outside Annapolis, where three workers face the challenge of a career.

Citi Seeking More Federal Aid; Washington Post

Citigroup executives have approached federal regulators to discuss steps the government could take to strengthen the troubled company, according to two people familiar with the matter. The giant New York bank is under mounting pressure to convince investors that it can survive its financial problems.

Freddie Mac Investigates Self Over Lobby Campaign; Associated Press
Freddie Mac has hired a District law firm to investigate the mortgage finance giant's $2 million lobbying campaign, which helped beat back legislation that would have forced it and Fannie Mae to sell assets from their portfolios of mortgages and mortgage-backed securities. The secret hiring of Republican consulting firm DCI Group of Washington to lobby against the proposal, introduced in the Senate in 2005, has been the subject of a series of stories by the Associated Press. The values of the portfolios of Freddie Mac and Fannie Mae have plummeted with the collapse of the housing market.

Fed May Need to Recast TALF to Revive Commercial Real Estate; Bloomberg

The Federal Reserve soon may have no choice but to relax the criteria of the Term Asset-Backed Securities Loan Facility, a $1 trillion credit initiative aimed at preventing a meltdown in commercial mortgage-backed securities. Such a move would call for the central bank to bolster the CMBS market by lending against the securities for a five-year term instead of three years and accepting as collateral existing debt as opposed to new bonds.

Washington Pushes for Easy-to-Understand Financial Disclosure; Bloomberg
HUD recently rolled out a new three-page disclosure form to help mortgage borrowers understand closing costs and make comparisons that will allow them to seek out the best deal. The new disclosure rules were deemed "an important step toward developing more consumer-friendly forms" by the Mortgage Bankers Association.

As Doubts Grow, U.S. Will Judge Banks' Stability; New York Times
The Obama administration is set to conduct "stress tests" on the financial condition of the nation's 20 largest banks in an effort to determine how they will fare if the ongoing economic slump deepens. The tests come as concerns mount among analysts and investors regarding the Treasury Department's broad plan to shore up America's banking system, details of which may not be available for weeks. As further proof of the distress banks are under, Citigroup reportedly was in active negotiations with regulators this past week concerning plans for the federal government to take a larger ownership interest in the bank.

Rift Over Stimulus Embroils G.O.P.; New York Times

Republican governors are debating President Obama's economic stimulus package and how to address budget shortfalls at the state level. At the annual winter meeting of the National Governors Association, some governors said the GOP should compromise with Democrats, but their more conservative colleagues said they should reject new spending and taxes to regain the trust of the party's base. Only three of 219 Republicans in Congress voted for the $787 billion stimulus plan, but most governors from the party have not been publicly critical of the spending package.

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Investors in Asia: Guarantee GSE Debt; American Banker
Investors in China, Japan and South Korea say they will hold off purchasing Fannie Mae and Freddie Mac debt or mortgage-backed securities unless the U.S. government offers an "explicit" guarantee. The Asian nations insist that such holdings are too risky without a guarantee even though President Obama plans to inject the firms with $400 billion in capital. There are concerns that the government will have trouble keeping mortgage rates low without interest from overseas investors in securities.

Add Nationalization Talk to List of B of A's Issues; American Banker

It has been a losing battle for Kenneth D. Lewis in the four months since Bank of America Corp. tried to play the hero with a blockbuster deal to save Merrill Lynch & Co. Inc. Things have gotten so bad that talk of nationalizing B of A has become commonplace. Senate Banking Committee Chairman Christopher Dodd weighed in Friday, saying it may be necessary for the government to take over some banking companies. "I don't welcome that at all, but I could see how it's possible," he said in an interview on Bloomberg Television. "I'm concerned that we may end up having to do that, at least for a short time."

UBS Customers Shielded by Swiss Law, Bank Says; Wall Street Journal

UBS AG said its employees would have to violate Swiss criminal law to comply with the U.S. government's demand for the identities of 52,000 private account holders, in its first legal response to the demand in a massive U.S. tax-evasion inquiry. The U.S. court filing Friday threatens to draw both the U.S. and Swiss governments deeper into the already acrimonious showdown between the U.S. and UBS over the bank's private-banking practices.

Split Emerges In CU Movement Over Bankruptcy Cramdowns; Credit Union Journal

Several credit union leaders called on Congress Friday to move forward on initiatives to allow troubled homeowners to restructure their mortgages through the bankruptcy courts just as the mainstream credit union lobby was stepping up its efforts to block the so-called cramdown legislation. "Negotiations have gone on long enough. We’re losing jobs; houses are sitting vacant; we’re getting clobbered; go on and pass it, but we need to get on with this," said Jim Blaine, president of North Carolina State Employees CU, who issued a press release Friday endorsing the cramdown legislation.

For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mccallson@mortgagefamily.com.

Now that we have ensured our Great Great Grandchildren will be broke forever....

2009-02-18T08:39:00.002-06:00

We just passed the largest spending bill EVER..... more fabulous and overloaded than any WPA program and all remember the hallowed FDR era right...? Well you better research and study yourself approved.. did the economy rebound significantly when we printed more money and kept the public on the dole? I dont think so. I know that people need help... are they hurting yes. Is it there own fault - most of the time yes. Did people overspend? Over leverage themselves with credit cards and cause a lifelong boom for Credit recovery counselors... scam artists to help people recover from bad financial decisions---- Hell yes. People wake up and smell the coffee. If you want to own a home then make the payments if bad things happen then start over. Pull it together. Churchs and state governments are already bailing people out 24/7 with food stamps and all kinds of work to walk programs.

Does this mean that some help isnt needed- no I dont agree that we need to study whale patterns as part of the stimulus bill... or whatever else frivoulous stuff they put in that bill. AND if that hadnt been bad enough have you noticed that when Obama was questioned by a lady at his townhall meeting in one of the worst job loss cities... RV capital of the world... Elkhart, IN- when the money is passed out are we going to have to leave Elkhart to get the money o will it come to us directly? He said we will be working with the states closely to make sure that the money is sent out where it needs to go... does that mean NO lady it isnt coming to you directly. I heard one significant player in the Clinton administration stand up and publicly say that only other races not including white men need money... Really. I grew up watching Electric Company and Sesame Street and haven been fairly liberal in my thoughts and actions - I count my friends as many and varied not of races but of nationalities... and this is really gigging me. Why cant poor people be just poor people... do we have to define EVERYTHING BY RACE?? including why we elected Obama?? I get he is the first racially mixed president. What I dont get is why he was elected... other than people needed to get on the government gravy train and most of the old liberals decided that babyboomers should demonstrate and make CHANGE for CHANGE sake... not real change... just print more money more government making decisions for EVERYONE. Be careful what you wish for...

You just might get it and someone else will be living your American Dream. In your house. In your hospital bed getting your treatment because we are now SOCIALISTS. I hope that my grandparents, father and members of my family that fought and died for this country to maintain a Republic arent spinning too quickly.

Have you noticed that people who have socialized medicine generally have to get on a list for any treatments that require- radiology and other treatments... they dont work people ask any military person if they would rather have a private doctor versus one who is making the bare bones and has virtually no consequences if he makes a large mistake in your health care... cause people when you invite the government to run your healthcare you get no say in what happens.

Study other healthcare systems.

Bottom line: Americans of all walks of life- if you want the American Dream you have to work for it... My family lost ways of life during the depression and had to work through it. If you dont learn lessons in whatever form they come during your life then you never learn. You are doomed to repeat those same mistakes. When wanting to save your home... speak with someone knowledgeable about real estate markets in your area. Speak with your financial institution or mortgage broker to find out what you can do to save yourself. If you lost a job then maybe you should cutback to a more realistic lifestyle than what you had. Study your options and be smarter the next time around. Millions of people live on alot less. Millions of people from other countries come here illegally and have much more. How do they do it? THEY WORK. They usually work ALOT. So if you take one thing from this blog... let it be that your previous Americans sacrificed to get where they were (and saved umm what???) so that their children could go to school and have better lives. Unfortunately, this only taught some of us to spend what you make today and bet that more money will be available tomorrow to pay off or save for something else. If you do anything - Do your homework. Learn to save and live on less. Save yourself. Dont look to someone else to save you. You can always ask your community for help. They will help you but you have to help yourself FIRST. I pray that we havent bankrupted the future so someone else can say- those Americans Used to be great.

Todays Financial and Mortgage News

2009-02-18T08:38:00.000-06:00

PNC initiates moratorium on foreclosures; Philadelphia Business Journal

PNC Financial Services Group Inc. said Tuesday it has initiated a moratorium on mortgage foreclosures, effective through Mar. 13 or upon the start of the anticipated loan modification program of the U.S. government.

Pending sales up, closings down in NE Fla.; Jacksonville Business Journal

Pending existing home sales were up 19.5 percent in the Jacksonville area in January, but closed sales were down 19.8 percent, according to the Northeast Florida Association of Realtors. The NEFAR statistics show that pending sales, or those where contracts have been signed but the sale has not closed, have increased two months in a row. In January there were 1,060 pending sales, up from 887 in January 2008.

Americans’ confidence in economy waning; Jacksonville Business Journal

On the same day that President Barack Obama signs a $787 billion economic stimulus package into law, a new survey finds that Americans have continued to lose confidence in the economy and in their own financial security. The Country Financial Security Index found 57 percent rating their financial security as fair or poor, while 40 percent rated it as excellent or good.

Obama's foreclosure fix on the way; CNNMoney.com

Obama administration officials are hammering out the details of a $50 billion foreclosure prevention program that the president is set to unveil Wednesday in Arizona, sources said. Details remain scarce, but officials are looking to help homeowners who are in danger of defaulting on their mortgages, as well as those already behind, according to sources close to the discussions. Until now, most government and industry efforts have centered only on the delinquent.

Final score: $8,000 for homebuyers; CNNMoney.com

There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes. A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision.

Builder Confidence Still Sagging; Inman News
According to the latest National Association of Home Builders-Wells Fargo Housing Market Index report, industry sentiment increased slightly in February from a record low reported last month. Still, the index lingered in the single digits for a fourth consecutive month, climbing to a reading of just nine; any index score under 50 indicates that more builders consider sales conditions unfavorable rather than favorable. A component of the index that measures the volume of traffic by prospective buyers, however, increased three points to a score of 11.

Fannie Mae rescinds 4-property limit for investors; Inman News

If you turn down Pandora and listen closely, you can hear real estate investors in Chicago cheering all the way from Cincinnati. Read the Fannie Mae official announcement -- you get the sense that the nationalized group is getting with the program. This excerpt comes from the lead paragraph: "Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery."

Lending of Bailout Recipients Is Down; Washington Post
The Treasury Department reports that mortgage originations ebbed $3.6 billion, or 15 percent, in December at Bank of America and Citigroup--the two banks that received the most stimulus funding from the government. Although the largest bank recipients of government assistance are lending less, the Treasury suggests that most of the decline in home lending stems from the collapse of other financiers such as Wall Street, small-business lenders and mortgage lenders. The Treasury believes lending would have declined more during the last three months of 2008 if the big banks had not received any aid.

Local Briefing: Freddie to Sell $3 Billion in Notes; Washington Post
On Feb. 19, Freddie Mac expects to sell no less than $3 billion in three-year reference notes. The notes will mature on March 23, 2012.

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Distressed Homeowners Get New Options in Plan; Wall Street Journal
Sources say the Obama administration's housing plan, to be unveiled Feb. 18, will allow bankruptcy judges to modify mortgages and will use Fannie Mae and Freddie Mac to refinance borrowers who owe more than their homes are worth but are current on their payments. It also will reduce loan payments for struggling homeowners through lower interest rates or longer loan terms, with the government possibly giving lenders a subsidy of $800 to $1,000 per loan to minimize losses.

Housing Fix's Challenge: Making Modified Loans Attractive; Wall Street Journal

Loan modifications must lower the monthly payment for borrowers if they are to prevent foreclosure, critics say. According to Jay Brinkmann, chief economist of the Mortgage Bankers Association, mortgage servicers are trying to make workouts more affordable for borrowers; and he adds that increases in payments from workouts typically are small. Alan White, a professor at Valparaiso University School of Law in Indiana, says 12 percent of recent loan modifications included some forgiveness of principal, interest and fees, compared to10 percent in November and 2 percent between July 2007 and June 2008.

On Any Level, 'Mezz' Lenders Find No Shelter From Losses; Wall Street Journal
As the commercial property boom waned earlier this decade, mezzanine debt became a hot trend among private-equity firms and hedge funds, which made between $50 billion and $75 billion in "mezz" loans--debt that fills the gap between the borrower's equity and the first mortgage. Billions of dollars have since been lost in a downslide that will only worsen as the slump in commercial real estate drags on. The losses are spilling over to other property sectors, as mezz debt was one of the big enablers that allowed commercial realty developers and investors to take part in the broader speculative binge on Wall Street.

Commercial MBS Defaults Up; American Banker
Standard & Poor's reports a rise in delinquencies in commercial mortgage-backed securities, which were up almost two-fold in the fourth quarter from the prior three-month period. The report indicates a jump in CMBS delinquencies to 1.1 percent at the end of last year from 0.27 percent in March 2007, and S&P credit analyst Larry Kay says the delinquent dollar amount climbed to $6.86 billion from $3.98 billion in December 2003. This year, the ratings firm predicts more multiple-class downgrades from single transactions.

For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mccallson@mortgagefamily.com.

Sellers Worrying on Whether to market their home Now

2009-02-06T11:56:00.003-06:00

It seems that lately we have had more calls of people worrying whether or not to put their home on the market. Well of course an agent will say of course put that home on the market without thinking... but here lately a good agent will say wait. Get the things you need done prior to the listing- wait for the big Push! Now the big push is dependent on your local school enrollment. Most buyers and sellers want to be closed, moved and in the new home prior to school starting the new year so that is important... when thinking when to list. Now if your home is not in an area where families might buy... then your big push might just be spring... ! But.. if your home is located in an area where weather is great year round... then local markets will drive when a good time to list will be. If you are located in one of the larger markets where inventory is high then you might as well get it on the market. Buyers are looking for deals now... more so than before. Unfortunately for sellers deals can be had because the sellers probably didnt do their homework before or got caught up in over leveraging themselves.. and then the shoe dropped on them. Smart Sellers know that by making your home appealing and marketing the best attributes of the home are always going to sell it... if it is updated and ready to move in... then you should be able to get a competitive price. If you are looking for high end price you better have high end amenities and desirable location. Remember the name of the game is that agents cant sell your home for more than a buyer is willing to pay for it.... and if its a loan thing... than more than what it will appraise for!! Good Luck and Happy Selling/Buying!

Freddie Mac Mortgage Market Survey

2009-02-06T11:56:00.001-06:00

Freddie Mac (FHLMC) Weekly Mortgage Market Survey
A weekly rate survey that is made up of 125 lenders (i.e. thrifts, mortgage lending companies) and is used by consumers and mortgage lenders to monitor rate trends and evaluate mortgage options.
	Week Ending	FHLMC Averages		Brands Averages
		30-Year	15-Year	30-Year	15-Year
	02/06/2009	5.250%	4.920%	4.988%	4.831%
	01/30/2009	5.100%	4.800%	5.175%	4.892%
	01/23/2009	5.120%	4.800%	5.175%	4.835%
	01/16/2009	4.960%	4.650%	4.892%	4.763%

Are you Suffering in your home??

2009-02-03T08:41:00.003-06:00

Todays economic outlook is so depressing when you look at it from out of the windows of a undervalued home. Depending on where you live will help you sparkle those windows. Everyone is dragging around worrying but think of this situation in clear terms..: Can you afford that home? Could you afford it? Time is always the great equalizer. If you are having trouble making those payments or are simply scared that you wont be able to in the future... contact a realtor. Ask them what the market is like in your area. Find out in hard numbers what you can do. If you can get your home ready for the new spring time push. Remember in real estate people will always be selling or buying. New jobs, new moves for any reason.

Look at what your home, your neighborhood has to offer. Are you close to a school? Are you in a tight neighborhood that enjoys outdoor affairs or seasonal gatherings? If you are looking for someone like you what drew you to your home? Take care of little projects that you were putting off until, someday. Get those done. Maybe paint if the weather is right. The optimum time to get your home ready is NOW. The biggest push is April. The most activity you will see in open houses and new homes being advertised is in Late February, March. If the weather in your area stays nice you may be able to get away with an earlier start. Look at the details and make sure that you can afford to sell at what your market is drawing. An agent can only sell your home for what it is worth. If you are smart and price is competitively then you should be able to make it a more lucrative situation for yourself (conditions, location, amentities will apply) .

So if your sky is falling take a look and see what you can do proactively to make it better. The sky is always darkest before the dawn! Happy Real Estate!!

Mortgage Industry and Economic News

2009-02-03T08:39:00.000-06:00

Foreclosures dominate home sales; CNNMoney.com

Real estate values around the nation have collapsed, and sales of foreclosed and "underwater" homes now dominate many housing markets, according to a report released Tuesday. The report, from Zillow.com, a real estate Web site, revealed that with foreclosure soaring, nearly 20% of the nation's home sales in 2008 were of bank-repossessed properties. Another 11% were short sales, in which homeowners owed more in mortgage debt than their homes were worth.

More families move in together during housing crisis; USA Today

Love isn't all that's keeping family together today. The bruising housing market is, too. Last year, Kanessa Tixe's dad had just finished building a three-family house when he lost his superintendent job in February. He wasn't sure how to make the $5,000-a-month mortgage on the new house in Queens, N.Y. So Tixe and her siblings decided to help out in an unusual way: They moved in. In December, her father moved into the first floor; her stepsister and husband moved into the second floor; and her stepbrother and Tixe took the third floor. The entire family has become roommates, banding together to pay rent and help their dad with the mortgage until he finds long-term tenants.

Fed: Banks still tightening loan standards; USA Today

U.S. banks were miserly with credit through mid-January, as the economy plunged and loan demand deteriorated, the Federal Reserve said Monday in a quarterly lending survey. Banks continued to impose tight conditions on borrowers, even as the Treasury Department provided about $200 billion in capital infusions under a special $700 billion financial rescue law. Treasury officials have pressed lenders to make loans to good clients to get the economy moving. The Fed has begun buying up to $500 billion in mortgage-backed securities to unfreeze lending.

NAHB Partners with Rebuilding Together for Charitable Remodeling; Ris Media

The National Association of Home Builders (NAHB) and Rebuilding Together formalized a long-standing partnership to rehabilitate homes owned by low-income individuals. The agreement is a natural fit for two organizations dedicated to improving the quality of homes and giving back to needy communities. Through their local NAHB Remodelers councils, remodelers who have partnered with Rebuilding Together have donated many hours of skilled labor for remodeling low-income homes. Remodelers also work to improve veterans’ homes under the support of the Veterans Housing Initiative. Rebuilding Together and NAHB Remodelers jointly support work to remodel homes for the aging population and people with disabilities so that they may experience a greater quality of life with better functioning homes.

Are Worse Days Ahead as Economy Contracts?; Ris Media

The U.S. economy contracted 3.8% in the final three months of last year-the biggest such shrinkage in almost 27 years-as a deepening recession gripped the nation, the government reported Friday. As bad as that number was, mainstream economists had been expecting a much bigger contraction, and Wall Street cheered. All three stock indices opened in positive territory in early trading after two days of steep losses.

Obama Foreclosure-Relief Plan May Guarantee Rewritten Loans; Bloomberg

The Obama administration is considering government guarantees for home loans modified by their servicers, seeking to stem the record surge of foreclosures that’s hammering U.S. property values. The proposal, which may also have the taxpayer share in the cost of reducing mortgage payments, is aimed at shielding lenders from default after they loosen loan terms for struggling borrowers. Comptroller of the Currency John Dugan, who regulates national banks, said yesterday that “working out the details of it is still something that’s ongoing.”

Forgotten in foreclosures, renters forced to live in decaying homes; Boston Globe

Nadia Toussaint and her two children, ages 4 and 9, have been eating takeout food for six months, ever since their stove stopped working. But that's not the only problem with their Roxbury apartment. The kitchen sink leaks, cabinets hang off hinges, and rats sometimes climb on the kitchen table or burrow into trash bins.

Just a Band-Aid on the Foreclosure Problem?; Washington Post

Many homeowners who have been given a break on their troubled mortgages quickly end up in trouble again, a growing problem that is bedeviling efforts to stem rising foreclosure rates. A recent study by the Office of the Comptroller of the Currency found that more than 50 percent of troubled homeowners had missed at least one payment six months after a lender modified their loan, and lenders and other researchers report similar default rates on modified mortgages.

GSE Dividends Under Review; Washington Post

Fannie Mae and Freddie Mac won't be allowed to pay a dividend on their preferred shares while under government control, and the United States will assess whether to permit payments in the future, the companies' regulator said. "As we come out of conservatorship, we have to look at what may happen to the preferreds," James B. Lockhart III, director of the Federal Housing Finance Agency, said in an interview.

Construction Spending Off 1.4%; Investor’s Business Daily

Dec.'s decline followed Nov.'s 1.2% drop, twice as bad as the initial reading. Once again, spending on residential construction led the descent, falling 3.2%, the 20th drop in 21 months.

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NCUA $5 Billion Premium Could Erase CU Industry’s Net Income For 2009; Credit Union Journal

Criticism was building yesterday of NCUA’s $5 billion corporate credit union rescue plan, which industry experts are predicting will wipe out all credit union profits for this year. CUNA called on the NCUA Board to reconsider the funding of the corporate rescue, which will be engineered by assessing a premium on all credit unions insured through the National CU Share Insurance Fund. The $5 billion special assessment will fund a $1 billion infusion into U.S. Central FCU, guarantee all uninsured deposits in all of the corporates and replenish reserves in the NCUSIF to a level of 1.3% (dollars reserved per $100 of insured deposits).

State Officials Fault Modification Report; American Banker

Fifteen state officials blasted a federal report that said loan modifications had led to increased redefaults. The members of the State Foreclosure Prevention Working Group said Monday that the report, issued by the Office of the Comptroller of the Currency and the Office of Thrift Supervision, lacked information about its methodology and whether loans were redefaulting because modifications were too timid.

Credit Standards Tighten, Borrower Demand Weakens; American Banker

Though the government has allocated almost $400 billion to attempt to resuscitate bank lending, a survey released Monday by the Federal Reserve Board made clear that bankers are tightening credit standards across the board. The periodic survey of 53 loan officers at domestic banks found tighter standards in most areas of lending, including consumer and commercial and residential real estate loans. The bankers approving loans typically made them more costly and restrictive.

Why Some Say Cramdowns Good for Banks; American Banker

Much of the banking industry continues to resist mortgage bankruptcy reform, but some observers are arguing that bankers would actually see a benefit if the legislation passed. Legislation letting bankruptcy judges rewrite mortgage terms would give servicers justification to pursue principal reductions — something investors holding loans have long resisted. It also would address one of the issues prolonging the housing downturn: Half of all borrowers who receive loan modifications end up defaulting again, leading to more of the foreclosed properties that have flooded the market.

State Regulators Issue Examination Guidelines for Originators of Reverse Mortgage Loans; National Mortgage News

In response to concerns from state regulators about the risks associated with reverse mortgages, the American Association of Residential Mortgage Regulators and the Conference of State Bank Supervisors have issued examination guidelines to ensure that lenders' business practices and operations are sound. The Reverse Mortgage Examination Guidelines touch on marketing, underwriting, policies and procedures, quality control and servicing.

Banks Adopt Tighter Terms for Lending, Survey Says; Wall Street Journal

Most U.S. banks tightened lending to consumers and businesses in recent months, an ominous sign for an economic recovery pegged to easing the flow of credit to borrowers. In a survey of banks released Monday, the Federal Reserve said about two-thirds of banks' loan officers reported that they tightened terms for business loans over the past three months. While that was better than the 85% reporting in October that they had tightened terms -- such as the cost of credit or collateral requirements -- over the prior quarter, the survey still shows how strict lending standards instituted in the wake of last fall's credit freeze continue to block potential borrowers from accessing credit.

Fed Struggles to Damp Rise in Mortgage Rates; Wall Street Journal

President Obama has vowed to lower mortgage rates for Americans, but that may be easier said than done. Since the start of this year, the Federal Reserve has spent some $70 billion buying bonds backed by home loans in an attempt to lower mortgage rates. After an initial success, however, rates are starting to drift higher again. It is a reminder of the problems facing the U.S. housing market and highlights the limits of the Fed's ability to stabilize conditions. The central bank has pledged to buy $500 billion in mortgage bonds by June, with the promise that it would purchase more if necessary.

For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mccallson@mortgagefamily.com.

Todays Industry and Mortgage News

2009-01-18T12:55:00.004-06:00

" Tulsa apartment rents jump 7.4 percent in 2008

By ROBERT EVATT World Staff Writer

Tulsa-area apartment rents continued their steep climb in 2008, though renters may start to see some relief this year.Overall rents increased 7.4 percent, according to a survey by CB Richard Ellis/Oklahoma. Average rates now range from $481 for a one-bedroom unit to $660 for a two-bedroom, two-bath unit — the highest levels ever seen in Tulsa.

David Forrest, the author of the report, said rents typically rise when the local economy is doing well and adding jobs, though last year's frustrations in home buying and home construction contributed by leading more people to rent.

However, he noted most of the year's growth occurred during the first nine months. After that, the recession kicked in and rent increases slowed to a crawl, Forrest said.

The bad economic news affected occupancy as well, as the year-end total of 92 percent was down half a point from 2007, mostly due to move-outs in the recent few months.

But not all indicators hint to a coming drop in rents. Forrest said that with only 1,500 new apartment units constructed since 2005 and only 1,500 more coming through 2010, the apartment market probably won't face an oversupply.

Also, Tulsa's economy seems to be holding its own, at least for now, he said. The state's unemployment rate was 4.5 percent as of November, while the nation's rate hit 7.2 percent last month."*1

Well that is good news. Sort of - well lets say the glass is half full anyway. Oklahoma particularly Tulsa and Northeast Oklahoma, hasnt been tainted by all the bad news going on else where. Our homes are not in an oversupply- and it seems neither is the new apartment market making buying a home more appealing anyway. Prices are still good for both buyers and sellers. If you talk to people on the street most will say I know the market is terrible. Well in reality our numbers are not bad. We are still selling and listing properties and the same old adage works... if the property is ready to go then it wont last long. There are still properties that command multiple offers and when that happens you are more likely to get more than what you asked for when you started. AND that is always a good thing. With times like today all over the nation it is smart to have no room for error. Make a budget. Work that budget for atleast six months before you try to buy. That six months could be the difference between a smart move and a disaster. Keep your eye out for homes that have been listed for awhile and see if you can work a deal with them. Homes that are vacant have owners usually ready to stop paying two sets of utilities and house payments. Now is a great time to buy real estate. So watch your money and your credit. Try to put down as much as you can. In times like these money is always the great equalizer. Even if you have bad credit money can help to ease that stigma. Talk with local lenders as opposed to the harder hit national banks that have more stringent loan requirements. Credit Unions are also a fabulous way to go as well when looking at a home loan. There are so many benefits of going through a credit union.

When times are tough the smart get looking for alternative ways to keep more of their dollars. You just have to look before you leap and ask questions. Ask as many questions as you can up front and see what the best move is for you- it may be that moving right now is not the best but you can find out what you need to do to make it happen. As always your best bet is to contact a realtor- find out what your market holds and how your personal standing affects your real estate reality.

Good Luck and Happy Hunting!!

*1 Read entire article on the Tulsa World Article on the Web at

http://www.tulsaworld.com/business/article.aspx?subjectid=32&articleid=20090117_32_E1_Tlaaep565306

Todays Financial and Mortgage News

2009-01-18T12:28:00.000-06:00

Phila.-area foreclosure filings up 98% last year; Philadelphia Inquirer

Foreclosure filings in the Philadelphia area increased by 98 percent last year and by 164 percent in Camden, N.J. The rate in Philadelphia was much lower than the national average while Camden was slightly above it, according to RealtyTrac, a California company that publishes foreclosure data.

Finding opportunity in foreclosures; Inman News

Many people are predicting that 2009 will be even worse than 2008 in terms of foreclosures. The real issue is not how many people end up facing foreclosure, but how many work out their issues and are able to stay in their homes. While the headlines continue to highlight the volume of foreclosure filings and substantial price declines in many markets, Hope Now released a fascinating report outlining how many people they have helped stay in their homes.

Bank of America getting extra $20B in bailout funds; USA Today

The U.S. government early Friday morning agreed to invest $20 billion in Bank of America, and to protect the bank against up to $118 billion in potential losses from bank assets related to risky mortgage loans. Early Friday morning, Bank of America reported a $2.39 billion fourth-quarter loss and slashed its quarterly dividend to a penny. Meanwhile, Merrill Lynch posted a $15.31 billion loss for the period. The company reported a profit of $4 billion for the year.

More action by federal government urged for lending; Chicago Sun Times

With the housing market struggling, 56 percent of consumers are open to the federal government taking a more active role in overseeing mortgage and lending practices, according to a recent survey. Thirty-eight percent prefer that private companies oversee their businesses. This is a marked shift from the previous year's survey, which showed respondents were evenly split on the issue of government involvement.

Reverse Mortgages Get Popular; Rule Changes Enhance Appeal; Investors.com

New federal rules, a tough housing market and devalued retirement investments will likely spur more seniors to consider reverse mortgages. They'll get some welcome financial flexibility, but with some risk.

Rush to refinance mortgages spurring delays; LA Times

Borrowers are rushing to refinance their mortgages at record low interest rates but face unexpected delays as swamped lenders struggle to cope with the surge at a time when layoffs have sharply cut staffing. Bank of America Corp., which started shedding 7,500 employees after its July merger with Countrywide Financial Corp., recently yanked 300 workers from its home equity line department to help deal with refinancing requests, said Matt Vernon, the bank's national sales executive.

Multiple Applications for Mortgages; Washington Post

As mortgage interest rates continue falling to new lows, a growing number of borrowers are applying to more than one lender to increase their chances of getting approved for refinancing. Anecdotal evidence suggests that only about half of the borrowers trying to refinance are getting approved, down from 60 to 70 percent during previous refinancing booms, said Doug Duncan, chief economist at mortgage financier Fannie Mae. As a result, borrowers are getting frustrated and anxious.

30-Year Fixed Mortgage Rate Drops Under 5 Percent; Chicago Tribune
Freddie Mac reports that the 30-year fixed mortgage rate fell to 4.96 percent for the week ended Jan. 15 from 5.01 percent the prior week, marking the 11th straight weekly decline. During the same period, the 15-year fixed mortgage rate edged up to 4.65 percent from 4.62 percent; and the five-year adjustable mortgage rate slipped to a three-year low of 5.25 percent. Additionally, the one-year ARM dropped to 4.89 percent from 4.95 percent.

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FDIC Settles Beal Lawsuit; Wall Street Journal

The Federal Deposit Insurance Corp. agreed to pay $90 million to settle allegations that it gave out high-interest subprime mortgages to unqualified borrowers, helping to close an embarrassing chapter in the agency's history. The payment settles a federal lawsuit brought by Beal Bank SSB, a lender that purchased thousands of the FDIC-originated mortgages in 2001 and 2002. Closely held Beal, based in Plano, Texas, had claimed the borrowers defaulted at alarmingly high rates due to the FDIC's poor oversight of lending practices at a bank it controlled.

House Would Cover CUs Under The TARP; Credit Union Journal

House leaders agreed yesterday to add a provision to the Troubled Asset Relief Program that would allow credit unions to obtain cash infusions under the TARP, but put off a final vote on the bill until next week. Still, prospects for the credit union provision appear dim as the Senate is not expected to pass the bill, which would provide tens of billions of dollars to restructure at-risk mortgages and make last fall’s increase in federal deposit insurance to $250,000 per account permanent.

MBA Backs Federal Oversight; American Banker
The Mortgage Bankers Association is calling for the creation of a federal mortgage regulator to oversee nondepository lenders, which the group's head says could help the industry regain credibility. MBA Chief Executive John Courson says a national regulator is needed because of patchwork state laws and the lack of regulation in some states. He notes that the federal watchdog would set the bar but state regulators could remain in charge of examinations, audits and enforcement.

For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mccallson@mortgagefamily.com.

Todays Mortgage and Industry News

2009-01-15T07:08:00.000-06:00

Century 21 bids adieu to TV ads; Inman News

Century 21 Real Estate will stop running national television spots in order to beef up online advertising such as display ads, search-engine marketing, and partnerships with real estate listing sites. The company is confident the move will benefit brokers, agents and their clients, saying it boosted online lead generation by more than 237 percent in 2008 -- the cost per lead dropped 62 percent from a year ago.

Defining real estate part-timers; Inman News

Necessity has driven some real estate agents to take up a second job or even a third job to make ends meet during these challenging economic times. And some agents have relegated their role in assisting buyers and sellers to part-time status while awaiting a market recovery or weighing an exit from the real estate business.

Fed Backs Obama's Bailout Request; Washington Post

Top officials of the Federal Reserve yesterday offered the most detailed proposals yet for overhauling the rescue of the financial system, urging Congress to release the next batch of bailout money and arguing that a stimulus program alone is not enough to keep the economy from plunging further into recession.

Fannie Mae Won't Evict Renters; Washington Post

The mortgage finance company Fannie Mae said it has adopted a policy allowing renters to remain in their homes even if their landlord enters foreclosure. The policy will allow renters living in foreclosed properties to sign new leases with Fannie Mae, a District company, while the property is up for sale. Freddie Mac of McLean said it is working on a similar policy.

Mortgage applications surge; CNNMoney.com

U.S. mortgage applications jumped in the first full week of 2009 as record low interest rates spurred the greatest demand for home refinancing loans in more than 5-1/2 years, data from an industry group showed on Wednesday. Low mortgage rates, however, have yet to fuel demand for loans to purchase homes.

Citi and Morgan to merge brokerages; CNNMoney.com

Citigroup confirmed speculation Tuesday that it plans to merge its Smith Barney brokerage division with that of peer Morgan Stanley, a move that is expected to mark the beginning of a break-up of the troubled banking giant. Under the terms of the agreement, Morgan Stanley (MS, Fortune 500) will take a 51-percent stake in the joint venture and pay Citigroup (C, Fortune 500) $2.7 billion for the stake.

U.S. Retail Sales Decline for a Record Sixth Month; Bloomberg

Sales at U.S. retailers fell more than twice as much as forecast in December as job losses and the choking-off of credit led Americans to cut back on everything from eating out to car purchases. The 2.7 percent decrease, the sixth consecutive drop, extended the longest string of declines in records going back to 1992, the Commerce Department said today in Washington. Purchases excluding automobiles slumped 3.1 percent.

MBA, Trade Groups Ask Hill Support for TALF; Mortgage Bankers Association

The Mortgage Bankers Association and 11 industry trade groups asked the House Financial Services Committee to extend provisions in proposed legislation to include relief to the commercial real estate market. The Jan. 13 letter to Financial Services Committee Chairman Barney Frank, D-Mass., Ranking Member Spencer Bachus, R-Ala., and other committee members said Section 403 of H.R. 384, the TARP Reform and Accountability Act, which includes explicit authority with regard to commercial real estate loans and commercial mortgage-backed securities, should be used to help unfreeze $3.4 trillion in commercial mortgage market assets.

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Nominee Says HUD to Resume Major Role in Housing Recovery; American Banker

Shaun Donovan, the secretary-designate of the Department of Housing and Urban Development, pledged Tuesday to return the agency to the forefront of the government's response to the housing crisis if he is confirmed by the Senate. "Housing is at the root of the market crisis we are now experiencing, and HUD must be part of the solution," Mr. Donovan told Senate Banking Committee members at his confirmation hearing.

CUs Seek Cover Under TARP; Credit Union Journal

Congressional credit union allies were working last night to get language into a bill to be voted later this week that would amend the Troubled Asset Relief Program in a way that would enable credit unions to obtain cash infusions under the TARP. The language would allow credit unions to accept outside forms of assistance, such as that provided under TARP, and count it as capital, something currently prohibited for most credit unions. "This would allow credit unions to get capital through the TARP program," said Fred Becker, president of NAFCU, which crafted the language with the California CU League and CUNA.

J.P. Morgan Cuts Use of 3rd-Party Brokers; Wall Street Journal

J. P. Morgan Chase & Co. said it will stop underwriting prime mortgages that are originated through third-party brokers, relying instead on its vast branch network to make home loans to creditworthy customers. The move reflects a retreat by financial institutions that once leaned heavily on brokers to help fuel the mortgage business. Since housing prices collapsed, banks have turned away from brokers and said that loans originated through that channel have proved to be less creditworthy than mortgages that are originated inside their own walls.

Bailout Buddies; Wall Street Journal

The nation's struggling commercial real-estate owners and lenders won a key ally on Capitol Hill late last week when House Financial Services Committee Chairman Barney Frank introduced legislation that encouraged the Fed and the Treasury to extend a $200 billion debt-relief program targeted at consumer debt to commercial real estate. But they still aren't satisfied. In a letter sent Tuesday to Mr. Frank and Rep. Spencer Bachus, the committee's ranking minority member, a coalition of real-estate industry and other business groups urged lawmakers to establish a separate facility at the Federal Reserve Bank of New York for commercial real estate that is backstopped by the Troubled Asset Relief Program, or TARP.

Price Drops to Continue; Wall Street Journal

Home prices are likely to be lower in two years in more than one-quarter of the nation's housing markets, according to a new study by mortgage insurer PMI Group Inc. The study "tells us ... that we are far from a rebound in prices," says PMI chief economist David Berson. The risk that home prices will be lower in the third quarter of 2010 increased in 97% of 381 metro areas, according to the PMI analysis, though in many markets that risk remains relatively low.

Financial Crisis Hits Home-Loan Banks; Wall Street Journal

The Federal Home Loan Bank of Seattle said it expects to fall short of one of its capital requirements because of a continuing drop in the value of certain mortgage-backed securities. The warning is the latest sign of the risk that the federal government may have to prop up some of the 12 regional home-loan banks, a vital source of funding for thousands of banks across the country, particularly small, local institutions. In September, the Treasury established a credit facility for the home-loan banks in case they have trouble raising money through their regular global debt sales. So far, they haven't tapped that Treasury line.

Apartments Try to Stay Afloat; Wall Street Journal
More and more apartment owners and developers are scrambling to stay afloat as escalating job losses and the deteriorating U.S. economy make hiking rents difficult and eat into projected revenues from the various communities. Much the apartment sector's woes have to do with troubles in converting rental apartments into for-sale condominiums. Fannie Mae and Freddie Mac currently have upwards of $200 million of these loans on their books and delinquency rates are climbing.
For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mccallson@mortgagefamily.com.

Todays Mortgage and Industry News

2009-01-13T12:38:00.001-06:00

During financial pinch, banks reduce credit card rewards; USA Today

Banks are getting stingier with their credit card rewards programs. American Express recently axed the domestic companion airline tickets provided free to Platinum and Centurion cardholders. JPMorgan Chase rolled out what industry watchers say are less generous rewards for some customers. And Discover now requires cardholders to forfeit cash rewards if an account is inactive for 18 months or if they pay more than two months late.

Bernanke: More bank bailouts needed; CNNMoney.com

Federal Reserve Chairman Ben Bernanke said Tuesday that President-elect Barack Obama's proposed fiscal stimulus package could help the economy, but he added that additional bailouts of financial institutions may also be needed to bring about a sustained economic recovery. Bernanke, speaking in London, said in his prepared remarks that the nearly $800 billion plan being discussed by the incoming Obama administration and the newly elected Congress "could provide a significant boost to economic activity." He did not comment on or endorse any specifics of the nearly $800 billion.

The case for a quick recovery; CNMMoney.com

There is no debate that the U.S. economy is in terrible shape at the moment. Nearly 2.6 million jobs were lost last year, with the majority of them coming in the final four months of the year. And some economists are forecasting as much as a 5% to 9% drop in economic activity during the fourth quarter, which could be the biggest drop in 50 years. But some economists are starting to believe that there could be a much stronger and quicker recovery than is now widely expected.

The 2009 economy and your wallet; Money Magazine

Under normal circumstances, the election of Barack Obama would have meant a lot for your wallet. As a candidate, Obama promised to shift the burden of taxes toward the affluent, get health coverage to the uninsured and slap tougher regulations on financial products.

But these aren't normal circumstances. Major financial institutions have disappeared virtually overnight. American automakers are now in danger of doing the same. Retirement funds are drying up and job losses have skyrocketed.

FDIC asks banks to monitor use of bailout money; New York

Federal regulators are asking financial institutions to monitor their use of government money received under the $700-billion rescue plan and other support. Banks and other financial institutions should track how the federal money or guarantees they received helped them boost "prudent lending" and efforts to help at-risk borrowers avoid foreclosures, the Federal Deposit Insurance Corp. said yesterday in a directive issued to the roughly 5,100 state-chartered banks and savings and loans for which it is the primary regulator.

Fed report shows loan inequities; Boston Globe

Adding empirical evidence to what many community and housing activists already know anecdotally, a new report by the Federal Reserve Bank of Boston documents how minorities in Massachusetts were disproportionately affected by the mortgage crisis. African-Americans, for example, overwhelmingly used subprime mortgages to buy homes in 2004 and 2005. And in 2007 almost half of African-Americans who moved out of their homes did so through foreclosure rather than a sale, the report said. Many of those lost homes were small multifamily properties. As a group, these houses make up 10 percent of the state's housing stock, but they made up nearly half of all foreclosed housing units in Massachusetts in 2007, according to the study. About two-thirds of foreclosed multifamily properties were purchased by minorities between 2003 and 2006.

Got Credit? Debt Market Starts To Thaw As Mortgage Rates Fall, Spreads Narrow; Investors.com

A thaw may be under way in frozen credit markets. Mortgage rates are falling to record lows, key credit measures have improved, and corporate bond sales have started off strong in the new year. Fears reached their zenith after Lehman Bros.' mid-September failure, pushing the economy and global financial markets into a tailspin.

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CUNA Plan Would Add New Guarantees For Corporate Deposits; Credit Union Journal

CUNA has proposed a corporate aid plan to NCUA which would provide additional guarantees of corporate deposits beyond the current $250,000 per account provided by the National CU Insurance Fund. The additional guarantee would help shore up confidence in the corporate network, which has suffered over the past year by growing unrealized losses on the corporates’ vast investment portfolios, according to Bill Hampel, chief economist for CUNA, who developed the new plan.

FDIC Tells State Banks to Monitor Tarp Uses; American Banker

Amid criticism that banks are hoarding the money they have received from the government, the Federal Deposit Insurance Corp. on Monday became the first bank regulator to require its supervised institutions to monitor and report how they have spent those funds. The agency effectively preempted lawmakers, many of whom have pushed such a requirement in pending legislation. But it was unclear whether other regulators would follow suit, or whether FDIC-supervised banks are being singled out.

Reverse Mortgage Originations Climb; National Mortgage News

Originations of Home Equity Conversion Mortgages increased 6.4% last year over the previous year, to 115,176, the Department of Housing and Urban Development said last week. The loans are reverse mortgages insured by the Federal Housing Administration.

(Reverse mortgage volume is usually measured by the number of loans, because the ultimate balance is not known until the borrower sells the home or dies.)

Number of Homes Listed For Sale Fell in December; Wall Street Journal

The number of homes listed for sale declined in many metropolitan areas last month, but the drop was smaller than has been typical for the holiday period. The supply of homes available for sale in 29 major metropolitan areas in December was down 6.4% from a month earlier, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif. The ZipRealty data cover all single-family homes, condominiums and town houses listed on local multiple-listing services in metro areas where the firm operates.

For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mccallson@mortgagefamily.com.

Todays Mortgage and Industry News

2009-01-13T12:37:00.000-06:00

Economic downturn pounds commercial real estate market; USA Today

Tom Howorth is feeling the impact of the crumbling real estate market. The Oxford, Miss., architect's firm has dwindled from 18 people to 11 since mid-2007 as clients have postponed or canceled major projects. The situation appears to be getting worse. Colleagues in other parts of the country, who had been faring better, now tell Howorth they are also starting to see a steep drop in business.

Gloomy financial outlook drags profit predictions down; USA Today

The deepening recession is making it harder for companies to make money, prompting analysts to slash profit outlooks and investors to dial down their early-year optimism. Profit woes once centered mostly in the financial and consumer sectors have spread to virtually every corner of the economy. With jobs vanishing and pinched consumers shopping less, CEOs running businesses that sell aluminum, computer chips, movies and all types of consumer goods are ratcheting down profit expectations. They also are offering little insight on when business will pick up.

Banks want the old bailout back; Fortune

Two months after Treasury Secretary Henry Paulson pulled the plug on his plan to buy troubled mortgage assets, the financial industry is pushing the government to reconsider. Since the Troubled Asset Relief Program, or TARP, took effect in October, Treasury has spent $267 billion buying preferred stock in financial institutions and auto companies, the agency said Thursday.

Builders get reprieve on incentives; Inman News

Federal housing regulators have agreed to delay for 90 days implementation of a rule change that would bar home builders from offering consumers incentives when they agree to use builders' affiliated mortgage and title insurance companies. The new rule -- one of many changes to the Real Estate Settlement Procedures Act (RESPA) being phased in by the end of the year -- was set to take effect Jan. 16.

FDIC FACES UP TO $10B WHACK ON INDYMAC LOANS; New York Post

THE Federal Deposit Insurance Corp. may not have fully washed its hands of IndyMac Bank. Despite the agreement to sell of the once-troubled bank last week to a group of private-equity investors for $1.6 billion, the FDIC may be facing up to $10 billion in previously-unknown liabilities linked to mortgages IndyMac has sold to Fannie Mae, The Post has learned.

Trichet Sees ‘Significant’ Economic Pickup in 2010; Bloomberg

European Central Bank President Jean- Claude Trichet, who chaired the Global Economy Meeting of central bankers today, said the world will emerge from its economic slump next year. “Globally we have the sentiment that 2010 will be the year of pickup, of significant pickup,” Trichet said at a press conference in Basel, Switzerland. Government and central bank measures to stimulate economic growth and revive lending “will progressively play a positive role,” he said.

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Cramdown’ Bid Gains Momentum In Congress; Credit Union Journal

Efforts to allow distressed homeowners to restructure their mortgages in bankruptcy court gained momentum last week when the nation’s largest bank, Citicorp, agreed to support a bill moving through the Senate. Despite Citicorp deal, the banking and credit union lobbies remain adamantly opposed to the so-called cramdown provision, saying they shouldn’t be victimized by bad loan decisions made by homeowners. In addition, they say allowing the bankruptcy judges to restructure mortgages will wreak havoc on the secondary loan market.

Bill Would Make Increased Deposit Insurance Coverage Permanent; Credit Union Journal

A key lawmaker unveiled a bill Friday to amend the terms of the Treasury’s Troubled Asset Relief Program, which would also make the new $250,000 limit for federally insured deposits permanent. Congress voted last year to increase coverage for deposits covered by the FDIC and by NCUA from $100,000 to $250,000 per account for one year. The new bill would extend the increased coverage until 2015, at least.

Citi Seen Selling Smith Barney; American Banker

Morgan Stanley is in talks to take over Citigroup's Smith Barney brokerage division, according to a person familiar with the situation, a sister publication, On Wall Street, reported Friday. Morgan Stanley intends to initially buy a 51% stake in Smith Barney and increase that stake in years to come, according to the source. Morgan will eventually obtain full ownership of Smith Barney. A retention package for brokers is almost certain to be modeled after the deal offered by Bank of America to Merrill Lynch's brokerage force in that takeover.

Frank Touts Bill to Guide Obama Tarp Spending; American Banker

House Financial Services Committee Chairman Barney Frank introduced a bill Friday that he described as a roadmap for the incoming Obama administration as it plots how best to deploy the remaining $350 billion of Troubled Asset Relief Program funds. "It doesn't have to be enacted," Rep. Frank told reporters at a press conference announcing the bill. "If the bill passes the House with a large majority, we have smart and cooperative people in this administration, [and] I'm willing to accept their word that they will act as if this is law."

Should You Refinance?; Wall Street Journal

Waves of homeowners are rushing to refinance their mortgages. And no wonder: Long-term rates have collapsed to historic lows. Thirty-year home loans can run as cheap as 5% right now – down from 6.4% as recently as last summer. By any long-term measure, today's rates are a great deal. The refinancing boom means a sudden surge in new business for a lot of mortgage brokers. The typical refi costs a homeowner maybe $2,000 or so in costs, including fees.

Power to Modify Mortgages Sits Well With Judges; Wall Street Journal

Federal bankruptcy judges say they are eager to have the power to restructure mortgages for struggling debtors because it could save hundreds of thousands of homeowners from foreclosure. Top Senate Democrats are advancing legislation to let bankruptcy-court judges approve new repayment terms on first mortgages for primary residences for homeowners who have sought protection in a Chapter 13 filing. The proposal allowing so-called mortgage cramdowns, in which the principal amount of the loan is reduced, is one of several efforts Democrats are pushing to give homeowners relief as they wrestle with increasing debt levels and plummeting home values.

Mortgage Jobs Slide in November; National Mortgage News

Mortgage companies laid off 4,300 full-time employees in November -- just before mortgage rates dipped and refinancing applications began to surge.

Warehouse Shortfall Could be $370 Billion ; National Mortgage News

Because of a lack of warehouse financing available to non-bank primary funders, upwards of $370 billion in new residential originations could be at risk, according to an estimate made by The Warehouse Lending Project, a coalition of 50 lenders.

For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mccallson@mortgagefamily.com.

Coldwell Banker listings reach smartphones

2009-01-09T12:41:00.000-06:00

Got your phone on you... I want to check out that listing? Can it really be that easy? Sure. You can do everything by phone except the contract! Reach one of your Coldwell Banker Agents and find out all about it!

Necessity is the Mother of Invention

2009-01-09T12:21:00.000-06:00

With unemployment at a 16 year high people will be forced to go back to basics. You have seen the reports of new homes being built on a smaller scale. SOme of us remember when a sibling had to share a room with you or you actually ate dinner in the dining room? I think perhaps we have to ask ourselves what we are doing when we are pushing ourselves for a larger home or a bigger car? If you realize what you need versus what you want you might be better off. When evauluating your financial position in the next year - instead of freaking out on how to make payments on all the things you had to have... do you need them? Maybe upsizing isnt the way to go... but maybe staying where you are another five years is better. Saving a little more from every paycheck is the way to go for atleast another six months...? Time is always the great equalizer. So if you really think that you need the bigger house... wait a couple of weeks to see if you really could afford that larger payment. Save out the money you would have to spend on that larger payment and see if you that really is the best option. It is the best budget to try it before you buy it but not be locked in right? After all this little test of the economy is going to let those that use their money that they have wisely and those that havent learned that living within their means is the way to go, the lesson of humility. So be smart take things slowly and keep your goals in front of you. Ask questions before you act you will be better off.

Hello Donald Trump....????? Money is Available for homes here in the hearland...!

2009-01-09T12:14:00.002-06:00

I have heard all kinds of things.. no money for cars, no money for homes... well I dont think that they live here in Oklahoma. We are still listing and selling homes. Our values are still good and if you poll most people that have sold their homes they did well. Our biggest problem is that because the market is poor in over inventoried cities like: Missouri, Texas, Connecticut... etc. everyone is running around like Chicken Little. Well I have news the sky hasnt fallen here. Our banks are strong and until the dust settles we are at the mercy of what people believe on the television. See for yourself... Oklahoma, Tulsa in particular is always your best bet for a home. Commerical Real estate is defininitely hurting but what we have found is that when you have out of state buyers come and relocate here they usually bring their business or needs to our state. We have also experienced new restaurants with differing styles, different retailers catering to those people who have different needs albeit ethnically or not- either way we are winning. So when the wind comes sweeping down the plains get scootin'- we're enjoying our central location, all four seasons and definitely the various terra firma you can find in all corner of the state. So what are you waiting for!!!!

Todays Mortgage and Industry News

2009-01-09T12:14:00.001-06:00

The American dream is shrinking. For the first time in at least a decade, builders are substantially reducing the size of new houses. "We're trending toward smaller homes," says Gopal Ahluwalia, director of research for the National Association of Home Builders. He says growth in the average size of new single-family homes, which went from 1,750 square feet in 1978 to 2,479 in 2007, is starting to reverse.

Total 2008 job loss: 2.6 million; CNNMoney.com

Yet another sobering government labor report released Friday showed the economy lost 524,000 jobs in December, bringing 2008's total job loss to 2.6 million. Last year's steep drop in employment marked the highest yearly job-loss total since 1945. Economists surveyed by Briefing.com had forecast a loss of 525,000 jobs in the month.

Mortgage help gains momentum; CNNMoney.com

There are many ways to spend $800 billion to revive the economy. In recent days, President-elect Barack Obama has ticked off many of them: invest in infrastructure projects, help states pay for Medicaid, cut taxes on the middle class, expand use of renewable energy. But what about helping those at risk of foreclosure, and by extension the housing market as a whole?

Citi backs foreclosure prevention plan; CNNMoney.com

Citigroup reached an agreement with Democratic lawmakers Thursday on legislation that would allow judges to reduce mortgage debt for individuals who have filed for bankruptcy. Sen. Dick Durbin of Illinois, the bill's architect, said he hoped the participation of Citigroup would entice other mortgage lenders to sign onto the program.

Geithner overhauling, expanding bailout; CNNMoney.com

President-elect Barack Obama's economic team is urgently overhauling the $700 billion financial rescue package to broaden its scope beyond Wall Street, The Washington Post reported Friday. Treasury Secretary nominee Timothy Geithner and other senior economic advisers are working to expand the program's aid to municipalities, small businesses, homeowners and other consumers, the newspaper reported, citing sources familiar with the discussions.

Coldwell Banker listings reach smartphones; Inman News

Coldwell Banker Real Estate LLC this week announced that iPhone and BlackBerry users can now search the company's property listings in 28 countries at coldwellbanker.com. Those looking for a home both domestically and internationally, including Canada, Australia, Mexico, Italy, Aruba and Colombia, will be able to enter specific search criteria such as city, state and price, as well as optional filters including number of bedrooms and bathrooms. When a property is selected, users can view all of the specifications for that home and contact an agent directly. A home-value estimator function is also accessible.

30-year mortgage rates are at historic low; Baltimore Sun

Rates on 30-year mortgages fell to a record level for a fourth straight week, dropping to the lowest mark since Freddie Mac started tracking the data nearly 28 years ago.

Lenders Backlogged By Refinancing Rush; Washington Post

Borrowers are rushing to refinance their mortgages at record low interest rates but face unexpected delays as swamped lenders struggle to cope with the surge at a time when layoffs have sharply cut staffing.

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Distressed-Loan Buyer Gaining After Slow Start; American Banker

The growing mound of nonperforming mortgages led Stanford Kurland, the former Countrywide Financial Corp. executive, to start Private National Mortgage Acceptance Co. LLC last March to buy and service distressed loans. But the expected flood of loan sales did not materialize. "No one was selling and investors were sidelined," Mr. Kurland, the chairman and chief executive of the company known as PennyMac, said in an interview Wednesday. Banks were reluctant to sell, he said, because they would have to take losses, which "would exacerbate their capital issues."

Fannie Mae Tests 'Short Sales' as Alternative to Foreclosures; Wall Street Journal

Fannie Mae is testing a new program to stave off foreclosures by preapproving "short sales" of homes, in which mortgage companies allow homeowners to sell houses for less than the value of existing loans, forgiving the difference. As the number of homeowners in default on their mortgages began to rise several years ago, real-estate agents started touting short sales as a way for troubled borrowers to sell their homes quickly to potential buyers looking for bargains. Real-estate agents reasoned that banks and mortgage companies would go along with short sales, because they tended to lose less money in the transactions than if a home fell into foreclosure.

Wall Street Warns On Federal Home Loan Banks; Credit Union Journal

The Federal Home Loan Banks, which have become critical liquidity providers for credit unions, may face "substantial" losses on their vast holdings of mortgage-backed securities, which could push most of them below minimum capital requirements, Moody’s Investors Service warned yesterday.

NCUA Creates National Exam Team For Trouble Cases; Credit Union Journal

NCUA yesterday activated a special examinations team that will focus on the biggest troubled credit union cases around the country. The National Examination Team will focus on credit unions in particularly hard hit markets in California, Nevada, Arizona and Florida where trouble sin real estate markets have taken a major toll on credit unions.

For full text of any article, please click on the links provided. If you are unable to see the full article, please contact Karen McCallson at karen.mccallson@mortgagefamily.com.

Market Slows Down

2008-11-18T08:51:00.000-06:00

Traditionally our market tends to still be chugging along at a frentic pace till Thanksgiving unless we get terrible weather. Well right now with the national markets trying to rebound and bad economic forecasts all around Oklahoma, we have seen a slow down finally. Now that is not to say that our prices have fallen but that open houses have begun to have no shows and inventory is either scarce or extremely competitive. Folks its always a buyers or sellers market. If the home is updated and priced right it will sell in ANY Market.

With all the bad news being passed around most people think that nothing is happening. The election has hurt us no matter who you voted for... people are concerned that their dollar wont go as far, or that they wont have the tax break that they needed to help them stretch just a little more change out of their income. Realistically speaking... real estate is a LONG TERM investment. I think everyone has seen that national ad campaign of the guy who buys something at an auction and after the gavel drops he says ok I want to sell it.. Real Estate is always going to maintain value. If you keep to the old addage: that I can only sell it for what it is worth to someone looking to buy it. Location, Location Location tends to change depending on people's view of their city, neighborhood and what can be found nearby. Typically you should do due diligence and find out what is going on what plans are in store for the future. Buy that vacant space near a new mall to see what happens and if you are lucky that site will be an investment in your future. Stay involved in your community so you can stay ahead of the trend. Buy when the market is low and when it curves back up you will be sitting pretty. History tends to repeat... so be on the winning side be in it to Win it.. so to speak. Buy Now and Buy Often. Keep it. Good Luck.

Todays Mortgage and Industry News

2008-11-18T08:35:00.001-06:00

Freddie: Expect further declines in lending; Inman News

Economists at Freddie Mac are more pessimistic about the economy than they were a month ago, and no longer believe mortgage originations will rebound in 2009. In a forecast issued today, Freddie Mac's Office of the Chief Economist said total mortgage originations are expected to shrink by about 8 percent in 2009, to $1.65 trillion, before rebounding to $1.82 trillion in 2010. That compares with $3.26 trillion in purchase loans and refinancings originated in 2005.

Loan mods could restore confidence; Inman News

A plan for the government to partially insure lenders when they agree to modify troubled borrowers' loan terms could help stabilize housing markets, restore confidence, and bring buyers back into the market. Federal Deposit Insurance Corp. chairwoman Sheila Bair wants the Bush administration to provide incentives for lenders to do as many as 2.2 million loan modifications.

Stocks headed for a drop; CNNMoney.com

U.S. stocks appeared set for an opening decline Tuesday, as investors remained worried about the fate of the Big Three automakers and awaited testimony from Treasury Secretary Henry Paulson about the government's $700 billion financial bailout plan. At 8:10 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were all lower.

Automakers say if they go, millions of jobs will vanish; USA Today

When the heads of General Motors (GM), Chrysler and Ford Motor (F) and their major union go to Capitol Hill on Tuesday, they will try to convince lawmakers that if the Big Three automakers go under, the fragile U.S. economy will be dealt a blow far costlier than the $25 billion in aid the companies want.

Treasury Takes Stakes in 21 More Banks; Los Angeles Times

As part of its $700 billion economic stabilization plan for the nation's financial companies, the U.S. government confirms that it has invested $33.5 billion in 21 more banks. Beneficiaries range from the five-branch Broadway Financial Corp. in Southern California to U.S. Bancorp, with more than 2,500 branches nationwide. The federal government's initial round of investment, totaling $125 billion, was completed in late October and went to nine major financial institutions. These latest investments are part of a $125 billion second phase.

Fannie Mae to Sell Long-Term Debt; Washington Post

Fannie Mae is holding its first long-term debt sale since Sept. 10 in the hopes of raising $2 billion. The company will reopen the sale of $1 billion in five-year benchmark notes originally offered in June and $1 billion in three-year notes made available initially in August. The delay in long-term debt sales by Fannie Mae is attributed to investor concerns following the company's takeover by the federal government.

Citigroup to Cut Jobs by 15 Percent After Posting $20 Billion Loss; Washington Post

A loss of more than $20 billion over the past year will force Citigroup to reduce its global workforce to 300,000 employees from 352,000 on Sept. 30. The U.S. unemployment rate has risen to 6.5 percent in October from 5.5 percent in June as job losses in the financial, real estate and mortgage industries continue to mount. A major mortgage lender, seller of packaged loans as securities and investor in those securities, Citigroup has been hit hard by the downturn in the mortgage and financial markets. Losses on mortgage-related investments have continued, and the amount of money set aside to cover losses on loans has more than doubled to $24 billion from $9.5 billion over the past two years.

Wealthy Burbs Not Immune to Foreclosure Crisis; Christian Science Monitor

Patchwork Nation's Economic Hardship index assesses 11 community types based on key economic indicators; and while the index slipped to 18.9 in November from 20 in October due to declines in gas prices, there are concerns that wealthier markets are being hit hard by rising foreclosures. The economic hardship score for "Monied 'Burb" communities climbed to 16.4 from 16.2, the highest in the six months that the index has been in existence. Analysts are concerned about hard times in "Monied 'Burbs" and "Boom Towns," as they account for a majority of Americans with high-paying jobs and the most disposable income; and if residents of these communities pull back on spending, it could mean trouble for the national economy.

Assembly's Foreclosure Moratorium on Slow Track; Sacramento Bee (CA)

California has less than two weeks to pass legislation to speed up loan modifications as part of a special session Gov. Arnold Schwarzenegger called in part to address the foreclosure crisis. Schwarzenegger has yet to introduce formal legislation that would implement a three-month foreclosure moratorium, and Assemblyman Ted Lieu, D-Torrance, has delayed a committee vote on his four-month proposal that would require lenders to adopt workout guidelines similar to those of the Federal Deposit Insurance Corp. California Mortgage Association lobbyist Mike Belote said such extensions would mean it could take 10 months to a year from the first missed payment to foreclose on a house. "Now might not be the best time to lock in a specific formula," added Michael Gross, managing director for loan administration at Bank of America.

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Bankruptcy Reform Back; Odds of '09 Passage Likely; American Banker

Mortgage bankruptcy reform is officially reclaiming the congressional stage this week — Sen. Richard Durbin re-introduced his bill Monday ahead of a hearing on the issue Wednesday in the House Judiciary Committee. The Illinois Democrat, who has long tried to let judges restructure primary mortgages in bankruptcy, broadened his bill to mandate loan modifications and limit dividend payments by banks receiving capital from the government.

FHFA: Agencies Are Integrated; American Banker

According to a performance and accountability report recently released by the Federal Housing Finance Agency, it took fewer than 90 days to integrate the Federal Housing Finance Board, the Office of Federal Housing Enterprise Oversight and staff from HUD. Additionally, the report indicates that "no material weaknesses" were detected during an independent outside audit of the Finance Board's internal structure. According to the FHFA, the $6.8 trillion in debt held by Fannie Mae, Freddie Mac and the Federal Home Loan Banks at the end of September was $1 trillion higher than the federal government's total publicly held debt.

Paulson Will Keep Reserve to Stay Flexible for Future; Wall Street Journal

U.S. Treasury Secretary Henry Paulson Jr. is not expected to use what remains of the $700 billion economic stabilization fund to launch any significant new programs but instead will keep funds in reserve to preserve flexibility for the Obama White House and help out in the event of any unforeseen crises. Paulson's decision suggests the Bush administration will not cave to Capitol Hill lawmakers who want that the funds be used to help mitigate mounting home foreclosures. Treasury officials initially planned to use leverage earned from purchasing residential loans and mortgage-backed securities to encourage lenders to help distressed homeowners, but that approach has since been abandoned. Rather, the current administration looks to be focusing on existing programs, including a voluntary plan to have Fannie Mae and Freddie Mac help halt pre ventable foreclosures by enabling certain borrowers to receive loans that would make their mortgage payments at most 38 percent of their monthly income.

Investors Hit BofA Loan Modifications; Wall Street Journal

Investors in securities backed by mortgages originated by Countrywide Financial Corp. oppose Bank of America Corp.'s $8.4 billion program to modify these loans to settle charges against Countrywide for engaging in predatory lending, insisting they were never contacted about the settlement before it was approved by BofA. Although BofA owns just 12 percent of the 400,000 loans covered by the settlement, it did not involve investors in settlement negotiations because contracts with investors give it "delegated authority" to modify another 75 percent of the mortgages. Experts note that such contracts often give lenders delegated authority, but it remains unclear just how much authority they have considering that modifications often benefit some bondholders over others. Foreclosure-prevention programs to be implemented by J.P. Morgan Chase & Co. and Citigroup Inc., in contrast, will concentrate mostly on loans they own.

Feeding Frenzy Breaks Out Over TARP Funds; Credit Union Journal

More than 110 banks submitted applications for an estimated $170 billion in funding by last Friday’s deadline under the Treasury’s Troubled Asset Relief Program, with dozens of other entities seeking assistance under the government’s bailout. The funds are going fast, with $350 billion of the $700 billion bailout package approved by Congress available and the other $350 billion needing additional congressional approval next year. So far, the Treasury has earmarked $125 billion of TARP funds to 34 of the biggest banks.

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